ANHUI GUJING DISTILLERY COMPANY LIMITED
SEMI-ANNUAL REPORT 2016
Announcement No. 2016-025
August 2016
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well as the directors, supervisors and senior management of Anhui Gujing Distillery Company Limited (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of the Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
Liang Jinhui, head of the Company, Ye Changqing, accounting head for the Report, and Zhu Jiafeng, head of the accounting organ (head of accounting), hereby guarantee that the Financial Report carried in the Report is factual, accurate and complete.
The Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Contents
Section I Important Statements, Contents and Terms .................................................................... 2 Section II Corporate Profile .............................................................................................................. 5 Section III Highlights of Accounting Data and Financial Indicators ............................................ 7 Section IV Report by the Board of Directors .................................................................................. 9 Section V Significant Events ........................................................................................................... 18 Section VI Changes in Shares& Shareholders ............................................................................. 23 Section VII Preference Shares......................................................................................................... 28 Section VIII Directors, Supervisors and Senior Management Staffs .......................................... 29 Section IX Financial Report ............................................................................................................ 30 Section X Documents Available for Reference ............................................................................ 153
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Terms
|||
|-|-|
|Term|Meaning|
|Company, the Company, Gu Jing|Anhui Gujing Distillery Company Limited|
|Group, the Group|Anhui Gujing Distillery Company Limited (consolidated)|
|Gujing Group|Anhui Gujing Group Co., Ltd.|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section II Corporate Profile
I Corporate information
|||||
|-|-|-|-|
|Stock name|Gujing Distillery, Gujing Distillery B|Stock code|000596, 200596|
|Stock exchange|Shenzhen Stock Exchange|||
|Company name in Chinese|安徽古井贡酒股份有限公司|||
|Abbr. (if any)|古井|||
|Company name in English (if||||
||ANHUI GUJING DISTILLERY COMPANY LIMITED|||
|any)||||
|Abbr. (if any)|GU JING|||
|Legal representative|Liang Jinhui|||

II Contact information
||||
|-|-|-|
||Board Secretary|Securities Representative|
|Name|Ye Changqing|Ma Junwei|
||Gujing Town, Bozhou City, Anhui|Gujing Town, Bozhou City, Anhui|
|Address|||
||Province, P.R.China|Province, P.R.China|
|Tel.|(0558) 5712231|(0558) 5710057|
|Fax|(0558)5317706|(0558) 5317706|
|E-mail|gjzqb@gujing.com.cn|gjzqb@gujing.com.cn|

III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the Company during the Reporting Period?
□ Applicable√ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting Period?
□ Applicable√ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Report and the location where the Report is placed did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable√ Not applicable
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section III Highlights of Accounting Data and Financial Indicators I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||Reporting Period|Same period of last year|+/- (%)|
|Operating revenues (RMB)|3,045,034,706.73|2,713,042,828.92|12.24%|
|Net profit attributable to shareholders of|431,055,462.62|380,504,804.17||
||||13.29%|
|the Company (RMB)||||
|Net profit attributable to shareholders of||||
||423,236,352.49|368,258,604.21|14.93%|
|the Company after excluding exceptional||||
|profit and loss (RMB)||||
|Net cash flows from operating activities|326,112,612.99|336,217,657.83||
||||-3.01%|
|(RMB)||||
|Basic earnings per share (RMB/share)|0.86|0.76|13.16%|
|Diluted earnings per share (RMB/share)|0.86|0.76|13.16%|
|Weighted average return on equity (%)|8.54%|8.75%|-0.21%|
||As at the end of the|||
|||As at the end of last year|+/- (%)|
||Reporting Period|||
|Total assets (RMB)|8,762,569,335.47|7,183,147,641.13|21.99%|
|Net assets attributable to shareholders of|5,196,297,183.36|4,833,721,630.08||
||||7.50%|
|the Company (RMB)||||

II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under international and Chinese accounting standards
□ Applicable√ Not applicable
No such differences for the Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas and Chinese accounting standards
□ Applicable√ Not applicable
No such differences for the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 III Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Note|
|Profit/loss on disposal of non-current assets (including offset|-4,318,558.07||
|amount of asset impairment provisions)|||
|Government grants charged to the profit/loss for the Reporting|3,899,636.68||
|Period (except for the government grants closely related to the|||
|business of the Company and given at a fixed quota or amount in|||
|accordance with the State’s uniform standards)|||
|Profit/loss on fair value changes of transactional financial assets|7,374,385.49||
|and liabilities & investment income from disposal of transactional|||
|financial assets and liabilities as well as financial assets available|||
|for sale, except for effective hedges related to normal business|||
|operations of the Company|||
|Non-operating income and expense other than the above|3,470,016.08||
|Less: Corporate income tax|2,606,370.05||
|Total|7,819,110.13|--|

Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss□ Applicable√ Not applicable
No such cases in the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section IV Report by the Board of Directors
I Overview
2016 has continued to see obvious downward pressure onChina’s economy, with complexity and volatility in the environment at home and abroad. Despite signs of recovery in the distilled spirits industry, which had been in hibernation, the industry as a whole is still going through deep change with continuous pressure.
Under the common efforts of the Board and all the other staff, for the six months from January to June 2016, we achieved operating revenues of RMB3.045 billion, up12.24% year on year; and net profit of RMB431 million, representing a year-on-year growth of13.29%. As such, the operating goals that we had set for the first half of 2016 at the beginning of the year were all accomplished. To achieve that, we took the following main measures in the reporting period:① following a strategy of “from the high-end market to other markets, from the international market to the domestic market” to extend our brand influence;② optimizing our market competitive strategy through pushing forward the campaign to bring our products to more channels, stores and consumers as well as through expanding our marketing channels to low-tier cities;③ further improving our brewing technique to increase our product quality;④ pushing forward market internalization, reforming our management methods and optimizing our human resource; and⑤ accelerating automation, informatization and intelligentization through the “5.0” strategy.
II Analysis of main business
YoY movements in major financial data
Unit: RMB
||||||
|-|-|-|-|-|
|||||Main reason for|
||Reporting Period|Same period of last year|YoY +/-%||
|||||movement|
|Operating revenues|3,045,034,706.73|2,713,042,828.92|12.24%||
|Operating costs|780,394,434.66|827,578,527.59|-5.70%||
|Selling expenses|1,013,923,133.24|794,226,823.89|27.66%||
|Administrative expenses|257,077,455.72|237,926,770.64|8.05%||
|Finance costs|-9,764,161.14|-8,593,975.74|-13.62%||
|Corporate income tax|144,981,768.68|132,550,174.27|9.38%||
|Net cash flows from|326,112,612.99|336,217,657.83|||
||||-3.01%||
|operating activities|||||
|Net cash flows from|-225,265,330.93|-114,449,347.71||Net increase in cash paid|
||||-96.83%||
|investing activities||||to acquire subsidiaries|
|Net cash flows from|-50,360,000.00|0.00||Payment of dividends to|
||||-100.00%||
|financing activities||||ordinary shareholders|
||50,487,282.06|221,768,310.12||Payment for investment|
|Net increase in cash and|||-77.23%||
|||||and payment of|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||
|-|-|-|-|-|
|cash equivalents||||dividends|
|Financial assets that are|3,175,807.27|322,223.28|||
|measured at fair value|||||
|||||The main reason for the|
|and whose movements|||||
||||885.59%|increase in the purchase|
|are included in the profit|||||
|||||of financial assets.|
|and loss of the current|||||
|period|||||
||1,270,576,488.25|539,442,903.31||The main reason for the|
|||||increase in the proportion|
|Note receivable|||135.53%||
|||||of bills due to the|
|||||settlement|
||22,597,880.76|8,617,955.68||The main reason for the|
|Other receivables|||162.22%|increase in the scope of|
|||||the merger.|
||23,322,200.71|62,562,971.78||The main reason for the|
|||||project construction is|
|Construction project|||-62.72%|expected to be used in|
|||||the state, due to the|
|||||transfer of fixed assets.|
||708,186,627.83|298,372,239.96||The main reason for the|
|intangible assets|||137.35%|increase in the scope of|
|||||the merger.|
||1,059,316,464.50|608,565,152.50||The main reason is the|
|Payment in advance|||74.07%||
|||||increase in sales orders.|
||119,413,770.33|20,463,660.87||The main reason is not|
|||||the same control|
|Deferred Tax Liability|||483.54%||
|||||enterprise merger assets|
|||||evaluation caused by.|
||772,094,221.14|452,193,188.94||The main reason is the|
|Other payable|||70.74%|increase in deposit and|
|||||deposit.|

Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Review the reporting period progress of any previously disclosed business plan:
In the reporting period, we carried out our work according to our development strategy and annual operating plan, with the progress
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 meeting the schedule.
III. Breakdown of main business
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|||
||||||Increase/decrease|Increase/decrease|
||Operating|||of operating|||
|||Operating cost|Gross profit rate||of operating cost|of gross profit|
||revenue|||revenue over last|||
||||||over last year|rate over last year|
|||||year|||
|Classified by industry:|||||||
|Manufacture|3,045,034,706.73|780,394,434.66|74.37%|12.24%|-5.70%|4.88%|
|Classified by product:|||||||
|Distilled spirit|||||||
||2,973,449,794.40|746,662,345.73|74.89%|12.20%|-6.55%|5.04%|
|products|||||||
|Hotel service|40,919,489.59|17,287,727.65|57.75%|4.52%|9.02%|-1.74%|
|Other|30,665,422.74|16,444,361.28|46.37%|28.55%|29.35%|-0.33%|
|Classified by region:|||||||
|Domestic|3,045,034,706.73|780,394,434.66|74.37%|12.24%|-5.70%|4.88%|
|Overseas|0.00|0.00|--|-100%|-100%|--|

 IV. Core competitiveness analysis
In the reporting period, no changes occurred to our core competitiveness in equipment, patents, non-proprietary technology, franchise rights, land use rights, trademark use rights, etc., with no impact on the Company.
V. Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
√ Applicable□ Not applicable
||||
|-|-|-|
|Investments in external parties|||
|Investment amount in the Reporting Period|Investment amount in the same period of||
|||+/-%|
|(RMB Yuan)|last year (RMB Yuan)||
|816,000,000.00|0.00|100.00%|
|Particulars about investees|||
|||Proportion of the Company’s investment in|
|Name of investee|Main business||
|||the investee’s total equity interests (%)|
|Wuhan Pride Yellow Crane Tower|Production and sales of distilled spirit|51.00%|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Distillery Co., Ltd.|

(2) Equity-holdings in financial enterprises
□ Applicable√ Not applicable
No such cases in the reporting period.
(3) Securities investments
√Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Shareholdi||||Gain/los|||
|||||Number||Number|Shareholdi|||||
|Variety|Code|Name|Initial||ng||||s for|||
|||||of shares||of shares|ng|Closing||||
|of|of|of|investment||percentage||||reporting|Accounting|Source|
|||||held at||held at|percentage|book value||||
|securiti|securiti|securiti|cost (RMB||at||||period|title|of stock|
|||||period-be||period-e|at|(RMB Yuan)||||
|es|es|es|Yuan)||period-beg||||(RMB|||
|||||gin||nd|period-end|||||
||||||in||||Yuan)|||
|||||||||||Available-for-||
||||44,362,929.|10,485,10||14,877,1||47,755,491.|141,172.||Self-own|
|Stock|601988|ZGYH||||||||sale financial||
||||40|0||00||00|16||ed funds|
|||||||||||assets||
|||||||||||Available-for-||
||||34,153,645.|||4,211,66||36,641,476.|170,480.||Self-own|
|Stock|000001|PAYH||2,219,720||||||sale financial||
||||37|||4||80|24||ed funds|
|||||||||||assets||
|||||||||||Available-for-||
||||91,133,996.|||6,445,12||133,736,240|||Self-own|
|Stock|600373|ZWCM||6,445,120|||||0.00|sale financial||
||||80|||0||.00|||ed funds|
|||||||||||assets||
||||169,650,571|19,149,94||25,533,8||218,133,207|311,652.|||
|Total|||||--||--|||--|--|
||||.57|0||84||.80|40|||
|Disclosure date of the||||||||||||
|board announcement on||||||||||||
|approval of the||||||||||||
|securities investment||||||||||||
|Disclosure date of the||||||||||||
|general meeting||||||||||||
|announcement on||||||||||||
|approval of the||||||||||||
|securities investment (if||||||||||||
|any)||||||||||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (4) Shareholdings in other listed companies
□ Applicable√ Not applicable
No such cases in the Reporting Period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(2) Derivative investment
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(3) Entrustment loans
□ Applicable√ Not applicable
No such cases in the reporting period.
3. Particulars about the use of raised funds
√ Applicable□ Not applicable
(1) Overview of the use of raised funds
√ Applicable□ Not applicable
Unit:RMB’0,000
|||
|-|-|
|Total amount of raised funds|122,749.95|
|Total amount of raised funds input in the reporting||
||1,257.12|
|period||
|Total amount of raised funds accumulatively input|108,269.86|
|Total amount of the raised funds with modified||
||0|
|purposes during the reporting period||
|Total amount of the accumulative raised funds with||
||0|
|modified purposes||
|Proportion of the total amount of the accumulative||
||0.00%|
|raised funds with modified purposes||
|Overview of the use of raised funds||
|The Company’s raised funds were used stably as scheduled, without any changes.||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (2) Projects promised to be invested with raised funds
√ Applicable□ Not applicable
Unit:RMB’0,000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Date||||
||Project|||||Investment|when the|||Material|
|Projects invested with|||||Accumulative|||Profit|Reach||
||changed|Raised|Investment|Input in||progress|project|||change in|
|raised capital as|||||input up to|||generated|the||
||or not|capital|after|the||up to the|reaches|||the|
|promised and|||||the|||in the|expected||
||(including|input as|adjustment|reporting||period-end|the|||project|
|investments with|||||period-end|||reporting|profit or||
||partially|promised|(1)|year||(%)(3)＝|expected|||feasibility|
|over-raised capital|||||(2)|||period|not||
||changed)|||||(2)/(1)|usable|||or not|
||||||||condition||||
|Projects invested with raised capital as promised|||||||||||
|Technological|||||||||||
|Transform on the|||||||30 Apr.||||
||No|13,500|12,194.42|0.00|12,247.9|100.44%|||Yes|No|
|Brewage of|||||||||||
||||||||2014||||
|High-quality Base|||||||||||
|Wine|||||||||||
|Construction of Base|||||||||||
||||||||30 Apr.||||
|Wine Blending &|No|68,600|65,921.06|1,065.45|60,708.87|92.09%|||Yes|No|
|Filling Centre and|||||||2014||||
|Ancillary Facilities|||||||||||
||||||||30 Apr.||||
|Construction of|No|27,500|27,500|191.67|18,288.03|66.50%|||Yes|No|
|Marketing Network|||||||2014||||
||||||||31 Dec.||||
|Brand Promotion|No|17,000|17,000|0.00|17,025.06|100.15%|||Yes|No|
||||||||2012||||
|Subtotal of promised|||||||||||
||--|126,600|122,615.48|1,257.12|108,269.86|--|--||--|--|
|investment projects|||||||||||
|Investments of over-raised capital|||||||||||
|Naught|||||||||||
|Total|--|126,600|122,615.48|1,257.12|108,269.86|--|--|0|--|--|
|Reason for failing to|||||||||||
|reach scheduled|||||||||||
|progress or projected|Naught||||||||||
|income (explain one|||||||||||
|project by one project)|||||||||||
|Explanation on|||||||||||
|significant changes in|Naught||||||||||
|feasibility of projects|||||||||||
|Amount, usage and|Not applicable||||||||||
|usage progress of|||||||||||
|over-raised capital|||||||||||
|Change of the|Not applicable||||||||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|implementation||
|location of any raised||
|funds investment||
|project||
|Adjustment of the|Not applicable|
|implementation||
|method of any raised||
|funds investment||
|project||
||Applicable|
||In accordance with the explanation of the Particulars on the Private Issuance of A-share of Anhui GujingDistillery Co., Ltd. and the Listing Announcement, “Before the raised proceeds being in place, the Companycan use the self-raised proceeds to input preliminarily in accordance with the actual progress of raisedproceeds investment projects; after the raised proceeds being in place, the Company can use the raisedproceeds to replace the self-raised proceeds preliminarily input”. And the Proposal on Using the RaisedProceeds to Replace the Self-raised Proceeds Preliminarily Input to the Raised Proceeds Investment Projectswas reviewed and approved at the 7th Session of the 6th Board of Directors, which agreed to use the raisedproceeds to replace the self-raised proceeds of RMB27,058,143.42 preliminarily input to the raised proceedsinvestment projects. The above funds replacement was completed on 6 January 2012.|
|Advanced input and||
|exchange of any||
|raised funds||
|investment project||
|Idle raised capital for|Not applicable|
|temporarily||
|supplementing||
|working capital||
||Applicable|
||1. The Company strictly carried out the purchase system and the project bidding way, which better controlledthe project construction and purchase cost and under the premise of guaranteeing the project quality with theprinciples of practicing strict economy, the Company further strengthened the project expenses control,supervisor and management in the process of the execution which reduced the total cost of the investmentproject of the raised funds. 2. The surplus reason of the marketing network construction project was due to therather big changes of the liquor market environment and the third party logistics system gradually becomingmore and more mature and at the same time, the Company would no more execute the center project of HefeiLogistics for reducing the fixed operating cost of the Company, which caused the capital surplus of theproject.|
|Outstanding raised||
|funds in project||
|implementation and||
|reasons||
|Usage and||
|whereabouts of|Deposited in the special account for raised proceeds.|
|unused raise capital||
|Problems found in the||
|usage and disclosure||
|affairs of raised|Naught|
|capital and other||
|situations||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (3) Changes in projects invested with raised funds
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Analysis to main subsidiaries and shareholding companies
√ Applicable□ Not applicable
Main subsidiaries and shareholding companies
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|Compan|Compan|Industr||Registered|||Operating|Operating||
||||products/servic||Total assets|Net assets|||Net profit|
|y name|y variety|y||capital|||revenues|profit||
||||es|||||||
||||Wholesales of|||||||
||||distilled spirit,|||||||
|Bozhou||||||||||
|||Busine|construction|||||||
|Gujing|Subsidiar|||84,864,497.|2,401,810,413.|314,863,202.|2,902,945,573.|232,519,520.|171,808,153.|
|||ss|materials,|||||||
|Sales|y|||89|62|15|87|37|25|
|||trading|feeds and|||||||
|Co., Ltd||||||||||
||||assistant|||||||
||||materials|||||||

5. Particulars about significant projects invested with non-raised funds
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI. Predict the operating results of January-September 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable√ Not applicable
VII. Explanation by the Board of Directors and the Supervisory Committee about the “non-standard audit report” issued by the CPAs firm for the Reporting Period
□ Applicable√ Not applicable
VIII. Explanation by the Board of Directors about the “non-standard audit report” for last year
□ Applicable√ Not applicable
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 IX. Implementation of profit allocation during the Reporting Period
Formulation, execution or adjustment of theCompany’s profit distribution policy, especially the cash dividend policy, during the Reporting Period:
√ Applicable□ Not applicable
On 26 May 2016, the 2015 Annual General Meeting of the Company reviewed and approved the 2015 Profits distribution plan: based on the total shares of 503,600,000 shares as on 31 December 2015, a cash dividend ofRMB1.00股为(tax included) to all shareholders for every 10 shares they held, with the total dividends paid out totaling RMB50,360,000.00. The retained profits would carry over to the next year. The announcement on the dividend payout was disclosed on China Securities Journal, Shanghai Securities News, Ta Kung Pao and www.cninfo.com.cn on 21 June 2016.
|||
|-|-|
|Special statement about the cash dividend policy||
|In compliance with the Company’s Articles of Association and||
||Yes|
|the resolution of the general meeting||
|Specific and clear dividend standard and ratio|Yes|
|Complete decision-making procedure and mechanism|Yes|
|Independent directors fulfilled their responsibilities and played||
||Yes|
|their due role.||
|Minority shareholders have the chance to fully express their||
|opinion and desire and their legal rights and interests were fully|Yes|
|protected.||
|In adjustment or alteration of the cash dividend policy, the||
|conditions and procedure were in compliance with regulations|Not applicable|
|and transparent.||

X. Pre-plan for profit allocation and turning capital reserve into share capital for the Reporting Period
□ Applicable√ Not applicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital for the Reporting Period.
XI. Particulars about researches, visits and interviews received in this Reporting Period□ Applicable√ Not applicable
No such in the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 V. Significant Events
I. Corporate governance
Since foundation, the Company constantly perfects corporate governance structure and standardize its management strictly in accordance with the Company Law, Securities Law, Standard for Governance of Listed Companies, Guide Opinion on Setting up Independent Directors Systems for Listed Companies as well as principles and requirements of other relevant laws, regulations and normative documents. In the reporting period, as per requirements of Basic Standard for Enterprise Internal Control and Shenzhen Stock Exchange Guideline on Internal Control of Listed Companies, the Company developed internal control activity, perfected internal control system step by step, promoted normative operation and healthy development. The Board of Directors, the Supervisory Committee and the management of the Company make decisions, perform rights and assume obligation strictly according to the standard operation rules and inner control system so as to make sure the standard operation of the Company in the frame of rules and systems.
In the Reporting Period, according to requirements of China Securities Regulatory Commission and Rules for Listing of Shares in Shenzhen Stock Exchange and with the “open, fair and just” principle, the Company seriously and timely performed information disclosure obligation and guaranteed that the information disclosed is true, accurate and complete, free from fictitious presentation, misleading statements or important omissions, so that all the shareholders will equally acquaint themselves with all the notices of the Company.
During the Reporting Period, the actual situation of the corporate governance had no difference with the Company Law and the requirements of the relevant regulations of the CSRC.
II. Litigations
Significant litigations and arbitrations
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Other litigations
□ Applicable√ Not applicable
III. Media query
□ Applicable√Not applicable
The Company was not involved in any media query in the Reporting Period.
IV. Bankruptcy or Reorganization Events
□ Applicable√ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 V. Transaction in Assets
1. Purchase of assets
√ Applicable□ Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Relationsh|||
|||||||||ip between|||
|||||||Ratio of||the|||
||||||Influence|the net||transaction|||
|||||Influence|||||||
||||||on the|profit||party and|||
|Transactio|Asset|Transactio||on the|||Related-pa||||
||||||gains and|contribute||the|Disclosure||
|n party or|acquired|n price|Progress|operation|||rty|||Disclosure|
||||||losses of|d by the||Company|date (note||
|ultimate|or bought|(RMB’0,0|(note 2)|of the|||transaction|||index|
||||||the|asset to the||(applicable|5)||
|controller|in|00)||Company|||or not||||
||||||Company|Company||for|||
|||||(note 3)|||||||
||||||(note 4)|to the total||related-par|||
|||||||profit||ty|||
|||||||||transaction|||
|||||||||s)|||
|||||Strengthen|||||||
|||||ed the|||||||
|||||developme|||||||
|||||nt of the|||||||
|||||distilled|||||||
||||51%||||||||
|||||spirit||||||See the|
||||equities of||||||||
|||||business of||||||details of|
||||Wuhan||||||||
|||||the||||||the|
||51%||Pride||||||||
|||||Company,||||||Announce|
||equities of||Yellow||||||||
|Wuhan||||accelerated||||||ment on|
||Wuhan||Crane||||||||
|Pride||||the||||||the Assets|
||Pride||Tower||||||||
|Investment||||national||||Not|29 Apr.|Purchase|
||Yellow|81,600|Distillery||587.83|1.36%|No||||
|Group Co.,||||layout of||||applicable|2016|of the|
||Crane||Co., Ltd.||||||||
|Ltd., Yan||||the||||||Company|
||Tower||had||||||||
|Hongzhi||||products||||||on 29|
||Distillery||transferred||||||||
|||||market and||||||April 2016|
||Co., Ltd.||under the||||||||
|||||enhanced||||||on|
||||name of||||||||
|||||the brand||||||www.cninf|
||||the||||||||
|||||impact as||||||o.com.cn|
||||Company||||||||
|||||well as the|||||||
|||||business|||||||
|||||scope of|||||||
|||||the|||||||
|||||Company.|||||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 2. Sale of assets
□ Applicable√ Not applicable
There is no sale of assets in the Company during the Reporting Period.
3. Business combination
√ Applicable□ Not applicable
For strengthening the development of the distilled spirits business and accelerating the national layout of the products market as well as enhancing of the brand impact with the business scope, the Company completed the purchase of the51% equities of Wuhan Pride Yellow Crane Tower Distillery during the Reporting Period, which is thus included in the consolidated scope of the 2016 Semi-annual Report.
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable√ Not applicable
There is no equity incentive plan and its implementation in the Company during the Reporting Period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
□ Applicable√ Not applicable
There is no related-party transaction concerning routine operating in the Company during the Reporting Period.
2. Related-party transactions arising from asset acquisition or sale
□ Applicable√ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the Reporting Period. 3. Related-party transitions with joint investments
□ Applicable√ Not applicable
The Company was not involved in any related-party transaction with joint investments during the Reporting Period.
4. Credits and liabilities with related parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
5. Other significant related-party transactions
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 VIII. Particulars about the non-operating occupation of funds by the controlling shareholder and other related parties of the Company
□ Applicable√ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties during the Reporting Period.
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable√ Not applicable
There was no any trusteeship of the Company in the Reporting Period.
(2) Contract
□ Applicable√ Not applicable
There was no any contract of the Company in the Reporting Period.
(3) Lease
□ Applicable√ Not applicable
There was no any lease of the Company in the Reporting Period.
2. Guarantees provided by the company
□ Applicable√ Not applicable
There was no any guarantee provided by the Company in the Reporting Period.
3. Other significant contracts
□ Applicable√ Not applicable
There was no other significant contract of the Company in the Reporting Period.
4. Other significant transactions
□ Applicable√ Not applicable
There was no other significant transaction of the Company in the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 X. Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the Reporting Period□ Applicable√ Not applicable
No such situation of the Company during the Reporting Period.
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes√ No
This semi-annual report is un-audited.
XII. Punishment and Rectification
□ Applicable√ Not applicable
There was no any punishment and rectification of the Company in the Reporting Period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable√ Not applicable
There was no any delisting risk of illegal or violation of the Company in the Reporting Period.
XIV. Explanation about other significant matters
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XV. Related situation of the corporate bonds
Whether there was any public issuance of the corporate bonds which listed on the securities exchange that had not due on the approved presentation date of the half-annual report or failed to pay in full amount.
No
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section VI. Change in Shares& Shareholders
I. Changes in shares
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before this change||Increase/decrease (+, -)|||||After the change||
||||Issuance||Capitalization|||||
|||||Bonus||||||
||Amount|Proportion|o f new||of public|Other|Subtotal|Amount|Proportion|
|||||share||||||
||||shares||reserve fund|||||
|I. Shares subject to trading||||||||||
||900|0.00%||||||900|0.00%|
|moratorium||||||||||
|1. Other domestic shares|900|0.00%||||||900|0.00%|
|Shares held by||||||||||
||900|0.00%||||||900|0.00%|
|domestic individuals||||||||||
|II. Shares not subject to||||||||||
||503,599,100|100.00%||||||503,599,100|100.00%|
|trading moratorium||||||||||
|1. Ordinary shares||||||||||
||383,599,100|76.17%||||||383,599,100|76.17%|
|denominated in RMB||||||||||
|2. Domestically listed||||||||||
||120,000,000|23.83%||||||120,000,000|23.83%|
|foreign shares||||||||||
|III. Total of shares|503,600,000|100.00%||||||503,600,000|100.00%|

 Reasons for changes in share
□ Applicable√ Not applicable
Approval of share changes
□ Applicable√ Not applicable
Transfers in share changes
□ Applicable√ Not applicable
Influence of share changes towards financial indexes in the latest year and latest period such as basic EPS and diluted EPS, and net assets per share belonging to shareholder with ordinary share
□ Applicable√ Not applicable
Other contents that the Company thinks necessary or is asked by securities regulators to be disclosed
□ Applicable√ Not applicable
Explanation of the changes in the sum of the shares and the structure of the shareholders and the structure of the assets as well as the liabilities of the Company
□ Applicable√ Not applicable
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 II. Number of shareholders and shareholding
Unit: Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Total number of preferred|||||
|Total number of common|||||||||||
|||||||shareholders that had restored the|||||
|shareholders at the end of the||19,231|||||||||
|||||||voting right at the end of the|||||
|Reporting Period|||||||||||
|||||||Reporting Period (if any) (note 8)|||||
|Shareholding of common shareholders holding more than 5% shares or the top 10 of common shareholders|||||||||||
||||||Increase||||Pledged or frozen shares||
|||||Number of|and||Number of|Number of|||
|||||shareholding|decrease||shares held|shares held|||
|Name of|Nature of||Holding||||||||
|||||at the end of|of shares||subject to|not subject|Status of|Number of|
|shareholder|shareholder||percentage||||||||
|||||the reporting|during||trading|to trading|shares|shares|
|||||period|reporting||moratorium|moratorium|||
||||||period||||||
|ANHUI GUJINGGROUPCOMPANYLIMITED|State-ownedcorporation||53.89%|271,404,022|0|||271,404,022|||
||||||||||Pledged|114,000,000|
|GAOLINGFUND,L.P.|Foreigncorporation||2.47%|12,446,408|1,335,766|||12,446,408|||
|NORGES BANK|Foreigncorporation||2.43%|12,217,246|2,214,387|||12,217,246|||
|UBS(LUXEMBOURG)S.A.|Foreigncorporation||2.41%|12,150,199|-83,281|||12,150,199|||
|GREENWOODSCHINA ALPHAMASTER FUND|Foreigncorporation||1.71%|8,627,598|0|||8,627,598|||
|CENTRAL HUIJINASSETMANAGEMENTCO., LTD.|State-ownedcorporation||1.30%|6,543,600|0|||6,543,600|||
|CHINA INT'LCAPITAL CORPHONG KONGSECURITIES LTD|Foreigncorporation||1.13%|5,684,059|36,099|||5,684,059|||
|CHINACONSTRUCTIONBANKCORPORATION－|Other||0.79%|4,000,000|4,000,000|||4,000,000|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|E-FUND NEWSILK ROADFLEXIBLECONFIGURATIONHYBRIDSECURITIESINVESTMENTFUNDS||||||||
|GOLDEN CHINAMASTER FUND|Foreigncorporation|0.75%|3,786,434|0|3,786,434|||
|3W GREATERCHINA FOCUSFUND|Foreigncorporation|0.70%|3,529,479|0|3,529,479|||
|Strategic investor or general||||||||
|corporation becoming a top ten||||||||
|||Not applicable||||||
|shareholder due to placing of new||||||||
|shares (if any) (note 3)||||||||
|||Among the shareholders above, the Company’s controlling shareholder—Anhui Gujing||||||
|||Group Company Limited—is not a related party of other shareholders; nor are they parties||||||
|Explanation on associated relationship||||||||
|||acting in concert as defined in the Administrative Measures on Information Disclosure of||||||
|or/and persons acting in concert||||||||
|||Changes in Shareholding of Listed Companies. As for the other shareholders, the Company||||||
|among the above-mentioned||||||||
|||does not know whether they are related parties or whether they belong to parties acting in||||||
|shareholders||||||||
|||concert as defined in the Administrative Measures on Information Disclosure of Changes in||||||
|||Shareholding of Listed Companies.||||||
|Particulars about shares held by top 10 common shareholders not subject to trading moratorium||||||||
|||Number of shares held not subject to trading moratorium||||Type of share||
|Name of shareholder||||||||
|||at the end of the period||||Type of share|Number|
|ANHUI GUJING GROUPCOMPANY LIMITED||271,404,022||||RMB ordinary||
||||||||271,404,022|
|||||||share||
|GAOLING FUND,L.P.||12,446,408||||Domestically||
|||||||listed foreign|12,446,408|
|||||||share||
|NORGES BANK||12,217,246||||Domestically||
|||||||listed foreign|12,217,246|
|||||||share||
|UBS (LUXEMBOURG) S.A.||12,150,199||||Domestically||
|||||||listed foreign|12,150,199|
|||||||share||
|GREENWOODS CHINA ALPHAMASTER FUND||8,627,598||||Domestically||
|||||||listed foreign|8,627,598|
|||||||share||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||
|-|-|-|-|
|CENTRAL HUIJIN ASSETMANAGEMENT CO., LTD.|6,543,600|RMB ordinary||
||||6,543,600|
|||share||
|CHINA INT'L CAPITAL CORPHONG KONG SECURITIES LTD|5,684,059|Domestically||
|||listed foreign|5,684,059|
|||share||
|CHINA CONSTRUCTION BANKCORPORATION － E-FUND NEWSILK ROAD FLEXIBLECONFIGURATION HYBRIDSECURITIES INVESTMENTFUNDS|4,000,000|||
|||RMB ordinary||
||||4,000,000|
|||share||
|GOLDEN CHINA MASTER FUND|3,786,434|Domestically||
|||listed foreign|3,786,434|
|||share||
|3W GREATER CHINA FOCUSFUND|3,529,479|Domestically||
|||listed foreign|3,529,479|
|||share||
|Explanation on associated relationship||||
||Among the shareholders above, the Company’s controlling shareholder—Anhui Gujing|||
|among the top ten shareholders of||||
||Group Company Limited—is not a related party of other shareholders; nor are they parties|||
|tradable share not subject to trading||||
||acting in concert as defined in the Administrative Measures on Information Disclosure of|||
|moratorium, as well as among the top||||
||Changes in Shareholding of Listed Companies. As for the other shareholders, the Company|||
|ten shareholders of tradable share not||||
||does not know whether they are related parties or whether they belong to parties acting in|||
|subject to trading moratorium and top||||
||concert as defined in the Administrative Measures on Information Disclosure of Changes in|||
|ten shareholders, or explanation on||||
||Shareholding of Listed Companies.|||
|acting-in-concert||||
|Particular about shareholder||||
|participate in the securities lending||||
||Not applicable|||
|and borrowing business (if any) (note||||
|4)||||

Did any top 10 common shareholders or the top 10 common shareholders not subject to trading moratorium of the Company carry out an agreed buy-back in the Reporting Period?
□ Yes√ No
The top 10 common shareholders or the top 10 common shareholders not subject to trading moratorium of the Company had not carried out any agreed buy-back in the Reporting Period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable√ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable√ Not applicable
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 There was no any change of the actual controller of the Company in the Reporting Period.
IV. Particulars on shareholding increase scheme during the Reporting Period proposed or implemented by the shareholders and act-in-concert persons
□ Applicable√ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the Reporting Period proposed or implemented by the shareholders and act-in-concert persons.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section VII. Preferred Shares
□ Applicable√ Not applicable
There was no any preferred share of the Company during the Reporting Period.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section VIII. Directors, Supervisors, Senior Management Staffs I. Changes in shareholding of Directors, Supervisors and Senior Management Staffs
□ Applicable√ Not applicable
There was no change in shareholding of Directors, Supervisors and Senior Management Staffs, for the specific information please refer to the 2015 Annual Report.
II. Changes in Directors, Supervisors and Senior Management Staffs
□ Applicable√ Not applicable
There was no change in Directors, Supervisors and Senior Management Staffs, for the specific information please refer to the 2015 Annual Report.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 IX. 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 June 2016
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|1,191,900,720.16|1,087,319,158.77|
|Settlement reserves|||
|Intra-Company lendings|||
|Financial assets measured by fair|||
|value with the changes be included in|3,175,807.27|322,223.28|
|the current gains and losses|||
|Derivative financial assets|||
|Notes receivable|1,270,576,488.25|539,442,903.31|
|Accounts receivable|5,933,487.57|4,948,074.84|
|Accounts paid in advance|55,891,773.32|80,373,083.59|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|22,597,880.76|8,617,955.68|
|Financial assets purchased under|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|agreements to resell|||
|Inventories|1,679,096,152.26|1,396,712,050.87|
|Assets divided available for sale|||
|Non-current assets due within 1 year|||
|Other current assets|870,481,108.21|1,500,970,860.37|
|Total current assets|5,099,653,417.80|4,618,706,310.71|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||
|Available-for-sale financial assets|318,133,207.80|313,881,190.47|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|||
|Investing property|9,425,316.99|9,715,451.89|
|Fixed assets|1,941,766,799.81|1,691,028,804.32|
|Construction in progress|23,322,200.71|62,562,971.78|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|708,186,627.83|298,372,239.96|
|R&D expense|||
|Goodwill|473,325,507.30|0.00|
|Long-term deferred expenses|108,433,949.42|127,815,668.37|
|Deferred income tax assets|80,322,307.81|61,065,003.63|
|Other non-current assets|||
|Total of non-current assets|3,662,915,917.67|2,564,441,330.42|
|Total assets|8,762,569,335.47|7,183,147,641.13|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||
|Intra-Company borrowings|||
|Financial liabilities measured by fair|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|value with the changes be included in|||
|the current gains and losses|||
|Derivative financial liabilities|||
|Notes payable|118,240,262.03|93,768,583.00|
|Accounts payable|409,626,614.83|378,187,452.07|
|Accounts received in advance|1,059,316,464.50|608,565,152.50|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Employee’s compensation payable|201,789,976.70|253,901,700.72|
|Tax payable|293,627,729.24|358,087,353.80|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|772,094,221.14|452,193,188.94|
|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|213,429,867.63|138,135,604.82|
|Total current liabilities|3,068,125,136.07|2,282,839,035.85|
|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|43,849,216.27|46,123,314.33|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Deferred income tax liabilities|119,413,770.33|20,463,660.87|
|Other non-current liabilities|||
|Total non-current liabilities|163,262,986.60|66,586,975.20|
|Total liabilities|3,231,388,122.67|2,349,426,011.05|
|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|36,361,977.17|54,481,886.51|
|Specific reserves|||
|Surplus reserves|256,902,260.27|256,902,260.27|
|Provisions for general risks|||
|Retained profits|3,104,494,452.73|2,723,798,990.11|
|Total equity attributable to owners of|||
||5,196,297,183.36|4,833,721,630.08|
|the Company|||
|Minority interests|334,884,029.44||
|Total owners’ equity|5,531,181,212.80|4,833,721,630.08|
|Total liabilities and owners’ equity|8,762,569,335.47|7,183,147,641.13|

 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|442,996,437.07|548,650,832.84|
|Financial assets measured by fair|||
|value with the changes be included in|2,961,045.95|322,223.28|
|the current gains and losses|||
|Derivative financial assets|||
|Notes receivable|1,009,485,003.27|288,101,188.68|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Accounts receivable|4,938,665.24|4,350,437.24|
|Accounts paid in advance|22,226,017.80|5,876,678.41|
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|106,741,698.35|107,625,019.85|
|Inventories|1,430,747,070.41|1,374,311,894.88|
|Assets divided available for sale|||
|Non-current assets due within 1 year|||
|Other current assets|870,115,822.70|1,500,000,000.00|
|Total current assets|3,890,211,760.79|3,829,238,275.18|
|Non-current assets:|||
|Available-for-sale financial assets|288,518,407.80|313,881,190.47|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,170,089,408.32|354,089,408.32|
|Investing property|9,425,316.99|9,715,451.89|
|Fixed assets|1,450,231,235.81|1,471,584,047.66|
|Construction in progress|22,526,925.31|62,355,022.07|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|184,837,985.78|187,468,810.92|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|108,433,949.42|127,815,668.37|
|Deferred income tax assets|42,154,627.44|42,154,627.44|
|Other non-current assets|||
|Total of non-current assets|3,276,217,856.87|2,569,064,227.14|
|Total assets|7,166,429,617.66|6,398,302,502.32|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured by fair|||
|value with the changes be included in|||
|the current gains and losses|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Derivative financial liabilities|||
|Notes payable|3,028,583.00|828,583.00|
|Accounts payable|339,675,045.40|371,636,772.06|
|Accounts received in advance|1,374,171,319.83|659,484,624.07|
|Employee’s compensation payable|68,180,897.79|88,513,920.05|
|Tax payable|193,528,289.89|237,459,964.06|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|262,436,022.69|268,035,753.60|
|Liabilities divided available for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|63,638,484.78|61,660,494.13|
|Total current liabilities|2,304,658,643.38|1,687,620,110.97|
|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|43,849,216.27|46,123,314.33|
|Deferred income tax liabilities|16,081,969.69|20,463,660.87|
|Other non-current liabilities|||
|Total non-current liabilities|59,931,185.96|66,586,975.20|
|Total liabilities|2,364,589,829.34|1,754,207,086.17|
|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|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Less: Treasury stock|||
|Other comprehensive income|36,762,996.51|54,481,886.51|
|Specific reserves|||
|Surplus reserves|251,800,000.00|251,800,000.00|
|Retained profits|2,762,514,684.46|2,587,051,422.29|
|Total owners’ equity|4,801,839,788.32|4,644,095,416.15|
|Total liabilities and owners’ equity|7,166,429,617.66|6,398,302,502.32|

 3. Consolidated income statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2016|Jan.-Jun 2015|
|I. Total operating revenues|3,045,034,706.73|2,713,042,828.92|
|Including: Sales income|3,045,034,706.73|2,713,042,828.92|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Total operating cost|2,512,805,683.52|2,247,031,817.63|
|Including: Cost of sales|780,394,434.66|827,578,527.59|
|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|471,239,184.35|392,182,734.37|
|Selling and distribution expenses|1,013,923,133.24|794,226,823.89|
|Administrative expenses|257,077,455.72|237,926,770.64|
|Financial expenses|-9,764,161.14|-8,593,975.74|
|Asset impairment loss|-64,363.31|3,710,936.88|
|Add: Gain/(loss) from change in fair|||
||2,080,010.18|40,432.58|
|value (“-” means loss)|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Gain/(loss) from investment (“-”|||
||44,324,855.36|38,298,172.94|
|means loss)|||
|Including: share of profits in associates|||
|and joint ventures|||
|Foreign exchange gains (“-” means loss)|||
|III. Business profit (“-” means loss)|578,633,888.75|504,349,616.81|
|Add: non-operating income|8,139,697.17|9,984,586.51|
|Of which: gains from non-current|||
||5,477.22|82,953.29|
|asset disposal|||
|Less: non-operating expense|5,088,602.48|1,279,224.88|
|Of which: losses from non-current|||
||4,324,035.29|644,420.16|
|asset disposal|||
|IV. Total profit (“-” means loss)|581,684,983.44|513,054,978.44|
|Less: Income tax expense|144,981,768.68|132,550,174.27|
|V. Net profit (“-” means loss)|436,703,214.76|380,504,804.17|
|Attributable to owners of the|||
||431,055,462.62|380,504,804.17|
|Company|||
|Minority shareholders’ income|5,647,752.14|0.00|
|VI. After-tax net amount of other|||
||-18,119,909.34|55,421,817.33|
|comprehensive incomes|||
|After-tax net amount of other|||
|comprehensive incomes attributable to|-18,119,909.34|55,421,817.33|
|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|-18,119,909.34|55,421,817.33|
|losses|||
|1. Enjoyable shares in other|||
|comprehensive incomes in investees that|||
|will be reclassified into gains and losses|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|under the equity method|||
|2. Gains and losses on fair|||
|value changes of available-for-sale|-18,119,909.34|55,421,817.33|
|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|418,583,305.42|435,926,621.50|
|Attributable to owners of the|412,935,553.28||
|||435,926,621.50|
|Company|||
|Attributable to minority|5,647,752.14||
|||0.00|
|shareholders|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.86|0.76|
|(II) Diluted earnings per share|0.86|0.76|

 Legal representative: Liang Jinhui Person-in-charge of the accounting work: Ye Changqing
Chief of the accounting division: Zhu Jiafeng
4. Income statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2016|Jan.-Jun 2015|
|I. Total sales|1,738,703,915.32|1,526,161,277.67|
|Less: cost of sales|766,632,166.44|849,408,915.00|
|Business taxes and surcharges|438,712,029.21|370,306,018.23|
|Distribution expenses|106,464,016.98|49,930,659.26|
|Administrative expenses|185,132,665.41|162,304,060.52|
|Financial costs|-8,383,165.64|-8,083,219.69|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Impairment loss|-170,676.54|2,948,211.17|
|Add: gain/(loss) from change in|||
||2,038,778.28|40,432.58|
|fair value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||43,379,375.36|37,697,274.33|
|means loss)|||
|Of which: income form investment|||
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|295,735,033.10|137,084,340.09|
|Add: non-business income|8,735,915.53|7,222,891.82|
|Of which: gains from non-current|||
|asset disposal|||
|Less: non-business expense|4,318,076.25|74,531.37|
|Of which: losses from non-current|||
||4,318,076.25|70,087.08|
|asset disposal|||
|III. Total profit (“-” means loss)|300,152,872.38|144,232,700.54|
|Less: income tax expense|74,329,610.21|40,778,019.63|
|IV. Net profit (“-” means loss)|225,823,262.17|103,454,680.91|
|V. After-tax net amount of other|||
||-17,718,890.00|55,421,817.33|
|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|-17,718,890.00|55,421,817.33|
|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|-17,718,890.00|55,421,817.33|
|financial assets|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|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|||
|VI. Total comprehensive incomes|208,104,372.17|158,876,498.24|
|VII. Earnings per share|||
|(I) Basic earnings per share|0.450|0.210|
|(II) Diluted earnings per share|0.450|0.210|

 5. Consolidated cash flow statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2016|Jan.-Jun 2015|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||2,839,999,383.84|2,825,242,242.74|
|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|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Net increase of intra-Company|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received|368,270.62|0.00|
|Other cash received relating to|||
||274,445,609.43|175,019,524.21|
|operating activities|||
|Subtotal of cash inflows from operating|||
||3,114,813,263.89|3,000,261,766.95|
|activities|||
|Cash paid for goods and services|517,398,554.95|709,413,298.38|
|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|540,282,959.39|517,459,277.00|
|Various taxes paid|1,174,821,006.32|1,048,663,427.74|
|Other cash payment relating to|||
||556,198,130.24|388,508,106.00|
|operating activities|||
|Subtotal of cash outflows from|||
||2,788,700,650.90|2,664,044,109.12|
|operating activities|||
|Net cash flows from operating activities|326,112,612.99|336,217,657.83|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
||2,233,652,050.58|1,359,031,928.76|
|investments|||
|Cash received from return on|||
||44,324,855.36|38,298,172.94|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|500,379.86|107,750.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|0.00|500,000.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|investing activities|||
|Subtotal of cash inflows from investing|||
||2,278,477,285.80|1,397,937,851.70|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|75,351,512.67|109,798,840.51|
|assets|||
|Cash paid for investment|1,632,621,071.61|1,402,588,358.90|
|Net increase of pledged loans|||
|Net cash paid to acquire|||
||795,770,032.45|0.00|
|subsidiaries and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||2,503,742,616.73|1,512,387,199.41|
|investing activities|||
|Net cash flows from investing activities|-225,265,330.93|-114,449,347.71|
|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|||
||50,360,000.00|0.00|
|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|||
||50,360,000.00|0.00|
|financing activities|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Net cash flows from financing activities|-50,360,000.00|0.00|
|IV. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||50,487,282.06|221,768,310.12|
|equivalents|||
|Add: Opening balance of cash and|||
||1,040,373,733.07|682,360,442.79|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||1,090,861,015.13|904,128,752.91|
|equivalents|||

6. Cash flow statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2016|Jan.-Jun 2015|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,644,591,743.75|1,700,083,632.03|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||220,264,244.15|88,556,807.56|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,864,855,987.90|1,788,640,439.59|
|activities|||
|Cash paid for goods and services|433,945,983.66|551,870,710.00|
|Cash paid to and for employees|261,484,424.76|240,816,560.34|
|Various taxes paid|785,049,481.14|558,464,417.24|
|Other cash payment relating to|||
||230,121,472.77|66,678,887.51|
|operating activities|||
|Subtotal of cash outflows from|||
||1,710,601,362.33|1,417,830,575.09|
|operating activities|||
|Net cash flows from operating activities|154,254,625.57|370,809,864.50|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
||2,233,318,095.80|1,312,651,013.05|
|investments|||
|Cash received from return on|||
||43,379,375.36|37,697,274.33|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|409,000.00|0.00|
|long-term assets|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
||0.00|500,000.00|
|investing activities|||
|Subtotal of cash inflows from investing|||
||2,277,106,471.16|1,350,848,287.38|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|68,357,442.76|106,844,334.84|
|assets|||
|Cash paid for investment|2,418,298,049.74|1,360,032,857.38|
|Net cash paid to acquire|||
|subsidiaries and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||2,486,655,492.50|1,466,877,192.22|
|investing activities|||
|Net cash flows from investing activities|-209,549,021.34|-116,028,904.84|
|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|||
||50,360,000.00|0.00|
|and distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||50,360,000.00|0.00|
|financing activities|||
|Net cash flows from financing activities|-50,360,000.00|0.00|
|IV. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|V. Net increase in cash and cash|||
||-105,654,395.77|254,780,959.66|
|equivalents|||
|Add: Opening balance of cash and|||
||548,650,832.84|584,601,536.78|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||442,996,437.07|839,382,496.44|
|equivalents|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
7. Consolidated Statement of Changes inOwners’ Equity
January-June 2016
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2016|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity instruments||||||||||||
|Item||||||Less:|Other|||General||Minority|Total owners’|
||||Perpetual|||||Specific||||||
||Share capital|Preferred|||Capital reserve|treasury|comprehensive||Surplus reserve|risk|Retained profit|interests|equity|
||||capital|Other||||reserve||||||
|||shares||||stock|income|||reserve||||
||||securities|||||||||||
|I. Balance at the end||||||||||||||
||503,600,000.00||||1,294,938,493.19||54,481,886.51||256,902,260.27||2,723,798,990.11||4,833,721,630.08|
|of the previous year||||||||||||||
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|combination under||||||||||||||
|the same control||||||||||||||
|Other||||||||||||||
|II. Balance at the||||||||||||||
||503,600,000.00||||1,294,938,493.19||54,481,886.51||256,902,260.27||2,723,798,990.11||4,833,721,630.08|
|period-begin||||||||||||||
|III. Increase/||||||||||||||
|decrease in the|||||||-18,119,909.34||||380,695,462.62|334,884,029.44|697,459,582.72|
|period (“-” means||||||||||||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||
|-|-|-|-|-|
|decrease)|||||
|(I) Total amount|||||
|of the|||||
||-18,119,909.34|431,055,462.62|5,647,752.14|418,583,305.42|
|comprehensive|||||
|income|||||
|(II) Capital paid|||||
|in and reduced by|||329,236,277.30|329,236,277.30|
|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|||329,236,277.30|329,236,277.30|
|(III) Profit|||||
|||-50,360,000.00||-50,360,000.00|
|distribution|||||
|1. Appropriations to|||||
|surplus reserves|||||
|2. Appropriations to|||||
|general risk|||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|provisions|||
|3. Appropriations to|||
|owners (or|-50,360,000.00|-50,360,000.00|
|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|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|(VI) Other||||||||
|IV. Closing balance|503,600,000.00|1,294,938,493.19|36,361,977.17|256,902,260.27|3,104,494,452.73|334,884,029.44|5,531,181,212.80|

 January-June 2015
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2015|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity instruments||||||||||||
|Item||||||Less:|Other|||General||Minority|Total owners’|
||||Perpetual|||||Specific||||||
||Share capital|Preferred|||Capital reserve|treasury|comprehensive||Surplus reserve|risk|Retained profit|interests|equity|
||||capital|Other||||reserve||||||
|||shares||||stock|income|||reserve||||
||||securities|||||||||||
|I. Balance at the end of||||||||||||||
||503,600,000.00||||1,294,938,493.19||16,669,604.07||256,902,260.27||2,108,940,620.43||4,181,050,977.96|
|the previous year||||||||||||||
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of errors||||||||||||||
|in previous periods||||||||||||||
|Business combination||||||||||||||
|under the same control||||||||||||||
|Other||||||||||||||
|II. Balance at the||||||||||||||
||503,600,000.00||||1,294,938,493.19||16,669,604.07||256,902,260.27||2,108,940,620.43||4,181,050,977.96|
|period-begin||||||||||||||
|III. Increase/ decrease in||||||||||||||
|the period (“-” means|||||||37,812,282.44||||614,858,369.68||652,670,652.12|
|decrease)||||||||||||||
|(I) Total amount of|||||||37,812,282.44||||715,578,369.68||753,390,652.12|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|the 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|||
|(III) Profit|||
||-100,720,000.00|-100,720,000.00|
|distribution|||
|1. Appropriations to|||
|surplus reserves|||
|2. Appropriations to|||
|general risk provisions|||
|3. Appropriations to|||
|owners (or|-100,720,000.00|-100,720,000.00|
|shareholders)|||
|4. Other|||
|(IV) Internal|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|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|||||||
|IV. Closing balance|503,600,000.00|1,294,938,493.19|54,481,886.51|256,902,260.27|2,723,798,990.11|4,833,721,630.08|

 8. Statement of changes inowners’ equity of the Company
January-June 2016
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2016|||||||||
|Item||||||||||
||Share capital|Other equity instruments|Capital reserve|Less:|Other|Specific|Surplus reserve|Retained profit|Total owners’|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Perpetual|||treasury|comprehensive|reserve|||equity|
|||Preferred||||||||||
||||capital|Other||stock|income|||||
|||shares||||||||||
||||securities|||||||||
|I. Balance at the end of the||||||||||||
||503,600,000.00||||1,247,162,107.35||54,481,886.51||251,800,000.00|2,587,051,422.29|4,644,095,416.15|
|previous year||||||||||||
|Add: change of||||||||||||
|accounting policy||||||||||||
|Correction of errors in||||||||||||
|previous periods||||||||||||
|Other||||||||||||
|II. Balance at the||||||||||||
||503,600,000.00||||1,247,162,107.35||54,481,886.51||251,800,000.00|2,587,051,422.29|4,644,095,416.15|
|period-begin||||||||||||
|III. Increase/ decrease in||||||||||||
|the period (“-” means|||||||-17,718,890.00|||175,463,262.17|157,744,372.17|
|decrease)||||||||||||
|(I) Total amount of the||||||||||||
||||||||-17,718,890.00|||225,823,262.17|208,104,372.17|
|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||||||||||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|payments recognized in|||
|owners’ equity|||
|4. Others|||
|(III) Profit distribution|-50,360,000.00|-50,360,000.00|
|1. Appropriations to|||
|surplus reserves|||
|2. Appropriations to|||
||-50,360,000.00|-50,360,000.00|
|general risk provisions|||
|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|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|period|||||||
|2. Used in the period|||||||
|(VI) Other|503,600,000.00|1,247,162,107.35|36,762,996.51|251,800,000.00|2,762,514,684.46|4,801,839,788.32|

 January-June 2015
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Jan.-Jun. 2015|||||||||||
|||Other equity instruments||||||||||
|||||||Less:|Other|||||
|Item|||Perpetual|||||Specific|||Total owners’|
||Share capital|Preferred|||Capital reserve|treasury|comprehensive||Surplus reserve|Retained profit||
||||capital|Other||||reserve|||equity|
|||shares||||stock|income|||||
||||securities|||||||||
|I. Balance at the end of||||||||||||
||503,600,000.00||||1,247,162,107.35||16,669,604.07||251,800,000.00|1,990,080,289.98|4,009,312,001.40|
|the previous year||||||||||||
|Add: change of||||||||||||
|accounting policy||||||||||||
|Correction of errors in||||||||||||
|previous periods||||||||||||
|Other||||||||||||
|II. Balance at the||||||||||||
||503,600,000.00||||1,247,162,107.35||16,669,604.07||251,800,000.00|1,990,080,289.98|4,009,312,001.40|
|period-begin||||||||||||
|III. Increase/ decrease in||||||||||||
|the period (“-” means|||||||37,812,282.44|||596,971,132.31|634,783,414.75|
|decrease)||||||||||||
|(I) Total amount of the||||||||||||
||||||||37,812,282.44|||697,691,132.31|735,503,414.75|
|comprehensive income||||||||||||
|(II) Capital paid in and||||||||||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|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|||
|(III) Profit distribution|-100,720,000.00|-100,720,000.00|
|1. Appropriations to|||
|surplus reserves|||
|2. Appropriations to|||
||-100,720,000.00|-100,720,000.00|
|general risk provisions|||
|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|||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|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|503,600,000.00|1,247,162,107.35|54,481,886.51|251,800,000.00|2,587,051,422.29|4,644,095,416.15|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Anhui Gujing Distillery Company Limited
Notes to the 2016 semi-annual financial statement
I. Company history
Authorized by document WGZGZ (1996) No.053 of Anhui Administrative Bureau of State-owned Property, Anhui Gujing Distillery Company Limited (“the Company”) was established as a limited liability company with net assets of RMB377,167,700 and state-owned shares of 155,000,000 shares and considered Anhui Gujing Company as the only promoter. The registration place was Bozhou Anhui China. The Company was established on 5 March 1996 by document of WZM (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 RMB1.00 per share. Those A shares and B shares are listed in Shenzhen Stock exchange.
Headquarter of the Company is located in Gujing Bozhou Anhui. The Company and its subsidiaries (the Company) specialize in producing and selling white spirit.
Registered capitals of the Company were RMB235,000,000 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 RMB1 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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 July 2011, with a par value of RMB1 and the price of RMB75.00 per share, raising RMB1,260,000,000.00 in total, the net amount of raised funds stood at RMB1,227,499,450.27 after deducting RMB32,500,549.73 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.
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 April 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 RMB251,800,000 of capital reserves to share capital.
Pursuant to the decision of annual shareholders meeting in 2011, the Company that considered 251,800,000 shares as base number on 31 December 2011 transferred capital reserve into share capital at a rate of “10 shares for per 10 shares” accounting for 251,800,000 shares and implemented in the year of 2012. Upon the transference, the registered capitals increased to RMB503,600,000. By 30 June 2016, 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 26 August 2016 by the Board of Directors. II. 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 Business Enterprises”, “China Accounting Standards” 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 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.
2. Continuous operation
The financial statement was presented based on the continuous operation.
The accounting measurement of the Company based on the accrued basis. And the financial statement regarded the historical cost as the measurement basis. If there was impairment of the assets, should withdraw the corresponding impairment provision according to the relevant regulations.
III. 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 2016, operating results, cash flow from January to June in 2016 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 financial statement” (revised in 2014).
IV. 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 “business combinations” 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 “package deal” criterion (see Note IV. 5 (2)), to judge the multiple exchange transactions whether they are the “package deal”. If it belong to the “package deal” in reference to the preceding paragraphs of this section and the Notes described in IV. 13 “long-term investment” accounting treatment, if it does not belong to the “package deal” 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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.
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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 Equity Investment” or “No.22—Affirmation and Calculation of Financial Instrument”. More details please refer to Note IV, 13 “Long-term Equity Investment” or Note IV, 9 “Financial Instrument”.
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 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 equity investments” (see Note IV. 13. (2)④)) and “due to the disposal of certain equity investments or other reasons lost control of a subsidiary of the original” (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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 equity method”.
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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016② 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 “serious decline” refers to the accumulative decline range of the fair value over20%; while the “non-temporary decline” 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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.
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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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
||
|-|
|Proportion for accounts receivable (%)|
|1.00|
|5.00|
|10.00|
|50.00|
|100.00|

③Accounts 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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.
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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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—Asset Impairment”, 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.
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 “financial instrument”. 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 theCompany’s attributable share of the fair value of the investedentity’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 theCompany’s attributable share of the fair value of the investedentity’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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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 other
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016owners’ 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 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,
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 assets impairment”.
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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 annual depreciation rate of each fixed assets are as below:
||||
|-|-|-|
|Method|Useful life (Y)|Expected netsalvage value(%)|
|Average method ofuseful life|8-35|3-5|
|Average method ofuseful life|8-10|3-5|
|Average method ofuseful life|4|3|
|Average method ofuseful life|3|3|

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 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 assets impairment”.
(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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 assets impairment”.
17. Borrowing costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 “intangible asset” 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.
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:
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016① 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
Impairment and provisions of intangible assets are disclosed on Note IV. 20 “Long-term assets impairment”.
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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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, labor 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 labor relationship with any employee prior to the expiration of the
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 relevant labor 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 labor 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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
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,
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 Government Information”, 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).
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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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.
(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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 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 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.
V. Taxation
1. Main taxes and tax rate
Category of taxes Particulars about specific tax rate
Income tax was in accordance with17%,6% 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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Category of taxes Particulars about specific tax rate
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.
VI. 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 1 January 2016, the closing period was 30 June 2016, this Period referred to 1 January-30 June 2016, and last period referred to 1 January-30 June 2015.
1. Monetary funds
||
|-|
|Closing balance|
|332,509.88|
|1,090,153,358.62|
|101,414,851.66|
|1,191,900,720.16|
|0.00|

 2. Financial assets measured by fair value and the changes be included in the current gains and losses
||
|-|
|Closing balance|
|3,175,807.27|
|3,175,807.27|
|3,175,807.27|

 3. Notes receivable
(1) Notes receivable listed by category
||
|-|
|Closing balance|
|1,270,576,488.25|
|1,270,576,488.25|

(2) Notes receivable pledged at the period-end
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Item Amount
Bank acceptance bill 21,651,974.00 Total 21,651,974.00 (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 theperiod-end|
|336,309,544.27|
|336,309,544.27|

4. Accounts receivable
(1) Accounts receivable classified by category
Closing balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|
|7,383,208.08|100|1,449,720.51|19.64|
|7,383,208.08|100|1,449,720.51|19.64|

 (Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Opening balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|
|6,226,590.29|100|1,278,515.45|20.53|
|6,226,590.29|100|1,278,515.45|20.53|

 In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
Closing balance
Aging
|||
|-|-|
|Account receivable|Bad debt provision|
|4,252,951.92|42,529.52|
|966,943.53|48,347.18|
|5,219,895.45|90,876.70|
|396,940.74|39,694.07|
|894,444.30|447,222.15|
|871,927.59|871,927.59|
|7,383,208.08|1,449,720.51|

 (2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawn bad debt provision of Reporting Period was of RMB41, 139.49.
(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 5 of the closing balance of the accounts receivable collected according to the arrears
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 party
The total amount of top five of account receivable of closing balance collected by arrears party was RMB2, 831,776.71,38.35% of total closing balance of account receivable, the relevant closing balance of bad debt provision withdrawn was RMB731, 764.36.
5. Prepayment
(1) List by aging analysis:
||||
|-|-|-|
|Closing balance|||
|Amount|Proportion (%)|Amount|
|52,929,107.11|94.70|80,083,715.48|
|2,236,109.42|4.00|285,694.11|
|283,297.06|0.51|0.00|
|443,259.73|0.79|3,674.00|
|55,891,773.32|100.00|80,373,083.59|

 (2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
The total amount of top five of account receivable of closing balance collected by arrears party was RMB20, 937,075.34,37.46% of total closing balance of account receivable.
6. Other accounts receivable
(1) Other account receivable classified by category
Closing balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|
|41,342,938.53|63.62|41,342,938.53|100.00|
|23,641,262.26|36.38|1,043,381.50|4.41|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Closing balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|
|64,984,200.79|100|42,386,320.03|65.23|

 (Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Withdrawalproportion (%)|
|41,342,938.53|81.90|41,342,938.53|100.00|
|9,134,457.26|18.10|516,501.58|5.65|
|50,477,395.79|100.00|41,859,440.11|82.93|

① Other receivable with single significant amount and withdrawal bad debt provision separately at end ofperiod：
Closing balance
||||
|-|-|-|
|Other accountsreceivable|Bad debtprovision|Withdrawalproportion (%)|
|11,840,500.00|11,840,500.00|100.00|
|29,502,438.53|29,502,438.53|100.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Closing balance
||||
|-|-|-|
|Other accountsreceivable|Bad debtprovision|Withdrawalproportion (%)|
|41,342,938.53|41,342,938.53|100.00|

② In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
Closing balance
Aging
|||
|-|-|
|Other accounts receivable|Bad debt provision|
|15,040,998.54|150,409.98|
|7,164,888.59|358,244.43|
|22,205,887.13|508,654.41|
|942,171.58|94,217.16|
|105,387.24|52,693.62|
|387,816.31|387,816.31|
|23,641,262.26|1,043,381.50|

 (2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawn bad debt provision of Reporting Period was of RMB35,542.21.
(3) Particulars of the actual verification of other accounts receivable during the Reporting Period
There was no actual verification of other accounts receivable during the Reporting Period (4) Other account receivable classified by account nature
||
|-|
|Closing book balance|
|41,342,938.53|
|1,407,050.01|
|3,915,005.70|
|6,721,027.98|
|11,598,178.57|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Total 64,984,200.79 50,477,395.79 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
|||||
|-|-|-|-|
|Nature|Closing balance|Aging|Proportion (%)|
|Securities investment|29,502,438.53|Over 3 years|45.40|
|Securities investment|11,840,500.00|Over 3 years|18.22|
|Intercourse funds|3,410,772.54|Within 1 year|5.25|
|Prepayment of oil fee|1,550,000.00|Within 6months|2.39|
|Prepayment of rental fee|689,658.09|Within 6months|1.06|
||46,993,369.16||72.32|

 7. Inventory
(1) Category of inventory
Closing balance
Item
|||
|-|-|
|Book balance|Falling price reserves|
|124,998,125.88|6,572,307.41|
|1,329,501,557.99||
|238,833,956.89|7,665,181.09|
|1,693,333,640.76|14,237,488.50|

 (Continued)
Opening balance
Item
|||
|-|-|
|Book balance|Falling price reserves|
|102,293,838.52|6,976,129.27|
|1,130,825,408.23||
|177,900,253.21|7,331,319.82|
|1,411,019,499.96|14,307,449.09|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (2) Impairment of inventories
||||||
|-|-|-|-|-|
|Opening balance|Increased amount||Decrease||
||Withdrawal|Others|Reverse orwrite-off|Others|
|6,976,129.27|||403,821.86||
|7,331,319.82|333,861.27||||
|14,307,449.09|333,861.27||403,821.86||

 (3) Withdrawal provision basis of the falling price of the inventory and the reasons of the reserve or write-off
|||
|-|-|
|Specific basis of withdrawal of fallingprice reserves of inventory|Reasons forreversal|
|The realizable net value was lower thanthe cost||
|The realizable net value was lower thanthe cost||

8. Other current assets
||
|-|
|Closing balance|
|870,000,000.00|
|481,108.21|
|870,481,108.21|

 9. Available-for-sale financial assets
(1) List of available-for-sale financial assets
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Depreciationreserves|Book value|Book balance|Depreciationreserves|
|218,133,207.80||21 8,133,207.80|213,881,190.47||
|218,133,207.80||21 8,133,207.80|213,881,190.47||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|100,000,000.00|10 0,000,000.00|100,000,000.00|
|318,133,207.80|31 8,133,207.80|313,881,190.47|

 (2) Available-for-sale financial assets measured by fair value at the period-end
|||
|-|-|
|Available-for-sale equityinstruments|Available-for-sale debtinstruments|
|169,650,571.57||
|218,133,207.80||
|48,482,636.23||

(3) Available-for-sale financial assets measured by cost at the period-end
||||||||
|-|-|-|-|-|-|-|
|Book balance|||||||
|Openingperiod|Increase|Decrease|Closingperiod|Openingperiod|Increase|Decrease|
|100,000,000.00|||100,000,000.00||||
|100,000,000.00|||100,000,000.00||||

10. Investment property
|||
|-|-|
|Houses and buildings|Land use right|
|23,148,813.75|2,644,592.00|
|23,148,813.75|2,644,592.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|Houses and buildings|Land use right|
|15,583,897.24|494,056.62|
|259,127.62|31,007.28|
|259,127.62|31,007.28|
|15,843,024.86|525,063.90|
|7,305,788.89|2,119,528.10|
|7,564,916.51|2,150,535.38|

 11. Fixed assets
(1) List of fixed assets
|||||
|-|-|-|-|
|Houses andbuildings|Machineryequipment|Transportationequipment|Office equipment andother|
|1,661,241,240.92|774,600,299.46|52,684,498.92|60,208,697.42|
|328,649,196.71|80,542,453.00|12,432,548.10|22,049,976.31|
|-|4,431,396.84|1,738,804.61|839,619.99|
|37,017,643.64|14,164,449.16|-|-|
|291,631,553.07|61,946,607.00|10,693,743.49|21,210,356.32|
|3,549,959.51|17,156,000.88|595,964.12|1,051,503.98|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 17,156,000. 22,353,428.4 (1) Disposal or Scrap 3,549,959.51 595,964.12 1,051,503.98
88 9
|||||
|-|-|-|-|
|1,986,340,478.12|837,986,751.58|64,521,082.90|81,207,169.75|
|475,454,089.21|288,129,635.62|42,255,683.05|45,592,394.27|
|101,414,232.74|66,057,311.43|9,219,649.77|11,633,499.19|
|35,835,471.83|42,029,709.21|3,019,481.90|4,248,922.77|
|65,578,760.91|24,027,602.22|6,200,167.87|7,384,576.42|
|1,729,716.06|13,554,619.83|520,868.30|1,021,420.47|
|1,729,716.06|13,554,619.83|520,868.30|1,021,420.47|
|575,138,605.89|340,632,327.22|50,954,464.52|56,204,472.99|
|4,133,377.10|2,140,753.15|-|-|
|-|-|-|-|
|-|-|-|-|
|-|915,318.33|-|-|
|-|915,318.33|-|-|
|4,133,377.10|1,225,434.82|-|-|
|1,407,068,495.13|496,128,989.54|13,566,618.38|25,002,696.76|
|1,181,653,774.61|484,329,910.69|10,428,815.87|14,616,303.15|

 (2) List of temporarily idle fixed assets
|||||
|-|-|-|-|
|Original bookvalue|Accumulativedepreciation|Impairmentprovision|Book value|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||
|-|-|-|-|
|15,719,043.63|11,411,262.48|4,133,377.10|174,404.05|
|7,964,491.74|6,734,804.38|1,225,434.82|4,252.54|
|23,683,535.37|18,146,066.86|5,358,811.92|178,656.59|

(3) Details of fixed assets failed to accomplish certification of property
||
|-|
|Book value|
|64,365,869.23|
|953,080.95|
|5,743,206.88|
|10,745,217.28|
|10,745,217.28|
|10,745,217.28|
|10,257,673.20|
|10,269,579.40|
|20,157,491.87|
|20,277,148.61|
|22,945,900.39|
|22,911,005.77|
|313,552.89|
|29,142,324.18|
|955,465.75|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Book value|
|9,903,006.73|
|19,072,091.82|
|20,902,528.07|
|45,003,899.65|
|31,980,337.29|
|38,423,590.21|
|21,183,794.22|
|23,985,549.72|
|23,447,638.47|
|26,066,443.33|
|4,198,827.00|
|9,665,199.99|
|33,094,219.98|
|20,761,372.44|
|21,127,025.93|
|38,651,948.11|
|133,803,465.20|
|761,798,889.12|

12. Construction in progress
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (1) List of construction in progress
||||||
|-|-|-|-|-|
|Closing balance|||||
|Bookbalance|Depreciationreserves|Bookvalue|Bookbalance|Depreciationreserves|
|32,051.44||3 2,051.44|32,051.44||
|3,755,555.56||3,755,555.56|3,305,555.56||
|1,204,613.21||1,204,613.21|1,186,500.00||
|769,230.77||769,230.77|769,230.77||
|7,852,045.88||7,852,045.88|47,025,894.49||
|2,167,605.55||2,167,605.55|2,167,605.55||
||||3,657,367.52||
|965,000.00||965,000.00|965,000.00||
|2,299,961.53||2,299,961.53|2,299,961.53||
|947,572.83||947,572.83|||
|2,061,538.54||2,061,538.54|||
|1,267,025.40||1,267,025.40|1,153,804.92||
|23,322,200.71||23,322,200.71|62,562,971.78||

 (2) Changes of significant construction in progress
||||||
|-|-|-|-|-|
|Estimated number|Openingbalance|IncreaseAmount|Amount thattransferred tofixed assets ofthe period|Otherdecreasedamount of theperiod|
|800,000,000.00|32,051.44||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Estimated number|Openingbalance|IncreaseAmount|Amount thattransferred tofixed assets ofthe period|Otherdecreasedamount of theperiod|
|8,350,000.00|3,305,555.56|450,000.00|||
|6,000,000.00|1,186,500.00|18,113.21|||
|8,000,000.00|769,230.77||||
|116,670,000.00|47,025,894.49|4,190,948.31|43,364,796.92||
|5,400,000.00|2,167,605.55||||
|2,600,000.00|965,000.00||||
|5,000,000.00|2,299,961.53||||
|3,810,000.00||947,572.83|||
|4,200,000.00||2,061,538.54|||
|5,500,000.00|3,657,367.52|914,341.88|4,571,709.40||
|3,050,000.00|1,153,804.92|3,358,806.96|3,245,586.48||
|968,580,000.00|62,562,971.78|11,941,321.73|51,182,092.80||

 (Continued)
||||||
|-|-|-|-|-|
|Proportionestimated of theprojectaccumulativeinput (%)|ProjectProgress (%)|Accumulativeamount ofcapitalizedinterests|Of which: theamount of thecapitalizedinterests of theperiod|Capitalizationrate of theinterests of theperiod (%)|
|92.62|100||||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Proportionestimated of theprojectaccumulativeinput (%)|ProjectProgress (%)|Accumulativeamount ofcapitalizedinterests|Of which: theamount of thecapitalizedinterests of theperiod|Capitalizationrate of theinterests of theperiod (%)|
|72.22|90||||
|19.78|50||||
|11.56|50||||
|47.37|100||||
|50.64|90||||
|43.48|90||||
|47.45|70||||
|9.87|50||||
|33.94|50||||
|95.45|100||||
|88.94|100||||
|-|-||||

13. Intangible assets
||||
|-|-|-|
|Land use right|Patent right|Software|
|351,249,420.80|38,150,000.00|4,869,402.68|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Land use right|Patent right|Software|
|277,029,881.76|176,833,542.63|999,312.90|
|277,029,881.76|176,833,542.63|999,312.90|
|628,279,302.56|214,983,542.63|5,868,715.58|
|54,759,386.45|38,150,000.00|2,987,197.07|
|36,560,145.79|7,513,992.63|974,211.00|
|4,232,848.95|0.00|537,406.94|
|32,327,296.84|7,513,992.63|436,804.06|
|91,319,532.24|45,663,992.63|3,961,408.07|
|536,959,770.32|169,319,550.00|1,907,307.51|
|296,490,034.35||1,882,205.61|

 14. Goodwill
||||
|-|-|-|
|Opening balance|Increased amount of the period|Decreased amount of the period|
||Enterprise mergerformation|Management|
|0.00|473,325,507.30|0.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|0.00|473,325,507.30|0.00|

 15. Long-term unamortized expenses
|||||
|-|-|-|-|
|Opening balance|Increased amount|Amortizationamount|Decrease|
|2,918,368.91||761,679.42||
|7,305,261.80||1,860,700.85||
|1,408,903.13||281,780.64||
|17,226,636.96||6,725,485.32||
|17,455,429.04|4,678,616.50|1,191,553.55||
|11,366,500.00||750,000.00||
|19,216,518.59|83,364.25|2,184,916.75||
|1,041,359.68||215,453.70||
|4,850,000.00||300,000.00||
|27,703,158.38||7,756,164.67|21,181.12|
|4,941,948.33||478,359.66||
|3,607,861.23|452,564.62|827,686.18||
|6,217,336.14|0|666,143.14||
|2,556,386.18|0|575,159.32||
|127,815,668.37|5,214,545.37|24,575,083.20|21,181.12|

 16. Deferred income tax assets/deferred income tax liabilities
(1) List of unrecognized deferred income tax assets
||||
|-|-|-|
|Closing balance|||
|Deductible temporaryDifferences|Deferred income taxassets|Deductible temporaryDifferences|
|43,836,040.54|10,959,010.13|43,137,779.39|
|14,237,488.50|3,559,372.12|14,307,449.09|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|5,330,814.46|1,332,703.61|6,246,132.79|
|43,849,216.27|10,962,304.07|46,123,314.33|
|213,429,867.63|53,357,466.91|134,446,030.45|
|605,803.87|151,450.97||
|321,289,231.27|80,322,307.81|244,260,706.05|

 (2) Lists of deferred income tax liabilities had not been off-set
||||
|-|-|-|
|Closing balance|||
|Deductible temporarydifferences|Deferred income taxliabilities|Deductible temporarydifferences|
|2,243,248.59|560,812.15|163,238.41|
|49,088,440.10|12,272,110.03|72,642,515.35|
|8,892,265.05|2,223,066.25|9,048,889.73|
|417,431,127.61|104,357,781.90|0.00|
|477,655,081.35|119,413,770.33|81,854,643.49|

 (3) List of unrecognized deferred income tax assets
||
|-|
|Closing balance|
|27,997.46|
|2,959,839.41|
|2,987,836.87|

 17. Notes payable
||
|-|
|Closing balance|
|115,211,679.03|
|3,028,583.00|
|118,240,262.03|

18. Accounts payable
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (1) List of accounts payable
||
|-|
|Closing balance|
|335,688,897.62|
|73,937,717.21|
|409,626,614.83|

 (2) Notes of the accounts payable aging over one year
||
|-|
|Closing balance|
|11,525,200.00|
|7,615,752.27|
|7,597,440.81|
|6,376,632.93|
|3,932,156.11|
|37,047,182.12|

19. Advance from customers
||
|-|
|Closing balance|
|1,059,316,464.50|
|1,059,316,464.50|

 20. Payroll payable
(1) List of Payroll payable
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|253,376,275.54|359,364,175.55|411,358,885.13|
|525,425.18|49,725,406.69|49,842,421.13|
|253,901,700.72|409,089,582.24|461,201,306.26|

 (2) List of Short-term salary
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|202,138,836.94|264,771,008.81|326,496,121.23|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|0|4,581,967.04|4,581,967.04|
|36,873.97|16,642,650.25|16,651,357.80|
|27,079.95|15,067,511.82|15,076,117.40|
|4,771.50|896,660.13|896,841.60|
|5,022.52|678,478.30|678,398.80|
|12,784,777.20|59,802,478.52|59,009,613.26|
|38,415,787.43|13,566,070.93|4,619,825.80|
|253,376,275.54|359,364,175.55|411,358,885.13|

 (3) List of drawing scheme
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|499,446.46|46,556,611.61|46,667,718.94|
|25,978.72|3,168,795.08|3,174,702.19|
|525,425.18|49,725,406.69|49,842,421.13|

 21. Taxes payable
||
|-|
|Closing balance|
|88,576,040.83|
|113,948,209.08|
|7,734.85|
|58,954,095.13|
|2,399,767.78|
|10,477,670.38|
|448,199.51|
|9,934,691.07|
|8,881,320.61|
|293,627,729.24|

22. Other accounts payable
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Closing balance|
|641,091,653.77|
|1,536,367.73|
|66,088,722.97|
|12,985,839.72|
|50,391,636.95|
|772,094,221.14|

 23. Other non-current liabilities
||
|-|
|Closing balance|
|213,429,867.63|
|213,429,867.63|

 24. Deferred revenue
|||||
|-|-|-|-|
|Opening balance|Increase|Decrease|Closing balance|
|46,123,314.33||2,274,098.06|43,849,216.27|
|46,123,314.33||2,274,098.06|43,849,216.27|

Of which, items involved in government subsidies:
||||||
|-|-|-|-|-|
|Opening balance|Amount ofnewlysubsidy|Amountrecorded intonon-operatingincome in reportperiod|Otherchanges|Closing balance|
|442,708.37|0.00|31,249.98|0.00|411,458.39|
|1,653,750.00|0.00|110,250.00|0.00|1,543,500.00|
|244,791.66|0.00|15,625.02|0.00|229,166.64|
|1,965,853.62|0.00|146,341.44|0.00|1,819,512.18|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Opening balance|Amount ofnewlysubsidy|Amountrecorded intonon-operatingincome in reportperiod|Otherchanges|Closing balance|
|4,870,300.00|0.00|365,272.50|0.00|4,505,027.50|
|471,750.00|0.00|76,500.00|0.00|395,250.00|
|240,000.00|0.00|30,000.00|0.00|210,000.00|
|1,529,204.04|0.00|265,811.84|0.00|1,263,392.20|
|2,018,595.46|0.00|267,110.76|0.00|1,751,484.70|
|3,333.45|0.00|3,333.45|0.00|0.00|
|142,500.00|0.00|15,000.00|0.00|127,500.00|
|6,311,250.00|0.00|556,875.00|0.00|5,754,375.00|
|24,763,652.65|0.00|275,103.09|0.00|24,488,549.56|
|825,000.08|0.00|68,749.98|0.00|756,250.10|
|640,625.00|0.00|46,875.00|0.00|593,750.00|
|46,123,314.33|0.00|2,274,098.06|0.00|43,849,216.27|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 25. Share capital
|||||||
|-|-|-|-|-|-|
|Opening balance|Increase/decrease in Reporting Period (+,-)|||||
||Newlyissueshare|Bonusshares|Capitalizationofpublicreserves|Others|Subtotal|
|503,600,000.00||||||

 26. Capital surplus
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|1,262,552,456.05|||
|32,386,037.14|||
|1,294,938,493.19|||

 27. Other comprehensive income
|||||||
|-|-|-|-|-|-|
|Opening periodBalance|Reporting Period|||||
||ReportingPeriodAmount beforeincome tax|Less: recordedin othercomprehensiveincome inprior periodand transferredto profit orloss in currentperiod|Less: Incometax expense|Attributable toowners of theCompany aftertax|Attributableto minorityshareholdersafter tax|
|54,481,886.51|-23,679,607.12|360,204.00|-5,919,901.78|-18,119,909.34|0.00|
|54,481,886.51|-23,679,607.12|360,204.00|-5,919,901.78|-18,119,909.34|0.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|Opening periodBalance|Reporting Period|||||
||ReportingPeriodAmount beforeincome tax|Less: recordedin othercomprehensiveincome inprior periodand transferredto profit orloss in currentperiod|Less: Incometax expense|Attributable toowners of theCompany aftertax|Attributableto minorityshareholdersafter tax|
|54,481,886.51|-23,679,607.12|360,204.00|-5,919,901.78|-18,119,909.34|0.00|

 28. Surplus reserves
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|256,902,260.27|0.00|0.00|
|256,902,260.27|0.00|0.00|

 Notes: Based on the regulations of the Corporation Law and Article of Association, the Company should withdraw10% of the statutory surplus reserves according to the net profits. If the accumulated amount of the statutory surplus reserves exceeded the50% of the registered capital, the Company could no more withdraw.
The Company, after withdraw statutory surplus reserves, can withdraw discretional surplus reserves, in line with the approval, the discretional surplus reserves can be used for making up losses in previous year or increase share capital
29. Retained profits
||
|-|
|Reporting Period|
|2,723,798,990.11|
|2,723,798,990.11|
|431,055,462.62|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Reporting Period|
|50,360,000.00|
|3,104,494,452.73|

 30. Revenue and Cost of Sales
||||
|-|-|-|
|Reporting Period|||
|Sales revenue|Cost of sales|Sales revenue|
|3,024,521,955.55|764,241,551.89|2,697,122,601.21|
|20,512,751.18|16,152,882.77|15,920,227.71|
|3,045,034,706.73|780,394,434.66|2,713,042,828.92|

 31. Business tax and surcharges
||
|-|
|Reporting Period|
|387,368,333.18|
|1,287,301.81|
|81,797,388.99|
|786,160.37|
|471,239,184.35|

 Notes: the measurement standards of business tax and surcharges see Notes V. Tax
32. Sales expenses
||
|-|
|Reporting Period|
|91,988,233.13|
|50,616,867.44|
|232,167,675.77|
|14,302,719.73|
|382,200,662.52|
|81,770,179.30|
|126,056,794.13|
|34,820,001.22|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Reporting Period|
|1,013,923,133.24|

 33. Administrative expenses
||
|-|
|Reporting Period|
|138,598,708.62|
|5,051,588.92|
|16,180,538.79|
|7,396,042.34|
|25,666,709.05|
|4,495,152.80|
|7,028,047.40|
|22,093,807.33|
|923,463.49|
|4,305,991.70|
|25,337,405.28|
|257,077,455.72|

 34. Financial expenses
||
|-|
|Reporting Period|
|9,929,844.92|
|93,752.69|
|71,931.09|
|-9,764,161.14|

 35. Asset impairment loss
||
|-|
|Reporting Period|
|5,597.28|
|-69,960.59|
|-64,363.31|

36. Gains and losses from changes in fair value
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Reporting Period|
|2,080,010.18|
|2,080,010.18|

 37. Investment income
||
|-|
|Reporting Period|
|4,982,722.91|
|39,030,480.05|
|311,652.40|
|44,324,855.36|

 38. Non-operating gains
|||
|-|-|
|ReportingPeriod|Same period oflast year|
|5,477.22|82,953.29|
|5,477.22|82,953.29|
|3,899,636.68|3,021,627.75|
||3 ,129,276.74|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|ReportingPeriod|Same period oflast year|
|335,651.90||
|2,712,008.98|3,078,184.05|
|1,186,922.39|672,544.68|
|8,139,697.17|9,984,586.51|

 Of which, government subsidies recorded into current profits and losses
|||
|-|-|
|ReportingPeriod|Same periodof last year|
|337,268.00|723,800.00|
|600,000.00||
|100,000.00||
|220,000.00||
|368,270.62||
|2,274,098.06|2,297,827.75|
|3,899,636.68|3,021,627.75|

39. Non-operating expenses
|||
|-|-|
|Reporting Period|Same period of last year|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|Reporting Period|Same period of last year|
|4,324,035.29|644,420.16|
|4,324,035.29|644,420.16|
|764,567.19|634,804.72|
|5,088,602.48|1,279,224.88|

 40. Income tax expense
(1) Lists of income tax expense
||
|-|
|Reporting Period|
|148,337,746.92|
|-3,355,978.24|
|144,981,768.68|

 41. Other comprehensive income
See note VI. 26
42. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities:
||
|-|
|Reporting Period|
|205,517,087.14|
|1,625,538.62|
|9,929,844.92|
|10,427,713.05|
|46,945,425.70|
|274,445,609.43|

 (2) Other cash paid relevant to operating activities:
||
|-|
|Reporting Period|
|438,621,689.10|
|101,039,705.03|
|16,536,736.11|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Reporting Period|
|556,198,130.24|

 (3) Other cash received relevant to investment activities
||
|-|
|Reporting Period|
|0.00|
|0.00|

 43. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
||
|-|
|Reporting Period|
|436,703,214.76|
|-64,363.31|
|85,133,585.71|
|290,134.90|
|4,770,255.89|
|24,575,083.20|
|4,318,558.07|
|-2,080,010.18|
|93,752.69|
|-44,324,855.36|
|-19,257,304.18|
|-5,407,672.44|
|-282,384,101.39|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Reporting Period|
|-722,315,697.46|
|843,787,934.03|
|2,274,098.06|
|326,112,612.99|
|1,090,861,015.13|
|1,040,373,733.07|
|50,487,282.06|

 (2) Cash and cash equivalents
||
|-|
|Closing balance|
|1,090,861,015.13|
|332,509.88|
|1,090,153,358.62|
|375,146.63|
|1,090,861,015.13|

43. The assets with the ownership or use right restricted
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Closing book value|
|101,039,705.03|
|21,651,974.00|
|122,691,679.03|

VII. Changes of merge scope
1. Business combination not under the same control
(1) Business combination under the same control during the Reporting Period
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Time toobtainequity|Time to obtaincost|Equityproportionobtained|Way ofequityobtained|Purchase date|Recognitionjudgment|Income ofacquiree frompurchase dateto period-end|
|1 June2016|816,000,000.00|51%|Purchase|1 June2016|Equityacquisitionagreement|74,200,918.34|

(2) Combination cost and goodwill
Unit: RMB Yuan Combination cost Amount
--Cash 816,000,000.00 -Fair value of non-cash assets
--Fair value of debt issued or undertake
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity held before purchase date on purchase
date
--Other
Total 816,000,000.00
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Less: share of fair value of net identifiable assets obtained 342,674,492.70 Amount of goodwill/ combination cost less than share of fair
473,325,507.30 value of net identifiable assets obtained
(3) The identifiable assets and liabilities of acquiree at purchase date
Unit: RMB Yuan
||
|-|
|Fair value on purchase date|
|20,229,967.55|
|35,078,054.14|
|4,592,658.47|
|11,047,048.55|
|242,253,429.44|
|184,929.69|
|281,921,292.87|
|153,478.18|
|414,584,643.76|
|14,442,466.21|
|5,000,000.00|
|53,189,550.56|
|51,292,952.12|
|1,552,166.23|
|17,902,164.20|
|112,406,799.76|
|6,875,784.08|
|104,357,781.90|
|671,910,770.01|
|329,236,277.30|
|342,674,492.70|

 2. Other reasons for the changes in combination scope:
||||||
|-|-|-|-|-|
|Mainoperating|Registrationplace|Nature ofbusiness|Holding percentage (%)||
||||Directly|Indirectly|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||
|-|-|-|-|
|place||||
|Bozhou,Anhui|Bozhou,Anhui|Businesstrading|100.00|

VIII. Equity in other entities
1. Equity in subsidiary
||||||
|-|-|-|-|-|
|Main operatingplace|Registrationplace|Nature ofbusiness|Holding percentage (%)||
||||Directly|Indirectly|
|Bozhou, Anhui|Bozhou,Anhui|Businesstrading|100.00||
|Bozhou, Anhui|Bozhou,Anhui|Transportation|99.00|1.00|
|Bozhou, Anhui|Bozhou,Anhui|Production|99.00|1.00|
|Bozhou, Anhui|Bozhou,Anhui|Waste cycled||100.00|
|Hefei Anhui|Hefei Anhui|Ads marketing||100.00|
|Bozhou, Anhui|Bozhou,Anhui|Production|100.00||
|Bozhou, Anhui|Bozhou,Anhui|Technologyresearch|100.00||
|Bozhou, Anhui|Bozhou,Anhui|Production|100.00||
|Bozhou, Anhui|Bozhou,Anhui|SewageTreatment|100.00||
|Bozhou, Anhui|Bozhou,Anhui|Hoteloperating|100.00||
|Shanghai|Shanghai|Hotelmanagement|100.00||
|Wuhan, Hubei|Wuhan, Hubei|Production|51.00||
|Bozhou, Anhui|Bozhou,Anhui|Businesstrading||100.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 IX. The risk related 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) Risk management objectives and policies
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 incurred due to loss of changes in exchange rate. 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 change 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 financial assets measured at fair value on balance sheetdate. 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 June 2016, the largest credit risk exposure what may lead to the financial losses was the other party of the contract failed to fulfill the obligations and causes loss of theCompany’s financial assets and financial guarantee, which including:book value of financial assets recognized in consolidated balance sheet; as for the financial instruments measured at fair value, the book value
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 reflect its risk exposure, but not the largest one, the largest risk exposure will change when the future fair value changed.
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 Company gives priority to first payment shipment, only small amount of credit transactions and examines and verifies the credit of the client who trading with by credit way.
The Company's working capital was in bank with higher credit rating, so credit risk of working capital was low.
3. Liquidity Risk
When managing liquidity risk, the Company maintained themanagement’s believe that supervising the sufficient cash and cash equivalents to meet the operating demand of the Company and reduce the influence of the fluctuation of cash flow.
X. 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|
|3,175,807.27|||
|3,175,807.27|||
|3,175,807.27|||
|218,133,207.80|||
|218,133,207.80|||
|221,309,015.07|||

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.
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 XI. Related party and related Transaction
1. Information of parent company
|||||
|-|-|-|-|
|Registrationplace|Nature of business|Registeredcapital|Proportion ofshare held byparent companyagainst theCompany (%)|
|Anhui|Beverage, Constructionmaterials, and plasticproductionsmanufacture|1,000,000,000.00|53.89|

Notes: The finial control of the Company wasPeople’s Government of Bozhou, Anhui
2. Information of subsidiary of the Company
Details of information of subsidiary of the Company see note 1. Equity in subsidiary VIII
3. Information on other related parties of the Company
Name Relationship
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.,
Affiliated enterprise of controlling shareholder and actual controller Ltd
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 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 Development 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 Finance Investment Group Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Name Relationship
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 Bozhou Hengxin Pawn Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Aoxin Real Estate Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Lixin E-Commerce Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Xinxin Property Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Youxin Financing Guarantee Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Bozhou Gujing Real Estates Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Shanghai Beihai Restaurant Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Shanghai Ruiyao Hotel Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller Anhui Xinyuan Government Landscape Engineering
Affiliated enterprise of controlling shareholder and actual controller Co., Ltd.
4. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)①Information on acquisition of goods and reception of labor service
|||
|-|-|
|Content|Reporting Period|
|Purchase of raw material|103,717.97|
|Accepting food andaccommodation services|1,003,377.40|
|Purchase of goods|89,654.36|
|Accepting food andaccommodation services|14,088.46|
|Accepting food andaccommodation services|2,051,307.00|
|Residential Services|199,119.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|Content|Reporting Period|
|Accepting food andaccommodation services|188,450.00|
|Accepting food andaccommodation services|9,460.00|
||3,659,174.19|

②Information of sales of goods and provision of labor service
|||
|-|-|
|Content|Reporting Period|
|Sales of whitespirit|4,941.54|
|Sales of smallsized materials|19,355.93|
|ProvidingHotels andRestaurants|195,376.99|
|Sales of whitespirit|16,538.46|
|Sales of whitespirit|41,025.64|
|Sales of whitespirit|1,744,615.38|
|Sales of whitespirit|0.00|
|Sales of whitespirit|164,692.31|
|Sales of whitespirit|9,123.08|
|Sales of whitespirit|55,384.64|
|Sales of whitespirit|8,981.53|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|Content|Reporting Period|
|Providingcatering service|0.00|
|Sales of whitespirit|0.00|
|Selling materials|0.00|
|Sales of whitespirit|82,896.41|
|Providingcatering service|800.00|
|Sales of whitespirit|85,867.71|
|Sales of whitespirit|9,692.31|
|Selling materials|0.00|
|Sales of whitespirit|3,658.47|
|Sales of whitespirit|4,406.15|
|Sales of whitespirit|24,747.70|
|Sales of whitespirit|18,563.07|
|Sales of whitespirit|12,155.90|
|Sales of whitespirit|3,670.78|
|Sales of whitespirit|1,230.77|
|Sales of whitespirit|15,273.85|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|Content|Reporting Period|
|Sales of whitespirit|5,076.92|
|Sales of whitespirit|29,307.69|
|Sales of whitespirit|8,153.85|
|Sales of whitespirit|4,461.54|
|Catering|17,110.00|
|S elling materials|47,934.55|
|Sales of whitespirit|51,583.59|
||2,686,626.76|

 (2) Information of related lease
The Company was lessee:
|||
|-|-|
|Category of leased assets|The lease incomeconfirmed in this year|
|Houses and buildings|900,000.00|
|Houses and buildings|250,000.00|

 The Company was lessor
|||
|-|-|
|Category of leased assets|The lease incomeconfirmed in this year|
|Houses and buildings|169,597.89|

 5. Receivables and payables of related parties
(1) Receivables
||
|-|
|Closing balance|
|0.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Total 0.00 6,186.47 (2) Payables
||
|-|
|Closing balance|
|204,400.01|
|16,100.00|
|10,000.00|
|50,543.00|
|0.00|
|9,540.00|
|5,220.00|
|12,110.90|
|307,913.91|
|0.00|
|0.00|
|15,500.00|
|0.00|
|0.00|
|0.00|
|0.00|
|55,740.56|
|0.00|
|71,240.56|

 XII. Commitments and contingency
1. Significant commitments
(2) Operating lease commitments
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 As of the end of balance sheet date, the irrevocable operating lease commitments that the Company signed were as followed:
||
|-|
|Closing balance|
|2,300,000.00|
|2,300,000.00|
|2,300,000.00|
|25,108,333.33|
|32,008,333.33|

 2. Contingency
As of 30 June 2016, there were no significant contingency to be disclosed.
XIII. Events after balance sheet date
As of 30 June 2016, there was no other significant event after balance sheet date.
XIV. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Closing balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|
|5,533,492.33|100.00|594,827.09|81.61|
|5,533,492.33|100.00|594,827.09|81.61|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 (Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion (%)|Amount|Proportion(%)|
|4,940,776.33|100.00|590,339.09|11.95|
|4,940,776.33|100.00|590,339.09|11.95|

① In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
Closing balance
Aging
|||
|-|-|
|Account receivable|Bad debt provision|
|141,121.87|7,056.09|
|141,121.87|7,056.09|
|0.00|0.00|
|0.00|0.00|
|587,771.00|587,771.00|
|728,892.87|594,827.09|

② In the groups, accounts receivable adopting other methods to withdraw bad debt provision: Closing balance
Name of the group
|||
|-|-|
|Account receivable|Bad debt provision|
|4,804,599.46||

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Closing balance
Name of the group
|||
|-|-|
|Account receivable|Bad debt provision|
|4,804,599.46||

(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawn bad debt provision of Reporting Period was of RMB4,488.00.
(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 amount of top five of account receivable of closing balance collected by arrears party was RMB5, 533,492.33,100.00% of total closing balance of account receivable, the relevant closing balance of bad debt provision withdrawn was RMB594, 827.09.
2. Other accounts receivable
(1) Other account receivable classified by category
Closing balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|
|41,342,938.53|27.88|41,342,938.53|100.00|
|106,969,190.33|72.12|227,491.98|0.21|
|148,312,128.86|100.00|41,570,430.51|28.03|

 (Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Opening balance
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Proportion(%)|Amount|Proportion(%)|
|41,342,938.53|27.69|41,342,938.53|100.00|
|107,957,715.78|72.31|332,695.93|0.31|
|149,300,654.31|100.00|41,675,634.46|27.91|

① Other receivable with single significant amount and withdrawal bad debt provision separately at end ofperiod：
Closing balance
||||
|-|-|-|
|Other accountsreceivable|Bad debtprovision|Withdrawalproportion (%)|
|11,840,500.00|11,840,500.00|100.00|
|29,502,438.53|29,502,438.53|100.00|
|41,342,938.53|41,342,938.53|—|

② In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
Closing balance
Aging
|||
|-|-|
|Other accounts receivable|Bad debt provision|
|4,151,462.14|41,514.61|
|96,869.47|4,843.47|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Closing balance
Aging
|||
|-|-|
|Other accounts receivable|Bad debt provision|
|4,248,331.61|46,358.08|
|707,559.25|70,755.93|
|15,014.93|7,507.47|
|102,870.49|102,870.50|
|5,073,776.28|227,491.98|

③ In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
Closing balance
Name of the group
|||
|-|-|
|Other accounts receivable|Bad debt provision|
|101,895,414.05||
|101,895,414.05||

(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawn bad debt provision of Reporting Period was of RMB105,203.95.
(3) Particulars of the actual verification of other accounts receivable during the Reporting Period There was no actual verification of other accounts receivable during the Reporting Period (4) Other account receivable classified by account nature
||
|-|
|Closing book balance|
|101,895,414.05|
|41,342,938.53|
|753,658.09|
|55,798.00|
|2,744,956.39|
|1,519,363.80|
|148,312,128.86|

(5) Top 5 of the closing balance of the other accounts receivable collected according to the
arrears party
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||||
|-|-|-|-|
|Nature|Closing balance|Aging|Proportion (%)|
|Intercourse funds betweenentities within combinationscope|97,955,000.00|0.5years|66.05%|
|Securities investment|29,502,438.53|Over 3 years|19.89%|
|Securities investment|11,840,500.00|Over 3 years|7.98%|
|Rent, water, electricity &gas expense|3,940,414.05|0-6 months|2.66%|
|Securities to be refunded|1,550,000.00|0-6 months|1.05%|
|—|144,788,352.58|—|97.62%|

 3. Long-term equity investment
(1) Long-term equity investment
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Depreciation reserves|Book value|Book balance|Depreciationreserves|
|1,170,089,408.32|0.00|1,170,089,408.32|354,089,408.32|0.00|
|1,170,089,408.32|0.00|1,170,089,408.32|354,089,408.32|0.00|

 (2) Investment to the subsidiary
||||||
|-|-|-|-|-|
|Opening balance|Increase|Decrease|Closing balance|Withdrawnimpairmentprovision inthe ReportingPeriod|
|84,864,497.89|0.00|0.00|84,864,497.89|0.00|
|85,793,666.00|0.00|0.00|85,793,666.00|0.00|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Opening balance|Increase|Decrease|Closing balance|Withdrawnimpairmentprovision inthe ReportingPeriod|
|49,906,854.63|0.00|0.00|49,906,854.63|0.00|
|648,646.80|0.00|0.00|648,646.80|0.00|
|6,875,743.00|0.00|0.00|6,875,743.00|0.00|
|30,000,000.00|0.00|0.00|30,000,000.00|0.00|
|50,000,000.00|0.00|0.00|50,000,000.00|0.00|
|30,000,000.00|0.00|0.00|30,000,000.00|0.00|
|16,000,000.00|0.00|0.00|16,000,000.00|0.00|
|0.00|816,000,000.00|0.00|816,000,000.00|0.00|
|354,089,408.32|0.00|0.00|1,170,089,408.32|0.00|

 4. Revenue and Cost of Sales
||||
|-|-|-|
|Reporting Period|||
|Sales revenue|Cost of sales|Sales revenue|
|1,713,016,802.41|749,998,664.73|1,507,439,267.54|
|25,687,112.91|16,633,501.71|18,722,010.13|
|1,738,703,915.32|766,632,166.44|1,526,161,277.67|

5. Investment income
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Reporting Period|
|4,982,722.91|
|38,085,000.05|
|311,652.40|
|43,379,375.36|

 XV. Supplementary materials
1. Items and amounts of extraordinary gains and losses
||
|-|
|Amount|
|-4,318,558.07|
|3,899,636.68|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
||
|-|
|Amount|
|7,374,385.49|
|3,470,016.08|
|10,425,480.18|
|2,606,370.05|
|7,819,110.13|

Notes: the number“+” among the non-current gains and losses items refers to profits and revenues, while “-”referred to losses or expenditure.
The recognition of the non-current gains and losses items was executed according to the regulations of No.1 of the Information Disclosure Explanatory Notice of the Companies Public Offering Securities-Non-current Gains and losses (Z-J-H-Announcement[2008] No. 43) .
2. Return on equity and earnings per share
Gujing Distillery Original Chinese Spirits Semi-annual Report 2016
|||
|-|-|
|Weighted average ROE (%)||
||Basic EPS|
|8.54|0.86|
|8.38|0.84|

Gujing Distillery Original Chinese Spirits Semi-annual Report 2016 Section X. Documents Available For Reference
(I) Financial statements signed and sealed by persons in charge of the Company, principal of accounting work, and principal of accounting institution (manager of finance department);
(II) In the Reporting Period, all originals of theCompany’s documents and public notices have been publicly disclosed in media designated by China Securities Regulatory Commission as well as the originals of all the public notices were deposited in the office of the Company.