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Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportYantai Changyu Pioneer Wine Co., Ltd. August 21, 2026 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Table of Contents Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report I. Important Notice, Table of Contents and Definition The board of directors, directors and senior executives of the Company guarantee the truthfulness, accuracy and completeness of the contents contained in the semi-annual report with no false records, misleading statements or significant omissions, and undertake individual and joint legal liabilities. Mr. Hongjiang ZHOU (Person in charge of the Company) and Ms. Cuimei GUO (Person in charge of accounting work, Person in charge of accounting organ & Accountant in charge) assure the truthfulness, accuracy and completeness of the financial report in the semi-annual report. Except for the following directors, other directors attended this board meeting for reviewing this semi-annual report in person.Name of director not attending Position of director not attending Reason of not attending Name of entrustee the meeting personally the meeting personally the meeting personallyYan XU Independent Director On a business trip Zhuquan WANGMarco Giovanni Ferrari Director On a business trip Claudio Michele d"Agostino Forward-looking statements such as future plans and development strategies covered in this report do not constitute a substantial commitment of the Company to investors. Investors are advised to pay attention to investment risks. Regarding significant risks that the Company may face during the business process, please refer to “10. Risks and response measures” in “III Discussion and Analysis of Management Team” in this report. Investors are suggested to read carefully and pay attention to investment risks. The Company has no plan to distribute cash dividends and bonus shares and capital reserve will not be transferred to equity. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Reference Documents(1) The original of 2026 Semi-annual Report autographed by the Chairman.(2) The Financial Statements autographed and sealed by the Chairman, Chief Accountant andAccountants in Charge.(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectusand The Shares" Change & Public Offering Announcement for Stock A in 2000.(4) The originals of all documents and announcements that the Company made public duringthe report period in the newspapers designated by China Securities Regulatory Commission. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Definition Definition Item Refers to Definition ContentCompany/The Company Refers to Yantai Changyu Pioneer Wine Co., Ltd.Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co., Ltd.CSRC Refers to China Securities Regulatory CommissionSSE Refers to Shenzhen Stock ExchangeKPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)Deloitte Touche Tohmatsu CPA Refers to Deloitte Touche Tohmatsu Certified Public Accountants LLPCNY Refers to Chinese Yuan Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report II. Brief Introduction for the Company and Main Financial IndicatorsStock Abbreviation Changyu A, Changyu B Stock Code 000869，200869Stock Abbreviation after Alteration —Place of Stock Listing Shenzhen Stock ExchangeLegal Name in Chinese 烟台张裕葡萄酿酒股份有限公司Abbreviation of Chinese Name 张裕Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITEDAbbreviation of English Name CHANGYULegal Representative Hongjiang ZHOU Secretary of the Board of Directors Authorized Representative of Securities AffairsName Jianxun JIANG Tingguo LIAddress 56 Dama Road, Yantai, Shandong, China 56 Dama Road, Yantai, Shandong, ChinaTel. 0086-535-6602761 0086-535-6633656Fax. 0086-535-6633639 0086-535-6633639E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn Whether there is any change in the Company"s registered address, office address, corresponding postcode, website address and email address during the report period □Applicable Inapplicable There is no change in the Company"s registered address, office address, corresponding postcode, website address and email address during the report period. Please refer to 2025 Annual Report for detailed information. Whether there is any change in information disclosure and filing location during the report period □Applicable Inapplicable There is no change in the name of the newspaper for information disclosure, the address of the website designated by the China Securities Regulatory Commission for publishing the semi-annual report, and the filing location of the Company"s semi-annual report selected by the Company during the report period. Please refer to 2025 Annual Report for detailed information. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Whether there is any change in other relevant information during the report period □Applicable Inapplicable Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscal years. Yes No During the report In the same period More or less than the same Item period of last year period of last year (%)Operating revenue (CNY) 1,572,704,753 1,470,576,177 6.94%Net profit attributed to shareholders of the listedcompany (CNY)Net profit attributed to shareholders of the listedcompany after deducting non-recurring profits 132,958,779 172,159,827 -22.77%and losses (CNY)Net cash flows from operating activities (CNY) 418,235,893 239,421,128 74.69%Basic earnings per share (CNY/share) 0.21 0.28 -25%Diluted earnings per share (CNY/share) 0.21 0.28 -25%Weighted average return on equity 1.35% 1.73% -0.38% At the end of this At the end of last More or less than the end of Item report period year last year (%)Total assets (CNY) 11,883,028,631 12,050,601,981 -1.39%Net Assets attributed to shareholders of thelisted company (CNY) accounting standards both international accounting standards and PRC accounting standard □Applicable Inapplicable There are no differences for net profit and net assets in the financial report disclosed according to both international accounting standards and PRC accounting standards during the report period. both foreign accounting standards and PRC accounting standards □Applicable Inapplicable There are no differences of net profit and net asset in the financial report disclosed according to both foreign accounting standards and PRC accounting standards during the report period. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable Inapplicable Unit：CNY Item Amount ExplanationProfits and losses on disposal of non-current assets (including the write-off part of theprovision for asset impairment has been made)Government grants included in the current profits and losses(except for those recurringgovernment grants that are closely related to the entity"s operation, in line with related 8,354,311 -regulations and have proper basis of calculation)Other non-operating income and expenditure besides above-mentioned items 2,420,717 -Less: Amount affected by income tax 2,592,122 - Amount affected by minority equity (after tax) 664,846 -Total 7,557,026 - Specific situation of other gains and losses projects conforming to the definition of non-recurring profit and loss □Applicable Inapplicable There does not exist specific situation of other profit and loss items conforming to the definition of non-recurring profit and loss. Explanation for regarding the non-recurring profit and loss specified in the Explanatory Announcement on Public Company"s Information Disclosure No.1- Non-recurring Profit and Loss as recurrent profit and loss □Applicable Inapplicable There is no situation regarding the non-recurring profit and loss specified in the Explanatory Announcement on Public Company"s Information Disclosure No.1- Non-recurring Profit and Loss as recurrent profit and loss Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report III. Discussion and Analysis of Management Team During the report period, the Company"s main business was production and operation of wine and brandy. The Company need to comply with the disclosure requirements of “Food and Liquor Manufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information Disclosure Guideline No. 3 - Industry Information Disclosure. 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 fashionable alcoholic drinks. Compared with earlier stage, there were no significant changes happened to the Company"s main business. The wine industry that the Company involved in was still in growth stage. Being affected by many factors in recent years, the competition in domestic wine market was fierce. However, seen from the long term, the Company believes that the existing consumption concept might change with the increase of people"s income level and their pursuit 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 average consumption of domestic wine would gradually improve. The Company was at the forefront in the domestic wine market and was significantly ahead of major domestic competitors. Food Food production Producer name Obtaining time Obtaining method category license numberYantai Changyu Pioneer Wine Co., Approval from Alcohol 2021.06.01 SC11537060100050Ltd. government authorityBeijing Chateau Changyu AFIP Approval from Alcohol 2022.08.22 SC11511280920745Global Co., Ltd. government authorityLiaoning Changyu Golden Icewine Approval from Alcohol 2021.03.25 SC11521052200370Valley Co., Ltd. government authorityNingxia Changyu Longyu Estate Approval from Alcohol 2018.01.25 SC11564010500657Co., Ltd. government authorityXinjiang Chateau Changyu Baron Approval from Alcohol 2017.08.25 SC11565900100392Balboa Co., Ltd. government authorityYantai Chateau Changyu-Castel Alcohol 2021.06.08 Approval from SC11537063600172 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Co., Ltd. government authority Shaanxi Changyu Chateau Longue Approval from Alcohol 2020.10.19 SC11561040400532 Chanson Co., Ltd. government authority Yantai Chateau Koya Brandy Co., Approval from Alcohol 2021.01.11 SC11537063601165 Ltd. government authority During the report period, there did not exist the trademark ownership dispute, food quality issue or food safety incident etc. that had a significant impact on the Company. Brand operation The Company"s products were divided into two series: wine and brandy. For wine, main brands included Changyu, Longyu, Noble Dragon, AFIP, Kilikanoon, Golden Icewine Valley, Longue Chanson, Baron Balboa, Donelly, Long Tailed Cat, Commander Bear, Grappie, ATRIO, IWCC, Vermouth and so on. For Brandy, main brands included Koya, Liquan, Mminni, Pagese, Unicorn, Roullet Fransac and so on. 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 5000 distributors at home and abroad and ultimately provided to consumers. Distribution mode Applicable Inapplicable ① Situation of change in the number of distributors is shown as follows. At the beginning of Increased number during At the end of the Region the report period the report period report periodEastern China 2290 62 2352South China 581 4 585Central China 381 -8 373North China 323 -5 318Northwest China 157 -8 149Southwest China 420 3 423Northeast China 280 4 284HongKong, Macao,Taiwan China and overseas 796 110 906Total 5228 162 5390 ② Sales information of the Company’s top 5 distributors during the report period No. Customer name Sales amount (CNY） Proportion in total sales（%） Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportTotal -- 90,187,051 5.73% The ratio of sales in self-owned exclusive shop exceeds 10% □Applicable Inapplicable Sales of online direct sales Applicable Inapplicable First half of 2026 First half of 2025Sales model Operating income Operating cost Operating income Operating cost Gross margin Gross margin (CNY) (CNY) (CNY) (CNY)Distribution 1,270,312,869 529,242,951 58.34% 1,167,253,176 472,711,388 59.50%Direct sales 302,391,884 125,472,448 58.51% 303,323,001 120,094,870 60.41%Total 1,572,704,753 654,715,399 58.37% 1,470,576,177 592,806,258 59.69% The change in sales prices of major products accounting for more than 10% of total operating income in current report period exceeds 30% compared with those in last report period □Applicable Inapplicable Procurement mode and procurement content Unit: CNY Amount of major Procurement mode Procurement content procurement contents Qualitative and price comparison Raw materials including grape/bulk wine 239,130,438 Invitation for bids / qualitative and price comparison Packaging materials 171,578,245 Invitation for bids / qualitative and price comparison Brewing materials 11,353,639 Invitation for bids / qualitative and price comparison Goods and materials for vineyard 136,277 Contract Fuel and power 13,368,713 Qualitative and price comparison Other alcoholic products and derivatives 2,892,772 Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total procedure amount □Applicable Inapplicable The year-on-year change in the price of major outsourced raw materials exceeds 30% □Applicable Inapplicable Major production mode The production mode of the Company is self-produce. Commissioned processing and production □Applicable Inapplicable Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Major components of operating costs ① Classification of sector Unit: CNY First half of 2026 First half of 2025 Year-on-year Sector Project Proportion in the Proportion in the increase or Amount Amount operating cost (%) operating cost (%) decrease (%) Blending liquor 282,232,769 44.79% 267,451,974 46.89% 5.53% Packing material 174,235,825 27.65% 140,956,522 24.71% 23.61% Liquor Wages 22,012,122 3.49% 15,526,190 2.72% 41.77% andalcoholic Manufacturingbeverage expenses Contract performance costs ② Classification of product Unit: CNY First half of 2026 First half of 2025 Year-on-yearProduct Project Proportion in the Proportion in the increase or Amount Amount operating cost (%) operating cost (%) decrease (%) Blending liquor 207,481,662 46.00% 189,873,882 46.52% 9.27% Packing material 122,251,181 27.10% 100,999,372 24.75% 21.04% Wages 16,830,327 3.73% 11,392,118 2.79% 47.74% Wine Manufacturing expenses Contract performance costs Blending liquor 74,751,107 41.74% 77,578,092 47.81% -3.64% Packing material 51,984,645 29.03% 39,957,149 24.62% 30.10% Wages 5,181,795 2.89% 4,134,072 2.55% 25.34%Brandy Manufacturing expenses Contract performance costs Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Yield and inventory Year-on-year increase or Sector/Product Item Unit First half of 2026 First half of 2025 decrease (%) Sales Ton 35,627 33,812 5.37%Liquor and Yield Ton 29,164 27,411 6.39%alcoholic beverage Inventory Ton 19,498 20,451 -4.66% Sales Ton 23,965 23,336 2.70%Wine Yield Ton 20,409 20,525 -0.56% Inventory Ton 13,474 13,610 -1.00% Sales Ton 11,662 10,476 11.32%Brandy Yield Ton 8,754 6,886 27.12% Inventory Ton 6,023 6,841 -11.95% Compared with the participants in the arena of the Chinese wine competition sector, the Company owns following advantages: Firstly, the Company has a large brand influence. Main brands used have a long history. “Changyu”,“Noble Dragon”and“AFIP”are all “China famous brands” that have strong influence and good reputation. Secondly, the Company has set up a nationwide marketing network. The Company has formed a “three-level” marketing network system mainly composed of the Company"s salesmen and distributors and the online sales platform has had a certain scale and strong influence, owing strong marketing ability and market exploitation ability. Thirdly, the Company has strong scientific prowess and a product R&D system. Relying on the country"s “State-level Wine R&D Center”, the Company has owned powerful winemaker team, mastered advanced winemaking technology and production processes and had strong product innovation capacity and perfect quality control system. Fourthly, the Company is in possession of a lot of grape-growing bases that are compatible with its development requirements. The Company has developed a great deal of vineyards in the most suitable areas for wine grape growing such as Shandong, Ningxia and Xinjiang, and its subsidiary overseas enterprises also own matching grape bases in local area, making the overall scale and structure generally meet the Company"s needs for future development. Fifthly, products in high, medium and low-grade as well as varieties and categories are all complete. Over 100 varieties of series products such as wine, brandy and sparkling wine covers various grades, including high, medium and low-grade, which can meet different Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportconsumer groups" demands. The Company has taken the dominant status in the domestic wineindustry after many years" development and has comparative advantages in the futurecompetition.Sixthly, the Company has a relatively perfect motivation system. Most of Company"semployees indirectly hold the Company"s equity through controlling shareholders. There arehigh consistency between employee benefits and shareholders benefits, in favor of motivatingemployees to create value for shareholders.Seventhly, the Company has set up flexible and efficient decision-making mechanism. TheCompany"s core management team always maintains a working style of unity and pragmaticand flexible and efficient decision-making mechanism, which makes the Company can dealwith market changes more calmly.Eighthly, the global production capacity layout has been basically completed. The Companyhas completed production capacity layout in China, France, Chile, Spain, Australia and othermajor wine producing countries in the world, enabling making better use of globalhigh-quality raw material resources, capital, talents and advanced production processes andtechnologies to provide consumers with diversified quality products and better serveconsumers.Based on the above reasons, the Company has formed relatively strong core competence andwill maintain a relatively dominant position in the future predictable market competition.SummarizationDuring the report period, the domestic wine market still maintained a downward trend.Market demand was seriously insufficient, and competition was extremely fierce. Theprofitability of wine enterprises further declined. The market share of wine in alcoholicproducts became smaller and smaller. Coupled with the squeeze from other advantageouswine types, the development trend of the industry remained at a low level and there were noobvious signs of a rebound. Facing a severe market environment, the Company adhered to aconsumer-oriented approach, intensified marketing reforms, strictly controlled variousexpenses, actively engaged in product and marketing innovation, and strove to explore newsales channels and emerging markets, achieving certain results.First, adhere to a consumer-oriented approach, actively guide and cultivate the wineconsumption population, create wine consumption scenarios, and strive to expand the winemarket scale. During the reporting period, the Company significantly adjusted and improvedthe sales division system, deepened the “marketing” and “sales” separation reform, shortenedthe distance between the Company and consumers, laying a solid foundation for betterserving consumers; further focused on products, markets and marketing actions, based ondifferent market development stages, implement targeted marketing strategies. Some Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report“decisive battle” markets and innovative products such as Long Tailed Cat have achievedbreakthrough progress. The sales revenue of key products has steadily increased. Initiating orleveraging marketing events such as Yun Lin"s endorsement for Long Tailed Cat, Macron"spraise for Changyu Longyu, Wulaa"s “Yantai"s sea wind has alcohol”, Minhong Yu"s visit toChangyu, Shi Yu becoming the new spokesperson for Changyu"s classic brand, Trump"sspecial occasion of drinking Changyu AFIP, and Putin"s 13 visits to China all drinkingChangyu AFIP, and have further enhanced the brand"s popularity and reputation.Second, closely followed the consumption trends, accelerated the speed of market response,continuously improved product quality and developed new products, effectively meeting thedemands of consumers. During the reporting period, the overall quality of our productssteadily improved, and the speed of responding to consumers" needs further accelerated; inaccordance with the new consumption environment, we strengthened the marketingpromotion of innovative products such as “Long Tailed Cat” and “Commander Bear”,achieving remarkable results; by fully leveraging celebrity fans, carried out interactivecommunication and marketing for new product launches online, which stimulated productsales.Third, the “going out work” of tourism business has been steadily promoted, the touristreception volume and tourism income have achieved double growth year on year, and thesatisfaction of tourists has been greatly improved, which has not only better empowered thebrand of Changyu, but also achieved considerable economic benefits.Fourth, strengthen financial management and audit supervision, prevent operational risks, andenhance operational efficiency. During the reporting period, the Company proposed the“automatic collection, fixed retention, and linked payment” fund pool strategy, promoted thesettlement of internal unit debts, and improved the safety and utilization efficiency of funds;reasonably combined various diversified financial management tools such as time deposits,structured deposits, and agreed deposits, increasing the fund income; effectively handledspecial tasks such as personal income tax research, goods and labor tax investigation, taxsource sorting of real estate, and tax deduction for fund dividends research, avoiding andpreventing tax-related risks; by leveraging information tools such as “Every Moment” and“Collaborative Office”, further standardized capital expenditure project management;persistently conducted regular audits such as manager departure audits and economicefficiency audits, strengthened key expense audits such as advertising expenses of businessdivisions, and improved the level of audit supervision, reducing operational risks.Fifth, the Company continued to implement B-share repurchases to protect the interests ofinvestors. As of July 28, 2026, the Company had cumulatively repurchased 13,960,000domestic listed foreign capital shares (B shares) through the dedicated securities account forshare repurchase by means of centralized bidding, accounting for 6.9991% of the Company"sB shares and 2.1240% of the Company"s current total share capital. The highest transactionprice for this repurchase was HKD 8.43 per share, while the lowest was HKD 7.99 per share.The total amount of funds paid for the repurchase was HKD115,634,831.36 (includingtransaction fees). Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Based on the implementation of above measures, the Company achieved certain results in the first half of 2026 with a slight increase in revenue compared to the previous year; however, the net profit had a year-on-year decline, and the Company faces significant pressure and great uncertainty in fully achieving the financial budget targets for the year 2026. To achieve the business goals, the Company will focus on the following tasks in the second half of 2026: First, guided by the “adhere to the right path while innovating” strategy, the Company will comprehensively and deeply implement the separation of “marketing” and “sales”, get closer to consumers, adhere to the consumer--oriented approach, continuously improve products and services, and promote the steady and healthy development of all wine varieties. Second, accelerate the training and recruitment of talents, and build a backbone team capable of handling tough tasks. The Company will focus on large-scale recruitment of outstanding talents with experience in the fast-moving consumer goods industry, expertise in marketing, brand promotion, digitalization, and AI application, fully stimulating the “catfish effect”, and enhancing the execution and combat effectiveness of the management team. Third, increase the development and promotion of new products, strengthen product quality and cost management, and continuously enhance product competitiveness. After conducting in-depth and detailed research on the target population and consumption scenarios, the Company will introduce de-alcohol wine and herbal wine in a timely manner; in response to the current market trend of the low-alcohol trendy wine growing rapidly, follow the market trend, fully utilize the global procurement model and the rich and high-quality fruit resources in Yantai, combine technological innovation, and turn low-alcohol trendy wine into a star product with advantages in cost and quality, which is highly favored by Chinese people. Fourth, improve financial accounting, strengthen fund management, and strive to achieve the goal of cost reduction and efficiency improvement. The Company will coordinate various resources to complete the bank account bank-enterprise direct connection, the sorting of bill direct connection information, connection, complete the upgrade and transformation of each instant reimbursement system and SAP system, and the connection with the treasury system, steadily promote the launch and implementation of the treasury project; promote the official launch of the SAP system of the tourism system; do a good job in the data sorting, process promotion and assessment of the cost reduction and efficiency improvement projects, and ensure the complete achievement of the cost reduction and efficiency improvement goal. Fifth, complete the work of repurchasing and canceling a portion of the restricted shares for the third period of lifting restriction involved in the Company"s 2023 restricted share incentive plan. Year-on-year change in key financial data Unit: CNY The same period Year-on-year This period Cause of significant changes of last year increase or decrease Mainly due to the increase in product salesOperating revenue 1,572,704,753 1,470,576,177 6.94% volume Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Mainly due to the adjustment of productOperating cost 654,715,399 592,806,258 10.44% varieties Mainly due to the increase in marketingSales expense 458,709,936 402,150,816 14.06% expenses Mainly due to the decline in depreciationManagement expense 121,375,686 126,647,959 -4.16% expensesFinancial expense 11,470,668 -14,647,932 InapplicableMainly due to the increase in exchange lossIncome tax expense 68,901,273 81,765,775 -15.73%Mainly due to the decline in operating profit Mainly due to the increase in research andR&D expense 9,923,137 9,071,966 9.38% development expensesNet cash flow generated in Mainly due to the decrease in cash used foroperating activities purchasing goods and paying for servicesNet cash flow generated in Mainly due to the decrease in cash flows -34,870,771 92,905,302 -137.53%investment activities from the disposal of fixed assetsNet cash flow generated in Mainly due to the dividends distribution and -203,934,105 -272,782,891 25.24%financing activities decline in profitsNet increased amount of Mainly due to the increase in net cash flowcash and cash equivalents from operating activities Significant change in the profit form and profit source of the Company during the report period □Applicable Inapplicable There is no significant change in the profit form and profit source of the Company during the report period. Composition of operating revenue Unit: CNY This report period The same period of last year Year-on-year Proportion in Proportion in increase or Amount Amount operating revenue operating revenue decrease (%)Total operating revenue 1,572,704,753 100% 1,470,576,177 100% 6.94%Sector-classifiedSector of liquor andalcoholic beverageProduct-classifiedWine 1,047,878,619 66.63% 1,017,390,566 69.18% 3%Brandy 451,447,014 28.71% 388,044,327 26.39% 16.34% Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportTourism 56,362,523 3.58% 47,631,132 3.24% 18.33%Others 17,016,597 1.08% 17,510,152 1.19% -2.82%Area-classifiedDomestic 1,319,443,801 83.90% 1,213,721,087 82.53% 8.71%Overseas 253,260,952 16.10% 256,855,090 17.47% -1.40% The cases of industry, product or area accounting for over 10% in the Company"s operating revenue or operating profit Applicable Inapplicable Unit: CNY Year-on-year Year-on-year Year-on-year Operating Operating Gross increase or increase or increase or revenue cost margin decrease (%) of decrease (%) of decrease (%) of operating revenue operating cost gross margin Sector-classified Sector of liquor and alcoholic beverage Product-classified Wine 1,047,878,619 451,055,597 56.96% 3.00% 10.52% -2.93% Brandy 451,447,014 179,102,654 60.33% 16.34% 10.37% 2.14% Tourism 56,362,523 15,791,898 71.98% 18.33% 21.05% -0.63% Others 17,016,597 8,765,250 48.49% -2.82% -6.31% 1.92% Area-classified Domestic 1,319,443,801 495,097,216 62.48% 8.71% 15.14% -2.10% Abroad 253,260,952 159,618,183 36.97% -1.40% -1.97% 0.36% Under the condition that the statistical caliber of the Company"s main business data is adjusted during the report period, the Company"s main business data adjusted on the basis of caliber at the end of report period in recent one period. Available Not available The Company need to comply with the disclosure requirements of “Food and Liquor Manufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information Disclosure Guideline No. 3 - Industry Information Disclosure. The same period Proportion of Proportion of Year-on-year Items This period of last year this period last period increase or decrease Labor cost 126,706,728 119,403,300 27.62% 29.69% 6.12% Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportMarketing expenses 165,264,594 130,423,949 36.03% 32.43% 26.71%Cost of services 17,428,750 15,252,966 3.80% 3.79% 14.26%Depreciation expense 31,272,848 30,786,813 6.82% 7.66% 1.58%Storage rental fee 11,813,394 11,354,031 2.58% 2.82% 4.05%Advertising expenses 37,780,989 29,798,339 8.24% 7.41% 26.79%Trademark usage fee 6,470,914 5,451,141 1.41% 1.36% 18.71%Travel expenses 13,046,687 12,906,974 2.84% 3.21% 1.08%Design and production fee 5,937,874 4,921,771 1.29% 1.22% 20.65%Conference fee 3,467,275 3,000,702 0.76% 0.75% 15.55%Water, electricity and gas charges 5,352,813 5,414,402 1.17% 1.35% -1.14%Others 34,167,070 33,436,428 7.45% 8.31% 2.19%Total 458,709,936 402,150,816 100% 100.00% 14.06% □Applicable Inapplicable Unit: CNY At the end of this report period At the end of last year Proportion Explanation on Item Proportion in the Proportion in the increase or significant Amount Amount total assets (%) total assets (%) decrease (%) changes No significant Monetary funds 2,083,218,301 17.53% 1,890,611,804 15.69% 1.84% changes No significant Account receivables 163,572,526 1.38% 264,932,724 2.20% -0.82% changes No significant Contract assets 0 0% 0 0% 0% changes No significant Inventory 2,793,700,741 23.51% 2,836,077,209 23.53% -0.02% changes No significant Investment real estate 18,773,534 0.16% 19,900,228 0.17% -0.01% changes Long-term equity No significant investments changes No significant Fixed assets 5,183,660,371 43.62% 5,308,778,632 44.05% -0.43% changes No significant Construction in progress 6,350,167 0.05% 4,313,088 0.04% 0.01% changes No significant Right-of-use asset 88,248,378 0.74% 55,252,509 0.46% 0.28% changes No significant Short-term borrowings 244,352,064 2.06% 240,674,788 2% 0.06% changes Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report No significantContract liability 115,718,391 0.97% 135,067,463 1.12% -0.15% changes No significantLong-term borrowings 44,628,112 0.38% 52,374,840 0.43% -0.05% changes No significantLease liability 47,387,670 0.40% 19,437,830 0.16% 0.24% changes Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable Inapplicable Unit：CNY Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are Details of assets Assets scale Location reasons mode asset security condition in the Company"s net assets significant impairment risks The Company participates in making importantHacienda Y Vinedos Acquisition of IndependentMarques Del Atrio. SL equity operation appoints CFO on financial management. EstablishmentIndomita Wine Independent The Company participates in making important of joint 515,819,594 Chile -4,083,170 4.95% NoCompany Chile, S.p.A. operation decisions through Board of Directors. ventureKilikanoon Estate Pty., Acquisition of Independent The Company participates in making importantLtd. equity operation decisions through Board of Directors. Sole The Company participates in making importantFrancs Champs Independent proprietorship 193,503,440 France decisions through directly appointing senior -3,474,192 1.86% NoParticipations SAS operation establishment executive.Other information explanation None □Applicable Inapplicable Please refer to the “Notes to the Consolidated Financial Statements” in the financial report of this report, specifically the “Assets with restricted ownership or use rights”. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable Inapplicable Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation □Applicable Inapplicable Applicable Inapplicable Unit: CNY Accumulated Accumulated Reasons for Whether Involved Investment actual realized unreached belongs to Investme sectors of amount during investment Capital Project Estimated earnings up planning Disclos Project name fixed Disclosure index (if have) nt mode investment the report amount up to the source progress earnings to the end of schedule and ure date assets projects period end of the report the report estimated investment period period earningsYantai Changyu Please refer to ResolutionInternational Self-cons Owned 2017.04 Announcement of Seventh SessionWine City Yes 0 1,705,784,100 100.00% 0 0 - tructed fund .22 Board of Directors 4th Meeting,Blending and Liquor and Resolution Announcement ofCooling Center alcoholic Seventh Session Board ofYantai Changyu beverage Directors 8th Meeting, ResolutionInternational Self-cons sector Owned 2017.04 Announcement of Seventh Session Yes 1,500,000 1,138,020,000 100.00% 0 0 -Wine City tructed fund .22 Board of Directors 10th Meeting,Bottling Center Resolution Announcement ofOak Barrel Self-cons Yes 10,006,247 247,527,147 Owned 98.00% 0 0 - 2021.04 Eighth Session Board of Directors Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportProcurement tructed fund .28 4th Meeting, ResolutionProject Announcement of Eighth Session Board of Directors 11th Meeting, Resolution Announcement of Ninth Session Board of DirectorsProjects of Yantai Announcement of Ninth Sessionlocal companies Board of Directors 9th Meeting, Self-cons Owned 2025.04and chateaux Yes 5,450,600 11,183,600 75.00% 0 0 - Resolution Announcement of tructed fund .18placed other than Ninth Session Board of DirectorsYantai 11th Meeting and Resolution Announcement of Tenth Session Board of Directors 5th Meeting disclosed on CNINFO (http://www.cninfo.com.cn/)Total -- -- -- 16,956,847 3,102,514,847 -- -- 0 0 -- -- -- ① Security investment situation □Applicable Inapplicable There are no security investments for the Company during the report period. ② Derivatives investment □Applicable Inapplicable There are no derivatives investments for the Company during the report period. □Applicable Inapplicable There are no usage situations of raised capital for the Company during the report period. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable Inapplicable There are no sale of significant assets for the Company during the report period. Applicable Inapplicable Applicable Inapplicable Situation of main subsidiaries and joint stock companies affecting over 10% of the Company"s net profit Unit: CNY Company name Company type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profitYantai Changyu Pioneer Wine Sales Sales of alcoholic Subsidiary CNY8million 593,797,739 14,703,921 1,034,589,646 103,864,535 84,330,874Co., Ltd. productsYantai Changyu Wine Sales Co., Sales of alcoholic Subsidiary CNY5million 89,504,019 79,114,571 337,933,233 57,372,596 43,020,282Ltd. productsChangyu Trading Co., Ltd. in Sales of alcoholic Subsidiary CNY5million 97,300,034 15,151,797 49,828,680 6,676,628 4,998,721Development Zone of Yantai productsLaizhou Changyu Wine Sales Co., Sales of alcoholic Subsidiary CNY1million 39,351,180 1,087,342 121,891,996 6,343,136 4,757,427Ltd. products Acquisition and disposal of subsidiaries during the report period □Applicable Inapplicable Explanation on main holding and joint stock companies None Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report□Applicable InapplicableGrapes are the Company"s main raw materials. The grape"s yield and quality are affected to acertain extent by the natural factors such as drought, wind, rain, frost and snow. These forcemajeure factors greatly influence the quantity and price of the grapes in this Company ordersand add the uncertainty to the Company"s production and operation. Therefore, the Companywill lower the risks that are likely to affect grape quality and result in price fluctuation bymeans of expanding the self-run vineyards, strengthening the vineyard management andoptimizing the layout of vineyards.To cope with the cutthroat market competition and to meet the needs for market development,the Company has input more and more capital in the market and the sales expense has takenup a higher percentage point in the business revenue. The input-output ratio will affect theCompany"s operating results to a great extent and the risk that some investments may notreach the expectations is likely to occur. Therefore, the Company will strengthen marketresearch and analysis, enhance market forecast accuracy and continue to perfect theinput-output evaluation system to ensure the investments in market to be satisfactory asexpected.The Company"s products are fragile and sent to different places all over the world, mostly bysea, railway and expressway. The peak season of sales is usually in cold winter and close tothe spring festival when market has a great demand. At that time, the natural and humanfactors such as serious shortage of transport capacity resulting from busy flow of people andgoods, wind, snow, freezing as well as traffic accidents make the transport departmentsdifficult to send products to markets in time and safely. As a result, it makes this Companyhave to face the risks of missing the peak season of sales. Therefore, the Company will adoptall methods possible like making precise sales prediction and well designed connection ofproduction and sales, reasonably arranging production and transport means and making use ofmore available warehouses in different places to lower these kinds of risks.The Company invested many projects in the previous periods and the investment amountswere relatively large. For individual project, owing to the influence of various factors, it led tohave the risks of facing with the investment amount out of budget or hardly taking back theexpected investment earnings. The Company will take an adequate argument and scientificdecision-making for investment projects, try hard to reduce and avoid investment risks.The Company"s overseas subsidiaries export products to many different countries and theexport amount is relatively large. There may be exchange losses or gains due to exchange ratefluctuation.During the production and sales of the Company"s products, it may be affected by forcemajeure such as wars, typhoons, earthquakes, etc..and implementationWhether the company has established a market value management systemYes No Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportThe company has formulated a Market Value Management System, which mainly covers thepurposes and basic principles of market value management, the structure and responsibilitiesof market value management, the main methods of market value management, the monitoringand early warning mechanism, and the emergency measures. This has further standardizedand improved the behavior of market value management.Whether the company has disclosed a valuation enhancement plan□Yes NoWhether the company disclosed the “The Improvement Both on Quality and Return” actionplan□Yes No Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report IV. Corporate Governance, Environmental and Social Responsibility Applicable Inapplicable Name Position held Type Date Reason General manager Terminate the Zhenbo XIAO 2026.03.09 Personal reason assistant appointment during the report period □Applicable Inapplicable The Company plans not to distribute cash dividends or give bonus shares or make capitalization of capital reserve into share capital. plan or other employee incentive measures Applicable Inapplicable In 2023, the Company implemented the restricted share incentive plan for 203 middle-level managers and core cadres and granted them 6,785,559 shares of restricted share. On July 24, 2026, the Company"s Fifth Interim Board of Directors Meeting in 2026 deliberated and approved the Proposal on Failure to Achieve Conditions for Lifting Restrictions in the Third Period of Lifting Restriction Involved in the Company"s 2023 Restricted Share Incentive Plan and Proposal on Buy-back and Cancelling Some Restricted Shares of the Company"s 2023 Restricted Share Incentive Plan and to Adjust the Buy-back Price. The conditions for lifting restrictions in the third restriction-lifted period of restricted shares granted under the Company"s Incentive Plan have not been met, and the number of restricted shares granted to the Company"s 179 incentive subjects that needs to be bought back and cancelled amounts to 2,485,626 shares. Available Not available Available Not available Whether the listed company and its major subsidiaries are included in the list of enterprises that disclose environmental information in accordance with the law Yes NoThe number of enterprises included in the list of enterprises legally disclosing environmental information 1 Query index for the report on the legal disclosure ofNo. Company Name environmental information Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportfarmer” or “company + cooperative + farmer”, reformed the sloping fields of JiaodongPeninsular and the northwestern area including Ningxia and Xinjiang and so on, theuncultivated land or the barren land into graperies. By means of providing capital andtechnology of viticulture to fruit growers, scientific management level of vineyard had beenimproved. The Company spared no effort to popularize the non-pollution and mechanizedplanting methods, continuously improved production efficiency of grape base and quality ofgrape, and reduced production cost of grape and labor intensity. Through the above measures,on the one hand, it promotes the effective use of land resources, promotes the organicintegration of rural households and modern agriculture, and helps increase agriculturalefficiency, farmers" incomes and rural development; on the other hand, it improves the localecological environment and brings huge ecological benefits.an old revolutionary base area by purchasing local agricultural products to help solve theproblem of slow sales.employees with poor families, as well as the Company"s in-service or retired employees withchronic or serious illnesses. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report V. Major issuesacquirers and the Company and other related commitment parties have implementedduring the report period and have not implemented up to the end of the report period□Applicable InapplicableThere is no commitments that the Company"s actual controllers, shareholders, related parties,acquirers and the Company and other related commitment parties have implemented duringthe report period and have not implemented up to the end of the report periodand its related parties□Applicable InapplicableThere is no non-operational occupation capital of the listed company by controllingshareholder and its related parties during the report period.□Applicable InapplicableThere is no illegal guarantee situation during the report period.Whether the semi-annual report has been auditedYes NoThe semi-annual report has not been audited.during this report period□Applicable Inapplicablelast year□Applicable Inapplicable□Applicable InapplicableThere are no related issues of bankruptcy reorganization happened at the end of the reportperiod.Material litigation and arbitration□Applicable InapplicableThere are no material litigation and arbitration during the report period.Other Litigation Issue□Applicable Inapplicable Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report □Applicable Inapplicable There is no penalty and rectification during the report period. □Applicable Inapplicable Applicable □Inapplicable Proportion Approved Whether Available Amount accounting for exceed Related Relationsh Pricing transaction Clearin market price Disclosu Type Content Price (CNY amount of approved Disclosure index party ip principle quota (CNY g form of similar re date ‘0000) similar transaction ‘0000) transactions transactions quota Expected Announcement on Purchase Yantai Controlled 2026 Annual Routine Purchase andShenma by the Determine Related Transaction and commission Agreemen 2026.02.Packagin same d by 2,326 13.35% 6,600 No Cash No disclosed in China commission processing t pricing 12 g Co., parent agreement Securities processing packaging Ltd. company Journal,SecuritiesTim materials esand CNINFO in February 12, 2026Total -- -- 2,326 -- 6,600 -- -- -- -- --Details of the return of large sales NoActual performance of the estimated total amount fordaily operations related transactions by category that Nowill occur during this period.Reason for the deference between transaction price Inapplicableand market reference price Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report □Applicable Inapplicable There are no related transactions in relation to acquisition or sales of assets or equity during the report period. □Applicable Inapplicable There are no related transactions in relation to common foreign investment during the report period. Applicable □Inapplicable Whether or not existing non-operating related credit and debt transactions □Yes No There is no non-operating related credit and debt transactions during the report period. □Applicable Inapplicable There is no deposit, loan, credit granting or other financial business between the related financial companies and related parties. □Applicable Inapplicable There is no deposit, loan, credit granting or other financial business between the financial companies controlled by the Company and related parties. Applicable □Inapplicable For other major related transactions, please refer to the Announcement of 2026 Annual Expected Routine Related Transaction and the Section XI “ Related Parties and Related Transaction” of the Financial Report of this report. Disclosure website of interim report for major related transaction Disclosure date of interim Name of disclosure website Name of interim announcement announcement for interim announcementAnnouncement of 2026 Annual Expected 2026.02.12 CNINFO (www.cninfo.com.cn)Routine Related Transaction ① Trusteeship situation □Applicable Inapplicable There is no trusteeship situation during the report period. ② Contracting situation □Applicable Inapplicable There is no such contracting situation during the report period. ③ Lease situation Applicable □Inapplicable Explanation for lease situation On January 1, 2022, the Company renewed the Space Lease Agreement with the controlling Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportshareholder Yantai Changyu Group Company Limited. The Company leased the space withrent per year is CNY1.4645million with a rental period of 5 years from January 1, 2022 toDecember 31, 2026.On January 1, 2022, the Company"s subordinate Sales & Marketing Co. of Yantai ChangyuPioneer Wine Company Limited Brandy Sales Division renewed the Space Lease Agreementwith the controlling shareholder Yantai Changyu Group Company Limited, leasing the spacewith 42,552.83 square meters locating at No. 1 Jichang Road, Zhifu District, Yantai City andthe space with 3,038 square meters locating at 56 Dama Road, Zhifu District, Yantai City,which are all under the name of controlling shareholder. The rent of above spaces per year isCNY4.3935million with a rental period of 5 years from January 1, 2022 to December 31,In 2023, this Company signed a house-leasing contract with Yantai Shenma PackagingCompany Limited. According to this contract, since July 1, 2023, this Company leasedproperty to Yantai Shenma Packaging Company Limited for a business purpose with theannual rent of CNY1,626,880. This contract expires on June 30, 2028.Project whose profit and loss brought for the Company reach more than 10% of the totalprofit during the report periodApplicable InapplicableThere are no lease projects whose profit and loss brought for the Company reach more than Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable □Inapplicable Unit: CNY"0000 External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries） Disclosure date of Countergua Actual date of Whether or not Whether or not belong related Guarantee Actual guarantee Guarantee Collateral rantee Guarantee object name occurrence (date of Guarantee Period complete to related-party announcement about quota amount type (if have) situation (if agreement) implementation guarantee guarantee quota have) —— Guarantee situations between the Company and subsidiaries Disclosure date of Countergua Whether or not Whether or not belong related Guarantee Actual date of Actual guarantee Guarantee Guarantee object name Collateral rantee Guarantee Period complete to related-party announcement about quota occurrence amount type situation implementation guarantee guarantee quota Effective as of the date this Agreement is signed and will Joint liabilityKilikanoon Estate Pty Ltd 2025.10.25 7,000 2023.09.01 7,000 - - remain in effect as No Yes assurance long as the guarantor remains in business with East West Bank Three years fromHacienda Y Vinedos Joint liabilityMarques Del Atrio. SL assurance performance Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report period of the debtor"s debt under the principal creditor-debtor contract expires.Total of the guarantee quota approved to Total of the actual guarantee amount for subsidiaries duringsubsidiaries during the report period (B1) the report period (B2)Total of the guarantee quota approved to Balance of the actual guarantee for subsidiaries by the endsubsidiaries by the end of the report period (B3) of the report period (B4) Guarantee situations between subsidiaries Countergu Whether or not Disclosure date of Actual date of Actual Whether or not Guarantee Collateral arantee belong to Guarantee object name related announcement occurrence (date of guarantee Guarantee type Guarantee Period complete quota (if have) situation related-party about guarantee quota agreement) amount implementation (if have) guarantee Total guarantee amount of the Company（Total of above three major items）Total of the approved guarantee quota during the Total of the actual guarantee amount during the reportreport period（A1+B1+C1） period（A2+B2+C2）Total of the approved guarantee quota by the end Balance of the actual guarantee by the end of the reportof the report period（A3+B3+C3） period（A4+B4+C4）The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company"s net asset 2.05%Among :The amount of guarantee for shareholders, actual controllers and their related parties（D） 0The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70% directly or indirectly（E） 0Total amount of guarantee of the part that exceeds 50% of net assets（F） 0 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Total amount of the above-mentioned three items（D+E+F） 0 Explanation for undue guarantees that have happened warranty liability or may take joint payback liabilities during the report period (if have) No Explanation for violating due process to provide external guarantee (if have) No Explanation on specific situations of adapting guarantee by complex methods None Applicable Inapplicable There is no financial management entrustment during the report period. Applicable Inapplicable There are no other important contracts during the report period. Applicable □InapplicableReception Type of reception Main discussed contents and Reception place Reception pattern Reception object Basic situation index of reception time object provided data Investor Relations Network Institutions, individuals The recent production and operation The Record of Investor-relations Activity and others situation of the Company disclosed on Shenzhen Stock Exchange (https://ir.p5w.net) communication The Company"s Institutions, individuals All investors attending the on-site The recent production and operation The Record of Investor-relations Activity meeting room and others meeting of the Shareholders" Meeting situation of the Company disclosed on Shenzhen Stock Exchange Applicable Inapplicable There are no other major issues that need to be explained during the report period. Applicable Inapplicable Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report VI. Changes in Shares and Shareholders" Situation Unit: share Amount before this change Change (+, -) Amount after this change Percentage Distribute bonus Transfer other capital Percentage Amount Allot new share Others Subtotal Amount % share to share capital %I. Shares with trading limited condition 2,674,326 0.41% 56,675 56,675 2,731,001 0.42% Among which: domestic legal person domestic natural person 2,674,326 0.41% 56,675 56,675 2,731,001 0.42% Among which: foreign legal person foreign natural personII. Shares without trading limited condition 654,565,802 99.59% -56,675 -56,675 654,509,127 99.58%III. Total shares 657,240,128 100% 657,240,128 100% Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportCause of share changeApplicable InapplicableThe change in restricted shares is due to the variation in the number of shares locked up by seniorexecutives.Approval of share changeApplicable InapplicableTransfer ownership of changed sharesApplicable InapplicableImplementation progress of share buy-backApplicable InapplicableAs of July 28, 2026, the Company has bought back 13,960,000 B shares of the Company throughshare buy-back special securities account in a centralized bidding mode, accounting for 6.9991%of Company"s B shares and 2.1240% of Company"s current total share capital, with the highesttransaction price of HKD 8.43 per share and the lowest transaction price of HKD 7.99 per share.The total transaction amount was HKD 115,634,831.36 (including transaction fees) thatequivalent to CNY99,995,053.11, which is less than CNY100million.The shares being bought back are currently undergoing the transfer process. The actual number ofshares bought back falls within the range specified in the repurchase plan (i.e., the number ofbuy-back shares is no less than 10 million and no more than 15 million).Implementation progress of reducing holding buy-back share through the way of centralizedbiddingApplicable InapplicableThe influence of share change on the financial indicators such as basic earnings per share, dilutedearnings per share of the latest year and the latest period, net asset per share belonging to theCompany"s common shareholders, etc.Applicable InapplicableOther contents the Company thinks necessary or securities regulatory departments ask to makepublic.Applicable Inapplicable Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable Inapplicable Unit: share Number of restricted Number of restricted Number of restricted Number of restricted Date of lifting Shareholder name shares at the shares lifted during shares increased shares at the end of Reason for restricted sale restrictions beginning period this period during this period the period Released restricted shares but cannot be soldHongjiang ZHOU 41,700 18,000 59,700 — due to senior executive lock-in Released restricted shares but cannot be soldJian SUN 123,000 15,750 138,750 — due to senior executive lock-in Released restricted shares but cannot be soldJiming LI 8,000 12,000 20,000 — due to senior executive lock-in Released restricted shares but cannot be soldJianxun JIANG 8,000 12,000 20,000 — due to senior executive lock-in Released restricted shares but cannot be soldBin PENG 8,000 6,075 1,925 — due to senior executive lock-inJianfu PAN 0 0 — —Qingkun KONG 0 — —Shilu LIU 0 — — Released restricted shares but cannot be soldZhenbo XIAO 0 5,000 5,000 — due to senior executive lock-inHongbo SUN 0 — —Cuimei GUO 0 — —Other 179 individuals who are the recipients of theTotal 2,674,326 6,075 62,750 2,731,001 -- -- Applicable Inapplicable Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: share Total number of preferred shareholder recovering voting power by the end of report period (if have)Total shareholders in the report period 39,835 0 (see note 8) Shareholders holding more than 5% or the top 10 shareholders holding situation (exclude the lending of shares through the margin lending and securities lending system) Character of Percentage Shares held until the end Changes during the Number of Number of Pledged or frozen Name of Shareholders shareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount Domestic non-state legalYANTAI CHANGYU GROUP CO., LTD. 52.56% 345,473,856 0 0 345,473,856 Inapplicable 0 personFengdi JIANG Domestic natural person 0.67% 4,429,000 -106,834 0 4,429,000 Inapplicable 0Hairong HU Domestic natural person 0.54% 3,550,035 83,000 0 3,550,035 Inapplicable 0VANGUARD TOTAL INTERNATIONAL STOCK Foreign legal person 0.52% 3,446,137 -20,898 0 3,446,137 Inapplicable 0INDEX FUNDSocial Security Fund 114 Other 0.52% 3,425,055 0 0 3,425,055 Inapplicable 0VANGUARD EMERGING MARKETS STOCK Foreign legal person 0.47% 3,087,201 0 0 3,087,201 Inapplicable 0INDEX FUNDHONG KONG SECURITIES CLEARING Foreign legal person 0.46% 3,030,765 -67,692 0 3,030,765 Inapplicable 0COMPANY LIMITEDSocial Security Fund 413 Other 0.46% 3,000,060 0 0 3,000,060 Inapplicable 0NORGES BANK Foreign legal person 0.35% 2,333,030 0 0 2,333,030 Inapplicable 0Galaxy Jinhu Securities Asset Management - ChinaGreat Wall Asset Management Co., Ltd. - Galaxy Other 0.28% 1,847,841 1,847,841 0 1,847,841 Inapplicable 0Jinhu Quanxin Changying Selective Single AssetManagement PlanStrategic investors or legal result of the placement of new shares to become a Notop 10 shareholders Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant actionThe explanation for the associated relationship and accordant action relationship with the other 9 listed shareholders, while the relationship among the other shareholders is unknown.Explanation of the above-mentioned shareholders" entrustment/ fiduciary Novoting rights and waiver of the voting rightsSpecial explanation for the existence of a special repurchase account among On June 30, 2026, the special repurchase securities account of Yantai Changyu Pioneer Wine Co., Ltd. held 4,830,000 B sharesthe top 10 shareholders of the Company. The top 10 shareholders with shares without trading limited condition (exclude the lending of shares through the margin lending and securities lending system and senior executive lock-in) Name of Shareholders Number of shares without trading limited condition held until the end of the year Type of share Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Type of share AmountYANTAI CHANGYU GROUP CO., LTD. 345,473,856 A 345,473,856Fengdi JIANG 4,429,000 A 4,429,000Hairong HU 3,550,035 A 3,550,035VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3,446,137 B 3,446,137Social Security Fund 114 3,425,055 A 3,425,055VANGUARD EMERGING MARKETS STOCK INDEX FUND 3,087,201 B 3,087,201HONG KONG SECURITIES CLEARING COMPANY LIMITED 3,030,765 A 3,030,765Social Security Fund 413 3,000,060 A 3,000,060NORGES BANK 2,333,030 B 2,333,030Galaxy Jinhu Securities Asset Management - China Great Wall AssetManagement Co., Ltd. - Galaxy Jinhu Quanxin Changying Selective Single 1,847,841 B 1,847,841Asset Management PlanThe explanation for the associated relationship and accordant action of the topaccordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders, and the relationship among the other shareholders is unknown.the top 10 shareholdersExplanation for the top 10 shareholders who involved in financing activities Noand stock trading business Shareholders holding more than 5%, the top 10 shareholders and the top 10 shareholders with unrestricted tradable shares participate in the lending of shares involved in the refinancing business Applicable Inapplicable The top 10 shareholders and the top 10 shareholders with unrestricted tradable shares have changed from the previous period due to refinancing lending/restitution reasons Applicable Inapplicable Whether or not the Company"s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the report period Yes No There is no agreed repurchase transaction taken by the Company"s top 10 common shareholders and top 10 shareholders with unrestricted shares during the report period. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Applicable Inapplicable Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the Name Position Status beginning period current period the current period period beginning period current period end period (shares) (shares) (shares) (shares) (shares) (shares) (shares)ZHOU Chairman Incumbent 207,600 207,600 168,000 0 168,000Hongjiang Director andSUN Jian General Incumbent 297,000 297,000 147,000 0 147,000 Manager Director andLI Jiming Deputy General Incumbent 112,000 112,000 112,000 0 112,000 Manager Director, DeputyJIANG General Incumbent 112,000 112,000 112,000 0 112,000Jianxun Manager and Board Secretary Deputy GeneralPENG Bin Incumbent 87,900 87,900 87,900 0 87,900 Manager GeneralPAN Jianfu Manager Incumbent 40,000 40,000 40,000 0 40,000 Assistant GeneralKONG Manager Incumbent 45,000 45,000 45,000 0 45,000Qingkun Assistant GeneralLIU Shilu Manager Incumbent 40,000 40,000 40,000 0 40,000 AssistantXIAO General Outgoing 45,000 45,000 45,000 0 45,000Zhenbo Manager Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Assistant GeneralSUN Manager Incumbent 14,389 14,389 14,389 0 14,389Hongbo Assistant General ManagerGUO Assistant and the Incumbent 16,436 16,436 16,436 0 16,436Cuimei Person in Charge of Finance Total -- -- 1,017,325 0 0 1,017,325 827,725 0 827,725 The company has previously disclosed that the actual controller was planning to change the control rights but the process had not yet been completed. Please provide an update on the progress of the control rights change. Applicable Inapplicable Changes in the controlling shareholders during the report period Applicable Inapplicable There is no any change in the controlling shareholders during the report period. Changes in the actual controllers during the report period Applicable Inapplicable There is no any change in the actual controllers during the report period. Applicable Inapplicable There are no preferred shares during the report period. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report XII. Related Situation of BondsApplicable Inapplicable XIII. Financial ReportWhether the semi-annual report has been auditedYes NoThe company’s semi-annual report has not been audited.The unit in the statements of the financial notes is RMB Yuan.Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2026 Unit: yuan Item Note June 30, 2026 December 31, 2025Current assets: Monetary capital 7.1 2,083,218,301 1,890,611,804 Settlement reserves Lending funds Tradable financial assets Derivative financial assets Bills receivable 7.2 100,000 102,342 Accounts receivable 7.3 163,572,526 264,932,724 Accounts receivable financing 7.4 222,487,233 228,073,841 Advance payment 7.5 14,506,780 54,011,809 Premium receivable Reinsurance accounts receivable Receivable reserves for reinsurance contract Other receivables 7.6 113,246,526 127,713,309 Including: Interest receivable Dividends receivable Redemptory monetary capital for sale Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Note June 30, 2026 December 31, 2025 Inventories 7.7 2,793,700,741 2,836,077,209 Including: Data resource Contract assets Assets held for sale Non-current assets due within one year Other current assets 7.8 66,722,522 74,160,936Total current assets 5,457,554,629 5,475,683,974Non-current assets: Offering loans and imprest Debt investments Other debt investments Long-term receivables Long-term equity investments 7.9 23,357,099 26,656,197 Other investments in equity instruments Other non-current financial assets Investment real estate 7.10 18,773,534 19,900,228 Fixed assets 7.11 5,183,660,371 5,308,778,632 Construction in progress 7.12 6,350,167 4,313,088 Productive biological assets 7.13 57,081,603 60,098,714 Oil-and-gas assets Right-of-use assets 7.14 88,248,378 55,252,509 Intangible assets 7.15 505,262,835 512,930,637 Including: Data resource Development expenditure Including: Data resource Goodwill 7.16 88,036,557 88,036,557 Long-term deferred expenses 7.17 275,819,174 283,227,056 Deferred income tax assets 7.18 178,840,549 215,680,654 Other non-current assets 7.19 43,735 43,735Total non-current assets 6,425,474,002 6,574,918,007Total assets 11,883,028,631 12,050,601,981Current liabilities: Short-term borrowings 7.21 244,352,064 240,674,788 Borrowings from the Central Bank Borrowing funds Tradable financial liabilities Derivative financial liabilities Bills payable Accounts payable 7.22 313,132,902 321,932,168 Advances from customers Liabilities of contracts 7.23 115,718,391 135,067,463 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Note June 30, 2026 December 31, 2025 Financial assets sold for repurchase Deposits from customers and interbank Receivings from vicariously traded securities Receivings from vicariously sold securities Employee remunerations payable 7.24 128,744,727 162,525,617 Taxes and dues payable 7.25 129,984,754 158,558,934 Other payable 7.26 311,014,990 332,855,775 Including: Interest payable Dividends payable 7.26 388,355 Handling charges and commissions payable Dividend payable for reinsurance Liabilities held for sale Non-current liabilities due within one year 7.27 81,996,110 75,440,910 Other current liabilities 7.28 15,077,955 27,193,862Total current liabilities 1,340,021,893 1,454,249,517Non-current liabilities: Reserves for insurance contracts Long-term borrowings 7.29 44,628,112 52,374,840 Bonds payable Including: Preferred stock Perpetual bonds Lease liabilities 7.30 47,387,670 19,437,830 Long-term accounts payable Long-term employee remunerations payable Estimated liabilities Deferred income 7.31 15,793,091 19,386,932 Deferred income tax liabilities 7.18 6,296,958 6,613,894 Other non-current liabilitiesTotal non-current liabilities 114,105,831 97,813,496Total liabilities 1,454,127,724 1,552,063,013Owner"s equities: Capital stock 7.32 657,240,128 657,240,128 Other equity instruments Including: Preferred stock Perpetual bonds Capital reserves 7.33 364,048,502 364,048,502 Minus: Treasury stock 7.34 72,754,596 37,880,941 Other comprehensive income 7.35 -28,084,834 -16,329,710 Special reserves Surplus reserves 7.36 342,732,000 342,732,000 General risk preparation Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Note June 30, 2026 December 31, 2025 Undistributed profits 7.37 9,013,643,371 9,037,437,598Total owner"s equities attributable to the parent company 10,276,824,571 10,347,247,577 Minority equity 152,076,336 151,291,391Total owner"s equities 10,428,900,907 10,498,538,968Total liabilities and owner"s equities 11,883,028,631 12,050,601,981Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo CuimeiCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan Item Note June 30, 2026 December 31, 2025Current assets: Monetary capital 1,301,638,438 1,068,117,647 Tradable financial assets Derivative financial assets Bills receivable Accounts receivable 18.1 515,656 Accounts receivable financing 49,720,103 49,858,915 Advance payment 186,242 Other receivables 18.2 534,601,801 706,617,690 Including: Interest receivable Dividends receivable 3,495,195 20,000,000 Inventories 396,548,891 368,660,076 Including: Data resource Contract assets Assets held for sale Non-current assets due within one year Other current assets 13,654,075 1,761,013Total current assets 2,296,865,206 2,195,015,341Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 18.3 7,639,851,962 7,639,851,962 Other investments in equity instruments Other non-current financial assets Investment real estate 18,773,534 19,900,228 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Note June 30, 2026 December 31, 2025 Fixed assets 129,455,126 138,604,795 Construction in progress Productive biological assets 15,414,672 16,972,242 Oil-and-gas assets Right-of-use assets 5,319,288 6,638,093 Intangible assets 65,687,592 67,060,514 Including: Data resource Development expenditure Including: Data resource Goodwill Long-term deferred expenses Deferred income tax assets 2,323,687 3,339,186 Other non-current assets 1,805,430,000 1,812,430,000Total non-current assets 9,682,255,861 9,704,797,020Total assets 11,979,121,067 11,899,812,361Current liabilities: Short-term borrowings 50,000,000 50,000,000 Tradable financial liabilities Derivative financial liabilities Bills payable Accounts payable 29,357,791 35,959,493 Advances from customers Liabilities of contracts Employee remunerations payable 59,137,772 64,506,520 Taxes and dues payable 1,586,591 3,040,948 Other payable 689,773,852 565,391,567 Including: Interest payable Dividends payable Liabilities held for sale Non-current liabilities due within one year 1,922,916 1,636,113 Other current liabilitiesTotal current liabilities 831,778,922 720,534,641Non-current liabilities: Long-term borrowings Bonds payable Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Note June 30, 2026 December 31, 2025 Including: Preferred stock Perpetual bonds Lease liabilities 3,272,527 5,168,920 Long-term accounts payable Long-term employee remunerations payable Estimated liabilities Deferred income 177,355 177,355 Deferred income tax liabilities Other non-current liabilitiesTotal non-current liabilities 3,449,882 5,346,275Total liabilities 835,228,804 725,880,916Owner"s equities: Capital stock 657,240,128 657,240,128 Other equity instruments Including: Preferred stock Perpetual bonds Capital reserves 401,287,028 401,287,028 Minus: Treasury stock 72,754,596 37,880,941 Other comprehensive income Special reserves Surplus reserves 342,732,000 342,732,000 Undistributed profits 9,815,387,703 9,810,553,230Total owner"s equities 11,143,892,263 11,173,931,445Total liabilities and owner"s equities 11,979,121,067 11,899,812,361Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo CuimeiCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan Note Amount incurred in this Amount incurred in prior Item period period Including: Operating income 7.38 1,572,704,753 1,470,576,177 Interest income Earned premium Handling fee and commission income Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period period Including: Operating costs 7.38 654,715,399 592,806,258 Interest expenditure Handling fees and commission expenditure Premium rebate Net amount of indemnity expenditure Net amount of the withdrawn reserve fund forinsurance contract Policy bonus payment Reinsurance expenditures Taxes and surcharges 7.39 115,451,525 97,851,440 Selling expenses 7.40 458,709,936 402,150,816 Administrative expenses 7.41 121,375,686 126,647,959 R&D expenses 7.42 9,923,137 9,071,966 Financial expenses 7.43 11,470,668 -14,647,932 Including: Interest expenses 8,320,670 5,528,569 Interest income 8,050,884 5,914,026 Plus: Other profit 7.44 8,354,311 19,258,546 Investment profit (loss is listed with “-”) 7.45 -3,299,098 -3,018,088 Including: Investment profit for joint-run business and -3,299,098 -3,018,088joint venture Financial assets measured at amortized costcease to be recognized as income Exchange income (loss is listed with “-”) Net exposure hedge income (loss is listed with “-”) Income from fair value changes (loss is listed with “-”) Credit impairment loss (loss is listed with “-”) 7.46 662,543 1,549,058 Asset impairment loss (loss is listed with “-”) 7.47 2,771,951 -2,093,965 Income from asset disposal (loss is listed with “-”) 7.48 25,845 361,014 Plus: Non-operating income 7.49 2,699,465 917,633 Minus: Non-operating expenses 7.50 265,628 589,363 Minus: income tax expenses 7.51 68,901,273 81,765,775 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period periodwith “-”)with “-”) Net after-tax amount of other comprehensive income attributable -11,755,124 13,583,338to owner of the parent companyprofit and loss laterbenefit plansreclassified into profit and loss under equity methodequity instrumentscredit risk -11,755,124 13,583,338and loss laterinto profit and loss under equity methodinvestmentscomprehensive incomeinvestments -11,755,124 13,583,338Financial Statement Net after-tax amount of other comprehensive income attributable -1,417,413 1,287,233 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period periodto minority shareholders Attributable to owner of the parent company 128,760,681 199,180,480 Attributable to minority shareholders 1,173,300 7,004,821Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo CuimeiCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan Note Amount incurred in this Amount incurred in prior Item period period Minus: Operating costs 18.4 138,231,034 145,265,979 Taxes and surcharges 5,842,654 3,077,351 Selling expenses Administrative expenses 23,083,593 24,273,338 R&D expenses 362,067 1,672,191 Financial expenses -6,331,159 -3,745,617 Including: Interest expenses 736,182 890,133 Interest income 7,005,240 7,868,873 Plus: Other profit 47,939 1,319,967 Investment profit (loss is listed with “-”) 18.5 173,495,195 46,246,053 Including: Investment profit for joint-run business andjoint venture Financial assets measured at amortized costcease to be recognized as income (loss is listed with “-”) Net exposure hedge income (loss is listed with “-”) Income from fair value changes (loss is listed with “-”) Credit impairment loss (loss is listed with “-”) 898,656 -288 Asset impairment loss (loss is listed with “-”) Income from asset disposal (loss is listed with “-”) Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period period Plus: Non-operating income 1,142,570 194,320 Minus: Non-operating expenses 158,137 159,997 Minus: income tax expenses 1,568,848 2,271,268“-”)with “-”)profit and loss laterbenefit plansreclassified into profit and loss under equity methodequity instrumentscredit riskand loss laterinto profit and loss under equity methodinvestmentscomprehensive incomeinvestmentsFinancial Statement Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period periodLegal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo CuimeiCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan Note Amount incurred in this Amount incurred in prior Item period period Cash received from sales of goods and rending of services 1,681,034,881 1,660,826,081 Net increase in customer and interbank deposits Net increase in borrowings from central bank Net increase in borrowings from other financial institutions Cash received from receiving insurance premium of originalinsurance contract Net cash received from reinsurance business Net increase in policy holder deposits and investment funds Cash received from collecting interest, handling fees andcommissions Net increase in borrowing funds Net increase in repurchased business funds Net cash received for buying and selling securities Tax refund received 22,453,926 26,792,333 Other cash received related to operating activities 7.53 18,053,749 33,768,838Subtotal of cash flows of operating activities 1,721,542,556 1,721,387,252 Cash paid for goods and services 548,067,483 673,020,392 Net increase in customer loans and advances Net increase in deposits in central bank and interbank deposits Cash paid to original insurance contract payments Net increase in lending funds Cash paid to interest, handling fees and commissions Cash paid to policy bonus Cash paid to and on behalf of employees 219,551,512 224,360,824 Cash paid for taxes and expenses 317,580,578 339,863,955 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period period Other cash paid related to operating activities 7.53 218,107,090 244,720,953Sub-total of cash outflows of operating activities 1,303,306,663 1,481,966,124Net cash flows from operating activities 418,235,893 239,421,128 Cash received from disinvestment Cash received from withdrawal of fixed deposits 18,000,000 39,000,000 Cash received from obtaining investment income Cash received from obtaining interest income 122,211 604,684 Net cash received from disposal of fixed assets, intangibleassets and other long-term assets Net cash received from disposal of branch and other business unit Other cash received related to investing activitiesSubtotal of cash flows of investment activities 27,147,911 149,639,182 Cash paid to acquire fixed assets, intangible assets and otherlong-term assets Cash for investment Cash paid for purchasing fixed deposits 33,000,000 18,000,000 Net increase in hypothecated loan Net cash paid for acquiring branch and other business unit Other cash paid related to investment activitiesSubtotal of cash outflows of investment activities 62,018,682 56,733,880Net cash flow from investing activities -34,870,771 92,905,302 Cash received from acquiring investment Including: Cash received from acquiring minority shareholdersinvestment by branch Cash received from acquiring loans 247,817,093 221,495,666 Other cash received related to financing activitiesSubtotal cash flows of financing activities 247,817,093 221,495,666 Cash paid for paying debts 234,205,307 202,716,654 Cash paid for distributing dividend and profit or payinginterest Including: Dividend and profit paid to minority shareholdersby branch Other cash paid related to financing activities 46,102,225 18,237,867 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Note Amount incurred in this Amount incurred in prior Item period periodSubtotal of cash outflows of financing activities 451,751,198 494,278,557Net cash flow from financing activities -203,934,105 -272,782,891 -1,380,000 1,469,544equivalents Plus: Balance at the beginning of the period of cash and cashequivalentsLegal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo CuimeiCompiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan Item Amount incurred in this period Amount incurred in prior period Cash received from sales of goods andrending of services Tax refund received Other cash received related to operatingactivitiesSubtotal of cash flows of operating activities 388,273,639 205,199,332 Cash paid for goods and services 109,344,580 163,211,040 Cash paid to and on behalf of employees 25,778,082 27,267,075 Cash paid for taxes and expenses 17,869,533 14,046,037 Other cash paid related to operatingactivitiesSub-total of cash outflows of operatingactivitiesNet cash flows from operating activities 221,764,311 -27,142,463 Cash received from disinvestment Cash received from withdrawal of fixeddeposits Cash received from obtaining investmentincome Cash received from obtaining interest 122,211 604,684 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Amount incurred in this period Amount incurred in prior periodincome Net cash received from disposal of fixedassets, intangible assets and other long-term 9,025,700 110,027,000assets Net cash received from disposal of branchand other business unit Other cash received related to investingactivitiesSubtotal of cash flows of investment activities 627,909,587 357,761,979 Cash paid to acquire fixed assets,intangible assets and other long-term assets Cash for investment Cash paid for purchasing fixed deposits 33,000,000 18,000,000 Net cash paid for acquiring branch andother business unit Other cash paid related to investmentactivitiesSubtotal of cash outflows of investmentactivitiesNet cash flow from investing activities 197,835,417 335,168,563 Cash received from acquiring investment Cash received from acquiring loans Other cash received related to financingactivitiesSubtotal cash flows of financing activities Cash paid for paying debts Cash paid for distributing dividend andprofit or paying interest Other cash paid related to financingactivitiesSubtotal of cash outflows of financing activities 201,553,581 278,259,822Net cash flow from financing activities -201,553,581 -278,259,822cash and cash equivalents Plus: Balance at the beginning of theperiod of cash and cash equivalents Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Amount incurred in this period Amount incurred in prior periodcash equivalentsLegal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan This period Owner"s equities of the parent company Item Other equity Minority Total owner"s Minus: Other General Capital instruments Capital Special Surplus Undistributed equity equities Treasury comprehensive risk Others Subtotal stock Preferred Perpetual reserves reserves reserves profits Others stock income preparation stock bonds Plus: Accounting policies changing Previous error correction Othersperiod (reducing amount is listed with “-”)invested capitalowner"s equities -164,310,032 -164,310,032 -388,355 -164,698,387shareholders)increased capital (or capital stock)increased capital (or capital stock)the benefit plan variation Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportother comprehensive income Unit: yuan First Half of 2025 Owner"s equities of the parent company Item Other equity Minority Total owner"s instruments Minus: Other General Capital Special Surplus Undistributed equity equities Capital stock Treasury comprehensiv risk Others Subtotal Preferred Perpetual reserves reserves reserves profits Others stock e income preparation stock bonds Plus: Accounting policieschanging Previous error correction Othersin this period (reducing amount is 7,150,483 13,583,338 -83,132,418 -76,699,563 5,691,747 -71,007,816listed with “-”)capitalholders" invested capitalreckoned in owner"s equities Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportpreparation -268,729,560 -268,729,560 -1,313,074 -270,042,634shareholders)and increased capital (or capitalstock)and increased capital (or capitalstock)deficitover from the benefit plan amountfrom other comprehensive income Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan This period Other equity instruments Other Item Capital Minus: Special Surplus Undistributed Total owner"s Capital stock Preferred Perpetual comprehensive Others Others reserves Treasury stock reserves reserves profits equities stock bonds income Plus: Accounting policies changing Previous error correction Othersperiod (reducing amount is listed with “-”)capitalowner"s equitiesincreased capital (or capital stock)increased capital (or capital stock)benefit plan amount Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportother comprehensive income Unit: yuan First Half of 2025 Other equity instruments Other Item Minus: Special Surplus Undistributed Total owner"s Capital stock Preferred Perpetual Capital reserves comprehensive Others Others Treasury stock reserves reserves profits equities stock bonds income Plus: Accounting policies changing Previous error correction Othersperiod (reducing amount is listed with “-”)capitalowner"s equities Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportincreased capital (or capital stock)increased capital (or capital stock)benefit plan amountother comprehensive income Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) was incorporated as a joint-stock limited company in accordance with the Company Law of the People"s Republic of China (the “PRC”) in the merger and reorganization carried out by Yantai Changyu Group Co., Ltd. (“Changyu Group”) with its assets and liabilities in relation to wine business. The Company and its subsidiary companies (hereinafter collectively referred to as the “Group”) are engaged in the production and sale of wine, brandy and sparkling wine, planting and purchase of grapes, development of tourism resources, etc. The registered address of the Company is Yantai City, Shandong Province, and the office address of the headquarters is 56 Dama Road, Zhifu District, Yantai City, Shandong Province. As on June 30, 2026, the Company issued 657,240,128 shares accumulatively. Refer to Note The parent company of the Group is Changyu Group incorporated in China, which was ultimately and actually controlled by four parties, including Yantai Guofeng Investment Holding Group Co., Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai Yuhua Investment & Development Co., Ltd. The financial statement and the consolidated financial statement of the Company were approved by the Board of Directors on August 19, 2026. The details of scope of the consolidated financial statement in this period can be seen in Note The Company prepares the financial statement on the basis of continuous operation. The Group has appraised the ability of continuous operation for 12 months from June 30, this financial statement is prepared on the basis of the continuous operation assumption. This financial statement fulfills the requirement of Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view of the consolidated financial status and the financial status as on June 30, 2026, as well as the consolidated operating result, the operating result, the consolidated cash flow and the cash flow of the Company from January to June 2026. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report In addition, the financial statement of the Company also complies with the related disclosure requirements for statement and its notes stipulated by Preparation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on Financial Reports (2023 Revision) by the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”). The accounting year is from January 1 to December 31 in Gregorian calendar. The Company takes the period from the acquisition of assets for processing to the realization of cash or cash equivalents as its normal operating cycle. The operating cycle of the Company is 12 months. Since Renminbi (RMB) is the currency of the main economic environment in which the Company and the domestic subsidiary companies thereof are situated, the Company and the subsidiary companies thereof adopt RMB as the recording currency. The overseas subsidiary companies thereof determine EUR, CLP and AUD as the recording currency according to the main economic environment in which they are situated. The currency in this financial statement prepared by the Group is RMB. In preparing these financial statements, the foreign currency financial statements of overseas subsidiaries have been translated in accordance with Note 5.9. Item Significant standards Single of other payables / accounts payable with Other significant payables / accounts an aging of over 1 year exceeding 0.5% of the payable with an aging of over 1 year Group"s total liabilities Single of construction in progress with the Significant construction in progress carrying amount exceeding 0.5% of the Group"s noncurrent assets Non-wholly-owned subsidiary with the book value of net assets attributable to minority Significant non-wholly-owned subsidiary shareholders exceeding 0.5% of the Group"s net assets Long-term equity investment in a single joint Significant joint venture or associate venture or associate with a carrying amount exceeding 0.5% of the Group"s net assets Significant cash flows from investing Single of cash flows with the amount exceeding activities 0.5% of the Group"s total assets Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportnon-common control If the Group obtains control over one or more enterprises (or a group of assets or net assets) and such transaction or event constitutes a business, it shall be accounted for as a business combination. Business combinations are classified into business combination under common control and business combination under non-common control. For a business combination not under common control, when assessing whether the acquired set of assets or net assets constitutes a business, the acquirer may consider applying the “concentration test” as a simplified assessment. If the acquired set passes the concentration test, it shall be determined not to constitute a business. If it does not pass the concentration test, it shall be assessed against the business criteria. When the Group acquires a set of assets or net assets that does not constitute a business, the acquisition cost shall be allocated to the identifiable assets and liabilities acquired at their relative fair values on the acquisition date, rather than applying the accounting treatment for a business combination. A business combination under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or same multiple parties before and after the combination, and that control is not transitory. The assets and liabilities obtained by the combining party in the business combination shall be measured on the basis of the carrying amount in the ultimate controlling party"s consolidated financial statement as at the combination date. Where there is a difference between the Group"s share of carrying amount of the net assets acquired and the carrying amount of the combination consideration paid (or the total par value of the shares issued), the deficit shall be applied in sequence against the surplus reserve and then the undistributed profits. If the stock premium in capital surplus is not sufficient to offset, the deficit shall be applied in sequence against the surplus reserve and then the undistributed profits. The direct related expenses incurred for the business combination shall be included in the current profit and loss when incurred. The combination date is the date on which the combining party actually obtains control of the combined party. A business combination under non-common control is a business combination in which all of the combining parties are not ultimately controlled by the same party or same multiple parties before and after the combination. The sum of fair values of the assets paid by the Group, as the acquirer, (including the acquiree"s equity the Group held before the acquisition date), liabilities incurred or assumed, and the equity securities issued on the acquisition date in exchange for the control over the acquiree, shall deduct the fair value of the acquiree"s identifiable net assets acquired in the combination on the acquisition date. After considering the effect of related deferred income taxes , if the difference is positive, it shall be recognized as goodwill; and if it is negative, it shall be included in the current profit and loss. The direct expenses incurred for the business combination by the Group shall be included in the current Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report profit and loss. All the identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree and meet the recognition conditions shall be confirmed by the Group on the acquisition date according to the fair value thereof. The acquisition date is the date on which the acquirer actually obtains control of the acquiree. For a business combination involving entities not under common control and achieved in stages, the Group re-measures its previously-held equity interest in the acquiree to its acquisition-date fair value, and recognizes any resulting difference between the fair value and the carrying amount as investment income or other comprehensive income for the current period. Other comprehensive income and other changes in owner"s equities that can be reclassified into profit or loss under the equity method of accounting for the equity interest of the acquiree held before acquisition date shall be transferred to current investment income on the purchase date; and if equity interests of the acquiree held before acquisition date are equity instrument investments measured at fair value with changes recognized in other comprehensive income, other comprehensive income recognized before acquisition date shall be transferred to retained earnings on acquisition date.statement The consolidation scope of the consolidated financial statements is determined based on control, including the Company and its controlled subsidiaries. Control refers to the Group"s power over the investee, enjoying variable returns through participation in related activities of the investee, and having the ability to use its power over the investee to influence its return amount. When determining whether the Group has power over the investee, the Group only considers substantive rights related to the investee (including substantive rights enjoyed by the Group itself and other parties). The financial condition, operating performance, and cash flows of the subsidiaries shall be included in the consolidated financial statements from the date of control to the date of control termination. The equity, profit and loss, and total comprehensive income attributable to minority shareholders of the subsidiaries shall be separately presented in the shareholders" equity section of the consolidated balance sheet and the net profit and total comprehensive income section of the consolidated profit statement. If the current losses shared by minority shareholders of the subsidiaries exceed their share of the subsidiaries" initial owner"s equity, the balance shall still be offset against the minority equity. When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company has made necessary adjustments to the financial statements of the subsidiary based on the Company"s own accounting period or accounting policies. All intra-group transactions and balances during the combination, including unrealized intra-group transactions gains and losses, have been offset. If there is evidence that unrealized losses incurred in intra-group transactions are related to impairment losses of assets, the full amount of such losses shall be recognized. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Where a subsidiary is acquired through a business combination involving entities under common control, when preparing the consolidated financial statements for current period, based on the carrying amounts of the assets and liabilities of the combined subsidiary in the financial statements of the ultimate controlling party, the combined subsidiary shall be deemed to be included in the consolidation scope of the Company when the ultimate controlling party of the Company begins to exercise control over it, and the initial balance and the comparative figures of the consolidated financial statements shall be correspondingly adjusted. Where a subsidiary is acquired through a business combination involving entities not under common control, when preparing the consolidated financial statements for current period, based on the fair value of identifiable assets and liabilities of the acquired subsidiary determined on the acquisition date, the acquired subsidiary shall be included in the consolidation scope of the Company from the acquisition date. When the Group loses control over a subsidiary, any resulting disposal gains or losses are recognized as investment income for the current period. The remaining equity investment is re-measured at its fair value at the date when control is lost, any resulting gains or losses are also recognized as investment income for the current period. When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-term equity investment in the subsidiary in stages, the following are considered to determine whether the Group should account for the multiple transactions as a bundled transaction: - arrangements are entered into at the same time or in contemplation of each other; - arrangements work together to achieve an overall commercial effect; - the occurrence of one arrangement is dependent on the occurrence of at least one other arrangement; - one arrangement considered on its own is not economically justified, but it is economically justified when considered together with other arrangements. If each of the multiple transactions does not form part of a bundled transaction, the transactions conducted before the loss of control of the subsidiary are accounted for in accordance with the accounting policy for partial disposal of equity investment in subsidiaries where control is retained. If each of the multiple transactions forms part of a bundled transaction, each transaction shall be treated as a transaction for disposing of the existing subsidiary and losing control. The difference between the disposal price and the net carrying value of the subsidiary that is continuously calculated from the acquisition date corresponding to the disposal investment before losing control shall be included in other comprehensive income in the consolidated financial statements, and be transferred when losing control to profit or loss of the period losing control. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report The difference between the cost of long-term equity investment acquired by the Company through the purchase of minority equity and the net asset share of the subsidiary calculated based on the newly increased shareholding ratio, as well as the difference between the disposal price obtained from partial disposal of equity investment in the subsidiary without losing control and the net asset share of the subsidiary corresponding to the disposal of long-term equity investment, shall be adjusted to the capital reserve (share premium) in the consolidated balance sheet. And if the capital reserve (share premium) is insufficient to offset, the deficit shall be applied in sequence against the surplus reserve and then the undistributed profits. Cash and cash equivalents comprise cash on hand, deposits that can be used for payment at any time, and short-term highly liquid investments which are readily convertible into known amount of cash with an insignificant risk of changes in value. When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchange rates. Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet date. The resulting exchange differences are generally recognized in current profit or loss, unless they arise from the re-translation of the principal and interest of specific borrowings for the acquisition and construction of qualifying assets. Non-monetary items that are measured at historical cost in foreign currencies are translated to Renminbi using the exchange rate at the transaction date. In translating the financial statements of a foreign operation, assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items, excluding undistributed profit and the translation differences in other comprehensive income, are translated to Renminbi at the spot exchange rates at the transaction date. Income and expenses in the income statement are translated to Renminbi at the spot exchange rates at the transaction date. The resulting translation differences generated by the above conversion are recognized in other comprehensive income. The translation differences accumulated in other comprehensive income with respect to a foreign operation are transferred to profit or loss in the period when the foreign operation is disposed. Financial instruments include cash at bank and on hand, investments in debt and equity securities other than those classified as long-term equity investments, receivables, payables, loans and borrowings and share capital. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report A financial asset and financial liability is recognized in the balance sheet when the Group becomes a party to the contractual provisions of a financial instrument. A financial asset (unless it is a trade receivable without a significant financing component) and financial liability is measured initially at fair value. For financial assets and financial liabilities at fair value through profit or loss, any related directly attributable transaction costs are charged to profit or loss; for other categories of financial assets and financial liabilities, any related attributable transaction costs are included in their initial costs. Accounts receivable containing no significant financing component or not considering financing component of contracts that do not exceed one year are measured initially at transaction prices determined by the accounting policies set out in Note 5.22. (a) Classification of financial assets of this Group The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. On initial recognition, a financial asset is classified as measured at amortized cost, at fair value through other comprehensive income (“FVOCI”), or at fair value through profit or loss (“FVTPL”). Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: -it is held within a business model whose objective is to hold assets to collect contractual cash flows; and - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: - it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment"s fair value in other comprehensive income. This election is made on an investment-by-investment basis. The Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportinstrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortized cost or FVOCI as described aboveare measured at FVTPL. On initial recognition, the Group may irrevocably designate afinancial asset that otherwise meets the requirements to be measured at amortized cost or atFVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatchthat would otherwise arise.The business model refers to how the Group manages its financial assets in order to generatecash flows. That is, the Group"s business model determines whether cash flows will resultfrom collecting contractual cash flows, selling financial assets or both. The Group determinesthe business model for managing the financial assets according to the facts and based on thespecific business objective for managing the financial assets determined by the Group"s keymanagement personnel.In assessing whether the contractual cash flows are solely payments of principal and interest,the Group considers the contractual terms of the instrument. For the purposes of thisassessment, ‘ principal" is defined as the fair value of the financial asset on initialrecognition. ‘Interest" is defined as consideration for the time value of money and for thecredit risk associated with the principal amount outstanding during a particular period of timeand for other basic lending risks and costs, as well as a profit margin. The Group alsoassesses whether the financial asset contains a contractual term that could change the timingor amount of contractual cash flows such that it would not meet this condition.(b) Subsequent measurement of financial assets- Financial assets at FVTPLThese financial assets are subsequently measured at fair value. Net gains and losses,including any interest or dividend income, are recognized in profit or loss unless the financialassets are part of a hedging relationship.- Financial assets at amortized costThese assets are subsequently measured at amortized cost using the effective interest method.A gain or loss on a financial asset that is measured at amortized cost and is not part of ahedging relationship shall be recognized in profit or loss when the financial asset isderecognized and reclassified, through the amortization process or in order to recognizeimpairment gains or losses.- Debt investments at FVOCIThese assets are subsequently measured at fair value. Interest income calculated using theeffective interest method, impairment and foreign exchange gains and losses are recognizedin profit or loss. Other net gains and losses are recognized in other comprehensive income.On derecognition, gains and losses accumulated in other comprehensive income arereclassified to profit or loss. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report - Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to retained earnings. Financial liabilities are classified as measured at FVTPL or amortized cost by the Group. - Financial liabilities at FVTPL A financial liability is classified as at FVTPL if it is classified as held-for-trading (including derivative financial liability) or it is designated as such on initial recognition. Financial liabilities at FVTPL are subsequently measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss, unless the financial liabilities are part of a hedging relationship. - Financial liabilities at amortized cost These financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial assets and financial liabilities are generally presented separately in the balance sheet, and are not offset. However, a financial asset and a financial liability are offset and the net amount is presented in the balance sheet when both of the following conditions are satisfied: - The Group currently has a legally enforceable right to set off the recognized amounts； - The Group intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously. Financial asset is derecognized when one of the following conditions is met: - the contractual rights to the cash flows from the financial asset expire; - the financial asset has been transferred and the Group transfers substantially all of the risks and rewards of ownership of the financial asset; or - the financial asset has been transferred, although the Group neither transfers nor retains substantially all of the risks and rewards of ownership of the financial asset, it does not retain control over the transferred asset. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the difference between the two amounts below is recognized in current profit or loss: - the carrying amount of the financial asset transferred measured at the date of derecognition; - the sum of the consideration received from the transfer and, when the transferred financial asset is a debt investment at FVOCI, any cumulative gain or loss that has been recognized directly in other comprehensive income for the part derecognized. The Group derecognizes a financial liability (or part of it) only when its contractual obligation (or part of it) is extinguished. The Group recognizes loss allowances for expected credit loss (ECL) on: - financial assets measured at amortized cost; - financial investments at fair value through other comprehensive income. Financial assets measured at fair value, including debt investments or equity securities at FVPL, equity securities designated at FVOCI and derivative financial assets, are not subject to the ECL assessment. Measurement of ECLs ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). The maximum period considered when estimating ECLs is the maximum contractual period (including extension options) over which the Group is exposed to credit risk. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. ECLs within the next 12 months refers to the ECLs that may occur due to a financial instrument default event within 12 months after the balance sheet date (if the expected duration of the financial instrument is less than 12 months, it is within the expected duration), and is a part of the ECLs for the entire duration. For bills receivable, accounts receivable, accounts receivable financing generated from daily business activities such as selling goods and providing services, loss allowance always measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the Group"s historical credit loss experience, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the balance sheet date. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportFor assets other than bills receivable, accounts receivable, accounts receivable financing thatmeet one of the following conditions, loss allowance are measured at an amount equal toequal to lifetime ECLs:- If the financial instrument is determined to have low credit risk at the balance sheet date;or- If the credit risk on a financial instrument has not increased significantly since initialrecognition.Bad debt provision for accounts receivable(a) Combination categories and determination criteria for bad debt provision based on creditrisk characteristics According to the different credit risk characteristics of the acceptor, the Group dividesBills receivable bills receivable into two combinations: bank acceptance bills and commercial acceptance bills. Based on the historical experience of this Group, there is no significant difference in the occurrence of losses among different segmented customer groups. Therefore, this Accounts Group considers all accounts receivable as a combination and does not further receivable differentiate between different customer groups when calculating the bad debt provision for accounts receivable. The accounts receivable financing of this Group is for accounts receivable bank Accounts acceptance bills with dual holding purposes. Due to the fact that the accepting banks receivable are all banks with high credit ratings, this Group considers all accounts receivable financing financing as a combination. The other receivables of this Group mainly include deposits receivable and security deposits. Based on the nature of accounts receivable and the credit risk characteristics Other receivables of different counterparties, the Group divides other accounts receivable into two combinations, namely: combination of deposits receivable and security deposits, and combination of other accounts receivable.(b) Determination criteria for single provision of bad debt reserves based on individualprovisionFor bills receivable, accounts receivable, accounts receivable financing, and other accountsreceivable, the Group usually measures its loss provision based on a combination of creditrisk characteristics. If the credit risk characteristics of a counterparty are significantlydifferent from those of other counterparties in the portfolio, or if there is a significant changein the credit risk characteristics of that counterparty, a separate provision for loss shall bemade for accounts receivable from that counterparty. For example, when a counterpartyexperiences serious financial difficulties and the ECL rate of accounts receivable from thatcounterparty is significantly higher than the ECL rate of its aging range, a separate provisionfor loss shall be made for it.Financial instruments that have low credit risk Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportThe credit risk on a financial instrument is considered low if the financial instrument has alow risk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.Significant increases in credit riskIn assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group assesses whether the credit risk of a financial instrument hasincreased significantly since initial recognition by comparing the risk of default at thebalance sheet date with that at the date of initial recognition.When determining whether the credit risk of a financial asset has increased significantlysince initial recognition and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument"s external orinternal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal environmentthat have a significant adverse effect on the debtor"s ability to meet its obligation to theGroup.The Group assumes that the credit risk on a financial asset has increased significantly if it ismore than 30 days past due.Credit-impaired financial assetsAt each balance sheet date, the Group assesses whether financial assets carried at amortizedcost and debt investments at FVOCI are credit-impaired. A financial asset is‘credit-impaired" when one or more events that have a detrimental impact on the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower"s financial difficulty, theGroup having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganization; or- the disappearance of an active market for that financial asset because of financialdifficulties. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Presentation of allowance for ECL ECLs are re-measured at each balance sheet date to reflect changes in the financial instrument"s credit risk since initial recognition. Any change in the ECL amount is recognized as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for debt investments that are measured at FVOCI, for which the loss allowance is recognized in other comprehensive income. Write-off The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition event. This is generally the case when the Group determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group"s procedures for recovery of amounts due. Subsequent recoveries of an asset that was previously written off are recognized as a reversal of impairment in profit or loss in the period in which the recovery occurs. The consideration received from the issuance of equity instruments is recognized in shareholders" equity at the actual issue price, with the related transaction costs deducted from shareholders" equity (capital reserve). And if the capital reserve (share premium) is insufficient to offset, the deficit shall be applied in sequence against the surplus reserve and then the undistributed profits. Consideration and transaction costs paid by the Company for repurchasing self-issued equity instruments are deducted from shareholders" equity. When the Company repurchases its own shares, those shares are treated as treasury shares. All expenditure relating to the repurchase is recorded in the cost of the treasury shares, with the transaction recording in the share register. Treasury shares are excluded from profit distributions and are presented as a deduction under shareholders" equity in the balance sheet. Upon the cancellation of treasury shares, share capital shall be reduced by the total par value of the shares cancelled. Where the cost of the treasury shares exceeds their total par value, the excess shall be applied in sequence against the capital reserve (share premium), the surplus reserve and then the undistributed profits. Where the cost of the treasury shares is lower than their total par value, the shortfall shall be credited to the capital reserve (share premium). Inventories include raw materials, work in progress and reusable materials. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report conversion and other expenditure incurred in bringing the inventories to their present location and condition. In addition to the purchase cost of raw materials, work in progress and finished goods include direct labor costs and an appropriate allocation of production overheads. Agricultural products harvested are reported in accordance with the Accounting Standard for Business Enterprises No. 1 - Inventories. Cost of inventories is calculated using the weighted average method. The Group maintains a perpetual inventory system. Consumables including low-value consumables and packaging materials are amortized when they are used. The amortization charge is included in the cost of the related assets or recognized in profit or loss for the current period.inventories At the balance sheet date, inventories are carried at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes. The net realizable value of materials held for use in the production is measured based on the net realizable value of the finished goods in which they will be incorporated. The net realizable value of the inventory held to satisfy sales or service contracts is measured based on the contract price, to the extent of the quantities specified in sales contracts, and the excess portion of inventories is measured based on general selling prices. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for impairment, and is recognized in profit or loss. (a) Long-term equity investments acquired through a business combination - The initial cost of a long-term equity investment acquired through a business combination involving entities under common control is the Company"s share of the carrying amount of the subsidiary"s equity in the consolidated financial statements of the ultimate controlling Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report party at the combination date. The difference between the initial investment cost and the carrying amount of the consideration given is adjusted to the share premium in the capital reserve, with any deficit applied in sequence against the surplus reserve and then the undistributed profits. For a long-term equity investment in a subsidiary acquired through a business combination achieved in stages which do not form a bundled transaction and involving entities under common control, the Company determines the initial cost of the investment in accordance with the above policies. The difference between this initial cost and the sum of the carrying amount of previously-held investment and the consideration paid for the shares newly acquired is adjusted to capital premium in the capital reserve, with any deficit applied in sequence against the surplus reserve and then the undistributed profits . - For a long-term equity investment obtained through a business combination not involving enterprises under common control, the initial cost comprises the aggregate of the fair value of assets transferred, liabilities incurred or assumed, and equity securities issued by the Company, in exchange for control of the acquiree. For a long-term equity investment obtained through a business combination not involving entities under common control and achieved through multiple transactions in stages which do not form a bundled transaction, the initial cost comprises the carrying amount of the previously-held equity investment in the acquiree immediately before the acquisition date, and the additional investment cost at the acquisition date. (b) Long-term equity investments acquired other than through a business combination - A long-term equity investment acquired other than through a business combination is initially recognized at the amount of cash paid if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an investment is acquired by issuing equity securities.investment (a) Investments in subsidiaries In the Company"s separate financial statements, long-term equity investments in subsidiaries are accounted for using the cost method unless the investment is classified as held for sale. Except for cash dividends or profit distributions declared but not yet distributed that have been included in the price or consideration paid in obtaining the investments, the Company recognizes its share of the cash dividends or profit distributions declared by the investee as investment income for the current period. The investments in subsidiaries are stated in the balance sheet at cost less impairment losses. For the impairment testing method and impairment provision method of the investments in subsidiaries, refer to Note 5.21. In the Group"s consolidated financial statements, subsidiaries are accounted for in accordance with the policies described in Note 5.6. (b) Investments in joint ventures and associates Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportA joint venture is an arrangement whereby the Group and other parties have joint control andrights to the net assets of the arrangement.An associate is an enterprise the Group can exert significant influence on.A long-term equity investment in a joint venture and associate is accounted for using theequity method for subsequent measurement, unless the investment is classified as held forsale.The accounting treatments under the equity method adopted by the Group are as follows:- Where the initial cost of a long-term equity investment exceeds the Group"s interest in thefair value of the investee"s identifiable net assets at the date of acquisition, the investment isinitially recognized at cost. Where the initial investment cost is less than the Group"s interestin the fair value of the investee"s identifiable net assets at the date of acquisition, theinvestment is initially recognized at the investor"s share of the fair value of the investee"sidentifiable net assets, and the difference is recognized in current profit or loss.- After the acquisition of the investment in joint ventures and associates, the Grouprecognizes its share of the investee"s profit or loss and other comprehensive income asinvestment income or losses and other comprehensive income respectively, and adjusts thecarrying amount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced by theamount attributable to the Group. Changes in the Group"s share of the investee"s owners"equity, other than those arising from the investee"s net profit or loss, other comprehensiveincome or profit distribution (referred to as“other changes in owners" equity”), is recognizeddirectly in the Group"s equity, and the carrying amount of the investment is adjustedaccordingly.- In calculating its share of the investee"s net profits or losses, other comprehensive incomeand other changes in owners" equity, the Group recognizes investment income and othercomprehensive income after making appropriate adjustments to align the accounting policiesor accounting periods with those of the Group based on the fair value of the investee"sidentifiable net assets at the date of acquisition. Unrealized profits and losses resulting fromtransactions between the Group and its associates or joint ventures are eliminated to theextent of the Group"s interest in the associates or joint ventures. Unrealized losses resultingfrom transactions between the Group and its associates or joint ventures are eliminated in thesame way as unrealized gains but only to the extent that there is no impairment.- The Group discontinues recognizing its share of further losses of the investee after thecarrying amount of the long-term equity investment and any long-term interest that insubstance forms part of the Group"s net investment in the associate is reduced to zero, exceptto the extent that the Group has an obligation to assume additional losses. If the joint ventureor the associate subsequently reports net profits, the Group resumes recognizing its share ofthose profits only after its share of the profits equals the share of losses not recognized. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report For the impairment testing method and impairment provision method of the investments in joint ventures and associates of this Group, refer to Note 5.21.investee Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (activities with significant impact on the returns of the arrangement) require the unanimous consent of the parties sharing control. The following factors are usually considered when assessing whether the Group can exercise joint control over an investee: - Whether no single participant party is in a position to control the investee"s related activities unilaterally; - Whether strategic decisions relating to the investee"s related activities require the unanimous consent of all participant parties that sharing of control. Significant influence is the power to participate in the financial and operating policy decisions of an investee but does not have control or joint control over those policies. Investment properties are properties held either to earn rental income or for capital appreciation or for both. Investment properties are accounted for using the cost model and stated in the balance sheet at cost less accumulated depreciation, amortization and impairment losses, and adopts a depreciation or amortization policy for the investment property which is consistent with that for buildings or land use rights, unless the investment property is classified as held for sale. For the impairment testing method and impairment provision method, refer to Note 5.21. Residual value rate Annual depreciation Category Useful life (years) (%) rate (%) Plant and buildings 20-40 years 0-5% 2.4%-5.0% Fixed assets represent the tangible assets held by the Group for use in production of goods, supply of services, for rental or for administrative purposes with useful lives over one accounting year. The initial cost of a purchased fixed asset comprises the purchase price, related taxes, and any attributable expenditure for bringing the asset to working condition for its intended use. The initial cost of self-constructed fixed assets is measured in accordance with the policy set out in Note 5.15. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Where the parts of an item of fixed assets have different useful lives or provide benefits to the Group in a different pattern, thus necessitating use of different depreciation rates or methods, each part is recognized as a separate fixed asset. For any subsequent cost of fixed assets, including the cost of replacing part of an item of fixed assets, when it is probable that the economic benefits associated with the costs will flow to the Group, it shall be capitalized and included in the cost of fixed assets, and the carrying amount of the replaced part is derecognized meanwhile; and the costs related to the day-to-day maintenance of fixed assets shall be recognized in current profit or loss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses. The cost of a fixed asset, less its estimated residual value and accumulated impairment losses, is depreciated using the straight-line method over its estimated useful life, unless the fixed asset is classified as held for sale. The useful lives, residual value rates and annual depreciation rates of each class of fixed assets are as follows: Residual value rate Annual depreciation rate Class Useful life (years) (%) (%) Plant and buildings 20-40 years 0-5% 2.4%-5.0% Machinery equipment 5-30 years 0-5% 3.2%-20.0% Motor vehicles 4-12 years 0-5% 7.9%-25.0% Useful lives, estimated residual values and depreciation methods are reviewed at least at each year-end. The Group will derecognize of a fixed asset when meeting one of the following conditions: - when the fixed asset is holding for disposal; or - when no future economic benefit is expected to be generated from its use or disposal. Gains or losses arising from the retirement or disposal of an item of fixed asset are determined as the difference between the net disposal proceeds and the carrying amount of the item, and are recognized in profit or loss on the date of retirement or disposal. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report The cost of self-constructed fixed assets includes the cost of materials, direct labor, capitalized borrowing costs, and necessary costs attributable to bringing the asset to working condition for its intended use. A self-constructed fixed asset is classified as construction in progress and transferred to fixed asset when it is ready for its intended use. No depreciation is provided against construction in progress. Criteria and timing for transfer of construction in progress to fixed assets Category Criteria and Timing for Transfer to fixed assets (1) The main construction and supporting works have been substantially completed; (2) The construction meets the design specifications and has passed inspections by the surveying, design, construction, and supervision and other institutions; (3) Acceptance inspections have been completed Buildings and by external authorities such as fire safety, land, and planning Structures departments; (4) If the construction reaches the intended usable condition but the completion settlement has not yet been finalized, it shall be transferred to fixed assets from the date it reaches the intended usable condition, based on the estimated construction cost. (1) Relevant equipment and other supporting facilities have been fully installed; (2) The equipment has been tested and can maintain normal and stable operation over a period of Machinery and time; (3) The production equipment can produce qualified Equipment products consistently over a period of time; (4) The equipment has been accepted by asset management personnel and users. Construction in progress is stated in the balance sheet at cost less impairment losses (see Note 5.21). If an enterprise sells products or by-products produced by fixed assets before they reach their intended usable state to the outside parties, in accordance with the provisions of Accounting Standards for Business Enterprises No. 14 – Revenue and Accounting Standards for Business Enterprises No. 1 – Inventories, relevant income and costs shall be accounted for separately and included in profit or loss for the current period. Borrowing costs incurred directly attributable to the acquisition, and construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as financial expenses when incurred. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report During the capitalization period, the amount of interest (including amortization of any discount or premium on borrowing) to be capitalized in each accounting period is determined as follows: - Where funds are borrowed specifically for the acquisition and construction or production of a qualifying asset, the amount of interest to be capitalized is the interest expense calculated using effective interest rates during the period less any interest income earned from depositing the borrowed funds or any investment income on the temporary investment of those funds before being used on the asset. - To the extent that the Group borrows funds generally and uses them for the acquisition and construction or production of a qualifying asset, the amount of borrowing costs eligible for capitalization is determined by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditure on the asset over the above amounts of specific borrowings. The capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings. The effective interest rate is determined as the rate that exactly discounts estimated future cash flow through the expected life of the borrowing or, when appropriate, a shorter period to the initially recognized amount of the borrowings. During the capitalization period, exchange differences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifying asset. The exchange differences related to the principal and interest on foreign currency borrowings other than a specific-purpose borrowing are recognized as a financial expense when incurred. The capitalization period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation of capitalization, excluding any period over which capitalization is suspended. Capitalization of borrowing costs commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities of acquisition, construction or production that are necessary to prepare the asset for its intended use are in progress, and ceases when the assets become ready for their intended use. Capitalization of borrowing costs should cease when the qualifying asset being constructed or produced has reached its expected usable or saleable condition. Capitalization of borrowing costs is suspended when the acquisition, construction or production activities are interrupted abnormally for a period of more than three months. The biological assets of the Group are productive biological assets. Productive biological assets are biological assets held for the purposes of producing agricultural produce, rendering of services or rental. Productive biological assets in the Group are vines. Productive biological assets are initially measured at cost. The cost of self-grown Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report or self-bred productive biological assets represents the necessary attributable expenditure incurred before satisfying the expected production and operating purpose, including capitalized borrowing costs. Productive biological assets, after reaching the expected production and operating purpose, are depreciated using the straight-line method over its useful life. The useful lives, estimated net residual value rates and annual depreciation rates of productive biological assets are as follows: Estimated net residual rate Annual depreciation rate Category Useful life (years) (%) (%) Vines 20 years 0% 5.0% The Group evaluates the useful life and expected net residential value by considering the normal producing life of the productive biological assets. Useful lives, estimated residual values and depreciation methods of productive biological assets are reviewed at least at each year-end. Any changes should be treated as changes in accounting estimates. For a productive biological asset that has been sold, damaged, dead or destroyed, any difference between the disposal proceeds and the carrying amount of the asset (after tax deduction) should be recognized in profit or loss for the period in which it arises. Service life and amortization method Intangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) and impairment losses (see Note 5.21). For an intangible asset with finite useful life, its cost estimated less residual value and accumulated impairment losses is amortized on the straight-line method over its estimated useful life, unless the intangible asset is classified as held for sale. The respective service life, determination basis, and amortization method for intangible assets are as follows: Item Useful life (years) Determination basis Amortization method Land use right 40 – 50 years Period of land use rights Straight-line method The shorter one of software Software use right 5 – 10 years service life or expected Straight-line method service life Trademark rights 10 years The shorter one of duration Straight-line method of trademark rights or Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Useful life (years) Determination basis Amortization method expected service life The useful life and amortization method of intangible assets with limited useful life are reviewed at least at each year-end. An intangible asset is regarded as having an indefinite useful life and is not amortized when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group. At the balance sheet date, the Group had intangible assets with infinite useful lives including the land use rights and trademarks. Land use rights with infinite useful lives are permanent land use rights with permanent ownership held by the Group under the relevant Chile and Australian laws arising from the Group"s acquisition of Ndomita Wine Company Chile Spa (“Chile Indomita Wine Group”), and the acquisition of Kilikanoon Estate Pty Ltd ( “ Australia Kilikanoon Estate ” ), therefore there was no amortization. The right to use trademark refers to the trademark held by the Group arising from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate with infinite useful lives. The valuation of trademark was based on the trends in the market and competitive environment, product cycle, and managing long-term development strategy. Those bases indicated the trademark will provide net cash flows to the Group within an uncertain period. The useful life is indefinite as it was hard to predict the period that the trademark would bring economic benefits to the Group. The initial cost of goodwill represents the excess of cost of acquisition over the acquirer"s interest in the fair value of the identifiable net assets of the acquiree under a business combination not involving entities under common control. Goodwill is not amortized and is stated in the balance sheet at cost less accumulated impairment losses (see Note 5.21). On disposal of an asset group or a set of asset groups, any attributable goodwill is written off and included in the calculation of the profit or loss on disposal. The Group recognizes expenses that have been incurred and whose benefit period exceeds one year as long-term deferred expenses. Long-term deferred expenses are amortized using a straight-line method within the benefit period. The respective amortization periods for such expenses are as follows: Item Amortization period Land acquisition fees 50 years Afforestation fees 5-20 years Renovation costs 3-5 years Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Others 3 years The carrying amounts of the following assets are reviewed at each balance sheet date based on internal and external sources of information to determine whether there is any indication of impairment: - fixed assets - construction in progress - right-of-use assets - intangible assets - productive biological asset - investment properties measured using a cost model - long-term equity investments - goodwill - long-term deferred expenses, etc. If any indication exists, the recoverable amount of the asset is estimated. In addition, the Group estimates the recoverable amounts of goodwill and intangible assets with infinite useful lives at each year-end, irrespective of whether there is any indication of impairment. Goodwill is allocated to each asset group, or set of asset groups, that is expected to benefit from the synergies of the combination for the purpose of impairment testing. The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its fair value (see Note 5.21) less costs to sell and its present value of expected future cash flows. An asset group is composed of assets directly related to cash-generation and is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or asset groups. The present value of expected future cash flows of an asset is determined by discounting the future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using an appropriate pre-tax discount rate. An impairment loss is recognized in profit or loss when the recoverable amount of an asset is less than its carrying amount. A provision for impairment of the asset is recognized accordingly. Impairment losses related to an asset group or a set of asset groups are allocated first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then to reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis. However, such allocation would not reduce the carrying amount of an asset below the highest of its fair value less costs to sell (if measurable), its present value of expected future cash flows (if determinable) and zero. Once an impairment loss is recognized, it is not reversed in a subsequent period. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unless otherwise specified, the Group measures fair value as follows: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring fair value, the Group takes into account the characteristics of the particular asset or liability (including the condition and location of the asset and restrictions, if any, on the sale or use of the asset) that market participants would consider when pricing the asset or liability at the measurement date, and uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to measure fair value. Valuation techniques mainly include the market approach, the income approach and the cost approach. If the obligation related to contingencies is a current obligation undertaken by the Group, and the performance of such obligation is likely to result in the outflow of economic benefits from the Group, and the relevant amount can be reliably measured, the Group will recognize the estimated liability. The estimated liabilities are initially measured based on the best estimate of the expenses required to fulfill the relevant current obligations. For assets that have a significant impact on the time value of money, the estimated liability is determined by discounting the estimated future cash flows. When determining the best estimate, the Group takes into account factors such as risks, uncertainties, and time value of money related to contingencies. If the required expenditure exists a continuous range, and the likelihood of various outcomes occurring within this range is the same, the best estimate is determined based on the median value within this range; and in other cases, the best estimate is handled as follows: - If the contingency involves a single item, it shall be determined based on the most likely amount to occur. - If the contingency involves multiple items, it shall be determined based on various possible outcomes and related probabilities. The Group reviews the carrying amount of estimated liabilities on the balance sheet date and adjusts the carrying amount based on the current best estimate. The share-based payment of this Group is equity-settled share-based payment. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report - Equity-settled share-based payment When the Group exchanges shares or other equity instruments for employee services, the equity instruments granted to employees shall be measured at fair value on the grant date. For share-based payment transactions that are immediately exercisable upon grant, the Group recognizes the fair value of equity instruments as relevant costs or expenses on the grant date, and increases capital reserves accordingly. For share-based payment transactions that can only be exercised after completing the vesting period for services or meeting the prescribed performance conditions after the grant, the Group will make the best estimate of the number of feasible equity instruments on each balance sheet date during the vesting period based on subsequent information such as changes in the number of feasible employees. Based on this, the services obtained in the current period will be included in relevant costs or expenses according to the fair value of the equity instruments on the grant date, and correspondingly included in capital reserves. When the Group accepts services but does not have settlement obligations, and the equity instruments granted to employees are those of the ultimate controlling party of the Company or its controlled subsidiaries other than the Group, the Group will treat this share-based payment plan as a share-based payment for equity settlement. Revenue refers to the gross inflow of economic benefits formed during the course of the ordinary activities of the Group, which may increase the shareholders" equities and is irrelevant to the invested capital of the shareholders. The Group recognizes the revenue upon fulfillment of its performance obligations in the contract, that is, the client obtains control right over the relevant goods or services. If there are two or more performance obligations under the contact, which shall be fulfilled, the Group will apportion the transaction price to various individual performance obligations in accordance with the relative proportion of separate selling prices of various goods or services under these performance obligations on the commencement date of the contract, and measure and recognize the revenue in accordance with the transaction prices apportioned to various individual performance obligations. The stand-alone selling price refers to the price at which the Group sells goods or provides services to customers separately. If the stand-alone selling price cannot be directly observed, the Group comprehensively considers all the relevant information that can be reasonably obtained, and uses observable input values to the greatest extent to estimate the stand-alone selling price. For contracts with quality assurance clauses, the Group analyzes the nature of the quality assurance provided. If quality assurance provides a separate service in addition to ensuring to the client that the goods sold meet the established standards, the Group will treat it as an individual performance obligation. Otherwise, the Group conducts accounting treatment in accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies. The transaction price refers to the amount of consideration that the Group expects to be entitled to receive due to the transfer of goods or services to the client, excluding payments Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportreceived on behalf of third parties. The transaction price recognized by the Group does notexceed the amount at which the accumulated recognized revenue will most likely not undergoa significant reversal when the relevant uncertainty is eliminated. In the event that there is asignificant financing part in the contract, the Group determines the transaction price based onthe amount payable in cash when the client obtains control right over the relevant goods orservices. The difference between the transaction price and the contract consideration shall beamortized by the effective interest method during the contract period. From the day of theenforcement of the contract, the Group expects that the interval between the client"sacquisition of control right over the goods or services and the client"s payment of the pricewill not exceed one year, regardless of the significant financing part in the contract.If the Group meets one of the following conditions, the fulfillment of its performanceobligations in a certain period will be deemed, or the fulfillment of its performanceobligations at a certain time point will be deemed:- The client obtains and consumes the economic benefits while the Group fulfills theperformance obligation;- The client manages to control the goods in process while the Group fulfills theperformance obligation.- Goods produced during the performance period have irreplaceable purposes and theGroup is entitled to charge money for the performance accumulated and has been finisheduntil the current time within the whole contract period.For any performance obligations fulfilled in a certain period, the Group will recognizerevenue within the certain period in accordance with the performance progress. If theperformance progress cannot be determined reasonably and costs incurred are expected to becompensated of the Group, the revenue will be ascertained according to the costs incurreduntil the performance progress is determined reasonably.In terms of performance obligations fulfilled at a certain time point, the Group will recognizerevenue when the client gains control right over the relevant goods or services. When itcomes to determining whether a client has acquired the control right over goods or services,the Group will consider the following conditions:- The Group has the current right to receive payment for the goods or services;- The Group has transferred the goods in kind to the client;- The Group has transferred the legal ownership of the product or the main risks andrewards of ownership to the client;- The client has accepted the goods or services, etc.For sales with sales return clauses, when the customer obtains control of the relevant goods,the Group recognizes revenue based on the amount of consideration expected to be entitled toreceive due to the transfer of goods to the customer (that is, does not include the expectedamount to be refunded due to sales return), and recognizes liabilities based on the expectedamount to be refunded due to sales returns. At the same time, based on the book value at thetime of transfer of the goods expected to be returned, the Group recognizes as an asset thebalance after deducting the estimated cost of recovering the goods (including the valueimpairment of the returned goods). On each balance sheet date, the Group re-estimates the Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report future sales returns. If there is any change, it shall be treated as a change in accounting estimates. The Group has transferred the goods or services to the client and thus has the right to receive corresponding consideration (and the right is dependable on factors other than time lapses) as contract asset, which is subject to provision of impairment on the basis of expected credit loss. The right enjoyed by the Group (only depends on time lapses) to receive consideration unconditionally from the client shall be presented under account receivables. The Group presents the obligation of transferring goods or services for the client due to the consideration received or receivable as contract liabilities. The specific accounting policies related to the main activities of the Group"s revenue are described as follows: The Group"s sales revenue mainly comes from dealer sales. The revenue will be recognized when the Group transfers control of the related products to the customer. According to the business contract, for these transfers, the time when the product is confirmed and signed by the customer shall be recognized as the confirming point of the sales revenue. Contract cost includes incremental cost for being awarded the contract and performance cost of the contract. Incremental cost for being awarded the contract refers to the cost that the Group would not need to pay if no such contracts are awarded (e.g. sales commissions, etc.) Where such cost is expected to be recovered, the Group shall take it as the contract acquisition cost and recognize it as an asset. Expenses incurred by the Group to be awarded contract other than incremental cost expected to be recovered shall be recognized in current profits and losses when incurred. Any cost incurred by the Group for the performance of any contract that doesn"t fall into the scope of other businesses specified in the Standard such as inventory, but meets the following conditions simultaneously, shall be taken as contract performance cost and recognized as an asset. - Where such cost is directly related to a current or anticipated contract, including direct labor cost, direct material cost, manufacturing expenses (or similar expenses), costs clearly specified to be borne by the customer and other costs incurred solely due to the contract; - Where such cost includes resources to be used by the Group to fulfill future performance obligations; - Where such cost is expected to be recovered. Assets recognized for contract acquisition cost and assets recognized for contract performance cost (hereinafter referred to as “ assets related to contract cost ” ) shall be amortized on the same basis as the revenue recognition of goods or services related to such assets and recognized in current profits and losses. Where the amortization period of assets Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report recognized for the contract acquisition cost does not exceed one year, they shall be recognized in current profits and losses. Where the book value of assets related to contract costs is higher than the difference between the following two items, the Group shall withdraw the impairment reserves of the excess part and recognize it as the asset impairment loss: - Residual consideration expected to be obtained arising from the transfer of goods or services related to the assets by the Group; - Cost estimated to be occurred for the transfer of the relevant goods or services. Employee wages or salaries, bonuses, social security contributions such as medical insurance, work injury insurance, maternity insurance and housing fund, measured at the amount incurred or accrued at the applicable benchmarks and rates, are recognized as a liability as the employee provides services, with a corresponding charge to profit or loss or included in the cost of assets where appropriate. Pursuant to the relevant laws and regulations of the People"s Republic of China, the Group participated in a defined contribution basic pension insurance plan in the social insurance system established and managed by government organizations. The Group makes contributions to basic pension insurance plans based on the applicable benchmarks and rates stipulated by the government. Basic pension insurance contributions payable are recognized as a liability as the employee provides services, with a corresponding charge to profit or loss or included in the cost of assets where appropriate. When the Group terminates the employment with employees before the employment contracts expire, or provides compensation under an offer to encourage employees to accept voluntary redundancy, a provision is recognized with a corresponding expense in profit or loss at the earlier of the following dates: - When the Group cannot unilaterally withdraw the offer of termination benefits because of an employee termination plan or a curtailment proposal; - When the Group has a formal detailed restructuring plan involving the payment of termination benefits and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Government grants are non-reciprocal transfers of monetary or non-monetary assets from the government to the Group except for capital contributions from the government in the capacity as an investor in the Group. A government grant is recognized when there is reasonable assurance that the grant will be received and that the Group will comply with the conditions attaching to the grant. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value. Government grants related to assets are grants whose primary condition is that the Group qualifying for them should purchase, construct or otherwise acquire long-term assets. Government grants related to income are grants other than those related to assets. A government grant related to an asset is recognized as deferred income and amortized over the useful life of the related asset on a reasonable and systematic manner as other income or non-operating income. A grant that compensates the Company for expenses or losses to be incurred in the future is recognized as deferred income, and included in other income or non-operating income in the periods in which the expenses or losses are recognized, or included in other income or non-operating income directly. Current tax and deferred tax are recognized in profit or loss except to the extent that they relate to a business combination or items recognized directly in equity (including other comprehensive income). Current tax is the expected tax payable calculated at the applicable tax rate on taxable income for the year, plus any adjustment to tax payable in respect of previous years. At the balance sheet date, current tax assets and liabilities are offset only if the Group has a legally enforceable right to set them off and also intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases, which include the deductible losses and tax credits carried forward to subsequent periods. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be utilized. Deferred tax is not recognized for the temporary differences arising in a single transaction that is not a business combination, and affects neither accounting profit nor taxable profit (or deductible loss) at the time of the transaction, and the initially recognized assets and Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report liabilities do not result in equal taxable temporary differences or deductible temporary differences. Deferred tax is not recognized for taxable temporary differences arising from the initial recognition of goodwill. At the balance sheet date, deferred tax is measured based on the tax consequences that would follow from the expected manner of recovery or settlement of the carrying amounts of the assets and liabilities, using tax rates enacted at the balance sheet date that are expected to be applied in the period when the asset is recovered or the liability is settled. The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to the extent that it is no longer probable that the related tax benefits will be utilized. Such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the following conditions are met: - the taxable entity has a legally enforceable right to offset current tax liabilities and current tax assets; - they relate to income taxes levied by the same tax authority on either: the same taxable entity; or different taxable entities which intend either to settle the current tax liabilities and current tax assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or deferred tax assets are expected to be settled or recovered. Lease refers to a contract in which it is agreed that the lessor conveys the use right of any asset to the lessee for a period of time in exchange for consideration. On the contract start date, the Group shall evaluate whether the contract is, or contains, a lease. Where either party thereto conveys the right to control the use of one or more identified assets for a period of time in exchange for consideration, the contract is, or contains a lease. To determine whether the contract conveys the right to control the use of identified assets for a period of time, the Group conducts the following assessments: - Whether the contract involves the use of an identified asset. An identified asset can be either explicitly specified in a contract, or implicitly when the asset is available to the customer and can be a physically distinct portion, or if some capacity or other portion of the asset is not physically distinct but substantially represents the full capacity of the asset, so that the customer obtains substantially all of the economic benefits from the use of the asset. If the supplier of the asset has the practical ability to substitute the asset throughout the period of use, the asset is not an identified asset; - Whether the lessee has the right to obtain substantially all of the economic benefits from the use of the identified asset throughout the period of use; and - Whether the lessee has the right to direct the use of an identified asset throughout this Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report period of use. If the contract contains multiple separate leases at the same time, the lessee and lessor will split the contract and have each separate lease separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time, the lessee and the lessor will split them separately. When splitting the lease and non-lease parts included in the contract, the lessee shall allocate the contract consideration according to the relative proportion of the sum of the stand-alone price of each lease part and the stand-alone price of each non-lease part. The lessor shall allocate the contract consideration in accordance with the provisions on transaction price allocation in the accounting policy stated in Note 5.22. Upon the commencement of the lease term, the Group recognizes right-of-use assets and lease liabilities for leases. The right-of-use assets are initially measured at cost, including initially measured amount of leased liability; amount of lease payments made on or before the commencement date of the lease term (the related amount of lease incentive having been enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to incur to disassemble and remove leased assets, restore the site where leased assets are located or restore leased assets to the agreed condition under the terms of the lease. The Group employs the straight-line method to depreciate right-of-use assets. Where it can be reasonably recognized that the ownership of leased assets will be obtained by the Group upon expiration of the lease term, leased assets will be depreciated during the service life; otherwise, leased assets will be depreciated during the lease term or the remaining service life of such leased assets by the Group, whichever is shorter. Right-of-use assets shall be provided for impairment in accordance with the accounting policies stated in Note 5.21. When initially calculating the present value of the unpaid lease payment at the commencement date of the lease term, the Group shall employ the interest rate implicit in the lease as the discount rate; where the interest rate implicit in the lease cannot be determined, the incremental lending rate of the Group shall be used as the discount rate. The Group calculates the interest expense of lease liabilities in each period of the lease term according to a fixed periodic rate, which will be included in current profits and losses or asset cost. The variable lease payment not included in the measurement of lease liabilities shall be recognized in current profits and losses and loss or related asset cost when they actually occur. In case of any of following circumstances after the commencement date of the lease term, the Group will re-measure lease liabilities at the present value of the lease payment after any change: - Where the amount payable anticipated changes according to the guaranteed residual value; - Where the index or ratio used for recognizing the lease payment changes; - Where there is a change in the Group"s assessment results of the option of purchase, renewal option or option of termination of lease or the actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with the original Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report assessment result. When the Group re-measures lease liabilities, the book value of right-of-use assets shall be adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero, but lease liabilities still need to be subject to further reduction, the remaining amount shall be recognized in current profits and losses. The Group does not recognize right-of-use assets and leased liabilities for short-term lease (lease with a lease term within 12 months) and lease of low-value assets. The Group shall include related lease payment into the current profits and losses or relevant asset costs according to the straight-line method in each period of the lease term. From the inception of lease, the Group will divide leases into finance lease and operating lease. Finance lease refers to a lease in which almost all the risks and returns related to the ownership of the leased asset are essentially transferred, regardless of whether the ownership is finally transferred or not. Operating lease refers to other leases except for the finance lease. When the Group is the sublease lessor, the sublease shall be classified based on the right-of-use assets arising from the original lease rather than the underlying assets of the original lease. If the original lease is a short-term lease and the Group elects to apply the above-mentioned simplified treatment of short-term lease to the original lease, the Group shall classify the sublease as an operating lease. For finance leases, from the commencement date of the lease term, the Group recognizes finance lease receivables for finance leases and derecognizes the finance lease assets. The Group regards the net investment in a lease as the entry value of finance lease receivables at the time of initial measurement of finance lease receivables. The net investment in a lease is the sum of the present value of unguaranteed residual value and rental receipts not received yet on the commencement date of the lease term which is subject to discounting at the interest rate implicit in the lease term. The Group calculates and recognizes the interest income in each period within the lease term according to a fixed periodic rate. Derecognition and impairment of finance lease receivables shall be subject to accounting treatment in accordance with the accounting policies stated in Note 5.10. The variable lease payment which is not included in the net investment in a lease shall be recognized in current profits and losses when it actually occurs. During each period of the lease term, the Group recognizes lease receipts from operating leases as rental revenue by using the straight-line method. The Group capitalizes initial direct costs pertaining to operating leases upon their occurrence, and apportions them as per the same basis used for recognizing the rental income within the lease term and includes them in current profits and losses by period. The variable lease receipts related to operating leases that are not included in the lease receipts shall be recognized in current profits and losses when they actually occur. The variable lease payment which is not included in the lease receipts shall be recognized in current profits and losses when it actually occurs. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report The Group classified a non-current asset or disposal group as held for sale when the carrying amount of a non-current asset or disposal group will be recovered through a sale transaction rather than through continuing use. A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together as a whole in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A non-current asset or disposal group is classified as held for sale when all the following criteria are met: - According to the customary practices of selling such asset or disposal group in similar transactions, the non-current asset or disposal group must be available for immediate sale in their present condition subject to terms that are usual and customary for sales of such assets or disposal groups; - Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has obtained a firm purchase commitment. The sale is to be completed within one year. Non-current assets or disposal groups held for sale are stated at the lower of carrying amount and fair value less costs to sell (except financial assets, deferred tax assets and investment properties subsequent measured at fair value initially and subsequently. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss in profit or loss. Dividends or profit distributions proposed in the profit appropriation plan, which will be approved after the balance sheet date, are not recognized as a liability at the balance sheet date but are disclosed in the notes separately. If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where two or more parties are subject to common control or joint control from another party, they are considered to be related parties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control only from the State and that have no other related party relationships are not regarded as related parties. In addition to the related parties stated above, the Group determines related parties based on the disclosure requirements of Administrative Procedures on the Information Disclosures of Listed Companies issued by the CSRC. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report The Group is principally engaged in the production and sales of wine, brandy, and sparkling wine in China, France, Spain, Chile and Australia. In accordance with the Group"s internal organization structure, management requirements and internal reporting system, the Group"s operation is divided into five parts: China, Spain, France, Chile and Australia. The management periodically evaluates segment results, in order to allocate resources and evaluate performances. In 2026, over 83% of revenue, more than 112% of profit and over does not need to disclose additional segment report information. The preparation of the financial statements requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates as well as underlying assumptions and uncertainties involved are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. For significant accounting estimates of this Company, see Notes 5.3, 7, 11 and 16. Nil Nil Tax category Taxation basis Tax rates Levied on the balance between the output tax 13%, 9%, 6% (China), 20% (France),Value added tax calculated based on taxable income and the input 21% (Spain), 19% (Chile), 10% tax allowed to be deducted in current period. (Australia)Consumption tax Levied on taxable income.City development Levied on circulation tax actually paid. 7% (China)taxCorporate income 25% (China), 25% (France), 28% Levied on taxable income.tax (Spain), 27% (Chile), 30% (Australia) Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Ningxia Changyu Grape Growing Co., Ltd. “ ( Ningxia Growing”), a subsidiary of the Group, engaged in grape growing, is incorporated in Yongning County, Ningxia Huizu Autonomous Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax Measures for Implementation, Ningxia Growing enjoys the preferential policy of an exemption of corporate income tax from grape cultivation income. Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company, engaged in grape growing, is incorporated in Zhifu District, Yantai City, Shandong Province. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax Measures for Implementation, Grape Growing enjoys the preferential policy of an exemption of corporate income tax from grape cultivation income. Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co., Ltd. (“R&D and Growing ” ), a branch of the Company, engaged in grape growing, is incorporated in YEDA, Shandong Province. According to Clause 27 of PRC Corporate Income Tax and Clause 86 of PRC Corporate Income Tax Measures for Implementation, R&D and Growing enjoys the preferential policy of an exemption of corporate income tax from grape cultivation income. Beijing Changyu AFIP Agriculture Development Co., Ltd. (“Agriculture Development”), a subsidiary of the Group, engaged in grape growing, is incorporated in Miyun County, Beijing. According to clause 27 of the Corporate Income Tax Law of the People"s Republic of China and clause 86 of the Implementation Rules of Enterprise Income Tax Law of the People"s Republic of China, Agriculture Development enjoys the preferential policy of an exemption of corporate income tax from grape cultivation income. Xinjiang Baron Balboa Chateau Co., Ltd. (“Shihezi Chateau”), a subsidiary of the Company, is an enterprise of bulk grape wine production and sale and finished bottled grape wine sale incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission (Announcement No. 23 [2020] of the Ministry of Finance), Shihezi Chateau is qualified to enjoy preferential taxation policies, which means it can pay corporate income tax at a preferential rate of 15% for the period from Ningxia Chateau Changyu Longyu Estate Co., Ltd. (referred to as “Ningxia Chateau”), a subsidiary of the Company, is an enterprise of finished bottled grape wine production and sale incorporated in Yinchuan City, Ningxia Huizu Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission (Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Chateau is qualified to enjoy preferential taxation policies, which means it can pay corporate income tax at a preferential rate of 15% for the period from Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportChangyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is anenterprise of bulk grape wine production and sale incorporated in Yinchuan City, NingxiaHuizu Autonomous Region. In accordance with Announcement on Continuing the EnterpriseIncome Tax Policies for the Large-Scale Development of Western China of the Ministry ofFinance, the State Taxation Administration and the National Development and ReformCommission (Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Wine isqualified to enjoy preferential taxation policies, which means it can pay corporate income taxat a preferential rate of 15% for the period from 2021 to 2030.According to Enterprise Income Tax Law of the People"s Republic of China and itsImplementing Regulations, and Announcement of the Ministry of Finance and the StateTaxation Administration on the Tax Policies for Further Supporting the Development ofMicro and Small Enterprises and Individual Industrial and Commercial Households(Announcement No. 12 of [2023] of the Ministry of Finance and the State TaxationAdministration), for micro and small enterprises that meet the applicable conditions, thetaxable income for the year shall be calculated at a reduced rate of 25% of the annual taxableincome, and the enterprise income tax shall be paid at the applicable tax rate of 20%. BeijingChangyu Wine Industry Marketing Co., Ltd. “ ( Beijing Allotting”), a subsidiary of the Group,has been identified as eligible small low-profit enterprise.According to the provisions of the Announcement of the Ministry of Finance and the StateTaxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers fromValue-Added Tax (Announcement No. 19 of [2023] of the Ministry of Finance and the StateTaxation Administration), from January 1, 2024 to December 31, 2027, small-scale VATtaxpayers subject to a levy rate of 3% on taxable sales income will enjoy a reduced VAT rateof 1%; and prepaid VAT items that are subject to a 3% pre-levy rate will enjoy a reduced VATprepayment rate of 1%. Xinjiang Changyu Sales Co., Ltd. Weimeisi Tasting Center Branchenjoys this preferential tax policy.According to the provisions of the Announcement of the Ministry of Finance and the StateTaxation Administration on Further Strengthening the Implementation of the PoliciesRegarding the Refund of Term-End Excess Input Value-Added Tax Credits (AnnouncementNo. 14 of [2022] of the Ministry of Finance and the State Taxation Administration), it willfurther strengthen the implementation of the refund of term-end excess input value-added taxcredits and expand the industry scope of the policy of fully refunding the excess inputvalue-added tax credits. This Company and eligible subsidiaries have enjoyed the refund ofterm-end excess input value-added tax credits.According to the Announcement of the Ministry of Finance and the State TaxationAdministration on the Tax Policies for Further Supporting the Development of Micro andSmall Enterprises and Individual Industrial and Commercial Households (Announcement No.are subject to a 50% reduction for small-scale VAT taxpayers, small low-profit enterprises,and individual industrial and commercial households: resource tax (excluding water resourcetax), urban maintenance and construction tax, property tax, urban land use tax, stamp duty(excluding stamp duty on securities transactions), cultivated land occupation tax, as well aseducation surcharge and local education surcharge. Some of the Company"s subsidiaries areeligible for the reduction. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Ending Balance Beginning BalanceCash on hand 4,468 18,877Bank deposit 2,063,172,936 1,884,759,212Other monetary capital 20,040,897 5,833,715Total 2,083,218,301 1,890,611,804 Including: Total overseas deposits 53,522,383 70,392,228As on June 30, 2026, the bank deposits of the Group including short-term fixed deposits rangingfrom 3 months to 12 months amounted to RMB 60,650,000 yuan, with the interest rates rangingfrom 1.15% to 1.85% (December 31, 2025: RMB 45,650,000 yuan).As at June 30, 2026, the details of other monetary funds are listed as follows: Unit: yuan Item Ending Balance Beginning Balance Deposit investment funds for stock repurchase 15,126,345 Account balance of Alipay 904,552 1,723,715 Guaranty money for bank platform 4,010,000 4,110,000 Total 20,040,897 5,833,715As on June 30, 2026, the Group does not have any special interest arrangements such asestablishing joint fund management accounts with related parties.Classification of bills receivable Item Ending Balance Beginning Balance Bank acceptance bills 100,000 102,342 Total 100,000 102,342The above bills receivable are all due within one year. Unit: yuan Age Ending book balance Beginning book balance Within 1 year (including 1 year) 167,506,271 269,602,415 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Over 3 years 2,323,159 2,227,844 Total 171,863,704 272,877,730As on June 30, 2026, the accounts receivable with ownership restrictions were RMB 76,263,655yuan (December 31, 2025: 73,330,179 yuan). Please refer to Note 7.20 for details. Unit: yuan Ending Balance Name Book balance Provision for bad debts Accrued proportionReceivable from relatedpartiesOther customers 171,357,704 8,289,862 4.84%Total 171,863,704 8,291,178 -- Unit: yuan Ending Balance Beginning Balance Provision for bad Provision for bad Book balance Book balance Type debts Book debts Book Accrued value Accrued value Amount Proportion Amount Amount Proportion Amount proportion proportionAccountsreceivable forwhichprovision forbad debts isaccrued on asingle itembasisAccountsreceivable forwhichprovision for 171,863,704 100% 8,291,178 4.8% 163,572,526 272,877,730 100% 7,945,006 2.9% 264,932,724bad debts isaccrued on acombined basisTotal 171,863,704 100% 8,291,178 4.8% 163,572,526 272,877,730 100% 7,945,006 2.9% 264,932,724Provision for bad debts accrued in this period: Unit: yuan Changes in this period Beginning Type Withdrawn or Ending Balance Balance Accrual Cancelled Others transferred back Provision for 7,945,006 346,172 8,291,178 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report bad debts is accrued on a combined basis Total 7,945,006 346,172 8,291,178Nilranked by ending balance Unit: yuan Ending balance of Percentage in total Ending balance of bad debts Ending balance Ending ending balance of accounts provision and Unit Name of accounts balance of accounts receivable and provision for receivable contract assets receivable and contract assets impairment of contract assets contract assets THE CO-OP FOOD GROUP ALLIANCE WINE CO LTD Beijing JD Century Information Technology 6,602,173 6,602,173 3.8% 17,175 Co., Ltd. Kingsland Wines and Spirits SLIGRO B.V. 3,584,148 3,584,148 2.1% 249,452 Total 31,068,277 31,068,277 18.10% 1,498,845NilNil Unit: yuan Item Ending Balance Beginning BalanceBills receivable 222,487,233 228,073,841 Total 222,487,233 228,073,841 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportNil Type Amount derecognized at end of periodBank acceptance bills 99,609,132 Total 99,609,132As on June 30, 2026, bills endorsed by the Group to other parties which are not yet due is RMBto suppliers and constructions. The Group believes that due to good reputation of bank, the risk ofnotes not accepting by bank on maturity is very low, therefore derecognize the note receivablesendorsed. If the bank is unable to pay the notes on maturity, according to the relevant laws andregulations of China, the Group would undertake limited liability for the notes. Unit: yuan Ending Balance Beginning Balance Age Amount Proportion Amount ProportionWithin 1 year 14,483,906 99.84% 52,950,895 98%Over 3 yearsTotal 14,506,780 -- 54,011,809 -- Unit: yuan Percentage in Relationship Reason for the total Client type with the Amount Age unsettlement advance Group payment % Xinjiang Muyun Yafeng Prepaid Wine Co., Ltd. Third party 6,867,700 Within 1 year payment for 47.3% goods Qingdao International Airport Prepaid Group Co., Ltd. Third party 2,459,489 Within 1 year payment for 17.0% rent Xinjiang Yuyuan Wine Co., Prepaid Ltd. Third party 985,322 Within 1 year payment for 6.8% goods Shandong Jinzhou Health Prepaid Industry Co., Ltd. Third party 758,960 Within 1 year payment for 5.2% goods Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Percentage in Relationship Reason for the total Client type with the Amount Age unsettlement advance Group payment % Shandong JD Kuaixing Prepaid Supply Chain Technology Third party 681,785 Within 1 year payment for 4.7% Co., Ltd. freight Total -- 11,753,256 -- 81% Unit: yuan Item Ending Balance Beginning BalanceInterests receivableDividends receivableOther receivables 113,246,526 127,713,309Total 113,246,526 127,713,309Other receivables Unit: yuan Nature Ending book balance Beginning book balanceCompensation receivable from the disposalof vineyardsLand acquisition and storage receivable 31,768,902 31,768,902Consumption tax and added-value taxexport rebateDeposit and guaranty money receivable 5,515,747 5,868,084Housing maintenance fund 2,703,605 2,703,605Imprest receivable 59,938 45,182Others 2,684,007 9,239,177Total 134,809,141 150,284,639 Unit: yuan Age Ending Balance Beginning BalanceWithin 1 year (including 1 year) 21,345,621 32,124,454Over 3 years 33,289,781 32,744,950Total 134,809,141 150,284,639 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Changes in this period Beginning Withdrawn or Type Write-off or Ending Balance Balance Accrual transferred Others transfer back back Accrual 22,571,330 -1,008,715 21,562,615 Total 22,571,330 -1,008,715 21,562,615The provision for bad debts accrued in this period was RMB -1,008,715 yuan; and that withdrawnor transferred back in this period was RMB 0 yuan.Nil Unit: yuan Percentage in total Ending ending balance of balance of Unit Name Nature Ending Balance Age other accounts provision for receivable bad debtsLaizhou Zhuqiao Town Compensation receivablePeople"s Government, from the disposal of 72,666,088 1-2 years 53.9% 7,266,609Laizhou Yidao Town People"sGovernment vineyardsYEDA Natural Resources and Land acquisition andPlanning Bureau reserve funds Value-added tax andServicio de Impuestos consumption tax export 18,201,339 Within 1 year 13.5%Internos rebateYantai Municipal Finance Housing maintenance fund 2,703,605 2-3 years 2.0%BureauShanghai Ruihong New Town Within 1 year, Deposit 629,071 0.5%Co., Ltd. 2-3 yearsTotal -- 125,969,005 93.5% 21,562,615NilNilNil Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Ending Balance Beginning Balance Item Depreciation Depreciation Book balance Book value Book balance Book value provision provisionRaw materials 121,010,599 121,010,599 277,656,519 277,656,519Goods in process 2,123,027,358 2,123,027,358 1,876,067,662 1,876,067,662CommoditystocksTotal 2,807,679,565 13,978,824 2,793,700,741 2,852,827,984 16,750,775 2,836,077,209 Unit: yuan Increase in this period Decrease in this period Beginning Item Transfer back or Ending Balance Balance Accrual Others Others write-offRaw materialsGoods in processCommoditystocksTotal 16,750,775 13,978,824 16,750,775 13,978,824 Unit: yuan Item Ending Balance Beginning BalanceAccounts receivable return cost 26,452 7,166,025Prepaid corporate income tax 17,264,190 3,745,396Deductible input tax 47,227,375 61,109,041Expense to be amortized 2,204,505 2,140,474Total 66,722,522 74,160,936 Unit: yuan Movements during the period Beginning Investment Ending Beginning gains and Ending balance of Other Declare Accrual balance of balance Increase losses Other balance Investee provision Decrease comprehensive cash provision provision (book in recognized equity Others (book for in capita income dividend for for value) capital under the changing value) impairment adjustment or profit impairment impairment equity method Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportSAS L&MHoldings( “ L&MHoldings”)Subtotal 24,933,742 6,233,435 -3,261,023 21,672,719 6,233,435ShanghaiYufeng BrandManagementCo., Ltd. 394,840 75 394,915( “ ShanghaiYufeng ” )(Note 1)YantaiGuolongWineIndustry Co., 757,369 -30,841 726,528Ltd. (“YantaiGuolong ” )(Note 1)TaizhouChangyuChateau Wine 570,246 -7,309 562,937Sales Co.,Ltd. (Note 2)Subtotal 1,722,455 -38,075 1,684,380Total 26,656,197 6,233,435 -3,299,098 23,357,099 6,233,435Note 1: The Group has appointed one director to each of these investees.Note 2: The Group has appointed two directors to each of these investees. Unit: yuan Houses and Construction in Item Land use right Total buildings progressI Original book valueassets\ construction in progress Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Houses and Construction in Item Land use right Total buildings progressII. Accumulated depreciation &accumulated amortizationIII. Impairment provisionIV. Book value Unit: yuan Item Ending Balance Beginning Balance Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Ending Balance Beginning BalanceFixed assets 5,183,660,371 5,308,778,632Disposal of fixed assetsTotal 5,183,660,371 5,308,778,632 Unit: yuan Transportation Item Houses and buildings Machinery equipment Total equipmentI. Original book value:periodconstruction in progressincreaseperiodretirementII. AccumulateddepreciationperiodperiodretirementIII. Impairment provisionperiodperiodretirementIV. Book value Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Transportation Item Houses and buildings Machinery equipment Total equipmentvalueAs on June 30, 2026, the net value of the fixed assets with ownership restrictions was RMBdetails. Unit: yuan Original book Accumulated Depreciation Item Book value Remarks value depreciation reservesMachinery equipment 29,423,698 19,060,315 10,363,383Total 29,423,698 19,060,315 10,363,383Nil Unit: yuan Item Ending book valueBuilding 82,179,569Machinery equipment 931 Unit: yuan Reason for not receiving the property Item Book value certificateDormitory building, main building andreception building of Longue Chanson 240,300,463 Under transactionChateauEuropean town, main building and servicebuilding of Chateau AFIPChangyu (Ningxia) winemakingfermentation workshop and warehouseOffice building, laboratory building andworkshop of Fermentation CenterWine-making workshop of Changyu(Jingyang)Finished goods warehouse and workshopof Kylin PackagingOthers 699,039 Under transaction Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportTotal 394,387,610 Unit: yuan Item Ending Balance Beginning BalanceConstruction in progress 6,350,167 4,313,088Engineering materialsTotal 6,350,167 4,313,088 Unit: yuan Ending Balance Beginning Balance Item Depreciation Depreciation Book balance Book value Book balance Book value reserves reservesRenovation of LongueChanson ChateauRenovation of thecourtyard of Changyu 827,934 827,934 702,063 702,063MuseumProjects of othercompaniesTotal 6,350,167 6,350,167 4,313,088 4,313,088 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Transferred Including: Transferred Proportion of Accumulative to long-term capitalized Capitalization Beginning Increase in to fixed Ending accumulative capitalizedProject name Budget unamortized amount of ratio of interest in Capital source Balance this period assets in this Balance project input in amount of expenses in interest in this period period budget interest this period this periodRenovation ofLongueChansonChateauRenovation ofthe courtyardof ChangyuMuseumAs on June 30, 2026, there was no indication for impairment of construction in progress of the Group, so no provision for impairment wasmade. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Plantation Item Total Immature MatureⅠ Original book value The immature turn to the mature -557,450 557,450Ⅱ Accumulated depreciationⅢ Impairment provisionⅣ Book valueAs on June 30, 2026, no ownership of the biological assets was restricted.As on June 30, 2026, there was no indication for impairment of biological assets of the Group, so Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportno provision was made. Unit: yuan Item Building Land TotalⅠ Original book value:Ⅱ Accumulated amortizationⅢ Impairment provisionⅣ Book value Unit: yuan Item Land use right Software use right Trademark TotalⅠ Original book value Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Land use right Software use right Trademark TotalincreaseⅡ Accumulated amortizationⅢ Impairment provisionⅣ Book valueAs on June 30, 2026, no ownership of the intangible assets was restricted.Nil Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Decrease in this Increase in this period period Name of the invested unit or matter forming Beginning Formed by Ending Balance goodwill Balance business Others Disposal Others mergerAtrio Group 92,391,901 92,391,901Indomita Wine Company Chile, SpA 6,870,115 6,870,115Kilikanoon Estate, Australia 37,063,130 37,063,130 Total 136,325,146 136,325,146 Unit: yuan Decrease in this Name of the invested unit or matter forming Beginning Increase in this period period Ending Balance goodwill Balance Accrual Others Disposal OthersAtrio Group 11,225,459 11,225,459Kilikanoon Estate, Australia 37,063,130 37,063,130 Total 48,288,589 48,288,589 Unit: yuan Increase in this Amortization in this Item Beginning Balance Other decreases Ending Balance period periodLand acquisitionfeesAfforestation fees 93,231,556 4,211,467 89,020,089Renovation costs 145,524,347 2,239,998 5,837,785 141,926,560Others 4,098,180 1,455,024 253,839 5,299,365Total 283,227,056 3,695,022 11,102,904 275,819,174 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Ending Balance Beginning Balance Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference assets difference assetsAsset impairmentprovisionUnrealized profits frominter-company 285,073,741 71,268,435 416,323,375 104,080,844transactionsDeductible loss 256,753,084 62,887,496 250,789,836 61,117,483Unpaid bonus 104,455,919 26,113,980 120,048,950 30,012,237Dismission welfare 4,105,978 1,026,494 5,316,990 1,329,247Deferred income 15,793,091 3,344,574 19,386,932 4,151,683Influence of leasingstandardsTotal 722,524,747 178,840,549 871,295,522 215,680,654 Unit: yuan Ending Balance Beginning Balance Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax difference liabilities difference liabilitiesAssets appraisalappreciation in businesscombination undernon-common controlInfluence of leasingstandardsTotal 24,470,099 6,296,958 22,950,585 6,613,894 Unit: yuan Item Ending Balance Beginning BalanceDeductible temporary difference Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportDeductible loss 613,512,549 546,736,496Total 613,512,549 546,736,496 Unit: yuan Year Ending sum Beginning sum RemarksTotal 613,512,549 546,736,496 -- Unit: yuan Ending Balance Beginning Balance Item Depreciation Depreciation Book balance Book value Book balance Book value reserves reserves Advance payment for 43,735 43,735 43,735 43,735 construction Total 43,735 43,735 43,735 43,735 Unit: yuan Ending Beginning Item Restriction Restriction Book Restriction Restriction Book balance Book value Book value type state balance type state Security SecurityMonetarycapital etc. etc.Fixed Mortgage Mortgageassets loan loanAccounts Factoring Factoringreceivable restricted restrictedTotal 126,927,122 112,070,660 124,093,646 111,606,173 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Ending Balance Beginning BalanceMortgage loan 164,805,355 158,792,031Guaranteed loan 8,283,492 13,364,220Fiduciary loan 71,263,217 68,518,537Total 244,352,064 240,674,788• As on June 30, 2026, EUR mortgage loan was EUR 9,818,807 (equivalent of RMB 76,263,655yuan) (December 31, 2025: EUR 8,904,156, equivalent of RMB 73,330,179 yuan) of accountsreceivable factoring business handled by Hacienday Vinedos Marques del Atrio, S.L.U. (“Atrio”)with banks including Banco Santander, BBVA, and Bankinter;• As on June 30, 2026, USD loan was USD 13,000,000 (equivalent of RMB 88,541,700 yuan)(December 31, 2025: USD 12,125,000, equivalent of RMB 85,461,852 yuan) of loans borrowed byChile Indomita Wine Group from Banco Scotiabank and Banco de Chile with the fixed assets ascollateral.•As on June 30, 2026, AUD guaranteed loan was AUD 1,770,000 (equivalent of RMB 8,283,492yuan) (December 31, 2025: AUD 2,850,000, equivalent of RMB 13,364,220 yuan) borrowed byAustralia Kilikanoon Estate. Unit: yuan Item Ending Balance Beginning BalanceAccounts payable for materials, etc. 313,132,902 321,932,168Total 313,132,902 321,932,168 Unit: yuan Item Ending Balance Beginning BalanceAdvances from customers 115,718,391 134,708,926Withholding of goods with sales rebate 358,537 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportTotal 115,718,391 135,067,463 Unit: yuan Item Beginning Balance Increase in this period Decrease in this period Ending Balancedefined contribution planyearTotal 162,525,617 187,158,152 220,939,042 128,744,727 Unit: yuan Item Beginning Balance Increase in this period Decrease in this period Ending Balanceand subsidies Including: Medical insurance 198,433 6,200,606 6,388,895 10,144 Injury insurance 70 484,395 484,425 40 MaternityinsurancefeeabsencesMinus: Those divided intonon-current liabilitiesTotal 156,887,202 158,124,714 190,376,747 124,635,169 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Beginning Balance Increase in this period Decrease in this period Ending BalanceinsuranceinsurancepaymentTotal 321,425 26,147,832 26,465,677 3,580 Unit: yuan Increase in Decrease in this Item Beginning Balance Ending Balance this period period relation Total 5,316,990 2,885,606 4,096,618 4,105,978 Unit: yuan Item Ending Balance Beginning BalanceValue added tax 19,712,909 27,831,972Consumption tax 17,060,369 42,140,635Corporate income tax 77,102,948 69,531,572Individual income tax 2,173,786 786,256City development tax 2,191,839 4,495,333Education surcharges 1,589,313 3,221,254Urban land use tax 2,247,092 2,302,126Others 7,906,498 8,249,786Total 129,984,754 158,558,934 Unit: yuan Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Ending Balance Beginning BalanceInterest payableDividends payable 388,355Other payable 310,626,635 332,855,775Total 311,014,990 332,855,775 Unit: yuan Item Ending Balance Beginning BalanceOrdinary stock dividendsPreferred stock dividends/sustainable debtdividends divided into equity instrumentsOthers 388,355Total 388,355 Unit: yuan Item Ending Balance Beginning BalanceDealer"s deposit payable 151,174,880 156,861,946Equipment purchase and construction costspayableTransportation charges payable 5,384,865 18,179,784Trademark use fee payable 9,139,135 17,082,233Advertisement expenses payable 41,910,743 43,523,608Employee cash deposit 309,282 1,480,476Supplier"s deposit payable 15,129,135 16,393,705Contracting fees payable 8,347,970 3,942,153Repurchase of treasury stock fundspayableOthers 30,138,458 25,987,369Total 310,626,635 332,855,775As on June 30, 2026, there were no other large accounts payable aged more than one year. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Ending Balance Beginning BalanceLong-term loans due within one year 68,225,594 65,453,059Bonds payable due within one yearLong-term accounts payable due withinone yearLease liabilities due within one year 13,770,516 9,987,851Total 81,996,110 75,440,910 Item Ending Balance Beginning BalanceRefund payable 34,564 7,613,210Unamortized VAT amount 15,043,391 19,580,652Total 15,077,955 27,193,862 Unit: yuan Item Ending Balance Beginning BalanceFiduciary loan 112,853,706 117,827,899Minus: Long-term loans due within oneyearTotal 44,628,112 52,374,840As on June 30, 2026, fiduciary loans (EUR) were EUR 14,529,709 (equivalent of RMBborrowed by Atrio from banks including Banco Santander, BBVA, Caja Rural de Navarr, and CaixaBank. Unit: yuan Item Ending Balance Beginning Balance Long-term lease liabilities 61,158,186 29,425,681 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Minus: Lease liabilities due within one year Total 47,387,670 19,437,830 Unit: yuan Increase in this Decrease in this Item Beginning Balance Ending Balance Forming reason period period Governmental subsidy Total 19,386,932 3,593,841 15,793,091Projects related to governmental subsidy: Unit: yuan Amount of Amount Amount subsidy included in Amount Beginning offset the Other Item of liabilities newly non-operating included in Ending balance balance cost changes increased in revenue in this other income expenses this period periodIndustrial developmentsupporting fundsSubsidy for retaining wall 8,402,190 622,571 7,779,619 Related to assetsXinjiang industrial revitalizationand technological 5,688,000 711,000 4,977,000 Related to assetstransformation projectSpecial funds for efficientwater-saving irrigation projectSubsidy for economic andenergy-saving technological 128,300 64,150 64,150 Related to assetstransformation projectsSubsidy for scenic spotconstructionImprovement of public servicefacilities in scenic spotSubsidy for research andindustrialization of domestic oak 177,355 177,355 Related to incomeaging technologyTotal 19,386,932 3,593,841 15,793,091 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Increase or decrease (+,-) in this period Share Newly transferred Item Beginning Balance Allocated Ending Balance issued from Others Subtotal shares shares accumulation fundTotal shares 657,240,128 657,240,128 Unit: yuan Item Beginning Balance Increase in this period Decrease in this period Ending BalanceCapital premium (share capitalpremium)Other capital reserves 30,610,824 30,610,824Total 364,048,502 364,048,502 Item Beginning Balance Increase in this period Decrease in this period Ending BalanceRepurchase ofB-sharesRepurchase ofrestricted stockTotal 37,880,941 34,873,655 72,754,596•The fifth meeting of the tenth session of the Board of Directors was held on April 16, 2026, andthe 2025 Annual General Meeting of Shareholders was held on May 22, 2026. The Plan forRepurchasing Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company wasreviewed and approved. According to the above-mentioned B-share repurchase plan, the Companywill implement the repurchase of domestic listed foreign shares (B-shares) through centralizedbidding trading, taking into account its own financial and operating conditions, with a totalrepurchase capital of RMB 67.4 million – 100 million yuan and a repurchase price not exceedingHKD 11.49 per share. The repurchase period shall not exceed 12 months from the date of approvalof share repurchase plan by the shareholders" meeting. The number of shares to be repurchased shallnot be less than 10 million shares and shall not exceed 15 million shares. The repurchased sharesshall be cancelled and the registered capital of the Company shall be correspondingly reduced. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportAs of June 30, 2026, the Company has repurchased a total of 4,830,000 domestic listed foreignshares (B-shares) through centralized bidding method via a special securities account for sharerepurchase, accounting for 0.7349% of the Company"s current total share capital. The totaltransaction amount was equivalent to RMB 34,873,655 yuan. Unit: yuan Amount incurred in this period Minus: amount Minus: amount included in Amount included in other other Minus: Attributable Attributable Beginning incurred comprehensive Ending Item comprehensive income to parent to minority Balance before income before Balance income before tax company shareholders income tax in and transferred to and transferred expenses after tax after tax this period profit or loss in to retained this period earnings in this periodincome not to be reclassifiedinto profit and loss laterIncluding: Changes afterre-measuring and resettingthe benefit plans Other comprehensiveincome not to be reclassifiedinto profit and loss underequity method Changes in the fairvalue of other investments inequity instruments Changes in the fairvalue of the enterprise"s owncredit riskincome to be reclassified into -16,329,710 -13,172,537 -11,755,124 -1,417,413 -28,084,834profit and loss laterIncluding: Othercomprehensive income to bereclassified into profit andloss under equity method Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Amount incurred in this period Minus: amount Minus: amount included in Amount included in other other Minus: Attributable Attributable Beginning incurred comprehensive Ending Item comprehensive income to parent to minority Balance before income before Balance income before tax company shareholders income tax in and transferred to and transferred expenses after tax after tax this period profit or loss in to retained this period earnings in this period Changes in the fairvalue of other debtinvestments Amount of financialassets reclassified into othercomprehensive income Provision for creditimpairment of other creditinvestments Provision for cash-flowhedge Difference in translationof Foreign Currency -16,329,710 -13,172,537 -11,755,124 -1,417,413 -28,084,834Financial StatementTotal other comprehensive -16,329,710 -13,172,537 -11,755,124 -1,417,413 -28,084,834income Unit: yuan Item Beginning Balance Increase in this period Decrease in this period Ending BalanceLegal surplus reserves 342,732,000 342,732,000Free surplus reservesReserve fundEnterprise expansionfundOthersTotal 342,732,000 342,732,000 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item This period Prior periodUndistributed profit at the end of prior periodbefore adjustmentTotal undistributed profit at the beginning of theperiod before adjustment (increase listed with+ ,and decrease listed with -)Undistributed profit at the beginning of the periodafter adjustmentPlus: Net profit for owner of the parent company 140,515,805 185,597,142Minus: Drawn legal surplus Drawn free surplus Drawn common risk provision Common dividend payable 164,310,032 268,729,560 Common dividend transferred to sharecapitalUndistributed profit at the end of period 9,013,643,371 9,149,795,952 Unit: yuan Amount incurred in this period Amount incurred in prior period Item Income Cost Income CostMain business 1,535,630,780 641,722,223 1,434,469,813 579,755,809Others businesses 37,073,973 12,993,176 36,106,364 13,050,449Total 1,572,704,753 654,715,399 1,470,576,177 592,806,258Including: Income from contracts 1,569,880,471 652,432,942 1,467,719,364 590,459,268Income from house rents 2,824,282 2,282,457 2,856,813 2,346,990 Unit: yuanContract classification Operating income Operating costType of merchandise Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportContract classification Operating income Operating cost- Alcoholic beverage 1,535,630,780 641,722,223- Others 34,249,691 10,710,719Classified by the time of merchandise transfer- Revenue recognized at a point in time 1,569,880,471 652,432,942 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodConsumption tax 70,730,210 58,563,215City development tax 12,001,548 8,879,061Education surcharges 8,602,508 6,439,043Building tax 17,347,380 17,414,976Land use tax 5,018,507 4,925,917Vehicle and vessel use tax 13,457 10,536Stamp duty 1,481,666 1,437,117Others 256,249 181,575Total 115,451,525 97,851,440 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodLabor cost 126,706,728 119,403,300Marketing expenses 165,264,594 130,423,949Labor expenses 17,428,750 15,252,966Depreciation expenses 31,272,848 30,786,813Storage expenses 11,813,394 11,354,031Advertisement expenses 37,780,989 29,798,339Trademark use fee 6,470,914 5,451,141Travel expenses 13,046,687 12,906,974Design & production expenses 5,937,874 4,921,771Conference expenses 3,467,275 3,000,702Water, electricity and gas charges 5,352,813 5,414,402Others 34,167,070 33,436,428Total 458,709,936 402,150,816 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Amount incurred in this period Amount incurred in prior periodLabor cost 27,880,794 28,938,791Depreciation expenses 46,504,022 49,771,088Contracting expenses 2,007,300 2,007,300Repair expenses 2,528,735 2,342,841Office expenses 11,108,550 11,028,310Amortization expenses 7,980,721 7,922,805Afforestation fees 6,749,041 6,736,148Safe production costs 1,704,862 2,553,903Business entertainment expenses 1,066,264 1,375,182Public security & clean-keeping expenses 3,366,899 3,333,559Travel expenses 803,896 972,756Others 9,674,602 9,665,276Total 121,375,686 126,647,959 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodR&D expenses 9,923,137 9,071,966Total 9,923,137 9,071,966 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodInterest expenditure 8,320,670 5,528,569Minus: Interest income 8,050,884 5,914,026Plus: Commission charges 397,357 514,469Exchange gain or loss 10,803,525 -14,776,944Total 11,470,668 -14,647,932 Unit: yuan Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Source of other income Amount incurred in this period Amount incurred in prior periodIndustrial development supporting funds 2,050,000 2,050,000Xinjiang industrial revitalization andtechnological transformation projectSubsidy for retaining wall 622,571 569,000Other – related to assets 210,270 293,247Special funds for supporting corporatedevelopmentTalent development fund 860,000Regional sales incentive fund 4,110,000Special funds for commercial and tradedevelopmentOther – related to income 510,470 6,331,199Total 8,354,311 19,258,546 Unit: yuan Amount incurred in prior Item Amount incurred in this period periodIncome from long-term equity investment by equity method -3,299,098 -3,018,088Investment income from disposal of long-term equityinvestmentInvestment income gained from trading financial assets duringthe holding periodInvestment income gained from disposal of trading financialassetsDividend income gained from other equity instruments duringthe holding periodGains generated from the remaining equity remeasured as perfair value after the loss of controlInterest income gained from equity investment during theholding periodInterest income gained from other equity investments duringthe holding periodInvestment income gained from disposal of other equity Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Amount incurred in prior Item Amount incurred in this period periodinvestmentsTotal -3,299,098 -3,018,088 Unit: yuan Item Amount incurred in this period Amount incurred in prior period Loss on bad debts of accounts receivable -346,172 1,549,058 Loss on bad debts of other receivable 1,008,715 Total 662,543 1,549,058 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodInventory falling price loss and loss onimpairment of contract execution costTotal 2,771,951 -2,093,965 Unit: yuan Source of income from asset disposal Amount incurred in this period Amount incurred in prior periodIncome from disposal of fixed assets 25,845 361,014Total 25,845 361,014 Unit: yuan Amount included in the current Item Amount incurred in this period Amount incurred in prior period non-recurring profits/lossesGains on exchange ofnon-monetary assetsGrains on donationsGovernmental subsidyGains on scrap of non-current 22,743 23,894 22,743 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Amount included in the current Item Amount incurred in this period Amount incurred in prior period non-recurring profits/lossesassetsOthers 2,676,722 893,739 2,676,722Total 2,699,465 917,633 2,699,465 Unit: yuan Amount incurred in this Amount incurred in Amount included in the current Item period prior period non-recurring profits/lossesLoss on exchange of non-monetary assetsDonation 20,000Loss on scrap of non-current assets 9,622 26,032 9,622Fine, penalty and overdue fine 154,720 520,698 154,720Others 101,286 22,633 101,286Total 265,628 589,363 265,628 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodCurrent income tax expenses 32,378,104 48,268,623Deferred income tax expenses 36,523,169 33,497,152Total 68,901,273 81,765,775 Unit: yuan Item Amount incurred in this periodTotal profit 212,007,791Income tax expenses calculated according to the legal/applicable tax rate 53,001,948Influence of different tax rates applicable to subsidiary 45,132Influence of income tax in the term before adjustment -1,385,806Influence of nontaxable incomeInfluence of non-deductible costs, expenses and losses 856,535Influence of deductible loss from use of unconfirmed deferred income tax -1,076,495 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Amount incurred in this periodassets in prior periodInfluence of deductible temporary difference or deductible loss ofunconfirmed deferred income tax assets in this periodIncome tax expense 68,901,273Refer to Note 7.35 for details. Unit: yuan Item Amount incurred in this period Amount incurred in prior periodGovernmental subsidy income 4,760,470 19,205,955Interest income 7,454,029 4,736,095Net amercement income 24,629 91,304Others 5,814,621 9,735,484Total 18,053,749 33,768,838 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodSelling expenses 177,953,254 201,918,055Administrative expenses 28,688,003 31,309,835Others 11,465,833 11,493,063Total 218,107,090 244,720,953 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodCash paid for repurchasing B shares 34,873,655 7,150,483Cash paid for leasing 11,228,570 11,087,384Total 46,102,225 18,237,867 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportChanges in various liabilities arising from financing activities Unit: yuan Ending Increase in this period Decrease in this period Beginning Balance Item Balance Cash Non-cash Non-cash Cash movement movement movement movementShort-term borrowings 240,674,788 212,652,932 200,768,497 8,207,159 244,352,064Long term loans (includinglong-term liabilities due within one 117,827,899 35,164,161 33,436,810 6,701,544 112,853,706year)Lease liabilities (including leaseliabilities due within one year)Other payables - dividends payable 164,698,387 164,310,032 388,355Other payables - interest payable 7,133,634 7,133,634Other payables - accounts payablefor repurchasing treasury sharesOther payables – repurchasing BsharesTotal 425,809,309 247,817,093 249,666,751 451,751,198 14,908,703 456,633,252 Unit: yuan Supplementary materials Amount in this period Amount in prior periodadjusting the net profit: Net profit 143,106,518 191,314,730 Plus: Provision for impairment of assets -3,434,494 544,907 Depreciation of fixed assets, oil-and-gas assetsand productive biological assets Depreciation of right-of-use assets 9,398,965 9,436,272 Amortization of intangible assets 8,318,339 8,550,554 Amortization of long-term deferred expenses 11,102,904 11,085,844 Losses on disposal of fixed assets, intangible -25,845 -361,014assets and other long-term assets (profit listed with “-”) Losses on retirement of fixed assets (profit -13,121 2,138listed with Losses “-”) on fair value change (profit listed with“-”) Financial costs (profit listed with “-”) 9,085,807 2,812,883 Investment losses (profit listed with “-”) 3,299,098 3,018,088 Decrease in deferred income tax assets 36,840,105 34,008,220(increase listed with “-”) Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Supplementary materials Amount in this period Amount in prior period Increase of deferred income tax liabilities -316,936 -511,068(decrease listed with “-”) Decrease in inventories (increase listed with 45,148,419 -57,846,816“-”) Decrease in operating receivables (increase 160,466,438 141,442,102listed with Increase “-”) in operating payable (decrease listed -157,014,484 -259,290,500with “-”) Others Net cash flows from operating activities 418,235,893 239,421,128involving Debt cash depositinto transferred andassets withdrawal: Convertible corporate bond due within one year Fixed assets under financing lease Ending balance of cash 2,017,179,106 1,778,740,634 Minus: Beginning balance of cash 1,839,128,089 1,717,727,551 Plus: Ending balance of cash equivalent Minus: Beginning balance of cash equivalent Net increase amount of cash and cash equivalent 178,051,017 61,013,083 Unit: yuan Item Ending Balance Beginning BalanceIncluding: Cash on hand 4,468 18,877 Bank deposits available for payment at anytime Other monetary funds available for paymentat any time Deposits with central bank available forpaymentIncluding: Bond investment due within threemonthsof period Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Ending balance at foreign Converted exchange rate Ending balance at RMBMonetary capital 18,123,421Including: USD 256,605 6.8109 1,747,711 EUR 135,837 7.7671 1,055,060 HKD 17,507,344 0.86855 15,206,004 CAD 23,961.00 4.7847 114,646Accounts receivable 43,562,238Including: USD 4,726,226 6.8109 32,189,853 EUR 167,724 7.7671 1,302,729 GBP 241,080 4.7847 1,153,495 CAD 989,091 9.0145 8,916,161Short-term borrowings 88,541,700Including: USD 13,000,000 6.8109 88,541,700 EUR HKD -- --currency in the main economic environment in which they operate. The functional currency of Atrioand Francs Champs Participations SAS (“Farshang Holdings”) is Euro, the functional currency ofChile Indomita Wine Group is Chilean Peso, and the functional currency of Australia KilikanoonEstate is Australian Dollar. Item Amount incurred in this period Amount incurred in prior periodEmployee compensation 2,608,406 2,336,948Test and laboratory fees 906,487 175,737Consulting fees 1,101,703 1,546,712Consumption of materials 2,253,742 1,188,000Others 3,052,799 3,824,569Total 9,923,137 9,071,966Including: Expensing research and developmentexpenses Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Capitalized research and developmentexpensesIn the reporting period, there was no change in the consolidation scope of the Group. Principal Proportion of Registered Registration Business Acquisition Name of subsidiary business shareholding capital place nature mode location Direct Indirect Acquired from a businessHACIENDA Y VINEDOS MARQUES EUR2,000,000 Navarre, Spain Navarre, Spain Sales 90 combinationDEL ATRIO,S.L. (“Atrio”) under non-common control Acquired byINDOMITA WINE COMPANY CHILE CLP31,100,000,000 Santiago, Chile Santiago, Chile Sales 85 establishmentSpA.(“Indomita Chile”) or investment Acquired from a businessKilikanoon Estate Pty Ltd. ( “ Australia Adelaide, Adelaide, AUD6,420,000 Sales 99 combinationKilikanoon Estate”) Australia Australia under non-common control Acquired byBeijing Changyu Sales and Distribution RMB1,000,000 Beijing, China Beijing, China Sales 100 establishmentCo., Ltd. (“Beijing Sales”) or investment Acquired byYantai Kylin Packaging Co., Ltd. (“Kylin Yantai, Yantai, Manufacturing RMB15,410,000 100 establishmentPackaging”) Shandong, China Shandong, China industry or investment Acquired byYantai Chateau Changyu-Castel Co., Ltd. Yantai, Yantai, Manufacturing USD5,000,000 70 establishment(“Chateau Changyu”) (a) Shandong, China Shandong, China industry or investment Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Principal Proportion of Registered Registration Business Acquisition Name of subsidiary business shareholding capital place nature mode location Direct Indirect Acquired byChangyu (Jingyang) Wine Co., Ltd. Xianyang, Xianyang, Manufacturing RMB1,000,000 90 10 establishment(“Jingyang Wine”) Shaanxi, China Shaanxi, China industry or investment Acquired byYantai Changyu Pioneer Wine Sales Co., Yantai, Yantai, RMB8,000,000 Sales 100 establishmentLtd. (“Sales Company”) Shandong, China Shandong, China or investment Acquired byShanghai Changyu Sales and Distribution RMB1,000,000 Shanghai, China Shanghai, China Sales 100 establishmentCo., Ltd. (“Shanghai Sales”) or investmentBeijing Changyu AFIP Agriculture Acquired by Miyun, Beijing, Miyun, Beijing,Development Co., Ltd. ( “ Agriculture RMB1,000,000 Sales 100 establishment China ChinaDevelopment”) or investment Acquired byBeijing Chateau Changyu AFIP Global Manufacturing RMB642,750,000 Beijing, China Beijing, China 91.53 establishmentCo., Ltd. (“AFIP”) (b) industry or investment Acquired byYantai Changyu Wine Sales Co., Ltd. Yantai, Yantai, RMB5,000,000 Sales 90 10 establishment(“Wines Sales”) Shandong, China Shandong, China or investment Acquired byYantai Changyu Pioneer International Yantai, Yantai, RMB5,000,000 Sales 70 30 establishmentCo., Ltd. (“Pioneer International”) Shandong, China Shandong, China or investment Acquired byHangzhou Changyu Wine Sales Co., Ltd. Hangzhou, Hangzhou, RMB 500,000 Sales 100 establishment(“Hangzhou Changyu”) Zhejiang, China Zhejiang, China or investment Acquired byNingxia Changyu Grape Growing Co., Yinchuan, RMB1,000,000 Ningxia, China Plantation 100 establishmentLtd. (“Ningxia Growing”) Ningxia, China or investment Acquired byHuanren Changyu National Wines Sales Benxi, Liaoning, Benxi, Liaoning, RMB2,000,000 Sales 100 establishmentCo., Ltd. (“National Wines”) China China or investment Acquired byLiaoning Changyu Golden Icewine Valley Benxi, Liaoning, Benxi, Liaoning, Manufacturing RMB64,687,300 100 establishmentCo., Ltd. (“Golden Icewine Valley”) China China industry or investmentYantai Development Zone Changyu Acquired by Yantai, Yantai,Trading Co., Ltd. ( “ Development Zone RMB5,000,000 Sales 100 establishment Shandong, China Shandong, ChinaTrading”) or investmentBeijing AFIP Meeting Center (“Meeting RMB 500,000 Miyun, Beijing, Miyun, Beijing, Services 100 Acquired by Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Principal Proportion of Registered Registration Business Acquisition Name of subsidiary business shareholding capital place nature mode location Direct IndirectCenter”) China China establishment or investment Acquired byBeijing AFIP Tourism and Culture Miyun, Beijing, Miyun, Beijing, RMB 500,000 Tourism 100 establishment(“AFIP Tourism”) China China or investment Acquired byChangyu (Ningxia) Wine Co., Ltd. Manufacturing RMB1,000,000 Ningxia, China Ningxia, China 100 establishment(“Ningxia Wine”) industry or investment Acquired byYantai Changyu Chateau Tinlot Co., Ltd. Yantai, Yantai, Wholesale and RMB400,000,000 65 35 establishment(“Chateau Tinlot”) Shandong, China Shandong, China retail or investment Acquired byXinjiang Chateau Changyu Baron Balboa Shihezi, Shihezi, Manufacturing RMB550,000,000 100 establishmentCo., Ltd. (“Chateau Shihezi”) Xinjiang, China Xinjiang, China industry or investment Acquired byNingxia Chateau Changyu Longyu Estate Yinchuan, Yinchuan, Manufacturing RMB2,000,000 100 establishmentCo., Ltd. (“Chateau Ningxia”) Ningxia, China Ningxia, China industry or investmentShaanxi Changyu Chateau Longue Acquired by Xianyang, Xianyang, ManufacturingChanson Co., Ltd. (“Chateau Longue RMB20,000,000 100 establishment Shaanxi, China Shaanxi, China industryChanson”) or investmentYantai Changyu Wine Research, Acquired by Yantai, Yantai, ManufacturingDevelopment, and Manufacturing Co., RMB805,000,000 100 establishment Shandong, China Shandong, China industryLtd. (“R&D Company”) or investment Acquired byXinjiang Changyu Wine Sales Co., Ltd. Shihezi, Shihezi, RMB10,000,000 Sales 100 establishment(“Xinjiang Sales”) Xinjiang, China Xinjiang, China or investment Acquired byNingxia Changyu Trading Co., Ltd. Yinchuan, Yinchuan, RMB1,000,000 Sales 100 establishment(“Ningxia Trading”) Ningxia, China Ningxia, China or investmentShaanxi Changyu Longue Chanson Acquired by Xianyang, Xianyang,Wine Sales Co., Ltd. (“ Longue Chanson RMB3,000,000 Sales 100 establishment Shaanxi, China Shaanxi, ChinaSales”) or investment Acquired byPenglai Changyu Wine Sales Co., Ltd. Penglai, Penglai, RMB5,000,000 Sales 100 establishment(“Penglai Wine”) Shandong, China Shandong, China or investmentLaizhou Changyu Wine Sales Co., Ltd. Laizhou, Laizhou, Acquired by RMB1,000,000 Sales 100(“Laizhou Sales”) Shandong, China Shandong, China establishment Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Principal Proportion of Registered Registration Business Acquisition Name of subsidiary business shareholding capital place nature mode location Direct Indirect or investment Acquired byFrancsChampsParticipationsSAS Investment EUR32,000,000 Bordeaux, France Bordeaux, France 100 establishment(“Francs Champs”) and trading or investment Acquired byYantai Roullet Fransac Wine Sales Co., Yantai, Yantai, RMB1,000,000 Sales 100 establishmentLtd. (“Yantai Roullet Fransac”) Shandong, China Shandong, China or investment Acquired byYantai Changyu Wine Sales Co., Ltd. Yantai, Yantai, RMB5,000,000 Sales 100 establishment(“Wine Sales Company”) Shandong, China Shandong, China or investmentShaanxi Chateau Changyu Longue Acquired by Xianxin, Shaanxi, Xianxin, Shaanxi,Chanson Tourism Co., Ltd. ( “ Chateau RMB1,000,000 Tourism 100 establishment China ChinaLongue Chanson”) or investment Acquired byLongkou Changyu Wine Sales Co., Ltd. Yantai, Yantai, RMB1,000,000 Sales 100 establishment(“Longkou Sales”) Shandong, China Shandong, China or investmentYantai Changyu Cultural Tourism Acquired by Yantai, Yantai,Development Co., Ltd. ( “ Changyu RMB10,000,000 Tourism 100 establishment Shandong, China Shandong, ChinaCultural Tourism Company”) or investment Acquired byYantai Changyu Wine Culture Museum Yantai, Yantai, RMB 500,000 Tourism 100 establishmentCo., Ltd. (“Museum”) Shandong, China Shandong, China or investment Acquired byYantai Changyu Cultural Tourism Product Yantai, Yantai, RMB5,000,000 Tourism 100 establishmentSales Co., Ltd. (“Cultural Sales”) Shandong, China Shandong, China or investmentYantai Changyu Window of International Acquired by Yantai, Yantai,Wine City Co., Ltd. (“Window of Wine RMB60,000,000 Tourism 100 establishment Shandong, China Shandong, ChinaCity”) or investment Acquired byYantai Chateau Koya Brandy Co., Ltd. Yantai, Yantai, Manufacturing RMB10,000,000 100 establishment(“Chateau Koya”) Shandong, China Shandong, China industry or investmentChangyu (Shanghai) International Digital Acquired by Hongkou, Hongkou,Marketing Center Co., Ltd. ( “ Digital RMB50,000,000 Sales 100 establishment Shanghai, China Shanghai, ChinaMarketing”) or investment Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Principal Proportion of Registered Registration Business Acquisition Name of subsidiary business shareholding capital place nature mode location Direct IndirectShanghai Changyu Guoqu Digital Acquired by Hongkou, Hongkou,Technology Co., Ltd. ( “ Shanghai RMB6,000,000 Sales 51 establishment Shanghai, China Shanghai, ChinaGuoqu”) or investment Acquired byShanghai Changyu Yixin Digital Hongkou, Hongkou, RMB10,000,000 Sales 51 establishmentTechnology Co., Ltd. (“Shanghai Yixin”) Shanghai, China Shanghai, China or investment Acquired byYantai Christon Catering Co., Ltd. Yantai, Yantai, RMB1,000,000 Services 100 establishment(“Christon Catering”) Shandong, China Shandong, China or investmentWeimeisi (Shanghai) Enterprise Acquired byDevelopment Co., Ltd. ( “ Weimeisi RMB10,000,000 Shanghai, China Shanghai, China Sales 100 establishmentShanghai”) or investment Acquired byNingxia Longyu Food Trading Co., Ltd. Yinchuan, Yinchuan, RMB 500,000 Sales 100 establishment(Longyu Trading) Ningxia, China Ningxia, China or investment Acquired byBeijing Changyu Trading Co., Ltd. Miyun, Beijing, Miyun, Beijing, RMB 500,000 Sales 100 establishment(“BeijingTrading”) China China or investmentHuanren Manchu Autonomous County Acquired by Benxi, Liaoning, Benxi, Liaoning,Changyu Wine Sales Co., Ltd. (“Huanren RMB2,000,000 Sales 100 establishment China ChinaSales”) or investmentShanghai Changyu Yixin Yida Acquired by Hongkou, Hongkou,E-commerce Co., Ltd. (“Shanghai Yixin RMB 500,000 Services 100 establishment Shanghai, China Shanghai, ChinaYida”) or investmentExplanation for difference between the proportion of shareholding and proportion of voting powerin the subsidiaries:(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreign investor, accounting for 70% of Changyu Chateau"s equity interest. Through agreement arrangement, the Group has the full power to control Changyu Chateau"s strategic operating, investing and financing policies. The agreement arrangement will be terminated on December(b) AFIP is a limited liability company jointly established by the Group and Yantai De"an Investment Co., Ltd. and Beijing Qinglang Ecological Agriculture Technology Development Co., Ltd. The Group holds 91.53% of its equity. Through agreement arrangement, the Group Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report has the full power to control AFIP"s strategic operating, investing and financing policies. The agreement arrangement will be terminated on September 2, 2027. Unit: yuan Other Profit/loss Dividend declared Shareholding comprehensive attributable to to be distributed Balance of minority proportion of income attributable Name of subsidiary minority to minority equity at the end of minority to minority shareholders in this shareholders in period shareholders shareholders in this period this period periodAFIP 8.47% 56,409,393Indomita Chile 15% -612,475 -745,914 56,431,050Explanation for difference between the proportion of shareholding and proportion of voting powerof the minority shareholders in the subsidiaries: See details in Note 10.1.1. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Ending Balance Beginning BalanceName of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total Total assets Total assets assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilitiesAFIP 261,019,767 345,824,399 606,844,166 14,713,051 3,648,980 18,362,031 264,880,703 354,205,457 619,086,160 19,136,401 3,645,340 22,781,741Indomita Chile 206,849,623 308,969,971 515,819,594 123,586,692 8,468,264 132,054,956 239,483,768 306,248,010 545,731,778 144,442,947 8,468,264 152,911,211 Unit: yuan Amount incurred in this period Amount incurred in prior period Name of subsidiary Operating Total comprehensive Total comprehensive Net profits Operating cash flow Operating income Net profits Operating cash flow income income incomeAFIP 29,693,513 -7,822,284 -7,822,284 16,061,546 41,907,720 -610,475.00 -610,475.00 1,061,336Indomita Chile 70,363,515 -4,083,170 -9,055,929 5,350,197 78,447,574 1,891,672 6,001,476 1,874,075 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportSummary financial information of unimportant joint ventures and associates Unit: yuan Ending balance / amount incurred Beginning balance / amount incurred in this period in prior period Joint ventures: -- -- Total book value of investment 21,672,719 24,933,742 Total of the following items calculated -- according to the shareholding ratio -- Net profit -3,261,023 -2,545,542 -- Other comprehensive income -- Total comprehensive income -3,261,023 -2,545,542 Associates: -- Total book value of investment 1,684,380 1,722,455 Total of the following items calculated according to the shareholding ratio -- Net profit -38,075 -472,546 -- Other comprehensive income -- Total comprehensive income -38,075 -472,546 The Group has exposure to the following main risks from its use of financial instruments in the normal course of the Group"s operations: - Credit risk - Liquidity risk - Interest rate risk - Foreign currency risk The following mainly presents information about the Group"s exposure to each of the above risks and their sources, their changes during the year, and the Group"s objectives, policies and processes for measuring and managing risks, and their changes during the year. The Group aims to seek appropriate balance between the risks and benefits from its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the Group"s financial performance. Based on such objectives, the Group"s risk management policies are established to identify and analyze the risks faced by the Group, to Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group"s activities. Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Group"s credit risk is primarily attributable to cash at bank, receivables, debt investments and derivative financial instruments entered into for hedging purposes. Exposure to these credit risks are monitored by management on an ongoing basis. The cash at bank of the Group is mainly held with well-known financial institutions. Management does not foresee any significant credit risks from these deposits and does not expect that these financial institutions may default and cause losses to the Group. As on June 30, 2026, the Group"s maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties. In order to minimize the credit risk, the Group has adopted a policy to ensure that all sales customers have good credit records. According to the policy of the Group, credit review is required for clients who require credit transactions. In addition, the Group continuously monitors the balance of account receivable to ensure there"s no exposure to significant bad debt risks. For transactions that are not denominated in the functional currency of the relevant operating unit, the Group does not offer credit terms without the specific approval of the Department of Credit Control in the Group. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Group considers that the Group"s credit risk is significantly reduced. Since the Group trades only with recognized and creditworthy third parties, there is no requirement for collateral. Concentrations of credit risk are managed by customer/counterparty, by geographical region and by industry sector. As on June 30, 2026, 18.1% of the Group trade receivables are due from top five customers (December 31, 2025: 37.5%). There is no collateral or other credit enhancement on the balance of the trade receivables of the Group. Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are settled by delivering cash or another financial asset. The Group and its individual subsidiaries are responsible for their own cash management, including short-term investment of cash surpluses and the raising of loans to cover expected cash demands (subject to approval by the Group"s board when the borrowings exceed certain predetermined levels). The Group"s policy is to regularly monitor its liquidity requirements and its compliance with lending covenants, to ensure that it maintains sufficient reserves of cash, readily realizable marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short and longer term. Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flow interest rate risk and fair value interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate interest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating rate exposure. (1) As on June 30, 2026, the Group held the following interest-bearing financial instruments: Fixed rate instruments: Unit: yuan June 30, 2026 December 31, 2025 Item Effective interest rate Amount Effective interest rate Amount Financial assets - Monetary capital 1.15%-1.85% 60,650,000 1.30% - 2.25% 45,650,000 Financial liabilities ? ? - Short-term loans 5.30% - 5.55% -88,541,700 5.34% - 5.85% -92,510,252 - Long-term loans (including the portion due within one year) - Lease liabilities (including the portion due within one year) Total -99,334,986 4.65% -80,545,590 Variable rate instruments: Unit: yuan June 30, 2026 December 31, 2025 Item Effective interest rate Amount Effective interest rate Amount Financial assets - Monetary capital 0.05% - 0.55% 2,022,563,833 0.01% - 0.55% 1,843,219,212 Financial liabilities - Short-term loans 1-year LRP-0.89% -50,000,000 1-year LPR - 0.89% -50,000,000 - Short-term loans BBSW+1.5% -8,283,492 BBSW + 1.5% -13,364,220 - Short-term loans 2.75% - 3.65% -97,526,872 2.20% - 3.90% -84,800,316 - Long-term loans (including the portion due within one year) Total 1,764,184,863 1,581,486,434 (2) Sensitivity analysis Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Management of the Group believes interest rate risk on bank deposit is not significant, therefore does not disclose sensitivity analysis for interest rate risk. As on June 30, 2026, based on assumptions above, it is estimated that a general increase of 50 basis points in interest rates, with all other variables held constant, would decrease the Group"s equity by RMB 484,461 yuan (2025: RMB 981,498 yuan), and net profit by RMB 484,461 yuan (2025: RMB 981,498 yuan). The sensitivity analysis above indicates the instantaneous change in the net profit and equity that would arise assuming that the change in interest rates had occurred at the balance sheet date and had been applied to re-measure those financial instruments held by the Group which expose the Group to fair value interest rate risk at the balance sheet date. In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on the net profit and equity is estimated as an annualized impact on interest expense or income of such a change in interest rates. In respect of cash at bank and on hand, accounts receivable and payable, short-term loans denominated in foreign currencies other than the functional currency, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. (1) As at June 30, 2026, the Group"s exposure to currency risk arising from recognised assets or liabilities denominated in foreign currencies is presented in the following tables. For presentation purposes, the amounts of the exposure are shown in Renminbi, translated using the spot rate at the balance sheet date. Differences resulting from the translation of the financial statements denominated in foreign currency are excluded. Unit: yuan June 30, 2026 December 31, 2025 Item Balance at foreign Balance at RMB Balance at foreign Balance at RMBMonetary capital 18,123,421 873,531 6,189,815 - USD 256,605 1,747,711 832,131 5,848,885 - EUR 135,837 1,055,060 41398 340929 - HKD 17,507,344 15,206,004 2 1 - CAD 23,961 114,646Short-term borrowings 88,541,700 92,510,252 - USD 13,000,000 88,541,700 13,125,000 92,510,252 (2) Sensitivity analysis Assuming all other risk variables remained constant, a 5% strengthening of the Renminbi against the US dollar and Euro at June 30, 2026 would have impact on the Group"s equity and net profit by the amount shown below, whose effect is in Renminbi and translated using the spot rate at the year-end date: Unit: yuan Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Item Equity Net profitsJune 30, 2026 USD 4,339,699 4,339,699 EUR -52,753 -52,753 HKD -760,300 -760,300 CAD -5,732 -5,732Total 3,520,914 3,520,914December 31, 2025 USD 3,253,771 3,253,771 EUR -12,543 -12,543 HKDTotal 3,241,228 3,241,228 A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30, 2026 would have had the equal but opposite effect to the amounts shown above, on the basis that all other variables remained constant. All financial assets and financial liabilities held by the Group are carried at amounts not materially different from their fair value at June 30, 2026. Proportion of Proportion of voting Name of parent shareholding of the powers of the parent Registration place Business nature Registered capital company parent company in company in the the Company Company Manufacturing Changyu Group Yantai City 50,000,000 52.56% 52.56% industry From January to June 2026, there was no fluctuation in the registered capital of the parent company and its share in equity interest and voting right. See particulars of the subsidiaries of the Company in Note 10. Other joint ventures and associates that have related party transactions with the Group during Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report this period or that formed balance when having related party transactions with the Group during the prior period are as follows: Name of joint ventures and associates Relationship with the CompanyL&M Holdings Joint venture of the GroupShanghai Yufeng Brand Management Co., Ltd. ( “ Shanghai Associates of the GroupYufeng”)Yantai Guolong Wine Industry Co., Ltd. (“Yantai Guolong”) Associates of the GroupTaizhou Changyu Wine Sales Co., Ltd. (“Taizhou Changyu”) Associates of the Group Relationship between other related parties and the Name of other related parties CompanyYantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company Appointment of directors, supervisors and seniorYantai Zhongya Zhibao Pharmaceutical Co., Ltd. (“Zhongya Zhibao”) executives of the GroupSociete Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) Subsidiaries of the joint ventureCHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint ventureYantai Changyu Wine Culture Museum Co., Ltd. (“Museum”) Non-profit organizations related to the CompanyservicesList of purchasing goods/receiving services Unit: yuan Related parties Related transactions Amount incurred in this period Amount incurred in prior periodGod Horse Packing Purchasing goods 23,255,290 27,190,017Zhongya Zhibao Purchasing goods 12,676 24,837French Mirefleurs Purchasing goods 3,048,363 8,051,588Shanghai Yufeng Purchasing goods 154,593 25,442List of selling goods/providing services Unit: yuan Amount incurred in this Related parties Related transactions Amount incurred in prior period period Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Amount incurred in this Related parties Related transactions Amount incurred in prior period periodZhongya Zhibao Selling goods 2,617,658 2,223,769God Horse Packing Selling goods 472 3,008Shanghai Yufeng Selling goods 1,006,025 344,063Taizhou Changyu Selling goods 5,631,827 8,489,159The price of transactions between the Group and the related parties are based on the negotiatedprice.NilThe Group as a lessor: Unit: yuan Rental income recognized in Rental income recognized in prior Name of the lessee Type of leased assets this period periodGod Horse Packing Office building and plant 746,275 746,275Zhongya Zhibao Office building 464,220 481,905 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportThe Group as a lessee: Unit: yuan Rental expenses for Variable lease payments not short-term leases and leases included in the measurement Interest expenses on Right-of-use assets of low-value assets of Rent paid of lease liabilities (if lease liabilities assumed increased simplified treatment (if applicable) Name of the lessor Type of leased assets applicable) Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount incurred incurred in incurred incurred incurred in incurred in incurred in incurred in incurred in incurred in in this prior in prior in prior prior period this period prior period this period this period this period period period period period Office building, plant, Changyu Group 7,480,362 7,480,362 680,841 185,036 commercial building Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportNilNilNil Unit: yuan Related parties Amount incurred in this Amount incurred in prior Item period periodChangyu Group Trademark use fee 6,470,914 5,451,141The price of transactions between the Group and the related parties are based on thenegotiated price. Unit: yuan Ending Balance Beginning Balance Project name Related parties Provision for bad Provision for bad Book balance Book balance debts debts Accounts Zhongya Zhibao 506,000 1,316 receivable Unit: yuan Project name Related parties Ending book balance Beginning book balance Accounts payable God Horse Packing 11,200,416 25,095,928 Accounts payable Zhongya Zhibao 1,572,709 Accounts payable Shanghai Yufeng 61,365 Accounts payable French Mirefleurs 744,426 Liabilities of contracts Taizhou Changyu 1,817,674 Liabilities of contracts Yantai Guolong 51,696 51,696 Liabilities of contracts God Horse Packing 11,835 11,835 Liabilities of contracts Changyu Group 41,964 41,964 Other payable Changyu Group 7,992,555 17,082,233 Other payable God Horse Packing 400,000 400,000 Other payable Yantai Guolong 50,000 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Other payable Zhongya Zhibao 2,960,553According to the resolution of 2022 Annual General Meeting of Shareholders held by theGroup on May 26, 2023, and the approved Proposal on 2023 Restricted Stock Incentive Plan(Draft) of the Company and Its Abstract and Proposal on Requesting the General Meeting ofShareholders to Authorize the Board of Directors to Handle Matters Related to 2023Restricted Stock Incentive Plan of the Company, and the Proposal on Adjusting RelevantMatters of 2023 Restricted Stock Incentive Plan and the Proposal on Granting RestrictedStocks to Incentive Objects of 2023 Restricted Stock Incentive Plan, which were reviewed andapproved at the first 2023 extraordinary board meeting held on June 26, 2023, the Group hasdetermined June 26, 2023 as the grant date to grant 6,850,000 restricted stocks to 204incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects inthis Group actually subscribed for 6,785,559 restricted stocks, with a grant price of 15.24yuan per stock. This transaction increased the registered capital by RMB 6,785,559 yuan andincreased the capital reserve by RMB 96,626,360 yuan.All restricted stocks granted to incentive objects are subject to different lock-up periods,which are 12 months, 24 months, and 36 months respectively from the completion of grantregistration of restricted stocks granted to incentive objects. The restricted stocks granted toincentive objects under this incentive plan shall not be transferred, used as collateral, or usedto repay debts during the lock-up period. All restricted stocks granted to incentive objects willbe unlocked in three phases after 12 months from the grant date, with unlocking ratios ofand 3 years from the grant date. The actual unlocking quantity shall be linked to the annualperformance evaluation.When the performance of this Company meets corresponding conditions, the unlocking ratioof the above-mentioned restricted stocks for the current period is determined based on theoperating performance of the incentive object"s unit and the value contribution of theincentive object. If the unlocking conditions stipulated in this plan are not met, the incentiveobject shall not unlock restricted stocks in the current period, and the Company shallrepurchase them according to the grant price to incentive object.The Group held its second 2024 Remuneration Committee meeting of the Board of Directors,its fourth 2024 extraordinary board meeting, and its second 2024 extraordinary SupervisoryCommittee meeting on July 22, 2024. The meetings reviewed and approved the Proposal onAchievement of the First Lifting of Lock-up Period and Lifting of Lock-up Conditions forCompany"s 2023 Restricted Stock Incentive Plan and Proposal on the Repurchase andCancellation of Part of the Restricted Shares under the Company"s 2023 Restricted StockIncentive Plan and Adjustment of the Repurchase Price. At the third extraordinary generalshareholders" meeting held on August 8, 2024, the resolution on the Proposal on theRepurchase and Cancellation of Part of the Restricted Shares under the Company"s 2023Restricted Stock Incentive Plan and Adjustment of the Repurchase Price was approved. Atotal of 172 incentive recipients of the first tranche of restricted shares in 2024 have beenlifted from the lock-up conditions, the number of restricted stocks that can be lifted is Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportconditions is August 6, 2024. This transaction resulted in a decrease in treasury shares ofRMB 26,220,343 yuan. A total of 425,666 restricted shares were repurchased and cancelled,including 157,790 shares repurchased and cancelled because the incentive recipients nolonger met the conditions of the Company"s 2023 Restricted Stock Incentive Plan due toresignation or position changes, and 267,876 shares repurchased and cancelled because theycould not be lifted from the first lock-up period due to personal performance assessmentresults. This transaction led to a decrease in share capital of RMB 425,666 yuan, a decreasein capital reserve of RMB 6,061,484 yuan, and a decrease in treasury shares of RMBThe Group held its third 2025 Remuneration Committee meeting, its second meeting of thetenth session of the Board of Directors, and its first meeting of the ninth session of theSupervisory Committee on July 25, 2025. The meetings reviewed and approved the Proposalon the Non-fulfillment of Conditions for the Second Release Tranche under the Company"sPart of the Restricted Shares under the Company"s 2023 Restricted Stock Incentive Plan andAdjustment of the Repurchase Price. At the first extraordinary general shareholders" meetingheld on August 12, 2025, the resolution on the Proposal on the Repurchase and Cancellationof Part of the Restricted Shares under the Company"s 2023 Restricted Stock Incentive Planand Adjustment of the Repurchase Price was approved. A total of 2,153,772 restricted shareswere repurchased and cancelled, including 289,467 shares repurchased and cancelled becausethe incentive recipients no longer met the conditions of the Company"s 2023 Restricted StockIncentive Plan due to resignation or position changes, and 1,864,305 shares repurchased andcancelled because they could not be lifted from the second lock-up period due to personalperformance assessment results. This transaction led to a decrease in share capital of RMByear 2025.As of June 30, 2026, the cumulative amount of equity-settled share-based paymentsrecognized in capital reserve amounted to RMB 26,719,287 yuan. Unit: yuan Method for determining the fair value of equity instruments on Restricted stock: stock price on grant date minus grant price grant date Basis for determining the number of exercisable equity Management"s best estimate instruments Reasons for significant differences between the current estimate and the prior estimate Accumulated amount of equity-settled share-based payments included in capital reserve Total amount of expenses recognized as equity-settled share-based payments in this period Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Ending Balance Beginning BalanceMaking long-term asset commitments 14,939,200 29,302,000As of the balance sheet date, the Group didn"t have any contingency to be disclosed.The Group held its fourth 2026 Remuneration Committee meeting, and its fifth 2026extraordinary board meeting on July 26, 2026. The meetings approved the Proposal on theNon-fulfillment of Conditions for the Third Release Tranche under the Company"s 2023Restricted Stock Incentive Plan and Proposal on the Repurchase and Cancellation of Part ofthe Restricted Shares under the Company"s 2023 Restricted Stock Incentive Plan andAdjustment of the Repurchase Price. At the second extraordinary general shareholders"meeting held on August 12, 2026, the Proposal on the Repurchase and Cancellation of Partof the Restricted Shares under the Company"s 2023 Restricted Stock Incentive Plan andAdjustment of the Repurchase Price was approved. As the conditions for the third lock-upperiod under the Company"s 2023 Restricted Stock Incentive Plan were not satisfied, therelevant granted restricted shares are required to be repurchased and cancelled. A total ofmeet the performance assessment requirements, at a repurchase price of RMB 14.62 yuan pershare. The total repurchase consideration payable by the Company for this repurchase ofrestricted shares is RMB 36,346,800 yuan. Upon completion of this repurchase andcancellation, the total number of issued shares of the Company will be reduced fromcancellation, there will be no change to the Company"s controlling shareholders or actualcontroller.Nil Unit: yuanAge Ending Balance Beginning Balance Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual ReportWithin 1 year (including 1 year) 517,000Over 3 yearsTotal 517,000 Unit: yuan Ending Balance Beginning Balance Provision for bad Provision for bad Type Book balance Book balance debts Book debts Book Accrued value Accrued value Amount Proportion Amount Amount Proportion Amount proportion proportionAccountsreceivable forwhich provision forbad debts isaccrued on a singleitem basisAccountsreceivable forwhich provision forbad debts isaccrued on acombined basisTotal 517,000 100% 1,344 0.26% 515,656Provision for bad debts accrued in this period: Unit: yuan Changes in this period Beginning Type Withdrawn or Ending Balance balance Accrual Cancelled transferred backAccounts receivablefor which provision forbad debts is accrued ona single item basisProvision for bad debtsis accrued on a 1,344 1,344combined basisTotal 1,344 1,344Nil Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Reportranked by ending balance Unit: yuan Ending balance of Percentage in total Ending balance of bad debts Ending balance of ending balance of Ending balance of accounts provision and Unit Name accounts accounts contract assets receivable and provision for receivable receivable and contract assets impairment of contract assets contract assets Zhongya Zhibao 506,000 506,000 97.9% 1,316 Tianji 11,000 11,000 2.1% 28 Total 517,000 517,000 100% 1,344NilNil Unit: yuan Item Ending Balance Beginning BalanceInterests receivableDividends receivable 3,495,195 20,000,000Other receivables 531,106,606 686,617,690Total 534,601,801 706,617,690 Unit: yuan Item (or the invested unit) Ending Balance Beginning BalanceDividends receivable from subsidiaries 3,495,195 20,000,000Total 3,495,195 20,000,000 Unit: yuan Nature Ending Balance Beginning BalanceAccounts receivable from subsidiaries 463,264,152 606,611,486Others 75,109,063 88,172,813 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Nature Ending Balance Beginning BalanceTotal 538,373,215 694,784,299 Unit: yuan Age Ending Balance Beginning BalanceWithin 1 year (including 1 year) 276,174,603 417,489,585Over 3 years 101,736 101,736Total 538,373,215 694,784,299 Changes in this period Beginning Withdrawn or Type Transfer back Ending Balance Balance Accrual transferred Others or write-off back Individual accrual Total 8,166,609 -900,000 7,266,609The provision for bad debts accrued in this period was RMB -900,000 yuan; and thatwithdrawn or transferred back in this period was RMB 0 yuan.Nilending balance Unit: yuan Percentage in total Ending balance of ending balance of Unit Name Nature Ending Balance Age provision for bad other accounts debts receivable Accounts receivableSales company 267,018,392 Within 1 year 49.6% from subsidiaries Accounts receivable Within 1 year and 1-2Atrio Group 136,294,427 25.3% from subsidiaries yearsLaizhou Zhuqiao Town CompensationPeople"s Government, receivable from theLaizhou Yidao Town disposal ofPeople"s Government vineyards Accounts receivable Within 1 year and 1-2Kilikanoon Estate 52,972,215 9.8% from subsidiaries years Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Percentage in total Ending balance of ending balance of Unit Name Nature Ending Balance Age provision for bad other accounts debts receivableYantai Municipal Finance HousingBureau maintenance fundTotal 531,654,727 98.7% 7,266,609NilNilNil Unit: yuan Ending Balance Beginning Balance Item Book balance Depreciation Book value Book balance Depreciation Book value reserves reservesInvestment in subsidiaries 7,737,521,508 97,669,546 7,639,851,962 7,737,521,508 97,669,546 7,639,851,962Investment in associatedenterprises and jointTotal 7,737,521,508 97,669,546 7,639,851,962 7,737,521,508 97,669,546 7,639,851,962 Unit: yuan Movements during the period Ending Beginning Beginning Ending balance of balance of Accrual Investee balance (book Increase Decrease balance (book provision provision for provision for Others value) in capital in capital value) for impairment impairment impairmentKylin Packaging 23,553,931 23,553,931Changyu Chateau 29,281,772 29,281,772Pioneer International 4,464,714 4,464,714Ningxia Growing 36,573,247 36,573,247National Wine 2,000,000 2,000,000Icewine Valley 85,638,472 85,638,472AFIP 588,648,215 588,648,215 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Movements during the period Ending Beginning Beginning Ending balance of balance of Accrual Investee balance (book Increase Decrease balance (book provision provision for provision for Others value) in capital in capital value) for impairment impairment impairmentSales Company 18,952,112 18,952,112Wine Sales 5,109,166 5,109,166Shanghai Marketing 1,000,000 1,000,000Beijing Sales 850,000 850,000Jingyang Wine 900,000 900,000Ningxia Wine 222,309,388 222,309,388Ningxia Chateau 453,760,284 453,760,284Chateau Tinlot 212,039,586 212,039,586Shihezi Chateau 812,311,899 812,311,899 Longue ChansonChateauR&D Company 3,290,268,550 3,290,268,550Wine SalesCompanyFrancs Champs 236,025,404 236,025,404Atrio Group 221,916,810 11,225,459 221,916,810 11,225,459Indomita Chile 274,248,114 274,248,114Kilikanoon Estate,AustraliaDigital marketing 50,191,439 50,191,439Chateau Koya 110,337,503 110,337,503Shanghai Weimeisi 7,910,985 7,910,985Changyu CulturalTourism CompanyDevelopment ZoneTradingPenglai WineIndustryLongkou Sales 1,611,286 1,611,286Laizhou Sales 87,342 87,342Yantai RoulletFransacMuseum 265,162 265,162Window of WineCityAFIP Tourism 162,952 162,952Meeting Center 102,210 102,210Ningxia Trading 162,952 162,952Christon Catering 102,210 102,210Total 7,639,851,962 97,669,546 7,639,851,962 97,669,546 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Amount incurred in this period Amount incurred in prior period Item Income Cost Income CostMain business 155,254,347 137,104,339 160,834,485 143,910,902Others businesses 1,220,972 1,126,695 1,760,482 1,355,077Total 156,475,319 138,231,034 162,594,967 145,265,979Including: Income fromcontracts Income from houserents Unit: yuanContract classification Operating income Operating costType of merchandise- Alcoholic beverage 155,254,347 137,104,339- OthersClassified by the time of merchandise transfer- Revenue recognized at a point in time 155,254,347 137,104,339 Unit: yuan Item Amount incurred in this period Amount incurred in prior periodIncome from long-term equity investment by cost method 173,495,195 46,246,053Income from long-term equity investment by equitymethodInvestment income from disposal of long-term equityinvestmentInvestment income of the financial assets measured attheir fair values and the variation of which is recordedinto the current profits and losses during the holdingperiodInvestment income gained from disposal of the financialassets measured at their fair values and the variation ofwhich is recorded into the current profits and lossesInvestment income of held-to-maturity investment duringthe holding periodInvestment income of financial assets held for sale duringthe holding periodInvestment income gained from disposal of financialassets held for saleGains generated from the remaining equity remeasured asper fair value after the loss of controlTotal 173,495,195 46,246,053 Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report Unit: yuan Item Amount RemarkProfits/losses on disposal of non-current assets 38,966Governmental subsidy included in the current profits/losses (excluding those closely related tothe enterprise business and enjoyed in accordance with the unified standard quota or ration of 8,354,311the state)Profits/losses on changes of fair value of financial assets and financial liabilities ofnon-financial business, and profits/losses from disposal of financial assets and financialliabilities, excluding effective hedging operations relevant to the normal business of theCompanyPayment for use of funds by non-financial enterprises included in the current profits/lossesProfits/losses on entrusting other people to make investment or manage assetsProfits/losses on external entrusted loansAsset impairment provision accrued due to force majeure such as natural disasterTransfer-back of accounts receivable provision for impairment with single impairment testIncome obtained when the investment cost obtained by the enterprise from subsidiaries,joint-run business and joint venture is less than the fair value of the net identifiable assetsobtained from the invested units when the investment is madeCurrent net profits/losses on subsidiaries acquired from a business combination under commoncontrol from the beginning to the consolidation dateProfits/losses on exchange of non-monetary assetsProfits/losses on debt restructuringOne-time expenses incurred by enterprises due to the discontinuation of related businessactivities, such as expenses for resettling employees, etcInfluence of the one-time adjustment of the current profits/losses in accordance with tax andaccounting laws and regulations on the current profits/lossesOne-time confirmation of share-based payment expenses due to cancellation or modification ofequity incentive planFor cash-settled share-based payment, profits/losses arising from changes in fair value ofemployee compensation payable after the exercise dateProfits/losses on fair value changes of investment real estate with fair value mode for follow-upmeasurementProfits generated from transactions with unfair transaction priceProfits/losses on contingencies irrelated to the normal business of the CompanyTrustee fee income from entrusted operationOther non-operating income and expenditure besides the above items 2,420,717Other profits/losses conforming to the definition of non-recurrent profits/lossesMinus: Influenced amount of income tax 2,592,122 Influenced amount of minority equity 664,846Total 7,557,026 -- Profit in reporting period Weighted average Earnings per share Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report return on net assets Diluted EPS Basic EPS (yuan/Share) (yuan/Share)）Net profit attributable to common shareholders of theCompanyNet profit attributable to common shareholders of theCompany deducting non-recurrent profits/lossesthe international accounting standard and Chinese accounting standard Unit: yuan Net profits Net assets Amount incurred in Amount incurred in Ending Balance Beginning Balance this period prior periodIn accordance with theChinese accounting 140,515,805 185,597,142 10,276,824,571 10,347,247,577standardItem & amount adjusted in accordance with the international accounting standard:In accordance with theinternational accounting 140,515,805 185,597,142 10,276,824,571 10,347,247,577standard Yantai Changyu Pioneer Wine Co., Ltd. Board of Directors August 21, 2026
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