Wuliangye Yibin Co., Ltd.
Annual Report 2023
Chairman of the Board: Zeng Congqin
29 April 2024
Part I Important Notes, Table of Contents and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as thedirectors, supervisors and senior management of Wuliangye Yibin Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee that the contents of this Report are true, accurate andcomplete and free of any misrepresentations, misleading statements or material omissions, andcollectively and individually accept legal responsibility for such contents.
2. Zeng Congqin, the Company’s legal representative, Xie Zhiping, the Company’s ChiefFinancial Officer, and Liu Hongxu, head of the Company’s accounting department, herebyguarantee that the financial statements carried in this Report are true, accurate and complete.
3. Nine directors were supposed to attend the board meeting for the review of this Report.Eight of them were present at the meeting in person while Mr. Xiao Hao voted by way oftelecommunication for he was unable to be present due to work reasons.
4. Any future plans, development strategies and other forward-looking statements mentionedin this Report shall not be considered as promises to investors for the reason of their uncertainty.Investors are kindly advised to invest wisely. The Company has disclosed in this Report thepossible risks. And investors are reminded to exercise caution when making investment decisions.
5. The Board of Directors has approved a final cash dividend of RMB46.70 (tax inclusive)per 10 shares to shareholders based on the total 3,881,608,005 shares held by them, with no bonusissue from either profit or capital reserves.
6. This Report has been prepared in Chinese and translated into English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Management Discussion and Analysis ...... 12
Part IV Corporate Governance ...... 33
Part V Environmental and Social Responsibility ...... 49
Part VI Significant Events ...... 54
Part VII Share Changes and Shareholder Information ...... 58
Part VIII Preference Shares ...... 64
Part IX Bonds ...... 64
Part X Financial Statements ...... 65
Documents Available for Reference
The following documents are available for shareholders at the relevant department of theCompany:
1. The financial statements that have been signed and stamped by the legal representative,the Chief Financial Officer, and the head of the accounting department.
2. The original copy of the Independent Auditor’s Report that has been stamped by the CPAfirm, as well as signed and stamped by the relevant certified public accountants.
3. The originals of all the Company’s documents and announcements that were disclosed onChina Securities Journal, Shanghai Securities News and Securities Times during the ReportingPeriod.
4. The Annual Report of the Company.
Definitions
| Term | refers to | Definitions |
| The “Company”, “Wuliangye”, “WLY”, or “we” | refers to | Wuliangye Yibin Co., Ltd. |
| SASAC Yibin | refers to | The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin City |
| Yibin Development Group | refers to | Yibin Development Holding Group Co., Ltd. |
| Wuliangye Group | refers to | Sichuan Yibin Wuliangye Group Co., Ltd. |
| Wuliang NongXiang | refers to | Sichuan Wuliangye NongXiang Baijiu Co., Ltd. |
| Push Group | refers to | Sichuan Yibin Push Group Co., Ltd. |
| Global Group | refers to | Sichuan Yibin Global Group Co., Ltd. |
| Anji Logistic Group | refers to | Anji Logistic Group Co., Ltd. Sichuan |
| Wuliangye Group Finance | refers to | Sichuan Yibin Wuliangye Group Finance Co., Ltd. |
| Creart | refers to | Yibin Wuliangye Creart Co., Ltd. |
| Wuliangye Cultural Tourism | refers to | Sichuan Wuliangye Cultural Tourism Development Co., Ltd. |
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | Wuliangye | Stock code | 000858 |
| Stock exchange | Shenzhen Stock Exchange | ||
| Company name in Chinese | 宜宾五粮液股份有限公司 | ||
| Abbr. | 五粮液 | ||
| Company name in English (if any) | WULIANGYE YIBIN CO.,LTD. | ||
| Abbr. (if any) | WLY | ||
| Legal representative | Zeng Congqin | ||
| Registered address | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China | ||
| Zip code | 644007 | ||
| Past changes of registered address | N/A | ||
| Office address | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China | ||
| Zip code | 644007 | ||
| Company website | http://www.wuliangye.com.cn | ||
| Email address | 000858-wly@sohu.com | ||
II Contact Information
| Board Secretary | Securities Representative | |
| Name | Zhang Xin | Huang Hui |
| Office address | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China |
| Tel. | （0831）3567000 | （0831）3567000 |
| Fax | （0831）3555958 | （0831）3555958 |
| Email address | 000858-wly@sohu.com | 000858-wly@sohu.com |
III Media for Information Disclosure and Place where this Report Is Lodged
| Stock exchange website where this Report is disclosed | The website of the Shenzhen Stock Exchange (www.szse.cn) |
| Media and website where this Report is disclosed | China Securities Journal, Shanghai Securities News, Securities Times, and http://www.cninfo.com.cn |
| Place where this Report is lodged | The Company’s Board Office |
IV Change to Company Registered Information
| Unified social credit code | 91511500MA62A0WM8P |
| Changes to the principal activities of the Company since its listing (if any) | No change during the Reporting Period |
| Every change of controlling shareholder since incorporation (if any) | No change during the Reporting Period |
V Other Information
The independent auditor appointed by the Company:
| Name of the independent auditor | Sichuan Huaxin (Group) CPA (LLP) |
| Office address | 28/F, South Jinmaolidu, 18 Ximianqiao Street, Chengdu City, Sichuan Province, China |
| Accountants writing signatures | Li Wulin, Ye Juan, and Luo Guiqiu |
The independent sponsor appointed by the Company to exercise constant supervision over the Company inthe Reporting Period:
□ Applicable ? Not applicable
The independent financial advisor appointed by the Company to exercise constant supervision over theCompany in the Reporting Period:
□ Applicable ? Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.? Yes □ NoReason for retrospective restatement:
Change in accounting policy
| 2023 | 2022 | 2023-on-2022 change (%) | 2021 | |||
| Before | Restated | Restated | Before | Restated | ||
| Operating revenue (RMB) | 83,272,067,317.19 | 73,968,640,704.54 | 73,968,640,704.54 | 12.58% | 66,209,053,612.11 | 66,209,053,612.11 |
| Net profit attributable to the listed company’s shareholders (RMB) | 30,210,585,269.30 | 26,690,661,397.42 | 26,689,983,647.20 | 13.19% | 23,377,074,353.40 | 23,380,590,527.63 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 30,116,468,910.79 | 26,662,736,708.98 | 26,662,058,958.76 | 12.96% | 23,327,729,257.82 | 23,331,245,432.05 |
| Net cash generated from/used in operating activities (RMB) | 41,742,479,908.23 | 24,431,136,261.48 | 24,431,136,261.48 | 70.86% (note) | 26,774,941,873.05 | 26,774,941,873.05 |
| Basic earnings per share (RMB/share) | 7.783 | 6.876 | 6.876 | 13.19% | 6.023 | 6.023 |
| Diluted earnings per share (RMB/share) | 7.783 | 6.876 | 6.876 | 13.19% | 6.023 | 6.023 |
| Weighted average return on equity (%) | 25.06% | 25.28% | 25.28% | Down by 0.22 percentage point | 25.30% | 25.31% |
| 31 December 2023 | 31 December 2022 | Change of 31 December 2023 on 31 December 2022 (%) | 31 December 2021 | |||
| Before | Restated | Restated | Before | Restated | ||
| Total assets (RMB) | 165,432,981,684.75 | 152,714,727,880.22 | 152,811,927,251.18 | 8.26% | 135,620,812,221.13 | 135,754,813,767.36 |
| Equity attributable to the listed company’s shareholders (RMB) | 129,558,241,040.51 | 114,025,058,788.17 | 114,027,897,212.18 | 13.62% | 99,068,498,346.24 | 99,072,014,520.47 |
Note: This is primarily driven by the increased cash generated from operating activities. Firstly, due to consumption recovery in the year, the Company saw ahigher percentage of cash settlement with its customers and a higher amount of cash collected on due bank acceptance bills, resulting in a significant increase in cash
proceeds from sale of goods and rendering of services. Secondly, to cope with market changes in the same period of last year, the Company lowered the percentage ofcash settlement with its customers, leading to a lower base of cash proceeds from sale of goods and rendering of services.
Reason for change in accounting policy and correction of accounting errors:
On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the Accounting Standards for Business Enterprises (C.K. [2022] No. 31,hereinafter referred to as “Interpretation No. 16”, of which the “accounting treatment that deferred income tax related to assets and liabilities arising from a singletransaction is not exempt in initial recognition” was effective from 1 January 2023.For a single transaction to which Interpretation No. 16 applies that occurred between the beginning of the earliest period presented in the financial statements towhich Interpretation No. 16 was first applied (i.e., 1 January 2022) and 1 January 2023, adjustments shall be made in accordance with Interpretation No. 16. Fortaxable temporary differences and deductible temporary differences arising from lease liabilities and right-of-use assets recognised on 1 January 2022 as a result of asingle transaction to which Interpretation No. 16 applies, the cumulative effects shall be adjusted to retained earnings and other relevant financial statement items on1 January 2022 in accordance with Interpretation No. 16 and Accounting Standard No. 18 for Business Enterprises—Income Tax.
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and afterexceptional gains and losses was negative for the last three accounting years, or the latest independent auditor’sreport indicated that there was uncertainty about the continuity of the Company’s operations.
□ Yes ? No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and afterexceptional gains and losses was negative.
□ Yes ? No
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable ? Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 31,138,862,489.34 | 14,367,522,329.03 | 17,030,002,820.69 | 20,735,679,678.13 |
| Net profit attributable to the listed company’s shareholders | 12,542,086,212.64 | 4,494,622,578.54 | 5,796,220,371.11 | 7,377,656,107.01 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 12,455,824,184.77 | 4,485,445,516.33 | 5,800,445,897.62 | 7,374,753,312.07 |
| Net cash generated from/used in operating activities | 9,535,617,536.41 | 1,794,201,349.89 | 11,058,926,288.67 | 19,353,734,733.26 |
Indicate whether any of the quarterly financial data in the table above or their summations differs materiallyfrom what have been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses
? Applicable □ Not applicable
Unit: RMB
| Item | 2023 | 2022 | 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -50,550,226.30 | 2,282,237.38 | -23,622,995.51 | |
| Government grants recognised in profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 236,257,100.25 | 100,421,839.81 | 184,126,377.62 | |
| Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 300,065.66 | 442,730.22 | 2,144,596.61 |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 1,388,731.60 | |||
| Non-operating income and expense other than the above | -36,541,935.37 | -62,917,173.08 | -80,306,712.64 | |
| Less: Income tax effects | 40,618,434.04 | 8,377,774.30 | 21,010,672.65 | |
| Non-controlling interests effects (net of tax) | 16,118,943.29 | 3,927,171.59 | 11,985,497.85 | |
| Total | 94,116,358.51 | 27,924,688.44 | 49,345,095.58 | -- |
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Part III Management Discussion and Analysis
I Industry Overview for the Reporting PeriodDuring the Reporting Period, China's Baijiu industry continued to grow amid intense competition. Theexisting Baijiu producers were competing even more fiercely with each other, with increased market shareconcentration, intensified brand competition, fierce price competition, and bigger business sizes based on regionsof production. The structural differentiation trend within the industry became more apparent, continuouslyconcentrating towards strong brands, top producers, and major regions of production. In 2023, China's Baijiuproducers above the designated size achieved sales revenue of RMB756.3 billion, up 9.7% year on year; and aprofit before tax of RMB232.8 billion, up 7.5% year on year, fully demonstrating the resilience of the Baijiuindustry.II Principal Operations of the Company during the Reporting Period(I) OverviewThe Company is principally engaged in Baijiu production and sales. According to the Guidelines for theIndustry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Baijiuindustry falls into the category of the "liquor & wine, beverage, and refined tea production industry" (C15). Nochange occurred to the principal operations of the Company during the Reporting Period. "Wuliangye", theprimary product of the Company, is a classic strong-flavor Chinese Baijiu. Additionally, the Company hasdeveloped, based on different production techniques and market needs, Wuliang NongXiang Baijiu products suchas Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, and Mianrou Jianzhuang withcomplete categories and unique tastes to meet the diverse needs of different consumers in pursuit of a better life.(II) Brand Operation
1. Wuliangye-branded Baijiu Products
In 2023, the Company continued with scientific placements to meet the consumer needs arising in the newera, continuously enhanced the Wuliangye brand's market presence, and fully committed itself to improving thequality and effectiveness of the marketing efforts of the Wuliangye brand.Firstly, the Company continued to boost its efforts in product development, with further strengthenedproduct strength. In line with the Company's "1+3" product matrix, new products such as Propitious PurpleWuliangye were launched, completing the development and sales of 18 cultural Baijiu products includingWanshou Tan and Panda-shaped liquor; continued to strengthen the market cultivation of Classic Wuliangye,focusing on the Baijiu market above the unit price of RMB2,000, achieving dual drive with the eighth generationWuliangye and Classic Wuliangye.
Secondly, the Company kept bolstering brand-building efforts, further elevating the brand's strength.It successfully hosted the second "Harmony Cultural Festival" and "Rose Wedding Ceremony", continuouslyboosting brand heat and reputation It named sponsorships of CCTV's Spring Festival Gala and Mid-AutumnFestival Gala and brought the brand exposure to over 11 billion interactions during the Spring Festival Gala. The"Harmony Gifts" interactive campaign during the Mid-Autumn Festival Gala saw more than 5.8 billion interactiveengagements; further deepened cooperation with mainstream media such as People's Daily and Xinhua NewsAgency, continued appearances at top-tier platforms like the Boao Forum for Asia, APEC, and the first "GoldenPanda" awards, effectively enhancing brand influence.
Thirdly, the Company continued to exert efforts in channel expansion, further solidifying the channelstrength. In terms of traditional channels, the Company added approximately 26,000 new core retail storesthroughout the year, with continuous improvement in retail sell-through. Besides, it initiated the "Three Stores,One House" construction, with currently over 1,600 exclusive stores covering more than 300 cities nationwide.Regarding emerging channels, it accelerated the layout on three major e-commerce platforms of Douyin,Kuaishou, and WeChat video accounts, making the online benchmark effect more pronounced.
2. Wuliang NongXiang products
In 2023, Wuliang NongXiang firmly embraced the strategic direction of "innovation with integrity whileexpanding territories". Centering on consumers, focusing on product sell-through, market segmentation andhierarchy construction, and consumer cultivation as key tasks, it employed flexible and practical empowerment,
ensuring steady progress in all areas of work.Firstly, product sell-through saw a significant increase. A concentrated effort was made to launch a majorcampaign for product sell-through, with the daily average participants in the “crack a bottle, scan the code, andwin a prize” activities increasing by more than 70% year on year. A noticeable increase in strengthening andenhancing distributors was observed, with segmented and hierarchical market creation achieving staged results.The construction of terminals saw improvements in both quantity and quality, with continuous efforts from e-commerce and KAs leading to ongoing improvements in the channel structure.
Secondly, consumer cultivation progressed steadily. Consumer cultivation was continuously pursuedthrough appreciation salons, Wuliangye cultural tours, fan meetings, and online platforms such as Xiaohongshuand Douyin, all aimed at fully facilitating sell-through.Thirdly, initial success was seen in cultural development. A proactive approach was adopted in integratinginto the "Harmonious Culture" system, making the brand images of Wuliang Chun (Spring) "Best of the Best,Wuliang Chun (Spring)", Wuliang Chun (Rich Flavour) "Rich Flavour of China, Enjoy a Better Life", WuliangTequ's craftsmanship culture, and Jianzhuang's "Century-old Jianzhuang, National Brand" more deeply ingrainedin people's hearts.
Finally, a noticeable improvement in market order was achieved. An enhancement in the brand structureand an optimisation of the regional layout were pursued, along with marketing model reform, brand culturedevelopment, and meticulous channel cultivation. These efforts led to products being sold at fair prices, thepurification of market order, and a further solidification of the market foundation.(III) Major Sales Models of the Company
Distribution model: This includes the traditional channel operator model, KA marketplace, etc., mainly soldoffline.
Direct-to-consumer model: This includes the group purchase model, where products are sold directly togroups of consumers, the exclusive store model for the retail end and consumer groups, and the online sales model,where products are sold through e-commerce platforms such as Tmall and JD.(IV) Distribution Model
? Applicable □ Not applicable
1. Operating Revenues, Costs of Sales and Gross Profit Margins of Different Sales Models and ProductCategories
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue | YoY change in cost of sales | YoY change in gross profit margin |
| By sales model | ||||||
| Liquor products | 76,447,093,245.62 | 13,824,929,799.19 | 81.92% | 13.15% | 12.92% | 0.04% |
| Of which: Distribution model | 45,985,002,791.57 | 9,790,021,620.52 | 78.71% | 13.56% | 12.50% | 0.20% |
| Direct-to-consumer model | 30,462,090,454.05 | 4,034,908,178.67 | 86.75% | 12.53% | 13.96% | -0.17% |
| By product category | ||||||
| Liquor products | 76,447,093,245.62 | 13,824,929,799.19 | 81.92% | 13.15% | 12.92% | 0.04% |
| Of which: Wuliangye-branded Baijiu products | 62,804,076,723.47 | 8,389,167,091.67 | 86.64% | 13.50% | 12.84% | 0.08% |
| Other liquor products | 13,643,016,522.15 | 5,435,762,707.52 | 60.16% | 11.58% | 13.05% | -0.51% |
2. Number of Distributors
| Region | Number of distributors of Wuliangye-branded Baijiu products | YoY change (number) | Reason for change (more than 30%) |
East China
| East China | 747 | 56 | N/A |
| South China | 455 | -13 |
| West China | 477 | 11 |
| North China | 354 | 3 |
Central China
| Central China | 537 | 24 |
| Subtotal | 2,570 | 81 |
| Region | Number of distributors of Wuliang NongXiang products | YoY change (number) |
| China | 814 | 159 |
| Total | 3,384 | 240 |
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiangproducts.
3. Main Settlement Methods and Dealing Methods of Distributor Customers
A distribution model is mainly used, with a "payment before delivery" settlement method. In the ReportingPeriod, the total sales revenue from the top five distributors reached RMB11.319 billion, accounting for 13.59%of the total sales revenue.
4. Retail Store Sales Accounting for More Than 10% of Total Sales
? Applicable □ Not applicable
| Region | Number of exclusive stores at the beginning of the Reporting Period | Number of exclusive stores at the end of the Reporting Period | Reason for change (more than 30%) |
| East China | 443 | 475 |
N/A
N/ASouth China
| South China | 292 | 285 |
West China
| West China | 286 | 280 |
| North China | 237 | 244 |
| Central China | 372 | 378 |
Total
| Total | 1,630 | 1,662 |
5. Online Direct-to-consumer Sales
? Applicable □ Not applicable
| Product category | Platform |
| Wuliangye-branded Baijiu products: | |
| The 8th-generation Wuliangye | Tmall, JD, and WeChat |
| Other liquor products: |
Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Wuliang Tequ, and Jianzhuang
| Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tequ, and Jianzhuang | Tmall, JD, and WeChat |
Indicate whether any of the major products that accounted for more than 10% of the total operating revenuein the current period saw a 30% or greater change in its selling price compared to the prior reporting period.
□ Applicable ? Not applicable
(V) Purchase Model and Purchased Items
Unit: RMB
| Purchase model | Purchased items | Amount |
| Market-based purchase | Raw materials and auxiliary materials, etc. | 9,692,068,001.76 |
| Market-based purchase | Packaging materials | 2,226,043,954.86 |
| Market-based purchase | Energy | 578,004,652.53 |
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30% ofthe total purchase amount.
□ Applicable ? Not applicable
Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%
year-on-year.
□ Applicable ? Not applicable
(VI) Main Production ModelsThe Company's Baijiu products are all produced by itself.Commissioned processing and production:
□ Applicable ? Not applicable
(VII) Production Volume and Inventory
1. Production Volume, Sales Volume and Inventory of Major Products
| Product | Opening inventory (ton) | Production volume (ton) | Sales volume (ton) | Closing inventory (ton) | ||||
| 2023 | YoY change | 2023 | YoY change | 2023 | YoY change | 2023 | YoY change | |
| Wuliangye-branded Baijiu products | 2,961 | 52.79% | 40,135 | 18.77% | 38,659 | 17.98% | 4,437 | 49.85% (note 2) |
| Other liquor products | 20,367 | 5.95% | 143,965 | 50.69% (note 2) | 120,447 | 27.60% | 43,885 | 115.47% (note 2) |
| Total | 23,328 | 10.24% | 184,100 | 42.35% | 159,106 | 25.12% | 48,322 | 107.14% |
Note 1: The liquor referred to in the table above is all commercial liquor.Note 2: Mainly because the Company’s primary products performed well in terms of sell-through, and theCompany actively stocked up for sales in the Spring Festival, leading to increases in the production volume andthe closing inventory.
2. Finished Liquor and Semi-finished Liquor (Including Base Liquor)
| Category | Inventory (ton) |
| Finished liquor | 48,322 |
| Semi-finished liquor (including base liquor in pottery jars) | 160,064 |
3. Designed, Actual and In-progress Production Capacity of Major Products by Production Entities
| Major product | Designed production capacity (’0,000 tons) | Actual production capacity (’0,000 tons) | Production capacity in progress (’0,000 tons) |
| Liquor | 17.5627 | 11.95928 | 6 |
Note: The liquor in the table above includes Baijiu and base fruit liquor.III Core Competitiveness AnalysisThe Company's unique five major competitive edges of the regions of production, ancient fermentation pitclusters, quality, brands, and consumer base constitute its irreplicable core competitiveness. During the ReportingPeriod, the Company's core competitiveness continued to strengthen.The first is the geographical competitiveness. The Yibin region of production, where the Company issituated, boasts a uniquely favourable natural ecological brewing environment of "water, soil, air, climate, andbiology". It has been recognised by United Nations Educational, Scientific and Cultural Organization (UNESCO)and Food and Agricultural Organization (FAO) as "the most suitable region in the same latitude for producinghigh-quality, pure distilled Baijiu", making it one of the world's top ten regions of production of spirits. In 2023, itwas awarded the title of "China's Wuliang NongXiang Core Region of Production".The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pitclusters of the Yuan and Ming dynasties, represented by Changfasheng and Lichuanyong, are the earliest andlargest cave-type ancient fermentation pits in China with uninterrupted production and have been in existence formore than 656 years, which have scarcity value that is unrepeatable and non-reproducible. Four new microbialspecies named after Wuliangye have been discovered in ancient fermentation pits from the Ming and Qingdynasties, profoundly interpreting the richness, complexity, and uniqueness of the brewing microorganisms ofWuliangye from a scientific perspective.
Quality represents the third competitive edge. Wuliangye possesses the unique "1366" traditionalproduction technique that has been identified as a national intangible cultural heritage. It boasts the most in theindustry with 12 individuals recognised as Chinese Baijiu Masters, Chinese Brewing Masters, and Chinese BaijiuTechnique Masters. A complete quality management model "from seed to liquor" has been established, which hasfour times been awarded the highest honour in China's quality management field, the "National Quality Award".
The fourth is the brand strength. Wuliangye's brand culture has profound historical roots with a history ofover a thousand years, beginning in the Tang dynasty, emerging in the Song dynasty, refined in the Yuan dynasty,becoming famous in the Ming dynasty, and establishing the brand name in the Qing dynasty. It possesses a uniqueculture encapsulated by five-character mottoes, ancient fermentation pit culture, and a rich poetic and Baijiutradition. The advocacy of a harmonious culture of “harmonious common prosperity” continues to be prominentlydisplayed; the brand value has exceeded RMB400 billion, with the brand strength index receiving the highestglobal AAA+ rating for two consecutive years, ranking first among Baijiu brands.Finally, the consumer base. Strong-flavored Baijiu is the Baijiu category with the highest market share andthe largest consumer base. Being famous worldwide for its unique style of "lasting aroma, mellow, pleasant andsmooth taste, and harmonious, well-balanced and comprehensive flavors", Wuliangye has a wide and solidconsumer base. Notably, the industry's pioneering low-alcohol Baijiu possesses a unique competitive advantage incultivating a young consumer demographic.IV Analysis of Principal Operations
1. Overview
During the Reporting Period, the Company adhered to the overall work principle of "focusing on stability,seeking progress in stability, improving quality and efficiency, as well as making more contributions". It preciselyfocused its efforts on four aspects: superior products, strong brands, advanced innovation and modern governance,reaching a new level of development. In 2023, the Company achieved operating revenue of RMB83.272 billion,up 12.58% year on year, and a net profit attributable to its shareholders of RMB30.211 billion, up 13.19% year onyear.
Firstly, the support from superior products has been further strengthened. The support for quality hascontinuously improved, with the production volume of famous liquors reaching an all-time high; the fast growthprogramme has been orderly advanced, with the first phase of the 100,000-ton ecological brewing project startingproduction; two additional Chinese Brewing Masters have been added. The product mix has been continuallyperfected, with the launch of the Propitious Purple Wuliangye; the development and sales of 18 cultural Baijiuproducts have been completed; the Classic 50 has won the iF Design Award. Quality management hascontinuously been enhanced, with the Company being the only one in the industry shortlisted for the NominationAward of the Fifth China Quality Award; it has won the "National Typical Cases of Quality Reform andInnovation of Chief Quality Officers" and two gold awards at the 48th International Convention on QualityControl Circles (ICQCC); optimisation has yielded the best Qu-preparation Production Technique knowledge mapand an expert analysis and judgment system, earning the title of "National Quality Benchmark".
Secondly, the pulling force of strong brands has been further solidified. Brand cultural promotion hasbeen continuously strengthened, with deep participation in CCTV's Year of the Rabbit Spring Festival Gala andMid-Autumn Festival Gala, bringing brand impressions to over 11 billion during the Spring Festival Gala andover 5.8 billion engagements for "Harmony Gifts" during the Mid-Autumn Festival Gala, benefiting millions ofhouseholds with the joy of "Harmony Gifts". Further deep integration with high-end platforms such as APEC,Boao Forum for Asia, and China International Import Expo (CIIE), along with successful collaboration with theInternational Finance Forum, World Laureates Forum, Golden Panda Awards, and China International ConsumerProducts Expo, has crafted a high-profile brand image. Brand cultural expression has been continuously innovated.We successfully held cultural IP events such as the Harmony Cultural Festival, Happy China Festival, and RoseWedding Ceremony; launched "Wuliangye Harmony Global Tour", leading "Sichuan Liquor Global Tour";sponsored high-quality programmes like CCTV's "Beauty in Harmony", Hunan TV's "Chinese Restaurant" and"New Year’s Eve Gala"; won three national brand communication awards. The foundation of brand culturecontinued to be solidified. The Company completed the conservation and restoration projects of the"Changfasheng" and "Lichuanyong" ancient fermentation pit sites, launched the "Archaeological Wuliangye"Phase II project, actively pushed for the declaration of Chinese Baijiu traditional workshops as World CulturalHeritage, and was selected as a national excellent industrial heritage protection and utilisation demonstration case.
Besides, it won the first-class award in National Culture Outstanding Achievement, and was selected again for theHurun Most Successful Chinese Heritage Brands 2023.
Thirdly, the driving force behind innovative development has been further enhanced. Platformconstruction has achieved significant success, with the National Enterprise Technology Centre maintaining the topscore in the National Development and Reform Commission's annual assessment within the industry, the NationalIndustrial Design Centre smoothly passing the Ministry of Industry and Information Technology of the People'sRepublic of China's re-evaluation, and successfully establishing the industry's first Chinese Baijiu IndustryCultural and Technological Innovation Centre. Technical breakthrough efforts have continued to intensify, as theCompany attained three provincial and ministerial-level science and technology first-class awards. It alsocompleted the "Analysis of Wuliangye's Baobaoqu Enzyme Spectrum and Enzyme-producing Microflora" andtwo other achievements, all reaching an "international leading level". The talent team has been continuouslystrengthened, with the establishment of the National High-Skilled Talent Training Base and the "Cao Hongying"National Skills Master Studio. Specifically, we had three more State Council Special Allowance Experts, 12 morenational Baijiu judges, and five more provincial high-end talents (including Skilled Masters in Sichuan Provinceand talents included in the Tianfu Qingcheng Programme).
Fourthly, the assurance of modern governance has been further solidified. The Company is committedto integrating the leadership of the Party into corporate governance, winning the excellent model case for NationalState-owned Enterprises Party Building Brand Construction and the Best Practice Case 2023 for Board ofDirectors of Listed Companies. Efforts were made to enhance the Company's ESG management level, whichearned the Best Practice Case 2023 for ESG of Listed Companies, and was selected as an excellent model case forcarbon-peaking, carbon-neutral and green development by the National Development and Reform Commission in2023, a model case for serving green development by China International Fair for Trade in Services (CIFTIS), amodel case for serving the Belt and Road Initiative by People's Daily, and an excellent model case of UN 2023SDG Summit.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| 2023 | 2022 | Change (%) | |||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 83,272,067,317.19 | 100% | 73,968,640,704.54 | 100% | 12.58% |
| By operating division | |||||
| Manufacturing | 83,272,067,317.19 | 100.00% | 73,968,640,704.54 | 100.00% | 12.58% |
| By product category | |||||
| Liquor products | 76,447,093,245.62 | 91.80% | 67,562,646,631.24 | 91.34% | 13.15% |
| Plastic products | 3,186,751,790.54 | 3.83% | 3,201,867,776.04 | 4.33% | -0.47% |
| Printing | 148,586,388.77 | 0.18% | 138,273,774.15 | 0.19% | 7.46% |
| Glass bottles | 121,727,109.44 | 0.15% | 119,011,295.97 | 0.16% | 2.28% |
| Other | 3,367,908,782.82 | 4.04% | 2,946,841,227.14 | 3.98% | 14.29% |
| By operating segment | |||||
| Liquor products | 76,447,093,245.62 | 91.80% | 67,562,646,631.24 | 91.34% | 13.15% |
| Of which: East China | 22,388,529,236.37 | 26.89% | 18,985,619,872.12 | 25.67% | 17.92% |
| South China | 6,810,441,782.70 | 8.18% | 7,481,640,730.11 | 10.11% | -8.97% |
| West China | 26,215,491,173.54 | 31.48% | 21,538,460,675.15 | 29.12% | 21.71% |
| North China | 8,074,372,025.55 | 9.70% | 8,414,668,164.38 | 11.38% | -4.04% |
| Central China | 12,958,259,027.46 | 15.56% | 11,142,257,189.48 | 15.06% | 16.30% |
| Non-liquor products | 6,824,974,071.57 | 8.20% | 6,405,994,073.30 | 8.66% | 6.54% |
| By sales model | |||||
| Liquor products | 76,447,093,245.62 | 91.80% | 67,562,646,631.24 | 91.34% | 13.15% |
| Of which: Distribution model | 45,985,002,791.57 | 55.22% | 40,492,386,915.69 | 54.74% | 13.56% |
| Direct-to-consumer model | 30,462,090,454.05 | 36.58% | 27,070,259,715.55 | 36.60% | 12.53% |
| Non-liquor products | 6,824,974,071.57 | 8.20% | 6,405,994,073.30 | 8.66% | 6.54% |
(2) Operating Division, Product Category, Operating Segment or Sales Model Contributing over 10% ofOperating Revenue or Operating Profit
? Applicable □ Not applicable
Unit: RMB
| Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| Manufacturing (liquor production) | 76,447,093,245.62 | 13,824,929,799.19 | 81.92% | 13.15% | 12.92% | 0.04% |
| By product category | ||||||
| Liquor products | 76,447,093,245.62 | 13,824,929,799.19 | 81.92% | 13.15% | 12.92% | 0.04% |
| Of which: Wuliangye-branded Baijiu products | 62,804,076,723.47 | 8,389,167,091.67 | 86.64% | 13.50% | 12.84% | 0.08% |
| Other liquor products | 13,643,016,522.15 | 5,435,762,707.52 | 60.16% | 11.58% | 13.05% | -0.51% |
| By operating segment | ||||||
| Liquor products | 76,447,093,245.62 | 13,824,929,799.19 | 81.92% | 13.15% | 12.92% | 0.04% |
| Of which: East China | 22,388,529,236.37 | 3,340,594,216.75 | 85.08% | 17.92% | 18.86% | -0.12% |
| South China | 6,810,441,782.70 | 993,558,777.69 | 85.41% | -8.97% | -11.83% | 0.47% |
| West China | 26,215,491,173.54 | 6,047,557,225.84 | 76.93% | 21.71% | 27.82% | -1.10% |
| North China | 8,074,372,025.55 | 1,147,821,771.10 | 85.78% | -4.04% | -2.82% | -0.18% |
| Central China | 12,958,259,027.46 | 2,295,397,807.81 | 82.29% | 16.30% | -4.08% | 3.77% |
| By sales model | ||||||
| Liquor products | 76,447,093,245.62 | 13,824,929,799.19 | 81.92% | 13.15% | 12.92% | 0.04% |
| Of which: Distribution model | 45,985,002,791.57 | 9,790,021,620.52 | 78.71% | 13.56% | 12.50% | 0.20% |
| Direct-to-consumer model | 30,462,090,454.05 | 4,034,908,178.67 | 86.75% | 12.53% | 13.96% | -0.17% |
Data of principal operations for the prior period adjusted according to the changed methods of measurementthat occurred in the Reporting Period (if any):
□ Applicable ? Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
? Yes □ No
| Operating division | Item | Unit | 2023 | 2022 | Change (%) |
| Liquor | Sales volume | Metric ton | 159,106 | 127,161 | 25.12% |
| Production volume | Metric ton | 184,100 | 129,328 | 42.35% (note) | |
| Inventory | Metric ton | 48,322 | 23,328 | 107.14% (note) |
Any over 30% YoY movements in the data above and why:
? Applicable □ Not applicable
Note: Mainly because the Company’s primary products performed well in terms of sell-through, and theCompany actively stocked up for sales in the Spring Festival, leading to increases in the production volume andthe closing inventory.
(4) Execution Progress of Significant Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
| Operating division | Item | 2023 | 2022 | Change in percentage | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Manufacturing | Raw materials | 10,808,905,910.26 | 53.62% | 9,599,577,215.97 | 52.81% | 0.81% |
| Labor cost | 6,073,522,534.43 | 30.13% | 5,705,800,119.67 | 31.39% | -1.26% | |
| Energy | 1,110,881,004.71 | 5.51% | 934,705,836.04 | 5.14% | 0.37% | |
| Production cost | 2,163,834,502.81 | 10.73% | 1,938,342,487.96 | 10.66% | 0.07% | |
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ No
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, theCompany’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in 2023.
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, theCompany’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited hasincorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’anPlastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’anPlastic.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 11,318,834,108.05 |
| Total sales to top five customers as % of total sales in the Reporting Period (%) | 13.59% |
| Total sales to related parties among top five customers as % of | 0.00% |
total sales in the Reporting Period (%)
Top five customers:
| No. | Customer | Sales to the customer (RMB) | As % of total sales in the Reporting Period (%) |
| 1 | Customer A | 2,809,746,439.77 | 3.37% |
| 2 | Customer B | 2,516,093,693.37 | 3.02% |
| 3 | Customer C | 2,214,700,085.98 | 2.66% |
| 4 | Customer D | 1,953,953,403.20 | 2.35% |
| 5 | Customer E | 1,824,340,485.73 | 2.19% |
| Total | -- | 11,318,834,108.05 | 13.59% |
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 2,253,921,896.08 |
| Total purchases from top five suppliers as % of total purchases in the Reporting Period (%) | 16.57% |
| Total purchases from related parties among top five suppliers as % of total purchases in the Reporting Period (%) | 8.37% |
Top five suppliers:
| No. | Supplier | Purchases (RMB) | As % of total purchases in the Reporting Period (%) |
| 1 | Supplier A | 803,492,724.65 | 5.91% |
| 2 | Supplier B | 402,218,642.87 | 2.96% |
| 3 | Supplier C | 366,544,784.89 | 2.69% |
| 4 | Supplier D | 345,907,293.22 | 2.54% |
| 5 | Supplier E | 335,758,450.45 | 2.47% |
| Total | -- | 2,253,921,896.08 | 16.57% |
Other information about major suppliers:
□ Applicable ? Not applicable
3. Expenses
Unit: RMB
| 2023 | 2022 | Change (%) | Main reason for any significant change | |
| Selling expense | 7,796,298,418.13 | 6,844,237,013.17 | 13.91% | |
| Administrative expense | 3,319,445,339.77 | 3,068,119,268.45 | 8.19% | |
| Finance costs | -2,473,170,676.27 | -2,026,351,047.92 | N/A | |
| R&D expense | 321,845,165.28 | 235,783,645.79 | 36.50% | Greater investments in R&D projects such as production techniques |
The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
(1) Breakdown of Selling Expense
Unit: RMB
| Item | 2023 | 2022 | Change (%) | Reason for change | ||
| Amount | As % of selling expense | Amount | As % of selling expense | |||
| Image promotion expense | 1,433,975,889.27 | 18.39% | 1,240,440,205.34 | 18.12% | 15.60% | |
| Sales promotion expense | 4,540,282,674.32 | 58.24% | 3,889,326,216.67 | 56.83% | 16.74% | |
| Warehousing and logistics expense | 546,674,750.94 | 7.01% | 476,754,635.74 | 6.97% | 14.67% | |
| Labor cost | 735,243,412.93 | 9.43% | 718,179,395.38 | 10.49% | 2.38% | |
| Other expenses | 540,121,690.67 | 6.93% | 519,536,560.04 | 7.59% | 3.96% | |
| Total | 7,796,298,418.13 | 6,844,237,013.17 | 13.91% | |||
(2) Advertising Expense
During 2023, the Company’s primary advertising means included TV, broadcasting, Internet, outdoor adsand exhibitions. The expenses on online, offline and TV ads were RMB181 million, RMB678 million andRMB575 million, respectively.
4. R&D Investments
? Applicable □ Not applicable
| Main R&D project | Purpose | Progress | Specific objectives | Expected impact on the Company |
| Building and Industrial Application of China's Repository of Microbial Strains for Liquor | The establishment of China's Baijiu Microbial Strain Resource Bank effectively protects the diversity of China's Baijiu brewing microbial strains. It achieves standardised collection, quality control, professional preservation, comprehensive traceability, and digital management of important strains, ensuring deep exploration and efficient, controllable utilisation of core resources. This fosters the protection of microbial resource diversity in the Baijiu industry and its sustainable utilisation. | (1) Strains with distinct functional traits and clear traceability backgrounds have been explored and preserved. More than 400 types, over 1,000 strains, and above 20,000 backups of Wuliangye brewing microbial strains were collected, leading to the establishment of the China Baijiu Microbial Strain Bank, encompassing core types of Baijiu brewing microbial strains. (2) Five new strains of Baijiu brewing functional microbes have been discovered and effectively published. (3) A full-life-cycle evaluation and application technology system for strain resources have been developed, enabling the industrial application of these strains. (4) Sixteen articles have been published, eight invention patents awarded, and one software copyright obtained, positioning the overall technical level at an internationally advanced level. (5) The "Baijiu Microbiological Research Branch of the China Centre of Industrial Culture Collection" title was bestowed upon the project. | By establishing the China Baijiu Microbial Strain Bank, which covers core microbial strain types for Baijiu brewing, the project aims to become the largest enterprise microbial strain bank in China's liquor industry, providing a robust resource foundation for the industry's sustainable development. | Through the protection of Wuliangye's rare brewing resources and the continuous improvement in the rate of famous liquors, strong germplasm resources and technical support are provided for the Company’s high-quality development. The safety and stability of the core microbial community in Baijiu brewing are ensured, promoting the high-quality development of China's Baijiu industry. |
| Research on the replication of the pit mud engineering technology with modern biotechnology and its application in the Wuliangye high-quality and fast growth programme | The project is designed to replicate the similar function of naturally ageing pit mud with modern biotechnology and obtain man-made ageing pit mud with a similar flavour of naturally ageing pit mud and microbial flora during brewing, thereby enabling man-made pit mud to rapidly age and contributing to the construction of the new plant. | (1) The new strain of yeast (code: LY-L-M-1; Chinese name: 空气丛梗孢酵母菌) has been obtained. (2) The new strain of Clostridium bacteria that produces various beneficial Baijiu flavour components (code: WLY-B-L2; Chinese name: 产香梭状芽孢杆菌) has been obtained. (3) Several unique new strains of Wuliangye brewing have been discovered internationally, and progress has been made in engineering applications, with the overall technological level reaching an internationally advanced level. | The project aims to screen functional microorganisms in the pit mud and use them for man-made ageing of the pit mud and conduct a large-scale production and application demonstration in Wuliangye Baijiu production workshops. | The project will expedite the ageing of the new fermentation pits and pit mud, continuously increase the yield rate of famous liquor, and help Wuliangye safeguard its advantageous position as China's largest brewing base using the pure-grain solid fermentation technique, keep in alignment with the development trend of the Baijiu industry, meet people's increasing demand for quality Baijiu, and consolidate Wuliangye's status as a leader in strong-flavoured Baijiu. |
| Development of Wuliangye intelligent brewing production line and research on supporting production technique | The project is designed to inherit the essence of the traditional production technique and develop intelligent bionic brewing equipment by focusing on the core brewing process of Wuliangye, thereby reducing labour intensity during production, improving production efficiency, and promoting the perfect integration of the traditional production technique and modern technology. | (1) The intelligent brewing key equipment developed by the project has been expanded for application in the intelligent brewing demonstration workshop of the first phase of fast growth programme. (2) In 2023, six new patent applications were filed in the direction of core equipment for intelligent brewing, including three invention patents and three utility model patents. The total number of patent applications has exceeded 70. | The project aims to establish a workshop-level platform for the transformation of technological innovation achievements, achieving scaled production demonstration applications. | The dissemination and application of the project result will enable the bionic equipment to imitate flexible manual operation, achieve the scientific analysis of the traditional brewing technique, and transform the experience- and skill-dominated production process toward a human-machine collaborative production process. This will help inherit the traditional production technique, stabilize the traditional production technique operation, lower labour costs of brewing lines and boost the production efficiency. |
Particulars about R&D personnel:
| 2023 | 2022 | Change (%) | |
| Number of R&D personnel | 2,576 | 2,574 | 0.08% |
| R&D personnel as % of total employees | 10.26% | 10.11% | 0.15% |
| Educational background of R&D personnel | |||
| Bachelor’s degree | 916 | 915 | 0.11% |
| Master’s degree | 172 | 171 | 0.58% |
| Doctoral degree | 21 | 14 | 50.00% |
| Age structure of R&D personnel | |||
| Below 30 | 752 | 860 | -12.56% |
| 30~40 | 1,091 | 987 | 10.54% |
| Over 40 | 733 | 727 | 0.83% |
Particulars about R&D investments:
| 2023 | 2022 | Change (%) | |
| R&D investments (RMB) | 321,845,165.28 | 235,783,645.79 | 36.50% (note) |
| R&D investments as % of operating revenue | 0.39% | 0.32% | 0.07% |
| Capitalized R&D investments (RMB) | 0.00 | 0.00 | 0.00% |
| Capitalized R&D investments as % of total R&D investments | 0.00% | 0.00% | 0.00% |
Note: Mainly due to greater investments in R&D projects such as production techniques.Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
5. Cash Flows
Unit: RMB
| Item | 2023 | 2022 | Change (%) |
| Subtotal of cash generated from operating activities | 107,762,271,480.99 | 83,849,102,992.33 | 28.52% |
| Subtotal of cash used in operating activities | 66,019,791,572.76 | 59,417,966,730.85 | 11.11% |
| Net cash generated from/used in operating activities | 41,742,479,908.23 | 24,431,136,261.48 | 70.86% (note 1) |
| Subtotal of cash generated from investing activities | 25,404,357.88 | 69,705,342.99 | -63.55% (note 2) |
| Subtotal of cash used in investing activities | 2,957,236,682.34 | 1,786,159,893.52 | 65.56% (note 3) |
| Net cash generated from/used in investing activities | -2,931,832,324.46 | -1,716,454,550.53 | N/A |
| Subtotal of cash generated from financing activities | 22,618,764.59 | N/A | |
| Subtotal of cash used in financing activities | 16,322,853,342.68 | 13,105,431,458.20 | 24.55% |
| Net cash generated from/used in financing activities | -16,300,234,578.09 | -13,105,431,458.20 | N/A |
| Net increase in cash and cash | 22,511,040,326.64 | 9,609,386,518.94 | 134.26% (note 4) |
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
? Applicable □ Not applicableNote 1: This is primarily driven by the increased cash generated from operating activities. Firstly, due toconsumption recovery in the year, the Company saw a higher percentage of cash settlement with its customers anda higher amount of cash collected on due bank acceptance bills, resulting in a significant increase in cash proceedsfrom sale of goods and rendering of services. Secondly, to cope with market changes in the same period of lastyear, the Company lowered the percentage of cash settlement with its customers, leading to a lower base of cashproceeds from sale of goods and rendering of services.Note 2: This is primarily driven by a higher base of net proceeds from the disposal of fixed assets, intangibleassets and other long-term assets in the same period of last year.Note 3: This is primarily because the Company accelerated the high quality and fast growth programme.Major projects progressed well, including the “Liquor Packaging and Integrated Smart Storage-and-deliveryProject”, the “Baijiu Cellar Renovation Project”, and the “100,000-ton Ecological Brewery Project”, among others,leading to the increased construction expenditures that were settled in the Reporting Period.Note 4: This is primarily driven by the significantly increased net cash generated from operating activities,and the increased financing costs as a result of increased construction investments and a higher amount ofdividend payout, in the Reporting Period.
Explanation of why the net cash generated from/used in operating activities varies significantly from the netprofit of the Reporting Period:
□ Applicable ? Not applicable
V Analysis of Non-Core Businesses
□ Applicable ? Not applicable
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| 31 December 2023 | 1 January 2023 | Change in percentage (%) | Reason for any significant change | |||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary assets | 115,456,300,910.64 | 69.79% | 92,358,426,975.79 | 60.44% | 9.35% | |
| Accounts receivable | 42,647,461.48 | 0.03% | 35,686,942.32 | 0.02% | 0.01% | |
| Inventories | 17,387,841,712.87 | 10.51% | 15,980,657,013.57 | 10.46% | 0.05% | |
| Long-term equity investments | 2,020,366,240.69 | 1.22% | 1,986,387,524.78 | 1.30% | -0.08% | |
| Fixed assets | 5,189,917,302.17 | 3.14% | 5,312,971,445.61 | 3.48% | -0.34% | |
| Construction in progress | 5,623,356,422.20 | 3.40% | 3,773,155,983.95 | 2.47% | 0.93% | |
| Right-of-use assets | 126,810,315.49 | 0.08% | 380,922,885.84 | 0.25% | -0.17% | |
| Contract liabilities | 6,864,383,635.25 | 4.15% | 12,379,125,542.70 | 8.10% | -3.95% | |
| Lease liabilities | 115,722,608.68 | 0.07% | 16,976,148.73 | 0.01% | 0.06% | |
Indicate whether overseas assets account for a large proportion in total assets.
□ Applicable ? Not applicable
2. Assets and Liabilities Measured at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Opening amount | Gain/loss on fair-value changes in the current period | Cumulative fair-value changes recognized in equity | Impairment allowance for the current period | Purchased in the current period | Sold in the current period | Other changes | Closing amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (exclusive of derivative financial assets) | 1,200,000.00 | 1,200,000.00 | ||||||
| 2. Derivative financial assets | ||||||||
| 3. Other debt investments | ||||||||
| 4. Other equity investments | ||||||||
| 5. Receivables financing | 28,904,198,420.44 | -14,817,747,854.65 | 14,086,450,565.79 | |||||
| Subtotal of financial assets | 28,905,398,420.44 | -14,817,747,854.65 | 14,087,650,565.79 | |||||
| Investment property | ||||||||
| Productive living assets | ||||||||
| Other | ||||||||
| Total of the above | 28,905,398,420.44 | -14,817,747,854.65 | 14,087,650,565.79 | |||||
| Financial liabilities | ||||||||
Contents of other changes:
The Company classified the portion of bank acceptance bills received that were to be endorsed or discountedas receivables financing, and other changes during the current period represented the net amount recognized andutilized during the current period.Indicate whether any significant change occurred to the measurement attributes of the major assets in theReporting Period.
□ Yes ? No
3. Restricted Assets as at the Period-end
? Applicable □ Not applicable
Unit: RMB
| Item | Closing carrying amount | Reason for restriction |
| Monetary assets | 200,977,259.48 | Security deposits for bank acceptance bills, other security deposits, and the balance in the securities trading account with the Yibin Business Department of Essence Securities |
| Total | 200,977,259.48 |
VII Investment Analysis
1. Total Investment Amount
□ Applicable ? Not applicable
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable ? Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable ? Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable ? Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable ? Not applicable
IX Principal Subsidiaries and Joint Stock Companies
? Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Equity |
| Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Liquor-related operations | 200,000,000.00 | 53,671,050,000.91 | 34,044,032,795.50 |
Unit: RMB
| Name | Relationship with the Company | Principal activities | Operating revenue | Operating profit | Net profit |
| Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Liquor-related operations | 61,829,117,337.04 | 28,613,019,005.80 | 21,444,587,912.50 |
Subsidiaries acquired or disposed of in the Reporting Period:
□ Applicable ? Not applicable
X Structured Entities Controlled by the Company
□ Applicable ? Not applicable
XI Prospects(I) Industry Landscape and TrendsStrong brands, top producers, and major regions of production are the greatest ballasts and stabilisers for thehigh-quality development of the Baijiu industry. The future development of the Baijiu industry is highly certain,with structural growth still being the main theme and tune. Industry differentiation and concentration will furtherintensify.Firstly, the development of the industry is supported by the continuous improvement of themacroeconomy. China's economy is rebounding well, and the primary trend of long-term improvement remainsunchanged, with residents' consumption capacity and expectations continuing to improve. The CentralGovernment has designated 2024 as the "Year of Consumption Promotion", making "expanding domestic demandand promoting consumption" a key point of the economic work for 2024. This will further stimulate the release ofresidents' consumption potential, driving consumption from post-pandemic recovery to continuous expansion,which bodes well for the sustained growth in Baijiu consumption demand.Secondly, industrial policies continue to bolster the industry's development. In 2023, the Ministry ofIndustry and Information Technology of the People's Republic of China and 11 other departments jointly issuedthe Guidelines on Cultivating Traditional Advantageous Food Production Regions and Local Specialty FoodIndustries, focused on forming new economic development drivers, encouraging high-quality Baijiu toconcentrate in quality production regions. The Ministry of Industry and Information Technology of the People'sRepublic of China and two other departments jointly issued the Light Industry Steady Growth Work Plan, whichexplicitly proposes further strengthening Baijiu and other specialty food industry clusters. CPC Sichuan ProvincialCommittee, and the People's Government of Sichuan Province have explicitly proposed implementing a fastgrowth programme to promote high quality and fast growth of the food and textiles industries, centered on Baijiu,and to build a world-class premium Baijiu industry cluster. The Opinions on Supporting Yibin and Luzhou toForm a Group to Build the Southern Sichuan Provincial Economic Sub-Centre were issued, clearly proposing theimplementation of a high-quality Baijiu "Mount Qomolangma Climbing" plan to further enhance the globalcompetitiveness of the high-quality Baijiu industry.Thirdly, the aspiration for a better life leads the industry's development. Baijiu is an important carrierfor meeting people's aspirations for a better life. The cultural carrier characteristics and social attributes of Baijiuwill not change. The Baijiu industry continues to explore new opportunities and open new situations by deepeningsupply-side structural reforms. As consumer demographics become younger and demand for quality increases, themarket's demand for Baijiu gradually shows diversity, individualisation, and health-conscious characteristics. As aleading and advantageous company, we continuously push forward with innovations in liquor body, products, andscenarios, precisely explore consumers' real demands, effectively tap into potential demands, vigorously cultivatevalid demands, and lead new demand creation with new supplies, which will effectively promote the sustainedhigh-quality development of the Baijiu industry.
(II) Development Strategies of the Company: Wuliangye will persist in taking quality, culture, integrityand innovation as the foundation, and vigorously implement the 135 development strategy. It will promote thethree major programmes of quality brands, marketing innovation and high-quality & fast growth, making everyeffort to build an ecological and quality-oriented Wuliangye with culture as the foundation, digital transformationas the driver and sound corporate governance as the support. With a focus on enhancing the Wuliangye brandvalue, continuous efforts will be made to strengthen brand quality, consumer cultivation, and channel profitability,driving the price to quickly align with the reasonable return to brand value, and fully promoting the Company toachieve qualitative enhancement and rational growth in quantity.(III) Completion of the Business Plan for 2023
1. Planning at the beginning of the year: The Company would strive for a double-digit growth in operatingrevenue in 2023.
2. Realities: In 2023, the Company achieved operating revenue of RMB83.272 billion, up 12.58% year onyear.
(IV) Development Goals for 2024
The Company's operation goal: The consolidation and enhancement of a stable development trend and acontinued double-digit growth in operating revenue.
2024 marks the 75th anniversary of the founding of the People's Republic of China, and it is a crucial yearfor achieving the objectives and tasks outlined in the 14th Five-Year Plan. The Company will steadfastly adhere tothe guidance of Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, thoroughlyimplement the key spirit and instructions of the 20th National Congress of the Communist Party of China and the
second plenary session of the 20th Central Committee, as well as General Secretary Xi Jinping's visit to Sichuanand Yibin. The Company is committed to fully implementing the decisions and arrangements of the ProvincialParty Committee and Provincial Government, the Municipal Party Committee and Municipal Government,following the general principle of "staying politically aware, driving development, improving people's livelihood,ensuring safety, and delivering first-class performance". In accordance with the overall tone of "seeking progressin stability, maintaining stability with progress, improving quality and efficiency, as well as making morecontributions", the Company insists on taking quality, culture, integrity and innovation as the foundation. It aimsto balance the immediate and long-term needs, high-quality development and high-level safety, as well aseffective improvement in quality with rational growth in quantity. The Company is dedicated to accelerating thepace of high-quality development and striving to become a world-leading enterprise with superior products, strongbrands, advanced innovation and modern governance.(V) Potential RisksFirstly, there may be uncertainties in the environment at home and abroad; secondly, valid demand may notbe recovering in an expected pace; and finally, competition in the industry, especially among the top players, maybe increasingly intense.XII Researches, Inquiries, Interviews, etc. Received during the Reporting Period? Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 5 January 2023 | Yibin | Through an online platform | Institution | Golden Eagle Fund, Hongkang Life Insurance, Pengshan Partners, China International Fund Management, etc. | The Company’s development strategies, production and operation status | http://www.cninfo.com.cn |
| 11 January 2023 | Yibin | One-on-one meeting | Institution | First Seafront, Huaxi Securities | ||
| 18 January 2023 | Yibin | Through an online platform | Institution | E Fund, Huashang Fund, Zhongtai Asset Management, Tongben Invest, Ping An Asset Management, Yinhua Fund, etc. | ||
| 31 January 2023 | Chengdu | Securities firm’s investment strategy conference | Institution | China Universal, AEGON-INDUSTRIAL Fund, ICBC Credit Suisse Asset Management, etc. | ||
| 1 February 2023 | Yibin | One-on-one meeting | Institution | E Fund, CCB Principal Asset Management, Nuode Asset Management, etc. | ||
| 6 February 2023 | Chengdu | Securities firm’s investment strategy conference | Institution | Huatai Insurance, Kaifeng Invest, Nanjing Self-operated, Xintai Life Insurance, etc. | ||
| 8 February 2023 | Changsha | Securities firm’s investment strategy conference | Institution | HuaAn Fund, Guotai Asset Management, Tianhong Fund, Ping An Asset Management, etc. | ||
| 9 February 2023 | Shenzhen | Securities firm’s investment | Institution | Longrising, Perseverance Asset Management, Bosera Fund, GF Asset |
| strategy conference | Management, etc. | |||
| 16 February 2023 | Yibin | One-on-one meeting | Institution | Norges Bank, Capital Group, Central Asset, Coatue, etc. |
| 21 February 2023 | Yibin | One-on-one meeting | Institution | E Fund, Yinhua Fund |
| 23 February 2023 | Shenzhen | Securities firm’s investment strategy conference | Institution | China Merchants Fund, New China Asset Management, Great Wall Fund, etc. |
| 10 March 2023 | Yibin | One-on-one meeting | Institution | Franklin Templeton, GaoTeng Global, Ping An Asset Management, etc. |
| 16 March 2023 | Xiamen | Securities firm’s investment strategy conference | Institution | China Universal, Orient Securities Asset Management, GF Fund Management |
| 21 March 2023 | Hong Kong | Securities firm’s investment strategy conference | Institution | Goldman Sachs Gaohua, CICC, HSBC Qianhai, Credit Suisse Founder Securities, etc. |
| 28 March 2023 | Nanchang | Securities firm’s investment strategy conference | Institution | Zhengfubang, Guotai Asset Management, Morgan Stanley Huaxin, and other institution investors |
| 11 May 2023 | Shanghai | Securities firm’s investment strategy conference | Institution | Maxwealth Fund, FuanFund, China International Fund Management, Huatai Fund Management, etc. |
| 17 May 2023 | Yibin | By phone | Institution | Haitong Securities, etc. |
| 26 May 2023 | Yibin | 2022 Annual General Meeting of Shareholders | Institution and individual | E Fund, Central Huijin, Invesco Great Wall Fund Management, individual shareholders, etc. |
| 1 June 2023 | Shanghai | Securities firm’s investment strategy conference | Institution | JPMorgan Chase, Huatai Securities, China Merchants Securities, etc. |
| 8 June 2023 | Beijing | Securities firm’s investment strategy conference | Institution | Guotai Asset Management, China Post Securities, etc. |
| 14 June 2023 | Shanghai | Securities firm’s investment strategy conference | Institution | Amundi BOC Wealth Management, ICBC AXA, Western Leadbank, etc. |
| 26 June 2023 | Changsha | Securities firm’s | Institution | Golden Sun Securities, etc. |
| investment strategy conference | ||||
| 6 July 2023 | Shanghai | Securities firm’s investment strategy conference | Institution | Shenwan Hongyuan, CITIC Securities, etc. |
| 13 July 2023 | Yibin | One-on-one meeting | Institution | Zheshang Securities, CICC, etc. |
| 29 August 2023 | Yibin | Through an online platform | Institution | Haitong Securities, etc. |
| 7 September 2023 | Beijing | Securities firm’s investment strategy conference | Institution | Huachuang Securities, etc. |
| 19 September 2023 | Yibin | One-on-one meeting | Institution | CITIC Securities, CLSA, GF Securities, etc. |
| 11 October 2023 | Yibin | One-on-one meeting | Institution | Cederberg Capital Limitied, etc. |
| 31 October 2023 | Changsha | Securities firm’s investment strategy conference | Institution | Tianfeng Securities, Founder Securities, etc. |
| 8 November 2023 | Yibin | One-on-one meeting | Institution | Guotai Junan Securities, E Fund, Huachuang Securities, etc. |
| 27 December 2023 | Shanghai | Other | Institution | Guotai Junan Securities, etc. |
XIII Implementation of the Action Plan for "Dual Enhancement of Development Quality andInvestor Returns"Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Development Qualityand Investor Returns”.? Yes □ NoIn order to comprehensively implement the guiding principles of the Political Bureau meeting on "activatingthe capital market and boosting investor confidence" and the State Council Executive Meeting on "vigorouslyenhancing the quality and investment value of listed companies, adopting more effective measures, focusing onstabilizing the market and confidence", Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company" or"Wuliangye") disclosed the Action Plan for "Dual Enhancement of Development Quality and Investor Returns"(Announcement No.: 2024/No. 002) on 7 March 2024. The implementation of the action plan is as follows.(I) Strengthen development and strive to accelerate the journey to become a world-leading enterpriseFirstly, the Company has maintained steady and robust growth in operating performance. Maintainingthe strategic focus of "concentrating on the liquor industry and strengthening the principal operations", theCompany adhered to the working principles of "seeking progress in stability, maintaining stability with progress,improving quality and efficiency, as well as making more contributions", solidly carried out its work, and takesscientific actions, achieving new heights in corporate development. In 2023, the Company achieved operatingrevenue of RMB83.272 billion, an increase of 12.58% year on year; and the net profit attributable to itsshareholders was RMB30.211 billion, an increase of 13.19% year on year. In the first quarter of 2024, theCompany achieved operating revenue of RMB34.833 billion, a year-on-year increase of 11.86%; the net profitattributable to its shareholders was RMB14.045 billion, a year-on-year increase of 11.98%, maintaining steadygrowth in operating performance.Secondly, the driving force for innovative development continued to strengthen. In 2023, the Company
invested RMB322 million in research and development, a year-on-year increase of 36.50%, further consolidatingthe foundation for innovative development of Wuliangye. Wuliangye has established seven national-levelinnovation platforms, including the National Baijiu Product Quality Supervision and Inspection Centre, theNational-level Enterprise Technology Centre, the National-level Industrial Design Centre, and the Post-doctoralResearch Station, among others, with over 8% of research and development personnel holding doctoral degrees.The Company continued to promote the construction of national-level innovation platforms, vigorously conductsbasic theoretical research with core microorganisms in Baijiu brewing, health factors, flavour substances, etc.,promoted supply-side structural reforms with liquor body innovation and production technique innovation as thecore, and continuously achieved new breakthroughs and results in enterprise transformation and innovativedevelopment.
Thirdly, the brand influence continued to rise. On 17 January 2024, Brand Finance, an internationallyrenowned brand valuation agency, released the Brand Finance 2024 Global Brand Value 500 list. Wuliangye'sBrand Strength Index (BSI) scored 90.7 points, ranking first among Baijiu brands, and obtained the highest ratingof AAA for global Baijiu brands, with its brand value and global influence continuing to rise.
(II) Strengthen compliance and continuously improve corporate governance
Firstly, the information disclosure continued to be strengthened. The Company continued to strengthenits learning of the Rules Governing the Listing of Shares and Guidelines on the Application of Self-RegulationRules for Listed Companies and other regulations on the supervision of listed companies, and to strengtheninformation disclosure management. It has won the highest level (A) assessment of information disclosure fromthe Shenzhen Stock Exchange for nine consecutive years. Since 2024, the Company has compiled and disclosed36 regular reports and interim reports, timely conveying relevant information on its production and operation.
Secondly, the governance system continued to be optimised. The Company continued to improve the levelof corporate governance and promote the stable operation of the governance structure. The Company currently hasnine directors, including four internal directors and five outside directors. Major agenda items are subject to pre-review and pre-study by the Party Committee, continuously exerting the effectiveness of scientific decision-making by the Board of Directors. since 2024, the Company has convened four Board meetings, deliberating on17 proposals, including matters related to profit distribution, actively implementing the functions of the Board ofDirectors, and ensuring efficient and orderly management of the Company.
Thirdly, the supervision mechanism continued to be sound. Since 2024, the Company has continued topromote the revision of the Articles of Association; independent directors attended one special meeting ofindependent directors and four Meetings of the Board of Directors, while continuing to pay attention to theCompany's information disclosure work, objectively evaluating the timeliness and accuracy of informationdisclosure, and independently and prudently expressing opinions to ensure the normative, compliant, and effectiveoperation of the Board of Directors; the Company's Supervisory Committee independently exercised its powers inaccordance with the law, comprehensively supervised the Company's lawful operations, financial status, relatedtransactions, external guarantees, and actively safeguarded the legitimate rights and interests of all shareholders,the Company, and employees.
(III) Strengthen returns and continuously increase shareholder returns
The Company continued to uphold the core value of "creating returns for investors". While focusing on itsown development and improving performance, it actively shared the yield of development with all shareholders.On 24 April 2024, the 4th Meeting of the 6th Board of Directors of the Company approved the profit distributionplan for 2023: based on 3,881,608,005 shares, a cash dividend of RMB46.70 (tax inclusive) will be distributed toall shareholders for every 10 shares; the cash dividend payout ratio is 60%, with a total cash dividend ofRMB18.127 billion, both the payout ratio and scale of dividends reached a new high since listing.
(IV) Strengthen confidence and major shareholders implement additional purchases of the Company'sshares
The Company's major shareholder, Sichuan Yibin Wuliangye Group Co., Ltd. (hereinafter referred to as"Wuliangye Group"), initiated the implementation of additional purchases of the Company's shares on 14December 2023, and has accumulated a total purchase amount of RMB180 million to date. Subsequently,Wuliangye Group will continue to implement the additional purchase plan.
(V) Strengthen communication and continuously optimise investor relations management
The Company always adhered to the principles of "compliance, equality, proactivity, and honesty andtrustworthiness", continuously optimised investor relations management, and built various communicationplatforms. The Company is scheduled to hold the "2023 Annual and 2024 First Quarter Performance Briefing" on23 May 2024, publicly soliciting questions from investors in advance, actively listening to investors' opinions and
suggestions, improving the effectiveness and pertinence of questions, and actively ensuring the equal participationof minority shareholders.
The Company will continue to implement relevant measures of the Action Plan for "Dual Enhancement ofDevelopment Quality and Investor Returns”, strive to realise the concept of "investors first" through goodperformance, standardised corporate governance, and active investment returns, effectively fulfil theresponsibilities and obligations of a listed company, enhance investor confidence, and achieve sustained high-quality development of the Company.
Part IV Corporate Governance
I Corporate Governance OverviewIn 2023, focusing closely on the development goal of building a world-class enterprise with moderngovernance, the Company continued to improve its corporate governance structure, optimize its mechanisms, aswell as accelerate the establishment of a well-organized, well-coordinated and well-balanced corporategovernance mechanism.Firstly, the Company continuously optimised the governance system. During the Reporting Period, theCompany's governance system was further improved. The Company currently has nine directors, including fourinternal directors and five outside directors. Major agenda items are subject to pre-review and pre-study by theParty Committee, continuously exerting the effectiveness of scientific decision-making by the Board of Directors;one General Meeting of Shareholders was held throughout the year, deliberating on nine agenda items;12Meetings of the Board of Directors were held, deliberating on 46 agenda items, including matters related to profitdistribution and major engineering projects, actively implementing the functions of the Board of Directors, andensuring efficient and orderly management of the Company.Secondly, the Company continuously improved the supervision mechanism. During the Reporting Period,the Company completed the revision of regulations of "major issues, major appointments and dismissals, majorproject investment, and use of large amount of funds", the Performance Appraisal and Remuneration ManagementMethods for Deputy Senior Management, and continued to promote the revision of the Articles of Association andRules of Procedure for the Board of Directors; independent directors attended 12 Meetings of the Board ofDirectors throughout the year and attended one General Meeting of Shareholders, while continuing to payattention to the Company's information disclosure work, objectively evaluating the timeliness and accuracy ofinformation disclosure, and independently and prudently expressing opinions to ensure the normative, compliant,and effective operation of the Board of Directors.Thirdly, the Company continuously improved internal control effectiveness. Based on the continuousimprovement of modern corporate regulations, the Company continuously improved the internal control systemand risk management mechanism, integrated and exerted the practical effectiveness of risk prevention and controlof multiple management institutions such as audit, finance, discipline inspection, and the Supervisory Committee,and increased training and assessment efforts for the decision-making ability and risk prevention awareness ofsenior management, ensuring the rational and smooth operation of the Company's governance mechanism.Indicate whether there is any material incompliance with the applicable laws, regulations, or rules issued bythe CSRC governing the governance of listed companies.
□ Yes ? No
No such cases.II Independence of the Company from its Controlling Shareholder and Actual Controller inAssets, Personnel, Finance, Organizational Structure, Business, etc.
The Company is independent of its controlling shareholder in business, personnel, assets, organizationalstructure, finance, etc. It has independent and complete systems of production and operation and is able to operateon its own.
In terms of business, the Company has independent production and operation systems, production supportingsystems and related ancillary facilities. It is able to make decisions on its own with respect to operating activities.
In terms of personnel, the Company independently manages labor, human resources and salaries.
In terms of assets, the Company has ownership and control of its assets, and the controlling shareholder doesnot occupy its assets or funds.
In terms of organizational structure, the principal management organs and systems for production andoperation of the Company are independent.
In terms of finance, the Company has an independent financial organ, independent accounting system andfinancial management mechanism, and has its own bank account.III Horizontal Competition
□ Applicable ? Not applicable
IV Annual and Extraordinary General Meetings of Shareholders Convened during theReporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Resolutions |
| The 2022 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 72.79% | 26 May 2023 | 27 May 2023 | See the Announcement on Resolutions of the 2022 Annual General Meeting of Shareholders (2023/No. 017) |
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholderswith Resumed Voting Rights
□ Applicable ? Not applicable
V Directors, Supervisors and Senior Management
1. General Information
| Name | Gender | Age | Office title | Employment status | Start of office term | End of office term | Opening shareholding (share) | Increase in the current period (share) | Decrease in the current period (share) | Other increase/decrease (share) | Closing shareholding (share) | Reason for share changes |
| Zeng Congqin | Male | 55 | Secretary of the CPC Committee | Incumbent | 28 January 2022 | Currently ongoing | ||||||
| Chairman of the Board | 27 May 2022 | |||||||||||
| Jiang Wenge | Male | 57 | Deputy Secretary of the CPC Committee | Incumbent | 28 January 2022 | Currently ongoing | ||||||
| Vice Chairman of the Board and General Manager | 27 May 2022 | |||||||||||
| Zhang Yu | Male | 49 | Member of the CPC Committee | Incumbent | 30 December 2020 | Currently ongoing | ||||||
| Vice Chairman of the Board | 27 May 2022 | |||||||||||
| Xu Bo | Female | 56 | Director | Incumbent | 27 May 2022 | Currently ongoing | ||||||
| Xiao Hao | Male | 47 | Deputy Secretary of the CPC Committee | Incumbent | 15 December 2021 | Currently ongoing | ||||||
| Director | 27 May 2022 | |||||||||||
| Xie | Male | 64 | Independent | Incumbent | 27 May 2022 | Currently |
| Zhihua | Director | ongoing | ||||||||||
| Wu Yue | Male | 57 | Independent Director | Incumbent | 27 May 2022 | Currently ongoing | ||||||
| Hou Shuiping | Male | 68 | Independent Director | Incumbent | 27 May 2022 | Currently ongoing | ||||||
| Luo Huawei | Male | 54 | Independent Director | Incumbent | 27 May 2022 | Currently ongoing | ||||||
| Liu Ming | Male | 53 | Member of the CPC Committee | Incumbent | 22 February 2022 | Currently ongoing | 6,065 | 6,065 | ||||
| Chairman of the Supervisory Committee | 27 May 2022 | |||||||||||
| Zhang Qing | Male | 58 | Employee Supervisor | Incumbent | 27 May 2022 | Currently ongoing | 12,730 | 12,730 | ||||
| Wu Guoping | Male | 54 | Employee Supervisor | Incumbent | 27 May 2022 | Currently ongoing | 40,988 | 40,988 | ||||
| Yang Yunxia | Female | 52 | Member of the CPC Committee | Incumbent | 23 May 2022 | Currently ongoing | 15,894 | 15,894 | ||||
| Chief Engineer | 27 May 2022 | |||||||||||
| Jiang Jia | Male | 49 | Member of the CPC Committee | Incumbent | 22 February 2022 | Currently ongoing | 11,841 | 11,841 | ||||
| Deputy General Manager | 1 February 2024 | |||||||||||
| Xie Zhiping | Male | 55 | Acting CFO | Incumbent | 2 February 2024 | Currently ongoing | ||||||
| Yue Song | Male | 51 | Deputy General Manager | Incumbent | 27 May 2022 | Currently ongoing | 9,819 | 9,819 | ||||
| Li Jian | Male | 49 | Deputy General Manager | Incumbent | 27 May 2022 | Currently ongoing | ||||||
| Zhang Xin | Male | 54 | Member of the CPC Committee | Incumbent | 25 September 2023 | Currently ongoing | ||||||
| Deputy General Manager | ||||||||||||
| Board Secretary | 19 April 2024 | Currently ongoing | ||||||||||
| Jiang Lin | Female | 44 | Member of the CPC Committee | Former | 22 February 2022 | 13 September 2023 | ||||||
| Director and Deputy General Manager | 27 May 2022 | 25 September 2023 | ||||||||||
| Board Secretary | 24 August 2022 | 19 April 2024 | ||||||||||
| Zhang Xin | Male | 54 | Supervisor | Former | 27 May 2022 | 2 June 2023 | ||||||
| Jiang Jia | Male | 49 | Chief Economist | Former | 27 May 2022 | 2 February 2024 | ||||||
| Xie Zhiping | Male | 55 | Member of the CPC Committee | Former | 26 October 2022 | 2 February 2024 | ||||||
| CFO | 4 November 2022 | |||||||||||
| Liang Li | Female | 53 | Director | Former | 27 May 2022 | 2 February 2024 | ||||||
| Liu Yang | Male | 45 | Deputy General Manager | Former | 27 May 2022 | 2 February 2024 | ||||||
| Total | -- | -- | -- | -- | -- | -- | 97,337 | 0 | 0 | 0 | 97,337 | -- |
Indicate whether any director, supervisor or senior management resigned before the expiry of their office
terms during the Reporting Period.
□ Yes ? No
Changes of directors, supervisors and senior management:
? Applicable □ Not applicable
| Name | Office title | Type of change | Date | Reason |
| Zhang Xin | Deputy General Manager | Appointed | 25 September 2023 | Appointed by the Board of Directors |
| Board Secretary | Appointed | 19 April 2024 | ||
| Supervisor | Former | 2 June 2023 | Having resigned for a job change | |
| Jiang Lin | Director and Deputy General Manager | Former | 25 September 2023 | Having resigned for a job change |
| Board Secretary | Former | 19 April 2024 | ||
| Liang Li | Director | Former | 2 February 2024 | Having resigned for a job change |
| Liu Yang | Deputy General Manager | Former | 2 February 2024 | Having resigned for a job change |
| Jiang Jia | Chief Economist | Former | 2 February 2024 | Having resigned for a job change |
| Xie Zhiping | CFO | Former | 2 February 2024 | Dismissed by the Board of Directors |
2. Biographical Information
Professional backgrounds, main work experience and current positions in the Company of the incumbentdirectors, supervisors and senior management:
(1) Mr. Zeng Congqin, a doctoral degree holder and professorate senior economist. He began to work in July1988 and successively served in Changning County of Yibin, municipal authorities, Cuiping District, and LingangEconomic Development Zone. He once served as a member of the Standing Committee of the Changning CountyCPC Committee, Director of the Publicity Department, and Executive Deputy County Chief of Changning County,Director of the Investment Service Bureau of Yibin Lingang Economic Development Zone, Secretary of the PartyLeadership Group and Director of the Yibin Municipal Development and Reform Commission and Director of theMunicipal Price Bureau, Director of the Municipal Bureau of Energy, Secretary of the Cuiping District CPCCommittee, and Secretary of the Party Working Committee of Lingang Economic Development Zone. At present,he serves as the Secretary of the CPC Committee and the Chairman of the Board of the Company, as well as theSecretary of the CPC Committee and the Chairman of the Board of Wuliangye Group.
(2) Mr. Jiang Wenge, a master's degree holder and professorate senior economist. He began to work inAugust 1985 and successively served in Peng'an County and Shunqing District of Nanchong City, Sichuan, theSichuan Provincial Development and Reform Commission, and the Welfare-to-work Office of Sichuan Province.He once served as the Deputy Head of Shunqing District Government, Deputy Director of the Employment andIncome Distribution Office, Deputy Director of the Division of Rural Economy, and Director of the Division ofRural Economy of Sichuan Provincial Development and Reform Commission, and the Deputy Director andPrimary Investigator of the Welfare-to-work Office of Sichuan Province. He now serves as the Deputy Secretaryof the CPC Committee, Vice Chairman of the Board, and General Manager of the Company.
(3) Mr. Zhang Yu, a doctoral degree holder. He began to work in July 1997 and successively served in theChengdu Education Bureau, Qingyang District Government and Xindu District Committee. He once served asSecretary of CPC Committee, Director, and Party Group Secretary of the District Education Bureau, a member ofthe Party Group of the District Government, Deputy District Chief, a member of the Standing Committee ofDistrict Committee and Director of the Organization Department of the District Government, Deputy Secretary ofthe CPC Committee of Wuliangye Group from April to December 2020, and Deputy Secretary of the CPCCommittee of the Company from December 2020 to December 2021. Currently, he is a member of the CPCCommittee and Vice Chairman of the Board of the Company.
(4) Ms. Xu Bo, a bachelor's degree holder. She began to work in December 1983 and successively served inthe Electronic Education Company of the Yibin Education Bureau and the Yibin City Bureau of Audit. She onceserved as the Deputy Head, Head, and Deputy Director of the Yibin City Bureau of Audit. She now serves as aDirector of the Company, as well as a Director and the General Manager of Yibin Development Group.
(5) Mr. Xiao Hao, a master's degree holder. He began to work in July 1998. He successively served in theOrganization Department of the CPC Committee of Yibin County, the Organization Department of the CPCCommittee of Yibin City, and the Office of the CPC Committee of Yibin City. He successively served as theDeputy Director of Municipal CPC Committee Office, Director of the Standing Committee Office of theMunicipal CPC Committee, and Deputy Secretary-General of the Municipal CPC Committee. He served as theDeputy Secretary of the CPC Committee of Wuliangye Group from December 2020 to December 2021. He hasbeen the Deputy Secretary of the CPC Committee of the Company since December 2021, and the DeputySecretary of the CPC Committee and a Director of Wuliangye Group since March 2022. He is now a DeputySecretary of the CPC Committee and a Director of the Company.
(6) Mr. Xie Zhihua, a doctoral degree holder, professor, certified public accountant, and Expert of the SpecialGovernment Allowances of the State Council. He began to work in June 1976 and successively served in XiangxiAutonomous Prefecture Commercial School, Beijing Business School, and Beijing Technology and BusinessUniversity. He once served as the Deputy Director, Director, Director of the Academic Affairs Department, andVice President of the Accounting Faculty of Beijing Business School, and a member of the CPC Committee andVice President of Beijing Technology and Business University. He now serves as an Independent Director of theCompany, a Professor of Beijing Technology and Business University, and an Independent Director of China Non-ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., in addition to being an Outside Directorof Sinochem Energy Co., Ltd., Yunnan Hongta Bank Co., Ltd., and Bank of Jiaxing Co., Ltd.
(7) Mr. Wu Yue, a doctoral degree holder and professor. He now serves as the Professor at the School of Lawof Southwestern University of Finance and Economics, and concurrently serves as the Vice President of theBusiness Law Research Association of the Sichuan Law Society, Executive Director of China Business LawResearch Association, Arbitrator of China International Economic and Trade Arbitration Commission, andArbitrator of Chengdu Arbitration Commission. He is also an Independent Director of the Company, ChengduCorpro Technology Co., Ltd., and Sichuan MIngxing Electric Power Co., Ltd., as well as an Outside Director ofSichuan Dandan Pixian Bean Paste Group Co., Ltd.
(8) Mr. Hou Shuiping, a doctorate degree holder, researcher and an expert entitled to special allowances fromthe State Council. He took the posts of Dean of the Sichuan Academy of Social Sciences and Deputy Director ofthe Decision-making Advisory Committee (Provincial Science and Technology Advisory Group) of the CPCSichuan Provincial Committee and the People's Government of Sichuan Province. At present, he serves as aresearcher and post-doctoral co-supervisor at the Sichuan Academy of Social Sciences. He is also an IndependentDirector of the Company, Sichuan Yahua Industrial Group Co., Ltd., and Sichuan Shudao Equipment &Technology Co., Ltd.
(9) Mr. Luo Huawei, a doctorate degree holder, professor, certified public accountant, and legal practitioner.At present, he serves as a doctoral supervisor at Sichuan Agricultural University, and a Director of the AccountingSociety of Sichuan. He is also an Independent Director of the Company, an Outside Director of Ya'anDevelopment Investment Co., Ltd., an Independent Director of Sichuan Yahua Industrial Group Co., Ltd., and anIndependent Director of D&O Home Collection Group Co., Ltd.
(10) Mr. Liu Ming, a bachelor's degree holder, senior engineer of liquor brewing, and China Liquor BrewingMaster, national-level specially-invited Baijiu appraisal committee member. He began to worked in Wuliangyedistillery in December 1986 and once served as the Deputy Director and Director of the workshop, andconcurrently served as the Deputy Secretary of the Party Branch, Secretary of the Party Branch, President of theBranch Labor Union, Secretary of the Party General Branch, General Manager and Chairman of YibinChangjiangyuan Liquor Co., Ltd., Assistant to the General Manager and Director of the Production ManagementDepartment of the Company. He served as the Chief Engineer of the Company from July 2021 to March 2022. Hehas been a member of the CPC Committee of the Company since February 2022. Currently, he is a member of theCPC Committee and the Chairman of the Supervisory Committee of the Company.
(11) Mr. Wu Guoping, a bachelor's degree holder, auditor and senior sourcer. He began to work in August1989 and once served in Audit Bureau and Finance Bureau of Cuiping District, Yibin City, Yibin City Bureau ofAudit. He was transferred to the Company and served as the Deputy Director of the Audit Affairs Department inMay 2015, Employee Supervisor of the Company in June 2015, and Deputy Director of the Audit Department inJuly 2015. He now serves as an Employee Supervisor and the Deputy Director of the Audit and SupervisionDepartment of the Company, as well as a Supervisor of Wuliangye Group.
(12) Mr. Zhang Qing, a college degree holder and senior brewing engineer. He began to work at theWuliangye distillery in January 1983. He took the posts of Leader and Technician of the Brewing Team of theWorkshop, Assistant Workshop Director, Assistant Head of the Production Management Department, Head of theControl Room, President of the Branch Labour Union, Workshop Director, President of the Labour Union,Supervisor, General Manager, and Director of Yibin Changjiangyuan Liquor Co., Ltd., and Deputy Head of the
Production Management Department of the Company. At present, he serves as Employee Supervisor and Head ofthe Production Management Department of the Company.
(13) Ms. Yang Yunxia, a bachelor's degree holder and Senior Political Mentor. She began to work at theWuliangye distillery in July 1991. She once held offices at Workshop 508, Workshop 513, the Audit Supervisionand Legal Affairs Department, and the Organization Department of the CPC Committee. She was DeputySecretary to the CPC Branch of Workshop 506 in August 2003 and Secretary of the CPC Branch of Workshop 506in December 2003. Ms. Yang Yunxia was an Employee Representative Supervisor of the Company between June2014 and June 2020 and Head of the Work Department of the CPC Committee of the Company between May andJuly 2015. She started serving as the Head of the Mass Work Department of the Company in July 2015(concurrently, she was Deputy Secretary to the CPC Xingwen Committee between March 2016 and June 2018).She took the posts of Member of the CPC Committee, President of the Labour Union, and Head of the Mass WorkDepartment of the Company in June 2018, and of Member of the CPC Committee, Chairman of the SupervisoryCommittee, and Head of the Mass Work Department of the Group in December 2020. At present, she is a Memberof the CPC Committee, the Chief Engineer and Food Safety Director of the Company.
(14) Mr. Jiang Jia, a bachelor's degree holder and senior economist. He began to work in Wuliangye distilleryin July 1997 and once served as the Deputy General of the Sales Department, Deputy General of the Brand AffairsDepartment of Brand Distributors, Deputy Director and Director of the Strategic Development Department, andChairman of Wuliangye Health Wine Company. He has served as a member of the CPC Committee and ChiefEconomist of Wuliangye Group since April 2020. He used to be the Chief Economist of the Company. At present,he is a member of the CPC Committee and Deputy General Manger of the Company.
(15) Mr. Xie Zhiping, a master's degree holder. He began to work in August 1991. He took posts at the YibinMunicipal Finance Bureau and Yibin Municipal Bureau of Statistics. He was a Member of the CPC Group andDeputy Director of Yibin Municipal Finance Bureau, Secretary to the CPC Group and Director of the YibinMunicipal Bureau of Statistics, Secretary to the CPC Group and Director of Yibin Municipal Finance Bureau, aMember of the CPC Committee and Chief Financial Officer of Wuliangye Yibin Co., Ltd. He became a Memberof the CPC Committee and Chief Financial Officer of Wuliangye Group in February 2022. Formerly the ChiefFinancial Officer of the Company, he now serves as the Acting Chief Financial Officer of the Company.
(16) Mr. Yue Song, a bachelor's degree holder and senior brewing technician. He started to work in theWuliangye Distillery in December 1995. He once served as the Deputy Director of the Office, Deputy Director ofthe Office of the Board of Directors, Secretary of the CPC Branch, as well as Secretary of the CPC Branch andPresident of the Branch Labor Union of Workshop 505 and Workshop 523 of the Company, General Manager andPresident of the Branch Labor Union of Sichuan Wuliangye Culture Tourism Co., Ltd., Secretary of the PartyGeneral Branch and Chairman of Yibin Changjiangyuan Liquor Co., Ltd., and General Engineer of WuliangyeGroup. He is now a Deputy General Manager and the Safety Director of the Company.
(17) Mr. Li Jian, a doctoral degree holder. He began to work in October 1995 and once served in the Housingand Urban-Rural Development Bureau of Changning County, Education and Sports Bureau of Yibin City, andShunan Culture & Tourism Group. He once served as a member of the CPC Committee and Deputy GeneralManager of Shunan Culture & Tourism Group. He is now a Deputy General Manager and the EnvironmentalProtection Director of the Company.
(18) Mr. Zhang Xin, a master's degree holder. With his career starting in August 1991, he used to serve in theYibin Bureau of Finance, and the Yibin State-owned Assets Supervision and Administration Commission. He oncewas a Head of Section, Deputy Head of the Corporate Section, Full-time Deputy Secretary of the CPC Committeeand Head of the Asset Management Section of the Yibin Bureau of Finance. Also, he used to be a member of theCPC Committee and Deputy General Manager of Yibin Development Group, as well as the Secretary of the CPCBranch and Chairman of the Board of Sichuan Sanjiang Huihai Finance Leasing Co., Ltd. Currently, he is amember of the CPC Committee, a Deputy General Manager, the Board Secretary, and a director-designate of theCompany.
Offices held concurrently in shareholding entities:
? Applicable □ Not applicable
| Name | Shareholding entity | Office held in the entity | Start of office term | End of office term | Paid by the entity or not |
| Zeng Congqin | Wuliangye Group | Secretary of the CPC Committee and Chairman of the Board | No | ||
| Xu Bo | Yibin Development | Director and General Manager | Yes |
| Group | |||||
| Xiao Hao | Wuliangye Group | Deputy Secretary of the CPC Committee and Director | No |
Offices held concurrently in other entities:
? Applicable □ Not applicable
| Name | Other entity | Office held in the entity | Start of office term | End of office term | Paid by the entity or not |
| Xie Zhihua | Beijing Technology and Business University | Professor | Yes | ||
| China Non-ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. | Independent Director | Yes | |||
| Sinochem Energy Co., Ltd., Yunnan Hongta Bank Co., Ltd., and Bank of Jiaxing Co., Ltd. | Outside Director | Yes | |||
| Wu Yue | Southwestern University of Finance and Economics | Professor | Yes | ||
| Chengdu Corpro Technology Co., Ltd., and Sichuan MIngxing Electric Power Co., Ltd. | Independent Director | Yes | |||
| Sichuan Dandan Pixian Bean Paste Group Co., Ltd. | Outside Director | Yes | |||
| Hou Shuiping | Sichuan Academy of Social Sciences | Research Fellow and Postdoctoral Co-supervisor | Yes | ||
| Sichuan Yahua Industrial Group Co., Ltd., and Sichuan Shudao Equipment & Technology Co., Ltd. | Independent Director | Yes | |||
| Luo Huawei | Sichuan Agricultural University | Professor | Yes | ||
| Ya'an Development Investment Co., Ltd. | Outside Director | Yes | |||
| Sichuan Yahua Industrial Group Co., Ltd., and D&O Home Collection Group Co., Ltd. | Independent Director | Yes |
Punishments imposed in the recent three years by the securities regulator on the incumbent directors,supervisors and senior management as well as those who resigned in the Reporting Period:
□ Applicable ? Not applicable
3. Remunerations of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remunerations for directors,supervisors and senior management:
(1) Decision-making procedure
In accordance with the relevant rules of the higher organization and the Company, the remuneration plan forthe senior management of the Company is formulated, then submitted to the Remuneration and AppraisalCommittee under the Board of Directors for review, and then finalized by the Board of Directors.
(2) Basis for the determination of remunerations
In accordance with the relevant rules, the remunerations for directors, supervisors and senior management aredetermined upon appraisal.
(3) Actual payments
Part of the base pay is given on a monthly basis, and part of the performance-related pay is given within theyear.
Remunerations of directors, supervisors and senior management during the Reporting Period
Unit: RMB'0,000
| Name | Gender | Age | Office title | Employment | Total before-tax remunerations | Paid by any related party or not |
| status | from the Company | |||||
| Zeng Congqin | Male | 55 | Chairman of the Board | Incumbent | 61.83 | No |
| Jiang Wenge | Male | 57 | Vice Chairman of the Board and General Manager | Incumbent | 61.83 | No |
| Zhang Yu | Male | 49 | Vice Chairman of the Board | Incumbent | 55.52 | No |
| Xu Bo | Female | 56 | Director | Incumbent | 0 | Yes |
| Xiao Hao | Male | 47 | Director | Incumbent | 55.52 | No |
| Xie Zhihua | Male | 64 | Independent Director | Incumbent | 10 | No |
| Wu Yue | Male | 57 | Independent Director | Incumbent | 10 | No |
| Hou Shuiping | Male | 68 | Independent Director | Incumbent | 10 | No |
| Luo Huawei | Male | 54 | Independent Director | Incumbent | 10 | No |
| Liu Ming | Male | 53 | Chairman of the Supervisory Committee | Incumbent | 75.52 | No |
| Wu Guoping | Male | 54 | Employee Supervisor | Incumbent | 68.66 | No |
| Zhang Qing | Male | 58 | Employee Supervisor | Incumbent | 87.92 | No |
| Yang Yunxia | Female | 52 | Chief Engineer | Incumbent | 55.52 | No |
| Jiang Jia | Male | 49 | Deputy General Manager | Incumbent | 55.52 | No |
| Chief Economist | Former | |||||
| Xie Zhiping | Male | 55 | Acting CFO | Incumbent | 55.52 | No |
| CFO | Former | |||||
| Yue Song | Male | 51 | Deputy General Manager | Incumbent | 55.64 | No |
| Li Jian | Male | 49 | Deputy General Manager | Incumbent | 55.52 | No |
| Zhang Xin | Male | 54 | Deputy General Manager and Board Secretary | Incumbent | 13.97 | No |
| Supervisor | Former | 0 | Yes | |||
| Jiang Lin | Female | 44 | Director, Deputy General Manager and Board Secretary | Former | 52.56 | No |
| Liang Li | Female | 53 | Director | Former | 0 | Yes |
| Liu Yang | Male | 45 | Deputy General Manager | Former | 55.52 | No |
| Total | -- | -- | -- | -- | 906.57 | -- |
Notes: 1. Remunerations of directors, supervisors and senior management are accounted for and disclosed onan accrual basis.
2. Mr. Liu Ming was named China Liquor Brewing Master and received a special financial subsidy ofRMB200,000 from the government of Yibin City to support the development of the baijiu talent team.
3. Mr. Zhang Xin was appointed as a member of the CPC Committee and Deputy General Manager of theCompany in September 2023 and has been receiving remuneration from the Company since October.VI Activities of Directors during the Reporting Period
1. Board Meetings Convened during the Reporting Period
| Meeting | Date of the meeting | Disclosure date | Resolutions |
| The First Meeting of the Sixth Board of Directors in 2023 | 18 January 2023 | N/A | The Proposal on the Implementation of the Tenure System and Contractual Management of the Company's Managerial Members, and the Proposal on the Title of Exclusive Partner of Interactive Prizes of the CCTV 2023 Spring Festival Gala were |
| approved. | |||
| The Second Meeting of the Sixth Board of Directors in 2023 | 22 February 2023 | N/A | The Proposal on the Revisions of the Systems for Major Decisions, Appointment and Removal of Important Personnel, Arrangement of Major Projects and Operation of Large Amounts of Funds was approved. |
| The Third Meeting of the Sixth Board of Directors in 2023 | 3-7 March 2023 | 9 March 2023 | See Announcement 2023/No. 001 |
| The Fourth Meeting of the Sixth Board of Directors in 2023 | 27 April 2023 | 29 April 2023 | See Announcement 2023/No. 004 |
| The Fifth Meeting of the Sixth Board of Directors in 2023 | 15-19 May 2023 | N/A | The Proposal on the Donation Agreement between the Company and the Education Development Foundation of South China University of Technology in Guangdong Province was approved. |
| The Sixth Meeting of the Sixth Board of Directors in 2023 | 25-29 May 2023 | 31 May 2023 | See Announcement 2023/No. 018 |
| The Seventh Meeting of the Sixth Board of Directors in 2023 | 24 August 2023 | 26 August 2023 | See Announcement 2023/No. 022 |
| The Eighth Meeting of the Sixth Board of Directors in 2023 | 25 September 2023 | 26 September 2023 | See Announcement 2023/No. 025 |
| The Ninth Meeting of the Sixth Board of Directors in 2023 | 26 October 2023 | N/A | See Announcement 2023/No. 026 |
| The 10th Meeting of the Sixth Board of Directors in 2023 | 4-8 December 2023 | 9 December 2023 | See Announcement 2023/No. 029 |
| The 11th Meeting of the Sixth Board of Directors in 2023 | 19-20 December 2023 | 20 December 2023 | See Announcement 2023/No. 031 |
| The 12th Meeting of the Sixth Board of Directors in 2023 | 29 December 2023 | 30 December 2023 | See Announcement 2023/No. 032 |
2. Attendance of Directors at Board Meetings and General Meetings of Shareholders
| Attendance of directors at board meetings and general meetings of shareholders | |||||||
| Director | Total number of board meetings the director was supposed to attend | Board meetings attended on site | Board meetings attended by way of telecommunication or circulation | Board meetings attended through a proxy | Board meetings the director failed to attend | The director failed to attend two consecutive board meetings or not | General meetings of shareholders attended |
| Zeng Congqin | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Jiang Wenge | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Zhang Yu | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Liang Li | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Xu Bo | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Xiao Hao | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Jiang Lin | 8 | 2 | 6 | 0 | 0 | No | 1 |
| Xie Zhihua | 12 | 0 | 12 | 0 | 0 | No | 1 |
| Wu Yue | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Hou Shuiping | 12 | 1 | 11 | 0 | 0 | No | 0 |
| Luo Huawei | 12 | 1 | 11 | 0 | 0 | No | 1 |
Explanation of why any director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate whether any director raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
4. Other Information about the Activities of Directors
Indicate whether any recommendation from directors was adopted by the Company.? Yes □ NoExplanation on adoption/rejection of recommendations of directors:
During the Reporting Period, in strict compliance with the applicable laws, regulations and the Articles ofAssociation, the directors of the Company performed their duties diligently, providing professional opinion orrecommendations for business decisions of the Company. They have played their part in protecting the legitimaterights and interests of the Company and its shareholders.VII Activities of Special Committees under the Board of Directors during the ReportingPeriod
| Committee | Members | Number of meetings convened | Date of meeting | Contents | Important opinion and suggestions | Other work done | Particulars about objections (if any) |
| The Strategy Committee | Zeng Congqin Jiang Wenge Zhang Yu Xiao Hao Xie Zhihua | 2 | 20230628 | Studying the spirit of the Third Plenary Session of the 12th CPC Sichuan Provincial Committee, and the Action Plan for Deepening and Upgrading the Reform of State-owned Enterprises (2023-2025) | None | None | None |
| 20231220 | The committee mainly studied the Opinion on Supporting the High-Quality Development of Wuliangye Group issued by the CPC Yibin Municipal Committee and the Yibin Municipal People's Government, and received briefings on the progress of the Company’s high quality and fast growth programme. | None | None | None | |||
| The Comprehensive Budget Management Committee | Zeng Congqin Jiang Wenge Jiang Lin | 2 | 20230421 | Review of the 2023 budgeting plan Result: approved | None | None | None |
| Zeng Congqin Jiang Wenge | 20231023 | Review of the 2023 budget adjustment plan Result: approved | None | None | None | ||
| The Audit Committee | Zeng Congqin Luo Huawei Xu Bo Wu Yue Hou Shuiping | 6 | 20230112 | Urging the audit of the 2022 annual financial statements | None | None | None |
| 20230116 | Reviewing the summary financial statements of 2022, and providing written review opinion | None | None | None | |||
| 20230223 | Reviewing the 2022 annual financial statements, and providing written review opinion | None | None | None | |||
| 20230424 | Reviewing the Proposal on the Re-appointment of the CPA Firm for 2023, the Summary of the Audit on the Financial Statements and Internal Control of 2022, the Independent Auditor’s Reports on the Financial Statements and Internal Control of 2022, the 2022 Internal Control | None | None | None |
| Assessment Report, the Deposit and Use of Raised Funds in 2022, and the First Quarterly Report 2023 Result: approved | |||||||
| 20230822 | Reviewing the Interim Report 2023 Result: approved | None | None | None | |||
| 20231021 | Reviewing the Third Quarterly Report 2023 Result: approved | None | None | None | |||
| The Nomination Committee | Zeng Congqin Jiang Wenge Hou Shuiping Luo Huawei Wu Yue | 1 | 20230922 | Reviewing the Proposal on Adjustments to Directors of the Sixth Board of Directors, and the Proposal on Adjustments to Senior Management Result: approved | None | None | None |
| The Remuneration and Appraisal Committee | Wu Yue Liang Li Luo Huawei | 2 | 20230118 | Reviewing the settlement of senior management’s 2021 annual remunerations, the settlement of tenure incentives for 2019-2021, and the prepayment of part of the 2022 annual performance-based remunerations for some senior management Result: approved | None | None | None |
| 20230712 | Reviewing the proposed 2023 remuneration payouts for senior management Result: approved | None | None | None |
VIII Activities of the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in theReporting Period.
□ Yes ? No
The Supervisory Committee raised no objections with respect to matters of the Company.
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent at the period-end | 16,911 |
| Number of in-service employees of major subsidiaries at the period-end | 8,207 |
| Total number of in-service employees at the period-end | 25,118 |
| Total number of paid employees in the Reporting Period | 25,118 |
| Number of retirees to whom the Company as the parent and its major subsidiaries need to pay retirement pensions | 317 |
| Employees by function | |
| Function | Number of employees |
| Production | 18,725 |
| Sales | 1,181 |
| Technical | 4,030 |
| Financial | 195 |
| Administrative | 987 |
| Total | 25,118 |
| Employees by educational background | |
| Educational background | Number of employees |
| Junior college and beyond | 7,090 |
| High school to junior college (exclusive) | 10,926 |
| Middle school and below | 7,102 |
| Total | 25,118 |
2. Remuneration Policy
The remuneration policies implemented by the Company are the Trial Measures for the Management of TotalWages of Municipal Supervised Enterprises in Yibin City (YGZW [2019] No. 205), and the Company's InterimProvisions on Wage Management and the Trial Measures for the Management of Total Wages of Subsidiaries.
3. Training Plans
In 2023, trainings organized by the Company centered on the strategic objective of high quality development,focused on the building of the talent team and strengthened the foundation of innovation and development. TheCompany carried out hierarchical and classified trainings with rich contents and by flexible means, enhancing theplanning, pertinency and effectiveness of training.
In 2024, based on the new development stage, the Company will vigorously promote internal education. Weplan to conduct 618 sessions of training through on-the-job training, skills training, and study for the promotion ofprofessional titles. It is expected to train more than 85,000 persons, cultivating talents in innovative, compound,and applied fields that meet the development needs of Wuliangye through comprehensive, multi-angle, andadvanced scientific paths.
4. Labor Outsourcing
? Applicable □ Not applicable
During 2023, the Company and its major majority-owned subsidiaries outsourced carriage, loading andunloading, temporary work, etc., for which they paid RMB317 million in total.X Profit Distributions in the Form of Cash and/or Shares
The formulation, implementation and amendments to the profit distribution policy, especially the cashdividend policy, in the Reporting Period:
? Applicable □ Not applicable
According to the 2022 Final Dividend Plan approved at the 2022 Annual General Meeting of Shareholders,the Company declared a cash dividend of RMB37.82 (tax inclusive) per 10 shares to shareholders based on thetotal 3,881,608,005 shares held by them. The independent directors issued their opinion on the final dividend plan,which was approved by the Board of Directors and then at the general meeting of shareholders. This finaldividend plan has been carried out.
| Special statement about the cash dividend policy | |
| In compliance with the Company’s Articles of Association and resolution of general meeting of shareholders | Yes |
| Specific and clear dividend standard and ratio | Yes |
| Complete decision-making procedure and mechanism | Yes |
| Independent directors faithfully performed their duties and played their due role | Yes |
| If the Company has no dividend plan, it should disclose the specific reasons and the next steps it intends to take to enhance investor returns | N/A |
| Non-controlling shareholders are able to fully express their opinion and desire and their legal rights and interests are fully protected | Yes |
| In case of adjusting or altering the cash dividend policy, the conditions and procedures involved are in compliance with applicable regulations and transparent | Yes |
Indicate whether the Company fails to put forward a cash dividend plan despite the facts that the Companyhas made profit in the Reporting Period and the profit of the Company as the parent distributable to shareholdersis positive.
□ Applicable ? Not applicable
Final dividend plan for the Reporting Period:
? Applicable □ Not applicable
| Bonus issue from profit (share/10 shares) | 0 |
| Cash dividend/10 shares (RMB) (tax inclusive) | 46.70 |
| Share base (share) | 3,881,608,005 |
| Cash dividends (RMB) (tax inclusive) | 18,127,109,383.35 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 0.00 |
| Total cash dividends (including those in other forms) (RMB) | 18,127,109,383.35 |
| Distributable profit (RMB) | 58,190,914,311.61 |
| Total cash dividends (including those in other forms) as % of the total profit to be distributed | 100.00% |
| Applicable cash dividend policy | |
| Where the Company is at a mature stage of development and has any substantial spending plan, total cash dividends shall account for at least 40% of the total profit to be distributed. | |
| Final dividend plan in detail | |
| As the 2023 final dividend plan, the Company intends to pay a cash dividend of RMB46.70 (tax inclusive) per 10 shares to shareholders based on the total share capital at the record date for the dividend payout, with the total amount to be distributed amounting to RMB18,127,109,383.35; and no bonus issue will be carried out, either from profit or capital reserves. | |
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees
? Applicable □ Not applicable
1. Equity Incentives
Not applicable.
Equity incentives received by directors and senior management:
□ Applicable ? Not applicable
Appraisal mechanism and incentives for senior management:
See “Part IV, V, 3. Remunerations of Directors, Supervisors and Senior Management” herein.
2. Employee Stock Ownership Plans
? Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
| Scope of employees | Number of employees | Total number of shares held under the plans | Change | As % of the total share capital of the Company | Funding source |
| Employees covered by the plans | 2,428 | 23,696,280 | None | 0.61% | Self-pooled |
Shareholdings of directors, supervisors and senior management under employee stock ownership plansduring the Reporting Period:
In April 2018, the Company carried out an employee stock ownership plan through a private placement, andcertain in-service directors, supervisors and senior management participated in the employee stock ownership plan.By the end of the Reporting Period, non-transaction transfers had been completed.
Change of the asset management agency during the Reporting Period:
□ Applicable ? Not applicable
Equity changes incurred by the disposal of shares by any holder, etc. during the Reporting Period:
□ Applicable ? Not applicable
Exercise of shareholder rights during the Reporting Period:
□ Applicable ? Not applicable
Other information about the employee stock ownership plans during the Reporting Period:
? Applicable □ Not applicableAs approved at the 12th Meeting of the Sixth Board of Directors in 2023, the duration of the employee stockownership plan has been agreed to be extended to 31 December 2026.
Changes to members of the management committees of employee stock ownership plans:
□ Applicable ? Not applicable
The financial impact of employee stock ownership plans on the Company and the relevant accountingtreatments during the Reporting Period:
□ Applicable ? Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable ? Not applicable
Other information: None.
3. Other Incentive Measures for Employees
□ Applicable ? Not applicable
XII Establishment and Implementation of Internal Controls during the Reporting Period
1. Establishment and Implementation of Internal Controls
In 2023, in accordance with the applicable laws and regulations such as the Company Law of the People’sRepublic of China, the Basic Criteria of Enterprise Internal Control jointly promulgated by five ministries andcommissions including the China Securities Regulatory Commission, and the Guidelines on the Compliance ofthe Operation of Listed Companies issued by the Shenzhen Stock Exchange, the Company continuouslyestablished institutional norms for Party building, business operation, risk control and post-event supervision, andcontinued to improve the internal control system. The Company improved the content related to Party building inits Articles of Association. Major operational and management matters are subject to pre-study by the PartyCommittee, and the Board of Directors or the management team makes decisions according to their respectivepowers and prescribed procedures, fully exerting the leadership role of the Party Committee in setting directions,overall planning, and ensuring implementation.
To further strengthen the establishment of the Company's internal control system and ensure thecomprehensiveness and applicability of the Company's internal control manual, each unit of the Company updatedrelevant internal control measures in accordance with national regulations and business development needs. Afterreview, in 2023, the Company updated 23 internal control management regulations, abolished 2, and added 34new ones. As per the relevant requirements, the Company conducts internal control self-assessment with fullparticipation every year. It set up steering groups for internal control self-assessment to guide a total of 57 unitsincluding workshops, functional departments and subsidiaries to carry out internal control self-assessment workand at the same time, set up groups for random inspection of internal control to conduct random inspection on theconstruction and implementation of the Company's internal control system, focused on major business segmentssuch as procurement, sales, and production, evaluated the rationality of the design and the effectiveness of theoperation of the internal control system, so as to continuously optimized internal control. The evaluation resultsshowed that no material and significant deficiency was identified in the internal control system.
In the future, the Company will continue to strengthen internal control training, reinforce the awareness ofcompliance in operation, enhance the risk prevention capability and effectively promote the steadyimplementation of its strategies.
2. Material Defects in Internal Control Identified during the Reporting Period
□ Yes ? No
XIII Management and Control of Subsidiaries during the Reporting Period
None.
XIV Assessment Report or Independent Auditor’s Report on Internal Control
1. Assessment Report on Internal Control
| Date of full disclosure of the internal control assessment report | 29 April 2024 | ||
| Index of full disclosure of the internal control assessment report | http://www.cninfo.com.cn | ||
| Ratio of the total assets of the organizations included in the assessment to the Company's consolidated total assets | 100.00% | ||
| Ratio of the operating revenue of the organizations included in the assessment to the Company's operating revenue in the consolidated financial statements | 100.00% | ||
| Deficiency identification criteria | |||
| Category | Financial report | Non-financial report | |
| Qualitative criteria | 1. Material deficiencies: (1) correction by the Company of the financial statement which have been published. (2) major misstatements found by the external auditor in current financial statements which have not been identified. (3) corrupt practice of directors, supervisors, and officers found by the external auditor. (4) ineffective supervision of internal control by the Company's internal audit department. (5) material deficiencies previously found but were not corrected within a reasonable period or were ineffectively corrected. 2. Significant deficiencies: (1) failure to select and apply accounting policies in accordance with generally accepted accounting policies. (2) failure to effectively control irregular (non-repeating) or complicated transactions. (3) failure to effectively control the anti-corrupt work. (4) ineffective internal control over the financial report at the end of the period. 3. General deficiencies: deficiencies other than material deficiencies and significant deficiencies are recognized as general deficiencies. | 1. Material deficiencies: (1) in violation of national laws, regulations, or normative documents. (2) unscientific enterprise decision-making procedure, such as wrong decision, which causes failure of major transactions. (3) loss of management personnel or technician of important posts. (4) lack of institutional control or systematic failure of the institution for important businesses, and existing but ineffective operation of institutional guidance for internal control of important economic business. (5) failure to correct material deficiencies within a reasonable period. 2. Significant deficiencies: (1) property loss not reaching or exceeding the level of materiality but should be noticed by the Board of Directors and the management in nature. (2) individual events criticized by government departments, causing moderate negative influence on reputation of the Company. (3) violation of internal rules and regulations of the enterprise and causing losses. (4) deficiency in important business mechanism or system. 3. General deficiencies: deficiencies in internal control other than material deficiencies and significant deficiencies are general deficiencies. | |
| Quantitative criteria | 1. Material deficiencies: misstatement amount >3% of total operating revenue; misstatement amount >10% of net profit; misstatement amount >3% of total assets. 2. Significant deficiencies: 1% of total operating revenue < misstatement amount ≤3% of total operating revenue; 5% of net profit < misstatement amount ≤10% of net profit; 1% of total assets < misstatement amount ≤3% of total assets. 3. General deficiencies: misstatement amount ≤1% of total operating revenue; misstatement amount ≤5% of net profit; misstatement amount ≤1% of total assets. | 1. Material deficiencies: proportion of loss to net profit ≥5%. 2. Significant deficiencies: 3%≤ proportion of loss to net profit <5%. 3. General deficiencies: proportion of loss to net profit <3%. | |
| Number of material deficiencies in financial reports | 0 | ||
| Number of material deficiencies in non-financial reports | 0 | ||
| Number of significant deficiencies in financial reports | 0 | ||
| Number of significant deficiencies in non-financial reports | 0 | ||
2. Independent Auditor’s Report on Internal Control
? Applicable □ Not applicable
| Opinion paragraph | |
| Sichuan Huaxin (Group) CPA (LLP) is of the opinion that the Company maintained, in all material respects, effective internal control over financial reporting as of 31 December 2023, based on the Basic Rules on Enterprise Internal Control and other applicable regulations. | |
| Report disclosed or not | Disclosed |
| Disclosure date | 29 April 2024 |
| Index to the disclosed report | http://www.cninfo.com.cn |
| Type of opinion | Unmodified unqualified opinion |
| Material defects in internal control not related to financial reporting | N/A |
Indicate whether any modified opinion is expressed in the Independent Auditor’s Report on Internal Control.
□ Yes ? No
Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal controlself-assessment report issued by the Company’s Board of Directors.? Yes □ NoXV Remediation of Problems Identified by Self-inspection in the Special Action on theGovernance of Listed CompaniesCompleted.
Part V Environmental and Social Responsibility
I Major Environmental IssuesIndicate whether the Company or any of its subsidiaries was identified as a major polluter by environmentalauthorities.
? Yes □ No
1. Policies and Industry Standards on Environmental Protection
The Company has identified 204 laws, regulations, rules, and standards on environmental protection, such asthe Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of Chinaon Promoting Clean Production, the Law of the People's Republic of China on Water Pollution Prevention andControl, the Law of the People's Republic of China on Atmospheric Pollution Prevention and Control, the Law ofthe People's Republic of China on the Prevention and Control of Solid Waste Pollution, the Discharge Standard ofWater Pollutants for Fermentation Alcohol and Distilled Spirits Industry, the Technical Specifications for BrewingIndustry Wastewater Treatment, and the Discharge Standard of Water Pollutants in the Minjiang and TuojiangRiver Basis, formulated 16 policies on corporate environmental protection management, and developed therelevant internal control standards Brewery Wastewater Discharge Standards, which are stricter than the statutoryrequirements. And the Company ensures that all environmental protection concepts and requirements areimplemented into every aspect of daily production and operation activities.
2. Administrative Licenses of Environmental Protection
The Company was granted the pollutant discharge license valid between November 2019 and November2024 in accordance with the national pollutant discharge license management regulations. The new, renovationand expansion projects of the Company all met the requirements of laws and regulations, such as the nationalenvironmental protection law and the environmental impact assessment law, went through the environmentalimpact assessment and approval process before commencement, and carried out environmental protectionacceptance after completion. Additionally, all pollution governance facilities ran stably, and pollutants weredischarged in compliance with standards, satisfying the requirement for total emission control.
3. Industry Discharge Standards and Discharge of Pollutants in Production and Operation
| Name of the Company or subsidiary | Type of major pollutants | Major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration/intensity | Governing discharge standards | Total discharge (metric ton) | Approved total discharge (metric ton) | Excessive discharge |
| The Company | Water pollutants | COD | Direct discharge | 1 | Discharge outlets at Wuliangye Ecological Wetland | 38.01mg/l | Table 1 of the Discharge Standard of Water Pollutants in the Minjiang and Tuojiang River Basis (DB51/2311-2016) | 105.37 | 132 | None |
| Ammonia nitrogen | 1.58mg/l | 1.77 | 9.9 | None | ||||||
| Total nitrogen | 13.67mg/l | 30.61 | 49.5 | None | ||||||
| Total phosphorus | 0.45mg/l | 0.88 | 1.65 | None | ||||||
| Air pollutants | Particulate matter | Organized and interm | 18 | Natural gas boilers (Phase I) 1#-9# | 0.32 mg/m? | Table 3 of the Emission Standard of Air Pollutants for | 0.17 | N/A | None | |
| Natural gas | 0.31mg/m? | 0.18 | 8.88 | None |
| ittent discharge | boilers (Phase II) 10#-15# | Coal-burning Oil-burning Gas-fired Boiler (GB13271-2014) | |||||||
| Natural gas boilers (Phase III) 16#-18# | 0.49mg/m? | 0.06 | 3.54 | None | |||||
| 10 | Hot water boilers 1#-5# | 1.4 mg/m? | 0.03 | N/A | None | ||||
| Broken leaven outlets 1#-20# | 1.74 mg/m? | 0.05 | N/A | None | |||||
| 20 | Grain processing outlets 1#-18# | 18.43mg/m? | Table 2 of the Integrated Emission Standard of Air Pollutants (GB16297-1996) | 9.82 | N/A | None | |||
| 18 | Natural gas boilers (Phase I) 1#-9# | 24.52mg/m? | 10.44 | N/A | None | ||||
| Air pollutants | Sulfur dioxide | Organized and intermittent discharge | 18 | Natural gas boilers (Phase I) 1#-9# | 2.05mg/m? | Table 3 of the Emission Standard of Air Pollutants for Coal-burning Oil-burning Gas-fired Boiler (GB13271-2014) | 1.38 | N/A | None |
| Natural gas boilers (Phase II) 10#-15# | 2.25 mg/m? | 0.93 | 3.72 | None | |||||
| Natural gas boilers (Phase III) 16#-18# | 1.83mg/m? | 0.37 | 1.47 | None | |||||
| 10 | Hot water boilers 1#-5# | Not detected | 0.0004 | 0.15 | None | ||||
| Hot water boilers 6#-10# | Not detected | 0.0005 | N/A | None | |||||
| Air pollutants | Oxynitride | Organized and intermittent discharge | 18 | Natural gas boilers (Phase I) 1#-9# | 76.91mg/m? | 47.39 | 92.5 | None | |
| Natural gas boilers (Phase II) 10#-15# | 79.90mg/m? | 33.49 | 50.3 | None | |||||
| Natural gas boilers (Phase III) 16#-18# | 74.75mg/m? | 11.26 | 20.1 | None | |||||
| 10 | Hot water boilers 1#-5# | 92.53mg/m? | 0.1 | 0.5 | None | ||||
| Hot water boilers 6#-10# | 94.88mg/m? | 0.1 | 1.1 | None |
4. Treatments of Pollutants
(1) The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone inthe Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewatertreatment, with a daily capacity of 10,000 tons. The advanced treated tailwater in compliance with the applicablestandards is discharged after being further purified by ecological wetlands. The system is functioning normally.
(2) At present, the Company has built 18 20t/h natural gas boilers in the Jiangbei industrial park and put theminto operation, which adopt the advanced low-NOx combustion technology from Germany. The system isfunctioning normally. The leaven production line and the grain processing production line are equipped with bag-type dust collectors, which are also functioning normally.
5. Contingency Plan for Environmental Emergencies
In December 2023, the Company formulated and issued the Contingency Plan on Unexpected EnvironmentalEvents in Yibin City Wuliangye Industrial Park, Contingency Plan on Unexpected Environmental Events ofWuliangye Yibin Co., Ltd., Contingency Plan on Unexpected Environmental Events of Wuliangye Yibin Co., Ltd.(Special Plan for Baijiu Storage Tanks), and Contingency Plan on Unexpected Environmental Events ofWuliangye Yibin Co., Ltd. (Special Plan for Wastewater). Concurrently, updates were made to the risk assessmentreports and environmental contingency resource survey reports for environmental emergencies.
6. Environmental Self-Monitoring Plan
In strict compliance with the Self-monitoring and Information Disclosure Measure for National KeyMonitoring Enterprises (Trial) (H.F. [2013] No. 81) and the emission permits, the Company discloses its self-monitoring plans, annual reports and self-monitoring data to the public on the national pollutant source monitoring
information management and sharing platform. A total of 217,300 self-monitoring data were published fromJanuary to December 2023.
7. Spending on Environmental Protection and Payment of Environmental Protection TaxThe Company spent a total of approximately RMB250 million on environmental protection projects andpollution control facilities and paid environmental protection tax of RMB567.7 thousand.
8. Measures Taken to Reduce Carbon Emissions in the Reporting Period and the Results? Applicable □ Not applicableThe Company uses biogas generated from wastewater treatment to generate electricity with approximately
7.24 million kWh of electricity generated per year in this way, reducing greenhouse gas emissions byapproximately 3,806 tons.
9. Administrative Penalties Imposed for Environmental Issues during the Reporting Period
None.
10. Other Environmental Information that should Be Disclosed
In strict compliance with the Administrative Measures for the Legal Disclosure of Enterprise EnvironmentalInformation (Order No. 24 of the Ministry of Ecology and Environment), the Company disclosed environmentalinformation through the Management System of Sichuan Province for the Legal Disclosure of CorporateEnvironmental Information. In 2023, a total of five interim reports were disclosed, primarily involving changes inecological and environmental administrative permits.
11. Other Environmental Information
(1) The Company conducted internal audits of the environmental management system and energymanagement system. In accordance with the requirements of the management systems, a third-party organisationwas hired to conduct external supervisory audits of the Company's energy management system and environmentalmanagement system, and certificates were obtained.
(2) The Company conducted internal checks on greenhouse gas emissions in 2023.II Corporate Social Responsibility (CSR)
For details, please refer to the Environmental, Social and Governance Report 2023 disclosed by theCompany on 29 April 2024.III Efforts in Poverty Alleviation and Rural Revitalization
2023 was the first year for implementing the guiding principles of the 20th CPC National Congress on allfronts and a pivotal year for implementing the "14th Five-Year Plan". As a large state-owned enterprise, inaccordance with provincial and municipal arrangements, the Company supported and assisted Litang County inGanzi Prefecture and provided paired assistance to Yingxiong Village, Qingping Yi Ethnic Township, PingshanCounty, Yibin City. The Company's Party Committee resolutely fulfilled its political responsibilities, continuouslyimproved assistance mechanisms, specifically studied, researched, and deployed assistance work, and members ofthe leadership team conducted several in-depth investigations and guidance visits to the assisted areas. Solidprogress was made in assistance matters, earning recognition as the "Best Practice Case in Rural Revitalisation"by the Listed Companies Association and being selected as a case for the CCTV Global Social ResponsibilityRural Revitalisation Exhibition. The assisting officials were honoured as outstanding resident village work teammembers in the province and outstanding individuals in ethnic unity in the city, contributing to the successfulestablishment of "Civilised Demonstration Villages", "Six No" Safe Villages, advanced collective units in Partybuilding work, top ten villages in collective economic development, advanced collective units in educational work,and advanced collective villages in rural revitalisation.
(I) Strengthened base construction and the effective development of featured industries
Firstly, the Company established a high-mountain specialty tea base. In Pingshan County, the Company,based on the local industrial foundation and the development aspirations of the masses, donated funds forindustrial development and fully established a 200-mu "High-mountain Organic Tea Garden Demonstration Base".In 2023, 350,000 tea seedlings were planted, forming a radiation belt for the high-mountain tea industry. Secondly,the Company constructed highland fruit and vegetable bases. In Litang County, the Company fully stimulated theindustrial hematopoietic function of the assisted villages, strengthened the standardised operation andmanagement of Wuliangye Polar Fruit and Vegetable (Mushroom) Base, orderly advanced production and supply,cooperated with the "Hema Fresh" platform to expand market sales channels, and the base's production drovelocal employment for 25 people. The “Vegetable Basket” Vegetable Supply Base continued its projectimprovement efforts in 2023, upgrading 25 facility vegetable greenhouses, enhancing water and fertilizerintegration facilities, constructing a 200-square-meter agricultural product sorting centre, and supporting
refrigeration equipment.
(II) Conducted consumption assistance for sustainable income increase among poverty-alleviatedmassesFirstly, the Company promoted internal sales. In 2023, the Company effectively organised events such as theSpring Festival centralised procurement and agricultural special sales, contributing to a total sales revenue of overRMB14.3 million for local products throughout the year. This directly boosted the collective economic income ofHero Village in Pingshan County by over RMB1.9 million, with an economic net profit of nearly RMB200,000.Additionally, Mayan Village in Litang County achieved sales revenue of over RMB2.6 million, with dividends forthe masses exceeding RMB210,000. Secondly, the Company helped to expand external markets. Adhering tomarket orientation, leveraging the Company's brand advantages and channel strengths, through the external andinternal connection and online and offline combination, consumption assistance became an important "engine" forrural revitalisation and common prosperity. At the Rural Revitalisation Technology and Skills Competition TradeShow for Special Agricultural Products and Sichuan Goods E-commerce Festival, the Company promoted andsold assisted products such as Litang County's mushrooms, honey from Pingshan County, and bamboo shoots. InLitang County, the Company established the country's first organic Tibetan mushroom "Hema Village". The salesrevenue of Tibetan mushrooms in Hema MAX stores nationwide exceeded RMB1.7 million, both online andoffline.(III) Strengthened organisational construction for solid rural governanceFirstly, the Company consolidated the Party branch pairing. Adhering to high-quality Party building leadinggrassroots governance efficiency, the Company's Cultural and Tourism Company Party General Branch under theParty Committee paired with the Naisha Village Party Branch in Mula Town, Litang County, for mutualconstruction. A normalised Party building guidance group was stationed in the village, supporting primary-levelParty building, reserve force cultivation, and capacity enhancement. Efforts were made to jointly buildorganisational positions, share Party member education, coordinate activity organisation, jointly serve the people,and operate an efficient mechanism for scientific development and mutual benefits. Secondly, the Companystrengthened position construction. The Company's resident work team coordinated special funds of over RMB0.3million for assistance, upgrading the Hero Village Party building position, improving its functions, and striving tobuild a county-level Party building work demonstration site. The assisting officials strictly implemented theregulations of "Three Sessions and One Class", democratic life meetings, and heart-to-heart talks, helping tocultivate active Party members in assisted villages, develop young Party members, and reserve backup cadres,further addressing the aging issue among rural Party members, laying a solid foundation for the "two committees"to play their role as strongholds.
(IV) Concentrated on education and training for strengthening intellectual support
Firstly, the Company supported educational assistance. The Company continued to organise the "WuliangyeEducation Fund" educational aid activity, allocating RMB2 million to reward and support students and educatorsin Yibin City, contributing to the local education sector's development with practical actions. Special educationalaid funds were distributed to 41 disadvantaged college students in Qingping Yi Autonomous Township, PingshanCounty and 20 in Litang County, supporting them in pursuing their dreams. A donation of RMB60,000 was madeto provide nearly 300 students at Qingping Yi Ethnic Starbase Primary School with compassionate studentassistance packages. Extensive efforts were made to mobilise social forces, organising caring activities at StarbaseSchool in Pingshan County and donating over 2,500 sets (pieces) of study and living materials worthapproximately RMB250,000. Secondly, the Company implemented rural talent training. Normalised activitiessuch as farmer and herder night schools and technical training were conducted more than 20 times, covering over500 participants, contributing to the cultivation of a group of "local experts" and "field talents".
(V) Improved public services and enhanced management efficiency
Firstly, the Company improved facility construction. With over RMB9 million in fiscal appropriations andcompany donations, efforts were made to widen, upgrade, and harden two village roads, and maintain and managebasic supporting facilities such as water, electricity, networks, and pipelines in assisted villages, addressing localinfrastructure shortcomings. Secondly, the Company provided assistance to the needy. Resident officials activelycoordinated assistance, arranging subsidies for over 30 migrant workers, securing industrial development fundsfor 25 impoverished households to develop industries such as farming and animal husbandry. Comfort packagesand condolences worth over RMB100,000 were distributed to elderly, disabled, and left-behind children. Over 20disputes and practical issues were resolved for the people. Thirdly, the Company enhanced emergency responsecapabilities. By establishing fire emergency firefighting teams, flood control emergency groups, and earthquakerelief emergency rescue teams in assisted villages, corresponding emergency plans were formulated. Regulardisaster prevention and mitigation drills were organised for villagers, and various emergency equipment and
materials, totaling 342 sets (pieces), were donated by the Company's basic militia team, further enhancing theemergency response capabilities of assisted villages.(VI) Promoted civilised rural customs and continuous progress in spiritual civilisationFirstly, the Company supported ethnic cultural project construction. In 2023, the Company donated RMB1million to support the construction of the "Wuliangye Torch Square" in Qingping Yi Autonomous Township,enriching the cultural life of the masses, fostering an atmosphere of diligence and enterprising spirit, andprospering rural culture. This aimed to cultivate a civilised village atmosphere, good family ethics, and simplefolk customs, striving to build a benchmark for Yi culture revitalisation. Secondly, the Company carried outcivilised rural activities. In the assisted areas, extensive campaigns promoting civilised rural customs were carriedout, actively promoting the selection of good deeds and morality, clean family ethics, civilised families, andexemplary individuals, inheriting and promoting excellent traditional customs, curbing negative practices, andrectifying vices such as pornography, gambling, and drugs, guiding the masses to create a happy life through hardwork. Last but not least, the Company facilitated civilization with its corporate culture. It encouraged villagersfrom the assisted villages to go to Wuliangye. Additionally, Wuliangye capitalized on the cultivation methods ofthe corporate culture to help the assisted villages refine and develop values and cultures that have a rich rusticflavour and will inspire people to work hard. Moreover, rustic culture publicity platforms were established toguide the abolishment of outmoded conventions and customs through healthy corporate culture.
Part VI Significant Events
I Fulfillment of Undertakings
1. Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as wellas the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end? Applicable □ Not applicableBased on their confidence in the Company's prospects and recognition of its long-term investment value,Yibin Development Holding Group Co., Ltd. and Sichuan Yibin Wuliangye Group Co., Ltd. have voluntarilyundertaken not to reduce their shareholdings in the Company in any way within one year from 24 August 2023,and the undertakings are being honoured continuously.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was stillwithin the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable ? Not applicable
II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its RelatedParties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees for External Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Statement Made by the Board of Directors Regarding the Latest “Modified Opinion” of anIndependent Auditor on Financial Statements
□ Applicable ? Not applicable
V Statements Made by the Board of Directors, the Supervisory Committee and theIndependent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” onthe Financial Statements of the Reporting Period
□ Applicable ? Not applicable
VI Changes to Accounting Policies and Estimates and Correction of Material AccountingErrors Compared with Last Year
? Applicable □ Not applicable
For details, see “28. Changes to Significant Accounting Policies and Estimates” under “V SignificantAccounting Policies and Accounting Estimates” of “Part X”.VII Changes to the Scope of Consolidated Financial Statements Compared with Last Year
? Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, theCompany’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in 2023.
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, theCompany’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited hasincorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’anPlastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’anPlastic.VIII Appointment and Dismissal of CPA Firm
Current CPA firm:
| Name of the domestic CPA firm | Sichuan Huaxin (Group) CPA (LLP) |
| The Company’s payment to the domestic CPA firm (RMB’0,000) | 158 |
| How many consecutive years the domestic CPA firm has provided audit service for the Company | 23 |
| Names of the certified public accountants from the domestic CPA firm writing signatures on the independent auditor’s report | Li Wulin, Ye Juan, and Luo Guiqiu |
| How many consecutive years the certified public accountants have provided audit service for the Company | Li Wulin: 3 years Ye Juan: 4 years Luo Guiqiu: 3 years |
Indicate whether the CPA firm was changed for the Reporting Period.
□ Yes ? No
CPA firm appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
? Applicable □ Not applicableThe Company re-appointed Sichuan Huaxin (Group) CPA (LLP) as the independent auditor for internalcontrol of the Company in 2023, with a payment of RMB600,000.
IX Possibility of Delisting after the Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.XI Significant Legal Matters
□ Applicable ? Not applicable
No such cases in the Reporting Period.XII Penalties and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Credit Standings of the Company as well as Its Controlling Shareholder and ActualController
? Applicable □ Not applicable
The Company as well as its controlling shareholder and actual controller were in good credit standing duringthe Reporting Period.XIV Significant Related-Party Transactions
1. Continuing Related-Party Transactions
? Applicable □ Not applicable
See “5. Related-Party Transactions” under “XIII Related Parties and Related-Party Transactions” of Part X.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
? Applicable □ Not applicableMaking deposits:
| Related party | Relationship | Upper limit of daily deposit (RMB’0,000) | Range of interest rate | Opening balance (RMB’0,000) | Amount incurred in the current period | Closing balance (RMB’0,000) | |
| Total amount deposited (RMB’0,000) | Total amount withdrawn (RMB’0,000) | ||||||
| Wuliangye Group Finance | Associate | 4,790,000 | 0.42%～3.5% | 3,504,433.17 | 2,190,976.19 | 1,665,455.61 | 4,029,953.75 |
Note: The amount incurred in the current period is presented on a net basis, which means such transactionsare eliminated as the same company withdrawing a deposit and making another deposit of a different kind, orcompanies included in the consolidated financial statements making transfers via Wuliangye Group Finance.
Receiving loans:
The Company received no loans from Wuliangye Group Finance during the Reporting Period.
Receiving credit (inclusive of discounting) or other financial services:
| Related party | Relationship | Type of business | Line (RMB’0,000) | Amount incurred (RMB’0,000) |
| Wuliangye Group Finance | Associate | Receiving credit | 1,000,000 | 117,410.43 |
Note: On 19 April 2023, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (WuliangyeGroup Finance) signed a supplementary agreement to the Financial Service Agreement, agreeing to continue toimplement in 2023 “the Financial Service Agreement signed between the Company and Wuliangye Group Financeon 2 April 2021”, i.e. the daily total balance of outstanding loans and unused credit with Wuliangye GroupFinance shall not exceed RMB10 billion in 2023.
The “amount incurred” in the Reporting Period includes the discounted bank acceptance bills ofRMB536.1401 million with Wuliangye Group Finance (undue bank acceptance bills as of 31 December 2023:
RMB69.75 million) and the bank acceptance bills of RMB637.9642 million issued by Wuliangye Group Finance(undue bank acceptance bills as of 31 December 2023: RMB466.5011 million).
6. Transactions between Finance Companies Controlled by the Company and Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
7. Other Significant Related-Party Transactions
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XV Significant Contracts and Execution
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□ Applicable ? Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
□ Applicable ? Not applicable
No such cases in the Reporting Period.XVII Significant Events of Subsidiaries
? Applicable □ Not applicable
In order to optimize the branch company and subsidiary allocation as a state-owned enterprise, theCompany’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in 2023.
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, theCompany’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited hasincorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’anPlastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’anPlastic.
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease in the current period (+/-) | After | |||||||
| Number of shares | As % of total shares | New issue | Bonus issue from profit | Bonus issue from capital reserves | Other | Subtotal | Number of shares | As % of total shares | |
| I Restricted shares | 82,098 | 0.00% | 0 | 0 | 82,098 | 0.00% | |||
| 1. Shares held by the state | |||||||||
| 2. Shares held by state-owned corporations | |||||||||
| 3. Shares held by other domestic investors | 82,098 | 0.00% | 0 | 0 | 82,098 | 0.00% | |||
| Of which: Shares held by domestic corporations | |||||||||
| Shares held by domestic individuals | 82,098 | 0.00% | 0 | 0 | 82,098 | 0.00% | |||
| 4. Shares held by overseas investors | |||||||||
| Of which: Shares held by overseas corporations | |||||||||
| Shares held by overseas individuals | |||||||||
| II Unrestricted shares | 3,881,525,907 | 100.00% | 0 | 0 | 3,881,525,907 | 100.00% | |||
| 1. RMB-denominated ordinary shares | 3,881,525,907 | 100.00% | 0 | 0 | 3,881,525,907 | 100.00% | |||
| 2. Domestically listed foreign shares | |||||||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III Total shares | 3,881,608,005 | 100.00% | 3,881,608,005 | 100.00% | |||||
Reasons for share changes:
□ Applicable ? Not applicable
Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
□ Applicable ? Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per shareattributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the latestaccounting period, respectively:
□ Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to bedisclosed:
□ Applicable ? Not applicable
2. Changes in Restricted Shares
□ Applicable ? Not applicable
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
□ Applicable ? Not applicable
2. Changes in Total Shares and Ownership Structure, as well as Asset and Liability Structures
□ Applicable ? Not applicable
3. Existing Staff-Held Shares
□ Applicable ? Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
| Number of ordinary shareholders at the period-end | 648,597 | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 568,852 | Number of preference shareholders with resumed voting rights at the period-end (if any) (see note 8) | 0 | Number of preference shareholders with resumed voting rights at the month-end prior to the disclosure of this Report (if any) (see note 8) | 0 | |
| 5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing) | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge, marked or frozen | |
| Status | Shares | |||||||
| Yibin Development Holding Group Co., Ltd. | State-owned corporation | 34.43% | 1,336,548,020 | 1,336,548,020 | ||||
| Sichuan Yibin Wuliangye Group Co., Ltd. | State-owned corporation | 20.40% | 791,823,343 | 791,823,343 | ||||
| Hong Kong Securities Clearing Company Limited | Overseas corporation | 4.51% | 174,889,667 | -52,677,563 | 174,889,667 | |||
| China Securities Finance Corporation Limited | Other | 2.38% | 92,385,936 | 92,385,936 | ||||||
| Bank of China Limited－China Merchants China Securities Baijiu Index Classification Securities Investment Fund | Other | 1.47% | 57,117,979 | 3,304,915 | 57,117,979 | |||||
| Central Huijin Asset Management Co., Ltd. | State-owned corporation | 1.01% | 39,325,400 | 39,325,400 | ||||||
| Bank of China Limited－E Fund Blue Chip Selected Mixed Securities Investment Fund | Other | 0.76% | 29,380,000 | -1,320,000 | 29,380,000 | |||||
| China Life Insurance Company Limited－Traditional－General Insurance Product-005L-CT001 Shanghai | Other | 0.61% | 23,528,731 | 2,203,294 | 23,528,731 | |||||
| Industrial and Commercial Bank of China Limited－Invesco Great Wall Newly Growth Mixed Securities Investment Fund | Other | 0.47% | 18,429,500 | -3,803,600 | 18,429,500 | |||||
| Industrial and Commercial Bank of China Limited -Huatai Bairui CSI 300 Traded Open-ended Index Securities Investment Fund | Other | 0.38% | 14,612,209 | 6,648,608 | 14,612,209 | |||||
| Strategic investor or general corporation becoming a top-10 shareholder in a rights issue (if any) (see note 3) | N/A | |||||||||
| Related or acting-in-concert parties among the shareholders above | Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin Development Group. And the Company is not aware of any related or acting-in-concert parties among the other public shareholders. | |||||||||
| Shareholders above entrusting/entrusted with or waiving voting rights | N/A | |||||||||
| Repurchased share account (if any) among the top 10 shareholders (see note 10) | N/A | |||||||||
| Top 10 unrestricted shareholders | ||||||||||
| Name of shareholder | Unrestricted shares held at the period-end | Shares by class | ||||||||
| Class | Shares | |||||||||
| Yibin Development Holding Group Co., Ltd. | 1,336,548,020 | RMB-denominated ordinary shares | 1,336,548,020 | |||||||
| Sichuan Yibin Wuliangye Group Co., Ltd. | 791,823,343 | RMB-denominated ordinary shares | 791,823,343 |
| Hong Kong Securities Clearing Company Limited | 174,889,667 | RMB-denominated ordinary shares | 174,889,667 |
| China Securities Finance Corporation Limited | 92,385,936 | RMB-denominated ordinary shares | 92,385,936 |
| Bank of China Limited－China Merchants China Securities Baijiu Index Classification Securities Investment Fund | 57,117,979 | RMB-denominated ordinary shares | 57,117,979 |
| Central Huijin Asset Management Co., Ltd. | 39,325,400 | RMB-denominated ordinary shares | 39,325,400 |
| Bank of China Limited－E Fund Blue Chip Selected Mixed Securities Investment Fund | 29,380,000 | RMB-denominated ordinary shares | 29,380,000 |
| China Life Insurance Company Limited－Traditional－General Insurance Product-005L-CT001 Shanghai | 23,528,731 | RMB-denominated ordinary shares | 23,528,731 |
| Industrial and Commercial Bank of China Limited－Invesco Great Wall Newly Growth Mixed Securities Investment Fund | 18,429,500 | RMB-denominated ordinary shares | 18,429,500 |
| Industrial and Commercial Bank of China Limited -Huatai Bairui CSI 300 Traded Open-ended Index Securities Investment Fund | 14,612,209 | RMB-denominated ordinary shares | 14,612,209 |
| Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin Development Group. And the Company is not aware of any related or acting-in-concert parties among the other public shareholders. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | N/A | ||
Top 10 shareholders involved in refinancing shares lending:
□ Applicable ? Not applicable
Changes in top 10 shareholders compared with the prior period:
? Applicable □ Not applicable
Unit: share
| Changes in top 10 shareholders compared with the end of the prior period | |||||
| Full name of shareholder | Newly added to or exiting from top 10 shareholders in the Reporting Period | Shares lent in refinancing and not yet returned at the period-end | Shares in the common account and credit account plus shares lent in refinancing and not yet returned at the period-end | ||
| Total shares | As % of total share capital | Total shares | As % of total share capital | ||
| Industrial and Commercial Bank of China Limited -Huatai Bairui CSI 300 Traded Open-ended Index Securities Investment Fund | Newly added | 0 | 0.00% | 14,612,209 | 0.38% |
| Agricultural Bank of China Limited－E Fund Consumer Sector Stock Investment Fund | Exiting | 0 | 0.00% | 13,400,365 | 0.35% |
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders ofthe Company conducted any promissory repurchase during the Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: controlled by a local state-owned organizationType of the controlling shareholder: corporation
| Name of the controlling shareholder | Legal representative/person-in-charge | Date of incorporation | Organization code | Principal activities |
| Yibin Development Holding Group Co., Ltd. | Han Chengke | 4 August 1999 | 915115007118234259 | Capital and asset operations as authorized by the People’s Government of Yibin City |
| Interests held in other domestically and overseas listed companies in the Reporting Period | Yibin Development Group directly held 228,708,436 shares (or 17.57%) in Yibin Tianyuan Group Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd. | |||
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: local state-owned assets management organizationType of the actual controller: corporation
| Name of the actual controller | Legal representative/person-in-charge | Date of incorporation | Organization code | Principal activities |
| The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin City | Xiang Junge | 24 February 2005 | N/A | N/A |
| Interests controlled in other domestically and overseas listed companies in the Reporting Period | SASAC Yibin indirectly held 228,708,436 shares (or 17.57%) in Yibin Tianyuan Group Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd. | |||
Change of the actual controller in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Illustration of the relationship between the actual controller and the Company:
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
4. Indicate whether the cumulative number of shares held by the Company’s controlling shareholder or thelargest shareholder and its acting-in-concert parties that are in pledge accounts for over 80% of their totalshareholdings in the Company.
□ Applicable ? Not applicable
5. Other 10% or Greater Corporate Shareholders
? Applicable □ Not applicable
| Name of corporate shareholder | Legal representative/person-in-charge | Date of incorporation | Registered capital | Principal activities |
| Sichuan Yibin Wuliangye Group Co., Ltd. | Zeng Congqin | 12 August 1998 | RMB1,000,000,000 | Investment and investment management, asset management, and business management services |
6. Restrictions on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Undertaking Makers
□ Applicable ? Not applicable
IV Share Repurchases in the Reporting PeriodProgress on any share repurchase:
□ Applicable ? Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable ? Not applicable
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□ Applicable ? Not applicable
Part X Financial Statements
I Independent Auditor’s Report
| Type of the independent auditor’s opinion | Unmodified unqualified opinion |
| Date of signing the independent auditor’s report | 24 April 2024 |
| Name of the independent auditor | Sichuan Huaxin (Group) CPA (LLP) |
| Number of the independent auditor’s report | Huaxin Audit (2024) No. 0009 |
| Names of the certified public accountants | Li Wulin, Ye Juan, and Luo Guiqiu |
Independent Auditor’s Report
To the Shareholders of Wuliangye Yibin Co., Ltd.:
I OpinionWe have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the“Company”), which comprise the consolidated and parent company (the Company as the parent exclusive ofsubsidiaries) balance sheets as at 31 December 2023, the consolidated and parent company statements of income,cash flows and changes in owners’ equity for the year then ended, as well as the notes to the financial statements.In our opinion, the financial statements referred to above present fairly, in all material respects, theconsolidated and parent company financial position of the Company at 31 December 2023, and the consolidatedand parent company operating results and cash flows for the year then ended, in conformity with China’sAccounting Standards for Business Enterprises (CAS).II Basis for OpinionWe conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of FinancialStatements section of our report. We are independent of the Company in accordance with the China Code ofEthics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance withthe said Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.III Key Audit MattersKey audit matters are matters that, based on our professional judgment, are deemed most important to theaudit of the financial statements of the current period. These matters were addressed in the context of our audit ofthe financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinionon these matters. The key audit matters we identified in our audit are as follows:
| Key audit matters | Audit response |
| (I) Existence and integrity of monetary assets | |
| Please refer to notes to financial statements "V. Notes to consolidated financial statements, 1. Monetary assets". As at 31 December 2023, the balance of monetary assets of the Company was RMB115,456.3009 million, accounting for 69.79% of the total assets. The safety of deposits and the accuracy and integrity of balance have great impact on the financial statements due to the large amount of balance of monetary assets and large number of bank accounts. Therefore, we consider the existence and integrity of monetary | With respect of monetary assets, we conducted the following audit procedures: 1. Understood, tested, and evaluated key internal controls related to the management of monetary assets; 2. Obtained list of bank accounts opened, and checked the books of the Company against the bank account information and integrity of the bank accounts; 3. Obtained the bank statement and bank reconciliation for confirmation of the bank accounts, and controlled the process of confirmation; 4. Supervised the originals of certificate of time deposit, and paid attention to the holders of certificate of time deposit and other information; 5. Obtained credit report of the enterprise and checked whether the monetary assets are under mortgage, charge or frozen; 6. At the end of the period, the amount deposited with Sichuan Yibin Wuliangye Group Finance Co., Ltd. was RMB40,299.5375 million in total; the deposit and loan business of Sichuan Yibin Wuliangye Group Finance Co., |
| assets as a key audit matter. | Ltd. was checked. We believe that the above audit procedures can support the management of the Company in their determination of the existence and integrity of monetary assets. |
| (II) Recognition of operating revenue | |
| Please refer to notes to financial statement "V Notes to the Consolidated Financial Statements, 34. Operating revenue and cost of sales". The Company recorded operating revenue of RMB83,272.0673 million during 2023, which was the main source of the operating profit. And operating revenue is one of the key performance indicators. Therefore, we consider the recognition of operating revenue as a key audit matter. | With respect of operating revenue, we conducted the following audit procedures: 1. Understood, tested, and evaluated key internal controls related to the recognition of operating revenue; 2. Selected samples to examine sales contracts and identify contractual terms and conditions relating to the transfer of control of goods in order to evaluate whether the time of recognition of operating revenue meets the requirements of the CAS; 3. Performed analytical review procedures to compare the key indicators such as sales volumes, unit sales prices, gross margins and major customers for the current period with the previous period to identify changes in key indicators and the reasonableness of the changes; 4. Performed detail testing by selecting samples of the revenue and transactions of the principal operations recorded during the year and examining supporting documentation such as sales contracts or orders, release orders, delivery notes, customer sign-off records, sales invoices, etc. to evaluate the authenticity and accuracy of operating revenue recognition; 5. Selected samples of sales transactions near the year-end and examined samples of relevant supporting documentation (including dispatch notes or customer acknowledgement of receipt) to assess whether operating revenue is recognised in the appropriate accounting period; and 6. Selected samples of major distributors in conjunction with the audit of contract liabilities to perform correspondence procedures to verify the amount of operating revenue for the period and the closing balance of contract liabilities and verify the authenticity and accuracy of the amount of operating revenue recognized by management. We believe that the above audit procedures can support the management of the Company in their determination of the recognition of operating revenue. |
IV Other InformationThe Company’s management is responsible for the other information. The other information comprises allof the information included in the Company’s 2023 Annual Report other than the financial statements and ourauditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial StatementsThe Company’s management is responsible for the preparation of the financial statements that give a fairview in accordance with CAS, and for designing, implementing and maintaining such internal control as themanagement determines is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern (if applicable) and usingthe going concern basis of accounting unless the management either intends to liquidate the Company or to ceaseoperations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with CAS will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmay cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by CAS to draw users’ attention in our auditor’s report to the relateddisclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future eventsor conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We are responsible forthe direction, supervision and performance of the Company audit. We remain solely responsible for our auditopinion.
We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any noteworthy deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and communicate with them all relationships and other matters thatmay reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that wereof most significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA (LLP) Chinese certified public accountant: Li Wulin
(engagement partner)Chengdu · China
Chinese certified public accountant: Ye Juan
Chinese certified public accountant: Luo Guiqiu
24 April 2024
II Financial Statements
Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated:
RMB
1. Consolidated Balance Sheet
Prepared by Wuliangye Yibin Co., Ltd.31 December 2023 Unit: RMB
| Item | 31 December 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 115,456,300,910.64 | 92,358,426,975.79 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | 119,918,307.60 | |
| Accounts receivable | 42,647,461.48 | 35,686,942.32 |
| Receivables financing | 14,086,450,565.79 | 28,904,198,420.44 |
| Prepayments | 169,425,745.15 | 135,982,868.14 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 39,624,933.74 | 30,901,231.69 |
| Of which: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 17,387,841,712.87 | 15,980,657,013.57 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | ||
| Total current assets | 147,182,291,329.67 | 137,565,771,759.55 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 2,020,366,240.69 | 1,986,387,524.78 |
| Other equity investments | ||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
| Investment property | ||
| Fixed assets | 5,189,917,302.17 | 5,312,971,445.61 |
| Construction in progress | 5,623,356,422.20 | 3,773,155,983.95 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 126,810,315.49 | 380,922,885.84 |
| Intangible assets | 2,056,870,639.03 | 518,517,835.31 |
| Development costs | ||
| Goodwill | 1,621,619.53 | 1,621,619.53 |
| Long-term prepaid expense | 163,120,023.86 | 158,586,327.06 |
| Deferred income tax assets | 2,242,610,567.82 | 2,140,289,194.58 |
| Other non-current assets | 824,817,224.29 | 972,502,674.97 |
| Total non-current assets | 18,250,690,355.08 | 15,246,155,491.63 |
| Total assets | 165,432,981,684.75 | 152,811,927,251.18 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 732,432,611.26 | 887,970,376.53 |
| Accounts payable | 8,864,206,997.09 | 7,246,802,709.58 |
| Advances from customers | 17,522,814.61 | 16,160,671.49 |
| Contract liabilities | 6,864,383,635.25 | 12,379,125,542.70 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 3,872,122,436.43 | 3,375,526,829.88 |
| Taxes and levies payable | 6,268,458,145.77 | 5,301,718,185.93 |
| Other payables | 5,385,776,903.69 | 4,631,434,915.43 |
| Of which: Interest payable | ||
| Dividends payable | 13,191,392.99 | |
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 14,512,448.92 | 375,682,599.77 |
| Other current liabilities | 663,723,991.63 | 1,544,723,419.34 |
| Total current liabilities | 32,683,139,984.65 | 35,759,145,250.65 |
| Non-current liabilities: |
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Of which: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | 115,722,608.68 | 16,976,148.73 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 253,043,325.37 | 254,416,864.75 |
| Deferred income tax liabilities | 31,702,578.88 | 94,360,946.95 |
| Other non-current liabilities | ||
| Total non-current liabilities | 400,468,512.93 | 365,753,960.43 |
| Total liabilities | 33,083,608,497.58 | 36,124,899,211.08 |
| Owners’ equity: | ||
| Share capital | 3,881,608,005.00 | 3,881,608,005.00 |
| Other equity instruments | ||
| Of which : Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 2,682,647,086.15 | 2,682,647,086.15 |
| Less: Treasury shares | ||
| Other comprehensive income | ||
| Specific reserve | ||
| Surplus reserves | 33,588,553,502.81 | 28,432,482,367.38 |
| General reserve | ||
| Retained earnings | 89,405,432,446.55 | 79,031,159,753.65 |
| Total equity attributable to owners of the Company as the parent | 129,558,241,040.51 | 114,027,897,212.18 |
| Non-controlling interests | 2,791,132,146.66 | 2,659,130,827.92 |
| Total owners’ equity | 132,349,373,187.17 | 116,687,028,040.10 |
| Total liabilities and owners’ equity | 165,432,981,684.75 | 152,811,927,251.18 |
Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Liu Hongxu
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 60,323,450,012.71 | 51,104,448,387.06 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable |
| Receivables financing | ||
| Prepayments | 3,380,448.33 | 33,048,447.08 |
| Other receivables | 6,485,949,705.92 | 8,462,631,304.66 |
| Of which: Interest receivable | ||
| Dividends receivable | 930,755,375.66 | 2,126,718,123.00 |
| Inventories | ||
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | ||
| Total current assets | 66,812,780,166.96 | 59,600,128,138.80 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 13,436,738,333.48 | 13,383,816,192.05 |
| Other equity investments | ||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
| Investment property | ||
| Fixed assets | 114,171,167.35 | 100,713,555.25 |
| Construction in progress | 112,398,471.31 | 115,870,542.48 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 985,149.93 | 1,948,611.38 |
| Intangible assets | 39,378,847.31 | 38,664,783.59 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | ||
| Deferred income tax assets | 11,183,406.83 | 1,375,528.61 |
| Other non-current assets | ||
| Total non-current assets | 13,716,055,376.21 | 13,643,589,213.36 |
| Total assets | 80,528,835,543.17 | 73,243,717,352.16 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 175,000.00 | 1,134,674.42 |
| Advances from customers | ||
| Contract liabilities |
| Employee benefits payable | 9,870,448.65 | 4,106,534.36 |
| Taxes and levies payable | 86,642,875.45 | 277,283,965.88 |
| Other payables | 159,525,988.83 | 146,366,462.73 |
| Of which: Interest payable | ||
| Dividends payable | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 685,585.96 | 1,170,924.31 |
| Other current liabilities | ||
| Total current liabilities | 256,899,898.89 | 430,062,561.70 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Of which: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 7,750,000.00 | 500,000.00 |
| Deferred income tax liabilities | 246,287.48 | 487,152.85 |
| Other non-current liabilities | ||
| Total non-current liabilities | 7,996,287.48 | 987,152.85 |
| Total liabilities | 264,896,186.37 | 431,049,714.55 |
| Owners’ equity: | ||
| Share capital | 3,881,608,005.00 | 3,881,608,005.00 |
| Other equity instruments | ||
| Of which: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 2,682,647,086.15 | 2,682,647,086.15 |
| Less: Treasury shares | ||
| Other comprehensive income | ||
| Specific reserve | ||
| Surplus reserves | 15,508,769,954.04 | 13,295,618,638.02 |
| Retained earnings | 58,190,914,311.61 | 52,952,793,908.44 |
| Total owners’ equity | 80,263,939,356.80 | 72,812,667,637.61 |
| Total liabilities and owners’ equity | 80,528,835,543.17 | 73,243,717,352.16 |
3. Consolidated Income Statement
Unit: RMB
| Item | 2023 | 2022 |
| I Total revenues | 83,272,067,317.19 | 73,968,640,704.54 |
| Of which: Operating revenue | 83,272,067,317.19 | 73,968,640,704.54 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| II Total costs and expenses | 41,653,257,827.54 | 37,049,016,916.17 |
| Of which: Cost of sales | 20,157,143,952.21 | 18,178,425,659.64 |
| Interest costs | ||
| Fee and commission costs | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 12,531,695,628.42 | 10,748,802,377.04 |
| Selling expense | 7,796,298,418.13 | 6,844,237,013.17 |
| Administrative expense | 3,319,445,339.77 | 3,068,119,268.45 |
| R&D expense | 321,845,165.28 | 235,783,645.79 |
| Finance costs | -2,473,170,676.27 | -2,026,351,047.92 |
| Of which: Interest expense | 11,618,338.87 | 48,003,667.91 |
| Interest income | 2,487,953,643.33 | 2,075,700,630.12 |
| Add: Other income | 330,670,203.50 | 186,525,904.41 |
| Return on investment (“－” for loss) | 57,617,083.91 | 92,571,951.15 |
| Of which: Share of profit or loss of joint ventures and associates | 57,617,083.91 | 92,571,951.15 |
| Income from the derecognition of financial assets at amortized cost | ||
| Exchange gain (“－” for loss) | ||
| Net gain on exposure hedges (“－” for loss) | ||
| Gain on changes in fair value (“－” for loss) | ||
| Credit impairment loss (“－” for loss) | -772,191.29 | -1,437,932.66 |
| Asset impairment loss (“－” for loss) | -3,932,827.97 | -26,207,459.87 |
| Asset disposal income (“－” for loss) | 1,272,004.07 | 3,347,202.23 |
| III Operating profit (“－” for loss) | 42,003,663,761.87 | 37,174,423,453.63 |
| Add: Non-operating income | 45,351,676.69 | 38,885,270.86 |
| Less: Non-operating expense | 136,333,494.92 | 109,788,008.25 |
| IV Gross profit (“－” for gross loss) | 41,912,681,943.64 | 37,103,520,716.24 |
| Less: Income tax expense | 10,391,904,361.49 | 9,133,735,140.97 |
| V Net profit (“－” for net loss) | 31,520,777,582.15 | 27,969,785,575.27 |
| (I) By operating continuity |
| 1. Net profit from continuing operations (“－” for net loss) | 31,520,777,582.15 | 27,969,785,575.27 |
| 2. Net profit from discontinued operations (“－” for net loss) | ||
| (II) By ownership | ||
| 1. Net profit attributable to owners of the Company as the parent | 30,210,585,269.30 | 26,689,983,647.20 |
| 2. Net profit attributable to non-controlling interests | 1,310,192,312.85 | 1,279,801,928.07 |
| VI Other comprehensive income, net of tax | ||
| Other comprehensive income, net of tax attributable to owners of the Company as the parent | ||
| (I) Other comprehensive income that will not be reclassified to profit or loss | ||
| 1. Changes caused by remeasurements on defined benefit schemes | ||
| 2. Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 3. Changes in the fair value of other debt investments | ||
| 4. Changes in the fair value arising from changes in own credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4. Credit impairment allowances for other debt investments | ||
| 5. Reserve for cash flow hedges | ||
| 6. Differences arising from the translation of foreign currency-denominated financial statements | ||
| 7. Other | ||
| Other comprehensive income, net of tax attributable to non-controlling interests | ||
| VII Total comprehensive income | 31,520,777,582.15 | 27,969,785,575.27 |
| Total comprehensive income attributable to owners of the Company as the parent | 30,210,585,269.30 | 26,689,983,647.20 |
| Total comprehensive income attributable to non-controlling interests | 1,310,192,312.85 | 1,279,801,928.07 |
| VIII Earnings per share: | ||
| (I) Basic earnings per share | 7.783 | 6.876 |
| (II) Diluted earnings per share | 7.783 | 6.876 |
Where business combinations involving entities under common control occurred in the current period, the netprofit achieved by the acquirees before the combinations was RMB0.00, with the amount for last year beingRMB0.00.Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Liu Hongxu
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | 2023 | 2022 |
| I Operating revenue | ||
| Less: Cost of sales |
| Taxes and levies | 5,525,662.89 | 370,416.70 |
| Selling expense | ||
| Administrative expense | 145,421,663.00 | 142,946,488.68 |
| R&D expense | 70,544,137.04 | 55,470,547.04 |
| Finance costs | -1,501,998,089.99 | -1,320,194,889.62 |
| Of which: Interest expense | 40,603.37 | 68,515.70 |
| Interest income | 1,502,063,802.45 | 1,320,290,654.38 |
| Add: Other income | 4,133,599.46 | 20,873,010.56 |
| Return on investment (“－” for loss) | 21,190,098,296.84 | 18,799,779,256.49 |
| Of which: Share of profit or loss of joint ventures and associates | 53,018,529.95 | 87,619,669.47 |
| Income from the derecognition of financial assets at amortized cost (“－” for loss) | ||
| Net gain on exposure hedges (“－” for loss) | ||
| Gain on changes in fair value (“－” for loss) | ||
| Credit impairment loss (“－” for loss) | -1,503,446.05 | -1,002,989.80 |
| Asset impairment loss (“－” for loss)） | ||
| Asset disposal income (“－” for loss) | -92,629.13 | |
| II Operating profit (“－” for loss) | 22,473,142,448.18 | 19,941,056,714.45 |
| Add: Non-operating income | 88,980.74 | 413,500.00 |
| Less: Non-operating expense | 49,316,327.91 | 58,415,869.51 |
| III Gross profit (“－” for gross loss) | 22,423,915,101.01 | 19,883,054,344.94 |
| Less: Income tax expense | 292,401,940.85 | 265,219,502.86 |
| IV Net profit (“－” for net loss) | 22,131,513,160.16 | 19,617,834,842.08 |
| (I) Net profit from continuing operations (“－” for net loss) | 22,131,513,160.16 | 19,617,834,842.08 |
| (II) Net profit from discontinued operations (“－” for net loss) | ||
| V Other comprehensive income, net of tax | ||
| (I) Other comprehensive income that will not be reclassified to profit or loss | ||
| 1. Changes caused by remeasurements on defined benefit schemes | ||
| 2. Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 3. Changes in the fair value of other debt investments | ||
| 4. Changes in the fair value arising from changes in own credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4. Credit impairment allowances for other debt investments | ||
| 5. Reserve for cash flow hedges |
| 6. Differences arising from the translation of foreign currency-denominated financial statements | ||
| 7. Other | ||
| VI Total comprehensive income | 22,131,513,160.16 | 19,617,834,842.08 |
| VII Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | 2023 | 2022 |
| I Cash flows from operating activities: | ||
| Proceeds from sale of goods and rendering of services | 105,349,992,178.96 | 81,770,582,903.92 |
| Net increase in customer deposits and deposits from other banks and financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, fees and commissions received | ||
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 83,435,000.00 | 72,322,800.00 |
| Cash generated from other operating activities | 2,328,844,302.03 | 2,006,197,288.41 |
| Subtotal of cash generated from operating activities | 107,762,271,480.99 | 83,849,102,992.33 |
| Payments for goods and services | 21,310,361,287.23 | 19,397,297,581.75 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial institutions | ||
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 7,890,206,082.92 | 7,879,082,833.54 |
| Taxes and levies paid | 30,999,125,076.75 | 27,773,048,881.11 |
| Cash used in other operating activities | 5,820,099,125.86 | 4,368,537,434.45 |
| Subtotal of cash used in operating activities | 66,019,791,572.76 | 59,417,966,730.85 |
| Net cash generated from/used in operating activities | 41,742,479,908.23 | 24,431,136,261.48 |
| II Cash flows from investing activities: | ||
| Proceeds from the disposal of investments | ||
| Return on investment | 23,638,368.00 | 23,038,080.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 1,765,989.88 | 46,667,262.99 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 25,404,357.88 | 69,705,342.99 |
| Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 2,957,236,682.34 | 1,780,534,893.52 |
| Payments for the acquisition of investments | 5,625,000.00 | |
| Net increase in pledge loans | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 2,957,236,682.34 | 1,786,159,893.52 |
| Net cash generated from/used in investing activities | -2,931,832,324.46 | -1,716,454,550.53 |
| III Cash flows from financing activities: | ||
| Capital contributions received | 22,618,764.59 | |
| Of which: Capital contributions received by subsidiaries from non-controlling interests | 22,618,764.59 | |
| Borrowings received | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 22,618,764.59 | |
| Repayment of borrowings | ||
| Interest and dividends paid | 15,894,242,592.66 | 12,681,422,089.05 |
| Of which: Dividends paid by subsidiaries to non-controlling interests | 1,214,001,151.69 | 947,321,133.56 |
| Cash used in other financing activities | 428,610,750.02 | 424,009,369.15 |
| Subtotal of cash used in financing activities | 16,322,853,342.68 | 13,105,431,458.20 |
| Net cash generated from/used in financing activities | -16,300,234,578.09 | -13,105,431,458.20 |
| IV Effect of foreign exchange rate changes on cash and cash equivalents | 627,320.96 | 136,266.19 |
| V Net increase in cash and cash equivalents | 22,511,040,326.64 | 9,609,386,518.94 |
| Add: Cash and cash equivalents, beginning of the period | 90,584,643,897.66 | 80,975,257,378.72 |
| VI Cash and cash equivalents, end of the period | 113,095,684,224.30 | 90,584,643,897.66 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | 2023 | 2022 |
| I Cash flows from operating activities: | ||
| Proceeds from sale of goods and rendering of services | ||
| Tax and levy rebates | ||
| Cash generated from other operating activities | 2,102,357,381.43 | 1,463,712,176.86 |
| Subtotal of cash generated from operating activities | 2,102,357,381.43 | 1,463,712,176.86 |
| Payments for goods and services | ||
| Cash paid to and for employees | 149,842,839.64 | 151,676,699.98 |
| Taxes and levies paid | 492,671,245.45 | 46,538,112.01 |
| Cash used in other operating activities | 98,632,120.82 | 264,037,436.73 |
| Subtotal of cash used in operating activities | 741,146,205.91 | 462,252,248.72 |
| Net cash generated from/used in operating activities | 1,361,211,175.52 | 1,001,459,928.14 |
| II Cash flows from investing activities: | ||
| Proceeds from the disposal of investments | ||
| Return on investment | 22,356,680,882.23 | 17,761,634,324.18 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 350,616.31 | 137.61 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 22,357,031,498.54 | 17,761,634,461.79 |
| Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 23,034,247.97 | 11,972,576.93 |
| Payments for the acquisition of investments | 23,541,979.48 | 5,625,000.00 |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 46,576,227.45 | 17,597,576.93 |
| Net cash generated from/used in investing activities | 22,310,455,271.09 | 17,744,036,884.86 |
| III Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings received | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayment of borrowings | ||
| Interest and dividends paid | 14,680,241,440.97 | 11,734,100,955.49 |
| Cash used in other financing activities | 1,979,700.00 | 1,979,700.00 |
| Subtotal of cash used in financing activities | 14,682,221,140.97 | 11,736,080,655.49 |
| Net cash generated from/used in financing activities | -14,682,221,140.97 | -11,736,080,655.49 |
| IV Effect of foreign exchange rate changes on cash and cash equivalents | ||
| V Net increase in cash and cash equivalents | 8,989,445,305.64 | 7,009,416,157.51 |
| Add: Cash and cash equivalents, beginning of the period | 49,975,638,860.17 | 42,966,222,702.66 |
| VI Cash and cash equivalents, end of the period | 58,965,084,165.81 | 49,975,638,860.17 |
7. Consolidated Statements of Changes in Owners’ Equity
2023
Unit: RMB
| Item | 2023 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preference shares | Perpetual bonds | Other | |||||||||||||
| I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 28,432,198,524.98 | 79,028,605,172.04 | 114,025,058,788.17 | 2,659,130,827.92 | 116,684,189,616.09 | ||||||||
| Add: Adjustments for changes in accounting policies | 283,842.40 | 2,554,581.61 | 2,838,424.01 | 2,838,424.01 | |||||||||||
| Adjustments for correction of previous errors | |||||||||||||||
| Other | |||||||||||||||
| II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 28,432,482,367.38 | 79,031,159,753.65 | 114,027,897,212.18 | 2,659,130,827.92 | 116,687,028,040.10 | ||||||||
| III Increase/ decrease in the period (“-” for decrease) | 5,156,071,135.43 | 10,374,272,692.90 | 15,530,343,828.33 | 132,001,318.74 | 15,662,345,147.07 | ||||||||||
| (I) Total comprehensive income | 30,210,585,269.30 | 30,210,585,269.30 | 1,310,192,312.85 | 31,520,777,582.15 | |||||||||||
| (II) Capital increase and reduction by owners | 22,618,764.59 | 22,618,764.59 | |||||||||||||
| 1. Ordinary share increase by owners | 22,618,764.59 | 22,618,764.59 | |||||||||||||
| 2. Capital increase by holders of other equity | |||||||||||||||
| instruments | |||||||||||||||
| 3. Share-based payments recognized in owners’ equity | |||||||||||||||
| 4. Other | |||||||||||||||
| (III) Profit distribution | 5,156,071,135.43 | -19,836,312,576.40 | -14,680,241,440.97 | -1,200,809,758.70 | -15,881,051,199.67 | ||||||||||
| 1. Appropriated to surplus reserves | 5,156,071,135.43 | -5,156,071,135.43 | |||||||||||||
| 2. Appropriated to general reserve | |||||||||||||||
| 3. Distributed to owners (or shareholders) | -14,680,241,440.97 | -14,680,241,440.97 | -1,200,809,758.70 | -15,881,051,199.67 | |||||||||||
| 4. Other | |||||||||||||||
| (IV) Transfers within owners’ equity | |||||||||||||||
| 1. Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 2. Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3. Surplus reserves used to offset loss | |||||||||||||||
| 4. Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Specific reserve | |||||||||||||||
| 1. Increase in the period | |||||||||||||||
| 2. Used in the period |
| (VI) Other | |||||||||||||||
| IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 33,588,553,502.81 | 89,405,432,446.55 | 129,558,241,040.51 | 2,791,132,146.66 | 132,349,373,187.17 |
2022
Unit: RMB
| Item | 2022 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preference shares | Perpetual bonds | Other | |||||||||||||
| I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 23,866,103,395.72 | 68,638,139,859.37 | 99,068,498,346.24 | 2,323,385,298.63 | 101,391,883,644.87 | ||||||||
| Add: Adjustments for changes in accounting policies | 351,617.41 | 3,164,556.82 | 3,516,174.23 | 168,606.73 | 3,684,780.96 | ||||||||||
| Adjustments for correction of previous errors | |||||||||||||||
| Other | |||||||||||||||
| II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 23,866,455,013.13 | 68,641,304,416.19 | 99,072,014,520.47 | 2,323,553,905.36 | 101,395,568,425.83 | ||||||||
| III Increase/ decrease in the period (“-” for decrease) | 4,566,027,354.25 | 10,389,855,337.46 | 14,955,882,691.71 | 335,576,922.56 | 15,291,459,614.27 | ||||||||||
| (I) Total comprehensive income | 26,689,983,647.20 | 26,689,983,647.20 | 1,279,801,928.07 | 27,969,785,575.27 | |||||||||||
| (II) Capital increase and reduction by owners | -21,148,883.78 | -21,148,883.78 | |||||||||||||
| 1. Ordinary share increase by owners | |||||||||||||||
| 2. Capital increase by holders of other equity instruments | |||||||||||||||
| 3. Share-based payments recognized in owners’ equity | |||||||||||||||
| 4. Other | -21,148,883.78 | -21,148,883.78 | |||||||||||||
| (III) Profit distribution | 4,566,027,354.25 | -16,300,128,309.74 | -11,734,100,955.49 | -923,076,121.73 | -12,657,177,077.22 | ||||||||||
| 1. Appropriated to surplus reserves | 4,566,027,354.25 | -4,566,027,354.25 | |||||||||||||
| 2. Appropriated to general reserve | |||||||||||||||
| 3. Distributed to owners (or shareholders) | -11,734,100,955.49 | -11,734,100,955.49 | -923,076,121.73 | -12,657,177,077.22 | |||||||||||
| 4. Other | |||||||||||||||
| (IV) Transfers within owners’ equity | |||||||||||||||
| 1. Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 2. Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3. Surplus reserves used to offset loss | |||||||||||||||
| 4. Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Specific reserve | |||||||||||||||
| 1. Increase in the period | |||||||||||||||
| 2. Used in the period | |||||||||||||||
| (VI) Other | |||||||||||||||
| IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 28,432,482,367.38 | 79,031,159,753.65 | 114,027,897,212.18 | 2,659,130,827.92 | 116,687,028,040.10 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2023
Unit: RMB
| Item | 2023 | |||||||||
| Share capital | Other equity instruments | Capital reserves | Less: | Other | Spec | Surplus reserves | Retained earnings | Othe | Total owners’ equity | |
| Preference shares | Perpetual bonds | Other | Treasury shares | comprehensive income | ific reserve | r | ||||||
| I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 13,295,638,080.20 | 52,952,968,888.03 | 72,812,862,059.38 | |||||||
| Add: Adjustments for changes in accounting policies | -19,442.18 | -174,979.59 | -194,421.77 | |||||||||
| Adjustments for correction of previous errors | ||||||||||||
| Other | ||||||||||||
| II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 13,295,618,638.02 | 52,952,793,908.44 | 72,812,667,637.61 | |||||||
| III Increase/ decrease in the period (“-” for decrease) | 2,213,151,316.02 | 5,238,120,403.17 | 7,451,271,719.19 | |||||||||
| (I) Total comprehensive income | 22,131,513,160.16 | 22,131,513,160.16 | ||||||||||
| (II) Capital increase and reduction by owners | ||||||||||||
| 1. Ordinary share increase by owners | ||||||||||||
| 2. Capital increase by holders of other equity instruments | ||||||||||||
| 3. Share-based payments recognized in owners’ equity | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | 2,213,151,316.02 | -16,893,392,756.99 | -14,680,241,440.97 | |||||||||
| 1. Appropriated to surplus reserves | 2,213,151,316.02 | -2,213,151,316.02 | ||||||||||
| 2. Distributed to owners (or shareholders) | -14,680,241,440.97 | -14,680,241,440.97 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Transfers within owners’ equity | ||||||||||||
| 1. Increase in capital (or share capital) from capital reserves | ||||||||||||
| 2. Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3. Surplus reserves used to offset loss | ||||||||||||
| 4. Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 5. Other comprehensive income transferred to retained earnings |
| 6. Other | ||||||||||||
| (V) Specific reserve | ||||||||||||
| 1. Increase in the period | ||||||||||||
| 2. Used in the period | ||||||||||||
| (VI) Other | ||||||||||||
| IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 15,508,769,954.04 | 58,190,914,311.61 | 80,263,939,356.80 |
2022
Unit: RMB
| Item | 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preference shares | Perpetual bonds | Other | ||||||||||
| I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 11,333,854,390.82 | 47,031,016,639.11 | 64,929,126,121.08 | |||||||
| Add: Adjustments for changes in accounting policies | -19,237.01 | -173,133.05 | -192,370.06 | |||||||||
| Adjustments for correction of previous errors | ||||||||||||
| Other | ||||||||||||
| II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 11,333,835,153.81 | 47,030,843,506.06 | 64,928,933,751.02 | |||||||
| III Increase/ decrease in the period (“-” for decrease) | 1,961,783,484.21 | 5,921,950,402.38 | 7,883,733,886.59 | |||||||||
| (I) Total comprehensive income | 19,617,834,842.08 | 19,617,834,842.08 | ||||||||||
| (II) Capital increase and reduction by owners | ||||||||||||
| 1. Ordinary share increase by owners | ||||||||||||
| 2. Capital increase by holders of other equity instruments | ||||||||||||
| 3. Share-based payments recognized in owners’ equity | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | 1,961,783,484.21 | -13,695,884,439.70 | -11,734,100,955.49 | |||||||||
| 1. Appropriated to surplus reserves | 1,961,783,484.21 | -1,961,783,484.21 | ||||||||||
| 2. Distributed to owners (or shareholders) | -11,734,100,955.49 | -11,734,100,955.49 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Transfers within owners’ equity | ||||||||||||
| 1. Increase in capital (or share capital) from capital reserves | ||||||||||||
| 2. Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3. Surplus reserves used to offset loss | ||||||||||||
| 4. Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 5. Other comprehensive income transferred to retained earnings | ||||||||||||
| 6. Other | ||||||||||||
| (V) Specific reserve | ||||||||||||
| 1. Increase in the period | ||||||||||||
| 2. Used in the period | ||||||||||||
| (VI) Other | ||||||||||||
| IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 13,295,618,638.02 | 52,952,793,908.44 | 72,812,667,637.61 |
III Company Profile
1. Company history
Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company") is a company limited by sharesestablished by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval ofDocument CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company isprincipally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series,with a registered capital of RMB3,881.6080 million and registered address: 150 Minjiang West Road, CuipingDistrict, Yibin City, Sichuan Province, China.The Company issued 80 million common shares (in RMB) on-line by fixed price offering at Shenzhen StockExchange on 27 April 1998. According to the resolution of the extraordinary general meeting of Shareholders inSeptember 1999, the Company, based on the total share capital of 320 million shares on 30 June 1999, transferredcapital reserve to increase share capital, increasing five shares for every ten shares and the total share capital afterthe conversion was changed to 480 million shares. The Company placed 31.2 million common shares (in RMB) tothe original shareholders as approved by the Document ZH.J.G.S.Z. [2001] No. 6 issued by the China SecuritiesRegulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001, theCompany implemented the interim distribution plan 2001 and issued four bonus shares and increased three sharesfor every ten shares by transferring capital reserve to share capital, with 357.84 million bonus shares and sharestransferred from capital reserve in total. The total share capital after the issuance and translation was 869.04million shares. In April 2002, the Company implemented the distribution plan 2001 and issued one bonus shares,increased two shares by transferring capital reserve to share capital, and distributed RMB0.25 (tax inclusive) incash for every ten shares, with 260.712 million bonus shares in total. The total share capital after the issuance andtranslation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan 2002 andincreased two shares for every ten shares by transferring capital reserve to share capital for all shareholders,increasing the share capital by 225.9504 million shares. The total share capital after the translation was1,355.7024 million shares. In April 2004, the Company implemented the distribution plan 2003 and issued eightbonus shares and increased two shares by transferring capital reserve to share capital for every ten shares, with1,355.7024 million bonus shares in total. The total share capital after the issuance and translation was 2,711.4048million shares.
On 31 March 2006, the Company carried out the equity division reform and the shareholding structure afterthe reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the totalshare capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 millionshares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained2,711.4048 million shares.
In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares anddistributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total.The total share capital after the issuance and distribution was 3,795.96672 million shares. On 2 April 2008, sharesfor state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held 1,667.5954 millionshares, taking up 43.93% of the total share capital.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye YibinCo., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders ofWuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the StateCouncil (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as YibinDevelopment Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company toSichuan Yibin Wuliangye Group Co., Ltd. for free on 10 October 2012. After this free transfer of shares, YibinDevelopment Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and wasthe first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% sharesof the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’sGovernment of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to YibinDevelopment Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change ofshares held by both parties in the Company, without changing the controlling shareholder and actual controller ofthe Company.
According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting ofShareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board of Directors,
and annual general meeting of Shareholders 2016 of the Company and as approved by the License ZH.J.X.K.[2017] No. 1910 issued by the China Securities Regulatory Commission, the Company issued 85,641,285 sharesby non-public offering by means of targeted issue on 12 April 2018. The total share capital after the issuance was3,881.608 million shares, including 2128.3714 million shares for state-owned legal person, taking up 54.83% ofthe total share capital, and 1,753.2366 million shares for other shareholders, taking up 45.17% of the total sharecapital.According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd. (Y.G.Z.W.[2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission of the People’sGovernment of Yibin City, the transfer was approved in principle. On 24 August 2020, Yibin DevelopmentHolding Group Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan Yibin WuliangyeGroup Co., Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd. still held 34.43%shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the Company;Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343 shares), wasthe second majority shareholder of the Company. This transfer of shares did not change the controllingshareholder and actual controller of the Company.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage production industry and its business scope is: Production andoperation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packagingproducts). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.
3. Approval of financial statements
These financial statements have been reviewed and approved by General Meeting of Shareholders of theCompany on 24 April 2024, and will be submitted to the general meeting for review according to the Articles ofAssociation.
IV Preparation Basis for Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and the recognition andmeasurement are made at actual transactions and matters in accordance with the Accounting Standards forBusiness Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standardsfor Business Enterprise, Guidelines for Application of Accounting Standards for Business Enterprises,Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter referredto as “Accounting Standards for Business Enterprise”), combining with the Preparation Rules for InformationDisclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports(2023 revision) issued by China Securities Regulatory Commission on this basis.
2. Going concern
The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,and there is no major event affecting the ability of going concern.
V Significant Accounting Policies and Accounting Estimates
The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
Specific accounting policies and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimates formulated bythe Company according to the actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of the AccountingStandards for Business Enterprises and truly and completely reflect the Company's financial position, operatingresults, cash flows and other relevant information.
2. Accounting period
From 1 January to 31 December of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping base currency
RMB is used as the bookkeeping base currency and reporting currency of the Company.
5. Methods for determining materiality standards and selection criteria:
? Applicable □ Not applicable
| Item | Significance standard |
| Significant receivables withdrawal of bad debt provision separately accrued | The provision separately accrued amount accounts for over 10% of the total bad debt provision for various receivables and exceeds RMB40 million. |
| Significant bad debt provision recovered or reversed in accounts receivables | The separately accrued recovery or reversal amount accounts for over 10% of the total receivables and exceeds RMB40 million. |
| Write-off of significant accounts receivable | The separately accrued write-off amount accounts for over 10% of the total bad debt provision for various receivables and exceeds RMB40 million. |
| Significant construction in progress | The separately accrued investment budget for construction in progress exceeds RMB1 billion. |
| Significant externally purchased R&D projects | Exceeds 10% of the total budget for existing R&D projects, with the amount of externally purchased R&D projects exceeding RMB40 million. |
| Significant capitalised R&D projects |
Exceeds 10% of the total budget for existing R&D projects, with the capitalisationamount for the current period exceeding RMB40 million.
| Significant prepayments, accounts payable, and other accounts payable | Accounts aged over 1 year account for over 10% of the corresponding items in the consolidated financial statements and exceed RMB1 billion. |
| Significant advances received and contract liabilities | Accounts aged over 1 year account for over 10% of the corresponding items in the consolidated financial statements and exceed RMB1 billion. |
| Significant investment projects | Individual investment cash flows account for over 10% of the total cash flows in or out of investment activities, exceeding RMB10 billion. |
| Significant non-wholly-owned subsidiary | Minority shareholders hold 5% or more equity, with total assets, net assets, operating income, and net profit accounting for over 10% of the corresponding items in the consolidated financial statements. |
| Significant joint ventures or associated enterprises | The long-term equity investment amount accounts for over 1% of the total assets in the consolidated financial statements. |
6. Accounting methods for business combinations involving enterprises under and not under the commoncontrol
(1) Business combination involving enterprises under the common control
The assets and liabilities acquired by the combining party through business combination involvingenterprises under the common control are measured at the share of owners' equity of the combined party in thecarrying value on consolidated financial statements of the final controlling party on the combination date. Thedifference between the carrying value of the net assets obtained by the combining party and the carrying value ofconsideration paid for the combination (or total par value of the shares issued) is adjusted against share premiumin the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall beadjusted. All the direct costs incurred by the combining party for the business combination shall be included incurrent profit/loss when incurred.
(2) Business combination involving enterprises not under the common control
In case of business combination involving enterprises not under the common control, the combination costsshall be the fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on thedate of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the common control achieved through step-by-step implementation of multiple transactions, related accounting treatment shall be carried out by distinguishingindividual financial statements from consolidated financial statements:
a) In the individual financial statements, the sum of carrying value of the equity investment held in theacquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall be taken asthe initial cost of such investment; where the equity held in the acquiree prior to the date of acquisition involvesother comprehensive income, the other comprehensive income related to such investment shall be transferred tocurrent return on investment.b) In the consolidated financial statements, the equity held in the acquiree prior to the date of acquisitionshall be re-measured at the fair value of such equity on the date of acquisition, and the difference between its fairvalue and its carrying value shall be included in the current return on investment; where the equity held in theacquiree prior to the date of acquisition involves other comprehensive income, the other comprehensive income
related to such investment shall be transferred to current return on investment on the date of acquisition.The intermediary expenses such audit, legal service, evaluation and consultation and other administrativeexpenses incurred by the acquirer for the business combination shall be included in current profit/loss; thetransaction expenses for issuing equity securities or debt securities by the acquirer as consideration of thecombination shall be included in the initial recognition amount of the equity securities or debt securities.Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the businesscombination involving enterprises not under the common control shall be measured at the fair value on the date ofacquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's netidentifiable assets obtained in the combination, the difference shall be recognized as goodwill. Where thecombination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assetsobtained in the combination, the acquirer shall first recheck the fair values of the acquiree's identifiable assets,liabilities and contingent liabilities obtained in the combination and the combination cost. Where the combinationcost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assets obtained in thecombination, the difference shall be included in the current profit/loss.
7. Judgement criteria for control and methods for preparing consolidated financial statements
(1) Judgement criteria for control
Control means that an investor has the power over the invested company, gets variable return byparticipating in related activities of the invested company and has the ability to influence the amount of the returnby its power over the invested company. The Company will judge whether these entities have been controlled bythe investee based on its comprehensive consideration of relevant facts and circumstances. Should any changes insuch facts and circumstances alter the elements defining control, a reassessment is promptly conducted. Relevantfacts and circumstances mainly include: a) the purpose of the investee's establishment; b) the investee's activitiesand how decisions regarding them are made; c) whether the rights held by the investor currently enable it todominate the investee's activities; d) whether the investor receives variable returns from participating in theinvestee's activities; e) whether the investor has the ability to use its power over the investee to affect the amountof its returns; f) the relationship between the investor and other parties.
(2) Methods for preparing consolidated financial statements
The scope of consolidated financial statements is determined on the basis of control, including the Companyand the subsidiaries under its control.
The Company as the parent shall prepare the consolidated financial statements based on its financialstatements and those of its subsidiaries and according to other relevant information. The share of the subsidiariesin current profit/loss attributable to non-controlling interests shall be presented in the consolidated incomestatement as "net profit attributable to non-controlling interests" under the net profit. The share in currentcomprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented inthe consolidated income statement as "total comprehensive income attributable to non-controlling interests" underthe total other comprehensive income.
For subsidiaries and businesses of the Company as the parent added by business combination involvingenterprises under the common control during the Reporting Period, the revenue, expenses, and profits of suchsubsidiaries and businesses from the beginning to the end of the period of business combination shall be recordedinto the consolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to theend of the year of business combination shall be recorded into the consolidated cash flow statement, and relevantitems of the statements shall be adjusted through comparison of the statements, as if the reporting entity after thecombination had been existing from control of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not under the commoncontrol or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the date ofacquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows ofsuch subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into theconsolidated cash flow statement.
When the Company as the parent disposes subsidiaries and businesses during the Reporting Period, therevenue, expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to thedate of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiaryand business from the beginning of the Reporting Period to the date of disposal shall be recorded into theconsolidated cash flow statement.
In the consolidated financial statements, when the Company as the parent acquires the equity held by theminority shareholders in the subsidiary, the difference between the long-term equity investment obtained byacquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from
the date of acquisition or combination according to the new increase in shareholding proportion shall be adjustedagainst the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writingdown, the retained earnings shall be adjusted.
8. Classification of joint arrangements and accounting methods for joint operationsJoint arrangements include joint operations and joint ventures.Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns itsrelevant assets and bears its relevant liabilities.The Company shall recognize the following items related to share of interests and treat them according torelevant Accounting Standards for Business Enterprises:
(1) Recognize assets solely held by the Company, and those jointly owned assets according to theCompany's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities according tothe Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint operation;
(4) Recognize revenue from sales in the joint operation according to the Company's share;
(5) Recognize expenses solely incurred, and those incurred for joint operation according to the Company'sshare.
Refer to the Note "long-term equity investment" for the accounting policy of the Company for investmentsin joint venture.
9. Recognition criteria of cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cashequivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquidinvestments that are readily convertible into known amounts of cash and that are subject to an insignificant risk ofchange in value.
10. Foreign currency transaction and foreign currency statement translation
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping base currency at the benchmarkexchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by thePeople's Bank of China, the same below) published by the People's Bank of China on the transaction date; at theend of the period, foreign currency monetary items shall be translated at the ending spot exchange rate; non-monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rateprevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall betranslated at the spot exchange rate prevailing on the date of determining fair value. The difference arising fromtranslation shall be included in the construction cost of relevant fixed assets if in connection with acquisition andconstruction of the fixed assets which has not yet reached its intended condition for use; shall be included inadministrative expenses if incurring during the preparation period and not in connection with acquisition andconstruction of fixed assets; and shall be included in current finance costs if incurring during the production andoperation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date; allitems of owners' equity, except for retained earnings, shall be translated at the spot exchange rate at the time ofincurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rate on the dateof transaction. Differences arising from the translation of foreign currency-denominated financial statements shallbe separately presented under the owners' equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spotexchange rate on the date of incurrence of the cash flows.
11. Financial instruments
Financial instruments refer to any contract that gives rise to a financial asset of a party and financialliabilities or equity instruments of other parties.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a party of thefinancial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) The contractual
right to charge the cash flow of the financial assets is terminated; 2) The financial assets have been transferred andthe Company has transferred almost all risks and remuneration of the financial assets ownership to the transferee;and 3) The financial assets have been transferred and the Company does neither transfer nor retain almost all risksand remuneration of the financial assets ownership but gives up the control over the financial assets.The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or partthereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize the assets tobe received and the liabilities to be assumed on the trading day, or derecognize the assets sold on the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristicsof financial assets, the Company classified financial assets into the following categories: Financial assetsmeasured at the amortized cost, financial assets measured at fair value through other comprehensive income, andfinancial assets measured at fair value through profit and loss of the current period.
1) Initial measurement of financial assets
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets at fair valuethrough profit or loss, relevant transaction expenses shall be directly included in current profit or loss; for othercategories of financial assets, relevant transaction expenses shall be included in the initial recognition amount. Fornotes receivable and accounts receivable arising from sales of goods or provision of service which do not includeor consider the compositions of major assets, the Company shall take the consideration expected to be received asthe initial recognition amount.
2) Subsequent measurement of financial assets
a) Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining contractual cashflow, and the characteristics of contractual cash flow of such financial assets are basically the same as basicborrowing arrangement, namely the cash flow arising on a specific date, which are solely payments of principaland interest on the principal amount outstanding. The Company subsequently measures such financial assets atamortized costs by effective interest method. The gain or loss from their amortization, impairment andderecognition shall be included in current profit or loss.
b) Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receiving contractual cashflow as well as selling, and the characteristics of contractual cash flow of such financial assets are basically thesame as basic borrowing arrangement. Such financial assets shall be measured at fair value, with the changesincluded in other comprehensive income, but the impairment loss, exchange gain or loss and interest incomecalculated by effective interest method shall be included in current profit or loss. The accumulative gains or losseswhich are previously included in other comprehensive income shall be transferred out from other comprehensiveincome and included in current profit or loss upon derecognition.
c) Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instruments measured atamortized cost and debt instruments at fair value through other comprehensive income as financial assets at fairvalue through profit or loss. For eliminating or significantly reducing accounting mismatch upon initialrecognition, financial assets may be designated as financial assets at fair value through profit or loss. Suchfinancial assets shall be subsequently measured at fair value with all changes in fair value included in currentprofit or loss. Only when the Company changes the business model of managing financial assets, shall relevantfinancial assets being affected be reclassified.
d) Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financial assets at fairvalue through other comprehensive income upon initial recognition. The Company includes relevant dividendsincome in current profit or loss, with changes in fair value included in other comprehensive income. Theaccumulative gains or losses which are previously included in other comprehensive income shall be transferredfrom other comprehensive income to retained earnings instead of current profit or loss upon derecognition of suchfinancial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownership to thetransferee, the financial assets shall be derecognized; if the Company retains almost all risks and remuneration ofthe financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financial assetsownership but gives up the control over the financial assets, such financial assets shall be derecognized and the
rights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; ifcontrol over the financial assets is retained, relevant financial assets shall be continuously recognized according tothe extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost and financialliabilities at fair value through profit or loss upon initial recognition.
1) Initial measurement of financial liabilities
Any financial liability meeting any of the following conditions can be designated upon initial measurementas the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantlyreduce accounting mismatch; b) According to the risk management or investment strategy of the Company asstated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets andfinancial liabilities is managed and evaluated on the basis of fair value, and reported to the key management onthe basis of this inside the Company; c) This financial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. For financialliabilities at fair value through profit or loss, relevant transaction expenses shall be directly included in currentprofit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall be included inthe initial recognition amount.
2) Subsequent measurement of financial liabilities
a) Financial liabilities measured at amortized cost: The Company subsequently measures such financialliabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortizationshall be included in current profit/loss.
b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value throughprofit or loss upon initial recognition.
Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities) shallbe subsequently measured at fair value (except for those concerning hedge accounting) with changes in fair valueincluded in current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fair valuearising from change of the credit risk of the Company shall be included in other comprehensive income;accumulative gain or loss previously included in other comprehensive income shall be transferred from othercomprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.If previous accounting treatment may cause or expand the accounting mismatch in profit or loss, all gains orlosses of such financial liabilities (including the amount affected by change in credit risk of the Company) shall beincluded in current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities shall bepresented as net amount after offset in the balance sheet: The Company has the legal right to offset the recognizedamount and may exercise such legal right currently; the Company plans to settle with net amount or realize thefinancial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in the activemarket. For financial instruments without active market, the fair value shall be determined by valuation technique.The Company shall adopt the valuation technique which is applicable in current situation and supported bysufficient available data and other information for valuation. The Company shall choose inputs which areconsistent with the characteristics of assets or liabilities considered by the market participant in the transaction ofrelevant assets and liabilities, and give priority to relevant observable inputs. If it is impossible or impractical toobtain relevant observable inputs, the Company may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized cost,investments in debt instruments at fair value through other comprehensive income, contract asset, leasereceivables, loan commitment and financial guarantee contracts based on the expected credit loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by therisk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company atthe original effective interest rate and receivable according to the contract and all expected cash flows received,namely the present value of all cash shortage. Among which, the financial assets purchased or originated that havesuffered from credit impairment shall be discounted at the effective interest rate of the financial assets after creditadjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expected lifetimeof financial instruments due to defaults.12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (if theexpected lifetime of the financial instrument is less than 12 months, the expected lifetime) after the balance sheetdate due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.On the balance sheet date, the Company measured the expected credit loss of financial instruments atdifferent stages, respectively. If the credit risk of a financial instrument has not increased significantly since theinitial recognition, the financial instrument is in Stage 1, and the Company measures the provisions for lossaccording to the 12-month expected credit loss; if the credit risk of a financial instrument has increasedsignificantly but the credit impairment has not yet occurred since the initial recognition, the financial instrument isin Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses; ifthe financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and theCompany measures the provisions for loss according to the lifetime expected credit loss.For a financial instrument with low credit risk on the balance sheet date, the Company assumes that thecredit risk has not increased significantly since the initial recognition, and the Company measures the provisionsfor loss according to the 12-month expected credit loss.For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate theinterest income according to the carrying amount and effective interest rate before deducting the provisions forimpairment. For financial instruments in Stage 3, the Company shall calculate the interest income according to theamortized cost and effective interest rate of the carrying amount after withdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is major financing, the Companyshall always consider all reasonable and sound information, including prospective information, to estimateexpected credit loss of the above accounts receivable individually or in combination and adopt the simplifiedmodel of expected credit loss. The Company shall always measure the provisions for loss according to the lifetimeexpected credit loss.
1) Accounts receivable
a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurredin an account receivable, impairment test shall be carried out separately on it, such as accounts receivable indispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor islikely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debtprovisions shall be made based on the balance between the present value of future cash flows and its carryingvalue.
b) If there is no objective evidence indicating that impairment or the credit loss of a single financial assetcannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups bycharacteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis fordetermining the combinations is as below:
| Item | Determination Basis |
| Bank acceptance bill group | Bank acceptance bills |
| Letter of credit group | Letters of credit |
| Commercial acceptance bills group | Commercial acceptance bills |
| Accounts receivable group | Receivables from related parties |
| Accounts receivable group | External customer |
| Other receivables group | Receivables from and payables to related parties |
| Other receivables group | Cash float, deposits and other receivables with low credit risk |
| Other receivables group | Other amounts |
For accounts receivable divided into risk groups, the Company, with reference to historical experience incredit loss and based on current situation and forecast of future economic situation, shall prepare a comparisontable between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expectedcredit losses. For other groups, the Company, with reference to historical experience in credit loss and based oncurrent situation and forecast of future economic situation, shall calculate the expected credit losses according tothe exposure at default and the 12-month or lifetime expected credit loss rate.
2) Debt investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected credit lossaccording to the nature of investment, types of counterparty and risk exposure, exposure at default and the 12-month or lifetime expected credit loss rate.The Company shall include the provision or reversal for loss made or included in current profit or loss. Forinvestment in debts instruments at fair value through other comprehensive income, the Company shall adjust othercomprehensive income when the impairment loss or gain is included in current profit or loss; for financial assetsmeasured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.
12. Contract assets and contract liabilities
Under the contract between the Company and the customer, the Company shall be entitled to receive thecontract price for the goods transferred to the customer and for the related services provided, while at the sametime assuming the performance obligation to transfer the goods or services to the customer. When the customerhas actually paid the contract consideration or the enterprise has transferred goods or services to the customerbefore such consideration is due and payable, the right to receive the consideration for the transferred goods orservices should be presented as a contract asset and recognized as an accounts receivable when the unconditionalright to receive is obtained; conversely, the Company's obligation to transfer goods or services to the customer forthe consideration received or receivable from the customer should be presented as a contract liability. Anycontract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods orprovide services to the customer. The Company presents contract asset and contract liability under the samecontract on a net basis.
13. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finished products,goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost and priced byweighted average method when sent out; paper, printing ink, and auxiliary materials for producing printed mattersare measured at planned cost when purchased and sent out, with the difference between actual cost and plannedcost included in “materials cost difference”. The difference to be amortized by the materials sent out shall becalculated by materials cost difference by category at the end of the month, so as to adjust cost of the materialssent out into actual cost; goods in process, self-manufactured semi-finished products, and finished products aremeasured at actual cost and priced by weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of inventory fallingprice reserves
On the balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. Ifcost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shallbe made and included in current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion, estimatedselling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidence obtained andafter taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheetevents. Materials held for use in the production of inventories are measured at cost if the net realizable value ofthe finished products in which they will be incorporated is higher than their cost; decline in the price of materialsindicates that the cost of the finished products exceeds their net realizable value, the materials are measured at netrealizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on thecontract price. If the quantities held by the Company is higher than the quantities of inventories specified in salescontracts, the net realizable value of the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory is lower thanthe cost.
1) Market price of the inventory declines continuously and there is no hope of rising in the foreseeablefuture.
2) The cost of products produced by the Company with such raw materials is higher than the selling price ofthe product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products, andthe market price of the raw material is lower than the book cost.
4) The market price declines gradually due to obsolete goods or service provided by the Company, orchange of market demands due to change of consumer preference.
5) Other circumstances which are sufficient to prove substantial impairment of the inventory.The Company shall usually determine the falling price reserves of inventories on an item-by-item basis. Forinventories in large amount and low unit price, provision for inventory falling price reserves may be made bycategory of the inventories. For item of inventories relating to a product line that is produced and marketed in thesame geographical area, have the same or similar end uses or purposes, and cannot be practically measuredseparately from other items, provision for inventory falling price reserves may be made on an aggregate basis.The Company shall determine the net realizable value of inventories on the balance sheet date. When factorscausing written-down of the inventory value disappear, the amount written down shall be recovered and will bereversed from the provided inventory falling price reserves. The amount reversed will be included in current profitor loss.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
14. Assets held for sale
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions asassets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on thepractice of selling such assets or disposal groups in similar transactions; 2) sales are highly likely to occur, that is,the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and thesale is expected to be completed within one year.Non-current assets or disposal groups specifically obtained by the Company for resale shall be classified bythe Company as held-for-sale on the acquisition date when they meet the stipulated conditions of “expected to besold within one year” on the acquisition date, and may well satisfy the category of held-for-sale within a shorttime (which is usually three months).
If the transaction between non-related parties fails to be completed within one year due to one of thefollowing circumstances which is over the control of the Company, and the Company still promises to sell thenon-current assets or disposal groups, the Company should continue to classify the non-current assets or disposalgroups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of thesale. The Company has already acted on these conditions in a timely manner and it is expected to be able tosuccessfully deal with the conditions that led to the extension of the sale within one year after the conditions wereset; 2) due to unusual circumstances, the non-current assets or disposal groups held-for-sale failed to be soldwithin one year. In the first year, the Company has taken necessary measures for these new conditions and theassets or disposal groups meet the conditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups held for sale onthe balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, thecarrying value will be written down to the net amount of fair value minus the sale costs. The amount written downwill be recognized as asset impairment loss and included in current profit and loss, and provision for impairmentof assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be measuredat the lower of net amount of initial measurement amount minus sales cost and that of fair value minus sellingexpenses, assuming they were not classified as held-for-sale during initial measurement. Except for non-currentassets or disposal groups acquired from business combination, the difference arising from taking the net amountof fair value minus sales cost as initial measurement amount of the non-current assets or disposal groups shall beincluded in current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the carrying valueof goodwill of the disposal groups shall be offset first, and then the carrying value of various non-current assets inthe disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation oramortization. Interest and other expenses of liabilities in the disposal group held for sale shall still be recognized.
2) Accounting treatment for reversal of asset impairment loss
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheetdate minus the sale costs increases, the previous written-down amount will be restored and reversed from the assetimpairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall be included
in the current profit or loss. The asset impairment loss recognized before being classified as held-for-sale shall notbe reversed.If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet dateminus the sale costs increases, the previous written-down amount will be restored and reversed from the assetimpairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversedamount shall be included in the current profit or loss. The carrying value of goodwill which had been writtendown and the asset impairment loss recognized before non-current assets being classified as held-for-sale shall notbe reversed.For the recognized amount of asset impairment loss of the disposal groups held for sale which is reservedsubsequently, the carrying value shall be increased according to the proportion of carrying value of various non-current assets (except for goodwill) in the disposal groups.
3) Accounting treatment for assets no longer classified as held-for-sale and derecognitionWhen a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current asset isremoved from the disposal group held for sale due to failure in meeting the classification conditions for thecategory of held-for-sale, it will be measured by one of the followings, whichever is lower: a) Amount afteradjusting the carrying value before being classified as held for sale according to the depreciation, amortization orimpairment that would have been recognized under the assumption that it was not classified as held for sale; b) therecoverable amount.The gain or loss not yet recognized shall be included in current profit or loss when recognizing the non-current assets or disposal groups held for sale.
15. Long-term equity investments
(1) Determination of initial investment cost
a) Long-term equity investment from business combination
1) For the long-term equity investment in subsidiaries acquired through business combination involvingenterprises under the common control, the share of the carrying value of the owners' equity of the combined partyin the ultimate controller's consolidated financial statements on the date of combination shall be taken as the initialinvestment cost of the long-term equity investment. The share premium of the capital reserve shall be adjustedwith the difference between the initial investment cost of the long-term equity investment and the carrying valueof the consideration paid. If the share premium of the capital reserve is insufficient for writing down, the retainedearnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinations involvingenterprises not under the common control, initial investment cost of the investment shall be the fair value of theassets paid, liabilities incurred or assumed and equity securities issued by the Company in exchange for controlover the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired throughbusiness combination involving enterprises not under the common control implemented by multiple transactions,the initial investment cost shall be the sum of the carrying value of equity investment held by the Company in theacquiree before the date of acquisition and the cost of new investment on the date of acquisition.
b) For long-term equity investment acquired by cash payment, the initial investment cost shall be thepurchase price actually paid. The initial investment cost includes fees, taxes and other necessary expenses directlyrelated to acquire the long-term equity investment.
c) For long-term equity investment acquired by issuing equity securities, the initial investment cost of long-term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equitysecurities.
d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetaryassets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-monetaryassets has commercial nature and the fair value of the assets received or surrendered may be reliably measured,unless there is conclusive evidence providing that fair value of the assets received is more reliable. For exchangeof non-monetary assets not meeting the above conditions, the initial investment cost shall be the carrying value ofthe assets surrendered and relevant taxes payable.
e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall berecognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equityinvestment calculated by cost method shall be priced at the initial investment cost. The cost of long-term equityinvestment shall be adjusted when the investment is added or recovered. The cash dividends or profits declared tobe distributed by the invested company should be recognized as current return on investment.
The long-term equity investment in associates and joint ventures is accounted by the equity method.If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets of theinvested company gained from the investment, the initial cost of long-term equity investment shall not be adjusted.If the initial investment cost is smaller than the fair value of identifiable net assets of the invested company gainedfrom the investment, the difference shall be included in current profit or loss, and the cost of long-term equityinvestments shall be adjusted.After the Company obtains a long-term equity investment, it shall, in accordance with the share of the netprofits and other comprehensive income of the invested company to be enjoyed or shared, recognize the return oninvestment and other comprehensive income respectively, and adjust the carrying value of the long-term equityinvestment. The Company shall, in accordance with the share in the profits or cash dividends declared anddistributed by the invested company, decrease the carrying value of the long-term equity investment accordingly.As for other changes in owners' equity except for the net profit and loss, other comprehensive income andprofit distribution of the invested company, the Company shall adjust the carrying value of the long-term equityinvestment and include it into the owners' equity. When the share of the net profit or loss of the invested companyis recognized, the net profit of the invested company shall be adjusted and recognized according to the fair valueof the net identifiable assets of the invested company when the investment is made.For the transactions between the Company and associates and joint ventures, the unrealized gains and lossesof the internal transactions shall be offset by the proportion attributable to the Company, and the return oninvestment is recognized accordingly. Unrecorded internal transaction losses incurred between the Company andthe invested company shall be recognized in full if they fell under asset impairment loss.The Company shall recognize the net losses of the invested company until the carrying value of the long-term equity investment and other long-term rights and interests which substantially form the net investment madeto the invested company are reduced to zero, unless the Company has the obligation to undertake extra losses. Ifthe invested company realizes a net profit in the subsequent period, the Company shall restore the recognition ofits share in profits after its share in profits offsets the share in unrecognized losses.
If the accounting policy and accounting period adopted by the invested company are inconsistent with thoseadopted by the Company, financial statements of the invested company shall be adjusted and return on investmentand other comprehensive income shall be recognized according to the accounting policy and accounting period ofthe Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the carrying value and the actual price atwhich the investment is obtained shall be included in current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment originallyincluded in other comprehensive income shall be accounted for on the same basis as the invested company's directdisposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result of changes inother owners' equity other than net profit or loss, other comprehensive income, and profit distribution of theinvested company is carried forward proportionally into current profit or loss, except for other comprehensiveincome arising from changes due to remeasurement of net liabilities or net assets of the defined benefit plan.
In case of loss of common control or significant influence on the invested company due to disposal of part ofthe equity investments, residual equity will be accounted by the recognition and measurement criterion forfinancial instruments. The difference between the fair value on the date of losing common control or significantinfluence and the carrying value shall be included in current profit or loss. Other comprehensive incomerecognized due to accounting of the original equity investment by equity method shall be accounted for on thesame basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping usingequity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profitor loss, other comprehensive income and profit distribution of the invested company will all be carried forwardinto current profit or loss when stop using equity method.
If the Company disposes of part of the equity investment and loses control over the invested company, and ifthe remaining equity after disposal can implement joint control or exert significant influence on the investedcompany, it shall be accounted for using the equity method when the individual financial statements are prepared,and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method sinceacquired; if the remaining equity after disposal cannot implement joint control or exert significant influence on theinvested company, it shall be subject to accounting treatment in accordance with the relevant provisions of thecriteria for recognition and measurement of financial instruments. The difference between the fair value and thecarrying value on the date of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such as additionalinvestment, the remaining equities after the disposal shall be calculated based on the cost method or equity
method in preparing the individual financial statements, and other comprehensive income and other owners'equity recognized because of the equity method adopted for the calculation of the equity investment held prior tothe date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall bechanged to be accounted in accordance with the recognition and measurement criterion for financial instruments,other comprehensive income and other owners' equity shall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested companyCommon control means common control over an arrangement according to relevant provisions, and thedecision-making for relevant activities of such arrangement needs unanimous agreement of all participants sharingthe control.
Significant influence means having the power to participate in decision-making of the financial andoperating policies of the invested company, but not the power to control or jointly control the formulation of thesepolicies together with other parties.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services, renting oroperation and management and with service life of more than one year and high unit value.Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and otherexpenditures incurred before and for making the fixed assets reach its intended condition for use directlyattributable to such assets.Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and formaking the fixed assets reach its intended condition for use.Book value of fixed assets invested by investors shall be the value recognized by the investors.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting therecognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the recognitionconditions for fixed assets.
(2) Depreciation method
| Category | Depreciation Method | Depreciation Life | Residual Rate | Yearly Depreciation Rate |
| Tenements and Buildings | Straight-line method | 25-30 years | 3%-5% | 3.17-3.88% |
| General equipment | Straight-line method | 10-12 years | 3%-5% | 7.92-9.70% |
| Specialised equipment | Straight-line method | eight years | 3%-5% | 11.18-12.13% |
| Transport equipment | Straight-line method | six years | 3%-5% | 15.83-16.17% |
| Other equipment | Straight-line method | six years | 3%-5% | 15.83-16.17% |
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-linemethod (the straight-line depreciation) from the second month after they reach their intended serviceablecondition.
17. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary expenditures incurredbefore the assets reach its intended condition for use.
(2) Standard and timing for transferring construction in progress to fixed assets
From the date when the construction in progress reaches the predetermined usable state, based on factorssuch as the project budget, cost, or actual cost, it is transferred to fixed assets based on the estimated value anddepreciated according to the Company's fixed asset depreciation policy. Adjustment shall be made to theoriginally and provisionally estimated value based on the actual cost after the completion settlement is handled,but depreciation already provided shall not be adjusted.
18. Borrowing costs
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition andconstruction or production of fixed assets, investment properties and inventories meeting the conditions ofcapitalization period and capitalization amount should be capitalized and included in the cost of such assets; otherinterest of borrowings, and amortization of discounts or premiums shall be included in expenses in current period.The exchange differences incurred from special foreign currency borrowings for acquisition and construction or
production of fixed assets and investment properties shall be capitalized and included in the cost of such assets ifit is within the capitalization period. Auxiliary expenses for special borrowings, if incurred before the fixed assetsacquired or constructed reach the intended condition for use, shall be capitalized at the time of occurrence; otherauxiliary expenses shall be recognized as expenses in current period and included in current profit or loss.
(2) Capitalization period of borrowing costs:
a) Commencement of capitalization: Capitalization of borrowing interest, amortization of discount orpremium, and exchange differences shall be commenced when all the following conditions are met.
1) Asset expenditure has already occurred.
2) Borrowing costs have already occurred.
3) Acquisition and construction activities necessary to bring the assets to the intended condition for use havealready begun.
b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interruptedabnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shallbe suspended and the borrowing costs shall be recognized as current expenses until recommencement of theacquisition and construction of the asset.
c) Termination of capitalization: When the fixed assets acquired and constructed reach the intendedcondition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the amount ofinterest expenses actually incurred in the current period less the interest income of the borrowings unused anddeposited in bank or the amount of return on investment from temporary investment. Interest of generalborrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements ofthe excess of accumulated asset disbursements over the special borrowings by the capitalization rate of usedgeneral borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
19. Intangible assets
(1) Service life and the basis for its determination, estimation, amortisation methods or review procedures
Externally acquired intangible assets shall be measured at the actual cost when acquired and averagelyamortized during the expected service life since the month when the intangible assets is acquired; book value ofthe self-developed intangible assets shall be the sum of the expenditures during the research and developmentstage of internal research and development projects of the Company which are eligible for capitalization and theexpenditures incurred before reaching the intended condition for use, and be averagely amortized over theexpected service life since the month in which the intangible asset is ready for use.
Service life of intangible assets shall be analyzed and determined when acquired. Intangible assets withlimited service life shall be amortized over period during which they may bring economic interests; if the periodduring which the intangible assets may bring economic benefit to the enterprise is unforeseeable, such intangibleassets shall be considered as intangible assets with uncertain service life and shall not be amortized.
Impairment test: At the end of each year, the Company shall recheck the service life and amortizationmethod of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment testevery year whether there is any indication of impairment.
(2) Scope of R&D expenditures and related accounting treatment
The scope of R&D expenditures includes staff salaries for R&D personnel, direct input costs, depreciationand amortisation expenses, and other expenses.
The expenditures of the Company’s internal research and development projects are divided into researchphase expenditures and development phase expenditures.
Research phase expenditures shall be included in current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets only when meetingall of the following conditions, otherwise shall be included in current profit or loss when incurred:
a) It is technically feasible to complete this intangible assets so that it can be used or sold.
b) The Company has the intention to complete the intangible assets and use or sell them.
c) The way in which intangible assets generate economic benefits, including the ability to prove that theproducts produced using the intangible assets exist in the market or the intangible assets themselves exist in themarket, and the intangible assets will be used internally, can prove their usefulness; sufficient technical, financialresources and other resources support to complete the development of the intangible asset and the ability to use orsell the intangible asset; the expenditure attributable to the development phase of the intangible asset can be
reliably measured.
20. Long-term asset impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress,intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, animpairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than itscarrying value according to the test, provision for impairment will be made at the difference and included inimpairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting thedisposal expenses and the present value of estimated future cash flow of the asset. The provision for impairmentof assets is calculated and made on an individual basis. If it is difficult for the Company to estimate therecoverable amount of the individual asset, the recoverable amount of an asset group, to which the said assetbelongs, shall be determined. Asset group is the smallest asset group that can independently generate cash inflows.
For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall becarried out in combination with the relevant asset group or combination of asset group.
The carrying value of goodwill caused by business combination is amortized to relevant asset groups with areasonable method from the date of acquisition when the Company carries out impairment test on goodwill; oramortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. Whenthe carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall beevenly amortized according to the proportion of the fair value of each assets group or combination of assetsgroups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair valuecannot be reliably measured, it should be amortized according to the proportion of the carrying value of each assetgroup or combination of assets groups in the total carrying value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups containinggoodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, theCompany shall first conduct an impairment test on the assets groups or combinations of assets groups notcontaining goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognizethe corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups orcombinations of assets groups containing goodwill, and compare the carrying value of these assets groups orcombinations of assets groups (including the carrying value of the goodwill apportioned thereto) with therecoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groupsis lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.
21. Long-term prepaid expense
Long-term prepaid expense is recorded according to the actual amount incurred and amortized over thebenefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expenseitem cannot benefit a later accounting period, the amortized value of the item that has not been amortized shall betransferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of fixedassets under operating lease shall be amortized averagely within the benefit period.
22. Employee benefits
(1) Accounting treatment of short-term remuneration
Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within 12months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-term remuneration isrecognized as liabilities and included in current profit or loss or costs of relevant assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the enterprise afterretirement from or termination of the labor relation with the enterprise in exchange for the service provided by theemployee. Post-employment benefits are divided into two types: Defined contribution plans and defined benefitplans.
a) Defined contribution plan: Contribution which shall be made by the Company separately on the balancesheet date in exchange for the service provided by the employee during the accounting period shall be recognizedas payroll liabilities and included in current profit or loss or relevant asset cost.
b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, thebenefit obligations arising from the defined benefit plan shall be attributable to the period in which the employeeprovides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of
the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income andshall not be reversed to profit or loss in subsequent accounting periods.
(3) Accounting treatment of dismissal benefits
Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of thelabor contract with the employee prior to expiration, or encouraging the employee to accept downsizingvoluntarily.
If the enterprise provides dismissal benefits, payroll liabilities arising from dismissal benefits shall berecognized and included in current profit or loss on the earlier date of:
a) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by theplan or layoff proposal due to termination of the labor relation.
b) The date when the enterprise recognizes the cost or expense related to the reorganization related topayment of the dismissal benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration, post-employment benefits, and dismissal benefits, including long-term paid absences, long-term disability benefits,long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized and measured as netliability or net asset of other long-term employee benefits according to relevant provisions of the defined benefitplan, except for those meetings the conditions of defined contribution plan.
23. Provisions
(1) Recognition criteria for provisions
When obligations related to contingencies meet the following conditions, the Company shall recognize themas provisions:
a) The obligation is the current obligation assumed by the Company.
b) The performance of this obligation may result in the outflow of economic benefits.
c) The amount of this obligation can be reliably measured.
(2) Measurement method of provisions
Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shallbe initially measured at the best estimate of the required expenditure for the performance of current obligation. Ifthe time value of money is significant, the best estimate shall be determined after discounting relevant future cashoutflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust thecarrying value to reflect current best estimate.
24. Revenue
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that wouldresult in an increase in shareholders' equity and are unrelated to capital contributions by shareholders.
The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that is,when the customer obtains control of the relevant goods. Obtaining control over related goods means being able todominate the use of the goods and obtain almost all economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transactionprice to each individual performance obligation according to the relative proportion of the individual selling priceof the goods or services promised under each individual performance obligation on the contract commencementdate, and measure the revenue according to the transaction price allocated to each individual performanceobligation.
Transaction price is the amount of consideration that the Company is expected to be received due to thetransfer of goods or services to customers, excluding the amount collected on behalf of third parties. Indetermining the transaction price of a contract, if variable consideration exists, the Company will determine thebest estimate of the variable consideration based on the expected or most likely amount and include in thetransaction price in an amount not exceeding the amount that the accumulated recognized revenue will most likelynot be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financingcomponent in the contract, the Company will determine the transaction price according to the amount payable bythe customer in cash when obtaining the control right of the goods. The difference between the transaction priceand the contract consideration will be amortized by the effective interest rate method during the contract period. Ifthe interval between the transfer of control right and the payment price by the customer does not exceed one year,
the Company will not consider the financing component.
Performance obligations are fulfilled within a certain period if any of the following conditions is met;otherwise, performance obligations are fulfilled at a certain point in time:
a) The customer acquires and consumes the economic benefits of the Company's performance at the sametime as the Company's performance;
b) The customer controls the goods under construction during the performance of the Company;
c) The goods produced by the Company during the performance of the contract have irreplaceable uses, andthe Company has the right to collect money for the accumulated performance that has been completed so farduring the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue accordingto the performance progress within that period, except that the performance progress cannot be reasonablydetermined. The Company determines the performance progress of the services provided according to the inputmethod (or output method). When the performance progress cannot be reasonably determined, if the costsincurred by the Company are expected to be compensated, the revenue shall be recognized according to theamount of costs incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at thepoint when the customer obtains control of the relevant goods. When judging whether the customer has acquiredcontrol of goods or services, the Company will consider the following indications:
a) The Company has a present right to receive payment for the goods or services, i.e. the customer has apresent obligation to pay for the goods;
b) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legalownership of the goods;
c) The Company has physically transferred the goods to the customer, i.e. the customer has taken physicalpossession of the goods;
d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,i.e., the customer has acquired the principal risks and rewards of ownership of the good;
e) The customer has accepted the goods.
(2) Recognition methods of revenues
a) Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods to thebuyer according to the contract, and recognizes revenue after the buyer signs for it;
b) Recognition methods of revenues for direct sales model
Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer andreceives payment or acquires the right to receive payment;
On-line sales; Revenue is recognized when the Company receives the payment transferred from the e-commerce platform from the consumer.
25. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by the Company andused for acquisition or construction or for formation of long-term assets in other ways, including the financialallocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assetsand others.
The specific standard of the Company for classifying the government subsidies as asset-related subsidies:
government subsidies obtained by the Company and used for acquisition or construction or for formation of long-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Company classifiesthe government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether thesubsidies are used for acquisition or construction or for formation of long-term assets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Government subsidies, whenactually received, shall be recognized as deferred income and transferred equally to current profit or loss based onthe expected service life of the long-term assets when the long-term assets are available for use.
The asset-related government subsidies are recognized as deferred income, and included in current profit orloss by stages based on the service life of the assets acquired and constructed. If the related asset is sold,transferred, scrapped or damaged before the end of the service life, the deferred income balance not yet distributedshall be transferred to the profits and losses of the period in which the assets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsidies other than asset-relatedgovernment subsidies.The specific standard of the Company for classifying the government subsidies as income-related subsidies:
All the government subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Government subsidies,when actually received, shall be included in current profit or loss if used to compensate the relevant expenses orlosses of the Company in the subsequent period; included in current profit or loss directly when acquired if usedto compensate relevant expenses or losses incurred by the Company.
Income-related government subsidies used to compensate the relevant expenses or losses of the Company inthe subsequent period shall be recognized as deferred income when acquired; included in current profit or loss inthe period in which relevant expenses are recognized; those used to compensate relevant expenses or lossesincurred by the Company, shall be directly included in profit or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be included in other incomesor used to offset relevant costs and expenses according to the substance of the economic business. Thegovernment subsidies irrelevant to the daily activities of the Company shall be included in non-operating revenue.
26. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognized accordingto the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the taxlaw shall be considered as temporary difference, and corresponding deferred income tax assets shall be recognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferred income taxliabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets orliabilities incurred in the transaction not for business combination that will not affect the accounting profits andtaxable income (or deductible losses), corresponding deferred income tax assets and deferred income tax liabilitiesshall not be recognized. The deferred income tax assets and deferred income tax liabilities are measured on thebalance sheet date according to the applicable tax rate in the period of expected recovery of relevant assets orliquidation of relevant liabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which the Company mayobtain for deducting deductible temporary differences, deductible losses and tax deduction. Deferred income taxassets and deferred income tax liabilities arising from temporary differences related to the investment insubsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlledby the Company and the temporary differences are likely to not be reversed in the foreseeable future, deferredincome tax assets and liabilities shall not be recognized.
27. Leases
From the effectiveness date of a contract, the Company assesses whether the contract is a lease or includesany lease. If a party to the contract transfers the right allowing the control over the use of one or more assets thathave been identified within a certain period, in exchange for a consideration, such contract is a lease or includes alease.
(1) Accounting treatment of the Company as the lessee
On the commencement date of the lease term, except for short-term leases and leases of low-value assetsbeing adopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.
Right-of-use assets shall be initially measured at costs, including: a) The initial measurement amount of thelease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is alease incentive, the amount related to the lease incentive taken should be deducted; c) the initial direct costincurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leaseholdproperty, and restore the site of the leasehold property or restore the leasehold property to the state agreed in thelease clauses (excluding the costs incurred by inventories for production).
The lease liabilities shall be initially measured at the present value of the unpaid lease payment from thecommencement date of the lease term. When calculating the present value of lease payments, the Company usesthe interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,the Company’s incremental lending rate is used as the rate of discount.
After the commencement date of the lease term, the Company subsequently measures the right-of-use assetsat cost model, and the right-of-use assets are subject to depreciation by using the straight-line method. Meanwhile,the interest expenses of the lease liabilities in each period of the lease term are calculated, and shall be included inthe profit or loss for the current period, unless otherwise stipulated to be included in underlying asset costs.Variable lease payments that are not covered in the measurement of the lease liabilities are included in current
profit or loss when actually incurred, unless otherwise stipulated to be included in underlying asset costs.For short-term leases within 12 months and leases of low-value assets, the Company chooses not torecognise right-of-use assets and lease liabilities. The relevant lease expenditures are included in relevant assetcost or the profit or loss for the current period in the straight-line method in each period of the lease term.
(2) Accounting treatment of the Company as the lessor
a) Classification of leaseThe Company classifies leases into finance leases and operating leases at the inception of leases. A financelease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, aresubstantially transferred, regardless of whether the ownership is eventually transferred or not. An operating leaserefers to all leases other than finance leases.b) Accounting treatment of financial leaseOn the commencement date of the lease term, the Company recognises the finance lease receivables for thefinance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance leasereceivables, the sum of the unsecured residual value and the present value of the lease payments receivable not yetreceived on the commencement date of the lease term discounted at the interest rate implicit in lease is the bookvalue of the finance lease receivables. The Company calculates and recognises the interest income in each periodwithin the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are notincluded in the measurement of the net investment in the lease are included in profit or loss for the current periodwhen they are actually incurred.
c) Accounting treatment of operating leaseThe Company recognises the lease payments receivable of the operating lease as rental earning in eachperiod within the lease term on a straight-line basis or according to other systematic and reasonable methods. Theinitial direct costs related to the operating lease are capitalised, amortised within the lease term on the same basisas the recognition of rental earning, and included in profit or loss for the current period. The received variablelease payments related to the operating lease that are not included in the lease payments receivable are included inprofit or loss for the current period when they are actually incurred.
28. Changes to Significant Accounting Policies and Estimates
(1) Changes to Significant Accounting Policies
? Applicable □ Not applicable
| Change and reason |
| Concerning the adoption of Interpretation No. 16 for the Accounting Standards for Business Enterprises, on 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the Accounting Standards for Business Enterprises (C.K. [2022] No. 31, hereinafter referred to as “Interpretation No. 16”, of which the “accounting treatment that deferred income tax related to assets and liabilities arising from a single transaction is not exempt in initial recognition” was effective from 1 January 2023. For a single transaction to which Interpretation No. 16 applies that occurred between the beginning of the earliest period presented in the financial statements to which Interpretation No. 16 was first applied (i.e., 1 January 2022) and 1 January 2023, adjustments shall be made in accordance with Interpretation No. 16. For taxable temporary differences and deductible temporary differences arising from lease liabilities and right-of-use assets recognised on 1 January 2022 as a result of a single transaction to which Interpretation No. 16 applies, the cumulative effects shall be adjusted to retained earnings and other relevant financial statement items on 1 January 2022 in accordance with Interpretation No. 16 and Accounting Standard No. 18 for Business Enterprises—Income Tax. |
The effects of the above-mentioned regulations on the consolidated financial statements are as follows:
Unit: RMB
| Item | 31 December 2022/2022 (before) | 31 December 2022/2022 (restated) | Amount of effect |
| Deferred income tax assets | 2,043,089,823.62 | 2,140,289,194.58 | 97,199,370.96 |
| Deferred income tax liabilities | 94,360,946.95 | 94,360,946.95 | |
| Retained earnings | 79,028,605,172.04 | 79,031,159,753.65 | 2,554,581.61 |
| Surplus reserves | 28,432,198,524.98 | 28,432,482,367.38 | 283,842.40 |
| Non-controlling interests | 2,659,130,827.92 | 2,659,130,827.92 | |
| Income tax expense | 9,132,888,784.02 | 9,133,735,140.97 | 846,356.95 |
| Net profit/loss attributable to non-controlling interests | 1,279,970,534.80 | 1,279,801,928.07 | -168,606.73 |
The effects of the above-mentioned regulations on the financial statements of the Company as the parent areas follows:
| Item | 31 December 2022/2022 (before) | 31 December 2022/2022 (restated) | Amount of effect |
| Deferred income tax assets | 1,082,797.53 | 1,375,528.61 | 292,731.08 |
| Deferred income tax liabilities | 487,152.85 | 487,152.85 | |
| Retained earnings | 52,952,968,888.03 | 52,952,793,908.44 | -174,979.59 |
| Surplus reserves | 13,295,638,080.20 | 13,295,618,638.02 | -19,442.18 |
| Income tax expense | 265,217,451.15 | 265,219,502.86 | 2,051.71 |
(2) Changes to Significant Accounting Estimates
□ Applicable ? Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of any New Accounting Standard or Standard Interpretation Implementedsince 2023
? Applicable □ Not applicable
Adjustments:
1. Adjustments to opening balance sheet items
Consolidated Balance Sheet
Unit: RMB
| Item | 31 December 2022 | 1 January 2023 | Amount of adjustment |
| Current assets: | |||
| Monetary assets | 92,358,426,975.79 | 92,358,426,975.79 | |
| Settlement reserve | |||
| Loans to other banks and financial institutions | |||
| Held-for-trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | 119,918,307.60 | 119,918,307.60 | |
| Accounts receivable | 35,686,942.32 | 35,686,942.32 | |
| Receivables financing | 28,904,198,420.44 | 28,904,198,420.44 | |
| Prepayments | 135,982,868.14 | 135,982,868.14 | |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 30,901,231.69 | 30,901,231.69 | |
| Of which: Interest receivable |
Dividends receivable
| Dividends receivable |
| Financial assets purchased under resale agreements | |||
| Inventories | 15,980,657,013.57 | 15,980,657,013.57 | |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets |
Other current assets
| Other current assets | |||
| Total current assets | 137,565,771,759.55 | 137,565,771,759.55 | |
| Non-current assets: | |||
| Loans and advances to customers | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 1,986,387,524.78 | 1,986,387,524.78 | |
| Other equity investments | |||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | |
| Investment property | |||
| Fixed assets | 5,312,971,445.61 | 5,312,971,445.61 |
Construction in progress
| Construction in progress | 3,773,155,983.95 | 3,773,155,983.95 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 380,922,885.84 | 380,922,885.84 | |
| Intangible assets | 518,517,835.31 | 518,517,835.31 | |
| Development costs | |||
| Goodwill | 1,621,619.53 | 1,621,619.53 | |
| Long-term prepaid expense | 158,586,327.06 | 158,586,327.06 | |
| Deferred income tax assets | 2,043,089,823.62 | 2,140,289,194.58 | 97,199,370.96 |
| Other non-current assets | 972,502,674.97 | 972,502,674.97 | |
| Total non-current assets | 15,148,956,120.67 | 15,246,155,491.63 | 97,199,370.96 |
| Total assets | 152,714,727,880.22 | 152,811,927,251.18 | 97,199,370.96 |
Current liabilities:
| Current liabilities: | |||
| Short-term borrowings | |||
| Borrowings from the central bank | |||
| Loans from other banks and financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 887,970,376.53 | 887,970,376.53 | |
| Accounts payable | 7,246,802,709.58 | 7,246,802,709.58 |
| Advances from customers | 16,160,671.49 | 16,160,671.49 | |
| Contract liabilities | 12,379,125,542.70 | 12,379,125,542.70 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from other banks and financial institutions | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities |
Employee benefits payable
| Employee benefits payable | 3,375,526,829.88 | 3,375,526,829.88 | |
| Taxes and levies payable | 5,301,718,185.93 | 5,301,718,185.93 | |
| Other payables | 4,631,434,915.43 | 4,631,434,915.43 | |
| Of which: Interest payable | |||
| Dividends payable | 13,191,392.99 | 13,191,392.99 | |
| Fees and commissions payable | |||
| Reinsurance payables | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 375,682,599.77 | 375,682,599.77 | |
| Other current liabilities | 1,544,723,419.34 | 1,544,723,419.34 | |
| Total current liabilities | 35,759,145,250.65 | 35,759,145,250.65 | |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Of which: Preference shares | |||
| Perpetual bonds |
Lease liabilities
| Lease liabilities | 16,976,148.73 | 16,976,148.73 | |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | 254,416,864.75 | 254,416,864.75 | |
| Deferred income tax liabilities | 94,360,946.95 | 94,360,946.95 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 271,393,013.48 | 365,753,960.43 | 94,360,946.95 |
| Total liabilities | 36,030,538,264.13 | 36,124,899,211.08 | 94,360,946.95 |
| Owners’ equity: | |||
| Share capital | 3,881,608,005.00 | 3,881,608,005.00 | |
| Other equity instruments |
Of which : Preference shares
| Of which : Preference shares | |||
| Perpetual bonds |
| Capital reserves | 2,682,647,086.15 | 2,682,647,086.15 | |
| Less: Treasury shares | |||
| Other comprehensive income | |||
| Specific reserve |
Surplus reserves
| Surplus reserves | 28,432,198,524.98 | 28,432,482,367.38 | 283,842.40 |
| General reserve | |||
| Retained earnings | 79,028,605,172.04 | 79,031,159,753.65 | 2,554,581.61 |
| Total equity attributable to owners of the Company as the parent | 114,025,058,788.17 | 114,027,897,212.18 | 2,838,424.01 |
| Non-controlling interests | 2,659,130,827.92 | 2,659,130,827.92 | |
| Total owners’ equity | 116,684,189,616.09 | 116,687,028,040.10 | 2,838,424.01 |
| Total liabilities and owners’ equity | 152,714,727,880.22 | 152,811,927,251.18 | 97,199,370.96 |
Balance Sheet of the Company as the parent
Unit: RMB
| Item | 31 December 2022 | 1 January 2023 | Amount of adjustment |
| Current assets: | |||
| Monetary assets | 51,104,448,387.06 | 51,104,448,387.06 |
Held-for-trading financial assets
| Held-for-trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | |||
| Receivables financing | |||
| Prepayments | 33,048,447.08 | 33,048,447.08 | |
| Other receivables | 8,462,631,304.66 | 8,462,631,304.66 | |
| Of which: Interest receivable | |||
| Dividends receivable | 2,126,718,123.00 | 2,126,718,123.00 | |
| Inventories | |||
| Contract assets | |||
| Assets held for sale |
Current portion of non-current assets
| Current portion of non-current assets | |||
| Other current assets | |||
| Total current assets | 59,600,128,138.80 | 59,600,128,138.80 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 13,383,816,192.05 | 13,383,816,192.05 | |
| Other equity investments | |||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
| Investment property | |||
| Fixed assets | 100,713,555.25 | 100,713,555.25 | |
| Construction in progress | 115,870,542.48 | 115,870,542.48 | |
| Productive living assets |
Oil and gas assets
| Oil and gas assets | |||
| Right-of-use assets | 1,948,611.38 | 1,948,611.38 | |
| Intangible assets | 38,664,783.59 | 38,664,783.59 | |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | |||
| Deferred income tax assets | 1,082,797.53 | 1,375,528.61 | 292,731.08 |
| Other non-current assets | |||
| Total non-current assets | 13,643,296,482.28 | 13,643,589,213.36 | 292,731.08 |
| Total assets | 73,243,424,621.08 | 73,243,717,352.16 | 292,731.08 |
| Current liabilities: | |||
| Short-term borrowings |
Held-for-trading financial liabilities
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 1,134,674.42 | 1,134,674.42 | |
| Advances from customers | |||
| Contract liabilities | |||
| Employee benefits payable | 4,106,534.36 | 4,106,534.36 | |
| Taxes and levies payable | 277,283,965.88 | 277,283,965.88 | |
| Other payables | 146,366,462.73 | 146,366,462.73 | |
| Of which: Interest payable | |||
| Dividends payable | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 1,170,924.31 | 1,170,924.31 | |
| Other current liabilities |
Total current liabilities
| Total current liabilities | 430,062,561.70 | 430,062,561.70 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Of which: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | 500,000.00 | 500,000.00 |
Deferred income tax liabilities
| Deferred income tax liabilities | 487,152.85 | 487,152.85 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 500,000.00 | 987,152.85 | 487,152.85 |
| Total liabilities | 430,562,561.70 | 431,049,714.55 | 487,152.85 |
| Owners’ equity: | |||
| Share capital | 3,881,608,005.00 | 3,881,608,005.00 | |
| Other equity instruments | |||
| Of which: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 2,682,647,086.15 | 2,682,647,086.15 | |
| Less: Treasury shares | |||
| Other comprehensive income |
Specific reserve
| Specific reserve | |||
| Surplus reserves | 13,295,638,080.20 | 13,295,618,638.02 | -19,442.18 |
| Retained earnings | 52,952,968,888.03 | 52,952,793,908.44 | -174,979.59 |
| Total owners’ equity | 72,812,862,059.38 | 72,812,667,637.61 | -194,421.77 |
| Total liabilities and owners’ equity | 73,243,424,621.08 | 73,243,717,352.16 | 292,731.08 |
2. Adjustments to income statement items of last year
Consolidated Income Statement
Unit: RMB
| Item | 2022 (before) | 2022 (restated) | Amount of adjustment |
I Total revenues
| I Total revenues | 73,968,640,704.54 | 73,968,640,704.54 | |
| Of which: Operating revenue | 73,968,640,704.54 | 73,968,640,704.54 | |
| Interest income | |||
| Insurance premium income | |||
| Fee and commission income | |||
| II Total costs and expenses | 37,049,016,916.17 | 37,049,016,916.17 | |
| Of which: Cost of sales | 18,178,425,659.64 | 18,178,425,659.64 | |
| Interest costs | |||
| Fee and commission costs | |||
| Surrenders | |||
| Net insurance claims paid | |||
| Net amount provided as insurance contract reserve | |||
| Expenditure on policy dividends |
| Reinsurance premium expense | |||
| Taxes and levies | 10,748,802,377.04 | 10,748,802,377.04 | |
| Selling expense | 6,844,237,013.17 | 6,844,237,013.17 | |
| Administrative expense | 3,068,119,268.45 | 3,068,119,268.45 |
R&D expense
| R&D expense | 235,783,645.79 | 235,783,645.79 | |
| Finance costs | -2,026,351,047.92 | -2,026,351,047.92 | |
| Of which: Interest expense | 48,003,667.91 | 48,003,667.91 | |
| Interest income | 2,075,700,630.12 | 2,075,700,630.12 | |
| Add: Other income | 186,525,904.41 | 186,525,904.41 | |
| Return on investment (“－” for loss) | 92,571,951.15 | 92,571,951.15 | |
| Of which: Share of profit or loss of joint ventures and associates | 92,571,951.15 | 92,571,951.15 | |
| Income from the derecognition of financial assets at amortized cost | |||
| Exchange gain (“－” for loss) | |||
| Net gain on exposure hedges (“－” for loss) | |||
| Gain on changes in fair value (“－” for loss) | |||
| Credit impairment loss (“－” for loss) | -1,437,932.66 | -1,437,932.66 | |
| Asset impairment loss (“－” for loss) | -26,207,459.87 | -26,207,459.87 | |
| Asset disposal income (“－” for loss) | 3,347,202.23 | 3,347,202.23 | |
| III Operating profit (“－” for loss) | 37,174,423,453.63 | 37,174,423,453.63 | |
| Add: Non-operating income | 38,885,270.86 | 38,885,270.86 | |
| Less: Non-operating expense | 109,788,008.25 | 109,788,008.25 | |
| IV Gross profit (“－” for gross loss) | 37,103,520,716.24 | 37,103,520,716.24 | |
| Less: Income tax expense | 9,132,888,784.02 | 9,133,735,140.97 | 846,356.95 |
| V Net profit (“－” for net loss) | 27,970,631,932.22 | 27,969,785,575.27 | -846,356.95 |
| (I) By operating continuity | |||
| 1. Net profit from continuing operations (“－” for net loss) | 27,970,631,932.22 | 27,969,785,575.27 | -846,356.95 |
| 2. Net profit from discontinued operations (“－” for net loss) | |||
| (II) By ownership | |||
| 1. Net profit attributable to owners of the Company as the parent | 26,690,661,397.42 | 26,689,983,647.20 | -677,750.22 |
| 2. Net profit attributable to non-controlling interests | 1,279,970,534.80 | 1,279,801,928.07 | -168,606.73 |
| VI Other comprehensive income, net of tax | |||
| Other comprehensive income, net of tax attributable to owners of the Company as the parent | |||
| (I) Other comprehensive income that will not be reclassified to profit or loss | |||
| 1. Changes caused by remeasurements on defined benefit schemes | |||
| 2. Other comprehensive income that will not be reclassified to profit or loss under the |
| equity method | |||
| 3. Changes in the fair value of other debt investments | |||
| 4. Changes in the fair value arising from changes in own credit risk | |||
| 5. Other | |||
| (II) Other comprehensive income that will be reclassified to profit or loss | |||
| 1. Other comprehensive income that will be reclassified to profit or loss under the equity method | |||
| 2. Changes in the fair value of other debt investments | |||
| 3. Other comprehensive income arising from the reclassification of financial assets | |||
| 4. Credit impairment allowances for other debt investments | |||
| 5. Reserve for cash flow hedges | |||
| 6. Differences arising from the translation of foreign currency-denominated financial statements | |||
| 7. Other | |||
| Other comprehensive income, net of tax attributable to non-controlling interests | |||
| VII Total comprehensive income | 27,970,631,932.22 | 27,969,785,575.27 | -846,356.95 |
| Total comprehensive income attributable to owners of the Company as the parent | 26,690,661,397.42 | 26,689,983,647.20 | -677,750.22 |
| Total comprehensive income attributable to non-controlling interests | 1,279,970,534.80 | 1,279,801,928.07 | -168,606.73 |
| VIII Earnings per share： | |||
| (I) Basic earnings per share | 6.876 | 6.876 | |
| (II) Diluted earnings per share | 6.876 | 6.876 |
Income Statement of the Company as the parent
Unit: RMB
| Item | 31 December 2022 | 1 January 2023 | Amount of adjustment |
| I Operating revenue | |||
| Less: Cost of sales | |||
| Taxes and levies | 370,416.70 | 370,416.70 | |
| Selling expense | |||
| Administrative expense | 142,946,488.68 | 142,946,488.68 | |
| R&D expense | 55,470,547.04 | 55,470,547.04 | |
| Finance costs | -1,320,194,889.62 | -1,320,194,889.62 | |
| Of which: Interest expense | 68,515.70 | 68,515.70 | |
| Interest income | 1,320,290,654.38 | 1,320,290,654.38 | |
| Add: Other income | 20,873,010.56 | 20,873,010.56 | |
| Return on investment (“－” for loss) | 18,799,779,256.49 | 18,799,779,256.49 | |
| Of which: Share of profit or loss of joint ventures and associates | 87,619,669.47 | 87,619,669.47 |
| Income from the derecognition of financial assets at amortized cost (“－” for loss) | |||
| Net gain on exposure hedges (“－” for loss) |
Gain on changes in fair value (“－” for loss)
| Gain on changes in fair value (“－” for loss) | |||
| Credit impairment loss (“－” for loss) | -1,002,989.80 | -1,002,989.80 | |
| Asset impairment loss (“－” for loss)） | |||
| Asset disposal income (“－” for loss) | |||
| II Operating profit (“－” for loss) | 19,941,056,714.45 | 19,941,056,714.45 | |
| Add: Non-operating income | 413,500.00 | 413,500.00 | |
| Less: Non-operating expense | 58,415,869.51 | 58,415,869.51 | |
| III Gross profit (“－” for gross loss) | 19,883,054,344.94 | 19,883,054,344.94 | |
| Less: Income tax expense | 265,217,451.15 | 265,219,502.86 | 2,051.71 |
| IV Net profit (“－” for net loss) | 19,617,836,893.79 | 19,617,834,842.08 | -2,051.71 |
| (I) Net profit from continuing operations (“－” for net loss) | 19,617,836,893.79 | 19,617,834,842.08 | -2,051.71 |
| (II) Net profit from discontinued operations (“－” for net loss) | |||
| V Other comprehensive income, net of tax | |||
| (I) Other comprehensive income that will not be reclassified to profit or loss | |||
| 1. Changes caused by remeasurements on defined benefit schemes | |||
| 2. Other comprehensive income that will not be reclassified to profit or loss under the equity method | |||
| 3. Changes in the fair value of other debt investments | |||
| 4. Changes in the fair value arising from changes in own credit risk | |||
| 5. Other | |||
| (II) Other comprehensive income that will be reclassified to profit or loss | |||
| 1. Other comprehensive income that will be reclassified to profit or loss under the equity method | |||
| 2. Changes in the fair value of other debt investments | |||
| 3. Other comprehensive income arising from the reclassification of financial assets | |||
| 4. Credit impairment allowances for other debt investments | |||
| 5. Reserve for cash flow hedges | |||
| 6. Differences arising from the translation of foreign currency-denominated financial statements | |||
| 7. Other |
VI Total comprehensive income
| VI Total comprehensive income | 19,617,836,893.79 | 19,617,834,842.08 | -2,051.71 |
| VII Earnings per share： | |||
| (I) Basic earnings per share | |||
| (II) Diluted earnings per share |
VI Taxes
1. Main taxes and tax rates
| Tax Item | Tax Basis | Tax Rate |
| VAT | Taxable sales revenue | 13% (paid after offsetting input tax) |
| Consumption tax | Taxable price or ex-factory price | 10%, 20% |
| Urban maintenance and construction tax | Turnover tax payable | 7% |
| Corporate income tax | Taxable income | 25% |
| Education surcharge | Turnover tax payable | 3% |
| Local education surcharge | Turnover tax payable | 2% |
Note on disclosure of taxpayer applying different corporate income tax rates:
| Name of taxpayer | Income tax rate |
| Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | 15% |
| Sichuan Yibin Plastic Packaging Materials Company Limited | 15% |
| Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | 15% |
| Yibin Xinxing Packaging Co., Ltd. | 20% |
| Sichuan Jiebeike Environmental Technology Co., Ltd. | 20% |
| Sichuan Jinwuxin Technology Co., Ltd. | 20% |
2. Tax preference
(1) Value added tax (VAT)
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate ofsocial welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of SichuanProvince. The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VATPreferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the StateAdministration of Taxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverablevalue-added tax of each month = Number of disabled person employed by the taxpayer in current month xquadruple of the minimum wage of current month. The amount of value-added tax refunded in 2023 wasRMB83,435,000.00.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials CompanyLimited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to theAnnouncement of the Ministry of Finance and the State Taxation Administration on Continuing the CorporateIncome Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of theMinistry of Finance, the State Taxation Administration and the National Development and Reform Commission)has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., and SichuanJinwuxin Technology Co., Ltd., comply with the provisions of the Announcement of the State TaxationAdministration and the Ministry of Finance on Further Supporting Small and Micro Enterprises and IndividualIndustrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12 of 2023 ofthe Ministry of Finance and the State Taxation Administration). They are eligible for a 25% reduction in thecalculation of taxable income for small and micro-profit enterprises, and they are subject to a 20% enterpriseincome tax rate, continuing until 31 December 2027.VII Notes to the Consolidated Financial Statements
1. Monetary assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 42,156.81 | 19,772.01 |
| Bank deposits | 74,892,248,621.63 | 57,099,833,261.29 |
| Other monetary assets | 264,472,639.86 | 214,242,264.36 |
| Deposits in Wuliangye Group Finance | 40,299,537,492.34 | 35,044,331,678.13 |
| Total | 115,456,300,910.64 | 92,358,426,975.79 |
| Of which: total overseas funds |
A liquor/wine production enterprise should disclose in detail whether there is any special interestarrangement where the Company and any of its stakeholders have a joint account for funds, etc.
□ Applicable ? Not applicable
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB
| Item | Closing balance | Opening balance |
| Letters of credit | 119,918,307.60 | |
| Total | 119,918,307.60 |
(2) Notes receivable by method of establishing allowance for doubtful account
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
| Notes receivable for which allowances for doubtful accounts are established on an individual basis | ||||||||||
| Notes receivable for which allowances for doubtful accounts are established on a grouping basis | 119,918,307.60 | 100.00% | 119,918,307.60 | |||||||
| Of which: | ||||||||||
| Letters of credit | 119,918,307.60 | 100.00% | 119,918,307.60 | |||||||
| Total | 119,918,307.60 | 100.00% | 119,918,307.60 | |||||||
Allowances for doubtful notes receivable established using the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
The Company had no allowances for doubtful accounts established, recovered or reversed in the currentperiod.
(4) Notes receivable in pledge at the end of the current period
The Company had no notes receivable pledged by the Company at the end of the period.
(5) Notes receivable endorsed or discounted by the Company at the end of the current period and notexpired yet on the balance sheet dateThe Company had no notes receivable endorsed or discounted by the Company at the end of the period andnot expired yet on the balance sheet date.
(6) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
3. Accounts receivable
(1) Accounts receivable presented by category
Unit: RMB
| Aging | Closing gross amount | Opening gross amount |
| Within 1 year (inclusive) | 42,890,430.03 | 35,188,964.20 |
| 1 to 2 years | 31,487.08 | 285,551.64 |
| 2 to 3 years | 278,631.80 | 66.00 |
| More than 3 years | 6,233,545.71 | 8,148,052.25 |
| 3 to 4 years | 66.00 | 676,388.51 |
| 4 to 5 years | 473,121.61 | 708,459.63 |
| More than 5 years | 5,760,358.10 | 6,763,204.11 |
| Total | 49,434,094.62 | 43,622,634.09 |
The Company had no accounts receivable with significant individual amounts aged over three years at the endof the period.
(2) Accounts receivable by method of establishing allowance for doubtful account
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
| Accounts receivable for which allowances for doubtful accounts are established on an individual basis | 3,477,979.92 | 7.04% | 3,477,979.92 | 100.00% | 5,174,866.86 | 11.86% | 5,174,866.86 | 100.00% | ||
| Of which: | ||||||||||
| Of which: External customers | 3,477,979.92 | 7.04% | 3,477,979.92 | 100.00% | 5,174,866.86 | 11.86% | 5,174,866.86 | 100.00% | ||
| Accounts receivable for which allowances for doubtful accounts are established on a grouping basis | 45,956,114.70 | 92.96% | 3,308,653.22 | 7.20% | 42,647,461.48 | 38,447,767.23 | 88.14% | 2,760,824.91 | 7.18% | 35,686,942.32 |
| Of which: | ||||||||||
| Of which: External customers | 27,090,348.48 | 54.80% | 3,308,653.22 | 12.21% | 23,781,695.26 | 22,700,453.71 | 52.04% | 2,760,824.91 | 12.16% | 19,939,628.80 |
| Related parties | 18,865,766.22 | 38.16% | 18,865,766.22 | 15,747,313.52 | 36.10% | 15,747,313.52 | ||||
| Total | 49,434,094.62 | 100.00% | 6,786,633.14 | 13.73% | 42,647,461.48 | 43,622,634.09 | 100.00% | 7,935,691.77 | 18.19% | 35,686,942.32 |
Accounts receivable for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
| Entity | Opening balance | Closing balance | ||||
| Gross amount | Allowance for doubtful account | Gross amount | Allowance for doubtful account | Allowance as % of the | Reason for allowance | |
| gross amount | ||||||
| Qu Liang | 1,411,528.44 | 1,411,528.44 | 1,411,528.44 | 1,411,528.44 | 100.00% | Expected to be unrecoverable |
| Beijing Junhui Tianhong Trading Co., Ltd. | 1,174,891.71 | 1,174,891.71 | 1,174,891.71 | 1,174,891.71 | 100.00% | Expected to be unrecoverable |
| Nanxi Daliangxin Food Co., Ltd. | 389,729.12 | 389,729.12 | 389,729.12 | 389,729.12 | 100.00% | Expected to be unrecoverable |
| Sichuan Debo Daily Commodity Co., Ltd. | 294,230.65 | 294,230.65 | 294,230.65 | 294,230.65 | 100.00% | Expected to be unrecoverable |
| Gushi County Yingjun Liquor | 207,600.00 | 207,600.00 | 207,600.00 | 207,600.00 | 100.00% | Expected to be unrecoverable |
| Wang Xiubing | 872,596.00 | 872,596.00 | ||||
| Ningxiahong Zhongning Wolfberry Products Co., Ltd. | 516,135.60 | 516,135.60 | ||||
| Hunan Liuyanghe Liquor Industry Co., Ltd. | 308,155.34 | 308,155.34 | ||||
| Total | 5,174,866.86 | 5,174,866.86 | 3,477,979.92 | 3,477,979.92 |
Accounts receivable for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | |
| Accounts receivable for which allowances for doubtful accounts are established based on the external customer group | 27,090,348.48 | 3,308,653.22 | 12.21% |
| Accounts receivable for which allowances for doubtful accounts are established based on the related party group | 18,865,766.22 | ||
| Total | 45,956,114.70 | 3,308,653.22 | |
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
| Category | Opening balance | Changes in the current period | Closing balance | |||
| Established | Recovered or reversed | Written off | Others | |||
| Accounts receivable for which allowances for doubtful accounts are established on an individual basis | 5,174,866.86 | 1,388,731.60 | 308,155.34 | 3,477,979.92 | ||
| Accounts receivable for which allowances for doubtful accounts are established based on the external customer group | 2,760,824.91 | 547,828.31 | 3,308,653.22 | |||
| Total | 7,935,691.77 | 547,828.31 | 1,388,731.60 | 308,155.34 | 6,786,633.14 | |
The Company had no significant recovered or reversed allowances for doubtful accounts in the currentperiod.
(4) Accounts receivable actually written off in the current period
Unit: RMB
| Item | Amount written off |
| Accounts receivable actually written off | 308,155.34 |
| Total | 308,155.34 |
(5) Top five entities with respect to accounts receivable and contract assets
Unit: RMB
| Entity | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets combined | As % of the closing balance of total accounts receivable and contract assets | Closing balance of allowances for doubtful accounts and impairment allowances for contract assets |
| Sichuan Putian Packaging Co., Ltd. | 11,034,316.71 | 11,034,316.71 | 22.32% |
| Chengdu Huayu Glass Manufacturing Co., Ltd. | 3,953,526.99 | 3,953,526.99 | 8.00% | ||
| Hebei Kun Yun Plastic Packaging Technology Co., Ltd. | 3,781,972.96 | 3,781,972.96 | 7.65% | 189,098.65 | |
| Yibin Liya Fiber Industry Co., Ltd. | 2,641,212.86 | 2,641,212.86 | 5.34% | ||
| Beijing TongRenTang Health Pharmaceutical (Ningxia) Co., Ltd. | 1,627,977.48 | 1,627,977.48 | 3.29% | 81,398.87 | |
| Total | 23,039,007.00 | 23,039,007.00 | 46.60% | 270,497.52 |
4. Receivables financing
(1) Receivables financing presented by category
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bills | 14,086,450,565.79 | 28,904,198,420.44 |
| Total | 14,086,450,565.79 | 28,904,198,420.44 |
(2) Receivables financing by method of establishing allowance for doubtful account
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
| Receivables financing for which allowances for doubtful accounts are established on an individual basis | ||||||||||
| Receivables financing for which allowances for doubtful accounts are established on a grouping basis | 14,086,450,565.79 | 100.00% | 14,086,450,565.79 | 28,904,198,420.44 | 100.00% | 28,904,198,420.44 | ||||
| Of which: | ||||||||||
| Of which: Bank acceptance bills | 14,086,450,565.79 | 100.00% | 14,086,450,565.79 | 28,904,198,420.44 | 100.00% | 28,904,198,420.44 | ||||
| Total | 14,086,450,565.79 | 100.00% | 14,086,450,565.79 | 28,904,198,420.44 | 100.00% | 28,904,198,420.44 | ||||
The Company had no receivables financing for which allowances for doubtful accounts are established on an individual basis as at the end of the current period.
Receivables financing for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | |
| Bank acceptance bills | 14,086,450,565.79 | ||
| Total | 14,086,450,565.79 | ||
(3) Allowances for doubtful accounts established, recovered or reversed in the current periodThe Company had no allowances for doubtful accounts established, recovered or reversed in the currentperiod.
(4) Receivables financing in pledge at the end of the current period
The Company had no receivables financing in pledge at the end of the current period.
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not expiredyet on the balance sheet date
Unit: RMB
| Item | Amount derecognized at the end of the period | Amount not yet derecognized at the end of the period |
| Bank acceptance bills | 1,546,869,677.66 | |
| Total | 1,546,869,677.66 |
(6) Receivables financing actually written off at the end of the period
The Company had no receivables financing actually written off at the end of the period.
5. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 39,624,933.74 | 30,901,231.69 |
| Total | 39,624,933.74 | 30,901,231.69 |
(1) Other receivables
1) Other receivables classified by nature
Unit: RMB
| Nature | Closing gross amount | Opening gross amount |
| Cash float | 2,277,566.82 | 4,232,009.46 |
| Current account | 1,510,890.62 | 2,980,205.78 |
| Security deposits | 38,602,390.27 | 26,975,912.31 |
| Other advance money for others or temporary payment | 7,119,780.00 | 5,094,260.41 |
| Total | 49,510,627.71 | 39,282,387.96 |
2) Other receivables presented by aging
Unit: RMB
| Aging | Closing gross amount | Opening gross amount |
| Within 1 year (inclusive) | 31,302,289.55 | 17,581,713.35 |
| 1 to 2 years | 4,460,593.08 | 3,323,404.48 |
| 2 to 3 years | 1,394,469.00 | 5,059,243.45 |
| More than 3 years | 12,353,276.08 | 13,318,026.68 |
| 3 to 4 years | 1,069,474.75 | 3,963,253.36 |
| 4 to 5 years | 2,768,887.33 | 6,209,638.20 |
| More than 5 years | 8,514,914.00 | 3,145,135.12 |
| Total | 49,510,627.71 | 39,282,387.96 |
3) Other receivables by method of establishing allowance for doubtful account? Applicable □ Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
| Other receivables for which allowances for doubtful accounts are established on an individual basis | 1,838.85 | 0.00% | 1,838.85 | 100.00% | 1,838.85 | 0.00% | 1,838.85 | 100.00% | ||
| Of which: | ||||||||||
| Of which: External customers | 1,838.85 | 0.00% | 1,838.85 | 100.00% | 1,838.85 | 0.00% | 1,838.85 | 100.00% | ||
| Other receivables for which allowances for doubtful accounts are established on a grouping basis | 49,508,788.86 | 100.00% | 9,883,855.12 | 19.96% | 39,624,933.74 | 39,280,549.11 | 100.00% | 8,379,317.42 | 21.33% | 30,901,231.69 |
| Of which: | ||||||||||
| Of which: External customers | 48,467,068.38 | 97.89% | 9,883,855.12 | 20.39% | 38,583,213.26 | 37,870,095.41 | 96.40% | 8,379,317.42 | 22.13% | 29,490,777.99 |
| Related parties | 1,041,720.48 | 2.10% | 1,041,720.48 | 1,410,453.70 | 3.59% | 1,410,453.70 | ||||
| Total | 49,510,627.71 | 100.00% | 9,885,693.97 | 19.97% | 39,624,933.74 | 39,282,387.96 | 100.00% | 8,381,156.27 | 21.34% | 30,901,231.69 |
Other receivables for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
| Item | Opening balance | Closing balance | ||||
| Gross amount | Allowance for doubtful account | Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | Reason for allowance | |
| Other receivables for which allowances for doubtful accounts are established on an individual basis | 1,838.85 | 1,838.85 | 1,838.85 | 1,838.85 | 100.00% | Expected to be unrecoverable |
| Total | 1,838.85 | 1,838.85 | 1,838.85 | 1,838.85 | ||
Other receivables for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | |
| Other receivables for which allowances for doubtful accounts are established based on the external customer group | 48,467,068.38 | 9,883,855.12 | 20.39% |
| Other receivables for which allowances for doubtful accounts are established based on the related party group | 1,041,720.48 | ||
| Total | 49,508,788.86 | 9,883,855.12 | |
Allowances for doubtful accounts established using the general model of expected credit loss:
Unit: RMB
| Allowances for doubtful accounts | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance as at 1 January 2023 | 8,379,317.42 | 1,838.85 | 8,381,156.27 | |
| Balance as at 1 January 2023 was in the current period | ||||
| - Transferred to Stage 2 | ||||
| - Transferred to Stage 3 | -108,556.88 | 108,556.88 | ||
| - Transferred back to Stage 2 | ||||
| - Transferred back to Stage 1 | ||||
| Established in the current period | 1,613,094.58 | 1,613,094.58 | ||
| Reversed in the current period | ||||
| Charged off in the current period | ||||
| Written off in the current period | 108,556.88 | 108,556.88 | ||
| Other changes | ||||
| Balance as at 31 December 2023 | 9,883,855.12 | 1,838.85 | 9,885,693.97 |
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
4) Allowances for doubtful accounts established, recovered or reversed in the current periodAllowances for doubtful accounts in the current period:
Unit: RMB
| Category | Opening balance | Changes in the current period | Closing balance | |||
| Established | Recovered or reversed | Charged off or written off | Others | |||
| Other receivables for which allowances for doubtful accounts are established on an individual basis | 1,838.85 | 1,838.85 | ||||
| Other receivables for which allowances for doubtful accounts are established based on the credit risk characteristic group | 8,379,317.42 | 1,613,094.58 | 108,556.88 | 9,883,855.12 | ||
| Total | 8,381,156.27 | 1,613,094.58 | 108,556.88 | 9,885,693.97 | ||
5) Other receivables actually written off in the current period
Unit: RMB
| Item | Amount written off |
| Other receivables actually written off | 108,556.88 |
| Total | 108,556.88 |
6) Top five entities with respect to other receivables
Unit: RMB
| Entity | Nature of account | Closing balance | Aging | As % of the closing balance of total other receivables | Closing balance of allowances for doubtful accounts |
| Jiang'an County People's Government | Security deposit | 10,000,000.00 | Within 1year | 20.20% | 300,000.00 |
| Yibin Zhongqi Natural Gas Co., Ltd. | Security deposit | 8,000,000.00 | Within 1year | 16.16% | 240,000.00 |
| Yibin Cuiping District Housing and Urban-Rural Development Bureau | Security deposit | 5,000,000.00 | Over 5 years | 10.10% | 4,000,000.00 |
| Sichuan Chengdu Railway International Business Travel Group Co., Ltd. | Security deposit | 2,054,331.00 | Within 1year | 4.15% | 61,629.93 |
| Chongqing Xibolesi Building Engineering Co., Ltd. | Advance money for others | 1,671,340.32 | Over 5 years | 3.38% | 1,337,072.26 |
| Total | 26,725,671.32 | 53.98% | 5,938,702.19 |
6. Prepayments
(1) Prepayments presented by aging
Unit: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | As % of total prepayments | Amount | As % of total prepayments | |
| Within 1 year | 143,838,589.00 | 84.90% | 71,127,726.38 | 52.31% |
| 1 to 2 years | 6,079,402.92 | 3.59% | 23,434,210.61 | 17.23% |
| 2 to 3 years | 11,610,807.73 | 6.85% | 3,031,956.47 | 2.23% |
| More than 3 years | 7,896,945.50 | 4.66% | 38,388,974.68 | 28.23% |
| Total | 169,425,745.15 | 135,982,868.14 |
The Company had no prepayments with significant amounts aged over three years at the end of the period.
(2) Top five entities with respect to prepayments
Unit: RMB
| Entity | Closing balance | As % of the closing balance of total prepayments |
| Chenmaofa (Xiamen) Supply Chain Co., Ltd. | 34,431,719.83 | 20.32% |
| Yibin PetroChina Kunlun Guoding Gas Co., Ltd. | 27,750,000.00 | 16.38% |
| Zhejiang Xiechen Supply Chain Management Co., Ltd. | 11,186,000.00 | 6.60% |
Sichuan Huashan Yungu Digital Technology Co., Ltd.
| Sichuan Huashan Yungu Digital Technology Co., Ltd. | 6,350,408.95 | 3.75% |
| Wuming Tea Industry Holding Co., Ltd. | 6,016,608.60 | 3.55% |
| Total | 85,734,737.38 | 50.60% |
7. Inventory
(1) Classification of inventory
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Inventory valuation allowances or impairment allowances for contract performance costs | Carrying amount | Gross amount | Inventory valuation allowances or impairment allowances for contract performance costs | Carrying amount | |
| Raw materials | 535,367,248.85 | 5,839,586.09 | 529,527,662.76 | 707,788,815.54 | 5,923,783.20 | 701,865,032.34 |
| Goods in process | 1,263,271,738.43 | 1,263,271,738.43 | 1,198,799,326.25 | 1,198,799,326.25 | ||
| Inventory of goods | 3,786,765,952.30 | 30,118,427.27 | 3,756,647,525.03 | 2,498,986,318.92 | 30,602,282.53 | 2,468,384,036.39 |
| Turnover materials | 2,771,487.81 | 436,409.41 | 2,335,078.40 | 3,026,557.39 | 436,409.41 | 2,590,147.98 |
| Goods issued | 231,804,401.04 | 917,805.65 | 230,886,595.39 | 105,088,512.68 | 1,956,236.12 | 103,132,276.56 |
| Homemade semi-finished products | 11,540,815,410.35 | 150,386.01 | 11,540,665,024.34 | 11,388,060,199.27 | 150,386.01 | 11,387,909,813.26 |
| Packing materials | 15,916,796.10 | 15,916,796.10 | 15,916,796.10 | 15,916,796.10 | ||
| Manufacturing consignment materials | 29,963,859.21 | 29,963,859.21 | 86,136,817.83 | 86,136,817.83 | ||
| Goods in transit | 34,544,229.31 | 34,544,229.31 | 31,839,562.96 | 31,839,562.96 | ||
| Total | 17,441,221,123.40 | 53,379,410.53 | 17,387,841,712.87 | 16,035,642,906.94 | 54,985,893.37 | 15,980,657,013.57 |
The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
(2) Classification of merchandise on hand
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Valuation allowances | Carrying amount | Gross amount | Valuation allowances | Carrying amount | |
| Liquor | 2,960,244,729.82 | 2,960,244,729.82 | 1,937,262,431.76 | 1,937,262,431.76 | ||
| Plastic products | 597,271,784.75 | 1,883,172.95 | 595,388,611.80 | 290,783,376.85 | 1,367,676.36 | 289,415,700.49 |
| Printing | 45,863,262.76 | 15,689,954.97 | 30,173,307.79 | 38,532,766.99 | 15,558,180.76 | 22,974,586.23 |
| Glass bottles | 142,839,505.25 | 8,278,895.75 | 134,560,609.50 | 176,993,699.53 | 12,986,459.20 | 164,007,240.33 |
| Others | 40,546,669.72 | 4,266,403.60 | 36,280,266.12 | 55,414,043.79 | 689,966.21 | 54,724,077.58 |
| Total | 3,786,765,952.30 | 30,118,427.27 | 3,756,647,525.03 | 2,498,986,318.92 | 30,602,282.53 | 2,468,384,036.39 |
(3) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Established | Others | Reversed or charged off | Others | |||
| Raw materials | 5,923,783.20 | 84,197.11 | 5,839,586.09 | |||
| Inventory of goods | 30,602,282.53 | 3,932,827.97 | 4,416,683.23 | 30,118,427.27 | ||
| Turnover materials | 436,409.41 | 436,409.41 | ||||
| Packing materials | 15,916,796.10 | 15,916,796.10 | ||||
| Goods issued | 1,956,236.12 | 1,038,430.47 | 917,805.65 | |||
| Semi-finished products | 150,386.01 | 150,386.01 | ||||
| Total | 54,985,893.37 | 3,932,827.97 | 5,539,310.81 | 53,379,410.53 | ||
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costs
None
(5) Notes of the amount of contract performance costs amortized for the current period
None
8. Long-term equity investments
Unit: RMB
| Investee | Opening balance (carrying amount) | Opening balance of impairment allowance | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | |||||||
| Increase in investment | Decrease in investment | Return on investment recognized using the equity method | Adjustment to other comprehensive income | Other equity changes | Declared cash dividends or profit | Impairment allowance | Others | |||||
| I Joint ventures | ||||||||||||
| II Associates | ||||||||||||
| Oriental Outlook Media Co., Ltd. | 26,129,137.92 | 1,232,799.42 | 27,361,937.34 | |||||||||
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,930,138,327.52 | 51,680,660.38 | 23,638,368.00 | 1,958,180,619.90 | ||||||||
| Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | 10,646,588.50 | 105,070.15 | 10,751,658.65 | |||||||||
| Yibin Jiamei Intelligent Packaging Co., Ltd. | 19,473,470.84 | 4,598,553.96 | 24,072,024.80 | |||||||||
| Sub-total | 1,986,387,524.78 | 57,617,083.91 | 23,638,368.00 | 2,020,366,240.69 | ||||||||
| Total | 1,986,387,524.78 | 57,617,083.91 | 23,638,368.00 | 2,020,366,240.69 | ||||||||
Other information:
(1) The Company invested in Oriental Outlook Media Co., Ltd., an associate of the Company, forimplementing the strategy of entering the media industry. The Company contributed RMB17.15 million in April2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by China Worldbest Group, ShanghaiWorldbest Co., Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24October 2012, the Company, Wuliangye Group and six of its subsidiaries, and ABC International HoldingsLimited jointly invested and established Sichuan Yibin Wuliangye Group Finance Co., Ltd. (Wuliangye GroupFinance). Its registered capital is RMB2 billion, among which the Company contributed RMB720 million, takingup 36% of the registered capital.
On 23 May 2020, the 74th meeting of the 5th Board of Directors of the Company considered and approvedthe capital increase of the Company to Wuliangye Group Finance based on the net asset value per share ofWuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase ofRMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered capital and RMB202,962,041.73was credited to capital reserve. In this capital increase, the related party Sichuan Yibin Wuliangye Group Co., Ltd.increased its capital at the same price, and the remaining shareholders of Wuliangye Group Finance did notparticipate in this capital increase. After the completion of this capital increase, the registered capital ofWuliangye Group Finance increased from RMB2 billion to RMB3,085,619,164.80, and the shareholding ratio ofthe Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, andShenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established Yibin Jiamei IntelligentPackaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co., Ltd. include research anddevelopment, platemaking, printing, production and sales of packaging products. Its registered capital is RMB20million, among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB9.8 million, takingup 49% of the registered capital.
(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5February 2021, the Company, Beijing Zhongjiuhuicui Exhibition Co., Ltd. Sichuan Wine and Tea InvestmentGroup Co., Ltd., Sichuan Science and Engineering Asset Management Co., Ltd., Sichuan Jingwei EducationManagement Group Co., Ltd., and Yibin Vocational & Technical College Asset Operation and Management Co.,Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co., Ltd. Its registeredcapital is RMB54 million, among which the Company contributed RMB11.25 million, taking up 20.83% of theregistered capital.
9. Other non-current financial assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Sichuan Chinese Liquor Jinshanjiao Brand Operation and Development Co., Ltd. | 1,200,000.00 | 1,200,000.00 |
| Total | 1,200,000.00 | 1,200,000.00 |
10. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 5,188,163,140.11 | 5,311,203,941.09 |
| Disposal of fixed assets | 1,754,162.06 | 1,767,504.52 |
| Total | 5,189,917,302.17 | 5,312,971,445.61 |
(1) Information on fixed assets
Unit: RMB
| Item | Buildings and constructions | Specialised equipment | General equipment | Transport equipment | Other equipment | Total |
| I Gross amount: | ||||||
| 1. Opening balance | 8,672,188,343.30 | 3,087,259,540.80 | 1,937,788,426.38 | 155,666,051.54 | 682,371,696.63 | 14,535,274,058.65 |
| 2. Increases in the current period | 36,248,138.75 | 113,409,672.96 | 168,202,053.60 | 6,951,913.82 | 58,587,903.49 | 383,399,682.62 |
| (1) Acquisition | 12,045,005.57 | 55,926,361.28 | 100,231,074.64 | 6,951,913.82 | 42,692,747.83 | 217,847,103.14 |
| (2) Transferred from construction in progress | 24,203,133.18 | 57,483,311.68 | 67,970,978.96 | 15,895,155.66 | 165,552,579.48 | |
| (3) Increase from business combination | ||||||
| 3. Decreases in the current period | 93,937,108.02 | 36,003,628.27 | 254,487,878.80 | 4,597,078.93 | 27,780,800.41 | 416,806,494.43 |
| (1) Disposed or scrapped | 93,937,108.02 | 36,003,628.27 | 254,487,878.80 | 4,597,078.93 | 27,780,800.41 | 416,806,494.43 |
| (2) Others | ||||||
| 4. Closing balance | 8,614,499,374.03 | 3,164,665,585.49 | 1,851,502,601.18 | 158,020,886.43 | 713,178,799.71 | 14,501,867,246.84 |
| II Accumulated depreciation | ||||||
| 1. Opening balance | 4,341,235,827.77 | 2,798,464,494.67 | 1,408,382,424.47 | 83,749,790.83 | 565,488,538.28 | 9,197,321,076.02 |
| 2. Increases in the current period | 244,074,245.33 | 60,741,497.61 | 84,171,844.05 | 17,806,001.41 | 34,502,171.45 | 441,295,759.85 |
| (1) Provisions | 244,074,245.33 | 60,741,497.61 | 84,171,844.05 | 17,806,001.41 | 34,502,171.45 | 441,295,759.85 |
| 3. Decreases in the current period | 46,238,107.05 | 34,210,997.56 | 240,546,415.52 | 4,268,630.54 | 26,397,620.01 | 351,661,770.68 |
| (1) Disposed or scrapped | 46,238,107.05 | 34,210,997.56 | 240,546,415.52 | 4,268,630.54 | 26,397,620.01 | 351,661,770.68 |
| 4. Closing balance | 4,539,071,966.05 | 2,824,994,994.72 | 1,252,007,853.00 | 97,287,161.70 | 573,593,089.72 | 9,286,955,065.19 |
| III Impairment allowances | ||||||
| 1. Opening balance | 15,412,584.75 | 9,953,302.88 | 911,614.26 | 471,539.65 | 26,749,041.54 | |
| 2. Increases in the current period | ||||||
| (1) Provisions | ||||||
| 3. Decreases in the current period | ||||||
| (1) Disposed or scrapped | ||||||
| 4. Closing balance | 15,412,584.75 | 9,953,302.88 | 911,614.26 | 471,539.65 | 26,749,041.54 | |
| IV Carrying amount | ||||||
| 1. Closing carrying amount | 4,060,014,823.23 | 329,717,287.89 | 598,583,133.92 | 60,733,724.73 | 139,114,170.34 | 5,188,163,140.11 |
| 2. Opening carrying amount | 4,315,539,930.78 | 278,841,743.25 | 528,494,387.65 | 71,916,260.71 | 116,411,618.70 | 5,311,203,941.09 |
(2) Fixed assets that are temporarily idle
The Company has no major fixed assets that are temporarily idle.
(3) Fixed assets leased out under operating leases
Unit: RMB
| Item | Closing carrying amount |
| Buildings and constructions | 198,083,469.54 |
(4) Fixed assets without certificate of title
Unit: RMB
| Item | Carrying amount | Reason for not obtaining certificate of title |
| Buildings and constructions | 801,384,477.47 | The certificate of title has not been obtained due to historical reasons, to which the Company has attached great importance and planned to obtain the certificate of title gradually. |
Other information:
According to the Interim Regulation on Real Estate Registration of Sichuan Province 2016, the propertyownership certificate and the land use certificate are integrated into the real estate ownership certificate. TheCompany is sorting out relevant assets and handling with the certificate of title of relevant assets.
(5) Impairment tests of fixed assets
There were no further impairments of fixed assets at the end of the current period.
(6) Disposal of fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Equipment | 1,754,162.06 | 1,767,504.52 |
| Total | 1,754,162.06 | 1,767,504.52 |
11. Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 5,620,810,349.02 | 3,770,609,910.77 |
| Engineering materials | 2,546,073.18 | 2,546,073.18 |
| Total | 5,623,356,422.20 | 3,773,155,983.95 |
(1) Construction in progress
Unit: RMB
| Project | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
| Construction in progress | 5,623,210,354.57 | 2,400,005.55 | 5,620,810,349.02 | 3,773,009,916.32 | 2,400,005.55 | 3,770,609,910.77 |
| Total | 5,623,210,354.57 | 2,400,005.55 | 5,620,810,349.02 | 3,773,009,916.32 | 2,400,005.55 | 3,770,609,910.77 |
(2) Changes in important construction in progress in the current period
Unit: RMB
| Project | Budget | Opening balance | Increase in the current period | Transferred to fixed assets in the current period | Other decreases in the current period | Closing balance | Cumulative project investment as % of the budget | Project progress | Cumulative capitalized interest | Of which: Capitalized interest in the current period | Interest capitalization rate for the current period | Funding source |
| Liquor Packaging and Integrated Smart Storage-and-delivery Project | 8,596,655,000.00 | 1,078,547,581.94 | 261,668,684.89 | 1,340,216,266.83 | 15.59% | 40.00% (note 1) | Owned and raised funds | |||||
| Baijiu Cellar Renovation Project | 1,726,166,000.00 | 803,231,249.04 | 114,495,175.79 | 917,726,424.83 | 53.17% | 98.00% | Owned and raised funds and subsidies | |||||
| Qu-making Workshop Expansion Project | 2,358,117,500.00 | 581,399.99 | 495,174,348.45 | 495,755,748.44 | 21.02% | 60.00% | Owned funds | |||||
| 100,000-ton Ecological Brewery Project (Phase I) | 1,407,954,000.00 | 45,707,989.86 | 278,631,489.50 | 324,339,479.36 | 23.04% | 75.00% | Owned funds | |||||
| 100,000-ton Ecological Brewery Project (Phase II) | 4,861,043,000.00 | 296,909.43 | 304,913,805.20 | 305,210,714.63 | 6.28% | 10.00% | Owned funds | |||||
| Wuliangye Gateway Area Project | 5,027,737,600.00 | 43,780,484.44 | 43,780,484.44 | 0.87% | 3.00% | Owned funds | ||||||
| New centralised wastewater treatment plant | 1,200,000,000.00 | 170,471.62 | 13,788,317.33 | 13,958,788.95 | 1.19% | 3.64% | Owned funds |
| Total | 25,177,673,100.00 | 1,928,535,601.88 | 1,512,452,305.60 | 3,440,987,907.48 |
Note 1: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8,596,655,000, among which the investmentin construction is RMB6,787,568,000, with RMB1,809,087,000 of initial working capital. The project has two phases. The progress of the first phase is 88%, and thesecond phase will begin at the right time according to the production and operations of the Company. The total progress of the two phases of the project is 40%.
(3) Impairment tests of construction in progress
There were no further impairments of construction in progress at the end of the current period.
(4) Engineering materials
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
| Engineering materials | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | ||
| Total | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | ||
12. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
| Item | Buildings and constructions | Specialised equipment | Transport equipment | Other equipment | Land use right | Total |
| I Gross amount | ||||||
| 1. Opening balance | 282,167,930.46 | 366,174.21 | 1,407,132.27 | 9,604,798.89 | 853,304,839.65 | 1,146,850,875.48 |
| 2. Increases in the current period | 147,869,518.09 | 220,402.19 | 148,089,920.28 | |||
| (1) Operating leases | 147,869,518.09 | 220,402.19 | 148,089,920.28 | |||
| 3. Decreases in the current period | 166,591,437.05 | 9,825,201.08 | 572,125,753.41 | 748,542,391.54 | ||
| (1) Expiry or termination of leases | 166,591,437.05 | 9,825,201.08 | 572,125,753.41 | 748,542,391.54 | ||
| 4. Closing balance | 263,446,011.50 | 366,174.21 | 1,407,132.27 | 281,179,086.24 | 546,398,404.22 | |
| II Accumulated depreciation | ||||||
| 1. Opening balance | 190,200,964.04 | 203,430.15 | 845,659.32 | 7,435,973.29 | 567,241,962.84 | 765,927,989.64 |
| 2. Increases in the current period | 103,113,322.85 | 122,058.04 | 124,771.80 | 2,389,227.79 | 286,062,876.81 | 391,812,257.29 |
| (1) Provisions | 103,113,322.85 | 122,058.04 | 124,771.80 | 2,389,227.79 | 286,062,876.81 | 391,812,257.29 |
| 3. Decreases in the current period | 156,201,203.71 | 9,825,201.08 | 572,125,753.41 | 738,152,158.20 | ||
| (1) Disposal | ||||||
| (2) Expiry or termination of leases | 156,201,203.71 | 9,825,201.08 | 572,125,753.41 | 738,152,158.20 | ||
| 4. Closing balance | 137,113,083.18 | 325,488.19 | 970,431.12 | 281,179,086.24 | 419,588,088.73 | |
| III Impairment allowances | ||||||
| 1. Opening balance | ||||||
| 2. Increases in the current period | ||||||
| (1) Provisions | ||||||
| 3. Decreases in the current period | ||||||
| (1) Disposal | ||||||
| 4. Closing balance | ||||||
| IV Carrying amount | ||||||
| 1. Closing carrying amount | 126,332,928.32 | 40,686.02 | 436,701.15 | 126,810,315.49 | ||
| 2. Opening carrying amount | 91,966,966.42 | 162,744.06 | 561,472.95 | 2,168,825.60 | 286,062,876.81 | 380,922,885.84 |
(2) Impairment tests of right-of-use assets
There were no impairments of right-of-use assets at the end of the current period.
13. Intangible assets
(1) Intangible assets
Unit: RMB
| Item | Land use right | Patents | Non-patent technology | Software system | Technology use right | Copyright | Total |
| I Gross amount | |||||||
| 1. Opening balance | 487,977,253.67 | 290,444,383.83 | 10,391,942.73 | 8,066,037.47 | 796,879,617.70 | ||
| 2. Increases in the current period | 1,538,491,812.48 | 110,112,522.48 | 1,648,604,334.96 | ||||
| (1) Acquisition | 1,538,491,812.48 | 110,112,522.48 | 1,648,604,334.96 | ||||
| (2) Internal research and development | |||||||
| (3) Increase from business combination | |||||||
| 3. Decreases in the current period | 427,876.28 | 2,674,547.11 | 3,102,423.39 | ||||
| (1) Disposal | 427,876.28 | 2,674,547.11 | 3,102,423.39 | ||||
| 4. Closing balance | 2,026,041,189.87 | 397,882,359.20 | 10,391,942.73 | 8,066,037.47 | 2,442,381,529.27 | ||
| II Accumulated amortization | |||||||
| 1. Opening balance | 134,661,159.19 | 128,785,142.71 | 10,344,725.85 | 4,570,754.64 | 278,361,782.39 | ||
| 2. Increases in the current period | 44,950,234.03 | 63,256,579.12 | 7,358.52 | 1,613,207.52 | 109,827,379.19 | ||
| (1) Provisions | 44,950,234.03 | 63,256,579.12 | 7,358.52 | 1,613,207.52 | 109,827,379.19 | ||
| 3. Decreases in the current period | 106,969.07 | 2,571,302.27 | 2,678,271.34 | ||||
| (1) Disposal | 106,969.07 | 2,571,302.27 | 2,678,271.34 |
| 4. Closing balance | 179,504,424.15 | 189,470,419.56 | 10,352,084.37 | 6,183,962.16 | 385,510,890.24 | ||
| III Impairment allowances | |||||||
| 1. Opening balance | |||||||
| 2. Increases in the current period | |||||||
| (1) Provisions | |||||||
| 3. Decreases in the current period | |||||||
| (1) Disposal | |||||||
| 4. Closing balance | |||||||
| IV Carrying amount | |||||||
| 1. Closing carrying amount | 1,846,536,765.72 | 208,411,939.64 | 39,858.36 | 1,882,075.31 | 2,056,870,639.03 | ||
| 2. Opening carrying amount | 353,316,094.48 | 161,659,241.12 | 47,216.88 | 3,495,282.83 | 518,517,835.31 |
The increase in intangible assets during the current period was primarily driven by the increased land userights for the new Wuliangye Gateway Area Project, with a gross amount of RMB1,305 million.There were no intangible assets created by internal research and development of the Company at the end ofthe current period.
(2) Land use right failed to accomplish certification of property
Unit: RMB
| Item | Carrying amount | Reason for failing to accomplish certification of property |
| Land of the Wuliangye Gateway Area Project | 1,275,190,627.84 | Certification of property has not yet started for the construction planning is still being optimized. |
(3) Impairment tests of intangible assets
There were no impairments of intangible assets at the end of the current period.
14. Goodwill
(1) Gross amounts of goodwill
Unit: RMB
| Investee or item generating goodwill | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Generated due to business combination | Disposal | |||||
| Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | 37,535.96 | 37,535.96 | ||||
| Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | 18,005.18 | 18,005.18 | ||||
| Sichuan Yibin Plastic Packaging Materials Company Limited | 666,461.77 | 666,461.77 | ||||
| Sichuan Yibin Push Group 3D Co., Ltd. | 899,616.62 | 899,616.62 | ||||
| Total | 1,621,619.53 | 1,621,619.53 |
15. Long-term prepaid expense
Unit: RMB
| Item | Opening balance | Increase in the current period | Amortization in the current period | Other decreases | Closing balance |
| Molds | 135,614,953.60 | 65,312,393.95 | 64,082,937.14 | 136,844,410.41 | |
| Overhaul expenses of kilns | 19,842,079.24 | 9,994,734.58 | 9,874,931.43 | 19,961,882.39 | |
| Others | 3,129,294.22 | 4,381,835.03 | 1,197,398.19 | 6,313,731.06 | |
| Total | 158,586,327.06 | 79,688,963.56 | 75,155,266.76 | 163,120,023.86 |
Other notes: Long-term prepaid expense include the molds of Sichuan Yibin Plastic Packaging MaterialsCompany Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan Yibin GlobalGelasi Glass Manufacturing Co., Ltd., which will be amortized in three years and four years, respectively.
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Asset impairment allowances | 97,497,278.56 | 19,252,967.78 | 97,653,716.96 | 24,413,429.24 |
| Unrealized profit of internal transactions | 1,188,281,924.48 | 297,070,481.12 | 1,138,589,500.24 | 284,647,375.06 |
| Employee benefits payable | 3,490,817,759.43 | 872,704,439.86 | 3,102,191,751.36 | 775,547,937.84 |
| Lease liabilities (inclusive of the current portion) | 130,235,057.60 | 32,558,764.42 | 392,658,748.50 | 97,199,370.96 |
| Accrued expenses, etc. | 4,084,095,658.56 | 1,021,023,914.64 | 3,833,924,325.92 | 958,481,081.48 |
| Total | 8,990,927,678.63 | 2,242,610,567.82 | 8,565,018,042.98 | 2,140,289,194.58 |
(2) Deferred income tax liabilities which have not been offset
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Right-of-use assets | 126,810,315.49 | 31,702,578.88 | 380,922,885.84 | 94,360,946.95 |
| Total | 126,810,315.49 | 31,702,578.88 | 380,922,885.84 | 94,360,946.95 |
(3) Details about deferred income tax assets which have not been recognized
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary differences | 2,210,106.17 | 3,304,671.54 |
| Deductible losses | 238,826,934.43 | 177,260,671.19 |
| Total | 241,037,040.60 | 180,565,342.73 |
Notes: Due to the uncertainty of whether sufficient taxable income will be obtained in the future, deductibletemporary differences and deductible losses of deferred income tax assets are not recognized.
(4) Deductible losses of deferred income tax assets which have not been recognized will become due in thefollowing years
Unit: RMB
| Year | Closing amount | Opening amount | Remarks |
| 2023 | 81,171,553.38 | ||
| 2024 | 37,175,954.09 | 37,175,954.09 | |
| 2025 | 26,822,159.35 | 26,822,159.35 | |
| 2026 | |||
| 2027 | 31,108,726.70 | 32,091,004.37 | |
| 2028 | 143,720,094.29 | ||
| Total | 238,826,934.43 | 177,260,671.19 |
17. Other non-current assets
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
| Advances of progress payment for information system construction | 197,884,442.32 | 197,884,442.32 | 246,955,204.05 | 246,955,204.05 | ||
| Prepayments for land bids | 617,111,764.28 | 617,111,764.28 | 725,547,470.92 | 725,547,470.92 | ||
| Prepayments for equipment | 9,821,017.69 | 9,821,017.69 | ||||
| Total | 824,817,224.29 | 824,817,224.29 | 972,502,674.97 | 972,502,674.97 | ||
Other information:
The prepayments for land bids mainly included the prepayments to the Yibin Natural Resources andPlanning Bureau and the Yibin Public Resources Trading Centre for the transfer of land for the Wuliangye 501Ancient Fermentation Pits-Chinese Baijiu Cultural Sanctuary Project.
18. Assets with restricted ownership or rights-of-use
Unit: RMB
| Item | At the end of the current period | At the beginning of the current period | ||||||
| Gross amount | Carrying amount | Type of restriction | Restriction | Gross amount | Carrying amount | Type of restriction | Restriction | |
| Monetary assets | 200,977,259.48 | 200,977,259.48 | Security deposit, etc. | Security deposits for bank acceptance bills, other security deposits, and the balance in the securities trading account with the Yibin | 192,532,713.23 | 192,532,713.23 | Security deposit, etc. | Security deposits for bank acceptance bills, other security deposits, and the balance in the securities trading account with the Yibin Business Department of Essence Securities |
| Business Department of Essence Securities | ||||||||
| Receivables financing | 117,021,640.00 | 117,021,640.00 | In pledge | In pledge for bank acceptance bills | ||||
| Total | 200,977,259.48 | 200,977,259.48 | 309,554,353.23 | 309,554,353.23 |
19. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Bank acceptance notes | 732,432,611.26 | 886,789,180.37 |
| Letters of credit | 1,181,196.16 | |
| Total | 732,432,611.26 | 887,970,376.53 |
There were no notes payable which became mature but were unpaid at the end of the current period.
20. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Accounts payable | 8,864,206,997.09 | 7,246,802,709.58 |
| Total | 8,864,206,997.09 | 7,246,802,709.58 |
(2) Significant accounts payable that are over one year or overdue
There were no significant accounts payable that were over 1 year or overdue at the end of the currentperiod.
21. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest payable | ||
| Dividends payable | 13,191,392.99 | |
| Other payables | 5,385,776,903.69 | 4,618,243,522.44 |
| Total | 5,385,776,903.69 | 4,631,434,915.43 |
(1) Dividends payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends payable by subsidiaries to non-controlling shareholders | 13,191,392.99 | |
| Total | 13,191,392.99 |
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Image publicity expense and sales promotional expense | 3,641,584,720.31 | 2,974,372,546.57 |
| Security deposits | 961,975,482.82 | 1,059,053,791.82 |
| Frozen funds | 272,831,242.15 | 254,603,170.35 |
| Collecting payment on behalf of others | 116,936,716.76 | 79,272,558.15 |
| Claims from safeguarding rights | 32,741,432.38 | 31,207,782.63 |
| Others | 359,707,309.27 | 219,733,672.92 |
| Total | 5,385,776,903.69 | 4,618,243,522.44 |
2) Significant other payables that are over one year or overdue
Unit: RMB
| Item | Closing balance | Reason for unsettlement or carryforward |
| Frozen funds | 248,322,766.21 | |
| Total | 248,322,766.21 |
22. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers | 17,522,814.61 | 16,160,671.49 |
| Total | 17,522,814.61 | 16,160,671.49 |
There were no significant advances from customers that were over 1 year or overdue at the end of thecurrent period.
23. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers | 6,864,383,635.25 | 12,379,125,542.70 |
| Total | 6,864,383,635.25 | 12,379,125,542.70 |
There were no significant contract liabilities that were over 1 year at the end of the current period.The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
Presented by aging:
Unit: RMB
| Aging | Gross amount |
| Within 1 year | 6,632,891,591.37 |
| 1 to 2 years | 55,980,731.08 |
| 2 to 3 years | 32,663,322.45 |
| More than 3 years | 142,847,990.35 |
| Total | 6,864,383,635.25 |
Top five entities with respect to contract liabilities at the end of the current period:
The aggregate amount of the contract liabilities of the top five entities stood at RMB1,631,958,406.45 at theend of the current period, accounting for 23.77% of the total contract liabilities at the end of the current period.
24. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I Short-term remuneration | 3,374,370,891.04 | 7,252,148,332.40 | 6,754,410,846.67 | 3,872,108,376.77 |
| II Post-employment benefits - defined contribution plans | 155,938.84 | 1,174,426,080.45 | 1,174,567,959.63 | 14,059.66 |
| III Dismissal benefits | 1,000,000.00 | 1,000,000.00 | ||
| Total | 3,375,526,829.88 | 8,426,574,412.85 | 7,929,978,806.30 | 3,872,122,436.43 |
(2) Presentation of short-term remuneration
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Salaries, bonuses, allowances and subsidies | 3,260,401,184.55 | 6,043,450,549.16 | 5,493,073,064.22 | 3,810,778,669.49 |
| 2. Employee benefits | 122,008,421.68 | 122,008,421.68 | ||
| 3. Social insurance charges | 165,839.00 | 387,295,206.13 | 387,306,366.48 | 154,678.65 |
| Including: Medical insurance premium | 154,486.34 | 347,806,598.90 | 347,806,598.90 | 154,486.34 |
| Industrial injury insurance premium | 11,267.80 | 38,986,924.35 | 38,998,084.70 | 107.45 |
| Birth insurance premium | 84.86 | 501,682.88 | 501,682.88 | 84.86 |
| 4. Housing provident fund | 93,999,694.00 | 573,829,819.64 | 631,161,145.64 | 36,668,368.00 |
| 5. Labor union expenditure and personnel educational fund | 19,804,173.49 | 125,564,335.79 | 120,861,848.65 | 24,506,660.63 |
| Total | 3,374,370,891.04 | 7,252,148,332.40 | 6,754,410,846.67 | 3,872,108,376.77 |
(3) Presentation of defined contribution plans
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Basic pension insurance | 150,836.38 | 742,608,790.54 | 742,745,567.26 | 14,059.66 |
| 2. Unemployment insurance premium | 5,102.46 | 27,770,183.44 | 27,775,285.90 | |
| 3. Corporate pension contribution | 404,047,106.47 | 404,047,106.47 | ||
| Total | 155,938.84 | 1,174,426,080.45 | 1,174,567,959.63 | 14,059.66 |
25. Taxes and levies payable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 1,287,318,757.45 | 1,081,836,866.14 |
| Consumption tax | 1,576,918,931.41 | 921,407,756.36 |
| Corporate income tax | 2,936,171,629.30 | 3,017,389,769.33 |
| Individual income tax | 57,956,239.44 | 26,308,217.47 |
| Urban maintenance and construction tax | 207,087,550.24 | 143,754,429.94 |
| Education surcharge | 89,319,297.77 | 62,118,360.81 |
| Local education surcharge | 59,551,377.32 | 41,417,432.28 |
| Deed tax | 44,169,896.88 | |
| Stamp duty | 8,857,961.71 | 6,357,506.98 |
| Land use tax | 669,153.14 | 669,153.14 |
| Property tax | 425,171.77 | 441,068.14 |
| Environmental protection tax | 12,179.34 | 17,625.34 |
| Total | 6,268,458,145.77 | 5,301,718,185.93 |
Other information: The taxes and levies of the Company depend on the amount verified and imposed by thetax authorities.
26. Current portion of non-current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Current portion of lease liabilities | 14,512,448.92 | 375,682,599.77 |
| Total | 14,512,448.92 | 375,682,599.77 |
27. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Output tax to be transferred | 663,723,991.63 | 1,544,723,419.34 |
| Total | 663,723,991.63 | 1,544,723,419.34 |
28. Lease liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Lease liabilities | 115,722,608.68 | 16,976,148.73 |
| Total | 115,722,608.68 | 16,976,148.73 |
29. Deferred income
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause |
| Government grants | 254,416,864.75 | 10,383,695.10 | 11,757,234.48 | 253,043,325.37 | |
| Total | 254,416,864.75 | 10,383,695.10 | 11,757,234.48 | 253,043,325.37 | -- |
30. Share capital
Unit: RMB
| Opening balance | Increase/decrease in the current period (+/-) | Closing balance | |||||
| New issue | Bonus issue from profit | Bonus issue from capital reserves | Others | Subtotal | |||
| Total shares | 3,881,608,005.00 | 3,881,608,005.00 | |||||
31. Capital reserves
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital premium (share premium) | 2,682,523,702.98 | 2,682,523,702.98 | ||
| Other capital reserves | 123,383.17 | 123,383.17 | ||
| Total | 2,682,647,086.15 | 2,682,647,086.15 |
32. Surplus reserves
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserves | 28,432,482,367.38 | 5,156,071,135.43 | 33,588,553,502.81 | |
| Total | 28,432,482,367.38 | 5,156,071,135.43 | 33,588,553,502.81 |
33. Retained earnings
Unit: RMB
| Item | 2023 | 2022 |
| Retained earnings at the end of the prior period before adjustment | 79,028,605,172.04 | 68,638,139,859.37 |
| Total retained earnings at the beginning of the period before adjustment (“+” for increase, “-” for decrease) | 2,554,581.61 | 3,164,556.82 |
| Retained earnings at the beginning of the period after adjustment | 79,031,159,753.65 | 68,641,304,416.19 |
| Plus: Net profit attributable to owners of the Company as the parent in the current period | 30,210,585,269.30 | 26,689,983,647.20 |
| Less: Appropriation to statutory surplus reserves | 5,156,071,135.43 | 4,566,027,354.25 |
| Dividends payable to ordinary shareholders | 14,680,241,440.97 | 11,734,100,955.49 |
| Retained earnings at the end of the period | 89,405,432,446.55 | 79,031,159,753.65 |
Adjustments to the retained earnings at the beginning of the period:
1) The retained earnings at the beginning of the period are adjusted by RMB2,554,581.61 due to theretroactive adjustment according to the Accounting Standards for Business Enterprises and relevant newprovisions.
2) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes inaccounting policies.
3) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to correction of majoraccounting errors.
4) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes in thecombination scope arising from the same control.
5) The retained earnings at the beginning of the period are adjusted by RMB0.00 in total due to otheradjustments.
34. Operating revenue and cost of sales
Unit: RMB
| Item | 2023 | 2022 |
| Revenue | Costs | Revenue | Costs | |
| Principal operations | 82,695,377,235.30 | 19,748,584,265.47 | 73,363,741,120.87 | 17,732,568,111.41 |
| Other operations | 576,690,081.89 | 408,559,686.74 | 604,899,583.67 | 445,857,548.23 |
| Total | 83,272,067,317.19 | 20,157,143,952.21 | 73,968,640,704.54 | 18,178,425,659.64 |
Whether the lower of net profit before or after exceptional gains and losses is negative
□ Yes ? No
Breakdown of operating revenue and cost of sales of liquor products in the current period:
Unit: RMB
| Type of contract | Liquor products | |
| Operating revenue | Cost of sales | |
| By operating segment | ||
| East China | 22,388,529,236.37 | 3,340,594,216.75 |
| South China | 6,810,441,782.70 | 993,558,777.69 |
| West China | 26,215,491,173.54 | 6,047,557,225.84 |
| North China | 8,074,372,025.55 | 1,147,821,771.10 |
| Central China | 12,958,259,027.46 | 2,295,397,807.81 |
| By sales channel | ||
| Online | 4,165,629,988.73 | 539,414,059.41 |
| Offline | 72,281,463,256.89 | 13,285,515,739.78 |
| Total | 76,447,093,245.62 | 13,824,929,799.19 |
Information related to performance obligations:
Revenue is recognized at the point when the Company completes its contractual performance obligationswhen the customer obtains control of the goods to which it belongs in the contractual agreement.Information related to the transaction price apportioned to the remaining performance obligation:
The amount of revenue corresponding to performance obligations that have been contracted but not yetperformed or not completed at the end of the Reporting Period was RMB6,864,383,635.25.
35. Tax and surcharges
Unit: RMB
| Item | 2023 | 2022 |
| Consumption tax | 10,073,003,802.01 | 8,653,332,472.22 |
| Urban maintenance and construction tax | 1,321,451,792.67 | 1,132,484,875.40 |
| Education surcharge | 560,138,465.48 | 486,699,510.87 |
| Tax on natural resources | 79,839.10 | 92,594.00 |
| Property tax | 45,963,481.48 | 47,802,066.72 |
| Land use tax | 78,671,329.71 | 48,955,268.10 |
| Vehicle and vessel usage tax | 87,935.59 | 105,993.23 |
| Stamp duty | 65,275,884.86 | 54,296,957.03 |
| Local education surcharge | 386,193,282.49 | 324,466,433.74 |
| Environmental protection tax | 829,815.03 | 566,205.73 |
| Total | 12,531,695,628.42 | 10,748,802,377.04 |
36. Administrative expenses
Unit: RMB
| Item | 2023 | 2022 |
| Comprehensive expenses of the Company (including travel, office, | 1,439,311,083.54 | 1,302,358,844.82 |
| expenses of the Board of Directors, employee remuneration, labor insurance, labor protection appliances, etc.) | ||
| Rents | 12,276,646.11 | 12,138,843.91 |
| Trademark and logo royalties | 966,368,193.34 | 863,873,404.43 |
| Comprehensive service fee | 86,669,431.21 | 78,322,182.60 |
| Others | 814,819,985.57 | 811,425,992.69 |
| Total | 3,319,445,339.77 | 3,068,119,268.45 |
37. Selling expenses
Unit: RMB
| Item | 2023 | 2022 |
| Image publicity expense | 1,433,975,889.27 | 1,240,440,205.34 |
| Sales promotional expense | 4,540,282,674.32 | 3,889,326,216.67 |
| Storage and logistics expenses | 546,674,750.94 | 476,754,635.74 |
| Expenses of labor | 735,243,412.93 | 718,179,395.38 |
| Other expenses | 540,121,690.67 | 519,536,560.04 |
| Total | 7,796,298,418.13 | 6,844,237,013.17 |
38. Research and development expense
Unit: RMB
| Item | 2023 | 2022 |
| Comprehensive expenses (including travel, office, payroll, labor insurance, labor protection appliances, etc.) | 198,867,638.61 | 159,734,978.88 |
| Material expenses | 40,610,966.53 | 24,305,191.52 |
| Product design fees | 11,372,974.54 | 14,835,860.22 |
| Depreciation and amortization expenses | 21,051,089.93 | 15,940,284.31 |
| Technical service expenses | 16,761,748.34 | 3,774,509.39 |
| Others | 33,180,747.33 | 17,192,821.47 |
| Total | 321,845,165.28 | 235,783,645.79 |
39. Finance costs
Unit: RMB
| Item | 2023 | 2022 |
| Interest costs | 11,618,338.87 | 48,003,667.91 |
| Less: Interest income | 2,487,953,643.33 | 2,075,700,630.12 |
| Exchange loss | 162,763.33 | 394,735.15 |
| Less: Exchange gains | 867,465.32 | 509,873.32 |
| Service charge of financial institutions | 2,314,624.32 | 1,903,782.68 |
| Others | 1,554,705.86 | -442,730.22 |
| Total | -2,473,170,676.27 | -2,026,351,047.92 |
40. Other income
Unit: RMB
| Sources of other income | 2023 | 2022 |
| Government subsidies | 236,257,100.25 | 100,421,839.81 |
| Tax rebates | 83,435,000.00 | 72,322,800.00 |
| Tax preferences | 10,978,103.25 | 13,781,264.60 |
| Total | 330,670,203.50 | 186,525,904.41 |
41. Return on investment
Unit: RMB
| Item | 2023 | 2022 |
| Return on long-term equity investments measured using the equity method | 57,617,083.91 | 92,571,951.15 |
| Total | 57,617,083.91 | 92,571,951.15 |
42. Credit impairment loss
Unit: RMB
| Item | 2023 | 2022 |
| Loss on uncollectible accounts receivable | 840,903.29 | 284,297.70 |
| Loss on uncollectible other receivables | -1,613,094.58 | -1,722,230.36 |
| Total | -772,191.29 | -1,437,932.66 |
43. Asset impairment loss
Unit: RMB
| Item | 2023 | 2022 |
| Inventory valuation loss and impairment loss on contract performance costs | -3,932,827.97 | -5,552,799.12 |
| Impairment loss on fixed assets | -20,654,660.75 | |
| Total | -3,932,827.97 | -26,207,459.87 |
44. Asset disposal income
Unit: RMB
| Source of asset disposal income | 2023 | 2022 |
| Disposal of non-current assets | 1,272,004.07 | 3,347,202.23 |
| Total | 1,272,004.07 | 3,347,202.23 |
45. Non-operating income
Unit: RMB
| Item | 2023 | 2022 | Amounts included in current exceptional profit or loss |
| Penalty income | 16,128,158.86 | 7,902,851.31 | 16,128,158.86 |
| Gains from scrap of non-current assets | 223,214.40 | 4,916,136.57 | 223,214.40 |
| Others | 29,000,303.43 | 26,066,282.98 | 29,000,303.43 |
| Total | 45,351,676.69 | 38,885,270.86 | 45,351,676.69 |
46. Non-operating expense
Unit: RMB
| Item | 2023 | 2022 | Amounts included in current exceptional profit or loss |
| Donations | 49,212,109.00 | 57,541,747.10 | 49,212,109.00 |
| Penalty expenditure | 958,262.48 | 578,945.52 | 958,262.48 |
| Sponsorship expenditure | 1,000,000.00 | ||
| Loss on scrap of non-current assets | 52,045,444.77 | 5,981,101.42 | 52,045,444.77 |
| Exceptional loss | 783,415.71 | 198,610.78 | 783,415.71 |
| Others | 33,334,262.96 | 44,487,603.43 | 33,334,262.96 |
| Total | 136,333,494.92 | 109,788,008.25 | 136,333,494.92 |
Other information: The donations mainly consisted of RMB27.41 million to Sichuan Wuliangye CharityFoundation and RMB20 million for Sichuan University Education Foundation.
47. Income tax expense
(1) List of income tax expense
Unit: RMB
| Item | 2023 | 2022 |
| Current income tax expense | 10,556,884,102.80 | 9,492,020,759.10 |
| Deferred income tax expense | -164,979,741.31 | -358,285,618.13 |
| Total | 10,391,904,361.49 | 9,133,735,140.97 |
(2) Reconciliation from accounting profit to income tax expense
Unit: RMB
| Item | 2023 |
| Gross profit | 41,912,681,943.64 |
| Income tax expense based on the statutory/applicable tax rates | 10,478,170,485.91 |
| Effects of different tax rates of subsidiaries | -110,497,338.45 |
| Effects of adjustments to income tax of the prior period | 28,847,896.35 |
| Effects of non-taxable revenue | -14,404,270.98 |
| Effects of non-deductible costs, expenses and losses | 25,066,594.26 |
| Effects of the utilization of deductible losses on which deferred income tax assets were unrecognized in the prior period | -669,965.33 |
| Effects of deductible temporary differences or losses on which deferred income tax assets are unrecognized in the current period | 35,656,382.23 |
| Effects of the utilization of temporary differences on which deferred income tax assets were unrecognized in the prior period | |
| Effects of the over-deduction in the calculation of the taxable amount in relation to wages for the disabled employees | -20,349,586.03 |
| Effects of the 10% preferential income tax rate for stream revenue | |
| Effects of the over-deduction in the calculation of the taxable amount in relation to R&D expense | -30,349,343.98 |
| Effects of the one-time deduction of fixed assets | 433,507.51 |
| Income tax expense | 10,391,904,361.49 |
48. Cash flow statement items
(1) Cash generated from/used in operating activities
Cash generated from other operating activities:
Unit: RMB
| Item | 2023 | 2022 |
| Interest income | 1,909,564,581.37 | 1,547,650,473.84 |
| Security deposits and government grants received | 419,279,720.66 | 458,546,814.57 |
| Total | 2,328,844,302.03 | 2,006,197,288.41 |
Cash used in other operating activities:
Unit: RMB
| Item | 2023 | 2022 |
| Expenses relating to selling | 3,632,952,007.86 | 2,284,853,859.19 |
| Comprehensive service fee | 86,669,431.21 | 78,322,182.60 |
| Trademark and logo royalties | 966,368,193.34 | 863,873,404.43 |
| Security deposits paid, payments for current transactions, and other out-of-pocket expenses | 1,134,109,493.45 | 1,141,487,988.23 |
| Total | 5,820,099,125.86 | 4,368,537,434.45 |
(2) Cash generated from/used in investing activities
Cash used in significant investing activities:
Unit: RMB
| Item | 2023 | 2022 |
| Wuliangye Gateway Area Project | 627,150,000.00 | 639,693,000.00 |
| Wuliangye 501 Ancient Fermentation Pits-Chinese Baijiu Cultural Sanctuary Project | 590,314,100.00 | |
| Liquor Packaging and Integrated Smart Storage-and-delivery Project | 148,811,122.97 | 329,962,058.24 |
| Qu-making Workshop Expansion Project | 402,629,618.92 | 11,270,239.88 |
100,000-ton Ecological Brewery Project (Phase I)
| 100,000-ton Ecological Brewery Project (Phase I) | 199,068,578.65 | 32,876,521.83 |
| 100,000-ton Ecological Brewery Project (Phase II) | 336,379,205.24 | 74,655,448.64 |
| Total | 2,304,352,625.78 | 1,088,457,268.59 |
(3) Cash generated from/used in financing activities
Cash used in other financing activities:
Unit: RMB
| Item | 2023 | 2022 |
| Payment for the lease liabilities | 428,610,750.02 | 402,860,485.37 |
| Payments to non-controlling shareholders of subsidiaries for distribution of residual assets in the liquidation and de-registration of subsidiaries | 21,148,883.78 | |
| Total | 428,610,750.02 | 424,009,369.15 |
Changes in liabilities as a result of financing activities:
□ Applicable ? Not applicable
49. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
| Supplementary information | 2023 | 2022 |
| 1. Reconciliation of net profit to net cash generated from/used in |
| operating activities | ||
| Net profit | 31,520,777,582.15 | 27,969,785,575.27 |
| Add: Asset impairment allowances | -1,251,003.77 | 20,844,584.71 |
| Depreciation of fixed assets, depletion of oil and gas assets, and depreciation of productive living assets | 441,295,759.85 | 440,948,448.61 |
| Depreciation of right-of-use assets | 391,812,257.29 | 388,275,480.31 |
| Amortization of intangible assets | 73,861,098.14 | 63,957,908.47 |
| Amortization of long-term prepaid expense | 75,155,266.76 | 72,008,715.93 |
| Loss on the disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) | -1,272,004.07 | -3,347,202.23 |
| Loss on the retirement of fixed assets (“-” for gain) | 51,822,230.37 | 1,064,964.85 |
| Loss on changes in fair value (“-” for gain) | ||
| Finance costs (“-” for income) | 10,991,017.91 | 47,867,401.72 |
| Loss on investment (“-” for income) | -57,617,083.91 | -92,571,951.15 |
| Decrease in deferred income tax assets (“-” for increase) | -102,321,373.24 | -322,329,799.81 |
| Increase in deferred income tax liabilities (“-” for decrease) | -62,658,368.07 | -35,955,818.32 |
| Decrease in inventories (“-” for increase) | -1,405,578,216.46 | -1,964,349,766.62 |
| Decrease in operating receivables (“-” for increase) | 14,309,794,523.00 | -3,969,465,671.49 |
| Increase in operating payables (“-” for decrease) | -3,502,331,777.72 | 1,814,403,391.23 |
| Others | ||
| Net cash generated from/used in operating activities | 41,742,479,908.23 | 24,431,136,261.48 |
| 2. Significant investing and financing activities that involve no cash proceeds or payments | ||
| Conversion of debt to capital | ||
| Current portion of convertible corporate bonds | ||
| Fixed assets under finance leases | ||
| 3. Net changes in cash and cash equivalents： | ||
| Closing balance of cash | 113,095,684,224.30 | 90,584,643,897.66 |
| Less: Opening balance of cash | 90,584,643,897.66 | 80,975,257,378.72 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 22,511,040,326.64 | 9,609,386,518.94 |
(2) Composition of cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I Cash | 113,095,684,224.30 | 90,584,643,897.66 |
| Of which: Cash on hand | 42,156.81 | 19,772.01 |
| Bank deposits that can be readily drawn on demand | 113,032,146,687.11 | 90,562,914,574.52 |
| Other monetary assets that can be readily drawn on demand | 63,495,380.38 | 21,709,551.13 |
| III Cash and cash equivalents, end of the period | 113,095,684,224.30 | 90,584,643,897.66 |
(3) Monetary assets that do not belong to cash and cash equivalents
Unit: RMB
| Item | 2023 | 2022 | Reason for not belong to cash and cash equivalents |
| Security deposits for bank acceptance bills, etc. | 200,977,259.48 | 192,532,713.23 | Restricted use |
| Accrued interest on term deposits | 2,159,639,426.86 | 1,581,250,364.90 | Accrued interest |
| Total | 2,360,616,686.34 | 1,773,783,078.13 |
50. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
| Item | Closing balance in foreign currency | Exchange rate | Closing balance in RMB |
| Monetary assets | |||
| Of which: USD | 137,664.39 | 7.0827 | 975,035.58 |
| EUR | |||
| HKD | |||
| Accounts receivable | |||
| Of which: USD | |||
| EUR | |||
| HKD | |||
| Long-term borrowings | |||
| Of which: USD | |||
| EUR | |||
| HKD | |||
(2) Overseas business entities (for substantial overseas business entities, the following information shall bedisclosed: principal place of business, functional currency and basis for the choice, change of functionalcurrency and reasons)
□ Applicable ? Not applicable
51. Leases
(1) The Company as the lessee
? Applicable □ Not applicableVariable lease payments not included in lease liabilities:
? Applicable □ Not applicable
Unit: RMB
| Item | 2023 |
| Variable lease payments not included in lease liabilities | 216,068,216.19 |
Expenses on short-term leases or leases of low-value assets:
? Applicable □ Not applicable
Unit: RMB
| Item | 2023 |
| Expenses on short-term leases or leases of low-value assets | 30,398,754.21 |
(2) The Company as the lessor
Operating leases with the Company as the lessor:
? Applicable □ Not applicable
Unit: RMB
| Item | Lease income | Of which: Income related to variable lease payments not included in lease receipts |
| Income from operating leases | 4,228,797.39 | |
| Total | 4,228,797.39 |
Finance leases with the Company as the lessor:
□ Applicable ? Not applicable
Yearly undiscounted lease receipts in the coming five years:
□ Applicable ? Not applicable
Reconciliation from undiscounted lease receipts to net return on leases:
(3) Recognition of gains and losses on sales under finance leases as a producer or distributor
□ Applicable ? Not applicable
VIII R&D Expenditures
Unit: RMB
| Item | 2023 | 2022 |
| Comprehensive expenses (including travel, office, payroll, labor insurance, labor protection appliances, etc.) | 198,867,638.61 | 159,734,978.88 |
| Material expenses | 40,610,966.53 | 24,305,191.52 |
| Product design fees | 11,372,974.54 | 14,835,860.22 |
| Depreciation and amortization expenses | 21,051,089.93 | 15,940,284.31 |
| Technical service expenses | 16,761,748.34 | 3,774,509.39 |
| Others | 33,180,747.33 | 17,192,821.47 |
| Total | 321,845,165.28 | 235,783,645.79 |
| Of which: expensed R&D expenditures | 321,845,165.28 | 235,783,645.79 |
1. Significant outsourced R&D projects
The Company had no significant outsourced R&D projects.IX Changes to the Scope of the Consolidated Financial Statements
1. Business combinations involving entities not under common control
(1) Business combinations involving entities not under common control in the current period
There were no business combinations involving entities not under common control in the Reporting Period.
2. Business combinations involving entities under common control
(1) Business combinations involving entities under common control in the current period
There were no business combinations involving entities under common control in the Reporting Period.
3. Counter purchase
There was no subsidiary acquired by counter purchase during the Reporting Period.
4. Disposal of subsidiary
There was no disposal of subsidiaries during the Reporting Period.
5. Changes in the consolidation scope for other reasons
Changes in the consolidation scope for other reasons (incorporation or liquidation of subsidiary, etc.):
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, theCompany has strengthened the disposal of less competitive business entities that are not part of its principaloperations. The Company’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in2023.As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, theCompany’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited hasincorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’anPlastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’anPlastic.
X Interests in Other Entities
1. Interests in subsidiaries
(1) Compositions of the Group
Unit: RMB
| Subsidiary | Registered capital | Principal place of business | Place of registration | Nature of business | The Company’s interest | How the subsidiary was obtained | |
| Direct | Indirect | ||||||
| Sichuan Yibin Wuliangye Distillery Co., Ltd. | 85,000,000 | Yibin | Yibin | Manufacturing | 99.00% | 0.99% | Incorporated |
| Yibin Wuliangye Liquor Sales Co., Ltd. | 200,000,000 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. | 20,000,000 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Yibin Wuliangchun Brand Marketing Co., Ltd | 20,000,000 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. | 20,000,000 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | 30,000,000 | Yibin | Yibin | Commercial | 99.00% | 0.95% | Incorporated |
| Yibin Jiangjiu Liquor Co., Ltd. | 50,000,000 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | 537,000,000 | Yibin | Yibin | Manufacturing | 51.00% | Incorporated | |
| Sichuan Jinwuxin Technology Co., Ltd. | 14,000,000 | Yibin | Yibin | Commercial | 51.00% | Business combination involving entities not under common control | |
| Sichuan Jiebeike Environmental Technology Co., Ltd. | 10,000,000 | Yibin | Yibin | Engineering | 26.01% | Incorporated | |
| Yibin Changjiangyuan Liquor Co., Ltd. | 20,000,000 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Yibin Changjiangyuan Trade Co., Ltd. | 19,800,000 | Yibin | Yibin | Commercial | 100.00% | Incorporated | |
| Yibin Changjiangyuan Brewery Co., Ltd. | 18,900,000 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Yibin Wuliangye Organic Agriculture Development Co., Ltd. | 10,000,000 | Yibin | Yibin | Agricultural | 100.00% | Incorporated | |
| Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | 3,000,000 | Yibin | Yibin | Manufacturing | 90.00% | Incorporated | |
| Yibin Xianlin Liquor Marketing Co., Ltd. | 3,000,000 | Yibin | Yibin | Commercial | 90.00% | Incorporated | |
| Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | 14,000,000 | Yibin | Yibin | Manufacturing | 97.00% | 1.53% | Incorporated |
| Yibin Xinxing Packaging Co., Ltd. | 5,000,000 | Yibin | Yibin | Commercial | 98.53% | Incorporated | |
| Sichuan Yibin Plastic Packaging Materials Company Limited | 150,000,000 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Sichuan Yibin Plastic New Materials Company Limited | 50,000,000 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | 100,000,000 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | 200,000,000 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Sichuan Yibin Push Group 3D Co., Ltd. | 22,133,300 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Guangdong Plastic Packaging Materials Company Limited | 49,000,000 | Foshan | Foshan | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd. | 50,000,000 | Yibin | Yibin | Investment | 95.00% | Incorporated | |
| Wuliangye Dashijie (Beijing) Trade Co., Ltd. | 20,000,000 | Beijing | Beijing | Commercial | 95.00% | Incorporated | |
| Handan Yongbufenli Liquor Co., Ltd. | 500,000,000 | Handan | Handan | Manufacturing | 51.00% | Incorporated | |
| Linzhang Desheng Liquor Trade Co., Ltd. | 1,000,000 | Handan | Handan | Commercial | 51.00% | Incorporated | |
| Handan Yongbufenli Sales Co., Ltd. | 5,000,000 | Handan | Handan | Commercial | 51.00% | Incorporated | |
| Wuguchun Jiu Ye Co., Henan. China | 373,280,762 | Huaibin | Huaibin | Manufacturing | 51.03% | Business combination involving |
| entities not under common control | |||||||
| Huaibin Tenglong Trade Co., Ltd. | 5,000,000 | Huaibin | Huaibin | Commercial | 51.03% | Incorporated | |
| Wuguchun Jiu Ye Sales Co., Henan. China | 10,000,000 | Huaibin | Huaibin | Commercial | 51.03% | Incorporated | |
| Sichuan Wuliangye Culture Tourism Development Co., Ltd. | 50,000,000 | Yibin | Yibin | Tourism | 80.00% | Incorporated | |
| Sichuan Wuliangye Tourist Agency Co., Ltd. | 1,000,000 | Yibin | Yibin | Tourism | 80.00% | Incorporated | |
| Yibin Wuliangye Creart Co., Ltd. | 100,000,000 | Yibin | Yibin | Commercial | 45.00% | Incorporated | |
| Sichuan Wuliangye NongXiang Baijiu Co., Ltd. | 100,000,000 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Sichuan Wuliangye New Retail Management Co., Ltd. | 100,000,000 | Chengdu | Chengdu | Commercial | 90.00% | Incorporated |
Note on the difference between shareholding proportion and proportion of voting rights in subsidiary:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing SparkleInvestment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "CreartCompany"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, takingup 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. andthe Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. throughmutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company formanagement of the 6% equity held by it in Creart Company from the effective date of the agreement till theduration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue ShanInvestment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of CreartCompany. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, andtherefore Creart Company is included in the consolidated statements.As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang GrowthCapital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting ofCreart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to BeijingSparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company stillholds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in theconsolidated statements.The basis of controlling the invested company even if holding half or less than half voting rights and notcontrolling the invested company even if holding more than half voting rights:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing SparkleInvestment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "CreartCompany"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, takingup 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. andthe Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. throughmutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company formanagement of the 6% equity held by it in Creart Company from the effective date of the agreement till theduration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue ShanInvestment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of CreartCompany. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, andtherefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang GrowthCapital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting ofCreart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company stillholds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in theconsolidated statements.
(2) Important non-wholly-owned subsidiaries
Unit: RMB
| Subsidiary | Non-controlling interests | Net profit or loss attributable to non-controlling interests in the current period | Declared dividends for non-controlling interests in the current period | Closing balance of non-controlling interests |
| Yibin Wuliangye Liquor Sales Co., Ltd. | 5.00% | 1,072,229,395.63 | 893,324,237.86 | 1,716,732,675.65 |
(3) Key financial information of important non-wholly-owned subsidiaries
Unit: RMB
| Subsidiary | Closing balance | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Yibin Wuliangye Liquor Sales Co., Ltd. | 50,607,865,351.64 | 3,063,184,649.27 | 53,671,050,000.91 | 19,615,941,084.61 | 11,076,120.80 | 19,627,017,205.41 |
| Opening balance | ||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| 52,251,794,015.91 | 1,904,159,326.64 | 54,155,953,342.55 | 23,671,251,317.50 | 18,772,384.76 | 23,690,023,702.26 | |
Unit: RMB
| Subsidiary | 2023 | |||
| Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
| Yibin Wuliangye Liquor Sales Co., Ltd. | 61,829,117,337.04 | 21,444,587,912.50 | 21,444,587,912.50 | 27,830,372,649.88 |
| 2022 | ||||
| Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
| 55,106,792,873.09 | 19,856,120,656.12 | 19,856,120,656.12 | 17,366,966,563.43 | |
2. Transactions in which the interest in a subsidiary changes and the subsidiary is still controlled by theCompany
(1) Changes in the Company’s interests in its subsidiaries
There were no transactions in which the interest in a subsidiary changes and the subsidiary is still controlledby the Company during the Reporting Period.
3. Interests in joint ventures or associates
(1) Important joint ventures or associates
| Joint venture or associate | Principal place of business | Place of registration | Nature of business | The Company’s interest (%) | Accounting treatment of investment in the joint venture or associate | |
| Direct | Indirect | |||||
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Yibin | Yibin | Finance | 40.56% | Equity method | |
(2) Key financial information of important associates
Unit: RMB
| Closing balance/2023 | Opening balance/2022 | |
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | |
| Current assets | 11,767,876,781.26 | 10,716,370,139.80 |
| Non-current assets | 41,146,331,998.09 | 33,512,182,650.82 |
| Total assets | 52,914,208,779.35 | 44,228,552,790.62 |
| Current liabilities | 48,080,869,222.79 | 39,453,741,415.00 |
| Non-current liabilities | 5,478,067.66 | 16,087,688.44 |
| Total liabilities | 48,086,347,290.45 | 39,469,829,103.44 |
| Non-controlling interests | ||
| Equity attributable to the shareholders of the Company as the parent | 4,827,861,488.90 | 4,758,723,687.18 |
| Share of net assets in proportion to the Company’s interest | 1,958,180,619.90 | 1,930,138,327.52 |
| Adjustments | ||
| --Goodwill | ||
| --Unrealized profit of internal transactions | ||
| --Others | ||
| Carrying amount of equity investments in associates | 1,958,180,619.90 | 1,930,138,327.52 |
| Fair value of equity investments in associates with quoted prices on the open market | ||
| Operating revenue | 408,060,943.58 | 478,928,872.79 |
| Net profit | 127,417,801.72 | 215,835,825.86 |
| Net profit of discontinued operations |
| Other comprehensive income | ||
| Total comprehensive income | 127,417,801.72 | 215,835,825.86 |
| Dividends received from the associates in the current period | 23,638,368.00 | 23,038,080.00 |
(3) Aggregate financial information of unimportant joint ventures and associates
Unit: RMB
| Closing balance/2023 | Opening balance/2022 | |
| Joint ventures: | ||
| Aggregate amount in proportion to the Company’s interests | ||
| Associates: | ||
| Total carrying amount of investments | 62,185,620.79 | 56,249,197.26 |
| Aggregate amount in proportion to the Company’s interests | ||
| --Net profit | 5,936,423.53 | 5,028,940.18 |
| --Total comprehensive income | 5,936,423.53 | 5,028,940.18 |
4. Interests in structured entities not included in the consolidated financial statements
There were no structured entities that were not included in the consolidated financial statements in theReporting Period.XI Government Grants
1. Government grants recognised at the end of the Reporting Period at the amount receivable
□ Applicable ? Not applicable
Reasons for not receiving the projected amount of government grants at the projected time:
□ Applicable ? Not applicable
2. Liability items involving government grants
? Applicable □ Not applicable
Unit: RMB
| Accounting item | Opening balance | New grant in the current period | Amount recorder in non-operating income in the current period | Amount transferred to other income in the current period | Other changes in the current period | Closing balance | Related to assets/income |
| Deferred income | 251,279,149.22 | 10,383,695.10 | 9,835,774.46 | 251,827,069.86 | Related to assets | ||
| Deferred income | 3,137,715.53 | 1,921,460.02 | 1,216,255.51 | Related to income | |||
| Total | 254,416,864.75 | 10,383,695.10 | 11,757,234.48 | 253,043,325.37 |
3. Government grants through profit or loss
? Applicable □ Not applicable
Unit: RMB
| Accounting item | 2023 | 2022 |
| Other income | 236,257,100.25 | 100,421,839.81 |
XII Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Unit: RMB
| Item | Closing fair value | |||
| Fair value measurement at level I | Fair value measurement at level II | Fair value measurement at level III | Total | |
| I Consistent fair value measurement | -- | -- | -- | -- |
| Receivables financing | 14,086,450,565.79 | 14,086,450,565.79 | ||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | ||
| Total assets measured at fair value on an ongoing basis | 14,087,650,565.79 | 14,087,650,565.79 | ||
| II Fair value measurement on a non-ongoing basis | -- | -- | -- | -- |
2. Basis for determining the market value of fair value measurement at level I on an ongoing and non-ongoing basesNot applicable
3. For fair value measurement at level II on an ongoing and non-ongoing bases, qualitative and quantitativeinformation on the valuation techniques used and significant parameters
Not applicable
4. For fair value measurement at level III on an ongoing and non-ongoing bases, qualitative andquantitative information on the valuation techniques used and significant parametersReceivables financing: Due to the short term of notes receivable held by the Company, and the selling time,selling price and selling proportion cannot be estimated reliably, the Company measures the notes receivableaccording to the par value as a reasonable estimate of fair value.Other non-current financial assets: Since the Company holds other non-current financial assets that are nottraded in an active market, and its equity interest in the invested company is low and has no significant influence,it is not realistic and feasible to value the equity in the invested company using the income approach or marketapproach, and there is no recent introduction of external investors to the invested company or transfer of equityamong shareholders that can be used as a reference basis for determining fair value. In addition, the Company hasnot found any significant changes in the internal and external environment of the invested company since thebeginning of the year from the analysis of the relevant information available, therefore, it is a "limitedcircumstances" in which the carrying cost can be used as the best estimate of the fair value, and therefore the fairvalue is based on the cost at the end of the year.
5. For fair value measurement at level III on an ongoing basis, reconciliation information betweenbeginning and ending carrying values and sensitivity analysis of unobservable parametersNot applicable
6. For fair value measurement items on a continuous basis, if there is a conversion between different levelsin the current period, the reasons for the conversion and the policy for determining the conversion timepointNot applicable
7. Changes in valuation techniques occurring in the current period and reasons for changesNot applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Not applicableXIII Related Parties and Related-Party Transactions
1. Information on the parent company of the Company
| Name of the parent company | Place of registration | Nature of business | Registered capital | The parent company’s interest in the Company | The parent company’s voting right percentage in the Company |
| Yibin Development Holding Group Co., Ltd. | Yibin | Investment | RMB5 billion | 34.43% | 34.43% |
Information on the parent company of the Company:
Yibin Development Holding Group Co., Ltd. is a wholly state-owned company funded and established by thePeople’s Government of Yibin City. Legal representative of the company is Han Chengke and its registeredcapital is RMB5 billion. Its business scope includes the state-owned property right (including state-owned shares),state-owned assets and state investments as authorized by the People's Government of Yibin City. The company,as an investor, conducts capital management and assets management by holding, shareholding, investment andreceiving assignment, transfer, auction, and lease within the limits of authority.
Main functions of Yibin Development Holding Group Co., Ltd. include: First, holding state-owned equityand exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s Government of YibinCity; second, raising funds for key construction projects as an investment and financing platform of the People’sGovernment of Yibin City, and investing in such projects by shareholding and holding; third, promoting thepreserve and increase the value of state-owned assets and economic development of the city by capitalmanagement and assets management.
Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds 100%of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00 shares of theCompany directly or indirectly, taking up 54.83% of the total share capital of the Company.
The State-owned Assets Supervision and Administration Commission of the People’s Government of YibinCity is the ultimate controller of the Company.
2. Subsidiaries of the Company
Refer to the Note "X Interests in Other Entities" for information about subsidiaries of the Company.
3. Joint ventures and associates of the Company
Refer to the Note "X Interests in Other Entities" for information about important joint ventures and associatesof the Company.
Other joint ventures or associates that were involved in related-party transactions with the Company in thecurrent period, or that were involved in related-party transactions with the Company in prior periods with balanceslasting into the current period:
| Name of joint venture or associate | Relationship with the Company |
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Associate |
| Yibin Jiamei Intelligent Packaging Co., Ltd. | Associate |
4. Other related parties
| Names of other related parties | Relationship between other related parties and the Company |
| Sichuan Yibin Wuliangye Group Co., Ltd. | The legal representative of the Company concurrently serves as the Secretary of the CPC Committee and Chairman of the Board of Wuliangye Group, and some directors and officers of the Company concurrently hold positions in Wuliangye Group. Wuliangye Group directly holds a 20.40% interest in the Company. |
| Anji Logistic Group Co., Ltd. Sichuan | Subsidiary of Wuliangye Group |
| Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Subsidiary of Anji Logistic Group |
| Yibin Wuliangye Group I&E Co., Ltd. | Subsidiary of Wuliangye Group |
| Sichuan Yibin Push Group Co., Ltd. | Subsidiary of Wuliangye Group |
| Sichuan Yibin Push Mold Co., Ltd. | Subsidiary of Push Group |
| Sacred Mountain Molin Group Co., Ltd. Si Chuan | Subsidiary of Wuliangye Group |
| Sichuan Wuliangye Products Co., Ltd. | Subsidiary of Wuliangye Group |
| Sichuan Yibin Global Group Co., Ltd. | Subsidiary of Wuliangye Group |
| Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | Subsidiary of Global Group |
| WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Subsidiary of Wuliangye Group |
| Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Subsidiary of Global Group |
| Chengdu PUTH Medical Technology Co., Ltd. | Subsidiary of Push Group |
| Sichuan Yibin Push Building Materials Co., Ltd. | Subsidiary of Push Group |
| Sichuan Yibin Push Auto Parts Co., Ltd. | Subsidiary of Push Group |
| Push Information & Automation (Chengdu) Co., Ltd. | Subsidiary of Push Group |
| Yibin An Shi Ji International Logistics Co., Ltd. | Subsidiary of Anji Logistic Group |
| Yibin An Shi Ji Auto Service Co., Ltd. | Subsidiary of Anji Logistic Group |
| Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Subsidiary of Wuliangye Group |
| Sichuan Yibin Push Intelligent Technology Co., Ltd. | Subsidiary of Push Group |
| Chengdu Huayu Glass Manufacturing Co., Ltd. | Subsidiary of Global Group |
| Yibin Push Linko Technology Co., Ltd. | Subsidiary of Push Group |
| Sichuan Putian Packaging Co., Ltd. | Subsidiary of Push Group |
| Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | Subsidiary of Sacred Mountain Molin Group |
| Yibin Push Assets Management Co., Ltd. | Subsidiary of Push Group |
| Sichuan Andaxin Logistics Co., Ltd. | Subsidiary of Anji Logistic Group |
| Sichuan Yibin Global Environmental Technology Co., Ltd. | Subsidiary of Global Group |
| Wuming Tea Industry Holding Co., Ltd. | Subsidiary of Wuliangye Tea Industry Development Fund |
| Sichuan Linhu Tea Industry Co., Ltd. | Subsidiary of Chuanhong Tea Group |
| Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Subsidiary of Wuliangye Group |
| Yibin Wucai Packaging Co., Ltd. | Subsidiary of Licai Group |
| Sichuan Wuliangye Baojianjiu Sales Co., Ltd. | Subsidiary of Health Liquor Group |
| Sichuan Nongwu E-commerce Co., Ltd. | Subsidiary of Chuanhong Tea Group |
| Sichuan Global Insulator Co., Ltd. | Subsidiary of Global Group |
| Sichuan Shuzhan New Materials Co., Ltd. | Subsidiary of Sacred Mountain Molin Group |
| Yibin Jichi Automobile Sales Service Co., Ltd. | Subsidiary of Anji Logistic Group |
| Yibin Chuanhong Tea Group Co., Ltd. | Subsidiary of Wuliangye Tea Industry Development Fund |
| Sichuan Yibin Push International Co., Ltd. | Subsidiary of Push Group |
| Yibin Tianyuan Goods&Materials Industry Group Co., Ltd. | Subsidiary of Tianyuan Group |
| Zhejiang Pukai New Material Co., Ltd. | Subsidiary of Push Group |
| Yibin Airport Aviation Service Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
| Yibin Grace Fiber Industry Co., Ltd. | Subsidiary of Grace Group |
| Yibin Hiest Fibre Limited Corporation | Subsidiary of Grace Group |
| Yibin City Commercial Bank Co., Ltd. | Wuliangye Group holds a 19.99% interest. |
| Sichuan Yibin Push Drive Co., Ltd. | Subsidiary of Push Group |
| Yibin Airport Group Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
| Yibin Shunan Cultural Tourism and Creative Product Development Co., Ltd. | Subsidiary of Shunan Cultural Tourism Investment Group |
| Yibin Construction Investment Group Jinpaiyuan Supply Chain Management Co., Ltd. | Subsidiary of Yibin Urban and Traffic Construction Investment Group |
| Chengdu Anjiu Supply Chain Co., Ltd. | Subsidiary of Anji Logistic Group |
| Sichuan United Liquor Investment Management Co., Ltd. | Subsidiary of Anji Logistic Group |
| Yibin Xinjinxiu Garden Landscaping Co., Ltd. | Subsidiary of Grace Group |
| Yibin Shunan Mingkun Supply Chain Service Co., Ltd. | Subsidiary of Shunan Cultural Tourism Investment Group |
| Yibin Sanjiang Huiyuanhe Agricultural Investment Development Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
| Yibin Sanjiang Xingcheng Supply Chain Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering ofservicesPurchases of goods/receipt of services:
Unit: RMB
| Related party | Content of transaction | 2023 | Approved transaction amount | Over the approved transaction amount or not | 2022 |
| Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | Raw materials, glass bottles, etc. | 345,907,293.22 | 486,353,033.02 | ||
| Sacred Mountain Molin Group Co., Ltd. Si Chuan | PPE, etc. | 335,758,450.45 | 342,638,288.79 | ||
| Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | PPE, etc. | 86,640,642.77 | 16,261,166.33 | ||
| Sichuan Yibin Push Group Co., Ltd. | Anti-counterfeit labels etc. | 83,205,248.58 | 74,657,518.94 | ||
| Sichuan Wuliangye Products Co., Ltd. | Raw materials, etc. | 73,672,782.98 | 74,547,521.47 | ||
| Chengdu PUTH Medical Technology Co., Ltd. | Raw materials, etc. | 66,301,152.60 | 70,910,604.02 | ||
| Wuming Tea Industry Holding Co., Ltd. | Tea, etc. | 123,641,087.35 | 54,932,985.64 | ||
| Yibin Chuanhong Tea Group Co., Ltd. | Tea | 61,008,968.67 | 29,638,828.00 | ||
| Sichuan Yibin Push Mold Co., Ltd. | Raw materials, etc. | 51,994,509.33 | 64,080,623.14 | ||
| WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Health liquor | 105,592,684.05 | |||
| Sichuan Putian Packaging Co., Ltd. | Raw materials, etc. | 31,306,590.02 | 13,561,665.00 | ||
| Sichuan Yibin Push Drive Co., Ltd. | Raw materials, etc. | 15,120,732.04 | 17,523,314.19 | ||
| Chengdu Huayu Glass Manufacturing Co., Ltd. | Glass bottles, etc. | 15,641,165.60 | 21,780,109.59 |
| Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Medicines, etc. | 13,113,106.65 | 14,620,065.38 | ||
| Sichuan Wuliangye Baojianjiu Sales Co., Ltd. | Health liquor | 13,207,079.46 | |||
| Yibin Hiest Fibre Limited Corporation | Raw materials | 12,521,830.89 | |||
| Sichuan Yibin Push Building Materials Co., Ltd. | Raw materials | 9,207,131.18 | 5,487,962.63 | ||
| Sichuan Yibin Global Environmental Technology Co., Ltd. | Raw materials | 9,451,781.36 | |||
| Sichuan Yibin Push Auto Parts Co., Ltd. | Raw materials, etc. | 6,461,694.76 | 2,006,480.60 | ||
| Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Raw materials, etc. | 20,965.18 | 12,271,638.57 | ||
| Other miscellaneous purchases of goods from related parties | 18,659,774.34 | 7,280,955.55 | |||
| Total purchases of goods from related parties | 1,478,434,671.48 | 1,308,552,760.86 | |||
| Anji Logistic Group Co., Ltd. Sichuan | Freight and miscellaneous charges, service charges, etc. | 803,492,724.65 | 797,438,814.15 | ||
| Sichuan Andaxin Logistics Co., Ltd. | External labour costs | 181,926,238.47 | 77,361,088.22 | ||
| Yi Bin Jia Mei Smartpackaging Co., Ltd. | External processing expenses | 89,536,333.71 | 87,842,293.03 | ||
| Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Freight and miscellaneous charges, shuttle service charges, etc. | 62,557,181.29 | 69,437,258.05 | ||
| Chengdu PUTH Medical Technology Co., Ltd. | External processing expenses | 32,806,254.52 | |||
| Yibin Airport Group Co., Ltd. | Image promotion expenses | 16,426,886.78 | |||
| Sichuan Yibin Push Intelligent Technology Co., Ltd. | Repair expenses, etc. | 13,983,192.08 | 9,875,552.57 | ||
| Sichuan Yibin Push Mold Co., Ltd. | Repair expenses, etc. | 11,956,562.90 | |||
| Yibin Wucai Packaging Co., Ltd. | External processing expenses | 11,448,519.86 | 3,064,274.15 | ||
| Yibin An Shi Ji Auto Service Co., Ltd. | Freight and miscellaneous charges, repair charges, vehicle costs, etc. | 7,436,793.63 | 5,718,811.96 | ||
| WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Marketing support expenses | 8,157,421.41 | |||
| Other miscellaneous receipts of services from related parties | 16,334,682.82 | 7,552,474.39 | |||
| Total receipts of services from related parties | 1,247,905,370.71 | 1,066,447,987.93 |
Note 1: The Company and Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. entered into thePurchase and Sales Agreement and Agreement, according to which the Company procures raw materials, cartons,glass bottles, etc. from Huaxin. The pricing principle is market quotations, and the specific purchases and salesdemand may be determined according to the orders by the two parties. The Agreement is valid from 1 January2021 to 31 December 2023.
Note 2: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the LaborProtection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according to
which the Company procures labor protection appliances, packing bags, and festival food from Sacred MountainMolin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.Note 3: The Company and Chengdu PUTH Medical Technology Co., Ltd. entered into Procurement Contract.The Company procures films, bags, boxes, accessories, etc. from PUTH Medical. According to the bid agreement,the Company will place an order with Chengdu Push Medical Plastics Packaging Co., Ltd. with the bid result.Specific information on the name, quantity, amount, etc. of accessories can be seen in the procurement orderssigned by both parties. The price of goods is the factory price in lump sum, including the factory price of materials,packing expenses, transportation loss charges, transportation expenses, and various testing fees of the material,various risks, profits, taxes, and other expenses. The Agreement is valid for three year since the bid opening day.Note 4: On 11 December 2020, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into the SupplyAgreement. The Company procures molds, spare parts, systems, R&D restructuring and maintenance projects,injection products and raw material, value-added services and so on from Sichuan Yibin Push Mold Co., Ltd. Theagreement products are paid at market price, and the specific purchases and sales demand may be determinedaccording to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 5: On 5 March 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the Related-Party Transaction Framework Agreement. The Company procures equipment and anti-counterfeit labels fromPush Group. Refer to corresponding purchases and sales contract for details on sales of goods, unit, quantity, andamount. The product price is the factory price in lump sum, including the factory price of materials, packingexpenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted by thecountry) and other expenses. If delivery is requested, extra expenses such as the freight charge, insurance expenseand delivery expense are needed based on the factory price. The Agreement is valid from 5 March 2021 to 31December 2023.Note 6: The Company and Wuming Tea Industry Holding Co., Ltd. entered into the Agreement, according towhich the Company procures tea leaves and peripheral products of tea, tea-related prepackaged foods and tea forheatstroke prevention and cooling, papers products, and marketing products from Wuming Tea Industry HoldingCo., Ltd. The pricing principle is based on the value and cost, oriented by market competition, taking the historicalprice for reference and the costs, profits, taxes and dues, quality, delivery date, order quantity, after-sales service,logistics, packaging, payment terms into full consideration. The specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.Note 7: The Company and Anji Logistic Group Co., Ltd. Sichuan entered into the Agreement on 1 January2021, according to which the Company procures the services of transportation and delivery, warehousing andstevedoring. The pricing principle is price fairness, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.Sale of goods/rendering of services:
Unit: RMB
| Related party | Content of transaction | 2023 | 2022 |
| Yibin Wuliangye Group I&E Co., Ltd. | Liquor products, etc. | 1,004,222,636.50 | 890,325,314.77 |
| Yibin Shunan Cultural Tourism and Creative Product Development Co., Ltd. | Liquor products, etc. | 442,699,754.58 | |
| Wuming Tea Industry Holding Co., Ltd. | Liquor products, etc. | 385,159,074.92 | 88,605,502.59 |
| Yibin Construction Investment Group Jinpaiyuan Supply Chain Management Co., Ltd. | Liquor products | 300,887,362.93 | |
| Sichuan Putian Packaging Co., Ltd. | Bottle caps, packaging boxes, etc. | 150,137,380.27 | 147,098,873.26 |
| Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Liquor products | 119,551,045.09 | 3,233,235.08 |
| Sichuan Global Insulator Co., Ltd. | Glass bottles, etc. | 49,013,139.34 | 85,983,531.87 |
| Chengdu PUTH Medical Technology Co., Ltd. | Raw materials, etc. | 41,063,618.50 | 37,044,899.55 |
| Yibin Airport Aviation Service Co., Ltd. | Liquor products | 34,746,079.60 | 5,094,330.99 |
| Sichuan Yibin Global Group Co., Ltd. | Liquor products | 31,880,741.60 | |
| Chengdu Anjiu Supply Chain Co., Ltd. | Raw materials, etc. | 30,791,328.97 | |
| Sichuan United Liquor Investment Management Co., Ltd. | Liquor products, etc. | 28,903,393.24 | |
| Sichuan Nongwu E-commerce Co., Ltd. | Liquor products | 25,314,289.31 | 41,097,469.02 |
| Zhejiang Pukai New Material Co., Ltd. | Slices | 8,449,819.82 | 9,609,175.58 |
| Chengdu Huayu Glass Manufacturing Co., Ltd. | Cartons, etc. | 19,145,337.80 | 6,311,751.24 |
| Sichuan Yibin Push Building Materials Co., Ltd. | Raw materials, etc. | 17,701,766.60 | 5,730,155.65 |
| Yibin Chuanhong Tea Group Co., Ltd. | Packaging boxes, etc. | 8,902,368.69 | |
| Yibin Sanjiang Xingcheng Supply Chain Co., Ltd. | Raw materials, etc. | 12,527,086.94 | |
| Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Liquor products, etc. | 12,129,216.84 | 17,820,858.43 |
| Sichuan Yibin Push Drive Co., Ltd. | Slices, etc. | 11,016,970.23 | 10,870,632.10 |
| Sichuan Wuliangye Products Co., Ltd. | Liquor products, and raw materials | 9,988,988.06 | 340,207,564.08 |
| Sichuan Linhu Tea Industry Co., Ltd. | Packaging boxes, etc. | 7,140,322.95 | 2,708,303.80 |
| Yibin Grace Fiber Industry Co., Ltd. | Cartons, arts & crafts, etc. | 5,374,624.42 | 4,139,121.41 |
| Sichuan Shuzhan New Materials Co., Ltd. | Cartons, etc. | 3,182,147.56 | 5,456,605.98 |
| Yibin An Shi Ji International Logistics Co., Ltd. | Liquor products, etc. | 1,913,358.12 | 96,358,269.24 |
| Sichuan Yibin Global Group Co., Ltd. | Glass bottles, raw materials, etc. | 401,633.64 | 59,487,606.48 |
| Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Raw materials, etc. | 106,620.22 | 50,054,556.67 |
| Yibin Tianyuan Goods&Materials Industry Group Co., Ltd. | Raw materials, etc. | 23,198,309.63 | |
| Other miscellaneous sales to related parties | 29,854,861.07 | 29,535,772.80 | |
| Total | 2,792,204,967.81 | 1,959,971,840.22 |
Note 1: On 1 January 2021, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into the ExportCommodities Purchase and Sales Agreement. According to the Agreement, Wuliangye Group I&E shall give theCompany prior written notice of specific requirements for specification, model, packaging, anti-counterfeit label,quantity, and delivery term of the Wuliangye series products according to the demands of the international market,and prepay 60% of the purchase price to the Company. The Company shall organize the production and supplyWuliangye series liquor products in a timely manner according to the export demands of Wuliangye Group I&E.Due to some factors such as the change of the exchange rate, the price that the Company charges for the agreedproducts supplying to Wuliangye Group I&E is floating price. The Agreement is valid from 1 January 2021 to 31December 2023.Note 2: On 22 December 2020, the Company and Sichuan Putian Packaging Co., Ltd. entered into theFramework Contract. Sichuan Putian Packaging Co., Ltd. procures bulk chemical materials, packaging productsand other materials from the Company for production and operation. Refer to corresponding purchases and salescontract for details on sales of goods, unit, quantity, and amount. The product price is the factory price in lumpsum, including the factory price of materials, packing expenses, and various testing fees of the material, variousrisks, profits, taxes (utilizing the tax rate adjusted by the country) and other expenses. If delivery is requested,extra expenses such as the freight charge, insurance expense and delivery expense are needed based on the factoryprice. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Global Group Co., Ltd. entered into theAgreement. Sichuan Yibin Global Group Co., Ltd. procures glass bottles and so on from the Company. Thepricing principle is as it is agreed in the contract, and the specific purchases and sales demand may be determinedaccording to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.Note 4: The Company and Chengdu PUTH Medical Technology Co., Ltd. entered into the FrameworkContract and Related-Party Transaction Framework Agreement. PUTH Medical procures bulk chemical materials,packaging products and other materials from the Company for production and operation. Please refer tocorresponding purchases and sales contract for details on sales of goods, unit, quantity, and amount. The productprice is the factory price in lump sum, including the factory price of materials, packing expenses, and varioustesting fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted by the country) and otherexpenses. If delivery is requested, extra expenses such as the freight charge, insurance expense and deliveryexpense are needed based on the factory price. The Agreement is valid from 1 January 2021 to 31 December 2023.Note 5: The Company and Sichuan Nongwu E-commerce Co., Ltd. entered into the Agreement. SichuanNongwu E-commerce Co., Ltd. procures Wuliang Nongxiang wine from the Company, and the specific purchasesand sales demand may be determined according to the orders by the two parties. The Agreement is valid from 1January 2021 to 31 December 2023.Note 6: On 1 September 2020, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery andMarketing Co., Ltd. entered into the Base Wine Purchase Agreement. According to the market demand, SichuanYibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. put forward specific requirements for thequantities, delivery date and so on of the agreed products in advance. Then, the Company supplies the agreedproducts to it based on its demand for production and operation. For each actual supply of the agreed products, theactual settle quantity should be the quantity determined by both parties, and the price of the agreed products shallstrictly obey the market price with the delivery after payment. The Agreement is valid from 1 January 2021 to 31December 2023.
(2) Leases between the Company and related parties
The Company as the lessor:
Unit: RMB
| Lessee | Type of the leased asset | Lease income recognized in the current period | Lease income recognized in the prior period |
| Other miscellaneous leases | Buildings and constructions, and warehouses | 1,651,136.85 | 1,325,206.16 |
The Company as the lessee:
Unit: RMB
| Lessor | Type of the leased asset | Lease expense on short-term leases and leases of low-value assets accounted with a simplified approach (if applicable) | Variable lease payments not included in lease liabilities (if applicable) | Lease payments | Interest expense on lease liabilities | Addition of right-of-use assets | |||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||
| Anji Logistic Group Co., Ltd. Sichuan | Warehouses | 490,000.11 | 166,606,694.95 | 61,860,729.58 | 14,368,683.81 | 23,103,665.50 | 854,420.38 | 757,254.25 | 58,245,693.25 | 34,272,706.59 | |
| Sichuan Yibin Push Group Co., Ltd. | Buildings and constructions (note 3) | 6,715,238.08 | 6,715,238.08 | 227,351.66 | 446,482.91 | ||||||
| Sichuan Yibin Wuliangye Group Co., Ltd. | Buildings and constructions (note 2) | 1,384,512.67 | 1,522,182.20 | 29,255,400.00 | 29,255,400.00 | 547,140.04 | 1,533,162.69 | ||||
| Sichuan Yibin Wuliangye Group Co., Ltd. | Land (note 1) | 296,608,546.40 | 296,608,546.40 | 5,547,229.32 | 15,544,110.07 | ||||||
| Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Warehouses | 1,294,889.16 | 3,970,671.20 | 3,714,028.94 | 64,397.62 | 217,815.12 | |||||
| Yibin Push Linko Technology Co., Ltd. | Warehouses | 6,175,162.94 | 2,219,398.11 | 5,541,764.38 | 307,525.19 | 7,990,918.52 | |||||
| Yibin Push Assets Management Co., Ltd. | Warehouses | 3,288,644.91 | 4,128,446.44 | 2,431,920.00 | 3,735,473.53 | 66,040.85 | 146,943.35 | 4,718,715.17 | |||
| Other miscellaneous leases | Warehouses, etc. | 10,475,421.86 | 6,037,485.74 | 40,906.52 | 11,134,403.14 | 14,508,988.36 | -205,422.47 | 734,849.67 | 1,579,889.04 | 8,470,998.97 | |
Notes to the leases between the Company and related parties:
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into three Land Lease Agreements, according to which
Wuliangye Group leased five plots of lands (Wujiaba Land Parcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, and Zhuchangqu Land Parcel)with an area of 2,315,349.08 square meters, Guifei Land Parcel, Old Summer Palace Land Parcel I and II, Nanxi Land Parcel I, II, and III, Zhuchangqu Land Parcelwith an area of 725,587.75 square meters, and 1,000 mu of land (an area of 666,670.00 square meters) in the north side of Hongba Road owned by it to the Company.The annual rents are RMB185,227,900, RMB5,804,700and RMB53,333,600, respectively, totaling RMB296,608,500. The lease term is from 1 January 2021 to 31December 2023.Land price criterion:
The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. is formulated with reference to the land lease criterion of previousyears and in accordance with the Reply of Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of the Land LeaseCriterion (YGTH [2010] No. 53, 12 March 2010), which states that "the rent of RMB50 to RMB110 per square meter per year for the industrial land in this area isconsistent with prevailing land price of Yibin". The Company and Wuliangye Group determine the rent of leased land as RMB80 per square meter per year throughmutual agreement.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the Operation and Management Areas LeaseAgreement, according to which Wuliangye Group leases part of the operation and management areas (including the office building, multi-function pavilion, etc.)owned by it to the Company. The leased area is 27,121.32 square meters, with the annual rent of RMB29,255,400. The lease term is from 1 January 2021 to 31December 2023.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the Operation and Management Areas Lease Agreement,according to which Push Group leases its office building located at No. 150, West Minjiang Road, Yibin and all office equipment in the office building to theCompany. The leased area is 6,536.70 square meters, with the annual rent of RMB7.051 million. The lease term is from 1 January 2021 to 31 December 2023.
(3) Guarantees between the Company and related parties
There were no guarantees between the Company and related parties during the Reporting Period.
(4) Loans between the Company and related parties
There were no loans between the Company and related parties during the Reporting Period.
(5) Asset transfers and debt restructuring involving related parties
There were no asset transfers or debt restructuring involving related parties during the Reporting Period.
(6) Remuneration of key management
Unit: RMB’0,000
| Item | 2023 | 2022 |
| Remuneration of key management | 906.57 | 1,304.21 |
(7) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
| Related party | Content of transaction | 2023 | 2022 |
| Sichuan Yibin Wuliangye Group Co., Ltd. | Trademark and logo royalties (note 1) | 966,221,702.16 | 862,086,498.68 |
| Sichuan Yibin Wuliangye Group Co., Ltd. | Comprehensive service fee (note 2) | 85,342,094.79 | 77,670,062.58 |
| Yibin An Shi Ji Auto Service Co., Ltd. | Procurement of transportation equipment | 15,450,000.00 | |
| Yibin Jichi Automobile Sales Service Co., Ltd. | Procurement of transportation equipment | 11,861,194.56 | |
| Push Information & Automation (Chengdu) Co., Ltd. | Procurement of equipment and software systems | 2,613,082.31 | 7,176,823.71 |
| Sichuan Yibin Push Intelligent Technology Co., Ltd. | Procurement of equipment | 8,713,995.95 | 6,570,295.36 |
| Sichuan Yibin Global Environmental Technology Co., Ltd. | Construction in progress | 8,350,148.66 | |
| Other miscellaneous purchases of equipment, etc. | 11,744,027.48 | 5,419,526.71 |
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into theTrademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses to the Company thenonexclusive right of use of one factory emblem, the nonexclusive right of use of seven trademarks, exclusiveright of use of 182 trademarks, and unpaid exclusive right of use of eight trademarks. The royalty shall be paid bythe following means: a) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales revenue fromall liquor products using the factory emblem; b) no royalty shall be paid for trademark of liquor products of whichthe annual sales revenue is less than 50 tons, and royalty of trademark of liquor products sold by 50 tons(inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paid by thefollowing means: Trademark royalty of products with selling price at RMB30,000 per ton and above shall beRMB1,500 per ton; and that of products with selling price at RMB12,000 per ton and above but belowRMB30,000 per ton shall be RMB1,400 per ton; that of products with selling price below RMB12,000 shall beRMB1,300 per ton. The Agreement is valid from 1 January 2021 to 31 December 2023.Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into theComprehensive Service Agreement, according to which the latter shall provide the agreed service to the Companyby the quantity agreed by both parties from time to time. Both parties measure the services at the actual cost, andthe rate of increase of the unit cost price compared with the previous year shall be no more than the inflation indexof previous year plus 5% or the growth factor of consumer price index of Sichuan Province, whichever is lower.The increase shall not be subject to the above limit when the service scope is expanded, and the service shall stillbe measured at the actual cost of provision of the service. The Agreement is valid from 1 January 2021 to 31December 2023.
b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
On 19 April 2023, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafter referredto as "Wuliangye Group Finance") entered into a supplementary agreement to the Financial Service Agreement.As such, both parties agreed to continue to implement in 2023 “the Financial Service Agreement signed betweenthe Company and Wuliangye Group Finance on 2 April 2021”, i.e. the daily balance of loans and credit lines fromWuliangye Group Finance in 2023 was no more than RMB10 billion.The total deposits of the Company with Wuliangye Group Finance was RMB40,299,537,492.34 at the end ofthe period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to the Company, assuringthat relevant deposits and loans of the Company with Wuliangye Group Finance are safe; the current interestincome is RMB969,194,731.11 in total; Wuliangye Group Finance discounted bank acceptance bills ofRMB536,140,080.00 for the Company during the current period (undue bank acceptance notes as at 31 December2023: RMB69,750,000.00); and Wuliangye Group Finance issued bank acceptance bills of RMB637,964,190.74for the Company during the current period (undue bank acceptance notes as at 31 December 2023:
RMB466,501,053.92).
c) Related-party transactions with Yibin City Commercial Bank Co., Ltd.
The total deposits of the Company with Yibin City Commercial Bank Co., Ltd. was RMB11,491,609,251.08at the end of the period; the current interest income is RMB161,719,529.79 in total; Yibin City Commercial BankCo., Ltd. issued bank acceptance bills of RMB338,210,000.00 for the Company during the current period (unduebank acceptance bills as at 31 December 2023: RMB138,820,000.00).
6. Amounts due from and to related parties
(1) Amounts due from related parties
Unit: RMB
| Item | Related party | Closing balance | Opening balance | ||
| Gross amount | Allowance for doubtful account | Gross amount | Allowance for doubtful account | ||
| Account receivable | Sichuan Putian Packaging Co., Ltd. | 11,034,316.71 | 9,704,093.72 | ||
| Account receivable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 3,953,526.99 | 2,274,390.13 | ||
| Account receivable | Yibin Grace Fiber Industry Co., Ltd. | 2,641,212.86 | 1,667,887.25 | ||
| Account receivable | Other miscellaneous accounts receivable | 1,236,709.66 | 2,100,942.42 | ||
| Prepayment | Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | 3,398,230.09 | 18,900,000.00 | ||
| Prepayment | Wuming Tea Industry Holding Co., Ltd. | 6,016,608.60 | 7,245.00 | ||
| Prepayment | Yibin Xinjinxiu Garden Landscaping Co., Ltd. | 4,380,147.38 | |||
| Prepayment | Other miscellaneous prepayments | 821,470.76 | 1,251,623.86 | ||
| Monetary assets | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 606,922,650.12 | 666,921,754.74 | ||
| Monetary assets | Yibin City Commercial Bank Co., Ltd. | 118,345,047.42 | 10,804,085.47 | ||
| Other receivables | Other miscellaneous other receivables | 1,037,121.60 | 1,403,354.82 | ||
The amounts related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. and Yibin City Commercial BankCo., Ltd. in this table represented the interest on time deposits accrued on an accrual basis, and the closingbalances were presented in monetary assets.
(2) Amounts due to related parties
Unit: RMB
| Item | Related party | Closing gross amount | Opening gross amount |
| Account payable | Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | 12,485,412.92 | 4,376,392.22 |
| Account payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 3,161.00 | 1,026,904.56 |
| Account payable | Yibin Push Assets Management Co., Ltd. | 3,096,000.00 | 313,182.65 |
| Account payable | Sichuan Putian Packaging Co., Ltd. | 1,350,604.28 | 37,096.80 |
| Account payable | Anji Logistic Group Co., Ltd. Sichuan | 135,225,553.79 | |
| Account payable | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 224,885,409.87 | |
| Account payable | Sichuan Yibin Global Environmental Technology Co., Ltd. | 3,825,469.04 | 239,674.59 |
| Account payable | Sichuan Wuliangye Products Co., Ltd. | 3,727,072.00 | |
| Account payable | Sichuan Yibin Push International Co., Ltd. | 1,433,373.36 | |
| Account payable | Other miscellaneous accounts payable | 2,208,577.81 | 1,698,245.81 |
| Advance from customer | Other miscellaneous advances from customers | 17,142.71 | 17,142.89 |
| Contract liability | Yibin Wuliangye Group I&E Co., Ltd. | 199,518,341.92 | 445,542,725.66 |
| Contract liability | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | 1,732,228.75 | 1,732,228.75 |
| Contract liability | Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | 2,295.87 | 1,536,665.16 |
| Contract liability | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 1,023,041.91 | 1,020,748.11 |
| Contract liability | Sichuan Nongwu E-commerce Co., Ltd. | 1,130,074.52 | 453,537.40 |
| Contract liability | Sichuan Wuliangye Products Co., Ltd. | 35,457,682.68 | 59,426,283.57 |
| Contract liability | Yibin Airport Aviation Service Co., Ltd. | 133,805.31 | 33,329,766.37 |
| Contract liability | Yibin Shunan Mingkun Supply Chain Service Co., Ltd. | 26,548,672.57 | |
| Contract liability | Yibin Construction Investment Group Jinpaiyuan Supply Chain Management Co., Ltd. | 44,602,126.69 | |
| Contract liability | Other miscellaneous contract liabilities | 5,384,980.44 | 2,773,772.32 |
| Note payable | Anji Logistic Group Co., Ltd. Sichuan | 5,757,438.64 | |
| Note payable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 6,300,559.87 | |
| Note payable | Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | 14,607,310.45 | |
| Note payable | Other miscellaneous notes payable | 148,734.18 | |
| Other payable | Yibin Chuanhong Tea Group Co., Ltd. | 25,842.53 | 3,206,818.98 |
| Other payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 2,105,565.41 | 2,356,447.86 |
| Other payable | Anji Logistic Group Co., Ltd. Sichuan | 216,589,647.24 | 1,615,588.00 |
| Other payable | Wuming Tea Industry Holding Co., Ltd. | 57,242,321.41 | 20,000.00 |
| Other payable | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 127,972.50 | 1,315,988.00 |
| Other payable | Push Information & Automation (Chengdu) Co., Ltd. | 1,480,720.39 | 1,313,400.40 |
| Other payable | Yibin Sanjiang Huiyuanhe Agricultural Investment Development Co., Ltd. | 1,883,607.50 | |
| Other payable | Other miscellaneous other payables | 5,305,779.21 | 3,980,824.48 |
XIV Undertakings and Contingencies
1. Significant undertakings
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
2. Contingencies
The Company had no significant contingencies which needed to be disclosed during the Reporting Period.
XV Post-Balance Sheet Date Events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
2. Profit distribution
As resolved by the 4th Meeting in 2024 of the 6th Board of Directors of the Company held on 24 April 2024,the final dividend plan for 2023 is: a cash dividend of RMB46.70 (tax inclusive) per 10 shares should bedistributed to shareholders, with no bonus issue from capital reserves. This plan shall be subject to the approval ofa general meeting of shareholders.
3. Note on other post-balance sheet date events
The Company has no other post-balance sheet date events which need to be disclosed.XVI Other Significant Matters
1. Annuity plan
The Company obtained the reply of the State-owned Assets Supervision and Administration Commission ofthe People’s Government of Yibin City on the Plan of Establishing the Corporate Annuity Plan of the Company(YGZW [2018] No. 221) on 14 September 2018, and had filed with the Department of Human Resources andSocial Security of Sichuan Province on 30 October 2018.
Participants of the corporate annuity plan of the Company include: (1) Employees who have entered intolabor contracts with the Company; (2) employees who participate in the basic old-age insurance system forenterprise employees according to the law and perform the obligation of payment; and (3) employees who are onduty and registered (excluding the probation period) will participate the corporate pension plan on a voluntarybasis.
Expenses for the corporate annuities shall be shared by the Company and the employees. Contribution by anemployee shall be 3% of the contribution base of such employee, and the monthly contribution base of theemployee shall be the average wage in the previous year. Total amount of contribution by the Company shall be 5%of the total annual wage paid by the Company, which shall be distributed to individual accounts of the employeesat 3% of the contribution base of the employees, while the remaining 2% shall be distributed to the corporateaccount as incentives for rewarding personnel who make significant contributions to the Company and forredistribution to employees of the Company.
2. Segment information
The Company has no other businesses than liquor products which have significant impact on the operatingresult. The Company has no segment information that needs to be disclosed since revenue of the Company ismainly generated within China and the assets are also located within China.
XVII Notes to Major Line Items in the Financial Statements of the Company as the Parent
1. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividends receivable | 930,755,375.66 | 2,126,718,123.00 |
| Other receivables | 5,555,194,330.26 | 6,335,913,181.66 |
| Total | 6,485,949,705.92 | 8,462,631,304.66 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
| Item (or investee) | Closing balance | Opening balance |
| Dividends receivable from subsidiaries | 930,755,375.66 | 2,126,718,123.00 |
| Total | 930,755,375.66 | 2,126,718,123.00 |
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
| Nature | Closing gross amount | Opening gross amount |
| Current account | 5,553,988,496.97 | 6,333,318,770.49 |
| Security deposits | 199,301.29 | 5,000,000.00 |
| Cash float | 5,000,000.00 | 101,301.29 |
| Other advance money for others or temporary payment | 16,868.17 | |
| Total | 5,559,204,666.43 | 6,338,420,071.78 |
2) Other receivables presented by aging
Unit: RMB
| Aging | Closing gross amount | Opening gross amount |
| Within 1 year (inclusive) | 421,132,709.48 | 4,118,461,478.12 |
| 1 to 2 years | 2,927,461,223.86 | 213,939,106.11 |
| 2 to 3 years | 213,939,106.11 | 150,484,231.55 |
| More than 3 years | 1,996,671,626.98 | 1,855,535,256.00 |
| 3 to 4 years | 150,484,231.55 | 102,537,494.25 |
| 4 to 5 years | 102,537,494.25 | 126,271,655.92 |
| More than 5 years | 1,743,649,901.18 | 1,626,726,105.83 |
| Total | 5,559,204,666.43 | 6,338,420,071.78 |
3) Other receivables by method of establishing allowance for doubtful account? Applicable □ Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
| Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
| Of which: | ||||||||||
| Other receivables for which allowances for doubtful accounts are established on a grouping basis | 5,559,204,666.43 | 100.00% | 4,010,336.17 | 0.07% | 5,555,194,330.26 | 6,338,420,071.78 | 100.00% | 2,506,890.12 | 0.04% | 6,335,913,181.66 |
| Of which: | ||||||||||
| Of which: External customers | 5,219,730.82 | 0.09% | 4,010,336.17 | 76.83% | 1,209,394.65 | 5,104,862.65 | 0.08% | 2,506,890.12 | 49.11% | 2,597,972.53 |
| Related parties | 5,553,984,935.61 | 99.91% | 5,553,984,935.61 | 6,333,315,209.13 | 99.92% | 6,333,315,209.13 | ||||
| Total | 5,559,204,666.43 | 100.00% | 4,010,336.17 | 0.07% | 5,555,194,330.26 | 6,338,420,071.78 | 100.00% | 2,506,890.12 | 0.04% | 6,335,913,181.66 |
Other receivables for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
| Item | Closing balance | ||
| Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | |
| Other receivables for which allowances for doubtful accounts are established based on the external customer group | 5,219,730.82 | 4,010,336.17 | 76.83% |
| Other receivables for which allowances for doubtful accounts are established based on the related party group | 5,553,984,935.61 | ||
| Total | 5,559,204,666.43 | 4,010,336.17 | |
Allowances for doubtful accounts established using the general model of expected credit loss:
Unit: RMB
| Allowances for doubtful accounts | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance as at 1 January 2023 | 2,506,890.12 | 2,506,890.12 | ||
| Balance as at 1 January 2023 was in the current period | ||||
| Established in the current period | 1,503,446.05 | 1,503,446.05 | ||
| Balance as at 31 December 2023 | 4,010,336.17 | 4,010,336.17 |
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
4) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
| Category | Opening balance | Changes in the current period | Closing balance | |||
| Established | Recovered or reversed | Charged off or written off | Others | |||
| Other receivables for which allowances for doubtful accounts are established based on the credit risk characteristic group | 2,506,890.12 | 1,503,446.05 | 4,010,336.17 | |||
| Total | 2,506,890.12 | 1,503,446.05 | 4,010,336.17 | |||
5) Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
6) Top five entities with respect to other receivables
Unit: RMB
| Entity | Nature of account | Closing balance | Aging | As % of the closing balance | Closing balance of allowances |
| of total other receivables | for doubtful accounts | ||||
| Sichuan Yibin Wuliangye Distillery Co., Ltd. | Current account | 3,212,033,693.88 | Within 2 years | 57.78% | |
| Yibin Jiangjiu Liquor Co., Ltd. | Current account | 2,037,835,760.28 | 1-5 years; over 5 years | 36.66% | |
| Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | Current account | 174,909,203.40 | Within 3 years; over 5 years | 3.15% | |
| Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Current account | 129,206,278.05 | Over 5 years | 2.32% | |
| Housing and Urban-Rural Development Bureau of Cuiping District, Yibin City | Security deposit | 5,000,000.00 | Over 5 years | 0.09% | 4,000,000.00 |
| Total | 5,558,984,935.61 | 100.00% | 4,000,000.00 |
2. Long-term equity investments
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Gross amount | Impairment allowances | Carrying amount | Gross amount | Impairment allowances | Carrying amount | |
| Investments in subsidiaries | 11,440,444,117.59 | 11,440,444,117.59 | 11,416,902,138.11 | 11,416,902,138.11 | ||
| Investments in associates and joint ventures | 1,996,294,215.89 | 1,996,294,215.89 | 1,966,914,053.94 | 1,966,914,053.94 | ||
| Total | 13,436,738,333.48 | 13,436,738,333.48 | 13,383,816,192.05 | 13,383,816,192.05 | ||
(1) Investments in subsidiaries
Unit: RMB
| Investee | Opening balance (carrying amount) | Opening balance of impairment allowance | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | |||
| Increase in investment | Decrease in investment | Impairment allowance | Others | |||||
| Sichuan Yibin Wuliangye Distillery Co., Ltd. | 5,069,784,707.36 | 5,069,784,707.36 | ||||||
| Yibin Wuliangye Liquor Sales Co., Ltd. | 190,000,000.00 | 190,000,000.00 | ||||||
| Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | 765,756,006.41 | 765,756,006.41 | ||||||
| Yibin Jiangjiu Liquor Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||||
| Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | 18,870,000.00 | 23,541,979.48 | 42,411,979.48 | |||||
| Yibin Changjiangyuan Liquor Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||||
| Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | 2,700,000.00 | 2,700,000.00 | ||||||
| Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | 49,374,409.93 | 49,374,409.93 | ||||||
| Sichuan Yibin Plastic Packaging Materials Company Limited | 3,443,149,609.25 | 3,443,149,609.25 | ||||||
| Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | 108,922,175.18 | 108,922,175.18 | ||||||
| Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | 307,282,551.14 | 307,282,551.14 | ||||||
| Sichuan Yibin Push Group 3D Co., Ltd. | 240,419,229.32 | 240,419,229.32 | ||||||
| Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd. | 47,500,000.00 | 47,500,000.00 | ||||||
| Wuliangye Dashijie (Beijing) Trade Co., Ltd. | 323,000,000.00 | 323,000,000.00 | ||||||
| Handan Yongbufenli Liquor Co., Ltd. | 255,000,000.00 | 255,000,000.00 | ||||||
| Wuguchun Jiu Ye Co., Henan. China | 255,143,449.52 | 255,143,449.52 | ||||||
| Sichuan Wuliangye Culture Tourism Development Co., Ltd. | 40,000,000.00 | 40,000,000.00 | ||||||
| Yibin Wuliangye Creart Co., Ltd. | 45,000,000.00 | 45,000,000.00 | ||||||
| Sichuan Wuliangye NongXiang Baijiu Co., Ltd. | 95,000,000.00 | 95,000,000.00 | ||||||
| Sichuan Wuliangye New Retail Management Co., Ltd. | 90,000,000.00 | 90,000,000.00 | ||||||
| Total | 11,416,902,138.11 | 23,541,979.48 | 11,440,444,117.59 |
(2) Investment in associates and joint ventures
Unit: RMB
| Investee | Opening balance (carrying amount) | Opening balance of impairment allowance | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | ||||||||
| Increase in investment | Decrease in investment | Return on investment recognized using the equity method | Adjustment to other comprehensive income | Other equity changes | Declared cash dividends or profit | Impairment allowance | Others | ||||||
| I Joint ventures | |||||||||||||
| II Associates | |||||||||||||
| Oriental Outlook Media Co., Ltd. | 26,129,137.92 | 1,232,799.42 | 27,361,937.34 | ||||||||||
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,930,138,327.52 | 51,680,660.38 | 23,638,368.00 | 1,958,180,619.90 | |||||||||
| Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | 10,646,588.50 | 105,070.15 | 10,751,658.65 | |||||||||
| Sub-total | 1,966,914,053.94 | 53,018,529.95 | 23,638,368.00 | 1,996,294,215.89 | ||||||||
| Total | 1,966,914,053.94 | 53,018,529.95 | 23,638,368.00 | 1,996,294,215.89 |
3. Return on investment
Unit: RMB
| Item | 2023 | 2022 |
| Return on long-term equity investments measured using the cost method | 21,137,079,766.89 | 18,712,159,587.02 |
| Return on long-term equity investments measured using the equity method | 53,018,529.95 | 87,619,669.47 |
| Total | 21,190,098,296.84 | 18,799,779,256.49 |
XVIII Supplementary Information
1. Schedule of current exceptional gains and losses
? Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -50,550,226.30 | |
| Government grants recognised in profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 236,257,100.25 | |
| Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 300,065.66 | |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 1,388,731.60 | |
| Non-operating income and expense other than the above | -36,541,935.37 | |
| Less: Income tax effects | 40,618,434.04 | |
| Non-controlling interests effects (net of tax) | 16,118,943.29 | |
| Total | 94,116,358.51 | -- |
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
| Profit in the Reporting Period | Weighted average ROE | EPS |
| (%) | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | |
| Net profit attributable to the Company’s ordinary shareholders | 25.06% | 7.783 | 7.783 |
| Net profit attributable to the Company’s ordinary shareholders before exceptional gains and losses | 24.98% | 7.759 | 7.759 |
3. Accounting data differences under China’s Accounting Standards for Business Enterprises (CAS) andInternational Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable ? Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable ? Not applicable
(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where anyreconciliation is made to the data audited by an overseas independent auditor, the name of the overseasindependent auditor shall be provided.
None.