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个股公告正文

张 裕B:2019年半年度报告(英文版)

日期:2019-08-28附件下载

    Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
    
    Yantai Changyu Pioneer Wine Co., Ltd.
    
    2019 Semi-annual Report
    
    Final 2019-03
    
    August, 2019
    
    Contents
    
    2019 Semi-annual Report.................................................................................................................. 1
    
    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 .................................................................................. 9
    
    IV. Management Discussion and Analysis ................................................................................... 12
    
    V. Major issues ............................................................................................................................... 26
    
    VI. Changes in Shares and the Shareholders’ Situation .............................................................39
    
    VII. Related Situation of Preferred Shares ..................................................................................44
    
    VIII. Situation for Directors, Supervisors, Senior Executives..................................................... 45
    
    IX. Related Situation of Corporation Bonds ................................................................................47
    
    X. Financial Report.......................................................................................................................... 47
    
    XI. Reference Documents.............................................................................................................. 162
    
    I. Important Notice, Contents and Definition
    
    oTfhethbeoaCrdomofpadniryecgtourasr,atnhteeebotahred torfutshufpuelnrveissso,rsa,cdciurreacctyorsa,nsdupceormvipsolertsenanesdsseonfiotrheexceocnutteivnetss
    
    ocomnitsasiinoends,ianndseumnid-aenrtnaukaelinredpivoirdtuwalitahndnojofianltsleegreacl oliradbsi,limtieissl.eading statements or significant
    
    Mchra.rgZehoouf aHcocnogujniatinngg (wPeorrskonasinwcehllaragsePoefrstohne iCnomchpaargney)oafnadccMour.nJtiinagngoJrgiaannxu&n a(Pcceorsuonnt iinn
    
    scehmarig-ean) nausaslurreepothrte. truthfulness, accuracy and completeness of the financial report in the
    
    Nseomid-airnencutoarlsr,epsourpt.ervisors or senior executives issue a statement of objection to 2019
    
    Edexlcibeeprtatfinogllothweinsgemdi-iarnecntuoarl, reoptohretr. directors have personally attended the meeting for
    
     Name of director not    Position of director     Reason of not
     attending the meeting   not attending the       attending the meeting   Name of entrustee
     personally             meeting personally     personally
     Duan Changqing       Independent director    On a business trip      Wang Zhuquan
    
    
    pRreogcaersdsi,npglemasaejorrefreirsktos “th1a0t. tRhieskCsofmacpeadnwy imthabyyftahceeCdoumrinpgantyheanpdroredsupcotinosne manedasmuraensa”gienm“eInVt
    
    cMaraenfauglleymaenndt pDayisactutsesnitoionnatondinvAensatmlyesnist”risikns.this report. Investors are suggested to read
    
    Twhilel nCootmbepatnraynshfaesrrneod tpolaenqutoityd.istribute cash dividends and bonus shares and capital reserve
    
    Definition
    
              Definition Item            Refers to                Definition Content
    Company/this Company              Refers to  Yantai Changyu Pioneer Wine Co., Ltd.
    SChhaarneghyouldGerroup/Controlling 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 AccountantsCo.,LTD (special general partnership)
    CNY                               Refers to  Chinese Yuan
    
    
    II、Brief Introduction for the Company and Main Financial Indicators
    
    1. Company’s information
    
    Abbreviation oftheShares:   ChangyuA、ChangyuB          CodenumberoftheShares  000869、200869
    AafbtebrreavltieartaiotinonoftheShares   -
    Place oflistingoftheShares  ShenzhenStockExchange
    Legal Name inChinese       烟台张裕葡萄酿酒股份有限公司
    Abbreviation of Chinesename张裕
    Legal NameinEnglish      YANTAICHANGYUPIONEERWINECOMPANYLIMITED
    Abbreviation ofEnglishname CHANGYU
    Legal Representative       Mr.ZhouHongjiang
    
    
    2. Contact person and information
    
                  Secretary of Board of Directors      Authorized Representative of the SecuritiesAffairs
    Name     Mr.JiangJianxun                          Mr.LiTingguo
    Address    56DamaRoad,Yantai,Shandong,China          56DamaRoad,Yantai,Shandong,China
    Tel       0086-535-6602761                         0086-535-6633656
    Fax       0086-535-6633639                         0086-535-6633639
    E-mail     jiangjianxun@changyu.com.cn                 stock@changyu.com.cn
    
    
    3. Other information
    
    1) The Company’s contact information
    
    Wandheet-hmeraitlheardedrisesasndyucrhinagngtheeinretphoerCt poemripoadn.y’s registered address, office address, post code, website
    
    □Available ?Not available
    
    Tthheerreepiosrnt opecrhioandg. eFoinr dtheetaCiloedmipnafnoyrm’saotifofinc,epaledadsreesrse,fperostot c2o0d1e8, wanenbusaitlereapnodret.-mail address during
    
    2) Information disclosure and file location
    
    Whether there is any change in the information disclosure and file location during the report period.
    
    □Available ?Not available
    
    TwheebrseitiesansosicghnaendgbeyinCtShReCnatmo ecaorfrynethwesspeampei-rasninnuwalhircehpothrteaCndomthpealnoyc’astiionnfoormf tahteioCnoims dpiasncylo’ssed, the
    
    rseepmoir-ta.nnual report during the report period. For detailed information, please refer to 2018 annual
    
    4. Key accounting data and financial indicators
    
    fWishcaelthyeeratrhse. Company makes retroactive adjustments or restates the accounting data of previous
    
    □Yes ?No
    
                                During the report period In the same period of last  More or less than lastyearyear (%)
    Business revenue (CNY)               2,558,274,785           2,828,230,064                -9.55%
    Nsheatrephrooflidteartstroibfuthteedlitsotetdhe          603,403,789            635,837,405                -5.10%
    company (CNY)
    Nsheatrephrooflidteartstroibfuthteedlitsotetdhe
    ciroremgpualanryparfotefirtdaenddulcotsinsgthe              552,490,695            606,678,719                -8.93%
    (CNY)
    Nopeetrcaatisnhgfalocwtivsiftireosm(CthNeY)499,476,006            552,753,472                -9.64%
    (BCaNsiYc/esahranrien)gsper share                         0.88                   0.93                -5.38%
    (DCiNluYte/dsheaarren)ingsper share                       0.88                   0.93                -5.38%
    rWateeigohfttehdeanveetraasgseetfsorearning                  6.13%                  6.89%                -0.76%
                                 The end of this report     The end of last year     More or less than lastperiodyear (%)
    Total assets (CNY)                   13,383,093,433          13,117,729,052                2.02%
    NsheatreAhsosledtesrasttorfibtuhteeldisttoedthe9,791,885,091           9,606,099,365                1.93%
    company (CNY)
    
    
    a5.ccDoiuffnetrienngcsetsainndaacrcdosunting data under PRC accounting standards and international
    
    i1n)tDerinffaetrieonncaelsaocfconuent tpirnogfisttaannddanredtsaasnsedtPinRtCheacficnoaunnctiianlgrsetpaonrdtadridssclosed according to both
    
    ?Available ?Not available
    
    Unit:CNY
    
                          shareNheotldperorsfiotfattthreibluisteteddtocotmhepanyNet Assetosfatthtreibliustteeddtcootmhepasnhyareholders
                          Current period       Last period      End of period    Beginning of period
     aAccccoourndtiinnggtoPRC        603,403,789       635,837,405    9,791,885,091        9,606,099,365
     standards
     Item and amount adjusted according to international accounting standards
     iAnctecronradtiinognatol
     astcacnoduanrtdisng       603,403,789       635,837,405     9,791,885,091       9,606,099,365
    
    
    f2o)rDeiigffneraecnccoeusnotifnngesttparnodfaitrdansdanndetPaRssCetaicncothuentfiinngansctaianldraerpdosrt disclosed according to both
    
    □Available ?Not available
    
    TbohtehrefoarreeignnoadcicffoeurnenticnegssotafnndeatrpdrsoafintdanPdRnCetacacsoseutnitnintghestfainndaanrcdiasldruerpionrgt tdhiescrleopsoerdt apcecroiordd.ing to
    
    s3t)aEnxdpalradnsation of the differences in accounting data under domestic and overseas accounting
    
    □Available ?Not available
    
    6. Item and amount of irregular profit and loss
    
    ?Available □Not available
    
    Unit:CNY
    
                                                                     Amount      Explanation
    oPfropfriotvainsdiolnosfsoronimdpisapiromsaelnotfofnoanss-ectusr)rentassets (including the offset           1,138
    gGoovveerrnnmmeennttggrraannttsstchraetdairteedclionsceulyrrreenltatperdoftiotathnedelnotsisty('esxbcuespitnfeosrs
    aacncdoarrdeanecnejowyeitdhwnaitthioanaqluuontaifoorrmwistthanadlaimrditedquantity in                64,211,892
    aObtohvere-nmoenn-otipoenreadtinitgeminscomeand expenditure besides                     3,411,864
    Less: Amount affected by income tax                                 16,671,778
          Amountaffected by minority equity (after tax)                       40,022
    Total                                                             50,913,094       -
    
    
    ThahsedreefaisnoendsbsyhavlilrtbueemoafdtheecElexaprlaanndatdoerfyinNitoetliyceasontoPtuhbeliircreCgoumlaprapnryo’fsitInanfodrmloasstiothnaDt tihseclCosoumrepaNnoy.1
    
    -loIsrsreagsuslpaercPifrieodfitinanthdeLEoxspslaanndataosrytoNreogtiacredoinngPthuebliircreCgoumlaprapnryo’fsitIannfodrlmoasstioasnrDecisucrlroesnutrperoNfoit.1an-d
    
    Irregular Profit and Loss.
    
    □Available ?Not available
    
    lTohsesrieniascncoorsditaunacteiownitthhatthteheEixrprelagnualatorrpyroNfoittiacnedolnosPsuibsldicefCinoemdpaanndy’sspIencfiofiremdaatsiornecDuirsrcelnotspurroefiNtoa.n1d-
    
    Irregular Profit and Loss during the report period.
    
    III. Summary of the Company’s Businesses
    
    1. Main businesses during the report period
    
    Whether the Company needs to follow the disclosure requirement of special business
    
    No.
    
    Dcounrsinugmethrse wreipthorht epaelrthioyd,anthde fCasohmiopnaanbyl’es amlcaoihnobliucsidnreisnsksi.s Ctoomprpoadruecdewanitdh oeparelriaetre swtaignee, athnedrebraarnedyn,othmuasjoprrocvhiadninggesthine dthoemCesotmicpaanndy’fsormeiaginn
    
    blounsginteesrsmes,.thAeltChohuingehsethwerieneisinadcuesrttrayinisflguecntueraatilolynianntdheexgirsotswdthowstnawgearadnpdrsetsisllurreeminaitnhethdeormiseisntgictrweninde. mThaerkCetomatpparneysetnatkiens sthhoerdtotemrmin,asnetepnoisnititohne
    
    in the domestic wine market.
    
    2. Major changes of main assets
    
    1) Major changes of main assets
    
              Mainassets                          Explanation of major changes
    Equity asset                   No major change
    Fixed asset                    No major change
    Intangible asset                No major change
    Construction in process         No major change
    
    
    2) Main overseas assets condition
    
    ?Available □Not availableDetails of Formation Assets scale Location Operating Control measures for Proportion of
    
         assets          reason                                mode        safegsueacrudrinitgyasset       pEoasrintiinogntohveeCrsoemaspaanssye’tssninetmWahjeotrhiemrpthaeirrmeaernet
                                                                        This Company                               assets              risks
       HVaciineenddoasYAcquisition   500,554,860    Spain    Independent   pimarptiocritpaanttedseicnismioanksing
      MAartqriuoe,sSDLelof equity                             operation    tdChiFrroeOcutgfoohrrsbfaoinnadardnacpoiapfloints1,859,381              4.97%         No
                                                                        mThainsaCgeommepnatny
     Indomita Wine  Establishmen                                        pimarptiocritpaanttedseicnismioanksing
       CChoilme,pSanpyAtvbeyntjuorinet505,803,310    Chile     Inodpeepreantidoenntdthirroecutgohrsbaonadrdapopfoints       3,762,504              5.02%         No
                                                                        CmFanOagfoermfeinnatncial
        CFhraamncpssEsttabbylissohlmeen229,246,260   France    Independent   TaphpisoiCnotsmspenanioyrdirectly
      PartiSciApSationspropripetorshi                           operation    meoxpaeencraaugttiieovmneeatnontdconduct36,704              2.28%         No
                                                                        This Company
      EKstailtiekaPntyooLntdAocfqeuqisuiittiyon147,071,845  Australia   Inodpeepreantidoenntptihmarrpotioucrgitphaanbtteodsaericdnismoifoanksing-1,509,147              1.46%         No
         Other                                                          directors
       excopnladniatitoionnDafuterrincgonthdeucretipnogrtthpeeraimodo,rKtizilaitkioannooofnpEresmtaituemPtaytLthtdertiemaleizoefdatchqeuniseittipornofiintaocfcCoNrdYan5c5e0twhiotuhsaacncdofuonrtiintsgopwonlicpyr,otdhuecltoiosnswanadsmCNanYag1e.5mmeinllti,obnu.t
    
    
    3. Analysis of core competitiveness
    
    Whether the Company needs to follow the disclosure requirement of special business?
    
    No.
    
    Iinnduthsetryc,owmepbeetiltiieovne tphaatttetrhne CofomCphainnyesheaswfionlelowinidnugstardyv,acnotamgpesa:red with other participants in the
    
    “FNirsotblyle, tDheraCgoonm”paanndy h“AasFaIPw”elalr-eknCohwinnewseinfeambroaunsdtwraidthemmaorrkes tthhaant 1h2a0veyesatrrosnogf ihnifsltuoerync, e“Cahnadnggoyoud”,
    
    reputation.
    
    “Stehcroene-dlleyv,elt”hemaCrokmetpinagnynehtwasorsketsyustpema mnaatiinolnywciodmepmosaerdkeotfintgwonetetwamorskc. oTnhtaeinCinogmthpeanCyomfoprmansy’as
    
    ambairlikteyt.ing personnel and distributors, possessing a strong marketing ability and market exploitation
    
    Tsohlierd“lNy,atthioenCalo-lmevpealnyWoinwensR&strDonCgesnctieern”t,iftihcepCroowmepsasnayndgraaspprsodaudcvtanRc&edDwsyinsetemma.kiRneglytiencghnoonlotghye
    
    canondtrporlosdyusctetimon. processes and has fairly strong product innovation capacity and perfect quality
    
    dFeovuerltohplym, etnhte. TChoemspcaanlye aisndinthpeossstreuscstiuorne ooff ggrraappee bbaasseess ltohcaat ticnogulidn mreegeitontshethraetquarieremtheentms oosft
    
    sHueibtaebilaenfdorSghraoawnxini,ghwavineeb-amsaickailnlgy mgreatptehseinCoCmhipnaan,ys’uscdheamsaSnhdasnfdoorndge,vNelionpgmxiean,tX. injiang, Liaoning,
    
    Fvaifrtiheltyie,sthaendCcoamtepgaonryiesh.aMs oarecotmhapnle1te00hivgahr-ieentide,s mofedwiuinme-,ebnrdanadnyd, slopwar-kelnindgpwroidnuecetstc.a,scwoveellrinags
    
    hmigohre-etnhda,nm1e0diyuemar-senodf arnapdidlowde-veneldopgmraednets,, tchaenCmoemetptahneynheaesdsooccfudpiifefedrethnet cloenadsuinmgerpogsriotiuopns.inAfttheer
    
    domestic wine industry, which has certain comparative advantages in the future competition.
    
    iSnidxitrhelcyt,lythheoCldomthpeaCnyomhapsanayr’eslaetqivueitlyy ptherrofeucgthinccoenntrtiovlelinmgeschhaarneihsomld. eMrso.sTt hoefrCeoamrephanigyh’sceomnspisloteyneceys
    
    bcreetwateeevnaleume pfolorysehearbeehnoeldfietrss.and shareholder benefits, in favor of better motivating employees to
    
    Scoerveenmthalnya,gtehme eCnotmopf atnhye hCaosmepstaanbylishhaesdbaeefnlexmibalientaanindinegffiaciuennitteddecaisnidonp-rmagamkiantgicmweochrkansitsymle. Tanhde
    
    frelesxpiobnled taonmd aerfkfeict icehnatndgeecsi.sion-making mechanism, enabling the Company to more unhurriedly
    
    ECiogmhtphalnyy, thhaes Ccoommpplaentyedhtahse bparsoicdaulclytiocnomcapplaecteitdy tlhaeyoluatyoinutthoef wgloorbladlwipdreodmucatiinonwcinaep-apcriotyd.ucTinhge
    
    gcoloubnatlrihesig, hs-uqcuhalaistyCrhaiwnam, Fartearnicael ,reCshoiulerc, eSsp, acianpaitnadl, Ataulesntrtasliaandanaddvsoanocne,dapnrdodcuanctimonakteecbhentitqerueusseanodf
    
    technologies to provide consumers with diversified high quality products.
    
    tBhaissecdomonpaarbaotivvee aredavsaonntsa,gethienCthoemfopraensyeehaabslefomrmarekdetsctoromnpgetciotiroencionmthpeetfiutitvuerne.ess and will maintain
    
    IV. Management Discussion and Analysis
    
    D1.uSriunmgmthaerirzeaptoiortnperiod, influenced by the slowdown of domestic economic growth, the overall
    
    edxempearniedncoefdddoemcelisnteic awt ivnaeryiinndgusdtreygrweeass irnelastailveeslyvowluemake. aBnodthsadloems ersetvicenauned. Timhepocrotemdpwetiintieonhaidn
    
    cdoonmtiensutiocuswlyinienflmueanrkceest, suescphecaisalilnycrefoarseminidtdhlee-apnridc-elsowo-flervawel mwaitneersia, lswaansd vpearcykafgieinrcge.maDteureialtso,
    
    dunepdreercgiarteiaotneropfrfeisxseudrea.sFseatcsinagndquinitcereaalsoet ionffurenifgahvtoaranbdlelafbaocrtocros,sttsh,ethCeoCmopmanpyaninys’sispterdofiintatbaikliitnygwthaes
    
    monarhkiegthasqtuhaelictye,ntFeor,ciunssisotnedbtihge pdreovdeulocpt”me(tnhtestsrtartaetgeygyofo“fF“oTcuhsreoenFmoicdudslees-”a)ndw-hitihgohultevweal,vFeroicnugs,
    
    cTohnrotiunguhedprinotdeuncstifyininngoviantitoernn,almarenfaogremm, efnutrtihnenrovoapttiiomnizaendd pmroadrukcettinsgtruicntnuorevaatinodn,mthaerkeCtomlaypoanuyt.
    
    sthtraitvbedothtodpormomesotitcewpirnoeduacntdsiamlepsoartnedd awcihnieevsehdowceartlaairngeefdfeecctrseausnedwerhothlleybinacCkhgirnoaunmdarokfetth, eremaliazriknegt
    
    cthoempbaurseidneswsithinclaosmt eyeoafr CanNdYt2h5e5n8e.2t7pmroilfliitonattirnibuthtaeblfeirtsot thhaelfpyaereanrt wcoitmhpaandye’scrsehaasreehoofld9e.r5s5%of
    
    CNY603.4million in the first half year with a decrease of 5.1% compared with last year.
    
    During the report period, the Company mainly did following work:
    
    sFuircsctelys,sfuthlley Creo-melepcatneyd',s inBjeocatridngonfewDirfeocrctoerss,,oBptoimaridzinogf sStaufpfesrtvriuscotrusrea,nednhsaennciionrg ethxeecmutainvaegsemweernet
    
    lgeuvaerlanatnede dfoercitshieonC-ommakpianngy’asbsiulisttyaionfabthlee amndanhaegaelmtheyndtetveealmopamnednpt rionvtihdeinfgutuarree.liable organizational
    
    DSeucroinngdlyth,ethreep"oTrthrpeeeriFodo,cuasmeso"ngstrthateegthyreweacsosrteeabduislyineasdsvasnegcmedenatnsdoifnditoiaml ersetsiucltws inwee,rebraacnhdiyevaendd.
    
    ibmrapnodrstesducwhinaes, MtheOSCEoRm,pNanoyblceonDcreangtoranteadnditsZEmNaiInTHreWsoIuRrcLe;sthtoe ftowcousboranndthyebtrharnedesd“oKmOesYtiAc”wainnde
    
    a“nCdhaInNgDyuOSMuIpTeArioarcFhiievvee-sdtagroSopdecrieasluFltisn,ewBhriacnhdys”loawneddthdeowtwnotihmepCorotmedpawniyn’es bwrainnedsdKecilliiknaenoanodn
    
    achieved a small increase in brandy sales revenue.
    
    aTnhdirdolpyt,imthiezaotrigoann. izTahteiontrasntrsufcotrumreatoiofnsaflreosmsymstaenmagwemasebnat sdiceaallleyrscotompsleertveidngindteearlmerssowf aasdjuacsttimveelnyt
    
    prerpoomrtotpeedriaondd, tthhee cCoonmstpruacntyioenliomfi“nFatuendd, padojouls”tewdi,throdtaetaeldersanwdassuepnpelregmeteinctaeldlysdoemveeloopfetdh.eDpurorivnignctihael
    
    afingdhtminugncicaippaaclitsyaleosf ptheerssoanlneesl,tefaumrt.heTrhreataiounthaolirzizeeddthoepesraaletisonmwanaasgedmeeepnltysaydsvteamnceadn,dwenhhicahncfeudrththeer
    
    mpeorfboilrimzeadncteheapepnrtahiussailasmmodaendanidniwtiaotrikvefoocfuss,alweshipcehrspornonmeol.teBdessaidleess,ptehresoCnnoeml ptaonbyeimclporsoevr etdo tthhee
    
    tmeaamrketanadnd “cFliuenndts apnodolb”etwteirthserdveeadletresrmwinaaslsinatnednsciofinesdu,mwerhsi.cMh oarleloevveiart,etdhetchoensctorunctrtiaodnicotifonsaloesf
    
    insufficient market input.
    
    Fourthly, the Company actively coordinated controlling shareholders and other relevant parties.
    
    Aofftterardreempeaartkedusceomfeme uonf i"c张atio裕n"a(nCdhafnugllyaur)gaunmdenottahteirontr,atdheemCarokms,parenvyisreed-daentedrmiminperodvtehde Tprraodpeomrtaiornk
    
    cLliocseenlsyewCitohnttrhaecct oanntdrolelilnimgisnhaateredhodledfeercstsanind wthaes cfroenetlryacttr.anIsnfeardredditipoanr,t othfetrCadoemmpaarnkys acnodoppeartaetnetds
    
    afrnodmretdhuececdonrterloaltleidngtrasnhsaarechtioolndse.rs, which better guaranteed the integrity of the Company’s assets
    
    sFtirfitvhelyd, ttohereCdoumceparnaywomptaimteirziaeldctohsetslayanodutiomfprraowvemdapterroidaul cbtasqeusa,lsittyre.nDgtuhreinngedthqeuarleiptyormt apneargioedm, etnhte,
    
    lCaoidmopuatnymecdariurimedaonudt laonngo-vteerrmallrpawlanmniantgerifaolr bdaosmesesinticAaunsdtrafloiare,iCgnhirlaewanmdaFterarinacles.uIpnplayddbiatisoens,atnhde
    
    YCaonmtapia,nsytreinngcrtheaesneedd athelaargsesesnsummebnetrs ooff bhaigsihc-qmuaanliatygermawentm, parteorfiiat lanbdaskeesyinwoXriknjtioanthge, Nraiwngmxiaatearniadl
    
    abnadseso,thaenrd museeaninstetornasltrseenlgf-thexenampirnoadtiuocnt, qruanaldiotymmsaomniptolirningg, thanirdd-cpoanrttyroiln.sMpeocrtieoonv,efrl,igthhet iCnsopmecptainoyn
    
    rrea-wapmpraotvereidalsuanpdplipearclkisatg,ienlgim. Ainsattehdesuenqmueaalisfuieredssbuepcpolimeres eafnfdecctiovnet,intuhoeupslryodiumcptrqouvaeldittyheanqduarleitdyucoef
    
    raw material costs will be fundamentally improved.
    
    Scoixsttshlayn, dit owpaesrattoionstarlenrigstkhse,nafnidnainmcpiarlovmeanthaegeCmoemnpt aannyd’sauodpietrastuiopneravliseifofinc,iesntrciyv.eDtourrinedgutcheecraeppiotartl
    
    pinetreiroeds,t arfatteer arenpdeaftiendanccoinmgmcuonsitc.aItnionadadnidtionne,gothtieatCioonm, pthaenyCoumsepdanthyefuSrAthPersyresdteumcedtothmeobnaintokr laonadn
    
    aelxlpoecnatdeitcuarsehs aflnodwpianidreuasletismyest,esmtrioctflyfuinmdpsl,ewmheincthedactcweole-lrianteedmcaanpaigtaelmtuenrntoovfefri,niamncpiraolvreedvefunnudess aunsde
    
    eafrfeiacsiesnuccyhaansdtrheeduaucethdenfutincditsyoocfcufipnaatniocnia. lMreovreeonvueers, athned Cexopmepnadnityurienste, ncshiafinendelthienvaeundtiotrwy,ourknsoaflakbelye
    
    ipnrvoedsutcigtsa,tedadavnedrtpisuinnigshefdeeislleganaldacetcs,ownohmicihc efrfeescptoivnesliybiplirteyveonftedosuitggnoiifnicganpt eorpseornantieoln, alanridskst.imely
    
    qSuevaleintythalyn,dscsmienotoitfhicpdroisgpraetscsh,ofcairnevfeuslltymeonrtgapnriozjaetciotsn. Danudrincglostheecroeoppoerrtatpieorniogdu, aarlalnptereodjecthtse ugnodoedr
    
    construction of the Company progressed as planned and the project quality was excellent.
    
    Ejoiignhttvhelyn,tuitrewaansdtcooocopnertiantiuoeniwmipthlesmtreonntginfgortehiegninpteerenras.tiDonuarliinzgattihoenrsetpraotretgpyeraiondd, ainctiovredleyr tcoarrreyduocuet
    
    soupbesraidtiinagrycionstFsroafncaesiFnrgalnecws CinhearymapnsdPpalratiyciapastyinoenrsgiSsAticSetfofeecstt,atbhleisChoamjopianntyvuensetudrietscowmhoplalnyy-oLw&neMd
    
    HmOanLaDgeINmGenSt atnodgeotpheerratwiointhleAvedlvoinfithSeAF’srensuchbswidiinaerybuSsCineGssasrreigmduenGt. ai in France, promoting the
    
    CInomorpdaenrytowailclhfioecvues tohnethbeusfionlelosswoinbgjewctoivrkesinsethtebsyectohnedChoamlfpoafn2y0a1t9:the beginning of the year, the
    
    tFhierstdlye,vtehloepcmurernetntstmraatrekgeyt soiftu“aTtiohnreehaFs odceutes”rm. iTnheed tChoatmtphaenCyowmipllancyonmtiunsuteuncslawsseirfvyiinngglypprorodmucottse,
    
    ecoxmplporreastisoinngantdhemanrukmetbinegr woforkp.roducts, centralizing superior resources and focusing on market
    
    Secondly, considering that the main contradiction for future development lies in the market, the
    
    Cfuollm-tpimaneyswalielsl cpoenrstionnuneelfoacnudsinfugrtohnertheestacbolnissthruacntidonimofprtowvoe ttehaemssaloefs bsaycsktebmonetodiesxtrteibnudtomrsaraknedt
    
    bcorevaekrathgreo.uTghh.e ICnoamddpiatnioyn,wtihlle amlsaorkmetainkge idneneopvapteinoentrwatiilolnbeinsttoreknegythmenaerdkeatnsdanthdesctroimvemtuoniaccahtiioevnes
    
    smyesdteima wwiillll ablesoobpetimesitzaebdlisihnedoradnedr atofuilml-ptirmoveemtahrekemtinargkteetainmg wleivllebl.eAsetsyusptefmoraptircovbirdainndg smyasnteamgeicr
    
    mCoamrkpeatinnyg swoillul titoankse tofubllooasdtvbarnatnagdes bayndviritnuteegorfatteheotnolpinoeuatsdovuarnctianggecooums ppalnatifeosrmin tahnedinedxupsltoryre. Tthhee
    
    edxigpietarilemncaerkaentdinegnhmaondcee uinselrinseticwkiitnhesCsh. angyu to provide consumers with a more perfect consumer
    
    Tmhairrkdelty, ccoomntpientuitoiuosn. imWphroilveemsternicttliyn ipmropdleumctenqtuinaglityvairsiotuhse qmuoasltityfunmdaanmaegnetmalentht inmgeatosurweisn, tthhee
    
    rCeospmopnasnibyiliwtyillofewstianbelmishakearssyatstaelml aletivcelbsraanndd pwroinpeomseakcelerarsyrsetqeumir,emgievnets foufllsapllaaryy, taopptohientmmeanitn,
    
    seenltehcutsioians,mpraonmdosteinosneaonfdreesxpiot nfsoirbiwliitnyeamnadkperrosmaot tdeiftfheeresnigtnliefvicealsntinimoprrdoevretmoesnttiminuplartoeduwcitnqemuaalkiteyr.s'
    
    Fthoeurctohrley,ttoheacehsiteavbelisshumsteaninteodf aantdaleranptitdeadmevtehlaotpimsecnotm. TpahteibCleomwipthantyhewCilolmfopcaunsy'osndecvueltliovpamtinegnt6t0o
    
    ohipgthim-liezveeltalpernotveicnhceialol ngaenndersatlrivmeatnoamgearkse aunpdth6e0w0eaokuntsetsasnidnintaglecnittsy. Mmoarneaogveerrs, thceomCpormehpeannsyivweillyl
    
    feuffritchieerntopinticmeniztievepemrfeocrhmaanniscme sapwpirthaistahle mceotmhobdinsa, tieosntabolfishlonagn-dterimmpmroevcehavnaisrmiouasndflesxhibolret-tearnmd
    
    emnehcahnacneistmhe aasttrwacetliloansacnodmcpelnetmripeenttaalryfoarcdevatonttahgeeso,uatsntdanfduirntghetralsetnimts.ulate the Company’s vitality to
    
    bFeifttwhleye,ntphreodCuocmtiopnanayndwsilallerse,amsoankaeblfyullarursaengoef sthaleespproedaukcstieoansosnchinecdluuldei,ngdoMwide-lAl utthuemcnonFneestcitvioaln,
    
    Nimaptioorntaanl tDgauyaraanndteSepfroirngacFheiesvtiivnagl,ainnncuraelassealmesatrakregteintsg. efforts and promote product sales, providing
    
    Sraitxiothnlayl,lythearCraonmgepapnryocwurilelmsecnietnptirfoicgarlelsysmanakdefuplrloycucroemmpelnettepltahne fporrorcauwremmeantetriwalosrksuocfh garsapgerapraews,
    
    mloawteprriaicl,epfororvfiudtiunrge cdoerveelroapwmmenatt.erials with sufficient quantity, complete varieties, high quality and
    
    vInarsiohuosrt,rewfoermpremliemaisnuarreislyinjutdhgeeptahsat tyienarthsetasrteicnogntdohaaplpfeoafr,thalitshyoeuagrh, wthiethdothwencwuamrdulpartievsesuerfefeocntsthoef
    
    odoumt oefsttihcewtrionueghm,aarnkdetreisveinncureeamsianyga, ltshoebseagliens tsoiteunatteiornthoefgoruorwcthomtrpacakn.yTmheayCaocmtupaalnlyy gwrialdl ustarlilvyegtoo
    
    ycoeamr.plIenteadthdeitieosnta,balifsfehcetdedrebvyentuhee tdaroguebtleoffanvootrlaobwleerfatchtaonrsCoNfYth5e.3nbaitliloionnalactutthtiengbetgaixnensinagndoffethees
    
    mpoalyicbieesimanpdrotvheedccoonmtrpoallriendgwshitahrethheolsdaemr'es poefrfisoedt ooff ltarsatdyemeaarr.k use fee, the Company's profit level
    
    2. Analysis of main business
    
    Please refer to “1. Summarization” in “Management Discussion and Analysis”.
    
    Change in major financial data on year-on-year basis
    
    Unit: CNY
    
                             IntpheeriroedportIn thoefslaasmteyepaerriodMlesosre(%o)r                   Reason for changes
    Operating revenue        2,558,274,785    2,828,230,064     -9.55%Mainly owing to the year-on-year decrease in sales volume
    Operating costs            936,252,225      974,557,292     -3.93%Mainly owing to the year-on-year increase in the price of grapematerial
    Sales expenses             591,970,801      710,659,033    -16.70%Mainly owing to the year-on-year decrease in marketing expense andtrademarkuse fee
    Administration expense     155,552,312      157,964,882     -1.53%No major change
    Financial expense            8,789,583       13,085,942    -32.83%Mainly owing to the year-on-year decrease in interest expenditure
    Income tax expense        210,281,578      211,979,735     -0.80%No major change
    RDeesveealorcphm&entInvestment      2,706,811        2,127,006     27.26%Mainly owing to the increased investment in scientific research
    Net cash flow from
    operating activities         499,476,006      552,753,472     -9.64%aMnadinplryovoiwdiinnggltaobtohresdeervcriceeasein received cash from selling products
    Net cash flow from                                                 Mainly owing to the decrease in the cash paid for purchasing fixed
    investment activities       -114,534,608     -291,217,548     60.67%term deposit and the net cash paid by subsidiaries and other businessunits
    fNineatnccaisnhgfalocwtivfirtoiems-18,128,357       -6,350,537   -185.46%dMeapionsliytuosweidngfotroptlheedgyeeaorf-olonn-yge-aterrdmecloreaansein received fixed term
    Net increased amount of
    cash and cash              366,866,743      247,781,188     48.06%Mainly owing to the year-on-year decrease in the cash outflow ofinvestmentactivities
    equivalents
    
    
    Whether there is any major change for the Company’s profit structure or profit source during the report period
    
    □Available ?Not available
    
    There is no major change for the Company’s profit structure or profit source during the report period.
    
    Structure of main businesses Unit: CNY
    
                 Operating     Operating    Gross profit      Increase or decrease of         Increase or decrease of      Increase or decrease of gross
       Item                                              operating revenue over the     operating cost over the same     profit rate over the samerevenuecost        rate (%)
                                                         sameperiod of last year (%)       period of last year (%)          period of last year
    By Sector
    Manufactu
    ring of
    liquor and   2,558,274,785  936,252,225       63.40%                      -9.55%                       -3.93%                     -2.14%
    alcoholic
    beverages
    By Product
    Wine       1,928,554,268  680,125,496       64.73%                     -13.01%                       -9.65%                     -1.31%
    Brandy       563,451,068  229,703,175       59.23%                       3.33%                      18.50%                     -5.22%
    Tourism       42,604,382   12,307,699       71.11%                      -7.44%                      -12.47%                     1.66%
    Other         23,665,067   14,115,855       40.35%                      19.01%                        1.95%                     9.98%
    Total       2,558,274,785  936,252,225       63.40%                      -9.55%                       -3.93%                     -2.14%
    By Region
    Domestic
    business    2,330,780,056  791,113,867       66.06%                      -9.92%                       -2.36%                     -2.63%
    Overseas
    business      227,494,729  145,138,358       36.20%                      -5.50%                      -11.69%                     4.47%
    Total       2,558,274,785  936,252,225       63.40%                      -9.55%                       -3.93%                     -2.14%
    
    
    3. Analysis to non-main business
    
    □Available ?Not available
    
    4. Assets and liabilities situation
    
    1) Major changes in assets Unit: CNY
    
                                TAhmeoenudntofthisPrtreooptpaoloratrtspisoeenrtisoin(d%th)eTheAenmdooufntthesame pPetroroitopaldoarotsifsoelnatssint(%yteh)aerPropoorrdti(eo%cnr)einacsereaseExplancahtiaonngfeosrmajor
    MAcocnoeutnartyrefcuenidvsable1,188468,,613321,,199523113..3819%%1,624833,,041338,,409523  112..8971%%       -00..4980%%NNoommaajjoorrcchhaannggee
        yMeaairn-olyn-oyweainrgintcorethaesein
    Inventory                   2,606,781,436          19.48%     2,338,925,432             17.94%              1.54%wbuolrkkw-inin-peraotctehseseinncdluodfing
    Investment real estate           30,560,470           0.23%        17,877,379              0.14%              0.09%Nreopomrtapjoerricohdange
    iLnovnegst-mteremntequity                       -                -                 -                   -                   -No major change
        Mainlyowing to the
    Fixed assets                5,684,612,653          42.48%     5,457,575,677             41.86%              0.62%transfer of construction inprocessduring the report
        Mpeariiondlyowing to the
    Construction in process        789,872,373           5.90%     1,015,914,753              7.79%             -1.89%transfer of construction inprocessinto fixed assets
        dMuariinnlgythoewrinepgotrottpheeriod
    Short-term borrowing          678,170,667           5.07%       750,454,676              5.76%             -0.69%repayment of short-termborrowingduring the
    Long-term loan               165,949,250           1.24%       153,965,191              1.18%              0.06%Nreopomrtapjoerricohdange
    
    
    2) Measuring assets and liabilities at fair value
    
    □Available ?Not available
    
    3) Assets rights restricted situation up to the end of report period
    
    No
    
    5. Investment situation analysis
    
    1) Overall situation
    
    ?AAvmailoaubnlet of in□veNsotmt aevnatidlaubrlieng the report Amount of investment in the same period of Extent of change
    
                   2p1e0r,i0o0d0(,C00N0Y.0)0                 l2a1s0t,y9e3a1r,4(C00N.0Y0)                        0.44%
    
    
    2) Situation of major equity investments acquired during the report period
    
    □3)ASivtauialatibolne of o?nNgooitnagvmailaajbolre non-equity investments during the report period
    
    ?Available □Not available Unit: CNY
    
                                                            Accumulated                               Accumulated      Reasons
                            Whether                            actual                                   realized          for
                            itbelongs              Investment    investment             Process               incomeup       unreached
      Projectname   Investment    tofixed     Involved      amount      amountup    Capital      of      Estimated    totheend       planning       Disclosure     Disclosure
                   mode       assets      industry     duringthe     totheend     source     project     income       ofthe         schedule         date        index
                           investment              reportperiod   ofthereport                                  report          and
                                                              period                                    period      estimatedincome
     Construction    Pleasereferto
     projectof    Announcement
     Yantai                            Liquorand                                                                                            onResolutionof
     CInhtearnngaytuionalconSsterluf-cted  Yes      ablecvoehroalgiec110,000,000.00 1,486,114,1.0000 Ofwunnded   100%          -           -   Nodirectincome    2019.04.20   SethsseioSnevBeonathrd
     WineCity                           industry                                                                                                 of
     blendingand    Directors10th
     cooling    Meeting
     center    disclosedonthe
     Construction    websiteof
     projectof    CNINFO
     Yantai                            Liquorand                                                                                            (www.cninfo.co
     Changyu        Self-       Yes      alcoholic   40,000,000.00  953,200,000.0   Owned      100%          -           -   Nodirectincome    2019.04.20      m.cn)
     International    constructed              beverage                        0    fund                                                             (announcement
     WineCity                           industry                                                                                               number:
     bottling    2019-Temporar
     center    y06)
     Construction
     projectof
     Yantai                            Liquorand
     CInhtearnngaytiuonalconSsterluf-cted  Yes      ablecvoehroalgiec43,400,000.00  459,907,200.00  Ofwunnded   100%          -           -   Nodirectincome    2019.04.20
     WineCity                           industry
     logistics
     center
     Construction
     projectof                          Liquorand
     Changyu        Self-                alcoholic
     grape        constructed     Yes      beverage    6,000,000.00  122,974,800.00  Ofwunnded    85%          -           -     Nooptepruattiionnto2019.04.20
     andwine                            industry
     research
     institute
     Construction                        Liquorand
     projectof        Self-                alcoholic               128,820,000.0   Owned                    -           -     NotputintoYes0.00                           70%                                        2019.04.20
     treasurewine   constructed              beverage                        0    fund                                       operation
     chateau                             industry
     Construction      Self-       Yes     Liquorand         0.00  147,329,000.00  Owned      100%          -           -  Just   put   into  2019.04.20
     projectof      constructed              alcoholic                            fund                                   operation  and  no
     Koyabrandy                         beverage                                                                  income
     chateau                             industry
     OakBarrel                          Liquorand
     Procurement      Self-       Yes      alcoholic    7,000,000.00  13,432,000.00   Owned       30%          -           -   Nodirectincome   2019.04.20
     Project       constructed              beverage                            fund
                                       industry
     Construction
     projectof                          Liquorand
     industrial        Self-       Yes      alcoholic     600,000.00  38,450,000.00   Owned       70%          -           -    Notcompleted    2019.04.20
     production     constructed              beverage                            fund
     SAP                               industry
     information
     Procurement
     projectof                          Liquorand
     automatic        Self-                alcoholic                            Owned
     unibloc       constructed     Yes      beverage            0           0    fund       0.00%          -           -    Notcompleted    2019.04.20
     equipmentfor                         industry
     Yantai
     chateau
      Projectof
     “Constant
     temperature
     andhumidity”                       Liquorand
     systemin        Self-       Yes      alcoholic    3,000,000.00   3,000,000.00   Owned       80%          -           -    Notcompleted    2019.04.20
     underground    constructed              beverage                            fund
     cellarof                            industry
     Research&
     Development
     Center
     Construction
     projectof
     changyu                           Liquorand
     supplier         Self-                alcoholic                            Owned
     management    constructed     Yes      beverage          0.00         0.00    fund         0%          -           -    NotCompleted    2019.04.20
     platformand                         industry
     equipment
     management
     platform
     Total            —         —         —      210,000,000.00 3,353,227,1.0000   —          —       0.00         0.00        --            --          --
    
    
    4) Financial assets investment
    
    (1) Security investment
    
    □Available ?Not available
    
    There is no security investment for the Company during the report period.
    
    (2) Derivative investment
    
    □Available ?Not available
    
    There is no derivative investment for the Company during the report period.
    
    6. Sale of major assets and equities
    
    1) Sale of major assets
    
    □Available ?Not available
    
    There is no sale of major assets during the report period.
    
    2) Sale of major equity
    
    □Available ?Not available
    
    7. Analysis to the major holding and joint stock companies
    
    ?Available □Not available
    
    Situation of main subsidiaries as well as joint stock companies affecting over 10% of the Company’s net profit Unit: CNY
    
         Company       Company             Mainbusiness             Registered capital     Total      Netasset    Operation    Operation   NetProfit
           name          type                                                         assets                 revenue      profit
     CYCahAsaNtteeAlaCuIoC.,hLantdg.yuSubsidiary  Dwtoeiunvreieslmaonpdsmeresvnpitac,rekplirnogduwctiinoenasanwdelslalaessthoefUSD5million       240,8245,94 77,648,048   24,470,842   -2,182,761  -2,189,871
     Chateau   Changyu            Development, production and sales of  CNY642.75
     AFIP Global Wine  Subsidiary  brandy andwine                     million            686,6904,42640,778,175   90,339,526   17,401,737   12,711,958
     Co.,Ltd.
     Chateau   Liaoning                                              CNY59.6873
     Changyu Ice Wine  Subsidiary  Production oficewine                                  84,854,207  53,126,828   19,763,387   -1,049,804  -1,986,710million
     Co.,Ltd.
     Hacienda Y Vinedos            Production and management of wine and  EUR2.385732
     Marques Del Atrio,  Subsidiary                                                     500,554,860123,548,662  129,064,457     959,423   1,859,381otherliquors                        million
     SL
     Indomita     Wine            Production and management of wine and
     Company    Chile,  Subsidiary  other liquors                        USD47.19million    505,8031,30361,957,114   86,818,838    2,477,697   3,762,504
     SpA
     Kilikanoon   Estate  Subsidiary  Production and management of wine and  AUD6.529221      147,071,8   82,030,855   22,852,809   -2,587,400  -1,509,147
     PtyLtd                       other liquors                        million                  45
    
    
    Acquisition and disposal of subsidiaries during the report period
    
    ?Available □Not available
    
     Company name       Mode of Acquisition and disposal ofsubsidiariesduring the report period      Effect on overall production and management as well as performance
     L&M HOLDINGS    Establishment by joint venture           As a newly-established company, this company has very little influenceinoverall production and management as well as performance.
     Chateau Liversan     Joint venture partner uses Chateau       This chateau currently has very little influence in overall production andLiversanas contribution of capital       management as well as performance.
    
    
    Explanation for main holding and joint stock companies
    
    Dloussriensg, mthaeinrelypobretcpaeursieodth, eCthwaotecaoumCphaannigeys,uaCs apsrtoedluCcoti.o, nLtudn.iYtsA, sNolAdIthaneidr CprhoadteuacutsLtoiatohneinCgoCmhpaanngyy’us iIncteerWnailnesaCleos.,uLnittds. aint cthuerriendteorpnearlasteinttglement
    
    gperinceeradteetderbmyintheedibnytetrhnealCsoamlepsaunnyi,tswsheilclihngcopurloddnuocttstrtuolyexrteefrlneaclt cthuestpormofeirtsa,btihlietyproofdtuhcetstwporocdoumcepdanbiyest’hepsreodtwucotsc.oImf iptainnicelsudaeres tphreofpitraobfilte.
    
    cDounrdinugcttihnegrtehpeoarmt poerrtiiozadt,ioKniloikfapnroeomniuEmstaattethPetytiLmtde orefaalcizqeudistihtieonneitnparcocfiotrodfanCcNeYw5it5h0athcocuosuanntidngfoproitlsicoyw, tnheprloodssucwtiaosnCaNndYm1.a5nmaiglelimone.nt, but after
    
    8. Situation of structured subject controlled by the Company
    
    □Available ?Not available
    
    9. Forecast for the operating performance from January to September of 2019
    
    Cinaautlioosns aonrdtheexrpelawnialltiboenifnora tghreeaptrecdhiacntigoenctohmatptahreedcuwmituhlatthievesanmeteppreorfiiot dfroofmlatshteybeeagr.inning of the year to the end of next report period could be
    
    □Available ?Not available
    
    10. Risks faced with by the Company and response measures
    
    (G1r)aRpeisskasreinthpericCeofmlupcatunayt’isonmoaifnrarwawmmataetreirailasls. The grape’s yield and quality are affected to a
    
    cmeartjaeuinreexfatcentotrbsygrtehaetlnyaitnufrlaulefnaccetotrhsespurcohcuarsemdreonutgqhut,anwtiintyd,anradinp,rifcroesotfarnadwsmnoawte.riTahlsesaendfoardcde
    
    tlohwe eurnctheertafilnutcytutaotiothneriCskosmpoafngyr’aspeproqduualcittiyonanadndproicpeerbatyiomn.eaTnhseroeffosrtea,bitlhiezinCgomthpeanayreawiolfl
    
    oseflgf-rraupnegbraaspees.bases, strengthening the management of grape bases and optimizing the layout
    
    (2) Risks in uncertainty of market input and output
    
    dTeoveclooppemewnitt,h thinecrCeaosminpgalnyy fiwericlle mmaainrktaeitnccoemrtpaeintitimonarkanetd itnopumt.eeTthethepronpeeodrtsiofnorofmasarkleest
    
    eCxopmenpsaenyin’sthbeusoipneersastipoenrfroervmenanuceeistoalasogrheiagthe. xTtheentsaitnudattihoenreofminigphutt oacncduorutthpeutriwskiltlhaaftfepcatrttihael
    
    irnespeuatrcmhayandnotanraelaycshis,theenheaxnpceectamtioarnkse.t Tfhoerreecfaosrte, acthceuraCcoympanandy cwoniltlinusterenpgetrhfeecntinmgarktheet
    
    (in3p)uRt-isokustpiuntpervoadluucattitorannssypsotretmatitoonensure the market input to reach the expectations.
    
    TtrahnespCoortmatpioann,y’rsailpwraoydutcrtasnsaproertaftriaognileandanrdoasdoltdrantsopoarltlatioovne.rTthhee pweaokrldseamsoonstloyf sbaylesseias
    
    umsauraklelyt. iHnocwoeldvewr,ianttethr iasntdimies, cthloesedotmo etshteicstprarinnsgpofretsattiivoanl dwehpeanrtmtheenrtes ims aaygbreeaotvenreleodadiendtbhye
    
    tahdeditfiloonwtoofnaptueroaplleanadnhdumloagnisftiaccst,orcsasuuscinhgassesrnioowus, ischeoarntadgetraofffictraacncsipdoerntatstiaonndcsaopoacni,tyth. eIrne
    
    ifsacainpgosthseibiploittyentthiaatl irtisiks odfifmficisuslitntgo ssaalfeeslypeaankd steimaseolny. tTrahnesrpeofortrep,rtohdeuccotsmtpoatnhyewmiallrksetrti,vtehutos
    
    rseadleusc,erasuticohnarlilsyksarbryandgoiningg pwroedlluscatiloens faonrdecatrsatsnsapnodrtathtieoncornonuetcetsioanndbetrweaeseonnapbrloyduinctciroenasainndg
    
    o(4ff)-Rsiitsekisnivnenintovreystbmeefonrtefathueltscoming of peak season and so on.
    
    hAocmcoerdainndgatborothaed.pTrohgerainmvmeset,mtehnetCamomoupnant yofhYasanbtaasiicCahllayngcoyumpInledtuesdtrtihael Pparorkdu(icntioonthlearywouotrdast
    
    dYoamnteasiticChwainngeyumaIrnkteetr,nwathioicnhalmWayinleenCgtihtye)n itshelairngvee,stbmuetntthreerceovaerrey mpearniyod.unMceorrteaoinvteire,s thine
    
    diniftefigcrualttiofnoransodmmeainnadgievmideunatl opfroojevcetrssetaos oMbt&aiAn tphreojeecxtpsecatreeddiinffviecsutlmt eanntd initcommigehot walisnog btoe
    
    banedinsgcaiefnfeticftiecddbeycisviaornioouns ifnavcteosrtsm. eTnhteprreofojercet,stahnedCsotrmivpeantoyrwedilulcme aaknedsauvfofiicdieinnvtedsetmmeonntstrriastkiso.n
    
    V. Major issues
    
    1. Information for the Shareholders’ Meeting and Interim Shareholders’ Meeting held during the report period
    
    1) Information for the Shareholders’ Meeting during the report period
    
              Session             Meeting type    Participation ratio ofinvestorsConvening date    Disclosure date          Disclosure Index
                                                                                                        Ahtntpn:o/u/wnwcewm.ecnntinofno.Rcoesmo.lcuntionof
      2018AnnuMaleeSthinagreholders’shaArenhnouldalers’   58.85%          2019.05.17         2019.05.18    2018 Annual Shareholders’
                                    meeting                                                             Mnuemetbienrg:2(01A9n-nToeumnpcoermaernyt25)
                                                                                                        Ahtntpn:o/u/wnwcewm.ecnntinofno.Rcoesmo.lcuntionof
      FirstIMnteereitmingShinar2e0h1o9lders’shamIrneetheeotriilnmdgers’60.89%          2019.07.02         2019.07.03    MFieresttiInngteirnim20S1h9ar(ehAonldneorusn’cement
                                                                                                        number:2019-Temporary 37)
    
    
    2) Request for convening Interim Shareholders’ Meeting by priority shareholders owing recovered voting right
    
    □Available ?Not available
    
    2. Situation of profit distribution and capitalization of capital reserve into share capital during the report period
    
    □Available ?Not available
    
    The Company plans not to distribute cash dividends or give bonus shares or make capitalization of capital reserve into share capital.
    
    3co. mCommitmmietnmtepnatsrttihesathtahveeCimomplpemaneyn’tseadcdtuuarlincgonthtreorlleepros,rsthpaerreiohdoladnerds,hraevleatneodtpimarptlieems, eanctqeudirueprstoanthdethenedCoofmthpeanryepaonrdt poethrieordrelated
    
    ?Available □Not available
    
        Commitments      Commitment   Commitment     Commitment     Commitment     Commitmentpartytype            content            time           period            Implementation
    rCeofomrmmiattmioenntsatequity
    aCcoqmuimsiittimonenretspomratdoerin
    equity changereport
    rCeosmtrumcittumrienngtsatasset
    iCnoitmiamlpitumbelinctsofaftetrhinegor  YantaiChangyu Solvehorizontal  Non-horizontal             th
    refinancing             GroupCo.Ltd. competition      competition          May18 ,1997       Forever          Hasbeenperforming
                                                       TArcacdoermdianrgktLoicense
                                                       tCraodnetrmaacrtk,tuhseefeeof                                  ALiccceonrsdeinCgotnotrTarcat,dtehmeatrrakdemark
                                                       Ctrahdaenmgyaurkasnpdaoidthbeyr                     uYsaenfteaeiCanhnaunaglylyucGhraorugpedCboy.,
                         Yantai Changyu Cleartheuseof   tYhaisntCaoimChpaanngyytuo      th                        pLutdb.lischizaelltbraedmemaianrlkysuisnecdlutdoing
                          GroupCo.,Ltd. trademarkusefee GyeraoruipsCmoa.i,nLlytduesvederyMay18 ,1997       Forever     Cprhoadguncytsu.aEnxdcecpotn2tr0a1c3tutaol2017
                                                       fCohraandgvyeurtaisnidngother                        wduarsinngotwshtriicchtltyhepecrofmormmietdm,ent
                                                       tcroandtermacatrukaslpanroddtuhcets                             LYtadn.thaaisCbheaenngypuerGforromuipnCgoth.,e
                                                       bGyroYuapnCtaoi.C,Lhtadn.gyu                                commitment.
    cEoqmuimtyitimnceenntstive
    Canodmsmmiatmllesnhtasreahtomldiderdsle
    CofotmhemCitommenptanuynder
    toirmneolytimplementation   No
    Detailed explanationfor AuscecfoeredianngntuoaltlhyepTariaddbeymtahrekCLoicmepnasenyCtoonCtrhaacntg(hyeureGarfoteurpreshfearlrlebdetmoaasin“lythuesCedonbtyraCcth”a)n,CgyhuanGgryouupGtroouppubplriocmiziesetrsatdheamtathrkestraanddemark
    uspneimcipfilcemreeansotendsof      cuonndterrasctatunadlinpgroadnudctlse.aBdsuttoabporvoeb-lmemenatpiopneeadra‘nmceaidnulyri’nigstnhoetiamsppleecmifeicntnautimonbeprr,owcehsisc.hiseasytocausedivergencedueto different
    ncoexmtmwiotmrkepnltaansiwfell as  tFrraodmem2a0r1k3stionc2l0u1d7in,gCChahnagnyguyuGarnodupcocnotlrlaeccttepdroadtuoctatslowfitChNaYm4o2u0n,t8o8f3C,9N02Yt2r1a4d,e6m5a0r,7k9u0s.eTfheee,aomfowuhnitchha5s1b%eewnausseudsetdotpoupbulibcliizceize
    ccoommmpliettmedenintitshenot    Itrnad2e0m18araknsdin2c0l1u9d,inthgeCtrhaadnegmyaurkanudsecofneetraccotllpercotedducotfs2is01C7NaYn5d02,002158,1is8C1,NwYit1h5a5,b6a2l3a,n9c0e7o,fofCwNhYic1h645,16%25i,s60u9s.edto publicize
    commitment period     ttrraaddeemmaarrkkssiinncclluuddiinnggCChhaannggyyuuaannddccoonnttrraaccttpprroodduuccttsswisiCthNaYm1o2u,n2t2o5f,1C8N7,Yw7i9th,3a68b,a1l9an3c.eTohfeCamNoYu6n7t,1h4as3,b0e0e6n.usedtopublicize
                         SCiNncYe223011,736,8th,6e1a5c.cCumhaunlgayteudGbraolaunpcperoofmCisheasntghyauttGherofuopuru-syienagrttorapduebmliacrikzeustreafdeeemfarorkmsi2n0c1lu9dtiong20C2h2awngilylubeanudsecdonfotrraoctffpsreot.dIufctsis
                         iwnosuufldficbieencto,ltlheectsehdofrrtofamlltwheouyledarbewfiitlhleedxicnesosnoectcimurereinnc2e0.23.Ifthereisanyexcess,theexcessportionofthetrademarkusefee
                         IsfupCehravnisgeyuanGdruorugpeiCshnaontgaybuleGtoroiumpptloemfuelnfitllthitesacboomvme-imtmenetnitonaneddrceoqmumesittmChenantgoywuinGgrtooupvatroioruaisserefausnodnss,ththroeuCgohmbpaannkylowainllintigm,ely
                         Fasosreotsthsearledseatanidlse,qpuleitaysesarleefserettcoiAnnonroduenrctoemimenptleomneCnotmthmeictmomenmtiItsmsueenst.ofYantaiChangyuGroupCompanyLimiteddisclosedbythe
                         CompanyonApril4th, 2019.
    
    
    4. The appointment and dismissal of certified public accountants
    
    Whether the semi-annual report has been audited
    
    □ Yes ?No
    
    The semi-annual report has not been audited.
    
    5. Explanation from the board of directors and the board of supervisors for the “Non-standard Audit Report” during this report period
    
    □Available ?Not available
    
    6. Explanation from the board of directors for the “Non-standard Audit Report” of last year
    
    □Available ?Not available
    
    7. Issues related with bankruptcy reorganization
    
    □ThAerveaailraebnleo rela?teNdoitssauveasiloabf lbeankruptcy reorganization happened at the end of the report period.
    
    8. Litigation Issue
    
    Material litigation and arbitration
    
    □Available ?Not available
    
    There are no material litigation and arbitration during the report period.
    
    Other Litigation Issue
    
    □Available ?Not available
    
    9. Penalty and rectification
    
    ?Available ?Not available
    
         Name        Type                Reason             anIndvPeusntiigsahtmioenntConclusion   Disdcalotesure      Disclosure Index
     YChanantagiyu                                                                                      Rhtetcpt:i/f/iwcawtwio.ncnRinepfoo.rctoomf.cPnerson
     CPioo.n,eLetrd.WineOther        Yantai Changyu Group Co., Ltd  Other            -            2019.04.04   CInhCanhgayrugePsiuocnheearsWYiannetaCio.,
                                hcoasmmnitomtensttri“cAtlynnuafullftirllaeddemathrke                                      LAidtdm.inEitsctroantiDveecSiuspioenrvoisfion
     YChanantagiyuControlling   utrsaedefemeairskmsaiinnlcyluudsiendgtopCuhbalnicgiyzue                                     SMeecausruitrieessiRsesugeudlabtoyrCyhina
     LGtrdo.upCo.,    shareholder   andcontractualproducts”.         Other            -            2019.04.04   RCeogmumlaitsosrioynASuhthaonrdiotyng
                                                                                                        n(uAmnbneor:u2n0c1e9m-eTnetmporary05)
    
    
    The explanation of rectification situation
    
    D?urAinvgaitlhaeblpeeriod?, tNhoistCavoamilpaabnley, Yantai Changyu Group Co., Ltd. and other related person in charge have received Decision of Administrative
    
    aScucpoerrdviinsigotnoMtheearseuqruesireismsueendt.by China Securities Regulatory Commission Shandong Regulatory Authority, and they have made rectification
    
    10. Credit of the Company, its controlling shareholder and actual controller
    
    ?Available ?Not available
    
    11. Implementation of the Company’s equity inventive plan, employee stock ownership plan or other employee incentive measures
    
    T□hAerveaailraebnleo imp?leNmoetnatvaatiiolanbolef the Company’s equity inventive plan, employee stock ownership plan and other employee incentive measures
    
    during the report period.
    
    12. Major related transactions
    
    1) Related transactions in relation to routine operations
    
    ?Available □Not availableRelated Relationship Type Content Pricing Amount Proportion tArapnpsraocvtieodn eWxcheeetdhienrg Clearing mAarvkaeitlapbrliece Disclosure Disclosure
    
       party                                       principle     Price     (CNY‘0000)    insimilar               approvedtransactionsquota               form    ofsimilar     date      index(CNY‘0000)transactionquota           transactions
     YShaenntamiaCbyonthtreosllaemdePurchaseand   Pmuarncuhfaascetuarnidng   Determined
     PCaoc.,kLagtdin.gcpoarmenptanycmoannsuigfancmtuernitngocofnpsaicgknamgeinngtCalopnrtircaicntgubagyreement  7,497        10.44%     17,500       No       Cash    No        A20pthri,l2019  -
     Total                            materials      -        -          7,497        -          17,500       -        -       -          -        -
     Detailsinformationaboutthereturnoflargesales           No
     rAeclatuteadlptrearnfosarcmtiaonncsetohfatthweilelsoticmcuatreddutrointagltahmisoruenptofrotrpdeariiloyd
     bycategory(ifhave)                              No
     Rmeaarskoentrfeofrerthenecbeigpgriecred(ieffearpepnlciceabbeletw)eentransactionpriceand   Notavailable
    
    
    2) Related transactions in relation to acquisition and sales of assets or equity
    
    □ThAerveaailraebnleo rela?teNdottraanvsaaiclatibolnes in relation to acquisition or sales of assets or equity during
    
    the report period.
    
    3) Related transactions in relation to common foreign investment
    
    T□hAerveaailraebnleo rela?teNdottraanvsaaiclatibolnes in relation to common foreign investment during the report
    
    period.
    
    4) Related credit and debt dealings
    
    T?hAerveaialraeblneo rel?ateNdoctraevdaitilaanbdledebt dealings during the report period.
    
    5) Other major related transactions
    
    □Available ?Not available
    
    There are no other major related transactions during the report period.
    
    1re3l.aNteodnp-oapretireasting capital occupying of the Company by controlling shareholder and its
    
    □Available ?Not available
    
    iTtshererelaitsednopanrotine-sopdeurraintigngthcearpeiptaolrtocpceuripoydi.ng of the Company by controlling shareholder and
    
    14. Major contracts and execution condition
    
    1) Trusteeship, contract and lease issues
    
    (1) Trusteeship situation
    
    T□hAerveaiislanboletrust?eeNshoitpasviatuilaatbiolen during the report period.
    
    (2) Contract situation
    
    ?Available □Not available
    
    EFoxrpltahneaCtioomn pfoarncyo’sntcroancttrsaicttuaotpioernation situation during the report period, please refer to ‘‘23.
    
    Oretphoerrt poafytahbislerse’p’oirnt.Note 7 ‘‘Notes on consolidated financial statement’’ in the financial
    
    Pprroofjietcdt uwrihnogsethperorefiptoarntdpelorisosdbrought for the Company reach more than 10% of the total
    
    □Available ?Not available
    
    tThhaenre10a%re noof tchoenttoratacltpprroofjietcdtsurwinhgostheeprreopfiotratnpderlioosds.brought for the Company reach more
    
    (3) Lease situation
    
    ?Available □Not available
    
    Explanation for lease situation
    
    OshnarJeahnouladreyr 1Ysta,n2t0ai17C,htahnegCyuomGpraonuyp rCenoemwpeadnythLe iSmpiatecde.LTehaeseCAogmrepeamnyenlteawsietdh tthhee cspoanctreolwliintgh
    
    1re5n1t9p6e.9r4yesaqruaisreCmNeYte1r.s46lo4c5atminiglliaotnNwoi.th17a4rSenhtiahlupiyearoioRd ooafd5, Zyheaifrus DfroismtricJat,nYuaarnyta1istC, i2ty0.17Thtoe
    
    DofecYeamnbtaeir 3C1hsta,n2g0y2u1.POionnJeaenruaWryin1est,C2o0m17p,atnhye CLoimmipteadnyB’srasnudbyordSianlaetse DSaivleissi&onMreanrkeewtiendg tChoe.
    
    LSpimaciteedL,elaesaesinAggrteheemsepnatcewwitihthth4e25c5o2n.t8r3olsliqnugarsehmareetheorlsdleorcaYtianngtaaitCNhoa.n1gyJiuchGanroguRpoCado,mZphainfyu
    
    DDiissttrriicctt,, YYaannttaaii CCiittyy,anwdhtihche sapraeceallwuitnhd3e0r3t8hesqnuaamreemofetecrosntlrooclalitninggsahta5re6hDoladmera. RTohaedr,eZnht ifouf
    
    2ab0o1v7etospDaecceesmpberery3e1arst,is20C2N1.Y4.3935million with a rental period of 5 years from January 1st,
    
    OPanckJaugliyng1Cst,om20p1a7n,y tLhiims iCteodm. Apacncyordsiinggnetdo tahishocuosnet-rlaecats,insigncceoJnutlryac1t st,w2it0h17Y, athnitsaiCoSmhepnamnya
    
    ltheaesaendnpuraolpreernttyotfoCYNaYnt1a,i62S6h,e8n8m0.aTPhaisckcaognitnrgacCt eoxmppiraensyonLiJmuniteed30ftoh,r 2a02b2u.siness purpose with
    
    Pprroofjietcdt uwrihnogsethperorefiptoarntdpelorisosdbrought for the Company reach more than 10% of the total
    
    □Available ?Not available
    
    T10h%ereoafrtehenotolteaalsperopfriotjdecutrsinwghtohseerpeproofrittpaenrdioldo.ss brought for the Company reach more than
    
    2) Major guarantee
    
    ?Available □Not available
    
    (1) Guarantee situation
    
    Unit: CNY’0000
    
                                     ExternalguaranteeoftheCompanyanditssubsidiaries(excludingguaranteetosubsidiaries)
                      Disclosuredateofrelated               Actualdateof                                           Whetherornot    Whetherornot
     Guaranteeobjectname   announcementabout   Guaranteequota  occurrence(dateof  Actualguarantee  Guaranteetype   Guarantee       complete         belongto
                         guaranteequota                   agreement)        amount                    Period      implementation      related-party
        guarantee
    YantaiEconomicand
    Technological             2016.12.22         34,160       2016.12.21        34,160       Mortgage;      10years          No            No
    Development Zone                                                                  Pledge
    Management Council
    Total oftheexternalguaranteequotaapproved                              0 Totaloftheactualexternalguarantee                                        0
    during thereportperiod(A1)                                           amountduringthereportperiod(A2)
    Total oftheexternalguaranteequotaapprovedatthe                           Balanceoftheactualexternal
    end ofthereportperiod(A3)                                      34,160 guaranteeattheendofthereport                                       34,160
                                                                  period(A4)
                                                GuaranteesituationsbetweentheCompanyandsubsidiaries
                      Disclosuredateofrelated               Actualdateof                                           Whetherornot    Whetherornot
     Guaranteeobjectname   announcementabout   Guaranteequota  occurrence(dateof  Actualguarantee  Guaranteetype   Guarantee       complete         belongto
                         guaranteequota                    agreement)        amount                    Period      implementation     related-party
        guarantee
    Sales &Marketing
    Company ofYantai         2016.10.31         10,000       2016.11.05        10,000      Jointliability     2years          No            Yes
    Changyu PioneerWine                                                               assurance
    Company Limited
    YantaiChangyuPioneer      2016.12.22         11,984       2016.12.21        11,984       Mortgage;      10years          No            Yes
    Wine CompanyLimited                                                               Pledge
    YantaiChangyuWine                                                              Jointliability
    Research and             2016.12.22         72,176       2016.12.21        72,176       assurance;      10years          No            Yes
    Development Company                                                              Mortgage
    Limited
    Kilikanoon EstatePty        2017.12.12          7,100        2018.01.09         7,100      Jointliability     1year          No            Yes
    Ltd                                                                            assurance
    Total oftheapprovedguaranteequotatosubsidiaries                           Totaloftheactualguaranteeamount
    during thereportperiod(B1)                                          0 forsubsidiariesduringthereport                                           0
                                                                  period (B2)
    Total oftheapprovedguaranteequotatosubsidiaries                           Balanceoftheactualguaranteefor
    at theendofthereportperiod(B3)                                  89,276 subsidiariesattheendofthereport                                      89,276
                                                                  period (B4)
                                                      Guaranteesituationsbetweensubsidiaries
                      Disclosuredateofrelated               Actualdateof                                           Whetherornot    Whetherornot
     Guaranteeobjectname   announcementabout   Guaranteequota  occurrence(dateof  Actualguarantee  Guaranteetype   Guarantee       complete         belongto
                         guaranteequota                    agreement)        amount                    Period      implementation     related-party
        guarantee
    Hacienda YVinedos
    Marques  Del  Atrio.  2016.04.29           3,502        2015.10.08        3,502          Mortgage     Long-term     No             No
    SL
    Indomita  Wine
    Company  Chile,     2018.04.23           1,986        2018.04.20        1,986          Mortgage     Long-term     No             No
    SpA
    Total oftheapprovedguaranteequotato                               5,976 Totaloftheactualguaranteeamount                                        0
                                                                  for subsidiariesduringthereport
    subsidiaries duringthereportperiod(C1)                                   period(C2)
    Total oftheapprovedguaranteequotato                                   Balanceoftheactualguaranteefor
    subsidiaries attheendofthereportperiod(C3)                          11,464subsidiariesbytheendofthereport                                      5,488
                                                                  period (C4)
    Total guaranteeamount oftheCompany(Totalofabovethreemajoritems)
    Total oftheapprovedguaranteequotaduringthe                              Totaloftheactualguaranteeamount
    report period(A1+B1+C1)                                      5,976 duringthereportperiod                                                0
                                                                  (A2+B2+C2)
    Total oftheapprovedguaranteequotaattheendof                             Balanceoftheactualguaranteeby
    the reportperiod(A3+B3+C3)                                  134,900 theendofthereportperiod                                          128,924
                                                                  (A4+B4+C4)
    The proportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’s                                                             13.17%
    net asset
    Among :
    Balance ofguaranteeforshareholders,actualcontrollersandtheirrelatedparties(D)                                                                     0
    Balance ofdirectorindirectdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratiois                                                              0
    more than70%(E)
    Amount ofthepartintotalguaranteeamountthatexceed50%ofnetassets(F)                                                                         0
    Total amountoftheabove-mentionedthreeitems(D+E+F)                                                                                      0
    Explanation forundueguaranteesthatmightbearjointandseveralresponsibilitiesforclearingthe   No
    debts duringthereportperiod(ifhave)
    Explanation forviolatingdueprocesstoprovideexternalguarantee(ifhave)                 No
    
    
    Explanation on specific situations of adapting guarantee by complex methods
    
    No.
    
    (2) Illegal external guarantee
    
    T□hAerveaiislanboleilleg?alNguoat raavnatieleabdluering the report period.
    
    3) Other major contracts
    
    T□hAerveaailraebnleo oth?erNimotpaovratailnatbcleontracts during the report period.
    
    15. Situation for social responsibility
    
    1) Major environmental situation
    
    Whether or not the listed company and its subsidiaries belong to key pollutant discharging units
    
    stipulated by the state environmental protection department.
    
    Not applicable.
    
    No
    
    2) Situation for carrying out social responsibility of targeted poverty alleviation
    
    (1) Targeted poverty alleviation plan
    
    The Company has reached the mutual agreement with the government of Zhuqiao Town and the
    
    village committee of Dalangya Village to establish a cooperative specialized for grape. 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 mu 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 semi-annual targeted poverty alleviation
    
    The Company intends to help farmers grow their income by establishing vineyards together with
    
    farmers.
    
    (3) Effectiveness of targeted poverty alleviation
    
    The Company has established vineyards with farmers as planned, which is progressing smoothly
    
    now.
    
    (4) Subsequent plan for targeted poverty alleviation
    
    No
    
    16. Explanation for other major issues
    
    □ThAerveaailraebnleo oth?erNmoatjaovraiislsaubeles need to be explained during the report period.
    
    17. Major issues of the Company’s subsidiaries
    
    □Available ?Not available
    
    VI. Changes in Shares and the Shareholders’ Situation
    
    1. Changes in shares
    
    1) Changes in shares
    
    Unit: share
    
                        Amountbeforethischange                    Changeatthistime  (+,-)                     Amountafterthischange
                                                                            Transfer
                         Amount    Percentage%   Issuingnew   Distribute    capitalsharebonusshare  reserveto     others     Subtotal      Amount    Percentage%
                                                                          sharecapital
    1. Unrestrictedshares   685,464,000         100%                                                               685,464,000        100%
    (1) Ashares          453,460,800       66.15%                                                               453,460,800       66.15%
    (2) Bshares          232,003,200       33.85%                                                               232,003,200       33.85%
    2. Totalshares        685,464,000         100%                                                               685,464,000        100%
    
    
    Reason of changes in shares
    
    □Available ?Not available
    
    Approval of changes in shares
    
    □Available ?Not available
    
    Ownership transfer of changes in shares
    
    I□mAplveamileanbtlaetion?prNogorteasvsaoilfasbhleare buy-back
    
    □Available ?Not available
    
    Implementation progress of reducing repurchased shares by the way of centralized bidding
    
    T□hAe vinafillaubelnece o?f cNhaont gaevsaiilnabslheares on financial indicators in the most recent year and the most recent report period, such as basic earnings per
    
    share, diluted earnings per share and net asset per share attributable to the Company’s common shareholders and so on
    
    □Available ?Not available
    
    Other contents that the Company thinks necessary or securities regulatory departments ask to disclose.
    
    □Available ?Not available
    
    2) Changes in restricted shares
    
    □Available ?Not available
    
    2. Securities issuance and listing situation
    
    □Available ?Not available
    
    3. Situation for the number of shareholders and shareholdings of the Company
    
    Unit:share
    
    Total common shareholders at the                      42,531 Total number of preferred shareholder recovering voting                    0
    end of report period                                         power at the end of report period (if have) (refer to note 8)
                              Shareholdersholding more than 5% or shareholdings of the top 10 common shareholders
                                                                                 Changes    Number of  Number of   Pledged or frozen
     Nameof Shareholder      Cshhaarreahcoteldreorf     SharreahtoioldinghthCeelodmreapmtotohrntepseehnradiroeodfredpuorritnpgetrhioedrceosmtrimctoenduncroemstmricotnedSsthaaturesAmount
                                                                                               share       share
    YANTAI            Domestic             50.40%       345,473,856       0             0          345,473,856
    CHANGYU GROUP non-state-owned legal
    CO. LTD.           person
    GAOLING          Foreign legal person    3.08%         21,090,219        0             0          21,090,219
    FUND,L.P.
    CHINA
    SECURITIES        State-owned legalperson2.25%         15,440,794        0             0          15,440,794
    FINANCE CORP
    BBH BOS S/A
    FIDELITY FD -     Foreign legal person    2.22%         15,241,826        0             0          15,241,826
    CHINA FOCUS FD
    SHENWAN
    HONGYUAN        Foreign legal person    1.28%         8,798,233         450570        0          8,798,233
    SECURITIES(HON
    G KONG) LIMITED
    FIDELITY
    PURITAN TRUST:
    FIDELITY SERIES  Foreign legal person    0.93%         6,350,762         250000        0          6,350,762
    INTRINSIC
    OPPORTUNITIES
    FUND
    GUOTAI JUNAN
    SECURITIES(HON  Foreign legal person    0.76%         5,229,016         185509        0          5,229,016
    GKONG) LIMITED
    CENTRAL HUIJIN
    ASSET             State-owned legal      0.69%         4,761,200         0             0          4,761,200
    MANAGEMENT    person
    LTD.
    VANGUARD
    EMERGING         Foreign legal person    0.55%         3,788,487         0             0          3,788,487
    MARKETS STOCK
    INDEX FUND
    FIDELITY CHINA
    SPECIAL           Foreign legal person    0.55%         3,779,202         0             0          3,779,202
    SITUATIONS PLC
    Situation of Strategic investors or general legal person
    becoming the top 10 shareholders owing to placing of new No
    shares (if have)(see note 3)
    Explanation for above shareholders’ associated           Among the top 10 shareholders, Yantai Changyu Group Company Limited has no
    relationship and concerted action                       associated relationship or concerted action relationship with the other 9 circulating
                                                        shareholders, and the relationship among the other shareholders is unknown.
                                      Shareholdings of top 10 common shareholders with unrestricted shares
                          Name of Shareholders                       Number of unrestricted shares held at           Type of share
                                                                         theend of the report period        Type of share       Amount
    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
    SHENWAN HONGYUAN SECURITIES(HONG KONG) LIMITED                            8,798,233 B                      8,798,233
    FIDELITY PURITAN TRUST: FIDELITY SERIES INTRINSIC                                6,350,762 B                      6,350,762
    OPPORTUNITIES FUND
    GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED                                    5,229,016 B                      5,229,016
    CENTRAL HUIJIN ASSET MANAGEMENT LTD.                                          4,761,200 A                     4,761,200
    VANGUARD EMERGING MARKETS STOCK INDEX FUND                                3,788,487 B                      3,788,487
    FIDELITY CHINA SPECIAL SITUATIONS PLC                                            3,779,202 B                      3,779,202
    Explanation for associated relationship and concerted action among top Among the top 10 shareholders, Yantai Changyu Group Company Limited
    10 common shareholders with unrestricted shares and between top 10   has no associated relationship or concerted action relationship with the other
    common shareholders with unrestricted shares and top 10 common     9 circulating shareholders, and the relationship among the other
    shareholders                                                     shareholders is unknown.
    Explanation for top 10 common shareholders who are involved in      The top 10 shareholders are not involved in f securities margin trading
    securities margin trading business (if have)(see note 4)                business.
    
    
    Whether or not the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction
    
    during the report period
    
    □Yes ?No
    
    There is no agreed repurchase transaction taken by the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares
    
    during the report period.
    
    4. Changes in controlling shareholders or actual controllers
    
    Changes in the controlling shareholders during the report period
    
    □Available ?Not available
    
    There is no any change in the controlling shareholders during the report period.
    
    Changes in the actual controllers during the report period
    
    □Available ?Not available
    
    There is no any change in the actual controllers during the report period.
    
    VII. Related Situation of Preferred Shares
    
    □Available ?Not available
    
    There are no preferred shares during the report period.
    
    VIII. Situation for Directors, Supervisors, Senior Executives
    
    1. Changes in shareholdings of directors, supervisors and senior executives
    
    □Available ?Not available
    
    There is no change in shareholdings of directors, supervisors and senior executives during the report
    
    period. For details, please refer to 2018 Annual Report
    
    2. Personnel changes in the Company's directors, supervisors and senior executives
    
    ?Available □Not available
    
         Name        Position             Type               Date             Reason
     Sun Liqiang    Director      Leaving the post owing     2019.05.17   Retirement
                                 to expiration of tenure
     Qu Weimin     Director      Leaving the post owing     2019.05.17   Retirement
                                 to expiration of tenure
     Zhang Ming    Director      Leaving the post owing     2019.05.17   Expiration of tenure
                                 to expiration of tenure                   and job change
     Antonio        Director      Leaving the post owing     2019.05.17   Expiration of tenure
     Appignani                   to expiration of tenure
     Wang Shigang  Independent  Leaving the post owing     2019.05.17   Expiration of tenure
                    director      to expiration of tenure
     Liu Yan        Independent  Leaving the post owing     2019.05.17   Expiration of tenure
                    director      to expiration of tenure
                                                                        Beingelected as
     Chen Dianxin   Director      Elected                   2019.05.17   director when
                                                                        reelectingnew session
                                                                        Boardof Directors
                                                                        Beingelected as
     Enrico Sivieri   Director      Elected                   2019.05.17   director when
                                                                        reelectingnew session
                                                                        Boardof Directors
                                                                        Beingelected as
     Sun Jian        Director      Elected                   2019.05.17   director when
                                                                        reelectingnew session
                                                                        Boardof Directors
                                                                        Beingelected as
     Li Jiming       Director      Elected                   2019.05.17   director when
                                                                        reelectingnew session
                                                                        Boardof Directors
                                                                        Beingelected as
     Duan          Independent                                         independent director
     Changqing      director      Elected                   2019.05.17   when reelecting new
                                                                        sessionBoard of
                                                                        Directors
                                                                        Beingelected as
                    Independent                                         independent director
     Liu Huirong    director      Elected                   2019.05.17   when reelecting new
                                                                        sessionBoard of
                                                                        Directors
                    Secretary of  Leaving the post owing
     Qu Weimin     the Board of  to expiration of tenure      2019.05.28   Retirement
                    Directors
     Li Jiming       Chief        Leaving the post owing     2019.05.28   Expiration of tenure
                    engineer      to expiration of tenure
                    Deputy                                             Being appointed by
     Li Jiming       general      Appointed                2019.05.28   Board of Directors
                    manager
                    Chief        Leaving the post owing
     Jiang Jianxun   Financial     to expiration of tenure      2019.05.28   Expiration of tenure
                    Officer
                    Deputy
                    general
     Jiang Jianxun   manager  &  Appointed                2019.05.28   Being appointed by
                    Secretary of                                         Board of Directors
                    the Board of
                    Directors
                                                                        Resigningfrom the
     Guo Guoqing   Independent  Leaving the post           2019.07.02   post of independent
                    director                                             director on his own
                                                                        initiative
     Liu Qinglin     Independent  Elected                   2019.07.02   Being elected as
                    director                                             independent director
    
    
    IX. Related Situation of Corporation Bonds
    
    sWtohcektheexrcohranngoet, tbhuetrenoatredutheeoCnothmepiasnsuya’sncceordpaoteraatipopnrobvoenddisnisthsueesdemini-paunbnluiaclarnedpolritstoerdfianilitnhge
    
    Ntoop.ay in full on the due date
    
    X. Financial Report
    
    1W. hAeuthdeirt trheeposermt i-annual report has been audited
    
    T□hYeessem√ iN-aonnual report of the Company has not been audited.
    
    2. Financial statement
    
    The unit in the statements of the financial annotations is RMBYuan.
    
    2.1 Consolidated balance sheet
    
    Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2019 Unit: Yuan
    
                           Item                         Note    June30,2019     December31,2018
    Current assets:
    Monetary fund                                         7.1       1,848,632,953    1,475,700,477
    Settlement reserves
    Lending funds
    Tradable financialassets
    rFeicnoarndceiadlianstsoetthsemceuarsruenretdpraotftihtseafnaidrlvoaslsueesandthevariationofwhichis
    Derivative financialassets
    Bills receivable                                         7.2                     288,667,988
    Accounts receivable                                      7.3        186,131,192     242,153,083
    Receivables financing                                    7.4        372,281,872
    Advance payment                                       7.5          3,490,928       4,219,949
    Premium receivable
    Reinsurance accountsreceivable
    Receivable reservesforreinsurancecontract
    Other receivables                                       7.6         28,618,983      22,636,086
    Including: Interestreceivable                                           2,099,109       1,332,681
            Dividendsreceivable
    Redemptory monetarycapitalforsale
    Inventories                                            7.7       2,606,781,436    2,724,591,457
    Contract assets
    Assets heldforsale
    Non-current assetsduewithinoneyear
    Other currentassets                                      7.8        300,418,901     258,676,396
                           Item                         Note    June30,2019     December31,2018
    Totalcurrentassets                                              5,346,356,265    5,016,645,436
    Non-current assets:
    Offering loansandimprest
    Debt investments
    Available-for-sale financialassets                                                       467,251
    Other debtinvestments
    Held-to-maturity investments
    Long-term receivables
    Long-term equityinvestments
    Other investmentsinequityinstruments
    Other non-currentfinancialassets                             7.9           515,922
    Investment realestate                                    7.10        30,560,470      31,572,489
    Fixed assets                                           7.11      5,684,612,653    5,749,731,667
    Construction inprogress                                  7.12        789,872,373     759,296,591
    Productive biologicalassets                                7.13        207,613,439     209,266,373
    Oil-and-gas assets
    Right-of-use assets
    Intangible assets                                        7.14        647,158,886     655,473,459
    Development expenditure
    Goodwill                                             7.15        165,199,111     165,199,111
    Long-term prepaidexpenses                                7.16        276,557,711     244,640,416
    Deferred incometaxassets                                 7.17        234,646,603     285,436,259
    Other non-currentassets
    Total non-currentassets                                            8,036,737,168    8,101,083,616
    Totalassets                                                   13,383,093,433   13,117,729,052
    Current liabilities:
    Short-term loans                                        7.18        678,170,667     688,002,410
    Borrowings fromtheCentralBank
    Loans fromotherbanksandotherfinancialinstitutions
    Tradable financialliabilities
    iFsinreacnocridaledliainbtiolittiheesmcueraresuntrepdroaftittsheanfadirlovsasleuseandthevariationofwhich
    Derivative financialliabilities
    Bills payable
    Accounts payable                                       7.19        539,459,878     713,572,881
    Advances fromcustomers                                 7.20        177,549,080     226,075,244
    Financial assetssoldforrepurchase
    Deposits fromcustomersandinterbank
    Receivings fromvicariouslytradedsecurities
    Receivings fromvicariouslysoldsecurities
    Employee remunerationspayable                             7.21        177,466,368     212,304,217
    Taxes andduespayable                                   7.22        109,000,802     128,912,790
    Other payables                                         7.23        977,667,007     608,479,890
    Including: Interestpayable                                             2,669,667        712,826
            Dividendspayable                                         412,646,375
                           Item                         Note    June30,2019     December31,2018
    Handling chargesandcommissionspayable
    Dividend payableforreinsurance
    Contract liabilities
    Liabilities heldforsale
    Non-current liabilitiesduewithinoneyear                       7.24        180,362,314     152,940,788
    Other currentliabilities                                   7.25        14,545,254      15,860,254
    Total currentliabilities                                             2,854,221,370    2,746,148,474
    Non-current liabilities:
    Reserves forinsurancecontracts
    Long-term borrowings                                    7.26        165,949,250     156,480,662
    Bonds payable
    Including: Preferredstock
            Perpetualbonds
    Lease liabilities
    Long-term accountspayable                                7.27        201,000,000     225,000,000
    Long-term employeeremunerationspayable
    Estimated liabilities
    Deferred income                                       7.28        64,050,895      70,367,039
    Deferred incometaxliabilities                               7.17        18,629,612      22,010,647
    Other non-currentliabilities                                7.29         7,159,222       7,234,853
    Total non-currentliabilities                                           456,788,979     481,093,201
    Totalliabilities                                                 3,311,010,349    3,227,241,675
    Owner’s equity:
    Capital stock                                          7.30        685,464,000     685,464,000
    Other equityinstruments
    Including: Preferredstock
            Perpetualbonds
    Capital surplus                                         7.31        565,955,441     565,955,441
    Minus: Treasurystock
    Other comprehensiveincome                               7.32           -95,344       2,965,377
    Special reserves
    Surplus reserves                                        7.33        342,732,000     342,732,000
    General riskpreparation
    Undistributed profit                                     7.34      8,197,828,994    8,008,982,547
    Total owner’sequitiesattributabletotheparentcompany                      9,791,885,091    9,606,099,365
    Minority equity                                                   280,197,993     284,388,012
    Total owner’sequities                                            10,072,083,084    9,890,487,377
    Total liabilitiesandowner’sequities                                   13,383,093,433   13,117,729,052
    
    
    LJieagnaxlunRepresentative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Jiang
    
    2.2 Balance sheet of the parent company
    
    Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
    
                           Item                        Note    June30,2019   December31,2018
    Current assets:
    Monetary fund                                                  1,083,333,310     624,588,809
    Tradable financialassets
    rFeicnoarndceiadlianstsoetthsemceuarsruenretdpraotftihtseafnaidrlvoaslsueesandthevariationofwhichis
    Derivative financialassets
    Bills receivable                                                                 39,885,254
    Accounts receivable                                     15.1                       1,447,973
    Receivables financing                                               56,047,969
    Advance payment                                                    427,816           227
    Other receivables                                       15.2        526,593,613    1,025,643,356
    Including: Interestreceivable                                             277,785        254,088
            Dividendsreceivable                                         4,103,925     500,000,000
    Inventories                                                      505,479,473     385,154,740
    Contract assets
    Assets heldforsale
    Non-current assetsduewithinoneyear
    Other currentassets                                                 35,992,255      24,704,844
    Totalcurrentassets                                              2,207,874,436    2,101,425,203
    Non-current assets:
    Debt investments
    Available-for-sale financialassets
    Other debtinvestments
    Held-to-maturity investments
    Long-term receivables
    Long-term equityinvestments                               15.3       7,420,803,069    7,420,803,069
    Other investmentsinequityinstruments
    Other non-currentfinancialassets
    Investment realestate                                               30,560,470      31,572,489
    Fixed assets                                                     260,448,515     265,311,274
    Construction inprogress                                              7,319,082       6,311,701
    Productive biologicalassets                                           121,158,460     125,002,793
    Oil andgasassets
    Right-of-use assets
    Intangible assets                                                   66,054,490      67,244,066
    Development expenditure
    Goodwill
    Long-term prepaidexpenses
    Deferred incometaxassets                                            20,699,273      24,194,967
    Other non-currentassets                                             985,700,000     972,700,000
    Total non-currentassets                                            8,912,743,359    8,913,140,359
    Totalassets                                                   11,120,617,795   11,014,565,562
    Current liabilities:
    Short-term loans                                                  150,000,000     150,000,000
    Tradable financialliabilities
    Financial liabilitiesmeasuredatthefairvalueandthevariationofwhich
                           Item                        Note    June30,2019   December31,2018
    is recordedintothecurrentprofitsandlosses
    Derivative financialliabilities
    Bills payable
    Accounts payable                                                 106,793,658     132,704,304
    Advances fromcustomers
    Contract liabilities
    Employee remunerations                                             59,598,048      72,345,179
    Taxes andduespayable                                               3,749,762      13,111,431
    Other payables                                                   913,805,782     607,974,519
    Including: Interestpayable                                              163,125        181,250
            Dividendspayable                                         411,278,400
    Liabilities heldforsale
    Non-current liabilitiesduewithinoneyear
    Other currentliabilities                                               3,433,054       3,433,054
    Total currentliabilities                                             1,237,380,304     979,568,487
    Non-current liabilities:
    Long-term borrowings
    Bonds payable
    Including: Preferredstock
            Perpetualbonds
    Lease liabilities
    Long-term accountspayable
    Long-term employeeremunerationpayable
    Estimated liabilities
    Deferred income                                                   7,459,789       8,910,918
    Deferred incometaxliabilities
    Other non-currentliabilities                                            2,951,042       2,710,575
    Total non-currentliabilities                                            10,410,831      11,621,493
    Totalliabilities                                                 1,247,791,135     991,189,980
    Owner’s equity:
    Capital stock                                                    685,464,000     685,464,000
    Other equityinstruments
    Including: Preferredstock
            Perpetualbonds
    Capital surplus                                                   557,222,454     557,222,454
    Minus: Treasurystock
    Other comprehensiveincome
    Special reserves
    Surplus reserves                                                  342,732,000     342,732,000
    Undistributed profit                                               8,287,408,206    8,437,957,128
    Total owner’sequities                                             9,872,826,660   10,023,375,582
    Total liabilitiesandowner’sequities                                   11,120,617,795   11,014,565,562
    
    
    LJieagnaxluRnepresentative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Jiang
    
    2.3 Consolidated profit statement
    
    Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
    
                          Item                      Note  Sumofcurrentperiod  Sumofpriorperiod
    1. Totaloperatingincome                                        2,558,274,785      2,828,230,064
    Including: Operatingincome                             7.35        2,558,274,785      2,828,230,064
            Interestincome
            Earnedpremium
            Handlingfeeandcommissionincome
    2. Totaloperatingcosts                                          1,818,822,580      2,023,670,406
    Including: Operatingcosts                              7.35         936,252,225       974,557,292
            Interest expenditure
            Handling feesandcommissionexpenditure
            Premium rebate
            Net amountofindemnityexpenditure
               iNnesturaanmcoeucnotntroafctthewithdrawn reserve fund for
            Policy bonuspayment
            Amortized reinsuranceexpenditures
            Taxes andsurcharges                         7.36         123,550,848       165,276,251
            Selling expenses                            7.37         591,970,801       710,659,033
            Administrative expenses                       7.38         155,552,312       157,964,882
            Research anddevelopmentexpenses               7.39          2,706,811         2,127,006
            Financial expenses                           7.40          8,789,583        13,085,942
            Including: Interestexpenses                                  9,812,560        18,739,528
                    Interestincome                                   4,606,417         7,245,870
        Plus:Otherprofit                                 7.41          64,211,892        37,982,878
           Investmentprofit(lossislistedwith"-")
           Including:vIennvtuersetmentprofitforjoint-runbusinessandjoint
                 tFoinbaencrieacloagssneiztsedmeaassuinrecdomatea(mloosrstiziesdlicsotesdtcweaisthe
                 "-")
           Exchangeincome(lossislistedwith"-")
           Netexposurehedgeincome(lossislistedwith"-")
           Incomefromfairvaluechanges(lossislistedwith"-")
           Creditimpairmentloss(lossislistedwith"-")           7.42           -765,935
           Assetimpairmentloss(lossislistedwith"-")           7.43          6,148,729         4,730,948
           Incomefromassetdisposal(lossislistedwith"-")        7.44             1,138           93,958
    3. Operatingprofit(lossislistedwith"-")                               809,048,029       847,367,442
        Plus:Non-operatingincome                          7.45          3,575,914         2,006,392
        Minus:Non-operatingexpenses                       7.46            164,050         1,392,362
    4. Totalprofits(totallossislistedwith"-")                               812,459,893       847,981,472
        Minus:Incometaxexpenses                          7.47         210,281,578       211,979,735
    5. Netprofit(netlossislistedwith"-")                                 602,178,315       636,001,737
    5.1 Classificationbyoperationcontinuity
    "-") 5.1.1Netprofitfromcontinuingoperation(netlossislistedwith             602,178,315       636,001,737
    with "-5".)1.2Net profit from terminating operation (net loss is listed
    5.2 Classificationbyownership
        5.2.1Netprofitattributabletoowneroftheparentcompany                 603,403,789       635,837,405
        5.2.2Minorityinterestincome                                     -1,225,474          164,332
    6. Netafter-taxamountofothercomprehensiveincome         7.48          -4,657,291       -11,126,413
    Nowetnaefrteorf-ttahxepamaroenutntcoomfoptahneyrcomprehensiveincomeattributableto                -3,060,721        -9,230,820
    6lo.1ssOlathteerrcomprehensiveincomenottobereclassifiedintoprofitand
    6.1.1 Changesafterremeasuringandresettingthebenefitplans
    6an.1d.2loOssthuenrdceormeqpureithyenlaswiveincomenottobereclassifiedintoprofit
    i6n.1st.r3uCmheanntsgesinthefairvalueofotherinvestmentsinequity
    6.1.4 Changesinthefairvalueoftheenterprise'sowncreditrisk
    6.1.5 Other
    6lo.2ssOlathteerrcomprehensiveincometobereclassifiedintoprofitand                 -3,060,721        -9,230,820
    6lo.2ss.1uOndtherereqcoumityprleahwensiveincometobereclassifiedintoprofitand
    6.2.2 Changesinthefairvalueofotherdebtinvestments
    f6o.2r.s3alPerofitandlossfromchangesinthefairvalueoffinancialassets
    c6o.2m.4pAremheonusnivteofinfcinoamnecialassetsreclassifiedintoother
    6in.2v.e5stPmroenfittsainndtolofisnsafnrcoimalraescsleatsssfifoircastailoenofheld-to-maturity
    6.2.6 Provisionforcreditimpairmentofothercreditinvestments
    6.2.7 Provisionforcash-flowhedge
    6S.t2a.t8emDeinffterenceintranslationofForeignCurrencyFinancial                    -3,060,721        -9,230,820
    6.2.9 Other
    mNeintoarfitteyr-sthaxaraemhooludnertsofothercomprehensiveincomeattributableto                -1,596,570        -1,895,593
    7. Totalcomprehensiveincome                                      597,521,024       624,875,324
    Attributable toowneroftheparentcompany                              600,343,068       626,606,585
    Attributable tominorityshareholders                                    -2,822,044        -1,731,261
    8. Earningspershare:
    8.1 Basicearningspershare                                              0.88            0.93
    8.2 Dilutedearningspershare                                             0.88            0.93
    
    
    LJieagnaxluRnepresentative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Jiang
    
    2.4 Profit statement of the parent company
    
    Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
    
                          Item                      Note  Sumofcurrentperiod  Sumofpriorperiod
    1. Operatingincome                                 15.4         352,351,002       408,845,211
    Minus: Operatingcosts                                15.4         309,570,580       352,646,989
         Taxesandsurcharges                                         13,140,156        24,463,375
         Selling expenses
         Administrative expenses                                       39,434,246        39,827,281
         Research anddevelopmentexpenses                                 405,061          360,466
         Financial expenses                                           -3,657,370       -15,151,608
         Including: Interestexpenses                                     -2,705,073        11,357,611
                 Interestincome                                       1,470,667        29,630,717
        Plus:Otherprofit                                              1,716,527        1,976,527
           Investmentprofit(lossislistedwith"-")               15.5         264,221,755       312,409,576
           Including:vIennvtuesretmentprofitforjoint-runbusinessandjoint
                 tFoinbaencrieacloagssneiztsedmeaassuinrecdomatea(mloosrstizisedlicsotesdtcweaisthe
                 "-")
           Netexposurehedgeincome(lossislistedwith"-")
           Incomefromfairvaluechanges(lossislistedwith"-")
           Creditimpairmentloss(lossislistedwith"-")
           Assetimpairmentloss(lossislistedwith"-")
           Incomefromassetdisposal(lossislistedwith"-")                                      75,000
    2. Operatingprofit(lossislistedwith"-")                               259,396,611       321,159,811
        Plus:Non-operatingincome                                         703,559          56,479
        Minus:Non-operatingexpenses                                       97,638            528
    3. Totalprofits(totallossislistedwith"-")                               260,002,532       321,215,762
        Minus:Incometaxexpenses                                        -726,946        2,450,592
    4. Netprofit(netlossislistedwith"-")                                 260,729,478       318,765,170
    "-") 4.1Net profit from continuing operation (net loss is listed with              260,729,478       318,765,170
    "-") 4.2Netprofitfromterminatingoperation(netlossislistedwith
    5. Netafter-taxamountofothercomprehensiveincome
    5lo.1ssOlathteerrcomprehensiveincomenottobereclassifiedintoprofitand
    5.1.1 Changesafterremeasuringandresettingthebenefitplans
    5an.1d.2loOssthuenrdceormeqpureithyenlaswiveincomenottobereclassifiedintoprofit
    i5n.1st.r3uCmheanntsgesinthefairvalueofotherinvestmentsinequity
    5.1.4 Changesinthefairvalueoftheenterprise'sowncreditrisk
    5.1.5 Other
    5lo.2ssOlathteerrcomprehensiveincometobereclassifiedintoprofitand
    5lo.2ss.1uOndtherereqcoumityprleahwensiveincometobereclassifiedintoprofitand
    5.2.2 Changesinthefairvalueofotherdebtinvestments
    f5o.2r.s3alPerofitandlossfromchangesinthefairvalueoffinancialassets
    c5o.2m.4pAremheonusnivteofinfcinoamnecialassetsreclassifiedintoother
    5in.2v.e5stPmroenfittsainndtolofisnsafnrcoimalraescsleatsssfifoircastailoenofheld-to-maturity
    5.2.6 Provisionforcreditimpairmentofothercreditinvestments
    5.2.7 Provisionforcash-flowhedge
    S5.t2a.t8emDeinffterenceintranslationofForeignCurrencyFinancial
    5.2.9 Other
    6. Totalcomprehensiveincome                                      260,729,478       318,765,170
    7. Earningspershare:
    7.1 Basicearningspershare                                              0.38            0.47
    7.2 Dilutedearningspershare                                             0.38            0.47
    
    
    LJieagnaxluRnepresentative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Jiang
    
    2.5 Consolidated cash flow statement
    
    Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
    
                     Item                        Note       Sumofcurrentperiod Sumofpriorperiod
    1. Cashflowsfromoperatingactivities:
    Csearsvhicerseceivedfrom sales of goods and rending of                     2,399,548,448     2,680,388,050
    Net increaseincustomerandinterbankdeposits
    Net increaseinborrowingsfromcentralbank
    Ninesttituitniocrnesasein borrowings from other financial
    Coraisghinarlecinesivueradncferocmontrreaccetivinginsurance premium of
    Net cashreceivedfromreinsurancebusiness
    fNuentdsincreasein policy holder deposits and investment
    aCnadshcormecmeiisvseidonfsromcollecting interest, handling fees
    Net increaseinborrowingfunds
    Net increaseinrepurchasementbusinessfunds
    Net cashreceivedforbuyingandsellingsecurities
    Tax refundreceived                                                20,038,271       26,089,608
    Other cashreceivedrelatedtooperatingactivities           7.49              67,785,620       42,343,021
    Subtotal ofcashflowsofoperatingactivities                            2,487,372,339     2,748,820,679
    Cash paidforgoodsandservices                                      718,093,432      677,552,938
    Net increaseincustomerloansandadvances
    dNeeptoisnitcsreasein deposits in central bank and interbank
    Cash paidtooriginalinsurancecontractpayments
    Net increaseinfinancialassetsheldfortradingpurposes
    Net increaseinlendingfunds
    Cash paidtointerest,handlingfeesandcommissions
    Cash paidtopolicybonus
    Cash paidtoandonbehalfofemployees                                 278,638,333      278,814,385
    Cash paidfortaxesandexpenses                                      598,384,101      802,722,798
    Other cashpaidrelatedtooperatingactivities              7.49             392,780,467      436,977,086
    Sub-total ofcashoutflowsofoperatingactivities                         1,987,896,333     2,196,067,207
                     Item                        Note       Sumofcurrentperiod Sumofpriorperiod
    Net cashflowfromoperatingactivities                                 499,476,006      552,753,472
    2. Cashflowfrominvestingactivities:
    Cash receivedfromdisinvestment
    Cash receivedfromwithdrawaloffixeddeposits                            104,597,650      305,000,000
    Cash receivedfromobtaininginvestmentincome
    Cash receivedfromobtaininginterestincome                                1,004,552        2,342,015
    Casassehtsraencdeiovtehderfrloomng-dteisrpmosaaslseotfsfixed assets, intangible                         175,837         471,130
    Nbuestinceassshunreitceivedfrom disposal of branch and other
    Other cashreceivedrelatedtoinvestingactivities
    Subtotal ofcashflowsofinvestmentactivities                            105,778,039      307,813,145
    Cotahsehrlpoanigd-tteormacqasusieretsfixedassets, intangible assets and                       135,073,897      154,464,274
    Cash forinvestment
    Cash paidforpurchasingfixeddeposits                                   85,238,750      340,000,000
    Net increaseinhypothecatedloan
    uNneittcash paid for acquiring branch and other business                                     104,566,419
    Other cashpaidrelatedtoinvestmentactivities
    Subtotal ofcashoutflowsofinvestmentactivities                          220,312,647      599,030,693
    Net cashflowfrominvestingactivities                                 -114,534,608      -291,217,548
    3. Cashflowfromfinancingactivities
    Cash receivedfromacquiringinvestment
    Isnhcalruedhionlgd:ersciansvhestrmeceenitvbeydbrfarnocmhacquiring minority
    Cash receivedfromacquiringloans                                     656,495,139      669,905,706
    Cash receivedfromissuingbonds
    Other cashreceivedrelatedtofinancingactivities           7.49                             23,521,431
    Subtotal cashflowsoffinancingactivities                               656,495,139      693,427,137
    Cash paidforpayingdebts                                          658,033,492      658,512,141
    Cinateshresptaidfor distributing dividend and profit or paying                       16,590,004       21,265,533
    Isnhcalruedhionlgd:ersdbiyvibdreanndchand  profit  paid  to minority
    Other cashpaidrelatedtofinancingactivities              7.49                             20,000,000
    Subtotal ofcashoutflowsoffinancingactivities                           674,623,496      699,777,674
    Net cashflowfromfinancingactivities                                   -18,128,357       -6,350,537
    a4n.dIncfalsuhenecqeusivoafleenxtcshangerate fluctuation on cash                          53,702       -7,404,199
    5. NetIncreaseincashandcashequivalents                             366,866,743      247,781,188
    Pcalushs:ebqauliavnacleenattsthe beginning ofthe period of cash and                     1,206,860,334     1,180,889,274
    6eq.uBiavlaalnencetsatthe end of the period of cash and cash                     1,573,727,077     1,428,670,462
    
    
    LJieagnaxluRnepresentative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Jiang
    
    2.6 Cash flow statement of the parent company
    
    Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
    
                         Item                        Sumofcurrentperiod     Sumofpriorperiod
    1. Cashflowsfromoperatingactivities:
    Cash receivedfromsalesofgoodsandrendingofservices                  219,405,421          275,862,358
    Tax refundreceived
    Other cashreceivedrelatedtooperatingactivities                         57,674,830          100,163,394
    Subtotal ofcashflowsofoperatingactivities                          277,080,251          376,025,752
    Cash paidforgoodsandservices                                   163,184,301          200,935,534
    Cash paidtoandonbehalfofemployees                               45,116,586          43,647,320
    Cash paidfortaxesandexpenses                                    22,530,113          43,132,327
    Other cashpaidrelatedtooperatingactivities                           321,847,893           19,942,485
    Sub-total ofcashoutflowsofoperatingactivities                       552,678,893          307,657,666
    Net cashflowfromoperatingactivities                             -275,598,642           68,368,086
    2. Cashflowfrominvestingactivities:
    Cash receivedfromdisinvestment
    Cash receivedfromwithdrawaloffixeddeposits                         40,000,000          305,000,000
    Cash receivedfromobtaininginvestmentincome                        760,152,668          717,667,435
    Cash receivedfromobtaininginterestincome                             484,857           2,342,015
    Notehtercaloshngr-etceerimveadssferotsmdisposaloffixedassets,intangibleassetsand               7,519             538,055
    Net cashreceivedfromdisposalofbranchandotherbusinessunit
    Other cashreceivedrelatedtoinvestingactivities
    Subtotal ofcashflowsofinvestmentactivities                         800,645,044        1,025,547,505
    lCoansgh-tepramidastsoetsacquiringfixed assets, intangible assets and other            10,164,233           11,968,401
    Cash forinvestment                                            13,000,000          105,926,184
    Cash paidforpurchasingfixeddeposits                               85,238,750          340,000,000
    Net cashpaidforacquiringbranchandotherbusinessunit
    Other cashpaidrelatedtoinvestmentactivities
    Subtotal ofcashoutflowsofinvestmentactivities                      108,402,983          457,894,585
    Net cashflowfrominvestingactivities                              692,242,061          567,652,920
    3. Cashflowfromfinancingactivities
    Cash receivedfromacquiringinvestment
    Cash receivedfromacquiringloans                                                   200,000,000
    Cash receivedfromissuingbonds
    Other cashreceivedrelatedtofinancingactivities
    Subtotal cashflowsoffinancingactivities                                              200,000,000
    Cash paidfordebts                                                              600,000,000
    Cash paidtodistributedividend,profitorpayinterest                       3,248,000           11,660,417
    Other cashpaidrelatedtofinancingactivities
    Subtotal ofcashoutflowsoffinancingactivities                         3,248,000          611,660,417
    Net cashflowfromfinancingactivities                                -3,248,000         -411,660,417
    4eq.uIinvfallueenntcsesof exchange rate fluctuation on cash and cash
    5. NetIncreaseincashandcashequivalents                          413,395,419          224,360,589
    Plus: balance at the beginning of the period of cash and cash           532,384,882          493,568,866
                         Item                        Sumofcurrentperiod     Sumofpriorperiod
    equivalents
    6. Balanceattheendoftheperiodofcashandcashequivalents            945,780,301          717,929,455
    
    
    LJieagnaxluRnepresentative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Jiang
    
    2.7 Consolidated owner’s equity changing list
    
    Unit: Yuan
    
                                                                         This period
                                                      Owners’equityoftheparentcompany
          Item                   OintshterurmeqeunittsyCapital   Minus:   Other   Special  Surplus   General  Undistributed                shaMreihnoolrditeyrs’Totalowners’
                    CapitalstockPreferredPerpetual     reserves  Trsetoascukrycomipnrceohmenesivereservesreserves  prepraisrkationprofits   Other   Subtotal      equity      equity
                              stock  bonds Other
    1la.sBtyaelaanrceattheendof685,464,000               565,955,441         2,965,377      342,732,000        8,008,982,547     9,606,099,365  284,388,012 9,890,487,377
    pPolulisc:ieschanAgicncgounting                                                                    -3,278,942        -3,278,942              -3,278,942
    cPorerrveicotuiosnerror
    Bunudseinrecsosmmcoonmcboinntartoioln
    Other
    2be.ginBnainlagnocfethisaytearthe685,464,000               565,955,441         2,965,377      342,732,000        8,005,703,605     9,602,820,423  284,388,012 9,887,208,435
    d3.ecreasIendcreaamseoduntoinr
    tahmisounpteriiosdlis(treedduwciinthg                                  -3,060,721                       192,125,389      189,064,668   -4,190,019   184,874,649
    "-")
    3co.1mprehensiveincoTmoteal                                     -3,060,721                       603,403,789      600,343,068   -2,822,044   597,521,024
    3an.2dreOdwucneedrsc'apiintavlested
    3co.2m.1moOnwstnoecrk’invested
    i3n.2st.r2umenOttherhoelqdueirtsy’
    investedcapital
    p3.a2id.3Aanmdournetckoofnsehdareins
    owners'equity
    3.2.4Other
    3.3 Profitdistribution                                                                       -411,278,400      -411,278,400   -1,367,975  -412,646,375
    3re.3se.1rveAsccrued surplus
    3ri.s3k.2preApcacrarutieodngeneral
    3o.w3n.3ersDistribution(otor                                                                    -411,278,400      -411,278,400   -1,367,975  -412,646,375
    shareholders)
    3.3.4Other
    3ow.4neInrste'ernqaulitytransferof
    3tr.a4n.1sferCreadpitalreseravneds
    icnacprietaalsestdockc)apital(or
    3tr.a4n.2sferSruedrplusreseravneds
    icnacprietaalsestdockc)apital(or
    c3o.4v.e3rinSgudrpelfuicsitreserves
    c3a.4rr.4ieRdeotvaeinrefdroemartnhiengs
    benefit planamount
    c3a.4rr.5ieRdeotvaeinrefdroemarontihnegrs
    comprehensive income
    3.4.6Other
    3.5 Specialreserves
    p3.e5r.i1odWithdrawalinthis
    3pe.5r.i2odUsage in  this
    3.6 Other
    t4h.isBpaelarniocdeattheendof685,464,000               565,955,441          -95,344      342,732,000        8,197,828,994     9,791,885,091  280,197,993 10,072,083,084
                                                                         Last period
                                                      Owners’equityoftheparentcompany
          Item                   OintshterurmeqeunittsyCapital  Minus:   Other                  General                          shaMreihnoolrditeyrs’Totalowners’
                    CapitalstockPreferredPerpetual     reserves  TrsetaoscukrycomipnrceohmenesiverSespeercvieaslrSeuserprvluessprepraisrkationUndpirsotrfiibtsutedOther   Subtotal      equity      equity
                             stock   bonds Other
    1la.sBtyaelaanrceattheendof685,464,000               565,955,441         3,109,240      342,732,000        7,309,081,618     8,906,342,299  271,636,379 9,177,978,678
    Ppolulisc:ieschanAgicncgounting
    cPorerrveicotuiosnerror
    Bunudseinrecsosmmcoonmcboinnatrtoioln
    Other
    2be.ginBnainlagnocfethisatyearthe685,464,000               565,955,441         3,109,240      342,732,000        7,309,081,618     8,906,342,299  271,636,379 9,177,978,678
    d3.ecreasIendcreaamseoduntoinr
    tahmisounpteriiosdlis(treedduwciinthg                               -143,863                       699,900,929      699,757,066   12,751,633   712,508,699
    "-")
    3co.1mprehensiveincoTmoteal                                      -143,863                      1,042,632,929     1,042,489,066   -1,381,414 1,041,107,652
    a3n.2dreOdwucneedrsc'apiintavlested                                                                                        17,532,823   17,532,823
    3co.2m.1moOnwsntoecrk’invested
    i3n.2st.r2umeOnttherhoelqdueirtsy’
    investedcapital
    p3.a2id.3Aanmdournectkoofnsehdareins
    owners'equity
    3.2.4Other    17,532,823   17,532,823
    3.3 Profitdistribution                                                                       -342,732,000      -342,732,000   -3,399,776  -346,131,776
    3re.3se.1rveAsccruedsurplus
    3ri.s3k.2preApcacrarutieodngeneral
    3o.w3n.3ersDistribution(otor                                                                    -342,732,000      -342,732,000   -3,399,776  -346,131,776
    shareholders)
    3.3.4Other
    3ow.4neInrste'ernqaulitytransferof
    3tr.a4n.1sferCreadpitalreseravneds
    icnacprietaalsestdockc)apital(or
    3tr.a4n.2sfeSrruerdplusreseravneds
    icnacprietaalsestdockc)apital(or
    c3o.4v.e3rinSgudrpelfuicsitreserves
    c3a.4rr.4ieRdeotvaeinrefdroemartnhiengs
    benefit planamount
    c3a.4rr.5ieRdeotvaeinrefdroemarontihnegrs
    comprehensive income
    3.4.6Other
    3.5 Specialreserves
    p3.e5r.i1odWithdrawalinthis
    3pe.5r.i2odUsage in this
    3.6 Other
    t4h.iBspalearniocdeattheendof685,464,000               565,955,441         2,965,377      342,732,000        8,008,982,547     9,606,099,365  284,388,012 9,890,487,377
    
    
    2.8 Owner’s equity changing list of the parent company
    
    Unit: Yuan
    
                                                                              Thisperiod
                Item                     Otherequityinstruments                                                                 Totalowners’CapitalCapital    Minus:      Other      Special   Surplus  Undistributed             equity
                                  stock  PrsetfoecrkredPebropnedtusalOther  reserves   Trsetoascukrycomipnrceohmenesivereserves  reserves     profits     Other
    1. Balanceattheendoflastyear      685,464,000                  557,222,454                            342,732,000 8,437,957,128        10,023,375,582
    Plus:Accounting policieschanging
    Previous errorcorrection
    Other
    2. Balanceatthebeginningofthisyear  685,464,000                  557,222,454                           342,732,000 8,437,957,128          10,023,375,582
    p3.erIinocdre(arseedducoirngdecarmeaosuendtaimsoliusntetdinwthitihs                                                                  -150,548,922            -150,548,922
    "-")
    3.1 Totalcomprehensiveincome                                                                              260,729,478            260,729,478
    3.2 Owners'investedandreducedcapital
    3st.o2c.1kShareholders’ invested common
    i3n.2v.e2steOdtchaepritaelquityinstrument holder’
    r3e.2ck.3oneAdminouonwtnerosf'eqsuhiatyrespaid and
    3.2.4 Other
    3.3 Profitdistribution                                                                                    -411,278,400            -411,278,400
    3.3.1 Drewsurplusreserves
    3sh.3a.r2eholDdeisrtsr)ibutionto  owners  (or                                                                        -411,278,400            -411,278,400
    3.3.3 Other
    3.4 Internaltransferofowners'equity
    i3n.4cr.1easCedapciataplitarle(soerrvceaspittarlanstsofcekrr)edand
    3.4.2 Surplus reserves transferred and
    increasedcapital(orcapitalstock)
    3.4.3 Surplusreservescoveringdeficit
    f3r.o4m.4tRheetabienneedfietaprlnainngasmcoaurnritedover
    f3r.o4m.5oRtehtearinceodmeparrenhienngssivcearirniecdomoveer
    3.4.6 Other
    3.5 Specialreserves
    3.5.1Accrual inthisperiod
    3.5.2 Usageinthisperiod
    3.6 Other
    4. Balanceattheendofthisperiod     685,464,000                  557,222,454                           342,732,000 8,287,408,206           9,872,826,660
    
    
    Unit: Yuan
    
                                                                              Lastperiod
                Item              Capital   Otherequityinstruments  Capital    Minus:      Other                                         Totalowners’
                                 stock   PrsetfoecrkredPebropnedtusalOther  reserves   TrsetaoscukrycomipnrceohmenesiverSepseercviaelsrSeuserprvluessUndpirsotrfiibtsutedOther       equity
    1. Balanceattheendoflastyear      685,464,000                  557,222,454                            342,732,000 7,811,100,555           9,396,519,009
    Plus:Accounting policieschanging
    Previous errorcorrection
    Other
    2. Balanceatthebeginningofthisyear  685,464,000                  557,222,454                            342,732,000 7,811,100,555           9,396,519,009
    3pe.rIinocdre(arseedducoirngdecarmeaosuendtaimsoliusntetdinwthitihs                                                                  626,856,573            626,856,573
    "-")
    3.1 Totalcomprehensiveincome                                                                              969,588,573            969,588,573
    3.2 Owners'investedandreducedcapital
    3st.o2c.1kShareholders’ invested common
    i3n.2v.e2steOdtchaepritaelquityinstrument holder’
    3.2.3  Amount of shares paid and
    reckonedinowners'equity
    3.2.4 Other
    3.3 Profitdistribution                                                                                    -342,732,000            -342,732,000
    3.3.1 Drewsurplusreserves
    s3h.3a.r2eholDdeisrtsr)ibutionto  owners  (or
    3.3.3 Other
    3.4 Internaltransferofowners'equity
    i3n.4cr.1easCedapciataplitarle(soerrvceaspittarlanstsofcekrr)edand
    i3n.4cr.2easSeudrpcalupsitarle(soerrvceaspittarlasntsofcekrr)edand
    3.4.3 Surplusreservescoveringdeficit
    f3r.o4m.4tRheetabienneedfietaprlnainngasmcoaurnritedover
    f3r.o4m.5oRtehtearinceodmeparrenhienngssivcearirniecdomoveer
    3.4.6 Other
    3.5 Specialreserves
    3.5.1Accrual inthisperiod
    3.5.2 Usageinthisperiod
    3.6 Other
    4. Balanceattheendofthisperiod     685,464,000                  557,222,454                            342,732,000 8,437,957,128          10,023,375,582
    
    
    3. Company profile
    
    Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) was
    
    incorporated as a joint-stock limited company in accordance with the Company Law of the People’s
    
    Republic of China (the “PRC”) in the merger and reorganization carried out by Yantai Changyu Group
    
    Co., Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to wine business. The
    
    Company and its subsidiary companies (hereinafter collectively referred to as the “Group”) are
    
    engaged in the production and sale of wine, brandy and champagne, planting and purchase of grapes,
    
    development of tourism resources, etc. The registered address of the Company is Yantai City,
    
    Shandong Province, and the office address of the headquarters is 56 Dama Road, Zhifu District, Yantai
    
    City, Shandong Province.
    
    As at June 30, 2019, the Company issued 685,464,000 shares accumulatively. Refer to Note 7.30 for
    
    details.
    
    The parent company of the Group is Changyu Group Company incorporated in China, which was
    
    ultimately and actually controlled by four parties, including Yantai Guofeng Investment Holding Co.,
    
    Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai Yuhua Investment &
    
    Development Co., Ltd.
    
    The financial statement and the consolidated financial statement of the Company were approved by
    
    the Board of Directors on August 26, 2019.
    
    The details of scope of the consolidated financial statement in this period can be seen in Note 9
    
    “Equity in other entities”. The details of scope changes of the consolidated financial statement in this
    
    period can be seen in Note 8 “Changes of the consolidated scope”.
    
    4. Preparation basis of financial statement
    
    4.1 Preparation basis
    
    The Group implements the Accounting Standards for Business Enterprises (including the new and
    
    revised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant
    
    regulations thereof.
    
    Note-accounting basis and pricing principle
    
    The note-accounting basis of financial accounting adopted by the Group is accrual system and the
    
    measurement basis adopted by the Group in preparing its financial statement is historical cost.
    
    Subsequently, if the assets are impaired, the impairment provisions are made in accordance with
    
    relevant accounting standards.
    
    When the historical cost measurement is used, the assets are measured by the amount of cash or cash
    
    equivalent when the assets are purchased or the fair value of the consideration. The liabilities are
    
    measured by the actually received funds or assets for performing the current obligations, or the
    
    contract amount for performing the current obligations, or the amount of cash or cash equivalent paid
    
    for anticipated liabilities in the daily activities.
    
    Fair value refers to a price received for selling an asset or paid for transferring a liability by the market
    
    participant in orderly transactions on the measurement date. No matter the fair value is observable or
    
    estimated by the valuation technique, the fair value measured and disclosed in this financial statement
    
    is recognized on this basis.
    
    The fair value measurement is divided into three levels based on the observable degree of the input
    
    fair value and the importance of this input value on the whole fair value measurement:
    
    *The input value of the first level is the unadjusted price of the same assets or liabilities which can be
    
    acquired in an active market on the measurement date.
    
    *The input value of the second level is the directly or indirectly observable input value of relevant
    
    assets or liabilities except that of the first level.
    
    *The input value of the third level is the unobservable input value of relevant assets or liabilities.
    
    4.2 Continuous operation
    
    The Group has appraised the ability of continuous operation for 12 months from June 30, 2019, and no
    
    issues or situations causing major doubts to this ability are found. Therefore, this financial statement is
    
    prepared on the basis of the continuous operation assumption.
    
    5. Main accounting policies and accounting estimates
    
    5.1 Statement on compliance with ASBE
    
    This financial statement fulfills the requirement of ASBE and gives a true and integrated view of the
    
    financial status and the consolidated financial status as at June 30, 2019, as well as the operating result,
    
    the consolidated operating result, the cash flow and the consolidated cash flow of the Company from
    
    January to June 2019.
    
    5.2 Accounting period
    
    The accounting period of the Group is from January 1 to December 31.
    
    5.3 Operating cycle
    
    The operating cycle refers to the period from the enterprise purchases the assets used for processing to
    
    the cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
    
    5.4 Recording currency
    
    Since Renminbi (RMB) is the currency of the main economic environment in which the Company and
    
    the domestic subsidiary companies thereof are situated, the Company and the subsidiary companies
    
    thereof adopt RMB as the recording currency. The overseas subsidiary companies thereof determine
    
    EUR, CLP and AUD as the recording currency according to the main economic environment in which
    
    they are situated. The currency in this financial statement prepared by the Group is RMB.
    
    5.5 Accounting treatment method for business combination under common control and
    
    non-common control
    
    5.5.1 Business combination and goodwill under non-common control
    
    A business combination under non-common control is a business combination in which all of the
    
    combining enterprises are not ultimately controlled by the same party or parties before and after the
    
    combination.
    
    The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed or
    
    the equity instruments issued by the acquirer in exchange for the control over the acquiree. The
    
    intermediary expenses such as audit, legal services and assessment consultation and other related
    
    management expenses paid by the acquirer for business combination are included in the current profits
    
    and losses when they occur.
    
    The identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree in the
    
    business combination and meet the recognition conditions shall be measured on the acquisition date
    
    according to the fair value thereof.
    
    Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’s
    
    identifiable net assets, the difference shall be recognized as goodwill as an asset and initially measured
    
    at cost. Where the cost of combination is less than the acquirer’s interest in the fair value of the
    
    acquiree’s identifiable net assets, the acquirer firstly re-assesses the measurement of the fair values of
    
    the acquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the cost of
    
    combination. If after that reassessment, the cost of combination is still less than the acquirer’s interest
    
    in the fair value of the acquiree’s identifiable net assets, the acquirer recognizes the remaining
    
    difference immediately in profit or loss for the current period.
    
    The goodwill formed due to business combination shall be separately listed in the consolidated
    
    financial statement and measured on the basis of the cost minus the accumulative impairment
    
    provision.
    
    5.6 Compiling methods of consolidated financial statement
    
    The consolidation scope of the consolidated financial statement is determined on the basis of control.
    
    Control means that the investor holds the power in the invested party, obtains variable returns by
    
    participating in relevant activities of the invested party and has the ability to affect the amount of the
    
    returns by using the power on the invested party. Once any change of the relevant facts and situations
    
    results in any change of relevant elements of the above definition of Control, the Group will carry out
    
    reappraisal.
    
    The merger of any subsidiary company starts from the date when the Group acquires the power to
    
    control this subsidiary company, while the termination of any subsidiary company ends in the date
    
    when the Group losses the power to control this subsidiary company.
    
    As for any subsidiary company obtained in a business combination under non-common control, the
    
    business result and the cash flow thereof since the acquisition date (date of obtaining the control power)
    
    shall have been properly included in the consolidated income statement and the consolidated cash flow
    
    statement.
    
    The principal accounting policies and accounting period adopted by the subsidiary companies shall be
    
    determined in accordance with the accounting policies and accounting period uniformly regulated by
    
    the Company.
    
    The influence of the internal transaction between the Company and the subsidiary companies as well
    
    as among subsidiary companies on the consolidated financial statement shall be neutralized at the time
    
    of combination.
    
    The shares in the owner's equity of the subsidiary companies, which do not belong to the parent
    
    company, shall be recognized as the minority equity and listed under the item of “minority equity” of
    
    the owner’s equity in the balance sheet. The shares in the current profits and losses of the subsidiary
    
    companies, which belong to the minority equity, shall be listed under the item of “minority equity” of
    
    the net profit in the consolidated income statement.
    
    If the loss of the subsidiary companies borne by minority shareholders exceeds the shares of the
    
    owner's equity entitled therein by the minority shareholders at the beginning of the period, the
    
    difference shall be still credited against the minority equity.
    
    5.7 Determination standard of cash and cash equivalents
    
    Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer to
    
    short-term highly liquid investments held by the Group which are readily convertible into known
    
    amount of cash with an insignificant risk of changes in value.
    
    5.8 Foreign currency transaction and foreign currency statement translation
    
    5.8.1 Foreign currency transaction
    
    At the time of initial recognition of a foreign currency transaction, the amount of the foreign currency
    
    shall be translated into the amount of the recording currency at the spot exchange rate on the
    
    transaction date.
    
    The monetary items of the foreign currency transaction shall be translated into RMB at the spot
    
    change rate on the balance sheet date. The currency translation difference generated by the difference
    
    between the spot change rate on the balance sheet date and the spot change rate at the initial
    
    recognition or on the previous balance sheet date shall be included in the current profits and losses,
    
    except: ① the currency translation difference of the dedicated foreign currency loan that meets the
    
    capitalization condition shall be included in the cost of assets as capitalization during the capitalization
    
    period; ② the currency translation difference of the arbitrage tool to avoid foreign exchange risk
    
    shall be treated according to the hedge accounting method; ③ the currency translation difference of
    
    the available-for-sale monetary items generated by changes of the book balance other than the
    
    amortized cost shall be recognized as other comprehensive income and included in the current profits
    
    and losses.
    
    5.8.2 Translation of foreign currency financial statement
    
    In order to compile a consolidated financial statement, the foreign currency financial statement of
    
    overseas business shall be translated into RMB financial statement in accordance with the following
    
    methods: all asset and liability items in the balance sheet shall be translated at the spot exchange rate
    
    on the balance sheet date; the shareholders' equity items, except for the ones as "undistributed profits",
    
    shall be translated at the spot exchange rate at the time when they occur; all items and the items
    
    reflecting the accrual profit distribution in the profit statement shall be translated at the exchange rate
    
    similar to the spot exchange rate at the time when they occur; the undistributed profits at the beginning
    
    of the year shall be the translated to the undistributed profits at the end of the previous year; the
    
    undistributed profits at the end of the year shall be calculated and listed as the translated profit
    
    distribution items; and the difference between the asset items and the sum of the liability items and the
    
    shareholders’ equity items shall be recognized as other comprehensive income and included in the
    
    shareholder's equity.
    
    The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall be
    
    translated at the exchange rate similar to the spot exchange rate at the time when they occur; the
    
    amount of the cash and cash equivalents impacted by the exchange rate movement shall be, as a
    
    reconciling item, separately listed under “impact of exchange rate movement on cash and cash
    
    equivalents” in the cash flow statement.
    
    The balance at the beginning of the year and the actual amount of the previous year shall be listed as
    
    the amount translated according to the financial statement of the previous year.
    
    5.9 Financial instruments
    
    When becoming a party to a contract of financial instruments, the Company shall recognize a financial
    
    asset or financial liability.
    
    5.9.1 Classification, recognition and measurement of financial assets
    
    According to the business model of financial assets management and the contractual cash flow
    
    characteristics of financial assets, the Company divides financial assets into: financial assets measured
    
    at amortized cost; financial assets measured at fair value and the variation of which is included in
    
    other comprehensive income; and financial assets measured at fair value and the variation of which is
    
    included in the current profits and losses.
    
    At the time of initial recognition, financial assets shall be measured at their fair value. As for the
    
    financial assets measured at their fair value and the variation of which is included in the current profits
    
    and losses, the transaction expenses thereof shall be directly included in the current profits and losses;
    
    as for other categories of financial assets, the transaction expenses thereof shall be included in initial
    
    recognized cost. For accounts receivable or bills receivable arising from sale of products or provision
    
    of services, which do not contain or do not take into account material financing elements, the
    
    Company shall take the amount of consideration that the Company is entitled to receive as expected as
    
    the initial recognized amount.
    
    ① Financial assets measured at amortized cost
    
    The Company manages such financial assets by the following business model: collecting contractual
    
    cash flow as the target, with the contractual cash flow characteristics of such financial assets consistent
    
    with the basic lending arrangement, that is, the cash flow generated on a specific date is only the
    
    payment of principal and interest based on the outstanding principal amount. The Company shall
    
    recognize the interest income of such financial assets by the actual interest rate method, and conduct
    
    subsequent measurement at amortized cost. The profits or losses generated from the amortization or
    
    impairment shall be included in the current profits and losses.
    
    ② Financial assets measured at fair value and the variation of which is included in other
    
    comprehensive income
    
    The Company manages such financial assets by the following business model: aiming at both
    
    receiving contractual cash flow and selling, with the contractual cash flow characteristics of such
    
    financial assets consistent with the basic lending arrangements. Such financial assets are measured at
    
    fair value and the variation of which is included in other comprehensive income, but impairment
    
    losses or gains, exchange gains and losses and interest income calculated by the effective interest rate
    
    method shall be included in the current profits and losses.
    
    In addition, the Company designates some non-tradable equity instrument investments as financial
    
    assets measured at fair value and the variation of which is included in other comprehensive income.
    
    The Company shall include relevant dividend income of such financial assets in the current profits and
    
    losses, and the fair value changes in other comprehensive income. When the recognition of such
    
    financial assets is terminated the accumulated gains or losses previously recorded in other
    
    comprehensive income will be transferred into retained income from other comprehensive income,
    
    which shall not be included in the current profits and losses.
    
    ③ Financial assets measured at fair value and the variation of which is included in the current profits
    
    and losses
    
    The Company divides those financial assets excluding the above financial assets measured at
    
    amortized cost and financial assets measured at fair value and the variation of which is included in
    
    other comprehensive income into financial assets measured at fair value and the variation of which is
    
    included in the current profits and losses, and list as tradable financial assets. In addition, at the time of
    
    initial recognition, in order to eliminate or significantly reduce accounting mismatches, the Company
    
    designates some financial assets as financial assets measured at fair value and the variation of which is
    
    included in the current profits and losses. For such financial assets, the Company adopts fair value for
    
    subsequent measurement, and the variation in fair value shall be included in the current profits and
    
    losses. The financial assets that have matured for more than one year since the balance sheet date and
    
    are expected to be held for more than one year are listed as other non-current financial assets.
    
    5.9.2 Classification, recognition and measurement of financial liabilities
    
    At the time of initial recognition, financial liabilities are divided into financial liabilities measured at
    
    fair value and the variation of which is included in the current profits and losses and other financial
    
    liabilities. As for the financial liabilities measured at fair value and the variation of which is included
    
    in the current profits and losses, the transaction expenses thereof shall be directly included in the
    
    current profits and losses; as for other financial liabilities, the transaction expenses thereof shall be
    
    included in initial recognized cost.
    
    ①Financial liabilities measured at fair value and the variation of which is included in the current
    
    profits and losses
    
    Financial liabilities measured at fair value and the variation of which is included in the current profits
    
    and losses include tradable financial liabilities (including derivatives belonging to financial liabilities)
    
    and financial liabilities designated as those measured at fair value when initially recognized and the
    
    variation of which is included in the current profits and losses.
    
    Tradable financial liabilities (including derivatives belonging to financial liabilities) shall be
    
    subsequently measured at fair value, and the variation in the fair value shall be included in the current
    
    profits and losses except those related to hedge accounting.
    
    For the financial liabilities designated as those measured at fair value and the variation of which is
    
    included the current profits and losses, the variation in fair value caused by changes in the Company's
    
    own credit risk is included into other comprehensive income, and when the recognition of this liability
    
    is terminated, the accumulated variation in fair value caused by changes in its own credit risk which is
    
    included into other comprehensive income shall be transferred into retained income.
    
    The remaining variations in fair value are included in the current profits and losses. If any accounting
    
    mismatch in profits and losses is caused or enlarged by handling the impact of changes in the own
    
    credit risk of such financial liabilities in the above way, the Company shall include all the gains or
    
    losses of such financial liabilities (including the impact amount of changes in the credit risk of the
    
    enterprise) in the current profits and losses.
    
    ② Other financial liabilities
    
    In addition to the financial assets of which the transfer doesn’t meet the conditions to terminate the
    
    recognition or financial liabilities formed by continuous involvement in the transferred financial assets
    
    and other financial liabilities beyond the financial guarantee contract classified as financial liabilities
    
    measured at amortized cost, the financial liabilities shall be measured at the amortized cost for
    
    subsequent measurement, and the profits or losses caused by termination of recognition or
    
    amortization shall be included in the current profits and losses.
    
    5.9.3 Recognition basis and measurement method for the transfer of financial assets
    
    Where a financial asset meets any of the following requirements, the recognition of it shall be
    
    terminated: ① The contractual rights for collecting the cash flow of the said financial asset are
    
    terminated; ②The financial asset has been transferred and almost all the risks and rewards in the
    
    ownership of the financial asset have been transferred to the transferee; ③The financial asset has been
    
    transferred, although the enterprise has neither transferred nor retained almost all the risks and rewards
    
    in the ownership of the financial asset, it has given up its control over the financial asset. If the
    
    enterprise has neither transferred nor retained nearly all the risks and rewards in the ownership of the
    
    financial asset, and has not given up its control over the financial asset, relevant financial asset shall be
    
    recognized according to the extent of its continued involvement in the transferred financial asset, and
    
    relevant liabilities shall be recognized accordingly. The extent of continued involvement in the
    
    transferred financial asset refers to the risk level faced by the enterprise due to the change in the value
    
    of the financial asset.
    
    Where the overall transfer of the financial asset meets the derecognition conditions, the difference
    
    between the book value of the transferred financial asset as well as the consideration received due to
    
    such transfer and the summation of the cumulative amount of the fair value of the asset that is
    
    originally included in other comprehensive income shall be included in the current profits and losses.
    
    Where the partly transfer of a financial asset meets the derecognition conditions of termination, the
    
    book value of the transferred financial asset shall be distributed between the terminated part of the
    
    recognition and the unterminated part of the recognition, and the difference between the sum of the
    
    consideration received as a result of the transfer and the accumulated mount of the changes in the fair
    
    value of the derecognized part that is originally included in other comprehensive income and the
    
    aforesaid distributed book amount shall be included in the current profits and losses.
    
    The Company shall determine whether almost all the risks and rewards in the ownership of the
    
    financial assets sold by means of attached right of recourse or the financial assets that it holds which
    
    are endorsed to transfer have been transferred. Where almost all the risks and rewards in the ownership
    
    of the financial assets have been transferred to the transferee, the recognition of such financial assets
    
    shall be terminated; Where almost all the risks and rewards in the ownership of the financial assets are
    
    retained, the recognition of such financial assets shall not be terminated; If almost all the risks and
    
    rewards in the ownership of the financial assets are neither transferred nor retained, the enterprise shall
    
    continue to judge whether it retains control over the assets and then conduct accounting treatment in
    
    accordance with the principles described in the preceding paragraphs.
    
    5.9.4 Derecognition of financial liabilities
    
    Where the current obligation of a financial liability (or part thereof) has been discharged, the Company
    
    shall terminate the recognition of such financial liability (or part thereof). If the Company (borrower)
    
    signs an agreement with the lender to replace the original financial liability by assuming the new
    
    financial liability, and the contract terms of the new financial liability are substantially different from
    
    those of the original financial liability, the recognition of the original financial liability shall be
    
    terminated and a new financial liability shall be recognized at the same time. If the Company
    
    substantially modifies the contract terms of the original financial liability (or part thereof), it shall
    
    terminate the recognition of the original financial liability and recognize a new financial liability in
    
    accordance with the revised terms at the same time.
    
    If the recognition of a financial liability (or part of it) is terminated, the Company shall record the
    
    difference between its book value and the consideration paid (including the transferred non-cash assets
    
    or liabilities assumed) into the current profits and losses.
    
    5.9.5 Offsetting of financial assets and financial liabilities
    
    Where the Company has a legal right that is currently enforceable to set off the recognized amount of
    
    financial assets and financial liabilities, and intends either to settle on a net basis, or to realise the
    
    financial assets and clear off the financial liabilities simultaneously, the financial assets and financial
    
    liabilities shall be offset and the net amount is presented in the balance sheet. Except for the above
    
    circumstances, financial assets and financial liabilities shall be presented separately in the balance
    
    sheet and shall not be offset.
    
    5.9.6 Determination method of the fair value of financial assets and liabilities
    
    The fair value refers to the price that market participants need to pay to receive or transfer a
    
    liability when selling an asset in an orderly transaction that takes place on the measurement
    
    date. Where there is an active market for a financial instrument, the Company shall determine
    
    its fair value by the quotation in the active market. Quotations in the active market are prices
    
    that are readily available from exchanges, brokers, trade associations, pricing services, etc., on
    
    a regular basis, which represent the prices of actual market transactions that occur in fair trade.
    
    Where there is no active market for financial instruments, the Company shall use valuation
    
    techniques to determine their fair value. Valuation techniques include referring to prices used
    
    in recent market transactions by parties familiar with the situation and willing to trade, current
    
    fair values of other financial instruments that are substantially the same, discounted cash flow
    
    method, option pricing models, etc. At the time of valuation, the Company adopts valuation
    
    techniques applicable to the current situation and supported by sufficient available data and
    
    other information, selects input values consistent with the asset or liability characteristics
    
    considered by market participants in the transaction of related assets or liabilities, and gives
    
    priority to relevant observable input values as far as possible. When relevant observable input
    
    values can’t be obtained or are not practicable to obtain, the non-inputable values shall be
    
    used.
    
    5.9.7 Equity instruments
    
    An equity instrument is any contract that evidences a residual interest in the assets of the Company
    
    after deducting all of its liabilities. The Company issues (including refinancing), repurchases, sells or
    
    cancels equity instruments as changes in equity, and transaction costs related to equity transactions are
    
    deducted from the equity. The Company does not recognize any variation in the fair value of equity
    
    instruments.
    
    Dividends paid on the Company's equity instruments during their existence (including the “interest”
    
    generated by the instruments classified as equity instruments) shall be treated as profit distribution.
    
    5.9.8 Impairment of financial assets
    
    For financial assets measured at amortized cost and debt instrument investments measured at fair value
    
    and whose changes are included in other comprehensive income, the Company shall recognize
    
    provision for losses on the basis of expected credit losses.
    
    The Company takes reasonable and reliable information about past events, current situation and
    
    forecast of future economic situation into consideration, calculates the probability weighted amount of
    
    the present value of the difference between the cash flow receivable of the contract and the cash flow
    
    expected to be received based on the weight of the risk of default, and recognizes the expected credit
    
    losses.
    
    On each balance sheet date, the Company measures the expected credit losses of financial instruments
    
    at different stages respectively. If the credit risk of the financial instrument does not increase
    
    significantly after the initial recognition, in the first stage, the Company shall measure the provision
    
    for losses according to the expected credit losses in the next 12 months; If the credit risk of a financial
    
    instrument has increased significantly since the initial recognition, but no credit impairment has
    
    occurred, in the second stage, the Company shall measure the provision for losses according to the
    
    expected credit loss of the entire duration of the instrument; If the credit impairment of a financial
    
    instrument has occurred since the initial recognition, in the third stage, the Company shall measure the
    
    provision for losses according to the expected credit loss of the entire duration of the instrument.
    
    For financial instruments with low credit risk on the balance sheet date, the Company assumes that the
    
    credit risk has not increased significantly since the initial recognition, and measures the provision for
    
    losses according to the expected credit loss in the next 12 months.
    
    For the financial instruments in the first and second stages and with low credit risk, the Company
    
    calculates the interest income according to the book balance without deduction of impairment
    
    provision at the actual interest rate. For financial instruments in the third stage, interest income is
    
    calculated according to the book balance minus the amortized cost at the actual interest rate after the
    
    provision for impairment has been accrued.
    
    When an individual financial asset can’t evaluate the information of the expected credit loss at a
    
    reasonable cost, the Company divides the receivables into several combinations according to the
    
    characteristics of credit risk, and calculates the expected credit loss on the basis of the combination.
    
    For bills receivable and accounts receivable, no matter whether there is a significant financing
    
    component, the Company measures the provision for losses according to the expected credit loss
    
    throughout the duration.
    
    For the bills receivable divided into portfolio, the Company calculates the expected credit loss by
    
    referring to the historical credit loss experience, combining the current situation as well as the forecast
    
    of the future economic situation, and through the default risk exposure and the expected credit loss
    
    rate of the entire duration.
    
    For the accounts receivable divided into portfolio, the Company calculates the expected credit loss by
    
    referring to the historical credit loss experience, combining the current situation as well as the forecast
    
    of the future economic situation, and formulating the comparison table of the overdue days of accounts
    
    receivable and the expected credit loss rate of the whole duration.
    
    For other receivables divided into portfolio, the Company calculates the expected credit loss by
    
    referring to the historical credit loss experience, combining the current situation as well as the forecast
    
    of the future economic situation, and through the default risk exposure and the expected credit loss
    
    rate within the next 12 months or the entire duration.
    
    The Company will include the accrued or transferred-back provision for losses in the current profits
    
    and losses. For debt instruments that are measured at fair value and the variation of which is included
    
    in other comprehensive income, the Company shall adjust other comprehensive income while
    
    including impairment loss or profit in the current profits and losses.
    
    5.10 Inventories
    
    5.10.1 Categories of inventories
    
    The inventories of the Group mainly include raw materials, goods in process and finished goods.
    
    Inventories are initially measured at cost. Inventory costs include purchase costs, processing costs and
    
    other expenses incurred to bring inventory to its current location and condition.
    
    The agricultural products harvested are treated in accordance with the Accounting Standard for
    
    Business Enterprises No.1 – Inventories.
    
    5.10.2 Valuation method of inventories upon delivery
    
    The actual cost of inventories upon delivery is calculated by the weighted average method.
    
    5.10.3 Determination basis for net realisable value of inventories
    
    On the balance sheet date, inventories are measured at the lower of cost and net realisable value. If
    
    the net realisable value is below the cost of inventories, a provision for decline in value of inventories
    
    is made. Net realisable value is the estimated selling price in the ordinary course of business less the
    
    estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net
    
    realisable value is determined on the basis of clear evidence obtained, and takes into consideration the
    
    purposes of holding inventories and effect of post balance sheet events.
    
    Provision for decline in value of other inventories is made based on the excess of cost of inventory
    
    over its net realisable value on an item-by-item basis.
    
    After the provision for decline in value of inventories is made, if the circumstances that previously
    
    caused inventories to be written down below cost no longer exist so that the net realisable value of
    
    inventories is higher than their cost, the original provision for decline in value is reversed and the
    
    reversal is included in profit or loss for the period.
    
    5.10.4 Inventory count system
    
    The perpetual inventory system is maintained for stock system.
    
    5.10.5 Amortization method for low cost and short-lived consumable items and
    
    packaging materials
    
    Packaging materials and low cost and short-lived consumable items are amortized using the immediate
    
    write-off method.
    
    5.11 Non-current assets held for sale
    
    Non-current assets and disposal groups are classified as held for sale category when the Group
    
    recovers the book value through a sale (including an exchange of nonmonetary assets that has
    
    commercial substance) rather than continuing use.
    
    Non-current assets or disposal groups classified as held for sale are required to satisfy the following
    
    conditions: (1) the asset or disposal group is available for immediate sale in its present condition
    
    subject only to terms that are usual and customary for sales of such asset or disposal group; (2) the sale
    
    is highly probable, i.e. the Group has made a resolution about selling plan and obtained a confirmed
    
    purchase commitment and the sale is expected to be completed within one year.
    
    The Group measures the no-current assets or disposal groups classified as held for sale at the lower of
    
    their carrying amount and fair value less costs to sell. Where the carrying amount is higher than the net
    
    amount of fair value less costs to sell, carrying amount should be reduced to the net amount of fair
    
    value less costs to sell, and such reduction is recognized in impairment loss of assets and included in
    
    profit or loss for the period. Meanwhile, provision for impairment of held-for-sale assets are made.
    
    When there is increase in the net amount of fair value of non-current assets held for sale less costs to
    
    sell On the balance sheet date, the original deduction should be reversed in impairment loss of assets
    
    recognized after the classification of held-for-sale category, and the reverse amount is include in profit
    
    or loss for the period.
    
    Non-current assets held for sale in non-current assets are not subject to depreciation or amortization.
    
    5.12 Long-term equity investments
    
    5.12.1 Judgment basis of control, joint control and significant influence
    
    Control is the power to govern the financial and operating policies of an entity so as to obtain benefits
    
    from its activities. Joint control is the contractually agreed sharing of control over an economic activity,
    
    and exists only when the strategic financial and operating policy decisions relating to the activity
    
    require the unanimous consent of the parties sharing control. Significant influence is the power to
    
    participate in the financial and operating policy decisions of the investee but is not control or joint
    
    control over those policies. When determining whether an investing enterprise is able to exercise
    
    control or significant influence over an investee, the effect of potential voting rights of the investee
    
    (for example, warrants and convertible debts) held by the investing enterprises or other parties that are
    
    currently exercisable or convertible shall be considered.
    
    5.12.2 Determination of initial investment cost
    
    For a long-term equity investment acquired not involving enterprises under common control, the
    
    investment cost of the long-term equity investment is the cost of acquisition.
    
    Audit fee, legal services, evaluation and consulting fees and other related management costs in
    
    acquisition are expensed in profits and losses when happened.
    
    Other long-term equity investments acquired from other than acquisitions are recognized using
    
    original cost.
    
    5.12.3 Subsequent measurement and recognition of profit or loss
    
    Long-term equity investment accounted for using the cost method
    
    The financial statement of the Company accounts for long-term equity investment using the cost
    
    method. A subsidiary is an investee that is controlled by the Group.
    
    Under the cost method, a long-term equity investment is measured at initial investment cost.
    
    Long-term equity investment is adjusted when capital is added or recollected. Investment income is
    
    recognized in the period in accordance with the attributable share of cash dividends or profit
    
    distributions declared by the investee.
    
    5.12.4 Disposal of long-term equity investments
    
    On disposal of a long-term equity investment, the difference between the proceeds actually received
    
    and receivable and the carrying amount is recognized in profit or loss for the period.
    
    5.13 Investment properties
    
    Investment property is property held to earn rentals or for capital appreciation or both.
    
    An investment property is measured initially at cost. Subsequent expenditures incurred for such
    
    investment property are included in the cost of the investment property if it is probable that economic
    
    benefits associated with an investment property will flow to the Group and the subsequent
    
    expenditures can be measured reliably. Other subsequent expenditures are recognized in profit or loss
    
    in the period in which they are incurred.
    
    The Group uses the cost model for subsequent measurement of investment properties, and adopts a
    
    depreciation or amortization policy for the investment property which is consistent with that for
    
    buildings or land use rights.
    
    When an investment property is sold, transferred, retired or damaged, the Group recognizes the
    
    amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for
    
    the period.
    
    5.14 Fixed assets
    
    5.14.1 Recognition condition
    
    Fixed assets are tangible assets that are held for use in the production or supply of goods or services,
    
    for rental to others, or for administrative purposes, and have useful lives of more than one accounting
    
    year. A fixed asset is recognized only when it is probable that economic benefits associated with the
    
    asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are
    
    initially measured at cost.
    
    Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it
    
    is probable that economic benefits associated with the asset will flow to the Group and the subsequent
    
    expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is
    
    derecognized. Other subsequent expenditures are recognized in profit or loss in the period in which
    
    they are incurred.
    
    5.14.2 Depreciation method
    
    A fixed asset is depreciated over its useful life using the straight-line method since the month
    
    subsequent to the one in which it is ready for intended use. The useful life, estimated net residual
    
    value rate and annual depreciation rate of each category of fixed assets are as follows:
    
    Classification        Depreciationmethod  Depreciation   Residual  valueAnnual  depreciationliferate           rate
    Houses and buildings  Straight-linedepreciation20-40years    0-5%          2.4%-5.0%
    Machinery equipment  dSetrpariegchita-tliionne5-30years     0-5%          3.2%-20.0%
    Transportation tools   dSetrpariegchita-tliionne4-12years     0-5%          7.9%-25.0%
    
    
    Estimated net residual value assumes the situation where a fixed asset expire for its estimated useful
    
    life and is in its expected final status. Estimated net residual value is the amount that the Group can
    
    obtain from the disposal less expected disposal fees.
    
    5.14.3 Other explanations
    
    If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its
    
    use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired or
    
    damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related
    
    taxes is recognized in profit or loss for the period.
    
    The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation
    
    method applied at least once at each financial year-end, and account for any change as a change in an
    
    accounting estimate.
    
    5.15 Construction in progress
    
    Construction in progress is measured at its actual costs. The actual costs include various construction
    
    expenditures during the construction period, borrowing costs capitalised before it is ready for intended
    
    use and other relevant costs. Construction in progress is not depreciated. Construction in progress
    
    is transferred to a fixed asset when it is ready for intended use.
    
    5.16 Borrowing costs
    
    Borrowing costs directly attributable to the assets meeting the capitalization conditions during the
    
    acquisition, construction or production shall be capitalized when expenditures for such asset and
    
    borrowing costs are incurred and activities relating to the acquisition, construction or production of the
    
    asset that are necessary to prepare the asset for its intended use or sale have commenced.
    
    Capitalization of borrowing costs shall be terminated when the qualifying asset being acquired,
    
    constructed or produced becomes ready for its intended use or sale. Capitalization of borrowing costs
    
    is suspended during the period in which the acquisition, construction or production of a qualifying
    
    asset is suspended abnormally and when the suspension is for a continuous period of more than 3
    
    months, until the acquisition, construction or production of the asset is resumed. Other borrowing
    
    costs are recognized as an expense in the period in which they are incurred.
    
    The interest expenses actually incurred in the current period of the special loan shall be capitalized
    
    after deducting the interest income obtained by depositing the unused loan funds into the bank or the
    
    investment income obtained from the temporary investment.
    
    5.17 Biological assets
    
    The biological assets of the Group are productive biological assets.
    
    Productive biological assets are biological assets, for example, held for the production of agricultural
    
    produce, provision of services or leasing Productive biological assets in the Group are vines to
    
    produce grapes. A productive biological asset is initially measured at cost. The cost of a productive
    
    biological asset self-grown or self-bred comprises those costs necessarily incurred and directly
    
    attributable to the asset before the asset becomes available for its intended production and operating
    
    purposes, and any borrowing cost meeting the capitalisation criteria.
    
    The productive biological assets are not accrued depreciation until reaching the intended production
    
    and operation purposes. After reaching the intended production and operation purposes, the productive
    
    biological assets are accrued depreciation within the service life straight-line depreciation. The service
    
    life, estimated net residual value rate and annual depreciation rate of different productive biological
    
    assets are as follows:
    
    Category Useful life Estimated net residual rate Annual depreciation rate
    
    Vines 20 years 5.0%
    
    The Group evaluates the useful life and expected net salvage value by considering the normal
    
    producing life of the productive biological assets.
    
    The Group reviews the useful life and estimated net residual value of productive biological assets and
    
    the depreciation method applied at least once at each financial year-end, and account for any change as
    
    a change in an accounting estimate.
    
    On the sale, identification of any shortages during stocktaking, death or damage of biological asset, the
    
    proceeds on disposal net of the carrying amount and relevant taxes is recognized in profit or loss for
    
    the current period.
    
    5.18 Intangible assets
    
    Intangible assets include land use right, software, trademark, etc.
    
    An intangible asset is measured initially at cost method. When an intangible asset with a finite useful
    
    life is available for use, its original cost less net residual value and any accumulated impairment losses
    
    is amortized over its estimated useful life using the straight-line method. Intangible assets with
    
    indefinite useful lives are not amortized. The useful lives of the intangible assets are as follows:
    
    Category Useful life Estimated net residual rate Annual amortization rate
    
    Land use right 40-50 years - 2%-2.5%
    
    Software 5-10 years - 10%-20%
    
    Trademark 10 years 10%
    
    Except for the above intangible assets with finite useful life, the Group also has land use right and
    
    trademark use right with infinite useful lives. Land use right with infinite useful life refers to the
    
    permanent land property right held by the Company for purchasing by Vi?a Indómita, S.A., Vi?a Dos
    
    Andes, S.A., and Bodegas Santa Alicia SpA. (collectively referred to as the "Chile Indomita Wine
    
    Group") and Kilikanoon Estate Pty Ltd (hereinafter referred to as “Australian Kilikanoon Estate”)
    
    according to related Chilean and Australian law, which doesn’t need to be amortized. Trademark use
    
    right refers to the trademark held by the Group for purchasing Chile Indomita Wine Group and
    
    Australian Kilikanoon Estate, which has no finite useful life. The valuation of trademark use right is
    
    based on the trends in the market and competitive environment, product cycle, and managing
    
    long-term development strategy. Those basis indicated the trademark will provide net cash flows to the
    
    Group within a given period. Because it was hard to predict the period that it would bring economic
    
    benefits to the Group, the useful lives were uncertain.
    
    For an intangible asset with a finite useful life, the Group reviews the useful life and Amortization
    
    method at the end of the period, and makes adjustments when necessary.
    
    5.19 Impairment of long-term assets
    
    The Group and the Company review the impairment status of long-term equity investments, fixed
    
    assets, investment real estate, construction in progress, productive biological asset and intangible
    
    assets with finite useful life at the end of each year. If the assets exist impairment, the Group estimates
    
    the recoverable amount of the assets. Intangible assets with indefinite useful life and intangible assets
    
    not yet available for use are tested for impairment annually, irrespective of whether there is any
    
    indication that the assets may be impaired.
    
    Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable
    
    amount of an individual asset, the recoverable amount of the asset group to which the asset belongs
    
    will be estimated. The recoverable amount of an asset is the higher of its fair value less costs of
    
    disposal and the present value of the future cash flows expected to be derived from the asset.
    
    If recoverable amount of assets is less than book value, the difference is recognized as impairment
    
    provision and expensed in current period.
    
    Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment
    
    testing, goodwill is considered together with the related assets group (s), i.e., goodwill is reasonably
    
    allocated to the related assets group (s) or each of assets group (s) expected to benefit from the
    
    synergies of the combination. An impairment loss is recognized if the recoverable amount of the assets
    
    group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment
    
    loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or
    
    sets of assets groups, and then to the other assets of the group pro-rata on the basis of the carrying
    
    amount of each asset (other than goodwill) in the group.
    
    The impairment is recognized in profit or loss for the period in which it is incurred and will not be
    
    reversed in any subsequent period.
    
    5.20 Long-term unamortized expenses
    
    The Long-term unamortized expenses are amortized evenly over the period of estimated earnings, and
    
    the long-term unamortized expenses of the Group are amortized over the following period:
    
    Amortization period
    
    Land requisition fee 50 years
    
    Land lease prepayment 50 years
    
    Greening fee 5-20 years
    
    Leasehold improvement 3-5years
    
    Other 3 years
    
    5.21 Employee remuneration
    
    5.21.1 Accounting treatments of short-term remuneration
    
    In an accounting period in which an employee has rendered service to the Group, the Group
    
    recognizes the actual long-term remuneration for that service as a liability, and includes in the current
    
    profits and losses or the related asset costs. Employee welfare expenses incurred by the Group shall be
    
    recorded into the current profits and losses or related asset costs according to the actual amount.
    
    Non-monetary employee benefits are measured at fair value.
    
    Social insurances such as medical insurance, injury insurance and pregnancy insurance, housing funds,
    
    labor union and employee education fees paid by the Group for employees, are recognized as relevant
    
    liability in the period in which the employees provide service, in accordance with the regulated
    
    recognition basis and percentage. The related expenditures are included in the current profits and
    
    losses or related asset costs.
    
    5.21.2 Accounting treatments of retired benefits
    
    Retired benefits of the Group are all predetermined provision plan.
    
    In the period in which the employees provide service, the Group recognize liability in accordance with
    
    the amounts to be paid calculated according to the predetermined provision plan, and the related
    
    expenditures are either included in cost of related assets or charged to profit or loss in the period when
    
    they are incurred.
    
    5.21.3 Accounting treatments of termination benefits
    
    When providing termination benefits to employees, the Group recognize employee benefits payroll
    
    resulting from termination benefits at the earlier of: the Group cannot unilaterally withdraw from the
    
    termination plan or the redundancy offer; the Group recognize relevant costs and expenses related to
    
    the payment of termination benefits in reconstructuring.
    
    5.22 Revenue
    
    5.22.1 Revenue from sale of goods
    
    Revenue from sale of goods is recognized when the Group has transferred to the buyer the significant
    
    risks and rewards of ownership of the goods. The Group retains neither continuing managerial
    
    involvement to the degree usually associated with ownership nor effective control over the goods sold.
    
    The amount of revenue can be measured reliably and it is probable that the associated economic
    
    benefits will flow to the Group. The associated costs incurred or to be incurred can be measured
    
    reliably.
    
    5.22.2 Revenue from rendering of services
    
    When the outcome of a transaction involving the rendering of services can be estimated reliably,
    
    revenue associated with the transaction shall be recognized by reference the stage of completion of the
    
    transaction at the reporting date. The outcome of a transaction can be estimated reliably.
    
    When the outcome of the transaction involving the rendering of services cannot be estimated reliably,
    
    revenue is recognized only to the extent of the costs incurred that will be recoverable, and the costs
    
    incurred are recognized as expenses for the period. When it is not probable that the costs incurred will
    
    be recovered, revenue is not recognized.
    
    5.23 Government grants
    
    Government grants are transfer of monetary assets and non-monetary assets from the government to
    
    the Group at no consideration. A government grant is recognized only when the Group can 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.
    
    5.23.1 Judgment basis and accounting treatments of government grant related to an
    
    asset
    
    A government grant related to an asset is recognized as deferred income, and evenly amortized to
    
    profit or loss over the useful life of the related asset.
    
    5.23.2 Judgment basis and accounting treatments of government grant related to income
    
    For a government grant related to income, if the grant is a compensation for related expenses or losses
    
    to be incurred in subsequent periods, the grant is recognized as deferred income, and recognized in
    
    profit or loss over the periods in which the related costs are recognized. If the grant is a compensation
    
    for related expenses or losses already incurred, the grant is recognized immediately in profit or loss for
    
    the period.
    
    A government grant related to the Group's daily activities is recognized in other income based on the
    
    nature of economic activities; a government grant is not related to the Group's daily activities is
    
    recognized in non-operating income and expenses.
    
    The Company's government loans with below-market rate of interest are directly paid to the Company,
    
    and the related low rate interest will write off related borrowing costs. The government loans with
    
    below-market rate of interest obtained by other subsidiaries of the Group are government loans, which
    
    is provided by local bureau of finance through bank with below-market rate of interest. The actual
    
    amount of the loan received by the Group recognized as borrowings, and the related borrowing costs
    
    are calculated according to the principal of the loan and the below-market rate.
    
    5.24 Deferred income tax assets/deferred income tax liabilities
    
    The income tax expenses include current income tax and deferred income tax.
    
    5.24.1 Current income tax
    
    On the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are
    
    measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
    
    5.24.2 Deferred income tax assets and deferred income tax liabilities
    
    For temporary differences between the carrying amounts of certain assets or liabilities and their tax
    
    base, or between the nil carrying amount of those items that are not recognized as assets or liabilities
    
    and their tax base that can be determined according to tax laws, deferred income tax assets and
    
    liabilities are recognized using the balance sheet liability method.
    
    Deferred tax is generally recognized for all temporary differences. Deferred income tax assets for
    
    deductible temporary differences are recognized to the extent that it is probable that taxable profits
    
    will be available against which the deductible temporary differences can be utilised. However, for
    
    temporary differences associated with the initial recognition of goodwill and the initial recognition of
    
    an asset or liability arising from a transaction (not a business combination) that affects neither the
    
    accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax
    
    asset or liability is recognized.
    
    For deductible losses and tax credits that can be carried forward, deferred income tax assets are
    
    recognized to the extent that it is probable that future taxable profits will be available against which
    
    the deductible losses and tax credits can be utilised.
    
    Deferred income tax liabilities are recognized for taxable temporary differences associated with
    
    investments in subsidiaries and associates, and interests in joint ventures, except where the Group is
    
    able to control the timing of the reversal of the temporary difference and it is probable that the
    
    temporary difference will not reverse in the foreseeable future. Deferred income tax assets arising
    
    from deductible temporary differences associated with such investments and interests are only
    
    recognized to the extent that it is probable that there will be taxable profits against which to utilise the
    
    benefits of the temporary differences and they are expected to reverse in the foreseeable future.
    
    On the balance sheet date, deferred income tax assets and liabilities are measured at the tax rates,
    
    according to tax laws, that are expected to apply in the period in which the asset is realised or the
    
    liability is settled.
    
    Current and deferred tax expenses or income are recognized in profit or loss for the period, except
    
    when they arise from transactions or events that are directly recognized in other comprehensive
    
    income or in shareholders' equity, in which case they are recognized in other comprehensive income or
    
    in shareholders' equity; and when they arise from business combinations, in which case they adjust the
    
    carrying amount of goodwill.
    
    On the balance sheet date, the carrying amount of deferred income tax assets is reviewed and reduced
    
    if it is no longer probable that sufficient taxable profits will be available in the future to allow the
    
    benefit of deferred income tax assets to be utilised. Such reduction in amount is reversed when it
    
    becomes probable that sufficient taxable profits will be available.
    
    5.24.3 Net off of income taxes
    
    When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to
    
    realise the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities
    
    are offset and presented on a net basis.
    
    When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred
    
    income tax assets and deferred income tax liabilities relate to income taxes levied by the same taxation
    
    authority on either the same taxable entity or different taxable entities which intend either to settle
    
    current tax assets and liabilities on a net basis or to realise the assets and liabilities simultaneously, in
    
    each future period in which significant amounts of deferred income tax assets or liabilities are
    
    expected to be reversed, deferred income tax assets and deferred income tax liabilities are offset and
    
    presented on a net basis.
    
    5.25 Leases
    
    Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
    
    risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
    
    5.25.1 Operating lease accounting treatments
    
    The Group as lessee under operating leases
    
    Operating lease payments are recognized on a straight-line basis over the term of the relevant lease,
    
    and are either included in the cost of related asset or charged to profit or loss for the period. Initial
    
    direct costs incurred are charged to profit or loss for the period.
    
    The Group as lessor under operating leases
    
    Rental income from operating leases is recognized in profit or loss on a straight-line basis over the
    
    term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalised
    
    when incurred, and are recognized in profit or loss on the same basis as rental income over the lease
    
    term. Other initial direct costs with an insignificant amount are charged to profit or loss in the period
    
    in which they are incurred. Contingent rents are charged to profit or loss in the period in which they
    
    actually arise.
    
    5.26 Changes in major accounting policies and accounting estimates
    
    5.26.1 Changes in major accounting policies
    
     Contentandreascohnaonfgeaccountingpolicy  Examinationandapprovalprocedure             Remarks
    Ithne2r0e1v7is,etdheAMccionuisnttriyngofSFtainnadnacredsisfsoured
    MEnetaesruprreismeesnNtoo.f2F2–inRaenccoiganliItniostnruamndents,
    ANcoc.2o3u–nTtirnagnSsftearnodafrFdisnafonrciEalnAtesrspertiss,es
    ANcoc.2o4un–tHinegdSgtianngdaanrddsAfcocroEunnttienrgprises
    SPtraensdenatradtsiofonroEfnFtienrapnrcisieaslINnost.3ru7m-ents                              IJnantuhaercyo1n,s2o0li1d9a,tetdhebaaclacnocuentsshereecteoinvable
    F(hineraenicniaaflteInrsrterfuemrreendtstoSatasn“dNaerdws”).From Approvedbythesecondmeetingofthe c2h3a7n,7g8e1d,1fr6o1m;tRheMdBef2er4r2e,d15in3c,0o8m3ettoaxRMB
    Jaacncouuarnyti1n,g2t0re1a9t,mthenetGinroaucpcocrodnadnuccetewditheighthBoardofDirectors.         a2s8s5e,t4s3w6,e2r5e9chtoanRgMedBfr2o8m6,5R2M9,B239;and
    tAhcecaobrodvinegnteowtlhyerleinvkisaegdesptaronvdiasridosn.s,no                             RthMeuBnd8i,0st0r8ib,9u8te2d,5p4r7oftiotwRMasBchangedfrom
    aindfjoursmtmaetinotnwdiullribnegmthaedceotmopthaerable                              8,005,703,605.
    pbeegriiondn.inTgheofutnhdiisstrreipbourtteidngprpoefriitosdatwtihlelbe
    rdeitfrfoeraecnticveelbyetawdejuesntetdhebnaseewdsotanntdhaerds
    aonfdimthpeleemxiesntitnatgiosnta.ndardsonthefirstday
    ANocctiocredoinngRteovtihsienrge,qPuririnemtinegnt&sinthe
    DGiesntreirbaultEinngteFrpinraisnecsiainlR2e0p1o9r(tCFaoirKmuaatifor
    [it2e0m19o]fN“ob.il6ls),riencethiveabballeanancedsahceceotu,nthtse
    rreecceeiivvaabbllee””ashnadll“abcecdoiuvnidtsedreicnetiova“bbliell”s;
    aacncdotuhnetsitepmayaobfl“eb”ilslhsapllaybaebdleivaidneddinto  AeigphptrhovBeodabrdyothfeDsierceoctnodrsm.eetingofthe iTmhpeacchtaonngethoefmacecrgoeurnatinndgtphoelinceythparosfnitoof
    “inbitlhlsepinacyoamblee”staantedm“eancct,otuhnetsitepmayoabfle”;                            theCompanyandtheowner'sequity.
    “exRp&enDseedxpeexnpseensd”itnuorteoinnlcyurrreefdleicntsththee
    raelssoeairncchluadnedsdtheveealmopomrteiznattipornocoefss,but
    stheelf-itdeemveolofp“emdainnatganemgiebnletaexsspeetnssleisst”e.din
    
    
    5.26.2 Changes in major accounting estimates
    
    Nil5.26.3 Particulars of first implementation of New Financial Instruments Standards, newincome standards, and new lease standards to adjust the first implementation of relateditems in the financial statements at the beginning of the year
    
    Consolidated Balance Sheet
    
    Unit: Yuan
    
              Item              December31,2018          January1,2019         Adjustedamount
     Billsreceivable                         288,667,988                                -288,667,988
     Accountsreceivable                      242,153,083              237,781,161             -4,371,922
     Receivablesfinancing                                          288,667,988            288,667,988
     aAsvsaeitlsable-for-salefinancial                 467,251                                   -467,251
     aOstsheetsrnon-current  financial                                      467,251              467,251
     Deferredincometaxassets                 285,436,259              286,529,239             1,092,980
     Undistributedprofit                     8,008,982,547             8,005,703,605             -3,278,942
     Totalowner’sequity                    9,606,099,365             9,602,820,423             -3,278,942
    
    
    Explanation for adjustment:
    
    Unit: Yuan
    
                          Book valuelisted      Impactofthe                      Bookvaluelisted
           Item         staacncdoarrddisngontoDtehceeomribgeirna3l1,FinNaenwcial  Ipmrepsaecnttaotfiocnhaonfgoetsheinraccordingtothenew
                              2018           ISntsatnrudmarednstfinancialstatements   standards2o0n19January1,
     aBcicllosuntrserceeciveiavbalbeleand             530,821,071                     -530,821,071
     Billsreceivable                             -288,667,988          288,667,988
     Accountsreceivable                            -4,371,922          242,153,083          237,781,161
     Receivablesfinancing                         288,667,988                            288,667,988
     fAinvaanilcaiballea-fsoser-tssale          467,251      -467,251
     Ofinthaenrcialassentosn-current                         467,251                              467,251
     Dasesfeetsrredincome  tax             285,436,259     1,092,980                            286,529,239
     Total                         816,724,581     -3,278,942                            813,445,639
    
    
    Balance Sheet of the Parent Company
    
    Unit: Yuan
    
          Item           December31,2018            January1,2019            Adjustedamount
     Billsreceivable                   39,885,254                                       -39,885,254
     rAeccceoivuanbtlse                 1,447,973                  1,447,973
     Rfineacneicvinabgles                                       39,885,254                39,885,254
     Teqoutaitlyowner’s              10,023,375,582               10,023,375,582
    
    
    Explanation for adjustment:
    
    Unit: Yuan
    
                          Book valuelisted      ImpactoftheNewImpactofchanges      Bookvaluelisted
           Item          accordingtotheoriginal     Financial    inpresentationof     accordingtothenewstandardsonDecember31,
                              2018           ISntsatnrudmarednstothsteartefmineanntcsialstandards2o0n19January1,
     aBcicllosuntrserceeciveiavbalbeleand              41,333,227                   -41,333,227
     Billsreceivable                              -39,885,254        39,885,254
     Accountsreceivable                                           1,447,973              1,447,973
     Receivablesfinancing                          39,885,254                             39,885,254
     Otherreceivables                1,025,643,356                                      1,025,643,356
     Total                        1,066,976,583                                      1,066,976,583
    
    
    5.27 Other
    
    Critical judgments in applying accounting policies and key assumptions and uncertainties in
    
    accounting estimates
    
    In the application of accounting policies as set out in Note 4, the Group is required to make judgments,
    
    estimates and assumptions about the carrying amounts of items in the financial statements that cannot
    
    be measured accurately, due to the internal uncertainties of the operating activities. These judgments,
    
    estimates and assumptions are based on historical experience of the Group's management as well as
    
    other factors that are considered to be relevant. Actual results may differ from these estimates.
    
    The Group periodically reviews the judgments, estimates and assumptions above on a going concern
    
    basis. For those changes in accounting policies that only affect current financial statements, the
    
    influences are recognized in current period. For those changes in accounting policies that affect both
    
    current and future financial statements, the influences are recognized in both current and prospective
    
    periods.
    
    Key assumption and uncertainties in accounting estimates
    
    The following are key assumptions for after balance sheet date event and other factors of uncertain
    
    estimation. They may cause material adjustment on balance sheet in following accounting period.
    
    Deferred income tax assets recognized by deductible loss
    
    Deferred income tax assets are recognized for all unused tax losses to the extent that it is probable that
    
    taxable profit will be available against which the losses can be utilized. Significant management
    
    judgment is required to determine the amount of deferred income tax assets that can be recognized,
    
    based upon the likely timing and level of future taxable profits together with future tax planning
    
    strategies.
    
    Depreciation of fixed assets
    
    The depreciation is calculated on the straight line basis to write-off the cost of each item of fixed
    
    assets to its residual value over its estimated useful life. The Group's management determines the
    
    estimated useful lives for its fixed assets. This estimate is based on the historical experience of the
    
    actual useful lives of fixed assets of similar nature and functions. If the previous estimates have
    
    significant changes, depreciation expenses will be adjusted in the future period.
    
    Impairment of long-term assets
    
    The Group assesses whether the recoverable amount is lower than the book value. If there are any
    
    indicators that the book value of non-current assets cannot be fully recoverable, impairment losses
    
    should be recorded.
    
    The recoverable amount is the higher of an asset's fair value less costs to sell and the present value of
    
    the future cash flows expected to be derived from an asset. As it is difficult for the Group to obtain
    
    the quoted market price of the assets (or assets group), the fair value of the assets cannot be reliably
    
    estimated. When estimating the present value of future cash flows, it is necessary to make important
    
    judgments about the output, selling price, related operating costs, discount rate used in calculating the
    
    present value of the asset (or asset group), etc. In estimating the recoverable amount, the Group uses
    
    all readily available information, including projections of production volumes, selling prices and
    
    associated operating costs based on reasonable and supportable assumptions.
    
    Inventory depreciation provision accrued based on net realizable value
    
    The inventories are measured on the lower of carrying value and net realizable value, and provision
    
    should be made for impairment on obsolete and slow moving inventories. The Group will reassess
    
    whether the net realizable value is lower than the carrying cost at the end of each year.
    
    Preparation for the measurement of the fair value of identifiable assets and liabilities of the
    
    acquiree from a business combination
    
    For the cost of business combination, the Group allocates the purchase price based on the fair value of
    
    the identifiable assets and liabilities of the acquiree on the date of acquisition. When measuring the fair
    
    value of the above identifiable assets and liabilities in accordance with the present value of future cash
    
    flow, the management of the Group needs to estimate the sales growth rate based on the supply and
    
    demand situation of the future market to forecast the cash flow, and consider to choose the appropriate
    
    discount rate for the discount. The management may use significant accounting estimates and
    
    judgments in the progress.
    
    6. Taxes
    
    6.1 The main taxes and tax rates are as follows:
    
     Taxcategory         Taxationbasis                      Taxrates
     Valueaddedtax       Levied on the balance between the  13%,  9%  6%  (Chinese),  20%
                        output tax calculated based on taxable  (France), 21% (Spain), 19% (Chile),
                        income and the input tax allowed to be  10%(Australia)
                        deducted incurrentperiod
     Consumptiontax      Leviedon taxableincome             10%,20%(Chinese)
     Citydevelopmenttax  Leviedon circulationtaxactuallypaid   7%(Chinese)
     Corporateincometax  Leviedon taxableincome             25%(Chinese), 33.3%(France), 28%
                                                          (Spain),   27%   (Chile),   30%
                                                          (Australia)
    
    
    6.2 Tax incentives and relative permit
    
    Ningxia Changyu Grape Growing Co., Ltd.("Ningxia Growing"), a subsidiary of the Group, whose
    
    principal activity is grape growing is incorporated in Ningxia Huizu Autonomous Region. According
    
    to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax Measures for
    
    Implementation, Ningxia Growing enjoys an exemption of corporate income tax.
    
    Yantai Changyu Grape Growing Co., Ltd.(" Grape Growing "), a branch of the Company, whose
    
    principal activity is grape growing is incorporated in Zhifu District, Yantai City, Shandong Province.
    
    According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax
    
    Measures for Implementation, Grape Growing enjoys an exemption of corporate income tax.
    
    Xinjiang Tianzhu Co., Ltd ("Xinjiang Tianzhu"), a subsidiary of the Company, is an enterprise of wine
    
    production and sales incorporated in Shihezi city, Xinjiang Weizu Autonomous. In accordance with the
    
    Notice on Tax Policy Issues concerning Further Implementation of the Western China Development
    
    Strategy (Cai Shui [2011] No.58), Xinjiang Tianzhu is qualified to enjoy preferential taxation policies,
    
    which means it can pay corporate income tax at a preferential rate of 15% for the period from 2015 to
    
    2020.
    
    Xinjiang Babao Baron Chateau Co., Ltd. ("Shihezi Chateau"), a subsidiary of the Company, is an
    
    enterprise of wine production and sales incorporated in Shihezi city, Xinjiang Weizu Autonomous. In
    
    accordance with the Notice on Tax Policy Issues concerning Further Implementation of the Western
    
    China Development Strategy (Cai Shui [2011] No.58), Shihezi Chateau is qualified to enjoy
    
    preferential taxation policies, which means it can pay corporate income tax at a preferential rate of
    
    15% for the period from 2015 to 2020.
    
    7. Notes to items in the consolidated financial statement
    
    7.1 Monetary capital
    
    Unit: Yuan
    
                Item                      Endingbalance                 Beginningbalance
    Cash onhand                                          70,198                       114,335
    Bank deposit                                     1,756,744,006                   1,382,399,749
    Other monetarycapital                                 91,818,749                     93,186,393
    Total                                           1,848,632,953                   1,475,700,477
    
    
    As at June 30, 2019, the restricted bank deposit details are listed as follows:
    
    Unit: Yuan
    
                Item                      Endingbalance                 Beginningbalance
     Housingfundoftheunit                                2,647,877                     2,611,350
     Total                                             2,647,877                     2,611,350
    
    
    As at June 30, 2019, the details of other monetary funds are listed as follows:
    
    Unit: Yuan
    
                Item                      Endingbalance                 Beginningbalance
     CPlheadnggeyoufWfixineedRdeepseoasritcshb,yYantai
     DLtedv.e(l“oRp&mDenCtaonmdpManayn”u)factureCo.,                        46,100,000                    46,100,000
     Gofucarreadnitteeddepositspaidfortheletter                      44,540,850                    44,540,850
     AccountbalanceofAlipay                               1,042,367                     2,483,816
     Guarantymoneyfortheunitcard                            125,532                       51,727
     GuarantymoneyforICBCplatform                           10,000                       10,000
     Total                                            91,818,749                    93,186,393
    
    
    As at June 30, 2019, the bank deposits of the Group including short-term fixed deposits ranging from
    
    3 months to 12 months amounted to RMB 180,439,250 Yuan (December 31, 2018: RMB 173,042,400
    
    Yuan), with the interest rates ranging from 1.40% to 2.03%.
    
    7.2 Bills receivable
    
    7.2.1 Classification of bills receivable
    
    Unit: Yuan
    
                    Type                      Endingbalance             Beginningbalance
    Bank acceptance                                                               288,667,988
    Trade acceptance
    Total                                                                       288,667,988
    
    
    7.2.2 Provision for bad debts accrued, withdrawn or transferred back in this period
    
    Nil7.2.3 Bills receivable pledged by the Company at the end of period
    
    Niln7.o2t.4yeBtimllsatruerceedivaasbloef ethnedobrasleadncoershdeisectoduantteed by the Company at the end of period but
    
    Unit: Yuan
    
                 Item             Amountterminatingrecognitionattheend Amountnotterminatingrecognitionofperiod                  attheendofperiod
    Bank acceptance                                      275,760,494
    Trade acceptance
    Total                                              275,760,494
    
    
    d7.e2f.a5ulBt iollfsdrreacweeivraabtlethreeecnladssoiffipeedriaosd accounts receivable by the Company due to the
    
    Nil7.2.6 Bills receivable actually cancelled after verification in this period
    
    Nil7.3 Accounts receivable7.3.1 Accounts receivable disclosed by type
    
    Unit: Yuan
    
                            Ending balance                           Beginningbalance
                  Bookbalance     Provisionforbad                           ProvisionforbadTypedebts                 Bookbalance        debts
                Amount  Proportion Amount  Accrued Bookvalue  Amount  ProportionAmount Accrued  Bookvalue
                                      proportion                              proportion
    rAeccceoivuanbtlsefor
    pwrhoivcihsionfor
    bacacdrudeedbtosnisa                                    242,153,083   100%              242,153,083
    sbiansgisleitem
    Including:
    rAeccceoivuanbtlsefor
    pwrhoivcihsionfor
    bacacdrudeedbtosnisa191,269,049    100% 5,137,857    2.78%186,131,192
    bcoamsisbined
    Including:
    rAeccceoivuanbtlsefor
    pwrhoivcihsionfor
    abcacdrudeedbtbsyis191,269,049    100% 5,137,857    2.78%186,131,192
    cferaedtuitrersisk
    Total       191,269,049    100% 5,137,857    2.78%186,131,192242,153,083   100%              242,153,083
    
    
    Provision for bad debts accrued on a combined basis:
    
    Unit: Yuan
    
            Name                                   Endingbalance
                               Bookbalance         Provisionforbaddebts       Accruedproportion
    Aprcocvoiusinotnsrfoecrebivadabdleebftosriswhich     191,269,049              5,137,857                 2.78%
    accrued bycreditriskfeatures
    Total                              191,269,049              5,137,857 --
    
    
    Disclosed by age: Unit: Yuan
    
                       Age                                   Endingbalance
    Within 1year(including)                                                          180,854,504
    1-2 years                                                                      8,978,048
    2-3 years                                                                      1,199,269
    Over 3years                                                                     237,228
    Total                                                                       191,269,049
    
    
    As at June 30, 2019, the accounts receivable with ownership restrictions were RMB 31,134,017 Yuan
    
    (December 31, 2018: RMB 52,015,032 Yuan). Please refer to Note 7.18 for details.
    
    7.3.2 Provision for bad debts accrued, withdrawn or transferred back in this period
    
    Provision for bad debts accrued in this period:
    
    Unit: Yuan
    
                    Beginning   amAodujnutsitnedthe               Changesinthisperiod
                    balanceof      first        Beginning
         Type       thfeinoarnigciianlalimopfletmheeNnteawtionbaylaenacreaoftfertheAccrued  Withodrrawn Cancelled   bEanldanincge
                   insstatrnudmarednstsInFsitnruanmceianltsadjustment             tranbsafcekrred
                               Standards
     rAeccceoivuanbtlsefor
     fwohribcahdpdroevbitssioisn         4,371,922       4,371,922   765,935                    5,137,857
     aricsckrufeeadtubryescredit
     Total                        4,371,922       4,371,922   765,935                    5,137,857
    
    
    There were no provision for bad debts withdrawn or transferred back in this period.
    
    7.3.3 Accounts receivable actually cancelled after verification in this period
    
    Nil7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the endingbalance
    
    Unit: Yuan
    
            Unit          Relationshipwiththe                                  PercentageintotalCompanyAmount           Period       accountsreceivable
    SNuopnegrgmoanrgksehta(nGgroup)Co.,       Thirdparty            10,077,717    Within1year                5.3%
    Ltd.
    Suguo SupermarketCo.,Ltd.    Thirdparty             7,168,620    Within1year                3.7%
    PViir?ceadsosyBodegasLas        Thirdparty             6,917,840    Within1year                3.6%
    HLioalndhinugasSCupoe.,rLmtadr.ketThirdparty             5,408,819    Within1year                2.8%
    MARKS ANDSPENCER      Thirdparty             5,365,322    Within1year                2.8%
    Total                        --                34,938,318        --                   18.3%
    
    
    7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
    
    Nil7.3.6 Accounts receivable transferred and included in assets and liabilities
    
    Nil
    
    7.4 Receivables financing
    
    Unit: Yuan
    
                Item                     Endingbalance                 Beginningbalance
    Bank acceptance                                    372,281,872
                Total                               372,281,872
    
    
    7.5 Advance payment
    
    7.5.1 Advance payment listed by age
    
    Unit: Yuan
    
              Age                     Endingbalance                    Beginningsum
                                Amount         Proportion           Amount        Proportion
    Within 1year                      3,490,928            100%            4,219,949       100%
    1-2 years
    2-3 years
    More than3years
    Total                            3,490,928       --                   4,219,949     --
    
    
    7.5.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
    
    ending balance
    
    Unit: Yuan
    
                                                                                Percentage
            Categoryofclient         Relationshipwith  Amount    Age    Reasonforunsettlement  inthetotal
                                   theGroup                                       advance
                                                                                payment%
    Ningxia VangarieWineCo.,Ltd.        Thirdparty     600,000 Within1 Failuretoreceivethegoods    17.2%
                                                       year
    YantaiPowerSupplyCompanyofState                       Within1     Prepaidelectricity
    Grid ShandongElectricPower          Thirdparty     500,000   year       purchasingfund       14.3%
    Company
    DONELLI VINIS.P.A.              Thirdparty     463,523 Within1 Failuretoreceivethegoods    13.3%
                                                       year
    YEDAThermal PowerConstruction&    Thirdparty     250,545 Within1 Failuretoreceivethegoods    7.2%
    Installation EngineeringCo.,Ltd.                             year
    YantaiDeyiHardwareMechanical&      Thirdparty     192,045 Within1 Failuretoreceivethegoods    5.5%
    Electrical Co.,Ltd.                                      year
                Total                  --       2,006,113    --            --            57.4%
    
    
    7.6 Other receivables
    
    Unit: Yuan
    
                Item                     Endingbalance                 Beginningbalance
    Interest receivable                                    2,099,109                     1,332,681
    Dividends receivable
    Other receivables                                    26,519,874                    21,303,405
    Total                                            28,618,983                    22,636,086
    
    
    7.6.1 Interest receivable
    
    Unit: Yuan
    
                Item                     Endingbalance                 Beginningbalance
    Fixed deposit                                        2,099,109                    1,332,681
    Entrusted loan
    Bond investment
    Total                                              2,099,109                    1,332,681
    
    
    7.6.2 Other receivables
    
    7.6.2.1 Other receivables classified by nature
    
    Unit: Yuan
    
                       Nature                      Endingbookbalance     Beginningbookbalance
    Deposit andguarantymoneyreceivable                            9,991,516              10,453,624
    Imprest receivable                                          2,776,485               2,274,038
    Accounts receivablefromrelatedparties                            1,911,880                813,440
    Consumption taxandadded-valuetaxexportrebate                     9,651,893               6,273,882
    Other                                                   2,188,100               1,488,421
    Total                                                  26,519,874              21,303,405
    
    
    7.6.2.2 Disclosed by age
    
    Unit: Yuan
    
                       Age                                   Endingbalance
    Within 1year(including)                                                          15,284,516
    1-2 years                                                                      1,162,933
    2-3 years                                                                      8,302,579
                       Age                                   Endingbalance
    More than3years                                                                1,769,846
    Total                                                                        26,519,874
    
    
    7.6.2.3 Provision for bad debts accrued, withdrawn or transferred back in this period
    
    TtrahnespferrorveidsiboanckfoirnbtahdisdpeebrtisodacwcaruseRdMinBt0hiYsupaenr.iod was RMB 0 Yuan; and that withdrawn or
    
    7.6.2.4 Other receivables actually cancelled after verification in this period
    
    Nil7.6.2.5 Other receivables collected by the borrowers of top 5 units ranked by the endingbalance
    
    Unit: Yuan
    
                                      Ending                Percentageintotal   EndingbalanceofUnitNature     balance       Age     endingbalanceofother  provisionforbadaccountsreceivable       debts
    AYsEsDocAiatioCnonstructionIndustryCmguooannrsaetnyrutyction7,709,477 Within3years            29.10%
    YLtadn.taPiriGntoindgHBorarsnechPackingCo.,rpLeaecyaemsieveanbtle1,626,880 Within1year              6.10%
    YWainnteaiCZo.h,oLntgdy.a Medical HealthLpreaecyaemsieveanbtle285,000 Within1year              1.10%
    YEDAFinance Bureau       Guarantymoney   198,056 Within1year              0.70%
    YofanSttaaitePoGwriedrSShuapnpdloyngCoEmlepcatrniycDeposit          80,000 Within1year              0.30%
    Power Company
    Total                       --        9,899,413     --                 37.30%
    
    
    7.6.2.6 Accounts receivable involving government subsidies
    
    Nil
    
    a7.s6s.e2t.s7 Other receivables that are terminated for recognition due to transfer of financial
    
    Nil
    
    7.6.2.8 Other receivables transferred and then included in assets and liabilities
    
    Nil
    
    7.7 Inventories
    
    7.7.1 Inventory classification
    
    Unit: Yuan
    
                              Endingbalance                       Beginningbalance
         Item        Bookbalance   DpeprorevcisiaiotinonBookvalue   Bookbalance   DpeprorevcisiaiotinonBookvalue
    Raw materials         88,705,179               88,705,179    67,267,035                67,267,035
    Goods inprocess     1,837,958,108            1,837,958,108  1,787,819,923              1,787,819,923
    Commodity stocks     698,652,646   18,534,497   680,118,149   894,187,725    24,683,226   869,504,499
    Total             2,625,315,933   18,534,497  2,606,781,436  2,749,274,683    24,683,226  2,724,591,457
    
    
    7.7.2 Inventory depreciation provision
    
    Unit: Yuan
    
                                  Increase inthisperiod        Decreaseinthisperiod
          Item        Beginningbalance                                           EndingbalanceAccrualOther    Transferbackorwrite-offOther
    Raw materials
    Goods inprocess
    Commodity stocks      24,683,226                           6,148,729               18,534,497
    Total               24,683,226                           6,148,729               18,534,497
    
    
    7.8 Other current assets
    
    Unit: Yuan
    
                Item                     Endingbalance                 Beginningbalance
    Prepaid corporateincometax                            70,523,939                    24,077,323
    Deductible inputtax                                 229,478,097                   233,087,707
    Rent tobeamortized                                    416,865                     1,511,366
    Total                                           300,418,901                   258,676,396
    
    
    7.9 Other non-current financial assets
    
    Unit: Yuan
    
                Item                     Endingbalance                 Beginningbalance
    Other                                              515,922
    Total                                              515,922
    
    
    7.10 Investment real estate
    
    7.10.1 Investment real estate by cost measurement method
    
    Unit: Yuan
    
            Item            Hbouuilsdeisnagnsd Landuseright       Conpsrtorugcretisosnin          Total
    Ⅰ Originalbookvalue
      1.Beginningbalance          70,954,045                                          70,954,045
      2.Increaseinthisperiod
        2.1Outsourcing
    inven2to.2riTesra\fnixsfeedrainssfertosm\
    construction inprogress
    increa2s.3eBusinessmerger
      3.Decreaseinthisperiod
        3.1Disposal
        3.2Othertransferout
      4.Endingbalance            70,954,045                                          70,954,045
    ⅡdepAreccciautmiounla&teadccumulated
    amortization
      1.Beginningbalance          39,381,556                                          39,381,556
      2.Increaseinthisperiod        1,012,019                                           1,012,019
    amor2ti.z1aAtiocncrualor              1,012,019                                           1,012,019
      3.Decreaseinthisperiod
        3.1Disposal
        3.2Othertransferout
      4.Endingbalance            40,393,575                                          40,393,575
    Ⅲ Impairmentprovision
      1.Beginningbalance
      2.Increaseinthisperiod
        2.1Accrual
      3.Decreaseinthisperiod
        3.1Disposal
        3.2Othertransferout
      4.Endingbalance
    Ⅳ Bookvalue
      1.Endingbookvalue          30,560,470                                          30,560,470
      2.Beginningbookvalue        31,572,489                                          31,572,489
    
    
    7.11 Fixed assets
    
    Unit: Yuan
    
                Item                     Endingbalance                 Beginningbalance
    Fixed assets                                     5,684,612,653                  5,749,731,667
    Disposal offixedassets
    Total                                          5,684,612,653                  5,749,731,667
    
    
    7.11.1 Particulars of fixed assets
    
    Unit: Yuan
    
            Item            HousesandbuildingsMachineryequipment   Constructiontools         Total
    Ⅰ Originalbookvalue:
      1.Beginningbalance        4,761,426,425       2,665,798,814         26,580,639       7,453,805,878
      2.Increaseinthisperiod        33,949,084         48,642,164          1,281,845         83,873,093
        2.1Acquisition             4,174,052         13,254,325          1,281,845         18,710,222
    const2ru.2ctTiorannisnfeprroingrferossm29,775,032         35,387,839                          65,162,871
    increa2s.3eBusinessmerger
      3.Decreaseinthisperiod        5,422,920          2,867,114           456,453          8,746,487
    retire3m.1enDtisposalor             5,422,920          2,867,114           456,453          8,746,487
      4.Endingbalance          4,789,952,589       2,711,573,864         27,406,031       7,528,932,484
    ⅡdepAreccciautmiounlated
      1.Beginningbalance         621,266,769       1,062,064,237         20,743,205       1,704,074,211
      2.Increaseinthisperiod        67,239,979         79,376,506          1,071,000        147,687,485
        2.1Accrual               67,239,979         79,376,506          1,071,000        147,687,485
      3.Decreaseinthisperiod        4,489,447          2,518,788           433,630          7,441,865
    retire3m.1enDtisposalor             4,489,447          2,518,788           433,630          7,441,865
      4.Endingbalance           684,017,301       1,138,921,955         21,380,575       1,844,319,831
    Ⅲ Impairmentprovision
      1.Beginningbalance
      2.Increaseinthisperiod
        2.1Accrual
      3.Decreaseinthisperiod
    retire3m.1enDtisposalor
      4.Endingbalance
    Ⅳ Bookvalue
      1.Endingbookvalue        4,105,935,288       1,572,651,909          6,025,456       5,684,612,653
      2.Beginningbookvalue      4,140,159,656       1,603,734,577          5,837,434       5,749,731,667
    
    
    A35s3a,0t1J3u,n6e1330Y,u2a0n1(9D, ethceemnbeet rv3al1u,e2o0f18th: eRfMixBed4a1s2s,e0t0s6w,4i2th1 oYwunaner)s. hPilpearseestrriecfteirontos wNaosteR7M.5B1
    
    for details.
    
    7.11.2 Particulars of temporarily idle fixed assets
    
    Unit: Yuan
    
           Item        Originalbook    Accumulated     Depreciationvaluedepreciation       reserves       Bookvalue       Remarks
    Tasesmetpsorarilyidlefixed     124,758,075       67,762,891                   56,995,184
    
    
    7.11.3 Particulars of fixed assets under finance leases
    
    Nil7.11.4 Fixed assets under operating lease
    
    Unit: Yuan
    
                        Item                                  Endingbookvalue
    Machinery equipment                                                               115,720
    
    
    7.11.5 Particulars of fixed assets without property certificates
    
    Unit: Yuan
    
                         Item                       Bookvalue   Reasonfornotreceivingtheproperty
                                                                      certificate
    Industrial ProductionCenteroftheR&DCompany             1,733,732,977        Undertransaction
    Dormitory Building,MainBuildingandReceptionBuildingof      280,709,011        Undertransaction
    Chang’an Chateau
    European Town,MainBuildingandServiceBuildingofBeijing      184,687,307        Undertransaction
    Chateau
    Main BuildingofYantaiChateauChangyuTinlot                81,685,892        Undertransaction
    Fermentation WorkshopandWineStorageWorkshopofXinjiang      17,499,421        Undertransaction
    Tianzhu
    Office BuildingandPackagingWorkshopofIcewineValley          9,044,465        Undertransaction
    Wine-making WorkshopofChangyu(Jingyang)                  4,017,018        Undertransaction
    Office Building,LaboratoryBuildingandWorkshopof             3,572,175        Undertransaction
    Fermentation Center
    Finished GoodsWarehouseandWorkshopofKylinPackaging        2,351,511        Undertransaction
    Office BuildingofGuangxiGuilinOfficeandOfficeBuildingof       1,110,076        Undertransaction
    Shanxi DatongOffice
    Total                                           2,318,409,853        Undertransaction
    
    
    7.12 Construction in progress
    
    7.12.1 Particulars of construction in progress
    
                                        Endingbalance                 Beginningbalance
                Item            Bookbalance Impairment  Bookvalue  Bookbalance Impairment  Bookvalue
                                          provision                      provision
    Research, Development&Manufacture
    Center (“ChangyuWineCity         672,975,492          672,975,492  608,553,617          608,553,617
    Complex”)
    Construction ProjectofChang’an       17,537,828           17,537,828   39,793,893           39,793,893
    Chateau
    Construction ProjectofNingxia        47,371,353           47,371,353   47,163,863           47,163,863
    Chateau
    Construction ProjectofShihezi          379,517             379,517   23,664,124           23,664,124
    Chateau
    Construction ProjectofSalesCompany   19,145,181           19,145,181   17,985,882           17,985,882
    Construction ProjectsofOther         32,463,002           32,463,002   22,135,212           22,135,212
    Companies
    Total                         789,872,373          789,872,373  759,296,591          759,296,591
    
    
    7.12.2 Changes of major construction in progress in this period
    
    Unit: Yuan
    
                                                    Transferred    Other            Proportionof  Accumulative    Including:    Capitalization
            Item           Budget      Beginning    Increasein   tofixed   decreasein Endingbalance accumulative   capitalized   capitalizedamount  ratioofinterest    Capitalsource
                                   balance     thisperiod  assetsinthis  thisperiod           projectinputin   amountof   ofinterestinthis   inthisperiod
                                                      period                      budget      interest       period
    Changyu WineCity     4,505,780,000  608,553,617 105,008,609 30,903,286 9,683,448 672,975,492    76.60%              16,954,039  1.20%and   Loiannsstiftourtmionfsinaanndcial
    Complex                                                                                                    4.3%      self-raisedfunds
    Construction Projectof    620,740,000   39,793,893  7,523,270 29,779,335          17,537,828    109.90%                                  Self-raisedfunds
    Chang’an Chateau
    Construction Projectof    780,000,000   23,664,124  4,615,627   138,172 27,762,062    379,517    96.90%                                  Self-raisedfunds
    Shihezi Chateau
    Construction Projectof    161,350,000   17,985,882  1,262,622   103,323          19,145,181    98.50%                                  Self-raisedfunds
    Sales Company
    Construction Projectof     41,415,000   47,163,863   207,490                  47,371,353    102.60%                                  Self-raisedfunds
    Ningxia Chateau
    Total               6,109,285,000  737,161,379 118,617,618 60,924,11637,445,510 757,409,371    --        --        16,954,039                 --
    
    
    As at June 30, 2019, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was made.
    
    7.13 Productive biological assets
    
    7.13.1 Productive biological assets by cost measurement method
    
    Unit: Yuan
    
                  Item                             Plantation                    Total
                                         Immature            Mature
    Ⅰ Originalbookvalue
      1. Beginningbalance                         13,837,608          235,246,042       249,083,650
      2. Increaseinthisperiod                       -4,798,454            9,593,745         4,795,291
        2.1Outsourcing
        2.2Selfcultivation                          2,388,310            2,406,981         4,795,291
       The immatureturntothemature                 -7,186,764            7,186,764
      3. Decreaseinthisperiod
        3.1Disposal
        3.2Other
      4.Endingbalance                            9,039,154          244,839,787       253,878,941
    Ⅱ Accumulateddepreciation
      1. Beginningbalance                                           39,817,277        39,817,277
      2. Increaseinthisperiod                                          6,448,225         6,448,225
        2.1Accrual                                                 6,448,225         6,448,225
      3. Decreaseinthisperiod
        3.1Disposal
        3.2Other
      4.Endingbalance                                              46,265,502        46,265,502
    Ⅲ Impairmentprovision
      1. Beginningbalance
      2. Increaseinthisperiod
        2.1Accrual
      3. Decreaseinthisperiod
        3.1Disposal
        3.2Other
      4.Endingbalance
    Ⅳ Bookvalue
      1. Endingbookvalue                          9,039,154          198,574,285       207,613,439
      2. Beginningbookvalue                       13,837,608          195,428,765       209,266,373
    
    
    As at June 30, 2019, no ownership of the biological assets was restricted.
    
    As at June 30, 2019, there was no indication for impairment of biological assets of the Group, so no
    
    provision was made.
    
    7.14 Intangible assets
    
    7.14.1 Particulars of intangible assets
    
    Unit: Yuan
    
             Item            Landuseright     Softwareuseright      Trademark          Total
    Ⅰ Originalbookvalue
       1.Beginningbalance           528,252,911         75,822,057       170,068,735        774,143,703
       2. Increaseinthisperiod            16,176           107,993                         124,169
         2.1Acquisition                16,176           107,993                         124,169
         2.2 InternalR&D
         2.3 Businessmerger
    increase
       3. Decreaseinthisperiod
         3.1 Disposal
       4.Endingbalance             528,269,087         75,930,050       170,068,735        774,267,872
    Ⅱ Accumulatedamortization
       1.Beginningbalance            78,070,910         26,722,815       13,876,519        118,670,244
       2.Increaseinthisperiod          5,231,260         3,185,493          21,989          8,438,742
         2.1Accrual                5,231,260         3,185,493          21,989          8,438,742
       3.Decreaseinthisperiod
         3.1 Disposal
       4.Endingbalance              83,302,170         29,908,308       13,898,508        127,108,986
    Ⅲ Impairmentprovision
       1.Beginningbalance
       2.Increaseinthisperiod
         2.1Accrual
       3.Decreaseinthisperiod
         3.1 Disposal
       4.Endingbalance
    Ⅳ Bookvalue
      1.Endingbookvalue           444,966,917         46,021,742       156,170,227        647,158,886
      2.Beginningbookvalue         450,182,001         49,099,242       156,192,216        655,473,459
    
    
    ARMs aBt J2u1n5e,23802,,2920149Y, uthaen n(eDtevcaelmuebeorf 3th1e, i2n0ta1n8g: iRblMe Bass2e1ts8,w07it0h,4o1w4nYerusahnip). rPesletraiscetiorenfserwatos
    
    Note 7.51 for details.
    
    7.14.2 Particulars of land use right of that not receiving the property certificate
    
    Nil7.15 Goodwill
    
    Unit: Yuan
    
     Name oftheinvested  Beginning     Increaseinthisperiod       Decreaseinthisperiod
     unitormatterforming   balance   Formedbybusiness                               Endingbalance
         goodwill                               Other     Disposal      Othermerger
    Etablissements Roullet
    Fransac (“Roullet      13,112,525                                                  13,112,525
    Fransac”)
    Dicot Partners,S.L     92,391,901                                                  92,391,901
    (“Atrio Group”)
    Societe Civile
    Argricole DuChateau   15,761,440                                                  15,761,440
    De Mirefleurs
    (“Mirefleurs”)
    Indomita Wine         6,870,115                                                  6,870,115
    Company Chile,SpA
    Kilikanoon Estate,      37,063,130                                                  37,063,130
    Australia
          Total        165,199,111                                                 165,199,111
    
    
    7.16 Long-term unamortized expenses
    
    Unit: Yuan
    
         Item       Beginningbalance   Increaseinthis  Amortizationinthis  Otherdecrease    Endingbalance
                                    period          period
    Land leasefees          54,217,763                     1,073,811                    53,143,952
    Land acquisition         43,427,739                      215,293                    43,212,446
    fees
    Afforestation fees       141,224,472       9,683,449       4,615,467                   146,292,454
    Renovation costs           775,647      27,762,062        476,300                    28,061,409
    Other                 4,994,795       1,134,446        281,791                     5,847,450
    Total                244,640,416      38,579,957       6,662,662                   276,557,711
    
    
    pRreomgraerskss:wTasheRMamBou3n8t,2t3r4an,3s5fe6rrYeudanto. long-term unamortized expenses from construction in
    
    7.17 Deferred income tax assets/liabilities
    
    7.17.1 Un-offset deferred income tax assets
    
    Unit: Yuan
    
                                            EndingBalance              BeginningBalance
                   Item                 DteemdpuoctriabrlyeDeferredincome    DteemdpuoctriabrlyeDeferredincome
                                       difference      taxassets      difference      taxassets
    Unrealized profitsfrominter-company           383,079,453     95,769,863    602,476,583    150,619,145
    transactions
    Unpaid bonus                           107,118,804     26,808,863    141,808,257     35,485,814
    Dismission welfare                        21,108,526      5,277,132     26,186,243      6,546,561
    Asset impairmentprovision                   23,672,354      5,918,088     24,683,226      6,170,807
    Deductible loss                          326,241,084     83,564,280    262,937,999     67,566,387
    Deferred income                          78,596,149     17,132,928     86,227,293     18,868,963
    Asset valuationimpairment                     649,811       175,449       661,415       178,582
    Total                                 940,466,181    234,646,603   1,144,981,016    285,436,259
    
    
    7.17.2 Un-offset deferred income tax liabilities
    
    Unit: Yuan
    
                                            EndingBalance              BeginningBalance
                   Item                 teTmaxpaobraleryDeferredincome    teTmaxpaobraleryDeferredincome
                                       difference     taxliabilities     difference     taxliabilities
    Assets appraisalappreciationinbusiness          69,392,888     18,629,612     81,338,130     22,010,647
    merger undernon-commoncontrol
    Total                                  69,392,888     18,629,612     81,338,130     22,010,647
    
    
    7.17.3 Details of unconfirmed deferred income tax assets
    
    Unit: Yuan
    
                   Item                      Endingbalance              Beginningbalance
    Deductable temporarydifference
    Deductible loss                                       157,722,738                 171,430,831
    Total                                             157,722,738                 171,430,831
    
    
    7.17.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
    
    Unit: Yuan
    
           Year             Endingsum         Beginningsum               Remark
    2020                          45,960,766          45,960,766
    2021                          82,685,213          82,685,213
    2022                          14,362,787          14,362,787
    2023                           6,987,182          21,110,792
    2024                           7,726,790
    Total                         157,722,738         164,119,558              --
    
    
    7.18 Short-term loans
    
    7.18.1 Classification of short-term loans
    
    Unit: Yuan
    
                  Item                      Endingbalance               Beginningbalance
    Pledge loan
    Mortgage loan                                       65,507,517                   79,467,832
    Guaranteed loan                                      7,145,835                    3,331,870
    Fiduciary loan                                      605,517,315                  605,202,708
    Total                                            678,170,667                  688,002,410
    
    
    AresceaitvaJubnleeo3f0E, U20R193,,9th8e2,m86o0rt(geaqgueivlaolaennst rtoefRerMreBd t3o1a,1l3o4a,n01o7f Yfaucatonr)inthgatbHusaicnieesnsdfaoryaVcicnoeudnotss
    
    SMaabraqdueelsl, dSe.lAA. t(rDioe,ceSm.Lb.eUr. 3(1“,M2a0r1q8u:esRdMelBA5t2ri,o0”1)5,t0r3an2saYcuteadn),inasluocahn boafnkUsSaDs 5B,a0n0c0o,00d0e
    
    (freoqmuivBaBleVntAtobaRnMk Bby3m4,o3r7tg3a,5g0e0ofYiutsanf)ixtehdatasIsnedtosmoiftaCLWPin2e,9C31o,m85p4a,n0y00Ch(eiqleu,ivSaplAentbotorrRowMeBd
    
    r2e9f,e9r0re4d,9t1o1aYlouaann)bo(rDroewceemdbbeyr th3e1,C2o0m1p8a:nyRMfroBm2A7u,4s5tr2a,l8ia00&YNueawn)Z. eTalhaendguBaarnaknitnegedwiltohana
    
    gYuuaarna)nt(eDeefcoermKbielrik3a1n,o2o0n18E:stRaMte,BA3u,s3t3ra1l,i8a7o0fYAuUanD).1,483,893 (equivalent to RMB 7,145,835
    
    7.19 Accounts payable
    
    7.19.1 List of accounts payable
    
    Unit: Yuan
    
                  Item                      Endingbalance               Beginningbalance
    Trade accountspayable                               539,459,878                 713,572,881
    Total                                           539,459,878                 713,572,881
    
    
    7.19.2 Explanation of significant accounts payable aged more than one year
    
    As at June 30, 2019, there were no significant accounts payable aged more than one year.
    
    7.20 Advances from customers
    
    7.20.1 List of advances from customers
    
    Unit: Yuan
    
                   Item                       Endingsum                Beginningsum
    Advances fromcustomers                                177,549,080                 226,075,244
    Total                                             177,549,080                 226,075,244
    
    
    7.20.2 Advances from customers of significant amount aged more than one year
    
    As at June 30, 2019, the Company had no advances from customers of significant amount
    
    aged more than one year.
    
    7.21 Employee remunerations payable
    
    7.21.1 List of employee remunerations payable
    
    Unit: Yuan
    
               Item             Beginningbalance  Increaseinthis   Decreaseinthis     Endingbalance
                                                period         period
    1. Short-termremuneration              185,893,109    214,884,524      245,100,514        155,677,119
    2. Post-employmentwelfare–defined         224,865     27,605,713       27,149,855           680,723
    contribution plan
    3. Dismissionwelfare                  26,186,243      1,310,247        6,387,964         21,108,526
    4.Other welfareduewithinoneyear
    Total                            212,304,217    243,800,484      278,638,333        177,466,368
    
    
    7.21.2 List of short-term remunerations
    
    Unit: Yuan
    
              Item             Beginningbalance     Increaseinthis    Decreaseinthis   Endingbalance
                                                  period          period
    1. Salaries,bonuses,allowances            187,685,990      188,388,623      215,640,569     160,434,044
    and subsidies
    2. Staffwelfare                        3,014,288       4,969,229       7,875,107        108,410
    3. Socialinsurancecharges                  461,095      14,314,931       14,435,562        340,464
    Including: Medicalinsurance                460,440      12,510,735       12,656,526        314,649
            Injuryinsurance                    655        914,251         889,091         25,815
            Maternityinsurance                             889,945         889,945
    4. Housingfund                          52,510       6,147,006       6,191,272          8,244
    5. Unionfeeandstaffeducation             1,914,079       1,064,735       1,033,635       1,945,179
    fee
    6.    Short-term   compensated
    absences
    7. Short-termprofit-sharingplan
    Minus:   Those  divided  into           7,234,853                       75,631       7,159,222
    non-current assets
    Total                             185,893,109      214,884,524      245,100,514     155,677,119
    
    
    7.21.3 List of defined contribution plan
    
    Unit: Yuan
    
              Item             Beginningbalance       Increase        Decrease      Endingbalance
    1. Basicendowmentinsurance               224,533      26,914,033       26,457,843        680,723
    2. Unemploymentinsurance                    332        691,680         692,012
    3. Enterpriseannuitypayment
    Total                                224,865      27,605,713       27,149,855        680,723
    
    
    7.21.4 Dismission welfare
    
    Unit: Yuan
    
                Item             Beginningbalance     Increase         Decrease      Endingbalance
    1. Compensationforserveroflabor                         1,275,387          1,275,387           -
    relation
    2. Compensationforearlyretirement         26,186,243         34,860          5,112,577    21,108,526
                Item             Beginningbalance     Increase         Decrease      Endingbalance
    Total                              26,186,243       1,310,247          6,387,964    21,108,526
    
    
    7.22 Taxes and dues payable
    
    Unit: Yuan
    
                    Item                        Endingbalance            Beginningbalance
    Valueaddedtax                                         28,114,274                36,442,868
    Consumption tax                                         9,089,447                28,636,646
    Corporate incometax                                      59,137,357                40,869,507
    Individual incometax                                       276,031                5,669,099
    Urban maintenanceandconstructiontax                          2,407,009                4,337,712
    Property tax                                             5,406,700                5,165,128
    Urban landusetax                                        2,255,344                2,476,527
    Other                                                 2,314,640                5,315,303
    Total                                                109,000,802               128,912,790
    
    
    7.23 Other payables
    
    Unit: Yuan
    
                Item                     Endingbalance                Beginningbalance
    Interest payable                                      2,669,667                      712,826
    Dividends payable                                  412,646,375
    Other payables                                     562,350,965                   607,767,064
    Total                                           977,667,007                   608,479,890
    
    
    pRaeymabarlkesa:ndOtdhievridpenaydasbplaeysabinle.the above list refer to the payables after deducting interest
    
    7.23.1 Interest payable
    
    Unit: Yuan
    
                    Item                       Endingbalance             Beginningbalance
    Interest oflong-termloanswithinterestpaidby
    installment andprincipalpaidonmaturity
    Interest ofcorporatebonds
    Interest payableofshort-termloans                             2,669,667                  712,826
    Interest ofpreferredshares\perpetualbonds
    divided intofinancialliabilities
                    Item                       Endingbalance             Beginningbalance
    Other
    Total                                                 2,669,667                  712,826
    
    
    7.23.2 Dividends payable
    
    Unit: Yuan
    
                    Item                        Endingbalance            Beginningbalance
    Ordinary stockdividends                                   411,278,400
    Preferred stockdividends/sustainabledebtdividends
    divided intoequityinstruments
    Other                                               1,367,975.00
    Total                                              412,646,375.00
    
    
    7.23.3 Other payables
    
    7.23.3.1 Other payables listed by nature
    
    Unit: Yuan
    
                   Item                      Endingbalance              Beginningbalance
    Dealer’s depositpayable                                  166,741,693                159,191,138
    Equipment purchaseandconstructioncosts                      93,902,789                152,825,734
    payable
    Transportation chargespayable                              15,579,562                 38,867,725
    Trademark usefeespayableforChangyuGroup                                           78,414,978
    Company
    Advertisement marketingexpensespayable                     209,606,196                 96,429,861
    Employee cashdeposit                                      869,282                  2,806,766
    Supplier’s depositpayable                                 18,732,029                 15,901,210
    Contracting feespayable                                  19,130,850                 27,070,584
    Other                                               37,788,564                 36,259,068
    Total                                               562,350,965                607,767,064
    
    
    7.23.3.2 Other significant accounts payable aged more than one year
    
    Unit: Yuan
    
                   Item                     Endingbalance         Causeofunpaymentorcarry-over
    Beijing QinglangEcologicalAgriculture                     3,513,506 Thecontractingfeeshaven’tbeensettled
    Technology DevelopmentCo.,Ltd.(“Beijing
    Qinglang”)
    VASFCompany                                     4,878,866 Thecontractingfeeshaven’tbeensettled
    Total                                             8,392,372             --
    
    
    7.24 Non-current liabilities due within one year
    
    Unit: Yuan
    
                Item                    Ending balance               Beginning balance
    Long-term loansdue withinone                      146,362,314                   118,940,788
    year
    Bonds payable duewithin oneyear
    Long-term accounts payable due                      34,000,000                    34,000,000
    within oneyear
    Lease liabilities duewithin one
    year
    Total                                           180,362,314                   152,940,788
    
    
    7.25 Other current liabilities
    
    Unit: Yuan
    
                  Item                      Endingbalance               Beginningbalance
    Short-term bondspayable
    Refunds payable
    Deferred income                                     14,545,254                   15,860,254
    Total                                             14,545,254                   15,860,254
    
    
    7.26 Long-term loans
    
    7.26.1 Classification of long-term loans
    
    Unit: Yuan
    
                  Item                      Endingbalance               Beginningbalance
    Pledge loan
    Mortgage loan                                        3,529,655                    3,924,916
    Guaranteed loan                                      98,156,000                  110,750,000
    Fiduciary loan                                       64,263,595                   41,805,746
    Total                                            165,949,250                  156,480,662
    
    
    Description of the classification of long-term loans:
    
    Unit: Yuan
    
             Item              Endingbalance     Long-termloanduewithinone Long-termloandueoverone
                                                      year                  year
    Pledge loan
    Mortgage loan                        6,616,377             3,086,722             3,529,655
    Guaranteed loan                     116,906,000            18,750,000            98,156,000
    Fiduciary loan                      188,789,187            124,525,592            64,263,595
    Total                             312,311,564            146,362,314            165,949,250
    
    
    AYusaant Jbuonrero3w0e,d20b1y9,tthhee CguoamrapnatneyedfoloranthreefRer&reDd tCootmhepalonnyg-bteyrmmeloaanns ooffRcMreBdit68g,u7a5r0a,n0t0e0e
    
    B(Daenckeimngbebry3t1h,e2C0o1m8:p8a1n,y25fo0r,0K00iliYkaunaono),nwEhsitcahtew, AasusbtorarrloiawoefdAfrUomD 1A0u,s0t0ra0l,i0a0&0 (NeqeuwivZaeleanlatntdo
    
    RtoMthBe4l8o,a1n56o,f00E0UYRu6an7)8,(8D6e8ce(meqbueirva3l1e,n2t 0to18R: M48B,2550,3,00060,7Y10uaYn)u.aTnh)ebmororortwgaegdeflrooamn rPeofeprurleadr
    
    REsMpaB?o2l2b,6y7M6,a5r3q1ueYsudaenl)A(tDrieocbeymmbeorrt3g1a,gi2n0g1i8ts: fRixMedBas6s,7et4s9o,9f4E4UYRu2a,n9)0.0K,9i2li5ka(enqouoinvaElesntattteo,
    
    pAluedstgrainliga itbsofrirxoewdeadssaetslooafnAoUfDA5U0D3,126731(,9e6q3uiv(aelqeunitvtaoleRntMtBo 2R,4M2B3,013,230Y9u,6a6n7) frYoumanN) AbBy
    
    bank (December 31, 2018: RMB 48,250,000 Yuan).
    
    7.27 Long-term accounts payable
    
    7.27.1 Long-term accounts payable listed by nature
    
    Unit: Yuan
    
    Item                                                Endingbalance    Beginningbalance
    China AgriculturalDevelopmentKeyConstructionFund                  201,000,000        225,000,000
    Total                                                    201,000,000        225,000,000
    
    
    IDnev2e0l1o6p,mAegnrtic&ultuMraalnDufeavcetulorpemCeonmt Fpuanndy, inavcecsotuendtiRngMBfor30357,0.90%0,0o0f0 tYhueanreginistthereedRecsaeparitcahl,.
    
    tAakcceobrdacinkgthtoe tihneveinstvmesetnmt efnutndagirneetemneynet,airtsiasnadgroebetdaitnhafitxAedgriinccuoltmurealacDceovredlionpgmtoenyteFaru,nwdhwicilhl
    
    Dise1v.e2lo%pmoefnttheFurenmdaisnhinalgl pnrointciepnajlo. yExoctehpetr foprrotfhiets aboofvethfeixeRdesienacrocmh,e,DtheeveAlogprmiceunlttur&al
    
    MCoamnupfaancytu. reAcCcoomrdpinangyly,orthbeeairnvthesetmloesnstesofof ththee ARgersiecaurlctuhr,alDeDveevloeplompemnetn&t FMunadnufianctuthree
    
    dReebsteainrcvhe,stDmeevnetlo(fpimnaenncte&disMcoaunnutfaicnttuerreesCt loomanp)aniny diseeedq.uTithyeinGvreosutpmeinnctlundoemdinthalelyi,nvwehstimchenist
    
    ocofstth.eFArogmricJualtnuuraarlyDteoveJluonpem2e0n1t9F,utnhde inGrloounpg-tgearvme abcaccokuntthsepparyianbcliepaml eoafsuRreMdBby24am,00o0rt,i0z0e0d
    
    Yuan. Refer to Note 7.51 for details of mortgaged and pledged assets.
    
    Unit: Yuan
    
       Balanceoflong-term accounts   Long-term accounts payable Long-term accounts payable dueinone
               payable               duewithinone year                yearlater
                       235,000,000              34,000,000                       201,000,000
    
    
    7.28 Deferred income
    
    Unit: Yuan
    
         Item       Beginningbalance   Increaseinthis    Decreaseinthis   Endingbalance    Formingreason
                                    period          period
    Governmental           86,227,293       4,465,398      12,096,542      78,596,149
    subsidy
    Minus: Those
    included incurrent       15,860,254                     1,315,000      14,545,254
    liabilities
    Non-current            70,367,039       4,465,398      10,781,542      64,050,895       --
    liabilities
    
    
    Projects related to governmental subsidy
    
    Unit: Yuan
    
                             Amount
                               of     Amount   Amount  Amount
                     Beginning subsidy  includedin includedin  offset   Other   Ending     Relatedto
      Item ofliabilities    balance   newly  non-operating   other   thecost changes  balance   assets/income
                             increased  revenuein  incomein expenses
                              inthis   thisperiod  thisperiod
                              period
    Grape bulkwine      3,304,500                   717,450               2,587,050 Relatedtoassets
    brewing project
    Reward forinvestment
    in fixedassetsof      6,996,600                  1,140,000               5,856,600 Relatedtoassets
    Chateau Shihezi
    project
    Industrial
    revitalization and
    technical           15,642,000                   711,000              14,931,000 Relatedtoassets
    transformation project
    in Xinjiang
    Special subsidyfor     4,240,000                   530,000               3,710,000 Relatedtoassets
                             Amount
                               of     Amount   Amount  Amount
                     Beginning subsidy  includedin includedin  offset   Other   Ending     Relatedto
      Item ofliabilities    balance   newly  non-operating   other   thecost changes  balance   assets/income
                             increased  revenuein  incomein expenses
                              inthis   thisperiod  thisperiod
                              period
    supporting
    infrastructure
    Tourism development    500,000                                         500,000 Related      to
    fund subsidyproject                                                         income
    Construction projectof
    grape brewing        3,200,000                   200,000               3,000,000 Relatedtoassets
    production capacity
    (Huanren)
    Electronic traceability   2,525,257                   333,527               2,191,730 Relatedtoassets
    system projectofwine
    Wine industry         558,000                    93,000                465,000 Relatedtoassets
    development project
    Peninsula blue
    economic zone       6,000,000                  1,000,000               5,000,000 Relatedtoassets
    construction project
    Technical
    transformation project
    of information-based   2,900,000                   290,000               2,610,000 Relatedtoassets
    system construction
    engineering
    Cross-border          880,256                    67,114                813,142 Relatedto
    e-commerce project                                                         income
    Fund forwater                                                             Relatedto
    pollution treatment      206,530                    56,801                149,729 income
    project
    Infrastructure         1,718,750                    62,500               1,656,250 Relatedtoassets
    construction project
    Supporting fundfor   32,800,000                  2,050,000              30,750,000 Relatedtoassets
    industrial development
    Subsidy foreconomic
    and energy-saving     1,026,400                    64,150                962,250 Relatedtoassets
    technical
    transformation project
    Special fundfor       1,639,000                    81,000               1,558,000 Relatedtoassets
                             Amount
                               of     Amount   Amount  Amount
                     Beginning subsidy  includedin includedin  offset   Other   Ending     Relatedto
      Item ofliabilities    balance   newly  non-operating   other   thecost changes  balance   assets/income
                             increased  revenuein  incomein expenses
                              inthis   thisperiod  thisperiod
                              period
    efficient water-saving
    irrigation project
    Guiding fundforthe                                                         Relatedto
    development ofservice  2,000,000 4,200,000           4,700,000               1,500,000 income
    industry
    Subsidy forboiler                                                          Relatedto
    renovation and          90,000                                         90,000 income
    demolition
    Subsidy for
    mechanical                  265,398                                  265,398 Relatedtoassets
    development
    Total             86,227,293 4,465,398          12,096,542              78,596,149
    Minus: Thoseincluded 15,860,254                  1,315,000              14,545,254
    in currentliabilities
    Non-current liabilities  70,367,039 4,465,398          10,781,542              64,050,895
    
    
    7.29 Other non-current liabilities
    
    Unit: Yuan
    
                   Item                     Endingbalance              Beginningbalance
    Employee remunerationspayable                           7,159,222                    7,234,853
    Total                                              7,159,222                    7,234,853
    
    
    dAesdautctJeudnefr3o0m, 20th1e9,ytehaer-eemndplobyoeneursemofuntehreatieomnsplpoayyeaebslehrigefheerrretdhaton thsaelejosbmseacnuargiteyr doefpothsiet
    
    Company in proportion, which will be paid from 2020 to 2022 as predicted.
    
    7.30 Share capital
    
    Unit: Yuan
    
                                      Increaseordecrease(+,-)inthisperiod
                Beginning                          Share                           Ending
                 balance   NewshlyariesssuedAsllhoacraetsedtranfrsofemrred  Other      Subtotal     balance
                                              accumulation
                                                 fund
    Total shares   685,464,000                                                    685,464,000
    
    
    7.31 Capital reserves
    
    Unit: Yuan
    
             Item           Beginningbalance   Increaseinthisperiod    Decreaseinthis    Endingbalance
                                                               period
    Capital premium(Share            560,038,853                                      560,038,853
    capital premium)
    Other capitalreserves               5,916,588                                       5,916,588
    Total                         565,955,441                                      565,955,441
    
    
    7.32 Other comprehensive income
    
    Unit: Yuan
    
                                               Amount incurredinthisperiod
                                             Minus:amount
                                     Amount    includedin
              Item           Beginning   incurred     other     Minus: Attributable Attributable  Ending
                             balance  incboemfoeretaxcinocmopmreehbeenfsoivreeinctaoxmectoompapraennytsthoamreihnoolrdietyrsbalance
                                      inthis   andtransferred expenses  aftertax   aftertax
                                      period   toprofitorloss
                                             in thisperiod
    1. Othercomprehensiveincome
    not tobereclassifiedintoprofit
    and losslater
    Including: changeinnetliabilities
    and netassetsfromrecalculated
    defined benefitplan
        Share enjoyedinother
    comprehensive incomenottobe
    reclassified intoprofitandlossin
    invested unitunderequitylaw
    2. Othercomprehensiveincometo
    be reclassifiedintoprofitandloss  2,965,377  -4,657,291                  -3,060,721  -1,596,570   -95,344
    later
    Including: shareenjoyedinother
    comprehensive incometobe
    reclassified intoprofitandlossin
                                               Amount incurredinthisperiod
                                             Minus:amount
                                     Amount    includedin
              Item           Beginning   incurred     other     Minus: Attributable Attributable  Ending
                             balance  incboemfoeretaxcinocmopmreehbeenfsoivreeinctaoxmectoompapraennytsthoamreihnoolrdietyrsbalance
                                      inthis   andtransferred expenses  aftertax   aftertax
                                      period   toprofitorloss
                                             in thisperiod
    invested unitunderequitylaw
         Profit andlossfrom
    changes infairvalueoffinancial
    assets forsale
         Profit andlossfrom
    reclassification of
    held-to-maturity investmentinto
    fair valueoffinancialassetsfor
    sale
         Effective partofprofitand
    loss ofcash-flowhedge
         Difference intranslationof
    Foreign CurrencyFinancial       2,965,377  -4,657,291                  -3,060,721  -1,596,570   -95,344
    Statement
    Total othercomprehensiveincome  2,965,377  -4,657,291                  -3,060,721  -1,596,570   -95,344
    
    
    7.33 Surplus reserves
    
    Unit: Yuan
    
             Item           Beginningbalance   Increaseinthisperiod    Decreaseinthis    Endingbalance
                                                               period
    Legal surplusreserves             342,732,000                                      342,732,000
    Free surplusreserves
    Reserve fund
    Enterprise expansionfund
    Other
    Total                         342,732,000                                      342,732,000
    
    
    7.34 Undistributed profit
    
    Unit: Yuan
    
                              Item                           Endingbalance   Beginningbalance
    Undistributed profitattheendofpriorperiodbeforeadjustment               8,008,982,547       7,309,081,618
    Total Undistributedprofitatthebeginningoftheperiodbeforeadjustment          -3,278,942
    (increase listedwith+,anddecreaselistedwith-)
    Undistributed profitatthebeginningoftheperiodafteradjustment             8,005,703,605       7,309,081,618
    Plus: Netprofitforowneroftheparentcompany                          603,403,789       1,042,632,929
    Minus: Drawnlegalsurplus
    Drawn freesurplus
    Drawn commonriskprovision
    Common dividendpayable                                        411,278,400        342,732,000
    Common dividendtransferredtosharecapital
    Undistributed profitattheendofperiod                               8,197,828,994       8,008,982,547
    
    
    7.35 Operating income and operating cost
    
    Unit: Yuan
    
                 Item                Amountincurredinthisperiod      Amountincurredinpriorperiod
                                     Income         Cost          Income          Cost
    Main business                       2,541,459,605     927,958,197    2,818,814,912      969,407,949
    Other business                        16,815,180       8,294,028       9,415,152       5,149,343
    Total                             2,558,274,785     936,252,225    2,828,230,064      974,557,292
    
    
    7.36 Taxes and surcharges
    
    Unit: Yuan
    
                    Item                  Amountincurredinthisperiod   Amountincurredinpriorperiod
    Consumption tax                                         68,699,658                97,343,463
    Urban maintenanceandconstructiontax                         18,763,626                23,778,056
    Education surcharges                                      13,670,717                17,417,976
    Building tax                                            14,184,915                16,878,556
    Land usetax                                            5,478,045                6,013,248
    Stamp duty                                             1,504,356                2,247,814
    Other                                                 1,249,531                1,597,138
    Total                                                123,550,848               165,276,251
    
    
    7.37 Selling expenses
    
    Unit: Yuan
    
                Item                Amountincurredinthisperiod       Amountincurredinpriorperiod
    Marketing expenses                                 268,185,487                   326,942,076
    Employee remunerations                              130,725,779                   139,247,494
    Transportation expenses                               53,735,626                    67,177,736
    Trademark usefees                                                              43,363,867
    Storage andleaseexpenses                             24,274,917                    19,857,616
    Depreciation expenses                                20,476,637                    21,735,895
    Advertisement expenses                               26,920,257                    23,574,432
    Conference expenses                                  8,945,999                     9,319,883
    Design &productionexpenses                            2,365,761                     2,457,300
    Service charges                                     11,484,614                    12,459,237
    Travel expenses                                     11,822,548                    10,886,711
    Water,electricityandgascharges                          7,697,325                     7,166,936
    Office &postagecosts                                 2,801,706                     2,349,806
    Packing expenses                                    3,971,486                     3,873,287
    Public   security  &  clean-keeping                     2,214,479                     2,336,546
    expenses
    Business entertainmentexpenses                          1,763,307                     1,995,516
    Other                                            14,584,873                    15,914,695
    Total                                           591,970,801                   710,659,033
    
    
    7.38 Management expenses
    
    Unit: Yuan
    
                Item                Amountincurredinthisperiod       Amountincurredinpriorperiod
    Employee remunerations                               62,572,295                    60,660,238
    Depreciation expenses                                31,887,697                    35,410,914
    Contracting expenses                                  7,178,106                     7,178,106
    Repair expenses                                     8,253,897                     7,076,148
    Office expenses                                     10,177,651                    10,977,189
    Amortization expenses                                 7,677,849                     9,520,182
    Afforestation fees                                    7,682,946                     6,493,556
    Safe productioncosts                                  2,357,016                     2,422,526
    Rental expenses                                     4,766,202                     5,061,778
    Business entertainmentexpenses                          2,631,383                     2,815,060
    Public   security  &  clean-keeping                     3,356,435                     3,953,646
    expenses
    Travel expenses                                     2,971,468                     2,139,939
    Other                                             4,039,367                     4,255,600
    Total                                           155,552,312                   157,964,882
    
    
    7.39 R&D expenses
    
    Unit: Yuan
    
                Item                Amountincurredinthisperiod       Amountincurredinpriorperiod
    R&D expenses                                      2,706,811                     2,127,006
    Total                                             2,706,811                     2,127,006
    
    
    7.40 Financial expenses
    
    Unit: Yuan
    
                Item                Amountincurredinthisperiod       Amountincurredinpriorperiod
    Interest expenditure                                   9,812,560                    18,739,528
    Minus: Interestincome                                 4,606,417                     7,245,870
    Plus: Commissioncharges                               1,271,831                     3,005,483
    Exchange gainorloss                                  2,311,609                    -1,413,199
    Total                                             8,789,583                    13,085,942
    
    
    7.41 Other income
    
    Unit: Yuan
    
                Sourceofotherincome             Amountincurredinthisperiod   Amountincurredinprior
                                                                          period
    Supporting fundforindustrialdevelopment                           2,050,000              2,050,000
    Industrial revitalizationandtechnicaltransformation                                         1,086,000
    project inNingxia
    Reward forinvestmentinfixedassets                               1,140,000              1,140,000
    Special fundforconstructionofpeninsulablueeconomic                  1,000,000              1,000,000
    zone
    Other                                                    3,082,627              4,012,100
    Special fundforsupportingcorporatedevelopment                     51,633,350             15,011,673
    Other                                                    5,305,915             13,683,105
                Sourceofotherincome             Amountincurredinthisperiod   Amountincurredinprior
                                                                          period
    Total                                                   64,211,892             37,982,878
    
    
    7.42 Loss on impairment of credit
    
    Unit: Yuan
    
                Item                Amountincurredinthisperiod       Amountincurredinpriorperiod
    Lossonbaddebtsofaccountsreceivable                      -765,935
    Total                                             -765,935
    
    
    7.43 Loss on impairment of assets
    
    Unit: Yuan
    
                   Item                  Amountincurredinthisperiod    Amountincurredinpriorperiod
    1. Lossonbaddebts
    2. Inventoryfallingpriceloss                                6,148,729                  4,730,948
    3. Lossonimpairmentofavailable-for-sale
    financial assets
    4. Lossonimpairmentofheld-tomaturity
    investment
    5. Lossonimpairmentoflong-termequity
    investment
    6. Lossonimpairmentofinvestmentrealestate
    7. Lossonimpairmentoffixedassets
    8. Lossonimpairmentofengineeringmaterials
    9. Lossonimpairmentofconstructioninprogress
    10. Lossonimpairmentofproductivebiological
    assets
    11. Lossonimpairmentofoilandgasassets
    12. Lossonimpairmentofintangibleassets
    13. Lossonimpairmentofgoodwill
    14. Other
    Total                                                6,148,729                  4,730,948
    
    
    7.44 Income from asset disposal
    
    Unit: Yuan
    
    Sourceofincomefromassetdisposal        Amountincurredinthisperiod      Amountincurredinpriorperiod
    Income fromdisposaloffixedassets                             1,138                     93,958
    Total                                                  1,138                     93,958
    
    
    7.45 Non-operating income
    
    Unit: Yuan
    
                Item             Amountincurredin Amountincurredin    Amountincludedinthecurrent
                                   this period       priorperiod       non-recurringprofits/losses
    Gains ondebtrecombination
    Gains onexchangeofnon-monetary
    assets
    Grains ondonations
    Governmental subsidy
    Other                               3,575,914        2,006,392                    3,575,914
    Total                                3,575,914        2,006,392                    3,575,914
    
    
    7.46 Non-operating expenses
    
    Unit: Yuan
    
              Item          Amotuhnistpinecruiordredin  Amopurinotripnecruirordedin      Amnoonu-nretcinucrrliundgedprionfitthse/locussreresnt
    Loss ondebtrecombination
    Loss onexchangeof
    non-monetary assets
    Donation
    Fine, penaltyandoverduefine
    paid duetoviolationoflawsand           10,811         1,187,713                         10,811
    aOdtmheirnistrativeregulations               153,239          204,649                         153,239
    Total                            164,050         1,392,362                         164,050
    
    
    7.47 Income tax expenses
    
    7.47.1 List of income tax expenses
    
    Unit: Yuan
    
                       Item                   Amountincurredinthisperiod   Amountincurredinprior
    Current incometaxexpenses                                  161,779,976            178,993,081
    Deferred incometaxexpenses                                  48,501,602             32,986,654
    Total                                                  210,281,578             211,979,735
    
    
    7.47.2 Adjustment process of accounting profit and income tax expenses
    
    Unit: Yuan
    
                                 Item                                Amountincurredinthis
    Total profit                                                                  812,459,893
    Income taxexpensescalculatedaccordingtothelegal/applicabletaxrate                         203,114,973
    Influence ofdifferenttaxratesapplicabletosubsidiary                                         -66,516
    Influence ofincometaxinthetermbeforeadjustment                                        3,082,397
    Influence ofnontaxableincome
    Influence ofnon-deductiblecosts,expensesandlosses                                       2,219,026
    Influence ofdeductiblelossfromuseofunconfirmeddeferredincometaxassetsinprior
    period
    Influence ofdeductibletemporarydifferenceordeductiblelossofunconfirmeddeferred                 1,931,698
    income taxassetsinthisperiod
    Income taxexpense                                                            210,281,578
    
    
    7.48 Other comprehensive income
    
    Refer to Note 7.32 for details.
    
    7.49 Items of cash flow statement
    
    7.49.1 Other cash received related to operating activities
    
    Unit: Yuan
    
                    Item                 Amountincurredinthisperiod    Amountincurredinpriorperiod
    Governmental subsidyincome                              62,580,748                 33,687,978
    Interest income                                         2,835,438                  3,302,294
    Net amercementincome                                   1,225,511                  1,609,829
    Other                                                1,143,923                  3,742,920
    Total                                               67,785,620                 42,343,021
    
    
    7.49.2 Other cash paid related to operating activities
    
    Unit: Yuan
    
                    Item                 Amountincurredinthisperiod    Amountincurredinpriorperiod
    Selling expenses                                       348,849,996                387,846,396
    Administrative expenses                                  41,017,612                 45,235,101
    Other                                                2,912,859                  3,895,589
    Total                                              392,780,467                436,977,086
    
    
    7.49.3 Other cash received related to financial activities
    
    Unit: Yuan
    
                Item                Amountincurredinthisperiod       Amountincurredinpriorperiod
    Government subsidies received related                                                3,150,000
    to assets
    Interest income from pledge of fixed                                                  371,431
    deposits bytheR&DCompany
    Long-term loans from pledge of fixed                                                20,000,000
    deposits byR&DCompany
    Total                                                                       23,521,431
    
    
    7.49.4 Other cash paid related to financial activities
    
    Unit: Yuan
    
                    Item                 Amountincurredinthisperiod    Amountincurredinpriorperiod
    R&D Company’long-termloanspledgedby                                              20,000,000
    fixed-term deposits
    Total                                                                       20,000,000
    
    
    7.50 Supplementary information to cash flow statement
    
    7.50.1 Supplementary information to cash flow statement
    
    Unit: Yuan
    
               Supplementarymaterials            Amountincurredinthisperiod  Amountincurredinpriorperiod
    1. Cashflowsfromoperatingactivitiescalculatedby             --                     --
    adjusting thenetprofit:
    Net profit                                             602,178,315               636,001,737
    Plus: Provisionforimpairmentofassets                          -5,382,794                -4,730,948
    Depreciation offixedassets,oil-and-gasassetsand                  155,147,729               148,983,240
    productive biologicalassets
    Depreciation ofright-of-useassets
    Amortization ofintangibleassets                               8,438,742                11,567,301
    Amortization oflong-termdeferredexpenses                       6,662,662                8,117,444
    Losses ondisposaloffixedassets,intangibleassetsand                   -1,138                  -93,958
    other long-termassets(profitlistedwith“-”)
               Supplementarymaterials            Amountincurredinthisperiod  Amountincurredinpriorperiod
    Losses onretirementoffixedassets(profitlistedwith
    “-”)
    Losses onfairvaluechange(profitlistedwith“-”)
    Financial costs(profitlistedwith“-”)                          13,987,879                15,048,678
    Investment losses(profitlistedwith“-”)
    Decrease indeferredincometaxassets(increaselisted                50,789,656                37,133,223
    with “-”)
    Increase ofdeferredincometaxliabilities(decrease                  -3,381,035                -4,146,569
    listed with“-”)
    Decrease ininventories(increaselistedwith“-”)                   123,958,750               216,486,236
    Decrease inoperatingreceivables(increaselistedwith                                      -305,623,146
    “-”)                                                -172,662,167
    Increase inoperatingpayable(decreaselistedwith“-”)              -280,260,593              -205,989,766
    Other
    Net cashflowsfromoperatingactivities                         499,476,006               552,753,472
    2. Significantinvestmentandfinancingactivitiesnot             --                     --
    involving cashdepositandwithdrawal:
    Debt transferredintoassets
    Convertible corporatebondduewithin1year
    Fixed assetsunderfinancinglease
    3. Netchangesofcashandcashequivalent:                   --                     --
    Ending balanceofcash                                   1,573,727,077              1,428,670,462
    Minus: Beginningbalanceofcash                           1,206,860,334              1,180,889,274
    Plus: Endingbalanceofcashequivalent
    Minus: Beginningbalanceofcashequivalent
    Net increaseamountofcashandcashequivalent                   366,866,743               247,781,188
    
    
    7.50.2 Composition of cash and cash equivalents
    
    Unit: Yuan
    
                     Item                        Endingbalance           Beginningbalance
    1. Cash                                             1,573,727,077              1,428,670,462
    Including: Cashonhand                                       70,198                  151,228
        Bankdepositsondemand                              1,573,656,879              1,428,519,234
        Othermonetarycapitalondemand
        Duefromcentralbankavailableforpayment
        Duefromtheindustry
        Inter-banklending
    2. Cashequivalents
    Including: Bondinvestmentduewithinthreemonths
    p3.erBioadlanceof cash and cash equivalents at the end of            1,573,727,077              1,428,670,462
    sInucblsuiddiinargi:esiRnetshtericgtreodupuse  of  parent  company  or
    
    
    7.51 Assets with ownership or use right restrictions
    
    Unit: Yuan
    
                 Item               Endingbookvalue              Reasonforrestriction
                                                   Loandeposit,L/Cdeposit,frozenbalanceofAlipay,
    Monetary capital                            94,466,626 housingfundandguarantymoneyfordepositinunit
                                                   card
    Accounts receivable                         31,134,017 Pledgeofshort-termloans
    Fixed assets                              353,013,613 Pledgeofshort-termloans,long-termloansand
                                                   long-termaccountspayable
    Intangible assets                           215,282,924 Pledgeoflong-termaccountspayable
    Total                                   693,897,180                  --
    
    
    7.52 Foreign currency monetary items
    
    7.52.1 Foreign currency monetary items
    
    fTohlleofwosr:eign currency monetary items of the Group in domestic entities of China are listed as
    
    Unit: Yuan
    
          Item        Endingforeigncurrencybalance   Translationexchangerate   EndingconvertedRMBbalance
    Monetary capital                --                     --                         46,815,034
    Including: USD                     6,805,498                6.8747                46,785,757
            EUR                        2,901                 7.817                   22,677
            HKD                       7,503                0.8797                   6,600
    
    
    7.52.2 Overseas operational entities
    
    TechoenocmurircenecnyviardoonpmteedntbywhtheereovtheerseoapsersautbiosnidiiasrieloscaotfedtheshCalolmbpeancyhoascecnordaisngthteo rtehceormdianign
    
    ucuserreeunrcoy.aMs tahrequreecsodrdelinAgtrciuorraenndcyF,rIanndcosmCihtaamWpisnePaCrotimcippaantiyonCshSilAe,SS(p“AFruasnecssCChhialemapnsp”e)sbooaths
    
    the recording currency, and Kilikanoon Estate, Australia uses Australian dollar as the
    
    rliesctoedrdainsgfoclluorwresn:cy. The foreign currency assets or liabilities of overseas subsidiaries are
    
    Unit: Yuan
    
          Item        Endingforeigncurrencybalance   Translationexchangerate   EndingconvertedRMBbalance
    Monetary capital                --                     --                          3,553,711
    Including: USD                       516,926                6.8747                 3,553,711
            EUR
            HKD
    Short-term loans                --                     --                         75,621,700
    Including: USD                     11,000,000                6.8747                75,621,700
            EUR
            HKD
    
    
    8. Changes in scope of consolidation
    
    Nil9. Equity in other entities9.1 Equity in the subsidiaries9.1.1 Constitution of enterprise group
    
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
                    ShiheziCity,Xinjiang                                        Acquiredfroma
    Xinjiang Tianzhu(a)     UygurAutonomousRegion, ShiheziCity,XinjiangUygur  Manufacturing  60%     businesscombination
                    China             AutonomousRegion,China   industry              undernon-common
                                                                        control
                                                                        Acquired froma
    Roullet Fransac       Cognac,France        Cognac,France         Trading          100% businesscombination
                                                                        under non-common
                                                                        control
                                                                        Acquired froma
    Mirefleurs          Bordeaux,France       Bordeaux,France        Trading          100% businesscombination
                                                                        under non-common
                                                                        control
    Marques delAtrio      Navarra,Spain        Navarra,Spain          Sales        75%     Acquiredfroma
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
                                                                        business combination
                                                                        under non-common
                                                                        control
                                                                        Acquired by
    Indomita Wine        Santiago,Chile        Santiago,Chile         Sales        85%     establishmentor
                                                                        investment
                                                                        Acquired froma
    Kilikanoon Estate,      Adelaide,Australia      Adelaide,Australia       Sales        80%     businesscombination
    Australia                                                               undernon-common
                                                                        control
    Beijing ChangyuWine                                                        Acquiredby
    Marketing Co.,Ltd.     BeijingCity,China      BeijingCity,China       Sales        50%  50% establishmentor
    (“Beijing Marketing”)                                                        investment
    YantaiKylinPackaging   YantaiCity,Shandong    YantaiCity,Shandong      Manufacturing          Acquiredby
    Co., Ltd.(“Kylin       Province,China        Province,China         industry     100%     establishmentor
    Packaging”)                                                              investment
    YantaiChateau        YantaiCity,Shandong    YantaiCity,Shandong      Manufacturing          Acquiredby
    Changyu-Castel Co.,Ltd.  Province,China        Province,China         industry      70%     establishmentor
    (“Chateau Changyu”)(b)                                                      investment
    Changyu (Jingyang)     XianyangCity,Shaanxi   XianyangCity,Shaanxi     Manufacturing          Acquiredby
    Pioneer WineCo.,Ltd.   Province,China        Province,China         industry     100%     establishmentor
    (“Jingyang Wine”)                                                          investment
    YantaiChangyuPioneer   YantaiCity,Shandong    YantaiCity,Shandong                        Acquiredby
    Wine SalesCo.,Ltd.     Province,China        Province,China         Sales       100%     establishmentor
    (“Sales Company”)                                                          investment
    Langfang Development                                                       Acquiredby
    Zone Castel-ChangyuWine LangfangCity,Hebei     LangfangCity,Hebei      Manufacturing  39%  10% establishmentor
    Co., Ltd.(“Langfang    Province,China        Province,China         industry              investment
    Castel”) (c)
    Changyu (Jingyang)     XianyangCity,Shaanxi   XianyangCity,Shaanxi                       Acquiredby
    Pioneer WineSalesCo.,   Province,China        Province,China         Sales       100%     establishmentor
    Ltd. (“JingyangSales”)                                                       investment
    Langfang ChangyuPioneer LangfangCity,Hebei     LangfangCity,Hebei                        Acquiredby
    Wine SalesCo.,Ltd.     Province,China        Province,China         Sales       100%     establishmentor
    (“Langfang Sales”)                                                          investment
    Shanghai ChangyuWine                                                       Acquiredby
    Marketing Co.,Ltd.     ShanghaiCity,China     ShanghaiCity,China      Sales        30%  70% establishmentor
    (“Shanghai Marketing”)                                                       investment
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
    Beijing ChangyuAFIP
    Eco-agriculture        MiyunCounty,BeijingCity, MiyunCounty,BeijingCity,                    Acquiredby
    Development Co.,Ltd.   China             China               Sales            100% establishmentor
    (“Eco-agriculture                                                           investment
    Development”)
    Beijing ChangyuAFIP                                     Manufacturing          Acquiredby
    Wine ChateauCo.,Ltd.   BeijingCity,China      BeijingCity,China       industry      90%     establishmentor
    (“Beijing Chateau”)(d)                                                       investment
    YantaiChangyuWineSales YantaiCity,Shandong    YantaiCity,Shandong                        Acquiredby
    Co., Ltd.(“WineSales”)  Province,China        Province,China         Sales        90%  10% establishmentor
                                                                        investment
    YantaiChangyuPioneer                                                       Acquiredby
    International WineCo.,   YantaiCity,Shandong    YantaiCity,Shandong      Sales        70%  30% establishmentor
    Ltd. (“Pioneer        Province,China        Province,China                           investment
    International”)
    Hangzhou ChangyuWine  HangzhouCity,Zhejiang   HangzhouCity,Zhejiang                      Acquiredby
    Sales Co.,Ltd.(“Hangzhou Province,China        Province,China         Sales            100% establishmentor
    Changyu”)                                                              investment
                    YinchuanCity,NingxiaHui YinchuanCity,NingxiaHui  Planting              Acquiredby
    Ningxia Growing      AutonomousRegion,China AutonomousRegion,China   industry     100%     establishmentor
                                                                        investment
    Huanren ChangyuNational BenxiCity,Liaoning     BenxiCity,LiaoningProvince,                   Acquiredby
    Wine SalesCo.,Ltd.     Province,China        China               Sales       100%     establishmentor
    (“National Wine”)                                                          investment
    Liaoning ChangyuIcewine BenxiCity,Liaoning     BenxiCity,LiaoningProvince, Manufacturing          Acquiredby
    ValleyCo.,Ltd.(“Icewine  Province,China        China               industry      51%     establishmentor
    Valley”)(e)                                                              investment
    YantaiDevelopmentZone                                                      Acquiredby
    Changyu TradingCo.,Ltd. YantaiCity,Shandong    YantaiCity,Shandong      Sales            100% establishmentor
    (“Development Zone    Province,China        Province,China                           investment
    Trading”)
    Shenzhen ChangyuWine  ShenzhenCity,Guangdong ShenzhenCity,Guangdong                     Acquiredby
    Marketing Co.,Ltd.     Province,China        Province,China         Sales            100% establishmentor
    (“Shenzhen Marketing”)                                                       investment
    YantaiFushanDistrict    YantaiCity,Shandong    YantaiCity,Shandong                        Acquiredby
    Changyu TradingCo.,Ltd. Province,China        Province,China         Sales            100% establishmentor
    (“Fushan Trading”)                                                         investment
    Beijing ChangyuAFIP   MiyunCounty,BeijingCity, MiyunCounty,BeijingCity,  Service          100% Acquiredby
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
    International Conference  China             China               industry              establishmentor
    Center Co.,Ltd.                                                           investment
    (“Conference Center”)
    Beijing ChangyuAFIP   MiyunCounty,BeijingCity, MiyunCounty,BeijingCity,  Tourist              Acquiredby
    Tourism andCultureCo.,  China             China               industry          100% establishmentor
    Ltd. (“AFIPTourism”)                                                        investment
                    YinchuanCity,NingxiaHui YinchuanCity,NingxiaHui  Manufacturing          Acquiredby
    Ningxia Wine        AutonomousRegion,China AutonomousRegion,China   industry     100%     establishmentor
                                                                        investment
    YantaiChangyuChateau  YantaiCity,Shandong    YantaiCity,Shandong      Wholesaleand          Acquiredby
    Tinlot Co.,Ltd.(“Chateau  Province,China        Province,China         retail        65%  35% establishmentor
    Tinlot”)                                                                investment
    Changyu (Qingtongxia)   QingtongxiaCity,Ningxia  QingtongxiaCity,NingxiaHui                   Acquiredby
    Wine SalesCo.,Ltd.     HuiAutonomousRegion,  AutonomousRegion,China   Sales            100% establishmentor
    (“Qingtongxia Sales”)    China                                                 investment
                    ShiheziCity,Xinjiang    ShiheziCity,XinjiangUygur  Manufacturing          Acquiredby
    Shihezi Chateau       UygurAutonomousRegion, AutonomousRegion,China   industry     100%     establishmentor
                    China                                                 investment
                    YinchuanCity,NingxiaHui YinchuanCity,NingxiaHui  Manufacturing          Acquiredby
    Ningxia Chateau       AutonomousRegion,China AutonomousRegion,China   industry     100%     establishmentor
                                                                        investment
    Chateau ChangyuRena   XianyangCity,Shaanxi   XianyangCity,Shaanxi     Manufacturing          Acquiredby
    Shaanxi Co.,Ltd.      Province,China        Province,China         industry     100%     establishmentor
    (“Chang’an Chateau”)                                                        investment
    Research, Development& YantaiCity,Shandong    YantaiCity,Shandong      Manufacturing          Acquiredby
    Manufacture Company(f)  Province,China        Province,China         industry      68%     establishmentor
                                                                        investment
    Changyu (Huanren)     BenxiCity,Liaoning     BenxiCity,LiaoningProvince, Wine-making           Acquiredby
    Pioneer WineCo.,Ltd.   Province,China        China               project      100%     establishmentor
    (“Huanren Wine”)                                        preparation            investment
    Xinjiang ChangyuWine   XinjiangUygur        XinjiangUygurAutonomous                    Acquiredby
    Sales Co.,Ltd.(“Xinjiang  AutonomousRegion,China Region,China          Sales            100% establishmentor
    Sales”)                                                                investment
    Ningxia ChangyuTrading  YinchuanCity,NingxiaHui YinchuanCity,NingxiaHui                     Acquiredby
    Co., Ltd.(“Ningxia     AutonomousRegion,China AutonomousRegion,China   Sales            100% establishmentor
    Trading”)                                                               investment
    Shaanxi ChangyuRena   XianyangCity,Shaanxi   XianyangCity,Shaanxi     Sales            100% Acquiredby
    Wine SalesCo.,Ltd.     Province,China        Province,China                           establishmentor
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
    (“Shaanxi Sales”)                                                          investment
    Penglai ChangyuWine   PenglaiCity,Shandong    PenglaiCity,Shandong                       Acquiredby
    Sales Co.,Ltd.(“Penglai  Province,China        Province,China         Sales            100% establishmentor
    Wine”)                                                                investment
    Laizhou ChangyuWine   LaizhouCity,Shandong   LaizhouCity,Shandong                       Acquiredby
    Sales Co.,Ltd.(“Laizhou  Province,China        Province,China         Sales            100% establishmentor
    Sales”)                                                                investment
    Francs Champs                                          Investment            Acquiredby
    Participations SAS      Cognac,France        Cognac,France         trade       100%     establishmentor
                                                                        investment
    Lanzhou ChangyuWine   LanzhouCity,Gansu     LanzhouCity,GansuProvince,                   Acquiredby
    Marketing Co.,Ltd.     Province,China        China               Sales            100% establishmentor
    (“Lanzhou Marketing”)                                                       investment
    Beijing ChangyuTrading                                                      Acquiredby
    Co., Ltd.(“Beijing      BeijingCity,China      BeijingCity,China       Sales            100% establishmentor
    Trading”)                                                               investment
    Tianjin ChangyuPioneer                                                      Acquiredby
    Wine SalesCo.,Ltd.     TianjinCity,China      TianjinCity,China       Sales            100% establishmentor
    (“Tianjin Pioneer”)                                                          investment
    Fuzhou ChangyuPioneer  FuzhouCity,Fujian     FuzhouCity,FujianProvince,                    Acquiredby
    Wine Co.,Ltd.(“Fuzhou  Province,China        China               Sales            100% establishmentor
    Pioneer”)                                                               investment
    Nanjing ChangyuPioneer  NanjingCity,Jiangsu     NanjingCity,Jiangsu                        Acquiredby
    Wine Co.,Ltd.(“Nanjing  Province,China        Province,China         Sales            100% establishmentor
    Pioneer”)                                                               investment
    Xianyang ChangyuPioneer XianyangCity,Shaanxi   XianyangCity,Shaanxi                       Acquiredby
    Wine SalesCo.,Ltd.     Province,China        Province,China         Sales            100% establishmentor
    (“Xianyang Pioneer”)                                                        investment
    Shenyang ChangyuPioneer ShenyangCity,Liaoning   ShenyangCity,Liaoning                      Acquiredby
    Wine Co.,Ltd.(“Shenyang Province,China        Province,China         Sales            100% establishmentor
    Pioneer”)                                                               investment
    Jinan ChangyuPioneer   JinanCity,Shandong     JinanCity,ShandongProvince,                   Acquiredby
    Wine Co.,Ltd.(“Jinan    Province,China        China               Sales            100% establishmentor
    Pioneer”)                                                               investment
    Shanghai ChangyuPioneer                                                     Acquiredby
    Wine Co.,Ltd.(“Shanghai ShanghaiCity,China     ShanghaiCity,China      Sales            100% establishmentor
    Pioneer”)                                                               investment
    Fuzhou ChangyuPioneer  FuzhouCity,Jiangxi     FuzhouCity,JiangxiProvince, Sales            100% Acquiredby
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
    Wine Co.,Ltd.(“Fuzhou  Province,China        China                                 establishmentor
    Pioneer”)                                                               investment
    Shijiazhuang Changyu                                                        Acquiredby
    Pioneer WineSalesCo.,   ShijiazhuangCity,Hebei   ShijiazhuangCity,Hebei    Sales            100% establishmentor
    Ltd. (“Shijiazhuang     Province,China        Province,China                           investment
    Pioneer”)
    Hangzhou Yuzefeng     HangzhouCity,Zhejiang   HangzhouCity,Zhejiang                      Acquiredby
    Trading Co.,Ltd.      Province,China        Province,China         Sales            100% establishmentor
    (“Hangzhou Yuzefeng”)                                                       investment
    Jilin ChangyuPioneerWineChangchunCity,Jilin    ChangchunCity,Jilin                        Acquiredby
    Co., Ltd.(“JilinPioneer”)  Province,China        Province,China         Sales            100% establishmentor
                                                                        investment
    Beijing ChangyuPioneer                                                      Acquiredby
    Wine SalesCo.,Ltd.     BeijingCity,China      BeijingCity,China       Sales            100% establishmentor
    (“Beijing Pioneer”)                                                          investment
    Harbin ChangyuPioneer  HarbinCity,Heilongjiang  HarbinCity,Heilongjiang                      Acquiredby
    Wine SalesCo.,Ltd.     Province,China        Province,China         Sales            100% establishmentor
    (“Harbin Pioneer”)                                                          investment
    Hunan ChangyuPioneer  ChangshaCity,Hunan    ChangshaCity,Hunan                        Acquiredby
    Wine Co.,Ltd.(“Hunan   Province,China        Province,China         Sales            100% establishmentor
    Pioneer”)                                                               investment
    Yinchuan ChangyuPioneer YinchuanCity,NingxiaHui YinchuanCity,NingxiaHui                     Acquiredby
    Wine Co.,Ltd.(“Yinchuan AutonomousRegion,China AutonomousRegion,China   Sales            100% establishmentor
    Pioneer”)                                                               investment
    Kunming ChangyuPioneer KunmingCity,Yunnan    KunmingCity,Yunnan                       Acquiredby
    Wine Co.,Ltd.(“Kunming Province,China        Province,China         Sales            100% establishmentor
    Pioneer”)                                                               investment
    Chongqing Changyu                                                         Acquiredby
    Pioneer WineSalesCo.,   ChongqingCity,China    ChongqingCity,China     Sales            100% establishmentor
    Ltd. (“ChongqingPioneer”)                                                     investment
    Wuhan ChangyuPioneer  WuhanCity,Hubei      WuhanCity,HubeiProvince,                    Acquiredby
    Wine Co.,Ltd.(“Wuhan  Province,China        China               Sales            100% establishmentor
    Pioneer”)                                                               investment
    Hohhot ChangyuPioneer  HohhotCity,Inner      HohhotCity,InnerMongolia                    Acquiredby
    Wine Co.,Ltd.(“Hohhot  MongoliaAutonomous    AutonomousRegion,China  Sales            100% establishmentor
    Pioneer”)           Region,China                                            investment
    Chengdu ChangyuPioneer ChengduCity,Sichuan    ChengduCity,Sichuan     Sales            100% Acquiredby
    Wine Co.,Ltd.(“Chengdu  Province,China        Province,China                           establishmentor
                                                                Proportionof
       Nameofsubsidiary   Principalbusinesslocation     Registrationplace      Business   shareholding    Acquisitionmode
                                                         nature
                                                               Direct Indirect
    Pioneer”)                                                               investment
    Nanning ChangyuPioneer NanningCity,Guangxi    NanningCity,GuangxiZhuang                   Acquiredby
    Wine Co.,Ltd.(“Nanning  ZhuangAutonomous     AutonomousRegion,China   Sales            100% establishmentor
    Pioneer”)           Region,China                                            investment
    Lanzhou ChangyuPioneer LanzhouCity,Gansu     LanzhouCity,GansuProvince,                   Acquiredby
    Wine Co.,Ltd.(“Lanzhou  Province,China        China               Sales            100% establishmentor
    Pioneer”)                                                               investment
    YantaiRoullet-Fransac                                                        Acquiredby
    Imported WineSalesCo.,  YantaiCity,Shandong    YantaiCity,Shandong      Sales            100% establishmentor
    Ltd. (“Yantai         Province,China        Province,China                           investment
    Roullet-Fransac”)
    Hefei ChangyuPioneer   HefeiCity,AnhuiProvince, HefeiCity,AnhuiProvince,                     Acquiredby
    Wine Co.,Ltd.(“Hefei   China             China               Sales            100% establishmentor
    Pioneer”)                                                               investment
    Urumchi ChangyuPioneer UrumchiCity,Xinjiang   UrumchiCity,XinjiangUygur                   Acquiredby
    Wine Co.,Ltd.(“Urumchi  UygurAutonomousRegion, AutonomousRegion,China   Sales            100% establishmentor
    Pioneer”)           China                                                 investment
    Guangzhou Changyu    GuangzhouCity,       GuangzhouCity,Guangdong                    Acquiredby
    Pioneer WineCo.,Ltd.   GuangdongProvince,China Province,China         Sales            100% establishmentor
    (“Guangzhou Pioneer”)                                                       investment
                    YantaiCity,Shandong    YantaiCity,Shandong                        Acquiredby
    Wine SalesCo.,Ltd.     Province,China        Province,China         Sales       100%     establishmentor
                                                                        investment
    
    
    Explanation for difference between the proportion of shareholding and proportion of voting power
    
    in the subsidiaries:
    
    w(ah)oXsein6ji0a%ngoTf itahnezshhuariessaarseuhbesilddiabryythoef CthoemCpoamnyp.aTnhyeoCbotaminpeadnybyexmerecrigseesr faunldl caocnqturoislitoivoenr,
    
    tThheisopceornattriaocnt,airnrvaensgtemmeennt tanwdasfinexanpciriendg opnolAicuiegsuostf 6X,i2n0ji1a7n.gATfitaenrzthhuebeyxpciornattiroanct, athrreanmgienmoreintyt.
    
    isnhathreehAolrdtiecrlsesofofXAinsjsioacnigatiToina.nzhu shall enjoy/bear all rights/duties of shareholders specified
    
    f(bo)reiCghnainngvyeustoCr,hawtehaousei7s0a%Soinf oth-feosrehiagrnesjaorienthevledntbuyretheesCtaobmlisphaendy.bTyhethCeoCmopmanpyaneyxearcnidseas
    
    fcuolnltrcaocnttarorrlanogveemr ethnet. oTpheeractoionntr,acint vaerrsatmngeenmt eanntdwfiilnlaenxcpiinrge opnolDiceiceesmobfeCr 3h1an, g2y0u22C. hateau by
    
    (c) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreign
    
    Cinovmesptoarn,ywehxoesrecis4e9s%fulolf ctohnetroshl aorevserartheehoeplderabtyionth, einCvoesmtmpaennyt aanndd fiitnsansucibnsgidipaorileicsi.esThoef
    
    2L0a1n7g.faAnfgteCr athsteeel xbpyircaotniotrnacotf athrreancognemtraecntt.aTrrhaengceomnternatc,ttahreramnigneomrietyntsehxapreirheodldoenrsDoefcLemanbgefra3n1g,
    
    CAasssotecliantoiormn aolflytheenCjooym/upnadneyr.take all rights/duties of the shareholders agreed in the Articles of
    
    Y(da)nBtaeiijDineg’aCnhaantdeauBeiisjianglimQiintegdlalniagb, iilnitywchoicmhpathney Cjooimntplyaneystahbollidsshe9d0%byotfhethCeosmhapraensy. Tanhde
    
    BCeoimjinpganCyheaxteearucibseyscofunltlraccotnatrrroalngoevmerentth.eThoepecroantitoranc,t ianrvraenstgmemenetntanwdillfienxapnicreinognpSoelpicteiemsboefr
    
    2, 2019.
    
    i(ne)veIscteowr,inwehVoaselle5y1%is aofSitnhoe-fsohraeriegsn ajroeinht evlednbtuyretheestaCbolmishpeadnyb.yTthhee CCoommppaannyy eaxnedrcaisfeosrefiuglnl
    
    acorrnatnroglemoveenrt. tThheeocpoenratrtaiocnt ,arirnavnegsetmmeenntt wanildl efixnpainrecionngDpeocliecmiebseor f31Ic,e2w02in1e. Valley by contract
    
    C(f)omThpeanRyesaenadrcAh,gDriceuvletluorpaml Denetv&eloMpmaneunftacFtuunred,Cwohmopsaen6y8i%s aojof itnhteveshnatureres ewstearbelihsehleddbbyy tthhee
    
    tChoempoapneyraotinonJ,unienv3e0s,tm20e1n9t. AansdstaftiendaninciNngotep7o.l2ic7i,estheoCf omthpeanRyeesxeaerrcchis,esDfuelvlecloopnmtroelntove&r
    
    MMaanyuf2a2c,tur2e02C6o.mUpapnytobyJucnoentr3a0c,t 2ar0r1a9n,getmheentr.emThaienicnogntriancvtesatrmraenngtemofentthewilAl gerxicpuirleturoanl
    
    Development Fund accounted for 32% of the registered capital.
    
    9.1.2 Important non-wholly-owned subsidiaries
    
    Unit: Yuan
    
                        Shareholding     Profit/lossattributable Dividenddeclaredtobe  Balanceofminority
      Nameofsubsidiary   proportionofminority tominorityshareholders distributedtominority shareholder’sinterestat
                         shareholders        inthisperiod      shareholdersinthis     theendofperiod
                                                            period
    Xinjiang Tianzhu                  40%         -1,200,628                          49,412,020
    Marques delAtrio                  25%           464,844          1,367,975         29,878,944
    Changyu Chateau                  30%                                          12,365,016
    Langfang Castel                   51%           -752,237                          20,175,744
    Beijing Chateau                   10%                                          65,133,868
    Icewine Valley                    49%                                          33,319,062
    Indomita Wine                    15%           564,376                          53,709,304
    Kilikanoon Estate,                 20%           -301,829                          16,204,035
    
    
    Australia
    
    Epoxwplearnoaftiothne fmorindoirfifteyresnhcaerehboetlwdeeresninthtehepsroupbosirdtiioanrieosf: Ssheaerdehetoalidlsinign aNnodtep9ro.1p.o1r.tion of voting
    
    9.1.3 Main financial information of important non-wholly-owned subsidiaries
    
    Unit: Yuan
    
                          Endingbalance                             Beginningbalance
     Nameof
     subsidiary Current Non-currenTotalassets Current Non-curren  Total   Current Non-curren  Total   Current Non-curren  Total
            assets   tassets         liabilities tliabilities liabilities  assets   tassets   assets  liabilities tliabilities liabilities
    Xinjiang   26,891,77464,187,99891,079,771 -169,932 5,336,114 5,166,18127,390,49566,486,79593,877,290       5,336,114 5,336,114
    Tianzhu
    Changyu  126,947,614113,877,340240,824,954163,176,906      163,176,906141,298,023114,694,168255,992,191171,869,662      171,869,662
    Chateau
    Langfang  16,966,61615,672,54932,639,165 4,033,546       4,033,54617,659,51116,001,68233,661,193 3,358,322       3,358,322
    Castel
    Beijing   228,256,490458,433,952686,690,44245,912,267       45,912,267219,973,582461,115,089681,088,67162,598,545       62,598,545
    Chateau
    Icewine   61,748,34623,105,86084,854,20731,627,378  100,00031,727,37845,194,59123,920,89069,115,48114,974,458  100,00015,074,458
    Valley
    Marques  407,617,46592,937,395500,554,860304,115,81072,890,389377,006,198464,421,13099,080,668563,501,798381,659,31554,520,937436,180,252
    delAtrio
    Indomita  210,503,095295,300,215505,803,310138,985,158 4,861,038143,846,196214,784,490300,969,342515,753,832148,359,328 4,976,161153,335,489
    Wine
    Kilikanoon
    Estate,    82,656,71564,415,130147,071,84512,813,13752,227,85365,040,99087,634,70763,759,866151,394,57313,387,94251,893,17165,281,113
    Australia
    
    
    Unit: Yuan
    
                     Amountincurredinthisperiod                Amountincurredinpriorperiod
     Name of                       Total                                 Total
     subsidiary  OipnecroamtinegNetprofit comprehensive OcapsehrafltoinwgOipnecroamtinegNetprofit comprehensive  Ocapsehrafltoinwg
                                 income                               income
    Xinjiang             -3,001,571   -1,297,212   -417,462    18,803   -184,572     -184,572  10,284,801
    Tianzhu
    Changyu     24,470,842 -2,189,871     -686,874  6,946,282 43,226,910  2,861,474    2,861,474   2,419,427
    Chateau
    Langfang             -1,474,975     -821,013    25,801  5,038,281 -1,952,954   -1,952,954   -4,435,022
    Castel
    Beijing              12,711,985   22,752,823  9,667,568 78,502,666 15,243,700   15,243,700  12,282,145
    Chateau   90,339,526.00
    Icewine              -1,986,710     -754,056  1,903,734 27,305,133   905,396     905,396   2,018,740
    Valley    19,763,387.00
    Marques    129,064,457 1,859,381   -4,084,674 -23,846,960 148,197,893  1,214,012     -929,332  -21,783,821
    del Atrio
    Indomita     86,818,838 3,762,504    1,880,687  -1,725,571 93,719,341   -281,859   -4,460,814   -7,723,684
    Wine
    Kilikanoon
    Estate,      22,852,809 -1,509,147   -4,011,458  1,024,962 25,904,401   -115,317   -3,779,883   -1,469,903
    Australia
    
    
    10. Risks related to financial instruments
    
    The main financial instruments of the Group include monetary capital, bills receivable,
    
    accounts receivable, receivables financing, other receivables, other non-current financial assets,
    
    short-term loans, non-current liabilities due within one year, accounts payable, other payables,
    
    long-term accounts payable and long-term loans, etc. Please refer to Note 7 for details of each
    
    financial instruments. The risks related to these financial instruments and risk management policies
    
    adopted by the Group to reduce these risks are shown as follows. The management of the Group
    
    manages and monitors these risk exposures to ensure that the above-mentioned risks are controlled
    
    within a defined scope.
    
    The Group adopts sensitivity analysis techniques to analyze the possible influence of possible
    
    reasonable changes of risk variables on the current profits and losses and shareholders’ equity. Since
    
    any risk variable merely changes independently and the final influence of relevance between variables
    
    on the change of certain risk variable will exert a great effect, the following content is carried out
    
    under the hypothesis that each variable changes independently.
    
    The risk management objective of the Group is to achieve proper balance between risks and benefits,
    
    to minimize the negative influence of the risks on the business performance of the Group and to
    
    maximize the shareholders’ benefit. Based on this risk management objective, the basic risk
    
    management strategy of the Group is to determine and analyze various risks faced by the Group, to set
    
    up proper risk tolerance bottom line and to carry out risk management, and to supervise various risks
    
    timely and reliably to control the risks within a defined scope.
    
    10.1 Risk management objective and policy
    
    10.1.1 Market risk
    
    ① Foreign exchange risk
    
    Foreign exchange risk refers to the risk that causes loss due to exchange rate fluctuation. The foreign
    
    exchange risk borne by the Group is mainly relevant to EUR and USD. Except that the overseas
    
    subsidiaries of the Group purchase and sell in EUR, Chilean peso and AUD, which borrow in USD,
    
    and domestic subsidiaries deposit in EUR and USD, other main business activities of the Group are
    
    priced and settled in RMB. As at June 30, 2019, except that the assets and liabilities mentioned in the
    
    table below were the balance of deposits or loans shown in foreign currencies, other assets and
    
    liabilities of the entities of the Group were settled in their respective functional currencies.
    
    Unit: Yuan
    
                       Item                        Endingbalance           Beginningbalance
     Monetarycapital(EUR)                                        22,677                199,753
     Monetarycapital(USD)                                     50,339,468              51,283,910
     Short-termloans(USD)                                     75,621,700              75,495,200
    
    
    The foreign exchange risk caused by the assets and liabilities of such foreign currency balance may
    
    exert an influence on the business performance of the Group. The Group pays close attention to the
    
    influence of exchange rate fluctuation on the foreign exchange risk of the Group. The Group has not
    
    taken any measures to avoid the foreign exchange risk at present.
    
    Sensitivity analysis of foreign exchange risk
    
    With the other variables unchanged, the pre-tax influence of possible reasonable exchange rate
    
    fluctuation on current profit and loss and shareholders’ equity is shown as follows:
    
    Domestic entities:
    
    Unit: Yuan
    
       Item       Exchangeratefluctuation                          Thisperiod
                                       Influence onprofitinthisperiod   Influenceonshareholders’equity
     EUR     5%appreciationagainstRMB                        1,134                       1,134
     EUR     5%depreciationagainstRMB                        -1,134                      -1,134
     USD     5%appreciationagainstRMB                     2,339,288                    2,339,288
     USD     5%depreciationagainstRMB                     -2,339,288                   -2,339,288
    
    
    Overseas entities:
    
    Unit: Yuan
    
       Item       Exchangeratefluctuation                          Thisperiod
                                       Influence onprofitinthisperiod   Influenceonshareholders’equity
     USD     5%appreciationagainstEUR                        10,250                      10,250
     USD     5%depreciationagainstEUR                       -10,250                     -10,250
     USD     10%appreciationagainstCLP                      -115,086                    -115,086
     USD     10%depreciationagainstCLP                      115,086                     115,086
    
    
    Note: As at June 30, 2019, the management of the Group predicted that EUR and USD exchange rate
    
    against RMB, and USD exchange rate against EUR changed by 5%; and USD exchange rate against
    
    CLP changed by 15%.
    
    ② Interest rate risk – risk of change in cash flow
    
    The risk of change in cash flow of financial instruments caused by interest rate change of the Group is
    
    mainly relevant to the monetary capital and bank loan at floating interest rate. The policy of the Group
    
    is to maintain the floating interest rate of these loans to eliminate the risk of change in fair value of the
    
    interest rate.
    
    Sensitivity analysis of interest rate risk
    
    Sensitivity analysis of interest rate risk is based on the hypothesis that the change in market interest
    
    rate influences the interest income or expense of financial instruments at variable rate.
    
    The management of the Group thinks that the interest rate risk of deposit in bank borne by the Group
    
    is not significant, and therefore the sensitivity analysis of interest rate of deposit in bank is not
    
    disclosed here.
    
    On the basis of the above-mentioned hypothesis, with the other variables unchanged, the pre-tax
    
    influence of possible reasonable exchange rate fluctuation on current profit and loss and shareholders’
    
    equity is as follows:
    
    Unit: Yuan
    
       Item     Interestratechange                           Thisperiod
                                 Influenceonprofitofthisperiod       Influenceonshareholders’equity
     Bankloan   Increaseby50BP                        -323,958                         -323,958
     Bankloan   Decreaseby50BP                        323,958                          323,958
    
    
    Note: As at June 30, 2019, the management of the Group predicted that the bank floating rate changed
    
    by 50 basis points
    
    10.1.2 Credit risk
    
    As at June 30, 2019, the largest credit risk exposure possibly causing the financial loss of the
    
    Group was mainly caused by the loss generated by the financial assets of the Group due to
    
    failure of another party of the contract in fulfilling obligations.
    
    To lower the credit risk, the Group only trades with the recognized and reputable third party.
    
    In accordance with the policy of the Group, credit check shall be carried out for all customers
    
    who transact by means of credit. In addition, the Group conducts continuous monitoring on
    
    the balance of accounts receivable to ensure that the Group will not face major risk of bad
    
    debts. For transactions not settled with recording currency of relevant business units, unless
    
    the credit control department of the Group specially approves, the Group will not provide
    
    credit trade terms. In addition, the Group audits the collection of each single significant
    
    account receivable on each date of balance sheet to ensure that sufficient bad-debt provision
    
    is accrued for accounts unable to be collected. Therefore, the management of the Group
    
    thinks the credit risk borne by the Group is greatly reduced.
    
    Since the Group only trades with the recognized and reputable third party, no collateral is
    
    required. The credit risk is managed centrally according to the customer/counter-party,
    
    geographic area and industry. As at June 30, 2019, 18.3% of accounts receivable of the Group
    
    came from top five borrowers in accounts receivable of the Group (December 31, 2018:
    
    19.8%). The Group holds no collateral or other credit enhancement for the balance of
    
    accounts receivable.
    
    10.1.3 Liquidity risk
    
    When managing the liquidity risk, the Group reserves and monitors the cash and cash
    
    equivalents the management considers sufficient to satisfy the operation need of the Group
    
    and reduce the influence of fluctuation in cash flow. The management of the Group monitors
    
    the use of bank loans and ensures to abide by the loan agreement.
    
    11. Related parties and related transactions
    
    11.1 Particulars of the parent company of the Company
    
                                                              Proportionof     Proportionof
      Nameofparent   Registrationplace   Businessnature   Registeredcapital  shareholdingofthe  votingpowersof
        company                                              parentcompanyin theparentcompany
                                                              theCompany    intheCompany
    Changyu Group   YantaiCity      Manufacturing         50,000,000        50.40%        50.40%
    Company                     industry
    
    
    From January to June 2019, there was no fluctuation in the registered capital of the parent
    
    company and its share in equity interest and voting right.
    
    11.2 Particulars of the subsidiaries of the Company
    
    See particulars of the subsidiaries of the Company in Note 9.
    
    11.3 Particulars of other related parties
    
                Nameofotherrelatedparties            RelationshipbetweenotherrelatedpartiesandtheCompany
    YantaiChangyuWineCultureMuseumCo.,Ltd.(“Wine     Acompanycontrolledbythesameparentcompany
    Culture Museum”)
    YantaiChangyuWindowofInternationalWineCityCo.Ltd.   Acompanycontrolledbythesameparentcompany
    (“Window ofWineCity”)
    YantaiGodHorsePackingCo.,Ltd.(“GodHorsePacking”)   Acompanycontrolledbythesameparentcompany
    YantaiZhongyaMedicalHealthWineCo.,Ltd.(“Zhongya    Acompanycontrolledbythesameparentcompany
    Medical”)
    YantaiChangyuCulturalTourismProductSalesCo.,Ltd.     Acompanycontrolledbythesameparentcompany
    (“Cultural Sales”)
    YantaiChangyuCulturalTourismDevelopmentCo.,Ltd.     Acompanycontrolledbythesameparentcompany
    (“Cultural Development”)
    
    
    11.4 Related transactions
    
    11.4.1 Related transactions of purchasing and selling goods and providing and receiving
    
    services
    
    List of purchasing goods/receiving services
    
    Unit: Yuan
    
                     Related    Amountincurred Approvedtransaction   Exceedingthe    Amountincurredin
      Related parties    transactions    inthisperiod       amount     transactionamountor    priorperiod
                                                               not
    God HorsePacking Purchasing         74,970,845                                     95,990,354
                  goods
    Zhongya Medical   Purchasing          2,970,007                                      6,037,893
                  goods
    Wine Culture     Purchasing          7,324,199                                      9,475,159
    Museum         goods
    Window ofWine   Purchasing          6,853,112                                      2,857,130
    City            goods
    Cultural Sales     Purchasing            65,907
                  goods
    Cultural         Purchasing            40,458
    Development      goods
    
    
    List of selling goods/providing services
    
    Unit: Yuan
    
         Related parties         Relatedtransactions     Amountincurredinthis   Amountincurredinpriorperiod
                                                    period
    Wine CultureMuseum      Sellinggoods                       3,377,011               13,889,017
    Window ofWineCity      Sellinggoods                       3,891,101                8,773,612
    Zhongya Medical         Sellinggoods                       2,559,870                2,203,629
    God HorsePacking        Sellinggoods                          3,520                  15,742
    Cultural Sales           Sellinggoods                       3,873,204
    Cultural Development      Sellinggoods                       1,847,727                  220,759
    
    
    The price of transactions between the Group and the related parties are based on the
    
    negotiated price.
    
    11.4.2 Related trusteeship/contracting and mandatory administration/outsourcing
    
    Nil11.4.3 Leasing with related partiesThe Company as a lessor:
    
    Unit: Yuan
    
        Name ofthelessee       Typeofleasedassets    Rentalincomerecognizedin  Rentalincomerecognizedin
                                                   this period              priorperiod
    God HorsePacking         Officebuilding and                   742,883                739,491
                          plant
    Window ofWineCity       Officebuilding                      488,595                486,364
    Zhongya Medical          Officebuilding                      260,279                259,091
    
    
    The Company as a lessee:
    
    Unit: Yuan
    
        Name ofthelessor        Typeofleasedassets    Rentrecognizedinthisperiod   Rentrecognizedinprior
                                                                          period
    Changyu GroupCompany   Officebuildingandplant                  3,447,891              3,432,147
    
    
    11.4.4 Related guarantee
    
    Nil11.4.5 Inter-bank borrowing and lending of related parties
    
    Nil11.4.6 Asset transfer and debt recombination of related parties
    
    Nil11.4.7 Other related transactions
    
    Unit: Yuan
    
          Item           Note         Amountincurredinthisperiod      Amountincurredinpriorperiod
     Trademark usefee       (a)                                                     44,428,033
        Patentfee          (b)                                                        25,000
    
    
    11.5 Accounts receivable and payable of the related parties
    
    11.5.1 Accounts receivable
    
    Unit: Yuan
    
                                                   Ending balance        Beginningbalance
           Item               Relatedparties           Book    Provision             Provisionfor
                                                 balance    forbad   Bookbalance   baddebts
                                                           debts
    Accounts receivable   ZhongyaMedical                  4,384,629             2,768,391
    Accounts receivable   GodHorsePacking                                      17,137
    Accounts receivable   WindowofWineCity               1,777,525             1,911,157
    Other receivables     GodHorsePacking                1,626,880              813,440
    Other receivables     ZhongyaMedical                   285,000
    Other receivables     WindowofWineCity                535,000
    
    
    11.5.2 Accounts payable
    
    Unit: Yuan
    
             Item              Relatedparties         Endingbookbalance      Beginningbookbalance
    Accounts payable         GodHorsePacking                     36,227,351             55,366,785
    Accounts payable         ZhongyaMedical                       8,002,230              6,722,667
    Accounts payable         WineCultureMuseum                   7,301,765              4,646,731
    Accounts payable         WindowofWineCity                    1,139,407              4,789,600
    Accounts payable         CulturalSales                            6,360
    Other accountspayable     ChangyuGroupCompany                 3,775,362             78,414,978
    Other accountspayable     GodHorsePacking                                           450,000
    
    
    12. Commitment and contingency
    
    12.1 Significant commitment
    
    Unit: Yuan
    
               Item                    Endingbalance                 Beginningbalance
    Making long-termassetcommitments                   469,980,000                     996,675,000
    
    
    12.2 Contingency
    
    As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
    
    13. Matters after balance sheet
    
    13.1 Important non-adjusting events
    
    Nil13.2 Profit distribution
    
    Unit: Yuan
    
    Profits ordividendstobedistributed                                                  411,278,400
    Allocated profitsordividendsapprovedtodeclareupon                                     411,278,400
    discussion
    
    
    13.3 Other statement of events after the balance sheet date
    
    According to the decision of the Shareholders’ Meeting dated May 17, 2019, based on the issued
    
    capital stock of 685,464,000 shares in 2018, the Company allocated RMB 6 Yuan in cash (including
    
    tax) for every 10 shares to all shareholders with the total cash dividends of RMB 411,278,400 Yuan.
    
    Such cash dividends were distributed on July 8, 2019 and July 10, 2019 respectively.
    
    14. Other important matters
    
    Nil15. Notes on major items in financial statements of the parent company15.1 Accounts receivable
    
    15.1.1 Accounts receivable disclosed by type
    
    Unit: Yuan
    
                               Endingbalance                         Beginningbalance
                                  Provisionforbad                       Provisionforbad
                      Bookbalance                         Bookbalance
          Type                        debts                              debts
                                            Book value                            Bookvalue
                                      Accrued                             Accrued
                    Amount  Proportion Amount               Amount  Proportion Amount
                                      proportion                           proportion
    Accounts receivablefor
    which provisionforbad                                   1,447,973   100%               1,447,973
    debts isaccruedona
    single itembasis
    Accounts receivablefor
    bad debtsisaccruedona
    combined basis
    Total                                             1,447,973   100%               1,447,973
    
    
    15.1.2 Provision for bad debts accrued, withdrawn or transferred back in this period
    
    The provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn or
    
    transferred back in this period was RMB 0 Yuan.
    
    15.1.3 Accounts receivable actually cancelled after verification in this period
    
    Nil15.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the endingbalance
    
    Nil15.1.5 Accounts receivable derecognized due to transfer of financial assets
    
    Nil15.1.6 Accounts receivable transferred and included in assets and liabilities
    
    Nil15.2 Other receivables
    
    Unit: Yuan
    
                Item                     Endingbalance                Beginningbalance
    Interest receivable                                     277,785                      254,088
    Dividends receivable                                  4,103,925                   500,000,000
    Other receivables                                   522,211,903                   525,389,268
    Total                                           526,593,613                  1,025,643,356
    
    
    Remarks: The other receivables in the above list refer to those deducting interest receivable and dividends receivable.
    
    15.2.1 Interest receivable
    
    Unit: Yuan
    
                Item                     Endingbalance                Beginningbalance
    Fixed deposit                                        277,785                      254,088
    Entrusted loan
    Bond investment
    Total                                              277,785                      254,088
    
    
    15.2.2 Dividends receivable
    
    Unit: Yuan
    
         Item (ortheinvestedunit)              Endingbalance                Beginningbalance
    Dividends receivablefromsubsidiaries                      4,103,925                   500,000,000
    Total                                             4,103,925                   500,000,000
    
    
    15.2.3 Other receivables
    
    15.2.3.1 Particulars of other receivables classified by nature
    
    Unit: Yuan
    
                       Nature                     Endingbookbalance     Beginningbookbalance
                       Nature                     Endingbookbalance     Beginningbookbalance
    Accounts receivablefromsubsidiaries                           518,330,846             523,579,831
    Deposit andguarantymoneyreceivable                                                    12,500
    Other                                                   3,881,057               1,796,937
    Total                                                 522,211,903             525,389,268
    
    
    15.2.3.2 Disclosed by age
    
    Unit: Yuan
    
                       Age                                   Endingbalance
    Within 1year(including)                                                         422,841,109
    1-2 years                                                                     99,270,390
    2-3 years                                                                       100,404
    More than3years
    Total                                                                       522,211,903
    
    
    15.2.3.3 Provision for bad debts accrued, withdrawn or transferred back in this period
    
    TtrahnespferorrveidsiboanckfoirnbtahdisdpeebrtisodacwcaruseRdMinBth0iYs upaenri.od was RMB 0 Yuan; and that withdrawn or
    
    15.2.3.4 Accounts receivable actually cancelled after verification in this period
    
    Nil15.2.3.5 Other accounts receivable collected by the borrower of top 5 units ranked bythe ending balance
    
    Unit: Yuan
    
                                                               Percentage inthe  Endingbalance
               Unit             Natureof   Endingbalance     Age       totalending   ofprovisionfor
                                fund                            balanceofother    baddebts
                                                              accounts receivable
                             Internal
    Sales Company               incomings               Within1year           34.3%
                             andoutgoings    179,295,939
                             Internal
    R&D Company              incomings               Within1year           21.3%
                             andoutgoings    111,343,650
                             Internal
    Laizhou Wine                incomings               Within1year            1.1%
                             andoutgoings      5,549,972
                             Internal
    Penglai Sales                incomings               Within1year            0.8%
                             andoutgoings      3,992,770
                                                               Percentage inthe  Endingbalance
               Unit             Natureof   Endingbalance     Age       totalending   ofprovisionfor
                                fund                            balanceofother    baddebts
                                                              accounts receivable
                             Internal
    Indomita WineCompanyChile,SpA incomings               Within1year            0.6%
                             andoutgoings      3,330,413
    Total                          --        303,512,744     --              58.1%
    
    
    15.2.3.6 Accounts receivable related to governmental subsidy
    
    Nil15.2.3.7 Other accounts receivable derecognized due to transfer of financial assets
    
    Nil15.2.3.8 Other accounts receivable transferred and included in assets and liabilities
    
    Nil15.3 Long-term equity investment
    
    Unit: Yuan
    
                                Endingbalance                      Beginningbalance
           Item        Bookbalance  Impairment   Bookvalue   Bookbalance   Impairment    Bookvalue
                                  reserve                             reserve
    Investment in        7,420,803,069            7,420,803,069  7,420,803,069             7,420,803,069
    subsidiaries
    Investment inassociated
    enterprises andjoint
    ventures
    Total              7,420,803,069            7,420,803,069  7,420,803,069             7,420,803,069
    
    
    15.3.1 Investment in subsidiaries
    
    Unit: Yuan
    
                                                                Provision for   Endingbalance
       Investedunit    Beginning  Increaseinthis Decreaseinthis Endingbalance   impairment    ofimpairment
                     balance      period       period                accruedinthis    provision
                                                                  period
    Xinjiang Tianzhu     60,000,000                           60,000,000
    (a)
    Kylin Packaging     23,176,063                           23,176,063
    Changyu Chateau     28,968,100                           28,968,100
    (a)
    Pioneer            3,500,000                            3,500,000
    International (b)
                                                                Provision for   Endingbalance
       Investedunit    Beginning  Increaseinthis Decreaseinthis Endingbalance   impairment    ofimpairment
                     balance      period       period                accruedinthis    provision
                                                                  period
    Ningxia Growing     36,573,247                           36,573,247
    National Wine       2,000,000                            2,000,000
    Icewine Valley(a)    30,440,500                           30,440,500
    Beijing Chateau(a)   579,910,000                          579,910,000
    Sales Company       7,200,000                            7,200,000
    Langfang Sales(b)      100,000                             100,000
    Langfang Castel(a)   19,835,730                           19,835,730
    Wine Sales          4,500,000                            4,500,000
    Shanghai Marketing     300,000                             300,000
    (b)
    Beijing Marketing      850,000                             850,000
    Jingyang Sales(b)      100,000                             100,000
    Jingyang Wine(b)      900,000                             900,000
    Ningxia Wine      222,309,388                          222,309,388
    Ningxia Chateau    453,463,500                          453,463,500
    Chateau Tinlot(b)   212,039,586                          212,039,586
    Shihezi Chateau     812,019,770                          812,019,770
    Chang’an Chateau   803,892,258                          803,892,258
    Research,
    Development &    3,288,906,445                         3,288,906,445
    Manufacture
    Company (a)
    Huanren Wine       22,200,000                           22,200,000
    Wine Sales
    Company
    Francs Champs     236,025,404                          236,025,404
    Marques delAtrio   190,150,544                          190,150,544
    Indomita Wine      274,248,114                          274,248,114
    Kilikanoon Estate,   107,194,420                          107,194,420
    Australia
    Total           7,420,803,069                         7,420,803,069
    
    
    (a) The Company acquired 100% voting right and usufruct of such non-wholly-owned subsidiaries by
    
    means of contract arrangement. Please refer to Note 9.1.(b) The Company acquired 100% voting right of such subsidiaries by means of indirect holding through
    
    its wholly-owned subsidiaries.From January to June 2019, there were no restrictions for the invested entities of the Company to transferassets to the Company.
    
    15.4 Operating income and operating cost
    
    Unit: Yuan
    
                               Amountincurredinthisperiod          Amountincurredinpriorperiod
             Item
                               Income           Cost           Income            Cost
    Main business                   334,207,600       292,023,685       384,520,180       330,810,994
    Other business                   18,143,402        17,546,895        24,325,031        21,835,995
    Total                         352,351,002       309,570,580       408,845,211       352,646,989
    
    
    15.5 Investment income
    
    Unit: Yuan
    
                       Item                     Amountincurredinthis     Amountincurredinprior
                                                     period                 period
    Income fromlong-termequityinvestmentbycostmethod               264,221,755             312,409,576
    Income fromlong-termequityinvestmentbyequitymethod
    Investment incomefromdisposaloflong-termequity
    investment
    Investment incomeofthefinancialassetsmeasuredattheir
    fair valuesandthevariationofwhichisrecordedintothe
    current profitsandlossesduringtheholdingperiod
    Investment income gained from disposal of the financial
    assets measuredattheirfairvaluesandthevariationofwhich
    is recordedintothecurrentprofitsandlosses
    Investment incomeofheld-to-maturityinvestmentduringthe
    holding period
    Investment incomeoffinancialassetsheldforsaleduringthe
    holding period
    Investment incomegainedfromdisposaloffinancialassets
    held forsale
    Gains generatedfromtheremainingequityremeasuredasper
    fair valueafterthelossofcontrol
    Total                                                 264,221,755             312,409,576
    
    
    16. Supplementary materials
    
    16.1 List of non-current profits/losses in this period
    
    Unit: Yuan
    
                       Item                           Amount               Remark
    Profits/losses ondisposalofnon-currentassets                          1,138
    Tax return,deductionandexemptionapprovedbeyondthe
    authority orwithoutformalapprovaldocument
    Governmental subsidy included in the current profits/losses
    (excluding those closely related to the enterprise business and            64,211,892
    enjoyed in accordance with the unified standard quota or
    ration ofthestate)
    Payment foruseoffundsbynon-financialenterprisesincluded
    in thecurrentprofits/losses
    Income obtainedwhentheinvestmentcostobtainedbythe
    enterprise fromsubsidiaries,joint-runbusinessandjoint
    venture islessthanthefairvalueofthenetidentifiableassets
    obtained fromtheinvestedunitswhentheinvestmentismade
    Profits/losses onexchangeofnon-monetaryassets
    Profits/losses onentrustingotherpeopletomakeinvestment
    or manageassets
    Asset impairmentprovisionaccruedduetoforcemajeuresuch
    as naturaldisaster
    Profits/losses ondebtrestructuring
    Enterprise reorganizationexpensessuchasstaffing
    expenditure andintegrationexpenses,etc.
    Profits/losses onthosebeyondthefairvaluegeneratedfrom
    transactions withunfairtransactionprice
    Current netprofits/lossesonsubsidiariesacquiredfroma
    business combinationundercommoncontrolfromthe
    beginning totheconsolidationdate
    Profits/losses oncontingenciesirrelatedtothenormalbusiness
    of theCompany
                       Item                           Amount               Remark
    Profits/losses onchangesoffairvalueoftradablefinancial
    assets, derivativefinancialassets,tradablefinancialliabilities
    and derivativefinancialliabilities,andinvestmentincome
    from disposaloftradablefinancialassets,derivativefinancial
    assets, tradablefinancialliabilities,derivativefinancial
    liabilities andotherinvestmentincreditor'srights,excluding
    effective hedgingoperationsrelevanttothenormalbusinessof
    the Company
    Transfer-back ofaccountsreceivablewithsingleimpairment
    test andprovisionforimpairmentofcontractassets
    Profits/losses onexternalentrustedloans
    Profits/losses onfairvaluechangesofinvestmentrealestate
    with fairvaluemodeforfollow-upmeasurement
    Influence oftheone-timeadjustmentofthecurrent
    profits/losses inaccordancewithtaxandaccountinglawsand
    regulations onthecurrentprofits/losses
    Trustee feeincomefromentrustedoperation
    Other non-operatingincomeandexpenditurebesidesthe                 3,411,864
    above items
    Other profits/lossesconformingtothedefinitionof
    non-current profits/losses
    Minus: Influencedamountofincometax                          16,671,778
    Influenced amountofminorityshareholders’equity                      40,022
    Total                                                  50,913,094           --
    
    
    16.2 Return on net assets and earnings per share
    
                                    Weightedaveragereturnon           Earningspershare
          Profit incurredinthisperiod             netassets           BasicEPS        DilutedEPS
                                                          (Yuan/Share)       (Yuan/Share)
    Net profitattributabletocommon                        6.13%            0.88              0.88
    shareholders oftheCompany
    Net profitattributabletocommon
    shareholders oftheCompanydeducting                    5.62%            0.81              0.81
    non-incidental profits/losses
    
    
    16.3 Accounting data difference under domestic and foreign accounting standard
    
    16.3.1 Net profits & net assets difference disclosed in the financial report according to
    
    the international accounting standard and Chinese accounting standard
    
    Unit: Yuan
    
                                    Net profits                         Netassets
                         Amountincurredin Amountincurredinprior   Endingbalance    Beginningbalance
                            thisperiod           period
    In accordancewiththe           603,403,789         635,837,405      9,791,885,091      9,606,099,365
    Chinese accountingstandard
    Item &amountadjustedinaccordancewiththeinternationalaccountingstandard:
    In accordancewiththe
    international accounting          603,403,789         635,837,405      9,791,885,091      9,606,099,365
    standard
    
    
    XI. Reference Documents
    
    ((12))TThhee oFriigniannacliaolf 2S0t1at9emSeemntis-ananuutoaglrRapephoedrt aauntdogrsaigpnheedd bbyythtehechcahiramiramna. n, chief accountant and
    
    (a3c)cTohuentPanrotsspineccthuasragned. Public Offering Announcement for Stock B in 1997; The Prospectus and The
    
    (S4h)arTehse’ Corhiagningaels&oPf uablllicdoOcfufmereinngtsAannndouanncneomunecnetmofeSnttosctkhaAt ftohreSCtoocmkpAaniyn 2m0a0d0e. public during the
    
    report period in the newspapers designated by China Securities Regulatory Commission.
    
    Yantai Changyu Pioneer Wine Co., Ltd.
    
    Board of Directors
    
    August 28th, 2019

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