Wuliangye Yibin Co., Ltd.
Interim Report 2024
Chairman of the Board: Zeng Congqin
29 August 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, Zhang Xin, 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. Eleven directors were supposed to attend the board meeting for the review of this Report.Nine of them were present at the meeting in person while Mr. Jiang Wenge and Mr. Xie Zhihuavoted by way of telecommunication for they were unable to be present due to work reasons.
4. The Company has no interim dividend plan, either in the form of cash or bonus issue.
5. 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 ...... 9
Part IV Corporate Governance ...... 22
Part V Environmental and Social Responsibility ...... 24
Part VI Significant Events ...... 28
Part VII Share Changes and Shareholder Information ...... 33
Part VIII Preference Shares ...... 37
Part IX Bonds ...... 37
Part X Financial Statements ...... 38
Documents Available for Reference
The following documents are available for shareholders at the Company’s Board Office:
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. All the Company’s documents and announcements that were disclosed on China SecuritiesJournal, Shanghai Securities News and Securities Times during the Reporting Period.
3. The 2024 Interim Report of the Company.
Definitions
| Term | refers to | Definitions |
| The “Company”, “Wuliangye”, “WLY”, or “we” | refers to | Wuliangye Yibin Co., Ltd. |
| Yibin Development Group | refers to | Yibin Development Holding Group Co., Ltd. |
| Wuliangye Group | refers to | Sichuan Yibin Wuliangye Group Co., Ltd. |
| Wuliang NongXiang Company | 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. |
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. (if any) | 五粮液 | ||
| Company name in English (if any) | WULIANGYE YIBIN CO.,LTD. | ||
| Abbr. (if any) | WLY | ||
| Legal representative | Zeng Congqin | ||
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 Other Information
1. Contact Information of the Company
Indicate whether any change occurred to the registered address, office address and their zip codes, websiteaddress, email address and other contact information of the Company in the Reporting Period.
□ Applicable ? Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2023Annual Report.
2. Media for Information Disclosure and Place where this Report Is Lodged
Indicate whether any change occurred to the information disclosure media and the place for lodging theCompany’s periodic reports in the Reporting Period.
□ Applicable ? Not applicable
The website of the stock exchange, the media and other website where the Company’s periodic reportsare disclosed, as well as the place for lodging such reports did not change in the Reporting Period. The saidinformation can be found in the 2023 Annual Report.
3. Other Information
Indicate whether any change occurred to other information in the Reporting Period.
□ Applicable ? Not applicable
IV Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ? No
| H1 2024 | H1 2023 | Change (%) | |
| Operating revenue (RMB) | 50,648,026,578.65 | 45,506,384,818.37 | 11.30% |
| Net profit attributable to the listed company’s shareholders (RMB) | 19,056,829,528.87 | 17,036,708,791.18 | 11.86% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 18,938,813,683.76 | 16,941,269,701.10 | 11.79% |
| Net cash generated from/used in operating activities (RMB) | 13,427,928,655.63 | 11,329,818,886.30 | 18.52% |
| Basic earnings per share (RMB/share) | 4.910 | 4.389 | 11.87% |
| Diluted earnings per share (RMB/share) | 4.910 | 4.389 | 11.87% |
| Weighted average return on equity (%) | 13.70% | 14.19% | Down by 0.49 percentage point |
| 30 June 2024 | 31 December 2023 | Change (%) | |
| Total assets (RMB) | 185,984,511,884.61 | 165,432,981,684.75 | 12.42% |
| Equity attributable to the listed company’s shareholders (RMB) | 130,487,961,186.03 | 129,558,241,040.51 | 0.72% |
V 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.
VI 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) | -4,657,535.12 | |
| 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) | 163,594,119.28 | |
| Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 426,869.99 | |
| Non-operating income and expense other than the above | 6,080,605.56 | |
| Less: Income tax effects | 41,341,400.04 | |
| Non-controlling interests effects (net of tax) | 6,086,814.56 |
| Total | 118,015,845.11 |
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 Principal Operations of the Company during the Reporting Period
The 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-flavour Chinese Baijiu, as well as a “GeographicalIndication of P.R. China” product. It is one of the first Chinese Geographical Indication products under theprotection of the European Union. Additionally, the Company has developed, based on different productiontechniques and market needs, Wuliang NongXiang Baijiu products such as Wuliang Chun (Spring), WuliangChun (Rich Flavour), Wuliang Tetouqu, and Mianrou Jianzhuang with complete categories and unique tastes tomeet the diverse needs of different consumers in pursuit of a better life.
The Company is subject to the disclosure requirements for the food and wine & liquor production industryin Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
1. Brand Operation
(1) Wuliangye-branded Baijiu Products
In the first half of 2024, the Company adhered to the general principle of “seeking progress in stability,maintaining stability with progress, improving quality and efficiency, and making more contributions” and themarketing principle of “boosting sell-through, stabilising prices, improving cost-effectiveness, and transformingworking styles”. As a result, it successfully achieved more than half of the annual targets for revenue and netprofit.
Firstly, the operation of three major products delivered new results. Specifically, the 8th-generationWuliangye saw steady increases in both price and sell-through. Since the Chinese New Year, Wuliangye-branded Baijiu products have shown a stable, upward trend. For Wuliangye 1618 and Wuliangye (39% vol), acombination of “banquet events + red pocket QR code + point of sale terminals ranking” drove increases in bothsell-through and banquet events.
Secondly, progress was made in channel development. The Company worked on market expansion byfocusing on the channel ecosystem and firmly supported its distributors in optimisation and enhancement. Itpushed ahead with the “Three Stores, One House” project, completed the 5th-generation storefront upgrade for634 exclusive stores and the construction of 639 “Wuliang NongXiang·A World of Harmony” comprehensivestores. Also, it redoubled efforts at banquet events to seize business opportunities, serving nearly three millionconsumers through these events.
Finally, brand promotion was carried forward to shape a new image. In terms of branding, theCompany has maintained high visibility through frequent hits. Specifically, the Company, once again, partneredwith China Central Television (“CCTV”) to exclusively sponsor the “Harmony Gifts” lucky draw during theSpring Festival Gala. It also launched the “Happy Chinese New Year” marketing event. In May, the 3rdWuliangye Harmony Cultural Festival kicked off, highlighted by the 520 Wuliangye Rose Wedding Ceremony.The Company also collaborated with Hunan TV to sponsor “Singer 2024”, a Chinese singing competition show,sustaining a high-quality branding trend that ensured “daily buzz and monthly hits”.
(2) Wuliang NongXiang Baijiu products
In the first half of 2024, Wuliang NongXiang Company persevered in “innovation with integrity whileexpanding territories, and making more contributions”. Focusing on key tasks such as product sell-through,market segmentation and hierarchy construction, the revaluation of brand, brand culture promotion, and marketfoundation consolidation, the Company made steady progress with hard work and determination.
Firstly, product sell-through saw rapid growth. Seizing opportunities during peak seasons such as theChinese New Year and the Dragon Boat Festival, the Company launched events such as “Get into the FestiveSpirit, Scan and Win More Prizes”, 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.
Secondly, the channel structure continued to improve. The market segmentation and hierarchyconstruction moved forward in an orderly manner, showing strong growth in key markets. Efforts to enhanceretail development resulted in greater quality and efficiency, while channel control was steadily strengthened. E-commerce, key accounts (“KAs”), and exclusive channels developed in tandem, further reinforcing the marketfoundation.
Thirdly, the rejuvenation of brand value has borne fruit. Guided by a market management system thatintegrates monitoring, early warning, inspection, handling, and accountability, the Company launched the valuerejuvenation campaign for proprietary brands, leading to a steady rise in the prices of main products.
Finally, cultural promotion has become more targeted. The Company continued to develop its “Get intothe Festive Spirit” IP, hosting targeted brand events such as “A Date with Spring” for Wuliang Chun (Spring),“Add a Touch of Fragrance to Every Moment” for Wuliang Chun (Rich Flavour). It also sponsored the “2024China Cup International City Orienteering Tour Match” through the brand “Wuliang Tetouqu”, and rolled outthe event “A Tribute to Every Act of Perseverance” for the brand “Jianzhuang”. These events have steadilyboosted the brand image.
2. Major Sales Models of the Company
Distribution model: This includes the traditional channel operator model, KA marketplace, etc., mainlysold offline.
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 salesmodel, where products are sold through e-commerce platforms such as Tmall and JD.
3. 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 | 47,110,718,721.26 | 8,203,080,533.11 | 82.59% | 12.46% | 12.63% | -0.02% |
| Of which: Distribution model | 27,593,788,277.69 | 5,601,755,361.78 | 79.70% | 13.51% | 12.46% | 0.19% |
| Direct-to-consumer model | 19,516,930,443.57 | 2,601,325,171.33 | 86.67% | 11.01% | 12.98% | -0.23% |
| By product category | ||||||
| Liquor products | 47,110,718,721.26 | 8,203,080,533.11 | 82.59% | 12.46% | 12.63% | -0.02% |
| Of which: Wuliangye-branded Baijiu | 39,205,013,434.81 | 5,217,061,192.72 | 86.69% | 11.45% | 12.39% | -0.11% |
| products | ||||||
| Other liquor products | 7,905,705,286.45 | 2,986,019,340.39 | 62.23% | 17.77% | 13.04% | 1.58% |
(2) Number of Distributors
| Region | Number of distributors of Wuliangye-branded Baijiu products | YoY change (number) | Reason for change (more than 30%) |
| East China | 760 | 67 | N/A |
| South China | 445 | 7 | |
| West China | 441 | -7 | |
| North China | 355 | 16 | |
| Central China | 529 | 15 | |
| Subtotal | 2,530 | 98 |
Region
| Region | Number of distributors of Wuliang NongXiang Baijiu products | YoY change (number) | Reason for change (more than 30%) |
| China | 950 | 268 | Wuliang NongXiang Company promoted intensive market development and implemented a flat marketing system in markets where it had no or a weak presence. |
| Total | 3,480 | 366 |
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiangBaijiu products.
(3) Main Settlement and Dealing Methods with 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 customers reached RMB10.698 billion, accounting for 21.12% ofthe 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 | 475 | 513 | N/A |
| South China | 285 | 299 | |
| West China | 280 | 279 | |
| North China | 244 | 255 | |
| Central China | 378 | 403 | |
| Total | 1662 | 1749 |
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 Flavour),
Wuliang Tequ, and Jianzhuang
| Wuliang Chun (Spring), Wuliang Chun (Rich Flavour), Wuliang Tequ, and Jianzhuang | Tmall, JD, and WeChat |
Indicate whether any of the major products that accounted for more than 10% of the total operatingrevenue in the current period saw a 30% or greater change in its selling price compared to the prior reportingperiod.
□ Applicable ? Not applicable
6. Purchase Model and Purchased Items
Unit: RMB
| Purchase model | Purchased items | Amount |
| Market-based purchase | Raw materials and auxiliary materials, etc. | 5,067,587,907.82 |
| Market-based purchase | Packaging materials | 1,127,156,534.06 |
| Market-based purchase | Energy | 348,266,345.32 |
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30%of the 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
7. Main Production Models
The Company's Baijiu products are all produced by itself.
Commissioned processing and production:
□ Applicable ? Not applicable
8. Breakdown of Cost of Sales
Unit: RMB
| Operating division | Item | H1 2024 | H1 2023 | Change in percentage | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Manufacturing | Raw materials | 6,367,500,886.67 | 55.53% | 5,616,897,534.41 | 53.15% | 2.38% |
| Labour cost | 3,355,054,459.35 | 29.26% | 3,368,194,710.33 | 31.87% | -2.61% | |
| Energy | 666,410,145.73 | 5.81% | 644,974,323.73 | 6.10% | -0.29% | |
| Production cost | 1,077,173,015.45 | 9.39% | 937,893,776.30 | 8.87% | 0.52% | |
9. 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) | ||||
| H1 2024 | YoY change | H1 2024 | YoY change | H1 2024 | YoY change | H1 2024 | YoY change | |
| Wuliangye-branded Baijiu products | 4,437 | 49.85% (note 2) | 22,910 | 10.74% | 24,194 | 12.07% | 3,153 | 52.91% (note 2) |
| Other liquor products | 43,885 | 115.47% (note 2) | 47,860 | -35.16% (note 3) | 54,156 | -23.86% | 37,589 | 63.05% (note 2) |
| Total | 48,322 | 107.14% | 70,770 | -25.12% | 78,350 | -15.50% | 40,742 | 62.22% |
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 a higher opening inventory base; anddue to a larger business size, the Company took the initiative to increase the stock of liquor products, resultingin an increase in the closing inventory.
Note 3: Mainly because Wuliang NongXiang Company continued to concentrate more on medium to highpriced products, resulting in decreased production and sales volumes of low priced products.
(2) Finished Liquor and Semi-finished Liquor (Including Base Liquor)
| Category | Inventory (ton) |
| Finished liquor | 40,742 |
| Semi-finished liquor (including base liquor in pottery jars) | 180,940 |
(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 in the first half of the year (’0,000 tons) | Production capacity in progress (’0,000 tons) |
| Liquor | 17.5627 | 7.8024 | 6 |
Note: The liquor in the table above includes Baijiu and base liquor.II Core Competitiveness AnalysisThe Company possesses five major competitive edges: the regions of production, ancient fermentation pitclusters, high product quality, a strong brand presence, and a broad consumer base. During the Reporting Period,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 distilling 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 forproducing high-quality, pure distilled Baijiu", making it one of the world's top ten regions of production ofspirits. In 2023, it was 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. These clusters were certifiedas a “National Industrial Heritage” of China in 2018 and have a scarcity value that is unrepeatable and non-reproducible.
High product quality represents the third competitive edge. Wuliangye possesses the unique "1366"traditional production technique that has been identified as a national intangible cultural heritage. It has as manyas 12 Chinese Baijiu Masters/Chinese Distilling Masters/Chinese Baijiu Technique Masters. Zhao Dong, theCompany’s General Technical Consultant, was selected as one of the sixth batch of representative bearers ofnational intangible cultural heritages. A through-life quality management model "from seed to liquor" has beenestablished. In China, Wuliangye is the only Baijiu producer with four "National Quality Awards" and the onlyBaijiu producer that was nominated for the 5
thChina Quality Awards. During the Reporting Period, incollaboration with the research team led by Jiang Lei, an academician with the Chinese Academy of Sciences(“CAS”), the Company uncovered the optimal range of alcohol by volume for Baijiu products in theprestigious international journal Matter. This paper, the first of its kind, proved that Wuliangye of differentalcohol volumes and relevant series of products all fall within this optimal range. This paper has been thehighest-impact research paper in China's Baijiu industry to date. Additionally, the Company came first andfourth at the 2nd China Baijiu NongXiang Liquor Body Design Competition.
The fourth is a strong brand presence. Wuliangye's brand culture has profound historical roots with ahistory of over a thousand years, beginning in the Tang dynasty, emerging in the Song dynasty, refined in theYuan dynasty, becoming famous in the Ming dynasty, and establishing the brand name in the Qing dynasty. Itpossesses a unique “Harmonious Culture”, an ancient fermentation pit culture, and a rich poetic and Baijiutradition. The advocacy of a harmonious culture of “harmonious common prosperity” continues to beprominently displayed. During the Reporting Period, Wuliangye innovatively released the “Research Report onHarmony” to further clarify the value connotation of its “Harmonious Culture”. Its brand value has maintaineddouble-digit growth for seven consecutive years, reaching RMB449.872 billion and ranking 15
th
on the list of
“2024 China's 500 Most Valuable Brands”. In terms of brand strength index, Wuliangye received the highestglobal AAA+ rating again, ranking first among Baijiu brands. Additionally, it has been awarded the “Foreigners’Most Favourite Chinese Brands” for three years in a row.
Finally, a broad consumer base. Strong-flavoured Baijiu is the Baijiu category with the highest marketshare and the largest consumer base. Being famous worldwide for its unique style of "lasting aroma, mellow,pleasant and smooth taste, and harmonious, well-balanced and comprehensive flavours", Wuliangye has a wideand solid consumer base. Notably, the industry's pioneering low-alcohol Baijiu possesses a unique competitiveadvantage in cultivating a young consumer demographic. During the Reporting Period, Wuliangye (39% vol)experienced a strong consumer demand, while the popularity of Propitious Purple Wuliangye among specificconsumer groups continued to grow. Furthermore, the Year of the Loong Baijiu became a highly sought-afterproduct.III Analysis of Principal Operations
Overview: please refer to the contents under the heading “I Principal Operations of the Company duringthe Reporting Period” above.
1. Year-on-year Changes in Key Financial Data
Unit: RMB
| H1 2024 | H1 2023 | Change (%) | Main reason for change | |
| Operating revenue | 50,648,026,578.65 | 45,506,384,818.37 | 11.30% | |
| Cost of sales | 11,466,138,507.20 | 10,567,960,344.77 | 8.50% | |
| Selling expense | 5,366,342,173.42 | 4,320,445,619.61 | 24.21% | |
| Administrative expense | 1,738,561,638.52 | 1,756,898,762.85 | -1.04% | |
| Finance costs | -1,400,855,109.46 | -1,250,071,396.41 | N/A | |
| Income tax expense | 6,563,541,257.72 | 5,879,733,314.24 | 11.63% | |
| Research and development expense | 159,760,941.28 | 135,677,515.04 | 17.75% | |
| Net cash generated from/used in operating activities | 13,427,928,655.63 | 11,329,818,886.30 | 18.52% | |
| Net cash generated from/used in investing activities | -1,069,383,823.78 | -1,344,448,683.36 | N/A | |
| Net cash generated from/used in financing activities | -157,849,148.32 | -10,807,912,902.24 | N/A | Note |
| Net increase in cash and cash equivalents | 12,200,695,683.53 | -822,542,699.30 | N/A | Note |
Note: Mainly because the Company’s 2023 final dividend plan was implemented in this July.
Indicate whether any significant change occurred to the profit structure or sources of the Company in theReporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Breakdown of Operating Revenue
Unit: RMB
| H1 2024 | H1 2023 | Change (%) | |||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating | ||
| revenue (%) | |||||
| Total | 50,648,026,578.65 | 100% | 45,506,384,818.37 | 100% | 11.30% |
| By operating division | |||||
| Manufacturing | 50,648,026,578.65 | 100.00% | 45,506,384,818.37 | 100.00% | 11.30% |
| By product category | |||||
| Liquor products | 47,110,718,721.26 | 93.02% | 41,891,531,380.50 | 92.06% | 12.46% |
| Plastic products | 1,981,033,159.97 | 3.91% | 1,630,576,660.51 | 3.58% | 21.49% |
| Printing | 50,553,920.22 | 0.10% | 74,747,681.17 | 0.16% | -32.37% (note) |
| Glass bottles | 48,683,476.63 | 0.10% | 59,030,590.99 | 0.13% | -17.53% |
| Others | 1,457,037,300.57 | 2.88% | 1,850,498,505.20 | 4.07% | -21.26% |
| By operating segment | |||||
| Liquor products | 47,110,718,721.26 | 93.02% | 41,891,531,380.50 | 92.06% | 12.46% |
| Of which: East China | 13,552,135,672.17 | 26.76% | 11,713,625,680.73 | 25.74% | 15.70% |
| South China | 3,496,256,070.40 | 6.90% | 3,516,633,542.62 | 7.73% | -0.58% |
| West China | 16,758,820,769.19 | 33.09% | 14,365,783,554.45 | 31.57% | 16.66% |
| North China | 4,841,310,361.21 | 9.56% | 4,475,867,727.32 | 9.84% | 8.16% |
| Central China | 8,462,195,848.29 | 16.71% | 7,819,620,875.38 | 17.18% | 8.22% |
| Non-liquor products | 3,537,307,857.39 | 6.98% | 3,614,853,437.87 | 7.94% | -2.15% |
Note: Mainly because the presswork was affected by the market environment and product iteration.
3. Operating Division, Product Category, or Operating Segment Contributing over 10% of OperatingRevenue 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) | 47,110,718,721.26 | 8,203,080,533.11 | 82.59% | 12.46% | 12.63% | -0.02% |
| By product category | ||||||
| Liquor products | 47,110,718,721.26 | 8,203,080,533.11 | 82.59% | 12.46% | 12.63% | -0.02% |
| Of which: Wuliangye-branded Baijiu products | 39,205,013,434.81 | 5,217,061,192.72 | 86.69% | 11.45% | 12.39% | -0.11% |
| Other liquor products | 7,905,705,286.45 | 2,986,019,340.39 | 62.23% | 17.77% | 13.04% | 1.58% |
| By operating segment | ||||||
| Liquor products | 47,110,718,721.26 | 8,203,080,533.11 | 82.59% | 12.46% | 12.63% | -0.02% |
| Of which: East China | 13,552,135,672.17 | 2,059,657,459.06 | 84.80% | 15.70% | 14.63% | 0.14% |
| South China | 3,496,256,070.40 | 488,121,708.11 | 86.04% | -0.58% | 4.21% | -0.64% |
| West China | 16,758,820,769.19 | 3,728,672,761.25 | 77.75% | 16.66% | 14.75% | 0.37% |
| North China | 4,841,310,361.21 | 668,971,370.38 | 86.18% | 8.16% | 8.81% | -0.08% |
| Central China | 8,462,195,848.29 | 1,257,657,234.31 | 85.14% | 8.22% | 8.97% | -0.10% |
Data of principal operations for the prior period adjusted according to the changed methods ofmeasurement that occurred in the Reporting Period (if any):
□ Applicable ? Not applicable
The Company is subject to the disclosure requirements for the food and wine & liquor production industryin Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
4. Breakdown of Selling Expense
Unit: RMB
Note: The Company's sales promotion expense covered three major categories: channel development, teamdevelopment and customer development. In order to further boost the confidence of merchants, the Companyincreased its marketing investment.
5. Advertising Expense
During the Reporting Period, the Company’s primary advertising means included TV, broadcasting, Internet,outdoor ads and exhibitions. The expenses on online, offline and TV ads were RMB128 million, RMB548 millionand RMB256 million, respectively.
IV Analysis of Non-Core Businesses
□ Applicable ? Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| Item | 30 June 2024 | 31 December 2023 | Change in percentage (%) | Reason for any significant change | ||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary assets | 128,714,842,080.74 | 69.21% | 115,456,300,910.64 | 69.79% | -0.58% | |
| Accounts receivable | 84,118,689.50 | 0.05% | 42,647,461.48 | 0.03% | 0.02% | |
| Inventories | 16,847,018,906.97 | 9.06% | 17,387,841,712.87 | 10.51% | -1.45% | |
| Long-term | 2,028,290,932.39 | 1.09% | 2,020,366,240.69 | 1.22% | -0.13% | |
Item
| Item | H1 2024 | H1 2023 | Change (%) | Reason for change | ||
| Amount | As % of selling expense | Amount | As % of selling expense | |||
| Image promotion expense | 932,275,200.41 | 17.37% | 759,134,414.08 | 17.57% | 22.81% | |
| Sales promotion expense | 3,440,601,772.58 | 64.11% | 2,612,938,992.07 | 60.48% | 31.68% | Note |
| Warehousing and logistics expense | 272,408,237.24 | 5.08% | 268,515,233.60 | 6.21% | 1.45% | |
| Labor cost | 455,092,791.02 | 8.48% | 459,063,335.23 | 10.63% | -0.86% | |
Other expenses
| Other expenses | 265,964,172.17 | 4.96% | 220,793,644.63 | 5.11% | 20.46% | |
| Total | 5,366,342,173.42 | 4,320,445,619.61 | 24.21% |
| equity investments | ||||||
| Fixed assets | 5,144,267,933.32 | 2.77% | 5,189,917,302.17 | 3.14% | -0.37% | |
| Construction in progress | 6,809,490,371.99 | 3.66% | 5,623,356,422.20 | 3.40% | 0.26% | |
| Right-of-use assets | 980,047,470.78 | 0.53% | 126,810,315.49 | 0.08% | 0.45% | |
| Contract liabilities | 8,157,503,632.65 | 4.39% | 6,864,383,635.25 | 4.15% | 0.24% | |
| Lease liabilities | 646,160,709.88 | 0.35% | 115,722,608.68 | 0.07% | 0.28% |
2. Major Assets Overseas
□ Applicable ? Not applicable
3. 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) | ||||||||
| 2. Derivative financial assets | ||||||||
| 3. Other debt investments | ||||||||
| 4. Other equity investments | ||||||||
| 5. Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | ||||||
| 6. Receivables financing | 14,086,450,565.79 | 5,489,979,940.11 | 19,576,430,505.90 | |||||
| Subtotal of financial assets | 14,087,650,565.79 | 5,489,979,940.11 | 19,577,630,505.90 | |||||
| Investment property | ||||||||
| Productive living assets | ||||||||
| Other | ||||||||
| Total of the above | 14,087,650,565.79 | 5,489,979,940.11 | 19,577,630,505.90 | |||||
| Financial liabilities |
Contents of other changes:
The Company classified the portion of bank acceptance bills received that were to be endorsed ordiscounted as receivables financing, and other changes during the current period represented the net amountrecognized and utilized during the current period.Indicate whether any significant change occurred to the measurement attributes of the major assets in theReporting Period.
□ Yes ? No
4. Restricted Assets as at the Period-end
Unit: RMB
| Item | Closing carrying amount | Reason for restriction |
| Monetary assets | 234,648,885.56 | 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
| Total | 234,648,885.56 |
VI 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.
VII 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
VIII Principal Subsidiaries and Joint Stock Companies? Applicable □ Not applicablePrincipal 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 | Sale of liquor, etc. | 200,000,000.00 | 68,041,092,862.64 | 46,504,177,947.58 |
Unit: RMB
| Name | Relationship with the Company | Principal activities | Operating revenue | Operating profit | Net profit |
| Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Sale of liquor, etc. | 38,924,211,000.09 | 16,616,194,521.42 | 12,460,145,152.08 |
Subsidiaries acquired or disposed of in the Reporting Period:
□ Applicable ? Not applicable
IX Structured Entities Controlled by the Company
□ Applicable ? Not applicable
X Risks Facing the Company and Countermeasures
Firstly, 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,may be increasingly intense. In response, the Company will adhere to its strategic focus, implement the “135”strategy in depth, and continue to strengthen its five major competitive edges. With ecological development asthe big picture, quality as the key, culture as the foundation, digital transformation as the driver and soundcorporate governance as the support, the Company will strive for sustainable, solid and high-qualitydevelopment.XI 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 DevelopmentQuality and Investor Returns”.
? Yes □ No
In order to comprehensively implement the guiding principles of the Political Bureau meeting on"activating the capital market and boosting investor confidence" and the State Council Executive Meeting on"vigorously enhancing the quality and investment value of listed companies, adopting more effective measures,focusing on stabilizing the market and confidence", the Company disclosed the Action Plan for "DualEnhancement of Development Quality and Investor Returns" (Announcement No.: 2024/No. 002) on 7 March2024. The implementation of the action plan is as follows.
(I) Strengthen development and strive to accelerate the journey to become a world-leadingenterprise
Firstly, the Company has maintained steady and robust growth in operating performance. The
Company adhered to the working principles of "seeking progress in stability, maintaining stability with progress,improving quality and efficiency, and making more contributions", solidly carried out its work, and tookscientific actions, achieving new heights in corporate development. In the first half of 2024, the Companyachieved operating revenue of RMB50.648 billion, an increase of 11.30% year on year; and the net profitattributable to its shareholders was RMB19.057 billion, an increase of 11.86% year on year. The Companymaintained steady growth in operating performance.
Secondly, the driving force for innovative development continued to strengthen. The Company furtherpromoted supply-side structural innovation with liquor body innovation and production technique innovation asthe core. It launched Wuliangye (45% vol) and Wuliangye (68% vol), as well as the full range of ClassicWuliangye (10%, 20%, 30% and 50% vol), making every effort to create new growth drivers. In collaborationwith the research team led by Jiang Lei, an academician with the Chinese Academy of Sciences (“CAS”), theCompany uncovered the optimal range of alcohol by volume for Baijiu products in the prestigious internationaljournal Matter. This paper, the first of its kind, proved that Wuliangye of different alcohol volumes and relevantseries of products all fall within this optimal range. This paper has been the highest-impact research paper inChina's Baijiu industry to date, which is of great significance to build a scientific system for sensory evaluationof Wuliangye Baijiu and even all the products in the Baijiu industry.Thirdly, the Company had a stronger brand presence. The Company was, once again, in the spotlightby sponsoring CCTV's 2024 Spring Festival Gala. Additionally, the Company was invited to participate in the2024 New Year's Eve countdown celebrations in New York City's Times Square, capturing the attention ofhundreds of millions of people worldwide. Its brand value has maintained double-digit growth for sevenconsecutive years, reaching RMB449.8 billion. In terms of brand strength index, Wuliangye received thehighest global AAA+ rating again, ranking first among Baijiu brands.Finally, technological upgrade projects showed strong momentum. The Company continued to pushforward with major ongoing projects. Specifically, the Ecological Distillery Project (Phase I) graduallycommenced production, ensuring consistent output and high quality. The intelligent distilling demonstrationworkshop is now up and running. Additionally, the Company has successfully installed an automated packagingline.(II) Strengthen compliance and continuously improve corporate governanceFirstly, the information disclosure continued to be strengthened. The Company continued to strengthenits learning of the Stock Listing Rules and other applicable regulations, and strengthen information disclosuremanagement. It has won the highest level (A) assessment of information disclosure from the Shenzhen StockExchange for nine consecutive years. Since 2024, the Company has compiled and disclosed 55 periodic reportsand current announcements, conveying relevant information on its production and operation in a timely mannerwith increasing transparency.
Secondly, the governance system continued to be optimised. The Company currently has elevendirectors, including five internal directors and six 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. During the first half of 2024, the Company convened seven Board meetings,deliberating on 24 proposals, including matters related to profit distribution, actively implementing thefunctions of the Board of Directors, and ensuring efficient and orderly management of the Company.
Finally, the supervision mechanism continued to be sound. Since 2024, the independent directorsattended one special meeting of independent directors and seven Meetings of the Board of Directors, whilecontinuing to pay attention to the Company's information disclosure work, objectively evaluating the timelinessand accuracy of information disclosure, and independently and prudently expressing opinions to ensure the
normative, compliant, and effective operation of the Board of Directors; the Company's Supervisory Committeeindependently exercised its powers in accordance with the law, supervised the Company's lawful operations,financial status, related transactions, external guarantees, and actively safeguarded the legitimate rights andinterests of all shareholders, the Company, and employees.(III) Strengthen returns and continuously increase shareholder returnsThe 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.The Company’s total cash dividend amount for 2023 was RMB18.127 billion, representing a cash dividendpayout ratio of 60%. Both the dividend amount and the dividend payout ratio were the highest since theCompany went public, and the dividend payout was completed on 12 July 2024.
(IV) Strengthen confidence with the largest shareholder increasing its shareholding in the CompanyWuliangye Group initiated a plan to increase its shareholding in the Company on 14 December 2023, andhas cumulatively purchased 3,406,668 additional shares with an amount of RMB500.0016 million, accountingfor 0.09% of the Company’s total share capital. So far, the implementation of the shareholding increase plan hasbeen completed.(V) Strengthen communication and continuously optimise investor relations managementThe Company always adhered to the principles of "compliance, equality, proactivity, and honesty andtrustworthiness", continuously optimised investor relations management, and built various communicationplatforms. During the Reporting Period, the Company held the "2023 Annual and 2024 First Quarterly ResultsBriefing" and the "2023 Annual General Meeting of Shareholders", actively listening to investors' opinions andsuggestions, improving the effectiveness and pertinence of communication, and ensuring the equal participationof minority shareholders. During the Reporting Period, the Company communicated with a total of more than1,300 investors through the annual general meeting of shareholders, one-on-one meetings, securities firms’investment conferences, conference calls and other forms.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 fulfill theresponsibilities and obligations of a listed company, enhance investor confidence, and achieve sustained high-quality development of the Company.
Part IV Corporate Governance
I 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 2023 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 72.03% | 28 June 2024 | 29 June 2024 | See the Announcement on Resolutions of the 2023 Annual General Meeting of Shareholders (2024/No. 024) |
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholderswith Resumed Voting Rights
□ Applicable ? Not applicable
II Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable
| Name | Office title | Type of change | Date | Reason |
| Han Chengke | Director | Elected | 28 June 2024 | Elected at a general meeting of shareholders |
| Zhang Xin | Director | Elected | 28 June 2024 | Elected at a general meeting of shareholders |
| Li Shuai | Supervisor | Elected | 28 June 2024 | Elected at a general meeting of shareholders |
| Zhu Yongliang | Supervisor | Elected | 28 June 2024 | Elected at a general meeting of shareholders |
| Zhang Xin | Board Secretary | Appointed | 19 April 2024 | Appointed by the Board of Directors |
| Chief Financial Officer | 25 June 2024 | |||
| Jiang Jia | Deputy General Manager | Appointed | 2 February 2024 | Appointed by the Board of Directors |
| Chief Economist | Former | 2 February 2024 | Dismissed by the Board of Directors for the reason of job change | |
| Jiang Lin | Board Secretary | Former | 19 April 2024 | Dismissed by the Board of Directors for the reason of job change |
| Xie Zhiping | Chief Financial Officer | Former | 2 February 2024 | Dismissed by the Board of Directors for the reason of job change |
| Liu Yang | Deputy General Manager | Former | 2 February 2024 | Dismissed by the Board of Directors for the reason of job change |
III Profit Distributions in the Form of Cash and/or Bonus Issue
□ Applicable ? Not applicable
The Company has no interim dividend plan, either in the form of cash or bonus issue.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measuresfor Employees? Applicable □ Not applicable
1. Equity Incentives
□ Applicable ? Not applicable
2. Employee Stock Ownership Plans
? Applicable □ Not applicableOutstanding 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,and certain in-service directors, supervisors and senior management participated in the employee stockownership 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
3. 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 applicable
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.
4. Other Incentive Measures for Employees
□ Applicable ? Not applicable
Part V Environmental and Social ResponsibilityI Major Environmental IssuesIndicate whether the Company or any of its subsidiaries was identified as a major polluter byenvironmental authorities.? Yes □ No
1. Policies and Industry Standards on Environmental Protection
The Company strictly complies with environmental protection laws, regulations, and relevant policies. Inline with the environmental management system, the Company has compiled a list of updates in accordancewith environmental laws, regulations, standards, and other requirements. In 2024, it identified and collected 186relevant laws, regulations, and requirements. Meanwhile, taking into account its realities, the Companyformulated 17 policies on environmental protection, and developed the internal control standard—DistillingWastewater Discharge Standard, which is stricter than the national and Sichuan provincial requirements. Andthe Company ensures that all environmental protection concepts and requirements are implemented into everyaspect of daily production and operation activities.
2. Administrative Licenses of Environmental Protection
The Company has adhered strictly to national administrative licence requirements for environmentalprotection, completed environmental impact assessments, obtained discharge licenses for its projects as required,and conducted environmental compliance self-inspections upon project completion. In January 2024, it renewedits discharge licence, and the new discharge licence is valid until November 2024.
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 | Air pollutants | Particulate matter | Organized discharge | 9 | Coal to Gas Phase I | 10.3 mg/m? | 20 mg/ m? | / | N/A | / |
| Sulfur dioxide | 21.4 mg/ m? | 50 mg/ m? | / | N/A | / | |||||
| Oxynitride | 100.7mg/ m? | 150 mg/ m? | 27 | 50.5 | / | |||||
| Particulate matter | 6 | Coal to Gas Phase II | 2.9 mg/ m? | 20 mg/ m? | 0.1 | 4.8 | / | |||
| Sulfur dioxide | 5.6 mg/ m? | 50 mg/ m? | 0.5 | 2 | / | |||||
| Oxynitride | 99.6 mg/ m? | 150 mg/ m? | 19.4 | 27.4 | / | |||||
| Particulate matter | 3 | Coal to Gas Phase III | 4.2 mg/ m? | 20 mg/ m? | 0.04 | 1.9 | / | |||
| Sulfur dioxide | 5.3 mg/ m? | 50 mg/ m? | 0.15 | 0.8 | / | |||||
| Oxynitride | 95.7 mg/ m? | 150 mg/ m? | 6.72 | 10.96 | / | |||||
| Particulate matter | 10 | Hot water | / | 20 mg/ m? | / | N/A | / |
| Sulfur dioxide | boilers | / | 50 mg/ m? | 0.0002 | 0.08 | / | |||
| Oxynitride | 105 mg/ m? | 150 mg/ m? | 0.1 | 0.89 | / | ||||
| Water pollutants | COD | Direct discharge | 1 | Wuliangye Ecological Wetland | 25.6mg/L | 40 mg/L | 44.8 | 72 | / |
| Ammonia nitrogen | 1 | 0.3 mg/L | 3 mg/L | 0.8 | 5.4 | / | |||
| Total nitrogen | 1 | 7mg/L | 15 mg/L | 12.5 | 27 | / | |||
| Total phosphorus | 1 | 0.1mg/L | 0.5 mg/L | 0.3 | 0.9 | / |
4. Treatments of Pollutants
The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone in theJiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewater treatment,with a daily capacity of 10,000 tons. The advanced treated tailwater in compliance with the applicable standards isdischarged after being further purified by ecological wetlands. The system is functioning normally.
At present, the Company has built 18 20t/h natural gas boilers in the Jiangbei industrial park and put theminto operation, which adopts 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, and the wastewater treatment station is equipped with odour gas collection and treatmentfacilities, which are all functioning normally.
5. Contingency Plan for Environmental Emergencies
The Company has formulated and issued the Contingency Plan on Unexpected Environmental Events inYibin City Wuliangye Industrial Park, Contingency Plan on Unexpected Environmental Events of WuliangyeYibin Co., Ltd., Contingency Plan on Unexpected Environmental Events of Wuliangye Yibin Co., Ltd. (SpecialPlan for Baijiu Storage Tanks), and Contingency Plan on Unexpected Environmental Events of WuliangyeYibin Co., Ltd. (Special Plan for Wastewater). Concurrently, updates have been made to the risk assessmentreports and environmental contingency resource survey reports for environmental emergencies.
6. Spending on Environmental Protection and Payment of Environmental Protection Tax
Pollution control costs attributable to the H1 2024 period totalled RMB139.38 million and environmentalprotection tax payments were RMB0.23 million.
7. Environmental Self-Monitoring Plan
The Company has developed a self-monitoring plan in line with the requirements of the discharge licence,and completed self-monitoring strictly according to the prescribed monitoring frequency and the requirementsof monitoring projects. The results showed that the concentration and emission rate of air pollutants were withinthe permissible limits; the concentration of air pollutants at the plant boundary met the limit requirements offugitive emission monitoring; the concentration of water pollutants discharged was within the permissibledischarge limit; and the noise levels at the plant boundary were within the permissible limits. Additionally, itconducted rainwater outlet monitoring as required.
8. Administrative Penalties Imposed for Environmental Issues during the Reporting Period
None.
9. Other Environmental Information that should Be Disclosed
None.
10. Measures Taken to Reduce Carbon Emissions in the Reporting Period and the Results
? Applicable □ Not applicableThe existing biogas power generation facilities of the wastewater treatment stations generatedapproximately 2.8 million kWh of electricity, reducing greenhouse gas emissions by approximately 600 tons.And the biogas power generation facilities of the new centralised wastewater treatment plant are underconstruction.
11. Other Environmental Information
The Company organised and conducted internal reviews and assessments of its energy management systemand environmental management system. In addition, a third-party organisation was hired to conduct externalreviews of the Company's energy management system and environmental management system. The Companypassed these reviews and received the relevant certificates. The Company entrusted a third-party organisation tocarry out reviews of its greenhouse gas emissions in 2023 and received the relevant review statement.
II Corporate Social Responsibility (CSR)
In the first half of 2024, the Company thoroughly studied and implemented General Secretary Xi Jinping'simportant speeches and guiding principles on effectively connecting the consolidation and expansion ofachievements in poverty alleviation with rural revitalisation. In response to the provincial and municipaldecisions and arrangements for necessary and paired assistance, it focused on addressing the major weaknessesand shortcomings that hinder the development of assisted areas such as Litang and Pingshan counties. Byprioritising industrial and project-based assistance, it revolved around key tasks of the year, driving allinitiatives forward with a strong sense of mission, responsibility, and urgency. The Company's assistance modeland achievements were highlighted in the Daily Report submitted by the General Office of the CPC SichuanProvincial Committee to the leaders of the CPC Sichuan Provincial Committee. Additionally, a special reporttitled “Wuliangye Supports High-Quality Development of Litang County's Distinctive Agriculture and AnimalHusbandry” was circulated across the province by the United Front Work Department of the CPC SichuanProvincial Committee.
1. Paired Assistance to Litang County
Firstly, in terms of overall arrangements, the Company has established an assistance steering group headedby the Secretary of the CPC Committee and Chairman of the Board. This group includes a task force to providenecessary, paired assistance to four villages under four townships or towns in Litang County. Upon consultationwith Litang County, the Company developed a 2024 assistance plan that outlines eight key tasks of the year anda funding plan of RMB46.4 million. It also completed the “One Enterprise, One Policy” necessary assistanceplan and executed the “Agreement on Guiding County-Enterprise Common Growth through Party Building”with Litang County. According to this agreement, both parties will continue to deepen cooperation andexchanges in collaborative Party building, the development of distinctive agricultural and cultural tourismindustries in the Tibetan Plateau, market expansion, education, and talent projects. The Company hasundertaken to invest, on an annual basis, at least RMB10 million to support Litang County from 2024 to 2027.
Secondly, regarding visits and exchanges, the Company has strictly implemented regular mechanisms forcounty-enterprise interactions, including regular visits, special meetings, and surveys. Several trips, led by theCompany’s management, have been made to Litang County for field surveys. Leaders from the subsidiariesjoining the “Three-level Assistance” programme have visited the four townships or towns and four villages thatreceive paired assistance from the Company. The trip aimed to explore the Sacred Genie Mountain and itssurrounding tourism resources, Cunge Township's rural collective industry-hot springs, the Wuliangyemushroom base, and the Litang Logistics Industry Park. The Company held the Wuliangye-Litang County“Three-level Assistance” Work Symposium, where key officials from the People's Government of LitangCounty and the CPC Litang County Committee were invited to the Company to discuss industrial assistance
directions, project selection, and the establishment of assistance mechanisms. Ultimately, both sides reached aconsensus.Finally, as to the progress of key projects, particularly centralised procurement, the Company proposes topurchase agricultural and other distinctive products with a combined budget of RMB10 million from LitangCounty in 2024. The procurement is expected to be fully completed by the Mid-Autumn Festival. In terms ofbase upgrading, the Company proposes to invest RMB3 million in 2024 to upgrade the winter warm-typemushroom sheds in the mushroom base. A preliminary renovation plan has been developed and will beimplemented upon confirmation by the county. Concerning grassroots infrastructure development, the Companyproposes to invest RMB2 million in supporting the construction of village-level Party building infrastructure inLitang County's Mula Town, including the construction of Mayan Village's Party service centre and NaishaVillage's community activity centre. The Company aims to continuously improve grassroots governancefacilities. The construction plans and sites have been determined. With respect to support for talent cultivation,the Company proposes to invest RMB0.4 million in 2024 in the “Wuliangye-Litang University StudentCultivation Programme” to provide a job practice platform for “jobless university graduates who have returnedto their hometown”. The first batch of ten graduates has been recruited and assigned to grassroots positions inassisted villages. The Company will also provide 20 outstanding, financially disadvantaged students withRMB5,000 each in student grants. Additionally, it will implement the “Assist Disabled Students·Caring Project”by donating two school libraries worth a total of RMB0.12 million to Litang County. These libraries areexpected to contain over 4,000 books spanning categories such as history, astronomy, classic stories, guides, andlife knowledge.
2. Paired Assistance to Pingshan County
Firstly, regarding new assistance efforts, the Company has dispatched 11 staff members to the assistedvillages. All of them are CPC members, including five members of middle ranks or higher. They have reportedfor duty by the end of July.Finally, regarding the progress of key projects, particularly the development of industrial bases, theCompany replanted 70,000 tea seedlings on the 200-mu high-mountain selenium-rich organic tea base inYingxiong Village, Qingping Yi Ethnic Township, Pingshan County, to ensure proper planting density.Additionally, the Company has completed the construction of sightseeing platforms and roads, and continued toimprove subsequent maintenance and operational support. In the 200-mu high-mountain edible bamboo shootbase in Yingxiong Village, land levelling was completed, and 60,000 bamboo seedlings were planted. Thisinitiative has encouraged surrounding communities to plant over 210,000 bamboo seedlings. Concerningassistance through product consumption, during the Chinese New Year, the Company made targeted andcentralised procurement of agricultural and distinctive products, such as honey, from Pingshan County,amounting to RMB1.93 million. In terms of educational assistance, the Company implemented the “AssistDisabled Students·Caring Project” by donating libraries to three schools in Pingshan County, worth a total ofRMB0.18 million. These libraries are expected to contain over 6,000 books in categories such as history,astronomy, classic stories, guides, and life knowledge. It also conducted a “Warm Winter Action” donationevent at Starbase School in Qingping Yi Ethnic Township in Pingshan County. At this event, daily supplies suchas down jackets, scarves, hats, gloves, and socks were donated to over 200 students, with a total value of overRMB60 thousand. The Company also provided student grants of RMB2,000 each to 39 financially neededfamilies in Qingping Yi Ethnic Township in Pingshan County with university-bound students.
Part VI Significant Events
I Undertakings of the Company’s Actual Controller, Shareholders, Related Parties andAcquirers, as well as the Company Itself and other Entities Fulfilled in the Reporting Periodor 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.II Occupation of the Company’s Funds by the Controlling Shareholder or Any of ItsRelated Parties 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 Appointment and Dismissal of CPA Firm
Indicate whether the interim financial statements are audited.
□ Yes ? No
The interim financial statements are unaudited.V Statements Made by the Board of Directors and the Supervisory Committee Regardingthe Independent Auditor's “Modified Opinion” on the Financial Statements of theReporting Period
□ Applicable ? Not applicable
VI Statement Made by the Board of Directors Regarding the “Modified Opinion” of anIndependent Auditor on Financial Statements of Last Year
□ Applicable ? Not applicable
VII Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.VIII Legal Matters
Significant lawsuits and arbitrations:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Other legal matters:
? Applicable □ Not applicable
| General information | Amount involved (RMB’0,000) | Whether any provision is made | Progress | Result and impact | Execution of judgment | Date of disclosure | Index to disclosed information |
| Contract dispute between Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. and Chengdu Pomegranate Agricultural Products Development Co., Ltd. | 492.68 | No | The first-instance judgment has taken effect. | The court has ordered the enforcement of an asset auction. | The enforcement has not yet been carried out. | ||
| Contract dispute between Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. (hereinafter referred to as “Shenzhou”) and Yibin Yuxiang Packaging Materials Co., Ltd. (hereinafter referred to as “Yuxiang”) | 574.14 | No | In June 2023, the court ruled that Yuxiang should compensate Shenzhou a total of RMB5.7414 million. | Yuxiang fails to fulfil the judgment on time. | The enforcement has not yet been carried out. | ||
| Construction contract dispute between the Company and Xi'an Construction Engineering Group Co., Ltd. (hereinafter referred to as “Xi'an Construction Engineering Group”) | 2,162.33 | No | In April 2023, the People's Court of Cuiping District, Yibin City, made the first-instance judgment, requiring Xi'an Construction Engineering Group to compensate the Company for various losses totalling RMB7.5327 million. After offsetting the outstanding project payments, Xi'an Construction Engineering Group shall still pay the Company RMB1.7194 million. Both parties appealed against the first-instance judgment. The second-instance court dismissed the appeal and upheld the original judgment. | Xi'an Construction Engineering Group is currently paying the Company the outstanding payment. | The enforcement is underway. | ||
| The “Phoenix Series” illustrations of the Company's “Bainiao Chaofeng” brand are suspected to have infringed upon Li Linxin's copyright. | 100.00 | No | Pre-litigation mediation. | None for now. | The enforcement has not yet been carried out. | ||
| Contract dispute between Handan Yongbufenli Liquor Co., Ltd. (hereinafter referred to as “Yongbufenli”) and Chengdu Yuexin Liquor Co., Ltd. (hereinafter referred to as “Yuexin | 10,049.28 | No | In October 2022, Yongbufenli filed a lawsuit with the Intermediate People's Court of Handan against Yuexin Liquor, requesting a) payment of RMB100.4928 million in outstanding payments from the defendant, plus interest calculated | The second-instance court session has been opened. | The judgment has not yet been made. |
| Liquor”) | at the Loan Prime Rate (“LPR”) from 21 July 2020 to the date when the payment is made in full; and b) the defendant to bear all litigation and appraisal fees. In March 2023, the first-instance judgment dismissed Yongbufenli's claims. In April 2023, Yongbufenli filed a second-instance appeal with the Supreme People's Court of Hebei, and the case was reopened on 10 April 2024. The judgment has not yet been made. | ||||||
| Case of Handan Yongbufenli Liquor Co., Ltd. suing Handan Yongbufenli Zaiyang Liquor Co., Ltd. for overdue payment | 211.41 | No | The hearing was held on 27 April 2023, with the defendant absent. On 11 May, a judgment was issued ordering the defendant to pay the overdue payment. Due to the inability to notify the judgment defaulter, the enforcement notice was served by public announcement. | The second public announcement for enforcement has ended, and the court has issued a final ruling. | The court has issued a final ruling. | ||
| Contract dispute between Handan Yongbufenli Liquor Co., Ltd. (hereinafter referred to as “Yongbufenli”) and Sichuan Baijiadi Liquor Co., Ltd. (hereinafter referred to as “Baijiadi”) | 7,246.35 | No | In January 2022, Yongbufenli filed a lawsuit with the People's Court of Linzhang County against Baijiadi over a sales contract dispute involving an amount of RMB72.4635 million. The court was requested to a) order the defendant to pay RMB72.4635 million, along with the interest calculated at the LPR published by the National Interbank Funding Center from 16 September 2020 to the date when the payment is made in full; and b) order the defendant to bear all litigation and appraisal fees. The first-instance judgment dismissed Yongbufenli's claims. In April 2024, Yongbufenli filed an appeal with the Intermediate People's Court of Handan. | The case is currently under a second-instance hearing. | The judgment has not yet been made. |
IX Penalties and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.X Credit Standings of the Company as well as Its Controlling Shareholder and ActualController
□ Applicable ? Not applicable
XI 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 | 5,500,000 | 0.42%-3.5% | 4,029,953.75 | 818,109.62 | 673,229.07 | 4,174,834.30 |
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 | 1,935.53 |
Note: On 28 June 2024, the Company and Wuliangye Group Finance signed the Financial ServiceAgreement, agreeing that the daily total balance of outstanding loans and unused credit with Wuliangye GroupFinance shall not exceed RMB10 billion in 2024.
The “amount incurred” in the Reporting Period includes the bank acceptance bills of RMB19.3553 millionissued by Wuliangye Group Finance (undue bank acceptance bills as of 30 June 2024: RMB19.3553 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.
XII 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 for Wealth Management
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Other Significant Events
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIV Significant Events of Subsidiaries
? Applicable □ Not applicable
As approved at the Second Meeting of the Sixth Board of Directors of 2024 dated 19 April 2024, theCompany’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited hasincorporated “Sichuan Yibin Plastic Packaging Products Co., Ltd.” (hereinafter referred to as “PlasticPackaging Products”). Plastic Packaging Products has a registered capital of RMB50 million, and the Companyowns 100% of Plastic Packaging Products.
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% | 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% | 82,098 | 0.00% | |||||
| Of which: Shares held by domestic corporations | |||||||||
| Shares held by domestic individuals | 82,098 | 0.00% | 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% | 3,881,525,907 | 100.00% | |||||
| 1. RMB-denominated ordinary shares | 3,881,525,907 | 100.00% | 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
Progress on any share repurchase:
□Applicable ? Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□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 thelatest accounting 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
□ Applicable ? Not applicable
III Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
| Number of ordinary shareholders at the period-end | 605,118 | Number of preference shareholders with resumed voting rights at the period-end (if any) (see note 8) | 0 | ||||||
| 5% or greater ordinary shareholders or top 10 ordinary shareholders (exclusive of shares lent in refinancing) | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total ordinary shares held at the period-end | Increase/decrease in the Reporting Period | Restricted ordinary shares held | Unrestricted ordinary 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 | 20.49% | 795,230,011 | 3,406,668 | 795,230,011 | ||||
| Hong Kong Securities Clearing Company Limited | Overseas corporation | 4.79% | 185,881,215 | 10,991,548 | 185,881,215 | ||||
| China Securities Finance Corporation Limited | Other | 2.38% | 92,385,936 | 92,385,936 | |||||
| Bank of China Limited－China Merchants China Securities Baijiu Index | Other | 1.33% | 51,481,362 | -5,636,617 | 51,481,362 | ||||
| Classification Securities Investment Fund | ||||||||||
| 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 | 0.68% | 26,400,000 | -2,980,000 | 26,400,000 | |||||
| China Life Insurance Company Limited－Traditional－General Insurance Product-005L-CT001 Shanghai | Other | 0.62% | 23,951,250 | 422,519 | 23,951,250 | |||||
| Industrial and Commercial Bank of China Limited -Huatai Bairui CSI 300 Traded Open-ended Index Securities Investment Fund | Other | 0.59% | 22,838,574 | 8,226,365 | 22,838,574 | |||||
| Industrial and Commercial Bank of China Limited－Invesco Great Wall Newly Growth Mixed Securities Investment Fund | Other | 0.46% | 17,678,300 | -751,200 | 17,678,300 | |||||
| Strategic investor or general corporation becoming a top-10 ordinary 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 11) | N/A | |||||||||
| Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and locked-up shares of senior management) | ||||||||||
| Name of shareholder | Unrestricted ordinary 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. | 795,230,011 | RMB-denominated ordinary shares | 795,230,011 | |||||||
| Hong Kong Securities Clearing Company Limited | 185,881,215 | RMB-denominated ordinary shares | 185,881,215 | |||||||
| 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 | 51,481,362 | RMB-denominated ordinary shares | 51,481,362 | |||||||
| 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 | 26,400,000 | RMB-denominated ordinary shares | 26,400,000 |
| China Life Insurance Company Limited－Traditional－General Insurance Product-005L-CT001 Shanghai | 23,951,250 | RMB-denominated ordinary shares | 23,951,250 |
| Industrial and Commercial Bank of China Limited -Huatai Bairui CSI 300 Traded Open-ended Index Securities Investment Fund | 22,838,574 | RMB-denominated ordinary shares | 22,838,574 |
| Industrial and Commercial Bank of China Limited－Invesco Great Wall Newly Growth Mixed Securities Investment Fund | 17,678,300 | RMB-denominated ordinary shares | 17,678,300 |
| Related or acting-in-concert parties among top 10 unrestricted ordinary shareholders, as well as between top 10 unrestricted ordinary shareholders and top 10 ordinary 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 | ||
5% or greater shareholders, top 10 shareholders and top 10 unrestricted public shareholders involved inrefinancing shares lending:
□Applicable ? Not applicable
Changes in top 10 shareholders and top 10 unrestricted public shareholders due to refinancing shareslending/return compared with the prior period:
□Applicable ? Not applicable
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.IV Changes in Shareholdings of Directors, Supervisors and Senior Management
□Applicable ? Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in theReporting Period. See the 2023 Annual Report for more details.V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
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 ReportIndicate whether the interim financial statements are audited.
□ Yes ? No
The interim financial statements are unaudited.II Financial StatementsMonetary 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. 30 June 2024 Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Monetary assets | 128,714,842,080.74 | 115,456,300,910.64 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | 3,650,281.25 | |
| Accounts receivable | 84,118,689.50 | 42,647,461.48 |
| Receivables financing | 19,576,430,505.90 | 14,086,450,565.79 |
| Prepayments | 160,861,414.58 | 169,425,745.15 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 51,547,943.32 | 39,624,933.74 |
| Of which: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 16,847,018,906.97 | 17,387,841,712.87 |
| Of which: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | ||
| Total current assets | 165,438,469,822.26 | 147,182,291,329.67 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 2,028,290,932.39 | 2,020,366,240.69 |
| Other equity investments | ||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
| Investment property | ||
| Fixed assets | 5,144,267,933.32 | 5,189,917,302.17 |
| Construction in progress | 6,809,490,371.99 | 5,623,356,422.20 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 980,047,470.78 | 126,810,315.49 |
| Intangible assets | 2,646,157,958.12 | 2,056,870,639.03 |
| Of which: Data resources | ||
| Development costs | ||
| Of which: Data resources | ||
| Goodwill | 1,621,619.53 | 1,621,619.53 |
| Long-term prepaid expense | 149,194,939.46 | 163,120,023.86 |
| Deferred income tax assets | 2,493,692,024.42 | 2,242,610,567.82 |
| Other non-current assets | 292,078,812.34 | 824,817,224.29 |
| Total non-current assets | 20,546,042,062.35 | 18,250,690,355.08 |
| Total assets | 185,984,511,884.61 | 165,432,981,684.75 |
| 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 | 569,729,467.22 | 732,432,611.26 |
| Accounts payable | 8,951,591,862.82 | 8,864,206,997.09 |
| Advances from customers | 18,100,649.63 | 17,522,814.61 |
| Contract liabilities | 8,157,503,632.65 | 6,864,383,635.25 |
| 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 | 3,648,149,395.63 | 3,872,122,436.43 |
| Taxes and surcharge payable | 4,504,909,475.97 | 6,268,458,145.77 |
| Other payables | 23,954,160,106.68 | 5,385,776,903.69 |
| Of which: Interest payable | ||
| Dividends payable | 18,127,109,383.35 | |
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 373,908,963.84 | 14,512,448.92 |
| Other current liabilities | 624,081,189.42 | 663,723,991.63 |
| Total current liabilities | 50,802,134,743.86 | 32,683,139,984.65 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Of which: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | 646,160,709.88 | 115,722,608.68 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 246,950,215.16 | 253,043,325.37 |
| Deferred income tax liabilities | 240,471,806.67 | 31,702,578.88 |
| Other non-current liabilities | ||
| Total non-current liabilities | 1,133,582,731.71 | 400,468,512.93 |
| Total liabilities | 51,935,717,475.57 | 33,083,608,497.58 |
| 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 | 33,588,553,502.81 |
| General reserve | ||
| Retained earnings | 90,335,152,592.07 | 89,405,432,446.55 |
| Total equity attributable to owners of the Company as the parent | 130,487,961,186.03 | 129,558,241,040.51 |
| Non-controlling interests | 3,560,833,223.01 | 2,791,132,146.66 |
| Total owners’ equity | 134,048,794,409.04 | 132,349,373,187.17 |
| Total liabilities and owners’ equity | 185,984,511,884.61 | 165,432,981,684.75 |
Legal representative: Zeng Congqin Chief Financial Officer: Zhang Xin Head of the accounting department: Liu Hongxu
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Monetary assets | 60,959,151,409.68 | 60,323,450,012.71 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | ||
| Receivables financing | ||
| Prepayments | 3,946,792.23 | 3,380,448.33 |
| Other receivables | 6,410,452,552.43 | 6,485,949,705.92 |
| Of which: Interest receivable | ||
| Dividends receivable | 650,667,449.43 | 930,755,375.66 |
| Inventories | ||
| Of which: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | ||
| Total current assets | 67,373,550,754.34 | 66,812,780,166.96 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 13,443,389,025.18 | 13,436,738,333.48 |
| Other equity investments | ||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
| Investment property | ||
| Fixed assets | 105,941,317.09 | 114,171,167.35 |
| Construction in progress | 112,398,471.31 | 112,398,471.31 |
| Productive living assets |
| Oil and gas assets | ||
| Right-of-use assets | 9,102,156.14 | 985,149.93 |
| Intangible assets | 37,459,792.91 | 39,378,847.31 |
| Of which: Data resources | ||
| Development costs | ||
| Of which: Data resources | ||
| Goodwill | ||
| Long-term prepaid expense | ||
| Deferred income tax assets | 14,681,556.80 | 11,183,406.83 |
| Other non-current assets | ||
| Total non-current assets | 13,724,172,319.43 | 13,716,055,376.21 |
| Total assets | 81,097,723,073.77 | 80,528,835,543.17 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 175,000.00 | 175,000.00 |
| Advances from customers | ||
| Contract liabilities | ||
| Employee benefits payable | 9,151,590.18 | 9,870,448.65 |
| Taxes and surcharge payable | 84,444,965.08 | 86,642,875.45 |
| Other payables | 18,281,781,510.70 | 159,525,988.83 |
| Of which: Interest payable | ||
| Dividends payable | 18,127,109,383.35 | |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 2,539,935.97 | 685,585.96 |
| Other current liabilities | ||
| Total current liabilities | 18,378,093,001.93 | 256,899,898.89 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Of which: Preference shares |
| Perpetual bonds | ||
| Lease liabilities | 6,796,944.74 | |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 7,750,000.00 | 7,750,000.00 |
| Deferred income tax liabilities | 2,275,539.04 | 246,287.48 |
| Other non-current liabilities | ||
| Total non-current liabilities | 16,822,483.78 | 7,996,287.48 |
| Total liabilities | 18,394,915,485.71 | 264,896,186.37 |
| 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 | 15,508,769,954.04 |
| Retained earnings | 40,629,782,542.87 | 58,190,914,311.61 |
| Total owners’ equity | 62,702,807,588.06 | 80,263,939,356.80 |
| Total liabilities and owners’ equity | 81,097,723,073.77 | 80,528,835,543.17 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I Total revenues | 50,648,026,578.65 | 45,506,384,818.37 |
| Of which: Operating revenue | 50,648,026,578.65 | 45,506,384,818.37 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| II Total costs and expenses | 24,499,814,494.48 | 22,026,681,871.19 |
| Of which: Cost of sales | 11,466,138,507.20 | 10,567,960,344.77 |
| Interest costs | ||
| Fee and commission costs | ||
| Surrenders |
| Net insurance claims paid | ||
| Net amount provided as reserve for insurance obligations | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharge | 7,169,866,343.52 | 6,495,771,025.33 |
| Selling expense | 5,366,342,173.42 | 4,320,445,619.61 |
| Administrative expense | 1,738,561,638.52 | 1,756,898,762.85 |
| Research and development expense | 159,760,941.28 | 135,677,515.04 |
| Finance costs | -1,400,855,109.46 | -1,250,071,396.41 |
| Of which: Interest expense | 17,030,819.31 | 6,811,996.58 |
| Interest income | 1,423,837,619.29 | 1,259,323,479.12 |
| Add: Other income | 220,749,387.64 | 218,711,927.56 |
| Investment income (“－” for loss) | 21,877,331.70 | 20,626,708.35 |
| Of which: Share of profit or loss of joint ventures and associates | 21,877,331.70 | 20,626,708.35 |
| 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 losses (“－” for loss) | -2,190,011.01 | -3,713,694.44 |
| Asset impairment losses (“－” for loss) | ||
| Gains on disposals of assets (“－” for losses) | -3,917,579.22 | 237,968.66 |
| III Operating profit (“－” for loss) | 26,384,731,213.28 | 23,715,565,857.31 |
| Add: Non-operating income | 12,505,112.08 | 11,950,306.57 |
| Less: Non-operating expense | 7,164,462.42 | 55,248,945.45 |
| IV Gross profit (“－” for gross loss) | 26,390,071,862.94 | 23,672,267,218.43 |
| Less: Income tax expense | 6,563,541,257.72 | 5,879,733,314.24 |
| V Net profit (“－” for net loss) | 19,826,530,605.22 | 17,792,533,904.19 |
| (I) By operating continuity | ||
| 1. Net profit from continuing operations (“－” for net loss) | 19,826,530,605.22 | 17,792,533,904.19 |
| 2. Net profit from discontinued operations (“－” for net loss) | ||
| (II) By ownership | ||
| 1. Net profit attributable to owners of the Company as the parent (“－” for net loss) | 19,056,829,528.87 | 17,036,708,791.18 |
| 2. Net profit attributable to non-controlling interests (“－” for net loss) | 769,701,076.35 | 755,825,113.01 |
| 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 | 19,826,530,605.22 | 17,792,533,904.19 |
| Total comprehensive income attributable to owners of the Company as the parent | 19,056,829,528.87 | 17,036,708,791.18 |
| Total comprehensive income attributable to non-controlling interests | 769,701,076.35 | 755,825,113.01 |
| VIII Earnings per share: | ||
| (I) Basic earnings per share | 4.910 | 4.389 |
| (II) Diluted earnings per share | 4.910 | 4.389 |
Where business combinations involving entities under common control occurred in the current period, thenet profit achieved by the acquirees before the combinations was RMB0.00, with the amount for the sameperiod of last year being RMB0.00.Legal representative: Zeng Congqin Chief Financial Officer: Zhang Xin Head of the accounting department: Liu Hongxu
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I Operating revenue | ||
| Less: Cost of sales | ||
| Taxes and surcharge | 328,041.00 | 331,940.81 |
| Selling expense | ||
| Administrative expense | 83,757,026.19 | 77,330,772.58 |
| Research and development expense | 37,880,928.14 | 38,580,473.31 |
| Finance costs | -848,544,763.65 | -733,373,985.00 |
| Of which: Interest expense | 349,686.50 | 16,584.06 |
| Interest income | 848,904,968.99 | 733,404,479.69 |
| Add: Other income | 2,346,572.38 | 3,212,099.46 |
| Investment income (“－” for loss) | 20,603,331.70 | 22,559,787.80 |
| Of which: Share of profit or loss of joint ventures and associates | 20,603,331.70 | 17,969,787.80 |
| 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 losses (“－” for loss) | -5,811.93 | -1,518,840.36 |
| Asset impairment losses (“－” for loss)） | ||
| Gains on disposals of assets (“－” for loss) | -92,629.13 | |
| II Operating profit (“－” for loss) | 749,522,860.47 | 641,291,216.07 |
| Add: Non-operating income | 401,401.08 | 33,279.40 |
| Less: Non-operating expense | 900,000.00 | 4,377,295.50 |
| III Gross profit (“－” for gross loss) | 749,024,261.55 | 636,947,199.97 |
| Less: Income tax expense | 183,046,646.94 | 141,550,011.95 |
| IV Net profit (“－” for net loss) | 565,977,614.61 | 495,397,188.02 |
| (I) Net profit from continuing operations (“－” for net loss) | 565,977,614.61 | 495,397,188.02 |
| (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 | 565,977,614.61 | 495,397,188.02 |
| VII Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I Cash flows from operating activities: | ||
| Proceeds from sale of goods and rendering of services | 49,648,363,358.43 | 43,051,685,416.56 |
| 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 | 44,310,389.47 | 24,684,000.00 |
| Cash generated from other operating activities | 814,125,658.15 | 754,037,354.75 |
| Subtotal of cash generated from operating activities | 50,506,799,406.05 | 43,830,406,771.31 |
| Payments for goods and services | 7,486,715,895.21 | 7,505,024,442.31 |
| 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 | 4,796,005,443.62 | 4,794,521,049.72 |
| Taxes and surcharge paid | 21,391,864,462.34 | 17,401,299,720.73 |
| Cash used in other operating activities | 3,404,284,949.25 | 2,799,742,672.25 |
| Subtotal of cash used in operating activities | 37,078,870,750.42 | 32,500,587,885.01 |
| Net cash generated from/used in operating activities | 13,427,928,655.63 | 11,329,818,886.30 |
| II Cash flows from investing activities: | ||
| Proceeds from the disposal of investments | ||
| Investment income | 13,952,640.00 | |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 3,976,302.92 | 594,829.45 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 17,928,942.92 | 594,829.45 |
| Payments for the acquisition and construction of fixed assets, | 1,087,312,766.70 | 1,345,043,512.81 |
| intangible assets and other long-term assets | ||
| Payments for the acquisition of investments | ||
| 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 | 1,087,312,766.70 | 1,345,043,512.81 |
| Net cash generated from/used in investing activities | -1,069,383,823.78 | -1,344,448,683.36 |
| III Cash flows from financing activities: | ||
| Capital contributions received | ||
| Of which: Capital contributions received by subsidiaries from non-controlling interests | ||
| Borrowings received | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayment of borrowings | ||
| Interest and dividends paid | 10,606,030,081.23 | |
| Of which: Dividends paid by subsidiaries to non-controlling interests | 17,601,392.99 | |
| Cash used in other financing activities | 157,849,148.32 | 201,882,821.01 |
| Subtotal of cash used in financing activities | 157,849,148.32 | 10,807,912,902.24 |
| Net cash generated from/used in financing activities | -157,849,148.32 | -10,807,912,902.24 |
| IV Effect of foreign exchange rate changes on cash and cash equivalents | ||
| V Net increase in cash and cash equivalents | 12,200,695,683.53 | -822,542,699.30 |
| Add: Cash and cash equivalents, beginning of the period | 113,095,684,224.30 | 90,584,643,897.66 |
| VI Cash and cash equivalents, end of the period | 125,296,379,907.83 | 89,762,101,198.36 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 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 | 933,235,725.86 | 1,797,517,178.90 |
| Subtotal of cash generated from operating activities | 933,235,725.86 | 1,797,517,178.90 |
| Payments for goods and services | ||
| Cash paid to and for employees | 88,701,721.91 | 116,579,383.93 |
| Taxes and surcharge paid | 187,456,637.30 | 351,172,696.63 |
| Cash used in other operating activities | 1,097,222,803.55 | 681,369,113.25 |
| Subtotal of cash used in operating activities | 1,373,381,162.76 | 1,149,121,193.81 |
| Net cash generated from/used in operating activities | -440,145,436.90 | 648,395,985.09 |
| II Cash flows from investing activities: | ||
| Proceeds from the disposal of investments |
| Investment income | 294,040,566.23 | 1,213,162,199.85 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 3,857,701.37 | 350,616.31 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 297,898,267.60 | 1,213,512,816.16 |
| Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 1,320,554.12 | 12,506,369.28 |
| Payments for the acquisition of investments | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 1,320,554.12 | 12,506,369.28 |
| Net cash generated from/used in investing activities | 296,577,713.48 | 1,201,006,446.88 |
| 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 | 10,588,428,688.24 | |
| Cash used in other financing activities | 447,300.00 | |
| Subtotal of cash used in financing activities | 10,588,875,988.24 | |
| Net cash generated from/used in financing activities | -10,588,875,988.24 | |
| IV Effect of foreign exchange rate changes on cash and cash equivalents | ||
| V Net increase in cash and cash equivalents | -143,567,723.42 | -8,739,473,556.27 |
| Add: Cash and cash equivalents, beginning of the period | 58,965,084,165.81 | 49,975,638,860.17 |
| VI Cash and cash equivalents, end of the period | 58,821,516,442.39 | 41,236,165,303.90 |
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024 Unit: RMB
| Item | H1 2024 | ||||||||||||||
| 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 | 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 | ||||||||
| Add: Adjustments for changes in accounting policies | |||||||||||||||
| 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 | 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 | ||||||||
| III Increase/ decrease in | 929,720,145.52 | 929,720,145.52 | 769,701,076.35 | 1,699,421,221.87 | |||||||||||
| the period (“-” for decrease) | |||||||||||||||
| (I) Total comprehensive income | 19,056,829,528.87 | 19,056,829,528.87 | 769,701,076.35 | 19,826,530,605.22 | |||||||||||
| (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 | -18,127,109,383.35 | -18,127,109,383.35 | -18,127,109,383.35 | ||||||||||||
| 1. Appropriated to surplus reserves | |||||||||||||||
| 2. Appropriated to general reserve |
| 3. Distributed to owners (or shareholders) | -18,127,109,383.35 | -18,127,109,383.35 | -18,127,109,383.35 | ||||||||||||
| 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 | 90,335,152,592.07 | 130,487,961,186.03 | 3,560,833,223.01 | 134,048,794,409.04 |
H1 2023 Unit: RMB
| Item | H1 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 | 283,842.40 | 2,554,581.61 | 2,838,424.01 | 2,838,424.01 | |||||||||||
| accounting policies | |||||||||||||||
| 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) | 2,356,467,350.21 | 2,356,467,350.21 | 751,415,113.01 | 3,107,882,463.22 | |||||||||||
| (I) Total comprehensive income | 17,036,708,791.18 | 17,036,708,791.18 | 755,825,113.01 | 17,792,533,904.19 | |||||||||||
| (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 | -14,680,241,440.97 | -14,680,241,440.97 | -4,410,000.00 | -14,684,651,440.97 | |||||||||||
| 1. Appropriated to surplus reserves | |||||||||||||||
| 2. Appropriated to general reserve | |||||||||||||||
| 3. Distributed to owners (or shareholders) | -14,680,241,440.97 | -14,680,241,440.97 | -4,410,000.00 | -14,684,651,440.97 | |||||||||||
| 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 | 81,387,627,103.86 | 116,384,364,562.39 | 3,410,545,940.93 | 119,794,910,503.32 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024 Unit: RMB
| Item | H1 2024 | |||||||||||
| 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 | 15,508,769,954.04 | 58,190,914,311.61 | 80,263,939,356.80 | |||||||
| Add: Adjustments for changes in accounting policies | ||||||||||||
| 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 | 15,508,769,954.04 | 58,190,914,311.61 | 80,263,939,356.80 | |||||||
| III Increase/ decrease in the period (“-” for decrease) | -17,561,131,768.74 | -17,561,131,768.74 | ||||||||||
| (I) Total comprehensive income | 565,977,614.61 | 565,977,614.61 | ||||||||||
| (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 | -18,127,109,383.35 | -18,127,109,383.35 | ||||||||||
| 1. Appropriated to surplus reserves | ||||||||||||
| 2. Distributed to owners (or shareholders) | -18,127,109,383.35 | -18,127,109,383.35 | ||||||||||
| 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 | 40,629,782,542.87 | 62,702,807,588.06 |
H1 2023 Unit: RMB
| Item | H1 2023 | |||||||||||
| 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 | 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) | -14,184,844,252.95 | -14,184,844,252.95 | ||||||||||
| (I) Total comprehensive income | 495,397,188.02 | 495,397,188.02 | ||||||||||
| (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 | -14,680,241,440.97 | -14,680,241,440.97 | ||||||||||
| 1. Appropriated to surplus reserves | ||||||||||||
| 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 | 13,295,618,638.02 | 38,767,949,655.49 | 58,627,823,384.66 |
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 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 remained at2,711.4048 million share.
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 Yibin
Development 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.
Sichuan Yibin Wuliangye Group Co., Ltd. has, during the period from 14 December 2023 to the close oftrading on 12 June 2024, cumulatively increased its shareholding in the Company by 3,406,668 shares (or 0.09%of the Company's current total share capital of 3,881,608,005 shares) through the trading system of the ShenzhenStock Exchange by way of centralised bidding transactions with an amount of RMB500.0016 million. Uponcompletion of the implementation of the shareholding increase plan, Yibin Development Holding Group Co., Ltd.still holds a 34.43% interest in the Company (i.e. 1,336,548,020 shares), being the largest shareholder of theCompany; and Sichuan Yibin Wuliangye Group Co., Ltd. holds a 20.49% interest in the Company (i.e.795,230,011 shares), being the second largest shareholder of the Company. Therefore, the controlling shareholderand the actual controller of the Company have remained unchanged.
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 27 August 2024.
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 EstimatesThe 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
The accounting period of the Company is 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 research and development projects | Exceeds 10% of the total budget for existing research and development projects, with the amount of externally purchased research and development projects exceeding RMB40 million. |
| Significant capitalised research and development projects | Exceeds 10% of the total budget for existing research and development projects, with the capitalisation amount 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 the cost of the new investment on the date of acquisition shall betaken as the initial cost of such investment; where the equity held in the acquiree prior to the date of acquisitioninvolves other comprehensive income, the other comprehensive income related to such investment shall betransferred to current investment income.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 investment income; where the equity held in theacquiree prior to the date of acquisition involves other comprehensive income, the other comprehensive incomerelated to such investment shall be transferred to current investment income 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 the
combination 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 fromthe 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 operations
Joint 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 and
construction 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 contractualright 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 basic
borrowing 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 incomeThe 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 lossThe 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 incomeThe 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 therights 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 and
financial 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 have
suffered 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 reservesOn 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 being 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 includedin 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 not
be 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 derecognition
When 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 investment income.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 theinvestment income and other comprehensive income respectively, and adjust the carrying value of the long-termequity investment. 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 investmentincome is recognized accordingly. Unrecorded internal transaction losses incurred between the Company and theinvested company shall be recognized in full if they fell under asset impairment losses.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 investment incomeand 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 of
the 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 equitymethod 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 therecognition conditions 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 orproduction 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 investment income from temporary investment. Interest of general borrowingsto be capitalized should be calculated by multiplying the weighted average of asset disbursements of the excess ofaccumulated asset disbursements over the special borrowings by the capitalization rate of used general 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 research and development expenditures and related accounting treatmentThe scope of research and development expenditures includes staff salaries for research and developmentpersonnel, direct input costs, depreciation and 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 bereliably 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 its
carrying 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 labour relation with the enterprise in exchange for the service provided bythe employee. Post-employment benefits are divided into two types: Defined contribution plans and defined
benefit plans.
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 ofthe 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 thelabour 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 labour 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 would
result 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 modelThe 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 modelGroup 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 subsidiesThe 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 subsidiesIncome-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 incomes
or 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 leases with 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
(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 Implemented since 2024
□ Applicable ? Not applicable
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 the first half of2024 was RMB36,539,560.00.According to the Circular on Improving the Comprehensive Resource Utilisation VAT Policy (Circular No.No. 40 of 2021 of the Ministry of Finance and the State Administration of Taxation), Sichuan Yibin WuliangyeEnvironmental Protection Industry Co., Ltd. enjoys the 70% drawback policy of value-added tax for providingcomprehensive utilisation of resources for wastewater treatment. The amount of value-added tax refunded in thefirst half of 2024 was RMB7,770,829.47.
(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 | 4,855.27 | 42,156.81 |
| Bank deposits | 86,642,061,525.06 | 74,892,248,621.63 |
| Other monetary assets | 324,432,721.19 | 264,472,639.86 |
| Deposits in Wuliangye Group Finance | 41,748,342,979.22 | 40,299,537,492.34 |
| Total | 128,714,842,080.74 | 115,456,300,910.64 |
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 | 3,650,281.25 | |
| Total | 3,650,281.25 |
(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 | ||||||||||
| Of which: | ||||||||||
| Notes receivable for which allowances for doubtful accounts are established on a grouping | 3,650,281.25 | 100.00% | 3,650,281.25 | |||||||
| basis | ||||||||||
| Of which: | ||||||||||
| Letters of credit | 3,650,281.25 | 100.00% | 3,650,281.25 | |||||||
| Total | 3,650,281.25 | 100.00% | 3,650,281.25 |
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 periodThe Company had no allowances for doubtful accounts established, recovered or reversed in the currentperiod.Significant recovered or reversed allowances for doubtful accounts in the current period:
□ Applicable ? Not applicable
(4) Notes receivable in pledge at the end of the current period
The Company had no notes receivable pledged by the Company as 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 date
The 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) | 85,589,786.23 | 42,890,430.03 |
| 1 to 2 years | 918,696.09 | 31,487.08 |
| 2 to 3 years | 7,721.68 | 278,631.80 |
| More than 3 years | 5,808,416.56 | 6,233,545.71 |
| 3 to 4 years | 278,697.80 | 66.00 |
| 4 to 5 years | 280,471.24 | 473,121.61 |
| More than 5 years | 5,249,247.52 | 5,760,358.10 |
| Total | 92,324,620.56 | 49,434,094.62 |
(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 | 3.77% | 3,477,979.92 | 100.00% | 3,477,979.92 | 7.04% | 3,477,979.92 | 100.00% | ||
| Of which: | ||||||||||
| External customers | 3,477,979.92 | 3.77% | 3,477,979.92 | 100.00% | 3,477,979.92 | 7.04% | 3,477,979.92 | 100.00% | ||
| Accounts receivable for which allowances for doubtful accounts are established on a grouping basis | 88,846,640.64 | 96.23% | 4,727,951.14 | 5.32% | 84,118,689.50 | 45,956,114.70 | 92.96% | 3,308,653.22 | 7.20% | 42,647,461.48 |
| Of which: | ||||||||||
| External customers | 63,695,534.79 | 68.99% | 4,727,951.14 | 7.42% | 58,967,583.65 | 27,090,348.48 | 54.80% | 3,308,653.22 | 12.21% | 23,781,695.26 |
| Related parties | 25,151,105.85 | 27.24% | 25,151,105.85 | 18,865,766.22 | 38.16% | 18,865,766.22 | ||||
| Total | 92,324,620.56 | 100.00% | 8,205,931.06 | 8.89% | 84,118,689.50 | 49,434,094.62 | 100.00% | 6,786,633.14 | 13.73% | 42,647,461.48 |
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 gross amount | Reason for allowance | |
| 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 |
| Total | 3,477,979.92 | 3,477,979.92 | 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 | 63,695,534.79 | 4,727,951.14 | 7.42% |
| Accounts receivable for which allowances for doubtful accounts are established based on the related party group | 25,151,105.85 | ||
| Total | 88,846,640.64 | 4,727,951.14 | |
Allowances for doubtful accounts established using the general model of expected credit loss:
□ Applicable ? Not applicable
(3) 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 | Written off | Others | |||
| Accounts receivable for which allowances for doubtful accounts are established on an individual basis | 3,477,979.92 | 3,477,979.92 | ||||
| Accounts receivable for which allowances for doubtful accounts are established based on the external customer group | 3,308,653.22 | 1,477,823.13 | 58,525.21 | 4,727,951.14 | ||
| Total | 6,786,633.14 | 1,477,823.13 | 58,525.21 | 8,205,931.06 | ||
Significant recovered or reversed allowances for doubtful accounts in the current period: The Companyhad no significant recovered or reversed allowances for doubtful accounts in the current period.
(4) Accounts receivable actually written off in the current period
Unit: RMB
| Item | Amount written off |
| Accounts receivable actually written off | 58,525.21 |
Significant accounts receivable written off: The Company had no significant accounts receivable writtenoff in the current period.
(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 Kuanzhai Printing Co., Ltd. | 39,761,659.90 | 39,761,659.90 | 43.07% | 1,988,083.00 | |
| Sichuan Putian Packaging Co., Ltd. | 11,523,877.83 | 11,523,877.83 | 12.48% | ||
| Chengdu Huayu Glass Manufacturing Co., Ltd. | 6,482,321.07 | 6,482,321.07 | 7.02% | ||
| Sichuan Tuopai Trading Co., Ltd. | 4,174,392.78 | 4,174,392.78 | 4.52% | 208,719.64 | |
| Chengdu PUTH Medical Technology Co., Ltd. | 2,537,100.00 | 2,537,100.00 | 2.75% | ||
| Total | 64,479,351.58 | 64,479,351.58 | 69.84% | 2,196,802.64 |
4. Receivables financing
(1) Receivables financing presented by category
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bills | 19,576,430,505.90 | 14,086,450,565.79 |
| Total | 19,576,430,505.90 | 14,086,450,565.79 |
(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 | ||||||||||
| Of which: | ||||||||||
| Receivables financing for which allowances for doubtful accounts are established on a grouping basis | 19,576,430,505.90 | 100.00% | 19,576,430,505.90 | 14,086,450,565.79 | 100.00% | 14,086,450,565.79 | ||||
| Of which: | ||||||||||
| Bank acceptance bills | 19,576,430,505.90 | 100.00% | 19,576,430,505.90 | 14,086,450,565.79 | 100.00% | 14,086,450,565.79 | ||||
| Total | 19,576,430,505.90 | 100.00% | 19,576,430,505.90 | 14,086,450,565.79 | 100.00% | 14,086,450,565.79 | ||||
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 | 19,576,430,505.90 | ||
| Total | 19,576,430,505.90 | ||
(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 as at the end of the current period.
(5) Receivables financing endorsed or discounted by the Company at the end of the period and notexpired yet 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 | 1,987,564,924.54 | |
| Total | 1,987,564,924.54 |
(6) Receivables financing actually written off at the end of the period
The Company had no receivables financing actually written off as at the end of the period.
5. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 51,547,943.32 | 39,624,933.74 |
| Total | 51,547,943.32 | 39,624,933.74 |
(1) Other receivables
1) Other receivables classified by nature
Unit: RMB
| Nature | Closing gross amount | Opening gross amount |
| Cash float | 12,240,682.52 | 2,277,566.82 |
| Current account | 1,567,659.40 | 1,510,890.62 |
| Security deposits | 37,256,195.33 | 38,602,390.27 |
| Other advance money for others or temporary payment | 11,078,629.36 | 7,119,780.00 |
| Total | 62,143,166.61 | 49,510,627.71 |
2) Other receivables presented by aging
Unit: RMB
| Aging | Closing gross amount | Opening gross amount |
| Within 1 year (inclusive) | 41,652,300.09 | 31,302,289.55 |
| 1 to 2 years | 7,338,841.03 | 4,460,593.08 |
| 2 to 3 years | 1,250,482.00 | 1,394,469.00 |
| More than 3 years | 11,901,543.49 | 12,353,276.08 |
| 3 to 4 years | 1,054,607.12 | 1,069,474.75 |
| 4 to 5 years | 1,089,285.45 | 2,768,887.33 |
| More than 5 years | 9,757,650.92 | 8,514,914.00 |
| Total | 62,143,166.61 | 49,510,627.71 |
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: | ||||||||||
| 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 | 62,141,327.76 | 100.00% | 10,593,384.44 | 17.05% | 51,547,943.32 | 49,508,788.86 | 100.00% | 9,883,855.12 | 19.96% | 39,624,933.74 |
| Of which: | ||||||||||
| External | 61,150,212.91 | 98.40% | 10,593,384.44 | 17.32% | 50,556,828.47 | 48,467,068.38 | 97.89% | 9,883,855.12 | 20.39% | 38,583,213.26 |
| customers | ||||||||||
| Related parties | 991,114.85 | 1.59% | 991,114.85 | 1,041,720.48 | 2.10% | 1,041,720.48 | ||||
| Total | 62,143,166.61 | 100.00% | 10,595,223.29 | 17.05% | 51,547,943.32 | 49,510,627.71 | 100.00% | 9,885,693.97 | 19.97% | 39,624,933.74 |
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 | 61,150,212.91 | 10,593,384.44 | 17.32% |
| Other receivables for which allowances for doubtful accounts are established based on the related party group | 991,114.85 | ||
| Total | 62,141,327.76 | 10,593,384.44 | |
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 2024 | 9,883,855.12 | 1,838.85 | 9,885,693.97 | |
| Balance as at 1 January 2024 was in the current period | ||||
| - Transferred to Stage 2 | ||||
| - Transferred to Stage 3 | -2,658.56 | 2,658.56 | 0.00 | |
| - Transferred back to Stage 2 | ||||
| - Transferred back to Stage 1 | ||||
| Established in the current period | 712,187.88 | 712,187.88 | ||
| Reversed in the current period | ||||
| Charged off in the current period | ||||
| Written off in the current period | 2,658.56 | 2,658.56 | ||
| Other changes | ||||
| Balance as at 30 June 2024 | 10,593,384.44 | 1,838.85 | 10,595,223.29 |
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 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 | 9,883,855.12 | 712,187.88 | 2,658.56 | 10,593,384.44 | ||
| Total | 9,885,693.97 | 712,187.88 | 2,658.56 | 10,595,223.29 | ||
5) Other receivables actually written off in the current period
Unit: RMB
| Item | Amount written off |
| Other receivables actually written off | 2,658.56 |
Significant other receivables written off:
The Company had no significant other receivables 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 of total other receivables | Closing balance of allowances for doubtful accounts |
| Jiang'an County Finance Bureau’s escrow funds fiscal account | Security deposit | 10,000,000.00 | Within 1year | 16.09% | 300,000.00 |
| Yibin Zhongqi Natural Gas Co., Ltd. | Security deposit | 8,010,000.00 | Within 1year | 12.89% | 240,300.00 |
| Yibin Cuiping District Housing and Urban-Rural Development Bureau | Security deposit | 5,000,000.00 | Over 5 years | 8.05% | 4,000,000.00 |
| China Mobile Communications Group Sichuan Co., Ltd. Yibin Branch | Other suspense payments | 3,239,457.40 | Within 1year; 1-2 years | 5.21% | 119,652.15 |
| Sichuan Chengdu Railway International Business Travel Group Co., Ltd. | Security deposit | 2,054,331.00 | 1-2 years | 3.31% | 205,433.10 |
| Total | 28,303,788.40 | 45.55% | 4,865,385.25 |
6. Prepayments
(1) Prepayments presented by aging
Unit: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | As % of total | Amount | As % of total | |
| prepayments | prepayments | |||
| Within 1 year | 137,652,593.47 | 85.57% | 143,838,589.00 | 84.90% |
| 1 to 2 years | 5,848,367.08 | 3.64% | 6,079,402.92 | 3.59% |
| 2 to 3 years | 3,251,500.91 | 2.02% | 11,610,807.73 | 6.85% |
| More than 3 years | 14,108,953.12 | 8.77% | 7,896,945.50 | 4.66% |
| Total | 160,861,414.58 | 169,425,745.15 |
(2) Top five entities with respect to prepayments
Unit: RMB
| Entity | Closing balance | As % of the closing balance of total prepayments |
Yibin PetroChina Kunlun Guoding Gas Co., Ltd.
| Yibin PetroChina Kunlun Guoding Gas Co., Ltd. | 32,910,000.00 | 20.46% |
| PetroChina Company Limited Southwest Chemical Sales Branch | 22,182,897.59 | 13.79% |
| Hand Enterprise Solutions Co., Ltd. | 10,948,113.21 | 6.81% |
| Xiamen Yijianxing Industrial Co., Ltd. | 8,221,213.22 | 5.11% |
| Zhejiang Pengyuan Supply Chain Management Co., Ltd. | 6,255,070.00 | 3.89% |
| Total | 80,517,294.02 | 50.05% |
7. Inventory
Indicate whether the Company is subject to the information disclosure requirements for the real estate sector.No.
(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 | 426,733,176.19 | 5,826,978.57 | 420,906,197.62 | 535,367,248.85 | 5,839,586.09 | 529,527,662.76 |
| Goods in process | 1,223,454,330.06 | 1,223,454,330.06 | 1,263,271,738.43 | 1,263,271,738.43 | ||
| Inventory of goods | 2,963,938,353.12 | 29,415,124.10 | 2,934,523,229.02 | 3,786,765,952.30 | 30,118,427.27 | 3,756,647,525.03 |
| Turnover materials | 2,006,080.96 | 436,409.41 | 1,569,671.55 | 2,771,487.81 | 436,409.41 | 2,335,078.40 |
| Goods issued | 25,817,968.86 | 917,805.65 | 24,900,163.21 | 231,804,401.04 | 917,805.65 | 230,886,595.39 |
| Homemade semi-finished products | 12,159,061,969.59 | 150,386.01 | 12,158,911,583.58 | 11,540,815,410.35 | 150,386.01 | 11,540,665,024.34 |
| Packing materials | 15,916,796.10 | 15,916,796.10 | 15,916,796.10 | 15,916,796.10 | ||
| Manufacturing consignment materials | 29,198,763.87 | 29,198,763.87 | 29,963,859.21 | 29,963,859.21 | ||
| Goods in transit | 53,554,968.06 | 53,554,968.06 | 34,544,229.31 | 34,544,229.31 | ||
| Total | 16,899,682,406.81 | 52,663,499.84 | 16,847,018,906.97 | 17,441,221,123.40 | 53,379,410.53 | 17,387,841,712.87 |
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in Guidelines No. 3 of the Shenzhen Stock Exchangefor 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 | 2,485,950,572.78 | 2,485,950,572.78 | 2,960,244,729.82 | 2,960,244,729.82 | ||
| Plastic products | 327,934,312.34 | 1,883,172.95 | 326,051,139.39 | 597,271,784.75 | 1,883,172.95 | 595,388,611.80 |
| Printing | 26,381,681.58 | 15,689,954.97 | 10,691,726.61 | 45,863,262.76 | 15,689,954.97 | 30,173,307.79 |
| Glass bottles | 94,916,019.87 | 7,575,592.58 | 87,340,427.29 | 142,839,505.25 | 8,278,895.75 | 134,560,609.50 |
| Others | 28,755,766.55 | 4,266,403.60 | 24,489,362.95 | 40,546,669.72 | 4,266,403.60 | 36,280,266.12 |
| Total | 2,963,938,353.12 | 29,415,124.10 | 2,934,523,229.02 | 3,786,765,952.30 | 30,118,427.27 | 3,756,647,525.03 |
(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 | 5,839,586.09 | 12,607.52 | 5,826,978.57 | |||
| Inventory of goods | 30,118,427.27 | 703,303.17 | 29,415,124.10 | |||
| Turnover materials | 436,409.41 | 436,409.41 | ||||
| Packing materials | 15,916,796.10 | 15,916,796.10 | ||||
| Goods issued | 917,805.65 | 917,805.65 | ||||
| Semi-finished products | 150,386.01 | 150,386.01 | ||||
| Total | 53,379,410.53 | 715,910.69 | 52,663,499.84 | |||
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costsNone
(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) | |||||||
| Increase in investment | Decrease in investment | Investment income 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. | 27,361,937.34 | -5,519,829.33 | 21,842,108.01 | ||||||||
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,958,180,619.90 | 26,114,874.16 | 13,952,640.00 | 1,970,342,854.06 | |||||||
| Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | 10,751,658.65 | 8,286.87 | 10,759,945.52 | ||||||||
| Yibin Jiamei Intelligent Packaging Co., Ltd. | 24,072,024.80 | 1,274,000.00 | 25,346,024.80 | ||||||||
| Sub-total | 2,020,366,240.69 | 21,877,331.70 | 13,952,640.00 | 2,028,290,932.39 | |||||||
| Total | 2,020,366,240.69 | 21,877,331.70 | 13,952,640.00 | 2,028,290,932.39 | |||||||
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, taking
up 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 | 5,140,968,426.24 | 5,188,163,140.11 |
| Disposal of fixed assets | 3,299,507.08 | 1,754,162.06 |
| Total | 5,144,267,933.32 | 5,189,917,302.17 |
(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 | 8,614,499,374.03 | 3,164,665,585.49 | 1,851,502,601.18 | 158,020,886.43 | 713,178,799.71 | 14,501,867,246.84 |
| 2. Increases in the current period | 4,763,971.48 | 33,943,386.65 | 118,526,631.93 | 4,994,179.33 | 33,681,155.52 | 195,909,324.91 |
| (1) Acquisition | 1,322,871.30 | 33,818,444.41 | 93,128,293.87 | 4,994,179.33 | 33,590,424.00 | 166,854,212.91 |
| (2) Transferred from construction in progress | 3,441,100.18 | 124,942.24 | 25,398,338.06 | 90,731.52 | 29,055,112.00 | |
| (3) Increase from business combination | ||||||
| 3. Decreases in the current period | 3,623,619.75 | 70,126,166.70 | 35,760,694.41 | 4,270,578.68 | 4,796,286.53 | 118,577,346.07 |
| (1) Disposed or scrapped | 3,623,619.75 | 70,126,166.70 | 35,760,694.41 | 4,270,578.68 | 4,796,286.53 | 118,577,346.07 |
| 4. Closing balance | 8,615,639,725.76 | 3,128,482,805.44 | 1,934,268,538.70 | 158,744,487.08 | 742,063,668.70 | 14,579,199,225.68 |
| II Accumulated depreciation | ||||||
| 1. Opening 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 |
| 2. Increases in the current period | 128,128,406.57 | 28,553,328.42 | 48,221,148.34 | 8,743,141.82 | 16,036,084.48 | 229,682,109.63 |
| (1) Provisions | 128,128,406.57 | 28,553,328.42 | 48,221,148.34 | 8,743,141.82 | 16,036,084.48 | 229,682,109.63 |
| 3. Decreases in the current period | 2,401,401.70 | 62,170,896.41 | 29,425,346.62 | 4,078,744.09 | 4,311,580.05 | 102,387,968.87 |
| (1) Disposed or scrapped | 2,401,401.70 | 62,170,896.41 | 29,425,346.62 | 4,078,744.09 | 4,311,580.05 | 102,387,968.87 |
| 4. Closing balance | 4,664,798,970.92 | 2,791,377,426.73 | 1,270,803,654.72 | 101,951,559.43 | 585,317,594.15 | 9,414,249,205.95 |
| 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 | 2,767,448.05 | 2,767,448.05 | ||||
| (1) Disposed or scrapped | 2,767,448.05 | 2,767,448.05 | ||||
| 4. Closing balance | 15,412,584.75 | 7,185,854.83 | 911,614.26 | 471,539.65 | 23,981,593.49 | |
| IV Carrying amount | ||||||
| 1. Closing carrying amount | 3,935,428,170.09 | 329,919,523.88 | 662,553,269.72 | 56,792,927.65 | 156,274,534.90 | 5,140,968,426.24 |
| 2. Opening 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) 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 | 96,823,526.37 |
| Equipment | 5,374,272.51 |
| Total | 102,197,798.88 |
(4) Fixed assets without certificate of title
Unit: RMB
| Item | Carrying amount | Reason for not obtaining certificate of title |
| Buildings and constructions | 780,425,693.07 | 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 Province2016, the property ownership certificate and the land use certificate are integrated into the real estate ownershipcertificate. The Company 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 as at the end of the current period.
(6) Disposal of fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Equipment | 3,299,507.08 | 1,754,162.06 |
| Total | 3,299,507.08 | 1,754,162.06 |
11. Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 6,806,944,298.81 | 5,620,810,349.02 |
| Engineering materials | 2,546,073.18 | 2,546,073.18 |
| Total | 6,809,490,371.99 | 5,623,356,422.20 |
(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 | 6,809,344,304.36 | 2,400,005.55 | 6,806,944,298.81 | 5,623,210,354.57 | 2,400,005.55 | 5,620,810,349.02 |
| Total | 6,809,344,304.36 | 2,400,005.55 | 6,806,944,298.81 | 5,623,210,354.57 | 2,400,005.55 | 5,620,810,349.02 |
(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 (note 1) | 8,596,655,000.00 | 1,340,216,266.83 | 93,227,366.17 | 1,433,443,633.00 | 16.67% | 40.00% | Owned and raised funds | |||||
| Baijiu Cellar Renovation Project | 1,726,166,000.00 | 917,726,424.83 | 42,505,440.07 | 960,231,864.90 | 55.63% | 98.00% | Owned funds, subsidies and raised funds | |||||
| Qu-making Workshop Expansion Project | 2,358,117,500.00 | 495,755,748.44 | 158,137,469.03 | 653,893,217.47 | 27.73% | 75.00% | Owned funds | |||||
| 100,000-ton Ecological Distillery Project (Phase I) | 1,407,954,000.00 | 324,339,479.36 | 159,816,635.46 | 484,156,114.82 | 34.39% | 85.00% | Owned funds | |||||
| 100,000-ton Ecological Distillery Project (Phase II) | 4,861,043,000.00 | 305,210,714.63 | 212,384,527.13 | 376,139.76 | 517,219,102.00 | 10.65% | 30.00% | Owned funds | ||||
| Wuliangye Gateway Area Project | 5,027,737,600.00 | 43,780,484.44 | 57,524,315.57 | 101,304,800.01 | 2.01% | 5.00% | Owned funds | |||||
| Wuliangye 501 Ancient Fermentation Pits-Chinese Baijiu Cultural Sanctuary Project | 1,613,991,000.00 | 3,076,226.43 | 108,561,272.51 | 111,637,498.94 | 6.92% | 9.00% | Owned funds |
| New centralised wastewater treatment plant | 1,200,000,000.00 | 13,958,788.95 | 120,068,678.29 | 134,027,467.24 | 11.17% | 24.98% | Owned funds | |||||
| Total | 26,791,664,100.00 | 3,444,064,133.91 | 952,225,704.23 | 376,139.76 | 4,395,913,698.38 |
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 allowances established for construction in progress for the current periodThere were no additional impairments of construction in progress as at the end of the current period.
(4) Impairment tests of construction in progress
□ Applicable ? Not applicable
(5) 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 | Land use right | Total |
| I Gross amount | |||||
| 1. Opening balance | 263,446,011.50 | 366,174.21 | 1,407,132.27 | 281,179,086.24 | 546,398,404.22 |
| 2. Increases in the current period | 219,153,644.22 | 2,149,156.25 | 847,706,504.22 | 1,069,009,304.69 | |
| (1) Operating leases | 219,153,644.22 | 2,149,156.25 | 847,706,504.22 | 1,069,009,304.69 | |
| 3. Decreases in the current period | 32,423,382.52 | 32,423,382.52 | |||
| (1) Expiry or termination of leases | 32,423,382.52 | 32,423,382.52 | |||
| 4. Closing balance | 450,176,273.20 | 2,515,330.46 | 1,407,132.27 | 1,128,885,590.46 | 1,582,984,326.39 |
| II Accumulated depreciation | |||||
| 1. Opening balance | 137,113,083.18 | 325,488.19 | 970,431.12 | 281,179,086.24 | 419,588,088.73 |
| 2. Increases in the current period | 72,900,828.18 | 339,179.92 | 62,385.90 | 141,284,417.40 | 214,586,811.40 |
| (1) Provisions | 72,900,828.18 | 339,179.92 | 62,385.90 | 141,284,417.40 | 214,586,811.40 |
| 3. Decreases in the current period | 31,238,044.52 | 31,238,044.52 | |||
| (1) Disposal | |||||
| (2) Expiry or termination of leases | 31,238,044.52 | 31,238,044.52 | |||
| 4. Closing balance | 178,775,866.84 | 664,668.11 | 1,032,817.02 | 422,463,503.64 | 602,936,855.61 |
| 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 | 271,400,406.36 | 1,850,662.35 | 374,315.25 | 706,422,086.82 | 980,047,470.78 |
| 2. Opening carrying amount | 126,332,928.32 | 40,686.02 | 436,701.15 | 126,810,315.49 |
(2) Impairment tests of right-of-use assets
There were no impairments of right-of-use assets as 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 | 2,026,041,189.87 | 397,882,359.20 | 10,391,942.73 | 8,066,037.47 | 2,442,381,529.27 | ||
| 2. Increases in the current period | 614,250,575.20 | 49,385,582.03 | 663,636,157.23 | ||||
| (1) Acquisition | 614,250,575.20 | 49,385,582.03 | 663,636,157.23 | ||||
| (2) Internal research and development | |||||||
| (3) Increase from business combination | |||||||
| 3. Decreases in the current period | 4,474,612.57 | 4,474,612.57 | |||||
| (1) Disposal | 4,474,612.57 | 4,474,612.57 | |||||
| 4. Closing balance | 2,640,291,765.07 | 442,793,328.66 | 10,391,942.73 | 8,066,037.47 | 3,101,543,073.93 | ||
| II Accumulated amortization | |||||||
| 1. Opening balance | 179,504,424.15 | 189,470,419.56 | 10,352,084.37 | 6,183,962.16 | 385,510,890.24 |
| 2. Increases in the current period | 36,687,330.33 | 36,851,224.79 | 3,679.26 | 806,603.76 | 74,348,838.14 | ||
| (1) Provisions | 36,687,330.33 | 36,851,224.79 | 3,679.26 | 806,603.76 | 74,348,838.14 | ||
| 3. Decreases in the current period | 4,474,612.57 | 4,474,612.57 | |||||
| (1) Disposal | 4,474,612.57 | 4,474,612.57 | |||||
| 4. Closing balance | 216,191,754.48 | 221,847,031.78 | 10,355,763.63 | 6,990,565.92 | 455,385,115.81 | ||
| 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 | 2,424,100,010.59 | 220,946,296.88 | 36,179.10 | 1,075,471.55 | 2,646,157,958.12 | ||
| 2. Opening carrying amount | 1,846,536,765.72 | 208,411,939.64 | 39,858.36 | 1,882,075.31 | 2,056,870,639.03 |
Intangible assets created by internal research and development of the Company accounted for 0.00% of itstotal intangible assets as at the end of the 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 | 1,258,876,888.48 | Certification of property has not yet started for the construction planning is still being optimized. |
(3) Impairment tests of intangible assets
□ Applicable ? Not applicable
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 |
| Moulds | 136,844,410.41 | 21,085,088.53 | 31,666,256.69 | 126,263,242.25 | |
| Overhaul expenses of kilns | 19,961,882.39 | 346,541.39 | 4,552,266.69 | 15,756,157.09 | |
| Others | 6,313,731.06 | 2,883,736.64 | 2,021,927.58 | 7,175,540.12 | |
| Total | 163,120,023.86 | 24,315,366.56 | 38,240,450.96 | 149,194,939.46 |
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 | 97,125,009.20 | 19,159,900.44 | 97,497,278.56 | 19,252,967.78 |
| Unrealized profit of internal transactions | 1,052,883,699.72 | 263,220,924.93 | 1,188,281,924.48 | 297,070,481.12 |
| Employee benefits payable | 3,492,489,038.76 | 873,122,259.69 | 3,490,817,759.43 | 872,704,439.86 |
| Lease liabilities (inclusive of the current portion) | 1,020,069,673.72 | 251,485,867.60 | 130,235,057.60 | 32,558,764.42 |
| Accrued expenses, etc. | 4,346,812,287.04 | 1,086,703,071.76 | 4,084,095,658.56 | 1,021,023,914.64 |
| Total | 10,009,379,708.44 | 2,493,692,024.42 | 8,990,927,678.63 | 2,242,610,567.82 |
(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 | 980,047,470.78 | 240,471,806.67 | 126,810,315.49 | 31,702,578.88 |
| Total | 980,047,470.78 | 240,471,806.67 | 126,810,315.49 | 31,702,578.88 |
(3) Details about deferred income tax assets which have not been recognized
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary differences | 1,227,844.03 | 2,210,106.17 |
| Deductible losses | 281,021,754.69 | 238,826,934.43 |
| Total | 282,249,598.72 | 241,037,040.60 |
(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 |
| 2024 | 33,348,604.27 | 37,175,954.09 | |
| 2025 | 26,085,821.45 | 26,822,159.35 | |
| 2026 | 0.00 | 0.00 | |
| 2027 | 30,804,853.32 | 31,108,726.70 | |
| 2028 | 143,720,094.29 | 143,720,094.29 | |
| 2029 | 47,062,381.36 | ||
| Total | 281,021,754.69 | 238,826,934.43 |
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 | 173,185,173.27 | 173,185,173.27 | 197,884,442.32 | 197,884,442.32 | ||
| Prepayments for land bids | 47,308,599.07 | 47,308,599.07 | 617,111,764.28 | 617,111,764.28 | ||
| Prepayments for equipment | 71,585,040.00 | 71,585,040.00 | 9,821,017.69 | 9,821,017.69 | ||
| Total | 292,078,812.34 | 292,078,812.34 | 824,817,224.29 | 824,817,224.29 | ||
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 | 234,648,885.56 | 234,648,885.56 | 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 | 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 Business Department of Essence Securities |
| Total | 234,648,885.56 | 234,648,885.56 | 200,977,259.48 | 200,977,259.48 | ||||
19. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Bank acceptance notes | 569,729,467.22 | 732,432,611.26 |
| Total | 569,729,467.22 | 732,432,611.26 |
There were no notes payable which became mature but were unpaid as at the end of the current period.
20. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Accounts payable | 8,951,591,862.82 | 8,864,206,997.09 |
| Total | 8,951,591,862.82 | 8,864,206,997.09 |
(2) Significant accounts payable that are over one year or overdue
There were no significant accounts payable that were over 1 year or overdue as at the end of the currentperiod.
21. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends payable | 18,127,109,383.35 | |
| Other payables | 5,827,050,723.33 | 5,385,776,903.69 |
| Total | 23,954,160,106.68 | 5,385,776,903.69 |
(1) Dividends payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends payable to ordinary shareholders | 18,127,109,383.35 | |
| Total | 18,127,109,383.35 |
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Image publicity expense and sales promotional expense | 3,988,265,969.58 | 3,641,584,720.31 |
| Security deposits | 1,027,541,795.46 | 961,975,482.82 |
| Frozen funds | 271,011,242.15 | 272,831,242.15 |
| Collecting payment on behalf of others | 182,101,820.43 | 116,936,716.76 |
| Claims from safeguarding rights | 26,908,452.67 | 32,741,432.38 |
| Others | 331,221,443.04 | 359,707,309.27 |
| Total | 5,827,050,723.33 | 5,385,776,903.69 |
2) Significant other payables that are over one year or overdue
Unit: RMB
| Item | Closing balance | Reason for unsettlement or carryforward |
| Frozen funds | 262,797,339.21 | |
| Total | 262,797,339.21 |
22. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers | 18,100,649.63 | 17,522,814.61 |
| Total | 18,100,649.63 | 17,522,814.61 |
(2) Significant advances from customers that are over 1 year or overdue
There were no significant advances from customers that were over 1 year or overdue in the currentperiod.
23. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers | 8,157,503,632.65 | 6,864,383,635.25 |
| Total | 8,157,503,632.65 | 6,864,383,635.25 |
Significant contract liabilities that are over 1 year: There were no significant contract liabilities that wereover 1 year as at the end of the current period.The Company is subject to the disclosure requirements for the food and wine & liquor production industryin Guidelines 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 | 7,984,591,321.20 |
| 1 to 2 years | 28,369,223.49 |
| 2 to 3 years | 27,764,821.41 |
| More than 3 years | 116,778,266.55 |
| Total | 8,157,503,632.65 |
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 | 3,872,108,376.77 | 4,019,496,112.28 | 4,243,469,153.08 | 3,648,135,335.97 |
| II Post-employment benefits - defined contribution plans | 14,059.66 | 567,078,852.79 | 567,078,852.79 | 14,059.66 |
| Total | 3,872,122,436.43 | 4,586,574,965.07 | 4,810,548,005.87 | 3,648,149,395.63 |
(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 | 3,810,778,669.49 | 3,418,286,296.10 | 3,603,873,179.09 | 3,625,191,786.50 |
| 2. Employee benefits | 59,940,612.71 | 59,940,612.71 | ||
| 3. Social insurance charges | 154,678.65 | 184,611,321.60 | 184,611,321.60 | 154,678.65 |
| Including: Medical insurance premium | 154,486.34 | 172,542,133.11 | 172,542,133.11 | 154,486.34 |
| Industrial injury insurance premium | 107.45 | 11,839,439.03 | 11,839,439.03 | 107.45 |
| Birth insurance premium | 84.86 | 229,749.46 | 229,749.46 | 84.86 |
| 4. Housing provident fund | 36,668,368.00 | 281,459,796.07 | 318,128,164.07 | |
| 5. Labour union expenditure and personnel educational fund | 24,506,660.63 | 75,198,085.80 | 76,915,875.61 | 22,788,870.82 |
| Total | 3,872,108,376.77 | 4,019,496,112.28 | 4,243,469,153.08 | 3,648,135,335.97 |
(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 | 14,059.66 | 375,472,359.13 | 375,472,359.13 | 14,059.66 |
| 2. Unemployment insurance premium | 14,112,505.35 | 14,112,505.35 | ||
| 3. Corporate pension contribution | 177,493,988.31 | 177,493,988.31 | ||
| Total | 14,059.66 | 567,078,852.79 | 567,078,852.79 | 14,059.66 |
25. Taxes and surcharge payable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 1,317,938,207.67 | 1,287,318,757.45 |
| Consumption tax | 1,144,873,056.77 | 1,576,918,931.41 |
| Corporate income tax | 1,672,676,981.15 | 2,936,171,629.30 |
| Individual income tax | 20,856,744.85 | 57,956,239.44 |
| Urban maintenance and construction tax | 176,760,344.31 | 207,087,550.24 |
| Education surcharge | 76,064,249.89 | 89,319,297.77 |
| Local education surcharge | 50,714,678.73 | 59,551,377.32 |
| Deed tax | 37,629,000.00 | 44,169,896.88 |
| Stamp duty | 6,318,725.81 | 8,857,961.71 |
| Land use tax | 669,153.14 | 669,153.14 |
| Property tax | 408,071.37 | 425,171.77 |
| Environmental protection tax | 262.28 | 12,179.34 |
| Total | 4,504,909,475.97 | 6,268,458,145.77 |
26. Current portion of non-current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Current portion of lease liabilities | 373,908,963.84 | 14,512,448.92 |
| Total | 373,908,963.84 | 14,512,448.92 |
27. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Output tax to be transferred | 624,081,189.42 | 663,723,991.63 |
| Total | 624,081,189.42 | 663,723,991.63 |
28. Lease liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Lease liabilities | 646,160,709.88 | 115,722,608.68 |
| Total | 646,160,709.88 | 115,722,608.68 |
29. Deferred income
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause |
| Government grants | 253,043,325.37 | 239,700.00 | 6,332,810.21 | 246,950,215.16 | |
| Total | 253,043,325.37 | 239,700.00 | 6,332,810.21 | 246,950,215.16 |
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 | 33,588,553,502.81 | 33,588,553,502.81 | ||
| Total | 33,588,553,502.81 | 33,588,553,502.81 |
33. Retained earnings
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Retained earnings at the end of the prior period before adjustment | 89,405,432,446.55 | 79,028,605,172.04 |
| Total retained earnings at the beginning of the period before adjustment (“+” for increase, “-” for decrease) | 2,554,581.61 | |
| Retained earnings at the beginning of the period after adjustment | 89,405,432,446.55 | 79,031,159,753.65 |
| Plus: Net profit attributable to owners of the Company as the parent in the current period | 19,056,829,528.87 | 17,036,708,791.18 |
| Less: Dividends payable to ordinary shareholders | 18,127,109,383.35 | 14,680,241,440.97 |
| Retained earnings at the end of the period | 90,335,152,592.07 | 81,387,627,103.86 |
Adjustments to the retained earnings at the beginning of the period:
1) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to the retroactiveadjustment according to the Accounting Standards for Business Enterprises and relevant new provisions.
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 | H1 2024 | H1 2023 | ||
| Revenue | Costs | Revenue | Costs | |
| Principal operations | 50,383,472,503.12 | 11,273,317,113.18 | 45,156,459,899.92 | 10,308,637,784.27 |
| Other operations | 264,554,075.53 | 192,821,394.02 | 349,924,918.45 | 259,322,560.50 |
| Total | 50,648,026,578.65 | 11,466,138,507.20 | 45,506,384,818.37 | 10,567,960,344.77 |
Breakdown of operating revenue and cost of sales:
Unit: RMB
| Type of contract | Liquor products | |
| Operating revenue | Cost of sales | |
| By operating segment | ||
| East China | 13,552,135,672.17 | 2,059,657,459.06 |
| South China | 3,496,256,070.40 | 488,121,708.11 |
| West China | 16,758,820,769.19 | 3,728,672,761.25 |
| North China | 4,841,310,361.21 | 668,971,370.38 |
| Central China | 8,462,195,848.29 | 1,257,657,234.31 |
| By sales channel | ||
| Online | 2,839,694,298.74 | 370,942,307.09 |
| Offline | 44,271,024,422.52 | 7,832,138,226.02 |
| Total | 47,110,718,721.26 | 8,203,080,533.11 |
Information related to performance obligations:
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 RMB8,157,503,632.65.
35. Tax and surcharges
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Consumption tax | 5,687,106,649.35 | 5,192,856,587.27 |
| Urban maintenance and construction tax | 803,552,169.25 | 706,212,574.90 |
| Education surcharge | 344,701,516.76 | 303,125,551.67 |
| Tax on natural resources | 109,522.00 | 31,524.50 |
| Property tax | 23,205,815.59 | 23,143,856.12 |
| Land use tax | 41,156,166.30 | 31,595,916.16 |
| Vehicle and vessel usage tax | 47,254.77 | 52,097.99 |
| Stamp duty | 39,863,996.75 | 36,370,189.99 |
| Local education surcharge | 229,801,011.22 | 202,085,660.05 |
| Environmental protection tax | 322,241.53 | 297,066.68 |
| Total | 7,169,866,343.52 | 6,495,771,025.33 |
36. Administrative expenses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Comprehensive expenses of the Company (including travel, office, expenses of the Board of Directors, employee remuneration, labour insurance, labour protection appliances, etc.) | 741,401,679.01 | 758,888,165.15 |
| Rents | 19,137,530.26 | 8,267,174.44 |
| Trademark and logo royalties | 583,929,526.70 | 523,076,192.92 |
| Comprehensive service fee | 1,049,929.49 | 47,192,255.79 |
| Others | 393,042,973.06 | 419,474,974.55 |
| Total | 1,738,561,638.52 | 1,756,898,762.85 |
37. Selling expenses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Image publicity expense | 932,275,200.41 | 759,134,414.08 |
| Sales promotional expense | 3,440,601,772.58 | 2,612,938,992.07 |
| Storage and logistics expenses | 272,408,237.24 | 268,515,233.60 |
| Expenses of labour | 455,092,791.02 | 459,063,335.23 |
| Other expenses | 265,964,172.17 | 220,793,644.63 |
| Total | 5,366,342,173.42 | 4,320,445,619.61 |
38. Research and development expense
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Comprehensive expenses (including travel, office, payroll, labour insurance, labour protection appliances, etc.) | 103,573,828.45 | 91,323,366.51 |
| Material expenses | 19,708,709.93 | 17,295,271.11 |
| Product design fees | 5,713,011.34 | 4,148,060.23 |
| Depreciation and amortization expenses | 8,987,010.37 | 7,520,452.33 |
| Others | 21,778,381.19 | 15,390,364.86 |
| Total | 159,760,941.28 | 135,677,515.04 |
39. Finance costs
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Interest costs | 17,030,819.31 | 6,811,996.58 |
| Less: Interest income | 1,423,837,619.29 | 1,259,323,479.12 |
| Exchange loss | 8,853.74 | 137,000.43 |
| Less: Exchange gains | 168,365.72 | 265,109.71 |
| Service charge of financial institutions | 1,334,764.34 | 803,023.55 |
| Others | 4,776,438.16 | 1,765,171.86 |
| Total | -1,400,855,109.46 | -1,250,071,396.41 |
40. Other income
Unit: RMB
| Sources of other income | H1 2024 | H1 2023 |
| Government subsidies | 166,637,116.01 | 185,029,071.91 |
| Tax rebates | 44,310,389.47 | 24,684,000.00 |
| Tax preferences | 9,801,882.16 | 8,998,855.65 |
| Total | 220,749,387.64 | 218,711,927.56 |
41. Investment income
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Return on long-term equity investments measured using the equity method | 21,877,331.70 | 20,626,708.35 |
| Total | 21,877,331.70 | 20,626,708.35 |
42. Credit impairment losses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Loss on uncollectible accounts receivable | -1,477,823.13 | -1,889,602.14 |
| Loss on uncollectible other receivables | -712,187.88 | -1,824,092.30 |
| Total | -2,190,011.01 | -3,713,694.44 |
43. Gains on disposals of assets
Unit: RMB
| Source of gains on disposals of assets | H1 2024 | H1 2023 |
| Disposal of non-current assets | -3,917,579.22 | 237,968.66 |
| Total | -3,917,579.22 | 237,968.66 |
44. Non-operating income
Unit: RMB
| Item | H1 2024 | H1 2023 | Amounts included in current exceptional profit or loss |
| Penalty income | 4,296,135.48 | 4,249,193.13 | 4,296,135.48 |
| Gains from scrap of non-current assets | 138,044.69 | 81,404.56 | 138,044.69 |
| Others | 8,070,931.91 | 7,619,708.88 | 8,070,931.91 |
| Total | 12,505,112.08 | 11,950,306.57 | 12,505,112.08 |
45. Non-operating expense
Unit: RMB
| Item | H1 2024 | H1 2023 | Amounts included in current exceptional profit or loss |
| Donations | 906,300.00 | 4,450,100.00 | 906,300.00 |
| Penalty expenditure | 410,453.12 | 400,029.17 | 410,453.12 |
| Loss on scrap of non-current assets | 878,000.59 | 46,819,840.81 | 878,000.59 |
| Exceptional loss | 192,564.22 | 495,599.84 | 192,564.22 |
| Others | 4,777,144.49 | 3,083,375.63 | 4,777,144.49 |
| Total | 7,164,462.42 | 55,248,945.45 | 7,164,462.42 |
46. Income tax expense
(1) List of income tax expense
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Current income tax expense | 6,640,486,565.75 | 5,406,739,476.25 |
| Deferred income tax expense | -76,945,308.03 | 472,993,837.99 |
| Total | 6,563,541,257.72 | 5,879,733,314.24 |
(2) Reconciliation from accounting profit to income tax expense
Unit: RMB
| Item | H1 2024 |
| Gross profit | 26,390,071,862.94 |
| Income tax expense based on the statutory/applicable tax rates | 6,597,517,965.74 |
| Effects of different tax rates of subsidiaries | -85,397,061.26 |
| Effects of adjustments to income tax of the prior period | 52,675,689.69 |
| Effects of non-taxable revenue | -5,469,332.93 |
| Effects of non-deductible costs, expenses and losses | 409,296.01 |
| Effects of the utilization of deductible losses on which deferred income tax assets were unrecognized in the prior period | -1,216,890.29 |
| Effects of deductible temporary differences or losses on which deferred income tax assets are unrecognized in the current period | 11,520,029.80 |
| Effects of the over-deduction in the calculation of the taxable amount in relation to research and development expense | -6,498,439.04 |
| Income tax expense | 6,563,541,257.72 |
47. Cash flow statement items
(1) Cash generated from/used in operating activities
Cash generated from other operating activities:
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Interest income | 397,946,827.05 | 350,049,501.12 |
| Security deposits and government grants received | 416,178,831.10 | 403,987,853.63 |
| Total | 814,125,658.15 | 754,037,354.75 |
Cash used in other operating activities:
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Expenses relating to selling | 1,682,097,066.99 | 1,255,864,296.21 |
| Trademark and logo royalties | 460,920,003.79 | 442,155,116.39 |
| Security deposits paid, payments for current transactions, and other out-of-pocket expenses | 1,261,267,878.47 | 1,101,723,259.65 |
| Total | 3,404,284,949.25 | 2,799,742,672.25 |
(2) Cash generated from/used in financing activities
Cash used in other financing activities:
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Payment for the lease liabilities | 157,849,148.32 | 201,882,821.01 |
| Total | 157,849,148.32 | 201,882,821.01 |
Changes in liabilities as a result of financing activities:
□ Applicable ? Not applicable
48. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
| Supplementary information | H1 2024 | H1 2023 |
| 1. Reconciliation of net profit to net cash generated from/used in operating activities: | ||
| Net profit | 19,826,530,605.22 | 17,792,533,904.19 |
| Add: Asset impairment allowances | 1,412,916.55 | 937,272.04 |
| Depreciation of fixed assets, depletion of oil and gas | 229,682,109.63 | 215,850,385.03 |
| assets, and depreciation of productive living assets | ||
| Depreciation of right-of-use assets | 214,586,811.40 | 187,720,696.56 |
| Amortization of intangible assets | 74,348,838.14 | 35,263,937.14 |
| Amortization of long-term prepaid expense | 38,240,450.96 | 37,841,942.84 |
| Loss on the disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) | 3,917,579.22 | -237,968.66 |
| Loss on the retirement of fixed assets (“-” for gain) | 739,955.90 | 46,738,436.25 |
| Loss on changes in fair value (“-” for gain) | ||
| Finance costs (“-” for income) | 17,030,819.31 | 6,811,996.58 |
| Loss on investment (“-” for income) | -21,877,331.70 | -20,626,708.35 |
| Decrease in deferred income tax assets (“-” for increase) | -251,081,456.60 | 328,617,545.23 |
| Increase in deferred income tax liabilities (“-” for decrease) | 208,769,227.79 | -44,345,601.14 |
| Decrease in inventories (“-” for increase) | 541,538,716.59 | -114,834,365.08 |
| Decrease in operating receivables (“-” for increase) | -6,566,479,747.87 | 2,433,772,661.79 |
| Increase in operating payables (“-” for decrease) | -889,430,838.91 | -9,576,225,248.12 |
| Others | ||
| Net cash generated from/used in operating activities | 13,427,928,655.63 | 11,329,818,886.30 |
| 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 | 125,296,379,907.83 | 89,762,101,198.36 |
| Less: Opening balance of cash | 113,095,684,224.30 | 90,584,643,897.66 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 12,200,695,683.53 | -822,542,699.30 |
(2) Composition of cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I Cash | 125,296,379,907.83 | 113,095,684,224.30 |
| Of which: Cash on hand | 4,855.27 | 42,156.81 |
| Bank deposits that can be readily drawn on demand | 125,204,874,285.18 | 113,032,146,687.11 |
| Other monetary assets that can be readily drawn on demand | 91,500,767.38 | 63,495,380.38 |
| II Cash equivalents | ||
| III Cash and cash equivalents, end of the period | 125,296,379,907.83 | 113,095,684,224.30 |
(3) Monetary assets that do not belong to cash and cash equivalents
Unit: RMB
| Item | H1 2024 | H1 2023 | Reason for not belong to cash and cash equivalents |
| Security deposits for bank acceptance bills, etc. | 234,648,885.56 | 304,672,444.89 | Restricted use |
| Accrued interest on term deposits | 3,185,530,219.10 | 2,490,524,342.90 | Accrued interest |
| Total | 3,420,179,104.66 | 2,795,196,787.79 |
49. 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 | 2,700,964.13 | 7.11052 | 19,205,255.79 |
| 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 shallbe disclosed: principal place of business, functional currency and basis for the choice, change offunctional currency and reasons)
□ Applicable ? Not applicable
50. Leases
(1) The Company as the lessee
? Applicable □ Not applicableVariable lease payments not included in lease liabilities:
? Applicable □ Not applicable
Unit: RMB
| Item | H1 2024 |
| Variable lease payments not included in lease liabilities | 73,943,265.46 |
Expenses on short-term leases or leases of low-value assets:
? Applicable □ Not applicable
Unit: RMB
| Item | H1 2024 |
| Expenses on short-term leases or leases of low-value assets | 29,478,761.63 |
(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 | 16,075,015.49 | |
| Total | 16,075,015.49 |
Finance leases with the Company as the lessor:
□ Applicable ? Not applicable
Yearly undiscounted lease receipts in the coming five years:
□ Applicable ? Not applicable
VIII Research and Development Expenditures
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Comprehensive expenses (including travel, office, payroll, labour insurance, labour protection appliances, etc.) | 103,573,828.45 | 91,323,366.51 |
| Material expenses | 19,708,709.93 | 17,295,271.11 |
| Product design fees | 5,713,011.34 | 4,148,060.23 |
| Depreciation and amortization expenses | 8,987,010.37 | 7,520,452.33 |
| Others | 21,778,381.19 | 15,390,364.86 |
| Total | 159,760,941.28 | 135,677,515.04 |
| Of which: expensed research and development expenditures | 159,760,941.28 | 135,677,515.04 |
1. Significant outsourced research and development projects
The Company had no significant outsourced research and development 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
Indicate whether there was any transaction or event during the current period in which control of asubsidiary ceased.
□ Yes ? No
Indicate whether there was any step-by-step disposal of the investment in a subsidiary through multipletransactions and control of the subsidiary ceased during the current period.
□ Yes ? No
5. Changes in the consolidation scope for other reasons
As approved at the Second Meeting of the Sixth Board of Directors of 2024 dated 19 April 2024, theCompany’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited hasincorporated “Sichuan Yibin Plastic Packaging Products Co., Ltd.” (“Plastic Packaging Products”). PlasticPackaging Products has a registered capital of RMB50 million, and the Company owns 100% of PlasticPackaging Products.
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. | 85,000,000.00 | Yibin | Yibin | Manufacturing | 99.00% | 0.99% | Incorporated |
| Yibin Wuliangye Liquor Sales Co., Ltd. | 200,000,000.00 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. | 20,000,000.00 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Yibin Wuliangchun Brand Marketing Co., Ltd | 20,000,000.00 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. | 20,000,000.00 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | 30,000,000.00 | Yibin | Yibin | Commercial | 99.00% | 0.95% | Incorporated |
| Yibin Jiangjiu Liquor Co., Ltd. | 50,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | 537,000,000.00 | Yibin | Yibin | Manufacturing | 51.00% | Incorporated | |
| Sichuan Jinwuxin Technology Co., Ltd. | 14,000,000.00 | Yibin | Yibin | Commercial | 51.00% | Business combination involving entities not under common control | |
| Sichuan Jiebeike Environmental Technology Co., Ltd. | 10,000,000.00 | Yibin | Yibin | Engineering | 26.01% | Incorporated | |
| Yibin Changjiangyuan Liquor Co., Ltd. | 20,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Yibin Changjiangyuan Trade Co., Ltd. | 19,800,000.00 | Yibin | Yibin | Commercial | 100.00% | Incorporated | |
| Yibin Changjiangyuan Distillery Co., Ltd. | 18,900,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Yibin Wuliangye Organic Agriculture Development Co., Ltd. | 10,000,000.00 | Yibin | Yibin | Agricultural | 100.00% | Incorporated | |
| Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | 3,000,000.00 | Yibin | Yibin | Manufacturing | 90.00% | Incorporated | |
| Yibin Xianlin Liquor Marketing Co., Ltd. | 3,000,000.00 | Yibin | Yibin | Commercial | 90.00% | Incorporated | |
| Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | 14,000,000.00 | Yibin | Yibin | Manufacturing | 97.00% | 1.53% | Incorporated |
| Yibin Xinxing Packaging Co., Ltd. | 5,000,000.00 | Yibin | Yibin | Commercial | 98.53% | Incorporated | |
| Sichuan Yibin Plastic Packaging Materials Company Limited | 150,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Sichuan Yibin Jiang’an Plastic New Materials Company Limited | 50,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Plastic Packaging Products Co., Ltd. | 50,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | 100,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | 200,000,000.00 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Sichuan Yibin Push Group 3D Co., Ltd. | 22,133,300.00 | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving entities not under common control | |
| Guangdong Plastic Packaging Materials Company Limited | 49,000,000.00 | Foshan | Foshan | Manufacturing | 100.00% | Incorporated | |
| Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd. | 50,000,000.00 | Yibin | Yibin | Investment | 95.00% | Incorporated | |
| Wuliangye Dashijie (Beijing) Trade Co., Ltd. | 20,000,000.00 | Beijing | Beijing | Commercial | 95.00% | Incorporated | |
| Handan Yongbufenli Liquor Co., Ltd. | 500,000,000.00 | Handan | Handan | Manufacturing | 51.00% | Incorporated | |
| Linzhang Desheng Liquor Trade Co., Ltd. | 1,000,000.00 | Handan | Handan | Commercial | 51.00% | Incorporated | |
| Handan Yongbufenli Sales Co., Ltd. | 5,000,000.00 | Handan | Handan | Commercial | 51.00% | Incorporated | |
| Wuguchun Jiu Ye Co., Henan. | 373,280,762.00 | Huaibi | Huaibin | Manufa | 51.03% | Business |
| China | n | cturing | combination involving entities not under common control | ||||
| Huaibin Tenglong Trade Co., Ltd. | 5,000,000.00 | Huaibin | Huaibin | Commercial | 51.03% | Incorporated | |
| Wuguchun Jiu Ye Sales Co., Henan. China | 10,000,000.00 | Huaibin | Huaibin | Commercial | 51.03% | Incorporated | |
| Sichuan Wuliangye Culture Tourism Development Co., Ltd. | 50,000,000.00 | Yibin | Yibin | Tourism | 80.00% | Incorporated | |
| Sichuan Wuliangye Tourist Agency Co., Ltd. | 1,000,000.00 | Yibin | Yibin | Tourism | 80.00% | Incorporated | |
| Yibin Wuliangye Creart Co., Ltd. | 100,000,000.00 | Yibin | Yibin | Commercial | 45.00% | Incorporated | |
| Sichuan Wuliangye NongXiang Baijiu Co., Ltd. | 100,000,000.00 | Yibin | Yibin | Commercial | 95.00% | Incorporated | |
| Sichuan Wuliangye New Retail Management Co., Ltd. | 100,000,000.00 | Chengdu | Chengdu | Commercial | 90.00% | Incorporated |
Note on the difference between shareholding proportion and proportion of voting rights insubsidiary:
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 andnot controlling 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. and
the 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.
(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% | 623,007,257.60 | 2,339,739,933.25 |
(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. | 64,483,211,627.69 | 3,557,881,234.95 | 68,041,092,862.64 | 21,432,661,136.14 | 104,253,778.92 | 21,536,914,915.06 |
| Opening balance | ||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| 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 | |
Unit: RMB
| Subsidiary | H1 2024 | |||
| Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
| Yibin Wuliangye Liquor Sales Co., Ltd. | 38,924,211,000.09 | 12,460,145,152.08 | 12,460,145,152.08 | 9,335,517,505.07 |
| H1 2023 | ||||
| Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
| 34,753,003,408.33 | 12,087,869,194.03 | 12,087,869,194.03 | 7,643,096,296.42 | |
2. 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/H1 2024 | Opening balance/H1 2023 | |
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | |
| Current assets | 36,865,397,768.88 | 11,767,876,781.26 |
| Non-current assets | 16,824,958,310.26 | 41,146,331,998.09 |
| Total assets | 53,690,356,079.14 | 52,914,208,779.35 |
| Current liabilities | 48,829,642,034.40 | 48,080,869,222.79 |
| Non-current liabilities | 2,866,771.42 | 5,478,067.66 |
| Total liabilities | 48,832,508,805.82 | 48,086,347,290.45 |
| Non-controlling interests | ||
| Equity attributable to the shareholders of the Company as the parent | 4,857,847,273.32 | 4,827,861,488.90 |
| Share of net assets in proportion to the Company’s interest | 1,970,342,854.06 | 1,958,180,619.90 |
| Adjustments | ||
| --Goodwill | ||
| --Unrealized profit of internal transactions | ||
| --Others | ||
| Carrying amount of equity investments in associates | 1,970,342,854.06 | 1,958,180,619.90 |
| Fair value of equity investments in associates with quoted prices on the open market | ||
| Operating revenue | 199,580,727.31 | 204,373,885.44 |
| Net profit | 64,385,784.42 | 59,833,900.69 |
| Net profit of discontinued operations | ||
| Other comprehensive income | ||
| Total comprehensive income | 64,385,784.42 | 59,833,900.69 |
| Dividends received from the associates in the current period | 13,952,640.00 | 23,638,368.00 |
(3) Aggregate financial information of unimportant joint ventures and associates
Unit: RMB
| Closing balance/H1 2024 | Opening balance/H1 2023 | |
| Joint ventures: | ||
| Aggregate amount in proportion to the Company’s interests | ||
| Associates: | ||
| Total carrying amount of investments | 57,948,078.33 | 62,185,620.79 |
| Aggregate amount in proportion to the Company’s interests | ||
| --Net profit | -4,237,542.46 | -3,641,921.77 |
| --Total comprehensive income | -4,237,542.46 | -3,641,921.77 |
3. 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 | 251,827,069.86 | 239,700.00 | 6,307,810.19 | 245,758,959.67 | Related to assets | ||
| Deferred income | 1,216,255.51 | 25,000.02 | 1,191,255.49 | Related to income | |||
| Total | 253,043,325.37 | 239,700.00 | 6,332,810.21 | 246,950,215.16 |
3. Government grants through profit or loss
? Applicable □ Not applicable
Unit: RMB
| Accounting item | H1 2024 | H1 2023 |
| Other income | 166,637,116.01 | 185,029,071.91 |
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 | 19,576,430,505.90 | 19,576,430,505.90 | ||
| Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | ||
| Total assets measured at fair value on an ongoing basis | 19,577,630,505.90 | 19,577,630,505.90 | ||
| 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 bases
□ Applicable ? Not applicable
3. For fair value measurement at level II on an ongoing and non-ongoing bases, qualitative andquantitative information on the valuation techniques used and significant parameters
□ Applicable ? 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 parameters
□ Applicable ? Not applicable
6. For fair value measurement items on a continuous basis, if there is a conversion between differentlevels in the current period, the reasons for the conversion and the policy for determining the conversiontime point
□ Applicable ? Not applicable
7. Changes in valuation techniques occurring in the current period and reasons for changes
□ Applicable ? Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable ? Not applicable
XIII 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 2,131,778,031.00 shares of theCompany directly or indirectly, taking up 54.92% 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 andassociates of 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 withbalances lasting 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 |
| Sichuan Yibin Wuliangye Group Ecological Distillery 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 |
| Sichuan Yibin Licai Group Co., Ltd. | Subsidiary of Wuliangye Group |
| Yibin Wucai Packaging Co., Ltd. | Subsidiary of Licai Group |
| Yibin Huanyu Trading 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 Chuanhong Tea Group Co., Ltd. | Subsidiary of Wuliangye Tea Industry Development Fund |
| Sichuan Yibin Push International Co., Ltd. | Subsidiary of Push 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 City Commercial Bank Co., Ltd. | Wuliangye Group holds a 19.99% interest. |
| Sichuan Yibin Push Drive Co., Ltd. | Subsidiary of Push 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 |
| 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 Wuliangye Ecological Distillery Co., Ltd. | Subsidiary of Wuliangye Group |
| Sichuan Huansheng Pharmacy Co., Ltd. | Subsidiary of Wuliang Pharmaceutical |
| Chengdu Branch of Anji Logistic Group Co., Ltd. Sichuan | Subsidiary of Anji Logistic Group |
| Yibin Shunanzhuhai Scenic Area Management Co., Ltd. | Subsidiary of Shunan Cultural Tourism Investment Group |
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering ofservices
Purchases of goods/receipt of services:
Unit: RMB
| Related party | Content of transaction | H1 2024 | Approved transaction amount | Over the approved transaction amount or not | H1 2023 |
| Sacred Mountain Molin Group Co., Ltd. Si Chuan | Packaging materials, etc. | 240,466,851.82 | 207,001,476.34 | ||
| Wuming Tea Industry Holding Co., Ltd. | PPE, etc. | 175,441,681.54 | 2,337,444.26 | ||
| Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | Raw materials, glass bottles, etc. | 123,235,167.33 | 202,532,443.60 | ||
| Sichuan Wuliangye Products Co., Ltd. | Raw materials, etc. | 79,167,460.88 | 25,917,444.71 | ||
| Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | PPE, etc. | 53,283,746.48 | 45,870,444.38 | ||
| Yibin Wuliangye Ecological Distillery Co., Ltd. | Liquor products, etc. | 51,418,327.21 | |||
| Sichuan Yibin Push International Co., Ltd. | Anti-counterfeit labels etc. | 46,423,262.87 |
| Sichuan Putian Packaging Co., Ltd. | Raw materials, etc. | 37,246,303.40 | 7,421,727.40 | ||
| Chengdu PUTH Medical Technology Co., Ltd. | Raw materials, etc. | 20,854,338.99 | 37,461,741.54 | ||
| Yibin Sanjiang Huiyuanhe Agricultural Investment Development Co., Ltd. | Raw materials, etc. | 19,953,657.42 | |||
| Sichuan Huansheng Pharmacy Co., Ltd. | Medicines, etc. | 12,757,753.98 | 29,400.00 | ||
| Sichuan Yibin Push Mold Co., Ltd. | Moulds, etc. | 11,690,265.49 | 11,769,911.50 | ||
| Sichuan Yibin Push Drive Co., Ltd. | Boxes, etc. | 11,543,968.28 | 8,747,674.70 | ||
| Push Information & Automation (Chengdu) Co., Ltd. | Packaging materials | 10,567,769.92 | 783,927.47 | ||
| Yibin Xinjinxiu Garden Landscaping Co., Ltd. | Raw materials, etc. | 8,388,440.05 | |||
| Yi Bin Jia Mei Smartpackaging Co., Ltd. | Raw materials | 7,565,560.54 | 1,260,840.54 | ||
| Chengdu Huayu Glass Manufacturing Co., Ltd. | Glass bottles, etc. | 7,366,799.00 | 12,423,336.45 | ||
| Sichuan Yibin Push Mold Co., Ltd. | Bottle caps, comprehensive materials, etc. | 5,269,999.98 | 9,509,372.10 | ||
| Sichuan Yibin Push Building Materials Co., Ltd. | Packaging materials | 3,220,159.28 | 5,376,221.73 | ||
| Sichuan Yibin Push Auto Parts Co., Ltd. | Raw materials, etc. | 1,312,316.53 | 5,718,676.00 | ||
| WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Health liquor | 105,592,684.05 | |||
| Sichuan Chuanhong Tea Group Co., Ltd. | Tea | 12,684.00 | 24,683,627.25 | ||
| Yibin Huanyu Trading Co., Ltd. | Health liquor | 13,207,079.46 | |||
| Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Medicines, etc. | 11,491,021.86 | |||
| Sichuan Yibin Global Environmental Technology Co., Ltd. | Glass bottles | 9,393.89 | 8,561,271.74 | ||
| Other miscellaneous purchases of goods from related parties | 8,229,723.51 | 4,493,622.56 | |||
| Total purchases of goods from related parties | 935,425,632.39 | 752,191,389.64 | |||
| Anji Logistic Group Co., Ltd. Sichuan | Freight and miscellaneous charges, service charges, etc. | 353,515,103.36 | 302,263,739.29 | ||
| Sichuan Andaxin Logistics Co., Ltd. | External labour costs | 87,112,742.55 | 75,645,109.14 | ||
| Yibin Wucai Packaging Co., Ltd. | External processing expenses | 35,673,826.80 | 1,030,482.77 | ||
| Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Freight and miscellaneous charges, shuttle service charges, etc. | 23,464,521.31 | 27,513,681.27 | ||
| Chengdu PUTH Medical Technology Co., Ltd. | External processing expenses, etc. | 12,019,189.03 | 4,086,461.50 | ||
| Sichuan Nongwu E-commerce Co., Ltd. | Marketing support expenses | 9,888,822.08 | |||
| Sichuan Wuliangye Products Co., Ltd. | Repair expenses, | 8,617,973.65 | 14,132,830.19 |
| and marketing support expenses | |||||
| Wuming Tea Industry Holding Co., Ltd. | Marketing support expenses, etc. | 7,635,079.10 | 3,131,998.67 | ||
| Yi Bin Jia Mei Smartpackaging Co., Ltd. | External processing expenses | 4,124,506.03 | 64,128,580.14 | ||
| Sichuan Yibin Push Intelligent Technology Co., Ltd. | Repair expenses, etc. | 2,346,546.16 | 6,404,316.39 | ||
| Sichuan Chuanhong Tea Group Co., Ltd. | Promotion expenses, etc. | 1,550,864.06 | 8,461,698.11 | ||
| Other miscellaneous receipts of services from related parties | 19,648,796.02 | 11,105,868.03 | |||
| Total receipts of services from related parties | 565,597,970.15 | 517,904,765.50 |
Sale of goods/rendering of services:
Unit: RMB
| Related party | Content of transaction | H1 2024 | H1 2023 |
| Yibin Wuliangye Group I&E Co., Ltd. | Liquor products, etc. | 419,701,184.60 | 367,008,796.93 |
| Sichuan Putian Packaging Co., Ltd. | Bottle caps, slices, etc. | 87,079,604.00 | 69,286,660.73 |
| Sichuan Nongwu E-commerce Co., Ltd. | Liquor products, etc. | 77,782,379.87 | 1,172,103.55 |
| Yibin Shunan Mingkun Supply Chain Service Co., Ltd. | Liquor products, etc. | 26,548,495.48 | 0.00 |
| Chengdu PUTH Medical Technology Co., Ltd. | Raw materials, etc. | 18,603,435.51 | 28,507,995.29 |
| Wuming Tea Industry Holding Co., Ltd. | Liquor products, etc. | 14,293,380.59 | 179,228,782.31 |
| Chengdu Huayu Glass Manufacturing Co., Ltd. | Cartons, etc. | 9,161,960.72 | 5,117,674.19 |
| Yi Bin Jia Mei Smartpackaging Co., Ltd. | Paper products, etc. | 7,915,329.61 | 1,214,711.36 |
| Sichuan Wuliangye Products Co., Ltd. | Liquor products, etc. | 7,541,166.60 | 5,145,132.71 |
| Sichuan Linhu Tea Industry Co., Ltd. | Packaging boxes, etc. | 6,064,031.62 | 3,244,174.16 |
| Sichuan Chuanhong Tea Group Co., Ltd. | Packaging boxes, etc. | 5,071,810.47 | 3,479,588.87 |
| Sichuan Yibin Push Drive Co., Ltd. | Slices, etc. | 4,194,872.53 | 5,578,997.82 |
| Yibin Airport Aviation Service Co., Ltd. | Liquor products | 2,539,000.00 | 31,526,159.28 |
| Yibin Shunan Cultural Tourism and Creative Product Development Co., Ltd. | Liquor products, etc. | 764,890.39 | 442,477,857.70 |
| Sichuan United Liquor Investment Management Co., Ltd. | Liquor products | 83,920.33 | 14,108,849.55 |
| Yibin Construction Investment Group Jinpaiyuan Supply Chain Management Co., Ltd. | Liquor products | 300,887,362.93 | |
| Sichuan Yibin Wuliangye Group Ecological Distillery and Marketing Co., Ltd. | Liquor products | 111,469,944.62 | |
| Sichuan Global Insulator Co., Ltd. | Glass bottles, etc. | 40,284,110.80 | |
| Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Liquor products, etc. | 11,654,946.03 | |
| Zhejiang Pukai New Material Co., Ltd. | Slices | 8,449,819.82 | |
| Other miscellaneous sales to related parties | 19,430,227.41 | 28,802,056.93 |
| Total | 706,775,689.73 | 1,658,645,725.58 |
(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 H1 2024 | Lease income recognized in H1 2023 |
| Chengdu Branch of Anji Logistic Group Co., Ltd. Sichuan | Buildings and constructions | 1,637,781.60 | |
| Other miscellaneous leases | Buildings and constructions, and warehouses, etc. | 2,605,181.56 | 377,880.88 |
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 | |||||
| H1 2024 | H1 2023 | H1 2024 | H1 2023 | H1 2024 | H1 2023 | H1 2024 | H1 2023 | H1 2024 | H1 2023 | ||
| Yibin Push Linko Technology Co., Ltd. | Warehouses | 306,778.03 | 4,074,347.44 | 3,154,914.94 | 2,422,072.41 | 10,283.63 | 7,990,918.52 | ||||
| Anji Logistic Group Co., Ltd. Sichuan | Warehouses | 2,026,088.80 | 47,836,197.32 | 59,220,761.70 | 12,579,302.60 | 6,728,926.64 | 702,814.36 | ||||
| Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | Buildings and constructions | 2,057,142.84 | 1,714,285.70 | 31,473.87 | 77,364.07 | ||||||
| Sichuan Yibin Global Group Co., Ltd. | Buildings and constructions | 1,667,388.67 | 762,616.78 | 157,995.92 | 6,743.29 | 18,018,268.24 | |||||
| Sichuan Yibin Wuliangye Group | Operation and management | 289,980.00 | 1,094,532.67 | 13,258,064.75 | 14,627,700.00 | 1,517,481.49 | 398,996.11 | 93,202,000.80 | |||
| Co., Ltd. | areas (note 2) | ||||||||||
| Sichuan Yibin Licai Group Co., Ltd. | Buildings and constructions | 1,363,000.00 | 2,948,126.00 | 1,551,764.00 | 131,626.38 | 26,679,866.39 | |||||
| Sichuan Yibin Wuliangye Group Co., Ltd. | Land (note 1) | 123,261,527.65 | 148,304,273.22 | 11,867,786.67 | 4,045,258.53 | 847,706,504.22 | |||||
| Yibin Push Assets Management Co., Ltd. | Buildings and constructions | 1,820,005.74 | 1,468,639.17 | 1,215,960.00 | 1,823,940.00 | 3,512.90 | 43,326.59 | ||||
| Sichuan Yibin Push Group Co., Ltd. | Buildings and constructions | 4,612,887.62 | 1,255,268.57 | 197,104.08 | 113,675.82 | 26,280,543.35 | |||||
| Other miscellaneous leases | Warehouses, etc. | 13,691,636.07 | 553,877.44 | 1,266,909.13 | 8,255,317.47 | 40,411.63 | 265,621.71 | 2,539,615.86 | |||
| Total | 17,677,482.90 | 1,648,410.11 | 53,730,550.50 | 66,792,441.81 | 163,893,019.67 | 183,472,328.38 | 14,660,490.93 | 4,950,986.12 | 1,014,426,798.86 | 7,990,918.52 |
Notes to the leases between the Company and related parties:
Note 1: On 22 January 2024, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into a Land Lease Agreement, according to which WuliangyeGroup leased Wujiaba Land Parcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, Zhuchangqu Land Parcel, Guifei Land Parcel, YuanmingyuanLand Parcel I and II, Nanxi Land Parcel I, II, and III, and 1,000 mu of land in the north side of Hongba Road, totalling 3,697,845.83 square meters, to the Company.The annual rent is RMB295,827,666.4, and the lease term is from 1 January 2024 to 31 December 2026.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 leasecriterion of previous years and in accordance with the Reply of Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment ofthe Land Lease Criterion (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 is consistent with prevailing land price of Yibin". The Company and Wuliangye Group determine the rent of leased land as RMB80 per square meter peryear through mutual agreement.
Note 2: On 22 January 2024, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the Operation and Management Areas Lease Agreement,according to which Wuliangye Group leases part of the operation and management areas (including the office building, multi-function pavilion, etc.) owned by it tothe Company. The leased area is 27,121.32 square meters, with the annual rent of RMB29.2552 million. The lease term is from 1 January 2024 to 31 December 2026.
(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) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
| Related party | Content of transaction | H1 2024 | H1 2023 |
| Sichuan Yibin Wuliangye Group Co., Ltd. | Trademark and logo royalties (note) | 583,579,159.03 | 523,042,335.92 |
| Sichuan Yibin Wuliangye Group Co., Ltd. | Comprehensive service fee | 46,845,485.49 | |
| Other miscellaneous purchases of equipment, etc. | 10,895,250.97 | 5,965,216.58 | |
| Total | 594,474,410.00 | 575,853,037.99 |
Note: On 31 December 2023, 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 19 trademarks, exclusive rightof use of 202 trademarks, and unpaid exclusive right of use of 22 trademarks. The royalty shall be paid by thefollowing means: 1) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales revenue from allliquor products using the factory emblem; 2) 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 2024 to 31 December 2026.b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.: On 28 June 2024, theCompany and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafter referred to as "Wuliangye GroupFinance") entered into the Financial Service Agreement. According to the Agreement, the daily balances of theCompany’s deposits in as well as loans and credit lines from Wuliangye Group Finance in 2024 shall be no morethan RMB55 billion and RMB10 billion, respectively.The total deposits of the Company with Wuliangye Group Finance was RMB41,748,342,979.22 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 RMB556,299,642.15 in total; and Wuliangye Group Finance issued bank acceptance bills ofRMB19,355,289.75 for the Company during the current period (undue bank acceptance bills as at 30 June 2024:
RMB19,355,289.75).
c) Related-party transactions with Yibin City Commercial Bank Co., Ltd.: The total deposits of the Companywith Yibin City Commercial Bank Co., Ltd. was RMB12,908,978,373.80 at the end of the period; the currentinterest income is RMB159,152,209.70 in total; Yibin City Commercial Bank Co., Ltd. issued bank acceptance
bills of RMB188,335,650.00 for the Company during the current period (undue bank acceptance bills as at 30June 2024: RMB188,335,650.00).
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. | 11,523,877.83 | 11,034,316.71 | ||
| Account receivable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 6,482,321.07 | 3,953,526.99 | ||
| Account receivable | Chengdu PUTH Medical Technology Co., Ltd. | 2,537,100.00 | |||
| Account receivable | Yibin Grace Fiber Industry Co., Ltd. | 2,215,549.57 | 2,641,212.86 | ||
| Account receivable | Other miscellaneous accounts receivable | 2,392,257.38 | 1,236,709.66 | ||
| Prepayment | Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | 3,398,230.09 | 3,398,230.09 | ||
| Prepayment | Wuming Tea Industry Holding Co., Ltd. | 6,016,608.60 | |||
| Prepayment | Yibin Xinjinxiu Garden Landscaping Co., Ltd. | 4,380,147.38 | |||
| Prepayment | Other miscellaneous prepayments | 850,127.77 | 821,470.76 | ||
| Monetary assets | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,090,649,408.05 | 606,922,650.12 | ||
| Monetary assets | Yibin City Commercial Bank Co., Ltd. | 243,851,435.64 | 118,345,047.42 | ||
| Other receivables | Other miscellaneous other receivables | 991,114.85 | 1,037,121.60 | ||
The amounts related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. and Yibin City CommercialBank Co., 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 |
| Contract liability | Yibin Construction Investment Group Jinpaiyuan Supply Chain Management Co., Ltd. | 36,106,483.50 | 44,602,126.69 |
| Contract liability | Sichuan Wuliangye Products Co., Ltd. | 30,505,492.41 | 35,457,682.68 |
| Contract liability | Sichuan Yibin Wuliangye Group Ecological Distillery and Marketing Co., Ltd. | 11,699,334.09 | 1,732,228.75 |
| Contract liability | Yibin Wuliangye Group I&E Co., Ltd. | 3,191,942.80 | 199,518,341.92 |
| Contract liability | Wuming Tea Industry Holding Co., Ltd. | 1,814,235.12 | 620,639.12 |
| Contract liability | Sichuan Nongwu E-commerce Co., Ltd. | 1,536,907.60 | 1,130,074.52 |
| Contract liability | Anji Logistic Group Co., Ltd. Sichuan | 1,408,823.45 | 50,286.24 |
| Contract liability | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 1,307,000.30 | 1,023,041.91 |
| Contract liability | Sichuan Yibin Push Building Materials Co., Ltd. | 1,266,198.00 | 927,779.69 |
| Contract liability | Yibin Shunan Mingkun Supply Chain Service Co., Ltd. | 500,400.00 | 26,548,672.57 |
| Contract liability | Other miscellaneous contract liabilities | 4,820,980.85 | 3,922,376.57 |
| Other payable | Wuming Tea Industry Holding Co., Ltd. | 2,312,536.00 | 57,242,321.41 |
| Other payable | Yibin Sanjiang Huiyuanhe Agricultural Investment Development Co., Ltd. | 1,883,607.50 | 1,883,607.50 |
| Other payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 1,712,809.49 | 2,105,565.41 |
| Other payable | Yibin Shunanzhuhai Scenic Area Management Co., Ltd. | 1,500,000.00 | |
| Other payable | Push Information & Automation (Chengdu) Co., Ltd. | 1,496,620.39 | 1,480,720.39 |
| Other payable | Anji Logistic Group Co., Ltd. Sichuan | 751,113.09 | 216,589,647.24 |
| Other payable | Other miscellaneous other payables | 6,660,038.58 | 5,459,594.24 |
| Dividend payable | Yibin Development Holding Group Co., Ltd. | 6,241,679,253.40 | |
| Dividend payable | Sichuan Yibin Wuliangye Group Co., Ltd. | 3,713,724,151.37 | |
| Note payable | Anji Logistic Group Co., Ltd. Sichuan | 10,518,942.06 | 5,757,438.64 |
| Note payable | Yi Bin Jia Mei Smartpackaging Co., Ltd. | 9,850,000.00 | |
| Note payable | Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | 7,934,890.71 | 14,607,310.45 |
| Note payable | Yibin Wucai Packaging Co., Ltd. | 7,000,000.00 | |
| Note payable | Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | 2,286,618.47 | |
| Note payable | Wuming Tea Industry Holding Co., Ltd. | 1,638,944.60 | |
| Note payable | Yibin Sanjiang Huiyuanhe Agricultural Investment Development Co., Ltd. | 1,320,000.00 | |
| Note payable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 6,300,559.87 | |
| Note payable | Other miscellaneous notes payable | 1,339,025.29 | 148,734.18 |
| Account payable | Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. | 12,710,171.71 | 12,485,412.92 |
| Account payable | Sichuan Yibin Wuliangye Group Co., Ltd. | 6,998,669.23 | |
| Account payable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 5,809,711.88 | 359,504.22 |
| Account payable | Sichuan Yibin Global Environmental Technology Co., Ltd. | 3,774,267.20 | 3,825,469.04 |
| Account payable | Sichuan Yibin Push Drive Co., Ltd. | 1,256,917.98 | |
| Account payable | Sichuan Yibin Push International Co., Ltd. | 108,505.76 | 1,433,373.36 |
| Account payable | Anji Logistic Group Co., Ltd. Sichuan | 93,288.05 | 135,225,553.79 |
| Account payable | Sichuan Putian Packaging Co., Ltd. | 37,096.80 | 1,350,604.28 |
| Account payable | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 224,885,409.87 | |
| Account payable | Sichuan Wuliangye Products Co., Ltd. | 3,727,072.00 | |
| Account payable | Yibin Push Assets Management Co., Ltd. | 3,096,000.00 | |
| Account payable | Other miscellaneous accounts payable | 309,191.50 | 1,852,234.59 |
| Advance from customer | Other miscellaneous advances from customers | 17,142.71 |
XIV Undertakings and Contingencies
1. Significant undertakings
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
2. Contingencies
(1) Contract dispute between Handan Yongbufenli Liquor Co., Ltd. (hereinafter referred to as“Yongbufenli”) and Chengdu Yuexin Liquor Co., Ltd. (hereinafter referred to as “Yuexin Liquor”): In October2022, Yongbufenli filed a lawsuit with the Intermediate People's Court of Handan against Yuexin Liquor,requesting a) payment of RMB100.4928 million in outstanding payments from the defendant, plus interestcalculated at the Loan Prime Rate (“LPR”) from 21 July 2020 to the date when the payment is made in full; andb) the defendant to bear all litigation and appraisal fees. In March 2023, the first-instance judgment dismissedYongbufenli's claims. In April 2023, Yongbufenli filed a second-instance appeal with the Supreme People'sCourt of Hebei, and the case was reopened on 10 April 2024. The judgment has not yet been made.
(2) Contract dispute between Handan Yongbufenli Liquor Co., Ltd. (hereinafter referred to as“Yongbufenli”) and Sichuan Baijiadi Liquor Co., Ltd. (hereinafter referred to as “Baijiadi”): In January 2022,Yongbufenli filed a lawsuit with the People's Court of Linzhang County against Baijiadi over a sales contractdispute involving an amount of RMB72.4635 million. The court was requested to a) order the defendant to payRMB72.4635 million, along with the interest calculated at the LPR published by the National InterbankFunding Center from 16 September 2020 to the date when the payment is made in full; and b) order thedefendant to bear all litigation and appraisal fees. On 22 July 2023, the People's Court of Linzhang County helda hearing on the case, and on 26 March 2024, the People's Court of Linzhang County dismissed Yongbufenli'sclaims in a judgment. In April 2024, Yongbufenli filed an appeal for a second trial with the IntermediatePeople's Court of Handan. The second trial was held on 12 June 2024 and the judgment has not yet been made.
(3) Construction contract dispute between the Company and Xi'an Construction Engineering Group Co.,Ltd. (hereinafter referred to as “Xi'an Construction Engineering Group”), with an involved amount ofRMB21.6233 million: In April 2023, the People's Court of Cuiping District, Yibin City, made the first-instancejudgment, requiring Xi'an Construction Engineering Group to compensate the Company for various lossestotalling RMB7.5327 million. After offsetting the outstanding project payments, Xi'an Construction EngineeringGroup shall still pay the Company RMB1.7194 million. Both parties appealed against the first-instancejudgment. The second-instance court dismissed the appeal and upheld the original judgment.
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
The Company has no interim dividend plan, either in the form of cash or bonus issue.
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. On 21 August 2023, the Yibin Human Resources andSocial Security Bureau agreed to the Company's revised Corporate Annuity Plan for filing and implementation.Participants of the corporate annuity plan of the Company include: (1) Employees who have entered intolabour 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 4% 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 8%of the total annual wage paid by the Company, which shall be distributed to individual accounts of the employeesat 7% of the contribution base of the employees, while the remaining 1% 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 |
| Dividends receivable | 650,667,449.43 | 930,755,375.66 |
| Other receivables | 5,759,785,103.00 | 5,555,194,330.26 |
| Total | 6,410,452,552.43 | 6,485,949,705.92 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
| Item (or investee) | Closing balance | Opening balance |
| Dividends receivable from subsidiaries | 650,667,449.43 | 930,755,375.66 |
| Total | 650,667,449.43 | 930,755,375.66 |
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
| Nature | Closing gross amount | Opening gross amount |
| Current account | 5,758,406,567.51 | 5,553,988,496.97 |
| Security deposits | 5,000,000.00 | 5,000,000.00 |
| Cash float | 389,072.65 | 199,301.29 |
| Other advance money for others or temporary payment | 5,610.94 | 16,868.17 |
| Total | 5,763,801,251.10 | 5,559,204,666.43 |
2) Other receivables presented by aging
Unit: RMB
| Aging | Closing gross amount | Opening gross amount |
| Within 1 year (inclusive) | 302,500,707.61 | 421,132,709.48 |
| 1 to 2 years | 1,238,711,498.85 | 2,927,461,223.86 |
| 2 to 3 years | 2,117,840,016.92 | 213,939,106.11 |
| More than 3 years | 2,104,749,027.72 | 1,996,671,626.98 |
| 3 to 4 years | 182,818,067.62 | 150,484,231.55 |
| 4 to 5 years | 150,341,735.80 | 102,537,494.25 |
| More than 5 years | 1,771,589,224.30 | 1,743,649,901.18 |
| Total | 5,763,801,251.10 | 5,559,204,666.43 |
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 | ||||||||||
| Of which: | ||||||||||
| Other receivables for which allowances for doubtful accounts are established on a grouping basis | 5,763,801,251.10 | 100.00% | 4,016,148.10 | 0.07% | 5,759,785,103.00 | 5,559,204,666.43 | 100.00% | 4,010,336.17 | 0.07% | 5,555,194,330.26 |
| Of which: | ||||||||||
| Of which: External customers | 5,394,683.59 | 0.09% | 4,016,148.10 | 74.45% | 1,378,535.49 | 5,219,730.82 | 0.09% | 4,010,336.17 | 76.83% | 1,209,394.65 |
| Related parties | 5,758,406,567.51 | 99.91% | 5,758,406,567.51 | 5,553,984,935.61 | 99.91% | 5,553,984,935.61 | ||||
| Total | 5,763,801,251.10 | 4,016,148.10 | 0.07% | 5,759,785,103.00 | 5,559,204,666.43 | 100.00% | 4,010,336.17 | 0.07% | 5,555,194,330.26 |
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 | 5,394,683.59 | 4,016,148.10 | 74.45% |
| Other receivables for which allowances for doubtful accounts are established based on the related party group | 5,758,406,567.51 | ||
| Total | 5,763,801,251.10 | 4,016,148.10 | |
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 2024 | 4,010,336.17 | 4,010,336.17 | ||
| Balance as at 1 January 2024 was in the current period | ||||
| - Transferred to Stage 2 | ||||
| - Transferred to Stage 3 | ||||
| - Transferred back to Stage 2 | ||||
| - Transferred back to Stage 1 | ||||
| Established in the current period | 5,811.93 | 5,811.93 | ||
| Reversed in the current period | ||||
| Charged off in the current period | ||||
| Written off in the current period | ||||
| Other changes | ||||
| Balance as at 30 June 2024 | 4,016,148.10 | 4,016,148.10 |
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 | ||||||
| Other receivables for which allowances for | 4,010,336.17 | 5,811.93 | 4,016,148.10 | |||
| doubtful accounts are established based on the credit risk characteristic group | ||||||
| Total | 4,010,336.17 | 5,811.93 | 4,016,148.10 |
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 of total other receivables | Closing balance of allowances for doubtful accounts |
| Sichuan Yibin Wuliangye Distillery Co., Ltd. | Current account | 3,211,833,714.52 | Within 1year; 1-3 years | 55.72% | |
| Yibin Jiangjiu Liquor Co., Ltd. | Current account | 2,244,835,760.28 | 1-5 years; over 5 years | 38.95% | |
| Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | Current account | 172,530,814.66 | Within 4 years; over 5 years | 2.99% | |
| Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Current account | 129,206,278.05 | Over 5 years | 2.24% | |
| 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 | 5,763,406,567.51 | 99.99% | 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 | 11,440,444,117.59 | 11,440,444,117.59 | ||
| Investments in associates and joint ventures | 2,002,944,907.59 | 2,002,944,907.59 | 1,996,294,215.89 | 1,996,294,215.89 | ||
| Total | 13,443,389,025.18 | 13,443,389,025.18 | 13,436,738,333.48 | 13,436,738,333.48 | ||
(1) Investments in subsidiaries
Unit: RMB
| Investee | Opening balance (carrying amount) | Opening balance of impairment allowa | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balance of impairment allow | |||
| Increase in | Decrease in inv | Impairmen | Others | |||||
| nce | investment | estment | t allowance | ance | ||||
| 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. | 42,411,979.48 | 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 | 11,440,444,117.59 | 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 | Investment income 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. | 27,361,937.34 | -5,519,829.33 | 21,842,108.01 | |||||||||
| Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,958,180,619.90 | 26,114,874.16 | 13,952,640.00 | 1,970,342,854.06 | ||||||||
| Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | 10,751,658.65 | 8,286.87 | 10,759,945.52 | |||||||||
| Sub-total | 1,996,294,215.89 | 20,603,331.70 | 13,952,640.00 | 2,002,944,907.59 | ||||||||
| Total | 1,996,294,215.89 | 20,603,331.70 | 13,952,640.00 | 2,002,944,907.59 | ||||||||
3. Investment income
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Return on long-term equity investments measured using the cost method | 4,590,000.00 | |
| Return on long-term equity investments measured using the equity method | 20,603,331.70 | 17,969,787.80 |
| Total | 20,603,331.70 | 22,559,787.80 |
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 | -4,657,535.12 | |
| 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) | 163,594,119.28 | |
| Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 426,869.99 | |
| Non-operating income and expense other than the above | 6,080,605.56 | |
| Less: Income tax effects | 41,341,400.04 | |
| Non-controlling interests effects (net of tax) | 6,086,814.56 | |
| Total | 118,015,845.11 | -- |
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 | 13.70% | 4.910 | 4.910 |
| Net profit attributable to the Company’s ordinary shareholders before exceptional gains and losses | 13.62% | 4.879 | 4.879 |
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.