2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. Shares Code: 000869. 200869 Shares Abbreviation: ChangyuA、Changyu B Notice No.: 2018-Final02
Yantai Changyu Pioneer Wine Co. Ltd.
2018 the First Quarter Report
I. Important Notice
The board ofdirectors，the board ofsupervisors，directors, supervisors& senior managers of the Company collectively and individually accept full responsibility for thetruthfulness， accuracy and completeness of the information contained in this report and confirm that to the best of their knowledge and belief there are no unfaithful facts, significant omissions or misleading statements.
All directors attended the meeting for deliberating this quarter report.
Mr. Zhou Hongjiang (Chairman of the Company), Mr. Jiang Jianxun (Chief Financial Officer) and Mr. Jiang Jianxun (Financial Director) assure the truthfulness, accuracy and completeness of the financial report in the quarter report.
2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd.II、Corporate Information
1. Key accounting data and financial indicators
Whether the Company makes retroactive adjustments or restates the accounting data of previous fiscal years.
□ Yes V No
|||||
|-|-|-|-|
|||The same period of|More or less than last|
|Item|The report period|||
|||last year|year (%)|
|Business income (CNY)|1,804,057,976.00|1,896,586,469.00|-4.88%|
|Net profit attributed to the|479,444,238.00|516,634,494.00||
|shareholders of the listed|||-7.20%|
|company (CNY)||||
|Net profit attributed to the||||
|shareholders of the listed||||
||466,181,564.00|512,684,945.00|-9.07%|
|company after deducting the||||
|irregular profit and loss (CNY)||||
|Net cash flows from the|507,263,964.00|384,358,508.00||
||||31.98%|
|operating activities (CNY)||||
|Basic earnings per share|0.70|0.75||
||||-6.67%|
|(CNY)||||
|Diluted earnings per share|0.70|0.75||
||||-6.67%|
|(CNY)||||
|Weighted average for earning||||
||5.24%|6.10%|-0.86%|
|rate of the net assets||||
||The end of the||More or less than last|
|||The end of last year||
||report period||year (%)|
|Total assets (CNY)|13,134,043,590.00|12,536,755,208.00|4.76%|
|Net Assets attributed to the|9,380,239,163.00|8,906,342,299.00||
|shareholders of the listed|||5.32%|
|company (CNY)||||

Details of irregular profit and loss
V Yes□ No
Unit：CNY
||||
|-|-|-|
||From beginning of year||
|Item||Explanation|
||to end of report period||
|Gain on disposal of non-current assets, including|||
||84,719.00||
|the reversal of accrued impairment provision|||
|Government grants credited in profit and loss|||
|(except for those recurring government grants|||
|that are closely related to the entity's operation,|16,861,473.00||
|in line with related regulations and have proper|||
|basis of calculation)|||
|Other non-operating income and expenses|525,389.00||
|Less: Income tax effect|4,252,831.00||

2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd.
||||
|-|-|-|
|Minority interests effect(after-tax)|-43,924.00||
|Total|13,262,674.00|--|

The reasons shall be made clear and definitely as to the irregular profit and loss that the Company has defined by virtue of the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 - Irregular Profit and Loss and as to regarding the irregular profit and loss as recurrent profit and loss as specified in the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 - Irregular Profit and Loss.
□Available V Not available
There is no situation regarding the non-recurring profit and loss as defined and specified in the Explanatory Announcement on PublicCompany’s Information Disclosure No.1 - Non-recurring Profit and Loss as recurrent profit and loss.
2. The total number of shareholders and top 10 shareholders at the end of the report period 1) The number of the common shareholders and preferred shareholders with recovered voting power as well as the shareholding of top 10 shareholders
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||44,606||Total number of|||0|||
|Total number of common||||preferred||||||
|shareholders at the end of report||||shareholders with recov||||||
|period||||ered voting power at the||||||
|||||end of report period||||||
|The top 10 common shareholders||||||||||
|||||||Number||Pledged or||
||Character of||Percentage|||of||frozen||
|Name of Shareholders|||||Shares held|||||
||shareholders||(%)|||restricted||Share|Amo|
|||||||shares||status|unt|
|YANTAI CHANGYU GROUPCOMPANY LIMITED|Domestic non-state-ownedlegal person||50.40%||345,473,856|0||||
|||||||||--|0|
|GAOLING FUND,L.P.|Foreign legalperson||3.08%||21,090,219|0||||
|||||||||--|0|
|CHINA SECURITIES FINANCECORP|State-ownedlegal person||2.28%||15,638,655|0||||
|||||||||--|0|
|BBH BOS S/A FIDELITY FD -CHINA FOCUS FD|Foreign legalperson||2.22%||15,241,826|0||||
|||||||||--|0|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreign legalperson||1.00%||6,828,497|0||||
|||||||||--|0|
|SHENWAN HONGYUANSECURITIES(HONGKONG)LIMITED|Foreign legalperson||0.96%||6,554,654|0||||
|||||||||--|0|
|FIDELITY PURITAN TRUST:FIDELITY SERIES INTRINSICOPPORTUNITIES FUND|Foreign legalperson||0.89%||6,100,762|0||||
|||||||||--|0|
|UNION LIFE INSURANCE CO.,LTD --- DIVIDEND ---PERSONAL INSURANCE|Domestic non-state-ownedlegal person||0.79%||5,446,039|0||||
|||||||||--|0|

2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|DIVIDEND|||||||||||
|CENTRAL HUIJIN ASSETMANAGEMENT LTD.|State-ownedlegal person||0.69%||4,761,200||0||||
||||||||||--|0|
|VANGUARD EMERGINGMARKETS STOCK INDEXFUND|Foreign legalperson||0.55%||3,788,487||0||||
||||||||||--|0|
|The top 10 common shareholders with unrestricted shares|||||||||||
|Name of Shareholders||||Number of||Type of share|||||
|||||unrestricted||Type of||Amount|||
|||||shares held||share|||||
|YANTAI CHANGYU GROUP COMPANY LIMITED||||345,473,856||A share||345,473,856|||
|GAOLING FUND,L.P.||||21,090,219||B share||21,090,219|||
|CHINA SECURITIES FINANCE CORP||||15,638,655||A share||15,638,655|||
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD||||15,241,826||B share||15,241,826|||
|GUOTAI JUNAN SECURITIES(HONGKONG)LIMITED||||6,828,497||B share|||||
|||||||||6,828,497|||
|SHENWAN HONGYUAN SECURITIES(HONGKONG)LIMITED||||6,554,654||B share|||||
|||||||||6,554,654|||
|FIDELITY PURITAN TRUST: FIDELITY SERIESINTRINSIC OPPORTUNITIES FUND||||6,100,762||B share|||||
|||||||||6,100,762|||
|UNION LIFE INSURANCE CO., LTD --- DIVIDEND ---PERSONAL INSURANCE DIVIDEND||||5,446,039||A share|||||
|||||||||5,446,039|||
|CENTRAL HUIJIN ASSET MANAGEMENT LTD.||||4,761,200||A share||4,761,200|||
|VANGUARD EMERGING MARKETS STOCKINDEX FUND||||3,788,487||B share|||||
|||||||||3,788,487|||
|||Among the top 10 shareholders, Yantai Changyu Group|||||||||
|The explanation for the associated|||||||||||
|||Company Limited has no associated relationship or accordant|||||||||
|relationship and accordant action|||||||||||
|||action relationship with the other 9 listed shareholders, and the|||||||||
|of the top 10 shareholders|||||||||||
|||relationship among the other shareholders is unknown.|||||||||
|Explanation for the top 10|||||||||||
|common shareholders who|||||||||||
|||No|||||||||
|involved in financing activities|||||||||||
|and stock trading business(if any)|||||||||||

Whether or not theCompany’s top 10 common shareholders and top 10 common shareholders with unrestricted shares promise to buy back trading during the report period
□ Yes√ No
There are no top 10 common shareholders and top 10 common shareholders with unrestricted shares in the Company promise to buy back trading during the report period.
2) The total number of the preferred shareholders and top 10 preferred shareholders at the end of the report period
□Available V Not available
2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. III Major Issue
1. Great changes and reasons on main accountant data and financial index
√Available □Not available
Compared the end of the report period with the beginning of the report period: notes receivable increases by109.5%, mainly due to the growth on bank acceptances; advance payment increases by93.91%, mainly due to the growth of advances payment for raw material procurement; interest receivable increases by294.4%, mainly due to the growth of bank term deposits; constructions in progress increases by12.41%, mainly due to the increase in cumulative investment in technological transformation projects; goodwill increases by28.02%, mainly due to theCompany’s acquisition of goodwill generated by Kilikanoon Estate Pty Ltd in Australia; deposits received increases by35.28%, mainly due to growth of advances from customers; non-current liabilities due within one year increased by20.11%, mainly due to the transfer of long-term accounts payable.
Compared the same period with last year: operating revenue decreases by4.88%, although cash received related to sell products and supply labor service in the report period increases by6.84%, it is affected by those factors including the adjustment ofCompany’s marketing system, payment and settlement methods of partial marketing expenses, commissioning of new product lines being not completed, as well as product optimization. Meanwhile the Company takes actions in improving purchase mode of partial products, strengthening order drive and small order for distributors etc. that makes slight reduction in sales revenue confirmed by accounting standard; sales expense decreases by4.17%, mainly owing to decrease in advertising expense; administrative expense increases by19.8% mainly owing to increase in depreciation and intangible assets amortization; financial expense decreases by19.17% mainly owing that, with the use of partial bank loan into investment project construction, corresponding loan interest is included into the cost of fixed assets; net profit attributable to parent company decreases by7.2% mainly owing to decrease in income; Other cash paid related to operating activities increases by27.27% mainly owing to payment of marketing expense exemplified as advertising expense.
The judgment of Company is that with the reformation of organizational structure, marketing policies and marketing system are gradually adjusted into position; the construction of marketing team and incentive measures are further perfected; product structure is constantly optimized; new product lines are ready to complete commissioning, the Company will enter new step of steady development in the future and promote the growth of operating performance.
2. Analysis explanation of the majorissue’s process, its influence and the solution
□Available V Not available
2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. 3. The commitments that theCompany’s actual controllers, shareholders, related parties, purchasers, the Company and other related parties do not implement completely
exceeding the time limit within report period
√available □not available
||||||||
|-|-|-|-|-|-|-|
||Commitment|Commitment|Commitment|Commitment|Commitment||
|Commitments||||||Implementation|
||Party|Type|content|time|period||
|Commitments atshare reform|||||||
||-||－||||
|Commitmentsmade inacquisitionreport or equitychanges report|||||||
||-||-||-|-|
|Commitments atassetrestructuring|||||||
||-||-||-|-|
|Commitments atthe initial publicoffering orrefinancing|Yantai|Solve|||||
||Changyu|horizontal|||||
||||Non-horizontal|||Has been|
||Group Co.,|competition||1997.05.18|Permanent||
||||competition|||performing|
||Ltd||||||
|||Clear the|According to||||
|||purpose of|"Trademark||||
|||brand royalty|License||||
||||Contract", the||||
||||Company will||||
||||pay trademark||||
||||royalty for the||||
||||"Changyu"produ||||
||Yantai||||||
||||cts of Yantai||||
||Changyu||||||
||||Changyu Group|||Has been|
||Group Co.,|||1997.05.18|Permanent||
||||Co., Ltd every|||performing|
||Ltd||||||
||||year, Yantai||||
||||Changyu Group||||
||||Co., Ltd will use||||
||||trademark to||||
||||advertise||||
||||Changyu||||
||||trademarks and||||
||||the Contract||||
||||products.||||
|Equity incentivecommitments|||||||
|Commitmentsmade to theminorityshareholders ofthe Company|||||||
||-||-||-|-|

2018 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd.
||||
|-|-|-|
|Commitment|||
|under timely|||
||Yes||
|implementation|||
|or not|||
|For commitments that exceed the time limit and are not completed, specific reasons of not||No|
|completing the implementation and the next step|||

4. Forecast on the operating performance in the period from January to June of 2018
Warning and explanation for the estimation on the possible loss of cumulative net profit in the period from the beginning of this year to the end of the next report period or the great change comparing with same period of last year.
□Available V Not available
5. The situation of security investment
□Available V Not available
There is no security investment during the report period.
6. The situation of derivative investment
□Available V Not available
There is no derivative investment during the report period.
7. The activities registration form of receptions, communication and interview etc. during the report period
□Available V Not available
There are no activities of receptions, communication and interview etc. during the report period. 8. The situation of illegal external guarantee
□Available V Not available
There is no illegal external guarantee during the report period.
9. The situation of non-operating fund occupation of controlling shareholders and related parties
□Available V Not available
There is no non-operating fund occupation of controlling shareholders and related parties during the report period.
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
27th
April 2018