张裕B：2022年年度报告摘要(英文版)

Stock Code: 000869， 200869 Stock Abbreviation: Changyu A， Changyu B Announcement No.: 2023-Final 01

Yantai Changyu Pioneer Wine Co., Ltd.

2022 Annual Report Abstract

April 13, 2023

I. Important Notice

This Annual Report Abstract comes from the whole contents of annual report. If investors desire tocomprehensively understand the Company’s operating results, financial situation and futuredevelopment plan, please read the Annual Report on the media specified by the China SecuritiesRegulatory Commission.

Except for the following director, other directors attended this board meeting for reviewing thisannual report in person.

Non-standard audit opinion notice

□Available ?Not available

The preliminary scheme of the report period’s ordinary share profit distribution or increasing equitywith reserve deliberated by the board of the directors?Available □Not available

Whether to increase equity with reserve

□Yes ?No

The Company’s preliminary scheme of profit distribution deliberated and passed by the board ofdirectors this time is shown as following: Based on the Company’s total 685,464,000 shares, we planto pay CNY4.5 (including tax) in cash as dividends for every 10 shares to all shareholders and send 0bonus share (including tax). Capital reserve will not be transferred to equity.

The preliminary scheme of preferred share profit distribution during the report period deliberated andpassed by the board of directors

□Available ?Not available

II. Basic information of the Company

1. Brief introduction of the Company

2. Main businesses during the report period or brief introduction of products

(1) Situation of industry in which the Company operates during the report periodIn 2022, the domestic wine market continued to decline due to the impact of the economic situationand the pressure from other liquors such as Baijiu and beers. The sales volume of imported wine anddomestic wine continued the trend of “double decline”, and the rising costs of raw material andpackaging further dragged down the profitability of enterprises. The vast majority of wine enterpriseswere in difficulty, and the domestic wine industry was still on the edge of loss.In the face of difficulties and challenges, the Company persisted in taking the market as the center,adhered to the development strategy of “Focus on middle-and-high level, Focus on high quality,Focus on large single product” and the marketing philosophy of “obtaining growth from the terminaland nurturing consumers”, took market-oriented action to accelerate the pace of business divisionreform, actively carry out circle marketing and continue to promote digital transformation . In 2022,the Company realized the operating revenue of CNY3918.94million with a year-on-year decrease of

0.86% and the net profit attributable to the parent company’s shareholders of CNY428.68millionwith a year-on-year decrease of 14.28%, maintaining the leading role in the industry.

(2) Main businesses during the report period

The Company need to comply with the disclosure requirements of Food and Liquor ManufacturingRelated Businesses in Shenzhen Stock Exchange Industry Information Disclosure Guideline No. 3 -Industry Information Disclosure.

① Situation of the industry in which the Company operates

During the report period, the Company’s main business was production and operation of wine and

brandy, thus providing domestic and foreign consumers with healthy and fashionablealcoholic drinks. Compared with earlier stage, there were no significant changes happened to theCompany’s main business. The wine industry that the Company involved in was still in growth stage.Being affected by many factors including slowing domestic economic growth and strong pressurefrom alternatives in recent years, the competition in the market was fierce, the wine consumptioncontinuously declined, and a large number of wine production enterprises were on the brink of loss,even some wine enterprises were eliminated from the market. However, seen from the long term, theexisting consumption concept might change with the increase of people’s income level and theirpursuit of a relaxed, romantic and healthy lifestyle. More domestic wine would be drunk by people,and wine would enter more and more household consumption. The situation of current low averageconsumption of domestic wine would gradually improve. The Company was at the forefront in thedomestic wine market and was significantly ahead of major domestic competitors.The Company’s products were divided into two series: wine and brandy. For wine, main brandsincluded Changyu, Noble Dragon, AFIP, Longyu, Golden Ice Valley, Zenithwirl, Vermouth, Rena,Baron Balboa, J.LORMIN, Atrio, Kilikanoon and IWCC and so on. For Brandy, main brandsincluded Koya, Mminni, Pagese, Roullet Fransac and so on.

② The production licenses of main products obtained by the Company in China

③ Explanation for other major events

During the report period, there did not exist the trademark ownership dispute, food quality issue orfood safety incident etc. that had a significant impact on the Company.

(3) Major sales mode

The Company’s main sales mode was the distribution mode, and main sales channel was offline sales,that is, the Company’s products were distributed to sales terminals through approximately 4,000distributors at home and abroad and ultimately provided to consumers.

① Situation of change in the number of distributors

② The Company and distributors took cash spot settlement, and mainly adopted buyout distributionmode.

Distribution

Direct sales

③ Procurement mode and procurement content

Unit：CNY’0000

(4) Major production mode

The production mode of the Company is self-produce.

3. Key accounting data and financial indicators

(1) Key accounting data and financial indicators in recent three years

Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscalyears.?Yes ?No

Unit: CNY

(2) Key accounting data by quarter

Unit: CNY

Whether there are significant differences between above-mentioned financial indicators or their sumand the related financial indicators in the quarterly report and semi-annual report disclosed by theCompany.

□Yes ?No

4. Capital stock and shareholders’ situation

(1) Number of ordinary shareholder and preferred shareholder recovering voting power, and situation of shares held by top ten shareholders

Unit: share

(2) Number 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.

(3) Introduction for property right and control relations between the Company and its actual controllers

5. Existing bond position on the submit date of annual report approval

□Available ?Not available

III. Important Matters

None

Yantai Changyu Pioneer Wine Co., Ltd.

Board of DirectorsApril 13, 2023