SharesCode:000869，200869 SharesAbbreviation:ChangyuA，ChangyuB NoticeNo.:2017-Final02 YantaiChangyuPioneerWineCompanyLimited 2017theFirstQuarterReportText I.ImportantNotice Theboardofdirectors，theboardofsupervisors，directors,supervisors&seniormanagers oftheCompanycollectivelyandindividuallyacceptfullresponsibilityforthetruthfulness， accuracyandcompletenessoftheinformationcontainedinthisreportandconfirmthattothe bestof their knowledgeand belief there areno unfaithful facts, significant omissionsor misleadingstatements. Alldirectorsattendedthemeetingfordeliberatingthisquarterreport. Mr.SunLiqiang(ChairmanoftheCompany),Mr.LengBin(ChiefFinancialOfficer)andMr. JiangJianxun(FinancialDirector)assurethetruthfulness,accuracyandcompletenessofthe financialreportinthequarterreport. II、CorporateInformation 1. Keyaccountingdataandfinancialindicators WhethertheCompanymakesretroactiveadjustmentsorrestatestheaccountingdataofprevious fiscalyears. □ Yes V No Item Thereportperiod ThesameperiodofMoreorlessthanlast lastyear year(%) Businessincome(CNY) 1,896,586,469 1,882,230,620 0.76% Netprofitattributedtothe shareholdersofthelisted 516,634,494 542,806,719 -4.82% company(CNY) Netprofitattributedtothe shareholdersofthelisted 512,684,945 538,762,161 -4.84% companyafterdeductingthe irregularprofitandloss(CNY) Netcashflowsfromthe 384,358,508 605,256,456 -36.50% operatingactivities(CNY) Basicearningspershare 0.75 0.79 -5.06% (CNY)Dilutedearningspershare 0.75 0.79 -5.06%(CNY)Weightedaverageforearning 6.10% 6.93% -0.83%rateofthenetassets Theendofthe TheendoflastyearMoreorlessthanlast reportperiod year(%)Totalassets(CNY) 11,857,812,108 11,528,077,971 2.86%NetAssetsattributedtotheshareholdersofthelisted 8,727,017,524 8,209,010,989 6.31%company(CNY)DetailsofirregularprofitandlossVYes□NoUnit：CNY Item Frombeginningofyear Explanation toendofreportperiod Gainondisposalofnon-currentassets,including -21,933 thereversalofaccruedimpairmentprovision Government grants credited in profit and loss (except for those recurring government grants thatarecloselyrelatedtotheentity'soperation, 3,725,036 inlinewithrelatedregulationsandhaveproper basisofcalculation) Othernon-operatingincomeandexpenses 1,246,917 Less:Incometaxeffect 1,000,471 Total 3,949,549 -- ThereasonsshallbemadeclearanddefinitelyastotheirregularprofitandlossthattheCompanyhas definedbyvirtueoftheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1 -IrregularProfitandLossandastoregardingtheirregularprofitandlossasrecurrentprofitandlossas specified in the Explanatory Announcement on Public Company’s Information Disclosure No.1- IrregularProfitandLoss. □Available VNotavailable Thereisnosituationregardingthenon-recurringprofitandlossasdefinedandspecifiedinthe ExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1-Non-recurring ProfitandLossasrecurrentprofitandloss. 2. Thetotalnumberofshareholdersandtop10shareholdersattheendofthereportperiod 1) Thenumberofthecommonshareholdersandpreferredshareholderswithrecoveredvoting poweraswellas theshareholdingoftop10shareholders Unit:share 42,254 Totalnumberof 0 Totalnumberofcommon preferred shareholdersattheendofreport shareholderswithrecov period eredvotingpoweratthe endofreportperiod Thetop10commonshareholders Number Pledgedor NameofShareholders Characterof Percentage Sharesheld of frozen shareholders (%) restrictedShareAmo shares status unt YANTAICHANGYUGROUP Domesticnon- COMPANYLIMITED state-owned 50.40% 345,473,856 legalperson CHINASECURITIESFINANCE State-owned 2.32% 15,924,155 CORP legalperson GAOLINGFUND,L.P. Foreignlegal 3.11% 21,300,919 person BBHBOSS/AFIDELITYFD- Foreignlegal 2.22% 15,241,826 CHINAFOCUSFD person TIANANPROPERTY Domesticnon- INSURANCECO.,LTD― state-owned 1.24% 8,519,160 BAOYINGNO.1 legalperson NORGESBANK Foreignlegal 0.90% 6,147,993 person GUOTAIJUNAN Foreignlegal SECURITIES(HONGKONG) person 0.76% 5,208,208 LIMITEDCENTRALHUIJINASSET State-owned 0.69% 4,761,200MANAGEMENTLTD. legalpersonFIDELITYPURITANTRUST: Foreignlegal 0.60% 4,115,481FIDELITYSERIESINTRINSIC personOPPORTUNITIESFUND BBHA/CVANGUARD Foreignlegal EMERGINGMARKETSSTOCKperson 0.55% 3,788,487 INDEXFUNDMASTERFUND Thetop10commonshareholderswithunrestrictedshares NameofShareholders Numberof Typeofshare unrestricted Typeof Amount sharesheld share YANTAICHANGYUGROUPCOMPANY 345,473,856Ashare 345,473,856 LIMITEDCHINASECURITIESFINANCECORP 15,924,155Ashare 15,924,155GAOLINGFUND,L.P. 21,300,919Bshare 21,300,919BBHBOSS/AFIDELITYFD-CHINAFOCUSFD 15,241,826Bshare 15,241,826TIANANPROPERTYINSURANCECO.,LTD― 8,519,160Ashare 8,519,160BAOYINGNO.1NORGESBANK 6,147,993Bshare 6,147,993GUOTAIJUNANSECURITIES(HONGKONG) 5,208,208Bshare 5,208,208LIMITEDCENTRALHUIJINASSETMANAGEMENTLTD. 4,761,200Ashare 4,761,200FIDELITYPURITANTRUST:FIDELITYSERIES 4,115,481Bshare 4,115,481INTRINSICOPPORTUNITIESFUNDBBHA/CVANGUARDEMERGINGMARKETS 3,788,487Bshare 3,788,487STOCKINDEXFUNDMASTERFUNDTheexplanationfortheassociated Amongthetop10shareholders,YantaiChangyuGrouprelationshipandaccordantaction CompanyLimitedhasnoassociatedrelationshiporaccordantofthetop10shareholders actionrelationshipwiththeother9listedshareholders,andthe relationshipamongtheothershareholdersisunknown.Explanationforthetop10commonshareholderswho Noinvolvedinfinancingactivitiesandstocktradingbusiness(ifany)WhetherornottheCompany’stop10commonshareholdersandtop10commonshareholderswithunrestrictedsharespromisetobuybacktradingduringthereportperiod□Yes√NoTherearenotop10commonshareholdersandtop10commonshareholderswithunrestrictedsharesintheCompanypromisetobuybacktradingduringthereportperiod.2) Thetotalnumberofthepreferred shareholdersandtop10preferredshareholdersattheendof thereportperiod□Available VNotavailable IIIMajorIssue 1. Greatchangesandreasonsonmainaccountantdataandfinancialindex √Available □Notavailable Comparedtheendofthereportperiodwiththebeginningofthereportperiod:notesreceivable increasesby128.57%,mainlyduetothegrowthonbankacceptances;accountsreceivableincreases by14%,mainlyduetotheexpansionofCompany’sdirect-sellingbusinessandincreaseofclients’ salesamountoncredit;advancepaymentincreasesby74.05%,mainlyduetothegrowthof advancespaymentforrawmaterialprocurement;othercurrentassetsincreasesby46.86%,mainly duetothegrowthofpendingdeductionofVATinputtax;inventorydecreasesby17.09%,mainly duethatthesalesofproductsresultinthereduceofinventoryandmaterials;notespayable decreasesby69.15%,mainlyduethatthenotespayableamountispaidduringthereportperiod; accountspayabledecreasesby36.52%,mainlybecauseaccountspayableamountispaidduringthe reportperiod;otheraccountspayableincreasesby20.87%,mainlyduetothegrowthofmarketing expensessuchasadvertisingfeepayable. Comparedwiththesameperiodoflastyear:thenetamountofothercomprehensiveincomeafter- taxincreasesby85.30%,thenetamountofothercomprehensiveincomeafter-taxattributableto owneroftheparentcompanyandothercomprehensiveincomethatwillbereclassifiedintoprofit andlosslaterincreaseby87.16%,mainlyduetothegrowthofforeigncurrencyfinancialstatement convertingbalanceoftheCompany’ssubordinateoverseasenterprises;netamountofcashflows generatedinoperatingactivitiesdecreasesby36.50%,mainlybecauseofdeclineofreceivedcash fromproductionsalesandrenderingofservice,aswellasthegrowthofcashpaymentforvarious taxes;subtotalcashinflowininvestmentactivitiesdecreasesby51.13%,mainlyduetothe reductionofregainingofthefixeddepositwhosedurationismorethanthree-month;cashreceived fromdebtsdecreasesby86.98%,mainlyduetothedeclineofbankloan;subtotalofcashoutflowin capital-raisingactivitiesreducesby76.37%,mainlyduetothedecreaseinthecashpaidfordebt repayment;netamountofcashflowgeneratedincapital-raisingactivitiesdecreasesby90.95%, mainlyduetothedeclineofbankloan;netincreaseofcashandcashequivalentsreducesby63.10%, mainlybecauseofdeclinesofreceivedcashfromproductionsales,renderingofserviceand bank loan.2. Analysisexplanationofthemajorissue’sprocess,itsinfluenceandthesolution□Available VNotavailable3. ThecommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties, purchasers,theCompanyandotherrelatedpartiesdonotimplementcompletely exceedingthetimelimitwithinreportperiod√available □notavailable Commitments Commitment Commitment Commitment Commitment CommitmentImplementation Party Type content time period Commitmentsat- － sharereform Commitmentsmadein acquisition - - - - reportorequity changesreport Commitmentsat asset - - - - restructuring Yantai Solve Changyu horizontal Non-horizontal Hasbeen GroupCo., competition competition 1997.05.18 Permanent performingLtd Clearthe Accordingto purposeof "Trademark brandroyalty License Contract",the CompanywillCommitmentsat paytrademarktheinitialpublic royaltyfortheofferingor Yantai "Changyu"produrefinancing Changyu ctsofYantai GroupCo., ChangyuGroup 1997.05.18 Permanent Hasbeen Ltd Co.,Ltdevery performing year,Yantai ChangyuGroup Co.,Ltdwilluse trademarktoadvertise Changyu trademarksand theContract products. Equityincentive commitmentsCommitmentsmadetotheminority - - - -shareholdersoftheCompanyCommitmentundertimely Yesimplementationornot Forcommitmentsthatexceedthetimelimitandarenotcompleted,specificreasonsofnot No completingtheimplementationandthenextstep 4.ForecastontheoperatingperformanceintheperiodfromJanuarytoJuneof2017 Warningandexplanationfortheestimationonthepossiblelossofcumulativenetprofitinthe periodfromthebeginningofthisyeartotheendofthenextreportperiodorthegreatchange comparingwithsameperiodoflastyear. □Available VNotavailable 5.Thesituationofsecurityinvestment □Available VNotavailable Thereisnosecurityinvestmentduringthereportperiod. 6.Thesituationofderivativeinvestment □Available VNotavailable Thereisnoderivativeinvestmentduringthereportperiod. 7.Theactivitiesregistrationformofreceptions,communicationandinterviewetc.duringthe reportperiod □Available VNotavailable Therearenoactivitiesofreceptions,communicationandinterviewetc.duringthereportperiod. 8.Thesituationofillegalexternalguarantee □Available VNotavailable Thereisnoillegalexternalguaranteeduringthereportperiod. 9.Thesituationofnon-operatingfundoccupationofcontrollingshareholdersandrelated parties□Available VNotavailableThereisnonon-operatingfundoccupationofcontrollingshareholdersandrelatedpartiesduringthereportperiod. YantaiChangyuPioneerWineCo.Ltd. BoardofDirectors 28thApril2017