2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd. Stock Code: 000869. 200869 Stock Abbreviation: Changyu A, Changyu B Notice No.: 2019-Final 02 Yantai Changyu Pioneer Wine Co., Ltd.
2019 the First Quarter Report Main Body
I. Important Notice
TheCompany’s board of directors, board of supervisors, directors, supervisors and senior executives guarantee the truthfulness, accuracy and completeness of contents contained in this quarter report as well as no unfaithful facts, misleading statements or significant omissions and undertake individual and collective legal liabilities.
All directors attended the board meeting for deliberating this quarter report.
Mr. Zhou Hongjiang (person in charge of the Company) and Mr. Jiang Jianxun (person in charge of accounting work, person in charge of accounting organization and person in charge of accounting) declare to assure the truthfulness, accuracy and completeness of the financial statement in this quarter report.
2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.II、Corporate Information
1. Key accounting data and financial indicators
Whether the Company need to make retroactive adjustments or restate the accounting data of previous fiscal years.
□ Yes√ No
|||||
|-|-|-|-|
||||More or less than the|
|||The same period of||
|Item|This report period||same period of last year|
|||last year||
||||(%)|
|Operating revenue (CNY)|1,667,424,758|1,804,057,976|-7.57%|
|Net profit attributed to the|456,381,471|479,444,238||
|shareholders of the listed|||-4.81%|
|company (CNY)||||
|Net profit attributed to the||||
|shareholders of the listed||||
||450,709,661|466,181,564|-3.32%|
|company after deducting the||||
|irregular profit and loss (CNY)||||
|Net cash flows from the|294,678,342|507,263,964||
||||-41.91%|
|operating activities (CNY)||||
|Basic earnings per share|0.67|0.70||
||||-4.29%|
|(CNY)||||
|Diluted earnings per share|0.67|0.70||
||||-4.29%|
|(CNY)||||
|Weighted average for earning||||
||4.75%|5.24%|-0.49%|
|rate of the net assets||||
||The end of this||More or less than the end|
|||The end of last year||
||report period||of last year (%)|
|Total assets (CNY)|13,317,351,339|13,117,729,052|1.52%|
|Net Assets attributed to the|10,055,194,755|9,606,099,365||
|shareholders of the listed|||4.68%|
|company (CNY)||||

Details of irregular profit and loss
V Yes□ No
Unit：CNY
||||
|-|-|-|
||From beginning of year||
|Item||Explanation|
||to end of report period||
|Gain on disposal of non-current assets, including|||
||1,138||
|the reversal of accrued impairment provision|||
|Government grants credited in profit and loss|||
|(except for those recurring government grants|||
|that are closely related to the entity's operation,|6,172,178||
|in line with related regulations and have proper|||
|basis of calculation)|||

2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
||||
|-|-|-|
|Other non-operating income and expenses|1,259,563||
|Less: Income tax effect|1,741,770||
|Minority interests effect(after-tax)|19,299||
|Total|5,671,810|--|

The reasons shall be made clear and definitely as to the non-recurring profit and loss that the Company has defined by virtue of the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 - Non-recurring Profit and Loss and as to regarding the non-recurring profit and loss as recurrent profit and loss as specified in the Explanatory Announcement on PublicCompany’s Information Disclosure No.1–Non-recurring Profit and Loss.
□AvailableNot available
There is no situation that non-recurring profit and loss is defined and specified as recurrent profit and loss in accordance with the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 - Non-recurring Profit and Loss during the report period.
2. The total number of shareholders and top 10 shareholders at the end of the report period 1) The number of the common shareholders and preferred shareholders with recovered voting power as well as the shareholding of top 10 shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total number of preferred|||0||
|Total number of common shareholders||45,104||shareholders with recovered|||||
|at the end of report period||||voting power at the end of re|||||
|||||port period|||||
|Shareholding of top 10 shareholders|||||||||
|||||||Number|Pledged or||
||Character of||Percentage|||of|frozen||
|Name of Shareholders|||||Shares held||||
||shareholders||(%)|||restricted|Share||
|||||||||Amount|
|||||||shares|status||
|YANTAI CHANGYU GROUPCOMPANY LIMITED|Domestic non-state-ownedlegal person||50.40%||345,473,856|0|||
|||||||||0|
|GAOLING FUND,L.P.|Foreign legalperson||3.08%||21,090,219|0|||
|||||||||0|
|CHINA SECURITIES FINANCECORP|State-ownedlegal person||2.25%||15,440,794|0|||
|BBH BOS S/A FIDELITY FD -CHINA FOCUS FD|Foreign legalperson||2.22%||15,241,826|0|||
|||||||||0|
|SHENWAN HONGYUANSECURITIES(HONGKONG)LIMITED|Foreign legalperson||1.24%||8,492,763|0|||
|||||||||0|
|FIDELITY PURITAN TRUST:FIDELITY SERIES INTRINSICOPPORTUNITIES FUND|Foreign legalperson||0.93%||6,350,762|0|||
|||||||||0|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreign legalperson||0.80%||5,516,796|0|||
|||||||||0|
|CENTRAL HUIJIN ASSETMANAGEMENT LTD.|State-ownedlegal person||0.69%||4,761,200|0|||
|||||||||0|

2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|VANGUARD EMERGINGMARKETS STOCK INDEXFUND|Foreign legalperson||0.55%||3,788,487||0|||
||||||||||0|
|FIDELITY CHINA SPECIALSITUATIONS PLC|Foreign legalperson||0.55%||3,779,202||0|||
||||||||||0|
|Shareholding of top 10 shareholders with unrestricted shares||||||||||
|Name of Shareholders||||Number of||Type of share||||
|||||unrestricted||Type of||Amount||
|||||shares held||share||||
|YANTAI CHANGYU GROUP COMPANY LIMITED||||345,473,856||A share||345,473,856||
|GAOLING FUND,L.P.||||21,090,219||B share||21,090,219||
|CHINA SECURITIES FINANCE CORP||||15,440,794||A share||15,440,794||
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD||||15,241,826||B share||15,241,826||
|SHENWAN HONGYUAN SECURITIES(HONGKONG)LIMITED||||8,492,763||B share||||
|||||||||8,492,763||
|FIDELITY PURITAN TRUST: FIDELITY SERIESINTRINSIC OPPORTUNITIES FUND||||6,350,762||B share||||
|||||||||6,350,762||
|GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED||||5,516,796||B share||5,516,796||
|CENTRAL HUIJIN ASSET MANAGEMENT LTD.||||4,761,200||A share||4,761,200||
|VANGUARD EMERGING MARKETS STOCK INDEXFUND||||3,788,487||B share||||
|||||||||3,788,487||
|FIDELITY CHINA SPECIAL SITUATIONS PLC||||3,779,202||B share||3,779,202||
|||Among the top 10 shareholders, Yantai Changyu Group Company||||||||
|The explanation for the associated||||||||||
|||Limited has no associated relationship or accordant action||||||||
|relationship and accordant action of||||||||||
|||relationship with the other 9 listed shareholders, and the||||||||
|the top 10 shareholders||||||||||
|||relationship among the other shareholders is unknown.||||||||
|Explanation for the top 10 common||||||||||
|shareholders who involved in||||||||||
|||No||||||||
|financing activities and stock trading||||||||||
|business(if any)||||||||||

Whether or not theCompany’s top 10 common shareholders and top 10 common shareholders with unrestricted shares promise to buy back trading during the report period
□ Yes√ No
There are no top 10 common shareholders and top 10 common shareholders with unrestricted shares in the Company promise to buy back trading during the report period.
2) The total number of the preferred shareholders and top 10 preferred shareholders at the end of the report period
□Available√Not available
2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd. III Major Issue
1. Situation and reason of change in major financial data and financial index during the report period
√Available □Not available
Compared the end of the report period with the beginning of the report period: Monetary fund increased by14.28%, mainly due to the reduce in cash outflow for investment activities and
increase in bank deposit. Notes receivable increased by64.09%, mainly due to increased amount of bank acceptances. Advance payment decreased by55.58%, mainly due to the decrease in advance payment for raw material procurement. Interest receivable increased by39.65%, mainly due to the increased interest of bank term deposits. Non-current liabilities due within one year increased by21.39%, mainly due to the transfer of long-term account payable.
Compared with the same period of last year: operating revenue decreased by7.57%, which was caused by four reasons. Firstly, in order to implement the strategy of “Focus on high quality, Focus on mid-to-high end and Focus on big product”, the prices of low-end wines were raised at the end of November 2018. Due to the pressure-bearing process of the market, the low-end wines have fallen sharply. Secondly, due to aging of products as well as relatively concentrated markets, the low-end brandy has shown a downward trend since last year. However, the growth of mid-to-high- end brandy is not enough to make up for the decline of low-end brandy. Thirdly, the sales policy of imported wines has further focused on the acquisition brands including Kilikanoon and Indomita etc, which results in a decline in non-acquisition brands in imported wines and drags down the overall growth of imported wines. Fourthly, listed company adjusted about20% of provincial managers and marketing personnel in February, which also had a certain impact on current indicators.
Compared with the same period of last year: sales expense decreased by14.9%, mainly due to decrease in advertising expense. Financial expense decreased by156.04%, mainly due to offset of financial expense by received loan with discounted interest. Net profit attributable to parent
company decreased by4.81%, mainly due to decrease in income. Net cash flow from operating activities decreased by41.91%, mainly due to reduce in received cash of selling products and providing service. Cash inflow from investment activities increased by9064.93%, mainly due to increase in withdrawal of fixed term deposit. Cash outflow for investment activities decreased by73.86% and net cash flow from investment activities increased by79.14%, mainly due to the reduce in the cash paid for purchasing fixed term deposit. Net increase in cash and cash equivalents
increased by24149.03%, mainly due to reduce in cash outflow for investment activities.
2. Analysis explanation of majorissue’s process, influence and solution
□Available√ Not available
2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd. Implementation progress of share repurchase
□Available√ Not available
Implementation progress of reducing or repurchasing shares by the way of centralized bidding□Available√ Not available
3. The commitments that theCompany’s actual controllers, shareholders, related parties, purchasers, the Company and other related parties do not implement completely
exceeding the time limit within report period
√Available □Not available
||||||||
|-|-|-|-|-|-|-|
||Commitment|Commitment|Commitment|Commitment|Commitment||
|Commitments||||||Implementation|
||Party|Type|content|time|period||
|Commitments atshare reform|||||||
||-||－||||
|Commitmentsmade inacquisitionreport or equitychanges report|||||||
||-||-||-|-|
|Commitments atassetrestructuring|||||||
||-||-||-|-|
|Commitments atthe initial publicoffering orrefinancing|Yantai||||||
||Changyu|Solve||||Has been|
||||Non-horizontal||||
||Group Co.,|horizontal||1997.05.18|Permanent|fulfilling the|
||||competition||||
||Ltd.|competition||||commitment|
||||According to|||According to|
||||Trademark|||Trademark|
||||License|||License|
||||Contract, the|||Contract, the|
||||annual|||annual|
||||trademark use|||trademark use|
||||fee of|||fee charged by|
||||trademarks|||Yantai Changyu|
||Yantai||||||
|||Define the|including “ 张|||Group Co., Ltd.|
||Changyu||||||
|||use of|裕 ” (Changyu)|||should be|
||Group Co.,|||1997.05.18|Permanent||
|||trademark use|paid by the|||mainly used to|
||Ltd.||||||
|||fee|Company to|||publicize|
||||Yantai Changyu|||trademarks|
|||||||including “ 张|
||||Group Co., Ltd.||||
||||should be|||裕 ” (Changyu)|
||||mainly used by|||and contractual|
||||Yantai Changyu|||products. Except|
||||Group Co., Ltd.|||the period from|
||||to publicize|||2013 to 2017|
||||trademarks|||when Yantai|

2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||including “ 张||Changyu Group|
||||裕 ” (Changyu)||Co., Ltd. didn’t|
||||||strictly fulfill the|
||||and contractual|||
||||||commitment,|
||||products.|||
||||||Yantai Changyu|
||||||Group Co., Ltd.|
||||||has been|
||||||fulfilling the|
||||||commitment.|
|Equity incentivecommitments||||||
|Commitmentsmade to theminorityshareholders ofthe Company||||||
||-||-|-|-|
|Commitment||||||
|under timely||||||
||No|||||
|implementation||||||
|or not||||||
|||According to Trademark License Contract (hereafter referred to as “this||||
|||Contract”), Changyu Group promised that the annual trademark use fee paid||||
|||by the Company to Changyu Group would be mainly used by Changyu Group||||
|||to publicize these trademarks and contractual products. However, the above-||||
|||mentioned "mainly" is not a specific number. During the implementation||||
|||process, due to inconsistent understanding, it is easy to cause divergence and||||
|||leads to problems.||||
|||Changyu Group totally charged trademark use fee of CNY420,883,902 from||||
|||2013 to 2017. Based on this Contract, the amount (51% of trademark use fee)||||
|||used for publicity of trademarks including “张裕” (Changyu) and contractual||||
|||products involved in this Contract should be CNY214,650,790, compared to||||
|||which, the amount that has already been used for publicity of trademarks||||
|For commitments that exceed||||||
|||including “张裕” (Changyu) and contractual products involved in this||||
|the time limit and are not||||||
|||Contract is CNY50,025,181 with a balance of CNY164,625,609. In addition,||||
|completed, specific reasons of||||||
|||Changyu Group totally charged 2017 annual and 2018 annual trademark use||||
|not completing the||||||
|||fee of CNY155,623,907 in 2018 and 2019. Based on This Contract, the||||
|implementation and the next||||||
|||amount (51% of trademark use fee) used for publicity of trademarks including||||
|step||||||
|||“张裕” (Changyu) and contractual products involved in this Contract should||||
|||be CNY79,368,193, compared to which, the amount that has already been||||
|||used for publicity of trademarks including “张裕” (Changyu) and contractual||||
|||products involved in This Contract is CNY12,225,187 with a balance of||||
|||CNY67,143,006.||||
|||From 2013 to now, the total balance of trademark use fee used for publicity of||||
|||trademarks including “张裕” (Changyu) and contractual products involved in||||
|||this Contract is CNY231,768,615.||||
|||Changyu Group promised that Changyu Group would use the trademark use||||
|||fee that would be charged for 2019 annual to 2022 annual to offset above-||||
|||mentioned total balance. If it is not enough, the insufficient amount will be||||
|||complemented for one time in 2023; if it is sufficient, Changyu Group will||||

2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
||
|-|
|begin to charge the excess trademark use fee from the year when there|
|generates excess trademark use fee.|
|If Changyu Group is not able to implement the above-mentioned commitment owing|
|to various reasons, the Company will timely supervise and urge Changyu Group to|
|fulfill its commitment and request Changyu Group to raise funds through bank|
|loaning, assets sales and equity sales etc in order to implement the commitment.|
|For detailed information, please refer to the Company’s Announcement of|
|Commitment Issues of Yantai Changyu Group Co., Ltd disclosed on April 4th, 2019.|

 4. Forecast on the operating performance in the period from January to June of 2019
Warning and explanation for the estimation on the possible loss of cumulative net profit in the period from the beginning of this year to the end of the next report period or the great change comparing with same period of last year.
□Available√ Not available
5. Situation of security investment
□Available√ Not available
There is no security investment during the report period.
6. Situation of derivative investment
□Available√ Not available
There is no derivative investment during the report period.
7. The activities registration form of receptions, communication and interview etc. during the report period
□Available√ Not available
There are no activities of receptions, communication and interview etc. during the report period. 8. Situation of illegal external guarantee
□Available√ Not available
There is no illegal external guarantee during the report period.
9. Situation of non-operating fund occupation of controlling shareholders and related parties□Available√ Not available
There is no non-operating fund occupation of controlling shareholders and related parties during the report period.
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
April
27th
2019