2016-04-29-深交所-张_裕Ｂ_2016年第一季度报告正文（英文版）_8页_334kb

Yantai Changyu Pioneer Wine Co. Ltd. 2016 First Quarter Report Summary

I. Important Notice

• Responsibility: The board of directors, board of supervisors, directors, supervisors, and senior managers of the company confirm the truthfulness, accuracy, and completeness of the report.
• Director Participation: All directors attended the meeting to deliberate on the report and none objected to it.
• Financial Assurance: Mr. Sun Liqiang (Chairman), Mr. Leng Bin (CFO), and Mr. Jiang Jianxun (Financial Director) assure the accuracy of the financial report.

II. Key Financial Data and Shareholders' Changes

1. Key Financial Data

2. Irregular Profit and Loss

• Irregular Profit and Loss: The company has defined irregular profit and loss, and there is no situation where non-recurring profit and loss is treated as recurring.
• Details of Irregular Profit and Loss:
  • Gain on disposal of non-current assets: 72,728 CNY
  • Government grants: 3,887,501 CNY
  • Other non-operating income and expenses: 1,095,395 CNY
  • Less: Income tax effect: 1,011,066 CNY
  • Total Irregular Profit and Loss: 4,044,558 CNY

3. Shareholders' Information

• Total Common Shareholders: 36,502

• Top 10 Common Shareholders:

  1. Yantai Changyu Group Company Limited (50.40%, 345,473,856 shares, A share)
  2. GAOLING FUND, L.P. (3.11%, 21,300,919 shares, B share)
  3. China Securities Finance Corp (2.33%, 15,997,455 shares, A share)
  4. BBH BOS S/A FIDELITY FD - China Focus FD (2.27%, 15,576,126 shares, B share)
  5. Greenwood's China Alpha Master Fund (1.47%, 10,082,711 shares, B share)
  6. Golden China Master Fund (1.08%, 7,389,916 shares, B share)
  7. Norges Bank (0.96%, 6,584,748 shares, B share)
  8. Guotai Junan Securities (Hong Kong) Limited (0.78%, 5,317,307 shares, B share)
  9. Central Huijin Asset Management Ltd. (0.69%, 4,761,200 shares, A share)
  10. BBH A/C Vanguard Emerging Markets Stock Index Fund (0.55%, 3,788,487 shares, B share)

• No associated relationships or accordant actions among the top 10 shareholders.

• No financing activities or stock trading business involvement by the top 10 shareholders.

III. Major Issues

1. Main Accountant Data and Financial Index Changes

• Monetary Capital: Increased by 55.27%, mainly due to returned sales money.
• Notes Receivable: Increased by 202.81%, due to growth in bank acceptances.
• Accounts Receivable: Increased by 27.44%, due to expansion of direct-selling business and credit sales.
• Inventory: Decreased by 23.84%, due to product sales reducing inventory and materials.
• Notes Payable: Decreased by 35.07%, due to payments made during the period.
• Accounts Payable: Decreased by 39.21%, due to payments made during the period.
• Advance Receipt: Increased by 39.6%, due to increased advance orders from clients.

2. Financial Expense Increase

• Financial Expense: Increased by 174.7%, mainly due to higher interest expenditure on bank loans and lower interest income.

3. Cash Flow Changes

• Cash for Purchasing Commodities and Services: Increased by 70.43%, due to payment of previous material purchases and staff remuneration.
• Subtotal of Cash Outflow in Financing Activities: Increased by 1814.92%, due to increased debt repayment.
• Net Cash Flow in Financing Activities: Increased by 5220.62%, due to increased loan cash inflow.

4. Commitments

• Commitments at IPO or Refinancing:
  • Yantai Changyu Group Co., Ltd.:
    • Solve Horizontal Competition: Non-horizontal competition, performed.
    • Clear the Purpose of Brand Royalty: Trademark royalty paid annually, performed.
• All commitments were completed during the report period.

5. Operating Performance Forecast (Jan–Jun 2016)

• No warning or explanation for possible loss of cumulative net profit or significant change compared to the same period last year.

6. Security and Derivative Investment

• No security investment or derivative investment during the report period.

7. Receptions, Communication, and Interviews

• No activities of receptions, communication, or interviews were conducted during the report period.

8. Illegal External Guarantee

• No illegal external guarantees were made during the report period.

9. Non-Operating Fund Occupation

• No non-operating fund occupation by controlling shareholders or related parties during the report period.

Summary

Yantai Changyu Pioneer Wine Co. Ltd. reported a 3.12% increase in business income and a 2.37% rise in net profit for Q1 2016 compared to the same period in 2015. However, net cash flows from operations decreased by 13.21%. The company's total assets and net assets increased by 7.32% each, reflecting growth in its financial position.

The irregular profit and loss amounted to 4,044,558 CNY, primarily from government grants and asset disposal. The top 10 common shareholders were mostly institutional investors, with Yantai Changyu Group holding the largest stake at 50.40%. No associated relationships or accordant actions were found among the top shareholders.

The company experienced significant changes in key financial indicators, such as a 55.27% increase in monetary capital and a 202.81% rise in notes receivable. Inventory and payables decreased due to sales and payments. Financial expense surged by 174.7%, driven by higher interest costs and lower interest income.

All commitments made during the report period were fulfilled, including those related to brand royalty and resolving horizontal competition. No security, derivative, or illegal external guarantee investments were made, and no non-operating fund occupation was reported.

The company did not conduct any receptions, communication, or interviews during the period. The forecast for the first half of 2016 indicated no significant warning or explanation for potential net profit changes.