Share Abbreviation: Changyu A, Changyu B Shares No: 000869, 200869
Announcement No. Lin 2005-010

    　　　　　　　　Announcement of the Resolution Made over the
    　　　　　　　　Board of Supervisors 3rd Meeting 3rd Session,
    　　　　　　　　　　Yantai Changyu Pioneer Wine Co., Ltd.

    It is hereby announced that The Board of Supervisors of Yantai Changyu Pioneer
Wine Co., Ltd. 3rd　Meeting 3rd Session was held at the company's Wine and Viniculture
Museum on March 12, 2005. The meeting notice and relevant proposals were delivered by
couriers on March 2, 2005. The quorum for supervisors is 3 and all the supervisors
were present at the session. The session, chaired by the chairwoman Ms. Zhang Hongxia,
was convened and held in accordance with relevant laws, regulations and the "Articles
of Association". All proposals were discussed about over the session and consequently
the supervisors passed the "Report of the Board of Supervisors" included in the annual
report by open-voting procedures. The resolutions made thereto are as follows:
    1.The session deliberated the "Proposal on Annual Report 2004 and Its Summery",
"Financial Report on Final Accounts 2004 and Budget for 2005", "Preliminary Scheme on
Profits Distribution 2004" and "Preliminary Proposal on Renewing Contract with the
Present Certified Public Accountants Firm".
    2.The "Report of the Board of Supervisors" was passed as a result of 3 affirmative
votes, 0 negative vote and 0 abstention.
    During the report period, the board of supervisors, in accordance with the
"Company Law" and "Articles of Association", devotedly carried our their duties,
attended the board of directors meetings as a non-voter, and took part in the
discussions on important and significant issues. The board of supervisors, after
internal discussions, hereby expresses its independent comments as follows:
    (1)During the report period, the directors and senior managerial staff of the
company were honest and dedicated to their work, abided by laws and rules, could
devotedly and conscientiously execute the resolutions of the shareholders meetings
and the decisions of the board of directors, followed regulation of "company law" and
"articles of association",the national laws, rules and the internal regulations
during performing their duties, safeguarded the interests of both the company and all
shareholders, and were found no conducts and behaviors against laws, rules, the
company-made regulations or of infringements upon the interests of the company.
    (2)During the report period, various expenses were generally reasonable and
acceptable, the special funds withdrawn for future use were in accordance with the
relevant laws, rules and the in-house regulations, the financial structure was good
and the quality of assets was excellent. Pricewaterhouse coopers zhong tian certified
accounts company limited audited the financial statements of 2004 fiscal year
according to Internationally accepted Accounting Criteria and Chinese Accounting
Regulations respectively and published unreserved auditing report. The board of
supervisors thinks that the report has reflected the company's financial status,
operating results and cash flow authentically, impersonally and exactly.
    (3)During the report period, the company had no conduct of raising capital except
the one occurred in October 2000 when the company issued 32,000,000 shares of
RMB-denominated common stock. The capital raised thereof was actually invested in the
promised projects that were in conformity with those as written in the "Directions of
Stock Issuance", and the said capital was not used for any other projects. The
projects that have been put into operation have generated satisfactory investment cost
recovery.
    (4) No conducts of underground deals and infringements upon shareholders'
interests or of making the losses of corporate assets were found.
    (5) The interrelated deal occurred over the report period was carried out
with complete formalities and based on impartiality and in the interest of the
shareholders. The principal of investments in other sectors other than the company's
own was safe and the investments have made better returns.
    The board of supervisors also thinks that the board of directors and managerial
circle were closely united together and in smooth coordination to do the initiative
and efficient work, made greater successes and effectively performed their duties in
executing the resolutions of the shareholders meeting. And meanwhile, the board of
supervisors hereby suggests that in the new year, the company should stick to the
concept of focusing on markets, make more efforts to the approaches to markets,
increasingly reinforce the core competitiveness, and try its best to push the company
on in a sustainable, steady and healthy way.

    　　　　　　　　　　　　　　　　　　　　　　　　 The board of supervisors
    　　　　　　　　　　　　　　　　　　 of Yantai Changyu Pioneer Wine Co., Ltd.
    　　　　　　　　　　　　　　　　　　　　　　　　　　　 March 15, 2005