YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Yantai Changyu Pioneer Wine Co. Ltd.
2016 Semi-annual Report
2016-Final03
August 2016
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Contents
I、ImportantNotice, Contents andDefinition................................................................................3II、Brief Introduction fortheCompany .......................................................................................5III、Summary ofAccountingData andFinancialIndicators ......................................................7IV、BoardofDirectors’Report ....................................................................................................10V、MajorIssues .............................................................................................................................22VI、ChangesinSharesandtheShareholders’Situation ...........................................................31VII、Relativesituation forpreferredshares.................................................................................35VIII、Situation forDirectors, Supervisors, SeniorManagement .............................................36IX、Financial Report .....................................................................................................................37X、Catalogueof Documents forFutureReference.....................................................................130
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
I. Important Notice, Contents and Definition
The Board of Directors, the Board of Supervisors， directors, supervisors& senior management of the Company collectively and individually accept full responsibility for thetruthfulness，accuracy and completeness of the information contained in the semi-annual report andthere are no unfaithfulfacts, misleadingstatements orsignificantomissions. Except the following director, other directors have personally attended the Board ofDirectors’ meeting fordeliberatingthe semi-annualreport.
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|-|-|-|-|
|Nameof director notpersonallyattending theBoard ofDirectors’meeting|Position ofdirector notpersonallyattending theBoard ofDirectors’meeting|Reason ofnotpersonallyattendingtheBoard ofDirectors’meeting|Name ofentrustedperson|
|Mrs. Dai Hui|Director|Evection|Mr. SunLiqiang|

 The Company has no plan to distribute cash dividends and bonus shares; capital reserve will notbetransferred to equity in thesemi-annual.
Mr. Sun Liqiang(Chairman of the Company), Mr. Leng Bin (Chief Financial Officer) and Mr. Jiang Jianxun (Financial Manager) assure the truthfulness, accuracy and completeness of the financial report inthesemi-annual report.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Definition
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|-|-|-|
|Definition Item|Refers to|Definition Content|
|Company/The Company|Refers to|YantaiChangyu PioneerWineCo. Ltd.|
|Changyu Group/Controllingshareholder|Refers to|YantaiChangyu Group Co. Ltd.|
|CSRC|Refers to|ChinaSecurities Regulatory Commission|
|SSE|Refers to|Shenzhen StockExchange|
|DeloitteHuaYongCertified PublicAccountants Co.,LTD||DeloitteHuaYongCertified PublicAccountantsCo., LTD(special general partnership)|
|CNY|Refers to|ChineseYuan|

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
II、Brief
Introduction for the Company
1.Company’s information
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|-|-|-|-|
|AbbreviationoftheShares:|ChangyuA、ChangyuB|CodenumberoftheShares|000869、200869|
|AbbreviationoftheSharesafteralteration|-|||
|PlaceoflistingoftheShares|ShenzhenStockExchange|||
|LegalNameinChinese|烟台张裕葡萄酿酒股份有限公司|||
|AbbreviationofChinesename|张裕|||
|LegalNameinEnglish|YANTAICHANGYUPIONEERWINECOMPANYLIMITED|||
|AbbreviationofEnglishname|CHANGYU|||
|LegalRepresentative|Mr.SunLiqiang|||

2.Contact person andinformation
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|-|-|-|
||Secretary to the Board ofDirectors|Authorized Representative of theSecuritiesAffairs|
|Name|Mr.QuWeimin|Mr.LiTingguo|
|Address|56DamaRoad,Yantai,Shandong,China|56DamaRoad,Yantai,Shandong,China|
|Tel|0086-535-6633658|0086-535-6633656|
|Fax|0086-535-6633639|0086-535-6633639|
|E-mail|quwm@changyu.com.cn|stock@changyu.com.cn|

3.Other information
1)、TheCompany’scontactinformation
Whether thereis any change for theCompany’s registered address, officeaddress, post code, website and e-mail address during thereport period.
□Available V Not available
There is noany changefortheCompany’s officeaddress, post code, websiteand e-mail address during thereport period, please see2015annual report for more details.
2)、InformationdisclosureandfilingLocation
Whether thereis any change for the information disclosureand filling location during thereport
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
period.
□Available V Not available
There is noany change forthenewspapers inwhichtheCompany’s information is disclosed, website assigned byCSRCto carry thesemi-annual report and thefiling location during thereport period, pleasesee 2015annual report for moredetails.
3)、Registrationchanges
Whether thereis any change for the registration during thereport period.
VAvailable □Not available
|||||||
|-|-|-|-|-|-|
||Registrationdate|Registrationplace|Business licenseregistrationnumber|Taxregistrationnumber|Organizationcode|
|Registration atthebeginningofreportperiod|October14th,2013|ShandongAdministrationfor Industry &Commerce|370000018060122|National tax:37060216500338-1;Local tax:370601267100035|26710003-5|
|Registration attheend ofreport period|June17th,2016|ShandongAdministrationfor Industry &Commerce|913700002671000358|913700002671000358|913700002671000358|
|Inquiry date ofappointedwebsitedisclosed ininterimannouncement(ifhave)|no|||||
|Inquiry indexofappointedwebsitedisclosed ininterimannouncement(ifhave)|no|||||

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
III、
Summary of Accounting Data and Financial Indicators 1.Key accountingdata andfinancial indicators
Whether theCompanymakes retroactiveadjustments or restates the accounting data ofprevious fiscal years becauseof changes ofaccounting policy and/oraccounting errors.
□Yes V No
|||||
|-|-|-|-|
|Item|In thereport period|In the sameperiod oflast year|Moreor less thanthesameperiod oflast year(%)|
|Business revenue (CNY)|2,753,032,799|2,825,793,250|-2.57%|
|Net profit attributed to theshareholders ofthe listedcompany (CNY)|695,021,847|746,060,248|-6.84%|
|Net profit attributed to theshareholders of the listedcompany after deducting theirregular profit and loss(CNY)|678,478,321|739,432,003|-8.24%|
|Net cash flows from theoperating activities(CNY)|682,748,369|927,163,060|-26.36%|
|Basicearnings (CNY)per share|1.01|1.09|-7.34%|
|Diluted earnings (CNY) pershare|1.01|1.09|-7.34%|
|Return onnet assets (%)|8.78%|10.11%|-1.33%|
||At theend ofthereport period|At theend oflastyear|Moreor less thantheend oflast year|
|Total assets (CNY)|11,284,325,048|10,344,211,461|9.09%|
|NetAssets attributed to theshareholders ofthe listedcompany (CNY)|8,265,370,769|7,564,099,003|9.27%|

2.Accounting data differencebetween domestic and foreign accounting standards
1)、Difference in net profit and net asset disclosed in the financial report under the PRC accounting standardsandinternationalaccountingstandards.
VAvailable□Not available
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Unit:CNY
||||||
|-|-|-|-|-|
||Net profit belonged toshareholders oflistedcompany||Net asset belonged to shareholdersoflistedcompany||
||Amountincurrent period|Amount inlast period|Amountat theend ofthisperiod|Amountat thebeginningof thisperiod|
|Based onChineseaccountingstandard|695,021,847|746,060,248|8,265,370,769|7,564,099,003|
|Items and amount adjusted based oninternational accounting standard|||||
|Based oninternationalaccountingstandard|695,021,847|746,060,248|8,265,370,769|7,564,099,003|

2)、Difference in net profit and net asset disclosed in the financial report under the PRC accounting standardsandforeignaccountingstandards.
□Available V Not available
There is no difference in net profit and net asset disclosed in the financial report under the PRC accounting standards andforeign accounting standards during the report period.
3)、ExplanationofdifferenceinaccountingdatabasedonChineseandinternationalaccountingstandards□Available V Not available
3.Detailsofirregularprofitandloss
VAvailable □Not available
Unit: CNY
||||
|-|-|-|
|Item|Amount|Explanation|
|Gain ondisposal of non-current assets, includingthereversal of accrued impairment provision|-15,485||
|Taxreturn, deduction and exemptionwithunauthorized approval ornoofficial document of|12,116,257||

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
||||
|-|-|-|
|approval|||
|Government grants credited inprofit and loss(except for thoserecurring government grantsthat are closely related to theentity's operation,in linewith related regulations and have properbasis ofcalculation)|6,029,617||
|Other non-operatingexpense and income|3,459,361||
|Less: Income tax effect|5,046,224||
|Total|16,543,526|-|

The reasons shall be made clear and definitely as to the non-recurring profit and loss that the Company has defined by virtue of the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 - Non-recurring Profit and Loss and as to regarding the non-recurring profit and loss as recurrent profit and loss as specified in the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 -Non-recurring Profit and Loss.
□Available V Not available
There is nosituation regarding thenon-recurring profit andloss as definedand specified in the ExplanatoryAnnouncementonPublicCompany’sInformation Disclosure No.1 -Non-recurring Profit and Loss as recurrent profit and loss.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
IV、Board
ofDirectors’ Report
1.Summarization
During the report period, the need for high-end products in domestic wine industry was still weak, but the consumer demand began to increase mildly in some regions; middle-and-low-end wines suitable for the public and with a high sales volume in festival and holidaysdidn’t have a significant fluctuation. Overall, there was still strong competition existing in domestic wine market and the Company was facing a big operating pressure and challenge. Facing quite a lot of external disadvantages, the Company insisted on focusing on the market, adjusted marketing strategy, perfected sales channel and product structure, optimized the market layout and promoted sales of products with all strength, ensuring the stability of business performance and respectively accomplishing the sales revenue of CNY2753.03million with a year-on-year decrease of2.57% as well as the net profit of CNY695.67millionwith a year-on-yeardecreaseof6.75%.
2.Analysisto main business
1)Periodcomparisonofmainfinancialdata
Unit:CNY
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|-|-|-|-|-|
||In the reportperiod|In the sameperiod oflastyear|Moreorless (%)|Reason forchanges|
|Operating revenue|2,753,032,799|2,825,793,250|-2.57%|Mainly decreased sales volumeofproducts|
|Operating cost|902,734,104|932,522,743|-3.19%|Mainly decreased sales volumeofproducts|
|Sales expense|650,737,234|653,425,516|-0.41%|-|
|Managementexpense|122,695,845|119,770,340|2.44%|Mainlyincreased salary ofmanagement, administrativeexpense,depreciation cost,building tax and other taxes|
|Financial expense|10,988,233|-3,880,903|383.14%|Mainlydecreased interestincomeofbank deposit andincreased interest expenditureofbank loan|
|Income tax expense|238,715,481|245,727,101|-2.85%|Mainly decreased net profit onyear-on-yearbasis|
|R&D investment|5,546,825|5,534,562|0.22%|-|

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
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|-|-|-|-|-|
|Net amount of cashflowgenerated inoperating activities|682,748,369|927,163,060|-26.36%|Mainly increased cashpaid forgoods purchased andlaborservicereceived onyear-on-yearbasis|
|Net amount of cashflowgenerated ininvestment activities|-397,659,283|-432,181,002|7.99%|Mainlydecreased cash outflowgenerated byinvestmentactivitiesincluding purchaseand buildingoffixed assets|
|Net amount of cashflowgenerated infinancing activities|259,718,424|-23,919,692|1,185.79%|Mainly increased cashreceivedthrough bank loan|
|Net increasedamount ofcash andcash equivalents|551,693,393|470,554,249|17.24%|Mainlyincreased net amount ofcash flowgenerated byfinancing activities|

WhetherthereisanygreatchangefortheCompany’sprofitstructureorprofitsourceduringthereport period
□Available V Not available
There is nogreat change fortheCompany’s profit structure orprofit source during thereport period.
WhetherthereisanyfuturedevelopmentandplanningdisclosedinthepublicCompany’sshares
prospectus,collectingprospectusandassetrestructuringreportduringthereportperiod.
□Available V Not available
The Company does not discloseany future development and planning inthepublicCompany’s shares prospectus, collecting prospectus and asset restructuring report during the report period. 2)Review andsummary of theprogress situationduring thereport periodoftheCompany’s business plandisclosedin earlier stage
Firstly, the Company insisted on focusing on the market and strived to promote the integrated
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
development of multi-kinds of liquor. During the report period, the Company insisted the strategy of “mainly focusing on wine and fully developing multi-kinds of liquor”, further improved the sales system construction and marketing personnel assessment methods, adjusted sales structure and personnel in some regional markets, increasing the capacity of sales team; consolidating the market position of middle-and-high-end products, such as chateau wines and Jiebaina, through cultivating principal distributors in combination with full-time sales personnel; quickened the sales network layout of brandy and optimized the brandy product structure, making brandy achieve big breakthrough in some weak markets; energetically promoted the sales of imported products and increased the new development power owing to the favorable performance of overseas acquiredenterprises’brands as well as significant increase in sales of import products; orderly proceeded the pre-marketing preparatory work of new products, such as small-volume wine, sparkling wine with low alcohol and Tinlot chateau wine and so on, and owned the capability for further economic development.
Secondly, the Company strengthened the control of main costs and expenses to ensure the asset safety. During the report period, the Company conducted special audit for key expenses, such as processing charge, transportation fee, fuel fee, repair charge and greening fee and so on, conducted the audit for input and output of self-supporting grape bases and conducted the closing audit for investment projects; strengthened the financial management and audit supervision, ensuring the effective implementation of each regulation and effectively controlling theCompany’s main costs and expenses; built and improved the management system and relevant regulation of overseas subsidiaries, ensuring theasset safety and promotingthehealthy development.
Thirdly, the Company strengthened the construction of grape bases, striving to reduce the cost of grape materials and improve the quality of grapes. During the report period, the Company strengthened the input-and-output accounting and classified management of grape bases, reorganized the current grape bases and continued enhancing the “Large-scale, Standardization, Mechanization” construction of grape bases, favorably controlling the cost of grape cultivation and improving thequality ofmaterials.
Fourthly, the Company steadily boosted the construction of projects under construction, strengthened the project management, reasonably arranged the construction progress and assured the project quality; strictly controlled the newly-commenced project and avoided investment risks. During the report period, the Company preferably controlled the investment amounts of projects under construction and ensured the construction progress and quality through strengthening the project management, scientifically arranging construction progress, strictly conducting budget requirements and fully implementing the cost audit and the audit of final accounts; conformed to the changes of business environment, re-demonstrated the projects that have not been constructed,
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
cautiously made investment decision and postponed the start of some investment projects so as to avoid investingtoo early andappearing significant investmentrisk.
3)Thecompany’smain workand measures duringthe second halfyear of2016
Firstly, the Company will intensify the system construction of principal distributors and keep strengthening the sales of middle-and-high-end products, such as chateau wines, Jiebaina and brandy above three-star; keep enlarging the promotion of Zuishixian and Noble Rot and cultivating principal distributors in order to bring consistent and health development of middle-and-low-price products; implement “less employee, more salary” in some markets to improve the capability of sales team; introduce new products, such as sparkling wine, Tinlot chateau wine and small-volume products and so on, increase the sales of Atrio, Mirefleurs, Donelli, Koyac and otherbrands’products, and promote to complete the development exclusively for E-business products so as to form a new market growth point; take full use of new media and strengthen the communication with young people in order to buildconsumers’new cognition (internationalization, young and fashion-orientation) to Changyu brands and increase thebrand influence.
Secondly, the Company will scientifically arrange the construction progress of investment projects, strive to complete the construction and put into operation on schedule; collect project fund through multi-channels, improve the project management, increase the efficiency of fund use and make great efforts to control the construction costs.
Thirdly, the Company will conduct the production facilities construction as well as the equipment installation and commissioning work of main part in Yantai Changyu International Wine City (Yantai Changyu Industrial Park), strive to put it into operation before this September; further eliminate inefficient capacities, achieve the seamless connection between new productivity and old productivity, ensure the link between the production and sales, increase the production efficiency and reduce the production costs.
Fourthly, the Company will scientifically make grape procurement plans and implementation scheme, organize and deploy resources all around, fully complete the procurement of grape materials; consider eachparty’s interest, further prefect the grape-pricing mechanisms and reasonably determine the grape procurement price so as toassure the supplyof sufficient and superiormaterials.
3.Structure of main businesses
Unit: CNY
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|-|-|-|-|-|-|
|Operating|Operating|Gross|Increase or|Increase or|Increase or|

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
||||||||
|-|-|-|-|-|-|-|
||revenue|cost|profit(%)|decreaseofoperating revenueover thesameperiod oflastyear(%)|decrease ofoperating costoverthesameperiod of lastyear (%)|decrease ofgross profitoverthesameperiod of lastyear|
|Sector|||||||
|Wineandalcoholicbeverages|2,753,032,799|902,734,104|67.21%|-2.57%|-3.19%|0.15%|
|Product|||||||
|Wine|2,177,413,496|703,323,461|67.70%|-3.61%|-4.49%|0.30%|
|Brandy|540,377,902|183,423,536|66.06%|4.19%|3.31%|0.29%|
|Region|||||||
|Domestic|2,624,756,459|810,482,569|69.12%|-3.52%|-7.13%|1.20%|

 4.Analysisto core competitiveness
Compared with the participants in the arena of the Chinese wine sector, we believe that the Company is provided withthe following advantages:
Firstly, the Company has been enjoying a well-known wine brand since 120-odd years, “Changyu”, “Jiebaina” and“AFIP” are Chinesefamous trademarks thathave strong influence and good reputation. Secondly, the Company has set up a nationwide marketing network, formed a “three-level” marketing network system mainly composed of theCompany’s salesmen and dealers, possessed the strong marketing abilityand market exploitation ability.
Thirdly, the Company has already had strong research strength and a productR&D system, owned the only “State-level WineR&D Center”, made mastery of advanced winemaking technology and production processes, been powerful enough in product innovation and established a perfect quality
control system.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Fourthly, the Company is in possession of a lot of grape-growing bases to meet its future development, having developed a great deal of vineyards in the most suitable areas for wine grape growing such as in Shandong, Ningxia, Xinjiang, Liaoning, Hebei and Shaanxi, whose scales and structures have generally met theCompany’sneeds for development.
Fifthly, the Company has a great variety of products composed of all grades, its wine, brandy and sparkling wine of over 100 sorts can meet differentconsumers’ demands. The Company has taken the lead in the domestic wine sector through rapid development in the past 10-odd years and has possessed comparative superiority inthe futurecompetition.
All in all, the Company has built up a strong core competitive edge and obtained and maintained a relatively dominantposition inthe long-term market competition.
5.Analysis to investments
1)、Situationforequityinvestmentabroad
① Situationforinvestmentabroad
□Available V Not available
During the report period, thecompany didnot have investment abroad.
② Situationforholdingequityoffinancialenterprises
□Available V Not available
During the report period, thecompany didnot hold anyequity of financial enterprises.
③ Situationforsecurityinvestment
□Available V Not available
During the report period, there were nosecurity investments.
④ Situationforholdingequityofotherlistedcompanies
□Available V Not available
During the report period, thecompany didnot hold anyequity of otherlisted companies.
2)、Trustmanagement,derivativesinvestmentandentrustedloans
① Situationfortrustmanagement
□Available V Not available
During the report period, thecompany didnot have trust management.
② Situationforderivativesinvestment
□Available V Not available
During the report period, thecompany didnot have derivatives investment.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
③ Situationforentrustedloans
□Available V Not available
During the report period, thecompany didnot have entrusted loans.
3)、Useofraisedcapital
□Available V Not available
During the report period, there were nouse ofraised capital.
4)、Analysistothemajorsubsidiariesandjointstockcompanies
VAvailable □Not available
Information about themajorsubsidiaries and jointstock companies
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Unit:CNY
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|-|-|-|-|-|-|-|-|-|-|
|Companyname|Companytype|Industry|Mainproductsorservices|Registeredcapital|Totalassets|Netasset|Businessrevenue|Operatingprofit|Netprofit|
|YantaiChangyu-Castel Wine Chateau Co.LTD.|Subsidiary|Wine and alcoholicbeveragesindustry|Toresearch,produceandsellwineandsparklingwineaswellasthetourismservice|USD5million|254,982,086|61,415,854|25,120,685|-1,475,546|-1,835,054|
|LangfangCastel-ChangyuWineCo.LTD.|Jointstockcompany|Wine and alcoholicbeveragesindustry|Toproduceandsellwine|USD6,108,818.00|44,794,211|36,595,384|23,893,566|1,517,141|1,141,604|
|BeijingChateauChangyuAFIPGlobal|Subsidiary|Wine and alcoholicbeveragesindustry|Toresearch,produceandsellbrandyandwine|CNY110million|733,955,582|171,274,185|96,780,881|27,701,173|22,140,264|
|ChateauLiaoningChangyuIceWineCo.,Ltd.|Subsidiary|Wine and alcoholicbeveragesindustry|Toproduceicewine|CNY26.30million|89,524,743|54,602,855|16,400,216|-3,221,689|-3,220,773|
|Xinjiang Tianzhu WineryCo.,Ltd.|Subsidiary|Wine and alcoholicbeveragesindustry|To plant grape, produce and sell grapejuice,bulkwineandfruitwine|CNY75million|178,930,460|125,825,796|71,414,395|10,418,182|8,855,720|
|Spanish DICOTPARTNERS,S.L.|Subsidiary|Wine and alcoholicbeveragesindustry|To produce and manage wine and otherliquor|EUR2,385,732.00|414,758,775|135,074,799|138,454,701|2,737,024|2,677,035|

5)、Importantprojectsfinancedwithnon-raisedcapital
VAvailable □Not available
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
Unit:CNY’0000
|||||||||
|-|-|-|-|-|-|-|-|
|ProjectName|TotalPlannedInvestment|Investmentinthereportperiod|Actualaccumulationinvestmentuntiltheendofthereportperiod|Projectprogress|Projectbenefits|DisclosureDate||
|ConstructionofChangyu International Wine CityblendingandcoolingCenter|196,303|22,800|90,163|90.00%|---|2016.04.29|http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202265203?announceTime=2016-04-29|
|ConstructionofChangyu International Wine CityBottlingCenter|116,807|20,900|69,069|90.00%|---|2016.04.29||
|ConstructionofChangyuInternationalWineCityLogisticsCenter|37,468|9,000|28,944|100.00%|---|2016.04.29||
|ConstructionofChangyuVineandWineResearchInstitute|20,000|1,600|10,676|80.00%|---|2016.04.29||
|Construction of Treasure WineChateau|14,545|3,500|8,299|70.00%|---|2016.04.29||
|ConstructionofKoyacBrandyChateau|16,530|1,100|10,900|70.00%|---|2016.04.29||
|Investmentinlandscaping|5,000|980|4,844|85.00%|---|2016.04.29||
|TouristprojectofChangyuInternationalWineCity|100,000|3,000|3,000|0.00%|---|2016.04.29||
|Constructionofpioneerfranchisedstore|19,063|959|4,514|90.00%|---|2016.04.29||
|Total|525,716|63,839|230,409|--|--|||

6.ForecastfortheoperationachievementsfromJanuarytoSeptemberof2016
Caution andexplanation forthe prediction that thecumulativenet profit from thebeginning of the year to theend ofnextreport period could be inaloss orthere will bein agreat change comparing with thesame period of lastyear.
□Available V Not available
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
7. Explanation from the board of directors and the board of supervisors for the “Non-standard Audit Report”issuedbytheaccountantfirm
□Available V Not available
8.Explanationfromtheboardofdirectorsforthe“Non-standardAuditReport”oflastyear
□Available V Not available
9.Implementationofprofitdistributionduringthereportperiod
The implementationor adjustmentfor theprofit distribution policiesduring thereport period, especially thecash dividend plan andthescheme of increasing equity withcapital reserve
VAvailable□Not available
On July1st,2016,theCompany disclosed theAnnouncement ofDividend Distribution fortheyear 2015,according towhich theCompany would takethetotal capital stock 685,464,000shares (453,460,800 shares of StockAand 232,003,200shares ofStock B) at that timeas a cardinal number todistributeCNY5incash for per10shares to all stockholders (tax included; after
deduction oftaxes,as to StockA, QFII, RQFII as well as theindividuals holdingthe restricted reform-related shares,therestricted newshares and theinvestment fund holders would enjoy CNY4.5per 10shares; thedifferential dividend tax rates wouldbeadopted for theindividuals holding thenon-restricted reform-related shares, the non-restricted new shares and theunlimited shares, CNY5for per10sharesin advance and afterwards dependingontheinvestors’reduction of shares, making upthedifference according to theactual shares held ontheequity registration day; as to thedividend tax of securities investment funds holding the non-restricted reform-related shares, the non-restricted newshares and theunlimitedshares,10%offund shares willbe collected for Hong Kong investors while the differential dividend tax rates would be adopted for inland investors; astothenon-resident enterprises otherthan QFII and RQFII, theCompany would neither withhold norpay theincome tax ontheirbehalf but thetaxpayers should paythetax intheplace where the income isreceived.As to Stock B, thenon-resident enterprises would enjoy cash dividend CNY4.5 for per 10shares.Thedifferential dividend tax rates would be adopted for theinland (overseas) individual stockholders, CNY5forper 10shares inadvance andafterwards depending ontheinvestors’reduction ofshares, making upthedifference according tothe actual shares held onthe equity registration day.).
The share registration day ofStockAwas onJuly6th,2016and the ex-dividendday was onJuly 7th, 2016.
The last trading day ofB Stock was onJuly 6th,2016,theshareregistration day was onJuly 11th, 2016and theex-dividend day was onJuly7th,2016.
The totalcapital stock at theshare registration dayand the ex-dividend day are all 685,464,000 shares (453,460,800 shares of StockAand 232,003,200shares ofStock B).
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
The distributionobjects aretheCompany’s all StockAholders who registered at theChina
Securities Depository and Clearing Corporation Limited Shenzhen Company (hereinafter referred to as “ChinaClearing Shenzhen Company”)after themarket closingof theShenzhen Stock Exchange in theafternoon of July6th,2016andtheCompany’s allStock B holders who registered at the ChinaClearing Shenzhen Company after themarket closing oftheShenzhen Stock Exchange in the afternoon of July11th,2016.
The cash dividend for Stock A holders that the Company entrusted China Securities Depository and Clearing Corporation Limited Shenzhen Company to distribute was directly transferred to their accounts viasecurities service company (orother depository department) onJuly7th,2016.
The cash dividend for Stock B holders was directly transferred to their accounts via securities service company orotherdepository department onJuly11th,2016.
The cash dividend enjoyed by Yantai Changyu Group Co., Ltd. was directly paid by the Company at the sametime.
|||
|-|-|
|Specialexplanation||
|WhetheritisinaccordancewiththerequirementsoftheregulationintheArticlesofAssociationandtheresolutionofshareholders|Yes|
|Whetherthedistributionstandardandproportionisclearanddefinite|Yes|
|Whethertherelativedecisionprocessandmechanismiscomplete|Yes|
|Whethertheindependentdirectorsperformtheirresponsibilitiesandplaytheroles.|Yes|
|Whether the small and middle shareholders have the chance to express their advices and appeals, as well as theirlawfulrightandinterestisinanenoughprotection.|Yes|
|Whether it is legal and transparent for the condition and process while adjusting and amending the cash dividendsdistributionpolicy.|Yes|

10. Preliminary schemes of profit dividend and increasing equity with capital reserve during the report period
□Available V Not available
There are no schemes of paying cash dividend, bonus share and increasing equity with capital during the semi-annual period.
11.TheCompany’sReceptions,StudiesandVisits
VAvailable□Not available
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
|||||||
|-|-|-|-|-|-|
|Receptiontime|Receptionplace|Receptionway|Type ofreceptionobject|Receptionobject|Maindiscussedcontentsandtheinformationprovided|
|May5th,2016|MeetingroomoftheCompany|Fieldsurvey|Institution|Ms.HuangZhaoleifromUBSSecuritiesCompanyLimited;Ms.NingJingandMr.ZhouBofromFidelity(HK)CompanyLimited|Currentbusinessoperationsituationandotherissues|
|May12th,2016|MeetingroomoftheCompany|Fieldsurvey|Institution|Mr.LinChuanqinfromUni-PresidentSecuritiesInvestmentTrustCompanyLimited|Currentbusinessoperationsituationandotherissues|
|May26th,2016|MeetingroomoftheCompany|Fieldsurvey|Institution|Ms.QuShaopingfromGuotaiJunanSecuritiesCompanyLimited;Mr.ZhangShuaifromZhongtaiSecuritiesCompanyLimited;Mr.LongYufeifromZhongouFundManagementCompanyLimited;Mr.ZhangYansongfromIndustrialSecuritiesAssetManagementCompanyLimited;Ms.KongMengyaifromHaitongSecuritiesCompanyLimited;Mr.ShiJianpingfromAijianSecuritiesLimitedLiabilityCompany;Mr.ZhangQiaoxinfromChinaSecuritiesCompanyLimited|Currentbusinessoperationsituationandotherissues|
|June24th,2016|MeetingroomoftheCompany|Fieldsurvey|Institution|Mr.WangXiaodong,Ms.LiQingandMr.WangNanfromHuataiSecuritiesCompanyLimited|Currentbusinessoperationsituationandotherissues|

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
V、Major
Issues
1.Corporate GovernanceSituationofthe Company
The Company has according to relevant national laws and rules including the “Company Law of thePeople’s Republic of China”, “Securities Law of thePeople’s Republic of China” , “Guidelines on Corporate Governance of Listed Companies”, and also other laws and rules , established and constantly improved its legal entity structure, legally conducted its activities. Currently, theCompany’s corporate governance is in compliance with the Company Law and the relevant provisions of China Securities Regulatory Commission.
2.Litigation Issue
Material litigation and arbitration
□available √not available
There are nomaterial litigation and arbitration during thereport period.
OtherLitigation Issue
□available √not available
3.Media’s doubts
□available √not available
There are nocommon doubts issued byMedia during thereport period.
4.Bankruptcy reorganization
□available √not available
There are norelated issuesof bankruptcy reorganizationhappened during thereport period and until the report period.
5.Transaction inAssets
1)、Acquisitionofassets
□available √not available
There is noacquisition ofassets during thereport period and untilthereport period.
2)、 Assetsforsale
□available √not available
There are noassets forsale during thereport period and untilthereport period.
3)、Businessmerger
√available □not available
TheCompany’swholly owned subsidiary–Francs Champs Participations signed “EquityTransfer Agreement”with French Castel Company in2015,purchasing90%ofChateauMirefleurs’s equity
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
held byFrench Castel Company at theprice ofEUR3.33million.The merger has been completed within thereport period. For detailed situation,please see“8、Changes in scope ofconsolidation”in Financial Report ofthisreport.
6.Implementations andinfluences ofCompany’s equityincentive
□available √not available
There are noplans andimplementationsofCompany’sequity incentive during thereport period.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
7.Importantrelated transactions
1)、Relatedtransactionsinrelationtoroutineoperations
√available □not available
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparty|Interrelationship|Type ofrelatedtransaction|Content ofrelatedtransaction|Pricingprinciple ofrelatedtransaction|Price ofrelatedtransaction|Amount ofrelatedtransaction(CNY‘0000)|Proportionin thesame kindoftransaction(%)|Approvedtransactioncredit(CNY’0000)|Whetheror notexceedapprovedcredit|Settlementmethod ofrelatedtransaction|Marketpriceofsecurablesametransaction|Date ofdisclosure|Disclosureindex|
|YantaiChangyuGroup Co.Ltd.|ParentCo.|Leasingassets|Leasingstorage|On the baseof marketprice,negotiatedpricing|Agreementprice|292.9|0.32%|585.8|No|Cash|—|2016.04.29|http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202265212?announceTime=2016-04-29|
|YantaiChangyuGroup Co.Ltd.|ParentCo.|Leasingassets|Leasingbuildingsandfacilities|On the baseof marketprice,negotiatedpricing|Agreementprice|0|0%|309.3|No|Cash|—|2016.04.29||
|YantaiChangyuWine CultureMuseumCompany|Under the sameParentCo.|Sellingcommodities|Sellingliquorproducts|Onthebaseofmarketprice,negotiatedpricing|Agreementprice|766|0.28%|1,110|No|Cash|—|2016.04.29||
|YantaiChangyuWindow of|Under the sameParentCo.|Sellingcommodities|Sellingliquorproducts|On the baseof marketprice,|Agreementprice|500|0.18%|1,310|Yes|Cash|—|2016.04.29||

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|WineCityCo.||||negotiatedpricing|||||||||
|YantaiChangyuZhongyaMedicine &HealthyLiquors Co.,Ltd|Under the sameParentCo.|Sellingcommodities|Sellingliquorproducts|On the baseof marketprice,negotiatedpricing|Agreementprice|206|0.07%|218|No|Cash|—|2016.04.29|
|YantaiShenmaPackagingCo.Ltd.|Under the sameParentCo.|Sellingcommodities|Supplyingwater,powerandgas|On the baseof marketprice,negotiatedpricing|Agreementprice|77|0.03%|178|No.|Cash|—|2016.04.29|
|YantaiShenmaPackagingCo.Ltd.|Under the sameParentCo.|Purchasingand Consignprocessingpackingmaterials|Purchasingpackagematerials|On the baseof marketprice,negotiatedpricing|Agreementprice|7,191|7.97%|19,031|No|Cash|—|2016.04.29|
|YantaiChangyuWine CultureMuseumCompany|Under the sameParentCo.|Purchasingcommoditiesorservices|Purchasingliquorproducts’derivatives|On the baseof marketprice,negotiatedpricing|Agreementprice|464|0.51%|450|No|Cash|—|2016.04.29|
|YantaiChangyuWindow ofWineCityCo.|Under the sameParentCo.|Purchasingcommoditiesorservices|Purchasingliquorproducts’derivatives|On the baseof marketprice,negotiatedpricing|Agreementprice|30|0.03%|62|No|Cash|—|2016.04.29|
|Yantai|Under the same|Purchasing|Purchasing|On the base|Agreement|555|0.61%|1,173|No|Cash|—|2016.04.29|

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ChangyuZhongyaMedicine &HealthyLiquors Co.,Ltd|ParentCo.|commoditiesorservices|liquorproducts’|of marketprice,negotiatedpricing|price|||||||||
|YantaiChangyuGroup Co.Ltd.|ParentCo.|Intangibleassetslicenseduse|Permissionto use thetrademark|On the baseof marketprice,negotiatedpricing|Agreementprice|4,627|100%|8,,908|No|Cash|—|2016.04.29||
|YantaiChangyuGroup Co.Ltd.|ParentCo.|Intangibleassetslicenseduse|Permissionto usepatents|On the baseof marketprice,negotiatedpricing|Agreementprice|2.5|100%|5|No|Cash|—|2016.04.22||
|Total||||--|--|14,711.4|--|33,340.1|--|--|--|--|--|
|Thedetailsofthelargesalesreturns||||No.||||||||||
|The total amount of the transaction will be expectedaccording to its category and its actual performance duringthereportperiod(ifhave)||||No.||||||||||
|The reasons of big differences between the transaction priceandthemarketreferenceprice(ifavailable)||||No.||||||||||

2)、 Relatedtransactionsinassetprocurementandsale
□available √not available
There are norelated transactions inasset procurement and saleduring thereport period.
3)、Importantrelatedtransactionsinjointexternalinvestment
□available √not available
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
There are noimportant related transactions in joint external investmentduring thereport period.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
4)、Recordofrelatedcreditsandliabilities
□available √not available
There is norecord of non-operating related credits and liabilities.
5)、Otherimportantrelatedtransactions
□available √not available
There are noother important related transactions inthereport period.
8. Controlling shareholder and related party in funds occupation situation of non-operating of theListed Company
□available √not available
There are no situation in controlling shareholder and related party in funds occupation of non-operating of theListed Company.
9.Major andimportant contracts and execution results
1)、Trusteeship,contractandleaseholdissues
① Trusteeship situation
□available √not available
There are notrusteeships happened during thereport period
② Contract situation
√available □not available
The explanationofContract situation
During the report period, about the contract operation situation, please see Annex 7 “Notes to consolidated financial statement”intheFinancial Report ofthis report.
Project ingains and losses forthe Companytoachieve morethan10% ofthe totalprofit
□Available √ NotAvailable
There are no contract projects in gains and losses for the Company to achieve more than10% of the total profit during thereport period.
③Leasehold situationexplanation
√available □not available
On 1stJanuary 2012,theCompany renewed theSpace LeaseAgreement with thecontrolling
shareholder Changyu Group, theCompany leased thespace with 57749.77square meters located at 174Shihuiyao Road, Zhifu District,YantaiCity and thespace with 3038square meters located at 56 Dama Road, Zhifu District,Yantai City,which are all under thename ofcontrolling shareholder. The rent of theabovespaces per year is CNY5.858million with aperiod of5years from 1st
January 2012to 31stDecember 2016.
Project ingains and losses forthe Companytoachieve morethan10% ofthe totalprofit
□Available√ NotAvailable
There are noleasehold projects in gains and losses fortheCompany toachieve morethan10%of the totalprofit during thereport period.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
2)、Guaranteesituation
□available √not available
There are noguarantees situation duringthe report period.
3)、 Otherimportantcontracts
□available √not available
There are noother important contracts during thereport period.
4)、 Othersubstantialtransaction
□available √not available
There is noothersubstantial transaction during thereport period.
10. The commitments of the Company or shareholders of the Company holding more than5%duringthe report period oruntil thereport period
√available □not available
|||||||
|-|-|-|-|-|-|
|Commitments|CommitmentParty|Commitmentcontent|Commitmenttime|Commitmentperiod|Implementation|
|Commitmentsatsharereform|-|－||||
|Commitmentsmadeinacquisitionreportorequitychangesreport|-|-||-|-|
|Commitmentsatassetrestructuring|-|-||-|-|
|Commitmentsattheinitialpublicofferingorrefinancing|YantaiChangyuGroupCo,Ltd|SolvingIntra-industrycompetition|1997.05.18|Forever|Hasbeenperformed|
||YantaiChangyuGroupCo.,Ltd|Clearing Purpose of trademarkroyalty|1997.05.18|Forever|Hasbeenperformed|
|CommitmentsmadetotheminorityshareholdersoftheCompany|-|-||-|-|
|Commitmentundertimelyimplementationornot|Yes|||||
|Specificreasonsofnotcompletingtheimplementationandthenextstep|No|||||

11.Theappointmentand dismissal ofcertifiedpublicaccountants
During the report period, the Company reappoints Deloitte Hua Yong Certified PublicAccountants
Co., LTDas theCompany’s auditorin 2016.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
12.Punishmentand rectification
□available√ not available
There is nopunishment andrectification situation happened during thereport period.
13.Withdrawal risk revelationof violating laws andrules
□available√ not available
There is nowithdrawal risk revelation ofviolatinglaws andrules during thereport period.
14.Explanation forother significantmatters
□available√ not available
There are noother significant matters duringthereport period.
15.Corporate bondssituation
Whether thereare corporate bonds which are issued publicly andlisted at stock exchanges, and which are not yet dueat theauthorized disclosuredate ofsemi-annual reportorhaven’t not been cashed in full amount at theexpiry date.
No
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
VI、Changes
in Shares and theShareholders’ Situation
1.Changes inshares
Unit:Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Amountbeforethischange||Change (+,-)|||||Amountafterthischange||
||Amount|Percentage%|Allotnewshare|Distributebonusshare|Transferothercapitaltosharecapital|others|Subtotal|Amount|Percentage%|
|2、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%|
|3、Totalshares|685,464,000|100%||||||685,464,000|100%|

 Cause ofshare change
□available√ not available
Approval ofstock change
□available√ not available
Transfer of changedshares
□available√ not available
The influence ofstock change onthe financial indicators such as basic earnings pershare, diluted earnings per share ofthelatest year and the latest period, net asset pershare belonging totheCompany’s common stock holders, etc..
□available √not available
Other contents which the Company thinksnecessarily or securities regulatory departments claim to disclose.
□available √not available
Changes situationintheCompany’s totalshares, structure ofshareholders,theCompany’sassets and liabilities
□available √not available
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
2.Thenumber ofshareholders of theCompany andtheshareholdings
Unit:share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Totalcommonshareholdersattheendofreportperiod||36,425(19,641ofStockAand16,784ofStockB)||||Totalnumberofpreferredshareholderrecoveringvotingpowerattheendofreportperiod||0|||
|Shareholdersholdingmorethan5%orbecomeatop10shareholders.|||||||||||
|NameofShareholders|Characterofshareholders||Percentage(%)|Shareshelduntiltheendofthereportperiod|Changesduringthereportperiod|Numberofrestrictedshares|Numberofunrestrictedshares||Pledgedorfrozen||
||||||||||Sharestatus|Amount|
|YANTAI CHANGYU GROUP CO.LTD.|Domesticnon-state-ownedlegalperson||50.40%|345,473,856|0||345,473,856||||
|GAOLINGFUND,L.P.|Foreign legalperson||3.11%|21,300,919|0||21,300,919||||
|CHINA SECURITIES FINANCECORPORATIONLIMITED|State-ownedlegalperson||2.33%|15,987,255|-10,200||15,987,255||||
|BBHBOSS/AFIDELITYFD-CHINAFOCUSFD|Foreign legalperson||2.22%|15,241,826|-334,300||15,241,826||||
|GOLDENCHINAMASTERFUND|Foreign legalperson||1.03%|7,089,916|-300,000||7,089,916||||
|GREENWOODS CHINA ALPHAMASTERFUND|Foreign legalperson||0.99%|6,773,544|-1,843,927||6,773,544||||
|NORGESBANK|Foreign legalperson||0.96%|6,584,748|886,296||6,584,748||||
|Tian’anPropertyinsuranceCO.,LTD—Baoying No.1|Domesticnon-state-ownedlegalperson||0.86%|5,896,731|5,896,731||5,896,731||||
|GUOTAIJUNANSECURITIES(HONGKONGLIMITED)|Foreignlegalperson||0.81%|5,522,276|852,704||5,522,276||||
|CENTRALHUIJININVESTMENTLIMITED|State-ownedlegalperson||0.69%|4,761,200|0||4,761,200||||
|Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholders|||No||||||||

YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
||||||
|-|-|-|-|-|
|Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholders|Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown.||||
|Thetop10shareholderswithunrestrictedshares|||||
|NameofShareholders||Numberofunrestrictedshareshelduntiltheendofthereportperiod|Typeofshare||
||||Typeofshare|Amount|
|YANTAICHANGYUGROUPCO.,LTD.||345,473,856|Ashare|345,473,856|
|GAOLINGFUND,L.P.||21,300,919|Bshare|21,300,919|
|CHINASECURITIESFINANCECORPORATIONLIMITED||15,987,255|Ashare|15,987,255|
|BBHBOSS/AFIDELITYFD-CHINAFOCUSFD||15,241,826|Bshare|15,241,826|
|GOLDENCHINAMASTERFUND||7,089,916|Bshare|7,089,916|
|GREENWOODSCHINAALPHAMASTERFUND||6,773,544|Bshare|6,773,544|
|NORGESBANK||6,584,748|Bshare|6,584,748|
|Tian’anPropertyinsuranceCO.,LTD—Baoying No.1||5,896,731|Ashare|5,896,731|
|GUOTAIJUNANSECURITIES(HONGKONGLIMITED)||5,522,276|Bshare|5,522,276|
|CENTRALHUIJININVESTMENTLIMITED||4,761,200|Ashare|4,761,200|
|Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholders||Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown.|||
|ExplanationfortheTop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusiness||Thetop10Shareholdersisnotinvolvedinfinancingactivitiesandstocktradingbusiness.|||

Whether ornotto be agreed to buyback trading byCompany shareholders during thereport period□Yes√ No
There is noagreed tobuyback trading by Company shareholders during thereport period.
3.Controlling shareholder orchanges of theactual controllers situation
Changes ofthecontrolling shareholder during the report period
□available √ not available
There is noany change ofthecontrolling shareholderduring thereport period.
Changes oftheactual controllers during thereport period
□available √ not available
There is noany Change oftheactual controllers during thereport period
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
4.Company’s shareholders and Consistent behavior person offer or carry out the plan of increasing rights issueduring theperiod.
□available √ not available
In the contextofCompany known,Company’s shareholders and Consistent behavior person didnot offer orcarry out theplan of increasing rightsissueduring theperiod.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
VII、elative
situation for preferred Shares
□available √ not available
There are nopreferred shares during thereport period.
YantaiChangyuPioneerWineCo.Ltd.2016Semi-annualReport
VIII、Situation
for Directors, Supervisors, Senior Management 1.Changes inshareholdings ofdirectors, supervisors and seniormanagement
□available √ not available
There are noany changes in shareholdings ofdirectors, supervisors and senior management during the report period, details see2015annual report
2.Personnel changesin Company'sdirectors, supervisors andsenior management
√ available □not available
||||||
|-|-|-|-|-|
|Name|Positionsheld|Type|Date|Reason|
|SunLiqiang|ChairmantotheBoardofDirectors|Elected|2016.05.26|-|
|ZhouHongjiang|Vice-chairmantotheBoardofDirectorsandGeneralmanager|Elected|2016.05.26|-|
|LengBin|DirectorandVice-generalmanager|Elected|2016.05.26||
|QuWeimin|Director,Vice-generalmanagerandSecretarytotheBoardofDirectors|Elected|2016.05.26|-|
|ZhangMing|Director|Elected|2016.05.26|-|
|ChenJizong|Director|Leaveaftertenure|2016.05.26|-|
|AugustoReina|Director|Elected|2016.05.26|-|
|AldinoMarzorati|Director|Elected|2016.05.26|-|
|AntonioAppignani|Director|Elected|2016.05.26|-|
|DaiHui|Director|Elected|2016.05.26|-|
|XiaoWei|Independentdirector|Leaveaftertenure|2016.05.26|-|
|WangZhuquan|Independentdirector|Elected|2016.05.26|-|
|WangShigang|Independentdirector|Elected|2016.05.26|-|
|KongQingkun|ChairmantotheBoardofSupervisors|Elected|2016.05.26|-|
|ZhangLanlan|Supervisor|Elected|2016.05.26|-|
|LiuZhijun|Supervisor|Elected|2016.05.26|-|
|GuoYing|Supervisor|Leaveaftertenure|2016.05.26|-|
|YangMing|Vice-generalmanager|Appointed||-|
|LiJiming|Chiefengineer|Appointed||-|
|JiangHua|Vice-generalmanager|Appointed||-|
|SunJian|Vice-generalmanager|Appointed||-|
|JiangJianxun|Financemanager|Appointed||-|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.IX、Financial
Report
1.Auditreport
Whetherthesemi-annual report has been audited
□ Yes√ No
Thesemi-annual report has not beenaudited.
2.Financial statement
Theunit in thestatement ofthefinancial annotations is RMBYuan.
2.1Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
|||||
|-|-|-|-|
|Item|Note|Endingbalance|Beginningbalance|
|Currentassets:||||
|Monetaryfund|7.1|1,834,011,453|1,285,362,414|
|Settlementreserves||||
|Lendingfunds||||
|Financialassetsmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitandloss||||
|Derivativefinancialassets||||
|Billsreceivable|7.2|216,068,017|113,988,122|
|Accountsreceivable|7.3|190,619,346|197,795,091|
|Advancepayment|7.4|1,882,857|3,591,098|
|Premiumreceivable||||
|Reinsuranceaccountsreceivable||||
|Receivablereservesforreinsurancecontract||||
|Interestreceivable|7.5|10,597,464|8,019,338|
|Dividendsreceivable||||
|Otherreceivables|7.6|52,020,362|46,146,487|
|Buy-in/sell-outfinancialassets||||
|Inventories|7.7|1,846,973,146|2,260,852,964|
|Assetsclassifiedasholdingandavailableforsale||||
|Non-currentassetsduewithinoneyear||||
|Othercurrentassets|7.8|72,314,194|48,449,551|
|Totalcurrentassets||4,224,486,839|3,964,205,065|
|Non-currentassets:||||
|Offeringloansandimprest||||
|Available-for-salefinancialassets|7.9|345,365|402,814|
|Held-to-maturityinvestments||||
|Long-termreceivables||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Item|Note|Endingbalance|Beginningbalance|
|Long-termequityinvestments||||
|Investmentrealestate||||
|Fixedassets|7.10|3,060,879,719|3,089,245,185|
|Constructioninprogress|7.11|2,746,671,930|2,005,990,308|
|Constructionmaterials||||
|Disposaloffixedassets||||
|Productivebiologicalassets|7.12|213,066,292|192,198,283|
|Oilandgasassets||||
|Intangibleassets|7.13|457,478,541|463,899,916|
|Developmentexpenditure||||
|Goodwill|7.14|119,486,579|105,504,426|
|Long-termprepaidexpenses|7.15|184,975,882|175,124,167|
|Deferredtaxassets|7.16|259,796,155|302,406,656|
|Othernon-currentassets|7.17|17,137,746|45,234,641|
|Totalnon-currentassets||7,059,838,209|6,380,006,396|
|Totalassets||11,284,325,048|10,344,211,461|
|Currentliabilities:||||
|Short-termloans|7.18|666,553,181|665,581,921|
|BorrowingsfromtheCentralBank||||
|Customerandinterbankdeposits||||
|Borrowingfunds||||
|Financialliabilitiesmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitandloss||||
|Derivativefinancialliabilities||||
|Billspayable|7.19|8,130,000|29,000,000|
|Accountspayable|7.20|371,213,214|569,278,368|
|Advancesfromcustomers|7.21|363,853,981|234,566,504|
|Financialassetssoldforrepurchase||||
|Handlingfeesandcommissionspayable||||
|Employeebenefits|7.22|143,058,770|190,239,451|
|Taxespayable|7.23|-66,369,334|41,285,107|
|Interestpayable|7.24|993,011|977,304|
|Dividendspayable||||
|Otherpayables|7.25|688,773,399|509,226,395|
|Dividendpayableforreinsurance||||
|Reservesforinsurancecontracts||||
|Actingtradingsecurities||||
|Actingunderwritingsecurities||||
|Liabilitiesclassifiedasholdingandavailableforsale||||
|Non-currentliabilitiesduewithinoneyear|7.26|133,174,814|156,335,647|
|Othercurrentliabilities|7.27|11,181,873|11,241,873|
|Totalcurrentliabilities||2,320,562,909|2,407,732,570|
|Non-currentliabilities:||||
|Long-termborrowings|7.28|96,812,039|71,686,629|
|Bondspayable||||
|Including:Preferredstock||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Item|Note|Endingbalance|Beginningbalance|
|Perpetualcapitalsecurities||||
|Long-termaccountspayable||305,000,000||
|Long-termemployeeremunerationspayable||||
|Specialaccountspayable||||
|Estimatedliabilities||||
|Deferredincome|7.29|64,372,808|69,836,411|
|Deferredtaxliabilities|7.16|33,561,414|34,350,349|
|Othernon-currentliabilities|7.30|4,047,476|4,047,476|
|Totalnon-currentliabilities||503,793,737|179,920,865|
|Totalliabilities||2,824,356,646|2,587,653,435|
|Owner’sequity:||||
|Capitalstock|7.31|685,464,000|685,464,000|
|Otherequityinstruments||||
|Including:Preferredstock||||
|Perpetualcapitalsecurities||||
|Capitalsurplus|7.32|565,955,441|565,955,441|
|Minus:Treasurystock||||
|Othercomprehensiveincome|7.33|-4,192,593|-10,442,512|
|Specialreserves||||
|Surplusreserves|7.34|342,732,000|342,732,000|
|Generalriskpreparation||||
|Retainedearnings|7.35|6,675,411,921|5,980,390,074|
|Totalowner’sequitiesattributabletotheparentcompany||8,265,370,769|7,564,099,003|
|Minorityequity||194,597,633|192,459,023|
|Totalowner’sequities||8,459,968,402|7,756,558,026|
|Totalliabilitiesandowner’sequities||11,284,325,048|10,344,211,461|

 Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:JiangJianxun
2.2Balance sheetof theparent company
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd. Unit:Yuan
|||||
|-|-|-|-|
|Item|Note|Endingbalance|Beginningbalance|
|Currentassets:||||
|Monetaryfund||651,156,049|280,818,833|
|Financialassetsmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitandloss||||
|Derivativefinancialassets||||
|Billsreceivable||83,285,165|38,429,319|
|Accountsreceivable|15.1|643,457|2,392,870|
|Advancepayment||692,647|445,619|
|Interestreceivable||10,597,464|8,019,338|
|Dividendsreceivable|||788,092,349|
|Otherreceivables|15.2|5,996,770,824|5,734,456,129|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Item|Note|Endingbalance|Beginningbalance|
|Inventories||698,090,569|728,173,107|
|Assetsclassifiedasholdingandavailableforsale||||
|Non-currentassetsduewithinoneyear||||
|Othercurrentassets||20,226,824|22,700,317|
|Totalcurrentassets||7,461,462,999|7,603,527,881|
|Non-currentassets:||||
|Available-for-salefinancialassets||||
|Held-to-maturityinvestments||||
|Long-termreceivables||||
|Long-termequityinvestments|15.3|1,423,725,152|1,423,725,152|
|Investmentrealestate||||
|Fixedassets||358,616,108|369,506,014|
|Constructioninprogress||7,064,987|7,990,777|
|Constructionmaterials||||
|Disposaloffixedassets||||
|Productivebiologicalassets||123,094,017|110,961,189|
|Oilandgasassets||||
|Intangibleassets||73,191,949|74,381,525|
|Developmentexpenditure||||
|Goodwill||||
|Long-termprepaidexpenses||||
|Deferredtaxassets||35,472,970|37,938,692|
|Othernon-currentassets||||
|Totalnon-currentassets||2,021,165,183|2,024,503,349|
|Totalassets||9,482,628,182|9,628,031,230|
|Currentliabilities:||||
|Short-termloans||598,000,000|601,297,447|
|Financialliabilitiesmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitandloss||||
|Derivativefinancialliabilities||||
|Billspayable||||
|Accountspayable||106,048,766|273,091,182|
|Advancesfromcustomers||||
|Employeebenefits||63,402,695|71,058,615|
|Taxespayable||-9,021,130|19,331,311|
|Interestpayable||993,011|977,304|
|Dividendspayable||||
|Otherpayables||376,440,988|994,821,281|
|Liabilitiesclassifiedasholdingandavailableforsale||||
|Non-currentliabilitiesduewithinoneyear||129,914,400|127,345,600|
|Othercurrentliabilities||1,767,054|1,767,054|
|Totalcurrentliabilities||1,267,545,784|2,089,689,794|
|Non-currentliabilities:||||
|Long-termborrowings||||
|Bondspayable||||
|Including:Preferredstock||||
|Perpetualcapitalsecurities||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Item|Note|Endingbalance|Beginningbalance|
|Long-termaccountspayable||||
|Long-termemployeeremunerationpayable||||
|Specialaccountspayable||||
|Estimatedliabilities||||
|Deferredincome||||
|Deferredtaxliabilities||||
|Othernon-currentliabilities||||
|Totalnon-currentliabilities||67,071,981|80,530,907|
|Totalliabilities||1,334,617,765|2,170,220,701|
|Owner’sequity:||||
|Capitalstock||685,464,000|685,464,000|
|Otherequityinstruments||||
|Including:Preferredstock||||
|Perpetualcapitalsecurities||||
|Capitalsurplus||557,222,454|557,222,454|
|Minus:Treasurystock||||
|Othercomprehensiveincome||||
|Specialreserves||||
|Surplusreserves||342,732,000|342,732,000|
|Retainedearnings||6,562,591,963|5,872,392,075|
|Totalowner’sequities||8,148,010,417|7,457,810,529|
|Totalliabilitiesandowner’sequities||9,482,628,182|9,628,031,230|

 Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:JiangJianxun
2.3Consolidated profitstatement
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd. Unit:Yuan
|||||
|-|-|-|-|
|Item|Note|Sumofcurrentperiod|Sumofpriorperiod|
|1.Totaloperatingincome||2,753,032,799|2,825,793,250|
|Including:Operatingincome|7.36|2,753,032,799|2,825,793,250|
|Interestincome||||
|Earnedpremium||||
|Handlingfeeandcommissionincome||||
|2.Totaloperatingcosts||1,840,237,208|1,842,448,784|
|Including:Operatingcosts|7.36|902,734,104|932,522,743|
|Interestexpenditure||||
|Handlingfeesandcommissionexpenditure||||
|Premiumrebate||||
|Netamountofindemnityexpenditure||||
|Netamountofthewithdrawnreservefund forinsurancecontract||||
|Policybonuspayment||||
|Amortizedreinsuranceexpenditures||||
|Taxesandsurcharges|7.37|153,081,792|140,611,088|
|Sellingexpenses|7.38|650,737,234|653,425,516|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Administrativeexpenses|7.39|122,695,845|119,770,340|
|Financialexpenses|7.40|10,988,233|-3,880,903|
|Lossforimpairmentofassets||||
|Plus:Fairvaluechargeprofit(lossislistedwith"-")||||
|Investmentprofit(lossislistedwith"-")||||
|Including: Investmentprofit forjoint-runbusinessandjointventure||||
|Exchangeincome(lossislistedwith"-")||||
|3.Operatingprofit(lossislistedwith"-")||912,795,591|983,344,466|
|Plus:Non-operatingincome|7.41|21,933,526|8,796,834|
|Including:Gainsondisposalofnon-currentassets||94,567|2,985|
|Minus:Non-operatingexpenses|7.42|343,776|353,951|
|Including:Lossesondisposalofnon-currentassets||110,052|1,564|
|4.Totalprofits(totallossislistedwith"-")||934,385,341|991,787,349|
|Minus:Incometaxes|7.43|238,715,481|245,727,101|
|5.Netprofit(netlossislistedwith"-")||695,669,860|746,060,248|
|Attributabletoowneroftheparentcompany||695,021,847|746,060,248|
|Minorityshareholderinterests||648,013||
|6.Netafter-taxamountofothercomprehensiveincome|7.44|6,701,754|-4,144,991|
|Netafter-taxamountofothercomprehensiveincomeattributabletoowneroftheparentcompany||6,249,919|-4,144,991|
|6.1Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater||||
|6.1.1Netliabilitiesornetassetschangeafterremeasuringandresettingthebenefitplans||||
|6.1.2Shareenjoyedinothercomprehensiveincomenottobereclassifiedintoprofitandlossininvestedunitunderequitylaw||||
|6.2Othercomprehensiveincometobereclassifiedintoprofitandlosslater||6,249,919|-4,144,991|
|6.2.1Shareenjoyedinothercomprehensiveincometobereclassifiedintoprofitandlossininvestedunitunderequitylaw||||
|6.2.2Profitandlossfromchangesinfairvalueoffinancialassetsforsale||||
|6.2.3Profitandlossfromreclassificationofheld-to-maturityinvestmentintofairvalueoffinancialassetsforsale||||
|6.2.4Effectivepartofprofitandlossofcash-flowhedge||||
|6.2.5DifferenceintranslationofForeignCurrencyFinancialStatement||6,249,919|-4,144,991|
|6.2.6Other||||
|Netafter-taxamountofothercomprehensiveincomeattributabletominorityshareholders||451,835||
|7.Totalcomprehensiveincome||702,371,614|741,915,257|
|(1)Attributabletoowneroftheparentcompany||701,271,766|741,915,257|
|(2)Attributabletominorityshareholders||1,099,848||
|8.Earningspershare||||
|(1)Basicearningspershare||1.01|1.09|
|(2)Dilutedearningspershare||1.01|1.09|

Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
Manager:JiangJianxun
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 2.4Profitstatement ofthe parentcompany
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
|||||
|-|-|-|-|
|Item|Note|Sumofcurrentperiod|Sumofpriorperiod|
|1.Operatingincome|15.4|655,299,000|689,053,229|
|Minus:Operatingcosts|15.4|501,312,599|548,385,836|
|Taxesandsurcharges||73,401,856|75,959,486|
|Sellingexpenses||||
|Administrativeexpenses||55,027,172|57,715,566|
|Financialexpenses||18,250,416|-7,041,547|
|Lossforimpairmentofassets||||
|Plus:Fairvaluechargeprofit(lossislistedwith"-")||||
|Investmentprofit(lossislistedwith"-")|15.5|683,891,453|46,770,286|
|Including:Investmentprofitforjoint-runbusinessandjointventure||||
|2.Operatingprofit(lossislistedwith"-")||691,198,410|60,804,174|
|Plus:Non-operatingincome||1,141,128|3,158,421|
|Including:Gainsondisposalofnon-currentassets||94,567||
|Minus:Non-operatingexpenses||36,839|301,089|
|Including:lossesondisposalofnon-currentassets||21,839||
|3.Totalprofits(totallossislistedwith"-")||692,302,699|63,661,506|
|Minus:Incometax||2,102,811|4,222,805|
|4.Netprofit(netlossislistedwith"-")||690,199,888|59,438,701|
|5.Netafter-taxamountofothercomprehensiveincome||||
|5.1Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater||||
|5.1.1Netliabilitiesornetassetschangeafterremeasuringandresettingthebenefitplans||||
|5.1.2Shareenjoyedinothercomprehensiveincomenottobereclassifiedintoprofitandlossininvestedunitunderequitylaw||||
|5.2Othercomprehensiveincometobereclassifiedintoprofitandlosslater||||
|5.2.1Shareenjoyedinothercomprehensiveincometobereclassifiedintoprofitandlossininvestedunitunderequitylaw||||
|5.2.2Profitandlossfromchangesinfairvalueoffinancialassetsforsale||||
|5.2.3Profitandlossfromreclassificationofheld-to-maturityinvestmentintofairvalueoffinancialassetsforsale||||
|5.2.4Effectivepartofprofitandlossofcash-flowhedge||||
|5.2.5DifferenceintranslationofForeignCurrencyFinancialStatement||||
|5.2.6Other||||
|6.Totalcomprehensiveincome||690,199,888|59,438,701|
|7.Earningspershare||||
|(1)Basicearningspershare||1.01|0.09|
|(2)Dilutedearningspershare||1.01|0.09|

Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. Manager:JiangJianxun
2.5Consolidated statementof cashflow
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd. Unit:Yuan
||||
|-|-|-|
|Item|Sumofcurrentperiod|Sumofpriorperiod|
|1.Cashflowsfromoperatingactivities:|||
|Cashreceivedfromsalesofgoodsandrendingofservices|2,706,821,883|2,745,943,886|
|Netincreaseincustomerandinterbankdeposits|||
|Netincreaseinborrowingsfromcentralbank|||
|Netincreaseinborrowingsfromotherfinancialinstitutions|||
|Cash received from receiving insurance premium of originalinsurancecontract|||
|Netcashreceivedfromreinsurancebusiness|||
|Netincreaseinpolicyholderdepositsandinvestmentfunds|||
|Net increase after disposal of financial assets measured at the fairvalue and the variation of which is recorded into the current profitandloss|||
|Cashreceivedfromcollectinginterest,handlingfeesandcommission|||
|Netincreaseinborrowings|||
|Netincreaseinrepurchasementbusinessfunds|||
|Taxrefundreceived|13,866,472||
|Othercashreceivedrelatedtooperatingactivities|27,834,008|8,212,963|
|Subtotalofcashflowsofoperatingactivities|2,748,522,363|2,754,156,849|
|Cashpaidforgoodsandservices|635,982,569|377,725,712|
|Netincreaseincustomerloansandadvances|||
|Netincreaseindepositsincentralbankandinterbankdeposits|||
|Cashpaidtooriginalinsurancecontractpayments|||
|Cashpaidtointerest,handlingfeesandcommission|||
|Cashpaidtopolicybonus|||
|Cashpaidtoandonbehalfofemployees|230,296,149|205,574,897|
|Cashpaidfortaxesandexpenses|756,992,525|853,362,703|
|Othercashpaidrelatedtooperatingactivities|442,502,751|390,330,477|
|Sub-totalofcashoutflowsofoperatingactivities|2,065,773,994|1,826,993,789|
|Netcashflowfromoperatingactivities|682,748,369|927,163,060|
|2.Cashflowfrominvestingactivities:|||
|Cashreceivedfromreturnofinvestment|||
|Fixeddepositwiththetermofover3months|8,000,000|26,245,259|
|Cashreceivedfromobtaininginvestmentprofit|28,483|859,212|
|Cash received from disposal of fixed assets, intangible assets andotherlong-termassets|233,355|100|
|Netcashreceivedfromdisposalofbranchandotherbusinessunit|||
|Othercashreceivedrelatedtoinvestingactivities|||
|Subtotalofcashflowsofinvestmentactivities|8,261,838|27,104,571|
|Cash paid to acquire fixed assets, intangible assets and otherlong-termassets|398,151,685|452,285,573|
|Cashforinvestment|||
|Cashpaidtobuyfixeddepositwiththetermofover3months|7,007,000|7,000,000|
|Netincreaseinhypothecatedloan|||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Item|Sumofcurrentperiod|Sumofpriorperiod|
|Netcashpaidtoacquirebranchandotherbusinessunit|762,436||
|Othercashpaidrelatedtoinvestmentactivities|||
|Subtotalofcashoutflowsofinvestmentactivities|405,921,121|459,285,573|
|Netcashflowfrominvestingactivities|-397,659,283|-432,181,002|
|3.Cashflowfromfinancingactivities|||
|Cashreceivedfromacquiringinvestment|||
|Including: cash received from acquiring minority shareholdersinvestmentbybranch|||
|Cashreceivedfromacquiringloans|809,175,350||
|Cashreceivedfromissuingbonds|||
|Othercashreceivedrelatedtofinancingactivities|||
|Subtotalcashflowsoffinancingactivities|809,175,350||
|Cashpaidtopaydebts|512,516,014|15,562,400|
|Cashpaidtodistributedividend,profitorpayinterest|16,940,912|8,357,292|
|Including: dividend and profit paid to minority shareholders bybranch|||
|Othercashpaidrelatedtofinancingactivities|20,000,000||
|Subtotalofcashoutflowsoffinancingactivities|549,456,926|23,919,692|
|Netcashflowfromfinancingactivities|259,718,424|-23,919,692|
|4. Influences of exchange rate fluctuation on cash and cashequivalents|6,885,883|-508,117|
|5.NetIncreaseincashandcashequivalents|551,693,393|470,554,249|
|Plus: balance at the beginning of the period of cash and cashequivalents|1,092,241,661|960,472,274|
|6.Balanceattheendoftheperiodofcashandcashequivalents|1,643,935,054|1,431,026,523|

 Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:JiangJianxun
2.6Statementofcash flowofthe parentcompany
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd. Unit:Yuan
||||
|-|-|-|
|Item|Sumofcurrentperiod|Sumofpriorperiod|
|1.Cashflowsfromoperatingactivities:|||
|Cashreceivedfromsalesofgoodsandrendingofservices|595,186,103|373,810,768|
|Taxrefundreceived|||
|Othercashreceivedrelatedtooperatingactivities|239,938|22,816,369|
|Subtotalofcashflowsofoperatingactivities|595,426,041|396,627,137|
|Cashpaidforgoodsandservices|324,226,720|197,172,825|
|Cashpaidtoandonbehalfofemployees|79,790,054|80,634,457|
|Cashpaidfortaxesandexpenses|88,941,454|122,745,455|
|Othercashpaidrelatedtooperatingactivities|846,691,535|22,075,594|
|Sub-totalofcashoutflowsofoperatingactivities|1,339,649,763|422,628,331|
|Netcashflowfromoperatingactivities|-744,223,722|-26,001,194|
|2.Cashflowfrominvestingactivities:|||
|Cashreceivedfromreturnofinvestment||350,000|
|Fixeddepositwiththetermofover3months|8,000,000|26,245,259|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Item|Sumofcurrentperiod|Sumofpriorperiod|
|Cashreceivedfromobtaininginvestmentprofit|1,164,454,077|47,629,498|
|Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets|231,240||
|Netcashreceivedfromdisposalofbranchandotherbusinessunit|||
|Othercashreceivedrelatedtoinvestingactivities|||
|Subtotalofcashflowsofinvestmentactivities|1,172,685,317|74,224,757|
|Cash paid to acquire fixed assets, intangible assets and otherlong-termassets|15,892,483|20,197,080|
|Cashforinvestment|||
|Cashpaidtobuyfixeddepositwiththetermofover3months|7,007,000|7,000,000|
|Netcashpaidtoacquirebranchandotherbusinessunit|||
|Othercashpaidrelatedtoinvestmentactivities|||
|Subtotalofcashoutflowsofinvestmentactivities|22,899,483|27,197,080|
|Netcashflowfrominvestingactivities|1,149,785,834|47,027,677|
|3.Cashflowfromfinancingactivities|||
|Cashreceivedfromacquiringinvestment|||
|Cashreceivedfromacquiringloans|400,000,000||
|Cashreceivedfromissuingbonds|||
|Othercashreceivedrelatedtofinancingactivities|||
|Subtotalcashflowsoffinancingactivities|400,000,000||
|Cashpaidtopaydebts|420,114,492|15,562,400|
|Cashpaidtodistributedividend,profitorpayinterest|13,936,049|8,357,292|
|Othercashpaidrelatedtofinancingactivities|||
|Subtotalofcashoutflowsoffinancingactivities|434,050,541|23,919,692|
|Netcashflowfromfinancingactivities|-34,050,541|-23,919,692|
|4. Influences of exchange rate fluctuation on cash and cashequivalents|||
|5.NetIncreaseincashandcashequivalents|371,511,571|-2,893,209|
|Plus: balance at the beginning of the period of cash and cashequivalents|143,798,080|333,245,466|
|6.Balanceattheendoftheperiodofcashandcashequivalents|515,309,651|330,352,257|

 Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:JiangJianxun
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 2.7Consolidatedowner’s equitychanginglist
Unit:Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Thisperiod|||||||||||||
||Owners’equityoftheparentcompany|||||||||||Minorityshareholders’equity|Totalowners’equity|
||Capitalstock|Otherequityinstruments|||Capitalreserves|Minus:Treasurystock|Othercomprehensiveincome|Specialreserves|Surplusreserves|Generalriskpreparation|Undistributedprofits|||
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||||
|1. Balance at the end of lastyear|685,464,000||||565,955,441||-10,442,512||342,732,000||5,980,390,074|192,459,023|7,756,558,026|
|Plus: Accounting policieschanging||||||||||||||
|Previouserrorcorrection||||||||||||||
|Business combination undercommoncontrol||||||||||||||
|Other||||||||||||||
|2.Balanceat thebeginningofthisyear|685,464,000||||565,955,441||-10,442,512||342,732,000||5,980,390,074|192,459,023|7,756,558,026|
|3. Increased or decreasedamountinthisperiod(reducingamountislistedwith"-")|||||||6,249,919||||695,021,847|2,138,610|703,410,376|
|3.1 Total comprehensiveincome|||||||6,249,919||||695,021,847|1,099,848|702,371,614|
|3.2 Owners' invested andreducedcapital||||||||||||1,038,762|1,038,762|
|3.2.1 Shareholders’ investedcommonstock||||||||||||||
|3.2.2 Other equity instrumentholders’investedcapital||||||||||||||
|3.2.3 Amount of shares paidandreckonedinowners'equity||||||||||||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|3.2.4Other||||||1,038,762|1,038,762|
|3.3Profitdistribution||||||||
|3.3.1Accruedsurplusreserves||||||||
|3.3.2 Accrued general riskpreparation||||||||
|3.3.3Distributiontoowners(orshareholders)||||||||
|3.3.4Other||||||||
|3.4Internaltransferofowners'equity||||||||
|3.4.1 Capital reservestransferred and increasedcapital(orcapitalstock)||||||||
|3.4.2 Surplus reservestransferred and increasedcapital(orcapitalstock)||||||||
|3.4.3Surplusreservescoveringdeficit||||||||
|3.4.4Other||||||||
|3.5Specialreserves||||||||
|3.5.1Withdrawalinthisperiod||||||||
|3.5.2Usageinthisperiod||||||||
|3.6Other||||||||
|4. Balance at the end of thisperiod|685,464,000|565,955,441|-4,192,593|342,732,000|6,675,411,921|194,597,633|8,459,968,402|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. Unit:Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Priorperiod|||||||||||||
||Owners’equityoftheparentcompany|||||||||||Minorityshareholders’equity|Totalowners’equity|
||Capitalstock|Otherequityinstruments|||Capitalreserves|Minus:Treasurystock|Othercomprehensiveincome|Specialreserves|Surplusreserves|Generalriskpreparation|Undistributedprofits|||
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||||
|1.Balanceattheendoflastyear|685,464,000||||563,139,042||-2,803,271||342,732,000||5,251,920,374|162,740,779|7,003,192,924|
|Plus: Accounting policieschanging||||||||||||||
|Previouserrorcorrection||||||||||||||
|Business combination undercommoncontrol||||||||||||||
|Other||||||||||||||
|2. Balance at the beginning ofthisyear|685,464,000||||563,139,042||-2,803,271||342,732,000||5,251,920,374|162,740,779|7,003,192,924|
|3. Increased or decreasedamountinthisperiod(reducingamountislistedwith"-")|||||2,816,399||-7,639,241||||728,469,700|29,718,244|753,365,102|
|3.1Totalcomprehensiveincome|||||||-7,639,241||||1,030,073,860|99,235|1,022,533,854|
|3.2 Owners' invested andreducedcapital|||||2,816,399|||||||29,619,009|32,435,408|
|3.2.1 Shareholders’ investedcommonstock||||||||||||32,585,408|32,585,408|
|3.2.2 Other equity instrumentholders’investedcapital||||||||||||||
|3.2.3Amountofsharespaidandreckonedinowners'equity||||||||||||||
|3.2.4Other|||||2,816,399|||||||-2,966,399|-150,000|
|3.3Profitdistribution|||||||||||-301,604,160||-301,604,160|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|3.3.1Drewsurplusreserves||||||||
|3.3.2 Drew general riskpreparation||||||||
|3.3.3Distributiontoowners(orshareholders)|||||-301,604,160||-301,604,160|
|3.3.4Other||||||||
|3.4 Internal transfer of owners'equity||||||||
|3.4.1 Capital reservestransferredandincreasedcapital(orcapitalstock)||||||||
|3.4.2 Surplus reservestransferredandincreasedcapital(orcapitalstock)||||||||
|3.4.3 Surplus reserves coveringdeficit||||||||
|3.4.4Other||||||||
|3.5Specialreserves||||||||
|3.5.1Accrualinthisperiod||||||||
|3.5.2Usageinthisperiod||||||||
|3.6Other||||||||
|4. Balance at the end of thisperiod|685,464,000|565,955,441|-10,442,512|342,732,000|5,980,390,074|192,459,023|7,756,558,026|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.2.8Owner’s equity changing listoftheparent company
Unit:Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Thisperiod|||||||||||
||Capitalstock|Otherequityinstruments|||Capitalreserves|Minus:Treasurystock|Othercomprehensiveincome|Specialreserves|Surplusreserves|Undistributedprofits|Totalowners’equity|
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||
|1.Balanceattheendoflastyear|685,464,000||||557,222,454||||342,732,000|5,872,392,075|7,457,810,529|
|Plus:Accountingpolicieschanging||||||||||||
|Previouserrorcorrection||||||||||||
|Other||||||||||||
|2.Balanceatthebeginningofthisyear|685,464,000||||557,222,454||||342,732,000|5,872,392,075|7,457,810,529|
|3. Increased or decreased amount in thisperiod(reducingamountislistedwith"-")||||||||||690,199,888|690,199,888|
|3.1Totalcomprehensiveincome||||||||||690,199,888|690,199,888|
|3.2Owners'investedandreducedcapital||||||||||||
|3.2.1Shareholders’investedcommonstock||||||||||||
|3.2.2 Other equity instrument holder’investedcapital||||||||||||
|3.2.3Amountofsharespaidandreckonedinowners'equity||||||||||||
|3.2.4Other||||||||||||
|3.3Profitdistribution||||||||||||
|3.3.1Drewsurplusreserves||||||||||||
|3.3.2 Distribution to owners (orshareholders)||||||||||||
|3.3.3Other||||||||||||
|3.4Internaltransferofowners'equity||||||||||||
|3.4.1 Capital reserves transferred and||||||||||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||
|-|-|-|-|-|-|
|increasedcapital(orcapitalstock)||||||
|3.4.2 Surplus reserves transferred andincreasedcapital(orcapitalstock)||||||
|3.4.3Surplusreservescoveringdeficit||||||
|3.4.4Other||||||
|3.5Specialreserves||||||
|3.5.1Accrualinthisperiod||||||
|3.5.2Usageinthisperiod||||||
|3.6Other||||||
|4.Balanceattheendofthisperiod|685,464,000|557,222,454|342,732,000|6,562,591,963|8,148,010,417|

 Unit:Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Priorperiod|||||||||||
||Capitalstock|Otherequityinstruments|||Capitalreserves|Minus:Treasurystock|Othercomprehensiveincome|Specialreserves|Surplusreserves|Undistributedprofits|Totalowners’equity|
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||
|1.Balanceattheendoflastyear|685,464,000||||557,222,454||||342,732,000|4,620,476,137|6,205,894,591|
|Plus:Accountingpolicieschanging||||||||||||
|Previouserrorcorrection||||||||||||
|Other||||||||||||
|2.Balanceatthebeginningofthisyear|685,464,000||||557,222,454||||342,732,000|4,620,476,137|6,205,894,591|
|3. Increased or decreased amount in thisperiod(reducingamountislistedwith"-")||||||||||1,251,915,938|1,251,915,938|
|3.1Totalcomprehensiveincome||||||||||1,553,520,098|1,553,520,098|
|3.2Owners'investedandreducedcapital||||||||||||
|3.2.1Shareholders’investedcommonstock||||||||||||
|3.2.2Otherequityinstrumentholder’investedcapital||||||||||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||
|-|-|-|-|-|-|
|3.2.3Amountofsharespaidandreckonedinowners'equity||||||
|3.2.4Other||||||
|3.3Profitdistribution||||-301,604,160|-301,604,160|
|3.3.1Drewsurplusreserves||||||
|3.3.2Distributiontoowners(orshareholders)||||-301,604,160|-301,604,160|
|3.3.3Other||||||
|3.4Internaltransferofowners'equity||||||
|3.4.1 Capital reserves transferred andincreasedcapital(orcapitalstock)||||||
|3.4.2 Surplus reserves transferred andincreasedcapital(orcapitalstock)||||||
|3.4.3Surplusreservescoveringdeficit||||||
|3.4.4Other||||||
|3.5Specialreserves||||||
|3.5.1Accrualinthisperiod||||||
|3.5.2Usageinthisperiod||||||
|3.6Other||||||
|4.Balanceattheendofthisperiod|685,464,000|557,222,454|342,732,000|5,872,392,075|7,457,810,529|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 3. Basic information of this company
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company”, the “Joint-stock Company” or “the Group”)wasincorporatedasajointstocklimitedcompanyinaccordancewiththeCompanyLawof thePeople’s Republic of China (the “PRC”) in the merger and reorganization carried out byYantai Changyu Group Co., Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to wine business. The Company and its subsidiary companies (hereinafter uniformly referred to as the “Group”) are principally engaged in the production and sales of wine, brandy and champagne. The registered address of the Company isYantai City,Shandong Province, and the office address of the headquartersis56DamaRoad,ZhifuDistrict,YantaiCity,ShandongProvince.
As at June 30, 2016, the Company issued 685,464,000 shares accumulatively. Refer to Note 7.31 forthedetails.
The parent company of the Group is Changyu Group Company incorporated in China, which was ultimately actually controlled by Yantai Guofeng Investment Holding Co., Ltd., ILLVA SaronnoHoldingSpA,InternationalFinanceCorporationandYantaiYuhuaInvestment&DevelopmentCo., Ltd.
The subsidiaries and the consolidated financial statement of the Company were approved by the BoardofDirectorsonAugust25,2016.
ThescopeoftheconsolidatedfinancialstatementinthisyearcanbeseeninNote9“Equityinother entities”.Thescopechangesof theconsolidatedfinancialstatementinthisyear canbeseeninNote 8“Changesoftheconsolidatedscope”.
4. Basis of preparation of financial statement
4.1Basisofpreparation
The Group implements the Accounting Standards for Business Enterprises (including the new and revised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant regulations thereof. In addition, the Group also discloses relevant financial information in accordance with Information Disclosure and Preparation Rules for Enterprises Publically Issuing SecuritiesNo.15----GeneralRulesforFinancialStatement(Revisedin2014).
Note-accountingbasisandpricingprinciple
The note-accounting basis of financial accounting adopted by the Group is accrual system and the measurement basis adopted by the Group in preparing its financial statement is historical cost. Subsequently, if the assets are impaired, impairment provisions are made in accordance with relevantaccountingstandards.
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 paidforanticipatedliabilitiesinthedailyactivities.
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 financialstatementisrecognizedonthisbasis.
The fair value measurement is dividedinto three levels based on the observable degree of the input
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. fairvalueandtheimportanceofthisinputvalueonthewholefairvaluemeasurement:
*The input value of the first level is the unadjusted price of the same assets or liabilities which can beacquiredinanactivemarketonthemeasurementdate.
*The input value of the second level is the directly or indirectly observable input value of relevant assetsorliabilitiesexceptthatofthefirstlevel.
*Theinputvalueofthethirdlevelistheunobservableinputvalueofrelevantassetsorliabilities. 4.2Continuousoperation
TheGrouphasappraisedtheabilityofcontinuousoperationfor12monthsfromJune30,2016,and no issues and situations causing major doubts to this ability are found. Therefore, this financial statementispreparedonthebasisofthecontinuousoperationassumption.
5. Main accounting policies and accounting estimates
5.1Statementon compliancewith ASBE
This financial statement fulfills the requirement of ASBE and gives a true and integrated view of thefinancialstatusandtheconsolidatedfinancialstatusasatJune30,2016,andtheoperatingresult, the consolidated operating result, the cash flow and the consolidated cash flow of the Company fromJanuarytoJune2016.
5.2Accounting period
TheaccountingperiodoftheGroupisfromJanuary1toDecember31.
5.3Operating cycle
The operatingcyclerefers totheperiodfromtheenterprisepurchases theassetsusedforprocessing tothecashorcashequivalentisrealized.TheoperatingcycleoftheCompanyis12months.
5.4Reporting currency
Since Renminbi (RMB) is the currency of the main economic environment in which the Company and the domestic subsidiary companies thereof are situated, the Company and the subsidiary companies thereof adopt RMB as the reporting currency. The overseas subsidiary companies thereof determine Euro as the reporting currency according to the main economic environment in whichtheyaresituated.ThecurrencyinthisfinancialstatementpreparedbytheGroupisRMB. 5.5 Accounting treatment method for business combination under common control and non-common control
5.5.1Businesscombination andgoodwillunder non-common control
A business combination under non-common control is a business combination in which all of the combiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthe combination.
Thecombinationcostshallbethefairvalueoftheassetspaid,theliabilitiesincurredorassumedor 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 profitandlosswhentheyoccur.
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 dateaccordingtothefairvaluethereof.
If the combination cost is larger than the fair value of the identifiable net assets obtained from the acquire during the combination, the difference shall be recognized as business goodwill and
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. initiallymeasuredaccordingtothecostthereof.
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.
5.6Compiling methods ofconsolidated financialstatement
The consolidation scope of the consolidated financial statement is determined on the basis of control.Control meansthat the investor holds the powerinthe investor,obtainsvariable 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 willcarryoutreappraisal.
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 whentheGrouplossesthepowertocontrolthissubsidiarycompany.
As for any subsidiary company disposed by the Group, the business result and the cash flow thereof before the disposal date (date of losingcontrol power) shall have beenproperlyincluded in theconsolidatedincomestatementandtheconsolidatedcashflowstatement.
As foranysubsidiarycompanyobtainedina business combinationundernon-common control,the businessresultandthecashflowthereofsincetheacquisitiondate(dateofobtainingcontrolpower) shall have been properly included in the consolidated income statement and the consolidated cash flowstatement.
The principal accountingpoliciesand accountingperiodadoptedbythe subsidiarycompanies shall be determined in accordance with the accounting policies and accounting period uniformly regulatedbytheCompany.
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 thetimeofcombination.
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”oftheowner’sequityinthebalancesheet.Thesharesinthecurrentprofitandlossofthesubsidiary companies, whichbelongto the minorityequity,shall be listed under the item of “minorityequity” ofthenetprofitintheconsolidatedincomestatement.
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 differenceshallbestillcreditedagainsttheminorityequity.
5.7Recognition standardsofcash andcash equivalents
Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer to short-termhighlyliquidinvestmentswhichare readilyconvertible intoknown amount of cashwith aninsignificantriskofchangesinvalue.
5.8Foreign currency transaction and foreign currency statement translation
5.8.1Foreigncurrency transaction
At the time of initial recognition of a foreign currency transaction, the amount of the foreign currency shall be translated into the amount of the reporting currency at the spot exchange rate on thetransactiondate.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. The monetary items of the foreign currency transaction shall be translated into RMB at the spot change rate on the balance sheet date. The currency translation difference generated by the difference between the spot change rate on the balance sheet date and the spot change rate at the initial recognition or on the previous balance sheet date shall be included in the current profit and loss, except:① the currency translation difference of the dedicated foreign currency loan that meets thecapitalization conditionshall be included inthecost of assets as capitalizationduring the capitalization period;② the currency translation difference of the arbitrage tool to avoid foreign exchange risk shall be treated according to the hedge accounting method;③ the currency translation difference of the available-for-sale monetary items generated by the book value other than the amortized cost shall be recognized as other comprehensive income and included in other comprehensiveincome.
The amount of the non-monetary items of the foreign currency transaction measured by historical cost shall be still translated into the amount in the reporting currency at the spot exchange rate on the transaction date. The non-monetary items of the foreign currency transaction measured by the fair value shall be translated at the spot exchange rate on the fair value date, and the difference between the amount in the reporting currency and the amount in original reporting currency shall betreatedasthechangeofthefairvalue(includingexchange ratemovement)andshallbeincluded inthecurrentprofitandlossorrecognizedasothercomprehensiveincome.
5.8.2Translationofforeign 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 "undistributedprofits",shallbe translatedatthe spotexchange rateatthe time whentheyoccur;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 theshareholders’ equity items shall be recognized as other comprehensiveincomeandincludedintheshareholder'sequity.
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”inthecashflowstatement.
The balance at the beginning of the year and the actual amount of the previous year shall be listed astheamounttranslatedaccordingtothefinancialstatementofthepreviousyear.
5.9Financial instruments
Whenbecominga partytoa contractoffinancialinstruments,theGroupshallrecognize a financial asset or financial liability. The financial assets and financial liabilities shall be measured at their fair value at the time of initial recognition. For other categories of financial assets and financial liabilities, relevant transaction expenses thereof shall be included in the initially recognized amount.
5.9.1Effectiveinterest method
The effective interest method refers to the method by which the amortized cost and the interest income or expenditure of different installments are calculated in light of the effective interest rates of the financial assets or financial liabilities (including a group of financial assets or financial liabilities). The effective interest rate refers to the interest rate adopted to cash the future cash flow of a financial asset or financial liability within the predicted term of existence or within a shorter
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. applicabletermintothecurrentbookvalueofthefinancialassetorfinancialliability.
When the effective interest rate is calculated, the Group predicts the future cash flow (taking no account of the future credit loss) on the basis of considering all the contractual provisions concerning the financial assets or financial liabilities, as well as all kinds of charges, transaction expenses, discounts, premiums, etc. which are paid, charged, and included in the effective interest ratebetweenthecontractingpartiesofthefinancialassetsorliabilities.
5.9.2Classification,recognition andmeasurementof financialassets
Financial assets are classified into the following categories when they are initially recognized: the financial assets which are measured at the fair value and the variation of which is included in the current profit and loss, the investments which will be held to their maturity, loans, accounts receivable and available-for-sale financial assets. The financial assets purchased and sold through common modes shall be recognized and terminated from recognition according to the accounting on the transaction date. The financial assets held by the Group are loans, accounts receivable and available-for-salefinancialassets.
Loansandaccountsreceivable
Loans and accounts receivable refer to the non-derivative financial assets for which there is no quoted price in an active market and of which the repo amount is fixed or determinable. The financialassetsclassifiedbytheGroupintoloansandaccountsreceivableincludemonetarycapital, bills receivable, accounts receivable, interest receivable, dividends receivable and other receivables.
The loans and accounts receivable shall be subsequently measured at amortized cost by adopting the effective interest rate method. The profits or losses that occur when such loans and accounts receivable are terminated from recognition, impaired or amortized shall be included in the current profitandloss.
Available-for-salefinancialassets
Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale at the time of initial recognition and the financial assets other than those measured at their fair value and the variation of which is included in the current profit and loss, loans,accountsreceivableandtheinvestmentswhichwillbeheldtotheirmaturity.
Theequityinstrumentinvestment withoutquotedmarket priceinanactive market whosefairvalue cannotbereliablymeasuredshallbemeasuredbycost.
5.9.3Impairmentoffinancial assets
On each balance sheet date, the Group checks the bookvalue of the financial assets. If there is any objectiveevidenceindicatingthatafinancialassetisimpaired,theimpairmentprovisionisaccrued. Objective evidence indicating the impairment of financial assets refers to those occurring after the initial recognition, have effect on the estimated future cash flow of the financial assets, and can be measuredreliably.
The objective evidence indicating the impairment of the financial assets includes the following observablematters:
1 Aseriousfinancialdifficultyoccurstotheissuerorthedebtor;
2 The debtor breaches any of the contractual stipulations, such as, failure to pay or delay of thepaymentofinterestorprincipal;
3 The Group makes any concession due to economic, legal factors or other factors to the
debtorwhichisinfinancialdifficulties;
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 4 Thedebtorwillprobablybecomebankruptorcarryoutotherfinancialreorganizations; 5 The financial assets can no longer continue to be traded in an active market due to serious financialdifficultiesoftheissuer;
6 It is impossible to identify whether the cash flow of a certain asset within a certain group of financial assets has decreased or not. But after making an overall appraisal according to thepublicdataavailable,itisfoundthattheestimatedfuturecashflowofthesaidgroupof financial assets has indeed decreased since it was initially recognized and such decrease canbemeasured,including:
* Thepaymentabilityofthedebtorofthesaidgroupoffinancialassetsworsensgradually;* The country or economic region where the debtor is situated has the conditions that may causethefinancialassetstobeunpaid.
7 Aseriousunfavourablechangeoccurstotheoperatingtechnology,market,economic
environment,legalenvironmentoftheissueroftheequityinstrumentsthatcausesthe
investoroftheequityinstrumentscan’trecovertheinvestmentcosts;
8 Thefairvalueoftheequityinstrumentinvestmenthasseriousorpermanentdecline;and 9 Otherobjectiveevidenceshowingthedepreciationofthefinancialassets.
* Impairment offinancial assets measured byamortized cost
Whereafinancialassetmeasuredat amortizedcostisimpaired, thebookvalue ofthesaidfinancial asset shall be written down to the current value of the predicted future cash flow determined according to the capitalization of original effective exchange rate (excluding the loss of future credits not yet occurred), and the amount as written down shall be recognized as loss of the impairment of the asset and shall be included into the current profit and loss. If there is any objective evidence proving that the value of the said financial asset has been restored, and it is objectively related to the events that occur after such loss is recognized, the impairment losses originally recognized shall be reversed. However, the reversed book value shall not be any more than the amortized costs of the said financial asset on the day of reverse under the assumption that noprovisionismadefortheimpairment.
An impairment test shall be made by the Group independently on the individually significant financial assets; with regard to not individually significant financial assets, an independent impairment test may be carried out, or they may be included in a combination of financial assets with similar credit risk characteristics so as to carry out an impairment-related test. Where, upon independent test, the financial asset (including the individually significant financial assets and not individually significant financial assets) has not been impaired, it shall be included in a combination of financial assets with similar credit risk characteristics so as to conduct another impairment test. Assets that are individually assessed for impairment and for which an impairment lossisorcontinues toberecognizedshallnotbeincludedinthecombinationofthe financialassets withsimilarcreditriskcharacteristicsforimpairmenttest.
* Impairment ofavailable-for-sale financial assets measured bycost
Whentheequityinstrumentinvestmentwithoutquotedmarketpriceinanactivemarketandthe fairvalueofwhichcannotbereliablymeasuredisimpaired,thebookvalueisdecreasedtothe currentvalueconfirmedbythediscountedfuturecashflowaccordingtothecurrentmarketreturn ofthesimilarfinancialassets.Thedecreasedamountisrecognizedasimpairmentlossandincludedinthecurrentprofitandloss.Theimpairmentlossofthiskindoffinancialassetscan’tbe
transferredbackuponconfirmation.
5.9.4Transferof financial assets
Where a financial asset satisfies any of the following conditions, it shall be terminated from
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. recognition: (1) where the contractual rights for collecting the cash flow of the said financial asset are terminated; (2) where the said financial asset has been transferred and all the risks and rewards of the financial asset have been substantially transferred to the receiver; (3) where the financial asset has been transferred, although the Group does not transfer or retain almost all the risks and rewardsofthefinancialasset,theGroupstillwaivesthecontroloverthefinancialasset.
Where the overall transfer of the financial asset satisfies the derecognition conditions, the difference between the book value of the transferred financial asset as well as the consideration received due to such transfer and the summation of the cumulative amount of the fair value of the asset that is originally included in other comprehensive income shall be included in the current profitandloss.
5.9.5Classification,recognition andmeasurementof financialliabilities
The Group classifies the financial instruments or the components as financial liabilities or equity instruments at the time of initial recognition according to the contract terms of the issued financial instruments and the reflected economic essence rather than only the legal form, considering the definitionoffinancialliabilitiesandequityinstruments.
The financial liabilities are classified as the financial liabilities and other financial liabilities measured by fair value and the variation of which is included in the current profit and loss at the time of initial recognition. The financial liabilities of the Group are other financial liabilities, including short-term loans, notes payable, accounts payable, interest payable, other payables and long-termloans.
Otherfinancialliabilities
Other financial liabilities are subsequently measured at amortized cost by adopting effective interest rate method, wherein the profits or losses that arise when such financial liabilities are terminatedfromrecognitionoramortizedshallbeincludedinthecurrentprofitandloss.
5.9.6Terminated recognitionoffinancial liabilities
Whenthe prevailing obligations of a financial liability are relieved inall or in part, the recognition of the financial liability shall be terminated in all or in part. Where the Group (debtor) enters into an agreement with a creditor so as to substitute the existing financial liability by way of any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different from that regarding the existing financial liability, the recognition of the existingfinancial liability shall be terminated, and at the same time the new financial liabilityshall berecognized.
Where the recognition of a financial liability is totally or partially terminated, the difference between the book value of the part which has been terminated from recognition and the considerationwhichhasbeenpaid(including the non-cashassetsit has transferredout andthe new financialliabilitiesithasassumed)shallbeincludedintothecurrentprofitandloss.
5.9.7Offsetoffinancialassets andfinancialliabilities
Whenthe Group has the legal right to offset the recognized financial assets and financial liabilities and this right can be implemented at present, and when the Group plans to use net settlement or liquidate the financial assets and pay off the financial liabilities, the amount after the financial assets offset the financial liabilities is listed in the balance sheet. Besides, the financial assets and thefinancialliabilitiesarerespectivelylistedinthebalancesheetwithoutoffset.
5.9.8Equity instruments
The equity instruments mean the contracts by which to hold the residual equity in the assets of the Group after deducting all the liabilities. The issuing (including refinancing), counter purchase, sale or cancellation of the equity instruments by the Group shall be handled as changes of the equity.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.TheGroupdoesn’trecognizeanychangetothefairvalueoftheequityinstruments.Thetransaction expensesrelatedtotheequitytransactionshallbedeductedfromtheequity.
The distribution related to the equity instrument holder by the Group shall be considered as profit distribution, and the issued share dividendsdon’t affect the total amount of theshareholders’ equity.
5.10Accounts receivable
5.10.1Badaccountprovisionof individually significantaccounts receivable
|||
|-|-|
|Judgment reference or amount standard for individuallysignificantaccounts|The accounts receivable with the amount above RMB3,000,000 Yuan shall be recognized by the Group as theindividuallysignificantaccountsreceivable.|
|Accruingmethodforindividuallysignificantaccountsaccruedforbadaccountprovisionindividually|An impairment test shall be made independently by theGroup on the individually significant financial assets.Where, upon independent test, the financial asset has notbeen impaired, it shall be included in a combination offinancial assets with similar risk characteristics so as toconduct another impairment test. The accounts receivablethat are independently assessed for impairment and forwhichanimpairmentlossisorcontinuestoberecognizedshall not be included in the combination of accountsreceivable with similar credit risk characteristics forimpairmenttest.|

5.10.2 Individually insignificant accounts receivable accrued for bad account provision individually
|||
|-|-|
|Reasons for accruing for bad accountprovisionindividually|If there is objective evidence that the Group can’t call back the accountsaccording to original articles, the individually insignificant accounts receivablecanbeaccruedforbadaccountprovisionindividually.|
|Methods for accruing bad accountprovision|The impairment losses are recognized according to the difference between thepresentvalueoffuturecash flowandthebookvalue, andimpairment provisionisaccrued.|

5.11Inventories
5.11.1Classificationof inventories
Inventories of the Group comprise raw materials, goods in process and commodity stocks. The inventories are initially measured by cost. The inventory cost consists of purchase cost, processing costandotherexpenditurestomakeinventoriesreachthecurrentsiteandstate.
5.11.2Pricing methods forsending outinventories
Weighted average method is used to determine the actual cost for sending out inventories when sendingthemout.
TheagriculturalproductsaftertheharvestarehandledinaccordancewiththeASBE1-Inventories. 5.11.3Recognition reference of thenetrealizable valueof inventories
Inventories are stated at the lower of cost and net realizable value on the balance sheet date. If the net realizable value is lower than the cost of inventories, the provision for the loss on decline in value of inventories are made. The net realizable value refers to the amount: the estimated sale price of inventories deducting the estimated cost to happen till completion, the estimated selling expense and relevant taxes, in daily activities. Based on the acquired concrete evidence, the purpose for holding inventories and the impact of matters after balance sheet date shall be also consideredduringrecognitionofthenetrealizablevalueofinventories.
The inventories are accrued inventory depreciation provision according to the difference of single
inventoryitemanditsnetrealizablevalue.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. After accruing inventory depreciation provision, if the previous influence factors writing down inventoriesvalue disappearresultinginthenetrealizable valueof theinventoriesbeinghigher than their book value, it shall be reversed from the originally accrued inventory depreciation provision amountandthereversedamountshallbeincludedinthecurrentprofitandloss.
5.11.4Inventory system fortheinventories
Inventorysystem:Perpetualinventorysystem
5.11.5Amortizationmethod oflow-priced andeasily-wornarticles and packages
Amortization method of packages and low-priced and easily-worn articles: One-off amortization method
5.12Long-term equityinvestments
5.12.1Judgmentstandard ofcontrol, common control andsignificantimpact
Control means that the investor holds the power in the investor, obtains variable returns by participating in relevant activities of the invested party and has the ability to affect the amount of the returns by using the power on the invested party.Common control means a joint control over a certain arrangement according to relevant agreements and relevant activities of this arrangement must be decidedupon unanimous consent of the participants sharing the control power.Significant impact refers tothe right toparticipate in decision-making of theinvestor’s financial andoperating policies but not controlling or commonly controlling the formulation of these policies with other parties.Whendeterminingwhethertocontrolorexertsignificantinfluenceontheinvestedunit,the potential voting power factors such as the current convertible company bonds and the current executable equity warrants held by the investor and other parties in the invested unit have been considered.
5.12.2Recognition ofinitialinvestment cost
For long-term equity investments acquired from business combination under non-common control, the combination cost is regarded as the initial investment cost of the long-term equity investments ontheacquisitiondate.
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 currentprofitandlosswhentheyoccur..
For long-term equity investments other than those formed by business combination, initial measurementshallbecarriedoutaccordingtothecost.
5.12.3Subsequentmeasurement andrecognitionof lossandprofit
Long-termequityinvestmentsbycostmethod
Long-term equity investments in the subsidiary companies are measured on cost method basis in the corporate financial statement. Subsidiary companies refer to the invested entities by which the Grouphascontrol.
When cost method is adopted, the long-term equity investments are measured at the initial investment cost. In case of additional or recovered investment, the cost of the long-term equity investments shall be adjusted accordingly. The current investment income shall be recognized accordingtothecashdividendsorprofitsdeclaredtoissuebytheinvestedunit.
5.12.4Disposaloflong-term equity investments
When the long-term equity investments are disposed, the difference between the book value and theactuallyacquiredpriceisincludedinthecurrentprofitandloss.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 5.13Fixed assets
5.13.1Recognition conditions
Fixed assets refer to the tangible assets held for producing goods, rendering services, leasing or operation management, with service life exceeding one accounting year. Fixed assets can only be confirmed that the economic benefits related to the fixed assets are likely to flow into the Group, and the cost of the fixed assets can be measured reliably. Initial measurement for fixed assets shall be carried out according to the cost. For the subsequent expenses related to the fixed asset, if the economic benefits related to the fixed asset are likely to flow into the Group and the cost thereby can be reliably measured, the subsequent expenses are included in fixed asset cost and the book valueofthesubstitutedpartshallbeterminated.Othersubsequentexpensesshallbeincludedinthe currentprofitandloss.
5.13.2Depreciationmethods
Depreciation is calculated by the straight-line depreciation within the service life from the month following having been put into operation. The estimated service life, residual value and annual depreciationrateareasfollows:
||||||
|-|-|-|-|-|
|Classification|Depreciationmethod|Depreciationlife|Residualvaluerate|Annualdepreciationrate|
|Housesandbuildings|Straight-linedepreciation|20-40years|0-5%|2.4%-5.0%|
|Machineryequipment|Straight-linedepreciation|5-20years|0-5%|4.8%-20.0%|
|Transportationtools|Straight-linedepreciation|4-12years|0-5%|7.9%-25.0%|

Theestimatedresidualvalue referstotheamountthattheGroupobtainsfromdisposaloftheassets atpresentafterdeductingthepredicteddispositionexpensesatanestimatedstateontheassumption thatthepredictedservicelifeofthefixedassetshasexpired.
5.13.3Other
When the fixed assets are under disposal state or cannot generate any economic benefits through use or disposal as expected, the fixed assets shall be derecognized. The selling, transfer, scrapping or damage disposal income shall be included inthe current profit and loss after deducting the book valueandrelevanttaxes.
The Groupreviews the service life,expected netresidual value,andthe depreciationmethodof the fixed assets at least at the end of each year, andin case of anychange, the change will be disposed asaccountingestimatechange.
5.14Construction inprogress
Construction in progress is measured by actual costs, and the actual costs include all costs of the engineering during the period of construction, capitalized borrowing costs before the engineering reaches the planned serviceable condition and other related costs. The construction in progress is not depreciated. The construction in progress is transferred to fixed assets after reaching the plannedserviceablecondition.
5.15Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized after expenditure to acquire happens, borrowing costs happen, acquisition, construction or production essential for making the assets ready for their intended use or sales. Capitalization of borrowing costs shall cease when all the activities necessary to prepare
the qualifying asset for its intended use of sale are substantially complete. If the acquisition,
construction or production of a qualifying asset is abnormally interrupted, and the interruption
period exceeds three months, the capitalization of borrowing costs shall be temporarily ceased,
until the construction or production resumes. Other borrowing costs are recognized as expenses
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. whenoccur.
5.16Biological assets
ThebiologicalassetsoftheGroupareproductivebiologicalassets.
Productive biological assets refer to the biological assets held for the purposes of producing agricultural products, rendering services or leasing, etc. The productive biological assets of the Group are vines that produce grapes. Initial measurement for the productive biological assets is carried out according to the cost. For the occurred cost of the self-breeding productive biological asset before achieving the intended production and operation purposes can be directly attributable tothenecessaryexpensesoftheasset,includingtheborrowingcostconformingtocapitalization. The productive biological assets are not accrued depreciation until reaching the intended productionandoperationpurposes. After reaching the intendedproductionandoperationpurposes, 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 differentproductivebiologicalassetsareasfollows:
Categoryofassets Servicelife Estimatedresidualvaluerate(%) Annualdepreciationrate Vines 20years 5%
The service life of the productive biological assets of the Group and the estimated residual value areconfirmedbythenormalservicelifecycleofthebiologicalassets.
The Groupreviews the service life,expected netresidual value,andthe depreciationmethodof the productive biological assets at least at the end of each year. In case of any change, the change will bedisposedasaccountingestimatechange.
At the time of sale, loss, death, damage or destroy of a productive biological asset, the difference after deducting the book value and relevant taxes from the disposal income are included in the currentprofitandloss.
5.17Intangibleassets
5.17.1Pricing method, service lifeandimpairment test
Intangibleassetsincludelanduserightandsoftware,etc.
Initial measurement for intangible assets is carried out according to the cost. For the intangible assets with finite lives, since they are available, the amount after the original value deducts expected net residual value and the accrued accumulative amount of provision for impairment is amortized evenly based on straight line method. The intangible assets with indefinite service life are not amortized. The amortization method, service life and estimated residual value of all kinds ofintangibleassetsareshownasfollows:
|||||
|-|-|-|-|
|Categoryofassets|Servicelife|Estimatednetresidualvaluerate|Annualamortizationrate|
|Landuseright|40-50years|-|2-2.5%|
|Software|5-10years|-|10-20%|
|Trademark|10years|-|10%|

Attheendoftheperiod,theservicelifeandamortizationmethodoftheintangibleassetswithfinite servicelifeshallbereviewedandadjustedifnecessary.
5.18Impairmentoflong-term assets
On each balance sheet date, the Group and the Company check the long-term equity investments, fixed assets, construction in progress, productive biological assets and intangible assets with finite
service life to determine whether there is a sign indicating any impairment. If there is such a sign,
the recoverable amount shall be estimated. For intangible assets with indefinite service life and
thosenotreachingthe serviceableconditions,impairment testshouldbe takeneveryyearnomatter
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. thereisasignofdepreciationornot.
The estimated recoverable amount of the asset is based on the single asset. If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount is determined based on the asset group which the asset is in. The recoverable amount is the higher one between the net amount after the disposition expenses are deducted from the fair value of the asset or the asset groupandthecurrentvalueoftheestimatedfuturecashflow.
If the recoverable amount of the asset is lower than its bookvalue,the impairment provisionof the assetisaccruedbasedonthedifferenceandincludedinthecurrentprofitandloss.
Impairment test is carried out for goodwill at least at the end of each year. The impairment test of goodwillbe carriedout incombinationwiththerelatedassetgroupor assetcombination.That isto say, the book value of the goodwill is amortized to the asset group or asset combination benefiting from the synergistic effect of the business combination according to the reasonable methods from the acquisition date. If the recoverable amount of the asset group or asset combination which includes the amortizedgoodwill islowerthanthe bookvalue, the correspondingimpairment loss is recognized. The amount of impairment loss shall firstly offset the book value of the goodwill amortized to the asset group or asset combination and then offset the book value of other assets in proportion according to the proportion in the book value of other assets in the asset group or asset combinationexceptforthegoodwill.
After the impairment loss of assets has been recognized, it is not be reversed in the future accountingperiods.
5.19Long-term unamortized expenses
Long-term unamortized expenses refer to prepaid expenses occurred that should be borne by current and subsequent periods and should be amortized over more than one year. Long-term unamortizedexpensesareamortizedevenlyovertheexpectedbeneficialperiods.
Amortizationperiodofdifferentlong-termunamortizedexpensesoftheGroupareasfollows:
Amortizationperiod
Landrequisitionfee 50years
Landleasingfee 50years
Afforestationfee 5years
Decorationfee 3-5years
Other 3years
5.20Employee remuneration
5.20.1Accounting treatment method ofshort-term remuneration
During the accounting period that the employees provide services for the Group, the actual short-term remuneration is recognized as liabilities and included in the current profit and loss or relevant asset costs. The welfare expenses of the employees in the Group are included in the current profit and loss or relevant asset costs when occur based on the actual amount. The non-monetarywelfareexpensesoftheemployeesaremeasuredbythefairvalue.
Duringthe accounting periodthat the employees provide services fortheGroup,the corresponding employee remunerations and the corresponding liabilities are recognized and included in the currentprofitandloss orrelevant assetcostsafter the socialinsurance premiums includingmedical insurance premium, industrial injury insurance premium and birth insurance premium as well as housing provident funds are paid by the Group for the employees, and labor union dues and employee education funds are withdrawn by the Group according to the regulated withdrawing baseandproportion.
5.20.2Accounting treatment method ofwelfareafter resignation
TheGroupmakesthecontributionplanforthewelfareafterresignation.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. During the accounting period that the employees provide services for the Group, the amount to be deposited which is calculated in accordance with the contribution plan is recognized as liabilities andincludedinthecurrentprofitandlossorrelevantassetcosts.
5.20.3Accounting treatment method ofwelfareafter dismission
If the Group provides dismission welfare to the employees, the employee remuneration liabilities caused by the dismission welfare shall be recognized and included in the current profit and loss on the following date which is earlier: The Groupcan’t unilaterally withdraw the dismission welfare duetoterminationoflabor relationplanor redundancysuggestion;ortheGroupconfirms thecosts orexpensesrelatedtothereorganizationinvolvingthepaymentofthedismissionwelfare.
5.21Revenue
5.21.1Revenues fromsaleof goods
When the significant risks and rewards of ownership of goods have been transferred to the buyer, providedthat the Group maintains neither continuous management right involvement to the degree usually associated with ownership, nor effective control over the goods sold, and cost of sales can be measured reliably. When the relevant economic benefits are likely to flow into the enterprise andthe relevant incurredcost or cost tobe incurredcanbe measuredreliably,the realizationof the revenuefromsaleofgoodscanberecognized.
5.21.2Rendering ofservices
When income amount of rendering of services can be measured reliably, the relevant economic benefits are likely to flow into the Group, the stage of completion of the transaction can be measured reliably, and the incurred cost or cost to be incurred in the transaction can be measured reliably, then the income realization of rendering of services can be recognized. The Group confirmed the income of the rendered services according to percentage-of-completion method on the balance sheet date. The percentage-of-completion of the service transaction is determined according to the proportion of the rendered service accounting for the total services that shall be rendered.
If the outcome of rendering of service transaction cannot be reliably estimated, the income of the rendered services are determined according to the render cost amount that is incurred and is expectedtobecompensated,andtheincurredservicecostshallbetheperiodcharge.Iftheincurred servicecostisexpectedtobeunabletobecompensated,theincomewillnotbedetermined.
5.22Government allowances
5.22.1 Judgment standard and accounting treatment method of government allowances relatedto assets
Government allowances refer to monetary or non-monetary assets received by the Group from the government.Accordingtothenatureofthegrantedobjectclearlystipulatedinrelevantgovernment documents,governmentallowancesincludethoserelatedtoassetsandthoserelatedtoincome. Government allowances are recognized where there is a reasonable assurance that the allowances will be received and all attaching conditions will be complied with. Monetary allowances are measuredonthebasisoftheamountreceivedortheamountreceivable.
Government allowances related to assets are recognized as deferred income and are distributed equallyinthecurrentprofitandlosswithintheusefullivesoftherelevantassets.
5.22.2 Judgment standard and accounting treatment method of government allowances relatedto revenues
The government allowances related to revenues to be used as compensation for future expenses or losses are recognized as deferred income and are included in the profit and loss statement for the period where the relevant expenses are recognized; or those to be used as compensation for relevantexpensesorlossesalreadyoccurredarerecordeddirectlyinthecurrentprofitandloss.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 5.23Deferred income tax assets/deferred income tax liabilities
Theincometaxexpensesincludethecurrentincometaxanddeferredincometax.
5.23.1Currentincome tax
On the balance sheet date, the current income taxliabilities (or assets) formed inthe current period and the prior periods are measured according to the predicted payable (refundable) income tax amountasstipulatedbytaxlaw.
5.23.2Deferred income tax assets anddeferred income taxliabilities
The balance sheet liability method is used for recognizing deferred income tax assets and deferred income tax liabilities for the difference between certain assets, book value of liability items and their tax base, and the temporary differences arising from the book value of items (that are not recognizedasassetsandliabilitiesbutcanberecognizedthetaxbasesasstipulatedbytaxlaw)and taxbases.
Normally all temporary differences are recognized the relevant deferred income taxes. However, for the deductible temporary differences, the Group recognized the relevant deferred income tax assets taking the taxable income that is likely to be obtained for deducting deductible temporary differences as the limit. In addition, the temporary differences relevant to initial recognition of goodwillandrelevanttotheinitialrecognitionofassetsorliabilitiesarisingfromtransactionnotof businesscombination, andnotinfluencingaccountingprofitandtaxableincome(ordeductibleloss) arenotrecognizedfortherelevantdeferredincometaxassetsorliabilities.
For the deductible losses and tax credits that can be transferred during subsequent years, the corresponding deferred income tax assets shall be recognized by taking the future taxable income thatislikelytobeusedtodeductdeductiblelossesandtaxcreditsasthelimit.
The Group recognized the deferred income tax liabilities arising from the taxable temporary differences relevant to the subsidiary companies, except for that the Group can control the time of thereverse ofthetemporarydifferenceswhichareunlikelytobereversedintheforeseeable future. For the deductible temporary differences relevant to the subsidiary companies, the Group will recognize the deferred income tax assets only when the temporary differences are likely to be reversed in the foreseeable future and the taxable income for deducting deductible temporary differencesislikelytobeachievedinthefuture.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are measured according to the applicable tax rate during the period of expecting to repossess the relevantassetsorpayoffrelevantliabilitiesasstipulatedbytaxlaw.
Except for the current income taxes and deferred income taxes (relevant to transaction and matter that are directly included in other comprehensive income or stockholder's equity) that are included in other comprehensive income or stockholder's equity and the deferred income taxes arising from businesscombinationthatadjuststhebookvalueofthegoodwill, theexpensesorrevenuesofother currentincometaxesanddeferredincometaxesareincludedinthecurrentprofitandloss.
Onthe balance sheetdate, theGroupshall reviewthebookvalue ofdeferredincome taxassets and shall write down the book value of deferred income tax assets if sufficient taxable income is unlikely to be obtained in the future to deduct the benefits of deferred income tax assets. The amountwrittendownshallbereversedwhenitislikelytoobtainsufficienttaxableincome.
5.23.3Offsetofincometax
When there is the legal right of netting or intention of netting or carrying out obtaining assets and paying off liabilities at the same time, the current income tax asset and current income tax liability oftheGrouparereportedaccordingtothenetamountafteroffset.
Whenthere isthelegalright ofnettingthecurrentincome taxasset andcurrentincome taxliability andthedeferredincome taxassetsanddeferredincome taxliabilitiesarerelevanttotheincometax collected by same tax collection and management department on the same taxpayer or different
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. taxpayers, however, the involved tax payers intend to net the current income tax assets and liabilities or obtain assets and pay off liabilities at the same time during every period of reverse of each significant deferred income tax assets and liabilities in the future, deferred income tax assets and deferred income tax liabilities of the Group are reported according to the net amount after offset.
5.24Lease
5.24.1Accounting treatment method ofoperating lease
TheGrouprecordstheoperatingleasebusinessasalessee.
Rental expenses under the operating lease are credited to related costs of the assets or the current profit and loss on the straight line basis over the lease terms. The initial direct costs are credited to thecurrentprofitandloss.Contingentrentalsareincludedinthecurrentprofitandloss uponactual accrual.
5.25Changesin mainaccounting policies andaccounting estimates
5.25.1Changesin mainaccounting policies
Nil
5.25.2Changesin mainaccounting estimates
Nil
5.26Other
Critical assumptions and uncertain factors adopted for important judgements and accounting estimatesduringtheapplicationoftheaccountingpolicies
During the application of the accounting policies of this Financial Report IV, the Group needs to judge, estimate and assume the book value of the report items that are unable to be accurately measureddue tothe inherent uncertainties of business activities, in which the judgment, estimation and assumption are made based on the previous historical experience of the management level of the Group and considering other relevant factors. The actual results may have differences from the estimationoftheGroup.
The Group regularly reviews the above-mentioned judgment, estimation and assumption based on the continuous operation, and the change of accounting estimate only affects the current period of change, of which the influence number will be recognized at the current period of change; in case of influencing both current period and future period of change, the influence number will be recognizedatthecurrentperiodandfutureperiodofchange.
Critical assumptions anduncertain factors adopted foraccounting estimates
On the balance sheet date, the main critical assumptions and uncertainties in accounting estimates thatarelikelytoresultinsignificantadjustmentsinassetsandbookvalueofliabilitiesinthefuture periodinclude:
Deferredincometaxassets
Within the limit of the likeliness that there is sufficient taxable income to deduct deductible losses, the deferred income tax assets shall be recognized according to all deductible losses that have not been utilized, which requires the management level to use a lot of judgments to estimate the occurred time and amount of taxable income to be obtained in the future, and combine with tax planningstrategytodecidetheamountofdeferredincometaxassetsthatshallberecognized.
Depreciation
The Group uses straight line method for provision for depreciation within the expected service life after considering the residual value of the fixed assets. The Group regularly reviewed the expected service life to decide the amount of depreciation expense that will be included in every report
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. period. The expected service life is recognized by the Group according to the previous experience onsimilarassetsandincombinationwiththeexpectedtechnicalchanges.Thedepreciationexpense shallbeadjustediftherearesignificantchangesinthepreviousestimate.
Servicelifeofintangibleassets
The expected service life of intangible assets are estimated based on actual service life of the previous intangible assets of similar natures and functions and according to historical experience and in consideration of the duration of the contractual rights or other legal rights applicable to the intangibleassets.
Incasethattheservice lifeof theintangibleassetsshortens orextends,theamortizationperiodwill be adjusted in the future period for intangible assets with finite life; for intangible assets with indefinite life, if there is evidence showing that their service life is finite, their service life will be estimated in the future period and they will be disposed according to the disposal principles of intangibleassetswithfinitelife.
Impairmentoflong-termassets
The Group carries out impairment assessment on long-term assets to determine if the recoverable amount of assets drops to the amount lower than their book value. If the situation shows that the book value of the long-term assets may not be fully recovered, the relevant assets will be deemed ashavingbeenimpairedandtheimpairmentlossshallbecorrespondinglyrecognized.
The recoverable amount is the higher in: the net amount of fair value of an asset (or asset group) minus disposal expense, and the present value of the estimated future cash flow of the asset (or asset group). It is difficult for theGrouptoaccurately estimate thefair value of an assetbecause of difficulty in obtaining the open market price of the asset (or asset group). It needs to make significant judgments on the output, selling price, relevant operating cost of the asset (or asset group)andthediscountrateusedforcalculatingpresentvaluewhenestimatingthepresentvalueof future cash flow. The Group will use all easily available materials in estimating the recoverable amount, including the forecast relevant to output, selling price and relevant operating cost accordingtothereasonableandsupportableassumption.
Badaccountprovisionofaccountsreceivable
Bad account provision of accounts receivable shall be recognized by the management level accordingtotheobjectiveevidences(e.g.thepossibilityofbankruptcyorseverefinancialdifficulty of the debtor) that can affect the recovery of the accounts receivable. The management level will reevaluatebadaccountprovisionintheendofeveryyear.
Inventorydepreciationprovisionaccruedbasedonnetrealizablevalue
According to the inventory accounting policy, the Group carries out price decrease provision for obsolete and unsalable inventories with higher cost than the net realizable value measurement according to the lower of the cost and net realizable value. The Group will reevaluate if the inventoriesareobsoleteandunsalable,andifthenetrealizablevalueislowerthaninventorycostin theendofeveryyear.
6. Taxes
6.1Maintaxesandtaxrate
||||
|-|-|-|
|Taxes|Taxbasis|Taxrate|
|Valueaddedtax|VAT is levied by the output tax calculated by thetaxable revenue as the tax base after deduction ofeligibleinputVATinthisperiod.|17% (China), 19.6%(France) and 21%(Spain)|
|Consumptiontax|The consumption tax is levied by the taxable revenue|10%-20%(China)|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
||asthetaxbase.||
|Businesstax|Thebusinesstaxisleviedbythetaxablerevenueasthetaxbase.|5%(China)|
|Urban maintenanceandconstructiontax|The urban maintenance and construction tax is leviedbytheactuallypaidturnovertaxasthetaxbase.|7%(China)|
|Corporateincometax|The corporate income tax is levied by the taxableincomeasthetaxbase.|25% (China), 33%(France) and 30%(Spain)|

6.2Taxincentives
NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”),asubsidiaryoftheCompany,whose principal activity is grape growing, is incorporated in Yongning County, Ningxia Hui Autonomous Region. According to Article 27 of PRC Corporate Income Tax and Article 86 of PRC Corporate Income Tax Measures for Implementation, it enjoys an exemption of corporate income tax related to grapegrowing.
Xinjiang Tianzhu Wine Co., Ltd. (“Xinjiang Tianzhu”) and Xinjiang Chateau Changyu Baron Balboa Co., Ltd. (“Shihezi Chateau”), the subsidiaries of the Company, are enterprises engaged in the production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. In accordance with relevant regulations of the Notice on Relevant Issues of Taxes Policies for Deeply ImplementingtheWesternDevelopmentStrategy(CaiShui[2011] No.58),the corporate income taxof the encouraged enterprises established in the western regions are levied at the tax rate of15% from January1,2011toDecember31,2020.
7. Notes to consolidated financial statement
7.1Monetary capital
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Cashonhand|189,184|179,488|
|Bankdeposit|1,654,464,797|1,103,705,354|
|Othermonetarycapitals|179,357,472|181,477,572|
|Total|1,834,011,453|1,285,362,414|
|Including:Totalamountoffundsdepositedabroad|7,482,748|6,019,640|

As at June 30, 2016, the bank deposit with ownership restrictions of the Group was RMB 2,711,926 Yuan(December31,2015:RMB2,643,181Yuan),whichwasthehousingfundintheGroup.
As at June 30, 2016, other monetary capital of the Group included the pledge deposit of RMB 125,000,000YuanforloansfromHSBCofHKD152,000,000(equivalenttoRMB129,914,400Yuan),
fixed-term deposit of RMB 46,100,000 Yuan pledged by Yantai Changyu Wine Research,
Development& Manufacture Co., Ltd.(“R&D Company”), refundable deposits for bills payable of
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. Xinjiang Changyu Wine Sales Co., Ltd. (“Xinjiang Sales”) of RMB 8,130,000 Yuan and guaranty moneyfordepositsinthepubliccardofRMB127,472Yuan.
As at June 30, 2016, the Group had monetary capital of RMB 7,482,748 Yuan that was deposited abroad(December31,2015:RMB6,019,640Yuan).
As at June 30, 2016The bank deposits of the Group including time deposits ranging from 3 months to 6 months amounted to RMB 8,007,000 Yuan (December 31, 2015: RMB 9,000,000 Yuan), with theinterestratesrangingfrom1.40%-1.69%.
7.2Billsreceivable
7.2.1Classificationof bills receivable
Unit:Yuan
||||
|-|-|-|
|Type|Endingbalance|Beginningbalance|
|Bankacceptance|216,068,017|113,988,122|
|Tradeacceptance|||
|Total|216,068,017|113,988,122|

 7.2.2Bills receivablepledged by theCompany attheend ofperiod
Nil
7.2.3 Bills receivable endorsed or discounted by the Company at the end of period but notyetmatured as ofthebalancesheet date
Unit: Yuan
||||
|-|-|-|
|Item|Amountterminatingrecognitionattheendofperiod|Amountnotterminatingrecognitionattheendofperiod|
|Bankacceptance|331,544,213||
|Tradeacceptance|||
|Total|331,544,213||

7.2.4 Bills receivable reclassified as accounts receivable by the Company due to the defaultofdrawer atthe endofperiod
Nil
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.3Accounts receivable
7.3.1Accounts receivabledisclosed bytype
Unit:Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type|Endingbalance|||||Beginningbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Proportion|Amount|Accruedproportion||Amount|Proportion|Amount|Accruedproportion||
|Accountsreceivableofsignificantsingleamountandsingleaccruedbaddebtprovision|82,211,281|43.1%|||82,211,281|74,538,738|37.7%|||74,538,738|
|Accountsreceivableaccruedbaddebtprovisionbycreditriskfeatures|||||||||||
|Accountsreceivableofinsignificantsingleamountandsingleaccruedbaddebtprovision|108,408,065|56.9%|||108,408,065|123,256,353|62.3%|||123,256,353|
|Total|190,619,346|100%|||190,619,346|197,795,091|100%|||197,795,091|

 Thecredittermofaccountsreceivableisnormallyonemonth.Majorcustomerscanbegrantedacredit termuptothreemonths.Theaccountsreceivablearefreefrominterest.
As at June 30, 2016, the accounts receivable with ownership restrictions was RMB 26,671,881 Yuan (December31,2015:RMB23,880,775Yuan).PleaserefertoNote7.18forthedetails.
7.3.2Baddebtprovisionaccrued, transferred backor received inthis period
The bad debt provision accrued in this period was RMB 0 Yuan; and that transferred back or received in this period was RMB 0Yuan.
7.3.3Accounts receivableactually cancelled after verificationin this period
Nil
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending balance
||||||
|-|-|-|-|-|
|Unit|RelationshipwiththeCompany|Amount|Period|Percentageintotalaccountsreceivable|
|NonggongshangSupermarket(Group)Co.,Ltd.|Thirdparty|17,337,863|Within1year|9.1%|
|Wal-mart(China)InvestmentCo.,Ltd.|Thirdparty|13,970,035|Within1year|7.3%|
|DIAMarket|Thirdparty|8,189,069|Within1year|4.3%|
|LianhuaSupermarketHoldingsCo.,Ltd.|Thirdparty|7,829,852|Within1year|4.1%|
|SuguoSupermarketCo.,Ltd.|Thirdparty|7,678,879|Within1year|4.0%|
|Total|--|55,005,698|--|28.8%|

7.3.5Accounts receivableterminating recognition dueto transferoffinancial assets
Nil
7.3.6Accounts receivabletransferred andincluded inassets and liabilities
Nil
7.4Advancepayment
7.4.1Advancepaymentlisted byage
Unit:Yuan
||||||
|-|-|-|-|-|
|Age|Endingbalance||Beginningsum||
||Amount|Proportion|Amount|Proportion|
|Within1year|1,701,337|90.4%|3,096,223|86.2%|
|1-2years|130,869|7.0%|494,875|13.8%|
|2-3years|50,651|2.6%|||
|Morethan3years|||||
|Total|1,882,857|--|3,591,098|--|

7.4.2 Advance payment collected by the prepaid parties of top 5 units ranked by the ending balance
|||||||
|-|-|-|-|-|-|
|Unit|RelationshipwiththeGroup|Amount|Age|Reasonforunsettlement|Percentageinthetotaladvance|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||
|-|-|-|-|-|-|
||||||payment%|
|ShandongElectricPowerGroupCompanyYantaiPowerSupplyCompany|Thirdparty|542,206|Within1year|Prepaidelectricitypurchasingfund|28.8%|
|NingxiaShuyingGuangtongIndustryandTradeCo.,Ltd.|Thirdparty|140,200|Within1year|Failuretoreceivethegoods|7.4%|
|ChongqingHosonGlassCo.,Ltd.|Thirdparty|110,220|Within1year|Failuretoreceivethegoods|5.9%|
|PetroChinaCo.,Ltd.NingxiaYinchuanSalesBranch|Thirdparty|30,000|Within1year|Failuretoreceivethegoods|1.6%|
|SinopecSalesCo.,Ltd.HebeiLangfangPetroleumBranch|Thirdparty|27,000|Within1year|Failuretoreceivethegoods|1.4%|
|Total|--|849,626|--|--|45.1%|

 7.5Interest receivable
7.5.1Interest receivable
Unit:Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Timedeposit|10,597,464|8,019,338|
|Entrustedloan|||
|Bondinvestment|||
|Total|10,597,464|8,019,338|

 7.6Otheraccounts receivable
7.6.1Otheraccounts receivabledisclosed bytype
Unit:Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type|Endingbalance|||||Beginningbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Proportion|Amount|Accruedproportion||Amount|Proportion|Amount|Accruedproportion||
|Otheraccountsreceivableofsignificantsingleamountandsingleaccruedbaddebtprovision|31,800,691|53.7%|7,199,521|22.6%|24,601,170|32,390,931|60.7%|7,199,521|22.2%|25,191,410|
|Otheraccounts|||||||||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|receivableaccruedbaddebtprovisionbycreditriskfeatures|||||||||||
|Otheraccountsreceivableofinsignificantsingleamountandsingleaccruedbaddebtprovision|27,419,192|46.3%|||27,419,192|20,955,077|39.3%|||20,955,077|
|Total|59,219,883|100%|7,199,521|12.2%|52,020,362|53,346,008|100%|7,199,521|14.0%|46,146,487|

 Other accounts receivable of significant single amount and single accrued bad debt provision at theend ofperiod:
Unit: Yuan
||||||
|-|-|-|-|-|
|Otheraccountsreceivable(byunit)|Endingbalance||||
||Otheraccountsreceivable|Baddebtprovision|Accruedproportion|Reasonforaccrual|
|TiantongSecuritiesCo.,Ltd.|7,199,521|7,199,521|100%|Thiscompanyisinbankruptcyliquidation.|
|Total|7,199,521|7,199,521|--|--|

7.6.2Baddebtprovisionaccrued, transferred backor received inthis period
The bad debt provision accrued in this period was RMB 0 Yuan; and that transferred back or received in this period was RMB 0Yuan.
7.6.3Otheraccounts receivableactually cancelled after verification inthis period
Nil
7.6.4Otheraccounts listed by nature
Unit: Yuan
||||
|-|-|-|
|Nature|Endingbookbalance|Beginningbookbalance|
|Depositandguarantymoneyreceivable|27,131,541|27,424,926|
|Investmentreceivable|7,199,521|7,199,521|
|Fundofdisbursementreceivable|7,022,385|6,679,122|
|Consumptiontaxandhousedutyreimbursement|1,218,388|635,482|
|Other|16,648,048|11,406,957|
|Total|59,219,883|53,346,008|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.6.5 Other accounts receivable collected by the borrowers of top 5 units ranked by the ending balance
Unit: Yuan
|||||||
|-|-|-|-|-|-|
|Unit|Nature|Endingbalance|Age|Percentageintotalendingbalanceofotheraccountsreceivable|Endingbalanceofbaddebtprovision|
|YEDAConstructionEnterpriseOld-ageSecurityPensionManagementOffice|Constructionguarantee|12,325,300|1-2years|20.8%||
|YEDAFinanceBureau|Constructionguarantee|7,275,870|1-2years|12.3%||
|TiantongSecuritiesCo.,Ltd.|Investment|7,199,521|Over3years|12.2%|7,199,521|
|YEDAConstructionIndustryAssociation|Constructionguarantee|5,000,000|Over3years|8.4%||
|CanadaOrosIcewineCo.,Ltd.|Foreigninvestmentreceivable|2,050,000|Within1year|3.5%||
|Total|--|33,850,691|--|57.2%|7,199,521|

 7.6.6 Other accounts receivable terminating recognition due to transfer of financial assets
Nil
7.6.7Otheraccounts receivabletransferred andincluded in assets andliabilities
Nil
7.7Inventories
7.7.1Inventory classification
Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Depreciationprovision|Bookvalue|Bookbalance|Depreciationprovision|Bookvalue|
|Rawmaterials|58,624,919||58,624,919|89,256,433||89,256,433|
|Goodsinprocess|1,053,697,549||1,053,697,549|1,247,023,301||1,247,023,301|
|Commoditystocks|752,798,168|18,147,490|734,650,678|942,720,720|18,147,490|924,573,230|
|Total|1,865,120,636|18,147,490|1,846,973,146|2,279,000,454|18,147,490|2,260,852,964|

7.7.2Inventory depreciation provision
Unit:Yuan
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod||Decreaseinthisperiod||Endingbalance|
|||Accrual|Other|Transferbackorwrite-off|Other||
|Rawmaterials|||||||
|Goodsinprocess|||||||
|Commoditystocks|18,147,490|||||18,147,490|
|Total|18,147,490|||||18,147,490|

 7.8Othercurrentassets
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Prepaidtaxes|58,958,560|31,782,345|
|Advancerentalpayment|13,355,634|16,667,206|
|Total|72,314,194|48,449,551|

 7.9Available-for-salefinancial assets
7.9.1Available-for-salefinancialassets
Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Impairmentprovision|Bookvalue|Bookbalance|Impairmentprovision|Bookvalue|
|Available-for-salefinancialinstruments:|||||||
|Available-for-saleequityinstruments:|10,345,365|10,000,000|345,365|10,402,814|10,000,000|402,814|
|Fairvaluemeasurement|||||||
|Costmeasurement|10,345,365|10,000,000|345,365|10,402,814|10,000,000|402,814|
|Total|10,345,365|10,000,000|345,365|10,402,814|10,000,000|402,814|

 7.9.2Available-for-salefinancialassets bycost measurement attheend ofperiod
Unit: Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investedunit|Bookbalance||||Impairmentprovision||||Shareholdingratiointheinvestedunit|Cashdividendinthisperiod|
||Beginning|Increaseinthisperiod|Decreaseinthisperiod|Ending|Beginning|Increaseinthisperiod|Decreaseinthisperiod|Ending|||
|YantaiDingtaoConstructionandDevelopmentCo.,Ltd.|10,000,000|||10,000,000|10,000,000|||10,000,000|18%||
|Other|402,814||57,449|345,365|||||Lessthan1%||
|Total|10,402,814||57,449|10,345,365|10,000,000|||10,000,000|--||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.9.3Changesof impairmentof available-for-salefinancial assets in thereportperiod Unit:Yuan
|||||
|-|-|-|-|
|Classificationofavailable-for-salefinancialassets|Available-for-saleequityinstruments|Available-for-saledebtinstruments|Total|
|Accruedimpairmentbalanceatthebeginningofperiod|10,000,000||10,000,000|
|Accruedamountofthisperiod||||
|Including:Transferredinfromothercomprehensiveincome||||
|Decreaseinthisperiod||||
|Including:Fairvaluerecoveredandtransferredbackafterdate||||
|Accruedimpairmentbalanceattheendofperiod|10,000,000||10,000,000|

7.10Fixed assets
7.10.1Particulars of fixedassets
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|Buildings|Machineriesandequipment|Transportationtools|Total|
|ⅠOriginalbookvalue:|||||
|1.Beginningbalance|2,647,418,685|1,498,619,150|28,457,393|4,174,495,228|
|2.Increase|50,494,747|22,918,394|176,391|73,589,532|
|2.1Acquisition|4,261,878|20,707,188|175,045|25,144,111|
|2.2Transferinfromconstructioninprogress|26,572,431|85,937||26,658,368|
|2.3Businessmergerincrease|19,660,438|2,125,269|1,346|21,787,053|
|2.4Other|||||
|3.Decrease|36,640|359,337|4,092,432|4,488,409|
|3.1Disposalorretirement|36,640|359,337|4,092,432|4,488,409|
|3.2Other|||||
|4.Endingbalance|2,697,876,792|1,521,178,207|24,541,352|4,243,596,351|
|ⅡAccumulateddepreciation|||||
|1.Beginningbalance|336,439,433|725,768,456|23,042,154|1,085,250,043|
|2.Increase|49,218,774|51,339,001|1,101,937|101,659,712|
|2.1Accrual|37,225,905|49,883,106|1,100,591|88,209,602|
|2.2Businessmergerincrease|11,992,869|1,455,895|1,346|13,450,110|
|2.3Other|||||
|3.Decrease|18,383|286,929|3,887,811|4,193,123|
|3.1Disposalorretirement|18,383|286,929|3,887,811|4,193,123|
|3.2Other|||||
|4.Endingbalance|385,639,824|776,820,528|20,256,280|1,182,716,632|
|ⅢImpairmentprovision|||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||
|-|-|-|-|-|
|Item|Buildings|Machineriesandequipment|Transportationtools|Total|
|1.Beginningbalance|||||
|2.Increase|||||
|2.1Accrual|||||
|2.2Other|||||
|3.Decrease|||||
|3.1Disposalorretirement|||||
|3.2Other|||||
|4.Endingbalance|||||
|ⅣBookvalue|||||
|1.Endingbookvalue|2,312,236,968|744,357,679|4,285,072|3,060,879,719|
|2.Beginningbookvalue|2,310,979,252|772,850,694|5,415,239|3,089,245,185|

 As at June 30, 2016, the net value of the fixed assets with ownership restrictions was RMB 28,564,102 Yuan (December 31, 2015: RMB 18,405,000 Yuan). Please refer to Note 7.28 for thedetails.
7.10.2Temporarily idlefixed assets
Nil
7.10.3Fixed assets underfinanceleases
Nil
7.10.4Fixed assets underoperating lease
Nil
7.10.5Fixed assets withoutproperty certificates
Unit:Yuan
||||
|-|-|-|
|Item|Bookvalue|Reasonfornotreceivingthepropertycertificate|
|WorkshopandPlantofXinjiangShiheziChateau|257,613,251|Undertransaction|
|EuropeanTown,MainBuildingandServiceBuildingofBeijingChateau|223,713,088|Undertransaction|
|DormitoryBuilding,MainBuildingandReceptionBuildingofChang’anChateau|151,765,586|Undertransaction|
|MainBuilding,LabellingWorkshopandTastingCenterofNingxiaChateau|148,045,312|Undertransaction|
|MainBuildingofYantaiChangyuTinlotChateau|92,379,345|Undertransaction|
|ProvincialOfficeofSalesCompany|43,164,308|Undertransaction|
|FermentationWorkshopandStorageWorkshopofXinjiangTianzhu|19,432,497|Undertransaction|
|OfficeBuildingandPackagingWorkshopofIcewineChateau|9,967,911|Undertransaction|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|OfficeBuilding,LaboratoryBuildingandWorkshopofFermentationCenter|6,106,452|Undertransaction|
|Wine-makingWorkshopofChangyu(Jingyang)|4,534,109|Undertransaction|
|FinishedGoodsWarehouseandWorkshopofKylinPackaging|2,623,545|Undertransaction|

7.11Construction inprogress
7.11.1Construction inprogress
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Impairmentprovision|Bookvalue|Bookbalance|Impairmentprovision|Bookvalue|
|ConstructionProjectofResearch,Development&ManufactureCenter(thepresent“ChangyuWineCityComplex”)|2,368,117,940||2,368,117,940|1,799,097,086||1,799,097,086|
|ConstructionProjectofXianyangChateau|183,451,421||183,451,421|61,308,522||61,308,522|
|ConstructionProjectofSalesCompany|60,811,797||60,811,797|55,645,386||55,645,386|
|PlantConstructionProjectofHuanrenWinery|32,441,417||32,441,417|29,502,825||29,502,825|
|ConstructionProjectofShiheziChateau|39,215,755||39,215,755|28,105,618||28,105,618|
|ConstructionProjectofNingxiaChateau|40,907,546||40,907,546|13,709,767||13,709,767|
|ConstructionProjectofTinlotChateau|4,930,221||4,930,221|5,000,221||5,000,221|
|ConstructionandReconstructionProjectofJoint-stockCompany|7,183,477||7,183,477|7,990,777||7,990,777|
|TourismSquareReconstructionProjectofAFIP|4,349,945||4,349,945|3,659,245||3,659,245|
|ConstructionProjectsofOtherCompanies|5,262,411||5,262,411|1,970,861||1,970,861|
|Total|2,746,671,930||2,746,671,930|2,005,990,308||2,005,990,308|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.11.2Changesof major construction inprogress inthis period
Unit: Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Budget|Beginningbalance|Increase|Transferredtofixedassets|Otherdecrease|Endingbalance|Proportionofaccumulativeprojectinputinbudget|Constructionprogress|Accumulativecapitalizationamountofinterest|Including:capitalizationamountofinterestinthisperiod|Capitalizationratioofinterestinthisperiod|Capitalsource|
|ConstructionProjectofResearch,Development&ManufactureCenter(thepresent“ChangyuWineCityComplex”)|3,505,780,000|1,799,097,086|569,020,854|||2,368,117,940|67.5%|||||Other|
|ConstructionProjectofXianyangChateau|620,740,000|61,308,522|143,139,645|20,996,746||183,451,421|122.6%|||||Other|
|ConstructionProjectofSalesCompany|161,350,000|55,645,386|5,166,411|||60,811,797|102.3%|||||Other|
|PlantConstructionProjectofHuanrenWinery|31,000,000|29,502,825|2,938,592|||32,441,417|104.7%|||||Other|
|ConstructionProjectofShiheziChateau|780,000,000|28,105,618|11,110,137|||39,215,755|87.5%|||||Other|
|ConstructionProjectofNingxiaChateau|414,150,000|13,709,767|27,197,779|||40,907,546|104.5%|||||Other|
|ConstructionProjectofTinlotChateau|192,400,000|5,000,221|4,527,102|4,597,102||4,930,221|95.7%|||||Other|
|Total|5,705,420,000|1,992,369,425|763,100,520|25,593,848||2,729,876,097|--|--||||--Other|

 As at June30,2016,there was noindication for impairment inconstruction in process oftheGroup, so noprovisionwas made.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.12Productive biological assets
7.12.1Productive biological assets adoptingcost measurement mode
Unit: Yuan
|||||||
|-|-|-|-|-|-|
|Item|Plantation|AnimalHusbandry|Forestry|Aquaculture|Total|
|ⅠOriginalbookvalue||||||
|1. Beginningbalance|203,567,857||||203,567,857|
|2. Increase|26,116,499||||26,116,499|
|2.1Outsourcing||||||
|2.2Selfcultivation|22,052,554||||22,052,554|
|2.3Businessmergerincrease|4,063,945||||4,063,945|
|3. Decrease||||||
|3.1Disposal||||||
|3.2Other||||||
|4.Endingbalance|229,684,356||||229,684,356|
|ⅡAccumulateddepreciation||||||
|1. Beginningbalance|11,369,574||||11,369,574|
|2. Increase|5,248,490||||5,248,490|
|2.1Accrual|3,017,544||||3,017,544|
|2.2Businessmergerincrease|2,230,946||||2,230,946|
|3. Decrease||||||
|3.1Disposal||||||
|3.2Other||||||
|4.Endingbalance|16,618,064||||16,618,064|
|ⅢImpairmentprovision||||||
|1. Beginningbalance||||||
|2. Increase||||||
|2.1Accrual||||||
|3. Decrease||||||
|3.1Disposal||||||
|3.2Other||||||
|4.Endingbalance||||||
|ⅣBookvalue||||||
|1. Endingbookvalue|213,066,292||||213,066,292|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|2. Beginningbookvalue|192,198,283|192,198,283|

 AsatJune30,2016,noownershipofthebiologicalassetswasrestricted.
As at June 30, 2016, the productive biological assets of the Group included mature productive biological assets of RMB 61,089,955 Yuan (December 31, 2015: RMB 59,391,773 Yuan) and immature productive biologicalassetsofRMB151,976,337Yuan(December31,2015:RMB132,806,510Yuan).
As at June 30, 2016, there was no indication that biological assets may be impaired, so no provision was made.
7.13Intangibleassets
7.13.1Particulars ofintangibleassets
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|Landuseright|Patentright|Non-patentedtechnology|Total|
|ⅠOriginalbookvalue|||||
|1. Beginningbalance|467,605,436|37,653,788|15,237,653|520,496,877|
|2. Increaseinthisperiod|194,631|155,948|173,848|524,427|
|2.1Acquisition|194,631|150,000|171,271|515,902|
|2.2InternalR&D||||-|
|2.3Businessmergerincrease||5,948|2,577|8,525|
|3. Decreaseinthisperiod|||-|-|
|3.1Disposal|||-||
|4. Endingbalance|467,800,067|37,809,736|15,411,501|521,021,304|
|ⅡAccumulatedamortization||||-|
|1. Beginningbalance|46,649,712|9,826,191|121,058|56,596,961|
|2. Increaseinthisperiod|4,789,651|1,202,724|953,427|6,945,802|
|2.1Accrual|4,789,651|1,196,776|953,427|6,939,854|
|2.2Businessmergerincrease||5,948||5,948|
|3. Decreaseinthisperiod||||-|
|3.1Disposal|||-|-|
|4. Endingbalance|51,439,363|11,028,915|1,074,485|63,542,763|
|ⅢImpairmentprovision||||-|
|1. Beginningbalance|||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||
|-|-|-|-|-|
|2. Increaseinthisperiod||||-|
|2.1Accrual||||-|
|3. Decreaseinthisperiod||||-|
|3.1Disposal|||||
|4. Endingbalance||||-|
|ⅣBookvalue||||-|
|3. Endingbookvalue|416,360,704|26,780,821|14,337,016|457,478,541|
|4. Beginningbookvalue|420,955,724|27,827,597|15,116,595|463,899,916|

 7.14Goodwill
7.14.1Originalbook valueof goodwill
Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Nameoftheinvestedunitormatterforminggoodwill|Beginningbalance|Increaseinthisperiod||Decreaseinthisperiod||Endingbalance|
|||Formedfrombusinessmerger|Other|Disposal|Other||
|EtablissementsRoulletFransac|13,112,525|||||13,112,525|
|DicotPartners,S.L|92,391,901|||||92,391,901|
|SOCIETECIVILEAGRICOLEDUCHATEAUDEMIREFLEURS(“MIREFLEURS”)||13,982,153||||13,982,153|
|Total|105,504,426|13,982,153||||119,486,579|

 7.15Long-term unamortized expenses
Unit: Yuan
|||||||
|-|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod|Amortizationinthisperiod|Otherdecrease|Endingbalance|
|Landleasefees|59,328,587|316,285|1,010,855||58,634,017|
|Land-usefees|46,409,764||715,293||45,694,471|
|Afforestationfees|34,229,777|14,009,400|5,119,209||43,119,968|
|Renovationcosts|23,957,390|2,407,628|6,042,785||20,322,233|
|Other|11,198,649|7,147,523|1,140,979||17,205,193|
|Total|175,124,167|23,880,836|14,029,121||184,975,882|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.16Deferred income tax assets/liabilities
7.16.1Un-off-set deferred income tax assets
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|EndingBalance||BeginningBalance||
||Deductibletemporarydifference|Deferredincometaxassets|Deductibletemporarydifference|Deferredincometaxassets|
|Assetimpairmentprovision|35,347,011|8,836,752|35,347,011|8,836,753|
|Unrealizedprofitsfrominter-companytransactions|557,348,660|139,337,165|691,741,084|172,935,271|
|Deductibleloss|261,244,439|65,311,110|265,793,269|66,448,318|
|Unpaidbonus|107,114,508|26,778,627|133,017,447|33,254,362|
|Dismissionwelfare|15,323,295|3,830,824|16,147,369|4,036,842|
|Deferredincome|75,554,681|15,701,677|81,078,284|16,895,110|
|Total|1,051,932,594|259,796,155|1,223,124,464|302,406,656|

 7.16.2Un-off-set deferred income tax liabilities
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|EndingBalance||BeginningBalance||
||Taxabletemporarydifference|Deferredincometaxliabilities|Taxabletemporarydifference|Deferredincometaxliabilities|
|Assetsappraisalappreciationinbusinessmergerundernon-commoncontrol|114,652,462|33,561,414|117,475,753|34,350,349|
|Changeinfairvalueofavailable-for-salefinancialassets|||||
|Total|114,652,462|33,561,414|117,475,753|34,350,349|

 7.16.3Details ofunconfirmed deferred income taxassets
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Deductibleloss|68,985,254|41,690,051|
|Total|68,985,254|41,690,051|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.16.4Deductiblelosses ofunconfirmed deferred income tax assets will expirein:
Unit: Yuan
|||||
|-|-|-|-|
|Year|Endingsum|Beginningsum|Remark|
|2020|41,690,051|41,690,051||
|2021|27,295,203|||
|Total|68,985,254|41,690,051|--|

7.17Other non-currentassets
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|PaymentinadvanceforSOCIETECIVILEAGRICOLEDUCHATEAUDEMIREFLEURS(“MIREFLEURS”)||28,096,895|
|Accountsreceivableduetothetransferofbiologicalassets|17,137,746|17,137,746|
|Total|17,137,746|45,234,641|

 7.18Short-term loans
7.18.1Classification ofshort-term loans
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Pledgeloan|||
|Mortgageloan|26,671,881|25,291,133|
|Guaranteedloan|||
|Fiduciaryloan|639,881,300|640,290,788|
|Total|666,553,181|665,581,921|

 As at June 30, 2016, the factoring business of Atrio Group in such banks as BANKIA SA with the accounts receivable was EUR 3,616,526(equivalent to RMB26,671,881Yuan).
7.19Billspayable
Unit: Yuan
||||
|-|-|-|
|Type|Endingbalance|Beginningbalance|
|Tradeacceptance||10,000,000|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Bankacceptance|8,130,000|29,000,000|
|Total|8,130,000|29,000,000|

 7.20Accounts payable
7.20.1Listofaccounts payable
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Withinoneyear|365,187,764|567,791,049|
|Fromoneyeartotwoyears|4,541,631|1,487,319|
|Fromtwoyearstothreeyears|1,483,819||
|Overthreeyears|||
|Total|371,213,214|569,278,368|

 7.20.2Significantaccounts payableaged more than oneyear
As at June 30,2016,theGroup had nosignificant accounts payable aged more than one year. 7.21Advances fromcustomers
7.21.1Listofadvances fromcustomers
Unit: Yuan
||||
|-|-|-|
|Item|Endingsum|Beginningsum|
|Withinoneyear|356,012,056|229,993,684|
|Fromoneyeartotwoyears|3,369,608|286,001|
|Fromtwoyearstothreeyears|286,001|530,799|
|Overthreeyears|4,186,316|3,756,020|
|Total|363,853,981|234,566,504|

 7.21.2Advances from customers of significantamountaged more than oneyear
As at June 30,2016,theCompany had noadvances from customers of significant amount aged more than oneyear.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.22Employee benefits payable
7.22.1Listofemployee benefitspayable
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|
|1.Short-termremuneration|174,061,906|164,218,276|211,051,552|127,228,630|
|2.Post-employmentwelfare–definedcontributionplan|30,176|16,496,837|16,020,168|506,845|
|3.Dismissionwelfare|16,147,369|1,192,853|2,016,927|15,323,295|
|4.Otherwelfareduewithinoneyear|||||
|Total|190,239,451|181,907,966|229,088,647|143,058,770|

 7.22.2Listofshort-term remuneration
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|
|1.Salaries,bonuses,allowancesandsubsidies|170,720,455|146,160,715|193,565,689|123,315,481|
|2.Staffwelfare|179,078|4,538,999|4,507,364|210,713|
|3.Socialinsurancecharges|268,019|7,371,973|7,095,930|544,062|
|Including:Medicalinsurance|268,019|6,351,204|6,143,430|475,793|
|Injuryinsurance||678,697|640,110|38,587|
|Maternityinsurance||342,072|312,390|29,682|
|4.Housingfund|47,318|4,601,896|4,428,192|221,022|
|5.Unionfeeandeducationfee|2,847,036|1,544,693|1,454,377|2,937,352|
|6.Short-termcompensatedabsences|||||
|7.Short-termprofit-sharingplan|||||
|8.Other|||||
|Total|174,061,906|164,218,276|211,051,552|127,228,630|

 7.22.3Listofdefined contributionplan
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increase|Decrease|Endingbalance|
|1.Basicendowmentinsurance|29,995|15,751,716|15,304,729|476,982|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increase|Decrease|Endingbalance|
|2.Unemploymentinsurance|181|745,121|715,439|29,863|
|3.Enterpriseannuitypayment|||||
|Total|30,176|16,496,837|16,020,168|506,845|

 7.22.4Dismissionwelfare
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increase|Decrease|Endingbalance|
|1.Compensationforserveroflaborrelation|||||
|2.Compensationforearlyretirement|16,147,369|1,192,853|2,016,927|15,323,295|
|Total|16,147,369|1,192,853|2,016,927|15,323,295|

 7.23Taxes payable
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Valueaddedtax|-109,356,166|-45,821,559|
|Consumptiontax|7,079,077|18,638,837|
|Businesstax||509,491|
|Corporateincometax|23,740,019|49,020,665|
|Individualincometax|7,226,125|6,587,254|
|Urbanmaintenanceandconstructiontax|962,632|4,197,401|
|Propertytax|652,393|855,668|
|Urbanlandusetax|2,651,566|2,812,536|
|Other|675,020|4,484,814|
|Total|-66,369,334|41,285,107|

 7.24Interest payable
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Interestoflong-termloanspaidbyinstallmentswithrepaymentofprincipalatmaturity|659,680|643,973|
|Interestofenterprisebonds|||
|Interestpayableofshort-termloans|333,331|333,331|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Interestofpreferredstock/perpetualcapitalsecuritiesincludedinfinancialliabilities|||
|Other|||
|Total|993,011|977,304|

 7.25Otherpayables
7.25.1Other payables listed bynature
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Distributor’sdepositpayable|140,712,535|114,475,163|
|Equipmentpurchaseandconstructioncostspayable|247,016,490|92,580,929|
|Transportationchargespayable|11,353,913|29,713,956|
|TrademarkusefeepayableforChangyuGroupCompany|49,049,769|86,001,287|
|Advertisingexpensespayable|143,110,124|76,818,144|
|Increasedcapitalofminorityshareholders|22,522,636|22,522,636|
|Employeecashdeposit|9,344,048|16,078,904|
|Supplier’sdepositpayable|5,248,221|5,644,909|
|Contractfeepayable|37,999,565|32,936,900|
|Other|22,416,098|32,453,567|
|Total|688,773,399|509,226,395|

 7.25.2Other significantaccounts payableaged more than oneyear
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Causeofunpaymentorcarry-over|
|BeijingQinglangEcologicalAgricultureTechnologyDevelopmentCo.,Ltd.|18,630,431|Theproceduresforcapitalincreasehaven’tbeencompleted|
|BeijingQinglangEcologicalAgricultureTechnologyDevelopmentCo.,Ltd.|12,092,414|Thecontractingfesshaven’tbeensettled|
|YantaiDe’anInvestmentCo.,Ltd.|3,892,205|Theproceduresforcapitalincreasehaven’tbeencompleted|
|YantaiDe’anInvestmentCo.,Ltd.|4,533,932|Thecontractingfesshaven’tbeensettled|
|Total|39,148,982|--|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.26Non-currentliabilities duewithinoneyear
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Long-termloansduewithinoneyear|133,174,814|156,335,647|
|Total|133,174,814|156,335,647|

 7.27Other currentliabilities
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Deferredincome|11,181,873|11,241,873|
|Total|11,181,873|11,241,873|

 7.28Long-term loans
7.28.1Classification oflong-term loans
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Pledgeloan|||
|Mortgageloan|13,305,171|4,817,793|
|Guaranteedloan|||
|Fiduciaryloan|83,506,868|66,868,836|
|Total|96,812,039|71,686,629|

 Description oftheclassification oflong-term loans:
|||||
|-|-|-|-|
|Item|Endingbalance|Long-termloansduewithinoneyear|Long-termloansdueoveroneyear|
|Pledgeloan|129,914,400|129,914,400||
|Mortgageloan|13,373,360|68,189|13,305,171|
|Guaranteedloan||||
|Fiduciaryloan|86,699,093|3,192,225|83,506,868|
|Total|229,986,853|133,174,814|96,812,039|

 As at June 30, 2016, the mortgage loan referred to the loan of EUR 1,813,337 (equivalent to RMB
13,373,360 Yuan) borrowed from BANCO POPULARESPAÑOL SA by Atrio Group which
mortgaged its fixed assets of EUR 3,873,099 (equivalent to RMB28,564,102Yuan).
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. As at June 30, 2016, the pledge loan referred to the loan of HKD 152,000,000 (equivalent to RMB 129,914,400 Yuan) that the Company pledged the bank deposit of RMB 125,000,000 Yuan in HSBC Bank (China) Co., Ltd. Qingdao Branch. This loan is valid from July 4, 2014to July 3, 2016, and the interest rate is1.95% higher than theHong Kong interbank benchmark interest rate for three months, which shall be paid quarterly. As at June 30, 2016, the interest rate of this pledge loan was2.8603%.
7.29Deferred income
Unit:Yuan
|||||||
|-|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|Formingreason|
|Governmentallowance|81,078,284|200,000|5,723,603|75,554,681||
|Minus:Thoseincludedincurrentliabilities|11,241,873||60,000|11,181,873|--|
|Non-currentliabilities|69,836,411|200,000|5,663,603|64,372,808|--|

Projects related to governmentallowance
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
|Itemofliabilities|Beginningbalance|Amountofsubsidynewlyincreasedinthisperiod|Amountincludedinnon-operatingrevenueinthisperiod|Otherchanges|Endingbalance|Relatedtoassets/income|
|TransferredfundbyMiyunCountyCommitteePropagandaDepartment|2,666,835||444,473||2,222,362|Relatedtoassets|
|Grapebulkwinebrewingproject|7,609,243||717,437||6,891,806|Relatedtoassets|
|RewardofinvestmentinfixedassetsofShiheziChateauProject|13,836,600||1,140,000||12,696,600|Relatedtoassets|
|IndustrialrevitalizationandtechnicaltransformationprojectinXinjiang|19,908,000||711,000||19,197,000|Relatedtoassets|
|Industrialrevitalizationand|7,676,000||1,694,500||5,981,500|Relatedtoassets|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Itemofliabilities|Beginningbalance|Amountofsubsidynewlyincreasedinthisperiod|Amountincludedinnon-operatingrevenueinthisperiod|Otherchanges|Endingbalance|Relatedtoassets/income|
|technicaltransformationprojectinNingxia|||||||
|Subsidypaymentforwinegrapes|470,000||||470,000|Relatedtoincome|
|Modernagriculture-producedgrapedevelopmentsubsidy|324,000||||324,000|Relatedtoincome|
|SpecialfundforWuyouyixinindustrialcluster|60,000||30,000||30,000|Relatedtoassets|
|Subsidyforagriculturalscience|822,000||||822,000|Relatedtoincome|
|(Huanren)wine-makingproductioncapacityconstructionproject|4,000,000||||4,000,000|Relatedtoassets|
|Electronictraceabilitysystemprojectofwine|4,526,419||333,527||4,192,892|Relatedtoassets|
|Wineindustrydevelopmentproject|930,000||||930,000|Relatedtoassets|
|Peninsulablueeconomiczoneconstructionproject|10,000,000||||10,000,000|Relatedtoassets|
|ScientificresearchfundsubsidyofNational863Plan|59,890||||59,890|Relatedtoincome|
|Technicaltransformationprojectofinformation-basedsystemconstructionengineering|4,640,000||290,000||4,350,000|Relatedtoassets|
|SubsidyforprojectintegratingITapplicationwithindustrialization|28,800||||28,800|Relatedtoincome|
|Cross-bordere-commerceproject|1,660,497||88,800||1,571,697|Relatedtoincome|
|Redwinephenolicsubstanceresearchproject|300,000||4,399||295,601|Relatedtoincome|
|Grapebaseconstructionproject|1,560,000||260,000||1,300,000|Relatedtoassets|
|Waterpollutioncontrol project||200,000|9,467||190,533|Relatedtoassets|
|Total|81,078,284|200,000|5,723,603||75,554,681||
|Minus:Thoseincludedincurrentliabilities|11,241,873||||11,181,873||
|Non-currentliabilities|69,836,411||||64,372,808|--|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.30Other non-currentliabilities
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Employeebenefitspayable|4,047,476|4,047,476|
|Total|4,047,476|4,047,476|

 7.31Sharecapital
Unit: Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Beginningbalance|Increaseordecrease(+,-)inthisperiod|||||Endingbalance|
|||Newlyissuedshares|Allocatedshares|Sharetransferredfromaccumulationfund|Other|Subtotal||
|Totalshares|685,464,000||||||685,464,000|

 7.32Capital reserves
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|
|Capitalpremium(Sharecapitalpremium)|560,038,853|||560,038,853|
|Othercapitalreserves|5,916,588|||5,916,588|
|Total|565,955,441|||565,955,441|

 7.33Other comprehensive income
Unit:Yuan
|||||
|-|-|-|-|
|Item|Beginning|Amountincurredinthisperiod|Ending|

 balance balance
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|||Amountincurredbeforeincometaxinthisperiod|Minus:profitorlossinthisperiodtransferredfromothercomprehensiveincomebefore|Minus:incometaxexpenses|Attributabletoparentcompanyaftertax|Attributabletominorityshareholdersaftertax||
|1.Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater||||||||
|Including:changeinnetliabilitiesandnetassetsfromrecalculateddefinedbenefitplan||||||||
|Shareenjoyedinothercomprehensiveincomenottobereclassifiedintoprofitandlossininvestedunitunderequitylaw||||||||
|2.Othercomprehensiveincometobereclassifiedintoprofitandlosslater|-10,442,512|6,701,754|||6,249,919|451,835|-4,192,593|
|Including:shareenjoyedinothercomprehensiveincometobereclassifiedintoprofitandlossininvestedunitunderequitylaw||||||||
|Profitandlossfromchangesinfairvalueoffinancialassetsforsale||||||||
|Profitandlossfromreclassificationofheld-to-maturityinvestmentintofairvalueoffinancialassetsforsale||||||||
|Effectivepartofprofitandlossofcash-flowhedge||||||||
|DifferenceintranslationofForeignCurrencyFinancialStatement|-10,442,512|6,701,754|||6,249,919|451,835|-4,192,593|
|Totalothercomprehensiveincome|-10,442,512|6,701,754|||6,249,919|451,835|-4,192,593|

7.34Surplus reserves
Unit: Yuan
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|
|Legalsurplusreserves|342,732,000|||342,732,000|
|Freesurplusreserves|||||
|Reservefund|||||
|Enterpriseexpansionfund|||||
|Other|||||
|Total|342,732,000|||342,732,000|

 7.35Undistributed profit
Unit: Yuan
||||
|-|-|-|
|Item|Thisperiod|Priorperiod|
|Undistributedprofitattheendofpriorperiodbeforeadjustment|5,980,390,074|5,251,920,374|
|TotalUndistributedprofitatthebeginningoftheperiodbeforeadjustment(increaselistedwith+,anddecreaselistedwith-)|||
|Undistributedprofitatthebeginningoftheperiodafteradjustment|5,980,390,074|5,251,920,374|
|Plus:Netprofitforowneroftheparentcompany|695,021,847|1,030,073,860|
|Minus:Drawnlegalsurplus|||
|Drawnfreesurplus|||
|Drawncommonriskprovision|||
|Commondividendpayable||301,604,160|
|Commondividendtransferredtosharecapital|||
|Undistributedprofitattheendofperiod|6,675,411,921|5,980,390,074|

 7.36Operating income andcost
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Amountincurredinthisperiod||Amountincurredinpriorperiod||
||Income|Cost|Income|Cost|
|Mainbusiness|2,748,285,416|899,973,878|2,822,557,981|929,890,756|
|Otherbusiness|4,747,383|2,760,226|3,235,269|2,631,987|
|Total|2,753,032,799|902,734,104|2,825,793,250|932,522,743|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.37Business taxes andsurcharges
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Consumptiontax|105,763,800|84,797,329|
|BusinessTax|1,175,187|1,518,690|
|Urbanmaintenanceandconstructiontax|24,721,309|28,968,941|
|Educationsurcharges|18,089,897|15,286,114|
|Other|3,331,599|10,040,014|
|Total|153,081,792|140,611,088|

 7.38Selling expenses
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Advertisingexpenses|332,116,022|360,539,291|
|Transportation&handlingexpenses|66,063,407|65,691,087|
|Trademarkusageexpenses|46,273,367|50,302,290|
|Storageandleaseexpenses|39,026,546|36,943,556|
|Employeeremunerations|104,719,946|92,074,479|
|Travelexpenses|11,904,193|11,066,307|
|Other|50,633,753|36,808,506|
|Total|650,737,234|653,425,516|

 7.39Administrative expenses
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Employeeremunerations|42,548,604|42,052,514|
|Rentalexpenses|4,259,474|4,284,471|
|Depreciationexpenses|21,005,970|18,919,997|
|Amortizationexpenses|7,782,091|5,652,361|
|Officeexpenses|8,197,736|7,217,464|
|Travelexpenses|2,312,625|2,280,457|
|Businessentertainmentexpenses|2,639,867|3,221,229|
|Buildingtax,stampduty&othertaxes|10,233,687|10,197,817|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Repairexpenses|5,623,236|5,202,754|
|Contractingexpenses|9,241,885|9,231,363|
|Other|8,850,670|11,509,913|
|Total|122,695,845|119,770,340|

 7.40Financialexpenses
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Interestexpenditure|15,830,699|11,180,635|
|Minus:Interestincome|7,189,121|10,172,582|
|Plus:Commissioncharges|859,954|655,685|
|Exchangegainorloss|1,486,701|-5,544,641|
|Total|10,988,233|-3,880,903|

 7.41Non-operating income
Unit: Yuan
|||||
|-|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|Amountincludedinthecurrentnon-recurringprofits/losses|
|Totalgainsondisposalofnon-currentassets|94,567|2,985|94,567|
|Including:Gainsondisposaloffixedassets|94,567|2,985|94,567|
|Gainsondisposalofintangibleassets||||
|Gainsondebtrecombination||||
|Gainsonexchangeofnon-monetaryassets||||
|Grainsondonations||||
|Governmentallowance|18,145,874|6,527,952|18,145,874|
|Other|3,693,085|2,265,897|3,693,085|
|Total|21,933,526|8,796,834|21,933,526|

 Government allowance included in thecurrent profits/losses:
Unit: Yuan
|||||
|-|-|-|-|
|Itemofallowance|Amountincurredinthisperiod|Amountincurredinpriorperiod|Relatedtoassets/income|
|Fundstosupportmajorprojects|3,567,410|3,942,973|Relatedtoassets|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Fundstosupportsmallandmedium-sizedEnterprises|2,062,994|1,508,949|Relatedtoassets|
|Taxreturns|12,116,257||Relatedtoincome|
|Other|399,213|1,076,030|Relatedtoincome|
|Total|18,145,874|6,527,952|--|

7.42Non-operating expenses
Unit: Yuan
|||||
|-|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|Amountincludedinthecurrentnon-recurringprofits/losses|
|Totallossondisposalof|110,052|1,564|110,052|
|non-currentassetsIncluding:Lossondisposaloffixedassets|110,052|1,564|110,052|
|Lossondisposalofintangibleassets||||
|Lossondebtrecombination||||
|Lossonexchangeofnon-monetaryassets||||
|Donation|15,000|303,000|15,000|
|Fine,penaltyandoverduefinepaidduetoviolationoflawsand|165,589|36,021|165,589|
|administrativeregulationsOther|53,135|13,366|53,135|
|Total|343,776|353,951|343,776|

 7.43Income tax expenses
7.43.1Listofincome tax expenses
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Currentincometaxexpenses|196,893,915|213,682,126|
|Deferredincometaxexpenses|41,821,566|32,044,975|
|Total|238,715,481|245,727,101|

 7.43.2Adjustment process ofaccounting profitandincometax expenses
Unit: Yuan
|||
|-|-|
|Item|Amountincurredinthisperiod|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||
|-|-|
|Totalprofit|934,385,341|
|Incometaxexpensescalculatedaccordingtothelegal/applicabletaxrate|233,596,335|
|Influenceofdifferenttaxratesapplicabletosubsidiary|-3,875,421.75|
|Influenceofincometaxinthetermbeforeadjustment||
|Influenceofnontaxableincome||
|Influenceofnon-deductiblecosts,expensesandlosses|2,170,767|
|Influenceofdeductiblelossfromuseofunconfirmeddeferredincometaxassetsinpriorperiod||
|Influenceofdeductibletemporarydifferenceordeductiblelossofunconfirmeddeferredincometaxassetsinthisperiod|6,823,801|
|Incometaxexpense|238,715,481|

 7.44Other comprehensive income
See details inNote 33.
7.45Items of cashflowstatement
7.45.1Othercash received related to operating activities
Unit:Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Governmentallowanceincome|506,015|4,518,193|
|Other|5,457,993|3,694,770|
|Withdrawalofcashdepositfornotespayable|21,870,000||
|Total|27,834,008|8,212,963|

 7.45.2Othercash paidrelated to operating activities
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Sellingexpenses|403,264,891|349,236,795|
|Administrativeexpenses|37,642,759|35,679,002|
|Other|1,595,101|5,414,680|
|Total|442,502,751|390,330,477|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 7.45.3Other cash paid related to financial activities
Unit: Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|R&DCompany’long-termloanspledgedbyfixed-termdeposits|20,000,000||
|Total|20,000,000||

7.46Supplementary information to cash flowstatement
7.46.1Supplementary information to cash flowstatement
Unit: Yuan
||||
|-|-|-|
|Supplementarymaterials|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|1.Cashflowsfromoperatingactivitiescalculatedbyadjustingthenetprofit:|--|--|
|Netprofit|695,669,860|746,060,248|
|Plus:Provisionforimpairmentofassets|||
|Depreciationoffixedassets,oil-and-gasassetsandproductivebiologicalassets|91,227,146|76,223,958|
|Intangibleassetsamortization|6,939,854|5,705,246|
|Amortizationoflongtermprepaidexpenses|14,029,121|10,637,506|
|Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(profitlistedwith“－”)|15,485|-1,421|
|Lossesonretirementoffixedassets(profitlistedwith“－”)|||
|Lossesonfairvaluechange(profitlistedwith“－”)|||
|Financialcosts(profitlistedwith“－”)|11,808,339|2,219,651|
|Investmentlosses(profitlistedwith“－”)|||
|Decreaseindeferredincometaxassets(increaselistedwith“-”)|42,610,501|32,098,120|
|Increaseofdeferredincometaxliabilities(decreaselistedwith“－”)|-788,935|-53,145|
|Decreaseininventories(increaselistedwith“-”)|413,879,818|593,980,807|
|Decreaseinoperatingreceivables(increaselistedwith“-”)|-395,702,109|-290,154,233|
|Increaseinoperatingpayable(decreaselistedwith“-”)|-196,940,711|-249,553,677|
|Other|||
|Netcashflowsfromoperatingactivities|682,748,369|927,163,060|
|2.Significantinvestmentandfinancingactivitiesnot|--|--|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Supplementarymaterials|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|involvingcashdepositandwithdrawal:|||
|Debttransferredintoassets|||
|Convertiblecorporatebondduewithin1year|||
|Fixedassetsunderfinancinglease|||
|3.Netchangesofcashandcashequivalent:|--|--|
|Endingbalanceofcash|1,643,935,054|1,431,026,523|
|Minus:Beginningbalanceofcash|1,092,241,661|960,472,274|
|Plus:Endingbalanceofcashequivalent|||
|Minus:Beginningbalanceofcashequivalent|||
|Netincreaseamountofcashandcashequivalent|551,693,393|470,554,249|

 7.46.2Net cash paidforacquiringsubsidiaries inthis period
Unit: Yuan
|||
|-|-|
||Amount|
|Cashorcashequivalentspaidforbusinessmergerinthisperiod|764,213|
|Including:|--|
|Mirefleurs|764,213|
|Minus:Cashorcashequivalentsheldbythesubsidiariesonthepurchasingdate|1,777|
|Including:|--|
|Mirefleurs|1,777|
|Plus:Cashorcashequivalentspaidforbusinessmergerinpreviousterms||
|Including:|--|
|Netcashpaidforacquiringsubsidiaries|762,436|

 7.46.3Composition ofcash andcash equivalents
Unit: Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|1.Cash|1,643,935,054|1,431,026,523|
|Including:Cashonhand|189,184|484,571|
|Bankdepositsondemand|1,643,745,870|1,430,541,952|
|Othermonetarycapitalondemand|||
|Duefromcentralbankavailableforpayment|||
|Duefromtheindustry|||
|Inter-banklending|||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|2.Cashequivalents|||
|Including:Bondinvestmentduewithinthreemonths|||
|3.Balanceofcashandcashequivalentsattheendofperiod|1,643,935,054|1,431,026,523|
|Including: restricted use of parent company or subsidiariesinthegroup|||

7.47Assets with ownershiporuserightrestrictions
Unit: Yuan
||||
|-|-|-|
|Item|Endingbookvalue|Reasonforrestriction|
|Monetarycapital|182,069,398|Loancashdeposit,housingfundandguarantymoneyfordepositinunitcard|
|Notesreceivable|||
|Inventory|||
|Fixedassets|28,564,102|Mortgageloan|
|Intangibleassets|||
|Accountsreceivable|26,671,881|Mortgageloan|
|Total|237,305,381|--|

7.48Foreign currency monetary items
7.48.1Foreign currency monetary items
Unit: Yuan
|||||
|-|-|-|-|
|Item|Endingforeigncurrencybalance|Translationexchangerate|EndingconvertedRMBbalance|
|Long-term loans duewithinoneyear|--|--|129,914,400|
|Including:USD||||
|EUR||||
|HKD|152,000,000|0.8547|129,914,400|
|Long-termloans|--|--|44,250,000|
|Including:USD||||
|EUR|6,000,000|7.375|44,250,000|
|HKD||||

7.48.2Overseas operational entities
The currency adopted by the overseas subsidiaries of the Company according to the main economic
environment where the operation is located shall be chosen as the recording currency.Atrio Group
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. and Francs Champs Participations SAS (“Francs Champs”) both use EUR as the recording currency, whichdidn’t haveforeign currency assets and liabilities at theend ofthisperiod.
8.Changes inscope ofconsolidation
8.1Business merger undernon-common control
8.1.1Businessmergerundernon-commoncontrolinthisperiod
Unit: Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Nameofthepurchased|Timeofequityacquisition|Costofequityacquisition|Shareholdingratio|Wayofequityacquisition|Purchasingdate|Determinationbasisofthepurchasingdate|Incomeofthepurchasedfromthepurchasingdatetotheendofthisperiod|Netprofitofthepurchasedfromthepurchasingdatetotheendofthisperiod|
|Mirefleurs|2016.01.01|23,331,010|90%|Purchase|2016.01.01|Paymentcompletedwithacquisitionofequity|525,335|-212,461|

Other description:
According to the Equity Transfer Contract signed between Francs Champs Participations SAS (hereinafter referred to as “Francs Champs”), one wholly-owned subsidiary of the Company, and France Chateau Castel Company, Francs Champs purchased90% of the shares held by Chateau Castel in Societe Civile Agricole du Chateau de Mirefleurs (“Mirefleurs”) with the cash of EUR 3.33Million(equivalent to RMB2,331,010Yuan).
8.1.2Combined costand goodwill
Unit: Yuan
|||
|-|-|
|Combinedcost|Mirefleurs|
|--Cash|23,331,010|
|--Fairvalueofthenon-cashassets||
|--Fairvalueoftheissuedorassumeddebts||
|--Fairvalueoftheissuedequitysecurities||
|--Fairvalueofthecontingentconsideration||
|--Fairvalueofthestockequityheldbeforethepurchasingdateonthepurchasingdate||
|--Other||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||
|-|-|
|Combinedcost|Mirefleurs|
|Totalcombinedcost|23,331,010|
|Minus:Fairvalueshareoftheacquirednetidentifiableassets|9,348,857|
|Amountofthesharethatthegoodwill/combinedcostislessthanthefairvalueofthenetidentifiableassets|13,982,153|

8.1.3Identifiableassetsandliabilitiesofthepurchasedonthepurchasingdate
Unit: Yuan
||||
|-|-|-|
|Item|Mirefleurs||
||Fairvalueonthepurchasingdate|Bookvalueonthepurchasingdate|
|Assets:|||
|Monetarycapital|1,777|1,777|
|Accountsreceivable|65,652|65,652|
|Inventory|9,925,906|9,925,906|
|Fixedassets|8,043,320|8,043,320|
|Intangibleassets|2,486|2,486|
|Biologicalassets|1,768,441|1,768,441|
|Totalassets|19,807,582|19,807,582|
|Liabilities:|||
|Loans|1,108,029|1,108,029|
|Payables|8,311,934|8,311,934|
|Deferredtaxliabilities|||
|Totalliabilities|9,419,963|9,419,963|
|Netassets|10,387,619|10,387,619|
|Minus:Minorityequity|1,038,762|1,038,762|
|Netassetsacquired|9,348,857|9,348,857|

 9.Equity in otherentities
9.1Equity in thesubsidiaries
9.1.1Constitution ofenterprisegroup
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||
|XinjiangTianzhu(a)|ShiheziCity,XinjiangUygurAutonomousRegion,China|ShiheziCity,XinjiangUygurAutonomousRegion,China|Manufacturingindustry|60%||Acquiredfromabusinesscombinationundernon-commoncontrol|
|FrancsChampsParticipationsSAS|Cognac,France|Cognac,France|Trading|100%||Acquiredfromabusinesscombinationundernon-commoncontrol|
|AtrioGroup|Navarra,Spain|Navarra,Spain|Sales|75%||Acquiredfromabusinesscombinationundernon-commoncontrol|
|Mirefleurs|Bordeaux,France|Bordeaux,France|Winemanufacturing||90%|Acquiredfromabusinesscombinationundernon-commoncontrol|
|BeijingChangyuWineMarketingCo.,Ltd.(“BeijingMarketing”)|BeijingCity,China|BeijingCity,China|Sales|100%||Acquiredbyestablishmentorinvestment|
|YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Manufacturingindustry|100%||Acquiredbyestablishmentorinvestment|
|YantaiChateauChangyu-CastelCo.,Ltd.(“ChateauChangyu”)(b)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Manufacturingindustry|70%||Acquiredbyestablishmentorinvestment|
|Changyu(Jingyang)PioneerWineCo.,Ltd.(“JingyangWine”)|XianyangCity,ShaanxiProvince,China|XianyangCity,ShaanxiProvince,China|Manufacturingindustry|90%|10%|Acquiredbyestablishmentorinvestment|
|YantaiChangyuWineSalesCo.,Ltd.(“SalesCompany”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Sales|100%||Acquiredbyestablishmentorinvestment|
|LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd.(“LangfangCastel”)(c)|LangfangCity,HebeiProvince,China|LangfangCity,HebeiProvince,China|Manufacturingindustry|39%|10%|Acquiredbyestablishmentorinvestment|
|Changyu(Jingyang)PioneerWineSalesCo.,Ltd.(“JingyangSales”)|XianyangCity,ShaanxiProvince,China|XianyangCity,ShaanxiProvince,China|Sales|10%|90%|Acquiredbyestablishmentorinvestment|
|LangfangChangyuPioneerWineSalesCo.,Ltd.(“LangfangSales”)|LangfangCity,HebeiProvince,China|LangfangCity,HebeiProvince,China|Sales|10%|90%|Acquiredbyestablishmentorinvestment|
|ShanghaiChangyuWineMarketingCo.,Ltd.(“ShanghaiMarketing”)|ShanghaiCity,China|ShanghaiCity,China|Sales|30%|70%|Acquiredbyestablishmentorinvestment|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||
|BeijingChangyuAFIPEco-agricultureDevelopmentCo.,Ltd.(“Eco-agricultureDevelopment”)|MiyunCounty,BeijingCity,China|MiyunCounty,BeijingCity,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|BeijingChangyuAFIPWineChateauCo.,Ltd.(“BeijingChateau”)(d)|BeijingCity,China|BeijingCity,China|Manufacturingindustry|70%||Acquiredbyestablishmentorinvestment|
|YantaiChangyuWineSalesCo.,Ltd.(“WineSales”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Sales|90%|10%|Acquiredbyestablishmentorinvestment|
|YantaiChangyuPioneerInternationalWineCo.,Ltd.(“PioneerInternational”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Sales|70%|30%|Acquiredbyestablishmentorinvestment|
|HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”)|HangzhouCity,ZhejiangProvince,China|HangzhouCity,ZhejiangProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|NingxiaGrowing|YinchuanCity,NingxiaHuiAutonomousRegion,China|YinchuanCity,NingxiaHuiAutonomousRegion,China|Plantingindustry|100%||Acquiredbyestablishmentorinvestment|
|HuanrenChangyuNationalWineSalesCo.,Ltd.(“NationalWine”)|BenxiCity,LiaoningProvince,China|BenxiCity,LiaoningProvince,China|Sales|100%||Acquiredbyestablishmentorinvestment|
|LiaoningChangyuIcewineChateauCo.,Ltd.(“IcewineChateau”)(e)|BenxiCity,LiaoningProvince,China|BenxiCity,LiaoningProvince,China|Manufacturingindustry|51%||Acquiredbyestablishmentorinvestment|
|YantaiDevelopmentZoneChangyuTradingCo.,Ltd.(“DevelopmentZoneTrading”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ShenzhenChangyuWineMarketingCo.,Ltd.(“ShenzhenMarketing”)|ShenzhenCity,GuangdongProvince,China|ShenzhenCity,GuangdongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|YantaiFushanDistrictChangyuTradingCo.,Ltd.(“FushanTrading”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|BeijingChangyuAFIPInternationalConferenceCenter(“ConferenceCenter”)|MiyunCounty,BeijingCity,China|MiyunCounty,BeijingCity,China|Serviceindustry||100%|Acquiredbyestablishmentorinvestment|
|BeijingChangyuAFIP|MiyunCounty,BeijingCity,|MiyunCounty,BeijingCity,|Tourist||100%|Acquiredbyestablishment|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||
|TourismandCultureCo.,Ltd.(“AFIPTourism”)|China|China|industry|||orinvestment|
|Changyu(Ningxia)PioneerWineCo.,Ltd.(“NingxiaWine”)|YinchuanCity,NingxiaHuiAutonomousRegion,China|YinchuanCity,NingxiaHuiAutonomousRegion,China|Manufacturingindustry|100%||Acquiredbyestablishmentorinvestment|
|YantaiChangyuTinlotChateauCo.,Ltd.(“TinlotChateau”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Prepackagedfoodwholesale|65%|35%|Acquiredbyestablishmentorinvestment|
|Changyu(Qingtongxia)WineSalesCo.,Ltd.(“QingtongxiaSales”)|QingtongxiaCity,NingxiaHuiAutonomousRegion,China|QingtongxiaCity,NingxiaHuiAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ShiheziChateau|ShiheziCity,XinjiangUygurAutonomousRegion,China|ShiheziCity,XinjiangUygurAutonomousRegion,China|Manufacturingindustry|100%||Acquiredbyestablishmentorinvestment|
|ChateauChangyuMoserXVNingxiaCo.,Ltd.(“NingxiaChateau”)|YinchuanCity,NingxiaHuiAutonomousRegion,China|YinchuanCity,NingxiaHuiAutonomousRegion,China|Manufacturingindustry|100%||Acquiredbyestablishmentorinvestment|
|ChateauChangyuRenaShaanxiCo.,Ltd.(“Chang’anChateau”)|XianyangCity,ShaanxiProvince,China|XianyangCity,ShaanxiProvince,China|Manufacturingindustry|100%||Acquiredbyestablishmentorinvestment|
|YantaiChangyuWineResearch,Development&ManufactureCo.,Ltd.(“R&DCompany”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Manufacturingindustry|100%||Acquiredbyestablishmentorinvestment|
|Changyu(Huanren)PioneerWineCo.,Ltd.(“HuanrenWine”)|BenxiCity,LiaoningProvince,China|BenxiCity,LiaoningProvince,China|Winemakingprojectestablishment|100%||Acquiredbyestablishmentorinvestment|
|XinjiangChangyuWineSalesCo.,Ltd.(“XinjiangSales”)|ShiheziCity,XinjiangUygurAutonomousRegion,China|ShiheziCity,XinjiangUygurAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|NingxiaChangyuTradingCo.,Ltd.(“NingxiaTrading”)|YinchuanCity,NingxiaHuiAutonomousRegion,China|YinchuanCity,NingxiaHuiAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ShaanxiChangyuRenaWineSalesCo.,Ltd.(“ShaanxiSales”)|XianyangCity,ShaanxiProvince,China|XianyangCity,ShaanxiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|PenglaiChangyuWineSalesCo.,Ltd.(“PenglaiWine”)|PenglaiCity,ShandongProvince,China|PenglaiCity,ShandongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|LaizhouChangyuWineSalesCo.,Ltd.(“LaizhouSales”)|LaizhouCity,ShandongProvince,China|LaizhouCity,ShandongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||
|LanzhouChangyuWineMarketingCo.,Ltd.(“LanzhouMarketing”)|LanzhouCity,GansuProvince,China|LanzhouCity,GansuProvince,China|Sales|100%||Acquiredbyestablishmentorinvestment|
|BeijingChangyuTradingCo.,Ltd.(“BeijingTrading”)|BeijingCity,China|BeijingCity,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|TianjinChangyuPioneerWineSalesCo.,Ltd.(“TianjinPioneer”)|TianjinCity,China|TianjinCity,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|FuzhouChangyuPioneerWineCo.,Ltd.(“FuzhouPioneer”)|FuzhouCity,FujianProvince,China|FuzhouCity,FujianProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|NanjingChangyuPioneerWineCo.,Ltd.(“NanjingPioneer”)|NanjingCity,JiangsuProvince,China|NanjingCity,JiangsuProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|XianyangChangyuPioneerWineSalesCo.,Ltd.(“XianyangPioneer”)|XianyangCity,ShaanxiProvince,China|XianyangCity,ShaanxiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ShenyangChangyuPioneerWineCo.,Ltd.(“ShenyangPioneer”)|ShenyangCity,LiaoningProvince,China|ShenyangCity,LiaoningProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|JinanChangyuPioneerWineCo.,Ltd.(“JinanPioneer”)|JinanCity,ShandongProvince,China|JinanCity,ShandongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ShanghaiChangyuPioneerWineCo.,Ltd.(“ShanghaiPioneer”)|ShanghaiCity,China|ShanghaiCity,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|FuzhouChangyuPioneerWineCo.,Ltd.(“FuzhouPioneer”)|FuzhouCity,JiangxiProvince,China|FuzhouCity,JiangxiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ShijiazhuangChangyuPioneerWineSalesCo.,Ltd.(“ShijiazhuangPioneer”)|ShijiazhuangCity,HebeiProvince,China|ShijiazhuangCity,HebeiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|HangzhouYuzefengTradingCo.,Ltd.(“HangzhouYuzefeng”)|HangzhouCity,ZhejiangProvince,China|HangzhouCity,ZhejiangProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|JilinChangyuPioneerWineCo.,Ltd.(“JilinPioneer”)|ChangchunCity,JilinProvince,China|ChangchunCity,JilinProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|BeijingChangyuPioneer|BeijingCity,China|BeijingCity,China|Sales||100%|Acquiredbyestablishment|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||
|WineSalesCo.,Ltd.(“BeijingPioneer”)||||||orinvestment|
|HarbinChangyuPioneerWineSalesCo.,Ltd.(“HarbinPioneer”)|HarbinCity,HeilongjiangProvince,China|HarbinCity,HeilongjiangProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|HunanChangyuPioneerWineCo.,Ltd.(“HunanPioneer”)|ChangshaCity,HunanProvince,China|ChangshaCity,HunanProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|YinchuanChangyuPioneerWineCo.,Ltd.(“YinchuanPioneer”)|YinchuanCity,NingxiaHuiAutonomousRegion,China|YinchuanCity,NingxiaHuiAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|KunmingChangyuPioneerWineCo.,Ltd.(“KunmingPioneer”)|KunmingCity,YunnanProvince,China|KunmingCity,YunnanProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ChongqingChangyuPioneerWineSalesCo.,Ltd.(“ChongqingPioneer”)|ChongqingCity,China|ChongqingCity,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ZhengzhouChangyuPioneerWineCo.,Ltd.(“ZhengzhouPioneer”)|ZhengzhouCity,HenanProvince,China|ZhengzhouCity,HenanProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|WuhanChangyuPioneerWineCo.,Ltd.(“WuhanPioneer”)|WuhanCity,HubeiProvince,China|WuhanCity,HubeiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|TaiyuanChangyuPioneerWineCo.,Ltd.(“TaiyuanPioneer”)|TaiyuanCity,ShanxiProvince,China|TaiyuanCity,ShanxiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|HohhotChangyuPioneerWineCo.,Ltd.(“HohhotPioneer”)|HohhotCity,InnerMongoliaAutonomousRegion,China|HohhotCity,InnerMongoliaAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|ChengduChangyuPioneerWineCo.,Ltd.(“ChengduPioneer”)|ChengduCity,SichuanProvince,China|ChengduCity,SichuanProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|NanningChangyuPioneerWineCo.,Ltd.(“NanningPioneer”)|NanningCity,GuangxiZhuangAutonomousRegion,China|NanningCity,GuangxiZhuangAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|LanzhouChangyuPioneerWineCo.,Ltd.(“Lanzhou|LanzhouCity,GansuProvince,China|LanzhouCity,GansuProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Principalbusinesslocation|Registrationplace|Businessnature|Proportionofshareholding||Acquisitionmode|
|||||Direct|Indirect||
|Pioneer”)|||||||
|YantaiRoullet-FransacImportedWineSalesCo.,Ltd.(“YantaiRoullet-Fransac”)|YantaiCity,ShandongProvince,China|YantaiCity,ShandongProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|HefeiChangyuPioneerWineCo.,Ltd.(“HefeiPioneer”)|HefeiCity,AnhuiProvince,China|HefeiCity,AnhuiProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|UrumchiChangyuPioneerWineCo.,Ltd.(“UrumchiPioneer”)|UrumchiCity,XinjiangUygurAutonomousRegion,China|UrumchiCity,XinjiangUygurAutonomousRegion,China|Sales||100%|Acquiredbyestablishmentorinvestment|
|GuizhouChangyuPioneerWineCo.,Ltd.(“GuizhouPioneer”)|GuiyangCity,GuizhouProvince,China|GuiyangCity,GuizhouProvince,China|Sales||100%|Acquiredbyestablishmentorinvestment|

Explanation for difference between the proportion of shareholding and proportion of voting power in the subsidiaries:
(a) Xinjiang Tianzhu is a subsidiary of the Company obtained by merger and acquisition, whose60% of the shares are held by the Company. The Company exercises full control over the operation, investment and financing policies of Xinjiang Tianzhu by contract arrangement. The contract arrangement willterminate onDecember 31,2018.
(b) Changyu Chateau is a Sino-foreign joint venture established by the Company and a foreign investor, whose70% of the shares are held by the Company. The Company exercises full control over the operation, investment and financing policies of Changyu Chateau by contract arrangement. The contract arrangement willterminateonDecember 31,2022.
(c) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreign investor, whose49% of the shares are held by the Company and its subsidiaries. The Company exercises full control over the operation, investment and financing policies of Langfang Castel by contract arrangement.Thecontract arrangement willterminateonDecember 31,2022.
(d) Beijing Chateau is a limited liability company established by the Company and a domestic investor, whose70% of the shares are held by the Company. The Company exercises full control over the operation, investment and financing policies of Beijing Chateau by contract arrangement. The contract arrangement willterminateonSeptember 2,2019.
(e) Icewine Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor, whose51% of the shares are held by the Company. The Company exercises full control
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. over the operation, investment and financing policies of Icewine Chateau by contract arrangement. The contract arrangement willterminateat December 31,2016.
9.1.2Important non-wholly-owned subsidiaries
Unit:Yuan
||||||
|-|-|-|-|-|
|Nameofsubsidiary|Shareholdingproportionofminorityshareholders|Profit/lossattributabletominorityshareholdersinthisperiod|Dividenddeclaredtobedistributedtominorityshareholdersinthisperiod|Balanceofminorityshareholder’sinterestattheendofperiod|
|XinjiangTianzhu|40%|||56,093,912|
|AtrioGroup|25%|669,259||33,768,700|
|ChangyuChateau|30%|||12,365,016|
|LangfangCastel|51%|||22,702,522|
|BeijingChateau|30%|||35,293,868|
|IcewineChateau|49%|||33,319,062|

 Explanation for difference between the proportion of shareholding and proportion of voting power ofthe minorityshareholders in thesubsidiaries:
See details inNote 9.1.
9.1.3Main financialinformation of importantnon-wholly-ownedsubsidiaries
Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Endingbalance||||||
||Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|Totalliabilities|
|XinjiangTianzhu|98,432,365|80,498,095|178,930,460|47,768,551|5,336,114|53,104,664|
|ChangyuChateau|137,074,770|117,907,315|254,982,086|193,566,232||193,566,232|
|LangfangCastel|23,378,862|21,415,349|44,794,211|8,198,827||8,198,827|
|BeijingChateau|221,531,235|512,424,347|733,955,582|561,347,980|1,333,418|562,681,397|
|IcewineChateau|61,127,237|28,397,506|89,524,743|34,821,888|100,000|34,921,888|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Endingbalance||||||
||Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|Totalliabilities|
|AtrioGroup|256,585,879|158,172,897|414,758,775|198,016,686|81,667,290|279,683,976|

 Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Nameofsubsidiary|Beginningbalance||||||
||Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|Totalliabilities|
|XinjiangTianzhu|101,018,712|81,709,715|182,728,427|15,554,068|5,336,114|20,890,182|
|ChangyuChateau|156,538,810|118,256,609|274,795,419|191,898,436||191,898,436|
|LangfangCastel|30,867,940|22,471,694|53,339,634|7,913,957||7,913,957|
|BeijingChateau|216,643,935|523,151,845|739,795,780|588,733,969|1,777,890|590,511,859|
|IcewineChateau|43,224,419|29,322,675|72,547,094|12,623,467|100,000|12,723,467|
|AtrioGroup|277,879,914|157,297,623|435,177,537|259,625,473|44,813,493|304,438,966|

 Unit:Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Nameofsubsidiary|Amountincurredinthisperiod||||Amountincurredinpriorperiod||||
||Operatingincome|Netprofit|Totalcomprehensiveincome|Operatingcashflow|Operatingincome|Netprofit|Totalcomprehensiveincome|Operatingcashflow|
|XinjiangTianzhu|71,414,395|8,855,720|8,855,720|10,345,022|65,111,307|643,354|643,354|2,190,239|
|ChangyuChateau|25,120,685|-1,835,054|-1,835,054|16,363,694|37,153,833|787,674|787,674|-1,684,390|
|LangfangCastel|23,893,566|1,141,604|1,141,604|8,003,926|27,859,048|456,864|456,864|-1,645,940|
|BeijingChateau|96,780,881|22,140,264|22,140,264|19,711,484|75,082,711|8,118,305|8,118,305|50,443,509|
|IcewineChateau|16,400,216|-3,220,773|-3,220,773|-2,213,030|27,030,519|715,756|715,756|-4,588,284|
|AtrioGroup|138,454,701|2,677,035|4,336,228|-10,296,603|||||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 10.Risks relatedto financialinstruments
The main financial instruments of this Group include monetary capital, bills receivable, accounts receivable, interest receivable, other receivables, other non-current assets, short-term loans, bills payable, accounts payable, other payables, interest payable and long-term loans. See details of each financial instrument in Note 7. The risks related to these financial instruments and risk management policies adopted by this Group to reduce these risks are shown as follows. The management of this Group manages and monitorstheseriskexposurestoensurethattheabove-mentionedrisksarecontrolledwithinadefinedscope. This Group adopts sensitivity analysis techniques to analyze the possible influence of possible reasonable changes of risk variables on the current profit and loss andshareholders’ 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 eachvariablechangesindependently.
10.1Risk management objective andpolicy
The risk management objective of this Group is to achieve proper balance between risks and benefits, to minimize the negative influence of the risks on the business performance of this Group and to maximize theshareholders’ benefit. Based on this risk management objective, the basic risk management strategy of this Group is to determine and analyze various risks faced by this 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 withinadefinedscope.
10.1.1Marketrisk
①Foreignexchangerisk
Foreign exchange risk refers to risk of causing loss due to exchange rate fluctuation. The foreign exchange risk borne by this Group is mainly relevant to EUR and HKD, except that the overseas subsidiaries of this Group carry out purchase and sales with EUR and except for loans in EUR and HKD, other main business activities of this Group are priced and settled with RMB. As at June 30, 2016, except that the assets and
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. liabilities mentioned in the table below were the balance in EUR and HKD, the assets and liabilities of this GroupwereallthebalanceinRMB.Theforeignexchangeriskcausedbytheassetsandliabilitiesofbalance inthesecurrenciesmayexertaninfluenceonthebusinessperformanceofthisGroup.
Unit:Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Monetarycapital||151,843,602|
|Short-termloans||103,297,447|
|Long-termloansduewithinoneyear|129,914,400|127,345,600|
|Long-termloans|44,250,000|56,761,600|

 This Grouppays close attention tothe influence of exchange rate fluctuation onthe foreign exchange riskof thisGroup.ThisGrouphasnottakenanymeasurestoavoidtheforeignexchangeriskatpresent.
Sensitivityanalysisofforeignexchangerisk
Withtheothervariablesunchanged,thepre-taxinfluenceofpossiblereasonableexchangeratefluctuationoncurrentprofitandlossandshareholders’equityisasfollows:
Unit:Yuan
|||||
|-|-|-|-|
|Item|Exchangeratefluctuation|Thisyear||
|||Influenceonprofitofthisperiod|Influenceonshareholders’equity|
|HKD|5%appreciationagainstRMB|-6,495,720|-6,495,720|
|HKD|5%depreciationagainstRMB|6,495,720|6,495,720|
|EUR|5%appreciationagainstRMB|-2,212,500|-2,212,500|
|EUR|5%depreciationagainstRMB|2,212,500|2,212,500|

②Interestraterisk–riskofchangeincashflow
The risk of change in cash flow of financial instruments caused by interest rate change of this Group is mainly relevant to the monetary capital and long-term loan at floating interest rate. The policy of this Group is to maintain the floating interest rate of these loans to eliminate the risk of change in fair value of the
interestrate.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. Sensitivityanalysisofinterestraterisk
Sensitivity analysis of interest rate risk is based on the hypothesis that the change in market interest rate influencestheinterestincomeorexpenseoffinancialinstrumentsatvariablerate.
The management of this Groupthinks that the interest rate riskof deposit inbankborne bythis Groupis not significant,thereforethesensitivityanalysisofinterestrateofdepositinbankisnotdisclosedhere.
Onthebasis oftheabove-mentioned hypothesis, withthe othervariablesunchanged, thepre-taxinfluence of possible reasonable exchange rate fluctuation on current profit and loss andshareholders’ equity is as follows:
Unit:Yuan
|||||
|-|-|-|-|
|Item|Interestratechange|Thisyear||
|||Influenceonprofitofthisperiod|Influenceonshareholders’equity|
|Bankloan|Increaseby50BP|-1,305,630|-1,305,630|
|Bankloan|Decreaseby50BP|1,305,630|1,305,630|

 10.1.2Creditrisk
As at June 30, 2016, the largest credit risk exposure possibly causing the financial loss of this Group was mainly caused by the loss generated by the financial assets of this Group caused by failure of anotherparty ofthecontract in fulfillingobligations.
To lower the credit risk, this Group only trades with the recognized and reputable third party. In accordance with the policy of this Group, credit check shall be carried out for all customers requiring to adopt form of credit to trade. In addition, this Group conducts continuous monitoring on the balance of accounts receivable to ensure that this 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 this Group specially approves, this Group will not provide credit trade terms.
In addition, this Group audits the collection of each single significant account receivable on each
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. date of balance sheet to ensure that sufficient bad-debt provision is accrued for accounts unable to be collected. Therefore, the management of this Group thinks the credit risk borne by this Group is greatly reduced.
Since this 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, 2016,28.8% of accounts receivable of this Group came from top five borrowers in accounts receivable of this Group (December 31, 2015:28.4%). This Group holds no collateral orother credit enhancement for balance ofaccounts receivable.
Analysis offinancial assets with singleimpairment incurred
On the date of balance sheet, for accounts receivable of Tiantong Securities Co., Ltd. with single confirmed impairment incurred, since this company is insolvent, this Group has accrued bad-debt provision infull.
10.1.3Liquidity risk
When managing the liquidity risk, this Group reserves and monitors the cash and cash equivalents the management considers sufficient to satisfy the operation need of this Group and reduce the influence of fluctuation in cash flow. The management of this Group monitors the use of bank loans and ensures toabide bytheloan agreement.
10.1.4 Disclosure of fair value– fair value of financial assets and liabilities not measured by fair value
The management of this Group thinks that, as at June 30, 2016, the book value of financial assets and liabilities measured byamortized cost was close to thefairvalue thereof.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 11.Related parties andrelated transactions
11.1Particulars ofthe parentcompany ofthe Company
|||||||
|-|-|-|-|-|-|
|Nameofparentcompany|Registrationplace|Businessnature|Registeredcapital|ProportionofshareholdingoftheparentcompanyintheCompany|ProportionofvotingpowersoftheparentcompanyintheCompany|
|ChangyuGroupCompany|YantaiCity|Manufacturingindustry|50,000,000|50.40%|50.40%|

From January to June 2016, there was no fluctuation in registered capital of the parent company and its share ofequity interest and share ofvoting rights.
Final controlling parties of the Company are jointly controlled by four parties including Yantai Guofeng Investment Holding Co., Ltd., ILLVA Saronno Holding SpA, International Finance Corporation andYantaiYuhuaInvestment& Development Co., Ltd.
11.2Particulars ofthe subsidiaries ofthe Company
See particulars ofthesubsidiaries of theCompany inNote 9.
11.3Particulars ofother related parties
|||
|-|-|
|Nameofotherrelatedparties|RelationshipbetweenotherrelatedpartiesandtheCompany|
|YantaiChangyuWineCultureMuseumCo.,Ltd.(“WineCultureMuseum”)|Acompanycontrolledbythesameparentcompany|
|YantaiChangyuWindowofInternationalWineCityCo.Ltd.(“WindowofWineCity”)|Acompanycontrolledbythesameparentcompany|
|YantaiGodHorsePackingCo.,Ltd.(“GodHorsePacking”)|Acompanycontrolledbythesameparentcompany|
|YantaiZhongyaMedicalHealthWineCo.,Ltd.(“ZhongyaMedical”)|Acompanycontrolledbythesameparentcompany|

11.4Related transactions
11.4.1 Related transactions of purchasing and selling goods and providing and receiving services
List ofpurchasing goods/receiving services
Unit:Yuan
|||||
|-|-|-|-|
|Relatedparties|Relatedtransactions|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|GodHorsePacking|Purchasinggoods|71,912,485|82,426,894|
|ZhongyaMedical|Purchasinggoods|5,550,205|2,471,868|
|WineCultureMuseum|Purchasinggoods|4,636,495|3,487,207|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||
|-|-|-|-|
|Relatedparties|Relatedtransactions|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|WindowofWineCity|Purchasinggoods|296,652|243,761|

 List ofselling goods/providing services
Unit:Yuan
|||||
|-|-|-|-|
|Relatedparties|Relatedtransactions|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|WineCultureMuseum|Sellinggoods|7,663,340|4,186,529|
|WindowofWineCity|Sellinggoods|5,002,597|3,712,629|
|ZhongyaMedical|Sellinggoods|2,057,616|749,724|
|GodHorsePacking|Sellinggoods|772,037|27,988|

 The priceof transactions between thisGroup and therelated parties are based onthenegotiated price.
From January toJune2016,thegoods purchased from therelated parties bythe Group accounted for8.8%ofthetotal purchases oftheGroup.
From January toJune2016,thegoods sold bytheGroup tothe related parties were lower than1% ofthe totalsales oftheGroup.
11.4.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
11.4.3Leasing with related parties
The Company as aleasee:
Unit:Yuan
|||||
|-|-|-|-|
|Nameofthelessor|Typeofleasedassets|Rentrecognizedinthisperiod|Rentrecognizedinpriorperiod|
|ChangyuGroupCompany|Warehouseandofficebuilding|2,929,000|2,929,000|

 Pursuant to a lease contract dated January 1, 2012 signed between the Company and Changyu Group Company, starting from January 1, 2012, the Company may rent properties for operation purposes at a basic annual rental of RMB 5,858,000 Yuan, and the expired date is December 31, 2016. From January to June 2016, the rental expenses payable by this Group to Changyu Group Company amounted toRMB2,929,000Yuan.
11.4.4 Guarantee with related parties
Nil
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 11.4.5Inter-bank borrowing andlending ofrelated parties
Nil
11.4.6Asset transferanddebt recombination ofrelated parties
Nil
11.4.7 Otherrelated transactions
|||||
|-|-|-|-|
|Item|Note|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Trademarkusagefee|(a)|46,273,367|52,568,600|
|Patentfee|(b)|25,000|25,000|

 The priceof transactions between thisGroup and therelated parties isbased onthenegotiated price. (a)Trademark royalty contract
Pursuant to a trademark royalty contract dated May 18, 1997 signed between the Company and Changyu Group Company, starting from September 18, 1997, the Company may use certain trademark of Changyu Group Company, which has been registered with the PRC Trademark Office. An annual royalty fee at2% of theCompany’s annual specific sales is payable to Changyu Group Company. The contract is effective until the expiry of the registration of the trademark. From January to June 2016, the patent fees paid to related parties by this Group accounted for100% of the patent fees inthis Group.
(b) Patent implementation licensecontract
Pursuant to a patent implementation license contract dated May 18, 1997 signed between the Company and Changyu Group Company, starting from September 18, 1997, the Company may use the patented technologies of Changyu Group Company. The annual patent usage fee payable by the Company to Changyu Group Company was RMB 50,000 Yuan. The contract was expired on December 20, 2005. The Company renewed the contract on August 20, 2006 for 10 years. The annual patent usage fee payable by the Company to Changyu Group Company is RMB 50,000Yuan as before. From January to June 2016, the patent usage fee payable by the Company to Changyu Group Company amounted to RMB 25,000 Yuan. From January to June 2016, patent fees paid to related parties accounted for100%of thepatent fees in thisGroup.
11.5Accounts receivableandpayableoftherelated parties
11.5.1Accounts receivable
Unit:Yuan
|||||||
|-|-|-|-|-|-|
|Item|Relatedparties|Endingbalance||Beginningbalance||
|||Book|Baddebt|Bookbalance|Baddebt|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
|||||||
|-|-|-|-|-|-|
|||balance|provision||provision|
|Accountsreceivable|ZhongyaMedical|||2,240,282||
|Accountsreceivable|GodHorsePacking|||169,300||
|Accountsreceivable|WindowofWineCity|||7,812||
|Accountsreceivable|WineCultureMuseum|15,256||||

11.5.2Accounts payable
Unit:Yuan
|||||
|-|-|-|-|
|Item|Relatedparties|Endingbookbalance|Beginningbookbalance|
|Accountspayable|GodHorsePacking|28,522,179|53,735,915|
|Accountspayable|ZhongyaMedical|7,249,803|7,272,656|
|Accountspayable|WineCultureMuseum||1,928,504|
|Accountspayable|WindowofWineCity|250,353|145,861|
|Otheraccountspayable|ChangyuGroupCompany|46,095,769|86,001,287|

 12.Commitment andcontingency
12.1Significantcommitment
Unit:Yuan
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Capitalcommitment|990,490,000|1,580,280,000|

 12.2Contingency
By the balance sheet date, the Group and the Companydidn’t have any undisclosed contingency to be disclosed.
13.Matters afterbalancesheet
13.1Important non-adjustingevents
Nil
13.2Profitdistribution
Unit:Yuan
|||
|-|-|
|Profitsordividendstobedistributed|342,732,000|
|Allocatedprofitsordividendsapprovedtodeclareupondiscussion|342,732,000|

According to the decision of theShareholders’ Meeting dated May 26, 2016, based on the issued share capital of 685,464,000shares in2015, the Company allocated RMB5Yuanincash(including tax) for every
10 shares to all shareholders with the total cash dividends of RMB 342,732,000Yuan. Such cash dividends
wereissuedonJuly7,2016andJuly11,2016respectively.
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 14.Other importantmatters
Nil
15.Notes on major items in financialstatements oftheparentcompany
15.1Accountsreceivable
15.1.1Accounts receivabledisclosedby type
Unit:Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type|Endingbalance|||||Beginningbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Proportion|Amount|Accruedproportion||Amount|Proportion|Amount|Accruedproportion||
|Accountsreceivableofsignificantsingleamountandsingleaccruedbaddebtprovision|||||||||||
|Accountsreceivableaccruedbaddebtprovisionbycreditriskfeatures|||||||||||
|Accountsreceivableofinsignificantsingleamountandsingleaccruedbaddebtprovision|643,457|100%|||643,457|2,392,870|100%|||2,392,870|
|Total|643,457|100%|||643,457|2,392,870|100%|||2,392,870|

15.1.2Bad debtprovision accrued, received ortransferred backin thisperiod
The bad debt provision accrued in this period was RMB 0 Yuan; and that received or transferred back in thisperiod was RMB 0Yuan.
15.1.3Accounts receivableactually canceled afterverification in thisperiod
Nil
15.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending balance
Unit:Yuan
||||||
|-|-|-|-|-|
|Unit|RelationshipwiththeCompany|Amount|Age|Percentageintotalaccountsreceivable(%)|
|YantaiChangyuWineCultureMuseum|Otherrelatedpartyof|643,457|Within1year|100%|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. Co.,Ltd. theCompany
||||
|-|-|-|
|Total|643,457|100%|

15.1.5Accounts receivablederecognized dueto transferoffinancial assets
Nil
15.1.6Accounts receivabletransferred andincluded in assets and liabilities
Nil
15.2Otheraccountsreceivable
15.2.1Otheraccounts receivable disclosed bytype
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type|Endingbalance|||||Beginningbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Proportion|Amount|Accruedproportion||Amount|Proportion|Amount|Accruedproportion||
|Otheraccountsreceivableofsignificantsingleamountandsingleaccruedbaddebtprovision|5,989,049,441|99.8%|7,199,521|0.1%|5,981,849,920|5,727,534,401|99.8%|7,199,521|0.1%|5,720,334,880|
|Otheraccountsreceivableaccruedbaddebtprovisionbycreditriskfeatures|||||||||||
|Otheraccountsreceivableofinsignificantsingleamountandsingleaccruedbaddebtprovision|14,920,904|0.2%|||14,920,904|14,121,249|0.2%|||14,121,249|
|Total|6,003,970,345|100.0%|7,199,521|0.1%|5,996,770,824|5,741,655,650|100%|7,199,521|0.1%|5,734,456,129|

 Other accounts receivableof significant single amount and single accrued baddebt provision at the end ofperiod:
Unit:Yuan
||||||
|-|-|-|-|-|
|Otheraccountsreceivable(byunit)|Endingbalance||||
||Otheraccountsreceivable|Baddebtprovision|Accruedproportion|Reasonforaccrual|
|TiantongSecuritiesCo.,Ltd.|7,199,521|7,199,521|100%|Thiscompanyisinbankruptcyliquidation|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||
|-|-|-|-|-|
|Total|7,199,521|7,199,521|--|--|

15.2.2Bad debtprovision accrued, received ortransferred backin thisperiod
The bad debt provision accrued in this period was RMB 0 Yuan; and that received or transferred back in thisperiod was RMB 0Yuan.
15.2.3Otheraccounts receivable classifiedby nature
Unit:Yuan
||||
|-|-|-|
|Natureoffund|Endingbookbalance|Beginningbookbalance|
|Accountsreceivableofsubsidiaries|5,986,392,825|5,732,654,756|
|Excisedrawback|||
|Cashpledgeandcashdepositreceivable|645,374|103,834|
|Investmentfundreceivable|7,199,521|7,199,521|
|Other|9,732,625|1,697,539|
|Total|6,003,970,345|5,741,655,650|

 15.2.4 Otheraccounts receivable collected by the borrowerof top 5 units ranked by the ending balance
Unit:Yuan
|||||||
|-|-|-|-|-|-|
|Unit|Natureoffund|Endingbalance|Age|Percentageinthetotalendingbalanceofotheraccountsreceivable|Endingbalanceofbaddebtprovision|
|R&DCompany|Internalincomingsandoutgoings|2,195,328,502|Within3year|36.6%||
|Chang’anChateau|Internalincomingsandoutgoings|772,647,858|Within2year|12.9%||
|SalesCompany|Internalincomingsandoutgoings|662,301,514|Within1year|11.0%||
|ShiheziChateau|Internalincomingsandoutgoings|593,165,921|Within2year|9.9%||
|BeijingChateau|Internalincomingsandoutgoings|489,529,200|Within2year|8.2%||
|Total|--|4,712,972,995|--|78.5%||

15.2.5Accounts receivablerelated to government allowance
Nil
15.2.6Otheraccounts receivable derecognized dueto transferoffinancialassets
Nil
15.2.7Otheraccounts receivable transferredandincluded in assets andliabilities
Nil
2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 15.3Long-term equity investment
Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Impairmentreserve|Bookvalue|Bookbalance|Impairmentreserve|Bookvalue|
|Investmentinsubsidiaries|1,423,725,152||1,423,725,152|1,423,725,152||1,423,725,152|
|Investmentinassociatedenterprisesandjointventures|||||||
|Total|1,423,725,152||1,423,725,152|1,423,725,152||1,423,725,152|

 15.3.1Investment insubsidiaries
Unit:Yuan
||||||||
|-|-|-|-|-|-|-|
|Investedunit|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|Provisionforimpairmentinthisperiod|Endingbalanceofimpairmentprovision|
|XinjiangTianzhu(a)|60,000,000|||60,000,000|||
|KylinPackaging|23,176,063|||23,176,063|||
|ChangyuChateau(a)|28,968,100|||28,968,100|||
|PioneerInternational(c)|3,500,000|||3,500,000|||
|NingxiaGrowing|1,000,000|||1,000,000|||
|NationalWine|2,000,000|||2,000,000|||
|IcewineChateau(a)|30,440,500|||30,440,500|||
|BeijingChateau(a)|77,000,000|||77,000,000|||
|SalesCompany|7,200,000|||7,200,000|||
|LangfangSales(c)|100,000|||100,000|||
|LangfangCastel(a)|19,835,730|||19,835,730|||
|WineSales|4,500,000|||4,500,000|||
|ShanghaiMarketing(c)|300,000|||300,000|||
|BeijingMarketing|850,000|||850,000|||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||||||
|-|-|-|-|-|-|-|
|Investedunit|Beginningbalance|Increaseinthisperiod|Decreaseinthisperiod|Endingbalance|Provisionforimpairmentinthisperiod|Endingbalanceofimpairmentprovision|
|JingyangSales(c)|100,000|||100,000|||
|JingyangWine(c)|900,000|||900,000|||
|NingxiaWine|1,000,000|||1,000,000|||
|NingxiaChateau|2,000,000|||2,000,000|||
|TinlotChateau(c)|80,000,000|||80,000,000|||
|ShiheziChateau|150,000,000|||150,000,000|||
|Chang’anChateau|20,000,000|||20,000,000|||
|R&DCompany|500,000,000|||500,000,000|||
|HuanrenWine|11,000,000|||11,000,000|||
|FrancsChamps|209,706,634|||209,706,634|||
|AtrioGroup|190,148,125|||190,148,125|||
|Total|1,423,725,152|||1,423,725,152|||

15.4Operating income andoperating cost
Unit:Yuan
||||||
|-|-|-|-|-|
|Item|Amountincurredinthisperiod||Amountincurredinpriorperiod||
||Income|Cost|Income|Cost|
|Mainbusiness|648,652,597|495,598,413|681,772,322|541,216,825|
|Otherbusiness|6,646,403|5,714,186|7,280,907|7,169,011|
|Total|655,299,000|501,312,599|689,053,229|548,385,836|

 15.5Investmentincome
Unit:Yuan
||||
|-|-|-|
|Item|Amountincurredinthisperiod|Amountincurredinpriorperiod|
|Incomefromlong-termequityinvestmentbycostmethod|683,891,453|46,770,286|
|Incomefromlong-termequityinvestmentbyequitymethod|||
|Investmentincomefromdisposaloflong-termequityinvestment|||
|Investmentincomeofthefinancialassetsmeasuredattheirfairvaluesandthevariationofwhichisrecordedintothecurrent|||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|profitandlossduringtheholdingperiod|||
|Investment income gained from disposal of the financial assetsmeasured at their fair values and the variation of which isrecordedintothecurrentprofitandloss|||
|Investmentincomeofheld-to-maturityinvestmentduringtheholdingperiod|||
|Investmentincomeoffinancialassetsheldforsaleduringtheholdingperiod|||
|Investmentincomegainedfromdisposaloffinancialassetsheldforsale|||
|Gainsgeneratedfromtheremainingequityremeasuredasperfairvalueafterthelossofcontrol|||
|Total|683,891,453|46,770,286|

 16.Supplementary materials
16.1Listofnon-currentprofits/losses in thisperiod
Unit:Yuan
||||
|-|-|-|
|Item|Amount|Remark|
|Profits/lossesondisposalofnon-currentassets|-15,485||
|Taxreturn,deductionandexemptionapprovedbeyondtheauthorityorwithoutformalapprovaldocument|12,116,257||
|Government allowance included in the current profits/losses(excluding those closely related to the enterprise business andenjoyedinaccordancewiththeunifiedstandardquotaorrationofthestate)|6,029,617||
|Paymentforuseoffundsbynon-financialenterprisesincludedinthecurrentprofits/losses|||
|Incomeobtainedwhentheinvestmentcostobtainedbytheenterprisefromsubsidiaries,joint-runbusinessandjointventureislessthanthefairvalueofthenetidentifiableassetsobtainedfromtheinvestedunitswhentheinvestmentismade|||
|Profits/lossesonexchangeofnon-monetaryassets|||
|Profits/lossesonentrustingotherpeopletomakeinvestmentormanageassets|||
|Assetimpairmentprovisionaccruedduetoforcemajeuresuchas|||

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.
||||
|-|-|-|
|Item|Amount|Remark|
|naturaldisaster|||
|Profits/lossesondebtrestructuring|||
|Enterprisereorganizationexpensessuchasstaffingexpenditureandintegrationexpenses,etc.|||
|Profits/lossesonthosebeyondthefairvaluegeneratedfromtransactionswithunfairtransactionprice|||
|Currentnetprofits/lossesonsubsidiariesacquiredfromabusinesscombinationundercommoncontrolfromthebeginningtotheconsolidationdate|||
|Profits/lossesoncontingenciesirrelatedtothenormalbusinessoftheCompany|||
|Profits/lossesonchangesoffairvalueoffinancialassetsandliabilitiesheldfortrading,andinvestmentincomefromdisposaloffinancialassetsandliabilitiesheldfortradingandfinancialassetsheldforsale,excludingeffectivehedgingoperationsrelevanttothenormalbusinessoftheCompany|||
|Returnsofprovisionforimpairmentofaccountsreceivablewithsingleimpairmenttest|||
|Profits/lossesonexternalentrustedloans|||
|Profits/lossesonfairvaluechangesofinvestmentrealestatewithfairvaluemodeforfollow-upmeasurement|||
|Influenceoftheone-timeadjustmentofthecurrentprofits/lossesinaccordancewithtaxandaccountinglawsandregulationsonthecurrentprofits/losses|||
|Trusteefeeincomefromentrustedoperation|||
|Othernon-operatingincomeandexpenditurebesidestheaboveitems|3,459,361||
|Otherprofits/lossesconformingtothedefinitionofnon-currentprofits/losses|||
|Minus:Influencedamountofincometax|5,046,224||
|Influencedamountofminorityshareholders’equity|||
|Total|16,543,526|--|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd. 16.2Return onnet assets andearnings pershare
|||||
|-|-|-|-|
|Profitincurredinthisperiod|Weightedaveragereturnonnetassets|Earningspershare||
|||BasicEPS(Yuan/Share)|DilutedEPS(Yuan/Share)|
|NetprofitattributabletocommonshareholdersoftheCompany|8.78%|1.01|1.01|
|NetprofitattributabletocommonshareholdersoftheCompanydeductingnon-incidentalprofits/losses|8.58%|0.99|0.99|

16.3Accounting data differenceunderdomestic andforeign accountingstandard
16.3.1 Net profits& net assets difference disclosed in the financial report according to the international accounting standardandChineseaccounting standard
Unit:Yuan
||||||
|-|-|-|-|-|
||Netprofits||Netassets||
||Amountincurredinthisperiod|Amountincurredinpriorperiod|Endingbalance|Beginningbalance|
|InaccordancewiththeChineseaccountingstandard|695,021,847|746,060,248|8,265,370,769|7,564,099,003|
|Item&amountadjustedinaccordancewiththeinternationalaccountingstandard:|||||
|Inaccordancewiththeinternationalaccountingstandard|695,021,847|746,060,248|8,265,370,769|7,564,099,003|

2016SemiannualReportofYantaiChangyuPioneerWineCo.,Ltd.X、Catalogue
of Documents for Future Reference
1、2016Semi-annual reports signed bythepresident;
2、Financial reports signed and affixed theseal bythepresident, financial administratorin charge of accounting and chief of accounting department;
3、The Prospectus and Public Offering Announcement for Stock B in 1997, the Prospectus and TheShares’Change& PublicOffering Announcement forStock Ain 2000.
4、The originals of all documents and announcements that the Company made public during the report period inthe newspapers designated byChina Securities Regulatory Commission.
YantaiChangyu PioneerWineCompanyLimited Board ofDirectors August 29th, 2016