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个股公告正文

张 裕B:2014年半年度报告(英文版)

日期:2014-08-27附件下载

                     Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual ReportYantai Changyu Pioneer Wine Co. Ltd.
       2014 Semi-annual Report
              2014-Final 02
            August 2014
                                                                         Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                                             Contents2014 Semi-annual Report .................................................................................................................. 2I、Important Notice, Contents and Definition................................................................................ 3II、Brief Introduction for the Company ....................................................................................... 5III、Summary of Accounting Data and Financial Indicators ..................................................... 7IV、Board of Directors’ Report ..................................................................................................... 9V、Major Issues ............................................................................................................................. 20VI、Changes in Shares and the Shareholders’ Situation ........................................................... 29VII、Relative situation for preferred shares................................................................................. 33VIII、Situation for Directors, Supervisors, Senior Management ............................................. 34IX、Financial Report .................................................................................................................... 35X、Reference Documents.............................................................................................................. 131
                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                 I. Important Notice, Contents and DefinitionThe Board of Directors , the Board of Supervisors , directors, supervisors & seniormanagement of the Company collectively and individually accept full responsibility for thetruthfulness,accuracy and completeness of the information contained in the semi-annualreport and there are no unfaithful facts, misleading statements or significant omissions.All directors have personally attended the Board of Directors’ meeting for deliberating thesemi-annual report.The Company has no plan to distribute cash dividends and bonus shares; capital reserve willnot be transferred to equity in the semi-annual.Mr. Sun Liqiang (Chairman of the Company), Mr. Leng Bin (Chief Financial Officer) and Mr.Jiang Jianxun (Financial Manager) assure the truthfulness, accuracy and completeness of thefinancial report in the semi-annual report.This semi-annual report involves in forward-looking statements about future plan etc. It basesmainly on the basic command of economic development trend of China and the judgment ofseveral years of experience in this industry, with a great uncertainty. The Company does notgive the investors tangible commitment, so the investors should be in a special attention, andchoose wisely.
                                           Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                  Definition
         Definition Item    Refers to                     Definition Content
    Company/The Company         Refers to Yantai Changyu Pioneer Wine Co. Ltd.
    Changyu Group/Controlling   Refers to
                                        Yantai Changyu Group Co. Ltd.shareholder
    CSRC                        Refers to China Securities Regulatory Commission
    SSE                         Refers to Shenzhen Stock Exchange
    CNY                         Refers to Chinese Yuan
                                                                  Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                 II、Brief Introduction for the Company1. Company’s information
    Abbreviation of the Shares:       Changyu A、Changyu B                 Code number of the Shares   000869、200869Abbreviation of the Shares
                                  -after alteration
    Place of listing of the Shares    Shenzhen Stock Exchange
    Legal Name in Chinese             烟台张裕葡萄酿酒股份有限公司Abbreviation of Chinese name 张裕
    Legal Name in English             YANTAI CHANGYU PIONEER WINE COMPANY LIMITEDAbbreviation of English name CHANGYU
    Legal Representative              Mr. Sun Liqiang2. Contact person and information
                                            Secretary       to   the    Board       of Authorized Representative of the
                                            Directors                                  Securities Affairs
    Name                                        Mr. Qu Weimin                             Mr. Li Tingguo
    Address                                     56 Dama Road, Yantai, Shandong, China     56 Dama Road, Yantai, Shandong, China
    Tel                                         0086-535-6633658                          0086-535-6633656
    Fax                                         0086-535-6633639                          0086-535-6633639
    E-mail                                      quwm@changyu.com.cn                       stock@changyu.com.cn3. Other information1)、The Company’s contact informationWhether there is any change for the Companys registered address, office address, post code,website and e-mail address during the report period.
    □Available     V Not availableThere is no any change for the Companys office address, post code, website and e-mail addressduring the report period, please see 2013 annual report for more details.2)、Information disclosure and filing LocationWhether there is any change for the information disclosure and filling location during the report
                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Reportperiod.
    □Available     V Not availableThere is no any change for the newspapers in which the Companys information is disclosed,website assigned by CSRC to carry the semi-annual report and the filing location during the reportperiod, please see 2013 annual report for more details.3)、Registration changesWhether there is any change for the registration during the report period.
    □Available     V Not availableThere is no any change for the companys registration date & place, business License No., taxregistration No. and organization code during the report period, please see 2013 annual report formore details.
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
        III、 Summary of Accounting Data and Financial Indicators1. Key accounting data and financial indicatorsWhether the Company makes retroactive adjustments or restates the accounting data of previousfiscal years because of changes of accounting policy and/or accounting errors.
    □Yes      V No
                                                                              More or less than
                                                       In the same period of
              Item                In the report period                       the same period of
                                                              last year
                                                                                last year(%)
    Business revenue (CNY)               2,301,990,248           2,539,378,234                   -9.35%Net profit attributed to the
    shareholders of the listed            638,041,311             740,574,221                   -13.85%company (CNY)Net profit attributed to theshareholders of the listed
    company after deducting the           629,900,854             736,714,423                   -14.50%irregular profit and loss (CNY)Net cash flows from the
                                      889,675,131             409,158,489                   117.44%operating activities (CNY)
    Basic earnings (CNY) per share            0.93                     1.08                     -13.89%Diluted earnings (CNY) per
                                          0.93                     1.08                     -13.89%share
    Return on net assets (%)                 9.77%                   11.79%                      -2.02%
                                    At the end of the       At the end of last        More or less than
                                     report period                year               the end of last year
    Total assets (CNY)                   8,614,013,724           8,001,532,444                   7.65%Net Assets attributed to the
    shareholders of the listed           6,846,051,413           6,208,279,705                  10.27%company (CNY)2. Accounting data difference between domestic and foreign accounting standards1)、Difference in net profit and net asset disclosed in the financial report under the PRC accountingstandards and international accounting standards.
    □Available    V Not availableThere is no difference in net profit and net asset disclosed in the financial report under the PRCaccounting standards and international accounting standards during the report period.
                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report2)、Difference in net profit and net asset disclosed in the financial report under the PRC accountingstandards and foreign accounting standards.
    □Available       V Not availableThere is no difference in net profit and net asset disclosed in the financial report under the PRCaccounting standards and foreign accounting standards during the report period.3. Details of irregular profit and loss
    V Available       □Not available
                                                                                                       Unit: CNY
                          Item                               Amount                      ExplanationGain on disposal of non-current assets, including
                                                              -10,897                           -the reversal of accrued impairment provisionTax refund or exemption that is either
                                                                  0                             -non-recurring or without proper approvalGovernment grants credited in profit and loss(except for those recurring government grants
    that are closely related to the entity's operation,         8,772,080                           -in line with related regulations and have properbasis of calculation)
    Other non-operating expense and income                   478,097                           -
               Less: Income tax effect                      1,098,823                           -
                         Total                              8,140,457                           -The reasons shall be made clear and definitely as to the non-recurring profit and loss that the Companyhas defined by virtue of the Explanatory Announcement on Public Companys Information DisclosureNo.1 - Non-recurring Profit and Loss and as to regarding the non-recurring profit and loss as recurrentprofit and loss as specified in the Explanatory Announcement on Public Companys InformationDisclosure No.1 - Non-recurring Profit and Loss.
    □Available       V Not availableThere is no situation regarding the non-recurring profit and loss as defined and specified in theExplanatory Announcement on Public Companys Information Disclosure No.1 - Non-recurringProfit and Loss as recurrent profit and loss.
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                           IV、 Board of Directors’ Report1. SummarizationDuring the report period, under the influence of multiple factors, such as slowdown of domesticeconomic growth, overwhelming flow of foreign wine into Chinese market and the relative nationalpolicies and so on, the competition in the domestic wine industry was fierce, especially there was agreat decline on the effective demands for the premium wines, which brought a strongpressure to the Companys production and operation. Facing quite a lot of externaldisadvantages, the Company insisted to focus on the market, in accordance with the trend of marketdevelopment, adjust the marketing tactics and product structure in time, constantly perfect themarketing channels and promote product sales, so that to restrain the situation of decline in operatingresults. In the second quarter (April, May, June), rebound of main business income and net profit indifferent levels emerges, 14.86% and 6.23% respectively more than the same period in previous year;Based on this, the company realized business income of CNY 2301.99 million, 9.35% less than thesame period in previous year; realized net profit of CNY 638.04 million, 13.85% less than the sameperiod in previous year. Both decline range diminished, compared with those in the first quarter.2. Analysis to main businessPeriod comparison of main financial data
                                                                                                  Unit: CNY
                                   In the same
                   In the report                    More or
                                   period of last            Reason for changes
                   period                           less (%)
                                   year
                                                            Mainly the decrease of sales revenue
    Operating                                                   for the high-end cheteau wine,
                   2,301,990,248 2,539,378,234       -9.35%
    revenue                                                     comparing with the same period of
                                                            last year.
                                                            Mainly the changes of sales products
                                                            structure, the proportion of high-end
                                                            products declining, the proportion of
    Operating cost      754,302,386      759,692,089     -0.71% low grade products increasing, the
                                                            increased price of raw material
                                                            including grapes comparing with the
                                                            same period of last year
                                                            According to the market situation,
    Sales expense       486,481,030      584,280,630    -16.74% appropriately compressing marketing
                                                            investment
                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual ReportManagement
                     103,980,497       104,896,929      -0.87%expense
    Financial expense -14,254,385          -13,607,053      -4.76%
                                                                 Mainly decreasing of net profit,Income tax
                       210,241,876       244,475,516        -14% comparing with the same period ofexpense
                                                                 last year
                                                                 Mainly increasing of expenditure of
    R&D investment           5,436,054         5,342,521       1.75% R&D investment, comparing with the
                                                                 same period of last yearNet amount ofcash flow
                                                                   Mainly decreasing of cash outflow
    generated in           889,675,131       409,158,489 117.44%
                                                                   from various operating activitiesoperatingactivitiesNet amount ofcash flow
                                                                   Mainly the decrease of cash used to
    generated in          -240,974,464      -502,430,760     52.04%
                                                                   pay fixed deposit over 3 monthsinvestmentactivitiesNet increased
                                                             Mainly increase of net amount of cashamount of cash
                       648,662,711       -93,272,271 795.45% flow generated in operating andand cash
                                                             investment activitiesequivalentsWhether there is any great change for the Company’s profit structure or profit source during the reportperiod
    □Available      V Not availableThere is no great change for the Companys profit structure or profit source during the reportperiod.
                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual ReportWhether there is any future development and planning disclosed in the public Company’s sharesprospectus, collecting prospectus and asset restructuring report during the report period.
    □Available      V Not availableThe Company does not disclose any future development and planning in the public Companysshares prospectus, collecting prospectus and asset restructuring report during the report period.Review and summary of the progress situation during the report period of the company’sbusiness plan disclosed in earlier stageDuring the report period, influenced by the abrupt change of market situationand the great recession on the demand for the premium wines, in order to dealwith the unfavorable business environment, during the report period, the Company carried out theoperation strategy of steady development in the middle and high-end wines, and vigorousexpansion for the low-level wines, brandy and imported wines with own brands.While making efforts to promote the development of middle and high-end wines, theCompany made an appropriate tilt on marketing resources to the low-level wines, brandyand imported wines with own brands for meeting the market demand, whicheffectively curb the decline on the business income. The main work in the report period is asfollowing:Firstly, to perfect sales system construction, strengthen the marketing process management. TheCompany has completed to reorganize and adjust all levels employees of sale team, set upadditionally prefecture-level city managers, strengthen management of salesperson classification,perfect salesperson performance assessment method, which are better at arousing the motivation ofsalesperson; to set up middle-small restaurant direct-supplying management company and Lanzhou,Yinchuan and Xianyang direct-supplying company, further to expand direct-supplying business.; toclear up and simplify companys existing products system, making core products system whichadapt to the future development much clearer; further to define major push for different kind ofproducts, strengthen marketing pertinence; through constructing the market work regulation ofcontact point and examining sales terminal, to promote the full implementation and development ofthe marketing strategy named “move towards terminal”.Secondly, to continue the propulsion of informatization construction and management innovation.The Company has completed the projects of the first and second phase of SAP system. SAP systemhas been taken comprehensive on-line operation during the report period. Focusing on thefuture development goals and the urgent and significant problems to solve onmanagement, production, technology and marketing, the Company proposed andcompleted over 279 items of innovation and reasonable projects, which brought the
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Reportrelated works and management level to a new step.Thirdly, to reinforce the management of cost and expense, making great efforts to improveeconomic benefits. The Company has enforced the assessment of input-output ratio ofadvertisement fee and capital occupation in the bulk wine, packing material and finished goods, sothat to reduce capital occupation and increase the efficiency and effectiveness in the use of funds;has compressed production cost expense through the measures of centralized purchasing, packagingimprovements, packaging simplification, and cancelling commissioned processing, which helped toreduce per ton of wine cost, and increase economic benefits.Fourthly, to accelerate the research and development (R&D) of new technology, new procedure,new products, steadily promote the construction of technological renovation projects. The Companyincreased the input intensity of technology projects, strengthened R&D ability, and completed todeclare 3 items of scientific and technological achievements in state, provincial and city level, andone item patent; By means of strict implementation of special audit and third-party supervision toconstruction projects, projects quality, investment scale and construction progress have beencontrolled preferably, and the main investment projects went well.During the second half year of 2014, the Company will mainly fulfill the following work and measuresas follows:Firstly, persist to drive the innovation of sales modes, strengthen to develop and control sales terminal.The Company will optimize the current sales mode of dealers as the main part, properly enlarge thescale of delivery dealers and direct trade, insist to the working system of contact point markets whichare managed by companys leaders, step up the development of sales terminal and managementintensity, and accelerate to promote the moving terminal management system construction, which willprovide technology supports and examination approach for terminal work and making great efforts tograsp the products initiative in terminal sales.Secondly, continue to reinforce the management of cost expenses, improve effects in the use of funds.The company strengthens to budget management and refine assessment items, simplify productspacking, come into full effects of tray transportation, expand centralized purchasing of raw material,optimize pricing model of purchasing grapes price etc, intensify the management control of main costexpenses in production cost and sales expenses, increase the effect in the use of funds, add companybenefit.Thirdly, ensure steady progress of investment projects, optimize the production structure, enlargeproduction capacity and upgraded management level. In the light of 2014 capital expenditure plans
                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
    schedule, the Company steadily promote investment projects construction, strictly control the project
    schedule and the investment budget, ensure good quality and construction safety of engineering, lay a
    solid foundation for further improving production capacity and optimizing productivity structure;
    accelerate implement and propulsion of SAP, reinforce the training of related staffs, improve preferably
    the Companys management level and control ability by means of modern information technology.
    Fourthly, to reinforce the management of the vineyard bases, perfect the work on grape purchase, the
    Company will make further definition to the duty and division of administrators at all-levels vineyards
    and grapes planters, strengthen the training and assessment of grape planters, reinforce to guide and
    manage vineyards on site, encourage to popularize the mechanized farming, improve grape quality and
    reduce the cost of raw materials; accomplish grape purchasing plans and implementation scheme,
    organize and deploy internal resources scientifically, guarantee both quality and quantity to complete
    acquisition grapes, ensure sufficient and quality grape material supply.
    3. Structure of main businesses
                                                                                                      Unit: CNY
                                                     Increase or           Increase or          Increase or
                                                     decrease of           decrease of          decrease of
                                          Gross
              Operating      Operating                operating          operating cost         gross profit
                                          profit
               revenue          cost               revenue over the       over the same       over the same
                                           (%)
                                                   same period of         period of last       period of last
                                                    last year (%)            year (%)               yearSectorWine and
    alcoholic   2,295,163,767 748,344,147 67.39%                  -9.44%                -1.26%              -2.70%beveragesProduct
    Wine        1,765,168,335 553,653,304 68.63%                  -9.28%                 4.52%              -4.14%
    Brandy        467,055,981 158,456,974 66.07%                  -4.69%                -6.24%               0.56%Sparkling
               20,570,297 13,653,755 33.62%                    2.01%                 8.01%              -3.69%wine
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
    Other           42,369,154 22,580,114 46.71%               -45.95%               -51.50%                6.10%RegionEastern
             1,953,179,965 628,664,664 67.81%                -9.56%                -1.42%              -2.66%RegionMiddle
               233,339,819 82,589,404 64.61%                 -8.39%                -0.67%              -2.75%RegionWestern
               108,643,983 37,090,079 65.86%                 -9.56%                 0.08%              -3.29%Region
    4. Analysis to core competitiveness
    Compared with the participants in the arena of the Chinese wine sector, we believe that the Company is
    provided with the following advantages:
    Firstly, the Company has been enjoying a well-known wine brand since 120-odd years, both “Changyu”
    and “Jiebaina” are Chinese famous trademarks that have strong influence and good reputation.
    Secondly, the Company has set up a nationwide marketing network, formed a “three-level” marketing
    network system mainly composed of the Companys salesmen and dealers, possessed the strong
    marketing ability and market exploitation ability.
    Thirdly, the Company has already had strong research strength and a product R&D system, owned the
    only “State-level Wine R&D Center”, made mastery of advanced winemaking technology and
    production processes, been powerful enough in product innovation and established a perfect quality
    control system.
    Fourthly, the Company is in possession of a lot of grape-growing bases to meet its future development,
    having developed a great deal of vineyards in the most suitable areas for wine grape growing such as in
    Shandong, Ningxia, Xinjiang, Liaoning, Hebei and Shaanxi, whose scales and structures have
    generally met the Companys needs for development.
    Fifthly, the Company has a great variety of products composed of all grades, its wine and brandy of
    over 100 sorts can meet different consumers demands. The Company has taken the lead in the
    domestic wine sector through rapid development in the past 10-odd years and has possessed
    comparative superiority in the future competition.
    All in all, the Company has built up a strong core competitive edge and obtained and maintained a
    relatively dominant position in the long-term market competition.
    5. Analysis to investments
    1)、Situation for equity investment abroad
                                                           Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report① Situation for investment abroad
    □Available    V Not availableDuring the report period, the company did not have investment abroad.② Situation for holding equity of financial enterprises
    □Available    V Not availableDuring the report period, the company did not hold any equity of financial enterprises.③ Situation for security investment
    □Available    V Not availableDuring the report period, there were no security investments.2)、Trust management, derivatives investment and entrusted loans① Situation for trust management
    □Available    V Not availableDuring the report period, the company did not have trust management.② Situation for derivatives investment
    □Available    V Not availableDuring the report period, the company did not have derivatives investment.③ Situation for entrusted loans
    □Available    V Not availableDuring the report period, the company did not have entrusted loans.3)、Use of raised capital① Use of total raised capital
    □Available      V Not available② Commitment item of raised capital
    □Available      V Not available③ Variation item of raised capital
    □Available    V Not availableDuring the report period, there were no commitment item of raised capital happened.④ Item of raised capitalIn the past three years, the Company did not raise capital through issuing stocks or bonds, also therewere no raised capital continuing to the report period.4)、Analysis to the major subsidiaries and joint stock companiesV Available □Not availableInformation about the major subsidiaries and joint stock companies
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                                                                                                                     Unit: CNY
    Company      Company                      Main products or Registered                                      Business     Operating
                           Industry                                           Total assets     Net asset                              Net profit
    name         type                          services             capital                                   revenue      profit
    Yantai                                     To research,Changyu-
                       Wine      and produce and sellCastel Wine
                       alcoholic     wine and         USD 5
    Chateau Co. Subsidiary                                                        281,027,978 83,305,969 38,866,996 4,304,385 3,099,755
    LTD.                   beverages     sparkling wine million
                         industry          as well as the
                                           tourism service
    Langfang                 Wine        andCastel-
             Joint stock alcoholic         To produce and USD
    Changyu Wine                                                        57,539,508 47,192,412 26,943,014 278,873                          221,457
             company beverages             sell wine      6,108,818Co. LTD.
                         industry
    Yantai Kylin Subsidiary                    To produce and
    Packaging               Packaging                               CNY 15.41
                                           sell packaging                     69,018,458 25,737,428 33,965,786 1,658,705 1,247,891
    Co. LTD.                industry                                million
                                           material
    Beijing       Subsidiary Wine        and
    Chateau                                    To research,
                         alcoholic                              CNY 110
    Changyu                                    produce and sell                   695,174,432 77,053,340 51,140,545 -9,040,788 -9,145,407
                         beverages                              million
    AFIP Global                                brandy and wine
                         industry
    Chateau       Subsidiary Wine      andLiaoning
                         alcoholic     To produce ice           CNY 26.30
    Changyu Ice                                                                   87,354,495 58,514,577 16,805,693 -4,614,383 -4,607,180
    Wine     Co.,            beverages     wine                     million
    Ltd.                     industry
    Xinjiang    Subsidiary Wine      and       To plant grape,
    Tianzhu                                    produce and sell CNY 75
                       alcoholic
    Winery Co.,                                grape juice, bulk                  192,284,733 159,336,889 31,963,458 -2,703,625 -2,703,224
    Ltd.                   beverages                             million
                                           wine and fruit
                       industry            wine5)、Important projects financed with non-raised capital
    V Available        □Not available
                                                                                                                                     Unit: CNY0000
                                                                                                Actual
                                                                                             accumulation
                                                            Total      Investment
                                                                                              investment       Project
                Project Name                           Planned         in the report                                       Project benefits
                                                                                            until the end of progress
                                                      Investment period
                                                                                              the report
                                                                                                period
    Construction of Changyu Reina Chateau                                                                                    Facilities have been
                                                              31,074                7,917            36,917       98% completed and put
    Sha'anxi                                                                                                                 into production.
                                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                                                                                             Facilities have beenConstruction of Chateau Moser XV
                                                            24,415           2,800          26,800      97% completed and putNingxia
                                                                                                             into production.
                                                                                                             Facilities have beenConstruction of Changyu Baron Balboa
                                                            23,343           1,876          28,876      98% completed and putChateau XinJiang
                                                                                                             into production.Construction of Changyu International Wine
                                                            65,331          11,000          38,000      55% 0City blending and cooling CenterConstruction of Changyu International Wine
                                                            46,736           3,000          28,500      60% 0City Bottling CenterConstruction of Changyu International
                                                            12,095           2,295           8,095      65% 0Wine City Logistics CenterConstruction of Changyu Vine and
                                                            20,000           5,000           8,200      40% 0Wine Research Institute
    Construction of Treasure Wine Chateau                       14,545           6,940           9,545      65% 0
    Investment in landscaping                                    5,000           1,394           2,487      50% 0
    Construction of pioneer franchised store                    10,000           1,661           1,661      15% 0
                       Total                               252,539          43,883         189,081     --             --Inquiry index in the designated website disclosed in the
                                                                     Notemporary announcement6. Forecast for the operation achievements from January to September of 2014Caution and explanation for the prediction that the cumulative net profit from the beginning of theyear to the end of next report period could be in a loss or there will be in a great change comparingwith the same period of last year.
    □Available            V Not available7. Explanation from the board of directors and the board of supervisors for the “Non-standard AuditReport” issued by the accountant firmThe financial report of the semi-annual report is not audited by the accountant firm.8. Explanation from the board of directors for the “Non-standard Audit Report” of last year
    □Available            V Not available9. Implementation of profit distribution during the report periodThe implementation or adjustment for the profit distribution policies during the report period,
                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Reportespecially the cash dividend plan and the scheme of increasing equity with capital reserve.V Available □Not availableOn July 5, 2014, the Company disclosed the Announcement of Dividend Distribution for the year2013, according to which the Company would take the total capital stock 685,464,000 shares at thattime as a cardinal number to distribute CNY 5 in cash for per 10 shares to all stockholders (taxincluded. After deduction of taxes, as to Stock A, QFII, RQFII as well as the individuals holding therestricted reform-related shares and the restricted new shares and the investment fund holders wouldenjoy CNY 4.5 per 10 shares. The differential dividend tax rates would be adopted for theindividuals holding the non-restricted reform-related shares, the non-restricted new shares and theunlimited shares and the investment fund holders, CNY 4.75 for per 10 shares in advance andafterwards depending on the investors reduction of shares, making up the difference according tothe actual shares held on the equity registration day. As to the non-resident enterprises other thanQFII and RQFII, the Company would neither withhold nor pay the income tax on their behalf butthe taxpayers should pay the tax in the place where the income is received. As to Stock B, thenon-resident enterprises would enjoy cash dividend CNY 4.5 for per 10 shares. The differentialdividend tax rates would be adopted for the inland (overseas) individual stockholders, CNY 4.75 forper 10 shares in advance and afterwards depending on the investors reduction of shares, making upthe difference according to the actual shares held on the equity registration day.)The share registration day of A Stock was on July 10, 2014 and the ex-dividend day was on July 11,2014.The last trading day of B Stock was on July 10, 2014, the share registration day was on July 15,2014 and the ex-dividend day was on July 11, 2014.The cash dividend for Stock A holders that the company entrusted China Securities Depository andClearing Corporation Limited Shenzhen Company to distribute was directly transferred to theiraccounts via securities service company (or other depository department) on July 11, 2014. The cashdividend for Stock B holders was directly transferred to their accounts via securities service companyor other depository department on July 15, 2014. The cash dividend enjoyed by Yantai Changyu GroupCo., Ltd. was directly paid by the Company at the same time.
                                                          Special explanationWhether it is in accordance with the requirements of the regulation in the Articles of Association and the resolution of Yesshareholders
    Whether the distribution standard and proportion is clear and definite                                                  Yes
    Whether the relative decision process and mechanism is complete                                                         Yes
    Whether the independent directors perform their responsibilities and play the roles.                                    YesWhether the small and middle shareholders have the chance to express their advices and appeals, as well as their Yeslawful right and interest is in an enough protection.Whether it is legal and transparent for the condition and process while adjusting and amending the cash dividends Yes
                                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Reportdistribution policy.10. Preliminary schemes of profit dividend and increasing equity with capital reserve during the reportperiod
    □Available            V Not availableThere is no schemes of paying cash dividend, bonus share and increasing equity with capital during thesemi-annual period.11. the Company’s Receptions, Studies and Visits
                                                 Type     of                                                    Main discussed
                       Reception     Reception
    Reception time                                reception                   Reception object                   contents and the
                       place         way
                                                 object                                                      information provided
                                                               Shuai hu from China International Fund
                                                                                                            current business
                       Meeting                                 Management Co., Ltd. Chen yu from
                                                                                                            operation
    2014.05.20             room of the   Field survey Institution AEGON-INDUSTRIAL Fund Management
                                                                                                            situation and
                       Company                                 Co., Ltd. Cao Liyan from BOC international
                                                                                                            other issues
                                                               (China) Limited
                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                       V、Major Issues1. Corporate Governance Situation of the CompanyThe Company has according to relevant national laws and rules including the “Company Law of thePeople’s Republic of China”, “Securities Law of the People’s Republic of China” , “Guidelines onCorporate Governance of Listed Companies”, and also other laws and rules , constantly improved itslegal entity structure, legally conducted its activities. Currently, the Companys corporate governance isin compliance with the Company Law and the relevant provisions of China Securities RegulatoryCommission.2. Material litigation and arbitration
    □ available      √not availableThere are no material litigation and arbitration during the report period.3. Media’s doubts
    □ available     √not availableThere are no common doubts issued by Media during the report period.4. Bankruptcy reorganization
    □ available       √not availableThere are no related issues of bankruptcy reorganization happened during the report period and untilthe report period.5. Transaction in Assets1)、Acquisition of assets
    □ available       √not availableThere is no acquisition of assets during the report period and until the report period.2)、 Assets for sale
    □ available       √not availableThere are no assets for sale during the report period and until the report period.3)、Business merger
    □ available      √not availableThere are no business merger happened in the report period and until the report period.
                                                 Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report6. Implementations and influences of Company’s equity incentive
    □ available      √not availableThere are no plans and implementations of Companys equity incentive during the report period.
                                                                                                                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
           7. Important related transactions
           1)、Related transactions in relation to routine operations
           √available               □not available
                                                                                                                                                                                  Market
                                                                                 Pricing                                Amount        of                          Settlement       price of
                                                              Content       of                       Price         of                      Proportion in the
                                            Type of related                      principle      of                      related                                   method        of securabl Date            of
    Related party           Interrelationship                     related                                related                               same    kind      of                                                  Disclosure index
                                            transaction                          related                                transaction                               related          e    same disclosure
                                                              transaction                            transaction                           transaction (%)
                                                                                 transaction                            (CNY 0000)                                transaction      transacti
                                                                                                                                                                                   on
    Yantai       Changyu Under the same Purchasing                Purchasing         On the base of Agreement
                                    commodities               liquor products market         price, price
    Wine          Culture Parent Co.                              derivatives        negotiated                             253.6              0.34%                  Cash            —           2014.04.26
    Museum Company                                                                   pricing
    Yantai       Changyu Under the same Purchasing                Purchasing         On the base of Agreement                                                                                                        http://www.cninfo.co
    Window      of     Wine Parent Co.          commodities       liquor products market         price, price                                                                                                        m.cn/information/co
                                                                                                                        26.9               0.04%                  Cash            —           2014.04.26
    City Co.                                                      derivatives        negotiated                                                                                                                      mpanyinfo.html
                                                                                 pricing
    Yantai           Shenma Under the same Purchasing             Purchasing         On the base of Agreement
                                                                                                                        6,098.2            8.08%                  Cash            —           2014.04.26
    Packaging Co.           Parent Co.          commodities       packing            market      price, price
                                                                                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                                     materials          negotiated
                                                                        pricing
    Yantai      Changyu Under the same Purchasing        Purchasing         On the base of Agreement
    Zhongya Medicine & Parent Co.        commodities     liquor products    market    price, price
                                                                                                    117.6   0.16%          Cash           —        2014.04.26
    Healthy Liquors Co.,                                                    negotiated
    Ltd                                                                     pricing
    Yantai      Changyu Under the same Selling           Selling      liquor On the base of Agreement
    Wine            Culture Parent Co.   commodities     products           market    price, price
                                                                                                    342.6   0.15%          Cash           —        2014.04.26
    Museum Company                                                          negotiated
                                                                        pricing
    Yantai      Changyu Under the same Selling           Selling      liquor On the base of Agreement
    Window     of     Wine Parent Co.    commodities     products           market    price, price
                                                                                                    434.9   0.19%          Cash           —        2014.04.26
    City Co.                                                                negotiated
                                                                        pricing
    Yantai      Changyu Under the same Selling           Selling      liquor On the base of Agreement
    Zhongya Medicine & Parent Co.        commodities     products           market    price, price
                                                                                                    42.7    0.02%          Cash           —        2014.04.26
    Healthy Liquors Co.,                                                    negotiated
    Ltd                                                                     pricing
    Yantai      Changyu Parent Co.       Leased assets   Leasing     storage On the base of Agreement   292.9   0.14%          Cash           —        2014.04.26
                                                                                                                         Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
    Group Co. Ltd.                                            and housing      market    price, price
                                                                           negotiated
                                                                           pricing
    Yantai       Changyu Parent Co.          Intangible assets Permission    to On the base of Agreement
    Group Co. Ltd.                           licensed use     use           the market   price, price
                                                                                                       4,341.3    100%          Cash           —        2014.04.26
                                                          trademark        negotiated
                                                                           pricing
    Yantai       Changyu Parent Co.          Intangible assets Permission    to On the base of Agreement
    Group Co. Ltd.                           licensed use     use patents      market    price, price
                                                                                                       2.5        100%          Cash           —        2014.04.26
                                                                           negotiated
                                                                           pricing
    Total                                                                                                  11,953.2   —
    The details of the large sales returns                                     NoThe total amount of the transaction will be expected according to its Nocategory and its actual performance during the report periodThe reasons of big differences between the transaction price and the market Noreference price
          2)、 Related transactions in asset procurement and sale
          □ available              √not available
                                                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual ReportThere are no related transactions in asset procurement and sale during the report period.3)、Important related transactions in joint external investment
    □ available     √not availableThere are no important related transactions in joint external investment during the report period.4)、Record of related credits and liabilities
    √available      □not availableWhether there is a record of non-operating related credits and liabilities.□ Yes √ NoThere is no record of non-operating related credits and liabilities.5)、Other important related transactions
    □ available        √not availableThere are no other important related transactions in the report period.
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report8. Controlling shareholder and related party in funds occupation situation of non-operating ofthe Listed Company
    □ available       √not availableThere are no situation in controlling shareholder and related party in funds occupation ofnon-operating of the Listed Company.9. Major and important contracts and execution results1)、Trusteeship, contract and leasehold issues① Trusteeship situation
    □ available         √not availableThere are no trusteeships happened during the report period② Contract situation
    □ available         √not availableThere are no contract situation happened during the report period.③ Leasehold situation
    √available        □not availableLeasehold situation explanationOn 1st January 2012, the Company set out the house leasing contract with the Parent company. Onthe basis of this agreement, The Company leased property of the Parent company as businesspurpose from 1st January,2012, The rent per year is CNY 5.858 million, the valid date of thiscontract expires to 31st December 2016. From January to June of 2014, the Group Company ensuresthe rent of the Parent company amount to CNY 2.929 million.In January to June, 2016, the leasing between the Group Company and related parties takes up28.25% of Group companys leasehold fee.Project in gains and losses for the Company to achieve more than 10% of the total profit during thereport period.□ available √ not availableThere is no Project in gains and losses for the Company to achieve more than 10% of the total profitduring the report period.2)、Guarantee situation
    □ available       √not availableThere are no guarantees situation during the report period.Violation situation of external guarantee
    □ available       √not availableThere is no violation situation of external guarantee during the report period.3)、 Other important contracts
    □ available       √not availableThere are no other important contracts during the report period.4) Other substantial transaction
                                                                  Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
    □ available       √not availableThere is no other substantial transaction during the report period.10. The commitments of the Company or shareholders of the Company holding more than 5%during the report period or until the report period
    √available               □not available
                                                                                                                Commit
                                         Commitment                                                Commitment
           Commitments                                           Commitment content                             ment      Implementation
                                            Party                                                      time
                                                                                                                period
                                                                                                                          has been
    Commitments at share reform          -                -                                           2006.03.11   3 years
                                                                                                                          fulfilledCommitments made in acquisition
                                     -                -                                                         -         -report or equity changes report
    Commitments at asset restructuring -                  -                                                         -         -
                                                      According to "Trademark License Contract",
                                                      the Company will pay trademark royalty for
                                                      the "Changyu"products of Yantai Changyu
    Commitments at the initial public    Yantai Changyu                                                                       In-process
                                                      Group Co., Ltd every year, Yantai Changyu 1997.05.18      Forever
    offering or refinancing              Group Co., Ltd                                                                       performed
                                                      Group Co., Ltd will use trademark to
                                                      advertise Changyu trademarks and the
                                                      Contract products.
                                     Yantai Changyu                                                                       Has been
                                                      Non Intra-industry competition               1997.05.18   Forever
                                     Group Co, Ltd                                                                        performedCommitments made to the minority
                                     -                -                                                         -         -shareholders of the CompanyCommitment under timely
                                     Yesimplementation or notSpecific reasons of not completing
    the implementation and the next      Nostep11. The appointment and dismissal of certified public accountants
    √ Yes    □ NoThe Company will continue to appoint Deloitte HuaYong certified public accountants CO., LTD(Special General Partnership) as the audit authority in 2014 with term employment period of oneyear.Whether or not semi-annual financial report has been audited.
    □Yes     √ No
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report12. Punishment and rectification□ available √ not availableThere is no punishment and rectification situation happened during the report period.13. Withdrawal risk revelation of violating laws and rules□ available √ not availableThere is no withdrawal risk revelation of violating laws and rules during the report period.14. Explanation for other significant matters□ available √ not availableThere are no other significant matters during the report period.
                                                              Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
         VI、Changes in Shares and the Shareholders’ Situation1. Changes in shares
                                                                                                                   Unit: Share
                         Amount before this change                  Change (+, -)                    Amount after this change
                                                                      Transfer
                                         Percentage Allot Distribut other capital            Sub                   Percentage
                           Amount                    new e bonus                    others             Amount
                                             %                        to share               total                     %
                                                    share share
                                                                       capital
    2、Unrestricted shares     685,464,000        100%                                                   685,464,000        100%
    (1)、A shares              453,460,800      66.15%                                                   453,460,800      66.15%
    (2)、B shares              232,003,200      33.85%                                                   232,003,200      33.85%
    3、Total shares            685,464,000        100%                                                   685,464,000        100%Cause of share change□ available √ not availableApproval of stock change□ available √ not availableTransfer of changed shares□ available √ not availableThe influence of stock change on the financial indicators such as basic earnings per share, dilutedearnings per share of the latest year and the latest period, net asset per share belonging to theCompanys common stock holders, etc..
    □available     √not availableOther contents which the Company thinks necessarily or securities regulatory departments claim todisclose.
    □available     √not availableChanges situation in the Companys total shares, structure of shareholders, the Companys assetsand liabilities
    □available     √not available
                                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report2. The number of shareholders of the Company and the shareholdings
                                                                                                                          Unit: share
                                                                                                                              Total 47385
    Total shareholders in the report period                                                                     36242 shareholders of A share
                                                                                                            11143 shareholders of B share
                                    Shareholders holding more than 5% or become a top 10 shareholders.
                                                                                             Number                         Pledged or frozen
                                                                                   Changes
                                                                    Shares held                 of         Number of
                                                           Percenta
                                            Character of            until the end during the
        Name of Shareholders                                  ge                             restricte     unrestricted                       Amou
                                            shareholders            of the report report                                   Share status
                                                             (%)                                 d           shares
                                                                       period                                                                  nt
                                                                                    period
                                                                                              shares
                                          DomesticYANTAI CHANGYU GROUP CO.
                                          non-state-owned 50.40% 345,473,856 0                         0   345,473,856                    -         0LTD.
                                          legal person
                                          Foreign
    GAOLING FUND,L.P.                                             3.53% 24,176,997 0                       0    24,176,997                              0
                                          shareholder
                                          Foreign
    GIC PRIVATE LIMITED                                           2.69% 18,456,155 -764,818                0    18,456,155                              0
                                          shareholder
    BBH BOS S/A FIDELITY FD -                 Foreign
                                                              2.35% 16,106,326 0                       0    16,106,326                              0
    CHINA FOCUS FD                            shareholder
    GSIC A/C MONETARY                         Foreign
                                                              0.89%     6,085,399 -16,541              0      6,085,399                             0
    AUTHORITY OF SINGAPORE                    shareholderBBH A/C VANGUARD EMERGING Foreign
                          shareholder                         0.68%     4,651,666 -55,400              0      4,651,666                             0MARKETS STOCK INDEX FUND
    BBH S/A FIDELITY FUNDS                    Foreign
                                                              0.63%     4,306,656 -284,826             0      4,306,656                             0
    SICAV-HEALTH CARE                         shareholder
    VALUE PARTNERS                            Foreign
                                                              0.62%     4,280,146 -1,686,735           0      4,280,146                             0HIGH-DIVIDEND STOCKS FUNDS shareholder
                                          Foreign
    NORGES BANK                                                   0.61%     4,171,564 2,483,576            0      4,171,564                             0
                                          shareholder
    FIDELITY CHINA SPECIAL                    Foreign
                                                              0.55%     3,779,202 0                    0      3,779,202                             0
    SITUATIONS PLC                            shareholderStrategic investors or legal result of the placement of
                                                           Nonew shares to become a top 10 shareholders
                                                           Among the top 10 shareholders, Yantai Changyu Group Company Limited has noThe explanation for the associated relationship and
                                                           associated relationship or accordant action relationship with the other 9 listedaccordant action of the top 10 shareholders
                                                           shareholders, and the relationship among the other shareholders is unknown.
                                                The top 10 shareholders with unrestricted shares
                                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                                                                                         Number of                    Type of share
                                                                                         unrestricted
                               Name of Shareholders                                    shares held until
                                                                                                             Type of share       Amount
                                                                                        the end of the
                                                                                        report period
    YANTAI CHANGYU GROUP CO., LTD.                                                         345,473,856         A share           345,473,856
    GAOLING FUND,L.P.                                                                      24,176,997          B share           24,176,997
    GIC PRIVATE LIMITED                                                                    18,456,155          B share           18,456,155
    BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                               16,106,326          B share           16,106,326
    GSIC A/C MONETARY AUTHORITY OF SINGAPORE                                               6,085,399           B share           6,085,399
    BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND                                     4,651,666           B share           4,651,666
    BBH S/A FIDELITY FUNDS SICAV-HEALTH CARE                                               4,306,656           B share           4,306,656
    VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS                                              4,280,146           B share           4,280,146
    NORGES BANK                                                                            4,171,564           B share           4,171,564
    FIDELITY CHINA SPECIAL SITUATIONS PLC                                                  3,779,202           B share           3,779,202
                                                                                       Among the top 10 shareholders, Yantai ChangyuThe explanation for the associated relationship and accordant action of the top 10
                                                                                       Group Company Limited has no associatedshareholders with unrestricted shares, the the associated relationship and accordant
                                                                                       relationship or accordant action relationship with theaction between the top 10 shareholders with unrestricted shares and the top 10
                                                                                       other 9 listed shareholders, and the relationshipshareholders
                                                                                       among the other shareholders is unknown.
    Explanation for the Top 10 shareholders who involved in financing activities and       The top 10 Shareholders is not involved in financing
    stock trading business                                                                 activities and stock trading business.Whether or not to be agreed to buy back trading by Company shareholders during the report period□ Yes √ NoThere is no agreed to buy back trading by Company shareholders during the report period.3. Controlling shareholder or changes of the actual controllers situationChanges of the controlling shareholder during the report period
    □ available    √ not availableThere is no any change of the controlling shareholder during the report period.Changes of the actual controllers during the report period
    □ available    √ not availableThere is no any Change of the actual controllers during the report period
                                               Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report4. Company’s shareholders and Consistent behavior person offer or carry out the plan ofincreasing rights issue during the period.
    □ available   √ not availableIn the context of Company known, Companys shareholders and Consistent behavior person did notoffer or carry out the plan of increasing rights issue during the period.
                                                 Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual Report
                  VII Relative situation for preferred Shares1. Issue and listing situation for preferred shares during the report period.
    □ available    √ not available2. Situation for number and share holding of preferred shares shareholders
    □ available    √ not available3. Situation for buy-back or conversion of preferred shares1)、Situation for preferred shares buy-back
    □ available     √ not available2)、Situation for preferred shares conversion
    □ available     √ not available4. Situation for recovering and performing of preferred shares voting right
    □ available    √ not available5. Accounting policy adopted in preferred shares and justification
    □ available    √ not available
                                                              Yantai Changyu Pioneer Wine Co. Ltd. 2014 Semi-annual ReportVIII、Situation for Directors, Supervisors, Senior Management1. Changes in shareholdings of directors, supervisors and senior management
    □ available     √ not availableThere are no any change in shareholdings of directors, supervisors and senior management duringthe report period, details see 2013 annual report2. Personnel changes in Company's directors, supervisors and senior management
    √available          □not available
              Name                         Post               Type             Date                      Reason
    Jean Paul Pinard                Director               Leave his
                                                                      2014.05.23             Work changes
                                                       post
                                Director
                                                                                             Elected by the shareholders
    Dai Hui                                                Appointment 2014.05.23
                                                                                             meeting of 2013
                                Independent Director                                         Elected by the shareholders
    Wang Zhuquan                                           Appointment 2014.05.23
                                                                                             meeting of 2013
                                     Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                               IX、Financial Report1. Audit reportWhether the biannual report has been audited□ Yes √ No2. Financial statementThe unit in the statement of the financial annotations is RMB Yuan.2.1 Consolidated balance sheetCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                Unit: Yuan
                                       Item                                   Note   Ending balance     Beginning balanceCurrent assets:
    Monetary fund                                                                7.1        1,861,541,927         1,367,818,182Settlement provisionsLendingTrading financial assets
    Bills receivable                                                             7.2          270,389,669            79,702,753
    Accounts receivables                                                         7.4          125,882,945           177,109,516
    Advances to suppliers                                                        7.6           12,631,073            45,997,863Premium receivableReinsurance accounts receivableReceivable reserves for reinsurance contract
    Interest receivable                                                          7.3            6,478,263             8,417,995Dividends receivable
    Other receivables                                                            7.5           94,629,107            99,331,794Buy-in/sell-out financial assets
    Inventories                                                                  7.7        1,763,353,132         2,121,117,437Non-current asset expire in a yearOther current assets
    Total current assets                                                                    4,134,906,116         3,899,495,540Non-current assets:
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                        Item                                   Note   Ending balance     Beginning balanceOffering loans and imprestAvailable for sale financial assetsHeld-to-maturity investmentLong-term receivables
    Long-term equity investments                                                  7.8Investment real estate
    Property, plant and equipment                                                 7.9        1,983,240,508         1,917,641,344
    Construction in progress                                                      7.10       1,688,554,603         1,423,654,530
    Construction materials                                                                                               676,539Fixed assets disposal
    Biological assets                                                             7.11         123,118,338           101,794,515Oil and gas assets
    Intangible assets                                                             7.12         299,188,896           296,129,754Development expenditure
    Goodwill                                                                      7.13          13,112,525            13,112,525
    Long-term prepaid expense                                                     7.14         176,253,868           165,521,803
    Deferred tax assets                                                           7.15         170,919,442           158,533,090
    Other non-current assets                                                      7.17          24,719,428            24,972,804
    Total non-current assets                                                                 4,479,107,608         4,102,036,904
    Total assets                                                                             8,614,013,724         8,001,532,444Current liabilities:
    Short-term loan                                                               7.18         243,170,674           243,170,674Borrowings from the Central BankCustomer and interbank depositsBorrowing fundsTrading of financial liabilities
    Bills payable                                                                 7.19           1,670,000             5,765,694
    Accounts payables                                                             7.20         260,590,660           258,116,331
    Advances from customers                                                       7.21         297,711,405           188,651,254Sales/buyback financial assetsPayable handling fees and commission
    Employee benefits                                                             7.22         131,853,776           134,322,137
    Taxes payable                                                                 7.23          63,377,377           194,413,430
    Interest payable                                                              7.24           4,279,802             2,152,059
                                     Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                         Item                                 Note   Ending balance     Beginning balanceDividends payable
    Other payables                                                               7.25         502,406,987           497,301,630Dividend payable for reinsuranceReserves for insurance contractsActing trading securitiesActing underwriting securitiesNon-current liability expire in a year
    Other current liabilities                                                    7.26          12,545,801            12,915,801
    Total current liabilities                                                               1,517,606,482         1,536,809,010Non-current liabilities:Long-term borrowingsBonds payableLong-term accounts payableSpecial accounts payableEstimated liabilities
    Deferred tax liabilities                                                     7.14           5,336,115             5,336,115
    Other non-current liabilities                                                7.27          82,278,935            88,366,835
    Total non-current liabilities                                                              87,615,050            93,702,950
    Total liabilities                                                                       1,605,221,532         1,630,511,960Owner’s equity (or shareholders’ equity):
    Paid-in capital (or capital stock)                                           7.28         685,464,000           685,464,000
    Capital surplus                                                              7.29         563,139,042           563,139,042Minus: treasury stockSpecial reserves
    Surplus reserve                                                              7.30         342,732,000           342,732,000General risk preparation
    Retained earnings                                                            7.31       5,254,985,974         4,616,944,663
    Converted difference in foreign currency statements                                          -269,603
    Total owners equity attributable to the parent company                                  6,846,051,413         6,208,279,705
    Minority interests                                                                        162,740,779           162,740,779
    Total owners equities (or shareholders equities)                                        7,008,792,192         6,371,020,484
    Total liabilities and owners equities (or shareholders equities)                        8,614,013,724         8,001,532,444
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
    The Legal Representative: Sun Liqiang         Accounting Supervisor: Leng Bin    Accounting Department Manager: Jiang Jianxun2.2 Balance sheet of the parent companyCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                     Unit: Yuan
                                       Item                                     Note     Ending balance     Beginning balanceCurrent assets:
    Monetary fund                                                                                 850,751,619           602,444,243Trading financial assets
    Bills receivable                                                                              150,131,330            32,594,381
    Accounts receivables                                                            15.1                                   1,600,968
    Advances to suppliers                                                                           2,418,842            24,824,672
    Interest receivable                                                                             6,478,263              8,417,995
    Dividends receivable                                                                          752,595,884           752,595,884
    Other receivables                                                               15.2        3,374,503,872          3,709,583,949
    Inventories                                                                                   681,914,073           781,284,189Non-current asset expire in a yearOther current assets
    Total current assets                                                                        5,818,793,883          5,913,346,281Non-current assets:Available for sale financial assetsHeld-to-maturity investmentLong-term receivables
    Long-term equity investments                                                    15.3        1,048,208,923          1,048,208,923Investment real estate
    Property, plant and equipment                                                                 416,731,108           425,294,116
    Construction in progress                                                                          650,821               269,802Construction materialsFixed assets disposal
    Biological assets                                                                              75,047,957            60,851,409Oil and gas assets
    Intangible assets                                                                              77,953,293            79,139,831Development expenditureGoodwillLong-term prepaid expense
    Deferred tax assets                                                                            18,394,100            22,956,747
    Other non-current assets                                                                        2,464,762              2,616,525
    Total non-current assets                                                                    1,639,450,964          1,639,337,353
                                     Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                         Item                                Note    Ending balance      Beginning balance
    Total assets                                                                            7,458,244,847          7,552,683,634Current liabilities:
    Short-term loan                                                                           243,170,674           243,170,674Trading of financial liabilitiesBills payable
    Accounts payables                                                                         155,823,881           166,453,563Advances from customers
    Employee benefits                                                                          82,441,312             69,032,912
    Taxes payable                                                                               -2,740,970            37,578,670
    Interest payable                                                                            4,279,802              2,152,059Dividends payable
    Other payables                                                                           1,481,112,201         1,612,596,521Non-current liability expire in a year
    Other current liabilities                                                                   2,559,227              2,559,227
    Total current liabilities                                                               1,966,646,127          2,133,543,626Non-current liabilities:Long-term borrowingsBonds payableLong-term accounts payableSpecial accounts payableEstimated liabilitiesDeferred tax liabilities
    Other non-current liabilities                                                              20,995,849             22,275,462
    Total non-current liabilities                                                              20,995,849             22,275,462
    Total liabilities                                                                       1,987,641,976          2,155,819,088Owner’s equity (or shareholders’ equity):
    Paid-in capital (or capital stock)                                                        685,464,000           685,464,000
    Capital surplus                                                                           557,222,454           557,222,454Minus: treasury stockAppropriative reserve
    Surplus reserve                                                                           342,732,000           342,732,000General risk preparation
    Retained earnings                                                                       3,885,184,417          3,811,446,092Converted difference in foreign currency statements
    Total owners equities (or shareholders equities)                                        5,470,602,871          5,396,864,546
    Total liabilities and owners equities (or shareholders equities)                        7,458,244,847          7,552,683,634
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
    The Legal Representative: Sun Liqiang          Accounting Supervisor: Leng Bin    Accounting Department Manager: Jiang Jianxun2.3 Consolidated profit statementCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                       Unit: Yuan
                                           Item                                     Note Sum of current period Sum of prior period
    1. Revenue                                                                                       2,301,990,248      2,539,378,234
    Including: Operating income                                                         7.32         2,301,990,248      2,539,378,234
            Interest income
            Earned premium
            Handling fees and commission income
    2. Total operating costs                                                                         1,462,946,341      1,558,864,572
    Including: Operating costs                                                     7.32          754,302,386         759,692,089
             Interest expenditure
             Handling fees and commission expenditure
             Premium rebate
             Net amount of indemnity expenditure
             Net amount of insurance contract reserve fund withdrawal
             Policy bonus payment
             Amortized reinsurance expenditures
             Taxes and surcharges                                                   7.33          132,436,813         123,601,977
             Selling expenses                                                       7.34          486,481,030         584,280,630
             Administrative expenses                                                7.35          103,980,497         104,896,929
             Financial expenses                                                     7.36           -14,254,385         -13,607,053
             Loss for impairment of assets
    Plus: Fair value charge profit (loss is listed with "-")
          Investment profit (loss is listed with "-")
          Including: investment profit for joint-run business and joint venture
          Exchange income (loss is listed with "-")
    3. Operating profit (loss is listed with "-")                                                     839,043,907         980,513,662
    Plus: Non-operating income                                                     7.37             9,444,796          5,675,494
    Minus: Non-operating expenses                                                  7.38              205,516           1,139,419
             Including: Losses on disposal of non-current assets                                        10,897            392,956
    4. Total profits (total loss is listed with "-")                                                  848,283,187         985,049,737
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
    Minus: Income taxes                                                               7.39            210,241,876           244,475,516
    5. Net profit (net loss is listed with "-")                                                            638,041,311           740,574,221
    Including: Realized net profit of the consolidated party before consolidation
    Attributable to equity holders of the company                                                     638,041,311           740,574,221
    Minority interests
    6. Earnings per share                                                                                  --                     --
    (1) Basic earnings per share                                                           7.40                      0.93                   1.08
    (2) Diluted earnings per share                                                         7.40                      0.93                   1.08
    7. Other Comprehensive Income                                                          7.41                  -269,603
    8. Comprehensive Income                                                                                637,771,708           740,574,221
    (1) Attributable to equity holders of the company                                                      637,771,708           740,574,221(2) Attributable to minority interests
    The Legal Representative: Sun Liqiang         Accounting Supervisor: Leng Bin        Accounting Department Manager: Jiang JianxunNotes: Financial expenses concerning financial services shall be separately listed with exchange gains item.2.4 Profit statement of the parent companyCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                              Unit: Yuan
                                 Item                                   Note         Sum of current period        Sum of prior period
    1. Revenue                                                          15.4                      689,897,279                    715,083,136
    Minus: Operating costs                                              15.4                      565,744,989                    585,109,268
    Taxes and surcharges                                                                           75,738,343                     61,432,785Selling expenses
    Administrative expenses                                                                        49,958,367                     59,247,136
    Financial expenses                                                                             -10,409,383                   -13,193,582Loss for impairment of assetsPlus: Fair value charge profit (loss is listed with "-")
    Investment profit (loss is listed with "-")                         15.5                       65,474,283                     11,140,442Including: Investment profit for joint-run business and jointventure
    2. Operating profit (loss is listed with "-")                                                  74,339,246                     33,627,971
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
    Plus: Non-operating income                                                                      2,153,759                    1,104,393
    Minus: Non-operating expenses                                                                                                     86,189Including: losses on disposal of non-current assets
    3. Total profits (total loss is listed with "-")                                             76,493,005                     34,646,175
    Minus: Income tax                                                                               2,754,680                    5,741,996
    4. Net profit (net loss is listed with "-")                                                  73,738,325                     28,904,179
    5. Earnings per share                                                                      --                          --
    (1) Basic earnings per share                                                                         0.11                           0.04
    (2) Diluted earnings per share                                                                       0.11                           0.046. Comprehensive Income
    7. Total comprehensive Income                                                                73,738,325                     28,904,179
    The Legal Representative: Sun Liqiang          Accounting Supervisor: Leng Bin    Accounting Department Manager: Jiang Jianxun2.5 Consolidated statement of cash flowCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                            Unit: Yuan
                                   Item                                    Sum of current period            Sum of prior period1. Cash flows from operating activities:
    Cash received from sales of goods and rending of services                             2,562,811,996                   2,594,618,747Net increase in customer and interbank depositsNet increase in borrowings from central bankNet increase in borrowings from other financial institutionsCash received from receiving insurance premium of originalinsurance contractNet cash received from reinsurance businessNet increase in policy holder deposits and investment fundsNet increase in dealing with trading financial assetsCash received from collecting interest, handling fees andcommissionNet increase in borrowingsNet increase in repurchasement business funds
                                    Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                Item                                 Sum of current period         Sum of prior period
    Tax refund received                                                                                             17,998,725
    Other cash received related to operating activities                                 8,348,936                   45,571,455
    Subtotal of cash flows of operating activities                                  2,571,160,932                2,658,188,927
    Cash paid for goods and services                                                  386,315,147                  593,465,656Net increase in customer loans and advancesNet increase in deposits in central bank and interbank depositsCash paid to original insurance contract paymentsCash paid to interest, handling fees and commissionCash paid to policy bonus
    Cash paid to and on behalf of employees                                           177,188,827                  224,792,482
    Cash paid for taxes and expenses                                                  784,526,070                  979,129,937
    Other cash paid related to operating activities                                                                451,642,363
                                                                                  333,455,757
    Sub-total of cash outflows of operating activities                                                           2,249,030,438
                                                                                1,681,485,801
    Net cash flow from operating activities                                                                        409,158,489
                                                                                  889,675,1312. Cash flow from investing activities:Cash received from return of investment
    Fixed deposit with the term of over 3 months                                      218,392,728                  457,524,719
    Cash received from obtaining investment profit                                      6,572,323                     7,651,150Cash received from disposal of fixed assets, intangible assets and
                                                                                             100                         4,000other long-term assetsNet cash received from disposal of branch and other business unitOther cash received related to investing activities
    Subtotal of cash flows of investment activities                                   224,965,151                  465,179,869Cash paid to acquire fixed assets, intangible assets and other
                                                                                  398,392,132                  417,217,901long-term assetsCash for investment
    Cash paid to buy fixed deposit with the term of over 3 months                      67,547,483                  550,392,728Net increase in hypothecated loanNet cash paid to acquire branch and other business unitOther cash paid related to investment activities
    Subtotal of cash outflows of investment activities                                465,939,615                  967,610,629
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                 Item                                   Sum of current period        Sum of prior period
    Net cash flow from investing activities                                             -240,974,464                -502,430,7603. Cash flow from financing activitiesCash received from acquiring investmentIncluding: cash received from acquiring minority shareholdersinvestment by branchCash received from acquiring loansCash received from issuing bondsOther cash received related to financing activitiesSubtotal cash flows of financing activitiesCash paid to pay debtsCash paid to distribute dividend, profit or pay interestIncluding: dividend and profit paid to minority shareholders bybranchOther cash paid related to financing activitiesSubtotal of cash outflows of financing activitiesNet cash flow from financing activities4. Influences of exchange rate fluctuation on cash and cash
                                                                                         -37,956equivalents
    5. Net Increase in cash and cash equivalents                                         648,662,711                  -93,272,271Plus: balance at the beginning of the period of cash and cash
                                                                                     956,558,932               1,562,294,026equivalents
    6. Balance at the end of the period of cash and cash equivalents                   1,605,221,643               1,469,021,755
    The Legal Representative: Sun Liqiang       Accounting Supervisor: Leng Bin    Accounting Department Manager: Jiang Jianxun2.6 Statement of cash flow of the parent companyCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                   Unit: Yuan
                               Item                                   Sum of current period          Sum of prior period1. Cash flows from operating activities:
    Cash received from sales of goods and rending of services                            457,521,916                 653,588,149
    Tax refund received                                                                                                 6,272,432
                                     Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                              Item                                  Sum of current period          Sum of prior period
    Other cash received related to operating activities                                169,506,621                 393,008,207
    Subtotal of cash flows of operating activities                                     627,028,537               1,052,868,788
    Cash paid for goods and services                                                   200,573,384                 310,853,962
    Cash paid to and on behalf of employees                                             57,999,162                  61,492,292
    Cash paid for taxes and expenses                                                   150,308,754                 174,337,248
    Other cash paid related to operating activities                                     16,542,221                  27,978,590
    Sub-total of cash outflows of operating activities                                 425,423,521                 574,662,092
    Net cash flow from operating activities                                            201,605,016                 478,206,6962. Cash flow from investing activities:Cash received from return of investment
    Fixed deposit with the term of over 3 months                                       218,392,728                 457,524,719
    Cash received from obtaining investment profit                                      72,046,606                  51,330,749Net cash received from disposal of fixed assets, intangible
                                                                                                                         4,000assets and other long-term assetsNet cash received from disposal of branch and other businessunitOther cash received related to investing activities
    Subtotal of cash flows of investment activities                                    290,439,334                 508,859,468Cash paid to acquire fixed assets, intangible assets and other
                                                                                    25,546,521                  36,895,124long-term assets
    Cash for investment                                                                                               3,700,000
    Cash paid to buy fixed deposit with the term of over 3 months                       44,547,483                 538,392,728Net cash paid to acquire branch and other business unitOther cash paid related to investment activities
    Subtotal of cash outflows of investment activities                                  70,094,004                 578,987,852
                                      Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                               Item                                   Sum of current period          Sum of prior period
    Net cash flow from investing activities                                              220,345,330                  -70,128,3843. Cash flow from financing activitiesCash received from acquiring investmentCash received from acquiring loansCash received from issuing bondsOther cash received related to financing activitiesSubtotal cash flows of financing activitiesCash paid to pay debtsCash paid to distribute dividend, profit or pay interestOther cash paid related to financing activitiesSubtotal of cash outflows of financing activitiesNet cash flow from financing activities4. Influences of exchange rate fluctuation on cash and cashequivalents
    5. Net Increase in cash and cash equivalents                                         421,950,346                 408,078,312Plus: balance at the beginning of the period of cash and cash
                                                                                     197,150,989                 425,084,049equivalents6. Balance at the end of the period of cash and cash
                                                                                     619,101,335                 833,162,361equivalents
    The Legal Representative: Sun Liqiang       Accounting Supervisor: Leng Bin    Accounting Department Manager: Jiang Jianxun
                                                                                          Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.2.7 Consolidated owner’s equity changing list
                                                                                                                                                                          Unit: Yuan
                                                                                                   Sum of current period
                                                                         Shareholders equity of parent company
                  Item
                                                                         Minus:                                                                         Minority           Total
                                       Paid-in capital (or    Capital               Special    Surplus      General risk   Undistributed
                                                                        Treasury                                                            Others    stockholders     shareholders
                                         capital stock)      reserves              reserves    reserves     preparation      profits
                                                                         stock                                                                            equity          equity
    1. Balance at the end of last year           685,464,000 563,139,042                          342,732,000                  4,616,944,663                 162,740,779    6,371,020,484Plus: Accounting policies changingPrevious error correctionOthers2. Balance at the beginning of this
                                             685,464,000 563,139,042                          342,732,000                  4,616,944,663                 162,740,779    6,371,020,484year3. Increasing or reducing amount of
    this year (reducing amount is listed                                                                                         638,041,311 -269,603                        637,771,708with "-")
    3.1 Net profits                                                                                                              638,041,311                                 638,041,311
    3.2 Other Comprehensive Income                                                                                                             -269,603                          -269,603
    Subtotal of above 3.1 and 3.2                                                                                                638,041,311 -269,603                        637,771,7083.3 Owners' invested and reducedcapital3.3.1 Owners' invested capital3.3.2 Amount of shares paid andreckoned in owners' equity3.3.3 Others3.4 Profit distribution3.4.1 Drew surplus reserves3.4.2 Drew general risk preparation3.4.3 Distribution to owners (orshareholders)3.4.4 Others3.5 Internal transfer of owners'equity
                                                                                                Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                          Sum of current period
                                                                              Shareholders equity of parent company
                 Item                                                         Minus:                                                                             Minority           Total
                                        Paid-in capital (or     Capital                   Special     Surplus       General risk    Undistributed
                                                                             Treasury                                                                 Others   stockholders     shareholders
                                          capital stock)       reserves                  reserves     reserves      preparation       profits
                                                                              stock                                                                                equity          equity3.5.1 Capital reserves transferredand increased capital (or capitalstock)3.5.2 Surplus reserves transferredand increased capital (or capitalstock)
    3.5.3 Surplus     reserves   coveringdeficit3.5.4 Others3.6 Special reserves3.6.1 Withdrawal of this period3.6.2 Usage of this period3.7 Others
    4. Banlance at the end of this period         685,464,000 563,139,042                                342,732,000                    5,254,985,974 -269,603        162,740,779    7,008,792,192
                                                                                                                                                                                    Unit: Yuan
                                                                                                          Sum of current period
                                                                               Shareholders equity of parent company
                 Item
                                                                               Minus:                                                                            Minority           Total
                                         Paid-in capital (or     Capital                  Special      Surplus       General risk    Undistributed
                                                                              Treasury                                                             Others      stockholders     shareholders
                                           capital stock)       reserves                  reserves     reserves      preparation       profits
                                                                               stock                                                                               equity          equity
    1. Balance at the end of last year             685,464,000 562,139,042                                342,732,000                     4,322,769,136               146,381,009    6,059,485,187Plus: Accounting policies changingPrevious error correctionOthers2. Balance at the beginning of this
                                               685,464,000 562,139,042                                342,732,000                     4,322,769,136               146,381,009    6,059,485,187year3. Increasing or reducing amount of
    this year (reducing amount is listed                             1,000,000                                                              294,175,527                16,359,770      311,535,297with "-")
                                                                                             Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                       Sum of current period
                                                                             Shareholders equity of parent company
                  Item                                                        Minus:                                                                     Minority           Total
                                           Paid-in capital (or    Capital               Special     Surplus      General risk   Undistributed
                                                                             Treasury                                                         Others   stockholders     shareholders
                                             capital stock)      reserves               reserves    reserves     preparation      profits
                                                                              stock                                                                        equity          equity
    3.1 Net profits                                                                                                                 1,048,185,927                            1,048,185,9273.2 Other Comprehensive Income
    Subtotal of above 3.1 and 3.2                                                                                                   1,048,185,927                            1,048,185,9273.3 Owners' invested and reduced
                                                                 1,000,000                                                                                 16,359,770       17,359,770capital
    3.3.1 Owners' invested capital                                                                                                                             16,359,770       16,359,7703.3.2 Amount of shares paid andreckoned in owners' equity
    3.3.3 Others                                                     1,000,000                                                                                                   1,000,000
    3.4 Profit distribution                                                                                                          -754,010,400                             -754,010,4003.4.1 Drew surplus reserves3.4.2 Drew general risk preparation3.4.3 Distribution to owners (or
                                                                                                                                 -754,010,400                             -754,010,400shareholders)3.4.4 Others3.5 Internal transfer of owners' equity3.5.1 Capital reserves transferred andincreased capital (or capital stock)3.5.2 Surplus reserves transferred andincreased capital (or capital stock)
    3.5.3 Surplus      reserves     coveringdeficit3.5.4 Others3.6 Special reserves3.6.1 Withdrawal of this period3.6.2 Usage of this period3.7 Others
    4. Banlance at the end of this period            685,464,000 563,139,042                           342,732,000                  4,616,944,663             162,740,779    6,371,020,484
                                                                                           Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.2.8 Owner’s equity changing list of the parent company
                                                                                                                                                                              Unit: Yuan
                                                                                                              Sum of current period
                          Item                     Paid-in capital (or                        Minus:                                          General risk   Undistributed      Total owners
                                                                          Capital reserves                Special reserves Surplus reserves
                                                     capital stock)                        Treasury stock                                     preparation      profits             equity
    1. Balance at the end of last year                          685,464,000      557,222,454                                       342,732,000                    3,811,446,092       5,396,864,546Plus: Accounting policies changingPrevious error correctionOthers
    2. Balance at the beginning of this year                    685,464,000      557,222,454                                       342,732,000                    3,811,446,092       5,396,864,5463. Increasing or reducing amount of this period
                                                                                                                                                                 73,738,325          73,738,325(reducing amount is listed with "-")
    3.1 Net profits                                                                                                                                                  73,738,325          73,738,3253.2 Other Comprehensive Income
    Subtotal of above 3.1 and 3.2                                                                                                                                    73,738,325          73,738,3253.3 Owners' invested and reduced capital3.3.1 Owners' invested capital3.3.2 Amount of shares paid and reckoned inowners' equity3.3.3 Others3.4 Profit distribution3.4.1 Drew surplus reserves3.4.2 Drew general risk preparation3.4.3 Distribution to owners (or shareholders)3.4.4 Others3.5 Internal transfer of owners' equity3.5.1 Capital reserves transferred and increasedcapital (or capital stock)3.5.2 Surplus reserves transferred and increasedcapital (or capital stock)3.5.3 Surplus reserves covering deficit3.5.4 Others
                                                                                              Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.3.6 Special reserves3.6.1 Withdrawal of this period3.6.2 Usage of this period3.7 Others
    4. Banlance at the end of this period                             685,464,000   557,222,454                                       342,732,000                    3,885,184,417       5,470,602,871
                                                                                                                                                                                 Unit: Yuan
                                                                                                                Sum of prior period
                       Item                       Paid-in capital (or capital    Capital         Minus:                                          General risk   Undistributed      Total owners
                                                                                                             Special reserves Surplus reserves
                                                            stock)              reserves      Treasury stock                                     preparation      profits             equity
    1. Balance at the end of last year                                685,464,000   557,222,454                                       342,732,000                    3,410,769,214       4,996,187,668Plus: Accounting policies changingPrevious error correctionOthers
    2. Balance at the beginning of this year                          685,464,000   557,222,454                                       342,732,000                    3,410,769,214       4,996,187,6683. Increasing or reducing amount of this
                                                                                                                                                                   400,676,878         400,676,878period (reducing amount is listed with "-")
    3.1 Net profits                                                                                                                                                  1,154,687,278       1,154,687,2783.2 Other Comprehensive Income
    Subtotal of above 3.1 and 3.2                                                                                                                                    1,154,687,278       1,154,687,2783.3 Owners' invested and reduced capital3.3.1 Owners' invested capital3.3.2 Amount of shares paid and reckoned inowners' equity3.3.3 Others
    3.4 Profit distribution                                                                                                                                           -754,010,400        -754,010,4003.4.1 Drew surplus reserves3.4.2 Drew general risk preparation
    3.4.3 Distribution to owners (or shareholders)                                                                                                                    -754,010,400        -754,010,4003.4.4 Others3.5 Internal transfer of owners' equity
    3.5.1    Capital   reserves   transferred   and
                                                                            Full Text of 2014 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.increased capital (or capital stock)
    3.5.2 Surplus reserves transferred        andincreased capital (or capital stock)3.5.3 Surplus reserves covering deficit3.5.4 Others3.6 Special reserves3.6.1 Withdrawal of this period3.6.2 Usage of this period3.7 Others
    4. Banlance at the end of this period           685,464,000   557,222,454                                    342,732,000                   3,811,446,092    5,396,864,546
                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.3. Basic information of this company
    Yantai Changyu Pioneer Wine Co., Ltd. (the “Company”) was incorporated as a joint stock limited
    company in accordance with the Company Law of the Peoples Republic of China (the “PRC”) in a
    reorganization carried out by Yantai Changyu Group Co., Ltd. (“Changyu Group Company”), in which
    Changyu Group Company injected certain assets and liabilities in relation to the brandy, wine, sparkling
    wine, and tonic wine production and sales businesses to the Company. The Company and its
    subsidiaries (the “Group”) are principally engaged in the production and sales of wine, brandy and
    champagne.
    Pursuant to the approval from the Government of Shandong Province (Luzheng [1997]119), the
    Company was reorganized as a joint stock limited company on April 10, 1997. On September 23, 1997,
    the Company was approved by China Securities Regulatory Commission (the “CSRC”) ([1997] No. 52)
    to issue 88,000,000 domestically listed foreign investment shares (“B shares”) on Shenzhen Stock
    Exchange. On September 18, 1997, the Company obtained the business license with the registered
    number No. 26718011-9.
    In October 2000, the Company was approved by CSRC Zheng Jian Zi [2000] No.148 to issue
    32,000,000 domestically listed Common Shares (“A Shares”). The A shares were listed on Shenzhen
    Stock Exchange on October 26, 2000.
    Pursuant to the share reform notices issued by the Company in February 2006, Changyu Group
    Company transferred its 13,977,600 shares to the shareholders of A share of the Company. After the
    reform, percentage of equity attributable to Changyu Group Company decreased from 53.8% to 50.4%.
    In June 2012, the Company gave additional 3 shares per 10 shares to all shareholders on the base
    number of total equity of 527,280,000 on December 31, 2011, totally increased capital stock of
    158,184,000 shares. By June 30, 2014, the Company issued capital stock totally of 685,464,000 shares
    accumulatively.
    The holding company of the Group is Changyu Group Company, which was ultimately controlled by
    Yantai Guofeng Investment Holding Company Limited, ILLVA Saronno Holding SPA, International
    Finance Corporation and Yaitai Yuhua Investment and Development Company Limited.4. Main accounting policies, accounting estimates and previous error4.1. Basis of preparation of financial statement
    The Group implements Chinese Accounting Standards (“CAS”) published by Ministry of Finance on
    February 15, 2006, guidelines and interpretations thereof and other regulations (generally called “Chinese
    Accounting Standards”). In addition, the Group also discloses relevant financial information in accordance
    with Information Disclosure and Preparation Rule for Enterprises Publically Issuing Securities No.15 ----
    General Rules for Financial Statement (Revised in 2010).
                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    Note-accounting Basis and Pricing Principle
    The note-accounting basis of financial accounting adopted by the Group is accrual system and the
    measurement basis adopted by the Group in preparing its financial statement is historical cost.
    Subsequently, if the assets are impaired, impairment provisions are made in accordance with the relevant
    accounting standards.4.2. Statement on compliance with CAS
    The financial statements prepared by the Company fulfill the requirement of CAS and give a true and fair
    view of the financial position and the consolidated financial position of the Company and of the Group as
    at June 30, 2014, and of the operating results and the consolidated operating results and cash flows and the
    consolidated cash flows for January-June 2014.4.3. Accounting year
    The accounting year of the Group is from January 1 to December 31.4.4. Reporting 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 reporting currency. The overseas subsidiary companies thereof determine Euro as the
    reporting currency according to the main economic environment in which they are situated. The Group
    presentation currency is RMB.4.5. Accounting treatment method for business combination under common control and
    non-common control4.5.1 Business combination under non-common control
    A business combination involving entities or businesses under non-common control is a business
    combination in which all of the combining entities or businesses are ultimately controlled by the different
    party or same parties before and after the business combination.
    The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed and the
    equity instruments issued by the acquirer in exchange for the control on the acquiree. The agency fees for
    audit, assessment and legal service, etc. incurred for the business combination and other relevant
    management fees paid by the acquirer shall be recorded into the current profit and loss statement. For a
    business combination under non-common control realized by two or more transactions of exchange, the
    combination cost shall be the summation of the consideration paid on the acquisition date and the fair
    value on the acquisition date of the stock rights of the acquiree held by the acquirer before the acquisition
    date. The stock rights of the acquiree held by the acquirer before the acquisition date shall be re-measured
    according to the fair value on the acquisition date, and the difference between the fair value and the book
    value thereof shall be recorded into current investment income. Where the stock rights of the acquiree
    held by the acquirer involves other comprehensive income, the relevant comprehensive income shall be
    transferred into current investment income of the acquisition date.
    The identifiable assets, liabilities and contingent liabilities which were obtained from the acquiree in the
    business combination and met the recognition conditions shall be measured on the acquisition date
                                            Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    according to the fair value thereof. If the combination cost is larger than the fair value of the identifiable
    net assets obtained from the acquiree, the difference shall be recognized as business goodwill and initially
    measured according to the cost thereof. If the combination cost is less than the fair value of the
    identifiable net assets obtained from the acquiree, the measurement of the combination cost and the fair
    value of the identifiable assets and liabilities and contingent liabilities obtained from the acquiree shall be
    rechecked firstly; after rechecking, if the combination cost is still less than the fair value of the
    identifiable net assets obtained from the acquiree, the difference shall be recorded into current profit and
    loss statement.
    The goodwill formed due to business combination shall be separately listed in the consolidated financial
    statement and measured on the basis of its costs minus the accumulative impairment provisions. The
    goodwill shall have at least one impairment test at the end of each year.
    The impairment test for the goodwill shall be combined with the relevant cash-generating units
    or groups of cash-generating units. In other words, the carrying amount of the goodwill acquired
    in the business combination shall be, from the acquisition date, reasonably allocated to each of
    the Group's cash-generating units, or groups of cash-generating units that are expected to benefit
    from the synergies of the combination. If the recoverable amount of cash-generating units or
    groups of cash-generating units of the allocated goodwill is less than the book value thereof, the
    corresponding impairment loss shall be recognized. The impairment losses shall be first deducted
    from the book value of the corporate assets and goodwill which have been allocated to the
    cash-generating unit or group of cash-generating units, and then deducted from the book value of
    the remaining assets pro rata with goodwill excluded from consideration.
    The recoverable amount is determined as the higher of the net amount of the fair value of assets minus the
    disposal expenses thereof and the present value of the estimated future cash flows of the assets. The fair
    value of the assets shall be determined according to the sales agreements price in the fair transaction; if
    there is sales agreement but an assets active market, the fair value thereof shall be determined in
    accordance with the acquirers offer; if there is no sales agreement or assets active market, the fair value
    thereof shall be determined on the basis of the available optimum information. Therein, the disposal
    expenses include legal fees, relevant taxes and dues and carriage expenses concerning the assets disposal
    as well as the direct expenses incurred for making the assets to be under marketability state. The present
    value of the estimated future cash flows of the assets shall be determined as the amount discounted at a
    proper discount rate according to the estimated future cash flows incurred during the sustained use and at
    the final disposal.
    The impairment loss of the goodwill shall be recorded into the current profit and loss statement and shall
    not be reserved in future accounting periods.4.6. Compiling methods of consolidated financial statements4.6.1Compiling methods of consolidated financial statements
    The consolidation scope of consolidated financial statements is determined on the basis of control.
    Control refers to the power that the Group can determine the financial and business policies of another
    enterprise and can gain profits from the business activities of the enterprise.
    As for the subsidiary companies disposed by the Group, the business results and the cash flows thereof
                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    before the disposal date (date of losing control power) shall have been properly included in the
    consolidated statement of income and the consolidated statement of cash flow.
    As for the subsidiary company obtained in a business combination under non-common control, the
    business results and the cash flows thereof since the acquisition date (date of obtaining control power)
    shall have been properly included in the consolidated statement of income and the consolidated statement
    of cash flow. The opening balance and the comparison value of the consolidated financial statements shall
    not be adjusted.
    The principal accounting policy and accounting period adopted by the subsidiary companies shall be
    determined in accordance with the accounting policy and accounting period uniformly regulated by the
    Company.
    All major accounts and transactions between the Company and the subsidiary companies as well as
    between subsidiary companies shall be neutralized at the time of combination.
    The shares in the owner's equity of the subsidiary companies, which do not belong to the parent company,
    shall be recognized as the minority equity and shall be listed under the item of “minority equity” of the
    owners equity in the balance sheet. The shares in the current profit and loss statement of the subsidiary
    companies, which belong to the minority equity, shall be listed under the item of “minority equity” of the
    net profits in the consolidated statement of income.
    If the loss of the subsidiary companies borne by minority shareholders exceeds the shares of the owner's
    equity entitled therein by the minority shareholders at the beginning of the period, the difference shall be
    still credited against the owner's equity.4.7. Recognition standards of cash and cash equivalents
    Cash comprises cash on hand and demand deposit of this Enterprise. Cash equivalents refers to short term
    highly liquid investments which are readily convertible into known amounts of cash and which are
    subject to an insignificant risk of changes in value.4.8. Foreign currency transactions and foreign currency statement translating
    4.8.1   Foreign currency transactions
    At the time of initial recognition of a foreign currency transaction, the amount of the foreign currency
    transaction shall be translated into the amount in the reporting currency at the spot exchange rate on the
    transaction date.
    The monetary items of the foreign currency transaction shall be translated into RMB at the spot change
    rate on the balance sheet date. The currency translation difference generated due to the difference between
    the spot change rate on the balance sheet date and the spot change rate at the initial recognition or on the
    previous balance sheet date shall be recorded into the current profit and loss statement, except: (1) the
    currency translation difference of the dedicated foreign currency loan that meets the capitalization
    condition shall be recorded into the assets cost as capitalization during the capitalization period; (2) the
    currency translation difference of the arbitrage tool for avoiding foreign exchange risk shall be treated
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    according to hedge accounting method; (3) the currency translation difference of the available-for-sale
    monetary items generated by the book value other than the amortized cost shall be recognized as other
    comprehensive income and shall be recorded into capital surplus and shall be recorded into the current
    profit and loss statement.
    The amount of the non-monetary items of the foreign currency transaction measured by historical cost
    shall be still translated into the amount in the reporting currency at the spot exchange rate on the
    transaction date. The non-monetary items of the foreign currency transaction measured by the fair value
    shall be translated at the spot exchange rate on the fair value date, and the difference between the amount
    in the reporting currency and the amount in original reporting currency shall be treated as the change of
    the fair value (including exchange rate movement) and shall be recorded into current profit and loss
    statement or recognized as other comprehensive income and recorded into capital surplus.
    4.8.2   Translation of Foreign Currency Financial Statement
    In order to compile consolidated financial statement, the foreign currency financial statement of overseas
    business shall be translated into RMB financial statement in accordance with the following methods: all
    asset and liability items in the balance sheets shall be translated at the spot exchange rate on the balance
    sheet date; the owner's equity items, except the ones as "undistributed profits", shall be translated at the
    spot exchange rate at the time when they occur; all items and the items reflecting the accrual profit
    distribution in the profit statement shall be translated at the spot exchange rate at the time when they
    occur; the undistributed profits at the beginning of the year shall be the translated undistributed profits at
    the end of the previous year; the undistributed profits at the end of the year shall be calculated and listed
    as the translated profit distribution items; the difference between the asset items, the liability items and
    the summation of the owner's equity items shall be separately listed under the owner's equity items in the
    balance sheet as the translation difference of the foreign currency financial statement.
    The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall be
    translated at the spot exchange rate at the time when they occur; the amount of the cash and cash
    equivalents impacted by the exchange rate movement shall be, as a reconciling item, separately listed
    under “impact of exchange rate movement on cash and cash equivalents” in the cash flow statement.
    The amount at the beginning of the year and the actual amount of the previous year shall be listed as the
    amount translated according to the financial statement of the previous year.4.9. Financial instruments
    When becoming a party to a financial instrument, the Group shall recognize a financial asset or financial
    liability. The financial assets and financial liabilities initially recognized shall be measured at their fair
    values. For the financial assets and liabilities measured at their fair values and of which the variation is
    recorded into the current profit and loss statement, the transaction expenses thereof shall be directly
    recorded into the current profit and loss statement; for other categories of financial assets and financial
    liabilities, relevant transaction expenses thereof shall be included into the initially recognized amount.4.9.1 Classification of financial assets
    Financial assets are classified into the following categories when they are initially recognized: the
                                            Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    financial assets which are measured at their fair values and the variation of which is recorded into the
    current profit and loss statement, the investments which will be held to their maturity, loans and account
    receivables and available-for-sale financial assets. The financial assets purchased and sold through
    common modes shall be recognized and terminated from recognition according to the accounting on the
    transaction date. The financial assets held by the Company are loans and account receivables.
    The financial instruments issued by the Group shall be recognized as financial liabilities or right
    instruments according to the essence of the financial instruments and the definition of the financial
    liabilities and the right instruments.
    Financial liabilities shall be classified into the following two categories when they are initially recognized:
    the financial liabilities which are measured at their fair values and of which the variation is recorded into
    the current profit and loss statement, and other financial liabilities. The financial liabilities assumed by the
    Group are other financial liabilities.
    4.9.2   Recognition reference and measurement methods of financial instruments
    Loans and account receivables
    Loans and account receivables refer to the non-derivative financial assets for which there is no quoted
    price in the active market and of which the repo amount is fixed or determinable. The financial assets
    classified by the Group as loans and account receivable include bill receivable, account receivable,
    interest receivable and other receivables.
    The loans and account receivables shall be subsequently measured at amortized cost by adopting effective
    interest rate method. The profits or losses that arise when such loans and account receivables are
    terminated from recognition, or are impaired or amortized, shall be recorded into the current profit and
    loss statement.
    Other financial liabilities
    Other financial liabilities are subsequently measured at amortized cost by adopting effective interest rate
    method, wherein the profits or losses that arise when such financial liabilities are terminated from
    recognition or are amortized, shall be recorded into the current profit and loss statement.
    4.9.3   Recognition reference and measurement methods for transfers of financial assets
    Where a financial asset satisfies any of the following conditions, it shall be terminated from recognition:
    (1) where the contractual rights for collecting the cash flow of the said financial asset are terminated; (2)
    where the said financial asset has been transferred and all the risks and rewards of the financial asset have
    been substantially transferred to the receiver; (3) where the financial asset has been transferred, although
    the Group does not transfer or retain almost all the risks and rewards of the financial asset, the Group still
    waives the control of the financial asset.
    Where the overall transfer of the financial asset satisfies the derecognition conditions, the difference
    between the book value of the transferred financial asset as well as the consideration received due to such
    transfer and the summation of the cumulative amount of the fair value of the asset that is originally
    recorded into other comprehensive income.
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    4.9.4   Conditions for terminated recognition of financial liabilities
    When the prevailing obligations of a financial liability are relieved in all or in part, the recognition of the
    financial liability shall be terminated in all or in part. Where the Group (debtor) enters into an agreement
    with a creditor so as to substitute the existing financial liabilities by way of any new financial liability,
    and if the contractual stipulations regarding the new financial liability is substantially different from that
    regarding the existing financial liability, the recognition of the existing financial liability shall be
    terminated, and at the same time the new financial liability shall be recognized.
    Where the recognition of a financial liability is totally or partially terminated, the difference between the
    book value which has been terminated from recognition and the considerations it has paid (including the
    non-cash assets it has transferred out and the new financial liabilities it has assumed) shall be included
    into the current profit and loss statement.
    4.9.5   Recognition methods of fair value of financial assets and financial liabilities
    "Fair value" refers to the amount, at which both parties to a transaction who are familiar with the
    condition exchange their assets or clear off their debts under fair conditions. The fair value of the
    financial instruments that are actively traded in organized financial markets is determined by reference to
    quoted market prices. For the financial instruments where there is no active market, the fair value thereof
    is determined using valuation techniques. Such techniques include using recent arms length market
    transactions; reference to the current market value of another instrument, which is substantially the same;
    a discounted cash flow analysis; option pricing models and other valuation models.
    4.9.6   Impairment test method and method for accruing impairment provision of financial
        assets (excluding accounts receivable)
    The Group assesses at each balance sheet date whether there is any objective evidence that a financial
    asset or a group of financial assets is impaired. Objective evidences refer to those occurred after the initial
    recognition, have effect on estimated future cash flows of the financial assets, and can be measured
    reliably.
    The objective evidences that can prove the impairment of a financial asset shall include:
    A serious financial difficulty occurs to the issuer or the debtor;
    The debtor breaches any of the contractual stipulations, such as, failure to pay or delay of the payment of
    interests or the principal;
    The Group makes any concession due to economic or legal factors, etc. to the debtor which is in financial
    difficulties;
    The debtor will probably become bankrupt or carry out other financial reorganizations;
    The financial assets can no longer continue to be traded in the active market due to serious financial
    difficulties of the issuer;
    It is impossible to identify whether the cash flow of a certain asset within a certain combination of
    financial assets has decreased or not. But after making an overall appraisal according to the public data
    available, it is found that the predicted future cash flow of the said combination of financial assets has
    indeed decreased since it was initially recognized and such decrease can be measured, including:
                                                 Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    The payment ability of the debtor of the said combination of financial assets worsens gradually;
    The country or economic region where the debtor is situated has the conditions that may cause the
    financial assets to be unpaid.
    Other objective evidences showing the impairment of the financial assets.
    Financial assets carried at amortized cost
    Where a financial asset measured at amortized cost is impaired, the book value of the said financial asset
    shall be written down to the current value of the predicted future cash flow determined according to the
    capitalization of original effective exchange rate (excluding the loss of future credits not yet occurred),
    and the amount as written down shall be recognized as loss of the impairment of the asset and shall be
    recorded into the current profit and loss statement. If there is any objective evidence proving that the
    value of the said financial asset has been restored, and it is objectively related to the events that occur
    after such loss is recognized, the impairment losses originally recognized shall be reversed. However, the
    reversed book value shall not be any more than the amortized costs of the said financial asset on the day
    of reverse under the assumption that no provision is made for the impairment.
    An impairment test shall be made by the Group independently on the individually significant financial
    assets; with regard to not individually significant financial assets, an independent impairment test may be
    carried out, or they may be included in a combination of financial assets with similar credit risk
    characteristics so as to carry out an impairment-related test. Where, upon independent test, the financial
    asset (including the individually significant financial assets and not individually significant financial
    assets) has not been impaired, it shall be included in a combination of financial assets with similar credit
    risk characteristics so as to conduct another impairment test. Assets that are individually assessed for
    impairment and for which an impairment loss is or continues to be recognized shall not be included in the
    combination of the financial assets with similar credit risk characteristics for impairment test.4.10. Recognition standards and accrual methods for bad account provision of accounts
    receivable4.10.1 Bad account provision of individually significant accounts receivable
                                                                 The account receivable with the amount above RMB
      Judgment reference or amount standard for individually
                                                                 3,000,000 shall be recognized by the Group as the
      significant accounts
                                                                 individually significant account receivable.
                                                                 An impairment test shall be made independently by
                                                                 the Group on the individually significant financial
                                                                 assets. Where, upon independent test, the financial
                                                                 asset has not been impaired, it shall be included in a
                                                                 combination of financial assets with similar risk
      Accruing method for individually significant accounts
                                                                 characteristics so as to conduct another impairment
      accrued for bad account provision individually
                                                                 test. The account receivables that are independently
                                                                 assessed for impairment and for which an impairment
                                                                 loss is or continues to be recognized shall not be
                                                                 included in the combination of account receivables
                                                                 with similar credit risk characteristics for impairment
                                                Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                 test.4.10.2 Individually insignificant accounts receivable accrued for bad account provisionindividually
                                             If there is objective evidence that this Group cant call back the accounts
      Reasons for accruing for bad account
                                             according to original articles, the individually insignificant accounts
      provision individually
                                             receivable can be accrued for bad account provision individually.
                                             The impairment losses are recognized according to the difference between
      Methods for accruing bad account
                                             the present value of future cash flow and the book value, and impairment
      provision
                                             provision is accrued.4.11. Inventories4.11.1 Classification of inventories
    Inventories of the Group comprise raw materials, goods in process, commodity stocks. The inventories
    are initially measured in cost. The cost of inventory consists of purchase costs, processing costs and other
    expenditures to make inventories reach current site and state.4.11.2 Pricing method for sending out inventories
    Weighted average method is used to determine the actual cost for sending out inventories when sending
    them out.
    The agricultural products after the harvest are handled in accordance with the CAS 1- Inventories.4.11.3 Recognition reference of the net realizable value of inventories and the method foraccruing inventory depreciation provision
    Inventories are stated at the lower of cost and net realizable value at the balance sheet date. If the net
    realizable value is lower than the cost of inventories, the provision for the loss on decline in value of
    inventories are made. The net realizable value refers to the amount: the estimated sale price of inventories
    deducting the estimated cost to happen till completion, the estimated selling expense and relevant taxes,
    in daily activities. Based on the acquired concrete evidence, the purpose for holding inventories and the
    impact of matters after balance sheet date shall be also considered during recognition of the net realizable
    value of inventories.
    The inventories are accrued inventories depreciation provision according to the difference of single
    inventory item and its net realizable value.
    After accruing inventories depreciation provision, if the previous influence factors writing down
    inventories value disappear resulting in the net realizable value of the inventories being higher than their
    book value, it shall be reversed from the originally accrued inventories depreciation provision amount and
    the reversed amount shall be included in the current profit and loss statement.4.11.4 Inventory system for the inventories
    Inventory system: Perpetual inventory system
                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.4.11.5 Amortization method of low-priced and easily-worn articles and packages
    Amortization method of packages and low-priced and easily-worn articles: One-off amortization method4.12 Long-term equity investments4.12.1 Recognition of initial investment cost
    For long-term equity investments acquired from business combination under non-common control, the
    combination cost is regarded as the investment cost of long-term equity investments. Where the business
    combination under non-common control is realized by steps through multiple transactions, the sum of the
    book value of the acquirees equity investment held before the acquisition date and the newly increased
    investment cost on the acquisition date shall be regarded as the investment cost of long-term equity
    investments. For equity investments other than long-term equity investments formed by business
    combination, initial measurement shall be carried out according to the costs.4.12.2 Subsequent measurement and recognition of loss and profit
    Long-term equity investments by which Group has no controls, has no joint control or significant
    influence to invested entities, has no quoted market price in an active market and the fair value cannot be
    reliably measured are measured on cost method basis; in addition, long-term equity investments to the
    subsidiary companies are measured on cost method basis by corporate financial statements. Subsidiary
    companies refer to the invested entities by which the company has control. When cost method is adopted,
    the long-term equity investments are measured at the initial investment cost, except that the initial
    investment cost contains declared but unissued cash dividends or profits. The current investment income
    is recognized according to the dividends or profits declared to distribute by the invested entities. During
    disposal of long-term equity investments, the difference between the book value and the actual price shall
    be included in the current profit and loss statement.4.12.3 Reference for recognizing common control and significant influence on invested unit
    Control refers to the right of deciding the financial and operating policies of an enterprise, and getting
    interests from the operating activities of such enterprise. Joint control refers to the mutual control to a
    certain economic activity according to contract agreement and exists only when the investing parties who
    need to share the control power agree unanimously for making important financial and operating
    decisions related to such economic activity. Significant influence refers to the right to take part in
    decision making of financial and operating policies of an enterprise, but cant control the formulation of
    such policies independently or with other parties. The current convertible corporate bonds, current
    executable warrants and other potential voting factors of the invested unit held by the investing
    enterprises and other parties shall be considered, during recognizing whether to implement control or
    exert significant influence on the invested units.4.12.4 Impairment test method and method for accruing impairment provision
    On each balance sheet date, the Group made assessment on whether or not there is any indication of
    potential impairment of long-term equity investment. If there is any evidence that indicates the possibility
    of asset impairment, the recoverable amount of the asset is estimated. If the recoverable amount of the
    asset is lower than the book value, asset impairment provision shall be accrued according to the difference
    and charged to the current profit and loss statement in the period. After the impairment loss of long-term
                                                   Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    equity investment has been recognized, it wont be reversed in future accounting periods.4.13 Fixed assets4.13.1 Recognition conditions of fixed assets
    Fixed assets refer to the tangible assets held for producing goods, rendering services, leasing or operation
    management, with useful life exceeding one accounting year. Fixed assets can only be confirmed that the
    economic benefits relating to the fixed assets are likely to flow into the Group, and the cost of the fixed
    assets can be measured reliably. Initial measurement for fixed assets shall be carried out according to the
    cost. For the subsequent expenses related to the fixed asset, if the economic benefits relating to the fixed
    asset are likely to flow into the Group and the cost thereby can be reliably measured, the subsequent
    expenses are included in fixed asset cost and the book value of the substituted part shall be terminated.
    Other subsequent expenses shall be included in the current profit and loss statement.4.13.2 Depreciation methods of kinds of fixed assets
    Depreciation is calculated on the fixed year average method basis within the useful life from the month
    following having been put into operation. The estimated useful life, residual value and annual
    depreciation rate are as follows:
       Classification      Estimated useful life      Estimated residual value      Annual depreciation rate
    Buildings                20-40 years                           0-5%              2.4%-5.0%
    Machinery               10-20 years                           0-5%              4.8%-10.0%
    Motor vehicles          4-12 years                            0-5%              7.9%-25.0%4.13.3 Impairment test method and method for accruing impairment provision of fixed assets
    On each balance sheet date, the Group made assessment on whether or not there is any indication of
    potential impairment of fixed assets. If there is any evidence that indicates the possibility of asset
    impairment, the recoverable amount of the asset is estimated. The estimated recoverable amount of an
    asset is based on an individual asset. If it is difficult to determine the recoverable amount individually, the
    recoverable amount is determined for the cash-generating unit to which the asset belongs. If the
    recoverable amount of the asset or cash-generating unit is less than its book value, the impairment
    provision of asset shall be accrued according to the difference and included in the current profit and loss
    statement.
    After a loss of asset impairment has been recognized, it is not be reversed in future accounting periods.4.13.4 Others
    The Group reviewed the useful life, expected net residual value, and the depreciation method of the fixed
    assets at least at the end of each year, and in case of any change, the change will be disposed as
    accounting estimate change.
    When the fixed assets are under disposal state or cannot generate any economic benefits through use or
    disposal as expected, the fixed assets are derecognized. The selling, transfer, scrapping or damage
    disposal income shall be included in the current profit and loss statement after deducing the book value
    and relevant taxes.
                                            Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.4.14. Construction in progress4.14.1 Classification of construction in progress
    Construction in progress are measured on actual costs, including the direct costs of construction,
    capitalised borrowing costs during the period of construction and other expenditures. The construction in
    progress is not depreciated.4.14.2 Reclassification standard and time of construction in progress to fixed assets
    Construction in progress is reclassified to the fixed assets when completed and ready for use.4.14.3 Impairment test method and method for accruing impairment provision ofconstruction in progress
    On each balance sheet date, the Group made assessment on whether or not there is any indication of
    potential impairment of construction in progress. If there is any evidence that indicates the possibility of
    asset impairment, the recoverable amount of the asset is estimated. The estimated recoverable amount of
    an asset is based on an individual asset. If it is difficult to determine the recoverable amount individually,
    the recoverable amount is determined for the cash-generating unit to which the asset belongs. If the
    recoverable amount of the asset or cash-generating unit is less than its book value, the impairment
    provision of asset shall be accrued according to the difference and included in the current profit and loss
    statement.
    After a loss of asset impairment of construction in progress has been recognized, it is not be reversed in
    future accounting periods.4.15. Borrowing costs4.15.1 Recognition principles of borrowing costs capitalization
    Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
    asset shall be capitalized after expenditure to acquire happens, borrowing costs happen, acquisition,
    construction or production essential for making the assets ready for their intended use or sales. Other
    borrowing costs are recognized as expenses when happening.4.15.2 Capitalization period of borrowing costs
    Capitalization of borrowing costs shall cease when all the activities necessary to prepare the qualifying
    asset for its intended use of sale are substantially complete.4.15.3 Interruption period of capitalization
    If the acquisition, construction or production of a qualifying asset is abnormally interrupted, and the
    interruption period exceeds three months, the capitalization of borrowing costs shall be temporarily
    ceased, until the construction or production resumes.4.16. Biological assets
    Productive biological assets refer to the biological assets held for the purposes of producing agricultural
    products, rendering services or leasing, etc. The productive biological assets of the Group are vines that
    produce grapes. Initial measurement for the productive biological assets is carried out according to the
                                             Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    cost. For the occurred cost of the self-breeding productive biological asset before achieving the intended
    production and operation purposes can be directly attributable to the necessary expenses of the asset,
    including the borrowing cost conforming to capitalization.
    After reaching the intended production and operation purposes, the productive biological assets are
    accrued depreciation within useful life based on the fixed year average method. The expected useful life,
    net residual value and annual depreciation rate of different productive biological assets are as follows:
    Category                        Estimated useful life               Estimated residual value (%)
    Annual depreciation rate
    Vines                           20 years
    5%
    The Group reviewed the useful life, expected net residual value, and the depreciation method of the
    productive biological assets at the end of each year. In case of any change, the change will be disposed as
    accounting estimate change.
    At the time of sale, loss, death, damage or destroy of a productive biological asset, the difference after
    deducting the book value and the relevant taxes from the disposal income are recognized in the current
    profit and loss statement.
    On each balance sheet date, the Group made assessment on whether or not there is any indication of
    potential impairment of productive biological assets. If there is any evidence that indicates the possibility
    of asset impairment, the recoverable amount of the asset is estimated. The estimated recoverable amount
    of an asset is based on an individual asset. If it is difficult to determine the recoverable amount
    individually, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
    If the recoverable amount of the asset or cash-generating unit is less than its book value, the impairment
    provision of asset shall be accrued according to the difference and included in the current profit and loss
    statement.
    After a loss of asset impairment of a productive biological asset has been recognized, it is not be reversed
    in future accounting periods.4.17. Intangible assets4.17.1 Pricing method of intangible assets
    Intangible assets include land use right and software, etc.
    Initial measurement for intangible assets is carried out according to the cost. For the intangible assets with
    finite lives, since they are available, the amount after the original value deducts expected net residual
    value and the accrued accumulative amount of provision for impairment is amortized evenly based on
    straight line method. The intangible assets with indefinite lives are not amortized.
                                                    Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.4.17.2 Estimation of useful life of intangible assets with finite lives
    At the end of the period, the useful life and amortization method of the intangible assets with finite lives
    shall be reviewed and adjusted if necessary.
    Useful lives of different intangible assets are as follows:
            Item                   Predicted useful life                              Reference
    Land use right                40-50 years                    Useful life of land
    Software use right            5-10 years                     Predicted period of bringing economic benefits4.17.3 Judgment reference of intangible assets with indefinite lives
    If the periods during which it can bring economic benefits to the Group cannot be reliably determined, the
    intangible assets are classified as intangible assets with indefinite useful life. However, the Group doesnt
    have this kind of intangible assets.4.17.4 Accruing of impairment provision of intangible assets
    On each balance sheet date, the Group made assessment on whether or not there is any indication of
    potential impairment of intangible assets with finite lives. If there is any evidence that indicates the
    possibility of asset impairment, the recoverable amount of the asset is estimated. The estimated
    recoverable amount of an asset is based on an individual asset. If it is difficult to determine the
    recoverable amount individually, the recoverable amount is determined for the cash-generating unit to
    which the asset belongs. If the recoverable amount of the asset or cash-generating unit is less than its
    book value, the impairment provision of asset shall be accrued according to the difference and included in
    the current profit and loss statement.
    Depreciation test for intangible assets with indefinite lives and not reaching the available state shall be
    carried out every year, regardless of whether there is any indication of depreciation.
    After a loss of intangible asset impairment has been recognized, it is not be reversed in future accounting
    periods.4.18 .Amortization methods of long-term prepaid expenses
    Long-term prepaid expenses refer to prepaid expenses occurred that should be borne by current and
    subsequent periods and should be amortized over more than one year. Long-term prepaid expenses are
    amortized evenly over the expected beneficial periods.
    Amortization period of different long-term prepaid expenses of the Group are as follows:
                                                                           Amortization period
    Land requisition fee                                                  50 years
    Land leasing fee                                                      50 years
                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    Greening fee                                                 5 years
    Others                                                       5-50 years4.19. Revenue4.19.1 Specific judgment standards of the acknowledging time of revenues from sale of goods
    When the significant risks and rewards of ownership of goods have been transferred to the buyer,
    provided that the Group maintains neither continuous management right involvement to the degree
    usually associated with ownership, nor effective control over the goods sold, and cost of sales can be
    measured reliably. When the relevant economic benefits are likely to flow into the enterprise and the
    relevant incurred cost or cost to be incurred can be measured reliably, the realization of the revenue from
    sale of goods can be recognized.4.19.2 Reference for confirming rendering of services
    When income amount of rendering of services can be measured reliably, the relevant economic benefits
    are likely to flow into the enterprise, the stage of completion of the transaction can be measured reliably,
    and the incurred cost or cost to be incurred in the transaction can be measured reliably, then the income
    realization of rendering of services can be recognized. The Group confirmed the income of the rendered
    services according to percentage-of-completion method on the balance sheet date. The
    percentage-of-completion of the service transaction is determined according to the proportion of the
    rendered service accounting for the total services that shall be rendered.
    If the outcome of rendering of service transaction cannot be reliably estimated, the income of the rendered
    services are determined according to the render cost amount that is incurred and is expected to be
    compensated, and the incurred service cost shall be the period charge. If the incurred service cost is
    expected to be unable to be compensated, the income will not be determined.4.20. Government grants4.20.1 Type
    Government grants refer to monetary or non-monetary assets received by the Group from the government.
    Government grants are recognized where there is reasonable assurance that the grant will be received and
    all attaching conditions will be complied with. Monetary grants are measured on the basis of the amount
    received or the amount receivable. According to the nature of the granted object clearly stipulated in
    relevant government documents, government grants include grants related to assets and grants related to
    income.4.20.2 Accounting policies
    Government grants related to assets are recognized as deferred income and are distributed equally in the
    current profit and loss statement for the current period within the useful lives of the relevant assets.
    The government grants relevant to revenue to be used as compensation for future expenses or losses are
    recognized as deferred income and are recorded in the profit and loss statement for the period where the
    relevant expenses are recognized; or those to be used as compensation for relevant expenses or losses
    already occurred are recorded directly in the profit and loss statement for the current period.
                                            Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.4.21 Deferred income tax assets and deferred income tax liabilities
    The balance sheet liability method is used for recognizing deferred income tax assets and deferred income
    tax liabilities for the difference between certain assets, book value of liability items and their tax base, and
    the temporary differences arising from the book value of items (that are not recognized as assets and
    liabilities but can be recognized the tax bases as stipulated by tax law) and tax bases.
    Normally all temporary differences are recognized the relevant deferred income taxes. However, for the
    deductible temporary differences, the Group recognized the relevant deferred income tax assets taking the
    taxable income that is likely to be obtained for deducting deductible temporary differences as the limit. In
    addition, the temporary differences relevant to initial recognition of goodwill and relevant to the initial
    recognition of assets or liabilities arising from transaction not of business combination, and not
    influencing accounting profit and taxable income (or deductible loss) are not recognized for the relevant
    deferred income tax assets or liabilities.
    For the deductible losses and tax credits that can be transferred during subsequent years, the
    corresponding deferred income tax assets shall be recognized by taking the future taxable income that is
    likely to be used to deduct deductible losses and tax credits as the limit.
    The Group recognized the deferred income tax liabilities arising from the taxable temporary differences
    relevant to the subsidiary companies, except for that the Group can control the time of the reverse of the
    temporary differences which are unlikely to be reversed in the foreseeable future. For the deductible
    temporary differences relevant to the subsidiary companies, the Group will recognize the deferred income
    tax assets only when the temporary differences are likely to be reversed in the foreseeable future and the
    taxable income for deducting deductible temporary differences is likely to be achieved in the future.
    On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are measured
    according to the applicable tax rate during the period of expecting to repossess the relevant assets or pay
    off relevant liabilities as stipulated by tax law.
    Except for the current income taxes and deferred income taxes (relevant to transaction and matter that are
    directly included in other comprehensive income or stockholder's equity) that are included in other
    comprehensive income or stockholder's equity and the deferred income taxes arising from business
    combination that adjusts the book value of the goodwill, the expenses or revenues of other current income
    taxes and deferred income taxes are included in the current profit and loss statement.
    On the balance sheet date, the Group shall review the book value of deferred income tax assets and shall
    write down the book value of deferred income tax assets if sufficient taxable income is unlikely to be
    obtained in the future to deduct the benefits of deferred income tax assets. The amount written down shall
    be reversed when it is likely to obtain sufficient taxable income.
    When there is the legal right of netting or intention of netting or carrying out obtaining assets and paying
    off liabilities at the same time, the current income tax asset and current income tax liability of the Group
    are reported according to the net amount after deduction.
    When there is the legal right of netting the current income tax asset and current income tax liability and
    the deferred income tax assets and deferred income tax liabilities are relevant to the income tax collected
    by same tax collection and management department on the same taxpayer or different taxpayers, however,
    the involved tax payers intend to net the current income tax assets and liabilities or obtain assets and pay
                                            Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    off liabilities at the same time during every period of reverse of each significant deferred income tax
    assets and liabilities in the future, deferred income tax assets and deferred income tax liabilities of the
    Group are reported according to the net amount after deduction.4.22 Operating leases and financial leases4.22.1 Accounting treatment of operating leases
    Leases that transfer substantially all the rewards and risks of ownership of assets to the Group, are
    accounted for as finance leases, otherwise are accounted for as operating leases.
    Rental expenses under the operating leases are credited to related costs of the assets or the current profit
    and loss statement on the straight line basis over the lease terms. The initial direct costs are credited to the
    current profit and loss statement. Contingent rentals are recorded in the current profit and loss statement
    upon actual accrual.4.23. Changes in main accounting policies and accounting estimates4.23.1 Changes in accounting policies
    Nil4.23.2 Changes in accounting estimates
    Nil4.24 Correction of previous accounting errors
    Nil4.25 Other main accounting policies, accounting estimates and compiling method of financial
    statement
    During the application of the accounting policies of this Financial Report IV, the Group needs to judge,
    estimate and assume the book value of the report items that are unable to be accurately measured due to
    the inherent uncertainties of business activities, in which the judgment, estimation and assumption are
    made based on the previous historical experience of the management level of the Group and considering
    other relevant factors. The actual results may have differences from the estimation of the Group.
    The Group regularly reviews the above-mentioned judgment, estimation and assumption based on the
    continuous operation, and the change of accounting estimate only affects the current period of change, of
    which the influence number will be recognized at the current period of change; in case of influencing both
    current period and future period of change, the influence number will be recognized at the current period
    and future period of change.
    Critical assumptions and uncertain factors adopted in accounting estimates
    On the balance sheet date, the main critical assumptions and uncertainties in accounting estimates that are
    likely to result in significant adjustments in assets and book value of liabilities in future period include:
    Deferred income tax assets
    Within the limit of the likeliness that there is sufficient taxable income to deduct deductible losses, the
                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.deferred income tax assets shall be recognized according to all deductible losses that have not beenutilized, which requires the management level to use a lot of judgments to estimate the occurred time andamount of taxable income to be obtained in the future, and combine with tax planning strategy to decidethe amount of deferred income tax assets that shall be recognized.DepreciationThe Group uses straight line method for provision for depreciation within the expected useful life afterconsidering the residual value of the fixed assets. The Group regularly reviewed the expected useful lifeto decide the amount of depreciation expense that will be included in every report period. The expecteduseful life is recognized by the Group according to the previous experience on similar assets and incombination with the expected technical changes. The depreciation expense shall be adjusted if there aresignificant changes in the previous estimate.Useful life of intangible assetsThe expected useful life of intangible assets are estimated based on actual useful life of the previousintangible assets of similar natures and functions and according to historical experience and inconsideration of the duration of the contractual rights or other legal rights applicable to the intangibleassets.In case that the useful life of the intangible assets shortens or extends, the amortization period will beadjusted in the future period for intangible assets with finite life; for intangible assets with indefinite life,if there is evidence showing that their useful life is finite, their useful life will be estimated in the futureperiod and they will be disposed according to the disposal principles of intangible assets with finite life.Depreciation of biological assetsProductive biological assets are examined at each balance sheet date by the Group. If any reliableevidence shows that the net realizable value of any consumptive biological assets or the recoverableamount of any productive biological asset is lower than its book value due to natural disasters, plantdiseases and insect pests, animal disease or change of market demand, provision for price decrease andimpairment should be made on the basis of the difference between the net realizable value or therecoverable amount and the book value and be recorded in the current profit and loss statement.Long-term assets impairmentThe Group carries out impairment assessment on long-term assets to determine if the recoverable amountof assets drops to the amount lower than their book value. If the situation shows that the book value of thelong-term assets may not be fully recovered, the relevant assets will be deemed as having been impairedand the impairment loss shall be correspondingly recognized.The recoverable amount is the higher in: the net amount of fair value of an asset (or cash-generating unit)minus disposal expense, and the present value of the estimated future cash flow of the asset (orcash-generating unit). It is difficult for the Group to accurately estimate the fair value of an asset becauseof difficulty in obtaining the open market price of the asset (or cash-generating unit). It needs to makesignificant judgments on the output, selling price, relevant operating cost of the asset (or cash-generatingunit) and the discount rate used for calculating present value when estimating the present value of futurecash flow. The Group will use all easily available materials in estimating the recoverable amount,
                                             Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
    including the forecast relevant to output, selling price and relevant operating cost according to the
    reasonable and supportable assumption.
    Bad account provision of accounts receivable
    Bad account provision of accounts receivable shall be recognized by the management level according to
    the objective evidences (e.g. the possibility of bankruptcy or severe financial difficulty of the debtor) that
    can affect the recovery of the accounts receivable. The management level will reevaluate bad account
    provision in the end of every year.
    Inventory depreciation provision accrued based on net realizable value
    According to the inventory accounting policy, the Group carries out price decrease provision for obsolete
    and unsalable inventories with higher cost than the net realizable value measurement according to the
    lower of the cost and net realizable value. The Group will reevaluate if the inventories are obsolete and
    unsalable, and if the net realizable value is lower than inventory cost in the end of every year.5. Taxes5.1 Main taxes and tax rate of the Company
         Taxes                                              Tax basis                                         Tax rate
                         VAT is levied at 17% on the invoiced amount after deduction of eligible
    Value added tax                                                                                  17%
                         input VAT.
    Consumption tax          The consumption tax is levied at 10%-20% on taxable revenue.                        10%-20%
    Business tax             The business tax is levied at 5% on taxable revenue.                                5%Urban maintenance and
                      Levied at 7% of total business tax payment.                                            7%construction tax
    Corporate income tax     The corporate income tax is levied at 25% on taxable income.                        25%5.2 Tax incentives and relative permitNingxia Changyu Grape Growing Co., Ltd., a subsidiary of the Company, whose principal activity is grapegrowing, is incorporated in Yongning County, Ningxia Hui Autonomous Region. According to clause 27 ofPRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax Measures for Implementation, thecompany enjoys an exemption of corporate income tax.Xinjiang Tianzhu Wine Co., Ltd., a subsidiary of the Company, is an enterprise engaged in the production andsales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. In accordance withrelevant regulations of Notice concerning Issuing Circular on Preferential Corporate Income Tax Policies forNewly Established Enterprises in Underprivileged Areas of Xinjiang (Provisional) (Cai Shui [2011] No. 60),and Notice of Financial & Tax Policies to Improve the Development of Agricultural Product ManufacturingIndustry (Xin Zheng Fa [2010] No. 105), the company enjoys preferential corporate income tax policies.From 2012 to 2015, from the year, the company got the first operating revenue, the company shall be
                                          Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.exempted from local corporate income tax based on the preferential policy of corporate income tax rate at15%. The applicable tax rate in this year is 9%.Xinjiang Changyu Baron Balboa Chateau Co., Ltd., a subsidiary of the Company, is an enterprise engaged inthe production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. Inaccordance with relevant regulations of Notice concerning Issuing Circular on Preferential Corporate IncomeTax Policies for Newly Established Enterprises in Underprivileged Areas of Xinjiang (Provisional) (Cai Shui[2011] No. 60), and Notice of Financial & Tax Policies to Improve the Development of Agricultural ProductManufacturing Industry (Xin Zheng Fa [2010] No. 105), the company enjoys preferential corporate incometax policies. From 2011 to 2015, from the year, the company got the first operating revenue, the companyshall be exempted from local corporate income tax based on the preferential policy of corporate income taxrate at 15%. The applicable tax rate in this year is 9%.
                                                                                                                                                                      Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.6. Business combination & consolidated financial statements6.1 Particulars of the subsidiaries6.1.1 Subsidiaries acquired by establishment or investment
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                                                                                                                                                                                                                                    Amount for
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    Name of the subsidiary                         Registered place       Business nature                       Business scope                               the net        in shares    of voting                    minority         shareholders
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    Beijing Changyu Sales                                                                   RMB
                              Wholly-owned
    and Distribution Co.,                        Beijing City, China      Sales             1,000,000    Sales of wine                       1,000,000                     100%         100%         Yes
                              subsidiary
    Ltd. (“Beijing Sales”)                                                                Yuan
    Yantai Kylin Packaging                       Yantai           City,                     RMB
                              Wholly-owned                                                           Production      of   packaging
    Co.,      Ltd.     (“Kylin                  Shandong    Province, Manufacturing 15,410,000                                             23,176,063                     100%         100%         Yes
                              subsidiary                                                             materials
    Packaging”)                                 China                                      YuanYantai Changyu-Castel
                                             Yantai           City,
    Wine Chateau Co., Ltd. Holding                                                          USD
                                             Shandong    Province, Manufacturing                     Production and sales of wine       28,968,100                     70%          100%         Yes            12,365,016
    (“Changyu       Chateau”) subsidiary                                                  5,000,000
                                             China(b)
    Changyu          (Jingyang)                  Xianyang         City,                     RMB
                              Wholly-owned
    Pioneer        Wine Co.,                     Shaanxi     Province, Manufacturing 1,000,000           Production and sales of wine        1,000,000                     100%         100%         Yes
                              subsidiary
    Ltd. (“Jingyang Wine”)                     China                                      Yuan
                                                                                                                                                                       Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                          Balance after the owners
                                                                                                                                                                                                                                     Amount for
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                                                                                                                                                       Other balance                                                                counteracting
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                               Type of the                                               Registered                                    investment at                                               consolidate                                           minority shareholders in this
    Name of the subsidiary                         Registered place        Business nature                       Business scope                               the net        in shares    of voting                    minority         shareholders
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                                                                                                                                                                                                                                                                   of year
    Yantai              Changyu                  Yantai            City,                     RMB
                              Wholly-owned
    Pioneer Wine Sales Co.,                      Shandong   Province, Sales                  8,000,000    Sales of wine                       8,000,000                     100%         100%         Yes
                              subsidiary
    Ltd. (“Sales Company”)                     China                                       YuanLangfang Development
    Zone       Castel-Changyu Holding            Langfang City, Hebei                        USD
                                                                       Manufacturing                  Production and sales of wine       19,835,730                     49%          100%         Yes            22,702,522
    Wine         Co.,      Ltd. subsidiary       Province, China                             6,108,818(“Langfang Castel”) (c)
    Changyu         (Jingyang)
                                             Xianyang          City,                     RMB
    Pioneer Wine          Sales Wholly-owned
                                             Shaanxi    Province, Sales                  1,000,000    Sales of wine                       1,000,000                     100%         100%         Yes
    Co.,     Ltd.   (“Jingyang subsidiary
                                             China                                       YuanSales”)
    Langfang            Changyu                                                              RMB
                              Wholly-owned Langfang City, Hebei
    Pioneer Wine Sales Co.,                                                Sales             1,000,000    Sales of wine                       1,000,000                     100%         100%         Yes
                              subsidiary     Province, China
    Ltd. (“Langfang Sales”)                                                                Yuan
    Shanghai            Changyu
                                                                                         RMBSales and Distribution Wholly-owned
                                             Shanghai City, China Sales                  1,000,000    Sales of wine                       1,000,000                     100%         100%         YesCo., Ltd. (“Shanghai subsidiary
                                                                                         YuanSales”)
    Beijing Changyu AFIP Wholly-owned Miyun                   County, Sales                  RMB          Planting of fruit, flowers and      1,000,000                     100%         100%         Yes
                                                                                                                                                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                              Balance after the owners
                                                                                                                                                                                                                                         Amount for
                                                                                                                                                                                                                                                             equity in the parent company
                                                                                                                                                           Other balance                                                                counteracting
                                                                                                                                              Actual                                                   Whether to                                              counteracts the losses of
                                                                                                                                                           included into    Proportion Proportion                     Interests of         minority
                                 Type of the                                              Registered                                       investment at                                               consolidate                                           minority shareholders in this
    Name of the subsidiary                           Registered place       Business nature                       Business scope                                  the net        in shares    of voting                    minority         shareholders
                                  subsidiary                                                capital                                         the end of                                                  financial                                               term higher than their
                                                                                                                                                           investment to       (%)       power (%)                   shareholders    profits/losses in the
                                                                                                                                               term                                                    statements                                               owners equity in the
                                                                                                                                                           the subsidiary                                                            interests of minority
                                                                                                                                                                                                                                                             subsidiaries at the beginning
                                                                                                                                                                                                                                        shareholders
                                                                                                                                                                                                                                                                       of year
    Eco-agriculture                 subsidiary     Beijing City, China                        1,000,000    oil crops;      poultry raising;
    Development Co., Ltd.                                                                     Yuan         sales of fresh fruit, rough
    (“Agricultural                                                                                        dried fruit and nut; tourism
    Development”)                                                                                         resource development; and
                                                                                                       technology consultation
    Beijing Changyu AFIP                                                                      RMB
                                Holding
    Wine Chateau Co., Ltd.                         Beijing City, China      Manufacturing 110,000,000 Production and sales of wine               77,000,000                     70%          100%         Yes            35,293,868
                                subsidiary
    (“Beijing Chateau”) (d)                                                                 Yuan
    Yantai Changyu Wine                            Yantai           City,                     RMB
                                Wholly-owned
    Sales Co., Ltd. ( “Wine                       Shandong    Province, Sales                5,000,000    Sales of wine                          5,000,000                     100%         100%         Yes
                                subsidiary
    Sales”)                                       China                                      Yuan
    Yantai               Changyu
                                               Yantai           City,                     RMB
    Pioneer           International Wholly-owned                                                           Import and export of goods
                                               Shandong    Province, Sales                5,000,000                                           5,000,000                     100%         100%         Yes
    Co.,       Ltd.     (“Pioneer subsidiary                                                              and technologies
                                               China                                      YuanInternational”)
    Hangzhou             Changyu                   Hangzhou         City,                     RMB
                                Wholly-owned                                                           Wholesale       and   retail   of
    Wine Sales Co., Ltd.                           Zhejiang    Province, Sales                500,000                                               500,000                     100%         100%         Yes
                                subsidiary                                                             stereotypes packaging food
    (“Hangzhou Changyu”)                         China                                      Yuan
    Ningxia              Changyu                   Yinchuan         City,                     RMB
                                Wholly-owned                            Planting                       Planting and       purchase    of      1,000,000                     100%         100%         Yes
    Grape       Growing      Co.,                  Ningxia           Hui                      1,000,000
                                                                                                                                                                     Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                       Balance after the owners
                                                                                                                                                                                                                                  Amount for
                                                                                                                                                                                                                                                      equity in the parent company
                                                                                                                                                     Other balance                                                               counteracting
                                                                                                                                        Actual                                                   Whether to                                             counteracts the losses of
                                                                                                                                                     included into    Proportion Proportion                    Interests of         minority
                             Type of the                                               Registered                                    investment at                                               consolidate                                          minority shareholders in this
    Name of the subsidiary                       Registered place        Business nature                        Business scope                              the net        in shares    of voting                   minority         shareholders
                              subsidiary                                                 capital                                      the end of                                                  financial                                              term higher than their
                                                                                                                                                     investment to       (%)       power (%)                   shareholders   profits/losses in the
                                                                                                                                         term                                                    statements                                              owners equity in the
                                                                                                                                                     the subsidiary                                                           interests of minority
                                                                                                                                                                                                                                                      subsidiaries at the beginning
                                                                                                                                                                                                                                 shareholders
                                                                                                                                                                                                                                                                of year
    Ltd.            (“Ningxia subsidiary      Autonomous Region,                          Yuan         grape
    Growing”)                                 China
    Huanren          Changyu
                                                                                       RMB
    National      Wine   Sales Wholly-owned Benxi City, Liaoning
                                                                     Sales             2,000,000    Wholesale and retail of wine        2,000,000                     100%         100%         Yes
    Co.,   Ltd.    (“National subsidiary      Province, China
                                                                                       YuanWines”)
    Liaoning Changyu Ice                                                                   RMB
                            Holding        Benxi City, Liaoning                                     Production and sales of ice
    Wine Chateau Co., Ltd.                                               Manufacturing 26,300,000                                          13,413,000                     51%          100%         Yes              33,319,062
                            subsidiary     Province, China                                          wine
    (“Ice Chateau”) (e)                                                                  Yuan
    Yantai       Development            Yantai                   City,                     RMBZone Changyu TradingWholly-owned
                                    Shandong           Province, Sales                 5,000,000    Wholesale and retail of wine        5,000,000                     100%         100%         YesCo., Ltd. (“Development
                         subsidiaryZone Trading”)
                                    China                                              Yuan
    Shenzhen         Changyu
                                           ShenzhenCity,                               RMBWine Marketing Ltd. Wholly-owned
                                           Guangdong                 Sales             500,000      Wholesale and retail of wine          500,000                     100%         100%         Yes
    (“Shenzhen                 subsidiary
                                           Province,China                              YuanMarketing”)
    Yantai Fushan District                     Yantai            City,                     RMB
                            Wholly-owned
    Changyu Trading Co.,                       Shandong    Province, Sales                 5,000,000    Wholesale and retail of wine        5,000,000                     100%         100%         Yes
                            subsidiary
    Ltd. (“Fushan Trading”)                  China                                       Yuan
    Beijing AFIP Meeting Wholly-owned Miyun                 County, Service                RMB          Meeting     service,     food,        500,000                     100%         100%         Yes
                                                                                                                                                                            Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                               Balance after the owners
                                                                                                                                                                                                                                          Amount for
                                                                                                                                                                                                                                                              equity in the parent company
                                                                                                                                                            Other balance                                                                counteracting
                                                                                                                                               Actual                                                   Whether to                                              counteracts the losses of
                                                                                                                                                            included into    Proportion Proportion                     Interests of         minority
                               Type of the                                               Registered                                         investment at                                               consolidate                                           minority shareholders in this
    Name of the subsidiary                         Registered place        Business nature                       Business scope                                    the net        in shares    of voting                    minority         shareholders
                                subsidiary                                                 capital                                           the end of                                                  financial                                               term higher than their
                                                                                                                                                            investment to       (%)       power (%)                   shareholders    profits/losses in the
                                                                                                                                                term                                                    statements                                               owners equity in the
                                                                                                                                                            the subsidiary                                                            interests of minority
                                                                                                                                                                                                                                                              subsidiaries at the beginning
                                                                                                                                                                                                                                         shareholders
                                                                                                                                                                                                                                                                        of year
    Center           (“Meeting subsidiary       Beijing City, China                         500,000      accommodation, tourism and
    Center”) (f)                                                                            Yuan         sales of souvenir
                                                                                                      Tourism         and         culture
    Beijing AFIP Tourism                                                                     RMB
                              Holding        Miyun          County,                                   communication, development
    and Culture Company                                                    Tourism           500,000                                                 350,000                     70%          100%         Yes            2,966,399
                              subsidiary     Beijing City, China                                      of   tourist    resources      and
    (“AFIP Tourism”) (g)                                                                   Yuan
                                                                                                      meeting service
                                             Yinchuan          City,                                  Production and sales of wine,
    Ningxia            Changyu                                                               RMB
                              Wholly-owned Ningxia              Hui                                   packaging       materials      and
    Pioneer Wine Co., Ltd.                                                 Manufacturing 1,000,000                                                 1,000,000                     100%         100%         Yes
                              subsidiary     Autonomous Region,                                       planting,      processing      and
    (“Ningxia Wine”)                                                                       Yuan
                                             China                                                    purchase of grape
    Yantai Changyu Tinlot                        Yantai            City,                     RMB
                              Wholly-owned                             Wholesale and
    Chateau         Co.,   Ltd.                  Shandong      Province,                     80,000,000 Pre-packaged food                         80,000,000                     100%         100%         Yes
                              subsidiary                               retail
    (“Tinlot Chateau”)                         China                                       Yuan
                                             Qingtongxia       City,
                                                                                         RMB
    Qing Tong Xia Changyu Wholly-owned Ningxia       Hui                                                  Wholesale and retail of wine
    Wine Marketing Ltd.                                   Sales                              500,000                                                 500,000                     100%         100%         Yes
    (“Qing Tong Xia Sales) subsidiary Autonomous Region,                                                 and business agency
                                                                                         Yuan
                                             China
                                                                                                                                                                      Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                        Balance after the owners
                                                                                                                                                                                                                                   Amount for
                                                                                                                                                                                                                                                       equity in the parent company
                                                                                                                                                      Other balance                                                               counteracting
                                                                                                                                         Actual                                                   Whether to                                             counteracts the losses of
                                                                                                                                                      included into    Proportion Proportion                    Interests of         minority
                             Type of the                                             Registered                                       investment at                                               consolidate                                          minority shareholders in this
    Name of the subsidiary                       Registered place      Business nature                       Business scope                                  the net        in shares    of voting                   minority         shareholders
                              subsidiary                                               capital                                         the end of                                                  financial                                              term higher than their
                                                                                                                                                      investment to       (%)       power (%)                   shareholders   profits/losses in the
                                                                                                                                          term                                                    statements                                              owners equity in the
                                                                                                                                                      the subsidiary                                                           interests of minority
                                                                                                                                                                                                                                                       subsidiaries at the beginning
                                                                                                                                                                                                                                  shareholders
                                                                                                                                                                                                                                                                 of year
    Xinjiang         Changyu                   Shihezi         City,
                                                                                     RMB
    Baron Balboa Chateau Wholly-owned Xinjiang               Uygur                                    Production and sales of wine
                                                                   Manufacturing 150,000,000                                           150,000,000                     100%         100%         Yes
    Co.,   Ltd.     (“Shihezi subsidiary      Autonomous Region,                                     (bulk wine)
                                                                                     Yuan
    Chateau”)                                 China
                                                                                                  Production, processing and
    Ningxia          Changyu                   Yinchuan        City,                                  sales of wine, distilled wine,
                                                                                     RMB
    Mosel XV Chateau Co., Wholly-owned Ningxia                  Hui                                   non-alcohol     beverage     and
                                                                   Manufacturing 2,000,000                                               2,000,000                     100%         100%         Yes
    Ltd.            (“Ningxia subsidiary      Autonomous Region,                                     packaging materials, tourism,
                                                                                     Yuan
    Chateau”)                                 China                                                  meeting       reception      and
                                                                                                  catering service
    Shaanxi Changyu Ruina                      Xianyang        City,                     RMB          Planting of grape, processing
                            Wholly-owned
    Chateau       Co.,   Ltd.                  Shaanxi    Province, Manufacturing 20,000,000 of             wine,     tourism      and      20,000,000                     100%         100%         Yes
                            subsidiary
    (“Changan Chateau”)                      China                                     Yuan         sightseeingYantai Changyu Wine
    Research              and                  Yantai          City,                     RMB          Manufacturing      of     brandy,
                            Wholly-owned
    Development Co., Ltd.                      Shandong   Province, Manufacturing 500,000,000 wine and sparkling wine and                  500,000,000                          100%           100% Yes
                            subsidiary
    (“Development                             China                                     Yuan         preparation of sales projectCentre”)
    Changyu        (Huanren) Wholly-owned Benxi City, Liaoning Preparation for RMB                    Preparation for wine-making            5,000,000                     100%         100%         Yes
                                                                                                                                                                           Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                             Balance after the owners
                                                                                                                                                                                                                                        Amount for
                                                                                                                                                                                                                                                            equity in the parent company
                                                                                                                                                           Other balance                                                               counteracting
                                                                                                                                              Actual                                                   Whether to                                             counteracts the losses of
                                                                                                                                                           included into    Proportion Proportion                    Interests of         minority
                               Type of the                                               Registered                                        investment at                                               consolidate                                          minority shareholders in this
    Name of the subsidiary                         Registered place        Business nature                          Business scope                                the net        in shares    of voting                   minority         shareholders
                                subsidiary                                                 capital                                          the end of                                                  financial                                              term higher than their
                                                                                                                                                           investment to       (%)       power (%)                   shareholders   profits/losses in the
                                                                                                                                               term                                                    statements                                              owners equity in the
                                                                                                                                                           the subsidiary                                                           interests of minority
                                                                                                                                                                                                                                                            subsidiaries at the beginning
                                                                                                                                                                                                                                       shareholders
                                                                                                                                                                                                                                                                      of year
    Wine       Co.,        Ltd. subsidiary       Province, China           wine-making       5,000,000    project
    (“Huanren Wine”)                                                     project           Yuan
                                             Shihezi           City,
    Xinjiang Changyu Wine                                                                    RMB
                              Wholly-owned Xinjiang        Uygur                                      Wholesale of pre-packaged
    Sales      Co.,        Ltd.                                            Sales             10,000,000                                          10,000,000                     100%         100%         Yes
                              subsidiary     Autonomous Region,                                       food
    (“Xinjiang Sales”)                                                                     Yuan
                                             China
                                             Shihezi           City,
    Xinjiang Changyu Wine                                                                    RMB
                              Wholly-owned Xinjiang        Uygur
    Co.,    Ltd.    (“Xinjiang                                            Manufacturing 10,000,000 Wine and fruit wine                          10,000,000                     100%         100%         Yes
                              subsidiary     Autonomous Region,
    Wine”)                                                                                  Yuan
                                             China
                                             Yinchuan          City,
    Ningxia           Changyu                                                                RMB
                              Wholly-owned Ningxia              Hui                                   Wholesale      and   retail     of
    Trading        Co.,    Ltd.                                            Sales             1,000,000                                            1,000,000                     100%         100%         Yes
                              subsidiary     Autonomous Region,                                       pre-packaged food
    (“Ningxia Trading”)                                                                    Yuan
                                             China
                                                                                                      Production and sales of wine;
    Shaanxi Changyu Ruina                        Xianyang          City,                     RMB
                              Wholly-owned                                                            and        development          of
    Wine Sales Co., Ltd.                         Shaanxi    Province, Sales                  3,000,000                                            3,000,000                     100%         100%         Yes
                              subsidiary                                                              agricultural               tourism
    (“Shaanxi Sales”)                          China                                       Yuan
                                                                                                      attractions
    Penglai Changyu Wine Wholly-owned Penglai                      City,                     RMB
                                                                       Sales                          Wholesale and retail of wine            5,000,000                     100%         100%         Yes
    Sales      Co.,        Ltd. subsidiary       Shandong   Province,                        5,000,000
                                                                                                                                                                   Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                     Balance after the owners
                                                                                                                                                                                                                                Amount for
                                                                                                                                                                                                                                                    equity in the parent company
                                                                                                                                                   Other balance                                                               counteracting
                                                                                                                                      Actual                                                   Whether to                                             counteracts the losses of
                                                                                                                                                   included into    Proportion Proportion                    Interests of         minority
                             Type of the                                               Registered                                  investment at                                               consolidate                                          minority shareholders in this
    Name of the subsidiary                       Registered place        Business nature                       Business scope                             the net        in shares    of voting                   minority         shareholders
                              subsidiary                                                 capital                                    the end of                                                  financial                                              term higher than their
                                                                                                                                                   investment to       (%)       power (%)                   shareholders   profits/losses in the
                                                                                                                                       term                                                    statements                                              owners equity in the
                                                                                                                                                   the subsidiary                                                           interests of minority
                                                                                                                                                                                                                                                    subsidiaries at the beginning
                                                                                                                                                                                                                               shareholders
                                                                                                                                                                                                                                                              of year
    (“Penglai Wine”)                         China                                       Yuan
    Laizhou Changyu Wine                       Laizhou           City,                     RMB
                            Wholly-owned
    Sales      Co.,      Ltd.                  Shandong    Province, Sales                 1,000,000    Wholesale and retail of wine      1,000,000                     100%         100%         Yes
                            subsidiary
    (“Laizhou Wine”)                         China                                       Yuan
                                                                                       RMB
    Beijing           Changyu Wholly-owned
                                           Beijing City, China       Sales             500,000      Retail of pre-packaged food         500,000                     100%         100%         Yes
    Trading Co., Ltd.           subsidiary
                                                                                       Yuan
    Tianjin           Changyu                                                              RMB
                            Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Wine Sales Co.,                    Tianjin City, China       Sales             500,000                                          500,000                     100%         100%         Yes
                            subsidiary                                                              food
    Ltd. (j)                                                                               Yuan
    Fuzhou            Changyu                                                              RMB
                            Wholly-owned Fuzhou City, Fujian                                        Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                                               Sales             500,000                                          500,000                     100%         100%         Yes
                            subsidiary     Province, China                                          food
    (j)                                                                                    Yuan
    Nanjing           Changyu                                                              RMB
                            Wholly-owned Nanjing City, Jiangsu                                      Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                                               Sales             500,000                                          500,000                     100%         100%         Yes
                            subsidiary     Province, China                                          food
    (j)                                                                                    Yuan
    Xianyang          Changyu                  Xianyang          City,                     RMB
                            Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Drinks Sales                       Shaanxi     Province, Sales                 500,000                                          500,000                     100%         100%         Yes
                            subsidiary                                                              food
    Co., Ltd. (j)                              China                                       Yuan
    Shenyang          Changyu Wholly-owned Shenyang              City, Sales               RMB          Wholesale of pre-packaged           500,000                     100%         100%         Yes
                                                                                                                                                              Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                Balance after the owners
                                                                                                                                                                                                                           Amount for
                                                                                                                                                                                                                                               equity in the parent company
                                                                                                                                              Other balance                                                               counteracting
                                                                                                                                 Actual                                                   Whether to                                             counteracts the losses of
                                                                                                                                              included into    Proportion Proportion                    Interests of         minority
                           Type of the                                               Registered                               investment at                                               consolidate                                          minority shareholders in this
    Name of the subsidiary                     Registered place        Business nature                       Business scope                          the net        in shares    of voting                   minority         shareholders
                            subsidiary                                                 capital                                 the end of                                                  financial                                              term higher than their
                                                                                                                                              investment to       (%)       power (%)                   shareholders   profits/losses in the
                                                                                                                                  term                                                    statements                                              owners equity in the
                                                                                                                                              the subsidiary                                                           interests of minority
                                                                                                                                                                                                                                               subsidiaries at the beginning
                                                                                                                                                                                                                          shareholders
                                                                                                                                                                                                                                                         of year
    Pioneer Wine Co., Ltd. subsidiary        Liaoning    Province,                       500,000      food
    (j)                                      China                                       Yuan
                                                                                     RMB
    Jinan Changyu Pioneer Wholly-owned Jinan City, Shandong                                           Wholesale of pre-packaged
                                                                   Sales             500,000                                       500,000                     100%         100%         Yes
    Drinks Co., Ltd. (j)      subsidiary     Province, China                                          food
                                                                                     Yuan
    Shanghai       Changyu                                                               RMB
                          Wholly-owned Shanghai            City,                                  Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                                             Sales             500,000                                       500,000                     100%         100%         Yes
                          subsidiary     China                                                    food
    (j)                                                                                  Yuan
    Fuzhou         Changyu                                                               RMB
                          Wholly-owned Fuzhou City, Jiangxi                                       Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                                             Sales             500,000                                       500,000                     100%         100%         Yes
                          subsidiary     Province, China                                          food
    (j)                                                                                  Yuan
    Shijiazhuang Changyu                     Shijiazhuang      City,                     RMB
                          Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Wine Sales Co.,                  Hebei       Province, Sales                 500,000                                       500,000                     100%         100%         Yes
                          subsidiary                                                              food
    Ltd. (j)                                 China                                       Yuan
                                         Hangzhou          City,                     RMB
    Hangzhou       Yuzefeng Wholly-owned                                                              Wholesale of pre-packaged
                                         Zhejiang    Province, Sales                 500,000                                       500,000                     100%         100%         Yes
    Trading Co., Ltd. (j)     subsidiary                                                              food
                                         China                                       Yuan
    Jilin Province Changyu                                                               RMB
                          Wholly-owned Changchun           City,                                  Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                                             Sales             500,000                                       500,000                     100%         100%         Yes
                          subsidiary     Jilin Province, China                                    food
    (j)                                                                                  Yuan
                                                                                                                                                              Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                                                                                                                                                                                Balance after the owners
                                                                                                                                                                                                                           Amount for
                                                                                                                                                                                                                                               equity in the parent company
                                                                                                                                              Other balance                                                               counteracting
                                                                                                                                 Actual                                                   Whether to                                             counteracts the losses of
                                                                                                                                              included into    Proportion Proportion                    Interests of         minority
                           Type of the                                               Registered                               investment at                                               consolidate                                          minority shareholders in this
    Name of the subsidiary                     Registered place        Business nature                       Business scope                          the net        in shares    of voting                   minority         shareholders
                            subsidiary                                                 capital                                 the end of                                                  financial                                              term higher than their
                                                                                                                                              investment to       (%)       power (%)                   shareholders   profits/losses in the
                                                                                                                                  term                                                    statements                                              owners equity in the
                                                                                                                                              the subsidiary                                                           interests of minority
                                                                                                                                                                                                                                               subsidiaries at the beginning
                                                                                                                                                                                                                          shareholders
                                                                                                                                                                                                                                                         of year
    Beijing       Changyu                                                                RMB
                          Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Wine Sales Co.,                  Beijing City, China       Sales             500,000                                       500,000                     100%         100%         Yes
                          subsidiary                                                              food
    Ltd. (j)                                                                             Yuan
    Harbin        Changyu                    Harbin            City,                     RMB
                          Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Wine Sales Co.,                  Heilongjiang              Sales             500,000                                       500,000                     100%         100%         Yes
                          subsidiary                                                              food
    Ltd. (j)                                 Province, China                             Yuan
    Hunan         Changyu                    Changsha          City,                     RMB
                          Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                   Hunan       Province, Sales                 2,000,000                                   2,000,000                     100%         100%         Yes
                          subsidiary                                                              food
    (j)                                      China                                       Yuan
                                         Yinchuan          City,
    Yinchuan      Changyu                                                                RMB
                          Wholly-owned Ningxia              Hui                                   Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                                             Sales             500,000                                       500,000                     100%         100%         Yes
                          subsidiary     Autonomous Region,                                       food
    (j)                                                                                  Yuan
                                         China
    Kunming       Changyu                    Kunming           City,                     RMB
                          Wholly-owned                                                            Wholesale of pre-packaged
    Pioneer Wine Co., Ltd.                   Yunan       Province, Sales                 500,000                                       500,000                     100%         100%         Yes
                          subsidiary                                                              food
    (j)                                      China                                       Yuan
                                                                  Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                  Notes: (b) Changyu Chateau is a Sino-foreign joint venture established by the Company and a foreign
                     investor. Pursuant to an operation contract signed by the Company and Changyu Chateau, the
                     Company is entrusted to manage Changyu Chateau by paying contracting fees and therefore has
                     the full power to control its strategic operating, investing and financing policies. The operation
                     agreement will terminate on December 31, 2022.
                  (c) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreign investor.
                      Pursuant to the agreement signed by the Company and Langfang Castel, the Company is entrusted
                      to manage Langfang Castel by paying contracting fees and therefore has the full power to control
                      its strategic operating, investing and financing policies, therefore the financial statements of
                      Langfang Castel are consolidated in the Groups financial statements. The operation agreement
                      will terminate on December 31, 2022.
                    (d) Beijing Chateau is a limited liability company established by the Company and a domestic
                      investor. Pursuant to an operation contract signed by the Company and Beijing Chateau, the
                      Company is entrusted to manage Beijing Chateau by paying contracting fees and therefore has the
                      full power to control its strategic operating, investing and financing policies. The operation
                      agreement will terminate on September 2, 2019.
                    (e) Ice Chateau is a Sino-foreign joint venture established by the Company and a foreign investor.
                       Pursuant to the agreement signed by the Company, Ice Chateau and the foreign investor, the
                       Company is entrusted to manage Ice Chateau by paying contracting fees and therefore has the full
                       power to control its strategic operating, investing and financing policies. The operation agreement
                       will terminate at December 31, 2016.
                    (f) Conference Center is a wholly-owned subsidiary of Beijing Chateau.
                    (g) AFIP Tourism is a limited liability company established by the Company and a domestic investor.
                       Pursuant to an operation contract signed by the Company and AFIP, the Company is entrusted to
                       manage AFIP by paying contracting fees and therefore has the full power to control its strategic
                       operating, investing and financing policies. The operation contract will terminate on September 2,
                       2019.
                  (i) Laizhou Sales Wine is a limited liability company established by the Company in 2013 with the
                      registered capital of RMB 1,000,000 Yuan. By December 31, 2013, the Company had completed
                      all the capital contributions.
                  (j) are the wholly-owned subsidiaries of Pioneer International.
         6.1.2 Subsidiary acquired from a business combination under non-common control
                                                                                                                                                  Unit: Yuan
    Name of the   Type of the   Registered   Business   Registered Business    Actual      Other     Proportion Proportion Whether to Interests of   Amount for      Balance
    subsidiary    subsidiary      place       nature     capital    scope     investment   balance   in shares   of voting consolidate   minority    counteracting   after the
                                                                                 Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                                                                            at the end    included      (%)   power (%) financial shareholders      minority           owners
                                                                                             of term      into the                      statements                shareholders equity in the
                                                                                                            net                                                   profits/losses        parent
                                                                                                         investment                                                   in the           company
                                                                                                           to the                                                  interests of    counteracts
                                                                                                         subsidiary                                                 minority       the losses of
                                                                                                                                                                  shareholders         minority
                                                                                                                                                                                   shareholders
                                                                                                                                                                                   in this term
                                                                                                                                                                                   higher than
                                                                                                                                                                                         their
                                                                                                                                                                                       owners
                                                                                                                                                                                   equity in the
                                                                                                                                                                                   subsidiaries
                                                                                                                                                                                         at the
                                                                                                                                                                                       beginning
                                                                                                                                                                                        of year
                                Shihezi City,Xinjiang
                                Xinjiang                                   Production
    Tianzhu Wine Holding                                          RMB
                                Uygur                                      and
    Co.,          Ltd. subsidiary                   Manufacturing 75,000,000                    60,000,000                60%     100%      Yes          56,093,912
                                Autonomous                                 sales       of
    (“Xinjiang                                                   Yuan
                                Region,                                    wineTianzhu”) (a)
                                China
                                                                           Trading,
    Etablissements                                                             brokerage
    Roullet                                                                    and      sales
                  Wholly-owned Cognac,                        EUR
    Fransac                                         Trading                    agency      of                             100%    100%      Yes
                  subsidiary    France                        2,896,531
    (“France                                                                  wine, liquor
    Trading”) (h)                                                             and      other
                                                                           drinks
                        Notes: (a) Xinjiang Tianzhu is a subsidiary of the Company by merger and acquisition in August 2009,
                           whose 60% of the shares are held by the Company. Pursuant to an operation contract signed by the
                           Company and Xinjiang Tianzhu, the Company is entrusted to manage Xinjiang Chateau by paying
                           contracting fees and therefore has the full power to control its strategic operating, investing and
                           financing policies. The operation agreement will terminate on December 31, 2018.
                        (h) France Trading is a subsidiary of the Company by merger and acquisition in December 2013,
                            whose 100% of the shares are held by the Company.
                                              Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.6.2 Notes on changes in the scope of consolidationThe scope of consolidated financial statements conforms with the last year except that thesubsidiaries are newly established or acquired in this year.6.3 Entities included or excluded in the scope of consolidation in the report periodSubsidiaries, entities with special purpose, or entities on which the Company has controlling powerthrough entrusted operation or leasing included in the scope of consolidation in this term.
                                                                                            Unit: Yuan
                        Name                            Net asset at the end of term      Net profit of the this term
    Beijing Changyu Trading Co., Ltd.                                             500,000                                    -
    Tianjin Changyu Pioneer Wine Sales Co., Ltd. (j)                              494,776                             -5,224
    Fuzhou Changyu Pioneer Wine Co., Ltd. (j)                                     500,000                                    -
    Nanjing Changyu Pioneer Wine Co., Ltd. (j)                                    500,000                                    -
    Xianyang Changyu Pioneer Drinks Sales Co., Ltd. (j)                           500,000                                    -
    Shenyang Changyu Pioneer Wine Co., Ltd. (j)                                   500,000                                    -
    Jinan Changyu Pioneer Drinks Co., Ltd. (j)                                    363,773                           -136,227
    Shanghai Changyu Pioneer Wine Co., Ltd. (j)                                   500,000                                    -
    Fuzhou Changyu Pioneer Wine Co., Ltd. (j)                                     500,000                                    -
    Shijiazhuang Changyu Pioneer Wine Sales Co., Ltd.                             433,234                            -66,766(j)
    Hangzhou Yuzefeng Trading Co., Ltd. (j)                                       500,000                                    -
    Jilin Province Changyu Pioneer Wine Co., Ltd. (j)                             363,756                           -136,244
    Beijing Changyu Pioneer Wine Sales Co., Ltd. (j)                              500,000                                    -
    Harbin Changyu Pioneer Wine Sales Co., Ltd. (j)                               500,000                                    -
    Hunan Changyu Pioneer Wine Co., Ltd. (j)                                    2,000,000                                    -
    Yinchuan Changyu Pioneer Wine Co., Ltd. (j)                                   500,000                                    -
    Kunming Changyu Pioneer Wine Co., Ltd. (j)                                    421,229                            -78,771Notes: Established in April 2014, Beijing Changyu Trading Co., Ltd. is a wholly-owned subsidiaryof Beijing Chateau with the registered capital of RMB 500,000 Yuan.(j) are newly established limit liability companies and are the wholly-owned subsidiaries of PioneerInternational.6.4 Translation of exchange rate of main accounts of overseas businessesThe statement of France Trading, an overseas subsidiary, shall adopt EUR as recording currency.When compiling consolidated statement, EUR 1 shall be converted into RMB 8.3946 Yuan.7. Notes to consolidated financial statements7.1 Monetary fund
                                                                                                               Unit: Yuan
                                                     Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
                                            Ending sum                                         Beginning sum
          Item                 Foreign      Conversion                           Foreign       Conversion
                                                                 RMB                                               RMB
                               currency        rate                              currency         rate
    Cash:                             --            --                   59,735          --             --                  772,817
    RMB                               --            --                   59,735          --             --                  772,817
    Bank deposit:                     --            --           1,734,396,909           --             --           1,235,788,080
    RMB                               --            --           1,723,847,765           --             --           1,222,683,414
    EUR                             1,256,658       8.3946          10,549,144         1,556,577        8.4189           13,104,666
    Other monetary funds:             --            --             127,085,283           --             --             131,257,285
    RMB                               --            --             127,085,283           --             --             131,257,285
    Total                             --            --           1,861,541,927           --             --           1,367,818,182As at June 30, 2014, the bank deposit with restricted ownership of the Group is RMB 2,687,519 Yuan, whichis the companys housing fund (December 31, 2013: RMB 2,609,237 Yuan).As at June 30, 2014, other monetary funds of the Group include pledge deposit of RMB 125,000,000 Yuanfor short-term loans from HSBC of HKD 303,963,343 (converting into RMB 243,170,674 Yuan),refundable of bills payable of RMB 1,670,000 Yuan (December 31, 2012: RMB 5,965,996 Yuan) andguaranty money for deposits for the card of your company of RMB 415,283 Yuan.As at June 30, 2014, the Group has monetary fund of RMB 10,549,144 Yuan that is deposited beyond theboundaries (December 31, 2013: RMB 13,104,666 Yuan).The bank deposit of short-term time deposit range from 3 months to 1 year as at June 30, 2014 is RMB126,547,482 Yuan (December 31, 2013: RMB 277,392,728 Yuan), with maturity terms ranging from 3months to 1 year, and the interest rates ranging from 2.86%-3.58%.7.2 Bills receivable7.2.1 Classification of bills receivable
                                                                                                                      Unit: Yuan
                        Type                                      Ending sum                         Beginning sum
    Banks acceptance bill                                                        270,389,669                             79,702,753
    Total                                                                        270,389,669                             79,702,7537.2.2 Pledged bills receivable at the term end
        Nil
                                                       Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.7.2.3 Bills receivable reclassified as accounts receivable due to the default of drawer
        Nil7.2.4 Bills receivable endorsed to the third parties but not yet matured by the Company at the termend are as follows:
                                                                                                                              Unit: Yuan
                  Drawer                            Issuing date                 Maturity date                       Amount        Remark
    Wenzhou Yuxiang Trading Co., Ltd.              January 2, 2014                   July 2, 2014                         3,100,000Zibo Wenhong Commerce and Trade
                                               January 26, 2014                  July 26, 2014                        1,575,000Co., Ltd.
    Zhongshan Fuqiao       Commerce     and
                                               March 14, 2014               September 14, 2014                        1,000,000Trade Co., Ltd.Pingyang County Aojiang Town
                                               January 3, 2014                   July 3, 2014                           700,000Pinquan Food Business Department
    Cixi Tianlong Wine Industry Co., Ltd.          January 26, 2014                  July 26, 2014                          635,982
    Total                                                    --                           --                              7,010,982        --7.3 Interest receivable7.3.1 Interest receivable
                                                                                                                                    Unit: Yuan
          Item                Beginning sum                     Increase                    Decrease                      Ending sum
    Bank fixed        deposits
                                          8,417,995                    3,997,874                    5,937,606                      6,478,263interest
    Total                                     8,417,995                    3,997,874                    5,937,606                      6,478,263As at June 30, 2014, there is no overdue interest.7.4 Accounts receivable7.4.1 Accounts receivable disclosed by type
                                                                                                                                    Unit: Yuan
                                               Ending sum                                                Beginning sum
           Type                   Book balance                Bad debt provision              Book balance                Bad debt provision
                              Amount       Proportion         Amount   Proportion          Amount        Proportion Amount ProportionAccounts receivable ofsignificant single amount
                              49,802,762        39.6%                                       72,118,959          40.7%and single accrued baddebt provisionAccounts receivable ofinsignificant single
                              76,080,183        60.4%                                      104,990,557          59.3%amount and single accruedbad debt provision
    Total                        125,882,945       --                           --             177,109,516          --                      --The credit term of account receivable is normally one month. Major customers can be granted a credit term
                                                   Full Text of 2014 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.up to three months. The accounts receivable balances are interest free.7.4.2 Accounts receivable transferred back or received in this term
        Nil7.4.3 Accounts receivable actually cancelled after verification in this term
        Nil7.4.4 Accounts receivable due from shareholders with voting rights of 5% (including 5%) or abovein this term
        Nil7.4.5 Top 5 units of accounts receivable
                                                                                                                    Unit: Yuan
                           Relationship with the                                                        Percentage of total
          Unit                                              Amount                   Period
                                 Company                                                                accounts receivableNonggongshang
    Supermarket   (Group) Third party                               14,287,627 Within 1 year                                11.4%Co., Ltd.
    Kunshan          Runhua
    Commercial     Co., Ltd.
                         Third party                             5,334,602 Within 1 year                                 4.2%
    Guangzhou       HuangpuBranchSuguo Supermarket Co.,
                       Third party                               4,843,618 Within 1 year                                 3.8%Ltd.Kangcheng Investment
                         Third party                             4,103,348 Within 1 year                                 3.3%(China) Co., Ltd.
    Wal-mart         (China)
                         Third party                             4,055,653 Within 1 year             &e