2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd. Shares Code:000869， 200869 Shares Abbreviation: ChangyuA， Changyu B Notice No.: 2016-Final01 Yantai Changyu Pioneer Wine Co. Ltd. 2016 Annual Report Abstract
1. Important Warning
This Annual Report abstract comes from the whole contents of annual report. If investors desire to comprehend theCompany’s operating results, financial situation and future development plan, please read the Annual Report on the media specified by the China Securities Regulatory Commission. 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. Mr. Sun Liqiang (Chairman of the Company), Mr. Leng Bin (Chief Financial Officer) and Mr. Jiang Jianxun (Financial Director) assure the truthfulness, accuracy and completeness of the financial report in the annual report.
All directors personally attended the meeting for deliberating the annual report of 2015.
Non-standard audit opinion notice
□Available Not available
The preliminary scheme of the reportperiod’s common stock profit distribution or increasing equity with reserve deliberated by the board of the directors
Available □Not available
Whether to increase equity with reserve
□Yes No
TheCompany’s preliminary scheme of common stock profit distribution deliberated and passed by the board of the directors is as following: Based on the Company total 685,464,000shares，we plan to pay CNY 5 in cash as dividends for every 10 shares (including tax) to theCompany’s all shareholders, send 0 bonus(including tax) and capital reserve will not be transferred to equity. The preliminary scheme of this reportperiod’s preferred share profit distribution deliberated and passed by the board
□Available Not available
2.Brief Introduction of the Company
(1) Company introduction
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||Changyu A,||000869,|
|Abbreviation of the Shares:||Code number of the Shares||
||Changyu B||200869|
|Place of listing of the Shares|Shenzhen Stock Exchange|||

2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
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|-|-|-|
|Abbreviation of the Shares after|||
||-||
|alteration (if have)|||
||Secretary to the Board of|Authorized Representative of the|
|Contact person and information|||
||Directors|Securities Affairs|
|Name|Mr. Qu Weimin|Mr. Li Tingguo|
||56 Dama Road, Yantai,|56 Dama Road, Yantai,|
|Address|||
||Shandong, China|Shandong, China|
|Fax|0086-535-6633639|0086-535-6633639|
|Tel|0086-535-6633656|0086-535-6633656|
|E-mail|quwm@changyu.com.cn|stock@changyu.com.cn|

(2) Main businesses during the report period or product brief introduction
During the report period, theCompany’s main business is to produce and operate wine and brandy, thus providing the domestic and foreign consumers with healthy and fashionable alcoholic drinks. Compared with earlier stage, there are no significant changes happened to theCompany’s main businesses. The wine industry that the Company involved in is still in the growth stage, the whole domestic wine market is on the rising trend. The Company takes the dominant position in the domestic wine market.
(3) Key accounting data and financial indicators
①Key accounting data and financial indicators in recent three years
Whether the Company makes retroactive adjustments or restates the accounting data of previous fiscal years because of changes of accounting policy and/or accounting errors.
□YesNo
Unit: CNY
||||||
|-|-|-|-|-|
||||More or less than||
|Item|2016|2015||2014|
||||Last year (%)||
|Business revenue|4,717,596,472|4,649,722,368|1.46%|4,156,727,525|
|Net profit attributed|982,460,488|1,030,073,860|||
|to the shareholders of|||-4.62%|977,707,711|
|the listed company|||||
|Net profit attributed||993,268,823|||
|to the shareholders of|||||
|the listed company|||||
||941,730,478||-5.19%|950,191,379|
|after deducting the|||||
|irregular profit and|||||
|loss|||||
|Net cash flows from|889,911,970|1,143,046,367|||
|the operating|||-22.15%|1,070,083,296|
|activities|||||
|Basic earnings per|1.43|1.5|-4.67%|1.43|

2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
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|-|-|-|-|-|
|share (CNY/share)|||||
|Diluted earnings per|1.43|1.5|||
||||-4.67%|1.43|
|share (CNY/share)|||||
|Weighted average for||14.40%|||
|earning rate of the|12.55%||-1.85%|13.96%|
|net assets|||||
||||More or less than||
||Dec. 31st 2016|Dec. 31st 2015||Dec. 31st 2014|
||||Last year (%)||
|Total assets|11,528,077,971|10,344,211,461|11.44%|8,912,232,640|
|Net Assets attributed|8,209,010,989|7,564,099,003|||
|to the shareholders of|||8.53%|6,840,452,145|
|the listed company|||||

②Key financial indicators by quarter
Unit: CNY
||||||
|-|-|-|-|-|
||1st Quarter|2nd Quarter|3rd Quarter|4th Quarter|
|Business revenue|1,882,230,620|870,802,179|1,010,732,839|953,830,834|
|Net profit attributed to|542,806,719|152,215,128|129,748,790|157,689,851|
|the shareholders of the|||||
|listed company|||||
|Net profit attributed to|538,762,161|139,716,160|123,011,178|140,240,980|
|the shareholders of the|||||
|listed company after|||||
|deducting the irregular|||||
|profit and loss|||||
|Net cash flows from the|605,256,456|77,491,913|308,317,385|-101,153,784|
|operating activities|||||

Whether there are differences between the above mentioned financial indicators or their sum and the related financial indicators in the quarterly reports and semi-annual reports disclosed by the Company.
□YesNo
2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd. (4) Capital stock andshareholders’ situation
① Number of common stockholder and preferred shareholder recovering voting power, and situation of shares held by top ten shareholders
Unit: share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||0|Total number of preferredshareholder recoveringvoting power by the endof last month before thedisclosure day of theannual report|||0|
|||Total number of|||||||||
||||||Total number of preferred||||||
|||common shareholders|||||||||
||||||shareholder recovering||||||
|Total shareholders in the report period|41,984|by the end of last month||42,254|||||||
||||||voting power by the end||||||
|||before the disclosure|||||||||
||||||of report period||||||
|||day of the annual report|||||||||
|The top 10 shareholders holding situation|||||||||||
||||Percentage|||Number of||Pledged or frozen|||
||||||Shares held until the end||||||
|Name of Shareholders|Character of shareholders|||||restricted|||||
||||||of the report period||||||
||||(%)|||shares||Share status|Amount||
|YANTAI CHANGYU GROUP CO. LTD.|Domestic non-state-ownedlegal person||50.40%||345,473,856|0|||||
|||||||||--|0||
|GAOLING FUND,L.P.|Foreign legal person||3.11%||21,300,919|0|||||
|||||||||--|0||
|CHINA SECURITIES FINANCE CORP|State-owned legal person||2.32%||15,924,155|0|||||
|||||||||--|0||
|BBH BOS S/A FIDELITY FD - CHINAFOCUS FD|Foreign legal person||2.22%||15,241,826|0|||||
|||||||||--|0||
|TianAN property insurance co.,LTD—Baoying No.1|Domestic non-state-ownedlegal person||1.16%||7,939,166|0|||||
|||||||||--|0||

2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|NORGES BANK|Foreign legal person||0.96%|6,584,748|0|||
|||||||--|0|
|GUOTAI JUNANSECURITIES(HONGKONG) LIMITED|Foreign legal person||0.78%|5,321,478|0|||
|||||||--|0|
|CENTRAL HUIJIN ASSETMANAGEMENT LTD.|State-owned legal person||0.69%|4,761,200|0|||
|||||||--|0|
|BBH A/C VANGUARD EMERGINGMARKETS STOCK INDEX FUND|Foreign legal person||0.55%|3,788,487|0|||
|||||||--|0|
|FIDELITY CHINA SPECIALSITUATIONS PLC|Foreign legal person||0.55%|3,779,202|0|||
|||||||--|0|
|The explanation for the associated relationship andaccordant action||Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship oraccordant action relationship with the other 9 listed shareholders, and the relationship among the othershareholders is unknown.||||||
|Explanation for the top 10 shareholders who involvedin financing activities and stock trading business (ifany)||NO||||||

②Number of preferred shareholder and situation of preferred shares held by top ten preferred shareholders
□Available Not available
There are no shares held by preferred shareholders during the report period.
2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.③Introduction for property right and control relations between the Company and its actual controllers
Yantai Guofeng Investment
Illva Saronno Holding Spa
Holdings Co., Ltd
2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd. (5) Company Bonds
Whether the Company exists public offering and lists on the Stock Exchange, and the Company is unable to fully pay company bonds in the approved announcement date of this annual report before maturity or in the maturity date.
No.
3. Management Discussion and Analysis
(1) Brief introduction of operation situation during the report period
Whether the Company need to follow the disclosure requirement of special business?
No.
(2) Whether major business has significant changes during the report period?
□Yes No
(3) The condition of products accounting for over10% in theCompany’s main operating incomes or main operating profits
Available □Not available
Unit: CNY
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|-|-|-|-|-|-|-|
|||||||Year-on-|
|||||Year-on-|Year-on-||
|||||||year|
|||||year|year||
|||||||increase|
|||||increase|increase||
||||Gross|||or|
|||||or|or||
||Operating income|Operating cost|profit|||decrease|
|||||decrease|decrease||
||||rate|||(%) of|
|||||(%) of|(%) of||
|||||||gross|
|||||operating|operating||
|||||||profit|
|||||income|cost||
|||||||rate|
|Wine|3,700,806,317|1,204,784,351|67.45%|1.13%|5.15%|-1.24%|
|Brandy|905,687,936|317,845,705|64.91%|2.54%|3.46%|-0.31%|

 (4) Whether there are features of operating seasonality or periodicity required special attention□Yes No
(5) Explanation for the operating income, operating cost, total net profit attributed to the common shareholders of the listed company or constituting major changes compared with former report period
□AvailableNot available
(6) Face of suspension and termination of listing
□AvailableNot available
2016 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd. (7) Related items involving financial report
①Explanation for the changes of the accounting policy, accounting estimation and accounting method
□AvailableNot available
There are no changes to the accounting policy, accounting estimation and accounting method during the report period.
②During the report period, the situation explanation for the correction of major accounting errors which need to be retrospect and restated
□Available Not available
There is no situation for the correction of major accounting errors which need to be retrospect and restated.
③Compared with the previousyear’s financial report, explanation for the changes of the consolidated statements scope.
Available □Not available
For consolidation scope of the year, please refer to Financial Report Notes VIII "Equity in other entities" of “2016 Annual Report ”in detail. For detail of changes in consolidation scope of the year, please refer to Finacial Report Notes VII "Change in consolidation scope".