Dividend Distribution - The company plans to distribute a cash dividend of 5.00 RMB per 10 shares to all shareholders based on the total share capital as of December 31, 2013[6]. - For 2013, the company plans to distribute a cash dividend of CNY 342,732,000, which represents 32.70% of the net profit attributable to shareholders of CNY 1,048,185,927[81]. - The cash dividend policy stipulates that the annual profit distribution should not be less than 25% of the distributable profit for the year, with a cumulative cash distribution over the last three years not less than 30% of the average annual distributable profit[87]. - The total number of shares for the cash dividend distribution in 2013 is 685,464,000, with a proposed distribution of CNY 5 per 10 shares[85]. - The company retained CNY 705,453,927 of the net profit for the next year after the 2013 dividend distribution[89]. - The cash dividend for 2011 was CNY 801,465,600, which accounted for 42.02% of the net profit attributable to shareholders of CNY 1,907,208,732[83]. Financial Performance - The company's operating revenue for 2013 was CNY 4,320,948,572, a decrease of 23.44% compared to 2012[33]. - The net profit attributable to shareholders for 2013 was CNY 1,048,185,927, down 38.38% from the previous year[33]. - The basic earnings per share for 2013 was CNY 1.53, a decrease of 38.31% compared to CNY 2.48 in 2012[33]. - The total profit for 2013 was RMB 1,397,106,731, a decrease of 38.4% compared to RMB 2,270,175,758 in 2012[197]. - The comprehensive income attributable to shareholders of the parent company for 2013 was RMB 1,048,185,927, compared to RMB 1,700,928,117 in 2012[197]. Operational Overview - The company operates in the production, processing, and sales of wine, distilled spirits, and non-alcoholic beverages, with a focus on expanding its market presence[19]. - The company has outlined its operational scope, which includes wine production and related activities, indicating a stable business model[19]. - The company has maintained its registered address and contact information consistent with previous years, ensuring transparency in communication[16]. - The company has established a nationwide marketing network, enhancing its market expansion capabilities[62]. - The company has a strong research and development system, with a national-level wine research center, which supports product innovation[62]. Research and Development - The company increased its R&D investment by 11.60% in 2013, reflecting a growth in technology development expenditures[34]. - R&D expenditure for 2013 was CNY 12,310,000, accounting for 0.3% of operating revenue, an increase of 11.60% year-on-year[52]. - The company completed three provincial-level technology research projects, with the ice wine project achieving international leading standards[40]. - The company is investing in new technology development, allocating 50 million RMB for R&D in the upcoming year[135]. Market Challenges - The company acknowledges potential risks in its future operations and advises investors to consider market conditions and management efforts[13]. - The company faced significant pressure from increased competition and a decline in effective demand for high-end products due to external factors[33]. - The company is facing risks related to raw material price fluctuations, market input-output uncertainties, and product transportation challenges[74]. Asset Management - The total assets at the end of 2013 were CNY 8,001,532,444, a decrease of 1.5% from the previous year[33]. - The company's cash and cash equivalents decreased significantly to CNY 1,367,818,182, down 10.33% from CNY 2,227,470,828 in the previous year[58]. - Accounts receivable increased to CNY 177,109,516, representing 2.21% of total assets, up from 1.66% the previous year[58]. - Inventory decreased to CNY 2,121,117,437, accounting for 26.51% of total assets, down from 27.93%[58]. Corporate Governance - The company emphasizes the importance of accurate financial reporting and has confirmed the integrity of the annual report by its board and management[5]. - The company maintains independent operations from its controlling shareholder, ensuring no interference in decision-making or operations[148]. - The independent directors fulfilled their responsibilities and ensured the protection of minority shareholders' rights during the dividend decision-making process[79]. - The company has a complete and independent financial accounting system, ensuring compliance with tax obligations and independent financial decision-making[166]. Shareholder Information - The total number of shareholders at the end of the reporting period was 50,322, with 37,511 holding A-shares and 12,811 holding B-shares[116]. - Yantai Zhangyu Group Co., Ltd. holds 50.4% of the shares, amounting to 345,473,856 shares, with no changes during the reporting period[116]. - The company has no plans for significant share changes or new share issuances during the reporting period[113]. - The company has not engaged in any repurchase agreements during the reporting period[118]. Future Outlook - The company aims to achieve a revenue of no less than CNY 4.6 billion in 2014, with main business costs and three types of period expenses controlled below CNY 3.2 billion[71]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[135]. - Market expansion plans include entering two new international markets, aiming for a 5% market share within the first year[135]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB earmarked for potential deals[135].

Revenue and Profit - Revenue for Q1 2014 was CNY 1,508,515,994, a decrease of 18.4% compared to CNY 1,848,564,099 in the same period last year[10] - Net profit attributable to shareholders was CNY 457,522,651, down 19.82% from CNY 570,638,033 year-on-year[10] - Basic earnings per share decreased by 19.28% to CNY 0.67 from CNY 0.83 in the same period last year[10] - Operating revenue decreased by 18.40% to ¥1,508,515,994, mainly attributed to a decline in sales volume[19] - Net profit attributable to the parent company decreased by 19.82% to ¥457,522,651, primarily due to a drop in sales revenue[19] Cash Flow and Assets - Net cash flow from operating activities increased by 34.94% to CNY 706,507,223, compared to CNY 523,571,540 in the previous year[10] - Cash and cash equivalents increased by 183.00% to ¥623,140,298, primarily due to cash received from product sales[19] - Accounts receivable increased by 256.42% to ¥284,073,362, mainly due to an increase in bank acceptance bills received from product sales[19] - Cash outflow from operating activities decreased by 35.68% to ¥430,200,065, primarily due to a reduction in cash paid for purchases and expenses[19] - Cash paid for purchasing goods and services decreased by 34.29% to ¥213,166,230, mainly due to a decline in cash paid for raw materials[19] - Investment activity cash outflow decreased by 51.29% to ¥228,303,819, primarily due to a decrease in time deposits and an increase in cash expenditures for investment projects[19] - Cash paid for fixed assets and intangible assets increased by 36.69% to ¥207,206,059, mainly due to increased cash investment in projects[19] Shareholder Information - Total assets at the end of the reporting period were CNY 8,527,529,718, reflecting a 6.57% increase from CNY 8,001,532,444 at the end of the previous year[10] - Net assets attributable to shareholders increased by 7.37% to CNY 6,665,802,356 from CNY 6,208,279,705 at the end of the previous year[10] - The total number of shareholders at the end of the reporting period was 51,856, with 36,695 A-share shareholders and 15,161 B-share shareholders[14] - The largest shareholder, Yantai Changyu Group Co., Ltd., holds 50.4% of the shares, totaling 345,473,856 shares[14] Expenses and Financial Activities - Sales expenses decreased by 30.83% to ¥298,441,169, primarily due to a reduction in advertising and freight costs[19] - Financial expenses decreased by 11.39% to -¥11,647,090, mainly due to an increase in interest income from deposits[19] - The company reported non-recurring gains and losses totaling CNY 2,867,300 for the reporting period[12] - There were no significant changes in the company's financing or share repurchase activities during the reporting period[16]

Financial Performance - The company's operating revenue for 2013 was CNY 4,320,948,572, a decrease of 23.44% compared to CNY 5,643,530,553 in 2012[21]. - The net profit attributable to shareholders for 2013 was CNY 1,048,185,927, down 38.38% from CNY 1,700,928,117 in 2012[21]. - The net cash flow from operating activities decreased by 43.54% to CNY 735,074,307 from CNY 1,302,041,322 in 2012[21]. - Basic earnings per share for 2013 were CNY 1.53, a decline of 38.31% from CNY 2.48 in 2012[21]. - The total assets at the end of 2013 were CNY 8,001,532,444, a decrease of 1.5% from CNY 8,123,134,580 at the end of 2012[21]. - The total cost of goods sold for 2013 was CNY 1,257,643,985, representing a decrease of 1.15% year-on-year[49]. - The total revenue from sales of goods and services in 2013 was RMB 4,766,532,032, down from RMB 6,775,549,780 in 2012, representing a decrease of approximately 29.5%[172]. - The company reported a total revenue of 3.44 billion RMB for the year 2013, reflecting a growth of 8.6% compared to the previous year[96]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 5.00 per 10 shares to all shareholders[5]. - The company distributed cash dividends of 754,010,400 RMB, accounting for 44.33% of the net profit attributable to shareholders[68]. - In 2013, the company distributed cash dividends totaling RMB 342,732,000, which represents 32.70% of the net profit attributable to shareholders of RMB 1,048,185,927[73]. - The remaining undistributed net profit for 2013 was RMB 705,453,927, which will be carried forward to the next year[78]. - The company has a policy to distribute at least 25% of the annual distributable profit, with a cumulative cash distribution over the last three years not less than 30% of the average annual distributable profit[76]. Operational Strategies and Market Position - The company implemented a strategy to focus on mid-to-high-end wines while also developing low-end wines and brandy to adapt to market demand[30]. - The company plans to strengthen marketing management and enhance marketing capabilities, ensuring the implementation of policies and measures at sales terminals[63]. - The company aims to achieve a revenue of no less than 4.6 billion RMB in 2014, with main business costs and three period expenses controlled below 3.2 billion RMB[63]. - The company is committed to improving grape base management and product quality, with a focus on mechanization and standardization[63]. - The company plans to develop new wine products based on market demand, including fruit-flavored and single-varietal wines[63]. Research and Development - Research and development investment increased by 11.60% due to growth in technical development expenditures[30]. - Research and development expenses amounted to CNY 12,310,000, accounting for 0.3% of operating revenue, with an increase of 11.60% year-on-year[46]. - The company is investing 100 million RMB in new technology development to enhance production efficiency and quality[105]. - The company has invested a total of 294,999,000 yuan in various projects, with 81,433,000 yuan spent in the reporting period[60]. Risks and Challenges - The company faces significant risks in its production and operation processes, which may impact future performance[12]. - The company anticipates challenges in the high-end wine market due to ongoing competition from imported wines and the impact of e-commerce on traditional sales channels[61]. - The company faces risks related to raw material price fluctuations, market input-output uncertainty, and product transportation challenges[64][65]. Governance and Management - The company has a structured governance framework with a clear separation of roles among the board, supervisors, and management[110]. - The company has established a high-level management incentive plan to determine the remuneration of its executives based on performance evaluations[113]. - The board consists of four independent directors, accounting for approximately one-third of the total board members, ensuring compliance with governance standards[119]. - The company has maintained a consistent leadership structure, with key executives serving multiple terms, ensuring stability in management[110]. Customer Engagement and Market Expansion - User data indicated a rise in active customers, with a 15% increase in the number of wine club members compared to the previous year[82]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share in the region within the next three years[82]. - The company aims to enhance its online sales platform, with a target of doubling e-commerce revenue by the end of the next fiscal year[82]. - The company is exploring potential acquisitions of smaller wineries to diversify its product offerings and enhance market presence[97]. Financial Health and Assets - The company's total liabilities amounted to RMB 1,630,511,960, down from RMB 2,063,649,393 at the beginning of the year, indicating a reduction in financial obligations[158]. - The company's cash and cash equivalents decreased to RMB 1,367,818,182 from RMB 2,227,470,828, reflecting a decline of approximately 38.6%[156]. - The total assets of the company increased to 8.6 billion RMB, a rise of 12% from the previous year[96]. - The company reported a total procurement amount of 2,500 million yuan for the year 2013, with a significant portion attributed to related party transactions[86]. Audit and Compliance - The company appointed Deloitte Huayong as the new auditor for the 2013 financial report, replacing Ernst & Young Huaming after six years of service[90]. - The audit committee unanimously agreed that the audit report from Ernst & Young Huaming Certified Public Accountants for the 2012 financial statements was unqualified and accurately reflected the company's financial status[129]. - The company maintained effective internal controls over financial reporting, as confirmed by the audit report[146]. - The company has an independent financial department and operates a complete and independent financial accounting system[136].