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个股公告正文

张 裕B:2015年半年度报告(英文版)

日期:2015-08-28附件下载

                      Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




Yantai Changyu Pioneer Wine Co. Ltd.

       2015 Semi-annual Report



              2015-Final 03




            August 2015




                                                                                1
                                                                           Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report



                                                              Contents




I、Important Notice, Contents and Definition ............................................................................... 3

II、Brief Introduction for the Company ....................................................................................... 5

III、Summary of Accounting Data and Financial Indicators ..................................................... 7

IV、Board of Directors’ Report ................................................................................................... 10

V、Major Issues ............................................................................................................................. 20

VI、Changes in Shares and the Shareholders’ Situation ........................................................... 29

VII、Relative situation for preferred shares ................................................................................ 33

VIII、Situation for Directors, Supervisors, Senior Management ............................................. 34

IX、Financial Report .................................................................................................................... 35

X、Catalogue of Documents for Future Reference .................................................................... 125




                                                                                                                                                   2
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                   I. Important Notice, Contents and Definition

The Board of Directors,the Board of Supervisors,directors, supervisors & senior management
of the Company collectively and individually accept full responsibility for the truthfulness,
accuracy and completeness of the information contained in the semi-annual report and there
are no unfaithful facts, misleading statements or significant omissions.


Except the following directors, other directors all personally attended the meeting for
deliberating the annual report.


Absent directors        Directors’ post      Absent reason              Authorized person

Mrs. Dai Hui            Director              Business trip              Mr. Sun Liqiang


The Company has no plan to distribute cash dividends and bonus shares; capital reserve will
not 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 the
financial report in the semi-annual report.


This semi-annual report involves in forward-looking statements about future plan etc. It bases
mainly on the basic command of economic development trend of China and the judgment of
several years of experience in this industry, with a great uncertainty. The Company does not
give the investors tangible commitment, so the investors should be in a special attention, and
choose wisely.




                                                                                                             3
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                                   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




                                                                                                      4
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                                 II、Brief Introduction for the Company

1. Company’s information

Abbreviation of the Shares:      Changyu A、Changyu B                 Code number of the Shares   000869、200869

Abbreviation 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 LIMITED

Abbreviation of English name CHANGYU

Legal Representative             Mr. Sun Liqiang


2. 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.cn


3. Other information

1)、The Company’s contact information

Whether there is any change for the Company‘s registered address, office address, post code, website
and e-mail address during the report period.
□Available     V Not available
There is no any change for the Company‘s office address, post code, website and e-mail address
during the report period, please see 2014 annual report for more details.

2)、Information disclosure and filing Location

Whether there is any change for the information disclosure and filling location during the report

                                                                                                                             5
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period.
□Available     V Not available
There is no any change for the newspapers in which the Company‘s information is disclosed, website
assigned by CSRC to carry the semi-annual report and the filing location during the report period,
please see 2014 annual report for more details.

3)、Registration changes

Whether there is any change for the registration during the report period.
□Available     V Not available
There is no any change for the company‘s registration date & place, business License No., tax
registration No. and organization code during the report period, please see 2014 annual report for
more details.




                                                                                                              6
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        III、 Summary of Accounting Data and Financial Indicators

1. Key accounting data and financial indicators

Whether the Company makes retroactive adjustments or restates the accounting data of previous
fiscal 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)                   2,825,793,250.00          2,301,990,248.00                    22.75%

Net profit attributed to the
shareholders of the listed                 746,060,248.00            638,041,311.00                    16.93%
company (CNY)
Net profit attributed to the
shareholders of the listed                 739,432,003.00            629,900,854.00                    17.39%
company after deducting the
irregular profit and loss (CNY)
Net cash flows from the
                                           927,163,060.00            889,675,131.00                     4.21%
operating activities (CNY)
Basic earnings (CNY) per share                       1.09                      0.93                    17.20%

Diluted earnings (CNY) per
                                                     1.09                      0.93                    17.20%
share
Return on net assets (%)                          10.11%                     9.77%                      0.34%

                                   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)                       9,379,910,798.00          8,912,232,640.00                     5.25%

Net Assets attributed to the
shareholders of the listed               7,582,367,402.00          6,840,452,145.00                    10.85%
company (CNY)

2. Accounting data difference between domestic and foreign accounting standards

1)、Difference in net profit and net asset disclosed in the financial report under the PRC accounting
standards and international accounting standards.

V Available    □Not available




                                                                                                                7
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Item             Net profit belonged to        Net asset belonged to
                 shareholders of listed        shareholders of listed
                 company                       company
                 Amount in       Amount in     Amount at the Amount at the
                 current         last period   end of this   beginning of
                 period                        period        this period
Based on
Chinese
                 746,060,248 638,041,311 7,582,367,402 6,840,452,145
accounting
standard
Items and amount adjusted based on international accounting standard

Based on
international
              746,060,248 638,041,311 7,582,367,402 6,840,452,145
accounting
standard



2)、Difference in net profit and net asset disclosed in the financial report under the PRC accounting
standards and foreign accounting standards.

□Available       V Not available

There is no difference in net profit and net asset disclosed in the financial report under the PRC
accounting standards and foreign accounting standards during the report period.

3)、Explanation of difference in accounting data based on Chinese and international accounting standards


□Available       V Not available

3. Details of irregular profit and loss

V Available       □Not available

                                                                                                        Unit: CNY

                          Item                               Amount                      Explanation
Gain on disposal of non-current assets, including
                                                              1,421.00
the reversal of accrued impairment provision
Government grants credited in profit and loss
(except for those recurring government grants               6,527,952.00
that are closely related to the entity's operation,


                                                                                                                 8
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in line with related regulations and have proper
basis of calculation)
    Other non-operating expense and income                1,913,510.00

              Less: Income tax effect                     1,814,638.00

                       Total                              6,628,245.00                        -
The reasons shall be made clear and definitely as to the non-recurring profit and loss that the Company
has defined by virtue of the Explanatory Announcement on Public Company‘s Information Disclosure
No.1 - Non-recurring Profit and Loss and as to regarding the non-recurring profit and loss as recurrent
profit and loss as specified in the Explanatory Announcement on Public Company‘s Information
Disclosure No.1 - Non-recurring Profit and Loss.
□Available     V Not available
There is no situation regarding the non-recurring profit and loss as defined and specified in the
Explanatory Announcement on Public Company‘s Information Disclosure No.1 - Non-recurring
Profit and Loss as recurrent profit and loss.




                                                                                                               9
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                            IV、Board of Directors’ Report

1. Summarization
During the report period, the need for high-end products in domestic wine industry was still weak, but
the consumer demand began to increase mildly in some regions; middle-and-low-end wines suitable for
the public kept favorable growth momentum. There was still strong competition existing in domestic
wine market. Facing quite a lot of external disadvantages, the Company insisted on focusing on the
market, adjusted marketing strategy and product structure, energetically developed middle-and-low-end
products, optimized market layout, perfected market channels and promoted sales of products with all
strength, preliminarily reversing the unfavorable tide about the decline of sales revenue and net profit,
and respectively accomplishing the sales revenue of CNY2825.79million with a year-on-year increase of
22.75% and net profit of CNY746.06million with a year-on-year increase of 16.93%.

2. Analysis to main business

Period comparison of main financial data
                                                                                                           Unit: CNY
                                  In the same               More
                    In the report
                                  period of last            or less Reason for changes
                    period
                                  year                      (%)
                                                                      Mainly increased sales volume of
Operating revenue    2,825,793,250.00   2,301,990,248.00     22.75%
                                                                      products
                                                                      Mainly increased sales volume of
Operating cost         932,522,743.00    754,302,386.00      23.63%
                                                                      products
                                                                      Mainly increased advertising expense,
Sales expense          653,425,516.00    486,481,030.00      34.32% storage  charge and salary of sales
                                                                      personnel

Management                                                            Mainly increased salary of management,
                       119,770,340.00    103,980,497.00      15.19% administrative   expense, depreciation cost,
expense                                                               building tax and other taxes
                                                                      Mainly declined interest income of bank
Financial expense       -3,880,903.00      -14,254,385.00    72.77% deposit  and increased interest expenditure
                                                                      of bank loan
Income tax                                                            Mainly increase net profit on
                       245,727,101.00    210,241,876.00      16.88%
expense                                                               year-on-year basis
R&D investment           5,534,562.00       5,436,054.00      1.81%

Net amount of          927,163,060.00    889,675,131.00       4.21%   Mainly increased cash received by


                                                                                                                      10
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cash flow                                                            products sales on year-on-year basis

generated in
operating activities
Net amount of
                                                                   Mainly declined cash inflow generated by
cash flow                                                          investment activities including
                                                                   withdrawal of fixed time deposit and
generated in           -432,181,002.00   -240,974,464.00   -79.35%
                                                                   increased cash outflow generated by
investment                                                         investment activities including purchase
                                                                   and building of fixed assets
activities
Net amount of
cash flow
                        -23,919,692.00
generated in
financing activities




Net increased
amount of cash                                                       Mainly declined net amount of cash flow
                        470,554,249.00   648,662,711.00    -27.46%
and cash                                                             generated by investment activities
equivalents




Whether there is any great change for the Company’s profit structure or profit source during the report
period
□Available      V Not available
There is no great change for the Company‘s profit structure or profit source during the report period.


Whether there is any future development and planning disclosed in the public Company’s shares prospectus,
collecting prospectus and asset restructuring report during the report period.
□Available      V Not available
The Company does not disclose any future development and planning in the public Company‘s
shares 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’s


                                                                                                                    11
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business plan disclosed in earlier stage


Firstly, the Company insisted on focusing on the market and conducted the marketing work with all
strength in order to strengthen the marketing capability. The company further perfected the
marketing system and evaluation method of chateau wines and defined the person responsible for the
marketing of chateau wines; strengthened the degree of media publicity and market expansion for
middle-and-low-end brands, such as Jiebaina, Zuishixian and Noble Rot and so on, improving the
competition in wine market; quickened the construction of brandy extension system, preliminarily
building the brandy marketing system that covered main cities in China; implemented the strategy of
multiple level and multiple brand for brandy, forming four brandy brands containing Franllet Cognac,
Lormin, Koyac and Gold Medal; quickened the construction work of Pioneer franchised stores and
recruitment work of shop managers, and optimized evaluation and motivation system to Pioneer
franchised stores, contributing to the benign development of Pioneer franchised stores.


Secondly, the Company continue promoting informatization construction and management
innovation. Based on the completion of the first and second phase of SAP system, the Company
proceeded the construction of the third phase of SAP system, further improving the Company‘s
informatization level; proposed and implemented more than 180 innovation and rationalization
projects, preferably solving the significant problems involved in management, production,
technology and marketing and improving the operating efficiency.


Thirdly, the Company reinforced the management of main production cost and expense to lower
production cost. The Company continued adopting centralized purchasing , effectively controlling
the procurement cost for large amounts of raw materials; strengthened the monitoring and scheduling
management of the stock and perfected production target, decreasing the occupation of funds and
loss of inventory and satisfying market demands; further strengthened the management in product
labeling and comprehensively implemented the palletization operation during the production, storage
and transportation process, improving logistics efficiency , saving package cost and lowering rate of
breakage products; optimized the salary distribution system based on per ton and perfected
performance assessment method of employee, improving the production efficiency; intensified the
management of important expenses, such as fuel and power cost, transportation expense, repair
charge and greening fee and so on, lowering the production cost.


Fourthly, the Company strengthened the construction and management in grape bases to improve the
quality of grapes. The Company conducted the construction and management in accordance with the
requirements of ―Scalization, Standardization and Mechanization ‖; imported and applied foreign
advanced and mechanized production equipments, assimilated advanced planting technology,


                                                                                                             12
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perfected the project management , budget management and evaluation system of grape bases and
strengthened the assessment and management system of people in charge of bases, effectively
lowering the planting cost, improving the grape quality and meeting the demands in adjusting
product structure.


During the second half year of 2015, the Company will mainly fulfill the following work and measures:


Firstly, the Company will keep focusing on the marketing work of chateau wines, perfect the distributor
layout and strive to break the sales bottleneck; keep consolidating the market share of Jiebaina; keep
reinforcing the degree of market development and promotion of Zuishixian and Noble Rot in order to
increase market share and achieve sales growth; adopt the way of using the minority to bring along the
majority to conduct priority exploitation in brandy business of 155 cities and push brandy to national
market step by step through the guidance of marketing innovation, accomplishing the harmonious
development in multiple liquors.


Secondly, the Company will strictly implement the budget management as well as the centralized
purchasing in raw materials, further optimize pricing model for purchasing grapes, strengthen
management of marketing expenses and improve fund utilization rate, increasing enterprise revenue.


Thirdly, based on 2015Annual Capital Expenditure Plan, the Company will reasonably arrange the
project construction scheduling, steadily promote the construction of investment projects and strictly
conduct investment budget management, in order to assure quality of project and safety in construction,
laying a solid foundation for further improvement in production capacity and optimization of
productivity structure.


Fourthly, the Company will scientifically make grape procurement plans and implementation scheme,
organize and deploy resources all around, achieve the target for purchasing grapes with the guarantee of
both quality and quantity so as to assure the supply of sufficient and superior grapes.

3. Structure of main businesses

                                                                                                    Unit: CNY

                                                   Increase or           Increase or          Increase or
                                        Gross      decrease of           decrease of          decrease of
            Operating     Operating
                                        profit operating revenue operating cost               gross profit
             revenue         cost
                                         (%)      over the same        over the same        over the same
                                                  period of last       period of last        period of last

                                                                                                             13
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                                                      year (%)              year (%)                year

Sector

Wine and
alcoholic   2,822,557,981 929,890,756 67.06% 22.98%                    24.26%                -0.34%
beverages

Product

Wine        2,202,106,014 693,663,394 68.50% 24.75%                    25.29%                -0.13%

Brandy      518,662,041    177,544,632 65.77% 11.05%                   12.05%                -0.30%

Sparkling
                                                 12.66%                4.79%                 4.64%
wine        23,174,571     14,308,023 38.26%

Other       78,615,355     44,374,706 43.55% 85.55%                    96.52%                -3.15%

Region

Eastern
            2,432,997,278 792,452,902 67.43% 24.57%                    26.05%                -0.38%
Region

Middle
            267,578,497    95,220,813 64.41% 14.67%                    15.29%                -0.20%
Region

Western
            121,982,206    42,217,040 65.39% 12.28%                    13.82%                -0.47%
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, ―Changyu‖,
  ―Jiebaina‖ and ―AFIP‖ 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 Company‘s 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


                                                                                                              14
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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 Sha‘anxi, whose scales and structures have generally
met the Company‘s needs for development.
Fifthly, the Company has a great variety of products composed of all grades, its wine, brandy and
sparkling wine 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
① Situation for investment abroad
□Available    V Not available
During the report period, the company did not have investment abroad.

② Situation for holding equity of financial enterprises
□Available    V Not available
During the report period, the company did not hold any equity of financial enterprises.

③ Situation for security investment
□Available    V Not available
During the report period, there were no security investments.

④ Situation for holding equity of other listed companies
□Available    V Not available
During the report period, the company did not hold any equity of other listed companies.

2)、Trust management, derivatives investment and entrusted loans
① Situation for trust management
□Available    V Not available
During the report period, the company did not have trust management.

② Situation for derivatives investment
□Available    V Not available
During the report period, the company did not have derivatives investment.

③ Situation for entrusted loans

                                                                                                                    15
                                                                        Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


□Available    V Not available
During the report period, the company did not have entrusted loans.

3)、Use of raised capital
□Available    V Not available
During the report period, there were no use of raised capital.

4)、Analysis to the major subsidiaries and joint stock companies
V Available □Not available
Information about the major subsidiaries and joint stock companies
                                                                                                                            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 sell
Castel Wine
                       alcoholic     wine and          USD 5
Chateau Co. Subsidiary                                                     186,971,615 82,881,301 37,153,833 1,050,745        787,674
LTD.                   beverages     sparkling wine as million
                         industry          well as the
                                           tourism service

Langfang                 Wine        and
Castel-
             Joint stock alcoholic         To produce and USD
Changyu Wine                                                               53,178,532 45,020,437 27,859,048 600,032           456,864
             company beverages             sell wine      6,108,818
Co. LTD.
                         industry

Beijing       Subsidiary Wine        and
Chateau                                    To research,
                         alcoholic                            CNY 110
Changyu                                    produce and sell                689,592,345 114,023,470 75,082,711 12,225,858 8,118,305
                         beverages                            million
AFIP Global                                brandy and wine
                         industry

Chateau       Subsidiary Wine      and
Liaoning
                         alcoholic     To produce ice         CNY 26.30
Changyu Ice                                                                90,741,480 62,178,949 27,030,519 899,959           715,756
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               176,872,584 164,153,706 65,111,307 712,678         643,354
Ltd.                   beverages                             million
                                           wine and fruit
                       industry            wine

5)、Important projects financed with non-raised capital
V Available        □Not available


                                                                                                                            Unit: CNY‘0000


                                                                                                                                     16
                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                                                 Actual                                       Disclosure
                                   Total                      accumulation                                       Date
                                             Investment
                                  Planned                      investment     Project
          Project Name                       in the report                                 Project benefits
                                  Investme                    until the end   progress
                                             period
                                     nt                       of the report
                                                                 period

Construction of Changyu                                                                  Facilities have been 2014.04.26
                                    31,074            6,372          38,027     98.00% completed and put
Reina Chateau Sha'anxi                                                                   into production.

                                                                                         Facilities have been 2014.04.26
Construction of Chateau
                                    24,415             297           30,800     99.00% completed and put
Moser XV Ningxia
                                                                                         into production.

                                                                                         Facilities have been 2014.04.26
Construction of Changyu
                                    23,343             903           32,000     99.00% completed and put
Baron Balboa Chateau XinJiang
                                                                                         into production.

Construction of                                                                                               2014.04.26
Changyu International Wine City     65,331         20,127            60,990     75.00% 0
blending and cooling Center
                                                                                                                           http://www.c
Construction of                                                                                               2014.04.26
                                                                                                                           ninfo.com.c
Changyu International Wine City     46,736         14,089            43,258     75.00% 0
                                                                                                                           n/finalpage/
Bottling Center
                                                                                                                           2014-04-26/
Construction of                                                                                               2014.04.26
                                                                                                                           63928624.P
Changyu International Wine          12,095            6,038          17,382     90.00% 0                                   DF

City Logistics Center

Construction of Changyu Vine                                                                                  2014.04.26
                                    20,000             987            5,069     25.00% 0
and Wine Research Institute

Construction of Treasure Wine                                                                                 2014.04.26
                                    14,545             600            3,678     25.00% 0
Chateau
Construction of Koyac Brandy
                                    16,530                0           9,800     50.00%
Chateau

Investment in landscaping            5,000             405            4,095     75.00% 0                      2014.04.26

Construction of pioneer                                                                                       2014.04.26
                                    10,000            5,014           6,769     60.00% 0
franchised store

              Total                269,069         54,832          251,868       --               --


6. Forecast for the operation achievements from January to September of 2015

Caution and explanation for the prediction that the cumulative net profit from the beginning of the
year to the end of next report period could be in a loss or there will be in a great change comparing
with the same period of last year.

                                                                                                                                 17
                                                        Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


□Available      V Not available

7. Explanation from the board of directors and the board of supervisors for the “Non-standard Audit
Report” issued by the accountant firm

□Available     V Not available

8. Explanation from the board of directors for the “Non-standard Audit Report” of last year

□Available      V Not available

9. Implementation of profit distribution during the report period

The implementation or adjustment for the profit distribution policies during the report period,
especially the cash dividend plan and the scheme of increasing equity with capital reserve.
V Available □Not available
On July 5, 2015, the Company disclosed the Announcement of Dividend Distribution for the year
2014, according to which the Company would take the total capital stock 685,464,000 shares at that
time as a cardinal number to distribute CNY 4.4 in cash for per 10 shares to all stockholders (tax
included. After deduction of taxes, as to Stock A, QFII, RQFII as well as the individuals holding the
restricted reform-related shares and the restricted new shares and the investment fund holders would
enjoy CNY 3.96 per 10 shares. The differential dividend tax rates would be adopted for the
individuals holding the non-restricted reform-related shares, the non-restricted new shares and the
unlimited shares and the investment fund holders, CNY 4.18 for per 10 shares in advance and
afterwards depending on the investors‘ reduction of shares, making up the difference according to
the actual shares held on the equity registration day. As to the non-resident enterprises other than
QFII and RQFII, the Company would neither withhold nor pay the income tax on their behalf but the
taxpayers should pay the tax in the place where the income is received. As to Stock B, the
non-resident enterprises would enjoy cash dividend CNY 3.96 for per 10 shares. The differential
dividend tax rates would be adopted for the inland (overseas) individual stockholders, CNY 4.18 for
per 10 shares in advance and afterwards depending on the investors‘ reduction of shares, making up
the difference according to the actual shares held on the equity registration day.)
The share registration day of A Stock was on July 10, 2015 and the ex-dividend day was on July 13,
2015.
The last trading day of B Stock was on July 10, 2015, the share registration day was on July 15, 2015
and the ex-dividend day was on July 13, 2015.
The cash dividend for Stock A holders that the company entrusted China Securities Depository and
Clearing Corporation Limited Shenzhen Company to distribute was directly transferred to their accounts
via securities service company (or other depository department) on July 13, 2015. The cash dividend for
Stock B holders was directly transferred to their accounts via securities service company or other

                                                                                                                 18
                                                                         Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


depository department on July 15, 2015. The cash dividend enjoyed by Yantai Changyu Group Co., Ltd.
was directly paid by the Company at the same time.

                                                             Special explanation

Whether it is in accordance with the requirements of the regulation in the Articles of Association and the resolution of Yes
shareholders

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.                                        Yes

Whether the small and middle shareholders have the chance to express their advices and appeals, as well as their lawful Yes
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
distribution policy.




10. Preliminary schemes of profit dividend and increasing equity with capital reserve during the report
period

□Available            V Not available
There is no schemes of paying cash dividend, bonus share and increasing equity with capital during the
semi-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

                                                                                                            current business
                       Meeting                                 Mr. Zhanglong from Essence Security
                                                                                                            operation
2015.05.22             room of the   Field survey Institution Company Limited and Mr. Ke Haidong from
                                                                                                            situation and
                       Company                                 Guo Tai Jun‘an Securities Company Limited
                                                                                                            other issues




                                                                                                                                    19
                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




                                       V、Major Issues

1. Corporate Governance Situation of the Company

The Company has according to relevant national laws and rules including the ―Company Law of the
People’s Republic of China‖, ―Securities Law of the People’s Republic of China” , ―Guidelines on
Corporate Governance of Listed Companies‖, and also other laws and rules , established and constantly
improved its legal entity structure, legally conducted its activities. Currently, the Company‘s corporate
governance is in compliance with the Company Law and the relevant provisions of China Securities
Regulatory Commission.

2. Litigation Issue

Material litigation and arbitration
□ available        √not available
There are no material litigation and arbitration during the report period.
Other Litigation Issue
□ available        √not available

3. Media’s doubts

□ available     √not available
There are no common doubts issued by Media during the report period.

4. Bankruptcy reorganization

□ available       √not available
There are no related issues of bankruptcy reorganization happened during the report period and until
the report period.

5. Transaction in Assets

1)、Acquisition of assets
□ available       √not available
There is no acquisition of assets during the report period and until the report period.
2)、 Assets for sale
□ available       √not available
There are no assets for sale during the report period and until the report period.
3)、Business merger
□ available      √not available
There are no business merger happened in the report period and until the report period.


                                                                                                               20
                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


6. Implementations and influences of Company’s equity incentive

□ available      √not available
There are no plans and implementations of Company‘s equity incentive during the report period.




                                                                                                            21
                                                                                                                                                                           Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




           7. Important related transactions

           1)、Related transactions in relation to routine operations
           √available             □not available

                                                                                                       Proportio Approved            Whether                  Market
                                                             Pricing                      Amount                                                 Settlemen
                                                Content                   Price      of                n in the transaction          or    not                 price of
                               Type        of                principle                    of related                                             t method
Related                                         of related                related                      same kind credit(CNY‘000 exceed                        securabl
           Interrelationship   related                       of related                   transactio                                             of related                Date of disclosure         Disclosure index
party                                           transactio                transactio                   of            0)              approve                   e same
                               transaction                   transactio                   n   (CNY                                               transactio
                                                n                         n                            transactio                    d credit                  transacti
                                                             n                            0000)                                                  n
                                                                                                       n (%)                                                   on
Yantai     Under    the   same Purchasing Purchasin On                the Agreeme
Shenma Parent Co.              and              g packing base         of nt price
Packagin                       Consign          materials market
                                                                                              8,243         21.82%          19,000         No Cash            —           2015.04.28
g Co.Ltd                       processing                    price,
                               packing                       negotiate
                               materials                     d pricing
Yantai     Under    the   same Purchasing Purchasin On the                Agreeme
                                                                                                                                                                                                      http://www.cninfo.com.cn/informat
Changyu Parent Co.             commoditie g         liquor base of        nt price
                                                                                                                                                                                                      ion/companyinfo.html
Zhongya                        s                products     market
Medicine                                                     price,
                                                                                                247         0.65%             550         No. Cash            —           2015.04.28
&                                                            negotiate
Healthy                                                      d pricing
Liquors
Co., Ltd
Yantai     Under    the   same Purchasing Purchasin On                the Agreeme
                                                                                                349         0.92%             100                Cash         —           2015.04.28
Changyu Parent Co.             commoditie g         liquor base        of nt price                                                        Yes.


                                                                                                                                                                                                                                    22
                                                                                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Wine                          s          products‘ market
Culture                                  derivative price,
Museum                                   s          negotiate
Compan                                              d pricing
y
Yantai     Under   the   same Purchasing Purchasin On        the Agreeme
Changyu Parent Co.            commoditie g   liquor base     of nt price
Window                        s          products‘ market                                       No.
                                                                            24   0.06%    450          Cash   —   2015.04.28
of Wine                                  derivative price,
City Co.                                 s          negotiate
                                                    d pricing
Yantai     Under   the   same Selling    Selling    On       the Agreeme                         No.
Changyu Parent Co.            commoditie liquor     base     of nt price
Wine                          s          products   market
Culture                                             price,                 419   0.15%   1,100         Cash   —   2015.04.28
Museum                                              negotiate
Compan                                              d pricing
y
Yantai     Under   the   same Selling    Selling    On       the Agreeme                         No.
Changyu Parent Co.            commoditie liquor     base     of nt price
Window                        s          products   market
                                                                           371   0.13%    780          Cash   —   2015.04.28
of Wine                                             price,
City Co.                                            negotiate
                                                    d pricing
Yantai     Under   the   same Selling    Selling    On       the Agreeme                         No.
Changyu Parent Co.            commoditie liquor     base     of nt price
                                                                            75   0.03%    270          Cash   —   2015.04.28
Zhongya                       s          products   market
Medicine                                            price,



                                                                                                                                                                            23
                                                                                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


&                                                     negotiate
Healthy                                               d pricing
Liquors
Co., Ltd
Yantai      Under   the   same Selling      Supplying On       the Agreeme
Shenma Parent Co.              commoditie water,      base     of nt price
Packagin                       s            power and market
                                                                                3   0.00%     200
g Co.Ltd.                                   gas       price,
                                                      negotiate
                                                      d pricing
Yantai      Parent Co.         Leased       Leasing   On       the Agreeme                           No.
Changyu                        assets       storage   base     of nt price
Group                                                 market
                                                                              293   0.78%     586          Cash   —   2015.04.28
Co. Ltd.                                              price,
                                                      negotiate
                                                      d pricing
Yantai      Parent Co.         Intangible   Permissio On       the Agreeme                           No.
Changyu                        assets       n to use base      of nt price
Group                          licensed     the       market
                                                                             5,257 100.00%   9,000         Cash   —   2015.04.28
Co. Ltd.                       use          trademark price,
                                                      negotiate
                                                      d pricing
Yantai      Parent Co.         Intangible   Permissio On       the Agreeme                           No.
Changyu                        assets       n to use base      of nt price
Group                          licensed     patents   market
                                                                              2.5 100.00%       5          Cash   —   2015.04.28
Co. Ltd.                       use                    price,
                                                      negotiate
                                                      d pricing



                                                                                                                                                                                24
                                                                                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Total                                                           15,283.5 —      32,041     --        --       --   --                         --
The details of the large sales returns                 No.
The total amount of the transaction will be expected No.
according to its category and its actual performance
during the report period (if have)
The     reasons   of big differences     between   the No.
transaction price and the market reference price(if
available )

          2)、 Related transactions in asset procurement and sale
          □ available       √not available
          There are no related transactions in asset procurement and sale during the report period.
          3)、Important related transactions in joint external investment
          □ available     √not available
          There are no important related transactions in joint external investment during the report period.
          4)、Record of related credits and liabilities
          □ available       √not available
          There is no record of non-operating related credits and liabilities.
          5)、Other important related transactions
          □ available               √not available
          There are no other important related transactions in the report period.




                                                                                                                                                                             25
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


8. Controlling shareholder and related party in funds occupation situation of non-operating of
the Listed Company

□ available       √not available
There are no situation in controlling shareholder and related party in funds occupation of
non-operating of the Listed Company.

9. Major and important contracts and execution results

1)、Trusteeship, contract and leasehold issues
① Trusteeship situation
□ available       √not available
There are no trusteeships happened during the report period
② Contract situation
√available      □not available
The explanation of Contract situation
Yantai Changyu-Castel Wine Chateau Co., Ltd. is a Sino-foreign joint venture established by the
Company and a foreign investor. According to the contract operation agreement signed by the
Company and the foreign investor, the Company uses the form of paying the contract fee and has the
full power to control its strategic operating, investing and financing policies. The agreement will be
terminated on 31st December 2022.

Langfang Castel-Changyu Wine Co., Ltd. is a Sino-foreign joint venture established by the Company
and a foreign investor. According to the contract operation agreement signed by the Company and
the foreign investor, the Company uses the form of paying the contract fee and has the full power to
control its strategic operating, investing and financing policies. The agreement will be terminated
on 31st December 2022.

Chateau Changyu AFIP Global Co., Ltd. is a Sino-foreign joint venture established by the Company
and a domestic investor. According to the contract operation agreement signed by the Company and
the foreign investor, the Company uses the form of paying the contract fee and has the full power to
control its strategic operating, investing and financing policies. The agreement will be terminated
on 2nd September 2019.

Chateau Liaoning Changyu Ice Wine Co., Ltd. is a Sino-foreign joint venture established by the
Company and a foreign investor. According to the contract operation agreement signed by the
Company and the foreign investor, the Company uses the form of paying the contract fee and has the
full power to control its strategic operating, investing and financing policies. The agreement will be
terminated on 31st December, 2016.

Beijing Changyu AFIP tourist culture Co., Ltd. is a Sino-foreign joint venture established by the
Company and a domestic investor. According to the contract operation agreement signed by the


                                                                                                             26
                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Company and the foreign investor, the Company uses the form of paying the contract fee and has the
full power to control its strategic operating, investing and financing policies. The agreement will be
terminated on 2th September 2019.

Project in gains and losses for the Company to achieve more than 10% of the total profit
□ Available √ Not Available
There are no contract projects in gains and losses for the Company to achieve more than 10% of the
total profit during the report period.

③Leasehold situation explanation
√available      □not available
     st
On 1 January 2012, the Company renewed the Space Lease Agreement with the controlling
shareholder Changyu Group, the Company leased the space with 57749.77 square meters located at
174 Shihuiyao Road, Zhifu District,Yantai City and the space with 3038 square meters located at 56
Dama Road, Zhifu District, Yantai City, which are all under the name of controlling shareholder. The
rent of the above spaces per year is CNY 5.858 million with a period of 5 years from 1st January
2012 to 31st December 2016.

Project in gains and losses for the Company to achieve more than 10% of the total profit
□ Available √ Not Available
There are no leasehold projects in gains and losses for the Company to achieve more than 10% of the
total profit during the report period.
2)、Guarantee situation
□ available      √not available
There are no guarantees situation during the report period.
3)、 Other important contracts
□ available       √not available
There are no other important contracts during the report period.
4)、 Other substantial transaction
□ available       √not available
There 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

Commitments at share reform    -                -


                                                                                                               27
                                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Commitments made in acquisition
                                     -                -                                                         -         -
report or equity changes report

Commitments at asset restructuring -                  -                                                         -         -

                                     Yantai Changyu                                                                       Has been
                                                      Non Intra-industry competition               1997.05.18   Forever
                                     Group Co, Ltd                                                                        performed

                                                      According to "Trademark License Contract",
                                                      the Company will pay trademark royalty for
Commitments at the initial public
                                                      the "Changyu"products of Yantai Changyu
offering or refinancing              Yantai Changyu                                                                       Has been
                                                      Group Co., Ltd every year, Yantai Changyu 1997.05.18      Forever
                                     Group Co., Ltd                                                                       performed
                                                      Group Co., Ltd will use trademark to
                                                      advertise Changyu trademarks and the
                                                      Contract products.



Commitments made to the minority
                                     -                -                                                         -         -
shareholders of the Company

Commitment under timely
                                     Yes
implementation or not

Specific reasons of not completing
the implementation and the next      No
step


11. The appointment and dismissal of certified public accountants

Whether or not semi-annual financial report has been audited.
□Yes    √ No
The semi-annual financial report has not been audited.

 12. Punishment and rectification

□ available √ not available
There is no punishment and rectification situation happened during the report period.

13. Withdrawal risk revelation of violating laws and rules

□ available √ not available
There is no withdrawal risk revelation of violating laws and rules during the report period.

14. Explanation for other significant matters

□ available √ not available
There are no other significant matters during the report period.


                                                                                                                               28
                                                               Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




         VI、Changes in Shares and the Shareholders’ Situation

1. 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 available
Approval of stock change
□ available √ not available
Transfer of changed shares
□ available √ not available
The influence of stock change on the financial indicators such as basic earnings per share, diluted
earnings per share of the latest year and the latest period, net asset per share belonging to the
Company‘s common stock holders, etc..
□available   √not available
Other contents which the Company thinks necessarily or securities regulatory departments claim to
disclose.
□available   √not available
Changes situation in the Company‘s total shares, structure of shareholders, the Company‘s assets and
liabilities
□available   √not available




                                                                                                                                29
                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




2. The number of shareholders of the Company and the shareholdings

Unit: share

                                                                                             Total number of
                                                                                             preferred
                                                                                             shareholder
Total common shareholders at the end of
                                              38,450                                         recovering                  0
report period
                                                                                             voting power at the
                                                                                             end of report period (if
                                                                                             have) (See note 8))

                                    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

                                        Domestic
YANTAI CHANGYU GROUP CO.
                                        non-state-owned 50.40% 345,473,856 0                         0     345,473,856                                0
LTD.
                                        legal person

                                        Foreign
GAOLING FUND,L.P.                                           3.11% 21,300,919 -2,876,078              0      21,300,919                                0
                                        shareholder

BBH BOS S/A FIDELITY FD - Foreign
                                                            2.27% 15,576,126 -530,200                0      15,576,126                                0
CHINA FOCUS FD                          shareholder

GREENWOODS          CHINA ALPHA Foreign
                                                            1.04%     7,117,471 7,117,471            0       7,117,471                                0
MASTER FUND                             shareholder

MORGAN          STANLEY       &    CO. Foreign
                                                            0.76%     5,221,972 2,260,964            0       5,221,972                                0
INTERNATIONAL PLC                       shareholder

                                        Foreign
NORGES BANK                                                 0.66%     4,511,246 0                    0       4,511,246                                0
                                        shareholder

VALUE           PARTNERS        CHINA Foreign
                                                            0.61%     4,201,626 4,201,626            0       4,201,626                                0
GREENCHIP FUND LTD                      shareholder

                                        Foreign
GIC PRIVATE LIMITED                                         0.59%     4,056,859 -5,856,625           0       4,056,859                                0
                                        shareholder

BBH A/C VANGUARD EMERGING Foreign
                                                            0.57%     3,888,887 -62,100              0       3,888,887                                0
MARKETS STOCK INDEX FUND                shareholder

Tian‘an Property insurance CO.,
                                        Others              0.56%     3,828,575 3,828,575            0       3,828,575                                0
LTD—Baoying       No. 1

Strategic investors or legal result of the placement of
                                                          No
new shares to become a top 10 shareholders(if have)(see


                                                                                                                                            30
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


note3)

                                                              Among the top 10 shareholders, Yantai Changyu Group Company Limited has no
The explanation for the associated relationship and
                                                              associated relationship or accordant action relationship with the other 9 listed
accordant action of the top 10 shareholders
                                                              shareholders, and the relationship among the other shareholders is unknown.

                                              The top 10 shareholders with unrestricted shares

                                                                                             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.                                                                              21,300,919 B share                       21,300,919

BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                                       15,576,126 B share                       15,576,126

GREENWOODS CHINA ALPHA MASTER FUND                                                               7,117,471 B share                       7,117,471

MORGAN STANLEY & CO. INTERNATIONAL PLC                                                           5,221,972 B share                       5,221,972

NORGES BANK                                                                                      4,511,246 B share                       4,511,246

VALUE PARTNERS CHINA GREENCHIP FUND LTD                                                          4,201,626 B share                       4,201,626

GIC PRIVATE LIMITED                                                                              4,056,859 B share                       4,056,859

BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND                                               3,888,887 B share                       3,888,887

Tian‘an Property insurance CO., LTD—Baoying         No. 1                                      3,828,575 A share                       3,828,575

                                                                                          Among the top 10 shareholders, Yantai Changyu
The explanation for the associated relationship and accordant action of the top 10
                                                                                          Group Company Limited has no associated
shareholders with unrestricted shares, the the associated relationship and accordant
                                                                                          relationship or accordant action relationship with the
action between the top 10 shareholders with unrestricted shares and the top 10
                                                                                          other 9 listed shareholders, and the relationship
shareholders
                                                                                          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 (if have)(see Note4)                                               activities and stock trading business.



Whether or not to be agreed to buy back trading by Company shareholders during the report period
□ Yes √ No
There is no agreed to buy back trading by Company shareholders during the report period.

3. Controlling shareholder or changes of the actual controllers situation

Changes of the controlling shareholder during the report period
□ available    √ not available
There is no any change of the controlling shareholder during the report period.
Changes of the actual controllers during the report period
□ available    √ not available

                                                                                                                                              31
                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


There is no any Change of the actual controllers during the report period

4. Company’s shareholders and Consistent behavior person offer or carry out the plan of
increasing rights issue during the period.

□ available    √ not available

In the context of Company known, Company‘s shareholders and Consistent behavior person did not
offer or carry out the plan of increasing rights issue during the period.




                                                                                                             32
                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




                  VII、elative situation for preferred Shares


□ available    √ not available
There is no preferred shares during the report period.




                                                                                                              33
                                                  Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report



VIII、Situation for Directors, Supervisors, Senior Management

1. Changes in shareholdings of directors, supervisors and senior management

 □ available     √ not available
There are no any change in shareholdings of directors, supervisors and senior management during
the report period, details see 2014 annual report

2. Personnel changes in Company's directors, supervisors and senior management

□ available   √ not available

There are no any personnel changes in Company‘s directors, supervisors and senior management
during the report period, details see 2014 annual report.




                                                                                                           34
                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




                                                 IX、Financial Report

1. Audit report

Whether the semi-annual report has been audited
  □ Yes √ No
The semi-annual report has not been audited.

2. Financial statement

The unit in the statement of the financial annotations is RMB Yuan.

2.1 Consolidated balance sheet

Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.                                            Unit: Yuan
                                          Item                                  Note    Ending balance      Beginning balance
    Current assets:
    Monetary fund                                                               7.1         1,586,965,072       1,145,365,071
    Settlement provisions
    Lending funds
    Financial assets measured at the fair value and the variation of which is
    recorded into the current profit and loss
    Derivative financial assets
    Bills receivable                                                            7.2          335,703,960         138,315,319
    Accounts receivables                                                        7.3          130,804,645         145,672,411
    Advances to suppliers                                                       7.4             1,862,640           8,073,786
    Premium receivable
    Reinsurance accounts receivable
    Receivable reserves for reinsurance contract
    Interest receivable                                                         7.5             5,730,457           3,619,429
    Dividends receivable
    Other receivables                                                           7.6            46,530,335          31,362,302
    Buy-in/sell-out financial assets
    Inventories                                                                 7.7         1,493,395,591       2,087,376,398
    Assets classified as holding and available for sale
    Non-current asset expire in a year
    Other current assets                                                                       33,783,630          29,662,076
    Total current assets                                                                    3,634,776,330       3,589,446,792
    Non-current assets:
    Offering loans and imprest
    Available for sale financial assets                                         7.8
    Held-to-maturity investment
    Long-term receivables
    Long-term equity investments


                                                                                                                                35
                                                                  Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                     Item                                     Note   Ending balance      Beginning balance
Investment real estate
Fixed assets                                                                  7.9        2,502,989,532       2,532,682,355
Construction in progress                                                      7.10       2,149,336,789       1,700,466,500
Construction materials
Fixed assets disposal
Productive biological assets                                                  7.11        174,987,484         151,723,241
Oil and gas assets
Intangible assets                                                             7.12        453,157,229         452,951,194
Development expenditure
Goodwill                                                                      7.13          13,112,525          13,112,525
Long-term prepaid expense                                                     7.14        213,710,601         201,911,605
Deferred tax assets                                                           7.15        222,088,703         254,186,823
Other non-current assets                                                      7.16          15,751,605          15,751,605
Total non-current assets                                                                 5,745,134,468       5,322,785,848
Total assets                                                                             9,379,910,798       8,912,232,640
Current liabilities:
Short-term loan                                                               7.17        300,000,000         300,000,000
Borrowings from the Central Bank
Customer and interbank deposits
Borrowing funds
Financial liabilities measured at the fair value and the variation of which
is recorded into the current profit and loss
Derivative financial liabilities
Bills payable                                                                 7.18                              10,000,000
Accounts payables                                                             7.19        126,564,586         357,811,822
Advances from customers                                                       7.20        248,266,622         215,127,598
Sales/buyback financial assets
Payable handling fees and commission
Employee benefits                                                             7.21        120,755,414         158,948,592
Taxes payable                                                                 7.22         -33,897,202          87,504,048
Interest payable                                                              7.23           5,891,499           3,475,641
Dividends payable
Other payables                                                                7.24        583,730,704         469,804,317
Dividend payable for reinsurance
Reserves for insurance contracts
Acting trading securities
Acting underwriting securities
Liabilities classified as holding and available for sale
Non-current liability expire in a year
Other current liabilities                                                     7.25          12,398,717          12,398,718
Total current liabilities                                                                1,363,710,340       1,615,070,736
Non-current liabilities:
Long-term borrowings                                                          7.26        188,566,200         209,380,000
Bonds payable
 Including: Preferred stock
               Perpetual capital securities
Long-term accounts payable


                                                                                                                             36
                                                                 Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                        Item                               Note     Ending balance      Beginning balance
    Long-term employee compensation payable
    Special accounts payable
    Estimated liabilities
    Deferred income                                                        7.27            74,015,234          76,024,992
    Deferred tax liabilities                                                                4,512,491           4,565,636
    Other non-current liabilities                                          7.28             3,998,352           3,998,352
    Total non-current liabilities                                                        271,092,277         293,968,980
    Total liabilities                                                                   1,634,802,617       1,909,039,716
    Owner’s equity:
    Capital stock                                                          7.29          685,464,000         685,464,000
    Other equity instruments
    Including: Preferred stock
                Perpetual capital securities
    Capital surplus                                                        7.30          563,139,042         563,139,042
    Minus: treasury stock
    Other comprehensive income                                             7.31            -6,948,262          -2,803,271
    Special reserves
    Surplus reserve                                                        7.32          342,732,000         342,732,000
    General risk preparation
    Retained earnings                                                      7.33         5,997,980,622       5,251,920,374
    Total owner‘s equity of the parent company                                         7,582,367,402       6,840,452,145
    Minority shareholder interests                                                       162,740,779         162,740,779
    Total owner‘s equities                                                             7,745,108,181       7,003,192,924
    Total liabilities and owner‘s equities                                             9,379,910,798       8,912,232,640


The Legal Representative: Sun Liqiang             Accounting Supervisor: Leng Bin       Accounting Department Manager:
Jiang Jianxun




                                                                                                                            37
                                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


2.2 Balance sheet of the parent company

Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.                                               Unit: Yuan
                                          Item                                   Note     Ending balance      Beginning balance
    Current assets:
    Monetary fund                                                                              474,290,805         496,138,263
    Financial assets measured at the fair value and the variation of which is
    recorded into the current profit and loss
    Derivative financial assets
    Bills receivable                                                                           202,853,298           98,158,251
    Accounts receivables                                                         15.1              142,139            1,516,518
    Advances to suppliers                                                                          539,254            1,710,787
    Interest receivable                                                                           5,730,457           3,580,811
    Dividends receivable                                                                       350,004,131         402,596,884
    Other receivables                                                            15.2         4,417,682,191       4,708,836,276
    Inventories                                                                                762,860,931         681,696,774
    Assets classified as holding and available for sale
    Non-current asset expire in a year
    Other current assets                                                                         17,724,270          14,996,807
    Total current assets                                                                      6,231,827,476       6,409,231,371
    Non-current assets:
    Available for sale financial assets
    Held-to-maturity investment
    Long-term receivables
    Long-term equity investments                                                 15.3         1,093,087,027       1,093,437,027
    Investment real estate
    Fixed assets                                                                               385,985,776         403,210,655
    Construction in progress                                                                       297,988             182,765
    Construction materials
    Fixed assets disposal
    Productive biological assets                                                                 99,290,127          83,631,722
    Oil and gas assets
    Intangible assets                                                                            75,571,102          76,760,678
    Development expenditure
    Goodwill
    Long-term prepaid expense
    Deferred tax assets                                                                          16,745,491          27,053,571
    Other non-current assets
    Total non-current assets                                                                  1,670,977,511       1,684,276,418
    Total assets                                                                              7,902,804,987       8,093,507,789
    Current liabilities:
    Short-term loan                                                                            300,000,000         300,000,000
    Financial liabilities measured at the fair value and the variation of
    which is recorded into the current profit and loss
    Derivative financial liabilities
    Bills payable
    Accounts payables                                                                          227,589,429         228,052,722
    Advances from customers


                                                                                                                                  38
                                                                  Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                        Item                                Note     Ending balance      Beginning balance
    Employee benefits                                                                       54,840,098          70,233,251
    Taxes payable                                                                           -2,583,832          18,205,124
    Interest payable                                                                         5,891,499           3,475,641
    Dividends payable
    Other payables                                                                        837,015,610        1,030,604,819
    Liabilities classified as holding and available for sale
    Non-current liability expire in a year
    Other current liabilities                                                                3,017,898           3,017,898
    Total current liabilities                                                            1,425,770,702       1,653,589,455
    Non-current liabilities:
    Long-term borrowings                                                                  188,566,200         209,380,000
    Bonds payable
    Including: Preferred stock
                Perpetual capital securities
    Long-term accounts payable
    Long-term employee compensation payable
    Special accounts payable
    Estimated liabilities
    Deferred income                                                                         21,238,965          22,747,915
    Deferred tax liabilities
    Other non-current liabilities                                                            1,895,828           1,895,828
    Total non-current liabilities                                                          211,700,993        234,023,743
    Total liabilities                                                                    1,637,471,695       1,887,613,198
    Owner’s equity:
    Capital stock                                                                         685,464,000         685,464,000
    Other equity instruments
    Including: Preferred stock
                Perpetual capital securities
    Capital surplus                                                                       557,222,454         557,222,454
    Minus: treasury stock
    Other comprehensive income
    Special reserves
    Surplus reserve                                                                       342,732,000         342,732,000
    Retained earnings                                                                    4,679,914,838       4,620,476,137
    Total owner‘s equities                                                              6,265,333,292       6,205,894,591
    Total liabilities and owner‘s equities                                              7,902,804,987       8,093,507,789


The Legal Representative: Sun Liqiang              Accounting Supervisor: Leng Bin       Accounting Department Manager:
Jiang Jianxun




                                                                                                                             39
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


2.3 Consolidated profit statement

Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.                                                 Unit: Yuan
                                       Item                                     Note   Sum of current period Sum of prior period
    1. Revenue                                                                                2,825,793,250        2,301,990,248
    Including: Operating income                                                 7.34          2,825,793,250        2,301,990,248
                 Interest income
                 Earned premium
                 Handling fees and commission income
    2. Total operating costs                                                                  1,842,448,784        1,462,946,341
         Including: Operating costs                                             7.34            932,522,743          754,302,386
                  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                                          7.35            140,611,088          132,436,813
                  Selling expenses                                              7.36            653,425,516          486,481,030
                  Administrative expenses                                       7.37            119,770,340          103,980,497
                  Financial expenses                                            7.38              -3,880,903          -14,254,385
                  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 "-")                                               983,344,466          839,043,907
         Plus: Non-operating income                                             7.39              8,796,834            9,444,796
    Including: Gains on disposal of non-current assets                                                2,985
         Minus: Non-operating expenses                                          7.40                353,951              205,516
                  Including: Losses on disposal of non-current assets                                 1,564               10,897
    4. Total profits (total loss is listed with "-")                                            991,787,349          848,283,187
         Minus: Income taxes                                                    7.41            245,727,101          210,241,876
    5. Net profit (net loss is listed with "-")                                                 746,060,248          638,041,311
         Attributable to owner of the parent company                                            746,060,248          638,041,311
         Minority shareholder interests
    6. Net after-tax amount of other comprehensive income                       7.42              -4,144,991            -269,603
    Net after-tax amount of other comprehensive income attributable to
                                                                                                  -4,144,991            -269,603
    owner of the parent company
    6.1 Other comprehensive earnings not to be reclassified into profit
    and loss later
    6.1.1 Net liabilities or net assets change after remeasuring and
    resetting the benefit plans
    6.1.2 Share enjoyed in other comprehensive earnings not to be
    reclassified into profit and loss in invested unit under equity law
    6.2 Other comprehensive earnings to be reclassified into profit and                           -4,144,991            -269,603


                                                                                                                                    40
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


    loss later
    6.2.1 Share enjoyed in other comprehensive earnings to be
    reclassified into profit and loss in invested unit under equity law
    6.2.2 Profit and loss from changes in fair value of financial assets for
    sale
    6.2.3 Profit and loss from reclassification of held-to-maturity
    investment into fair value of financial assets for sale
    6.2.4 Effective part of profit and loss of cash-flow hedge
    6.2.5 Difference in translation of Foreign Currency Financial
                                                                                                  -4,144,991            -269,603
    Statement
    6.2.6 Others
    Net after-tax amount of other comprehensive income attributable to
    minority shareholders
    7. Total comprehensive income                                                               741,915,257          637,771,708
    (1) Attributable to owner of the parent company                                             741,915,257          637,771,708
    (2) Attributable to minority shareholders
    8. Earnings per share
    (1) Basic earnings per share                                                                        1.09                 0.93
    (2) Diluted earnings per share                                                                      1.09                 0.93


The Legal Representative: Sun Liqiang              Accounting Supervisor: Leng Bin               Accounting Department Manager:
Jiang Jianxun




                                                                                                                                    41
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


2.4 Profit statement of the parent company

Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.                                                 Unit: Yuan
                                       Item                                     Note   Sum of current period Sum of prior period
    1. Revenue                                                                  15.4            689,053,229          689,897,279
    Minus: Operating costs                                                      15.4            548,385,836          565,744,989
    Taxes and surcharges                                                                         75,959,486           75,738,343
    Selling expenses
    Administrative expenses                                                                      57,715,566           49,958,367
    Financial expenses                                                                            -7,041,547         -10,409,383
    Loss for impairment of assets
    Plus: Fair value charge profit (loss is listed with "-")
    Investment profit (loss is listed with "-")                                 15.5             46,770,286           65,474,283
    Including: Investment profit for joint-run business and joint venture
    2. Operating profit (loss is listed with "-")                                                60,804,174           74,339,246
    Plus: Non-operating income                                                                     3,158,421           2,153,759
    Including: Gains on disposal of non-current assets
    Minus: Non-operating expenses                                                                   301,089
    Including: losses on disposal of non-current assets
    3. Total profits (total loss is listed with "-")                                             63,661,506           76,493,005
    Minus: Income tax                                                                              4,222,805           2,754,680
    4. Net profit (net loss is listed with "-")                                                  59,438,701           73,738,325
    5. Net after-tax amount of other comprehensive income
    5.1 Other comprehensive earnings not to be reclassified into profit
    and loss later
    5.1.1 Net liabilities or net assets change after remeasuring and
    resetting the benefit plans
    5.1.2 Share enjoyed in other comprehensive earnings not to be
    reclassified into profit and loss in invested unit under equity law
    5.2 Other comprehensive earnings to be reclassified into profit and
    loss later
    5.2.1 Share enjoyed in other comprehensive earnings to be
    reclassified into profit and loss in invested unit under equity law
    5.2.2 Profit and loss from changes in fair value of financial assets for
    sale
    5.2.3 Profit and loss from reclassification of held-to-maturity
    investment into fair value of financial assets for sale
    5.2.4 Effective part of profit and loss of cash-flow hedge
    5.2.5 Difference in translation of Foreign Currency Financial
    Statement
    5.2.6 Others
    6. Total comprehensive income                                                                59,438,701           73,738,325
    7. Earnings per share
    (1) Basic earnings per share                                                                        0.09                 0.11
    (2) Diluted earnings per share                                                                      0.09                 0.11


The Legal Representative: Sun Liqiang                  Accounting Supervisor: Leng Bin           Accounting Department Manager:
Jiang Jianxun




                                                                                                                                    42
                                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


2.5 Consolidated statement of cash flow

Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.                                                Unit: Yuan
                                     Item                                    Sum of current period       Sum of prior period
    1. Cash flows from operating activities:
    Cash received from sales of goods and rending of services                          2,745,943,886              2,562,811,996
    Net increase in customer and interbank deposits
    Net increase in borrowings from central bank
    Net increase in borrowings from other financial institutions
    Cash received from receiving insurance premium of original
    insurance contract
    Net cash received from reinsurance business
    Net increase in policy holder deposits and investment funds
    Net increase after disposal of financial assets measured at the fair
    value and the variation of which is recorded into the current profit
    and loss
    Cash received from collecting interest, handling fees and
    commission
    Net increase in borrowings
    Net increase in repurchasement business funds
    Tax refund received
    Other cash received related to operating activities                                    8,212,963                 8,348,936
    Subtotal of cash flows of operating activities                                     2,754,156,849              2,571,160,932
    Cash paid for goods and services                                                    377,725,712                386,315,147
    Net increase in customer loans and advances
    Net increase in deposits in central bank and interbank deposits
    Cash paid to original insurance contract payments
    Cash paid to interest, handling fees and commission
    Cash paid to policy bonus
    Cash paid to and on behalf of employees                                             205,574,897                177,188,827
    Cash paid for taxes and expenses                                                    853,362,703                784,526,070
    Other cash paid related to operating activities                                     390,330,477                333,455,757
    Sub-total of cash outflows of operating activities                                 1,826,993,789              1,681,485,801
    Net cash flow from operating activities                                             927,163,060                889,675,131
    2. Cash flow from investing activities:
    Cash received from return of investment
    Fixed deposit with the term of over 3 months                                          26,245,259               218,392,728
    Cash received from obtaining investment profit                                           859,212                 6,572,323
    Cash received from disposal of fixed assets, intangible assets and
                                                                                                 100                       100
    other long-term assets
    Net cash received from disposal of branch and other business unit
    Other cash received related to investing activities
    Subtotal of cash flows of investment activities                                       27,104,571               224,965,151
    Cash paid to acquire fixed assets, intangible assets and other
                                                                                        452,285,573                398,392,132
    long-term assets
    Cash for investment
    Cash paid to buy fixed deposit with the term of over 3 months                          7,000,000                67,547,483
    Net increase in hypothecated loan
    Net cash paid to acquire branch and other business unit


                                                                                                                                  43
                                                                 Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                     Item                               Sum of current period      Sum of prior period
    Other cash paid related to investment activities
    Subtotal of cash outflows of investment activities                              459,285,573               465,939,615
    Net cash flow from investing activities                                        -432,181,002              -240,974,464
    3. Cash flow from financing activities
    Cash received from acquiring investment
    Including: cash received from acquiring minority shareholders
    investment by branch
    Cash received from acquiring loans
    Cash received from issuing bonds
    Other cash received related to financing activities
    Subtotal cash flows of financing activities
    Cash paid to pay debts                                                           15,562,400
    Cash paid to distribute dividend, profit or pay interest                          8,357,292
    Including: dividend and profit paid to minority shareholders by
    branch
    Other cash paid related to financing activities
    Subtotal of cash outflows of financing activities                                23,919,692
    Net cash flow from financing activities                                         -23,919,692
    4. Influences of exchange rate fluctuation on cash and cash
                                                                                       -508,117                    -37,956
    equivalents
    5. Net Increase in cash and cash equivalents                                    470,554,249               648,662,711
    Plus: balance at the beginning of the period of cash and cash
                                                                                    960,472,274               956,558,932
    equivalents
    6. Balance at the end of the period of cash and cash equivalents              1,431,026,523              1,605,221,643


The Legal Representative: Sun Liqiang             Accounting Supervisor: Leng Bin        Accounting Department Manager:
Jiang Jianxun




2.6 Statement of cash flow of the parent company




Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.                                           Unit: Yuan
                                     Item                               Sum of current period      Sum of prior period
    1. Cash flows from operating activities:
    Cash received from sales of goods and rending of services                       373,810,768               457,521,916
    Tax refund received
    Other cash received related to operating activities                              22,816,369               169,506,621
    Subtotal of cash flows of operating activities                                  396,627,137               627,028,537
    Cash paid for goods and services                                                197,172,825               200,573,384
    Cash paid to and on behalf of employees                                          80,634,457                57,999,162
    Cash paid for taxes and expenses                                                122,745,455               150,308,754
    Other cash paid related to operating activities                                  22,075,594                16,542,221
    Sub-total of cash outflows of operating activities                              422,628,331               425,423,521
    Net cash flow from operating activities                                         -26,001,194               201,605,016


                                                                                                                             44
                                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                     Item                                  Sum of current period     Sum of prior period
    2. Cash flow from investing activities:
    Cash received from return of investment                                                350,000
    Fixed deposit with the term of over 3 months                                        26,245,259             218,392,728
    Cash received from obtaining investment profit                                      47,629,498              72,046,606
    Net cash received from disposal of fixed assets, intangible assets
    and other long-term assets
    Net cash received from disposal of branch and other business unit
    Other cash received related to investing activities
    Subtotal of cash flows of investment activities                                     74,224,757             290,439,334
    Cash paid to acquire fixed assets, intangible assets and other
                                                                                        20,197,080              25,546,521
    long-term assets
    Cash for investment
    Cash paid to buy fixed deposit with the term of over 3 months                        7,000,000              44,547,483
    Net cash paid to acquire branch and other business unit
    Other cash paid related to investment activities
    Subtotal of cash outflows of investment activities                                  27,197,080              70,094,004
    Net cash flow from investing activities                                             47,027,677             220,345,330
    3. Cash flow from financing activities
    Cash received from acquiring investment
    Cash received from acquiring loans
    Cash received from issuing bonds
    Other cash received related to financing activities
    Subtotal cash flows of financing activities
    Cash paid to pay debts                                                              15,562,400
    Cash paid to distribute dividend, profit or pay interest                             8,357,292
    Other cash paid related to financing activities
    Subtotal of cash outflows of financing activities                                   23,919,692
    Net cash flow from financing activities                                            -23,919,692
    4. Influences of exchange rate fluctuation on cash and cash
    equivalents
    5. Net Increase in cash and cash equivalents                                        -2,893,209             421,950,346
    Plus: balance at the beginning of the period of cash and cash
                                                                                      333,245,466              197,150,989
    equivalents
    6. Balance at the end of the period of cash and cash equivalents                  330,352,257              619,101,335


The Legal Representative: Sun Liqiang             Accounting Supervisor: Leng Bin           Accounting Department Manager:
Jiang Jianxun




                                                                                                                             45
                                                                                                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




            2.7 Consolidated owner’s equity changing list

                                                                                                                                                                                                            Unit: Yuan
                                                                                                                                  Current period
                                                                                                       Owners‘ equity of the parent company
                          Item                                   Other equity instruments                                                                                                  Minority
                                                   Capital                                          Capital       Minus:      Other
                                                                                                                                         Special   Surplus         General Undistributed shareholders‘ Total owners‘
                                                                 Preferred
                                                                             Perpetual                           Treasury comprehensive reserves                     risk                   equity         equity
                                                    stock                     Capital     Others   reserves       stock      income                reserves      preparation profits
                                                                   stock
                                                                             Securities

1. Balance at the end of last year                 685,464,000                                     563,139,042                  -2,803,271         342,732,000                5,251,920,374   162,740,779   7,003,192,924
Plus: Accounting policies changing
Previous error correction
Business combination under common control
Others
2. Balance at the beginning of this year           685,464,000                                     563,139,042                  -2,803,271         342,732,000                5,251,920,374   162,740,779   7,003,192,924
3. Increasing or reducing amount of this period                                                                                 -4,144,991                                     746,060,248                    741,915,257
(reducing amount is listed with "-")
3.1 Total comprehensive income                                                                                                  -4,144,991                                     746,060,248                    741,915,257
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holders‘ invested
capital
3.2.3 Amount of shares paid and reckoned in
owners' equity
3.2.4 Others
3.3 Profit distribution
3.3.1 Drew surplus reserves
3.3.2 Drew general risk preparation
3.3.3 Distribution to owners (or shareholders)
3.3.4 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased
capital (or capital stock)


                                                                                                                                                                                                                     46
                                                                                                                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


3.4.2 Surplus reserves transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
3.5 Special reserves
3.5.1 Withdrawal of this period
3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period                 685,464,000                                     563,139,042                 -6,948,262          342,732,000                5,997,980,622   162,740,779   7,745,108,181




                                                                                                                                                                                                              Unit: Yuan
                                                                                                                                   Prior period
                                                                                                        Owners‘ equity of the parent company
                       Item                                        Other equity instruments                                                                                                    Minority
                                                                                                                    Minus:                                           General                                Total owners‘
                                                                                                                                                                               Undistributed shareholders‘
                                                                                                                                Other
                                                    Capital                    Perpetual              Capital                             Special     Surplus                                                  equity
                                                     stock         Preferred                         reserves      Treasury comprehensive reserves    reserves         risk      profits        equity
                                                                                Capital     Others                  stock      income                              preparation
                                                                     stock
                                                                               Securities

1. Balance at the end of last year                 685,464,000                                       563,139,042                                     342,732,000                4,616,944,663   162,740,779    6,371,020,484
Plus: Accounting policies changing
Previous error correction
Business combination under common control
Others
2. Balance at the beginning of this year        685,464,000                                          563,139,042                                     342,732,000                4,616,944,663   162,740,779    6,371,020,484
3. Increasing or reducing amount of this period
                                                                                                                                 -2,803,271                                      634,975,711                    632,172,440
(reducing amount is listed with "-")
3.1 Total comprehensive income                                                                                                   -2,803,271                                      977,707,711                    974,904,440
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holders‘ invested
capital
3.2.3 Amount of shares paid and reckoned in
owners' equity


                                                                                                                                                                                                                       47
                                                                                             Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


3.2.4 Others
3.3 Profit distribution                                                                                            -342,732,000                 -342,732,000
3.3.1 Drew surplus reserves
3.3.2 Drew general risk preparation
3.3.3 Distribution to owners (or shareholders)                                                                     -342,732,000                 -342,732,000
3.3.4 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased
capital (or capital stock)
3.4.2 Surplus reserves transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
3.5 Special reserves
3.5.1 Withdrawal of this period
3.5.2 Usage of this period
3.6 Others

4. Balance at the end of this period               685,464,000   563,139,042                342,732,000           5,251,920,374   162,740,779   7,003,192,924
                                                                               -2,803,271




                                                                                                                                                        48
                                                                                                                                                           Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


          2.8 Owner’s equity changing list of the parent company

                                                                                                                                                                                                              Unit: Yuan
                                                                                                                                         Current period

                            Item                                                Other equity instruments                             Minus:        Other
                                                                Capital                                                Capital                                    Special     Surplus      Undistributed     Total owners‘
                                                                 stock       Preferred   Perpetual Capital            reserves      Treasury   comprehensive     reserves     reserves       profits            equity
                                                                                                             Others                  stock        income
                                                                               stock        Securities

1. Balance at the end of last year                             685,464,000                                            557,222,454                                            342,732,000     4,620,476,137     6,205,894,591
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year                  685,464,000                                                 557,222,454                                            342,732,000     4,620,476,137     6,205,894,591
3. Increasing or reducing amount of this period (reducing
                                                                                                                                                                                               59,438,701         59,438,701
amount is listed with "-")
3.1 Total comprehensive income                                                                                                                                                                 59,438,701         59,438,701
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holder‘ invested capital
3.2.3 Amount of shares paid and reckoned in owners'
equity
3.2.4 Others
3.3 Profit distribution
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or shareholders)
3.3.3 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased capital (or
capital stock)
3.4.2 Surplus reserves transferred and increased capital (or
capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
3.5 Special reserves
3.5.1 Withdrawal of this period


                                                                                                                                                                                                                        49
                                                                                                                                                            Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period                           685,464,000                                            557,222,454                                             342,732,000    4,679,914,838      6,265,333,292



                                                                                                                                                                                                               Unit: Yuan
                                                                                                                                          Prior period
                                                                                Other equity instruments                             Minus:         Other
                             Item                               Capital                                                Capital                                      Special    Surplus      Undistributed     Total owners‘
                                                                 stock       Preferred   Perpetual capital            reserves      Treasury   comprehensive       reserves    reserves       profits            equity
                                                                                                             Others                  stock        income
                                                                               stock        securities

1. Balance at the end of last year                             685,464,000                                            557,222,454                                             342,732,000     3,811,446,092     5,396,864,546
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year                       685,464,000                                            557,222,454                                             342,732,000     3,811,446,092     5,396,864,546
3. Increasing or reducing amount of this period (reducing                                                                                                                                      809,030,045        809,030,045
amount is listed with "-")
3.1 Total comprehensive income                                                                                                                                                                1,151,762,045     1,151,762,045
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holder‘ invested capital
3.2.3 Amount of shares paid and reckoned in owners'
equity
3.2.4 Others
3.3 Profit distribution                                                                                                                                                                       -342,732,000       -342,732,000
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or shareholders)                                                                                                                                                -342,732,000       -342,732,000
3.3.3 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased capital (or
capital stock)
3.4.2 Surplus reserves transferred and increased capital (or
capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others


                                                                                                                                                                                                                         50
                                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


3.5 Special reserves
3.5.1 Withdrawal of this period
3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period   685,464,000   557,222,454                     342,732,000    4,620,476,137   6,205,894,591




                                                                                                                            51
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3. Basic information of this company

  Yantai Changyu Pioneer Wine Co., Ltd. (the ―Company‖, the ―Joint-stock Company‖ or ―the Group‖) was
  incorporated as a joint stock limited company in accordance with the Company Law of the People‘s
  Republic of China (the ―PRC‖) in the merger and reorganization carried out by Yantai Changyu Group Co.,
  Ltd. (―Changyu Group Company‖) with its assets and liabilities in relation to wine business. The Company
  and its subsidiary companies (hereinafter uniformly referred to as the ―Group‖) are principally engaged in
  the production and sales of wine, brandy and champagne. The registered address of the Company is
  Yantai City, Shandong Province, and the office address of the headquarters is 56 Dama Road, Zhifu District,
  Yantai City, Shandong Province.

  By June 30, 2015, the Company had issued 685,464,000 shares accumulatively. Refer to Note 7.29 for the
  details.

  The parent company of the Group is Changyu Group Company incorporated in China, which was
  ultimately controlled by Yantai Guofeng Investment Holding Co., Ltd., ILLVA Saronno Holding SPA,
  International Finance Corporation and Yantai Yuhua Investment and Development Co., Ltd.

  The subsidiaries and the consolidated financial statement of the Company were approved by the Board of
  Directors on August 26, 2015.

  The scope of the consolidated financial statement in this year can be seen in Note 9 ―Equity in other
  entities‖. The scope changes of the consolidated financial statement in this year can be seen in Note 8
  ―Changes of the consolidated scope‖.



4. Basis of preparation of financial statement

4.1 Basis of preparation
  The Group implements the Accounting Standards for Business Enterprises (including the new and revised
  editions published in 2014) (―ASBE‖) published by the Ministry of Finance and relevant regulations
  thereof. In addition, the Group also discloses relevant financial information in accordance with Information
  Disclosure and Preparation Rules for Enterprises Publically Issuing Securities No.15 ---- General Rules
  for Financial Statement (Revised in 2014).
  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 relevant
  accounting standards.
  When the historical cost measurement is used, the assets are measured by the amount of cash or cash
  equivalent when the assets are purchased or the fair value of the consideration. The liabilities are measured
  by the actually received funds or assets for performing the current obligations, or the contract amount for
  performing the current obligations, or the amount of cash or cash equivalent paid for anticipated liabilities
  in the daily activities.
  Fair value refers to a price received for selling an asset or paid for transferring a liability by the market
  participant in orderly transactions on the measurement date. No matter the fair value is observable or
  estimated by the valuation technique, the fair value measured and disclosed in this financial statement is
  recognized on this basis.
  The fair value measurement is divided into three levels based on the observable degree of the input fair
  value and the importance of this input value on the whole fair value measurement:

                                                                                                                  52
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  *The input value of the first level is the unadjusted price of the same assets or liabilities which can be
   acquired in an active market on the measurement date.
  *The input value of the second level is the directly or indirectly observable input value of relevant assets or
   liabilities except that of the first level.
  *The input value of the third level is the unobservable input value of relevant assets or liabilities.
4.2 Continuous operation
  The Group has appraised the ability of continuous operation for 12 months from June 30, 2015, and no
  issues and situations causing major doubts to this ability are found. Therefore, this financial statement is
  prepared on the basis of the continuous operation assumption.

5. Main accounting policies and accounting estimates

5.1 Statement on compliance with ASBE
  This financial statement fulfills the requirement of ASBE and gives a true and integrate view of the
  financial status and the consolidated financial status as at June 30, 2015, and the operating result, the
  consolidated operating result, the cash flow and the consolidated cash flow of the Company from January
  to June 2015.
5.2 Accounting period
  The accounting period of the Group is from January 1 to December 31.
5.3 Operating cycle
  The operating cycle refers to the period from the enterprise purchases the assets used for processing to the
  cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 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 currency
  in this financial statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control and
   non-common control
5.5.1 Business combination and goodwill under non-common control
  A business combination under non-common control is a business combination in which all of the
  combining enterprises are not ultimately controlled by the same party or parties before and after the
  combination.
  The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed or the
  equity instruments issued by the acquirer in exchange for the control over the acquiree. The intermediary
  expenses such as audit, legal services and assessment consultation and other related management expenses
  paid by the acquirer for business combination are included in the current profit and loss when they occur.
  The identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree in the
  business combination and meet the recognition conditions shall be measured on the acquisition date
  according to the fair value thereof.
  If the combination cost is larger than the fair value of the identifiable net assets obtained from the acquire
  during the combination, the difference shall be recognized as business goodwill and initially measured
  according to the cost thereof.
  The goodwill formed due to business combination shall be separately listed in the consolidated financial

                                                                                                                    53
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  statement and measured on the basis of the cost minus the accumulative impairment provision.
5.6 Compiling methods of consolidated financial statement
  The consolidation scope of the consolidated financial statement is determined on the basis of control.
  Control means that the investor holds the power in the investor, obtains variable returns by participating in
  relevant activities of the invested party and has the ability to affect the amount of the returns by using the
  power on the invested party. Once any change of the relevant facts and situations results in any change of
  relevant elements of the above definition of Control, the Group will carry out reappraisal.
  The merger of any subsidiary company starts from the date when the Group acquires the power to control
  this subsidiary company, while the termination of any subsidiary company ends in the date when the Group
  losses the power to control this subsidiary company.
  As for any subsidiary company disposed by the Group, the business result and the cash flow thereof before
  the disposal date (date of losing control power) shall have been properly included in the consolidated
  income statement and the consolidated cash flow statement.
  As for any subsidiary company obtained in a business combination under non-common control, the
  business result and the cash flow thereof since the acquisition date (date of obtaining control power) shall
  have been properly included in the consolidated income statement and the consolidated cash flow
  statement.
  The principal accounting policies and accounting period adopted by the subsidiary companies shall be
  determined in accordance with the accounting policies and accounting period uniformly regulated by the
  Company.
  The influence of the internal transaction between the Company and the subsidiary companies as well as
  among subsidiary companies on the consolidated financial statement 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 listed under the item of ―minority equity‖ of the owner‘s
  equity in the balance sheet. The shares in the current profit and loss of the subsidiary companies, which
  belong to the minority equity, shall be listed under the item of ―minority equity‖ of the net profit in the
  consolidated income statement.
  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 term, the difference shall be still
  credited against the minority equity.
5.7 Recognition standards of cash and cash equivalents
  Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer to short-term
  highly liquid investments which are readily convertible into known amount of cash with an insignificant
  risk of changes in value.

5.8 Foreign currency transaction and foreign currency statement translation


5.8.1 Foreign currency transaction

  At the time of initial recognition of a foreign currency transaction, the amount of the foreign currency shall
  be translated into the amount of 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 by 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 included in the current profit and loss, except: ① the currency
  translation difference of the dedicated foreign currency loan that meets the capitalization condition shall be

                                                                                                                   54
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  included in the cost of assets as capitalization during the capitalization period; ② the currency translation
  difference of the arbitrage tool to avoid foreign exchange risk shall be treated according to the 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 included in other comprehensive income.
  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 included in the current profit and loss or
  recognized as other comprehensive income.
5.8.2 Translation of foreign currency financial statement
  In order to compile a 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 sheet shall be translated at the spot exchange rate on the balance
  sheet date; the shareholders' equity items, except for 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 exchange rate similar to the spot exchange rate
  at the time when they occur; the undistributed profits at the beginning of the year shall be the translated to
  the 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; and the difference between the asset
  items and the sum of the liability items and the shareholders‘ equity items shall be recognized as other
  comprehensive income and included in the shareholder's equity.
  The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall be
  translated at the exchange rate similar to 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 balance 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.
5.9 Financial instruments
  When becoming a party to a contract of financial instruments, the Group shall recognize a financial asset
  or financial liability. The financial assets and financial liabilities shall be measured at their fair value at the
  time of initial recognition. For other categories of financial assets and financial liabilities, relevant
  transaction expenses thereof shall be included in the initially recognized amount.
5.9.1 Effective interest method
   The effective interest method refers to the method by which the amortized cost and the interest income or
  expenditure of different installments are calculated in light of the effective interest rates of the financial
  assets or financial liabilities (including a group of financial assets or financial liabilities). The effective
  interest rate refers to the interest rate adopted to cash the future cash flow of a financial asset or financial
  liability within the predicted term of existence or within a shorter applicable term into the current book
  value of the financial asset or financial liability.
  When the effective interest rate is calculated, the Group predicts the future cash flow (taking no account of
  the future credit loss) on the basis of considering all the contractual provisions concerning the financial
  assets or financial liabilities, as well as all kinds of charges, transaction expenses, discounts, premiums, etc.
  which are paid, charged, and included in the effective interest rate between the contracting parties of the
  financial assets or liabilities.



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5.9.2 Classification, recognition and measurement of financial assets

  Financial assets are classified into the following categories when they are initially recognized: the financial
  assets which are measured at the fair value and the variation of which is included in the current profit and
  loss, the investments which will be held to their maturity, loans, accounts receivable 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 Group are loans, accounts receivable and available-for-sale financial assets.
  Loans and accounts receivable
  Loans and accounts receivable refer to the non-derivative financial assets for which there is no quoted
  price in an active market and of which the repo amount is fixed or determinable. The financial assets
  classified by the Group into loans and accounts receivable include monetary capital, bills receivable,
  accounts receivable, interest receivable, dividends receivable and other receivables.
  The loans and accounts receivable shall be subsequently measured at amortized cost by adopting the
  effective interest rate method. The profits or losses that occur when such loans and accounts receivable are
  terminated from recognition, impaired or amortized shall be included in the current profit and loss.
  Available-for-sale financial assets
  Available-for-sale financial assets are non-derivative financial assets that are designated as available for
  sale at the time of initial recognition and the financial assets other than those measured at their fair value
  and the variation of which is included in the current profit and loss, loans, accounts receivable and the
  investments which will be held to their maturity.
  The equity instrument investment without quoted market price in an active market whose fair value cannot
  be reliably measured shall be measured by cost.

5.9.3 Impairment of financial assets

  On each balance sheet date, the Group checks the book value of the financial assets. If there is any
  objective evidence indicating that a financial asset is impaired, the impairment provision is accrued.
  Objective evidence indicating the impairment of financial assets refers to those occurring after the initial
  recognition, have effect on the estimated future cash flow of the financial assets, and can be measured
  reliably.
  The objective evidence indicating the impairment of the financial assets includes the following observable
  matters:
      ① A serious financial difficulty occurs to the issuer or the debtor;
      ② The debtor breaches any of the contractual stipulations, such as, failure to pay or delay of the
         payment of interest or principal;
      ③ The Group makes any concession due to economic, legal factors or other factors to the debtor
         which is in financial difficulties;
      ④ The debtor will probably become bankrupt or carry out other financial reorganizations;
      ⑤ The financial assets can no longer continue to be traded in an active market due to serious
         financial difficulties of the issuer;
      ⑥ It is impossible to identify whether the cash flow of a certain asset within a certain group of
         financial assets has decreased or not. But after making an overall appraisal according to the public
         data available, it is found that the estimated future cash flow of the said group of financial assets
         has indeed decreased since it was initially recognized and such decrease can be measured,
         including:

                                                                                                                  56
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    *    The payment ability of the debtor of the said group 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.
        ⑦ A serious unfavourable change occurs to the operating technology, market, economic environment,
           legal environment of the issuer of the equity instruments that causes the investor of the equity
           instruments can‘t recover the investment costs;
        ⑧ The fair value of the equity instrument investment has serious or permanent decline; and
        ⑨ Other objective evidence showing the depreciation of the financial assets.
  * Impairment of financial assets measured by 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 included
  into the current profit and loss. 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.
  * Impairment of available-for-sale financial assets measured by cost
  When the equity instrument investment without quoted market price in an active market and the fair value
  of which cannot be reliably measured is impaired, the book value is decreased to the current value
  confirmed by the discounted future cash flow according to the current market return of the similar financial
  assets. The decreased amount is recognized as impairment loss and included in the current profit and loss.
  The impairment loss of this kind of financial assets can‘t be transferred back upon confirmation.

5.9.4 Transfer 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 over 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
  included in other comprehensive income shall be included in the current profit and loss.




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5.9.5 Classification, recognition and measurement of financial liabilities

   The Group classifies the financial instruments or the components as financial liabilities or equity
   instruments at the time of initial recognition according to the contract terms of the issued financial
   instruments and the reflected economic essence rather than only the legal form, considering the definition
   of financial liabilities and equity instruments.
   The financial liabilities are classified as the financial liabilities and other financial liabilities measured by
   fair value and the variation of which is included in the current profit and loss at the time of initial
   recognition. The financial liabilities of the Group are other financial liabilities, including short-term loans,
   notes payable, accounts payable, interest payable, other payables and long-term loans.
  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 amortized shall be included in the current profit and loss.
5.9.6 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 liability 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 of the part which has been terminated from recognition and the consideration which has been
   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.
5.9.7 Offset of financial assets and financial liabilities
   When the Group has the legal right to offset the recognized financial assets and financial liabilities and this
   right can be implemented at present, and when the Group plans to use net settlement or liquidate the
   financial assets and pay off the financial liabilities, the amount after the financial assets offset the financial
   liabilities is listed in the balance sheet. Besides, the financial assets and the financial liabilities are
   respectively listed in the balance sheet without offset.
5.9.8 Equity instruments
   The equity instruments mean the contracts by which to hold the residual equity in the assets of the Group
   after deducting all the liabilities. The issuing (including refinancing), counter purchase, sale or cancellation
   of the equity instruments by the Group shall be handled as changes of the equity. The Group doesn‘t
   recognize any change to the fair value of the equity instruments. The transaction expenses related to the
   equity transaction shall be deducted from the equity.
   The distribution related to the equity instrument holder by the Group shall be considered as profit
   distribution, and the issued share dividends don‘t affect the total amount of the shareholders‘ equity.
5.10 Accounts receivable
5.10.1 Bad account provision of individually significant accounts receivable
                                                               The accounts 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 accounts receivable.

        Accruing method for individually significant accounts An impairment test shall be made independently by
        accrued for bad account provision individually        the Group on the individually significant financial
                                                              assets. Where, upon independent test, the financial


                                                                                                                       58
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                                                                  asset has not been impaired, it shall be included in a
                                                                  combination of financial assets with similar risk
                                                                  characteristics so as to conduct another impairment
                                                                  test. The accounts receivable 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 accounts receivable
                                                                  with similar credit risk characteristics for impairment
                                                                  test.

5.10.2 Individually insignificant accounts receivable accrued for bad account provision
individually
                                            If there is objective evidence that the Group can‘t 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.

5.11 Inventories
5.11.1 Classification of inventories
  Inventories of the Group comprise raw materials, goods in process and commodity stocks. The inventories
  are initially measured by cost. The inventory cost consists of purchase cost, processing cost and other
  expenditures to make inventories reach the current site and state.
5.11.2 Pricing methods 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 ASBE 1- Inventories.
5.11.3 Recognition reference of the net realizable value of inventories
  Inventories are stated at the lower of cost and net realizable value on 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 inventory depreciation provision according to the difference of single
  inventory item and its net realizable value.
  After accruing inventory 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 inventory depreciation provision amount and the reversed
  amount shall be included in the current profit and loss.
5.11.4 Inventory system for the inventories
  Inventory system: Perpetual inventory system
5.11.5 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 method




                                                                                                                            59
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5.12 Long-term equity investments
5.12.1 Judgment standard of control, common control and significant impact
  Control means that the investor holds the power in the investor, obtains variable returns by participating in
  relevant activities of the invested party and has the ability to affect the amount of the returns by using the
  power on the invested party. Common control means a joint control over a certain arrangement according
  to relevant agreements and relevant activities of this arrangement must be decided upon unanimous
  consent of the participants sharing the control power. Significant impact refers to the right to participate in
  decision-making of the investor‘s financial and operating policies but not controlling or commonly
  controlling the formulation of these policies with other parties. When determining whether to control or
  exert significant influence on the invested unit, the potential voting power factors such as the current
  convertible company bonds and the current executable equity warrants held by the investor and other
  parties in the invested unit have been considered.
5.12.2 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 initial investment cost of the long-term equity investments on the
  acquisition date.
  The intermediary expenses such as audit, legal services and assessment consultation and other related
  management expenses paid by the acquirer for business combination are included in the current profit and
  loss when they occur..
  For long-term equity investments other than those formed by business combination, initial measurement
  shall be carried out according to the cost.
5.12.3 Subsequent measurement and recognition of loss and profit
  Long-term equity investments by cost method
  Long-term equity investments in the subsidiary companies are measured on cost method basis in the
  corporate financial statement. Subsidiary companies refer to the invested entities by which the Group has
  control.
  When cost method is adopted, the long-term equity investments are measured at the initial investment cost.
  In case of additional or recovered investment, the cost of the long-term equity investments shall be
  adjusted accordingly. The current investment income shall be recognized according to the cash dividends
  or profits declared to issue by the invested unit.
5.12.4 Disposal of long-term equity investments
  When the long-term equity investments are disposed, the difference between the book value and the
  actually acquired price is included in the current profit and loss.
5.13 Fixed assets
5.13.1 Recognition conditions
  Fixed assets refer to the tangible assets held for producing goods, rendering services, leasing or operation
  management, with service 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.
5.13.2 Depreciation methods
  Depreciation is calculated by the straight-line depreciation within the service life from the month following
  having been put into operation. The estimated service life, residual value and annual depreciation rate are

                                                                                                                  60
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  as follows:
     Classification    Depreciation method      Depreciation life       Residual value rate   Annual depreciation rate
                            Straight-line
  Buildings                                   20-40 years              0-5%                     2.4%-5.0%
                           depreciation
                            Straight-line
 Machinery equipment                          10-20 years              0-5%                     4.8%-10.0%
                           depreciation
                            Straight-line
 Motor vehicles                               4-12 years               0-5%                     7.9%-25.0%
                           depreciation

  The estimated residual value refers to the amount that the Group obtains from disposal of the assets at
  present after deducting the predicted disposition expenses at an estimated state on the assumption that the
  predicted service life of the fixed assets has expired.
5.13.3 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.
  After impairment loss of fixed assets has been recognized, it shall not be reversed in the future accounting
  periods.
5.13.4 Others
  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 after deducting the book value and relevant taxes.
  The Group reviews the service 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.
5.14 Construction in progress
  Construction in progress is measured by actual costs, and the actual costs include all costs of the
  engineering during the period of construction, capitalized borrowing costs before the engineering reaches
  the planned serviceable condition and other related costs. The construction in progress is not depreciated.
  The construction in progress is transferred to fixed assets after reaching the planned serviceable condition.
5.15 Borrowing costs
  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.
  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. 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.
  Other borrowing costs are recognized as expenses when occur.
5.16 Biological assets
  The biological assets of the Group are productive 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 cost.

                                                                                                                         61
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   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.
   The productive biological assets are not accrued depreciation until reaching the intended production and
   operation purposes. After reaching the intended production and operation purposes, the productive
   biological assets are accrued depreciation within the service life straight-line depreciation. The service life,
   estimated net residual value rate and annual depreciation rate of different productive biological assets are
   as follows:
   Category of assets    Service life     Estimated residual value rate (%)       Annual depreciation rate
   Vines                 20 years                                                 5%

   The service life of the productive biological assets of the Group and the estimated residual value are
   confirmed by the normal service life cycle of the biological assets.
   The Group reviews the service life, expected net residual value,and the depreciation method of the
   productive biological assets at least 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 relevant taxes from the disposal income are included in the current profit and
   loss.
5.17 Intangible assets
5.17.1 Pricing method, service life and impairment test
   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 service life are not amortized. The amortization method,
   service life and estimated residual value of all kinds of intangible assets are shown as follows:
Category of assets         Service life       Estimated net residual value rate               Annual amortization rate

Land use right             40-50 years        -                                               2-2.5%
Software                   5-10 years         -                                               10-20%

   At the end of the term, the service life and amortization method of the intangible assets with finite service
   life shall be reviewed and adjusted if necessary.
5.18 Impairment of long-term assets
   On each balance sheet date, the Group and the Company check the long-term equity investments, fixed
   assets, construction in progress, productive biological assets and intangible assets with finite service life to
   determine whether there is a sign indicating any impairment. If there is such a sign, the recoverable amount
   shall be estimated. For intangible assets with indefinite service life and those not reaching the serviceable
   conditions, impairment test should be taken every year no matter there is a sign of depreciation or not.
   The estimated recoverable amount of the asset is based on the single asset. If it is difficult to estimate the
   recoverable amount of a single asset, the recoverable amount is determined based on the asset group which
   the asset is in. The recoverable amount is the higher one between the net amount after the disposition
   expenses are deducted from the fair value of the asset or the asset group and the current value of the
   estimated future cash flow.
   If the recoverable amount of the asset is lower than its book value, the impairment provision of the asset is
   accrued based on the difference and included in the current profit and loss.
   Impairment test is carried out for goodwill at least at the end of each year. The impairment test of goodwill

                                                                                                                           62
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  be carried out in combination with the related asset group or asset combination. That is to say, the book
  value of the goodwill is amortized to the asset group or asset combination benefiting from the synergistic
  effect of the business combination according to the reasonable methods from the acquisition date. If the
  recoverable amount of the asset group or asset combination which includes the amortized goodwill is
  lower than the book value, the corresponding impairment loss is recognized. The amount of impairment
  loss shall firstly offset the book value of the goodwill amortized to the asset group or asset combination
  and then offset the book value of other assets in proportion according to the proportion in the book value of
  other assets in the asset group or asset combination except for the goodwill.
  After the impairment loss of assets has been recognized, it is not be reversed in the future accounting
  periods.
5.19 Long-term unamortized expenses
  Long-term unamortized 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 unamortized expenses
  are amortized evenly over the expected beneficial periods.


   Amortization period of different long-term unamortized expenses of the Group are as follows:

                                                                        Amortization period
   Land requisition fee                                                 50 years
   Land leasing fee                                                     50 years
   Afforestation fee                                                    5 years
   Decoration fee                                                       3-5 years
   Others                                                               3 years

5.20 Employee remuneration
5.20.1 Accounting treatment method of short-term remuneration
  During the accounting period that the employees provide services for the Group, the actual short-term
  remuneration is recognized as liabilities and included in the current profit and loss or relevant asset costs.
  The welfare expenses of the employees in the Group are included in the current profit and loss or relevant
  asset costs when occur based on the actual amount. The non-monetary welfare expenses of the employees
  are measured by the fair value.
  During the accounting period that the employees provide services for the Group, the corresponding
  employee remunerations and the corresponding liabilities are recognized and included in the current profit
  and loss or relevant asset costs after the social insurance premiums including medical insurance premium,
  industrial injury insurance premium and birth insurance premium as well as housing provident funds are
  paid by the Group for the employees, and labor union dues and employee education funds are withdrawn
  by the Group according to the regulated withdrawing base and proportion.
5.20.2 Accounting treatment method of welfare after resignation
  The Group makes the contribution plan for the welfare after resignation.
  During the accounting period that the employees provide services for the Group, the amount to be
  deposited which is calculated in accordance with the contribution plan is recognized as liabilities and
  included in the current profit and loss or relevant asset costs.
5.20.3 Accounting treatment method of welfare after dismission
  If the Group provides dismission welfare to the employees, the employee remuneration liabilities caused
  by the dismission welfare shall be recognized and included in the current profit and loss on the following
  date which is earlier: The Group can‘t unilaterally withdraw the dismission welfare due to termination of
  labor relation plan or redundancy suggestion; or the Group confirms the costs or expenses related to the
  reorganization involving the payment of the dismission welfare.

                                                                                                                           63
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5.21 Revenue
5.21.1 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.
5.21.2 Rendering of services
  When income amount of rendering of services can be measured reliably, the relevant economic benefits are
  likely to flow into the Group, 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.
5.22 Government allowances
5.22.1 Judgment standard and accounting treatment method of government allowances related
to assets
  Government allowances refer to monetary or non-monetary assets received by the Group from the
  government. According to the nature of the granted object clearly stipulated in relevant government
  documents, government allowances include those related to assets and those related to income.
  Government allowances are recognized where there is a reasonable assurance that the allowances will be
  received and all attaching conditions will be complied with. Monetary allowances are measured on the
  basis of the amount received or the amount receivable.
  Government allowances related to assets are recognized as deferred income and are distributed equally in
  the current profit and loss within the useful lives of the relevant assets.
5.22.2 Judgment standard and accounting treatment method of government allowances related
to revenues
  The government allowances related to revenues to be used as compensation for future expenses or losses
  are recognized as deferred income and are included 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 current profit and loss.
5.23 Deferred income tax assets/deferred income tax liabilities
  The income tax expenses include the current income tax and deferred income tax.
5.23.1 Current income tax
  On the balance sheet date, the current income tax liabilities (or assets) formed in the current term and the
  previous terms are measured according to the predicted payable (refundable) income tax amount as
  stipulated by tax law.
5.23.2 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

                                                                                                                 64
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  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.
  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.
5.23.3 Offset of income tax
  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 offset.
  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 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 offset.
5.24 Lease
5.24.1 Accounting treatment method of operating lease
  The Group records the operating lease business as a lessee.
  Rental expenses under the operating lease are credited to related costs of the assets or the current profit and
  loss on the straight line basis over the lease terms. The initial direct costs are credited to the current profit
  and loss. Contingent rentals are included in the current profit and loss upon actual accrual.

                                                                                                                   65
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5.25 Changes in main accounting policies and accounting estimates
5.25.1 Changes in main accounting policies
  Nil
5.25.2 Changes in main accounting estimates
  Nil
5.26 Others
  Critical assumptions and uncertain factors adopted for important judgements and accounting estimates
  during the application of the accounting policies
  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 for 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 the future period include:
  Deferred income tax assets
  Within the limit of the likeliness that there is sufficient taxable income to deduct deductible losses, the
  deferred income tax assets shall be recognized according to all deductible losses that have not been utilized,
  which requires the management level to use a lot of judgments to estimate the occurred time and amount of
  taxable income to be obtained in the future, and combine with tax planning strategy to decide the amount
  of deferred income tax assets that shall be recognized.
  Depreciation
  The Group uses straight line method for provision for depreciation within the expected service life after
  considering the residual value of the fixed assets. The Group regularly reviewed the expected service life
  to decide the amount of depreciation expense that will be included in every report period. The expected
  service life is recognized by the Group according to the previous experience on similar assets and in
  combination with the expected technical changes. The depreciation expense shall be adjusted if there are
  significant changes in the previous estimate.
  Service life of intangible assets
  The expected service life of intangible assets are estimated based on actual service life of the previous
  intangible assets of similar natures and functions and according to historical experience and in
  consideration of the duration of the contractual rights or other legal rights applicable to the intangible
  assets.
  In case that the service life of the intangible assets shortens or extends, the amortization period will be
  adjusted in the future period for intangible assets with finite life; for intangible assets with indefinite life, if
  there is evidence showing that their service life is finite, their service life will be estimated in the future
  period and they will be disposed according to the disposal principles of intangible assets with finite life.
  Impairment of long-term assets
  The Group carries out impairment assessment on long-term assets to determine if the recoverable amount

                                                                                                                     66
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   of assets drops to the amount lower than their book value. If the situation shows that the book value of the
   long-term assets may not be fully recovered, the relevant assets will be deemed as having been impaired
   and the impairment loss shall be correspondingly recognized.
   The recoverable amount is the higher in: the net amount of fair value of an asset (or asset group) minus
   disposal expense, and the present value of the estimated future cash flow of the asset (or asset group). It is
   difficult for the Group to accurately estimate the fair value of an asset because of difficulty in obtaining the
   open market price of the asset (or asset group). It needs to make significant judgments on the output,
   selling price, relevant operating cost of the asset (or asset group) and the discount rate used for calculating
   present value when estimating the present value of future cash flow. The Group will use all easily available
   materials in estimating the recoverable amount, 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.

6. Taxes

6.1 Main taxes and tax rate

           Taxes                                            Tax basis                                  Tax rate
                              VAT is levied by the output tax calculated by the taxable revenue
Value added tax               as the tax base after deduction of eligible input VAT in this 17%
                              period.
                              The consumption tax is levied by the taxable revenue as the tax
Consumption tax                                                                               10%-20%
                              base.
Business tax                  The business tax is levied by the taxable revenue as the tax base. 5%
Urban maintenance         and The urban maintenance and construction tax is levied by the
                                                                                          7%
construction tax              actually paid turnover tax as the tax base.
                              The corporate income tax is levied by the taxable income as the
Corporate income tax                                                                          25%
                              tax base.


6.2 Tax incentives

Ningxia Changyu Grape Growing Co., Ltd. (―Ningxia Grwoing‖), a subsidiary of the Company, whose
principal activity is grape growing, is incorporated in Yongning County, Ningxia Hui Autonomous Region.
According to Article 27 of PRC Corporate Income Tax and Article 86 of PRC Corporate Income Tax
Measures for Implementation, it enjoys an exemption of corporate income tax related to grape growing.

Xinjiang Tianzhu Wine Co., Ltd., a subsidiary of the Company (―Xinjiang Tianzhu‖), is an enterprise engaged
in the production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. In
accordance with relevant regulations of Notice concerning Issuing Circular on Preferential Corporate Income

                                                                                                                    67
                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Tax 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 Product
Manufacturing Industry (Xin Zheng Fa [2010] No. 105), the company enjoys preferential corporate income tax
policies. From 2012 to 2016, it shall be exempted from local corporate income tax based on the preferential
policy of corporate income tax rate at 15%. The applicable tax rate in this year is 9%.

Xinjiang Changyu Baron Balboa Chateau Co., Ltd. (―Shihezi Chateau‖), a subsidiary of the Company, is an
enterprise engaged in the production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur
Autonomous Region. In accordance with relevant regulations of Notice concerning Issuing Circular on
Preferential Corporate Income Tax 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 Product Manufacturing Industry (Xin Zheng Fa [2010] No. 105), the company
enjoys preferential corporate income tax policies. From 2011 to 2015, it shall be exempted from local
corporate income tax based on the preferential policy of corporate income tax rate at 15%. The applicable tax
rate in this year is 9%.

7. Notes to consolidated financial statement

7.1 Monetary fund

                                                                                                        Unit: Yuan
                Item                         Ending balance                      Beginning balance
Cash on hand                                                     484,571                                101,660
Bank deposit                                              1,461,185,472                           1,010,259,393
Other monetary funds                                          125,295,029                           135,004,018
Total                                                     1,586,965,072                           1,145,365,071
Including: Total amount of funds
                                                               38,323,476                            43,746,008
deposited abroad


As at June 30, 2015, the bank deposit with restricted ownership of the Group was RMB 2,643,519 Yuan,
which was the company‘s housing fund (December 31, 2014: RMB 2,643,519 Yuan).


As at June 30, 2015, other monetary funds of the Group included pledge deposit of RMB 125,000,000 Yuan
for long-term loans from HSBC of HKD 152,000,000 (converting into RMB 119,867,200 Yuan) by the
Joint-stock Company (December 31, 2014: RMB 125,000,000 Yuan), refundable deposit for bills payable of
Shihezi Chateau of RMB 0 Yuan (December 31, 2014: RMB 10,000,000 Yuan) and guaranty money for
deposits in the public card of the Joint-stock Company of RMB 295,029 Yuan (December 31, 2014: RMB
4,018 Yuan).


As at June 30, 2015, the Group had monetary fund of RMB 38,323,476 Yuan that was deposited abroad
(December 31, 2014: RMB 43,746,008 Yuan).


The bank deposit of the Group including time deposit ranging from 3 months to 1 year as at June 30, 2015
was RMB 28,000,000 Yuan (December 31, 2014: RMB 47,245,260 Yuan), with the interest rates ranging from

                                                                                                                  68
                                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


2.22%-3.3%.



7.2 Bills receivable

7.2.1 Classification of bills receivable

                                                                                                                               Unit: Yuan
                           Type                                    Ending balance                         Beginning balance
Bank‘s acceptance bill                                                         335,703,960                                138,315,319
Trade acceptance
Total                                                                           335,703,960                                138,315,319



7.2.2 Bills receivable pledged by the Company at the end of term

        Nil

7.2.3 Bills receivable endorsed or discounted by the Company at the end of term but not yet
matured as of the balance sheet date

                                                                                                                          Unit: Yuan
                                                 Amount terminating recognition at the end     Amount not terminating recognition at
                    Item
                                                                 of term                                 the end of term
Bank‘s acceptance bill                                                        104,109,317
Trade acceptance
Total                                                                          104,109,317




7.2.4 Bills receivable reclassified as accounts receivable by the Company due to the default of
drawer at the end of term

        Nil

7.3 Accounts receivable

7.3.1 Accounts receivable disclosed by type

                                                                                                                               Unit: Yuan
                                    Ending balance                                            Beginning balance
                   Book balance           Bad debt provision                  Book balance           Bad debt provision
    Type
                Amount      Proportion Amount Accrued Book value           Amount      Proportion Amount Accrued Book value
                                             proportion                                                 proportion
Accounts
receivable of
significant
single        65,290,161          49.9%                        65,290,161 67,557,319         46.4%                        67,557,319
amount and
single
accrued bad


                                                                                                                                         69
                                                                Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


debt
provision
Accounts
receivable
accrued bad
debt
provision by
credit risk
features
Accounts
receivable of
insignificant
single
amount and 65,514,484            50.1%                  65,514,484 78,115,092      53.6%                    78,115,092
single
accrued bad
debt
provision
Total          130,804,645       100%                  130,804,645 145,672,411     100%                    145,672,411



The credit term of accounts receivable is normally one month. Major customers can be granted a credit term
up to three months. The accounts receivable are free from interest.


7.3.2 Bad debt provision accrued, transferred back or received in this term

The bad debt provision accrued in this term is RMB 0 Yuan; and that transferred back or received in
this term is RMB 0 Yuan.
7.3.3 Accounts receivable actually cancelled after verification in this term
        Nil

7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance

                               Relationship with the                                                Percentage of total
            Unit                                         Amount                    Period
                                     Company                                                        accounts receivable
Nonggongshang
Supermarket   (Group) Third party                              16,949,440 Within 1 year                            13.0%
Co., Ltd.
Wal-mart         (China)
                         Third party                           16,327,506 Within 1 year                            12.5%
Investment Co., Ltd.
Suguo Supermarket Co.,
                       Third party                             10,113,306 Within 1 year                             7.7%
Ltd.
Beijing    Wu      Mart
                         Third party                            8,741,886 Within 1 year                             6.7%
Business Group Co., Ltd.
Kangcheng Investment
                             Third party                        6,795,264 Within 1 year                             5.2%
(China) Co., Ltd.
Total                                      --                  58,927,402            --                            45.1%


7.3.5 Accounts receivable terminating recognition due to transfer of financial assets

            Nil

                                                                                                                           70
                                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.3.6 Accounts receivable transferred and included in assets and liabilities

            Nil

7.4 Advanced payment

7.4.1 Advanced payment listed by age

                                                                                                                          Unit: Yuan

                                                  Ending balance                                  Beginning sum
                  Age
                                         Amount                Proportion                   Amount                Proportion

Within 1 year                                1,862,640                                               8,073,786

1-2 years

2-3 years

More than 3 years

Total                                        1,862,640              --                               8,073,786         --



7.4.2 Advanced payment collected by the prepaid parties of top 5 units ranked by the ending
balance

                                                                                                                             Percentage
                                           Relationship with the                                                               of total
                        Unit                                         Amount       Age         Reason for unsettlement
                                                    Group                                                                    advanced
                                                                                                                             payment%
                                                                                                                                 25.7%
                                                                               Within 1    Prepaid electricity purchasing
Yantai Power Supply Co., Ltd.            Third party                 479,497
                                                                               year        fund
                                                                                                                                   3.9%
Langfang Beitian Landscape Engineering                                         Within 1
                                         Third party                  72,254               Prepaid afforestation fee
Co., Ltd.                                                                      year
                                                                                                                                   3.6%
                                                                               Within 1
Xi‘an No. 1 Print Factory               Third party                  66,681               Failure to receive the goods
                                                                               year
                                                                                                                                   3.5%
                                                                               Within 1
Chongqing Hoson Glass Co., Ltd.          Third party                  66,000               Failure to receive the goods
                                                                               year
                                                                                                                                   2.7%
Ningxia Tengyida Industry & Trade Co.,                                         Within 1
                                         Third party                  50,050               Failure to receive the goods
Ltd.                                                                           year

                                                                     734,482                                                     39.4%
Total                                                  --                             --                  --




                                                                                                                                    71
                                                                        Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.5 Interest receivable

7.5.1 Interest receivable

                                                                                                                                Unit: Yuan
                    Item                                 Ending balance                                Beginning balance
Time deposit                                                                    5,730,457                                    3,619,429
Entrusted loan
Bond investment
Total                                                                           5,730,457                                    3,619,429


7.6 Other accounts receivable

7.6.1 Other accounts receivable disclosed by type

                                                                                                                                Unit: Yuan
                                    Ending balance                                            Beginning balance
                     Book balance      Bad debt provision                     Book balance          Bad debt provision
    Type                                                        Book                                                         Book
                  Amount Proportion Amount        Accrued       value       Amount Proportion Amount           Accrued       value
                                                 proportion                                                   proportion
Other
accounts
receivable of
significant
single amount 40,921,858       76.2% 7,199,521       17.6% 33,722,337 16,540,213            42.9% 7,199,521       43.5% 9,340,692
and single
accrued bad
debt
provision
Other
accounts
receivable
accrued bad
debt
provision by
credit risk
features
Other
accounts
receivable of
insignificant
single amount 12,807,998       23.8%                          12,807,998 22,021,610         57.1%                          22,021,610
and single
accrued bad
debt
provision
Total            53,729,856    100% 7,199,521        13.4% 46,530,335 38,561,823            100% 7,199,521        18.7% 31,362,302



Other accounts receivable of significant single amount and single accrued bad debt provision at the
end of term:


                                                                                                                               Unit: Yuan


                                                                                                                                         72
                                                                      Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                                                        Ending balance
     Other accounts
   receivable (by unit)          Other accounts                                       Accrued
                                                        Bad debt provision                                     Reason for accrual
                                   receivable                                        proportion
Tiantong Securities Co.,                                                                                This company is in bankruptcy
                                          7,199,521                  7,199,521                   100%
Ltd.                                                                                                    liquidation.
Total                                     7,199,521                  7,199,521              --                         --


7.6.2 Bad debt provision accrued, transferred back or received in this term

The bad debt provision accrued in this term is RMB 0 Yuan; and that transferred back or received in
this term is RMB 0 Yuan.

7.6.3 Other accounts receivable actually cancelled after verification in this term

        Nil

7.6.4 Other accounts listed by nature

                                                                                                                                 Unit: Yuan
                  Nature                               Ending book balance                              Beginning book balance
Deposit and guaranty money receivable                                          28,030,128                                     8,651,139
Fund of disbursement receivable                                                 5,546,178                                     3,138,780
Consumption tax and house duty
                                                                               10,015,633                                     8,772,123
reimbursement
Other                                                                          10,137,917                                    17,999,781
Total                                                                          53,729,856                                    38,561,823




7.6.5 Other accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance

                                                                                                                                 Unit: Yuan
                                                                                    Percentage of total ending
                                                                                                                     Ending balance of
                Unit                    Nature     Ending balance      Age          balance of other accounts
                                                                                                                     bad debt provision
                                                                                           receivable
YEDA Construction Enterprise
                               Guaranty                             Within 1
Endowment Insurance Management                        12,325,300                                             22.9%
                               money                                year
Office
Hi-tech Industrial Development
                                                                    Within 1
Zone Branch, Fushan District          Tax rebate        8,530,927                                            15.9%
                                                                    year
Office, SAT
                                      Guaranty                      Within 1
YEDA Finance Bureau                                     7,866,110                                            14.6%
                                      money                         year
                                                                    More than 3
Tiantong Securities Co., Ltd          Investment        7,199,521                                            13.4%            7,199,521
                                                                    years
YEDA Construction Industry            Guaranty
                                                        5,000,000 2-3years                                    9.3%
Association                           money




                                                                                                                                          73
                                                                             Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.6.6 Other accounts receivable terminating recognition due to transfer of financial assets

          Nil

7.6.7 Other accounts receivable transferred and included in assets and liabilities

          Nil

7.7 Inventories

7.7.1 Inventory classification

                                                                                                                                      Unit: Yuan

                                               Ending balance                                             Beginning balance

         Item                                   Depreciation                                                Depreciation
                            Book balance                           Book value         Book balance                              Book value
                                                  provision                                                   provision

Raw materials                    43,418,043                           43,418,043            74,820,215                             74,820,215

Goods in process                749,953,172                          749,953,172           919,070,983                            919,070,983

Commodity stocks                715,348,751        15,324,375        700,024,376          1,108,809,575         15,324,375      1,093,485,200

Total                          1,508,719,966       15,324,375      1,493,395,591          2,102,700,773         15,324,375      2,087,376,398


7.7.2 Inventory depreciation provision

                                                                                                                                      Unit: Yuan
                                                     Increase of this term                   Decrease of this term
                             Beginning
         Item                                                                        Transfer back or                         Ending balance
                              balance              Accrual            Other                                    Other
                                                                                        write-off

Raw materials

Goods in process

Commodity stocks                15,324,375                                                                                        15,324,375

Total                           15,324,375                                                                                        15,324,375


7.8 Available-for-sale financial assets

7.8.1 Available-for-sale financial assets

                                                                                                                                      Unit: Yuan
                                                        Ending balance                                     Beginning balance
                Item                        Book              Impairment          Book          Book            Impairment         Book
                                           balance             provision          value        balance           provision         value
Available-for-sale financial
instruments:
Available-for-sale equity                  10,000,000             10,000,000                  10,000,000             10,000,000


                                                                                                                                                74
                                                                         Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


instruments:
    Fair value measurement
    Cost measurement                       10,000,000          10,000,000                 10,000,000            10,000,000
Total                                      10,000,000          10,000,000                 10,000,000            10,000,000


7.8.2 Available-for-sale financial assets by cost measurement at the end of term

                                                                                                                                   Unit: Yuan
                                Book balance                               Impairment provision                                Cash
                                                                                                               Shareholding
                         Increase Decrease                                Increase Decrease                                  dividend
 Invested unit                                                                                                  ratio in the
               Beginning of this   of this            Ending    Beginning of this   of this        Ending                     of this
                                                                                                               invested unit
                           term     term                                    term     term                                      term
Yantai Dingtao
Construction
and            10,000,000                            10,000,000 10,000,000                       10,000,000              18%
Development
Co., Ltd.
Total            10,000,000                          10,000,000 10,000,000                       10,000,000         --


7.8.3 Changes of impairment of available-for-sale financial assets in the report period

                                                                                                                Unit: Yuan
  Classification of available-for-sale       Available-for-sale equity         Available-for-sale debt
                                                                                                                         Total
            financial assets                       instruments                      instruments
Accrued impairment balance at the
                                                            10,000,000                                                           10,000,000
beginning of term
Accrued amount of this term
Including: Transferred in from other
comprehensive income
Decrease of this term
Including: Fair value recovered and
 transferred back after date
Accrued impairment balance at the end
                                                            10,000,000                                                           10,000,000
of term



7.9 Fixed assets

7.9.1 Particulars of fixed assets

                                                                                                                                    Unit: Yuan
                                                             Machineries and
               Item                      Buildings                                       Motor vehicles                   Total
                                                               equipment
Ⅰ Original book value:
  1. Beginning balance                   2,059,698,368             1,373,974,100                  25,774,703               3,459,447,171
  2. Increase                               38,688,586                   6,745,373                   272,012                     45,705,971
    2.1 Acquisition                          7,516,359                   6,575,470                   272,012                     14,363,841
     2.2 Transfer in from
                                            31,172,227                    169,903                                                31,342,130
construction in progress
     2.3 Increase from
enterprise merger


                                                                                                                                              75
                                                            Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                                 Machineries and
            Item                 Buildings                               Motor vehicles               Total
                                                   equipment
    2.4 Others
  3. Decrease                                               128,735                                           128,735
    3.1 Disposal or retirement                              128,735                                           128,735
    3.2 Others
  4. Ending balance              2,098,386,954         1,380,590,738              26,046,715           3,505,024,407
Ⅱ Accumulated depreciation
  1. Beginning balance             269,635,846          636,170,373               20,958,597             926,764,816
  2. Increase                       28,844,515           45,477,232                1,054,358              75,376,105
    2.1 Accrual                     28,844,515           45,477,232                1,054,358              75,376,105
    2.2 Others
  3. Decrease                                               106,046                                           106,046
    3.1 Disposal or retirement                              106,046                                           106,046
    3.2 Others
  4. Ending balance                298,480,361          681,541,559               22,012,955           1,002,034,875
Ⅲ Impairment provision
  1. Beginning balance
  2. Increase
    2.1 Accrual
    2.2 Others
  3. Decrease
    3.1 Disposal or retirement
    3.2 Others
  4. Ending balance
Ⅳ Book value
  1. Ending book value           1,799,906,593          699,049,179                4,033,760           2,502,989,532
  2. Beginning book value        1,790,062,522          737,803,727                4,816,106           2,532,682,355




7.9.2 Temporarily idle fixed assets

      Nil

7.9.3 Fixed assets under finance leases

      Nil

7.9.4 Fixed assets under operating lease

      Nil

7.9.5 Fixed assets without property certificates

                                                                                                              Unit: Yuan




                                                                                                                        76
                                                                   Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report



                                                                                           Reason for not receiving property
                  Item                                     Book value
                                                                                                      certificate

Xinjiang Shihezi Bureau Workshop and
                                                                          253,830,397 Under transaction
Factory

Beijing Chateau European Town, Main
                                                                          230,176,069 Under transaction
Building and Service Building

Ningxia Wine-making Combined
                                                                           76,821,774 Under transaction
Workshop and Office Building


Office of Sales Company Provincial
                                                                           43,636,695 Under transaction
Sub-office


Xinjiang Tianzhu Fermentation and
                                                                           26,161,479 Under transaction
Storage Workshop


Ice Wine Chateau Office Building and
                                                                           10,275,726 Under transaction
Packing Workshop


Fermentation Centre Office Building,
                                                                            6,407,793 Under transaction
Laboratory Building and Workshop


Changyu (Jingyang) Vintage Workshop                                         4,824,089 Under transaction


Kylin Packaging Finished Goods
                                                                            2,714,223 Under transaction
Warehouse and Workshop




7.10 Construction in progress

7.10.1 Construction in progress

                                                                                                                        Unit: Yuan

                                                         Ending balance                            Beginning balance
                  Item
                                                          Impairment                                   Impairment
                                          Book balance                    Book value    Book balance                Book value
                                                           provision                                    provision
Construction and Reconstruction Project
                                               297,988                        297,988        182,767                      182,767
of Joint-stock Company

Xinjiang Tianzhu Technological
                                               317,759                        317,759        317,758                      317,758
Innovation Reconstruction Project

AFIP Tourism Square Reconstruction
                                                28,000                         28,000         28,000                       28,000
Project


Ningxia Chateau Road Project                 4,297,650                      4,297,650      4,083,378                    4,083,378



Icewine Chateau Engineering Project            730,776                        730,776         69,840                       69,840



                                                                                                                                 77
                                                         Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report



Sales Company Building Project             45,827,492          45,827,492    39,316,089                  39,316,089


Langfang Castel Workshop
                                                                                271,057                     271,057
Reconstruction

Jingyang Fermentation Workshop
                                              994,385             994,385       794,385                     794,385
Reconstruction Project


Shihezi Chateau Construction Project       81,702,747          81,702,747    69,298,865                  69,298,865


Xinjiang Sales Company Construction
                                           10,729,350          10,729,350      6,513,350                  6,513,350
Project


Ningxia Chateau Construction Project      145,794,295         145,794,295   127,432,353                 127,432,353



Xianyang Chateau Construction Project     243,952,375         243,952,375   222,927,964                 222,927,964


R&D and Manufacturing Center
                                         1,485,232,709      1,485,232,709 1,127,641,913               1,127,641,913
Construction Project


Tinlot Chateau Construction Project        64,104,576          64,104,576    73,517,357                  73,517,357


Huanren Brewing Workshop Construction
                                           27,545,868          27,545,868    26,261,424                  26,261,424
Project

Chang‘an Chateau Tourism Construction
                                           36,853,039          36,853,039      1,810,000                  1,810,000
Project

Roullet-Fransac Construction Project          927,780             927,780

Total                                    2,149,336,789      2,149,336,789 1,700,466,500               1,700,466,500




                                                                                                                  78
                                                                                                                                                           Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




7.10.2 Changes of major construction in progress in this term

                                                                                                                                                                                                                             Unit: Yuan
                                                                     Transferred                                Proportion of                       Accumulative         Including:
                                                                                                                                                                                         Capitalization
                                       Beginning                                    Other        Ending         accumulative      Construction      capitalization     capitalization
        Item            Budget                         Increase       to fixed                                                                                                          ratio of interest   Capital source
                                        balance                                    decrease      balance       project input in    progress          amount of       amount of interest
                                                                       assets                                                                                                             in this term
                                                                                                                   budget                              interest         in this term
Xinjiang Tianzhu
Technological
Innovation                3,500,000         317,758                                                 317,758            92.70%               92.7%                                                                    Others
Reconstruction
Project
Yantai Chateau Mu
Ziguo Vineyard           30,000,000                                                                                    68.50%               68.5%                                                                    Others
Project
Sales Company
                        161,350,000      39,316,089      6,511,404                               45,827,493            92.20%               92.2%                                                                    Others
Building Project
Shihezi Chateau
Construction Project
                        780,000,000      75,812,215     27,525,911   10,556,029      350,000     92,432,097            85.90%               85.9%                                                                    Others
(including Xinjiang
Sales)
Ningxia Chateau
Construction Project
                        414,150,000     131,515,731     22,175,485     2,311,797   1,287,474    150,091,945            96.10%               96.1%                                                                    Others
(including Ningxia
Plantation)
Xianyang Chateau
Construction Project
                        620,740,000     224,737,964     56,067,450                              280,805,414            98.20%               98.2%                                                                    Others
(including Chang‘an
Tourism)
R&D and
Manufacturing
                       1,693,970,000   1,127,641,913   357,590,796                             1,485,232,709           87.70%               87.7%                                                                    Others
Center Construction
Project
Tinlot Chateau
                        192,400,000      73,517,357      9,061,618   18,474,401                  64,104,574            91.10%               91.1%                                                                    Others
Construction Project
Huanren Brewing
Workshop                 31,000,000      26,261,424      1,284,444                               27,545,868            88.80%               88.8%                                                                    Others
Construction Project
Total                  3,927,110,000   1,699,120,451   480,217,108   31,342,227    1,637,474 2,146,357,858            --               --                                                                                    --




                                                                                                                                                                                                                                    79
                                                            Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


As at June 30, 2015, there is no indication for impairment in construction in process of the Group, so
no provision is made.

7.11 Productive biological assets

7.11.1 Productive biological assets adopting cost measurement mode

                                                                                                             Unit: Yuan

                                                 Animal
             Item             Plantation                        Forestry         Aquaculture            Total
                                                Husbandry

Ⅰ Original book value

  1.     Beginning balance       161,384,261                                                             161,384,261

  2.     Increase                  26,057,977                                                             26,057,977

       2.1 Outsourcing

       2.2 Self cultivation        26,057,977                                                             26,057,977

  3.     Decrease                   1,945,881                                                              1,945,881

       3.1 Disposal                 1,945,881                                                              1,945,881

       3.2 Others

  4. Ending balance              185,496,357                                                             185,496,357

Ⅱ Accumulated
depreciation

  1.     Beginning balance          9,661,020                                                              9,661,020

  2.     Increase                     847,853                                                                847,853

       2.1 Accrual                    847,853                                                                847,853

  3.     Decrease

       3.1 Disposal

       3.2 Others

  4. Ending balance                10,508,873                                                             10,508,873

Ⅲ Impairment provision

  1.     Beginning balance

  2.     Increase

       2.1 Accrual

  3.     Decrease

       3.1 Disposal

       3.2 Others

  4. Ending balance



                                                                                                                       80
                                                             Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Ⅳ Book value

  1.    Ending book value         174,987,484                                                             174,987,484

  2.    Beginning book
                                  151,723,241                                                             151,723,241
        value




        As at June 30, 2015, no ownership of the biological asset is restricted.

        As at June 30, 2015, the productive biological assets of this Group include mature productive biological
        assets of RMB 24,322,692 Yuan (December 31, 2014: RMB 23,758,058 Yuan) and immature
        productive biological assets of RMB 150,664,792 Yuan (December 31, 2014: RMB 127,965,183 Yuan).
        As at June 30, 2015, there is no indication that biological assets may be impaired, and no provision is
        made.



7.12 Intangible assets

7.12.1 Particulars of intangible assets

                                                                                                                 Unit: Yuan

                                                                             Non-patented
                Item             Land use right        Patent right                                    Total
                                                                              technology

Ⅰ Original book value


   1.    Beginning balance             459,367,374            37,017,024                                  496,384,398

   2.     Increase                       5,700,281               211,000                                       5,911,281
        2.1 Acquisition                  5,700,281               211,000                                       5,911,281
        2.2 Internal R&D
        2.3 Increase from
enterprise merger
   3.     Decrease
        3.1 Disposal
   4.    Ending balance                465,067,655            37,228,024                                  502,295,679
Ⅱ Accumulated amortization

   1.    Beginning balance              36,283,156             7,150,048                                   43,433,204

   2.    Increase                        4,429,074             1,276,172                                       5,705,246
        2.1 Accrual                      4,429,074             1,276,172                                       5,705,246
   3.    Decrease
        3.1 Disposal



                                                                                                                           81
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


   4.     Ending balance                         40,712,230                 8,426,220                                         49,138,450
ⅢImpairment provision

   1.     Beginning balance

   2.     Increase
        2.1 Accrual
   3.     Decrease
        3.1 Disposal
   4.     Ending balance
Ⅳ Book value
  3.    Ending book value                       424,355,425                28,801,804                                        453,157,229

  4.    Beginning book value                    423,084,218                29,866,976                                        452,951,194




7.12.2 Land use right without property certificates
                                                                                                                                  Unit: Yuan

                                                                                                 Reason for not receiving property
                         Item                                       Book value
                                                                                                            certificate

 A-48, 49, 51 and 52 residential areas in YEDA                      150,357,759                          Under transaction




7.13 Goodwill

7.13.1 Original Book Value of Goodwill
                                                                                                                                  Unit: Yuan

  Name of the invested                                   Increase                             Decrease
                                Beginning
 unit or matter forming                          Formed from                                                          Ending balance
                                 balance                                Other       Disposal             Other
          goodwill                            enterprise merger

Etablissements       Roullet     13,112,525                                                                                     13,112,525
Fransac
Total                            13,112,525                                                                                     13,112,525




7.14 Long term unamortized expenses

                                                                                                                                 Unit: Yuan

          Item            Beginning balance           Increase             Amortization          Other decrease           Ending balance

Land lease fees                    60,810,188                 620,540               859,174                                     60,571,554

Land-use fees                      47,506,370                                       640,109                                     46,866,261


                                                                                                                                           82
                                                                    Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Afforestation fees               40,596,058            2,255,880            5,870,009                                 36,981,929

Renovation costs                 36,733,685           10,591,892             1,798,011                                45,527,566

Other                            16,265,304            8,968,190            1,470,203                                 23,763,291

Total                           201,911,605           22,436,502           10,637,506                              213,710,601


7.15 Deferred income tax assets/liabilities

7.15.1 Unoff-set deferred income tax assets

                                                                                                                      Unit: Yuan

                                                              Ending Balance                      Beginning Balance

                                                       Deductible                           Deductible
                        Item                                           Deferred income                       Deferred income
                                                       temporary                             temporary
                                                                           tax assets                           tax assets
                                                       difference                            difference

Asset impairment provision                                32,523,896            8,130,974       32,523,896            8,130,974

Unrealized profits from inter-company
                                                         516,757,920         129,189,480       632,127,732        158,031,933
transactions

Deductible loss                                          193,223,452           52,162,017      160,950,941         44,093,889

Unpaid bonus                                              52,327,095           13,081,774       95,326,160         23,831,540

Dismission welfare                                        14,329,320            3,616,267       15,936,065            3,984,016

Deferred income                                           86,413,951           15,908,191       88,423,710         16,114,471

Total                                                    895,575,634         222,088,703     1,025,288,504        254,186,823




7.15.2 Unoff-set deferred income tax liabilities

                                                                                                                       Unit: Yuan

                                                              Ending Balance                      Beginning Balance

                        Item                        Taxable temporary Deferred income Taxable temporary      Deferred income
                                                       difference        tax liabilities     difference       tax liabilities

Assets appraisal appreciation in business
                                                          18,049,961            4,512,491       18,262,543            4,565,636
combination under non-common control

Change of fair value of financial assets for sale

Total                                                     18,049,961            4,512,491       18,262,543            4,565,636



7.15.3 Details of unconfirmed deferred income tax assets
                                                                                                                      Unit: Yuan



                                                                                                                                  83
                                                                Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report



                       Item                                Ending balance                     Beginning balance

Deductible loss                                                              1,363,422                            1,363,422

Total                                                                        1,363,422                            1,363,422



7.15.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
                                                                                                                  Unit: Yuan

           Year                      Ending sum             Beginning sum                       Remark

2015                                          1,363,422               1,363,422

Total                                         1,363,422               1,363,422                    --




7.16 Other non-current assets

                                                                                                                  Unit: Yuan

                      Item                                Ending balance                     Beginning balance

Ningxia planting biological assets transfer
                                                                           15,751,605                            15,751,605
expenses receivable

Total                                                                      15,751,605                            15,751,605




7.17 Short-term loan

7.17.1 Classification of short-term loan
                                                                                                                  Unit: Yuan

                      Item                                Ending balance                     Beginning balance

Pledge loan

Collateralised loan

Guaranteed loan

Fiduciary loan                                                       300,000,000                           300,000,000
Total                                                                300,000,000                           300,000,000



7.18 Bills payable

                                                                                                                  Unit: Yuan

                      Type                                Ending balance                     Beginning balance



                                                                                                                              84
                                                               Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Commercial acceptance bill                                                                                          10,000,000

Banker‘s acceptance bill

Total                                                                                                               10,000,000




7.19 Accounts payable

7.19.1 List of accounts payable

                                                                                                                     Unit: Yuan

                      Item                              Ending balance                          Beginning balance

Within one year                                                       126,564,586                               357,811,822

Total                                                                 126,564,586                               357,811,822


7.19.2 Significant amounts payable aged more than one year

As at June 30, 2015, the Group has no significant amounts payable aged more than one year.


7.20 Advances from customers

7.20.1 List of advances from customers

                                                                                                                     Unit: Yuan

                         Item                                Ending sum                           Beginning sum

Advances from customers for selling goods                                  248,266,622                          215,127,598

Total                                                                      248,266,622                          215,127,598



7.20.2 Advances from customers of significant amount aged more than one year


As at June 30, 2015, the Group has no advances from customers of significant amount aged more
than one year.

7.21 Employee benefits payable

7.21.1 List of employee benefits payable
                                                                                                                     Unit: Yuan

                  Item                  Beginning balance       Increase             Decrease             Ending balance

1. Short-term compensation                     142,954,964       149,454,532             186,675,984                105,733,512



                                                                                                                                 85
                                                                  Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                    Item                Beginning balance         Increase               Decrease               Ending balance

2. Post-employment welfare – defined
                                                     57,563         16,591,791               15,956,772                    692,582
contribution plan

3. Dismission welfare                            15,936,065            818,302                2,425,047                 14,329,320

4.Other welfare due within one year

Total                                          158,948,592         166,864,625              205,057,803                120,755,414




7.21.2 List of short-term compensation

                                                                                                                         Unit: Yuan

                   Item                 Beginning balance            Increase               Decrease             Ending balance

1. Salaries, bonuses, allowances and
                                                 139,917,954            129,232,170            166,962,817             102,187,307
subsidies

2. Staff welfare                                       5,968                 5,995,621              5,991,907                9,682

3. Social insurance charges                          161,489                 8,149,300              7,840,847              469,942

Including: Medical insurance                         158,487                 6,552,012              6,310,420              400,079
            Injury insurance                           1,572                  891,854                856,608                36,818
            Maternity insurance                        1,430                  705,434                673,819                33,045
4. Housing fund                                       70,236                 4,602,265              4,433,923              238,578
5. Union fee and education fee                     2,799,317                 1,475,176              1,446,490            2,828,003
6. Short-term compensated absences                            -                      -                      -                     -


7. Short-term profit-sharing plan                             -                      -                      -                     -

8. Others                                                     -                      -                      -                     -

Total                                            142,954,964            149,454,532            186,675,984             105,733,512



7.21.3 List of defined contribution plan

                                                                                                                         Unit: Yuan

                   Item                 Beginning balance            Increase               Decrease             Ending balance

1. Basic endowment insurance                          55,963             15,669,148             15,097,837                 627,274

2. Unemployment insurance                              1,600                  922,643                858,935                65,308

3. Enterprise annuity payment

Total                                                 57,563             16,591,791             15,956,772                 692,582



7.21.4 Dismission welfare

                                                                                                                                  86
                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




                                                                                                                             Unit: Yuan

                    Item                       Beginning balance         Increase                 Decrease             Ending balance

1. Compensation for server of labor
                                                                               818,302                       818,302
relation

2. Compensation for early retirement                    15,936,065                                      1,606,745          14,329,320

Total                                                   15,936,065             818,302                  2,425,047          14,329,320




7.223 Taxes payable
                                                                                                                            Unit: Yuan

                            Item                                     Ending balance                     Beginning balance

Value added tax                                                                     -64,622,839                          -62,755,555

Consumption tax                                                                       9,241,487                           18,849,955

Business tax                                                                           314,361                             1,005,135

Corporate income tax                                                                  6,435,826                          109,836,980

Individual income tax                                                                 7,215,706                            6,644,281

Urban maintenance and construction tax                                                2,152,865                            4,831,936

Urban land use tax                                                                    1,412,948                            1,519,318

Property tax                                                                          1,694,102                              898,914

Other                                                                                 2,258,342                            6,673,084

Total                                                                               -33,897,202                           87,504,048


7.23 Interest payable
                                                                                                                            Unit: Yuan

                            Item                                     Ending balance                     Beginning balance

Long-term loan interest of installment and interest
                                                                                       463,347                             1,723,974
charges, repayment of principal at maturity

Enterprise bond interest

Interest payable of short-term loan                                                   5,428,152                            1,751,667

Preferred stock/perpetual capital securities interest
divided into financial liabilities

Other

Total                                                                                 5,891,499                            3,475,641




                                                                                                                                       87
                                                       Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.24 Other payables

7.25.1 Other payables listed according to the nature

                                                                                                          Unit: Yuan

                        Item                     Ending balance                       Beginning balance

Distributors deposit payable                                      137,190,180                       134,470,408

Equipment purchases and construction costs
                                                                   77,090,175                           90,857,839
payable

Transportation charges payable                                     11,716,093                           24,388,114

Payable for trademark usage of the Group                           52,568,600                           77,809,993

Advertising expenses payable                                      206,529,371                           43,488,770

Other loans                                                        22,522,636                           22,522,636

Employee cash deposit                                               2,905,469                           10,005,000

Payables for deposit of suppliers                                  10,593,744                            2,263,984

Contract fee payable                                               34,155,771                           27,132,371

Other                                                              28,458,665                           36,865,202

Total                                                             583,730,704                       469,804,317


7.25 Other current liabilities

                                                                                                          Unit: Yuan

                       Item                    Ending balance                       Beginning balance
Deferred income                                                 12,398,717                              12,398,718
Total                                                           12,398,717                              12,398,718




7.26 Long-term loans

7.26.1 Classification of long-term loans

                                                                                                          Unit: Yuan

                       Item                    Ending balance                       Beginning balance
Pledge loan                                                   119,867,200                           119,912,800
Collateralised loan
Guaranteed loan
Fiduciary loan                                                  68,699,000                              89,467,200
Total                                                        188,566,200                            209,380,000




                                                                                                                     88
                                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.27 Deferred income

                                                                                                                                   Unit: Yuan

          Item            Beginning balance             Increase              Decrease            Ending balance       Forming reason

Government
                                    76,024,992              4,312,000              6,321,758            74,015,234
allowance

Total                               76,024,992              4,312,000              6,321,758            74,015,234            --


Projects related to government allowance

                                                                                                                               Unit: Yuan

                                                        Amount of Amount counted
                                                          subsidy           into
                                        Beginning                                         Other         Ending          Relating to
          Item of liabilities                              newly        non-operating
                                         balance                                         changes        balance       assets/earnings
                                                        increased of revenue of this
                                                         this term          term

Miyun County Committee
                                           3,555,780                          444,473                    3,111,307 Relating to assets
Propaganda Department Transfer

Grape bulk wine brewing project            9,044,116                          717,437                    8,326,679 Relating to assets

Ningxia industrial revitalization
and technical transformation              11,065,000                         1,647,500                   9,417,500 Relating to assets
project

Special fund for Wuyouyixin
                                              120,000                          30,000                       90,000 Relating to assets
industrial cluster

Subsidy payments for wine grape               470,000                                                     470,000 Relating to earnings

Modern agriculture produced
                                              324,000                                                     324,000 Relating to earnings
grape development subsidy

Xinjiang industrial revitalization
and technical transformation             21,330,000                                                    21,330,000 Relating to assets
project

Changyu Chateau project                  12,758,700                          1,611,150                  11,147,550 Relating to assets

Special fund for infrastructure
                                           3,357,900                          239,850                    3,118,050 Relating to assets
construction

Special fund for wine electronic
                                           5,193,474                          333,527                    4,859,947 Relating to assets
traceability system

Special fund for wine industry
                                              930,000                                                     930,000 Relating to assets
development

Special fund for construction of
                                         10,000,000                           500,000                    9,500,000 Relating to assets
Peninsula Blue Economic Zone


                                                                                                                                           89
                                                                     Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                                   Amount of Amount counted
                                                     subsidy           into
                                     Beginning                                         Other    Ending          Relating to
          Item of liabilities                        newly         non-operating
                                      balance                                         changes   balance       assets/earnings
                                                   increased of revenue of this
                                                    this term          term

Scientific research funds subsidy
                                          62,900                              3,200                 59,700 Relating to assets
of National 863 Plan

Financial subsidy for SAP IT
                                       5,220,000                         290,000                 4,930,000 Relating to assets
Project

Subsidy for project integrating IT
                                        100,000                                                   100,000 Relating to earnings
application with industrialization

Cross-border e-commerce project        2,179,440                         122,222                 2,057,218 Relating to earnings

Daliuhang grape base construction
                                       2,080,000                         260,000                 1,820,000 Relating to assets
project

Industry transformation and
                                                     4,000,000                                   4,000,000 Relating to earnings
upgrading project

Special fund for major
                                                       312,000                                    312,000 Relating to assets
technological innovation project

Subsidy for agricultural science        632,400                          122,400                  510,000 Relating to earnings

Total                                 88,423,710     4,312,000          6,321,759               86,413,951

Minus: divided into current
                                      12,398,718                                                12,398,717
liabilities

Non-current liabilities               76,024,992                                                74,015,234            --




7.28 Other non-current liabilities

                                                                                                                           Unit: Yuan

                          Item                                  Ending balance                    Beginning balance

Employee compensation payable                                                    3,998,352                             3,998,352

Total                                                                            3,998,352                             3,998,352


As at June 30, 2015, the employee compensation payable is the guarantee fund for working
responsibility deducted per a certain ratio from the year-end bonuses of employees with the level
above sales manager of the Company, which will pay from 2016 to 2017.




                                                                                                                                   90
                                                                             Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.29 Share capital

                                                                                                                                        Unit: Yuan

                                                                     Increase or decrease (+,-)

                                                                               Share
                      Beginning                                             transferred
                                          Issue new                                                                             Ending balance
                        balance                         Allocate shares         from              Other            Subtotal
                                           shares
                                                                           accumulation
                                                                                fund

Total shares           685,464,000                                                                                                   685,464,000




7.30 Capital surplus

                                                                                                                                        Unit: Yuan

               Item                       Beginning balance                 Increase                    Decrease              Ending balance

Capital premium (Share capital
                                                    557,222,454                                                                      557,222,454
premium)

Other capital surplus                                  5,916,588                                                                       5,916,588

Total                                               563,139,042                                                                      563,139,042




7.31 Other comprehensive earnings

                                                                                                                                        Unit: Yuan

                                                                               Amount incurred in this term

                                                                          Minus: profit or
                                                            Amount        loss in this term
                                                                                              Minus: Attributable Attributable
                                            Beginning       incurred      transferred from                                              Ending
                 Item                                                                         income      to parent    to minority
                                             balance        before             other                                                    balance
                                                                                                tax       company      shareholders
                                                         income tax in comprehensive
                                                                                              expense     after tax      after tax
                                                           this term      earnings before



1. Other comprehensive earnings not
to be reclassified into profit and loss
later

Including: change in net liabilities
and net assets from recalculated
defined benefit plan

        Share enjoyed in other


                                                                                                                                                   91
                                                                         Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


                                                                           Amount incurred in this term

                                                                      Minus: profit or
                                                         Amount       loss in this term
                                                                                          Minus: Attributable Attributable
                                          Beginning      incurred     transferred from                                             Ending
                 Item                                                                     income     to parent    to minority
                                           balance        before           other                                                   balance
                                                                                            tax      company      shareholders
                                                       income tax in comprehensive
                                                                                          expense    after tax      after tax
                                                         this term    earnings before



comprehensive earnings not to be
reclassified into profit and loss in
invested unit under equity law

2. Other comprehensive earnings to
be reclassified into profit and loss      -2,803,271     -4,144,991                                  -4,144,991                   -6,948,262
later

Including: share enjoyed in other
comprehensive earnings to be
reclassified into profit and loss in
invested unit under equity law

        Profit and loss from changes
in fair value of financial assets for
sale

        Profit and loss from
reclassification of held-to-maturity
investment into fair value of
financial assets for sale

        Effective part of profit and
loss of cash-flow hedge

        Difference in translation of
Foreign Currency Financial                -2,803,271     -4,144,991                                  -4,144,991                   -6,948,262
Statement

Total other comprehensive earnings        -2,803,271     -4,144,991                                  -4,144,991                   -6,948,262




7.32 Surplus reserve

                                                                                                                                   Unit: Yuan

                Item                    Beginning balance               Increase                    Decrease            Ending balance

Legal surplus                                   342,732,000                                                                     342,732,000

Free surplus



                                                                                                                                              92
                                                                        Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


Reserve fund

Enterprise expansion fund

Other

Total                                          342,732,000                                                           342,732,000


7.32 Retained profits

                                                                                                                         Unit: Yuan



                                           Item                                               This term           Last term




Retained profits at the end of last term before adjustment                                   5,251,920,374
                                                                                                                     4,616,944,663

Total retained profits at the beginning of the term before adjustment (increase listed
with+ , and decrease listed with -)                                                                                                -


Retained profits at the beginning of the term after adjustment                               5,251,920,374
                                                                                                                     4,616,944,663


Plus: Net profit for owner of the parent company                                               746,060,248
                                                                                                                       977,707,711


Minus: Drawn legal surplus
                                                                                                                                   -


Drawn free surplus
                                                                                                                                   -


Drawn common risk provision
                                                                                                                                   -


Common dividend payable
                                                                                                                       342,732,000


Common dividend transferred to share capital
                                                                                                                                   -


Retained profits at the end of term                                                          5,997,980,622
                                                                                                                     5,251,920,374




                                                                                                                                   93
                                                          Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


7.34 Operating income and cost

                                                                                                            Unit: Yuan

                                         Amount incurred in this term             Amount incurred in last term
                   Item
                                          Income               Cost               Income                Cost

Major operating                          2,822,557,981         929,890,756        2,295,163,767         748,344,147

Other operating                              3,235,269            2,631,987           6,826,481            5,958,239

Total                                    2,825,793,250         932,522,743        2,301,990,248         754,302,386




7.35 Business taxes and surcharges

                                                                                                            Unit: Yuan

                          Item                     Amount incurred in this term       Amount incurred in last term

Consumption tax                                                          84,797,329                        79,962,492

Business Tax                                                              1,518,690                              986,148

Urban maintenance and construction tax                                   28,968,941                        27,466,029

Education fee and surcharges                                             15,286,114                        14,516,416

Other                                                                    10,040,014                         9,505,728

Total                                                                   140,611,088                       132,436,813


7.36 Selling expenses

                                                                                                            Unit: Yuan

                  Item                   Amount incurred in this term             Amount incurred in last term

Advertising expenses                                           360,539,291                              262,899,061

Transportation & handling expenses                               65,691,087                               54,854,637

Trademark usage expenses                                         50,302,290                               43,413,264

Storage and lease expenses                                       36,943,556                               16,033,875

Employee compensation                                            92,074,479                               77,095,386

Travel expenses                                                  11,066,307                                9,635,193

Other                                                            36,808,506                               22,549,614

Total                                                          653,425,516                              486,481,030




                                                                                                                       94
                                                                        Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report




7.37 Administrative expenses

                                                                                                                          Unit: Yuan

                   Item                             Amount incurred in this term                Amount incurred in last term

Employee compensation                                                         42,052,514                                34,965,528

Rental expenses                                                                4,284,471                                  4,202,779

Depreciation expenses                                                         18,919,997                                13,603,951

Amortization expenses                                                          5,652,361                                  5,312,584

Office expenses                                                                7,217,464                                  6,430,712

Travel expenses                                                                2,280,457                                  2,259,499

Business entertainment expenses                                                3,221,229                                  1,837,458

Building tax, stamp duty & other taxes                                        10,197,817                                  5,769,819

Repair expenses                                                                5,202,754                                  4,364,445

Contracting expenses                                                           9,231,363                                  9,231,363

Other                                                                         11,509,913                                16,002,359

Total                                                                        119,770,340                               103,980,497


7.38 Financial expenses

                                                                                                                          Unit: Yuan

                   Item                             Amount incurred in this term                Amount incurred in last term

Interest expenditure                                                          11,180,635                                  3,161,233

Minus: Interest income                                                        10,172,582                                17,753,946

Plus: Commission charges                                                         655,685                                   224,138

Exchange loss                                                                  -5,544,641                                   114,190

Total                                                                          -3,880,903                              -14,254,385




7.39 Non-operation income

                                                                                                                          Unit: Yuan

                                                Amount incurred in      Amount incurred in      Amount counted into the current
                       Item
                                                    this term                last term            non-recurring profits/losses

Total gains on disposal of non-current assets                   2,985                                                            2,985

Including: Gains on disposal of fixed assets                    2,985                                                            2,985


                                                                                                                                      95
                                                                        Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report


         Gains on disposal of intangible
assets

Gains on debt recombination

Gains on exchange of non-monetary assets

Grains on donations

Government allowance                                      6,527,952                   8,772,080                               6,527,952

Other                                                     2,265,897                    672,716                                2,265,897

Total                                                     8,796,834                   9,444,796                               8,796,834


Government allowance counted into the current profits/losses:

                                                                                                                              Unit: Yuan

                                               Amount incurred in this Amount incurred in last           Belonging to non-current
               Item of allowance
                                                         term                         term                 profits/losses or not

Funds to support major projects                                 3,942,973                    4,052,500

Funds to support small and medium-sized
                                                                1,508,949                    2,078,674
Enterprises
Other                                                           1,076,030                    2,640,906
Total                      &ensp