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个股公告正文

张 裕B:2018年年度报告(英文版)

日期:2019-04-20附件下载

    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Yantai Changyu Pioneer Wine Co. Ltd.
    
    2018 Annual Report
    
    Final 2019-01
    
    April, 2019
    
    Contents
    
    I、Important Notice,Contents and Definition..............................................................................3
    
    II、Brief Introduction for the Company and Main Financial Indicators .................................. 5
    
    III、Summary of the Company’s Businesses .............................................................................. 10
    
    IV、Management Discussion and Analysis ................................................................................. 14
    
    V、Major issues ............................................................................................................................. 35
    
    VI、Changes in Shares and the Shareholders’ Situation ...........................................................51
    
    VII、Related Situation of Preferred Shares ................................................................................61
    
    VIII、Situation for Directors, Supervisors, Senior Executives and Staffs................................. 62
    
    IX、Corporate Governance .......................................................................................................... 77
    
    X、Related Situation of Corporation Bonds ............................................................................... 85
    
    XI、Financial Report.......................................................................................................................86
    
    XII、Reference Document .......................................................................................................... 198
    
    I. Important Notice, Content and Definition
    
    The board of directors,the board of Supervisors,directors, supervisors and senior executives
    
    of the Company guarantee the truthfulness, accuracy and completeness of the contents
    
    contained in the report with no false records, misleading statements or significant omissions,
    
    and undertake individual and joint legal liabilities.
    
    Mr. Zhou Hongjiang (Chairman of the Company), Mr. Jiang Jianxun (Chief Financial Officer
    
    & Financial Director) assure the truthfulness, accuracy and completeness of the financial
    
    report in the annual report.
    
    Except the following directors, all other directors have personally attended the meeting for
    
    deliberating the annual report.
    
         Directorname with        Director post with        Reason for         Name of
        non-presentin person     non-present in person     non-present in       mandatory
                                                           person
     Sun Liqiang               Director               Business trip        Zhou Hongjiang
     Antonio Appignani         Director               Business trip        Augusto Reina
    
    
    Forward-looking statements such as future plans and development strategies covered in this
    
    report do not constitute a substantial commitment of the Company to investors. Investors are
    
    advised to pay attention to investment risks.
    
    About significant risks that may be faced in production and operation process, please refer
    
    to“5. Risks likely to occur” part of “9. Expectation for the Company’s Future Development”
    
    in the Chapter Four “Management Discussion and Analysis” of the report. Investors are
    
    advised to read carefully and pay attention to investment risks.
    
    The Company’s preliminary scheme of profit distribution deliberated and passed by the board
    
    of directors this time is shown as following: Based on the Company’s total 685,464,000
    
    shares, we plan to pay CNY6 (including tax) in cash as dividends for every 10 shares to all
    
    shareholders and send 0 bonus share (including tax). Capital reserve will not be transferred to
    
    equity.
    
    Definition
    
                 DefinitionItem             Refers to                Definition Content
    Company/The Company                 Refers to Yantai Changyu Pioneer Wine Co. Ltd.
    Changyu Group/Controlling Shareholder   Refers to Yantai Changyu Group Co. Ltd.
    CSRC                                 Refers to China Securities Regulatory Commission
    SSE                                   Refers to Shenzhen Stock Exchange
    Deloitte Hua Yong                      Refers to Deloitte Hua Yong Certified Public Accountants
                                                    Co.,Ltd (special general partnership)
    CNY                                  Refers to Chinese Yuan
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    II. Brief Introduction for the Company and Main Financial Indicators
    
    1. Company’s informationStock Abbreviation Changyu A, Changyu B Stock Code 000869, 200869
    
    Stock Abbreviation after Alteration -
    Place of Stock Listing             Shenzhen Stock Exchange
    Legal Name in Chinese           烟台张裕葡萄酿酒股份有限公司
    Abbreviation ofChinese Name     张裕
    Legal Name in English            YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
    Abbreviation of English Name     CHANGYU
    Legal Representative              Mr. Zhou Hongjiang
    Registered Address               56 Dama Road, Yantai, Shandong, China
    Postal Code                      264000
    Office Address                   56 Dama Road, Yantai, Shandong, China
    Postal Code                      264000
    Website                         http://www.changyu.com.cn
    E-mail                           webmaster@changyu.com.cn
    
    
    2. Contact person and information
    
                  Secretary to the Board of Directors      Authorized Representative of Securities Affairs
    Name    Mr. Qu Weimin                           Mr. Li Tingguo
    Address  56 Dama Road, Yantai, Shandong, China     56 Dama Road, Yantai, Shandong, China
    Tel      0086-535-6633656                         0086-535-6633656
    Fax      0086-535-6633639                         0086-535-6633639
    E-mail   quwm@changyu.com.cn                   stock@changyu.com.cn
    
    
    3. Information disclosure and filing locationMseleedcitaednabmyethfeorCionmfoprmanaytion disclosure CKohinngaCSoemcumrietriecsiaNl eDwasiplyaper , Securities Times and Hong
    
    aWnnebuaSlirteepaosrstignedby CSRC to carry the    http://www.cninfo.com.cn
    Freiplionrgtlocation of the Company’s annual    BYoaanrtdai,oSfhDainredcotnogrs’Office of the Company, 56 Dama Road,
    
    
    4. Registration changes Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual ReportOrganization Code 913700002671000358
    
                                   eTshtaeblbisuhseindesosnsSceoppteemdbeetrer1m8itnh,ed199b7yistheproCdoumctpioann,yprwohceenssinitgwanads
                                   sbaelveesraogfew,ifnreu,itdijsatmill,epdalcikqiunogr,mheaateltrhiayllaiqnudorw,ifnreumitalkiqinugor,mnaocnh-ianlec.ohOonl
                                   ACopmrilpa1n7yth’,s2b0u0s8in,easpspsrcoovpeedisbychtahnege2d00t7opshroadreuhcotilodne,rsp’romceeestsiinngg,atnhde
                                   nsaolne-salcoofhowlinbee,vedraisgteil,ledfruiltiqujaomr,, mpeadckiciantgedmlaiqteuroiarl,,fwruiintemliaqkuionrg,
                                   ampapcrhoivneedsbayndtheli2ce0n0s9edshaimrephoorltdearsn’dmeexeptionrgt.,tOhenCMomaypan1y2thc,ha2n0g1e0d,
    Changes for the main businesses  ditisstiblluesdinleiqssuosrc,ompeeditcoatepdroldiquuctoiro,nf,rupitrolciqeussoirn,gnoann-dalcsoahleoslboefvewraingee,,
    of the Company since it was listed fruit jam, packing material and its products, winemaking machine,licensedimport and export and external investment according to
                                   nanatniuoanlal1sptoIlnitceyr.imOnshaSreephtoelmdebresr’2m3erde,tin2g0,16th,eapCpormovpeadnybychtahnege2d01it6s
                                   ofiplleirnagt)inpgrosdcuocpteiotno,bwleinnedianngdlifqruuoitrwanidneot(hbeurlkblwenindein,gprlioqcueosrssin(ggraanpde
                                   plirqoudeuucrt)iopnro,dpurocctieosns,inogthaenrdlisqauloesrso(fopthaecrkidnigstimlliantgerilaiqluaonrds)wpirnoedmucatkiionng,
                                   mdeavcehloinpem,engtrap(eexcplluadnitnagtiontouarnisdm)p,ropcaucrkemageent,detsoiugrni,smactrievsiotyurcoesf
                                   bexutieldrninaglirnevnetsatlm,leinctenacsecdordiminpgotrotannadtioenxaploprot,liwcya.rehousebusiness and
    cCohnatnroglelsinfgorshaallrephreovldioeurssNo.
    
    
    5. Other relevant information
    
    The accounting firm appointed by the CompanyName Deloitte Hua Yong Certified Public Accountants Co., Ltd (specialgeneral partnership)
    
    Address                        No. 23 Zhenzhi Road, Chaoyang District, Beijing
    Name of signatory accountants    Xie Yanfeng, Li Yangang
    
    
    sTuhpeersvpisoinosnodr uirninstgittuhteiornepaoprtppoeinritoedd by the Company to perform the duty of continuous
    
    □ThAe vfaiinlaabnlceial a?dvNiosetravaapilpaobilneted by the Company to perform the duty of continuous
    
    supervision during the report period
    
    □Available ?Not available
    
    6. Key accounting data and financial indicators
    
    Wprehveitohuesr ftihscealCyoemarpsa.ny needs to retrospectively adjust or restate the accounting data of
    
    □Yes ?No
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                   2018              2017        More or less thanLastyear (%)         2016
    Operating revenue (CNY)       5,142,244,740     4,932,545,229           4.25%     4,717,596,472
    Nsheatrephrooflidteartstroibfuthteedlitsoted   1,042,632,929     1,031,695,056           1.06%       982,460,488
    company (CNY)
    sNheatrephrooflidteartstroibfuthteedlitsoted
    icroremgpualanrygaafitnersdaneddulcotsisnegs 965,426,238       986,095,872          -2.10%       941,730,478
    (CNY)
    oNpeetrcaatisnhgfalocwtivsiftrieosm(CNY)975,978,746       973,243,027           0.28%       889,911,970
    B(CaNsiYc)earningsper share                 1.52              1.51           0.66%              1.43
    D(CilNuYte)dearnings per share               1.52              1.51           0.66%              1.43
    eWareniginhgterdataevoefrangeetfaosrsets           11.23%           12.14%          -0.91%           12.55%
    (CNY)
                             December 31st,2018 December31st, 2017  Moreor lessthan  December31st,2016
                                                                    Lastyear(%)
    Total assets (CNY)            13,117,729,052    12,536,755,208           4.63%    11,528,077,971
    sNheatreAhsosledtesrasttorfibtuhteeldisttoed9,606,099,365     8,906,342,299           7.86%     8,209,010,989
    company (CNY)
    
    
    a7.ccDoiuffnetrienngcsetsainndaacrcdosunting data under PRC accounting standards and international
    
    to(1b)oDthififnerteernncaetsioonfanleatcpcoruofnittsinagnsdtannedtaarsdssetasnidnPtRheCfiancacnocuinatlinregpsotartnddaisrcdlossed according
    
    T□hAerveaialarebleno d?iffNeoretnacveasilaobflenet profits and net assets in the financial report disclosed
    
    tahcecorerdpionrgt ptoeriboodt.h international accounting standards and PRC accounting standards during
    
    to(2b)oDthifffoerreenigcnesacocfonuenttipnrgofsittasnadnadrdnseatnadssPetRsCinacthcoeufnintianngcisatlanredpaorrdtsdisclosed according
    
    T□hAerveaialarebleno d?iffNeoretnacveasilaobflenet profits and net assets in the financial report disclosed
    
    raecpcoorrtdpinegriotod. both foreign accounting standards and PRC accounting standards during the
    
    8. Key financial indicators by quarter Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Unit:CNY
    
                              1stQuarter       2nd Quarter       3rd Quarter      4th Quarter
    Operating revenue         1,804,057,976    1,024,172,088    1,032,328,986   1,281,685,690
    sNheatrephrooflidteartstroibfuthteedto       479,444,238      156,393,167     133,916,250     272,879,274
    listed company
    sNheatrephrooflidteartstroibfuthteedto
    dliesdteudctcionmgpirarnegyualfatrer  466,181,564      140,497,155     110,520,695     248,226,824
    gains and losses
    oNpeetrcaatisnhgfalocwtivsiftireosm507,263,964       45,489,508     224,087,322     199,137,952
    
    
    Wthehiertshuemr thaenrde tahree rseilganteifdicfainntandcififaelreinndciecsatboertswienenthtehqeuaabrotevrelymreenptoiortnseadnfdinsaenmcii-aalninnudaiclarteoprsorotsr
    
    disclosed by the Company.
    
    □Yes ?No
    
    9. Item and amount of non-recurring profit and loss
    
    ?Available □Not available Unit:CNY
    
                    Item                       2018           2017           2016       Explanation
    nPoronf-ictusrarnedntloasssseetss,oinndcliuspdoinsgaltohfe
    ppraortvisionfor asset impairment write-off        11,368,355       -222,586         14,719
    cGuorvreenrntmpreonftitgsraanndtsloinscsleusd(eedxcineptthefor
    tahreoscelorseecluyrrrienlgatgedovteornthmeeennttigtrya'sntsthat         87,281,434     47,638,384      49,130,643
    oanpderhaativoen,pirnoplienrebwasiitshoreflcaatelcdurleagtiuolna)tions
    eOxtpheenrdoiptuerreastinexgcreepvtetnhueeasfaonredmentioned3,817,401     13,999,251       4,656,972
    items
    Less:  Income tax effect                     25,157,188     15,523,424      13,072,324
           Meffiencotri(tayftsehratraexheosl)ders'equity             103,311        292,441
    Total                                      77,206,691     45,599,184      40,730,010      --
    
    
    TChoemrpeaansyonhsasshadlelfbineemd abdye cvliertaureanodf dtheefinEitxeplylaansattoorytheAnnnoonu-rnecceumrreinngt opnrofPituabnlidc lCososmthpaatntyh’es
    
    Information Disclosure No.1 - Non-recurrinYgantPairCohfiatngyaunPdionLeoersWs inaenCdo. aLstd. t2o018reAgnanurdaliRnegportthe
    
    nAonnn-oruecnucrerminegntpornofPitubalnidc Cloosmspaasnyr’escuInrrfeonrmt aptrioofnitDainsdclolosussreaNsos.p1e–cNifoiend-riencutrhreinEgxPprloafniat taonrdy
    
    Loss.
    
    □Available ?Not available
    
    Tprhoefriet aanred nloosscaisnesatchcaotrdnaonnc-erecwuirtrhintgheprEoxfiptlaannadtoloryssAinsndoeufninceedmeanntdosnpePciufbielidc aCsormecpuarnreyn’st
    
    Information Disclosure No.1 - Non-recurring Profit and Loss during the report period.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    III. Summary of the Company’s Businesses
    
    1. Main businesses during the report period
    
    Whether the Company needs to follow disclosure requirements of special industry
    
    No
    
    During the report period, the Company’s main businesses are production and operation of wine and brandy, thus providing domestic and foreign
    
    consumers with healthy and fashionable alcoholic drinks. Compared with earlier stage, there are no significant changes happened to the
    
    Company’s main businesses. The wine industry that the Company involved in is still in growth stage and the whole domestic wine market is on
    
    the rising trend. The Company is at the forefront in the domestic wine market.
    
    2. Significant changes of main assets
    
    (1) Significant changes of main assets
    
              Mainassets                                           Explanation of significant changes
    Equity asset                   There are no significant changes during the report period
    Fixed asset                    The fixed assets increased by7.89% compared with the initial stage, owing to part of constructions in process
                                  have been transferred to fixed asset during the report period.
    Intangible asset                There are no significant changes of intangible asset during the report period.
    Construction in process         The constructions in process decreased by 26% compared with the initial stage, owing to part of constructions
                                  in process have been transferred to fixed asset during the report period.
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    (2) Main overseas assets situation
    
    ?Available □Not available
    
    Unit:CNY
    
                                                                                Control                      Proportion of       Whether there are
     Details of assets    Formation    Assets scale  Location     Operation      measures for      Earning     overseas assets in   significant impairment
                         reasons                                 mode       safeguarding of    condition    the Company’s net          risks
                                                                             asset security                       assets
                                                                             The Company
                                                                             participates in
                                                                                making
       Hacienda Y                                                             important
         Vinedos      Acquisition of  563,501,798    Spain     Independent       decisions      3,811,465               5.87%           No
       MarquesDel        equity                                operation     through board of
        Atrio. SL                                                             directors and
                                                                             appoints CFO
                                                                              on financial
                                                                             management.
                                                                             The Company
                                                                             participates in
                                                                                making
      IndomitaWine                                                            important
     Company Chile,   Establishment   515,753,832    Chile     Independent       decisions      15,934,347              5.37%           No
          SpA        of joint venture                            operation     through board of
                                                                              directorsand
                                                                             appoints CFO
                                                                              on financial
                                                                             management.
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                                                             The Company
                                                                             participates in
       Kilikanoon     Acquisition of                           Independent       making
      Estate Pty Ltd       equity      151,394,573  Australia     operation        important         217,869              1.58%
                                                                               decisions
                                                                            through board of
                                                                               directors.
    
    
    3. Analysis of core competitiveness
    
    Whether the Company needs to follow disclosure requirements of special industry
    
    No.
    
    Compared with the participants in the arena of the Chinese wine sector, we believe that the Company is with the following advantages:
    
    Firstly, the Company has been enjoying a well-known wine brand since 120-odd years. “Changyu”, “Noble Dragon” and “AFIP” are all China
    
    famous brand 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, with strong marketing ability and market exploitation ability.
    
    Thirdly, the Company has strong research strength and a product R&D system. Relying on the country’s only “State-level Wine R&D Center”,
    
    the Company has mastered advanced winemaking technology and production processes as well as been powerful enough in product innovation
    
    and perfect quality control system.
    
    Fourthly, the Company is in possession of a lot of grape-growing bases that are compatible with its development requirements. The Company
    
    has developed a great deal of vineyards in the most suitable areas for wine grape growing such as Shandong, Ningxia, Xinjiang, Liaoning, Hebei
    
    and Shanxi, whose scale and structure have generally met the Company’s needs for development.
    
    Fifthly, products in high, medium and low-grade as well as varieties and categories are all complete. Over 100 varieties of series products such
    
    as wine, brandy and sparkling wine covers various grades, including high, medium and low-grade, which can meet different consumer groups’
    
    demands. The Company has taken the dominant status in the domestic wine industry through rapid development in the past 10-odd year
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    and has comparative advantages in the future competition.
    
    Sixthly, the Company has a relatively perfect motivation system. Most of Company’s
    
    employees indirectly hold the Company’s equity through controlling shareholders. There are
    
    high consistency between employee benefits and shareholders benefits, in favor of motivating
    
    employees to create value for shareholders.
    
    Seventhly, the Company has set up flexible and efficient decision-making mechanism. The
    
    Company’s core management team always maintains a working style of unity and pragmatic
    
    and flexible and efficient decision-making mechanism, which makes the Company can deal
    
    with market changes more calmly.
    
    Eighthly, the global production capacity layout has been basically completed. The Company
    
    has completed production capacity layout in China, France, Chile, Spain, Australia and other
    
    major wine producing countries in the world, enabling making better use of global
    
    high-quality raw material resources, capital, talents and advanced production processes and
    
    technologies to provide consumers with diversified quality products and better serve
    
    consumers.
    
    Based on the above reasons, the Company has formed relatively strong core competence and
    
    will maintain a relatively dominant position in the future predictable market competition.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    IV. Management Discussion and Analysis
    
    1. Summarization
    
    In 2018, influenced by many factors, such as the slowdown of domestic economic growth and
    
    the increase in uncertainty resulting from Sino-US trade friction, the overall sales amount of
    
    domestic wine industry was relatively stable, but the sales volumes of both imported wine
    
    and domestic wine decreased. As imported wine continued occupying the market of domestic
    
    wine, the competition in domestic wine market was very strong. Furthermore, the increase in
    
    the price of raw materials and packing materials as well as increase in the depreciation of
    
    fixed assets, freight and labor cost further increased the pressure of the company’s increase in
    
    profit. Facing quite a lot of external disadvantages, the Company insisted in taking the market
    
    as the center, insisted the development strategy of “Focus on middle-and-high level, Focus on
    
    high quality, Focus on big product”, intensified internal reform, optimized product structure
    
    and market layout, quickened the pace of new product development and market promotion,
    
    and strived to promote product sales, achieving good results and realizing operating revenue
    
    of CNY5142.24million with an increase of 4.25% compared with last year and net profit of
    
    CNY1042.63 million belonging to the parent company’s shareholders with an increase of
    
    1.06% compared with last year.
    
    2. Analysis of main business
    
    (1) summarization
    
                        Increaseor decrease of
    Description         the end of the period    Cause of significant changes
                        overthe end of last year
                                             Mainly  because of increase in average
    Operating revenue   4.25%                price   of   products   resulting   from
                                             improvement of product mix
    Operating cost       13.76%               Mainly because of increase in the price of
                                             raw materials and packing materials
    Sales expense       0.16%                Mainly because of year-on-year increase
                                             in wage & welfare
                                             Mainly because of year-on-year increase
    Management expense2.12%                in wage & welfare and depreciation of
                                             afforestation fees
                                             Mainly  because of increase in expenses
    R&D expense       10.72%               for technology research and development
                                             in 2018
    Financial expense    93.36%               Mainly  because  of  increase  in  loan
                                             interest expenditure
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Net amount of cash                      Mainly because of increase in received
    flow   generated   in0.28%                cash from product sales and rendering of
    operating activities                         serdeputy
    Net amount of cash                      Mainly because of increase in received
    flow   generated   in38.08%               cash from t recouping the investment
    investment activities
    Net amount of cash
    flow   generated   in-77.83%               Mainly because of increase in payment of
    capital-raising                             cash for debt repayment
    activities
    
    
    Review and summary of the process of the Company’s early-disclosed development strategy
    
    and business plan during the report period
    
    During the report period, the Company realized the operating revenue of
    
    CNY5142.24million with an increase of 4.25% compared with last year, slightly lower than
    
    the target fixed at the beginning of the year of realizing operating revenue no less than
    
    CNY5.2billion. The net profit of CNY1042.63 million belonging to the parent company’s
    
    shareholders was realized with an increase of 1.06% compared with last year. The main work
    
    during the report period were shown as followed:
    
    Firstly, the Company took the market as the mirror, further promoted the strategy of three
    
    Focus, strengthened internal adjustment and reform intensity, accelerated the launch of new
    
    products and market expansion of core products, and strived to develop E-business,
    
    achieving good results. During the report period, the Company reorganized sales team,
    
    preliminarily realized the reduce in staff number and the improve of efficiency, conducted
    
    the work of “sales team jointly built by manufacturers and distributors”, actively explored the
    
    expense input management and control mode of “check and balance between manufacturers
    
    and distributors ”, and received preliminary effects. Ten provincial brandy companies were
    
    newly established. Specialized provincial wine companies and comprehensive provincial
    
    companies were subdivided. Three business segments, including provinces and cities such as
    
    Zhejiang, Fujian, Guangdong, Jiangsu, Shandong, Beijing and Shanghai etc and E-business
    
    and so on, realized authorized operation. The Company adjusted the function of VIP
    
    customer business, peeled off distribution business in direct supply system, further defined
    
    the relationship between the Changyu parent brand and its subsidiary brands, formed the core
    
    brand system of various liquors and made development planning of each brand. Series of
    
    new products, such as the ninth generation Noble Dragon, new Zenithwirl, 15-year Koya,
    
    10-year Koya, 6-year Koya, Australian Kilikanoon products and Chilean Indomita products
    
    and so on, received wide praises and the demand of partial products exceeds supply owing to
    
    their hot sale. The Company insisted on the strategy of three Focus, weeded out 134 kinds of
    
    wine and centralized most marketing resources to be used for market promotion of
    
    middle-to-high-end wine, five-star and above brandy and imported wine with own brands,
    
    making sales revenue of wine and brandy achieve different levels of increase.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Secondly, the Company took the quality as the basis, regarded product quality as an
    
    important magic weapon to defeat enemies. It conducted all-around self-examination,
    
    self-correction and optimization on the selection of grape base, grape planting mode,
    
    production process and technology, quality testing equipment and product quality control
    
    system etc, formulated three-year planning, implementation scheme and specific measures
    
    for product development and quality improvement in future three years, strengthened
    
    technical exchanges at home and abroad and team construction of winemakers, focused on
    
    new product development and technical difficulties, improved the quality traceability system
    
    and strengthened quality control in the whole production process, making the company's
    
    technical level and product quality reach a new level. The Company carried out 45
    
    technology researches and completed one sub-project of national 863 project. Drafted
    
    standards of Wine-making Grape and Oak Barrel passed the group standards assessment by
    
    China Alcoholic Drinks Association, filling in gaps of domestic wine industry. Key
    
    Technology Research and Application in Industrialization of Domestic Oak Products was
    
    declared for 2018 scientific and technological progress award of China Alcoholic Drinks
    
    Association. Key Technology Research for Premium and Characteristic Wine-making Grape
    
    Cabernet Gernischt and Wine Production won scientific and technological progress award of
    
    China National Light Industry Council. In 2018 IWSC, Kilikanoon Wines Pty Ltd in
    
    Australia was awarded “Australian Best Wine Producer of the Year” and was the only one
    
    chateau awarded by IWSC among more than 4000 chateaux in Australia, of which 2014
    
    Kilikanoon Estate Special Reserve Shiraz 8K won outstanding gold medal with scores of
    
    93 points and above) as well as the trophy of “World’s Best Shiraz of the Year” while 2016
    
    Kilikanoon Estate Wine Blend 6K won gold medal with scores of 90 to 92.9 points.
    
    Kilikanoon Wines Pty Ltd was honored with the title of “Australian Best Wine Producer of
    
    the Year” in 2018 Mundus Vini. 2014 Kilikanoon Estate Special Reserve Shiraz 8K won
    
    gold medal in DAWA with the score of 95. 2015 Moser Family Cabernet Sauvignon Red
    
    Wine, 2016 Moser Legend Cabernet Sauvignon White Wine, 2015 Golden-label Icewine of
    
    Golden Icewine Valley and 2015 Blue-label Icewine of Golden Icewine Valley won gold
    
    medal in the 22nd session of Berliner Wein Trophy. Changyu Five-star Fine Brandy won
    
    gold medal in 2018 Spirits Selection by Concours Mondial de Bruxelles. Changyu Koya
    
    15-years XO bradny ageing in oak barrel won the design award of luxury category in 2018
    
    Pentawards Award Ceremony. “Water-drop Decanter” of Changyu Koya 10-years XO
    
    Brandy won the design award of packaging category in 2018 iF Design Award Ceremony
    
    held at BMWWelt in Munich, Germany.
    
    Thirdly, the Company realized online identification and order-driven mode of major products.
    
    During the reporting period, the Company issued Assessment Measures for Performance
    
    Rate of Production Order, gave full play to advantages of advanced production facilities,
    
    high automation and informationization and fast production speed, optimized and adjusted
    
    business processes, and strengthened coordination of supply, production and sales, making
    
    27 kinds of Noble Dragon products with high sales volume and all domestic chateau wines
    
    achieve order-driven mode. Most domestic wine products achieved online tagging, which
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    improved production efficiency and delivery speed, dramatically reduced product and capital
    
    backlogs and better satisfied the market needs.
    
    Fourthly, the Company enhanced financial management and established and improved the
    
    assessment system taking profit as principal line. During the report period, the Company
    
    strengthened the management in financial budget, fixed funds and overseas enterprises’
    
    financial affairs, enhanced the audit in price execution, gross profit margin, capital
    
    occupation, key expenses, and investment projects, increased the investigation of economic
    
    responsibility, scientifically allocated internal capital, vigorously strived for policy-based
    
    capital loans and continuously reduce the cost of capital. It strengthened the simulated profit
    
    assessment of authorized business units and strived to establish a profit assessment system
    
    covering all business segments and respective responsibilities in order to provide a basic
    
    basis for more reasonable and efficient performance assessment and to improve profitability.
    
    Fifthly, the Company successfully completed the procurement of raw materials including
    
    grapes and further strengthened the management in grape base. The Company
    
    comprehensively accomplished the procurement plan of raw materials exemplified as grapes,
    
    improved the fermentation rate of premium wines, further deepened sort management and
    
    sort acquisition of grape bases and continued promoting the mechanization process in
    
    vineyards, lowering the operating costs of self-supported grape bases and making scientific
    
    and normative management in grape base reach a higher level. It raised grape purchase
    
    standard, improved raw material quality, actively conducted the introduction, selective
    
    breeding and improvement of new grape varieties and characteristic varieties and cultivated a
    
    lot of new varieties, enriching the variety resource for future product development. It also
    
    organized orchardist to take professional training on grape planting technology, which
    
    improved their grape planting and management level.
    
    Sixthly, the Company continued promoting internationalization strategy and steadily
    
    implemented overseas acquisition. It acquired 80% equity of Kilikanoon Estate Pty Ltd in
    
    Australia.
    
    (2) Revenue and cost
    
    ① Composition of operating revenue
    
    Unit: CNY
    
                             2018                        2017
                                   Proportion                   Proportion  Year-on-year
                     Amount          in          Amount          in       increase or
                                   operating                     operating   decrease (%)
                                    revenue                      revenue
        Total     5,142,244,740.00      100%     4,932,545,229      100%        4.25%
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
      operating
       revenue
     Sector-classified
     Sector   of
     liquor  and     5,142,244,740      100%     4,932,545,229      100%        4.25%
     alcoholic
     beverage
     Product-classified
     Wine           4,000,233,434     77.79%     3,829,326,556     77.63%        0.16%
     Brandy          999,207,299     19.43%      989,889,728     20.07%       -0.64%
     Others           142,804,007      2.78%      113,328,945      2.30%        0.48%
     Area-classified
     Domestic       4,486,387,956     87.25%     4,497,288,066     91.18%       -3.93%
     Abroad          655,856,784     12.75%      435,257,163      8.82%        3.93%
    
    
    ② The cases of industry, product or area accounting for over 10% in the Company’s
    
    operating revenue or operating profit
    
    ?Available □Not available
    
    Whether the Company needs to follow disclosure requirements of special industry
    
    No
    
    Unit: CNY
    
                                                               Year-on-   Year-on-  Year-on
                                                                 year       year      -year
                                                                increase   increase   increase
                                                       Gross      or         or        or
                 Operating revenue    Operating cost    profit   decrease   decrease  decrease
                                                        rate     (%) of     (%) of    (%) of
                                                               operating  operating    gross
                                                                revenue     cost      profit
                                                                                      rate
     Sector-classified
     Sector of         5,142,244,740     1,901,611,507  63.02%     4.25%    13.76%   -3.09%
     liquor
     and
     alcoholic
     beverage
     Product-classified
     Wine             4,000,233,434     1,460,855,413  63.48%     4.46%    15.36%   -3.45%
     Brandy             999,207,299      403,699,973  59.60%     0.94%    14.58%   -4.81%
     Others             142,804,007       37,056,121  74.05%    26.01%   -29.91%   20.70%
     Total             5,142,244,740     1,901,611,507  63.02%     4.25%    13.76%   -3.09%
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     Area-classified
      Domestic        4,486,387,956     1,477,589,238  67.07%    -0.24%     7.17%   -2.27%
        Abroad         655,856,784      424,022,269  35.35%    50.68%    44.76%    2.65%
    
    
    Under the condition that the statistical caliber of the Company’s main business data is
    
    adjusted during the report period, the Company’s main business data adjusted on the basis of
    
    caliber at the end of report period in recent one year.
    
    □Available ?Not available
    
    ③ Whether the Company’s sales revenue for material object is more than labor
    
    serdeputy revenue
    
    ?Yes □No
    
                                                                           Year-on-year
        Sector        Project         Unit          2018         2017       increase or
                                                                           decrease(%)
     Wine         Sales volume           Ton       112,600       104,016         8.25%
     Brandy        Sales volume           Ton        39,315        39,130         0.47%
    
    
    Explanation on the causes of over 30% year-on-year changes of the related comparison data
    
    □Available ? Not available
    
    ④ The fulfillment of major sales contract signed by the Company up to the report
    
    period
    
    □Available ? Not available
    
    ⑤ Composition of operating costs
    
    Classification of sector and product
    
    Unit: CNY
    
                                           2018                         2017              Year-on-year
       Sector        Project        Amount     Proportion inthe     Amount     Proportioninthe     increase or
                                            operatingcost(%)              operating cost(%)   decrease (%)
                 Blendingliquor    981,838,789           52.42%  929,487,468           56.48%         -4.06%
                 Packing         633,281,194           33.81%  525,292,149           31.92%         1.89%
     Liquorand   material
     alcoholic     Wages           63,385,522            3.38%   57,733,717            3.51%         -0.12%
     beverage     Manufacturing
                 expenses        194,485,534           10.38%  133,177,282            8.09%         2.29%
    
    
    Unit: CNY
    
       Sector        Project                 2018                         2017              Year-on-year
                                 Amount     Proportion inthe     Amount     Proportioninthe     increase or
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                            operatingcost(%)              operating cost(%)   decrease (%)
                 Blendingliquor    759,623,724             52%  711,224,945           56.16%         -4.16%
                 Packing         484,791,303           33.19%  395,026,889           31.19%         1.99%
                 material
     Wine       Wages           54,718,770            3.75%   47,843,744            3.78%         -0.03%
                 Manufacturing    161,721,616           11.07%  112,295,874            8.87%         2.20%
                 expenses
                 Blendingliquor    217,997,239             54%  204,764,927           58.12%         -4.12%
                 Packing         144,272,064           35.74%  117,982,142           33.49%         2.25%
                 material
     Brandy      Wages            8,666,752            2.15%    9,678,688            2.75%         -0.60%
                 Manufacturing     32,763,918            8.12%   19,903,211            5.65%         2.47%
                 cost
    
    
    ⑥ Whether there are changes of consolidation scope during the report period
    
    ?Yes □No
    
    According to the Share Sale & Purchase Agreement signed by the Company and the
    
    shareholders of Kilikanoon Estate Pty Ltd on December 5th, 2017, the acquisition of 80%
    
    equity of Kilikanoon Estate Pty Ltd is based on AUD20,860,825 (equivalent to
    
    CNY107,194,420). The Company completed the equity transfer on January 18th, 2018, and
    
    obtained control over the financial and operating policies of Kilikanoon Estate Pty Ltd. This
    
    company is included in the consolidate scope during the report period.
    
    ⑦ Major changes or adjustments of the Company’s businesses, products or serdeputys
    
    during the report period
    
    □Available ?Not available
    
    ⑧ Information of major sales customers and major suppliers
    
    The Company’s major sales customers
    
    The total sales amount of the top five customers(CNY)                    183,898,220
    The proportion that total sales amount of the top five customers accounting         3.58%
    for the annual total sales amount(%)
    The proportion that sales amount of the related party in the total sales
    amount of the top five customers accounting for the annual total sales            0%
    amount(%)
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Information of the Company’s 5 biggest sales customers
    
                                                      Salesamount    Proportion in total
      No.               Customer name                 (CNY)      sales for the year
                                                                          (%)
    1      Changyuexin Trading Company Limited in        55,734,499             1.08%
            Shenzhencity
    2      Haikou Heshunxin Trading Company             35,693,617             0.69%
            Limited
    3      Xinbaicheng Food Firm in Hanjiang district        32,959,410             0.64%
            ofPutian city
    4      Fuzhou Shengshihanggang Trading               30,794,332             0.60%
            CompanyLimited
    5      Fengxiang Grocery Store in Hui’an town          28,716,363             0.56%
    Total                      --                         183,898,221             3.58%
    
    
    Other situation explanations of major customers
    
    □Available ?Not available
    
    Information on the Company’s main suppliers
    
     The total purchase amount of the top 5 suppliers                           583,902,258
     The proportion of the total purchase amount of the top 5 suppliers in the           37.75%
     annual purchase amount
     The proportion of the related party purchase amount in the top 5 supplier           11.2%
     purchase amount in annual purchase amount
    
    
    Information on the Company’s top 5 biggest suppliers
    
       No.               Supplier name              Purchase amount   Pprouprcohrtaisoenfionrttohteal
                                                        (CNY)          year(%)
    1        Yantai Shenma Packaging Co., Ltd.             173,238,289           11.20%
    2        Yantai Changyu Glass Co.,Ltd.                 123,686,048               8%
    3        Liquan Sales Department of Shandong           116,840,313            7.55%
             YantaiWinery Co.,Ltd.
    4        Xinjiang Yuyuan Liquor Co.,Ltd.               108,763,517            7.03%
             TheXinjiang Production and Construction
    5        Corps the 152thGroup of the 8th                  61,374,092            3.97%
             AgriculturalDivision
    Total                      --                         583,902,259           37.75%
    
    
    Other situation explanations of main suppliers
    
    □Available ?Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    (3) Expense
    
    Unit: CNY
    
                                                         Year-on-year     Explanation of significant
                            2018            2017         increase or              changes
                                                         decrease(%)
                                                                        Mainly because of the
     Sales expense        1,274,599,146   1,272,522,443           0.16%  increase of salary and welfare
                                                                        compared with last year
                                                                        Mainly because of the
     Management                                                        increase of salary and welfare
     expense               343,580,651     336,461,133           2.12%  as well as amortization of
                                                                        amortization fees compared
                                                                        with last year
                                                                        Mainly because of the
     Financial expense       35,945,302      18,590,259          93.36%  increase in loan interest
                                                                        expenditure
     Research and                                                       Mainly because of the
     Development            4,784,118       4,320,825          10.72%  increase of technology
     expense                                                            development expenditure
    
    
    (4) Research and development investment
    
    □Available ?Not available
    
    (5) Cash flow
    
    Unit: CNY
    
                Item                     2018                2017         Year-on-year increase
                                                                             or decrease (%)
    Subtotal of cash inflow in               5,080,363,769       4,965,586,341                2.31%
    operating activities
    Subtotal of cash outflow in              4,104,385,023       3,992,343,314                2.81%
    operating activities
    Net amount of cash flow
    generated in operating                   975,978,746        973,243,027                0.28%
    activities
    Subtotal of cash inflow in                423,413,326        216,678,355               95.41%
    investment activities
    Subtotal of cash outflow in               931,261,875       1,036,886,116              -10.19%
    investment activities
    Net amount of cash flow                 -507,848,549        -820,207,761               38.08%
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    generated in investment
    activities
    Subtotal of cash inflow in               1,114,333,670       1,064,892,130                4.64%
    capital-raising activities
    Subtotal of cash outflow in              1,546,641,222       1,307,993,557               18.25%
    capital-raising activities
    Net amount of cash flow
    generated in capital-raising              -432,307,552        -243,101,427              -77.83%
    activities
    Net increase of cash and cash              25,971,060         -76,053,030             134.15%
    equivalents
    
    
    Explanation of main influence factors contributing to great changes in related data on
    
    year-on-year basis
    
    ?Available □Not available
    
    Compared with the same period of last year, during the report period, the subtotal of cash
    
    inflow in investment activities increased by 95.41% and the net amount of cash flow
    
    generated in investment activities increased by 38.08%, which is mainly due to the increase in
    
    cash received from the recovery of investment; subtotal of cash outflow in capital-raising
    
    activities increased by 18.25% and net amount of cash flow generated in capital-raising
    
    activities decreased by 77.83% year-on-year, which is mainly due to the increase in cash paid
    
    for debt repayment; net increase of cash and cash equivalents increased by 134.15%, which is
    
    mainly due to the increase in cash received from the recovery of investment.
    
    Explanation on the causes of major differences between the net cash flow generated by the
    
    Company’s operating activities and net profit of this year during the report period.
    
    □Available ?Not available
    
    3. Analysis to non-main business
    
    □Available ?Not available
    
    4. Assets and liabilities
    
    (1) Significant changes of assets composition
    
    Unit: CNY
    
                         Atthe end of 2018           At the end of 2017        Proportion  Explanation on
                                  Proportion in                Proportion in   increase or    significant
                       Amount      the total      Amount    the total assets   decrease      changes
                                    assets(%)                      (%)          (%)
    Monetary funds   1,475,700,477      11.25%  1,402,522,509       11.19%       0.06%No significant
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                                                                        changes
    Receivables        242,153,083       1.85%   263,796,355         2.10%       -0.25%No significant
                                                                                        changes
    Inventory        2,724,591,457      20.77%  2,473,614,046       19.73%       1.04%No significant
                                                                                        changes
    Investment real      31,572,489       0.24%    18,467,989         0.15%       0.09%No significant
    estate                                                                               changes
    Long-term                                                                           No significant
    equity                                  0%                         0%          0%changes
    investments
    Fixed assets      5,749,731,667      43.83%  5,329,083,969       42.51%       1.32%No significant
                                                                                        changes
    Construction in     759,296,591       5.79%  1,026,141,569         8.19%       -2.40%No significant
    progress                                                                             changes
    Short-term          688,002,410       5.24%   714,434,286         5.70%       -0.46%No significant
    borrowings                                                                           changes
    Long-term          156,480,662       1.19%   156,125,854         1.25%       -0.06%No significant
    borrowings                                                                           changes
    
    
    (2) Assets and liabilities measured at fair value
    
    □Available ?Not available
    
    (3) Limitations of assets rights up to the end of the report period
    
    At the end of report period, the Company has no assets sealed up, detained or frozen. For
    
    information about assets mortgage and pledge, please refer to Announcement on External
    
    Guarantee (announcement number: 2016-Temporary 021), Announcement on External
    
    Guarantee (announcement number: 2017-Temporary 015) and Announcement on External
    
    Guarantee (announcement number: 2018-Temporary 020) disclosed on China Securities
    
    Journal, Securities Times and CNINFO (http://www.cninfo.com.cn/) respectively on
    
    December 22nd, 2016, December 12th, 2017 and December 5th, 2018.
    
    5. Investment condition
    
    (1) Overall situation
    
    ?Available □Not available
    
      Investment amount during      Investment amount of the
       the  report period (CNY)      same period of last year             Variation
                                           (CNY)
                    450,762,420                  634,882,100                       -29%
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    (2) Cases of acquired significant equity investments during the report period
    
    ?Available □Not available
    
    Unit: CNY
    
                                                                                                Progress               Investment  Whether
      Invested      Main     Investment    Investment    Shareholding    Capital             Investment  Product     upto      Estimated    profitor   involved   Disclosure   Disclosur
      company     business      mode       amount        ratio       source     Partner    horizon     type     balance     earnings    lossduring     in      date(if    eindex(if
       name                                                                                      sheetdate              thereport   litigation    have)      have)
        period
        Please
        refer to
        Announce
                                                                     PTO7 Pty                                                                    menton
                                                                     Ltd,                                                                        Equity
                                                                     Woodvale                                                                    Acquisitio
                                                                     Vintners                                                                      nof
                                                                     Pty Ltd,                     All                                               Kilikanoo
     Kilikanoon   Wine                                                   W.J.                       acquisition                                December   nEstate
     EstatePty    production   Acquisition   107,194,420   80.00%       Self-owned   Duthy     50years    Wine    workshave   15,000,000   174,295    No      12th,2017    PtyLtdin
     Ltd        andsale                                                 Holdings                    been                                              Australi
                                                                     Pty Ltd,                     completed                                          disclosed
                                                                     Warrick                                                                      on
                                                                     James                                                                        China
                                                                     Duthy                                                                       Securities
        Journal,
        Securities
        Times and
        CNINFO
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
        (http://w
        ww.cninf
        o.com.cn)
       Total        --         --      107,194,420       --          --         --        --       --        --      15,000,000    174,295      --        --        --
    
    
    (3) Cases of significant ongoing non-equity investments during the report period
    
    ?Available □Not available
    
    Unit: CNY
    
        Reasons
                               Whether              Investment   Accumulated                               Accumulated     for
                              belongs to    Involved     amount       actual                                   realized    unreached
      Projectname     Investment      fixed     sectorsof    duringthe    investment     Capital     Project   Estimated   earningsup    planning    Disclosure    Disclosureindex(ifhave)
                     mode       assets    investment     report     amountupto     source     progress    earnings   totheendof   schedule   date(ifhave)
                              investment    projects      period    theendofthe                                thereport      and
                                                             reportperiod                                 period     estimated
        earnings
     Yantai    PleaserefertoResolution
     Changyu                             Liquorand                                                                                      AnnouncementofSeventh
     International    Self-constructed  Yes        alcoholic   217,495,000  1,376,114,100  Owned      100%     0.00      0.00        —        2017.04.22    SessionBoardofDirectors
     WineCity                             beverage                         fund                                                          4thMeetingandResolution
     Blendingand                            sector                                                                                       AnnouncementofSeventh
     CoolingCenter    SessionBoardofDirectors
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     Yantai    8thMeetingdisclosedon
     Changyu    ChinaSecuritiesJournal,
     International    Self-constructed  Yes                  26,510,000   913,200,000   Owned      100%     0.00      0.00        —        2017.04.22      SecuritiesTimesand
     WineCity                                                            fund                                                                CNINFO
     Bottling    (http://www.cninfo.com.cn/)
     Center
     Yantai
     Changyu
     International    Self-constructed  Yes                  1,300,000    416,507,200   Owned      100%     0.00      0.00        —        2017.04.22
     WineCity                                                            fund
     Logistics
     Center
     ChangyuVine
     andWine      Self-constructed  Yes                  1,214,800    116,974,800   Owned      80%      0.00      0.00        —        2017.04.22
     Research                                                             fund
     Institute
     TreasureWine   Self-constructed  Yes                  18,830,000   128,820,000   Owned      70%      0.00      0.00        —        2017.04.22
     Chateau                                                              fund
     KoyaBrandy    Self-constructed  Yes                  11,631,000   147,329,000   Owned      85%      0.00      0.00        —        2017.04.22
     Chateau                                                              fund
     Greening      Self-constructed  Yes                  20,285,000    73,390,700   Owned      100%     0.00      0.00        —        2017.04.22
     Investment                                                            fund
     SAP
     informatization  Self-constructed  Yes                  26,510,000    37,850,000   Ownedfund  40%      0.00      0.00        —        2018.04.23
     forindustrial
     production
     Fireprotection   Self-constructed  Yes                  4,570,000    4,570,000   Ownedfund  50%      0.00      0.00        —        2018.04.23
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     engineering
     projectof
     research
     institute
     Maintenance
     and
     reconstruction
     projectof      Self-
     Etablissements   constructed     Yes                  8,790,200    8,790,200   Ownedfund  80%      0.00      0.00        —        2018.04.23
     Roullet
     Fransac
     Chateauin
     COGNAC
     Oakbarrel
     procurement    Others         Yes                  6,432,000    6,432,000   Ownedfund  60%      0.00      0.00        —        2018.04.23
     project
     Total         --            --            --      343,568,000  3,229,978,000  --         --        0.00      0.00        --         --                   --
    
    
    (4) Financial assets investment
    
    ① Security investment situation
    
    □Available ?Not available
    
    There are no security investments for the Company during the report period.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    ② Derivatives investment
    
    □Available ?Not available
    
    There are no derivatives investments for the Company during the report period.
    
    (5) The usage situation of raised capital
    
    □Available ?Not available
    
    There are no usage situations of raised capital for the Company during the report period.
    
    (6) Sale of significant assets and equities
    
    ① Sale of significant assets
    
    □Available ?Not available
    
    There are no sales of significant assets during the report period.
    
    ② Sale of significant equities
    
    □Available ?Not available
    
    (7) Analysis of main holding and joint stock companies
    
    ?Available □Not available
    
    Situation of main subsidiaries and joint stock companies affecting over 10% of the Company’s net profit
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Unit: CNY
    
      Companyname    Company type      Mainbusiness      Registered capital     Total assets     Netassets     Operating revenue    Operating profit    Netprofit
     Yantai                          Development,
     Changyu-Castel                   production and sale
     WineChateau       Subsidiary     ofwineand         USD5million          255,992,191    84,122,529         121,235,278        5,168,651    3,710,124
     Co.,Ltd                         sparkling wineand
                                    touristserdeputy
     Chateau                         Development,
     ChangyuAFIP       Subsidiary     production and sale   CNY642.75million      681,088,671   618,490,126         159,369,783       20,194,892   16,555,846
     Global                          ofwineandbrandy
     DicotPartners,                    Production and
     S.L.Hacienda Y     Subsidiary     operation ofwine     EUR2,385,732         563,501,798   127,321,546         327,550,545        2,162,404    3,811,465
     Vinedos Marques                 andother liquors
     DelAtrio. sl
     Indomita Wine                   Production and
     Company Chile,      Subsidiary     operation ofwine     USD47.19million       515,753,832   362,418,343         262,104,563       21,066,614   15,934,347
     SpA                            andother liquors
    
    
    Acquisition and disposal of subsidiaries during the report period
    
    ?Available □Not available
    
             Company name            Mode of acquisition and disposal of subsidiaries during the        Effect on overall production management and
                                                           reportperiod                                          performance
         KilikanoonEstate Pty Ltd                         Equity acquisition                                          174,295
    
    
    Explanation on main holding and joint stock companies
    
    The consolidated income of Kilikanoon Estate Pty Ltd shown in main financial information of the important non-wholly owned subsidiaries listed in
    
    financial statement’s note “8. Equities in other subjects” is a loss. This is due to the “Premium” acquisition when the Company acquired Kilikanoon
    
    Estate Pty Ltd. The value-added portion of the asset valuation in the purchase price is subject to the “Amortization” of the asset's useful life (3-20
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    syteaatresm) einntsa. cTchoerdaCnocmepwanityh’sthmeaicnurorevnetrsaecacsocuonmtinpgansietasnhdaavrdesgwoohdeneaCrnhiannggsyupecrfoonrsmoalindcaetinogf
    
    their own.
    
    (8) Situation of the structured subjects controlled by the Company
    
    □Available ?Not available
    
    (9) Expectation for the Company’s future development
    
    fOonllotwheingbajsuidsgmofenotusronlimthietewdineexpinedriuesntcrye aannddfuptruorfeesdseivoenlaolpmskeilnlts:, the Company makes the
    
    U1)nTdehreusneccetortraicnotmy pefefteictitosncapuastetderbnyatnhde dsleovweldoopwmneonft ntraetinodnal macroscopic economy growth
    
    canodmpthaeratSivineoly-Awmeaekri,ctahne tsraaldees gfrroicwtitohni,stwheeaokv,earnadll tdheemoapnedratoiofnCfhoirnmesoef wthieneCommaprkaenty iiss ssttiillll
    
    c“ofrmagpmareantitvateiloyn”seovferwe.ineThmearckheatnbgeecsomofe tsheerioaulcso, hleoaldicnognstuomdpitfifoicnuletinevsirionnsmeellnintgmhaikghe-etnhde
    
    ipnroimdupcrtosv. iCnogntshuemceorsst tpeenrdfotrombaencmeoorfeprraotidouncatls,. wOhwicinhgrethqautiriensfluCxhaonfgpyluenttoymofaikmepmoortreedewffionretss
    
    Ew-ocuolmdmfuerrtcheercacuosmespraesgsretahteimdopmacetstoinc twheinetramdiatirokneat lsshaalreess cahnadnntehles, ntheewccohmapnenteiltsionsuicnh thaes
    
    dcoosmt,efsrteicigwhtinaendindduepstrreyciwatiilol nstielxl pbeenfsieeracnedaot tphreerseenxtpaenndseisnatrhee lfiukteulryetlooningctriemasee.,Rbarwingminagterbiiagl
    
    ipnrceossmuere, mtoorteheanCdommopraenyp’esopplreofwitaobuilldityp.urBsuuet ihneatlhthe alonndgfarsuhni,onthlainfeksmtoodeinacnredasteheinpetohpelier
    
    fwixoeudldcboensiunmmerorpeopfauvlaotrioonf owfinweisnewhisicnhofiltoqnugietre lwimeiltlewd ittoh tthhee tmreindddleofcclaosnssuamndpthioignh. -Tenhde
    
    panedopoleld. Mcoonresuamnedrsmworiellygoruandguaplelyopslheifwt itlol jtohien trhaenkwsinoef cdorinnskuimngptwioinnearfmory,haenadlthmaidnddleh-eaagletdh
    
    dcoenvseildoeprmateinotnst.r“eLnde,ssadnrdinkthinugs, cdorinntkininugougsoloydewxpinaen,dhetahlethydedmriannkdingfo”rwqilulablietcyomweinteh,e wfuhtuicrhe
    
    dbreatenrdmyinaensdthweinheugweitmhabrkeettterdecvoesltoppmerefnotrmpaontecnet,iawl hoifchChminaeysegrwoiwnefainsdteurs.trCy,hiensap'secpiaolslyt-9f0osr
    
    edmomeregsitnicg cwoinnseusmpeorpgurloaurpws ihtahvemgorraeduyaolulyngrisceonn, saunmdetrhse. irAsftfreocntgedlobcayl tahwearheenaedssewffiellctm, athkee
    
    ecanphaacnictyed,ofancdonthtreolplirnogduwcthsoelegminendtuasttiroinal spchacaeinwoifll lbaerglea-rsgcearleanedntlearrpgreisre, slawrgiell abned sfturrotnhger,
    
    csmircallel-laaynedr sboecaiaultifcuolntawcitl,l prcioveaxtei-sstphhearremEo-nbiuosuisnleys.s,Amcecmurbaetershmiparskyesttienmg wrielpl rbeesetnhteedmobsyt
    
    echffaelcletinvgeesm, athrkoesetinegntemrpordisee. sInthastupchossaescsassetroonfg lbornagn-dteirnmfluceonecxeisatnendcme aorkf eotipnpgoartbuinliittyie,scaatnchd
    
    tshaeleospcphoarntunneiltsi,esti,maecltyiveslaytistafykethaedjcuosntmsuemntesr,sm’ dakeme faunldlsusaendofpnroevwidlye epmroedrguicntsg wanitdhtrhaidgihtiocnoastl
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    pneewrfopramttaenrcneowf tihllehfauvteurteheCohpinpeosretuwniintye tmoabreketht.e final winner of competitions, and then form a
    
    T2)hTe hCeoCmopmanpyanwyi’lsl dienvsiesltopthmeendtevsetrloaptemgeynt direction of “Focus on middle-and-high level,
    
    Fstoractuesgyonofhsigahmequimaliptoy,rtaFnocceusbeotnwebeign pwriondeuacnt”d, bcroamndpyre,heenndseiavveolyurimtopplermomenottethtehedhevaremloopnmioeunst
    
    dmeavrekleotpinmgenmtodoef, vinadriuosutrsioluisqluyordse,vealcotpivemlyiddelxep-aanndd--hthigeh-secnodpewionfescaonndsubmrapntidoyn, sftireelndgtahnedn
    
    tphreodmucatrskewtiinthghliegvhelcoosftipmeprfoorrtmedanwcien.e and strive to provide consumers with a rich variety of
    
    I3n) M20a1n9a, gtheme Cenotmpplaannyfowriltlhteryneitws ybeeastrto realize operating revenue of not less than CNY5.3
    
    billion and control the main operating costs and three period expenses below CNY3.7 billion.
    
    I4n) Moredaesrurtoes btoetbteer tackatecnhboyptphoertCunoimtiepsanaynd face challenges, the Company will take full
    
    iandtvearnnatalgaedojufsstmelef-notwannedd raedfovramntaatgioens, dmeegerteec,haalclceenlgeersa,teadthheerelautoncmharokfetn-eowriepnrtoatdiuocnt,sinatnednstihfye
    
    fpoaccuesinogf omnargkreotssdpervoefliot prmateenatn, dimprpolfeimt, epnutt athtteenptieornfotromdaoncwe elalssinesfsomlleonwt inmgowdeorkosf inm2ai0n1l9y
    
    Tanhde sftirrisvteistotoacahrioeuvnedanthneuadleovpeeloraptmioennttarsgtreattse.gy of focusing on mid-to-high end, focusing on
    
    hprigohfitqaubailliittyy., aTnhde foCcoumsipnagnyonwbiilgl pfirromdluyctc, oancscoelliedraattee tthhee idnotemrninalanret fostramtu,sanind fduormtheesrtiecnhwainncee,
    
    eimstpabolritsehd thweinlee,adeinnsgurpeostirtiipolne infocduosminegsticstrbartaengdyy,cabnrinbgethime paldevmanentatgede oofnbathcekwgarrodunnedss biny
    
    “vcaorinosutsanbtlrya,ndesv,eriynwclhuedrienganwdineev,erbyroannde”y, aanndd ipmropmoroteted tlhiqeuocro.mBpereshideenss,ivtehedeCvoemloppamneyntwiolfl
    
    feuarcthhelriqiumoprrcoavteegsoarlye,s eosrtgabanliiszhatcioonmpstertuitcitvuereb,einmchpmroavrek roeflaetaivcehlyliqinudoerpceantdegenotrysaalneds dsyestetermminoef
    
    sctartuccht-uurpe otafrsgaelte.s Fsyusrtthemer,mcoorme,pltehtee tCheomtrpaannsfyorwmialltioinntefrgormatemaanndageompteimntizdeeatlheers otorgsaenridzeaptiuotny
    
    ddeeaalleerrss,aesnsaobolenmasorpeospseiobplel,e ftuotusreervcelotseermtoinmalasrkaentdacnudstcoumsteorms ewrist,hudseealleesrss,paesokplteertmoimnaalnsafgoer
    
    ssatrleensgvthoelunmede, caonndsatrsukctciuolntiovfatsianlgesedteuacmatiwngithfodreaglreorws twh.illDbeealperrotmeaomtedbuainlddimngarwkiinllgbaebifluitrythoerf
    
    idnevaelesrtms ewntillinbpelaceen.hNanecwedp.ro“dFuucntddepvoeolol”pmweinllt wbeillbbueilatccweiltehratdeeda.leNrsewtoprgoudaurcatnstienetromdaurckeedt
    
    fteorrmwoinfemiindclaunddeslotwh-eennde,wwRhielnean,eCwasptreol,duAcFtsIPin, tTroidnuloctedanfdorrebprarensdeyntiantcilvuedebsra“nKdOs YofAw1i9n1e5i”n,
    
    fmuirdth-eenrdimCphraonvgeyauuFthinoerizBerdanmdaynoafge5msetanrt asnydstelomw-oefnpdaPrtEiaGl AseScEon. dMaroyreuonvietsr, atnhde Cproommpoatneyrawpiildl
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    datevalellolepvmelesn,tstorfenagutthheonrizgerdosms panroafgietmraetentaussneistss,meesntatb, lainshd iamspimrouvleatsioalnesprporfoiftitaasbsielsitsym. ent system
    
    bTehset spercoodnudctiss. tTohinesCisot monpa“noyrigwinilallictoy-”osrpdiirniat,testrdeonmgtehsetinc qaunadlitfyormeiagnnagraewmemntataenrdiapl rroedsuocuerctehse,
    
    iinncvreesatisgeatitohne ssycsatelem offor hriagwh-qmuaatleitryial rasuwppmlieartse,riaanldbfausretsh,ereismtapbrloisvhe raawqumalaitteyria“lliqfeulaolnitgy”.
    
    pBreosdiduecsti,onthesysCteomm,pasntryenwgtihllenmeafkfeortisnteolnlectetucahlnizoalotigoincalanidnnionvfaotrimona,tioanndtrcaonmsfporremhaetniosinveolyf
    
    timhepcroovnestrruecsteiaornchofawndindemevaekloerpmteeanmt,ceasptaabbliilsithieqsu. aFliutrythreersmpoonrsei,btihlietyCsoymstepmanyofwwiilnl esmtraeknegrthfeonr
    
    banradnldesarannidngwoitfhwtihneehmelapkeorfs,oivmeprsreoavseabcrqeuwisinitgiotnecohfneiqnuteerplerviseel,palnadtforermalsiz, eenbhiganbcreeaekxthchroaungghess
    
    Tofhkeetyhilridnkiss tsoucfuhrathseirntoeprntiaml iqzueasltiatyffosftrpurcotduurec,tsc.ompress the scale of production personnel and
    
    moraiennatgeedm, ernetsuplterosorinennetel.dTahned Cinomlpinaenywwithill thime pprorivnecipinlecenotfiv“eSmmaoldlelA, dajduhstemreentto asntrdugBgilge
    
    Iwniclel nftuivrteh”e,ranedstainbtleisnhsifayndtheiminpcreonvteivetasleonftketeyamem, pelnohyeaensceantdhestrtirvaeinrsin. gBeasniddesi,nttrhoedCucotmiopnanoyf
    
    ipnrnoofevsastiioonna,lantdaleennhtsa,nccerethateeovaerlaelal rennitnhgusioarsgman, iczraetaitoinv,ityvaignodrocoumslybatseufpfpeoctritveannedss eonfcsotaufrfa.ge
    
    nTehwe fopurortjhecitsstoesxtcreicpttlyscaofenttyrolptrhoedsuccatiloeno,f cqaupailtiatyl eximpepnrdoivteumree,nint siasntdonsntaortteidnvepsrtoinjegctisn. oTthheer
    
    Cmoomdepraanteylywielllifmuirnthaeter rbeavcitkawlizaerdcuprrroednut catsisoents,campaakceityfu, lloupstiemoifzeadpvraondcuecdtipornodcuacptaiocnitycalpaaycoiutyt,,
    
    astnrdivbeettoterimcrperaotveevpalruoedufoctrioshnaereffhioclidenercsy. and asset utilization, further reduce production costs,
    
    oTpheeraftiifotnhalisritsoksi.nTtehnesiCfyomaupdaintyswupilelrvpirsoiomno,teimthperorveefoirnmteronfalaucdoint tsroysl tesmys,teamdj,usatndtheprseevteonft
    
    aBuedsiitdeisn,sttihtuetiCoonms,piamnpyrowviell dinetpeanrstuifrye tahuedaitu,daitndtoimprpicreoviempthleemeevnatlautaiotino,ngrsoyssstepmroffoitr mcaadrgreins,.
    
    cefafpoirttasl toocceucpoantoiomni,ckreeyspeoxnpseibnisleitsyainndveasutdigitatoiofnt.ecFhunritchaelrmtroanres,fothrme aCtioomnpparnoyjewctisl,l ainmdprionvcreeathsee
    
    apsrosefistsmoernietnmteedt.hoMdsorfeoorvreers,potnhseibCiliotympsyanstyemwoilfl leeasdtainbglisghroaunpds aitmapllrolveveeltsheandthsretree-ning-tohnene
    
    s“uppreevrveinsti”onsimsyusltteamneooufslayudtoitirnegd,ucfeinmanacneagaenmdednitsrciispklsin. e committee and achieve “check” and
    
    10. The Company’s receptions of research, communication, visit and other activities
    
    Aducrtiinvgitythreergeipstorrattipoenrifoodrm for receptions of research, communication, visit and other activities
    
    ?Available □Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
       Receptiontime     Reception pattern    Type oofbjreeccteptionBasic sirteucaetpiotinonindexof
     July 2nd, 2018       Field research       Institution          Yantai Changyu Pioneer
     October 20th, 2018   Field research       Individual          RWeilnaetiConos.,ALctdti.vIantivoenstRorecord
                                                              Form of the Company’s
     October 26th, 2018   Field research       Individual          I“nInfovremstaotrioRne”laotnioCnsNINFO
                                                              (http://www.cninfo.com.cn/)
     Times of reception                                                                 3
     Number of institution reception                                                     7
     Number of individual reception                                                    21
     Number of other objects reception                                                   0
     Wmahteetrhiaelrntoondpisucblloicsei,nrfeovrmeaaltaionndleak      No
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual ReportV. Major issues
    
    r1e. sTerhveeCompany’s ordinary share profit distribution and increasing equity with capital
    
    Ordinary share profit distribution policies especially promulgation, implementation or
    
    adjustment of cash dividends policies during the report period
    
    ?Available □Not available
    
    Deliberated and passed by the 2017 Shareholders’ Meeting convened on May 24th, 2018 by
    
    the Company, the Company’s 2017 annual profit distribution scheme is shown as follows:
    
    based on total 685,464,000 shares (including 453,460,800 A shares and 232,003,200 B shares)
    
    up to December 31st, 2017, the Company would pay cash dividend to all shareholders
    
    registered on the share registration day: CNY5 in cash per ten shares. This time the Company
    
    would neither dispatch bonus shares nor increase equity with capital reserve.
    
    Total amount of shares has not changed since the disclosure of the distribution plan to the
    
    implementation period.
    
    On June 30th, 2018, the Company published the Implementation Announcement of 2017
    
    Annual Equity Distribution on China Securities Journal, Securities Times and
    
    www.cninfo.com.cn, determining that the share registration day and the ex-dividend day of A
    
    Share was respectively on July 6th, 2018 and on July 9th, 2018; the last trading day, the share
    
    registration day and the ex-dividend day of B Share was respectively on July 6th, 2018, on
    
    July 9th, 2018 and on July 11th, 2018.
    
    This time the dispatching objects contain all A Share shareholders registered at China
    
    Securities Depository and Clearing Corporation Limited Shenzhen Company after closing of
    
    Shenzhen Stock Exchange in the afternoon of July 6th, 2018 and all B Share shareholders
    
    registered at China Securities Depository and Clearing Corporation Limited Shenzhen
    
    Company after closing of Shenzhen Stock Exchange in the afternoon of July 11th, 2018.
    
    This dispatching has already been completed in mid-July 2018. The profit distribution
    
    scheme implemented this time is consistent with the scheme deliberated and passed by the
    
    shareholders’ meeting. The implementation of the profit distribution scheme for this time is
    
    not more than two months after the shareholders' meeting passing it.
    
     Whether it is in accordaSnpceeciwalitehxtphleanreaqtiuoinrefmoretnhtesocafsthhedirvegiduelnatdisonpoinlicthyeArticles   Yes
     WofhAesthsoecritahteiodnisatnridbuthtieornessotalnudtiaorndoafnsdhparroehpoolrdtieornsis clear and definite              Yes
     WWhheetthheerrtthheeirneldeevpaenntddeenctisdiiorencptororscepsesrfaonrdmmtheecihrarneisspmonissicboilmitipelsetaendplay the roles   YYeess
     Waddheepthuetrysthaensdmaaplpleaanlds,masidwdelellsahsatrheheiorldlaewrsfuhlarvieghthteancdhainncteeretosteixspirnesasntehneoirughYes
     pWrohteetchteiornitis legal and transparent for the condition and process while adjusting     Yes
     and amending the cash dividends policy
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    TinhcereaCsoinmgpeaqnuyi’tsy wscithhemcaepit(aplrerelismerivneariyn tshcehreemceen)t othfreoerdyienaarrsy(inshclauredinpgrothfiet rdepisotrritbpuetriioond)and
    
    The Company’s profit distribution scheme in 2016 is as following: Because the left amount
    
    of legal earned surplus reserve reaches 50% of the registered capital, while making profit
    
    distribution, the legal earned surplus reserve will be not drawn. Based on the Company’s
    
    685,464,000 shares at total up to December 31st, 2016, we plan to pay CNY5 in cash as
    
    dividends for every ten shares (including tax) to the Company’s all shareholders, totaling up
    
    to CNY342,732,000 accounting for 34.89% of the net profit CNY982,460,488 attributable to
    
    the shareholders of the parent company in the consolidated statement, the retained and
    
    undistributed profit of CNY639,728,488 will be reserved for the distribution of next year.
    
    TofheleCgaolmepaarnnyed’s spurropfliut sdirsetsreibrvuetiorneascchheesm5e0%in 2o0f1t7heisreagsifsotellroewd icnagp:itBael,cawuhseilethme alkefitngamporoufnitt
    
    d6i8s5tr,4ib6u4t,i0o0n0, tshhearleesgaalt etaortnaledupsutroplDusecreemsebrvere 3w1isltl, 2n0o1t 7b,ewderapwlann. BtoaspeadyoCnNthYe5Cinomcpasahnya’ss
    
    dtoivCidNeYnd3s42fo,7r3e2v,e0r0y0,teanccsohuanretisn(ginfcolru3d3in.2g2t%ax)oftothteheneCtopmropfaint yC’Ns Yal1l ,s0h3a1r,e6h9o5l,d0e5r6s,attotrtaibliuntgabulpe
    
    utondthisetrisbhuatreedhoplrdoefritsooffCtNheY6p8ar8e,n9t63c,o0m56pawniyll ibne trheesercvoendsofloirdathteeddissttartiebmuteinotn, othf enerxettayienaerd. and
    
    oTfheleCgoalmpeaarnnye’ds psruorfpitludsisrtreisbeurvtieonresacchheemse 5in0%201o8f irsegaisstfeorleldowcianpgi:taBl,ecwauhsielethmealkeifntgamporoufnitt
    
    d6i8s5tr,4ib6u4t,i0o0n0, tshhearleesgaalt etaortnaledupsutroplDusecreemsebrvere 3w1isltl, 2n0o1t 8b,ewderapwlann. BtoaspeadyoCnNthYe6Cinomcpasahnya’ss
    
    dCiNviYde4n1d1s,2f7o8r,e4v0e0ryactecnousnhtaerde (fionrclu3d9i.n4g5%taxo)ftontehtepCroofmitpsaCnyN’sYa1l,l0s4h2a,6re3h2o,9ld2e9rs,atttortiabluintagbulep ttoo
    
    suhnadrieshtroiblduetresd porof fitpaorfeCntNYc6o3m1p,3an5y4,52in9 wthilel becornesseorlvideadtefdor dsitsattreimbuetniotsn. inTthhee nreexttaiyneeadr. and
    
    The Company’s ordinary share cash dividend record in recent three years (including the
    
    report period)
    
    Unit: CNY
    
      Year of   Amountofcash Netprofitbelonging Proportionin  Amountof  Proportion Amountofcash   Proportion
     distribution    dividend       tothelisted    thenetprofit     cash      ofcash     dividend      (including
               (including tax)     company’s     belongingto dividends(eg. dividends  (includingother otherways)in
                            shareholders inthe   thelisted     shares     inother      ways)      thenetprofit
                               consolidated    company’s  buy-back)in   ways                 belongingto
                             statement ofthe   shareholders  otherways                          thelisted
                             distribution year     inthe                                      company’s
                                            consolidated                                   shareholders
                                           statement (%)                                     inthe
                                                                                        consolidated
                                                                                       statement (%)
    2018      411,278,400.00 1,042,632,929.00 39.45%     0.00       0.00%   411,278,400.00 39.45%
    2017      342,732,000.00 1,031,695,056.00 33.22%     0.00       0.00%   342,732,000.00 33.22%
    2016      342,732,000.00 982,460,488.00   34.89%     0.00       0.00%   342,732,000.00 34.89%
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    During the report period, the Company earned profit, the profit of the parent company that
    
    could be distributed to ordinary share shareholders was positive but without proposing
    
    ordinary share cash dividend distribution preliminary scheme.
    
    □Available ?Not available
    
    2. The Company’s preliminary scheme of profit distribution and preliminary scheme of
    
    increasing equity with capital reserve for the report period
    
    ?Available □Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     Number of sending bonus shares per ten shares (share)                                 0
     Number of dividend payout per ten shares (CNY) (including tax)                        6
     Number of transferring per ten shares(share)                                          0
     Tschheemcaerd(isnhaalren)umberof the capital stocks for the preliminary distribution      685,464,000
     Total cash dividend distribution(CNY)(including tax)                     411,278,400
     Amount of cash dividends(eg. shares buy-back) (CNY)in other ways                 0
     Total cash dividend distribution(CNY)(including other ways)               411,278,400
     Attributable profit(CNY)                                             1,042,632,929
     dTihsetribpurtoiopno(ritniocnludoinfgocathsehrwdaivyisd)enddistribution  in  the  total  profit            100%
                              Cash dividend distribution this time
     IwfhtihleeCmoamkipnagnyp’rsofdietvdeilsotrpimbuetniotnis,tihnegrporwopthorstitoangeoafncdasmhajdoirvicdaepnidtaslsehxopuelnddittaukreesisuparrnaongleesds,
     than 20% in this profit distribution.
       Detailedexplanation for the prelimwiniatrhycsacphietamlereosferpvreofitdistribution or increasing equity
     AnectcoprrdoifnitgbteolothnegianugdittorethsueltpfarroemntDcoemlopitatenyH’suastYocoknhgoCldeerrtsifiiendtPheubcloicnsAoclicdoautnedtansttsatFemirmen,tthine
     22001188iissCCNNYY916,094,528,683,527,932.9and the net profit of the parent company in financial statement in
     AcocncsoorldidinagtiontoanPdRthCepaacrceonutnctoinmgpasntyanidna2rd0,18thasefosliltouwatiinogn:for  attributable  profits  of  the
                                                                             Unit: CNY
                                                  Consolidation      Parent company
        Undistributed profits at the end the year          8,008,982,547      8,437,957,128
        Including: net profits in 2018                   1,042,632,929        969,588,573
        Ubengdinisntriinbguotefdthperoyfeitarcarriedforward of the       7,309,081,618      7,811,100,555
        Distribution of 2017 dividends                   342,732,000        342,732,000
        Withdrawal legal surplus reserve                           0                 0
     ACoccmoprdaninygcatondreisgturilbautitoendiovfid1e5n7dtsheiittehmeriinncthasehAorrtibcylesstoocfk,Atshseocpiraotfiiotnt,owbehidcihstriisbuthteadte“atchhe
     aycecaurmisulantoetdlseusmstohfapnro2f5it%toobfetdhiestrdibisuttreibduitnabclaeshpirnoftihterleaasltizthedreeinyetahresissamnoetlyeessarthaannd30th%e
     ocofntshiedeyreinarglythaevelarraggeeadmisotruinbtutoanblteheprcoafpitittaolebxepreenadliiztuerdeiinnt2h0e1l9a,stunthdreerethyeeacrso”n.dMitieoannowfhniloet,
     isncfhleumenecoinngprtohfeitndoisrmtriablutpiorondiunc2ti0o1n8aansdfoollpoewraintigo:n,the Company put forward preliminary
     Bwehcilaeusmeatkhienlgefptraomfiotudnisttorifbluetgioanl,eathrneedlegsuarlpeluarsnreedsesruvreprleuascrheesser5v0e%woifllthneotrebgeisdterraewdnc.aTpihtaeln,
     bpaasyedCNonYth6einCocmasphanays’dsi6v8id5e,n4d6s4,f0o0r0esvhearryesteantstohtaarlesup(itnoclDudeicnegmtbaexr)3t1ostt,h2e0C18o,mwpeanpyl’asnatlol
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    CstoNcYkh1o,0l4d2er,6s,32t,o9t2al9inagttriubputtaobleCtNoYth4e11sh,2a7re8h,4o0ld0e, rsacocfotuhnetipnagrenfot rco3m9.p4a5n%y inofthtehceonnseotlipdraotefidt
    
    dstiastterimbuentito;nthoef nreetxatinyeedaru. nTdhisetrcibaushteddivpirdoefintdodfisCtrNibYut6e3d1,t3o54sh,5a2re9howldilel rsbeofredsoemrveesdticfolristthede
    
    fboertewigenenshCaNreYs (aBndshHaoren)gkisonpgaiddoilnlarHiosnsgukedonbgydtohlelarPecoopnlvee’rsteBdabnakseodf oCnhitnhae omnidtdhlee friartset
    
    working day after the resolution date of 2018 shareholders’ meeting.
    
    3. Implementation of commitments
    
    a(1c)quCiormerms iatnmdenthtse tChaotmtphaenCyoamnpdaontyh’esrarcetulaatledcocnotmromlleitrms,esnhtapreahrtoiledserhsa,vreeliamtepdlepmaerntiteesd,
    
    during the report period and have not implemented up to the end of the report period
    
    ?Available □Not available
    
      Commitments   Commitment Commitment  Commitment   Commitment  Commitmentpartytype        content         time         period      Implementation
    Commitments at
    share reform
    Commitments made
    in acquisitionreport
    or equitychanges
    report
    Commitments at         -                        -                          -             -
    asset restructuring
                         Yantai       Solve    Non-horizontal                             Hasbeenperforming
    Commitments atthe   Changyu     horizontal   competition     May18th, 1997    Forever          strictly
    initial public       GroupCo.Ltd.  competition
    offering or                      Cleartheuse Accordingto                               Accordingto
    refinancing                      of trademark  Trademark                                TrademarkLicense
                                     royalty    License                                   Contract,the
                                               Contract,the                               trademarkusefee
                                               trademark                                 annuallypaidbythe
                                               royaltyof                                 Companyto
                                               Changyuand                               ChangyuGroupshall
                         Yantai                other trademarks                            be mainlyusedby
                        Changyu                paidbythe      May18th, 1997    Forever    ChangyuGroupto
                     Group Co.,Ltd.             Companyto                               publicizetrademarks
                                               YantaiChangyu                            andcontract
                                               GroupCo.,Ltd                             products.Except
                                               everyearis                                2013to2017during
                                               mainlyusedfor                             whichthe
                                               advertising                                commitmentwasnot
                                               Changyuand                               strictlyperformed,
                                               othertrademarks                            YantaiChangyu
                                               andthis contract                            GroupCo.,Ltd.has
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                               productsby                                beenperformingits
                                               YantaiChangyu                            commitment.
                                               GroupCo.,Ltd.
    Equity incentive
    commitments
    Commitments at
    middle andsmall
    shareholders ofthe
    Company
    Commitment under
    timely            No
    implementation or
    not
                     AccordingtotTrademarkLicenseContract(hereafterreferredto as“theContract”),ChangyuGroup
                     promisesthatthetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainly
                     used by ChangyuGroupto publicizetrademarksandcontractproducts.Butabove-mentioned‘mainly’is
                     not a specificnumber,whichis easyto causedivergenceduetodifferentunderstandingandleadsto
                     problem appearanceduringtheimplementationprocess.
                     From2013to2017,ChangyuGroupcollectedatotal ofCNY420,883,902trademarkusefee,ofwhich
                     51%wasusedtopublicize trademarksincludingChangyuandcontractproductswithamountof
    Whether ornotto   CNY214,650,790.TheamounthasbeenusedtopublicizetrademarksincludingChangyuand contract
    have specific      productsisCNY50,025,181,with abalanceofCNY164,625,609.
    reasons of the      In2018and2019,thetrademarkusefeecollectedof2017and2018isCNY155,623,907,ofwhich51%
    unimplemented     isusedtopublicizetrademarksincludingChangyuandcontractproductswithamountof
    commitment and   CNY79,368,193.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontract
    next steps         productsisCNY12,225,187,with abalanceofCNY67,143,006.
                     Since2013,theaccumulatedbalanceof ChangyuGroupusingto publicizetrademarksincluding
                     ChangyuandcontractproductsisCNY231,768,615.
                     ChangyuGrouppromisesthatthefour-yeartrademarkusefeefrom2019to2022will beusedforoffset.
                     If insufficient,theshortfallwouldbefilled inonetimein2023.Ifthereisanyexcess,theexcess portion
                     of thetrademarkusefeewouldbecollectedfromtheyearwithexcess occurrence.IfChangyuGroupis
                     not abletoimplementtheabove-mentionedcommitmentowingtovariousreasons,theCompanywill
                     timelysuperviseandurgeChangyuGrouptofulfillits commitmentandrequestChangyuGrouptoraise
                     fundsthroughbankloaning,assets salesand equitysalesetcinordertoimplementthecommitment.
    
    
    (a2s)seTtsheorCpormopjeacntsyasnhdouitlds rmeaaskoenaifsttahteermeeisntporonfitthfeoarcehcaiesvteodf Coroigminpaalnpyr’sofaistsfeotrseocrast of
    
    projects and the report period is still in the profit forecast period
    
    □Available ?Not available
    
    4. Non-business capital occupying of listed company by controlling shareholder and its
    
    related parties
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    □Available ?Not available
    
    There are no non-business capitals occupying of listed company by controlling shareholder
    
    and its related parties during the report period.
    
    5p.erEioxdplafrnoamtionbooafrdNoonf -dstiarnecdtaorrds,AbuodaitrdReopforstupgeivrevnisobrys aacncdouinntdienpgenfidremntinditrheectorerpso(ritf
    
    have)
    
    □Available ?Not available
    
    a6.ccCouonmtipnagrepdoliwcyit,hactchoeunltaisntgyeesatirm’satfiionnaanncidalacrceopuonrtti,ngexmpelathnoadtion for the changes of
    
    □Available ?Not available
    
    mTheethreodi.s no situation for the changes of accounting policy, accounting estimation and accounting
    
    b7.eTrheterosistpueacttioanndexrpelsatnaatetdiondufroirntghtehceorrerpeoctritopneorfiomdajor accounting errors which need to
    
    □Available ?Not available
    
    Trehsetarteedis. no situation for the correction of major accounting errors which need to be retrospect and
    
    8co. nCsoomlidpaatreeddstwatitehmethnetslsacsotpyeear’s financial report, explanation for the changes of the
    
    ?Available □Not available
    
    CAoccmoprdaninygatnodSshhaarreehSoalldeer&s oPfuKrcihliaksaenoAognreEesmtaetnetPstiygnLetdd,otnheDCecoemmpbaenry5athc,q2u0ir1e7db8e0tw%eeenqutihtye
    
    oCfNYK1i0li7k,a1n9o4o,4n20)Estota.teThePtCyomLptadnywhiatsh cotmheplepterdiceequoitfy tAraUnsDfe2r0,o8n60J,8an2u5ary(e1q8utihv,a2le0n1c8e,
    
    tohbetarienpionrgt cpoenritorodl, trhigishtcsoomfpfainnaynhcaesabnedenbuinsicnluesdsedpoinlicthyefoscroKpeiliokfacnoonosnoElidstaatteedPsttyatLemtde.nDtsu.ring
    
    9. The appointment and dismissal of certified public accountants
    
    Currently appointed accounting firm
    
    Domestic  accounting  firm  name           Deloitte Hua Yong Certified Public Accountants
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                                Firm (special general partnership)
    (RCeNmYun‘0e0ra0t0io)nfor domestic accounting  firm                                           198
    dCoomnseesctiuctiavcecopuernitoindgfofrirtmheaudit serdeputys of                                             6
    sNeardmeepuotfycseortfifdieodmpeustbiclicacaccocuonutnintagntfifromrthe audit                    Xie Yanfeng, Li Yangang
    Cacocnosuenctuatnivt’espaeurdioitdsefordretphuetcyesrotiffideodmpeusbtliicc                          -
    accounting firm
    Overseas accounting firm name (if have)                                                  0
    (RCeNmYun‘0e0ra0t0io)n(iffohraovvee)rseasaccounting  firm                                              0
    Covoenrsseecaustaivcecopuenritoindgfofirrmthe(iafuhdaivtes)erdeputysof                                            -
    Nseardmeepuotfycseortfifoievderpseuabsliaccaccocuonutnintagnftirfmor(tihfehaauvdei)t       -
    aCcocnosuenctuatnivt’espaeurdioitdsefordretphuetcyesrotiffioevdeprsuebalsic                          -
    accounting firm (if have)
    
    
    Whether or not to dismiss the accounting firm during the report period
    
    □Yes ? No
    
    To employ internal control audit accounting firms, financial adviser or sponsor.
    
    □Available ?Not available
    
    10. Face of suspension and termination of listing after the disclosure of annual report
    
    □Available ?Not available
    
    11. Bankruptcy reorganization
    
    □Available ?Not available
    
    There is no bankruptcy reorganization during the report period.
    
    12. Material litigation and arbitration
    
    □Available ?Not available
    
    There are no material litigation and arbitration during the report period.
    
    13. Penalty and rectification Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    □Available ?Not available
    
    There are no penalties or rectifications during the report period.
    
    14. Credit of the Company, holding shareholders and actual controllers
    
    □Available ?Not available
    
    o15r.oItmheprleemmepnlotayteieoninocfenthtieveCmomeapsaunrye’ss equity inventive plan, employee stock ownership plan
    
    □Available ?Not available
    
    TplhaenreanadreotnhoerimemplpelmoyeenetaitniocnenotifvtehemCeaosmurpeasndyu’srinegqutihtey rienpvoernttpiveeriopdla.n, employee stock ownership
    
    1(16). RSieglnatifeidcatnratnrsealactteiodntsrainnsraeclatitoionns to daily operations
    
    ?Available □Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     Related    Relationship  Type       Content     Pricing     Price       Amount     Proportion   Approved    Whether     Clearing    Available    Disclosure  Disclosur
     party                                     principle              (CNY‘0000)  accounting   transaction   exceed      form      marketprice  date      eindex
                                                                            for amount  quota       approved             of  similar
                                                                            of  similar  (CNY‘0000)  transaction            transactions
                                                                            transactions            quota
                                    Purchase                           17,324      9.08%      18,000
      Yantai    Controlled    Purchase      and
      Shenma   bythesame     and     commission  Agreement   Determined                                     No       Cash       No     April23rd,     -
     Packaging    parent    commission   processing    pricing   byagreement                                                                 2018
      Co.,Ltd.    company    processing    packing
                                    materials
      Yantai               Licensed   Licenseduse                           7,398    100.00%       7,600
      Changyu    Parent      useof    oftrademark  Agreement   Determined                                     No       Cash       No     April23rd,     -
     GroupCo.   company    intangible    andpatent    pricing   byagreement                                                                 2018
       Ltd.                 assets
     Total                                     -         -              24,722         --      25,600  -          -         -          -         -
     Detailsofthereturnoflargesales                  No
     Actual performance of the estimated total amount for
     daily operations related transactions by category that will  No
     occurduringthisperiod.(ifhave)
     Reason for the deference between transaction price and  Notavailable
     marketreferenceprice(ifavailable)
    
    
    (2) Related transactions in relation to acquisition and sales of assets or equity
    
    □Available ?Not available
    
    There are no related transactions in relation to acquisition or sales of assets or equity during the report period.
    
    (3) Related transactions in relation to commYonantfaoi rCehiagngnyuinPvioenseetrmWeinnetCo. Ltd. 2018 Annual Report
    
    □Available ?Not available
    
    pTehreiored.are no related transactions in relation to common foreign investment during the report
    
    (4) Related current credit and debt transactions
    
    ?Available □Not available
    
    Whether or not existing non-operating related credit and debt transactions
    
    □Yes ?No
    
    There are no non-operating related credit and debt transactions during the report period.
    
    (5) Other major related transactions
    
    □Available ?Not available
    
    There are no other major related transactions during the report period.
    
    17. Major and important contracts and execution results
    
    (1) Trusteeship, contract and leasehold issues
    
    ? Trusteeship situation
    
    T□hAerveaiislanboletrust?eeNshoitpasviatuilaatbiolen during the report period.
    
    ? Contract situation
    
    C?oAnvtraaiclatbslietuatio□nNdeostcarvipatiiloanble
    
    sDtruurcintugretheofreEponrtet rpperriisoed,garobuopu”t thine CAonmnepxan8y’“sRciognhttrsacatnodpeirnatteiroenstssituoaftiootnh,epr lesausbejescete” “i1n.Tthhee
    
    financial report of this report.
    
    Project in gains and losses for the Company to achieve more than 10% of the total profit
    
    T□hAerveaailraebnleo con?trNacottparvoajielcatbslein gains and losses for the Company to achieve more than 10%
    
    of the total profit during the report period.
    
    ? Leasehold situation
    
    ?Available □Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    LOenasJeahnouladrysi1tusta, t2io0n17d,etshceripCtoiomnpany renewed the Space Lease Agreement with the controlling
    
    lsohcaarteehdoladte1r7C4hSanhgihyuuiyGaoroRupo.adT,hZehCifoumDpiasntryictl,eYasaendtaithCeitsyp.aTcehewriethnt1p5e1r9y6e.9a4r issqCuaNreY1m.4e6te4r5s
    
    Jmainluliaornyw1istth, 2a0r1e7n,tatlhepeCrioodmpoafn5y’yseasrusbofrrodminaJtaenuSaarlyes&1sMt, 2a0rk1e7tintog DCeoc.emofbeYr a3n1tsat,i 2C0h2a1n.gOyun
    
    PAigorneeeemrenWt winiethCthoemcpoanntryollLinimg isthedar.ehBorladnedr CShaalnegsyuDGepraorutpm,elnetasirnegnetwheedspatchee wSipthac4e25L5e2a.8s3e
    
    ssqquuaarree mmeetteerrss llooccaatteedd aatt 156JiDchaamnag RRooaadd,, ZZhhiiffuu DDiissttrriicctt,,YYaannttaaiiCCiittyy,anwdhitchhe aspreacaellwuinthde3r0t3h8e
    
    nwaimtheaorfenctoanltproelrliiondgosfh5aryeehaorlsdefrro. mThJeanreunatryof1stht,e2a0b1o7vteosDpaecceesmpbeerr y3e1astr, i2s0C21N.Y4.3935million
    
    OPanckJaugliyng1Cst,om20p1a7n,y tLhiims icteodm. pAacncyorsdiignngedto athihsocuosne-trleaacst,insgincceonJutrlayct1stw, i2t0h17Y,atnhtiasi cSomhepnamnya
    
    ltheaesaendnpuraolpreernttyotfoCYNaYnt1a,i62S6h,e8n8m0.aTPhaicskcaognitnrgacCt eoxmppiraensyoLniJmuinteed30fothr, 2a0b2u2s.iness purpose with
    
    For other leasehold situation, please refer to financial report.notes.
    
    Project in gains and losses for the Company to achieve more than 10% of the total profit
    
    T□hAerveaialraeblneo le?aseNhootldavpariolajbeclets in gains and losses for the Company to achieve more than
    
    (120)%Moafjtohregtuotaarlapnrtoefeit during the report period.
    
    ?Available □Not available
    
    ? Guarantee situation Unit: CNY’0000
    
                      ExternalguaranteeoftheCompanyanditssubsidiaries(excludingguaranteetosubsidiaries)
                  Disclosuredateof                                                               Whetheror
     GuarannatemeeobjectannoreulnacteedmentGuarantee  oAcccutruraelndcaete(doafteguAacrtaunatleeGuarantee  Guarantee  Whceotmheprleotrenotnotbelongto
                   aboutqguuoatarantee quota    ofagreement)    amount      type     Period   implementation  reglautaerda-nptaerety
    YanadntTaeicEhcnoonloomgiiccal                                    Mortgage;
    ZDoenveelMopamnaegnetment2016.12.22      34160     2016.12.21     34160     Pledge    10years       No         No
    Council.
    Tapoptarlovoefdthdeuerxintegrnthaelrgeupaorartnpteeeriqoudo(tAa1)           0 Trgeuopatoarlartnoptfeeterhiaeomdaco(tAuun2atl)deuxrteinrngatlhe    0
    aTpoptarlovoefdthbeyetxhteerennadlgoufatrhaenrteepeoqrutopteariod        34160 eBxatlearnncaelogufathraenatecetubaylthe
    (A3)                                             e(And4)ofthereportperiod                              34160
                                 Guarantee situationsbetweentheCompanyandsubsidiaries
     Guaranteeobject  Discloresularteeddateof  Guarantee  Actualdateof    Actual    Guarantee  Guarantee  Whetherornot  Whetheror
                                        occurrence (date  guarantee                       complete    notbelongtonameannouncementabout   quota
                   guaranteequota            ofagreement)    amount      type     Period   implementation  reglautaerda-nptaerety
    SMCaoalmerkspe&atninygof2016.10.31      10,000    2016.11.05     10,000    Joaisnstulriaabnicleity2years       No         Yes
    YantaiChangyu
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    CPioomnepearnWyLiniemited
    YPiaonnteaeirCWhainngeyu  2016.12.22      11,984    2016.12.21     11,984    Mortgage;   10years       No         Yes
    Company Limited                                                Pledge
    WYainnteaiRCehseaanrgcyhu                                         Joint
    aCnodmDpeavneyloLpimmietnedt2016.12.22      72,176    2016.12.21     72,176    aMslisoaubrrtiaglniatcgyee;10years       No         Yes
    KPtiylikLatdnoonEstate    2017.12.12      7100     2018.01.09      7100     alsisaJuobriianlinttyce1year       No         Yes
    Tsuobtaslidoifartiheesgduuarrinangtteheeqrueoptoartappperrioovdedto                    0 aTmotoaulnotfftohresaucbtusiadligaruiaersantee
    (B1)                                             d(Bur2i)ngthereportperiod                               7,100
    sTuobtaslidoifartiheesgbuyatrhaenteenedqoufotthaeaprepproorvtedto                89,276 Bguaalaranncteeeoffothresuabctsuidailariesby
    period (B3)                                        t(hBe4e)ndofthereportperiod                            89,276
                                       Guarantee situationsbetweensubsidiaries
                 Disclosuredateof                                                               Whether   or
    Gnaumareanteeobject  raenlnaoteudncementGquuoatraanteeAoccctuurarlednactee(odfategAucatruaanlteeGuarantee  Guarantee  cWohmepthleetreornot   not belong to
                 qabuooutatguarantee             ofagreement)   amount     type      Period     implementation  greulaarteadn-tepearty
    VHianceiednodsaMYarques2016.04.29       3,502     2015.10.08    3,502       Mortgage;  Longterm  No          No
    Del Atrio.SL
    ICnodmompaitnayWCihniele,2018.04.23       1,986     2018.04.20    1,986       Mortgage;  Longterm  No          No
    SpA
    Ttoostaulbosfidtihaerigeusadruarnitnegetqhueorteapaoprptrpoevreiodd                 0 Tamotoaulnotfftohresaucbtusiadligaruiaersantee
    (C1)                                             d(Cur2i)ngthereportperiod                               5,488
    tTpoeorstiauolbdosf(idCtih3aer)igeusabryanthteeeeqnudootafathpeprroevpeodrt             5,488 gt(BhCuaea4lare)annncdteeoeoffftohthreesruaebcptsouirdatilpareireisodby5,488
                            Totalguaranteeamount oftheCompany(Totalofabovethreemajoritems)
    Tduortainlgofthtehereappoprrtopveerdiogdu(arAan1t+eeBq1u+oCt1a)0 Tapmeortoiaouldno(tfdtAhuer2i+ancBgtu2tha+elCgr2eu)paorarnttee                           12,588
    Tbyottahleoefnthdeoafpthperorveepdorgtupaerrainotdeequota                 128,924 Bguaalaranncteeeofbtyhethaecetunadlofthe                           128,924
    (A3+B3+C3)                                     reportperiod(A4+B4+C4)
    TachceopurnotipnogrtfioorntohfeaCcotumaplatontya’lsgnueatraanssteeteamount(A4+B4+C4)                                                    13.42%
    Among :
    pTahretiaems(ouDn)tofguaranteeforshareholders,actualcontrollersandtheirrelated 0
    rTahtieoaimsmouonrteotfhadneb7t0g%uadriarnetcetelyfoorrtihnedigruecatrlayn(teeEd)objectswhoseasset-liability 0
    Total amountofguaranteeofthepartthatexceeds50%ofnetassets(F)   0
    Total amountoftheabove-mentionedthreeitems(D+E+F)           0
    Explanation forundueguaranteesthathavehappenedwarrantyliabilityor   No
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    may takejointpaybackliabilitiesduringthereportperiod(ifhave)
    Explanation forviolatingdueprocesstoprovideexternalguarantee(ifhave) No
    
    
    NSpoe.cific explanation on adopting complex guarantee type
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    ? Illegal external guarantee
    
    □Available ?Not available
    
    There is no illegal guarantee situation during the report period.
    
    (3) Entrusting others to manage cash assets
    
    ? Financial management entrustment
    
    □Available ?Not available
    
    There is no financial management entrustment during the report period.
    
    ? Loan entrustment
    
    □Available ?Not available
    
    There is no loan entrustment during the report period.
    
    (4) Other important contracts
    
    □Available ?Not available
    
    There are no other important contracts during the report period.
    
    18. Social Responsibility
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    (1) Social responsibility performance
    
    Please refer to 2018 Annual Social Responsibility Report disclosed on Securities Times, China Securities Newspaper and www.cninfo.com.cn by
    
    the Company.
    
    (2) Targeted poverty alleviation social responsibility performance
    
    ① Targeted poverty plan
    
    The Company has reached the mutual agreement with Zhuqiao Town Party Committee Government and Da Langya Village Committee to
    
    establish professional grape cooperative. It plans to help to conduct the construction of 100 mu of vineyard per year from 2019 to 2021 with a
    
    total area of 300 m and also to sign grape purchase contract in order to help local villagers to get rid of poverty and become better off.
    
    ② Summary of annual targeted poverty
    
    Related leaders of the Company visited the village three times, held meetings three times and assisted to drill three wells.
    
    ③ Targeted poverty effectiveness
    
    The Company has completed initial preparation work of targeted poverty effectiveness for Da Langya Village.
    
    ④ Subsequent targeted poverty plan
    
    N(3o) Environmental protection related situation
    
    Whether the listed company and its subsidiaries belong to major polluters published by the environmental protection department
    
    □ThAe vmaialianbllye poll?utNanott oavf atihlaebCleompany is the sewage generated in the productive process, which has been discharged with reached standards.
    
    T19h.eOretihsenroMpaojllourtiiosnsuseitsuation occurred during this report period.
    
    □ThAerveaailraebnleo oth?erNmoatjaovraiislsaubeles need to be explained during the report period.
    
    20. Major issues of Company’s subsidiaries
    
    □Available ?Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    VI. Changes in Shares and the Shareholders’ Situation
    
    1. Changes in shares
    
    (1) Changes in shares
    
    Unit: share
    
                            Amountbeforethischange                           TransfCehrange(+,-)             Amountafterthischange
                            Amount           %PercentageAnelwlotbDoinsturisbsuhtaereocathpeitraltoothers Subtotal        Amount      Percentage
                                                        share                 schaparietal                                  %
    1、Unrestricted shares             685,464,000  100.00%                                                       685,464,000  100.00%
    (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%
    2、Total shares                  685,464,000  100.00%                                                       685,464,000  100.00%
    
    
    Cause of share change
    
    □Available ?Not available
    
    Approval of share change
    
    □Available ?Not available
    
    Transfer of changed shares
    
    □Available ?Not available
    
    Implementation progress of share buy-back
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    □Available ?Not available
    
    Implementation progress of reducing holding repurchased share through the way of centralized bidding
    
    □Available ?Not available
    
    The influence of share change on the financial indicators such as basic earnings per share, diluted earnings per share of the latest year and the
    
    latest period, net asset per share belonging to the Company’s common shareholders, etc.
    
    □Available ?Not available
    
    Other contents the Company thinks necessary or securities regulatory departments ask to make public.
    
    □Available ?Not available
    
    (2) Changes in restricted shares
    
    □Available ?Not available
    
    2. Securities issuance and listing situation
    
    (1) Securities issuance (exclude preferred share) during report period
    
    □Available ?Not available
    
    (2) Explanation of change in Company’s total shares and shareholding structure and change in Company’s assets and liability structure
    
    □Available ?Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    (3) Current employee shares
    
    □Available ?Not available
    
    3. Situation for shareholders and the actual controllers
    
    (1) The number of shareholders of the Company and the shareholdings
    
    Unit:share
    
                                Total     number      of         Total number of preferred          Total number of preferred
                                shareholders by the end of         shareholder recovering            shareholder recovering
    Total shareholders in42,980  last  month  before  the45,104   voting power by the end 0       voting power by the end of  0
    the report period             disclosure   day   of   the          ofreport period (if have)        last month before the
                                annualreport                       (see note 8)                    disclosure day of the annual
                                                                                                 report (if have) (see note 8)
                                  Shareholdersholding more than 5% or the top 10 shareholders holding situation
                                                                                    Changes    Number             Pledged or frozen
                                                                                    during  theof       Number  of
    Name of Shareholders Character of shareholders    Percentage  Shares  held  until  the(%)end of the report period            restricte unrestricted  SharereportAmount
                                                                                    period      d       shares      status
                                                                                               shares
    YANTAI            Domestic   non-state-owned
    CHANGYU GROUPlegal person                    50.40%           345,473,856                     345,473,856                 0
    CO. LTD.
    GAOLING          Foreign legal person              3.08%            21,090,219                      21,090,219                 0
    FUND,L.P.
    CHINA             State-owned legal person          2.25%            15,440,794                      15,440,794                 0
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    SECURITIES
    FINANCE CORP
    BBH    BOS    S/A
    FIDELITY   FD   -Foreign legal person              2.22%            15,241,826                      15,241,826                 0
    CHINA FOCUS FD
    SHENWAN         Foreign legal person
    HONGYUAN                                       1.22%             8,347,663                       8,347,663                 0
    SECURITIES(HONG
    KONG) LIMITED
    FIDELITY
    PURITAN TRUST:
    FIDELITY SERIES  Foreign legal person              0.89%             6,100,762                       6,100,762                 0
    INTRINSIC
    OPPORTUNITIES
    FUND
    TAIKANG LIFE
    INSURANCE
    LIMITED
    LIABILITY         Domestic non-state-owned        0.75%             5,159,757                       5,159,757                 0
    COMPANY-- UNIT  legal person
    –LINKED--
    INDUSTRY
    CONFIGURATION
    GUOTAI JUNAN
    SECURITIES(HONG Foreign legal person              0.74%             5,043,507                       5,043,507                 0
    KONG) LIMITED
    CENTRAL HUIJIN  State-owned legal person          0.69%             4,761,200                       4,761,200                 0
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    ASSET
    MANAGEMENT
    LIMITED
    TAIKANG LIFE
    INSURANCE
    LIMITED
    LIABILITY         Domestic non-state-owned        0.69%             4,746,954                       4,746,954                 0
    COMPANY-DIVIDE legal person
    ND-PERSONAL
    DIVIDEND-019L-FH
    002 SHEN
    Strategic investors or legal result of the placement of newNo
    shares to become a top 10 shareholders(if have)(see note 3)
                                                         Among the top 10 shareholders, there is associated relationship between Taikang Life
                                                         InsuranceLimited Liability Company- Unit-linked- Industry Configuration and Taikang
    The  explanation  for  the  associated  relationship  andLife  Insurance Limited Liability Company- Dividend- Personal dividend-019L-FH002
    accordant action                                      Shen. Yantai Changyu Group Company Limited has no associated relationship or
                                                         accordant action relationship with the other 9 listed shareholders, and the relationship
                                                         amongthe other shareholders is unknown.
                                                 The top 10 shareholders with unrestricted shares
                                                                            Number   of  unrestrictedType of share
    Name of Shareholders                                                     shares held until the end ofType of share         Amount
                                                                            the year
    YANTAI CHANGYU GROUP CO. LTD.                                                345,473,856 A                       345,473,856
    GAOLING FUND,L.P.                                                                  21,090,219 B                        21,090,219
    CHINA SECURITIES FINANCE CORP                                                  15,440,794 A                        15,440,794
    BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                        15,241,826 B                        15,241,826
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    SHENWAN HONGYUAN SECURITIES(HONGKONG) LIMITED                           8,347,663 B                         8,347,663
    FIDELITY PURITAN TRUST: FIDELITY SERIES INTRINSIC                              6,100,762 B                         6,100,762
    OPPORTUNITIES FUND
    TAIKANG LIFE INSURANCE LIMITED LIABILITY COMPANY-- UNIT                    5,159,757 A                         5,159,757
    –LINKED-- INDUSTRY CONFIGURATION
    GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED                                   5,043,507 B                         5,043,507
    CENTRAL HUIJIN ASSET MANAGEMENT LIMITED                                     4,761,200 A                         4,761,200
    TAIKANG LIFE INSURANCE LIMITED LIABILITY                                      4,746,954 A                         4,746,954
    COMPANY-DIVIDEND-PERSONAL DIVIDEND-019L-FH002 SHEN
                                                                            Among the top 10 shareholders, there is the associated relationship
                                                                            between Taikang Life Insurance Limited Liability Company-
    The explanation for the associated relationship and accordant action of the top 10Unit-linked- Industry Configuration and Taikang Life Insurance
    shareholders  with  unrestricted  shares,  the  the  associated  relationship  andLimited Liability Company- Dividend- Personal
    accordant action between the top 10 shareholders with unrestricted shares and thedividend-019L-FH002 Shen. Yantai Changyu Group Company
    top 10 shareholders                                                       Limited has no associated relationship or accordant action
                                                                            relationship with the other 9 listed shareholders, and the relationship
                                                                            among the other shareholders is unknown.
    Explanation for the top 10 shareholders who involved in financing activities andThe top 10 shareholders do not involve in financing activities and
    stock trading business (if have)(see note 4)                                   stock trade business.
    
    
    Whether or not the Company’s top 10 common shareholders and shareholders with unrestricted shares take agreed repurchase trading during the
    
    report period
    
    □Yes ?No
    
    There is no agreed repurchase trading taken by the Company’s top 10 common shareholders and shareholders with unrestricted shares during the
    
    report period.
    
    (2) Situation for the controlling shareholders of the Company
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Property of holding shareholders: Property of holding main body undefined
    
    Type of holding shareholders: Legal representative
    
    Name of controlling shareholder             Legal          Establishment Organization     Main business
                                             representative   date         code
                                                                                         Production and distribution of wine, healthy
                                             Zhou                       91370600265645 liquor, distilled liquor and non-alcohol
    Yantai Changyu Group Co. Ltd.             Hongjiang      1997.04.27   8244            beverages, planting of agricultural products
                                                                                         and export business under the scope of
                                                                                         permission.
    Equity situation for the other domestic listed
    companies controlled or shared by the        No.
    controlling shareholders during the report
    period
    
    
    Changes in the controlling shareholder during the report period
    
    □Available ?Not available
    
    There are no changes in the controlling shareholder during the report period.
    
    (3) Situation for the actual controllers of the Company
    
    Property of actual controllers: domestic other institutions; foreign other institutions
    
    Type of actual controllers: Legal representative
    
    Name      of     actualLegal        Establishment Organization  Main business
    controllers              representative date         code
    Yantai Yuhua InvestmentJiang Hua    2004.10.28   76779294-7 Under state permission, property investment, tenancy of machine and facility,
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    & Development Co. Ltd                                         wholesale and retail of construction material, chemical products (chemical
                                                                   hazard products  excluded),  hardware  and  electronical  products,  grape
                                                                   plantation.
                                                                   Directly or indirectly conduct the production and distribution of food
    ILLVA Saronno HoldingAugusto      1984.07.25   -           products (alcoholic products included) as well as industrial, commercial,
    Spa                    Reina                                  financial and serdeputy activities of any other kinds through joint-stock
                                                                   companiesand organizations
                                                                   International Finance Corporation is one of the members of World Bank,
                                                                   mainly dedicated to investment in private sectors of developing countries
    International     FinancePhilippe   LE                           while  providing  technical  support  and  consultation  serdeputy.  The
    Corporation             HOUEROU  1956.07.25   -           corporation is a multilateral financial institution that ranks first in the world
                                                                   in terms of providing capital stock and loans to developing countries. Its
                                                                   purpose is  to  promote  sustainable  investments  of  private  sectors  of
                                                                   developingcountries in order to alleviate poverty and improve people’s life.
                                                                   Operatingmanagement of state-owned property right (stock right) authorized
                                                                   by State-owned Assets Supervision and Administration Commission of
                                                                   Yantai  Municipal  Government;  Financing,  investment  and  operating
                                                                   management of government projects, such as strategic investment and
                                                                   industrial investment and so on; Capital operation (including acquisition,
    Yantai          Guofeng                                        reintegration and transfer, etc) of state-owned property right and state-owned
    Investment Holdings Co.,Rong Feng   2009.02.12   00426068-6   stock right within the scope of authorization; Venture capital investment
    Ltd                                                            business; Agency of venture capital investment business of other venture
                                                                   investment enterprises or individuals; Participation in the establishment of
                                                                   venture capital  investment  enterprises  and  venture  capital  investment
                                                                   management consultant institutions; Investment and financing serdeputy
                                                                   business; Investment and financing consultant business; Other business
                                                                   authorized  by  State-owned  Assets  Supervision  and  Administration
                                                                   Commission  of  Yantai  Municipal  Government.(Projects  need  to  be
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                                                   authorizedin accordance with the law could carry out business activities only
                                                                   afterthe approval of relevant departments )
    Equity  situation for the
    other   domestic   listed
    companies controlled byNo
    the   actual   controller
    during the report period
    
    
    Changes of the actual controllers during the report period
    
    □Available ?Not available
    
    There are no changes in actual controllers during the report period.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Introduction for property right and control relations between the Company and its actual controllers
    
    Actual controller controls the Company through a trust or other asset management ways
    
    □Available ?Not available
    
    (4) Other institutional shareholders holding more than 10% shares
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    □Available ?Not available
    
    (5) Shares reduction situations of holding shareholders, actual controllers, restructuring side and other commitment subjects
    
    □Available ?Not available
    
    VII. Related Situation of Preferred Shares
    
    □Available ?Not available
    
    There are no preferred shares during the report period.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    VIII. Situation for Directors, Supervisors, Senior Executives and Staff
    
    1. Changes in shareholdings of directors, supervisors and senior executives
    
                                                                                Shares   Increased Decreased
                                                Gen      Beginning   Ending   held at the  shares    shares     Other   Shares held at
        Name           Post           Status     der Age date of the date of the beginning   during  during the changes of the end of the
                                                             post       post      of the      the     period  shares held    period
                                                                                 period    period
    Zhou         Chairman         presentHongjiangM   54  2002.05.20 2019.05.27         0        0         0         0             0incumbent
    Sun Liqiang   Director           pinrceusemnbtentM   71  1997.09.18 2019.05.27         0        0         0         0             0
    Leng Bin     Director           pinrceusemnbtentM   56  2000.08.22 2019.05.27         0        0         0         0             0
    Sun Jian      General manager   present      M   52  2006.03.22 2019.05.27         0        0         0         0             0
                  Directorand       incumbent
    Qu Weimin   BSeocarredtaorfyDtoirtehcetorsipnrceusemnbtentM   61  1997.09.18 2019.05.27         0        0         0         0             0
    Zhang Ming   Director           pinrceusemnbtentM   45  2016.05.26 2019.05.27         0        0         0         0             0
    Augusto      Director           presentReina M   78  2006.12.07 2019.05.27         0        0         0         0             0incumbent
    MAladriznooratiDirector           present      M   66  2006.12.07 2019.05.27         0        0         0         0             0
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                   incumbent
    AAnptpoingnioaniDirector           pinrceusemnbtentM   80  2006.12.07 2019.05.27         0        0         0         0             0
    Wei Anning   Director           pinrceusemnbtentM   55  2017.06.15 2019.05.27         0        0         0         0             0
    ZWhaunqguan dInirdeecptoenrdentipnrceusemnbtentM   53  2014.05.23 2019.05.27         0        0         0         0             0
    Wang Shigang Independent       PresentdirectorM   53  2011.05.10 2019.05.27         0        0         0         0             0incumbent
    Luo Fei       Independent       PresentdirectorM   66  2016.09.23 2019.05.27         0        0         0         0             0incumbent
    Liu Yan      Independent       PresentdirectorF   45  2016.09.23 2019.05.27         0        0         0         0             0incumbent
    Guo Guoqing Independent       PresentdirectorM   56  2018.12.04 2019.05.27         0        0         0         0             0incumbent
    QKoinnggkun CBohaairrdmoafnto the    present      M   46  2013.05.14. 2019.05.27         0        0         0         0             0
                  Supervisors       incumbent
    Zhang Lanlan Supervisor        ipnrceusemnbtentF   49  2013.05.14. 2019.05.27         0        0         0         0             0
    Liu Zhijun    Supervisor        pinrceusemnbtentM   38  2016.05.26 2019.05.27         0        0         0         0             0
    Yang Ming   Deputy general    Leaving  themanagerM   60  1998.08.12 2018.02.28         0        0         0         0             0post
    Li Jiming     Chief engineer     ipnrceusemnbtentM   52  2001.09.14 2019.05.27         0        0         0         0             0
    Jiang Hua     Deputy general    presentmanagerM   55  2001.09.14 2019.05.27         0        0         0         0             0incumbent
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Peng Bin     Deputy general    presentmanagerM   52  2018.01.10 2019.05.27         0        0         0         0             0incumbent
    Jiang Jianxun Chief financial     presentofficer M   52  2018.01.10 2019.05.27         0        0         0         0             0incumbent
    Pan Jianfu    General manager   presentassistantM   43   2018.04.19 2019.05.27         0        0         0         0             0incumbent
    Liu Shilu     General manager   presentassistantM   44   2018.04.19 2019.05.27         0        0         0         0             0incumbent
    Xiao Zhenbo  General manager   presentassistantM   42   2018.04.19 2019.05.27         0        0         0         0             0incumbent
    Total                 --              --       --   --      --         --             0        0         0         0             0
    
    
    2. Changes in the Company’s directors, supeYravnitasioCrhsanagnydu PsieonneieorrWeinxeeCcou. tLitvde. 2s018 Annual Report
    
    ?Available □Not available
    
             Name           Position             Type                 Date             Reason
     Sun Liqiang            Chairman   Leaving the post             2017.12.08      Vasocluhnaitremeratnoarnedsignno
                                                                                  lcohnagiremrasenr;vceuarrsently
                                                                                  tsheervCeoamspdairneyctorof
     Zhou Hongjiang         CDhepaiurtmyanLeaving the post             2018.01.10      aVsodluenptueteyrcthoariermsigann,
                                                                                  dnoepluotnygcehrasierrmveanasand
                                                                                  cbheaeilremcatend;causrrently
                                                                                  tsheervCeoamspchanaiyrmanof
     Zhou Hongjiang         MGeanneargaelrDismission                 2018.01.10      Vasogluennteerearltmoarneasgigenr
                                                                                  aasndgennoelroanlgmearnsaegrvere;
                                                                                  cchuarriermntalynsoefrvtheeas
                                                                                  Company
     Zhou Hongjiang         Chairman   Adipsmpoiisnstiomnentand            2018.01.10      Bcheaeirlmecatnedoafsthe
                                                                                  Company
     Leng Bin               DgeenpeurtaylDismission                 2018.01.10      Vasodluenptueteyrgtoenreersaigln
                            manager                                               mloanngaegresreravnedanso
                                                                                  dmeapnuatgyegr;encuerrarelntly
                                                                                  tsheervCeoamspdairneyctorof
     Sun Jian                gDeenpeurtaylAdipsmpoiisnstiomnentand            2018.01.10      Bgeenaepraplominatendagaesrand
                            manager                                               dpoissmtoisfsdedepfurotymthe
                                                                                  gcuernreernatllymsaenravgeear;s
                                                                                  tgheeneCroamlmpaannyagerof
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     Peng Bin               DgeenpeurtaylAdipsmpoiisnstiomnentand            2018.01.10      dBeepauptypogiennteedraals
                            manager                                               mcuarnreangtelryasnedrveas
                                                                                  dmeapnuatgyegreonfetrhael
                                                                                  Company
     Jiang Jianxun           CfinhaienfcialdAipsmpoiisnstiomnentand            2018.01.10      cBheieafpfpionianntceidalas
                            officer                                                osefrfviceerasancdhiceufrrently
                                                                                  ffiinnaanncciiaallmofafincaegrearnodf
                                                                                  the Company
     Guo Guoqing           Independe  Appointment and                           Be appointed asntdirector   dismission                  2018.12.04      independent director.
    
    
    3. Situation for work experience
    
    Tdihreecptororsfe, sssuipoenravlisboarcskagnrodusnedn,iomraeixnewcuotrikveesxperiences and present positions of the Company’s
    
    (1) Members of Board of Directors
    
    rMepr.reZsehnotuativHeonogfjiatnhge, 1m2tahleN, a5t4io,nCalhiPneeosep,lew’sithCodnogcrteosrs,dedgerpeuet,y sgenenioerrael nmgianneaegr,erwoasf tthhee
    
    C20o1m8p, ahney saenrdvegdenaesradlimrecatnoarg,edreopfutthyecShaaliermCaonmapnadnyg. eFnreormal 2m0athnMagaeyr, o2f00th2etoC1o0mthpJaannyuaarnyd,
    
    NcoanticounrarelnPtleyopdleep’sutyCocnhgariersms,anchoafirmCahnanogfyutheGrCooump.paHney, ischtahiremraenpraensdentpaatrivtye soefcrethtaery13othf
    
    CMhra. nSgyuun GLrioquiapnngo,wm. ale, 71, Chinese, with college degree, senior economist, was the
    
    1re0pthreJsaennutaatriyv,e2o0f1t8h,eh1e0stheravnedd1a1sthcNhaatiiromnaanl Poefotphlee’CsoCmopnagnreys,sa.nFdrocmon1c8utrhreSnetplytemchbaeirr,m1a9n97antdo
    
    gMern.eLraelnmgaBniang,emr oafleC, h5a6n, gCyhuinGersoeu, pw. iHthemisadsitreercdtoergroefet,hseeCnioomr pacacnoyunnotawn.t, was deputy section
    
    cmhainefagaenrdosfetchteioCnocmhipeafnoyffrYoamnta1i5tAh uJudnite,B2u0r0ea0ut,oh1e0stherJvaenduaarsy,d2ir0e1c8to. rHaendis ddeirpeucttyorgoenfetrhael
    
    GCoromuppannoyw, a.nd concurrently deputy party secretary, director and general manager of Changyu
    
    MYarn. tQaiuCWomeimmiisns,iomnalfeo,r 6R1e,sCtrhuicntuesrien,gbathceheElocronoofmenicgiSnyesetreinmg,andseRnieosreaerccohnoOmffiisct,ewoof rYkeadntaati
    
    Ganodveernntmerpenritseanodpheraastimonoraentdhamna2n0agyeemaresnot,fheexpwearisendceepuintythgeenaesrpaelcmt oafnamgaecrroofectohneoCmoimc pstaundyy.
    
    Hsinechea1s8stehrSveepdteams dbierre,c1to9r97a.nd concurrently secretary to the board of directors of the Company
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YMarn. tZaihaSnygntMheitnigc, Lmeaalteh,e4r 5G, eCnheirnaelseF,acwtoitrhy,bapclhanelosrpedceigarlieset, osefnbioursiennegssinedeerp,awrtmasenptl,andneepruotyf
    
    soefcptiloann cahnidefsotaftipsltaicn saencdtisotnatiisntiacssseectstiomnaninagaesmseetsntmdaenpaagretmmeenntt idnepYaartnmtaeinWt aanndhsueactSioynntchheiteicf
    
    LLteda.thaenrdGcroonucpuCrroen.,tlLytdd,irreiscktocroanntrdoldseepcuttiyongcehnieerfalofmYananagtaeirGoufoYfeanngtaIinGveusotmyuenFtinHaonlcdeinLgeCasoe.,
    
    CTeoc.,hLnotdlo, gdyepGurtyougpenCeora.,lLmtda.naagnedrgaenndersaelcmreatanraygteor tohfeYbaonatradi oSftadtier-eocwtonresdoAf WsseatnMhuaanEagffeimcieenntt
    
    CCoo.m, pLatndy.,. chairman of Yantai Guofeng Investment Holding Co., Ltd. He is director of the
    
    cMorm. pAaungieusstioncRluediinnag, Imllavlae,Sa7r8o,nIntaoliHano,ldiisngnoSwpAsearnvdinIgllvaas Scahrioenf neoxeIncuvteisvtemeonffticSeRrLo,fmseemvebrearl
    
    oanfdthEexbpooarrtdAosfsodcirieactitoonrs),odfirBeacrtobreroinfiIsStpitau,todiDreecltoLrioqfuoFreede(Wrviinnie (RIteaslieaanrcAhlcInoshtoitlusteP)r,oddiurecctitoonr
    
    GofroAusps.oHvienhi a(sSibceielyn VdiirneicctuolrtuorfethaendCoWmipnaenPyrsoidnucceti2o7nthAAspsroilc,i2at0i0o6n.) and director of Changyu
    
    IMllvr.aASladrionnonMo aHrozoldriantig, SmpaAle,a6n6d,dIitraelciatonr, wofitthhebabcohaerldorofdedgirreecet,oirssnoofwsotmheegbernanercahlems aunnadgeerrthoef
    
    gsirnocuep2c7othmApparniyl, 2a0n0d6t.he director of Changyu Group. He has been director of the Company
    
    MBurs.iAnenstsonCiooAnspupltiagtnioanni, Cmoamlem, 8it0te, eI,talciahnie,fwiotfh bParcohfeeslosirodneaglreEet,hiiscsdepCuotmy mchiattierem,anteoacfhIetarliaonf
    
    Evoccoantoiomniacl taranidninCgomcomuresrecioafl ICndoumstmriiatlteaendofCothmempeurcbilailcCuonnisvuelrtsaittiyon“CGo.mDmiAttenen,umnzeimo”bearnodf
    
    coofnthcuerbreonatrldyosferdviirnegctoasrsmoefmsebveerroalf cthoembpoaanridesoufnddireercItlolrvsaoGfrdoiuffperaenndt tchoemdpiarenciteosraonfdCmheamngbyeur
    
    GMrro.upW. ei Anning, male, Chinese, 55, with doctor degree, ever served as agricultural
    
    ethceonRoambiosbt aonfkt,heChWinoarldCEBOanko,f dthireecFtoorrtoisf NBaonrtkh BEealsgtiAumsi,a eFxoeocdut&iveAdgeripbuutsyinpersessiRdeesnetaorcfhthoef
    
    NUnewitedHoRpueraGl rCouopmm(SeircchiualanB),anpkresCidoe.,ntLotdf, Sdhiraencdtoonr gofLiXuhinejiaGnrgouKp,undtiariecGtorrouopf HCoan.,gzLhtdo.u,
    
    dchevaierlmopamn eonftthsteraStehgayndaonndgeCqhuiintywihnivzeGstrmoeunpt.sH. Ne oiswg, ohoedisatsceorvrpinograates gexoevceurntiavneced,ireenctteorrprainsde
    
    goefnbeortahl mNainngaxgiear GofuSevhaanFguhnadi GMuaenvaagFeumnedntMCaon.a,gLemtdeannt dCoN.,inLgtbdoCGo.u,eLvtad,FeuxnedcuMtiavneadgiermecetonrt
    
    FCoor.t,uLnted,SiGndFeupnenddMenatndaigreemctoenr toCf oD.a, cLhtadn., Fdoiroedct(oAr soifa)JiCanog.,sLutdF,inOarniceinatl SleeacsuirnigtieCsoC.,oL.,tdL.tdHaenids
    
    Mserrv. iWngaansgdSirheicgtaonrgo,fmthaeleC,o5m3p, aCnhyi.nese, MBA and Certified Public Accountant, is now the
    
    bproeavridoucshlyairsmearvnedofasShiannddeopnengdeTnitandhiernecgtxoirn oCfotnhsetruCcotimonpaCnyo.stHCeoancstusltaatsiotnheCion.deLptden..deHnet
    
    Mdirre.cWtoarnaggaZinhufrqouman1,4mthaMlea, y5,32,0C1h3i.nese, doctor of management (accountancy), first batch of
    
    national accounting academic leading personals of Financial Department, the entrant of
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    aSchcaonudnotnagntprmoavsintecre,cGulotivveartniomnenptroSjpeecctiaolfAFllionwanacnicael eDxeppeartr,tmacetnetd, aosutisntadnedpienngdentetacdhireerctoorf
    
    forfomthe13Oth cMeaany, U20n1iv0etrosi1ty2thoMf aCyh,i2n0a13a.sNwoewllhaesisinthdeepperonfdeesnstordairnedcttohre doofcttohrealssoumpeervliissoterds
    
    icnodmeppaenndieesntwdhiriecchtocrooufldthebeCoexmepmapnlyifaiegdainasfroQmin2g3dradoMDayo,u2b0le1S4t.ar Co., Ltd. He acts as the
    
    Mdorc.toLruaol Fseuip,emrvailseo,r6s,6,GCohvinerensme,ewnitthSdpoecctioalr dAelglorewe,anvciseitienxgpsecrth,olfairrsot fbUatncihverosfitytraonfsT-coernotnutroy,
    
    sduebanjecotf (aacccaoduenmtiincg) lceoaldleingge ipnerZshoonnalgsnoanf FUinnaivnecrisailtyDoefpaErctmoneonmt.iHcseasnudcctheessdiveealnyosferavcecdouanstitnhge
    
    cacoclloeugnetiinngZ, hcoonstgnacacnoUunntiivnegr,siftiynaonfcEiaclomnoamnaigcsemanedntL, aawnd. Hsoeofno.cuHseeshoasn wthoerksteuddyinocfofminpaannciieasl
    
    ifnodrempeanndyeynetadrisreacntodrhoafsthperaCctoimcaplawnyo.rking experience with companies. Now he is serving as
    
    Mlaws.yLeriuinY2a0n0, 5fe.mHaelre,m4a5in, Cphraincetiscee, awrietahsminacsltuedredeisgsrueien,gwaansdhloisntoinregdoafsdnoamtieosntiacl oanudtstfaonrdeiinggn
    
    sLtaowckFs,irmmeargnedrsaenrvdinagcqausisinitdioenpeannddenftordeiirgenctoinrvoefstthmeeCnto.mSphaennyo.w is the partner of Tian Yuan
    
    MHer.sGeruvoedGausoaqicnogm, mmiatltee,e5m6e,mCbheinreosfe,thwei7ntnheAr lol-fCthhienaspYecoiuatlhaFlleodwearantcioeno,fctohmemSittatteeeCmoeumnbcielr.
    
    Cofonthfeere8nthc,e,9trheparnedse1n0tathtivNeatoiofnthale C11otmh NmaitttieoenaolfPtehoeplCe'hsinCeosnegPreesosp, ldee'spuPtoylidtiecaanl oCfoSnscuhlotaotlivoef
    
    BMuusniniceispsalAdPmeoipnliest'sratGioonveorfnRmeennmt ionfUGnuivaenrgsditoynogf PCrhoivnian,cdee,piuntdyespeecnrdeetanrty dgierencetroarl ooffZChhuihnaai
    
    NEvaetirobnraiglhNt aBtuarnakl,SecvieanluceatiFoonunedxapteiortn ooff tChheinDa,epaasrstomcieantte oedf itMoranoafgtehmeeJnoturSncailenocfeCohfinethsee
    
    Mdoacrtkoirnagl saunpderinvdiseopreantdethnet dSicrhecotoolrooffBCuhsiinnae-sTsinofGRroeunpm.iHneUcnuirvreernstiltyy soefrvCehsinasa,adpirreocfteosrsoorfatnhde
    
    CBuhsininaesMs aHrkiesttionrgy RSeosceiaertyc,h dCireenctteorr ooffRtehnemBinraUndnivPerrosfietyss, iodneaplutCyopmremsiidtteenet ooff tthhee CChhiinnaa
    
    BUunsivineerssistyHiosftorOyxfSoorcdi,etsyi,dein-btearrnadtioocntoalrarlesteuatorcrhearndofpCroofrepsosorarteofRePpauntyaatipoinwaCtenIntesrtitoufteThoef
    
    GMraeneaRgeemaleEnst,tacteonasnudltianndteopfenCdhenintadiUrencitvoerrosiftyMMinjairakkeetfiennggRInefsoeramrcahtioAnssToeccihatnioolno,gdyirCeoc.t,oLr todf,
    
    NJoainntYSuteocFkunCdo,.,ZhLetjdi.anagndFeLngivrzuonnBPiohtaercmhaCceou.,tiLcatdl ,GVraotuspLIiqnuc.orHCehaseinrvSestoraesMinadneapgeenmdeenntt
    
    d(2ir)eMctoermobfetrhseoCfobmopaarndyo.f supervisors
    
    pMror.dKucotniognQdinegpkarutnm,emnat lein, 4t6h,eChheianletshey, MliqBuAoranbdraenccohnoomffiicste,, scelrevrekd aansdthdeespeucttyiondimreecmtobreranodf
    
    Mdirse.ctoZrhoafnggenLeraanllamna,nafgeemraolfef,ice4.9, with bachelor degree and economist, served as
    
    dSehpeuntyo-wmiasndaigreerctoofr othfeboCaordmopfandyir’esctiomrps’orotf/feixcpeo. rt company, manager of import department.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    EMcro.nLoimuyZahnijdunT,ramdaeleB,u3r8e,auChininLeosen,gwkoituhebcaocnhoemloirc ddeegvreeleo,pmwoenrktezdonine,fsoerrevigedn afusnndewsescsteiocntioonf
    
    pmreompabgearndoafanpdrompaagssanwdoarkdseepcatirotmn,emnteminberLoofnpglkaonuninMg usnecictiiopna,l deCpoumtymdititreeec,tormmemembberer ooff
    
    pderopgurtaymcmhiienfgofdpevroeglorapmmmenitnganddeveenloteprmpreisnet sdeicsttiroibnu. tHioennsoewctiiosns,updeerpvuitsyordoirfetchteorCmomempabneyr. and
    
    M(3)r.OStuhnerJisaenn,iomraelex,ec5u2t,iCvehsinese, MBA, served as deputy general manager of the Company
    
    afrnodmdi2r2ecndtoMr oarfcCh,ha2n0g0y6utoGr1o0uthp.January, 2018. He serves as general manager of the Company
    
    sMerrv. inLgi Jaismcinhgie,fmeanlgei,ne5e2r, oCfhitnheeseC,owmipthanydocsitnocred1eg4rtheeS, eapptepmlicbaetri,on20r0e1seaarncdhecro, nhcausrrebnetelyn
    
    Mdirre.cJtioarnogfHCuhaa,nmgyauleG, r5o5u,pC. hinese, with master degree, senior engineer, has been serving as
    
    Mderp.uPtyenggenBeirna,lmmaalne,ag5e2r, oMfBthAe,Cseonmiopraneyngsiinneceer,14evtheSresputcecmesbseirv,e2ly00s1e.rved as deputy director of
    
    Ywianneta-bi leCnhdainnggywuorGksrhooupp aCndomdpiraencytorLoimf witeinde, -ssteocrtaigoen wcohrikesfhoopf oTfeBchrannicdayl CTormanpsafnoyrmuantdioenr
    
    gDeenpearratlmmenatnaagnedr omfinYiastnetraioCf hIannvgeysutmGenrotuapndCoDmepvaenloypLmimenitteDd,egpeanrtemraelnmt aansawgeerllasassisdtaenptuotyf
    
    YthaenCtaoimCphaannyg.yu Pioneer Wine Company Limited. He serves as deputy general manager of
    
    Mther.CJioamngpaJniaynfxruonm, m20atlhe,M5a2y,,C2h0i0n2esteo, 1M0BthAJaannudarayc,2c0o1u8nt.aHnte, sseerrvveesd aass cFhinieafnfciinaalnMciaanl aogfefircoerf
    
    of the Company.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Post in the shareholder’s company
    
    ?Available □Not available
    
                                                                                  Beginningdate  Ending date of      Paid by
                 Name                 Shareholder’s Company           Post         of the post       the post      shareholder’s
        companyor not
    Sun Liqiang                    Yantai Changyu Group Co. Ltd. Chairman andgeneralmanager  2013.10.08     2018.01.10     No
    Zhou Hongjiang                 Yantai Changyu Group Co. Ltd. Deputy chairman 2013.10.08     2018.01.10     No
    Zhou Hongjiang                 Yantai Changyu Group Co. Ltd. Chairman        2018.01.10     2022.01.10     No
    Leng Bin                       Yantai Changyu Group Co. Ltd. Director andgeneralmanager  2018.01.10     2022.01.10     Yes
    Li Jiming                       Yantai Changyu Group Co. Ltd. Director         2013.10.08     2022.01.10     No
    Sun Jian                        Yantai Changyu Group Co. Ltd. Director         2013.10.08     2022.01.10     No
    Zhang Ming                    Yantai Changyu Group Co. Ltd. Director         2013.10.08     2018.11.15     No
    Augusto Reina                  Yantai Changyu Group Co. Ltd. Director         2013.10.08     2022.01.10     No
    Aldino Marzorati                Yantai Changyu Group Co. Ltd. Director         2013.10.08     2022.01.10     No
    Antonio Appignani              Yantai Changyu Group Co. Ltd. Director         2013.10.08     2022.01.10     No
    Wei Anning                    Yantai Changyu Group Co. Ltd. Director         2017.04.18     2022.01.10     No
    Explanation for the post in the     Mr. Zhou Hongjiang serves as the position of chairman in the shareholders company from 10th January,
    shareholder’s company           2018 to 10th January, 2022. Mr. Leng Bin serves as the position of general manager in the shareholders
                                   company from 10th January, 2018 to 10th January, 2022.
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Post at other companies
    
    ?Available □Not Available
    
                                                                                      Beginning  Ending date of   Paid by other
                 Name                    Other’s company        Post at other company date of the     the post     company or not
                                                                                         post
                                   Yantai Changyu Zhongya       Director and
    Leng Bin                       Medicine & Healthy Liquor Co., legal representative    2012.09.10               No
                                   Ltd
    Explanation for the post in the     No.
    shareholder’s company
    
    
    Djoibscainpdlinleafrtydaucrtiinogntshteakreepnobrtypseercioudrities regulators in recent 3 years to the Company’s directors, supervisors and senior management both on the
    
    □Available ?Not available
    
    4. Salary of directors, supervisors and senior executives
    
    DTheecissaiolanr-ymfaokrinthgepirnodceepses,ntdheentbadsiirsecotfordsetiesrpmaiindaaticocno,rtdhiengacttouathl eparyesmoelunttioonf doifreschtaorresh,osludpeerrsv’ismoersetainngd.sTehneiosraelxareycuftoirvethse chairman, directors with
    
    PadrmopinoissatlraotinonAsdsuetsys,mseunpteMrveitshoorsd,smofanthaegeCrsomanpdanoyt’hserSesneinoirorOmffiacneargs’emPeernftorsmhoaunlcdebferopmai2d01o4n tboas2i0s1o7fwthheichevwalausatpioansseredsudlutriancgcothrdeinBgoatordthoef
    
    Directors’ meeting.
    
    Salary of directors, supervisors and senior executives during the report period Unit: CNY’0000
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                                                                                                  Total reward from    Whether get
              Name                       Post               Gender    Age          Status          the Company      reward from
                                                                                                      beforetax     related parties of
        the Company
    Zhou Hongjiang           Chairman                     M              54 present incumbent              154.81 No
    Sun Liqiang               Director                      M              71 present incumbent              138.89 No
    Leng Bin                 Director                      M              56 present incumbent                   0 Yes
    Sun Jian                  General manager               M              52 present incumbent              140.41 No
    Qu Weimin               Director and Secretary to theBoardof Directors             M              61 present incumbent               94.31 No
    Zhang Ming               Director                      M              45 present incumbent                   0 No
    Augusto Reina            Director                      M              78 present incumbent                   0 No
    Aldino Marzorati          Director                      M              66 present incumbent                   0 No
    Antonio Appignani         Director                      M              80 present incumbent                   0 No
    Wei Anning               Director                      M              55 present incumbent                   0 No
    Wang Zhuquan            Independent Director           M              53 present incumbent                   8 No
    Wang Shigang             Independent Director           M              53 present incumbent                   8 No
    Luo Fei                   Independent Director           M              66 present incumbent                   8 No
    Liu Yan                  Independent Director           F               45 present incumbent                   8 No
    Guo Guoqing              Independent Director           M              56 present incumbent                 0.67 No
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Kong Qingkun            Chairman to the Board ofsupervisorsM              46 present incumbent               71.29 No
    Zhang Lanlan             supervisor                     F               49 present incumbent               21.06 No
    Liu Zhijun                supervisor                     M              38 present incumbent                   0 No
    Yang Ming               Deputy-general manager        M              60 leaving the post                  17.92 No
    Li Jiming                 Chief Engineer                M              52 present incumbent              107.19 No
    Jiang Hua                 Deputy-general manager        M              55 present incumbent              101.19 No
    Peng Bin                 Deputy-general manager        M              52 present incumbent              105.17 No
    Jiang Jianxun              Chief financial officer          M              52 present incumbent              106.84 No
    Pan Jianfu                General manager assistant       M              43 present incumbent               78.26 No
    Liu Shilu                 General manager assistant       M              44 present incumbent               48.32 No
    Xiao Zhenbo              General manager assistant       M              42 present incumbent               91.88 No
    Total                                   -                   -         -              -                   1,310.21        -
    
    
    The awarded equity incentives for the directors, supervisors and senior executives of the Company during the report period
    
    □Available ?Not available
    
    5. Staff of the Company
    
    (1) Staff number, specialty constitution and education degree
    
     Incumbent staff number of parent company (people)                                                                            1,339
     Incumbent staff number of major subsidiary companies (people)                                                                  1,894
     Total incumbent staff (people)                                                                                               3,233
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     Total staff getting paid in current period (people)                                                                               3,233
     Retired staff number whose expenses are undertaken by parent                                                                       0
     company or subsidiary companies (people)
                                                           Specialty constitution
                                Category                                                 Number of people (people)
     Administrative staff    263
     Technical staff    165
     Financial staff    152
     Production staff    1,000
     Sales staff    1,653
     Total    3,233
                                                             Educationdegree
                                Category                                                     Number (People)
     Bachelor and above    1,125
     Junior College    1,118
     Technical secondary school                                                                                                   546
     Senior high school and below                                                                                                  444
     Total    3,233
    
    
    T(2h)eRCeommupnaenryatbiuoinldpsoalnicdyimproves the remuneration and welfare system, including salary system, incentive mechanism, social security and
    
    health insurance and so on, to make sure that all staff could be insured. In accordance with the law, the Company buys social old-age insurance,
    
    medical insurance, occupational injury insurance, unemployment insurance and maternity insurance, and pay housing fund for staff. Based on
    
    the principle of “distribution according to work, equal pay for equal work”, the Company pays the staff’s remuneration timely. With the increase
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    oanfdthweeClfoarme,paannyd’sprporvoifdietasbtihlietyc,otmhepeCtiotimvepasnaylarsyteiandciolymiemapnrdovdeesvethloepsmtaefnft’sspreamceuonfereaqtiuoanl
    
    opportunity for staff.
    
    (3) Training plan
    
    tIhneoCrdoemr ptoanfuyrpthlaenr simtoprinovveestthCeNemYp3l.0o2yemeisl’licoonminpr2e0h1e9nsfiovreeqmupalloityyeaentdrapinroinfgespsiloannawl hskicilhl,
    
    is shown as follows:
    
    ①1) GSeenneiroarl atrnadinMinigddle-level Managers
    
    Ecemntprlaolyizepdrolfeecstsuiroensacloluelcdtubreerass tmoetthheodcsoomfptraaniyninogr. tDhruoruinggh threemyoetaer,nfeotuwrotorkpicvsidweoillfboer
    
    dararyasngfoerdefaocrhmtriadidnlienga.nd senior management staff once for each quarter and one to two
    
    B2)aPserdofoesnsitohneiarl rterasipneicntgive work, organize them to attend Entrepreneur High-end Forum
    
    satnuddyS;uamttmenitdMuneeivtienrgsitayndcogroretsopodnodmeenscteic, saenldf-sftourdeyignexsaumccineastsifounl,eMntBerApriosre ofothrevrifsuitrtahnedr
    
    evdouccataitoionnal fqour almifaicsatetirondegexreaem; inoartgiaonnizeforprporfoesfessiosinoanlalmacneratgifeimcaetne;t tcoadraettse,ndto saptetecniadl
    
    ttroauirniisnmg eatct wlehaiscthtawrieceorgaanyiezaerd, bsyucshpeacsialsamfeatnya,gteemchennot ldoegpya,rtfmaceinlti.ty, finance, WSET,
    
    ②1) GMenaerkraeltitnraginpienrgsonnel
    
    tIrnadinepinegndmenattleyriastlusdiyncmluadriknegtinthgetecxotmbopoaknsy,’smraeilnaltyedfomcuasnianggemonen‘tGsryoswtethm’,, apsrowdueclltioans
    
    k2n) oPwrolfeedsgseio, nsaalletsrariensipnognsibility system etc.
    
    vPirdoefeosssitoongailvleecletucrteurrseswaobuoludt bseucecmespslfouyleldiqtuoorthceasceosm, pcuanrryenotretchornooumghicretrmenodte riensteearrnceht
    
    fpoerrsdoonmneelstwichoasned lfeovreeligins worinaeboinvdeumstraynaagnedr oasthsiesrtatnotpiicn icnityordmearrktoetitnakgemtraanianginegmefonrt
    
    mcoamrkpeatninygomncaenaageqr uoanrtehrowandto oimneprdoavye mfoarrkeeatcihngtismkiel;l ataskwe ecllloassedexteraciuntiinvge ffoorrceciotyf
    
    sdairleesctoprosliacnydoontcheeraptetrhseonsntaerlttaokfeeaacchommboinntahtioanndtroainneindgaymefothroedacohf htiirmineg. Fleocrtubruerssinaensds
    
    gmoairnkgetoinugt tmoavniasgitemfoerntstcuodnycienpgt,s.thTehyisctorualidninbge itsracionnedduscutecdceosnsfcuelamqaurakretetirnagncdaosense adnayd
    
    for each time.
    
    ③1) GPernoedruaclttiroaninainndg management personnel whose level are below section chief
    
    aSbeitlictyouarnsdesexthecaut tiavree aabimiliitnyg, hairteiampprroofveisnsgionemalplleocytueerermoarnuangievmeresnittyatbeialcithye,r itnontoevaacthioant
    
    the company two times a year and one day per course; attend common-sense general
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    ktrnaoinwinlegdginec,lurdeiinngfocrocme ptarnayinicnuglturine, rtehgeulaatsopreyctfraomfewhourmkaanndrevsaoruiorcuessliqmuoanrapgreomduecntts;
    
    EinmdepploeynedeenHtlayndstbuodoyk;traatitnenindgomutadtoeoriraqlsuaplriotyviedxepdanbsyiotnhetrcaoinminpganoyn,cesuachyeaasr.Growth and
    
    A2)ttPernodfesusnioivnearlstirtyaincinogrrespondence, self-study examination, MBA or other further
    
    pedroufceastsiioonnalfocrertimficaastteer; badseegdreoen; peartsteonndnelvwoocarkti,oantatelndquspaelicfiiaclattiroanininegxaamt lienaasttiotwn icfeoar
    
    wyeoarrk, ,wthheichCoamrepaonrgyanwiizleldorbgyansipzeecitaol amttaennadgetrmaiennint gdewpharictmh ecnatn; fiomrpdroifvfeerepnrot fteyspseiosnoafl
    
    strkaiilnl ianngdanodpeleraatrinoinngleevxeclh; atnegche.nology backbones would be selected to attend overseas
    
    (4) Labor outsourcing
    
    □Available ?Not available
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    IX. Corporate Governance
    
    1. Current Corporate Governance Situation of the Company
    
    (T1h)eACboomutpasnhyarheahsosldeteruspathnedDshealirbeehraotlidoenrsR’umleeseotifnSghareholders’ Meeting, and convened the
    
    sshhaarreehhoollddeerrss’’ mmeeeettiinngg,s minadestrtihcet gacrecaotrdeafnfocert wtoithprorveqidueirecmonevnetsnieonft sctoannddiatridonsopfionriomn ooref
    
    ssahmareeheoqldueitrys taonpdarwtieclilpaetxeetrhceiseshdartehheoirldreirgsh’tsm. eTethiengC, aonmdpeannsyurderdewallgsrheaartehaottlednetrisontotoenjtohye
    
    icnoqmumiryuniacnadtionqueasntdionesx, chaanndgewiwdietlhy slhisatreenheodldetros, thaectivsuelgygersetisopnosndaendd thceomsmhaernethsoldfreorms’
    
    s(2h)arAehbooludtertsh.e Company and holding shareholder
    
    iTnhdeepCenodmepnat noyf ihtsashoinlddienpgenshdaernethoplodwererononbubsiunseinsse,ssstaafnf,dassseelft-sm, oanrgaagneimzaetniot,n aanndd failnsaoncbee.
    
    oTrhgeanBizoaatirodnsofopDeriaretecdtorisn,deBpoenarddentolfy SinuptehrevisCoorsm, pmanayn.agTehmeenhtoldteinagm shanardehaollsdoer inotfertnhael
    
    sChoamrephaonldyercso’ulmdereetignuglatteo idtsireaccttliyvitoiers,inndoireoctthlyer ibnetehrafveiroer wwiaths fthoeunddecthisaitons-umrpaaksisnegd atnhde
    
    tbhuesiCnoesmspaacntiyv’istiaensdomf tehdeiuCmom&psamnyal,losrhaorcechuoplideedrsa’niyntaesrseesttss.of the Company which damaged
    
    T(3h)eACbooumtptahneydisrtericcttolyr aanpdpobionatsrdalolf ddiirreeccttoorrss in light of Company Law and Articles of
    
    Aresgsuolcaitaiotinosn.s.InThacecqourdalainficceatwioinths othfealrleqduiriercetmoresntasreofinClionrepowriathtethGeovreeqrnuairnecmeeGntusiodfellianwess, atnhde
    
    iCnodmeppeanndyenhtasdicraercrtioerds oaucct otuhneticnugmfuolrataivbeouvtotoinneg tshyrseteemo.f Aaltl pdrierseecntot,rst,heanCdotmhepannuymhbaesr faonudr
    
    aconmd palossoitiAornticolfesboaanrdd Aosfsdoicrieacttioornss.wAalsl bdairseiccatollrys ionf athcecoCrdomwpitahnyrecqouuirldemweonrtks ionf trheegulilgahtitonosf
    
    rInegduelpaetniodnesntinDcilruedcitnogrs,RpuulnesctuoafllyBoaattredndoefd Dboiraercdtoorfs’dirPercotocersd’uraendasnhdarWehoorlkdienrgs’ Rmueleetsinfgosr,
    
    raecgtiuvlealtyiontosockonpcaertrniend, rehlaedvaantdkeenpowklneodwgeledtrgaeinianngd, lkonnegwexvpereyriewnceell oafbopurtactthiteionlaewrss, aanndd
    
    cpoenrfvoernmeeddthtehemireedtiuntgiessinaaccccoorrddinangcetowitthherellaawtedarnudlesreagnudlaretigounlsa.tioTnhse. Board of Directors
    
    T(4h)eACbooumtpsaunpyersvtriiscotrlyaneldecbtoedardallofssuupperevrivsiosrosrsin light of Company Laws and Articles of
    
    Aissrseopcrieastieonntas.tiAvet fporressetnaft,f,btohaerdnuomf bsuerpearnvdiscoorsmhpaossitthioreneopfeboopalerdamofosnugpewrhviicsohrowneassuinpearcvciosordr
    
    wreiqtuhirreemqueinretmoefntsRouflerseguolfatiBonosaradndorfuleSsu.pAelrlvsisuopresr’visPorroscoefduthree,Coinmspisatnythceoulpdrifnoclilpolwe thoef
    
    responsibility to all shareholders, seriously perform their duties, effectively supervise and
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    pdruetsyepnetrtfhoerimr ainndceepoefnddiernetctooprisnaionnd omnanimagpeorrstaonftthisesuCeosm, ipnatenryr.elated deals, financial status, the
    
    (T5h)eAebnoguatgpeemrefonrtmoafnmceaenvaagleursatiwonasanodpeinnceanndtivterasnysspteamrent, and accorded with laws and
    
    reevgaululaattiioonns.staTnhdeardCaonmdpfaonrymehdaesffiecsiteanbtliisnhceedntiavnedsygstreamdu,aslolyasimtoperonvsuerde tthhee saplearrfyoromf asntacfef
    
    (to6)bAe blionuktedstwakitehhjoolbdepresrformance.
    
    TbehneefCito,mcpoaonpyercaoteuladctfiuvlelylyrewspitehctthaendstsaakfeehgouladredrst,hejoliengtlayl rdigrihvtes othfethCeopmaprtaynywittoh rdeelveevlaonpt
    
    cporontteinctuiaolnly aanndd psutabblliyc, uptailyitiegsreaettca.,tteanntidonastosumthee ifsuslul esresspuocnhsiabsilitlioecsal foernvitrhoenmseonctiaall
    
    r(7es)pAobnsoiubtiltihtye. information disclosure and transparency
    
    iTnhveesCtoormprealnaytiohnas mapapnoaignetmedentthe inseccluredtianrgy toinfBoromaradtioonf Ddiirseccltoosrusret,o bineverestsopronsriebllaetiofnosr
    
    amsasnigangeedmeCnhtinaandSereccuerpittiieosnNoefwsshpaarepheor,ldSeercs’urvitiiseits aTnidmecso,nsHuoltnaktioonng. TChoemmCoermcpiaalnyDahialsy aalnsdo
    
    dwiesbclosisteedhattnpy://iwnfwowrm.cantiionnfo.icnomth.ecnli/gthot doifscrleoqsueirinemfoermntatoifonr,elpeuvnacnttulaalwlys, aacncdurrautleelsy, aanndd traulslyo
    
    eInnsourrdeedratlol sfhuarrtheherolpdeerrfsectot hthaeveCsoammpeaonpyp’sorgtuonvietryntaoncaecqsuyisrteeman,ydiunrfionrgmtahteionre.port period, the
    
    CProomdpuacntiyonforOmrudlaetres FanudlfililmmpernotvesRaOtep,iniAonsseosfsmBreanntd MPoesthitoiodninogf, ASsasfeestsymenMtaMnaegtheomdenotf,
    
    PImropjleecmt,enItmatpiolenmPelnatnatoiofnBrOanpdinyioInnteronfalBQuiuldailnitgy ITmepcrhonviecmalenCt oamndmTunecichantoiolongiPcalal tIfnonrmovawtiiotnh
    
    OAsvseersssemaesnEt anntedrpErvisaelus,atAiosnseMssemtheondt oafnSdelEf-vsaulpupaotirotinngMVeitnheoydarodfs Canodntsroacotne.d Bases in 2018,
    
    cWorhpeothraetre ogrovneortnatnhceereanisd sthigennifoicrmanattivveardiaonccuembenettws eaebnoutthleistCedomcopmanpya’nsyagcotuvaelrnsaintucaetiiossnueodf
    
    by China Securities Regulatory Commission.
    
    □ThYerees is ?noNosignificant variance between the Company’s actual situation of corporate
    
    SgoevcuerrintaiensceReagnudlathtoerynoCrommatmiviessdioonc.uments about listed company governance issued by China
    
    2p.erRsoelnantievl,eatsosetths,eocrognatnriozlalitniognsahnadrefhinoaldnecre, independence of the Company on business,
    
    T(1h)ePCerosmonpnaneyl ’Asrgreannegreaml menatnager, deputy general managers and other senior officers, all of
    
    wCohmompawnyerwe apsaiedntbiryeltyheinCdeopmepnadneyntainndpdeirdsonnontelhoalrdraanngyempeonstt,incotnhcelucsoionntroalnlidngadpjaursttimese.nTt hoef
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    mlabaonragceomnetrnatc.ts thanks to its sound and independent system for labor, personal and salary
    
    T(2a)nAgisbsleets:assets and Intangible assets including trademark, industrial property right and
    
    snhoanr-ephaoteldnetr,tecahnndoloagllieslewgaelrefaolrlmcalleiatirelys dwiveirdeedcobmetpwleeetend.theThCeomCpoamnypaannyd btheeincgonatrollelignagl
    
    ginudaerpaenntedeenint aennytityforcmonwsiistthenittlsyascsoentsdufcotreditsbsuhsairneehsosldaecrtsivoitrieisndilvegidaullayls’anlidabiplirtoievsidoedr annoy
    
    “ot爱he斐r le堡ga”l, p“e爱rso菲ns堡o”r ,n“a爱tur斐al ”pearnsdon“sA. TFhIPe”C, oetmc.pHanoywoewvenrs, tdruadeetmo asrokmseinicslsuudeisngfro“m黄金the冰p谷ast”,,
    
    othwenCerosmhippanayndpepramteitntet dsttiolluhseeld“Cbhyanthgeyuc”oenttcrotlhliengintsahnagriebhloeldasesrest.sEsxuccehpatsppaartritaol ftrtaraddeemmaarkrks
    
    whahviechbeceann rneogtisbteerpeedeolerdaopfpfli“e张d b裕y ”th(CehCaonmgypua)nytrabduetmwaerkre, trreagdiesmteraerdksoarnadppplaiteedntbsythCahtacnoguylud
    
    CGhroaunpgywuhGortohuepn faourthforeriezebdeftohree Cthoemepnadnyoffo2r0u1s9agien worildlebr etotraennssfuerreretdhetointdheepCenodmepnacneyanbdy
    
    c(3o)mFpilneatennceess of the Company’s assets.
    
    Tcohme pCloetme,painnydehpaesnidnednetpenanddentsftiannadnacredidzeepdartamcceonut,nctihnigef ascycsoteumnt. anTdhefinCanocmiaplasntayff,haansd aallssoo
    
    efisntaanbcliisahleidnditisviodwuanlsbadnoknaoctchooulndtsa,ndyuclyonacnudrrleengtaplloysptsayininagsstoaxcieast,ewd ocrokmerpsaniniesusraanndcearfeunadb.leAtlol
    
    mesapkeecifailnlyanrceisaplodnesciibslieonfosrinthdeepinetnedrnenaltlayu.dTiht ewCorokmopfatnhye hCaosmitpsaonwy.n audit department, which is
    
    (T4h)eOCfofimcepsany has set up a sound organizational framework, in which the Board of Directors
    
    aexndistBs obaertdweoefnStuhpeefruvniscotirosnoalpedreapteartimndeenptesnodfenthtley,connotrosullpinegriosrhaarnedhosludbeor.rdTihneateCormelaptaionnyshhaips
    
    iitnsdeopwenndenintdteopeenxdeercnitseptrhoediurcptioowner&s anbduscinaerrsys oouftfitchees,praoldl ucfutinocntioanndal budseipnaerstsmaecnttisvitaieres
    
    (in5d)eOppenedraentitolyn.s
    
    oTwhensopitesrealtfiocnosmopflethteelyCionmdeppaennydaernet isnydsetpemensdecnotveorfinthgerceosenatrroclhlinangdshdaerveehloolpdmere.nTt,haecCcooumnptianngy,
    
    wpoosrskefsosrecde aonfd slealbfo-rru, nqucaaliptyabcilointiterso,l, arnawd mhaasterniaelisthpeurrcrhealaseti,onpsrohdipuctwiointhanthdesacleosn,traonldlinigs
    
    shareholder in terms of supply and sales by proxy nor competition with the other.
    
    3. Situation for Horizontal Competition
    
    □Available ?Not available
    
    4d.uIrninfogrtmheatrieopnofrotrptehreiosdhareholders’ meeting and temporary shareholders’ meeting held
    
    (1) Information for the shareholders’ meetinYgandtauirCihnagngtyhuePironeeperoWrtinpeeCroi.oLdtd. 2018 Annual Report
    
         Session     Meeting type ParrtaitciiopaotfionConvening  Disclosure
                                   investors      date        date        Disclosure Index
                                                                   Rhtetpso:/l/uwtiwown.cninfo.com.cn
      S2h0a1r7ehAonldneurasl’shaArenhnouldaelrs’ 63.87%     2018.05.24  2018.05.25 AAnnnnuoualncementof 2017
        Meeting        meeting                                     S(Ahnarneohuonldceemrse’nMteeting
                                                                   no.:2018-Temporary15)
                                                                   Rhtetpso:/l/uwtiwown.cninfo.com.cn
      2F0i1r8stAInntneuriamlInterim                                     AAnnnnouualncementof 2018
       Shareholders’ Shareholders’ 64.86%     2018.12.26  2018.12.27MeetingFirst InterimMeetingShareholders’ Meeting
                                                                   (nNo.o:2ti0fi1c8a-tTioenmporary22)
    
    
    o(w2i)nRg erqecuoevsetrfeodrvcootninvgenriingghttemporary shareholders’ meeting by priority shareholders
    
    □Available ?Not available
    
    5. Performance of independent directors during the report period
    
    m(1e)eAtitntegndance of independent directors for the board of directors and the shareholders’
    
                      Attendance of independent directors for the board of directors
                                                                         WorhneotthteortAimtteenfdoarntchee
         Name      aRtteeqnudiarnecdeaPtteernsdoannacleCoamttmenudnaincacteionAatutethnodrainzceedAbsence amtteeentdintghseshamreeheotilndgers’
                      time                                               personallyfor
                                                                        suctwceiscseive
    Wang Shigang   6         1         4             1                0 No       0
    Wang Zhuquan  6         2         4             0                0 No       0
    Luo Fei         6         2         4             0                0 No       0
    Liu Yan        6         2         4             0                0 No       0
    Guo Guoqing    0         0         0             0                0 No       0
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Etwxopltaimnaetsion for failed to personally attend the Board of Directors’ meetings for successive
    
    N(2o) Any objections for the Company’s projects from the independent directors
    
    Whether or not the independent directors raised any objection for the Company’s projects
    
    □DuYriensg th?e Nreoport period, the independent directors did not raise any objections for the
    
    C(3o)mOptahneyr’esxpprolajencattsi.ons on independent directors’ performance
    
    Whether or not the independent directors’ propositions are accepted by the Company
    
    E?xYpelasnatio□nNoon acceptance or refusal of the independent directors’ propositions to the
    
    DCoumrinpganythe report period, some independent directors propose suggestions on prudent
    
    ihnivghesetrmreisnkt iinn tthoeurcisumrrepnrtobjeacctkogfroCunhdanogfyusloInwteerrngartoiowntahl oWf idnoemCeisttyi.c Tehcoeynotmhoyu. gThhtethCaotmitpiasnya
    
    accepted the independent directors’ opinions and decided to suspend construction of the project.
    
    r6e.pPoerrtfpoerrmioadnce of the special committees under the Board of Directors during the
    
    c①onAduucdtietdinganCeoxm-amntiet,teien:-pDroucreisnsg, atnhde proepsto-retvepnetriroedv,iewthetoCreolmatpeadnayn’snuaauldrietpinogrt Cauodmitmwitoterke
    
    astnadtemmaednetsreislseuveadntbayrrtahnegCemomenptasn. yThmeeat uthdeitirnegquCiroemmmenittteoef bAeclcieovuendtinthgaSt t2a0n1d7aradnsnufoarl Bfiunsainnceisasl
    
    wEnetlelrapsris2e0s17anadntnruualyl abnudsinfaeisrslypreerffloercmteadntchee abnadlancacsehcoflnodwit.ioTnhuepretowDereecenmobuenrs3o1lvste, d20m17ajoasr
    
    mdivanearggeenmceenst.inThaecCcooumnptianngy aonpderaatuedditsitnegadoilry manadjohradristhke iasbsuileitsy aofffeccotnintignutohues Copoemraptaionnys's.
    
    Ponro2p0o1sa7lsAinnnculuadl iPngro2fi0t1D7iAstnrnibuuatlioSne,lfA-apspsoeisnstminegntCReerptiofiretdonPuInbtleicrnAaclcCouonnttaronlt,sDFriarmft ,pCrohpaonsgael
    
    PinlaAnccwoeurnetidnegliPbeorlaicteyd,.2A0u1d7itAinngnucaolmRmepitoteret, p2a0s1s8edSeamboi-vaen-nmueanltRioenpeodrtparonpdo2s0al1s8aAnndnsuuablmAiuttdeidt
    
    the related proposals to board of directors for deliberation.
    
    ②ecoEnommoylurmesepnot nCsiobmilimtieitsteoef: thEemdoilruemctoenrst aCndomthmeistteeneioirsexreescpuotinvseisblwe hfoorrecaessiveesssmaelanrtiesoffrothme
    
    tdhireecCtoomrspaanndy asnendioerxaemxiencauttiiovneso.fDthuerisnaglatrhyeproelpicoyrtanpderisocdh,emtheedCesoimgnpeadnyfohr etlhde ECmomolpuamnyen’st
    
    CCoommpmainttye’esmSeenetiionrgEoxnecceu.tiPvreospwosaasl doenli2b0er1a7teAdnannudalpaPsesrefdormbyanthcee mAseseetisnsgm,ewnthoRethsuolutgshotfththaet
    
    tSheinsiodrocEuxmeceunttivweafsroimn c2o0m14pltioan2ce01w7.ithEmPoelrufmoremnatnCceomAmssiettsesemaegnrteMedetthoodsusbfmorit Cthoemrpealantye’ds
    
    pDruorpinogsaltshetoreBpooarrtdpoefriDodir,etchtoerBs ofoarrddeolfibDeriareticotno.rs’ Emolument Committee also examined the
    
    f2r0o1m7 tahnenCuaolmppaaynryolalnrdecboerldiesvoefs tthhaet dthireecstaolrasrieasndofththeesCenoimorpamnayn’sagdeirrescwtohrso, sreucpeeirvveissoarlsaraineds
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Cseonmiopramnya’nsageecrosnroemceiicverdesfproomnsitbhielitCyomaspsaenssymisensttriscytlsyteams.sesTsheed asnadlardieelsivedriescdlobsaesdedboyn tthhee
    
    Company are in conformity with the actually paid amount.
    
    W7. hTehtheewr oorrk noof tthteheBoBaoradrdofoSfupSeurpveirsvoirsosrs found any existence risk to the Company in
    
    oversight activities during the report period
    
    T□hYe eBsoard?oNf Soupervisors has no objections to supervision matters during the report period.
    
    8. Performance Evaluation and Incentive situations of Senior Management
    
    mThaenaCgoemmpeanntyanhdasthalereraedlayteedstainbcliesnhteivdeassyosutenmd swyshtiecmh lfionrkeevdatlhueatiroenwaorfdacwhiitehvethmeeCntoomfpsaennyio’sr
    
    absesnuemfitedanthde rpeesrpsoonnsailbialcithyieovfesmtiepnutl.atTinhgethEempoolluicmyeanntdCaopmprmaiistitneeg tuhnedsecrheBmoearfdorosfalDariireesctaonrds
    
    sreewniaorrdsp.eBrsaosneadlsonantdheaClsoomtphaeniry’rsesapnonnusailblbeussiunbessisdipalrainensinogr gdoeaplasr,tmtheisntcsomacmcoitrtdeiengextaomtihneeidr
    
    Dmuanrianggemtheenrtepaochrtiepveermioedn,tbaencadusinedoefxnaontdfintoisohkintghethsee aansncurailtebriuosnineosfs apwlaanrddseloibrerpaetneadltaiensd.
    
    preawssaerddsinofththeeBsoeanridoromf aDniargecetmoresn’tmareeebtiansgicaatlltyheeqbueaglitnontihnagtooff tlhasetyyeeaarr,. the total salaries and
    
    9. Internal Control
    
    r(1e)pSorptecpiefriciosdituations for significant defects of the internal control found during the
    
    □Yes ?No
    
    (2) Self-assessment report on internal controlDisclosure date for full text of the 2019.04.20
    
     internalcontrol self-assessment report
     Disclosureindex forfulltextofthe       2017 Annual Self Assessment Report on Internal Control and 2018
     internalcontrol self-assessment report    Annual Self Assessment Report on Internal Control disclosed on
                                      SbyectuhreitCieosmTpimaneys,oCnhAinpariSle2c3urrd,it2ie0s1J8oaunrdnaAlparnidl2w0wth,w2.0c1n9in.fo.com.cn
     Percentageoftotalunitassets included
     inscopeoftheassessment accounting                                                          88.34%
     fortheCompany’s total assets of
     consolidatedfinancial statements
     Percentageofunitoperating income                                                           90.38%
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
     includedinscope oftheassessment
     accountingfortheCompany’s operating
     incomeofconsolidated financial
     statements
                                       StandardsofDefect Identification
          Category                    Financial report                        Non-financial report
     Qualitative criteria     Significant  defects:  one  defect  of  internal  Significant  defects:  Any  situations  listed
                        control,  individually or together with other  below  appears,  it  can  be  regarded  as
                        defects, has the reasonable probability to cause  significant defects. ? Operation: Unable to
                        the significant misstatements, which can not be  achieve all operation target or key business
                        promptly  prevented, or found and corrected  index,  widely  out  of  budget  in  various
                        timely in the financial report.  For example: ?  aspects. ? Safety accident effects: Cause no
                        Company’s Directors, Supervisors and Senior  less than one person death, or more than 3
                        Management have fraudulent practices; ? The  person serious injuries. ?  Major negative
                        Company makes corrections for the published  effects:  Negative  information  frequently
                        financial  report; ?  The audit of external  appears in the medias with involving a wide
                        intermediary    agent    finds    significant  scope  in  the  international  and  national
                        misstatement existing in the current financial  mainstream media. ? Environment effects:
                        report, but the Company does not realize it  Create irreparable damages to environment,
                        during  the operation process; ?  Negative  andcause massivepublic complains.
                        information frequently appears in the medias  Major defects: Any situations listed below
                        with  involving  a  wide  scope;  ?   The  appears, it can be regarded as major defects.
                        Company’s audit committee and internal audit  ? Operation:  Unable  to  achieve  partly
                        department makes an inefficient supervision for  operation target, a big margin out of budget in
                        internal  control; ?  Other situations maybe  various aspects. ? Safety accident effects:
                        cause significant misdirection which guides the  Without reaching the person loss or the
                        report users tomake therightjudgment.        number  of  serious  injury  of  significant
                        Major defects:The defect of internal control,  defects. ? Major negative effects: Negative
                        individually or together with other defects, has  news appears in the media with influencing a
                        the  reasonable  probability  to  cause  the  wide scope in the provincial mainstream
                        significant  misstatements, which can not be  media. ? Environment effects: Cause heavy
                        promptly  prevented, or found and corrected  environment damages and massive public
                        timely  in the financial report, although the  complains, ought to carry out the significant
                        misstatements neither achieves nor exceeds the  remedial measures.
                        importance level but still arising the attention  General defects: Any situations listed below
                        of Board of Directors and management team.  appears, it can be regarded as general defects.
                        ?  Failure to select and apply accounting  ?  Operation:  Other  effects  unable  to
                        regulations  in  accordance  with  generally  constitute the significant defects or major
                        accepted accounting principles; ? Failure to  defects. ? Safety accident effects: Personal
                        establish the anti-fraud procedures and control  injury less than the quantitative standards of
                        measures; ? Failure to set up corresponding  major defects. ?  Major negative effects:
                        control mechanism or to carry out and take  Other  defects  unable  to  constitute  the
                        corresponding  compensating control for the  significant  defects  or  major  defects.  ?
                        accounting  treatments  with  irregular  and  Environment  effects:  Other  environment
                        special deal; ? Negative news appears in the  effects unable to constitute the significant
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
                        media with influencing a wide scope;? One or  defects ormajordefects.
                        more defects exist in the control during the
                        process of the ending financial report, and the
                        target of achieving truthfulness and integrality
                        cannot  be  reasonably  guaranteed  in  the
                        financial report; ? General defects refer to the
                        other control defects, which do not constitute
                        the significant andmajor defects.
     Quantitative criterion   For totalassets/Owner’s equity:              For direct property loss:
                        ? Significant defects:misstatements ≧1%     ?Significant defects: Morethan CNY10
                        ?Major defects:0.5%≦misstatements<1%     million
                        ? General defects: misstatements<0.5%        ?Major defects: CNY1million-CNY10
                        For operation revenue:                     million (including 1million)
                        ? significant defects: misstatements ≧1%     ?General defects: Lessthan CNY1million
                        ?Major defects:0.5%≦misstatements<1%
                        ? General defects: misstatements<0.5%
                        For pretaxprofit:
                        ? Significant defects:misstatements ≧5%
                        ?Major defects:2%≦misstatements<5%
                        ? General defects: misstatements<2%
     Number of significant                                                                           0
     defect  in  financial
     report
     Number of significant                                                                           0
     defect in non-financial
     report
     Number   of   major                                                                           0
     defect  in  financial
     report
     Number   of   major                                                                           0
     defect in non-financial
     report
    
    
    10. Internal control audit report
    
    ?Available □Not available
    
                           Audit opinions of the internal control audit report
    rWepeobrteliinevaelltshiagtnYifiacnatnatiaCshpaenctgsyuinPaicocnoeredranWceinweiCtho.G,Lentde.rakleCptrieteffreiactiovfeCinotmerpnaanlyc’sonItnrtoelrntoalfiCnoannctrioall
    and other related rules on December 31st, 2018.
    Disclosure of the internal control audit    Disclosure
    report
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Disclosure date for the full text of the     April 20th, 2019
    internal control audit report
    Disclosure index for the full text of the    2018 Annual Self Assessment Report on Internal Control
    internal control audit report              disclosed on Securities Times,China Securities Journal
                                          and www.cninfo.com.cn by the Company.
    Opinion type of the internal control audit  Standard without reserved opinion
    report
    Whether or not exists significant defects in No
    non-financial reports
    
    
    iWntheernthaelrcoonrtrnoolt the accounting firm issued non-standard opinions for the audit report of
    
    W□hYeetsher t?heNaoudit report of internal control issued by the accounting firm is in consistency
    
    with the self-assessment report of the board of directors
    
    ? Yes ?No
    
    X. Related Situation of Corporation Bonds
    
    eWxchheathnegre,ornontodt utheeoCnothmepaannnyuhaal sretphoertc’osrpauotrhaotiroinzebdoinsdsuseisdsauteedoirnfapiulebdlict,olpisatyedininfutlhleosntotchke
    
    Nduoe. date.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    XI. Financial Report
    
    1. Audit Report
    
    Type of audit opinion                         Standard unqualified audit opinion
    Date signed on audit report                    April 18th , 2019
    Audit agency name                           Deloitte Hua Yong certified public accountants co.,
                                                Ltd.(special general partnership)
    Audit report No.                             De Shi Bao (Shen) Zi (19) No. P02452
    Certified public accountant's name             JieYanfeng,LiYangang
    
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    AUDITOR'S REPORT
    
    De Shi Bao (Shen) Zi (19) No. P02452
    
    (Page 1 of 5)
    
    YTOANTTHAEISCHHAARNEGHYOULDPEIORNSEOEFR WINE COMPANY LIMITED
    
    1. Opinion
    
    (W"YeanhtaavieCahuadnigtyedu Cthoempfiannayn"c)i,alwhstiacthemcoemntpsriosef tYheanctoani soClhidaantgeyduanPdioCnoeemrpaWnyin'se bCaloamncpeanshyeeLtsimaisteadt
    
    3C1omDpeacneym'sbecras2h01f8lo, wandstattheemceonntssoalinddatethdeancodnCsoolmidpataendy'sanidncoCmome psatantye'ms esntatst,emtheentcsonosfolcihdaantegdesanidn
    
    owners' equity for the year then ended, and the notes to the financial statements.
    
    LInimoiutredopiisniporne,pathreedacacnodmppraensyeinntgfafiinrlayn,ciianl asltlatemmaetenrtisalofreYspaencttasi, CthheancgoynusoPliiodnateeedr WanidneCComompapnayn'ys
    
    foipnearnactiiaolnspoasnidtiocnasahs folofw3s1foDrectheembyeerar2t0h1e8n, eannddedthien caocncsoorldidanatceedwainthd AthcecoCuonmtinpganSy'tsanrdeasrudlsts foorf
    
    Business Enterprises.
    
    2. Basis for Opinion
    
    tWhoesecosntadnudcaterddsoaurreafuudrittheinr adcecsocrridbaendceinwtihthe AChuidniatoSr'tsanRdeasrpdosnosinbiAliutideistifnogr. tOheurAruesdpitonosfibthileitiFeisnaunncdiearl
    
    wStiathtemtheentcsodseectoiof netohficosufrorreCpohritn.eWseeCaerretifiineddepPeunbdliecntAocfcoYuanntatanitsC, haanndgywueChoamvepafunlyfililnedacocuorrdoatnhceer
    
    oetbhtiacianledreisspsounfsfiibciielintiteasndinapacpcrooprdriaantceetowpirtohvtihdee aCboadsei.s Wforeobuerloiepvieniothna.t the audit evidence we have
    
    3. Key Audit Matters
    
    Koueryaauuddititomf tahtetefrisnaanrecitahlossteatemmaettnetrssotfhatht,eicnuorruernpt ryoefaers.sioTnahlesjeudmgamtteenrts, wweerreeaodfdmresossetdsiignntihfiecacnocnetexint
    
    pofroovuirdeauadisteopfarthateefionpainncioianl ostnattehmeseentms aasttearws.hWolee, daentderimn ifnoermthinegfoolulor wopiningisonartehekreeyona,uadnidt mwaettdeorsnoint
    
    need of communication in our report.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    AUDITORS’ REPORT - continued
    
    De Shi Bao (Shen) Zi (19) No. P02452
    
    (Page 2 of 5)
    
    3. Key Audit Matters - continued
    
    Impairment assessment of certain long-term assets1. Item description
    
    PAisonseteartedWiinneNoCteomIVpan“yImLpiamirimteedntRoefselaorncgh-tearnmd aDsseevtse”lo, ptmheenPt roCdou.c,tioLntd.of("YRa&ntDai CCehnatnrge"y)u,
    
    msuobrseidtihaarny 6o0f%theofCtohmepGarnoyupas’swperloldausctaionnewinm20ai1n8.pArosduact t3io1nDbeacseemobfetrhe20C1o8m, tphaenyb,ooackcvoaulnutessfoofr
    
    alomnogu-tnetremd atosseRtsMinBcl3u.d5inbgilfliixoend, aascsceotus,ntcionngstfrourcti2o6n.6i%n porofgtrheesstoantadl ianstsaentgsibilne tohfe"Rco&nDsolCideantterde
    
    Afinsatnhceirael isstaltiettmleesnptsa,cewhfoicrhtheexedretvsesloigpnmifeicnatnotfinthfeludenocmeesotnicthweinceonmsaorlkideat,tetdhefimnaanncaigaelmsteantetmofenthtse.
    
    Casosmetsp.aTnyhefamcaensaggreematenotppeerarftionrgmsprtehsesuimrepsaiwrmithenctetretsatinbyridsektseromf iinminpgaiirfmtheentreocfovreelraatbelde laomnogu-tnetrmis
    
    lpersessethnat nvathlueeboofokexvpaelucteedoffulotunrge-tecramshafslsoewtss.anInd tdheeteermstiimneastethoefrtehceovperreasbelnet avmalouuenot fbafusetudreoncathshe
    
    fthloewssa,letshegrmowantahgreamtee,nftuitsurreeqsuelilriendgtporimcea,kperosidguncitfiiocannctojsutd, goepmereantitnsginexthpeenassessumanpdtiodnisscoinucnltudrainteg.
    
    aFuodritthmeaatbteorv.e reasons, we identified the valuation of the impairment of long-term assets as a key2. How our audit addressed the key audit matter
    
    Our procedures in relation to the key audit matter mainly included:
    
    (1) cToensttroalnrdelaetveadlutaotethethvealeufafteicotnivoefntehses imofpathiremednetsiogfnloanngd-teimrmplaesmseetnst;ation of the internal
    
    (2) Resetivmieawteaonfdtheevaplrueasteentthvealrueeasoofneaxbpleencteesds fouftukreeycaasshsufmlopwtisoinns tahnedimjupdagiremmeennttsteustsebdasiendtohne
    
    ithnewhhiiscthortihcealCroecmoprdansyofoptheeraCteosm. pany and our understanding of the business and industry(3) Ufloswinsgdoiuscroiunntetrmnaoldveallpuraetpioanresdpbecyiathliestms,arneavgieewmienngt athnedathpeprroaptiroiantaelniteyssofofthtehedifsuctouurentcraasthe
    
    used;(4) dPiesrcfoourmntinfugtutrheecareshcafllcouwlastimonodpelr.ocedure, checking the accuracy of calculations in the
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    AUDITORS’ REPORT - continued
    
    De Shi Bao (Shen) Zi (19) No. P02452
    
    (Page 3 of 5)
    
    4. Other Information
    
    iTnhfoermmaatnioang.emTheentotohferYiannfotarimaCthioanngcyoumpPriiosneseetrheWininfoermCaotmiopnainnycluLdimeditiend thise YreasnptoanisCibhlaengfoyru o2t0h1e8r
    
    annual report, but does not include the financial statements and our auditor's report thereon.
    
    Oanuyr fooprminioofnaosnsutrhaencfeincaonnccialul ssitoantetmheernetosnd.oes not cover the other information and we do not express
    
    iInnfocromnanteicotnioanndw, iitnh doouirngausdo,itcoonf stihdeer fwinhaentchiearl tshteatoemtheenr tisn,foorumr arteiospnoinssimbialtietyriailslytoincroeandsisttheentowthiethr
    
    tmheissftiantaendc.ial statements or our knowledge obtained in the audit or otherwise appears to be materially
    
    Ioft,hberasinedfoormnatthieonw, owrekawreerheqavueirepdertfoorrempeodr,t twhaetcfoanctc.ludWe ethhaatvtehenroethisinag mtoarteeprioarlt ministhstiastreemgeanrdt.of this
    
    5. SRteastpeomnesnibtsilities of the Management and Those Charged with Governance for the Financial
    
    TprheepamraatinoangeamndenfatiropfreYseannttaatiionChoafntghyeufinPainocnieaelrstaWteimneenCtsoimn paacncoyrdLainmceitewdithisArcecsopuonntsinibgleStafonrdatrhdes
    
    fnoerceBssuasriynetossenEanbtleerptrhiesefsi,naanncdialdsetsaitgenminegn,tsitmhaptleamreenfrteinegfraonmdmmaateinritaalinminisgstaintetemrneanlt, cwohnetrthoel rtdhuate tios
    
    fraud or error.
    
    CInomprpeapnayri’nsgabthileityfintoanccoianltisntuaeteamseantgso, itnhge cmoanncaegrne,mdeinsctloissirnegs,poasnsaipbplelicfoabr laes, smesastitnegrsYrealnattaeidCtohagnoginygu
    
    lcioqnucideranteaYndanutasiinCghtahnegyguoiCngomcopnanceyrnorbtaosicseaosfeaocpceoruantitoinngs,uonrlehsasvethneomraenalaigsteimc eanltterenitahtievreinbtuetntdos dtoo
    
    so.
    
    rTehpoosretincghaprrgoecdesws.ith governance are responsible for overseeing Yantai Changyu Company’s financial
    
    6. Auditor's Responsibilities for the Audit of the Financial Statements
    
    aOruerfroebejefcrotimvems aarteeritaol ombitsasitnatreemaseonnt,abwlheeathsseurrdaunecetoabfroauutdwohreetrhreorr,thanedfitnoainscsiuael asntataeumdietnotrs'sarsepaowrthtohlaet
    
    ginucalruadnetseeotuhratopaninaioundistocloenlydutocteydouin. Racecaosrodnaanbclee wasitshurCanhcineaiSs taanhdiagrhdsleovnelAoufdiatsinsugrawniclle,albwuatyissdneotetcat
    
    ammataetreiarilalifm, iisnsdtaivteidmueanlltywohreninit tehxeisatsg.gMreigsasttaet,emtheenytsccoaunldarriesaesfornoamblfyrabued oerxperercotredantdoairneflcuoennscideerthede
    
    economic decisions of users taken on the basis of these financial statements.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    AUDITORS’ REPORT - continued
    
    De Shi Bao (Shen) Zi (19) No. P02452
    
    (Page 4 of 5)
    
    6. Auditor's Responsibilities for the Audit of the Financial Statements - continued
    
    AjusdgpmaertntoafndanmaauindtiatininpraocfecsosridoannacleskwepitthiciCsmhintharoSutganhdoaurtdtsheoanudAitu.dWitienagl,sow: e exercise professional
    
    (1) Itodefnrtaiufyd aonrdearrsoser,ssdethseigrnisaknsdofpemrfaotermrialaumdiiststpartoecmeednutreosf rtehsepofinnsainvceiatlostthatoesme ernistsk,s,wahnedtheorbtdauine
    
    anuodt idteetvecidtienngcea tmhaatteirsiaslumffiicsisetantteamnedntaprepsruolptriniagtefrtoomprforavuiddeisa hbiagshiserfothraonufroorpoinneiorne.suTlhtiengrisfkroomf
    
    oervreorrr,idaes ofrfaiundtemrnaayl cinovnotrlovle. collusion, forgery, intentional omissions, misrepresentations, or the(2) Oprbotcaeidnuraens uthnadtearsrteanadpipnrgoporifatientienrnthale cciorncturmolstraenlecvesa,nbt uttontohtefoarudthite ipnuroprodseer otfoexdpesreigsnsinagudaint
    
    opinion on the effectiveness of the internal control.(3) eEsvtiamluaatteestahnedarpeplarotepdridaitsecnleosssuroefsamccaoduenbtiyngthpeomliacnieasgeumseednta.nd the reasonableness of accounting(4) aCcocnoculnutdinegoanndth, ebaaspepdroopnriathteenaeussditofevtihdeenmceanoabgteamineendt,'swuhseethoerf athme agteoriinagl ucnocnecretranintbyaseixsisotsf
    
    areblialtietyd ttooceovnetnintsueorascoangdoitiinognscothnactermn.ayIfcwasetcsoignncliufidceantthadtoaubmt aotneriYalanutnacieCrthaainntgyyeuxCisotsm, pwaenyar’es
    
    rsetaqtueimreednttsoodr,raifwsuacthtendtiisocnlosinureosuraraeuidniatdoer'qsuraetpe,ortot tmootdhiefyreoluarteodpidniisocnl.osuOreusr icnonthcelusfiionnanscairael
    
    ebvaseendtsoonr tchoendauitdioitnsevmidaeyncceauosbetathineedYaunptatioCthheandgayteu oCfoomupraanuydittoorc'searseepotort.conHtinouweevasera, fguotiunrge
    
    concern.(5) tEhveadluisactelotshuereos)v,earanldl wprheestehnetrattihoen,fisntaruncctiualrestaantedmceonntsternetporefstehnet tfhineaunncdiaelrlsytiantegmtreanntssac(itniocnlusdainndg
    
    events in a manner that achieves fair presentation.(6) oOrbtbauinsinsuesffsicaiecntitvaitpiepsrowpriitahtienatuhdeitYevaindteani cCehraenggayrduinCgotmhepafinnyantcoiaelxinpfroesrms aatnionopoifnitohne eonntittihees
    
    fgirnoaunpciaauldsitta.tWemeernetms.ainWsoelealrye rreessppoonnssiibbllee ffoorr othuer dauirdeicttioopni,nisounp.ervision and performance of the
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    AUDITORS’ REPORT - continued
    
    De Shi Bao (Shen) Zi (19) No. P02452
    
    (Page 5 of 5)
    
    6. Auditor's Responsibilities for the Audit of the Financial Statements - continued
    
    sWcoepceoamnmd utinmiciantge owfitthhethaousdeit cahnadrgseigdnwifiicthangtoavuedrintafnicnedirneggsa,ridnicnlgu,dainmgoanngyostihgenrifmicaatntetrds,eftihceiepnlcainesneidn
    
    internal control that we identify during our audit.
    
    Wetheicaalslorepqrouviriedmeethnotsserecghaarrdgiendgwinitdhepgeonvdeernnacnec, eanwdithtoa csotamtemmuennitcathteatwwiethhathveemcoamllplrieeldatwiointhshrieplsevaanndt
    
    roetlhaetredmsaatfteegrsuatrhdast. may reasonably be thought to bear on our independence, and where applicable,
    
    wFreorme othf emmosatttseirgsncifoimcamncueniicnatthede wauidthittohfostheechfianragnecdiawl istthatgeomveenrntsanocfet,hwe ecudrerteenrtmyienaertahnodseamreatthteerrseftohraet
    
    tphreeckluedyesaupduibt lmicadttiesrcsl.osurWe eabdoeustctrhibeemthatetseer omrawttehresn,ininoeuxrtraeumdietloyr'srarreepcoirrtcuumnlsetsasncleasw, wore rdeegtuerlamtiionne
    
    twhoatuladmreaatsteornsahbolyulbdeneoxtpbeectceodmtomouuntiwcaetiegdhitnheouprubrelipcoirnt tbeerecsatubseentehfeitasdovfesrsuechcocnosmeqmuuennicceastioofn.doing so
    
    Deloitte TSohuacnhgehTaio,hCmhaintsau CPA LLP Chinese Certifi(eEdngPaugbelimceAnctcpoaurntntaern)t: Xie Yanfeng
    
    Chinese Certified Public Accountant: Li Yangang
    
    18 April 2019
    
    CONSOLIDATED BALANCE SHEETS Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018
    
    ASSETS Notes 31/R12M/2B018 31/R12M/2B017
    
    CUCRaRshEaNnTd AbaSnSkETS VI-1 1,475,700,477 1,402,522,509
    
    NInoctleusdianngd: aNcoctoeusnrtescreeicveaibvlaeble VVII--22.2 52308,88,2661,70,79188 250484,,759963,,187138
    
    PrepaymeAnctscounts receivable VVII--23.3 2442,,121539,,908493 2623,,741967,,935315
    
    IOntchleurdrinecge:iIvnatbelreesst receivable VVII--44.2 221,,363326,,608816 18,294780,,946282
    
    INnovne-nctuorrrieesnt assets held for sale VI-5 2,724,591-,457 2,4723,,060104,,104976
    
    Other current assets VI-6 ____2_5_8_,6_7_6_,_3_9_6 ___2__30_,_8_2_2_,7__59_
    
    Total current assets _5_,_0_1_6_,6_4_5_,_4_3_6_ __4_,6__38__,9_4_9_,_03__7
    
    NOANv-aCilUabRleR-fEoNr-TsaAleSfSinEaTnScial assets VI-7 467,251 467,251
    
    FInixveesdtmasesnettsproperties VVII--89 5,74931,7,53172,6,46879 5,32198,,048637,,998699
    
    CBeoanrsetrrubcitoiolongiincaplraosgsreetsss VVII--1101 270599,,229666,,357913 1,200216,,912491,,858689
    
    GInotaondgwibillle assets VVII--1132 615655,,419793,,411519 612585,,413485,,898917
    
    DLoenfegr-rteedrmtaxpraespsaeitds expenses VVII--1154 ___2_28_54_,44_,63_46_0,_2,_45_91_6 ____2330_08_,_,01_02_19_,,_2339__61
    
    Total non-current assets _8_,_1_0_1_,0_8_3_,_6_1_6_ __7_,_8_9_7_,8_0_6_,_1_71_
    
    Total assets 1_3_,_1_1_7_,7_2_9_,_0_5_2_ _1_2_,_5_36_,_7_5_5_,2__0_8
    
    CONSOLIDATED BALANCE SHEETS Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018 - continued
    
    LIABILITIES AND EQUITY Notes 31/R12M/2B018 31/R12M/2B017
    
    CUSRhRorEt-NteTrmLIbAoBrroILwIiTnIgEsS VI-16 688,002,410 714,434,286
    
    RNeocteesipatnsdinacacdovuannctsepayable VVII--1187 71223,65,70725,8,28414 635606,,849424,,815796
    
    ETamxpelsopyaeyeabbelneefits payable VVII--1290 12218,29,13204,7,92017 211405,,802944,,213564
    
    OIntchleurdpinagy:aIbnletesrest payable VI-21 608,47719,28,98206 603,773715,,525609
    
    DeferredOintchoemr peayables VVII--2212.2 60175,7,86670,0,26544 61062,,897684,,131999
    
    Non-current liabilities due within one year VI-23 ____1_5_2_,9_4_0_,_7_8_8 ___1__10__,9_5_4_,_8_27_
    
    Total current liabilities _2_,_7_4_6_,1_4_8_,_4_7_4_ __2_,8__1_9_,2_5_8_,_3_06_
    
    NONLo-CngU-RteRrmENboTrrLoIwAiBngILsITIES VI-24 156,480,662 156,125,854
    
    DLoenfegr-rteedrminpcoaymaebles VVII--2225 27205,,306070,,003090 29592,,901008,,085005
    
    DOtehfeerrrneodnt-acxulriraebnitliltiiaebsilities VVII--2156 _____2_27_,,02_13_40_,,_68_45_37 _____24_7,_,22_60_94_,,_321_0_23
    
    Total non-current liabilities ____4_8_1_,0_9_3_,_2_0_1 ____53__9_,5_1_8_,2_2_4_
    
    Total liabilities _3_,_2_2_7_,2_4_1_,_6_7_5_ __3_,_3_58_,_7_7_6_,5_3_0_
    
    CONSOLIDATED BALANCE SHEETS Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018 - continued
    
    LIABILITIES AND EQUITY Notes 31/R12M/2B018 31/R12M/2B017
    
    EQSUhIaTreYcapital VI-27 685,464,000 685,464,000
    
    OCathpeitraclormesperrevheensive income VVII--2298 5625,,996555,,344717 5653,,195059,,424410
    
    RSuertpailnuesdreesaerrnviengs VVII--3310 _8_,_0_03_84_2,9_,78_32_2,_5,_04_07_0 __7_,3_30_49_2,,_07_38_12_,,0_60_1_80
    
    EquitoyfatthteribCuotmabplaentyo shareholders 9,606,099,365 8,906,342,299
    
    Non-controlling interests ____2_8_4_,3_8_8_,_0_1_2 ___2__71__,6_3_6_,_37_9_
    
    Total equity _9_,_8_9_0_,4_8_7_,_3_7_7_ __9_,_17_7__,9_7_8_,_6_78_
    
    Total liabilities and equity 1_3_,_1_1_7_,7_2_9_,_0_5_2_ _1_2_,_53_6_,_7_5_5_,2__0_8
    
    The accompanying notes form an integral part of these financial statements.
    
    The financial statements on pages 6 to 107 were signed by the following:
    
    Legal Representative PerAsocncoinunCtihnagrgBeoodfythe Chief AccountantBALANCE SHEET OF THE COMPANY Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual ReportYEAR ENDED 31 DECEMBER 2018
    
    ASSETS Notes 31/R12M/2B018 31/R12M/2B017
    
    CUCRaRshEaNnTd AbaSnSkETS XIV-1 624,588,809 559,174,466
    
    NInoctleusdianngd: aNcoctoeusnrtescreeicveaibvlaeble XXIIVV--22.2 3491,,388335,,225274 4419,,644505,,250363
    
    PrepaymeAnctscounts receivable XIV-2.3 1,447,927237 7,89095,,637333
    
    OIntchleurdrinecge:iIvnatbelreesst receivable XIV-3 1,025,265443,,038568 999,87466,,664463
    
    InventoriesDividend receivables XXIIVV--34.2 358050,,105040,,074000 344078,,049452,,092532
    
    NOtohne-rcucurrrernent tasassestestsheld for sale _____2_4_,7_0_4_-,_8_4_4 _____292_,_,70_00_06_,,1_05_97_8
    
    Total current assets __2_,_1_0_1_,4_2_5_,_2_0_3 __1_,9_8_8__,3_1_9_,_62_6_
    
    NOLNon-Cg-UteRrmREeNquTitAySinSvEeTstSments XIV- 5 7,420,803,069 4,511,202,204
    
    FInixveesdtmasesnettsproperties XVIIV-8- 6 26531,3,5117,22,74489 28188,,145670,,990891
    
    CCoonnssttrruuccttiioonn iinn pprrooggrreessss XXIIVV-- 87 1265,,031012,,779031 1196,,575762,,354399
    
    DInetafenrgriebdletaaxssaestssets XXIIVV-- 910 2647,,129444,,906676 6298,,768273,,291079
    
    Other non-current assets XIV- 11 ___9_7_2_,7_0_0_,_0_0_0_ __3_,_7_1_8,_6_7_4_,1_6_6_
    
    Total non-current assets _8_,_9_1_3_,1_4_0_,_3_5_9_ __8_,_7_6_1_,2_3_5_,_2_74_
    
    Total assets 1_1_,_0_1_4_,5_6_5_,_5_6_2_ _1_0_,_7_49_,_5_5_4_,9_0__0
    
    BALANCE SHEET OF THE COMPANY Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018 - continued
    
    LIABILITIES AND EQUITY Notes 31/R12M/2B018 31/R12M/2B017
    
    CUSRhRorEt-NteTrmLIbAoBrroILwIiTnIgEsS XIV- 12 150,000,000 600,000,000
    
    NAodtveasnacneds farcocmoucnutsstopmayearbsle XIV- 13 132,704,3-04 967,,803030,,100204
    
    TEmaxpelsopyaeyeabbelneefits payable XXIIVV-- 1154 7132,,134115,,413791 7104,,150698,,067906
    
    OIntchleurdpinagy:aIbnletesrest payable XIV- 16 607,918714,,521509 545,635625,,560702
    
    Deferred inOctohmerepayables XIV- 16.2 ____6_0_37_,,74_39_33_,,_20_65_49 ____54_4_3_,,79_15_33_,,_015_7_42
    
    Total current liabilities ____9_7_9_,5_6_8_,_4_8_7 __1_,_3_37_,_8_2_9_,6__16_
    
    NODNef-eCrUreRdRinEcNomTeLIABILITIES 8,910,918 12,628,573
    
    Other non-current liabilities XIV- 14 ______2_,7_1_0_,_5_7_5 ______2_,5_7_7_,_70__2
    
    Total non-current liabilities _____1_1_,6_2_1_,_4_9_3 ____1_5__,2_0_6_,_27__5
    
    Total liability ____9_9_1_,1_8_9_,_9_8_0 __1_,3__53__,0_3_5_,8_9_1_
    
    EQSUhIaTreYcapital VI-27 685,464,000 685,464,000
    
    SCuarppitlaulsrreesseerrvvee XVIIV-3-017 534527,,272322,,040540 534527,,272322,,400504
    
    Retained earnings _8_,_4_3_7_,9_5_7_,_1_2_8_ __7_,8_1_1_,_1_0_0_,_55_5_
    
    Total equity 1_0_,_0_2_3_,3_7_5_,_5_8_2_ __9_,3_9_6__,5_1_9_,0_0_9_
    
    Total liabilities and equity 1_1_,_0_1_4_,5_6_5_,_5_6_2_ _1_0_,_7_4_9_,5_5_4_,_9_0_0
    
    CONSOLIDATED INCOME STATEMENT Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018
    
    Notes R20M1B8 R20M1B7
    
    I. RevenuLeess: Cost of sales VVII--3322 15,,914012,,624141,,750470 41,,693721,,554952,,222799
    
    TSealxliensganexdpseunrscehsarges VVII--3343 1,227764,,549991,,164764 1,231702,,255222,,402433
    
    RAedsmeainrcishtraantidvedeevxepleonpsmesent expenses VI-35 343,45,78084,6,51118 3364,,436201,,182353
    
    FIninclaundciinagl :eIxnpteenressetsincome VI-36 315,29,4058,63,00207 198,,519608,,275792
    
    (Reversal oIfn)tIemrepsatiermxpeenntsleosss of assets VI-37 46,(395142,,910626) 286,,209953,,548573Add: IOncthoemrein(cloosms)efrom disposal of assets VI-38 ____8171__,,32_68_81_,,34_5_354_ ____46_(2_,02_32_8,_5,3_88_64_)II. OpAedradt:inNgopnr-oofpiet rating income VI-39 1,404,77,3954,32,39079 1,31576,,232308,,571227
    
    Less: Non-operating expenses VI-40 _____3_,5_3_5_,9__0_8 ____1__,6_3_1_,4_7__6III. PLroefsist:bIenfcooremteaxtax VI-41 1_,3_40_6_87,,_61_12_71_,,56_9_228__ _1_,3_3_731_8_,,19_23_47_,,72_64_35_IV. Profit for the year 1_,_04_1_,_4_8_4_,_17_6__ _1_,_0_3_3_,7_9_3_,_51_8_
    
    (1I.)NCeattepgroofriitzefrdombyctohnetninautuinreg oofpecoranttiionnusing operation 1_,0__41_,_4_8_4_,_1_76__ _1_,0__33_,_7_9_3_,5_1_8_
    
    (1I.I)PrCoaftiet goorrliozsesdabttyriobwutnaebrlsehtiop:non-controlling interests (1,148,753) 2,098,462
    
    2. Net profit attributable to owners of the Company 1_,_04__2,_6_3_2_,_92__9_ _1_,_03__1,_6_9_5_,_05__6V. Other comprehensive income (post-tax) _____(_3_7_6_,5_2_4_) _____9_,_8_6_3_,8_7_2
    
    OthtoershcaormehporeldheernssoivfethinecComomepaattnryibutable
    
    Othtoerbceormecplareshsiefniesdivteoipnrcoofmiteand loss
    
    OtFhoerreciogmn cpurerrheenncsyivsetaitnecmomenet atrtatrnisbluattaiobnledifference (143,863) 8,368,254
    
    to non-controlling interest _____(2_3_2_,_6_6_1_) _____1,_4_9_5_,6_1_8_VI. Total comprehensive income 1_,_0_41_,_1_0_7_,_6_5_2_ _1_,_04_3_,_6_5_7_,3__9_0
    
    AAttttrriibbuuttee ttoo snhoanr-echoonltdroerlslinogf tihneteCreosmt opfanthye Company 1_,0_4_(2_1,_,43_88_91_,,0_4_616_4_) _1_,0_4_0_3,_,50_96_34_,,3_08_1_00VII. Earni(nIg)sBpaesricsheaarrenings per share VI-42 _________1_.5_2_ _________1_.5_1_
    
    (II) Diluted earnings per share VI-42 _________N_/_A_ _________N_/_A_
    
    INCOME STATEMENT OF THE COMPANY Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018
    
    Notes R20M1B8 R20M1B7
    
    I. RevLeensus:eCost of sales XXIIVV--1188 877746,,444877,,007310 11,,316115,,925536,,845048
    
    TAadxmesinaisntdrastuivrceheaxrpgeensses XXIIVV--2109 3908,,534065,,726081 7769,,517109,,123255
    
    FRineasneacriaclheaxnpdendseevselopment expenses XIV-21 (20,289827,7,33575) 1,563773,,590689
    
    Including: IInnteterreessttienxcopmeneses 1416,,087215,,335723 1178,,641024,,118919Add:IInncvoemstem(elnotssin) cforommedisposal of assets XIV-22 9641,21,24811,6,95962 798,(82797,6,92055)
    
    Other income _____4_,2_3_7_,_65_5_ ____5_,_2_1_9_,1__26_
    
    II. OpAedradt:inNgoPn-roopfietrating income 9731,2,9418,37,42878 791,467860,,064165
    
    Less: Non-operating expenses ______5_9_3_,_6_9_4 ______3_3_5_,2__37_III. PLroefsist:bIenfcooremteaxtax _9_7_4_,_41_,58_19_2,_5,91_23_9_ __(_71_9,7_17_,86_2,_51_8,_462_)_4IV. Profit for the year __96__9,_5_8_8_,_57__3_ __7_9__3,_5_9_8_,_0_1_0
    
    Net profit from continuing operations __96_9_,_5_8_8_,_5_7_3_ ___7_93_,_5_9_8_,0__10_V. Total comprehensive income _9_6_9__,5_8_8_,_5_7_3_ __7_9_3__,5_9_8_,_01_0_CONSOLIDATED CASH FLOW STATEMENT Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual ReportYEAR ENDED 31 DECEMBER 2018
    
    Notes R20M1B8 R20M1B7
    
    CACSaHshFrLecOeWiptSs FfrRomOMtheOsPaEleRoAfTgIoNoGdsACTIVITIES
    
    Reacnediptthseorfetnadxerreinfugnodfsservices 4,95507,,600536,,260970 4,85273,,115926,,952160
    
    Other cash receipts relating to operating activities VI-43(1) ___7_2_,7_0_3_,8_7_2_ ____8_5_,2_3_6_,9_0_5
    
    Sub-total of cash inflows from operating activities _5_,0_8_0_,3_6_3_,7_6_9_ __4_,9_6_5_,5_8_6_,3_4_1
    
    CCaasshh ppaayymmeennttss tfooragnodoodns bpeuhrcahlfaosefdemanpdlosyeervesices received 1,538434,,974452,,293743 1,154132,,874707,,981155
    
    OPathymerecnatsohfpvaayrmioeunststyrpeelastoinfgtatxoeosperating activities VI-43(2) _11_,,01_16_13_,,79_18_60_,,43_19_97_ __11_,,02_76_04_,,98_11_03_,,95_89_86
    
    Sub-total of cash outflows from operating activities _4_,1_0_4_,3_8_5_,0_2_3_ __3_,9_9_2_,3_4_3_,3_1_4
    
    Net cash flows from operating activities VI-44(1) __9_7_5_,9_7_8_,7_4_6_ ___9_7_3_,2_4_3_,0_2_7
    
    CACSaHshFrLecOeWiptSs FfrRomOMdisIpNoVsaElSsTanINdGrecAoCvTerIyVoITf IinEvSestments 400,000,000 205,000,000
    
    PNreotcceaesdhsrfercoemiprtestfurronmondiisnpvoessatlms eonftfsixed assets, 3,445,895 4,084,350
    
    intangible assets and other long-term assets ____1_9_,9_6_7_,4_3_1 _____7_,5_9_4_,0_0_5
    
    Sub-total of cash inflows from investing activities __4_2_3_,4_1_3_,3_2_6_ ___2_1_6_,6_7_8_,3_5_5
    
    Caisnhtapnagidibfloeraassceqtusisaintidonotohferplroonpge-rtteiersm, palsasnettss and equipment, 347,384,820 435,960,357
    
    CCaasshh ppaayidmfeonrttshteopaucrqcuhiarseeinsuvbesstimdieanritess and other equity VI-43(3) __4_17_08_,50_,84_32_4,4_,60_05_5 __2_39_07_,31_,72_99_6,2_,51_64_3
    
    Sub-total of cash outflows from investing activities __9_3_1_,2_6_1_,8_7_5_ __1_,0_3_6_,8_8_6_,1_1_6
    
    Net cash flows from investing activities _(_5_07_,_8_48_,_54_9_)_ __(_82_0_,_20_7_,7_6_1_)
    
    CACSaHshFrLecOeWiptSs FfrRomOMcaFpiItNalAcNonCtIrNibGutiAonCsTIVITIES 2,050,000 48,396,726
    
    Infcrolumdimngin: ocraistyh orewcneieprtssoffrosmubcsiadpiiatrailecsontributions 2,050,000 48,396,726
    
    OCathsherrceacsehiprtescferiovmedbforrormowfiinnganscing activities VI-43(4) __1_,0_64_92_,,84_16_58_,,24_15_19 ___9_56_23_,,59_36_40_,,86_00_04
    
    Sub-total of cash inflows from financing activities __1_,1_1_4_,3_3_3_,6_7_0 __1_,0_6_4_,8_9_2_,1_3_0
    
    CCaasshh ppaaiidd ffoorr bdoivrirdoewnidnsg,sprofits and interests 13,19073,3,15819,8,41039 387669,,579012,,228743
    
    Cash paid from other financing activities VI-43(5) ____4_6_,1_0_0_,0_0_0 ____6_1_,7_0_0_,0_0_0
    
    Sub-total of cash outflows from financing activities _1_,5_4_6_,6_4_1_,2_2_2_ __1_,3_0_7_,9_9_3_,5_5_7
    
    Net cash flows from financing activities _(_4_32_,_3_07_,_55_2_)_ __(_24_3_,_10_1_,4_2_7_)
    
    Effoenctcaosfhfoarnedigcnasehxcehqaunivgaeleranttes changes (9,851,585) 14,013,131
    
    NAENTDINCCARSEHAESQEU(DIVEACLREENATSES) OF CASH 25,971,060 (76,053,030)
    
    Add: cash and cash equivalents at beginning of the year VI-44(3) __1_,1_8_0_,8_8_9_,2_7_4 __1_,2_5_6_,9_4_2_,3_0_4
    
    CASH AND CASH EQUIVALENTS AT END OF THE YEAR VI-44(3) __1_,2_0_6_,8_6_0_,3_3_4 __1_,1_8_0_,8_8_9_,2_7_4
    
    CASH FLOW STATEMENT OF THE COMPANY Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018
    
    Notes R20M1B8 R20M1B7
    
    CACSaHshFrLecOeWiptSs FfrRomOMtheOsPaEleRoAfTgIoNoGdsACTIVITIES
    
    Othanerdcthasehrerencdeeirpintsgreolfastienrgvitcoesoperating activities __18_17_77_,,37_84_61_,,31_72_25_ ___94_38_14_,,19_80_33_,,04_89_29
    
    Sub-total of cash inflows from operating activities __9_9_5_,1_2_7_,4_9_7_ __1_,4_1_6_,0_8_6_,5_8_1
    
    CCaasshh ppaayymmeennttss ftooragnodoodns bpeuhrcahlfaosefdemanpdlosyeervesices received 61008,72,24516,4,45241 38998,,889274,,074729
    
    OPathymerecnatsohfpvaayrmioeunststyrpeelastoinfgtatxoeosperating activities ___67_24_,,03_56_76_,,34_42_49_ ___21_20_71_,,93_71_77_,,18_26_74
    
    Sub-total of cash outflows from operating activities __8_5_1_,9_2_1_,6_6_6_ ___8_1_8_,0_1_6_,8_1_2
    
    Net cash flows from operating activities XIV-23(1) __1_4_3_,2_0_5_,8_3_1_ ___5_9_8_,0_6_9_,7_6_9
    
    CACSaHshFrLecOeWiptSs FfrRomOMdisIpNoVsaElSsTanINdGrecAoCvTerIyVoITf IinEvSestments 370,000,000 103,000,000
    
    NPreotcceaesdhsrfercoemiprtestfurronmondiisnpvoessatlms eonftfsixed assets, 874,520,633 827,218,467
    
    intangible assets and other long-term assets ____1_1_,2_1_2_,1_9_5 ____2_6_,7_6_0_,9_2_9
    
    Sub-total of cash inflows from investing activities __1_,2_5_5_,7_3_2_,8_2_8 ___9_5_6_,9_7_9_,3_9_6
    
    Caisnhtapnagidibfloeraassceqtusisaintidonotohferplroonpge-rtteiersm, palsasnettss and equipment, 28,842,911 22,527,073
    
    CCaasshh ppaayidmfeonrttshteopaucrqcuhiarseeinsuvbesstimdieanritess and other equity __4_11_00_,70_,10_90_4,0_,40_02_0 ___81_80_51_,,00_05_06_,,20_02_00
    
    Sub-total of cash outflows from investing activities __5_4_6_,0_3_7_,3_3_1_ __1_,0_0_8_,5_8_3_,2_9_3
    
    Net cash flows from investing activities __7_0_9_,6_9_5_,4_9_7_ ___(5_1_,_60_3_,8_9_7_)
    
    CACSaHshFrLecOeWiptSs FfrRomOMboFrrIoNwAinNgCsING ACTIVITIES ___2_0_0_,0_0_0_,0_0_0 ___6_0_0_,0_0_0_,0_0_0
    
    Sub-total of cash inflows from financing activities ___2_0_0_,0_0_0_,0_0_0 ___6_0_0_,0_0_0_,0_0_0
    
    CCaasshh ppaaiidd ffoorr dboivrirdoewnidnsg,sprofits and interests ___63_65_04_,,00_08_50_,,30_01_02 ___35_63_00_,,35_63_09_,,66_00_40
    
    Sub-total of cash outflows from financing activities __1_,0_1_4_,0_8_5_,3_1_2 ___8_9_0_,9_0_0_,2_0_4
    
    Net cash flows from financing activities __(_81_4_,_08_5_,3_1_2_) __(_29_0_,_90_0_,2_0_4_)
    
    NEATNIDNCCRAESAHSEEQOUFIVCAALSEHNTS 38,816,016 255,565,668
    
    Add: cash and cash equivalents at beginning of the year XIV-24 ___4_9_3_,5_6_8_,8_6_6 ___2_3_8_,0_0_3_,1_9_8
    
    COAFSTHHEANYDEACRASH EQUIVALENTS AT END XIV-24 ___5_3_2_,3_8_4_,8_8_2 ___4_9_3_,5_6_8_,8_6_6
    
    CONSOLIDATED SATATEMENT OF CHANGES IN EQYUanItaTiYChangyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018
    
    Attributable to shareholders of the Compan2y018
    
    cIsaspuietadl sCuarppiltuasl Other cionmcopmreehensive Sreusreprlvues Reaertnaiinngeds Noni-nctoenretrsotslling Total
    
    RMB RMB RMB RMB RMB RMB RMB
    
    I. 1/1/2018 _6_85_,4_6_4,_00_0 _5_65_,9_5_5,_44_1 __3,_10_9_,24_0_ __3_42_,7_3_2,_00_0 _7,3_0_9,_08_1_,61_8_ _27_1,_63_6_,3_79_ _9_,1_77_,9_78_,6_7_8
    
    II. (CI)hTanogtaelscfoomr tphreehyeenasrive income - - (143,863) - 1,042,632,929 (1,381,414) 1,041,107,652
    
    (reIId)uOctwionnerisn’ccaopnittarilbutions and
    
    sAucbqsuidisiaitriioens o(Vf III-2) - - - - - 17,532,823 17,532,823
    
    (III)DPisrtorfiibtudtiisotnrsibtuotion
    
    shareholders (VI-31, VIII-2 )_____-__ _____-__ _____-__ ______-__ _(_34_2_,7_32_,0_00_) __(3_,3_99_,7_76_) _(_34_6,_13_1_,7_76_)III. 31/12/2018 _6_85_,4_6_4,_00_0 _5_65_,9_5_5,_44_1 __2_,9_6_5,3_7_7 __3_42_,7_3_2,_00_0 _8_,0_08_,9_82_,5_4_7 _2_84_,3_8_8,_01_2 _9_,8_90_,4_87_,3_7_7
    
    Attributable to shareholders of the Compan2y017
    
    cIsaspuietadl sCuarppiltuasl Other cionmcopmreehensive Sreusreprlvues Reaertnaiinngeds Noni-nctoenretrsotslling Total
    
    RMB RMB RMB RMB RMB RMB RMB
    
    I. 1/1/2017 _6_85_,4_6_4,_00_0 _5_65_,9_5_5,_44_1 __(5_,2_59_,0_14_) _3_42_,7_3_2,_00_0 _6_,6_20_,1_18_,5_6_2 _1_90_,4_7_3,_69_7 __8,3_9_9,_48_4,_68_6
    
    II. (CI)hTanogtaelscfoomr tphreehyeenasrive income - - 8,368,254 - 1,031,695,056 3,594,080 1,043,657,390
    
    (reIId)uOctwionnerisn’ccaopnittarilbutions and
    
    cNoonnt-ricbounttiroonlling interests' capital - - - - - 78,236,726 78,236,726
    
    (III)DPisrtorfiibtudtiisotnrsibtuotion
    
    shareholders (VI-31) _____-__ _____-__ _____-__ _____-__ _(_34_2_,7_32_,0_00_) ___(6_68_,1_24_) _(_34_3,_40_0_,1_24_)III. 31/12/2017 _6_85_,4_6_4,_00_0 _5_65_,9_5_5,_44_1 __3_,1_09_,2_40_ _3_42_,7_3_2,_00_0 7_,3_0_9,_08_1,_61_8_ _27_1,_63_6_,3_79_ _9_,17_7_,9_78_,6_78_STATEMENT OF CHANGES IN EQUITY OF THE COMYPanAtaNi CYhangyu Pioneer Wine Co. Ltd. 2018 Annual ReportYEAR ENDED 31 DECEMBER 2018
    
    Issued capital Capital reserve Surpl2u0s1r8eserve Retained earnings Total
    
    RMB RMB RMB RMB RMB
    
    I. 1/1/2018 _6_85_,_46_4_,0_0_0 _5_57_,_22_2_,4_5_4 _3_42_,_73_2_,0_0_0 _7_,8_1_1,_10_0_,5_5_5 __9_,3_9_6,_51_9_,0_0_9
    
    (III.) CThoatanlgceosmfoprrethheenyseiavre income - - - 969,588,573 969,588,573
    
    (II) ProfDitisdtirsitbruibtiuotniosnto shareholders (VI-31_)_____-__ ______-__ ______-__ _(_34_2_,7_3_2,_00_0_) __(3_4_2_,7_3_2,_00_0_)
    
    III. 31/12/2018 _6_85_,_46_4_,0_0_0 _5_57_,_22_2_,4_5_4 _3_42_,_73_2_,0_0_0 8_,4_3_7_,9_57_,_12_8_ _1_0_,0_2_3,_37_5_,5_8_2
    
    Issued capital Capital reserve Surpl2u0s1r7eserve Retained earnings Total
    
    RMB RMB RMB RMB RMB
    
    I. 1/1/2017 _6_85_,_46_4_,0_0_0 _5_57_,_22_2_,4_5_4 _3_42_,_73_2_,0_0_0 _7_,3_6_0,_23_4_,5_4_5 _8_,9_4_5,_65_2_,9_9_9
    
    (III.) CThoatanlgceosmfoprrethheenyseiavre income - - - 793,598,010 793,598,010
    
    (II) ProfDitisdtirsitbruibtiuotniosnto shareholders (VI-31_)_____- __ ______- __ ______-__ _(3_4_2_,7_3_2,_00_0_) _(3_4_2_,7_3_2,_00_0_)
    
    III. 31/12/2017 _6_85_,_46_4_,0_0_0 _5_57_,_22_2_,4_5_4 _3_42_,_73_2_,0_0_0 7_,8_1_1_,1_00_,_55_5_ _9_,3_9_6,_51_9_,0_0_9
    
    NOTES TO FINANCIAL STATEMENTS Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    YEAR ENDED 31 DECEMBER 2018
    
    I. CORPORATE INFORMATION
    
    Ylimanitteadi Ccohmanpgaynuy PinioanceceorrdWanincee wCioth., tLhted.C(otmhepa"nCyomLapwanoyf")thweaPseoinpcloe'rspoRreapteudblaics oaf jCohinint ast(othcke
    
    "CPoRmCp"a)nyin"),ainreworhgiacnhizCahtiaonngycuarGrireodupouCtobmypYanayntianijeCctheadncgeyrutaiGnraosuspetsCaon.,dLlitadb. i(li"tCiehsainngryeulatGiornoutpo
    
    tChoembpraannydya,nwd iintse,suabnsdidsiapraireksli(nthgew"Ginreouppro")duarcetiopnrinacnipdasllayleesngbaugseindeisnsetshetoprtohdeuCctoiomnpaanndy.saleTshoef
    
    dweivneel,opbmraenndty, ,etcsp. a.rkRleinggistrwatiinoen, pglaracpeeofgrthoewiCnogmapnadnyaicsqYuiasnittiaoin, ,Shaasndwoenlgl . aHseatdraqvuealrterresoofurthcee
    
    Company is located at No. 56 Da Ma Lu, Zhifu District, Yantai, Shandong, PRC.
    
    APlseaaste3r1efDerectoemNboeter 2V0I1-287thine dtoettaalil.shares issued by the Company amounts to 685,464,000 shares.
    
    TYhaenthaiolGdiunogFceonmg pIannvyesotmf tehnet GHrooludpinigs LCthda,nIgLyLuVGArouSpARCOomNpNaOny,HwOhLicDhINisGjoSinPtlAy, cIonntetrronlaletidonbayl
    
    Finance Corporation and Yantai Yuhua Investment and Development Company Limited.
    
    AThcecofridnianngcitaol thsetatCemomenptasnyh'savaertibceleesn oafuathssooriczieadtiobny, ththeefibnoaanrcdialofstadtiermecetnotrss woinll 1b8e rAevpireilwe2d01b9y.
    
    shareholders on the shareholder's meeting.
    
    FFoorr cdoentasiolliodfatciohnansgceospeinofcotnhseoyliedaart,iopnleassceopreefeorf ttoheNoyteearV, IpIlIe"aEsequrietfyerintootNheorteenVtiItIies""Chinandgeetaiiln.
    
    consolidation scope".
    
    II. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
    
    1. Basis of preparation
    
    tThhee MGrionuisptryhasofadFoipntaendcethe("AMcocFou")n.tinIng Satdadnidtiaornd,s tfhoer BGursoinuepsshEasntedripscrilsoessed("AreSleBvEa"n)t isfsinuaendcibayl
    
    OinfffoerrminagtioSneciunritaicecsotrodathnecePuwbiltihc NInofo. r1m5a-tiGonenDeriaslclPorsouvreisiaonnds oPnreFseinnatantciioanl RReupleosrtifnogr (CRoemvipsaendieins
    
    2014).
    
    2. Basis of accounting and principle of measurement
    
    tThheepGrirnocuipplehaosf amdoepasteudretmheenatcicnrutahlebfaisniasnocifaal csctoatuenmtienngt.s.TWhehGerreouapssaedtsopartse tihmephaiisretodr,icparlovcoissitonass
    
    for asset impairment are made in accordance with relevant requirements.
    
    iUnncdaesrhthanedhicsatsohriceaqlucivoasltemntesaasturtheme deantte, aonf athseseptuisrcmhaesaes.uLreiadbailtittyheisfamirevasaulureedofatctohnesivdaelruaetioofnapsasiedt
    
    rceacsehivaendd tcharsohuegqhutiavkailnegntscuvrarleunet eosbtliimgaattieodnf,otrherecpoanytirnagctdvebaltuien fdoariltyakbiunsginceusrsreancttivoibtlyi.gation, or the
    
    II. BASIS OF PREPARATION OF FINANCIAL STAYTaEntMai CEhNanTgySu P-iocnoenertiWniuneedCo. Ltd. 2018 Annual Report
    
    2. Basis of accounting and principle of measurement - continued
    
    oFradirervlyalutreanissatchteiopnribceetwtheaetnwmoualrdkebtepraerctieciivpeadnttsoasteltlheanmaesasseutroermpeanitddtaotet,rarnesgfaerrdlaeslisaboifliwtyhienthaenr
    
    mthaetaspurriecme eisntdairnedc/tolyr doibsscelorvsaubrelepourrpeosstiems aitnedthuesseincgoannsootlhideartevdalfuiantaionnciatel cshtantieqmuee.nts Fisaidrevtearlmueinfeodr
    
    on such a basis.
    
    Finapirutvsatlouethme efaaisrurveamlueenmtseaarseurceamteegnotrsisaerde oinbtsoerLveavbelel 1an, d2 tohre 3sigbnasifeidcaonncethoef tdheegrineeputtos wtohtihceh ftahier
    
    value measurement in its entirety, which are described as follows:
    
    1) Lliaebvielliti1esinthpautttsheareentqituyocteadn apcrciceesss a(ut nthaedjmusetaesdu)reimn eancttidvaetem; arkets for identical assets or
    
    2) Lobesveerlva2blienpfourtsthaereassinetpuotrsl,iaobtihlietry,tehiatnherqudoirteecdtlyproicreisndiinrcelcutldye;danwdithin Level 1, that are
    
    3) Level 3 inputs are unobservable inputs for the asset or liability.
    
    3. Going concern
    
    mAsonatths31andDedciedmnboetrn2o0ti1c8e,atnhye eGveronut porecviarlcuuamtesdtanthcee pthroatfiwtaobuillidtycoabnisltiittyuteinsitghneiffiocarenstedeaobulbet o1n2
    
    ggooiinngg ccoonncceerrnn baabsiilsit.y of the Group. Therefore, the financial statements have been prepared on a
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
    
    1. Declaration for implementing CAS
    
    vTiheewfoinfatnhceiafilnsatnacteiaml epnotssitaioren opnre3p1arDedecienmabcecro2rd0a1n8c,efiwnainthciCalApSe,rfworhmicahncsehoanwdincgasah tfrluoewainnd20fa1i8r
    
    of the Company and the Group.
    
    2. Accounting year
    
    The accounting year of the Group is from 1 January to 31 December of each calendar year.
    
    3. Business cycle
    
    BcausshineeqsusivcaylcelnetsrebfyertshetoCothmeppaenryio. dThferobmuspinuerscshacsyicnlge oafsstehtesCtoombepapnryocises1s2edmtoontrhesc.eiving cash or
    
    4. Reporting currency
    
    aRnednmitisnbdio(m"ResMtiBc "s)uibsstihdeiacriuersreonpcyeraotfe.thTehperriemfoarrye,ecthoenoCmoimc peannvyiroannmdenittsindowmheicshticthseuCbsoimdipaarineys
    
    cEhuoroo,seCRhiMleaBnaPsetshoeairndfuAncutsiotrnaalilacnuDrroelnlcayr .asOtvheerisrefausnscutibosnidaliacruiersreonfcitehseoCnotmhepabnaysisadoofptht eCpurrirmenacryy
    
    setcaotnemomenictse. nvironment in which they operate. The Company adopts RMB to prepare its financial
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    5. Business combination
    
    5.1Business combinations not involving enterprises under common control and goodwill
    
    cAombbuisnianteiossn icnowmhbiicnhataiollnofnothte icnovmolbviinnigng eenntteerrpprriisseess aurnedneort ucoltmimmaotenly ccoonnttrroollleids bay tbhuessinaemses
    
    party or parties before and after the combination.
    
    gTihveenc,olsitaboiflictioems binincuatriroend iosr tahsesuamggerde,gaanted oeqf uthitey fsaeicruvriatliuesesi,ssautetdhebyactqhueisaictqiouniredratien, eoxfcthhaengaessfeotsr
    
    lceognatlrosleorfvitcheesa, cvqauliureaeti.oTnheanindtecrmonesduilatraynceyxpesenrsveisceins,cuerrtce.d banydtheotahceqruiarsesroicniarteesdpeacdtmofinaiusdtriatitnivge,
    
    ienxcpuernreseds. attributable to the business combination are recognised in profit or loss when they are
    
    Qacuqauliisfiietidonidaerentmifeiaabsluereadsusestisn,g lfiaaibrivliatileuse aatntdhecaocnqtiunigsietniotnldiaabteil.ities obtained by acquirer in the
    
    iWdehnetriefiathbelecnoestt aosfsectosm, tbhienadtiioffnereexncceeediss ttrheeataecdqausirearn’sasisnetet raenstdirnecthoegnfiazierdvaalsuegooofdtwhiella, cwqhuiicrehe’iss
    
    minetearseusrteidn atht ecofsatirovnaliuneitioafl trheceoagcnqiutiiorene.’Ws ihdeernetitfhiaebcleosnteotfascsoemtsb, itnhaetiaocnquisirleerssfirthstalny trheaesasceqssueisretrh’es
    
    lmiaebaisluitrieesmeanntd omf etahseurfeamirenvtaloufesthoef ctohset aocfquciormeeb’isnaidtieonnt.ifIiafbaleftearsstehtast, rleiaabssileistisemseannt,d thceonctionsgteonft
    
    cnoemt absisneattsi,ontheisasctqilul ilreesrsrtehcaongnthizeeasctqhueirreerm’saiinntienrgesdtifinferthenecfeaiirmvmaleudeiaotfeltyheinacpqruoifriet eo’rs liodsesntfiofiratbhlee
    
    current period.
    
    Gloossoedsw, ailnldairsispinregseonntead sbeupsairnaetseslycionmthbeincaotinosnoliisdamteedafsiunraendciaatl sctoasttemleesnstsa.ccumulated impairment
    
    6. Preparation of consolidated financial statements
    
    6.1 Preparation of consolidated financial statements
    
    Tcohnetrsoclo.pCeoonftrcoolnissotlhideaptioowneirntothgeocvoenrsnotlhideafteindanficniaanl cainadl sotapteermateinngtspiosldiceiteesrmofinaendeonntetrhperisbeassios oasf
    
    tfoacotsbtaanind bciernceufmitsstafrnocmesirtsesoupltesraintincghaancgtievsitiinesr.eTlehveanGtrofaucptowrsililnrveo-elvveadluiantethief cahbaonvgeedseifninrietiloevnaonft
    
    control.
    
    lCoossnsooflicdoanttiroonl oofnstuhbessiduibasriydisatrayrtbsyfrtohme Gthreoucpo.ntrol on the subsidiary by the Group and ends at the
    
    cFoonrtrtohle, thsuebrseisduialtrsieosf tohpreoruagtihonbsuasnindescsashcofmlobwinsaftrioomn nthoet aicnqvuoilsvitiniogn ednatyerwpreirseespruonpderelry cinocmlumdoend
    
    in the consolidated income statements and consolidated cash flow statements.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    6. Preparation of consolidated financial statements - continued
    
    6.1 Preparation of consolidated financial statements - continued
    
    dTehteermsiignneidficbaanstedacoconunthtiengunpifoolricmiesacacnoduntaicncgoupnotliincgiespearnioddsacacdooupntteindg bpyertihoedsssuebtsioduiatribeys tahree
    
    Company.
    
    All significant intra-group balances and transactions are eliminated on consolidation.
    
    nTohne-cpoonrttrioolnlinogfinstuebressidtsiaarnieds'preeqsuenittyedthaast"nisonn-cootntartotrlliibnugtaibnlteeretosts"thien tChoemcpoannsyolidisatetrdeabtaeldancaes
    
    ashtteriebtuwtaibthlein stoharneohno-ldcoernst'roelqluinitgy. iTnhteerepsotrstioins opfrneesetnptreodfitsasor"lnoossne-scoonftrsoulblisnidgiariinetserfeosrtst"he ipneritohde
    
    consolidated income statement below the net profit line item.
    
    sWubhseindiathrye eaxmcoeuendts othfelonsosn-fcoorntthroellpinegriosdhaaretthroiblduetarbs'lepotortiothneonfotnh-ecoonpteronlilninggbashlaanrceehooldfeorswnoefrsa'
    
    equity of the subsidiary, the excess amount are still allocated against non-controlling interests.
    
    7. Cash and cash equivalents
    
    eCqausihvacloenmtspraisreesthceasGhroounp'hsasnhdoratn-tdermde,phoisgithslythlaiqtucidaninbveesrtemaedniltys twhaitthadrreawrenadoinlydceomnavnedrt.ibCleastho
    
    known amounts of cash and which are subject to an insignificant risk of changes in value.
    
    8. Translation of transactions and financial statements denominated in foreign currencies
    
    8.1 Transactions denominated in foreign currencies
    
    Aratefoorenigthnecduartreenocfythteratnrasnacsaticotnionis. recorded, on initial recognition, by applying the spot exchange
    
    eAxtcthhaenbgaelarnacteesshaetetthdeateb,aflaonreciegnshceuertrendcayte.mEonxecthaarnygietemdisffaerreentrcaensslaarteisdinigntofrRomMBthuesidnigfftehreenscpeost
    
    breectwogeneintiotnheorspatottheexpcrheavnigoeusrabtaelsanpcerevshaeileint gdaatet atrhee rebcaolagnnciesedshienetprdoafitte oarnldossthfoosrethoenpienriitoidal,
    
    feoxrceeipgtn tchuartre(n1c)yetxhcaht aqnugaelifdyifffoerrecnacpeistalrieslaattieodn atore acasppiteacliifsiecd-pausrppoasret obfotrhreowcoinsgt odfetnhoemqiunaaltiefdyining
    
    athseseptudruproinseg othfehceadpgiitnaglisaagtaioinnstpeforiroedig; n(2c)uerxrecnhcayngreiskdsiffaerreenaccecsourneltaetdedfotrouhseindgginhgedignestarucmcoeunnttsinfogr;
    
    f(3o)reiegxnchcaunrrgeencdieifsfearnednccehsanagriessinign tfhroemcararvyainilgabalem-foourn-stsaloef naovnai-lmabolnee-ftaorry-sailteemmsondeetnaorymiinteamtesdarine
    
    recognised as other comprehensive income and included in capital reserve.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    8. Translation of transactions and financial statements denominated in foreign currencies - continued
    
    8.2 Translation of financial statements denominated in foreign currencies - continued
    
    Ffoorreigthneoppuerrpatoisoen oarfeptrraenpsalraintegd tfhroemcothnesofloidreaitgend cfuinrraenncciyalinsttoateRmMeBntsu,sifningatnhceiaflolsltoawteimngenmtsethoof da:
    
    absaslaentsceansdhelieatbidlaittiee;s sohnartehheobldaelarns'ceeqsuhietyet iateremtsraenxsclaetpetdfaotr threetasipnoetdeexacrhnainngges raartee tprraenvsalailtiendg aatt tthhee
    
    swpeoltl eaxscihteamngsereraflteecstiantgththeeddatiestsriobnutwiohnicohf spurochfitisteamres tarraonssela; taeldl iattemthse isnpothteexincchoamngeesrtaatteesmoenntthaes
    
    odaf ttehseopfrtehveioturasnysaecatri'sonrse;tatihneedopeeanrinnigngbsa;lathnececloofsirnegtaibnaeldanecaernoifngrestaisintehde etraarnnsinlagtsedisccloaslcinuglabteadlaanncde
    
    dprifefseernetnecde obnetwtheeenbathsies troafnselaacthedtraasnsseltasteadndinthcoemaeggsrteagtaetmeeonft laianbdiliptireosfitanddisstrhiabruethioonldeitresm' e.qTuihtye
    
    sitteamtesmeisntssepdaernaotemlyinaptreedsenintedfoarseigthne ceuxrcrheanncgiees doiffferoetnhceers caormisipnrgeheonnsitvreansilnactioomneofunfdinearnctihael
    
    shareholders' equity in the balance sheet.
    
    sCuabsshidfialorywsareartirsainngslaftreodmatathterasnpsoatcteixocnhainngfeorraetiegnoncuthrreendcayte aonfdthtehecacshashflofwlosw. s Tohf eaefffoercetigonf
    
    pexrecsheanntgede sreaptearacthealnygiens thoen ccaasshhflaonwd sctaatsehmeeqnut iavsal"eenftfsecitsorfeegxacrdheadngeasraatercehcoanngcielsinogn icteamsh aanndd
    
    cash equivalents".
    
    aTmheouonptesniinngthbeaplarenvcieosuasnydeathr'es cfionmanpcairaaltisvtaetefimguenretss.of previous year are presented at the translated
    
    9. Financial instruments
    
    Fcoinnatrnaccitaulaalspserotsviasniodnfsinoafnctihael liinasbtirluitmieesnta.reFirneacnocginailseadsswethsenantdhefiGnarnocuipalbelicaobmilietsiesa paraertyintiotiatlhlye
    
    mincealusduereddinatthfeaiirrinviatliuale.reFcoorgnoitsheedrafminoaunnctisa.l assets and financial liabilities, transaction costs are
    
    9.1 Effective interest method
    
    Tfinhaenecfifaelctliivaebiilnittyere(sotrmaetghroodupis oafmfeinthaondcioalf caaslsceutslatoinr gfitnhaenacmiaol rltiiasebdilictoiesst)oafnadfionfanaclilaolcaastisnegt otrhae
    
    einffteercetsivteinicnotmereesotrrianteteriessttheexpraetnesethoavteerxtahcetlryeledvisacnotupnetrsioeds,tiumsaintegdthfeuteufrfeecctaivseh ifnltoewresstthraroteu.ghTthhee
    
    ethxepencettecdarlirfyeinogf atmheoufinntaonfcitahleafsisneatnocirafliansasnectiaolr lfiianbainlictiyalolri,abwilhietyre. appropriate, a shorter period to
    
    Wconhternacctaulaclultaetrimngs tohfe tehfefecfitnivaenciniatleraessstertatoer, tfhineaGncroiaulplieasbtiimlitayte(swfiuthtuoruetccaoshnsfildoewrisngcofnustiudreerincrgedalilt
    
    tloostshees)f,iannadncailasloacsosentsiadnedrsfianllanfeceiaslplaiaidbiolirtyretcheaitveadrebaentwineetengrthale ppaarrttioesf tthoetheeffceocntitvreacitngteivreinstgrraitsee,
    
    transaction costs, and premiums or discounts, etc.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    9. Financial instruments - continued
    
    9.2 Classification, recognition and measurement of financial assets
    
    iOnncluindiitniagl friencaongcniaitlioanss,etthseaGt fraoiurpv'salfuineatnhcrioaulgahsspertosfiatreorcllaossssi,fiheedldi-ntoto-moanteuroiftythinevfeosutmr ecnattesg, oloriaenss,
    
    fainndanrceicaelivaasbseletss,aarendreacvoaginlaibseled-faonr-dsadleereficnoagnnciisaeldaossnetas. trAaldleredgautelarbawsiasy. TphuerchGarsoeusp'osr fsinaalenscioafl
    
    aascsceotusntairneg btoraungshatctiinona dcaoten.veFnitnioanncalialwaayss,etasndofretchoegnGizreodupanadretelromaninsataenddacreccoerdivinabgletso atnhde
    
    available-for-sale financial assets.
    
    9.2.1 Loans and receivables
    
    tLhoaatnasreanndot rqeucoeitvedabilnesanaraectnivoen-mdearrikveatt.ivFeinfainncainacliaaslsaestssectlsaswsiiftihedfiaxsedlooanr sdaentedrmreicneaibvlaeblpeasybmyetnhtes
    
    Group include cash and bank, notes and accounts receivable and other receivables, etc.
    
    Lmoeathnosda.nGdarienceoirvalbolsess aarriesinsgubfsreoqmuendtelryecmogeansituiroend, aimt pamairomrteisnetdocroastmuosritnisgattihoen eifsfercetciovgeniinsetedreisnt
    
    profit or loss.
    
    9.2.2 Available-for-sale financial assets
    
    Ainvitaiiallabrelec-ofgonr-istiaolen faisnaanvcaiiallabalseseftosrinsaclleu,deanndonfi-ndaenricviaatlivaessfeitnsanthcaiat laaressentost tchlaatssairfeieddeasisgnfiantaendcioanl
    
    assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
    
    Fanodr iwnhvoesstemfaeinrtsvainlueeqcuaintynoitnbsterurmelieanbtlsythmaetadsournedo,t thhaevyeaareqmuoetaesdurmedaraktectopsrti.ce in an active market
    
    9.3 Impairment of financial assets
    
    TthhoeseGarot ufpairasvsaelsuseesthatroeuagchh bparolafnitceorshloesest.dIaftethtehreeciasrroybinjegctaimveouenvtisdeonfcfeintahnactiaal faisnsaentcsiaolthaesrsethtains
    
    fiminpanaicrieadl,asthseetGisroimuppadireetderims ienveisdetnhceeatmhaotu, natrisoifnganfyromimopnaiermorenmtolroeses.veOnbtsjetchtaivt eocecvuirdreendcaefttehratthae
    
    rineliitaiabllyremcoegansiutrioedn,ohfatvheebaesesneta, ftfheecteesdt.imated future cash flows of the financial asset, which can be
    
    Objective evidence that a financial asset is impaired includes the following observable events:
    
    ((12)) SAigbnriefiaccahntoffincaonnctiraalcdtifbfyicuthltey obfortrhoewisesru, esruocrhoabsligaord;efault or delinquency in interest or
    
    (3) pTrhinecGipraoluppa,yfmorenetcso; nomic or legal reasons relating to the borrower's financial difficulty,
    
    (4) gItranbteicnogmaincogncpersosbioanblteo tthheatbotrhroewbero;rrower will enter bankruptcy or other financial
    
    reorganisations;
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    9. Financial instruments - continued
    
    9.3 Impairment of financial assets - continued
    
    (5) Tdihffeicduilstiaepspoefarthaneciessuoefr;an active market for that financial asset because of financial
    
    (6) tUhperoen iasn aovmereaalsluarsasbelsesmdeecnrteaosfea ignrotuhpe oefstfiminaatnecdialfuatsusreetsc, aosbhsefrlvoawbslefrdoamta itnhdeicgartoeuspthoaft
    
    fyientanbceiaidleanstsiefitesdsiwnicteh tthhee iinnidtiiavlidruecalogfinniatinocniaolfatshsoetsse iansstheets,graoltuhpo.ughSuthceh doebcsreeravsaeblceandnaotat
    
    -includesA:dverse changes in the payment status of borrower in the group of assets;
    
    - Efacilounroemtoicpcaoyntdhietigornosuipnotfheascsoeutsn;try or region of the borrower which may lead to a
    
    (7) Sinigwnihfiiccahntthaedviessrsueerchoapnegraetsesin, itnhdeicteactihnngoltohgaitcatlh,emcaorksteto, fectohneominivcesotrmleengtalinentvhieroneqmueintyt
    
    (8) Ainstsriugmniefnictamntayonropt rboelorencgoevderdeedcbliynetheinintvheestofar;ir value of an investment in an equity
    
    iinnssttrruummeenntt binevloewstmitesnctosist; mnaomreeltyh,aant t5h0e%b(ainlacnlucesivshee)eitndaetxec,eisfsthoef itnhietiaflacirosvtaolufeanofeqsuuicthy
    
    ienxvceesetdmsetnhte, foarir tvhaelupeeorifosducihn iwnvheiscthmtehnet iisnoitviaelr c1o2smt oonf thans(ienqculuitsyivein);strument investment
    
    (9) Other objective evidence indicating there is an impairment of a financial asset.
    
    - Impairment of financial assets measured at amortised costaIfssfeitnsanacreialreadsusceetsd ctaorrtiheed patreasmenotrtvisaeludecoofsteastriemiamtepdaifruedtu,rethecacsahrrfyloinwgsa(mexoculnutdsinogf tfhuetufrienacnrecdiaitlrloatses.es thTaht ehaavmeonuontt boefenreidnuccutriroend)isdisrceocougnnteidsedat athseafninaimncpiaailrmasesnett'sloosrsigiinnalpreofffietctoivreloinstse.reIsft,tshuebrseeqisueonbtjteocttihvee reevciodgennicteionofoaf arneciomvpearyirminenvtallousesoofntfhienafnincaianlcaiaslseatsssceatsrrwiehdicaht acmanorbtieserdelcaotestd,iombjpeacitrimveelnyt tloosasniserveevnetrsoecdc.uHrroinwgevaeftre,rththeereivmeprsaairlmisenmtaidserteocothgeniesxetde,ntthtehaptrtehveiocuasrlryyirnegcoagmnoisuendtocofstthwe ofiunladnhcaiavleabseseent hatadthtehedaimteptahiremimenptaniromt beenetnisrerceovgenrsieseddd. oes not exceed what the amortisedFor a financial asset that is individually, the Group assesses the asset individually for impairment.- Impairment of available for sale assets measured at cost
    
    aIf qanuoitmedpapirrmiceentinlosasnhaacstibveeenmianrckuertr)edwohnosaen finaivresvtamlueent cinanunnoqtuboetedreeliqaubiltyy imnsetarsuumreedn,t (owr itohnouat
    
    deqeuriivtyatiivnestrfuinmanencita, lthaessceatrtrhyaint gisalminokuendt toof atnhde fminuasntcbiael saeststleetdisbyredduelcievdertyo otfhesupcrhesaenntuvnaqluuoeteodf
    
    easstsiemt.atedThfuetuarme ocuansht oflfowresdudcisticoonunitsedreactogthneisceudrraesntanmaimrkpeatirramteenotf lroestsurinn fporroafitsiomrillaorssf.inanTcihael
    
    impairment loss on such financial asset is not reversed once it is recognised.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    9. Financial instruments - continued
    
    9.4 Transfer of financial assets
    
    cTohnetrGacrtouuapl rdiegrhetcsotgonitsheescaasfhinfalnocwiaslfarossmetthifeofnineanocfiathleasfsoelltoewxipnigre;coonrd(i2ti)onthseisfinsaatnicsfiaielda:ss(1et) hthaes
    
    btreaennsfterrarnesdfetroretdheantrdanssufbesrteaen;tioarlly(3a)llaltthheourigshksthaendfinreawncairadlsaosfseotwhnaesrsbheiepnotfratnhsefefirnreadn,citahleaGssreotuips
    
    nasesitehtebruttrhanassfneorst rneotarinreetdaicnosnstruoblsotafntthiaellfyinaanllcitahlearsissekts. and rewards of ownership of the financial
    
    dFiofrferaentrcaensbfeetrweoefna(1f)intahnecciaalrraysinsegt aimnoiutsnteonftitrheteyfitnhaantcisaaltiassfiseest ttrhaensdfeerrreecdo;gannitdio(n2)ctrhiteersiua,mthoef
    
    trheceogconnisseiddeirnatoitohnerrceocemivperedhefnrosmivetihnecotmraen,sfiserreacnodgnaisneyd icnumpruolfaittiovrelogsasi.n or loss that has been
    
    9.5 Classification, recognition and measurement of financial liabilities
    
    Donebtht eanbdaseisquoiftythienssturubmstaennctse iosfsutehde bcoyntthraecGturaoluaprraarnegecmlasesnitfsieadndintdoeffiinniatinocniaslolfiafbinilaitniceisalorliaebqiuliittyy
    
    and equity instrument.
    
    tOhnrouingihtiaplrorfeictoogrniltoiossn,anfidnaontchiearl fliinaabnilciitaielsliaarbeilictileass.siTfihede fiinntaoncfiianlanlicaibalililtiiaebsiliintiegsroautpfaairre voathlueer
    
    pfianyaanbclieasl, nlioanb-ilciutirerse,ntinlicalbuidliitniegs dshuoerwt-tiethrmin obnoerryoewarinagnsd, lnoontge-sterpmaypaabylea,blaecsceotuc.nt payables, other
    
    9.5.1 Other financial liabilities
    
    mOtehtherodfi,nwanitchiaglaliinaboirliltoiesss aarriesisnugbsfreoqmuednetlryecmogenasituiroendoartaammoorrtitsisaetidoncorsetcuosginnigsetdheinepffreocftiitvoer ilnotsesr.est
    
    9.6 Derecognition of financial liabilities
    
    oTbhleigGatrioonup(odrepraerctoogfniits)eiss adisfcinhaanrgceiadl. liability (or part of it) only when the underlying present
    
    WbethweneenthethGerocuaprrydienrgecoagmnoisuenst aoffintahneciafilnalinacbiiallityliaobrilaitypar(torofpiatr,t itofrectohgenifsiensantchiealdilfifaebrielnitcye)
    
    dfienraenccoiganl ilsiaebdiliatnieds athsseumcoends)idinerpartoiofint opraliodss(.including any non-cash assets transferred or new
    
    9.7 Offsetting financial assets and financial liabilities
    
    aWssheetrseatnhde fGinraonucpiahlalsiaabilleitgiaels,riagnhdt itnhtaetnidssceuirtrheenrtltyo esentftolercoenabalenetot bseatsiosf,fotrhteorreecaolgisneistehde ffiinnaanncciiaall
    
    absesoetffasnedt asnedttltehethneeftinaamnocuianltliisabpirleitsyenstiemduilntatnheeoubsallya,ncaefisnhaenecti.aEl xacseseptt afondr tahefinabanocviealcilriacbuimlistytasnhcaelsl,
    
    nfiontabnecioalffassest.ets and financial liabilities shall be presented separately in the balance sheet and shall
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    9. Financial instruments - continued
    
    9.8 Equity instruments
    
    aAfntereqdueidtyucitninstgruamlleonft iitss alinaybicliotinetsr.acTthtehaGtreovuipdednoceessnaotrerseicdouganlisinetearneystchinanthgeesaisnsetthseoffaitrhevaGlureouopf
    
    equity instruments. The equity instruments transaction expenses deducted from equity.
    
    TeqhueityGrisounpottarfefaetcsteddisbtryibsuhtairoendtiovideeqnuditydisitnrsibtruutmede.nt holders as profit distributions. Shareholder
    
    10. Accounts Receivable
    
    rTehceeivGarboluesp abreeliienvdeisvidthuaatllythetesitneddivfiodruiaml praeicremiveanbt,leasndareindailvl idsiuganlifrieccaongt,niatinodn tmheethcoodrreisspuosneddintgo
    
    confirm bad debt provision.
    
    11. Inventories
    
    11.1 Categories of inventories
    
    ITnhveenGtorroiueps'sarienvineinttioalrliyesmmeaasinulryedinactlucdoest.raCwosmt aotferiinavlse,ntworoireks icnompprorigsreesssalalncdosftisnioshf epdurgcohoadses.,
    
    lcoocsatstioonf acnodnvceornsdioitnioann. d other expenditures incurred in bringing the inventories to their present
    
    Agricultural products harvested are reported in accordance with the CAS 1 Inventories.
    
    11.2 Valuation method of inventories upon delivery
    
    The actual cost of inventories upon delivery is calculated using the weighted average method.
    
    1v1al.u3eBoafsiinsvfeonr tdoertieersmining net realisable value of inventories and provision methods for decline in
    
    IAfttthhee nbeatlarnecaelissahbeleet vdaaltuee, iinsvebnetloorwiesthaerecomsetaosfuriendveant ttohreielso,waerproofvcisoisotnafnodr ndeetcrleinaelisianblvealvuaeluoef.
    
    ibnuvseinnetosrsielesssisthmeaedset.imNaettedrecaolisstasbolfecvoamlupeleitsiotnh,etheestiemstaimteadtesdelclionsgtspnreicceesisnartyhetoomrdaikneartyhecosaulreseanodf
    
    traekleevsanintttoaxceosn. sidNereattiroenalitshaeblpeuvrpaoluseesisodfehteorlmdiinngedinovnenthtoeribeassiasnodf ecflfeeacrt eovfidpenocste boabltaaninceeds,haenedt
    
    events.
    
    Pinrvoevnistoioryn ofvoerr ditescnlientereianlisvaabllueevaolfueotbhaesredinovnencatoterigeosriiess omfaidnevebnatoserides.on the excess of cost of
    
    Aprfetveriouthsley pcraouvsiesdioninvfeonrtodreiecslinteo bine vwarliutteenofdoiwnvnenbteolroiwes ciosstmnaodel,onifgetrheexcisirtcsuomsthtaantctehse tnheatt
    
    risearleivsaebrsleedvaanludethoef rinevveernstaolriiessinisclhuidgehderinthparnoftiht eoirr lcoossst,fothr ethoeripgeirniaold.provision for decline in value
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    11. Inventories - continued
    
    11.4 Inventory count system
    
    The perpetual inventory system is maintained for stock system.
    
    11.5 Amortisation method for low cost and short-lived consumable items and packaging materials
    
    Pimacmkeadgiiantge wmraittee-roiaflfsmaentdholdo.w cost and short-lived consumable items are amortised using the
    
    12. Non-current assets held for sale
    
    Nreoconv-ceursrrethnet absosoekts vaanldueditshproosuaglhgarosuaplse a(rineccluladsisnigfieadn aesxchhealdngfeorosfanleoncmatoegnoetrayrywahsesnettshethGatrohuaps
    
    commercial substance) rather than continuing use.
    
    Nfoollno-wcuinrrgenctonadsisteiotsnso: r(1d)isthpeosaaslsegtroorupdsispcolassaslifgireodupasishaevladilafobrlesfaolre imarme erdeiqauteiresadletoinsiatstispfryesethnet
    
    gcoronudpit;io(2n)stuhbejescatleoinslyhigtohltyerpmrosbtahbalte,arie.e.utshuealGarnodupcuhsatsommaardye faorressaolleustioonf saubcohutassesleltinogr pdliasnpoasnadl
    
    yoebatari.ned a confirmed purchase commitment and the sale is expected to be completed within one
    
    TlohweerGorofutphemireacsaurrryeisngtheamnoou-cnutrraenndt faasisretvsaloure dliesspsocsaolstgsrotoupsselcl.laWsshifeiered tahse hcealrdryfionrg saamleoautntthies
    
    thhigehneert tahmanoutnhteonfeftaairmvoaulnute olefsfsacirosvtaslutoe sleelsls, acnodstssutcohsreelld,uccatiroryninisgraemcoogunnizt esdhoinulidmbpeairremdeunctedlotsos
    
    hofeldas-fsoerts-saalned ainsscelutsdeadreinmparodfei.t oWrhleonss tfhoerretheispeinricordea. sMe eiannwthheilen,eptroavmisoiuonnt foorf imfapiraivrmaleunet ooff
    
    snhoonu-cldurbreenrtevasesresetsdhienldimfpoarisrmaleenlteslosscsoosftsatsosestesllreactotghneizbeadlaanfcteersthheeect ldaassteif,icthaetioonrigoifnhael ldde-fdourc-tsiaolne
    
    category, and the reverse amount is include in profit or loss for the period.
    
    aNmoonr-tciuzrarteionnt . assets held for sale in non-current assets are not subject to depreciation or
    
    13. Long term equity investments
    
    13.1 Basis for determining control, joint control and significant influence
    
    bCeonnetfriotsl ifsrotmhe iptsowacetrivtiotiegso.vJeornintthceonfitnroanl ciisalthaendcoonpteraracttiunagllypoalgicrieeesdosfhaanrinegntoitfy csoontarsoltoovoebrtaainn
    
    reecloantionmgitcoatchteivaitcyt,ivaitnydreexquisitrse othnelyuwnahneinmothues sctorantseegnitcoffintahnecipaalrtaiensd sohpaerirnagtincgonptorolilc.ySidgenciifsiicoannst
    
    ibnuftluiesnncoetiscothnetrpool woerrjotoinptacrtoincitproalteoivnerthtehfoisneanpcoilailciaensd. oWphereantindgetepromliicnyindgecwishioenthseorfatnheininvveestsitnege
    
    penotteernptriaislevoistinagblreigthotseoxfertchieseincvoenstteroel (foorr seixganmifipclaen, twianrfrlaunetnscaendovceornvanertiinbvleesdteeeb,ts)thheeledffbeyct thoef
    
    investing enterprises or other parties that are cYuarnrteainCtlhyangeyxuePriocniseearbWleineoCro.cLotdn.v20e1r8tiAbnlenuaslhRaelplortbe
    
    considered.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    13. Long term equity investments - continued
    
    13.2 Determination of initial investment cost
    
    Finovresatmloenngt-tceorsmt oefqtuhietyloinngv-etsetrmmeneqt uaictqyuiinrvedesntmotenintvisoltvhiencgoesnt toefrparciqsuesisiutniodne.r common control, the
    
    eAxupdeint sfeede,inlepgraolfistesravnicdelso,scseosnswuhlteinnghafepepsenaendd. other related management costs in acquisition are
    
    Oortihgeinrallocnogs-tt.erm equity investments acquired from other than acquisitions are recognised using
    
    13.3 Subsequent measurement and recognition of profit or loss
    
    13.3.1 Long-term equity investment accounted for using the cost method
    
    iTnhveesGtereouthpataicscocounnttrsoflloerdlboyngth-teerGmroeuqpu.ity investment using the cost method. A subsidiary is an
    
    LUonndge-rtetrhme ecqoustitymientvheosdt,maenltonisga-tdejrumsteedquwithyenincvaepsittmaleinstaidsdemdeoasrurreecdolaletcitnedit.iaIlnvinevstemstemnet nint ccoomste.
    
    idsisrtericbougtnioisnesddiencltahreedpbeyriothdeiinnvaecsctoered.ance with the attributable share of cash dividends or profit
    
    13.4 Disposal of long-term equity investments
    
    rOenceidviesdpoasnadl roefceaivalobnleg atnedrmtheeqcaurirtyyiningvaemstomuenntti,s trheecodginfifseerdenicneprboeftiwt oeernlosthsefoprrtohceepeedrsioadc.tually
    
    14. Investment properties
    
    Investment property is property held to earn rentals or for capital appreciation or both.
    
    iAnnveisntvmeesntmt epnrot pperrotpyeratrye isinmclueadseudreidn itnhietiaclolystatofcotshte. Sinuvbessetqmueenntt epxroppeenrdtyituirfesitiniscuprrreodbafbolre stuhcaht
    
    seucobnseoqmuiecntbeexnpeefnitdsitausrseoscciaatnedbewmitehasuanredinrveelisatbmlyen. tOtphreorpesurtbysewquilelntfleoxwpetnodittuhreesGarroeurpecaongdnizthede
    
    in profit or loss in the period in which they are incurred.
    
    dTehpereGcrioatuiponusoersatmheorctoizsat tmioondpelolfiocrysfuobrsethqeueinntvemsetmaseunrtempreonpteortfyinwvheiscthmeisntcopnrospisetretnyt, wanidthatdhoapttfsoar
    
    buildings or land use rights.
    
    aWmhoeunntanofinavneystpmroecnetepdrsoopnerdtyispisossaolldn,ettraonfstfheerrceadr,ryreintigreadmoorudnatmanadgerde,lattheed Gtarxoeuspinrepcroogfnitizoerslothses
    
    for the period.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    15. Fixed assets
    
    15.1 Recognition criteria for fixed assets
    
    sFeixrveidceass,sfeotsr raernetatlantogiboltehearss,seotrs ftohratadamreinhiesltdratfiovre upsuerpionsetsh,eapnrdodhuacvteiounseofrulsulipvpelsyooffmgooroedtshaonr
    
    oasnseocaicactoeudnwtiintgh tyheeara.ssAetfwixieldl falosswettoisthreecGogronuispedanodnltyhewchoesnt oitf itshepraosbseatbcleanthbaet meceoansoumreidc rbeelinaebfliyts.
    
    Fixed assets are initially measured at cost.
    
    Sifuibtsiesquperonbtaebxlpeetnhdaittuerceosnionmcuircrebdenfoerfitthseasfisxoecdiaatessdetwairthe itnhceluadsesedtiwn itlhleflcoowst toof tthhee fGixroedupasasnedt atnhde
    
    rseupblsaecqeudepnat rtexispednedreitcuorgensisceadn. Obtehemr esausbusreeqduernetlieaxbplye.ndituMreesanarwehrielecotghneisecdarirnyipnrgofaitmoorulnotssoifn tthhee
    
    period in which they are incurred.
    
    15.2 Depreciation of each category of fixed assets
    
    sAubfsixeqedueanstsetot itshedeopnreeciiantewdhoicvherititsisurseeafduyl lfifoer uinsitnengdtehde usstrea.ightT-lhineeumseeftuhloldifesi,necsetitmheatemdonnteht
    
    residual value rate and annual depreciation rate of each category of fixed assets are as follows:
    
    uEssetifmulaltiefde reEssidtiumaaltreadte depreAcniantuioanl rate
    
    BMuaicldhiinngersy 250--3400yyeeaarrss 00--55%% 3.22.4%%-2-05..00%%
    
    Motor Vehicles 4-12years 0-5% 7.9%-25.0%
    
    uEssetifmulatleifde naentd riessiidnuiatls veaxlpueectaesdsufmineasl stthaetussi.tuEasttiiomnawtehdenreetarefsiixdeudalasvsaeltueexispitrheefoamr oitusnetstthimatattehde
    
    Group can obtain from the disposal less expected disposal fees.
    
    15.3 Other explanations
    
    iItfsaufsiexeodr dasisspetosisalu, pthoen fdiixsepdosaaslseotr insodefuretucroegnecisoendo.mWichebnenaeffiitxseadreasesxept eisctseodldto, tbraengsefenrerreadte, dreftrioremd
    
    roerladtaemd atagxeeds, athree raemcoogunnitseodf iannyprporfoitcoeredlossosnfodristhpeospaelrioofdt.he asset net of the carrying amount and
    
    dTehpereGciraotuiopnrmeveitehwods athpepliuesdefautl leliafset oanndceeasttiemaacthedfinnaentciraelsiydeuaarl-evnadl,uaendofacacofiuxnetdfoarssaentyacnhdantghee
    
    as a change in an accounting estimate.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    16. Construction in progress
    
    cCoonnssttrruuccttiioonnexinpepnrdoigturreesss diusrinmgeathsuerecdonsattruicttsioanctpuearliocdo, sbtos.rroTwheingacctousatls ccaopstistaliinsecdludbeefovraeriiotuiss
    
    rCeoandsytrufocrtioinnteinndperodgruesses iasntdraontshfeerrrerdelteovaanftixceodstass.seCtownhsetrnucittiiosnreiandyprfoogr rienstesnidsednoutsed.epreciated.
    
    17. Borrowing costs
    
    aBsosrertowariengcacpoisttaslidseirdecwtlyheanttreixbpuetanbdlietutroesthfeoracsquucihsitaiossne,tcoanndstrbuoctriroonwionrgprcoodsutsctaioren oinfcquurraeldifyainndg
    
    pacretipvaitrieesthreelaastsientgfotor itthseinatceqnudiesditiuosne, ocor nssatlreuhctaivoencoormpmroednuccetdio. n oCfapthitealaisssaetitotnhaotf abroerrnoewceinsgsacryosttos
    
    icnetaesnedsewd huesne tohresaqluea.liOfythinegr baossrreotwbieninggcoacstqsuairreedr,eccoongsntirsuecdteadsoarnperxopdeuncseed ibnetchoempeesriroedadiyn fwohriciths
    
    they are incurred.
    
    cWaphietraelizfeudndiss tahree abcoturraolwinetdereusntdeexrpaensspeeicnicfiucr-rpeudrpoonsethabtorbroorwroinwgin, gthfeoratmheoupnetrioofd ilnetsesreasntytboanbke
    
    iinntveersetsmt eenatrinnecdomfreomon tdheeptoesmitipnograrthyeinbvoersrtomweendt offutnhdossebfeufnodrse. being used on the asset or any
    
    18. Biological assets
    
    The Group's biological assets are bearer biological assets.
    
    18.1 Bearer biological assets
    
    pBreoadruerceb,ioplroogviicsaiolnasosfetsseravriecebsioolrogreicnatlala,sBseetasr,efrobrieoxloagmicpalel ,ahsseeldtsfionr tthheeGprrooduupcatiroenvoinfeasg. rAicubletaurrearl
    
    sbeiolfl-obgriecdalcaosmseptriissesintihtioaslleycmosetassunreecdesastarciolyst.inTchuerrecdosatnodf dairbeecatlryerabttiroiblougtaicballe atsosetht esealsf-sgertobwenfoorer
    
    tbhoerroawssientg bcoecstommeeestinavgatihlaebclaepiftoarlisaittsionincterintdereida. production and operating purposes, and any
    
    aTnhde rGercoourdp cthheardgeepdreecparteicoantioinn bfoalrapnrcoedsuhcetievteabnidoliongciocmaleassstaettesmwehnitc.hTshaetisGfyroeuxppeucsteesdsptrraoidguhcttiloinne,
    
    method to calculate the deprecation, and details as follows:
    
    Category uEssetifmulaltiefde reEssidtiumaaltreadte depreAcniantuioanl rate
    
    Vines 20 years - 5.0%
    
    TprhoeduGcrionugplifeevaolfutahteesbethaererusbeiofulol gliicfealaansdseetsx.pected net salvage value by considering the normal
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    18. Biological assets - continued
    
    18.1 Bearer biological assets - continued
    
    TthheedGerporuecpiarteivoinewmsetthheodusaepfupllileidfe aatndleaessttimonacteedanteetarcehsidfuinaalnvcaialuleyoefarb-eeanrde,r abniodloagciccoaulnatssfeotrs aannyd
    
    change as a change in an accounting estimate.
    
    aOsnsetth, ethsealper,oicdeeendtsifiocnatidoinspoofsaalnnyetshoofrttahgeescadrruyriinngg asmtoockutnatkianngd, rdeelaetvhanotr tadxaemsagise roefcobginoilsoegdicianl
    
    profit or loss for the current period.
    
    19. Intangible assets
    
    Intangible assets include land use rights, software and trademark, etc.
    
    uAsnefiunltalnifgeibilse aavssaeiltabislemfeoarsuurseed, iintsitioarlliyginaat lcocsotstmleetshsodn.etWrheesinduaanl ivnatalunegibalnedasasneyt wacicthumaufliantietde
    
    Iimntpanaigrimbleentaslsoestssews iitsh ianmdeofritnisieted uosvefeurl iltisveesstairmeanteodt aumsoefrutilzeldif.eTuhseinugsefthuel lisvtreasigohft-tlhieneinmtanetghiobdle.
    
    assets are as follows:
    
    Item Useful life Net residual value amorAtiznantuioanl rate
    
    SLoanftdwuasree rights 450--1500yyeeaarrss -- 102..00%%--22.05.0%%
    
    Trademark 10 years - 10.0%
    
    wExitchepintffionritteheusaebfouvl elivinetsaningciblulediansgsetthsewlaitnhdfuinsieteriugshetfualndlivterasd, ethmeaGrkr.oLupanhdadusaelsroigihnttsanwgiitbhleinafsinseittes
    
    ruesleefvualnltivCeshialereapnedrmAaunsetrnatlilaanndlauwses rairgishitnsgwfirtohmpetrhmeaGneronut po’wsnaecrqsuhiispithioenldobfyVthi?eaGIrnoduópmuitnad,eSr.tAh.e,
    
    IVnid?oamDitoasWAinndeeGs,roSu.pA".),, aanndd tBhoedaecgqausisSitainotnaoAf lKiciilaikaSnPoAo.n(EcostlaletectPivteylyLtrde.f(ehrreerdeintoaftaesr trhefeer"rCedhitloe
    
    tarsadtehme a"rAkursetfrearlsiatoKtihliekatnraodoenmEarsktathee"l)d, tbhyertehfeorGe rtohueprearwisainsgnofroammothrteizaactiqouni.siTtiohne orifghthtetoChuislee
    
    Ionfdtoramdietma Warkinwe aGsrobuapseadnodnthteheAturesntrdasliainKtihliekmanaoroknetEasntadtecowmitpheitnitfiivneiteenuvsierofunlmlievnets,.pTrhoeduvcatlucaytciolen,
    
    annetdcmasahnaflgoiwngs ltoontgh-eteGrmroudpevweliothpimn eanntusntrcaetretgayin. Tpehroiosed.bTashies uinsedfiucal tleifdetihseintrdaedfeinmitaerkaswiitllwparsohvaidrde
    
    to predict the period that the trademark would bring economic benefits to the Group.
    
    aFmororatinsatiinotnanmgiebtlheodasastettheweinthd oaf tdheefpineirtieodu,saenfdulmlaikfee,s athdejusGtmroeunpts rwevhieenwnsectehsesaurys.eful life and
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    20. Impairment of long-term assets
    
    aTshseetGs,roinuvpeasntmdethnet Cproompepratnieys,recvoienwstrtuhcetiiomnpainirmperongt rsetsast,usboefarleorngb-itoelromgiecqaul itayssientveasntdmeinnttsa,nfgiixbelde
    
    aGsrsoeutspwesitthimfianteitse tuhseefruelcolivfeeraatblteheamenodunotf eoafcthheyeaasrs.eIt.fInthtaenregiibsleanayssientdsicwaittihoninfdoerfiimnipteaiurmseefnutl, ltihfee
    
    athnadt tghoeoadswseiltls amreaytebseteidmfpoaririemd.pairment annually, irrespective of whether there is any indication
    
    rReeccoovveerarabbleleamamouonutnot fiasneisntdimivaidteudaloansseitn,dtihveidrueaclovbearsaibsl.e Iafmiotunist onfotthepraascsteitcaglrotuop etostiwmhaitceh tthhee
    
    alessssetcboestlsonogfsdwisipllosbael easntdimtahteedp.reTsheentrevcaoluveeroafblteheamfuotuunret ocafsahnfalosswest iesxtpheectheidghtoerboefditesrifvaeirdvfarolume
    
    the asset.
    
    Ipfrorevcisoivoenraabnldeeaxmpoeunnsetdofinascsuertrsenist lpeesrsiothda. n book value, the difference is recognised as impairment
    
    Gtesotoindgw,illgoisodtewstielld ifsor ciomnpsaidiremreednt taotgleetahsetratwtihteh etnhdeofreelaatcehdyeaasrs.etFsorgtrhoeupp(usr)p, ois.ee.o, fgiomopdawirimllenist
    
    freroamsontahbelysyanlleorcgaiteesd otof tthhee rceolamtebdinaastisoents. gAronupim(sp)aoirrmeeancth loofssasissetrsecgorogunpis(esd) eixfptehcetedrectoovbeernaebfliet
    
    aammoouunntt.oTfhteheimaspsaeitrsmgernotulpososr issetfsirsotflyasaslelotscagtreoduptos r(eindculcueditnhge gcoaorrdywinigll)aims oleusnst tohfananiytsgcoaorrdywinilgl
    
    aplrloo-craatteadontothseucbhasaisssoeftsthgerocuaprryoirngseatsmoofunatssoeftseagcrhouapssse, ta(nodthtehretnhaton gthoeodowthiellr) ainsstehtes gorfotuhpe. group
    
    Trehveerismedpaiinrmaneyntsiusbrseecqougennitsepderiinodp.rofit or loss for the period in which it is incurred and will not be
    
    21. Long term prepaid expenses
    
    Lamonogrt-itzearmtionprpeepraioidd aerxepaesnsfeoslloawres:amortized equally over the period of projected earnings. The
    
    Amortization period
    
    LLaanndd lreeaqsueispitrieopnayfemeent 5500 yyeeaarrss
    
    LGereaesenhinogldfeime provement 5-32-05yyeeaarrss
    
    Others 3 years
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    22. Employee benefits
    
    22.1 Short-term employee benefits
    
    rInecoangnaiscecsouthnetinagctupaelrieomdpilnoyweehicbhenaenfitesmfoprlotyheaet shearsvirceendaseraedliasberilviitcye. TtohetheemGplrooyuepe, btheeneGfirtsouopf
    
    wthheeGn rtohueyp aarree ienictuhrerredin.cNluodne-dmoinnectoasryt oefmrpelloayteede basesneetfsitosrarcehmaregaesdurteodpartoffaitirovrallouses. in the period
    
    Sfuoncdiasl, lianbsourraunncieosnsauncdh eams pmloeydeiceaeldiuncsuatriaonncef,eeinsjpuaryidibnysutrhaencGeroanudp fporregenmapnlcoyyeinessu, raarnecree,choogunsisinedg
    
    raesgruellaetveadnrtelcioabginliittiyoninbtahseispaenridodpeirncewnhtaicghe.tTheheemreplaloteydeeesxpperonvdiidtueresseravriecee,itihneracicnocrluddanedceinwcitohstthoef
    
    related assets or charged to profit or loss in the period when they are incurred.
    
    22.2 Accounting treatments of retired benefits
    
    Retired benefits of the Group are all predetermined provision plan.
    
    wInitthhethpeeraiomdoiunntwshtiochbethepaeimd pclaolyceuelastepdroavcidcoersdeirnvgicteo, tthhee Gprreoduepterremcoingendiseprloiavbisiliiotyn ipnlaanc,coarnddanthcee
    
    preelraitoeddwexhpenentdhietyuraerseairnecueritrheedr. included in cost of related assets or charged to profit or loss in the
    
    22.3 Accounting treatments of termination benefits
    
    pWayhreonllprreosvuidltiinngg tferromminatetiromninbaetinoenfitbsentoefietsmpaltoytheees,eatrhleierGroofu: pthreecGogronuispe ceamnpnlootyeuenilbaetenreafliltys
    
    wanidthedxrapwensfreosmreltahteedtetromtihneaptiaoynmpelnant oofrtethrme irneadtuionndabnecnyefoitfsfeinr; rtehsetruGcrtouuripngre. cognise relevant costs
    
    23. Revenue
    
    23.1 Revenue from sale of goods
    
    sRigevneifnicuaentfrroimskssaalnedorfewgoaroddss oifs orwecnoegrnshisiepdowf htheen gthoeodGs.roTuhpe hGarsoutrpanrseftearinresdnetoithtehre cbounytienruitnhge
    
    omvaenratgheerigaol oidnsvoslovledm. Tenhte taomtohuendt eogfrereeveunsuueallcyanasbseocmiaetaesdurwedithreloiwabnleyrsahnidp int oisr perfofebcatbivlee tchoant ttrhoel
    
    ainscsuorcrieadtecdanecboenmomeaicsubreednerefiltisabwlyi.ll flow to the Group. The associated costs incurred or to be
    
    23.2 Revenue from rendering of services
    
    Wrevheennuteheasosouctciaotmede wofitah ttrhaenstaracntisoanctiinovnoslvhianllgbtheererceongdnerizinegd obfysreerfveirceenscceatnhebesteasgteimoaftecdomrepllieatbiloyn,
    
    of the transaction at the reporting date. The outcome of a transaction can be estimated reliably.
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    23. Revenue - continued
    
    23.2 Revenue from rendering of services - continued
    
    rWelhiaebnlyt,herevoeuntcuoemies roefcothgenistreadnsoancltyiotno itnhveoelvxitnegntthoef trheendceorsitnsginocfursreerdvictheast cwanilnl obtebreeceosvtiemraabtleed,
    
    aconsdtsthienccuorsrtesdiwnciullrbreedreacreovreerceodg,nriesveednauseeisxpneontsreescofogrnitsheed.period. When it is not probable that the
    
    24. Government grants
    
    tGootvheernGmreonutpgaratnntso acroentsriadnesrfaetrioonf.mAongeotvaeryrnamsseentts garnadntnoisn-rmecoongentaisreydaossneltys wfrohmenththeegGovroeurnpmceannt
    
    comply with the conditions attaching to the grant and the Group will receive the grant.
    
    Monetary government grants are measured by the amount received or receivable.
    
    24.1 Government grant related to an asset
    
    Aor gloosvseornvmeretnhtegursaenfturlelliafeteodfttoheanrealastseedt aisssreetcoongnaissetrdaiagshdt elifneerrbeadsiisn.come, and amortised to profit
    
    24.2 Government grant related to income
    
    Floosrseasgtoovebrenminecnutrrgerdanitnresluabtesdeqtuoeinntcopmereio, difs,thtehegrgarnatnits ias croecmopgennissaetdioansfodrefreerlraetdedinecxopmenes,esanodr
    
    irsecoagncoismedpeinnspartioofnit ofor rlorseslaotveedr tehxeppenersieosdsoirn lwoshsiecsh tahlereraedlyateidnccuorsrtesda,rethreecgorgannitsedis. Irfecthoegngirsaendt
    
    immediately in profit or loss for the period.
    
    tAhegonvateurrnemoefnet cgornaonmt rieclaatcetdivtiotieths;eaGgroovuepr'snmdaeinlyt garcatinvtitiisesnoist rreelcaotgednitzoedthienGotrhoeurpi'sncdoamilye abcatsievditioens
    
    is recognized in non-operating income.
    
    CThoempCaonmy,paanndy'sthegorveleartnemd elonwt lroaatnesinwteirtehstbweliollww-mriaterkoeftf rrealtaeteodf bionrtreorewsitngarceosdtisr.ecTthlye gpoaviderntomtehnet
    
    lgooavnesrnwmietnht lboealnosw,-wmhairckhetisrpartoeviodfedinbtyerelosctalobbtuarienaeudobf yfinoatnhceer thsurobusgidhiabraiensk wofiththbeelGowro-umparkareet
    
    arantde othfeinrteelraetsetd. Tbhoerroacwtuinagl acmosotusnatroef ctahleculolaatnedreaccecivoerddinbgy tthoethGeropurpinrceicpoalgnoifzetdheaslobaonrroanwdintghse,
    
    below-market rate.
    
    25. Deferred tax assets/deferred tax liabilities
    
    The income tax expenses include current income tax and deferred income tax.
    
    2A5t.1thCe ubrarleanntcienschoemeet dtaaxte, current income tax liabilities (or assets) for the current and prior periods
    
    atarxe lmaweass.ured at the amount expected to be paid (or recovered) according to the requirements of
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    25. Deferred tax assets/deferred tax liabilities - continued
    
    25.2 Deferred tax assets and deferred tax liabilities
    
    tFaoxr bteamsep, oorrarbyetdwifefeenretnhceesniblectwareryeningtheamcaorurnytinogf athmoosuenittsemofs ctherattaianreasnsoettsreocroglinaibsielidtieass aanssdettsheoirr
    
    lliiaabbiilliittiieess aarnedrethceoigrntiasxedbausseintghatht ecabnalbaencdeetsehremetinlieadbialcitcyomrdeinthgotdo. tax laws, deferred tax assets and
    
    dDeedfuercrteibdletatxemipsorgaernyerdailflfyerreenccoegsnaisreedrefcoorgnalilsetdemtopotrhaeryexdtiefnfet rethnactesi.t iDsepferrorbeadblteaxthaatssteatxsabfoler
    
    pHroowfitesvewr,ilflorbetemavpaoilraabryle daifgfaeirnesntcewshaicshsocthiaeteddedwuicthtibtlhee tienmitipaolrarerycogdnififteiorenncoefsgocaondwbiell uatnildistehde.
    
    tinhiattiaalffreecctosgnneitiitohnerotfhaenaacscsoeutnotirnlgiapbrioliftiyt anroirsitnagxafbrolemparotfriatsns(aocrtidoend(uncotitbalebluossisneess)sactotmhebitnimateiono)f
    
    transaction, no deferred tax asset or liability is recognised.
    
    rFeocrogdneidseudctitbolethelosesxetsenatntdhattaixt icsrepdriotbsabthleatthcaatnfubteurecatrarxieadblefoprrwoafirtds, wdielflebrreedavtaaixlabalseseatgsaianrset
    
    which the deductible losses and tax credits can be utilised.
    
    iDnevfeesrtrmedenttsaxin sliuabbsiilditiiaersiesaraendreacssoogcniiasteeds, afnodr intatxeraebsltes itnemjopinotravreyntudriefsfe, reexncceepst washseorceiathteedGrwoiutph
    
    itesmabploeratorycodniftfreorlenthcee twimililngnootfrtehveerrseeveirnsathl eoffothreesteeemabploerafruytudreif.feDreenfecrereadndtaixt iassspertosbaarbilseintghaftrothme
    
    rdeecdougcntiibseled ttoemthpeoerxarteyntdtihfafet rietniscepsroabsasbolceiathteadt thweritehwsilulcbhe tianxvaebsltempernotfsitsanagdaiinnsttewrehstischatroeutoilnislye
    
    fthueturbee.nefits of the temporary differences and they are expected to reverse in the foreseeable
    
    aActcothrdeinbgaltaontcaex lsahweest, tdhaattea,redeefxeprerecdtedtatxo aapspselytsinanthde lpiaebriiolidtieins warheichmethaesuarsesdet aits rtehaelistaexd orrattehse,
    
    liability is settled.
    
    wCuhrernenttheayndardiesfeerfrreodmtatxraenxspacetnisoenssoorrinecvoemntes athreatreacreogdniirseecdtlyinrpercoofgitniosredlosins footrhtehrecpoemriporde,heexncsievpet
    
    iinnccoommee oorrininshsahraerheohlodledresr'se' qeuqiutyit;ya,nidnwwhheinchthecyasaeritsheefyroamrebruescinoegsnsisceodmibninoatthioenrsc, oinmwprheihcehncsaivsee
    
    they adjust the carrying amount of goodwill.
    
    Aistntohelobnaglaenrceprsohbeaebtledatthea, tthseufcfaicrrieynintgtaaxmaboluentporoffditesfewrrielldbteaxaavsasielatsblies rinevtiheewefudtuanred troedaulcloewd itfhiet
    
    bpreonbeafibtleofthdaetfesrurfefdictiaexntatsasxeatsblteopbreofuittsiliwseildl.bSeuacvharieladbulcet.ion in amount is reversed when it becomes
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    25. Deferred tax assets/deferred tax liabilities - continued
    
    25.3 Net off of income taxes
    
    WorhtoenrethaelisGerothuepahsassetas laengdalsreitgtlhet tthoeselitatlbeiloitnieas nsiemt bualtsainseaonudsliyn,tecnudrrseenitthtaexr taossseettstleanodn caunrreetnbtatsaixs
    
    liabilities are offset and presented on a net basis.
    
    dWefheernretdhetaxGraosuseptshaasnda dleefgearlrerdightatxtoliasbeitltilteiescurrerleantet ttaoxinacsosemtse atnaxdeslialbeviliietidesbyonthae nseatmbeatsaisx,atainodn
    
    cauurthreonrtitytaxonasesiethtseranthdelisaabmileititeasxaobnlea ennettitbyaosirsdoirffteorernetaltiasxeatbhlee aesnsteittisesanwdhliicahbiilnittieensdsiemituhletrantoeosuestltyle,
    
    ibneeraecvherfsuetdu,rdeepfeerriroedd itnaxwahsiscehtssaignndifdicefaenrtreadmtoauxnltisaboiflidtieefserarreedotfafxseatsasnedtsporreslieanbtielditioens aarneeetxbpaescitse.d to
    
    26. Leases
    
    Lrieskasseasnadrerecwlaasrsdisfioedf oaws nfienrasnhcipe tloeatsheeslweshseene.eveAr ltlheottheerrmlseaosfesthaerelecalsaesstrifainesdfearssoupbesrtaatnintigallleyaasells.the
    
    26.1. Operating lease accounting methods
    
    26.1.1 The Group as lessee under operating leases
    
    lOeapseer,atainndg alreeaseeithpearyminecnlutsdeadreinrethceogcnoiszteodf orenlaatesdtraasisgehtt-olrincehabragseids toovperrotfhiteotrerlmossofforthteherepleervioandt.
    
    Initial direct costs incurred are charged to profit or loss for the period.
    
    26.1.2 The Group as lessor under operating leases
    
    tReermntaloifncthoemereflreovmanotpeleraatsien.gIlneiatsiaels idsirreecctogcnoisztesd winitphromfitoorer lothsasnonana sitnrasiiggnhitf-ilcinaentbaasmisoouvnetr athree
    
    ocavpeirtathliezeldeawsehetenrmin.cOurtrheedr, iannitdiaalrdeirreecctogcnoisztsedwiinthparonfiint soirgnloifsiscaonnt tahmeosuamnteabreascihsaarsgerdenttoalpirnocfoitmoer
    
    lpoesrsioidn itnhewpheicrihodtheiny wachtiucahllythaeryisaer.e incurred. Contingent rents are charged to profit or loss in the
    
    27. Changes in accounting policies
    
    BThuesinGersosuEpnhtearspraidsoepitned20th1e8N(CotaiiceKoufaith(e20R1e8v)isNedo.F1o5r,mhaetreoifnaFfitnearnrceifaelrrSetdatteomaesnttshefo"rCGaienKeuraali
    
    Nstaot.e1m5eDntoscfuomr e2n0t1"8) .released by the MoF on 15 June 2018 since the preparation of the financial
    
    III. SUMMARY OF SIGNIFICANT ACCOUNTINGYaPntOaiLChIaCngIyEuSPioAneNerDWAineCCCo.OLtUd.N20T18INAnGnual Report
    
    - continued
    
    27. Changes in accounting policies - continued
    
    sCtaatieKmueanit,Nwoh.1ic5hDaroecausmfeonltlorwevs:isaedddtthhee plirneeseintetamtisoonfi"tenmotsesoanntdheacbcaoluanntcserescheeievtabanled",th"neoitnecsoamnde
    
    apcacyoaubnletss",p"afyixabedle"a,ss"ertes"s,ea"rccohnsatrnudctidoenvienlopprmogernetsse"x, p"eonthseesr"p; ayreavbilsees"th, e"lopnrge-steenrtmatipoanyaobfles""otahnedr
    
    ""dadivmidinenisdtrsatirveeceievxapbelen"sesa"n;dle"sisntethreestlinreeceiitveambsle"o,f ""dniospteossarlecoefivfaibxleed", a"sascectso"u,nt"smraetceeriiavlasblfeo"r,
    
    c"sopnesctriualctpioanyaobflesf"ix, eadddastsheets"li,ne"niotteems spoayf a"bilnec"l,ud"iancgc:ouinnttesrepsatyeaxbplee"n,se"sd"ivaidnednd"isntperaeysatblien"c,omaned"
    
    uinncdoemr ethsetaitteemmeonfts".financial expenses"; and adjust the presentation location of certain items in the
    
    aFcocrocuhnatinnggetsreoaftmtheentspraensdenatdajtuiosnteditethmescosmtatpeadraabbleovdea,tathoef tGheropurpiorhayseaarpfpolriecdomreptarorasbpleectpievreiloydsf.or
    
    IV. CARSSITUIMCPATLIOJNUSDAGNMDEUNNTCSERINTAIANPTPILEYSIINNGACACCOCUONUTNINTGINEGSTPIMOLAITCEIESS AND KEY
    
    jIundtghmeeanptsp,liceasttiiomnatoefs aacncdouanstsinugmpptoiloincisesabaosustetthoeutcainrryNinogte aImII,outhnetsGorfouiptemissreiqnuitrheed ftionamncaikael
    
    satcattievmitieenst.s thTahtecseanjnuodtgmbeenmtse,aessutriemdataecscuanradtealsys,udmupetitoontshaereinbtearsneadlounncheisrttoairnictiaelseoxfpetrhieenocpeeoraftitnhge
    
    mGraoyudpi'sffemrafnroamgemtheenset aesstiwmeallteass. other factors that are considered to be relevant. Actual results
    
    cTohneceGrnroubpasipse. riodFicoarlltyhorseeviecwhantghees juindgamcecnotusn, tiensgtimpaotleicsieasndthaatssounmlyptiaofnfesctabcouvrerenotn fainagnociniagl
    
    sptoaltiecmieesntths,atthaeffeincftlubeonthcecsurarreentreacnodgnfiuzteudreinfincaunrcreianlt sptaetreiomde.nts,Ftohre tihnofslueecnhcaensgaerse irnecaocgcnoiuznedtinign
    
    both current and prospective periods.
    
    Key assumptions and uncertainties in accounting estimates
    
    rTehpeorftoinllgowpienrigodar,eththatemkeayy ahsasvuemaptsiiognnsifaicnadntunricsekrtoafinctaieussiinngaaccmouantetriniagl easdtjiumstamteesnatttothteheencdarorfyitnhge
    
    amounts of assets and liabilities in the future period.
    
    Deferred tax assets recognized for deductible losses
    
    tDaxefaebrlreedprtoafxitawssielltsbeareavraeiclaobglneizaegdaifnosrt awllhiucnhutsheed ltoasxselsoscsaens btoe tuhteiliezxetde.nSt itghnaitfiictainstpmroabnaabgleemtehnatt
    
    juupdognmtehnet ilsikreelqyuitriemditnogdaentedrmleinveelthoefafmuotuurnet otafxdaebfleerrperdotfaitxs atsosgeetsthtehratwciatnh bfeutruerceogtnaxizepdl,anbnasinedg
    
    strategies.
    
    IV. CRITICAL JUDGMENTS IN APPLYING ACCYOanUtaNi CThaInNgyGu PPioOneLerIWCiInEe CSo.ALNtd.D20K18EAYnnual Report
    
    ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES - continued
    
    Significant accounting judgments and accounting estimates - continued
    
    Depreciation of fixed assets
    
    AcosstseotfoeuatchiniNteomteoIfIIf-i1x5e,dtahsesedtesptroeciitastiroensidisuaclalvcaulluaetedovoenr tihtseessttriamigahtetdlinuesebfuasl ilsifteo. wThrieteG-orfofutph'es
    
    tmhaenhaigsetomriecnatl deextpeermrieinnecse tohfetheestiamctautaelduusseeffuulllilviveessoffofrixitesdfiaxsesdetsasosfetssi.mTilhairsneasttuimreaatendisfubnascetidonosn.
    
    tIhf ethfeutpurreevpioeruisodess.timates have significant changes, and depreciation expenses will be adjusted in
    
    Impairment of long-term assets
    
    iTnhdeicGatrooruspthaastsethsseebsowohkevthaelurethoef rneocno-vceurrarbenlet aamssoetusnctainsnloowt beer tfhuallnytrheecobvoeorkabvlael,uiem. pIfaitrhmereenat rleosasneys
    
    should be recorded.
    
    aTnhde trheecopvreersaebnlet vaamluoeunotfisthtehefuhtiugrheercaosfhthfelofwasir evxaplueecteodf atolobneg-dteerrmiveadssfertomlessthceosatssseotf. dAisspiotsaisl
    
    dvaiflfuiceuolft fthoer tahseseGtsrocuapnntootobbetarienlitahbelyqueosttiemdamteadr.kIent pasrisceessoinf gthtehelopnrge-steenrmt vaaslsueetsofcofuntcuerrenecda,shthfelofwaisr,
    
    ithncelumdainngagseamleesngtroowf tthheraGter,ofuupturise sreelqluinirgedpritcoe,mparkoeduscitginoinficcoasntt, ojupdegraetminegntesxpoennsthees aansdsudmispctoiounnst
    
    rate, which are of high uncertainty.
    
    CYeannttraei"C),hsaunbgsyiduiaPryionoefetrheWCinoemCpaonmypsatnayrteLdimpriotedducRtieosneaartchtheanedndDeovfe2lo0p1m7 ebnetinCgoa.,s Latdn.ew("Rm&aiDn
    
    p60ro%duocftiothnebGasreouopf ’tsheprCoodmucptaionny.. IRn&2D01C8,etnhterep’srotdoutacltioinnvoesftRm&enDt bCuedngtreet aincciotusnltosnfgo-rtemrmoreastsheatns
    
    bapoporkoxviamluaetessoRfMreBlev4a.5ntbillolinogn-,tewrmhicahssiestsa lianrcglue-dsicnaglefiixnevdestamsseentst., Acosnasttr3u1ctiDoenceinmbperrog2r0e1s8s, atnhde
    
    icnotnasnogliibdlaetedamfionuanntceidal tsotatRemMeBnts3, .w5hbicihllieoxne,rtascsciogunniftiicnagntfoinrflu2e6n.6c%e onofthtehecotnostoallidaastesedtsfiniannctihael
    
    mstaatneamgeenmtse.ntAosf tthheerCeomispalinttylefascpeascgerefaotroptheeratdinegveplorepsmsuernets otof atphpelydtohme eosftfi-ctakweinpeotemnatirakleot,f tthhee
    
    nloenwg-pterormduacstisoentsb. aTsheeinmaannaegfefimcieenntt pwearfyo.rImnsadthdeitiimonp,atihrmereenatretecsterbtyaindertiesrkms ionfinimg pifatihrme erenctofvoer rsaubclhe
    
    abmasoeudnot nisthleessprtehsaenntthvealbuoeookfveaxlupeecotefdlofnugtu-rteermcasahssfeltoswasn. dIndethteermasisneesssmtheentreocfovthereabfuletuaremocausnht
    
    fflloowwss, fthoer mthaenafguetumreen5t isyeraerqsui(r“epdrotoje, cbtainsegdpoenriaodre”a)soannadblceasahndflsouwppsoartfatebrlethbeasipsr,oajsescetsinsgthpeecraioshd
    
    (r“atseu,bsseaqleusengtropwertihodr”a)tea,nfdutmuraekeseslliignngifipcraincet ,jupdrgoedmucetniotsnacnodsta,cocpoeurnattiinngg eesxtipmeantseess ianntdheotdhiescrokuenyt
    
    assumptions.
    
    2A0c1c8o,rdtihneg atobotvhee rloesnugl-tteorfmthaessimetspaoirfmtehnet Gtersot,utphewmeraenangoetmimenptabireeldie.vTeshethreaftoares,ant o31imDpeaciermmbenert
    
    provision is made.
    
    IV. CRITICAL JUDGMENTS IN APPLYING ACCYOanUtaNi CThaInNgyGu PPioOneLerIWCiInEe CSo.ALNtd.D20K18EAYnnual Report
    
    ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES - continued
    
    Significant accounting judgments and accounting estimates - continued
    
    Inventory provision based on net realizable value
    
    pTrhoeviisniovnensthooriuelsd abree mmaedaesufroerdimonpaitrhmeelnotwoenr oobfsoclaertreyianngd vsaloluwe manodvinngetinrveeanlitzoarbieles. vTahleueg,roaunpd
    
    yweiallr.reassess whether the net realizable value is lower than the carrying cost at the end of each
    
    Tcohme bdientaetrimonin. ation of the fair value of identifiable assets and liabilities associated with business
    
    Freolar ttihveelcyositdeonftbifuiasibnleessascsoemtsbainnadtiloinab, itlhietieGs.roWuphaelnlotchaetefsaitrhevpaluurechoafsereplraitcieveblayseiddeonntiffiaaibrlvealauseseotsf
    
    aesntdimliaatbeiltihteiegsraorwetehvraaltueaotefdsablyesthbeasperdesoenntfuvtaulrueemoafrkitest fsuutpuprelycaanshd dfleomwasn, dTthoepmreadniacgt ecmasehntflnoewesd,
    
    aesntdimcaotnessidaenrdedjudthgempernotpseirn dthisecporuongtrerastse. for calculating, management need use major accounting
    
    V. TAXES Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    1. The main taxes and tax rate are as follows:
    
    (1) China
    
    Value added tax aVmAoTunist laefvteierddeadt u6c%ti,o1n0o%f ,el1i1g%ibl,e1i6n%puatnVdA1T7%. on the invoiced
    
    Consumption tax Thaetcroatnessurmanpgtiionngtfarxomof1th0e%gtroou2p0%is.levied on gross revenue
    
    CCoitrypdoeravteeloinpcmoemnet ttaaxx TLehveiGedroautp7%is soufbtjoetcatl tbouasicnoerspsotraaxtepainycmoemnet.tax rate of 25%
    
    on its taxable income.
    
    (2) France
    
    Value added tax VAoTf eilsigleibvlieedinaptu2t0V%AoTn. the invoiced amount after deduction
    
    Corporate income tax ThoenGirtsoutapxiasbsleubinjeccotmtoe.a corporate income tax rate of 33.3%
    
    (3) Spain
    
    Value added tax VAoTf eilsigleibvlieedinaptu2t1V%AoTn. the invoiced amount after deduction
    
    Corporate income tax ThoenGirtsoutapxiasbsleubinjeccotmtoe.a corporate income tax rate of 28%
    
    (4) Chile
    
    Value added tax VAoTf eilsigleibvlieedinaptu1t9V%AoTn. the invoiced amount after deduction
    
    Corporate income tax ThoenGirtsoutapxiasbsleubinjeccotmtoe.a corporate income tax rate of 27%
    
    (5) Australia
    
    Value added tax VAoTf eilsigleibvlieedinaptu1t0V%AoTn. the invoiced amount after deduction
    
    Corporate income tax ThoenGirtsoutapxiasbsleubinjeccotmtoe.a corporate income tax rate of 30%
    
    Oartehaelrltshtaantetdaxasinacbeonvteiv. es stated in Note V-2, applicable tax rates of the Group in 2018 and 2017
    
    V. TAXES - continued Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    2. Tax incentives and relative permit
    
    NwhinogsxeiapriCnhcaipnaglyauctGivriatypeisGgrroapweinggroCwoin.,gListdi.n("cNoripnogrxaitaedGirnowNiinnggx")i,a aHusiuzbusiAdiuatroynoomf otuhse RGergoiuopn,.
    
    TAacxcoMrdeinagsutroesclfaourseIm2p7leomf ePnRtaCtioCno, rNpoinragtxeiaInGcoromweinTgaxenajnodysclaanuseex8e6mpotfioPnRCofCcoorrppoorraattee Iinnccoommee
    
    tax.
    
    pYrainnctaipi aClhaacntgivyiutyGirsapgeraGpreowgirnogwCinog., iLstdin.(c"oGrproarpaeteGdroinwiZnghif"u), aDbisrtarniccth, oYfatnhteaiCComityp,anSyh,awndhoonsge
    
    PInrcoovmineceT. aAxccMoredaisnugretos cfolarusIme 2p7lemofePnRtaCtioCno, rGporaraptee IGnrcoowmiengTaexnjaonyds calnauesexe8m6potfioPnRoCf Ccoorrppoorraattee
    
    income tax.
    
    XwiinnejianpgroTduiacntizohnu Canod., Lstadle(s"XiinncjoiarnpgorTatieadnzhinu")S,haihseuzbisidciitayr,y oXfinthjieanCgomWpaenizyu, isAauntoennotmeropuriss.e Ionf
    
    aWcecsotredranncCehiwnaithDethveeloNpomtiecnet SotnraTteagxy P(CoaliicyShIusisu[e2s01c1o]nNceor.n5i8n)g, XFiunrjtihanerg TImiapnlzehmuenistaqtiuoanlifoiefdthtoe
    
    erantjeoyofp1r5ef%erefonrtitahletapxearitoiodnfproomlic2ie0s1,5wthoic2h02m0.eans it can pay corporate income tax at a preferential
    
    eXnitnejripanrigseBoafbwaoinBeaprroonduCchtaiotenaaunCdos.a,lLestdi.n(c"oSrphoihreazteidCihnaStehaiuh"e)z,iacistuyb, sXidiniajriaynogfWtheeizCuoAmuptaonnyo,misoauns.
    
    IWneastcecronrdCanhcineawDitehvetlhoepmNeontitceStroanteTgayx(CPoailicSyhuIsis[u2e0s11co]nNceor.5n8in)g, SFhuihrtehzeirCIhmapteleamueinstaqtuioanlifoiefdthtoe
    
    erantjeoyofp1r5ef%erefonrtitahletapxearitoiodnfproomlic2ie0s1,5wthoic2h02m0.eans it can pay corporate income tax at a preferential
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    
    1. Cash and bank
    
    31/R12M/2B018 31/R12M/2B017
    
    BCaasnhk balance 1,382,391194,7,43935 1,278,319367,,977113
    
    Other currency fund __9__3,_1_8_6_,3__9_3_ __1_2_3__,9_8_7_,8__2_5
    
    Total _1_,4_7_5_,_7_0_0_,4_7_7_ _1_,4_0_2__,5_2_2_,_5_0_9
    
    At 31 December 2018, the balance of restricted cash of the Group is as follows:
    
    31/R12M/2B018 31/R12M/2B017
    
    Home maintenance funds ____2_,_6_1_1_,_35_0_ _____2,_6_4_5_,4_1__0
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    1. Cash and bank - continued
    
    As at 31 December 2018, the Group's other monetary assets is as follows:
    
    31/R12M/2B018 31/R12M/2B017
    
    RepseleadrcghedanddepDoesivtefloorplmonengt-tCerom., Lpatdya(b"Rle&s D Centre") 46,100,000 61,700,000
    
    DAleippoasyitafcocroluentttebraolafnccreedit 424,,548403,,881506 547,,391467,,163905
    
    DDeeppoossiitt ffoorr CICoBmCpapnlaytfcoarrmds _______51_01_,,7_02_007_ _______11_40_,,00__000_0
    
    ___93__,1_8_6_,_39_3__ ___1_23__,9_8_7_,8_2_5_
    
    Amsonatths31wDheencemacbqeurir2e0d18is, tRheMGBro1u7p3's,0t4e2r,m40d0epwoistihts iwntietrhesotrirgaitneal1m.5a0t%ur-i3ty.80o%f m(o3r1e Dtheacnemthbreeer
    
    2017:RMB 95,000,000).
    
    2. Notes and accounts receivable
    
    2.1 Presented by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    NAcocteosurnetcserievcaebilveable ___224_88_2,_,61_56_73_,,9_0_88_38 __22_46__34,_,77_99_66_,,8_35_15_8
    
    Total ___5_30__,8_2_1_,0_7__1 __5__0_8,_5_9_3_,_17_3_
    
    2.2 Notes receivable
    
    (1) Categories of notes receivable
    
    31/R12M/2B018 31/R12M/2B017
    
    Bank acceptances ___28_8_,_6_6_7_,9__88_ __2_4__4_,7_9_6_,8_1_8_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    2. Notes and accounts receivable - continued
    
    2.2 Notes receivable- continued
    
    (2) Notes receivable which have been pledged as security at the end of the period
    
    As at 31 December 2018, there was no pledged notes receivable (31 December 2017: Nil).
    
    (3) Notes receivable endorsed but are not yet due at the balance sheet date
    
    31/R12M/2B018 31/R12M/2B017
    
    Bank acceptances ___1_82_,_8_2_9_,6_7_4_ ___1_8_8_,8_5_5_,_84_3_
    
    Athse aetnd31ofDtehceepmebrieord2i0s1R8M, nBot1e8s2e,n8d2o9r,6se7d4 b(3y1tDheecGermobueprt2o0o1t7h:eRr MpaBrti1e8s8w,8h5i5ch,84ar3e).nTohteynetotdeusearaet
    
    uofsebdanfokr, tphaeyrmisekntoftonosutepspnlioetrsacacnedptcionngsbtryucbtaionnkso. nThmeatGurroituypisbveleireyveloswth, atht edrueefotroe gdoeoredcoregpnuistaetitohne
    
    rneolteevarenctelaivwasblaensdernedgourlsaetido.nIsfotfhCe hbiannak, thise uGnraobulpe wtooupladyutnhdeerntoatkeesliomnitmedatluiaribtyil,itaycfcoorrdthinegnototest.he
    
    (4) oNnotmesatruercietyivable reclassified to accounts receivable due to the drawers' inability to settle the note
    
    Adesfaautl3t 1ofDdercaewmerbe(3r120D1e8c,emnobenro2te0s1r7e:cNeiivl)a.ble were reclassified as accounts receivable due to the
    
    2.3 Accounts receivable
    
    (1) Disclosure of accounts receivable by categories:
    
    31/12/2B0a1d8debts Carrying 31/12/2B0a1d7debts Carrying
    
    AmounAt moPurnotportion AmoupnrotvisionRatio Aammoouunntt AmounAt moPurnotportion Amoupnrot visionRatio Aammoouunntt
    
    RMB % RMB % RMB RMB % RMB % RMB
    
    Acbcaodundtesbrtepcreoivvaisbiloenfhoarswbheiecnh
    
    assessed individually 2_42_,1_53_,0_83_ _10_0_.0 ___-_ ___-_ 2_42_,1_53_,0_83_ 2_63_,7_96_,3_55_ _10_0_.0 ___-_ ___-_ _26_3,_79_6,_35_5
    
    TThhee nacocrmouanltcsrreedcietitvearbmleisaroenienmteroenstth-f,rweeh.ich can be extended to one year for certain customers.
    
    ADescaetm3b1eDr e2c0e1m7:bRerM2B01486, ,o3w37n,e0r6sh2i)p, rreefsetrrricintegdtoacNcooutentVsIr-e4c5e.ivable is RMB 52,015,032 (31
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    2. Notes and accounts receivable - continued
    
    2.3 Accounts receivable - continued
    
    (1) Disclosure of accounts receivable by categories - continued
    
    The aging analysis is as follows:
    
    31/R12M/2B018 31/R12M/2B017
    
    W1 tioth2inye1ayrsear 240,13,1562,67,67232 263,168123,,764114
    
    2 to 3 years ______2_7_3_,_6_88_ _________-___
    
    __2_42_,_1_5_3_,0_8_3__ ___26_3__,7_9_6_,_3_55_
    
    (2) Recognitions, collections and reversals during the current year:
    
    2A0s1a7t: 3N1ilD).ecTehmerbeerw2a0s1n8o, thbearde dweabst nporobvaisdiodnebmt padroev, irseiovnerfsoerdaocrcowurnittsterne-coefifvabbylem(a3n1agDeemceemntbeinr
    
    2018 (2017: Nil).
    
    (3) Top five entities with the largest balances of accounts receivable:
    
    Name wRitehlathtieonGsrhoipup Amount Aging toPtaelrcreencteaigveabolfes
    
    RMB %
    
    NSaoinngsbounrgys'hsasnugpeSrumpaerrkmeatsrkLettd Third party 17,428,889 Within 1 year 7.2
    
    SL(IGGrRoOupB) C.Vo.., Ltd TThhiirrdd ppaarrttyy 160,,792382,,145785 WWiitthhiinn 11 yyeeaarr 42..58
    
    VSui?geudooSsyupBeormdeagraksetLCaso.P, iLrctda.s TThhiirrdd ppaarrttyy __66_,,_4431_05_,,35_08_75 WWiitthhiinn 11 yyeeaarr __22.._76
    
    __4_7,_93_5_,4_1_4 _1_9._8
    
    3. Prepayments
    
    (1) The aging analysis is as follows:
    
    Amoun3t 1/12/2018 Ratio Amount31/12/2017 Ratio
    
    RMB % RMB %
    
    Within 1 year 4__,2_1_9_,9__49__ _1_0_0_.0_ _2_,_4_1_7_,9__31_ _1_0_0_._0
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    3. Prepayments - continued
    
    (2) As at 31 December 2018, the top five of prepayments were as follows:
    
    Relationship foRrebaseoinng tPoetarcleandtvaagnecoefs
    
    with the Group ARmMouBnt Aging outstanding to su%ppliers
    
    ShTanragdhea&i BDeenvcehloupment Co., Ltd. Third party 345,600 Within 1 year Goods not received 8.2
    
    DCaOrNrinEgLtoLnI VEsItNatIeST.P/A.AK. arikari Esta TThhiirrdd ppaarrttyy 334040,,249084 WWiitthhiinn 11 yyeeaarr GGooooddss nnoott rreecceeiivveedd 87..21
    
    DYaenvetaliopEmcoennotmZiocnaenTdhTeremchanloCloog.,icLatld Third party 250,000 Within 1 year Prepaid heating fees 5.9
    
    YaAntgaeinCt iChoan.,gLItndt.ernational Freight Third party __1_86_,3_9_2_ Within 1 year Prepaid agency fees __4._4
    
    _1,_4_26_,6_9_4_ _3_3._8
    
    4. Other receivables
    
    4.1 Presented by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    OInttheerersrterceeciveiavbalbesle __2_1_1,_,33_03_23_,,6_4_801_5 __1_8_,_72_34_07_,,94__5684_
    
    Total ___2_2,_6_3_6_,0__86_ __1__8,_9_7_8_,4__22_
    
    (1) Categories of interest receivable
    
    31/R12M/2B018 31/R12M/2B017
    
    Interest receivable on bank deposits _1_,_3_3_2_,6_8_1_ __2_4_0_,9_6_8_
    
    (2) Overdue interest
    
    As at 31 December 2018, there was no overdue interest receivable (31 December 2017: Nil).
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    4. Other receivables- continued
    
    4.2 Other receivables
    
    (1) Disclosure of other receivables by categories
    
    31/12/2B0a1d8debts Carrying 31/12/2B0a1d7debts Carrying
    
    AmounAt moPurnotportion AmoupnrtovisionRatio Aammoouunntt AmounAt moPurnotportion Amoupnrot visionRatio Aammoouunntt
    
    RMB % RMB % RMB RMB % RMB % RMB
    
    Otbhaedr rdeecbetivparbolveisfioornwhhaischbeen
    
    assessed individually _2_1,_30_3,_40_5 _10_0_.0 ___-__ _-__ _2_1,_30_3,_40_5 _1_8,_73_7,_45_4 _10_0_.0 ___-__ _-__ _1_8,_73_7,_45_4
    
    The aging analysis is as follows:
    
    31/12/B2a0d18debts Carrying 31/12/20B1a7d debts Carrying
    
    AmounAt mouPnrtoportion pAromvoisuinotn Aammoouunntt AmounAt mouPnrtoportion pAromvoisuinotn Aammoouunntt
    
    RMB % RMB RMB RMB % RMB RMB
    
    1Wtioth2inye1ayrsear 116,,269933,,970082 5313..50 -- 116,,269933,,970082 113,,921347,,396011 1700..35 -- 113,,923174,,936011
    
    2Ovtoer33yyeaerasrs __11_,,93_92_22,,_9799_87 ___69_..50 ____--__ __11_,,39_29_22,,_9799_87 _12_,,32_71_31,,_6590_11_ __1_72_..02 ____--__ __12_,,32_171_3,,6_509_11
    
    __21_,3_03_,4_0_5 __10_0._0 ____-__ __21_,3_03_,4_0_5 _1_8,_73_7_,4_54_ __10_0._0 ____-__ __18_,7_37_,4_5_4
    
    (2) Accrual, reversal and written-off during the current year
    
    A35s4a,8t 0351)D. ecember 2018, no bad debt provision was made for other receivables (2017: RMB
    
    (3) Other receivables written off in the current year
    
    ARMs aBt 33154D,8e0ce5m).ber 2018, the Group has no other receivables written off (31 December 2017:
    
    (4) Disclosure of other receivables by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    PDeetptyosciatsh receivable 120,,245734,,063284 120,,207155,,190416
    
    RInevfeusntmd oenf tcfounnsdumption tax, real estate tax 6,273-,882 22,,405501,,018008
    
    Others ____2__,3_0_1_,8__6_1 ____1__,9_4_5_,2__1_9
    
    ____21__,3_0_3_,4_0__5 ____18__,7_3_7_,4_5__4
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    4. Other receivables- continued
    
    4.2 Other receivables- continued
    
    (5) Five entities with the largest balances of other receivables
    
    As at 31 December 2018, the top five of other receivables are as follows:
    
    Nature Amount Aging PoetrhceernrteacgeeivoafbtoletsalCloBsiandg dbeablatnce
    
    RMB % RMB
    
    YCoanntsatriuDcteivoenloInpdmuesntrtyZAonsseociation Construction deposit 7,709,477 Within 3 years 36.1 -
    
    ZYhaenjtiaainSghTemnmalal PTaecckhangoilnoggyCoC.o, .L, tLdt.d. Shop deposits 867,426 Within 1 year 4.1 -
    
    Y("aSnhteanimDaevPealcokpamgeinngt"Z)one Lease receivables 813,440 Within 1 year 3.8 -
    
    YaPnotawieDreCvoemloppamneynt Zone Deposit 140,000 Within 3 years 0.7 -
    
    Heat Company Deposit ____1_30_,_0_0_0 Within 3 years __0_.6_ ______-___
    
    __9_,_6_60_,_3_4_3 _4_5_._3 ______-___
    
    5. Inventories
    
    (1) Disclosure of inventories by categories
    
    31/12/2018 Net carrying 31/12/2017 Net carrying
    
    BRalManBce PrRovMisBion aRmMouBnt BRalManBce PrRovMisBion aRmMouBnt
    
    RWaowrkminatperrioaglress 1,76877,,281679,,092353 -- 1,76877,,281679,,092353 1,5668,62,3808,18,05190 -- 1,56686,,823810,,085901
    
    Finished goods __8_94_,_18_7_,7_2_5 _(2_4_,6_8_3,_2_26_) __8_69_,_50_4_,4_9_9 _8_6_4,_0_97_,4_9_7_ _(2_5_,5_9_5,_3_92_) __8_38_,_50_2_,1_0_5
    
    _2_,7_49_,_27_4_,6_8_3 _(2_4_,6_8_3,_2_26_) _2_,7_24_,_59_1_,4_5_7 _2_,4_99_,_20_9_,4_3_8 _(2_5_,5_9_5,_3_92_) _2_,4_73_,_61_4_,0_4_6
    
    (2) Inventory provision
    
    ClosiRngMbBalance RecRoMgnBized RRevMerBsal WrRitMtenBoff OpeniRnMg bBalance
    
    Provvailsuieonoffoinrvdeenctloinrieesin __25_,_5_9_5,_3_9_2 ___7_4_9,_1_3_4 (_1_,6_6_1_,3_0_0_) _____-___ _2_4_,_6_83_,_2_26_
    
    6. Other current assets 31/12/2018 31/12/2017
    
    RMB RMB
    
    PPerenpdaiindgtdaexdeusct VAT on purchase 23234,,008777,,730273 20226,,951219,,250948
    
    Prepaid rent ____1,_5_1_1_,3_6_6_ ____1__,3_8_1_,9__57_
    
    __25_8__,6_7_6_,_3_9_6 ___2_30_,_8_2_2_,7__5_9
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    7. Available-for-sale financial assets
    
    (1) Available-for-sale financial assets
    
    Amount Im3p1a/1ir2m/2e0n1t8Carrying amount Amount I3m1p/1ai2r/m20e1n7t Carrying amount
    
    RMB RMB RMB RMB RMB RMB
    
    Aveaqiluaibtylei-nfsotrr-usmaleents
    
    measured at cost __4_6_7_,2_5_1 ____-___ _4_6_7_,2_5_1 __4_6_7_,2_5_1 ____-___ _4_6_7_,2_5_1
    
    (2) Available-for-sale financial assets measured at cost
    
    Carrying amount Provision for impairment losses Pvrootpinogrtipoonwoefr diCviadsehnd
    
    Investee Opening Increase Decrease Closing Opening Increase Decrease Closing inivnetshteee fpoerritohde
    
    RMB RMB RMB RMB RMB RMB RMB RMB (%) RMB
    
    Other _46_7,_25_1 ____- ____- _46_7_,25_1 ____- ____- ____- ____- ____ ____
    
    aTrheeaGllruonulpishteodldcinogmepqauniiteys,raatniodstohfeiirnvfaeisrtmvaelnuteccoamnnpoant ibees amreealseusrsetdharneli1a%bl.yI,ntvheesrtemfoernet, ctohme pGarnoiueps
    
    uses cost method to measure these available-for-sale financial assets.
    
    8. Investment properties
    
    Investment properties measured by cost method
    
    BuRilMdiBngs
    
    3T1o/t1a2l /o2r0ig1i7nal carrying amount 38,347,283
    
    TInrcarnesafseer from fixed assets ____32_,_6_0_6_,7_6__2
    
    31/12/2018 ___7__0_,9_5_4_,0__45_
    
    3T1o/t1a2l /a2c0c1u7mulated depreciation 19,879,294
    
    ITnrcarnesafseer from fixed assets 17,644,360
    
    Additions _____1,_8_5_7_,9_0__2
    
    31/12/2018 ___3__9,_3_8_1_,5_5__6
    
    3T1o/t1a2l /c2a0r1ry8ing amount ____3_1_,5_7_2_,_4_8_9
    
    31/12/2017 ____18_,_4_6_7_,9_8_9_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    9. Fixed assets
    
    (1) Details of fixed assets
    
    BuRilMdiBngs MaRcMhinBery MotoRrMVeBhicles RTMotaBl
    
    T31o/t1a2l /o2r0ig1i7nal carrying amount 4,508,868,684 2,247,350,293 28,689,415 6,784,908,392
    
    PInucrrcehaassee 4,490,675 235,607,780 923,222 241,021,677
    
    TArcaqnusifseirtifornomincCreIPase (VII-1) 2532,30,3045,82,32407 21052,,298511,,669342 1,708-,803 4545,99,9025,96,96199
    
    DDeiscproeasasel (4,409,703) (35,392,585) (4,740,801) (44,543,089)
    
    TrapnrosfpeerrttioesIn(vVeIs-t8m)ent __(3_2_,_60_6_,7_6_2_) _______-___ _____-___ __(3_2_,_60_6_,7_6_2_)
    
    31/12/2018 4_,7_6_1_,4_2_6_,4_2_5_ _2_,6_6_5_,7_9_8_,8_1_4 _2_6_,5_8_0_,6_3_9 7_,4_5_3_,8_0_5_,8_7_8_
    
    T31o/t1a2l /a2c0c1u7mulated depreciation 512,643,486 922,944,520 20,236,417 1,455,824,423
    
    AIndcdreitaisoens 126,510,348 168,695,471 2,632,539 297,838,358
    
    DDeiscproeasasel (242,705) (29,575,754) (2,125,751) (31,944,210)
    
    TrapnrosfpeerrttioesIn(vVeIs-t8m)ent __(1_7_,_64_4_,3_6_0_) _______-___ _____-___ __(1_7_,_64_4_,3_6_0_)
    
    31/12/2018 __6_2_1_,2_6_6_,7_6_9 _1_,0_6_2_,0_6_4_,2_3_7 _2_0_,7_4_3_,2_0_5 _1_,7_0_4_,0_7_4_,2_1_1
    
    T31o/t1a2l /c2a0r1ry8ing amount 4_,1_4_0_,1_5_9_,6_5_6_ _1_,6_0_3_,7_3_4_,5_7_7 __5_,8_3_7_,4_3_4 _5_,7_4_9_,7_3_1_,6_6_7
    
    31/12/2017 _3_,9_9_6_,2_2_5_,1_9_8 1_,3_2_4_,4_0_5_,7_7_3_ _8_,4_5_2_,9_9_8_ _5_,3_2_9_,0_8_3_,9_6_9
    
    DAseceamt b3e1r D20e1c7e:mRbMerB2104158,,00fi9x,e9d23a).ssPeltesasweirtehfeorwtoneNrsohteipVrIe-4st5riicnteddetaairle. RMB 412,006,421 (31
    
    5A9s,7a1t8,31155D(3e1ceDmebceerm2b0e1r 82,01th7e: NGirl)o.uTphehaGsronuept hfiaxsednoafsisxeetds athssaettsaraecqtueimrepdoruanrdileyr fiidnlaencoef lReaMseBs
    
    or fixed assets classified as held for sale (31 December 2017: RMB 2,000,197).
    
    (2) Fixed assets through operating lease
    
    ARmMouBnt
    
    Machinery _1_3_4_,1_1__1
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    9. Fixed assets - continued
    
    (3) Fixed assets of which certificates of title have not been obtained
    
    As at 31 December 2018, buildings without property certificate are as follows:
    
    Amount of tRitleeashoanvsewnohtybceeerntifoicbatateinsed
    
    RMB
    
    IRnedsuesatrrcyhParnodduDcetivoenloCpemnetrnet Co, Ltd 1,755,472,791 Processing
    
    BCheiajningganCChahtaetaeuauEuDroorpmeaitnortyowbnu,ilmdianign,,msearivnicbeuibludiilndging 128847,,586950,,249283 PPrroocceessssiinngg
    
    XDiinnjgiaLnugoTTiaenCzhhuatfeearummenatiantibounisldainndg storage warehouse 1873,,271688,,484302 PPrroocceessssiinngg
    
    IJcinegWyainnge fCahcatoteryaufeorfmfiecnetbatuiioldnibnugiladnidngpacking workshop 94,,119718,,931738 PPrroocceessssiinngg
    
    FKeyrlminePntaactkioangicnegnftrineioshffeidceg,oeoxdpserwimareenhtobuusieldainndgwanodrkwshoorkpshop 32,,365963,,485904 PPrroocceessssiinngg
    
    Sales Company office buildings ____1_,1_2_3_,9_8_4 Processing
    
    _2_,3_4_9_,4_6_0_,4_0_3
    
    mThaenabgueimldeinntg.s without property certificate above have no significant influence on the group's
    
    10. Construction in progress
    
    (1) Construction in progress:
    
    31/R12M/2B018 31/R12M/2B017
    
    R&CDonCsternutcrteio(n"C")hParnogjyeuctWine integrational 608,553,617 883,731,540
    
    CNhinagnxgiaanCChhaateteaauuCCoonnsstrtruucctitoionnPProrojejecctt 3497,,719633,,889633 3553,,279110,,203669
    
    SShaliehsezCioCmhpaatenayucConosntsrturcutcitoinonpProrjoejcetct 1273,,968654,,818224 1215,,345653,,678254
    
    Other companies construction Project ___2_2_,1_3_5_,2__1_2_ ____1_6_,5_8_9_,_3_1_5
    
    _7__5_9_,2_9_6_,5_9__1_ _1_,_0_2_6_,1_4_1_,_5_6_9
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    10. Construction in progress- continued
    
    (2) Changes in significant construction in progress:
    
    TLroannes-fteerrmto Total accumulated Capitalizing Interest
    
    Budget 31/12/2017 Addition TraPnsPfEer to perxeppeanidse 31/12/2018 Status Cainptietareliszting for thinistepreesritod capitaralitzeation Financed by
    
    RMB RMB RMB RMB RMB RMB RMB RMB % Loans from
    
    Changyu Wine integrational infsintiatuntciioanls
    
    CCohnanstgraunctCiohna"teau Construction 4,505,780,000 883,731,540 118,142,779 (372,914,273) (20,406,42- 9) 608,553,617 74.3 14,271,8-37 5,843,8-72 1.2%及4.3-% and Self-raised
    
    ShPihreozjei cCthateau Construction 620,740,000 53,290,036 12,149,197 (25,645,340) - 39,793,893 108.7 - - - Self-raised
    
    NinPgroxjieacCt hateau Construction 780,000,000 25,463,724 37,629,835 (39,429,435) - 23,664,124 96.3 - - - Self-raised
    
    SalPersoCjeocmt pany construction project 141614,,315500,,000000 3115,,735151,,268695 146,,380973,,216951 (2(,286524,,969741)) - 1477,,918653,,888623 19072..71 - - - SSeellff--rraaiisseedd
    
    The interest capitalized in construction in progress is RMB 5,843,872 in 2018(2017: RMB 6,138,242).VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    11. Bearer biological assets
    
    Bearer biological assets are Vines, which measured in cost method
    
    biolIomgmicaatluarsesets biologMicaatluraessets Total
    
    RMB RMB RMB
    
    3T1o/t1a2l /o2r0ig1i7nal carrying amount 12,175,000 217,537,353 229,712,353
    
    ICnuclrteivasaeted increase 19,371,297 - 19,371,297
    
    Transfer to mature assets (_1_7_,7_0_8_,_6_8_9_) ___17_,_7_0_8_,_68_9_ ________-___
    
    31/12/2018 __1_3,_8_3_7_,_60_8_ __23__5,_2_4_6_,_04__2 __2_4_9,_0_8_3_,_6_5_0
    
    3T1o/t1a2l /a2c0c1u7mulated depreciation - 27,782,465 27,782,465
    
    IAndcdreitaisoens _______-___ ___1_2,_0_3_4_,8__1_2 ___1_2,_0_3_4_,_8_12_
    
    31/12/2018 _______-___ ___3_9_,8_1_7_,2__7_7 __3_9__,8_1_7_,2__7_7
    
    3T1o/t1a2l /n2e0t1c8arrying amount 1__3_,8_3_7_,_60_8__ _19__5_,4_2_8_,7_6__5_ _20_9__,2_6_6_,3_7_3__
    
    31/12/2017 __1_2_,1_7_5_,_0_00_ __1_8_9_,7_5_4_,_88_8_ __2_0_1,_9_2_9_,_88_8_
    
    A20s1a7t:N3i1l)December 2018, there is no biological asset with ownership restricted. (31 December
    
    Aprsovaitsi3o1nDisemceamdeb.e(r3210D1e8c,etmhebreer i2s0n1o7:iNnidli)cation that biological assets may be impaired, and no
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    12. Intangible assets
    
    (1) Intangible assets
    
    LandRuMseBrights SoftwaRreMuBse rights TraRdMemBark RToMtaBl
    
    3T1o/t1a2l /o2r0ig1i7nal carrying amount 521,731,139 73,666,754 159,702,508 755,100,401
    
    IPnucrrcehaassee 1,596,780 922,809 105,827 2,625,416
    
    Acquisition increase(VII-1) ____4_,9_2_4_,9_9_2 ____1_,2_3_2_,4_9_4 __1_0_,2_6_0_,4_0_0 ___1_6_,4_1_7_,8_8_6
    
    31/12/2018 __5_2_8_,2_5_2_,9_1_1 ___7_5_,8_2_2_,0_5_7 _1_7_0_,0_6_8_,7_3_5 __7_7_4_,1_4_3_,7_0_3
    
    T31o/t1a2l /a2c0c1u7mulated depreciation 67,547,772 21,516,741 10,586,991 99,651,504
    
    IAndcdrietaiosnes ___1_0_,5_2_3_,1_3_8 ____5_,2_0_6_,0_7_4 ___3_,2_8_9_,5_2_8 ___1_9_,0_1_8_,7_4_0
    
    31/12/2018 ___7_8_,0_7_0_,9_1_0 ___2_6_,7_2_2_,8_1_5 __1_3_,8_7_6_,5_1_9 __1_1_8_,6_7_0_,2_4_4
    
    3T1o/t1a2l /c2a0r1ry8ing amount __4_5_0_,1_8_2_,0_0_1 ___4_9_,0_9_9_,2_4_2 _1_5_6_,1_9_2_,2_1_6 __6_5_5_,4_7_3_,4_5_9
    
    31/12/2017 __4_5_4_,1_8_3_,3_6_7 ___5_2_,1_5_0_,0_1_3 _1_4_9_,1_1_5_,5_1_7 __6_5_5_,4_4_8_,8_9_7
    
    (2) Land use right's location and years are as follows:
    
    Item 31/R12M/2B018 31/R12M/2B017
    
    OInutthoefPthReCP(RwCith(mino5r0e tyheaanrs5)0 years) _4_13_0_9,_,38_80_01_,,_549_092_ __4__2285_,_,92_52_66_,,94_51_0_7
    
    _4__5_0_,1_8_2_,_00__1 __4_5_4_,_1_8_3_,3__67_
    
    3A0s,8a8t1,34109D( e3c1emDbeceerm2b0e1r82, 0t1h7e: GRMrouBp25h,a9s56la,4n1d7)u,sreeprriegshetntwinigththineffinreiteehouldselfaunldlihveelsd obfy RCMhilBe
    
    oInndwomhiictah tWheinaemGorrtoizuaptiaonndisAnuosttrraelqiauirKeidl.ikanoon Estate under relevant Chile and Australia laws,
    
    A(3s1aDt 3ec1eDmebceerm2b0e1r72:011483,,t8h9e0G,5r3o3u)p, whahsicthradisemhealrdk bwyitChhinilfeinIintedoumseiftualWlivinese oGfrRouMpBan1d54A,1u5s0tr,9al3i3a
    
    pKrielsikeanntovoanlueEostfatthe.e Texhpeecrteecdovfuetruarbelecaasmhofluonwt sogfentheeratteraddfermomarktheisasdseettergmroiunpedtoawcchoircdhinthge tsointghlee
    
    yasesaertss(othfetr"apdreomjeacrtkinrgigphetrbioedlo"n) gbsa.sTedheomn athneaglaetmesetnftinparenpcaiarelsbtuhdegecat sahssfulomwptpioronj,eacntidonesftoimr fautetusreth5e
    
    fclaoswh fplorowjescatifotenrs tahreef9u.t0u%re 5anydea1r0s.1(t%he, r"essupbescetqivueelnyt. pAerikoedy")a.sTsuhme pdtiisocnouinnt trhaeteessutismedateinotfhefuctausrhe
    
    dcaestehrmflionweds bisasethdeonretvheenuinedugsrtorwy tahndratthee ienxptehcetepdrogjreocwtitnhgrapteeroiofdC. hSiluechIndreovmeintaueWginroewGthrourapteanids
    
    2A.u5s%tr,arleiaspKeciltiikvaenlyo.on Estate. The revenue growth rates in the subsequent period are 3.0% and
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    12. Intangible assets - continued
    
    (2) Land use right's location and years are as follows:- continued
    
    aTshseesGsmroeunpt roefcwoghnicizheisstmheadtreadaetmthaerkenwditohf ienafcinhitreepuosretfiunlgliyveeasr.aTshinetamnagnibagleemasesnettsb,etlhieeviemsptahiartmaennyt
    
    rgeraosuopntaoblwehcihchantghee soifngthleeaasbsoetvseoafstsruadmepmtiaornksriwgihltl bneoltonregssueltxcineetdhiengtoittsalrebcooovkervaabllueeamofotuhnet.asset
    
    Amcacnoargdeimngenttobetlhieeveresstuhlet reofisinmopiamirpmaeirnmt eanstselossssmoennt,thobsye tthraedeemndarkofwi3t1h iDnfeinceitme buesrefu2l01li8v,esthoef
    
    the Group.
    
    A(Dseacte3m1bDere3ce1m, 2b0e1r72:0R1M8,Bth1e6i4n,t0a5n1g,i9b9l6e)a,sPsleetawseitrhefreersttroicNteodteowVnI-e4r5shiinpdisetRaiMl. B 218,070,414
    
    13. Goodwill
    
    Investee 31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    Etablissements Roullet Fransac
    
    Di(c"oFt rPaanrstancerSs,alSe.sL") 13,112,525 - - 13,112,525
    
    So(c"ieDteicCoitv"i)le Argricole Du Chateau 92,391,901 - - 92,391,901
    
    IndDoemMitairWeflienuers ("Mirefleurs") 156,,786710,,414105 -- -- 156,,786710,,411450
    
    Australia Kilikanoon Estate ______-___ _3_7_,0_6_3_,1_3_0 ___-___ __3_7_,0_6_3_,1_3_0
    
    Total _1_2_8_,1_3_5_,9_8_1 _3_7_,0_6_3_,1_3_0 ___-___ _1_6_5_,1_9_9_,1_1_1
    
    DTheeceGmrboeurp20a1c3q,uiSreepdteFmrabnesra2c01S5alJeasn, uDaricyo2t0a1n6danMdirJeufllyeu2r0s17anrdesCpehcitlieveIlnyd,ormesiutaltiWnginine rGesrpoeucptivine
    
    6go,8o7d0w,1il1l5.aTmhoeunGtirnoguptoacqRuMireBd A13u,s1tr1a2li,5a2K5,ilikRaMnoBon9E2s,3ta9t1e,9in01J,anRuMaryB 21051,87,6r1e,s4u4l0tingangdooRdMwiBll
    
    aimmpoauinrmtinegnt ttoesRtinMgB. 37,063,130, which have been allocated to corresponding asset groups for
    
    fTlohwe rse. cFouvteurraebcleasahmfolouwntporfojtehcetigornosuparoefmasasdeetsbiasseddetoenrmthineerdecbeyntthlye fpinreasnecnitalvbaluudegoetfsitfsorfutthuerefuctausrhe
    
    (5suybesaerqsuepnetripoedrio(pdr)o. jDecisticnogunpterraitoed)usaenddinpcreaslcuumlaetinthgatthecarsehcofvloerwasbleafatemrouthnets porfojFercatninsgac pSearlieosd,
    
    Danidco1t 0M.1i%ref(l2e0u1rs7,: In1d0o.3m%it,a8W.5i%ne, a1n0d.3A%u,st9r.a6li%a KainldikaNn/oAo)n rEesstpaetectaivreel1y1. .1O%ne, 8k.9e%y ,a1ss1u.1m%pt,io9n.0%in
    
    pbarosjeedctoinngthfeuteuxrpeeccatesdh gfrloowwsthisrattheeofgrthoewitnhdruastteryofansdaleeascihngproroujpecotfinagsspeetsr.ioGdr,owwhthicrhaties ocfomsapleusteidn
    
    Esusbtasteequiesnt2p.0e%rio, d2o.0f%F,ran2s.0ac%S, a3le.0s,%D,2ic.5o%t, M(2ir0e1fl7e:ur2s,%I,nd2o%m,ita2%W,in3e%andanAdusNtr/aAli)areKspileicktaivneoloyn.
    
    McauanseagbeomokenvtaolufetsheofGtrhoeuspe sbuebliseivdeiasrtihesateaxncyeerdesasthoeniarbrleeccohvaenragbelseianmthoeunatbso.ve assumptions will not
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    13. Goodwill- continued
    
    fAocrcgooroddinwgiltlointhteheasrespesosrmtinegntp, etrhieodG. roup believes that no impairment provision need to be made
    
    14. Long-term prepaid expenses
    
    31/R12M/2B017 InRcMreaBse AmoRrMtizBation 31/R12M/2B018
    
    LLaanndd lreeaqsueispitrieopnayfemeents 4536,,397665,,033865 -- (2(,514487,,269272)) 4543,,242177,,776393
    
    GLeraeesenhinogldfeime provement 125,862783,,323643 24,5131,,632036 (8(,911050,,498252)) 141,722745,,467427
    
    Others ___3_,_16_6_,_2_1_3 __2_,_19_8_,_3_7_3 __(_3_6_9_,7_9_1_) ___4_,_99_4_,_7_9_5
    
    _2_3_0_,_00_9_,_2_3_1 _2_6_,_71_3_,_3_0_2 (_1_2,_0_8_2_,1_1_7_) _2_4_4_,_64_0_,_4_1_6
    
    N20o,t4e0:6T,4h2e9,grreefeenrintogNfeoetetrVaIn-s1f0erfroerddfertoamils.CIP to long-term prepaid expenses amounted to RMB
    
    15. Deferred tax assets/liabilities
    
    aDuetfheorrrietdiestaoxf tahsesestasmaentdaxdseufebrjreecdts,tathxuslianboitliptireesseanrteednwotithretlhaetendettoaminocuonmt aefttearxneotftinthge. same tax
    
    (1) Deferred tax assets:
    
    31/12/2018 31/12/2017
    
    Tdiefmfepreonrcaerys Defaesrsreetds tax Tdiefmfepreonrcaerys Defaesrsreetds tax
    
    RMB RMB RMB RMB
    
    Un-recaolmizpeadnpyrotrfaint sfarocmtioinnstra 602,476,583 150,619,145 618,591,681 154,647,920
    
    RUentpiraeimd benotnubsenefit 12461,,818086,,224573 356,,458456,,856114 9274,,946820,,872527 236,,697915,,621114
    
    ADsesdeutcitmibpleailromsseenst provision 22642,,968373,,292996 676,,516760,,380877 34255,,653995,,035992 886,,538948,,383478
    
    ADessfeertsreidmipnaciormmeent loss 86,262671,,249135 18,816788,,956823 109,769874,,065242 24,128854,,280438
    
    Accrued rebate - - 13,413,655 3,353,415
    
    1,144,981,016 285,436,259 1,236,165,042 308,121,396
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    15. Deferred tax assets/liabilities - continued
    
    (2) Deferred tax liabilities
    
    Item Taxable tempo3ra1r/y12/2018 Deferred Taxable tempo3ra1r/y12/2017 Deferred
    
    difRfeMreBnce taxRliMabBility difRfeMreBnce taxRliMabBility
    
    bRuesvianleusasticoonmsbuirnpaltuisoninnot
    
    under common control 81,338,130 22,010,647 89,316,823 24,264,203(3) Deferred tax assets and liabilities not recognized
    
    31/R12M/2B018 31/R12M/2B017
    
    Deductible losses _17__1_,4_3_0_,8_3_1__ __1_5_0__,3_2_0_,_03_9_
    
    (4) Deductible losses not recognized as deferred tax assets will expire in:
    
    31/R12M/2B018 31/R12M/2B017
    
    22001189 7,311-,273 7,311-,273
    
    22002201 8425,,968605,,726136 8452,,698605,,726136
    
    22002232 ___21_1,4_1_,13_06_,2_7,9_782_7_ ____1_4,_3_6_2_-,_78_7_
    
    __1_7_1,_4_3_0_,8__31__ ___15__0,_3_2_0_,_0_39_
    
    16. Short-term borrowings
    
    31/R12M/2B018 31/R12M/2B017
    
    CMroerdtigtalgoeadnsloans 60795,,246072,,873082 66458,,499349,,666224
    
    Guaranteed loan ____3_,_3_3_1_,8__70_ _________-___
    
    ___68_8_,_0_0_2_,4__10_ ___7_1_4_,4_3_4_,_28__6
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    16. Short-term borrowings - continued
    
    As at 31 December 2018, short-term borrowings detail were as follows:
    
    Loans amount Exchange rate RMB Ninattuerreesotf Iinntecroensttrraactte InYteeraersetndreadte
    
    % %
    
    CCrreeddiitt llooaannss ((RRMMBB)) 145000,,000000,,000000 11..00000000 140500,,000000,,000000 FFllooaattiinngg 1AynenaruaLlPbRen- c0h.0m4a(rNkortaete1) 44..3355
    
    CCrreeddiitt llooaannss ((UEUSDR)) 7,090102,,040505 67..88643723 487,,014620,,430008 FFiixxeedd 03..9867~~42..9530 30..9867~~42..5903
    
    MMoorrttggaaggeedd llooaannss ((EUUSDR)) 46,,600208,,030909 76..88647332 2527,,041525,,080302 FFiixxeedd 04..3225~~40..3958 40..3252~~04..3958
    
    Guaranteed loan(AUD) 690,543 4.8250 ___3_,_33_1_,8_7_0 Fixed 3.00 3.00
    
    __6_88_,_00_2_,4_1_0
    
    Note 1:LPR is the basic interest rate of the People's Bank of China.
    
    AAtsriaot 3"1) Dfaeccteomrinbger o2f01a8c,comuonrttsgargeecdeilvoaabnlse wfreorme HBaacniecnodadey VSainbeaddoesll,MSa.rAqu. eestcd.elEAUtRrio6, ,S6.2L8.U,39(9"
    
    (IntrdaonmslaittaedWaisneRmMoBrtg5a2g,e0d15P,e0s3o27)(,36142D,4e7c0e,m00b0er(tr2a0n1s7la:RteMd Bas 4R6M,3B377,056,620)1. ,M84o9rt)gfaigxeedd alossaentss wfroerme
    
    1B9B,6V0A2,6b0a0nk). UASuDstra4l,i0a00K,i0l0ik0an(otroannsElastteadteahsasRMguBara2n7te,4e5d2,l8o0a0ns)(ofD6e9c0e,m54b3erA3u1s,tra2l0ia1n7:dRolMlarBs
    
    (equivalent to RMB 3,331,870)(31 December 2017: Nil).
    
    17. Notes and accounts payable
    
    The aging analysis of accounts payable are as follows
    
    31/R12M/2B018 31/R12M/2B017
    
    1Wtioth2inye1ayrsear 710,32,00981,2,66599 6624,,005201,,159762
    
    O2 vtoer33yyeaerasrs ______11_52_11_,,_5395__85 ______3_7_1_-,1__1_1
    
    _7_1_3_,_5_7_2_,8__81__ ___6_6_6,_4_4_2_,_8_79_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    18. Advances from customers
    
    The aging analysis of advances from customers are as follows
    
    31/R12M/2B018 31/R12M/2B017
    
    W1 tioth2inye1ayrsear 2211,,015252,,554557 3470,,007252,,625904
    
    O2 vtoer33yyeaerasrs ____2_1_,,80_36_42_,,6_50_393_ _____3_,43_18_14_,,4_764__93
    
    __2__26_,_0_7_5_,_2_44_ ___3_5_0_,8_9_4_,_15__6
    
    19. Employee benefits payable
    
    (1) Employee benefits payable as follows:
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    SPhoostr-td-teemrmisspiaoynroblelnefits 182,545,284 481,042,461 (477,694,636) 185,893,109
    
    T-erpmreidneatteiormn ibneendefpirtosvision plan __2_7_,29_89_08_,,80_59_73 __15_31_,,56_70_73_,,22_81_06 _((51_51_,,_5477_61_,,85_30_80_)) __2_6_,21_82_64_,,28_46_35
    
    _2_1_0_,8_2_4_,2_3_4 _5_4_6_,2_2_2_,9_5_7 (_54_4_,_74_2_,9_7_4_) _2_1_2_,3_0_4_,2_1_7
    
    (2) Employee benefits payable:
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    SStaalfafribeesnaenfdit bonus 1852,,011146,,341785 42187,,075823,,733748 (4(2156,,388815,,056625)) 1873,,608154,,929808
    
    SIntaclfufdweesl:fare 524,316 20,677,314 (20,740,535) 461,095
    
    MInjeudriycainl sinusruanracnece 524-,316 19,804955,,572580 (19(,180995,,400945)) 460,464505
    
    HMouastienrgniftuynidnsurance 39-,256 10,744346,,902356 (10(,473316,,607316)) 52-,510
    
    Union fee and education fee ___2_,0_6_0_,2_3_1 ___4_,1_0_9_,6_5_1 __(4_,_25_5_,8_0_3_) ___1_,9_1_4_,0_7_9
    
    Total _1_8_9_,7_5_4_,5_9_6 _4_8_1_,0_6_8_,0_0_2 (4_77_,_6_94_,_63_6_)_ _1_9_3_,1_2_7_,9_6_2
    
    Less: Non-current liabilities ___7_,2_0_9_,3_1_2 ___7_,2_3_4_,8_5_3
    
    Short-term payroll _1_8_2_,5_4_5_,2_8_4 _1_8_5_,8_9_3_,1_0_9
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    19. Employee benefits payable - continued
    
    (3) Predetermined provision plan
    
    31/R12M/2B017 InRcMreaBse DeRcMreBase 31/R12M/2B018
    
    UPennesmiopnloyment insurance __29_7_,_55_90_12 __5_0_,_9563_48_,,_92_89_64 _(_5_0(,_69_06_88_,,04_46_44_)) __22_4_,_53_33_32
    
    __29_8_,_0_9_3 __5_1_,_50_3_,_2_8_0 _(_5_1,_5_7_6_,5_0_8_) __22_4_,_8_6_5
    
    gTohveerGnrmouenptpianrsttiictiuptaiotens. iAncpcoenrdsiionng itnosuthraonsceepalannds,untheempGlrooyumpenptayisnspuerannsicoenpalannds uensetambplilsohyemdebnyt
    
    Ainpsuarrtanfrcoemeathcehsemmonotnhtholyn etxhpeenbsaessis, tohfe G12r%ou-p32d%oesanndot 0b.e5a%r -a3n%y fularstht eprepriaoydmseanltaroyblrigesaptieocnt.ivTehlyis.
    
    yReMarBth1e,1G41ro,6u0p5s)horuesldpepcatiyveRlyMiBnto50p,5en3s4i,o9n86inasnudraRncMeBan9d68u,n2e9m4p(l2o0y1m7e:nRt MinBsur4a8n,c8e3.4A,0s66atan3d1
    
    DanedceRmMbeBr 3230218re, stpheectGivreoluyp(3h1asDuencpeamidbepre2n0si1o7n: RanMdBun2e9m7p,5l9o1ymanendtRinMsuBra5n0c2e )o,fwRhMichBis22d4u,e53to3
    
    pthaeympeennstisohnaivnesubreaenncepaainddafutneermthpeloeynmd eonftthinesruerpaonrcteinpglapneraiot dth. e end of the reporting period. These
    
    20. Taxes payable
    
    31/R12M/2B018 31/R12M/2B017
    
    VCoalnuseumadpdteiodntataxx 3268,4,6432,68,66486 4354,,696811,,062962
    
    CUorbrpanorlaatniodnuisnecotamxe tax 402,8,64796,5,50277 328,,864345,,268973
    
    ICnidtyivcidounastlriuncctoiomnetataxx 54,,366379,,071992 57,,680695,,921870
    
    OPrtohpeersrty tax ____5_5,_,31_16_55_,,13_02_83_ ____44_,_,86_44_78_,,66_4_1_74
    
    _1__28_,_9_1_2_,7__9_0_ ___14__5,_0_9_4_,_1_56_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    21. Other payables
    
    21.1 Presented by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    IOnttheerersptapyaaybalbesle _6__07_,_7_76_17_,20_,86_24_6_ __6_0__2_,97_76_41_,,23_1_59_0
    
    _6_0__8,_4_7_9_,8_9_0__ ___6_03__,7_3_5_,_56_9_
    
    21.2 Other payables
    
    (1) Natures of other payables are as follows
    
    31/R12M/2B018 31/R12M/2B017
    
    PPaayyaabblleestofodreeaqleuripdmepeonstiatnd construction 115529,,819215,,713384 113390,,771060,,796773
    
    RPaoyyaabltlyesfefoer transportation 7838,4,8146,79,77285 7277,,280478,,099292
    
    WAdivthehrtoilsdininggcporsotsmotion costs 8105,,771154,,446001 11138,,843134,,696505
    
    DEmeppolsoiytseefrdoempossuipt pliers 125,,980016,,276106 133,,308227,,159352
    
    OPathyaebrsles for contracting fee ___3_2_67_,,20_57_09_,,50__6884_ ___3_480__,,07_76_01_,,56_74__51
    
    _6_0__7_,7_6_7_,0__64__ ___6_0_2_,9_6_4_,3__1_9
    
    (2) Description of significant other payables aged more than one year
    
    Company ARmMouBnt Reasons
    
    aBnedijiTnegchQnionglolagnygDAevgerilcouplmtuerentSLciimenicteed
    
    CVoAmSpFaCnyom("pBaeniyjing Qinglang") ___94_,,84_97_38_,,85_60_66 PPaayyaabblleess ffoorr ccoonnttrraaccttiinngg ffeeee
    
    __1_4_,3_7_2_,3_7_2
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    22. Deferred income
    
    31/R12M/2B018 31/R12M/2B017
    
    CGuorvreernntmlieanbtilgitriaensts 15,860,254 16,878,199
    
    Non-current liabilities ____7_0,_3_6_7_,_03__9 ___9__2_,9_1_8_,8_5__5
    
    ___8_6_,_2_2_7_,2_9_3_ ___1_09_,_7_9_7_,0_5_4_
    
    Government grants:
    
    Opening Addition non-Roepceorgatniinzgedinicnome Closing AsRseetlsa/tIendcotome
    
    RMB RMB /otheRrMinBcome RMB RMB
    
    SWhiinheezbiacshealtieqauuorprborjeewctagfuenpdrsoject 94,,277369,,640000 -- ((21,,428304,,090000)) 63,,939064,,650000 AAsssseettss
    
    TXeincjhinanogloIgnicdaulstRrieacloRnestjruuvcetnioantioPnroajnedct 17,064,000 - (1,422,000) 15,642,000 Assets
    
    NSpinegcixailasiunpdpuosrttryforrevinitfarlaisztartuicotnuraendfacilities 5,300,000 - (1,060,000) 4,240,000 Assets
    
    TotuercihsmnoDloegvyerloecpomnesntrtuFcutinodn Sfuunbdssidy Project 1,058060,,000000 -- (1,086,-000) 500-,000 IAncsosemtse
    
    (SHuupapnorretne)ntwerinperisperoddeuvcetlioopnmceonntstsrpuecctiioalnffuunnddss 103,,260000,,000000 -- (10(,240000,,000000)) 3,200-,000 IAncsosemtse
    
    Wisnpeeceilfeicctrfounnidcstracking system 3,192,311 - (667,054) 2,525,257 Assets
    
    MWiiynueninPdruosptarygasnpdeaciDficepfaurntmdsent transfer 878448,,900405 -- ((188886,,090450)) 558-,000 AAsssseettss
    
    ShAanrdeaoncgonPsetnruincstiuolna fBulnudesEconomic 8,000,000 - (2,000,000) 6,000,000 Assets
    
    Infporromjeacttiotnecshynsotelomgycofnusntdrusction 3,480,000 - (580,000) 2,900,000 Assets
    
    CRerodsws-ibnoerdpehreen-oBliucssinreessesaprcrohjepcrtosjescutbssfiudniedss 278042,,660115 300-,000 ((122824,,360591)) 880-,256 IInnccoommee
    
    GWraatpeer bpaoslleuctioonnstarbuactteimonenptropjreocjtect 352200,,103020 -- ((152103,,600020)) 206-,530 IAncsosemtse
    
    IInnfdruassttrriuacltduerevecloonpsmtreuncttisounppporortjepcrtoject 361,,980403,,070500 -- (4(,110205,,000000)) 312,,780108,,075000 AAsssseettss
    
    Suebnsiedrgyyf-osravuipndgattiencghnoof leocgoynomic and 1,154,700 - (128,300) 1,026,400 Assets
    
    Spiercriiaglatfiuonndpsrfoojrecetfficient water saving - 1,720,000 (81,000) 1,639,000 Assets
    
    RGeuliodcaantcioenfuanlldoswfaonrcseerfvoircbeoiinlderusretrnyodveavtieolnopment _____--__ __2_,01_00_00,,_0000_00 ___(1_0_,-0_00_) __2_,0_90_00,,_0000_00 IInnccoommee
    
    Total _1_09_,7_9_7,_05_4 __4_,1_2_0,_00_0 _(2_7,_68_9_,7_61_) __86_,2_27_,2_9_3
    
    Less: Non-current liabilities due within one year __16_,8_78_,1_9_9 __15_,8_60_,2_5_4
    
    Other non-current liabilities _9_2_,9_18_,8_5_5 __70_,3_67_,0_3_9
    
    aAcscoautnt3e1d iDnepcreomfitbeorr l2o0ss18w,itthhien oGnreouypearr,eacnodgnriesceogcnuirsreenntonl-iacbuirlrietynt flioarbidlietyfefrorerddeifnecroremdeintcoombee
    
    to be accounted in profit or loss over one year.
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    23. Non-current liabilities due within one year
    
    31/R12M/2B018 31/R12M/2B017
    
    LLoonngg--tteerrmm bpoayrraobwleisngdsueduweitwhiinthoinneonyeeayrear __1_31_8_4,,_09_40_00_,,07_80_0_8 ____376_4,,_09_05_40_,,_80_020_7
    
    ___1_52__,9_4_0_,7_8_8_ __1_1_0_,_9_5_4_,8_2_7_
    
    LAosnagt-3te1rmDepcaeymabbelers2d0u1e8,wLitohning-otenremyebaorrrroewfeirnsgtsodNuoetwe iVthI-in25o.ne year refers to Note VI-24,
    
    24. Long-term borrowings
    
    31/R12M/2B018 31/R12M/2B017
    
    CMroerdtigtalgoeadn loan 431,,982045,,974166 668,,618932,,354140
    
    Guaranteed loan __1_1__0,_7_5_0_,0_0_0_ ____8_1,_2_5_0_,0__00_
    
    ___1_56__,4_8_0_,6__62_ ___15__6_,1_2_5_,_85__4
    
    As at 31 December 2018, loans detail is as follows:
    
    Loans amount Exchange rate Amount ofNinattuerreest Interest rate borYroewari-negndrate Douneewyietahrin Donuee yoevaerr
    
    RMB % %
    
    GCrueadriatnltoeaend(lEoaUnR()RMB) (Note) 8171,,273504,,900504 17..80047030 13891,,127510,,500060 FFloiaxteidng 5 ye1a.0r0L-P2.R5-30.9 1.040.2-725.53 9178,,375650,,706000 6421,,580050,,070460
    
    GMuoarrtganagteeeddllooaann((AEUURD))((NNoottee)) 10,080600,,010601 47..88425703 __4_86,,_2754_09,,_0904_04 FFiixxeedd 31..8000 31..8000 ___2,_82_5-,_02_8 __4_83,,_2952_04,,_0901_06
    
    __27_5,_42_1,_45_0 __11_8,_94_0,_78_8 __15_6,_48_0,_66_2
    
    NfoorteR:&AsDatC3e1ntDreeccermedbiterg2u0a1ra8n,tTeeh,eRseMcuBre8d1l,o2a5n0,i0s0t0he(3lo1ngD-etecremmbloearn2b0o1r7r:owReMdBby1t0h0e,0c0o0m,0p0a0n)y,
    
    mcoollratgteargaeldfoloranlosawnserferoAmtrioPoupsuinlagrfiExsepda?asosle, tsEUEURR846,02,6146,117(0tra(tnrsalnasteladteadsasRRMMBB63,734,496,924,242),5)(3a1s
    
    bDoercreomwbederb2y01A7u:stRraMliaBK9i,l5ik0a2n,3o7o2n).ETshteategufarroamnteAeudstlroaalina(A&UNDe)wisZtehaelalnodanbaonfkAinUg(Dtr1a0n,s0la0t0e,d00a0s
    
    RMB 48,250,000)(31 December 2017:Nil), which was guaranteed by the Company.
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    25. Long-term payables
    
    31/R12M/2B018 31/R12M/2B017
    
    FAugnridcuolftuCrhailnDae(v"CelAopDmFe"n)t __2_2__5_,0_0_0_,_00__0 ___2_59__,0_0_0_,_0_00_
    
    I3n7.920%16o,fRthMeBre3g0is5te,0r0ed0,0c0a0pitfarlo.mAcCcAorDdiFngwtaos tihneveisntveedstimn eRn&t aDgrCeeemnterne,t, CCAADDFF awccilolurnetceodveforyr
    
    iunnvpeasitdmpernitncfuipnadlspoevrearn1n0umye.aIrns,atdhdeiitniovnesttomtehnet fiinxceodmiencroemceeiv, eCdAeDquFawl tioll 1n.o2%lonogf etrheenrejomyaointhinegr
    
    nproomfiitnsalolyr beqeauritythienvloesstsmoefntR, &isDacCtueanlltyrea.Tdehbetreifnovreestamltehnotu(gFhintahneciianlvdeisstcmoeunntt lionanR)&. TDheCgernotruep,
    
    rtaekpeaytshtihseinpvriensctimpaelntofaRs MloBng3-4te,0rm00,p0a0y0abinle2s,01w8h. iRchefemr etoasuNroetde VinI-a4m5ofrotrizdeedtacilossto.fTmhoertGgaroguedp
    
    and pledged assets.
    
    Lpoanyga-btelersm Yield rate Investment date Teorfmrienpaatyiomnednatte Due within 1 year Due after 1 year andMploerdtggaegdeadssets
    
    RMB RMB RMB
    
    67,000,000 1.2% 12 January 2016 24 December 2025 10,000,000 57,000,000 Cainshtaanngdibbleanakssaentsd
    
    176,000,000 1.2% 29 February 2016 28 February 2026 22,000,000 154,000,000 Fixed assets and intangible assets
    
    ___1_6_,0_0_0_,_0_0_0 1.2% 16 June 2016 22 May 2026 __2_,_0_0_0_,_0_0_0 __1_4_,_0_0_0_,0_0_0_ Cash and bank
    
    __2_5_9_,0_0_0_,_0_0_0 __3_4_,0_0_0_,_0_0_0 _2_2_5_,_0_0_0_,0_0_0_
    
    26. Other non-current liabilities
    
    31/R12M/2B018 31/R12M/2B017
    
    Employee benefit __7_,2_3_4_,_8_5_3 _7_,_2_0_9_,3_1_2_
    
    Aansdaatb3o1vDe.eAcecmcobredrin2g01to8,theembpolonyuesepbaeynmeefinttrsecphreesdeunletsodfe2p0o1s8it,ftrhoembobnounsusisaecxcprueecdtefdotrombaenpaagiedrs
    
    during 2020 to 2022.
    
    27. Share capital
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    AUnsrheasrteriscted shares 453,460,800 - - 453,460,800
    
    B shares _2_3_2_,_00_3_,_2_0_0 ___-___ ___-___ _2_3_2_,0_0_3_,_2_0_0
    
    Toatanldotfoutanlrsehstarriecsted shares _6_8_5_,_46_4_,_0_0_0 ___-___ ___-___ _6_8_5_,4_6_4_,_0_0_0
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    28. Capital reserve
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    SOhthareer premium _5_6_50_,,_9013_68_,,_58_85_83 ___--___ ___--___ _5_6_50_,,90_13_68_,,_58_858_3
    
    Total _5_6_5_,_95_5_,_4_4_1 ___-___ ___-___ _5_6_5_,9_5_5_,_4_4_1
    
    29. Other comprehensive income
    
    2018 Less: last year other 2018 Post-tax Post-tax
    
    Obapleannicneg Baemfooreu-ntat x coimnpPr/eLhecnusrirveentinyceoamr e taxLeexspse:nse atttoripbaurteanbtle atttroibNutCabI le Cbalolasnincge
    
    Otihnecrocmoemtporebheernescivlaessified
    
    Fotroeipgrnofciutrarnendclyossstatement 3,109,240 (376,524) - - (143,863) (232,661) 2,965,377
    
    translation difference __3,_10_9,_24_0 _(3_76_,5_2_4) __-__ __-__ _(1_43_,8_63_) _(2_32_,6_6_1) __2_,96_5_,37_7
    
    30. Surplus reserve
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    Statutory surplus reserve _3_4_2_,_73_2_,_0_0_0 ___-___ ___-___ _3_4_2_,7_3_2_,_0_0_0
    
    AInssaocccioartidoanncoef twheithCothmepCanoym, pthaenyCoLmawpanoyf itshereqPueiorpelde'tsoRapeppruobplirciatoef 1C0h%inoaf athned ntehtepArorftiitclteosthoef
    
    s5t0a%tutoorfythseurrpelguisstereresedrvsheaurentcilapthiteala. cTchuemCuloamtepdanbyaladnocees onfotthaeppsrtoapturtioatrey nseutrpplruosfirtetsoertvhee rseuarcphluess
    
    reserve in 2018.
    
    sTuhreplCusomrepsearnvye.caDnisacpreptrioopnrairaytesudripsclurestiroensearrvyescuarpnlubse ruetsileirzveed atofteorffaspept rtohperidaetifoicnitoofrthinecrsetaatsuetothrye
    
    share capital after approval.
    
    31. Retained earnings
    
    31/R12M/2B018 31/R12M/2B017
    
    PRreotafiitnaetdtreibaurntainbgles tboroshuagrhethfoolrdwearsrdof the Company 17,0,4320,96,0328,19,62918 61,,602301,,161985,,506526
    
    Less: Dividends paid in respect prior year's profit _(_3_4_2_,7_3_2_,_0_0_0_) _(_3_4_2_,7_3_2_,_0_0_0_)
    
    Retained earnings carried forward 8_,_00_8_,_9_8_2_,_5_4_7_ _7_,_3_0_9_,0_8_1_,_6_1_8
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    31. Retained earnings - continued
    
    (1) Appropriation to surplus reserve by subsidiaries
    
    Atos sautr3p1lusDerceesemrvbeerb2y01s8u,btshideibaraileasncaemoofutnhteinGgrotoupR'sMuBnap5p4r,o3p3r6i,a5t4ed3 p(r3o1fitDseicnecmlubdeera2p0p1ro7p:riRaMtioBn
    
    51,994,942).
    
    (2) Cash dividends approved by general meeting
    
    Amcacdoer.dOinngtthoe tbhaesiasnonfua6l8g5e,4n6e4ra,0l0m0eiestsiunegdosnha2r5e Mcaapyita2l0, 1R8M, dBiv5id.0en(idnsclduidstirnigbuttaixoens)plfaonr hevaserbye1en0
    
    shares was distributed to shareholders, in total RMB 342,732,000 cash dividends.
    
    (3) Profit distribution decided after the balance sheet date
    
    6A8c5c,o4r6d4in,0g00toisasupedrosphoasraelsoinf 2th0e18b,ocaarsdhodfivdidireencdtosrosfaRpMproBv6ed.0o(innc1lu8dAinpgritlax2e0s1)9f,oroenvethrye 1b0assihsaoref
    
    4w1il1l,2b7e8,4d0is0t.ribTuhteedabtoovaellprthopeosshalarreehgoalrddeirnsg. Tdhiveidaegngdrsegdaitsetriabmutoiounntisofyectastho dbieviadpepnrdoviesdRiMn Ba
    
    shareholders' meeting.
    
    32. Operating income and costs
    
    Operating income is analysed as follows:
    
    R20M1B8 R20M1B7
    
    POrtihnecripoapleorapteinragtiinngcoinmceome _5_,0__766_5_,,29_76_95_,,_604_94_6 _4_,_85_7_66_,,13_67_68_,,6_53_9_09
    
    _5_,1__4_2,_2_4_4_,7_4_0_ _4_,9_3_2_,_5_4_5_,2_2_9_
    
    Operating cost is analysed as follows:
    
    R20M1B8 R20M1B7
    
    POrtihnecripoapleorapteinragticnogsct ost _1_,_87_2_82,_,69_92_01_,,4_06_398_ _1_,_6_425_5,,_96_90_10_,,66_1_6_36
    
    _1_,_9_0_1_,6_1_1_,5__0_7 _1_,6_7__1_,5_9_2_,2_7__9
    
    TInh2e0o1p8e,raOtivnegr 8in7c%om(2e0f1o7r:thoeveGrr9o1u%p )isomf tahienlsyalfersomgetnheerastaeldesinofPwRiCn.e, brandy and sparkling wine.
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    33. Taxes and surcharges
    
    R20M1B8 R20M1B7
    
    CCoitnyscuomnpsttriounctitoaxn tax 13579,,605375,,738328 17572,,287479,,392145
    
    EPrdoupcearttiyontafxee and surcharges 3281,,476621,,570078 2335,,811313,,257115
    
    SLtaanmdpustaextax 142,,500978,,778950 113,,894754,,798314
    
    Others _____2,_9_6_7_,_7_6_4 ____5__,3_5_9_,2__83_
    
    ___27__6,_4_9_1_,6_7_4_ __3_1__0,_2_5_2_,0__2_3
    
    For detail standards of tax rate please refer to Note V.
    
    34. Selling expenses
    
    R20M1B8 R20M1B7
    
    MSaalarkryetainngd eexmppelnosyeese benefit 238967,,458199,,162653 247282,,812488,,693201
    
    TFrreaidgehmt ark fee 17413,,977566,,030975 13729,,821388,,661372
    
    WLaabroerhfoeuese leasing expenses 4725,,063686,,625132 6573,,807650,,813562
    
    ADedpvreerctiisaitniognfeceosst 4315,,845107,,274706 3344,,976533,,009809
    
    DCoesnifgenrecnocset expenses 3292,,473317,,725157 2371,,622096,,127273
    
    TSeracvueriltlyinagnedxspaennistaetsion fee 1272,,187966,,297876 1227,,765099,,522348
    
    OWfafitceer aanlldowelaencctreicity fee 119,,279077,,251484 116,,124675,,516613
    
    PTaacxkeisng cost 87,,119153,,716640 67,,717631,,933307
    
    BAumsoinrteiszsateinotnerotaf ilnomwe-vnat lue consumables 55,,675656,,630362 44,,040283,,757503
    
    Others ____29__,9_0_7_,2_1_6_ ___2_9_,_8_5_1_,_0_00_
    
    _1_,2_7_4_,_5_9_9_,1_4__6 _1_,_27_2_,_5_2_2_,4_4_3_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    35. Administrative expense 2018 2017
    
    RMB RMB
    
    SDaelparreycaiantdioenmployee benefit 11714,,947738,,428059 17016,,355428,,312076
    
    MAdaminitneinsatrnacteivfeeeexpenses 2235,,716896,,318764 2221,,166753,,902245
    
    GAmreeonrtiinzgatfieoenamortization 1148,,178370,,084094 1202,,466378,,394641
    
    RCoennttaralcfteiensg fee 1133,,301642,,816357 1212,,141642,,262493
    
    SSeafceurpirtyodauncdtisoannictoastiton fee 89,,665929,,547054 67,,381470,,272135
    
    SEenrtverictaeinfemeent fee 56,,530506,,522568 125,,141780,,020571
    
    TOrtahveerslling expenses ____153_,,_06_33_09_,,25_5_24_5 ___1_41_,,_57_44_75_,,2_1_25_26
    
    __3_4_3__,5_8_0_,6__51_ ___33_6_,_4_6_1_,_1_33_
    
    36. Financial expense
    
    R20M1B8 R20M1B7
    
    EInxtecrheasntgiencionmcoeme (12(,606866,,302037)) (9(,118628,,767102))
    
    LInetsesr:esCtaepxiptaelnizsaetsion of interests 525,,189483,,787724 326,,123338,,272492
    
    Bank charges ____2__,3_4_2_,_7_30_ _____1,_8_4_6_,1_5_4_
    
    ___3_5,_9_4_5_,_3_0_2_ ___1__8_,5_9_0_,2_5__9
    
    37. (Reversal of)Impairment loss of assets
    
    R20M1B8 R20M1B7
    
    I(mRepvaeirrmsaelnotf)loIsnsveesnftroormy iomthpearirrmeceenitvables (_9_1_2_,_1-_6_6_) ___7_,39_53_48_,,_87_04_58
    
    (_9_1_2_,_1_6_6_) ___8,_2_9_3_,_5_53_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    38. Other income
    
    Project Subsidy R20M1B8 R20M1B7 Assets/income related
    
    STpaxecrieaflufnudnds for manufacturing industry 64,,578570,,707030 147,1,7060,50,50600 IInnccoommee
    
    INnidnugsxtiraiailnddeuvsetrloyprmeveintatlsizuaptpioonrtapnrdoject 4,100,000 - Assets
    
    Protejecchtnfoulnodgsy reconstruction funds 21,,028806,,000000 23,,228905,,000000 AAsssseettss
    
    ShAanrdeaoncgonPsetnruincstiuolna fBulnudesEconomic 2,000,000 2,000,000 Assets
    
    Spoecf ieanltfeurnpdrissefosr the development 42,953,900 - Income
    
    OOtthheerrss __17_6,,_04_39_03_,,_15_969_2 _1_06__,,23_45_52_,,_1629_5_9 IAncsosemtse
    
    __87_,_2_8_1_,_43_4_ _4_6__,0_3_8_,_38_4_
    
    39. Non-operation income
    
    Rexectroagonrdiziendariyn
    
    R20M1B8 R20M1B7 profiRt ManBd loss
    
    PGeonvaelrtnyminecnotmgreants 1,901-,530 71,,699003,,050701 1,901-,530
    
    Others __5_,_4_5_1_,_77__9 __7__,6_3_7_,_15__6 ___5_,4_5_1_,_77__9
    
    ___7,_3_5_3_,3_0__9 _1_7_,_2_3_0_,_72__7 __7_,_3_5_3_,3_0_9_
    
    40. Non-operation expenses
    
    Rexectroagonrdiziendariyn
    
    R20M1B8 R20M1B7 profiRt ManBd loss
    
    CDoomnaptieonnsation and penalty loss 2,527963,,881389 324974,,852989 2,527936,,883189
    
    Others ____6_6_5_,_25_1_ ____9_8_9_,_0_4_9 ____6_6_5_,2_5__1
    
    ___3_,5_3_5_,_90_8_ __1_,_6_3_1_,_4_76_ ___3,_5_3_5_,9_0_8_
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    41. Income tax
    
    R20M1B8 R20M1B7
    
    CDuefrerernretdinicnocmomeetatxax __351_24_,_,55_29_89_,,_3157_02__ __3_3__07,_,73_58_40_,,02_04_3_2
    
    _3__67__,1_2_7_,_5_22__ __3__3_8_,1_3_4_,2__45_
    
    Reconciliation between income tax expenses and profits is as follows:
    
    R20M1B8 R20M1B7
    
    IPnrcoofimt beetfaoxreextapxense at statutory tax rate 25% (2017:25%) 1,345028,,165112,,962985 1,337412,,992871,,796413
    
    CEfhfaencgt eosf idnifofepreennitngtaxbarlaatnecseaspopflideedfebryrecderttaaxin subsidiaries (949,634) (9,600,821)
    
    UlianbrielcitoiegsnidsueedtDoetdaxucrtaitbeleadlojussstment 4,642,7-27 (13,3,54920,9,61967)
    
    rUetcioligznatiizoendopfreDveioduuscltyible losses which were not - (6,157,735)
    
    WNornit-ed-eodffucotfibdleefeerxrpeedntsaexsassets ____5_5,_,47_98_56_,,2_219__22 ____71__,,15_51_20_,,0_998__45
    
    Income tax expenses __3_6_7_,1_2_7_,5_2__2_ __3_3__8_,1_3_4_,2_4_5_
    
    42. Basic and dilutive earnings per share
    
    oTrhdeincaarylcuslhaatiroenhooldfebrsasoicf ethareniCngosmppaenryshdaurreinigs bthaesedyeaorn atnhde cthoenswoleidigahteteddparovfeirtagatetrinbuumtabbelre otof
    
    outstanding ordinary shares.
    
    R20M1B8 R20M1B7
    
    EaCrnoinngsoslidated profit attributable to ordinary
    
    shareholders of the Company 1_,_04_2__,6_3_2_,9_2_9__ _1_,0_3_1_,_6_9_5_,_0_56_ShWareesighted average number of outstanding
    
    ordinary shares ___6_85__,4_6_4_,0_0__0 __6__8_5_,4_6_4_,0_0_0_Basic earnings per share _________1_.5_2_ _________1_.5_1_VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report42. Basic and dilutive earnings per share - continued
    
    The Company does not have potential dilutive ordinary shares.
    
    wFrhoimchtwheobualdlaanfcfeecsthteheet nduatmebtoertshoefdtahteewofeiagphptreodvaavl eorfatgheisnruempobretr, othfeoruetasrtaenndoinsgubosfeoqrudeinntareyvents
    
    shares.
    
    43. Notes to consolidated cash flow statement
    
    (1) Cash received relating to other operating activities:
    
    R20M1B8 R20M1B7
    
    GInotevreersntminecnotmgreants 577,,817213,,895030 203,,983390,,075792
    
    PReenfualntdyaibnlceodmeeposits of notes payable 1,901-,530 476,,999030,,500710
    
    Others _____5_,8_0_6_,5_8_9_ _____5,_5_7_3_,5__03_
    
    ___7_2,_7_0_3_,_87__2_ ____8_5_,2_3_6_,9_0__5
    
    (2) Cash paid relating to other operating activities:
    
    R20M1B8 R20M1B7
    
    SGeelnlienrgaleaxnpdenasdems inistrative expenses 911480,9,16162,8,35850 190567,,990025,,176636
    
    ROethfuernsdable deposits of notes payable ____4,_6_3_7_,0_-_82__ _____28,,_10_00_30_,,_005_00_9
    
    1_,0__63__,7_1_6_,3_1_7__ _1_,_0_74__,9_1_0_,9_8_8_
    
    (3) Cash paid for the purchase subsidiaries and other equity:
    
    R20M1B8 R20M1B7
    
    LCeasssh: pCaaidshfoarndacbqauniksitiofnoroAf AusutrsatrlaialiaKKiliikliaknaonoononEsEtasttaete 107,194,420 -
    
    Cash paid foartaaccqquuisisitiitoionnodfaItnedomita Wine 1,359-,765 318,867-,650
    
    Less: CashWanidnebaantkacqfuoisriItniodnomdaittea _________-___ ___1__5_,0_7_1_,_1_07_
    
    __1_0__5_,8_3_4_,_6_5_5 __3_0_3__,7_9_6_,_5_4_3
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    43. Notes to consolidated cash flow statement - continued
    
    (4) Cash received relating to other financing activities:
    
    R20M1B8 R20M1B7
    
    RR&ecDeivCeedngtroevleornngm-teenrtmgrpaanytasbrleelsatpeldedtogeadssteimtse deposit 61,700-,000 465,,180000,,000000
    
    Intpelreedstgeindctoimmee fdreopmosRit&D Centre long-term payables ______7_6_8_,_2_59_ ____1_,_0_3_0_,_80_4_
    
    ____62__,4_6_8_,2__59_ ____5_2,_9_3_0_,8_0__4
    
    (5) Cash paid relating to other financing activities:
    
    R20M1B8 R20M1B7
    
    R&D Centre long-term payables pledged time deposit __4_6_,1_0_0_,_0_0_0 _6_1_,_7_0_0_,_00_0_
    
    44. Supplementary information to consolidated cash flow statement
    
    (1) Supplementary information to consolidated cash flow statement
    
    R20M1B8 R20M1B7
    
    Ccaaslhcuflloatweds fbryomadojupsetriantgintgheacnteivt iptrieosfit:
    
    ANedtdp:Lroofsist for (reversal of) impairment of assets 1,041,(498142,,117666) 1,0383,,279933,,551583
    
    DDeepprreecciiaattiioonn ooff finixveedstamsseenttsproperties 2971,,885387,,935082 250,256940,,461030
    
    ADemporertciizaattiioonnooffbiniotalonggiicbalel aasssseettss 1129,0,03418,8,71420 1204,,019608,,798811
    
    (AGmaionrst)izlaotsisoensoofnlodnisgp-otesraml opfraespsaeitds expenses (1112,3,06882,3,15157) 13,922112,,558861
    
    FDiencarnecaeseexinpednesfeerred tax assets 2425,,868555,,174347 1232,3,13581,9,57094
    
    IDneccrereaasseeininindvefeenrtroerdietsax liabilities (18(80,,415552,,993835)) (13(58,,996955,,703316))
    
    IDneccrereaasseeininooppeeraratitninggrepcaeyiavbalbelses ((_11_33_87_,,80_89_99_,,_52_90_74_))_ _(_1(_87_80_,,52_39_36_,,_51_37_20_))Net cash flows from operating activities _9_7_5_,_9_7_8_,7__46__ ___97_3_,_2_4_3_,0_2_7_VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report44. Supplementary information to consolidated cash flow statement - continued
    
    (2) Significant investing and financing activities not involving cash receipts and payments.
    
    R20M1B8 R20M1B7
    
    Paylomnegn-tteormf inatsasnegtsibblye basasnektsaacncedpotathnecres __1_0_9__,3_7_8_,_59__8 __1__4_0_,4_9_3_,_50__7
    
    (3) Cash and cash equivalents
    
    31/R12M/2B018 31/R12M/2B017
    
    LCelosss:ing balance of Cash and bank 1,475,700,477 1,402,522,509
    
    RResetsrtircitcetdedobthaenrkmdoenpeotsairtsy funds 923,,618161,,339530 1223,,698457,,482105
    
    Deposit with a period of over three months ___1_7_3,_0_4_2_,_40_0_ ____95__,0_0_0_,0__0_0
    
    Closing balance of cash and cash equivalents _1_,2_0_6__,8_6_0_,_33_4_ _1_,1__80_,_8_8_9_,2_7_4_
    
    31/R12M/2B018 31/R12M/2B017
    
    ICnacslhuding: Cash on hand 1,206,86101,43,33435 1,180,188369,,297743
    
    Bank deposits on demand _1_,2_0__6_,7_4_5_,_9_9_9 _1_,1__8_0_,7_5_2_,_3_0_1
    
    Closing balance of cash and cash equivalents 1_,2__06__,8_6_0_,_33_4__ _1_,_18_0_,_8_8_9_,2_7__4
    
    45. Assets with restriction of ownership 31/12/2018 31/12/2017
    
    RMB RMB
    
    CAacschouanntdrbecaenikvable 9552,7,0917,57,04332 14266,,363373,,203652
    
    IFnixtaendgaibslseetasssets __2_41_18_2_,,00_07_60_,,44_21__41 __11_46_5_4,,_00_05_19_,,9_929_6_3
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    45 Assets with restriction of ownership - continued
    
    As at 31 December 2018, Cash and bank with restriction of ownership as follows:
    
    31/R12M/2B018 31/R12M/2B017
    
    RR&efuDnCdaebnlteredleopnogs-ittesromf lpeatytearbolefscpreledditged time deposit 4464,,514000,,800500 5617,,970406,,100900
    
    BHaolmanecme aininAtelnipaanyceacfuconudnst 22,,641813,,385106 24,,634157,,461305
    
    DMeaprgoisnitffoorreInCtBityCcpalradtform _______15_10_,,7_020_07_ _______11_04_,,0_00_00_0
    
    Total ___9__5_,7_9_7_,7_4_3_ __1__2_6_,6_3_3_,2_3_5_
    
    AofmgoonogdsthpeayamfoernetminenAtiloipnaeyd aitcecmous,ntthceanambeouunntloocfkeRdMaBfte2r,14583d,a8y1s6. which is the blocked balances
    
    6A,s62a8t,33919D(etcraenmsblaetred20a1s8, RthMeBam5o2u,n0t15o,f03ac2c)ou, nwtshrieccheivreafbelres wtoith reastcrcicotuendtsowrenceerisvhaibpleis AEtUriRo
    
    conducted for factoring from Banco de Sabadell, S.A. etc.
    
    As at 31 December 2018, fixed assets with restriction of ownership as follows:
    
    Company Restricted reasons 31/R12M/2B018
    
    STahleesCComompapnayny LLoonngg--tteerrmm ppaayyaabbllee ccoollllaatteerraall ffrroomm RR&&DD CCeennttrree 3394,,524576,,838074
    
    SInadleosmCitoamWpainney SLhoonrgt--tteerrmm bboorrrroowwiinnggss ccoollllaatteerraall 3753,,460612,,282495
    
    WNiinngexCiahMateoasuerC1o5.t,hLCtdh.angyu
    
    (N"iNngixngiaxWia iCnheaCteoa.uL"t)d. Long-term payable collateral from R&D Centre 184,678,629
    
    ("Ningxia Wine"). Long-term payable collateral from R&D Centre __4__4_,4_5_9_,_5_2_7
    
    Total __4_12__,0_0_6_,4_2__1
    
    VI. NOTES TO CONSOLIDATED FINANCIAL STATYEanMtaiECNhanTgSyu-PcioonneetrinWuienedCo. Ltd. 2018 Annual Report
    
    45 Assets with restriction of ownership - continued
    
    As at 31 December 2018, Intangible assets with restriction of ownership as follows:
    
    Company Restricted reasons 31/R12M/2B018
    
    TRh&eDCComenptareny LLoonngg--tteerrmm ppaayyaabbllee ccoollllaatteerraall ffrroomm RR&&DD CCeennttrree 15080,,991023,,955380
    
    NNiinnggxxiiaa CWhianteeau LLoonngg--tteerrmm ppaayyaabbllee ccoollllaatteerraall ffrroomm RR&&DD CCeennttrree __4_9_8,,_39_04_76_,,6_31_11_5
    
    Total __2_18__,0_7_0_,_4_1_4
    
    46. Foreign monetary items
    
    (1) Foreign monetary items
    
    The foreign monetary items located within China are as follows:
    
    cCurloresnincgy fboarleaingcne Excrahtaenge ClRosMinBg btraalnasnlcaeted
    
    CasEhUaRnd bank 127 7.8473 997
    
    UHKSDD ___7_,1_9_6_,_2110_3_7 _06_..8_876_3_622_ __4__9,_3_8_8_,_31_282_7
    
    (2) Overseas business entities
    
    TechoenComomicpeannvyi’rsoonvmeernset.aTs hsuebbsoidoikakrieeespdinegtebrmasienecubroreonkckyeeopfinAgtrciourarnendcFyrabnacsesdCohnamthpesprimary
    
    IPnadrtoimcipitaatiWoninseSiAsSC(h"iFleraanncpsesCoh.aTmhpesf"u)nacrteioanllalincuErureron,caynodftAheusbtoraolkiakeKeipliinkganboaosne EcustraretencisyAofUD.
    
    The foreign monetary assets and liabilities of the overseas subsidiaries are as follows:
    
    cCurloresnincgy fboarleaingcne Excrahtaenge ClRosMinBg btraalnasnlcaeted
    
    CasEhUaRnd bank 25,328 7.8473 198,756
    
    ShoUrSt-Dterm borrowings 276,196 6.8632 1,895,588
    
    USD __11_,_0_0_0_,0_0_0_ _6_.8__6_3_2 __7__5,_4_9_5_,2_0_0_
    
    VII. CHANGE IN CONSOLIDATION SCOPE Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    1. Business combination under different control
    
    (1) Business combination under different control in current period
    
    Equity Revenue from Neftropmrofit
    
    Name of acquisition acEqquuisitiytio Equity acnquraistiiotio acEqquuisitiytio Acquisitio Basis of daactqeutiosiytieoanr daactqeutiosiytieoanr
    
    company n date acquisition cost (%) n method n date acquisition date end end
    
    RMB RMB
    
    Australia Kilikanoon Estate 18 January AUD 18 January Fiannisdhapcaqyumireent
    
    2018 20,860,825 80% Purchase 2018 equity 57,648,905 217,869
    
    Other detail information:
    
    Pshuarrseuhaonltdetors tohfethAegCroeemmpeannty oanndtAheusdtrealliivaeKryiliokfantoraonnsfEesrtraetde oenqu5itDieesceemntbeererd20i1n7to, thbeetCwoemenpatnhye
    
    2ac0q,8u6ir0e,d8258(0%tranesqluatietyd ainstRerMesBts 1o0f7,A19u4s,t4ra2l0ia). TKhileikCanoomopnanEystcaotme paltetethdethceoneqsiudietyrattrioannsfoefr oAnU1D8
    
    KJainliukaarnyoo2n01E8staaten.d obtained the control of financial and operating policies over Australia
    
    (2) Consideration and Goodwill
    
    Consideration
    
    Australia KilikRanMoBon Estate
    
    TCoatsahl consideration 110077,,119944,,442200
    
    Less: acquired provisional value of net assets __7_0__,1_3_1_,2_9_0_
    
    Goodwill ___37_,_0_6_3_,_1_30_
    
    (3) Recognised assets and liabilities of mergee at acquisition date
    
    FaAiur svtaraluliea KilikanoBonooEkstvaatelueat acquRisMitiBon date at acquRisMitiBon dateACasssehtsand bank 1,359,765 1,359,765
    
    PArcecpoauynmtsenretceivable 10,326367,,127814 10,323667,,128741
    
    OIntvheenrtroercieesivables 69,161827,,371220 57,914876,,731202
    
    IFnixtaendgaibslseetasssets ___41_6_9,_,40_21_97_,,98_98_9_6 ___3_78_,,_64_69_61_,,76__204_9
    
    Total assets __1__4_7,_2_1_1_,_1_3_7 __1__16__,2_5_5_,5_8_5_
    
    VII. CHANGE IN CONSOLIDATION SCOPE - conYtainntauieCdhangyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    1. Business combination under different control - continued
    
    (3) Recognised assets and liabilities of acquiree at acquisition date- continued
    
    FAaiursvtraaluliea KilikanooBnooEkstvataelueat acquRisMitiBon date at acquRisMitiBon dateSLhiaobritl-itteirems borrowings 1,282,550 1,282,550
    
    AEmccpoluonytesepbaeynaebfliets payable 6,817968,,984876 6,187986,,894867
    
    TLoaxnegs-tpearmyabbloerrowings 431,,749879,,101993 431,,478997,,011993
    
    Deferred tax liabilities ____5__,9_0_2_,_4_2_9 _________-___
    
    Total liabilities ____59_,_5_4_7_,_0_24_ ___5__3_,6_4_4_,5_9_5_
    
    LNeestsa:ssNetosn-controlling interests ___1_87_7_,,65_63_42_,,1_81_2_33 ____612_2,_,56_12_20_,,91_99_8_0
    
    Acquired net assets ____70_,_1_3_1_,2_9_0_ ____5_0,_0_8_8_,_7_92_
    
    VIII. INTERESTS IN OTHER ENTITIES
    
    1. Structure of the Group
    
    Equbiytythinetceoremstpoanwyned Acquisition method
    
    Name Address Place of registration Nature Direct Indirect
    
    Xinjiang Tianzhu (a) Shihezi, Xinjiang, China Shihezi, Xinjiang, China Manufacturing 60% - Subsidcioarmybaicnqautiiorneduinndberusiness
    
    Fransac Sales Cognac, France Cognac, France Trading - 100% Subsindoianr-ycoamcqmuiornedcoinntbroulsiness
    
    ncoonm-cboimnamtioonn cuonndterrol
    
    Mirefleurs Bordeaux, France Bordeaux, France Trading - 100% Subsidcioarmybaicnqautiiorneduinndberusiness
    
    Atrio Navarra, Spain Navarra, Spain Sales 75% - Subsindoianr-ycoamcqmuiornedcoinntbroulsiness
    
    ncoonm-cboimnamtioonn cuonndterrol
    
    IWCC Santiago, Chile Santiago, Chile Sales 85% - Subsidiaries acquired byestablishment
    
    Australia Kilikanoon Estate Adelaide Australia Adelaide Australia Sales 80% - Subsidcioarmybaicnqautiiorneduinndberusiness
    
    Beijing Changyu Sales and distribution Co., Ltd ("Beijing Sales") Beijing, China Beijing, China Sales 100% - Sunbosni-dcioarmiems oancqcuoinretrdolby
    
    Yantai Kylin Packaging Co., Ltd. Yantai, Shandong, China Yantai, Shandong, China Manufacturing 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    (Y"aKnytaliinCPhaacnkgayguin-Cg"a)stel Wine Chateau Co., Ltd ("Changyu Chateau") (b) Yantai, Shandong, China Yantai, Shandong, China Manufacturing 70% - Subsiedsitaarbielsisahcmqeunirted by
    
    Changyu (Jingyang) Wine Co., Ltd. Xianyang, Shanxi, China Xianyang, Shanxi, China Manufacturing 90% 10% Subsiedsitaarbielsisahcmqeunirted by
    
    (Y"aJinntgaiyaCnhganWgyinue"P)ioneer Wine Sales Co., Ltd. ("Sales Company") Yantai, Shandong, China Yantai, Shandong, China Sales 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Langfang Development Zone Castel-Changyu Wine Co., Ltd ("Langfang Lanfang, Hebei, China Lanfang, Hebei, China Manufacturing 39% 10% Subsiedsitaarbielsisahcmqeunirted by
    
    Castel") (c) establishmentVIII. INTERESTS IN OTHER ENTITIES - continueYdantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report1. Structure of the Group - continued
    
    Equbiytythinetceoremstpoanwyned Acquisition method
    
    Name Address Place of registration Nature Direct Indirect
    
    Changyu (Jingyang) Wine Sales Co., Ltd. ("Jingyang Sales") Xianyang, Shanxi, China Xianyang, Shanxi, China Sales 10% 90% Subsiedsitaarbielsisahcmqeunirted by
    
    Langfang Changyu Pioneer Wine Sales Co., Ltd ("Langfang Sales") Lanfang, Hebei, China Lanfang, Hebei, China Sales 10% 90% Subsiedsitaarbielsisahcmqeunirted by
    
    Shanghai Changyu Sales and distribution Co., Ltd. ("Shanghai Sales") Shanghai, China Shanghai, China Sales 30% 70% Subsiedsitaarbielsisahcmqeunirted by
    
    DBeeivjeinlogpCmheanntg")yu AFIP Agriculture development Co., Ltd ("Agriculture Miyun, Beijing, China Miyun, Beijing, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Beijing Chateau (d) Beijing, China Beijing, China Manufgacturin 90% - Subsiedsitaarbielsisahcmqeunirted by
    
    SYaalnetsa"i)("Beijing Chateau") Changyu Wine Sales Co., Ltd. ("Wines Yantai, Shandong, China Yantai, Shandong, China Sales 90% 10% Subsiedsitaarbielsisahcmqeunirted by
    
    Yantai Changyu Pioneer International Co., Ltd. ("Pioneer International") Yantai, Shandong, China Yantai, Shandong, China Sales 70% 30% Subsiedsitaarbielsisahcmqeunirted by
    
    Hangzhou Changyu Wine Sales Co., Ltd. ("Hangzhou Changyu") Hangzhou, Zhejiang, China Hangzhou, Zhejiang, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Ningxia Growing Yinchuang, Ningxia, China Yinchuang, Ningxia, China Planting 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Huanren Changyu National Wines Sales Co., Ltd. ("National Wines") Benxi, Liaoning, China Benxi, Liaoning, China Sales 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Liaoning Changyu Ice Wine Chateau Co., Ltd. ("Ice Chateau") (e) Benxi, Liaoning, China Benxi, Liaoning, China Manufgacturin 51% - Subsiedsitaarbielsisahcmqeunirted by
    
    ZYoannetaTi rDaedvineglo"p)ment Zone Changyu Trading Co., Ltd ("Development Yantai, Shandong, China Yantai, Shandong, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Shenzhen Changyu Wine Marketing Ltd. ("Shenzhen Marketing") Shenzhen, Guangdong, China Shenzhen, Guangdong, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Yantai Changyu Fushan Trading Company("Fushan Trading") Yantai, Shandong, China Yantai, Shandong, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Beijing AFIP Meeting Center ("Meeting Center") Miyun, Beijing, China Miyun, Beijing, China Service - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Beijing AFIP Tourism and Culture ("AFIP Tourism") Miyun, Beijing, China Miyun, Beijing, China Tourism - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Ningxia Wine Yinchuan, Ningxia, China Yinchuan, Ningxia, China Manufgacturin 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Y("aDnitnagi CLhuaonTgeyuCDhaitnegaLuu")oTe Chateau. Yantai, Shandong China Yantai, Shandong China ReStaailleasnd 65% 35% Subsiedsitaarbielsisahcmqeunirted by
    
    Qing Tong Xia Changyu Wine Marketing Ltd("Qing Tong Xia Sales") Qing Tong Xia, Ningxia, China Qing Tong Xia, Ningxia, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Shihezi Chateau Shihezi, Xinjiang, China Shihezi, Xinjiang, China Manufgacturin 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Ningxia Chateau Yinchuan, Ningxia, China Yinchuan, Ningxia, China Manufgacturin 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    (S"hCanhxainCg'haannCgyhuateRaiun"a)Castle Chateau Co., Ltd. Xianyang, Shanxi, China Xianyang, Shanxi, China Manufgacturin 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    R&D Centre (f) Yantai, Shandong China Yantai, Shandong China Manufgacturin 72% - Subsiedsitaarbielsisahcmqeunirted by
    
    C("hHaunagnyuRe(HnuWaninRee"n)) Wine Co., Ltd Benxi LiaoNing China Benxi LiaoNing China proWduincteion 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Xinjiang Changyu Sales Co., Ltd Shihezi Xinjiang China Shihezi Xinjiang China ProSjaelcetsing - 100% Subsidiaries acquired by
    
    (N"iXnignxjiiaanCghSaanlgeysu")Trading Co., Ltd Yinchuan Ningxia China Yinchuan Ningxia China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    (S"hNainnxgixCiahaTnrgadyuinRg"i)na Wine Sales Co., Ltd ("Shanxi Sales") Xianyang Shanxi China Xianyang Shanxi China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Penglai Changyu Wine Sales Co., Ltd Penglai Shandong China Penglai Shandong China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    (L"aPieznhgoluaiCShaalnegs"y)u Wine Sales Co., Ltd Laizhou Shandong China Laizhou Shandong China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    F("rLanaiczshCouhaSmalpess") Cognac, France Cognac, France Investment 100% - Subsiedsitaarbielsisahcmqeunirted by
    
    Lanzhou Changyu Wine Sales Co., Ltd ("Lanzhou Sales") Lanzhou Gansu, China Lanzhou Gansu, China andStarlaedsing - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Beijing Retailing Co. Ltd("Beijing Retailing") Beijing, China Beijing, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Tianjin Changyu Pioneer Sales Co., Ltd ("Tianjin Pioneer") Tianjin, China Tianjin, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Fuzhou Changyu Pioneer Sales Co., Ltd ("Fuzhou Pioneer") Fuzhou Fujian, China Fuzhou Fujian, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Nanjing Changyu Pioneer Sales Co., Ltd ("Nanjing Pioneer") Nanjing, Jiangsu, China Nanjing, Jiangsu, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Xianyang Changyu Pioneer Sales Co., Ltd ("Xianyang Pioneer") Xianyang, Shanxi, China Xianyang, Shanxi, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Shenyang Changyu Pioneer Sales Co., Ltd ("Shenyang Pioneer") Shenyang, Liaoning, China Shenyang, Liaoning, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Jinan Changyu Pioneer Sales Co., Ltd ("Jinan Pioneer") Jinan, Shandong, China Jinan, Shandong, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Shanghai Changyu Pioneer Sales Co., Ltd ("Shanghai Pioneer") Shanghai, China Shanghai, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Fuzhou Changyu Pioneer Sales Co., Ltd ("Fuzhou Pioneer") Fuzhou, Jiangxi, China Fuzhou, Jiangxi, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Shijiazhuang Changyu Pioneer Sales Co., Ltd ("Shijiazhuang Pioneer") Shijiazhuang, Hebei, China Shijiazhuang, Hebei, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Hangzhou Yuzefeng Sales Co., Ltd ("Hangzhou Yuzefeng") Hangzhou, Zhejiang, China Hangzhou, Zhejiang, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Jilin Changyu Pioneer Sales Co., Ltd ("Jilin Pioneer") Changchun, Jilin, China Changchun, Jilin, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    establishment
    
    VIII. INTERESTS IN OTHER ENTITIES - continueYdantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    1. Structure of the Group - continued
    
    Equbiytythinetceoremstpoanwyned Acquisition method
    
    Name Address Place of registration Nature Direct Indirect
    
    Beijing Changyu Pioneer Sales Co., Ltd ("Beijing Pioneer") Beijing, China Beijing, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Harbin Changyu Pioneer Sales Co., Ltd ("Harbin Pioneer") Harbin, Heilongjiang, China Harbin, Heilongjiang, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Hunan Changyu Pioneer Sales Co., Ltd ("Hunan Pioneer") Changsha, Hunan, China Changsha, Hunan, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Yinchuan Changyu Pioneer Sales Co., Ltd ("Yinchuan Pioneer") Yinchuan, Ningxia, China Yinchuan, Ningxia, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Kunming Changyu Pioneer Sales Co., Ltd ("Kunming Pioneer") Kunming, Yunnan, China Kunming, Yunnan, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Chongqing Changyu Pioneer Sales Co., Ltd ("Chongqing Pioneer") Chongqing, China Chongqing, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Wuhan Changyu Pioneer Sales Co., Ltd ("Wuhan Pioneer") Wuhan, Hubei, China Wuhan, Hubei, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Hohhot Changyu Pioneer Sales Co., Ltd ("Hohhot Pioneer") Hohhot Inner Mongolia, China Hohhot Inner Mongolia, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Chengdu Changyu Pioneer Sales Co., Ltd ("Chengdu Pioneer") Chengdu, Sichuan, China Chengdu, Sichuan, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Nanning Changyu Pioneer Sales Co., Ltd ("Nanning Pioneer") Nanning, Guangxi, China Nanning, Guangxi, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Lanzhou Changyu Pioneer Sales Co., Ltd ("Lanzhou Pioneer") Lanzhou Gansu, China Lanzhou Gansu, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Yantai Fulangduo Yantai Shandong, China Yantai Shandong, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Hefei Changyu Pioneer Sales Co., Ltd ("Hefei Pioneer") Hefei, Anhui, China Hefei, Anhui, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Urumchi Changyu Pioneer Sales Co., Ltd ("Urumchi Pioneer") Urumchi Xinjiang, China Urumchi Xinjiang, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Guangzhou Changyu Pioneer Sales Co., Ltd ("Guangzhou Pioneer") Guangzhou Guangdong, China Guangzhou Guangdong, China Sales - 100% Subsiedsitaarbielsisahcmqeunirted by
    
    Grape Wine Marketing Ltd. Yantai Shandong China Yantai Shandong China Sales 100% - Subsidiaries acquired byestablishment
    
    Explanation in difference between holding interests and voting rights in subsidiaries:
    
    (a) Xinitnerjieasnt.gTThiaronuzhguh wagarseaecmqeunirteadrrbayngtheemCenotm, pthaneyC, aocmcpoaunnytinhgasfotrh6e0f%ullofpXowinejriatnog cToinantrzohluX'sienqjiuaintyg
    
    bTeiantzehrmu'sinsattreadtegoinc o6perAatuignugs,tin2v0e1st7in. gUapnodnfinthaencienxgpipryolicoifes.thTeheagargereememenetntaarrrraannggeemmeenntt, wthilel
    
    noobnli-gcaotinotnroslloifngtheinsthearereshtsolodfersXainsjsiatinpgulaTteiadniznhuthewAilrltincloersmoafllAysseoncjioayti/oconm. mit all the rights and
    
    (b) Cinhvaenstgoyru, Cachcaoteuanutinigs afoSrin7o0-f%oreoigfn CjohianntgvyeuntuCrheateesatua'bslisehqeuditybyinthteereCsto.mTphanroyugahnd aagrefoermeiegnnt
    
    ainrrvaensgtienmgenatn,dthfeinCaonmcinpganypohlaicsieths.e fulTl hpeowaegrretoemcoennttroalrrCanhganemgyeuntChwaitlelaub'es stterramteigniacteodpeorantin3g1,
    
    December 2022.
    
    (c) iLnavnegsftaonr,g aCcchoautenatuingis faorSi4n9o%-foroefignLajnoginfatnvgenCtuhraeteeasut'asbleiqshueitdy biyntethreestCobmy ptahney Canodmpaanfyoreaingdn
    
    LsuabnsgifdainargiesC. hTatheraouu'sghstargarteegemicenotpearrartainngge,miennvte,sttihneg Caonmd pafinnyanhcainsg thpeolficuilels.poTwheer taogreceomnteronlt
    
    awrirlalnbgeemenetnittlewdatso/taebrmidiendatbeyd tohne 3ri1ghDtse/coebmligbaetrio2n0s17o.f MtheinsohraitryehsohladreerhsoaldseargsroeefdLianngthfaenAgrCtichlaetseaouf
    
    Association upon the due date of the agreement arrangement.
    
    (d) QBeinijginlagngC, haantdeatuheisCoamjpoainnyt vinecnrteuarseesesthtaeblciasphietdal bcyonttrhiebuCtioonmpRaMnyB, 5Y0a2n,9ta1i0,D00e'0aninatnhdis Bpeerijiiondg,
    
    YBeainjtianigDCeh'aanteaaundhaBseicjionmgpQelilnegdlatnhge tbougseitnheesrs irnecgriesatsraetitohne ocnapi2t2al Dcoecnetrmibbuetrio2n0R17M. BA2f9te,8r4c0a,p0i0t0al.
    
    TcohnetriCboumtiopnaniyncgreeatssedth,ethceoCntoromlpoanvyerisopaecrcaotuionnti,nginfvoerst9m0e%nt,ofanBdeijfiinnganCcihaaltedaeuc'sisieoqnuitoyf iBnteeirjeinstg.
    
    Chateau through agreement arrangement, which will terminate on 2 September 2019.
    
    VIII. INTERESTS IN OTHER ENTITIES - continueYdantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    1. Structure of the Group - continued
    
    (e) aIccecoCuhnatitnegaufiosr a5S1i%no-ofof reIicgen Cjohiantteavue'nstuerqeueitsytabilnitsehreedst.byThthreouCgohmapgarneyemanendtaafrorareniggenmiennvte,sttohre,
    
    Cpoolmicpieasn.yThheasagthreeefmulelnptoawrrearngtoemcoennttrwolilIlcbeeCtehramteianua'tsedstorante3g1icDoepceermatbienrg2, 0in2v1e.sting and financing
    
    (f) RR&&DD CCeennttrree'siseqaujiotyinitntveernestut raet e3s1taDbleicshemedbebry2t0h1e8C. TomhepaCnoymapnadnyChAaDs Fc,omacpcloeutentcionngtrfoolro7v2e%r thoef
    
    aorprearnagtieomne, ntinavsesdtemscernitbeadnidn NfiontaencViaI-l25p.oTlihcieesconotfracthtearrRa&ngDemCenetntwreill seuxbpjiercet otno22thMe acyon2t0r2a6ct.
    
    cAaspiattal3.1 December 2018, the remaining investment of IFAD accounted for 28% of the registered
    
    2. Non-wholly owned subsidiaries
    
    Minority Protofint oann-dcloonstsroblelilnogngs Distributions to Assimilate no3n1-/c1o2n/t2ro01ll8ing
    
    Name interest shareholder ratio interest shareholders non-controlling interest interest
    
    XAtirnijoiang Tianzhu 2450%% (2,786404,8,10940) (744,-149) -- 3510,,762126,,693481
    
    LCahnagnfgaynugCChaastteealu 5310%% (1,774,-541) -- -- 1202,,936257,,098116
    
    BIceeijCinhgatCeahuateau 4109%% -- -- -- 3653,,131393,,086628
    
    IAWusCtrCalia Kilikanoon Estate 2150%% ___2_(3,_611_09,_1,84_84_5) ___(2_,6_5_5,_-62_7_) ___1_7,_53_2_-,8_2_3 ___51_73,,_0272_92_,,68_72_79
    
    __(_1_,3_8_1,_41_4_) __(_3_,3_9_9,_77_6_) ___1_7,_53_2_,8_2_3 __2_84_,_38_8_,0_1_2
    
    VIII. INTERESTS IN OTHER ENTITIES - continued Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    3. Key financial information of important non-wholly owned subsidiaries
    
    31/12/2018 31/12/2017
    
    Name Causrsreentst Nona-scsuertrsent aTsosteatls liCaburilrietniets Nolina-bciulirtrieenst liaTboiltiatiles Causrsreentst Nona-scsuertrsent Total assets liCaburilrietniets Nolina-bciulirtrieenst liTaboitlaitlies
    
    XChinajniagnyguTCihaantzehauu 14217,,239980,,042935 16164,,468964,,719658 25953,,989727,,129910 171,869,662- 5,336,114- 1715,,836396,,616124 14300,,023684,,042411 11751,,433253,,998450 215015,,548748,,030816 175,806019,,068010 5,336,1-14 1756,,016415,,610914
    
    LBaenijginfagnCghCaatesateul 21197,,967539,,558121 41661,,010115,,608829 68313,,068681,,617913 623,,539588,,534252 -- 623,,539588,,534252 21242,,077298,,257346 48117,,696783,,075109 64905,,770427,,235254 736,,916333,,094039 -- 736,,916333,,094039
    
    AIcteriCohateau 46445,,412914,,153901 2939,,098200,,686980 56639,,510115,,749881 31841,,967549,,435185 54,150200,,090307 43165,,108704,,245528 39388,,863557,,935598 11265,,249894,,530549 56145,,114315,,741673 21909,,807310,,609052 89,130306,,030308 31808,,937616,,639450
    
    IAWusCtrCalia Kilikanoon Estate 21847,,768344,,479007 36030,,795699,,836462 151551,,379543,,857323 11438,,338579,,934228 514,,899736,,117611 15635,,323851,,418193 175,66N9,/2A56 305,66N4,/7A06 481,33N3,/9A62 122,02N3,/7A64 N/5A,206,406 127,23N0,/1A70
    
    2018 2017
    
    Name Revenue Net profit (loss) Total cionmcopmreehensive Opercaatsinhgflaocwtisvities Revenue Net profit (loss) Total cionmcopmreehensive Opercaatsinhgflaocwtisvities
    
    XChinajniagnyguTCihaantzehauu 121,23158,,287083 (63,9,70120,0,11204) (63,9,70120,0,11204) 16,09463,,414172 16186,,956545,,253808 15,593815,,591130 15,953815,,591130 1392,,622294,,280120
    
    LBaenijginfagnCghCaatesateul 1595,,306398,,728831 (136,4,57595,4,89426) (136,4,57595,4,89426) 19,662773,,943232 13495,,116053,,522070 (117,6,41765,6,63487) (117,6,41765,6,63487) (419,5,95644,3,88801)
    
    IActeriCohateau 35277,,525900,,454950 3,881710,,496954 3,387760,,796914 6,122899,,972832 24891,,604037,,319667 21,,020401,,668929 71,,720411,,461969 (3(12,,174488,,352365))
    
    AIWusCtrCalia Kilikanoon Estate 25627,,160484,,956035 15,293147,,386479 (117,5,45605,7,92000) (13,5,52824,1,65418) 157,95N3/,A467 28,79N1/,A684 31,45N8/,A952 16,48N2/,A765
    
    * This is amount incurred in the period between acquisition date and 31 December 2018.IX. FINANCIAL INSTRUMENT AND RISK MANAGYEaMntaEi CNhaTngyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    oTthheerGrroeucpei'svamblaejso,r faivnaainlacbialle-ifnosrt-rsuamleenftsinainnccliuadl e acsassehts,andothbearnk,nonno-tceusrraenndt aacscsoeutns,t rsehcoerivt-atebrlme,
    
    bDoertraoilwsinogfst,heascecofiunnatnscipaalyianbslteru, moethnetsr apraeydaibslcelso,seidnteinresNtotpeayVaIb.leTsh, earnidsksloansgs-otceiramtedbowrritohwtihnegsse.
    
    Mfinaannacgiaelmeinnsttmruamneangtess aanndd mthoenitpoorslicthieesseoenxphoosuwrestotomenitsiugraetethtehreisseksraisrkesmaorneitosreetd oaut ta cbeerltoawin.
    
    level.
    
    Tanhde sGhraoreuhpoalddeorpst'sesqeunitsyitiwviotyuldanhaalyvseisbeteecnhanfifqeucetetdobaynarleyasseonhaobwlythpeospsriobfliet cahnadngloesssifnorthteherepleevriaondt
    
    rinistkerdveaprieanbdleesn.ceAsamitoinsgunrilsikkelvyartihaabtlersiskwivllarhiaabvleesswiginllificchaanntgeeffienctanonisotlhaetedammoaunnnteru,ltaimndattehlye
    
    tinhfelucehnacnegde binyetahcehcrhiasnkgveasriianbalesiisngolnearisstkanvda-raialobnlee, bthaesisfo. llowing are based on the assumption that
    
    TmhineimGrisoeupth'seriasdkvmerasenaigmepmaecntst oobfjericstkivseosnartehetoGarcohuipev'seoapeprraotpioenr bpaelrafnocrembaentcwe,eeanndrismkasxainmdisyeietlhde,
    
    tbheeneGfirtosuopf'sthbeassihcarreishkolmdearnsaagnedmeonthtesrtrsattaekgeyhoisldetors.idBenastiefdy oanndthaensaelyrissek tmheanGargoeumpe'sntexopbojescutrievetso,
    
    avnadriomusonriistokrss, eresgtaubllairslhy aanndapepfrfoepcrtiivateelymtahxeismeuemxptoosluerreasncteo toenrsiusrke, itmheplreimskesntarreiskmomnaintoargeedmaetnta,
    
    certain level.
    
    1. Risk management objectives and policies
    
    1.1 Market risk
    
    1.1.1 Currency risk
    
    GCurorruepn'scyexripsoksuisrethteo rtihsek cthuarrtelnocsysersiswkiilsl opcricmurarbielycaaussseocoifatcehdanwgieths iEnUfRoreaingdnUexScDh.anSgeeverraatleso.fTthhee
    
    dGorloluarp,'s bsourbrsoiwdiianrgiess dheanvoempiunractheadseisnanUdSsDa,leswdheilneomthineatGedroiunpE'sUoRt,heCrhiplerainncpipeaslo aacntdivAitiuesstraalriae
    
    dsteanteodmiinnatthede taanbdlesebtetlleodwinareRMfoBre.iAgsn actu3rr1enDceycedmepboesrit2s0o1r8,execxecsesptofthbaot rtrhoewainssgest,s tahnedaslisaebtsiliatineds
    
    liabilities of each entity of the Group are settled in their respective functional currencies.
    
    31/R12M/2B018 31/R12M/2B017
    
    BBaannkk aanndd ccaasshh ((UEUSDR)) 51,128939,,971503 341,,814930,,495689
    
    Short-term borrowings (USD) ____7_5,_4_9_5_,_20__0 ___5_8__,8_0_7_,_8_0_0
    
    iCmuprraecntcoynritshke aGrirsoinugp'sfropmerftohremaasnsceets. Tanhde lGiarboiuliptiecslodseenlyomminoantietodrsinthfoereeifgfenctcsurorfencchieasngmesayinhathvee
    
    faonryeimgneaesxucrhesantogeheradtgees counrrtehnecGyrroisukp'esxcpuorsruenrecsy. risk exposures. The Group currently does not take
    
    IX. FINANCIAL INSTRUMENT AND RISK MANAGYEaMntaEi CNhaTng-yucoPinotnieneruWedine Co. Ltd. 2018 Annual Report
    
    1. Risk management objectives and policies - continued
    
    1.1 Market risk- continued
    
    1.1.1 Currency risk - continued
    
    Sensitivity analysis on currency risk
    
    Wexchhearengaellraottehemr avyarhiaabvleesthaerefohlleolwdincgonpsrtaen-tta,xtheeffercetasoonnatbhley pproosfsitiboler lcohsasngfoers tihne tpheeriofodreaignnd
    
    shareholders' equity:
    
    Domestic entities:
    
    Current yearEffect on Prior year Effect on
    
    Change in exchange rate Effect on profit shareeqhuoitlyders' Effect on profit shareeqhuoitlyders'
    
    RMB RMB RMB RMB
    
    EEUURR 55%%dineccrreeaassee aaggaaiinnsstt RRMMBB (5500) (5500) (5500) (5500)
    
    UUSSDD 55%% iinnccrreeaassee aaggaaiinnsstt RRMMBB __(2_2,_4,46_69_9,4_,41_16_6) _(2_2,_4,46_69_9,4_,41_16_6) _(1_1,_4,45_56_6,5_,52_25_5) _(1_1,_4,45_56_6,5_,52_25_5)
    
    Overseas entities:
    
    Current yearEffect on Prior year Effect on
    
    Change in exchange rate Effect on profit shareeqhuoitlyders' Effect on profit shareeqhuoitlyders'
    
    RMB RMB RMB RMB
    
    UUSSDD 55%%dineccrreeaassee aaggaaiinnsstt EEUURR (990000) (990000) (5522,6,69955) (5522,6,69955)
    
    UUSSDD 1155%%dineccrreeaassee aaggaaiinnsstt CChhiillee PPeessoo (1111,0,04422,6,64411) (1111,0,04422,6,64411) (55,2,27755,6,65511) (55,2,27755,6,65511)
    
    EEUURR 1100%%dineccrreeaassee aaggaaiinnsstt CChhiillee PPeessoo ____(1_19_9,8_,87_76_6) ___(1_19_9,8_,87_76_6) ___(5_58_8,3_,35_50_0) ___(5_58_8,3_,35_50_0)
    
    Note: eAxschaatng3e1 raDteecfeomr bUeSrD2t0o18E,UtRh,e1G0%rouinp'sexmchaannaggeemraetentfoarnEtiUciRpattoedChailecahnanPgeesooafn5d%15%in
    
    in exchange rate for USD to Chilean Peso.
    
    IX. FINANCIAL INSTRUMENT AND RISK MANAGYEaMntaEi CNhaTng-yucoPinotnieneruWedine Co. Ltd. 2018 Annual Report
    
    1. Risk management objectives and policies - continued
    
    1.1 Market risk- continued
    
    1.1.2 Interest rate risk - risk of changes in cash flows
    
    bTahnekGbrooruropw's icnagssh(fRloewferinttoerNeostteraVteI-r1is,kNooftefiVnaIn-1c6iaalnindsNtruomteeVntIs-2r4elafotersdpertaimilsa)r.ilIyt itsotvhaeriGabroleu-pr'aste
    
    rpaotleicryiskto. keep its borrowings at floating rate of interests so as to eliminate the fair value interest
    
    The sensitivity analysis on interest rate risk
    
    Tinhfleuseenncseittihveityinatenraelsytsiinscoonmientoerreesxtpreanteserioskf tihsebvaaseridabolne trhaetecfhiannagnecsiailninthsetrummareknetst .interest rate may
    
    dMoaensangoetmdeisnctloofsethseenGsriotiuvpitybealnieavlyessisinftoerreinstterraetsetrriastkeorniskb.ank deposit is not significant, therefore
    
    Wmahyerheavalel tohtehefrolvloarwiaibnlgespraer-etahxeledffceocnt sotnantth,ethperorfeiatsoornlaobslsyfpoorstshieblpeecrihoadnganesdisnhtahreehionltdereersst' eraqtueity
    
    Current yeaEr ffect on Prior year Effect on
    
    Change in interest rate Effect on profit shareeqhuoitlyders' Effect on profit shareeqhuoitlyders'
    
    BBaannkk bboorrrroowwiinnggss 5500%%dineccrreeaassee _(2_2,_0,01_16_6,6_,66_67_7) (2_,_02_1,06_1,_666_,67_6)_7 _(2_2,_0,04_46_6,6_,64_46_6) _(2_2,_0,04_46_6,6_,64_46_6)
    
    Note: Ainsthaet 1b3anDke'scvemarbiaebrle20in1t8e,rethset rGatreo.up's management anticipated a change of 50 basis points
    
    1.2 Credit risk
    
    fAinsanatcia3l1loDssectoemthbeerGr2o0u1p8,dutheetoGfaroiluupre'stomdaixsicmhaurmgeeaxnpoobsluirgeattiooncbreydtihtercisokunwtehripcahrtiwesil.l cause a
    
    Icnusotormdeerrstohmavineimgioseodthecrecdreitditrercisokrd, st.heTGherouGprohuaps ahdaospteddeleagaptoeldicya toteeanmsurreestphoantsiablllesafloesr
    
    dfoeltleorwm-iunpatiaocntioonf icsretadkitenlimtoitrse,ccorveedritoavpeprdrouveadlsebatns.dFootrhetrranmsoanctiitoonrisngthaptroacreednuoret sdetonoemnisnuarteedthiant
    
    wthiethfouuntctthioensapleccuifrircenacpyproovf atlhoefrtehleevDanetpaorptmereantitnogf uCnrietd, itthCeoGntrrooulpindtohees Gnrootuopf.fIenr acdredditiitonte,rtmhes
    
    Genrsouurpe rtehvaitewadsetqhueatreeciomvpearairbmleenatmloousnset sofareeacmhaidnedifvoidr uiarrletcroadveerdabeblet aatmeoaucnhtsb.alIannctheisshreeegtadrda,tethtoe
    
    management of the Group considers that the Group's credit risk is significantly reduced.
    
    IX. FINANCIAL INSTRUMENT AND RISK MANAGYEaMntaEi CNhaTng-yucoPinotnieneruWedine Co. Ltd. 2018 Annual Report
    
    1. Risk management objectives and policies - continued
    
    1.2 Credit risk - continued
    
    SreiqnucieremtheentGfororucpolltartaedreasl. Conolnycenwtirtahtiornescoogfncirzeeddit rainsdk acreremdiatwnaogrethdybythciurdstopmaertri/ecso,unthteerrpearitsy, nboy
    
    rgeecoegivraapbhleicsaalrreedguioenfraonmd btoypifnidvuesctruystsoemcteorrs. (A31s Date3c1emDbeecre2m0b1e7r: 22001.78%, 1).9T.8h%ereofisthneo Gcorloluatpertaraldoer
    
    other credit enhancement on the balance of the trade receivables of the Group.
    
    1.3 Liquidity risk
    
    cInasthheeqmuaivnaalgeenmtsendteeomf ethdealdiqeuqiudaittey briyskt,htehemGanroaguepmmenotnittoorsfinaanndcemathinetaGinrsouapl'sevoepleoraf tcioanshs aanndd
    
    mbaintikgabtoerrtohwe inefgfsecatnsdoefnsfulurcetsucaotimonpsliainncceawshithflloowans.cTovheenmanatns.agement monitors the utilisation of
    
    GThroeufpowllohwicihngis ibsasthede omnautunrditiyscoaunnaltyedsisrefmoarinfiinnagnccoianltraascsteutasl oanbdligfaitniaonncsi:al liabilities held by the
    
    Non-derivative financial liabilities
    
    Less thaRnMonBe month 1-3RmMoBnths 3-12RMmoBnths 1-5RMyeBars More thRanMfBive years RTMotaBl
    
    AShcocrotu-tnetrsmpabyoarbrolewings 163,28,7393,85,76898 3275,77,5699,11,54663 22614,19,3843,11,41731 -- -- 771031,,587621,,828912
    
    OInttheerersptapyaaybalbesle 155,84721,22,58526 179,896,3-18 256,314,0-91 -- -- 592,071522,,682646
    
    LLoonngg--tteerrmm bpaoyrraobwleisngs ____8_,3_82_-,9_9_6 __23_21_,,97_7602_,,91_37_04 ___81_45_,,18_2528_,,84_33_35 __11_46_38_,,55_7545_,,04_33_73 __9_0_,3_56_-,3_0_0 __22_79_40_,,78_5330_,,10_03_80
    
    __33_1_,1_5_6,_35_3_ _62_0_,0_8_0,_04_1_ _1,_22_0_,0_6_0,_63_7_ __31_2_,1_2_9,_47_0_ _9_0_,3_5_6,_30_0_ _2_,5_7_3_,7_82_,8_0_1
    
    1.4 Fair value disclosure - Financial assets and liabilities not measured using fair value
    
    Carrying amount Level 1 Level 2 Fair valuLeevel 3 Total
    
    of fair value of fair value of fair value
    
    Laotnagm-toerrmtizepdaycaobsltes measured _2_59_,_00_0_,0_0_0 _____-__ _2_23_,_26_3_,8_8_6 ______-__ _2_23_,_26_3_,8_8_6
    
    Aafsoreamt e3n1tioDneedcelmonbge-rter2m01p8a, yTabhlees,mtahneacgaermryeinntg oamf othuentsGorfouopthebrefliienvaensciatlhaats,seatspaarntdfrfoinmanctihael
    
    lthiaebsieliatisessetms aenasdulrieadbialittieasm. ortised cost in the financial statements are close to the fair values of
    
    X. RELATED PARTY AND RELATED PARTY TRAYNanStaAi CChTanIgOyuNPiSoneer Wine Co. Ltd. 2018 Annual Report
    
    1. Parent company
    
    Npaarmenet ocfompany Relation eTntyeprperoisfe rePgliasctreatoiof n repreLseegnatal tive of Sbcuosipneess Recgaipsittearled Poefrcsehnatraegse ofPveortcinengtariggehts IncCoropdoerate
    
    RMB % %
    
    Changyu Group Parent Limited Yantai Zhou ManufactuCompany Company Company Hongjiang ring 50,000,000 50.4 50.4 265645824
    
    Dcaupriitnagl, sthheareyseahrolednindgedor3v1otDinegcepmowbeerr.2018, there is no change in parent company's registered
    
    2. Subsidiaries: Please refer to Note VIII.
    
    3. Other related parties
    
    Name of related parities Nature of related parties Incorporate code
    
    YaCntoa.i, CLthda.n("gWyuinWe CinueltCuureltuMreusMeuumse"u)m Cboymthpeansyamcoenptarorellnetd 913706007582586548
    
    YaWntainieCChiatnygCyuo.I,nLtetdrn.(a"tWioinnadloWwinodf othweoWf itnhee City) Cboymthpeansyamcoenptarorellnetd 91370600672208146X
    
    Yan(t"aSihSehneMnMa aPaPcakciknign"g) Co., Ltd. Cboymthpeansyamcoenptarorellnetd 91370600553393350J
    
    YaWntainieZChoon.,gLytadP.(h"ZarhmonacgeyuatiPchaal rTmoanciecutical") Cboymthpeansyamcoenptarorellnetd 91370600726203923M
    
    YaSnataleisCChoa.n,gLytud.C("uCltuurletuTreouSrailsems"P) roduction Cboymthpeansyamcoenptarorellnetd 91370602MA3N7A877P
    
    YaCntoa.i, CLthda.n("gyCuulCtuurletuDreevTeoluorpimsmenDt e"v) elopment Cboymthpeansyamcoenptraorellnetd 91370602MA3N59J300
    
    4. Significant related party transactions
    
    (1) Purchases from and sales to related parties
    
    Purchase from related parties The content of related 2018 2017
    
    party transactions RMB RMB
    
    SZhheonnMgyaaPPahcakrimngaceutical pprroodduucctt ppuurrcchhaassee 17135,,263980,,293890 1495,,827792,,038001
    
    WWiinndeoCwulotuf rteheMWusienuemCity pprroodduucctt ppuurrcchhaassee 167,,978134,,371412 62,,733566,,803520
    
    Culture Sales product purchase ______3_5_,8_5_7_ ___________
    
    _2_1_3_,_6_6_3_,1_2_9_ _1__64_,_2_4_4_,2_6__3
    
    All related party transactions are based on the negotiated price.
    
    I1n0.290%18) , purchases from related parties accounted for 11.2% of the Group's total purchase (2016:
    
    X. RELATED PARTY AND RELATED PARTY TRAYNanStaAi CChTanIgOyuNPiSon-eecroWnitnienCuoe.dLtd. 2018 Annual Report
    
    4. Significant related party transactions - continued
    
    (1) Purchases from and sales to related parties- continued
    
    Sales to related parties
    
    Thpearctoynttreanntsoafctrieolnasted R20M1B8 R20M1B7
    
    WWiinndeoCwulotuf rteheMWusienuemCity ggooooddss ssaalleess 1233,,852115,,537559 128,,223055,,522407
    
    ZChuoltnugreyaSPalheasrmaceutical ggooooddss ssaalleess 24,,591542,,268696 2,035-,003
    
    ShenMa Packing goods sales _____3_4_8_,2_4_7_ ___1_,_6_3_4_,8_8_3_
    
    __4_5_,_1_5_2_,1_3_6_ __2_4_,_1_1_0_,6_5_3_
    
    aAclcloruelnatteeddfpoarrlteystsrathnasnac1ti%onosfatrheebGasroedupo'sn ttohtealnseagloetsia(t2e0d1p7r:ilcees.sInth2an0118%, s).ales to related parties
    
    (2) Property leased from a related party
    
    The Group as Lessee
    
    2018 Assets leased Beginning date Ending date RentaRlMexBpense
    
    CChhaannggyyuu GGrroouupp CCoommppaannyy officeobfufiicldeinbguialdnidngfactory 11 JJaannuuaarryy 22001176 3311 DDeecceemmbbeerr 22002210 11,,533318,,836440
    
    Changyu Group Company office building and factory 1 January 2017 31 December 2021 __3,_99_4_,0_9_1
    
    _6_,_86_4_,2_9_5
    
    All related party transactions are based on the negotiated price.
    
    The Group as Lessor
    
    2018 Assets leased Beginning date Ending date RentRalMinBcome
    
    ZShheonnMgyaaPPahcakrimngaceutical ooffffiiccee bbuuiillddiinngg aanndd ffaaccttoorryy 1 1JaJnuulayry20210718 313D0eJcuenmeb2e0r222018 __1,_5471_88_,,91_88_22
    
    __1,_99_7_,1_6_4
    
    All related party transactions are based on the negotiated price.
    
    X. RELATED PARTY AND RELATED PARTY TRAYNanStaAi CChTanIgOyuNPiSon-eecroWnitnienCuoe.dLtd. 2018 Annual Report
    
    4. Significant related party transactions - continued
    
    (3) Other significant related party transactions
    
    Thpearctoynttreanntsoafctrieolnasted Note 2018 2017
    
    RMB RMB
    
    CChhaannggyyuu GGrroouupp CCoommppaannyy RPoayteanlttys ffeeee ((ba)) __73__,9_75_60_,,30_90_05_ __7_2_,8_35_80_,,6_01_00_2
    
    All related party transactions are based on the negotiated price.
    
    (a) Royalty fee
    
    CPuormsupaanntytomaaryoyuasletycaegrtraeienmternatdedmataerdks18oMf Cayha1n9g9y7u, sGtarrotiunpg fCroommp1a8nyS,epwtehmicbherha1v9e97b,etehne
    
    raengniustaelresdalewsitihs tphaeyaPbRleCtoTrCadheamngayrku OGfrfoicuep. CAonmapnannuya.l Trohyealltiycefnesee aits 2e%ffeocftivtheeuGntriolutph'es
    
    expiry of the registration of the trademarks.
    
    D10u0r%ing). 2018, royalty fee paid to related company accounted for 100% of the Group (2017:
    
    (b) Patents fee
    
    uTshaegeCofmeepapnayyraebnleewbedy ththeecoCnotrmacptanoyn 2to0 ACuhgaunsgty2u01G6rfoourp10Coymeaprsa.nyThereamnaniunaeldpaRteMnBts
    
    5G0r,o0u0p0.CFoomr tphaenyyeiasramenoduendte3d1toDRecMemBb5e0r,020001(82,0t1h7e:RpaMteBnt5s0u,0sa0g0e).fee payable to Changyu
    
    D10u0r%ing). 2018, patent fee paid to related company accounted for 100% of the Group (2017:
    
    (4) Remuneration of the management
    
    R20M1B8 R20M1B7
    
    Remuneration of the management ____13_,_1_0_2_,_00_5_ ____10_,_3_0_9_,4_0_9_
    
    X. RELATED PARTY AND RELATED PARTY TRAYNanStaAi CChTanIgOyuNPiSon-eecroWnitnienCuoe.dLtd. 2018 Annual Report
    
    5. Balance due from/to related parties
    
    (1) Balance due from related parties
    
    Accounts receivable Balance 31/12/20P1r8ovision Balance 31/12/201P7rovision
    
    RMB RMB RMB RMB
    
    SZhheonngMyaa PPhacakrminagc.eutical 2,76187,3,91137 -- 18,,134342,,314508 --
    
    WWiinndeoCwulotuf rteheMWusienuemCity _1_,_9_11_,_1-_5_7_ _____--___ __3_,_139_46_,,_02_98_50 _____--___
    
    _4_,_6_96_,_6_8_5_ _____-___ _1_2_,_70_6_,_8_7_3 _____-___
    
    Other receivable Balance 31/12/20P1r8ovision Balance 31/12/201P7rovision
    
    RMB RMB RMB RMB
    
    Shen Ma Packing. ____81_3_,_4_4_0 ____-___ ___81_3_,_4_4_0 ____-___
    
    (2) Balance due to related parties
    
    Accounts payable 31/R12M/2B018 31/R12M/2B017
    
    SZhheonngMyaa PPhacakrminagc.eutical 556,,732626,,766875 522,,045031,,905916
    
    WWiinnedoCwulotuf rteheMWusienuemCity ___44_,_,76_48_69_,,67_3_010__ _____12,,_40_48_50_,,_786_6_60
    
    ___7_1_,_5_2_5_,7_8__3 ___5__7_,9_8_1_,6_7__3
    
    Other payable 31/R12M/2B018 31/R12M/2B017
    
    CShheanngMyua PGarcokuipngC.ompany ___78__,4_41_45_0,9_,07_08__0 ____7_7_,2_0_8_-,9_2_9_
    
    ___78_,_8_6_4_,9_7__8_ ___7_7__,2_0_8_,9__29_
    
    The above amounts due to related parties are unsecured and interest-free.
    
    XI. COMMITMENT Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    1. Important commitments
    
    (1) Capital commitments 31/12/2018 31/12/2017
    
    RMB'000 RMB'000
    
    Cappuitraclhcaosminmg intomne-ncut rfroernt assets ______9_9_6_,_6_7_5 _____1_,2_4_6_,_50__6
    
    (2) Operating lease commitment
    
    As lessee
    
    wSiigthnilfeicssaonrt aorpeearastifnogllolewa:se: Total future minimal lease payments under non-cancelable contract
    
    3R1M/12B/'2000108 3R1M/12B/'2000107
    
    W1 tioth2inye1ayrsear 1210,,755776 1392,,121366
    
    23 tyoea3rsyeaanrds above _______81_40_,,0_06_954_ _______19_15_,,9_344__23
    
    ______1_2_6_,_4_9_2 ______1_5_8_,_6_37_
    
    2. Contingent liability
    
    The Group do not have any significant contingent liabilities as at balance sheet date.
    
    XII. POST BALANCE SHEET DATE EVENT
    
    1. Profit appropriation
    
    aAcccaoshrddinivgidtoentdheofboRaMrdBof6.t0he(idnicrleucdtoinrgretasoxleust)iofonrreaviseerdy o1n0 1s8haArepsriiln2r0e1sp9e, ctht eofC2o0m1p8abnaysepdroopnostehde
    
    irsessuoeludtisohnariesstoofbe68a5p,p4r6o4v,e0d00b.yTthhee aangngurealgagteenearmaloumneteotifngca. sh dividend is RMB 411,278,400. The
    
    XIII. OTHER SIGNIFICANT EVENTS Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Capital management
    
    tThheegmroauipn, toaprgtiemt iozfe tthhee cpaoprittfaollimo asntraugcetmureenotfoefqtuhietygfrionuapnciisntgoaenndsudreebtthfeincaonnctiinngu,osuosaospteoraatcihoinevoef
    
    fthoellogwoianlgopfamrtsa:ximizing shareholder benefits. The capital structure of the group consists of the
    
    (1) Cash and cash equivalents
    
    (2) Share capital, capital reserve, surplus reserve and retained earnings
    
    fTinhaencmiaalnaregpeomrtesntanrdevcioewnssidtehres tghreoucpo'sst ocfapciataplitasltrauncdturteheaccocrorredsipnogndtoingthreiskinsteorfimvaroioruysecaar-peintadl
    
    itysspueisn.gBaadsdeidtioonnatlhsehcahreosicaenodfbtohreromwainnaggeomr reenpta, ythinegglrooaunps.optimizes the overall capital structure by
    
    Segment report
    
    TChheinGa,roFurapnicsep, rSinpcaiipna,llCyheilnegaagneddAinustthraelipar.oIdnucatciocnoradnadncsealwesitohftwheinGe,roburapn'sdyin,taenrndacl hoarmgapnaigznateioinn
    
    dstirvuicdteudrei,ntmo afnoaugrepmaretnst: Crehqiuniar,eSmpeanitns, Fanradncien,teCrnhaille raenpdorAtiunsgtraslyisat.eTmh,e tmheanGagroemupe'sntoppeerrioatdiiocnalliys
    
    tehvaanlu8a7te%s sreegvmeneunet arensdulmtso, rien tohradner99to%alplorocfaittedreersiovuerdcefrsoamndCehvinalau,aatnedpmeroforermthaannce9s2.%In n2o0n1-8c,umrroenret
    
    raespseotrst ianrfeorlmocaattieodn.in China. Therefore the Group does not need to disclose additional segment
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMENTS
    
    1. Cash and bank
    
    31/R12M/2B018 31/R12M/2B017
    
    BCaasnhk balance 579,9933,,017557 501,2085,,299860
    
    Other currency fund ____4_4,_5_9_2_,5_7_7_ ____57__,9_6_0_,1__90_
    
    Total ___6_2_4_,5_8_8_,_8_09_ __5__59_,_1_7_4_,4_6_6_
    
    DAsecaetm3b1erD2e0c1e7m:bReMr 2B0128,6,4t5h,e41b0a)l,anwcheicohf irsehstormicteemd aciansthenoafnctheefuCnodms.pany is RMB 2,611,350 (31
    
    4A4s,5a4t0,38150Dfoercelemttbeerrof2c0r1e8d,ito(t3h1erDeccuermrebnecry20fu1n7d: RoMf Bth5e7,C9o4m6,p1a9n0y) ainndclduedpeo:sidteopfoRsiMt Bof51R,M72B7
    
    for entity card (31 December 2017: RMB 14,000).
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    1. Cash and bank - continued
    
    oArsigainta3l 1maDtuercietymfbreorm2s0i1x8m, othnethsCtoomtwpaenlvye'smtiomnethsdeapmoosuitnstiinngcltuodReMthBe 4s5h,o0r0t0-t,e0r0m0 (d3e1pDoseictsemwbiethr
    
    2017: RMB 5,000,000 ) with interest rate ranging from 1.55% to 2.03%.
    
    2. Notes and account receivable
    
    2.1 Presented by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    NAcocteosurnetcserievcaebilveable ____319_,_,84_48_57_,,29_7_543_ ____4_17_,,68_40_55_,,2_33_033_
    
    Total ____4_1,_3_3_3_,2__2_7 ____4_9,_4_5_0_,5_3_6_
    
    2.2 Notes receivable
    
    (1) Categories of notes receivable
    
    31/R12M/2B018 31/R12M/2B017
    
    Bank acceptances ____3_9,_8_8_5_,_2_5_4 ____4_1_,6_4_5_,2__03_
    
    (2) Pledged notes receivable
    
    As of 31 December 2018, there was no pledged notes receivable (31 December 2017: Nil).
    
    (3) Notes endorsed by the Group to other parties which are not yet due at the end of the period
    
    31/R12M/2B018 31/R12M/2B017
    
    Bank acceptances ___9__4,_7_5_5_,1__2_4 ___7__2_,3_1_6_,5_8__9
    
    Athse aetn3d1oDfetcheempbeerrio2d01i8s ,RnMoteBs 9en4d,7o5r5se,1d2b4y(t3h1e DCoecmepmabneyrto20o1th7e: rRpMarBtie7s2w,3h1ic6h,5a8r9e).noItt yisetfodruethaet
    
    mpaaytmureitnyt ctaonnsoutpbpeliecrass.heTdheis Cveormyploawny, thbeerlieefvoeres ctohnatfirdmuethteotebrmaniknagtiooondofrethpeuteantidoonr,setmheenrtisnkotoesf
    
    rreegceuilvaatibolnes. oIff Cbahniknai,sthuenaGbrloeutpowsoetutllde uthnedenrotatekse olinmimteadtulriaitbyi,liatyccfoorrdtihnegntootetsh.e relevant laws and
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    2. Notes and accounts receivable- continued
    
    2.2 Notes receivable - continued
    
    (4) Notes receivable were reclassified as accounts receivable due to the default of drawer
    
    Aduseatto3th1eDdeecfeamulbt eorf 2d0ra1w8,erth(e3r1eDweacsemnobenro2te0s17re:cNeiivl)a.ble were reclassified as accounts receivable
    
    2.3 Accounts receivable
    
    (1) Disclosure of accounts receivable by categories:
    
    Balance 31B/a1d2/d2e0b1t8s provisions Carrying Amount Balance 31/B12a/d20d1eb7ts provisions Carrying AmountARmMouBnt Prop(%or)tion ARmMouBnt Prop(%or)tion ARmMouBnt ARmMouBnt Prop(%or)tion ARmMouBnt Prop(%or)tion ARmMouBntAccofuonrtswrheiccehivbaabdledebt
    
    aspsreosvsiesdioinndhiavsidbueaelnly __1_,4_47_,97_3 _10_0_.0 ___- _ __-__ __1_,4_47_,97_3 __7_,8_05_,33_3 _10_0_.0 __-__ __-__ __7,_80_5,_33_3
    
    The normal credit term of trade receivables is one month. The trade receivables are interest free.
    
    The aging analysis is as follows:
    
    31/R12M/2B018 31/R12M/2B017
    
    Within 1 year _____1,_4_4_7_,9__7_3 _____7_,8_0_5_,_3_3_3
    
    (2) Provision, reversals and collections during the current period:
    
    A20s1a7t:3N1ilD).eTcehme bCeorm2p0a1n8y, tdhiedrenowtapsronvoipdreo, vreisvieornseproorvwidreitdefoofrf tarnadyeprreocveiisvioanbldesur(i3n1gD20e1ce8m(3b1er
    
    December 2017: Nil).
    
    (3) The balance of accounts receivable at the end of the year
    
    wRitehlathtieonGsrhoipup Amount Aging toPtarol preocretiiovnabolfes
    
    Zhongya Pharmaceutical Other related parties ___1_,4_4_7_,9_7_3 Within 1 year __1_00_._0
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    3. Other receivables
    
    3.1 Presented by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    IDnitveirdeestndrerceeciveiavbalbeles 500,205040,,008008 407,49765,,694226
    
    Other receivables ___5_25__,3_8_9_,2_6_8_ __5_9__2_,2_7_4_,0_7_5_
    
    Total _1_,0__25_,_6_4_3_,3__5_6 __9__99__,8_4_6_,6_4_3_
    
    3.2 Dividend receivables
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/12/2018RMB
    
    WiItnhcilnud1inygea: rSales Company 402,595,884 867,404,116 (770,000,000) 500,000,000
    
    LWainngefsaSngaleCsastel -- 30,070805,,090806 (30(,708050,,908060)) --
    
    BSheiihjienzgi CChhaatteeaauu 4,900-,038 1159,,853510,,200280 (2(01,94,3815,02,6060)0) --
    
    LNaantigofnaanlgWsainleess -- 201,,090801,,041000 (2(01,,098010,,040100)) --
    
    CAhtriiloe Indomita - 2,080,191 (2,080,191) -
    
    Wine Group _______-__ _____6_,4_95_,7_2_8 ____(6_,4_9_5_,7_28_) _______-__
    
    Total __4_0_7,_4_95_,9_2_2 ___96_4_,1_2_8,_65_9_ __(_8_71_,6_2_4_,5_81_) __5_0_0,_0_00_,0_0_0
    
    3.3 Other receivables
    
    (1) Disclosure of other receivables by categories:
    
    Balance 31B/1a2d/2d0e1b8ts provisions Carrying Amount Balance 31/B1a2d/2d0e1b7ts provisions Carrying AmountARmMouBnt Pro(p%or)tion ARmMouBnt Pro(p%or)tion ARmMouBnt ARmMouBnt Pro(p%or)tion ARmMouBnt Pro(p%or)tion ARmMouBntOwthheirchrebcaedivdaebblets for
    
    pasrsoevsisseiodninhdaisvbideueanlly _5_25,_38_9,2_68 __100_.0 ___-_ __- _ _5_25_,38_9,2_68 _5_92_,27_4,0_75 _1_00_.0 ____-_ __-_ _5_92_,27_4,0_75
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    3. Other receivables - continued
    
    3.3 Other receivables - continued
    
    (1) Disclosure of other receivables by categories: - continued
    
    The aging analysis is as follows:
    
    31/12/B20ad18debts Carrying 31/12/2B0a1d7debts Carrying
    
    AmountBalanPceroportion pAromvoisuinotn Aammoouunntt AmounBtalanPceroportion pAromvoisuinotn Aammoouunntt
    
    RMB % RMB RMB RMB % RMB RMB
    
    1Wtioth2inye1ayrsear 43913,,488973,,088814 963..55 -- 43913,,488973,,088814 5839,0,00161,4,18083 909..55 -- 5839,,001016,,148038
    
    2Ovtoer33yyeaerasrs ______8-,3_0_3 ____-- _____--__ ______8-,3_0_3 ____250_32,,_7699_40_ ____-- ____--__ ____2_0523_,,67_99_04
    
    __5_25_,3_8_9,_26_8 _1_00_.0_ _____-__ __5_25_,3_8_9,_26_8 _5_92_,2_7_4,_07_5_ _1_0_0._0 ____-__ __59_2_,2_74_,0_7_5
    
    (2) Accrual, reversal and written-off during the current period
    
    No bad debt accrued or reversed in 2018 (2017:Nil.).
    
    (3) Other receivables written off current year
    
    No other receivables written in 2018 (2017:Nil.).
    
    (4) Disclosure of other receivables by nature 31/12/2018 31/12/2017
    
    RMB RMB
    
    RReecceeiivvaabbllee fdreopmossiut bsidiary 523,57129,,853001 589,8972,,450070
    
    Others _____1_,7_9_6_,9_3__7 ____2_,_3_7_4_,1__68_
    
    ___52__5_,3_8_9_,2_6_8_ __5_9__2_,2_7_4_,0_7__5
    
    (5) Top five entities with the largest balances of other receivables
    
    As at 31 December 2018, the particulars of top five other receivables are as follows:
    
    Nature Amount Aging Propproerptaioynmoefnttsotal
    
    RMB %
    
    SRa&leDs CCoenmtrpeany IInntteerrnnaall bbaallaannccee 132609,,508690,,852769 WWiitthhiinn 11 yyeeaarr 2730..02
    
    YPiaonnteaeirCIansteterlnCathioanteaalu IInntteerrnnaall bbaallaannccee 1120,,740044,,536913 WWiitthhiinn 11 yyeeaarr 22..04
    
    Ningxia Chateau Internal balance ____7_,0_85_,5_4_0 Within 1 year __1._3
    
    __5_1_9_,8_44_,8_9_9 _9_8._9
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    4. Inventories
    
    31/12/2018 Net carrying 31/12/2017 Net carrying
    
    BRalManBce PrRovMisBion aRmMouBnt BRalManBce PrRovMisBion aRmMouBnt
    
    RWaowrkminatperrioaglress 3581,,223000,,757248 -- 3581,,223000,,757248 3071,,180441,,325176 -- 3071,,180441,,325176
    
    Finished goods __2_5_,7_2_3_,4_3_8 _____- __ __2_5_,7_2_3_,4_3_8 __3_9_,0_9_6_,4_8_0 _____- __ __3_9_,0_9_6_,4_8_0
    
    _3_8_5_,1_5_4_,7_4_0 _____- __ _3_8_5_,1_5_4_,7_4_0 _3_4_8_,0_4_2_,0_5_3 _____- __ _3_4_8_,0_4_2_,0_5_3
    
    5. Long-term equity investments
    
    2018 RCMosBt 31/R12M/2B017 forRthMeByear 31/R12M/2B018 Share%holding Voting%power forRthMeByear
    
    CoXstinMjieatnhgodTianzhu (a) 60,000,000 60,000,000 - 60,000,000 60 100 -
    
    CKhyalinngPyaucCkahgaitnegau (a) 2283,,917668,,010603 2283,,917668,,016003 -- 2283,,917686,,106030 10700 110000 --
    
    CNhinagnxgiyauGCrhoawteinagu (a) 336,,550703,,020407 363,,557030,,204070 -- 363,,557030,,204070 10700 110000 --
    
    NIcaetiCohnaatleWauin(ae)s 320,,040400,,050000 302,,404000,,500000 - - 302,,404000,,500000 10501 110000 20,000-,000
    
    BSaeliejisnCgoCmhpataenayu (a) 5779,,290100,,000000 5797,,921000,,000000 -- 5797,,921000,,000000 10900 110000 86179,,480540,,101060
    
    LLaannggffaanngg SCaalsetsel((ba)) 19,813050,,703000 19,813050,,703000 -- 19,813050,,703000 3109 110000 1,798851,,948160
    
    WShiannegShaalieSsales(b) 4,530000,,000000 4,350000,,000000 -- 4,530000,,000000 10300 110000 30,000-,000
    
    JBineigjyinagngSaSlaelses (b) 185000,,000000 180500,,000000 -- 815000,,000000 10100 110000 --
    
    JNininggyxainagWWininee (b) 222,390090,,308080 222,390090,,308080 -- 222,390090,,308080 10900 110000 --
    
    DNiinngglxuioatCe hCahteaateuau (b) 244123,,403693,,550806 424123,,043693,,550860 10,000-,000 241532,,043639,,558006 10605 110000 --
    
    SChhiahnegzainCChahtaetaeuau 880093,,809192,,727580 880039,,801992,,725780 3,000-,000 880123,,809192,,275708 110000 110000 15,531-,228
    
    RH&uaDnrCenenWtrein(ea) 50201,,070000,,000000 50201,,070000,,000000 2,788,950060,,404050 3,28282,,920060,,404050 10702 110000 --
    
    FGrraanpcesWChinaemSpasles Co., 2356,,000205,,040004 236,025-,404 -- 236,025-,404 -100 110000 --
    
    IAWtrCioC 129704,,125480,,511444 219704,,215480,,151444 -- 217904,,214508,,154144 8755 7855 62,,048950,,172981
    
    AEussttaratelia Kilikanoon _____-__ _____-__ __10_7,_19_4,_42_0 __10_7,_19_4,_42_0 80 80 _____-__
    
    _4,_51_6,_20_2,_20_4 _4,_51_1,_20_2,_20_4 _2,_90_9,_60_0,_86_5 _7,_42_0,_80_3,_06_9 __96_4,_12_8,_65_9
    
    (a) TcohnetroClolimngp,arneyferhrainsg1t0o0N%otevoVtiInIIg-1p. ower of those subsidiaries by the way of indirect
    
    (b) TcohnetroClolimngpathnryouhgahsw1h0o0l%ly ovwontiendgsupboswideiraroiefs.these subsidiaries by the way of indirect
    
    DthuerCinogm2p0a1n8y,. there was no significant restriction on the remittance of fund from the investees to
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    6. Fixed assets
    
    (1) Fixed assets
    
    BuRilMdiBngs MaRcMhinBery MotoRrMveBhicles RTMotaBl
    
    3T1o/t1a2l /o2r0ig1i7nal carrying amount 265,340,049 475,569,634 10,129,313 751,038,996
    
    PInucrrcehaassee - 9,345,433 - 9,345,433
    
    DCIePcrteraasnesfer 8,887,802 139,665 - 9,027,467
    
    TDriaspnsofsearl to Investment - (13,137,771) (3,479,487) (16,617,258)
    
    property (VI-8) (_32_,_6_06_,_76_2_)_ ______-___ ______-___ (_32_,_6_06_,_76_2_)_
    
    31/12/2018 _2_4_1_,6_2_1_,0_8_9 _4_7_1_,9_1_6_,9_6_1 ___6_,6_4_9_,8_2_6 _7_2_0_,1_8_7_,8_7_6
    
    T31o/t1a2l /a2c0c1u7mulated depreciation 111,607,494 346,413,532 4,867,069 462,888,095
    
    AIndcdreitaisoens 7,784,794 15,133,656 531,639 23,450,089
    
    DDeiscproeasasel (227,951) (12,642,520) (946,751) (13,817,222)
    
    Transfer toprIonpveersttym(eVnIt-8) _(1_7_,_64_4_,3_6_0_) ______-___ ______-___ _(1_7_,_64_4_,3_6_0_)
    
    31/12/2018 _1_0_1_,5_1_9_,9_7_7 _3_4_8_,9_0_4_,6_6_8 ___4_,4_5_1_,9_5_7 _4_5_4_,8_7_6_,6_0_2
    
    3T1o/t1a2l /n2e0t1c8arrying amount 1_4_0_,1_0_1_,1_1_2_ _1_2_3_,0_1_2_,2_9_3 ___2_,1_9_7_,8_6_9 2_6_5_,3_1_1_,2_7_4_
    
    31/12/2017 _1_5_3_,7_3_2_,5_5_5 1_2_9_,1_5_6_,1_0_2_ __5_,2_6_2_,2_4_4_ _2_8_8_,1_5_0_,9_0_1
    
    A31s, a2t01371:RDMecBem3b6e,3r4290,21889, f)i,xreedfearrsisnegtstowNithotreeVstIr-ic4t5edfoorwdentearislhs.ip is RMB 34,246,887 (December
    
    DAsecaetm3b1erD20e1ce7m:RbMerB220,1080,0,t1h9e7)C,oamndptahneyChoams pnaonyfihxaesdnaossteemtspcolraasrsyifiieddle afsixehdeladssfeotrs saanlde f(ix3ed1
    
    assets under finance leases.
    
    (2) Fixed assets through operating lease
    
    ARmMouBnt
    
    Machinery __1_3_4_,1_1_1_
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    6. Fixed assets - continued
    
    (3) Fixed assets of which certificates of title have not been obtained
    
    As at 31 December 2018, buildings without property certificate are as follows:
    
    certifRiceaatessonosf wtithley have
    
    ARmMouBnt not been obtained
    
    Feermxpeenrtiamtieonnt cbeunitlrdeinogffaicned,workshop ___3_,6_5_3_,4_9__4 Processing
    
    7. Construction in progress
    
    (1) Construction in progress
    
    31/R12M/2B018 31/R12M/2B017
    
    RDeracionnasgterupcrtoiojencot f boiler heating systems -- 33,,255006,,300409
    
    ONothne-rdsry sticker labeling machine project ____24_,,_21_00_65_,,42_63_47_ _________--___
    
    ____6_,_3_1_1_,7_0_1_ ____6__,7_5_6_,3_4__9
    
    (2) Current year movement on important construction:
    
    Accumulated progTrheess of
    
    Budget 31/12/2017 Addition TraPnPsfEer to 31/12/2018 expbeunddgietutre/ constnructio Financed by
    
    RMB RMB RMB RMB RMB %
    
    Rheeactoinngstsruycstteiomnsof boiler 13,000,000 3,556,349 - (3,556,349) - 100.0 100.0 Self-raised
    
    mNoanch-dinrye pstriocjkeecrt labeling 6,920,000 - 5,431,516 (1,326,252) 4,105,264 78.5 78.5 Self-raised
    
    There was no interest capitalized in construction in progress in 2018.
    
    (3) pArsovatis3io1nDwecaesmmbaedre2(03118D, tehceerme bwears2n0o17p:rNovili)s.ion was made for the construction in process, and no
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    8 Bearer biological assets
    
    Bearer biological assets are grape trees,which measured in cost method.
    
    biolIomgmicaatluarsesets bioloMgiactaulraessets Total
    
    RMB RMB RMB
    
    3T1o/t1a2l /o2r0ig1i7nal carrying amount 6,306,963 130,929,124 137,236,087
    
    ICnuclrteivasaeted increase 12,930,423 - 12,930,423
    
    Trafrnosmferimtommaatuturereaasssesetsts _(_9_,8_0_2_,_1_9_1_) ___9_,_8_0_2_,_19__1 _______-___
    
    31/12/2018 _9__,4_3_5_,1_9_5__ 1_4__0,_7_3_1_,3__15__ _1_50__,1_6_6_,_5_1_0
    
    3T1o/t1a2l /a2c0c1u7mulated depreciation - 17,663,548 17,663,548
    
    IAndcdreitaisoens _______-___ ____7,_5_0_0_,_1_6_9 ___7_,5_0_0_,_16_9_
    
    31/12/2018 _______-___ __2_5__,1_6_3_,_7_17_ _2_5__,1_6_3_,_71__7
    
    3T1o/t1a2l /n2e0t1c8arrying amount _9_,_4_3_5_,1_9_5__ _11_5__,5_6_7_,_5_98__ _1_2_5,_0_0_2_,7_9_3_
    
    31/12/2017 __6__,3_0_6_,9_6_3_ __11__3_,2_6_5_,_5_7_6 _11__9_,5_7_2_,_53__9
    
    2A0s17at: N31il)D. ecember 2018, there is no biological asset with ownership restricted (31 December
    
    pArsovaitsi3o1nDweacsemmabdeer. 2(30118D,etcheemrebeisr 2n0o1i7n:dNicial)ti.on that biological assets may be impaired, and no
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    9. Intangible assets
    
    Intangible assets Land use right
    
    RMB
    
    T31o/t1a2l /o2r0ig1i7naalncda3rr1y/i1n2g/2a0m1o8unt _9_6__,5_9_4_,7_6__6
    
    3T1o/t1a2l /a2c0c1u7mulated depreciation 26,971,547
    
    AIndcdreitaisoens ___2,_3_7_9_,_15_3_
    
    31/12/2018 _2__9_,3_5_0_,_7_0_0
    
    3T1o/t1a2l /n2e0t1c8arrying amount __67__,2_4_4_,0_6_6_
    
    31/12/2017 __69_,_6_2_3_,2_1__9
    
    A(Dseacte3m1bDere3ce1m, 2b0e1r72:0R1M8,BIn5ta2n,7g2ib0l,e91as2s)e, tPslweaisthe rreefsetrrictoteNdootwenVeIr-s4h5ipinardeeRtaMil.B 50,902,950
    
    10. Deferred tax assets
    
    Recognised deferred tax assets not presented at the net amount after offset
    
    31/12/2018 31/12/2017
    
    Item Deductible Deferred Deductible Deferredtemporary difference tax assets temporary difference tax assets
    
    RMB RMB RMB RMB
    
    Un-recaolmizpeadnpyrotrfaint sfarocmtioinnstra 5,897,436 1,474,359 7,163,828 1,790,957
    
    RUentpiraeidmbenotnubsenefit 1307,,917433,,095000 29,,549335,,298498 1350,,082572,,711335 82,,595154,,627883
    
    DDeedfeurcretidbliencloosmsees 1320,,432431,,951721 73,,068055,,939738 1465,,558216,,632277 141,,134851,,450872
    
    96,779,869 24,194,967 115,151,630 28,787,907
    
    11. Other non-current assets
    
    31/R12M/2B018 31/R12M/2B017
    
    Receivables from subsidiaries __9_7_2_,_7_0_0_,0_0_0_ _3_,7__18_,_6_7_4_,1_6__6
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    12. Short-term borrowings
    
    31/R12M/2B018 31/R12M/2B017
    
    Credit loans __1_5_0_,_0_0_0_,0_0_0_ __6_0__0,_0_0_0_,0__0_0
    
    As at 31 December 2018, credit loans detail are as follows:
    
    Loan bank LoanRsMamBount Loan term Interest rat%e in contract Inter%est rat
    
    ICBC Yantai branch _1_5_0_,0_0_0_,0_0_024 May 2018 – 24 May 2019 Annual benchmark rate 4.35
    
    13. Notes and accounts payable
    
    The aging analysis of accounts payable are as follows
    
    31/R12M/2B018 31/R12M/2B017
    
    W1 tioth2inye1ayrsear 132,664-,195 97,505366,,188436
    
    O2 vtoer33yyeaerasrs _______3_9_,3_719_5_4 ______2_4_0_-,_09__5
    
    __1__3_2,_7_0_4_,3_0_4_ ____9_7,_8_3_3_,_12_4_
    
    14. Employee benefits payable
    
    (1) Employee benefits payable
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    PShoostr-td-teemrmisssiaolnarbieesneafnidtswelfare 60,050,963 97,491,895 (95,341,628) 62,201,230
    
    Te-rmpriendaetitoenrmbienneedfipt rovision plan __1_0_,0_5_7-_,1_1_3 ___65_,,27_81_56_,,24_04_81 __((65_,,_1782_95_,,44_01_12_)) __1_0_,1_4_3-_,9_4_9
    
    __7_0_,1_0_8_,0_7_6 _1_0_9_,4_9_3_,5_4_4 (_10_7_,_25_6_,4_4_1_) __7_2_,3_4_5_,1_7_9
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    14. Employee benefits payable - continued
    
    (2) Short-term salaries and welfare
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    SSatalaffribeesnaenfdit bonus 60,69347,,612703 836,,819921,,985111 (8(61,,619091,,881101)) 62,97377,,716713
    
    SIntacflfudweesl:fare - 4,004,223 (4,004,223) -
    
    MInjeudriycailnsinusruanracnece -- 3,247869,,993014 (3(,427869,,993014)) --HousingMfautnerdnity insurance -- 3,200357,,939838 (3(,020357,,939838)) --Union fee and education fee ___1_,8_9_6_,8_7_2 ____5_2_9_,7_9_0 ___(_52_9_,7_9_1_) ___1_,8_9_6_,8_7_1Total __6_2_,6_2_8_,6_6_5 __9_7_,6_2_4_,7_6_8 _(9_5_,_34_1_,6_2_8_) __6_4_,9_1_1_,8_0_5Less: Non-current liabilities ___2_,5_7_7_,7_0_2 ___2_,7_1_0_,5_7_5Short-term salaries and welfare __6_0_,0_5_0_,9_6_3 __6_2_,2_0_1_,2_3_0(3) Predetermined provision plan
    
    31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    UPennesmiopnloyment insurance __--___ ___6,_25_53_04,,_49_54_65 _(_6_(,25_53_04_,,49_45_65_)) __--___
    
    __-___ ___6,_7_8_5,_4_0_1 _(_6_,7_8_5_,4_0_1_) __-___
    
    TgohveeCrnommepnatniynsptaitrutitcioipna.tAescicnorpdeinnsgiotno itnhsousreanpclaenasn, dthuenCemomplpoaynmyepnatyisnspuernasnicoenpalnandsuensetambplilsohyemdebnyt
    
    tinhesuseramncoentehalcyhexmpoenntsheso,nthteheCobmaspisanoyf d1o8e%s naontdb0e.a7r%anlyasfturptehreirodpasyamlaernytroebspliegcattiivoenl.yT. hAispayretafrrothme
    
    3C2o3m,8p5a2n)yresshpoeucltdivpelayy inRtMo Bpen6s,5io3n4,i4n4s5uraanncdeRanMdBun2e5m0,p9l5o6ym(2en0t17in: sRurManBce.8,A59s5a,2t 1351 aDnedceRmMbeBr
    
    22001187,: Nthiel)Cwohmicphanisydduoeestontohtehpaevnesiuonnpianisdurpaenncseioanndanudneumnepmlopylmoyemnteinntsuinrsaunrcaencpelan(3a1ndDencoetmpbaeidr
    
    at the end of the reporting period.
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    15. Taxes payable
    
    31/R12M/2B018 31/R12M/2B017
    
    VCoalnuseumadpdteiodntataxx 31,,698062,,579991 6,450-,962
    
    UCorbrpanorlaatniodnuisnecotamxe tax 685-,626 72864,,062679
    
    CInidtyivcidounastlriuncctoiomnetataxx 6,33166,,301041 6,364305,,313938
    
    OPrtohpeersrty tax ______22_44_30_,,_2818_46_ ______2_84_92_,,_863_62_9
    
    ___1_3_,_1_1_1_,4_3_1_ ____14_,_5_6_9_,6_9_0_
    
    16. Other payables
    
    16.1 Presented by categories
    
    31/R12M/2B018 31/R12M/2B017
    
    OInttheerersptapyaaybalbesle __6__07__,71_89_31_,,2_256__09 ___54_4_,_67_51_23_,,5_107_2_0
    
    ___60_7_,_9_7_4_,_5_1_9 __5_4_5__,3_6_5_,_67__2
    
    16.2 Other payables
    
    (1) Natures of other payables are as follows
    
    31/R12M/2B018 31/R12M/2B017
    
    PPaayyaabblleestofosruebqsuidipiamrieenst and construction 58150,,504544,,403581 5348,,553308,,362873
    
    ODethpeorssits from suppliers ____56_,,_92_18_22_,,5_2_800_0 ____1__,41_68_13_,,10_06__20
    
    ___6_07__,7_9_3_,2__6_9 ___5_4_4,_7_1_3_,1_7_2_
    
    (2) As at 31 December 2018, there were no significant outstanding balance aged over than one year.
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    17. Capital reserve
    
    2018 31/R12M/2B017 InRcMreaBse DRecMreBase 31/R12M/2B018
    
    Share premium __5_5_7_,_22_2_,_4_5_4 ___-___ ___-___ __5_5_7_,2_2_2_,_4_5_4
    
    18. Operating income and costs
    
    Operating income is analysed as follows:
    
    R20M1B8 R20M1B7
    
    OPrtihnecripoapleorapteinragtiinngcoinmceome __8_7_4_,22_,19_52_4,_0,_98_88_2 _1_,3_1_0_,_84_14_33_,,44_14_04_
    
    __8_7_6_,4_4_7_,_0_7_0_ _1_,3_1_1_,_2_5_6_,8_5_4_
    
    Operating cost is analysed as follows:
    
    R20M1B8 R20M1B7
    
    OPrtihnecripoapleorapteinragticnogstcost __7_7_2_1,4_,99_87_9,_7,_62_69_2 _1_,_1_65_,_35_69_20_,,76__190_8
    
    __7_7_4_,4_8_7_,_0_3_1_ _1_,_1_65_,_9_5_3_,4__0_8
    
    19. Taxes and surcharges
    
    R20M1B8 R20M1B7
    
    CCoitnyscuomnpsttriounctitoaxn tax 273,,226124,,250439 1530,,213906,,686977
    
    PErdoupcearttiyontafxee and surcharges 12,,185549,,641862 25,,826177,,911016
    
    SLtaanmdputsaextax 3,311608,,583559 3,610683,,546591
    
    Others ______3_7_6_,_51__7 _____1_,2_8_5_,_62__4
    
    ___3__8,_3_4_6_,_7_6_1 ____76_,_5_7_0_,2_2_5_
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    20. General and administrative expense
    
    R20M1B8 R20M1B7
    
    MSaalainryteannadnceemfpeeloyee benefit 585,,359860,,483882 386,,413920,,950254
    
    OSefrfviciecefefeee 33,,649415,,232108 39,,819841,,009015
    
    PDreoppreerctiyatiinosnurance fees 23,,396751,,714820 43,,028806,,516214
    
    ALemasoirntigzaetxiopnenses 22,,377990,,135538 22,,629756,,189106
    
    SSehcuuttrlietybaunsd sanitation fee 1,476432,,379402 1,971491,,466340
    
    TGrraeveenlilninggfeeexpaemnosretsization 332124,,508606 532974,,646044
    
    Others _____5_,0_4_2_,_1_39_ _____5,_4_9_8_,7__57_
    
    ___9__0,_5_0_5_,2__0_8 ___7_9_,_1_1_9_,1__3_5
    
    21. Financial Expense
    
    R20M1B8 R20M1B7
    
    IEnxtecrheasntgiencloomsse (414,8,42413,3,17725) (181,6,00420,1,89392)
    
    IBnatenrkesctheaxrgpeesnses ___1_16__,,00_71_50_,,13_5_037_ ___1__7,_74_81_44_,,17__584_1
    
    __(_2_0_,2_9_2_,_7_3_7_) ______6_3_7_,5__68_
    
    22. Investment income
    
    R20M1B8 R20M1B7
    
    Lofnogr-bteyrmusienqguitthyeicnovsetsmtmeethnot dincome accounted ___9_6_4_,1_2_8_,_6_5_9 ___79_8_,_8_7_7_,_90_5_
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    22. Investment income - continued
    
    Awimthoningvtehsetmloenngt-itnecrmomeequaictcyoiunnvteinstgmfeonrtminocroemtheaanc5co%unotfedthfeoCr boymupsainnyg'sctoosttaml pertohfoidt ,btehfeorienvtaexsteaeres
    
    as follows:
    
    Investees R20M1B8 R20M1B7
    
    BSaeliejisnCgoCmhpaatenayu 867,404-,116 58777,,081030,,002002
    
    XWiinnjeiaSnagleTsianzhu _________--___ ___5_43_8,_,64_62_10_,,0_327_3_9
    
    ___8_6_7_,4_0_4_,_1_1_6 ___7_66_,_8_9_4_,4_2__4
    
    Aresmaittt3an1cDeeocfeimnvbeesrtm20e1n8t ianncdoamte31toDtheeceCmobmepra2n0y1.7, there are no significant restriction on the
    
    23. Supplement to cash flow statement
    
    R20M1B8 R20M1B7
    
    (1) Caasdhjuflsotwinsgftrhoemneotpperraotfiint:g activities calculated by
    
    ANedtdp: rDoefiptreciation of investment properties 969,15,88587,5,97032 793,559908,,601100
    
    ADemporertciizaattiioonnoofffiinxteadngaisbsleetsassets 223,,435709,,015839 322,,237019,,115737
    
    D(Geapirnesc)iLaotisosnesofonbidoilsopgoicsaall oasfsaestssets (127,4,51010,9,16629) 6,72891,,642475
    
    FIninvaenstcmeeenxtpienncsoems e (96147,1,82088,6,55699) (79188,8,67174,9,30956)
    
    DIneccrereaassee//((idneccrereaassee))inindienfveerrnetdortiaexs assets (374,1,51922,6,98470) 4(414,8,60920,6,35655)
    
    DIneccrereaassee/i(ndetrcardeeasree)ceivinabtrleasde payables ___379__,20,_76_02_,9_1,56_79_5_ ___1(0_33_,5,_44_01_6,_3,8_59_28_)Net cash flows from operating activities __14__3,_2_0_5_,8_3__1_ ___59__8,_0_6_9_,7_6_9_XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report23. Supplement to cash flow statement - continued
    
    (2) Significant investing and financing activities not involving cash receipts and payments
    
    R20M1B8 R20M1B7
    
    Cheaqnugietythinevcelsatimmeonntssubsidiaries into Long-term 2,802,406,445 2,386,907,749
    
    Incwreitahsebathnekiancvceesptmtanencet sin subsidiaries - 96,345,678
    
    Rewcoitvherbathnekiancvceesptmtanencet sin subsidiaries _________-___ __(_9_6_,3_4_5_,_6_7_8_)
    
    _2_,8_0__2_,4_0_6_,_4_45_ _2_,3_8__6_,9_0_7_,7__4_9
    
    24. Cash and cash equivalents
    
    R20M1B8 R20M1B7
    
    CLelosssi:ng balance of Cash and bank 624,588,809 559,174,466
    
    RReessttrriicctteedd boathnekrdmeopnoesittasry assets 424,,569121,,537570 572,,966405,,141900
    
    Deposit with a period of over three months ____4_5_,0_0_0_,0_0__0 ____5__,0_0_0_,0__0_0Closing balance of cash and cash equivalents ___5_32__,3_8_4_,_8_8_2 __4_9_3__,5_6_8_,8_6_6_
    
    R20M1B8 R20M1B7
    
    CInacslhudainndg:bCanaksh and bank 532,3834,,817872 493,5658,,288606
    
    Bank deposits on demand __5__3_2,_3_8_1_,7__0_5 ___4_9_3,_5_6_3_,5_8__6
    
    Closing balance of cash and cash equivalents ___5_32__,3_8_4_,8_8_2_ __4__9_3,_5_6_8_,8_6_6_
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    25. Related party transactions
    
    (1) Purchase of materials
    
    R20M1B8 R20M1B7
    
    OSuthbesridriealraiteesd parties ___28_098__,,88_90_87_,,81_1_266_ ___358_2_2_,,43_99_45_,,_639_222_
    
    __2_9_8_,_7_0_5_,9_4__2 __4_3__4,_8_9_0_,0__14_
    
    (2) Sales of goods
    
    R20M1B8 R20M1B7
    
    OSuthbesridriealraiteesd parties __8_6_87_,_,94_59_51_,,_916_10_0 _1_,_30__29,_,20_50_60_,,62_50_40_
    
    ___8_76_,_4_4_7_,0__70_ _1_,_3_1_1,_2_5_6_,8__54_
    
    (3) Sales of Fixed assets
    
    R20M1B8 R20M1B7
    
    OSuthbesridriealraiteesd parties ______1_3_4_-,4_4__5 ___4_7_3,,_89_34_43_,,_620_43_3
    
    ______1_3_4_,_44__5 ____5_1,_7_7_7_,8_4_6_
    
    (4) Interest income from occupation of funds
    
    R20M1B8 R20M1B7
    
    Subsidiaries ____3_5,_8_2_3_,_55_6_ ___1__4_,9_1_2_,_6_4_9
    
    (5) Lease income
    
    R20M1B8 R20M1B7
    
    Subsidiaries _____1_,9_9_7_,_16_4_ ______7_3_9_,4_9_1_
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    25. Related party transactions - continued
    
    (6) Guarantees
    
    guaWrahnetetheesrare
    
    Guaranteed party Currency Amount Beginning date Due date fulfilled completely
    
    RA&usDtraClieannteKrilikanoon RMB 500,000,000 8 March 2017 8 March 2022 No
    
    Estate AUD 17,000,000 13 December 2018 13 December 2023 No
    
    26. Receivables and payables to related parties
    
    (1) Trade receivables
    
    Trade receivables 31/12/2018Bad debts 31/12/2017 Bad debts
    
    BRalManBce prRovMisBion BRalManBce prRovMisBion
    
    Other related parties __1__,4_4_7_,9_7_3_ _____-__ __7__,8_0_5_,_33__3 _____-__
    
    Other receivables 31/12/2018Bad debts 31/12/2017 Bad debts
    
    BRalManBce prRovMisBion BRalManBce prRovMisBion
    
    OSuthbesridriealraiteesd parties _52_3__,58_71_93_,,8_43_41_0 ____--___ 5_8_9,_8_98_71_,3_4,_047_4_0 ____--___
    
    _52_4_,_3_9_3_,2_7_1_ ____-___ _5_9_0,_7_1_0_,8_4_7_ ____-___
    
    Other non-current assets 31/12/2018Bad debts 31/12/2017Bad debts
    
    BRalManBce prRovMisBion BRalManBce prRovMisBion
    
    Subsidiaries __9_7_2,_7_00_,_0_00_ _____-__ _3_,7_1_8_,6_7_4_,1_6_6 _____-__
    
    Trehpeayamboevnet.receivables due from related parties are unsecured, have no interest or fixed date of
    
    XIV. NOTES TO COMPANY FINANCIAL STATEMYanEtaNi CThSan-gycuoPniotinneeureWdine Co. Ltd. 2018 Annual Report
    
    26. Receivables and payables to related parties - continued
    
    (2) Trade payables
    
    Trade payables 31/R12M/2B018 31/R12M/2B017
    
    Other related parties ____2_8,_8_9_2_,5_8__3 ____2_9,_1_4_5_,9_1__4
    
    Other payables 31/R12M/2B018 31/R12M/2B017
    
    SOuthbesridriealraiteesd parties __5__85__,40_54_40_,,00__3008_ ___5_3_4_,5_3_0_-,_3_2_3
    
    __5_8_5__,4_9_4_,0_3__8 ___5_3_4_,5_3_0_,_3_2_3
    
    rTehpeayamboevnet.payables due to related parties are unsecured, have no interest or fixed date of
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    AYEPPAERNEDNIXDEIDSU3P1PDLEECMEEMNBTEARR2Y01IN8FORMATION TO FINANCIAL STATEMENTS
    
    I. DETAILS OF EXTRAORDINARY PROFIT AND LOSS
    
    R20M1B8
    
    CGoorvpeornramteenintcgormanetstacxreedfifteecdt in profit and loss 11,368,355
    
    t(hexatceapret fcolorstehloysererleacteudrrtiongthgeoGverronump'esnotpgerraantitosn
    
    Othanerdnhoanv-eoppreorapteirngbaisnicsoomfecaalncduleaxtipoenn)se 873,,821871,,440314
    
    CThoerpiomraptaectinocfonmoen-tcaoxnetfrfoelclitng interests' equity (25(,110537,,311818))
    
    __________
    
    _7__7_,2_0_6_,6_9_1_
    
    __________
    
    Tthhee rCeogmulpatainoyn'ss eoxftrtahoerd"inpaurbylipcrooffiftearnindgloosfs isteecmusriatireesreocfogthneizeCdoimnpaacncyordDainsccelowsuirthe
    
    Explanatory Notice No. 1 - non-recurring profit and losses" (SFC [2008] No. 43).
    
    II. RETRUN ON EQUITY ("ROE") AND EARNINGS PRE SHARE ("EPS")
    
    rTehgeulaCtioomnspaonfyt'sheR"OInEforamnadtioEnPPSreapraerincgalacnudlatDedisclionsuarcecoRrudlaensceof wPuitbhlicthCeomCpSaRnCy
    
    No. 9 - calculation and disclosure of ROE and EPS" (Revised 2010).
    
    2018 WeighRteOdEaverage Basic EPS
    
    % RMB
    
    NNeett pprrooffiitt aattttrriibbuuttaabbllee ttoo sshhaarreehhoollddeerrss of the Company 11.23 1.52
    
    of the Company deducting extraordinary profit and loss _1_0_._4_0 _1_._4_1
    
    _____ ____
    
    The Company did not have any potential dilutive shares.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    2017 WeighRteOdEaverage Basic EPS
    
    % RMB
    
    NNeett pprrooffiitt aattttrriibbuuttaabbllee ttoo sshhaarreehhoollddeerrss of the Company 12.14 1.51
    
    of the Company deducting extraordinary profit and loss _1_1_._6_0 _1_._4_4
    
    _____ ____
    
    The Company did not have any potential dilutive shares.
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    Yantai Changyu Pioneer Wine Co. Ltd. 2018 Annual Report
    
    XII. Reference Documents
    
    ((12))TThhee oFriingainncaliaolfSAtantneumaelnRtsepaourttoaguratopghreadphaenddbsyigtnheedchbayirtmheanc.hairman, chief accountant and
    
    (a3c)cTohuentPanrtosspineccthuasrgaen.d Public Offering Announcement for Stock B in 1997; The Prospectus
    
    (a4n)dTThheeoSrhigairneasl’sCohfaanlgl edo&cuPmuebnlitcsOanffderainnngoAunnncoemunecnetms ethnattfothreSCtoocmkpAaniny 2m0a0d0e. public during
    
    the report period in the newspapers designated by China Securities Regulatory Commission.
    
    Yantai Changyu Pioneer Wine Co. Ltd.
    
    Board of Directors
    
    April 20th, 2019

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