Wuliangye Yibin Co., Ltd.
Annual Report 2020
President Zeng Congqin (Signature)
April 28, 2021
Contents
Section I Important Notice and Interpretations ...... 3
Section II Company Profile and Main Financial Highlights ...... 5
Section III Summary of Company Business ...... 10
Section IV Discussion and Analysis of Operation ...... 11
Section V Significant Matters ...... 35
Section VI Changes in Shares and Shareholders ...... 50
Section VII Preferred Share ...... 56
Section VIII Convertible Corporate Bonds ...... 56
Section IX Directors, Supervisors, Senior Management and Employees ...... 57
Section X Corporate Governance ...... 68
Section XI Corporate Bonds ...... 73
Section XII Financial Report ...... 74
Section XIII Reference File Directory ...... 209
Section I Important Notice and Interpretations
I. The board of directors, the board of supervisors, directors, and supervisors of theCompany undertake that the content of the Annual Report is true, accurate, and complete,and contains no false record, misleading statements, or major omission, and assume jointand several legal liabilities arising therefrom.II. Zeng Congqin, the person in charge of the Company, Luo Wei, the person in chargeof the accounting work, and Luo Jun, the person in charge of the accounting institution(accountant in charge) declare and ensure: the truthfulness, accuracy, and integrity of thefinancial report in the Annual Report.III. Seven directors should be present at the board meeting auditing the Report andactually six directors attended. Director Li Shuguang was not present at the meeting due towork reasons and voted on the resolution of this meeting by means of circulation;Director-designate Jiang Lin was present at the meeting.
IV. The future plan, development strategy, and other forward-looking statementsincluded in the Report shall not constitute the Company's substantial commitment to theinvestors due to uncertainties, and we remind the investors to notice the investment risks.
V. The Company has disclosed the potential risks in the Report, and we remind theinvestors to notice the investment risks.
VI. The Company designated China Securities Journal, Shanghai Securities News,Securities Times, and CNINFO as the information-disclosure media of the Annual Report2020 of the Company and all the information of the Company shall be subject to theinformation published on the above media.
VII. The profit distribution plan reviewed and adopted at the Board Meeting of theCompany is that: Based on the total capital stock of 3,881,608,005, the Company willdistribute the dividend of RMB 25.80 in cash (tax inclusive) and 0 bonus share (tax inclusive)to all shareholders for every 10 shares and will not transfer the capital reserve to increasecapital stock.
Interpretations
Terms | refers to | Interpretations |
Company, the Company or Wuliangye | refers to | Wuliangye Yibin Co., Ltd. |
Yibin State-owned Assets Supervision and Administration Commission | refers to | State-owned Assets Supervision and Administration Commission of Yibin Municipal Government |
Wuliangye Group Company or the Group Company | refers to | Sichuan Yibin Wuliangye Group Co., Ltd. |
Push Group Company | refers to | Sichuan Yibin Push Group Co., Ltd. |
Global Group Company | refers to | Sichuan Yibin Global Group Co., Ltd. |
Anji Logistic Group Co., Ltd. | refers to | Sichuan Anji Logistic Group Co., Ltd. |
Sacred Mountain Molin Company | refers to | Sichuan Sacred Mountain Molin Group Co., Ltd. |
Finance Company | refers to | Sichuan Yibin Wuliangye Group Finance Co., Ltd. |
I&E Company | refers to | Yibin Wuliangye Group I&E Co., Ltd. |
Creart Company | refers to | Yibin Wuliangye Creart Co., Ltd. |
New Retail Company | refers to | Sichuan Wuliangye New Retail Management Co., Ltd. |
NongXiang Series Baijiu | refers to | Wuliang NongXiang Series Baijiu Yibin Co., Ltd. |
Section II Company Profile and Main Financial Highlights
I. Company information
Stock abbreviation | Wuliangye | Stock code | 000858 |
Stock exchange for listing | Shenzhen Stock Exchange | ||
Company name in Chinese | 宜宾五粮液股份有限公司 | ||
Company short name in Chinese | 五粮液 | ||
Company name in English (if any) | WULIANGYE YIBIN CO.,LTD. | ||
Company short name in English (if any) | WLY | ||
Legal representative of the Company | Zeng Congqin | ||
Registered address | No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan | ||
Zip code of the registered address | 644007 | ||
Office address | No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan | ||
Zip code of the office address | 644007 | ||
Website | http://www.wuliangye.com.cn | ||
000858-wly@sohu.com |
II. Contact person and contact information
Secretary of the board of directors | Representative for securities affairs | |
Name | Peng Zhifu | Xiao Xiangfa, Li Xinyi |
Address | No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan | No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan |
Tel | (0831) 3567000, 3566938, 3567988 | (0831) 3567000, 3566938, 3567988 |
Fax | (0831) 3555958 | (0831) 3555958 |
000858-wly@sohu.com | 000858-wly@sohu.com |
III. Information disclosure and preparation place
Name of media selected by the Company for information disclosure | China Securities Journal, Shanghai Securities News, Securities Times |
Website designated by China Securities Regulatory Commission for the Annual Report | http://www.cninfo.com.cn |
Preparation place of the Company's Annual Report | Board office |
IV. Registration changes
Organization code | 91511500MA62A0WM8P |
Changes in primary business since the Company's listing (if any) | No change during the reporting period |
Previous changes of controlling shareholders (if any) | No change during the reporting period |
V. Other relevant informationAccounting firm engaged by the Company
Name of accounting firm | Sichuan Huaxin (Group) CPA (LLP) |
Office address of the accounting firm | 28/F, South Jinmaolidu, No.18, Ximianqiao Street, Chengdu, Sichuan |
Name of signatory accountant | Li Min, Liu Jun, Ye Juan |
The sponsor institution engaged by the Company to perform the continuous supervisionresponsibility during the reporting period
√ Applicable □ Not applicable
Name of sponsor institution | Office address of sponsor institution | Name of sponsor representative | Continuous supervision period |
Guotai Junan Securities Co., Ltd. | No. 618, Shangcheng Road, China (Shanghai) Pilot Free Trade Zone | Cai Hu, Liu Qiqun | January 1, 2020-December 31, 2020 |
Financial consultant engaged by the Company to perform the continuous supervision responsibilityduring the reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial highlights
Whether the Company needs to retroactively adjust or restate the accounting data of the previousyears
□ Yes √ No
Year 2020 | Year 2019 | Increase/decrease compared with the previous year | Year 2018 | |
Operating revenue (RMB) | 57,321,059,453.15 | 50,118,105,877.14 | 14.37% | 40,030,189,599.87 |
Net profit attributable to shareholders of the listed company (RMB) | 19,954,809,594.52 | 17,402,164,190.16 | 14.67% | 13,384,246,683.60 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 19,994,943,929.15 | 17,405,930,787.45 | 14.87% | 13,398,843,689.90 |
Net cash flows from operating | 14,698,327,593.21 | 23,112,072,040.66 | -36.40% (Note 1) | 12,317,359,034.90 |
activities (RMB) | ||||
Basic earnings per share (RMB/share) | 5.141 | 4.483 | 14.68% | 3.474 |
Diluted earnings per share (RMB/share) | 5.141 | 4.483 | 14.68% | 3.474 |
Weighted average return on equity | 24.94% | 25.26% | Decreasing by 0.32% | 22.80% |
End of Year 2020 | End of Year 2019 | Increase/decrease at the end of the current year compared with the end of the previous year | End of Year 2018 | |
Total assets (RMB) | 113,893,139,013.72 | 106,396,972,333.66 | 7.05% | 86,094,265,733.09 |
Net assets attributable to shareholders of the listed company (RMB) | 85,705,972,645.74 | 74,290,700,662.22 | 15.37% | 63,487,270,080.56 |
Note 1: This was mainly due to the combined effect of some sales returns in the first quarter beingreflected at the end of the previous year and the increase in taxes paid.The lower of the Company's net profit before or after deduction of non-recurring profit and loss forthe last three accounting years is negative and the audit report for the latest year indicates that there isuncertainty about the Company's ability to continue as a going concern
□ Yes √ No
The lower of net profit before or after deduction of non-recurring profit and loss is negative
□ Yes √ No
VII. Differences in accounting data under domestic and foreign accounting
standards
1. Differences between the net profits and net assets in financial report disclosed under the
International Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the InternationalAccounting Standards and Chinese Accounting Standards.
2. Differences between the net profits and net assets in financial report disclosed under the
Foreign Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the ForeignAccounting Standards and Chinese Accounting Standards.
VIII. Quarterly key financial highlights
Unit: RMB Yuan
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
Operating revenue | 20,238,226,408.60 | 10,529,299,579.80 | 11,725,241,211.51 | 14,828,292,253.24 |
Net profit attributable to shareholders of the listed company | 7,704,289,543.99 | 3,151,102,423.87 | 3,690,062,707.02 | 5,409,354,919.64 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 7,728,228,541.40 | 3,134,775,831.86 | 3,720,117,673.87 | 5,411,821,882.02 |
Net cash flows from operating activities | -1,201,790,976.97 | 2,369,923,680.96 | 2,775,338,930.99 | 10,754,855,958.23 |
Whether there are significant differences between the above-mentioned financial index or the totalnumber and the relevant financial index disclosed in the Company’s quarterly report and semi-annualreport
□ Yes √ No
IX. Items and amounts of non-recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Item | Amount of Year 2020 | Amount of Year 2019 | Amount of Year 2018 | Note |
Gain or loss on disposal of non-current assets (including the write-off part of the provision for impairment of assets) | -5,064,647.92 | -1,571,612.06 | 3,428,495.17 | |
Governmental subsidy recorded in current profit/loss (except those government subsidies, which are closely related to the business of a company and enjoyed in accordance with a certain standard quota or quantity of the state) | 100,407,690.85 | 129,760,347.41 | 88,840,102.95 | |
Fund occupation fee collected from non-financial enterprises and recorded in current profit/loss | 2,602,571.31 | 15,503,633.45 | 10,373,763.35 | |
Other non-operating revenue and expenditure except for the aforementioned items | -141,782,777.02 | -135,436,782.11 | -110,025,211.13 | |
Less: Impact on income tax | -15,373,976.81 | -4,831,273.10 | -8,928,533.56 | |
Impact on minority equity (after-tax) | 11,671,148.66 | 16,853,457.08 | 16,142,690.20 | |
Total | -40,134,334.63 | -3,766,597.29 | -14,597,006.30 | -- |
Concerning the non-recurring profit/loss defined by Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and theitems defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -Non-recurring Profit/Loss, explain reasons.
□ Applicable √ Not applicable
The Company had no item to be defined as recurring profit/loss in accordance with thenon-recurring profit/loss defined and listed by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public - Non-recurring Profit/Loss.
Section III Summary of Company BusinessI. Primary business of the Company in the reporting periodThe Company is mainly engaged in liquor production and sales. According to the Guidelines for theIndustry Classification of Listed Companies (2012 Revision) issued by China Securities RegulatoryCommission, liquor industry belongs to "liquor, beverage, and refined tea manufacturing industry" (C15).The primary business of the Company had no change during the reporting period. "Wuliangye" liquor,main product of the Company, has a long history and a rich cultural heritage, and is a typicalstrong-flavor Chinese spirit of China and a well-known national brand, which has been awarded the titleof national famous liquor for many times and has been selected for the first batch of protection catalogueunder the China-EU agreement on geographical indications. The Company also develops series liquorproducts with complete categories and distinctive nuance, including Wuliang Chun (Spring), WuliangChun, Wuliang Te Qu, Jian Zhuang, to provide consumers with quality products and a full range ofservices to continuously meet people's needs for a better life.II. Major changes in main assets
1. Major changes in main assets
□ Applicable √ Not applicable
2. Main overseas assets
□ Applicable √ Not applicable
III. Analysis of core competitivenessThe Company has six unique advantages, and these constitute the traditional core-competitivenessof Wuliangye. 1) The individual lnatural, ecological environment makes Wuliangye unique; 2) The unique600-years microbiota of its ancient caves has been growing continuously since the Ming Dynasty to thepresent day; 3) The high-quality, world-famous Wuliangye is distilled with five unique grain formulas; 4) Ituses unique fermentation technologies and has a unique microbial zone within the Wuliangye Ten-MileLiquor City, a complete, systematic and unique fermentation technique that has been handed down,scientifically summarised and carefully refined over a thousand years; 5) The unique, harmonious qualityof Wuliangye makes it a typical representative of Chinese culture; and 6) The scale of the unique“Ten-Mile Liquor City” enables Wuliangye’s brand value to top the liquor industry.In 2020, the Company took various simultaneous measures to actively strengthen the brand culture,deepen digital transformation, optimize product portfolio, and construct a quality, product lifecyclemanagement system. In doing so, it continued to improve its production support, quality assurance,brand influence, product competitiveness, channel control and marketing services. With the corecompetitiveness continued to be enhanced, Wuliangye’sleading position of China's strong-flavour Baijiuwas further solidified.
Section IV Discussion and Analysis of OperationI. Overview
(I) General overviewIt is an extraordinary year in 2020. In the face of the severe market environment, Wuliangye, underthe strong leadership of the provincial party committee, provincial government and municipal partycommittee and municipal government, grasped the prevention and control of the pandemic on the onehand and grasped resumed work and production on the other hand, unswervingly focused on thedevelopment goal for the whole year, and continued to implement the work principle of "Making the bestof the both worlds, and upgrading new momentum" with tenacious struggle, high-spirited upwardmomentum of development to realize the double victories of pandemic prevention and control andenterprise development, and successfully ending the 13th five-year Plan.
1. Continue to improve the quality liquor rate, and steadily improve the support ofproduction.During the reporting period, the total output of first-tier liquor exceeded the annual target, the outputof first-tier liquor in the largest workshop reached a record high, and the output of super-grade liquorreached a new high, which laid a solid foundation for the Company to achieve sustainable development.
2. Continuously strengthen the quality engineering, and significantly enhance the qualityguarantee ability.
The Company actively implemented the national rural revitalization strategy, created a Wuliangyespecial grain base, ensured high quality and stable supply of raw grain, promoted farmers' income so asto both feed back the local agricultural economy and provide guarantee for liquor quality from the source.At present, a special grain base of 1 million mu for distilling has been built, with 100% traceability of rawgrain. In 2020, combined with the digital transformation, the Company started the product quality fulllifecycle traceability project, realized the traceability of the whole industry chain of raw materialprocurement, storage, production, packaging and circulation, and effectively constructed the preventivequality control mode of from seed to liquor throughout the process. The Company continuouslypromoted liquor innovation, and the quality of Classic Wuliangye and the eighth generation Wuliangyewas highly recognized by the market.
The construction of major projects progressed smoothly. The phase I of the 300,000-ton pottery jaraging spirit room has been completed and put into production, with an additional storage capacity of80,000 tons of raw liquor. Main building construction of the liquor packaging and integrated smartstorage-and-delivery project, the technological innovation project for storing blended liquor, and brewingspecial grain process bin & milling automation renovation project under construction have all been
completed; The liquor body design center, the enterprise technology center and the planning andrenovation project in front of the plant have been launched in an all-round way.
3. Vigorously promote cultural construction, and make brand influence more powerfulDuring the reporting period, the Company vigorously promoted the cultural construction focusing onbrand strategy. The product portfolio of Wuliangye main brand and series liquor has been furtherimproved, the Wuliangye Cultural Research Institute and the Cultural Research and CommunicationCenter have been set up, the national "Compass Plan" Archaeological Wuliangye project has beenimplemented, and the construction of the experience base of "China Vintage Liquor Hall" has beenlaunched in the highland market and key market. It strengthened brand communication through keyprojects and major events, and actively promoted the Company internationally. All these activitiesstrengthened Wuliangye’s brand reputation, lifting the brand value and influence continuously.
4. Speed up the reform of marketing organization, and the reform measures have beenfruitful.
After the outbreak of COVID-19, the Company promoted the policy of "New products make up forlosses from old products, group purchase makes up for retailling loss, online business makes up foroffline loss". With channel structure further optimized, the Company has established three major channelsystems including traditional channel, group purchase and innovative channel. The official eeStore,Wuliangye cloud store and digital liquor license platform have been put into operation, and the marketshows a high-quality development trend.
Firstly, continue to improve the brand system, and further enhance the competitiveness ofproducts. The supply-side structural reform has been continuously deepened, and the ClassicWuliangye has been officially launched; The development of high-end cultural liquor, commemorativeliquor and personalized customized products is progressing smoothly; The Company has launched aseries of new liquor products such as Jian Zhuang, Wuliang Chun, Wuliang Te Qu in an orderly manner,while insisting on optimizing product structure, and a total of 12 brands have been streamlined in 2020.
Secondly, continue to optimize channel construction and further enhance channelmanagement and control. The phase I of marketing digitization project has been almost completed, thewhole process of marketing data has been visualized, and the marketing data has effectively improveddecision-making. Continue to optimize the traditional channel structure and further purify the distributorteam of Wuliangye. NongXiang Series Baijiu Company actively established base markets and modelmarkets for Jianzhuang, Wuliang Chun and Wuliang Te Qu.
Thirdly, continue to strengthen organizational security and further improve the ability ofmarketing services. Throughout the year, the Company carried out more than 10,000 high-endbanquets with dealers to cultivate a consumer atmosphere in the market and effectively helped dealersand terminals to achieve high-quality dynamic sales. The Company officially launched the Wuliangyecloud store, started the "Cloud Service", effectively helped exclusive stores in the context of COVID-19
to expand online sales opportunities, carried out digital group purchase, and implemented accuratemember marketing.
5. Vigorously strengthen enterprises with science and technology, and lead high-qualitydevelopment by scientific researchThe Company insisted on taking innovation as the first driving force to lead development, strived toenhance the enterprise's technological innovation capability, improved the efficiency of the innovationsystem, constantly advanced the Company's scientific and technological innovation capability andtechnology brand strength, and promoted the Company's strong science and technology to a new level.During the reporting period, in addition to improving the National Enterprise Technology Center,Postdoctoral Workstation, National Liquor Quality Supervision and Inspection Center and EnterpriseAcademician Workstation, the Company built the only national-level international joint research centeron liquor quality and safety in the domestic food fermentation industry. The Company won 8 scientificand technological progress awards from industry associations and 3 scientific and technologicalprogress awards at the provincial level. Among them, the technology of "interactive transmissionmechanism and application of key microflora and flavor components in multi-grain strong-flavor liquordistiling" reached the international leading level. A major breakthrough has been made in the productionof the liquor-making intelligent experimental base.(II) Brand operation
1. Wuliangye products
During the reporting period, the Company continued to optimize and improve the product system ofWuliangye in accordance with the principle of "three characteristics and one recognition", and formed aproduct system mainly consisting of Wuliangye 501, Classic Wuliangye, the eighth generationWuliangye, Wuliangye 1618 and low-aclcohol Wuliangye.
In September 2020, the Company launched a strategic high-end product "Classic Wuliangye" tocatch up with the new trend of consumption upgrading, further enrich the category of high-end liquor andmeet the needs of consumers for a better life. The Company successively held new product releases inShanghai, Chengdu and Guangzhou, met with consumers with a positive attitude, and combined withthe Imperial Palace culture IP to increase its exposure as well as focusing on key markets and lockinghigh-end consumption and other aspects to continue to promote the Classic Wuliangye and consumercultivation work, and the Company received wide attention and recognition by consumers.
2. Series liquor products
Series liquor products continued to adhere to the three focus principles of "strengthening nationalstrategic brands, expanding regional key brands, and optimizing total distribution brands", focusing oncreating four national items, namely, Wuliang Chun (Spring), Wuliang Chun, Wuliang Te Qu, and JianZhuang, to strengthen product dynamic sales and vigorously promote brand upgrading.
In 2020, it comprehensively completed the upgrading and launch of major brands such as Jian
Zhuang, Wuliang Chun and Wuliang Te Qu, and successfully implemented the key market building andterminal classification construction of the above brands, re-defined the development postioning of eachbrand and defined the price range, further solidified the foundation of brand development, and achievedgood results.(III) Major sales model of the CompanyDistribution model: This includes the traditional channel operator model, specialty shop model, KAmarketplace, etc., mainly sold offline.Direct sales model: This includes group purchase sales model, where products are sold directly togroup consumers, and online sales model, where products are sold through e-commerce platforms suchas Tmall andJD.(IV) Distribution models
√ Applicable □ Not applicable
1. Operating revenue, operating costs and gross profit for different models and products
Unit: RMB Yuan
Item | Operating revenue | Operating cost | Gross profit margin | Year-on- year increase/decrease in operating revenue | Year-on-year increase/ decrease in operating cost | Year-on- year increase/decrease in gross profit margin |
Sales model | ||||||
Liquor products | 52,434,071,866.48 | 10,342,416,169.52 | 80.28% | 13.24% | 11.40% | 0.33% |
Including: Distribution model | 45,379,752,892.82 | 9,258,969,334.00 | 79.60% | 4.65% | 6.04% | -0.26% |
Direct sales model | 7,054,318,973.66 | 1,083,446,835.52 | 84.64% | 140.15% | 96.15% | 3.44% |
Product categories | ||||||
Liquor products | 52,434,071,866.48 | 10,342,416,169.52 | 80.28% | 13.24% | 11.40% | 0.33% |
Including: Wuliangye products | 44,060,628,351.09 | 6,631,626,495.10 | 84.95% | 13.92% | 12.28% | 0.22% |
Series liquor products | 8,373,443,515.39 | 3,710,789,674.42 | 55.68% | 9.81% | 9.86% | -0.02% |
2. Number of distributors
Region | Number of distributors | Year-on-year increase/decrease | Reason for change (more than 30%) |
Eastern Region | 526 | 1% | Not applicable |
Southern Region | 400 | 1% | |
Western Region | 380 | -1% | |
Northern Region | 262 | 0% | |
Central Region | 393 | -3% |
3. Shops sales terminals account for more than 10%
□ Applicable √ Not applicable
4. Online direct sales
√ Applicable □ Not applicable
Product categories | Platform name |
Wuliangye products: | |
Eighth generation Wuliangye | Official Tmall, JD and WeChat marketplaces |
Series liquor products: | |
Wuliang Chun (Spring), Wuliang Chun, Wuliang Te Qu, and Jian Zhuang | Official Tmall, JD and WeChat marketplaces |
Major products accounting for more than 10% of total operating revenue for the current period with achange in selling price of more than 30% from the previous reporting period
□ Applicable √ Not applicable
(V) Procurement model and procurement content
Unit: RMB Yuan
Procurement model | Procurement content | Amount for major procurement content |
Market-based procurement | Raw materials and auxiliary materials etc. | 7,236,328,806.72 |
Market-based procurement | Packing materials | 1,315,862,051.14 |
Market-based procurement | Energy | 462,958,013.08 |
Procurement of raw materials from cooperatives or farmers accounting for more than 30% of thetotal procurement amount
□ Applicable √ Not applicable
Year-on-year change of more than 30% in prices of major purchased raw materials
□ Applicable √ Not applicable
(VI) Main production models
The Company’s liquor products are all produced by itself.
Processing and production outsourced
□ Applicable √ Not applicable
(VII) Production output and inventory
1. Production output, sales and inventory of major products
Products | Production output (Ton) | Sales volume (Ton) | Inventory (Ton) | |||
Amount in the current period | Year-on-year change | Amount in the current period | Year-on-year change | Amount in the current period | Year-on-year change | |
Wuliangye products | 25,952 | 0.23% | 28,139 | 5.28% | 2,733 | -44.45% |
Series liquor products | 132,879 | -6.67% | 132,304 | -4.60% | 11,486 | 5.27% |
Total | 158,831 | -5.61% | 160,443 | -3.00% | 14,219 | -10.18% |
Remarks: The statistical calibre of the above-mentioned liquors are all commercial liquors. Thedecrease in inventory of Wuliangye products is mainly due to the increase in sales volume and theincrease in the storage period of pottery jar aging liquors.
2. Finished liquor, semi-finished liquor (including base liquor)
Category | Inventory (Ton) |
Finished liquor | 14,219 |
Semi-finished liquor (including pottery jar aging liquor) | 215,473 |
3. Disclose the design production capacity, actual production capacity and production capacityunder construction of major products by production entities
Major products | Design production capacity (10,000 tons) | Actual production capacity (10,000 tons) | Production capacity under construction (10,000 tons) |
Liquors | 10.38 | 9.54 | 1.999 |
Remarks: The above production capacity figures are all based on base liquor calibre.II. Analysis of primary business
1. Overview
See "I. Overview" in "Discussion and analysis of operation".
2. Revenue and cost
(1) Operating revenue composition
Unit: RMB Yuan
Year 2020 | Year 2019 | Year-on-year increase/decrease | |||
Amount | Proportion in operating revenue | Amount | Proportion in operating revenue | ||
Total operating revenue | 57,321,059,453.15 | 100% | 50,118,105,877.14 | 100% | 14.37% |
By industry | |||||
Manufacturing industry | 57,321,059,453.15 | 100.00% | 50,118,105,877.14 | 100.00% | 14.37% |
By product | |||||
Liquors | 52,434,071,866.48 | 91.47% | 46,301,838,985.74 | 92.39% | 13.24% |
Including: Wuliangye products | 44,060,628,351.09 | 76.87% | 38,676,204,031.90 | 77.17% | 13.92% |
Series liquor products | 8,373,443,515.39 | 14.61% | 7,625,634,953.84 | 15.22% | 9.81% |
Plastic products | 2,585,059,494.52 | 4.51% | 2,540,536,361.21 | 5.07% | 1.75% |
Printing | 136,405,558.64 | 0.24% | 124,811,258.13 | 0.25% | 9.29% |
Glass bottle | 176,439,052.84 | 0.31% | 194,271,586.53 | 0.39% | -9.18% |
Others | 1,989,083,480.67 | 3.47% | 956,647,685.53 | 1.91% | 107.92% |
By region | |||||
Liquor products | 52,434,071,866.48 | 91.47% | 46,301,838,985.74 | 92.39% | 13.24% |
Including: Eastern Region | 14,186,030,946.71 | 24.75% | 10,897,821,644.19 | 21.74% | 30.17% |
Southern Region | 5,623,782,156.78 | 9.81% | 5,449,656,248.58 | 10.87% | 3.20% |
Western Region | 18,493,709,772.58 | 32.26% | 15,290,228,925.34 | 30.51% | 20.95% |
Northern Region | 5,787,446,943.40 | 10.10% | 5,924,647,357.20 | 11.82% | -2.32% |
Central Region | 8,343,102,047.01 | 14.56% | 8,739,484,810.43 | 17.44% | -4.54% |
Non-alcohol products | 4,886,987,586.67 | 8.53% | 3,816,266,891.40 | 7.61% | 28.06% |
Remarks: 1. The Company did not export alcoholic products directly, but sold them to the I&ECompany for export.
2. The Company's sales region is divided according to the customer's registered office.
(2) Industries, products or regions that account for more than 10% of the Company's operating
revenue or profit
√ Applicable □ Not applicable
Unit: RMB Yuan
Operating revenue | Operating cost | Gross profit margin | Year-on-year increase/ decrease in operating revenue | Year-on-year increase/decrease in operating cost | Year-on-year increase/decrease in gross profit margin | |
By industry | ||||||
Manufacturing industry (liquor and spirits) | 52,434,071,866.48 | 10,342,416,169.52 | 80.28% | 13.24% | 11.40% | 0.33% |
By product | ||||||
Liquors | 52,434,071,866.48 | 10,342,416,169.52 | 80.28% | 13.24% | 11.40% | 0.33% |
Including: Wuliangye products | 44,060,628,351.09 | 6,631,626,495.10 | 84.95% | 13.92% | 12.28% | 0.22% |
Series liquor products | 8,373,443,515.39 | 3,710,789,674.42 | 55.68% | 9.81% | 9.86% | -0.02% |
By region |
Liquors | 52,434,071,866.48 | 10,342,416,169.52 | 80.28% | 13.24% | 11.40% | 0.33% |
Including: Eastern Region | 14,186,030,946.71 | 2,678,440,341.16 | 81.12% | 30.17% | 40.43% | -1.38% |
Southern Region | 5,623,782,156.78 | 1,019,548,758.68 | 81.87% | 3.20% | 3.31% | -0.02% |
Western Region | 18,493,709,772.58 | 3,972,887,096.63 | 78.52% | 20.95% | 6.92% | 2.82% |
Northern Region | 5,787,446,943.40 | 1,099,621,656.33 | 81.00% | -2.32% | 0.02% | -0.44% |
Central Region | 8,343,102,047.01 | 1,571,918,316.72 | 81.16% | -4.54% | -0.17% | -0.82% |
In the case that the statistical standards for primary business data of the Company are adjustedduring the reporting period, the primary business data of the Company in recent 1 year are subject tothose after the adjustment of the statistical standards at the end of the reporting period
□ Applicable √ Not applicable
(3) Whether the Company's revenue from physical sales is greater than revenue from labors
√ Yes □ No
Industry classification | Item | Unit | Year 2020 | Year 2019 | Year-on-year increase/decrease |
Liquors | Sales volume | Ton | 160,443 | 165,411 | -3.00% |
Production | Ton | 158,831 | 168,272 | -5.61% | |
Inventory | Ton | 14,219 | 15,831 | -10.18% |
Remarks: The above statistics standard for liquors are all for commercial liquors.
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable
(4) Performance of major sales contracts signed by the Company up to the reporting period
□ Applicable √ Not applicable
(5) Operating cost composition
Unit: RMB Yuan
Industry classification | Item | Year 2020 | Year 2019 | Year-on-year increase/decrease in proportion | ||
Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
Manufacturing industry | Raw materials | 8,280,192,175.78 | 55.90% | 6,409,107,723.74 | 50.06% | 5.84% |
Salary | 4,328,398,411.77 | 29.22% | 4,228,023,628.65 | 33.03% | -3.81% | |
Energy | 796,325,741.28 | 5.38% | 957,955,244.56 | 7.48% | -2.10% | |
Manufacturing expenses | 1,407,045,149.82 | 9.50% | 1,207,173,350.39 | 9.43% | 0.07% |
(6) Whether the consolidation scope changes in the reporting period
√ Yes □ No
On April 15, 2020, the Company and Wuliangye Group Company, as reviewed and approved by the
72nd meeting of the fifth board of directors of the Company, jointly funded and established "SichuanWuliangye New Retail Management Co., Ltd.", of which the registered capital was RMB 100 million. TheCompany contributed RMB 90 million, taking up 90% of the registered capital; Wuliangye Groupcontributed RMB 10 million, taking up 10% of the registered capital; and Sichuan Wuliangye New RetailManagement Co., Ltd. is included in the consolidation scope of the Company since its establishment.
(7) Major changes or adjustments of business, products or services of the Company during thereporting period
□ Applicable √ Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
Total sales amount of top five customers (RMB) | 10,358,495,336.11 |
Proportion of total annual sales of top five customers in total annual sales | 18.07% |
Proportion of related parties in total annual sales among the top five customers | 0.00% |
Total accounts receivable at the end of the period from top five customers | 0.00 |
Main settlement methods and distribution methods of the top five customers | Mainly a distribution model, with a "payment before delivery" settlement method |
Top 5 customers of the Company
No. | Customer name | Sales amount (RMB) | Proportion in total annual sales |
1 | No.1 | 3,097,384,069.43 | 5.40% |
2 | No.2 | 2,522,073,333.60 | 4.40% |
3 | No.3 | 2,154,212,287.26 | 3.76% |
4 | No.4 | 1,420,206,982.60 | 2.48% |
5 | No.5 | 1,164,618,663.22 | 2.03% |
Total | 10,358,495,336.11 | 18.07% |
Other information of major customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from top five suppliers (RMB) | 2,124,927,323.43 |
Proportion in total annual purchase amount for top five suppliers | 21.78% |
Proportion of the purchase from related parties in total annual purchase amount among the top five customers | 13.10% |
Top 5 suppliers of the Company
No. | Supplier name | Purchase amount (RMB) | Proportion in total annual purchase amount |
1 | No.1 | 534,305,032.99 | 5.48% |
2 | No.2 | 503,334,021.23 | 5.16% |
3 | No.3 | 385,693,902.73 | 3.95% |
4 | No.4 | 358,122,720.89 | 3.67% |
5 | No.5 | 343,471,645.59 | 3.52% |
Total | 2,124,927,323.43 | 21.78% |
Other information of major suppliers
□ Applicable √ Not applicable
3. Expense
Unit: RMB Yuan
Item | Year 2020 | Year 2019 | Year-on-year increase/decrease | Note on major changes |
Selling expenses | 5,578,918,523.98 | 4,985,579,336.77 | 11.90% | |
Administrative expenses | 2,609,529,686.09 | 2,655,347,148.09 | -1.73% | |
Financial expenses | -1,485,519,200.21 | -1,430,745,865.74 | Not applicable | |
Research and development expense | 131,315,225.33 | 126,360,421.11 | 3.92% |
(1) Specific composition of selling expenses
Unit: RMB Yuan
Item | Year 2020 | Year 2019 | Year-on-year change | Reasons for change | ||
Amount | Proportion in selling expenses | Amount | Proportion in selling expenses | |||
Image publicity expense | 1,148,203,672.92 | 20.58% | 987,687,876.55 | 19.81% | 16.25% | |
Sales promotional expense | 3,302,764,255.56 | 59.20% | 3,008,319,662.93 | 60.34% | 9.79% | |
Storage and logistics expenses | 260,214,712.62 | 4.66% | 350,991,941.23 | 7.04% | -25.86% | Note 1: |
Expenses of labour | 470,739,623.11 | 8.44% | 331,708,441.32 | 6.65% | 41.91% | Note 2: |
Other expenses | 396,996,259.77 | 7.12% | 306,871,414.74 | 6.16% | 29.37% | |
Total | 5,578,918,523.98 | 4,985,579,336.77 | 11.90% |
Note 1: In accordance with the new revenue standard, transportation costs directly related to theexecution of contracts were transferred from "selling expenses" to "operating costs" in the current period.Note 2: This was mainly due to the reform in the Company's marketing organization in the second
half of 2019 and the corresponding increase in investment in new sales staff.
(2) Advertising expenses
In 2020, the Company's advertising methods mainly included TV, radio, internet, outdoor advertisingand exhibitions, with RMB 128 million for online advertising, RMB 483 million for offline advertising andRMB 537 million for TV advertising.
4. Research and development investment
√ Applicable □ Not applicable
(1) Purpose of the R&D project
In 2020, as an established research direction, the Company continued its R&D work. It researchedthe application of solid, fermented microorganisms to Chinese spirits, carried out risk assessment intoliquor as a consumable, and researched the application of intelligent brewing technologies. It alsoresearched the technologies for liquor analysis, brewing technologies and developing new products. Itdid this to provide support at the supply side.
(2) Progress, planned objective, and impact on future development of the Company
---On July 16, 2020, the project "Analysis of microbial structure and metabolic characteristics ofsolid fermentation grains of single-grain and multiple-grains strong-flavor Chinese spirits", incollaboration with Jiangnan University, won the second prize of the Science and Technology Award ofthe China Alcoholic Drinks Association in 2019.
---On May 19, 2020, two projects, "Key Microorganisms and Flavour Components TransferMechanism and Application of Multi-Grain Strong-Flavor Chinese Spirits" and "Research and Applicationof Exogenous Food Safety Risk Assessment Method for Brewing", successfully passed theprovincial-level results evaluation and reached the "international leading and domestic leading" level,respectively.
--- The project "Application Research on Efficient Fractionation and Enhancement of Quality andEfficiency" is now working steadily and effectively after two years of applied trials. The application of highefficiency fractionators has contributed to a greater extent to the improvement of the yield and hasgenerated greater economic benefits.
Through the results obtained from the aforementioned project research, the Company plans to carryout the efficient utilisation of the resources for solid fermentation that can be applied to strong-flavorChinese spirits. It has assessed the existing resources and how they are utilized, so that it can improvethe rate of producing quality products, ensure food safety, and consolidate the Company's position as aleader in strong-flavor Chinese spirits.
Research and development investment of the Company:
Item | Year 2020 | Year 2019 | Proportion of change |
Number of research and development personnel (person) | 2,719 | 2,719 | 0.00% |
Proportion of research and | 10.51% | 10.32% | Up 0.19% |
development personnel | |||
Research and development investment (RMB) | 131,315,225.33 | 126,360,421.11 | 3.92% |
Proportion of research and development investment in operating revenue | 0.23% | 0.25% | Down 0.02% |
Capitalized amount of research and development investment (RMB) | 0 | 0 | Not applicable |
Proportion of capitalized research and development investment in research and development investment | 0.00% | 0.00% | 0.00% |
Reasons for significant changes in the proportion of total research and development investmentamount in operating revenue compared with the previous year
□ Applicable √ Not applicable
Reasons for the significant changes of research and development investment capitalization rate anddescription of its rationality
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB Yuan
Item | Year 2020 | Year 2019 | Year-on-year increase/decrease |
Sub-total of cash inflows from operating activities | 64,967,961,994.18 | 64,604,503,080.77 | 0.56% |
Sub-total of cash outflows from operating activities | 50,269,634,400.97 | 41,492,431,040.11 | 21.15% |
Net cash flows from operating activities | 14,698,327,593.21 | 23,112,072,040.66 | -36.40% (Note 1) |
Sub-total of cash inflows from investing activities | 6,438,616.16 | 92,050,811.98 | -93.01% |
Sub-total of cash outflows from investing activities | 1,728,453,964.74 | 1,708,455,125.66 | 1.17% |
Net cash flows from investing activities | -1,722,015,348.58 | -1,616,404,313.68 | 6.53% |
Sub-total of cash inflows from financing activities | 15,000,000.00 | Not applicable | |
Sub-total of cash outflows from | 9,228,223,328.76 | 7,251,646,962.56 | 27.26% |
financing activities | |||
Net cash flows from financing activities | -9,213,223,328.76 | -7,251,646,962.56 | 27.05% |
Net increase in cash and cash equivalents | 3,762,958,476.66 | 14,244,084,425.84 | -73.58% (Note 1) |
Description of main influencing factors of significant changes in relevant data on a year-on-yearbasis
√ Applicable □ Not applicable
Note 1: This was mainly due to the combined effect of some sales returns in the first quarter beingreflected at the end of the previous year and the increase in taxes paid.
Reasons for significant difference between the net cash flows from operating activities of theCompany and the net profit of the current year during the reporting period
□ Applicable √ Not applicable
III. Analysis of non-primary business
□ Applicable √ Not applicable
IV. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB Yuan
End of Year 2020 | Beginning of Year 2020 | Increase/ decrease in proportion | Note on major changes | |||
Amount | Proportion in total assets | Amount | Proportion in total assets | |||
Cash and cash equivalents | 68,209,577,022.61 | 59.89% | 63,238,825,723.79 | 59.44% | 0.45% | |
Accounts receivable | 41,496,170.35 | 0.04% | 134,449,693.03 | 0.13% | -0.09% | |
Inventory | 13,228,273,631.45 | 11.61% | 13,679,619,615.41 | 12.86% | -1.25% | |
Long-term equity investment | 1,849,977,103.30 | 1.62% | 1,021,778,731.59 | 0.96% | 0.66% | |
Fixed assets | 5,866,880,860.03 | 5.15% | 6,108,745,912.72 | 5.74% | -0.59% | |
Construction in progress | 1,482,098,184.64 | 1.30% | 812,428,248.30 | 0.76% | 0.54% |
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB Yuan
Item | Beginning amount | Profit or loss from changes in fair value in current period | Accumulated changes in fair value reckoned into equities | Impairment provided in current period | Purchase amount in current period | Amount of sales in current period | Other changes | Ending amount |
Financial assets | ||||||||
1. Trading financial assets (excluding derivative financial assets) | 1,200,000.00 | 1,200,000.00 | ||||||
2. Derivative financial assets | ||||||||
3. Other debt investments | ||||||||
4. Other equity instrument investment | ||||||||
5. Accounts receivable financing | 3,450,166,659.06 | -1,425,724,642.34 | 2,024,442,016.72 | |||||
Sub-total of financial assets | 3,451,366,659.06 | -1,425,724,642.34 | 2,025,642,016.72 | |||||
Investment properties |
Productive biological assets | ||||||||
Others | ||||||||
Sum of the above items | 3,451,366,659.06 | -1,425,724,642.34 | 2,025,642,016.72 | |||||
Financial liabilities |
Is there any significant change in measurement attributes of main assets of the Company in the reporting period?
□ Yes √ No
3. Limitation on the assets and rights as of the end of the reporting period
√ Applicable □ Not applicable
Unit: RMB Yuan
Item | Ending book value | Reasons for limitation |
Cash and cash equivalents | 329,069,085.01 | Deposit of bank acceptance bill of RMB 328,818,561.81 and other deposits of RMB 250,523.20. |
Accounts receivable financing | 52,470,000.00 | Pledge of bank acceptance bill |
Total | 381,539,085.01 |
V. Situation of investment
1. General situation
√ Applicable □ Not applicable
Amount invested in the reporting period (RMB) | Amount invested in the same period of the previous year (RMB) | Range of change |
734,693,877.55 | 9,800,000.00 | 7396.88% |
Remarks: This investment is an equity investment and is mainly due to the capital increase in theFinance Company during the reporting period.
2. The significant equity investment obtained during the reporting period
□ Applicable √ Not applicable
3. The significant non-equity investment being carried out during the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Note on securities investment
□ Applicable √ Not applicable
The Company had no securities investment during the reporting period.
(2) Note on derivative investment
□ Applicable √ Not applicable
The Company had no derivative investment during the reporting period.
5. Use of funds raised
√ Applicable □ Not applicable
(1) Overall use of funds raised
√ Applicable □ Not applicable
Unit: RMB '0,000
Year of raising | Raising method | Total funds raised | Funds raised used in current period | Total funds raised used | Total funds raised of which the purpose has been changed during the reporting period | Total funds raised of which the purpose has been changed | Proportion of the total funds raised of which the purpose has been changed | Total funds raised which have not been used | Purpose and allocation of funds raised which have not been used | Funds raised which has been idle for more than two years |
Year 2018 | Non-public offering of shares | 185,327.74 | 36,612.2 | 52,218.01 | 169,405.51 | 169,405.51 | 91.41% | 133,109.73 |
Total | -- | 185,327.74 | 36,612.2 | 52,218.01 | 169,405.51 | 169,405.51 | 91.41% | 133,109.73 | -- | |
Description of overall use of funds raised | ||||||||||
During the reporting period, the Company actually paid RMB 2.2443 million for the information construction project; RMB 0 million for the marketing center construction project; and RMB 21.925 million for the service-oriented E-commerce platform project, RMB 156.3103 million for the liquor packaging and integrated smart storage-and-delivery project; and RMB 185.6424 million for the technological innovation project for storing blended liquor. |
(2) Projects promised to be invested with funds raised
√ Applicable □ Not applicable
Unit: RMB '0,000
Committed investment projects and allocation of over-raised funds | Whether the project has been changed (including partial change) | Total amount of committed investment of the funds raised | Total investment amount after adjustment (1) | Investment in the reporting period | Accumulated investment as of the end of the period (2) | Investment progress as of the end of the period (3)= (2)/(1) | Date on which the project reaches the expected usable condition | Income realized in the reporting period | Whether reach the expected income | Is there any significant change in feasibility of the project |
Committed investment projects | ||||||||||
Information construction | Yes | 71,530 | 5,644.64 | 224.43 | 5,644.64 | 100.00% | Not applicable | Not applicable | Not applicable | No |
Construction of marketing center | Yes | 50,793 | 3,944.06 | 0 | 3,944.06 | 100.00% | Not applicable | Not applicable | Not applicable | No |
Service- oriented E-commerce platform | Yes | 63,074 | 8,434.04 | 2,192.5 | 8,434.04 | 100.00% | Not applicable | Not applicable | Not applicable | No |
The liquor packaging and integrated smart storage-and-delivery | No | 0 | 94,422.74 | 15,631.03 | 15,631.03 | 16.55% | Expected in December 2023 | Not applicable | Not applicable | No |
The technological innovation project for storing blended liquor | No | 0 | 74,982.77 | 18,564.24 | 18,564.24 | 24.76% | Expected in December 2022 | Not applicable | Not applicable | No |
Sub-total of committed investment projects | -- | 185,397 | 187,428.25 | 36,612.2 | 52,218.01 | -- | -- | -- | -- | |
Allocation of over-raised funds | ||||||||||
Total | -- | 185,397 | 187,428.25 | 36,612.2 | 52,218.01 | -- | -- | -- | -- | |
Note on and reason for not reaching the scheduled progress or expected income (based on specific projects) | Not applicable | |||||||||
Description of any significant change in feasibility of the project | Not applicable | |||||||||
Amount, purpose, and application progress of over-raised funds | Not applicable | |||||||||
Change of implementation place of investment projects with the funds raised | Not applicable | |||||||||
Adjustment of means of implementation of investment projects with the funds raised | Not applicable | |||||||||
Early investment and replacement of investment projects with the funds raised | Not applicable | |||||||||
Note on making up working capital temporarily with idle funds raised | Not applicable | |||||||||
Amount and cause of balance of funds raised after implementation of | Not applicable |
the project |
Purpose and allocation of funds raised which have not been used |
Problems or other information about application and disclosure of the funds raised | Refer to the special report on deposit of funds raised and actual use |
(3) Changes of projects with the funds raised
√ Applicable □ Not applicable
Unit: RMB '0,000
Project after change | Corresponding original projects promised | Total funds raised to be invested in the changed project (1) | Actual amount invested during the reporting period | Actual accumulated investment as of the end of the period (2) | Investment progress as of the end of the period (3)= (2)/(1) | Date on which the project reaches the expected usable condition | Income realized in the reporting period | Whether reach the expected income | Is there any significant change in feasibility of the changed project |
The liquor packaging and integrated smart storage-and-delivery | Information construction, construction of marketing center, service-oriented E-commerce platform | 94,422.74 | 15,631.03 | 15,631.03 | 16.55% | Expected in December 2023 | Not applicable | Not applicable | No |
The technological innovation project for storing blended liquor | 74,982.77 | 18,564.24 | 18,564.24 | 24.76% | Expected in December 2022 | Not applicable | Not applicable | No | |
Total | -- | 169,405.51 | 34,195.27 | 34,195.27 | -- | -- | -- | -- | |
Statement of reasons for change, decision-making procedures and disclosure of information (by project) | At the 73rd meeting of the 5th board of directors of the Company and the annual general meeting of 2019 held on April, 24 2020 and May, 29 2020 reviewed and approved the Proposal for Change the Use of Funds Raised from Non-public Offering and the Subject of Implementation, agreeing to change the use of funds raised; the subject of implementation of the project was changed from Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. to Sichuan Yibin Wuliangye Winery Co., Ltd. For details, please refer to the Announcement of Resolutions of the 73rd Meeting of the 5th Board of Directors, Announcement of Resolutions of the Annual General Meeting of 2019 and Announcement on the Signing of the Non-public Offering <Supervision Agreement for the Funds Raised in a Special Account by Four Parties> of the Company. | ||||||||
Note on and reason for not reaching the scheduled progress or expected income (based on specific projects) | Not applicable | ||||||||
Description of any significant change in feasibility of the project after change | Not applicable |
VI. Sales of significant assets and equities
1. Sales of significant assets
□ Applicable √ Not applicable
The Company did not sell significant assets during the reporting period.
2. Sales of significant equities
□ Applicable √ Not applicable
VII. Analysis of main holding and JV companies
√ Applicable □ Not applicable
Main subsidiaries and JV companies that affect the net profits of the Company by more than 10%
Unit: RMB Yuan
Company name | Company type | Primary business | Registered capital | Total assets | Net assets |
Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Liquor sales, liquor import and export business and agency | 200,000,000.00 | 39,066,651,213.16 | 24,171,031,611.19 |
Company name | Company type | Primary business | Operating revenue | Operating profit | Net profit |
Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Liquor sales, liquor import and export business and agency | 50,993,911,050.55 | 22,754,233,531.30 | 17,066,813,026.81 |
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Company name | Means of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production, operation and performance |
Sichuan Wuliangye New Retail Management Co., Ltd. | Establishment | The New Retail Company is committed to building a "Vertical Ecological Empowerment Platform" that integrates a brand promotion platform, a product sales platform, a consumer interaction platform and an online market management platform, and is also an advantageous pattern for the Company to rely on new technology applications such as big data to lay out the future, continuously meet the growing consumer demand, actively integrate into the economy of the times and improve the new intelligent retail system to complement and develop synergistically with traditional channels. |
VIII. Structured entities controlled by the Company
□ Applicable √ Not applicable
IX. Prospect of future development of the Company
(I) Industry landscape and trendIn 2021, the downward pressure of domestic economy further increases due to many uncertaintiesregarding changes of COVID-19 and the external environment, but the fundamentals and basic trend ofsteady long-term economic growth in China remain unchanged. The production capacity of the liquorindustry is still in excessive and the competition pattern of extruded growth will exist in long term. Theliquor industry is still in the long cycle of a new round of growth characterized by structural prosperity, inwhich high-end liquor will continue to lead the structural growth of the industry and the industry will befurther concentrated on superior brands, superior enterprises and superior producing areas.(II) Development strategy of the CompanyStrategic vision of the Company: The Company is dedicated to keeping it evergreen and strives tobuild a green, creative, and leading first-class enterprise in the world and realize high-quality,sustainable development.(III) Completion of the business plan 2020
1. Planning at the beginning of the year: Double-digit growth for the total operating revenue in2020.
2. Actual completion: In 2020, the Company's operating revenue reached RMB 57.321 billion, withyear-on-year growth of 14.37%.
(IV) Development goals for 2021
The year 2021 is the start of building a great modern socialist country, the opening year of the 14thFive-Year Plan, and a key year for Wuliangye Group's innovative development, transformation andleapfrogging development. Under Xi Jinping’s guiding principle of “socialism with Chinesecharacteristics”, the Company will, fully implement a series of important instructions that were outlinedfor Sichuan at the fifth plenary session of 19th National Congress of the Communist Party of China andadhere to the general principle of seeking progress while keeping performance stable, be based on thenew development stage, implement the new development concept, integrate into the new developmentpattern, aim to meet the new demand of consumer upgrade, take the vision of building a green,innovative and leading first-class enterprise, lead the supply-side structural reform with processinnovation and liquor body innovation as the core, and comprehensively promote Wuliangye Group'sgreater innovative development, transformation and leaping development.
The Company's business objective for 2021: The Company strives to achieve double-digit growthfor the total operating revenue and will continue to maintain the average advanced development rate of
the industry's backbone enterprises to ensure that the development of the enterprise runs in areasonable range of sound and sustainable growth.Focus on four areas of work: 1) making every effort to promote high-quality development; 2)making every effort to promote comprehensive deepening reform; 3) making every effort to implementthe innovation-driven strategy; and 4) making every effort to grasp the construction of major projects.
(V) Potential risks
1) macroeconomic uncertainties; 2) further intensification of competition in the industry; and 3) therisk of intellectual property protection for well-known brands.X. Reception, research, communication, interview and other activities
1. Registration form of reception, research, communication, interview and other activitiesduring the reporting period
√ Applicable □ Not applicable
Date of reception | Reception location | Way of reception | Type of interviewees | Interviewees | Main contents discussed and information provided | Basic information index of the survey |
January 13-14, 2020 | Shanghai | Securities trader Strategy meeting | Institution | Sumitomo Mitsui Trust, Sculptor Capital, ALPHALEX CAPITAL, Citigroup, Brilliance Capital, Fidelity Capital, etc. | Development strategy and production operation of the Company | CNINFO (http://www.cninfo.com.cn) |
March 3, 2020 | Yibin | Telephone communication | Institution | E Fund, Hwabao WP Fund, Ping An Capital Management, Yinhua Fund, China Universal Asset Management, etc. | ||
March 10, 2020 | Yibin | Telephone communication | Institution | E Fund, ChinaAMC | ||
March 23, 2020 | Yibin | Telephone communication | Institution | CCB Principal Asset Management | ||
May 29, 2020 | Yibin | General Meeting | Institution | Greenwoods Asset Management, ChinaAMC, Huachuang Securities, China Merchants Securities, etc. | ||
June 22-24, 2020 | Yibin | Telephone communication | Institution | Foreign institutional investors, Wells Fargo Funds Management, Taikang, etc. | ||
July 2, 2020 | Yibin | Telephone communication | Institution | Essence Securities, China Life Asset Management Company Limited, E Fund, Guangdong Development Fund, China Merchants Fund, China Universal Asset Management, etc. | ||
July 7-9, 2020 | Yibin | Telephone communication | Institution | CLSA, JPM, Lone Pine, China Securities Cooperation, Zhong Ou | Development planning of |
Asset Management, Great Wall Fund, Baoying Fund, Taikang, Northeast Securities, HSBC Qianhai, ChinaAMC, China Universal Asset Management, etc. | the Company | CNINFO (http://www.cninfo.com.cn) |
July 23, 2020 | Yibin | Telephone communication | Institution | Zheshang Securities, China Merchants Fund, Yinhua Fund, China Universal Asset Management, China Southern Fund Management, etc. | |
August 31, 2020 | Yibin | Field survey | Institution | Huaxi Securities, Dongxing Securities, Sealand Securities, Gelin Fund, DAPU Asset Management, etc. | Half-yearly report for 2020 and the future plans of the Company |
September 2-3, 2020 | Shanghai | Strategy Meeting for Securities Traders | Institution | E Fund, China Everwin Asset, AEGON-INDUSTRIAL Fund, Ping An Asset Management, ABC-CA Fund Management, Taiping Asset Management, GUOTAI AMC, etc. | |
September 4, 2020 | Nanjing | Strategy Meeting for Securities Traders | Institution | ICBC Credit Suisse, Bosera Funds, Caitong Fund, Sealand Securities, etc. | |
September 8-11, 2020 | Shanghai | Strategy Meeting for Securities Traders | Institution | Greenwoods Asset Management, ABC-CA Fund Management, pinpoint, Greencourt, etc. | |
September 16, 2020 | Yibin | Field survey | Institution | Sunshine Asset Management, Temasek, OHIM, StarRock Investment Management, Perseverance Asset Management, Ping An Asset, etc. | |
September 17, 2020 | Shanghai | Strategy Meeting for Securities Traders | Institution | Ping An Asset Management, Yinhua Fund, Bosera Funds, Great Wall Fund, etc. | |
October 31, 2020 | Hangzhou | Strategy Meeting for Securities Traders | Institution | Centennial insurance, China Merchants Fund, Sunshine Asset Management, Shicheng Asset, etc. | Third quarter report for 2020 and the future plans of the Company |
November 3, 2020 | Yibin | Field survey | Institution | Greenwoods Asset Management, Huachuang Securities, Sealand Securities | |
November 5, 2020 | Beijing | Strategy Meeting for Securities Traders | Institution | Yinhua Fund, Penghua Fund, Avic Fund, Great Wall Fund, China Post Fund, CCB Principal Asset Management, Royal Investment Management, ICBC Credit Suisse, Bosera Funds, Ping An-UOB Fund, etc. | |
November 11, 2020 | Beijing | Strategy Meeting for | Institution | Harvest Fund, Bosera Funds, Everbright Pramerica Fund |
Securities Traders | Management, Fudun Investment Management, Temasek, ChinaAMC, China Life Pension, OHIM, LONGRISING, Orient Fund, Guangdong Development Fund, Yinhua Fund, etc. | |||||
November 19-20, 2020 | Shenzhen | Strategy Meeting for Securities Traders | Institution | Dacheng Fund, CITIC Asset Management, China Universal Asset Management, Perseverance Asset Management, ABC-CA Fund Management, Government of Singapore Investment Corp, etc. | ||
November 19, 2020 | Haikou | Strategy Meeting for Securities Traders | Institution | China Cornerstone Capital, HAZEL INVESTMENT, Loyal Valley Capital, China Demeter Financial Investments, Guangdong Wenshi Investment, CICC Fund, etc. | ||
Reception times | 55 | |||||
Number of organizations received | 1,264 | |||||
Number of individuals received | 0 | |||||
Number of other interviewees received | 0 | |||||
Whether undisclosed important information is disclosed, revealed or divulged | No |
Section V Significant Matters
I. Common stock profit distribution and transferring capital reserve to capital
stock of the CompanyFormulation, implementation and adjustment of common stock profit distribution policy, especiallycash dividend policy, during the reporting period
√ Applicable □ Not applicable
According to the Profit Distribution Plan 2019 reviewed and adopted at the Annual General Meeting2019 of the Company, based on the total capital stock of 3,881,608,005, the Company distributed thedividend of RMB 22 in cash (tax inclusive) to all shareholders for every 10 shares. The distribution planwas expressed by the independent directors of the Company, submitted to the general meeting forapproval after reviewed by the board of directors of the Company, and had been implemented on June22, 2020.
Special notes on cash dividend policy | |
Whether it meets the requirements of the Articles of Association (AoA) or the resolutions of general meeting? | Yes |
Is the dividend distribution standard and proportion specific and clear? | Yes |
Are relevant decision-making procedures and mechanisms complete? | Yes |
Have the independent directors performed their duties and fulfilled their due roles? | Yes |
Do the minority shareholders have the chance to fully express their opinions and demands, and are their legal rights and interests fully protected? | Yes |
Are the conditions and procedures normative and transparent in case of adjustments or changes of the cash dividend policy? | Yes |
Common stock dividend distribution scheme (plan) and share capital increase from capital surplusscheme (plan) in the past 3 years (including the reporting period)
The Company's cash dividends distribution scheme in 2020: The Company distributed cashdividends of RMB 25.80 (tax inclusive) for every 10 shares and totaling RMB 10.015 billion in cash.
The Company's cash dividends distribution scheme in 2019: The Company distributed cashdividends of RMB 22 (tax inclusive) for every 10 shares and totaling RMB 8.54 billion in cash.
The Company's cash dividends distribution scheme in 2018: The Company distributed cashdividends of RMB 17 (tax inclusive) for every 10 shares and totaling RMB 6.599 billion in cash.
Common stock cash dividends of the Company in the past 3 years (including the reporting period)
Unit: RMB Yuan
Year of dividends | Cash dividends (tax inclusive) | Net profit attributable to common stockholders of the listed company in the annual consolidated statement in the year of dividends | Ratio of cash dividends to net profit attributable to common stockholders of the listed company in the consolidated statement | Cash dividends in other forms (such as share repurchase) |
Total cash dividends (including those in other forms) | Ratio of total cash dividends (including those in other forms) to net profit attributable to common stockholders of the listed company in the consolidated statement | ||||||
Year 2020 | 10,014,548,652.90 | 19,954,809,594.52 | 50.19% | 0.00 | 0.00% | 10,014,548,652.90 | 50.19% |
Year 2019 | 8,539,537,611.00 | 17,402,164,190.16 | 49.07% | 0.00 | 0.00% | 8,539,537,611.00 | 49.07% |
Year 2018 | 6,598,733,608.50 | 13,384,246,683.60 | 49.30% | 0.00 | 0.00% | 6,598,733,608.50 | 49.30% |
The Company achieved profit within the reporting period and the parent company's attributableprofit to common stockholders was positive, but no common stock cash dividend distribution plan wasproposed
□ Applicable √ Not applicable
II. Profit distribution and transferring capital reserve to capital stock during the
reporting period
√ Applicable □ Not applicable
Bonus shares per 10 shares (shares) | 0 |
Dividend per 10 shares (RMB) (tax inclusive) | 25.80 |
Increase shares per 10 shares (shares) | 0 |
Equity base of distribution plan (shares) | 3,881,608,005 |
Cash dividend (RMB) (tax inclusive) | 10,014,548,652.90 |
Cash dividend in other forms (such as share repurchase) (RMB) | 0.00 |
Total cash dividends (including those in other forms) (RMB) | 10,014,548,652.90 |
Distributable profit (RMB) | 40,220,101,761.18 |
Ratio of total cash dividends (including those in other | 100% |
forms) to total distributable profit | |
Cash dividend distribution in this period | |
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for a minimum of 40% of the profit distribution when the profit is distributed. | |
Notes on details of profit distribution plan or plan for transferring capital reserve into capital stock | |
The Company's cash dividends distribution scheme in 2020: Based on the total capital stock on the equity registration date when the Company implemented the profit distribution scheme, the Company distributed cash dividends of RMB 25.80 (tax inclusive) for every 10 shares and distributed totally RMB 10,014,548,652.90 in cash. No bonus share was distributed and no capital reserve was transferred to capital stock in current year. |
III. Performance in fulfilling commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the
Company’s actual controller(s), shareholders, related parties, acquirer(s) and othercommitment parties
√ Applicable □ Not applicable
The Company disclosed the Notice on Commitments Concerning Non-Public Offering of Shares onApril 19, 2018, which disclosed the commitments of the Company, directors, controlling shareholders,actual controller(s) and directors and officers participating the ESOP on five aspects. During thereporting period, the above-mentioned commitment makers had all strictly fulfilled the commitments.
2. In case the Company’s asset or project has profit forecast, and the reporting period is still in
forecasting period, the Company shall make a statement about the asset or project reaching
the original expectation and the reasons thereof.
□ Applicable √ Not applicable
IV. Non-operating occupation of funds of the listed companies by controllingshareholders and their related parties
□ Applicable √ Not applicable
The Company had no non-operating occupation of funds of the listed companies by controllingshareholders and their related parties during the reporting period.V. Note on the board of directors, the board of supervisors and independentdirectors (if any) on the "non-standard audit report" of the accounting firmduring the reporting period
□ Applicable √ Not applicable
VI. Note on changes in accounting policy, accounting estimates and accountingmethods compared with the financial report of the previous fiscal year
√ Applicable □ Not applicable
(1) Changes in significant accounting policy
√ Applicable □ Not applicable
Content and reason of changes in accounting policy | Approval procedures | Remarks |
On July 5, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No.14 - Revenue (CK (2017) No.22), (hereinafter referred to as the "New Revenue Standards"), requiring enterprises which were simultaneously listed abroad and at home and which were listed abroad and prepared their financial statements according to the International Financial Reporting Standards (IFRS) or the Accounting Standards for Business Enterprises (ASBE) to implement such standards since January 1, 2018; and other domestic listed companies to implement such standards since January 1, 2020. | According to the provisions for transition from the old standards to the new standards, information of the comparable period is not adjusted, and the beginning retained earnings or other comprehensive income of the reporting period will be adjusted retroactively for the difference between the new standards and the original standards on the date of initial implementation. Refer to the Note “V. Significant accounting policy and accounting estimates, 27, (3) Adjustment of relevant items in financial statements at the beginning of the implementation year as a result of initial implementation of new revenue standards” for details about impact on the Financial Statements 2019 |
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the initialimplementation year as a result of initial implementation of new revenue standards from2020
Item | Balance sheet | |||
December 31, 2019 | Reclassification | Remeasurement | January 1, 2020 | |
Accounts received in advance | 12,530,706,854.77 | -12,508,924,058.07 | 21,782,796.70 | |
Contract liability | 11,078,218,239.27 | 11,078,218,239.27 | ||
Other current liabilities | 1,430,705,818.80 | 1,430,705,818.80 |
(4) Note on comparison data before the retrospective adjustments due to initial implementationof new revenue standards from 2020
□ Applicable √ Not applicable
VII. Note on rectification of major accounting error in the reporting period whichneeds to be tracked and restated
□ Applicable √ Not applicable
The Company had no rectification of major accounting error in the reporting period which needs tobe tracked and restated during the reporting period.VIII. Note on changes in the scope of consolidated financial statements comparedwith the financial report of the previous year
√ Applicable □ Not applicable
On April 15, 2020, the Company and Wuliangye Group Company, as reviewed and approved by the72nd meeting of the fifth board of directors of the Company, jointly funded and established "SichuanWuliangye New Retail Management Co., Ltd.", of which the registered capital was RMB 100 million. TheCompany contributed RMB 90 million, taking up 90% of the registered capital; Wuliangye Groupcontributed RMB 10 million, taking up 10% of the registered capital; and Sichuan Wuliangye New RetailManagement Co., Ltd. is included in the consolidation scope of the Company since its establishment.
IX. Appointment and dismissal of accounting firms
Accounting firm currently appointed
Name of Chinese accounting firm | Sichuan Huaxin (Group) CPA (LLP) |
Remuneration of Chinese accounting firm (RMB '0,000) | 1.32 (excluding internal control and audit fee) |
Term of auditing services of Chinese accounting firm | 20 |
Name of the CPAs of Chinese accounting firm | Li Min, Liu Jun, Ye Juan |
Term of auditing services of the CPAs of Chinese accounting firm | The 5th year of Mr. Li Min, the 3rd year of Mr. Liu Jun, 1st year of Ms. Ye Juan |
Has the accounting firm been changed in current period?
□ Yes √ No
Appointment of internal control audit accounting firm, financial advisor or sponsor
√ Applicable □ Not applicable
The Company continued to appoint "Sichuan Huaxin (Group) CPA (LLP)" as the internal control andaudit organization of the Company in 2020 at the cost of RMB 600,000.X. Delisting confronted upon disclosure of the annual report
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
The Company had no bankruptcy reorganization during the reporting period.
XII. Major litigation and arbitration matters
□ Applicable √ Not applicable
The Company had no major litigation and arbitration matters during the reporting period.XIII. Punishment and rectification
□ Applicable √ Not applicable
The Company had no punishment or rectification during the reporting period.XIV. Credit conditions of the Company, its controlling shareholders and actualcontrollers
√ Applicable □ Not applicable
The Company, its controlling shareholders and actual controllers had good credit conditions duringthe reporting period.
XV. Implementation of the Company's equity incentive plan, ESOP or otheremployee incentive measures
√ Applicable □ Not applicable
The 11th meeting of the 5th board of directors of the Company held on October 30, 2015 and theannual general meeting of 2015 held on June 22, 2016 reviewed and approved the Proposal for the FirstPhase of Employee Stock Ownership Plan (ESOP) of Wuliangye Yibin Co., Ltd. (Draft) (Subscription inNon-Public Offering of Shares) and its Summary, approving the Company to implement the ESOP.The shares issued by non-public offering for the Company's ESOP were issued and listed on April20, 2018. In August, the Company held the 1st meeting of shareholders participating the ESOP and setup the management committee of the ESOP (Phase I). Participants of the ESOP included directors,supervisors, senior management, and other employees of the Company, 2,428 persons in total, andsubscribed 23,696,280 shares, taking up 0.61% of total capital stock of the Company.At the end of the reporting period, current directors, supervisors and senior management of theCompany (Li Shuguang, Zou Tao, Wu Guoping, Cao Hongying, Zhu Zhongyu, Tang Bochao, TangShengyun, Luo Wei, Zhao Dong and Peng Zhifu) participating the ESOP indirectly held 1,293,323shares through the Guotai Junan Fund Management Plan (excluding retired senior management), takingup about 1.51% of the shares issued through non-public offering. At present, the managementcommittee of the ESOP is composed of 30 persons, including 1 director and 1 deputy director. Therewas no change during the reporting period.XVI. Major related transactions
1. Related transactions related to daily operation
√ Applicable □ Not applicable
The Company signed the Financial Service Agreement and the Supplemental Agreement to theFinancial Service Agreement with the Finance Company on April 12, 2018, March 20, 2019 and April 20,2020, respectively. The main contents were deposits and loans service. Daily balance of deposits wasno more than RMB 32.9 billion in 2020 and daily balance of loans no more than RMB 5 billion in 2020.Refer to "Section XII, XI. Related parties and related transactions, 5. Related transactions (7) Otherrelated transactions" for details about related transactions between the Company and the FinanceCompany.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable √ Not applicable
The Company had no related transactions arising from the acquisition or sale of assets or equity ofthe Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable √ Not applicable
The Company had no related transactions of joint foreign investment during the reporting period.
4. Current associated rights of credit and liabilities
□ Applicable √ Not applicable
The Company had no current associated rights of credit and liabilities during the reporting period.
5. Other major related transactions
□ Applicable √ Not applicable
The Company had no other major related transactions during the reporting period.XVII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ Applicable √ Not applicable
The Company had no lease during the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
The Company had no guarantee during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
□ Applicable √ Not applicable
The Company had no entrusted financing during the reporting period.
(2) Entrusted loan
□ Applicable √ Not applicable
The Company had no entrusted loan during the reporting period.
4. Major contracts for daily operation
□ Applicable √ Not applicable
5. Other major contracts
□ Applicable √ Not applicable
The Company had no other major contracts during the reporting period.XVIII. Social responsibility
1. Fulfillment of social responsibility
Refer to the Social Responsibility Report 2020 disclosed by the Company on April 28, 2021.
2. Show social responsibility by setting poverty alleviation targets
(1) Targeted poverty alleviation
Wuliangye has always adhered to the policy of poverty alleviation through development based onthe resource endowment and different needs of the supported areas, and according to the idea of"company input, professional operation and sharing among the poor”, we run the thinking of corporategovernance through the process of help, integrate the market concept into poverty alleviation, adhere tothe guidance of party building, take industrial assistance as the core, focus on agricultural base andindustrial commercialization, and open up the supply chain and demand chain, strengthen theconstruction of the talent team for the sustainable development of the supported areas, strive to build acharacteristic assistance model of "Wuliangye + characteristic industries + village capital companies +consumer markets + peasant households", and work with the poor to draw a blueprint for a better lifeand make efforts to help the supported areas to get rid of poverty and become well-off.
(2) Annual summary on poverty alleviation targets
In 2020, Wuliangye paid close attention to the targets and tasks of poverty alleviation and investedRMB 478 million in poverty alleviation in terms of party building, infrastructure, industry, consumptionand education. By establishing the organizational structure of the trinity of "headquarters, staff officerand combat team" for poverty alleviation, Wuliangye did a good job of structure adjustment on thebattlefield of poverty alleviation, and built a targeted poverty alleviation model with the characteristics ofWuliangye, helped national-level poverty area such as Litang County of Ganzi Prefecture and PingshanCounty of Yibin City to achieve high-quality poverty alleviation.
Firstly, increase development confidence under the guidance of party building. Wuliangyeinsists on "party building leading, inclusive development". The party committee team of the Companyleads the team to go deep into the supported area regularly, in order to go to the village to carry outpairing help, strengthen confidence of masses, talk about both development and domestic trivia withmasses, and solve their practical difficulties. In Qingshanyan Village, Xingwen County, Wuliangye built aparty and mass activity center that integrates "party building propaganda", "homes of the masses" and"provincialism trees", so as to further serve the masses, gather popular feelings, and inspire drive. InLitang County, the joint party branch of Wuliangye Polar Fruit and Vegetable Lentinus edodes IndustrialBase was established, and migrant party members were divided into production and sales party groupsto give full play to the fighting bastion role of party organizations, the exemplary vanguard role of partymembers, and the leading role of leaders in getting rid of poverty and welcoming prosperity, forming aninteractive and inclusive situation in which party organizations are built in industry, party members gatherin industry, and farmers are rich in industry.
Secondly, tamp and consolidate the foundation, and resolve the difficult problems of
development. Wuliangye strives to continuously optimize the conditions of rural production and livingfacilities, improve the basic public service system, and consolidate the foundation of local economicdevelopment by virtue of the construction of road facilities, rural housing insurance and village-levelprojects. 1) support the construction of rural roads. In 2020, RMB 199 million was invested in building the"Wuliangye Rural Revitalization Industry Road" to achieve a happy ending of poverty alleviation, so as toprovide a "smooth, comfortable and beautiful" development environment for rural revitalization. 2)promote the improvement of the living environment. Donated RMB 700,000 to support Jie Ji Village inPingshan County, focusing on promoting the construction of village-level projects such as villageappearance improvement, maintenance and reinforcement projects, and supporting facilities of the"1+6" activity center; Donated RMB 1 million to help farmers' houses in Litang County participate ininsurance, and established a mechanism to protect the personal property of 10,000 farmers andherdsmen; Donated RMB 18.58 million of materials to solve the problem of transportation inconvenienceand difficulties in the deep poverty-stricken areas of Ganzi Prefecture, Liangshan Prefecture and AbaPrefecture.Thirdly, empower production and marketing and achieve vigorous development of theindustry. According to the industrial assistance principle of "taking measures according to localconditions, implementing policies according to households, and varies from person to person",Wuliangye constructs the model of "Wuliangye + characteristic industrial base + peasant household" and"Wuliangye + village collective economic organization + peasant household" to develop industries withlocal characteristics to enrich the people and realize the "multiplier effect" that serves the overallsituation of economic and social development. 1) deepen the construction of characteristic bases. InXingwen County and Litang County, Wuliangye comprehensively enhanced the demonstration andleading role of bamboo industry base and lentinus edodes industry base, drove the village collectiveeconomy to achieve sales revenue of more than RMB 18 million, and distributed dividends to themasses of more than RMB 2.1 million. 2) support the development of local industries. Donated RMB600,000 to help 3,100 farmers purchase iron farm tools, break the plight of spring ploughing of peasanthousehold in Litang County; Donated RMB 500,000 to support the construction of the cultural andtourism project in Litang County, helping the Litang cultural and tourism industry to a new level. 3)broaden the product marketing channels. By setting up Wuliangye poverty alleviation counters within theCompany, high-speed service areas and supermarket, holding trade fairs of poverty alleviation productsat the end of the year and the beginning of the year, carrying out centralized procurement in importantfestivals such as the Spring Festival and Mid-Autumn Festival, and employees' regular "purchasinginstead of donation", launching "China Poverty Alleviation products 832" and "Wuliangye Family" andother e-commerce platforms, a "grading, classification, invitation, go out" online and offline
omni-directional marketing system was built. In the whole year, "purchasing instead of donation" povertyalleviation products totaled more than RMB 32 million. At present, Wuliangye has effectively increasedthe collective economic income of the village by more than RMB 18 million, and the per capita income ofpoor households has increased by more than RMB 10,000.Fourthly, break down barriers and resolve resistance occurred during development. TheCompany plays a combination of "education and training", so that students from poor families can "go toschool and afford to go to school", and poor farmers "have strong points and become rich". 1) supportthe development of education. Donated more than RMB 12 million to help build an information networkschool in Litang County, set up an education fund for poor areas, subsidize poor students, andvigorously improve the quality of teaching in the supported areas. 2) carry out technical skills training.Poverty alleviation cadres have been rooted in the front line of poverty alleviation for a long time,organized more than 40 night schools for farmers and herdsmen, led farmers to participate in theoperation and management of village collective industries, and carried out practical training to cultivateskills and enhance their ability to become rich.In the next step, Wuliangye will strictly implement the requirements of the "Take off the hat withouttaking off responsibility, policy, help or supervision" in accordance with the decisions and arrangementsof the provincial party committee and provincial government, continue to give full play to the Company'smulti-dimensional diversified industry platform advantages, and promote the sustainable developmentand growth of the collective economy in poverty-free counties and villages, consolidate theachievements of poverty alleviation, stimulate the endogenous driving force, and contribute Wuliangye’sstrength to effectively link up with rural revitalization.
(3) Targeted poverty alleviation effect
Index | Unit of measurement | Quantity/performance |
I. General situation | —— | —— |
Including: 1. Funds | RMB '0,000 | 47,803.26 |
2. Amount converted from materials | RMB '0,000 | 18.87 |
II. Input by items | —— | —— |
1. Industrial development poverty alleviation | —— | —— |
Including: 1.1 Type of industrial development poverty alleviation project | —— | Agriculture and forestry industries poverty alleviation |
1.2 Number of industrial development poverty alleviation project | Piece | 5 |
1.3 Amount invested for industrial development poverty alleviation project | RMB '0,000 | 44,556.26 |
2. Transfer employment poverty alleviation | —— | —— |
2.2 Number of attendees of vocational skill training | Person-time | 532 |
2.3 Number of employment of the poor under the help of the Company | Person | 40 |
3. Poverty alleviation relocation | —— | —— |
Including: 3.1 Number of employment of relocated household under the help of the Company | Person | 30 |
4. Educational poverty alleviation | —— | —— |
Including: 4.1 Amount invested for funding poor students | RMB '0,000 | 259.4 |
4.2 Number of poor students receiving fund | Person | 48 |
4.3 Amount for improving educational resources of impoverished areas | RMB '0,000 | 219 |
5. Health poverty alleviation | —— | —— |
Including: 5.1 Amount invested for medical and health resources of impoverished areas | RMB '0,000 | 40 |
6. Ecological protection poverty alleviation | —— | —— |
7. Subsistence allowance | —— | —— |
8. Social poverty alleviation | —— | —— |
8.2 Amount for fixed-point poverty alleviation | RMB '0,000 | 9,569.55 |
9. Other projects | —— | —— |
III. Awards received (content, level) | —— | —— |
Wuliangye won the "Top 50 cases of Poverty Alleviation by Social Organizations", "Top 50 Comprehensive cases of accurate Poverty Alleviation by Enterprises" of the Poverty Alleviation Office of the State Council, "Advanced fixed-point poverty alleviation Provincial Units in 2019" by the Sichuan Provincial Party Committee and Government, "Excellent cases of Poverty Alleviation in China" by the People's Daily, "2020 responsibility Golden Bull-Precision Poverty Alleviation Award" of China Social responsibility 100 Forum and other honors. |
(4) Subsequent targeted poverty alleviation plan
Wuliangye will always stay under the guidance by Xi Jinping's thought of socialism with Chinesecharacteristics in the new era, comprehensively promote rural revitalization unswervingly in accordancewith the central and provincial party committees, speed up the work deployment of agricultural and ruralmodernization, and strictly implement the requirements of the "Take off the hat without taking offresponsibility, take off the hat without taking off the policy, take off the hat without taking off help, andtake off the hat without taking off supervision", adhere to "Do not close out the booth, do not cast offburden, and never stop". In the new journey of building a modern socialist country in an all-round way,Wuliangye will help consolidate and expand the achievements of poverty alleviation and effectively linkup with the revitalization of rural areas, constantly promote the development of characteristic industriesin poverty-free areas, and extensively carry out the docking activities of production and marketing ofagricultural products, strengthen the ranks of rural talents in poverty-free areas, enhance the ability ofrural governance in poverty-free areas, and take practical measures to promote high-quality and efficientagriculture, suitable living and industry in rural areas and farmers being rich so as to make newcontributions to building a modern socialist country in an all-round way by a good start to achieve thegoal of the second centenary.
3. Conditions related to environmental protection
Whether the listed company and its subsidiaries are key pollutant discharging units announced byenvironmental protection authorities
□ Yes √ No
Voluntary disclosure
Name of the Company or subsidiaries | Name of main pollutants and characteristic pollutants | Emission Means | Number of outlets | Outlets Distribution | Emission concentration | Pollutant emission standard observed | Total emissions | Total emissions approved | Excessive emission |
Company | COD | Organized continuous emission | 2 | Wuliangye ecological wetland outlet, 503 workshop waste water discharge outlet | 19.53mg/L | Emission Standard of Water Pollutant for Minjiang River and Tuojiang River Basin (DB51/2311-2016) Table 1 | 75 tons | 198 tons | Non-excessive |
Ammonia nitrogen | 0.38mg/L | 1.6 tons | 14.85 tons | Non-excessive | |||||
Total phosphorus | 0.21mg/L | 0.8 tons | 2.48 tons | Non-excessive | |||||
Total nitrogen | 5.70mg/L | 22.09 tons | 74.25 tons | Non-excessive | |||||
Sulfur dioxide | Organized intermittent emission | 26 | Natural gas boiler outlet | 3-7mg/Nm? | Emission Standard of Air Pollutants for Boiler (GB13271-2014) | 14.02 tons | Not applicable | Non-excessive | |
Particulates | Organized intermittent emission | 26 | Natural gas boiler outlet | 2.8-6.65mg/Nm? | Emission Standard of Air Pollutants for Boiler (GB13271-2014) | 13 tons | Not applicable | Non-excessive |
Nitrogen oxide | Organized intermittent emission | 26 | Natural gas boiler outlet | 51-68.89mg/Nm? | Emission Standard of Air Pollutants for Boiler (GB13271-2014) | 149.1 tons | 789.65 tons | Non-excessive |
(1) Construction and operation of pollution-control facilities
The Company has 3 wastewater pretreatment stations and 1 wastewater advanced treatment zonein the Jiangbei industrial park, using biochemical treatment and Fenton treatment technology forwastewater treatment with a daily treatment capacity of 10,000 tons and are under good condition.
At present, the Company has built 15 natural gas boilers (20t/h) in the Jiangbei industrial park andput them into operation, which adopt the advanced low NOX combustion technology of first-line brandsof German and are under good condition.
(2) Environmental impact assessment on construction project and other environmentaladministrative licenses
The new, renovation and expansion projects of the Company all met the requirements of laws andregulations such as the national environmental protection law and the environmental impact assessmentlaw, went through the environmental impact assessment and approval process before commencement,and carried out environmental protection acceptance after completion.
(3) Contingency Plan for Environmental Emergencies
The Company has formulated the Comprehensive Contingency Plan for EnvironmentalEmergencies of Wuliangye Yibin Co., Ltd., which has been filed with Yibin Environmental ProtectionBureau after expert review. On November 6, 2020, the Company carried out the "2020 Emergency Drillfor Environmental Emergencies", which tested the emergency response, the effectiveness of responsemeasures and the organization and coordination ability under emergency situations, and laid a solidfoundation for the construction of the Company's emergency response system.
(4) Environment self-monitoring scheme
According to the requirements of the document Self-monitoring and Information Disclosure Measurefor National Key Monitoring Enterprises (Trial) (HF [2013] No. 81), the Company disclosed itsself-monitoring scheme, annual report and self-monitoring data to the society on the Pollutant SourceMonitoring Information Management and Sharing Platform of Sichuan Province. From January toDecember 2020, the Company disclosed totally 76,901 pieces of self-monitoring data.
The Company, through its official website, disclosed basic information, drainage information,construction and operation of pollution preventing and controlling facilities, environmental impactassessment on construction project, and other environmental administrative licenses, contingency planfor environmental emergencies, and annual self-monitoring scheme and report of the Company to thesociety on a monthly basis.
(5) Other environmental information to be disclosed
None.
(6) Other information related to environmental protection
① Wuliangye has firmly established the concept of “lucid waters and lush mountains are invaluableassets”, incorporated the concept of green development into the entire production process andimplemented the environmental protection responsibilities into all aspects of the Company. Establisheda sound responsibility system for environmental protection of the Party and government leading bodyand members and departments to clarify the responsibility for environmental protection.
② An Environmental Management Committee was set up, with the Chairman of the Company asthe Director, senior management as the Deputy Director and the first responsible person of the relevantunits as members, to coordinate and organize the implementation of the Company's environmentalprotection work in general. An Energy and Environmental Protection Management Department was setup, which is specifically responsible for the supervision of the implementation of environmentalprotection work; an ecological environment inspection team was set up, which is responsible for thesupervision of the implementation of the ecological civilization construction in all units of the Company;an environmental monitoring station was built, which is specifically responsible for the thematicmonitoring of pollutants emitted by all units; an environmental protection industry limited company wasset up, which is responsible for the "Three Wastes".
③ The Company actively promoted green projects
The Company fully carried out the construction of the coal-to-gas project to replace coal with cleannatural gas as a fuel for energy supply. The natural gas boilers adopt the advanced low-NOx combustiontechnology of Saacke and Weishaupt, and at present, 15 horizontal type condensing natural gas boilers(20t/h) have been built and put into operation.
Completion of the Songgong River (Wuliangye Section) Comprehensive Treatment Project,including environmental protection ecological wetland construction, river wetland construction,Songgong River channel cleanout and vegetation restoration on both sides, integrating landscapefunction, demonstration function, pollution control function, become Wuliangye environmental protectionimage window and industry demonstration benchmark.
④ In 2020, the Company treated 3.78 million tons of wastewater and the exhaust emission wasabout 1.6 billion cubic meters, with 100% up-to-standard discharge/emission.
⑤ There was no environmental pollution accident in 2020.
⑥ The comprehensive use of discarded lees was 460,000 tons in 2020 and 1.31 million cubicmetres of recycled water were used throughout the year.
XIX. Note on other major events
□ Applicable √ Not applicable
The Company had no other major events to be explained during the reporting period.
XX. Major events of subsidiaries
√ Applicable □ Not applicable
The Company held the 71st meeting of the 5th board of directors by circulation and communicationon March 30-31, 2020 and reviewed and approved the proposals for the change of domicile of certainwholly-owned subsidiaries and holding subsidiaries of the Company and the amendments to the Articlesof Association, as detailed in the Notice of Resolutions of the 71st Meeting of the 5th Board of Directorsdisclosed by the Company on April 3, 2020 (2020/No. 002).
Section VI Changes in Shares and ShareholdersI. Change in shares
1. Change in shares
Unit: Share
Before this change | Increase/decrease (+, -) | After this change | |||||||
Quantity | Proportion | Issuance of new shares | Bonus share | Capitalization of public reserve fund | Others | Sub-total | Quantity | Proportion | |
I. Restricted shares | 85,850,037 | 2.21% | -28,302 | -28,302 | 85,821,735 | 2.21% | |||
1. State shareholding | |||||||||
2. State-owned legal person shareholding | |||||||||
3. Other domestic shareholding | 85,850,037 | 2.21% | -28,302 | -28,302 | 85,821,735 | 2.21% | |||
Including: Domestic legal person shareholding | 85,641,285 | 2.21% | 85,641,285 | 2.21% | |||||
Domestic natural person shareholding | 208,752 | 0.00% | -28,302 | -28,302 | 180,450 | 0.00% | |||
4. Foreign shareholding | |||||||||
Including: Overseas legal person shareholding | |||||||||
Overseas natural person shareholding | |||||||||
II. Unrestricted shares | 3,795,757,968 | 97.79% | 28,302 | 28,302 | 3,795,786,270 | 97.79% | |||
1. Common share (in RMB) | 3,795,757,968 | 97.79% | 28,302 | 28,302 | 3,795,786,270 | 97.79% | |||
2. Domestic listed foreign shares | |||||||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III. Sum of shares | 3,881,608,005 | 100.00% | 0 | 0 | 3,881,608,005 | 100.00% |
Reasons for change in shares
√ Applicable □ Not applicable
During the reporting period, it was caused by the combined effect of the release of locked-up sharesof the resigned officers of the Company and changes in the directors, supervisors and officers.
Approval of changes in shares
□ Applicable √ Not applicable
Transfer of share changes
□ Applicable √ Not applicable
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable √ Not applicable
Impact of share changes on the basic earnings per share, diluted earnings per share, net assets pershare attributable to common shareholders of the Company and other financial index in the most recentyear and the most recent period
□ Applicable √ Not applicable
Other information the Company deems necessary or required by the securities regulatoryauthorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
Name of shareholder | Beginning number of restricted shares | Number of restricted shares increased in current period | Number of restricted shares released in current period | Ending number of restricted shares | Reason for being restricted | Date of release |
Liu Zhongguo | 51,800 | 51,800 | 0 | Release of lock-up due to resign of officer | 20200326 | |
Chen Lin | 73,643 | 24,548 | 98,191 | Lock-up due to resign of officer | 20210531 | |
Qiu Ping | 1,500 | 1,500 | 0 | Release of lock-up due to resign of supervisor | 20201127 | |
Cao Hongying | 0 | 2,325 | 2,325 | Lock-up due to the new supervisor | Enforcement of restrictions on the sale to directors, supervisors and officers during their term of office | |
Total | 126,943 | 26,873 | 53,300 | 100,516 | -- | -- |
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable √ Not applicable
2. Note on changes in the total shares, shareholder structure, asset and liability structure of
the Company
□ Applicable √ Not applicable
3. Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controller(s)
1. Number and shareholding of shareholders of the Company
Unit: Share
Total common shareholders at the end of the reporting period | 353,582 | Total common shareholders at the end of the previous month before the disclosure date of the Annual Report | 421,559 | Total preferred shareholders with voting rights restored (if any) at the end of the reporting period (see Note 8) | 0 | Total preferred shareholders with voting rights restored (if any) at the end of the previous month before the disclosure date of the reporting period (see Note 8) | 0 | ||||||||
Shareholders holding more than 5% shares or top 10 shareholders | |||||||||||||||
Name of shareholder | Nature of shareholder | Shareholding Proportion | Number of shares held at the end of the reporting period | Increase or decrease during the reporting period | Number of restricted shares held | Number of unrestricted shares held | Pledge or freezing | ||||||||
Status | Quantity | ||||||||||||||
Yibin State-Owned Assets Operation Co., Ltd. | State-owned legal person | 34.43% | 1,336,548,020 | 1,336,548,020 | |||||||||||
Sichuan Yibin Wuliangye Group Co., Ltd. | State-owned legal person | 20.40% | 791,823,343 | 791,823,343 | |||||||||||
Hong Kong Securities Clearing Co., Ltd. | Overseas legal person | 6.17% | 239,633,100 | 239,633,100 | |||||||||||
China Securities Finance Corporation Limited | Others | 2.38% | 92,385,936 | 92,385,936 | |||||||||||
Central Huijin Asset Management Co., Ltd. | State-owned legal person | 1.04% | 40,192,100 | 40,192,100 | |||||||||||
China Life Insurance Company Limited - Traditional - Ordinary Insurance Product-005L-CT001 Shenzhen | Others | 0.86% | 33,193,162 | 33,193,162 | |||||||||||
Wuliangye Yibin Co., Ltd. - Employee Stock Ownership Plan (Phase I) | Others | 0.61% | 23,696,280 | 23,696,280 | |||||||||||
Bank of China Limited - E Fund Blue Chip Hybrid Securities Investment Fund | Others | 0.56% | 21,858,499 | 21,858,499 | |||||||||||
Bank of China Limited - CMF CSI White Spirit Index Classification Securities Investment Fund | Others | 0.54% | 21,116,521 | 21,116,521 | |||||||||||
Shanghai Guotai Junan | Others | 0.50% | 19,414,047 | 19,414,047 |
Securities Asset Management Co., Ltd. - Bank of China-Guotai Junan Junxiang Wuliangye No.1 Collective Asset Management Plan | |||||
Explanations about the association relationship or concerted action among the above-mentioned shareholders | Among the top 10 shareholders of the Company, Sichuan Yibin Wuliangye Group Co., Ltd. is a wholly-owned subsidiary of Yibin Development Holding Group Co., Ltd., and it is unclear whether other public shareholders have any association relationship or acting in concert. | ||||
Shareholding of top 10 shareholders with unrestricted shares | |||||
Name of shareholder | Number of unrestricted shares held at the end of the reporting period | Class of share | |||
Class of share | Quantity | ||||
Yibin State-Owned Assets Operation Co., Ltd. | 1,336,548,020 | Common share (in RMB) | 1,336,548,020 | ||
Sichuan Yibin Wuliangye Group Co., Ltd. | 791,823,343 | Common share (in RMB) | 791,823,343 | ||
Hong Kong Securities Clearing Co., Ltd. | 239,633,100 | Common share (in RMB) | 239,633,100 | ||
China Securities Finance Corporation Limited | 92,385,936 | Common share (in RMB) | 92,385,936 | ||
Central Huijin Asset Management Co., Ltd. | 40,192,100 | Common share (in RMB) | 40,192,100 | ||
China Life Insurance Company Limited - Traditional - Ordinary Insurance Product-005L-CT001 Shenzhen | 33,193,162 | Common share (in RMB) | 33,193,162 | ||
Bank of China Limited - E Fund Blue Chip Hybrid Securities Investment Fund | 21,858,499 | Common share (in RMB) | 21,858,499 | ||
Bank of China Limited - CMF CSI White Spirit Index Classification Securities Investment Fund | 21,116,521 | Common share (in RMB) | 21,116,521 | ||
Bank of China Limited - E Fund Small Hybrid Securities Investment Fund | 13,380,000 | Common share (in RMB) | 13,380,000 | ||
Industrial and Commercial Bank of China Limited - Invesco Great Wall Emerging Growth Hybrid Securities Investment Fund | 10,718,419 | Common share (in RMB) | 10,718,419 | ||
Note on the association relationship or concerted action between top 10 unrestricted public shareholders, and between top 10 unrestricted public shareholders and top 10 shareholders | Among the top 10 shareholders of the Company, Sichuan Yibin Wuliangye Group Co., Ltd. is a wholly-owned subsidiary of Yibin Development Holding Group Co., Ltd., and it is unclear whether other public shareholders have any association relationship or acting in concert. |
Remarks: Yibin State-Owned Assets Operation Co., Ltd. has been renamed as Yibin DevelopmentHolding Group Co., Ltd. in February 2021, for details, please refer to the Announcement on the Changeof Name of the Controlling Shareholder of the Company issued by the Company on February 22, 2021
(2021/No. 004).Whether the Company’s top 10 common shareholders and top 10 unrestricted commonshareholders agreed on a repurchase transaction during the reporting period
□ Yes √ No
The Company’s top 10 common shareholders and top 10 unrestricted common shareholders did notagree on a repurchase transaction during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholder: local state-owned
Type of controlling shareholder: legal person
Name of controlling shareholder | Legal representative/head of unit | Date of establishment | Organization code | Primary business |
Yibin Development Holding Group Co., Ltd. | Hua Shurui | August 04, 1999 | 915115007118234259 | Capital operation and assets operation within the scope authorized by the People's Government of Yibin City |
Equity of other domestic and foreign listed companies controlled and participated by controlling shareholder during the reporting period | Yibin Development Holding Group Co., Ltd. directly holds 131,847,574 shares of Yibin Tianyuan Group Co., Ltd., taking up 16.88%; indirectly holds 79,368,520 shares of Yibin Paper Industry Co., Ltd., taking up 44.87%. |
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
There was no change in controlling shareholder of the Company during the reporting period.
3. Actual controller of the Company and person acting in concert
Nature of actual controller: local state-owned assets administration
Type of actual controller: legal person
Name of actual controller | Legal representative/head of unit | Date of establishment | Organization code | Primary business |
State-owned Assets Supervision and Administration Commission of Yibin Municipal Government | Deng Wenguang | February 24, 2005 | Not applicable | Not applicable |
Equity of other domestic and foreign listed companies controlled by actual controller during the reporting period | Yibin State-owned Assets Supervision and Administration Commission directly holds 131,847,574 shares of Yibin Tianyuan Group Co., Ltd., taking up 16.88%; indirectly holds 79,368,520 shares of Yibin Paper Industry Co., Ltd., taking up 44.87%. |
Change of actual controller during the reporting period
□ Applicable √ Not applicable
There was no change in actual controller of the Company during the reporting period.
Block diagram of equity and control relationship between the Company and actual controller
The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not applicable
4. Other legal person shareholders holding more than 10%
√ Applicable □ Not applicable
Name of legal person shareholder | Legal representative/head of unit | Date of establishment | Registered capital (RMB) | Primary business or management activities |
Sichuan Yibin Wuliangye Group Co., Ltd. | Li Shuguang | August 12, 1998 | 1,000,000,000 | Investment and investment management, assets management, enterprise management service |
5. Restricted share reduction of controlling shareholder, actual controller, reorganizer and
other commitment makers
□ Applicable √ Not applicable
State-owned Assets Supervision andAdministration Commission of Yibin
Municipal GovernmentYibin Development Holding Group Co., Ltd.
Yibin Development Holding Group Co., Ltd.Sichuan Yibin Wuliangye Group Co., Ltd.
Sichuan Yibin Wuliangye Group Co., Ltd.Wuliangye Yibin Co., Ltd.
Wuliangye Yibin Co., Ltd.
34.43%
34.43%
100%
100%100%
100%
20.40%
Section VII Preferred Share
□ Applicable √ Not applicable
The Company had no preferred shares during the reporting period.
Section VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds during the reporting period.
Section IX Directors, Supervisors, Senior Management and Employees
I. Changes in shareholdings of directors, supervisors, and senior management
Name | Position | Status of service | Gender | Age | Date of appointment | Date ceasing to hold office | Number of shares held at the beginning of the period (share) | Increase in number of shares held in current period (share) | Decrease in number of shares held in current period (share) | Other increase/ decrease (share) | Number of shares held at the end of the period (share) |
Zeng Congqin | Deputy Secretary of CPC, President | Incumbent | Male | 52 | September 27, 2019 | Till now | |||||
Li Shuguang | Secretary of CPC, Director | Incumbent | Male | 58 | April 21, 2017 | Till now | |||||
Zou Tao | Member of CPC, Director, Executive Deputy General Manager | Incumbent | Male | 42 | July 21, 2018 | Till now | |||||
Jiang Wenge | Member of CPC, Director | Incumbent | Male | 54 | May 10, 2019 | Till now | |||||
Fu Nanping | Independent Director | Incumbent | Male | 59 | July 18, 2014 | Till now | |||||
Zhou Yousu | Independent Director | Incumbent | Male | 68 | June 22, 2016 | Till now | |||||
Gan Shengdao | Independent Director | Incumbent | Male | 54 | November 18, 2016 | Till now | |||||
Liu Feng | Supervisor | Incumbent | Female | 51 | May 29, 2020 | Till now | |||||
Yang Ling | Supervisor | Incumbent | Female | 34 | May 29, 2020 | Till now | |||||
Wu Guoping | Employee Supervisor | Incumbent | Male | 51 | June 09, 2015 | Till now | |||||
Cao Hongying | Employee Supervisor | Incumbent | Female | 54 | June 5, 2020 | Till now | 3,100 | 3,100 |
Zhu Zhongyu | Member of CPC, Deputy General Manager | Incumbent | Male | 57 | July 18, 2014 | Till now | 11,501 | 11,501 | |||
Tang Bochao | Member of CPC, Deputy General Manager | Incumbent | Male | 56 | July 18, 2014 | Till now | 20,000 | 20,000 | |||
Tang Shengyun | Member of CPC, Deputy General Manager | Incumbent | Male | 58 | July 18, 2014 | Till now | 9,100 | 9,100 | |||
Luo Wei | Member of CPC, Deputy General Manager, Chief Financial Officer | Incumbent | Male | 56 | July 18, 2014 | Till now | |||||
Zhao Dong | Member of CPC, Deputy General Manager, Deputy Chief Engineer | Incumbent | Male | 56 | July 21, 2018 | Till now | |||||
Total | -- | -- | -- | -- | -- | -- | 43,701 | 43,701 |
II. Change of directors, supervisors and senior management of the Company
√ Applicable □ Not applicable
Name | Position | Type | Date | Reason |
Chen Lin | Deputy Secretary of CPC, Director, General Manager, Chief Engineer | Resigned | November 27, 2020 | Retired as director and senior management due to reaching the mandatory age for retirement |
Ren Shiming | Supervisor | Resigned | May 29, 2020 | Ceased to be a supervisor due to appointment and dismission by the general meeting |
Qiu Ping | Supervisor | Resigned | May 29, 2020 | Ceased to be a supervisor due to appointment and dismission by the general meeting |
Yang Yunxia | Employee Supervisor | Resigned | June 6, 2020 | Ceased to be an employee supervisor due to appointment and dismission by the congress of workers and staff |
Liu Feng | Supervisor | Appointment and dismission | May 29, 2020 | Take the position of supervisor as appointed and dismissed by the general meeting |
Yang Ling | Supervisor | Appointment and dismission | May 29, 2020 | Take the position of supervisor as appointed and dismissed by the general meeting |
Cao Hongying | Employee Supervisor | Appointment and dismission | June 6, 2020 | Take the position of employee supervisor as appointed and dismissed by the congress of workers and staff |
Remarks: 1. On June 6, 2020, the board of supervisors of the Company nominated Mr. JiangWenchun as the candidate for supervisor of the 5th board of supervisors of the Company, which had tobe submitted to the general meeting for consideration.
2. On August 25, 2020, the board of directors of the Company nominated Ms. Jiang Lin as thecandidate for non-independent director of the 5th board of director of the Company and nominated Mr.Xie Zhihua, Mr. Wu Yue and Mr. Lang Dingchang as the candidates for independent directors of the 5thboard of director of the Company, which had to be submitted to the general meeting for consideration.III. Service statusProfessional background, main work experience and main responsibilities currently in the Companyof current directors, supervisors and senior management of the Company
1. Mr. Zeng Congqin, doctor’s degree. He began to work in July 1988 and successively served inChangning County of Yibin, municipal authorities, and Cuiping District. He once served as a member ofthe Standing Committee, Director of the Propaganda Department, and Executive Deputy County Chief ofChangning County, Director of the Development Planning and Investment Service Bureau of YibinLingang Economic Development Zone, Secretary of the Party Leadership Group and Director of YibinMunicipal Development and Reform Commission and Director of Municipal Price Bureau, Director ofYibin Municipal Bureau of Energy, and Secretary of Cuiping District Party Committee. At present, heserves as the Deputy Secretary of CPC and Director of the Company, and Deputy Secretary of CPC and
General Manager of the Group Company.
2. Mr. Li Shuguang, bachelor degree, senior economist. He began to work in July 1983 andsuccessively served the Sichuan Provincial Machinery Industry Department, Sichuan Provincial PlannedEconomy Committee, Sichuan Provincial Economic Commission, Sichuan Provincial Economic andTrade Commission, Sichuan Provincial Economic Commission, and Sichuan Provincial Economic andInformation Commission. He once served as Assistant Mayor of Luzhou People's Government,Chairman of Board of Supervisors of State-owned Enterprises of Sichuan Provincial Government, ChiefEconomist of Sichuan Provincial Economic and Information Commission, Deputy Secretary of theLeading Party Group and Deputy Director of Sichuan Provincial Economic and Information Commission.At present, he serves as the Secretary of CPC and Director of the Company, and Secretary of CPC andPresident of the Group Company.
3. Mr. Zou Tao, master degree. He began to work in July 2004 and once served the EconomicInvestigation Department of Sichuan Provincial Public Security Department, Sichuan ProvincialDiscipline Inspection Commission, and Sichuan Provincial Department of Supervision. He once servedas the Deputy Director of No. 4 Office of Discipline Inspection and Supervision and Director of the No.2Office of Discipline Inspection and Supervision of Sichuan Provincial Discipline Inspection Commission.In January 2017, he served as the Deputy Secretary of CPC of the Group Company. He now serves asMember of CPC, Director, and Executive Deputy General Manager of the Company, and Member ofCPC and Vice President of the Group Company, and concurrently as President of Wuliang NongXiangSeries Baijiu Yibin Co., Ltd.
4. Mr. Jiang Wenge, master degree. He began to work in August 1985 and once served in Peng'anCounty and Shunqing District of Nanchong City, Sichuan, and Sichuan Provincial Development andReform Commission, and Welfare-to-work Office of Sichuan Province. He once served as Deputy Headof Shunqing District Government, Deputy Director of Employment and Income Distribution Office,Deputy Director of Division of Rural Economy, and Director of Division of Rural Economy of SichuanProvincial Development and Reform Commission, and the Deputy Director and Primary Investigator ofWelfare-to-work Office of Sichuan Province. He now serves as Member of CPC and Director of theCompany, and Member of CPC, Director and Deputy General Manager of the Group Company.
5. Mr. Fu Nanping, doctor’s degree. He began to work in September 1985 and once served theOffice of Science and Technology of Nanchang Aircraft Manufacturing Company, and successivelyserved as Deputy Manager of Issuance Department of SDIC Securities Co., Ltd (Guosen Securities),Deputy General Manager of Investment Bank Headquarter, Junan Securities Co., Ltd., General Managerof Investment Bank Department II, Deputy Director of Corporate Financing Headquarter, and DeputyGeneral Manager of Shenzhen Headquarter of Guotai Junan Securities Co., Ltd. He now serves as theBusiness Inspector and Supervisor of Guotai Junan Securities Co., Ltd. and Independent Director of the
Company.
6. Mr. Zhou Yousu, bachelor degree, professor. He began to work in July 1983 and once servedSichuan Academy of Social Sciences and Meigu County Committee of Sichuan Province. He nowserves as researcher and professor of Sichuan Academy of Social Sciences and Independent Director ofthe Company, as well as the Independent Director of Chengdu Huasun Technology Group Inc., Ltd.
7. Mr. Gan Shengdao, doctor’s degree. He has been working on the teaching and scientific researchof financial management and accounting at Sichuan University since July 1990. He now serves asprofessor, doctoral supervisor, post-doctoral co-supervisor in accounting of Business School, SichuanUniversity, independent director of the Company, independent director of Sichuan Yahua IndustrialGroup Co., Ltd., independent director of Sinoseal Holding Co., Ltd., independent director of ChengduXGimi Technology Co., Ltd., independent director of RML Technology Co., Ltd., and outside director ofSichuan Huashi Group Ltd.
8. Ms. Liu Feng, bachelor degree. She began to work in July 1990 and once worked in YibinTianyuan Group Co., Ltd., served as a teacher in technical school, headmaster of technical school anddirector of training centre, vocational education administrator of labour and personnel department, staffof technical reform project office, deputy director of design and research institute and deputy director ofstaff education institute. She has successively served as the head of the political division of the YibinAgricultural Machinery Bureau, Party member of the Yibin Civil Air Defense Office, the head of thediscipline inspection team and the special inspector for discipline inspection and supervision. She nowserves as a member of the Party Committee and Secretary of Committee for Discipline Inspection ofYibin Development Holding Group Co., Ltd.
9. Ms. Yang Ling, master degree. She began to work in July 2013 and successively served as thefinancial officer of Geotechnical Company No. 3 of China Southwest Geotechnical Investigation &Design Institute Co., Ltd., the deputy head of Comprehensive Budget Unit of Jiang'an County FinanceBureau, the state-owned asset administrator, the deputy head of the state-owned assets department andthe deputy head of the finance department of Yibin State-Owned Assets Operation Co., Ltd. She nowserves as the head of the Financial Management Department of Yibin Development Holding Group Co.,Ltd., and concurrently as a member of the Investment Decision Committee of Yibin Wuliangye FundManagement Co., Ltd.
10. Mr. Wu Guoping, bachelor degree, auditor and senior sourcer. He began to work in August 1989and once served Yibin City Bureau of Audit, transferred to the Company and served as Deputy Directorof the Audit Department in May 2015, Employee Supervisor of the Company in June 2015, and DeputyDirector of the Audit Supervision Department in July 2015. He now serves as Employee Supervisor ofthe Company and Deputy Director of the Audit Supervision Department.
11. Ms. Cao Hongying, college degree, senior engineer. She began to work in Wuliangye Liquor
Factory in December 1981, and served as the deputy head of the product R&D department of theCompany in December 2012, secretary of the Party branch of workshop 506 of the Company in August2017, secretary of the Party branch and director of workshop 506 of the Company in May 2018,secretary of the Party branch and director of workshop 506 of the Company in November 2020, andconcurrently as director of the Liquor Body Design Center. She now serves as the secretary of the Partybranch and director of workshop 506 of the Company, and concurrently as director of the Liquor BodyDesign Center.
12. Zhu Zhongyu, master degree, senior salesman, economist, and political analyst. He began towork in Wuliangye Liquor Factory in August 1985, and served as Deputy General Manager of theCompany since April 2003. He now serves as Member of CPC and Deputy General Manager of theCompany, and concurrently as President of Wuliangye Xianlin Ecological Liquor Co., Ltd. and ExecutiveDeputy General Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
13. Mr. Tang Bochao, master degree, senior economist. He began to serve in Mengzi MilitarySub-command of People's Liberation Army of China since October 1983, and began to work inWuliangye Liquor Factor in March 1987 and served as Member of CPC and Deputy General Manager ofthe Company since August 2012. He now serves as Member of CPC and Deputy General Manager ofthe Company.
14. Mr. Tang Shengyun, master degree, professor level senior engineer and China Liquor BrewingMaster. He began to work in Wuliangye Liquor Factory in July 1987, and served as Member of CPC andDeputy General Manager of the Company since August 2012. He now serves as Member of CPC andDeputy General Manager of the Company.
15. Mr. Luo Wei, master degree. He began to work in July 1986 and once served Yibin MunicipalBureau of Finance, Yibin Municipal Auditing Bureau, Yibin Investment Group Co., Ltd., and Yibin AirportCo., Ltd. He served as Member of CPC, Deputy General Manager, and Chief Financial Officer of theCompany in February 2014. He now serves as Member of CPC, Deputy General Manager, and ChiefFinancial Officer of the Company.
16. Mr. Zhao Dong, bachelor degree, professor level senior engineer. He began to work in August1986 and once served Sichuan Light Industry School. He began to work in Wuliangye Liquor Factory inMay 1989, and served as Director of the Research Center of the Company in November 2012. Heserved as Member of CPC and Deputy Chief Engineer of the Wuliangye Yibin Co., Ltd. in July 2017, andDeputy General Manager of the Company in July 2018. He now serves as Member of CPC, DeputyGeneral Manager, and Deputy Chief Engineer of the Company.
Service status in the shareholder's unit
√ Applicable □ Not applicable
Name of staff | Name of shareholder's unit | Position in shareholder's unit | Date of appointment | Date ceasing to hold office | Whether to receive remuneration or allowance in the shareholder's unit |
Li Shuguang | Sichuan Yibin Wuliangye Group Co., Ltd. | Secretary of CPC, President | No | ||
Zeng Congqin | Sichuan Yibin Wuliangye Group Co., Ltd. | Deputy Secretary of CPC, Vice President, General Manager | No | ||
Zou Tao | Sichuan Yibin Wuliangye Group Co., Ltd. | Member of CPC, Vice President | No | ||
Jiang Wenge | Sichuan Yibin Wuliangye Group Co., Ltd. | Member of CPC, Director, Deputy General Manager | No | ||
Liu Feng | Yibin Development Holding Group Co., Ltd. | Member of CPC, Secretary of Committee for Discipline Inspection | Yes | ||
Yang Ling | Yibin Development Holding Group Co., Ltd. | Head of Financial Management Department | Yes |
Service status in other units
√ Applicable □ Not applicable
Name of staff | Name of other unit | Position in other unit | Date of appointment | Date ceasing to hold office | Whether to receive remuneration or allowance in other units |
Fu Nanping | Guotai Junan Securities Co., Ltd. | Business Inspector and Supervisor | Yes | ||
Zhou Yousu | Sichuan Academy of Social Sciences | Researcher, professor | Yes | ||
Chengdu Huasun Technology Group Inc., Ltd. | Independent Director | ||||
Gan Shengdao | Sichuan University | Professor, doctoral supervisor, and post-doctoral co-supervisor in accounting | Yes | ||
Sichuan Yahua Industrial Group Co., Ltd., Sinoseal Holding Co., Ltd., Chengdu XGimi Technology Co., Ltd., and RML Technology Co., Ltd. | Independent Director | Yes | |||
Outside Director of Sichuan Huashi Group Ltd. | Outside Director | ||||
Zou Tao | Wuliang NongXiang Series Baijiu | President | No |
Yibin Co., Ltd. | |||||
Zhu Zhongyu | Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | President | No | ||
Yibin Wuliangye Liquor Sales Co., Ltd. | Executive Deputy General Manager | ||||
Tang Bochao | Oriental Outlook Media Co., Ltd. | Vice President | No |
Punishment against current directors, supervisors and officers of the Company and those whoresigned during the reporting period by securities regulators in recent three years
□ Applicable √ Not applicable
IV. Remuneration of directors, supervisors and senior management
Decision-making procedures, determination basis and actual payment of remuneration of directors,supervisors and senior management.
1. Decision-making procedures
The Company had formulated the remuneration distribution scheme for officers of the Companyaccording to relevant systems and provisions of superior departments and the Company, which would bereported to the remuneration committee of the board of directors for approval, and then submitted to theboard of directors of the Company for approval before implementation.
2. Determination basis
The Company determined remuneration of the directors, supervisors and senior managementbased on evaluation according to relevant systems and provisions.
3. Actual payment of remuneration
Part of the basic remuneration was paid monthly and part of the performance pay was paid withinthe year.
Remuneration of directors, supervisors and senior management of the Company during the
reporting period
Unit: RMB '0,000
Name | Position | Gender | Age | Status of service | Total remuneration received from the Company | Whether to get remuneration from related parties of the Company |
Zeng Congqin | President | Male | 52 | Incumbent | 69.5 | No |
Li Shuguang | Director | Male | 58 | Incumbent | 109.53 | No |
Zou Tao | Director | Male | 42 | Incumbent | 101.11 | No |
Jiang Wenge | Director | Male | 54 | Incumbent | 99.51 | No |
Fu Nanping | Independent Director | Male | 59 | Incumbent | 10 | No |
Zhou Yousu | Independent Director | Male | 68 | Incumbent | 10 | No |
Gan Shengdao | Independent Director | Male | 54 | Incumbent | 10 | No |
Liu Feng | Supervisor | Male | 51 | Incumbent | Yes | |
Yang Ling | Supervisor | Male | 34 | Incumbent | Yes | |
Wu Guoping | Employee Supervisor | Male | 51 | Incumbent | 60.92 | Yes |
Cao Hongying | Employee Supervisor | Female | 54 | Incumbent | 158.58 | No |
Zhu Zhongyu | Deputy General Manager | Male | 57 | Incumbent | 100.11 | No |
Tang Bochao | Deputy General Manager | Male | 56 | Incumbent | 100.06 | No |
Tang Shengyun | Deputy General Manager | Male | 58 | Incumbent | 100.29 | No |
Luo Wei | Deputy General Manager, Chief Financial Officer | Male | 56 | Incumbent | 99.51 | No |
Zhao Dong | Deputy General Manager, Deputy Chief Engineer | Male | 56 | Incumbent | 100.53 | No |
Total | -- | -- | -- | -- | 1,129.65 | -- |
Remarks: 1. Allowances received by the independent directors were tax-inclusive.
2. The total remuneration of directors and senior management (other than independent directors)represents the aggregate of the base remuneration for 2020 and the performance-based remunerationadvanced for 2019 and 2020 during the reporting period. Employee supervisor, Wu Guoping received anallowance of RMB 40,200 from the Group Company.
Equity incentive granted to directors and officers of the Company during the reporting period
□ Applicable √ Not applicable
V. Company employees
1. Number, professional composition and educational background of employees
Number of employees in the parent company (person) | 17,589 |
Number of employees in main subsidiaries (person) | 8,293 |
Total employees (person) | 25,882 |
Total employees receiving salary in the current period (person) | 25,882 |
Number of part-time workers (persons) | 2,066 |
Number of retired employees whose expenses need to be borne by the parent company and main subsidiaries (person) | 180 |
Professional composition | |
Category of professional composition | Number of professionals (person) |
Production personnel | 19,450 |
Marketing personnel | 1,156 |
Technician | 4,048 |
Financial personnel | 203 |
Administrative personnel | 1,025 |
Total | 25,882 |
Educational background | |
Category of education background | Number (person) |
College and above | 5,665 |
Senior high school to college | 12,697 |
Middle school and below | 7,520 |
Total | 25,882 |
2. Remuneration policy
The remuneration policies currently implemented by the Company are the "Trial Measures for theManagement of Total Wages of Municipal Supervised Enterprises in Yibin City" (YGZW [2019] No. 205),the "Interim Provisions on Wage Management" (YWJR [2009] No. 264) and the "Trial Measures for theManagement of Total Wages of Subsidiaries" (YWJR [2020] No. 4).
3. Training plan
In 2021, training work of the Company will center on the strategic layout of "Reform, Innovation,Transformation, and Development" and focus on construction of the talent team to strengthen thefoundation of innovation and development. The Company will carry out hierarchical and classified
trainings with rich contents and by flexible means based on the demand of the Company for reform anddevelopment and the demands of employees for diversified trainings, enhancing the planning,pertinency and effectiveness of educational training. The Company plans to carry out 124 trainings atcompany level, 111 trainings at department level, 246 trainings at workshop level, 103 external trainings,and 58 skill trainings to provide strong human resources guarantee for the reform and innovation of theCompany, so as to effectively match up with and promote strategic improvement of the Company andachievement of the annual operation objectives.
4. Labor outsourcing
□ Applicable √ Not applicable
Section X Corporate Governance
I. Basic information of corporate governanceThe Company, being dedicated to the construction and improvement of the corporate governancestructure, has established, and will continue to revise and improve relevant rules and regulations in strictaccordance with the Company Law, Securities Law, Governance Guidelines for Listed Companies, andother laws and regulations. The Company has established relevant rules and regulations for the generalmeeting, the board of directors and the board of supervisors to ensure that they will exercise thediscretion, decision-making right, and right of supervision. The board of directors of the Company hasset up five special committees: strategic committee, remuneration and appraisal committee, nominationcommittee, audit committee, and comprehensive budget management committee, which effectivelypromoted the standardized operation of the board of directors.
During the reporting period, the Company revised the Articles of Association, Procedure Rules ofthe Board of Directors, Procedure Rules of Board of Supervisors and Procedure Rules of the GeneralMeeting, further improving the Company's management system.Whether there is any significant difference between the actual situation of corporate governanceand the normative documents on governance of the listed company issued by China SecuritiesRegulatory Commission
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and thenormative documents on listed corporate governance issued by China Securities RegulatoryCommission.
II. Independence of the Company from its controlling shareholders in respect of
business, personnel, assets, organization and finance
The Company was 50-50 separated from the controlling shareholders in respect of business,personnel, assets, organization and finance, and had independent and complete production andoperation system and independent operation capability.
In respect of business, the Company owned independent production and operation system,auxiliary production system and corresponding supporting facilities, and had the ability to makedecisions about operating activities independently.
In respect of personnel, the Company carried out independent management on labor, personneland salary matters.
In respect of assets, the Company had ownership and right of control over its assets, and the
controlling shareholders did not occupy the assets or funds of the Company.
In respect of organization, the Company had independent main production and operationmanagement organization and system.
In respect of finance, the Company owned independent financial department, establishedindependent accounting system and financial management system, and opened independent bankaccount.
III. Peer competition
□ Applicable √ Not applicable
IV. Note on the annual general meeting and extraordinary general meeting held
during the reporting period
1. General meeting during the reporting period
Meeting session | Meeting type | Investor participation proportion | Convening date | Disclosure date | Disclosure index |
Annual General Meeting 2019 | Annual general meeting | 71.79% | May 29, 2020 | May 30, 2020 | CNINFO (http://www.cninfo.com.cn) |
2. Extraordinary general meeting convened at the request of preferred shareholders with
voting rights restored
□ Applicable √ Not applicable
V. Performance of duties by independent directors during the reporting period
1. Attendance of board meeting and general meeting by independent directors
Attendance of board meeting and general meeting by independent directors | |||||||
Name of independent director | Number of board meetings to be attended during the reporting period | Number of board meetings attended on site | Number of board meetings attended by correspondence | Number of board meetings delegated to attend | Number of board meetings absent | Whether fails to personally attend the board meeting for two consecutive times | Number of general meetings attended |
Fu Nanping | 13 | 2 | 11 | 0 | 0 | No | 1 |
Zhou Yousu | 13 | 2 | 11 | 0 | 0 | No | 1 |
Gan Shengdao | 13 | 2 | 11 | 0 | 0 | No | 1 |
Note on failure to personally attend the board meeting for two consecutive times
Not applicable
2. Objections made by independent directors on relevant matters of the Company
Whether the independent directors make objections on relevant matters of the Company
□ Yes √ No
The independent directors made no objections on relevant matters of the Company during thereporting period.
3. Other note on the performance of duties by the independent directors
Whether relevant suggestions of the independent directors on the Company are adopted
√ Yes □ No
Note on adoption or non-adoption of relevant suggestions of the independent directors on theCompany
During the reporting period, the independent directors of the Company performed their dutiesindependently in strict accordance with relevant laws, regulations and the Articles of Association, putforwarded professional opinions or suggestions on operating decision of the Company, issuedindependent opinions on matters of the Company which needed the opinions of independent directorsduring the reporting period, and played its due role in safeguarding legal rights interests of the Companyand all shareholders.VI. Performance of duties by special committees under the board of directors
during the reporting period
The board of directors of the Company has set up five special committees: strategic committee,remuneration and appraisal committee, nomination committee, audit committee, and comprehensivebudget management committee.
(I) Strategic committee
During the reporting period, the strategic committee of the Company convened three meetingsaccording to relevant requirements of the Implementation Rules for Strategic Committee of the Company,listening to the report on the promotion of key projects and the work summary of the 13th Five-Year, aswell as discussing the 14th Five-Year Plan.
(II) Audit committee
During the reporting period, the audit committee was diligent and responsible in performing theresponsibilities required by the system: 1. Review the Company's 1st quarter report of 2020,semi-annual report of 2020, and the 3rd quarter report of 2020 and form resolutions; 2. Review theCompany's renewal of employment of the accounting firm in 2021 and the audit budget, and formresolutions; 3. Determine the timing of audit of the financial and accounting statements 2020 throughconsultation with the accounting firm responsible for annual audit of the Company; 4. Communicate withthe accounting firm and independent directors before entry of the auditor of the Annual Report of 2020; 5.Review, for the first time, the summary financial and accounting statements of 2020 prepared by theDepartment of Finance of the Company before entry of the CPAs for the annual audit, and providewritten comments; 6. After entry of the CPA for annual audit, the audit committee and the CPAs forannual audit communicated about problems found during the audit and the time for submitting the audit
report; and 7. The audit committee further reviewed the Company's financial and accounting statements2020 and form resolutions after the CPAs for the annual audit issued the preliminary audit opinions.
(III) Nomination committeeThe nomination committee convened one meeting during the reporting period according to relevantprovisions of the Implementation Rules for Nomination Committee of the Company, and agreed tonominate Ms. Jiang Lin as a candidate for non-independent director of the 5th board of directors of theCompany and nominate Mr. Xie Zhihua, Mr. Wu Yue and Mr. Lang Dingchang as candidates forindependent director of the 5th board of directors of the Company.(IV) Remuneration and appraisal committeeThe remuneration and appraisal committee, according to relevant provisions of the ImplementationRules for Remuneration and Appraisal Committee of the Company, issued audit opinion on theremuneration payment of officers of the Company in 2020 during the reporting period.(V) Comprehensive budget management committeeThe committee, according to relevant provisions of the Implementation Rules for ComprehensiveBudget Management Committee of the Company, Serious performance of duties reviewed andapproved the Annual Budget Scheme 2020 and the Comprehensive Budget Adjustment Scheme 2020during the reporting period.VII. Work of the board of supervisorsWhether the board of supervisors find any risk of the Company in the supervision activities duringthe reporting period
□ Yes √ No
The board of supervisors has no objection to the supervisory matters during the reporting period.VIII. Appraisal and incentive of senior management
Refer to "Section IX, IV. Remuneration of directors, supervisors and officers" of the Report fordetails. ”IX. Internal control
1. Details of major internal control defects found during the reporting period
□ Yes √ No
2. Self-evaluation report on internal control
Disclosure date of internal control evaluation report (full text) | April 28, 2021 |
Disclosure index of internal control evaluation report (full text) | CNINFO (http://www.cninfo.com.cn) |
Proportion of the total assets of the unit included in the evaluation scope to the total assets of the consolidated financial statement of the Company | 100.00% |
Proportion of operating revenue of the unit included in the evaluation scope to the operating revenue of the consolidated financial statement of the Company | 100.00% |
Defect identification standard | ||
Category | Financial Report | Non-financial report |
Qualitative standard | 1. Major defects: (1) Correction by the Company of the financial statements which have been published. (2) Materials misstatements found by the external auditor in current financial statements which have not been identified. (3) Corrupt practice of directors, supervisors, and senior management found by the external auditor. (4) Ineffective supervision of internal control by the Company’s internal audit department. (5) Major defects previously found but were not corrected within a reasonable period or were ineffectively corrected. 2. Important defects: (1) Failure to select and apply accounting policies in accordance with generally accepted accounting principles. (2) Failure to effectively control irregular (non-repeating) or complicated transactions. (3) Failure to effectively control the anti-corrupt work. (4) Ineffective internal control over the financial report at the end of the period. 3. Common defects: Defects other than major defects and important defects are recognized as common defects. | 1. Major defects: (1) In violation of national laws, regulations, or normative documents. (2) Unscientific enterprise decision-making procedure, such as wrong decision, which causes failure of major transactions. (3) Loss of management personnel or technician of important posts. (4) Lack of institutional control or systematic failure of the institution for important businesses, and existence but ineffective operation of institutional guidance for internal control of important economic business. (5) Failure to correct major defect within a reasonable period. 2. Important defects: (1) Property loss not reaching or exceeding the level of materiality but should be noticed by the board of directors and the management in nature. (2) Individual events criticized by government departments, causing moderate negative influence on reputation of the Company. (3) Violation of internal rules and regulations of the enterprise and causing losses. (4) Defect in important business mechanism or system. 3. Common defects: Other defects in internal control other than major defects and important defects. |
Quantitative standard | 1. Major defects: Misstatement amount >3% of total operating revenue; misstatement amount >10% of net profit; misstatement amount >3% of total assets. 2. Important defects: 1% of total operating revenue < misstatement amount ≤ 3% of total operating revenue; 5% of net profit < misstatement amount ≤ 10% of net profit; 1% of total assets < misstatement amount ≤ 3% of total assets. 3. Common defects: Misstatement amount ≤1% of total operating revenue; misstatement amount ≤5% of net profit; misstatement amount ≤1% of total assets. | 1. Major defects: Proportion of loss to net profit ≥5%. 2. Important defects: 3%≤ proportion of loss to net profit <5%. 3. Common defects: Proportion of loss to net profit <3%. |
Number of major defects in | 0 |
financial reports (piece) | |
Number of major defects in non-financial reports (piece) | 0 |
Number of important defects in financial reports (piece) | 0 |
Number of important defects in non-financial reports (piece) | 0 |
X. Internal control audit report
√ Applicable □ Not applicable
Audit opinion paragraphs in the internal control audit report | |
Sichuan Huaxin (Group) CPA (LLP) believes that the Company maintained effective internal control over the financial report on all significant aspects in accordance with the Basic Criteria of Enterprise Internal Control and relevant provisions as of December 31, 2020. | |
Disclosure of internal control audit report | Disclosed |
Disclosure date of internal control audit report (full text) | April 28, 2021 |
Disclosure index of internal control audit report (full text) | Refer to CNINFO (http://www.cninfo.com.cn) for details |
Type of opinions of internal control audit report | Standard unqualified opinion |
Whether non-financial report has major defects | No |
Whether the accounting firm issues an internal control audit report with non-standard opinion
□ Yes √ No
Whether the internal control audit report from the accounting firm is in consistent with the opinions ofthe self-evaluation report from the board of directors
√ Yes □ No
Section XI Corporate Bonds
Whether the Company has bonds publicly issued and listed on the stock exchange that have notmatured or matured but not paid in full on the date of approval of the Annual Report
No
Section XII Financial ReportI. Audit Report
Type of audit opinion | Standard unqualified opinion |
Date of signing the Audit Report | April 25, 2021 |
Name of Audit Firm | Sichuan Huaxin (Group) CPA (LLP) |
Audit Report No. | CHXS (2021) No. 0028 |
Name of CPAs | Li Min, Liu Jun, Ye Juan |
Audit Report (Text)To all shareholders of Wuliangye Yibin Co., Ltd.:
I. Audit opinionWe have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as theCompany), including the consolidated balance sheet and the balance sheet of parent company as ofDecember 31, 2020, consolidated income statement and income statement of parent company,consolidated cash flow statement and cash flow statement of parent company, consolidated statementof changes in owners' equity and statement of changes in owners' equity of parent company for the year2020 and notes to these financial statements.In our opinion, the attached financial statements of the Company have been prepared inaccordance with the provisions of the Accounting Standards for Business Enterprises and give a trueand fair view of the consolidated financial position and financial position of parent company of theCompany as of December 31, 2020 and of the consolidated financial performance and cash flows andfinancial performance and cash flows of parent company for the year 2020 on all significant aspects.II. Basis for opinionWe conducted our audit in accordance with the Auditing Standards for Chinese Certified PublicAccountants. The “Responsibility of CPAs for audit of the financial statements” in the Audit Reportfurther states our responsibility under these Standards. We are independent of the Company and fulfillother responsibilities in terms of professional ethics according to the Code of Professional Ethics forChinese CPAs. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.III. Key audit mattersThe key audit matters are those that we consider most important to audit the financial statements ofthe current period in our professional judgment. The response to these matters is based on the audit ofthe financial statements as a whole and the formation of audit opinion. We do not express our opinionson these matters separately. We have identified the following matters as key audit matters during theaudit:
Key audit matters | Addressed in the context of our audit |
(I) Existence and integrity of cash and cash equivalents | |
Refer to notes to financial statements "V. Notes to consolidated financial statements, 1. Cash and cash equivalents". As of December 31, 2020, the balance of cash and cash equivalents of the Company was RMB 68,209,577,000 taking up 59.89% of the total assets. The safety of deposit, accuracy and integrity of balance have great impact on the financial statements due to the large amount of balance of cash and cash equivalents and large number of bank accounts, therefore we consider the existence and integrity of cash and cash equivalents as a key audit matter. | With respect of cash and cash equivalents, we conducted the following audit procedures: 1. Understand, test, and evaluate key internal controls related to the management of cash and cash equivalents; 2. Obtain list of bank accounts opened, and check the books of the Company against the bank account information and integrity of the bank accounts; 3. Obtain the bank statement and bank reconciliation for external confirmation of the bank accounts, and control the process of external confirmation; 4. Supervise the originals of certificate of fixed deposit, and pay attention to the holders of certificate of fixed deposit and other information. 5. Obtain credit report of the enterprise and check whether the cash and cash equivalents are under mortgage, charge or frozen; 6. At the end of the period, the amount deposited with Sichuan Yibin Wuliangye Group Finance Co., Ltd. was RMB 28,600,538,900 in total. Check the deposit and loan businesses of Sichuan Yibin Wuliangye Group Finance Co., Ltd. We believe that the above audit procedures can support the management of the Company in determining the existence and integrity of cash and cash equivalents. |
(II) Integrity of disclosure of association relationships and related transactions | |
Please refer to notes to financial statement "IX. Related parties and related transactions". In 2020, the Company had different categories of related transactions with related parties in large amount. There is a risk of failing to fully disclosure the association relationships and related transactions in the notes to financial statements due to large number of related parties and involving in various types of related transactions, therefore we consider integrity of disclosure of association relationships and related transactions as a key audit matter. | With respect of association relationships and related transactions, we conducted the following audit procedures: 1. Understand the procedures of the Company for related party identification, evaluate and test the internal control of the Company for identifying and disclosing association relationships and related transactions; 2. Obtain the list of association relationships provided by the management, and check against the information obtained from other public channels; review the major sales, purchase, and other transactions to identify any association relationship not being disclosed; 3. Obtain the amount of related transactions and details of the balance provided by the management and check against the financial records; 4. Sample the amount and balance of related transactions for external confirmation; 5. Obtain the resolutions of the board of directors and those of the general meeting concerning the related transactions, and check against the list of association relationships, amount and balance of related transactions provided by the management; 6. Obtain statement of the management about integrity of the association relationships and related transactions; 7. Check whether the association relationship and related transactions have been fully disclosed according to the Accounting Standards for Business Enterprises. We believe that the above audit procedures can support the management of the Company in determining the existence and integrity of association relationship and related transactions. |
IV. Other informationThe management of the Company is responsible for other information. Such information includesthe information covered in the Annual Report 2020, but excluding the financial statements and our auditreport.Our audit opinion on the financial statements does not cover other information and we do notexpress any form of verification conclusions on other information.Combined with our audit of the financial statements, it’s our responsibility to read other information.In this process, we shall consider whether there is material inconsistency of other information with thefinancial statements or the situation understood by us in the audit process or material misstatement.Based on the work that has been conducted by us, if we determine that other information containsmaterial misstatements, we should report the fact. We have nothing to report in this regard.
V. Responsibility of management and governance for the financial statementsThe management of the Company is responsible for preparing the financial statements inaccordance with the provisions of the Accounting Standards for Business Enterprises and giving a trueand fair view; designing, implementing and maintaining necessary internal control, so that the financialstatements are free from material misstatement due to fraud or error.When preparing the financial statements, the management is responsible for evaluating thegoing-concern ability of the Company, disclosing the matters related to the going-concern (if applicable)and using the going-concern assumption, unless the management plans to liquidate the Company orstop operation or has no other realistic choices.The governance is responsible for supervising the financial reporting process of the Company.VI. Responsibility of CPAs for audit of the financial statementsOur goal is to obtain reasonable assurance as to whether there is no material misstatement causedby fraud or error in the financial statements as a whole, and to issue an audit report containing auditopinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with auditing standards will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.As part of an audit in accordance with auditing standards, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the management.
(4) Draw a conclusion about the appropriateness of the going-concern assumption used by themanagement. Meanwhile, draw a conclusion about the major uncertainty of the matters orcircumstances possibly resulting in major concerns about the going-concern ability of the Companyaccording to the audit evidence obtained. If we conclude that a material uncertainty exists, the auditing
standards require us to draw attention to users of the financial statements in the Audit Report to therelated disclosures in the financial statements or, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of the Audit Report.However, future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whetherthe financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.
We communicate with governance layer regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant defects in internal control thatwe identify during our audit.
We also provide the governance layer with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.
From the matters communicated with the governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter shouldnot be communicated in our report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA (LLP) Chengdu, China | Chinese Certified Public Accountant: Li Min (Project Partner) Chinese Certified Public Accountant: Liu Jun Chinese Certified Public Accountant: Ye Juan |
April 25, 2021
II. Financial Statements
Unit of notes to financial statements: RMB
1. Consolidated Balance Sheet
Prepared by: Wuliangye Yibin Co., Ltd. | December 31, 2020 | Unit: RMB Yuan |
Item | December 31, 2020 | December 31, 2019 |
Current assets: | ||
Cash and cash equivalents | 68,209,577,022.61 | 63,238,825,723.79 |
Settlement reserves | ||
Capital lent | ||
Trading financial assets | ||
Derivative financial assets | ||
Notes receivable | 18,568,421,154.30 | 14,643,149,595.72 |
Accounts receivable | 41,496,170.35 | 134,449,693.03 |
Accounts receivable financing | 2,024,442,016.72 | 3,450,166,659.06 |
Prepayments | 247,259,080.42 | 231,909,140.09 |
Premium receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance | ||
Other receivables | 36,199,607.12 | 1,248,644,572.40 |
Including: Interest receivable | 1,215,275,214.91 | |
Dividends receivable | ||
Purchase restituted finance asset | ||
Inventory | 13,228,273,631.45 | 13,679,619,615.41 |
Contract asset | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | ||
Total current assets | 102,355,668,682.97 | 96,626,764,999.50 |
Non-current assets: | ||
Loans and advances | ||
Debt investment | ||
Other debt investments | ||
Long-term receivables |
Long-term equity investment | 1,849,977,103.30 | 1,021,778,731.59 |
Other equity instrument investment | ||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
Investment properties | ||
Fixed assets | 5,866,880,860.03 | 6,108,745,912.72 |
Construction in progress | 1,482,098,184.64 | 812,428,248.30 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use assets | ||
Intangible assets | 433,611,890.55 | 410,155,227.81 |
Development expenditures | ||
Goodwill | 1,621,619.53 | 1,621,619.53 |
Long-term deferred expenses | 122,881,072.66 | 91,601,331.96 |
Deferred income tax assets | 1,486,071,579.95 | 1,157,391,979.00 |
Other non-current assets | 293,128,020.09 | 165,284,283.25 |
Total non-current assets | 11,537,470,330.75 | 9,770,207,334.16 |
Total assets | 113,893,139,013.72 | 106,396,972,333.66 |
Current liabilities: | ||
Short-term loans | ||
Loan from central bank | ||
Capital borrowed | ||
Trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | 763,628,891.84 | 419,485,425.61 |
Accounts payable | 3,382,875,146.71 | 3,257,672,975.56 |
Accounts received in advance | 23,949,793.92 | 12,530,706,854.77 |
Contract liability | 8,618,543,467.25 | |
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Payroll payable | 3,629,524,988.52 | 3,594,886,729.81 |
Tax payable | 5,542,200,330.67 | 7,939,166,588.84 |
Other payables | 2,800,763,582.13 | 2,292,680,733.51 |
Including: Interest payable | ||
Dividend payable | 37,918,093.23 | |
Commission charge and commission payable | ||
Reinsurance payables | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | 1,117,452,799.61 | |
Total current liabilities | 25,878,939,000.65 | 30,034,599,308.10 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term loans | ||
Bonds payable | ||
Including: Preferred share | ||
Perpetual bond | ||
Lease liability | ||
Long-term payable | ||
Long-term payroll payable | ||
Estimated liabilities | ||
Deferred income | 255,953,368.36 | 266,325,368.40 |
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 255,953,368.36 | 266,325,368.40 |
Total liabilities | 26,134,892,369.01 | 30,300,924,676.50 |
Owner’s equity: | ||
Capital stock | 3,881,608,005.00 | 3,881,608,005.00 |
Other equity instruments | ||
Including: Preferred share | ||
Perpetual bond | ||
Capital reserve | 2,682,647,086.15 | 2,682,647,086.15 |
Less: Treasury stock | ||
Other comprehensive income | ||
Special reserves | ||
Surplus reserve | 19,698,525,995.51 | 16,092,197,023.01 |
Provision for general risk | ||
Undistributed profit | 59,443,191,559.08 | 51,634,248,548.06 |
Total owners’ equity attributable to parent company | 85,705,972,645.74 | 74,290,700,662.22 |
Minority equity | 2,052,273,998.97 | 1,805,346,994.94 |
Total owners’ equity | 87,758,246,644.71 | 76,096,047,657.16 |
Total liabilities and owners’ equity | 113,893,139,013.72 | 106,396,972,333.66 |
Legal representative: Zeng Congqin | Responsible person for accounting: Luo Wei | Responsible person of accounting firm: Luo Jun |
2. Balance Sheet of Parent Company
Unit: RMB Yuan
Item | December 31, 2020 | December 31, 2019 |
Current assets: | ||
Cash and cash equivalents | 35,797,929,213.94 | 28,257,367,404.51 |
Trading financial assets | ||
Derivative financial assets | ||
Notes receivable | ||
Accounts receivable | ||
Accounts receivable financing | ||
Prepayments | 75,493,465.93 | 80,520,520.72 |
Other receivables | 7,066,125,125.42 | 10,126,706,853.03 |
Including: Interest receivable | 570,078,014.35 | |
Dividends receivable | 734,729,782.94 | 654,791,389.27 |
Inventory | ||
Contract asset | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | ||
Total current assets | 42,939,547,805.29 | 38,464,594,778.26 |
Non-current assets: | ||
Debt investment | ||
Other debt investments | ||
Long-term receivables | ||
Long-term equity investment | 13,315,418,495.83 | 10,609,783,624.61 |
Other equity instrument investment | ||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
Investment properties | ||
Fixed assets | 94,199,222.32 | 100,266,366.93 |
Construction in progress | 105,734,347.80 | 100,358,221.33 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use assets | ||
Intangible assets | 44,593,088.87 | 39,222,336.12 |
Development expenditures | ||
Goodwill | ||
Long-term deferred expenses | ||
Deferred income tax assets | 2,288,329.69 | 2,202,432.10 |
Other non-current assets | ||
Total non-current assets | 13,563,433,484.51 | 10,853,032,981.09 |
Total assets | 56,502,981,289.80 | 49,317,627,759.35 |
Current liabilities: | ||
Short-term loans | ||
Trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payable | 781,064.42 | 418,136.00 |
Accounts received in advance | ||
Contract liability | ||
Payroll payable | 8,803,447.13 | 8,811,734.27 |
Tax payable | 33,466,208.83 | 30,732,337.42 |
Other payables | 210,715,274.14 | 285,450,874.79 |
Including: Interest payable | ||
Dividend payable | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | ||
Total current liabilities | 253,765,994.52 | 325,413,082.48 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: Preferred share | ||
Perpetual bond | ||
Lease liability | ||
Long-term payable | ||
Long-term payroll payable | ||
Estimated liabilities | ||
Deferred income | 500,000.00 | 1,000,000.00 |
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 500,000.00 | 1,000,000.00 |
Total liabilities | 254,265,994.52 | 326,413,082.48 |
Owner’s equity: | ||
Capital stock | 3,881,608,005.00 | 3,881,608,005.00 |
Other equity instruments | ||
Including: Preferred share | ||
Perpetual bond | ||
Capital reserve | 2,682,647,086.15 | 2,682,647,086.15 |
Less: Treasury stock | ||
Other comprehensive income | ||
Special reserves | ||
Surplus reserve | 9,464,358,442.95 | 7,884,654,620.01 |
Undistributed profit | 40,220,101,761.18 | 34,542,304,965.71 |
Total owners’ equity | 56,248,715,295.28 | 48,991,214,676.87 |
Total liabilities and owners’ equity | 56,502,981,289.80 | 49,317,627,759.35 |
3. Consolidated Income Statement
Unit: RMB Yuan
Item | Year 2020 | Year 2019 |
I. Total operating revenue | 57,321,059,453.15 | 50,118,105,877.14 |
Including: Operating revenue | 57,321,059,453.15 | 50,118,105,877.14 |
Interest revenue | ||
Premium earned |
Commission charge and commission revenue | ||
II. Total operating cost | 29,738,554,309.94 | 26,123,144,090.12 |
Including: Operating cost | 14,811,961,478.65 | 12,802,259,947.34 |
Interest expenditure | ||
Commission charge and commission expense | ||
Surrender value | ||
Net amount of expense of compensation | ||
Net provision for insurance contracts | ||
Bonus insurance expense | ||
Reinsurance expense | ||
Tax and surcharges | 8,092,348,596.10 | 6,984,343,102.55 |
Selling expenses | 5,578,918,523.98 | 4,985,579,336.77 |
Administrative expenses | 2,609,529,686.09 | 2,655,347,148.09 |
Research and development expense | 131,315,225.33 | 126,360,421.11 |
Financial expenses | -1,485,519,200.21 | -1,430,745,865.74 |
Including: Interest expense | ||
Interest revenue | 1,521,933,975.40 | 1,416,398,912.72 |
Plus: Other incomes | 162,373,770.41 | 159,712,241.81 |
Investment income (loss indicated with “-”) | 93,504,494.16 | 92,500,753.05 |
Including: Investment revenue from associates and joint ventures | 93,504,494.16 | 92,500,753.05 |
Income on de-recognition of financial assets measured at amortized cost | ||
Exchange income (loss indicated with “-”) | ||
Net exposure hedging income (loss indicated with “-”) | ||
Income from changes of fair value (loss indicated with “-”) | ||
Credit impairment loss | 1,024,420.84 | -1,133,580.27 |
(loss indicated with “-”) | ||
Asset impairment loss (loss indicated with “-”) | -14,113,185.98 | -3,020,763.91 |
Gain from disposal of assets (loss indicated with “-”) | 1,129,293.57 | 2,779,400.03 |
III. Operating profit (loss indicated with “-”) | 27,826,423,936.21 | 24,245,799,837.73 |
Plus: Non-operating revenue | 40,661,952.32 | 29,890,272.65 |
Less: Non-operating expenditure | 188,638,670.83 | 169,678,066.85 |
IV. Total profit (total loss indicated with “-”) | 27,678,447,217.70 | 24,106,012,043.53 |
Less: Income tax expenses | 6,765,106,808.16 | 5,877,756,764.92 |
V. Net profit (net loss indicated with “-”) | 20,913,340,409.54 | 18,228,255,278.61 |
(I) Classification by business continuity | ||
1. Net profit from continuing operations (net loss indicated with “-”) | 20,913,340,409.54 | 18,228,255,278.61 |
2. Net profit from discontinued operations (net loss indicated with “-”) | ||
(II) Classification by ownership | ||
1. Net profit attributable to shareholders of the parent company | 19,954,809,594.52 | 17,402,164,190.16 |
2. Minority interest income | 958,530,815.02 | 826,091,088.45 |
VI. Net amount of other comprehensive income after tax | ||
Net amount of other comprehensive income after tax attributable to owner of parent company | ||
(I) Other comprehensive income that cannot reclassified into the profit and loss | ||
1. Changes arising from the remeasurement of defined benefit plan | ||
2. Other comprehensive income that cannot be reclassified into profit and loss under the equity method | ||
3. Changes in fair value of other equity instrument investment |
4. Changes in fair value of corporate credit risk | ||
5. Others | ||
(II) Other comprehensive income that will be reclassified into the profit and loss | ||
1. Other comprehensive income that can be reclassified into profit and loss under the equity method | ||
2. Changes in fair value of other debt investments | ||
3. Amount of financial assets reclassified into other comprehensive income | ||
4. Credit impairment provision for other debt investments | ||
5. Cash flow hedge reserve | ||
6. Balance arising from the translation of foreign currency financial statements | ||
7. Others | ||
Net amount of other comprehensive income after tax attributable to minority shareholders | ||
VII. Total comprehensive income | 20,913,340,409.54 | 18,228,255,278.61 |
Total comprehensive income attributable to owner of parent company | 19,954,809,594.52 | 17,402,164,190.16 |
Total comprehensive income attributable to minority shareholders | 958,530,815.02 | 826,091,088.45 |
VIII. Earnings per share: | ||
(I) Basic earnings per share | 5.141 | 4.483 |
(II) Diluted earnings per share | 5.141 | 4.483 |
Net profit realized by the combined party before the consolidation in case of business combination under the same controlduring the reporting period: RMB 0.00, and the net profit realized by the combined party in previous period: RMB 0.00.Legal representative: Zeng Congqin Responsible person for accounting: Luo WeiResponsible person of accounting firm: Luo Jun
4. Income Statement of Parent Company
Unit: RMB Yuan
Item | Year 2020 | Year 2019 |
I. Operating revenue | 40,800.00 | 557,807.81 |
Less: Operating cost | 0.00 | 0.00 |
Tax and surcharges | 76,817.34 | 530,756.77 |
Selling expenses | ||
Administrative expenses | 117,170,397.30 | 112,675,199.88 |
Research and development expense | 42,712,530.27 | 42,509,849.28 |
Financial expenses | -903,071,222.56 | -747,727,624.11 |
Including: Interest expense | ||
Interest revenue | 903,108,973.17 | 747,767,664.67 |
Plus: Other incomes | 13,198,222.54 | 2,672,800.00 |
Investment income (loss indicated with “-”) | 15,335,974,898.92 | 11,979,399,612.91 |
Including: Investment revenue from associates and joint ventures | 91,885,853.76 | 92,458,647.87 |
Income on de-recognition of financial assets measured at amortized cost (loss indicated with “-”) | ||
Net exposure hedging income (loss indicated with “-”) | ||
Income from changes of fair value (loss indicated with “-”) | ||
Credit impairment loss (loss indicated with “-”) | -343,590.35 | -506,172.26 |
Asset impairment loss (loss indicated with “-”) | ||
Gain from disposal of assets (loss indicated with “-”) | ||
II. Operating profit (loss indicated with “-”) | 16,091,981,808.76 | 12,574,135,866.64 |
Plus: Non-operating revenue | 10,278,787.15 | 670,614.65 |
Less: Non-operating expenditure | 160,529,678.78 | 147,551,770.23 |
III. Total profit (total loss indicated with | 15,941,730,917.13 | 12,427,254,711.06 |
“-”) | ||
Less: Income tax expenses | 144,692,687.72 | 108,026,839.29 |
IV. Net profit (net loss indicated with “-”) | 15,797,038,229.41 | 12,319,227,871.77 |
(I) Net profit from continuing operations (net loss indicated with “-”) | 15,797,038,229.41 | 12,319,227,871.77 |
(II) Net profit from discontinued operations (net loss indicated with “-”) | ||
V. Net amount of other comprehensive income after tax | ||
(I) Other comprehensive income that cannot reclassified into the profit and loss | ||
1. Changes arising from the remeasurement of defined benefit plan | ||
2. Other comprehensive income that cannot be reclassified into profit and loss under the equity method | ||
3. Changes in fair value of other equity instrument investment | ||
4. Changes in fair value of corporate credit risk | ||
5. Others | ||
(II) Other comprehensive income that will be reclassified into the profit and loss | ||
1. Other comprehensive income that can be reclassified into profit and loss under the equity method | ||
2. Changes in fair value of other debt investments | ||
3. Amount of financial assets reclassified into other comprehensive income | ||
4. Credit impairment provision for other debt investments | ||
5. Cash flow hedge reserve | ||
6. Balance arising from the translation of foreign currency financial statements |
7. Others | ||
VI. Total comprehensive income | 15,797,038,229.41 | 12,319,227,871.77 |
VII. Earnings per share: | ||
(I) Basic earnings per share | ||
(II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB Yuan
Item | Year 2020 | Year 2019 |
I. Cash flows from operating activities: | ||
Cash received from the sales of goods and the rendering of services | 62,667,576,569.99 | 63,111,448,367.92 |
Net increase in customer deposit and interbank deposit | ||
Net increase in loan from central bank | ||
Net increase in capital borrowed | ||
Cash received from original insurance contract fee | ||
Net cash received from reinsurance business | ||
Insured savings and net increase of investment | ||
Cash received from interest, commission charge and commission | ||
Net increase of capital borrowed | ||
Net increase of returned business capital | ||
Net cash received from securities trading brokerage | ||
Receipts of tax refunds | 56,724,988.21 | 29,278,082.30 |
Other cash received relating to operating activities | 2,243,660,435.98 | 1,463,776,630.55 |
Sub-total of cash inflows from operating activities | 64,967,961,994.18 | 64,604,503,080.77 |
Cash payments for goods purchased and services received | 17,340,551,154.28 | 16,858,330,333.04 |
Net increase of customer loans and advances |
Net increase of deposits in central bank and interbank | ||
Cash paid for original insurance contract compensation | ||
Net increase in capital lent | ||
Cash paid for interest, commission charge and commission | ||
Cash paid for policy dividend | ||
Cash paid to employee and for employee | 5,740,856,054.71 | 5,633,645,226.36 |
Payments of all types of taxes | 23,227,933,861.45 | 15,634,936,299.82 |
Other cash paid relating to operating activities | 3,960,293,330.53 | 3,365,519,180.89 |
Sub-total of cash outflows from operating activities | 50,269,634,400.97 | 41,492,431,040.11 |
Net cash flows from operating activities | 14,698,327,593.21 | 23,112,072,040.66 |
II. Cash flows from investing activities: | ||
Cash received from disposals and withdraw on investment | ||
Cash received from investment income | ||
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 6,438,616.16 | 92,050,811.98 |
Net cash received from disposal of subsidiaries and other business units | ||
Other cash received relating to investing activities | ||
Sub-total of cash inflows from investing activities | 6,438,616.16 | 92,050,811.98 |
Cash payments to acquire and construct fixed assets, intangible assets and other long-term assets | 993,760,087.19 | 1,698,655,125.66 |
Cash payments to acquire investments | 734,693,877.55 | 9,800,000.00 |
Net increase of mortgaged loans | ||
Net cash payments for acquisitions of subsidiaries and other business units |
Other cash payments relating to investing activities | ||
Sub-total of cash outflows from investing activities | 1,728,453,964.74 | 1,708,455,125.66 |
Net cash flows from investing activities | -1,722,015,348.58 | -1,616,404,313.68 |
III. Cash flows from financing activities: | ||
Cash received from investors in making investment in the enterprise | 15,000,000.00 | |
Including: Cash received from subsidiaries’ absorption of minority shareholders’ investment | ||
Cash received from borrowings | ||
Other cash received relating to financing activities | ||
Sub-total of cash inflows from financing activities | 15,000,000.00 | |
Cash repayments of amounts borrowed | ||
Cash paid for distribution of dividends or profits, or cash payments for interests | 9,228,223,328.76 | 7,251,646,962.56 |
Including: Dividends and profits paid by subsidiaries to minority shareholders | 688,685,717.76 | 652,913,354.06 |
Other cash payments relating to financing activities | ||
Sub-total of cash outflows from financing activities | 9,228,223,328.76 | 7,251,646,962.56 |
Net cash flows from financing activities | -9,213,223,328.76 | -7,251,646,962.56 |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | -130,439.21 | 63,661.42 |
V. Net increase in cash and cash equivalents | 3,762,958,476.66 | 14,244,084,425.84 |
Plus: Beginning balance of cash and cash equivalents | 63,204,133,323.79 | 48,960,048,897.95 |
VI. Ending balance of cash and cash equivalents | 66,967,091,800.45 | 63,204,133,323.79 |
6. Cash Flow Statement of Parent Company
Unit: RMB Yuan
Item | Year 2020 | Year 2019 |
I. Cash flows from operating activities: | ||
Cash received from the sales of goods and the rendering of services | 40,800.00 | 592,800.00 |
Receipts of tax refunds | ||
Other cash received relating to operating activities | 3,721,490,020.40 | 3,324,064,952.46 |
Sub-total of cash inflows from operating activities | 3,721,530,820.40 | 3,324,657,752.46 |
Cash payments for goods purchased and services received | ||
Cash paid to employee and for employee | 94,250,407.74 | 83,616,698.28 |
Payments of all types of taxes | 143,335,903.87 | 113,260,133.25 |
Other cash paid relating to operating activities | 471,475,162.79 | 342,415,572.20 |
Sub-total of cash outflows from operating activities | 709,061,474.40 | 539,292,403.73 |
Net cash flows from operating activities | 3,012,469,346.00 | 2,785,365,348.73 |
II. Cash flows from investing activities: | ||
Cash received from disposals and withdraw on investment | ||
Cash received from investment income | 15,164,150,651.49 | 11,574,757,006.40 |
Net cash received from disposals of fixed assets, intangible assets and other long-term assets | 5,513.55 | |
Net cash received from disposal of subsidiaries and other business units | ||
Other cash received relating to investing activities | ||
Sub-total of cash inflows from investing activities | 15,164,150,651.49 | 11,574,762,519.95 |
Cash payments to acquire and construct fixed assets, intangible assets and other long-term assets | 11,002,115.83 | 1,043,835.63 |
Cash payments to acquire investments | 2,613,749,017.46 | 169,473,007.80 |
Net cash payments for acquisitions of subsidiaries and other business units | ||
Other cash payments relating to investing activities | ||
Sub-total of cash outflows from investing activities | 2,624,751,133.29 | 170,516,843.43 |
Net cash flows from investing activities | 12,539,399,518.20 | 11,404,245,676.52 |
III. Cash flows from financing activities: | ||
Cash received from investors in making investment in the enterprise | ||
Cash received from borrowings | ||
Other cash received relating to financing activities | ||
Sub-total of cash inflows from financing activities | ||
Cash repayments of amounts borrowed | ||
Cash paid for distribution of dividends or profits, or cash payments for interests | 8,539,537,611.00 | 6,598,733,608.50 |
Other cash payments relating to financing activities | ||
Sub-total of cash outflows from financing activities | 8,539,537,611.00 | 6,598,733,608.50 |
Net cash flows from financing activities | -8,539,537,611.00 | -6,598,733,608.50 |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | ||
V. Net increase in cash and cash equivalents | 7,012,331,253.20 | 7,590,877,416.75 |
Plus: Beginning balance of cash and cash equivalents | 28,257,367,404.51 | 20,666,489,987.76 |
VI. Ending balance of cash and cash equivalents | 35,269,698,657.71 | 28,257,367,404.51 |
7. Consolidated Statement of Changes in Owners' Equity
Amount of current period
Unit: RMB Yuan
Item | Year 2020 | ||||||||||||||
Owner’s equity attributable to parent company | Minority equity | Total owners’ equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserve | Provision for general risk | Undistributed profit | Others | Sub-total | |||||
Preferred share | Perpetual bond | Others | |||||||||||||
I. Ending balance of previous year | 3,881,608,005.00 | 2,682,647,086.15 | 16,092,197,023.01 | 51,634,248,548.06 | 74,290,700,662.22 | 1,805,346,994.94 | 76,096,047,657.16 | ||||||||
Plus: Changes in accounting policy | |||||||||||||||
Correction of prior errors | |||||||||||||||
Business combination involving enterprises under the same control | |||||||||||||||
Others | |||||||||||||||
II.Beginning balance of current year | 3,881,608,005.00 | 2,682,647,086.15 | 16,092,197,023.01 | 51,634,248,548.06 | 74,290,700,662.22 | 1,805,346,994.94 | 76,096,047,657.16 | ||||||||
III.Increase/decrease | 3,606,328,972.50 | 7,808,943,011.02 | 11,415,271,983.52 | 246,927,004.03 | 11,662,198,987.55 |
in the current period (decrease indicated with “-”) | |||||||||||||||
(I) Total comprehensive income | 19,954,809,594.52 | 19,954,809,594.52 | 958,530,815.02 | 20,913,340,409.54 | |||||||||||
(II) Capital paid in and reduced by owners | 15,000,000.00 | 15,000,000.00 | |||||||||||||
1. Common stocks invested by owners | 15,000,000.00 | 15,000,000.00 | |||||||||||||
2. Capital invested by other equity instrument holders | |||||||||||||||
3. Amount of share-based payments recognized in owners' equity | |||||||||||||||
4. Others | |||||||||||||||
(III) Profit distribution | 3,606,328,972.50 | -12,145,866,583.50 | -8,539,537,611.00 | -726,603,810.99 | -9,266,141,421.99 | ||||||||||
1.Withdrawal of surplus reserve | 3,606,328,972.50 | -3,606,328,972.50 | |||||||||||||
2.Withdrawal of provision for general risk | |||||||||||||||
3.Distribution to | -8,539,537,611.00 | -8,539,537,611.00 | -726,603,810.99 | -9,266,141,421.99 |
owners (or shareholders) | |||||||||||||||
4. Others | |||||||||||||||
(IV) Internal transfer of owners' equity | |||||||||||||||
1. Capital reserve transfer to paid-in capital (or capital stock) | |||||||||||||||
2. Surplus reserve transfer to paid-in capital (or capital stock) | |||||||||||||||
3. Recovery of losses by surplus reserve | |||||||||||||||
4. Carry forward retained earnings in variation of defined benefit plan | |||||||||||||||
5. Carry forward retained earnings of other comprehensive income | |||||||||||||||
6. Others | |||||||||||||||
(V) Special reserves |
1.Withdrawal of current period | |||||||||||||||
2. Use of current period | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Ending balance of current period | 3,881,608,005.00 | 2,682,647,086.15 | 19,698,525,995.51 | 59,443,191,559.08 | 85,705,972,645.74 | 2,052,273,998.97 | 87,758,246,644.71 |
Amount of previous period
Unit: RMB Yuan
Item | Year 2019 | ||||||||||||||
Owner’s equity attributable to parent company | Minority equity | Total owners’ equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserve | Provision for general risk | Undistributed profit | Others | Sub-total | |||||
Preferred share | Perpetual bond | Others | |||||||||||||
I. Ending balance of previous year | 3,881,608,005.00 | 2,682,647,086.15 | 13,120,411,030.42 | 43,802,603,958.99 | 63,487,270,080.56 | 1,632,169,260.55 | 65,119,439,341.11 | ||||||||
Plus: Changes in accounting policy | |||||||||||||||
Correction of prior errors | |||||||||||||||
Business combination involving enterprises under the same control | |||||||||||||||
Others | |||||||||||||||
II. Beginning balance of current year | 3,881,608,005.00 | 2,682,647,086.15 | 13,120,411,030.42 | 43,802,603,958.99 | 63,487,270,080.56 | 1,632,169,260.55 | 65,119,439,341.11 | ||||||||
III. | 2,971,785,992.59 | 7,831,644,589.07 | 10,803,430,581.66 | 173,177,734.39 | 10,976,608,316.05 |
Increase/decrease in the current period (decrease indicated with “-”) | |||||||||||||||
(I) Total comprehensive income | 17,402,164,190.16 | 17,402,164,190.16 | 826,091,088.45 | 18,228,255,278.61 | |||||||||||
(II) Capital paid in and reduced by owners | |||||||||||||||
1. Common stocks invested by owners | |||||||||||||||
2. Capital invested by other equity instrument holders | |||||||||||||||
3. Amount of share-based payments recognized in owners' equity | |||||||||||||||
4. Others | |||||||||||||||
(III) Profit distribution | 2,971,785,992.59 | -9,570,519,601.09 | -6,598,733,608.50 | -652,913,354.06 | -7,251,646,962.56 | ||||||||||
1. Withdrawal of surplus reserve | 2,971,785,992.59 | -2,971,785,992.59 | |||||||||||||
2. Withdrawal of provision for |
general risk | |||||||||||||||
3. Distribution to owners (or shareholders) | -6,598,733,608.50 | -6,598,733,608.50 | -652,913,354.06 | -7,251,646,962.56 | |||||||||||
4. Others | |||||||||||||||
(IV) Internal transfer of owners' equity | |||||||||||||||
1. Capital reserve transfer to paid-in capital (or capital stock) | |||||||||||||||
2. Surplus reserve transfer to paid-in capital (or capital stock) | |||||||||||||||
3. Recovery of losses by surplus reserve | |||||||||||||||
4. Carry forward retained earnings in variation of defined benefit plan | |||||||||||||||
5. Carry forward retained earnings of other comprehensive income |
6. Others | |||||||||||||||
(V) Special reserves | |||||||||||||||
1. Withdrawal of current period | |||||||||||||||
2. Use of current period | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Ending balance of current period | 3,881,608,005.00 | 2,682,647,086.15 | 16,092,197,023.01 | 51,634,248,548.06 | 74,290,700,662.22 | 1,805,346,994.94 | 76,096,047,657.16 |
8. Statement of Changes in Owners' Equity of Parent Company
Amount of current period
Unit: RMB Yuan
Item | Year 2020 | |||||||||||
Capital stock | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profit | Others | Total owners’ equity | |||
Preferred share | Perpetual bond | Others | ||||||||||
I. Ending balance of previous year | 3,881,608,005.00 | 2,682,647,086.15 | 7,884,654,620.01 | 34,542,304,965.71 | 48,991,214,676.87 | |||||||
Plus: Changes in accounting policy | ||||||||||||
Correction of prior errors | ||||||||||||
Others | ||||||||||||
II. Beginning balance of current year | 3,881,608,005.00 | 2,682,647,086.15 | 7,884,654,620.01 | 34,542,304,965.71 | 48,991,214,676.87 | |||||||
III. Increase/decrease in the current period (decrease indicated with “-”) | 1,579,703,822.94 | 5,677,796,795.47 | 7,257,500,618.41 | |||||||||
(I) Total comprehensive income | 15,797,038,229.41 | 15,797,038,229.41 | ||||||||||
(II) Capital paid in and reduced by owners |
1. Common stocks invested by owners | ||||||||||||
2. Capital invested by other equity instrument holders | ||||||||||||
3. Amount of share-based payments recognized in owners' equity | ||||||||||||
4. Others | ||||||||||||
(III) Profit distribution | 1,579,703,822.94 | -10,119,241,433.94 | -8,539,537,611.00 | |||||||||
1. Withdrawal of surplus reserve | 1,579,703,822.94 | -1,579,703,822.94 | ||||||||||
2. Distribution to owners (or shareholders) | -8,539,537,611.00 | -8,539,537,611.00 | ||||||||||
3. Others | ||||||||||||
(IV) Internal transfer of owners' equity | ||||||||||||
1. Capital reserve transfer to paid-in capital (or capital stock) | ||||||||||||
2. Surplus reserve transfer to paid-in capital (or capital stock) | ||||||||||||
3. Recovery of losses by surplus reserve | ||||||||||||
4. Carry forward retained earnings in variation of |
defined benefit plan | ||||||||||||
5. Carry forward retained earnings of other comprehensive income | ||||||||||||
6. Others | ||||||||||||
(V) Special reserves | ||||||||||||
1. Withdrawal of current period | ||||||||||||
2. Use of current period | ||||||||||||
(VI) Others | ||||||||||||
IV. Ending balance of current period | 3,881,608,005.00 | 2,682,647,086.15 | 9,464,358,442.95 | 40,220,101,761.18 | 56,248,715,295.28 |
Amount of previous period
Unit: RMB Yuan
Item | Year 2019 | |||||||||||
Capital stock | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profit | Others | Total owners’ equity | |||
Preferred share | Perpetual bond | Others | ||||||||||
I. Ending balance of previous year | 3,881,608,005.00 | 2,682,647,086.15 | 6,652,731,832.83 | 30,053,733,489.62 | 43,270,720,413.60 | |||||||
Plus: Changes in accounting policy | ||||||||||||
Correction of prior errors | ||||||||||||
Others | ||||||||||||
II. Beginning balance of current year | 3,881,608,005.00 | 2,682,647,086.15 | 6,652,731,832.83 | 30,053,733,489.62 | 43,270,720,413.60 | |||||||
III. Increase/decrease in the current period (decrease indicated with “-”) | 1,231,922,787.18 | 4,488,571,476.09 | 5,720,494,263.27 | |||||||||
(I) Total comprehensive income | 12,319,227,871.77 | 12,319,227,871.77 | ||||||||||
(II) Capital paid in and reduced by owners | ||||||||||||
1. Common stocks invested by owners | ||||||||||||
2. Capital invested by |
other equity instrument holders | ||||||||||||
3. Amount of share-based payments recognized in owners' equity | ||||||||||||
4. Others | ||||||||||||
(III) Profit distribution | 1,231,922,787.18 | -7,830,656,395.68 | -6,598,733,608.50 | |||||||||
1. Withdrawal of surplus reserve | 1,231,922,787.18 | -1,231,922,787.18 | ||||||||||
2. Distribution to owners (or shareholders) | -6,598,733,608.50 | -6,598,733,608.50 | ||||||||||
3. Others | ||||||||||||
(IV) Internal transfer of owners' equity | ||||||||||||
1. Capital reserve transfer to paid-in capital (or capital stock) | ||||||||||||
2. Surplus reserve transfer to paid-in capital (or capital stock) | ||||||||||||
3. Recovery of losses by surplus reserve | ||||||||||||
4. Carry forward retained earnings in variation of defined benefit plan |
5. Carry forward retained earnings of other comprehensive income | ||||||||||||
6. Others | ||||||||||||
(V) Special reserves | ||||||||||||
1. Withdrawal of current period | ||||||||||||
2. Use of current period | ||||||||||||
(VI) Others | ||||||||||||
IV. Ending balance of current period | 3,881,608,005.00 | 2,682,647,086.15 | 7,884,654,620.01 | 34,542,304,965.71 | 48,991,214,676.87 |
III. Company Profile
1. Company history
Wuliangye Yibin Co., Ltd. (hereinafter referred to as "Company" and the "Company") is a companylimited by shares established by Sichuan Yibin Wuliangye Liquor Factory through fund raising onAugust 19, 1997 with the approval of Document CFH (1997) No.295 issued by Sichuan ProvincialPeople's Government. The Company is mainly engaged in the production and sales of "Wuliangye" andits series liquors, with a registered capital of RMB 3,795.96672 million and registered address: No.150,West Minjiang Road, Yibin, Sichuan.The Company issued 80 million common shares (in RMB) on-line by fixed price offering atShenzhen Stock Exchange on April 27, 1998. According to the resolution of the extraordinary generalmeeting in September 1999, the Company, based on the total capital stock of 320 million shares onJune 30, 1999, transferred capital reserve to increase capital stock, increasing 5 shares for every 10shares and the total capital stock after the conversion was changed to 480 million shares. TheCompany placed 31.2 million common shares (in RMB) to the original shareholders as approved by theDocument ZJGS (2001) No.6 issued by the China Securities Regulatory Commission. The total capitalstock after the placement was 511.2 million shares. In August 2001, the Company implemented theinterim distribution plan 2001 and issued 4 bonus shares and increased 3 shares for every 10 shares bytransferring capital reserve to capital stock, with 357.84 million bonus shares and shares transferredfrom capital reserve in total. The total capital stock after the issuance and translation was 869.04 millionshares. In April 2002, the Company implemented the distribution plan 2001 and issued 1 bonus shares,increased 2 shares by transferring capital reserve to capital stock, and distributed RMB 0.25 (taxinclusive) in cash for every 10 shares, with 260.712 million bonus shares in total. The total capital stockafter the issuance and translation was 1,129.752 million shares. In April 2003, the Companyimplemented the distribution plan 2002 and increased 2 shares for every 10 shares by transferringcapital reserve to capital stock for all shareholders, increasing the capital stock by 225.9504 millionshares. The total capital stock after the translation was 1,355.7024 million shares. In April 2004, theCompany implemented the distribution plan 2003 and issued 8 bonus shares and increased 2 sharesby transferring capital reserve to capital stock for every 10 shares, with 1,355.7024 million bonusshares in total. The total capital stock after the issuance and translation was 2,711.4048 million shares.On March 31, 2006, the Company carried out the shareholder structure reform and the shareholderstructure after the reform was as below: 1,817.7869 million shares for state-owned legal person, takingup 67.04% of the total share stock, 493.4 thousand shares for officers, taking up 0.02% of the totalshare stock, and 893.1245 million shares for other shareholders, taking up 32.94% of the total sharestock. The total capital stock remained 2,711.4048 million shares.In April 2007, the Company implemented the distribution plan 2006 and issued 4 bonus shares anddistributed RMB 0.60 (tax inclusive) in cash for every 10 shares, with 1,084.5619 million bonus sharesin total. The total capital stock after the issuance and distribution was 3,795.96672 million shares. OnApril 2, 2008, shares for state-owned legal person decreased by 416.5303 million shares due to theexercise of warrants and became 2,128.3714 million shares, taking up 56.07% of the total capital stock.Other shareholders held 1,667.5954 million shares, taking up 43.93% of the total capital stock.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders ofWuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission ofSichuan Province (CGZCQ (2012) No.88) and the Reply on Free Transfer of Shares Held byState-owned Shareholders of Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and
Administration Commission of the State Council (GZCQ (2012) No.889), Yibin State-Owned AssetsOperation Co., Ltd. (renamed as Yibin Development Holding Group Co., Ltd. in 2021) transferred761,823,343 shares held by it in the Company to Sichuan Yibin Wuliangye Group Co., Ltd. for free onOctober 10, 2012. After this free transfer of shares, Yibin Development Holding Group Co., Ltd. stillheld 36% shares of the Company (i.e. 1,366,548,020 shares) and was the first majority shareholder ofthe Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% shares of the Company (i.e.761,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye GroupCo., Ltd. (YGZW (2016) No.32), the State-owned Assets Supervision and Administration Commissionof Yibin Municipal Government transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co.,Ltd. to Yibin Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did notinvolve in the change of shares held by both parties in the Company, without changing the controllingshareholder and actual controller of the Company.According to the resolutions of the 11th meeting of the 5th board of directors, annual generalmeeting 2015, the 19th meeting of the 5th board of directors, the 24th meeting of the 5th board ofdirectors, and annual general meeting 2016 of the Company and as approved by the License ZJXK(2017) No.1910 issued by the China Securities Regulatory Commission, the Company issued85,641,285 shares by non-public offering by means of targeted issue on April 12, 2018. The total capitalstock after the issuance was 3,881.608 million shares, including 2128.3714 million shares forstate-owned legal person, taking up 54.83% of the total capital stock, and 1,753.2366 million shares forother shareholders, taking up 45.17% of the total capital stock.
According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd.(YGZW (2020) No.157), issued by Yibin State-owned Assets Supervision and AdministrationCommission, the transfer was approved in principle. On August 24, 2020, Yibin State-Owned AssetsOperation Co., Ltd. transferred 30,000,000 shares held by it in the Company to Wuliangye GroupCompany for free. After this free transfer of shares, Yibin State-Owned Assets Operation Co., Ltd. stillheld 34.43% shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholderof the Company; Wuliangye Group Company, holding 20.4% shares of the Company (i.e. 791,823,343shares), was the second majority shareholder of the Company. As a result of this transfer of shares,without changing the controlling shareholder and actual controller of the Company, Yibin State-OwnedAssets Operation Co., Ltd. remained the controlling shareholder of the Company, and YibinState-owned Assets Supervision and Administration Commission remained the actual controller of theCompany.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage manufacturing industry and its business scope is:
Production and operation of liquor products and relevant auxiliary products (bottle caps, trademarks,logos and packaging products). Its main products are "Wuliangye" and its series liquors.
3. Approval of financial statements
These financial statements have been reviewed and approved by the board of directors of theCompany on April 25, 2021, and will be submitted to the general meeting for review according to theArticles of Association.
4. Scope of consolidated financial statements of current year
As of December 31, 2020, subsidiaries included in the scope of consolidated financial statements
of the Company were:
Full name of subsidiary | Type of subsidiary | Tier | Shareholding proportion | Proportion of votes |
Sichuan Yibin Wuliangye Winery Co., Ltd. | Holding subsidiary | First-tier | 99.99% | 99.99% |
Yibin Wuliangye Liquor Sales Co., Ltd. | Holding subsidiary | First-tier | 95.00% | 95.00% |
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. | Holding subsidiary | Second-tier | 95.00% | 95.00% |
Yibin Wuliangchun Brand Marketing Co., Ltd | Holding subsidiary | Second-tier | 95.00% | 95.00% |
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. | Holding subsidiary | Second-tier | 95.00% | 95.00% |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | Holding subsidiary | First-tier | 99.95% | 99.95% |
Yibin Jiangjiu Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. | Holding subsidiary | First-tier | 51.00% | 51.00% |
Sichuan Jinwuxin Technology Co., Ltd. | Holding subsidiary | Second-tier | 51.00% | 51.00% |
Sichuan Jiebeike Environmental Technology Co., Ltd. | Holding subsidiary | Second-tier | 26.01% | 26.01% |
Yibin Changjiangyuan Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Yibin Changjiangyuan Trade Co., Ltd. | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Yibin Changjiangyuan Brewery Co., Ltd. | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Yibin Wuliangye Organic Agriculture Development Co., Ltd. | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Holding subsidiary | First-tier | 90.00% | 90.00% |
Yibin Xianlin Liquor Marketing Co., Ltd. | Holding subsidiary | Second-tier | 90.00% | 90.00% |
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. | Holding subsidiary | Second-tier | 42.30% | 42.30% |
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | Holding subsidiary | First-tier | 98.53% | 98.53% |
Yibin Xinxing Packaging Co., Ltd. | Holding subsidiary | Second-tier | 98.53% | 98.53% |
Sichuan Yibin Plastic Packaging Materials Company Limited | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Push Group 3D Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Guangdong Foshan Plastic Packaging Materials Company Limited | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd. | Holding subsidiary | First-tier | 95.00% | 95.00% |
Wuhou Cultural Development Co., Ltd. | Holding subsidiary | Second-tier | 70.30% | 70.30% |
Yibin Zhenwushan Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Yibin Shiji Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Yibin Cuipingshan Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Wuliangye Dashijie (Beijing) Trade Co., Ltd. | Holding subsidiary | First-tier | 95.00% | 95.00% |
Handan Yongbufenli Liquor Co., Ltd. | Holding subsidiary | First-tier | 51.00% | 51.00% |
Linzhang Desheng Wine Trade Co., Ltd. | Holding subsidiary | Second-tier | 51.00% | 51.00% |
Handan Yongbufenli Sales Co., Ltd. | Holding subsidiary | Second-tier | 51.00% | 51.00% |
Huaibin Wubin Consultation Service Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Wuguchun Jiu Ye Co., Henan. China | Holding subsidiary | Second-tier | 51.03% | 51.03% |
Huaibin Tenglong Trade Co., Ltd. | Holding subsidiary | Third-tier | 51.03% | 51.03% |
WU JIU YE SALES CO., HENAN. China | Holding subsidiary | Third-tier | 51.03% | 51.03% |
Sichuan Wuliangye Culture Tourism Development Co., Ltd. | Holding subsidiary | First-tier | 80.00% | 80.00% |
Sichuan Wuliangye Tourist Agency Co., Ltd. | Holding subsidiary | Second-tier | 80.00% | 80.00% |
Yibin Wuliangye Creart Co., Ltd. | Holding subsidiary | First-tier | 45.00% | 51.00% |
Wuliang NongXiang Series Baijiu Yibin Co., Ltd. | Holding subsidiary | First-tier | 95.00% | 95.00% |
Sichuan Wuliangye New Retail Management Co., Ltd. | Holding subsidiary | First-tier | 90.00% | 90.00% |
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for thescope of consolidated financial statements of current period and its changes.
IV. Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and therecognition and measurement are made at actual transactions and matters in accordance with theAccounting Standards for Business Enterprises-Basic Standards issued by the Ministry of Finance andthe specific Accounting Standards for Business Enterprise, Guidelines for Application of AccountingStandards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprisesand other relevant provisions (hereinafter referred to as “Accounting Standards for BusinessEnterprise”), combining with the Preparation Rules for Information Disclosure by Companies OfferingSecurities to the Public No. 15 - General Provisions on Financial Reports (2014 revision) issued byChina 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 reportingperiod, and there is no major event affecting the ability of going concern.V. Significant accounting policy and accounting estimates
Specific accounting policy and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimatesformulated by the Company according to the actual production and operation characteristics.
1. Note on compliance with Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of theAccounting Standards for Business Enterprises and truly and completely reflect the Company'sfinancial position, operating results, cash flows and other relevant information.
2. Accounting period
From January 1 to December 31 of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping currency
RMB is used as the bookkeeping currency and reporting currency of the Company.
5. Accounting methods for business combination involving enterprises under and not under
the same control
(1) Business combination involving enterprises under the same control
The assets and liabilities acquired by the combining party through business combination involvingenterprises under the same control are measured at the share of owner's equity of the combined partyin the book value on consolidated statements of the final controlling party on the combination date. Thedifference between the book value of the net assets obtained by the combining party and the bookvalue of consideration paid for the combination (or total par value of the shares issued) is adjustedagainst capital stock premium in the capital reserve; if the capital reserve is not sufficient for writingdown, the retained earnings shall be adjusted. All the direct costs incurred by the combining party forthe business combination shall be recorded into current profit/loss when incurred.
(2) Business combination involving enterprises not under the same control
In case of business combination involving enterprises not under the same control, the combinationcosts shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securitiesissued on the date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the same control achieved throughstep-by-step implementation of multiple transactions, related accounting treatment shall be carried outby distinguishing individual financial statements from consolidated financial statements:
① In the individual financial statements, the sum of book value of the equity investment held in theacquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shallbe taken as the initial cost of such investment; Where the equity held in the acquiree prior to the date ofacquisition involves other comprehensive income, the other comprehensive income related to suchinvestment shall be transferred to current investment income.
② In the consolidated financial statements, the equity held in the acquiree prior to the date ofacquisition shall be re-measured at the fair value of such equity on the date of acquisition, and thedifference between its fair value and its book value shall be recorded into the current investmentincome; Where the equity held in the acquiree prior to the date of acquisition involves othercomprehensive income, the other comprehensive income related to such investment shall betransferred to current investment income on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and otheradministrative expenses incurred by the acquirer for the business combination shall be recorded intocurrent profit/loss; the transaction expenses for issuing equity securities or debt securities by theacquirer as consideration of the combination shall be recorded into the initial recognition amount of theequity securities or debt securities.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the businesscombination involving enterprises not under the same control shall be measured at the fair value on thedate of acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of theacquiree's net identifiable assets obtained in the combination, the difference shall be recognized asgoodwill. Where the combination cost is less than the acquirer's interest in the fair value of theacquiree's net identifiable assets obtained in the combination, the acquirer shall first recheck the fair
values of the acquiree's identifiable assets, liabilities and contingent liabilities obtained in thecombination and the combination cost. Where the combination cost is still less than the acquirer'sinterest in the fair value of the acquiree’s net identifiable assets obtained in the combination, thedifference shall be recorded into the current profit/loss.
6. Methods for preparing consolidated financial statements
(1) Principles for determining the scope of consolidated financial statements:
The scope of consolidated financial statements is determined on the basis of control, including theCompany and the subsidiaries under its control. Control means that the Company has the power overthe invested company, gets variable return by participating in related activities of the invested companyand has the ability to influence the amount of the return by its power over the invested company.
(2) Methods for preparing consolidated financial statements:
The parent company shall prepare the consolidated financial statements based on its financialstatements and those of its subsidiaries and according to other relevant information. The share of thesubsidiaries in current profit/loss attributable to minority equity shall be presented in the consolidatedincome statement as "minority interest income" under the net profit. The share in currentcomprehensive income of the subsidiaries which is attributable to minority equity shall be presented inthe consolidated income statement as "total comprehensive income attributable to minorityshareholders" under the total other comprehensive income.
For subsidiaries and businesses of the parent company added by business combination involvingenterprises under the same control during the reporting period, the revenue, expenses, and profits ofsuch subsidiaries and businesses from the beginning to the end of the period of business combinationshall be recorded into the consolidated income statement. Cash flows of such subsidiary andbusinesses from the beginning to the end of the year of business combination shall be recorded into theconsolidated cash flow statement, and relevant items of the statements shall be adjusted throughcomparison of the statements, as if the reporting entity after the combination had been existing fromcontrol of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not underthe same control or other means, the revenue, expenses, and profits of such subsidiaries andbusinesses from the date of acquisition to the end of reporting period shall be recorded into theconsolidated income statement. Cash flows of such subsidiary from the date of acquisition to the end ofreporting period shall be recorded into the consolidated cash flow statement.
When the parent company disposes subsidiaries and businesses during the reporting period, therevenue, expenses, and profits of such subsidiary and business from beginning of the reporting periodto the date of disposal shall be recorded into the consolidated income statement; Cash flows of suchsubsidiary and business from beginning of the reporting period to the date of disposal shall be recordedinto the consolidated cash flow statement.
In the consolidated financial statements, when the Company acquires the equity held by theminority shareholders in the subsidiary, the difference between the long-term equity investmentobtained by acquiring minority equity and the share of the net assets to be enjoyed and continuouslycalculated from the date of acquisition or combination according to the new increase in shareholdingproportion shall be adjusted against the capital reserve (capital premium or capital stock premium). Ifthe capital reserve is not sufficient for writing down, the retained earnings shall be adjusted.
7. Classification of joint venture arrangements and accounting methods for joint operations
Joint venture arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture andowns its relevant assets and bears its relevant liabilities.The Company shall recognize the following items related to share of interests and treat themaccording to relevant Accounting Standards for Business Enterprise:
(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 liabilitiesaccording to the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of jointoperation;
(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 theCompany's share.
Refer to the Note "long-term equity investment" for the accounting policy of the Company forinvestments in joint venture.
8. Recognition criteria for cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at anytime; cash equivalents refer to the short-term (no more than three months since the date of acquisition)and highly liquid investments that are readily convertible into known amounts of cash and that aresubject to an insignificant risk of change in value.
9. Foreign currency transaction and foreign currency statement translation
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping currency at the benchmarkexchange rate (which is generally refers to the middle rate of the current foreign exchange ratepublished by the People's Bank of China, the same below) published by the People's Bank of China onthe transaction date; at the end of the period, foreign currency monetary items shall be translated at theending spot exchange rate; non-monetary items in foreign currency measured at historical cost shall betranslated at the spot exchange rate prevailing on the transaction date; monetary items in foreigncurrency and measured at the fair value shall be translated at the spot exchange rate prevailing on thedate of determining fair value. The difference arising from translation shall be recorded into theconstruction cost of relevant fixed assets if in connection with acquisition and construction of the fixedassets which has not yet reached its intended condition for use; shall be recorded into administrativeexpenses if incurring during the preparation period and not in connection with acquisition andconstruction of fixed assets; and shall be recorded into current financial expenses if incurring during theproduction and operation 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 balancesheet date; all items of owners’ equity, except for undistributed profit, shall be translated at the spotexchange rate at the time of incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rateon the date of transaction. The translation difference of the foreign currency financial statements arisingfrom the translation shall be separately presented under the owner's equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated atthe spot exchange rate on the date of incurrence of the cash flows.
10. Financial instruments
Financial instruments refer to any contract that gives rise to a financial asset of a party andfinancial liabilities 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 aparty of the financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) Thecontractual right to charge the cash flow of the financial assets is terminated; 2) The financial assetshave been transferred and the Company has transferred almost all risks and remuneration of thefinancial assets ownership to the transferee; and 3) The financial assets have been transferred and theCompany does neither transfer nor retain almost all risks and remuneration of the financial assetsownership but gives up the control over the financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (orpart thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognizethe assets to be received and the liabilities to be assumed on the date of transaction, or derecognizethe assets sold on the date of transaction.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flowcharacteristics of financial assets, the financial assets of the Company are classified into: financialassets measured at the amortized cost; financial assets at through other comprehensive income;financial assets at fair value through profit or loss.
1 ) Initial measurement of financial assets
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets atfair value through profit or loss, relevant transaction expenses shall be directly recorded into currentprofit or loss; for other categories of financial assets, relevant transaction expenses shall be recordedinto the initial recognition amount. For notes receivable and accounts receivable arising from sales ofgoods or provision of service which do not include or consider the compositions of major assets, theCompany shall take the consideration expected to be received as the initial recognition amount.
2 ) Subsequent measurement of financial assets
① Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtainingcontractual cash flow, and the characteristics of contractual cash flow of such financial assets arebasically the same as basic borrowing arrangement, namely the cash flow arising on a specific date,which are solely payments of principal and interest on the principal amount outstanding. The Companysubsequently measures such financial assets at amortized costs by effective interest method. The gainor loss from their amortization, impairment and derecognition shall be recorded into current profit orloss.
② Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receivingcontractual cash flow as well as selling, and the characteristics of contractual cash flow of such financialassets are basically the same as basic borrowing arrangement. Such financial assets shall bemeasured at fair value, with the changes recorded into other comprehensive income, but theimpairment loss, exchange gain or loss and interest revenue calculated by effective interest method
shall be recorded into current profit or loss. The accumulative gains or losses which are previouslyrecorded into other comprehensive income shall be transferred out from other comprehensive incomeand recorded into current profit or loss upon derecognition.
③ Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instrumentsmeasured at amortized cost and debt instruments at fair value through other comprehensive income asfinancial assets at fair value through profit or loss. For eliminating or significantly reducing accountingmismatch upon initial recognition, financial assets may be designated as financial assets at fair valuethrough profit or loss. Such financial assets shall be subsequently measured at fair value with allchanges in fair value recorded into current profit or loss. Only when the Company changes the businessmodel of managing financial assets, shall relevant financial assets being affected be reclassified.
④ Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financialassets at fair value through other comprehensive income upon initial recognition. The Company recordsrelevant dividends income into current profit or loss, with changes in fair value recorded into othercomprehensive income. The accumulative gains or losses which are previously recorded into othercomprehensive income shall be transferred from other comprehensive income to retained earningsinstead of current profit or loss upon derecognition of such financial 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 ownershipto the transferee, the financial assets shall be derecognized; if the Company retain almost all risks andremuneration of the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financialassets ownership but gives up the control over the financial assets, such financial assets shall bederecognized and the rights or obligations arising or retained during the transfer shall be separatelyrecognized as assets or liabilities; if control over the financial assets is retained, relevant financialassets shall be continuously recognized according to the extent of involving in the financial assetstransferred 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 andfinancial liabilities 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 initialmeasurement as the financial liabilities at fair value through profit or loss: ① This designation caneliminate or significantly reduce accounting mismatch; ② According to the risk management orinvestment strategy of the Company as stated in formal written document, the portfolio of financialliabilities or the portfolio of financial assets and financial liabilities is managed and evaluated on thebasis of fair value, and reported to the key management on the basis of this inside the Company; ③This financial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. Forfinancial liabilities at fair value through profit or loss, relevant transaction expenses shall be directlyrecorded into current profit or loss; relevant transaction expenses of financial liabilities measured atamortized cost shall be recorded into the initial recognition amount.
2) Subsequent measurement of financial liabilities
① Financial liabilities measured at amortized cost: The Company subsequently measures suchfinancial liabilities at amortized costs by effective interest method. The gain or loss from derecognitionor amortization shall be recorded into current profit/loss.
② Financial liabilities at fair value through profit or loss: Including trading financial liabilities(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair valuethrough profit or loss upon initial recognition.
Trading financial liabilities (including derivative instruments belonging to financial liabilities) shallbe subsequently measured at fair value (except for those concerning hedge accounting) with changesin fair value recorded into current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fairvalue arising from change of the credit risk of the Company shall be recorded into other comprehensiveincome; accumulative gain or loss previously recorded into other comprehensive income shall betransferred from other comprehensive income to retained earnings. Other changes in fair value shall berecorded into current profit or loss. If previous accounting treatment may cause or expand theaccounting mismatch in profit or loss, all gains or losses of such financial liabilities (including theamount affected by change in credit risk of the Company) shall be recorded into 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 liabilitiesshall be presented as net amount after offset in the balance sheet: The Company has the legal right tooffset the recognized amount and may exercise such legal right currently; the Company plans to settlewith net amount or realize the financial 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 inthe active market. For financial instruments without active market, the fair value shall be determined byvaluation technique. The Company shall adopt the valuation technique which is applicable in currentsituation and supported by sufficient available data and other information for valuation. The Companyshall choose inputs which are consistent with the characteristics of assets or liabilities considered bythe market participant in the transaction of relevant assets and liabilities, and give priority to relevantobservable inputs. If it is impossible or impractical to obtain relevant observable inputs, the Companymay use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortizedcost, investments in debt instruments at fair value through other comprehensive income, contract asset,lease receivables, loan commitment and financial guarantee contracts based on the expected creditloss.
The expected credit loss refers to the weighted average credit loss of financial instrumentsweighted by the risk of default. Credit loss refers to the difference between all contract cash flowsdiscounted by the Company at the original effective interest rate and receivable according to thecontract and all expected cash flows received, namely the present value of all cash shortage. Amongwhich, the financial assets purchased or originated that have suffered from credit impairment shall bediscounted at the effective interest rate of the financial assets after credit adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during theexpected lifetime of financial instruments due to defaults.
12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (if
the expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after thedate of balance sheet due to possible defaults of financial instruments and is an integral part of thelifetime expected credit loss.On the date of balance sheet, the Company measured the expected credit loss of financialinstruments at different stages, respectively. If the credit risk of a financial instrument has not increasedsignificantly since the initial recognition, the financial instrument is in the Stage 1, and the Companymeasures the provisions for loss according to the 12-month expected credit loss; if the credit risk of afinancial instrument has increased significantly but the credit impairment has not yet occurred since theinitial recognition, the financial instrument is in the Stage 2, and the Company measures the provisionsfor loss according to the lifetime expected credit losses; if the financial instrument has suffered creditimpairment since the initial recognition, it is in the Stage 3, and the Company measures the provisionsfor loss according to the lifetime expected credit loss.For a financial instrument with low credit risk on the date of balance sheet, the Company assumesthat the credit risk has not increased significantly since the initial recognition, and the Companymeasures the provisions for loss according to the 12-month expected credit loss.For financial instruments with low credit risk in the Stage 1 and Stage 2, the Company shallcalculate the interest revenue according to the book balance and effective interest rate beforededucting the provisions for impairment. For financial instruments in the Stage 3, the Company shallcalculate the interest revenue according to the amortized cost and effective interest rate of the bookbalance after withdrawing the provisions for impairment.For notes receivable and accounts receivable, regardless of whether there is a major financing, theCompany shall always consider all reasonable and sound information, including prospectiveinformation, to estimate expected credit loss of the above accounts receivable individually or incombination and adopt the simplified model of expected credit loss. The Company shall alwaysmeasure the provisions for loss according to the lifetime expected credit loss.
1) Accounts receivable
① If there is objective evidence indicating that impairment has occurred in an account receivable,impairment test shall be carried out separately on it, such as accounts receivable in dispute withcounterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is likelyto fail to comply with the repayment obligation, the impairment loss shall be recognized and the baddebt provisions shall be made based on the balance between the present value of future cash flows andits book value.
② If there is no objective evidence indicating that impairment or the credit loss of a single financialassets cannot be evaluated at reasonable cost, the accounts receivable shall be classified into severalgroups by characteristics of credit risk. The expected credit loss shall be calculated based on thecombinations. Basis for determining the combinations is as below:
Item | Determination basis |
Bank acceptance bill group | Bank acceptance bill |
Commercial acceptance bills group | Commercial acceptance bills |
Accounts receivable group | Receivables from related parties |
Accounts receivable group | External customer |
Other accounts receivable group | Receivables from and payables to related parties |
Other accounts receivable group | Reserve fund, deposits and other receivables with low credit risk |
Other accounts receivable group | Other amounts |
For accounts receivable divided into risk groups, the Company, with reference to historicalexperience in credit loss and based on current situation and forecast of future economic situation, shallprepared a comparison table between the aging of accounts receivable and the lifetime expected creditloss rate to calculate the expected credit losses. For other groups, the Company, with reference tohistorical experience in credit loss and based on current situation and forecast of future economicsituation, shall calculate the expected credit losses according to the exposure at default and the12-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 creditloss according to the nature of investment, types of counterparty and risk exposure, exposure at defaultand the 12-month or lifetime expected credit loss rate.
The Company shall record the provision or reversal for loss made or recorded into current profit orloss. For investment in debts instruments at fair value through other comprehensive income, theCompany shall adjust other comprehensive income when the impairment loss or gain is recorded intocurrent profit or loss; for financial assets measured at amortized cost, the provision for loss shall offsetthe book value of such financial assets.
Determination method and accounting treatment method for expected credit losses of otherreceivables
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finishedproducts, goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing liquor are measured at actual cost and pricedby weighted average method when sent out; paper, printing ink, and auxiliary materials for producingprinted matters are measured at planned cost when purchased and sent out, with the differencebetween actual cost and planned cost recorded into “materials cost difference”. The difference to beamortized by the materials sent out shall be calculated by materials cost difference by category at theend of the month, so as to adjust cost of the materials sent out into actual cost; goods in process,self-manufactured semi-finished products, and finished products are measured at actual cost andpriced by weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of inventoryfalling price reserves
On the date of balance sheet, the inventories shall be measured at the lower of cost and netrealizable value. If cost of the inventories is higher than the net realizable value, a provision forinventory falling price reserves shall be made and recorded into current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion,estimated selling 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 evidenceobtained and after taking into consideration the purpose for which the inventory is held, and the impact
of post-balance sheet events. Materials held for use in the production of inventories are measured atcost if the net realizable value of the finished products in which they will be incorporated is higher thantheir cost; decline in the price of materials indicates that the cost of the finished products exceeds theirnet realizable value, the materials are measured at net realizable value. The net realizable value ofinventory held to satisfy sales or service contracts is based on the contract price. If the quantities heldby an enterprise is higher than the quantities of inventories specified in sales contracts, the netrealizable 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 islower than the cost.
1) Market price of the inventory declines continuously and there is no hope of rising in theforeseeable future.
2) The cost of products produced by the Company with such raw materials is higher than theselling price of the product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade ofproducts, and the 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,or change 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-itembasis. For inventories in large amount and low unit price, provision for inventory falling price reservesmay be made by category of the inventories. For item of inventories relating to a product line that isproduced and marketed in the same geographical area, have the same or similar end uses or purposes,and cannot be practically measured separately from other items, provision for inventory falling pricereserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the date of balance sheet.When factors causing written-down of the inventory value disappear, the amount written down shall berecovered and will be reversed from the provided inventory falling price reserves. The amount reversedwill be recorded into current profit or loss.
(4) Inventory system
The inventory system is a perpetual inventory system.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
12. Contract asset and contract liability
Under the contract between the Company and the customer, the Company shall be entitled toreceive the contract price for the goods transferred to the customer and for the related servicesprovided, while at the same time assuming the performance obligation to transfer the goods or servicesto the customer. When the customer has actually paid the contract consideration or the enterprise hastransferred goods or services to the customer before such consideration is due and payable, the right toreceive the consideration for the transferred goods or services should be presented as a contract assetand recognized as an accounts receivable when the unconditional right to receive is obtained;conversely, the Company's obligation to transfer goods or services to the customer for theconsideration 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 or provide services to the customer. The Company presents contract asset and contract liabilityunder the same contract on a net basis.
13. Assets held for sale
(1) Classification of non-current assets or disposal groups held for saleThe Company classifies non-current assets or disposal groups that meet both of the followingconditions as assets held for sale: 1) Assets or disposal groups can be sold immediately under currentconditions based on the practice 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 andobtained a certain purchase commitment, and the sale is expected to be completed within one year.Non-current assets or disposal groups specifically obtained by the Company for resale shall beclassified by the Company as held-for-sale on the acquisition date when they meet the stipulatedconditions of “expected to be sold within one year” on the acquisition date, and may well satisfy thecategory of held-for-sale within a short time (which is usually 3 months).If the transaction between non-related parties fails to be completed within one year due to one ofthe following circumstances which is over the control of the Company, and the Company still promisesto sell the non-current assets or disposal groups, the Company should continue to classify thenon-current assets or disposal groups as held-for-sale: 1) The purchaser or other party unexpectedlysets conditions that lead to extension of the sale. The Company has already acted on these conditionsin a timely manner and it is expected to be able to successfully deal with the conditions that led to theextension of the sale within one year after the conditions were set; 2) Due to unusual circumstances,the non-current assets or disposal groups held-for-sale failed to be sold within one year. In the first year,the Company has taken necessary measures for these new conditions and the assets or disposalgroups meet the conditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups heldfor sale on the date of balance sheet, if the book value is higher than the fair value minus the netamount of the sale costs, the book value will be written down to the net amount of fair value minus thesale costs. The amount written down will be recognized as asset impairment loss and recorded intocurrent profit and loss, and provision for impairment of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall bemeasured at the lower of net amount of initial measurement amount minus sales cost and that of fairvalue minus selling expenses, assuming they were not classified as held-for-sale during initialmeasurement. Except for non-current assets or disposal groups acquired from business combination,the difference arising from taking the net amount of fair value minus sales cost as initial measurementamount of the non-current assets or disposal groups shall be recorded into current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the bookvalue of goodwill of the disposal groups shall be offset first, and then the book value of variousnon-current assets in the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject todepreciation or amortization. Interest and other expenses of liabilities in the disposal group held for saleshall 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 balancesheet date minus the sale costs increases, the previous written-down amount will be restored andreversed from the asset impairment loss recognized after the assets being classified as held-for-sale.The reversed amount shall be recorded into the current profit or loss. The asset impairment lossrecognized before being classified as held-for-sale shall not be reversed.If the net amount that the fair value of the disposal groups held for sale on the follow-up balancesheet date minus the sale costs increases, the previous written-down amount will be restored andreversed from the asset impairment loss recognized for non-current assets after the assets beingclassified as held-for-sale. The reversed amount will be recorded into the current profit or loss. Thebook value of goodwill which had been written down and the asset impairment loss recognized beforebeing 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 isreserved subsequently, the book value shall be increased according to the proportion of book value ofvarious 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 anon-current asset is removed out from the disposal group held for sale due to failure in meeting theclassification conditions for the category of held-for-sale, it will be measured by one of the followings,whichever is lower: ① Amount after adjusting the book value before being classified as held for saleaccording to the depreciation, amortization or impairment that would have been recognized under theassumption that it was not classified as held for sale; ② The recoverable amount.
The gain or loss not yet recognized shall be recorded into current profit or loss when recognizingthe non-current assets or disposal groups held for sale.
14. Long-term equity investment
(1) Determination of initial investment cost
① Long-term equity investment from business combination
1) For the long-term equity investment in subsidiaries acquired through business combinationinvolving enterprises under the same control, the share of the book value of the owners’ equity of thecombined party in the ultimate controller’s consolidated financial statements on the date of combinationshall be taken as the initial investment cost of the long-term equity investment. The capital stockpremium of the capital reserve shall be adjusted with the difference between the initial investment costof the long-term equity investment and the book value of the consideration paid; If the capital stockpremium of the capital reserve is insufficient for writing down, the retained earnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinationsinvolving enterprises not under the same control, initial investment cost of the investment shall be thefair value of the assets paid, liabilities incurred or assumed and equity securities issued by theCompany in exchange for control over the acquiree on the date of acquisition. For long-term equityinvestment in subsidiaries acquired through business combination involving enterprises not under thesame control implemented by multiple transactions, the initial investment cost shall be the sum of thebook value of equity investment held by the Company in the acquiree before the date of acquisition andthe cost of new investment on the date of acquisition.
② For long-term equity investment acquired by cash payment, the initial investment cost shall bethe purchase price actually paid. The initial investment cost includes fees, taxes and other necessary
expenses directly related to acquire the long-term equity investment.
③ For long-term equity investment acquired by issuing equity securities, the initial investment costof long-term equity investment obtained by issuing of equity securities shall be the fair value of issuingthe equity securities.
④ The initial investment cost of long-term equity investment obtained by the exchange ofnon-monetary assets shall be the fair value of the assets surrendered and relevant taxes payable if theexchange of non-monetary assets has commercial nature and the fair value of the assets received orsurrendered may be reliably measured, unless there is conclusive evidence providing that fair value ofthe assets received is more reliable; For exchange of non-monetary assets not meeting the aboveconditions, the initial investment cost shall be the book value of the assets surrendered and relevanttaxes payable.
⑤ The initial investment cost of a long-term equity investment obtained by debt restructuring shallbe recognized 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 oflong-term equity investment shall be adjusted when the investment is added or recovered. The cashdividends or profits declared to be distributed by the invested company should be recognized as currentinvestment income.
The long-term equity investment in associates and joint ventures is accounted by the equitymethod.
If the initial cost of long-term equity investment is greater than the fair value of identifiable netassets of the invested company gained from the investment, the initial cost of long-term equityinvestment shall not be adjusted; If the initial investment cost is smaller than the fair value of identifiablenet assets of the invested company gained from the investment, the difference shall be recorded intocurrent profit or loss, and the cost of long-term equity investments shall be adjusted.
After the Company obtains a long-term equity investment, it shall, in accordance with the share ofthe net profits and other comprehensive income of the invested company to be enjoyed or shared,recognize the investment income and other comprehensive income respectively, and adjust the bookvalue of the long-term equity investment. The Company shall, in accordance with the share in the profitsor cash dividends declared and distributed by the invested company, decrease the book value of thelong-term equity investment accordingly.
As for other changes in owners’ equity except for the net profit and loss, other comprehensiveincome and profit distribution of the invested company, the Company shall adjust the book value of thelong-term equity investment and record it into the owners’ equity. When the share of the net profit orloss of the invested company is recognized, the net profit of the invested company shall be adjustedand recognized according to the fair value of the net identifiable assets of the invested company whenthe investment is made.
For the transactions between the Company and associates and joint ventures, the unrealized gainsand losses of the internal transactions shall be offset by the proportion attributable to the Company, andthe investment income is recognized accordingly. The unrealized loss of internal transactions incurredby the Company and the invested company attributable to asset impairment loss shall not be offset.
The Company shall recognize the net losses of the invested company until the book value of the
long-term equity investment and other long-term rights and interests which substantially form the netinvestment made to the invested company are reduced to zero, unless the Company has the obligationto undertake extra losses. If the invested company realizes a net profit in the subsequent period, theCompany shall restore the recognition of its share in profits after its share in profits offsets the share inunrecognized losses.
If the accounting policy and accounting period adopted by the invested company is inconsistentwith those adopted he Company, financial statements of the invested company shall be adjusted andinvestment income and other comprehensive income shall be recognized according to the accountingpolicy and accounting period of the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the book value and the actualprice at which the investment is obtained shall be recorded into current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investmentoriginally recorded into other comprehensive income shall be accounted for on the same basis as theinvested company’s direct disposal of the relevant assets or liabilities when disposed. The owners’equity recognized as a result of changes in other owners’ equity other than net profit or loss, othercomprehensive income, and profit distribution of the invested company is carried forward proportionallyinto current profit or loss, except for other comprehensive income arising from changes due toremeasurement 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 disposalof part of the equity investments, residual equity will be accounted by the recognition and measurementcriterion for financial instruments. The difference between the fair value on the date of losing commoncontrol or significant influence and the book value shall be recorded into current profit or loss. Othercomprehensive income recognized due to accounting of the original equity investment by equitymethod shall be accounted for on the same basis as the invested company’s direct disposal of therelevant assets or liabilities when stop using equity method. Owner’s equity recognized due to otherchanges in other owners’ equity other than the net profit or loss, other comprehensive income and profitdistribution of the invested company will all be carried forward into current profit or loss when stop usingequity method.
If the Company disposes of part of the equity investment and loses control over the investedcompany, and if the remaining equity after disposal can implement joint control or exert significantinfluence on the invested company, it shall be accounted for using the equity method when theindividual financial statements are prepared, and the equity shall be adjusted as if the remaining equityhad been accounted for using the equity method since acquired; if the remaining equity after disposalcannot implement joint control or exert significant influence on the invested company, it shall be subjectto accounting treatment in accordance with the relevant provisions of the criteria for recognition andmeasurement of financial instruments. The difference between the fair value and the book value on thedate 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 asadditional investment, the remaining equities after the disposal shall be calculated based on the costmethod or equity method in preparing the individual financial statements, and other comprehensiveincome and other owners' equity recognized because of the equity method adopted for the calculationof the equity investment held prior to the purchase date are carried forward in proportion; if the
remaining equities after the disposal shall be changed to be accounted in accordance with therecognition and measurement criterion for financial instruments, other comprehensive income andother 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 the decision-making for relevant activities of such arrangement needs unanimous agreement of allparticipants sharing the 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 formulationof these policies together with other parties.
15. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services,renting or operation and management and with service life more than one year and high unit value.Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, andother expenditure incurred before and for making the fixed assets reaching its intended condition foruse directly attributable to such assets. Book value of self-constructed fixed assets shall be thenecessary expenditures incurred before and for making the fixed assets reaching its intended conditionfor 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 recorded into the cost of fixed assets ifmeeting the recognition conditions for fixed assets, and shall be recorded into current profit or loss if notmeeting the recognition conditions for fixed assets.
(2) Depreciation method
Category | Depreciation method | Depreciation life | Residual rate | Yearly depreciation rate |
Houses 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% |
Special equipment | Straight-line method | 8 years | 3% -5% | 11.18 - 12.13% |
Transportation equipment | Straight-line method | 6 years | 3% -5% | 15.83 - 16.17% |
Other equipment | Straight-line method | 6 years | 3% -5% | 15.83 - 16.17% |
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using thestraight-line method (the straight-line depreciation) from the second month after they reach theirintended serviceable condition.
(3) Recognition basis, valuation and depreciation methods of fixed assets under financing
lease
The fixed assets under financing lease are recognized if one of the following conditions is specifiedby the Company and the leaser in their lease agreement: ① Upon the expiration of the lease term,the ownership of the leased asset belongs to the Company; ② The Company has the option topurchase the asset and the purchase price is far lower than the fair value of such asset at the time ofexercising the option; ③ The lease term covers most of the useful life of the leased asset; ④ There
is no large difference between the present value of the minimum lease payments on thecommencement date of lease and fair value of the assets. On the commencement date of lease, bookvalue of the leased assets is the lower of the fair value of the leased assets and the present value of theminimum lease payments, and minimum lease payments shall be taken as the book value of thelong-term payables, with the difference recognized as unrecognized financing costs.
16. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary expendituresincurred before the assets reaching its intended condition for use.
(2) Cost of fixed assets that have reached the intended condition for use but for which thecompletion settlement has not been handled shall be recognized at the estimated value, anddepreciation shall be provided; Adjustment shall be made to the originally and provisionally estimatedvalue based on the actual cost after the completion settlement is handled, but depreciation alreadyprovided shall not be adjusted.
17. 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 conditionsof capitalization period and capitalization amount should be capitalized and recorded into the cost ofsuch assets; other interest of borrowings, and amortization of discounts or premiums shall be recordedinto expenses in current period. The exchange differences incurred from special foreign currencyborrowings for acquisition and construction or production of fixed assets and investment propertiesshall be capitalized and recorded into the cost of such assets if it is within the capitalization period.Auxiliary expenses for special borrowings, if incurred before the fixed assets acquired or constructedreaching the intended condition for use, shall be capitalized at the time of occurrence; other auxiliaryexpenses shall be recognized as expenses in current period and recorded into current profit or loss.
(2) Capitalization period of borrowing costs:
① Commencement of capitalisation: Capitalization of borrowing interest, amortization of discountor premium, 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 conditionfor use have already begun.
② Suspension of capitalisation: Where the acquisition and construction of a fixed asset isinterrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended and the borrowing costs shall be recognized as current expensesuntil recommencement of the acquisition and construction of the asset.
③ Termination of capitalization: When the fixed assets acquired and constructed reach theintended condition 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 theamount of interest expenses actually incurred in the current period less the interest revenue of theborrowings unused and deposited in bank or the amount of investment income from temporary
investment. Interest of general borrowings to be capitalized should be calculated by multiplying theweighted average of asset disbursements of the excess of accumulated asset disbursements over thespecial 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.
18. Intangible assets
(1) Valuation method, service life and impairment test
① Valuation and amortization of intangible assets: Externally acquired intangible assets shall bemeasured at the actual cost when acquired and averagely amortized during the expected service lifesince the month when the intangible assets is acquired; book value of the self-developed intangibleassets shall be the sum of the expenditures during the research and development stage of internalresearch 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 overthe expected service life since the month in which the intangible asset is ready for use.
② Service life: Service life of intangible assets shall be analyzed and determined when acquired.Intangible assets with limited service life shall be amortized over period during which they may bringeconomic interests; if the period during which the intangible assets may bring economic benefit to theenterprise is unforeseeable, such intangible assets shall be considered as intangible assets withuncertain service life and shall not be amortized.
③ Impairment test: At the end of each year, the Company shall recheck the service life andamortization method of the intangible assets. Intangible assets with uncertain service life shall besubject to impairment test every year whether there is any indication of impairment.
(2) Accounting policy for internal research and development expenditures
The expenditures of the Company’s internal research and development projects are divided intoresearch phase expenditures and development phase expenditures.
Research phase expenditures shall be recorded into current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets onlywhen meeting all of the following conditions, otherwise shall be recorded into current profit or loss whenincurred:
① It is technically feasible to complete this intangible assets so that it can be used or sold.
② Have the intention to complete the intangible assets and use or sell them.
③ The way in which intangible assets generate economic benefits, including the ability to provethat the products produced using the intangible assets exist in the market or the intangible assetsthemselves exist in the market, and the intangible assets will be used internally, can prove theirusefulness; Sufficient technical, financial resources and other resources support to complete thedevelopment of the intangible asset and the ability to use or sell the intangible asset; the expenditureattributable to the development stage of the intangible asset can be reliably measured.
19. 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,an impairment test shall be conducted on the date of balance sheet. If the recoverable amount of theasset is less than its book value according to the test, provision for impairment will be made at the
difference and recorded into impairment loss. Recoverable amount is the higher of the net amount offair value of an asset deducting the disposal expenses and the present value of estimated future cashflow of the asset. The provision for impairment of assets is calculated and made on an individual basis.If it is difficult for the Company to estimate the recoverable amount of the individual asset, therecoverable amount of an asset group, to which the said asset belongs, shall be determined. Assetgroup 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 testshall be carried out in combination with the relevant asset group or combination of asset group.The book value of goodwill caused by business combination is amortized to relevant asset groupswith a reasonable method from the date of acquisition when the Company carries out impairment teston goodwill; or amortized to relevant combination of asset groups if it is difficult to be amortized torelevant asset groups. When the book value of goodwill is amortized to the relevant assets group orcombination of assets groups, it shall be evenly amortized according to the proportion of the fair valueof each assets group or combination of assets groups in the total fair value of the relevant assetsgroups or combinations of assets groups. Where the fair value cannot be reliably measured, it shouldbe amortized according to the proportion of the book value of each asset group or combination ofassets groups in the total book value of assets groups or combinations of assets groups.When making an impairment test on the relevant assets groups or combination of assets groupscontaining goodwill, if any indication shows that the assets groups or combinations of assets groupsmay be impaired, the Company shall first conduct an impairment test on the assets groups orcombinations of assets groups not containing goodwill, calculate the recoverable amount and compareit with relevant book value to recognize the corresponding impairment loss. Then the Company shallconduct an impairment test on the assets groups or combinations of assets groups containing goodwill,and compare the book value of these assets groups or combinations of assets groups (including thebook value of the goodwill apportioned thereto) with the recoverable amount. Where the recoverableamount of the relevant assets groups or combinations of assets groups is lower than the book valuethereof, the Company shall recognize the impairment loss of goodwill.The above asset impairment losses shall not be reversed in subsequent accounting periods oncerecognized.
20. Long-term deferred expenses
Long-term deferred expenses is recorded according to the actual amount incurred and amortizedover the benefit period or the stipulated amortization period by the straight-line method. If a long-termdeferred expense item cannot benefit a later accounting period, the amortized value of the item that hasnot been amortized shall be transferred to the current profit or loss; long-term deferred expenses suchas expenditure for improvement of fixed assets under operating lease shall be amortized averagelywithin the benefit period.
21. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation refers to the payroll which is expected to be paid in full by the enterprisewithin 12 months 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-termcompensation is recognized as liabilities and recorded into current profit or loss or costs of relevantassets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by theenterprise after retirement from or termination of the labor relation with the enterprise in exchange forthe service provided by the employee. Post-employment benefits are divided into two types: Definedcontribution plans and defined benefit plans.
① Defined contribution plan: Contribution which shall be made by the Company separately on thedate of balance sheet in exchange for the service provided by the employee during the accountingperiod shall be recognized as payroll liabilities and recorded into current profit or loss or relevant assetcost.
② Defined benefit plan: Based on the formula determined by expected cumulative welfare unitmethod, the benefit obligations arising from the defined benefit plan shall be attributable to the period inwhich the employee provides service and recorded into current profit or loss or cost of relevant asset;changes due to remeasurement of the net liabilities or net assets of the defined benefit plan shall berecorded into other comprehensive income and shall not be reversed to profit or loss in subsequentaccounting periods.
(3) Accounting treatment of dismission benefits
Dismission benefits refers to the compensation paid to the employee by the enterprise fortermination of the labor contract with the employee prior to expiration, or encouraging the employee toaccept downsizing voluntarily.
If the enterprise provides dismission benefits, payroll liabilities arising from dismission benefitsshall be recognized and recorded into current profit or loss on the earlier date of:
① The date when the enterprise could not unilaterally withdraw the dismission benefits whichoffered by the plan or layoff proposal due to termination of the labor relation.
② The date when the enterprise recognizes the cost or expense related to the reorganizationrelated to payment of the dismission 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 dismission benefits, including long-term paid absences, long-termdisability benefits, long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized andmeasured as net liability or net asset of other long-term employee benefits according to relevantprovisions of the defined benefit plan, except for those meetings the conditions of defined contributionplan.
22. Estimated liabilities
(1) Recognition criteria for estimated liabilities
When obligations related to contingencies meet the following conditions, the Company shallrecognize them as estimated liabilities:
① The obligation is the current obligation assumed by the Company.
② The performance of this obligation may result in the outflow of economic benefits.
③ The amount of this obligation can be reliably measured.
(2) Measurement method of estimated liabilities
Considering the risks, uncertainties, and time value of money related to contingencies, the
estimated liabilities shall be initially measured at the best estimate of the required expenditure for theperformance of current obligation. If the time value of money is significant, the best estimate shall bedetermined after discounting relevant future cash outflow. The Company shall check the book value ofthe estimated liabilities on the date of balance sheet, and adjust the book value to reflect current bestestimate.
23. Revenue
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities thatwould result in an increase in shareholders' equity and are unrelated to capital contributions byshareholders.The Company recognizes revenue when it has fulfilled its performance obligations under thecontract, that is, when the customer obtains control of the relevant goods. Obtaining control over relatedgoods means being able to dominate the use of the goods and obtain almost all economic benefits fromthem.
If the contract contains two or more performance obligations, the Company will allocate thetransaction price to each individual performance obligation according to the relative proportion of theindividual selling price of the goods or services promised under each individual performance obligationon the contract commencement date, and measure the revenue according to the transaction priceallocated to each individual performance obligation.
Transaction price is the amount of consideration that the Company is expected to bereceived due to the transfer of goods or services to customers, excluding the amount collectedon behalf of third parties. In determining the transaction price of a contract, if variable considerationexists, the Company will determine the best estimate of the variable consideration based on theexpected or most likely amount and include in the transaction price in an amount not exceeding theamount that the accumulated recognized revenue will most likely not be significantly reversed when therelevant uncertainty is eliminated. If there is a significant financing component in the contract, theCompany will determine the transaction price according to the amount payable by the customer in cashwhen obtaining the control right of the goods. The difference between the transaction price and thecontract consideration will be amortized by the effective interest rate method during the contract period.If the interval between the transfer of control right and the payment price by the customer does notexceed 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:
① The customer acquires and consumes the economic benefits of the Company's performance atthe same time as the Company's performance;
② The customer controls the goods under construction during the performance of the Company;
③ The goods produced by the Company during the performance of the contract have irreplaceableuses, and the Company has the right to collect money for the accumulated performance that has beencompleted so far during the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenueaccording to the performance progress within that period, except that the performance progress cannotbe reasonably determined. The Company determines the performance progress of the servicesprovided according to the input method (or output method). When the performance progress cannot be
reasonably determined, if the costs incurred by the Company are expected to be compensated, therevenue shall be recognized according to the amount of costs incurred until the performance progresscan be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenueat the point when the customer obtains control of the relevant goods. When judging whether thecustomer has acquired control of goods or services, the Company will consider the followingindications:
① The Company has a present right to receive payment for the goods or services, i.e. thecustomer has a present obligation to pay for the goods;
② The Company has transferred legal ownership of the goods to the customer, i.e. the customerhas legal ownership of the goods;
③ The Company has physically transferred the goods to the customer, i.e. the customer has takenphysical possession of the goods;
④ The Company has transferred to the customer the principal risks and rewards of ownership ofthe goods, i.e., the customer has acquired the principal risks and rewards of ownership of the good;
⑤ The customer has accepted the goods.
(2) Recognition methods of revenues
① Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goodsto the buyer according to the contract, and recognizes revenue after the buyer signs for it;
② Recognition methods of revenues for direct sales model
Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyerand receives payment or acquires the right to receive payment;
On-line sales; Revenue is recognized when the Company receives the payment transferred fromthe e-commerce platform from the consumer;
24. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by theCompany and used for acquisition or construction or for formation of long-term assets in other ways,including the financial allocation for purchasing fixed assets or intangible assets, the financial discountfor special loan of fixed assets and others.
The specific standard of the Company for classifying the government subsidies as asset-relatedsubsidies: government subsidies obtained by the Company and used for acquisition or construction orfor formation of long-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Companyclassifies the government subsidies as asset-related subsidies or income-related subsidies were asfollows: Whether the subsidies are used for acquisition or construction or for formation of long-termassets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Governmentsubsidies, when actually received, shall be recognized as deferred income and transferred equally tocurrent profit or loss based on the expected service life of the long-term assets when the long-termassets are available for use.
The asset-related government subsidies are recognized as deferred income, and recorded intocurrent profit or loss by stages based on the service life of the assets acquired and constructed. If therelated asset is sold, transferred, scrapped or damaged before the end of the service life, the deferredincome balance not yet distributed shall be transferred to the profits and losses of the period in whichthe assets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsides other than asset-relatedgovernment subsidies.
The specific standard of the Company for classifying the government subsidies as income-relatedsubsidies: all the government subsides other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Governmentsubsidies, when actually received, shall be recorded into current profit or loss if used to compensate therelevant expenses or losses of the Company in the subsequent period; recorded into current profit orloss directly when acquired if used to compensate relevant expenses or losses incurred by theCompany.
Income-related government subsidies used to compensate the relevant expenses or losses of theCompany in the subsequent period shall be recognized as deferred income when acquired; recordedinto current profit or loss in the period in which relevant expenses are recognized; those used tocompensate relevant expenses or losses incurred by the Company, shall be directly recorded into profitor loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be recorded into otherincomes or used to offset relevant costs and expenses according to the substance of the economicbusiness. The government subsidies irrelevant with the daily activities of the Company shall berecorded into non-operating revenue.
25. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognizedaccording to the difference (temporary difference) between the tax base and book value of the assetsand liabilities. Deductible losses that can be carried forward to the subsequent year to offset taxableincome according to the tax law shall be considered as temporary difference, and correspondingdeferred income tax assets shall be recognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferredincome tax liabilities shall not be recognized. For the temporary differences related to the initialrecognition of the assets or liabilities incurred in the transaction not for business combination that willnot affect the accounting profits and taxable income (or deductible losses), corresponding deferredincome tax assets and deferred income tax liabilities shall not be recognized. The deferred income taxassets and deferred income tax liabilities are measured on the date of balance sheet according to theapplicable tax rate in the period of expected recovery of relevant assets or liquidation of relevantliabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which theCompany may obtain for deducting deductible temporary differences, deductible losses and taxdeduction. Deferred income tax assets and deferred income tax liabilities arising from temporarydifferences related to the investment in subsidiaries and associates shall be recognized. If the time ofreversal of temporary differences can be controlled by the Company and the temporary differences are
likely to not be reversed in the foreseeable future, deferred income tax assets and liabilities shall not berecognized.
26. Lease
(1) Accounting treatment of operating lease
① The rents paid by the Company for leased assets are amortized with the straight-line method inthe whole lease term without deducting the rent-free period and recorded into current expenses. Initialdirect costs related to leasing transaction and paid by the Company shall be recorded into currentexpenses.Where an asset lessor has assumed the lease-related costs that should be assumed by theCompany, the Company shall deduct such costs from the total rents, and the rents remained after suchdeduction shall be amortized in the lease term and recorded into current expenses.
② The rents received by the Company for leasing assets are apportioned on a straight-line basisover the entire lease term without deducting the rent-free period and are recognized as lease revenue.The initial direct costs related to lease transactions paid by the Company shall be included in thecurrent expenses; if the amount is larger, they shall be capitalized and recorded into the currentrevenue on the same basis as the recognition of lease revenue during the entire lease term.
Where the Company has assumed the lease-related costs that should be assumed by the leasee,the Company shall deduct such costs from the total lease revenue, and the rents remained after suchdeduction shall be amortized in the lease term.
(2) Accounting treatment of financial lease
① Assets leased in under financial leases: On the commencement date of lease, book value of theleased assets is the lower of the fair value of the leased assets and the present value of the minimumlease payments, and minimum lease payments shall be taken as the book value of the long-termpayables, with the difference recognized as unrecognized financing costs. The Company adopts theeffective interest rate method for unrecognized financing charges, which shall be amortized over thelease term and recorded into financial expenses. The Company records the initial direct expenses inthe values of leased assets.
② Assets leased out under finance leases: On the commencement date of lease, the Companyshall recognize the difference between the sum of the financial lease receivables and unguaranteedresidual values and its present value as unrealized financing income, and as lease revenue in any leaseperiod in the future when the rents are received. The initial direct expenses incurred by the Company inrelation to the lease transaction shall be recorded into the initial measurement of the financial leasereceivable and the amount of revenue recognized during the lease period shall be reduced.
27. Changes in significant accounting policy and accounting estimates
(1) Changes in significant accounting policy
√ Applicable □ Not applicable
Content and reason of changes in accounting policy | Approval procedures | Remarks |
On July 5, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No.14 - Revenue (CK (2017) No.22), (hereinafter referred to as the "New Revenue Standards"), | According to the provisions for transition from the old standards to the new standards, information of the comparable period is not adjusted, and the beginning retained earnings or other |
requiring enterprises which were simultaneously listed abroad and at home and which were listed abroad and prepared their financial statements according to the International Financial Reporting Standards (IFRS) or the Accounting Standards for Business Enterprises (ASBE) to implement such standards since January 1, 2018; and other domestic listed companies to implement such standards since January 1, 2020. | comprehensive income of the reporting period will be adjusted retroactively for the difference between the new standards and the original standards on the date of initial implementation. Refer to the Note “V. Significant accounting policy and accounting estimates, 27, (3) Adjustment of relevant items in financial statements at the beginning of the implementation year as a result of initial implementation of new revenue standards” for details about impact on the Financial Statements 2019 |
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the initial
implementation year as a result of initial implementation of new revenue standards from2020ApplicableWhether it is necessary to adjust the balance sheet account at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB Yuan
Item | December 31, 2019 | January 1, 2020 | Amount of adjustment |
Current assets: | |||
Cash and cash equivalents | 63,238,825,723.79 | 63,238,825,723.79 | |
Settlement reserves | |||
Capital lent | |||
Trading financial assets | |||
Derivative financial assets | |||
Notes receivable | 14,643,149,595.72 | 14,643,149,595.72 | |
Accounts receivable | 134,449,693.03 | 134,449,693.03 | |
Accounts receivable financing | 3,450,166,659.06 | 3,450,166,659.06 | |
Prepayments | 231,909,140.09 | 231,909,140.09 | |
Premium receivable |
Reinsurance receivables | |||
Contract reserve of reinsurance | |||
Other receivables | 1,248,644,572.40 | 1,248,644,572.40 | |
Including: Interest receivable | 1,215,275,214.91 | 1,215,275,214.91 | |
Dividends receivable | |||
Purchase restituted finance asset | |||
Inventory | 13,679,619,615.41 | 13,679,619,615.41 | |
Contract asset | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | |||
Total current assets | 96,626,764,999.50 | 96,626,764,999.50 | |
Non-current assets: | |||
Loans and advances | |||
Debt investment | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investment | 1,021,778,731.59 | 1,021,778,731.59 | |
Other equity instrument investment | |||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | |
Investment properties | |||
Fixed assets | 6,108,745,912.72 | 6,108,745,912.72 |
Construction in progress | 812,428,248.30 | 812,428,248.30 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 410,155,227.81 | 410,155,227.81 | |
Development expenditures | |||
Goodwill | 1,621,619.53 | 1,621,619.53 | |
Long-term deferred expenses | 91,601,331.96 | 91,601,331.96 | |
Deferred income tax assets | 1,157,391,979.00 | 1,157,391,979.00 | |
Other non-current assets | 165,284,283.25 | 165,284,283.25 | |
Total non-current assets | 9,770,207,334.16 | 9,770,207,334.16 | |
Total assets | 106,396,972,333.66 | 106,396,972,333.66 | |
Current liabilities: | |||
Short-term loans | |||
Loan from central bank | |||
Capital borrowed | |||
Trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | 419,485,425.61 | 419,485,425.61 | |
Accounts payable | 3,257,672,975.56 | 3,257,672,975.56 | |
Accounts received in advance | 12,530,706,854.77 | 21,782,796.70 | -12,508,924,058.07 |
Contract liability | 11,078,218,239.27 | 11,078,218,239.27 | |
Selling financial asset of repurchase | |||
Absorbing deposit and interbank |
deposit | |||
Security trading of agency | |||
Security sales of agency | |||
Payroll payable | 3,594,886,729.81 | 3,594,886,729.81 | |
Tax payable | 7,939,166,588.84 | 7,939,166,588.84 | |
Other payables | 2,292,680,733.51 | 2,292,680,733.51 | |
Including: Interest payable | |||
Dividend payable | |||
Commission charge and commission payable | |||
Reinsurance payables | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | 1,430,705,818.80 | 1,430,705,818.80 | |
Total current liabilities | 30,034,599,308.10 | 30,034,599,308.10 | |
Non-current liabilities: | |||
Insurance contract reserve | |||
Long-term loans | |||
Bonds payable | |||
Including: Preferred share | |||
Perpetual bond | |||
Lease liability | |||
Long-term payable | |||
Long-term payroll payable |
Estimated liabilities | |||
Deferred income | 266,325,368.40 | 266,325,368.40 | |
Deferred income tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 266,325,368.40 | 266,325,368.40 | |
Total liabilities | 30,300,924,676.50 | 30,300,924,676.50 | |
Owner’s equity: | |||
Capital stock | 3,881,608,005.00 | 3,881,608,005.00 | |
Other equity instruments | |||
Including: Preferred share | |||
Perpetual bond | |||
Capital reserve | 2,682,647,086.15 | 2,682,647,086.15 | |
Less: Treasury stock | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserve | 16,092,197,023.01 | 16,092,197,023.01 | |
Provision for general risk | |||
Undistributed profit | 51,634,248,548.06 | 51,634,248,548.06 | |
Total owners’ equity attributable to parent company | 74,290,700,662.22 | 74,290,700,662.22 | |
Minority equity | 1,805,346,994.94 | 1,805,346,994.94 | |
Total owners’ equity | 76,096,047,657.16 | 76,096,047,657.16 | |
Total liabilities and owners’ equity | 106,396,972,333.66 | 106,396,972,333.66 |
Balance Sheet of Parent Company
Unit: RMB Yuan
Item | December 31, 2019 | January 1, 2020 | Amount of adjustment |
Current assets: | |||
Cash and cash equivalents | 28,257,367,404.51 | 28,257,367,404.51 | |
Trading financial assets | |||
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | |||
Accounts receivable financing | |||
Prepayments | 80,520,520.72 | 80,520,520.72 | |
Other receivables | 10,126,706,853.03 | 10,126,706,853.03 | |
Including: Interest receivable | 570,078,014.35 | 570,078,014.35 | |
Dividends receivable | 654,791,389.27 | 654,791,389.27 | |
Inventory | |||
Contract asset | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | |||
Total current assets | 38,464,594,778.26 | 38,464,594,778.26 | |
Non-current assets: | |||
Debt investment | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity | 10,609,783,624.61 | 10,609,783,624.61 |
investment | |||
Other equity instrument investment | |||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | |
Investment properties | |||
Fixed assets | 100,266,366.93 | 100,266,366.93 | |
Construction in progress | 100,358,221.33 | 100,358,221.33 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 39,222,336.12 | 39,222,336.12 | |
Development expenditures | |||
Goodwill | |||
Long-term deferred expenses | |||
Deferred income tax assets | 2,202,432.10 | 2,202,432.10 | |
Other non-current assets | |||
Total non-current assets | 10,853,032,981.09 | 10,853,032,981.09 | |
Total assets | 49,317,627,759.35 | 49,317,627,759.35 | |
Current liabilities: | |||
Short-term loans | |||
Trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | |||
Accounts payable | 418,136.00 | 418,136.00 | |
Accounts received in advance |
Contract liability | |||
Payroll payable | 8,811,734.27 | 8,811,734.27 | |
Tax payable | 30,732,337.42 | 30,732,337.42 | |
Other payables | 285,450,874.79 | 285,450,874.79 | |
Including: Interest payable | |||
Dividend payable | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | |||
Total current liabilities | 325,413,082.48 | 325,413,082.48 | |
Non-current liabilities: | |||
Long-term loans | |||
Bonds payable | |||
Including: Preferred share | |||
Perpetual bond | |||
Lease liability | |||
Long-term payable | |||
Long-term payroll payable | |||
Estimated liabilities | |||
Deferred income | 1,000,000.00 | 1,000,000.00 | |
Deferred income tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 1,000,000.00 | 1,000,000.00 | |
Total liabilities | 326,413,082.48 | 326,413,082.48 | |
Owner’s equity: | |||
Capital stock | 3,881,608,005.00 | 3,881,608,005.00 |
Other equity instruments | |||
Including: Preferred share | |||
Perpetual bond | |||
Capital reserve | 2,682,647,086.15 | 2,682,647,086.15 | |
Less: Treasury stock | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserve | 7,884,654,620.01 | 7,884,654,620.01 | |
Undistributed profit | 34,542,304,965.71 | 34,542,304,965.71 | |
Total owners’ equity | 48,991,214,676.87 | 48,991,214,676.87 | |
Total liabilities and owners’ equity | 49,317,627,759.35 | 49,317,627,759.35 |
(4) Note on comparison data before the retrospective adjustments due to initial implementation
of new revenue standards from 2020
□ 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% |
*According to the Notice of the People’s Government of Sichuan Province on Printing theManagement Measures for Collection and Use of Local Education Surcharge (CFH [2011] No. 68)issued the People’s Government of Sichuan Province on April 2, 2011, entities and individuals payingvalue-added tax, business tax, and consumption tax within administrative regions of Sichuan Provinceshall pay local education surcharge at 2% of the amount of the “three taxes” actually paid.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 Co., Ltd. | 15% |
Yibin Xinxing Packaging Co., Ltd. | 20% |
Wuhou Cultural Development Co., Ltd. | 20% |
Sichuan Jiebeike Environmental Technology Co., Ltd. | 20% |
Sichuan Jinwuxin Technology Co., Ltd. | 20% |
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. | 20% |
Linzhang Desheng Wine Trade Co., Ltd. | 20% |
Sichuan Wuliangye Tourist Agency Co., Ltd. | 20% |
2. Tax preference
(1) VAT
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained thecertificate of social welfare enterprise “FQZZ No. 51004121049” issued by the Department of CivilAffairs of Sichuan Province. The Company, conforming to relevant provisions of GSF [2016] No. 33 andthe Notice on VAT Preferential Policy for Promoting the Employment of the Disabled of the Ministry ofFinance and the State Administration of Taxation (CS [2016] No. 52), enjoys the drawback policy ofvalue-added tax. Recoverable value-added tax of each month=Number of disabled person employedby the taxpayer in current month×quadruple of the minimum wage of current month. The amount ofvalue-added tax refunded in 2020 was RMB 42,714,120.00.According to the Notice of the Ministry of Finance and the State Administration of Taxation onPrinting the Catalog of Preferential Value-added Tax for Comprehensive Utilization of Resources andService (CS [2015] No. 78), the steam, white carbon black, lactic acid, and calcium lactate productssold by Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. and produced with waste distilledgrain and pot bottom water for brewing can enjoy the 70% drawback policy for the value-added taxrealized since July 1, 2015. The amount of value-added tax refunded in 2020 was RMB 14,010,868.21.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging MaterialsCompany Limited, and Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. conforming to theNotice of the State Administration of Taxation on Issues about Corporate Income Tax of FurtherImplementing the Western Development Strategy (Notice of the State Administration of Taxation (2012)No. 12), has been filed with the No. 1 Branch of Local Taxation Bureau of Yibin for preferentialcorporate income tax and pays the corporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., Wuhou Cultural Development Co., Ltd., Sichuan JiebeikeEnvironmental Technology Co., Ltd., Sichuan Jinwuxin Technology Co., Ltd., Yibin WuliangyeXinshengdai Liquor Co., Ltd., Linzhang Desheng Wine Trade Co., Ltd. and Sichuan Wuliangye TouristAgency Co., Ltd. conform to the provisions of the Notice on Implementing the Inclusive Tax DeductionPolicy for Small and Micro Enterprises of the Ministry of Finance and the Statement Administration of
Taxation (CS [2019] No. 13), which specifying that if the annual taxable income of small low-profitenterprises is less than RMB 1 million, the taxable income shall be 25% of such annual taxable incomeand the corporate income tax rate shall be 20%; if the annual taxable income is more than RMB 1million but less than RMB 3 million, the taxable income shall be 50% of such annual taxable income andthe corporate income tax rate shall be 20%.VII. Notes to consolidated financial statements
1. Cash and cash equivalents
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Cash on hand | 25,283.79 | 28,179.40 |
Bank deposit | 67,880,479,453.44 | 63,138,797,874.22 |
Other cash and cash equivalents | 329,072,285.38 | 99,999,670.17 |
Total | 68,209,577,022.61 | 63,238,825,723.79 |
Including: Total amount of funds restricted in use due to mortgage, pledge or freezing | 329,069,085.01 | 99,996,480.91 |
Other notes:
(1) Other cash and cash equivalents include the balance of securities trading of RMB 3,200.37deposited with Yibin Business Department of Essence Securities, deposit of bank acceptance bill ofRMB 328,818,561.81, and other deposits of RMB 250,523.20.
(2) There are no other funds being restricted in use due to mortgage, pledge or freezing except forthe other cash and cash equivalents above-mentioned; and there is no funds deposited abroad andbeing restricted in repatriation.Wine manufacturing enterprises should disclose in detail whether there is a special interestarrangement with related parties to establish a joint account for funds, etc.
□ Applicable √ Not applicable
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Bank acceptance bill | 18,568,421,154.30 | 14,643,149,595.72 |
Total | 18,568,421,154.30 | 14,643,149,595.72 |
Unit: RMB Yuan
Category | Ending balance | Beginning balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Proportion | Amount | Provision proportion (%) | Amount | Proportion | Amount | Provision proportion (%) | |||
Including: | ||||||||||
Notes receivable with bad debt provision by combination | 18,568,421,154.30 | 100.00% | 18,568,421,154.30 | 14,643,149,595.72 | 100.00% | 14,643,149,595.72 | ||||
Including: | ||||||||||
Bank acceptance bill | 18,568,421,154.30 | 100.00% | 18,568,421,154.30 | 14,643,149,595.72 | 100.00% | 14,643,149,595.72 | ||||
Total | 18,568,421,154.30 | 100.00% | 18,568,421,154.30 | 14,643,149,595.72 | 100.00% | 14,643,149,595.72 |
(2) Notes receivable pledged by the Company at the end of the period
The Company had no notes receivable pledged by the Company at the end of the period.
(3) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date of balance sheetThe Company had no notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date ofbalance sheet
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to performThe Company had no notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform.
(5) 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) Disclosure of receivables by category
Unit: RMB Yuan
Category | Ending balance | Beginning balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Proportion | Amount | Provision proportion (%) | Amount | Proportion | Amount | Provision proportion (%) | |||
Accounts receivable with bad debt provision by single item | 1,508,250.71 | 3.10% | 1,508,250.71 | 100.00% | 1,508,250.71 | 1.05% | 1,508,250.71 | 100.00% | ||
Including: | ||||||||||
External customer | 1,508,250.71 | 3.10% | 1,508,250.71 | 100.00% | 1,508,250.71 | 1.05% | 1,508,250.71 | 100.00% | ||
Receivables with bad debt provision by combination | 47,158,692.98 | 96.90% | 5,662,522.63 | 12.01% | 41,496,170.35 | 142,604,157.15 | 98.95% | 8,154,464.12 | 5.72% | 134,449,693.03 |
Including: | ||||||||||
External customer | 36,342,444.48 | 74.68% | 5,662,522.63 | 15.58% | 30,679,921.85 | 88,029,978.68 | 61.08% | 8,154,464.12 | 9.26% | 79,875,514.56 |
Related parties | 10,816,248.50 | 22.22% | 10,816,248.50 | 54,574,178.47 | 37.87% | 54,574,178.47 | ||||
Total | 48,666,943.69 | 100.00% | 7,170,773.34 | 14.73% | 41,496,170.35 | 144,112,407.86 | 100.00% | 9,662,714.83 | 6.70% | 134,449,693.03 |
Bad debt provision by single item:
Unit: RMB Yuan
Name | Ending balance | |||
Book balance | Bad debt provision | Provision proportion (%) | Reasons for provision | |
Ningxia Hongzhongning Wolfberry Products Co., Ltd. | 516,135.60 | 516,135.60 | 100.00% | Expected irrecoverable |
Nanxi Daliangxin Food Co., Ltd. | 389,729.12 | 389,729.12 | 100.00% | Expected irrecoverable |
Hunan Liuyanghe Liquor Industry Co., Ltd. | 308,155.34 | 308,155.34 | 100.00% | Expected irrecoverable |
Sichuan Debo Daily Commodity Co., Ltd. | 294,230.65 | 294,230.65 | 100.00% | Expected irrecoverable |
Total | 1,508,250.71 | 1,508,250.71 | -- | -- |
Bad debt provision by combination:
Unit: RMB Yuan
Name | Ending balance | |||
Book balance | Bad debt provision | Provision proportion (%) | Reasons for provision | |
Accounts receivable with bad debt provision by combination of external customer | 36,342,444.48 | 5,662,522.63 | 15.58% | |
Accounts receivable with bad debt provision by combination of related parties | 10,816,248.50 | |||
Total | 47,158,692.98 | 5,662,522.63 | -- | -- |
Disclosure by aging
Unit: RMB Yuan
Aging | Book balance |
Within 1 year (inclusive) | 39,159,404.03 |
1 to 2 years | 1,104,718.58 |
2 to 3 years | 1,159,009.02 |
More than 3 years | 7,243,812.06 |
3 to 4 years | 594,516.24 |
4 to 5 years | 1,698,664.39 |
More than 5 years | 4,950,631.43 |
Total | 48,666,943.69 |
(2) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB Yuan
Category | Beginning balance | Amount of change in current year | Ending balance | |||
Provisions | Recovery or reversal | Write-off | Others | |||
Accounts receivable with bad debt provision by single item | 1,508,250.71 | 1,508,250.71 | ||||
Accounts receivable with bad debt provision by combination of external customer | 8,154,464.12 | -2,504,725.68 | 12,784.19 | 5,662,522.63 | ||
Total | 9,662,714.83 | -2,504,725.68 | 12,784.19 | 7,170,773.34 |
(3) Accounts receivable actually written off in the current periodThere was no accounts receivable actually written off in the current period.
(4) Accounts receivable with top 5 ending balances by debtor
Unit: RMB Yuan
Unit name | Ending balance of accounts receivable | Proportion in total ending balance of accounts receivable | Ending balance of bad debt provision |
Sichuan Putian Packaging Co., Ltd. | 7,403,902.45 | 15.21% | |
Sichuan Youhu Trade Co., Ltd. | 3,770,871.26 | 7.75% | 188,543.56 |
Yibin Haisite Fiber Co., Ltd. | 2,198,387.33 | 4.52% | 109,919.37 |
Chengdu Kanglongxin Plastic Industry Co., Ltd. | 1,863,050.51 | 3.83% | 93,152.53 |
Sitir Liquor Co., Ltd. | 1,793,468.28 | 3.69% | 104,681.08 |
Total | 17,029,679.83 | 35.00% |
(5) At the end of the period, the Company had no accounts receivable derecognized due to the transfer
of financial assets.
4. Accounts receivable financing
(1) Accounts receivable financing presented by category
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Bank acceptance bill | 2,024,442,016.72 | 3,450,166,659.06 |
Total | 2,024,442,016.72 | 3,450,166,659.06 |
The Company, based on the management purpose of notes receivable, classifies notes receivablefor receiving contract cash flow and selling as financial assets measured at fair value with changesrecorded into other comprehensive income.
Unit: RMB Yuan
Category | Ending balance | Beginning balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt Provisions | Book value | |||||
Amount | Proportion | Amount | Provision proportion (%) | Amount | Proportion | Amount | Provision proportion (%) | |||
Accounts receivable financing with bad debt provision by single item | ||||||||||
Accounts receivable financing with bad debt provision by combination | 2,024,442,016.72 | 100.00% | 2,024,442,016.72 | 3,450,166,659.06 | 100.00% | 3,450,166,659.06 | ||||
Including: Bank acceptance bill | 2,024,442,016.72 | 100.00% | 2,024,442,016.72 | 3,450,166,659.06 | 100.00% | 3,450,166,659.06 | ||||
Total | 2,024,442,016.72 | 100.00% | 2,024,442,016.72 | 3,450,166,659.06 | 100.00% | 3,450,166,659.06 |
(2) Accounts receivable financing pledged by the Company at the end of the period
Unit: RMB Yuan
Item | Ending pledged amount |
Bank acceptance bill | 52,470,000.00 |
Total | 52,470,000.00 |
Notes: The bank acceptance bill pledged by the Company at the end of the period is mainly arisingfrom the Company’s pledge of notes in large amount to the Bank and the issuance of notes in smallamount for external payments.
(3) Accounts receivable financing endorsed or discounted by the Company at the end of the
period and not expired yet on the date of balance sheet
Unit: RMB Yuan
Item | Amount derecognized at the end of the period | Amount not yet derecognized at the end of the period |
Bank acceptance bill | 1,203,559,943.74 | |
Total | 1,203,559,943.74 |
(4) Accounts receivable financing transferred to accounts receivable by the Company at the end
of the period due to failure of the drawer to perform
None.
(5) The Company had no accounts receivable financing actually written off in the period
5. Prepayments
(1) Prepayments presented by aging
Unit: RMB Yuan
Aging | Ending balance | Beginning balance | ||
Amount | Proportion | Amount | Proportion | |
Within 1 year | 159,490,040.03 | 64.50% | 136,286,439.94 | 58.77% |
1 to 2 years | 5,065,482.28 | 2.05% | 6,819,475.06 | 2.94% |
2 to 3 years | 1,903,024.39 | 0.77% | 1,127,071.75 | 0.49% |
More than 3 years | 80,800,533.72 | 32.68% | 87,676,153.34 | 37.81% |
Total | 247,259,080.42 | -- | 231,909,140.09 | -- |
Reasons for non-timely settlement of prepayments in significant amount with the aging more than 1year:
Prepayments with the aging more than 1 year are mainly the prepayments to Yibin Guoding Gas Co.,Ltd. for the gas source as agreed.
(2) Prepayments with top 5 ending balances by prepayment object
Unit: RMB Yuan
Unit name | Ending balance | Proportion in ending balance of prepayments |
Yibin Guoding Gas Co., Ltd. | 72,922,000.00 | 29.49% |
Beijing Taiyang Shenghuo International Advertising Co., Ltd. | 31,955,594.46 | 12.92% |
China National Petroleum Corporation, Southwest Chemical Sales Branch | 25,550,913.54 | 10.33% |
Yibin Push Linko Technology Co., Ltd. | 19,944,767.12 | 8.07% |
Sinopec Chemical Commercial Holding Company Limited, Central China Branch | 15,332,417.11 | 6.20% |
Total | 165,705,692.23 | 67.02% |
6. Other receivables
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Interest receivable | 1,215,275,214.91 | |
Other receivables | 36,199,607.12 | 33,369,357.49 |
Total | 36,199,607.12 | 1,248,644,572.40 |
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Interest of fixed term deposit | 1,215,275,214.91 | |
Total | 1,215,275,214.91 |
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB Yuan
Nature of receivable | Ending book balance | Beginning book balance |
Reserve fund | 4,126,194.86 | 6,792,778.95 |
Current account | 9,851,782.12 | 7,027,439.51 |
Deposit | 17,389,932.95 | 19,102,013.23 |
Other advance money for others or temporary payment | 10,563,309.32 | 4,698,433.09 |
Total | 41,931,219.25 | 37,620,664.78 |
2) Provision for bad debt
Unit: RMB Yuan
Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the coming 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
Balance on January 1, 2020 | 4,219,047.66 | 32,259.63 | 4,251,307.29 | |
Balance on January 1, 2020 in current period | —— | —— | —— | —— |
Provisions in current period | 1,508,694.62 | -28,389.78 | 1,480,304.84 | |
Balance on December 31, 2020 | 5,727,742.28 | 3,869.85 | 5,731,612.13 |
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB Yuan
Aging | Book balance |
Within 1 year (inclusive) | 24,398,004.59 |
1 to 2 years | 6,205,809.68 |
2 to 3 years | 6,893,979.93 |
More than 3 years | 4,433,425.05 |
3 to 4 years | 564,502.88 |
4 to 5 years | 357,446.43 |
More than 5 years | 3,511,475.74 |
Total | 41,931,219.25 |
3) Provision, recovery or reversal of bad debt provision in current periodBad debt provision in current period:
Unit: RMB Yuan
Category | Beginning balance | Amount of change in current year | Ending balance | |||
Provisions | Recovery or reversal | Write-off | Others | |||
Other receivables with bad debt provision by single item | 32,259.63 | -28,389.78 | 3,869.85 | |||
Other receivables with bad debt provision by credit risk combination | 4,219,047.66 | 1,508,694.62 | 5,727,742.28 | |||
Total | 4,251,307.29 | 1,480,304.84 | 5,731,612.13 |
4) Other receivables actually written off in current period
There was no other receivables actually written off in current period.
5) Other receivables with top 5 ending balances by debtor
Unit: RMB Yuan
Unit name | Nature of receivables | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending balance of bad debt provision |
Yibin Cuiping District Housing and Urban-Rural Development Bureau | Deposit | 5,000,000.00 | 2-3 years | 11.92% | 1,000,000.00 |
Yibin Zhongqi Natural Gas Co., Ltd. | Deposit | 4,000,000.00 | Within 1 year | 9.54% | 120,000.00 |
Yibin Social Insurance Bureau | Advance money for others | 3,873,403.62 | Within 1 year | 9.24% | 116,216.29 |
China National Petroleum Corporation, Sichuan Yi Saibin Sales Branch | Temporary payment | 1,740,000.00 | Within 1 year | 4.15% | 52,200.00 |
Chongqing Xibolesi Building Engineering Co., Ltd. | Advance money for others | 1,671,340.32 | More than 5 years | 3.99% | 1,337,072.26 |
Total | -- | 16,284,743.94 | -- | 38.84% | 2,625,488.55 |
7. Inventory
(1) Inventory classification
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Inventory falling price reserves or reserves for impairment of contract performance costs | Book value | Book balance | Inventory falling price reserves or reserves for impairment of contract performance costs | Book value | |
Raw materials | 1,006,752,368.41 | 5,500,972.51 | 1,001,251,395.90 | 820,802,958.97 | 5,470,868.60 | 815,332,090.37 |
Goods in process | 964,076,320.20 | 964,076,320.20 | 920,929,926.83 | 920,929,926.83 | ||
Inventory of goods | 1,715,227,321.75 | 28,068,948.50 | 1,687,158,373.25 | 2,641,768,788.26 | 23,606,759.68 | 2,618,162,028.58 |
Turnover materials | 4,509,057.31 | 436,409.41 | 4,072,647.90 | 2,443,559.07 | 2,443,559.07 |
Goods issued | 217,544,735.96 | 2,339,349.95 | 215,205,386.01 | 91,743,317.05 | 917,805.65 | 90,825,511.40 |
Goods in transit | 2,121,297.94 | 2,121,297.94 | ||||
Semi-finished products | 9,290,022,881.61 | 151,805.88 | 9,289,871,075.73 | 9,185,653,882.86 | 9,185,653,882.86 | |
Packing materials | 35,637,606.57 | 15,916,796.10 | 19,720,810.47 | 16,350,413.67 | 15,916,796.10 | 433,617.57 |
Work in process-outsourced | 44,796,324.05 | 44,796,324.05 | 45,838,998.73 | 45,838,998.73 | ||
Total | 13,280,687,913.80 | 52,414,282.35 | 13,228,273,631.45 | 13,725,531,845.44 | 45,912,230.03 | 13,679,619,615.41 |
(2) Classification of inventory goods
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Falling price reserves | Book value | Book balance | Falling price reserves | Book value | |
Liquors | 1,107,242,109.83 | 1,107,242,109.83 | 1,981,292,442.44 | 1,981,292,442.44 | ||
Plastic products | 407,641,508.37 | 2,376,198.91 | 405,265,309.46 | 374,726,965.18 | 2,404,978.20 | 372,321,986.98 |
Printing | 87,914,622.34 | 13,613,249.08 | 74,301,373.26 | 77,827,912.75 | 13,613,249.08 | 64,214,663.67 |
Glass bottle | 95,200,289.49 | 6,459,504.39 | 88,740,785.10 | 154,797,421.71 | 76,683.01 | 154,720,738.70 |
Others | 17,228,791.72 | 5,619,996.12 | 11,608,795.60 | 53,124,046.18 | 7,511,849.39 | 45,612,196.79 |
Total | 1,715,227,321.75 | 28,068,948.50 | 1,687,158,373.25 | 2,641,768,788.26 | 23,606,759.68 | 2,618,162,028.58 |
(3) Inventory falling price reserves and reserves for impairment of contract performance costs
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
Provisions | Others | Reversed or written-off | Others | |||
Raw materials | 5,470,868.60 | 57,645.70 | 27,541.79 | 5,500,972.51 | ||
Inventory of goods | 23,606,759.68 | 11,597,071.16 | 7,134,882.34 | 28,068,948.50 | ||
Turnover materials | 436,409.41 | 436,409.41 | ||||
Packing materials | 15,916,796.10 | 15,916,796.10 | ||||
Goods issued | 917,805.65 | 1,421,544.30 | 2,339,349.95 | |||
Semi-finished products | 151,805.88 | 151,805.88 | ||||
Total | 45,912,230.03 | 13,664,476.45 | 7,162,424.13 | 52,414,282.35 |
(4) Note on ending balance of inventory containing the capitalized amount of borrowing costsNone
8. Long-term equity investment
Unit: RMB Yuan
Invested company | Beginning balance (book value) | Increase/decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
Additional investment | Reduced investment | Profit and loss on investments recognized with equity method | Adjustment of other comprehensive income | Changes in other equities | Declaration of cash dividends or profits | Accrual of impairment provision | Others | ||||
I. joint ventures | |||||||||||
II. Associates | |||||||||||
Oriental Outlook Media Co., Ltd. | 17,078,139.66 | 4,043,275.64 | 21,121,415.30 | ||||||||
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 994,858,486.75 | 734,693,877.55 | 87,842,578.12 | 1,817,394,942.42 | |||||||
Yibin Jiamei Intelligent Packaging Co., Ltd. | 9,842,105.18 | 1,618,640.40 | 11,460,745.58 | ||||||||
Sub-total | 1,021,778,731.59 | 734,693,877.55 | 93,504,494.16 | 1,849,977,103.30 | |||||||
Total | 1,021,778,731.59 | 734,693,877.55 | 93,504,494.16 | 1,849,977,103.30 |
Other notes:
(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 RMB 17.15 millionin April 2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by China WorldbestGroup, ShanghaiWorldbestCo.,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 onOctober 24, 2012, the Company, Yibin Wuliangye Group Company and 6 of its subsidiaries, and ABCInternational Holdings Limited jointly invested and established Sichuan Yibin Wuliangye Group FinanceCo., Ltd. (hereinafter referred to as the “Finance Company”). Its registered capital is RMB 2 billion,among which the Company contributed RMB 0.72 billion, taking up 36% of the registered capital.
On May 23, 2020, the 74th meeting of the 5th Session of the Board of Directors of the Companyconsidered and approved the capital increase of the Company to the Finance Company based on thenet assets per share of the Finance Company evaluated at RMB1.3817 per share as consideration forthe capital increase of RMB734,693,877.55, of which: RMB531,731,835.82 was credited to registeredcapital and RMB202,962,041.73 was credited to capital surplus. In this capital increase, the related partySichuan Yibin Wuliangye Group Co., Ltd. increased its capital at the same price, and the remainingshareholders of the Finance Company did not participate in this capital increase. After the completion ofthis capital increase, the registered capital of the Finance Company increased from RMB2,000,000,000to RMB3,085,619,164.80, and the shareholding ratio of the Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of theCompany, and Shenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and establishedYibin Jiamei Intelligent Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co.,Ltd. include research and development, platemaking, printing, production and sales of packagingproducts. Its registered capital is RMB 20 million, among which Sichuan Yibin Wuliangye JingmeiPrinting Co., Ltd. contributed RMB 9.8 million, taking up 49% of the registered capital.
9. Other non-current financial assets
Unit: RMB Yuan
Item | Ending balance | Beginning 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 Yuan
Item | Ending balance | Beginning balance |
Fixed assets | 5,866,732,589.90 | 6,108,183,363.27 |
Disposal of fixed assets | 148,270.13 | 562,549.45 |
Total | 5,866,880,860.03 | 6,108,745,912.72 |
(1) Note on fixed assets
Unit: RMB Yuan
Item | Houses and buildings | Special equipment | General equipment | Transportation equipment | Other equipment | Total |
I. Original book value: | ||||||
1. Beginning balance | 8,900,077,124.01 | 3,035,564,850.57 | 2,220,355,566.71 | 116,501,717.09 | 622,756,178.52 | 14,895,255,436.90 |
2. Increase in current period | 28,572,811.49 | 60,615,542.15 | 71,841,475.84 | 41,990,259.22 | 35,949,540.07 | 238,969,628.77 |
(1) Acquisition | 5,109,326.00 | 46,022,598.10 | 70,930,616.00 | 41,990,259.22 | 22,089,780.99 | 186,142,580.31 |
(2) Transfer from construction in | 23,463,485.49 | 14,592,944.05 | 910,859.84 | 13,859,759.08 | 52,827,048.46 |
progress | ||||||
(3) Increase from business combination | ||||||
3. Decrease in current period | 47,952,123.98 | 34,859,893.49 | 67,549,987.61 | 2,517,805.14 | 14,303,512.25 | 167,183,322.47 |
(1) Disposal or scrap | 13,667,260.52 | 34,859,893.49 | 67,549,987.61 | 2,517,805.14 | 14,303,512.25 | 132,898,459.01 |
(2) Donation | ||||||
(3) Others | 34,284,863.46 | 34,284,863.46 | ||||
4. Ending balance | 8,880,697,811.52 | 3,061,320,499.23 | 2,224,647,054.94 | 155,974,171.17 | 644,402,206.34 | 14,967,041,743.20 |
II. Accumulated depreciation | ||||||
1. Beginning balance | 3,630,041,373.44 | 2,740,040,481.98 | 1,778,128,694.39 | 86,277,626.86 | 544,052,430.17 | 8,778,540,606.84 |
2. Increase in current period | 274,682,631.82 | 76,659,589.76 | 53,929,339.97 | 9,882,440.34 | 20,516,690.04 | 435,670,691.93 |
(1) Provisions | 274,682,631.82 | 76,659,589.76 | 53,929,339.97 | 9,882,440.34 | 20,516,690.04 | 435,670,691.93 |
(2) Increase from business combination | ||||||
(3) Others | ||||||
3. Decrease in current period | 8,665,443.14 | 33,492,688.59 | 64,746,328.13 | 2,105,026.74 | 13,795,196.56 | 122,804,683.16 |
(1) Disposal or scrap | 8,665,443.14 | 33,492,688.59 | 64,746,328.13 | 2,105,026.74 | 13,795,196.56 | 122,804,683.16 |
(2) Donation | ||||||
(3) Others | ||||||
4. Ending balance | 3,896,058,562.12 | 2,783,207,383.15 | 1,767,311,706.23 | 94,055,040.46 | 550,773,923.65 | 9,091,406,615.61 |
III. Provision for impairment | ||||||
1. Beginning balance | 1,544,029.33 | 5,860,320.21 | 656,514.70 | 470,602.55 | 8,531,466.79 | |
2. Increase in current period | 448,709.53 | 448,709.53 | ||||
(1) Provisions | 448,709.53 | 448,709.53 | ||||
3. Decrease in current period | 77,638.63 | 77,638.63 | ||||
(1) Disposal or scrap | 77,638.63 | 77,638.63 | ||||
4. Ending balance | 1,544,029.33 | 5,782,681.58 | 656,514.70 | 919,312.08 | 8,902,537.69 | |
IV. Book value |
1. Ending book value | 4,983,095,220.07 | 272,330,434.50 | 456,678,834.01 | 61,919,130.71 | 92,708,970.61 | 5,866,732,589.90 |
2. Beginning book value | 5,268,491,721.24 | 289,664,048.38 | 441,570,357.62 | 30,224,090.23 | 78,233,145.80 | 6,108,183,363.27 |
(2) Fixed assets that are temporarily idle
None.
(3) Fixed assets under financing lease
None.
(4) Fixed assets leased out by operating lease
Unit: RMB Yuan
Item | Ending book value |
Buildings | 125,699,994.78 |
Warehouse | 16,286,521.97 |
Equipment | 11,808,136.08 |
Total | 153,794,652.83 |
(5) Fixed assets without certificate of title
Unit: RMB Yuan
Item | Book value | Reason for not obtaining certificate of title |
Buildings | 922,160,137.04 | 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. |
Buildings | 3,900,494.78 | In progress |
Total | 926,060,631.82 |
Notes: According to the Interim Regulation on Real Estate Registration of Sichuan Province 2016,the property ownership certificate and the land use certificate are integrated into the real estateownership certificate. The Company is sorting out relevant assets and handling with the certificate of titleof relevant assets.
(6) Disposal of fixed assets
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Other equipment | 148,270.13 | 562,549.45 |
Total | 148,270.13 | 562,549.45 |
11. Construction in progress
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Construction in progress | 1,480,337,105.88 | 810,667,169.54 |
Project goods and materials | 1,761,078.76 | 1,761,078.76 |
Total | 1,482,098,184.64 | 812,428,248.30 |
(1) Construction in progress
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 528,404,511.04 | 528,404,511.04 | 432,757,395.14 | 432,757,395.14 | ||
Technological Innovation Project for | 178,703,412.28 | 178,703,412.28 | 1,592,000.06 | 1,592,000.06 |
Storing Blended Liquor | ||||||
The liquor packaging and integrated smart storage-and-delivery project | 162,362,443.37 | 162,362,443.37 | 7,522,113.42 | 7,522,113.42 | ||
Wuliangye Industrial Park Construction Project | 116,380,592.65 | 116,380,592.65 | 116,380,592.65 | 116,380,592.65 | ||
Hongba New Park Supporting Facilities Construction Project | 86,449,743.23 | 86,449,743.23 | 1,003,096.22 | 1,003,096.22 | ||
Pipe Network Reconstruction Project of Jiangbei Park | 38,083,788.58 | 38,083,788.58 | 26,591,075.62 | 26,591,075.62 | ||
Factory Buildings and Other Buildings Renovation Project of the Company (Phase II) | 30,408,205.03 | 30,408,205.03 | 26,482,983.09 | 26,482,983.09 | ||
Phase II of 90-Thousand-Ton Pottery Jar Aging Spirit Room Technical Innovation Project (Phase VI) | 28,264,685.42 | 28,264,685.42 | 8,196,054.13 | 8,196,054.13 | ||
523 Workshop 1-80 Span Tool Room Upgrade (Emergency) | 16,691,460.19 | 16,691,460.19 | ||||
Brewing Special Grain Process Bin & Milling Automation Renovation Project | 20,257,399.24 | 20,257,399.24 | ||||
503 Workshop Appearance Upgrade | 20,102,188.68 | 20,102,188.68 | 8,330,188.68 | 8,330,188.68 | ||
Anlequan Scenic Area Upgrade Emergency Project | 18,618,699.97 | 18,618,699.97 | ||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase III) | 13,191,272.30 | 13,191,272.30 | 2,608,290.56 | 2,608,290.56 | ||
Partial Overhead Lines Underlay Reconstruction Project of the Trunk Road of the East and West Gates | 10,698,865.18 | 10,698,865.18 | 10,698,865.18 | 10,698,865.18 | ||
Wuliangye Liquor Plant Main Water | 10,551,990.72 | 10,551,990.72 | 7,251,990.73 | 7,251,990.73 |
Pipe Renovation Project | ||||||
No.4 Kiln Upgrading and Reconstruction Project | 21,776,007.96 | 21,776,007.96 | ||||
Other sporadic works | 203,567,853.55 | 2,400,005.55 | 201,167,848.00 | 141,876,521.65 | 2,400,005.55 | 139,476,516.10 |
Total | 1,482,737,111.43 | 2,400,005.55 | 1,480,337,105.88 | 813,067,175.09 | 2,400,005.55 | 810,667,169.54 |
(2) Changes in important construction in progress in current period
Unit: RMB Yuan
Project name | Budget | Beginning balance | Increase in current period | Amount transferred to fixed assets in the current period | Other decreases in current period Amount | Ending balance | Proportion of project input to the budget (%) | Engineering progress | Accumulated amount of interest capitalized | Including: Capitalized amount of interest in current period | Capitalization rate of interest in current period | Source of funds |
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 857,070,000.00 | 432,757,395.14 | 95,647,115.90 | 528,404,511.04 | 61.65% | 99.00% | Own funds and subsidies | |||||
Technological Innovation Project for Storing Blended Liquor | 1,726,166,000.00 | 1,592,000.06 | 177,111,412.22 | 178,703,412.28 | 10.35% | 46.00% | Owned and raised funds | |||||
The liquor packaging and integrated smart storage-and-delivery project | 8,596,655,000.00 | 7,522,113.42 | 154,840,329.95 | 162,362,443.37 | 1.89% | 21.00% | Owned and raised funds | |||||
Wuliangye Industrial Park Construction Project | 229,980,000.00 | 116,380,592.65 | 116,380,592.65 | 51.37% | 65.00% | Own funds and subsidies | ||||||
Hongba New Park Supporting Facilities Construction Project | 655,122,000.00 | 1,003,096.22 | 85,446,647.01 | 86,449,743.23 | 13.61% | 30.00% | Own funds | |||||
Pipe Network Reconstruction Project of Jiangbei Park | 109,396,900.00 | 26,591,075.62 | 11,492,712.96 | 38,083,788.58 | 34.81% | 98.00% | Own funds | |||||
Factory Buildings and Other Buildings Renovation Project of the Company (Phase II) | 201,841,000.00 | 26,482,983.09 | 9,329,236.39 | 5,404,014.45 | 30,408,205.03 | 26.48% | 13.00% | Own funds | ||||
Phase II of 90-Thousand-Ton Pottery Jar Aging Spirit Room Technical Innovation Project (Phase VI) | 50,552,120.00 | 8,196,054.13 | 20,068,631.29 | 28,264,685.42 | 55.91% | 98.00% | Own funds | |||||
523 Workshop 1-80 Span Tool Room Upgrade (Emergency) | 28,774,300.00 | 16,691,460.19 | 16,691,460.19 | 58.01% | 99.00% | Own funds | ||||||
Brewing Special Grain Process Bin & Milling Automation Renovation Project | 414,150,100.00 | 20,257,399.24 | 20,257,399.24 | 4.89% | 40.00% | Own funds | ||||||
503 Workshop Appearance Upgrade | 69,690,500.00 | 8,330,188.68 | 11,772,000.00 | 20,102,188.68 | 28.84% | 70.00% | Own funds | |||||
Anlequan Scenic Area Upgrade Emergency Project | 46,744,700.00 | 18,618,699.97 | 18,618,699.97 | 39.83% | 90.00% | Own funds | ||||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase III) | 37,490,000.00 | 2,608,290.56 | 10,582,981.74 | 13,191,272.30 | 35.19% | 98.00% | Own funds | |||||
Partial Overhead Lines Underlay Reconstruction Project of the Trunk Road of the East and West Gates | 17,600,000.00 | 10,698,865.18 | 10,698,865.18 | 60.79% | 99.00% | Own funds | ||||||
Wuliangye Liquor Plant Main Water Pipe Renovation Project | 21,499,200.00 | 7,251,990.73 | 3,299,999.99 | 10,551,990.72 | 49.08% | 70.00% | Own funds | |||||
No.4 Kiln Upgrading and Reconstruction Project | 48,496,000.00 | 21,776,007.96 | 2,440,154.15 | 24,216,162.11 | 0.00 | 58.40% | 100% | Own funds | ||||
Total | 13,111,227,820.00 | 671,190,653.44 | 637,598,781.00 | 29,620,176.56 | 1,279,169,257.88 | -- | -- | -- |
(3) Project goods and materials
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Project goods and materials | 1,761,078.76 | 1,761,078.76 | 1,761,078.76 | 1,761,078.76 | ||
Total | 1,761,078.76 | 1,761,078.76 | 1,761,078.76 | 1,761,078.76 |
12. Intangible assets
(1) Note on intangible assets
Unit: RMB Yuan
Item | Land use right | Patents | Non-patented technology | Software system | Technology use right | Copyright | Total |
I. Original book value | |||||||
1. Beginning balance | 478,693,633.32 | 73,900,786.38 | 10,391,942.73 | 562,986,362.43 | |||
2. Increase in current period | 44,663,009.88 | 8,066,037.47 | 52,729,047.35 | ||||
(1) Acquisition | 44,663,009.88 | 8,066,037.47 | 52,729,047.35 | ||||
(2) Internal research and development | |||||||
(3) Increase from business combination | |||||||
3. Decrease in current period | 1,870,718.14 | 72,649.57 | 1,943,367.71 | ||||
(1) Disposal | 1,870,718.14 | 72,649.57 | 1,943,367.71 | ||||
4. Ending balance | 476,822,915.18 | 118,491,146.69 | 10,391,942.73 | 8,066,037.47 | 613,772,042.07 | ||
II. Accumulated amortization | |||||||
1. Beginning balance | 109,251,723.00 | 33,256,761.33 | 10,322,650.29 | 152,831,134.62 | |||
2. Increase in current period | 9,721,896.00 | 16,503,789.11 | 7,358.52 | 1,344,339.60 | 27,577,383.23 | ||
(1) Provisions | 9,721,896.00 | 16,503,789.11 | 7,358.52 | 1,344,339.60 | 27,577,383.23 | ||
3. Decrease in current period | 235,047.20 | 13,319.13 | 248,366.33 | ||||
(1) Disposal | 235,047.20 | 13,319.13 | 248,366.33 | ||||
4. Ending balance | 118,738,571.80 | 49,747,231.31 | 10,330,008.81 | 1,344,339.60 | 180,160,151.52 | ||
III. Provision for impairment | |||||||
1. Beginning balance | |||||||
2. Increase in current period | |||||||
(1) Provisions |
3. Decrease in current period | |||||||
(1) Disposal | |||||||
4. Ending balance | |||||||
IV. Book value | |||||||
1. Ending book value | 358,084,343.38 | 68,743,915.38 | 61,933.92 | 6,721,697.87 | 433,611,890.55 | ||
2. Beginning book value | 369,441,910.32 | 40,644,025.05 | 69,292.44 | 410,155,227.81 |
At the end of current period, the intangible assets created by internal research and development ofthe Company accounts for 0.00% of the balance of intangible assets.
(2) Note on land use right for which the certificate of title has not been obtained
Unit: RMB Yuan
Item | Book value | Reason for not obtaining certificate of title |
Land use right | 1,165,822.25 | The certificate of title has not been obtained due to historical reasons, to which the Company has attached great importance and planned to obtained the certificate of title gradually |
Total | 1,165,822.25 |
13. Goodwill
(1) Original book value of goodwill
Unit: RMB Yuan
Name of invested company or matters forming goodwill | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
Through 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 |
14. Long-term deferred expenses
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Amount amortized to current period | Other decreases | Ending balance |
Mold | 78,539,047.11 | 61,017,039.48 | 40,905,080.80 | 98,651,005.79 | |
Overhaul expenses of kilns | 5,979,307.95 | 16,289,243.42 | 5,162,499.07 | 17,106,052.30 | |
Others | 7,082,976.90 | 2,181,507.56 | 2,140,469.89 | 7,124,014.57 | |
Total | 91,601,331.96 | 79,487,790.46 | 48,208,049.76 | 122,881,072.66 |
Other notes:
Long-term deferred expenses include the molds of Sichuan Yibin Plastic Packaging MaterialsCompany Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan YibinGlobal Gelasi Glass Manufacturing Co., Ltd., which will be amortized in 3 years and 4 years,respectively.
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||
Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
Provision for impairment of assets | 69,531,164.48 | 17,382,791.12 | 62,160,116.40 | 15,540,029.10 |
Unrealized profit of internal transaction | 687,396,568.96 | 171,849,142.24 | 459,631,885.88 | 114,907,971.47 |
Payroll payable | 3,471,678,797.08 | 867,919,699.27 | 3,444,231,749.08 | 861,057,937.27 |
Others | 1,715,679,789.28 | 428,919,947.32 | 663,544,164.64 | 165,886,041.16 |
Total | 5,944,286,319.80 | 1,486,071,579.95 | 4,629,567,916.00 | 1,157,391,979.00 |
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Deductible temporary differences | 7,594,646.58 | 9,104,208.09 |
Deductible losses | 218,357,092.41 | 271,450,834.30 |
Total | 225,951,738.99 | 280,555,042.39 |
Notes: Due to the uncertainty of whether sufficient taxable income will be obtained in the future, deductible temporarydifferences and deductible losses of deferred income tax assets are not recognized.
(3) Deductible losses of deferred income tax assets which have not been recognized willbecome due in the following years
Unit: RMB Yuan
Year | Ending amount | Beginning amount | Remarks |
Year 2020 | 4,604,961.02 | ||
Year 2021 | 11,226,757.85 | 24,902,925.05 | |
Year 2022 | 49,285,485.22 | 90,071,724.12 | |
Year 2023 | 85,123,732.43 | 101,698,424.52 | |
Year 2024 | 45,224,304.55 | 50,172,799.59 | |
Year 2025 | 27,496,812.36 | ||
Total | 218,357,092.41 | 271,450,834.30 | -- |
16. Other non-current assets
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Advances of progress payment for information system construction | 293,128,020.09 | 293,128,020.09 | 165,284,283.25 | 165,284,283.25 | ||
Total | 293,128,020.09 | 293,128,020.09 | 165,284,283.25 | 165,284,283.25 |
17. Notes payable
Unit: RMB Yuan
Type | Ending balance | Beginning balance |
Letter of credit | 4,076,542.40 | |
Bank acceptance bill | 759,552,349.44 | 419,485,425.61 |
Total | 763,628,891.84 | 419,485,425.61 |
Total amount of notes payable which became matured but unpaid at the end of current period is
RMB 0.00.
18. Accounts payable
(1) Presentation of accounts payable
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Accounts payable | 3,382,875,146.71 | 3,257,672,975.56 |
Total | 3,382,875,146.71 | 3,257,672,975.56 |
(2) Significant accounts payable over 1 year
Unit: RMB Yuan
Item | Ending balance | Reason for outstanding or carrying forward |
Project payment | 20,844,926.92 | |
Goods payment | 10,898,576.68 | |
Total | 31,743,503.60 | -- |
19. Accounts received in advance
(1) Presentation of accounts received in advance
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Accounts received in advance | 23,949,793.92 | 21,782,796.70 |
Total | 23,949,793.92 | 21,782,796.70 |
(2) Significant accounts received in advance over 1 year
There was no significant accounts received in advance over 1 year during the reporting period.
(3) Disclosure by aging:
Aging | Book balance |
Within 1 year | 19,214,167.20 |
1 to 2 years | 4,547,861.24 |
2 to 3 years | 113,218.20 |
More than 3 years | 74,547.28 |
Total | 23,949,793.92 |
(4) Accounts received in advance with top 5 ending balances:
Unit name | Ending balance | Proportion in ending balance of accounts received in advance |
Henan Huaibin Wulong Wine Industry Co., Ltd. | 1,144,539.50 | 4.78% |
Yibin Lianheyibai Supermarket Co., Ltd. | 513,419.59 | 2.14% |
Gubeichun Group Co., Ltd. | 462,977.00 | 1.93% |
Chengdu Jinqiao Wine Co., Ltd. | 260,000.00 | 1.09% |
Anhui Yifajiu Sugar-Wines Supermarket Chainstore Co., Ltd. | 242,617.00 | 1.01% |
Total | 2,623,553.09 | 10.95% |
20. Contract liability
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Accounts received in advance | 8,618,543,467.25 | 11,078,218,239.27 |
Total | 8,618,543,467.25 | 11,078,218,239.27 |
21. Payroll payable
(1) Presentation of payroll payable
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
I. Short-term compensation | 3,594,872,516.96 | 5,557,366,073.46 | 5,524,262,942.96 | 3,627,975,647.46 |
II. Post-employment benefits - defined contribution plans | 14,212.85 | 237,305,943.65 | 235,770,815.44 | 1,549,341.06 |
III. Termination benefits | 4,217,845.78 | 4,217,845.78 | ||
Total | 3,594,886,729.81 | 5,798,889,862.89 | 5,764,251,604.18 | 3,629,524,988.52 |
(2) Presentation of short-term compensation
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
1. Salaries, bonuses, allowances and subsidies | 3,530,255,438.55 | 4,527,192,084.57 | 4,479,534,189.61 | 3,577,913,333.51 |
2. Employee benefits | 309,498,954.86 | 309,498,954.86 | ||
3. Social insurance charges | 154,678.65 | 216,582,569.65 | 216,582,569.65 | 154,678.65 |
Including: Medical insurance premium | 154,486.34 | 196,385,486.30 | 196,385,486.30 | 154,486.34 |
Industrial injury insurance premium | 107.45 | 3,067,060.76 | 3,067,060.76 | 107.45 |
Birth insurance premium | 84.86 | 17,130,022.59 | 17,130,022.59 | 84.86 |
4. Housing fund | 21,060,784.00 | 407,067,035.00 | 399,715,486.00 | 28,412,333.00 |
5. Labor union expenditure and personnel educational fund | 43,401,615.76 | 97,025,429.38 | 118,931,742.84 | 21,495,302.30 |
Total | 3,594,872,516.96 | 5,557,366,073.46 | 5,524,262,942.96 | 3,627,975,647.46 |
(3) Presentation of defined contribution plans
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
1. Basic pension insurance | 14,212.85 | 71,213,360.60 | 69,678,232.39 | 1,549,341.06 |
2. Unemployment insurance premium | 1,745,065.15 | 1,745,065.15 | ||
3. Corporate pension contribution | 164,347,517.90 | 164,347,517.90 | ||
Total | 14,212.85 | 237,305,943.65 | 235,770,815.44 | 1,549,341.06 |
22. Tax payable
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
VAT | 1,112,034,953.43 | 839,852,597.96 |
Consumption tax | 1,606,202,793.99 | 1,830,800,710.07 |
Corporate income tax | 2,516,790,391.94 | 5,001,143,551.02 |
Individual income tax | 37,055,886.19 | 13,250,079.02 |
Urban maintenance and construction tax | 248,199,304.35 | 116,343,916.81 |
Property tax | 725,078.38 | 369,637.06 |
Stamp duty | 831,884.22 | 645,760.98 |
Land use tax | 1,075,376.54 | 1,079,906.23 |
Education surcharge | 11,579,730.23 | 81,365,635.62 |
Local education surcharge | 7,673,369.90 | 54,248,855.59 |
Environmental protection tax | 31,561.50 | 18,621.28 |
Resource tax | 47,317.20 | |
Total | 5,542,200,330.67 | 7,939,166,588.84 |
Other notes:
The taxes of the Company depend on the amount verified and imposed by the tax authorities.
23. Other payables
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Dividend payable | 37,918,093.23 | |
Other payables | 2,762,845,488.90 | 2,292,680,733.51 |
Total | 2,800,763,582.13 | 2,292,680,733.51 |
(1) Dividend payable
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Dividends payable by subsidiaries to minority shareholders | 37,918,093.23 | |
Total | 37,918,093.23 |
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Image publicity expense and sales promotional expense | 1,722,127,207.54 | 1,178,396,467.55 |
Deposit | 816,163,308.72 | 703,073,760.13 |
Accrued expenses | 230,340,302.12 | |
Money collected or paid for another | 54,932,275.78 | 48,691,583.55 |
Claims from safeguarding rights | 43,349,435.78 | 42,291,712.18 |
Others | 126,273,261.08 | 89,886,907.98 |
Total | 2,762,845,488.90 | 2,292,680,733.51 |
2) Significant other payables over 1 year
Unit: RMB Yuan
Item | Ending balance | Reason for outstanding or carrying forward |
Deposit | 89,403,367.23 | |
Total | 89,403,367.23 | -- |
24. Other current liabilities
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Taxes to be carried forward | 1,117,452,799.61 | 1,430,705,818.80 |
Total | 1,117,452,799.61 | 1,430,705,818.80 |
25. Deferred income
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance | Cause |
Government subsidy | 266,325,368.40 | 10,372,000.04 | 255,953,368.36 | ||
Total | 266,325,368.40 | 10,372,000.04 | 255,953,368.36 | -- |
Projects involving government subsidies:
Unit: RMB Yuan
Liabilities | Beginning balance | New subsidies for current period Amount | Amount recognized as non-operating revenue in current year | Amount recognized as other incomes | Amount offset against costs and expenses in current year | Other changes | Ending balance | Asset-related /income-related |
90-Thousand-Ton Pottery Jar Aging Spirit Room Technical Innovation Project (Phase I) | 181,242,000.22 | 6,712,666.56 | 174,529,333.66 | Asset-related | ||||
Brewery Wastewater Comprehensive Treatment Project | 15,450,000.00 | 750,000.00 | 14,700,000.00 | Asset-related | ||||
Wastewater Comprehensive Treatment and Transformation Project | 13,799,999.95 | 333,333.36 | 13,466,666.59 | Asset-related | ||||
Songgong River (Wuliangye Section) Comprehensive Treatment Project | 10,551,166.64 | 357,666.72 | 10,193,499.92 | Asset-related | ||||
Wuliangye Industrial Park Construction Project | 10,000,000.00 | 10,000,000.00 | Asset-related | |||||
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 10,000,000.00 | 2,813,600.00 | 10,000,000.00 | Asset-related | ||||
Technical Upgrading Project of the Quality Control, Quality | 9,270,000.03 | 343,333.32 | 8,926,666.71 | Asset-related |
Inspection and Testing Center | ||||||||
Wastewater Treatment System Upgrading and Renovation Project | 8,639,999.92 | 320,000.04 | 8,319,999.88 | Asset-related | ||||
Technical Upgrading Project of the 60-Thousand-Ton Maotai-Flavor Liquor Pottery Jar Aging Room | 2,359,999.76 | 590,000.04 | 1,769,999.72 | Asset-related | ||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase I) | 1,833,035.22 | 219,999.96 | 1,613,035.26 | Asset-related | ||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase II) | 500,000.00 | 500,000.00 | Asset-related | |||||
Shiergoubao Production Line Technical Upgrading Project | 360,000.00 | 120,000.00 | 240,000.00 | Asset-related | ||||
Industrial development funds | 1,000,000.00 | 1,000,000.00 | Income-related | |||||
Informatization and big data application | 729,166.66 | 125,000.04 | 604,166.62 | Asset-related | ||||
Subsidy for national green plant of 2018 | 500,000.00 | 500,000.00 | Income-related | |||||
Provincial special funds for intellectual property | 90,000.00 | 90,000.00 | Income-related | |||||
Total | 266,325,368.40 | 10,372,000.04 | 255,953,368.36 |
26. Capital stock
Unit: RMB Yuan
Beginning balance | Increase/decrease (+, -) | Ending balance | |||||
Issuance of new shares | Bonus share | Capitalization of public reserve fund | Others | Sub-total | |||
Sum of shares | 3,881,608,005.00 | 3,881,608,005.00 |
27. Capital reserve
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Capital premium (capital stock premium) | 2,682,523,702.98 | 2,682,523,702.98 | ||
Other capital reserve | 123,383.17 | 123,383.17 | ||
Total | 2,682,647,086.15 | 2,682,647,086.15 |
28. Surplus reserve
Unit: RMB Yuan
Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Statutory surplus reserves | 16,092,197,023.01 | 3,606,328,972.50 | 19,698,525,995.51 | |
Total | 16,092,197,023.01 | 3,606,328,972.50 | 19,698,525,995.51 |
29. Undistributed profit
Unit: RMB Yuan
Item | Current period | Previous period |
Undistributed profit at the end of previous period before adjustment | 51,634,248,548.06 | 43,802,603,958.99 |
Undistributed profit at the beginning of the period after adjustment | 51,634,248,548.06 | 43,802,603,958.99 |
Plus: Net profits attributable to the owners of parent company in current period | 19,954,809,594.52 | 17,402,164,190.16 |
Less: Appropriation of statutory surplus reserves | 3,606,328,972.50 | 2,971,785,992.59 |
Common share dividends payable | 8,539,537,611.00 | 6,598,733,608.50 |
Ending undistributed profit | 59,443,191,559.08 | 51,634,248,548.06 |
Details of undistributed profit at the beginning of the adjustment period:
1). The beginning undistributed profit is adjusted by RMB 0.00 due to the retroactive adjustmentaccording to the Accounting Standards for Business Enterprise and relevant new provisions.
2). The beginning undistributed profit is adjusted by RMB 0.00 due to changes in accountingpolicies.
3). The beginning undistributed profit is adjusted by RMB 0.00 due to correction of major accountingerrors.
4). The beginning undistributed profit is adjusted by RMB 0.00 due to changes in the combinationscope arising from the same control.
5). The beginning undistributed profit is adjusted by RMB 0.00 in total due to other adjustments.
30. Operating revenue and operating cost
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period | ||
Revenue | Cost | Revenue | Cost | |
Primary business | 56,786,051,615.16 | 14,362,156,374.57 | 49,857,555,489.83 | 12,578,575,730.65 |
Other businesses | 535,007,837.99 | 449,805,104.08 | 260,550,387.31 | 223,684,216.69 |
Total | 57,321,059,453.15 | 14,811,961,478.65 | 50,118,105,877.14 | 12,802,259,947.34 |
Whether the lower of net profit before or after deduction of non-recurring profit and loss is negative
□ Yes √ No
Information related to revenue from liquor products in the primary business revenue:
Unit: RMB Yuan
Contracts classification | Eastern Region | Southern Region | Western Region | Northern Region | Central Region | Total |
Product type | ||||||
Wuliangye products | 12,482,563,493.61 | 5,045,313,472.82 | 14,266,939,100.35 | 5,199,208,238.35 | 7,066,604,045.96 | 44,060,628,351.09 |
Series liquor products | 1,703,467,453.10 | 578,468,683.96 | 4,226,770,672.23 | 588,238,705.05 | 1,276,498,001.05 | 8,373,443,515.39 |
Classification by sales channel | ||||||
On-line | 159,627,636.50 | 10,993,601.57 | 933,826,426.97 | 837,151,895.48 | 14,673,948.68 | 1,956,273,509.20 |
Off-line | 14,026,403,310.21 | 5,612,788,555.21 | 17,559,883,345.61 | 4,950,295,047.92 | 8,328,428,098.33 | 50,477,798,357.28 |
Classification by sales model | ||||||
Distribution models | 12,598,450,566.24 | 4,642,621,184.49 | 16,419,972,018.45 | 4,372,948,931.19 | 7,345,760,192.45 | 45,379,752,892.82 |
Direct sales model | 1,587,580,380.47 | 981,160,972.29 | 2,073,737,754.13 | 1,414,498,012.21 | 997,341,854.56 | 7,054,318,973.66 |
Total | 14,186,030,946.71 | 5,623,782,156.78 | 18,493,709,772.58 | 5,787,446,943.40 | 8,343,102,047.01 | 52,434,071,866.48 |
Information related to performance obligations:
Revenue is recognized at the point when the Company completes its contractual performance obligations when the customer obtains control of thegoods to which it belongs in the contractual agreement.
Information related to the transaction price apportioned to the remaining performance obligation:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not completed at the end ofthe reporting period was RMB 8,618,543,467.25.
31. Tax and surcharges
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Consumption tax | 6,528,819,159.02 | 5,574,554,509.16 |
Urban maintenance and construction tax | 852,468,951.35 | 765,970,059.85 |
Education surcharge | 366,214,108.43 | 328,844,515.77 |
Resource tax | 137,241.30 | 372,276.20 |
Property tax | 34,344,217.68 | 28,945,716.04 |
Land use tax | 50,029,296.62 | 50,020,995.02 |
Vehicle and vessel use tax | 586,715.18 | 13,797.41 |
Stamp duty | 14,999,803.23 | 13,660,117.60 |
Local education surcharge | 243,586,461.76 | 219,840,795.95 |
Environmental protection tax | 1,162,641.53 | 2,120,319.55 |
Total | 8,092,348,596.10 | 6,984,343,102.55 |
32. Selling expenses
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Image publicity expense | 1,148,203,672.92 | 987,687,876.55 |
Sales promotional expense | 3,302,764,255.56 | 3,008,319,662.93 |
Storage and logistics expenses | 260,214,712.62 | 350,991,941.23 |
Expenses of labour | 470,739,623.11 | 331,708,441.32 |
Other expenses | 396,996,259.77 | 306,871,414.74 |
Total | 5,578,918,523.98 | 4,985,579,336.77 |
Notes: In accordance with the new revenue standard, transportation costs directly related to theperformance of contracts were transferred from "selling expenses" to "operating costs" in the currentperiod.
33. Administrative expenses
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Comprehensive expenses of the Company (including travel, office, expenses of the board of directors, employee remuneration, labor insurance, labor protection appliances, etc) | 966,318,139.08 | 1,148,066,122.90 |
Rents | 361,949,846.81 | 357,228,294.55 |
Trademark and logo royalties | 639,427,170.39 | 580,070,408.13 |
Comprehensive service fee | 91,977,989.83 | 67,614,607.22 |
Others | 549,856,539.98 | 502,367,715.29 |
Total | 2,609,529,686.09 | 2,655,347,148.09 |
34. Research and development expense
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Comprehensive expenses (including travel, office, payroll, labor insurance, labor protection appliances, etc.) | 73,819,430.63 | 53,752,944.91 |
Material expenses | 18,616,952.02 | 31,810,442.56 |
Product design fees | 12,189,610.30 | 14,787,253.09 |
Depreciation and amortization expenses | 8,339,539.69 | 7,051,081.97 |
Others | 18,349,692.69 | 18,958,698.58 |
Total | 131,315,225.33 | 126,360,421.11 |
35. Financial expenses
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Interest expenditure | ||
Less: Interest revenue | 1,521,933,975.40 | 1,416,398,912.72 |
Exchange loss | 128,944.28 | 134,662.81 |
Less: Exchange gains | 89,237.71 | 202,724.12 |
Service charge of financial institutions | 1,550,017.99 | 1,224,741.74 |
Others | 34,825,050.63 | -15,503,633.45 |
Total | -1,485,519,200.21 | -1,430,745,865.74 |
Notes: The rest are mainly note discount expenses.
36. Other incomes
Unit: RMB Yuan
Sources of other incomes | Amount in current period | Amount in previous period |
Government subsidy | 105,648,782.20 | 130,434,159.51 |
Tax refunds | 56,724,988.21 | 29,278,082.30 |
Total | 162,373,770.41 | 159,712,241.81 |
Notes:
1. Refer to the Note “VII. 48. Government subsidy” for details of government subsidies.
2. The tax refunds are the VAT refunds received by the Company, refer to the Note “VI. Taxes, 2. Taxpreference”.
37. Investment income
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Long-term equity investment income accounted by equity method | 93,504,494.16 | 92,500,753.05 |
Total | 93,504,494.16 | 92,500,753.05 |
38. Credit impairment loss
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Bad debt loss of other receivables | -1,480,304.84 | -644,388.36 |
Bad debt loss of accounts receivable | 2,504,725.68 | -489,191.91 |
Total | 1,024,420.84 | -1,133,580.27 |
39. Asset impairment loss
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
II. Losses for inventory falling price and losses for impairment of contract performance costs | -13,664,476.45 | -3,020,763.91 |
V. Fixed asset impairment losses | -448,709.53 | |
Total | -14,113,185.98 | -3,020,763.91 |
40. Gain from disposal of assets
Unit: RMB Yuan
Source of gain from disposal of assets | Amount in current period | Amount in previous period |
Disposal of non-current assets | 1,129,293.57 | 2,779,400.03 |
Total | 1,129,293.57 | 2,779,400.03 |
41. Non-operating revenue
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period | Amounts recorded into current non-recurring profit or loss |
Penalty revenue | 9,485,442.44 | 5,986,339.09 | 9,485,442.44 |
Gains from scrap of non-current assets | 151,265.50 | 909,663.24 | 151,265.50 |
Others | 31,025,244.38 | 22,994,270.32 | 31,025,244.38 |
Total | 40,661,952.32 | 29,890,272.65 | 40,661,952.32 |
42. Non-operating expenditure
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period | Amounts recorded into current non-recurring profit or loss |
Donations | 160,898,370.13 | 147,731,056.86 | 160,898,370.13 |
Penalty expenditure | 251,432.49 | 266,281.96 | 251,432.49 |
Loss on scrap of non-current assets | 6,345,206.99 | 5,260,675.33 | 6,345,206.99 |
Abnormal loss | 80,408.09 | 29,395.82 | 80,408.09 |
Others | 21,063,253.13 | 16,390,656.88 | 21,063,253.13 |
Total | 188,638,670.83 | 169,678,066.85 | 188,638,670.83 |
Other notes:
The external donations mainly consist of RMB 139,670,000 to Sichuan Wuliangye Charity Fund andRMB 20 million to Sichuan University Education Foundation Special Fund for High-end Talents. Amongwhich, donations to Sichuan Wuliangye Charity Fund include: RMB 70 million to the Wuliangye RuralRevitalization Industry Road and the RMB 300 million bill donation project; RMB 30 million to theWuliangye Education Fund; RMB 18.58 million to the Yibin City Sanzhou area poverty alleviation anddisaster relief vehicle project; RMB 9 million to the Children's Home "Family-type Foster Care Center"Project, RMB 6.6 million to poverty alleviation projects in Xingwen County, Litang County, PingshanCounty and Leibo County, RMB 2.19 million for the network information technology classroom project ofLitang Middle School to help fight poverty, RMB 1.5 million to Yibin Care for the Next GenerationFoundation, RMB 1 million to help implementing the "Purchase Goods of Yi Nationality, Send Love toLiangshan" project in Liangshan Prefecture, RMB 0.7 million to Jieji Village, Pingbian Yi Township,Pingshan County to match the standard and fill the shortage, and RMB 0.1 million to Litang students inneed of financial aid.
43. Income tax expenses
(1) List of income tax expenses
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Current income tax expenses | 7,093,786,409.11 | 6,163,289,027.89 |
Deferred income tax expenses | -328,679,600.95 | -285,532,262.97 |
Total | 6,765,106,808.16 | 5,877,756,764.92 |
(2) Accounting profit and income tax expense adjustment process
Unit: RMB Yuan
Item | Amount in current period |
Total profit | 27,678,447,217.70 |
Income tax expense calculated with statutory/applicable tax rates | 6,919,611,804.43 |
Impact of different tax rates applicable to subsidiaries | -96,159,078.75 |
Impact on adjustment of income tax in previous periods | -10,840,567.61 |
Impact of nontaxable revenue | -23,376,123.54 |
Impact of non-deductible costs, expenses and losses | 2,314,465.17 |
Impact of deductible losses of deferred income tax assets which have not been recognized in the previous period | -18,996,398.31 |
Impact of deductible temporary differences or deductible losses of deferred income tax assets which have not been recognized in current period | 6,496,812.71 |
Impact of weighted deduction for salary of the disabled | -12,258,131.94 |
Impact of weighted deduction for research and development expenses | -454,744.38 |
Impact of one-time deduction of fixed assets | -1,231,229.62 |
Income tax expenses | 6,765,106,808.16 |
44. Items of cash flow statement
(1) Other cash received relating to operating activities
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Interest revenue | 1,823,793,053.16 | 1,042,012,585.56 |
Deposits and government subsidies received | 419,867,382.82 | 421,764,044.99 |
Total | 2,243,660,435.98 | 1,463,776,630.55 |
(2) Other cash paid relating to operating activities
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Expenses relating to selling | 1,882,862,475.29 | 1,766,874,668.53 |
Comprehensive service fee | 91,977,989.83 | 60,889,059.16 |
Trademark and logo royalties | 639,427,170.39 | 477,571,873.51 |
Rents | 361,949,846.81 | 337,348,167.14 |
Deposits, current accounts and other out-of-pocket expenses paid | 984,075,848.21 | 722,835,412.55 |
Total | 3,960,293,330.53 | 3,365,519,180.89 |
45. Supplementary Information to Cash Flow Statement
(1) Supplementary Information to Cash Flow Statement
Unit: RMB Yuan
Supplementary information | Amount of current period | Amount of previous period |
1. Reconciliation from net profits to cash flows from operating activities: | -- | -- |
Net profit | 20,913,340,409.54 | 18,228,255,278.61 |
Plus: Provision for impairment of assets | 5,926,341.01 | 3,436,827.62 |
Fixed assets depreciation, | 435,670,691.93 | 418,406,696.04 |
oil and gas assets depletion, and productive biological assets depreciation | ||
Depreciation of right-of-use assets | ||
Amortization of intangible assets | 27,577,383.23 | 19,235,638.90 |
Amortization of long-term deferred expenses | 48,208,049.76 | 52,056,059.84 |
Loss from disposals of fixed assets, intangible assets and other long-term assets (gains indicated with “-”) | -1,129,293.57 | -2,779,400.03 |
Scrap loss of fixed assets (gains indicated with “-”) | 6,193,941.49 | 4,351,012.09 |
Loss from changes of fair value (income indicated with “-”) | ||
Financial expenses (gains indicated with “-”) | 130,439.21 | -63,661.42 |
Investment loss (gains indicated with “-”) | -93,504,494.16 | -92,500,753.05 |
Decrease in deferred income tax assets (increase indicated with “-”) | -328,679,600.95 | -285,532,262.97 |
Increase in deferred income tax liabilities (loss indicated with “-”) | ||
Decrease in inventory (increase indicated with “-”) | 444,843,931.64 | -1,886,461,774.33 |
Decrease in operating receivables (increase indicated with “-”) | -2,121,902,869.11 | -2,354,601,239.25 |
Increase in operating payables (decrease indicated with “-”) | -4,638,347,336.81 | 9,008,269,618.61 |
Others | ||
Net cash flows from operating activities | 14,698,327,593.21 | 23,112,072,040.66 |
2. Significant investment and financing activities not involving cash: | -- | -- |
Conversion of debt into capital | ||
Convertible corporate bonds maturing within one year | ||
Fixed assets under financing lease | ||
3. Net change in cash and cash equivalents: | -- | -- |
Ending balance of cash | 66,967,091,800.45 | 63,138,829,242.88 |
Less: Beginning balance of | 63,138,829,242.88 | 48,888,727,143.63 |
cash | ||
Plus: Ending balance of cash equivalents | 65,304,080.91 | |
Less: Beginning balance of cash equivalents | 65,304,080.91 | 71,321,754.32 |
Net increase in cash and cash equivalents | 3,762,958,476.66 | 14,244,084,425.84 |
(2) Composition of cash and cash equivalents
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
I. Cash | 66,967,091,800.45 | 63,138,829,242.88 |
Including: Cash on hand | 25,283.79 | 28,179.40 |
Bank deposit readily available for payment | 66,967,063,316.29 | 63,138,797,874.22 |
Other cash and cash equivalents readily available for payment | 3,200.37 | 3,189.26 |
II. Cash equivalents | 65,304,080.91 | |
Deposit of notes matured within three months | 65,304,080.91 | |
III. Ending balance of cash and cash equivalents | 66,967,091,800.45 | 63,204,133,323.79 |
46. Assets with restricted ownership or use right
Unit: RMB Yuan
Item | Ending book value | Reasons for limitation |
Cash and cash equivalents | 329,069,085.01 | Deposit of bank acceptance bill of RMB 328,818,561.81 and other deposits of RMB 250,523.20. |
Accounts receivable financing | 52,470,000.00 | Pledge of bank acceptance bill |
Total | 381,539,085.01 | -- |
47. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB Yuan
Item | Ending balance of foreign currency | Conversion exchange rate | Ending balance converted to RMB |
Cash and cash equivalents | -- | -- | |
Including: USD | 1,070,821.78 | 6.5249 | 6,987,005.03 |
Euro | |||
Hong Kong Dollar | |||
Accounts receivable | -- | -- | |
Including: USD | |||
Euro | |||
Hong Kong Dollar | |||
Long-term loans | -- | -- | |
Including: USD | |||
Euro | |||
Hong Kong Dollar |
(2) Note on overseas operating entities, including disclosure of overseas primary businessplaces, bookkeeping currency and selection basis for important overseas operating entities,and disclosure of the reasons for any change in the bookkeeping currency.
□ Applicable √ Not applicable
48. Government subsidy
(1) Basic information of government subsidies
Unit: RMB Yuan
Type | Amount | Presented items | Amounts recorded into current profit or loss |
90-Thousand-Ton Pottery Jar Aging Spirit Room Technical Innovation Project (Phase I) | 201,380,000.00 | Deferred income | 6,712,666.56 |
Brewery Wastewater Comprehensive Treatment Project | 22,500,000.00 | Deferred income | 750,000.00 |
Songgong River (Wuliangye Section) Comprehensive Treatment Project | 10,730,000.00 | Deferred income | 357,666.72 |
Technical Upgrading Project of the Quality Control, Quality Inspection and Testing Center | 10,300,000.00 | Deferred income | 343,333.32 |
Wastewater Comprehensive Treatment and Transformation Project | 10,000,000.00 | Deferred income | 333,333.36 |
Wuliangye Industrial Park Construction Project | 10,000,000.00 | Deferred income | |
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 10,000,000.00 | Deferred income | 2,813,600.00 |
Wastewater Treatment System Upgrading and Renovation Project | 9,600,000.00 | Deferred income | 320,000.04 |
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase I) | 6,600,000.00 | Deferred income | 219,999.96 |
Technical Upgrading Project of the 60-Thousand-Ton Maotai-Flavor Liquor Pottery Jar Aging Room | 5,900,000.00 | Deferred income | 590,000.04 |
Shiergoubao Production Line Technical Upgrading Project | 1,200,000.00 | Deferred income | 120,000.00 |
Informatization and big data application | 1,000,000.00 | Deferred income | 125,000.04 |
Industrial development funds | 1,000,000.00 | Deferred income | |
Subsidy for national green plant of 2018 | 500,000.00 | Deferred income | |
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase II) | 500,000.00 | Deferred income | 500,000.00 |
Provincial special funds for intellectual property | 90,000.00 | Deferred income | |
VAT deduction | 19,895,187.06 | Other incomes | 19,895,187.06 |
Huai Bin County Finance Bureau investment promotion subsidy | 14,452,862.66 | Other incomes | 14,452,862.66 |
Industrial development funds | 13,420,000.00 | Other incomes | 13,420,000.00 |
Industrial enterprise subsidies | 13,415,000.00 | Other incomes | 13,415,000.00 |
Enterprise support funds | 8,094,872.60 | Other incomes | 8,094,872.60 |
Refund of charges of individual income tax | 5,241,091.35 | Other incomes | 5,241,091.35 |
Subsidies of 2019 for several policies of fastening the construction of modern powerful industrial cities and promoting industrial park innovation, reform and transformation development | 3,800,000.00 | Other incomes | 3,800,000.00 |
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 2,813,600.00 | Other incomes | 2,813,600.00 |
Special fund for talent development | 2,493,600.00 | Other incomes | 2,493,600.00 |
Special development fund of Yibin County Economic and Commercial Informatization and Science and Technology Bureau | 2,380,000.00 | Other incomes | 2,380,000.00 |
Yibin Nanxi District Economic Cooperation and Foreign Affairs Bureau award | 1,875,000.00 | Other incomes | 1,875,000.00 |
Jiang'an County Financial Headquarters Economic Development subsidy | 1,587,264.00 | Other incomes | 1,587,264.00 |
2019 Yu Liquor overall image promotion special promotion subsidy and Yu Liquor development funds | 1,140,000.00 | Other incomes | 1,140,000.00 |
Science and technology project funds | 1,070,000.00 | Other incomes | 1,070,000.00 |
New apprenticeship training subsidy for enterprises in Cuiping District, Yibin City | 918,000.00 | Other incomes | 918,000.00 |
Glass bottle green manufacturing line transformation pilot project | 800,000.00 | Other incomes | 800,000.00 |
Subsidies for stabilizing industrial economic growth to support enterprises | 362,000.00 | Other incomes | 362,000.00 |
2018 urban grassroots Party building subsidies | 300,000.00 | Other incomes | 300,000.00 |
2019 processing trade and bonded logistics business subsidies | 210,800.00 | Other incomes | 210,800.00 |
Lead the development of industry standard subsidies | 200,000.00 | Other incomes | 200,000.00 |
Special fund for IPRs in Sichuan Province in 2019 | 100,000.00 | Other incomes | 100,000.00 |
Entrepreneurship-led employment subsidies | 95,177.73 | Other incomes | 95,177.73 |
2019 Yibin patent subsidies | 82,500.00 | Other incomes | 82,500.00 |
Linzhang County Environmental Protection Bureau’s subsidies for low nitrogen combustion transformation of coal-fired boilers | 80,000.00 | Other incomes | 80,000.00 |
Advanced enterprises of Lingang District Management Committee in 2019 | 78,900.00 | Other incomes | 78,900.00 |
Special funds for the development of functional microorganism technology to improve the quality of solid strong-flavor liquor | 78,200.00 | Other incomes | 78,200.00 |
Other fragmentary government subsidy | 292,726.76 | 292,726.76 |
Total | 396,576,782.16 | 105,648,782.20 |
(2) Return of government subsidies
□ Applicable √ Not applicable
VIII. Changes in consolidation scope
1. Business combination involving enterprises not under the same controlThere is no business combination involving enterprises not under the same control.
2. Business combination involving enterprises under the same controlThere is no business combination involving enterprises under the same control.
3. Counter purchase
There is no subsidiary acquired by counter purchase during the reporting period.
4. Disposal of subsidiary
There is no disposal of subsidiary during the reporting period.
5. Changes in consolidation scope for other reasons
Explain the changes in consolidation scope for other reasons (such as, establishment of newsubsidiary, liquidation of subsidiaries, etc.) and relevant information:
On April 15, 2020, the Company and Wuliangye Group, as reviewed and approved by the 72ndmeeting of the fifth board of directors of the Company, jointly funded and established "SichuanWuliangye New Retail Management Co., Ltd." (hereinafter referred to as the "New Retail Company"), ofwhich the registered capital was RMB 100 million. The Company contributed RMB 90 million, taking up90% of the registered capital; Wuliangye Group contributed RMB 10 million, taking up 10% of theregistered capital; and Sichuan Wuliangye New Retail Management Co., Ltd. is included in theconsolidation scope of the Company since its establishment.
IX. Interests in other entities
1. Interests in subsidiaries
(1) Compositions of the Group
Name of subsidiary | Primary business place | Registered address | Nature of business | Shareholding proportion | Way of acquisition | |
Directly | Indirectly | |||||
Sichuan Yibin Wuliangye Winery Co., Ltd. | Yibin | Yibin | Manufacturing | 99.00% | 0.99% | Establishment |
Yibin Wuliangye Liquor Sales Co., Ltd. | Yibin | Yibin | Business | 95.00% | Establishment | |
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. | Yibin | Yibin | Business | 95.00% | Establishment | |
Yibin Wuliangchun Brand Marketing Co., Ltd | Yibin | Yibin | Business | 95.00% | Establishment | |
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. | Yibin | Yibin | Business | 95.00% | Establishment | |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | Yibin | Yibin | Business | 99.00% | 0.95% | Establishment |
Yibin Jiangjiu Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Establishment | |
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. | Yibin | Yibin | Manufacturing | 51.00% | Establishment | |
Sichuan Jinwuxin Technology Co., Ltd. | Yibin | Yibin | Business | 51.00% | Business combination |
involving enterprises not under the same control | ||||||
Sichuan Jiebeike Environmental Technology Co., Ltd. | Yibin | Yibin | Engineering | 26.01% | Establishment | |
Yibin Changjiangyuan Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Establishment | |
Yibin Changjiangyuan Trade Co., Ltd. | Yibin | Yibin | Business | 100.00% | Establishment | |
Yibin Changjiangyuan Brewery Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Establishment | |
Yibin Wuliangye Organic Agriculture Development Co., Ltd. | Yibin | Yibin | Agriculture | 100.00% | Establishment | |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 90.00% | Establishment | |
Yibin Xianlin Liquor Marketing Co., Ltd. | Yibin | Yibin | Business | 90.00% | Establishment | |
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. | Yibin | Yibin | Business | 42.30% | Establishment | |
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | Yibin | Yibin | Manufacturing | 97.00% | 1.53% | Establishment |
Yibin Xinxing Packaging Co., Ltd. | Yibin | Yibin | Business | 98.53% | Establishment | |
Sichuan Yibin Plastic Packaging Materials Company Limited | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving enterprises not under the same control | |
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving enterprises not under the same control | |
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving enterprises not under the same control | |
Sichuan Yibin Push Group 3D Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving enterprises not under the same control |
Guangdong Foshan Plastic Packaging Materials Company Limited | Foshan | Foshan | Manufacturing | 100.00% | Establishment | |
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd. | Yibin | Yibin | Investment | 95.00% | Establishment | |
Wuhou Cultural Development Co., Ltd. | Beijing | Beijing | Cultural industry | 70.30% | Establishment | |
Yibin Zhenwushan Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Establishment | |
Yibin Shiji Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Establishment | |
Yibin Cuipingshan Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Establishment | |
Wuliangye Dashijie (Beijing) Trade Co., Ltd. | Beijing | Beijing | Business | 95.00% | Establishment | |
Handan Yongbufenli Liquor Co., Ltd. | Handan | Handan | Manufacturing | 51.00% | Establishment | |
Linzhang Desheng Wine Trade Co., Ltd. | Handan | Handan | Business | 51.00% | Establishment | |
Handan Yongbufenli Sales Co., Ltd. | Handan | Handan | Business | 51.00% | Establishment | |
Huaibin Wubin Consultation Service Co., Ltd. | Huaibin | Huaibin | Consultation | 100.00% | Business combination involving enterprises not under the same control | |
Wuguchun Jiu Ye Co., Henan. China | Huaibin | Huaibin | Manufacturing | 11.03% | 40.00% | Business combination involving enterprises not under the same control |
Huaibin Tenglong Trade Co., Ltd. | Huaibin | Huaibin | Business | 51.03% | Establishment | |
WU JIU YE SALES CO., HENAN. China | Huaibin | Huaibin | Business | 51.03% | Establishment | |
Sichuan Wuliangye Culture Tourism Development Co., Ltd | Yibin | Yibin | Tourism industry | 80.00% | Establishment | |
Sichuan Wuliangye Tourist Agency Co., Ltd. | Yibin | Yibin | Tourism industry | 80.00% | Establishment | |
Yibin Wuliangye Creart Co., Ltd. | Yibin | Yibin | Business | 45.00% | Establishment | |
Wuliang NongXiang Series Baijiu Yibin Co., Ltd. | Yibin | Yibin | Business | 95.00% | Establishment | |
Sichuan Wuliangye New Retail Management Co., Ltd. | Chengdu | Chengdu | Business | 90.00% | Establishment |
Note on the difference between shareholding proportion and proportion of votes in subsidiary:
As reviewed and approved by the 5th board of directors of the Company, the Company, BeijingSparkle Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and ChangjiangGrowth Capital Co., Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafterreferred to as the “Creart Company”), of which the registered capital is RMB 100 million. The Companycontributes RMB 45 million, taking up 45% of the registered capital. On December 9, 2014, ShanghaiYue Shan Investment Management Co., Ltd. and the Company entered into the Investment CooperationAgreement of Yibin Wuliangye Creart Co., Ltd. through mutual negotiation, Shanghai Yue ShanInvestment Management Co., Ltd. entrusted the Company for management of the 6% equity held by it in
Creart Company from the effective date of the agreement till the duration of Creart Company. TheCompany will be entitled to the right of management of Shanghai Yue Shan Investment ManagementCo., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart Company. TheCompany 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 February 23, 2018, ChangjiangGrowth Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment ManagementCo., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; asresolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle InvestmentCo., Ltd. transferred 20% of the equity to Beijing Sparkle Hengye Education and Cultural DevelopmentCo., Ltd.; after the said equity transfer, the Company still holds 51% of the voting right at shareholdermeetings of Creart Company, and therefore it is included in the consolidated 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:
1. As reviewed and approved by the 5th board of directors of the Company, the Company, BeijingSparkle Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and ChangjiangGrowth Capital Co., Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafterreferred to as the “Creart Company”), of which the registered capital is RMB 100 million. The Companycontributes RMB 45 million, taking up 45% of the registered capital. On December 9, 2014, ShanghaiYue Shan Investment Management Co., Ltd. and the Company entered into the Investment CooperationAgreement of Yibin Wuliangye Creart Co., Ltd. through mutual negotiation, Shanghai Yue ShanInvestment Management Co., Ltd. entrusted the Company for management of the 6% equity held by it inCreart Company from the effective date of the agreement till the duration of Creart Company. TheCompany will be entitled to the right of management of Shanghai Yue Shan Investment ManagementCo., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart Company. TheCompany 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 February 23, 2018, ChangjiangGrowth Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment ManagementCo., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; asresolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle InvestmentCo., Ltd. transferred 20% of the equity to Beijing Sparkle Hengye Education and Cultural DevelopmentCo., Ltd.; after the said equity transfer, the Company still holds 51% of the voting right at shareholdermeetings of Creart Company, and therefore it is included in the consolidated statements.
2. On October 26, 2015, as reviewed and adopted by the 10th meeting of the 5th board of directorsof the Company: Sichuan Yibin Wuliangye Group Xianlin Fruit Wine Co., Ltd. (which had been renamedas Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. in 2019), a controlling subsidiary of the Companyand contributing RMB 14.1 million (taking up 47% of the equity), Yibin Guotai Commerce and TradeCo.,Ltd. (which is now Yibin Guotai Supply Chain Management Co., Ltd.) and contributing RMB 11.4million (taking up 38% of the equity), and Guangzhou Jude Trade Co., Ltd., contributing RMB 4.5 million(taking up 15% of the equity), jointly established “Yibin Wuliangye Xinshengdai Liquor Co., Ltd.”(hereinafter referred to as “Xinshengdai Company”), of which the registered capital is RMB 30 million.Registration of Xinshengdai Company was completed on July 11, 2016. Its registered capital is RMB 30million. The board of directors of Xingshengdai Company consists of 5 directors. The Company holds 2/3of the voting rights in it, and therefore it is included in the consolidated statements.
(2) Important non-wholly owned subsidiaries
Unit: RMB Yuan
Name of subsidiary | Minority shareholders shareholding proportion | Current profits and losses attributable to minority shareholders | Current dividends declared to minority shareholders | Ending balance of minority equity |
Yibin Wuliangye Liquor Sales Co., Ltd. | 5.00% | 853,340,651.34 | 686,594,317.48 | 1,223,082,616.43 |
(3) Main financial information of important non-wholly owned subsidiaries
Unit: RMB Yuan
Name of subsidiary | Ending balance | |||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Yibin Wuliangye Liquor Sales Co., Ltd. | 38,220,982,171.89 | 845,669,041.27 | 39,066,651,213.16 | 14,895,619,601.97 | 14,895,619,601.97 | |
Beginning balance | ||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
43,177,094,335.69 | 670,748,625.90 | 43,847,842,961.59 | 23,011,738,027.70 | 23,011,738,027.70 |
Unit: RMB Yuan
Name of subsidiary | Amount in current period | |||
Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
Yibin Wuliangye Liquor Sales Co., Ltd. | 50,993,911,050.55 | 17,066,813,026.81 | 17,066,813,026.81 | 9,446,358,627.67 |
Amount in previous period | ||||
Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
46,559,665,282.40 | 15,289,221,216.27 | 15,289,221,216.27 | 17,588,142,720.27 |
2. Interests in joint venture arrangement or associates
(1) Important joint ventures or associates
Name of joint venture or associate | Primary business place | Registered address | Nature of business | Shareholding proportion | Accounting treatment of investment in joint ventures or associates | |
Directly | Indirectly | |||||
Oriental Outlook Media Co., Ltd. | Beijing | Beijing | Advertising industry | 49.00% | Equity method | |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Yibin | Yibin | Financial industry | 40.56% | Equity method | |
Yibin Jiamei Intelligent Packaging Co., Ltd. | Yibin | Yibin | Packaging and printing industry | 48.28% | Equity method |
Note on the difference between shareholding proportion and proportion of votes in joint ventures orassociates:
The basis of controlling the invested company even if holding less than 20% voting rights but havingsignificant influence on the invested company, or holding 20% or more than 20% voting rights but nothaving significant influence on the invested company:
(2) Main financial information of important associates
Unit: RMB Yuan
Ending balance/Amount in current period | Beginning balance/Amount in previous period | |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | |
Total assets | 38,112,303,722.15 | 47,753,623,863.80 |
Total liabilities | 33,620,219,849.48 | 44,990,128,067.29 |
Equity attributable to the shareholders of parent company | 4,492,083,872.67 | 2,763,495,796.51 |
Share of net assets calculated according to the shareholding proportion | 1,821,989,218.75 | 994,858,486.74 |
Book value of equity investment in associates | 1,821,989,218.75 | 994,858,486.74 |
Operating revenue | 549,652,714.68 | 458,658,749.74 |
Net profit | 228,588,076.16 | 247,562,604.36 |
Total comprehensive income | 228,588,076.16 | 247,562,604.36 |
(3) Main financial information of unimportant joint ventures and associates
Unit: RMB Yuan
Ending balance/Amount in current period | Beginning balance/Amount in previous period | |
Joint ventures: | -- | -- |
Total amount of the following items calculated by shareholding proportion | -- | -- |
Associates: | -- | -- |
Total book value of investments | 32,582,160.88 | 26,920,244.84 |
Total amount of the following items calculated by shareholding proportion | -- | -- |
--Net profit | 5,661,916.04 | 3,378,215.48 |
--Total comprehensive income | 5,661,916.04 | 3,378,215.48 |
3. Interests in the structured entity that is not included in the consolidated financial statements
Note on structured entity that is not included in the consolidated financial statements: None
X. Disclosure of fair value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Unit: RMB Yuan
Item | Fair value at the end of the period | |||
Fair value measurement at level I | Fair value measurement at level II | Fair value measurement at level III | Total | |
I. Continuous fair value measurement | -- | -- | -- | -- |
(I) Trading financial assets | ||||
1. Financial assets at fair value through profit or loss | ||||
(1) Debt instrument investment | ||||
(2) Equity instrument investment | ||||
(3) Derivative financial assets | ||||
2. Financial assets designated to be measured at fair value through profit or loss | ||||
(1) Debt instrument investment | ||||
(2) Equity instrument investment | ||||
(II) Other debt investments | ||||
(III) Other equity instrument investment | ||||
(IV) Investment properties | ||||
1. Land use right for lease | ||||
2. Buildings for rent | ||||
3. Land use right for lease held and ready to be transferred after appreciation | ||||
(V) Biological assets | ||||
1. Consumptive biological assets | ||||
2. Productive biological assets | ||||
(VI) Accounts receivable financing | 2,024,442,016.72 | 2,024,442,016.72 | ||
(VII) Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | ||
Total assets measured at fair value on an ongoing basis | 2,025,642,016.72 | 2,025,642,016.72 | ||
(VIII) Trading financial liabilities | ||||
Including: Trading bonds issued | ||||
Derivative financial liabilities | ||||
Others | ||||
(IX) Financial liabilities designated as measured at fair value through profit or loss | ||||
Total liabilities measured at fair value on an ongoing basis | ||||
II. Fair value measurement on a non-ongoing basis | -- | -- | -- | -- |
(I) Assets held for sale | ||||
Total assets measured at fair value on a non-ongoing basis | ||||
Total liabilities measured at fair value on a non-ongoing basis |
2. Basis for determining the market value of level I fair value measurement items on an ongoing
and non-ongoing basises
□ Applicable √ Not applicable
3. For level II fair value measurement items on an ongoing and non-ongoing basises,qualitative and quantitative information on the valuation techniques used and significantparameters
□ Applicable √ Not applicable
4. For level III fair value measurement items on an ongoing and non-ongoing basises,qualitative and quantitative information on the valuation techniques used and significantparametersAccounts receivable financing: Due to the short term of notes receivable held by the Company, andthe selling time, selling price and selling proportion cannot be estimated reliably, the Company measuresthe notes receivable according 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 thatare not traded in an active market, and its equity interest in the invested company is low and has nosignificant influence, it is not realistic and feasible to value the equity in the invested company using theincome approach or market approach, and there is no recent introduction of external investors to theinvested company or transfer of equity among shareholders that can be used as a reference basis fordetermining fair value. In addition, the Company has not found any significant changes in the internaland external environment of the invested company since the beginning of the year from the analysis ofthe relevant information available, therefore, it is a "limited circumstances" in which the carrying cost canbe used as the best estimate of the fair value, and therefore the fair value is based on the cost at the endof the year.
5. For level III fair value measurement items on an ongoing basis, reconciliation informationbetween beginning and ending carrying values and sensitivity analysis of unobservableparameters
□ Applicable √ Not applicable
6. For fair value measurement items on a continuous basis, if there is a conversion betweendifferent levels in the current period, the reasons for the conversion and the policy fordetermining the conversion time 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
XI. Related parties and related transactions
1. Note on parent company of the Company
Name of parent company | Registered address | Nature of business | Registered capital | Shareholding ratio of the parent company in the Company | Proportion of votes of the parent company in the Company |
Yibin Development Holding Group Co., Ltd. | Yibin | Investment | RMB 1,390 million | 34.43% | 34.43% |
Note on parent company of the Company:
Yibin Development Holding Group Co., Ltd is a wholly state-owned company funded andestablished by the People’s Government of Yibin City. Legal representative of the company is HuaShurui and its registered capital is RMB 1,390 million. Its business scope includes the state-ownedproperty right (including state-owned shares), state-owned assets and state investments as authorizedby the People’s Government of Yibin City. The company, as an investor, conducts capital managementand assets management by holding, shareholding, investment and receiving assignment, transfer,auction, and lease within the limits of authority.
Main functions of Yibin Development Holding Group Co., Ltd. include: First, holding state-ownedequity and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’sGovernment of Yibin City; second, raising funds for key construction projects as a investment andfinancing platform of the People’s Government of Yibin City, and investing in such projects by
shareholding and holding; third, promoting the maintenance and appreciation of the value ofstate-owned assets and economic development of the city by capital management and assetsmanagement.Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds100% of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00shares of the Company directly or indirectly, taking up 54.83% of the total capital stock of the Company.The State-owned Assets Supervision and Administration Commission of Yibin MunicipalGovernment is the ultimate controller of the Company.
2. Note on subsidiaries of the Company
Refer to the Note “IX. Interests in other entities” for information about subsidiaries of the Company.
3. Note on joint ventures and associates of the Company
Refer to the Note “IX. Interests in other entities” for information about important joint ventures andassociates of the Company.Other associates or joint ventures that conducted related party transactions with the Company incurrent period, or formed the balance of related party transactions with the Company in the previousperiods are as follows:
Name of joint venture or associate | Relationship with the Company |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Associates |
Yibin Jiamei Intelligent Packaging Co., Ltd. | Associates |
4. Note on other related parties
Names of other related parties | Relationship between other related parties and the Company |
Sichuan Yibin Wuliangye Group Co., Ltd. | Legal representative of the Company concurrently serves as the President (General Manager) of Wuliangye Group Company, and some directors and officers of the Company currently hold positions in Wuliangye Group Company; directly holding 20.40% equities of the Company |
Sichuan Anji Logistic Group Co., Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Yibin Anji Logistic Group Shenzhou Transportation Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Yibin Wuliangye Group I&E Co., Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Yibin Push Group Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Huanyu Trade Co. Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Yibin Push Mold Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Push Acetati Company Limited | Subsidiaries of Push Group Company |
Sichuan Sacred Mountain Molin Group Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Shengdi Trade Co. Ltd. | Subsidiaries of Sacred Mountain Molin Group |
Yibin Jinlong Trade Development Corporation | Subsidiaries of Wuliangye Group |
Sichuan Yibin Global Group Co., Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Yibin Licai Group Co., Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Subsidiaries of Global Group Company |
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Subsidiaries of Global Group Company |
Sichuan Yibin Push Drive Co., Ltd. | Subsidiaries of Push Group Company |
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Yibin Push Building Materials Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Yibin Push Auto Parts Co., Ltd. | Subsidiaries of Push Group Company |
Push Information & Automation (Chengdu) Co., Ltd. | Subsidiaries of Push Group Company |
Chengdu Global Special Glass Manufacturing Co., Ltd. | Subsidiaries of Global Group Company |
Sichuan Zhongke Better Technology Co., Ltd. | Subsidiaries of Global Group Company |
Sichuan Yibin Wuliangye Group Anji Logistic Shipping Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Yibin Ansage International Logistic Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Yibin Ansage Auto Service Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Sichuan Yibin Weilisi Float Glass Manufacturing Co., Ltd. | Subsidiaries of Global Group Company |
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Haida Rubber Group Co., Ltd. | Subsidiaries of Wuliangye Group |
Sichuan Tyre Rubber (Group) Co., Ltd. | Subsidiaries of Haida Rubber Group Co., Ltd. |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Baiweiyuan Food Co., Ltd. | Subsidiaries of Wuliangye Group |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Subsidiaries of Global Group Company |
Chengdu Ningjiang Machine Tool Sales Co., Ltd. | Subsidiaries of Push Group Company |
Yibin Push Linko Technology Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Putian Packaging Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Sacred Mountain Hechang Clothing Co., Ltd. | Subsidiaries of Sacred Mountain Molin Group |
Chengdu Sacred Mountain Clothing Company | Subsidiaries of Sacred Mountain Molin Group |
Yibin Push Assets Management Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Ansage Supply Chain Management Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Sichuan Andaxin Logistic Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Yibin Global Energy Conservation Service Co., Ltd. | Subsidiaries of Global Group Company |
Yibin Wuliangye Ecological Brewing Co., Ltd. | Subsidiaries of Health Wine Group Company |
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Jitai Automobile Sales & Service Co., Ltd. | Subsidiaries of Anji Logistic Group Co., Ltd. |
Yibin Wuliangye Fund Management Co., Ltd. | Subsidiaries of Wuliangye Group |
Wuming Tea Industry Holding Co., Ltd. | Subsidiaries of Wuliangye Group Fund Company |
Sichuan Linhu Tea Co., Ltd. | Subsidiaries of Wuliangye Group Fund Company |
Yibin Leitian Agricultural Development Co., Ltd. | Subsidiaries of Wuliangye Group Fund Company |
Sichuan Huansheng Pharmacy Co., Ltd. | Subsidiaries of Yibin Medicine |
Sinopharm Group Yibin Medicine Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Paper Industry Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Wucai Packaging Co., Ltd. | Subsidiaries of LICRI Group |
Sichuan Yibin Push Drive Co., Ltd. | Subsidiaries of Push Group Company |
Sichuan Wuliangye Health Wine Marketing Co., Ltd. | Subsidiaries of Health Wine Group Company |
Sichuan Nongwu E-commerce Co., Ltd. | Subsidiaries of Wuliangye Group Fund Company |
Sichuan Shengshan Hexu Import & Export Trading Co., Ltd. | Subsidiaries of Sacred Mountain Molin Group |
Chengdu Global Special-Glass Manufacture Co., Ltd. | Subsidiaries of Global Group Company |
Sichuan Shuzhan New Materials Co., Ltd. | Subsidiaries of Sacred Mountain Molin Group |
Yibin Jichi Automobile Sales Service Co., Ltd. | Subsidiaries of Sacred Mountain Molin Group |
Sichuan Yibin Wuliangye Group Pengcheng Electronics Instrument Co., Ltd. | Subsidiaries of Wuliangye Group |
Yibin Chuanhong Tea Group Co., Ltd. | Subsidiaries of Wuliangye Group Fund Company |
Yibin Ansage Auto Service Co., Ltd. Chhengdu Branch | Subsidiaries of Anji Logistic Group Co., Ltd. |
Sichuan Tyre Rubber (Group) Co., Ltd. | Subsidiaries of Haida Rubber Group Co., Ltd. |
5. Related transactions
(1) Related transaction of purchases and sales of goods, provision and acceptance of servicesPurchase of goods/acceptance of services
Unit: RMB Yuan
Related parties | Content of related transaction | Amount in current period | Amount in previous period |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Raw materials, etc. | 374,497,666.87 | 301,983,377.21 |
Sichuan Sacred Mountain Molin Group Co., Ltd. | Workwear, raw materials, etc. | 319,408,705.14 | 26,945,284.35 |
Wuming Tea Industry Holding Co., Ltd. | Tea, etc. | 141,263,221.53 | 7,222,346.19 |
Sichuan Yibin Push Group Co., Ltd. | RFID anti-counterfeit labels, etc. | 84,792,975.46 | 56,232,156.94 |
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | Liquors | 67,919,611.22 | |
Sichuan Yibin Push Mold Co., Ltd. | Molds, raw materials, etc. | 59,250,291.62 | 109,798,846.35 |
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Raw materials | 53,748,609.10 | 60,424,484.53 |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Raw materials, etc. | 44,301,991.81 | 110,639.79 |
Yibin Ansage International Logistic Co., Ltd. | Liquors | 44,251,327.38 | |
Yibin Jinlong Trade Development Corporation | Raw materials, etc. | 40,996,644.76 | 290,706,070.30 |
Sichuan Sacred Mountain Molin Group Co., Ltd. | Labor protection appliances, etc. | 38,714,015.75 | 24,336,543.65 |
Yibin Push Linko Technology Co., Ltd. | Raw materials | 26,536,541.38 | |
Yibin Wucai Packaging Co., Ltd. | Liquors | 25,865,591.46 | |
Sichuan Yibin Global Group Co., Ltd. | Paper products, etc. | 23,676,240.12 | |
Sichuan Yibin Push Drive Co., Ltd. | Raw materials, etc. | 18,984,916.66 | 23,294,806.98 |
Sichuan Wuliangye Health Wine Marketing Co., Ltd. | Glass bottle | 16,030,975.17 | |
Chengdu Global Special-Glass Manufacture Co., Ltd. | Industrial paperboard | 11,488,219.80 | |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Liquors | 11,196,235.86 | |
Sichuan Wuliangye Health Wine Marketing Co., Ltd. | Liquors | 11,195,452.74 | |
Yibin Wucai Packaging Co., Ltd. | Packing materials | 8,650,026.20 | |
Sichuan Ansage Supply Chain Management Co., Ltd. | Raw materials | 8,114,838.19 | |
Sinopharm Group Yibin Medicine Co., Ltd. | Medicine, etc. | 7,972,120.82 | |
Sichuan Putian Packaging Co., Ltd. | Slices, paper, etc. | 7,961,394.53 | 11,196,877.60 |
Sichuan Wuliangye Health Wine Marketing Co., Ltd. | Raw materials | 7,885,162.30 | |
Sichuan Haida Rubber Group Co., Ltd. | Raw materials | 7,883,320.00 | |
Chengdu Huayu Glass Manufacturing Co., | Raw materials | 4,143,258.12 | 21,183,258.71 |
Ltd. | |||
Sichuan Huansheng Pharmacy Co., Ltd. | Medicine | 3,235,716.63 | 1,437,983.40 |
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | Packaging materials, etc. | 3,177,152.17 | |
Yibin Ansage Auto Service Co., Ltd. | Gasoline | 2,300,000.18 | 1,507,849.01 |
Yibin Wuliangye Group I&E Co., Ltd. | Liquors | 2,217,564.96 | 1,478,570.01 |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Raw materials, etc. | 2,191,204.82 | |
Sichuan Yibin Push Building Materials Co., Ltd. | Raw materials, etc. | 1,511,362.08 | 650,635.5 |
Sichuan Shuzhan New Materials Co., Ltd. | Raw materials, etc. | 291,094.03 | 1,478,897.85 |
Yibin Shengdi Trade Co. Ltd. | Labor protection appliances, etc. | 14,620.67 | 16,696,955.69 |
Yibin Shengdi Trade Co. Ltd. | Packing materials | 8,800.00 | 174,572,272.41 |
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. | Liquors | 30,479,352.83 | |
Sub-total of other fragmentary related procurement | 3,138,951.40 | 1,912,059.98 | |
Total related procurement | 1,484,815,820.93 | 1,163,649,269.28 | |
Sichuan Anji Logistic Group Co., Ltd. | Freight and miscellaneous expenses, external labor cost, etc. | 534,305,032.99 | 536,072,363.11 |
Yibin Jiamei Intelligent Packaging Co., Ltd. | Outsourced processing fee | 30,712,887.50 | |
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Freight and miscellaneous expenses, company bus expenses, etc. | 21,407,805.87 | 17,028,929.67 |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Maintenance cost, etc. | 7,408,091.53 | 8,903,084.34 |
Yibin Global Energy Conservation Service Co., Ltd. | Flue gas treatment, etc. | 3,441,567.70 | 2,973,218.40 |
Yibin Ansage Auto Service Co., Ltd. | Freight and miscellaneous expenses, maintenance, vehicle cost, etc. | 1,693,227.24 | 3,438,785.56 |
Sichuan Shuzhan New Materials Co., Ltd. | Printing and production cost | 838,938.06 | 1,180,111.07 |
Sichuan Ansage Supply Chain Management Co., Ltd. | Freight and miscellaneous expenses | 814,067.82 | 1,291,498.45 |
Yibin Push Linko Technology Co., Ltd. | Maintenance cost | 492,248.77 | 1,607,648.75 |
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. | Publicity expense, etc. | 5,406,017.06 | |
Sub-total of other fragmentary services received | 1,873,704.46 | 1,835,708.73 | |
Total services received | 602,987,571.94 | 579,737,365.14 |
Related transaction of purchases of goods and acceptance of services:
Note 1: On January 1, 2018, the Company and Yibin Shengdi Trade Co. Ltd. entered into the LaborProtection Appliances and Packing Bags Supply Agreement, according to which the latter shall supplyproducts to the Company based on its needs for production and operation. The Company conductsacceptance for all agreement products which actually delivered according to the Agreement; the actualquantity received of the packing bags provided by Shengdi Company is the qualified quantity after theproduction and use by the Company, and the actual quantity received of the labor protection appliancesis the quantity accepted by the Company. The settlement shall be based on the actual quantity receivedas determined by the Company. Price of the products supplied under the Agreement strictly complieswith the market price and shall not be higher than the price charged by Shengdi Company for providingthe products to any third party. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 2: On January 1, 2018, the Company and Yibin Jinlong Trade Development Corporationentered into the Raw and Auxiliary Materials Supply Agreement, according to which the latter shallsupply raw and auxiliary materials to the Company at any time based on its needs for production andoperation. The Company warehouses and conducts acceptance for all agreement products which
actually delivered according to the Agreement; the actual quantity received is the qualified quantity afterthe production and use. The products are paid at the market price. The Agreement is valid from January1, 2018 to December 31, 2020.Note 3: The Company and Sichuan Anji Logistic Group Co., Ltd. entered into the Logistics ServiceAgreement, according to which the Company outsources the logistics business during the productionand operation to Anji Logistic Group. The scope of logistics business includes loading and unloading,handling, storage, and transportation of raw and auxiliary materials during the procurement logistics,production logistics and sales logistics. Anji Group shall provide professional logistics service to ensurethe safety and timeliness of the products. The Agreement is valid from January 1, 2018 to December 31,2020.
Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Group Co., Ltd. entered into theAnti-counterfeit Labels Supply Agreement, according to which the latter shall supply anti-counterfeitlabels to the Company at any time based on its needs for production and operation. The Companywarehouses and conducts acceptance for all agreement products which actually delivered according tothe Agreement; the actual quantity received is the quantity that passes the acceptance inspection. Theagreement products are paid at market price based on the actual qualified quantity of the packingworkshop of the Company. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 5: On January 1, 2018, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into theMold Supply Agreement, according to which the latter shall supply molds to the Company at any timebased on its needs for production and operation. The Company warehouses and conducts acceptancefor all agreement products which actually delivered according to the Agreement; the actual quantityreceived is the qualified quantity after the production and use. The products are paid at the market price.The Agreement is valid from January 1, 2018 to December 31, 2020.Note 6: On January 1, 2018, the Company and Sichuan Yibin Push Drive Co., Ltd. entered into theInjection Products Supply Agreement, according to which the latter shall supply products to theCompany at any time based on its needs for production and operation. The Company warehouses andconducts acceptance for all agreement products which actually delivered according to the Agreement;the actual quantity received is the qualified quantity after the production and use. The products are paidat the market price. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 7: On January 1, 2018, the Company and Sichuan Putian Packaging Co., Ltd. entered into theSupply Agreement of Container Bags, Boxes, Accessories, Raw and Auxiliary Materials, according towhich the latter shall supply container bags, boxes, accessories, raw and auxiliary materials to theCompany at any time based on its needs for production and operation. The Company warehouses andconducts acceptance for all agreement products which actually delivered according to the Agreement;the actual quantity received is the qualified quantity after the production and use by the Company. Theproducts are paid at the market price. The Agreement is valid from January 1, 2018 to December 31,2020.Note 8: The Company and Sichuan Yibin Global Group Tianwo Trade Co., Ltd. entered into theCooperation Agreement, according to which the latter shall supply base paper, raw materials for glass,labor protection appliances, auxiliary materials, and other materials to the Company based on its needsfor production and operation. Price of the products is determined by the market price through negotiationand confirmed by contract. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 9: On January 1, 2018, the Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd.entered into the Supply Agreement of Injection Products, Blister Products and Film Products, accordingto which the latter shall supply products to the Company at any time based on its needs for productionand operation. The Company warehouses and conducts acceptance for all agreement products whichactually delivered according to the Agreement; the actual quantity received is the qualified quantity afterthe production and use. The products are paid at the market price. The Agreement is valid from January1, 2018 to December 31, 2020.
Note 10: On August 6, 2019, the Company and Sichuan Sacred Mountain Molin Group Co., Ltd.entered into the Procurement Contract of Salesman Uniform for Wuliangye Exclusive Shop, according towhich the latter shall supply a batch of salesman uniforms for Wuliangye exclusive shops to theCompany. Settlement shall be based on the quantity actually delivered. The product price consists ofexpenses (tax inclusive) of the goods related to materials, manufacturing, packing, transportation,inspection, and acceptance incurred before delivery, and those of the maintenance services and spareparts during the warranty period and other relevant items.
Statement of sales of goods/provision of services
Unit: RMB Yuan
Related parties | Content of related transaction | Amount in current period | Amount in previous period |
Yibin Wuliangye Group I&E Co., Ltd. | Liquor products | 407,232,474.70 | 652,880,429.95 |
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | Liquor products | 213,211,849.44 | 565,230.53 |
Sichuan Putian Packaging Co., Ltd. | Bottle caps, slices, etc. | 153,174,504.82 | 191,905,219.10 |
Sichuan Yibin Global Group Co., Ltd. | Raw materials such as glass bottles | 130,352,494.03 | 28,853,048.01 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Glass bottles, paper products, etc. | 118,674,546.31 | 57,930,524.81 |
Sichuan Shengshan Hexu Import & Export Trading Co., Ltd. | Raw materials | 112,926,805.75 | |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Liquor products | 57,245,624.77 | |
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Slices, coiled materials, etc. | 42,967,678.11 | 51,564,215.88 |
Sichuan Nongwu E-commerce Co., Ltd. | Liquor products | 38,503,865.67 | |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Cartons, glass bottles, etc. | 37,630,157.13 | 14,907,215.21 |
Sichuan Yibin Push Auto Parts Co., Ltd. | Raw materials, etc. | 36,330,151.38 | 75,061,728.49 |
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Liquor products | 33,776,653.50 | 16,286,898.80 |
Sichuan Sacred Mountain Molin Group Co., Ltd. | Liquor products, etc. | 29,055,333.51 | |
Sichuan Yibin Push Building Materials Co., Ltd. | Slices, etc. | 26,499,939.82 | 15,991,958.85 |
Sichuan Wuliangye Health Wine Marketing Co., Ltd. | Liquor products | 23,826,649.58 | |
Sichuan Yibin Push Group Co., Ltd. | Plastic products | 22,824,155.97 | 57,559.00 |
Sichuan Yibin Push Drive Co., Ltd. | Slices, etc. | 21,130,299.93 | 22,399,640.97 |
Yibin Jinlong Trade Development Corporation | Liquor products | 15,970,781.04 | 7,870,256.50 |
Chengdu Global Special-Glass Manufacture Co., Ltd. | Glass bottle | 14,478,940.60 | |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Industrial paperboard | 11,489,368.64 | |
Sichuan Yibin Licai Group Co., Ltd. | Liquor products | 11,197,235.86 | |
Sichuan Sacred Mountain Hechang Clothing Co., Ltd. | Plastic products | 9,824,941.11 | 18,004,711.29 |
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | Raw materials | 7,883,585.47 | |
Sichuan Linhu Tea Co., Ltd. | Sundries, etc. | 6,469,645.74 | 477,876.11 |
Sinopharm Group Yibin Medicine Co., Ltd. | Liquor products | 5,559,104.88 | 526,341.62 |
Sichuan Shuzhan New Materials Co., Ltd. | Hang tags, labels, etc. | 5,525,892.62 | 7,907,456.49 |
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Packing materials | 4,461,608.28 | 3,713,386.76 |
Yibin Jinlong Trade Development Corporation | Mixed grains, DDGS | 3,807,071.70 | 4,004,260.39 |
Sichuan Yibin Global Group Tianwo Trade Co., | Industrial sodium | 3,319,168.46 | 37,516,574.09 |
Ltd. | carbonate | ||
Yibin Jiamei Intelligent Packaging Co., Ltd. | Paper products, etc. | 2,131,541.87 | |
Sichuan Push Acetati Company Limited | Raw materials, etc. | 1,466,710.69 | 125,985.74 |
Sichuan Tyre Rubber (Group) Co., Ltd. | Liquor products | 1,465,486.72 | 7,964.60 |
Wuming Tea Industry Holding Co., Ltd. | Liquor products | 1,350,529.39 | 632,792.69 |
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. | Liquor products | 1,081,555.75 | 27,523,335.87 |
Sichuan Nongwu E-commerce Co., Ltd. | Sundries | 1,020,744.06 | |
Sichuan Linhu Tea Co., Ltd. | Liquor products | 725,872.57 | 1,811,362.84 |
Push Information & Automation (Chengdu) Co., Ltd. | Bottle caps, glass bottles, etc. | 33,466.05 | 1,073,093.87 |
Yibin Jinlong Trade Development Corporation | Lactic acid | 47,502,991.20 | |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Slices | 28,286,548.75 | |
Yibin Huanyu Trade Co. Ltd. | Liquor products | 6,626,332.05 | |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Coal | 5,387,532.19 | |
Yibin Leitian Agricultural Development Co., Ltd. | Liquor products | 1,015,752.21 | |
Other fragmentary sales | 10,409,576.82 | 8,628,662.43 | |
Total | 1,625,036,012.74 | 1,337,046,887.29 |
Related transaction of sales of goods and provision of services:
Note 1: On January 1, 2018, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered intothe Export Commodities Purchase and Sales Agreement. The price of the agreement products suppliedby the Company to I&E Company is floating. The supply price (tax exclusive) is 70%-73% of the averageselling price per bottle of I&E Company in the previous month. According to the Agreement, I&ECompany shall give the Company prior written notice of specific requirements for specification, model,packaging, anti-counterfeit label, quantity, and delivery term of the Wuliangye series products accordingto the demands of the international market, and prepay 60% of the purchase price to the Company. TheCompany shall organize the production and supply Wuliangye series liquor products in a timely manneraccording to the export demands of I&E Company. The Agreement is valid from January 1, 2018 toDecember 31, 2020.Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Ecological Breweryand Marketing Co., Ltd. entered into the Base Liquor Purchase and Sales Agreement, according towhich the latter shall give the Company prior written notice of the specific requirements for the quantityand date of delivery of the base liquor according to the market demands. The Company shall supply theagreement products according to the needs for production and operation of the Ecological BreweryCompany. The price for supply of the agreement products shall strictly comply with the market price andpaid before delivery. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 3: The Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd. entered into theFramework Contract, according to which the latter shall procure raw materials, packaging products,spare parts, and other production materials from the Company based on its needs for production andoperation. The product price consists of the factory price of materials, packing expenses, and varioustesting fees of the material, profits, taxes and other expenses. Refer to terms of payment as specified inspecific sales contract for settlement of the purchase price. The Agreement is valid from January 1, 2018to December 31, 2020.Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Building Materials Co., Ltd.entered into the Framework Contract, according to which the latter shall procure raw materials,packaging products, spare parts, and other production materials from the Company. The product priceconsists of the factory price of materials, packing expenses, and various testing fees of the material,profits, taxes and other expenses. Refer to terms of payment as specified in specific sales contract for
settlement of the purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 5: On January 1, 2018, the Company and Yibin Jinlong Trade Development Corporationentered into the Commodity Purchase and Sales Agreement, according to which the latter shallcommunicate with the Company about consumption of the agreement products in a timely manner, andthe Company shall ensure timely supply of the agreement products to satisfy the needs of Jinlong TradeCompany. Price for supply of the agreement products shall be based on the market price. The Companyshall give a one-week written notice of price adjustment in case of adjustment of the price of theagreement product; Payment for supply of the agreement product which is actually occurred shall besettled regularly. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 6: On January 1, 2018, the Company and Sichuan Yibin Push Drive Co., Ltd. entered into theFramework Contract, according to which the latter shall procure raw materials, packaging products,spare parts, and other production materials from the Company. The product price consists of the factoryprice of materials, packing expenses, and various testing fees of the material, profits, taxes and otherexpenses. Refer to terms of payment as specified in specific sales contract for settlement of thepurchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 7: On January 23, 2018, the Company and Sichuan Sacred Mountain Hechang Clothing Co.,Ltd. entered into the Framework Contract, according to which the latter shall procure raw materials,packaging products, spare parts, and other production materials from the Company. The product priceconsists of the factory price of materials, packing expenses, and various testing fees of the material,profits, taxes and other expenses. Refer to terms of payment as specified in specific sales contract forsettlement of the purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 8: The Company and Chengdu Huayu Glass Manufacturing Co., Ltd. entered into theCooperation Agreement, according to which the latter shall procure cartons, paper products, and glassbottles from the Company and the Company shall make the procurement plan according to thespecification and quantity of the ordered products. The Company shall make calculation and quotation toHuayu Company based on the planned type and carry out production and supply according to the planafter the price is determined. The quantity shall be that of the products which are actually used andwarehoused after the arrival and acceptance. The Agreement is valid from January 1, 2018 to December31, 2020.Note 9: On January 22, 2018, the Company and Sichuan Putian Packaging Co., Ltd. entered intothe Framework Contract, according to which the latter shall procure raw materials, packaging productsand other materials from the Company. The product price consists of the factory price of materials,packing expenses, and various testing fees of the material, profits, taxes and other expenses. Refer toterms of payment as specified in specific sales contract for settlement of the purchase price. TheAgreement is valid from January 1, 2018 to December 31, 2020.
(2) Related-party lease
The Company as the lessor:
Unit: RMB Yuan
Name of lessee | Type of leased assets | Lease revenue recognized in current period | Lease revenue recognized in previous period |
Sichuan Anji Logistic Group Co., Ltd. | Buildings | 838,157.18 | 169,268.48 |
Sichuan Yibin Push Building Materials Co., Ltd. | Warehouse | 663,267.96 | 663,267.96 |
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Equipment | 501,015.52 | 814,150.22 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Buildings | 384,171.44 | 375,599.99 |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Buildings | 226,285.72 | 226,285.72 |
Sichuan Putian Packaging Co., Ltd. | Houses and warehouses | 125,044.55 | 303,326.53 |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Buildings | 5,528.57 |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Buildings | 57,142.84 | 57,142.86 |
Sichuan Putian Packaging Co., Ltd. | Equipment | 52,907.76 | |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Buildings | 28,436.65 |
The Company as the lessee:
Unit: RMB Yuan
Name of lessor | Type of leased assets | Rents recognized in current period | Rents recognized in previous period |
Sichuan Yibin Wuliangye Group Co., Ltd. | Land (Note 1) | 296,558,180.00 | 296,558,180.00 |
Sichuan Anji Logistic Group Co., Ltd. | Warehouse | 44,837,768.19 | 39,453,231.04 |
Sichuan Yibin Wuliangye Group Co., Ltd. | Operation and management areas (Note 2) | 29,605,028.57 | 29,822,513.62 |
Sichuan Yibin Licai Group Co., Ltd. | Buildings (Note 3) | 15,512,748.60 | 15,512,748.60 |
Sichuan Yibin Push Group Co., Ltd. | Operation and management areas (Note 4) | 6,715,238.10 | 6,715,238.10 |
Yibin Push Assets Management Co., Ltd. | Warehouse | 5,606,413.94 | 2,941,500.95 |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Warehouse | 4,440,887.72 | 3,349,628.67 |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Equipment | 4,225,181.48 | 4,289,229.22 |
Sichuan Yibin Global Group Co., Ltd. | Warehouse | 2,989,811.34 | 2,989,811.34 |
Sichuan Yibin Push Group Co., Ltd. | Warehouse | 2,486,852.84 | 1,865,139.63 |
Sichuan Andaxin Logistic Co., Ltd. | Warehouse | 2,530,894.04 | 2,867,086.53 |
Yibin Push Linko Technology Co., Ltd. | Warehouses and houses | 2,325,929.91 | 2,345,358.51 |
Yibin Push Linko Technology Co., Ltd. | Equipment | 1,459,428.57 | 768,000.00 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Warehouse | 1,228,525.72 | 1,228,525.72 |
Sichuan Yibin Push Auto Parts Co., Ltd. | Equipment | 130,810.30 | |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Equipment | 43,068.00 | 1,534,759.71 |
Sichuan Ansage Supply Chain Management Co., Ltd. | Warehouse | 28,301.88 | 44,719.64 |
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Warehouse | 111,566.01 | |
Sichuan Yibin Weilisi Float Glass Manufacturing Co., Ltd. | Equipment | 14,455.75 |
Note on related-party lease:
Note 1: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto three Land Lease Agreements, according to which Wuliangye Group leases three plots of landowned by it to the Company. The leased areas are 2,315,349.08, 724,958.17 and 666,670.00 squaremeters, with the annual rents of RMB 185.2279 million, RMB 57.9967 million and RMB 53.3336 million,respectively, totaling RMB 296.5582 million. The lease term is from January 1, 2018 to December 31,2020.Land price criterion:
The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. isformulated with reference to the land lease criterion of previous years and in accordance with the Replyof Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of theLand Lease Criterion (YGTH (2010) No. 53, March 12, 2010), which stating that “the rent of RMB 50-110per square meter per year for the industrial land in this area is consistent with prevailing land price ofYibin”. The Company and Wuliangye Group determine the rent of leased land as RMB 80 per square
meter per year through mutual agreement.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto the Operation and Management Areas Lease Agreement, according to which Wuliangye Groupleases part of the operation and management areas (including the office building, multi-function pavilion,etc.) owned by it to the Company. The leased area is 27,121.32 square meters, with the annual rent ofRMB 29.256 million. The lease term is from January 1, 2018 to December 31, 2020.Note 3: On December 29, 2017, the Company and Sichuan Yibin Licai Group Co., Ltd. entered intothe Factory Building Lease Contract, according to which Licai Group leases the high-end productworkshop building (1F-5F) at its headquarter to the Company. The leased area is 20,557.30 squaremeters, with the annual rent (tax inclusive) of RMB 16,288,386.00. The Agreement is valid from January1, 2018 to December 31, 2020.Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Group Co., Ltd. entered into theOperation and Management Areas Lease Agreement, according to which Push Group leases its officebuilding located at No. 150, West Minjiang Road, Yibin and all office equipment in the office building tothe Company. The leased area is 6,536.70 square meters, with the annual rent of RMB 7.051 million.The lease term is from January 1, 2018 to December 31, 2020.
(3) Guarantee with related parties
The Company had no guarantee with related parties during the reporting period.
(4) Loans and borrowings with related parties
The Company had no loans and borrowings with related parties during the reporting period.
(5) Assets transfer and debt restructuring with related parties
There is no assets transfer and debt restructuring with related parties during the reporting period.
(6) Key management personnel remuneration
Unit: RMB '0,000
Item | Amount in current period | Amount in previous period |
Key management personnel remuneration | 1,129.65 | 744.12 |
(7) Other related transactions
① Procurement of equipment, etc.
Related parties | Content of related transaction | Amount in current period | Amount in previous period |
Sichuan Yibin Wuliangye Group Co., Ltd. | Trademark and logo royalties (Note 1) | 637,338,648.84 | 577,396,281.55 |
Sichuan Yibin Wuliangye Group Co., Ltd. | Comprehensive service fee (Note 2) | 91,977,989.83 | 67,434,207.22 |
Yibin Jichi Automobile Sales Service Co., Ltd. | Purchase of transportation equipment | 33,458,753.81 | |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Procurement of equipment | 21,837,927.09 | 15,872,532.05 |
Push Information & Automation (Chengdu) Co., Ltd. | Procurement of equipment | 7,404,778.67 | 474,641.40 |
Yibin Jitai Automobile Sales & Service Co., Ltd. | Purchase of transportation equipment | 2,629,421.85 | |
Sichuan Zhongke Better Technology Co., Ltd. | Procurement of equipment | 30,255.00 |
Sichuan Baiweiyuan Food Co., Ltd. | Purchase of transportation equipment | 12,319.16 | |
Sichuan Yibin Wuliangye Group Pengcheng Electronics Instrument Co., Ltd. | Procurement of equipment | 5,970.00 | |
Yibin Global Energy Conservation Service Co., Ltd. | No.4 Glass Kiln Gas Treatment Project | 3,873,909.03 | |
Yibin Push Linko Technology Co., Ltd. | Purchase of equipment | 764,000.00 |
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Procurement of equipment | 599,660.55 | |
Yibin Ansage Auto Service Co., Ltd. | Purchase of transportation equipment | 154,708.16 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Procurement of equipment | 70,580.50 | |
Yibin Push Assets Management Co., Ltd. | Procurement of equipment | 255,770.63 | |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Selling of equipment | 2,767.20 |
Note 1: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto the Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses tothe Company the nonexclusive right of use of 1 factory emblem, the nonexclusive right of use of 8trademarks, exclusive right of use of 130 trademarks, and unpaid exclusive right of use of 4 trademarks.The royalty shall be paid by the following means: ① The royalty of “factory emblem” shall be paid at
1.27% of the annual sales revenue from all liquor products using the “factory emblem”; ② No royaltyshall be paid for trademark of liquor products of which the annual sales revenue is less than 50 tons, androyalty of trademark of liquor products sold by 50 tons (inclusive) or more shall be calculated by the totalsales volume. Royalties of trademark shall be paid by the following means: Trademark royalty ofproducts with selling price at RMB 30,000 per ton and above shall be RMB 1,500 per ton; and that ofproducts with selling price at RMB 12,000 per ton and above but below RMB 30,000 per ton shall beRMB 1,400 per ton; that of products with selling price below RMB 12,000 shall be RMB 1,300 per ton.The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto the Comprehensive Service Agreement, according to which the latter shall provide the agreedservice to the Company by the quantity agreed by both parties from time to time. Both parties measurethe services at the actual cost, and the rate of increase of the unit cost price compared with the previousyear shall be no more than the inflation index of previous year plus 5% or the growth factor of consumerprice index of Sichuan Province, whichever is lower. The increase shall not be subject to the above limitwhen the service scope is expanded, and the service shall still be measured at the actual cost ofprovision of the service. The Agreement is valid from January 1, 2018 to December 31, 2020.
② Association relationship with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
The Company signed the Financial Service Agreement and the Supplemental Agreement to theFinancial Service Agreement with the Finance Company on April 12, 2018 and April 20, 2020,respectively. The main contents are loan and deposit services. Daily balance of deposits of theCompany with the Finance Company in 2020 was no more than RMB 32.9 billion, and the daily balanceof loan in 2020 was no more than RMB 5 billion.
The total deposits of the Company with the Finance Company was RMB 28,600,538,878.29 at theend of the period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to theCompany, assuring that relevant deposits and loans of the Company with the Finance Company aresafe; the current interest revenue is RMB 787,783,429.35 in total; the Company discounted bankacceptance bills of RMB 2,797,130,622.00 to the Finance Company and paid discount interest of RMB37,427,621.94 during the period.
6. Receivables from and payables to related parties
(1) Receivables
Unit: RMB Yuan
Project name | Related parties | Ending balance | Beginning balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Accounts receivable | Sichuan Putian Packaging Co., Ltd. | 7,403,902.45 | 31,324,539.34 | ||
Accounts receivable | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 1,192,800.00 | 507,527.52 | ||
Accounts receivable | Sichuan Nongwu E-commerce Co., Ltd. | 683,951.30 | |||
Accounts receivable | Yibin Paper Industry Co., Ltd. | 396,398.81 | |||
Accounts receivable | Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | 319,302.00 | 319,302.00 | ||
Accounts | Chengdu Huayu Glass Manufacturing Co., | 249,223.49 | 3,779,810.70 |
receivable | Ltd. | ||||
Accounts receivable | Sichuan Yibin Push Group Co., Ltd. | 244,352.00 | |||
Accounts receivable | Yibin Chuanhong Tea Group Co., Ltd. | 177,812.00 | |||
Accounts receivable | Sichuan Andaxin Logistic Co., Ltd. | 74,136.00 | |||
Accounts receivable | Sichuan Yibin Push Auto Parts Co., Ltd. | 56,300.73 | |||
Accounts receivable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 18,069.72 | |||
Accounts receivable | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | 9,512,479.81 | |||
Accounts receivable | Chengdu PUTH Medical Plastics Packaging Co., Ltd. | 8,420,650.88 | |||
Accounts receivable | Push Information & Automation (Chengdu) Co., Ltd. | 709,868.22 | |||
Prepayment | Yibin Push Linko Technology Co., Ltd. | 19,944,767.12 | |||
Prepayment | Wuming Tea Industry Holding Co., Ltd. | 6,160,000.00 | |||
Prepayment | Sichuan Sacred Mountain Molin Group Co., Ltd. | 4,006,415.93 | 8,283,185.84 | ||
Prepayment | Chengdu PUTH Medical Plastics Packaging Co., Ltd. | 1,327,100.00 | |||
Prepayment | Sichuan Anji Logistic Group Co., Ltd. | 827,429.00 | 997,853.00 | ||
Prepayment | Yibin Ansage Auto Service Co., Ltd. | 273,193.61 | 9,300.18 | ||
Prepayment | Yibin Ansage Auto Service Co., Ltd. Chhengdu Branch | 200,000.00 | |||
Prepayment | Push Information & Automation (Chengdu) Co., Ltd. | 12,810.00 | |||
Prepayment | Sichuan Yibin Push Drive Co., Ltd. | 1,884,151.79 | |||
Prepayment | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 314,700.00 | |||
Cash and cash equivalents | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 476,552,144.13 | 531,981,058.33 | ||
Other receivables | Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | 460,000.00 | 480,000.00 | ||
Other receivables | Sichuan Putian Packaging Co., Ltd. | 288,252.45 | 250,000.00 | ||
Other receivables | Chengdu Huayu Glass Manufacturing Co., Ltd. | 200,000.00 | 200,000.00 | ||
Other receivables | Yibin Wuliangye Ecological Brewing Co., Ltd. | 122,727.27 | 122,727.27 | ||
Other receivables | Sichuan Anji Logistic Group Co., Ltd. | 100,000.00 | 450,000.00 | ||
Other receivables | Sichuan Linhu Tea Co., Ltd. | 80,000.00 | 50,000.00 | ||
Other receivables | Sichuan Shuzhan New Materials Co., Ltd. | 32,000.00 | 70,000.00 | ||
Other receivables | Sichuan Ansage Supply Chain Management Co., Ltd. | 10,000.00 | |||
Other receivables | Sichuan Yibin Push Drive Co., Ltd. | 7,016.11 |
Remarks: The amount related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. in this table represents the
interest on time deposits accrued on an accrual basis, and the ending balance is presented in the cash and cashequivalents account.
(2) Payables
Unit: RMB Yuan
Project name | Related parties | Ending book balance | Beginning book balance |
Accounts payable | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 3,171,085.68 | 30,066.98 |
Accounts payable | Sichuan Yibin Wuliangye Group Co., Ltd. | 7,634,607.30 | |
Accounts payable | Sichuan Yibin Push Drive Co., Ltd. | 1,253,105.19 | |
Accounts payable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 778,630.05 | |
Accounts payable | Yibin Global Energy Conservation Service Co., Ltd. | 649,772.10 | |
Accounts payable | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | 354,013.71 | 414,303.16 |
Accounts payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 243,745.46 | 235,712.98 |
Accounts payable | Chengdu Ningjiang Machine Tool Sales Co., Ltd. | 180,000.00 | 180,000.00 |
Accounts payable | Sichuan Ansage Supply Chain Management Co., Ltd. | 116,615.11 | 334,704.03 |
Accounts payable | Sichuan Shuzhan New Materials Co., Ltd. | 110,000.00 | |
Accounts payable | Sichuan Putian Packaging Co., Ltd. | 37,096.80 | 111,293.30 |
Accounts payable | Sichuan Yibin Push Group Co., Ltd. | 14,475,469.14 | |
Accounts payable | Chengdu PUTH Medical Plastics Packaging Co., Ltd. | 1,170,859.61 | |
Accounts payable | Sichuan Anji Logistic Group Co., Ltd. | 292,692.00 | |
Accounts payable | Sichuan Andaxin Logistic Co., Ltd. | 182,250.00 | |
Accounts payable | Push Information & Automation (Chengdu) Co., Ltd. | 55,058.40 | |
Accounts received in advance | Sichuan Yibin Push Building Materials Co., Ltd. | 4,942,728.12 | |
Accounts received in advance | Yibin Wuliangye Ecological Brewing Co., Ltd. | 736,363.64 | |
Accounts received in advance | Yibin Development Holding Group Co., Ltd. | 439,000.00 | |
Accounts received in advance | Sichuan Linhu Tea Co., Ltd. | 375,600.00 | |
Accounts received in advance | Wuming Tea Industry Holding Co., Ltd. | 267,600.00 | |
Accounts received in advance | Yibin Anji Logistic Group Shenzhou Transportation Co., Ltd. | 208,248.14 | |
Accounts | Sichuan Yibin Push Group Co., Ltd. | 96,012.00 |
received in advance | |||
Accounts received in advance | Yibin Wuliangye Group I&E Co., Ltd. | 83,711.24 | |
Accounts received in advance | Sichuan Putian Packaging Co., Ltd. | 82,640.00 | |
Accounts received in advance | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | 66,440.00 | |
Accounts received in advance | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 6,000.00 | |
Contract liability | Sichuan Nongwu E-commerce Co., Ltd. | 26,075,394.69 | |
Contract liability | Sichuan Push Acetati Company Limited | 17,650,236.39 | |
Contract liability | Sinopharm Group Yibin Medicine Co., Ltd. | 9,255,292.04 | |
Contract liability | Sichuan Yibin Push Group Co., Ltd. | 7,484,749.18 | |
Contract liability | Sichuan Shuzhan New Materials Co., Ltd. | 1,427,964.60 | |
Contract liability | Sichuan Tyre Rubber (Group) Co., Ltd. | 958,672.57 | |
Contract liability | Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. | 788,720.35 | |
Contract liability | Yibin Wuliangye Ecological Brewing Co., Ltd. | 675,562.97 | |
Contract liability | Sichuan Sacred Mountain Molin Group Co., Ltd. | 663,844.25 | |
Contract liability | Yibin Development Holding Group Co., Ltd. | 388,495.58 | |
Contract liability | Sichuan Putian Packaging Co., Ltd. | 271,880.99 | |
Contract liability | Push Information & Automation (Chengdu) Co., Ltd. | 227,101.77 | |
Contract liability | Yibin Anji Logistic Group Shenzhou Transportation Co., Ltd. | 184,290.39 | |
Contract liability | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | 58,796.46 | |
Contract liability | Yibin Wuliangye Group I&E Co., Ltd. | 34,487.42 | |
Contract liability | Sichuan Anji Logistic Group Co., Ltd. | 25,909.85 | |
Notes payable | Yibin Jiamei Intelligent Packaging Co., Ltd. | 7,500,000.00 | |
Notes payable | Sichuan Yibin Licai Group Co., Ltd. | 3,900,000.00 | |
Notes payable | Wuming Tea Industry Holding Co., Ltd. | 909,196.00 | 320,000.00 |
Notes payable | Sichuan Anji Logistic Group Co., Ltd. | 447,351.78 | |
Notes payable | Sichuan Ansage Supply Chain Management Co., Ltd. | 280,000.00 | |
Dividend payable | Sichuan Yibin Wuliangye Group Co., Ltd. | 37,918,093.23 | |
Other | Sichuan Yibin Wuliangye Group Co., Ltd. | 136,248,128.58 |
payables | |||
Other payables | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 2,638,791.93 | 2,920,492.15 |
Other payables | Sichuan Putian Packaging Co., Ltd. | 1,956,478.00 | 1,976,478.00 |
Other payables | Push Information & Automation (Chengdu) Co., Ltd. | 1,115,990.00 | |
Other payables | Sichuan Anji Logistic Group Co., Ltd. | 430,000.00 | 673,087.45 |
Other payables | Yibin Push Assets Management Co., Ltd. | 353,516.00 | |
Other payables | Yibin Push Linko Technology Co., Ltd. | 342,271.35 | 528,426.44 |
Other payables | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | 137,790.43 | 137,790.43 |
Other payables | Sinopharm Group Yibin Medicine Co., Ltd. | 102,200.00 | |
Other payables | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 70,000.00 | 70,000.00 |
Other payables | Sichuan Yibin Push Building Materials Co., Ltd. | 50,000.00 | 55,000.00 |
Other payables | Yibin Development Holding Group Co., Ltd. | 50,000.00 | 50,000.00 |
Other payables | Sichuan Linhu Tea Co., Ltd. | 50,000.00 | 50,000.00 |
Other payables | Yibin Jiamei Intelligent Packaging Co., Ltd. | 50,000.00 | |
Other payables | Yibin Ansage International Logistic Co., Ltd. | 681,184.30 | 36,586.85 |
Other payables | Sichuan Sacred Mountain Molin Group Co., Ltd. | 9,156.80 | 16,610.00 |
Other payables | Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | 5,040.84 | 110,569.94 |
Other payables | Yibin Shengdi Trade Co. Ltd. | 5,000.00 | 5,000.00 |
Other payables | Sichuan Yibin Push Group Co., Ltd. | 4,794.00 | |
Other payables | Sichuan Shuzhan New Materials Co., Ltd. | 3,000.00 | 3,000.00 |
Other payables | Sichuan Ansage Supply Chain Management Co., Ltd. | 2,036.28 | 2,036.28 |
Other payables | Chengdu PUTH Medical Plastics Packaging Co., Ltd. | 357,761.64 | |
Other payables | Yibin Ansage Auto Service Co., Ltd. | 25,000.00 | |
Other payables | Chengdu Sacred Mountain Clothing Company | 13,421.80 | |
Other payables | Chengdu Ningjiang Machine Tool Sales Co., Ltd. | 10,000.00 |
XII. Commitments and contingencies
1. Significant commitments
The Company had no significant commitments which need to be disclosed during the reportingperiod.
2. Contingencies
The Company had no significant contingencies which need to be disclosed during the reportingperiod.XIII. Post-balance sheet events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
2. Profit distribution
As resolved by the 87th meeting of the 5th board of directors of the Company held on April 25, 2021,the profit distribution plan of 2020 is: RMB 25.8 (tax inclusive) in cash will be distributed for every 10shares, and no capital reserve will be transferred to capital stock. This plan shall be subject to theapproval of the general meeting.
3. Note on other post-balance sheet events
The Company has no other post-balance sheet events which need to be disclosed.
XIV. Other significant matters
1. Pension plan
The Company obtained the reply of the State-owned Assets Supervision and AdministrationCommission of Yibin Municipal Government on the Plan of Establishing the Corporate Pension Plan ofthe Company (YGZW [2018] No.221) on September 14, 2018, and had filed with the Department ofHuman Resources and Social Security of Sichuan Province on October 30, 2018.
Participants of the corporate pension plan of the Company include: (1) Employees who haveentered into labor contracts with the Company; (2) Employees who participate in the basic old-ageinsurance system for enterprise employees according to the law and perform the obligation of payment;and (3) Employees who are on duty and registered (excluding the probation period) will participate thecorporate pension plan on a voluntary basis.
Expenses for the corporate pension shall be shared by the Company and the employees.Contribution by an employee shall be 3% of the contribution base of such employee, and the monthlycontribution base of the employee shall be the average wage in the previous year. Total amount ofcontribution by the Company shall be 5% of the total annual wage paid by the Company, which shall bedistributed to individual accounts of the employees at 3% of the contribution base of the employees,while the remaining 2% shall be distributed to the corporate account as incentives for rewardingpersonnel who make significant contributions to the Company and for redistribution to employees of theCompany.
2. Segment information
The Company has no other businesses than liquor products which have significant impact on thebusiness performance. The Company has no segment information that needs to be disclosed sincerevenue of the Company is mainly generated within China and the assets are also located within China.
XV. Notes to important items of parent company's financial statements
1. Other receivables
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Interest receivable | 570,078,014.35 | |
Dividends receivable | 734,729,782.94 | 654,791,389.27 |
Other receivables | 6,331,395,342.48 | 8,901,837,449.41 |
Total | 7,066,125,125.42 | 10,126,706,853.03 |
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB Yuan
Item | Ending balance | Beginning balance |
Interest of fixed term deposit | 570,078,014.35 | |
Total | 570,078,014.35 |
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB Yuan
Item (or invested company) | Ending balance | Beginning balance |
Dividends receivable from subsidiaries | 734,729,782.94 | 654,791,389.27 |
Total | 734,729,782.94 | 654,791,389.27 |
2) Provision for bad debt
□ Applicable √ Not applicable
(3) Other receivables
1) Other receivables classified by nature
Unit: RMB Yuan
Nature of receivable | Ending book balance | Beginning book balance |
Current account | 6,327,394,369.95 | 8,892,421,547.89 |
Deposit | 5,000,000.00 | 10,000,000.00 |
Reserve fund | 4,862.65 | 76,201.29 |
Total | 6,332,399,232.60 | 8,902,497,749.18 |
2) Provision for bad debt
Unit: RMB Yuan
Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses over the coming 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
Balance on January 1, 2020 | 660,299.77 | 660,299.77 | ||
Balance on January 1, 2020 in current period | —— | —— | —— | —— |
Provisions in current period | 343,590.35 | 343,590.35 | ||
Balance on December 31, 2020 | 1,003,890.12 | 1,003,890.12 |
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB Yuan
Aging | Book balance |
Within 1 year (inclusive) | 4,443,114,353.83 |
1 to 2 years | 102,827,810.23 |
2 to 3 years | 126,542,645.67 |
More than 3 years | 1,659,914,422.87 |
3 to 4 years | 104,064,080.50 |
4 to 5 years | 97,947,190.67 |
More than 5 years | 1,457,903,151.70 |
Total | 6,332,399,232.60 |
3) Provision, recovery or reversal of bad debt provision in current periodBad debt provision in current period:
Unit: RMB Yuan
Category | Beginning balance | Amount of change in current year | Ending balance | |||
Provisions | Recovery or reversal | Write- off | Others | |||
Other receivables with bad debt provision by single item | ||||||
Other receivables with bad debt provision by credit risk combination | 660,299.77 | 343,590.35 | 1,003,890.12 | |||
Total | 660,299.77 | 343,590.35 | 1,003,890.12 |
4) Other receivables actually written off in current period
The parent company had no other receivables actually written off in current period.
5) Other receivables with top 5 ending balances by debtor
Unit: RMB Yuan
Unit name | Nature of receivables | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending balance of bad debt provision |
Sichuan Yibin Wuliangye Winery Co., Ltd. | Current account | 4,292,273,603.88 | Within 1 year | 67.78% | |
Yibin Jiangjiu Liquor Co., Ltd. | Current account | 1,690,768,940.40 | 1-5 years; More than 5 years | 26.70% | |
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. | Current account | 202,145,547.62 | 3-4 years; More than 5 years | 3.19% | |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Current account | 129,206,278.05 | More than 5 years | 2.04% | |
Wuliangye Dashijie (Beijing) Trade Co., Ltd. | Current account | 13,000,000.00 | 1-5 years; More than 5 years | 0.21% | |
Total | -- | 6,327,394,369.95 | -- | 99.92% |
2. Long-term equity investment
Unit: RMB Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment in subsidiaries | 11,476,902,138.11 | 11,476,902,138.11 | 9,597,846,998.20 | 9,597,846,998.20 | ||
Investment in associates and joint-ventures | 1,838,516,357.72 | 1,838,516,357.72 | 1,011,936,626.41 | 1,011,936,626.41 | ||
Total | 13,315,418,495.83 | 13,315,418,495.83 | 10,609,783,624.61 | 10,609,783,624.61 |
(1) Investment in subsidiaries
Unit: RMB Yuan
Invested company | Beginning balance (book value) | Increase/decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||
Additional investment | Reduced investment | Accrual of impairment provision | Others | ||||
Sichuan Yibin Wuliangye Winery Co., Ltd. | 3,375,729,567.45 | 1,694,055,139.91 | 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 Co., Ltd. | 18,870,000.00 | 18,870,000.00 | |||||
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 | |||||
Yibin Zhenwushan Liquor Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
Yibin Shiji Liquor Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
Yibin Cuipingshan Liquor Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
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 | |||||
Huaibin Wubin Consultation Service Co., Ltd. | 199,675,708.13 | 199,675,708.13 | |||||
Wuguchun Jiu Ye Co., Henan. China | 55,467,741.39 | 55,467,741.39 | |||||
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 |
Wuliang NongXiang Series Baijiu Yibin 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 | 9,597,846,998.20 | 1,879,055,139.91 | 11,476,902,138.11 |
(2) Investment in associates and joint-ventures
Unit: RMB Yuan
Investor | Beginning balance (Book value) | Increase/decrease in the current period | Ending balance (Book value) | Ending balance of provision for impairment | |||||||
Additional investment | Reduced investment | Profit and loss on investments recognized with equity method | Adjustment of other comprehensive income | Changes in other equities | Declaration of cash dividends or profits | Accrual of impairment provision | Others | ||||
I. joint ventures | |||||||||||
II. Associates | |||||||||||
Oriental Outlook Media Co., Ltd. | 17,078,139.66 | 4,043,275.64 | 21,121,415.30 | ||||||||
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 994,858,486.75 | 734,693,877.55 | 87,842,578.12 | 1,817,394,942.42 | |||||||
Sub-total | 1,011,936,626.41 | 734,693,877.55 | 91,885,853.76 | 1,838,516,357.72 | |||||||
Total | 1,011,936,626.41 | 734,693,877.55 | 91,885,853.76 | 1,838,516,357.72 |
3. Operating revenue and operating cost
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period | ||
Revenue | Cost | Revenue | Cost | |
Other businesses | 40,800.00 | 557,807.81 | ||
Total | 40,800.00 | 557,807.81 |
4. Investment income
Unit: RMB Yuan
Item | Amount in current period | Amount in previous period |
Long-term equity investment income accounted by cost method | 15,244,089,045.16 | 11,886,940,965.04 |
Long-term equity investment income accounted by equity method | 91,885,853.76 | 92,458,647.87 |
Total | 15,335,974,898.92 | 11,979,399,612.91 |
XVI. Supplementary information
1. Statement of current non-recurring profit and loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Item | Amount | Note |
Gain or loss on disposal of non-current assets | -5,064,647.92 | |
Governmental subsidy recorded in current profit/loss (except those government subsidies, which are closely related to the business of a company and enjoyed in accordance with a certain standard quota or quantity of the state) | 100,407,690.85 | |
Fund occupation fee collected from non-financial enterprises and recorded in current profit/loss | 2,602,571.31 | |
Other non-operating revenue and expenditure except for the aforementioned items | -141,782,777.02 | |
Less: Impact on income tax | -15,373,976.81 | |
Impact on minority equity | 11,671,148.66 | |
Total | -40,134,334.63 | -- |
Concerning the non-recurring profit/loss defined by Q&A Announcement No. 1 on InformationDisclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and theitems defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&AAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public -Non-recurring Profit/Loss, explain reasons.
□ Applicable √ Not applicable
2. Net return on equity and earnings per share
Profit of the reporting period | Weighted average return on equity | Earnings per share | |
Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
Net profit attributable to ordinary shareholders of the Company | 24.94% | 5.141 | 5.141 |
Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit and loss | 24.99% | 5.151 | 5.151 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in the financial report, under both
International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(3) Reasons for differences in accounting data under the Foreign Accounting Standards and
Chinese Accounting Standards, and where discrepancy adjustment is made to the data that
has been audited by an overseas audit institution, the name of the overseas institution shall
be indicated
Section XIII Reference File Directory
Relevant departments of the Company have prepared the following documents forshareholders’ reference:
I. Financial Statements containing signatures of the legal representative, the person in charge ofthe accounting work, and the person in charge of the accounting institution with seals.
II. Original Audit Report stamped by the accounting firm and signed and stamped by the CPAs.
III. Original copies of the documents and announcement of the Company published on ChinaSecurities Journal, Shanghai Securities News, and Securities Times during the reporting period.
IV. Annual Report of the Company.
Wuliangye Yibin Co., Ltd.
April 28, 2021