2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes√ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Anhui Gujing Distillery Company Limited
30 Jun. 2015
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|934,228,752.91|718,460,442.79|
|Settlement reserves|||
|Intra-Company lendings|||
|Financial assets measured by fair|||
|value with the changes be included in|414,875.36|303,919.60|
|the current gains and losses|||
|Derivative financial assets|||
|Notes receivable|773,020,909.81|505,893,430.66|
|Accounts receivable|5,771,113.56|4,337,953.26|
|Accounts paid in advance|59,137,284.25|35,711,617.98|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|2,369,097.21|4,274,666.66|
|Dividend receivable|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Other accounts receivable|10,369,201.23|7,967,903.24|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|1,247,855,385.96|1,227,182,774.09|
|Assets divided available for sale|||
|Non-current assets due within 1 year|||
|Other current assets|1,450,000,000.00|1,501,552,476.11|
|Total current assets|4,483,166,620.29|4,005,685,184.39|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||
|Available-for-sale financial assets|257,362,590.00|88,332,932.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|||
|Investing property|30,576,242.31|32,074,356.24|
|Fixed assets|1,723,053,180.88|1,724,134,467.11|
|Construction in progress|39,159,122.86|61,637,510.96|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|301,910,104.52|306,488,782.60|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|136,084,493.51|131,921,179.23|
|Deferred income tax assets|62,861,129.41|63,243,753.50|
|Other non-current assets|||
|Total of non-current assets|2,551,006,863.49|2,407,832,981.64|
|Total assets|7,034,173,483.78|6,413,518,166.03|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Intra-Company borrowings|||
|Financial liabilities measured by fair|||
|value with the changes be included in|||
|the current gains and losses|||
|Derivative financial liabilities|||
|Notes payable|294,084,023.18|258,452,214.00|
|Accounts payable|395,371,547.72|404,634,196.58|
|Accounts received in advance|590,946,715.63|377,503,471.86|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Employee’s compensation payable|186,861,937.45|220,198,521.28|
|Tax payable|314,485,972.33|468,679,523.63|
|Interest payable|||
|Dividend payable|100,720,000.00||
|Other accounts payable|572,362,971.96|456,572,505.42|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Liabilities divided available for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|2,454,833,168.27|2,186,040,432.77|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: preferred shares|||
|Perpetual capital securities|||
|Long-term payables|||
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Deferred income|39,042,134.11|40,839,961.86|
|Deferred income tax liabilities|24,040,581.94|5,586,793.44|
|Other non-current liabilities|||
|Total non-current liabilities|63,082,716.05|46,426,755.30|
|Total liabilities|2,517,915,884.32|2,232,467,188.07|
|Owners’ equity|||
|Share capital|503,600,000.00|503,600,000.00|
|Other equity instruments|||
|Of which: preferred shares|||
|Perpetual capital securities|||
|Capital reserves|1,294,938,493.19|1,294,938,493.19|
|Less: Treasury stock|||
|Other comprehensive income|72,091,421.40|16,669,604.07|
|Specific reserves|||
|Surplus reserves|256,902,260.27|256,902,260.27|
|Provisions for general risks|||
|Retained profits|2,388,725,424.60|2,108,940,620.43|
|Total equity attributable to owners of|||
||4,516,257,599.46|4,181,050,977.96|
|the Company|||
|Minority interests|||
|Total owners’ equity|4,516,257,599.46|4,181,050,977.96|
|Total liabilities and owners’ equity|7,034,173,483.78|6,413,518,166.03|

 Legal representative: Liang Jinhui Person-in-charge of the accounting work: Ye Changqing
Chief of the accounting division: Zhu Jiafeng
2. Balance sheet of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|839,382,496.44|593,001,536.78|
|Financial assets measured by fair|||
|value with the changes be included in|414,875.36|278,509.60|
|the current gains and losses|||
|Derivative financial assets|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Notes receivable|429,319,763.55|286,449,264.42|
|Accounts receivable|1,286,945.79|1,608,829.64|
|Accounts paid in advance|15,439,366.18|5,506,676.65|
|Interest receivable|2,369,097.21|4,274,666.66|
|Dividend receivable|||
|Other accounts receivable|121,966,237.41|124,826,309.55|
|Inventories|1,222,956,081.65|1,197,978,799.15|
|Assets divided available for sale|||
|Non-current assets due within 1 year|||
|Other current assets|1,450,000,000.00|1,497,612,148.31|
|Total current assets|4,083,134,863.59|3,711,536,740.76|
|Non-current assets:|||
|Available-for-sale financial assets|257,362,590.00|88,332,932.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|4,931,559.16|4,793,366.46|
|Long-term equity investment|338,089,408.32|338,089,408.32|
|Investing property|28,723,841.91|30,151,635.36|
|Fixed assets|1,533,783,287.82|1,525,364,298.59|
|Construction in progress|32,638,002.48|61,531,773.90|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|189,373,190.84|192,318,384.28|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|136,084,493.51|131,864,366.43|
|Deferred income tax assets|35,322,336.06|35,421,614.18|
|Other non-current assets|||
|Total of non-current assets|2,556,308,710.10|2,407,867,779.52|
|Total assets|6,639,443,573.69|6,119,404,520.28|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured by fair|||
|value with the changes be included in|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|the current gains and losses|||
|Derivative financial liabilities|||
|Notes payable|40,660,023.18|93,602,214.00|
|Accounts payable|291,957,561.50|402,837,653.24|
|Accounts received in advance|1,553,126,425.93|1,064,055,921.66|
|Employee’s compensation payable|75,082,480.52|79,329,070.21|
|Tax payable|163,389,525.54|168,778,299.92|
|Interest payable|||
|Dividend payable|100,720,000.00||
|Other accounts payable|283,879,458.04|255,065,310.80|
|Liabilities divided available for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|2,508,815,474.71|2,063,668,469.83|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: preferred shares|||
|Perpetual capital securities|||
|Long-term payables|||
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income|39,127,604.22|40,839,961.86|
|Deferred income tax liabilities|24,031,995.12|5,584,087.19|
|Other non-current liabilities|||
|Total non-current liabilities|63,159,599.34|46,424,049.05|
|Total liabilities|2,571,975,074.05|2,110,092,518.88|
|Owners’ equity:|||
|Share capital|503,600,000.00|503,600,000.00|
|Other equity instruments|||
|Of which: preferred shares|||
|Perpetual capital securities|||
|Capital reserves|1,247,162,107.35|1,247,162,107.35|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Less: Treasury stock|||
|Other comprehensive income|72,091,421.40|16,669,604.07|
|Specific reserves|||
|Surplus reserves|251,800,000.00|251,800,000.00|
|Retained profits|1,992,814,970.89|1,990,080,289.98|
|Total owners’ equity|4,067,468,499.64|4,009,312,001.40|
|Total liabilities and owners’ equity|6,639,443,573.69|6,119,404,520.28|

 3. Consolidated income statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2015|Jan.-Jun 2014|
|I. Total operating revenues|2,713,042,828.92|2,390,158,949.76|
|Including: Sales income|2,713,042,828.92|2,390,158,949.76|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Total operating cost|2,247,031,817.63|1,971,374,239.07|
|Including: Cost of sales|827,578,527.59|734,083,360.31|
|Interest expenses|||
|Handling charge and commission|||
|expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|392,182,734.37|324,862,025.08|
|Selling and distribution expenses|794,226,823.89|706,159,566.91|
|Administrative expenses|237,926,770.64|239,125,781.91|
|Financial expenses|-8,593,975.74|-32,364,892.13|
|Asset impairment loss|3,710,936.88|-491,603.01|
|Add: Gain/(loss) from change in fair|||
||40,432.58|7,270.00|
|value (―-‖ means loss)|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
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|-|-|-|
|Gain/(loss) from investment (―-‖|||
||38,298,172.94|54,652,112.80|
|means loss)|||
|Including: share of profits in associates|||
|and joint ventures|||
|Foreign exchange gains (―-‖ means loss)|||
|III. Business profit (―-‖ means loss)|504,349,616.81|473,444,093.49|
|Add: non-operating income|9,984,586.51|12,858,123.06|
|Of which: gains from non-current|||
||82,953.29|286,406.47|
|asset disposal|||
|Less: non-operating expense|1,279,224.88|1,554,085.61|
|Of which: losses from non-current|||
||644,420.16|1,389,957.09|
|asset disposal|||
|IV. Total profit (―-‖ means loss)|513,054,978.44|484,748,130.94|
|Less: Income tax expense|132,550,174.27|126,941,933.36|
|V. Net profit (―-‖ means loss)|380,504,804.17|357,806,197.58|
|Attributable to owners of the|||
||380,504,804.17|357,806,197.58|
|Company|||
|Minority shareholders’ income|||
|VI. After-tax net amount of other|||
||55,421,817.33|2,983,285.62|
|comprehensive incomes|||
|After-tax net amount of other|||
|comprehensive incomes attributable to|55,421,817.33|2,983,285.62|
|owners of the Company|||
|(I) Other comprehensive incomes|||
|that will not be reclassified into gains and|||
|losses|||
|1. Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|2. Enjoyable shares in other|||
|comprehensive incomes in investees that|||
|cannot be reclassified into gains and|||
|losses under the equity method|||
|(II) Other comprehensive incomes|||
|that will be reclassified into gains and|55,421,817.33|2,983,285.62|
|losses|||
|1. Enjoyable shares in other|||
|comprehensive incomes in investees that|||
|will be reclassified into gains and losses|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|under the equity method|||
|2. Gains and losses on fair|||
|value changes of available-for-sale|55,421,817.33|2,983,285.62|
|financial assets|||
|3. Gains and losses on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|4. Effective hedging gains and|||
|losses on cash flows|||
|5. Foreign-currency financial|||
|statement translation difference|||
|6. Other|||
|After-tax net amount of other|||
|comprehensive incomes attributable to|||
|minority shareholders|||
|VII. Total comprehensive incomes|435,926,621.50|360,789,483.20|
|Attributable to owners of the|||
||435,926,621.50|360,789,483.20|
|Company|||
|Attributable to minority|||
|shareholders|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.760|0.71|
|(II) Diluted earnings per share|0.760|0.71|

 4. Income statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2015|Jan.-Jun 2014|
|I. Total sales|1,526,161,277.67|1,320,382,051.92|
|Less: cost of sales|849,408,915.00|749,212,509.40|
|Business taxes and surcharges|370,306,018.23|307,286,754.62|
|Distribution expenses|49,930,659.26|50,515,240.37|
|Administrative expenses|162,304,060.52|159,555,096.01|
|Financial costs|-8,083,219.69|-27,114,146.94|
|Impairment loss|2,948,211.17|-423,137.26|
|Add: gain/(loss) from change infair value (―-‖ means loss)|||
||40,432.58|3,635.00|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
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|-|-|-|
|Gain/(loss) from investment (―-‖|||
||37,697,274.33|54,206,211.10|
|means loss)|||
|Of which: income form investment|||
|on associates and joint ventures|||
|II. Business profit (―-‖ means loss)|137,084,340.09|135,559,581.82|
|Add: non-business income|7,222,891.82|7,100,407.46|
|Of which: gains from non-current|||
|asset disposal|||
|Less: non-business expense|74,531.37|616,845.02|
|Of which: losses from non-current|||
||70,087.08|945,068.04|
|asset disposal|||
|III. Total profit (―-‖ means loss)|144,232,700.54|142,043,144.26|
|Less: income tax expense|40,778,019.63|40,273,822.54|
|IV. Net profit (―-‖ means loss)|103,454,680.91|101,769,321.72|
|V. After-tax net amount of other|||
||55,421,817.33|2,983,285.62|
|comprehensive incomes|||
|(I) Other comprehensive|||
|incomes that will not be reclassified|||
|into gains and losses|||
|1. Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|2. Enjoyable shares in other|||
|comprehensive incomes in investees|||
|that cannot be reclassified into gains|||
|and losses under the equity method|||
|(II) Other comprehensive|||
|incomes that will be reclassified into|55,421,817.33|2,983,285.62|
|gains and losses|||
|1. Enjoyable shares in other|||
|comprehensive incomes in investees|||
|that will be reclassified into gains and|||
|losses under the equity method|||
|2. Gains and losses on fair|||
|value changes of available-for-sale|55,421,817.33|2,983,285.62|
|financial assets|||
|3. Gains and losses on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|financial assets|||
|4. Effective hedging gains|||
|and losses on cash flows|||
|5. Foreign-currency financial|||
|statement translation difference|||
|6. Other|||
|VI. Total comprehensive incomes|158,876,498.24|104,752,607.34|
|VII. Earnings per share|||
|(I) Basic earnings per share|0.210|0.20|
|(II) Diluted earnings per share|0.210|0.20|

 5. Consolidated cash flow statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2015|Jan.-Jun 2014|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||2,825,242,242.74|2,427,634,003.82|
|commodities and rendering of service|||
|Net increase of deposits from|||
|customers and dues from banks|||
|Net increase of loans from the|||
|central bank|||
|Net increase of funds borrowed|||
|from other financial institutions|||
|Cash received from premium of|||
|original insurance contracts|||
|Net cash received from reinsurance|||
|business|||
|Net increase of deposits of policy|||
|holders and investment fund|||
|Net increase of dispose of the|||
|financial assets measured by fair value|||
|with the changes be included in the|||
|current gains and losses|||
|Cash received from interest,|||
|handling charges and commissions|||
|Net increase of intra-Company|||
|borrowings|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
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|-|-|-|
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received||590,000.00|
|Other cash received relating to|||
||175,019,524.21|213,011,013.81|
|operating activities|||
|Subtotal of cash inflows from operating|||
||3,000,261,766.95|2,641,235,017.63|
|activities|||
|Cash paid for goods and services|709,413,298.38|730,037,605.84|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in|||
|the central bank and amount due from|||
|banks|||
|Cash for paying claims of the|||
|original insurance contracts|||
|Cash for paying interest, handling|||
|charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|517,459,277.00|527,351,397.79|
|Various taxes paid|1,048,663,427.74|1,014,623,162.62|
|Other cash payment relating to|||
||388,508,106.00|445,435,903.82|
|operating activities|||
|Subtotal of cash outflows from|||
||2,664,044,109.12|2,717,448,070.07|
|operating activities|||
|Net cash flows from operating activities|336,217,657.83|-76,213,052.44|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
||1,359,031,928.76|980,093,922.21|
|investments|||
|Cash received from return on|||
||38,298,172.94|54,652,112.80|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|107,750.00|286,406.47|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
||500,000.00|1,100,000.00|
|investing activities|||
|Subtotal of cash inflows from investing|1,397,937,851.70|1,036,132,441.48|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|109,798,840.51|220,818,632.14|
|assets|||
|Cash paid for investment|1,402,588,358.90|1,020,029,260.00|
|Net increase of pledged loans|||
|Net cash paid to acquire|||
|subsidiaries and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||1,512,387,199.41|1,240,847,892.14|
|investing activities|||
|Net cash flows from investing activities|-114,449,347.71|-204,715,450.66|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|||
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
|activities|||
|Repayment of borrowings|||
|Cash paid for interest expenses and|||
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|by subsidiaries to minority shareholders|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
|financing activities|||
|Net cash flows from financing activities|||
|IV. Effect of foreign exchange rate|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||221,768,310.12|-280,928,503.10|
|equivalents|||
|Add: Opening balance of cash and|||
||682,360,442.79|1,306,930,710.96|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||904,128,752.91|1,026,002,207.86|
|equivalents|||

6. Cash flow statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2015|Jan.-Jun 2014|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,700,083,632.03|1,327,478,616.09|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||88,556,807.56|127,214,689.74|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,788,640,439.59|1,454,693,305.83|
|activities|||
|Cash paid for goods and services|551,870,710.00|525,512,650.29|
|Cash paid to and for employees|240,816,560.34|252,876,294.81|
|Various taxes paid|558,464,417.24|503,939,848.51|
|Other cash payment relating to|||
||66,678,887.51|75,252,706.56|
|operating activities|||
|Subtotal of cash outflows from|||
||1,417,830,575.09|1,357,581,500.17|
|operating activities|||
|Net cash flows from operating activities|370,809,864.50|97,111,805.66|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
||1,312,651,013.05|980,093,922.21|
|investments|||
|Cash received from return on|||
||37,697,274.33|54,206,211.10|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other||145,352.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Other cash received relating to|||
||500,000.00|1,100,000.00|
|investing activities|||
|Subtotal of cash inflows from investing|||
||1,350,848,287.38|1,035,545,485.31|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|106,844,334.84|218,463,253.40|
|assets|||
|Cash paid for investment|1,360,032,857.38|1,020,020,730.00|
|Net cash paid to acquire|||
|subsidiaries and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||1,466,877,192.22|1,238,483,983.40|
|investing activities|||
|Net cash flows from investing activities|-116,028,904.84|-202,938,498.09|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings|||
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
|activities|||
|Repayment of borrowings|||
|Cash paid for interest expenses|||
|and distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
|financing activities|||
|Net cash flows from financing activities|||
|IV. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||254,780,959.66|-105,826,692.43|
|equivalents|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|Add: Opening balance of cash andcash equivalents|||
||584,601,536.78|1,040,360,357.51|
|VI. Closing balance of cash and cashequivalents|||
||839,382,496.44|934,533,665.08|

7. Consolidated Statement of Changes inOwners’ Equity
Jan.-Jun. 2015
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2015|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity||||||||||||
|||instruments||||||||||||
|Item|||Perpet||||Other|||||Minorit|Total|
|||||||Less:||||General||||
||Share||ual||Capital||compre|Specific|Surplus||Retaine|y|owners’|
|||Prefer||||treasury||||risk||||
||capital||capita||reserve||hensive|reserve|reserve||d profit|interests|equity|
|||red||Other||stock||||reserve||||
||||l||||income|||||||
|||shares||||||||||||
||||securi|||||||||||
||||ties|||||||||||
|I. Balance at the|503,60||||1,294,9||||||2,108,9||4,181,0|
||||||||16,669,||256,902|||||
|end of the|0,000.||||38,493.||||||40,620.||50,977.|
||||||||604.07||,260.27|||||
|previous year|00||||19||||||43||96|
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|combination under||||||||||||||
|the same control||||||||||||||
|Other||||||||||||||
||503,60||||1,294,9||||||2,108,9||4,181,0|
|II. Balance at the|||||||16,669,||256,902|||||
||0,000.||||38,493.||||||40,620.||50,977.|
|period-begin|||||||604.07||,260.27|||||
||00||||19||||||43||96|
|III. Increase/||||||||||||||
|decrease in the|||||||55,421,||||279,784||335,206|
|period (―-‖ means|||||||817.33||||,804.17||,621.50|
|decrease)||||||||||||||
|(I) Total amount|||||||55,421,||||380,504||435,926|
|of the|||||||817.33||||,804.17||,621.50|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||
|-|-|-|
|comprehensive|||
|income|||
|(II) Capital paid|||
|in and reduced by|||
|owners|||
|1. Common shares|||
|invested by the|||
|shareholders|||
|2. Capital invested|||
|by the owners of|||
|other equity|||
|instruments|||
|3. Amounts of|||
|share-based|||
|payments|||
|recognized in|||
|owners’ equity|||
|4. Others|||
||-100,72|-100,72|
|(III) Profit|||
||0,000.0|0,000.0|
|distribution|||
||0|0|
|1. Appropriations|||
|to surplus reserves|||
|2. Appropriations|||
|to general risk|||
|provisions|||
|3. Appropriations|-100,72|-100,72|
|to owners (or|0,000.0|0,000.0|
|shareholders)|0|0|
|4. Other|||
|(IV) Internal|||
|carry-forward of|||
|owners’ equity|||
|1. New increase of|||
|capital (or share|||
|capital) from|||
|capital public|||
|reserves|||
|2. New increase of|||
|capital (or share|||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|capital) from|||||||
|surplus reserves|||||||
|3. Surplus reserves|||||||
|for making up|||||||
|losses|||||||
|4. Other|||||||
|(V) Specific|||||||
|reserve|||||||
|1. Withdrawn for|||||||
|the period|||||||
|2. Used in the|||||||
|period|||||||
|(VI) Other|||||||
||503,60|1,294,9|||2,388,7|4,516,257,599.46|
|IV. Closing|||72,091,|256,902|||
||0,000.|38,493.|||25,424.||
|balance|||421.40|,260.27|||
||00|19|||60||

 Jan.-Jun. 2014
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2014|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity||||||||||||
|||instruments||||||||||||
|||||||||||||Minorit||
|Item|||Perpet||||Other||||||Total|
|||||||Less:||||General||y||
||Share|Prefer|ual||Capital|treasury|compre|Specific|Surplus|risk|Retaine|interest|owners’|
||capital||capita||reserve||hensive|reserve|reserve||d profit||equity|
|||red||Other||stock||||reserve||s||
||||l||||income|||||||
|||shares||||||||||||
||||securi|||||||||||
||||ties|||||||||||
|I. Balance at the|503,60||||1,294,9||||||1,688,1||3,742,7|
||||||||-843,22||256,902|||||
|end of the|0,000.||||38,493.||||||58,733.||56,257.|
||||||||9.50||,260.27|||||
|previous year|00||||19||||||09||05|
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|combination under||||||||||||||
|the same control||||||||||||||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|Other|||||||
||503,60|1,294,9|||1,688,1|3,742,7|
|II. Balance at the|||-843,22|256,902|||
||0,000.|38,493.|||58,733.|56,257.|
|period-begin|||9.50|,260.27|||
||00|19|||09|05|
|III. Increase/|||||||
|decrease in the|||17,512,||420,781|438,294|
|period (―-‖ means|||833.57||,887.34|,720.91|
|decrease)|||||||
|(I) Total amount|||||||
|of the|||17,512,||597,041|614,554|
|comprehensive|||833.57||,887.34|,720.91|
|income|||||||
|(II) Capital paid|||||||
|in and reduced by|||||||
|owners|||||||
|1. Common shares|||||||
|invested by the|||||||
|shareholders|||||||
|2. Capital invested|||||||
|by the owners of|||||||
|other equity|||||||
|instruments|||||||
|3. Amounts of|||||||
|share-based|||||||
|payments|||||||
|recognized in|||||||
|owners’ equity|||||||
|4. Others|||||||
||||||-176,26|-176,26|
|(III) Profit|||||||
||||||0,000.0|0,000.0|
|distribution|||||||
||||||0|0|
|1. Appropriations|||||||
|to surplus reserves|||||||
|2. Appropriations|||||||
|to general risk|||||||
|provisions|||||||
|3. Appropriations|||||-176,26|-176,26|
|to owners (or|||||0,000.0|0,000.0|
|shareholders)|||||0|0|
|4. Other|||||||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|(IV) Internal|||||||
|carry-forward of|||||||
|owners’ equity|||||||
|1. New increase of|||||||
|capital (or share|||||||
|capital) from|||||||
|capital public|||||||
|reserves|||||||
|2. New increase of|||||||
|capital (or share|||||||
|capital) from|||||||
|surplus reserves|||||||
|3. Surplus reserves|||||||
|for making up|||||||
|losses|||||||
|4. Other|||||||
|(V) Specific|||||||
|reserve|||||||
|1. Withdrawn for|||||||
|the period|||||||
|2. Used in the|||||||
|period|||||||
|(VI) Other|||||||
||503,60|1,294,9|||2,108,9|4,181,0|
|IV. Closing|||16,669,|256,902|||
||0,000.|38,493.|||40,620.|50,977.|
|balance|||604.07|,260.27|||
||00|19|||43|96|

 8. Statement of changes inowners’ equity of the Company
Jan.-Jun. 2015
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2015|||||||||||
|||Other equity instruments||||||||||
||||Perpetu||||Other|||||
|||||||Less:|||||Total|
|Item|Share||al||Capital||comprehe|Specific|Surplus|Retaine||
|||Preferre||||treasury|||||owners’|
||capital||capital|Other|reserve||nsive|reserve|reserve|d profit||
|||d shares||||stock|||||equity|
||||securiti||||income|||||
||||es|||||||||
|I. Balance at the|503,600,||||1,247,162||16,669,60||251,800,0|1,990,0|4,009,312|
|end of the previous|000.00||||,107.35||4.07||00.00|80,289.|,001.40|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|year|||||98||
|Add: change of|||||||
|accounting policy|||||||
|Correction of|||||||
|errors in previous|||||||
|periods|||||||
|Other|||||||
||||||1,990,0||
|II. Balance at the|503,600,|1,247,162|16,669,60|251,800,0||4,009,312|
||||||80,289.||
|period-begin|000.00|,107.35|4.07|00.00||,001.40|
||||||98||
|III. Increase/|||||||
|decrease in the|||55,421,81||2,734,6|58,156,49|
|period (―-‖ means|||7.33||80.91|8.24|
|decrease)|||||||
|(I) Total amount|||||||
|of the|||55,421,81||103,454|158,876,4|
|comprehensive|||7.33||,680.91|98.24|
|income|||||||
|(II) Capital paid|||||||
|in and reduced by|||||||
|owners|||||||
|1. Common shares|||||||
|invested by the|||||||
|shareholders|||||||
|2. Capital invested|||||||
|by the owners of|||||||
|other equity|||||||
|instruments|||||||
|3. Amounts of|||||||
|share-based|||||||
|payments|||||||
|recognized in|||||||
|owners’ equity|||||||
|4. Others|||||||
||||||-100,72||
|(III) Profit||||||-100,720,|
||||||0,000.0||
|distribution||||||000.00|
||||||0||
|1. Appropriations|||||||
|to surplus reserves|||||||
|2. Appropriations|||||-100,72|-100,720,|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|to general risk|||||0,000.0|000.00|
|provisions|||||0||
|3. Appropriations|||||||
|to owners (or|||||||
|shareholders)|||||||
|4. Other|||||||
|(IV) Internal|||||||
|carry-forward of|||||||
|owners’ equity|||||||
|1. New increase of|||||||
|capital (or share|||||||
|capital) from|||||||
|capital public|||||||
|reserves|||||||
|2. New increase of|||||||
|capital (or share|||||||
|capital) from|||||||
|surplus reserves|||||||
|3. Surplus reserves|||||||
|for making up|||||||
|losses|||||||
|4. Other|||||||
|(V) Specific|||||||
|reserve|||||||
|1. Withdrawn for|||||||
|the period|||||||
|2. Used in the|||||||
|period|||||||
||||||1,992,8|4,067,468,499.64|
||503,600,|1,247,162|72,091,42|251,800,0|||
|(VI) Other|||||14,970.||
||000.00|,107.35|1.40|00.00|||
||||||89||

Jan.-Jun. 2014
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2014|||||||||||
|||Other equity instruments||||||||||
||||Perpetu||||Other|||||
|||||||Less:|||||Total|
|Item|Share||al||Capital||comprehe|Specific|Surplus|Retaine||
|||Preferre||||treasury|||||owners’|
||capital||capital|Other|reserve||nsive|reserve|reserve|d profit||
|||d shares||||stock|||||equity|
||||securiti||||income|||||
||||es|||||||||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|I. Balance at the|||||1,589,2||
||503,600,|1,247,162|-843,229.|251,800,0||3,590,996|
|end of the previous|||||77,915.||
||000.00|,107.35|50|00.00||,792.85|
|year|||||00||
|Add: change of|||||||
|accounting policy|||||||
|Correction of|||||||
|errors in previous|||||||
|periods|||||||
|Other|||||||
||||||1,589,2||
|II. Balance at the|503,600,|1,247,162|-843,229.|251,800,0||3,590,996|
||||||77,915.||
|period-begin|000.00|,107.35|50|00.00||,792.85|
||||||00||
|III. Increase/|||||||
|decrease in the|||17,512,83||400,802|418,315,2|
|period (―-‖ means|||3.57||,374.98|08.55|
|decrease)|||||||
|(I) Total amount|||||||
|of the|||17,512,83||577,062|594,575,2|
|comprehensive|||3.57||,374.98|08.55|
|income|||||||
|(II) Capital paid|||||||
|in and reduced by|||||||
|owners|||||||
|1. Common shares|||||||
|invested by the|||||||
|shareholders|||||||
|2. Capital invested|||||||
|by the owners of|||||||
|other equity|||||||
|instruments|||||||
|3. Amounts of|||||||
|share-based|||||||
|payments|||||||
|recognized in|||||||
|owners’ equity|||||||
|4. Others|||||||
||||||-176,26||
|(III) Profit||||||-176,260,|
||||||0,000.0||
|distribution||||||000.00|
||||||0||
|1. Appropriations|||||||

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
||||||||
|-|-|-|-|-|-|-|
|to surplus reserves|||||||
|2. Appropriations|||||-176,26||
|||||||-176,260,|
|to general risk|||||0,000.0||
|||||||000.00|
|provisions|||||0||
|3. Appropriations|||||||
|to owners (or|||||||
|shareholders)|||||||
|4. Other|||||||
|(IV) Internal|||||||
|carry-forward of|||||||
|owners’ equity|||||||
|1. New increase of|||||||
|capital (or share|||||||
|capital) from|||||||
|capital public|||||||
|reserves|||||||
|2. New increase of|||||||
|capital (or share|||||||
|capital) from|||||||
|surplus reserves|||||||
|3. Surplus reserves|||||||
|for making up|||||||
|losses|||||||
|4. Other|||||||
|(V) Specific|||||||
|reserve|||||||
|1. Withdrawn for|||||||
|the period|||||||
|2. Used in the|||||||
|period|||||||
||||||1,990,0||
||503,600,|1,247,162|16,669,60|251,800,0||4,009,312|
|(VI) Other|||||80,289.||
||000.00|,107.35|4.07|00.00||,001.40|
||||||98||

III. Company history
Authorized by document WGZGZ (1996) No.053 of Anhui Administrative Bureau of State-owned Property, Anhui Gujing Distillery Company Limited(―theCompany‖) was established as a limited
liability company with net assets of RMB 377,167,700 and state-owned shares of 155,000,000
shares and considered Anhui Gujing Company as the only promoter. The registration place was
Haozhou Anhui China. The Company was established on 5 March 1996 by document of WZM
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
(1996) No.42 of AnhuiPeople’s Government. The Company set up plenary session on 28 May 1996 and registered in Anhui on 30 May 1996 with business license of 14897271-1.
The Company has been issued 60,000,000 domestic listed foreign shares(―B‖ shares) in June 1996 and 20,000,000 ordinary shares(―A shares) on September 1996, ordinary shares are listed in national and par value is RMB 1.00 per share. Those A share and B share are listed in Shenzhen Stock exchange.
Headquarter of the Company is located in Gujing Haozhou Anhui. The Company and its subsidiaries (the Company) specialize in producing and selling white spirit.
Registered capitals of the Company were RMB 235,000,000 with stocks of 235,000,000, of which 155,000,000 shares were issued in China, B shares of 60,000,000 shares and A shares of 20,000,000 shares. The book value of the stocks of the Company was of RMB 1 Yuan per share.
On May 29, 2006, a shareholder meeting was held to discuss and approval a program of equity division of A share, the program was implement in June 2006. After implementation, all shares are outstanding share, which include 147,000,000 shares with restrict condition on disposal, represent62.55% of total equity, and 88,000,000 shares without restrict condition on disposal, represent37.45% of total equity.
The Company issued<Announcement of release restriction shares by Anhui Gujing Distillery CompanyLimited> on June 27, 2007, 11,750,000 outstanding shares with restrict condition on disposal are listed in stock market on June 29, 2007. Up to that day, outstanding shares with restrict condition on disposal are 135,250,000, representing57.55% of total equity, the share without restrict condition are 99,750,000, representing42.45% of total equity.
The Company issued<Announcement of release restriction shares by Anhui Gujing Distillery CompanyLimited> on July 17, 2008, 11,750,000 outstanding shares with restrict condition on disposal are listed in stock market on July 18, 2008. Up to that day, outstanding shares with restrict condition on disposal are 123,500,000, representing52.55% of total equity, the share without restrict condition are 111,500,000, representing47.45% of total equity.
The Company issued<Announcement of release restriction shares by Anhui Gujing Distillery CompanyLimited> on July 24, 2009, 123,500,000 outstanding shares with restrict condition on disposal are listed in stock market on 29 July, 2009. Up to that day, theCompany’s all shares are all tradable.
As approved by the CSRC Document Zheng-Jian-Xu-Ke[2011] No. 943, the Company privately offered 16,800,000 ordinary shares (A-shares) to special investors on 15 Jul. 2011, with a par value of RMB 1 and the price of RMB 75.00 per share, raising RMB 1,260,000,000.00 in total, the net amount of raised funds stood at RMB 1,227,499,450.27 after deducting RMB 32,500,549.73 of various issuance expenses. Certified Public Accountants verified the raised capital upon its arrival and issued the Capital Verification Report Reanda-Yan-Zi[2011] No. 1065.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
In accordance with the resolutions made at the 2011 AnnualShareholders’ General Meeting, basing on the total share capital of 251,800,000 shares, the Company decided to transfer the capital reserves to share capital by 10 shares upon each 10 shares to the A-share holders registered in the Company on 27 Apr. 2012 and the B-share holders registered in the Company on 4 May 2012, thus the total share capital increased to RMB 503,600,000 after the capitalization. Reanda Certified Public Accountants verified the raised capital (Capital Verification Report Reanda-Yan-Zi[2012] No. 1022). Up to 4 May 2012, the Company has transferred RMB 251,800,000 of capital reserves to share capital.
Pursuant to the decision of annual shareholders meeting in 2012, the Company that considered 251,800,000 shares as base number on 31 December 2013 transferred capital reserve into share capital at a rate of―10 shares for per 10shares‖ accounting for 251,800,000 shares and implemented in the year of 2012. Upon the transference, the registered capitals increased to RMB 503,600,000. By 30 Jun. 2015, the Company issued 503,600,000 shares.
The approved business of the Company including procurement of grain (operating with business license), manufacture of distilled spirits, wine distilling facilities, packaging material, bottles, alcohol, grease (limited to byproducts from wine manufacture), and research and development of high-tech, biotechnology development, agricultural and sideline products deep processing, as well as sale of self-manufacturing products.
The Company and the final parent company is Anhui Gujing Company Co., Ltd in China.
Financial statement of the Company will be released on 20 Aug. 2015 by the board of directors. According to the articles of the Company, the financial statement will be submitted to the Annual General Meeting for review.
IV. Basis for the preparation of financial statements
1. Basis for the preparation
With the going-concern assumption as the basis and based on transactions and other events that actually occurred, the Company prepared financial statements in accordance with the ASBE-Basic Standard (No. 33 issued decreed by Ministry of Finance and No. 76 revised decreed by Ministry of Finance), the 41 specific standards of Accounting Standards for Business Enterprises issued by Ministry of Finance of the PRC on 15 Feb 2006 and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as―the Accounting Standards for BusinessEnterprises‖,―China AccountingStandards‖ or―CAS‖), Rules for Preparation Convention of Disclosure of Public Offering Companies No.15– General Regulations for Financial Reporting (revised in 2014) by China Securities Regulatory Commission.
In line with relevant rules of ASBE, financial accounting of the Company is based on accrual
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
system. Except financial instruments and instrument real estate, the financial statement is calculated on the basis of history costs. Available-for-sale non-current assets are calculated by the lower one of fair value deducting estimated costs and original costs meeting the standard of available-for-sale. If assets confront impairment, it shall be withdrawn provision for impairment in line with relevant stipulations.
V. Declaration of Compliance with the Enterprise Accounting Standards
The financial statements of the Company have been prepared in accordance with the Enterprise Accounting Standards to present truly and completely the financial position of the Company on 30 June 2015, operating results, cash flow from January to June in 2015 and other relevant information. The financial statement of the Company met the relevant disclosure requirements of financial statement and notes of―Compiling stipulations of public information disclosure No.15---general rules of financialstatement‖ (revised in 2014).
VI. Main accounting policies and accounting estimates
1. Accounting year
Accounting year is divided to annual term and medium term. Accounting medium refers to reporting period shorter than a complete accounting period. The Company employs a period of calendar days from 1 Jan. to 31 Dec. each year as accounting year.
2. Operating cycle
Normal operating cycle refers to the period from the Company purchases the assets for processing to realize the cash or cash equivalents. The Company regards 12 months as an operating cycle and regards which as the partition criterion of the mobility of the assets and liabilities.
3. Bookkeeping base currency
Renminbi is the dominant currency used in the economic circumstances where the Company and its domestic subsidiaries are involved. Therefore, the Company and its domestic subsidiaries use Renminbi as their bookkeeping base currency. And the Company adopted Renminbi as the bookkeeping base currency when preparing the financial statements for the reporting period. 4. Accounting treatment methods for business combinations under the same control and those not under the same control
The term―businesscombinations‖ refers to a transaction or event bringing together two or more separate enterprises into one reporting entity. Business combinations are classified into the business combinations under the same control and the business combinations not under the same control. (1) Accounting treatment of the business combination that is under the same control
A business combination involving enterprises under common control is a business combination in
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which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If the balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Company conducting business combinations is recognized in current profit and loss. The combination date is the date on which one combining enterprise effectively obtains control of the other combining enterprises.
Those assets and liabilities obtained by the Company during the business combination should be recognized in the carrying value of the equity of the merged party on the merger date. The difference between the carrying amount of the net assets obtained and carrying amount of the merger consideration (or total par value of issued shares) paid shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Direct costs of a business combination shall be reckoned into current gains and losses.
(2) Accounting treatment of the business combination that is not under the same control
A business combination involving entities not under common control is a business combination in which all of the combining entities are not ultimately controlled by the same party or parties both before and after the business combination. In business combination not under the same control, acquirer refers to party obtaining control of other combining corporations in the date of acquisition and acquiree refers to corporation participating in combination. Date of acquire refers to the date the acquirer actually obtaining control of the acquiree.
As for combination not under the same control, costs of combination includes assets that acquirers occur in the date of combination in order to obtain control of acqirees, loans, fair value of issued equity securities, intermediary costs such as audit, legal services and evaluation consultation, and other administrative fees occurred in the reporting period. As for trading costs that acquirers as combination consideration issue equity securities or debt securities, it shall be reckoned into initial accounts of equity securities or debt securities. As for business combination realized by several exchanges and trades, in the combined financial statement of the Company, the Company shall recalculate the stock right obtained by acquirees before the date of acquisition in line with fair value of the stock right in the date of acquisition. When the Company acts as the combination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the
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acquisition date of assets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity securities issued by the acquirer. Any excess of the cost of a business combination over theacquirer’s interest in the fair value of theacquiree’s identifiable net assets is recognized as goodwill, while any excess of theacquirer’s interest in the fair value of theacquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities or liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liability securities. Other direct expenses occur when the Company conducting business combinations is recognized in current profit and loss. The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Company, at the acquisition date, recognized theacquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The acquisition date is the date on which the acquirer effectively obtains control of the acquiree. As for deductible temporary difference of acquirers obtained by acquirers whichcan’t be confirmed due to failure of meeting the confirmation requirements of deferred income tax assets, if there is newly information proving the existence of relevant situation in the date of acquisition in a year after the acquisition date and financial benefits of deductible temporary difference of acquirers in the date of acquisition are estimated to be realized, deferred income tax assets shall be confirmed. At the same time, goodwill shall be decreased. If goodwill is insufficient, the difference shall be reckoned into current gains and losses; except the above circumstance, reliable deferred income tax assets relevant to the Company shall be reckoned into current gains and losses.
For a business combination not involving enterprise under common control, which achieved in stages that involves multiple exchange transactions, according to―The notice of the Ministry of Finance on the issuance of Accounting Standards Interpretation No.5‖ (CaiKuai[2012] No. 19) on the―packagedeal‖ criterion (see Note IV. 5 (2)), to judge the multiple exchange transactions whether they are the―packagedeal‖. If it belong to the―packagedeal‖ in reference to the preceding paragraphs of this section and the Notes described in IV. 13―long-terminvestment‖ accounting treatment, if it does not belong to the―packagedeal‖ to distinguish the individual financial statements and the consolidated financial statements related to the accounting treatment:
In the individual financial statements, the sum of the book value and new investment cost of the Company holds in the acquiree before the acquiring date shall be considered as initial cost of the investment. Other related comprehensive gains in relation to the equity interests that the Company holds in the acquiree before the acquiring date shall be treated on the same basis as the acquiree directly disposes the related assets or liabilities when disposing the investment (that is, except for the corresponding share in the changes in the net liabilities or assets with a defined benefit plan
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measured at the equity method arising from theacquiree’s re-measurement, the others shall be transferred into current investment gains).
In theCompany’s consolidated financial statements, as for the equity interests that the Company holds in the acquiree before the acquiring date, they shall be re-measured according to their fair values at the acquiring date; the positive difference between their fair values and carrying amounts shall be recorded into the investment gains for the period including the acquiring date. Other related comprehensive gains in relation to the equity interests that the Company holds in the acquiree before the acquiring date shall be treated on the same basis as the acquiree directly disposes the related assets or liabilities when disposing the investment (that is, except for the corresponding share in the changes in the net liabilities or assets with a defined benefit plan measured at the equity method arising from theacquiree’s re-measurement, the others shall be transferred into current investment gains on the acquiring date).
5. Methods for preparing consolidated financial statements
(1) Principle for determining the consolidation scope
The consolidation scope for financial statements is determined on the basis of control. The term―control‖ is the power of the Company upon an investee, with which it can take part in relevant activities of the investee to obtain variable returns and is able to influence the amount of returns. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. A subsidiary is an enterprise or entity controlled by the Company.
(2) Methods for preparing the consolidated financial statements
The Company begins to include subsidiaries into consolidation scope from the date obtaining net assets of subsidiaries and actual control of production and operation and terminates to include subsidiaries into consolidation scope from the date losing actual control of subsidiaries. As for the disposal of subsidiaries, operating results and cash flow are included in consolidated income statement and consolidated statement of cash flow before the date of the disposal; as for current disposal of subsidiaries, opening balance of the consolidated balance sheet shall not be adjusted. As for subsidiaries increased in the combination not under the same control, operating results and cash flow after the date of the acquisition are included in consolidated income statement and consolidated statement of cash flow, in addition, opening balance of the consolidated balance sheet shall not be adjusted. As for subsidiaries increased in the combination under the same control and combined parties under acquisition, operating results and cash flow form the beginning of combination to the date of combination are included in consolidated income statement and consolidated statement of cash flow, in addition, opening balance of the consolidated balance sheet shall be adjusted.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Where a subsidiary was acquired during the reporting period, through a business combination involving entities under common control, the financial statements of the subsidiary are included in the consolidated financial statements as if the combination had occurred at the date that common control was established. Therefore the opening balances and the comparative figures of the consolidated financial statements are restated. In the preparation of the consolidated financial statements, thesubsidiary’s assets, liabilities and results of operations are included in the consolidated balance sheet based on their carrying amounts; while results of operations are included in the consolidated income statement, from the date that common control was established.
All the significant inter-company balances, trading and unrealized profits shall be offset when preparing the consolidated financial statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy atowners’ equity at period-begin, its balance still offset minorityshareholders’ equity.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makes necessary adjustments to the financial statements of the subsidiary based on theCompany’s own accounting period or accounting policies. Intra-Company balances and transactions, and any unrealized profit or loss arising from intra-Company transactions, are eliminated in preparing the consolidated financial statements. Unrealized losses resulting from intra-Company transactions are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment.
When losing control right of subsidiaries because of the disposal of stock right investment or other reasons, the Company shall recalculate residual stock right in accordance to the fair value in the date of losing control right. As for remaining equity investment after disposal, the Company will re-account it according to the fair value at the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losing control right. Then follow-up measurement of remaining equity shall be arranged in line with―No.2—Long-term EquityInvestment‖ or―No.22—Affirmation and Calculation of FinancialInstrument‖. More details please refer to Note IV, 13―Long-term EquityInvestment‖ or Note IV, 9―FinancialInstrument‖.
The company through multiple transactions step deals with disposal of the subsidiary's equity investment until the loss of control; need to distinguish between equity until the disposal of a subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subject to the following conditions and the economic impact of one or more of cases, usually indicates that several transactions should be accounted for as a package deal:① these transactions are considered simultaneously, or in the case
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
of mutual influence made,② these transactions as a whole in order to achieve a complete business results;③ the occurrence of a transaction depends on occurs at least one other transaction ;④ a transaction look alone is not economical, but when considered together with other transaction is economical. If they do not belong to the package deal, each of them separately, as the case of a transaction in accordance with―without losing control over the disposal of a subsidiary part of long-term equityinvestments‖ (see Note IV. 13. (2)④)) and―due to the disposal of certain equity investments or other reasons lost control of a subsidiary of theoriginal‖ (see previous paragraph) principles applicable accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing control of the price of each disposal entitled to share in the net assets of the subsidiary's investment corresponding to the difference between the disposals, recognized in the consolidated financial statements as other comprehensive income, loss of control over the transferred together with the loss of control or loss in the period.
6. Classification of joint arrangements and accounting treatment of joint operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above. The Company classifies joint arrangements into joint operations and joint ventures according to its rights and duties in the joint arrangements. A joint operation refers to a joint arrangement where the Company enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement where the Company is only entitled to the net assets of the arrangement. TheCompany’s investments in joint ventures are measured at the equity method according to the accounting policies mentioned in Note IV. 13 (2)②―Long-term equity investments measured at the equitymethod‖.
For a joint operation, the Company, as a joint operator, recognizes the assets and liabilities that it holds and bears in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to theCompany’s stake in the joint operation; recognizes the income from sale of theCompany’s share in the output of the joint operation; recognizes the income from sale of the jointoperation’s outputs according to theCompany’s stake in it; and recognizes the expense solely incurred to the Company and the expense incurred to the joint operation according to theCompany’s stake in it.
When the Company, as a joint operator, transfers or sells assets (the assets not constituting business, the same below) to the joint operation, or purchases assets from the joint operation, before the assets are sold to a third party, the Company only recognizes the share of the other joint operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in<The
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Accounting Standard No. 8 for BusinessEnterprises—AssetImpairment>, the Company shall fully recognizes the loss for a transfer or sale of assets to a joint operation; and shall recognize the loss according to its stake in the joint operation for a purchase of assets from the joint operation.
7. Recognition standard for cash and cash equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments having short holding term (normally will be due within three months from the day of purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be measured reliably and have low risks of change.
8. Foreign currency businesses and translation of foreign currency financial statements (1) Accounting treatments for translation of foreign currency transactions
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying[the spot exchange rate on the date of the transaction / an exchange rate that approximates the actual spot exchange rate on the date oftransaction]. The exchange of foreign currency and transactions related to the foreign exchange are translated at the spot exchange rate.
(2) Accounting treatments for translation of foreign currency monetary items and non-monetary items
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the balance sheet date. All the exchange differences thus resulted are taken to profit or loss, except for① those relating to foreign currency borrowings specifically for construction and acquisition of qualifying assets, which are capitalized in accordance with the principle of capitalization of borrowing costs,② hedging accounting, the exchange difference related to hedging instruments for the purpose of net oversea operating investment is recorded in the comprehensive income till the date of disposal and recognized in profit or loss of the period; exchange difference from changes of other account balance of foreign currency monetary items,③ available-for-trade is recorded into profit or loss except for amortized cost.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional currency is not changed. Non-monetary foreign currency items measured at fair value are translated at the spot exchange rate prevailing at the date when the fair values are determined. The exchange difference thus resulted are recognized in profit or loss for the current period or as capital reserve. 9. Financial instruments
The Company recognizes a financial asset or liability when it becomes a party of the relevant financial instrument contract. Financial assets and liabilities are measured at fair value in initial
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recognition. As for the financial assets and liabilities measured at fair value of which changes are recorded into current gains and losses, the relevant dealing expenses are directly recorded into gains and losses; and the dealing expenses on other kinds of financial assets and liabilities are included in the amounts initially recognized.
(1) Determination of the fair value of main financial assets and financial liabilities
Fair value refers to the price that a market participant shall receive for selling an asset or shall pay for transferring a liability in an orderly transaction on the measurement date. As for the financial assets or financial liabilities for which there is an active market, the quoted prices in the active market shall be used to determine the fair values thereof. The quoted prices in the active market refers to the prices available from stock exchange,broker’s agencies, guilds, pricing organization and etc., which represent the actual trading price under equal transaction. Where there is no active market for a financial instrument, the enterprise concerned shall adopt value appraisal techniques, including the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc., to determine its fair value.
(2) Classification, recognition and measurement of financial assets
The purchase and sale of financial assets under the normal ways shall be recognized and stopped to be recognized respectively at the price of transaction date. Financial assets shall be classified into the following four categories when they are initially recognized: (a) the financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period, (b) the investments which will be held to their maturity; (c) loans and the account receivables; and (d) financial assets available for sale.
① The financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period
Including transactional financial assets and the financial assets which are designated to be measured at their fair value when they are initially recognized and of which the variation is recorded into the profits and losses of the current period;
The financial assets meeting any of the following requirements shall be classified as transactional financialassets：A. The purpose to acquire the said financial assets is mainly for selling them in the near future; B. Forming a part of the identifiable combination of financial instruments which are managed in a centralized way and for which there are objective evidences proving that the enterprise may manage the combination by way of short-term profit making in the near future; C. Being a derivative instrument, excluding the designated derivative instruments which are effective
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative instruments which are connected with the equity instrument investments for which there is no quoted price in the active market, whose fair value cannot be reliably measured, and which shall be settled by delivering the said equity instruments.
The financial assets meeting any of the following requirements shall be designated as financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period for initial recognition: A. the designation can eliminate or significantly reduce the difference of relevant gains and losses between recognition and measurement causing from different bases for measurement of financial assets; B. The official written documents for risk management and investment strategies of the enterprise have clearly stated that it shall, manage, evaluate and report to important management personnel based on the fair value, about the financial assets Company or the Company of financial assets& liabilities which the financial assets are belong to.
For the financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period shall continue to be measured by fair value, gains and losses of change in fair value, dividends and interest related with these financial assets should be recorded into gains and losses of current period.
② Held-to-maturity investment
The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date of maturity, a fixed or determinable amount of repo price and which the enterprise holds for a definite purpose or the enterprise is able to hold until its maturity.
For the held-to-maturity investment adopting actual interest rate method, which is measured at the post-amortization costs, the profits and losses that arise when such financial assets or financial liabilities are terminated from recognition, or are impaired or amortized, shall be recorded into the profits and losses of the current period.
The actual interest rate method refers to the method by which the post-amortization costs and the interest incomes of different installments or interest expenses are calculated in light of the actual interest rates of the financial assets or financial liabilities (including a set of financial assets or financial liabilities). The actual interest rate refers to the interest rate adopted to cash the future cash flow of a financial asset or financial liability within the predicted term of existence or within a shorter applicable term into the current carrying amount of the financial asset or financial liability. When the actual interest rate is determined, the future cash flow shall be predicted on the basis of taking into account all the contractual provisions concerning the financial asset or financial liability (the future credit losses shall not be taken into account).and also the various fee charges, trading
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
expenses, premiums or reduced values, etc., which are paid or collected by the parties to a financial asset or financial liability contract and which form a part of the actual interest rate.
③ Loans and the accounts receivables
Loans and the accounts receivables refer to non-derivative financial assets, which there is no quotation in the active market, with fixed recovery cost or recognizable.
Financial assets that are defined as loans and the accounts receivables by the Company including notes receivables, accounts receivables, interest receivable, dividends receivable and other receivables etc..
Loans and the accounts receivables are made follow-up measurement on the basis of post-amortization costs employing the effective interest method. Gains or loss arising from the termination recognition, impairment occurs or amortization shall be recorded into the profits and losses of the current period.
④ Assets available for sales
Assets available for sales including non-derivative financial asset that has been assigned as assets available for sales on the initial recognition and financial assets excluded those measured at fair value and of which the variation into profits and losses of the current period, they are some financial assets, loans and accounts receivables, held-to-maturity investment.
The cost at the period-end of the available-for-sale liabilities instruments should be confirmed according to its amortized cost method, that is the initially recognized amount which deduct the principal that had been repaid, to plus or minus the accumulative amortization amount formed by the amortization between the difference of the initially recognized amount and the amount on the due date that adopted the actual interest rate method, and at the same time deduct the amount after the impairment loss happened. The cost at the period-end of the available-for-sale liabilities instruments is its initial cost.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensiveincome，and be carried forward when the said financial assets stopped recognition, then it shall be recorded into the profits and losses of the current period. But, the equity instrument investment which neither have quotation in the active market nor its fair value could not be reliable measured, as well as the derivative financial assets that concern with the equity instruments and should be settled through handing over to its equity instruments, should take the follow-up measurement according to the cost.
Interest receive during the holding of assets available for sales and cash dividends with distribution announcement by invested companies, it shall be recorded into the profits and losses of the current
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period.
(3) Impairment of financial assets
The Company assesses at the balance sheet date the carrying amount of every financial asset except for the financial assets that measured by the fair value. If there is objective evidence indicating a financial asset may be impaired, a provision is provided for the impairment.
The Company carries out a separate impairment test for every financial asset which is individually significant. As for a financial asset which is individually insignificant, an impairment test is carried out separately or in the financial asset Company with similar credit risk. Where the financial asset (individually significant or insignificant) is found not impaired after the separate impairment test, it is included in the financial asset Company with similar credit risk and tested again on the Company basis. Where the impairment loss is recognized for an individual financial asset, it is not included in the financial asset Company with similar credit risk for an impairment test.
① Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of impairment loss on the reserving date.
② Impairment of available-for-sale financial assets
When it judged that the decrease of fair value of the available-for-sale equity instrument investment is serious and not temporarily after comprehensive considering relevant factors, it reflected that the available-for-sale equity instrument investment occurred impairment. Of which, the―seriousdecline‖ refers to the accumulative decline range of the fair value over20%; while the―non-temporarydecline‖ refers to the consecutive decline time of the fair value over 12 months.
Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the fair value of the capital reserve which is directly included are transferred out and recorded in the profits and losses for the current period. The accumulative losses transferred out are the balance obtained from the initially obtained cost of the said financial asset after deducting the principals as taken back, the amortized amount, the current fair value and the impairment loss originally recorded in the profits and losses.
Where the impairment loss has been recognized for an available-for-sale financial asset, if, within
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
the accounting periods thereafter, there is any objective evidence proving that the value of the said financial asset has been restored and the restoration is objectively related to the events that occur after the impairment loss was recognized, the originally recognized impairment loss is reversed. The impairment losses on the available-for-sale equity instrument investments are reversed and recognized as other comprehensive incomes, and the impairment losses on the available-for-sale liability instruments are reversed and recorded in the profits and losses for the current period. The impairment loss incurred to an equity instrument investment for which there is no quoted price in the active market and whose fair value cannot be reliably measured, or incurred to a derivative financial asset which is connected with the said equity instrument investment and which must be settled by delivering the said equity investment, is not reversed.
(4) Recognition and measurement of financial asset transfers
Where a financial asset satisfies any of the following requirements, the recognition of it is terminated:① The contractual rights for collecting the cash flow of the said financial asset are terminated;② The said financial asset has been transferred and nearly all of the risks and rewards related to the ownership of the financial asset to the transferee; or③ The said financial asset has been transferred. And the Company has ceased its control on the said financial asset though it neither transfers nor retains nearly all of the risks and rewards related to the ownership of the financial asset.
Where the Company neither transfers nor retains nearly all of the risks and rewards related to the ownership of a financial asset, and it does not cease its control on the said financial asset, it recognizes the relevant financial asset and liability accordingly according to the extent of its continuous involvement in the transferred financial asset. The term "continuous involvement in the transferred financial asset" refers to the risk level that the enterprise faces resulting from the change of the value of the financial asset.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between the amounts of the following 2 items is recorded in the profits and losses of the current period: (1) The book value of the transferred financial asset; and (2) The sum of consideration received from the transfer, and the accumulative amount of the changes of the fair value originally recorded in other comprehensive incomes.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the book value of the transferred financial asset is apportioned between the portion whose recognition has been stopped and the portion whose recognition has not been stopped according to their respective relative fair value, and the difference between the amounts of the following 2 items is included into the profits and losses of the current period: (1) The summation of the consideration received from
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
the transfer and the portion of the accumulative amount of changes in the fair value originally recorded in other comprehensive incomes which corresponds to the portion whose recognition has been stopped; and (2) The amortized carrying amounts of the aforesaid amounts.
In respect of the assets using recourse to sell or using endorsement to transfer, the Company needs to determine whether almost all of the risks and rewards of the financial asset ownership are transferred. If almost all of the risks and rewards of the financial asset ownership had been transferred to the transferee, derecognize the financial assets. For almost all of the risks and rewards of the financial asset ownership retained, do not end to recognize the financial assets. For which neither transfer or retain almost all of the risks and rewards of the financial asset ownership, continuously judge whether the Company retain the control of the assets, and conduct accounting treatment according to the principle of mentioned in the previous paragraphs.
(5) Classification and measurement of financial liabilities
In the initial recognition, financial liabilities are divided into the financial liabilities measured at fair values and whose changes are recorded in current gains and losses and other financial liabilities. Financial liabilities are initially recognized at their fair values. As for a financial liability measured at fair value and whose changes are recorded in current gains and losses, the relevant trading expense is directly recorded in the profits and losses for the current period. As for other financial liabilities, the relevant trading expenses are recorded in the initially recognized amounts.
① Financial liabilities measured at fair values and whose changes are recorded in current gains and losses
Such financial liabilities are divided into transactional financial liabilities and financial liabilities designated to be measured at fair values and whose changes are recorded in current gains and losses in the initial recognition under the same conditions where such financial assets are divided into transactional financial assets and financial assets designated to be measured at fair values and whose changes are recorded in current gains and losses in the initial recognition.
Financial liabilities measured at fair values and whose changes are recorded in current gains and losses are subsequently measured at their fair values. Gains or losses arising from the fair value changes, as well as the dividend and interest expenses in relation to the said financial liabilities, are recorded in the profits and losses for the current period.
② Other financial liabilities
As for a derivative financial liability connected to an equity instrument for which there is not quoted price in an active market and whose fair value cannot be reliably measured and which must be settled by delivering the equity instrument, it is subsequently measured on the basis of costs. Other financial liabilities are subsequently measured according to the amortized cost using the actual
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
interest rate method. Gains or losses arising from de-recognition or amortization of the said financial liabilities is recorded in the profits and losses for the current period.
③ Financial guarantee contract and loan commitment
For the financial guarantee contracts which are not designated as a financial liability measured at its fair value and the variation thereof is recorded into the profits and losses of the current period, or the loan commitment which is not designated as a financial liability measured at its fair value and the variation thereof is recorded into the gains and losses that will be loaned lower than the market interest rate, which shall be initially recognized by fair value, and the subsequent measurement shall be made after they are initially recognized according to the higher one of the following: a. the amount as determined according to the Accounting Standards for Enterprises No. 13– Contingencies; b. the surplus after accumulative amortization as determined according to the principles of the Accounting Standards for Enterprises No. 14 - Revenues is subtracted from the initially recognized amount.
(6) De-recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial liability be terminated in all or partly. Where the Company (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities 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, it terminates the recognition of the existing financial liability, and at the same time recognizes the new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall include into the profits and losses of the current period for the gap between the book value which has been terminated from recognition and the considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed) (7) Derivatives and embedded derivatives
Derivative financial instruments include derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are substantially re-measured at fair value. The resulting gain and loss is recognized in profit or loss.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as a financial asset or financial liability at fair value though profit or loss, and the treated as a standalone derivative if (a) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; and (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
derivative. If the Company is unable to measure the embedded derivative separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a financial asset or financial liability at fair value through profit or loss.
(8) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
(9) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The Company issues (including refinancing), re-purchases, sells or written-offs the equity instrument as the disposing of the changes of the equity. The Company not recognized the changes of the fair value of the equity instrument. The transaction expenses related to the equity transaction would be deducted from the equity.
All types of distribution (excluding stock dividends) made by the Company to holders of equity instruments are deducted fromshareholders’ equity. The Company does not recognize any changes in the fair value of equity instruments.
10. Receivables
The receivables by the Company include account receivables, and other receivables.
(1) Criteria for recognition of bad debts:
The Company carries out an inspection on the balance sheet date. Where there is any objective evidence proving that the receivables have been impaired, an impairment provision shall be made: 1) A serious financial difficulty occurs to the issuer or debtor;
2) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests or the principal, etc.;
3) The debtor will probably become bankrupt or carry out other financial reorganizations;
4) Other objective evidences showing the impairment of the receivables.
(2) Method for bad debts provision
① Provisions of bad debts in account receivables that is individually significant.
The Company recognized the accounts receivables which amounted to more than 2 million as the account receivables that is individual significant.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
For an account receivable that is individually significant, the asset is individually assessed for impairment, the impairment loss is recognized at the difference between the present value of future cash flow less the carrying amount, and provision is made accordingly.
② Provisions of bad debts in account receivables that individually insignificant item with similar credit risk characteristics that have significant risk:
A. Evidence of credit risk characteristics
Whether the financial asset is individually significant or not individually significant, it is included in a group of financial assets with similar credit risk characteristics and collectively assessed for impairment. Such credit risk reflects the repayment of all due amount under the contract, and is related to the estimation of future cash flow expected to be derived from the assets.
Evidence of portfolios:
Item Basis
Age portfolios Age
Related party portfolios Companies within the combination scope of the Company
B. Provision by credit risk characteristics
During the Company impairment test, the amount of bad debts provisions is determined by the assessed result from the experience of historical loss and current economic status and the existing loss in the estimated account receivables according to the set of account receivables and credit risk characteristic.
Provision for different portfolios:
Item Provision
Age portfolios Age analysis method
Don’t withdraw the bad debts provision unless the related-party lost the
Related party portfolios
repaying capability
a. Portfolio by age analysis
Category Proportion for accounts receivable(%) Proportion for other receivable(%) Within 1 year (including 1 year, similarly
hereinafter)
Including:[within 6months] 1.00 1.00[7 to 12months] 5.00 5.00
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Category Proportion for accounts receivable(%) Proportion for other receivable(%) 1 to 2 years 10.00 10.00 2 to 3 years 50.00 50.00 Over 3 years 100.00 100.00③Accounts receivable with insignificant amount but being individually withdrawn bad debts provision
When making individual impairment test on accounts receivable with insignificant amount but high credit risk, the impairment loss shall be recognized based on the difference of the book values higher than the present value of future cash flows, then withdraw the bad debts provision. For example, accounts receivable of related parties; accounts receivable involving dispute or litigation, arbitration; accounts receivable having clear signs to indicate that debtor probably can not implement obligations of payment.
(3) Reversal of provision for bad debt
If there is any provident demonstrating recovery of the value of the accounts receivable and objectively correlating to the issues after the confirmation of the losses, the original confirmed losses would be reversed and recorded into current gains and losses. However, the reserved book value shall not exceed the amortized costs of the accounts receivable under non-withdrawing impairment circumstance.
11. Inventory
(1) Category of inventory
Inventory mainly includes raw materials, packing materials, self-made semi-manufactured products, goods in process and finished goods, etc.
(2) Pricing method for outgoing inventories
Inventory is priced by actual costs when it is obtained. Inventory costs include procurement costs, processing costs and other costs. Weighted average method is used to price inventory when it is received and delivered.
(3) Recognition basis of net realizable value and withdrawal method of falling price provision for inventories
Net realizable value in daily activity, it is referred to the estimated selling price minus the estimated selling expenses and related tax and fees in normal operating process. When confirming the net realizable value of inventories, the Company shall take the intention of inventories into consideration and influence of issues after balance sheet date.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
On the balance sheet date, the evaluation criteria should base on the lower value between costs and net realizable value. When net realizable value is lower than costs, falling price provision of inventories shall be made. Under normal circumstances, the Company withdraws the falling price provision in according to individual inventory items, but for large quantity and low-unit-price inventories, falling price provision of inventories shall be made based on the category of inventories; for those inventories that relating to the same product line that have similar purposes or end uses, are produced and marketed in the same geographical area, and cannot be practicably evaluated separately from other items in that product line, their falling price provision of inventories shall be consolidated.
After withdrawing the depreciation reserves for inventories, if the factors, which cause any write-down of the inventories, have disappeared, the amount of write-down shall be recovered and reversed from the original amount of depreciation reserve for inventories. The reversed amount shall be included in the profits and losses of the current period.
(4) Inventory system for inventories is perpetual inventory system
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods: one-off amortization method
Packing articles: one-off amortization method
12. Divided as assets held for sale
If a non-current assets could be immediately sold only according to the usual terms of selling this kind of assets under current situation, and the Group has made a decision on disposing a non-current asset, entered into an irreversible transfer agreement with the transferee and the transfer is likely to be completed within one year, the non-current asset is measured as a non-current asset held for sale, which shall not be depreciated or amortized since the date held for sale but shall be measured at the lower one of the net amounts of the book value and the fair value after deducting the disposal expense. Non-current assets held for sale include single-item assets and disposal groups. Where a disposal group is an asset group and the goodwill obtained in the business combination is apportioned to the asset group according to the―Accounting Standard No. 8 for BusinessEnterprises—AssetImpairment‖, or a disposal group is an operation in such an asset group, the disposal group shall include the goodwill in the business combination.
The non-current assets of single amount and the assets among the disposing group that both be divided as assets held for sale, should be listed alone of the current assets on the balance sheet; liabilities related to the assets transfer among the disposing group which be divided as assets held for sale, should be listed alone of the current assets on the balance sheet.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
An asset or an disposal group was classified as held for sale before, but if itcouldn’t meet the recognition conditions for held-for-sale non-current asset later, the Company shall cease to classify it as held for sale, and measure it by the lower amount of the followings: (1) its carrying amount before the asset (or disposal group) was classified as held for sale, adjusted for any depreciation, amortization or impairment before the asset (or disposal group) being classified as held for sale; or (2) its recoverable amount on the date of the subsequent decision not to sell.
13. Long-term equity investments
The long-term equity investments of this part refer to the long-term equity investments that the Company has control, joint control or significant influence over the investees. The long-term equity investment that the Company does not have control, joint control or significant influence over the investees, should be recognized as available-for-sale financial assets or be measured by fair value with the changes should be included in the financial assets accounting of the current gains and losses, and please refer the details of the accounting polices to Notes IV. 9―financialinstrument‖. Joint control, refers to the control jointly owned according to the relevant agreement on an arrangement by the Company and the relevant activities of the arrangement should be decided only after the participants which share the control right make consensus. Significant influence refers to the power of the Company which could anticipate in the finance and the operation polices of the investees, but could not control or jointly control the formulation of the policies with the other parties.
(1) Recognition of investment costs
As for long-term equity investments acquired by enterprise merger, if the merger is under the same control, the share of the book value of theowner’s equity of the merged enterprise, on the date of merger, is regarded as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment and the payment in cash, non-cash assets transferred as well as the book value of the debts borne by the merging party shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger, regard the share of the book value of the shareholder's equity of the merged enterprise on the consolidated financial statement of the ultimate control party as the initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equities of the combined party which respectively acquired through multiple transaction under the same control that ultimately form into
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
the combination of the enterprises under the same control, should be disposed according whether belongs to package deal; if belongs to package deal, each transaction would be executed accounting treatment by the Company as a transaction of acquiring the control right. If not belongs to package deal, it shall, on the date of merger, regard the enjoyed share of the book value of the shareholder's equity of the merged enterprise on the consolidated financial statement of the ultimate control party as the initial cost of the long-term equity investment, and as for the difference between the initial investment cost of the long-term equity investment and sum of the book value of the long-term equity investment before the combination and the book value of the consideration of the new payment that further required on the combination date, should adjust the capital reserve; if the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equity investment held before the combination date which adopted the equity method for accounting, or the other comprehensive income confirmed for the available-for-sale financial assets, should not have any accounting disposal for the moment.
For the long-term investment required from the business combination under different control, the initial investment cost regarded as long-term equity investment on the purchasing date according to the combination cost, the combination costs shall be the sum of the fair values of the assets paid, the liabilities incurred or assumed and the equity securities issued by the Company. The equities of the acquirees which respectively acquired through multiple transaction that ultimately form into the combination of the enterprises under the different control, should be disposed according whether belongs to package deal; if belongs to package deal, each transaction would be executed accounting treatment by the Company as a transaction of acquiring the control right. If not belongs to package deal, the sum of the book value of the original held equity investment of the acquirees and the newly added investment cost should be regarded as the initial investment cost of the long-term equity investment that changed to be accounted by cost method. If the original held equity is calculated by cost method, the other relevant comprehensive income would not have any accounting disposal for the moment. If the original held equity investment is the financial assets available for sale, its difference between the fair value and the book value as well as the accumulative changes of the fair value that include in the other comprehensive income, should transfer into the current gains and losses.
The commission fees for audit, law services, assessment and consultancy services and other relevant expenses occurred in the business combination by the combining party or the purchase party, shall be recorded into current profits and losses upon their occurrence; the transaction expense from the issuance of equity securities or bonds securities which are as consideration for combination by the combining party, should be recorded as the initial amount of equity securities
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
and bonds securities.
Besides the long-term equity investments formed by business combination, the other long-term equity investments shall be initially measured by cost, the cost is fixed in accordance with the ways of gaining, such as actual cash payment paid by the Company, the fair value of equity securities issued by the Company, the agreed value of the investment contract or agreement, the fair value or original carrying amount of exchanged assets from non-monetary assets exchange transaction, the fair value of the long-term equity investments, etc. The expenses, taxes and other necessary expenditures directly related with gaining the long-term equity investments shall also be recorded into investment cost. The long-term equity investment cost for those could execute significant influences on the investees because of appending the investment or could execute joint control but not form as control, should be as the sum of the fair value of the original held equity investment and the newly added investment cost recognized according to the No.22 of Accounting Standards for BusinessEnterprises—Recognition and Measurement of Financial Instrument.
(2) Subsequent measurement and recognition of gains or losses
A long-term equity investment where the investing enterprise has joint control (except for which forms into common operators) or significant influence over the investors should be measured by equity method. Moreover, long-term equity investment adopting the cost method in the financial statements, and which the Company has control on invested entity.
① Long-term equity investment measured by adopting cost method
The price of a long-term equity investment measured by adopting the cost method shall be included at its initial investment cost and append as well as withdraw the cost of investing and adjusting the long-term equity investment. The return on investment at current period shall be recognized in accordance with the cash dividend or profit announced to distribute by the invested entity, except the announced but not distributed cash dividend or profit included in the actual payment or consideration upon gaining the investment.
②Long-term equity investment measured by adopting equity method
If the initial cost of a long-term equity investment is more than the Company's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment is less than the Company's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the difference shall be included in the current profits and losses and the cost of the long-term equity investment shall be adjusted simultaneously.
When measured by adopting equity method, respectively recognize investment income and other comprehensive income according to the net gains and losses as well as the portion of other
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
comprehensive income which should be enjoyed or be shared, and at the same time adjust the book value of the long-term equity investment; corresponding reduce the book value of the long-term equity investment according to profits which be declared to distribute by the investees or the portion of the calculation of cash dividends which should be enjoyed; for the other changes except for the net gains and losses, other comprehensive income and theowners’ equity except for the profits distribution of the investees, should adjust the book value of the long-term equity investment as well as include in the capital reserve. The investing enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of the invested entity after it adjusts the net profits of the invested entity. If the accounting polices adopted by the investees is not accord with that of the Company, should be adjusted according to the accounting policies of the Company and the financial statement of the investees during the accounting period and according which to recognize the investment income as well as other comprehensive income. For the transaction happened between the Company and associated enterprises as well as joint ventures, if the assets launched or sold not form into business, the portion of the unrealized gains and losses of the internal transaction, which belongs to the Company according to the calculation of the enjoyed proportion, should recognize the investment gains and losses on the basis. But the losses of the unrealized internal transaction happened between the Company and the investees which belongs to the impairment losses of the transferred assets, should not be neutralized. The assets launched by the Company to the associated enterprises or the joint ventures if could form into business, the long-term equity investment without control right which acquired by the investors, should regard the fair value of the launched business as the initial investment cost the newly added long-term equity investment, and for the difference between the initial investment cost and the book value of the launched business, should be included into the current gains and losses with full amount. The assets sold by the Company to the associated enterprises or the joint ventures if could form into business, the difference between the acquired consideration and the book value of the business should be included in the current gains and losses with full amount. The assets purchased by the Company to the associated enterprises or the joint ventures if could form into business, should be accounting disposed according to the regulations of No. 20 ofASBE—Business Combination, and should be recognized gains or losses related to the transaction with full amount.
The Company shall recognize the net losses of the invested enterprise until the book value of the long-term equity investment and other long-term rights and interests which substantially form the net investment made to the invested entity are reduced to zero. However, if the Company has the obligation to undertake extra losses, it shall be recognized as the estimated liabilities in accordance
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
with the estimated duties and then recorded into investment losses at current period. If the invested entity realizes any net profits later, the Company shall, after the amount of its attributable share of profits offsets against its attributable share of the un-recognized losses, resume recognizing its attributable share of profits.
For the long-term equity investment held by the Company before the first execution of the new accounting criterion on 1 Jan. 2008 of the associated enterprises and joint ventures, if there is debit difference of the equity investment related to the investment, should be included in the current gains and losses according to the amount of the straight-line amortization during the original remained period.
③ Acquiring shares of minority interest
In the preparation for the financial statements, the balance existed between the long-term equity investment increased by acquiring shares of minority interest and the attributable net assets on the subsidiary calculated by the increased shares held since the purchase date (or combination date), the capital reserves shall be adjusted, if the capital reserves are not sufficient to offset, the retained profits shall be adjusted.
④ Disposal of long-term equity investment
In the preparation of financial statements, the Company disposed part of the long-term equity investment on subsidiaries without losing its controlling right on them, the balance between the disposed price and attributable net assets of subsidiaries by disposing the long-term equity investment shall be recorded intoowners’ equity; where the Company losses the controlling right by disposing part of long-term equity investment on such subsidiaries, it shall treated in accordance with the relevant accounting policies in Note IV. 5 (2) Method on preparation of combined financial statements.
For other ways on disposal of long-term equity investment, the balance between the book value of the disposed equity and its actual payment gained shall be recorded into current profits and losses. For the long-term equity investment measured by adopting equity method, if the remained equity after disposal still adopts the equity method for measurement, the other comprehensive income originally recorded intoowners’ equity should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly disposed by the investees according to the corresponding proportion. Theowners’ equity recognized owning to the changes of the otherowners’ equity except for the net gains and losses, other comprehensive income and the profits distribution of the investees, should be transferred into the current gains and losses according to the proportion. For the long-term equity investment which adopts the cost method of measurement, if the remained equity still adopt the cost method, the other comprehensive income recognized owning to adopting
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
the equity method for measurement or the recognition and measurement standards of financial instrument before acquiring the control of the investees, should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly disposed by the investees and should be carried forward into the current gains and losses according to the proportion; the changes of the otherowners’ equity except for the net gains and losses, other comprehensive income and the profits distribution among the net assets of the investees which recognized by adopting the equity method for measurement, should be carried forward into the current gains and losses according to the proportion.
For those the Company lost the control of the investees by disposing part of the equity investment as well as the remained equity after disposal could execute joint control or significant influences on the investees, should change to measure by equity method when compiling the individual financial statement and should adjust the measurement of the remained equity to equity method as adopted since the time acquired; if the remained equity after disposal could not execute joint control or significant influences on the investees, should change the accounting disposal according to the relevant regulations of the recognition and measurement standards of financial instrument, and its difference between the fair value and book value on the date lose the control right should be included in the current gains and losses. For the other comprehensive income recognized by adopting equity method for measurement or the recognition and measurement standards of financial instrument before the Company acquired the control of the investees, should execute the accounting disposal by adopting the same basis of the accounting disposal of the relevant assets or liabilities directly disposed by the investees when lose the control of them, while the changes of the otherowners’ equity except for the net gains and losses, other comprehensive income and the profits distribution among the net assets of the investees which recognized by adopting the equity method for measurement, should be carried forward into the current gains and losses according to the proportion. Of which, for the disposed remained equity which adopted the equity method for measurement, the other comprehensive income and the otherowners’ equity should be carried forward according to the proportion; for the disposed remained equity which changed to execute the accounting disposal according to the recognition and measurement standards of financial instrument, the other comprehensive income and the otherowners’ equity should be carried forward in full amount.
For those the Company lost the control of the investees by disposing part of the equity investment, the disposed remained equity should change to calculate according to the recognition and measurement standards of financial instrument, and difference between the fair value and book value on the date lose the control right should be included in the current gains and losses. For the
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
other comprehensive income recognized from the original equity investment by adopting the equity method, should execute the accounting disposal by adopting the same basis of the accounting disposal of the relevant assets or liabilities directly disposed by the investees when terminate the equity method for measurement, while for theowners’ equity recognized owning to the changes of the otherowner’s equity except for the net gains and losses, other comprehensive income and the profits distribution of the investees, should be transferred into the current investment income with full amount when terminate adopting the equity method.
The Company respectively disposes the equity investment of the subsidiaries through multiple transactions until lose the control right, if the above transactions belongs to the package deal, should execute the accounting disposal by regarding each transaction as a deal of disposing the equity investment of the subsidiaries until lose the control right, while the difference between each expenses of the disposal and the book value of the long-term equity investment in accord with the disposed equity before losing the control right, should firstly be recognized as other comprehensive income then be transferred into the current gains and losses of losing the control right along until the time when lose it.
14. Investment property
Investment property is held to earn rentals or for capital appreciation or for both. Investment property includes leased or ready to transfer after capital appreciation land use rights and leased buildings. Besides, for the idle constructions held by the Company for operation and lease, if the Board of Directors (or the similar institutions) made the written resolutions which affirmatively disclosed to use which for operation and lease with the intention would not change in the short term, should also be presented as the investment property.
Investment property is initially measured at cost. Subsequent expenditures related to an investment real estate are likely to flow about the economic benefits of the asset and its cost can be measured reliably, is included in the cost of investment real estate. Other subsequent expenditures of gains or losses should be recorded in the current gains and losses when occurred.
The Company uses the cost model for subsequent measurement of investment property, and in accordance with the depreciation or amortization of buildings or land use rights policy.
Investment property impairment test method and impairment accrual method described in Note IV. 20―Long-term assetsimpairment‖.
Occupied real estate for investment property or investment property is transferred to owner-occupied real estate or stock conversion as the recorded value after the conversion, according to the book value before the conversion.
From the date of transference, investment properties shall be transferred into fixed assets or
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
intangible assets when investment properties transfer into self-owned properties. From the date of transference, fixed assets or intangible assets shall be transferred into investment properties when the intention of self-owned properties changes to be earning rents. Upon transference, investment properties using cost modeling shall use its book value before transference as the entry value after transference; investment properties using fair value shall use its fair value in the date of transference as the entry value after transference.
As for investment property disposed or perpetually out of use, and estimated without economic benefits from the disposal, confirmation shall be terminated. Disposal consideration of the investment property after sale, transference, discard or damage deducting its book value and relating taxes shall be recorded into current gains and losses.
15. Fixed assets
(1) Recognized standard of fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake of producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal year.
(2) Depreciation methods of fixed assets
The initial measurement of a fixed asset shall be made at its cost after considering the effect of expected discard expenses. The Group shall withdraw the depreciation of fixed assets by adopting the straight-line method since the second month of its useful life. Useful life, expected net salvage value (refers to the expected amount that the Group may obtain from the current disposal of a fixed asset after deducting the expected disposal expenses at the expiration of its expected useful life) and annual depreciation rate of each fixed assets are as below:
Expected net
Annual deprecation Category of fixed assets Method Useful life (Y) salvage value
(%)(%)
Average method of
Housing and building
8-35 3-5 2.7-12.1 useful life
Average method of
Machinery equipments
8-10 3-5 9.5-12.1 useful life
Average method of
4 3 24.25 Transportation vehicle
useful life
Average method of
3 3 32.33 Office equipment and others
useful life
Expected net residual value of fixed assets is the balance of the Company currently obtained from the disposal of the asset less the estimated costs of disposal amount, assuming the asset is out of
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
useful life and state the expected service life in the end.
(3) Measurement and recognition of fixed assets impairment
Impairment and provisions of fixed assets are disclosed on Note IV. 20―Long-term assetsimpairment‖.
(4) Fixed Assets under finance leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. Title may or may not eventually be transferred.
Fixed assets that are held under finance leases shall be depreciated by applying the same policy as that for the fixed assets owned by the Company. If it can be reasonably determined that the ownership of the leased assets can be obtained at the end of the lease period, the leased assets are depreciated over their useful lives; otherwise, the leased assets are depreciated over the shorter of the lease terms and the useful lives of the leased assets.
(5) Others
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow to the Company and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of the component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be recognized in profit or loss in the period in which they are incurred.
The revenue from selling or transferring, or disposing a fixed asset is booked into profit and loss after deduction of carrying value and related tax.
The Company conducts a review of useful life, expected net realizable value and depreciation methods of the fixed asset at least on an annual base. Any change is regarded as change in accounting estimates.
16. Construction in progress
Construction in progress is measured at its actual cost. The actual costs include various construction expenditures during the construction period, borrowing costs capitalized before it is ready for intended use and other relevant costs. Construction in progress is transferred to a fixed asset when it is ready for intended use.
Testing method for provision impairment of construction in progress and accrued method for provision impairment please refer to Note IV. 20―Long-term assetsimpairment‖.
17. Borrowing costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings,
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
ancillary costs incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized. The amounts of other borrowing costs incurred are recognized as an expense in the period in which they are incurred. Qualifying assets are asset (fixed assets, investment property and inventories, etc.) that necessarily take a substantial period of time for acquisition, construction or production to get ready for their intended use or sale.
Where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds.
Where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of accumulated expenditure on the asset over and above the amounts of specific-purpose borrowings.
During the capitalization period, exchange differences related to a specific-purpose borrowing denominating in foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the period in which they are incurred. Assets qualified for capitalization are the fixed assets, investment properties or inventories which need a long time of construction or production activities before ready for intended used or sale. Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the current period until the acquisition, construction or production is resumed.
18. Intangible assets
(1) Intangible asset
The term―intangibleasset‖ refers to the identifiable non-monetary assets without physical shape, possessed or controlled by enterprises.
The intangible assets are initially measured by its cost. Expenses related to intangible assets, if the economic benefits related to intangible assets are likely to flow into the enterprise and the cost of intangible assets can be measured reliably, shall be recorded as cost of intangible assets. The expenses other than this shall be booked in the profit or loss when they occur.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Land use rights that are purchased by the Company are accounted for as intangible assets. Buildings, such as plants that are developed and constructed by the Company, and relevant land use rights and buildings, are accounted for as intangible assets and fixed assets, respectively. Payments for the land and buildings purchased are allocated between the land use rights and the buildings; if they cannot be reasonably allocated all of the land use rights and buildings should accounted for as fixed assets.
When an intangible asset with a definite useful life is available for use, its original cost less net residual value and any accumulate impairment losses is amortized over its estimated useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortized. For an intangible asset with a definite useful life, the Company reviews the useful life and amortization method at the end of the period, and makes adjustment when necessary. An additional review is also carried out for useful life of the intangible assets with indefinite useful life. If there is evidence showing the foreseeable limit period of economic benefits generated to the enterprise by the intangible assets, then estimate its useful life and amortize according to the policy of intangible assets with definite useful life.
(2) Research and development cost
Cost of research and development is distinguished into the research phase and the development phases.
Cost of the research phase is recognized in the profit or loss in the period in which it is incurred. Unless the following conditions are satisfied, cost of the development phase is recognized in the profit or loss in the period in which it is incurred:
① it is technically feasible to complete the intangible asset so as to use it or sell it;
② it is clearly invented to complete the intangible asset in order to use it or sell it;
③ it is probable that the intangible asset is capable of generating future economic benefit, such as the market for the product produced by the intangible asset or the intangible asset itself, it is objectively evidential that the intangible asset is economically usable if it is going to be used internally;
④ there are sufficient technical, financial and other resources to complete the intangible asset and to use it or sell it;
⑤ the cost of the development of the intangible can be measured reliably.
If the cost cannot be distinguished into the search phase and the development phase, it is recognized in the profit or loss for the period in which it is incurred.
(3) Impairment of intangible assets
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Impairment and provisions of intangible assets are disclosed on Note IV. 20―Long-term assetsimpairment‖.
19. Long-term deferred expenditure
An item long-term deferred expenses is an expense which has been incurred and which has a beneficial period (a period during which an expense is expected to bring economic benefits to an entity) which is longer than one year and which includes at least part of the reporting period during which the expense was incurred and subsequent reporting periods. An item of long-term deferred expenses is recognized at the actual amount of the expense incurred and allocated in each month of the beneficial period using the straight line method.
20. Long-term assets impairment
Non-financial assets with non-current nature include fixed assets, construction in progress, intangible assets with definite useful lives, investment properties measured by cost methods and long-term equity investment on subsidiaries, jointly operations. The Company assesses whether there are any indicators of impairment for all non-financial assets at the balance sheet date, and impairment test is carried out and recoverable value is estimated if such an indicator exits. Goodwill and intangible assets with indefinite useful lives, as well as intangible assets not ready for use, are tested for impairment annually regardless of indicators of impairment.
Impairment of loss is calculated and provisions taken by the difference if the recoverable value of the assets is lower than the book value. The recoverable value is the higher of estimated present value of the future expected cash flows from the asset and net fair value of the asset less disposed cost. The fair value of asset is determined by the sales agreement price within anarm’s length transaction. In case there is no sales agreement, but there is active market of assets, the fair value can be determined by the selling price. If there is neither sales agreement nor active market, the fair value of the asset can be estimated based on the best information obtained.
Disposal expenses include expenses related to the legislation, taxes, transportations and the direct expense for the asset to be ready for sale. When calculating the present value of expected future cash flows from an asset or asset Group, the management shall estimate the expected future cash flows from the asset or asset Group and choose a suitable discount rate in order to calculate the present value of those cash flows.
Provision for asset impairment is calculated and determined on the individual basis. If the recoverable of individual asset is hard to estimate, the recoverable amount can be determined by the asset Group where subject asset belongs. Asset Group is the smallest set of assets that can have cash flow in independently.
The Company determines whether goodwill is impaired at least on an annual basis. This requires an
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
estimation of the present value of the future expected cash flows from the asset Groups or sets of asset Groups to which the goodwill is allocated. Estimating the present value requires the Company to make an estimate of the expected future cash flows from the asset Groups or sets of asset Groups and also choose a suitable discount rate in order to calculate the present value of those cash flows. Once the loss from above asset impairment is recognized, the recoverable part cannot be reserved in the subsequent periods.
21. Payroll
The payroll of the Company mainly includes the short-term employee compensation, welfare after demission, demission welfare and other long-term employee benefits. Of which:
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and benefits, medical insurance premiums, birth insurance premium, industrial injury insurance premium, housing fund, labour union expenditure and personnel education fund, non-monetary benefits etc. The short-term compensation actually happened during the accounting period when the active staff offering the service for the Group should be recognized as liabilities and is included in the current gains and losses or relevant assets cost. Of which the non-monetary benefits should be measured according to the fair value.
Welfare after demission mainly includes setting drawing plan. Of which setting the drawing plan mainly includes basic endowment insurance, unemployment insurance and annuity etc, and the corresponding payable and deposit amount should be included into the relevant assets cost or the current gains and losses when happen.
If an enterprise cancels the labour relationship with any employee prior to the expiration of the relevant labour contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a layoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier date between the time when the Group could not one-sided withdraw the demission welfare which offered by the plan or layoff proposal owning to relieve the labour relationship and the date the Group recognizes the cost related to the reorganization of the payment of the demission welfare and at the same time includes which into the current gains and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report within 12 months, should be disposed according to other long-term payroll payment.
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare. The group would recorded the salary and the social security insurance fees paid and so on from theemployee’s service terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under the condition that they meet the recognition
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be accounting disposed according to the setting drawing plan, while the rest should be disposed according to the setting revenue plan.
22. Estimated liabilities
Recognition of accrued liabilities:
Obligation with contingency factor such as external hypothecate, lawsuit or arbitrage in dispute, guarantee on quality of product, cut-down plan, loss of contract, recombine obligation, obligation on abandon fixed asset, and meet the follow condition simultaneously would determined as liabilities: (1) This obligation is current obligation of the Company; and, (2) The performance of this obligation will probably cause economic benefits outflow of the Company; and, (3) The amount of this obligation can be reliably measured.
On balance sheet date the Company performed relate obligation that consider risk, incertitude, time value of currency of contingency factor. According to the best estimate of the expenditure required to settle the present obligation for estimated liabilities measured.
If the expenditure required to settle the liability is expected to be fully or partly compensated by a third party, to determine the amount of compensation will be received at the basic, separately recognized as an asset, and is recognized in the amount of compensation does not exceed the carrying value of estimated liabilities.
23. Revenues
(1) Commodity sales revenues
No revenue from selling goods may be recognized unless the following conditions are met simultaneously: the significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise; the enterprise retains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods; the relevant amount of revenue can be measured in a reliable way; the relevant economic benefits may flow into the enterprise; and the relevant costs incurred or to be incurred can be measured in a reliable way. In theCompany’s daily accounting practices, as for the domestic sales, when the products had shipped out of the library and had handed over to the buyers, and the major risk as well as the reward on the ownership of the products had transferred to them, without keeping any continued management right which commonly related to the ownership nor carrying out any effective control of the products which had been sold, and at the same time the amounts received could be calculated reliably, and the relevant economic interest may flow into the enterprise, as well as the relevant
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
costs which had occurred or is going to occur could be calculated reliably, should recognize the implementation of the commodity sales revenues. As for the overseas sales, should recognize the implementation of the revenues when the goods had made shipment and gained the customs export declaration.
(2) Revenues from providing labor services
If an enterprise can reliably estimate the outcome of a transaction concerning the labor services it provides, it shall recognize the revenue from providing services employing the percentage-of-completion method on the balance sheet date. The percentage-of-completion is determined by the proportion of the costs incurred against the estimated total costs.
The outcome of a transaction concerning the providing of labor services can be measured in a reliable way, means that the following conditions shall be met simultaneously:① The amount of revenue can be measured in a reliable way;② The relevant economic benefits are likely to flow into the enterprise;③ The schedule of completion under the transaction can be confirmed in a reliable way;④ The costs incurred or to be incurred in the transaction can be measured in a reliable way.
If the Company can not measure the result of a transaction concerning the providing of labor services in a reliable way, it shall be conducted in accordance with the following circumstances, respectively: If the cost of labor services incurred is expected to be compensated, the compensation amount for the cost of labor services shall be recognized as the revenue from providing labor service, and the cost of labor service incurred shall be as the current cost; if the cost of labor services incurred is not expected to compensate, no revenue from the providing of labor services may be recognized.
Where a contract or agreement signed between Group and other enterprises concerns selling goods and providing of labor services, if the part of sale of goods and the part of providing labor services can be distinguished from each other and can be measured respectively, the part of sale of goods and the part of providing labor services shall be treated respectively. If the part of selling goods and the part of providing labor services can not be distinguished from each other, or if the part of sale of goods and the part of providing labor services can be distinguished from each other but can not be measured respectively, both parts shall be conducted as selling goods.
(3) Royalty revenue
In accordance with relevant contract or agreement, the amount of royalty revenue should be recognized as revenue on accrual basis. In theCompany’s daily accounting practices, it should be calculated and recognized according to the chargeable time and methods in accordance with the relevant contract or agreement.
(4) Interest revenue
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
In accordance with the time that others use theGroup’s monetary capital and the actual rate.
24. Government subsidies
Government grants are transfer of monetary assets and non-monetary assets from the government to the Company at no consideration, excluding the capital invested by the government as equity owner. Government grant can be classified as grant related to the assets and grants related to the income. The government grants which were acquired by the Company will be used to purchase or otherwise form become long-term assets will be defined as grant related to the assets; the others will be defined as grants related to the income. If the files have not clearly defined government grants objects, it will be divided in the following manner compartmentalize the grants into rant related to the assets and grants related to the income: (1) government documents defined specific projects targets, according to the relative proportion of the budgets of specific items included the expenditure of to form assets and the expenditure will be charged into expense to be divided, the division ratio required at each balance sheet date for review and make changes if necessary; (2) government documents to make a general presentation purposes only, does not specify a particular project, as grants related to the income.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A government grant measured at a nominal amount is recognized immediately in profit or loss for the period.
When received the government grants actually, recognized and measured them by the actual amount received. However, there is strong evidence that the end of fiscal support policies able to meet the conditions specified in the relevant funds are expected to be able to receive financial support, measured at the amount receivable. Government grants are measured according to the amount receivable shall also comply with the following conditions: (1) grants receivable of government departments issued a document entitled have been confirmed, or could reasonably estimated in accordance with the relevant provisions of its own official release of financial resources management approach, and the expected amount of a material uncertainty which does not exist; (2) it is based on the local financial sector to be officially released and financial support for the project and its financial fund management approach voluntarily disclosed in accordance with the provisions of―Regulations on Disclosure GovernmentInformation‖, and the management approach should be (inclusive of any compliance business conditions may apply), and not specifically formulated for specific businesses;(3) related grants approval has been clearly committed the deadline, and is financed by the proceeds of a corresponding budget as a guarantee, so that will be received within the prescribed period with the a reasonable assurance; (4) according to the specific circumstances of the Company and the subsidy matter, should satisfy the other conditions (if any).
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset. For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent period, the grant is recognized as deferred income, and recognized in profit or loss over the periods in which the related costs are recognized. If the grant is a compensation for related expenses or losses already incurred, the grant is recognized immediately in profit or loss for the period.
For repayment of a government grant already recognized, if there is a related deferred income, the repayment is offset against the carrying amount of the deferred income, and any excess is recognized in profit or loss for the period. If there is no related deferred income, the repayment is recognized immediately in profit or loss for the period.
25. Deferred tax assets and deferred tax liabilities
(1) Income tax for the current period
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, according to the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, current income tax liabilities or assets for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws. The calculation for income tax expenses in the current period is based on the taxable income according to the related tax laws after adjustment to the accounting profit of the reporting period. (2) Deferred income tax assets and liabilities
For temporary differences between the carrying amount of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
For temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.
For taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, no deferred income tax liability related is recognized except where the Company is able to control the timing of reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
All deferred income tax liabilities arising from taxable temporary differences except the ones
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
mentioned above are recognized.
For temporary deductible differences associated with the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset is recognized. For taxable temporary deductible differences associated with investments in subsidiaries and associates, and interests in joint ventures, no deferred income tax asset related is recognized if it is impossible to reversal the temporary difference in the foreseeable future, or it is not probable to obtain taxable income which can be used for the deduction of the temporary difference in the future. Except mentioned above, the Company recognizes other deferred income tax assets that can deduct temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized.
For the deductible losses and tax credit that can be carried forward, deferred tax assets for deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates according to tax laws, which are expected to apply in the period in which the asset is realized or the liability is settled.
At the balance sheet date, the Company reviews the carrying amount of deferred tax assets. If it is no longer probable that sufficient taxable profit will be available in future periods to allow the benefits of the deferred tax assets to be used, the Company reduces the carrying amount of deferred tax assets. The amount of such reduction is reversed when it becomes probable that sufficient taxable profit will be available.
(3) Income tax expenses
Income tax expenses consist of current income tax and deferred income tax.
The expenses from income tax and deferred income tax, as well as the revenue, shall be recorded into profit or loss in current accounting period, except expense for income tax of the current period and deferred income tax that booked into other income or equity and adjusted carrying value of deferred income tax goodwill arose from business combination.
(4) Income tax offset
When we have the legal right, and have intended to, to make settlement with net amount or through the asset acquisition and liability fulfillment simultaneously, the Company shall present the net value from the offset between current income tax asset and current income tax liability in the financial statement.
When the Company has the legal right to make a settlement with the current income tax asset and current income tax liability, and the deferred income tax asset and deferred income tax liability are
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
related to the same taxable subject under the same tax payer, or related to different taxable subject, but the intension of net value settlement in regard of the current income tax asset and current income tax liability, the Company shall present net value after the offset of deferred income tax asset and deferred income tax liability.
26. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. Title may or may not eventually be transferred. An operating lease is a lease other than a finance lease.
(1) The Company as Lessee under operating Lease
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either included in the cost of the related asset or charged to profit or loss for the current period. The contingent rents shall be recorded in the profit or loss of the period in which they actually arise.
(2) The Company as Leaser under operating Lease
Lease income from operating leases shall be recognized by the leaser in profit or loss on a straight-line basis over the lease term. Initial direct cost of significance in amount shall be capitalized when incurred. If another basis is more systematic and rational, that basis may be used. Contingent rents are credited to profit or loss in the period in which they actually arise.
(3) The Company as Lessee under financing Lease
For an asset that is held under a finance lease, at the lease commencement, the leased asset is recorded at the lower of its fair value at the lease commencement and the present value of the minimum lease payments, and the minimum lease payment is recorded as the carrying amount of the
long-term payables; the difference between the recorded amount of the leased asset and the recorded amount of the payable is accounted for as unrecognized finance charge, Initial direct costs incurred by the lessee during the process of negotiating and securing the lease agreement shall be added to the amount recognized for the leased asset.
The net amount of minimum lease payment deducted by the unrecognized finance shall be separated into long-term liabilities and long-term liability within one year for presentation.
Unrecognized finance charge shall be computed by the effective interest method during the lease term. Contingent rent shall be booked into profit or loss when actually incurred.
(4) In the case of the lessor of a financing lease
For an asset that is leased out under a finance lease, the aggregate of the minimum lease receipts at the inception of the lease and the initial direct costs is recorded as a finance lease receivable, and unguaranteed residual value is recorded at the same time; the difference between the aggregate of
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
the minimum lease receipt, initial direct costs, and unguaranteed residual value, and the aggregate of their present values, is recognized as unearned finance income, which is amortized using the effective interest rate method over each period during the lease term.
Finance lease receivable less unearned finance income shall be separated into long-term liabilities and long-term liability within one year for presentation.
Unearned finance income shall be computed by the effective interest method during the lease term. Contingent rent shall be credited into profit or loss in which actually incurred.
27. Changes in main accounting policies and estimates
(1) Change of accounting policies
There was no any change of accounting policies
(2) Change of main accounting estimates
There was no any change of main accounting estimates.
28. Significant account judgment and estimates
The Company is required to make judgments, estimates and assumptions about the carrying amounts of items in the financial statements that cannot be measured accurately, due to the internal uncertainties of operation activities. These judgments, estimates and assumptions are based on historical experiences of theCompany’s management as well as other factors that are considered to be relevant. These judgments, estimates and assumptions may affect value of the financial statements in revenue, expenses, assets and liabilities and the disclosure of contingency at the balance sheet date. However, the result derived from those uncertainties in estimates may lead significant adjustments to the carrying amounts of the assets or liabilities affected in the future. The Company has reviews the judgments, estimates and assumptions regularly on the basis of going concern. Where the changes in accounting estimates only affect the period when changes occurred, and they are recognized within the same period. Where the changes in accounting estimates affect both current period and future period, the changes are recognized within the period of change and future period.
At balance sheet date, the followings are the significant areas where the Company needs to make judgment, estimates and assumptions over the value of items in the financial statements:
(1) Classification of lease
The Company classifies leases as operating lease and financing lease according to the rule stipulated in the Accounting Standard for Business Enterprises No.21—Leasing. The management shall make analysis and judgment on whether the risks and rewards related to the title of leased assets has been transferred to the leaser, or whether the Company has substantially held the risks and rewards related to the ownership of leased assets.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
(2) Allowance for bad debt
According to the relevant accounting policies of the Company in receivables, allowance method is used for baddebt’s calculation. The impairment of receivables is calculated based on the assessment of recoverable of receivables. Assurance of receivable impairment needs judgments and estimations from the management. The difference between actual results and original estimates shall have impact on the carrying amount of receivables and receivable bad debt provisions or the reverse during the change of estimation.
(3) Impairment of inventories
The Company measures inventories by the lower of cost and realizable net value according to the accounting policies in regard of inventories and provisions for decline in value of inventories are made if the cost is higher than their net realizable value and obsolete and slow-movement inventories. Inventories decline in value to net realizable value is the estimated selling price in the ordinary course of business. Net realizable value is determined on the basis of clear evidence obtained, and takes into consideration the purposes of holding inventories and effect of post balance sheet events. The difference between the actual result and the original estimates shall have impact on reverse of the carrying amount of the inventories and their decline in value or provisions during the period of change.
(4) The fair value of financial instruments
For a financial instrument which has no active market, the Company establishes fair value by using various valuation methods, including of discounted cash flow analysis model. The Company needs to estimate future cash flow, credit risk, volatility and relationship during the valuation and choose appropriate discount rate. Such assumptions have uncertainties and their changes shall have impact on the fair value of financial instruments.
(5) Impairment of financial assets available-for-sale
The Company determine the available-for-sale financial asset is impaired relies on judgments and assumptions of management, to determine whether impairment loss is recognized in the income statement. The process of making the judgments and assumptions, the Company is required to assess the extent and duration of the fair value of the investment below cost, as well as investment financial position and short-term business outlook, including industry conditions, technological change, the credit rating, default rates and counterparty risk.
(6) Impairment of non-financial, non-current assets
The Company assesses whether there are any indicators of impairment for all non-current assets other than financial assets at the balance sheet date. For an intangible asset that has indefinite useful life, impairment test is made in addition to the annual impairment test if there is any indication of impairment. For non-current assets other than financial assets, impairment test is made when there
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
is any indication that its account balance cannot be recovered.
Impairment exists when the recoverable amount of an asset is the higher of its fair value less cost of disposal and present value of the future cash flows expected to be derived from the asset.
Net value between the difference of fair value and disposal cost is determined by reference of the price of similar product in a sale agreement in anarm’s length transaction or an observable market price less the additional cost directly attributable to the disposal of the asset.
When estimating the present value of future cash flow, significant judgments are made over theasset’s production, selling price and relevant operating expenses, and discount rate used to calculate present value. All available materials that are considered to be relevant shall be used in the estimation of recoverable value. These materials include estimations of production, selling price and operating expenses based on reasonable and supportable assumptions.
The Company makes an impairment test for goodwill at least at each year end. This requires an estimation of present value of future cash flow of the assets or assets group where goodwill has been allocated. The Company shall makes estimation on the future cash flow derived from assets or assets group and determine an appropriate discount rate for the present value of future cash flow when the estimation of present value of future cash flow is made.
(7) Depreciation and amortization
Investment property, fixed assets and intangible assets are depreciated and amortized using the straight-line method over their useful lives after taking into account residual value. The useful lives are regularly reviewed to determine the depreciation and amortization costs charged in each reporting period. The useful lives are determined based on historical experience of similar assets and the estimated technical changes. If there is an indication that there has been a change in the factor used to determine the depreciation or amortization, the rate of depreciation or amortization is revised.
(8) Deferred tax assets
The group shall recognize all unused tax losses as deferred tax assets to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. This requires the management of the Company make a lot of judgments over the estimation of time period, value and tax planning strategies when future taxable profit incurs so that the value of deferred tax assets can be determined.
(9) Income tax
There are some transactions where ultimate tax treatments and calculations have uncertainties in theCompany’s everyday operation. If it is possible for any item to make expenditure before tax that needs to be approved from competent tax authorities. If there is any difference between finalized determination value and their initial estimations value, the difference shall have the impact on the
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
income tax and deferred income tax of the current period during the final determination.
(15) Accrued liabilities
According with the terms of the contract, the existing knowledge and historical experience, product quality assurance and expected contract losses, delay in delivery of liquidated damages are estimated and recognized as accrued liabilities. In these matters has been the formation of a current obligation, and fulfilling the duty is likely to lead to the outflow of economic benefits of the Company, the Company or the best estimate of the current obligation expenditure required recognized as a accrued liabilities. Recognition and measurement of accrued liabilities is dependent on the judgment of management. In the processing of judgment the company needed to appraise the related risks, uncertainties and time value of money and other factors.
VII. Taxation
1. Main taxes and tax rate
Category of taxes Particulars about specific tax rate
Income tax was in accordance with17% of tax rate to calculate output tax, and VAT according to the balance of the current the deductibility deduct the input tax to calculate value added tax.
Sales of wine per 1000 ml or per kg 1 Yuan to calculate the amount of consumption tax, Consumption tax a flat rate,20% of the annual turnover to calculate the amount of consumption tax at valorem.
Business Tax 5% of turnover tax payable.
Urban maintenance and construction tax 1, 5,7% of the actual taxable turnover amount.
Education expenses surcharge 3% of the actual taxable turnover amount.
Local education surcharge 2% of the actual taxable turnover amount.
Enterprise income tax 25% of the actual taxable turnover amount.
VIII. Notes on major items in consolidated financial statements of the Company
The following notes (including notes on major items in consolidated financial statements of the Company), unless otherwise noted, the opening period was 1st Jan. 2015, the closing period was 30 Jun. 2015, this period referred to 1st Jan-30 Jun. 2015, and last period referred to 1st Jan-30 Jun. 2014.
1. Monetary funds
Item Closing balance Opening balance
Cash in treasury 367,649.75 349,833.07 Bank deposit 924,353,716.95 713,744,608.33
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Closing balance Opening balance
Other monetary funds 9,507,386.21 4,366,001.39 Total 934,228,752.91 718,460,442.79 Of which: the total amount deposited in
0.00 0.00 overseas
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Item Closing balance Opening balance
Tradable financial assets 414,875.36 303,919.60 Of which: equity instruments
414,875.36 303,919.60 investment
Total 414,875.36 303,919.60 3. Notes receivable
(1) Category of notes receivable
Item Closing balance Opening balance
Bank acceptance bill 773,020,909.81 505,893,430.66 Total 773,020,909.81 505,893,430.66 (2) Notes receivable pledged by the Company at the period-end
Item Amount
Bank acceptance bill 220,924,000.00 Total 220,924,000.00 (3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end
Amount of recognition termination at the Amount of not terminated recognition at Item
period-end the period-end
Bank acceptance bill 395,557,755.25 0.00 Total 395,557,755.25 0.00 4. Accounts receivable
(1) Accounts receivable disclosed by category
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Closing balance
Book balance Bad debt provision
Category
Withdrawal
Proportion
Book value Amount Amount proportion
(%)
(%)
Accounts receivable with significant
single amount and individually 0.00 0.00 0.00 0.00 0.00 withdrawn bad debt provision
Accounts receivable withdrawn bad debt
provision according to credit risks
6,816,979.47 100.00 1,045,865.91 15.34 5,771,113.56 characteristics
Accounts receivable with insignificant
single amount for which bad debt
0.00 0.00 0.00 0.00 0.00 provision separately accrued
Total
6,816,979.47 100.00 1,045,865.91 15.34 5,771,113.56 (Continued)
Opening balance
Book balance Bad debt provision
Category Withdrawal
Proportion
Book value Amount Amount proportion
(%)
(%)
Accounts receivable with significant
single amount and individually 0.00 0.00 0.00 0.00 0.00 withdrawn bad debt provision
Accounts receivable withdrawn bad debt
provision according to credit risks
5,393,735.97 100.00 1,055,782.71 19.57 4,337,953.26 characteristics
Accounts receivable with insignificant
single amount for which bad debt
0.00 0.00 0.00 0.00 0.00 provision separately accrued
Total
5,393,735.97 100.00 1,055,782.71 19.57 4,337,953.26 In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion(%) Within 1 year
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion(%)[Including: within 6months] 4,936,939.15 49,369.39 1[7 months to 1year] 381,351.43 19,067.57 5 Subtotal of within 1 year 5,318,290.58 68,436.96 1.29 1 year to 2 years 361,932.00 36,193.20 10 2 years to 3 years 391,042.28 195,521.14 50 Over 3 years 745,714.61 745,714.61 100 Total 6,816,979.47 1,045,865.91 15.34 (2) Accounts receivable withdraw, reversed or collected during the reporting period
The amount of the reversed or collected part during the reporting period was of RMB 9,916.80. (3) The actual write-off accounts receivable
There was no any actual write-off account receivable.
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party The total amount of the top5 of the closing balance of the accounts receivable colleted according to the arrears party during the reporting period of the Company was of RMB 2,321,280.45 which covered34.05% of the total amount of the closing balance of the accounts receivable and the corresponding total amount of the closing balance of the withdrawn bad debt provision was of RMB 450,247.66.
5. Prepayment
(1) List by aging analysis
Closing balance Opening balance
Aging
Amount Proportion(%) Amount Proportion(%) Within 1 year 59,118,017.65 99.96 35,406,358.00 99.14 1 to 2 years 14,092.60 0.03 163,485.98 0.46 2 to 3 years 5,174.00 0.01 141,774.00 0.40 Total 59,137,284.25 100.00 35,711,617.98 100.00 (2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target The total amount of the top 5 of the closing balance of the prepayment colleted according to the prepayment target of the Company was of RMB 25,670,906.52 which covered43.41% of the total amount of the closing balance of the prepayments.
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
6. Interest receivable
Item Closing balance Opening balance
Structured deposits interest 2,369,097.21 4,274,666.66 Total 2,369,097.21 4,274,666.66 8. Other accounts receivable
(1) Other accounts receivable disclosed by category
Closing balance
Book balance Bad debt provision
Category
Withdrawal
Proportion
Book value Amount Amount proportion
(%)
(%)
Other accounts receivable with significant
single amount and individually withdrawn 50,727,440.55 82.60 50,727,440.55 100.00 0.00 bad debt provision
Other accounts receivable withdrawn bad
debt provision according to credit risks
10,688,508.62 17.40 319,307.39 2.99 10,369,201.23 characteristics
Other accounts receivable with
insignificant single amount for which bad
0.00 0.00 0.00 0.00 0.00 debt provision separately accrued
Total 61,415,949.17 100.00 51,046,747.94 83.12 10,369,201.23 (Continued)
Opening balance
Book balance Bad debt provision
Category
Withdrawal
Proportion
Book value Amount Amount proportion
(%)
(%)
Other accounts receivable with significant
single amount and individually withdrawn 50,727,440.55 85.92 50,727,440.55 100.00 0.00 bad debt provision
Other accounts receivable withdrawn bad
debt provision according to credit risks
8,310,068.17 14.08 342,164.93 4.12 7,967,903.24 characteristics
Other accounts receivable with 0.00 0.00 0.00 0.00 0.00
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Opening balance
Book balance Bad debt provision
Category
Withdrawal
Proportion
Book value Amount Amount proportion
(%)
(%)
insignificant single amount for which bad
debt provision separately accrued
Total 59,037,508.72 100.00 51,069,605.48 86.50 7,967,903.24① Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
Accounts receivable (classified by units) Closing balance
Bad debt Withdraw Withdraw reason Other accounts
provision proportion(%)
receivable
The enterprise entered into Jianqiao Securities
11,840,500.00 11,840,500.00 100.00
bankruptcy and settlement procedure
The enterprise entered into Hengxin Securities
29,502,438.53 29,502,438.53 100.00
bankruptcy and settlement procedure
The enterprise entered into Minfa Securities Co., Ltd.
9,384,502.02 9,384,502.02 100.00
bankruptcy and settlement procedure
Total
50,727,440.55 50,727,440.55
① Other accounts receivable that provision for bad debts by aging analysis
Closing balance
Aging
Bad debt provision Withdraw proportion(%) Other accounts receivable
Within 1 year
[Including: within 6months] 9,288,574.41 92,885.74 1[7 months to 1year] 896,035.62 44,801.78 5 Subtotal of within 1 year 10,184,610.03 137,687.52 1.35 1 year to 2 years 281,536.27 28,153.63 10 2 years to 3 years 137,792.16 68,896.08 50 Over 3 years 84,570.16 84,570.16 100
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Closing balance
Aging
Bad debt provision Withdraw proportion(%) Other accounts receivable
Total 10,688,508.62 319,307.39 2.99 (2) Other accounts receivable withdraw, reversed or collected during the reporting period
The amount of the reversed or collected part during the reporting period was of RMB 22,857.54. (3) The actual write-off other accounts receivable
There was no any write-off other account receivable during the reporting period.
(4) List of other accounts receivable classified by nature
Nature Closing book value Opening book value Investment securities 50,727,440.55 50,727,440.55 Cash deposit and cash pledge
4,997,666.77 1,786,964.87 Travel cash advance 3,088,898.54 3,772,242.50 Rent and water steam fees
850,866.10 903,964.37 Other 1,751,077.21 1,846,896.43 Total 61,415,949.17 59,037,508.72 (5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
Proportion of the total Closing Name of units Nature Closing balance Aging closing balance of the other balance of bad accounts receivable(%) debt provision No. 1 Investment securities 29,502,438.53
Over 3 years
48.04 29,502,438.53 No. 2 Investment securities 11,840,500.00
Over 3 years
19.28 11,840,500.00 No. 3 Investment securities 9,384,502.02
Over 3 years
15.28 9,384,502.02 Contract money and cash
No. 4 2,304,249.00
Within 6 months
3.75 23,042.49 pledge
Contract money and cash
No. 5 689,658.09
With7-12months
1.12 34,482.90 pledge
Total 53,721,347.64 87.47 50,784,965.94 8. Inventory
(1) Category of inventory
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Closing balance
Item
Book balance Falling price reserves Book value
Raw materials& wrappage 80,400,225.48 8,870,480.03 71,529,745.45 Homemade semi-finished products and
1,098,185,795.24 0.00 1,098,185,795.24 products in process
Finished products 85,669,702.89 7,529,857.62 78,139,845.27 Total 1,264,255,723.61 16,400,337.65 1,247,855,385.96 (Continued)
Opening balance
Item
Book balance Falling price reserves Book value
Raw materials& wrappage 112,077,576.03 8,700,056.12 103,377,519.90 Homemade semi-finished products and
1,061,359,515.77 0.00 1,061,359,515.77 products in process
Finished products 67,034,474.15 4,588,735.74 62,445,738.42 Total 1,240,471,565.95 13,288,791.86 1,227,182,774.09 (2) Falling price reserves of inventory
Increased amount Decreased amount
Closing Item Opening balance Reverse or
Withdrawal Other Other
balance write-off
Raw materials &
8,700,056.12 170,423.91 0.00 0.00 0.00 8,870,480.03 wrappage
Homemade semi-finished
products and products in
0.00 0.00 0.00 0.00 0.00 0.00 process
Finished products 4,588,735.74 3,573,035.31 0.00 631,913.43 0.00 7,529,857.62 Total 13,288,791.86 3,743,459.22 0.00 631,913.43 0.00 1 6,400,337.65 (3) Basis of provision for falling price of inventories and reasons of reversal and resell in reporting period
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Reason
of
reversed
the
provisio
Basic of provision for
n for Reason of resell the provision for falling price of inventories of Item falling price of
falling the reporting period
inventories
price of
inventori
es of the
reporting
period
Raw materials& Net realizable value Disposal of raw material withdrawn impairment provision in wrappage below cost reporting period
Net realizable value Disposal of finished withdrawn impairment provision in Finished goods
below cost reporting period
9. Other current assets
Item Closing balance Opening balance
Finance products 1,450,000,000.00 1,320,000,000.00 Pledge-style repo reverse 0.00 180,712,225.81 Tax deductible 0.00 840,250.30 Total 1,450,000,000.00 1,501,552,476.11 10. Available-for-sale financial assets
(1) Lists of available-for-sale financial assets
Closing balance Opening balance
Item
Impairment Impairment
Book balance Book value Book balance Book value provision provision
Available-for-sale equity
234,362,590.00 234,362,590.00
65,332,932.00 6 5,332,932.00 instruments
Of which: Measured by fair
234,362,590.00 234,362,590.00
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Measured by cost
0.00 0.00 0.00 0.00 Other 23,000,000.00 23,000,000.00 23,000,000.00 2 3,000,000.00 Total 257,362,590.00 257,362,590.00 88,332,932.00 8 8,332,932.00 (2) Available-for-sale financial assets measured by fair value at the period-end
Category of the
Available-for-sale equity Available-for-sale liabilities
available-for-sale financial
Total
instruments instruments
assets
Costs of equity instruments/
amortized cost of liabilities 138,240,694.79 0.00 138,240,694.79 instruments
Fair value 234,362,590.00 0.00 234,362,590.00 Changes amount of fair value
accumulatively recorded into 96,121,895.21 0.00 96,121,895.21 other comprehensive income
Withdrawn impairment
0.00
0.00
0.00 provision amount
(3) Available-for-sale financial assets measured by cost at the period-end
Book balance Impairment provision
Investee Period-begi Increas Decreas Period-beg Increas Decreas Period-en Period-end
n e e in e e d Anjin No. 11 Collection Trust 23,000,000. 23,000,000.
0.00 0.00 0.00 0.00 0.00 0.00 Plan 00 00
23,000,000. 23,000,000.
Total 0.00 0.00 0.00 0.00 0.00 0.00 00 00
11. Investment property
(1) Investment property adopted the cost measurement mode
Item Houses and buildings Land use right Total
I. Original book value
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Houses and buildings Land use right Total
1. Opening balance
74,748,266.02 2,644,592.00 77,392,858.02 2. Increased amount of the period
0.00 0.00 0.00 3. Decreased amount of the period 0.00 0.00 0.00 4. Closing balance
74,748,266.02 2,644,592.00 77,392,858.02 II. Accumulative depreciation and accumulative
amortization
1. Opening balance
44,927,757.41 390,744.37 45,318,501.78 2. Increased amount of the period
1,467,106.65 31,007.28 1,498,113.93 (1) Withdrawal or amortization
1,467,106.65 31,007.28 1,498,113.93 0.00 0.00 0.00 4. Closing balance 46,394,864.06 421,751.65 46,816,615.71 III. Depreciation reserves
1. Opening balance
0.00 0.00 0.00 2. Increased amount of the period
0.00 0.00 0.00 3. Decreased amount of the period 0.00 0.00 0.00 4. Closing balance
0.00 0.00 0.00 IV. Book value
1. Closing book value
28,353,401.96 2,222,840.35 30,576,242.31 2. Opening book value
29,820,508.61 2,253,847.63 32,074,356.24 12. Fixed assets
(1) List of fixed assets
Transportatio
Houses and Machinery Office
Item
n Total buildings
equipment equipment
equipment
I. Original book value
736,224,507.4 49,463,729.8 2,418,823,285.3 1. Opening balance 1,576,781,874.52 56,353,173.45
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Transportatio
Houses and Machinery Office
Item
n Total buildings
equipment equipment
equipment
2. Increased amount of the period 58,895,702.01 9,872,251.82 3,788,341.18 6,348,198.77 78,904,493.78 (1) Purchase
0.00 9,872,251.82 3,788,341.18 6,348,198.77 20,008,791.77 (2) Transfer of project under construction
58,895,702.01 0.00 0.00 0.00 58,895,702.01 3. Decreased amount of the period 0.00 13,712,681.15 510,805.44 182,999.81 14,406,486.40 (1) Disposal or scrap 0.00 1 3,712,681.15 510,805.44 182,999.81 14,406,486.40 (2) Technology transfer into construction
0.00 0.00 0.00 0.00 0.00 projects
732,384,078.1 52,741,265.6 2,483,321,292.7 4. Closing balance
1,635,677,576.53 62,518,372.41
6 1 1 II. Accumulative depreciation
232,008,403.6 35,510,538.6
1.Opening balance 376,591,354.84 43,891,172.49 688,001,469.58 2 3
2. Increased amount of the period 32,921,844.10 37,050,548.01 3,656,080.53 4,119,694.03 77,748,166.67 (1) Withdrawal 32,921,844.10 37,050,548.01 3,656,080.53 4,119,694.03 77,748,166.67 3. Decreased amount of the period 0.00 11,493,427.41 495,481.28 179,964.37 12,168,873.06 (1) Disposal or scrap 0.00 11,493,427.41 495,481.28 179,964.37 12,168,873.06 (2) Technology transfer into construction
0.00 0.00 0.00 0.00 0.00 projects
257,565,524.2 38,671,137.8
4. Closing balance 409,513,198.94 47,830,902.15 753,580,763.19 2 8
III. Depreciation reserves
1.Opening balance
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Transportatio
Houses and Machinery Office
Item
n Total buildings
equipment equipment
equipment
IV. Book value
472,264,582.4 14,070,127.7 1,723,053,180.8 1. Closing book value
1,222,031,000.49 14,687,470.26
0 3 8 501,662,132.3 13,953,191.2 1,724,134,467.1 2. Opening book value
1,196,057,142.58 12,462,000.96
3 4 1 (2) List of temporarily idle fixed assets
Original book Accumulative Impairment
Item Book value Notes
value depreciation provision
Houses and buildings 15,719,043.63 11,411,262.48 4,133,377.10 174,404.05
Machinery
11,408,610.31 8,824,987.29 2,553,971.54 29,651.48
equipment
Total 27,127,653.94 20,236,249.77 6,687,348.64 204,055.53
(3) Fixed assets leased in from financing lease
Item Closing book value
Machinery equipment 2,883,127.28 Transportation instruments 15,668.31 Office equipment and other 20,767.88 Total 2,919,563.47 (4) Details of fixed assets failed to accomplish certification of property
Item Book value Reason
Uniform handling after the completion of the industrial park Industrial park office building 73,604,583.93 project
Uniform handling after the completion of the industrial park The fire station 1,004,060.07 project
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Book value Reason
Uniform handling after the completion of the industrial park No.1 Peiqu building
11,402,716.36 project
Uniform handling after the completion of the industrial park No.2 Peiqu building
11,402,716.36 project
Uniform handling after the completion of the industrial park No.3 Peiqu building
11,402,716.36 project
Uniform handling after the completion of the industrial park No.4 Peiqu building
12,131,198.76 project
Uniform handling after the completion of the industrial park No.5 Peiqu building
12,143,784.02 project
Uniform handling after the completion of the industrial park Industrial park No. 1 brewhouse
23,767,032.42 project
Uniform handling after the completion of the industrial park Industrial park No. 2 brewhouse
23,942,269.18 project
Uniform handling after the completion of the industrial park Industrial park No. 3 brewhouse
24,299,335.84 project
Uniform handling after the completion of the industrial park Industrial park No. 4 brewhouse
24,262,069.95 project
Uniform handling after the completion of the industrial park Bran warehouse, yeast warehouse 36,741,572.55 project
Uniform handling after the completion of the industrial park Auxiliary workshop office building 1,141,031.03 project
Uniform handling after the completion of the industrial park Sewage treatment station of industrial park 12,000,709.02 project
Blending workshop, wine collection station Uniform handling after the completion of the industrial park and stainless steel tank district 20,191,071.77 project
Uniform handling after the completion of the industrial park No.2, No. 3 stainless steel tank district 23,512,212.12 project
Uniform handling after the completion of the industrial park Industrial Park No.1 filling house
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Book value Reason
Uniform handling after the completion of the industrial park Industrial Park No.2 filling house
40,613,173.81 project
Uniform handling after the completion of the industrial park Industrial Park No.6 filling house
21,717,100.56 project
Uniform handling after the completion of the industrial park Industrial Park No.8 filling house
25,323,401.30 project
Uniform handling after the completion of the industrial park Reception and multi-function hall 25,204,127.80 project
Scientific research and comprehensive Uniform handling after the completion of the industrial park command center 28,212,112.96 project
Logistics office building, canteen, salvage Uniform handling after the completion of the industrial park station 4,430,535.36 project
Uniform handling after the completion of the industrial park Qinggong apartment 10,189,005.39 project
Uniform handling after the completion of the industrial park Industrial Park electropower station 34,923,526.86 project
Uniform handling after the completion of the industrial park Industrial park No. 5 brewhouse 25,982,050.51 project
Uniform handling after the completion of the industrial park Industrial park No. 7 brewhouse 25,821,630.87 project
Uniform handling after the completion of the industrial park Industrial Park No.3 filling house 44,382,898.57 project
Hefei marketing command center 141,054,942.80 Had not perform the final accounts of the completed project Uniform handling after the completion of the industrial park Underground pottery jar wine warehouse 18,049,486.35 project
Total 806,806,938.92
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
13. Construction in progress
(1)
Closing balance Opening balance
Item Book Impairment Book Book Impairment Book balance provision value balance provision value Renovation project of major potential safety 18,430,328 18,430,32
0.00 0.00 0.00 0.00 concerns .81 8.81
2,996,600. 2,996,600.
Shenzhen experience museum 0.00 0.00 0.00 0.00 00 00
1,145,025. 1,145,025.
Thermal power generator 0.00 0.00 0.00 0.00 64 64
Removal andR&D project of base liquid and support 6,973,661. 6,973,661. 59,085,920 59,085,92 0.00 0.00
facility project 51 51 .04 0.04 1,577,655. 1,577,655. 1,753,888. 1,753,888. Operation network of Gujing 0.00 0.00
78 78 88 88 Glass company II workshop technical renovation 5,513,757. 5,513,757.
0.00 5,036.50 0.00 5,036.50 project 23 23
2,522,093. 2,522,093. 792,665.5 Other 792,665.54 0.00
89 89 4 39,159,122 39,159,12 61,637,510 61,637,51 Total 0.00
.86 0 2.86 .96 0.96 (2) Changes of significant construction in progress
Transferred to
Name of project
Budget Opening balance Increase Other decrease Closing balance fixed assets
Renovation project
of major potential 103,670,000.00 0.00 18,430,328.81 0.00 0.00 18,430,328.81 safety concerns
Shenzhen
experience 6,800,000.00 0.00 2,996,600.00 0.00 0.00 2,996,600.00 museum
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Transferred to
Name of project
Budget Opening balance Increase Other decrease Closing balance fixed assets
Thermal power
3,500,000.00 0.00 1,145,025.64 0.00 0.00 1,145,025.64 generator
Removal andR&D
project of base
800,000,000.00 59,085,920.04 279,0,000.00 58,439,814.27 21,572,444.26 6,973,661.51 liquid and support
facility project
Operation network
8,350,000.00 1,753,888.88 0.00 0.00 176,233.1 1,577,655.78 of Gujing
Glass company II
workshop technical 14,999,000.00 5,036.50 5,508,720.73 0.00 0.00 5,513,757.23 renovation project
Other 2,600,000.00 792,665.54 2,185,316.09 455,887.74 0.00 2,522,093.89 Total 939,919,000.00 61,637,510.96 58,165,991.27 58,895,702.01 21,748,677.36 39,159,122.86 (Continued)
Proportion of
Accumulative
project Including: Capitalization
Progress of amount of
Name of project
accumulative capitalization of of interest rate Source of funding works capitalization of
investment in interest this period (%)
interest
budget(%)
Renovation project
of major potential 17.78 18.00% 0.00 0.00 0.00 Owned fund safety concerns
Shenzhen experience
44.07 90.00% 0.00 0.00 0.00 Owned fund museum
Thermal power
32.72 80.00% 0.00 0.00 0.00 Owned fund generator
Removal andR&D
project of base liquid
92.35 99.00% 0.00 0.00 0.00 Owned fund and support facility
project
Operation network 50.59 60.00% 0.00 0.00 0.00 Owned fund
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Proportion of
Accumulative
project Including: Capitalization
Progress of amount of
Name of project
accumulative capitalization of of interest rate Source of funding works capitalization of
investment in interest this period (%)
interest
budget(%)
of Gujing
Glass company II
workshop technical 92.35 95.00% 0.00 0.00 0.00 Owned fund renovation project
Other 97.00 98.00% 0.00 0.00 0.00 Owned fund Total
14. Intangible assets
Item
Land use right Patent
Software Total I. Total original book
value
1. Opening balance
351,249,420.80 38,150,000.00 4,465,480.74 393,864,901.54 2. Increase in the
0.00 0.00 0.00 0.00 reporting period
(1) Purchase 0.00 0.00 0.00 0.00 3. Decrease in the
0.00 0.00 0.00 0.00 reporting period
4. Closing balance 351,249,420.80 38,150,000.00 4,465,480.74 393,864,901.54 II. Total accrued
amortization
1. Opening balance
47,205,017.04 38,090,000.00 2,081,101.90 87,376,118.94 2. Increase in the
3,435,174.75 30,000.00 1,113,503.33 4,578,678.08 reporting period
(1) Withdrawal
3,435,174.75 30,000.00 1,113,503.33 4,578,678.08 3. Decrease in the
0.00 0.00 0.00 0.00 reporting period
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item
Land use right Patent
Software Total III. Total impairment
provision
1. Opening balance
0.00 0.00 0.00 0.00 2. Increase in the
0.00 0.00 0.00 0.00 reporting period
3. Decrease in the
0.00 0.00 0.00 0.00 reporting period
4. Closing balance 0.00 0.00 0.00 0.00 IV. Total book value of
intangible assets
1. Book value of the
300,609,229.01 30,000.00 1,270,875.51 301,910,104.52 period-end
2. Book value of the
304,044,403.76 60,000.00 2,384,378.84 306,488,782.60 period-begin
15. Long-term unamortized expenses
Amortization
Item Opening balance Increase Other decrease Closing amount amount
Yeast house& yeast frame project 4,441,727.75
0.00
761,679.42 0.00 3,680,048.33 Reform on highly qualified base
11,026,663.52 21,572,444.26 2,422,144.45 0.00 30,176,963.33 liquid project
Specialty store decoration
31,138,198.70 618,565.76 7,378,013.43 0.00 24,378,751.03 engineering
Beijing experience centre
19,390,786.73 59,376.05 1,484,772.48 0.00 17,965,390.30 decoration project
The relocation compensation of
13,125,000.00 0.00 750,000.00 0.00 12,375,000.00 Beijing experience center
Wine culture museum decoration
74,686.00 0.00 74,686.00 0.00 0.00 project
Sewage treatment project
5,450,000.00 0.00 300,000.00 0.00 5,150,000.00 Afforestation fees
37,098,217.07 1,437,152.00 6,908,008.29 0.00 31,627,360.78 Gujing mountain villa decoration
6,174,098.69 0.00 508,878.71 244,911.99 5,420,307.99 project
Hangzhou experience club project
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Amortization
Item Opening balance Increase Other decrease Closing amount amount
Wine stores goods shelf
0.00 1,690,683.77 0.00 0.00 1,690,683.77 Other 3,944,987.97 360,000.00 684,999.99 0.00 3,619,987.98 Total 131,921,179.23 25,738,221.84 21,329,995.57 244,911.99 136,084,493.51 16. Deferred income tax assets/deferred income tax liabilities
(1) Lists of deferred income tax assets
Closing balance Opening balance
Item Deductible Deductible
Deferred tax assets Deferred tax assets temporary differences temporary differences
Provision for bad debts
52,092,613.85 13,023,153.46 52,125,136.19 13,031,224.13 Provision for obsolete stocks
16,400,337.65 4,100,084.41 13,288,791.86 3,322,197.97 Fixed assets depreciation reserves
6,685,305.34 1,671,326.34 6,685,305.34 1,671,326.34 Internal unrealized purchase and
965,447.20 241,361.80 sale profits 85,470.12 21,367.53
Deferred income
39,042,134.11 9,760,533.53 40,839,961.86 10,209,990.47 Deductible losses
0.00 0.00 0.00 0.00 Impairment provisions of
0.00 0.00 intangible assets 0.00 0.00
Accrued expenses
117,818,360.16 29,454,590.04 87,066,783.07 21,766,695.77 Changes in the fair value of
0.00 0.00 0.00 0.00 Available-for-sale financial assets
Carry-over payroll payable
52,003,828.06 13,000,957.02 deducted in next period 19,320,296.38 4,830,074.10
Total 251,444,517.61 62,861,129.41 252,975,253.58 63,243,753.50 (2) List of deferred income tax assets
Closing balance Opening balance
Item
Taxable temporary Deferred income tax Taxable temporary Deferred income tax differences liabilities differences liabilities Changes in fair value of trading
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Changes in fair value of
96,121,895.21 24,030,473.80 22,226,138.76 5,556,534.69 available for sale financial assets
Total
96,162,327.79 24,040,581.94 22,347,173.76 5,586,793.44 (3) List of unrecognized deferred income tax assets
Item
Closing balance Opening balance
Deductible
2,295.30 2,295.30 temporary differences
Deductible losses
979,384.41 1,179,384.41 Total 981,679.71 1,181,679.71 17. Notes payable
Category Closing balance Opening balance
Bank acceptance 253,424,000.00 192,850,000.00 Trade acceptance 40,660,023.18 65,602,214.00 Total 294,084,023.18 258,452,214.00 18. Accounts payable
(1) List of accounts payable
Item Closing balance Opening balance
Within 1 year 303,026,867.59 311,334,691.25 Over 1 year 92,344,680.13 93,299,505.33 Total 395,371,547.72 404,634,196.58 (2) Notes of significant accounts payable aging over 1 year
Item Closing balance Reason
A Company
17,078,961.49
The project had not perform the final settlement of account B Company
11,525,200.00
The project had not perform the final settlement of account C Company
7,615,752.27
The project had not perform the final settlement of account D Company
7,544,026.71
The project had not perform the final settlement of account E Company
6,376,632.93
The project had not perform the final settlement of account
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Total
50,140,573.40
19. Advance from customers
(1) Lists of advance from customers
Item Closing balance Opening balance
Payment for goods 590,946,715.63 377,503,471.86 Total 590,946,715.63 377,503,471.86 20. Payroll payable
(1) Lists of payroll payable
Item Opening balance Increase Decrease Closing balance I. Short-term salary
219,746,810.75 373,820,527.07 407,234,316.04 186,333,021.78 II. Post-employment benefit - defined
451,710.53 45,744,769.01 45,667,563.87 528,915.67 contribution plans
III. Dismission welfare 0.00 0.00 0.00 0.00 IV. Other welfare due within one year 0.00 0.00 0.00 0.00 Total 220,198,521.28 419,565,296.08 452,901,879.91 186,861,937.45 (2) List of Short-term salary
Item Opening balance Increase Decrease Closing balance 1. Salary, bonus, allowance, subsidy 177,114,565.35
280,057,772.04 320,947,375.69 136,224,961.70 2. Employee welfare 0.00
8,519,443.97 8,519,443.97 0.00 3. Social insurance 41,191.24
16,135,922.55 16,127,864.90 49,248.89 Including: Medical insurance premiums 31,975.35
13,809,638.96 13,801,766.19 39,848.12 Work-related injury insurance 4,420.00
1,465,827.69 1,465,721.49 4,526.20 Maternity insurance 4,795.89
860,455.90 860,377.22 4,874.57 4. Housing fund 12,228,186.84
57,219,821.88 57,148,059.23 12,299,949.49 5. Labor union budget and employee
30,362,867.32
11,887,566.63 4,491,572.25 37,758,861.70 education budget
Total
219,746,810.75
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
(3) List of drawing scheme
Item Opening balance Increase Decrease Closing balance 1. Basic pension benefits
425,679.81 42,821,390.47 42,746,978.16 500,092.12 2. Unemployment insurance 26,030.72 2,923,378.54 2,920,585.71 28,823.55 Total 451,710.53 45,744,769.01 45,667,563.87 528,915.67 21. Taxes payable
Item Closing balance Opening balance
VAT
59,416,973.36 103,775,137.73 Consumption tax
68,959,515.00 67,865,349.26 Business tax
454,429.62 1,265,824.75 Corporate income tax
160,981,669.16 267,763,285.42 Personal income tax
3,023,364.20 2,283,345.14 Urban maintenance and construction tax
4,170,725.98 6,287,946.00 Stamp tax 3,379,862.08 3,388,215.38 Educational surcharges 3,116,561.02 6,277,797.04 Other
10,982,871.91 9,772,622.91 Total
314,485,972.33 468,679,523.63 22. Dividends payable
Item Closing balance Opening balance
Dividends payable 100,720,000.00 0.00 Total 100,720,000.00 0.00 23. Other accounts payable
Other accounts payable listed by nature of the account
Item Closing balance Opening balance
Margin& pledge payment 316,979,829.31 272,037,012.38 Travel expense 8,687,950.48 1,372,502.75 Quality guarantee deposit 39,254,891.89 38,824,726.91
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Closing balance Opening balance
Withholding personal housing fund on
12,149,262.63 behalf 12,218,065.94
Other 77,403,874.18 44,484,959.07 Accrued expenses 117,818,360.16 87,704,041.68 Total 572,362,971.96 456,572,505.42 24. Deferred income
Item Opening balance Increase Decrease Closing balance Formation reasons Received assets related to Government subsidies
40,839,961.86 500,000.00 2,297,827.75 39,042,134.11
government subsidies
Total
40,839,961.86 500,000.00 2,297,827.75 39,042,134.11 —
Items involved in government subsidies:
Amount accrued in
Amount of Related to the Item Opening balance non-business Other changes Closing balance
newly subsidy assets/ income income
Energy-saving and
reform project of
Related to the coal-fired industry
624,750.00 0.00 76,500.00 0.00 548,250.00
boiler and glass
assets furnace
Bozhou city logistics Related to the 300,000.00 0.00 30,000.00 0.00 270,000.00
center project
assets Special account for
prevention and cure
Related to the of waste water
650,000.12 0.00 325,000.02 0.00 325,000.10
directed by municipal
assets finance
Financial subsidy for Related to the 2,060,827.48 0.00 265,811.76 0.00 1,795,015.72
energy-saving project
assets Financial subsidy for
Related to the technology
2,552,816.98 0.00 267,110.76 0.00 2,285,706.22
innovation
assets Discount on
technology reform of Related to the 43,333.41 0.00 19,999.98 0.00 23,333.43
deposit in budget
assets directed by municipal
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Amount accrued in
Amount of Related to the Item Opening balance non-business Other changes Closing balance
newly subsidy assets/ income income
finance
Special fund to
enterprise Related to the 172,500.00 0.00 15,000.00 0.00 157,500.00
development directed
assets by municipal finance
Iot traceability system Related to the 7,425,000.00 0.00 556,875.00 0.00 6,868,125.00
project
assets Related to the Land refund
25,313,858.83 0.00 599,863.58 0.00 24,713,995.25
assets Motor and boiler
Related to the energy-saving reform
962,500.04 0.00 68,749.98 0.00 893,750.06
project
assets Automated storage
hook and product Related to the 734,375.00 0.00 46,875.00 0.00 687,500.00
quality online
assets monitoring
Technical reform of
Related to the wine production 0.00
5 0 0 , 0 0 0 .0 0 2 6 , 0 4 1 .6 7 0.00 473,958.33
assets
system
Total
40,839,961.86 500,000.00 2,297,827.75 39,042,134.11
25. Share capital
Increase/decrease(+/-)
Capitalization
Item
Opening balance
Newly Bonus Closing balance of public Other Subtotal
issue share shares
reserves
Total
503,600,000.00 0.00 0.00 0.00 0.00
503,600,000.00 26. Capital reserve
Increase in the Decreased in the
Item
Opening balance
Closing balance reporting period reporting period
Capital premium 1,262,552,456.05 0.00 0.00 1,262,552,456.05 Other capital reserve 32,386,037.14 0.00 0.00 32,386,037.14 Total 1,294,938,493.19 0.00 0.00 1,294,938,493.19
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
27. Other comprehensive income
Reporting period
Less: Amount
transferred
into profit and
loss in the After-tax
Amount After-tax
Opening current period attribute to Closing Item incurred Less: income attribute to
balance that minority balance before tax expense the parent
recognized shareholde
income tax company
into other r
comprehensiv
e income in
prior period
||||
|-|-|-|
|1.Othercomprehensiveincome will bereclassifiedinto income orloss in thefuture|||
||16,669,604.07|73,895,756.45|

|||
|-|-|
|18,473,939.12|55,421,817.33|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Reporting period
Less: Amount
transferred
into profit and
loss in the After-tax
Amount After-tax
Opening current period attribute to Closing Item incurred Less: income attribute to
balance that minority balance before tax expense the parent
recognized shareholde
income tax company
into other r
comprehensiv
e income in
prior period
e income
reclassified
into profit and
loss in future
Of which:
gains or
|||
|-|-|
|16,669,604.07|73,895,756.45|

|||
|-|-|
|18,473,939.12|55,421,817.33|

 available for
sale financial
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Reporting period
Less: Amount
transferred
into profit and
loss in the After-tax
Amount After-tax
Opening current period attribute to Closing Item incurred Less: income attribute to
balance that minority balance before tax expense the parent
recognized shareholde
income tax company
into other r
comprehensiv
e income in
prior period
assets
|||||||||
|-|-|-|-|-|-|-|-|
|Total|16,669,604.07|73,895,756.45||18,473,939.12|55,421,817.33||72,091,421.40|
||||0.00|||0.00||

 28. Surplus reserves
Item Opening balance Increase Decrease Closing balance Statutory surplus reserves 256,902,260.27 0.00 0.00 256,902,260.27 Total 256,902,260.27 0.00 0.00 256,902,260.27 Note: According to the stipulations of Corporate Law and Constitution, The Company withdraw legal surplus reserves in line with10% of the profit, the accumulative amount of legal surplus reserves was over50% of theCompany’s registered capital can be no longer withdrawn
The Company, after withdraw the legal surplus reserves, can withdraw discretionary surplus reserve, been approved, discretionary
surplus reserve can be used to make up the losses of the previous year or increase share equity
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item
Reporting period Same period of last year Balance at the end of the year of 2014(Before adjustment)
2,108,940,620.43 1,688,158,733.09 Total adjustment for the balance at the beginning of the year of 2015
0.00 0.00 Balance at the beginning of the year of 2015 (After adjustment)
2,108,940,620.43 1,688,158,733.09 Add: Current distributable net profits for owners of parent company
380,504,804.17 597,041,887.34 Less: Appropriation of statutory surplus reserves 0.00 Less: Appropriation of discretionary surplus reserve 0.00 0.00 Appropriation of normal risk provision
0.00 0.00 Ordinary shares dividend payables
100,720,000.00 176,260,000.00 Ordinary shares dividend capitalized to share capital
0.00 0.00 Undistributed profits as at the period-end 2,388,725,424.60 2,108,940,620.43 30. Operating Revenues and Operating Costs
Reporting period Same period of last year Item
Revenue Cost Revenue Cost Main operation
2,697,122,601.21 812,852,316.96 2,368,129,229.88 713,705,869.42 Other operation
15,920,227.71 14,726,210.63 22,029,719.88 20,377,490.89 Total
2,713,042,828.92 827,578,527.59 2,390,158,949.76 734,083,360.31 31. Business tax and surcharges
Item Reporting period Same period of last year
Consumption tax
324,369,895.65 270,563,928.74 Business tax
24,850,358.67 2,000,208.44 Urban maintenance and construction tax
41,930,864.50 52,280,838.07 Other
1,031,615.55 17,049.83 Total
392,182,734.37 324,862,025.08 Notes: Payment standard of each business tax and surtax please refer to annotations VII, Taxes.
32. Sales expenses
Item Reporting period Same period of last year
Employee compensations 69,426,393.62 22,574,597.53 Travel expenses 46,830,598.44 37,020,556.51
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Reporting period Same period of last year
Advertisement fees 212,795,746.59 299,424,499.32 Transportation fees 12,475,756.29 11,279,389.20 Propaganda and promotion expenses 278,466,662.23 178,181,231.51 Sample wine 31,965,394.85 40,850,491.17 Labor costs
129,461,776.59 105,155,215.02 Other sales expenses 12,804,495.28 11,673,586.65 Total 794,226,823.89 706,159,566.91 33. Administrative expenses
Item Reporting period Same period of last year
Employee compensations 136,704,663.06 117,475,653.85 Office expenses
7,287,777.92 21,706,293.02 Taxes
4,326,514.49 6,175,133.35 Repairing fees
18,344,927.54 13,117,163.49 Depreciation expenses
23,808,699.83 11,327,357.46 Amortization of intangible assets
3,978,814.50 4,435,599.74 Pollution discharge fees
7,542,096.40 8,986,205.96 Material wastage
19,443,106.51 22,013,629.66 Travel expenses
840,055.23 6,733,316.85 Water and electricity fees
4,357,291.78 3,618,858.29 Scientific research funds 1,027,861.00 3,774,340.11 Others 10,264,962.38 19,762,230.13 Total 237,926,770.64 239,125,781.91 34. Financial expenses
Item Reporting period Same period of last year
Interests costs 6,685,540.26 0.00 Less: Interests incomes 15,350,708.99 33,131,195.49 Less: Interests capitalization amount 0.00 0.00 Exchange gains and losses 0.00 0.00
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Reporting period Same period of last year
Bank charges 71,192.99 766,303.36 Total -8,593,975.74 -32,364,892.13 35. Asset impairment loss
Item Reporting period Same period of last year
Bad debt losses -32,522.34 -491,603.01 Loss on inventory valuation 3,743,459.22 0.00 Fixed assets impairment losses 0.00 0.00 Total 3,710,936.88 -491,603.01 36. Gains on the changes in the fair value
Source Reporting period Same period of last year Financial assets measured at fair value and changes recorded
40,432.58 7,270.00 into current profits or losses
Of which: income from change in fair value of derivative
0.00 0.00 financial instruments
Total 40,432.58 7,270.00 37. Investment income
Item Reporting period Same period of last year Investment income from financial assets measured at fair value
and changes recorded into current profits or losses during
0.00 0.00 holding period
Investment income from disposal of financial assets measured
by fair value with changes in fair value recognised in profit or
7,295,964.00 554,811.42 loss
Investment income received from available for sale financial
286,508.40
assets during holding period 45,000.00 Investment income from disposal of available for sale financial
30,715,700.54
assets 54,052,301.38 Total 38,298,172.94 54,652,112.80 38. Non-Operating revenue
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Recorded in the amount Reporting Same period of the Item
period of last year non-recurring gains and losses Total gains from disposal of non-current assets 82,953.29 286,406.47 82,953.29Including：Gains from disposal of fixed assets 82,953.29 286,406.47 82,953.29 Government subsidies (Details please refer to the following table: list of government subsidies)
3,021,627.75 2,215,047.54 3,021,627.75 Gains from penalties 3,129,276.74 6,408,989.21 3,129,276.74 Sale of waste 3,078,184.05 2,980,076.22 3,078,184.05 Accrued expenses non-payable 0.00 0.00 0.00 Others
672,544.68 967,603.62 672,544.68 Total
12,858,123.06 9,984,586.51 9,984,586.51 Of which, the list of government subsidies:
Amount of reporting Related to assets/ Item Amount of last period
period
related to income Subsidy income
723,800.00 590,000.00
Related to income Deferred revenue amortization of government
2,297,827.75 1,625,047.54
Related to assets subsidies related to assets
Total
3,021,627.75 2,215,047.54
39. Non-Operating expense
Amount recorded into Amount of reporting
Item Amount of last period
current non-recurring period
profit and loss Loss on disposal of non-current assets 644,420.16 1,389,957.09 644,420.16 Including: Loss on disposal of fixed assets 644,420.16 1,389,957.09 644,420.16 Abandonment loss 0.00 0.00 0.00 Others 634,804.72 164,128.52 634,804.72 Total 1,279,224.88 1,554,085.61 1,279,224.88
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
40. Income tax expense
(1) Lists of income tax expense
Item Amount of reporting period Amount of last period
Current income tax expense
132,167,550.18 126,819,032.61 Deferred income tax expense
382,624.09 122,900.75 Total
132,550,174.27 126,941,933.36 41. Other comprehensive income
Refer to the notes (27), VIII
42. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
Item Amount of reporting period Amount of last period
Security deposit 101,441,243.19 107,414,393.02 Government subsidiaries 723,800.00 590,000.00 Interest income 14,740,180.55 12,151,064.88 Others 22,014,300.47 17,855,555.91 Recover of the pledge of bank deposit 36,100,000.00 75,000,000.00 Total 175,019,524.21 213,011,013.81 (2) Cash paid related to other operating activities
Item Amount of reporting period Amount of last period
Cash paid in selling expenses and administrative
expenses 342,410,137.61 380,593,052.10 Fixed term deposits used to issue the pledge for the
notes payable 30,100,000.00 50,500,000.00 Others 15,997,968.39 14,342,851.72 Total 388,508,106.00 445,435,903.82 (3) Cash received from other related investing activities
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Amount of reporting
Item Amount of last period period
Received government subsidy related to assets 500,000.00 1,100,000.00 Total 500,000.00 1,100,000.00 43. Supplemental information for cash flow statement
(1) Supplemental information for cash flow statement
Item Reporting period Same period of last year 1. Reconciliation of net profit to net cash flows generated from operating
activities
Net profit 380,504,804.17 357,806,197.58 Add: Provision for impairment of assets 3,710,936.88 -491,603.01 Add: Provision for impairment of assets 77,748,166.67 55,339,914.67 Depreciation of t he investment real estate. 1,498,113.93 1,584,806.81 Amortization of intangible assets
4,578,678.08 4,435,599.74 Amortization of long-term deferred expense 21,329,995.57 11,814,975.26 Losses on disposal of property, plant and equipment, intangible assets and
other
1,389,957.09 long-term assets (gains: negative) 285,606.26
Loss on retirement of fixed assets (gains: negative) 0.00 0.00 Loss on changes in fair value(gains: negative) -40,432.58 -7,270.00 Financial cost (gains: negative)
0.00 0.00 Investment loss (gains: negative)
-38,298,172.94 -54,652,112.80 Decrease in deferred income tax assets (gains: negative)
382,624.09 122,900.75 Increase in deferred income tax liabilities (decrease: negative)
24,040,581.94 709,215.45 Decrease in inventory (gains: negative) -20,672,611.87 -73,499,010.56 Decrease in accounts receivable from operating activities (gains: negative)
-289,286,240.30 -199,606,820.12 Increase in payables from operating activities (decrease: negative)
168,137,780.18 -181,159,803.30 Deferred revenue amortization 2,297,827.75 0.00 Net cash flows generated from operating activities
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Item Reporting period Same period of last year II. Investing and financing activities that do not involving
cash receipts and payment:
Conversion of debt into capital
0.00 0.00 Convertible bond due within one year
0.00 0.00 Fixed assets financed by finance leases
0.00 0.00 III. Net increase in cash and cash equivalents
Closing balance of cash 904,128,752.91 1,026,002,207.86 Less: Opening balance of cash 682,360,442.79 1,306,930,710.96 Add: Closing balance of cash equivalents 0.00 0.00 Less: Opening balance of cash equivalents 0.00 0.00 Net increase in cash and cash equivalents 221,768,310.12 -280,928,503.10 (2) Cash and cash equivalents
Item Reporting period Same period of last year I. Cash 904,128,752.91 682,360,442.79 Including: Cash on hand
367,649.75 349,833.07 Bank deposit on demand
894,253,716.95 677,644,608.33 Other monetary funds on demand
9,507,386.21 4,366,001.39 II. Cash equivalent 0.00 0.00 Including: Bond investment due in three months
0.00 0.00 III. Closing balance of cash and cash equivalents 904,128,752.91 682,360,442.79 44. The assets with the ownership or use right restricted
Item Closing book value Restricted reason
The pledge use for opening a bank Monetary capital 30,100,000.00
acceptance bill
The pledge use for opening a bank Notes receivable 220,924,000.00
acceptance bill
Total
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
IX. Changes of merge scope
1. Other reasons for the changes in combination scope
There was no newly establishing subsidiary.
There was no cancellation of subsidiary.
X. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main
Registration
Proportion of shareholding
Name of the subsidiary operating Nature of business Way of gaining place
Directly Indirectly
place
Bozhou, Bozhou,
Bozhou Gujing Sales Co., Ltd 100.00 Investment Anhui Anhui Business trading
Bozhou Gujing Transportation Bozhou, Bozhou,
Transportation 99.00 1.00 Investment Co., Lt Anhui Anhui
Bozhou, Bozhou,
Anhui Longrui Glass Co., Ltd Manufacture 99.00 1.00 Investment Anhui Anhui
Bozhou Gujing Waste Bozhou, Bozhou,
Waste cycled 100.00 Investment Reclamation Co., Ltd Anhui Anhui
Anhui Jinyunlai Culture& Hefei Hefei
Ads marketing 100.00 Investment Media Co.,Ltd. Anhui Anhui
Bozhou Gujing Packing Co., Bozhou, Bozhou,
Manufacture 100.00 Investment Ltd. Anhui Anhui
Anhui Swisse Will Science& Bozhou, Bozhou,
Technology research 100.00 Investment Technology Co., Ltd. Anhui Anhui
Anhui Subway Cordial Wine Bozhou, Bozhou,
Manufacture 100.00 Investment Co., Ltd. Anhui Anhui
Enterprise
Shanghai Gujing Jinhao Hotel
Shanghai Shanghai Hotel management 100.00 co mbination under Management Co., Ltd.
same control Enterprise
Bozhou Gujing Hotel Co., Bozhou, Bozhou,
Hotel operating 100.00 co mbination under Ltd. Anhui Anhui
same control Other notes: During the reporting period theCompany’s subsidiary Bozhou Gujing Glass Co., Ltd. was renamed Anhui Longrui Glass Co., Ltd
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
XI. Risk related to financial instruments
The main financial instruments of the Company are equity investment, financial product, trust investment, account receivables and account payables, etc, the specific explanation of each financial instrument are in relevant item of Note VI. Risk related to these financial instruments and the risk management policies the Company adopted to reduce the risk is as follows: the management of the Company monitors and manages the risk exposure to ensure the aforesaid risk within the limit scope of control.
(I) Goals and policies of risk management
The Goals of the Company is to maintain a proper balance between the risk and the income, reduce the negative influence of risk to the operation performance of the Company to a minimum, and maximize profits of shareholders and other equity investors, basing on the risk management goal, the Company basis policies are to recognize and analyze each risk the Company faced, establish proper risk bottom line and conduct risk management, timely and reliably supervise each risk, control the risks within the limit scope .
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk is referred to the risk of loss from the change of exchange rate. The main operation of the Company is within the territory of China, mainly settled by RMB, only small amount of export business and the influence of the proportion in the total income is rather small; the exchange rate risk is very little.
(2) Interest rate risk - cash flow fluctuation risk
The opration capital of the Company is sufficient, there is no external borrowing in the Company; the interest rate risk is very little.
(3) Other price risk
What the Company held are classified as available financial assets and tradable finacial assets measured at fair value on balance sheey date. Thus, the Company bares the risk change of securities market. The Company adopt variety of equity group to reduce the price risk in equity security investment.
2. Credit risk
On 30 Jun. 2015, the main credit risk exposure may lead to the financial losses of the Company mainly is the possibility of financial assets losses and the guarantee the Company born to one party of the contract from unfulfillment of obligations of the other party. Including:
Account amount of financial assets recognized in consolidate balance sheet, for financial instruments measured at fair value, the book value reflect its risk exposure, but not the largest risk
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
exposure, the largest risk exposure is change from the change of future fair value.
The Company only trade with the third party authorized with good credit and large scale. In line with the policies of the Company and the items of sale contracts, the Compny gives priority to first payment shipment, only small amount of credit transactions and examines and vertifies the credit of the client who trading with by credit way.
The liquidity capital of the Company is deposit in the bank with high cedit rating, thus the credit risk of liquidity capital is lower.
3. Liquidity risk
When managing liquidity risk, the Company keep the opinion of the management that mornitoring the cash and cash equivalents to meeet the operation need of the Company, and reduce the influence of cash flow fluctuation.
XII. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
||
|-|
|Closing fair value|
|Fair valuemeasurementitems at level 1|

||
|-|
|Fair valuemeasurementitems at level 2|

||
|-|
|Fair valuemeasurementitems at level 3|

||
|-|
|I. Consistent fair value measurement|
|(I) Financial assets measured by fair valueand changes recorded into current profitsand losses|
|1. Tradable financial assets|
|(1) Debt instrument investment|
|(II) Available for sale financial assets|
|(1) Equity instrument investment|
|Total assets consistently calculated by fairvalue|

2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The consistent fair value measurement items were the share public trade on Shanghai Stock Exchange or Shenzhen Stock Exchange, the market price recognition basis was the closing price of the share on balance sheet date.
XIII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of Proportion of share held by voting rights Registered Registered
Name of parent company Business scope parent company owned by parent place capital
against the company against Company(%) the Company(%) Beverage, Construction
materials, and plastic
Anhui Gujing Group Co., Ltd. Anhui 353,380,000.00 53.80 53.80 productions
manufacture
Notes: The finial control of the Company wasPeople’s Government of Bozhou, Anhui
2. Information on subsidiaries of the Company
Details please refer to the annotation 1, X, Equity in subsidiaries.
3. Information on other related parties
Name of other related parties Relationship with the Company
Anhui Ruifuxiang Food Co., Ltd Affiliated enterprise of controlling shareholder and actual controller Anhui Ruijing Restaurant Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Ruijing Trade Travel (Group) Co., Ltd Affiliated enterprise of controlling shareholder and actual controller Bozhou Hotel Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Gujing Real Estates Group Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller East Ruijing Enterprise Investment Development Co.,
Ltd Affiliated enterprise of controlling shareholder and actual controller Anhui Hengxin Pawn Co., Ltd Affiliated enterprise of controlling shareholder and actual controller Bozhou Ruineng Thermoelectricity Co., Ltd Affiliated enterprise of controlling shareholder and actual controller
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Name of other related parties Relationship with the Company
Holiday Inn Hefei Affiliated enterprise of controlling shareholder and actual controller Anhui Ruifuxiang High-protein Feed Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Gujing Hotel Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Ruixin Pawn Co., Ltd Affiliated enterprise of controlling shareholder and actual controller Anhui Zhongxin Financial Leasing Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Huixin Financial Investment Group Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Bozhou Anxin Microcredit Co., Ltd Affiliated enterprise of controlling shareholder and actual controller Bozhou Gujing Hotel Co., Ltd Affiliated enterprise of controlling shareholder and actual controller Bozhou Huisheng Building Catering Company Affiliated enterprise of controlling shareholder and actual controller Bozhou Gujing Junlai Hotel Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Bozhou Gujing Real Estates Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller 4. List of related transactions
① Goods purchased and service received
Content of related Reporting period Same period of last year Name of company
transaction
Anhui Ruifuxiang Food Co., Ltd Purchase of materials 2,829,785.30 2,616,080.99 Anhui Ruifuxiang Food Co., Ltd Purchase of goods 22,237.00 0.00 Bozhou Hotel Co., Ltd. Rendering of services 279,740.90 51,409.51 Holiday Inn Hefei Purchase of goods 2,227,030.00 1,673,540.00 Accepting food and
Holiday Inn Hefei 42,366.92 0.00 accommodation services
Accepting food d and
Bozhou Huisheng Building Catering Company 1,326,279.00 1,931,896.00 accommodation services
Bozhou Gujing Junlai Hotel Management Co., Ltd. Residential Services 134,834.00 0.00 Total 6,862,273.12 6,272,926.50② Sales of goods and rendering of service
Content of related Reporting period Same period of last year Name of company
transaction
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Content of related Reporting period Same period of last year Name of company
transaction
Anhui Hengxin Pawn Co., Ltd Sales of white spirit 1,538.46 1,384.62 Sales of small sized
Anhui Gujing Group Co., Ltd. 40,047.82 12,803.86 materials
Providing Hotels and
Anhui Gujing Group Co., Ltd. 58,500.00 145,200.00 Restaurants
Bozhou Huisheng Building Catering Company Sales of white spirit 135,213.67 2,190.00 Bozhou Hotel Co., Ltd. Sales of white spirit 151,538.47 40,000.00 Anhui Ruijing Trade Travel (Group) Co., Ltd Sales of white spirit 98,804.62 0.00 Anhui Ruijing Restaurant Management Co., Ltd. Sales of white spirit 109,786.32 416,000.00 Anhui Ruifuxiang Food Co., Ltd
Sales of white spirit 145,784.61 71,230.76 Anhui Huixin Financial Investment Group Co., Ltd. S ales of white spirit 21,079.23 0.00 Anhui Gujing Hotel Management Co., Ltd. Sales of white spirit 448,880.33 0.00 Anhui Gujing Real Estates Group Co., Ltd. Sales of white spirit 134,000.00 50,384.62 Providing catering
Anhui Gujing Real Estates Group Co., Ltd. 2,380.00 0.00 service
Holiday Inn Hefei Sales of white spirit 703,846.16 0.00 Holiday Inn Hefei Sales of materials 29,443.06 0.00 Bozhou Gujing Real Estates Development Co., Ltd. Sales of white spirit 198,000.00 0.00 Haozhou Ruineng Thermoelectricity Co., Ltd Sales of white spirit 45,780.77 28,461.54 Anhui Ruifuxiang High-protein Feed Co., Ltd. Sales of white spirit 8,092.31 0.00 Anhui Ruifuxiang High-protein Feed Co., Ltd. Sales of materials 33,181.21 0.00 Total 2,365,897.04 767,655.40 (2) Related leasing
The Group was the lessee:
The lease income
The lease income Name of lessor Type confirmed in the report
confirmed in lasst period period
Anhui Gujing Group Co., Ltd. Buildings 900,000.00 900,000.00
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Anhui Gujing Group Co., Ltd. Buildings 250,000.00 250,000.00 The Group was the lessor:
Income confirmed in the Income confirmed in last Name of lessee. Type
reporting period period Anhui Ruijing Restaurant Management Co., Ltd. Buildings 28,722.22 0.00 5. Receivables and payables from related parties
(1) Receivables
N/A
(2) Payables
Item Closing balance Opening balance Accounts receivable in advance:
Anhui Ruijing Restaurant Management Co., Ltd. 0.00 108,000.00 Ruijing Trade (Group) Co., Ltd, Shanghai branch company 60,715.99 0.00 Bozhou Gujing Real Estates Development Co., Ltd. 203,670.00 0.00 Anhui Gujing Real Estates Group Co., Ltd. 100,000.00 0.00 Total 364,385.99 108,000.00 Other payables:
Bozhou Huisheng Building Catering Company 10,000.00 0.00 Anhui Ruifuxiang Food Co., Ltd 2,000.00 2,000.00 Holiday Inn Hefei 24,000.00 0.00 Anhui Gujing Hotel Management Co., Ltd. 3,600.00 0.00 Anhui Ruijing Restaurant Management Co., Ltd. 1,200.00 0.00 Bozhou Huisheng Building Catering Company 9,000.00 0.00 Total 49,800.00 2,000.00
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
XIV. Commitments and contingency
1. Significant Commitment
Operating lease commitments
As of the balance sheet date, the irrevocable operating lease contracts that the Company signed externally were as followed:
Item Closing balance Opening balance The lowest payment of irrevocable operating lease:
The first year after balance sheet date 2,300,000.00 2,300,000.00 The second year after balance sheet date 2,300,000.00 2,300,000.00 The third year after balance sheet date 2,300,000.00 2,300,000.00 Subsequent years 27,408,333.33 28,558,333.33 Total 34,308,333.33 35,458,333.33 2. Contingencies
Up to 30 Jun. 2015, there is no contingency event that needs to be disclosed.
XV. Contingencies
Up to 30 Jun. 2015, there is no contingency event that needs to be disclosed.
XVI. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Closing balance
Provision for bad
Book balance
debts
Category Book Proporti Proportion
value Amount Amount
on(%) (%)
Accounts receivable with significant single amount individually withdraw
0.00 0.00 0.00 0.00 0.00 bad debt provision
Accounts receivable withdrawal of bad debt provision of by credit risks 1,879,592. 592,647. 1,286,945. 100 31.53
characteristics:
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Accounts receivable with insignificant single amount individually withdraw
0.00 0.00 0.00 0.00 0.00 bad debt provision
1,879,592. 592,647. 1,286,945. Total
100.00 31.53
91 12 79 (Continued)
Opening balance
Provision for bad
Book balance
debts
Category Book Proporti Proportion
value Amount Amount
on(%) (%)
Accounts receivable with significant single amount individually withdraw
0.00 0.00 0.00 0.00 0.00 bad debt provision
Accounts receivable withdrawal of bad debt provision of by credit risks 2,199,491. 590,662. 1,608,829. 100.00 26.85
characteristics:
74 10 64 Accounts receivable with insignificant single amount individually withdraw
0.00 0.00 0.00 0.00 0.00 bad debt provision
2,199,491. 590,662. 1,608,829. Total
100.00 26.85
74 10 64 1) In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion(%) Within 1 year
Including: within 6 months 171,361.87 1,713.62 1.00 7-12 months 63,250.00 3162.50 5.00 Subtotal of within 1 year 234,611.87 4,876.12 2.08 1-2 years
0.00 0.00 0.00 2-3 years
0.00 0.00 0.00 Over 3 years
587,771.00 587,771.00 100.00 Total 822,382.87 592,647.12 72.06 2) In the groups, accounts receivable adopting other methods to withdraw bad debt provision: Closing balance
Name of the group
Accounts receivable Provision for bad debts Proportion(%)
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Closing balance
Name of the group
Accounts receivable Provision for bad debts Proportion(%) Related party group within combination
1,057,210.04 0.00 0.00 scope
Total 1,057,210.04 0.00 0.00 (2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 1,985.02 in reporting period
(3) Particulars of the actual verification of accounts receivable during the reporting period
There was no actual verification of accounts receivable during the reporting period
(4) Top five of account receivable of closing balance collected by arrears party
The total balance of account receivable of top five was RMB 1,879,592.91,100.00% of the closing balance of account receivable, the relevant total closing balance of bad debt provision was RMB 592,647.12
2. Other account receivable
(1) Other account receivable classified by category
Closing balance
Book balance Provision for bad debts
Category
Proportion Proportion Book value Amount Amount
(%) (%)
Other accounts receivable with significant
single amount individually withdraw bad
50,727,440.55 29.33 50,727,440.55 100.00 0.00 debt provision
Other accounts receivable withdrawal of
bad debt provision of by credit risks
122,223,926.34 70.67 257,688.93 0.21 121,966,237.41 characteristics:
Other accounts receivable with
insignificant single amount individually
0.00 0.00 0.00 0.00 0.00 withdraw bad debt provision
Total
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Opening balance
Book balance Provision for bad debts
Category
Proportion Proportion Book value Amount Amount
(%) (%)
Other accounts receivable with significant
single amount individually withdraw bad
50,727,440.55 28.86 50,727,440.55 100.00 0.00 debt provision
Other accounts receivable withdrawal of
bad debt provision of by credit risks
125,054,444.71 71.14 228,135.16 0.18 124,826,309.55 characteristics:
Other accounts receivable with
insignificant single amount individually
0.00 0.00 0.00 0.00 0.00 withdraw bad debt provision
Total
175,781,885.26 100.00 50,955,575.71 28.99 124,826,309.55 1) Other accounts receivable with significant single amount individually withdraw bad debt provision
Closing balance
Other account receivables Other account Provision for bad
Proportion(%)
Reason
receivable debts
The enterprise got in the Jianqiao Securities 11,840,500.00 11,840,500.00 100.00 bankruptcy liquidation process
The enterprise got in the Hengxin Securities 29,502,438.53 29,502,438.53 100.00 bankruptcy liquidation process
The enterprise got in the Minfa Securities 9,384,502.02 9,384,502.02 100.00 bankruptcy liquidation process
Total 50,727,440.55 50,727,440.55 — — 2) In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
Closing balance
Aging
Other account receivable Provision for bad debts Proportion(%) Within 1 year
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Closing balance
Aging
Other account receivable Provision for bad debts Proportion(%) Including: within 6 months 3,314,599.33 33,145.99 1.00 7-12 months 588,670.00 29,433.50 5.00 Subtotal of within 1 year 3,903,269.33 62,579.49 1.60 1-2 years
211,536.27 21,153.63 10.00 2-3 years
127,672.70 63,836.35 50.00 Over 3 years
110,119.46 110,119.46 100.00 Total 4,352,597.76 257,688.93 5.92 In the groups, other accounts receivable adopting other methods to withdraw bad debt provision: Closing balance
Name of the group
Other account receivable Provision for bad debts Proportion(%) Related party group within
117,871,328.58 0.00 0.00 combination scope
Total 117,871,328.58 0.00 0.00 (2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 29,553.77 in reporting period
(3) Particulars of the actual verification of accounts receivable during the reporting period
There was no actual verification of accounts receivable during the reporting period
(4) Other account receivable classified by account nature
Nature Closing book value Opening book value Intercourse funds between entities within combination scope 117,871,328.58 121,205,957.03 Investment securities 50,727,440.55 50,727,440.55 Margin and pledge cash 1,644,064.25 1,670,464.25 Travel expense 702,265.56 284,256.89 Rent, water, electricity& gas expense 850,866.10 903,964.37 Other 1,155,401.85 989,802.17
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Total 172,951,366.89 175,781,885.26 (5) The top five other account receivable classified by debtor at period end
Closing balance Entity Nature Closing balance Aging Proportion% of bad debt provision Intercourse funds
between entities
First 117,225,000.00 0.5 years 67.78 0.00 within combination
scope
Investment
Second 29,502,438.53 Over 3 years 17.06 29,502,438.53 securities
Investment
Third 11,840,500.00 Over 3 years 6.85 11,840,500.00 securities
Investment Over 3 year
Forth 9,384,502.02 5.43 9,384,502.02 securities s
Fifth Contract money 500,000.00 0-6 months 0.29 5,000.00 Total — 168,452,440.55 — 97.40 50,732,440.55 3. Long-term equity investment
(1) Category of long-term equity investment
Closing balance Opening balance
Item bad debt
Book balance Book value Book balance bad debt provision Book value provision
Investment to the subsidiary
338,089,408.32 338,089,408.32 338,089,408.32 338,089,408.32 Total
338,089,408.32 338,089,408.32 338,089,408.32 338,089,408.32 (2) Investment to the subsidiary
Withdrawn
Closing impairment
balance of Entity Opening balance Increase Decrease Closing balance provision in
impairment the reporting
provision period
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Withdrawn
Closing impairment
balance of Entity Opening balance Increase Decrease Closing balance provision in
impairment the reporting
provision period
Bozhou Gujing Sales
84,864,497.89 0.00 0.00 84,864,497.89 0.00 0.00 Co., Ltd.
Anhui Longrui Glass
85,793,666.00 0.00 0.00 85,793,666.00 0.00 0.00 Co., Ltd
Shanghai Gujing Hotel
49,906,854.63 0.00 0.00 49,906,854.63 0.00 0.00 Management Co., Ltd.
Bozhou Gujing Inn Co.,
648,646.80 0.00 0.00 648,646.80 0.00 0.00 Ltd.
Gujing Motor
6,875,743.00 0.00 0.00 6,875,743.00 0.00 0.00 Transportation Co., Ltd.
Bozhou Gujing
30,000,000.00 0.00 0.00 30,000,000.00 0.00 0.00 Packaging Co., Ltd.
Anhui Swisse Will
Science& Technology
50,000,000.00 0.00 0.00 50,000,000.00 0.00 0.00 Co., Ltd.
Anhui Subway Cordial
30,000,000.00 0.00 0.00 30,000,000.00 0.00 0.00 Wine Co., Ltd.
Total 338,089,408.32 0..00 0.00 338,089,408.32 0.00 0.00 4. Revenues and operating costs
Reporting period Same period of last year Item
Revenues Operating costs Revenues Operating costs Main operations 1,507,439,267.54 833,639,429.06 1,295,349,946.72 733,263,234.94 Other operations 18,722,010.13 15,769,485.94 25,032,105.20 15,949,274.46 Total 1,526,161,277.67 849,408,915.00 1,320,382,051.92 749,212,509.4
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
5. Investment income
Same Reporting
Item period of period
last year Long-term equity investment income accounted by cost method
0.00 0.00 Investment income from disposal of financial assets measured at fair value and changes recorded into 6,695,065.3
108,909.72 9
current profits or losses
Investment income from available for sale financial assets during holding period
286,508.40 45,000.00 30,715,700.
Investment income from disposal of available for sale financial assets
54,052,301. 54
38 37,697,274. 54,206,211. Total
33 10 XVII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
Item Amount Note Loss and gains on disposal of non-current assets
-561,466.87
Governmental subsidy included in the current profits and losses(is closely related with the
business event, except for the governmental subsidy that according to the national unity
3,021,627.75
standard quota or the quantitative regal assets)
In addition to the valid hedging activity associated with the normal operation of the
Company, the changes in fair value through gains or losses which arising from the holding
trading financial assets and the trading financial liabilities as well as the investment income 7,622,904.98
that earning from the disposal of trading financial assets, trading financial liabilities and
available-for-sale financial assets
Income and expenses of the other operation except for the mentioned above
6,245,200.75
Subtotal 16,328,266.61
The effect of income tax
4,082,066.65
The effect of minority interest (after tax)
0.00
Total
12,246,199.96
The reorganization of the non-recurring gains and losses of the Group was executed according to rules of the―Public Offering of
2015 Semi-annual Report of Anhui Gujing Distillery Company Limited
Securities of the Company Disclosure Explanatory Notice No. 1 - - Non-recurringItems‖ (SFC Announcement[2008] No.43). 2. Return on equity (ROE) and earnings per share (EPS)
EPS(Yuan/share)
Profit as of reporting period Weighted average ROE(%)
EPS-basic EPS-diluted
Net profit attributable to
common shareholders of the 8.75 0.76 0.76 Company
Net profit attributable to
common shareholders of the
8.47 0.73 0.73 Company after deduction of
non-recurring profit and loss