About the Report
This Report covers Kweichow Moutai Co., Ltd. and its a?liated organizations. To facilitate presentation, "Kweichow Moutai Co., Ltd." isreferred to as "Kweichow Moutai", the "Company", "we" and "us" , and our controlling shareholder, China Kweichow Moutai (Group) Co.,Ltd. is referred to as "Moutai Group" in this Report.
Reporting Period
Organization
This Report covers the period from January 1 to December 31, 2023, with part of the content tracing back to previous years asnecessary.
Compilatory BasisThis Report is prepared in accordance with the Guidelines of the Shanghai Stock Exchange for the Environmental Information Disclosureof Listed Companies, with reference to the GRI Sustainability Reporting Standards (GRI Standards) by the Global SustainabilityStandards Board (GSSB).
Publication IntervalThis Report is an annual report. Kweichow Moutai has issued Corporate Social Responsibility Reports for 12 consecutive years since2009 and issued Environmental, Social and Governance (ESG) Reports since 2021. This Report is the third ESG Report.
How to Obtain
This Report is published in both print and electronic formats. For more information on Kweichow Moutai's ESG performance or todownload the electronic version of this Report, please visit the following websites.O?cial website of Kweichow Moutai: https://www.moutai.com.cn/O?cial website of Shanghai Stock Exchange: http://www.sse.com.cn/
StatementAll nancial data herein are derived from the Annual Report 2023 of Kweichow Moutai Co., Ltd., and all other information and data arederived from our relevant statistics. The bookkeeping base currency of all monetary amounts involved is RMB. Certain amounts andpercentage gures herein have been rounded, and therefore, the totals shown in certain tables may not be the sum of the foregoinggures.
LanguageThis Report is available in both simplied Chinese and English. In case of any discrepancy in understanding the content, the simpliedChinese version shall prevail.
Message from the Chairman
The year 2023 has witnessed a magnificent chapter ofKweichow Moutai. It is a year for all of us at KweichowMoutai to work together and forge ahead with enterpriseand fortitude. Challenged by the intertwining of themacroeconomic recovery period and the Chinese Baijiuindustry adjustment period, weak consumption recovery, andintensified market competition, we have upheld Xi JinpingThought on Socialism with Chinese Characteristics for aNew Era and thoroughly implemented the guiding principlesfrom the 20th National Congress of the Communist Party ofChina (CPC or the "Party"). We have upgraded the "Five-Line" development strategy and practiced ESG concepts ina comprehensive and holistic manner. Moreover, we haveexplored new pathways and samples of ESG developmentto promote our sustainable development.Oriented by high quality, we have actively explorednew paths to green development. We have thoroughlyimplemented Xi Jinping Thought on Ecological Civilization,firmly adhered to the "Green Line" development strategy,and constructed a green development system for theharmonious coexistence between humanity and nature. Wehave implemented the "carbon peak and carbon neutrality"action and formulated a "carbon peak and carbon neutrality"work program. We have intensified our efforts in the Basefor Practicing the Concept That Clear Waters and GreenMountains Are Invaluable Assets, continued to implementthe "Five Projects" and "Five Actions," and gone all out topromote energy conservation and carbon reduction. Withan eye on water management, we have launched water-saving process retrofitting and innovation and enhancedwater conservation, drainage, water treatment, and waterreuse to increase water-saving benets and water e?ciency.We have advocated the circular economy, improved
resource efficiency, and worked together to build a resource-efficient benchmark enterprise. We have actively integratedinto the National Ecological Civilization Pilot Zone of Guizhouand continuously expanded the "green immovable property"in the Chishui River Basin. Focusing on six fronts, including"green culture," "green brewing," "green standards," and "greenproduction areas," we have promoted ecology as a priority,conservation, intensification, and low-carbon development tocreate a beautiful Moutai for the harmonious coexistence betweenhumanity and nature.
Built on high standards, we have been striving to create anew sample of ESG practice. We have launched an intensivemanagement improvement action benchmarked against the world'sbest, introduced the Performance Excellence Model and theEFQM model, and improved our modernized management with afocus on the management system, management mechanism, andsupervision mechanism. We have pushed forward the progressand standardized operation of the Board of Directors, optimizedour corporate governance structure, and fully implemented thepowers and functions of the Board of Directors. We have promotedthe construction of Smart Moutai 2.0 and continuously improvedour network security system to ensure data and privacy securityand enhance risk control capabilities. We have abode by businessethics, improved the Five-Sphere Integrated supervision system,strengthened our integrity culture, and consolidated the foundationof integrity and compliance. At the same time, we have integratedESG as an important value concept into our corporate strategy,established an ESG management organizational structure, fullyprogressed the ESG management system, and continued toimprove governance e?ectiveness.Centered on high quality, we have joined forces to create ahappier and better life. Committed to creating sustainable value,
we have built a coherent community with stakeholders, contributingto social development, well-being, and prosperity. Adhering toa people-oriented approach, we have worked together with ouremployees to create a happy Moutai that features harmoniousdevelopment, internal excellence, and external aesthetics, with afocus on employees' development, occupational health, rights, andinterests. We have also worked together with our partners to fosterindustrial "Mei" with enterprise, empower each other for commonprogress, and create a sustainable industrial chain ecosystem.We have worked tirelessly to establish the Moutai Public WelfareFoundation, focusing on the ve major areas (education, ecology,culture, science and technology, and health), coordinating moreresources to the public welfare cause so that the power ofgoodness benefits a wider range of areas and people and theworld becomes a better place.The year 2024 is the 75th anniversary of the founding of thePeople's Republic of China and also a critical year for the targetsand tasks of the 14th Five-Year Plan. We will adhere to high-quality development in our overall coordination and focus on thestrategic goals of "double world-leading, three breakthroughs, andfive leaps." We will firmly uphold the strategy of Mei and gatherthe power of Mei. In the value pursuit of "endless Mei, endlessme," we will work with stakeholders to intensify our ESG practices,forge ahead for a world-leading position and Mei, and createprosperity and a better future.
Chairman of Kweichow Moutai Co., Ltd.
04052023 Environmental, Social and Governance ReportKweichow Moutai Co., Ltd.
About Kweichow Moutai
Kweichow Moutai Co., Ltd. (stock code: 600519) was incorporated on November 1999 and was listed on the Shanghai Stock Exchangein 2001. Headquartered in Moutai Town along the stunning banks of the Chishui River in northern Guizhou Province, Moutai is mainlyengaged in the production and sales of Moutai Baijiu and Moutai series baijiu. The leading product, Kweichow Moutai Baijiu, is theoriginator and indisputable representative of Daqu jiangxiangxing baijiu in China. The product is a National Geographical IndicationProducts, product with EU-China Landmark Geographical Indication, organic food, and national intangible cultural heritage. Boastinglingering fragrance and a marketing network extending across China and to 64 countries and regions on ve continents, it is a Chinesebusiness card that brings the fragrance of baijiu to the world.In Kweichow Moutai, we pursue excellent quality at all times. We uphold the principle that quality is the soul of life, adhere to the FiveCraftsmanship quality concept, and inherit the scientic Gongfa of selected materials, excellent processes, and exquisite utensils in aninnovative manner. The essence of ve years' e?orts creates excellent quality integrating senses, perception, feelings, and inspirationsof Mei. We strive to build a rst-class brand. We are constantly making the brand with products with aesthetic feeling, optimizedservices, real public welfare, refined activity, and outstanding craftsmanship, continuously boosting the kinetic energy of the brand,highlighting the brand tension of China Moutai. We deeply explore the cultural connotation. We have perfected and formed a "nineseries" culture system, carried out a series of activities of 24 solar terms, and built a communication matrix of "mass response onlineand o?ine." We uphold fundamental principles and break new ground in telling stories of Chinese Baijiu culture, making the uniqueMoutai culture sparkling. We innovate and inherit traditional Gongfa. We insist on the brewing of Moutai that keeps in tune with thetimes and follow the traditional Gongfa of taking a year as one production cycle, making Daqu (saccharication starter for crude baijiu-making) during the Dragon Boat Festival, and proceeding sorghum rst added in jiang-avour baijiu production on the Double NinthFestival. We continue to enhance the original innovation ability and deeply analyze the scientic connotation of traditional techniques.We have concluded four Gongfa systems and established ve core technical systems to keep the vitality of traditional Gongfa forever.We continue to construct a beautiful ecology. We have thoroughly implemented the "ve special projects," built a life community of"mountains, water, forests, land, the river, and microorganisms," and launched the One Base and One Benchmark initiative. Throughthese e?orts, we fully maintain the ecosystem balance on which Moutai depends. We have even extended the maintenance of naturalecology to commercial ecology, guiding stakeholders to join hands to build a beautiful ecology enabled by the "three communities."We continue to take the "Five-Line" high-quality development path with Moutai Mei as its value connotation, living up to our commitmentto empowering a life of Mei with high-quality products and services. In 2023, Kweichow Moutai reported a total revenue of RMB 150.56billion, with a net prot attributable to the parent company of RMB 74.734 billion. The Company ranked rst in the "Top 50 Global MostValuable Spirits Brands of Brand Finance" for eight consecutive years, and ranked 3rd in the "Top 100 Most Valuable Chinese Brands"with a brand value of US$88.427 billion, making it the most valuable alcoholic beverage brand in China.
Company Prole
At Kweichow Moutai, our strategy is based on and aimed at continuously satisfying people's aspirations and pursuit of a better life.Taking Mei as the philosophy of corporate development and the guiding principle of strategy, we have formed a "Five-Line" high-qualitydevelopment strategy with Moutai Mei as the value connotation.
Corporate Culture
"Five-Line" High Quality Development Strategy
Modern industrial system of coordinated development
Risk prevention system of safety and controllability
Green development system of harmonious coexistence
Brand culture system of "unique but united"
Reform and innovation system of thriving vitality
Focusing on growth, centering on the main business of Chinese Baijiu, and driving the
synergistic development of the industrial chain to ensure stable development.
Focusing on safety, constructing a science-based and ordered system for work safety,
environmental management, and risk prevention and control.
Focusing on green, perfecting the quality system and building a green ecology and
circular economy system.
Focusing on culture, promoting the creative transformation of Moutai culture to build
the "three communities" with stakeholders.
Focusing on momentum, continuously promote sci-tech innovation, digital
transition, changes, and opening-up.
BlueLineGreen
Line
WhiteLine
Purple
Line
RedLine
Brewing a high-quality lifeFostering a world-class enterprise, Building a world-leadingbrandAromatic Product, Persistent Integrity, and HarmoniousCommunityDevoting to Moutai and winning glory for the motherlandHonor the principles, abide by the rules,stick to thecraftsmanship,store enough aged baijiu,and never sellfreshly brewed baijiu
Vision
Corporate spiritQuality philosophies
Core values
Mission
ESG Performance HighlightsConduct of Mei:
Optimizing Governance byUpholding Business Principles
Cause of Mei:
Assuring Quality through Inheritanceand Innovation
Ecology of Mei:
Pursuing Green Development withHarmonious Coexistence
Commitment of Mei:
Sharing a Better Future towardsWonderful Lives
We established commissions for green and low-carbon
development and for water environment management to manageenvironmental protection.We responded to the national strategy of carbon peak and carbonneutrality by developing the Action Plan for Carbon Peak andCarbon Neutrality that sets energy-saving and carbon reductiontargets.We developed the Comprehensive Assessment ManagementMeasures, specifying that environmental protection performance islinked to the remuneration of senior executives and relevant sta?.We revised the Regulations for New Product DevelopmentManagement, Negative List of Packaging Materials for NewProduct Development, and List of Restricted and ProhibitedPackaging Materials, specifying the priority of using recyclable,biodegradable, and environmentally friendly materials for packaging.We had a deep identification of climate change risks andopportunities based on the Company's production and operationsunder the ISSB framework.We identified seven main requirements for the environmentmanagement process with the tool - Key Success Factors (KSF)matrix.We lead the e?orts to draft the Calculation Method and Reporting
Standard for Greenhouse Gas Emissions of Baijiu Enterprises,
and established carbon monitoring and evaluation standards toconduct a full lifecycle carbon footprint assessment of MoutaiBaijiu.We implemented quota management for water consumption atvarious stages of our production and operations, setting targets andimplementation paths for total subsequent water intake, quota forproduction water, and water consumption per unit product.We conducted an assessment on the capacity of water ecology inthe Chishui River Basin and established a SWAT model for dynamicanalysis of water quality and microorganisms.We implemented the green transformation project for the designof external packaging for products, established a "blacklist"for green packaging materials, and supported suppliers in projectssuch as cullet recycling and reprocessing and water-savingrenovations.
We received the national honor - "Base for Practicing the ConceptThat Clear Waters and Green Mountains Are Invaluable Assets."Our carbon dioxide emissions intensity per unit of industrial outputhas decreased for two consecutive years.We achieved an annual water saving of 399,000 cubic meters and awater recycling rate of 87.07%.We purchased 91,702,000 kilowatt-hours of green electricity andattained the decarbonization goal of full coverage of green electricityfor both the core production area and Heyixing Branch in 2023.We achieved 100% utilization of brewing by-products such asdistillers' grains, cellar mud, and straws for daqu.
We established the Party Committee Talent Work Leading Groupto coordinate talent development e?orts.We established the Employee Health Management Leading
Group, and developed the Occupational Health ManagementSystem, to coordinate health with safety strategies and performancemanagement.We implemented the "Happiness at Moutai" 2023 Plan for thePilot Programme of Improving the Workforce's Life, to deliver the"Happiness at Moutai" project.We developed the Supplier Management Measures, ProcurementManagement Measures, and Supplier Relationship ManagementRegulations, etc., to improve sustainable access management,performance management, and relationship management of suppliers.We developed regulations such as the Prohibitive Rules on
Integrity in Material Supply Operations and Prohibitive Rules onIntegrity in Procurement Operations, and incorporated integrity
management-related content into supplier assessments.1,679 sessions on topics including hazardous operations, riskidentification and control, safety rectification and construction, andemergency response, as well as secondary and tertiary safetytraining, were conducted, with 45,000 participants and a coveragerate of 100% for safety education and training.In 2023, we organized seven physical training sessions for channelpartners covering all channel partners. Also, monthly online trainingsessions were conducted.We increased investment in organic certification for crops, andcontinuously improved the standards of raw material cultivation.In 2023, RMB 215 million was invested in supporting the supplierbases, and 420 square kilometers of sorghum were planted, with astorage of 141,400 tons, driving 120,000 households of farmers toincrease income and become prosperous.RMB 274 million was invested in charity in 2023.In 2023, the investment in rural revitalization totaled more than RMB
51.7 million, beneting more than 50,000 people.
We have conducted the hope project for fulfilling dreams: "ChinaMoutai – Backbone of the Nation" for 12 consecutive years, with acumulative donation worth over RMB 1.2 billion.RMB 350 million was invested in safety production, with zero major
safety incident, 100% employee safety training, and 100% timelinessrate of hazard rectication.We had a 100% annual ratio for auditing our suppliers and a 100%compliance of suppliers with the principle of clean procurement.In 2023, we achieved a score of 87 in employee satisfaction and 91.8in employee engagement.We had a 97.6 score of supplier satisfaction in 2023, exceeding 95for three consecutive years.
We set up an ESG Promotion Committee that is comprised of threesub-committees and working groups.The Board of Directors' Risk Management Committee was renamedthe Risk and Compliance Management Committee, and riskcompliance was included into the Board of Directors' coordination
purview.We fully completed all tasks in the management improvement
action benchmarked against the world's best and progressed thedevelopment of "One System and Six Mechanisms."We incorporated ESG indicators such as safety, environmentalprotection, and corporate management into the management's
remuneration assessment system.We enhanced information security and privacy protection by settingup a Leading Group on Network Security and IT headed by theChairman and General Manager and established a closed-loopmechanism for network security management.We revised more than ten information security and privacy protectionmanagement systems, including the Network and Information SecurityManagement Measures.We developed the Management Measures for Letters and Visits toe?ectively protect the legitimate rights and interests of whistleblowers.We conducted a company-wide survey on material topics andconstructed the materiality matrix.
We won the China Quality Award and EGA (EFQM Global Awards),and we introduced Performance Excellence Model and the EFQM
model.We hosted special training on compliance management and releasedthe Compliance Management Measures.We organized all employees to sign the Letter of Commitment to
Integrity.For the nine areas of significant integrity risk, we performed arened management model that featured "area-specic lists;" and weidentied 346 risk points and developed 639 targeted preventivemeasures.We carried out the "One Warning per Month Education" campaignfor a total audience so far of nearly 300,000 and 52 business ethicstraining sessions for 30,000 participants; and we organized 2,836
employees in 70 groups to visit the Moutai Integrity Education Hall.We maintained zero major or above incidents of risk control, majorincidents of data leakage, and major accidents of information security.
We have innovatively summarized the "Time-Space-Gongfa"craftsmanship quality management model, comprehensively
constructed and implemented the "365" quality management
system and built a matrix quality control mechanism with PDCA
cycle as the core.We have perfected a food safety control system technologicallydriven by four food safety platforms.We promote the construction and operation of the five innovationplatforms of "two laboratories, two centers and one station".We established a customer service center, revised the Management
Measures for Customer Consultation and Complaints, andformulated the Kweichow Moutai Standard Service Language for
Exclusive Stores, as well as the Kweichow Moutai StandardizedServices Handbook.
We signed the Consensus on International Cooperation in GlobalSpirits T3 Dialogue jointly with Diageo and Pernod Ricard regarding
"advocating responsible drinking together" and some other issues.We have built a quality and food safety management platformconnecting all key business systems from the entry of raw materials toproducts leaving the factory. The platform supports 799 physical andchemical inspection items, and more than 260,000 quality inspections.It has 35.88 million entries of quality management data assets,forming 111 quality management data models.We have independently built six national level innovation platformsand nine provincial-level or above innovation platforms; we have
nine strategic partners in scientic research, 33 collaborative teamsfor scientic research and development and 42 provincial-level andabove collaborative innovation platforms.In 2023, the maturity of quality management was 906.2 points(excellent level); the product quality assurance index was 96.8 points(excellent level). We were also shortlisted as the national quality
benchmark in 2023.
The batch inspection coverage rate of the outgoing products, the passrate of product supervision and spot checks and the pass rate of theoutgoing products were all 100%.We submitted 107 applications for intellectual property rights, andobtained 23 authorized invention patents; We published 25 papers,including the rst journal paper with impact factor higher than 15 inthe industry.We have 10 proprietary technologies, 44 leading technologies, andover 8,400 strains of microbial strain resources, as well as over100 kinds of wheat and over 300 kinds of sorghum as germplasmresources of brewing raw materials.We have collected nearly 16.83 million pieces of brewing processdata with 5G + Internet of Things + Machine Vision.We participated the campaign advocating responsible drinking,covering 32 provinces, municipalities and autonomous regions acrossChina and 1,487 sales stores.In 2023, the satisfaction rate of online customer service was 97.65%;the satisfaction rate of telephone customer service was 99.14%; andthe satisfaction rate of iMoutai was 99.36%.
International Convention on Quality Control
Circles (ICQCC)
Gold Award in the ICQCC InternationalQC Team Publication CompetitionSASAC
First Prize in the Digital ScenarioInnovation Professional Competition
for State-Owned Enterprises
Kantar GroupNo. 18 among the BrandZ Most Valuable
Global Brands and No. 1 among theMost Valuable Spirits BrandsMinistry of Ecology and Environment of the
People's Republic of China
7th Batch of Bases for Practicing theConcept That Clear Waters and GreenMountains Are Invaluable Assets
Administrative O?ce of Alxa League and
Securities Times
China's Top 100 Listed Companies in
ESG 2023
Ministry of Culture and Tourism of thePeople's Republic of China
List of Demonstration Base for theProductive Protection of State-levelIntangible Cultural Heritage 2023-2025
Time Responsibility 40 Forum Thinktank
List of Five-Star Gold Award for SocialResponsibility of China's ListedManufacturing Companies 2023Shanghai Stock Exchange
A level in Information Disclosure byListed Companies 2022-2023
Sohu FinanceChina's Listed Baijiu Companies ESG
Star RankingChina Association for QualityChina Quality Award
Phoenix Television, World Wide Fund (WWF)for Nature (Switzerland) Beijing O?ce, andRocky Mountain Institute (RMI)
ESG Excellence Top 20 List
CAPCO
Best Practice Case of Corporate
Governance
China Alcoholic Drinks Association (CADA)
First Prize in the CADA Science and
Technology Award (Project)State-owned Assets Supervision andAdministration Commission of the State
Council (SASAC)
Double-Hundred Enterprise
Brand Finance
No. 1 in the Lists of Global MostValuable Spirit Brands, Global MostValuable Chinese Baijiu Brands, GlobalSpirits Brand Strength Rating List, and GlobalSpirits Brand Sustainability Perceived ValueList in the Brand Finance's Alcoholic Drinks2023: The annual report on the most valuableand strongest Alcoholic Drinks brandsMinistry of Industry and InformationTechnology of the People's Republic
of China
Green Manufacturing List 2023
Fortune (Chinese version)China's Most Admired Company 2023
Ministry of Civil A?airs of the People's
Republic of ChinaChina Charity Award
China Securities Journal and the People'sGovernment of Nantong Municipality
Top 100 List of the 1st China ReformCup ESG Golden Bull AwardsO?ce of the Central Cyberspace A?airs
Commission
"Application Practice of theCraftsmanship Chain-Based Moutai
Circulation Traceability System "selected as a Blockchain InnovationApplication Case in 2023
China Philanthropy TimesPhilanthropy Company of the YearDepartment of Civil A?airs and Departmentof Human Resources and Social Security
of Guizhou Province
1st Guizhou Charity Award
World Brand Lab
ESG Pioneers 100 among China's
Listed Companies
China Association for Public Companies
(CAPCO)
Best Practice of Annual Report ResultsCall by Listed Companies 2022
Some of Kweichow Moutai's Awards in 2023
ESG Management SystemAt Kweichow Moutai, we practice ESG concepts in a comprehensive and holistic manner, deeply integrating them into all aspects ofproduction, operations, reform, and development. We have improved our ESG governance structure against international standards,national policies, and advanced practices. We have also systematically sorted out core issues and key projects through the four steps ofissue identication, overall planning, integration and implementation, and improvement and innovation. We are committed to optimizingthe Company's overall ESG management system, giving full play to the management mechanism, continuously empowering ESG toachieve results, and comprehensively enhancing our ESG value creation capability.At Kweichow Moutai, we uphold the Board of Directors as the highest body responsible for ESG matters. We have set up an ESGPromotion Committee, chaired by the General Manager, to coordinate ESG management. It is comprised of three sub-committees,namely, Environment, Society, and Governance, to oversee key issues in their respective elds. Each sub-committee has a committeeo?ce and special working groups to execute ESG matters. Together, they constitute a three-level (decision-making, management, andexecution) ESG management structure.
ESG Governance Structure
At Kweichow Moutai, we have deeply integrated the concepts of ESG and sustainable development into our "Five-Line" developmentstrategy with the Moutai Mei as its value connotation. We build ourselves on the conduct of Mei, aspire to the cause of Mei, orientourselves to the ecology of Mei, and fulll to the commitment of Mei. In this way, we continue to cater to people's desire for a better lifeand create sustainable value.
ESG Strategy and Planning
Kweichow Moutai's ESG governance system and structure
Committed to fostering a "world-class enterprise," we are constantly improving corporate governanceunder the framework of the "Three Meetings and One Committee." We abide by business ethics andmaintain sound risk management mechanisms to create an honest business environment and ensurethe stability and prosperity of Moutai in the long term.
Our commitment extends to building a life community of "mountains, water, forests, land, the river,and microorganisms." Focusing on the goals of carbon peak and carbon neutrality, we put effortsinto creating "production-living-ecological spaces" and attention to the "four streamlines" to set anecological development example that echoes "lucid waters and lush mountains are invaluable assets."
We uphold the principle that quality is the soul of life and adhere to the Five Craftsmanship qualityconcept. Making the inheritance more traditional and the innovation more modern, we are dedicated tobringing high-quality products and services to consumers and leading the high-quality development ofthe industry with "Moutai standards."
Bearing in mind the tenet of "Big Name, Big Responsibility," we advocate creating value together anddeveloping a "beauty-creating ecosystem" of shared benets, sentiments, and destiny. We join handswith all stakeholders to embark on the path of sustainable development and create a better life.
Board of Directors
Supervising anddirecting
General O?ce
ESG Promotion
Committee
EnvironmentalSub-committee
SocialSub-committee
GovernanceSub-committee
Ecology and Environmental
Protection Working GroupCarbon Peak and CarbonNeutrality Working Group
Occupational Health and
Safety Working Group
Community Pay-Back
Working Group
Overseas Responsibility
Performance Working
Group
Ecology Co-construction
Working Group
High-Quality Development
Working Group
Business Integrity Working
Group
Privacy and Data Security
Working Group
Conduct
of Mei
Ecology
of Mei
Causeof Mei
Commitmentof Mei
At Kweichow Moutai, we conduct company-wide identification and analysis of material topics at least once a year in light of globalsustainability trends as well as the characteristics of the industry in which we operate. Based on the identication and analysis results,we draw an annual materiality matrix, laying a solid foundation for subsequent targeted ESG management planning.
Material Topics Identication
Material topics identication process
With reference to international reporting standards, major ESG ratings, andsustainability trends in the industry, we sorted out, summarized, and updated ESGtopics by benchmarking with peers and media monitoring, and collated and identieda total of 17 topics of materiality.
Based on the survey results, we drew a materiality matrix in light of industry trends,peer benchmarking, and capital market concerns.
We submitted the materiality matrix to the ESG Promotion Committee for conrmationfor the nal 2023 materiality matrix.
Questionnaire Survey: We distributed questionnaires to various internal and externalstakeholders by mail, email, and other means to inquire about their suggestions andopinions on the Company's ESG management, and we collected 13,419 valid replies.
ESG Meetings: For special stakeholder groups, we convened ESG meetings forspecialized communications on ESG topics.
Identifyingmaterial topics
Drawinga materialitymatrix
Reviewingthe materialitymatrix
Engagingstakeholders
Environmental topicsSocial topicsGovernance topics
Importance to Kweichow Moutai's sustainable development
Topics of moderate importance
Kweichow Moutai's ESG materiality matrix for 2023
Importance to stakeholders
Topics of high importance
Topics of low importance
Packaging material and waste management
Water management
Products' carbonfoot print
Business ethics and anti-corruption
EcologicalconservationCustomer service
Addressing climate change
Supply chain management
Product safety and quality
Risk managementCorporate governance
Public welfare activities
Responsible drinking
Employee rights, interests, and benets
Occupational healthand safetyResponsible marketingOperational compliance and
privacy and data security
At Kweichow Moutai, we have incorporated the concept of community into our close development relationship with stakeholders. Werespond to stakeholders' concerns and demands with practical actions and maximize the cohesion of stakeholders' forces. In this way,we form a "eco-system of Mei" of shared benets, sentiments, and destiny, joining hands with all parties to embark on a journey to greenand sustainable development.
Stakeholder Communication
The key issues of concern are comprehensively identied from the results of the ESG materiality analysis of Kweichow Moutai and regular communication withKweichow Moutai's stakeholders.
Product safety and qualityCustomer serviceResponsible marketingResponsible drinking
Matrix-based quality control andquality management throughoutthe lifecycleImproving the customer servicesystem and enhancing consumersatisfactionStandardizing regular marketingcommunications and eliminatingexaggerated and false promotionActively advocating responsibleand healthy drinking
Operational complianceOpenness and transparencyGood returns
Optimizing governance structureand adhering to the basicprinciples of complianceImproving information disclosureand maintaining proactivecommunicationReasonably distributing protsand preserving and increasing thevalue of assets
Occupational health and safetyRemuneration and benetsand the protection of rights andinterestsEmployee training and careerdevelopment
Setting up a Leading Groupfor Comprehensive Health tocoordinate the work on health andsafetyImproving the remuneration andbenet system and e?ectivelyprotecting the legitimate rightsand interests of employeesImproving the promotion channelsfor employees and the employeetraining system
Communication and ResponseExpectations and Demands
Stakeholder
Shareholders andinvestors
Customers and
consumers
Employees
Supply chain managementBusiness ethics
Improving the suppliermanagement system and creatingthe "six supply chains"Maintaining open and fairprocurement and improving thereporting channels
Addressing climate changeResponsible marketingEcological conservation
Building a green value chainand promoting the sustainabledevelopment of the industryStandardizing regular marketingand communications andstrengthening cooperation in thepromotion of responsible drinkingCreating "production-living-ecological spaces" and gatheringe?orts into environmental andecological conservation
Operations in compliance withthe lawEcological conservationHealthy development of theindustryDriving local development
Improving the mechanism for law-based corporate governancePromoting the establishment ofa long-term mechanism for theecological conservation of ChishuiRiver BasinMaintaining a "Mei" competitionand cooperation ecology andpromoting the sustainabledevelopment of the industryPaying taxes in accordance withthe law and driving employment toboost local industries
Industry
Communication and ResponseExpectations and Demands
Stakeholder
Government andregulators
Suppliers and
partners
Governance Structure and Mechanism
It is convened in strict accordance with the Articles of Association and the Rules ofProcedure for Shareholders' Meeting.It is responsible for meeting notication, deliberation, and voting and aims to ensure thatshareholders enjoy equal status and can exercise their rights such as the right to beinformed, participate, question, and vote.Shareholders' Meeting
As the executive body of the resolutions of the Shareholders' Meeting and the decision-making body of our operations and management, it enjoys su?cient powers of operationsand decision-making in accordance with the statutory powers provided in the CompanyLaw and the Articles of Association of the Company and authorized by the Shareholders'Meeting and fully plays the vital role in "developing strategies, making decisions, andpreventing risks."It has five specialized committees: the Strategy Committee, the Audit Committee, theRisk and Compliance Management Committee, the Nomination Committee, and theRemuneration and Assessment Committee.
Board of Directors and ItsSpecialized Committee
It manages day-to-day production and operation matters in accordance with statutorypowers and authorization of the Board of Directors.It organizes and implements the resolutions of the Board of Directors and reports tothe Board of Directors, playing the role of "planning business operations, emphasizingimplementation, and enhancing management."Management
It oversees the financial position and operations of the Company and the fulfillment ofduties by directors and the senior management, and promotes the coordinated functioningand e?ective checks and balances of the corporate governance structure.It consists of three supervisors, including one employee supervisor.
Board of Supervisors
Optimize Corporate Governance
We are committed to standardized governance and building a sound modern corporate governance structure and system. Wecontinuously optimize the composition of the Board of Directors to improve Board members' performance effectiveness. We alsopromote the contract-based term of office for the management to stimulate their motivation. In this way, we effectively ensure ourscience-based decision-making and robust operations.
Governance structure of Kweichow Moutai
Board of SupervisorsParty Committee
Labor UnionYouth League
Committee
Strategy Committee
NominationCommittee
Audit Committee
Risk and ComplianceManagement CommitteeRemuneration andAppraisal Committee
Shareholders' Meeting
Board of DirectorsDiscipline Inspection
Commission(Supervision O?ce)
Management
Kweichow Moutai Co., Ltd.
We have created a multi-dimensional performance assessment system for members of the Board of Directors. In this system, theperformance assessment takes into account our production, operations, and management, the progress of business targets, theimplementation of nancial budgets, and the performance of duties. Independent directors' remuneration is deliberated and determinedby our Shareholders' Meeting. The remuneration of employee directors is assessed under our remuneration management system basedon the results of individual performance appraisals.Our Board of Directors adopts a mechanism that features "positive incentives + negative constraints" to assess the businessperformance of the management. It uses positive indicators to stimulate the enthusiasm of the management and negative indicators toensure their operational compliance, thereby strengthening the application of the assessment results and rigid fulllment. Performancefulfillment is assessed as per the Measures for Performance Assessment of Members of the Management and the Measures forRemuneration Management of Members of the Management and based on six common indicators (including total prots, incrementalprofits, and the ratio of profits to cost) as well as specialized indicators of the subdivided areas. Meanwhile, there will be scoredeductions in the case of negative events in safety, environmental protection, corporate management, and other ESG-related indicators.
Remuneration System of the Board of Directors and the Management
The Audit Committee is comprised entirely of independent directors, each recognized as an expert in theirrespective domains.The Nomination Committee and the Remuneration and Assessment Committee are chaired by independentdirectors, with a majority of members as independent directors, which further enhances independent andimpartial decision-making.
The Board of Directors includes experts in accounting, nance, law, and food, complementing each other inexpertise and providing specialized and robust support for decision-making. These professionals ensure oure?cient and science-based governance.
At the director nomination stage, we carefully assess candidates' educational backgrounds, workexperiences, and part-time services.The Nomination Committee operating under the Board of Directors evaluates the Board's structure, size,and composition regularly every year to ensure diversity and balance in skills, knowledge, experience, andgender, as well as the e?cient functioning of the Board.Currently, our Board of Directors consists of 7 members, including 3 independent, 2 female, and 1 employeedirector. The number of independent directors on the Board of Directors accounts for approximately 42.86%.The Board members are from diversied backgrounds and complementary in expertise, guaranteeing thescience-based decision-making of the Board from diversied perspectives.
Independence
Professionalism
Diversity
Composition of the Board of Directors
In 2023, we amended the Rules of Procedure ofthe Risk and Compliance Management Committeeof the Board of Directors to incorporate complianceinto the Board's management. The Risk andCompliance Management Committee gives full playto the synergistic effect of risk management andcompliance management and better coordinatesour operational risks and business standardsto advise on the Board's decision-making andsafeguard our sound development. The Risk andCompliance Management Committee has an O?ce,with the head of the Legal Compliance Departmentserving as the director, and comprised of the AuditDepartment, the Accounting Department, andother departments, which jointly perform risk andcompliance management in the Company.
We adhere to the red line development strategy and conscientiously implement the "five adherences
" for law-based corporategovernance. We continuously strengthen risk management, abide by business ethics, and act meticulously for anti-bribery, anti-corruption, anti-money laundering, and anti-unfair competition. We also provide effective protection for bona fide whistleblowers toimprove our systems and mechanisms for law-based corporate governance.
We have formulated the Compliance Management Measures, the Internal Control ManagementManual, and other systems and built a basic framework for our compliance and internal control.In addition, we have created a list of compliance obligations and set guidelines for compliancemanagement in key areas such as the Work Safety Compliance Guide and the Labor andEmployment Compliance Guide. We have also strengthened compliance reviews of majordecisions, economic contracts, rules and regulations, and new product development.We have strengthened the compliance management of related transactions. We have formulatedthe Decision-making Policy for Connected Transactions, explicitly providing the principles,decision-making procedures, and decision-making authority in related transactions, to ensure fairand reasonable pricing, procedures in legal compliance, and adequate disclosure of informationfor related transactions. We comply with pertinent provisions of the Guidelines of the ShanghaiStock Exchange on the Self-Regulation of Listed Companies No. 5—Transactions and RelatedTransactions. Our related transactions with related parties are all within the limits of the amountsdeliberated and approved by the Shareholders' Meeting and the Board of Directors of the Company.Notably, when voting on the motions on related transactions, the related shareholders will abstainfrom voting. As deliberated by the Board of Directors, the aggregate amount of regular relatedtransactions throughout 2023 did not exceed 5% of our audited net assets as of the end of 2022(excluding the amount of related transactions incurred that were deliberated and approved by theShareholder' Meeting).We continuously host compliance management training. In 2023, we invited external expertsand lawyers to deliver four training sessions on compliance for 150 compliance managementcoordinators from various departments, further enhancing their compliance awareness.
Management Structure
Compliance and Internal Control
Regulate Corporate Acts
Compliance for
In 2023, we invited externalexperts and lawyers to deliver
training sessions
compliance managementcoordinators from variousdepartments
Board of DirectorsRisk and Compliance Management
CommitteeAudit Department, Accounting Department,Discipline Inspection Commission(General O?ce), Organization and Human
Resources Department, CorporateDevelopment Department
Legal ComplianceDepartment
Risk and compliance management structure of Kweichow Moutai
Five adherences: Adherence to law-based corporate governance, adherence to compliance management, adherence to law and business integration, adherence toconstructing a well-structured and complete work system of rule of law, and adherence to fostering outstanding and consummate professional capabilities of rule of law.
We maintain comprehensive risk management. Aiming to "develop policies, build systems,and consolidate the foundation," we have developed the Comprehensive Risk ManagementSolutions, the Compliance Management Measures, and other policies, and established a "rstresponsible person" management system for risk and compliance that is composed of theChairman of the Board of Directors, the General Manager, and the heads of our units. Focusingon "six major risks
," we have established a risk database, optimized the processes of riskidentication, assessment, control, and improvement, and strengthened the systematic control ofrisks in key areas, thereby e?ectively preventing and resolving various types of risks. In 2023, wemaintained zero major or above risk control events.
We uphold business integrity and strictly abide by the Anti-Monopoly Law, the Anti-Unfair Competition Law, the Supervision Law, theAnti-Money Laundering Law, and other laws and regulations, as well as codes of business conduct. We adhere to legal compliance inmarket competition and oppose any form of corruption, bribery, money laundering, monopolization, and unfair competition.
Developing an anti-corruption system is one of our priorities. We and our subsidiaries have set updisciplinary inspection agencies or are equipped with disciplinary inspectors. We have developeda Five-Sphere Integrated
coordinated supervision working mechanism to further strengthen thecollaboration and cooperation among our supervisory bodies. By converging supervision forcesand improving the supervision system, we have laid a robust groundwork for anti-corruption.For the nine areas of signicant integrity risk, we have identied the risk points of each segmentand formulated preventive measures. We perform a rened management model that features"area-specic lists," where we dynamically locate risks and investigate hidden hazards based onproblems identied in regular supervision. To date, we have successfully identied 346 risk pointsand developed 639 targeted preventive measures.In the Supplier Code of Conduct, we set out the requirements of anti-bribery, anti-corruption,and other business ethics for all suppliers and distributors. In the contract review and signingprocesses, we have integrated anti-commercial bribery terms or integrity responsibility lettersinto our processes to ensure that our internal anti-bribery and anti-corruption systems extend toall suppliers and distributors. To ensure our overall business ethics management, we conductannual inspections on the implementation of our anti-corruption and anti-corruption systems inaccordance with the GB/T 41835-2022 Sustainable Procurement—Guidance and our internalmanagement systems.We have enhanced its integrity culture for all by conducting lecture tours on systems and integritypromotion, as well as organizing attendance to trials of illegal cases, to increase the awarenessof integrity and self-discipline of all employees. In 2023, we brought middle and senior o?cialsand cadres to the provincial warning education base to participate in warning education activities,with an attendance of 65 people. We also hosted 52 business ethics training sessions for 30,000participants. Directly affiliated Party organizations hosted nine sessions under the MonthlyWarning program for a total audience so far of nearly 300,000. We organized 2,836 Employeesfrom di?erent units, production plants, branches, and subsidiaries in 70 groups to visit the MoutaiIntegrity Education Hall.
Risk Management
Business Ethics
Anti-bribery and Anti-corruption
In 2023,the Company maintained
major or above risk controlevents
Six major risks: Strategic risk, market risk, nancial risk, operational risk, legal risk, and public opinion risk.
Five-Sphere Integrated: The Five-Sphere Integrated supervision system is composed of supervisory bodies for disciplinary inspection, organization and personnel,audits, nances, and legal a?airs.
Hosted
Developed
We have successfully identied
Operating process of the Five-Sphere Integrated Coordinated Supervision Working Mechanism
We explained to all employees, including thesenior and middle management as well as regularemployees, the Implementation Opinions of MoutaiGroup on Further Strictly Preventing Corruption Risksand Guaranteeing High-Quality Development. Throughthis training, we have built a solid ideological line ofdefense against anti-corruption and consolidated themoral cornerstone for employees to perform theirduties correctly and work with integrity.
We launched synchronized anti-money laundering andanti-fraud campaigns in light of the actual situationof our production plants and departments througha variety of online and offline methods, such aspublishing newsletters and broadcasting promotionvideos on the intranet as well as delivering lecturesand distributing brochures at the production plants.Throughout the year, we hosted nine training sessionson "anti-money laundering knowledge," "fraudprevention," and other themes to further strengthenemployees' anti-money laundering and anti-fraudawareness.
Explaining the Implementation Opinions andbusiness ethics systems to new employees
Promoting Anti-fraud and anti-money laundering
knowledge among employees
Business ethics training
Anti-money laundering training
Referral of problemclues and related
situationsCoordinatedsupervision andspecial supervisionDynamic studyof the problem
Supervisionfor problemrecticationInformationsharingJoint meeting
Anti-money laundering
business ethics trainingsessions
targeted preventive measures
risk points
Reporting Channels
We implement the Opinions of the State Council on Establishing a Fair Competition ReviewSystem in the Building of a Market System and other pertinent regulations, and normativedocuments, as well as rules such as the Anti-Unfair Competition Compliance Guide and theAnti-monopoly Compliance Guide, and enhances the awareness of fair competition.
Several Measures of the Party Committee of the Companyfor Further Strengthening Oversight for Leadership Teamsand Their HeadsNegative List of Employees' ActsMeasures for Handling Violations of Rules, Disciplines,and Laws by EmployeesProhibitive Provisions for Integrity in Construction ofEngineering ProjectsProhibitive Provisions for Procurement IntegrityProhibitive Provisions for Integrity in Resources Supply
Anti-monopoly and anti-unfair competition
Business ethics systems of the company
Anti-monopoly Compliance GuideAnti-Unfair Competition Compliance GuideWork Safety Compliance GuideEcology and Environmental Protection ComplianceGuideRules on Supplier Management for Husks and StrawsRules on Supplier Management for Hardware andLow-Consumption Materials
During the reporting period,we didnotreceive anycomplaints or reports onunfair competition
Process of reporting and accusation handling
We always follow the principles of seeking truth from facts, complying with rules, regulations, and the law, protecting legitimate rights andinterests, hierarchical responsibility, and division of labor. We have a full-time sta? responsible for handling reports and complaints andstrictly control the access to reporting letters and visits as well as clues of the reported matter to rmly prevent the leakage of reportingletters and visits and the way they are handled.We have developed the Management Measures of Kweichow Moutai Co., Ltd. for Letters and Visits following the Regulations onHandling Letters and Visits and the Rules for Disciplinary Inspection and Supervision Organs on Handling Reports and Complaints. Thewhistleblower's name, organization, home address, telephone, e-mail, and other personal information and reporting information will bekept strictly condential. With respect to anonymous reporting materials, it is strictly prohibited to verify the whistleblower's handwriting,Internet Protocol (IP) address, and other information without authorization. Through the above initiatives, we effectively protect thelegitimate rights and interests of whistleblowers.If a whistleblower is threatened or victimized due to reporting and accusing and les an application for protection, we will provide timelyprotection in accordance with the rules and regulations. If a person being reported retaliates (against the whistleblower) by jeopardizingpersonal safety and damaging property and reputation, he or she will be seriously dealt with in accordance with the rules and disciplines.People suspected of violating the law will be transferred to the judicial organs in accordance with the law.
Whistleblower Protection
Letter and visit handling
department
Disciplinary Inspection and
Supervision O?ce
Case supervisionmanagement departmentSupervision andmanagementPreliminaryvericationComprehensiveanalysisReceiving a reportAssigning a numberand registeringClassiedtransferring
Collective researchHandlingFeedback
Telephone: 0851-22385896Website: http://guizhou.12388.gov.cnMailbox: Elevator entrance, 6/F, O?ce Building of KweichowMoutai Co., Ltd.
We strictly comply with the Cybersecurity Law, the Data Security Law, and other laws and regulations. We have revised more than tensystems, including the Management Measures for Network and Information Security and the Management Measures for Data Security(for Trial Implementation), which apply to our headquarters and subsidiaries (branches) at all levels. An internal audit shall be conductedat least once every two years in accordance with the corresponding requirements for different grades of the graded protection ofinformation technology (IT) systems, and detailed risk assessments shall be conducted for key systemsWe have improved our management structure by setting up a Leading Group on Network Security and IT headed by the Chairman andGeneral Manager and building a network security accountability paradigm managed by the Digital and Information Management Centerand engaging all production plants, units (departments), and subsidiaries (branches). In 2023, we continued to improve the informationsecurity operation capability of our business against the ISO 27001 management system standards. We established a closed-loopmechanism for network security management that encompasses prevention, assessments, monitoring, drills, and emergency response,and we also collated and formulated a list of eight external and 14 internal key data categories. By clarifying the data content, accessroutes, collection frequency, and responsible departments, we have strengthened the management of multidomain data throughout thelifecycle.
Information Security
Information Security and Privacy ProtectionWe continuously improve our network and information security system and management structure, consistently strengthen our networkand information security technical capabilities, and enhance our information security training and assessment to ensure data and privacysecurity.
Close-loop network security management system of the company
P
la
n
D
o
Act
Check
Basic
Protection
Capabilities
Intrusion Detection
System (IDS)
Regular inspections
Security audits
Identifying assets
Identifyingvulnerabilities
Authentication
Organization
Governance measures Identity audits
Implementation
OperationalsafeguardsOn-site incidentanalysis
Judging the incidentstateDetermining theincident object
Determining theincident timeProblem investigationExpert judgmentProblem elimination
Summary of theemergency incident
Identifying threatsFirewallsIntrusion PreventionSystem (IPS)
Vulnerability scanningSecurity monitoring
Identity authorization
Preparation
Technical measuresOther securitystrategies
Summary
Other measures
Security protection
measures in placeOther securityprotection devicesSecurity devices and technologies
Network security monitoring
Asset identication
Security access control strategies
Network security drillsNetwork security emergency response
Determination of security measures
NetworkSecurityPrecaution
EmergencyResponseMechanism
NetworkSecurityAssessment
SecurityMonitoringand DrillsUpdatingsecurity policy
OptimizingprocessesNetworkupgradation
Operationguarantee
We have strengthened information security publicity, education, and skill training amongemployees, and have expanded the training to external partner units and suppliers. Inproject construction contracts, we set out information confidentiality requirements andsign condentiality commitment letters with all project members. In 2023, we launched tennetwork security skill training sessions for IT employees, organized a competition for networkand information security standards and skills, and conducted network and informationsecurity risk assessments and information system audits. We achieved zero major dataleakage incidents and zero major information security accidents throughout the year.
We strictly comply with the Personal Information Protection Law of the People's Republic of China and other applicable lawsand regulations. We have formulated the Moutai's Regulations on the Management of Personal Information Protection (for TrialImplementation), the Guidelines for the Implementation of Classified and Graded Data Security Control, and other systems andregulations. In these documents, we dene users' rights in controlling their data and ensure that users have the right to access, correct,and delete their personal data. In this way, we reinforce the compliance management of data.
Privacy Protection
In the operation of the iMoutai digital marketing platform, we collect and use customers' personal information in accordancewith the principles of legality, legitimacy, and necessity.The collection of supplementary information does not a?ect the useof basic business functions by customers. We collect user information in accordance with the principle of minimum necessityand provide clear reminders and notifications in user registration, login, and authentication. We define users' rights incontrolling their data and ensure that users have the right to access, correct, and delete their personal data. We also protectuser information through encrypted storage, desensitized display, DID digital identity, and other technologies.
In 2023, we integrated eight nancial systems (including budgeting, accounting, funding, reimbursement, and taxation) andbuilt three new business systems (intelligent legal a?airs, human resources, and asset management) and a technologyplatform. We also put online a "business-nance integration" project platform centered on the Corporate Service Bus, theUnied Approval Center, and the Finance Middle Platform. In this way, we have further promoted the integration of businessand nance, achieved internal data interoperability, and eliminated information islands.
User information management measures of the iMoutai App
"Business-nance integration" project platform
Achievedmajor data leakage incidentsand major information securityaccidents throughout the year
NetworkSecurityManagement
Initiatives
B
a
s
ic
P
rotection
Capabilities
B
a
s
ic
P
r
ote
c
t
io
n
C
a
p
a
b
ilit
ie
s
B
a
sic
Protection
Capabilities
Adapt
to
l
o
c
a
l
co
nd
itio
ns
F
ol
low
t
he
l
aws
Gongfa
The ruleof timeThe ruleof term
The needs of
the timesTime
Space
OriginalityBrewing
space
Ecosystem
Socialresponsibility
Regulationsandstandards
Scienticinterpretation
TraditionalGongfa
K
e
e
p
in
tune
with
the
tim
e
s
Pursue Superior QualityBased on the long farming culture, rich cultural heritage and a wealth of experience in quality management, Kweichow Moutai hasproposed a new quality management structure including quality culture, "Time-Space-Gongfa" originality quality management model,"365" quality management system, and new matrix control mechanism from four dimensions- culture, approach, pathway, and measure,so that the philosophy of "quality is the soul of life" is implemented by all employees and applied to all scenarios throughout the wholeindustry chain.
Taking the philosophy of "quality is the soul of life" as its belief in quality, we care for our soul of life with "Originality, Soul, Method,Technology, Talents". It adheres to the quality concept of "honoring the principles, abiding by the rules, sticking to the craftsmanship,cellaring enough baijiu to age, and not selling freshly brewed baijiu" throughout the entire lifecycle, and strictly implements the workrequirements of "Three Prohibitions, Four Compliances, and Twelve Perseverance" in the production process, making quality culture aconsensus among all employees, and resulting in excellent products and rst-class services.
Quality Culture
Qualityphilosophyof "vecraftsmanship"
Soul
TechnologyTalents
Method
Originality
Build quality methodAlways maintain originality
Forge quality soul
Rene quality technologyCultivate quality talents
Execute full control over theentire processes, scenariosand employeesStick to the original principleof "Reach for higher groundwith quality as the priority
Implement the philosophy of"quality is the soul of life"
Enhance modernized qualitymanagement with thesupport from standards andtechniques of productionquality managementStrive to build rst-classcraftsman teams, researchteams and cultivatemanagement elites
We have innovatively summarized the "Time-Space-Gongfa" originality quality management model rich in natural and culturalcharacteristics, based on years of production practice. We coordinate and balance the natural, human, and ecological elementscontained in the "Time-Space-Law" model to maintain the quality and characteristics of Moutai.
Quality Management Model
"Time-Space-Gongfa" Craftsmanship Quality Management Model
Guided by the "Time-Space-Gongfa" originality quality management model, we actively promote quality improvement. It comprehensivelyconstructs and implements the "365" quality management system that claries three objectives, six tasks, and ve guarantees. Withthat, it advocates every employee is a quality o?cer, and every day is a quality day.
Quality Management System
Quality management by all employeesQuality synergy throughout the whole
regionQuality control throughout the full life cycle
All-round quality supervision throughout
the whole process by all employeesConstruction of coordinated quality and
ecological development community
Modernization of quality governance
capacity
A better quality management
systemBalanced region-wide quality
developmentA leap in the overall quality
level
Organizational leadershipTalent supportFinancial supportSupervision and assessment
Publicity
"6" tasks"3" objectives"5" guarantees
"365" quality management
Quality Management Maturity: Indicates the overall quality management level, which is evaluated through a comprehensive score.
ICQCC, International Convention on Quality Control Circles.
100%
97.1%
The batch inspection coveragerate of the outgoing products, thepass rate of product supervisionspot checks and the pass rate ofthe outgoing products wereThe promptness of productexchange reachedShortlisted as the national quality benchmark in 2023
906.2
points(Excellent level)The quality management maturity
of 2023
96.8
points(Excellent level)
Product quality assurance index
98.5
points(Excellent level)
The product quality score of Moutai baijiuFlying Fairy (Feitian)
Four QC achievements won gold awards at the ICQCC
Won the rst prize of 2022-2023 National OutstandingCorporate Culture Achievement Award
Focusing on the quality responsibility system, quality performance system and quality supervision and assessment system, we havebuilt a matrix quality control mechanism with PDCA cycle as the core, and continues to improve its quality control capacities for allscenarios in the entire industry chain throughout the entire lifecycle from "improved seed varieties" to "ne products".
Matrix Quality Control Mechanism
Quality culture system
Quality is the
soul of life
Multi-level quality
responsibility system
5+2 Quality supervision and
assessment system
Always maintainoriginalityQuality Leadership
Group
Daily inspectionby the qualityspecialistProcess qualityassessmentProduct qualitysupervision spotcheckQuality systemaudit
Specialinvestigation intoquality event
Build quality methodForge quality soul
Rene qualitytechnology
Cultivate quality
talents
Strengthen supervisionResponsibility implementation
Cultural leadership
Daily operation
PD
CA
Quality CommitteeChief quality o?cerQuality specialistQuality supervisorQuality inspector
Type inspectionUnannouncedinspectionSupplierqualitymanagement
Procurement
quality
Processquality
Productquality
Quality of
service
Quality eventcontrolMaturity of quality
management
Product qualityassurance index
Product quality
grading
Quality supervision
Quality controlDecision-making on quality
? Top-level design? Strategic planning? Command and
coordination
? Quality supervision and
guidance? Quality supervision and
inspection
Quality improvement
? Enhance team
professionalism? Prompt rectication of
issues and deciencies
? Plan as a whole by the chief
quality o?cer? Daily management by the
quality specialist? Supervision by the quality
supervisor
Whole process quality
performance system
Matrix Quality Control Mechanism
Strictly implementing the "four strictest" requirements for food safety, we have set up a food safety director, as well as food safetyo?cers in key production links, and built a full scenario food safety responsibility system. By introducing various advanced detectiontechnologies and management methods, we have established a food safety control system institutionally driven by risk prevention andcontrol processes and technologically driven by four food safety platforms.
Food Safety Management
Domestic andinternationalfood safetyinformationEvaluation
of thee?ectivenessof food safetycontrol system
Information gatheringand sortingIntegration,interpretation andanalysisIssue warning
prompts
Research anddevelop technicalmethod
Implement 1+1+NmonitoringImplement HACCPplanMonitoring change
dynamics
Graded controlTighter control of
critical risksRegular control of
high risksFront end control oflow risksScreen risk factorsDraw a risk map
Emergency responsemanagement
Product safety
Library of regulations
and standards
Library of internal andexternal risk factors
Risk factor level
database
Risk warningRisk assessmentRisk responseRisk monitoring
Food safety management systemMoutai has established an industry-leading database on domestic and international regulations and technical standards related toalcoholic foods. It has covered the entire industry chain. We also regularly identify and update domestic laws, regulations, and standardsrelated to quality and safety. Every year, we release A List of Applicable Laws, Regulations, and Other Requirements for Quality andFood Safety, covering 365 laws, regulations and standards. We have collected more than 1,100 international standards related toalcoholic foods, based on which we regularly conduct quality and safety compliance assessments and analyses of alcoholic foods in keyexport countries and regions.Based on the development of science and technology and the requirements of laws, regulations and standards, we have formulatedquality risk assessment methods and management regulations taking into account the characteristics of the baijiu industry chain. Usingthe risk matrix method, we regularly identify and update the quality and safety risks throughout the entire industry chain. And we havedeveloped targeted and di?erentiated control measures to control these risks by levels and categories.
Identify and evaluate exogenous and endogenous food safety risksinvolved in the entire industry chain, and update them regularly.Establish a list of risks
Implement such services as food safety risk assessment access forprocurement materials, procurement acceptance quality control, andproduction process quality and safety evaluation.Strictly control theentry of exogenous
risks
Conduct daily inspections based on the risk control checklist, takemeasures to address identied issues and report them in a timely manner.If no issues are identied, it still needs to be kept in record and reportedas a "zero report". Every week, each production plant (unit) conductsrisks and hidden dangers inspection, studies and proposes solutions, andforms a Weekly Food Safety Inspection and Governance Report. Organizescheduling meetings to analyze and summarize the food safety controlsituation, and report to the leader in charge, and deploy food safety controlwork with focused goals for the next month.
Establish a workingmechanism of "daily
control, weeklyinspection, andmonthly scheduling".
Establish and continuously improve the rapid screening method systemfor food safety risk factors, establish emergency systems such as theFood Safety Emergency Response Plan and the Product Recall ControlProcedures, and regularly conduct emergency drills.Implement foodsafety risk monitoringthroughout the entireindustry chain
Preventionand controlmechanism
We have built a quality and food safety management platform, covering allbusiness scenarios throughout the entire process, and connecting all keybusiness systems from the entry of raw materials to products leaving thefactory. It supports 799 physical and chemical inspection items, and morethan 260,000 quality inspections. It has 35.88 million entries of qualitymanagement data assets, forming 111 quality management data models,which makes it possible to conduct real-time supervision and analysis ofquality and safety process data.Moutai has completed the certication of seven major systems, includingthe quality management system and HACCP system, which have beenintegrated for operation. Moutai has established 128 quality assurancesystems covering the entire industry chain, 133 quality and safetytechnical standards, and 1,123 control indicators.
System certications
Adhering to the "four orientations", we build a scientific and technological innovation system supported by projects, platforms, andtalents, and continuously improves systems and mechanisms. We draw upon basic theoretical innovation to further discover andunderstand the brewing mechanism, use modern scientic and technological achievements to continuously improve our modernizationlevel, and promote high-quality development of our scientic and technological innovation work, writing a new chapter for Moutai Era ofMei in scientic and technological innovation.
Technological Innovation System
Deepen Technological Innovation
Moutai seeks to balance inheritance and innovation, making inheritance more traditional and innovation more modern. We lay outour innovation chain around the industrial chain. Empowered by digital technology, we continue to develop relying on technologicalinnovation and enhances our comprehensive strength in technological innovation.
We keep improving our innovation mechanism and management system to continuously enhance our capacity to control scientificand technological innovation. We adjusted the members of the Science and Technology Committee and its subordinate professionalcommittees to e?ciently plan and coordinate the operation of the innovation system. We implemented the mechanism of "open biddingfor selecting the best candidates" for making breakthroughs in technology R&D, gathering innovative wisdom and resources, andstimulating innovation vitality.
Improve the Innovation System and Mechanism
120450
Organized
review meetings research topics
Open bidding for
11.18%
A year-on-year increase of Reviewed
scientic research projects,methods or plans
More than
research teams involved
Improving the system ofscientic research investment
E?cient operation ofscientic research review
Implementing the mechanismof "open bidding for selectingthe best candidates" for makingbreakthroughs in technology R&DR&D investment of
We use the "1+M+N" technology innovation mechanism to gather internal and external innovation forces, maximize the utility ofadvantageous resources, and orderly promote the construction and operation of the ve innovation platforms of "two laboratories, twocenters and one station", making every e?ort to build the best platforms for scientic and technological innovation and achieving newbreakthroughs in the construction of traditional brewing science and technology innovation platforms.
Build Technological Innovation Platforms
Independently built platforms
Collaborative R&D platform
National level innovation platforms
Provincial-level and above innovation platforms
Strategic partners in scienticresearch
Collaborative teams for scienticresearch and development
Provincial-level and above collaborativeinnovation platforms
The construction of ve innovation platforms- "two laboratories, two centers and one station"
Guizhou Provincial Key Laboratoryof Industrial Microbiology
Guizhou Baijiu Manufacturing Innovation CenterChishui River Maotai Ecosystem Field Scientic Observation and Research Station
Having ten approved scientic researchprojects; having systematicallyidentied 8.37 million non-redundantgenes in brewing strains, of which
29.37% were new genes.
Entering the trial operation stage; Havingadmitted one new member unit, and orderlyadvancing 35 scientic research projects;Having developed two testing prototypes toraise the level of inspection and monitoring.
Having promoted the construction of observation stations and carried out sevenR&D projects; having introduced Nine new atmospheric automatic monitoringdevices and built two hydrological and water quality automatic monitoringstations; having preliminarily constructed the basic database of Moutai EcologicalEnvironment Big Data Platform.
Having completed institutional constructionand promoted 12 scientic research projects;Having six new varieties been granted plantvariety rights by the Ministry of Agriculture andRural A?airs of the People's Republic of China.
Entering the e?cient operation stage,carrying out 30 scientic researchprojects; Having built a digital packagingproduction line and achieved onlineautomatic detection of key processes.
Key Laboratory of Specialty SorghumInnovation
Guizhou Brewing EngineeringTechnology Research Center
millionRMB
Transformation and application of scientic research achievements by Kweichow Moutai in 2023
We are gradually strengthening the transformation and application of scientic research achievements. We promote basic research byfocusing on such areas as brewing raw materials, brewing microorganisms, process equipment and technology, brewing environmentand ecology, avor, and food safety, and actively promote the transformation and application of scientic research achievements.
Accelerate the Application and Transformation of Scientic and TechnologicalAchievements
The local standard for Henan Province Technical Regulations for the Production ofBaijiu-Brewing Wheat in Southern Henan has been formulated and released, appliedto the planting of organic wheat and over 1,533,333 m
of new wheat varies in theplanting base in Southern Henan;Two new sorghum varieties, Nuomao 2301 and Nuomao 2302, were bred andregistered. The Hongyingzi and Hongzhenzhu sorghum varieties were shortlisted asone of the leading varieties in agriculture in Guizhou Province.
A convolutional neural network model for rapid detection of sorghum indicators wasestablished, improving detection efficiency by 60 times, increasing the number ofdetection indicators by 4 times, and improving detection accuracy to 99.6%;We constructed a technology system for rapid identification and detection of thegroup of a key yeast, achieving rapid detection of key yeasts, and enhancing thecapacity to control the brewing process;A near-infrared spectroscopy detection model for the physical and chemicalindicators of the materials during brewing process was established, improving thedetection e?ciency by 20 times.
We promoted the application of the concentrated grinding and rotation system forbrewing sorghum, increasing the grinding speed by 9.7%, e?ectively reducing laborcosts for transportation, and improving the utilization of space;Four detecting prototypes were developed, the first ones of detecting equipmentdeveloped by us; And one prototype was put into extensive application, e?ectivelyimproving detection e?ciency and e?ectiveness;We established a digital packaging demonstration line, comprehensively improvingthe productivity for product packaging, increasing production capacity by 1.57 times,and reducing product exchange rate by 6 times.
Research achievements in brewing raw materials are promoted to growers
Continuous strengthening of brewing process control capabilities
Achieving new breakthroughs in equipment research and development
We lay out innovation chains around the industry chain, and deeply promotes the "4 dimensions" research system on raw materialcultivation, the "ve major core technology systems" in the brewing process, and the "5-dimensional quality expression" technologysystems, enhancing Kweichow Moutai's driving force for high-quality development through comprehensive and deep innovation andcreation.
Promote the Specialization of the Industry Chain
Improved
seedvarieties
E?ective
methods
Favorableland
Healthyecology
Rawmaterialcultivation
Brewingprocess
Basicresearchsystem
ProcesstechnologycontrolsystemFood safety
controlsystem
Liquor bodydesignsystemQualityevaluation
system
ProductqualityProduction
area
Gongfa
Diversityof crude
baijiuDrinkingcomfort-ableness
Sensoryfeatures andtypical style"4 dimensions" research
5-dimensional quality
expressionFive major core technology
systemsConstruction of industry chain projects
Scientic research projectscarried out around the "455"R&D system
Developed or introduced
applicable advanced
technologies
93.1%
Technology researchvalue chain coverage
Science and technology innovation awards granted to Kweichow Moutai in 2023 (partially listed)
AwardProject nameAwarder
First Prize of Professional Competitionfor State-owned Enterprises in Digital
Scenario Innovation
First Prize of Science andTechnology Award
Second Prize of China Quality
Technical Award
First Prize of Science andTechnology Progress Award
Second Prize of IPv6 TechnologyApplication and Innovation Competition
Gold Award at the ICQCCS2B2C Full chain digital control and collaboration
for marketing services
Evaluation of key environmental factors in the
main production areas of Jiang-avor baijiuand the research on their carrying capacity
Research and application of key technology for5-dimensional quality expression of Moutai Jiang-avor baijiu based on consumer perception
Exploitation, feature analysis and applicationof yeast resources for Jiang-avor baijiu based
on multi-omics technology
Moutai industrial Internet and the evolution,
application and construction practice of IPv6
Development of a new method for evaluating the
quality of pit mudThe State-owned Assets Supervision andAdministration Commission of the State Council (SASAC)
China National Food Industry Association
China Association for Quality
China Alcoholic Drinks Association
China Academy of Information and
Communications Technology
China Association for Quality
1044
Published
Applicationsfor intellectualproperty rights
Proprietary technologiesLeading technologies
Preserve microbialstrain resources overhas increased
Germplasm resources of brewingraw materials over
Including
Including
and the rst journal paper withimpact factor higher than
Authorizedinvention patents
papers
8,400strains
6.67%
kinds of wheatkinds of sorghum
papers indexed by SCI
inventionpatents
in the industry
Presided over the revision ofthe national standard QualityRequirements for Baijiu Part 4:
Jiang-avor Baijiu
Participated in the formulationand revision of three standards,namely, the Terms of Daqu forBaijiu Brewing, the Guidelines for
Water Footprint Assessment inFood and Fermentation Industry,and the Daqu for Baijiu Brewing
Drafted two group standards,namely GHGs AccountingMethods and Reporting Standardsfor Baijiu Enterprises and CarbonFootprint Evaluation Standard of
Baijiu Products
We scientically summarized the characteristics of the traditional productionprocess of Jiang-flavor baijiu, created sensory terms for its aromacharacteristics that are easy for consumers to understand, and established avisual expression system for its quality to meet the needs of di?erent groups.
We promote our standardization achievements, and fully leverage theleading role of "Moutai Standards" to drive the collaborative improvementand enhancement of industrial and supply chain quality.
We take scientific and reasonable carbon accounting and life cycleassessment of baijiu products with carbon label as the way to contributeto the achievement of carbon peaking and carbon neutrality of thebaijiu industry, and provide strong support for the green and low-carbondevelopment of the industry.
Eagerly embracing digital change and ushering in the era of building Smart Moutai 2.0, we have enhanced the construction of digitalbase and business system from seven aspects, namely "terminal, network, cloud, data, application, intelligence, and security", andhave been building basic platforms such as Moutai Cloud, big data, master data, industrial Internet, and blockchain, to support safe ande?cient operation of digital applications.
We promote the construction of industrial Internet, and the application of 5G and AI, as well as blockchain for di?erent scenarios, toimprove its capacity to link upstream and downstream industries.
Construction of Smart Moutai
In 2023, in terms of management and control, we launched a business and nance integrated platform, with the "Human Resources,Financial Management, Warehousing and Logistics, and Legal Compliance" as the core, to promote the integration of business andnance. In the supply chain, we have built platforms for procurement and supply, as well as warehousing and logistics to integrateprocurement and supply processes. In addition, we have achieved online collaborative transportation with 1,884 suppliers, e?ectivelyimproving the operational capabilities of both supply and demand sides. We have integrated the information on Moutai baijiu duringthe entire process from rolling o? the production lines to reaching the end consumers, built our capabilities for end-to-end services thatintegrated warehousing, transportation and distribution in China, and improved the e?ciency of warehousing, distribution and logistics.In terms of marketing, we promote the standardized operation of iMoutai, the digital marketing platform. Focusing on strengtheningplatform construction, expanding user scale, and enhancing service experience, we continuously enrich product matrix and user rights.In April 2023, iMoutai won the rst prize during the Professional Competition for State-owned Enterprises in Digital Scenario Innovation;As of December 31, 2023, iMoutai has a total of 53.863 million registered users, among whom 38.783 million are identity veried users,and average monthly active users of 11.683 million.
Promote Industrial Innovation and Development
In terms of industrial Internet, Kweichow Moutai has obtained the operation license for secondary node of industrial Internetidentication and resolution in the alcoholic drinks industry, and access to the national industrial Internet identication and resolutionsystem. It has completed the transformation of a new standard production line of Moutai baijiu and the upgrading of storageinfrastructure. It has issued nearly 16.32 million industrial Internet identiers for Moutai baijiu and Moutai-avored series products,and nearly 17.44 million industrial Internet identiers for 12 types of packaging materials from 69 packaging material suppliers.;We have carried out scenario-based collection of baijiu-making and brewing process parameters through the combination of 5G,Internet of Things, and machine vision. Visual algorithms, digital models, and other technologies have been introduced to facilitatethe visualization of knowledge. Nearly 16.83 million pieces of brewing process data were collected. Based on the brewing processdata, we have established the evaluation algorithm model for ve major processes, namely sorghum soaking (incorporate waterinto sorghum, one of the brewing materials), steaming and boiling in a steamer, grains cooling and mixing with daqu, stackingfermentation, and anaerobic fermentation. Therefore, quantitative evaluation indicators are extracted to digitally interpret traditionalbrewing processes;We have built Moutai Tiangong Chain and Jiangpin Chain. We use "Tiangong Chain" to make iMoutai's lottery trustworthy andensure the compliance, legality, fairness, and impartiality of the subscriptions, providing users with privacy protection and preventingtampering. The "Jiangpin Chain" makes it available for us to collect data efficiently and securely during packaging production,warehousing and logistics, terminal sales and other links of Moutai baijiu products, and also enables the connection and integrationof multi-layer information, and the storage of trustable digital evidence onto the chain, forming a complete trustworthy traceabilityinformation data chain. The two chains have achieved data pulling and consensus through cross chain bridges, supporting crosschain operations. As of December 31, 2023, "Tiangong Chain" has generated a total of 1.7 million certicates, with a cumulativetransaction volume of 51.6 million on the chain. The total number of transactions on the Jiangpin Chain is 53.79 million, the totalnumber of traceability certicates it generated is 51.56 million, and the total number of cross-chain certicate transactions is 2.22million. It has responded to 58.89 million inquiries of the public about traceability information of the products.
Innovative Application of New Technologies
53.863
Total registered users
million
11.683
Average monthly active users
million
We have established a corporate standard system with Moutai characteristics that covers the entire industry chain, including 160technical standards in 13 categories and 1,123 control indicators, to implement strict quality control throughout the entire productlifecycle. Giving full play to its leading role in technology in the industry, we promote scientific and technological innovation in thebaijiu industry. We participate in industry associations, actively respond to initiatives, and preside over and revise various standards ofalcoholic drinks, making continuous e?orts to contribute "Moutai Standards" to raising the technical level of the industry and improvingthe standardization system, and thus promoting high-quality development of the industry.
Lead Industry Development
Execute Responsible MarketingKeeping a strong sense of social responsibility in mind, and taking the "ve-integration marketing approach" as theguide, we are committed to protecting the legitimate rights and interests of consumers in an all-round way, vigorouslyadvocating the concept of responsible drinking, and promoting a healthy and civilized lifestyle. We keep improvingservice capabilities, and improving after-sales mechanisms, in a bid to bring satisfactory services to consumers.Upholding the principle of integrity management, we strictly abide by laws and regulations such as the AdvertisingLaw of the People's Republic of China, the Interim Measures for the Administration of Internet Advertising, and theConsumer Rights Protection Law of People's Republic of China, and have formulated the Management Measuresfor the Marketing and Promotion of Moutai Baijiu Distribution System, the Guiding Principles for the Management ofGeneral Distribution Products (Brands), the Marketing Activities Support Program for Kweichow Moutai Baijiu, and othersystems to standardize advertising and marketing, and safeguard consumers' rights and interests.
We keep improving the advertising review process. We have formulated the News Publicity Management Measures, the AdvertisingReview Process and Operation Guidelines, and the Advertising Positive and Negative List, clarifying the dissemination content andreview mechanism. We implement "three reviews and three proof-readings", reviewing all promotional information and content to bereleased to the public to provide correct guidance to consumers from the root.We insist on strengthening content review. Adhering to the principle of authenticity, we objectively describe product promotion, anddon't include any suggestive or inducing words in the text and language expressions. On the basis of ensuring clear and distinguishableimages in graphic creativity and videos, we review the elements in the images to ensure accuracy and veriability. Meanwhile, we strictlyimplement the special prohibitive regulations for advertisements on liquor in promotion, including but not limited to:
Marketing Compliance
No drinking inducement or instigation orimmoderate drinking;No description of an act of drinking;No description of driving a car, vessel, or airplanedriving, among others;No explicit or implicit indication that drinkingrelieves tension and anxiety, increases physicalstrength, cures diseases or has any other e?cacy;No promotion indicating that drinking is harmless;
We clarify the ingredients and alcohol content on the product packaging, and give a warning that [Drinking too much is harmful to health]and other signs in the product label. We also add some warm tips such as [Not selling baijiu to minors] [No driving after drinking] intothe product introduction page of the o?cial website, and put [We advocate responsible drinking] [Underage drinking is prohibited] andother signs in the TV advertisements, Internet advertisements and other advertisements to proactively alert people to potential risks andvigorously guide end consumers to drink responsibly.Complying with the rule of "not selling alcoholic drinks to minors", and paying attention to the impact of alcoholic products on theunderage population, we urge our sales-oriented subsidiaries to develop and implement a responsible marketing system.
No advertisements on mass media targetingminors;No promotion showing driving vehicles afterdrinking;No drinking or discriminatory content promotion inplaces with religious or ethnic beliefs;Other content or situations prohibited by laws andadministrative regulations.
Kweichow Moutai Jiang-avor (Moutai-avor) Baijiu Sales Co., Ltd. has formulated internal regulations related to responsiblemarketing, such as the Management Measures for General Distribution Brands (Products), which clearly require distributorsto strictly comply with laws and regulations such as the Trademark Law of the People's Republic of China and the AdvertisingLaw of the People's Republic of China, in which there are clauses that state that it is prohibited to mislead consumers bymaking fictitious, exaggerated, one-sided, or other misleading false advertisements on the products, sales network, orservices.
Kweichow Moutai Baijiu Import and Export Co., Ltd. has formulated the Policies and Management Measures of KweichowMoutai Baijiu Import and Export Co., Ltd. on "Responsible Marketing". It takes an active part in ensuring the authenticity ande?ectiveness of promotional content, maintaining a good competitive environment, protecting consumer privacy and data,and advocating responsible drinking. In addition, the Company revised the Measures of Kweichow Moutai Baijiu Import andExport Co., Ltd. for the Management of Expenditure for Advertising and Promotion Activities in Export Markets, strengthenedthe audit methods and intensity for activities and advertising, and strengthened the closed-loop management of activities andadvertising from audit, supervision to evaluation.
Kweichow Moutai Jiang-avor (Moutai-avor) Baijiu Sales Co., Ltd. Formulated Responsible Marketing Regulations
Kweichow Moutai Baijiu Import and Export Co., Ltd Formulated Responsible Marketing Regulations
We strictly adhere to the code of conduct for responsible marketing, and carries out special training on responsible marketing for thesta? of legal compliance departments, brand promotion departments, distributors, self-operated stores, and exclusive stores etc.Publicity and Training in Responsible Marketing
Training on responsible marketing
Principles ofresponsiblemarketing
Comply with laws and regulations;Comply with various rules and regulations formulated by the competent authorities andindustry self-discipline conventions;Comply with industry rules and market norms.
Targetaudience ofproducts andadvertising
The target audience shall not be minors, pregnant women, or other individuals who arenot suitable for drinking alcoholic drinks;Avoid attracting minors in marketing or promotional methods;Channels and self-operated stores are required not to sell alcoholic products to minors.
Advocatingresponsible
drinking
Advocate responsible drinking and healthy lifestyles;Proactively alert people to potential risks of drinking alcoholic drinks.
Accurate andfair information
Real information on the product;Using misleading information to promote products is prohibited.
The achievements of publicity and training in responsible marketing carried out by subsidiaries:
In 2023, Kweichow Laymau Baijiu Co., Ltd. carried out training in service standards for exclusive stores and theterminal sales system of Moutai baijiu, further improving the sales service standards of exclusive stores and improvingthe customer service level of store sta?, and carried out product knowledge training and responsible marketing policiesexplanation for core terminal stores to strengthen the implementation of responsible marketing policies in stores.Kweichow Moutai Jiang-avor (Moutai-avor) Baijiu Sales Co., Ltd. conducted a total of 10 training sessions in 2023,covering various marketing courses including responsible marketing, with 1,167 trainees.In 2023, Kweichow Moutai Baijiu Import and Export Co., Ltd. actively promoted responsible marketing, and posted 16articles on responsible marketing, with 5,512,494 impressions and 111,964 engagements.
Legalcompliance
Provide interpretation and training on the Code of Conduct for alcohol drinks advertising;Provide interpretation and training on industry regulatory requirements and market norms.
We take an active part in awareness campaigns to advocate responsible drinking.Advocation of Responsible Drinking
The Global Spirits T3 Dialogue, organized by the China Alcoholic Drinks Association and jointly initiated by KweichowMoutai, Diageo and Pernod Ricard, was held in London with the theme of "Driving innovation, pursuing sustainability,and embracing future". We signed the Consensus on International Cooperation in Global Spirits T3 Dialogue jointly withDiageo and Pernod Ricard regarding "advocating responsible drinking together" and some other issues. In this dialogue,we proposed three suggestions: establishing a "T3" hosting mechanism, establishing a dialogue and communicationmechanism, and advocating responsible drinking together.Regarding "advocating responsible drinking together", we hope to work together with other alcoholic drinks enterprisesto promote the concept of "drinking healthily and responsibly". The Company would like to join the International Alliancefor Responsible Drinking (IARD) in the future to actively promote the responsible drinking practices of the global spiritsindustry.
Kweichow Moutai put forward the proposal of "advocating responsible drinkingtogether" in Global Spirits T3 Dialogue
We conduct responsible marketing audits, inspects marketing and promotion practices and rectifies issues if necessary to improvebusiness.Responsible Marketing Audit
In 2023, Kweichow Laymau Baijiu Co., Ltd. initiated the construction of its internal control system and compiled theInternal Control Handbook of Guizhou Laymau Liquor Industry Co., Ltd., which includes marketing channel management,sales business management, and customer relationship management. It regularly conducts responsible marketing audit,conducting self-examination and self-correction for problems in marketing, and disclosing the audit results. In 2023, GuizhouLaymau Liquor Industry Co., Ltd. identied the lack of institutionalized standards for monitoring advertisements from an audit,and some advertisements were not monitored. In this regard, it actively carried out rectication.
Kweichow Laymau Baijiu Co., Ltd. conducted annual responsible marketing audit
Kweichow Moutai Baijiu Import and Export Co., Ltd. has incorporated "responsible marketing" into its internal audit process,and actively provides relevant contents for audit, including the publicity of Moutai marketing strategies, products, responsibledrinking, and environmental protection through online and o?ine advertising channels.
Kweichow Moutai Baijiu Import and Export Co., Ltd. conducts responsible marketing audits
In 2023, the Company participated the "2023 National Responsible Drinking Awareness Week", a nationwide publicwelfare campaign initiated by the China Alcoholic Drinks Association (CADA). More than 1,300 third-generation exclusivestores of Kweichow Moutai Baijiu Sales Co., Ltd. and 187 experience centers of Kweichow Moutai Jiang-avor (Moutai-avor) Baijiu Sales Co., Ltd. participated in the event, covering 32 provinces, municipalities and autonomous regionsacross China. During the event, the Company promoted the concept of responsible drinking and strived to enhance theawareness of responsible drinking among the public and consumers by posting posters at stores and distributing leaets.
Kweichow Moutai actively promotes the concept of responsible drinking
A poster on responsible drinkingLeaets on responsible drinking
1,300
The number of the third-generation exclusive stores ofKweichow Moutai Baijiu Sales Co., Ltd. amounts to
The "responsible drinking" campaignhas covered
Provinces,autonomous regionsand municipalitiesnationwide
We have established a customer service center, revised the Management Measures for Customer Consultation and Complaints, anddeveloped the Kweichow Moutai Standard Service Language for Exclusive Stores, as well as the Kweichow Moutai StandardizedService Language Handbook. In addition, we have improved the channels and methods for customers to voice their concerns such asthe 400 customer service hotline, self-operated stores in other provinces and regions, and iMoutai, as well as interviews and letters,continuously optimizing the customer complaint management system to improve the customer's consumption experience.
Improve After-sales Mechanism
Moutai offers a full lifecycle product service that integrates consultation, trading, complaints, product identification, and exchange,and optimizes the consumer experience through standardized marketing service processes. It has formulated the Kweichow MoutaiManagement Measures for Product Replacement (Rework) and the Management Measures for Exchange of Leaking Bottles tocontinuously improve product after-sales management and services. It regularly provides product exchange services in o?ine storesbased on the requirements of the entire product lifecycle, providing customers with after-sales value-added services to meet their higher-level needs and improve customer satisfaction. Moutai has established product identication service centers in various provinces acrossthe country, clarifying product identication, exchange principles, management responsibilities, and work procedures. In 2023, a total of47,076 bottles were exchanged in various stores nationwide, with 25,476 bottles being replaced under advanced exchange service. Theaverage replacement cycle was 8.23 days.
Customer Complaint Handling Process
Centralized
control
Quick processing modeof knowledge base
Complaint
interfaceCustomercomplaint
DirectIndirectImplicit
400 hotlineCustomer serviceCenter
Feedback
Receivecomplaints
Time limitedprocessingFeedback
Simple
Regular
Special
Processing by theknowledge baseReceivecomplaints
Analyze
andoutput
Receive
complaints
Emergency
response
Feedback
DistributeAccept
SuperviseLittle Red Book,Black Cat, etc
Self-operated storesin other provincesand regionsiMoutaiinterviews andletters
Complaint
typeCustomerservice center
Emergencyresponse mode
0+3+3 processing
mode
Spread Culture of Mei
Following the "Purple Line" development strategy,we improve the "Nine Series" of cultural system andvigorously promotes cultural dissemination. We activelydemonstrate its culture to the world, expands and enrichesthe connotation and denotation of Moutai culture, andpromotes the creative transformation and innovativedevelopment of excellent traditional culture.
After years of practice and summary, we have establisheda brewing culture that keeps in tune with the times,adapts to local conditions, and follows the law of nature.We schedule production cycles according to the 24 solarterms, and extend "keeping in tune with the times" to thecultural connotation of "Follow the nature and respect theman".
Adhere to the Core ofBrewing Culture
Connotation and denotation of Moutai's culture of
"Follow the nature and respect the man"
Follow thenature andrespect the
man
ndroundof Daqu
rdroundof Daqu
throundof Daqu
throundof Daqu
stroundof Daqu
th
roundof Daqu
throundof DaquSlight SnowGreat SnowWinter SolsticeSlight ColdGreat ColdBeginningof SpringRainWaterAwakeningof InsectsSpringEquinoxPureBrightness
Grain RainBeginningof SummerGrain BudsGrain in EarSummerSolsticeSlight HeatGreat Heat
Beginning
of AutumnEnd ofHeatWhiteDewAutumnalEquinoxCold DewFrost'sDescentBeginningof Winter
Round threeRound two
Round one
Round four
Round veRound six
Round sevenXiasha (to putsorghum into use)
Zaosha (to putsorghum into use)Annual service satisfaction rate
99.14%
Satisfaction score: 99.36; Number ofcomplaints related to products andservices:
9,957; Customer complaintresolution rate:
100%
Telephonecustomerservice
iMoutaiOnlinecustomer
serviceAnnual service satisfaction rate
97.65%
Customer Service Satisfaction Scores
We have explored inspiration for our products from zodiac, 24 solar terms, Flying Fairy (Feitian), the intangible cultural heritage andother traditional Chinese cultural elements, and created a series of cultural products, empowering us with culture to create more valueand providing consumers with richer cultural experiences.
With cultural characteristics of the 24 solar terms at the core, thepackaging is designed using "lustrous green" for the dominanthue. It conveys the characteristics of the solar terms throughillustrations, which showcase the harmonious coexistence of thehuman and nature. The design of the liquor body has incorporatedthe avor and characteristics of seasonal crude baijiu, giving eachproduct a unique seasonal avor.
Enrich the Cultural Connotation of Products
Kweichow Moutai 24 Solar Term Baijiu
Cultural and Creative Baijiu Jointly Launched by Moutai 1935 and Chinese National GeographyThe design of this product has been inspired by the shape ofHu Huanyong's Line or Heihe-Tengchong Line (the cultural andgeographical line of demarcation drawn by Hu Huanyong) withillustrations imitating the landmark buildings along the line. It hasintegrated the characteristic architectural clusters of eight majorcities, concretizing and materializing the geographical researchvalue of the Hu Huanyong Line, showcasing the geographicalstyle of China.
The packaging of this product has been designed focusing onthe elements of flying fairies in Dunhuang murals. The contourline drawing technique has been used, aiming to achieve theeffect of Wu Daozi's style with strokes full of changes andvigor, expressing the internal world of the characters. And thebottles are made with a brand-new ceramic craftsmanship,demonstrating the style of rock color painting, and presenting amineral ceramic texture consistent with Dunhuang murals, so thatthe product culture is in harmony with Dunhuang murals.
Scattering Flower Fairy Moutai
1.5L Guizhou Daqu Baijiu (Si Shui Liu Nian)
Guizhou ethnic batik blue has been adopted as the maincolor tone of the product, and the pictures serve as an artisticexpression of batik patterns with beautiful meanings, presentingunique Guizhou ethnic culture in multiple dimensions.
Moutai Prince (The Chinese Zodiac Year of the Loong)
The keynote of this product's packaging is Xiangye (a kind of lightyellow) and bright yellow is the dominant hue. The three paintingsSoaring Loong Painting, Painting of Loong Soaring in ProsperousTimes, and Auspicious the Year of the Loong created by thecalligraphy and painting artist are used as the core elements,highlighting the unique charm of the oriental aesthetic colors andChinese poetry, painting, and calligraphy.
We have innovatively carried out a series of cultural activities on the 24 solar terms to create our own festival culture IP, using activitiesas carriers to convey the beauty of culture; upgraded the Moutai Fans Carnival and the initiative for cultivating inheritors, leavingexclusive beautiful memories for consumers; carried out a series of activities named "Moutai World Tour with MEI" to promote China'sexcellent traditional culture, and provided a Moutai perspective for the world to understand China.
Cultural Expression of Innovative Activities
Moutai's Global Tour with MEI
From September 19th to 29th, 2023, Moutai's Global Tour with MEI was carried out. We visited Japan, France, and theUnited Kingdom in 11 days and carried out over 40 activities. It was a journey of thousands of miles and we experiencednine time zones. Guided by "MEI", following the three main themes of friendship, culture, and brand, we have deeplyintegrated "A Spirit from China · A Toast to the World" into "mutual learning among different civilizations, the harmonybetween man and nature, cultural integration, industrial solidarity, and pursuing dreams", exploring the new path for Moutaito promote "MEI" to the world, promoting cultural exchanges and mutual learning between China and foreign civilizationsthrough cultural expression, and enhancing the reputation of Chinese brands.
Cultural activities on the 24 solar terms
Moutai Fans Carnival
Inheritors Program
We fully leveraged the roles of Moutai Fans Carnival as acultural communication platform, image display platform,exchange and mutual learning platform, and upscale tasteplatform. It traveled across China with a Moutai cultural feast,reflecting Moutai's views on beauty, that is, "Unique butUnited", respecting and treasuring the beauty of integrationwhile maintaining Moutai's unique beauty. Started fromXinjiang and winded up in Guangdong, 2023 Moutai FansCarnival invited more than 10,000 Moutai fans from di?erentelds and industries throughout the year.
We made more efforts in the training for inheritors of Kweichow Moutai's century-old stores to enhance the inheritors'awareness of the quality, brand, craftsmanship, and cultural core competence of Moutai. We support and encourageinheritors to join in the cause of Moutai and create a better life together. In 2023, a total of four sessions of InheritorsProgram were carried out.In light of the 24 solar terms, we innovatively carried out characteristic cultural activities such as the "Spring Equinox Forum"and "Thanksgiving Activity on Qingming Festival" to promote the development of traditional Chinese culture and Chinesebaijiu culture through cultural innovations.
Addressing Climate ChangeKweichow Moutai responds to the national "carbon peak and carbon neutrality" strategy to tackle the challenges posed by climatechange. Following the framework and recommendations of the International Sustainability Standards Board (ISSB)
, it identies climatechange risks and opportunities from four dimensions: governance, strategy, risk management, as well as metrics and targets. Thisincludes conducting GHG management such as carbon stocktake, exploring response strategies and measures, and collaborating withupstream and downstream enterprises to jointly address climate change risks and build a better home.We prioritize climate change risks as an important issue, integrating them into daily operations and development strategies. We haveestablished an ESG Promotion Commission led by management to coordinate the overall green transformation of the entire value chain,providing reference and examples for the "carbon peak and carbon neutrality" e?orts of the industry.
Kweichow Moutai has proactively identified and adapted to the physical and transitional risks presented by climate change, anddeveloped preventive measures and management methods for different types of potential risks, aiming to achieve comprehensiveidentication, scientic assessment, e?ective prevention, and orderly control, in a bid to enhance our ability to withstand climate changerisks and ensure sustainable and stable operations.
Climate Risk Management
PhysicalRisk
Acute Risk
Extreme events such as heavyrainfall, high temperatures,mudslides, and wildres will a?ectnormal operations due to thelimited tolerance of the humanbody;Damage to infrastructure suchas power supply, water supply,gas supply, and roads will a?ectraw materials supply, logisticsdistribution, and energy supply,leading to cost increases as wellas reduced production capacityand performance indicators.
? Closely monitor weather forecasts, coordinate with localauthorities to promptly obtain information on extremeweather events;? Develop emergency plans for extreme weather events,
and set up a working group on the safety for extremeweather events;
Chronic Risk
Chronic changes in the climateenvironment will lead to changesin the quality and avour of mainingredients such as sorghumand wheat, brewing microbialenvironments, and waterenvironments and quality, therebya?ecting the quality and avour ofthe liquor.
? Continuously monitor reports on the trend of climatewarming;? Carry out basic research on microorganisms, anddetermine the basic characteristics of microorganisms inKweichow Moutai's core production areas;? Conduct conservation research on important rawmaterials involved in the Company's production tounderstand their suitable growth conditions;? Develop emerging water purication technologies such asbank ltration to ensure the safety of brewing water.
Risk TypeRisk DescriptionMitigation Measures
Identication and Response to Climate Change Risks
TransitionRisk
Policy andLegal Risk
The tightening regulations onriver basin environment willrestrict the use of the water in theChishui River.
? Conduct water footprint analysis and targeted researchon reducing water consumption, to reduce the probabilityof impacts on products;? Plan the reserve and processing for key raw materials inadvance.The gradual implementation ofpolicies such as carbon trading,carbon taxes, and environmentaltaxes necessitates the imperativetransition to green and low-carbon practices, imposing higherrequirements on KweichowMoutai's energy-saving andemission reduction e?orts.
? Develop and implement carbon reduction plans;? Introduce green and low-carbon technologies;? Strengthen energy management during productionprocesses;? Implement energy-saving renovations and use low-energyconsumption equipment.Regulators have higherrequirements for the accuracyof environmental data reportedby companies, increasing thepressure and compliance risks ofKweichow Moutai's environmentalinformation statistics.
? Strictly adhere to compliance requirements for informationdisclosure;? Monitor key environmental indicators during productionand operations.
Technical Risk
With the government's strictercontrols on energy consumptionof manufacturers, KweichowMoutai needs to allocate morecosts for energy conservationand consumption reduction in itsproduction and operations.
? Continuously advance the transformation of low-carbonand energy-saving technologies;? Reduce energy input costs through resource recycling;? Choose raw materials and suppliers that are moreenergy-e?cient and environmentally friendly.
Market Risk
The market's preference forgreen brands and products isbecoming increasingly evident,adding pressure to KweichowMoutai's low-carbon productionand operations.
? Reduce carbon emissions based on carbon footprintstocktake throughout the entire lifecycle;? Implement lightweight transformations for packagingmaterials to demonstrate the Company's determination inlow-carbon transition;? Increase the green level of waste resource utilization.
ReputationalRisk
Failure to meet the expectationsof stakeholders regarding climatechange initiatives may result innegative impacts on KweichowMoutai's reputation.
? Strengthen communication with stakeholders to fullyunderstand their demands;? Promote the Company's progress in green and low-carbon initiatives, such as green packaging, sustainableprocurement, and circular economy practices;? Regularly disclose the Company's emission reductionmeasures and their e?ectiveness.
Risk TypeRisk DescriptionMitigation MeasuresIdentication and Response to Climate Change Risks
ISSB is an independent international standard-setting body established at the initiative of the International Financial Reporting Standards (IFRS) Foundation andformally launched at the 26th United Nations Climate Change Conference on November 3, 2021, with the aim of developing sustainability reporting standards in linewith the IFRS.
While identifying and responding to the foregoing climate change risks, we have also been exploring new opportunities arising from it,aiming to integrate climate change into our business development strategy.
ResourceE?ciency
Opportunity to ReduceEnergy Consumption
With continuous introduction of lower-carbon technologies, KweichowMoutai can utilize emerging technologies to optimize energy managementin its operations, improve resource and energy use e?ciency, and reduceoperating costs.
Products andServices
Industry Development
Opportunities
National and consumer attention and favorability towards green productsand green factories are increasing. Kweichow Moutai can leverage this as aselling point for its products, thereby enhancing its market competitiveness.
Opportunity Identication ResultsOpportunity DescriptionClimate Change Opportunities
We collaborated with professional organizations to conduct carbon peak and carbon neutrality research, took the lead indrafting the Greenhouse Gas Calculation Methods and Reporting Standards for Baijiu Manufacturers (currently solicitingopinions from the public), and conducted verication of our GHG emissions from 2018 to 2023, to analyze and summarizeprevious carbon emissions and e?ectiveness of carbon reduction pathways, and proposed targeted improvement measures.In the past two years, the carbon dioxide emissions intensity per unit of industrial output has continuously decreased.
Climate-Related Metrics and Targets
In accordance with the Opinions of the CPC Central Committee and the State Council on Comprehensively and Correctly Implementingthe New Development Concept and Engaging in Carbon Peak and Neutrality and the Action Plan for Carbon Peak by 2030, theCompany has developed the Kweichow Moutai Co., Ltd. Action Plan for Carbon Peak and Neutrality, put forward a plan for pathways toimplementation of its dual-carbon action, and set ambitious carbon control and reduction targets at various stages.
Reduce comprehensiveenergy consumption per unitof industrial output bycompared to 2020Decrease carbon dioxideemissions per unit ofindustrial output bycompared to 2020Decrease carbon dioxideemissions per unit of baseliquor production bycompared to 2020
14%
19%
7%
Short-term Objectives (2024)
Kweichow Moutai's GHG Emissions in 2023
Direct GHG emissions (Scope 1)tCO
e244,895.00-4.40%Direct GHG emissions (Scope 2)tCO
e9,883.00
-82.57%Total GHG emissions (Scope 1, 2)tCO
e254,778.00-18.57%GHG emissions intensity(Scope 1, 2)
tCO
e/1 million units ofindustrial output
2.95-28.40%
IndexUnitYear-on-year variable ratioYear 2023
Calculation basis: GHG emissions are veried by a professional third-party organization in accordance with ISO 14064,IPCC guidelines, the Guidelines for Greenhouse Gas Emissions Calculation Methods and Reporting in Food, Tobacco,Alcoholic Beverage, Beverage and Rened Tea Enterprises (Trial), Greenhouse Gas Calculation System: Code of Conductfor Enterprise Calculation and Reporting, as well as other applicable regulations.
In 2023, both the headquarters and Heyixing Branch purchased green electricity, leading to a signicant reduction in Scope 2 emissions.
Category 1 - Purchased goods & servicesCategory 3 - Energy and fuelCategory 4 - Upstream transportation & distributionCategory 5 - Waste generated in operationsCategory 7 - Employees commutingCategory 9 - Downstream transportation & distributionCategory 12 - Treatment of end-of-life sold products
Indirect GHG
emissions(Scope 3)
76.42%
14.99%
3.74%
1.89%
1.41%
1.16%
0.39%
In 2023, based on environmental footprint analysis methods and referencing national standards such as the Guidelines for GreenhouseGas Emission Calculation and Reporting in Industrial Enterprises and Greenhouse Gases - Product Carbon Emissions - Requirementsand Guidelines for Quantication and Communication, Kweichow Moutai developed a carbon footprint analysis model. Starting from alife cycle assessment, it established a carbon footprint list and conducted assessment and analysis on the carbon footprint of suppliers,raw materials, resources, energy, waste emissions, products, and by-products, etc. involved in production, to promote the developmentof a full-lifecycle, e?cient and low-carbon utilization system.
Product Carbon Footprint
Reduce carbon dioxide emissions per unit product by
2%
compared to 2020.Carbon footprint target for 2024
Lifecycle of the Carbon Footprint of Main products
Raw materialsproductionStage
Share ofCarbonEmissions
50.40%
Manufacturingoperations,including suppliers
Transportation andlogistics operations
Distribution andstore operations
Product Use andDisposal
20.23%0.96%
2.25%26.16%
Green Operations
The Company strictly adheres to relevant laws and regulations such as the Environmental Protection Law of the People's Republicof China and has developed a number of environmental protection management regulations such as the Overall Plan for Building XiJinping's Ecological Civilization Practice Demonstration Base and Building the Company as a Role Model for Environmental Protectionin the Industry, Environmental Protection Compliance Guidelines, Environmental Protection Management Regulations, and Rules onEnvironmental Protection Work Assessment, to ensure the establishment of a sound and comprehensive system of green operations,thereby guaranteeing environmental compliance in production and operations.
The Company has established an environmental management system covering the decision-making, management, and executionlevels. It has developed the Comprehensive Assessment Management Measures, specifying that environmental protection performanceis linked to the remuneration of senior executives and relevant staff, to ensure the implementation of environmental managementresponsibilities at all levels.
Environmental Management System
Decision-making
level
Managementlevel
Execution level
The Ecology and Environmental Protection Committee chaired by the Chairman makes decisions andarrangements regarding all environmental protection management and performance of the Company.
Special committees for green and low-carbon development as well as water environment managementhave been established for specialized management.
The daily management and execution of relevant work are the responsibility of the O?ce of the Ecologyand Environmental Protection Committee, the O?ce of Emergency Response for Environmental Incidentsand its emergency response teams, the O?ce of carbon peak and carbon neutrality Management, and theO?ce of Water Resources Management.
Carbon emissions are calculated based on the carbon dioxide equivalent emitted by each bottle of product at each stage.
The product use and disposal phase refers to the process of product use, waste generation and disposal.
During the reporting period, we did notexperience any signicant environmentalviolations, and our environmentalmanagement system GB/T 24001-2016/ISO 14001:2015 certication was withinthe validity period.
Certicate of EnvironmentalManagement System Certication
The Company developed the Emergency Plan for Sudden Environmental Incidents at Kweichow Moutai Headquarters in accordancewith relevant laws and regulations such as the Environmental Protection Law of the People's Republic of China and EmergencyResponse Law of the People's Republic of China. Emergency drills and specialized training for sudden environmental incidents wereconducted, covering over 50 subsidiaries, shop oors, and organizations.
Emergency Management for Environmental Incidents
To enhance the emergency response capability for sudden environmental incidents, the Company conducted anemergency drill in August 2023, adopting a blind exercise format for practical training. This approach enabled theidentication of problems, improvement of plans, and accumulation of experience, further strengthening the practicality,operability, and e?ectiveness of emergency response.
The Company improved the treatment of wastewater, waste gas, and waste and reduced discharge of pollutants by rmly preventingpollution at the source, strengthening control at key points, and strictly managing the end treatment, to ensure compliance with relevantlaws and regulations for discharge of all types of pollutants.
Calculation: Wastewater discharge intensity = Wastewater discharge volume / Unit industrial output
The Company strictly follows relevant laws and regulations such as the Water Pollution Prevention and Control Law of the People'sRepublic of China. With the principles of grading and classication, classied treatment, and resource utilization, the Company hascarried out systematic construction and upgrading of the factory area's pipeline network and sewage treatment facilities. This hasresulted in a daily wastewater treatment capacity of 23,000 tons. In the meantime, plans are underway to construct the ChineseEcological Wetland to purify and reuse the treated "tailwater" to reduce the impact on the Chishui River, ensuring e?ective pollutionprevention and control e?orts. Research projects such as production wastewater characteristic analysis, biological amplication, andcomprehensive utilization of high-concentration sewage have been conducted. Also, e?orts have been made to develop regulationsrelating to the treatment process, equipment management, and operational supervision of production wastewater from producing theJiang-avor Baijiu.
Emissions Management
Wastewater discharge volume10,000 tons215.17-4.10%Wastewater discharge intensity
10,000 tons/1 million units ofindustrial output
0.0025-16.67%
IndexUnitYear-on-year variable ratioYear 2023
Wastewater Discharge
Emergency drill
Wastewater Discharge Management
Kweichow Moutai's emergency drill for sudden environmental incidents in 2023
The Company has been optimizing its environment process management model. Through channels such as telephone interviews andon-site exchanges, it has gathered the expectations of stakeholders. From the dimensions - quantity, speed, quality, cost-e?ectiveness,harmony, and innovation, it has put forward 24 main requirements of stakeholders for environment management. With the tool - KeySuccess Factors (KSF) matrix, it has identied seven key requirements for the environment management process.
Environment Process Management
2. Enhance pollution control
Improve the environmentmanagement systemReduce pollutant emissions
1. Strengthen brewing
ecological protection
3. Promote e?cient utilization
of resources and energy
4. Promote green and low-carbon
developmentReduce GHG emissions
5. Green tech innovation
New technologies, processes,materials and equipment
6. Improve the environment
monitoring systemBuild a data management platformfor environment monitoring
7. Enhance the modern
environmental governance systemEnsure legality and complianceTimely resolution of environmentalissuesTimely elimination of environmentalhazards
Enhance the protection of brewing watersourcesImprove air qualityMaintain the stability of the micro-ecologyin the production areaAssist in the green protection of the basin
Increase the energy utilization rateIncrease the resource utilization rateFacilitate the recycling and utilizationof waste materials
Management of Exhaust Emissions
Strengthen the standardized management of dust from construction projects and roadwayswithin the Moutai Baijiu Geographical Indication Protection Area, to strictly control the emissionsof air pollutants from the source such as inhalable particles, lung-damaging particles, andozone.Dust generated fromconstruction andoperation sites
The Company's exhaust emissions primarily consist of sulfur dioxide and nitrogen oxides generated during the production process. Weadhere to the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, and have equipped eachemission point with comprehensive environmental protection facilities to ensure stable compliance with emission standards for varioustypes of exhausts. In addition, nitrogen oxides, carbon monoxide, ozone, and other indicators have been monitored at ve air qualitymonitoring stations within the plant area. In 2023, the emission rates and concentrations of various exhausts from the Company met thecorresponding limit requirements set forth in the Emissions Standards for Air Pollutants (GB16297-1996).
The Company has been using natural gas, which is clean energy, as fuel for boilers, andinstalled continuous emissions monitoring systems for flue gas in boiler rooms to monitornitrogen oxide emissions in real time. We are piloting the installation of denitrication facilities tosubstantially reduce emissions of nitrogen oxides.
Promote green transportation by advocating for employees to use public transportation forpersonal travel, encouraging the use of new energy vehicles, promoting the "3+3" plan for newenergy vehicles in the factory area, and improving the infrastructure for new energy vehiclesin the factory area. In 2023, the proportion of new energy vehicles in the factory area reached
14.3%, an increase of 5.5% from a year earlier.
A negative pressure pipeline conveying system has been added, and improvements have beenmade to the daqu-making system. As a result, the concentration of dust in the daqu-makingproduction room was e?ectively reduced.
Nitrogen oxidesgenerated fromboiler operations
Vehicle exhaust
emissions
Daqu-making dust
We have strictly followed relevant laws and regulations including the Law of the People's Republic of China on the Prevention andControl of Environmental Pollution by Solid Waste, and developed the Solid Waste Control Procedure, Regulations on the Managementof Waste Materials Recycling, and Regulations on the Management of Hazardous Waste, based on the principle of resource utilization,green development, ecological development, standardization, and reduction, to strengthen the management of solid waste. Guidedby ecological industrialization and industrial ecology, we have standardized the disposal of hazardous waste, significantly reducedconstruction and kitchen waste, etc. and raised the awareness of all sta? members for environmental protection.
Management of Waste Discharge
Density of total waste
Ton per 100 million yuan ofindustrial output
541.43-8.04%Utilization rate/100%/
IndexUnitYear-on-year variable ratioYear 2023
Waste Emissions
The Company has increased resource utilization efficiency through measures such as optimizing manufacturing processes andupgrading equipment, to integrate the concept of energy conservation and emission reduction into all aspects of its production andoperations. During the reporting period, we have been optimizing energy, water resources, and packaging material management, topromote the optimization of resources allocation, and sustainable production.We have strictly adhered to relevant laws and regulations such as Law of the People's Republic of China on Energy Conservation,developed the Energy Management Manual, Energy Operation Management Regulations, and Energy Data Management Regulations,etc., and followed the principle of law-based management, technological progress, consumption reduction and efficiency increase,effective supervision, and sustainable development, to strengthen energy management, ensuring that the GB/T 23331-2020/ISO50001:2018 Energy Management System certication remains valid. We have established an intelligent energy metering platform tohave online monitoring and automatic analysis of equipment and energy consumption data within the factory area, and developed annualenergy targets and metrics that were broken down into various stages of production and operations, to manage energy consumption,as part of our e?orts to serve as a role model for resource conservation. We have given priority to suppliers of environmentally friendlyand resource-saving materials, explored and practiced low-carbon emissions and clean production, and promoted the sustainabledevelopment of the value chain. In 2023, we optimized our energy structure by purchasing green electricity to build a new type ofelectricity system, purchasing a total of 91.702 million kWh of green electricity, achieving the carbon reduction goal of full coverage ofgreen electricity for both the core production area and the plant of Heyixing Branch.
Energy Management
Kweichow Moutai's Energy-saving Measures in Various StagesManufacturing and operationsTransportation and logistics
Distribution centers/store operations
Implement green construction to save materials, water, energy,and land.Improve space utilization through rational warehouse layoutplanning, and adopt an intelligent warehouse managementsystem to achieve precise inventory positioning and efficientmanagement, further reducing storage costs and minimizing theoperation routes of handling equipment.Use advanced warehouse equipment to automate storage,conveyance, and sorting, highlighting environmental protectionconcepts, saving energy, and jointly building a "greenwarehouse".Use digital and intelligent means to dispatch transportationvehicles, and implement centralized management and planning,to reduce the number of trips and waiting time for motor vehicles,improve the e?ciency and quality of the supply chain, and reduceenergy consumption and carbon emissions.
Energy-saving and Emissions Reduction Plan
Implemented a pilot project for the recycling and reuse of Moutaiglass bottles within Guizhou Province;All 30 freight towing vehicles purchased in 2023 were selectedto meet the National VI (B) emission standard, and in thetransportation of distiller's grains, low-carbon and environmentallyfriendly clean energy transport vehicles were put into operationbased on the "not less than 20%" standard, taking an importantstep towards green transformation;After the completion and use of the Shuanglong LogisticsPark, big data and Internet of Things technologies have beenapplied to collect and monitor the energy consumption of thepark in real time and conduct threshold analysis and anomalyalarms, to achieve visual, diagnosable, and controllable energyconsumption management, and promote energy conservationand emission reduction.
Measures and Results in 2023
Develop carbon emission management systems and documents at the design, procurement, and production operationcontrol levels, and coordinate the implementation and operation of the Company's resource allocation system.Conduct feasibility studies on the application of electrode boilers.Apply new technologies such as CO
heat pumps, high-temperature heat pumps, and flash evaporation systemsto recover waste heat and air energy resources within the plant to produce steam, gradually replacing natural gasconsumption in boiler rooms and energy stations.Explore long-term green electricity procurement agreements with power trading centers to ensure the use of greenelectricity in the plant area.Expand the Company's electricity load capacity to meet future energy transformation needs.Implement pilot projects for boiler ue gas waste heat recovery and utilization, to improve the heat exchange e?ect oftail ue gas heat exchangers.Upgrade the steam supply network in 20 shop floors, and build an intelligent steam supply network managementsystem, to reduce steam supply losses.Phase out high-energy-consuming electromechanical equipment across all areas and replace them with new energy-saving electromechanical equipment to reduce energy consumption and losses.
Energy-saving and Emissions Reduction Plan
In 2023, both the Kweichow Moutai plant and the Heyixing plant achieved full coverage of green electricity;Energy-saving upgrades were implemented for primary pump station equipment, increasing water pumping e?ciencyby 30%;A waste heat recovery project was conducted during the distillation system's cooling process, with potential to utilize
60% of the waste heat from the distillation system upon full implementation;A photovoltaic power generation pilot project was initiated with an installed capacity of 84.8 kilovolt-amperes.
Measures and Results in 2023
Enhance employees' environmental awarenessthrough holding environmental protectionmeetings, conducting environmental lecturesand training sessions, and playing promotionalvideos through multimedia.Organize employees to ll out questionnaires,sign the initiative - Energy Conservation andCarbon Reduction, Green Developmentand Environmental Protection, and guideemployees to practice a lifestyle and workapproach of energy conservation, emissionsreduction, green and low-carbon development.
Energy-saving and Emissions Reduction Plan
Distribution centers and stores conductenvironmental-related training as required bythe Company, with nearly 200 establishmentsimplementing energy-saving and emissionreduction plans, using energy-efficientlighting xtures, and setting air conditioningtemperatures reasonably.The iMoutai platform adopts the principle ofnearby appointment and pickup to reducethe transportation distance for delivery fromstores.
Measures and Results in 2023
Non-renewable energyconsumption
Tons of coal equivalent144,173.82-8.05%Renewable energyconsumption
Tons of coal equivalent11,270.18108.41%Comprehensive energyconsumption
Tons of coal equivalent155,444.00-4.16%Comprehensive energyconsumption intensity
Tce/1 million units of
industrial output
1.80-15.89%
IndexUnitYear 2023Year-on-year variable ratio
Energy Consumption
The Company has improved the Implementation Plan for Product Packaging Materials for Green Supply Chains, Finished Liquor OuterPackaging Materials Recycling Management System, and Regulations on the Management of Waste Materials Recycling, promoted thecircular economy, advanced green processes, implemented the Green Transformation Project for Product Outer Packaging Design, andestablished green packaging design standards and blacklists for materials selection, etc., to build a green supply chain.
Packaging Materials Management
Packaging MaterialsManagement Measures
Reduction
It is required to consider reducing material consumption in all new product designs without compromising product quality anduser experience.
Calculate the water and carbon footprint of the entire supply chain based on products, and analyze the water and energyconsumption in the packaging material production and supply processes to identify key energy-saving, water-saving andcarbon reduction processes.Launch the bottle lightweighting research and development project.
Management Measures
Plan for 2024
Reduced the variety of packaging materials: For certain products such as Feitian Moutai 53% and 43% vol, new types ofanti-counterfeiting caps were introduced, and packaging materials such as ordinary identiers and RFID box labels werediscontinued. The number of required packaging materials was reduced from 15 to 13, and the packaging volume ofaged Moutai Baijiu was reduced.Reduced use of paper products: For new products such as the Moutai (Treasure) 53% vol 500ml, Moutai (Guimao Yearof the Rabbit) 53% vol 500ml, and Moutai (24 Solar Terms) 53% vol 500ml, front and back labels were replaced withembossed bottles.Reduced amount of di?cult-to-degrade: The velvet fabric was removed from the Moutai (Xunfeng) 53% vol 375ml,leading to an annual reduction of 34.41 tons of velvet fabric.
Progress in 2023In 2023, Kweichow Moutai adjusted the types of packaging materials for several existing products:
Green development
The Company revised and issued the New Product Development Management Regulations, specifying the priority of usingrecyclable, biodegradable, and environmentally friendly materials for packaging; and developed the Packaging MaterialTechnology Blacklist (Environmental Protection), List of Restricted and Prohibited Packaging Materials, and Negative Listof Packaging Materials for New Product Development, prohibiting and restricting the use of materials with quality risks andenvironmental pollution.
Management Measures
Progress in 2023Alternatives to di?cult-to-degrade materials: In 2023, the Company replaced pearl cotton with bamboo pulp paper traysin the Moutai (Xunfeng) 53% vol 375ml; and strictly prohibited the proportion of using ceramic bottles for new productsExploring the application of green materials: In 2023, the Company initiated 14 research and development projects ingreen environmental protection and new materials, including 10 projects in the bottle eld, 3 projects in the cap eld, and1 project in the printing eld.Pilot programme for localizing packaging material recycling.Application of bio-based green materials.Exploring the recycling of bio-based green materials such as pit-bottom water and distillers' grains.Plan for 2024
The Company advocates environmental protection concepts and has proactively proposed theuse of glass products in product packaging. This initiative supports suppliers in carrying outprojects for recycling and reprocessing broken glass. It is estimated that 24-36 million waste glassbottles will be processed annually, greatly reducing the environmental pressure caused by wastedischarge.
Recycling and reprocessing of broken glass
Since the end of 2022, the Company has initiated the Kweichow Moutai Glass Bottle Recycling andReuse Pilot Implementation Plan. As of the end of developing this report, bottle recycling was mainlypiloted in Guizhou Province, with 525,547 bottles collected.
Recycling of recyclable packaging materials such as bottles andcardboard boxes through Kweichow Moutai's logistics
The Company initiated a research project to use biodegradable polylactic acid (PLA) material toweave red ribbons.By using new environmentally friendly ink and innovatively optimizing the spray coating process,the environmental friendliness, anti-oxidation, and stability of the ink on the paper packaging areimproved.We have been actively exploring bio-based materials and studying the feasibility of plasticreduction.
Research on green packaging materials
Consumption of Packaging Materials
63,440
Glass bottles
tons28,304Color cardboard boxes
tons
10,136Cardboard boxes
tons112,618
Total
tons7,243
Ceramic bottles
tons
Ribbons
tons1,185
Metal bottle caps
tons
2,234
Plastic bottle caps
tons
Green O?ce
Moutai advocates for employees to save electricity and water, practice low-carbon mobility and other low carbon behaviors, andcontinuously increase awareness of energy conservation and environmental protection to create a better ecological environment.
Promote the development and use of online information management platforms to acceleratethe transition to paperless operations.Papersaving
Develop reasonable electricity usage plans, include electricity usage in the cost assessmentof each organization's production, and raise the awareness of employees for energyconservation.Electricitysaving
Use reclaimed water for irrigating green belts in the industrial park to reduce the consumptionof fresh water for landscaping and raise the awareness of employees for water conservation.Watersaving
Implement odd-even license plate restrictions for vehicles and promote the use of publictransportation.Low-carbontravel
In 2023, the Company continued to carry out publicitycampaigns such as "opposing waste", "cherishing food",and "saving meals", covering more than 20,000 people inthe factory area. They were aimed at guiding employees tobe thrifty, save resources, and live a green life.
Conservation Poster
Kweichow Moutai organized conservation awareness training
Water Resource ManagementThe Company strictly adheres to relevant laws and regulations such as the Water Pollution Prevention and Control Law of the People'sRepublic of China and Water Law of the People's Republic of China. Water resource management is integrated into the overallecological and environmental management framework, with continuous efforts in water-saving process upgrades and innovations,leading to continuous rise in water-saving benets and water resource management. We have developed the Supplier SustainableDevelopment Implementation Method, clarifying the requirements for suppliers to implement water resource protection and recycling.We have collaborated with suppliers to explore water-saving optimization measures, assist in improving water use e?ciency, and striveto achieve sustainable water resource utilization throughout the lifecycle of the industrial chain.The Company has implemented quota management for water consumption in all aspects of production and operations. In 2023, thewater consumption at all stages, both in production and non-production, was analyzed to identify water-saving potential. Continuousoptimization of water consumption targets and water-saving benefits was pursued. Targets and implementation pathways wereestablished for subsequent total water intake, production water quota, and water consumption per unit of product.
The water-saving target for 2023 in Kweichow Moutai's production area is a reduction of
5%
, with an actual reduction of
7.5%
;The water-saving target for the production area of the Heyixing Branch is a reduction of2%
, with an actual reduction of
2.5%
.
Overall water-saving targets:
Productionsegment
Non-productionsegment
Independent laying of domestic andgreening pipelines, with separate meteringImplementation of pipeline reconstruction tocontrol pipeline leakageBoiler water treatment system renovationTreatment and reuse of tailwaterUse of reclaimed water for greening andsanitation, etc.Replacement of water-saving appliances,improvement of water usage methods, andreduction of end water consumption
Water saved:
about232,000m?
Water saved:
about167,000m?
Kweichow Moutai's Water-saving Measures in Various SegmentsWater-saving SegmentWater-saving measuresAchievements in 2023
To conserve water and increase the utilization of water resources, the Company initiated a pilot project for the reuse ofreclaimed water. The project was completed and put into operation in April 2023, with one production plant selected toreplace fresh water with reclaimed water. It was used for purposes including toilets, garages, landscaping, and cleaning,resulting in an average monthly saving of over 700 cubic meters of fresh water.
The Company has been promoting the concept of water conservation and supporting suppliers in implementing water-saving reforms to promote the e?cient use of water resources. Hunan New Century Ceramics Co., Ltd. implementedrainwater and sewage diversion during the overall construction process, e?ectively reducing both the discharge andtreatment of wastewater. In the meantime, they constructed an advanced wastewater treatment plant capable oftreating up to 1,000 cubic meters of wastewater per day with physical and chemical methods such as sedimentationand coagulation to remove pollutants from wastewater. Guoci Yong Feng Yuan achieved "zero discharge" of productionwastewater by optimizing production processes and equipment.
Reclaimed water reuse pilot project
Kweichow Moutai called for suppliers to conduct water conservation renovations
A pilot project for the renovation of boiler watertreatment processes was initiated, applying thetechnology - "reverse osmosis + concentrated waterreuse". The boiler discharge rate decreased from33% to 9%.In 2024, the Company will further promote the pilotproject of reusing reclaimed water and expand thescope of boiler water treatment process upgrades.
Boiler water treatment process renovation
The boiler water treatment shop oor after renovation
Water Pressure Assessment
Water Footprint Calculation
The Company conducted an assessment of the water ecological capacity in the Chishui River Basin, investigating the water qualityand ecosystem conditions within the basin. We established a SWAT model for dynamic analysis of water quality and microorganisms.Through longitudinal assessment of indicators such as COD and DOC in the water, we identified the impact and risks of factoryproduction on the water environment and developed targeted solutions.
The Company has been exploring alternatives to water sources and water resource recycling. We replaced water with residual crudebaijiu in production to produce pit bottom, assessed the water environment of the Chishui River and analyzed the impact of di?erentwater extraction methods on water quality. In 2023, we collaborated with research institutions to conduct water footprint assessments onour main products.
Water Footprint of Moutai Baijiu
Raw Materials Acquisition StageProduction Process Stage
Raw
materials
Packagingmaterials
Sorghum
Wheat
Paper products (cardboardboxes, and wine boxes, etc.)Glass products (wine bottles,and wine glasses)
Primaryproduction
Crude Baijiu
makingDaqu makingCrude Baijiustorage rooms
Auxiliaryproduction
BoilerEnergy station
Wastewatertreatment
Secondaryproduction
PrimaryproductionSecondaryproduction
Production plantProduction plantbath
PackagingBlendingCanteen
Workshop o?cecafeteria
Water Resource Management Data
Reuse of reclaimed water10,000 cubic meters
19.7019.142.92%Extraction of freshwater10,000 cubic meters658.50701.95-6.19%Freshwater extraction intensity
10,000 cubic meters/1 millionunits of industrial output
0.00790.0092-14.13%Total water extraction
10,000 cubic meters658.50701.95-6.19%Water recycling rate
/87.07%82.05%5.02%Consumption of freshwater10,000 cubic meters847.96892.11-4.95%Freshwater consumption intensity
10,000 Cubic meter/1 millionunits of industrial output
0.00980.0117-16.24%Total water resource consumption10,000 cubic meters847.96892.11-4.95%Water resource consumptiondensity
10,000 cubic meters/1 millionunits of industrial output
0.00980.0117-16.24%
IndexUnitYear 2022
Year-on-year
variable ratioYear 2023
Calculation method: Freshwater extraction volume + alternative water extraction volume
Calculation method: (Recycled volume / (Recycled volume + water extraction volume)) * 100%
Finishedproduct
Crudebaijiu
Protecting the Environment
Ecological Development IndexWe have established an index system for ecological development to measure the overall level of green development of the Company.This system evaluates from four aspects: natural ecosystem, industrial ecosystem, commercial ecosystem, and ecological civilization,across 11 dimensions and 39 levels. We have also conducted performance indicators improvement analysis to provide guidance for theCompany's green development e?orts. In 2023. there's 4.63% year-on-year increase in Ecological Development Index.
The Company rmly centers around the goal - "Ecological Moutai", adheres to the basic principle of "business built on environmentalprotection", promotes ecological industrialization and industrial ecosystem, conducts biodiversity conservation, and water environmentprotection and restoration, strengthens the conservation of the Chishui River water source, land and water conservation, andcontinuously enhances ecological advantages.
Target ValueActual Value
Ecological
Development Index
Biodiversity Conservation
In 2023, Kweichow Moutai conducted research on the establishmentof a vegetation ecosystem and coordinated protection of biodiversity inthe core production area of Moutai Baijiu. The green spaces in the coreproduction area were divided into park green spaces, protective greenspaces, plaza green spaces, and a?liated green spaces. There are over400 plant species, and positive and negative lists of various types oftrees, shrubs, and owering plants in the region conducive to the growthand reproduction of Moutai brewing microorganisms and climate. Inaddition, through a survey of plant diversity in the core production area, itwas found that the plant species in the production area primarily includedferns, gymnosperms, and angiosperms, totaling 455 species belongingto 353 genera from 138 families (including cultivated species).At the same time, we have continued to protect microbial diversity, and developed a framework for a high-throughput sequencingdatabase of microorganisms in the brewing environment, as well as a key technology and an equipment for microbial detection. And 1,946microorganisms were discovered in the Moutai brewing process and environment, including 1,063 bacteria and 883 fungi.Hundreds of Thousands of Eco-actions
The Company conducted an environmental protection activity with the title "Hundreds, Thousands, Millions: Eco Action", andhas established a regular mechanism to annually organize environmental protection exhibitions, voluntary tree planting, specialenvironmental protection inspections and rectications, and environmental protection training around the themes - "research and trainingin hundreds of elds, thousands of people planting trees, and tens of thousands of people conducting inspections". This has helpedcreate a strong atmosphere of "everyone advocating and engaging in environmental protection".
In February 2023, Kweichow Moutai held the event under the theme – "Research and Training on A Hundred Fields"to promote green development. The Company showcased achievements such as the "Two Mountains" base andbiodiversity through exhibitions, promoting the concept of green development to further enhance overall awareness.In addition, we organized specialized institutions to conduct thematic training on "The Theory and Practice of GreenMountains and Waters as Valuable as Mountains of Gold and Silver" and "Green Development and EnvironmentalManagement", covering 800 participants. They learned about environmental policies, development trends,implementation pathways, and other knowledge to help enhance ecological environmental governance capabilities.
"Research and Training on 100 Fields" - Working together for green development
A visit to an environmental protection exhibitionThe event - "Research and Training on A Hundred
Fields"
62.95
2021
68.83
2022
72.02
2023
EcologicalCivilization
CleanProduction4 indicators
EnvironmentalGovernance4 indicators
Establishment ofEcological Culture4 indicators
Establishment of EcologicalCivilization System 10 indicators
ResourceConservation3 indicators
Green
Technology2 indicators
ResourcesIntegration1 indicator
EnvironmentalQuality5 indicators
Micro-ecologicalStability2 indicators
Driving LocalEconomicDevelopment
2 indicatorsIntegration ofIndustrial Chains2 indicators
IndustrialEcosystem
CommercialEcosystem
NaturalEcosystem
EcologicalDevelopmentIndicators for 2023
To strengthen the foundation for beautiful economic development and enhance the comprehensive protection of heritage sites, Kweichow Moutaihas organized archaeological excavations of the "Origin of Moutai Baijiu " brewing industrial site and promoted the revitalization of cultural relicsrelated to the "Origin of Moutai Baijiu". Through national intangible cultural heritage such as the "Moutai Baijiu Making Technique" and nationalinheritors, we have promoted Moutai's concept of ecological culture, demonstrated the ecological charm of the Chinese liquor culture, and facilitatedthe transformation of ecological advantages into development advantages, to achieve a win-win situation for the development of the tourism industry,cultural brand development, and environmental protection.
Fostering green ecology with cultural tourism - Creating a fusion development model of "Baijiu, culture, andtourism through the leadership of cultural branding
Kweichow Moutai has been leveraging the advantages of ecological agriculture in assisted areas to support rural revitalization and regional greendevelopment. We have driven local ecological agriculture through our own demonstration bases, ensuring the supply of raw materials for our industrialchain while creating employment opportunities for local farmers. In addition, we have provided farmers with sustainable and diversied sources ofincome through models such as land rental, service outsourcing, and prot sharing, integrated the entire industrial chain from planting to productionto sales, and incorporated local characteristic industries into our own industrial chain. This has helped foster the development of distinctive regionalecological brands and enhance product added value, to establish a development model where ecology and growth resonate in harmony.
Boosting agriculture with green initiatives - Empowering characteristic resources to create models for ruralrevitalization through ecological agriculture
Kweichow Moutai has upheld the core strategic thinking of "stability at the top, technological advancement, and talent development", and has exploredthe innovative institutional mechanism model of "institutional integration + technological innovation + talent development" in coordination. In terms ofmanagement systems, it has established an integrated ecological environment management system that combines "establishing top-level systems,setting mid-level assessments, and formulating bottom-level procedures", aiming to promote high-quality development through high-level ecologicalenvironment protection and focus on conducting high-standard ecological environment protection in the Chishui River Basin (Renhuai section), tocreate a model for environmental protection in the Chishui River Basin and the high-quality development of Baijiu brewing.
Empowering development with innovative systems and mechanisms - Holding the key to institutional mechanisminnovation to ensure the transformation of "Two Mountains"
Kweichow Moutai has adopted a holistic and systematic approach to developing a comprehensive protection plan for "mountains, water, forests,land, the river, and microorganisms". Through multiple measures, it has been promoting the ecological protection and restoration of the ChishuiRiver Basin (Renhuai section). It has conducted ve major projects: increase of ecological water utilization, improvement of air quality, land pollutioncontrol, protection of microorganism, and ecosystem balance. Transitioning from standard emissions management to target management based onthe ecological health of the river, it has explored paths for harmonious coexistence between humans and nature. Through the green developmentof the industry, it has promoted the green and low-carbon transformation of the economy and society, and accelerated the green transformation andupgrading of the Baijiu industry, and optimized green, clean, and e?cient brewing production processes, thereby achieving symbiotic and mutuallybenecial relationships between ecology and economy.
Turning green goals into invaluable assets - A development model of coordination between a community of sharedfuture of "mountains, water, forests, land, the river, and microorganisms" and the green industry
We have been proceeding with the ecological development index for quality improvement and efficiency enhancement for microbial resourcesconservation and the Baijiu production industry in coordination. We have established an ecological development index and indicator system tomeasure the overall level of green development of the Company, comprehensively evaluating from four aspects: natural ecosystem, industrialecosystem, commercial ecosystem, and ecological civilization, across 11 dimensions and 39 aspects. We have also conducted performance indicatorimprovement analysis to provide direction for the Company's green development e?orts.We have been proceeding with the ecological developmentindex for quality improvement and e?ciency enhancement for microbial resources conservation and the Baijiu production industry in coordination.We have established an ecological development index and indicator system to measure the overall level of green development of the Company,comprehensively evaluating from four aspects: natural ecosystem, industrial ecosystem, commercial ecosystem, and ecological civilization, across11 dimensions and 39 aspects. We have also conducted performance indicator improvement analysis to provide direction for the Company's greendevelopment efforts. The Company is based on the fundamental concept of "environmental protection for the enterprise," promoting ecologicalindustrialization and industrial ecosystem. We have carried out biodiversity conservation and water environment protection and restoration,strengthened the Chishui River water source and land conservation, and continuously enhanced our ecological advantages.
Protecting microorganisms and enhancing quality and e?ciency - Collaboratively promoting the protection ofmicroorganisms and the quality and e?ciency improvement of the liquor industry
Development of "Two Mountains"
The Company relies on the geographical indication protection area ofMoutai Baijiu to establish the Guizhou Chishui River Basin Moutai BaijiuGeographical Indication Protection Ecological Demonstration Zone(hereinafter referred to as the "demonstration zone"), explored the modelof "ecology + culture" that features two-way transformation of "clear watersand green mountains" and "mountains of gold and silver", and put forwardfive typical transformation paths: "turning greenery into gold, protectingmicroorganisms and enhancing e?ciency, greening with culture, boostingagriculture with green initiatives, and empowering creation".In October 2023, we were awarded the national honor – "InnovationBase for Practicing the Concept of lucid waters and lush mountains areinvaluable assets".
Kweichow Moutai was awarded the title - ABase of Innovation for Building Two Mountains
Building the "Three Life Spaces"
The Company, based on the "Three Life Spaces", has initiated a special environmental greening plan for the core production area. Weplanned the park green spaces, protective green spaces, plaza green spaces, and a?liated green spaces in the region in a reasonablemanner, and promoted ecological restoration and enhancement projects such as greening around production facilities in the coreproduction area, the Zhonghua Ecological Wetland, and the Ecological Protection Forest along the Tanchang-Maotai Express. Thisincluded increasing the planting area of green spaces, increasing the green coverage of the park, and building a green ecological space.
The event - "Thousands of People Planting Trees"
In February 2023, Kweichow Moutai launched the NewYear tree planting activity. Company executives ledteams to the site and planted trees together with 2,300employees, embodying ecological concepts throughpractical actions. In this tree planting event, morethan 7,500 saplings including ligustrum compactum,osmanthus fragrans, red maple, and bougainvillea wereplanted. As of now, we have greened an area of over240,000 m
by planting trees as part of our obligations.
"Thousands of People Planting Trees" - Building a green barrier together
Troubleshooting of environmental hazards
In February 2023, the Company mobilized employeesto conduct thorough inspections on environmentalprotection, jointly exploring ecological blind spots. Thefocus was on comprehensive inspections of variousareas within the plant, including pipes, ditches, wells,ponds, walls, and relevant equipment and facilities. Allpotential factors contributing to environmental pollutionwere carefully identified, and problems were promptlydiscovered and resolved, ensuring clear understandingand effective improvement in our environmentalprotection work.
"Tens of Thousands of People Conducting Inspections": Safeguarding theecological bottom line
Creating a Happy Moutai TogetherThe Company adheres to the talent concept that employees are the most valuable asset, and talents are the most precious resource.We have established a comprehensive recruitment, development, remuneration, and welfare system throughout the entire talent chain toattract, cultivate, employ, and retain talents. We aim to create an equal and inclusive workplace while safeguarding occupational healthand safety.We implemented the "Happiness at Moutai" 2023 Plan for the Pilot Programme of Improving the Workforce's Life. Focusing on sixaspects including better work environment and occupational health management, we have implemented our programme - "Happiness atMoutai" by continually safeguarding the rights and interests of our employees and raising their sense of accomplishment and happiness.
We follow the people-oriented concept by safeguarding the rights and interests of its employees, improving its remuneration and benetssystem, and establishing a broad platform for talent development, to build a diverse, equitable, and inclusive working environment.Compliance and Equality
We strictly comply with laws and regulations such as the Labor Law and the Labor Contract Law, improving systems such as theEmployee Recruitment Management Measures, and enters into, performs, modifies, terminates, or rescinds labor contracts withemployees in accordance with the law. We adhere to equal pay for equal work, respect employee rights, avoid discrimination based ongeography, ethnicity, religion, pregnancy, etc., in all aspects, and eliminate any form of forced labor and child labor recruitment.
We have refined the Measures for Managing the Workers' Congress and Measures for Managing the Workers' Congress at theGrassroots Level, etc., and leveraged the role of the Workers' Congress in democratic management and oversight, to safeguard therights of our employees to be informed, participate, and supervise. Each year, we convene the Workers' Congress and holds jointmeetings of team leads on a regular basis to discuss major issues concerning the immediate interests of the employees. In 2023, 97proposals were collected, classied, handled with continuous follow-up, and supervised by members of the Company's leadership team.They were all resolved in 2023.We adhere to the communication philosophy of "equality, candor, and mutual trust", and have improved bidirectional communicationmechanisms, and created an equal and inclusive working environment. In 2023, we continued to understand employee demands, collectsuggestions from employees and properly handle them through platforms such as the "Colleague Bar", "Direct Line to the Chairman",eld visits and workshops, and surveys. Among them, we have received more than 600 opinions and suggestions from employeesthrough talks and questionnaires; we have researched and handled more than 400 items of "Colleagues' Bar" concerning canteenmanagement, wages and bonuses, operation of o?cial vehicles, vehicle parking, social security benets and other matters of immediateinterest to employees; we have replied to and handled 45 matters related to employees' welfare and treatment on the platform of "DirectLine to the Chairman".
Compliance-based Employment
Democratic Management
Employee Count for 2023
MaleFemale
22,35710,945
Number of employees by gender (Unit: people)
30 and below31 to 5051 and above
10,483
,
Number of employees by age (Unit: people)Number of Employees
33,302
21,410
We have established a leading group for talent work under the Party Committee to coordinate talent growth and development e?orts.We have deepened the talent development system - "Eight steps to cultivate craftsmen" and the talent development programme – "Fourplans" for talent training, to continuously improve the employee training and promotion system, and enhance talent equivalent density. In2023, our talent equivalent density of technical skill
reached 0.96.
To attain the Company's strategic objectives and realize the value of employees' career, we established ve major career developmentpaths: managerial, functional, technical, skill, and marketing, and provided a well-established training system and incentive plan tosupport the career development of all employees.Talent Development
Induction training - "Into the furnace"Job training - "Forging"Skills recognition - "Smelting"Master-apprentice - "Hammering"
"Eight steps to cultivate craftsmen" talent cultivation system
Backbone cultivation - "Rening"Excellent shift (team) lead- "Quenching"Moutai Craftsman - "Sublimation"Technical Position - "Hardened into steel"
Growth and Development
"Chief Plan" for leading talents: Cultivate leading talents who are loyal to the Company'sstrategy, capable of leading the future research and development of the Company, and adeptat exquisite brewing techniques."Inheritance Plan" for brewing talents: Cultivate a team of outstanding backup talents in keyareas such as brewing, tasting, and liquor body design."Outstanding Youth Plan" for young talents: Cultivate business management talents with aglobal strategic vision, spirit of market exploration, innovative management capabilities, and asense of social responsibility."Elite Plan" for business management talents: Cultivate an outstanding team of backup talentsin fields such as natural sciences, engineering technology, and digital informatization fortechnological innovation.
"Four plans" for talent training
The equivalent density of technical skills is a characteristic index of a company, which refers tothe weighted value of education, professional title and skill level/number of employees.
We rely on the "four-in-one" education and training system, making full use of resources such as the Employee Training School,Moutai Academy, and online learning platforms, to provide categorized teaching and facilitate employee learning and growth. We haveformulated a series of systems such as Occupational Skill Level Recognition and Appointment Management Measures and Professionaland Technical Personnel Title Evaluation and Appointment Management Measures, to establish pathways for employees to improvetheir education and professional qualications.In the meantime, we have encouraged mass innovation activities such as quality control (QC), minor improvements, rational proposals,and innovation workshops, etc., to stimulate vitality among employees.
With the value chain analysis method, we have established 338 positions, horizontally divided into 5 major sequences and 30 sub-sequences. Among them, a separate technical and skills sequence was set up to better cultivate a specialized brewing team. The salessequence was delegated to sales subsidiaries for upgraded management. We also ensured the integration of modules such as salary,performance, and job levels, to promote employee career development.
We developed the Trial Plan for the Evaluation of Master Technicians, selecting the rst wave of 10 master technicians atKweichow Moutai.Our competition "Versatile Craftsman" has been approved by the provincial Department of Human Resources and SocialSecurity and upgraded to a provincial second-class competition, with 12 versatile craftsmen selected.Ren Jinsu Skills Master Workshop was registered with the Ministry of Human Resources and Social Security as anational skills master workshop.An application has been submitted to the provincial Department of Human Resources and Social Security to add twonew independently accredited occupations (job types), bringing the total to 21, basically achieving the full coverage ofskills level accreditation.In 2023, 256 employees completed academic credentials authentication and registration.
Enhancing Skills Level Accreditation and Promoting "Certication for All Employees"
Training to Enhance the Overall Development of Backup Talents Specializing in Baijiu Tasting Born after 1992
Some Achievements of the "Eight steps to cultivate craftsmen"
Job training: Over 22,000 sessions for new recruits training, experienced sta? training, senior sta? training, and
specialized training in 2023.Skills recognition: Since 2020, nearly 20,000 individuals have participated in vocational skills assessments forjunior, intermediate, and senior brewers, technicians, as well as senior technicians.Master-apprentice: Conducted master-apprentice activities, resulting in 442 mentor-mentee pairs (at the Company
level), with 169 pairs formed in 2023.Excellent shift (team) lead: Since the inaugural "Gold Medal Class/Group Lead" selection in 2020, two rounds ofselections have been conducted, totaling 183 individuals.Moutai craftsman: The "Moutai Craftsman" selection began in 2019, with three rounds completed, totaling 207individuals.Technical position: Moutai brewing technical positions have been appointed every two years since 2016, with atotal of 255 people employed.
In 2023, we organized
offline training sessions, with66,399participants. In addition,22,567learningaccounts were opened on the online training platform, with an average of
learning hours per person. Thetraining coverage rate for employees was98%, with an average training duration of
hours per person.Among these, comprehensive leadership training programmes were conducted through various channels. O?inetraining sessions were held
times, with6,562participants and a total learning duration of
hours. Onlineleadership training courses, such as "Excellent Leadership - Co-creating Excellence with the Team" and "6ELeadership Model Construction", had
participants with e?ective learning durations exceeding1,000 hours.
Training achievements in 2023
In 2023, the Company appointed the rst wave of
In 2023, we appointed the first wave of 48 internaltrainers and invited professional institutions to conducttraining on theoretical knowledge, experience extraction,and teaching skills for these trainers, to build a strongerteam.
In 2023, we conducted the third and fourth roundsof specialized training under the "Chief Plan" and"Inheritance Plan" to comprehensively enhanceproduction quality management. Distinguished lecturersfrom Jiangnan University, Guizhou University, andMoutai Academy, as well as the Company's leaders,were invited to teach, aiming to deepen the professionalcapabilities of specialized talents.
In September 2023, we organized the first "MoutaiCup" Chinese Baijiu Liquor Body Design Competition.More than 150 participants from 67 brewing enterprisesacross 22 provinces, municipalities, and autonomousregions gathered to exchange skills and learn fromeach other. Our employees took home the rst, second,and third prizes in the competition for the Jiang-avourBaijiu.
Internal trainer team building
Specialized talent training
"Moutai Cup" Chinese Baijiu Liquor Body Design Competition
First ceremony for appointment of internal trainers
Specialized talent training
Group photo of leaders, guests and participants
internal trainers
Retention
throughbenets
Leading remuneration in the industry, and generous benets
Employee Remuneration ManagementMeasures, etc.Incentives for scientic and technological innovation achievements
Management Measures for the Selectionof Scientic and Technological InnovationAchievements, etc.
Retentionthroughcareerdevelopment
Smooth career development pathways, professional talentcultivation mechanisms, and an open and fair competition-basedsystem for talent study and development
Middle Management Personnel ManagementMeasures, and Employee TrainingManagement Measures, etc.Innovative and e?ective platforms such as Wang Li Skills MasterStudio, and Chen Jian Academician Workstation, etc.
Management Measures for Innovative Studios,etc.Moutai "Spring Equinox" Science, Technology, Innovation, andTalent Work Conference, Grain Rain "Talent Day", and AutumnEquinox Craftsmen Day, etc.
Implementation Plan for Moutai Talent DayActivities, and Implementation Plan for MoutaiCraftsmen Day Activities, etc.
Retentionthroughemotionalbonds
Party committee leaders connect with expert talents, and establishtalent service liaison mechanisms
Implementation Plan for Party CommitteeContacting Expert TalentsProvincial and municipal talent cards, and talent service greencards
Guidelines for the Application of High-levelTalent Green CardsSymposiums and visits; reading clubs, sporting events and restand recuperation; health management, and housing, etc.
Employee Health Examination ManagementStandards, Work Plan for Party CommitteeContacting and Serving Experts and Non-party Representatives, and Three-Year HappyMoutai Plan
Retentionthroughvalue
Application of achievements, proactive placement, and adoption ofrational recommendations, etc.; career development paths such astechnical guidance workers.
Measures for Managing RationalRecommendations and Measures forAppointment Criteria and Management ofTechnical Guidance Workers, etc.Moutai outstanding talents, Moutai model workers, Moutaicraftsmen, and most beautiful workers, etc.
Management Measures for Moutai OutstandingTalent Awards, Management Measures forMoutai Craftsmen Selection, and Recognitionand Reward Optimization Plan, etc.Re-employment of retired technical and skilled personnel
Management Regulations for the Re-employment of Technical and SkilledPersonnel, etc.
DimensionsRetention MeasuresInstitutional Mechanisms
Talent RetentionWe have put in place a number of systems to implement personalized talent retention measures, creating a strong atmosphere ofcherishing, respecting, and valuing talents. We aim to win and retain talents through multi-dimensional pursuits in material, spiritual, andvalue aspects.
We have laid a solid emphasis on employee benets and care, established a sound welfare protection system to provide personalizedsupport for different employee groups, and organized cultural and sports activities to create a warm and harmonious workingatmosphere.
We have contributed to social security funds such as pension and medical insurance for all employees, established an enterpriseannuity system, and purchased comprehensive personal accident insurance and supplementary medical insurance. Strictly adheringto the Attendance Management Measures, we have implemented statutory working hours and leave systems, ensuring employees'statutory holidays as well as welfare holidays such as maternity leave, breastfeeding breaks, paternity leave, and perinatal care leave. Inaddition, we have provided free meals for all employees, arranged shuttle buses for commuting, improved talent housing, and providedcomprehensive support for employees.In 2023, Heyixing Branch established talent apartments expected to solve housing turnover and accommodation problems for 2,400individuals.
We have fully recognized the key factors a?ecting the rights and interests of employees, and have developed various measures toprovide personalized support for various employees.
Rights and Benets
Benets
Care for the Employees
Young employeesEmployeesstationed in otherprovinces/citiesSick employeesRetired sta?
Female employees
Career path & planning, get-togethers for unmarried young employees, various interest groups, aswell as greetings for employees getting married or giving birth, etc.22+8 vacation mode, home visit leave, and only one spouse stationed in other provinces/cities inprinciple, etc.Visits to sick employees, mutual aid fund, and charity fund, etc.Visits to retired employees on the Senior Citizens' Day and Spring Festival, personalized free healthcheck-ups, and various cultural, entertainment, and sports activities, etc.
Adhere to the Collective Contract for the Protection of Special Rights and Interests of FemaleWorkers, ensuring their rights in terms of salary, holidays, promotion, and special periodprotection. We have purchased health insurance and maternity insurance for female employees,organized gynecological examinations, cervical cancer screenings, and breast cancer screenings,and provided maternity leave and childcare leave. We have established a "Home for FemaleEmployees", equipped with lactation rooms, parking spaces for pregnant women, and distributionof sanitary products for women during special periods. In 2023, we distributed labor insurance forall female employees, and activities such as parent-child activities, handicrafts, and themed readingwere organized to enhance the sense of happiness for female employees.
We promote a healthy lifestyle and enhances employee communication and cooperation through various cultural and sports activities,aiming to ensure a balance between work and life for employees and improve their cohesion and satisfaction.For the year 2023, there were 333 interest groups, including cultural and sports clubs, and English learning groups, etc., with 5,884participants. 822 cultural and sports activities were organized, creating a healthy living circle for employees "beyond eight hours".
We held the seventh Cultural and Art Festival of the Workforce, covering various forms such as singing, dancing,instrumental music, recitation, work-break exercises, essays, and creative design, etc. Over 10,000 sta? participated,creating a youthful and positive corporate atmosphere.
Songs and Dances, Charm of Kweichow Moutai: The 7th Cultural and Art Festivalof the Workforce
Cultural and Sports Activities
The 7th Cultural and Art Festival of the Workforce
We conduct annual surveys on employee satisfaction, dedication, and corporate culture identity through third-party online anonymousquestionnaires. In 2023, employee satisfaction reached 87 points, dedication 93.5 points, and corporate culture identity 94.8 points.Through cross-analysis of the data, the employee engagement in 2023 reached 91.8 points, showing a further improvement comparedto 2022.
We led employees to participatein the 2nd Zunyi WorkforceSports Games and won themen's basketball championshipand the men's 5-a-side footballchampionship, and took part inthe badminton competition, allcontributing to a healthy, positive,and virtuous atmosphere.
Strengthening tness and nurturing physical and mental health: Kweichow Moutaiconducted sports activities
2nd Zunyi Workforce Sports Games
< 1%
Employee turnover rate in 2023
We have placed a high value on the occupational health and safety of employees, consistently improved the occupational health andsafety management system, and provided a healthy and safe working environment for employees, to safeguard their health rights andinterests.
In accordance with laws and regulations such as the Occupational Disease Prevention and Control Law and the Regulations on theSupervision and Administration of Occupational Health in the Workplace, we have developed the Occupational Health ManagementSystem and continuously improved the framework for employee health and safety management. We have established an EmployeeHealth Management Leadership Team led directly by the senior executives of the Company to coordinate health and safety strategiesand performance management, improve the employee health organization management system, and establish service guaranteesystems. Our general manager leads and promotes the strategic and performance management of health and safety.
Health and Safety
The Health and Safety System
Kweichow Moutai's Occupational Health and Safety Management Structure
Employee Health Management Leadership Team
O?ce of the Employee HealthManagement Leadership Team
Operations Management SystemProduction Auxiliary SystemsProduction Systems
During the reporting period, following external audits conducted by the China Associationfor Quality, it was determined that the Company's occupational health and safetysystem had no major non-compliance issues and operated e?ectively. We obtained ISO45001:2018 certification for its Occupational Health and Safety Management System,covering the production and sale of the Moutai Baijiu and Jiang-avor series Baijiu.We have extended occupational health and safety requirements to relevant parties,explicitly stipulating in supplier admission standards that important material suppliers andlabor outsourcing suppliers must have occupational health and safety management systemcertication.We have developed annual occupational health and safety management objectives andimplementation plans, and implemented the safety responsibility system. All employeessign the Safety Production and Fire Safety Responsibility Agreement. Safety objectives arealso linked to employee performance.We have implemented the requirements of relevant national, provincial, and municipaldocuments, deepened e?orts to become a "Healthy Enterprise" and nurture "OccupationalHealth Experts", and has been awarded the provincial title - "Healthy Enterprise". And twoemployees were awarded the title "Occupational Health Experts".
Health and Safety Measures
Certicate of Kweichow Moutai'sOccupational Health andSafety Management System
Certication
Safety Objectives for 2022:
Number of major safety incidents:
Employee safety training ≥94%Timeliness rate of hazard rectication ≥
94.5%
Progress in 2023:
Number of major safety incidents:
Employee safety training100%Timeliness rate of hazard rectication100%
Kweichow Moutai's 2023 Safety Objectives and Achievement Status
In 2023, through data analysis, it was found that the total number of work-related injuries at HeyixingBranch decreased compared to the previous year, but the number of sprains increased comparedto the previous year, with most occurring among new employees. To address this, on one hand, westrengthened safety education and training, organized safety production "three-level" education,invited medical experts to promote the mechanism of sprains, and share practical knowledge forpreventing sprains. On the other hand, we introduced advanced technologies such as motion capture,conducted research projects to study how to help employees exert force scientically, strengthenedlabour protection, and further improved the standardization of actions. It proved to be quite e?ective,with a noticeable decrease in sprains among new employees in subsequent periods.Party Committee O?ce (Company O?ce)
Organization and Human Resources Department
Safety Management DepartmentMasses and Youth DepartmentLife Service Support Center
Corporate Culture Department (Media Integration Center)
Corporate Development DepartmentFinance DepartmentAudit Department
Ecology and Environmental Protection DepartmentDigital and Information Management CenterPlanning and Construction Department
Production Management DepartmentEquipment and Energy Management Department
Materials Supply CenterPower WorkshopMaintenance Support Workshop
Production Material Distribution Support Workshop
Transportation Support CenterLife Service Support Center
Crude Baijiu production plants
Daqu production plants
Blending and Storage plants (Liquor Body Design Center)
Packaging Production plants
We launched a public account "Communication from Heart to Heart" on our online platform, releasing information relatingto mental health knowledge 34 times throughout the year. Over 3,000 copies of the handbook - Ten Elements of MentalHealth Literacy were printed and distributed to grassroots trade unions and teams for study. Throughout the year, mentalhealth counseling services have been provided to over 90 employees.
Centered around the health issues and needs of employees, a multi-disciplinary team (MDT) provided preventivehealthcare services to employees through activities such as promoting health knowledge, self-health checks, healthcaretherapy, and psychological care. This initiative aimed at creating the service model – "The union is by your side to ensureyour health every day."
It organized training, assessment, certification, and re-evaluation for practitioners of special operations, specialequipment operations, and hazardous goods transportation, etc. 1,558 people have completed the process, with a 100%certication rate for on-the-job operations
Activities for the mental health care of employees
Pilot development of a "health cabin"
The Company implemented certication for special operations
Personalized occupational health protection
We have conducted various safety education and training activities and organized safetyculture events in accordance with the Regulations on Safety Education and TrainingManagement and the List of Tasks for the Safety Education and Training Outline, to furtherenhance employees' awareness of safety production and their safety skills.We organized a number of activities for the "Month of Safety Production", such as "EveryoneTalks about Safety and Everyone Knows Emergency Response", and our employees had anincreased awareness of safety. 1,679 sessions on topics including hazardous operations, riskidentication and control, safety rectication and construction, and emergency response, aswell as secondary and tertiary safety training, were conducted, with 45,000 participants anda coverage rate of 100% for safety education and training. At the same time, the professionalquality and work capability of the safety management team were comprehensively improved.In 2023, 416 people obtained safety management qualication certicates.In the scal year 2023, the Company's investment in safety production amounted to RMB 350million.
Safety Production Education and Training
People obtained safety managementqualication certicates
The Company's investment in safetyproduction amounted to RMB
million
Specialized training on safety management
Specialized training on reghting skills
Specialized training on emergency skills
Training on safety production and re management in
packaging production plants
Specialized training on safety management of
hazardous chemicals
Specialized training on standardization of
safety production
Safety Production Data of Kweichow Moutai in 2023
Work-related severe injury rate
0%
Work-related injury rate
0.56%
A year-on-year decrease of
10.86%
We have established a personalized occupational protection equipment repository, customizing special dust-proof masks forthe daqu-making process and developing food-grade silicone shoes for workers involved in the fermentation process, therebyimproving occupational health risk factors. Personalized occupational health examination plans are developed based on age,production plants and departments, and job types to ensure the physical and mental health and safety ofemployees.
Jointly Building a Booming Industrial EcosystemWe are committed to building a modern industrial ecosystem, engaging with stakeholders throughout the industry chain to jointlydiscuss, construct, and share benets, and continuously building the "three communities".
We adere to the management philosophy - "quality-oriented supply, partnership building, and modern chain integration". We have built"six supply chains" to continuously improve the supplier management system, promote the transformation of supply management from"business" to "chain", and from "chain" to "ecosystem", creating a sustainable supply chain characterized by mutual trust, long-termstability, and cooperation benet.
Building an Ecosystem of Supply Chains
Building "Six Supply Chains"
We have continuously been improving the Supplier Management Measures, Procurement Management Measures, and SupplierRelationship Management Regulations, etc., and adhering to the principle of sustainable procurement. We have carried out sustainablesupplier access management, performance management, and relationship management in the pre-, mid-, and post-stages of suppliermanagement, promoting the "Chain Leader System", aiming to gradually transition from "procurement management" to "supply chainmanagement" and from "transactional procurement" to "strategic ecosystem construction".
Strengthening Supplier Management
Raw and auxiliarymaterials supply chain
Package and storage
supply chainEngineering supply
chainService supply chain
Equipment supply
chainDigital supply chain
In line with the Procurement Management Measures, suppliers were comprehensively evaluatedbased on aspects such as technology, quality, service, and qualications. The Legal ComplianceDepartment uniformly reviewed procurement documents and organized site inspections byinspection teams according to project needs.Clear requirements were set for suppliers to provide relevant certification documents forquality, environmental protection, occupational health, and food safety to ensure they had goodqualications and strength.Research, collection, and verification of information related to supplier sustainability wereconducted to conrm whether suppliers met sustainability requirements.When drafting tender documents, it was necessary to specify Kweichow Moutai's sustainabilityrequirements for suppliers.19 supplier access standards were formulated, and qualification, capability, and on-siteassessments were conducted for important material suppliers.
Conducted regular meetings with key suppliers, provided assistance, and o?ered incentives toimprove the sustainability of supply chains.Implemented classification and grading management, categorizing suppliers into strategic,assurance, and competitive levels, to manage supplier relationships accordingly. In 2023, 18strategic suppliers, 196 assurance suppliers, and 218 competitive suppliers were identied.Enhanced the cultivation of strategic suppliers, fully leveraging the theoretical and technicaladvantages of the expert teams from strategic suppliers, conducting technological research,exchange visits, and training sessions, and jointly carrying out research and development anddeveloping standards on digital development, product technology innovation, as well as greenand low-carbon environmental protection.
Continuously monitored the sustainability risks of suppliers, supplier code of conduct, riskresponse measures, and the achievement of green indicators.Incorporated sustainability indicators into the annual performance assessment of suppliers as akey basis for the annual performance evaluation and classication of suppliers.
Supplier access
management
Supplier relationship
management
Supplier performance
management
Kweichow Moutai's Supplier Management in 2023
Number of collaborating suppliers-432Annual audit rate of suppliers%100%Cumulative number of suppliers trained-763Rate of contract fulllment by suppliers%91%Supply network index-87.3
IndexYear 2023Unit
Build a supply chain of raw and auxiliary materials with high-quality varieties,advanced planting techniques, and modem storage and transportation facilities.Build an eco-friendly package and storage supply chain with professional designand superior quality.Build an engineering supply chain with first-class planning, scientific design andexcellent quality.Build a service supply chain with professional services, cutting-edge mindset andremarkable e?ciency.Build an equipment supply chain with stable channels, e?cient R&D and powerfuloperation and maintenance.Build a digital supply chain with pioneering technology, leading innovation, andregion-wide collaboration.
We focuse on the sustainable development of its suppliers, adjusting and optimizing the Code of Conduct for Suppliers. It enhancessustainable management of suppliers by centering around four themes of sustainable development: employee rights, occupationalhealth and safety, environmental protection, and business ethics and integrity.
Working Together for Sustainable Development
We require suppliers to commit to upholding employee rights, ensuring compliance with decentworking conditions as stipulated by the International Labour Organization (ILO) and the UnitedNations Global Compact (UNGC), and creating decent working conditions, and mandates that theseconditions apply to all its employees.
We require suppliers to provide and maintain a safe working environment, and integrate good healthand safety management practices into their operations, including compliance with labor safetyregulations, conducting safety training, providing employee protection, and managing occupationalinjuries and diseases.
We prioritize partnerships with environmentally friendly enterprises, advocates for greendevelopment, improves the Blacklist of Packaging Materials (Environmental Protection Category),and focuses on reducing environmental pollution risks from the product design stage. In themeantime, we require suppliers to implement appropriate management systems and governanceframeworks to assess environmental risks, implement appropriate control measures to mitigateimpacts, and maintain responsible business practices towards the environment.
We adhere to the principles of compliance with laws, regulations, and discipline, and haveestablished norms such as the Registration and Filing System for Business Operation Activitiesin Material Supply Business and Prohibitive Rules on Integrity in Material Supply Operations andProhibitive Rules on Integrity in Procurement Operations, and incorporated integrity management-related content into supplier assessments. In 2023, the proportion of suppliers covered by theprinciples of clean procurement reached 100%.
Employee rights &
interests
Occupational healthand safety
Environmentalprotection
Business ethicsand integrity
We maintain open channels of communication with suppliers, vigorously promoting the "quality" and "assurance" dual enhancementinitiatives. It has organized various training and exchange meetings, leveraging its own resource advantages to provide comprehensivesupport to suppliers, thereby facilitating high-quality development.
Deepening Communication with Suppliers
We carried out factory inspection and quality improvement assistance to 20 important package materialsuppliers, and the supply qualification rate and quality control level of the suppliers have been effectivelyimproved.
Supplier quality inspection
We organized 38 supplier symposiums, training sessions, and 15 quality analysis meetings, ensuring earlydetection, communication, and resolution of quality issues.
Supplier training
We commended and tilted orders towards 26 suppliers whose quality indicators improved, with incentivestotaling RMB 42,883,800. A total of RMB 215 million was invested throughout the year to support supplier bases.Supplier support
In 2023, the supplier satisfaction score of 97.6, exceeding 95 for three consecutive years. Analysis and sorting ofover 300 pieces of feedback and suggestions were conducted, with 91% of them translated into work measuresand new research topics.
Supplier satisfaction
We work closely with distributors to deepen market penetration, guided by the "ve integration marketing strategy", to enhance marketeffectiveness. We share industry insights with distributors and provide specialized training to enhance their service capabilities.Through assessment and evaluation, we encourage distributors to enhance their core competitiveness, strengthen channel loyalty andadaptability, and form a strong strategic cooperative alliance.
Building a Stronger Distribution Team
Training has been conducted in waves and by region. In 2023, we organized sevenphysical training sessions for channel partners in Guiyang, Beijing, Xi'an, Yantai,Hangzhou, Wuhan, and Shenzhen, covering all channel partners. Also, monthly onlinetraining sessions were conducted.
Established a rst-accountability mechanism and kept communication channels open;Conducted regular surveys of distributors' needs through field visits and distributorconferences to collect market information;Held regular market work meetings and commended outstanding distributors.
Leveraged the digital marketing platform - "iMoutai" as a link to empower distributorpartners, working together to build the Moutai Baijiu sales channels, achieving the goal ofintegrated platform sales, unied online settlement, and targeted o?ine distribution.Integrated resources from all parties to build an S2B2C integrated online and o?ine salesmodel, promoting digital transformation in marketing.
Standardizedmanagement
Distributor
training
Distributorcommunication
Marketing
platformbuilding
We have developed the Kweichow Moutai Distributor Monthly Assessment ManagementMeasures and the Kweichow Moutai Jiang-flavor Baijiu Marketing Co., Ltd. DistributorManagement Measures to strengthen marketing network management;We have incorporated clauses on distributor integrity commitments into the DistributionContracts to clarify the anti-corruption and integrity obligations of distributors.
We adhere to the original intention of fullling social responsibilities and steadfastly engage in public welfare activities, demonstratinggreater responsibility as it contributes to the process of promoting the Chinese modernization and achieving common prosperity. In2023, leveraging the Kweichow Moutai Public Welfare Foundation and coordinating with relevant stakeholders and social resources, wehave delivered public welfare projects to extend the benets of philanthropy to a wider range, more elds, and broader populations. Wehave paid close attention to and responded to social needs, connecting various resources to help the needy and provide relief, to makepeople feel warm.
Upholding Virtue and Mei
Jointly Honouring Responsibility and CommitmentWe practice the responsibility concept - "Big Brand and Big Responsibility", strongly supporting the Kweichow Moutai Public WelfareFoundation. In conjunction with the UNSDGs, we have developed public welfare plans, enriched the public welfare brand matrix, andgathered more positive forces to engage in social welfare, industrial development, and rural revitalization. Through various measures,we have been contributing to the shared prosperity of a better life for numerous families.
RMBmillion invested in charity
In 2023
million
Donation to the China YouthDevelopment Foundation foreducational assistance: RMB
19,400individuals
"China Moutai, Backbone of theNation" Educational Aid: Annualsponsorship for
20,678,700
Donation for "Moutai Prince ·Bright Youngsters": RMB
1,995,000Donation for "Laymao ·Growth in Love": Over RMB
369,500Donation for "Wangmao StarProject": RMB
155,492,200Donations by distributors andsuppliers amounted to RMB
7,353,300Donation for "Han Jiang,Dedicated Heritage": RMB
7,005,800Donation for "Guizhou Daqu·Love inEvery Drop of Liquor" Activity: RMB12,266,200Donation for "Moutai 1935 · GreatPhysicians of the Nation": RMB
On December 18, 2023, a 6.2-magnitude earthquake struckJishishan County, Linxia, Gansu Province. We promptly initiateddisaster relief response by donating RMB 15 million to theGansu Provincial Charity Federation. Also, our distributors inGansu, Sichuan, and Henan provinces collectively donatedRMB 4 million to the Gansu Provincial Charity Federation andthe Qinghai Provincial Charity Federation, to assist in providingemergency relief supplies and supporting post-disaster recoveryand reconstruction e?orts in the a?ected areas.
Donation to the earthquake-stricken Jishishan County, Linxia, Gansu Province
Since 2012, we have partnered with the China Youth Development Foundation to initiate the hope project for fulllingdreams: "China Moutai – Backbone of the Nation", which has been ongoing for 12 consecutive years. With a cumulativedonation exceeding RMB 1.2 billion, the project has provided targeted assistance to over 230,000 academicallyoutstanding but nancially disadvantaged students, enabling them to walk from their "home doors" to the "school gates"of universities. The project has become the largest, most widely supported, and inuential charity project in China'sphilanthropic assistance to education. It has been awarded the highest government award in the eld of charity andphilanthropy in China, the "China Charity Awards", in 2013, 2018, and 2023, respectively.
Fullling dreams through education support
Donation Certicate
Public Welfare Scholarship Activity
We focuse on "upholding the bottom line, promoting development,and driving revitalization" to accurately address assistance tasks. Wefocuse on infrastructure construction, industrial development, andeducational support, among other areas, implementing measuressuch as consumer assistance, building beautiful villages, andfostering rural talents to promote the effective implementation of"one plan for one village". In 2023, the direct investment in ruralrevitalization was more than RMB 51.7 million, beneting more than50,000 people.We have been assisting in improving rural education, enhancing thequality of rural talents through academic support, talent assistance,skills training, and job provision, thereby stimulating the endogenouspower of rural revitalization.
Supporting Rural Revitalization
In 2023, the direct investment in ruralrevitalization was more than RMB
51.7
millionBeneting more than
50,000
people
We have been promoting the connection between productionand sales, leveraging platforms such as "Moutai FansCarnival" to assist in the exhibition and sales of agriculturalspecialty products from places like Daozhen, expanding thesales channels for local agricultural products.
Guizhou specialty products outreach
Through activities such as visits and greetings on Children's Day and during other festivals, we donated learning and sportssupplies to paired assistance village schools and coordinated with Jiangxi Distributors Association to donate RMB 345,000to improve infrastructure such as the cafeteria and multimedia classrooms at Pingmo Elementary School.
Building a beautiful countryside
Talent assistanceImplemented talent placement plans with Chishui City and Bozhou District, opening up new pathways for talent cultivation by dispatchingnumerous outstanding sta? to provide on-site assistance and support year-round.Technical trainingConducted technical skill training such as specialty agricultural cultivation, organizing 239 sessions of technical training in assistedareas, with over 8,000 frontline workers and professional technical personnel trained.
We follow honest and compliance-based operations, thoroughly implements General Secretary Xi Jinping's importantstatements on rural work, focuses on its main responsibilities, leverages its industrial advantages, and implements the"Five Ones" project. This initiative supports the development and expansion of supporting industries represented by rawmaterials and packaging materials, promotes employment, and drives local economic development.
Strengthening Industrial Drive
Leveraging the advantages of the liquor industryresources, we implement the "Company + Government+ Platform Companies + Cooperatives and Farmers"sorghum base management model, assisting in thedevelopment of demonstration bases for sorghum usedin Moutai Baijiu. It provides free green manure seedsand organic fertilizers to farmers in the raw materialbase, conducts specialized training on sorghumplanting knowledge, increases investment in organiccertification for crops, and continuously improves thestandards of raw material cultivation. In 2023, 420square kilometers of sorghum were planted, with astorage of 141,400 tons, driving 120,000 households offarmers to increase income and become prosperous.
Base support
By acting as a liaison and facilitating policy introductions,we encouraged raw material suppliers to establishsecondary warehouses and packaging enterprisesaround the Moutai area in Guizhou, promoting localeconomic development and providing job opportunitiesfor 3,800 people. In 2023, three inbound packagingsuppliers transitioned from trading to production-orientedenterprises, while five suppliers established transitwarehouses around the Maotai town.
Helping the entry of supporting industries into Guizhou
We pay close attention to global development, responds to the needs and expectations of the international community, and workstogether with international channel partners to participate in international philanthropy. We are committed to contributing its strength tobuilding a community with a shared future for mankind and demonstrating the positive image of Chinese enterprises.
Working with International Partners to Honour Responsibility
In 2023, we together with channel partners, conductedsix charitable activities, including donations toorphanages on Children's Day and a visit to the medicalteam stationed in Mozambique, totaling RMB 469,000.
Conducted donation activities at orphanages on Children's Day
Organic land plot mappingA warehouse
upgraded orconstructed based
on national grainreserve standards
A high-standarddemonstration baseA visual traceability networkbased on the raw materialsupply chain system
One MapOne Warehouse
The "Five Ones" project
Organic and green certication
One Certicate
One BaseOne Network
Outlook
GRI Standards Content Index
In 2024, we will adhere to the guidance of Xi JinpingThought on Socialism with Chinese Characteristics for aNew Era and thoroughly implement the new developmentphilosophy in our continued "Five-Line" journey to highquality development with Moutai aesthetics of Mei as thevalue connotation. In the pursuit of "endless Mei, endlessme" with the attitude of "forging ahead for Mei," we will joinhands with stakeholders to practice ESG in a comprehensiveand holistic manner. In this way, we will promote Moutai'shigh-quality development and modernization to a new leveland achieve a new leap forward.
Disclosure titlePageGRI 2: General Disclosures 20212-1Organizational detailsP62-2
Entities included in theorganization's sustainabilityreporting
P12-3
Reporting period, frequency andcontact point
P12-6
Activities, value chain and otherbusiness relationships
P102-1062-7EmployeesP88-892-9
Governance structure andcomposition
P20-212-10
Nomination and selection of thehighest governance body
P222-11
Chair of the highest governancebody
P4-52-12
Role of the highest governancebody in overseeing themanagement of impacts
P16-172-13
Delegation of responsibility formanaging impacts
P12-132-14
Role of the highest governancebody in sustainability reporting
P12-132-16
Communication of criticalconcerns
P16-172-17
Collective knowledge of thehighest governance body
P12-132-18
Evaluation of the performance ofthe highest governance body
P222-19Remuneration policiesP222-20
Process to determineremuneration
P222-22
Statement on sustainabledevelopment strategy
P132-25
Processes to remediate negativeimpacts
P272-26
Mechanisms for seeking adviceand raising concerns
P14-172-27
Compliance with laws andregulations
P23-262-28Membership associationsP44
Disclosure titlePage
2-29
Approach to stakeholderengagement
P16-172-30Collective bargaining agreementsP89GRI 3: Material Topics 2021
3-1
Process to determine materialtopics
P15-163-2List of material topicsP15-163-3Management of material topicsP15-16EconomyGRI 201: Economic Performance 20163-3Management of material topicsP20-29201-1
Direct economic value generatedand distributed
P6201-2
Financial implications and otherrisks and opportunities due toclimate change
P60-62201-3
Dened benet plan obligationsand other retirement plans
P88-89GRI 203: Indirect Economic Impacts 20163-3Management of material topicsP109203-1
Infrastructure investments andservices supported
P109-113203-2
Signicant indirect economicimpacts
P109-113GRI 204: Procurement Practices 20163-3Management of material topicsP102-105GRI 205: Anti-corruption 20163-3Management of material topicsP24-25205-1
Operations assessed for risksrelated to corruption
P24-25205-2
Communication and trainingabout anti-corruption policies andprocedures
P24-25
Disclosure titlePageGRI 206: Anti-competitive Behavior 2016
3-3Management of material topicsP26
EnvironmentGRI 301: Materials 20163-3Management of material topicsP74-76301-2Recycled input materials usedP74-76301-3
Reclaimed products and theirpackaging materials
P74-76
GRI 302: Energy 2016
3-3Management of material topicsP74302-1
Energy consumption within theorganization
P74302-3Energy intensityP74302-4Reduction of energy consumptionP74302-5
Reductions in energyrequirements of products andservices
P72-73GRI 303: Water and E?uents 20183-3Management of material topicsP69, 78-81303-1
Interactions with water as ashared resource
P78-79303-2
Management of water discharge-related impacts
P69303-3Water withdrawalP81303-4Water dischargeP69303-5Water consumptionP81GRI 304: Biodiversity 20163-3Management of material topicsP82-85
Disclosure titlePage
401-2
Benets provided to full-timeemployees that are not providedto temporary or part-timeemployees
P95401-3Parental leaveP95
GRI 402: Labor/Management Relations 20163-3Management of material topicsP88
GRI 403: Occupational Health and Safety 2018
3-3Management of material topicsP98403-1
Occupational health and safetymanagement system
P98403-2
Hazard identication, riskassessment, and incidentinvestigation
P99403-3Occupational health servicesP100-101403-4
Worker participation,consultation, and communicationon occupational health andsafety
P100-101403-5
Worker training on occupationalhealth and safety
P100-101403-6Promotion of worker healthP98-101403-7
Prevention and mitigation ofoccupational health and safetyimpacts directly linked bybusiness relationships
P99-101403-8
Workers covered by anoccupational health and safetymanagement system
P99403-9Work-related injuriesP101403-10Work-related ill healthP99-101GRI 404: Training and Education 20163-3Management of material topicsP90404-1
Average hours of training peryear per employee
P92404-2
Programs for upgradingemployee skills and transitionassistance programs
P90-93404-3
Percentage of employeesreceiving regular performanceand career development reviews
P90-94
Disclosure titlePage
304-1
Operational sites owned, leased,managed in, or adjacent to,protected areas and areas ofhigh biodiversity value outsideprotected areas
P82-85304-2
Signicant impacts of activities,products and services onbiodiversity
P82-85304-3Habitats protected or restoredP82-85GRI 305: Emissions 20163-3Management of material topicsP69-71305-5Reduction of GHG emissionsP64305-7
Nitrogen oxides (NOx), sulfuroxides (SOx), and othersignicant air emissions
P70GRI 306: Waste 20203-3Management of material topicsP71306-1
Waste generation and signicantwaste-related impacts
P71306-2
Management of signicant waste-related impacts
P71306-3Waste generatedP71306-4Waste diverted from disposalP71306-5Waste directed to disposalP71
GRI 308: Supplier Environmental Assessment 20163-3Management of material topics
P78-79,
103-105308-2
Negative environmental impactsin the supply chain and actionstaken
P105SocietyGRI 401: Employment 20163-3Management of material topicsP78-79401-1
New employee hires andemployee turnover
P97
Disclosure titlePage
GRI 405: Diversity and Equal Opportunity 2016
3-3Management of material topicsP88405-1
Diversity of governance bodiesand employees
P22, 88-89GRI 406: Non-discrimination 20163-3Management of material topicsP88406-1
Incidents of discrimination andcorrective actions taken
P88
GRI 407: Freedom of Association and CollectiveBargaining 20163-3Management of material topicsP89, 96GRI 408: Child Labor 20163-3Management of material topicsP88GRI 409: Forced or Compulsory Labor 20163-3Management of material topicsP88GRI 413: Local Communities 20163-3Management of material topicsP109-113413-1
Operations with localcommunity engagement, impactassessments, and developmentprograms
P109-113GRI 416: Customer Health and Safety 20163-3Management of material topics P36-37416-2
Incidents of non-complianceconcerning the health and safetyimpacts of products and services
P37GRI 417: Marketing and Labeling 20163-3Management of material topics P46-51417-1
Requirements for product andservice information and labeling
P46-51
ESG Policies, Laws & Regulations
ChapterLaws and RegulationsInternal Systems
01 Ethical Business Conduct: Upholding Business Principles and Optimizing Governance
OptimizeCorporateGovernance
Company Law
Articles of AssociationRules of Procedure for Shareholders' MeetingMeasures for Performance Assessment of Members of the ManagementMeasures for Remuneration Management of Members of the Management
RegulateCorporate Acts
Guidelines of the Shanghai Stock Exchange onthe Self-Regulation of Listed Companies No. 5—Transactions and Related TransactionsAnti-Monopoly LawAnti-Unfair Competition LawSupervision LawAnti-Money Laundering LawRegulations on Handling Letters and VisitsRules for Disciplinary Inspection and SupervisionOrgans on Handling Reports and Complaints
Rules of Procedure of the Risk and Compliance Management Committeeof the Board of DirectorsCompliance Management MeasuresInternal Control Management ManualWork Safety Compliance GuideLabor and Employment Compliance GuideDecision-making Policy for Connected TransactionsComprehensive Risk Management SolutionsSupplier Code of ConductAnti-monopoly Compliance GuideAnti-Unfair Competition Compliance GuideEcology and Environmental Protection Compliance GuideMeasures for Handling Violations of Rules, Disciplines, and Laws byEmployeesRules on Supplier Management for Hardware and Low-ConsumptionMaterialsRules on Supplier Management for Husks and StrawsNegative List of Employees' ActsSeveral Measures of the Party Committee of the Company for FurtherStrengthening Oversight for Leadership Teams and Their HeadsProhibitive Provisions for Integrity in Construction of Engineering ProjectsProhibitive Provisions for Procurement IntegrityProhibitive Provisions for Integrity in Resources SupplyInformationSecurity andPrivacy Protection
Personal Information Protection LawCybersecurity LawData Security Law
Management Measures for Letters and VisitsManagement Measures for Network and Information SecurityManagement Measures for Data Security (for Trial Implementation)Regulations on the Management of Personal Information Protection (forTrial Implementation)Guidelines for the Implementation of Classied and Graded Data SecurityControl
02 Build the Brand through Inheritance and Innovation
Pursue SuperiorQuality
A List of Applicable Laws, Regulations, and Other Requirements for Qualityand Food SafetyFood Safety Emergency Response PlanProduct Recall Control ProceduresWeekly Food Safety Inspection and Governance Report
ChapterLaws and RegulationsInternal Systems
PracticeResponsibleMarketing
Advertising Law of the People's Republic of ChinaLaw of the People's Republic of China on theProtection of Consumer Rights and InterestsTrademark Law of the People's Republic of China
Management Measures for the Marketing and Promotion of Moutai BaijiuDistribution SystemGuiding Principles for the Management of General Distribution Products(Brands)Marketing Activities Support Program for Kweichow Moutai BaijiuNews Publicity Management MeasuresAdvertising Review Process and Operation GuidelinesAdvertising Positive and Negative ListManagement Measures for General Distribution Brands (Products)Policies and Management Measures of Kweichow Moutai Baijiu Import andExport Co., Ltd. on "Responsible Marketing"Measures of Kweichow Moutai Baijiu Import and Export Co., Ltd. for theManagement of Expenditure for Advertising and Promotion Activities inExport MarketsManagement Measures for Customer Consultation and ComplaintsKweichow Moutai Standard Service Language for Exclusive StoresKweichow Moutai Standard Service ManualKweichow Moutai Management Measures for Product Replacement(Rework)Management Measures for Leaking Baijiu Exchange03 Exuding Grace: Building a Harmonious and Coexistent Green System
AddressingClimate Change
Working Guidance for Carbon Dioxide Peaking andCarbon Neutrality in Full and Faithful Implementationof the New Development Philosophy
Action Plan for Carbon Peak and NeutralityAction Plan for Carbon Dioxide Peaking Before 2030Guidelines for Greenhouse Gas EmissionsCalculation Methods and Reporting in Food,Tobacco, Alcoholic Beverage, Beverage and RenedTea Enterprises (Trial)Greenhouse Gas Calculation System: Code ofConduct for Enterprise Calculation and ReportingGuidelines for Greenhouse Gas Emission Calculationand Reporting in Industrial EnterprisesGreenhouse Gases - Product Carbon Emissions -Requirements and Guidelines for Quantication andCommunication
Green Operations
Environmental Protection Law of the People'sRepublic of ChinaEmergency Response Law of the People's Republicof ChinaAtmospheric Pollution Prevention and Control Law ofthe People's Republic of ChinaLaw of the People's Republic of China on thePrevention and Control of Environment PollutionCaused by Solid WastesEnergy Conservation Law of the People's Republicof China
Overall Plan for Building Xi Jinping's Ecological Civilization Practice
Demonstration Base and Building the Company as a Role Model for
Environmental Protection in the Industry
Environmental Protection Management Regulations
Rules on Environmental Protection Work Assessment
Comprehensive Assessment Management Measures
Emergency Plan for Sudden Environmental Incidents
Regulations on the Management of Waste Materials Recycling
Energy Management Manual
ChapterLaws and RegulationsInternal Systems
Green Operations
Energy Operation Management RegulationsEnergy Data Management RegulationsImplementation Plan for Product Packaging Materials for Green SupplyChainsFinished Liquor Outer Packaging Materials Recycling Management SystemPackaging Material Technology Blacklist (Environmental Protection),List of Restricted and Prohibited Packaging MaterialsNegative List of Packaging Materials for New Product DevelopmentKweichow Moutai Glass Bottle Recycling and Reuse Pilot ImplementationPlanWater ResourceManagement
Water Pollution Prevention and Control Law of thePeople's Republic of China
Supplier Sustainable Development Implementation MethodWater Law of the People's Republic of China
04 Enriching Beauty - Sharing a Beautiful Future
Creating a HappyMoutai Together
Labor Law of the People's Republic of ChinaLabor Contract Law of the People's Republic ofChinaLaw of the People's Republic of China on thePrevention and Control of Occupational DiseasesProvisions on the Supervision and Administration ofOccupational Health at Work Sites
"Happiness at Moutai" 2023 Plan for the Pilot Programme of Improving the
Workforce's Life
Employee Recruitment Management Measures
Measures for Managing the Workers' Congress
Measures for Managing the Workers' Congress at the Grassroots Level
Occupational Skill Level Recognition and Appointment Management
Measures
Professional and Technical Personnel Title Evaluation and Appointment
Management Measures
Trial Plan for the Evaluation of Master Technicians
Employee Remuneration Management Measures
Management Measures for the Selection of Scientic and Technological
Innovation Achievements
Middle Management Personnel Management Measures
Employee Training Management Measures
Management Measures for Innovative Studios
Management Measures for Moutai Outstanding Talent Awards
Management Measures for Moutai Craftsmen Selection
Recognition and Reward Optimization Plan
Management Regulations for the Re-employment of Technical and Skilled
Personnel
Implementation Plan for Moutai Talent Day Activities
Implementation Plan for Moutai Craftsmen Day Activities
Implementation Plan for Party Committee Contacting Expert Talents
Attendance Management Measures
Occupational Health Management System
Regulations on Safety Education and Training Management
List of Tasks for the Safety Education and Training OutlineJointly Building aBooming IndustrialEcosystem
Supplier Management Measures
Procurement Management Measures
Supplier Relationship Management Regulations
Kweichow Moutai Distributor Monthly Assessment Management Measures
Kweichow Moutai Jiang-avor Baijiu Marketing Co., Ltd. Distributor
Management Measures
Feedback
Dear readers,Thank you very much for reading the Kweichow Moutai 2023 Corporate Social Responsibility and ESG report during your busy schedule.Your comments and suggestions on this report are highly appreciated for us to improve the quality and level of the report and our socialresponsibility and ESG e?orts!
Tel.: 0851-22386480E-mail: mtshzr@moutai.com.cnAddress: Corporate Culture Department of Kweichow Moutai (Integrated Media Center),Maotai Town, Renhuai City, Guizhou ProvincePost code: 564501
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