Stock Code: 600519 Stock Abbr.: Kweichow Moutai
KWEICHOW MOUTAI CO., LTD.
ANNUAL REPORT 2023
Important Statements
I. The Board of Directors, Board of Supervisors, directors, supervisors and the senior managementof the Company guarantee that the information presented in this report is free of any false records,misleading statements or material omissions, and shall bear individual and joint legal liabilities forthe truthfulness, accuracy and completeness of its contents.
II. All directors of the Company attend the meeting of the board of directors.
III. Baker Tilly China CPAs has issued a standard unqualified audit report for the Company.
IV. Ding Xiongjun, responsible person for the Company, Jiang Yan, responsible person foraccounting work, and Cai Congying, responsible person for the Company’s financial affairs(Accounting Supervisor), have warranted that the financial statements in this report are true,accurate and complete.
V. The proposed profit distribution plan or the proposed plan of capitalization of capital reservesin the reporting period approved by the resolution of the Board of DirectorsOn the basis of a total capital of 1,256,197,800 shares by the end of 2023, all shareholders will bedistributed a cash dividend of RMB 308.76 (before tax) for every 10 shares, with a total profit distributionof RMB 38,786,363,272.80. If there is any change in the total share capital of the company before theequity registration date for the implementation of equity distribution, the total dividend amount will bemaintained unchanged, and the dividend ratio per share will be adjusted accordingly. The above profitdistribution proposal shall be submitted to the general assembly of shareholders of the Company fordeliberation and approval before implementation.
VI. Risk disclosure statement for forward-looking statementsForward-looking statements in this report concerning future plans or development strategies do notconstitute substantial promises to investors, due to the related uncertainty. Investors are advised to beaware of their own investment risks.
VII. Existence of non-operational embezzlement of funds by controlling shareholders or theirassociated partiesNo
VIII. Existence of financial guarantees to external parties in violation of the regulated decisionproceduresNo
IX. Over half of the directors’ failure to guarantee the truthfulness, accuracy and completeness ofthe Company’s disclosed annual reportNo
X. Significant Risk PromptsThe Company has elaborated the potential risks in the chapter of “The Company Discussion andAnalysis on its Future Development”. Investors are advised to pay their due attention.
XI. Information StatementAll information and data cited in this Report are objective and authentic. Financial figures herein arerecorded in CNY, unless otherwise specified. This Report is prepared in Chinese and English, respectively.In case of any ambiguity in the Chinese and English texts, the Chinese text shall prevail.
Contents
Section I Definitions ...... 5
Section II Company Profile and Key Financial Results ...... 5
Section III Management’s Discussion and Analysis ...... 9
Section IV Corporate Governance ...... 28
Section V Environment and Social Responsibility ...... 47
Section VI Significant Events ...... 53
Section VII Changes in Shares and Information about Shareholders ...... 66
Section VIII Preferred Shares ...... 71
Section IX Information about Bond ...... 71
Section X Financial Report ...... 71
Documents Available for Reference | References include the accounting statements signed and stamped by the respective individuals in charge of the company, the company accounting work, and the accounting department (their accounting supervisor). |
References include the audit report original signed and stamped by the certified public accountant and stamped by the accounting firm. | |
The originals of company documents and announcements that are publicly disclosed in China Securities Journal and Shanghai Securities News during the reporting period. |
Section I Definitions
I. DefinitionsUnless it is otherwise referred in the context, the terms in this report have the following meanings:
Terms and Definitions | ||
CSRC | refers to | China Securities Regulatory Commission |
SSE | refers to | Shanghai Stock Exchange |
Company, the company | refers to | Kweichow Moutai Co., Ltd. |
Controlling shareholder, group company | refers to | China Kweichow Moutai Distillery (Group) Co., Ltd. |
Reporting period | refers to | Fiscal Year of 2023 |
This report, the report | refers to | Annual Report 2023 |
Section II Company Profile and Key Financial Results
I. Corporate Information
Name of the Company in Chinese | 贵州茅台酒股份有限公司 |
Abbr. of the Company name in Chinese (if any) | 贵州茅台 |
Name of the Company in English | Kweichow Moutai Co., Ltd. |
Legal Representative | Ding Xiongjun |
II. Contact Information
Secretary of the board | Representative for securities affairs | |
Name | Jiang Yan | Cai Congying |
Address | Maotai Town, Renhuai City, Guizhou Province | Maotai Town, Renhuai City, Guizhou Province |
Tel. | 0851-22386002 | 0851-22386002 |
Fax | 0851-22386193 | 0851-22386193 |
mtdm@moutaichina.com | mtdm@moutaichina.com |
III. Company profile
Registered address | Maotai Town, Renhuai City, Guizhou Province |
Office address | Maotai Town, Renhuai City, Guizhou Province |
Zip code of office address | 564501 |
Website address | http://www.moutaichina.com/ |
E-mail address | mtdm@moutaichina.com |
IV. Information disclosure and the place where the report is available
Media name and its website address where the report is disclosed | China Securities Journal and Shanghai Securities News |
Website address of the stock exchange where the report is disclosed | http://www.sse.com.cn/ |
Place where the report is available | The office of the Board of Directors |
V. Stock information
Stock information | ||||
Stock type | Stock exchange where the shares are listed | Stock abbreviation | Stock code | Previous stock Abbreviation (if any) |
A shares | Shanghai Stock Exchange | Kweichow Moutai | 600519 |
VI. Other information
Appointed accounting firm (domestic) | Name | Baker Tilly China CPAs |
Office address | Building 12, Foreign Language Culture and Creativity Park, 19 Chegongzhuang West Road, Haidian District, Beijing | |
Name of the signing accountant | Tang Hongchun, Liu Zonglei, Yang Shu |
VII. Key Accounting Data and Financial Indicators in the past three years(I) Key accounting data
Monetary Unit: Yuan Currency: RMB
Key accounting data | 2023 years | 2022 years | Year-on-year increase of decrease (%) | 2021 years | ||
After adjustment | Before adjustment | After adjustment | Before adjustment | |||
Operating revenue | 147,693,604,994.14 | 124,099,843,771.99 | 124,099,843,771.99 | 19.01 | 106,190,154,843.76 | 106,190,154,843.76 |
Net profit attributable to shareholders of the listed company | 74,734,071,550.75 | 62,717,467,870.12 | 62,716,443,738.27 | 19.16 | 52,435,506,622.16 | 52,460,144,378.16 |
Net profits deducting non-recurring profits and losses attributable to shareholders of the listed company | 74,752,564,425.52 | 62,792,896,829.57 | 62,791,872,697.72 | 19.05 | 52,556,464,900.24 | 52,581,102,656.24 |
Net cash flows from operating activities | 66,593,247,721.09 | 36,698,595,830.03 | 36,698,595,830.03 | 81.46 | 64,028,676,147.37 | 64,028,676,147.37 |
At the end of 2023 | At the end of 2022 | Increase or decrease at the end of the current period compared with the same period of the previous year | At the end of 2021 | |||
After adjustment | Before adjustment | After adjustment | Before adjustment | |||
Net assets attributable to shareholders of the listed company | 215,668,571,607.43 | 197,480,041,239.46 | 197,506,672,396.00 | 9.21 | 189,511,713,508.90 | 189,539,368,797.29 |
Total assets | 272,699,660,092.25 | 254,500,826,096.02 | 254,364,804,995.25 | 7.15 | 255,315,103,017.82 | 255,168,195,159.90 |
Share capital | 1,256,197,800.00 | 1,256,197,800.00 | 1,256,197,800.00 | 1,256,197,800.00 | 1,256,197,800.00 |
Note: In accordance with the "Enterprise Accounting Standards Interpretation No. 16" issued by theMinistry of Finance on November 30, 2022, the relevant content regarding the accounting treatment of"deferred income taxes related to assets and liabilities arising from individual transactions not applicableto initial recognition exemptions" shall be implemented as of January 1, 2023. The Company hasretroactively adjusted the relevant financial data for the comparative period, as detailed in Section 10 ofthe financial report, specifically in Part 5, "Important Accounting Policies and Accounting Estimates,"Subsection 24, "Changes in Important Accounting Policies and Estimates." The relevant financial datamentioned in the remainder of this annual report are all retroactively adjusted data.
(II) Key financial indicators
Key financial indicators | 2023 | 2022 | Year-on-year increase /decrease (%) | 2021 years | ||
After adjustment | Before adjustment | After adjustment | Before adjustment | |||
Basic earnings per share (RMB/share) | 59.49 | 49.93 | 49.93 | 19.16 | 41.74 | 41.76 |
Diluted earnings per share (RMB/share) | 59.49 | 49.93 | 49.93 | 19.16 | 41.74 | 41.76 |
Basic earnings per share after deducting non-recurring profits and losses (RMB/share) | 59.51 | 49.99 | 49.99 | 19.05 | 41.84 | 41.86 |
Weighted average rate of return on net assets (%) | 34.19 | 30.26 | 30.26 | Increase by 3.93 percentage point(s) | 29.89 | 29.90 |
Weighted average rate of return on net assets after deduction of non-recurring profits or losses | 34.20 | 30.29 | 30.29 | Increase by 3.91 percentage point(s) | 29.95 | 29.97 |
Description of the Company's main accounting data and financial indicators for the recent three years atthe end of the reporting period
□Applicable √N/A
VIII. Differences in accounting data by domestic and overseas accounting standards(I) Differences in the net profits and net assets attributable to shareholders of the company disclosedin the financial reports prepared under the international accounting standards and Chinaaccounting standards
□Applicable √N/A
(II) Differences in the net profits and net assets attributable to shareholders of the Companydisclosed in the financial reports prepared under the overseas accounting standards and Chinaaccounting standards
□Applicable √N/A
(III) Explanations for above accounting data differences
□Applicable √N/A
IX. Quarterly key financial data in 2023
Monetary Unit: Yuan Currency: RMB
Q1 (Jan.-Mar.) | Q2 (Apr.-Jun.) | Q3 (Jul.-Sept.) | Q4 (Oct.-Dec.) | |
Operating revenue | 38,755,812,096.89 | 30,820,207,348.88 | 33,692,335,242.67 | 44,425,250,305.70 |
Net profit attributable to shareholders of the listed company | 20,794,882,754.55 | 15,185,532,336.22 | 16,895,801,973.35 | 21,857,854,486.63 |
Net profits deducting non-recurring profits and losses attributable to shareholders of the listed company | 20,778,475,545.61 | 15,168,973,659.84 | 16,868,191,551.41 | 21,936,923,668.66 |
Net cash flows from operating activities | 5,244,796,293.93 | 25,142,381,901.03 | 19,614,828,823.70 | 16,591,240,702.43 |
Explanations for the differences between quarterly data and those disclosed in previous periodicalreports
□Applicable √N/A
X. Non-recurring Items and Their Gains/Losses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Non-recurring gains and losses | Amount in 2023 | Notes (if applicable) | Amount in 2022 | Amount in 2021 |
Profit or loss of disposal of non-current assets (including the offset amount where provision for asset impairment has been made) | 1,152,516.17 | -20,567,757.19 | -11,920,829.77 | |
Government grants included in the current profit or loss (except for government grants closely related with the normal business of the Company, obtained based on the established standard in accordance with national policies and provisions and having the continuous influence on the profits or losses of the Company) | 17,137,523.89 | 14,973,304.55 | 4,616,000.00 | |
The profit or loss from changes in the fair value of financial assets and financial liabilities held by non-financial enterprises and the profit or loss from the disposal of financial assets and finanical liabilities, except the effective hedging relevant to the Company’s normal business | 2,439,902.57 | -3,750,122.23 | ||
Other non-operating revenues and expenses except for the above-mentioned items | -47,733,771.71 | -157,251,041.33 | -210,928,052.99 | |
Other items of profit or loss subject to the definition of non-recurring profit or loss | 4,710,466.67 | 63,840,000.00 | 61,031,069.26 | |
Less: Influenced amount of income tax | -5,573,340.60 | -24,751,373.49 | -40,237,983.93 | |
Adjustment of non-controlling equity (after tax) | 1,772,852.96 | 1,174,838.97 | 244,326.28 | |
Total | -18,492,874.77 | -75,428,959.45 | -120,958,278.08 |
Where the Company recognizes the items not listed in the Explanatory Notice on Information Disclosureof Companies that Issue Securities Publicly No.1 - Non-recurring Profit or Loss as the non-recurring profitor loss items with the significant amount, or defines the non-recurring profit and loss items listed inExplanatory Notice on Information Disclosure of Companies that Issue Securities Publicly No.1 - Non-recurring Profit or Loss as recurring profit or loss items, reasons shall be given.
□Applicable √N/A
XI. Items measured at fair value
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Balance at the end of the period | Increase/decrease in the period | Affected amount of the profit of the period |
Held-for-trading financial assets | 400,712,059.93 | 400,712,059.93 | 24,072,241.71 | |
Other non-current financial assets | 4,002,439,902.57 | 4,002,439,902.57 | 2,439,902.57 | |
Total | 4,403,151,962.50 | 4,403,151,962.50 | 26,512,144.28 |
XII. Others
□Applicable √N/A
Section III Management’s Discussion and Analysis
I. Discussion and analysis of business situationIn 2023, under the leadership of the Board of Directors, the company adhered to the guidance of Xi JinpingThought on Socialism with Chinese Characteristics for a New Era, thoroughly studied and implementedthe spirit of the 20th National Congress of the Communist Party of China and the important speech ofGeneral Secretary Xi Jinping's inspection tour in Guizhou. The Board actively seized the opportunitypresented by the State Council Document No. 2 [2022], fully implemented the deployment of theprovincial party committee and provincial government, and focused on the strategic goal of 'double world-leading, three breakthroughs, and five leaps' set by the group company. With Moutai aesthetics as the corevalue, the Board guided the company to continue walking the high-quality development path of 'five lines'.Through collective efforts and perseverance, which named "Qixin"in Moutai, the company successfullyachieved various targets and tasks, made significant progress in promoting high-quality development, andtook solid steps towards modernization.
II. Industry sector situation in the reporting periodSee “Industry profile” and “Industry pattern and trend” in this report.
III. Business scope in the reporting periodThe main business of the Company is the production and sales of Moutai liquor and a series of liquors.The leading product "Kweichow Moutai" is one of the three famous distilled liquors in the world, and itis also a liquor brand integrating national geographical indication products, organic food and nationalintangible cultural heritage. The marketing network of the Company covers the domestic market and 64countries and regions on five continents. Over the years, the Company insisted on the pursuit of productquality. With careful care for brewing ecology, the inheritance and innovation of traditional process, andthe continuous development of corporate culture, the Company continuously empowered the enterpriseand promoted high-quality development and modernization construction of the enterprise.
The Company's business model is as follows: raw material procurement - product manufacturing - productsales. The raw material procurement model specifically involves: sorghum for Moutai liquor is procuredthrough a "company + local government + supplier + cooperative or farmer" model, while wheat isprocured through a "company + supplier + cooperative or farm" model. The procurement of other raw andauxiliary materials, as well as packaging materials, is primarily based on the company's production andsales plans, and is conducted through centralized procurement in the market. The production process flowinvolves: yeast making - Chinese Baijiu making – cellaring - blending - packaging. The sales modelincludes both Direct selling and wholesale distribution channels. Direct selling channels refer to self-operated sales and digital marketing platforms such as "i Moutai", while wholesale distribution channelsinvolve social dealers, supermarkets, e-commerce platforms, and other channels.
IV. Analysis of core competitiveness
√Applicable □N/A
The Company possesses "five core competences" composed of environment, engineering, quality, brand,and culture, as well as "four core potentials" consisting of unique origin protection, unreplicable microbialcolonies, unique brewing techniques handed down for thousands of years, and long-term stored base liquorresources. During the reporting period, there were no significant changes in the company's corecompetences.
V. Business operation briefing for the reporting periodFirstly, the company's business performance reached new heights. During the year, the company achieveda total operating revenue of 150.56 billion yuan, an increase of 18.04% year-on-year. Net profitattributable to shareholders of the listed company amounted to 74.734 billion yuan, an increase of 19.16%year-on-year. The main economic indicators maintained double-digit growth, and the company achievedremarkable development results once again. Kweichow Moutai, the world's only liquor brand with arevenue exceeding 100 billion yuan, continued to consolidate its position. Moutai 1935 created an"industry miracle" and became a product with a revenue exceeding RMB 10 billion within just two yearsof its launch. The revenue of Moutai Prince exceeded 4 billion yuan, while the revenue of Hanjiang,Guizhou Daqu, and Laimao exceeded 1 billion yuan respectively, forming a product matrix of billion,hundred million, and ten million-level products.
Secondly, the company's brand influence continued to grow. The company's market capitalizationremained stable above 2 trillion yuan, ranking first among A-share listed companies. Moutai ranked 24thon the "Brand Finance 2024 Global Brand Value Top 500" list with a brand value of 50.1 billion USdollars and third on the "2023 Brand Z Top 100 Most Valuable Chinese Brands" list with a brand valueof 88.427 billion US dollars (ranked 18th globally), firmly maintaining its position at the top of the"world's liquor brands". With a brand value of 1.05 trillion yuan and the absolute advantage of being theonly trillion-level brand, Moutai topped the Hurun Report's "Most Valuable Chinese Brands" list for thesixth time.
Thirdly, the company's corporate governance has been continuously improved. The board of directorssuccessfully completed its reelection, and the new board members are diverse and complementary in theirexpertise, ensuring the scientific decision-making of the board from diversified perspectives. During theyear, the board of directors convened three shareholder meetings to review and approve 17 proposals andheld 13 board meetings to review and approve 45 proposals, strictly implementing the "six major powers"of the board. The company has promoted the construction of a comprehensive risk management system,and the risk management ecosystem has taken shape. It was successfully selected as one of the new batchof "Double Hundred Enterprises" by the State-owned Assets Supervision and Administration Commissionof the State Council, awarded the Best Practice in Corporate Governance by the China Association forPublic Companies, won the National Quality Award for the third time, and the European Quality Awardfor the first time. The management foundation has been further consolidated, and the company's moderngovernance capabilities and level have been further enhanced.
Fourthly, ESG management improved quality and efficiency. ESG concept was practised in an all-roundmanner, and deeply integrated into production, operation, reform and development. In order to improveESG governance framework, the Company established an ESG Promotion Committee, including
Environment Sub-committee, Society Sub-committee and Governance Sub-committee and nine workinggroups. The Company systematically sorted out core issues and key projects in four steps of topicidentification, overall planning, integration and implementation, and improvement and innovation in linewith international norms, national policies, and advanced practices. Therefore the Company has optimizedits overall ESG management system, fully leveraged the effectiveness of management mechanisms, andcontinuously empowered the implementation and effectiveness of ESG.
Fifthly, shareholder returns have been stable with a slight increase. The company has effectively improvedthe quality of information disclosure, enhancing its pertinence, effectiveness, and readability. Throughvoluntary disclosures such as production and operation data, it has promptly demonstrated the status of itshigh-quality development to the market, earning an A-level (excellent) evaluation for informationdisclosure from the Shanghai Stock Exchange. With a candid and open attitude, the company has activelycommunicated with investors, achieving the highest frequency in recent years. It participated in investorexchange activities abroad for the first time and held an earnings presentation in the trading hall of theShanghai Stock Exchange, with the number of video views ranking among the top in A-share companies.The company was awarded the Best Practice for Earnings Presentation by the China Association for PublicCompanies. During the year, the company once again implemented a special dividend, distributing a totalof 56.55 billion yuan in cash dividends, accounting for 75.67% of the company's net profit attributable toshareholders in 2023. The dividend amount increased by approximately 1.8 billion yuan compared to theprevious year, reaching a new high, rewarding investors with practical actions.
(I) Main business analysis
1. Analysis of accounting item changes related to the income statement and the cash flow statementMonetary Unit: Yuan Currency: RMB
Item | Amount in the reporting period | Amount in the same reporting period of last year | YoY Change (%) |
Operating revenue | 147,693,604,994.14 | 124,099,843,771.99 | 19.01 |
Operating costs | 11,867,273,851.78 | 10,093,468,616.63 | 17.57 |
Selling and distribution expenses | 4,648,613,585.82 | 3,297,724,190.94 | 40.96 |
General and administrative expenses | 9,729,389,252.31 | 9,012,191,073.63 | 7.96 |
Financial expenses | -1,789,503,701.48 | -1,391,805,826.72 | N/A |
Research and development expenses | 157,371,873.01 | 135,185,680.40 | 16.41 |
Net cash flows from operating activities | 66,593,247,721.09 | 36,698,595,830.03 | 81.46 |
Net cash flows from investing activities | -9,724,414,015.16 | -5,536,826,334.90 | N/A |
Net cash flows from financing activities | -58,889,101,991.94 | -57,424,528,979.83 | N/A |
Reasons for the changes in operating revenue: mainly due to the increase of sales volume, the change inthe selling channel and product structure and the adjustment to the selling prices of main products in thecurrent period.
Reasons for the changes in operating costs: mainly due to the increase in sales volume and production costand changes in product structure in the current period.
Reasons for changes in selling and distribution expenses: mainly due to the increase in advertising andmarketing fees in the current period.
Reasons for changes in general and administrative expenses: mainly due to the increase in trademarklicense fees and depreciation of fixed assets in the current period.
Reasons for changes in financial expenses: mainly due to the increase in the interest income from depositswith commercial banks in the current period.
Reasons for changes in research and development expenses: mainly due to increase in research anddevelopment projects in the current period.
Reasons for changes in net cash flow from operating activities: mainly due to the increase in cash receivedfrom the company's sales of goods in the current period and the decrease in the net increase in term depositsthat cannot be withdrawn in advance by the company's holding subsidiary, Kweichow Moutai GroupFinance Co., Ltd.
Reasons for changes in the net cash flows from investing activities: mainly due to in the increase inacquisition of negotiable certificate of deposits by the Company’s holding subsidiary Kweichow MoutaiGroup Finance Co., Ltd. and the Company’s additional investment in industrial development fund, in thecurrent period.
Reasons for changes in net cash flows from financing activities: mainly due to the increase in cashdividends distributed in the current period.
Detailed explanation of major changes in the Company's business type, profit composition or profit sourcein the current period
□Applicable √N/A
2. Income and cost analysis
√Applicable □N/A
(1) Main business grouped by business segment, by product, by region and by sales model.
Monetary Unit: Yuan Currency: RMB
Main business grouped by business segment | ||||||
Operating revenue | Operating revenue | Operating costs | Gross profit margin | YoY Change of operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
Liquor | 147,218,996,281.04 | 11,620,203,653.32 | 92.11 | 18.94 | 17.42 | 0.11 |
Primary business (by product) | ||||||
Product | Operating revenue | Operating costs | Gross profit margin (%) | Increase or decrease in operating revenue over the previous year (%) | Increase or decrease in operating costs over the previous year (%) | Increase or decrease in gross profit margin over the previous year (%) |
Moutai | 126,589,066,691.89 | 7,445,470,669.11 | 94.12 | 17.39 | 18.83 | -0.07 |
Other liquor | 20,629,929,589.15 | 4,174,732,984.21 | 79.76 | 29.43 | 15.00 | 2.54 |
Main business grouped by region | ||||||
Region | Operating revenue | Operating costs | Gross profit margin | YoY Change of operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
Domestic | 142,868,885,823.91 | 11,280,212,551.30 | 92.10 | 19.52 | 18.01 | 0.10 |
Overseas | 4,350,110,457.13 | 339,991,102.02 | 92.18 | 2.61 | 0.76 | 0.14 |
Main business condition by sales model | ||||||
Sales model | Operating revenue | Operating costs | Gross profit margin | YoY Change of Operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
Wholesale agency | 79,986,119,397.90 | 8,569,360,111.66 | 89.29 | 7.52 | 6.82 | 0.07 |
Direct sales | 67,232,876,883.14 | 3,050,843,541.66 | 95.46 | 36.16 | 62.78 | -0.74 |
(2) Analysis of production volume, sales volume and inventory
√Applicable □N/A
Main product | Unit | Production volume | Sales volume | Inventory | YoY change of production volume (%) | YoY change of sales volume (%) | YoY change of inventory (%) |
Liquor | Ton | 100,141.15 | 73,274.04 | 293,790.03 | 8.98 | 7.48 | 6.21 |
(3) Execution situation of major acquisition contracts and major sales contracts
□Applicable √N/A
(4) Cost Analysis Table
Monetary Unit: RMB
Condition by business segment | ||||||||
By business segment | Main breakdown items of cost | Amount in the reporting period | As % of total cost (%) | Amount in the same reporting period of previous year | As % of total cost in previous year (%) | YoY change (%) | Description of reasons | |
Liquor | 11,620,203,653.32 | 100.00 | 9,896,113,336.80 | 100.00 | 17.42 | |||
Condition by product | ||||||||
By product | Main breakdown items of cost | Amount in the reporting period | As % of total cost (%) | Amount in the same reporting period of previous year | As % of cost in previous year (%) | YoY change (%) | Description of reasons | |
Liquor | Direct materials costs | 5,984,160,283.88 | 51.50 | 5,344,548,452.24 | 54.00 | 11.97 | ||
Direct labor costs | 4,372,013,596.08 | 37.63 | 3,395,434,595.85 | 34.31 | 28.76 | |||
Manufacturing costs | 640,613,571.24 | 5.51 | 558,168,244.61 | 5.64 | 14.77 | |||
Fuels and energies | 351,386,305.23 | 3.02 | 342,073,450.40 | 3.46 | 2.72 | |||
Transportation costs | 272,029,896.89 | 2.34 | 255,888,593.70 | 2.59 | 6.31 | |||
Total | 11,620,203,653.32 | 100.00 | 9,896,113,336.80 | 100.00 | 17.42 |
(5) Any share changes of subsidiaries merger scope changes in the reporting period
□Applicable √N/A
(6) Information about significant changes or adjustments of the Company’s businesses, productsor services
□Applicable √N/A
(7) Major customers and suppliers
A. Major customers
√Applicable □N/A
The sales of the top five customers amounted to RMB 14,709.4568 million, accounting for 9.99% of thetotal annual sales; among the sales of the top five customers, the sales of related parties amounted to RMB5,508.9263 million, accounting for 3.74% of the total annual sales.
During the reporting period, the sales proportion to a single customer exceeded 50% of the total, or therewere new customers among the top five customers, or there was a situation of heavy reliance on a fewcustomers.
□Applicable √N/A
B. Major suppliers
√Applicable □N/A
The purchase amount of the top five suppliers amounted to RMB 2,907.6931 million, accounting for 36.45%of the total annual purchase amount; in which the purchase amount of related parties amounted to RMB1,146.8131 million in the purchase amount of the top five suppliers, accounting for 14.38% of the totalannual purchase amount.
During the reporting period, the proportion of purchases from a single supplier exceeded 50% of the total,or there were new suppliers among the top five suppliers, or there was a situation of heavy reliance on afew suppliers.
□Applicable √N/A
3. Expenses
√Applicable □N/A
The selling and distribution expenses amounted to RMB 4,648,613,585.82 in the current period and RMB3,297,724,190.94 in the previous period. The year-on-year increase was mainly caused by the increase inadvertising expenditure and market investment in the current period.
The financial expenses amounted to RMB -1,789,503,701.48 in the current period and RMB -1,391,805,826.72 in the previous period. The year-on-year change was is mainly caused by the increasein interest income from deposits with commercial banks in the current period.
4. R&D expenses
(1) Statement of R&D expenses
√Applicable □N/A
Monetary Unit: RMB
R&D expenses in this period | 477,957,725.95 |
Capitalized research and development investment in the reporting period | 143,549,809.92 |
Total R&D expenses | 621,507,535.87 |
as(%)in operating revenue | 0.42 |
Proportion of capitalization of research and development investment (%) | 23.10 |
Note: The R&D expenses in this period include the R&D expenses listed in the operating costs and thecompensation of scientific researchers.
(2) Statement of R&D employee
√Applicable □N/A
Number of R&D employees | 800 |
as (%) in the total number of the Company’s employees | 2.40 |
Educational background structure of R&D employees | |
Educational background structure type | Number in each educational background structure |
Doctorate | 85 |
Master’s degree | 178 |
Undergraduate | 460 |
Junior college | 63 |
High school and below | 14 |
Age structure of R&D employee | |
Age structure type | Number in each age structure |
under 30 (excluding 30) | 154 |
30-40 (including 30 but excluding 40) | 422 |
40-50 (including 40 but excluding 50) | 157 |
50-60 (including 50 but excluding 60) | 52 |
over 60 | 15 |
(3) Explanation
□Applicable √N/A
(4) Reasons for the significant changes in R&D employees and their impacts on the Company’sfuture development
□Applicable √N/A
5. Cash flows
√ applicable□ not applicable
Monetary Unit: Yuan Currency: RMB
Item | Amount in this period | Amount in last period | Change (%) |
△Net increase in customer bank deposits and placement from banks and other financial institutions | -810,223,002.76 | -8,916,033,228.67 | N/A |
Refunds of taxes and surcharges received | 1,500,047.04 | 33,191,912.56 | -95.48 |
Cash paid for purchase of goods or receipt of services | 11,029,476,036.21 | 8,357,859,151.03 | 31.97 |
△Net increase in loans and advances to customers | -2,051,930,316.19 | 723,778,672.00 | N/A |
Net increase in loans to banks and other financial institutions | 2,500,000,000.00 | N/A | |
△Net increase in deposits in central bank, other banks and financial institutions | 1,570,003,429.01 | 13,037,761,321.90 | -87.96 |
△Cash paid for interest, handling charges and commissions | 142,896,151.21 | 79,226,410.98 | 80.36 |
Cash paid for other operating activities | 7,943,709,518.14 | 5,123,087,432.89 | 55.06 |
Cash received from disposal of investments | 7,549,947,301.15 | N/A | |
Cash received from investment income | 140,715,000.00 | 5,880,000.00 | 2,293.11 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 24,948,352.95 | 355,149.00 | 6,924.76 |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 2,619,755,888.79 | 5,306,546,416.54 | -50.63 |
Cash paid for investments | 14,817,852,800.00 | 210,000,000.00 | 6,956.12 |
Cash paid for other investing activities | 7,021,867.10 | 31,486,829.54 | -77.70 |
Cash paid for other financing activities | 134,315,261.93 | 54,332,788.37 | 147.21 |
Effect of fluctuation in exchange rate on cash and cash equivalents | 1,718,255.65 | 911,088.01 | 88.59 |
(1) The change in net increase in customer deposits and deposits from other banks and financial institutionsis mainly due to the transfer of equity of Guizhou Xijiu Co., Ltd. by the group company in the prior period,by which Guizhou Xijiu Co., Ltd. creased to be a member company of the Company's holding subsidiaryKweichow Moutai Group Finance Co., Ltd. and the Company's absorption of deposits in the prior perioddecreased a lot.
(2) The decrease in refunds of taxes and surcharges received mainly refers to the tax rebates retainedreceived by the Company's holding subsidiary Kweichow Moutai Sales Co., Ltd. in the prior period.
(3) The increase in cash paid for purchase of goods or receipt of services is mainly due to the increase incash paid by the Company for the purchase of materials.
(4) The decrease in the net increase in loans and advances to customers is mainly due to the recovery ofloans distributed by the Company's holding subsidiary Kweichow Moutai Group Finance Co., Ltd.
(5) The increase in the net increase in loans to banks and other financial institutions is mainly due to theincrease of Kweichow Moutai Group Finance Co., Ltd., the holding subsidiary of the Company in makingloans to banks and other financial institutions.
(6) The decrease in the net increase in deposits with the Central Bank and interbank funds is mainly dueto the decrease in the net increase in non drawable interbank time deposits deposited by the company'sholding subsidiary, Kweichow Moutai Group Finance Co., Ltd., compared with the previous period.
(7) The increase in the cash paid for interest, handling fee and commission is mainly due to the increasein the cash paid for interests by Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of theCompany in the current period, compared with the prior period.
(8) The increase in cash related to other operating activities is mainly due to the payment of market inputs.
(9) The increase in cash received from disinvestment refers to the withdrawal of certificates of deposits ofthe Company and the NCD of Kweichow Moutai Group Finance Co., Ltd..
(10) The increase in the cash received from investment income is mainly due to the increase in the intereston certificates of deposits received by the Company.
(11) The increase in the net cash received from disposal of fixed assets, intangible assets and other long-term assets is mainly due to the increase in the cash received from disposal of fixed assets in the currentperiod, compared with the prior period.
(12) The decrease in the cash paid to acquire and construct fixed assets, intangible assets and other long-term assets is mainly due to the decrease in the cash paid for capital construction projects in the currentperiod, compared with the prior period.
(13) The increase in cash paid for investments is mainly due to the increase in acquisition of NCDs by theCompany’s holding subsidiary Kweichow Moutai Group Finance Co., Ltd. and the Company’s additionalinvestment in industrial development fund, in the current period
(14) The decrease in the cash paid for other investing activities is mainly due to the decrease in the capitalconstruction performance bond refunded, compared with the previous period.
(15) The increase in the cash paid for other financing activities is mainly due to the increase in the cashfor lease fees in the current period, compared with the previous period.
(16) The increase in the effect of fluctuation in exchange rate on cash and cash equivalents refers to thedifference in foreign currency conversion caused by the translation of financial statements of overseasoperations of Kweichow Moutai Paris Trading Co., Ltd., a wholly-owned subsidiary of the Company, intothe functional currency statements.
(II) Reasons for significant changes of profit caused by non-core business
□Applicable √N/A
(III) Analysis of assets and liabilities
√Applicable □N/A
1. Assets and liabilities
Monetary Unit: RMB
Item | Amount by the end of this period | As % of total assets (%) | Amount by the end of last period | As % of total assets (%) | Change in percentage (%) | Explanation about any material change |
Cash and cash equivalents | 69,070,136,376.12 | 25.33 | 58,274,318,733.23 | 22.90 | 18.53 | |
Held-for-trading financial assets | 400,712,059.93 | 0.15 | N/A | Mainly the additional investment of Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company, in debt instruments | ||
Notes receivable | 13,933,440.00 | 0.01 | 105,453,212.00 | 0.04 | -86.79 | Mainly the decrease in the sales business with bank acceptance bills of the Company's wholly-owned subsidiary, Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. |
Accounts receivable | 60,373,410.41 | 0.02 | 20,937,144.00 | 0.01 | 188.36 | Mainly the sales of Kweichow Moutai Sales Co., Ltd., a controlling company of the Company, via an online platform where the system adopts the T+7 model for the settlement of payments for goods. |
Prepayments | 34,585,111.79 | 0.01 | 897,377,162.27 | 0.35 | -96.15 | Mainly the transformation from advanced land payments to intangible assets |
Redemptory Monetary Capital for Sale | 3,504,849,885.05 | 1.29 | N/A | The purchase of reverse repo of treasury bonds was made by Guizhou Maotai Group Finance Co., Ltd., a holding subsidiary of the company. | ||
Inventories | 46,435,185,061.53 | 17.03 | 38,824,374,236.24 | 15.26 | 19.60 | |
Other current assets | 71,403,906.57 | 0.03 | 160,843,674.42 | 0.06 | -55.61 | Mainly the decrease in input VAT retained |
Non-current assets maturing within one year | 2,123,601,333.33 | 0.83 | -100.00 | Mainly the maturity of certificates of deposits | ||
Loans and payments | 2,130,818,189.27 | 0.78 | 4,134,744,407.92 | 1.62 | -48.47 | Mainly the recovery of loans distributed to member units by the Company's holding subsidiary Kweichow Moutai Group Finance Co., Ltd. |
Debt investment | 5,323,002,071.02 | 1.95 | 380,685,319.09 | 0.15 | 1,298.27 | Mainly the purchase of |
bonds by Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company | ||||||
Fixed assets | 19,909,280,655.97 | 7.30 | 19,742,622,547.86 | 7.76 | 0.84 | |
Other non-current financial assets | 4,002,439,902.57 | 1.47 | N/A | The additional investment of the Company in industrial funds | ||
Other non-current assets | 109,563,497.23 | 0.04 | N/A | The newly-added informatization project in progress | ||
Non-current liabilities maturing within one year | 57,054,879.48 | 0.02 | 109,351,155.28 | 0.04 | -47.82 | The payment for rental expenses |
Deferred tax liabilities | 78,943,062.19 | 0.03 | 162,628,090.99 | 0.06 | -51.46 | The influence of the implementation of the Interpretation No. 16 of the Accounting Standards for Business Enterprises |
Other comprehensive income | -6,061,727.51 | -10,776,907.33 | N/A | The difference arising from the translation of financial statements of overseas operations of Kweichow Moutai Paris Trading Co., Ltd., a wholly-owned subsidiary of the Company, into the functional currency statements |
2. Main assets overseas
√Applicable □N/A
(1) Asset size
Including: overseas assets of RMB 87,432,153.36, accounting for 0.03% of the total assets.
(2) Description of overseas assets with a higher proportion
□Applicable √N/A
3. Restricted assets rights as of the end of this reporting period
□Applicable √N/A
4. Other description
□Applicable √N/A
(IV) Analysis of operating information in the industry
√Applicable □N/A
Analysis of operating information in the liquor production industry1 Industry profile
√Applicable □N/A
According to data from the National Bureau of Statistics and the China Alcoholic Drinks Association, in2023, the total production volume of liquor enterprises above designated size nationwide reached 4.492million kiloliters, a year-on-year decrease of 2.8%; sales revenue amounted to 756.3 billion yuan, anincrease of 9.7% year-on-year; and total profits reached 232.8 billion yuan, an increase of 7.5% year-on-year.
2 Production CapacityCurrent capacity
√Applicable □N/A
Main Factories | Designed Capacity | Actual Capacity |
Chinese Baijiu production workshop of Moutai | 42,795.00 | 57,204.11 |
Series liquor production workshop | 44,460.00 | 42,937.04 |
Note: (1) TheMoutai base liquor of Moutai liquor reached a designed production capacity of 42,795.00tons in 2023, with a year-on-year increase of 52.50 tons of base liquor production capacity. The newproduction capacity was put into operation in October 2023. Due to the production process characteristicsof Moutai liquor, it will be released in 2024. The base liquor of serial liquors reached a designed productioncapacity of 44,460.00 tons in 2023, with a year-on-year increase of 6,400.00 tons of base liquor productioncapacity. The new production capacity was put into operation in November 2023. Due to the productionprocess characteristics of the serial liquors, it will be released in 2024. (2) According to the practice of theCompany, the designed and actual production capacity in this report is measured in "ton".
Capacity under Construction
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Name of the Capacity under Construction | Planned investment amount | Amount invested in this reporting period | Accumulated investment amount |
30000-ton Moutai-flavored series liquor technical renovation project and its supporting facilities | 838,400.00 | 63,490.00 | 550,116.00 |
First Phase Construction Project of the "14th Five-Year Plan" Maotai-flavor Liquor Xishui Tongminba | 411,000.00 | 45,310.00 | 88,160.00 |
Technical transformation and construction project of Moutai Liquor during the 14th Five-Year Plan period | 1,551,600.00 | 120,203.00 | 120,288.00 |
Production capacity calculation standardsApplicable □N/AIn the above “Current capacity” table, the design capacity is calculated according to the production processrequirements, combined with the plant specifications and the number of cellars, and the actual capacity iscalculated according to the actual base liquor production yield in the reporting period.
3 Inventory at the end of the reporting period
√Applicable □N/A
Unit: Ton
Finished liquor | Semi-finished liquor (including base liquor) |
13,985.07 | 279,804.96 |
Note: The finished liquor is the Company’s packaged inventory stock (including Moutai-flavor seriesliquor).
Inventory Impairment Risk Warning
□Applicable √N/A
4 Product profile
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Product grade | Production (ton) | Change(%)Same Period | Sales (tons) | Change(%)Same period | Production-sales ratio (%) | Sales revenue | Change(%)same period | Main representing brand |
Moutai | 57,204.11 | 0.69 | 42,109.50 | 11.10 | 12,658,906.67 | 17.39 | Moutai |
Other series liquor | 42,937.04 | 22.41 | 31,164.54 | 2.94 | 2,062,992.96 | 29.43 | Moutai Wangzi liquor, Moutai 1935 liquor, Han Jiang liquor, Lai Mao liquor |
Note: (1) In order to ensure the sustainable development of the Company, a certain amount of base liquorneeds to be retained every year. According to the production process, it takes Maotai liquor at least 5 yearsof cellaring since its production before in can be released from the factory. (2) Moutai is a blend of baseliquor of different years, different rounds and different concentrations. It is a perfect combination oftechnology and art. Therefore, the base liquor of a certain year may appear as a product in the next severalyears. (3) The Company regards quality as its life, adheres to quality first, adheres to the spirit ofcraftsmanship, and adheres to the principle of “honoring the principles, abiding by the rules, sticking tothe craftsmanship, cellaring enough liquor to age, and not selling young liquor”. The production of Moutaiis of natural solid-state fermentation, brewed with traditional craftsmanship, and therefore the productionyield has certain volatility. (4) Based on the above reasons, the production and sales rate of Moutai baseliquor cannot be accurately calculated. The product formation process of series liquor is similar to that ofMoutai.
Product grading standards
√Applicable □N/A
Graded by the quality of the product.
Changes in the product structure and business strategy
□Applicable √N/A
5 Raw material purchase
(1) purchase model
√Applicable □N/A
The sorghum used in Moutai liquor was purchased in the "company + local government + supplier +cooperative or farmer" model, while the wheat was purchased in the "company + supplier + cooperativeor farm" model. Other raw materials and packaging materials were purcahsed from the market throughcentralized procurement according to the company's production and sales plans.
(2) purchase amount
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Raw materials type | Purchase amount in this period | Purchase amount in last period | as % in total purchase amount |
Liquor brewing raw materials | 352,140.58 | 248,398.92 | 44.15 |
Packaging materials | 396,702.84 | 290,243.05 | 49.73 |
Energies | 35,724.12 | 48,982.94 | 4.48 |
Workshop auxiliary materials | 13,122.59 | 6,898.38 | 1.36 |
6 Sales
(1) Sales model
√Applicable □N/A
The Company’s products are sold through direct selling and distributor channels. Direct sales channelsrefer to self-operated channels and "i Moutai" digital marketing platform channel, and wholesale agencychannels refer to social distributors, supermarkets, e-commerce and other channels.
(2) Sales channel
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Channel type | Sales amount in this period | Sales amount in last period | Sales volume in this period (ton) | Sales volume in last period (ton) |
Direct selling | 6,723,287.69 | 4,937,873.77 | 15,634.95 | 11,186.57 |
Wholesale agency | 7,998,611.94 | 7,439,359.47 | 57,639.09 | 56,989.75 |
(3) Regional situation
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Region Name | Sales revenue in this period | Sales revenue in last period | as % in the total amount | Sales volume in this period (ton) | Sales volume in last period (ton) | as % in the total volume |
Domestic | 14,286,888.58 | 11,953,275.29 | 97.05 | 71,295.43 | 66,162.41 | 97.30 |
Overseas | 435,011.05 | 423,957.95 | 2.95 | 1,978.61 | 2,013.91 | 2.70 |
Regional division standards
□Applicable √N/A
(4) Distributor Situation
√Applicable □N/A
Unit: unit
Region Name | Number of distributors by the end of the reporting period | Number increased in the reporting period | Number decreased in the reporting period |
Domestic | 2080 | 1 | 5 |
Overseas | 106 | 1 |
Explanation
□Applicable √N/A
Management of distributors
□Applicable √N/A
(5) Online-sales situation
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Online sales platform | Product grade of online sales | Revenue from sales in the current period | Revenue from sales in the previous period | YoY (%) | Gross profit margin (%) |
"i Moutai" digital marketing platform channel | Medium and high-grade liquor | 2,237,432.35 | 1,188,270.28 | 88.29 | 96.09 |
Other digital marketing platforms | Medium and high-grade liquor | 183,125.55 | N/A | 95.95 |
Future online business strategy
□Applicable √N/A
7 Analysis of the Company’s revenue and cost
(1) he composition of the company’s main business by different types
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Operating revenue | Change(%) | Operating costs | Change(%) | Gross profit rate(%) | Change(%) |
By class of product | ||||||
Moutai | 126,589,066,691.89 | 17.39 | 7,445,470,669.11 | 18.83 | 94.12 | -0.07 |
Other series liquor | 20,629,929,589.15 | 29.43 | 4,174,732,984.21 | 15.00 | 79.76 | 2.54 |
Subtotal | 147,218,996,281.04 | 18.94 | 11,620,203,653.32 | 17.42 | 92.11 | 0.11 |
By sales channel | ||||||
Wholesale agency | 79,986,119,397.90 | 7.52 | 8,569,360,111.66 | 6.82 | 89.29 | 0.07 |
Direct selling | 67,232,876,883.14 | 36.16 | 3,050,843,541.66 | 62.78 | 95.46 | -0.74 |
Subtotal | 147,218,996,281.04 | 18.94 | 11,620,203,653.32 | 17.42 | 92.11 | 0.11 |
By regional segment | ||||||
Domestic | 142,868,885,823.91 | 19.52 | 11,280,212,551.30 | 18.01 | 92.10 | 0.10 |
Overseas | 4,350,110,457.13 | 2.61 | 339,991,102.02 | 0.76 | 92.18 | 0.14 |
Subtotal | 147,218,996,281.04 | 18.94 | 11,620,203,653.32 | 17.42 | 92.11 | 0.11 |
Explanation
□Applicable √N/A
(2) Costs
√Applicable □N/A
Explanation
√Applicable □N/A
See Statement of Cost, Analysis of main business, Section III Management’s Discussion and Analysis.
(V) Analysis of investment situationTotal investment
□Applicable √N/A
1. Significant equity investment
□Applicable √N/A
2. Important non-equity investment
√Applicable □N/A
Non raised fund projects (projects with total investment exceeding 10% of the Company’s audited netassets at the end of last year)According to the resolution of the Company’s 2011 annual shareholders’ meeting, the Company hasplanned to invest RMB 3,583.16 million in the construction of Moutai-flavor series liquor makingtechnical transformation project and supporting facilities project. By the end of the reporting period, atotal of RMB 2,053.55 million had been invested.
3. Financial assets measured at fair value
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type of assets | Amount at the beginning of the period | Profit or loss from changes in fair value in the current period | Accumulated changes in fair value included in equity | Provision for impairment made in the current period | Purchase amount in the current period | Selling / redemption amount in the current period | Other changes | Amount at the end of the period |
Bonds | 24,072,241.71 | 3,900,000,000.00 | 3,523,360,181.78 | 400,712,059.93 | ||||
Private equity | 2,439,902.57 | 4,000,000,000.00 | 4,002,439,902.57 | |||||
Total | 26,512,144.28 | 7,900,000,000.00 | 3,523,360,181.78 | 4,403,151,962.50 |
Portfolio investment
□Applicable √N/A
Description of portfolio investment
□Applicable √N/A
Private equity investment
√Applicable □N/A
1. Moutai Jinshi (Guizhou) Industrial Development Fund. The filing of the private equity for record hasbeen completed. Visit the site: www.sse.com.cn. and read the Company's announcements (Lin 2023-014and Lin 2023-028) for details;
2. Moutai Zhaohua (Guizhou) Industrial Development Fund. The filing of the private equity for recordhas been completed. Visit the site: www.sse.com.cn. and read the Company's announcements (L 2023-014 and L 2023-028) for details.
Investment in derivatives
□Applicable √N/A
4. Specific progress of major assets reorganization and integration during the reporting period
□Applicable √N/A
(VI) Specific progress of major assets reorganization and integration during the reporting period
□Applicable √N/A
(VII) Analysis of major holding companies
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Company name | Industry | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
Kweichow Moutai Sales Co., Ltd. | Liquor, beverages and tea wholesale | 1,000.00 | 8,774,200.15 | 5,457,173.45 | 12,225,461.71 | 5,680,845.69 | 4,259,628.69 |
(VIII) Structured entities controlled by the Company
□Applicable √N/A
VI. Discussion and analysis of the Company’s future development(I) Pattern and trend in the industry
√Applicable □N/A
1. Industry pattern and trend
In the macroscopic aspect, the basic trend of China's economic recovery with a long-term improvementhas not changed and will not change. With the strengthening of macro-control, which has promoted thecontinuous improvement of economic operation, the effect of promoting consumption policies continuesto appear, the consumption scene continues to expand, residents' income continues to grow, andconsumption will continue to maintain steady and rapid growth, and these are conducive to liquorconsumption. In terms of the industry, since 2016, the national liquor production and sales have declinedyear by year, and the liquor industry has entered a period of "stock competition", where favorableconditions are stronger than the unfavorable factors, though the industry has been facing many problems,and the overall development trend of the industry is good.
2. Competitive advantages of the Company
First, excellent product quality. The Company adheres to the principle that quality is the soul of life aswell as the concept of "five-artisan quality", and has implemented strict quality control throughout the fulllife cycle from "improved variety" to "products with aesthetic feeling". The Company vigorouslymaintains the ecological uniqueness of the balanced producing areas, and innovates and inherits thescientific process method and engineering method of selected materials, excellent process and exquisiteutensils. Each batch of products uses the long-term cellaring base resources and the diversified base liquorstyles created by exquisite blending techniques to form the typical flavor and quality expressioncharacteristics of Kweichow Moutai. The Company strove for excellence and refinement in the 30processes and 165 links, and created the excellent quality integrating aesthetic senses, aesthetic perception,aesthetic feelings, and beauty aesthetic.
Second, high brand reputation. After hundreds of years, Moutai has grown from a local product thatnobody cares about in 1915 to the world's first brand of hard liquor with the single product revenue ofRMB over 100 billion and a market value of over RMB one trillion. The Company strove to build a brandmatrix with the Party building brand as the guide. It constantly made the brand as a brand with productswith aesthetic feeling, optimized services, real public welfare, refined activity, and outstandingcraftsmanship, continuously enhanced the kinetic energy of the brand, highlighted the brand tension ofMoutai, greatly enhancing the brand influence and reputation, and constantly increasing the brand value.
Third, strong cultural radiation. Moutai culture was derived from the farming civilization that "Pu peopleare good at brewing". It developed continuously in modern civilization. A “nine series” cultural systemwas perfected and formed, leading the development trend of China liquor culture, which became the acmeof Chinese liquor culture. The Company took the brewing tradition of "co-brewing by man and nature"and the craftsman spirit of pursuing excellence as the core, and fully combined the seasonal rhythm tocarry out a series of activities of 24 solar terms, highlighting the cultural characteristics of "obedience tothe heaven and respect to the man" and expanding and enriching the cultural extension of Moutai. It builta communication matrix of “Mass response online and offline", told a good brand story, spread the voiceof Moutai, and made the unique Moutai culture sparkling.
Fourth, unique traditional processes. The Company has a unique brewing process that has been passeddown for thousands of years, insisting on the brewing of Moutai according to the weather changes andmaking the brewing more traditional. The Company has comprehensively established a quality evaluationsystem for raw materials of brewing, ensuring the high-quality supply of sorghum and wheat from theaspects of origin and quality indicators, and highlighting the "selected materials"; followed the traditionalprocess of taking a year as one production cycle, stepping on the winter wheat during the Dragon BoatFestival, feeding on the Double Ninth Festival, brewing with pure grain, solid fermentation in an openmanner, long-term storage in pottery jars, and blending liquor with liquor to display "excellent process";adhere to the supply of traditional elements, such as drying hall of concrete, fermentation warehouse madewith small green tile, pit stone and purple mud, to show the "exquisite utensils"; Adhere to both inheritanceand innovation, and make innovation more modern. The Company continued to enhance the originalinnovation ability, deeply analyzed the scientific connotation of traditional techniques, and concluded theprocess system of koji-making, liquor-making, storage and blending, and established five core technicalsystems to keep the vitality of traditional process methods forever.
Fifth, unreplicable ecological environment. Special landform, climate environment, high-quality brewingwater source, unique origin protection and unrepeatable microbial colonies are the unique characteristicsof the core producing area of Kweichow Moutai liquor with the area of 15.03 square kilometers. Byimplementing the "five special projects" of increasing high-quality water resources, improving air quality,conservation of water and soil, protecting microorganism and maintaining ecosystem balance, theCompany carried out the "five special actions" of energy saving, carbon reduction and efficiencyimprovement, green product design, green transformation of industrial chain, green scientific andtechnological innovation and green low-carbon life, and built a life community of “mountain, water, forest,soil, river and microorganism” to fully maintain the ecosystem balance on which Moutai depends. In theproduction and operation, the Company also extended the maintenance of natural ecology to commercialecology, and guided relevant parties to form a tough, agile and efficient production, supply and marketingecosystem with excellent "Moutai standards" to jointly pursue the goal of specialization, greening anddigitalization of modernization.
(II) Development strategy
√Applicable □N/A
2024 will be a crucial year to achieve goals of the "14th Five-Year Plan". The Company will adhere to theguidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughlystudy and implement the spirit of the 20th Party Congress and the important speech addressed by theGeneral Secretary Xi Jinping during the inspection in Guizhou, the spirit of the Party Congress of theGroup company and the overall deployment, adhere to the overall high-quality development, activelyintegrate into the new development pattern, uphold the concept of "quality is the soul of life", focus on thegroup company's targets of "double world-leading, three breakthroughs and five spans", deeply implementESG concept and comprehensively optimize strategy, budget, process, performance and risk management,continue to take the "five-line" high-quality development road by taking Moutai aesthetics as its valueconnotation, attach importances to the main business of "liquor", strengthen the three driving forces ofreform, opening up and innovation, promote the integration of the innovation chain, industrial chain andtalent chain, highlight the three tasks of value creation, value management and value sharing, strengthenthe strategic coordination, promote work coordination and fully advance the high-quality developmentand modernization of Moutai.
(III) Business plan
√Applicable □N/A
The main objective for 2024 is to achieve an increase of approximately 15% in total operating revenuecompared to the previous year and complete fixed asset investment of RMB 6.179 billion. Focusing onthe annual targets and tasks, the following key works will be emphasized:
(I) Uphold the "blue line" path and continue the strong momentum of our main business. The first is tofocus on enhancing industry leadership, brand influence, and channel control, continuously consolidatethe position of Moutai liquor as a 100 billion level key product, and continuously enhance the "leadership"of the high-end market, and strengthen the brand building of Moutai-flavor liquor enterprises, andconsolidate the cultivation and promotion of key product brands. The second is to uphold the principlethat quality is the soul of life, continue to practice the "five craftsmen" quality concept, improve the "365"quality management system (the party congress is included in the green line), and continue to improve theprogressiveness and applicability of the "Moutai Standard" in all links of the whole chain from rawmaterial supply to production quality. The third is to continue to practice the "Five-in-One MarketingMethod", uphold the "four ends" of products, channels, brands and terminals, and jointly build the "threeforms" of terminal form, business format and ecology, and make endless efforts to explore new marketswith endless beauty, and strengthen the reform of international market institutions and team building, anduphold the principle of "one country, one policy", and enhance the level of internationalization. The fourthis to uphold the high starting point planning, high standard design, high-quality construction, and high-level management, accelerate the construction of major projects such as Zhonghua Village Moutai LiquorTechnical Renovation Project Moutaiin "14th Five Year Plan", Packaging Logistics Park in TanchangSubdistrict Office, and the project in Tongmin Town of Xishui County, and strengthen the life-cyclemanagement of projects.
(II) Uphold the "green line" path and create sustainable development samples. The responsibilities andfunctions of the ESG Promotion Committee will be leveraged fully to develop an overall plan, and striveto improve the overall evaluation level. In terms of environment, every effort is made to deeply implementthe concept of the life community of "mountains, waters, forests, soil, rivers and microorganisms", focuson the goal of "carbon peaking and carbon neutrality", continuously optimize the layout of the "productionspace, living space and ecological space" in the park, strengthen water conservation, drainage, watertreatment, and reuse of reclaimed water, focus on energy conservation and energy structure adjustment,promote the research and application of advanced green, low-carbon, and energy-saving technologies, andbuild a national level "clear waters and green mountains are as good as mountains of gold and silver"practice and innovation base with high quality. In terms of society, every effort is made to lead the industryin improving technical standards and promoting the integration of occupational health and safety for allemployees based on key aspects such as product quality and safety, occupational health and safety,stakeholder interests, and responsible marketing, and actively engage in social welfare, cultural protection,and rural revitalization, vigorously advocate rational drinking, adhere to integrity and innovation, and tellthe story of Chinese liquor culture well. In terms of governance, every effort is made to focus on corporategovernance, business ethics, risk management, and other aspects, perfect corporate governance from theperspective of "Shareholders' Meeting, Board of Directors, Supervisory Board and Senior Management",and improve the "six major risks" management mechanism, and deepen the digital transformation in areassuch as business and finance integration, decision-making system of “major issues, importantappointments and removals, major projects, and the use of large amounts of money”, audit supervision,and smart parks, empower ESG implementation and effectiveness, drive partners to jointly practice ESGconcepts, and comprehensively enhance value creation capabilities.
(III) Uphold the "white line" path and enhance the momentum of reform and innovation. In terms oftechnological innovation, every effort is made to deeply practice the beauty of "scientific inheritance andtechnological innovation", focus on "making inheritance more traditional and innovation more modern",continuously strengthen the construction of "two rooms, two centers, and one station", vigorously promotethe corporatization of technology centers, strengthen the introduction of high-level talents, improve thetalent training and incentive mechanism system, and build a high-quality team of scientific andtechnological innovation talents. In terms of digital empowerment, in accordance with the top-level planof "Smart Moutai 2.0", every effort is made to implement projects such as digital marketing system, supplychain management system, and total quality management system, further open up the integrated supply
chain system, promote the scale application of industrial Internet demonstration scenarios, promote "one-code management", integrate anti-counterfeiting traceability, industrial chain collaboration and otherscenario applications, and improve the ability to link upstream and downstream industries. In terms ofdeepening reform, every effort is made to firmly grasp the opportunity of the new round of state-ownedenterprise reform and upgrading actions, adhere to benchmarking against world-class standards,continuously optimize and improve the strategic management system, comprehensively strengthen processmanagement, operate organizational performance indicator measurement and analysis and a newperformance evaluation system, implement salary system reform to enhance the modern corporategovernance ability and level. In terms of talent team construction, every effort is made to coordinate thedevelopment of the company's human resources plan, and improve the equivalent density of professionaltalents by expanding channels for attracting and selecting talents, increasing training and education effortsfor talents, highlighting employment effects, and improving talent retention mechanisms, and promote thedevelopment of talent in enterprises, and promote mutual progress between talents and enterprises.
(IV) Uphold the "purple line" path and build a highland of brand culture. Every effort is made to upholdthe "Moutai Aesthetics" as the corporate philosophy, deeply explore corporate culture and brand culture,continuously promote the construction of the "Nine Series" of Moutai culture, continuously enriched theexpression forms, value connotations, and experience scenes of Moutai culture, and accumulated strongcultural momentum, and continue to explore the essence of traditional Chinese culture, such as the 24 solarterms, zodiac signs, and traditional festivals, and promote the organic integration of corporate culture,product culture, traditional culture, and Moutai culture, and carefully develop cultural and creativeproducts, and hold traditional activities such as Qingming Thanksgiving, Dragon Boat Festival wheatworship, and Double Ninth Festival liquor worship to high standards, and apply the theme colors of theChinese New Year in various activities, continue to conduct research on the color system of Easternaesthetics, and promote the creative transformation and innovative development of Chinese traditionalculture, liquor culture, and Moutai culture, and continue to organize cultural IP activities such as "MoutaiFuns Carnival" and "Dinner Night" to tell the story of Moutai well, and actively integrate into the national"the Belt and Road" initiative and the "Brand Power Project", take the initiative to appear at importantconferences and activity platforms at home and abroad, participate in global dialogue, output Moutai'sviews and convey Moutai's voice.
(V) Uphold the "red line" path and ensure the essential safety of enterprises. Every effort is made to focuson the "six major risks" and promote the construction of an enterprise risk management system from top-level design to post end comprehensive risk management, to ensure the safe and stable operation ofproduction and operation. In terms of safety production, every effort is made to deepen the riskclassification and dynamic management of safety production around the seven major areas of fire,electricity, soil, housing, water, vehicles, and materials, and continuously consolidate the achievements ofspecial inspections and rectification of safety production, and implement the "Smart Security" and "SmartFire Protection" projects, integrate the construction of civil defense, physical defense, and technicaldefense, and comprehensively improve the professional level of safety management. In terms of compliantoperation, every effort is made to focus on key tasks such as legal governance, risk prevention, compliancemanagement, rights protection, and team building, further improve the five systems of legal construction,and continuously enhance the five capabilities of governing enterprises in accordance with the law, andcontinue to perfect the risk management system, improve the construction of risk libraries in key areas,and timely and effectively prevent and resolve various risk challenges.
(IV) Possible confronting risk
√Applicable □N/A
The first is the risk of macroeconomic downturn; The second is security risk; The third is public opinionrisk; The fourth is environmental protection risk.
(V) Others
□Applicable √N/A
VII. The Company’s failure to disclose the information and reasons in accordance with thestandards due to non-application of the standards or special reasons such as state secrets and tradesecrets
□Applicable √N/A
Section IV Corporate GovernanceI. Description of the related situation of corporate governance
√Applicable □N/A
In strict accordance with the Company Law, the Securities Law, the Code of Corporate Governance forListed Companies and other laws and regulations and the requirements of regulatory documents related tocorporate governance, the Company has established and improved the corporate governance structure incombination with the actual situation of the Company to standardize the Company's operation. TheCompany has the party committee, the general meeting of shareholders, the board of directors, the boardof supervisors and the management. It implements the leadership system of "two-way entry and cross-service" for members of party committee and governance institutions, thus forming a corporategovernance system with their own responsibilities, coordinated operation and effective checks andbalances. The Company continued to optimize the governance mechanism, giving full play to the role ofthe general meeting of shareholders as the Company's authority, the role of the Party Committee indirection control, overall situation management and implementation promotion, the board of directors indecision-making and risk prevention as well as the role of the role of the management in operationmanagement and strong management, and strengthening the supervision function of the board ofsupervisors.
1. General meeting of shareholders.
In accordance with the requirements of the Articles of Association and the Rules of Procedure of theGeneral Meeting of Shareholders of the Company, the Company convened general meetings ofshareholders in a standardized manner to ensure that all shareholders, especially small and mediumshareholders, may enjoy equal status and can fully exercise their rights, and hired legal advisers to issuelegal opinions for the general meeting of shareholders. In 2023, the Company held three general meetingsof shareholders, deliberated and approved 17 proposals, and all resolutions had been seriouslyimplemented.
2. Board of Directors
At present, the Board of Directors of the Company consists of seven directors, including three independentdirectors and one employee director. The composition of the Board of Directors meets the requirementsof laws and regulations. The Board of Directors of the Company has five special committees, namely,Strategy Committee, Audit Committee, Risk and Compliance Management Committee, NominationCommittee, Remuneration and Appraisal Committee, with clear division of labor, clear responsibilitiesand effective operation. All directors of the Company can perform their duties in good faith, loyalty,diligence, professionalism and due diligence from the interests of the Company and all shareholders, andearnestly safeguard the legitimate rights and interests of the Company and all shareholders.
3. Board of Supervisors
At present, the Board of Supervisors of the Company is composed of three supervisors, one of whom isan employee supervisor. The composition of the Board of Supervisors meets the requirements of laws andregulations. The Board of Supervisors of the Company can be diligent and responsible, exercise thefunction of supervision and inspection in the spirit of being responsible to shareholders, supervise theCompany's financial status and operation, related transactions and the performance of duties by seniorexecutives, and safeguard the legitimate rights and interests of the Company and all shareholders.
4. Situation of the work of the management
The management of the Company carried out daily production and operation matters according to thestatutory authority and the authorization of the board of directors, and it was responsible for organizingand implementing the resolutions of the board of directors, and reporting the same to the board of directors.
In 2023, the production and operation, reform and development were successfully completed, and the roleof operation, implementation and management worked effectively.
5. Information on controlling shareholders and listed companies.
Controlling shareholders shall exercise the rights and assume the obligations of the investor in strictaccordance with the requirements of the Company Law. The Company has independent business and self-management ability. The controlling shareholders and the listed companies are independent in business,personnel, assets, institutions and finance. The Board of Directors, the Board of Supervisors and internalinstitutions of the Company operate independently, ensuring that major decisions of the Company wouldbe made and implemented independently by the Company.
6. Information disclosure of the Company
The Company shall disclose relevant information in a true, accurate, complete, timely and fair manner instrict accordance with laws, regulations, Articles of Association and the Administrative Measures of theCompany for Information Disclosure, and ensure that all shareholders and other stakeholders would haveequal access to company information. During the reporting period, the Company disclosed 42 temporaryannouncements and 4 regular reports. After comprehensive evaluation by Shanghai Stock Exchange, theevaluation result of the Company's information disclosure from 2022 to 2023 is A (Excellent).
7. Related transactions
There are related transactions between the Company and its controlling shareholder, China KweichowMoutai Distillery (Group) Co., Ltd. and other related parties. These related transactions are carried out toensure the normal production, operation and business development of the Company. The specific contentswere regulated through relevant agreements. The legal procedures are fulfilled, and the principles ofopenness, fairness and impartiality were followed. Hence, there is no adverse impact on the operation ofthe Company.
8. Construction of internal control.
During the reporting period, the Company continued to carry out internal control related work inaccordance with the requirements of the Basic Rules for Enterprise Internal Control, and kept promotinginternal control construction, evaluation, auditing and other related work to ensure the realization of theCompany's internal control objectives and further improve the corporate governance level.
Whether there are significant differences between corporate governance and laws, administrativeregulations and the provisions of CSRC on corporate governance of listed companies; If there is anysignificant difference, the reasons shall be given
□Applicable √N/A
II. The specific measures taken by the controlling shareholders and actual controllers of thecompany to ensure the independence of the company's assets, personnel, finance, institutions andbusiness, as well as the solutions, work progress and follow-up work plans that affect theindependence of the company work progress and follow-up work plans that affect the independenceof the company
□Applicable √N/A
The situation of the controlling shareholders, actual controllers and other units under their controlengaged in the same or similar business as the company, as well as the impact of great changes in theindustry competition or competition on the Company, the solution measures taken, solution progress andsubsequent solution plans
□Applicable √N/A
III. Introduction of shareholders’ Meeting
Session of the meeting | Date of convening | Query index of the designated website published in the resolution | Date of disclosure of the publication of | Meeting resolution |
the resolution | ||||
Annual General Meeting of Shareholders of 2022 | 2023-06-13 | The Shanghai Stock Exchange www.sse.com.cn | 2023-06-14 | Please refer to the Announcement on Resolution of 2022 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2023-016) for details. |
First extraordinary general meeting of shareholders in 2023 | 2023-09-07 | The Shanghai Stock Exchange www.sse.com.cn | 2023-09-08 | Please refer to the Announcement on Resolution of the First Extraordinary General Meeting of Shareholders of Kweichow Moutai in 2023 (Announcement No.: Lin 2023-029) for details. |
Second extraordinary general meeting of shareholders in 2023 | 2023-12-06 | The Shanghai Stock Exchange www.sse.com.cn | 2023-12-07 | Please refer to the Announcement on Resolution of the Second Extraordinary General Meeting of Shareholders of Kweichow Moutai in 2023 (Announcement No.: Lin 2023-039) for details. |
Preferred shareholders with restored voting rights request an extraordinary general meeting ofshareholders
□Applicable √N/A
Description of the shareholders’ general meeting
□Applicable √N/A
IV. Situation of directors, supervisors and senior officers(I) Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period
√Applicable □N/A
Unit: per share
Full Name | Position | Gender | Age | Start Date of Term | Termination date of term | Number of shares held at the beginning of the year | Number of shares held at the end of the year | The increase or decrease of shares within the year | Cause of The increase or decrease of shares | Total pre-tax remuneration obtained from the Company during the reporting period (RMB 0'000) | Whether to get paid from the related parties of the company |
Ding Xiongjun | Secretary of the party committee | Male | 49 | September 28, 2022 | 0 | Yes | |||||
Chairman, director | September 24, 2021 | ||||||||||
Wang Li | Deputy Secretary of CPC | Female | 51 | August 17, 2023 | 0 | Yes | |||||
Director | September 07, 2023 | ||||||||||
Acting as general manager | August 19, 2023 | ||||||||||
Guo Tianyong | Independent director | Male | 55 | June 16, 2022 | 20 | No | |||||
Sheng Leiming | Independent director | Male | 53 | June 16, 2022 | 20 | No | |||||
Wang Xin | Independent director | Male | 46 | December 06, 2023 | 1.41 | No | |||||
Liu Shizhong | Independent director | Male | 48 | June 16, 2022 | 0 | Yes | |||||
Xie | Employee | Female | 41 | October 07, | 96.27 | No |
Qinqing | director | 2022 | |||||||||
You Yalin | Deputy Secretary of CPC, and chairman of the trade union | Male | 54 | October 07, 2022 | 84.17 | No | |||||
Chairman of the Board of Supervisors, Supervisor | March 20, 2020 | ||||||||||
Li Qiangqing | Supervisor | Male | 42 | June 13, 2023 | 85.86 | No | |||||
Wen Yong | Employee supervisor | Male | 41 | June 13, 2023 | 81.39 | No | |||||
Tu Huabin | Member of the party committee | Male | 48 | November 03, 2022 | 71.12 | Yes | |||||
Deputy General Manager | February 27, 2020 | ||||||||||
Wang Xiaowei | Member of the party committee | Male | 52 | November 03, 2022 | 71.12 | Yes | |||||
Deputy General Manager | February 27, 2020 | ||||||||||
Zhong Zhengqiang | Member of the party committee | Male | 52 | November 03, 2022 | 83.94 | No | |||||
Deputy General Manager | July 13, 2015 | ||||||||||
Jiang Yan | Member of the party committee | Female | 46 | November 03, 2022 | 84.18 | No | |||||
Deputy General Manager, Chief Financial | November 15, 2021 |
Officer | |||||||||||
Secretary of the Board of Directors | January 25, 2022 | ||||||||||
Li Jingren | Deputy Secretary of CPC | Male | 59 | November 03, 2022 | August 17, 2023 | 0 | Yes | ||||
Director | November 28, 2018 | August 19, 2023 | |||||||||
Acting as general manager | July 02, 2019 | ||||||||||
Jiang Guohua | Independent director | Male | 52 | June 16, 2022 | December 06, 2023 | 15 | No | ||||
Che Xingyu | Supervisor | Male | 56 | June 10, 2020 | June 13, 2023 | 82.28 | No | ||||
Liu Chenglong | Employee supervisor | Male | 46 | June 10, 2020 | June 13, 2023 | 92.17 | No | ||||
Total | / | / | / | / | / | / | 888.91 | / |
Descriptions: 1. The remunerations obtained by the above-mentioned directors (excluding independent directors), supervisors and senior executives refer to the totalremunerations before tax they obtained from the Company during the reporting period, including the basic annual pay (or basic salary) for individual and the salary(or bonus) for performance as well as the social security funds, enterprise annuity, supplementary medical insurance premium and housing provident funds paid bythe Company. 2. The remunerations obtained by independent directors refer to all subsidies before tax obtained from the Company durting the reporting period. 3.Ding Xiongjun, Wang Li and Li Jingren obtained their remunerations from Moutai Group, the controlling shareholder of the Company, other than the Company; LiuShizhong obtain the remuneration from a subsidiary of Moutai Group, the controlling shareholder of the Company, other than the Company. 4. Tu Huabin and WangXiaowei have received compensation from Moutai Group, the controlling shareholder of the company, since September 2023, and do not receive compensation fromthis company.
Full Name | Main work experience |
Ding Xiongjun | Served as the Deputy Secretary General of Guizhou Provincial Government, member of the Party Group of the General Office, Deputy Director of the Office of the Leading Group for Continuing the Reform Comprehensively of Guizhou Provincial Party Committee, member of the Standing Committee of the Municipal Party Committee of Bijie, Guizhou Province, Deputy Mayor (in charge of the routine work of the municipal government), Party Secretary and Director of Guizhou Energy Administration. Currently serves as the secretary of the Party Committee, Chairman of the Board of Directors and director of China Kweichow Moutai Distillery (Group) Co., Ltd., secretary of the Party Committee, Chairman of the Board of Directors and director of Kweichow Moutai Co., Ltd., and Chairman of the Board of Directors and director of Moutai College. |
Wang Li | Had been the Deputy General Manager and Chief Engineer of China Kweichow Moutai Distillery (Group) Co., Ltd., as well as the Deputy General Manager and Chief Engineer of Kweichow Moutai Co., Ltd. Currently, he serves as the Deputy Secretary of the Party Committee, Vice Chairman, Director, and General Manager of China Kweichow Moutai Distillery (Group) Co., Ltd., and the Deputy Secretary of the Party Committee, Director, and Acting General Manager of Kweichow Moutai Co., Ltd. |
Guo Tianyong | Had served the People's Bank of China, Yantai Branch. Currently serves as a professor and doctoral supervisor at the School of Finance of the Central University of Finance and Economics, an independent non-executive director in Ping An Healthcare and Technology Company Limited, an independent director in Ping An Bank Co., Ltd. and an independent director in Kweichow Moutai Co., Ltd. |
Sheng Leiming | Had served as a lawyer in Shanghai Zhongmao Law Firm. Currently serves as a lawyer in Beijing Guantao (Shanghai) Law Firm, the vice president of All-China Lawyers Association, and the independent director of Shanghai Zhenhua Heavy Industries Co., Ltd., Tsingtao Brewery Co., Ltd., FSG, Shanghai United Imaging Healthcare Co., Ltd. and Kweichow Moutai Co., Ltd.. |
Wang Xin | Had been a teacher in CUHK (Chinese University of Hong Kong). Currently serves as the head of the Department of Accounting and Law and the accounting professor at the School of Economics and Management (SEM) of the University of Hong Kong, and the independent non-executive director in Shoucheng Holdings Limited. and the independent director of Kweichow Moutai Co., Ltd.. |
Liu Shizhong | Served as the director of the Department of Legal Intellectual Property Protection of China Kweichow Moutai Distillery (Group) Co., Ltd. and the director of the Department of Legal Intellectual Property Protection of Kweichow Moutai Co., Ltd. Currently serves as the Party Secretary and Chairman of the Board of Directors of Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd., Chairman of the Board of Directors of Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. and director of Kweichow Moutai Co., Ltd. |
Xie Qinqing | Served as the member of the Party Committee, secretary of the Disciplinary Committee and chairman of the Board of Supervisors of Kweichow Moutai-Flavor Liquor Marketing Co., Ltd., and deputy secretary of party committee, director and chairman of the labor union of Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. Currently serves as the director of the Enterprise Management Department of China Kweichow Moutai Distillery (Group) Co., Ltd. and the employee director and Director of the Enterprise Management Department of Kweichow Moutai Co., Ltd. |
You Yalin | Served as the assistant to the general manager, director of the Party Committee Office, secretary of the Party Committee, director of the National Security Office, director of the Confidentiality Office and director of the Office for Complaint Letter and Visit of China Kweichow Moutai Distillery (Group) Co., Ltd. Currently serves as the Deputy Secretary of the Party Committee, Chairman of the Board of Supervisors, supervisor and chairman of the labor union of Kweichow Moutai Co., Ltd. |
Li Qiangqing | Had been the deputy director of the general office, deputy director of the Party Committee Office, director of the Office of the Board of Directors and the director of the Digital and Information Management Center in China Kweichow Moutai Distillery (Group) Co., Ltd., and the member and deputy secretary of the party committee, director and the General Manager of Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. Currently serves as the member of the Committee for Discipline Inspection, director of the Party Committee Office (General Office of the Company), the member of the party committee and permanent deputy secretary of Kweichow Moutai Co., Ltd. |
Wen Yong | Had been the principal staff member at level 1 and the researcher at level 4 of Guizhou Provincial Party Committee Office under the Chinese Communist Youth League, the deputy head of the Legal and Compliance Department of China Kweichow Moutai Distillery (Group) Co., Ltd. and the deputy head of the Legal and Compliance Department of kweichow Moutai Co., Ltd. Currently serves as the employee supervisor and the head of the Legal and Compliance Department of Kweichow Moutai Co., Ltd. |
Tu Huabin | Served as the general manager assistant, director of the Production Management Department, leader of New Workshop Preparatory Group and secretary of the party branch of production of Kweichow Moutai Co., Ltd., general manager assistant of China Kweichow Moutai Distillery (Group) |
Co., Ltd., deputy secretary of Party Committee, vice chairman of the Board of Directors and general manager of Kweichow Moutai Distillery (Group) Xijiu Co., Ltd., and general manager of Kweichow Moutai Co., Ltd. Heyixing Liquor Branch. He is currently a member of the Party Committee and Deputy General Manager of China Kweichow Moutai Distillery (Group) Co., Ltd., and a member of the Party Committee and Deputy General Manager of Kweichow Moutai Liquor Co., Ltd. | |
Wang Xiaowei | Served as the deputy secretary of the Party branch and deputy director of the fourth liquor-making workshop of Kweichow Moutai Co., Ltd., the secretary of the Party branch and deputy director of the 23rd liquor-making workshop of Kweichow Moutai Co., Ltd., and the secretary of the Party branch and deputy director of the 25th liquor-making workshop of Kweichow Moutai Co., Ltd. He is currently a member of the Party Committee and Deputy General Manager of China Kweichow Moutai Distillery (Group) Co., Ltd., a member of the Party Committee and Deputy General Manager of Kweichow Moutai Co., Ltd., a secretary of the Party Committee and chairman of the board of directors of Kweichow Moutai Sales Co., Ltd. |
Zhong Zhengqiang | Served as the director and deputy secretary of the 13th liquor-making workshop, assistant to the general manager and director of the Production Management Department of Kweichow Moutai Co., Ltd. Currently serves as a member of the Party Committee and deputy general manager of Kweichow Moutai Co., Ltd. |
Jiang Yan | Served as the chairman of the board of directors and general manager of Moutai (Guizhou) Private Equity Fund Management Co., Ltd., the chairman of the board of directors and the secretary of Party Branch of Moutai (Shanghai) Financial Leasing Co., Ltd., and the vice chairman of the board of directors of Guiyang GY Financial Leasing Co., Ltd. Currently serves as a member of the Party Committee, deputy general manager, chief financial officer and secretary of the Board of Directors of Kweichow Moutai Co., Ltd., the secretary of the Party branch and chairman of the Board of Directors of Kweichow Moutai Group Finance Co., Ltd. |
Other information
□Applicable √N/A
(II) The current and outgoing directors, supervisors and senior management personnel during thereporting period
1. Appointment in shareholder entity
√Applicable □N/A
Name of incumbent | Name of shareholder units | Positions held in shareholder units | Start date of term of service | End date of term of service |
Ding Xiongjun | China Kweichow Moutai Distillery (Group) Co., Ltd. | Party secretary, chairman and director | August 2021 | |
Wang Li | China Kweichow Moutai Distillery (Group) Co., Ltd. | Deputy Secretary of the Party Committee, Deputy Chairman, Director and General Manager | August 2023 | |
Tu Huabin | China Kweichow Moutai Distillery (Group) Co., Ltd. | Member of the Party Committee, and Deputy General Manager | August 2023 | |
Wang Xiaowei | China Kweichow Moutai Distillery (Group) Co., Ltd. | Member of the Party Committee, and Deputy General Manager | August 2023 | |
Xie Qinqing | China Kweichow Moutai Distillery (Group) Co., Ltd. | Director of the Enterprise Management Department | December 2021 |
2. Appointment in other units
√Applicable □N/A
Name of incumbent | Name of other units | Positions held in other units | Start date of term of service | End date of term of service |
Ding Xiongjun | Moutai Institute | Chairman of the Board of Directors, director | March 2022 | |
Guo Tianyong | Central University of Finance and Economics | A professor and doctoral supervisor at the School of Finance | September 1999 | |
Ping An Bank Co., Ltd. | Independent director | August 2016 | ||
Ping An Healthcare and Technology Company Limited | Independent non-executive director | May 2018 | ||
Sheng Leiming | Beijing Guantao (Shanghai) Law Firm | Lawyer | April 2016 | |
Shanghai Zhenhua Heavy Industries Co., Ltd. | Independent director | June 2019 | ||
Tsingtao Brewery Co., Ltd. | Independent director | June 2020 | ||
FSG | Independent director | September 2021 | ||
Shanghai United Imaging Healthcare Co., Ltd. | Independent director | November 2020 | ||
Wang Xin | University of Hong Kong | Professor | April 2019 |
Shoucheng Holdings Limited | Independent non-executive director | May 2018 | ||
Liu Shizhong | Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Chairman, director | May 2020 | |
Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. | Chairman, director | |||
Xie Qinqing | Guizhou Guiyang Longdongbao International Airport Co., Ltd. | Director | April 2023 | |
Wen Yong | Guizhou Zunyi Moutai Airport Co., Ltd. | Director | April 2022 | |
Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | Director | January 2024 | ||
Jiang Yan | Kweichow Moutai Group Finance Co., Ltd. | Secretary of the Party Branch, Director and Chairman | June 2022 |
(III) Remuneration of directors, supervisors and senior management personnel
√Applicable □N/A
Decision-making procedure of the remuneration of directors, supervisors and senior executives | The remuneration decision-making procedures for directors, supervisors and senior executives who receive remuneration from the Company: first, the renumeration for senior executives is determined upon deliberation by the Board of Directors of the Company in the light of the Company's annual state of operation and performance assessment results; second, the renumeration for independent directors is determined at the general meeting of shareholders of the Company upon deliberation; third, the remunerations for employee directors and supervisors who get payment from the Company are determined based on their posts held concurrently in the Company under the renumeration management system of the Company, in the light of the individual performance assessment results. |
Basis for determining the remuneration of directors, supervisors and senior managers | 1. The Administrative Measures for the Performance Appraisal of Members of the Management, the Administrative Measures for Remuneration of Members of the Management and the Letter of Commitment on Business Performance,issued by the Company; 2. the Measures for the Implementation of Salary Management of the Company; 3. The renumeration for independent directors is determined at the general meeting of shareholders. |
Actual payment of remuneration of directors, supervisors and senior management personnel | For details, please refer to “Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period” in this report. |
Total actual remuneration received by all directors, supervisors and senior management personnel at the end of the reporting period | For details, please refer to “Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period” in this report. |
(IV) Changes in directors, supervisors and senior management personnel of the company
√Applicable □N/A
Name | Position | Situation of change | Reasons of change |
Wang Li | Director | Election | Election of the general meeting of shareholders. Please refer to the Announcement on Resolution of the First Extraordinary General Meeting of Shareholders of Kweichow Moutai in 2023 (Announcement No.: Lin 2023-029) disclosed on September 8, 2023 for details. |
Acting as general manager | Currently hired | by the Board of Directors Please refer to the Announcement of Kweichow Moutai on the Resolution of the Third Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-025) disclosed on August 21, 2023 for details. | |
Wang Xin | Independent director | Election | Election of the general meeting of shareholders. Please refer to the Announcement of Kweichow Moutai on the Resolution of the Second Extraordinary General Meeting of Shareholders in 2023 (Announcement No.: Lin 2023-039) disclosed on December 7, 2023 for details. |
Li Qiangqing | Supervisor | Election | Election of the general meeting of shareholders. Please refer to the Announcement of Kweichow Moutai on the Resolution of 2022 Annual General Meeting of Shareholders (Announcement No.: Lin 2023-016) disclosed on June 14, 2023 for details. |
Wen Yong | Employee supervisor | Election | Employee representative election. Please refer to the Announcement of Kweichow Moutai on the Election Results of Employee Directors (Announcement No.: Lin 2023-020) disclosed on June 14, 2023 for details. |
Li Jingren | Director, and acting general manager | Off-office. | Resignation. Please refer to the Announcement of Kweichow Moutai on Resignation of Directors (Announcement No.: Lin 2023-027) disclosed on August 21, 2023 for details. |
Jiang Guohua | Independent director | Off-office. | Resignation. Please refer to the Announcement of Kweichow Moutai on Resignation of Independent Directors (Announcement No.: Lin 2023-031) disclosed on October 27, 2023 for details. |
Che Xingyu | Supervisor | Off-office. | Leaving his post during the election at the office term expiration of the Board of Supervisors |
Liu Chenglong | Employee supervisor | Off-office. |
(V) Explanation of punishment by securities regulatory agencies in recent three years
□Applicable √N/A
(VI) Others
□Applicable √N/A
V. Board meetings during reporting period
Session of the meeting | Date of convening | Meeting resolution |
First meeting of the third Board of Directors in 2023 | March 29, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the First Meeting of the Third Board of Directors in 2023 (Announcement No.: Lin 2023-002) disclosed on March 31, 2023 for details. |
Second meeting of the third Board of Directors in 2023 | April 07, 2023 | Adopted upon deliberation the Proposal on the Investment and Construction of the Integration of industry and finance at the meeting |
Third meeting of the third Board of Directors in 2023 | April 24, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Third Meeting of the Third |
Board of Directors in 2023 (Announcement No.: Lin 2023-008) disclosed on April 26, 2023 for details. | ||
Fourth meeting of the third Board of Directors in 2023 | May 17, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Fourth Meeting of the Third Board of Directors in 2023 (Announcement No.: Lin 2023-011) disclosed on May 19, 2023 for details. |
First meeting of the fourth Board of Directors in 2023 | June 13, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the First Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-017) disclosed on June 14, 2023 for details. |
Second meeting of the fourth Board of Directors in 2023 | August 01, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Second Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-024) disclosed on August 3, 2023 for details. |
Third meeting of the fourth Board of Directors in 2023 | August 19, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Third Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-025) disclosed on August 21, 2023 for details. |
Fourth meeting of the fourth Board of Directors in 2023 | September 07, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Fourth Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-030) disclosed on September 8, 2023 for details. |
Fifth meeting of the fourth Board of Directors in 2023 | October 20, 2023 | Adopted upon deliberation the Report of Kweichow Moutai for the Thitd Quarter of 2023, the Proposal on Deliberating the Assessment Results of Members of the Management in 2022 and the Letter of Responsibility of Business Performance for 2023, and the Proposal on Purchasing the Right of Use of the Land for Building the Comprehensive Traffic Parking Lot at the meeting. |
Sixth meeting of the fourth Board of Directors in 2023 | November 20, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Sixth Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-033) disclosed on November 21, 2023 for details. |
Seventh meeting of the fourth Board of Directors in 2023 | December 06, 2023 | Adopted upon deliberation the Proposal on the Adjustment of Special Committee Members under the Board of Directors, and the Proposal on Deliberating the Implementation of Gross Payroll Budget in 2022 and the Gross Payroll Budget Plan for 2023 at the meeting |
Eighth meeting of the fourth Board of Directors in 2023 | December 19, 2023 | Adopted upon deliberation the Proposal on the Rectification of the Ethanol Concentration Detection and Alarm Device and the Linked Draught Fan System in the Stock Area for Liquor Blending and Filling at the meeting |
Ninth meeting of the fourth Board of Directors in 2023 | December 19, 2023 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Ninth Meeting of the Fourth Board of Directors in 2023 (Announcement No.: Lin 2023-041) disclosed on December 20, 2023 for details. |
VI. Performance of duties by the directors(I) The directors attend the board of directors and the general meeting of shareholders
director surname and personal name | Whether an independent director | Participation in the Board of Directors | Joining the shareholders’ general meeting | |||||
Number | Number | Number of | Number of | Absenc | Did not | Number of |
of board attendance this year | of in-person attendance | participation by communication | commissioned attendance | e, number | personally attend the meeting for twice in a row | attendance at shareholders’ meetings | ||
Ding Xiongjun | No | 13 | 13 | 5 | 0 | 0 | No | 3 |
Wang Li | No | 6 | 6 | 4 | 0 | 0 | No | 1 |
Guo Tianyong | Yes | 13 | 13 | 10 | 0 | 0 | No | 3 |
Sheng Leiming | Yes | 13 | 13 | 9 | 0 | 0 | No | 3 |
Wang Xin | Yes | 3 | 3 | 2 | 0 | 0 | No | 0 |
Liu Shizhong | No | 13 | 13 | 7 | 0 | 0 | No | 3 |
Xie Qinqing | No | 13 | 13 | 5 | 0 | 0 | No | 3 |
Li Jingren | No | 7 | 7 | 2 | 0 | 0 | No | 1 |
Jiang Guohua | Yes | 10 | 10 | 8 | 0 | 0 | No | 2 |
Failure to personally attend board meetings for two consecutive occasions
□Applicable√N/A
Number of board meetings held within the year | 13 |
Including: the number of live meetings | 3 |
Number of meetings held by communication mode | 5 |
The number of meetings were held on site combined with communication methods | 5 |
(II) Explanation of directors' objections to company-related matters
□Applicable √N/A
(III) Others
□Applicable √N/A
VII. Situation of a special committee under the Board of Directors
√Applicable □N/A
(I) The members of a special committee under the Board of Directors
Special Committee category | Member name |
The Audit committee | Wang Xin, Guo Tianyong, Sheng Leiming |
The Nomination committee | Sheng Leiming, Ding Xiongjun, Guo Tianyong |
The Salary and Assessment Committee | Guo Tianyong, Wang Xin, Liu Shizhong |
The Strategy Committee | Ding Xiongjun, Wang Li, Guo Tianyong, Sheng Leiming, wang Xin, Liu Shizhong, Xie Qinqing |
The Risk and Compliance Management Committee | Wang Li, Sheng Leiming, Wang Xin |
(II) The audit committee held four meetings during the reporting period
Date of convening | content of meeting | Important comments and suggestions |
March 29, 2023 | First meeting of the third Audit Committee in 2023 | Deliberated and approved the Report on the Performance of the Audit Committee under the Board of Directors in 2022, the Annual Report of 2022 (Full Text and Abstract), the Annual Report on Final Accounts in 2022, the Annual Financial Budget Plan of 2023, the Report on the Evaluation of Internal Control of 2022, the Internal Control Audit Report of 2022, the Proposal on Hiring Financial Audit Institutions and Internal Control Audit Institutions in 2023, the Proposal on Daily Related Transactions and other proposals and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
April 23, 2023 | Second meeting of the third Audit Committee in 2023 | Adopted upon deliberation the Report of Kweichow Moutai for the First Quarter of 2023 and agreed to submit relevant proposals to the Board of Directors of the Company for deliberation as required. |
May 16, 2023 | Third meeting of the third Audit Committee in 2023 | Deliberated and approved the Proposal on Signing a Trademark License Agreement with a Related Party and the Proposal on Making Capital Contribution to Establishing the Industrial Development Fund and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
July 31, 2023 | First meeting of the fourth Audit Committee in 2023 | Deliberated and approved the Semi-annual Report in 2023 and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
October 19, 2023 | Second meeting of the fourth Audit Committee in 2023 | Adopted upon deliberation the Report of Kweichow Moutai for the First Quarter of 2023 and agreed to submit relevant proposals to the Board of Directors of the Company for deliberation as required. |
(III) The nominating committee held three meeting during the reporting period
Date of convening | content of meeting | Important comments and suggestions |
May 16, 2023 | First meeting of the third Nomination Committee in 2023 | Adopted upon deliberation the Proposal on the General Election of the Board of Directors and agreed to submit relevant proposals to the Board of Directors of the Company for deliberation as required. |
August 19, 2023 | First meeting of the fourth Nomination Committee in 2023 | Adopted upon deliberation the Proposal on Nominating Candidates for Directors and the Proposal on Determining the Candidate Acting as the General Manager, and agreed to submit relevant proposals to the Board of Directors of the Company for deliberation as required. |
November 19, 2023 | Second Meeting of the Fourth Nomination Committee in 2023 | Deliberated and approved the Proposal on Nominating Candidates for Independent Directors and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
(IV) The Remuneration and Appraisal Committee held two meetings during the reporting period
Date of convening | content of meeting | Important comments and suggestions |
October 19, 2023 | First meeting of the Fourth Remuneration and Appraisal Committee in 2023 | Adopted upon deliberation the Proposal on Deliberating the Assessment Results of Members of the Management in 2022 and the Letter of Responsibility of Business Performance for 2023, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
December 5, 2023 | Second meeting of the Fourth Remuneration and Appraisal Committee in 2023 | Adopted upon deliberation the Proposal on Deliberating the Implementation of Gross Payroll Budget in 2022 and the Gross Payroll Budget Plan for 2023, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
(V) The Strategy Committee held seven meetings during the reporting period
Date of convening | content of meeting | Important comments and suggestions |
April 06, 2023 | First meeting of the Third Strategy Committee in 2023 | Adopted upon deliberation the Proposal on the Investment and Construction of the Integration of Industry and Finance, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
April 23, 2023 | Second meeting of the Third Strategy Committee in 2023 | Adopted upon deliberation the Liquidation Scheme of Guojiu Moutai Customized Marketing (Guizhou) Co., Ltd., and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
May 16, 2023 | Third meeting of the Third Strategy Committee in 2023 | Adopted upon deliberation the Proposal on Making Capital Contribution to Establishing the Industrial Development Fund, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
July 31, 2023 | First meeting of the Fourth Strategy Committee in 2023 | Adopted upon deliberation the Proposal on the Investment and Construction of 60,000-ton Liquor Blending Center and Comprehensive Parking Lot for General Dangerous Goods in China, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
October 19, 2023 | Second meeting of the Fourth Strategy Committee in 2023 | Adopted upon deliberation the Proposal on Purchasing the Right of Use of the Land for Building the Comprehensive Traffic Parking Lot, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
November 19, 2023 | Third meeting of the Fourth Strategy Committee in 2023 | Adopted upon deliberation the Proposal on Purchasing the Laboratory Instruments and Equipment in 2023, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
December 18, 2023 | Fourth meeting of the Fourth Strategy Committee in 2023 | Adopted upon deliberation the Proposal on the Rectification of the Ethanol Concentration Detection and Alarm Device and the Linked Draught Fan System in the Stock Area for Liquor Blending and Filling, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
(VI) The Risk and Compliance Management Committee held three meetings during the reportingperiod
Date of convening | content of meeting | Important comments and suggestions |
March 28, 2023 | First meeting of the Third Risk Management Committee in 2023 | Adopted upon deliberation the Report on Internal Control Assessment in 2022 and the Report on Internal Control Audit in 2022, and agreed to submit relevant proposals to the Board of Directors of the Company for deliberation as required. |
April 23, 2023 | Second meeting of the Third Risk Management Committee in 2023 | Adopted upon deliberation the Proposal on Formulating the Measures for the Comprehensive Risk Management, and the Proposal on Formulating the Measures for Compliance Management, and agreed to submit relevant proposals to the Board of Directors of the Company for deliberation as required. |
July 31, 2023 | First meeting of the Fourth Risk Management Committee in 2023 | Adopted upon deliberation the Proposal on Changing the Name and Rules of Procedure of the Risk Management Committee under the Board of Directors, and agreed to submit relevant proposal to the Board of Directors of the Company for deliberation as required. |
(VII) Specific circumstances where objections exist
□Applicable √N/A
VIII. Explanation that the Board of Supervisors finds the risks of the Company
□Applicable √N/A
The Board of Supervisors has no objection to the supervision matters during the reporting period.
IX. Report on the employees of the parent company and its main subsidiaries at the end of the period(I) Employee condition
Number of active employees in the parent company | 31,916 |
Number of active employees in the main subsidiary | 1,386 |
Total number of current employees | 33,302 |
The number of retired employees of the parent company and its main subsidiary that shall bear the expenses | 2,074 |
Professional composition | |
Professional composition category | Number of majors |
operating personnel | 27,616 |
salesman | 1198 |
artisan | 740 |
financial staff | 261 |
clerical staff | 1,867 |
other personnel | 1,620 |
Total | 33,302 |
Educational background | |
Education background type | Quantity (person) |
graduate degree or above | 491 |
bachelor degree | 10,535 |
college degree | 4,402 |
technical secondary school, high school and below | 17,874 |
Total | 33,302 |
(II) Compensation policy
√Applicable □N/A
First, senior executives are subject to the annual salary system, under which the annual salary consists ofthree parts: basic annual salary, performance annual salary and incentive during tenure. In principle, theymay not enjoy other expenditures for wages, such as allowance and subsidies; Second, mid-level managersare subject to the quasi-annual salary system, under which the remuneration level are comprehensivelydetermined in accordance with the work nature, responsibilities and rights, risks, performances and otherfactors of different systems. Third, general employees are mainly subject to the post performance salarysystem, under which the remuneration level is determined according to the technical content, knowledgecontent, personal ability, work performance and labor intensity of different positions.
(III) Training plan
√Applicable □N/A
The Company’s training plan consists of 124 items (238 phases) in 2024, including 43 company-leveltrainings and 81 department-level trainings. A company-level training refers to a training organized at thecompany level, while a department-level training refers to the training organized and implemented by anydepartment in the light of the actual situation of the department and its employee growth need. Thesetrainings are divided into three categories, consisting of 6 special talent trainings, 10 general skill trainingsand 108 professional skill trainings. Special talent trainings focus on strengthening the training of keytalents, including the "succession plan" personnel, middle managers, internal trainers, reserve talents forproduct evaluation, and backup backbones of production systems, so as to continuously improve theirability, quality and technical skills. General skill trainings, by focusing on improving staff general abilityand quality, establish general training courses that are available for reuse and have a wide range ofparticipating groups and higher standardization level, including the comprehensive quality training, lawsand rules training and cultural and education training. Professional skill trainings. Focusing on promotingthe professional ability and quality of employees, and based on the job characteristics, having an overallplanning for the professional trainings in 19 kinds, including safety management, finance, procurementmanagement, supply management, discipline inspection and supervision, technology research anddevelopment, product evaluation skills, equipment management, production process, quality management,qualification and forensics, ecological environmental protection, human resources, and digital andinformation.
(IV) Labor service outsourcing condition
√Applicable □N/A
In 2023, the total compensation paid by the Company for labor outsourcing was RMB 347 million(including tax).
X. Profit distribution or capital reserve conversion plan(I) The formulation, implementation or adjustment of the cash dividend policies
√Applicable □N/A
The Articles of Association of the Company defines the principles, conditions, methods, periods, cashdividend ratio, decision-making and adjustment procedures and mechanisms and other aspects for profitdistribution.
1. According to the Annual Profit Distribution Plan for 2022 adopted upon deliberation at the annualgeneral meeting of shareholders in 2022 of the Company, on the basis of the total share capital amountingto 1,256,197,800 shares, the Company distributed cash dividends of RMB 259.11 (tax included) for eachten shares to all the shareholders. For the profit distribution plan, opinions were proposed by theindependent directors of the Company. The plan was deliberated and approved by the Board of Directorsof the Company, and then submitted to the general meeting of shareholders of the Company fordeliberation and approval. The votes of the non-controlling shareholders were counted separately whenthe general meeting of shareholders deliberated the proposal. The profit distribution was completed inJune 2023.
2. According to the Special Dividend Plan for Returning Shareholders adopted upon deliberation at thesecond extraordinary general meeting of shareholders in 2023, the Company distributed the cash dividendsof RMB 191.06 (tax included) to all shareholders of the Company for every 10 shares based on the totalshare capital amounting to 1,256,197,800 shares registered on the registration date for the implementationof equity distribution. The plan was adopted upon deliberation by the Board of Directors of the Company,and then submitted to the general meeting of shareholders of the Company for deliberation and approval.The votes of the non-controlling shareholders were counted separately when the general meeting ofshareholders deliberated the proposal. The profit distribution was completed in December 2023.
During the reporting period, the profit distribution of the Company met the provisions of the Articles ofAssociation of the Company.
(II) Special explanation of the cash dividend policy
√Applicable □N/A
Whether it complies with the provisions of the articles of association or the resolution of the general meeting of shareholders | √Yes □No |
Whether the dividend standard and proportion are clear | √Yes □No |
Whether the relevant decision-making procedures and mechanisms are complete | √Yes □No |
Whether the independent directors perform their duties and play their due role | √Yes □No |
Whether non-controlling shareholders have the opportunity to fully express their opinions and appeals, and whether their legitimate rights and interests have been fully protected | √Yes □No |
(III) If the profits are made during the reporting period and the parent company’s distributableprofits available to shareholders are positive, but fails to put forward the cash profit distributionplan, the company shall disclose in detail the reasons, the use and use plan of the retained earnings
□Applicable √N/A
(IV) Profit distribution and conversion of capital reserves into share capital during the reportingperiod
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Dividend payout for every 10 shares (RMB) (tax included) | 308.76 |
Amount of cash dividends (tax included) | 38,786,363,272.80 |
Net profit attributable to ordinary shareholders of listed companies in the consolidated statement for the year of dividends distribution | 74,734,071,550.75 |
Proportion of the net profit attributable to ordinary shareholders of listed companies in the consolidated statement (%) | 51.90 |
XI. Situation and impact of the Company’s equity incentive plan, employee stock ownership planor other employee incentive measures
(I) The relevant incentive matters have been disclosed in the interim announcement and there is noprogress or change in the subsequent implementation
□Applicable √N/A
(II) Incentives if not disclosed or with subsequent progress in the interim announcementEquity incentive
□Applicable √N/A
Other specifications
□Applicable √N/A
Employee stock ownership plan condition
□Applicable √N/A
Other incentives
□Applicable √N/A
(III) The equity incentive situation granted by the directors and senior managers during thereporting period
□Applicable √N/A
(IV) The evaluation mechanism of senior management personnel and the establishment andimplementation of the incentive mechanism during the reporting period
√Applicable □N/A
According to relevant provisions of the Administrative Measures for the Remuneration of the Persons inCharge of the Enterprises Supervised by Guizhou Provincial State-owned Assets Supervision andAdministration Commission and the Measures for Assessing the Operating Performance of the Persons inCharge of the Enterprises Supervised by Guizhou Provincial State-owned Assets Supervision andAdministration Commission, and the Administrative Measures for the Performance Appraisal of theMembers of the Management and the Administrative Measures for the Renumeration of the Members ofthe Management of the Company, the Company has signed the Letter of Responsibility of BusinessPerformance with senior executives, and comprehensively determined the renumeration of seniorexecutives in combination with the assessment indicators specified in the letter and the completion ofperformance.
XII. Construction and implementation of the internal control system during the reporting period
√Applicable □N/A
According to the basic specification of enterprise internal control and its supporting guidelines and otherinternal control regulatory requirements, combined with the company’s internal control system andevaluation method, on the basis of daily supervision and special supervision, the board of directors of thecompany on December 31, 2023 (internal control evaluation report base date) internal controleffectiveness of the evaluation. See the Shanghai Stock Exchange website along with this report (website:
www.sse.com.cn) 2023 Internal Control Evaluation Report.
Notes to major defects in internal control during the reporting period
□Applicable √N/A
XIII. Management and control of the subsidiaries during the reporting period
√Applicable □N/A
In order to strengthen the Company's management over its subsidiaries and standardize its deliberativebodies and procedures, the Company held system review meetings from time to time, and pre-reviewedthe Articles of Association and the rules of procedure of the "Three Boards" of its subsidiaries inaccordance with the principles of legality, applicability, timeliness and problem-oriented improvement ofmanagement, and studied and discussed the overall framework, duties and powers and specific scope ofdiscussion of the Articles of Association and the rules of procedure of the "Three Boards". By reviewingthe articles of association and the rules of procedure of the "Three Boards” of subsidiaries, the Companystrengthened its restriction and supervision over the power operation of the subsidiary's leading groups,improved work efficiency and work level, and promoted the legalization, institutionalization and scientificdecision-making of the deliberative institutions.
XIV. Relevant information description of the internal control audit report
√Applicable □N/A
Please refer to the 2023 Annual Internal Control Audit Report of the Company disclosed together withthe report on the website of Shanghai Stock Exchange (website: www.sse.com.cn) for details.Whether the internal control audit report has been disclosed or not:YesTypes of opinions in internal control audit reports: standard and unqualified
XV. Rectification of self-inspection problems in the special action of governance of listed companiesAccording to the requirements of the Announcement of the China Securities Regulatory Commission onLaunching Special Actions on Corporate Governance of Listed Companies and the Circular of theSecurities Regulatory Bureau of Guizhou Province on Matters concerning Governance Self-inspection ofListed Companies, the Company earnestly carried out the special self-inspection work of governanceagainst the special self-inspection list for listed companies. In view of the problems found in the self-inspection, the Company attached great importance to such problems and seriously made rectifications.As of the end of the reporting period, there are still two problems: one, the controlling shareholders failedto fulfill the commitment to implement the equity incentive plan; two, any senior executive of theCompany works concurrently serves the controlling shareholder. The Company will, as required, continueto strengthen the modernization construction of corporate governance capacity and level, continuouslyimprove the corporate governance system and mechanism, keep optimizing the internal control system,steadily improve the effectiveness of corporate governance, and promote the high-quality development ofthe Company.
XVI. Others
□Applicable √N/A
Section V Environment and Social ResponsibilityI. Environmental information situation
Whether relevant mechanisms for environmental protection are established | Yes |
Environmental protection funds invested during the reporting period (Unit: RMB '0,000) | 20,836.99 |
(I) Environmental information of the company and its major subsidiaries that are key emission unitsannounced by the environmental protection authorities
√Applicable □N/A
1. Emission information
√Applicable □N/A
(1) Main pollutants: waste water, waste gas and solid waste.
(2) Names of particular pollutants: COD, ammonia nitrogen, total phosphorus, total nitrogen, sulfurdioxide, nitrogen oxides, smoke (dust).
(3) Discharge of pollutants in 2023:
① Waste water
There are five sewage treatment plants in the Company, and each sewage treatment plant is equipped witha discharge outlet. These plants are distributed in the old factory area of the company headquarters,Zhonghua Area, and Dadi Area, Xinzhai Area and Yuping Area of Heyixing Liquor Branch. For YupingArea, sewage is pretreated and then discharged to Erhe Sewage Treatment Plant for up-to-standarddischarge, and the sewage in other areas are directly discharged after wastewater treatment reaches thestandard.
Sewage treatment plant | COD | Ammonia-nitrogen | Total phosphorus | Total nitrogen | Executive |
Name | Mean emission concentration | Total amount of discharge (ton) | Mean emission concentration | Total amount of discharge (ton) | Mean emission concentration | Total amount of discharge (ton) | Mean emission concentration | Total amount of discharge (ton) | standards | |
Headquarters of Moutai | 7000t/d Sewage treatment plant | 19.0541 | 14.7365 | 0.0954 | 0.0612 | 0.0451 | 0.0339 | 2.8729 | 1.9683 | Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry (GB27631-2011) Table 3 Standards for Direct Discharge |
4000t/d Sewage treatment plant | 26.2134 | 8.71 | 0.7886 | 0.27 | 0.0851 | 0.03 | 6.1055 | 2.09 | ||
Heyixing Liquor Branch | Xinzhai Sewage Treatment Plant | 28.62 | 14.986 | 0.53 | 0.271 | 0.117 | 0.057 | 5.019 | 2.656 | |
Dadi Sewage Treatment Plant | 25.15 | 7.395 | 0.20 | 0.061 | 0.046 | 0.012 | 4.307 | 1.217 | ||
Erhe Sewage Treatment Plant | 21.93 | 7.69 | 1.37 | 0.48 | 0.100 | 0.035 | 6.625 | 2.323 | Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry (GB27631-2011) Table 2 Standards for Indirect |
Discha
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ntDischarge ofUrbanSewag
eTreatm
entPlants
②Exhaust gas
The company’s gas boilers are located in the old factory and Zhonghua area of the company’s headquarters,and in the Dadi area, Xinzhai area and Erhe area of Heyixing Liquor Branch. The company’s gas boilersuse natural gas as the energy source, with direct emissions of boiler exhaust.
Emission of gas boilers | ||||||||
Region | Sulfur dioxide | Oxynitride | Smoke (dust) | Executive standards | ||||
Mean emission concentration (Mg/m3) | Discharge amount (ton) | Mean emission concentration (Mg/m3) | Discharge amount (ton) | Mean emission concentration (Mg/m3) | Discharge amount (ton) | |||
Headquarters of Moutai (Old area and Zhonghua Area) | 4.5 | 3.48 | 66.36 | 52.66384 | 4.7 | 7.064 | Table 2 of Emission Standards for Air Pollutants from Boiler (GB13271-2014) | |
Heyixing Liquor Branch | Xinzhai Area | 3 | 0.8682 | 53.25 | 15.63306 | 10.88 | 2.24432 | |
Dadi Area | 3 | 0.26593 | 50.79 | 4.08931 | 10.09 | 0.72944 | ||
Erhe Area | 3 | 0.27012 | 55.03 | 4.99795 | 10.61 | 0.99872 |
③ Solid waste treatment
The Company hands over the solid waste including distiller's grains, waste pit mud and waste wheatgrassto Kweichow Moutai Distillery (Group) Circular Economy Industrial Development Co., Ltd. forcomprehensive utilization and disposal, entrusts a third-party company to transport the domestic garbageto the incineration power plant and other units for incineration disposal and entrusts a qualified companyto dispose of hazardous wastes in a normalized way.
(4) Approved total amount of discharge
The company has applied for and obtained emission permits for various areas in accordance with theMeasures for the Administration of Emission Permits (Trial) and relevant requirements. The approvedtotal emission volume during the reporting period is as follows: COD 66.648 tons; ammonia nitrogen
6.665 tons; total phosphorus 0.667 tons; total nitrogen 19.994 tons; nitrogen oxides 231.001 tons; sulfurdioxide and dust (powder) are subject to concentration control in accordance with the standards specified
in Table 2 of the Emission Standard of Air Pollutants for Boilers (GB13271-2014).
2. Construction and operation of pollution prevention facilities
√Applicable □N/A
The pollution prevention facilities of Kweichow Moutai Liquor Co., Ltd. mainly include waste water,waste gas and other pollution prevention facilities, which are in normal operation. In 2023, the Companypiloted the upgrading and renovation of its wastewater pollution prevention and control facilities to lay asolid foundation for further reducing pollutant emissions, and continued to carry out low nitrogentransformation of gas boilers for the waste gas pollution prevention and control facilities to effectivelyreduce the emissions of major pollutants from the source.
3. Environmental Impact Assessment of Construction Projects and Other Administrative Permitsfor Environmental Protection
√Applicable □N/A
(1) The Company carried out environmental impact assessment for new, rebuilt and expanded projects inaccordance with the law, and obtained 3 administrative licenses for environmental impact assessment in2023.
(2) The Company carried out environmental protection acceptance of completed projects according to lawand completed online filing. In 2023, 7 projects had been completed.
4. Emergency response plan for environmental emergencies
√Applicable □N/A
According to the relevant documents such as the "Measures for the Administration of Filing of EmergencyPlans for Environmental Emergencies in Enterprises and Institutions (for trial implementation)" (HF [2015]No. 4) issued by the Ministry of Environmental Protection, both the Company’s headquarters and YixingLiquor Industry Branch have prepared emergency plans for sudden environmental incidents and submittedthem to the ecological environment regulatory department for filing, and organized emergency drills forthe year 2023 to improve the company's emergency response capabilities.
5. Self-monitoring environmental program
√Applicable □N/A
In accordance with the requirements of the "Measures for Environmental Information Disclosure ofEnterprises and Institutions" (Order No. 31 of the Ministry of Environmental Protection) and the "GeneralGuidelines for Self monitoring Technology of Polluting Units" (HJ819-2017), the Company hasdeveloped a self monitoring plan to grasp the emission status of pollutants from its own enterprise and itsimpact on the quality of the surrounding environment, fulfill its legal obligations and social responsibilities,and ensure that self monitoring meets environmental management requirements.
6. Administrative penalties for environmental issues during the reporting period
□Applicable √N/A
7. Other environmental information that should be made public
□Applicable √N/A
(II) Environmental information of the company other than key emission units
□Applicable √N/A
(III) Relevant information conducive to ecological protection, pollution prevention and control, andenvironmental responsibility fulfillment
√Applicable □N/A
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the company hasbeen deeply implementing Xi Jinping's thought on ecological civilization, actively practicing the conceptof "Clear Waters and Green Mountains as Good as Mountains of Gold and Silver", and adhering to thetwo bottom lines of development and ecology. Centering on the overall requirements of ecological priorityand green development, and focusing on the overall goal of "one base and one benchmark", the companyhas deeply advanced various work such as top-level design, pollution prevention and control, and carbonneutrality management. As a result, the company has successfully established an innovative practice basefor the concept of "Clear Waters and Green Mountains as Good as Mountains of Gold and Silver" andsuccessfully applied for and obtained the national and provincial titles of "Green Factory".
(I) Enhancing pollution prevention and control level. In accordance with the approach of "grading andclassification, classified treatment, and resource utilization", we have systematically constructed andupgraded the pipeline network and wastewater treatment facilities within the factory area, achieving adaily treatment capacity of 23,000 tons of wastewater. At the same time, we are planning and constructingthe Zhonghua Ecological Wetland to purify and reuse the treated "tailwater", thus reducing the ecologicalimpact on the Chishui River and ensuring the effectiveness of pollution prevention and control.Additionally, we have conducted in-depth research on the characteristics of production wastewater,comprehensive utilization of high-concentration sewage, ultra-low nitrogen retrofit of gas-fired boilers,and green and low-carbon aspects, aiming to enhance technical capabilities, master key core technologies,and lay a foundation for improving pollutant treatment..
(II) Strengthening process supervision and control. Following the approach of "online monitoring + self-monitoring + hierarchical monitoring", we have established monitoring stations at key nodes such as theeffluent discharge outlet of the wastewater treatment plant, the flue gas discharge outlet of the boilers, andthe stormwater discharge outlet of the factory area. Additionally, we have constructed a field scientificobservation and research station in the Chishui River Basin to systematically establish an integrated "sky-ground" ecosystem monitoring network and an environmental monitoring comprehensive datamanagement platform.
(III) Strengthening ecological and environmental restoration. We actively engage in exchanges andcooperation with top domestic design institutions to conduct overall ecological design for the factory area.
(IV) Measures taken to reduce its carbon emissions during the reporting period and their effects
Whether any carbon reduction measure is taken | Yes |
Carbon dioxide equivalents of reduced emission (unit: ton) | 52,297.65 |
Types of carbon reduction measures (such as using clean energy to for power generation, using carbon reduction technology in the production process, developing and producing new products that support carbon reduction, etc.) | The Company continues to optimize the energy use structure, actively develop energy-saving and environmental protection technologies, formulate carbon emission management plans, and build and improve a new power system taking new energy as the main part. The Company responded to the national dual carbon strategy and issued the "Carbon Peak and Carbon Neutrality" action plan in December 2023. Through the implementation of nine key tasks, various emission reduction measures were gradually refined and decomposed. |
Specific description
□Applicable √N/A
II. Social Responsibility Work(I) Whether there is any social responsibility report, sustainable development report or ESG reportdisclosed separately
√Applicable □N/A
For details, please refer to our “Social Responsibility and ESG Report 2023” disclosed on the website ofShanghai Stock Exchange (URL: www.sse.com.cn) at the same time as this report.
(II) Specific information on social responsibilities
□Applicable √N/A
Specific description
□Applicable √N/A
III. Specific work on consolidating and expanding the progress in poverty alleviation and ruralrevitalization
√Applicable □N/A
For details, please refer to our “Social Responsibility and ESG Report 2023” disclosed on the website ofShanghai Stock Exchange (URL: www.sse.com.cn) at the same time as this report.
Specific description
□Applicable √N/A
Section VI Significant EventsI. Undertakings of Commitment Fulfillment(I) Undertakings of the Company’s actual controller, shareholders, related parties and acquirers, aswell as the Company and other commitment makers fulfilled in the reporting period or ongoing bythe end of this reporting period
√Applicable □N/A
Background of commitments | Commitment Type | Party making commitment | Commitment Content | Commitment time | Whether there is a deadline for performance | Commitment time limit | Whether it is strictly performed in time | Specific reasons for any failure in timely performance | Next plan for any failure in timely performance |
Commitments related to share reform | Others | China Kweichow Moutai Distillery (Group) Co., Ltd. | Equity incentive commitment: After the completion of split-share reform, the Company will formulate equity incentive measures for the management and core technical teams according to relevant national policies and regulations. | Yes | Before the end of December 2017, the Company promoted the formulation of equity incentives measures for the management and core technical teams of the Company. | No | Superior authorities have not issued relevant guiding opinions and specific measures. |
(II) If there is a profit forecast for the company’s assets or projects, and the reporting period is stillin the profit forecast period, the company provides an explanation on whether the assets or projectsmeet the original profit forecast and its reasons
□Have met □Have not met √N/A
(III) The completion of performance commitments and their impact on the goodwill impairmenttest
□Applicable √N/A
II. Non-operating appropriation of funds by controlling shareholders and other related partiesduring the reporting period
□Applicable √N/A
III. Non-compliance with guarantees
□Applicable √N/A
IV. Explanation of the board of directors regarding the “Non-standard audit opinion” by the CPAfirm
□Applicable √N/A
V. Analysis of the reasons for and effects of changes in accounting policies, accounting estimates orcorrections of significant accounting errors by the Company(I) Analysis of the reasons for and effects of changes in accounting policies and accounting estimates
□Applicable √N/A
(II) Analysis of the reasons for and effects of corrections of significant accounting errors by theCompany
□Applicable √N/A
(III) Communication with the previous CPA firm
□Applicable √N/A
(IV) Procedures for examination and approval and other descriptions
□Applicable √N/A
VI. Engagement and disengagement of CPA firms
Monetary Unit: RMB '0,000 Currency: RMB
Current CPA | |
Name of the domestic CPA firm | Baker Tilly China CPAs |
Remuneration of the domestic CPA firm | 120 |
Years of audit by the domestic CPA firm | 6 |
Accumulated working years of the certified public accountant of a domestic accounting firm | 5 |
Name | Remuneration | |
Internal control audit CPA firm | Baker Tilly China CPAs | 41 |
Note on the engagement and disengagement of CPA firms
□Applicable √N/A
Note on reappointing the CPA firm during the audit
□Applicable √N/A
Description of the decrease in audit fee by over 20% (excluding) compared with that in the prior year
□Applicable √N/A
VII. Cases facing the risk of delisting(I) Reasons of delisting risk warnings
□Applicable √N/A
(II) Measures to be taken by the Company in response
□Applicable √N/A
(III) Circumstances and reasons for facing termination of listing
□Applicable √N/A
VIII. Matters related to bankruptcy restructuring
□Applicable √N/A
IX. Significant litigation and arbitration matters
□The company has significant litigation and arbitration matters during the year
√The company has no significant litigation and arbitration matters during the year
X. The listed company and its directors, supervisors, senior management, controlling shareholdersand actual controllers are suspected of violating the law, being punished and their rectification
□Applicable √N/A
XI. Description of the integrity of the Company and its controlling shareholders and actualcontrollers during the reporting period
√Applicable □N/A
The integrity of the Company and its controlling shareholders during the reporting period is good.
XII. Significant related party transactions(I) Related party transactions related to daily operations
1. Matters that have been disclosed in the interim announcement with no progress or changes insubsequent implementation
□Applicable √N/A
2. Matters that have been disclosed in the interim announcement with progress or changes insubsequent implementation
□Applicable √N/A
3. Matters not disclosed in the interim announcement
√Applicable □N/A
(1) Related party transactions with the same related party as those considered and approved by the Boardof Directors
Monetary Unit: Yuan Currency: RMB
Name of related parties | Relationship | Type of Related party transactions | Content of Related party transactions | Pricing Principles for Related party transactions | Connected transaction price | Amount of Related party transactions | Proportion of the amount of similar transactions (%) | Settlement of Related party transactions | Market Price | Reasons for large differences between |
transaction prices and market reference prices | ||||||||||
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Holding subsidiary of the parent company | Receipt of services | Cargo transportation services | Refer to the independent third-party transaction price | 216,497,975.59 | 64.45 | Cash payment | |||
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | Others | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 353,391,541.98 | 10.52 | Cash payment | |||
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Others | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 259,369,377.21 | 7.72 | Cash payment | |||
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Purchase of goods | Purchase of goods | Negotiated price | 141,561,000.00 | 100.00 | Cash payment | |||
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Others | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 125,734,378.80 | 2.52 | Cash payment | |||
Guizhou Fuminghang Packaging Co., Ltd. | Others | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 79,633,744.86 | 2.37 | Cash payment | |||
Guizhou Xinhuaxi Glass Co., Ltd. | Others | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 74,837,333.43 | 2.23 | Cash payment | |||
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Holding subsidiary of the parent company | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 50,223,736.00 | 1.01 | Cash payment | |||
Kweichow Moutai Hospital | Others | Purchase of goods | Purchase of goods | Negotiated price | 29,504,681.72 | 98.14 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | Purchase of goods | Purchase of goods | Negotiated price | 26,270,887.61 | 0.78 | Cash payment | |||
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | Others | Purchase of goods | Purchase of goods | The purchase price is the same as the price offered by the related party to the distributor | 2,656,847.80 | 45.77 | Cash payment | |||
ChangLi Moutai Wine Trade Co., Ltd. | Others | Purchase of goods | Purchase of goods | The purchase price is the same as the price offered by the related party to the distributor | 2,656,035.41 | 45.76 | Cash payment | |||
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | Others | Purchase of goods | Purchase of goods | The purchase price is the same as the price offered by the related party to the distributor | 951,669.03 | 16.40 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Purchase of goods | Purchase of goods | Purchase price is the same as the supply price of other non-affiliated suppliers of the Company | 21,875.33 | 0.001 | Cash payment | |||
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | Receipt of services | Labor services fee | Negotiated price | 284,953,843.63 | 21.11 | Cash payment | |||
Xunfeng Technology (Guizhou) Co., Ltd. | Others | Receipt of services | Labor services fee | Negotiated price | 108,936,867.84 | 8.07 | Cash payment | |||
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | Wholly-owned subsidiary of the parent company | Receipt of services | Labor services fee | Negotiated price | 74,332,293.77 | 5.51 | Cash payment | |||
Kweichow Moutai Hospital | Others | Receipt of services | Labor services fee | Negotiated price | 62,578,627.93 | 4.64 | Cash payment | |||
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Others | Receipt of services | Labor services fee | Negotiated price | 60,334,658.08 | 4.47 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary | Receipt of services | Labor services fee | Negotiated price | 51,569,712.68 | 3.82 | Cash payment |
of the parent company | ||||||||||
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | Others | Receipt of services | Labor services fee | Negotiated price | 40,540,182.49 | 3.00 | Cash payment | |||
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Receipt of services | Labor services fee | Negotiated price | 4,485,361.28 | 0.33 | Cash payment | |||
Moutai College | Others | Receipt of services | Labor services fee | Negotiated price | 2,065,849.07 | 0.15 | Cash payment | |||
Guizhou Zunyi Moutai Airport Co., Ltd. | Holding subsidiary of the parent company | Receipt of services | Labor services fee | Negotiated price | 610,344.02 | 0.05 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Receipt of services | Labor services fee | Negotiated price | 136,649.00 | 0.01 | Cash payment | |||
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Others | Receipt of services | Labor services fee | Negotiated price | 116,120.77 | 0.01 | Cash payment | |||
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Receipt of services | Labor services fee | Negotiated price | 25,429.03 | 0.002 | Cash payment | |||
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Holding subsidiary of the parent company | Receipt of services | Labor services fee | Negotiated price | 10,000.00 | 0.001 | Cash payment | |||
Huagui Life Insurance Co., Ltd. | Holding subsidiary of the parent company | Purchase of insurance | Purchase of insurance | Negotiated price | 512,911.13 | 2.01 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Lease-in and lease-out | Rental expenses | Negotiated price | 42,906,029.72 | 31.81 | Cash payment | |||
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Others | Lease-in and lease-out | Rental expenses | Negotiated price | 4,136,575.64 | 3.07 | Cash payment | |||
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | Others | Lease-in and lease-out | Rental expenses | Negotiated price | 1,507,254.44 | 1.12 | Cash payment | |||
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Others | Other utilities expenses such as water, electricity and steam charges (purchase) | Receipt of water supply services | Negotiated price | 43,442.45 | 0.05 | Cash payment | |||
Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 5,384,603,095.58 | 3.66 | Cash payment | |||
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 38,081,330.95 | 0.03 | Cash payment | |||
CHINA GUIZHOU MOUTAI BREWERY TRADING (H.K.) LIMITED | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 23,478,824.28 | 0.02 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 15,409,493.26 | 0.01 | Cash payment | |||
Shanghai Kweichow Moutai Industrial Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 13,524,966.35 | 0.01 | Cash payment | |||
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | Others | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 12,807,170.94 | 0.01 | Cash payment | |||
Guizhou Zunyi Moutai Airport Co., Ltd. | Holding subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 8,999,745.12 | 0.01 | Cash payment |
Beijing Moutai Trade Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 6,364,991.14 | 0.004 | Cash payment | |||
Xunfeng Technology (Guizhou) Co., Ltd. | Others | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 4,969,911.50 | 0.003 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Sales of goods | Sales of goods | Sales price is the same as the purchase price of other non-affiliated distributors of the Company | 686,773.73 | 0.0005 | Cash payment | |||
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | Rendering of services | Labor services fee | Negotiated price | 432,178.18 | 45.62 | Cash payment | |||
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | Others | Rendering of services | Labor services fee | Negotiated price | 258,066.00 | 27.24 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Rendering of services | Labor services fee | Negotiated price | 89,391.24 | 9.44 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | Rendering of services | Labor services fee | Negotiated price | 84,696.23 | 8.94 | Cash payment | |||
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | Others | Rendering of services | Labor services fee | Negotiated price | 38,254.72 | 4.04 | Cash payment | |||
Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | Rendering of services | Labor services fee | Negotiated price | 28,516.98 | 3.01 | Cash payment | |||
Xunfeng Technology (Guizhou) Co., Ltd. | Others | Rendering of services | Labor services fee | Negotiated price | 13,913.21 | 1.47 | Cash payment | |||
ChangLi Moutai Wine Trade Co., Ltd. | Others | Rendering of services | Labor services fee | Negotiated price | 2,353.47 | 0.25 | Cash payment | |||
Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | Lease-in and lease-out | Rental expenses | Negotiated price | 371,359.82 | 45.97 | Cash payment | |||
ChangLi Moutai Wine Trade Co., Ltd. | Others | Lease-in and lease-out | Rental expenses | Negotiated price | 201,834.86 | 24.99 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Lease-in and lease-out | Rental expenses | Negotiated price | 234,564.22 | 29.04 | Cash payment | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Other inflows | Expenses on transfer of assets | Negotiated price | 13,925,889.91 | 100.00 | Cash payment | |||
Total | / | / | 7,627,720,559.42 | / | / | / | ||||
Details of large return of goods sold | ||||||||||
Description of related transactions |
(2) Related transactions with the same related party deliberated and approved by the general meeting ofshareholdersThe Company used the registered trademark of its parent company, China Kweichow Moutai Distillery(Group) Co., Ltd., and the expenses for the right to use trademarks incurred during the reporting periodamounted to RMB 1,805,818,609.89.
(3) Related transactions with other related parties
A. The Company's year-end deposit balance with Guizhou Bank was RMB 24.0969 billion, with interestincome of RMB 653.4299 million and investment income of RMB 4.0787 million from mature largedeposit certificates. Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company,purchased the bonds issued by Bank of Guizhou Co., Ltd. from the open market, with the total price ofRMB 500 million. The interest income recognized in the current period amounted to RMB 16,226,700.As of the end of the period, the balance of the provision for impairment of Debt investment was RMB103,700, the balance of accrued interest was RMB 6.3021 million and the book value was RMB 506.1984million. Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company entrustedGuizhou Bank to collect and pay as an agent the service charge of RMB 73,374,700 for transactions viathe third-party payment channel on “I Moutai” digital marketing platform.
B. The Company purchased packaging materials from Shanghai Rencai Printing Co., Ltd., with an amountof RMB 106,700 incurred in this period.
(II) Affiliated transactions arising from the acquisition or sale of assets or equity
1. Matters disclosed in the interim announcement but without progress or change in subsequentimplementation
□Applicable √N/A
2. Matters disclosed in the interim announcement but without progress or change in subsequentimplementation
□Applicable √N/A
3. Matters not disclosed in the interim announcement
□Applicable √N/A
4. If performance agreement is involved, the realization of performance during the reporting periodshall be disclosed
□Applicable √N/A
(III) Important related party transactions jointly invested
1. Matters disclosed in the temporary announcement without subsequent progress or change
□Applicable √N/A
2. Matters disclosed in the temporary announcement with subsequent progress or change
√Applicable □N/A
Item | Balance at the beginning of the period | Investment amount in 2023 | Changes in fair value in 2023 | Balance at the end of the period |
Moutai Zhaohua (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | 2,000,000,000.00 | 1,383,129.22 | 2,001,383,129.22 | |
Moutai Jinshi (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | 2,000,000,000.00 | 1,056,773.35 | 2,001,056,773.35 | |
Total | 4,000,000,000.00 | 2,439,902.57 | 4,002,439,902.57 |
3. Matters not disclosed in the temporary announcement
□Applicable √N/A
(IV) Related debt transactions
1. Matters disclosed in the temporary announcement without subsequent progress or change
□Applicable √N/A
2. Matters disclosed in the temporary announcement with subsequent progress or change
□Applicable √N/A
3. Matters not disclosed in the temporary announcement
□Applicable √N/A
(V) Financial business between the Company and the financial company with which the Companyis associated, the financial company in which the Company holds a majority of shares and the relatedparties
√Applicable □N/A
1. Deposit business
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Related parties | Related relationship | Maximum daily deposit limit | Scope of deposit interest rate | Balance at the beginning of the period | Amount in the current period | Balance at the end of the period | |
Total amount deposited in the current period | Total amount withdrawn in the current period | ||||||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | 3,334,281,673.28 | 252,535,693,870.38 | 252,397,840,528.93 | 3,472,135,014.73 | ||
Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | 4,349,581,600.42 | 8,299,958,412.44 | 10,321,234,198.33 | 2,328,305,814.53 | ||
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 1,655,007,713.02 | 6,499,906,475.48 | 6,299,814,668.62 | 1,855,099,519.88 | ||
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 23,867,085.01 | 726,878,978.96 | 252,979,804.19 | 497,766,259.78 | ||
Guizhou Zunpeng Liquor Co., Ltd. | Others | 294,795,599.01 | 2,905,934,358.27 | 2,733,713,361.46 | 467,016,595.82 | ||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | 300,901,972.62 | 1,442,906,657.77 | 1,289,566,178.70 | 454,242,451.69 | ||
ChangLi Moutai Wine Trade Co., Ltd. | Others | 233,713,993.20 | 1,595,534,063.80 | 1,510,134,457.11 | 319,113,599.89 | ||
Xunfeng Technology (Guizhou) Co., Ltd. | Others | - | 451,308,247.64 | 200,103,157.21 | 251,205,090.43 | ||
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 244,758,921.61 | 695,719,399.82 | 705,060,995.42 | 235,417,326.01 | ||
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | Others | 19,698,475.42 | 1,200,322,459.99 | 998,324,821.18 | 221,696,114.23 | ||
Guizhou Zunyi Moutai Airport Co., Ltd. | Holding subsidiary of the parent company | 286,597,483.86 | 817,234,168.50 | 889,889,546.75 | 213,942,105.61 | ||
Kweichow Moutai Chun Marketing Company | Others | 208,380,623.01 | 2,539,428.72 | 16,874,886.70 | 194,045,165.03 | ||
Guizhou Renhuai Renshuai Liquor Co., Ltd. | Others | 11,670,729.18 | 433,151,519.46 | 286,847,303.41 | 157,974,945.23 | ||
Beijing Moutai Trade Co., Ltd. | Wholly-owned subsidiary of the parent company | 113,853,429.58 | 843,204,744.74 | 819,949,743.53 | 137,108,430.79 | ||
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | Others | 633,074,824.51 | 3,786,747,745.10 | 4,293,028,444.09 | 126,794,125.52 | ||
Kweichow Moutai Distillery Group | Holding subsidiary | 6,874,199.52 | 736,461,977.00 | 617,570,013.24 | 125,766,163.28 |
Changli Winery Co., Ltd. | of the parent company | ||||||
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Others | 152,061,971.18 | 958,067,031.87 | 990,996,370.26 | 119,132,632.79 | ||
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | 157,012,780.22 | 5,246,540,909.41 | 5,288,416,827.08 | 115,136,862.55 | ||
Shanghai Kweichow Moutai Industrial Co., Ltd. | Wholly-owned subsidiary of the parent company | 43,579,726.72 | 422,872,926.11 | 368,627,431.93 | 97,825,220.90 | ||
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Holding subsidiary of the parent company | 382,233,628.98 | 1,893,596,780.09 | 2,180,145,571.97 | 95,684,837.10 | ||
Shanghai Moutai Trading Co., Ltd. | Others | 52,064,594.69 | 542,318,554.66 | 509,841,849.44 | 84,541,299.91 | ||
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 208,512.26 | 144,907,430.02 | 64,020,779.40 | 81,095,162.88 | ||
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | Wholly-owned subsidiary of the parent company | 50,995,943.44 | 103,583,795.75 | 76,160,438.22 | 78,419,300.97 | ||
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | Others | 48,833,771.36 | 217,903,822.27 | 204,551,721.96 | 62,185,871.67 | ||
Guizhou Shuanglong Feitian Supply Chain Management Co., Ltd. | Others | - | 240,693,026.57 | 193,251,441.72 | 47,441,584.85 | ||
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | Others | 26,094,729.25 | 137,195,605.54 | 119,428,716.37 | 43,861,618.42 | ||
Kweichow Moutai Hospital | Others | - | 100,354,955.39 | 58,092,528.49 | 42,262,426.90 | ||
Guizhou Jiuyuan Property Co., Ltd. | Others | 29,753,148.43 | 61,927,854.22 | 63,101,720.16 | 28,579,282.49 | ||
Guizhou Fuminghang Packaging Co., Ltd. | Others | 11,394,642.58 | 108,772,469.02 | 95,970,295.15 | 24,196,816.45 | ||
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | Others | 89,086,167.96 | 153,388,809.08 | 219,281,050.40 | 23,193,926.64 | ||
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Others | 7,340,557.09 | 277,270,775.22 | 271,358,002.81 | 13,253,329.50 | ||
Guizhou Xinhuaxi Glass Co., Ltd. | Others | 24,457,923.23 | 121,836,019.69 | 136,464,129.76 | 9,829,813.16 | ||
Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. | Others | 60,916,598.81 | 542,500,251.89 | 597,215,918.04 | 6,200,932.66 | ||
Kweichow Moutai Group Health Industry Co., Ltd. | Others | 19,125,210.06 | 121,127,127.23 | 137,210,898.79 | 3,041,438.50 | ||
Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. | Wholly-owned subsidiary of the parent company | 1,094,520.85 | 727,295.98 | 1,192,966.24 | 628,850.59 | ||
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Holding subsidiary of the parent company | 5,107.60 | 150,397,054.08 | 150,198,516.90 | 203,644.78 | ||
Moutai College | Others | - | 407,444,159.82 | 407,305,203.00 | 138,956.82 | ||
Moutai CCB (Guizhou) Investment Fund Management Co., Ltd. | Wholly-owned subsidiary of the parent company | 5,287.91 | 145.93 | 22.93 | 5,410.91 |
Moutai (Guizhou) Private Fund Management Co., Ltd. | Holding subsidiary of the parent company | 4,032.97 | 34.44 | 17.20 | 4,050.21 | ||
Moutai (Guizhou) Investment Fund Partnership (Limited Partnership) | Holding subsidiary of the parent company | 846.41 | 7.23 | 3.61 | 850.03 | ||
Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | Others | 711,787.31 | 2,085,863.99 | 2,797,613.55 | 37.75 | ||
Guizhou Hengdao Danlin Agricultural Technology Development Co., Ltd. | Others | 27.95 | 0.24 | 0.12 | 28.07 | ||
Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | Others | 3,514.91 | 11,845,112.76 | 11,848,627.67 | |||
Total | / | / | / | 12,874,043,355.42 | 294,940,860,326.57 | 295,780,410,772.04 | 12,034,492,909.95 |
Note: The above deposit interest rate ranges from 0.35% to 1.50%.
Interest paid to related parties
Related party | This reporting period |
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 31,339,938.02 |
China Kweichow Moutai Distillery (Group) Co., Ltd. | 29,708,003.52 |
Kweichow Moutai Group Marketing Co., Ltd. | 21,399,365.25 |
Guizhou Zunpeng Liquor Co., Ltd. | 4,017,175.57 |
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 3,189,584.79 |
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 3,111,083.63 |
ChangLi Moutai Wine Trade Co., Ltd. | 2,458,664.23 |
Kweichow Moutai Chun Marketing Company | 2,425,584.26 |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 2,052,349.58 |
Guizhou Zunyi Moutai Airport Co., Ltd. | 1,970,595.88 |
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | 1,636,584.81 |
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 1,619,805.58 |
Xunfeng Technology (Guizhou) Co., Ltd. | 1,205,090.43 |
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | 1,036,722.16 |
Shanghai Kweichow Moutai Industrial Co., Ltd. | 934,193.97 |
Kweichow Moutai Distillery Group Changli Winery Co., Ltd. | 840,830.43 |
Beijing Moutai Trade Co., Ltd. | 600,646.94 |
Shanghai Moutai Trading Co., Ltd. | 535,645.74 |
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 466,072.54 |
Guizhou Jiuyuan Property Co., Ltd. | 446,008.34 |
Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. | 391,570.92 |
Moutai College | 321,413.03 |
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | 278,820.47 |
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | 200,840.35 |
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | 198,537.18 |
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 194,364.37 |
Kweichow Moutai Distillery (Group) Sanya Investment Industrial | 180,636.29 |
Co., Ltd. | |
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | 151,598.58 |
Guizhou Fuminghang Packaging Co., Ltd. | 139,139.95 |
Guizhou Shuanglong Feitian Supply Chain Management Co., Ltd. | 119,459.65 |
Guizhou Renhuai Renshuai Liquor Co., Ltd. | 87,955.56 |
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | 68,154.66 |
Guizhou Xinhuaxi Glass Co., Ltd. | 36,615.62 |
Kweichow Moutai Hospital | 75,730.99 |
Kweichow Moutai Group Health Industry Co., Ltd. | 27,025.67 |
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 26,650.62 |
Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. | 7,050.74 |
Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | 570.90 |
Moutai CCB (Guizhou) Investment Fund Management Co., Ltd. | 23.00 |
Moutai (Guizhou) Private Fund Management Co., Ltd. | 17.24 |
Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 4.46 |
Moutai (Guizhou) Investment Fund Partnership (Limited Partnership) | 3.62 |
Guizhou Hengdao Danlin Agricultural Technology Development Co., Ltd. | 0.12 |
Total | 113,500,129.66 |
2. Loan business
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Related parties | Related relationship | Loan limit | Scope of loan interest rate | Balance at the beginning of the period | Amount in the current period | Balance at the end of the period | |
Total loan amount in the current period | Total repayment amount in the current period | ||||||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | 3,500,000,000.00 | 3.65% | 3,500,000,000.00 | 3,500,000,000.00 | ||
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | 499,963,530.81 | 2.30% | 499,963,530.81 | 499,963,530.81 | ||
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Others | 78,180,000.00 | 3.65% | 57,730,000.00 | 20,450,000.00 | 20,140,000.00 | 58,040,000.00 |
Total | / | / | / | 3,557,730,000.00 | 520,413,530.81 | 3,520,140,000.00 | 558,003,530.81 |
Interest charged to related parties
Item | Related parties | Current reporting period |
Interest income on loans | China Kweichow Moutai Distillery (Group) Co., Ltd. | 60,502,489.52 |
Interest income on loans | Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 2,732,535.18 |
Interest income on loans | Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 2,019,139.63 |
Total | 65,254,164.33 |
3. Credit business or other financial business
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Related parties | Related | Business | Total amount | Amount actually |
relationship | type | occurred | ||
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Holding subsidiary of the parent company | Credit loans | 150,000,000.00 | |
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Others | Pledge loans | 285,000,000.00 | 58,040,000.00 |
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | Credit loans | 2,000,000,000.00 | 499,963,530.81 |
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Credit loans | 10,000,000.00 |
4. Other instructions
√Applicable □N/A
Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company, purchased the bondsissued by Guiyang GY Financial Leasing Co., Ltd. from the open market, with the total price of RMB
20.00 million, for which the interest income recognized in the current period amounted to RMB 706,800.As of the end of the period, the Debt investment and interest receivable had been collected in full.
(VI) Others
□Applicable √N/A
XIII. Significant contracts and their performance(I) Trusteeship, contracting and leasing
1. Trusteeship
□Applicable √N/A
2. Contracting
□Applicable √N/A
3. Leasing
□Applicable √N/A
(II) Major guarantees
□Applicable √N/A
(III) Entrusting others to manage cash assets
1. Entrusted assets management
(1) Overview of entrusted assets management
□Applicable √N/A
Other information
□Applicable √N/A
(2) Single entrusted wealth management
□Applicable √N/A
Other information
□Applicable √N/A
(3) Principal entrusted assets management
□Applicable √N/A
2. Entrusted loans
(1) Overview of entrusted loans
□Applicable √N/A
Other information
□Applicable √N/A
(2) Principal entrusted loans
□Applicable √N/A
Other information
□Applicable √N/A
(3) Provision for impairment of entrusted loans
□Applicable √N/A
3. Other information
□Applicable √N/A
(IV) Other significant contracts
□Applicable √N/A
XIV. Description of the use progress of the funds raised
□Applicable √N/A
XV. Instruction of other major events that have a significant impact on investors’ value judgmentsand investment decisions
□Applicable √N/A
Section VII Changes in Shares and Information about Shareholders
I. Changes in share capital(I) Changes in shares
1. Changes in shares
During the reporting period, there is no change to the total number of shares and share capital structureof the Company.
2. Explanation of changes in shares
□Applicable √N/A
3. Impact of changes in shares on financial indicators such as earnings per share and net assets pershare in the latest year and the latest period (if any)
□Applicable √N/A
4. Other contents deemed necessary by the Company or required by securities regulators to disclose
□Applicable √N/A
(II) Changes in restricted shares
□Applicable √N/A
II. Securities issuance and listing(I) Issues of securities as of the reporting period
□Applicable √N/A
Explanation of securities issuance as of the reporting period (for bonds with different interest rates in theduration, please explain separately):
□Applicable √N/A
(II) Changes in the Company’s total shares and shareholder structure, and changes in theCompany’s asset and liability structure
□Applicable √N/A
(III) Existing employees’ shares
□Applicable √N/A
III. Shareholders and actual controllers(I) Total number of shareholders
The total number of ordinary shareholders as of the end of the reporting period | 161,640 |
The total number of ordinary shareholders at the end of the previous month before the disclosure date of the annual report | 161,009 |
(II) Shareholdings of the top ten shareholders and top ten tradable shareholders (or shareholderswithout restrictions on sales) as of the end of the reporting period
Unit: Share
Name of shareholder (Full name) | Changes in the reporting period | Number of shares held at the end of the period | Ratio (%) | Number of shares with trading limited conditions held | Pledge, marking or freezing | Nature of shareholder | |
Stock status | Quantity | ||||||
China Kweichow Moutai Distillery (Group) Co., Ltd. | 919,621 | 679,211,576 | 54.07 | None | State-owned legal person | ||
Hong Kong Securities Clearing Company Ltd. | 1,514,277 | 86,312,919 | 6.87 | Unknown | Unknown | ||
Guizhou State-owned Capital Operation Co., Ltd. | 0 | 56,996,777 | 4.54 | Unknown | State-owned legal person | ||
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 37,600 | 27,849,688 | 2.22 | None | State-owned legal person | ||
Central Huijin Asset Management Co., Ltd. | 10,397,104 | 0.83 | Unknown | State-owned legal person | |||
China Securities Finance Corporation Limited | 8,039,447 | 0.64 | Unknown | Unknown | |||
Shenzhen Jinhui Rongsheng Wealth Management Co., Ltd.- Jinhui Rongsheng No.3 Private Equity Investment Fund | 318,199 | 7,922,478 | 0.63 | Unknown | Unknown | ||
Industrial and Commercial Bank of China - SSE 50 Trading Open Index Securities Investment Fund | 2,275,242 | 7,654,402 | 0.61 | Unknown | Unknown | ||
Zhuhai Ruifeng Huibang Assets Management Co., Ltd.-Ruifeng Huibang No.3 Private Equity Investment Fund | -752,637 | 6,751,030 | 0.54 | Unknown | Unknown | ||
Bank of China Limited - LOF Graded Securities Investment Fund | -523,086 | 4,922,717 | 0.39 | Unknown | Unknown | ||
Shareholding of top ten shareholders without sales restriction |
Name of shareholder | Quantity of the circulating shares without sales restriction | Category and quantity of shares | |
Category | Quantity | ||
China Kweichow Moutai Distillery (Group) Co., Ltd. | 679,211,576 | RMB Ordinary shares | 679,211,576 |
Hong Kong Securities Clearing Company Ltd. | 86,312,919 | RMB Ordinary shares | 86,312,919 |
Guizhou State-owned Capital Operation Co., Ltd. | 56,996,777 | RMB Ordinary shares | 56,996,777 |
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 27,849,688 | RMB Ordinary shares | 27,849,688 |
Central Huijin Asset Management Co., Ltd. | 10,397,104 | RMB Ordinary shares | 10,397,104 |
China Securities Finance Corporation Limited | 8,039,447 | RMB Ordinary shares | 8,039,447 |
Shenzhen Jinhui Rongsheng Wealth Management Co., Ltd.- Jinhui Rongsheng No.3 Private Equity Investment Fund | 7,922,478 | RMB Ordinary shares | 7,922,478 |
Industrial and Commercial Bank of China - SSE 50 Trading Open Index Securities Investment Fund | 7,654,402 | RMB Ordinary shares | 7,654,402 |
Zhuhai Ruifeng Huibang Assets Management Co., Ltd.-Ruifeng Huibang No.3 Private Equity Investment Fund | 6,751,030 | RMB Ordinary shares | 6,751,030 |
Bank of China Limited - LOF Graded Securities Investment Fund | 4,922,717 | RMB Ordinary shares | 4,922,717 |
Notes to relations among the above-mentioned shareholders or acting in concert | Among the above shareholders, there is related relationship between China Kweichow Moutai Distillery (Group) Co., Ltd. and Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. Apart from that, the Company does not know any related relationship among other shareholders and any parties acting in concert. |
Shares lent by top 10 shareholders through refinancing
√Applicable □N/A
The status of the top ten shareholders' participation in securities lending and borrowing transactions | ||||
Shareholder name | Holdings in ordinary account | Shares borrowed for securities | Holdings in ordinary account | Shares borrowed for securities |
(full name) | and credit account at the beginning of the period | lending at the beginning of the period and have not yet been returned | and credit account at the end of the period | lending at the end of the period and have not yet been returned | ||||
Total quantity | Proportion (%) | Total quantity | Proportion (%) | Total quantity | Proportion (%) | Total quantity | Proportion (%) | |
Industrial and Commercial Bank of China - Shanghai Stock Exchange 50 Exchange Traded Open-End Index Securities Investment Fund | 5,379,160 | 0.43 | 0 | 0 | 7,654,402 | 0.61 | 54,400 | 0.0043 |
Changes in top 10 shareholders compared with the prior period
□Applicable √N/A
Shareholding quantity of top ten shareholders with sales restriction and the sales restriction
□Applicable √N/A
(III) Strategic investors or general legal persons become the top 10 shareholders due to placementof new shares
□Applicable √N/A
IV. Controlling shareholders and actual controllers(I) Controlling shareholders1 Legal person
√Applicable □N/A
Name | China Kweichow Moutai Distillery (Group) Co., Ltd. |
Legal Representative | Ding Xiongjun |
Date of establishment | January 24, 1998 |
Main business | Production and operation of alcoholic products (main business); production technology consulting and services of alcoholic products; production and sales of packaging materials and beverages; catering, accommodation, tourism, logistics and transportation; import and export trade business; Internet industry; real estate development and leasing, parking lot management; education, health; ecological agriculture.. |
Shareholdings of other domestic and overseas listed companies that controlled and participated in during the reporting period | Holding 0.24% shares of Bank of Communications Co., Ltd.; Holding 3.97% shares of Huachuang Yunxin Digital Technology Co., Ltd.; Holding 1.45% shares of Bank of Guiyang Co., Ltd.; Holding 10.05% shares of Guizhou BC&TV Information Network Co., Ltd.; Holding 12% shares of Bank of Guizhou Co., Ltd. |
2 Natural person
□Applicable √N/A
3 Special explanation that the Company does not have any controlling shareholder
□Applicable √N/A
4. Notes to the changes in the controlling shareholders during the reporting period
□Applicable √N/A
5 Block diagram of the property right and control relationship between the Company and thecontrolling shareholders
√Applicable □N/A
(II) The actual controller1 Legal person
√Applicable □N/A
Name | State-owned Assets Supervision and Administration Commission of Guizhou Province |
The person in charge or the legal representative of the entity | Yang Xiangdong |
2 Natural person
□Applicable √N/A
3 Special instructions for the fact that the Company does not have an actual controller
□Applicable √N/A
4 Explanation on the change of the Company’s control during the reporting period
□Applicable √N/A
5 Block diagram of the property rights and control relationship between the Company and theactual controller
√Applicable □N/A
6 The actual controller controls the Company through trust or other asset management methods
□Applicable √N/A
(III) Other information about the controlling shareholder and actual controller
□Applicable √N/A
V. The accumulative number of pledged shares of the Company’s controlling shareholder or thelargest shareholder and its persons acting in concert account for more than 80% of the Company’sshares held by them
□Applicable √N/A
VI. Other legal person shareholders holding more than 10% of the shares
□Applicable √N/A
VII. Explanation of share restriction and reduction
□Applicable √N/A
VIII. The specific implementation of share repurchase during the reporting period
□Applicable √N/A
Section VIII Preferred Shares
□Applicable √N/A
Section IX Information about BondI. Corporate bonds, company bonds and non-financial corporate debt financing instruments
□Applicable √N/A
II. Convertible corporate bonds
□Applicable √N/A
Section X Financial ReportI. Audit report
√Applicable □N/A
Baker Tilly China [2024] No.23234
To the shareholders of Kweichow Moutai Co., Ltd.Ⅰ. OpinionWe have audited the financial statements of Kweichow Moutai Co., Ltd. (hereinafter referred to as the“Kweichow Moutai”), which comprise the consolidated balance sheet as at December 31,2023,consolidated income statement, consolidated cash flow statement, consolidated statement of changes inshareholders' equity for the year then ended, and consolidated notes to the financial statements.In our opinion, the consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Kweichow Moutai as at December 31,2023, and the result ofoperations and the consolidated cash flows for the year then ended in accordance with AccountingStandards for Business Enterprises and Accounting System for Business Enterprises.
Ⅱ. Basis of opinionWe have conducted the audit in accordance with the regulations of Auditing Standards for ChineseCertified Public Accountants. The part of “Auditor’s responsibility” of the report further stated ourresponsibilities under the standards.According to the code of professional ethics for the Chinese Certified Public Accountants, we areindependent of the Kweichow Moutai and perform other responsibilities in the field of professional ethics.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.Ⅲ. Emphasis of MatterKey audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the consolidated financial statements of the current period. These matters were addressed in thecontext of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon,and we do not provide a separate opinion on these matters.Key audit matters identified in our audit are summarized as follows:
Recognition of the operating revenueDisclosure of the relationship and transactions with related parties
Auditor’s Report(Continued)
Baker Tilly China [2024] No.23234
Key Audit Matters | How these matters were addressed in the audit |
(I) Recognition of the operating revenue
(I) Recognition of the operating revenue
For relevant disclosures, pleaserefer to the notes to the financialstatements "3.19 Revenue" and"6.39 Operating revenue".In 2023, the operating revenuepresented in the financial statementswas RMB147,693,605,000.00. Therevenue from the sale of Maotailiquor and Maotai series liquor isrecognized when the control of thegoods has been transferred to thecustomer, specifically at the time ofconfirmation of the receipt of thegoods by the customer according tothe agreement of the sales contract.As operating revenue is one of theKweichow Moutai's keyperformance indicators, we considerthe recognition of the KweichowMoutai's operating revenue as a keyaudit matter.
For relevant disclosures, please refer to the notes to the financial statements "3.19 Revenue" and "6.39 Operating revenue". In 2023, the operating revenue presented in the financial statements was RMB147,693,605,000.00. The revenue from the sale of Maotai liquor and Maotai series liquor is recognized when the control of the goods has been transferred to the customer, specifically at the time of confirmation of the receipt of the goods by the customer according to the agreement of the sales contract. As operating revenue is one of the Kweichow Moutai's key performance indicators, we consider the recognition of the Kweichow Moutai's operating revenue as a key audit matter. | The procedures we performed during the audit of the 2023 financial statements consisted primarily of: 1. Understanding and evaluating the design of key internal control of the management related to the revenue recognition, and testing the operational effectiveness thereof; 2. Conducting a sampling inspection of the sales contract to identify the conditions and terms relevant to the transfer of the control over goods and assess whether the time-point for revenue recognition meets the requirements of the Accounting Standards for Business Enterprises; 3. Analyzing the revenue and gross profit in light of the product type, and making judgment on whether there is the abnormal fluctuation in the revenue amount in the current period; 4. Selecting a sample of revenue transactions recorded during the year, verifying the original documents (including invoices, sales contracts and warehouse receipts) at the time of revenue recognition, and evaluating the reasonableness of the related revenue recognition policies; 5. Selecting a sample of sales transactions conducted near the year end, and examining relevant supporting documentation (including delivery notes or documentation from customers confirming receipt of goods) to assess whether the revenue is recognized in the appropriate accounting period. |
(II) Disclosure of the relationship and transactions with related parties:
For relevant disclosures, please refer to the notes to the financial statements "13 Relationship and transactions with related parties". The Kweichow Moutai's related transactions with its related parties in 2023 involved significant amounts and different transaction categories, including sales of goods to, purchases of raw materials and acceptance of labor services from, acquisition of funds (absorption of deposits) from and provision of loans to related parties. The identification of related party relationships and the completeness of disclosure of related transactions are the key audit matters. We have therefore identified the related-party relationships, the transaction fairness and the disclosure completeness as the key audit matters. | The procedures we performed during the audit of the 2023 financial statements consisted primarily of: 1. Understanding the Kweichow Moutai's process for identifying related parties, evaluating and testing the Kweichow Moutai's internal control over the identification and disclosure of related-party relationships and transactions. 2. Obtaining information from the management and those charged with governance to identify the names of all known related parties, and performing the following audit procedures in respect of such information's completeness: (1) Checking it with the related-party relationship statements derived from the financial system and the information obtained from other public sources; (2) Reviewing significant sales, purchases and other contracts to identify the existence of undisclosed related-party relationships; and (3) Reviewing statutory records such as shareholders' records, register of shareholders, minutes of shareholders' or governance meetings, etc., to identify whether there are related parties that the management has not informed. 3. Acquiring a breakdown of related-arty transaction amounts and balances from the management and implementing the following procedures: (1) Reconciling them with the financial records; (2) Sampling and checking the reconciliation results of the related-arty transaction amounts and balances; and (3) Certify the related-arty transaction amounts and balances by sampling. 4. Checking whether the related-party relationships and transactions have been fully disclosed in accordance with the requirements of the Accounting Standards for Business Enterprises. 5. Comparing the transaction prices of related parties with those of non-related parties to verify the fairness of the related-party transactions. |
Ⅳ. Emphasis of MatterThe directors of the Kweichow Moutai are responsible for the other information. The other informationcomprises the information included in the annual report, but does not include the financial statementsand our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.Ⅴ. Responsibilities of directors and those charged withgovernance for the financial statementsThe directors of the Kweichow Moutai are responsible for the preparation of the financial statementsthat give a true and fair view in accordance with the disclosure requirements of Accounting Standardsfor Business Enterprises, and designing, implementing and maintaining internal control that is necessaryto ensure the financial statements are free from material misstatement, whether due to fraud or error.In preparing the financial statements, the directors are responsible for assessing the Kweichow Moutai’sability to continue as a going concern, disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the directors either intend to liquidate the KweichowMoutai or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Kweichow Moutai’s financialreporting process.Ⅵ. Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.As part of an audit in accordance with CSAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to providea basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the directors.
(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Kweichow Moutai’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists,we are required to draw attention in ourauditor’s report to the related disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Kweichow Moutai tocease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Kweichow Moutai to express an opinion on the financial statements. Weare responsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.We communicated with governance level about the planned audit scope and schedule and significantaudit findings, including communicating the notable internal control flaws we identified in the audit.We also provide the governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, related safeguards.From the matters communicated with the governance, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements of the current period and are thereforethe key audit matters. We describe these matters in our auditor’s report unless law or regulationprecludespublic disclosure about the matter or when, in extremely rare circumstances, we determine thata matter should not be communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
Beijing, China April 2, 2024 | Chinese Certified Public Accountant: (Project Partner): |
Chinese Certified Public Accountant: | |
Chinese Certified Public Accountant: |
II. Financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 31, 2023Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | Notes | 31-Dec-23 | 31-Dec-22 |
Current assets: | |||
Cash and Cash equivalents | 1 | 69,070,136,376.12 | 58,274,318,733.23 |
Settlements Provision | |||
Loans to banks and other financial institutions | 2 | 105,553,836,462.58 | 116,172,711,554.59 |
Held-for-trading financial assets | 3 | 400,712,059.93 | |
Derivative financial assets | |||
Notes receivable | 4 | 13,933,440.00 | 105,453,212.00 |
Accounts receivable | 5 | 60,373,410.41 | 20,937,144.00 |
Financing receivables | |||
Prepayments | 6 | 34,585,111.79 | 897,377,162.27 |
Insurance premium receivable | |||
Due from reinsurers | |||
Reinsurance contract reserves receivable | |||
Other receivables | 7 | 27,502,107.30 | 31,818,622.84 |
Including: Interest receivable | |||
Dividends receivable | |||
Financial assets purchased under agreements to resell | 8 | 3,504,849,885.05 | |
Inventories | 9 | 46,435,185,061.53 | 38,824,374,236.24 |
Contract assets | |||
Assets classified as held for sale | |||
Current portion of non-current assets | 10 | 2,123,601,333.33 | |
Other current assets | 11 | 71,403,906.57 | 160,843,674.42 |
Total current assets | 225,172,517,821.28 | 216,611,435,672.92 | |
Non-current assets: | |||
Loans and advances | 12 | 2,130,818,189.27 | 4,134,744,407.92 |
Debt investment | 13 | 5,323,002,071.02 | 380,685,319.09 |
Other debt investments |
Long-term receivables | |||
Long-term equity investments | |||
Other equity instruments investments | |||
Other non-current financial assets | 14 | 4,002,439,902.57 | |
Investment properties | 15 | 4,138,545.33 | 5,335,046.99 |
Fixed assets | 16 | 19,909,280,655.97 | 19,742,622,547.86 |
Construction in progress | 17 | 2,137,464,700.45 | 2,208,329,892.95 |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use asset | 18 | 314,205,484.56 | 402,551,533.46 |
Intangible assets | 19 | 8,572,267,313.84 | 7,083,177,226.45 |
Development expenditures | 20 | 218,015,555.49 | 190,536,632.60 |
Goodwill | |||
Long-term prepaid expenses | 21 | 160,058,930.14 | 146,455,346.90 |
Deferred tax assets | 22 | 4,645,887,425.10 | 3,594,952,468.88 |
Other non-current assets | 23 | 109,563,497.23 | |
Total non-current assets | 47,527,142,270.97 | 37,889,390,423.10 | |
Total assets | 272,699,660,092.25 | 254,500,826,096.02 | |
Current liabilities: | |||
Short-term borrowings | |||
Borrowing from the central bank | |||
Deposits and balances from banks and other financial institutions | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | |||
Accounts payable | 25 | 3,093,091,103.67 | 2,408,371,053.69 |
Receipts in advance | |||
Contract liabilities | 26 | 14,125,755,802.29 | 15,471,920,924.98 |
Financial assets sold under agreements to buy | |||
Customer deposits and balances from banks and other financial institutions | 27 | 12,034,492,909.95 | 12,874,043,355.42 |
Customer brokerage deposits | |||
Securities underwriting brokerage deposits | |||
Payroll and employee benefits payable | 28 | 5,401,921,213.77 | 4,782,311,242.41 |
Taxes payable | 29 | 6,949,663,893.87 | 6,896,555,423.83 |
Other payables | 30 | 5,213,133,685.87 | 4,543,842,833.87 |
Including: Interest payable | |||
Dividend payable | |||
Fees and commission payable | |||
Payable reinsurance |
Liabilities classified as held for sale | |||
Current portion of non-current liabilities | 31 | 57,054,879.48 | 109,351,155.28 |
Other current liabilities | 32 | 1,822,498,012.30 | 1,979,272,808.90 |
Total current liabilities | 48,697,611,501.20 | 49,065,668,798.38 | |
Non-current liabilities: | |||
Insurance reserves | |||
Long-term borrowings | |||
Bonds payable | |||
Including: Preference share | |||
Perpetual debt | |||
Lease liabilities | 33 | 266,636,234.04 | 334,447,942.79 |
Long-term Payable | |||
Long-term payroll and employee benefits payable | |||
Provisions | |||
Deferred income | |||
Deferred tax liabilities | 22 | 78,943,062.19 | 162,628,090.99 |
Other non-current liabilities | |||
Total non-current liabilities | 345,579,296.23 | 497,076,033.78 | |
Total liabilities | 49,043,190,797.43 | 49,562,744,832.16 | |
Owners' equity (or shareholders' equity): | |||
Paid-in capital | 34 | 1,256,197,800.00 | 1,256,197,800.00 |
Other equity instruments | |||
Including: Preference share | |||
Perpetual debt | |||
Capital reserve | 35 | 1,374,964,415.72 | 1,374,964,415.72 |
Less: treasury shares | |||
Other comprehensive income | 36 | -6,061,727.51 | -10,776,907.33 |
Special reserve | |||
Surplus reserve | 37 | 38,998,763,095.13 | 32,520,123,399.97 |
General reserve | 38 | 1,061,529,724.00 | 1,061,529,724.00 |
Retained earnings | 39 | 172,983,178,300.09 | 161,278,002,807.10 |
Equity attributable to owners of the parent | 215,668,571,607.43 | 197,480,041,239.46 | |
Non-controlling interests | 7,987,897,687.39 | 7,458,040,024.40 | |
Total shareholders’ equity | 223,656,469,294.82 | 204,938,081,263.86 | |
Total liabilities and shareholders' equity | 272,699,660,092.25 | 254,500,826,096.02 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
COMPANY STATEMENT OF FINANCIAL POSITION
December 31, 2023Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | Notes | 31-Dec-23 | 31-Dec-22 |
Current assets: | |||
Cash and Cash equivalents | 72,639,127,443.08 | 69,397,227,501.61 |
Held-for-trading financial assets | |||
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | 1 | 17,178,545,925.65 | 20,670,923,010.62 |
Financing receivables | |||
Prepayments | 18,614,923.06 | 883,947,665.69 | |
Other receivables | 2 | 15,880,057.16 | 15,092,761.22 |
Including: Interest receivable | |||
Dividends receivable | |||
Inventories | 44,516,042,266.73 | 37,214,843,706.27 | |
Contract assets | |||
Assets classified as held for sale | |||
Current portion of non-current assets | 2,123,601,333.33 | ||
Other current assets | 6,651,365.50 | 127,580,648.65 | |
Total current assets | 134,374,861,981.18 | 130,433,216,627.39 | |
Non-current assets: | |||
Debt investment | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 3 | 1,610,535,587.55 | 1,624,535,587.55 |
Other equity instruments investments | |||
Other non-current financial assets | 4,002,439,902.57 | ||
Investment properties | 4,138,545.33 | ||
Fixed assets | 19,465,206,198.98 | 19,278,963,775.03 | |
Construction in progress | 2,095,013,288.53 | 2,151,379,751.61 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use asset | 157,783,819.40 | 207,871,591.22 | |
Intangible assets | 8,567,282,703.63 | 7,077,311,242.16 | |
Development expenditures | 218,015,555.49 | 190,536,632.60 | |
Goodwill | |||
Long-term prepaid expenses | 125,398,509.50 | 127,500,000.29 | |
Deferred tax assets | 854,127,274.69 | 789,682,773.38 | |
Other non-current assets | 109,563,497.23 | ||
Total non-current assets | 37,209,504,882.90 | 31,447,781,353.84 | |
Total assets | 171,584,366,864.08 | 161,880,997,981.23 | |
Current liabilities: | |||
Short-term borrowings | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | |||
Accounts payable | 2,986,351,679.18 | 2,407,574,612.21 | |
Receipts in advance | |||
Contract liabilities | 21,950,467.31 | 1,179,446.26 |
Payroll and employee benefits payable | 5,211,529,941.77 | 4,617,577,969.34 | |
Taxes payable | 4,148,263,488.21 | 3,875,939,323.83 | |
Other payables | 2,100,265,480.39 | 1,938,855,202.90 | |
Including: Interest payable | |||
Dividend payable | |||
Liabilities classified as held for sale | |||
Current portion of non-current liabilities | 15,940,845.58 | 60,493,144.20 | |
Other current liabilities | 2,853,560.75 | 153,328.01 | |
Total current liabilities | 14,487,155,463.19 | 12,901,773,026.75 | |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Including: Preference share | |||
Perpetual debt | |||
Lease liabilities | 154,907,818.31 | 195,899,845.16 | |
Long-term Payable | |||
Long-term payroll and employee benefits payable | |||
Provisions | |||
Deferred income | |||
Deferred tax liabilities | 39,445,954.85 | 116,608,070.57 | |
Other non-current liabilities | |||
Total non-current liabilities | 194,353,773.16 | 312,507,915.73 | |
Total liabilities | 14,681,509,236.35 | 13,214,280,942.48 | |
Owners' equity (or shareholders' equity): | |||
Paid-in capital | 1,256,197,800.00 | 1,256,197,800.00 | |
Other equity instruments | |||
Including: Preference share | |||
Perpetual debt | |||
Capital reserve | 1,374,303,082.72 | 1,374,303,082.72 | |
Less: treasury shares | |||
Other comprehensive income | |||
Special reserve | |||
Surplus reserve | 38,998,763,095.13 | 32,520,123,399.97 | |
Retained earnings | 115,273,593,649.88 | 113,516,092,756.06 | |
Total shareholders’ equity | 156,902,857,627.73 | 148,666,717,038.75 | |
Total liabilities and shareholders' equity | 171,584,366,864.08 | 161,880,997,981.23 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2023
Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | Notes | 2023 | 2022 |
I. Total revenue | 150,560,330,316.45 | 127,553,959,355.97 | |
Including: Operating revenue | 40 | 147,693,604,994.14 | 124,099,843,771.99 |
Interest income | 41 | 2,866,725,322.31 | 3,454,115,583.98 |
Net earned premiums | |||
Net fee and commission revenue | |||
II. Total operating costs | 46,960,889,468.54 | 39,748,309,616.85 | |
Including: Operating costs | 40 | 11,867,273,851.78 | 10,093,468,616.63 |
Interest expenses | 41 | 113,500,129.93 | 105,584,206.24 |
Fees and commission expenses | 41 | 68,578.57 | 143,141.51 |
Surrenders | |||
Net payments for insurance claims | |||
Net provision of insurance reserve | |||
Policyholder dividends | |||
Reinsurance expenses | |||
Taxes and surcharges | 42 | 22,234,175,898.60 | 18,495,818,534.22 |
Selling expenses | 43 | 4,648,613,585.82 | 3,297,724,190.94 |
General and administrative expenses | 44 | 9,729,389,252.31 | 9,012,191,073.63 |
R&D expenses | 45 | 157,371,873.01 | 135,185,680.40 |
Financial expenses | 46 | -1,789,503,701.48 | -1,391,805,826.72 |
Including: Interest expense | 12,624,628.35 | 12,023,204.77 | |
Interest income | 1,942,301,920.98 | 1,475,422,303.64 | |
Add: Other income | 47 | 34,644,873.86 | 24,505,353.83 |
Investment income/(loss) | 48 | 34,025,967.82 | 63,840,000.00 |
Including: Share of profits or loss of associates and joint ventures | |||
Gain from derecognition of financial assets measured at amortized cost | |||
Exchange gains or losses | |||
Net exposure hedging gains/ (losses) | |||
Gain/ (loss) on the changes in fair value | 49 | 3,151,962.50 | |
Credit impairment losses | 50 | 37,871,293.26 | -14,686,546.25 |
Assets impairment losses | |||
Gain/ (loss) from disposal of assets | 51 | -479,736.97 | 213,235.69 |
III. Operating profit | 103,708,655,208.38 | 87,879,521,782.39 | |
Add: Non-operating income | 52 | 86,779,655.95 | 70,852,285.40 |
Less: Non-Operating expenses | 53 | 132,881,174.52 | 248,884,319.61 |
IV. Profit/(loss) before tax | 103,662,553,689.81 | 87,701,489,748.18 | |
Less: Income tax expense | 54 | 26,141,077,412.01 | 22,325,449,790.30 |
V. Net profit /(loss) | 77,521,476,277.80 | 65,376,039,957.88 | |
(1) Categorized by operation continuity | |||
1. Net profit from continuing operations | 77,521,476,277.80 | 65,376,039,957.88 | |
2. Net profit from discontinuing operations | |||
(2) Categorized by ownership | |||
1. Net profit attributable to owners of the parent | 74,734,071,550.75 | 62,717,467,870.12 | |
2. Net profit attributable to non-controlling interests | 2,787,404,727.05 | 2,658,572,087.76 | |
VI. Other comprehensive income, net of tax | 55 | 4,715,179.82 | 2,240,973.45 |
(1) Other comprehensive income, net of tax, attributable to owners of the parent | 4,715,179.82 | 2,240,973.45 | |
1. Other comprehensive income that will not be reclassified to profit or loss | |||
1.1 Remeasurement gains or losses of a defined benefit plan | |||
1.2 Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
1.3 Changes in fair value of other equity instrument investments | |||
1.4 Changes in fair value of enterprise’s own credit risk | |||
2. Other comprehensive income to be reclassified to profit or loss | 4,715,179.82 | 2,240,973.45 | |
2.1 Other comprehensive income that can be reclassified to profit or loss in equity method | |||
2.2 Changes in fair value of other debt investments | |||
2.3 Amount of financial assets reclassified into other comprehensive income | |||
2.4 Provision for credit impairment of other debt investments | |||
2.5 Cash flow hedging reserves | |||
2.6 Exchange differences on translation of foreign currency financial statements | 4,715,179.82 | 2,240,973.45 | |
2.7 Others | |||
(2) Other comprehensive income, net of tax, attributable to non-controlling interests | |||
VII. Total comprehensive income | 77,526,191,457.62 | 65,378,280,931.33 | |
(1) Total comprehensive income attributable to owners of the parent | 74,738,786,730.57 | 62,719,708,843.57 | |
(2) Total comprehensive income attributable to non-controlling interests | 2,787,404,727.05 | 2,658,572,087.76 | |
VIII. Earnings per share | |||
(1) Basic earnings per share (CNY / share) | 59.49 | 49.93 | |
(2) Diluted earnings per share (CNY / share) | 59.49 | 49.93 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
INCOME STATEMENT OF COMPANYFor the year ended 31 December 2023
Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | Notes | 2023 | 2022 |
I. Total revenue | 4 | 81,415,570,788.59 | 71,301,796,876.93 |
Less: Total operating costs | 4 | 12,072,158,914.05 | 10,420,242,137.46 |
Taxes and surcharges | 21,084,932,938.46 | 17,592,050,587.39 | |
Selling expenses | 1,103,737,062.73 | 838,175,269.31 |
General and administrative expenses | 8,986,759,635.56 | 8,342,403,894.00 | |
Research and development expenses | 157,371,873.01 | 135,185,680.40 | |
Finance expenses | -1,466,635,084.72 | -1,363,150,442.27 | |
Including: Interest expenses (expressed with positive value) | 6,516,690.60 | 7,612,746.94 | |
Interest income (expressed with positive value) | 1,480,404,867.75 | 1,437,004,178.70 | |
Add: Other income | 16,495,748.00 | 9,460,960.94 | |
Investment income/(loss) | 5 | 35,364,314,663.45 | 47,660,330,707.35 |
Including: Share of profits or loss of associates and joint ventures | |||
Gain from derecognition of financial assets measured at amortized cost | |||
Net exposure hedging gains/ (losses) | |||
Gain/ (loss) on the changes in fair value | 2,439,902.57 | ||
Credit impairment losses | -65,274.04 | 2,489,064.82 | |
Assets impairment losses | |||
Gain/ (loss) from disposal of assets | -3,223,587.40 | 343,183.91 | |
II. Operating profit/Loss | 74,857,206,902.08 | 83,009,513,667.66 | |
Add: Non-operating income | 73,556,271.04 | 66,605,379.09 | |
Less: Non-operating expenses | 128,519,882.50 | 242,611,517.77 | |
III.Profit/(loss) before tax | 74,802,243,290.62 | 82,833,507,528.98 | |
Less: Income tax expense | 10,015,846,339.04 | 9,030,426,386.98 | |
IV. Net profit /(loss) | 64,786,396,951.58 | 73,803,081,142.00 | |
(1) Net profit from continuing operations | 64,786,396,951.58 | 73,803,081,142.00 | |
(2) Net profit from discontinuing operations | |||
V. Other comprehensive income, net of tax | |||
(1) Other comprehensive income, net of tax | |||
1. Other comprehensive income that will not be reclassified to profit or loss | |||
2. Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
3. Changes in fair value of other equity instrument investments | |||
4. Changes in fair value of enterprise’s own credit risk | |||
(2) Other comprehensive income to be reclassified to profit or loss | |||
1. Other comprehensive income that can be reclassified to profit or loss in equity method | |||
2. Changes in fair value of other debt investments | |||
3. Amount of financial assets reclassified into other comprehensive income | |||
4. Provision for credit impairment of other debt investments | |||
5. Cash flow hedging reserves | |||
6. Exchange differences on translation of foreign currency financial statements | |||
7. Others | |||
VI. Total comprehensive income | 64,786,396,951.58 | 73,803,081,142.00 | |
VII. Earnings per share |
(1) Basic earnings per share (CNY / share) | 51.57 | 58.75 | |
(2) Diluted earnings per share (CNY / share) | 51.57 | 58.75 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2023
Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | Notes | 2023 | 2022 |
I. Cash flows from operating activities | |||
Cash receipts from the sale of goods and the rendering of services | 163,699,909,417.62 | 140,691,678,592.00 | |
Net increase in customer bank deposits and due to banks and other financial institutions | -810,223,002.76 | -8,916,033,228.67 | |
Net increase in loans from the central bank | |||
Net increase in funds borrowed from other financial institutions | |||
Cash premiums received on original insurance contracts | |||
Net cash received from re-insurance business | |||
Net increase in deposits and investments from insurers | |||
Cash received from interest, fees and commission | 3,018,786,023.42 | 3,247,615,476.04 | |
Net increase in funds deposit | |||
Net increase in repurchase business funds | |||
Net income from securities trading brokerage business | |||
Tax refunds received | 1,500,047.04 | 33,191,912.56 | |
Cash received relating to other operating activities | 56(1) | 2,346,196,470.63 | 2,759,422,171.88 |
Sub-total of cash inflows | 168,256,168,955.95 | 137,815,874,923.81 | |
Cash paid for purchase of goods and services | 11,029,476,036.21 | 8,357,859,151.03 | |
Net increase in loans and payments on behalf of customers | -2,051,930,316.19 | 723,778,672.00 | |
Net increase in deposits with central bank and other financial institutions | 1,570,003,429.01 | 13,037,761,321.90 | |
Payments for claims for original insurance contracts | |||
Net increase in funds lent | 2,500,000,000.00 | ||
Cash paid for interest, fees and commission | 142,896,151.21 | 79,226,410.98 | |
Commissions on insurance policies paid | |||
Cash paid to and on behalf of employee | 13,845,293,907.26 | 11,752,241,598.62 |
Cash paid for taxes | 66,683,472,509.22 | 62,043,324,506.36 | |
Cash paid relating to other operating activities | 56(1) | 7,943,709,518.14 | 5,123,087,432.89 |
Sub-total of cash outflows | 101,662,921,234.86 | 101,117,279,093.78 | |
Net cash flows from operating activities | 66,593,247,721.09 | 36,698,595,830.03 | |
II. Cash flows from investing activities | |||
Cash received from disposal of investments | 56(2) | 7,549,947,301.15 | |
Cash received from investment income | 140,715,000.00 | 5,880,000.00 | |
Net proceeds from disposal of property, plant and equipment, intangible assets and other long-term assets | 24,948,352.95 | 355,149.00 | |
Cash received from disposal of subsidiaries and other business units | |||
Cash received relating to other investing activities | 56(2) | 4,605,886.63 | 4,971,762.18 |
Sub-total of cash inflows | 7,720,216,540.73 | 11,206,911.18 | |
Purchase of property, plant and equipment, intangible assets and other non-current assets | 2,619,755,888.79 | 5,306,546,416.54 | |
Cash paid for investments | 56(2) | 14,817,852,800.00 | 210,000,000.00 |
Net increase in secured loans | |||
Net cash paid for acquisition of a subsidiary and other operating units | |||
Cash paid relating to other investing activities | 56(2) | 7,021,867.10 | 31,486,829.54 |
Sub-total of cash outflows | 17,444,630,555.89 | 5,548,033,246.08 | |
Net cash flows from investing activities | -9,724,414,015.16 | -5,536,826,334.90 | |
III. Cash flows from financing activities | |||
Cash received from investment | |||
Including: Cash receipts from capital contributions from non-controlling interests of subsidiaries | |||
Proceeds from borrowings | |||
Cash receipts relating to other financing activities | |||
Subtotal of cash inflows | |||
Repayments for debts | |||
Cash payments for distribution of dividends or profit and interest expenses | 58,754,786,730.01 | 57,370,196,191.46 | |
Including: Dividends or profit paid to non-controlling shareholders of subsidiaries | 2,204,530,367.41 | 2,618,815,078.45 | |
Cash payments relating to other financing activities | 56(3) | 134,315,261.93 | 54,332,788.37 |
Subtotal of cash outflows | 58,889,101,991.94 | 57,424,528,979.83 | |
Net cash flows from financing activities | -58,889,101,991.94 | -57,424,528,979.83 | |
IV. Effect of exchange rate changes on cash and cash equivalents | 1,718,255.65 | 911,088.01 | |
V. Net increase in cash and cash equivalents | -2,018,550,030.36 | -26,261,848,396.69 | |
Add: Cash and cash equivalents at beginning of year | 152,378,738,982.83 | 178,640,587,379.52 | |
VI. Cash and cash equivalents at end of year | 150,360,188,952.47 | 152,378,738,982.83 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 December 2023
Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | Notes | 2023 | 2022 |
I. Cash flows from operating activities | |||
Cash receipts from the sale of goods and the rendering of services | 94,747,549,529.72 | 60,627,778,647.24 | |
Tax refunds received | |||
Cash received relating to other operating activities | 2,257,446,106.71 | 1,869,230,100.75 | |
Sub-total of cash inflows | 97,004,995,636.43 | 62,497,008,747.99 | |
Cash paid for purchase of goods and services | 11,054,477,987.64 | 8,247,604,843.54 | |
Cash paid to and on behalf of employee | 13,029,936,131.14 | 11,019,897,320.84 | |
Cash paid for taxes | 39,639,038,426.44 | 37,873,356,637.22 | |
Cash paid relating to other operating activities | 4,384,891,703.90 | 2,876,686,272.05 | |
Sub-total of cash outflows | 68,108,344,249.12 | 60,017,545,073.65 | |
Net cash flows from operating activities | 28,896,651,387.31 | 2,479,463,674.34 | |
II. Cash flows from investing activities | |||
Cash received from disposal of investments | 2,014,000,000.00 | ||
Cash received from investment income | 35,474,191,055.51 | 47,596,490,707.35 | |
Net proceeds from disposal of property, plant and equipment, intangible assets and other long-term assets | 16,093,650.00 | 317,509.00 | |
Cash received from disposal of subsidiaries and other business units | |||
Cash received relating to other investing activities | 4,605,886.63 | 4,971,762.18 | |
Sub-total of cash inflows | 37,508,890,592.14 | 47,601,779,978.53 | |
Purchase of property, plant and equipment, intangible assets and other non-current assets | 2,589,885,182.75 | 5,252,006,054.93 | |
Cash paid for investments | 4,000,000,000.00 | ||
Cash Paid for disposal of subsidiaries and other business units | |||
Cash paid relating to other investing activities | 7,021,867.10 | 31,486,829.54 | |
Sub-total of cash outflows | 6,596,907,049.85 | 5,283,492,884.47 | |
Net cash flows from investing activities | 30,911,983,542.29 | 42,318,287,094.06 | |
III. Cash flows from financing activities |
Cash received from investment | |||
Proceeds from borrowings | |||
Cash receipts relating to other financing activities | |||
Subtotal of cash inflows | |||
Repayments for debts | |||
Cash payments for distribution of dividends or profit and interest expenses | 56,550,256,362.60 | 54,751,381,113.01 | |
Cash payments relating to other financing activities | 71,050,469.50 | 19,713,859.66 | |
Subtotal of cash outflows | 56,621,306,832.10 | 54,771,094,972.67 | |
Net cash flows from financing activities | -56,621,306,832.10 | -54,771,094,972.67 | |
IV. Effect of exchange rate changes on cash and cash equivalents | |||
V. Net increase in cash and cash equivalents | 3,187,328,097.50 | -9,973,344,204.27 | |
Add: Cash and cash equivalents at beginning of year | 67,960,589,067.53 | 77,933,933,271.80 | |
VI. Cash and cash equivalents at end of year | 71,147,917,165.03 | 67,960,589,067.53 |
Company Principal: Ding XiongjunAccounting Principal: Jiang YanHead of the Accounting Department: Cai Congying
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
January to December 2023
Prepared by: Kweichow Moutai Co., Ltd.
Monetary Unit: Yuan Currency: RMB
Item | 2023 | ||||||||||||||
Equity attributable to owners of the parent | Non-controlling interests | Total shareholders’ equity | |||||||||||||
Share capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General reserve | Retained earnings | Others | Subtotal | |||||
preference share | Perpetual debt | Others | |||||||||||||
1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,964,415.72 | -10,776,907.33 | 32,522,779,178.88 | 1,061,529,724.00 | 161,301,978,184.73 | 197,506,672,396.00 | 7,458,015,858.08 | 204,964,688,254.08 | ||||||
Add: changes in accounting policies | -2,655,778.91 | -23,975,377.63 | -26,631,156.54 | 24,166.32 | -26,606,990.22 | ||||||||||
Corrections of prior period errors | |||||||||||||||
Others | |||||||||||||||
2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,964,415.72 | -10,776,907.33 | 32,520,123,399.97 | 1,061,529,724.00 | 161,278,002,807.10 | 197,480,041,239.46 | 7,458,040,024.40 | 204,938,081,263.86 | ||||||
3. Increase/(decrease) during the period | 4,715,179.82 | 6,478,639,695.16 | 11,705,175,492.99 | 18,188,530,367.97 | 529,857,662.99 | 18,718,388,030.96 | |||||||||
(1) Total comprehensive income | 4,715,179.82 | 74,734,071,550.75 | 74,738,786,730.57 | 2,787,404,727.05 | 77,526,191,457.62 | ||||||||||
(2) Shareholders’ contributions and reduction | -6,000,000.00 | -6,000,000.00 | |||||||||||||
(i) Shareholders ‘contributions in ordinary share | |||||||||||||||
(ii) Other equity instruments contributions | |||||||||||||||
(iii) Amount of share-based payments recognized in equity | |||||||||||||||
(iv) Others | -6,000,000.00 | -6,000,000.00 | |||||||||||||
(3) Profit distribution | 6,478,639,695.16 | -63,028,896,057.76 | -56,550,256,362.60 | -2,251,547,064.06 | -58,801,803,426.66 | ||||||||||
(i) Transfer to surplus reserve | 6,478,639,695.16 | -6,478,639,695.16 |
(ii) Transfer to general reserve | |||||||||||||||
(iii) Distribution to shareholders | -56,550,256,362.60 | -56,550,256,362.60 | -2,251,547,064.06 | -58,801,803,426.66 | |||||||||||
(iv) Others | |||||||||||||||
(4) Transfer within equity | |||||||||||||||
(i) Capital reserves converted to share capital | |||||||||||||||
(ii) Surplus reserves converted to share capital | |||||||||||||||
(iii) Loss made up by surplus reserves | |||||||||||||||
(iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||||||
(v) Other comprehensive income transferred to retained earnings | |||||||||||||||
(vi) Others | |||||||||||||||
(5) Special reserve | |||||||||||||||
(i) Additions | |||||||||||||||
(ii) Utilisation | |||||||||||||||
(6) Others | |||||||||||||||
4. Closing balance | 1,256,197,800.00 | 1,374,964,415.72 | -6,061,727.51 | 38,998,763,095.13 | 1,061,529,724.00 | 172,983,178,300.09 | 215,668,571,607.43 | 7,987,897,687.39 | 223,656,469,294.82 |
Item | 2022 | ||||||||||||||||
Equity attributable to owners of the parent | Non-controlling interests Capital reserve | Total shareholders’ equity Share capital | |||||||||||||||
Share capital | Other equity instruments | Capital reserve | Share capital | Other equity instruments | Capital reserve | Share capital | Other equity instruments | Capital reserve | Share capital | Other equity instruments | |||||||
preference share | Perpetual debt | Others | |||||||||||||||
1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,964,415.72 | -13,017,880.78 | 25,142,832,818.16 | 1,061,529,724.00 | 160,716,861,920.19 | 189,539,368,797.29 | 7,418,137,908.05 | 196,957,506,705.34 | ||||||||
Add: changes in accounting policies | -3,017,532.39 | -24,637,756.00 | -27,655,288.39 | 145,107.04 | -27,510,181.35 | ||||||||||||
Corrections of prior period errors | |||||||||||||||||
Others | |||||||||||||||||
2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,964,415.72 | -13,017,880.78 | 25,139,815,285.77 | 1,061,529,724.00 | 160,692,224,164.19 | 189,511,713,508.90 | 7,418,283,015.09 | 196,929,996,523.99 | ||||||||
3. Increase/(decreas | 2,240,973.45 | 7,380,308,114.20 | 585,778,642.91 | 7,968,327,730.56 | 39,757,009.31 | 8,008,084,739.87 |
e) during the period | |||||||||||||||
(1) Total comprehensive income | 2,240,973.45 | 62,717,467,870.12 | 62,719,708,843.57 | 2,658,572,087.76 | 65,378,280,931.33 | ||||||||||
(2) Shareholders’ contributions and reduction | |||||||||||||||
(i) Shareholders ‘contributions in ordinary share | |||||||||||||||
(ii) Other equity instruments contributions | |||||||||||||||
(iii) Amount of share-based payments recognized in equity | |||||||||||||||
(iv) Others | |||||||||||||||
(3) Profit distribution | 7,380,308,114.20 | -62,131,689,227.21 | -54,751,381,113.01 | -2,618,815,078.45 | -57,370,196,191.46 | ||||||||||
(i) Transfer to surplus reserve | 7,380,308,114.20 | -7,380,308,114.20 | |||||||||||||
(ii) Transfer to general reserve | |||||||||||||||
(iii) Distribution to shareholders | -54,751,381,113.01 | -54,751,381,113.01 | -2,618,815,078.45 | -57,370,196,191.46 | |||||||||||
(iv) Others | |||||||||||||||
(4) Transfer within equity | |||||||||||||||
(i) Capital reserves converted to share capital | |||||||||||||||
(ii) Surplus reserves converted to share capital | |||||||||||||||
(iii) Loss made up by surplus reserves | |||||||||||||||
(iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||||||
(v) Other comprehensive income transferred to retained earnings | |||||||||||||||
(vi) Others | |||||||||||||||
(5) Special reserve | |||||||||||||||
(i) Additions |
(ii) Utilisation | |||||||||||||||
(6) Others | |||||||||||||||
4. Closing balance | 1,256,197,800.00 | 1,374,964,415.72 | -10,776,907.33 | 32,520,123,399.97 | 1,061,529,724.00 | 161,278,002,807.10 | 197,480,041,239.46 | 7,458,040,024.40 | 204,938,081,263.86 |
Company Principal: Ding XiongjunAccounting Principal: Jiang YanHead of the Accounting Department: Cai Congying
COMPANY STATEMENT OF CHANGES IN EQUITY
January to December 2023
Monetary Unit: Yuan Currency: RMB
Item | Year 2023 | ||||||||||
Share capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total shareholders’ equity | |||
preference share | Perpetual debt | Others | |||||||||
1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,303,082.72 | 32,522,779,178.88 | 113,539,994,766.29 | 148,693,274,827.89 | ||||||
Add: changes in accounting policies | -2,655,778.91 | -23,902,010.23 | -26,557,789.14 | ||||||||
Corrections of prior period errors | |||||||||||
Others | |||||||||||
2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,303,082.72 | 32,520,123,399.97 | 113,516,092,756.06 | 148,666,717,038.75 | ||||||
3. Increase/(decrease) during the period | 6,478,639,695.16 | 1,757,500,893.82 | 8,236,140,588.98 | ||||||||
(1) Total comprehensive income | 64,786,396,951.58 | 64,786,396,951.58 | |||||||||
(2) Shareholders’ contributions and reduction | |||||||||||
(i)Shareholders’ contributions in ordinary share |
(ii) Other equity instruments contributions | |||||||||||
(iii) Amount of share-based payments recognized in equity | |||||||||||
(iv) Others | |||||||||||
(3). Profit distribution | 6,478,639,695.16 | -63,028,896,057.76 | -56,550,256,362.60 | ||||||||
(i) Transfer to surplus reserve | 6,478,639,695.16 | -6,478,639,695.16 | |||||||||
(ii) Distribution to shareholders | -56,550,256,362.60 | -56,550,256,362.60 | |||||||||
(iii) Others | |||||||||||
(4) Transfer within equity | |||||||||||
(i) Capital reserves converted to share capital | |||||||||||
(ii) Surplus reserves converted to share capital | |||||||||||
(iii) Loss made up by surplus reserves | |||||||||||
(iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||
(v) Other comprehensive income transferred to retained earnings | |||||||||||
(vi) Others | |||||||||||
(5). Special reserve | |||||||||||
(i). Additions | |||||||||||
(ii). Utilisation | |||||||||||
(6) Others | |||||||||||
4. Closing balance | 1,256,197,800.00 | 1,374,303,082.72 | 38,998,763,095.13 | 115,273,593,649.88 | 156,902,857,627.73 |
Item | 2022 | ||||||||||
Share capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total shareholders’ equity | |||
preference | Perpetual | Others |
share | debt | ||||||||||
1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,303,082.72 | 25,142,832,818.16 | 101,871,858,632.84 | 129,645,192,333.72 | ||||||
Add: changes in accounting policies | -3,017,532.39 | -27,157,791.57 | -30,175,323.96 | ||||||||
Corrections of prior period errors | |||||||||||
Others | |||||||||||
2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,303,082.72 | 25,139,815,285.77 | 101,844,700,841.27 | 129,615,017,009.76 | ||||||
3. Increase/(decrease) during the period | 7,380,308,114.20 | 11,671,391,914.79 | 19,051,700,028.99 | ||||||||
(1) Total comprehensive income | 73,803,081,142.00 | 73,803,081,142.00 | |||||||||
(2) Shareholders’ contributions and reduction | |||||||||||
(i) Shareholders’ contributions in ordinary share | |||||||||||
(ii)Other equity instruments contributions | |||||||||||
(iii) Amount of share-based payments recognized in equity | |||||||||||
(iv) Others | |||||||||||
(3). Profit distribution | 7,380,308,114.20 | -62,131,689,227.21 | -54,751,381,113.01 | ||||||||
(i) Transfer to surplus reserve | 7,380,308,114.20 | -7,380,308,114.20 | |||||||||
(ii) Distribution to shareholders | -54,751,381,113.01 | -54,751,381,113.01 | |||||||||
(iii) Others | |||||||||||
(4) Transfer within equity | |||||||||||
(i) Capital reserves converted to share capital | |||||||||||
(ii) Surplus reserves converted to share capital | |||||||||||
(iii) Loss made up by surplus reserves |
(iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||
(v) Other comprehensive income transferred to retained earnings | |||||||||||
(vi) Others | |||||||||||
(5). Special reserve | |||||||||||
(i). Additions | |||||||||||
(ii). Utilisation | |||||||||||
(6) Others | |||||||||||
4. Closing balance | 1,256,197,800.00 | 1,374,303,082.72 | 32,520,123,399.97 | 113,516,092,756.06 | 148,666,717,038.75 |
Company Principal: Ding XiongjunAccounting Principal: Jiang YanHead of the Accounting Department: Cai Congying
III. Company profile
1. Overview
√Applicable □N/A
Kweichow Moutai Co., Ltd. is established after being approved by Guizhou Provincial People’sGovernment in its document of (1999) No. 291, Reply on Approving the Establishment of KweichowMoutai Co., Ltd. As an incorporated company, its main promoter is China Kweichow Moutai Distillery(Group) Co., Ltd., with Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.,Guizhou Textile Collective Industry Association, Research Institute of Tsinghua University in Shenzhen,China National Research Institute of Food and Fermentation Industries, Beijing Sugar Tobacco & LiquorGroup Co., Ltd., Jiangsu CANDY & LIQUOR & TOBACCO Parent Co., Shanghai Jieqiang TobaccoSugar & Liquor (Group) Co., Ltd. as co-founders.
The company was established on November 20,1999. Its registered capital at its establishment was RMB185 million. After being approved by CSRC with the document of [2001] No.41 and Ministry of Financewith the document of [2001] No. 56, the corporation publicly offered 71,500,000 A shares (including6,500,000 state-owned shares) at Shanghai Stock Exchange on July 31, 2001, marking a total capital ofits shares at 250,000,000 shares. On August 20, 2001, the corporation completed registration foralternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited andapproved by the 2001 Annual General Meeting, the corporation set the total share capital at the end of2001- 250,000,000 shares as the baseline, and distributed dividends (RMB 6 yuan every 10 shares, taxinclusive) to all shareholders, and converted capital reserves into increased share capital at a 10:1 ratio,totally increasing 25,000,000 shares. After this profit distribution, the total capital share increased from250,000,000 shares to 275,000,000 shares. On February 13, 2003, the corporation completed registrationfor alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution audited and approved by the 2002 Annual General Meeting,the corporation set the total share capital at the end of 2002- 275,000,000 shares as the baseline, anddistributed dividends (RMB 2 yuan every 10 shares, tax inclusive) to all shareholders. With the samebaseline, the corporation distributed bonus shares (1 bonus share every 10 share) to all shareholders. Afterthis profit distribution, the total capital share increased from 275,000,000 shares to 302,500,000 shares.On June 10, 2004, the corporation completed registration for alternation of registered capital fromAdministration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited andapproved by the 2003 Annual General Meeting, the corporation set the total share capital at the end of2003- 302,500,000 shares as the baseline, and distributed dividends (RMB 3 yuan every 10 shares, taxinclusive) to all shareholders, and converted capital reserves into increased share capital at a 10:3 ratio.After this profit distribution, the total capital share increased from 302,500,000 shares to 393,250,000shares. On June 24, 2005, the corporation completed registration for alternation of registered capital fromAdministration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited andapproved by the 2004 Annual General Meeting, the corporation set the total share capital at the end of2004- 393,250,000 shares as the baseline, and distributed dividends (RMB 5 yuan every 10 shares, taxinclusive) to all shareholders, and converted capital reserves into increased share capital at a 10:2 ratio.After this profit distribution, the total capital share increased from 393,250,000 shares to 471,900,000shares. On January 11, 2006, the corporation completed registration for alternation of registered capitalfrom Administration for Industry& Commerce of Guizhou Province.
According to the Reform Plan of Equity Division of Kweichow Moutai Co., Ltd. (Revised Version)audited and approved by the second provisional General Meeting and the Meeting of relevant shareholders,the corporation set the total share capital at the end of 2005- 471,900,000 shares as the baseline, andconverted every 10 capital reserves into 10 increased share capital. After this profit distribution, the totalcapital share increased from 471,900,000 shares to 943,800,000 shares. On November 17,2006, the
corporation completed registration for alternation of registered capital from Administration for Industry&Commerce of Guizhou Province.
According to the 2010 annual plan for profit distribution audited and approved by the 2010 Annual GeneralMeeting, the corporation set the total share capital at the end of 2010- 943,800,000 shares as the baseline,and distributed dividends (RMB 23 yuan every 10 shares, tax inclusive) and bonus share (1 bonus sharefor every 10 shares) to all shareholders. After this profit distribution, the total capital share increased from943,800,000 shares to 1,038,180,000 shares. On October 27, 2011, the corporation completed registrationfor alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the 2013 annual plan for profit distribution audited and approved by the 2013 Annual GeneralMeeting, the corporation set the total share capital at the end of 2013- 1,038,180,000 shares as the baseline,and distributed dividends (RMB 43.74 yuan every 10 shares, tax inclusive) and bonus share (1 share every10 shares) to all shareholders. After this profit distribution, the total capital share increased from1,038,180,000 shares to 1,141,998,000 shares. On August 5, 2014, the corporation completed registrationfor alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the 2014 annual plan for profit distribution audited and approved by the 2014 Annual GeneralMeeting, the corporation set the total share capital at the end of 2014- 1,141,998,000 shares as the baseline,and distributed dividends (RMB 43.74 yuan every 10 shares, tax inclusive) and bonus share (1 share every10 shares) to all shareholders. After this profit distribution, the total capital share increased from 1,141,998,000 shares to 1,256,197,800 shares. On October 29,2015, the corporation completed registration foralternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
Business scope of the Company: production and marketing of Moutai liquor and liquors of series,production and marking of beverage, food and package materials, the development of anti-counterfeittechnology and the research and development of IT-related products, the service of management of hotel,housing, catering, entertainment, bath and parking lot, vehicle transporting (dangerous chemicals notincluded) and maintenance, and the second category of value-added telecommunications services.
IV. Basis for the preparation of the financial statements
1. Basis of preparation of financial statements
The company has prepared its financial statements on a going concern basis.
2. Going concern
√Applicable □N/A
Since the date of this report, there are no events resulting in significant uncertainties over going concernof the operation of this company for at least 12 months.
V. Significant accounting policies and accounting estimatesSpecific accounting policies and accounting estimates:
√Applicable □N/A
1. Statement on compliance with Accounting Standards for Business EnterprisesThe financial statements have been prepared in accordance with the requirements of accounting standardsfor business enterprises, which truly and completely reflect the Company’s financial status, operatingresults, changes in shareholders’ equity, cash flow and other relevant information.
2. Accounting period
The accounting year of the Company is from 1 January to 31 December.
3. Operating cycle
√Applicable □N/A
The Company adopts 12 months as an operating cycle.
4. Functional currency
The Company adopts RMB as its functional currency.
5. Determination method and selection basis of materiality criteria
√Applicable □N/A
Item | Materiality criteria |
Significant bad debt provision assessed individually of accounts receivable | The amount of bad debt provision assessed individually accounts for over 10% of the total amount of bad debt provision of accounts receivable and exceeds RMB 50 million. |
Significant recovery or reversal of bad debt provision of accounts receivable | The amount of individual recovery or reversal accounts for over 10% of the total amount of accounts receivable and exceeds RMB 50 million. |
Significant write-off of accounts receivable | The amount of individual write-off accounts for over 10% of the total amount of bad debt provision of accounts receivable and exceeds RMB 50 million. |
Significant construction in progress | The budget of individual construction in progress investment exceeds RMB 1 billion. |
Significant capitalization of research and development expenditures | The budget amount of individual research and development project which is capitalized accounts for over 10% of the total budget of current research and development projects and the capitalized amount incurred in the current period exceeds RMB 50 million. |
important projects of construction in progress | investment budget for a single construction in progress exceeding RMB 1 billion |
Significant accounts payable and other payables | The amount of individual accounts payable or other payables with the aging over 1 year accounts for over 10% of the total amount of accounts payable or other payables and exceeds RMB 100 million. |
Significant non-wholly owned subsidiaries | The subsidiaries with non-controlling shareholders holding 5% and more than 5% of shares and the amount of total assets, net assets, operating revenue and net profit accounts for over 10% of the corresponding items in the consolidated financial statements. |
6. Accounting treatments of “Business combination involving entities under common control” and
“Business combination involving entities not under common control”
√Applicable □N/A
(1) Business combination involving entities under common control
For business combination involving entities under common control, assets and liabilities obtained by thecombining party through business combination shall be measured at the book value of the combinedcompany at the combination date. The capital reserve (stock premium or capital premium) is adjustedaccording to the difference between the book value of net asset acquired through combination and thebook value of consideration paid for the combination (or total par value of shares issued). If the capitalreserve (stock premium or capital premium) is insufficient to offset, the retained earnings shall be adjusted.
(2) Business combination not under common control
For business combination involving entities not under common control, the combination cost is calculatedat fair value of the assets, liabilities incurred or assumed and the equity securities issued by the combiningparty on combination date in the purpose of gaining the combined party’s control. For business
combination involving entities not under common control that are achieved step by step in multipleexchanges and transactions, different approaches in accounting treatment are adopted for individualfinancial statements and combination financial statements as follows.A. For individual financial statements, the initial investment cost of the investment is calculated as thesum of the book value of the combined party’s equity investment held by the combining party before thecombination date and the increased investment cost on the combination date. If the combined party’sequity held by the combining party entails other comprehensive profits, then the profits (e.g. the part ofthe difference of fair value of saleable financial assets that is calculated in capital reserves, the same forthe follows) shall be calculated as the investment profits of the current period.B. For combination financial statements, the combined party’s equity held by the combining party beforethe combination date shall be recalculated in fair value of the equity on combination date. The margin ofits fair value and book value shall be calculated into the investment profits of the current period. If thecombined party’s equity held by the combining party entails other comprehensive profits, then the profitsshall be calculated as the investment profits of the current period of the combination date. Fees,commissions, and other transaction expenses and other relevant administration expense paid forcombination shall be calculated into current profits or losses as they occur. Transaction fees of equitysecurities and debt securities paid by the combining party for combination consideration shall be includedin the initial measurement amount of equity or debt securities. The Company shall recognize the differenceof the combination costs in excess of the fair value of the net identifiable asset acquired from the acquireethrough combination as goodwill. After the review, if the combination costs are still in short of the fairvalue of the net identifiable asset acquired from the acquiree through combination, include the differencein the current profits or losses.
7. Judgment criteria for control and basis of consolidated financial statements
√Applicable □N/A
(1) Judgment criteria for control
The consolidation scope of the consolidated financial statements is determined on the basis of control.The control over an investee will be identified when an investor: has the power over the investee, isexposed to variable returns from its involvement with the investee and has the ability to to affect thosereturns through its power over the investee.
(2) Basis of consolidated financial statements
The consolidated financial statements of the Company are prepared in accordance with the AccountingStandards for Business Enterprises No.33 --Consolidated Financial Statements and relevant regulations.All major internal transactions and current accounts within the scope of the consolidate have been offsetat the time of consolidation. The part of shareholders' equity of a subsidiary that is not owned by the parentcompany shall be presented separately as non-controlling equity under shareholders’ equity in theconsolidated financial statements. When preparing the consolidated financial statements, whereaccounting policies and accounting periods adopted by subsidiaries are inconsistent with those of theCompany, necessary adjustments should be made to the financial statements of subsidiaries according tothe accounting policy and accounting period adopted by the Company. For the subsidiaries acquiredthrough business combination under common control, their operating results and cash flows shall beincluded in the consolidated financial statements from the beginning of the current consolidation period.When preparing the comparative consolidated financial statements, related items in the financialstatements of the previous year are adjusted accordingly, and it is deemed that, after the combination, thereporting entity has been in existence since the point when the ultimate controlling party began to control.For the subsidiaries acquired through business combination not under common control, their operatingresults and cash flows shall be included in the consolidated financial statements as from the date ofobtaining the control right by the Company.
8. Cash and cash equivalents
Cash equivalents include cash on hand, bank balances, other monetary funds, provision at central bankretrievable at any time, deposits with other banks, placements with banks, buying securities and returnsale within the same industry and other investments featuring short investment period (generally duewithin three months since purchase), high mobility, easy convertibility to cash with known amount andlow risk of value change.
9. Foreign operations and foreign currency translation
√Applicable □N/A
(1) Foreign currency operations
The amount in the foreign currency shall be translated into RMB currency according to the middle rate ofexchange rate in foreign currency market on the day of transaction. At the end of the period, the balanceof monetary foreign currency account shall be translated into RMB currency according to the middle rateof exchange rate at the end of the period. The difference between the translated RMB balance and theoriginal book balance shall be calculated as exchange gains or lost, and recorded into items like ‘financeexpense’ and ‘construction in progress’. For non-monetary foreign currency projects calculated withhistorical cost, the spot exchange rate on transaction day is employed, and the amount of reportingcurrency stay unchanged.
(2) Foreign currency translation
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance sheetdate. Shareholders’ equity items, except for the item of “retained earnings”, are translated at the spotexchange rates on the dates when the transactions occur. Revenue and expense items in the incomestatement are translated at the spot exchange rates on the dates when the transactions occur or at theexchange rate determined in a systematical and reasonable method and similar to the spot exchange rateon the day when the transactions occur. Differences arising from the above translations of foreign currencyfinancial statements are separately listed under other comprehensive income in the consolidated balancesheet. Cash flow projects operated overseas shall be translated at approximate exchange rate of spot rateon the date of cash flow. The amount of cash affected by fluctuations of exchange rate shall be separatelylisted in the table of cash flow.
10. Financial Instruments
√Applicable □N/A
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract, the related financial asset orfinancial liability should be recognized. Transaction of financial assets by regular means shall berecognized and derecognized according to accounting on transaction date. Regular means refers togaining or giving financial assets within the time period designated by law or regulations according tocontract items. Transaction date refers to the date that the Company promises to purchase or sellfinancial assets.
Derecognition of financial assets (or part of financial assets) shall be conducted- written off from theaccount and asset liability list, if it meets following conditions: A. expiration of the right to acquire cashflow of financial assets; B. Transfer of the right to obtain cash flow of financial assets, and (a)substantively transferring almost all risks and rewards of the possession of financial assets, or (b) thoughsubstantively neither transferring nor retaining almost all risks and rewards of the possession of financialassets, relinquishing the control over the financial assets.
(2) Classification and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics offinancial assets, the Company classifies financial assets into: financial assets measured at amortized cost;financial assets measured at fair value with their changes included into other comprehensive income; andfinancial assets measured at fair value with their changes included into current profits/losses. Thefollowing measurement of financial assets depends on its classification.The financial assets of the Company are classified according to the business model of the company'smanagement of financial assets and the cash flow characteristics of financial assets.
A. Financial assets measured at amortized costThe business model in which the Company manages financial assets measured at amortized cost aims toreceive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financialassets are consistent with basic borrowing and lending arrangements, which means that cash flowgenerated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial interests,performs subsequent measurement of them at amortized cost, and includes the gains or losses fromderecognition, changes or impairment of them into current profits/losses.
B. Investment in debt instruments measured at fair value through other comprehensive incomeThe financial assets that meet the following conditions are of this category: The business model in whichthe Company manages such financial assets both aims to receive contract cash flow and for the purposeof sale; furthermore, the characteristics of the contract cash flow of such financial assets are consistentwith basic borrowing and lending arrangements. The Company measure such financial assets at fairvalue and include their changes into other comprehensive income, but record impairment losses or gains,exchange gains or losses and interest income calculated in the effective interest method into currentprofits/losses.
C. Investment in equity instruments measured at fair value through other comprehensive incomeThe Company irrevocably chooses to designate part of non-transactional equity instrument investmentsas financial assets calculated with fair value whose changes are included in other comprehensiveincome, and only relevant dividend income is calculated into current profits or losses. Changes in fairvalue are recognized as other comprehensive income. When the financial asset is derecognized,cumulative gains or losses should be transferred into retained earnings.
D. Financial assets measured at fair value through profit or lossFor financial assets other than the above financial assets measured at amortized cost and financial assetsmeasured at fair value with their changes included into other comprehensive income, the Companyclassifies them as financial assets measured at fair value with their changes included into currentprofits/losses. In addition, at the initial recognition, the Company specifies partial financial assets asfinancial assets measured at fair value with their changes included into current profits/losses, in order toeliminate or substantially reduce accounting mismatch. For such financial assets, the Company performssubsequent measurement using fair value and records changes in the fair value into currentprofits/losses. When and only when the Company changes its business mode for management offinancial assets, will be influenced relevant financial assets be reclassified. For financial assets measuredat fair value with their changes included into current profits/losses, relevant transaction fees arecalculated into current profits or losses; while for other financial assets, relevant transaction fees areincluded into the initial recognition amount.
(3) Classification and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at amortizedcost and financial liabilities measured at fair value with their changes included into current profits orlosses.
Financial liabilities meeting the following conditions are specified as financial liabilities measured at fairvalue with their changes included into current profits or losses at initial measurement: A. Thespecification can eliminate or notably reduce account mismatch; B. Based on risk management orinvestment strategy from official documents, management and business evaluation are conducted onfinancial liability combination or financial asset and financial liability combination on the basis of fairvalue, which are reported to key management personnel inside the company; C. The financial liabilitiesinclude embedded derivatives that need to be separated.
The Company recognize the classification of financial liabilities at initial recognition. For financialliabilities measured at fair value with their changes included into current profits or losses, relevanttransaction fees are calculated into current profits or losses; while for other financial liabilities, relevanttransaction fees are included into the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
A. Financial liabilities measured at amortized costFor financial liabilities of this category, effective interest rate is adopted, and subsequent measurement isperformed at amortized cost.
B. Financial liabilities measured at fair value through profit or lossFinancial liabilities measured at fair value with their changes included into current profits/losses includetrading financial liabilities (including derivatives classified as financial liabilities) and the financialliabilities specified to be measured at fair value with their changes included into current profits/losses atthe initial recognition.
(4) Offset of financial instruments
Financial assets and financial liabilities meeting the following conditions simultaneously shall be listedin balance sheet in their net amounts after manual offset: The Company has the legal right to offsetrecognized financial assets and financial liabilities and may execute the legal right currently andsimultaneously; The Company plans to settle or simultaneously encash the financial assets in netamounts and pay off the financial liabilities.
(5) Impairment of financial assets
For financial assets measured at amortized cost and debt instrument investment measured at fair valuewith its changes included into other comprehensive income, the Company recognizes the provision forloss based on the expected credit loss.
When assessing expected credit loss, the Company considers reasonable and well-founded informationon past matters, present conditions and forecast of future economic conditions, sets the risk of default astheweight, and calculates the weighted amount of the difference of present value between the cash flowaccording to the contract and the cash flow expected to be gained in practice.
On each balance sheet date, the Company calculates expected credit loss for financial instruments atdifferent stages. If the credit risk of financial instrument hasn’t substantially increased since the initialrecognition, then it is in the first stage, and the Company will measure the loss provision at the amountequivalent to the expected credit loss for the next 12 months. If the credit risk has substantially increasedsince the initial recognition without credit impairment, then the financial instrument is in the secondstage, and the Company will measure the loss provision at the amount equivalent to the expected creditloss for the entire duration. If credit impairment has occurred since the initial recognition, then thefinancial instrument is in the third stage, and the Company will measure the loss provision by theamount equivalent to the expected credit loss for the entire duration.
For financial instruments featuring relatively low credit risk on asset balance date, the Companyassumes no substantial increase of credit risk since the initial recognition, and will measure the lossprovision at the amount equivalent to the expected credit loss for the next 12 months.
For financial instruments that are in the first stage or second stage, or featuring relatively low credit risk,the Company will calculate the interest income according to the book balance and the effective interestrate without deducting provision. For financial instruments that are in the third stage, the Company willcalculate the interest income according to the amortization cost and the effective interest rate, deductingprovision from the book balance.
For notes receivable and accounts receivable formed in daily operations like sale of product andprovision of labor, regardless of substantial financing component, the Company will measure the lossprovision by the amount equivalent to the expected credit loss for the entire duration.
When the information about the expected credit loss of a single financial asset cannot be evaluated at areasonable cost, the Company shall divide the accounts receivables portfolio according to credit riskcharacteristics and measure the expected credit loss based on portfolios. The foundation to determineportfolio and provision means are as follow:
Bank acceptance bill portfolio Bank acceptance bills
Accounts receivable portfolio Accounts receivable of related parties within the scope of
consolidation
Portfolio of other receivables Reserve funds, deposits and security deposit and other receivables
with low credit risk
Portfolio of other receivables Other receivables of related parties within the scope of
consolidation
Other portfolios Other payments except the above portfolios
For accounts retrievable divided as portfolio and accounts retrievable formed in daily operations like saleof product and provision of labor, the Company calculates the expected credit loss through the comparativetable of accounts retrievable and accounts retrievable age and the expected credit loss rate over the entireduration based on the current situation and prediction of future economic situation consulting historicalcredit loss experience. For other notes retrievable and accounts retrievable classified as portfolio, thecompany will calculate the expected credit loss through the exposure at default and expected credit lossrate for the following 12 months or over the entire duration based on the current situation and predictionof future economic situation consulting historical credit loss experience.
The Company calculates provision withdrawn or reversed into profits/ losses of the current period. Forliability instruments in fair value whose changes are included in other comprehensive income, theCompany calculates impairment losses or income into profits/ losses of the current period, while adjustingother comprehensive income.
(6) Transfer of financial assets
If almost all the risks and rewards in respect of the ownership of the financial asset are transferred, thefinancial asset shall be derecognized; if they are retained, the financial asset shall not be derecognized.
If almost all the risks and rewards in respect of the ownership of the financial asset are neither transferrednor retained, the Company will conduct further evaluation: If the enterprise does not retain control overthe asset, then its financial assets shall be derecognized, and the rights and obligations produced or retainedduring transfer shall be separately recognized as assets or liabilities. If the enterprise retains control overthe asset, then relevant financial assets shall be recognized according to the degree to which it continuesto be involved in the transferred financial assets, and relevant liabilities shall be recognized.
If the enterprise continues to involve itself by obligation of guarantee for transferred financial assets, thenthe lower one of the book value and guarantee amount of financial assets on transfer date shall be selectedand recognized as the transferred financial assets. The relevant liabilities are determined as the sum ofguarantee amount and fair value of guarantee contract (usually the consideration received from obligationof guarantee). The guarantee amount refers to the highest amount repayable among the considerations anenterprise receives.
11. Inventories
√Applicable □N/A
Classification of inventory, measurement method of dispatched inventories, inventory system, andamortization method of low-cost consumables and packing materials
√Applicable □N/A
(1) Classification of inventories
Inventories are classified as: raw materials, semi-finished goods, goods in progress, finished goods, andrevolving materials.
(2) Measurement method of dispatched inventories
The planned cost is used for daily accounting of raw materials, and the difference of material cost shouldbe carried forward on a monthly basis to adjust the dispatch cost into the actual cost. The semi-finishedgoods and finished goodsshall be accounted according to the actual cost, and the moving weighted averagemethod shall be used in accounting for costs of sales.
(3) Inventory system
Perpetual inventory system
(4) Amortization method of low-cost consumables and packing materials
One-off amortization method
Determination basis and method of provision for inventories
√Applicable □N/A
At the end of the period, the inventories shall be measured at the lower of cost and net realizable value:
the provision for inventories shall be made at the excess of cost of the individual inventory over its netrealizable value.
The category and determination basis of the provision for inventories assessed by portfolio, andthe determination basis of net realizable value of different categories
□Applicable √N/A
The calculation method and determination basis of net realizable value of inventories categorizedby aging
□Applicable √N/A
12. Long-term equity investments
√Applicable □N/A
(1) Judgment criteria for control and significant influence:
The long-term equity investments of the Company are mainly investments in subsidiaries. Subsidiariesrefer to invested parties upon which the Company can exert control. Control refers to the fact that theinvesting party has power over the invested party, enjoys variable returns and can influence the returnamount by exercising power over the invested party. The term ‘significant influence’ refers to the powerto participate in decision-making on the financial and operating policies of the investee, but with no controlor joint control over the formulation of these policies.
(2) Recognition of investment cost:
A. Long-term equity investment acquired through business combination:
For business combination under common control, for the long-term equity investments obtained by cashpaid, non-monetary assets paid or assumed liabilities as consideration by the acquirer, on the acquisitiondate, the initial investment cost of long-term equity investment shall be taken as the share of the owner’sequity of the investee in the book value of the final control party’s consolidated financial statements.According to the margin amount between initial investment cost and cash payment, non-monetary assetpaid or assumed liabilities, capital reserve should be written down. If the capital reserve is not sufficientto be written down, then the retained earnings shall be written down. For investments obtained by equitysecurities issued by the acquirer, on the acquisition date, the initial investment cost of long-term equityinvestment shall be taken as the share of the owner’s equity of the investee in the book value of the finalcontrol party’s consolidated financial statements. Setting total book value of issued shares as share capital,according to the difference between the initial investment cost and total book value of issued shares, capitalreserve shall be written down; if the capital reserve is not sufficient to be written down, then the retainedearnings shall be written down.
For business combination not under common control, on the acquisition date, the combination costaccording to the Accounting Standards for Business Enterprises No.20 - Business Combination should becalculated as the initial investment cost of long-term equity investment.
B. For long-term equity investments obtained by means other than business combination:
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value asthe initial investment costs. For the long-term equity investments acquired by the issue of equity securities,the initial investment cost shall be the fair value of the equity securities issued.
(3) Subsequent measurements and recognition of profit or loss
The investments of subsidiaries are measured with the cost method, and shall be adjusted according toequity law according to initial investment cost when making the combination financial statements. Costsshall be added or retrieved in adjustment of long-term equity investments. The cash dividends or profitsdeclared by the investee shall be recognized as the investment income of the current period.
For long-term equity investments measured under the equity method, if the initial investment costs arehigher than the investor’s attributable share of the fair value of the investee’s identifiable net assets,initial investment cost shall be calculated as long-term equity investment cost; if the initial investmentcosts are lower than the investor’s attributable share of the fair value of the investee’s identifiable netassets, the margin shall be calculated into profits/ losses of the current period, and long-term equityinvestment cost shall be increased. The Company shall, according to the shares of net profits and othercomprehensive income realized by the investee that shall be enjoyed or borne by the Company,recognize the profit and loss on the investments of the current period. When recognizing the net losses ofthe invested party, the losses should be limited to zero at least according to book value and other long-term equities of long-term equity investment. Nonetheless, if the Company bears the obligation foradditional losses and meets conditions to recognize expected liabilities, then it shall continue torecognize investment losses and calculate it into liabilities. When recognizing the net profits and lossesand other comprehensive income of the investee that the Company shall enjoy or bear, the Companyshall calculate the part is enjoys or bears according to share-holding ratio on the basis that theCompany’s share-holding ratio remains the same, and include the part directly into share-holders’equities, and make adjustments to book value of long-term equity investments. For the part of theinterest or dividend from the invested party that is favorable for declaration and distribution, the bookvalue of long-term equity investments shall be reduced accordingly. For unachieved internal transactionprofits and losses between the Company and the invested party, the part of the Company shall becalculated according to the ratio that should be shared or born by the company and be offset, on the basisof which the recognition of investment profits/ losses shall be conducted. The part of asset impairmentincurred in internal transaction loss shall not be offset.
13. Investment properties
(1) Investment properties measured at cost:
Depreciation and amortization methodsThe company shall deduct expected net residual value (residual value rate: 5%) and cumulativeimpairment provision from the cost of investment property, and conduct depreciation or amortizationusing straight-line method within the service life (20 years).
14. Fixed assets
(1) Recognition of fixed assets
√Applicable □N/A
Fixed assets refer to tangible assets with relatively high unit value, which are held for the purpose ofproducing commodities, providing services, renting or business management with useful life exceedingone accounting year.
(2) Depreciation method
√Applicable □N/A
Category | Depreciation method | Estimated useful life (year) | Residual value rate | Annual depreciation rate |
Buildings | Straight-line method | 20 | 5% | 4.75% |
Machinery equipment | Straight-line method | 10 | 5% | 9.5% |
Electronic equipment | Straight-line method | 5 | 5% | 19% |
Vehicles | Straight-line method | 5 | 5% | 19% |
A. For the newly purchased instruments and equipment specially used for research and developmentafter January 1, 2014, the amount less than RMB 1 million will be included in the current costs andexpenses in a lump.
B. The depreciation year of the newly purchased instruments and equipment with the amount exceedingRMB 1 million, specially used for research and development after January 1, 2014 is as follows:
Asset category | Estimated useful life |
Machinery equipment | 6 years |
Electronic equipment | 2 years |
(3) Methods of test for impairment of fixed assets and provision for impairmentAt the end of the period, check on fixed assets shall be implemented item by item. If the recoverableamount is lower than book value because of outdated technology, impairment or long-term idlecondition, the Company shall calculate the difference between recoverable amount and book value as theprovision for impairment for fixed assets. Provision for impairment for fixed assets shall be conducted interms of individual asset.
15.Construction in progress
√Applicable □N/A
Accounting method for construction in progress: each construction in progress is initially measured at theactual cost.
(1) The construction in progress shall be transferred to fixed assets in the following conditions:
A. The acquired fixed assets are ready for use;B. The physical construction of the construction in progress has been completed or substantially completed;C. The acquired fixed assets conform to the design requirements or contract requirements, they can beused normally, and it needs little or no expenditure on the acquired construction in progress.
(2) The new construction, reconstruction and expansion projects of the company’s fixed assets areincluded in the construction in progress according to the actual expenditure incurred. Borrowing interestand foreign exchange gains and losses incurred in the construction of borrowed loans can be capitalizedand included in the cost of construction in progress before the fixed assets reach the intended usable stateif the fixed assets meet the capitalization conditions.
(3) On the balance sheet date, the construction in progress shall be checked by items. If there is evidencethat the construction in progress is impaired, the provision for impairment shall be made based on thedifference between the recoverable amount and the carrying amount.
The main factors in making provision for impairment of construction in progress are as follows:
A. Suspended construction for a long time and is not expected to restart construction in the next threeyears;B. The constructed projects are backward in terms of technology and performance, and it is uncertain forthe economic benefits brought to the enterprise;C. Other circumstances sufficient to prove that the construction in progress has been impaired.
16. Borrowing costs
√Applicable □N/A
The principle to confirm the capitalization of borrowing costs is as follows: the borrowing costs such asinterest on borrowings, amortization of discounts or premiums, auxiliary costs, and exchange differencesdue to foreign currencies incurred by the Company due to borrowings, which can be directly attributedto the acquisition & construction or production of assets that meet the capitalization conditions, shall becapitalized and included in the cost of the asset; other borrowing costs shall be recognized as expenses inthe period in which they are incurred and included in profit or loss.
Determination method of capitalization period:
(1) Commencement of capitalization: borrowing costs can only begin to be capitalized if the followingthree conditions are all met simultaneously:
A. The asset expenditures have already incurred;B. Borrowing costs have already been incurred;C. The acquisition and construction or production activities which are necessary to prepare the assets fortheir intended use or sale have been in progress.
(2) Suspension of capitalization: If the acquisition and construction of fixed assets is suspendedabnormally, and the suspension lasts for more than 3 months, the capitalization of borrowing costs willbe suspended, and the borrowing costs incurred during the interruption period will be recognized ascurrent expenses until the assets are acquisition and construction activities resumed.
(3) Cease of capitalization: When the acquired and constructed fixed assets reach the intended usablestate, stop the capitalization of borrowing costs.
The calculation method of capitalized amounts of borrowing costs:
A. If a special loan is borrowed for the acquisition, construction or production of assets that meet thecapitalization conditions, the interest expense actually incurred in the current period of the special loanshall be determined after deduction of the interest income obtained by depositing the unused loan fundsin the bank or by temporary investment;
B. If general borrowings are occupied for the purpose of acquisition, construction or production of assetsthat meet the capitalization conditions, the Company shall calculate and determine amount of interest ofgeneral borrowings to be capitalized based on weighted average number of asset expenditures overwhich the accumulated asset expenditure exceeds the special borrowings multiplied by the capitalizationrate of the occupied general borrowings. The capitalization rate is calculated based on the weightedaverage rate of borrowings, and the auxiliary expenses incurred by general borrowings shall not becapitalized.
17. Intangible assets
(1). Useful life and determination basis, estimate, amortization method orreview procedures
√Applicable □N/A
A. Valuation of intangible assets: Intangible assets are initially measured at the cost when they are actuallyacquired. For the intangible assets developed by the Company, the expenditures in the research stage shallbe included in the current profit and loss when incurred; the expenditures in the development stage shallbe recognized as intangible assets (patented technology and non-patented technology) if the followingconditions are all met simultaneously:
a. It is feasible technically to finish intangible assets for use or sale.b. It is intended to finish and use or sell the intangible asset.c. The method that the intangible assets generate economic benefits, including the existence of a marketfor products produced by the intangible assets or for the intangible assets themselves;d. There is sufficient support in technology, financial resource and other resources to complete thedevelopment of the intangible asset, and it is able to use or sell the intangible asset;e. The expenditures attributable to the intangible asset during its development phase can be measuredreliably.B. Amortization of intangible assets: The intangible assets are amortized in the straight-line method overthe beneficial years from the month of acquisition, and intangible assets with indefinite useful lives arenot amortized.C. On the balance sheet date, each intangible asset should be checked, and if there is any sign ofimpairment, an impairment provision should be made based on the difference between the recoverableamount and the carrying amount.
(2). Collection scope of research and development expenses and relevant accounting treatment
√Applicable □N/A
A. The scope of R&D expenses is mainly determined based on the Company's research and developmentprojects, including labor costs for R&D personnel, direct investment costs, depreciation and long-term
deferred expenses, amortization of intangible assets, design costs, equipment debugging and testing costs,commissioned external research and development costs, and other expenses.
B. The Company's R&D expenses are distinguished between expenses in the research phase and expensesin the development phase. Research refers to the creative and planned investigation conducted to acquireand understand new scientific or technological knowledge. Development phase: Development refers tothe stage when the research achievements and other knowledge are applied to a plan or design, prior to thecommercial production or use, so as to produce any new or substantially improved material, device orproduct.
C. The expenses during the research phase are recognized in the current period's profit and loss whenincurred; Expenses during the development phase that meet the following conditions are recognized asintangible assets, or recognized in the current period's profit and loss:
a. It is technically feasible to complete the intangible asset so that it can be used or sold;b. There is intention to complete the intangible asset for use or sales;c. The usefulness of methods for intangible assets to generate economic benefits include that there is apotential market for the products manufactured by applying the intangible assets or that there is a potentialmarket for the intangible assets themselves. For the intangible assets is to be used internally, the usefulnessitself of should be proved;d. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets,with the support of sufficient technologies, financial resources and other resources.e. The expenditure attributable to the intangible asset during its development phase can be measuredreliably.
18. Long-term deferred expenses
√Applicable □N/A
Long-term deferred and prepaid expenses are expenses that have occurred but should be borne by thecurrent and subsequent periods for a period of more than one year.
19. Employee compensation
The Company’s employee benefits refer to various forms of remuneration and compensation given bythe Company to the employees for obtaining services provided by employees or for termination of laborrelations, including short-term benefits, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the Company to employees’ spouses, children,dependents, survivors of deceased employees and other beneficiaries also belong to employee benefits.
(1) Accounting treatment of short-term compensation
√Applicable □N/A
Short-term compensation refers to benefits that the Company expects to pay in full within 12 months afterthe end of the annual reporting period in which the employee provides relevant services, excluding thecompensation for the employment termination. The Company’s short-term remuneration specificallyincludes: employee wages, bonuses, allowances and subsidies, employee welfare expenses, socialinsurance premiums such as medical insurance premiums, work-related injury insurance premiums andmaternity insurance premiums, housing provident fund, labor union funds and employee education funds,short-term paid absences, short-term profit-sharing plans, non-monetary benefits, and other short-termbenefits.
During the accounting period in which the employees provide services, the Company recognizes the actualshort-term benefits as liabilities, and includes the current profits and losses or relevant asset costsaccording to the beneficiaries of the services provided by the employees. Non-monetary short-termbenefits shall be measured at fair value.
(2) Accounting treatment of post employment benefits
√Applicable □N/A
Post-employment benefits refer to various forms of benefits provided by the Company in order to obtainthe services provided by the employees after the employees retire or terminate the labor relationship withthe enterprise.
Defined contribution plan: The contributions to be paid to a separate entity in exchange for the servicesprovided by employees during the accounting period on the balance sheet date are recognized as employeecompensation liabilities, and are included in the current profit and loss or related asset costs.
(3) Accounting treatment of dismissal benefits
√Applicable □N/A
As to providing employees dismissal benefits, employee compensation incurred from dismissal benefitsshould be recognized as liabilities and included in the current profit or loss on the date when the Companyis unable to unilaterally withdraw the dismissal benefits provided in the plan on the cancellation of laborrelationship or the layoff proposal or when the Company recognizes the cost or expenses related torestructuring concerning payment of dismissal benefits (whichever is earlier).
(4) Accounting treatment of other long-term employee benefits
□Applicable √N/A
20. Revenue
(1) Accounting policies for revenue recognition and measurement, disclosed by the business type
√Applicable □N/A
Revenue refers to the total inflow of economic benefits that are formed in the daily activities of theCompany and will lead to an increase in owners’ equity and have nothing to do with the capital investedby the owners.
The Company recognizes revenue when its performance obligations as stipulated in the contract arefulfilled, that is, when the customer obtained control of the related goods. Acquiring the control overrelevant goods means being able to dominate the use of such goody and obtain almost all the economicbenefits therefrom. After the Company delivers the products to the customers according to the contract,the revenue will be recognized according to the net amount after deducting the consideration payable tothe customers. Before signing a contract with a customer and receiving an order but not delivering theproduct to the customer, the Company will recognize the contract consideration received from thecustomer as a contract liability.
(2). Businesses with the same nature that adopt different operating approaches apply differentrecognition and measurement methods of revenue.
□Applicable √N/A
21. Government grants
√Applicable □N/A
Government grants refer to the monetary or non-monetary assets that the Company obtains from thegovernment for free, but does not include the capital invested by the government as the owner of theCompany. Government grants are divided into asset-related government grants and income-relatedgovernment grants. Government grants can only be confirmed if they meet the following conditions at thesame time:
A. The Company can meet the conditions attached to government grant;B. The Company can receive government grant.
(1) Judgment basis or accounting treatment method for government grants related to assetsThe government grants related to assets shall be used to offset the book value of relevant assets orrecognized as deferred income. If government grants relating to assets are recognized as deferred income,they shall be included in profit or loss by stages by a reasonable and systematic method within the useful
lives of relevant assets. Government grants measured at nominal amount are directly included in thecurrent profit or loss. If relevant assets are sold, transferred, scrapped or damaged before the end of theuseful life, the unallocated balance of relevant deferred income shall be transferred to the current profit orloss.
(2) Judgment basis or accounting treatment method for government grants related to incomeGovernment grants related to income should be dealt with in the following ways:
A. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should berecognized as deferred income and included into the current profit and loss or written off of the relatedcosts when the relevant expenses, losses are recognized;
B. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly includedinto the current profit and loss or written off of the related costs.
(3) Government grants related to the daily activities of enterprises shall be included in other income orused to offset related cost according to the essence of business. Government grants irrelevant to the routineactivities of the Company are included in the non-operating revenue and expenditure.
22. Deferred tax assets and Deferred tax liabilities
√Applicable □N/A
On the balance sheet date, the amount of deferred tax assets and Deferred tax liabilities shall be calculatedat the applicable tax rate according to the deductible temporary differences and taxable temporarydifferences of items of assets and liabilities.
23. Lease
√Applicable □N/A
As the lessee, judgment basis and accounting treatment adopted for the simplified treatment forshort-term and low-value asset leases
√Applicable □N/A
On the contract start date, the Company evaluates whether the contract is a lease or includes a lease. Ifone party in the contract transfers the right to control the use of one or more identified assets within acertain period in exchange for consideration, the contract is a lease or includes a lease. In order todetermine whether the contract transfers the right to control the use of the identified asset for a certainperiod, the Company evaluates whether the customer in the contract is entitled to receive substantiallyall the economic benefits arising from the use of the identified asset during the period of use, and has theright to dominate the use of the identified asset during the period of use. The general accountingtreatment is as follows:
On the commencement date of the lease term, the Company recognizes its right to use the leased assetduring the lease term as a right-of-use asset, including the initial measurement amount of the leaseliabilities; for the lease payments paid on or before the commencement date of the lease term, if there isa lease incentive, the following items should be deducted, including the relevant amount of the leaseincentive that has been enjoyed, the initial direct expenses incurred by the lessee, and the costs of thelessee for dismantling and removing the leased asset, restoring the site where the leased asset is located,or restoring the leased asset to the state agreed in the lease terms.
On the commencement date of the lease term, the Company recognizes the present value of unpaid leasepayments as lease liabilities, excluding short-term lease and low-value assets lease. When calculating thepresent value of lease payments, the Company takes the interest rate implicit in the lease as the discountrate; if the interest rate implicit in the lease cannot be determined, the incremental borrowing rate of thelessee is used as the discount rate.
The Company subsequently adopts the straight-line method to depreciate the right-of-use assets,calculates the interest expenses of the lease liabilities in each period of the lease term, and includes themin the current profit and loss, unless otherwise stipulated to be included in the cost of the relevant assets.
Variable lease payments that are not included in the measurement of lease liabilities are included in thecurrent profit and loss when they are actually incurred, unless otherwise stipulated to be included in thecost of the relevant asset.
The Company does not recognize right-of-use assets and lease liabilities for short-term lease and low-value asset lease. In each period of the lease term, it is included in the relevant asset cost or current profitand loss on a straight-line basis.
As the lessor, lease classification standard and accounting treatment
√Applicable □N/A
As a lessor, a financial lease refers to substantially transfer almost all the risks and rewards related to theownership of the leased asset on the lease commencement date, and all other leases are operating leases.
a. Rental income from operating leases is recognized as current profit and loss on a straight-line basisover each period of the lease term.
b. On the start date of the lease term, the Company recognizes the finance lease receivables for thefinance lease, and derecognizes the finance lease assets. During the initial measurement of the financelease receivables, the net investment in the lease is taken as the entry value of the finance leasereceivables. The net lease investment is the sum of the unguaranteed residual value and the present valueof the lease receipts not yet received at the commencement date of the lease term which is discounted atthe interest rate implicit in the lease.
24. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Content of and reason for changes in accounting policies | Items under great impact | Amount impacted (Consolidation) | Amount impacted (Parent company) |
The Ministry of Finance issued the Interpretation No.16 of Accounting Standards for Business Enterprises on November 30, 2022, in which the content that the accounting treatment of exempting the initial recognition does not apply to the deferred income tax relevant to the assets and liabilities arising from any individual transaction has been implemented as of January 1, 2023. | Deferred tax assets | 136,021,100.77 | 90,050,281.43 |
Deferred tax liabilities | 162,628,090.99 | 116,608,070.57 | |
Surplus reserves | -2,655,778.91 | -2,655,778.91 | |
Retained earnings | -23,975,377.63 | -23,902,010.23 | |
Non-controlling interests | 24,166.32 | - | |
Income tax expenses | 903,191.13 | -3,617,534.82 |
Other note:
The Company has implemented such provision as of January 1, 2023, and made the retroactive adjustmentto the amounts in the comparative statement and the cumulative amounts impacted by the taxabletemporary differences and deductible temporary differences arising from the lease liabilities and right-of-use assets on the first implementation date. As for any individual transaction before January 1, 2022, ifthe temporary difference still exists between relevant assets and liabilities on January 1, 2022, theCompany will recognize the deferred tax assets and deferred tax liabilities on January 1, 2022 and adjustthe difference to the retained earnings on January 1, 2022. The impact of such matter on the financialstatements on December 31, 2022 and for the year ended December 31, 2022 is shown in the table above.
(2) Changes in significant accounting estimates
□Applicable √N/A
(3) The impacts arising from adoption of new accounting standards or interpretation on the balancesheet as at 1 January 2023
□Applicable √N/A
25. Others
□Applicable √N/A
VI. Taxation
1. The principal kinds of taxes and related tax rates:
The principal kinds of taxes and related tax rates:
√Applicable □N/A
Tax | Tax basis | Tax rate |
VAT | Calculation of output tax and input tax on product sales revenue | 13% |
Consumption tax | Taxable price and sales volume of sales revenue of alcoholic products | 20%、RMB 0.5 /500ml |
City construction and maintenance tax | Turnover tax payable | 7% |
Enterprise income tax | Taxable income | 25% |
Education surcharges | Turnover tax payable | 3% |
Local education surcharges | Turnover tax payable | 2% |
Notes to disclosure of enterprises with different enterprise income tax rates:
□Applicable √N/A
2. Tax preference
□Applicable √N/A
3. Others
□Applicable √N/A
VII. Notes to the items of the consolidated financial statements
1. Cash and cash equivalents
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Cash on hand | 162,802.00 | 12,740.70 |
Bank deposits | 69,069,973,574.12 | 58,274,305,992.53 |
Other Cash and cash equivalents | ||
Deposits in finance companies | ||
Total | 69,070,136,376.12 | 58,274,318,733.23 |
Including: Total amount deposited overseas | 27,433,842.07 | 29,007,671.59 |
Cash and cash equivalents restricted for use
Item | Amount at the end of the period | Amount at the beginning of the period |
Amount in RMB | Amount in RMB | |
Legal deposit reserve in the central bank | 5,991,813,679.87 | 6,418,765,887.71 |
2. Loans to banks and other financial institutions
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Deposits with banks and other financial institutions | 103,060,963,177.98 | 116,176,621,670.01 |
Loans to banks and other financial institutions | 2,508,579,166.67 | |
Less: provision for impairment | 15,705,882.07 | 3,910,115.42 |
Book value | 105,553,836,462.58 | 116,172,711,554.59 |
Loans to banks and other financial institutions restricted for use
Item | Balance at the end of the period | Balance at the beginning of the period |
Amount in RMB | Amount in RMB | |
Interbank deposit with restrictions on withdrawal | 16,000,000,000.00 | 14,000,000,000.00 |
3. Held-for-trading financial assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | Designation reason and basis |
Financial assets measured at fair value through profit or loss | 400,712,059.93 | / | |
Including: | |||
investment in debt instrument | 400,712,059.93 | / | |
Financial assets designated to be measured at fair value through profit or loss | |||
Total | 400,712,059.93 | / |
4. Notes receivable
(1) Presentation of notes receivable by category
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Bank acceptance bills | 13,933,440.00 | 105,453,212.00 |
Total | 13,933,440.00 | 105,453,212.00 |
(2) Pledged notes receivable of the Company as at December 31, 2023
□Applicable √N/A
(3) Notes receivable of the Company as at December 31, 2023 that have been endorsed or discountedbut not matured on the balance sheet date
□Applicable √N/A
(4) Disclosure by category based on the method for provision for bad debts
□Applicable √N/A
(5) Provision for bad debts
□Applicable √N/A
(6) Notes receivable write-off in the current period
□Applicable √N/A
5. Accounts receivable
(1) Disclosure by aging
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Aging | Book balance as at the end of the period | Book balance at the beginning of the period |
Within 1 year | 60,373,410.41 | 20,937,144.00 |
Sub-total within 1 year | 60,373,410.41 | 20,937,144.00 |
1 - 2 years | ||
2 - 3 years | ||
Over 3 years | ||
3 - 4 years | ||
4 - 5 years | ||
Over 5 years | 1,808,530.62 | 2,681,973.01 |
Total | 62,181,941.03 | 23,619,117.01 |
(2) Disclosure by category based on the method for provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Balance at the end of the period | Balance at the beginning of the period | ||||||||
Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
Amount | Ratio (%) | Amount | Proportion of provision (%) | Amount | Ratio (%) | Amount | Proportion of provision (%) | |||
Provision for bad debts accrued on an individual basis | ||||||||||
Bad debt provision assessed by portfolio | 62,181,941.03 | 100 | 1,808,530.62 | 2.91 | 60,373,410.41 | 23,619,117.01 | 100 | 2,681,973.01 | 11.36 | 20,937,144.00 |
Including: | ||||||||||
Bad debt provision assessed by portfolio | 62,181,941.03 | 100 | 1,808,530.62 | 2.91 | 60,373,410.41 | 23,619,117.01 | 100 | 2,681,973.01 | 11.36 | 20,937,144.00 |
Total | 62,181,941.03 | / | 1,808,530.62 | / | 60,373,410.41 | 23,619,117.01 | / | 2,681,973.01 | / | 20,937,144.00 |
Bad debt provision assessed by portfolio:
√Applicable □N/A
Items with provision by portfolio: aging analysis method
Monetary Unit: Yuan Currency:
RMB
Name | Balance at the end of the period | ||
Accounts receivable | Provision for bad debts | Proportion of provision (%) | |
Within 1 year | 60,373,410.41 | ||
1 - 2 years | |||
2 - 3 years | |||
3 - 4 years | |||
4 - 5 years | |||
Over 5 years | 1,808,530.62 | 1,808,530.62 | 100.00 |
Total | 62,181,941.03 | 1,808,530.62 | 2.91 |
Description of provision for bad debts made by portfolio:
□Applicable √N/A
(3) Provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Balance at the beginning of the period | Change in this period | Balance at the end of the period | |||
Provision | Recovery or reversal | Write-off or charge-off | Other changes | |||
Provision for bad debts accrued on the basis of portfolio | 2,681,973.01 | 873,442.39 | 1,808,530.62 | |||
Total | 2,681,973.01 | 873,442.39 | 1,808,530.62 |
Reversal or recovery of significant amount of provision for bad debts in the current period:
□Applicable √N/A
(4) Accounts receivable write off in 2023
□Applicable √N/A
(5) Top 5 of accounts receivable presented by debtor, and contract assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Entity name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balances of accounts receivable and contract assets | Proportion in the total of balances of accounts receivable and contract assets at the end of the period(%) | Ending balance of provision for bad debts |
Xunfeng Technology (Guizhou) Co., Ltd. | 60,373,410.41 | 60,373,410.41 | 97.09 | ||
Tianjin Feimeng Industrial Co., Ltd. | 784,900.00 | 784,900.00 | 1.26 | 784,900.00 | |
Shanghai International Wine Development Co., Ltd. | 375,776.00 | 375,776.00 | 0.61 | 375,776.00 |
Shenzhen Friendship Shopping Mall | 194,200.00 | 194,200.00 | 0.31 | 194,200.00 | |
Shenzhen Grain and Oil Import and Export Co., Ltd., Beijing Branch | 109,504.86 | 109,504.86 | 0.18 | 109,504.86 | |
Total | 61,837,791.27 | 61,837,791.27 | 99.45 | 1,464,380.86 |
6. Prepayments
(1) Presentation of prepayments by aging
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Aging | Balance at the end of the period | Balance at the beginning of the period | ||
Amount | Ratio (%) | Amount | Ratio (%) | |
Within 1 year | 25,484,238.38 | 73.69 | 684,728,825.92 | 76.31 |
1 - 2 years | 8,118,647.00 | 23.47 | 204,055,296.64 | 22.74 |
2 - 3 years | 233,459.62 | 0.68 | 401,806.42 | 0.04 |
Over 3 years | 748,766.79 | 2.16 | 8,191,233.29 | 0.91 |
Total | 34,585,111.79 | 100.00 | 897,377,162.27 | 100.00 |
(2) Top 5 of prepayments presented by supplier
√Applicable □N/A
Entity name | Balance at the end of the period | Proportion in the total ending balance of Prepayments (%) |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 10,495,000.00 | 30.34 |
People’s Government of Renhuai City | 8,000,000.00 | 23.13 |
Sinopec Sales Co., Ltd. Guizhou Zunyi Petroleum Branch | 4,090,223.34 | 11.83 |
Beijing Aimu Youxue Trade Co., Ltd. | 2,800,733.29 | 8.10 |
Mars Wrigley Confectionery (China) Ltd. | 1,133,423.99 | 3.28 |
Total | 26,519,380.62 | 76.68 |
7. Other receivables
Presentation of items
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Interest receivable | ||
Dividends receivable | ||
Other receivables | 27,502,107.30 | 31,818,622.84 |
Total | 27,502,107.30 | 31,818,622.84 |
Other receivables
(1) Disclosure by aging
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Aging | Book balance as at the end of the period | Book balance at the beginning of the period |
Within 1 year | 11,715,649.28 | 27,748,377.88 |
Sub-total within 1 year | 11,715,649.28 | 27,748,377.88 |
1 - 2 years | 13,852,727.47 | 2,154,433.82 |
2 - 3 years | 600,382.00 | 25,223.08 |
3 - 4 years | 500.00 | 984,867.43 |
4 - 5 years | 593,258.43 | 967,917.47 |
Over 5 years | 905,012.22 | 37,951.22 |
Total | 27,667,529.40 | 31,918,770.90 |
(2) Classification by nature of payment
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Nature of payment | Book balance as at the end of the period | Book balance at the beginning of the period |
Petty cash | 6,265,395.91 | 11,519,390.69 |
Current payment | 21,402,133.49 | 20,399,380.21 |
Total | 27,667,529.40 | 31,918,770.90 |
(3) Provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Provision for bad debts | Stage I | Stage II | Stage III | Total |
12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
Balance as at January 1, 2023 | 5,500.02 | 94,648.04 | 100,148.06 | |
Balance as at January 1, 2023 in the current period | ||||
- Transfer to Stage II | -5,500.02 | 5,500.02 | ||
- Transfer to Stage III | ||||
- Reversal from Stage II | ||||
- Reversal from Stage I | ||||
Provision in the current period | 8,482.86 | 68,556.96 | 77,039.82 | |
Reversal in the current period | 465.78 | 11,300.00 | 11,765.78 | |
Charge-off in the current period | ||||
Write-off in the current period | ||||
Other changes | ||||
Balance as at December 31, 2023 | 8,017.08 | 157,405.02 | 165,422.10 |
Notes to the obvious changes in the book balance of other receivables with changes in provision for losses
in the current period:
□Applicable √N/A
(4) Provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Balance at the beginning of the period | Change in this period | Balance at the end of the period | |||
Provision | Recovery or reversal | Write-off or charge-off | Other changes | |||
Provision for the bad debts accrued on the basis of aging portfolio | 100,148.06 | 77,039.82 | 11,765.78 | 165,422.10 | ||
Total | 100,148.06 | 77,039.82 | 11,765.78 | 165,422.10 |
(5) Other receivables write off in the current period
□Applicable √N/A
Specifically, significant other receivables to be written off:
□Applicable √N/A
Notes to write-off of other receivables:
□Applicable √N/A
(6) Top 5 of other receivables presented by debtor
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Entity name | Balance at the end of the period | Proportion in the total ending balance of other receivables (%) | Nature of payment | Aging | Provision for bad debts Balance at the end of the period |
China Railway 22nd Bureau Group Co., Ltd. | 2,662,173.76 | 9.62 | Current payment | Within 1 year | |
Guizhou Airport Passenger & Cargo Transportation Sales Co., Ltd. | 603,459.00 | 2.18 | Current payment | Within 1 year | |
Tianjin Kaixuanmen Department Store Co., Ltd. | 600,000.00 | 2.17 | Current payment | 1 - 2 years | |
Luo Meng | 596,879.35 | 2.16 | Petty cash | Within 1 year | |
Jiangsu Jingsai Wine Industry Development Co., Ltd. | 581,370.00 | 2.10 | Current payment | Within 1 year | |
Total | 5,043,882.11 | 18.23 | / | / |
A. Receivables of China Railway 22nd Bureau Group Co., Ltd. refer to the water and electricity chargesat Xinzhai and Dadi production areas paid by Heyixing Liquor Branch of Kweichow Moutai Co., Ltd.on the Company's behalf.
B. Receibales of Guizhou Airport Passenger and Cargo Transportation Sales Co., Ltd. refer to theprepayment for air tickets of Guizhou Laymau Liquor Industry Co., Ltd., a controlling subsidiary of theCompany.
C. Receivables of Tianjin Kaixuanmen Department Store Co.,, Ltd. refer to the rent deposit paid byKweichow Moutai Sales Co., Ltd., a controlling subsidiary of the Company.
D. Luo Meng is an employee of the Company, and the loans are for litigation and market rightsprotection.
E. Receivables of Jiangsu Jingsai Wine Industry Development Co., Ltd. refer to the security deposit paidby Beijing Friendship Messenger Trading Co., Ltd., a holding subsidiary of the Company.
8. Redemptory Monetary Capital for Sale
(1) By the type of counterparty
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Bank | ||
Other financial institutions | 3,504,953,059.15 | |
Sub-total | 3,504,953,059.15 | |
Less: provision for impairment | 103,174.10 | |
Total | 3,504,849,885.05 |
(2) By the type of guaranty
Item | Balance at the end of the period | Balance at the beginning of the period |
Bond | 3,504,953,059.15 | |
Notes | ||
Sub-total | 3,504,953,059.15 | |
Less: provision for impairment | 103,174.10 | |
Total | 3,504,849,885.05 |
9. Inventories
(1) Classification of inventories
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||||
Book balance | Provision for inventory depreciation reserve/provision for impairment of contract performance costs | Book value | Book balance | Provision for inventory depreciation reserve/provision for impairment of contract performance costs | Book value | |
Raw materials | 3,364,894,351.00 | 3,364,894,351.00 | 3,917,462,473.00 | 3,917,462,473.00 | ||
Goods in progress | 22,150,516,271.98 | 1,283,984.83 | 22,149,232,287.15 | 17,311,447,077.83 | 1,283,984.83 | 17,310,163,093.00 |
Commodity stocks | 2,213,035,622.06 | 2,213,035,622.06 | 1,814,110,748.17 | 1,814,110,748.17 | ||
Self-manufactured semi-finished products | 18,708,022,801.32 | 18,708,022,801.32 | 15,782,637,922.07 | 15,782,637,922.07 | ||
Total | 46,436,469,046.36 | 1,283,984.83 | 46,435,185,061.53 | 38,825,658,221.07 | 1,283,984.83 | 38,824,374,236.24 |
(2) Provision for inventory depreciation and provision for impairment of contract performance costs
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Balance at the end of the period | ||
Provision | Others | Reversal or write-off | Others | |||
Goods in progress | 1,283,984.83 | 1,283,984.83 | ||||
Total | 1,283,984.83 | 1,283,984.83 |
10. Non-current assets maturing within one year
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Other non-current assets maturing within one year | 2,123,601,333.33 | |
Total | 2,123,601,333.33 |
11. Other current assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Value-added tax not deducted at the end of the period | 40,142,035.75 | 159,246,337.97 |
Prepaid income tax | 31,261,870.82 | 1,597,336.45 |
Total | 71,403,906.57 | 160,843,674.42 |
12. Loans and payments
Monetary Unit: Yuan Currency: RMB
Item | Amount at the end of the period | Amount at the beginning of the period |
Loans and payments | 2,130,818,189.27 | 4,134,744,407.92 |
Item | Amount at the end of the period | Amount at the beginning of the period |
Total loans and advances to customers | 2,187,006,375.03 | 4,240,663,874.72 |
Less: Provision for impairment of loans | 56,188,185.76 | 105,919,466.80 |
Book value of loans and advances to customers | 2,130,818,189.27 | 4,134,744,407.92 |
13. Debt investment
(1) Information on Debt investment
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Ministry of Finance of the People's Republic of China (National debt) | 510,466,944.94 | 510,466,944.94 | ||||
Bank of Guiyang Co., Ltd. | 3,213,667,940.23 | 657,943.12 | 3,213,009,997.11 | 60,323,095.93 | 34,290.00 | 60,288,805.93 |
Bank of Guizhou Co., Ltd. | 506,302,054.81 | 103,656.62 | 506,198,398.19 | 300,425,342.45 | 170,550.00 | 300,254,792.45 |
Agricultural Bank of China Limited | 102,003,836.17 | 20,883.53 | 101,982,952.64 | |||
China Minsheng Banking Corp., Ltd., Guiyang Branch | 991,546,780.25 | 203,002.11 | 991,343,778.14 | |||
Guiyang GY Financial Leasing Co., Ltd. | 20,153,150.71 | 11,430.00 | 20,141,720.71 | |||
Total | 5,323,987,556.40 | 985,485.38 | 5,323,002,071.02 | 380,901,589.09 | 216,270.00 | 380,685,319.09 |
Changes in the provision for impairment of debt investment in the current period
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period |
Bank of Guiyang Co., Ltd. | 34,290.00 | 623,653.12 | 657,943.12 | |
Bank of Guizhou Co., Ltd. | 170,550.00 | 66,893.38 | 103,656.62 | |
Guiyang GY Financial Leasing Co., Ltd. | 11,430.00 | 11,430.00 | ||
Agricultural Bank of China Limited | 20,883.53 | 20,883.53 | ||
China Minsheng Banking Corp., Ltd., Guiyang Branch | 203,002.11 | 203,002.11 | ||
Total | 216,270.00 | 847,538.76 | 78,323.38 | 985,485.38 |
(2) Important Debt investment at the end of the period
□Applicable √N/A
(3) Provision for impairment
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Provision for impairment | Stage I | Stage II | Stage III | Total |
12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
Balance as at January 1, 2023 | 216,270.00 | 216,270.00 | ||
Balance as at January 1, 2023 in the current period | ||||
- Transfer to Stage II | ||||
- Transfer to Stage III | ||||
- Reversal from Stage II | ||||
- Reversal from Stage I | ||||
Provision in the current period | 847,538.76 | 847,538.76 | ||
Reversal in the current period | 78,323.38 | 78,323.38 |
Charge-off in the current period | ||||
Write-off in the current period | ||||
Other changes | ||||
Balance as at December 31, 2023 | 985,485.38 | 985,485.38 |
Notes to the obvious changes in the book balance of Debt investment with changes in provision for lossesin the current period:
□Applicable √N/A
14. Other non-current financial assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Financial assets measured at fair value through profit or loss | 4,002,439,902.57 | |
Including: other equity instrument investments | 4,002,439,902.57 | |
Total | 4,002,439,902.57 |
Other notes:
√Applicable □N/A
Details:
Item | Balance at the end of the period | Balance at the beginning of the period |
Moutai Zhaohua (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | 2,001,383,129.22 | |
Moutai Jinshi (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | 2,001,056,773.35 | |
Total | 4,002,439,902.57 |
15. Investment property
Measurement method of investment properties
(1) Investment properties measured at cost
Monetary Unit: Yuan Currency: RMB
Item | Buildings and constructions | Land use right | Construction in progress | Total |
I. Original book value | ||||
1. Balance at the beginning of the period | 6,486,158.39 | 6,486,158.39 | ||
2. Increase in the current period | 9,722,908.42 | 9,722,908.42 | ||
(1) Outsourcing | ||||
(2) Transfer of inventory, fixed assets and construction in progress | 9,722,908.42 | 9,722,908.42 | ||
(3) Increase in business combination |
3. Decrease in the current period | 6,486,158.39 | 6,486,158.39 | ||
(1) Disposal | 5,654,373.87 | 5,654,373.87 | ||
(2) Other transfer-out | 831,784.52 | 831,784.52 | ||
4. Balance at the end of the period | 9,722,908.42 | 9,722,908.42 | ||
II. Accumulated depreciation and accumulated amortization | ||||
1. Balance at the beginning of the period | 1,151,111.40 | 1,151,111.40 | ||
2. Increase in the current period | 5,795,934.16 | 5,795,934.16 | ||
(1) Provision or amortization | 570,030.76 | 570,030.76 | ||
(2) Transfer of inventory, fixed assets and construction in progress | 5,225,903.40 | 5,225,903.40 | ||
3. Decrease in the current period | 1,362,682.47 | 1,362,682.47 | ||
(1) Disposal | 1,215,300.57 | 1,215,300.57 | ||
(2) Other transfer-out | 147,381.90 | 147,381.90 | ||
4. Balance at the end of the period | 5,584,363.09 | 5,584,363.09 | ||
III. Provision for impairment | ||||
1. Balance at the beginning of the period | ||||
2. Increase in the current period | ||||
(1) Provision | ||||
3. Decrease in the current period | ||||
(1) Disposal | ||||
(2) Other transfer-out | ||||
4. Balance at the end of the period | ||||
IV. Book value | ||||
1. Book value at the end of the period | 4,138,545.33 | 4,138,545.33 | ||
2. Book value at the beginning of the period | 5,335,046.99 | 5,335,046.99 |
(2) Investment properties with pending certificate of title
□Applicable √N/A
(3) Impairment test on investment properties measured at cost
□Applicable √N/A
16. Fixed assets
Presentation of items
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Fixed assets | 19,909,280,655.97 | 19,742,622,547.86 |
Disposal of fixed assets | ||
Total | 19,909,280,655.97 | 19,742,622,547.86 |
Fixed assets
(1) Fixed assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Buildings and constructions | Machinery equipment | Transportation facilities | Electronic equipment and others | Total |
I. Original book value: | |||||
1. Balance at the beginning of the period | 27,590,962,317.46 | 2,443,079,166.06 | 384,643,338.97 | 898,653,619.30 | 31,317,338,441.79 |
2. Increase in the current period | 1,508,749,513.35 | 150,949,940.55 | 55,003,468.57 | 155,749,548.89 | 1,870,452,471.36 |
(1) Purchase | 12,705,636.65 | 5,375,039.39 | 43,983,653.27 | 79,850,866.70 | 141,915,196.01 |
(2) Transferred from construction in progress | 1,491,410,284.09 | 145,574,901.16 | 11,019,815.30 | 75,896,410.01 | 1,723,901,410.56 |
(3) Increase in business combination | |||||
(4) Translation of foreign currency statements | 3,801,808.09 | 2,272.18 | 3,804,080.27 | ||
(5) Transferred from investment properties | 831,784.52 | 831,784.52 | |||
3. Decrease in the current period | 79,073,214.36 | 15,757,596.04 | 4,190,028.29 | 37,654,047.44 | 136,674,886.13 |
(1) Disposal or scrapping | 59,311,698.22 | 15,757,596.04 | 4,190,028.29 | 37,654,047.44 | 116,913,369.99 |
(2) Translation of foreign currency statements | |||||
(3) Transferred to investment properties/ construction in progress | 19,761,516.14 | 19,761,516.14 | |||
4. Balance at the end of the period | 29,020,638,616.45 | 2,578,271,510.57 | 435,456,779.25 | 1,016,749,120.75 | 33,051,116,027.02 |
II. Accumulated depreciation | |||||
1. Balance at the beginning of the period | 9,134,918,120.82 | 1,504,770,035.40 | 233,468,705.45 | 700,491,815.46 | 11,573,648,677.13 |
2. Increase in the current period | 1,366,997,777.14 | 166,683,280.60 | 44,315,763.36 | 73,951,522.63 | 1,651,948,343.73 |
(1) Provision | 1,365,909,652.72 | 166,683,280.60 | 44,315,763.36 | 73,950,264.76 | 1,650,858,961.44 |
(2) Translation of foreign currency statements | 940,742.52 | 1,257.87 | 942,000.39 | ||
(5) Transferred from investment properties | 147,381.90 | 147,381.90 | |||
3. Decrease in the current period | 32,208,545.72 | 12,574,674.26 | 3,948,968.90 | 36,096,677.73 | 84,828,866.61 |
(1) Disposal or scrapping | 26,068,710.64 | 12,574,674.26 | 3,948,968.90 | 36,096,677.73 | 78,689,031.53 |
(2) Translation of foreign currency statements | |||||
(3) Transferred to investment properties/ construction in progress | 6,139,835.08 | 6,139,835.08 | |||
4. Balance at the end of the period | 10,469,707,352.24 | 1,658,878,641.74 | 273,835,499.91 | 738,346,660.36 | 13,140,768,154.25 |
III. Provision for impairment |
1. Balance at the beginning of the period | 1,060,865.02 | 6,351.78 | 1,067,216.80 | ||
2. Increase in the current period | |||||
(1) Provision | |||||
(2) Translation of foreign currency statements | |||||
3. Decrease in the current period | |||||
(1) Disposal or scrapping | |||||
(2) Translation of foreign currency statements | |||||
4. Balance at the end of the period | 1,060,865.02 | - | 6,351.78 | 1,067,216.80 | |
IV. Book value | |||||
1. Book value at the end of the period | 18,550,931,264.21 | 918,332,003.81 | 161,621,279.34 | 278,396,108.61 | 19,909,280,655.97 |
2. Book value at the beginning of the period | 18,456,044,196.64 | 937,248,265.64 | 151,174,633.52 | 198,155,452.06 | 19,742,622,547.86 |
(2). Fixed assets leased under operating lease
□Applicable √N/A
(3). Fixed assets with pending certificates of title
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Book value | Reason for pending certificates of title |
Newly added Technical transformation project of 2,500 tons of Moutai liquor in the second phase of the 10,000-ton Moutai liquor Project during the "Twelfth Five-Year Plan” (2012) | 558,732,546.81 | It is being processed. |
2000-ton Moutai Prince liquor-making technical transformation project and supporting facilities project in 2011 | 347,096,637.47 | It is being processed. |
Newly added 2800-ton Moutai Prince liquor-making technical transformation project and supporting facilities in 2012 | 217,303,556.07 | It is being processed. |
Moutai Huanshan Liquor Storage Area Project | 473,176,627.15 | It is being processed. |
Technical transformation project and supporting facilities for the Making of Moutai-flavor Series Liquor | 1,013,808,067.72 | It is being processed. |
17. Construction in progress
Presentation of items
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Construction in progress | 2,137,464,700.45 | 2,208,329,892.95 |
Project materials | ||
Total | 2,137,464,700.45 | 2,208,329,892.95 |
Construction in progress
(1) Construction in progress
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Construction in progress | 2,137,464,700.45 | 2,137,464,700.45 | 2,208,329,892.95 | 2,208,329,892.95 | ||
Total | 2,137,464,700.45 | 2,137,464,700.45 | 2,208,329,892.95 | 2,208,329,892.95 |
(2). Changes in important construction in progress in the current period
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Budget amount | Beginning Balance | Increase in the current period | Amount transferred into fixed assets in current period | Other decreases in the current period | Ending Balance | Proportion of accumulative project investments in budget (%) | Progress of construction | Accumulated capitalization amount of interest | Including: capitalization amount of interest in the current period | Capitalization rate of interest in current period (%) | Source of funds |
Technical transformation project of Moutai liquor and its supporting facilities in Zhonghua Area during the 13th Five-Year Plan | 3,559,000,000.00 | 250,130,782.96 | 29,851,773.33 | 35,256,011.55 | 244,726,544.74 | 85 | 100% | Self-raised | ||||
Technical transformation project of 30,000-ton Moutai-flavor series wine and its supporting facilities | 8,384,000,000.00 | 1,366,003,184.12 | 591,561,177.01 | 885,237,350.65 | 1,072,327,010.48 | 65 | 90% | Self-raised | ||||
Phase I Project of Packaging Logistics Park Project | 7,833,000,000.00 | 3,716,801.92 | 70,929,022.56 | 74,645,824.48 | 5 | 10% | Self-raised | |||||
First Phase Construction Project of the "14th Five-Year Plan" Moutai-flavor Liquor Xishui Tongminba | 4,110,000,000.00 | 3,603,511.82 | 249,052,730.65 | 252,656,242.47 | 21 | 30% | Self-raised | |||||
Technical transformation and construction project of Moutai Liquor during the 14th Five-Year Plan period | 15,516,000,000.00 | 805,658.85 | 7,280,160.70 | 8,085,819.55 | 8 | 19% | Self-raised | |||||
Construction of 30 blocks of wine storehouses in Zhonghua Area | 1,587,000,000.00 | 151,164,296.13 | 151,164,296.13 | 12 | 41% | Self-raised | ||||||
Technical transformation project and supporting facilities project for the Making of Moutai-flavor Series Liquor (6400 tons) | 3,454,160,000.00 | 60 | 100% | Self-raised | ||||||||
Total | 44,443,160,000.00 | 1,624,259,939.67 | 1,099,839,160.38 | 920,493,362.20 | 1,803,605,737.85 | / | / | / | / |
18. Right-of-use assets
(1) Details of right-of-use assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Buildings and constructions | Machinery equipment | Total |
I. Original book value | |||
1. Balance at the beginning of the period | 514,662,162.66 | 9,525,145.70 | 524,187,308.36 |
2. Increase in the current period | 38,133,874.04 | 38,133,874.04 | |
(1) Lease-in | 38,133,874.04 | 38,133,874.04 | |
3. Decrease in the current period | 125,458,409.35 | 125,458,409.35 | |
(1) Disposal | 125,458,409.35 | 125,458,409.35 | |
4. Balance at the end of the period | 427,337,627.35 | 9,525,145.70 | 436,862,773.05 |
II. Accumulated depreciation | |||
1. Balance at the beginning of the period | 117,825,716.60 | 3,810,058.30 | 121,635,774.90 |
2. Increase in the current period | 70,538,810.05 | 1,905,029.16 | 72,443,839.21 |
(1) Provision | 70,538,810.05 | 1,905,029.16 | 72,443,839.21 |
3. Decrease in the current period | 71,422,325.62 | 71,422,325.62 | |
(1) Disposal | 71,422,325.62 | 71,422,325.62 | |
4. Balance at the end of the period | 116,942,201.03 | 5,715,087.46 | 122,657,288.49 |
III. Provision for impairment | |||
1. Balance at the beginning of the period | |||
2. Increase in the current period | |||
(1) Provision | |||
3. Decrease in the current period | |||
(1) Disposal | |||
4. Balance at the end of the period | |||
IV. Book value | |||
1. Book value at the end of the period | 310,395,426.32 | 3,810,058.24 | 314,205,484.56 |
2. Book value at the beginning of the period | 396,836,446.06 | 5,715,087.40 | 402,551,533.46 |
19 Intangible assets
(1) Details of intangible assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Land use right | Software development | Total |
I. Original book value |
1. Balance at the beginning of the period | 8,001,712,205.40 | 56,730,121.32 | 8,058,442,326.72 |
2. Increase in the current period | 1,530,747,028.00 | 154,999,926.12 | 1,685,746,954.12 |
(1) Purchase | 1,530,747,028.00 | 38,929,039.09 | 1,569,676,067.09 |
(2) Internal research and development | 116,070,887.03 | 116,070,887.03 | |
(3) Increase in business combination | |||
3. Decrease in the current period | |||
(1) Disposal | |||
4. Balance at the end of the period | 9,532,459,233.40 | 211,730,047.44 | 9,744,189,280.84 |
II. Accumulated amortization | |||
1. Balance at the beginning of the period | 931,455,433.12 | 43,809,667.15 | 975,265,100.27 |
2. Increase in the current period | 185,724,451.69 | 10,932,415.04 | 196,656,866.73 |
(1) Provision | 185,724,451.69 | 10,932,415.04 | 196,656,866.73 |
3. Decrease in the current period | |||
(1) Disposal | |||
4. Balance at the end of the period | 1,117,179,884.81 | 54,742,082.19 | 1,171,921,967.00 |
III. Provision for impairment | |||
1. Balance at the beginning of the period | |||
2. Increase in the current period | |||
(1) Provision | |||
3. Decrease in the current period | |||
(1) Disposal | |||
4. Balance at the end of the period | |||
IV. Book value | |||
1. Book value at the end of the period | 8,415,279,348.59 | 156,987,965.25 | 8,572,267,313.84 |
2. Book value at the beginning of the period | 7,070,256,772.28 | 12,920,454.17 | 7,083,177,226.45 |
(2) Land use right with pending certificates of title
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Book value | Reason for pending certificates of title |
Moutai Huanshan Liquor Storage Area Project | 144,000,000.00 | It is being processed |
Phase I and Phase II Moutai liquor technical transformation project in Zhonghua Area | 2,141,855,569.18 | It is being processed |
Newly added Technical transformation project of 2,500 tons of Moutai liquor in the second phase of the 10,000-ton Moutai liquor Project during the "Twelfth Five-Year Plan” (2012) | 330,000,000.00 | It is being processed |
First batch of construction projects at Tanchang Area in Recycling Economy Science and Technology Demonstration Park | 428,000,000.00 | It is being processed |
Technical transformation project and supporting facilities for the Making of Moutai-flavor Series Liquor | 352,681,578.55 | It is being processed |
Technical transformation project for 2000 tons of Moutai Prince Liquor and technical transformation project for 2800 tons of Moutai Prince Liquor | 30,000,000.00 | It is being processed |
Technical transformation project of Moutai liquor and its supporting facilities in Zhonghua Area during the 13th Five-Year Plan | 215,259,100.00 | It is being processed |
Technical transformation project of 30,000-ton Moutai-flavor series wine and its supporting facilities | 998,256,302.95 | Construction in progress |
20. Development expenses
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Balance at the end of the period | ||
Internal R&D expenses | Others | Recognized as intangible assets | Transferred in current profit or loss | |||
Project research and development | 190,536,632.60 | 143,549,809.92 | 116,070,887.03 | 218,015,555.49 | ||
Total | 190,536,632.60 | 143,549,809.92 | 116,070,887.03 | 218,015,555.49 |
21. Long-term deferred expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in the current period | Amortization in the current period | Other decreases | Balance at the end of the period |
Reconstruction project of road from central city to Moutai | 127,500,000.29 | 9,999,999.96 | 117,500,000.33 | ||
Overhaul expenses of fixed assets | 14,592,803.00 | 22,610,187.14 | 5,526,598.95 | 31,676,391.19 | |
Renovation of office building | 4,362,543.61 | 7,880,004.96 | 1,360,009.95 | 10,882,538.62 | |
Total | 146,455,346.90 | 30,490,192.10 | 16,886,608.86 | 160,058,930.14 |
Remark: the reconstruction project of road from central city to Moutai is based on the resolution made atthe third meeting of the second Board of Directors in 2013. The Company and Renhuai UrbanDevelopment and Construction Investment Management Co., Ltd. jointly completed the roadreconstruction project from the central city to Moutai and transferred the project for amortization.
22. Deferred tax assets / Deferred tax liabilities
(1) Deferred tax assets without offset
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||
Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets |
Provision for asset impairment | 30,956,286.95 | 7,739,071.75 | 71,744,171.40 | 17,936,042.85 |
Unrealized profits of internal transactions | 14,956,404,209.03 | 3,739,101,052.26 | 10,912,264,732.27 | 2,728,066,183.07 |
Achievements-related wages that shall be distributed but not distributed | 214,872,045.38 | 53,718,011.35 | 214,872,045.38 | 53,718,011.35 |
Others | 3,381,317,159.02 | 845,329,289.74 | 3,180,928,926.43 | 795,232,231.61 |
Total | 18,583,549,700.38 | 4,645,887,425.10 | 14,379,809,875.48 | 3,594,952,468.88 |
(2) Deferred tax liabilities without offset
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||
Taxable temporary differences | Deferred income tax Liabilities | Taxable temporary differences | Deferred income tax Liabilities | |
Others | 315,772,248.74 | 78,943,062.19 | 650,512,363.93 | 162,628,090.99 |
Total | 315,772,248.74 | 78,943,062.19 | 650,512,363.93 | 162,628,090.99 |
(3) Deferred tax assets or liabilities presented by net amount after offset
□Applicable √N/A
(4) Details of unrecognized deferred tax assets
□Applicable √N/A
(5) Deductible losses of unrecognized deferred tax assets will be expired in the following years
□Applicable √N/A
23. Other non-current assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment in information-based construction | 68,604,129.75 | 68,604,129.75 | ||||
Others | 40,959,367.48 | 40,959,367.48 | ||||
Total | 109,563,497.23 | 109,563,497.23 |
24. Assets with restrictions on the ownership or use right
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Ending | Beginning | ||||||
Book balance | Book value | Type of restriction | Restriction | Book balance | Book value | Type of restriction | Restriction | |
Cash and cash equivalents | 5,991,813,679.87 | 5,991,813,679.87 | Others | 6,418,765,887.71 | 6,418,765,887.71 | Others | ||
Loans to banks and other financial institutions | 16,000,000,000.00 | 16,000,000,000.00 | Others | 14,000,000,000.00 | 14,000,000,000.00 | Others | ||
Total | 21,991,813,679.87 | 21,991,813,679.87 | / | / | 20,418,765,887.71 | 20,418,765,887.71 | / | / |
25. Accounts payable
(1) Presentation of accounts payable
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Payables for goods | 3,093,091,103.67 | 2,408,371,053.69 |
Total | 3,093,091,103.67 | 2,408,371,053.69 |
26. Contract liabilities
(1) Details of contract liabilities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Advances from customers for goods | 14,125,755,802.29 | 15,471,920,924.98 |
Total | 14,125,755,802.29 | 15,471,920,924.98 |
(2) Significant contract liabilities with aging of more than 1 year
□Applicable √N/A
(3) Amounts with and reasons for significant changes in book values during the reporting period
□Applicable √N/A
27. Absorption of deposits and interbank deposits
Monetary Unit: Yuan Currency: RMB
Item | Amount at the end of the period | Amount at the beginning of the period |
Absorption of deposits | 12,034,492,909.95 | 12,874,043,355.42 |
Total | 12,034,492,909.95 | 12,874,043,355.42 |
28. Employee compensation payable
(1) Presentation of employee compensation payable
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period |
I. Short-term compensation | 4,779,361,358.86 | 12,860,471,170.25 | 12,240,749,239.20 | 5,399,083,289.91 |
II. Post-departure benefits - defined contribution plans | 2,874,310.91 | 1,865,864,052.33 | 1,865,900,439.38 | 2,837,923.86 |
III. Dismissal welfare | 75,572.64 | 27,658,007.53 | 27,733,580.17 | |
IV. Other benefits due within one year | ||||
Total | 4,782,311,242.41 | 14,753,993,230.11 | 14,134,383,258.75 | 5,401,921,213.77 |
(2) Presentation of short-term compensation
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period |
I. Wages, bonus, allowances and subsidies | 4,684,139,634.86 | 10,017,696,441.86 | 9,416,093,573.40 | 5,285,742,503.32 |
II. Employee welfare expenses | 1,383,779.27 | 727,508,797.04 | 727,600,621.28 | 1,291,955.03 |
III. Social insurance premiums | 50,294,294.97 | 1,045,581,463.19 | 1,030,797,147.64 | 65,078,610.52 |
Including: medical insurance premium | 50,292,546.01 | 985,396,665.14 | 970,616,022.64 | 65,073,188.51 |
Work-related injury insurance premium | 1,748.96 | 60,184,798.05 | 60,181,125.00 | 5,422.01 |
IV. Housing provident funds | 813,883,498.44 | 813,878,555.64 | 4,942.80 | |
V. Labor union expenditure and employee education expenses | 40,495,555.66 | 229,830,619.53 | 223,460,899.90 | 46,865,275.29 |
VI. Short-term compensated absences | ||||
VII. Short-term profit sharing plan | ||||
Others | 3,048,094.10 | 25,970,350.19 | 28,918,441.34 | 100,002.95 |
Total | 4,779,361,358.86 | 12,860,471,170.25 | 12,240,749,239.20 | 5,399,083,289.91 |
(3) Presentation of defined contribution plans
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period |
1. Basic endowment insurance premiums | 76,691.16 | 1,091,394,100.23 | 1,091,239,089.30 | 231,702.09 |
2. Unemployment insurance premiums | 2,330.73 | 47,667,888.75 | 47,662,682.71 | 7,536.77 |
3. Enterprise annuity payment | 2,795,289.02 | 726,802,063.35 | 726,998,667.37 | 2,598,685.00 |
Total | 2,874,310.91 | 1,865,864,052.33 | 1,865,900,439.38 | 2,837,923.86 |
29. Taxes and surcharges payable
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Value-added tax | 1,881,581,299.52 | 2,034,610,620.24 |
Consumption tax | 1,874,912,035.57 | 1,570,075,010.07 |
Enterprise income tax | 2,638,540,568.21 | 2,769,448,025.03 |
Individual income tax | 66,986,409.63 | 69,096,434.63 |
Urban maintenance and construction tax | 274,746,590.57 | 258,837,607.08 |
Educational surtax | 106,206,290.71 | 99,389,745.34 |
Local education surtax | 72,099,890.91 | 67,552,876.94 |
Stamp duty | 33,237,230.00 | 25,330,539.79 |
House property tax | 1,097,614.29 | 809,379.99 |
Land use tax | 10,856.32 | 11,682.07 |
Environmental protection tax | 15,276.52 | 22,267.77 |
Others | 229,831.62 | 1,371,234.88 |
Total | 6,949,663,893.87 | 6,896,555,423.83 |
30. Other payables
(1) Presentation of items
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Interest payable | ||
Dividends payable | ||
Other payables | 5,213,133,685.87 | 4,543,842,833.87 |
Total | 5,213,133,685.87 | 4,543,842,833.87 |
(2) Other payables
Presentation of other payables by nature
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Materials quality guarantee deposit | 262,341,068.61 | 318,075,043.18 |
Engineering quality guarantee deposit | 179,215,172.34 | 173,047,548.78 |
Security deposits of dealers | 2,147,103,416.18 | 1,897,194,013.05 |
Current payment | 2,624,474,028.74 | 2,155,526,228.86 |
Total | 5,213,133,685.87 | 4,543,842,833.87 |
Other significant payables aging over 1 year or overdue
□Applicable √N/A
31. Non-current liabilities maturing within one year
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Lease liabilities maturing within one year | 57,054,879.48 | 109,351,155.28 |
Total | 57,054,879.48 | 109,351,155.28 |
32. Other current liabilities
Details of other current liabilities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Output tax to be carried forward | 1,822,498,012.30 | 1,979,272,808.90 |
Total | 1,822,498,012.30 | 1,979,272,808.90 |
33. Lease liabilities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Long-term lease liabilities | 266,636,234.04 | 334,447,942.79 |
Total | 266,636,234.04 | 334,447,942.79 |
34. Share capital
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Balance at the beginning of the period | Changes (+, -) | Balance at the end of the period | |||||
Issue of new shares | Share donation | Provident funds Share conversion | Others | Sub-total | |||
Total shares | 1,256,197,800.00 | 1,256,197,800.00 |
35. Capital reserves
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period |
Capital premium (share premium) | 1,374,048,653.54 | 1,374,048,653.54 | ||
Other capital reserves | 915,762.18 | 915,762.18 | ||
Total | 1,374,964,415.72 | 1,374,964,415.72 |
36. Other comprehensive income
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Beginning Balance | Amount in the current period | Ending Balance | |||||
Amount before income tax in the current period | Less: amount previously included in other comprehensive income and currently transferred to the profit or loss | Less: amount previously included in other comprehensive income and currently transferred to the retained earnings | Less: income tax expenses | Attributable to parent company after tax | Attributable to non-controlling shareholders after tax | |||
I. Other comprehensive income that cannot be reclassified into profit or loss | ||||||||
Including: changes in re-measurement of the defined benefit plan | ||||||||
Other comprehensive income that cannot be transferred into profit or loss under equity method |
Changes in fair value of other equity instruments | ||||||||
Changes in the fair value of the Company's own credit risk | ||||||||
II. Other comprehensive income that will be reclassified into profit or loss | -10,776,907.33 | 4,715,179.82 | 4,715,179.82 | -6,061,727.51 | ||||
Including: other comprehensive income that can be transferred to profit or loss under the equity method | ||||||||
Changes in fair value of other Debt investments | ||||||||
Amount of financial assets reclassified into other comprehensive income | ||||||||
Provision for credit impairment of other Debt investments | ||||||||
Cash flow hedge reserve | ||||||||
Translation differences of foreign currency financial statements | -10,776,907.33 | 4,715,179.82 | 4,715,179.82 | -6,061,727.51 | ||||
Total of other comprehensive income | -10,776,907.33 | 4,715,179.82 | 4,715,179.82 | -6,061,727.51 |
37. Surplus reserves
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period |
Statutory surplus reserves | 32,520,123,399.97 | 6,478,639,695.16 | 38,998,763,095.13 | |
Discretionary surplus reserves | ||||
Reserve funds | ||||
Enterprise expansion funds | ||||
Others | ||||
Total | 32,520,123,399.97 | 6,478,639,695.16 | 38,998,763,095.13 |
38. General risk reserves
Monetary Unit: Yuan Currency: RMB
Item | Amount at the beginning of the period | Increase in current period | Decrease in current period | Amount at the end of the period |
General risk reserves | 1,061,529,724.00 | 1,061,529,724.00 | ||
Total | 1,061,529,724.00 | 1,061,529,724.00 |
Remark: General risk reserves are accrued by Kweichow Moutai Group Finance Co., Ltd., a holdingsubsidiary of the Company, in accordance with the Administrative Measures for the Withdrawal ofReserves by Financial Enterprises (CJ [2012] No.20) issued by the Ministry of Finance.
39. Retained earnings
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Current period | Previous period |
Retained earnings at the end of the previous period before adjustment | 161,301,978,184.73 | 160,716,861,920.19 |
Adjustment to total retained earning at the beginning of the period (+ for increase and - for decrease) | -23,975,377.63 | -24,637,756.00 |
Retained earnings as at the beginning of the period after adjustment | 161,278,002,807.10 | 160,692,224,164.19 |
Plus: net profit attributable to owners of the parent company in the current period | 74,734,071,550.75 | 62,717,467,870.12 |
Less: withdrawal of statutory surplus reserves | 6,478,639,695.16 | 7,380,308,114.20 |
Withdrawal of discretionary surplus reserves | ||
Withdrawal of general risk reserves | ||
Common stock dividends payable | 56,550,256,362.60 | 54,751,381,113.01 |
Common stock dividends transferred to share capital | ||
Retained earnings at the end of the period | 172,983,178,300.09 | 161,278,002,807.10 |
Details of adjustment to the beginning balance of retained earnings:
Due to the retroactive adjustment made according to the Accounting Standards for Business Enterprisesand relevant new provisions, the affected beginning balance of retained earnings amount to RMB -23,975,377.63.
40. Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period | ||
Income | Cost | Income | Cost | |
Primary business | 147,218,996,281.04 | 11,620,203,653.32 | 123,772,332,348.71 | 9,896,113,336.80 |
Other business | 474,608,713.10 | 247,070,198.46 | 327,511,423.28 | 197,355,279.83 |
Total | 147,693,604,994.14 | 11,867,273,851.78 | 124,099,843,771.99 | 10,093,468,616.63 |
Remark: Other business revenue and costs are mainly the revenue and costs of hotel business and icecream business.
(2) Breakdown of operating revenue and operating costs
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Contract classification | Total | |
Operating revenue | Operating costs | |
By product: | ||
Moutai | 126,589,066,691.89 | 7,445,470,669.11 |
Other series liquor | 20,629,929,589.15 | 4,174,732,984.21 |
Other business | 474,608,713.10 | 247,070,198.46 |
By regional segment: | ||
Domestic | 143,333,311,961.67 | 11,527,282,749.76 |
Overseas | 4,360,293,032.47 | 339,991,102.02 |
By sales channel: | ||
Wholesale agency | 80,336,795,633.78 | 8,699,117,400.66 |
Direct selling | 67,356,809,360.36 | 3,168,156,451.12 |
Total | 147,693,604,994.14 | 11,867,273,851.78 |
(3) Description of performance obligations
√Applicable □N/A
The revenue is confirmed when the customer acquires the control of the goods agreed in the contract andthe Company fulfills the contract performance obligation.
(4) Notes to allocation to remaining performance obligations
√Applicable □N/A
At the end of the reporting period, the revenue corresponding to the performance obligations under signedcontracts that have not fulfilled or not completed yet amounted to RMB 14,125,755,802.29, in which:RMB14,125,755,802.29 will be expected to be recognized in 2024 as revenue.
(5) Significant contract change or price adjustment of major transaction
□Applicable √N/A
41. Interest income, interest expenses, handling charges and commission revenue and expenses on
handling charges and commission
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Interest income | 2,866,725,322.31 | 3,454,115,583.98 |
Revenue from handling charges and commissions | ||
Interest expenses | 113,500,129.93 | 105,584,206.24 |
Handling charge and commission expenses | 68,578.57 | 143,141.51 |
42. Taxes and surtaxes
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Consumption tax | 17,625,306,476.94 | 14,628,644,881.34 |
Urban maintenance and construction tax | 2,467,887,318.97 | 2,055,705,281.43 |
Educational surtax | 1,057,591,004.14 | 880,939,077.72 |
Local education surtax | 705,060,669.63 | 587,292,717.26 |
House property tax | 181,676,451.33 | 170,186,626.63 |
Land use tax | 52,832,783.40 | 47,733,684.72 |
Vehicle and vessel use tax | 444,846.26 | 420,334.81 |
Stamp duty | 140,645,106.42 | 121,037,737.02 |
Tax for environmental protection | 211,744.75 | 212,923.35 |
Others | 2,519,496.76 | 3,645,269.94 |
Total | 22,234,175,898.60 | 18,495,818,534.22 |
43. Selling and distribution expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Expenses for advertising publicity and market expansion | 3,640,663,233.92 | 2,887,804,740.39 |
Transportation expenses and transportation insurance premiums | 17,040,929.95 | 14,658,723.67 |
Travel expenses for marketing and office expenses | 86,810,053.15 | 69,828,805.38 |
Others | 904,099,368.80 | 325,431,921.50 |
Total | 4,648,613,585.82 | 3,297,724,190.94 |
44. General and administrative expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Expenses for employee compensation | 4,350,082,411.58 | 4,348,853,737.71 |
Trademark licensing fee | 1,805,818,609.89 | 1,639,842,153.56 |
Depreciation fee of fixed assets | 612,246,297.65 | 495,038,952.17 |
Environmental remediation expenses | 234,607,957.43 | 191,513,496.34 |
Company expenses | 178,180,760.41 | 177,404,050.78 |
Amortization of intangible assets | 196,656,866.73 | 156,016,278.90 |
Property insurance | 62,309,546.95 | 51,390,201.61 |
Cost of raw material base | 190,898,203.62 | 144,152,150.24 |
House rental fees | 20,301,085.12 | 24,919,167.73 |
Entertainment expenses | 9,045,359.07 | 13,625,245.10 |
Intermediary fees | 113,426,391.89 | 37,289,937.20 |
Land use rent | 2,690,532.60 | 2,690,532.60 |
Expenses of the Board of Directors | 12,473,560.59 | 4,278,509.19 |
Others | 1,940,651,668.78 | 1,725,176,660.50 |
Total | 9,729,389,252.31 | 9,012,191,073.63 |
45. Research and development expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Expenses for employee compensation | 73,934,535.18 | 66,492,415.10 |
Consumables | 5,544,817.57 | 7,893,622.73 |
Expenses for research and development cooperation | 45,969,566.96 | 33,128,020.95 |
Depreciation fee of fixed assets | 18,212,579.23 | 21,067,522.53 |
Company expenses | 1,741,589.48 | 984,742.75 |
Others | 11,968,784.59 | 5,619,356.34 |
Total | 157,371,873.01 | 135,185,680.40 |
46. Financial expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Interest expenses | 12,624,628.35 | 12,023,204.77 |
Including: lease liabilities | 12,624,628.35 | 12,023,204.77 |
Interest income | -1,942,301,920.98 | -1,475,422,303.64 |
Others | 140,173,591.15 | 71,593,272.15 |
Total | -1,789,503,701.48 | -1,391,805,826.72 |
47. Other income
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Classification by nature of payment | Amount in the current period | Amount in the prior period |
Return of handling charges for withholding individual income tax | 16,791,097.40 | 9,422,570.66 |
Income-related government grants | 17,137,523.89 | 13,646,004.55 |
Asset-related government grants | ||
Others | 716,252.57 | 1,436,778.62 |
Total | 34,644,873.86 | 24,505,353.83 |
48. Investment income
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Investment income from disposal of Held-for-trading financial assets | 29,947,301.15 | |
Investment income obtained from disposal of other equity instruments | ||
Investment income from the disposal of Debt investment | ||
Investment income from the disposal of other Debt investment | ||
Income from debt restructuring | ||
Investment returns of industrial funds during their holding period | ||
Income from long-term equity investments under the cost method | ||
Interest income from certificates of deposits during the holding period | 4,078,666.67 | 63,840,000.00 |
Total | 34,025,967.82 | 63,840,000.00 |
49. Income from changes in fair value
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Sources of income from changes in fair value | Amount in the current period | Amount in the prior period |
Held-for-trading financial assets | 3,151,962.50 | |
Including: income from changes in fair value of derivative financial instruments | ||
Financial liabilities held for trading | ||
Investment properties measured at fair value | ||
Total | 3,151,962.50 |
50. Losses from credit impairment
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Losses from bad debts of notes receivable | ||
Losses from bad debts of accounts receivable | 873,442.39 | 415,705.24 |
Losses from bad debts of other receivables | -65,274.04 | 2,502,655.82 |
Losses from impairment of Debt investment | -769,215.38 | -119,880.00 |
Impairment losses from other Debt investment | ||
Losses from bad debts of long-term receivables | ||
Impairment on financial guarantee | ||
Others | 37,832,340.29 | -17,485,027.31 |
Total | 37,871,293.26 | -14,686,546.25 |
Remark: others refer to the provision for impairment made for the loans issued by Kweichow MoutaiGroup Finance Co., Ltd., a controlling shareholder of the Company.
51. Gains from disposal of assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Gains or losses from disposal of fixed assets | 2,574,728.71 | -129,948.22 |
Gains or losses from disposal of right-of-use assets | -3,054,465.68 | 343,183.91 |
Total | -479,736.97 | 213,235.69 |
52. Non-operating revenue
Non-operating revenue
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period | Amount included in non-recurring profit or loss in the current period |
Total gains from disposal of non-current assets | 8,829,933.38 | 282,981.41 | 8,829,933.38 |
Including: gains from disposal of fixed assets | 8,829,933.38 | 282,981.41 | 8,829,933.38 |
Gains from disposal of intangible assets | |||
Gains from exchange of non-monetary assets | |||
Donations received | |||
Government grants | |||
Gains from fines and compensation | 62,293,021.89 | 65,421,527.15 | 62,293,021.89 |
Others | 15,656,700.68 | 5,147,776.84 | 15,656,700.68 |
Total | 86,779,655.95 | 70,852,285.40 | 86,779,655.95 |
53. Non-operating expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period | Amount included in non-recurring profit or loss in the current period |
Total losses from disposal of non-current assets | 7,197,680.24 | 21,063,974.29 | 7,197,680.24 |
Including: losses from disposal of fixed assets | 7,197,680.24 | 21,063,974.29 | 7,197,680.24 |
Losses from disposal of intangible assets | |||
Losses from exchange of non-monetary assets | |||
Donations made | 119,247,336.70 | 225,431,100.98 | 119,247,336.70 |
Others | 6,436,157.58 | 2,389,244.34 | 6,436,157.58 |
Total | 132,881,174.52 | 248,884,319.61 | 132,881,174.52 |
54. Income tax expenses
(1) Table of income tax expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Current income tax expenses | 27,275,697,397.04 | 23,548,077,905.70 |
Deferred income tax expenses | -1,134,619,985.03 | -1,222,628,115.40 |
Total | 26,141,077,412.01 | 22,325,449,790.30 |
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period |
Total profits | 103,662,553,689.81 |
Income tax expenses calculated at statutory/applicable tax rate | 25,915,638,422.45 |
Effect of different tax rates applicable to subsidiaries | |
Effect of adjustments to the income tax for the prior years | |
Effect of non-taxable income | -11,194,606.11 |
Effect of non-deductible costs, expenses and losses | 236,633,595.67 |
Effect of deductible losses from using the deferred tax assets unrecognized in previous periods | |
Effect of deductible temporary differences or losses from deferred tax assets unrecognized in the current period | |
Income tax expenses | 26,141,077,412.01 |
55. Other comprehensive income
√Applicable □N/A
Please refer to Note 36 Other comprehensive income for details
56. Items in the statement of cash flows
(1) Cash relating to operating activities
Cash received from other operating activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Interest income from self-owned funds | 599,047,232.23 | 886,579,338.69 |
Other revenue received | 1,747,149,238.40 | 1,872,842,833.19 |
Total | 2,346,196,470.63 | 2,759,422,171.88 |
Cash paid for other operating activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Cash paid for advertising and publicity expenses | 1,747,846,108.16 | 1,177,149,398.36 |
Cash paid for transportation expenses and transportation insurance premiums | 231,907,323.70 | 205,887,269.67 |
Cash paid for property insurance premiums | 47,413,768.43 | 45,179,150.27 |
Cash paid for other expenses | 5,916,542,317.85 | 3,694,871,614.59 |
Total | 7,943,709,518.14 | 5,123,087,432.89 |
(2) Cash relating to investing activities
Cash received from significant investing activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
23 Postal Savings Bank CD098 (Interbank Certificate of Deposit) | 2,000,000,000.00 |
Large-amount deposit | 2,127,680,000.00 | |
Total | 4,127,680,000.00 |
Cash paid for significant investing activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Moutai Zhaohua (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | 2,000,000,000.00 | |
Moutai Jinshi (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | 2,000,000,000.00 | |
23 Postal Savings Bank CD098 (Interbank Certificate of Deposit) | 1,996,364,000.00 | |
Technical transformation project of Moutai liquor and its supporting facilities in Zhonghua Area during the 13th Five-Year Plan | 32,088,126.54 | 63,374,372.75 |
Technical transformation project of 30,000-ton Moutai-flavor series wine and its supporting facilities | 634,899,976.94 | 995,745,800.00 |
Phase I Project of Packaging Logistics Park Project | 74,327,720.47 | 10,170,110.00 |
First Phase Construction Project of the "14th Five-Year Plan" Moutai-flavor Liquor Xishui Tongminba | 307,440,011.31 | 373,960,827.28 |
Technical transformation and construction project of Moutai Liquor during the 14th Five-Year Plan period | 456,567,050.94 | 852,639.99 |
Construction of 30 blocks of wine storehouses in Zhonghua Area | 184,195,788.00 | |
Total | 7,685,882,674.20 | 1,444,103,750.02 |
Cash received from other investing activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Received performance bond for capital construction projects | 4,605,886.63 | 4,971,762.18 |
Total | 4,605,886.63 | 4,971,762.18 |
Cash paid for other investing activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Refunded performance bond for capital construction projects | 7,021,867.10 | 31,486,829.54 |
Total | 7,021,867.10 | 31,486,829.54 |
(3) Cash relating to financing activities
Cash received from other financing activities
□Applicable √N/A
Cash paid for other financing activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Cash for repayment of lease liabilities | 122,315,261.93 | 54,332,788.37 |
Disposal of equity in secondary subsidiaries | 6,000,000.00 | |
Others | 6,000,000.00 | |
Total | 134,315,261.93 | 54,332,788.37 |
Changes in various liabilities arising from financing activities
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period | ||
Cash change | Non-cash change | Cash change | Non-cash change | |||
Lease liabilities (including the part maturing within one year) | 444,219,465.04 | 58,365,684.31 | 114,805,234.06 | 64,088,801.77 | 323,691,113.52 | |
Total | 444,219,465.04 | 58,365,684.31 | 114,805,234.06 | 64,088,801.77 | 323,691,113.52 |
(4) Description of cash flows presented at net amount
□Applicable √N/A
(5) Significant activities and financial effect not involving with the current cash deposit and
withdrawal but affecting the financial position of the enterprise or affecting the cash flow ofthe enterprise in the future
□Applicable √N/A
57. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Supplementary information | Current period | Prior period |
1. Net profit adjusted to cash flows from operating activities: | ||
Net profit | 77,521,476,277.80 | 65,376,039,957.88 |
Plus: provision for impairment of assets | ||
Losses from credit impairment | -37,871,293.26 | 14,686,546.25 |
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 1,651,428,992.20 | 1,443,574,818.50 |
Amortization of right-of-use assets | 72,443,839.21 | 77,371,590.63 |
Amortization of intangible assets | 196,656,866.73 | 156,016,278.90 |
Amortization of long-term deferred expenses | 16,886,608.86 | 11,487,619.04 |
Losses from disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) | 479,736.97 | -213,235.69 |
Losses from scrapping of fixed assets ("-" for gains) | -1,632,253.14 | 20,780,992.88 |
Losses from changes in fair value ("-" for income) | -3,151,962.50 | |
Financial expenses ("-" for income) | 12,624,628.35 | 12,023,204.77 |
Investment losses ("-" for gains) | -34,025,967.82 | -63,840,000.00 |
Decreases in deferred tax assets ("-" for increases) | -1,050,934,956.22 | -1,210,838,167.12 |
Increases in Deferred tax liabilities ("-" for decreases) | -83,685,028.80 | -11,789,948.28 |
Decreases in inventories ("-" for increases) | -7,610,810,825.29 | -5,430,009,151.41 |
Decreases in operating receivables ("-" for increases) | -3,465,130,974.53 | -15,051,874,095.80 |
Increases in operating payables ("-" for decreases) | -591,505,967.47 | -8,644,820,580.52 |
Others | ||
Net cash flows from operating activities | 66,593,247,721.09 | 36,698,595,830.03 |
2. Significant investing and financing activities not involving in cash inflow and outflow: | ||
Conversion of debt into capital | ||
Convertible corporate bonds maturing within one year | ||
Fixed assets acquired under finance lease | ||
3. Net change in cash and cash equivalents: | ||
Ending balance of cash | 147,360,188,952.47 | 152,378,738,982.83 |
Less: balance of cash as at the beginning of the period | 152,378,738,982.83 | 178,640,587,379.52 |
Plus: ending balance of cash equivalents | 3,000,000,000.00 | |
Less: beginning balance of cash equivalents | ||
Net increase in cash and cash equivalents | -2,018,550,030.36 | -26,261,848,396.69 |
(2) Net cash paid for the acquisition of subsidiaries in the current period
□Applicable √N/A
(3) Net cash received from disposal of subsidiaries in the current period
□Applicable √N/A
(4) Breakdown of cash and cash equivalents
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
1. Cash | 147,360,188,952.47 | 152,378,738,982.83 |
Including: cash on hand | 162,802.00 | 12,740.70 |
Unrestricted bank deposit | 59,924,161,952.72 | 48,074,557,886.36 |
Other unrestricted cash and cash equivalents | ||
Deposits with central bank available for payments | 601,237,204.81 | 2,568,410,342.65 |
Deposits with banks and other financial institutions | 86,834,626,992.94 | 101,735,758,013.12 |
Loans to banks and other financial institutions | ||
II. Cash equivalents | 3,000,000,000.00 |
Including: bond investments maturing within three months | ||
Redemptory Monetary Capital for Sale | 3,000,000,000.00 | |
III. Ending balance of cash and cash equivalents | 150,360,188,952.47 | 152,378,738,982.83 |
Including: cash and cash equivalents restricted for use by the parent company or subsidiaries within the group |
(5) Items with restricted use but still presented as cash and cash equivalents
□Applicable √N/A
(6) Cash and cash equivalents not belonging to cash and cash equivalents
√Applicable □N/A
Item | Amount in the current period | Amount in the prior period | Reason |
Statutory deposit reserve | 5,991,813,679.87 | 6,418,765,887.71 | Restricted in use |
Total | 5,991,813,679.87 | 6,418,765,887.71 |
58. Notes to items of statement of changes in owners’ equity
Description of project names of "others" adjusted in terms of the ending balance in the previous year andthe adjusted amount:
□Applicable √N/A
59. Foreign currency monetary items
(1) Foreign currency monetary items
√Applicable □N/A
Monetary Unit: RMB
Item | Balance in foreign currency as at the end of the year | Rate of translation | Balance in RMB converted at the end of the period Balance |
Cash and cash equivalents | - | - | |
Including: USD | |||
EUR | 3,443,197.68 | 7.8592 | 27,060,779.21 |
HKD |
(2)Description of overseas operating entities, including for important overseas operating entities,
should disclose their major overseas business locations, bookkeeping base currency andselection basis, and the reasons for the change in the functional currency
√Applicable □N/A
The registration place of Kweichow Moutai Paris Trading Co., Ltd., a wholly-owned subsidiary of theCompany, is Paris, France, and its functional currency is Euro.
60. Leases
(1) Acting as the lessee
√Applicable □N/A
Variable lease payment not included in the lease liabilities for measurement
□Applicable √N/A
Rental expenses for short-term leases and leases of low-value assets subject to simplified treatment
√Applicable □N/A
RMB 31,990,126.58
Leaseback and judgment basis
□Applicable √N/A
Total cash outflows relevant to leases 154,949,164.53 (Unit: Yuan Currency: RMB)
(2) Acting as the lessor
Operating lease of the Company acting as the lessor
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Leasehold income | Including: Income from variable lease payment not included in lease collections |
Commercial housing at Guiyang Zuanshi Plaza | 55,045.87 | |
Rooms 307-308, 3/F, No. 8 Sijiqing Road, Haidian District, Beijing | 201,834.86 | |
Nan’ao Visitor Center in Maotai Town | 371,359.82 | |
23rd floor, Unit 1, Building A, Moutai International Business Center, High-tech Zone, Guiyang City | 234,564.22 | |
Total | 862,804.77 |
(3) Recognition of profit or loss from sales of financing lease as the producer or distributor
□Applicable √N/A
VIII. Breakdown by nature
(1) Presentation by nature
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Labor cost | 175,587,021.98 | 158,666,649.70 |
Direct expenses invested | 171,763,316.33 | 118,890,701.12 |
Depreciation costs and long-term deferred expenses | 84,708,560.59 | 32,137,066.71 |
Expenses on the research and development entrusted to the external | 151,719,367.21 | 206,954,999.10 |
Other expenses | 37,729,269.76 | 42,320,810.13 |
Total | 621,507,535.87 | 558,970,226.76 |
Including: research and development expenses | 477,957,725.95 | 368,433,594.16 |
Capitalized research and development expenses | 143,549,809.92 | 190,536,632.60 |
(2) Development expenses qualified for capitalization
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Beginning Balance | Increase in the current period | Decrease in the current period | Ending Balance | ||
Internal R&D expenses | Others | Recognized as intangible assets | Transferred in current profit or loss | |||
Research on integrated technology system of wine storage safety and fire protection based on 5G and Internet of Things | 252,837.57 | 21,142,507.26 | 21,395,344.83 | |||
Research and development of digital marketing system based on blockchain, mobile Internet and Saas layout model | 107,598,717.37 | 43,998,563.42 | 68,774,503.36 | 82,822,777.43 | ||
Research and development of warehousing and logistics technology system based on industrial Internet | 34,675,656.62 | 12,620,727.05 | 47,296,383.67 | |||
Research on the collaborative digital technology system for procurement and supply | 5,611,813.02 | 13,448,466.06 | 19,060,279.08 | |||
Research on big data technology system of Moutai | 9,033,253.07 | 13,440,111.75 | 22,473,364.82 | |||
Research and development of the whole industrial chain circulation traceability technology system based on the industrial Internet and blockchain | 23,329,010.76 | 12,794,706.65 | 36,123,717.41 | |||
Research on machine learning technology system of Moutai winemaking technology | 10,035,344.19 | 26,104,727.73 | 36,140,071.92 | |||
Total | 190,536,632.60 | 143,549,809.92 | 116,070,887.03 | 218,015,555.49 |
Significant capitalization research and development
√Applicable □N/A
Item | Research and development progress | Estimated time of completion | Estimated way of generating the economic benefit | Beginning time-point for capitalization | Detailed basis |
Research and development of digital marketing system based on blockchain, mobile Internet and Saas layout model | 95% | April 2024 | I Moutai, as the digital marketing platform of Moutai, generates economic benefits by providing the trading platform to settled merchants for sales of products. | March 2022 | The trial operation of i Moutai has been officially launched. |
Provision for impairment of development expenses
□Applicable √N/A
(3) Important outsourcing ongoing research projects
□Applicable √N/A
IX. Changes in the scope of consolidation
1. Business combination not under common control
□Applicable √N/A
2. Business combination under common control
□Applicable √N/A
3. Counter purchase
□Applicable √N/A
4. Disposal of subsidiaries
Whether the transaction or matter where the Company lost the control over subsidiaries existed during the current period
□Applicable √N/A
5. Change of the scope of consolidation due to other reasons
Description of changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries and liquidation of subsidiaries):
√Applicable □N/A
According to the announcement on the resolutions made at the third Board of Directors in 2023 issued by the Company via Shanghai Stock Exchange on April 26,2023, the Company's holding subsidiary Guojiu Moutai Customized Marketing (Guizhou) Co., Ltd. (hereinafter referred to as "Customized Marketing Company")decided to go through the formalities for liquidation and cancellation, as agreed by Customized Marketing Company and its shareholders and adopted upon deliberationat the first general meeting of shareholders of Customized Marketing Company in 2022. On December 29, 2023, Customized Marketing Company had performed allliquidation procedures according to law, for which Baker Tilly China Certified Public Accountants LLP had issued the liquidation audit report, and obtained the Noticeon Approving the Cancellation Registration issued by Guiyang Administration for Industry and Commerce; thus, such company should no longer be included in thescope of consolidated statements, which has no significant impact on the overall business development and normal operation of the Company.
6. Others
□Applicable √N/A
X. Equity in other entities
1. Equity in subsidiaries
(1) Structure of the enterprise group
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Subsidiary Name | Principal place of business | Registered capital | Registration place | Nature of business | Shareholding ratio (%) | Acquisition method | |
Direct | Indirect | ||||||
Guizhou Moutai Chiew Import and Export Co., Ltd. | 8,000,000.00 | Guiyang, Guizhou | 70 | Established by investment | |||
Kweichow Moutai Sales Co., Ltd. | 10,000,000.00 | Renhuai, Guizhou | 95 | Established by investment | |||
Kweichow Moutai Group Finance Co., Ltd. | 2,500,000,000.00 | Renhuai, Guizhou | 51 | Established by investment | |||
Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | 200,000,000.00 | Renhuai, Guizhou | 100 | Established by investment | |||
Beijing Friendship Messenger Trading Co., Ltd. | 30,000,000.00 | Beijing | 70 | Established by investment | |||
Kweichow Moutai Paris Trading Co., Ltd. | 80,728,429.80 | Paris, France | 100 | Established by investment | |||
Guizhou Laymau Liquor Industry Co., Ltd. | 40,000,000.00 | Guiyang, Guizhou | 43 | Established by investment |
Basis for holding half or less than half of the voting right but controlling the investee or holding morethan half of the voting right but not controlling the investee:
The Company holds 43% equity of Guizhou Laymau Liquor Industry Co., Ltd. It is able to control thecompany substantially for the fact that more than half of the board members of Guizhou Laymau LiquorIndustry Co., Ltd. are from the Company.
Important non-wholly-owned subsidiaries
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Name of subsidiary | Shareholding ratio of non-controlling shareholders Ratio (%) | Profit or loss attributable to non-controlling shareholders in the current period | Dividends declared to be distributed to non-controlling shareholders in the current period | Balance of non-controlling interest as at December 31, 2020 |
Kweichow Moutai Sales Co., Ltd. | 5 | 2,129,814,347.17 | 1,683,650,000.00 | 2,728,586,727.00 |
Notes to the differences between the shareholding ratios of non-controlling shareholder in subsidiariesand the voting ratios:
□Applicable √N/A
Other notes:
□Applicable √N/A
(3) Major financial information of significant non-wholly owned subsidiaries
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Name of subsidiary | Balance at the end of the period | Balance at the beginning of the period | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Kweichow Moutai Sales Co., Ltd. | 8,695,706.31 | 78,493.84 | 8,774,200.15 | 3,303,086.46 | 13,940.23 | 3,317,026.69 | 8,220,420.32 | 82,459.17 | 8,302,879.49 | 3,720,573.89 | 17,460.84 | 3,738,034.73 |
Name of subsidiary | Amount in the current period | Amount in the prior period | ||||||
Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
Kweichow Moutai Sales Co., Ltd. | 12,225,461.71 | 4,259,628.69 | 4,259,628.69 | 3,340,397.96 | 10,360,419.48 | 3,626,157.15 | 3,626,157.15 | 4,893,346.93 |
XI. Government grants
1. Government grants recognized as amount receivable at the end of the reporting period
□Applicable √N/A
Reason for the failure in receiving the government subsidies with the estimated amount at the estimatedtime-point
□Applicable √N/A
2. Liabilities involving with government grants
□Applicable √N/A
3. Government grants included in the current profit or loss
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Amount in the current period | Amount in the prior period |
Income-related government grants | 17,137,523.89 | 13,646,004.55 |
Others | ||
Total | 17,137,523.89 | 13,646,004.55 |
XII. Risks related to financial instruments
1. Risks in financial instruments
√Applicable □N/A
The major financial instruments of the Company include other non-current financial assets, Cash and cashequivalents, etc. These financial instruments are used for the operational financing of the Company. TheCompany has various other financial assets and liabilities directly generated from operations, such asaccounts receivable,other receivables, accounts payable, other payables, etc.
The main risks caused by the financial instruments of the Company include credit risk, liquidity risk,exchange rate risk and interest rate risk.
(1) Credit risk
The financial assets of the Company include Cash and cash equivalents, accounts receivable, otherreceivables, etc. The credit risks of these financial assets result from the counterparty's default, and themaximum risk exposure is equal to the book amount of these instruments.
As the Company only carries out transactions with recognized and reputable third parties, the collateral isnot required. Credit risk is managed in a centrally manner according to customers. The sales of theCompany are carried out in the way of advances from customers, and the credit risk of transactions issmall.
(2) Liquidity risk
Liquidity risk refers to a risk that an enterprise suffers funds shortage in performing the obligations ofsettlement in cash or other financial assets.
The policy of the Company is to ensure that there is sufficient cash for the payment of the matured debts.Each subsidiary is responsible for monitoring its own cash flow forecast. On the basis of summarizing thecash flow forecast of each subsidiary, the financial department of the Company keeps monitoring short-term and long-term capital demand at the group level to ensure that the cash demand will be maintained.
(3) Exchange rate risk
The risk of foreign exchange changes faced by the Company is mainly related to the Company's operatingactivities (when the income and expenditure are settled in a foreign currency different from the Company'sfunctional currency) and its net investments in overseas subsidiaries. The exchange rate risk undertakenby the Company is mainly related to USD and EUR. Except for the settlement of product sales in USDand EUR, other major operating activities of the Company are settled in RMB. Please refer to Note 59.Foreign currency monetary items in Part VII. Notes to the items of the consolidated financial statementsof Section X Financial Statements for the amount of foreign currency monetary items converted into RMB.
(4) Interest rate risk
Interest rate risk refers to the risk of fluctuation in the fair value or future cash flows of financialinstruments due to changes in market interest rate. The risk of changes in market interest rate faced bythe Company is mainly related to the liabilities with floating interest rate. As of December 31, 2023, theCompany had no liabilities subject to floating interest rate.
2. Hedging
(1) The Company conducted hedging activities for risk management
□Applicable √N/A
(2) The Company conducted qualified hedging activities and adopted hedge accounting
□Applicable √N/A
(3) The Company conducted hedging activities for risk management and expected to achieve the purposeof risk management without adopting hedge accounting
□Applicable √N/A
XIII. Disclosure of fair value
1. Fair value of assets and liabilities measured at fair value at the end of the period
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Fair value at the end of the period | |||
Measurement of fair value at level 1 | Measurement of fair value at level 2 | Measurement of fair value at level 3 | Total | |
I. Continuous measurement of fair value | ||||
(I) held-for-trading financial assets | 400,712,059.93 | 4,002,439,902.57 | 4,403,151,962.50 | |
1. Financial assets measured at fair | 400,712,059.93 | 4,002,439,902.57 | 4,403,151,962.50 |
values through profit or loss | ||||
(1) Investment in debt instruments | 400,712,059.93 | 400,712,059.93 | ||
(2) Investment in equity instruments | 4,002,439,902.57 | 4,002,439,902.57 | ||
(3) Derivative financial assets | ||||
2. Financial assets designated to be measured at fair value through profit or loss | ||||
(1) Investment in debt instruments | ||||
(2) Investment in equity instruments | ||||
(II) Other debt instrument investments | ||||
(III) Other equity instrument investments | ||||
(IV) Investment properties | ||||
1. Land use right for lease | ||||
2. Leased constructions | ||||
3. Land use rights held for transfer upon appreciation | ||||
(V) Biological assets | ||||
1. Consumptive biological assets | ||||
2. Productive biological assets | ||||
Total assets with continuous measurement at fair value | 400,712,059.93 | 4,002,439,902.57 | 4,403,151,962.50 | |
(VI) held-for-trading financial liabilities | ||||
1. Financial liabilities measured at fair value through profit or loss | ||||
Including: issued bonds held for trading | ||||
Derivative financial liabilities | ||||
Others |
2. Financial liabilities designated to be measured at fair value through profit or loss | ||||
Total liabilities with continuous measurement at fair value | ||||
II. Non-continuous measurement of fair value | ||||
(1) Assets held for sale | ||||
Total assets with non-continuous measurement at fair value | ||||
Total liabilities with non-continuous measurement at fair value |
2. Basis of determination for market prices of continuous and non-continuous measurements of fairvalues at level 1
√Applicable □N/A
The investment is made in bond fund, and the unadjusted quoted price of such fund in an active marketis available on the measurement date.
3. Qualitative and quantitative information on the valuation techniques and important parametersadopted for continuous and non-continuous measurements of fair values at level 2
□Applicable √N/A
4. Qualitative and quantitative information on the valuation techniques and important parametersadopted for continuous and non-continuous measurements of fair values at level 3
√Applicable □N/A
The level 3 investment in equity instruments measured in fair value held by the Company is shares ofprivate equity investment funds, and the fair value at the end of the period is measured in net assetsmethod.
5. Analysis on continuous measurement project of fair value at level 3, adjustment informationbetween the opening and ending book value and sensitivity of unobservable parameters
□Applicable √N/A
6. The measurement project of fair value on a going concern, the conversion between the variouslevels during the period, the reason for conversion and the policy of determining the conversiontime
□Applicable √N/A
7. Changes in valuation technology and reasons for changes occurred in the current period
□Applicable √N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
√Applicable □N/A
Bonds, interbank deposits and financial assets purchased under resale agreements are measured atamortized cost.
9. Others
□Applicable √N/A
XIV. Related parties and related transactions
1. Parent company of the Company
√Applicable □N/A
Monetary Unit: RMB '0,000 Currency: RMB
Name of parent company | Registration place | Nature of business | Registered capital | Shareholding ratio of the parent company in the Company(%) | Voting right ratio of the parent company in the Company (%) |
China Kweichow Moutai Distillery (Group) Co., Ltd. | Guiyang, Guizhou | 1,000,000 | 54.07 | 54.07 |
2. Information on the Company's subsidiaries
Please refer to Note for the details of the Company's subsidiaries.
√Applicable □N/A
Please refer to Note X. Equity in other entities for details of subsidiaries of the Company
3 Other related parties
√Applicable □N/A
Name of other related party | Relationship with the Company |
Beijing Moutai Trade Co., Ltd. | Wholly-owned subsidiary of the parent company |
ChangLi Moutai Wine Trade Co., Ltd. | Others |
Shanghai Moutai Trading Co., Ltd. | Others |
Guizhou Fuminghang Packaging Co., Ltd. | Others |
Guizhou Hengdao Danlin Agricultural Technology Development Co., Ltd. | Others |
Guizhou Jiuyuan Property Co., Ltd. | Others |
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | Others |
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Chun Marketing Company | Others |
Kweichow Moutai Group Health Industry Co., Ltd. | Others |
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | Others |
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Distillery Group Changli Winery Co., Ltd. | Holding subsidiary of the parent company |
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Others |
Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | Others |
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Holding subsidiary of the parent company |
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | Others |
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Others |
Guizhou Zunyi Moutai Airport Co., Ltd. | Holding subsidiary of the parent company |
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Others |
Guizhou Xinhuaxi Glass Co., Ltd. | Others |
Moutai (Guizhou) Investment Fund Partnership (Limited Partnership) | Holding subsidiary of the parent company |
Moutai (Guizhou) Private Fund Management Co., Ltd. | Holding subsidiary of the parent company |
Shanghai Kweichow Moutai Industrial Co., Ltd. | Wholly-owned subsidiary of the parent company |
Shanghai Rencai Printing Affairs Co., Ltd. | Others |
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | Wholly-owned subsidiary of the parent company |
Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | Others |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company |
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | Others |
Moutai CCB (Guizhou) Investment Fund Management Co., Ltd. | Wholly-owned subsidiary of the parent company |
Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company |
Huagui Life Insurance Co., Ltd. | Holding subsidiary of the parent company |
Guiyang GY Financial Leasing Co., Ltd. | Others |
Bank of Guizhou Co., Ltd. | Others |
Guizhou Zunpeng Liquor Co., Ltd. | Others |
Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. | Others |
Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | Others |
Guizhou Renhuai Renshuai Liquor Co., Ltd. | Others |
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Holding subsidiary of the parent company |
Xunfeng Technology (Guizhou) Co., Ltd. | Others |
CHINA GUIZHOU MOUTAI BREWERY TRADING (H.K.) LIMITED | Wholly-owned subsidiary of the parent company |
Moutai Zhaohua (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | Holding subsidiary of the parent company |
Moutai Jinshi (Guizhou) Industrial Development Fund Partnership (Limited Partnership) | Holding subsidiary of the parent company |
Kweichow Moutai Hospital | Others |
Moutai College | Others |
Guizhou Shuanglong Feitian Supply Chain Management Co., Ltd. | Others |
Other notes:
1. ChangLi Moutai Wine Trade Co., Ltd. is a wholly-owned subsidiary of Kweichow Moutai DistilleryGroup Changli Winery Co., Ltd.;
2. Shanghai Moutai Trading Co., Ltd. is a wholly-owned subsidiary of Shanghai Kweichow MoutaiIndustrial Co., Ltd.;
3. Guizhou Fuminghang Packaging Co., Ltd. is a holding subsidiary of Kweichow Moutai Distillery(Group) Technology Development Co., Ltd.;
4. Guizhou Hengdao Danlin Agricultural Technology Development Co., Ltd. is a holding subsidiary ofKweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd.;
5. Guizhou Jiuyuan Property Co., Ltd. is a holding subsidiary of China Kweichow Moutai Distillery(Group) Cultural Tourism Co., Ltd.;
6. Kweichow Moutai (Group) International Travel Agency Co., Ltd. is a wholly-owned subsidiary ofChina Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd.;
7. Kweichow Moutai Chun Marketing Company is a wholly-owned subsidiary of Kweichow MoutaiDistillery (Group) Technology Development Co., Ltd.;
8. Kweichow Moutai Group Health Industry Co., Ltd. is a holding subsidiary of Kweichow MoutaiDistillery (Group) Health Care Liquor Industry Co., Ltd.;
9. Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. is a wholly-ownedsubsidiary of Kweichow Moutai Distillery (Group) Health Care Liquor Industry Co., Ltd.;
10. Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd.is a wholly-owned subsidiary of Kweichow Moutai Distillery (Group) Real Estate InvestmentDevelopment Co., Ltd.;
11. Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. is a wholly-ownedsubsidiary of Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd.;
12. Kweichow Moutai Ecological Agriculture Sales Co., Ltd. is a wholly-owned subsidiary of KweichowMoutai (Group) Ecological Agriculture Industry Development Co., Ltd.;
13. Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. is a holding subsidiary ofKweichow Moutai Distillery (Group) Logistics Co., Ltd.;
14. Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. is a holding subsidiary of KweichowMoutai Distillery (Group) Technology Development Co., Ltd.;
15. Guizhou Xinhuaxi Glass Co., Ltd. is a holding subsidiary of Kweichow Moutai Distillery (Group)Technology Development Co., Ltd.;
16. Shanghai Rencai Printing Affairs Co., Ltd. is an associate of Kweichow Moutai Distillery (Group)Technology Development Co., Ltd.;
17. Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. is a wholly-owned subsidiary of Guizhou Zunyi Moutai Airport Co., Ltd.;
18. Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z is a holding subsidiary ofKweichow Moutai Distillery (Group) Technology Development Co., Ltd.;
19. Guiyang GY Financial Leasing Co., Ltd. is an associate of the parent company;
20. Bank of Guizhou Co., Ltd. is an associate of the parent company;
21. Guizhou Zunpeng Liquor Co., Ltd. is a holding subsidiary of Guizhou Moutai Brewery (Group)Circular Economy Industrial Investment Development Co., Ltd.;
22. Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. is a wholly-ownedsubsidiary of Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.;
23. Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. is a holding subsidiary ofGuizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd.;
24. Guizhou Renhuai Renshuai Liquor Co., Ltd. is a wholly-owned subsidiary of Kweichow MoutaiDistillery (Group) Health Care Liquor Co., Ltd.;
25. Xunfeng Technology (Guizhou) Co., Ltd. is a holding subsidiary of China Kweichow MoutaiDistillery (Group) Cultural Tourism Co., Ltd.;
26. Kweichow Moutai Hospital is a wholly-owned public institution of the parent company;
27. Moutai College is a wholly-owned public institution of the parent company;
28. Guizhou Shuanglong Feitian Supply Chain Management Co., Ltd. is a wholly-owned subsidiary ofKweichow Moutai Distillery (Group) Logistics Co., Ltd..
4. Related transactions
(1) Related transaction on purchase or sales of goods and rendering or receipt of servicesPurchase of goods/receipt of services
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Related parties | Content of related transaction | Amount in the current period | Transaction limit approved (If applicable) | Whether the transaction limit is exceeded (If applicable) | Amount in the prior period |
China Kweichow Moutai Distillery (Group) Co., Ltd. | Right to use trademarks | 1,805,818,609.89 | 1,639,842,153.56 | ||
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Cargo transportation services | 216,497,975.59 | 176,888,990.77 | ||
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | Purchase of goods | 353,391,541.98 | 261,924,856.26 |
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Purchase of goods | 259,369,377.21 | 186,087,312.72 | ||
Guizhou Moutai Distillery (Group) Circular Economy Industry Investment and Development Co., Ltd. | Purchase of goods | 141,561,000.00 | 130,101,300.00 | ||
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Purchase of goods | 125,734,378.80 | 63,728,794.52 | ||
Guizhou Fuminghang Packaging Co., Ltd. | Purchase of goods | 79,633,744.86 | 88,324,091.21 | ||
Guizhou Xinhuaxi Glass Co., Ltd. | Purchase of goods | 74,837,333.43 | 102,311,289.42 | ||
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Purchase of goods | 50,223,736.00 | |||
Kweichow Moutai Hospital | Purchase of goods | 29,504,681.72 | |||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Purchase of goods | 26,270,887.61 | 159,019.22 | ||
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | Purchase of goods | 2,656,847.80 | |||
ChangLi Moutai Wine Trade Co., Ltd. | Purchase of goods | 2,656,035.41 | |||
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | Purchase of goods | 951,669.03 | 74,203.56 | ||
Shanghai Rencai Printing Affairs Co., Ltd. | Purchase of goods | 106,725.23 | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Purchase of goods | 21,875.33 | |||
Huagui Life Insurance Co., Ltd. | Purchase of insurance | 512,911.13 | 499,610.16 | ||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Comprehensive service fee | 194,415.10 | |||
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Labor services fee | 284,953,843.63 | 229,128,409.82 | ||
Xunfeng Technology (Guizhou) Co., Ltd. | Labor services fee | 108,936,867.84 | |||
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | Labor services fee | 74,332,293.77 | 67,315,342.78 | ||
Kweichow Moutai Hospital | Labor services fee | 62,578,627.93 | |||
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | Labor services fee | 60,334,658.08 | 64,402,800.47 | ||
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | Labor services fee | 40,540,182.49 | 2,684,355.24 | ||
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Labor services fee | 51,569,712.68 | |||
Guizhou Moutai Distillery (Group) Circular Economy Industry Investment and Development Co., Ltd. | Labor services fee | 4,485,361.28 | 1,939,970.05 | ||
Moutai College | Labor services fee | 2,065,849.07 | |||
Guizhou Zunyi Moutai Airport Co., Ltd. | Labor services fee | 610,344.02 | |||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Labor services fee | 136,649.00 | |||
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Labor services fee | 116,120.77 | 25,661.62 | ||
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Labor services fee | 25,429.03 | 25,273,693.09 | ||
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | Labor services fee | 10,000.00 | |||
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Labor services fee | 5,224,867.44 | |||
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Other utilities expenses such as water, electricity and steam charges (purchase) | 43,442.45 | 48,625.95 |
Sales of goods/rendering of services
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Related parties | Content of related transaction | Amount in the current period | Amount in the prior period |
Kweichow Moutai Group Marketing Co., Ltd. | Sales of goods | 5,384,603,095.58 | 5,241,503,023.90 |
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | Sales of goods | 38,081,330.95 | 23,529,334.51 |
CHINA GUIZHOU MOUTAI BREWERY TRADING (H.K.) LIMITED | Sales of goods | 23,478,824.28 | |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Sales of goods | 15,409,493.26 | 2,999,915.04 |
Shanghai Kweichow Moutai Industrial Co., Ltd. | Sales of goods | 13,524,966.35 | 6,435,461.94 |
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | Sales of goods | 12,807,170.94 | |
Guizhou Zunyi Moutai Airport Co., Ltd. | Sales of goods | 8,999,745.12 | |
Beijing Moutai Trade Co., Ltd. | Sales of goods | 6,364,991.14 | 1,568,516.81 |
Xunfeng Technology (Guizhou) Co., Ltd. | Sales of goods | 4,969,911.50 | |
China Kweichow Moutai Distillery (Group) Co., Ltd. | Sales of goods | 686,773.73 | 53,978.23 |
Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | Sales of goods | 466,152.22 | |
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | Labor services fee | 432,178.18 | 239,611.71 |
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | Labor services fee | 258,066.00 | |
China Kweichow Moutai Distillery (Group) Co., Ltd. | Labor services fee | 89,391.24 | |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Labor services fee | 84,696.23 | |
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | Labor services fee | 38,254.72 | |
Kweichow Moutai Group Marketing Co., Ltd. | Labor services fee | 28,516.98 | |
Xunfeng Technology (Guizhou) Co., Ltd. | Labor services fee | 13,913.21 | |
ChangLi Moutai Wine Trade Co., Ltd. | Labor services fee | 2,353.47 | |
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Labor services fee | 86,782.75 | |
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Labor services fee | 571,925.36 | |
China Kweichow Moutai Distillery (Group) Co., Ltd. | Other inflows | 13,925,889.91 |
Notes to purchase or sale of goods, and rendering or receipt of services
□Applicable √N/A
(2) Management on commission/ contract and commissioned management/ sub-contractTable of information on entrusted management and contracting:
□Applicable √N/A
Notes to custody/contracting of related parties
□Applicable √N/A
Table of information on entrusted management and contracting by the Company:
□Applicable √N/A
Notes to related-party management/contracting
□Applicable √N/A
(3) Related-party leases
The Company as the lessor:
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Name of lessee | Type of leased assets | Lease revenue recognized in this period | Lease revenue recognized in previous period |
Kweichow Moutai Group Marketing Co., Ltd. | Buildings and constructions | 371,359.82 | 495,146.47 |
ChangLi Moutai Wine Trade Co., Ltd. | Buildings and constructions | 201,834.86 | |
China Kweichow Moutai Distillery (Group) Co., Ltd. | Buildings and constructions | 234,564.22 | 488,903.16 |
The Company as the lessee:
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Name of the lessor | Type of leased assets | Rental expenses of short-term lease and low-value asset lease subject to simplified treatment (if applicable) | Variable lease payments that are not included in the lease liabilities (if applicable) | Paid rent | Interest expenses on the lease liabilities assumed | Added right-of-use assets | |||||
Amount in the current period | Amount in the prior period | Amount in the current period | Amount in the prior period | Amount in the current period | Amount in the prior period | Amount in the current period | Amount in the prior period | Amount in the current period | Amount in the prior period | ||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Buildings and constructions | 946,786.94 | 864,000.00 | 54,160,209.39 | 864,000.00 | 3,119,974.65 | 4,683,241.02 | ||||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Land use right | 9,046,180.00 | 4,523,090.00 | 2,621,418.97 | 2,677,710.63 | ||||||
China Kweichow Moutai Distillery (Group) Co., Ltd. | Transportation facilities | 21,976,024.64 | 21,976,024.64 | ||||||||
Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | Buildings and constructions | 4,036,110.60 | 1,578,921.60 | 538,973.93 | 245,211.33 | ||||||
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | Buildings and constructions | 1,458,000.00 | 192,522.22 | 5,258,928.89 | |||||||
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Buildings and constructions | 3,582,654.81 | 3,905,093.74 | ||||||||
Beijing Moutai Trade Co., Ltd. | Buildings and constructions | 4,678.90 | 5,100.00 | ||||||||
Guizhou Zunyi Moutai Airport Co., Ltd. | Buildings and constructions | 337,599.08 | 367,983.00 |
Remarks on related-party leases
□Applicable √N/A
(4) Remuneration of key management personnel
□Applicable √N/A
(5) Other related transactions
√Applicable □N/A
A. Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company, conducted deposit,loan, discount and letter of guarantee business with related parties.Absorption of deposits and interbank deposit refers to the balance of deposits of all related parties withKweichow Moutai Group Finance Co., Ltd. and accrued interest; "interest expenses" refer to the depositinterest to be paid by Kweichow Moutai Group Finance Co., Ltd. to related parties; “interest income”refers to the interest charged by Kweichow Moutai Group Finance Co., Ltd. for providing loan businessto related parties according to regulations; disbursement of advances and loans refers to the balance ofthe loan provided by Kweichow Moutai Group Finance Co., Ltd. to related parties. (Monetary Unit:
Yuan Currency: RMB)a. Absorption of deposits and interbank deposit
Related parties | December 31, 2023 |
China Kweichow Moutai Distillery (Group) Co., Ltd. | 3,472,135,014.73 |
Kweichow Moutai Group Marketing Co., Ltd. | 2,328,305,814.53 |
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 1,855,099,519.88 |
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | 497,766,259.78 |
Guizhou Zunpeng Liquor Co., Ltd. | 467,016,595.82 |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 454,242,451.69 |
ChangLi Moutai Wine Trade Co., Ltd. | 319,113,599.89 |
Xunfeng Technology (Guizhou) Co., Ltd. | 251,205,090.43 |
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 235,417,326.01 |
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | 221,696,114.23 |
Guizhou Zunyi Moutai Airport Co., Ltd. | 213,942,105.61 |
Kweichow Moutai Chun Marketing Company | 194,045,165.03 |
Guizhou Renhuai Renshuai Liquor Co., Ltd. | 157,974,945.23 |
Beijing Moutai Trade Co., Ltd. | 137,108,430.79 |
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | 126,794,125.52 |
Kweichow Moutai Distillery Group Changli Winery Co., Ltd. | 125,766,163.28 |
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 119,132,632.79 |
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 115,136,862.55 |
Shanghai Kweichow Moutai Industrial Co., Ltd. | 97,825,220.90 |
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 95,684,837.10 |
Shanghai Moutai Trading Co., Ltd. | 84,541,299.91 |
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 81,095,162.88 |
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | 78,419,300.97 |
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | 62,185,871.67 |
Guizhou Shuanglong Feitian Supply Chain Management Co., Ltd. | 47,441,584.85 |
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | 43,861,618.42 |
Kweichow Moutai Hospital | 42,262,426.90 |
Guizhou Jiuyuan Property Co., Ltd. | 28,579,282.49 |
Guizhou Fuminghang Packaging Co., Ltd. | 24,196,816.45 |
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | 23,193,926.64 |
Kweichow Moutai Logistics Park Grain Collection and Storage Co., | 13,253,329.50 |
Ltd. | |
Guizhou Xinhuaxi Glass Co., Ltd. | 9,829,813.16 |
Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. | 6,200,932.66 |
Kweichow Moutai Group Health Industry Co., Ltd. | 3,041,438.50 |
Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. | 628,850.59 |
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | 203,644.78 |
Moutai College | 138,956.82 |
Moutai CCB (Guizhou) Investment Fund Management Co., Ltd. | 5,410.91 |
Moutai (Guizhou) Private Fund Management Co., Ltd. | 4,050.21 |
Moutai (Guizhou) Investment Fund Partnership (Limited Partnership) | 850.03 |
Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | 37.75 |
Guizhou Hengdao Danlin Agricultural Technology Development Co., Ltd. | 28.07 |
Total | 12,034,492,909.95 |
b. Interest expenses
Related parties | Current reporting period |
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 31,339,938.02 |
China Kweichow Moutai Distillery (Group) Co., Ltd. | 29,708,003.52 |
Kweichow Moutai Group Marketing Co., Ltd. | 21,399,365.25 |
Guizhou Zunpeng Liquor Co., Ltd. | 4,017,175.57 |
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 3,189,584.79 |
Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 3,111,083.63 |
ChangLi Moutai Wine Trade Co., Ltd. | 2,458,664.23 |
Kweichow Moutai Chun Marketing Company | 2,425,584.26 |
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 2,052,349.58 |
Guizhou Zunyi Moutai Airport Co., Ltd. | 1,970,595.88 |
Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | 1,636,584.81 |
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 1,619,805.58 |
Xunfeng Technology (Guizhou) Co., Ltd. | 1,205,090.43 |
Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | 1,036,722.16 |
Shanghai Kweichow Moutai Industrial Co., Ltd. | 934,193.97 |
Kweichow Moutai Distillery Group Changli Winery Co., Ltd. | 840,830.43 |
Beijing Moutai Trade Co., Ltd. | 600,646.94 |
Shanghai Moutai Trading Co., Ltd. | 535,645.74 |
Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 466,072.54 |
Guizhou Jiuyuan Property Co., Ltd. | 446,008.34 |
Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. | 391,570.92 |
Moutai College | 321,413.03 |
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | 278,820.47 |
Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | 200,840.35 |
Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | 198,537.18 |
Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 194,364.37 |
Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., | 180,636.29 |
Ltd. | |
Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | 151,598.58 |
Guizhou Fuminghang Packaging Co., Ltd. | 139,139.95 |
Guizhou Shuanglong Feitian Supply Chain Management Co., Ltd. | 119,459.65 |
Guizhou Renhuai Renshuai Liquor Co., Ltd. | 87,955.56 |
Kweichow Moutai (Group) International Travel Agency Co., Ltd. | 68,154.66 |
Guizhou Xinhuaxi Glass Co., Ltd. | 36,615.62 |
Kweichow Moutai Hospital | 75,730.99 |
Kweichow Moutai Group Health Industry Co., Ltd. | 27,025.67 |
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 26,650.62 |
Guizhou Moutai Winery (Group) Guiyang Business Co., Ltd. | 7,050.74 |
Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | 570.90 |
Moutai CCB (Guizhou) Investment Fund Management Co., Ltd. | 23.00 |
Moutai (Guizhou) Private Fund Management Co., Ltd. | 17.24 |
Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 4.46 |
Moutai (Guizhou) Investment Fund Partnership (Limited Partnership) | 3.62 |
Guizhou Hengdao Danlin Agricultural Technology Development Co., Ltd. | 0.12 |
Total | 113,500,129.66 |
c. Loans and payments
Item | Related parties | December 31, 2023 |
Credit loans | Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 499,963,530.81 |
Pledge loans | Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 58,040,000.00 |
Total | 558,003,530.81 | |
Less: Provision for impairment of loans | 12,158,085.37 | |
Book value of loans and advances to customers | 545,845,445.44 |
d. Interest income
Item | Related parties | Current reporting period |
Interest income on loans | China Kweichow Moutai Distillery (Group) Co., Ltd. | 60,502,489.52 |
Interest income on loans | Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 2,732,535.18 |
Interest income on loans | Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 2,019,139.63 |
Total | 65,254,164.33 |
e. Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company, purchased thebonds issued by Guiyang GY Financial Leasing Co., Ltd. from the open market, with the total price ofRMB 20.00 million, for which the interest income recognized in the current period amounted to RMB706,800. As of the end of the period, the Debt investment and interest receivable had been collected infull.
B. The Company's ending balance of deposits with Guizhou Bank amounted to RMB 24.1 billion, and theinterest income and investment income in 2023 respectively amounted to RMB 653.43 million and RMB
4.08 million. Kweichow Moutai Group Finance Co., Ltd., a holding subsidiary of the Company, purchasedthe bonds issued by Bank of Guizhou Co., Ltd. from the open market, with the total price of RMB 500million. The interest income recognized in the current period amounted to RMB 16.23 million. As of the
end of the period, the balance of the provision for impairment of the debt investments was RMB 103,700,the balance of accrued interest was RMB 6.3 million and the book value was RMB 506.2 million.Kweichow Moutai Sales Co., Ltd., a holding subsidiary of the Company, entrusted the Bank of Guizhouto collect and pay the third-party payment channel transaction fee of the "i Moutai" digital marketingplatform totaling RMB 73.37 million.
5. Unsettlement projects of related parties of receivables and payables
(1) Receivables
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Related parties | Balance at the end of the period | Balance at the beginning of the period | ||
Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
Accounts receivable | Xunfeng Technology (Guizhou) Co., Ltd. | 60,373,410.41 | |||
Other receivables | Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | 304,766.00 | 100,000.00 | ||
Other receivables | Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd. | 145,591.66 | |||
Other receivables | ChangLi Moutai Wine Trade Co., Ltd. | 100,000.00 | |||
Other receivables | Kweichow Moutai Ecological Agriculture Sales Co., Ltd. | 50,000.00 | |||
Other receivables | Kweichow Moutai Group Marketing Co., Ltd. | 30,228.00 | |||
Other receivables | Xunfeng Technology (Guizhou) Co., Ltd. | 14,748.00 | |||
Other receivables | China Kweichow Moutai Distillery (Group) Co., Ltd. | 88,817.40 | |||
Prepayments | China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 10,495,000.00 |
Remarks:
1. The accounts receivable of Xunfeng Technology (Guizhou) Co., Ltd. was due to the sales of KweichowMoutai Sales Co., Ltd., a holding company of the Company, via Xunfeng platform where the systemadopts the T+7 approach for the settlement of payments for goods;
2. Other receivables of Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate InvestmentDevelopment Co., Ltd. refer to the rental deposit paid by Beijing Friendship Messenger Trading Co., Ltd.and Guizhou Moutai Chiew Import and Export Co., Ltd., two holding subsidiaries of the Company;
3. Other receivables of Kweichow Moutai Distillery (Group) Health Care Wine Industry Sales Co., Ltd.refer to the contract performance bond of Beijing Friendship Messenger Trading Co., Ltd., a holdingsubsidiary of the Company;
4. Other receivables of ChangLi Moutai Wine Trade Co., Ltd. refer to the contract performance bond ofBeijing Friendship Messenger Trading Co., Ltd., a holding subsidiary of the Company;
5. Other receivables of Kweichow Moutai Ecological Agriculture Sales Co., Ltd. refer to the contractperformance bond of Beijing Friendship Messenger Trading Co., Ltd., a holding subsidiary of theCompany;
6. Other receivables of Kweichow Moutai Group Marketing Co., Ltd. refer the to catering receivables ofHeyixing Liquor Branch of Kweichow Moutai Co., Ltd.;
7. Other receivables of Xunfeng Technology (Guizhou) Co., Ltd. refer to the catering receivables ofHeyixing Liquor Branch of Kweichow Moutai Co., Ltd.;
8. Prepayments of China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. referprepayments for goods of Beijing Friendship Messenger Trading Co., Ltd., a holding subsidiary of theCompany.
(2) Payables
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Related parties | Book balance as at the end of the period | Book balance at the beginning of the period |
Accounts payable | Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 93,477,338.38 | 59,076,608.00 |
Accounts payable | Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 38,537,957.75 | 246,490,916.16 |
Accounts payable | Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | 36,158,486.00 | |
Accounts payable | Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | 32,135,809.02 | |
Accounts payable | Kweichow Moutai Hospital | 22,000,000.00 | |
Accounts payable | Xunfeng Technology (Guizhou) Co., Ltd. | 16,891,424.43 | |
Accounts payable | Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | 12,600,759.42 | 3,069,258.03 |
Accounts payable | Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 14,356,089.19 | |
Accounts payable | Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 12,461,943.12 | 47,212,974.54 |
Accounts payable | China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 970,000.00 | |
Accounts payable | Guizhou Xinhuaxi Glass Co., Ltd. | 249,928.56 | |
Accounts payable | Kweichow Moutai (Group) International Travel Agency Co., Ltd. | 162,000.00 | |
Accounts payable | Kweichow Moutai Distillery Group Changli Winery Co., Ltd. | 80,661.48 | |
Accounts payable | Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 986,180.26 | |
Accounts payable | Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 8,776,190.66 | |
Other payables | China Kweichow Moutai Distillery (Group) Co., Ltd. | 1,039,244,283.75 | 907,115,478.82 |
Other payables | Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 68,320,120.45 | 57,704,428.54 |
Other payables | Guizhou Moutai Brewery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 14,356,100.00 | 13,710,130.00 |
Other payables | China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 11,202,943.84 | 124,590.00 |
Other payables | Kweichow Moutai Distillery (Group) Hotel Management Co., Ltd. | 4,971,354.70 | 4,416,637.72 |
Other payables | Kweichow Moutai Distillery (Group) Hongyingzi Agriculture Science and Technology Development Co., Ltd. | 3,090,812.50 | |
Other payables | Kweichow Moutai Distillery (Group) Health Care Liquor Co., Ltd. | 1,892,512.00 | 591,695.00 |
Other payables | Moutai College | 2,189,800.00 | |
Other payables | Kweichow Moutai Logistics Park Grain Collection and Storage Co., Ltd. | 1,586,000.00 | 1,500,000.00 |
Other payables | Xunfeng Technology (Guizhou) Co., Ltd. | 1,094,170.00 | |
Other payables | Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 1,015,643.50 | 1,015,643.50 |
Other payables | Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products Co., Ltd. | 1,000,000.00 | |
Other payables | Chinese-Foreign Venture Dragon and Lion Cap Co., Ltd. Zhuhai S.E.Z | 1,000,000.00 | 1,000,000.00 |
Other payables | Guizhou Xinhuaxi Glass Co., Ltd. | 1,000,000.00 | 1,000,000.00 |
Other payables | Guizhou Fuminghang Packaging Co., Ltd. | 1,000,000.00 | 1,000,000.00 |
Other payables | Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 587,875.33 | 71,137,207.29 |
Other payables | Kweichow Moutai Hospital | 266,719.36 | |
Other payables | Kweichow Moutai Group Marketing Co., Ltd. | 260,000.00 | 260,000.00 |
Other payables | Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | 200,000.00 | |
Other payables | Kweichow Moutai (Group) International Travel Agency Co., Ltd. | 79,997.00 | |
Other payables | Shanghai Kweichow Moutai Industrial Co., Ltd. | 50,000.00 | 50,000.00 |
Other payables | Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | 8,500.00 | 23,357.59 |
Other payables | Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 50,000.00 | |
Other payables | Shanghai Rencai Printing Affairs Co., Ltd. | 1,400,000.00 | |
Other payables | Huagui Life Insurance Co., Ltd. | 37,375.00 | |
Contract liabilities | Kweichow Moutai Group Marketing Co., Ltd. | 319,645,832.74 | 75,925,710.62 |
Contract liabilities | Guizhou Zunyi Moutai Airport Co., Ltd. | 3,389,904.00 | |
Contract liabilities | China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 674,318.87 | |
Contract liabilities | Kweichow Moutai Distillery (Group) Sanya Investment Industrial Co., Ltd. | 263,546.34 | |
Contract liabilities | Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 5,306.19 | 5,306.19 |
Contract liabilities | Shanghai Kweichow Moutai Industrial Co., Ltd. | 390,966.37 | |
Contract liabilities | Beijing Moutai Trade Co., Ltd. | 1,292,962.83 | |
Contract liabilities | Guizhou Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 10,036.28 |
Lease liabilities (including the part maturing within one year) | China Kweichow Moutai Distillery (Group) Co., Ltd. | 165,504,814.99 | 248,946,125.77 |
Lease liabilities (including the part maturing within one year) | Kweichow Moutai Distillery (Group) Guiyang Gaoxin Real Estate Investment Development Co., Ltd. | 4,652,262.12 | 5,953,575.42 |
(3) Others
□Applicable √N/A
6. Related-party commitments
□Applicable √N/A
7. Others
□Applicable √N/A
XV. Post balance sheet events
1. Significant non-adjustment matters
□Applicable √N/A
2. Profit distribution
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Profit or dividend to be distributed | 38,786,363,272.80 |
3. Sales return
□Applicable √N/A
4. Notes to other post balance sheet events
□Applicable √N/A
XIV. Notes to the main items of the Company's financial statements
1. Accounts receivable
(1) Disclosure by aging
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Aging | Book balance as at the end of the period | Book balance at the beginning of the period |
Within 1 year | 17,178,545,925.65 | 20,670,923,010.62 |
Sub-total within 1 year | 17,178,545,925.65 | 20,670,923,010.62 |
Total | 17,178,545,925.65 | 20,670,923,010.62 |
(2) Disclosure by category based on the method for provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Balance at the end of the period | Balance at the beginning of the period | ||||||||
Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
Amount | Ratio (%) | Amount | Proportion of provision (%) | Amount | Ratio (%) | Amount | Proportion of provision (%) |
Provision for bad debts accrued on an individual basis | ||||||||||
Bad debt provision assessed by portfolio | 17,178,545,925.65 | 100 | 17,178,545,925.65 | 20,670,923,010.62 | 100 | 20,670,923,010.62 | ||||
Including: | ||||||||||
Portfolio of related parties within the scope of consolidation | 17,178,545,925.65 | 100 | 17,178,545,925.65 | 20,670,923,010.62 | 100 | 20,670,923,010.62 | ||||
Total | 17,178,545,925.65 | / | / | 17,178,545,925.65 | 20,670,923,010.62 | / | / | 20,670,923,010.62 |
Bad debt provision assessed by portfolio:
□Applicable √N/A
(3) Top 5 accounts receivable based on debtors and corresponding contract assets
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Entity name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balances of accounts receivable and contract assets | Proportion in the total of balances of accounts receivable and contract assets at the end of the period(%) | Ending balance of provision for bad debts |
Kweichow Moutai Sales Co., Ltd. | 15,010,518,325.15 | 15,010,518,325.15 | 87.38 | ||
Guizhou Moutai Chiew Import and Export Co., Ltd. | 1,268,507,519.00 | 1,268,507,519.00 | 7.38 | ||
Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | 899,520,081.50 | 899,520,081.50 | 5.24 | ||
Total | 17,178,545,925.65 | 17,178,545,925.65 | 100.00 |
2. Other receivables
Presentation of items
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Other receivables | 15,880,057.16 | 15,092,761.22 |
Total | 15,880,057.16 | 15,092,761.22 |
Other receivables
(1) Disclosure by aging
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Aging | Book balance at the end of the period | Book balance at the beginning of the period |
Within 1 year | 15,507,393.04 | 14,654,823.06 |
Sub-total within 1 year | 15,507,393.04 | 14,654,823.06 |
1 - 2 years | 492,822.00 | |
2 - 3 years | 492,822.00 | |
3 - 4 years | 7,313.00 | |
4 - 5 years | 7,313.00 | |
Over 5 years | 37,951.22 | 37,951.22 |
Total | 16,045,479.26 | 15,192,909.28 |
(2) Classification by nature of payment
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Nature of payment | Book balance as at the end of the period | Book balance at the beginning of the period |
Petty cash | 3,647,152.00 | 5,471,487.70 |
Current payment | 12,398,327.26 | 9,721,421.58 |
Total | 16,045,479.26 | 15,192,909.28 |
(3) Details for making provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Provision for bad debts | Stage I | Stage II | Stage III | Total |
12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
Balance as at January 1, 2023 | 5,500.02 | 94,648.04 | 100,148.06 | |
Balance as at January 1, 2023 in the current period | ||||
- Transfer to Stage II | -5,500.02 | 5,500.02 | ||
- Transfer to Stage III | ||||
- Reversal from Stage II | ||||
- Reversal from Stage I | ||||
Provision in the current period | 8,482.86 | 68,556.96 | 77,039.82 | |
Reversal in the current period | 465.78 | 11,300.00 | 11,765.78 | |
Charge-off in the current period | ||||
Write-off in the current period | ||||
Other changes | ||||
Balance as at December 31, 2023 | 8,017.08 | 157,405.02 | 165,422.10 |
Notes to the obvious changes in the book balance of other receivables with changes in provision for lossesin the current period:
□Applicable √N/A
(4) Provision for bad debts
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Type | Balance at the beginning of the period | Change in this period | Balance at the end of the period | |||
Provision | Recovery or reversal | Write-off or charge-off | Other changes | |||
Bad debt provision assessed by portfolio | 100,148.06 | 77,039.82 | 11,765.78 | 165,422.10 | ||
Total | 100,148.06 | 77,039.82 | 11,765.78 | 165,422.10 |
Reversal or recovery of significant amount of provision for bad debts in the current period:
□Applicable √N/A
(5) Other receivables write off in the current period
□Applicable √N/A
(6) Top 5 of other receivables presented by debtor
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Entity name | Balance at the end of the period | Proportion in the total ending balance of other receivables (%) | Nature of payment | Aging | Provision for bad debts Balance at the end of the period |
China Railway 22nd Bureau Group Co., Ltd. | 2,662,173.76 | 16.59 | Current payment | Within 1 year | |
Luo Meng | 596,879.35 | 3.72 | Petty cash | Within 1 year | |
Luo Nanbo | 531,055.00 | 3.31 | Petty cash | Within 1 year | |
Wu Lanlan | 499,620.00 | 3.12 | Petty cash | Within 1 year | |
Jiao Yuanquan | 432,053.99 | 2.69 | Petty cash | Within 1 year | |
Total | 4,721,782.10 | 29.43 | / | / |
A. Receivables of China Railway 22nd Bureau Group Co., Ltd. refer to the water and electricity chargesat Xinzhai and Dadi production areas paid by Heyixing Liquor Branch of Kweichow Moutai Co., Ltd.on the Company's behalf.B. Luo Meng is an employee of the Company, and the loans are for litigation and market rightsprotection.C. Luo Nanbo is an employee of the Company, and the loans are for litigation and market rightsprotection.D. Wu Lanlan is an employee of the Company, and the money is borrowed for applying for license forthe vehicle of the Company.
E. Jiao Yuanquan is an employee of the Company, and the loans are for litigation and market rightsprotection.
(7) Items presented as other receivables on account of the collective funds management
□Applicable √N/A
3. Long-term equity investments
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Balance at the end of the period | Balance at the beginning of the period | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment to subsidiaries | 1,610,535,587.55 | 1,610,535,587.55 | 1,624,535,587.55 | 1,624,535,587.55 | ||
Total | 1,610,535,587.55 | 1,610,535,587.55 | 1,624,535,587.55 | 1,624,535,587.55 |
(1) Investments in subsidiaries
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Investee | Balance at the beginning of the period | Increase in current period | Decrease in current period | Balance at the end of the period | Impairment provision accrued at the current period | Balance of impairment provision at the end of period |
Guizhou Moutai Chiew Import and Export Co., Ltd. | 5,600,000.00 | 5,600,000.00 | ||||
Kweichow Moutai Sales Co., Ltd. | 9,500,000.00 | 9,500,000.00 | ||||
Kweichow Moutai Group Finance Co., Ltd. | 1,275,000,000.00 | 1,275,000,000.00 | ||||
Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||
Beijing Friendship Messenger Trading Co., Ltd. | 22,507,157.75 | 22,507,157.75 | ||||
Kweichow Moutai Paris Trading Co., Ltd. | 80,728,429.80 | 80,728,429.80 | ||||
Guizhou Laymau Liquor Industry Co., Ltd. | 17,200,000.00 | 17,200,000.00 | ||||
Guojiu Moutai Customized Marketing (Guizhou) Co., Ltd. | 14,000,000.00 | 14,000,000.00 | ||||
Total | 1,624,535,587.55 | 14,000,000.00 | 1,610,535,587.55 |
4. Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period | ||
Income | Cost | Income | Cost | |
Primary business | 80,921,734,260.74 | 11,826,851,903.19 | 70,970,544,362.02 | 10,230,567,077.09 |
Other business | 493,836,527.85 | 245,307,010.86 | 331,252,514.91 | 189,675,060.37 |
Total | 81,415,570,788.59 | 12,072,158,914.05 | 71,301,796,876.93 | 10,420,242,137.46 |
Remark: Other business revenue and costs are mainly the revenue and costs of hotel business and icecream business.
(2) Breakdown of operating revenue and operating costs
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Contract classification | Total | |
Operating revenue | Operating costs | |
By product: | ||
Moutai | 72,693,957,661.74 | 7,724,172,917.89 |
Series liquor | 8,227,776,599.00 | 4,102,678,985.30 |
Other business | 493,836,527.85 | 245,307,010.86 |
By regional segment: | ||
Domestic | 77,058,124,880.97 | 11,732,466,868.19 |
Overseas | 4,357,445,907.62 | 339,692,045.86 |
Classification by marketing channel | ||
Wholesale agency | 81,287,971,876.26 | 11,956,609,192.19 |
Direct selling | 127,598,912.33 | 115,549,721.86 |
Total | 81,415,570,788.59 | 12,072,158,914.05 |
(3) Description of performance obligation
√Applicable □N/A
The revenue is confirmed when the customer acquires the control of the goods agreed in the contract andthe Company fulfills the contract performance obligation.
(4) Description of allocation to remaining performance obligations
√Applicable □N/A
At the end of the reporting period, the revenue corresponding to the performance obligations undersigned contracts that have not fulfilled or not completed yet amounted to RMB 21,950,467.31, in which:
RMB 21,950,467.31 will be expected to be recognized in 2024 as revenue.
(5) Significant contract change or price adjustment of major transaction
□Applicable √N/A
5. Investment income
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount in the current period | Amount in the prior period |
Income from long-term equity investments under the cost method | 35,237,204,827.62 | 47,596,490,707.35 |
Investment income from disposal of long-term equity investments | 123,031,169.16 | |
Interest income from certificates of deposits during the holding period | 4,078,666.67 | 63,840,000.00 |
Total | 35,364,314,663.45 | 47,660,330,707.35 |
XVII. Supplementary information
1. Details of current non-recurring profit and loss
√Applicable □N/A
Monetary Unit: Yuan Currency: RMB
Item | Amount | Description |
Profit or loss of disposal of non-current assets (including the offset amount where provision for asset impairment has been made) | 1,152,516.17 | |
Government grants included in the current profit or loss (except for government grants closely related with the normal business of the Company, obtained based on the established standard in accordance with national policies and provisions and having the continuous influence on the profits or losses of the Company) | 17,137,523.89 | |
The profit or loss from changes in the fair value of financial assets and financial liabilities held by non-financial enterprises and the profit or loss from the disposal of financial assets and finanical liabilities, except the effective hedging relevant to the Company’s normal business | 2,439,902.57 | |
Other non-operating revenues and expenses except for the above-mentioned items | -47,733,771.71 | |
Other items of profit or loss subject to the definition of non-recurring profit or loss | 4,710,466.67 | |
Less: Influenced amount of income tax | -5,573,340.60 | |
Adjustment of non-controlling equity (after tax) | 1,772,852.96 | |
Total | -18,492,874.77 |
Where the Company recognizes the items not listed in the Explanatory Notice on Information Disclosureof Companies that Issue Securities Publicly No.1 - Non-recurring Profit or Loss as the non-recurring profitor loss items with the significant amount, or defines the non-recurring profit and loss items listed inExplanatory Notice on Information Disclosure of Companies that Issue Securities Publicly No.1 - Non-recurring Profit or Loss as recurring profit or loss items, reasons shall be given.
□Applicable √N/A
2. Return on net assets and earnings per share
√Applicable □N/A
Profit in the reporting period | Weighted Average return on net assets (%) | Earnings per share | |
Basic earnings per share | Diluted earnings per share | ||
Net profit attributable to ordinary shareholders of the company | 34.19 | 59.49 | 59.49 |
Net profit attributable to ordinary shareholders of the company after deducting non-recurring profit and loss | 34.20 | 59.51 | 59.51 |
3. Differences of accounting data under domestic and foreign accounting standards
□Applicable √N/A
Chairman: Ding XiongjunDate of approval and submission by the Board: April 2, 2024
Revision information
□Applicable √N/A