ANHUI GUJING DISTILLERY COMPANY LIMITED FIRST QUARTER REPORT 2018
April 2018
Gujing Aged Original Spirits First Quarter Report 2018 Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors, Supervisors and senior management of Anhui Gujing Distillery Company Limited (inclusive of its consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions in this Report. All theCompany’s Directors have attended the Board meeting for the review of this Report. Liang Jinhui, theCompany’s legal representative, Ye Changqing, theCompany’s Chief Accountant, and Zhu Jiafeng, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Gujing Aged Original Spirits First Quarter Report 2018 Part II Key Corporate Information
I Key Financial Information
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2018|January-March 2017|Change|
|Sales revenue (RMB)|2,559,879,006.93|2,173,056,581.04|17.80%|
|Net income attributable to shareholders of|581,079,212.12|407,764,742.43||
||||42.50%|
|the listed company (RMB)||||
|Net income attributable to shareholders of||||
|the listed company before nonrecurring|568,229,870.99|356,588,955.68|59.35%|
|gains and losses (RMB)||||
|Net cash flows from operating activities|193,972,491.77|648,773,393.57||
||||-70.10%|
|(RMB)||||
|Basic earnings per share (RMB/share)|1.15|0.81|41.98%|
|Diluted earnings per share (RMB/share)|1.15|0.81|41.98%|
|Weighted average return on equity (%)|8.61%|7.05%|1.56%|
||March 31, 2018|December 31, 2017|Change|
|Total assets (RMB)|11,503,386,290.94|10,152,862,119.05|13.30%|
|Equity attributable to shareholders of the|7,022,524,849.23|6,459,078,378.38||
||||8.72%|
|listed company (RMB)||||

Nonrecurring gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|Note|
|Gains and losses on disposal of non-current assets (inclusive of|||
||-893,789.30||
|offset allowance for asset impairments)|||
|Government subsidies charged to current profit and loss (exclusive|||
|of government subsidies given in the Company’s ordinary course|||
||2,147,822.47||
|of business at fixed quotas or amounts as per government’s|||
|uniform standards )|||
|Gains and losses on changes in fair value of trading financial|||
|assets and liabilities & investment income from disposal of trading|||
||9,149,247.17||
|financial assets and liabilities and available-for-sale financial|||
|assets (exclusive of effective portion of hedges that arise in the|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Company’s ordinary course of business)|||
|Non-operating income and expense other than above|6,886,594.87||
|Less: Income tax effects|4,290,666.88||
|Non-controlling interests effects (net of tax)|149,867.20||
|Total|12,849,341.13|--|

Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Nonrecurring Gains and Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Preferred shareholders with|||||
|Common shareholders at period-end||21,943||resumed voting rights at|||0||
|||||period-end (if any)|||||
|Top 10 shareholders|||||||||
|||Shareholding||||Pledged or frozen shares|||
|Name of|Nature of||||||||
|||percentage at|Shares||Restricted shares||||
|shareholder|shareholder|||||Status||Shares|
|||period-end (%)|||||||
||State-ownedjuridical person|53.89%|271,404,022||||||
|||||||Pledged||114,000,000|
||Foreign juridicalperson|2.92%|14,712,309||||||
||Foreign juridicalperson|2.47%|12,446,408||||||
||Other|1.65%|8,307,868||||||

Gujing Aged Original Spirits First Quarter Report 2018
|||||||
|-|-|-|-|-|-|
||Foreign juridicalperson|1.41%|7,096,361|||
||Other|1.38%|6,936,487|||
||Foreign juridicalperson|1.34%|6,752,388|||
||State-ownedjuridical person|1.30%|6,543,600|||
||Foreign juridicalperson|0.98%|4,949,038|||
||Foreign juridicalperson|0.98%|4,939,963|||
|Top 10 non-restricted shareholders||||||
|||||Type of shares||
|Name of shareholder||Non-restricted shares held at period-end||||
|||||Type|Shares|
|||271,404,022||RMB common||
||||||271,404,022|
|||||stock||
|||14,712,309||Domestically||
|||||listed stock for|14,712,309|
|||||foreign investors||
|||12,446,408||Domestically||
|||||listed stock for|12,446,408|
|||||foreign investors||

Gujing Aged Original Spirits First Quarter Report 2018
|||||
|-|-|-|-|
||8,307,868|||
|||RMB common||
||||8,307,868|
|||stock||
||7,096,361|Domestically||
|||listed stock for|7,096,361|
|||foreign investors||
||6,936,487|||
|||RMB common||
||||6,936,487|
|||stock||
||6,752,388|Domestically||
|||listed stock for|6,752,388|
|||foreign investors||
||6,543,600|RMB common||
||||6,543,600|
|||stock||
||4,949,038|Domestically||
|||listed stock for|4,949,038|
|||foreign investors||
||4,939,963|Domestically||
|||listed stock for|4,939,963|
|||foreign investors||
||Among the above shareholders, the Company's controlling shareholder, Anhui Gujing Group|||
||Co., Ltd., has no relationship with other shareholders and does not belong to the|||
||acting-in-concert stipulated in the Administrative Measures on Information Disclosure of|||
|Related or acting-in-concert parties||||
||Changes in Shareholding of Listed Companies. In addition, the relationship between other|||
|among shareholders above||||
||shareholders is unknown, and it is unknown whether it belongs to the acting-in-concert|||
||stipulated in the Administrative Measures on Information Disclosure of Changes in|||
||Shareholding of Listed Companies.|||
|Shareholders conducting securities||||
||N/A|||
|margin trading (if any)||||

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea√ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
Gujing Aged Original Spirits First Quarter Report 2018 Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable□ Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
|Balance sheet items||March 31, 2018||December 31, 2017|Change (%)|Explanation of why||
|||(RMB)||(RMB)||||
||1,813,496,352.34||720,611,126.78||151.66%|||
||76,361,753.26||41,729,637.34||82.99%|||
||74,496,000.00||200,750,000.00||-62.89%|||
||1,285,771,695.15||503,083,108.13||155.58%|||
||482,610,008.01||182,846,942.10||163.94%|||
|Income statement items||January-March||January-March|Change (%)|Explanation of why||
|||2018 (RMB)||2017 (RMB)||||
||27,448,214.89||62,391,926.18||-56.01%|||
||81,303.79||40,571.66||100.40%|||
||2,147,822.47||14,343,227.97||-85.03%|||
||581,079,212.12||407,764,742.43||42.50%|||
|Cash flows statement items||January-March||January-March|Change (%)|Explanation of why||
|||2018 (RMB)||2017 (RMB)||||
||193,972,491.77||648,773,393.57||-70.10%||Decrease in proceeds from sale|
||||||||of commodities and increase in|
||||||||notes receivable|
||476,038,045.85||1,424,018,432.80||-66.57%|||
||74,965,977.62||-145,592,375.71||151.49%|||

Gujing Aged Original Spirits First Quarter Report 2018 II Progress, Influence and Solutions Associated with Significant Events
□ Applicable√ Not applicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as explanation of why:
□ Applicable√ Not applicable
V Securities Investments
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Variet|Symb||||Opening||Closing|||||
||||Initial|Opening||Closing|||Gain/loss|||
|y of|ol of|Name of|||holding||holding|Closing|in|Accounting||
||||investment|holding||holding||book value|Reporting||Source|
|securit|securit|security|||percenta||percenta|||title||
||||cost (RMB)|(share)||(share)||(RMB)|Period|||
|y|y||||ge||ge||(RMB)|||
|||||||||||Available-for-s||
||60198||44,385,674.2|17,963,1||17,963,1||70,594,983.0|||Self-own|
|Stock||ZGYH|||||||0.00|ale financial||
||8||0|00||00||0|||ed funds|
|||||||||||assets||
|||||||||||Available-for-s||
||00000||70,317,243.9|8,040,88||8,040,88||87,645,690.1|||Self-own|
|Stock||PAYH|||||||0.00|ale financial||
||1||8|9||9||0|||ed funds|
|||||||||||assets||
|||Guangfa||||||||||
|||Nest Low||||||||||
|||Risk No.||||||||Available-for-s||
||||150,000,000.||||||8,841,868.||Self-own|
|Funds||1 E||0||0||0.00||ale financial||
||||00||||||22||ed funds|
|||Security||||||||assets||
|||Investme||||||||||
|||nt Funds||||||||||
|||CITIC||||||||||
|||Wings||||||||||
|||||||||||Available-for-s||
|||Dapu No.|200,000,000.|||||215,335,353.|||Self-own|
|Funds||||0||0|||0.00|ale financial||
|||1 Asset|00|||||08|||ed funds|
|||||||||||assets||
|||Manageme||||||||||
|||nt Plan||||||||||

Gujing Aged Original Spirits First Quarter Report 2018
||||||||||
|-|-|-|-|-|-|-|-|-|
||464,702,918.|26,003,9||26,003,9||373,576,026.|8,841,868.||
|Total|||--||--|||--|
||18|89||89||18|22||
|Disclosure date of|||||||||
|announcement on Board’s|||||||||
|consent for securities|||||||||
|investment|||||||||
|Disclosure date of|||||||||
|announcement on|||||||||
|shareholders’ meeting’s|||||||||
|consent for securities|||||||||
|investment (if any)|||||||||

VI Investments in Derivative Financial Instruments
√ Applicable□ Not applicable
Unit:RMB’0,000 (in RMB ten thousand yuan)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Proportio||
|||||||||||||n of||
|||||||||||||closing|Actual|
|||||||||Purchas|Sold in|||||
||Relations|||Initial|||Opening|||Impairme|Closing|investme|gain/los|
|||Related|Type of|||||ed in the|the|||||
||hip with|||investme|Startin|Endin|investme|||nt|investme|nt|s in the|
|Operator||transacti|derivativ|||||Reporti|Reporti|||||
||the|||nt|g date|g date|nt|||provision|nt|amount|Reporti|
|||on|e|||||ng|ng|||||
||Company|||amount|||amount|||(if any)|amount|in the|ng|
|||||||||Period|Period|||||
|||||||||||||Company|Period|
|||||||||||||’s closing||
|||||||||||||net assets||
|Reverse|||Reverse|||||||||||
|repurcha|||repurcha||March|April||||||||
|se of|Naught|No|se of||29,|9,|5,000|9,000|5,000||9,000|1.28%|10.01|
|national|||national||2018|2018||||||||
|debt|||debt|||||||||||
|Total|||||--|--|5,000|9,000|5,000||9,000|1.28%|10.01|
|Source of money used for investment||||All from the Company’s own funds||||||||||
|Legal matters involved (if applicable)||||N/A||||||||||
|Disclosure date of board announcement||||||||||||||
|||||August 30, 2013||||||||||
|approving derivative investment (if any)||||||||||||||
|Disclosure date of shareholders’||||||||||||||
|meeting announcement approving||||||||||||||
|derivative investment (if any)||||||||||||||
|Analysis of risks and control measures||||The Company had controlled the relevant risks strictly according to the Derivatives||||||||||
|associated with derivative investments||||Investment Management System.||||||||||

Gujing Aged Original Spirits First Quarter Report 2018
|||
|-|-|
|held in Reporting Period (including but||
|not limited to market risk, liquidity risk,||
|credit risk, operational risk, legal risk,||
|etc.)||
|Changes in market prices or fair value||
|of derivative investments in Reporting||
|Period (fair value analysis should|N/A|
|include measurement method and||
|related assumptions and parameters)||
|Significant changes in accounting||
|policies and specific accounting||
|principles adopted for derivative|N/A|
|investments in Reporting Period||
|compared to last reporting period||
||Based on the sustainable development of the main business and the sufficient free idle|
||money, the Company increased the profits through investing in the reasonable financial|
||derivative instruments, which was in favor of improving the service efficiency of the idle|
||funds. In order to reduce the investment risks of the financial derivative instruments, the|
||Company had set up corresponding supervision mechanism for the financial derivative|
|Opinion of independent directors on||
||instrument business and formulated reasonable accounting policy as well as specific|
|derivative investments and risk control||
||principles of financial accounting. The derivative Investment business developed separately|
||took national debts as mortgage object, which was met with the cautious and steady risks|
||management principle and the interest of the Company and shareholders. Therefore, agreed|
||the Company to develop the derivative Investment business of reverse repurchase of|
||national debt not more than the limit of RMB0.3 billion.|

VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Money by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Gujing Aged Original Spirits First Quarter Report 2018 Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Anhui Gujing Distillery Company Limited
March 31, 2018
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|1,753,027,095.79|1,484,088,626.40|
|Settlement reserve|||
|Interbank loans granted|||
|Financial assets at fair value through|||
||42,055.28|99,800.76|
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|1,813,496,352.34|720,611,126.78|
|Accounts receivable|25,975,449.39|22,466,143.06|
|Prepayments|76,361,753.26|41,729,637.34|
|Premiums receivable|||
|Reinsurance receivables|||
|Receivable reinsurance contract|||
|reserve|||
|Interest receivable|16,643,178.08|13,883,178.08|
|Dividends receivable|||
|Other receivables|18,677,957.65|15,390,106.14|
|Financial assets purchased under|||
|resale agreements|||
|Inventories|2,191,370,634.32|2,064,130,297.51|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|1,765,087,192.28|1,772,310,946.58|
|Total current assets|7,660,681,668.39|6,134,709,862.65|
|Non-current assets:|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Loans and advances to customers|||
|Available-for-sale financial assets|373,576,026.18|517,086,347.91|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|||
|Investment property|4,464,170.83|5,343,777.33|
|Property, plant and equipment|1,762,399,335.64|1,792,254,178.56|
|Construction in progress|55,170,402.14|54,496,798.56|
|Construction materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|687,728,842.34|691,381,442.67|
|R&D expense|||
|Goodwill|478,283,495.29|478,283,495.29|
|Long-term prepaid expense|66,624,518.64|69,238,523.78|
|Deferred income tax assets|85,983,805.49|92,157,477.74|
|Other non-current assets|328,474,026.00|317,910,214.56|
|Total non-current assets|3,842,704,622.55|4,018,152,256.40|
|Total assets|11,503,386,290.94|10,152,862,119.05|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from central bank|||
|Customer deposits and deposits from|||
|banks and other financial institutions|||
|Interbank loans obtained|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|74,496,000.00|200,750,000.00|
|Accounts payable|280,829,231.41|435,615,039.83|
|Advances from customers|1,285,771,695.15|503,083,108.13|
|Financial assets sold under repurchase|||
|agreements|||
|Handling charges and commissions|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|payable|||
|Payroll payable|324,781,563.98|372,374,014.37|
|Taxes payable|426,980,884.31|420,984,845.45|
|Interest payable|||
|Dividends payable|||
|Other payables|1,056,500,017.95|1,032,543,553.34|
|Reinsurance payables|||
|Insurance contract reserve|||
|Payables for trading of securities|||
|Payables for underwriting of|||
|securities|||
|Liabilities directly associated with|||
|assets classified as held for sale|||
|Current portion of non-current|||
|liabilities|||
|Other current liabilities|482,610,008.01|182,846,942.10|
|Total current liabilities|3,931,969,400.81|3,148,197,503.22|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|42,409,564.84|43,706,503.22|
|Deferred income tax liabilities|113,462,436.09|119,779,105.90|
|Other non-current liabilities|||
|Total non-current liabilities|155,872,000.93|163,485,609.12|
|Total liabilities|4,087,841,401.74|3,311,683,112.34|
|Owners’ equity:|||
|Share capital|503,600,000.00|503,600,000.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Capital reserves|1,295,405,592.25|1,295,405,592.25|
|Less: Treasury shares|||
|Other comprehensive income|35,888,086.17|53,520,827.44|
|Specific reserve|||
|Surplus reserves|256,902,260.27|256,902,260.27|
|General reserve|||
|Retained earnings|4,930,728,910.54|4,349,649,698.42|
|Total equity attributable to owners of|||
||7,022,524,849.23|6,459,078,378.38|
|Parent Company|||
|Non-controlling interests|393,020,039.97|382,100,628.33|
|Total owners’ equity|7,415,544,889.20|6,841,179,006.71|
|Total liabilities and owners’ equity|11,503,386,290.94|10,152,862,119.05|

 Legal representative: Liang Jinhui TheCompany’s chief accountant: Ye Changqing Head of theCompany’s financial department: Zhu Jiafeng
2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|1,560,630,499.05|1,276,262,109.02|
|Financial assets at fair value through|||
||42,055.28|99,800.76|
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|1,542,720,297.98|674,521,654.40|
|Accounts receivable|8,647,569.44|8,509,918.03|
|Prepayments|31,057,647.04|8,534,600.82|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|114,866,760.99|130,357,778.75|
|Inventories|1,933,160,333.81|1,818,358,884.18|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|1,390,504,300.42|1,554,870,774.98|
|Total current assets|6,581,629,464.01|5,471,515,520.94|

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Non-current assets:|||
|Available-for-sale financial assets|373,025,826.18|516,530,547.91|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|1,155,089,408.32|1,155,089,408.32|
|Investment property|26,021,322.14|26,409,050.95|
|Property, plant and equipment|1,282,527,806.15|1,303,119,011.66|
|Construction in progress|43,080,233.75|44,673,219.38|
|Construction materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|184,598,301.43|185,868,178.71|
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|54,275,744.76|58,563,409.89|
|Deferred income tax assets|37,996,747.93|37,996,747.93|
|Other non-current assets|12,474,026.00|12,474,026.00|
|Total non-current assets|3,169,089,416.66|3,340,723,600.75|
|Total assets|9,750,718,880.67|8,812,239,121.69|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|44,196,370.00|0.00|
|Accounts payable|214,579,037.90|347,757,180.53|
|Advances from customers|2,473,783,059.78|1,680,678,175.37|
|Payroll payable|82,345,180.87|110,435,403.45|
|Taxes payable|236,736,315.53|262,884,211.13|
|Interest payable|||
|Dividends payable|||
|Other payables|187,528,501.04|173,250,790.29|
|Liabilities directly associated with|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|assets classified as held for sale|||
|Current portion of non-current|||
|liabilities|||
|Other current liabilities|16,824,113.21|18,296,415.85|
|Total current liabilities|3,255,992,578.33|2,593,302,176.62|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|38,794,308.28|39,976,048.28|
|Deferred income tax liabilities|13,993,396.36|19,792,209.68|
|Other non-current liabilities|||
|Total non-current liabilities|52,787,704.64|59,768,257.96|
|Total liabilities|3,308,780,282.97|2,653,070,434.58|
|Owners’ equity:|||
|Share capital|503,600,000.00|503,600,000.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Capital reserves|1,247,162,107.35|1,247,162,107.35|
|Less: Treasury shares|||
|Other comprehensive income|35,826,195.11|53,454,736.38|
|Specific reserve|||
|Surplus reserves|251,800,000.00|251,800,000.00|
|Retained earnings|4,403,550,295.24|4,103,151,843.38|
|Total owners’ equity|6,441,938,597.70|6,159,168,687.11|
|Total liabilities and owners’ equity|9,750,718,880.67|8,812,239,121.69|

3. Consolidated Income Statement
Unit: RMB
Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Operating revenue|2,559,879,006.93|2,173,056,581.04|
|Including: Sales revenue|2,559,879,006.93|2,173,056,581.04|
|Interest revenue|||
|Premium revenue|||
|Handling charge and commission|||
|revenue|||
|2. Cost of operating revenue|1,809,442,510.38|1,698,418,322.96|
|Including: Cost of sales|518,797,750.19|485,600,237.86|
|Interest expense|||
|Handling charge and commission|||
|expense|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance|||
|contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|375,443,186.81|361,822,180.65|
|Selling expense|793,946,063.51|741,250,390.67|
|Administrative expense|127,311,977.26|120,878,754.27|
|Finance costs|-6,056,467.40|-11,133,240.49|
|Asset impairment losses|||
|Add: Gains on changes in fair value (“-”|||
||-27,498.41|-3,866.40|
|for losses)|||
|Investment income (“-” for loss)|27,448,214.89|62,391,926.18|
|Including: Share of profit or loss of|||
|joint ventures and associates|||
|Foreign exchange gains (“-” for losses)|||
|Asset disposal income (“-” for loss)|81,303.79|40,571.66|
|Other income|2,147,822.47|14,343,227.97|
|3. Operating income (“-” for loss)|780,086,339.29|551,410,117.49|
|Add: Non-operating revenue|6,907,556.84|7,630,463.01|
|Less: Non-operating expense|996,055.06|708,757.60|
|4. Pretax income (“-” for loss)|785,997,841.07|558,331,822.90|
|Less: Income tax expense|193,999,217.31|139,416,289.06|

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|5. Net income (“-” for net loss)|591,998,623.76|418,915,533.84|
|5.1 Net income from continuing|||
||591,998,623.76|418,915,533.84|
|operations (“-” for net loss)|||
|5.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|Attributable to owners of Parent|||
||581,079,212.12|407,764,742.43|
|Company|||
|Attributable to non-controlling|||
||10,919,411.64|11,150,791.41|
|interests|||
|6. Other comprehensive income, net of|||
||-17,632,741.27|-20,967,165.55|
|tax|||
|Attributable to owners of Parent|||
||-17,632,741.27|-20,967,165.55|
|Company|||
|6.1 Items that will not be|||
|reclassified to profit or loss|||
|6.1.1 Changes in net liabilities or|||
|assets caused by re-measurements on|||
|defined benefit pension schemes|||
|6.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified to profit or loss|||
|under equity method|||
|6.2 Items that may subsequently be|||
||-17,632,741.27|-20,967,165.55|
|reclassified to profit or loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified to profit or loss under|||
|equity method|||
|6.2.2 Gains/Losses on changes in|||
|fair value of available-for-sale financial|-17,632,741.27|-20,967,165.55|
|assets|||
|6.2.3 Gains/Losses arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale financial|||
|assets|||
|6.2.4 Effective gains/losses on|||
|cash flow hedges|||
|6.2.5 Differences arising from|||
|translation of foreign|||
|currency-denominated financial|||
|statements|||
|6.2.6 Other|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Attributable to non-controllin|g||
|interests|||
|7. Total comprehensive income|574,365,882.49|397,948,368.29|
|Attributable to owners of Paren|t563,446,470.85||
|||386,797,576.88|
|Company|||
|Attributable to non-controllin|g10,919,411.64||
|||11,150,791.41|
|interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|1.15|0.81|
|8.2 Diluted earnings per share|1.15|0.81|

 Legal representative: Liang Jinhui TheCompany’s chief accountant: Ye Changqing Head of theCompany’s financial department: Zhu Jiafeng
4. Parent Company Income Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Sales revenue|1,273,232,528.70|1,225,485,876.84|
|Less: Cost of sales|483,888,734.16|441,659,248.56|
|Taxes and surtaxes|316,554,892.27|315,040,162.76|
|Selling expense|22,167,564.98|91,453,417.90|
|Administrative expense|84,525,943.53|81,529,203.55|
|Finance costs|-4,400,795.16|-2,633,074.65|
|Asset impairment losses|||
|Add: Gains on changes in fair value(“-” for losses)|||
||-27,498.41|-3,866.40|
|Investment income (“-” for loss)|24,534,436.91|60,640,216.55|
|Including: Share of profit or lossof joint ventures and associates|||
|Asset disposal income (“-” forloss)|||
|Other income|1,181,740.01|14,138,227.97|
|2. Operating income (“-” for loss)|396,184,867.44|373,211,496.84|
|Add: Non-operating revenue|5,301,985.87|3,943,066.55|
|Less: Non-operating expense|955,584.15|646,594.22|
|3. Pretax income (“-” for loss)|400,531,269.16|376,507,969.17|

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Less: Income tax expense|100,132,817.29|94,126,992.30|
|4. Net income (“-” for net loss)|300,398,451.87|282,380,976.87|
|4.1 Net income from continuing|||
||300,398,451.87|282,380,976.87|
|operations (“-” for net loss)|||
|4.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|5. Other comprehensive income, net of|||
||-17,628,541.27|-21,722,327.16|
|tax|||
|5.1 Items that will not be reclassified|||
|to profit or loss|||
|5.1.1 Changes in net liabilities or|||
|assets caused by re-measurements on|||
|defined benefit pension schemes|||
|5.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified into profit or|||
|loss under equity method|||
|5.2 Items that may subsequently be|||
||-17,628,541.27|-21,722,327.16|
|reclassified to profit or loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit or loss|||
|under equity method|||
|5.2.2 Gains/Losses on changes in|||
|fair value of available-for-sale financial|-17,628,541.27|-21,722,327.16|
|assets|||
|5.2.3 Gains/Losses arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|5.2.4 Effective gains/losses on|||
|cash flow hedges|||
|5.2.5 Differences arising from|||
|translation of foreign|||
|currency-denominated financial|||
|statements|||
|5.2.6 Other|||
|6. Total comprehensive income|282,769,910.60|260,658,649.71|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.6|0.56|
|7.2 Diluted earnings per share|0.6|0.56|

Gujing Aged Original Spirits First Quarter Report 2018 5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||2,317,913,398.32|2,217,759,396.02|
|and rendering of services|||
|Net increase in customer deposits and|||
|deposits from banks and other financial|||
|institutions|||
|Net increase in loans from central|||
|bank|||
|Net increase in loans from other|||
|financial institutions|||
|Premiums received on original|||
|insurance contracts|||
|Net proceeds from reinsurance|||
|Net increase in deposits and|||
|investments of policy holders|||
|Net increase in proceeds from|||
|disposal of financial assets at fair value|||
|through profit or loss|||
|Interest, handling charges and|||
|commissions received|||
|Net increase in interbank loans|||
|obtained|||
|Net increase in proceeds from|||
|repurchase transactions|||
|Tax rebates|809,884.08|13,696,586.24|
|Cash generated by other operating|||
||36,191,356.85|106,104,856.09|
|activities|||
|Subtotal of cash generated by operating|||
||2,354,914,639.25|2,337,560,838.35|
|activities|||
|Payments for commodities and|||
||559,193,732.69|281,029,361.24|
|services|||
|Net increase in loans and advances to|||
|customers|||
|Net increase in deposits in central|||
|bank and in interbank loans granted|||
|Payments for claims on original|||
|insurance contracts|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Interest, handling charges and|||
|commissions paid|||
|Policy dividends paid|||
|Cash paid to and for employees|386,791,520.43|321,777,759.08|
|Taxes paid|880,876,488.87|873,979,926.33|
|Cash used in other operating|||
||334,080,405.49|212,000,398.13|
|activities|||
|Subtotal of cash used in operating|||
||2,160,942,147.48|1,688,787,444.78|
|activities|||
|Net cash flows from operating activities|193,972,491.77|648,773,393.57|
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|450,660,768.81|1,359,977,129.63|
|Investment income|25,292,217.04|64,034,803.17|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
||85,060.00|6,500.00|
|intangible assets and other long-lived|||
|assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||476,038,045.85|1,424,018,432.80|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|70,853,122.83|32,203,466.65|
|and other long-lived assets|||
|Payments for investments|330,218,945.40|1,537,407,341.86|
|Net increase in pledged loans granted|||
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
||401,072,068.23|1,569,610,808.51|
|activities|||
|Net cash flows from investing activities|74,965,977.62|-145,592,375.71|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||
|Including: Capital contributions by|||
|non-controlling interests to subsidiaries|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|||
|Including: Dividends paid by|||
|subsidiaries to non-controlling interests|||
|Cash used in other financing|||
|activities|||
|Subtotal of cash used in financing|||
|activities|||
|Net cash flows from financing activities|||
|4. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||268,938,469.39|503,181,017.86|
|equivalents|||
|Add: Cash and cash equivalents,|||
||1,024,088,626.40|527,849,026.07|
|beginning of the period|||
|6. Cash and cash equivalents, end of the|||
||1,293,027,095.79|1,031,030,043.93|
|period|||

6. Parent Company Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||1,095,672,510.95|1,719,269,247.73|
|and rendering of services|||
|Tax rebates|0.00|13,013,817.25|
|Cash generated by other operating|||
||60,289,004.82|29,416,467.68|
|activities|||
|Subtotal of cash generated by operating|||
||1,155,961,515.77|1,761,699,532.66|
|activities|||
|Payments for commodities and|||
||358,347,950.36|258,976,795.82|
|services|||
|Cash paid to and for employees|165,733,823.32|153,768,915.89|
|Taxes paid|559,374,536.53|545,332,001.77|

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Cash used in other operating|||
||49,683,984.62|44,903,998.58|
|activities|||
|Subtotal of cash used in operating|||
||1,133,140,294.83|1,002,981,712.06|
|activities|||
|Net cash flows from operating activities|22,821,220.94|758,717,820.60|
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|420,660,768.81|1,359,977,129.63|
|Investment income|25,135,723.89|64,034,803.17|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
|intangible assets and other long-lived|||
|assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||445,796,492.70|1,424,011,932.80|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|44,030,378.21|27,119,815.40|
|and other long-lived assets|||
|Payments for investments|140,218,945.40|1,474,407,341.86|
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
||184,249,323.61|1,501,527,157.26|
|activities|||
|Net cash flows from investing activities|261,547,169.09|-77,515,224.46|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|||

Gujing Aged Original Spirits First Quarter Report 2018
||||
|-|-|-|
|Cash used in other financing|||
|activities|||
|Sub-total of cash used in financing|||
|activities|||
|Net cash flows from financing activities|||
|4. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||284,368,390.03|681,202,596.14|
|equivalents|||
|Add: Cash and cash equivalents,|||
||826,262,109.02|225,792,686.26|
|beginning of the period|||
|6. Cash and cash equivalents, end of the|||
||1,110,630,499.05|906,995,282.40|
|period|||

II IndependentAuditor’s Report
Indicate by tick mark whether the Q1 financial statements have been audited by an independent auditor.
□Yes√ No
The Q1 financial statements have not been audited by such an auditor.