Environmental, Social and
Luzhou Laojiao Co., Ltd.
2022
Governance Report
About the Report
Company proleThe 2022 Environmental, Social and Governance Report of Luzhou Laojiao Co., Ltd. is the 16th annualEnvironmental, Social and Governance Report released by Luzhou Laojiao Co., Ltd. The Report is preparedfor truthfully, accurately and completely disclosing to stakeholders the efforts and achievements made bythe Company in implementing high-quality sustainable development.Report scopeThe disclosure scope of the Report covers Luzhou Laojiao Co., Ltd. and its subsidiaries. The disclosureperiod of the Report is from January 1, 2022 to December 31, 2022. For the sake of enhancing thecomparability and completeness of the Report, some information contents are appropriately traced backto previous years or beyond the above range. All data in the Report are from relevant data statistics andexternal documents of Luzhou Laojiao Co., Ltd. During the reporting period, nancial data is in RMB. Incase of any inconsistency with the nancial report, the nancial report shall prevail.Reference description
For ease of expression and reading, “Luzhou Laojiao Co., Ltd.” is referred to as “Luzhou Laojiao”,“Company”, “We”, etc. in the Report. Besides, other reference descriptions in the Report are as follows:
· “Brewing Company” refers to Luzhou Laojiao Niangjiu Co., Ltd.· “Huangyi” and “Huangyi Brewing Ecological Park” refer to the Company’s park located in Huangyi Town,Jiangyang District, Luzhou City· “Luohan” and “Luohan Brewing Ecological Park” refer to the Company’s park located in Luohan Town,Longmatan District, Luzhou City· “Xiaoshi Brewing Base” refers to the Company’s production base located in Xiaoshi Street, LongmatanDistrict, Luzhou CityReference standards
The Report is based on the industry background, highlighting the characteristics of the enterprise andstriving to comply with the sustainable development information disclosure-related standards of industrypeers. The key reference standards for report preparation include:
· Sustainability Reporting Guidelines (GRI standards) by Global Reporting Initiative· Guiding Opinions on State-owned Enterprises to Better Fulll their Social Responsibilities by State-ownedAssets Supervision and Administration Commission of the State Council· Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR4.0) by ChineseAcademy of Social Sciences· Guidelines of Shenzhen Stock Exchange No. 1 for the Application of Self-Regulation Rules for Listed
Companies - Standards for Implementation of Disciplinary Actions for Listed Companies by ShenzhenStock Exchange· Social Responsibility Instructions to Listed Companies by Shenzhen Stock ExchangePreparation process Issue collection Internal collection: All departments/branches and subsidiaries/report preparation teams of the CompanyExternal collection: Regular stakeholder surveys/irregular stakeholder symposiums/stakeholder demandsurveys/professional organization seminars Content selection External review: Suggestions from external experts and communications with stakeholdersInternal review: Evaluation of corporate social responsibility concepts, evaluation of sustainabledevelopment strategies and comparison of domestic and foreign reporting standardsSubstantive evaluation: Identication of major stakeholders, updating of the issue pool, screening ofpotential substantive issues, analysis of questionnaires and disclosure of information Report preparationReport framework planning - Data collection and analysis - Report preparation and design - Internalreview of report - Solicitation of opinions from stakeholders - Modication and improvement of report -Approval by the Company’s Board of Directors - Report rating
Report release and improvementReport release and dissemination - Report feedback collection - Continuous improvement of reportcontentsReliability assuranceThe Company and all members of the Board of Directors guarantee that the information disclosed is true,complete and accurate without any false records, misleading statements or signicant omissions.Report acquisition
To implement the concept of low-carbon environmental protection, we will release the Report in electronicformat. To obtain the Report, you can log in to cninfo www.cninfo.com.cn to read the electronic versionof the Report. In case of any questions or suggestions regarding the Report, please send an email todsb@lzlj.com.
About UsLeader’s SpeechResponsibilityManagement
Strengthening of Leading Role of PartyBuildingOptimization of Corporate GovernanceStrict Control of Food SafetyEstablishment of Digital Intelligence-based Enterprises
Empowerment to Employee GrowthJoint Efforts for Win-win by PartnersEnthusiasm about Social WelfareSupport for Rural RevitalizationInheritance of Intangible Cultural HeritageAdvocation of Responsible Drinking
Strengthening of Environmental ManagementPromotion of Energy Conservation and Carbon Emission ReductionImplementation of Environmental Protection Publicity and EducationDeepening of Green Operation
Green Dependence - Co-creation of Low-carbon Future
Together Now - Co-creation ofBeautiful World
Coexistence of Interests - Co-creation of Excellent Brand
Appendix
Table of Key PerformanceIndex of MetricsOpinion Feedback
CONTENTS
PrefaceIII
IIIIV
V
Preface
About Us
About Us
Company prole
Luzhou Laojiao Co., Ltd. is located in the Baijiu city of Luzhou, Sichuan. Luzhou Laojiao GroupCo., Ltd. is the largest shareholder of the Company and the State-owned Assets Supervision andAdministration Commission of Luzhou is the actual controller of the Company. The Companywas formerly known as “Luzhou Laojiao Brewery” and later renamed as “Luzhou Laojiao Co.,Ltd.” It was listed on the Shenzhen Stock Exchange (SZSE) in 1994 and is the rst joint-stockenterprise in the national brewing industry and the rst listed Baijiu enterprise on the ShenzhenStock Exchange. So far Luzhou Laojiao has become a powerful state-owned large-scalebackbone enterprise and a nationally renowned enterprise.
Luzhou Laojiao is the pioneer of strong aroma techniques, the makerof strong aroma standards and the builder of strong aroma brands,which is known as the “ancestor of strong aroma”. In 1324 AD(The first year of Emperor Taiding’s rule of the Yuan Dynasty), GuoHuaiyu, the founder of Chinese Baijiu Daqu, created “Ganchun Qu”,which led Chinese Baijiu into the era of “Daqu liquor”. Besides, hecreated “traditional brewing method of Luzhou Laojiao” that hasbeen inherited for nearly 700 years and 24 generations. In 2006, the“traditional brewing method of Luzhou Laojiao” was included in therst batch of “List of National Intangible Cultural Heritage”.
In 1573 AD, Shu Chengzong built Luzhou Laojiao 1573cellars of national treasure, which have been in use for 450years. In 1996, they were rated by the State Council as thefirst site listed in “National Key Cultural Relics ProtectionUnits” in the industry and are the only treasure-class “livingcultural relic” at the national level in China that has been inuse for more than 100 years that coexists with DujiangyanIrrigation system in China. In 2013, 1619 brewing cellarswith a history of over 100 years, 16 Ming and QingDynasty ancient brewing workshops and 3 natural Baijiupreservation caves in Luzhou Laojiao were all listed in“National Key Cultural Relics Protection Units”.The Company has multiple products, including NationalCellar 1573, Luzhou Laojiao 1952, Luzhou Laojiao Tequ,Centennial Luzhou Laojiao Jiaoling Baijiu, Luzhou LaojiaoTouqu, Luzhou Laojiao Black Cap, etc., which are best-selling at home and abroad.Luzhou Laojiao has always adhered to the corporatephilosophy of “liquor brewed with the universe, spiritgenerated by the world” and committed to fulfilling thesocial responsibility of state-owned enterprises, buildinga good commercial ecology, and contributing to nationaldevelopment and national rejuvenation.In recent years, the Company has actively participated invarious public welfare and poverty alleviation activities andhas won the “China Charity Award” for three consecutivetimes. It has also won multiple honors, including “NationalAdvanced Collective for Social Poverty Alleviation”, “ChinaRed Cross Contribution Medal”, “National Charity andLove Enterprise”, “National Advanced Collective for PovertyAlleviation”, and “Advanced Designated Poverty AlleviationOrganization in Sichuan Province”.
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About Us
Luzhou Laojiao Health Wine Sales Co., Ltd.Luzhou Laojiao Whitail Baijiu Industry Co., Ltd.
FunctionalDepartment
Subsidiaries
Luzhou LaojiaoSales Co., Ltd.
Luzhou Laojiao
Co., Ltd.
Work Department of Party CommitteeBoard OfceGeneral Manager’s Ofce Chengdu Ofce Beijing OfceOfce of the Commission for Discipline InspectionAudit OfceTrade Union OfceSupervision OfceEnterprise Management and Development CenterFinancial Management and Operation CenterAsset and Engineering Management CenterLegal Risk Control CenterDigital Development CenterHuman Resources Management CenterTraining CenterCorporate Culture CenterSupply Chain Management CenterPackaging Material Procurement and Supply CenterQuality Management CenterSafe Production Management CenterEcological Environment Protection CenterComprehensive Management OfceChief Engineer’s Ofce (Technical Center)Brand Image Management CenterIntellectual Property Protection CenterOfce of Major Project Research and PromotionAppreciation Innovation CenterMuseumBig Customer Service Center
Luzhou Laojiao Niangjiu Co., Ltd.Luzhou Laojiao Health Wine Co., Ltd.Luzhou Laojiao E-commerce Co., Ltd.Luzhou Laojiao New Retail Co., Ltd.Luzhou Laojiao Technology Innovation Co., Ltd.
Organizational structure
Luzhou Laojiao Boda Wine Marketing Co., Ltd.Luzhou Naxi District Dingli Winery Industry Co., Ltd.Luzhou Dingyi Liquor Sales Co., Ltd.Luzhou Laojiao New Baijiu Industry Co., Ltd.Luzhou Laojiao I & E Co., Ltd.Luzhou Laojiao Custom Wine Co., Ltd.Luzhou Laojiao Youxuan Supply Chain Management Co., Ltd. Guangxi Luzhou Laojiao Imported Baijiu Industry Co., Ltd.Luzhou Laojiao Nostalgia Baijiu Marketing Co., Ltd.Mingjiang Co., Ltd.Luzhou Laojiao Fruit Wine Co., Ltd.Luzhou Laojiao International Trade (Hainan) Co., Ltd.
Luzhou Pinchuang Technology Co., Ltd.Luzhou Laojiao InternationalDevelopment (HK) Co., Ltd.
Luzhou Laojiao Commercial Development(North America) Co., Ltd.Luzhou Red Sorghum ModernAgricultural Development Co., Ltd.
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About Us
Conceptdimension
Management
dimension
Operationdimension
Corporate philosophy· Liquor brewed with the universe· Spirit generated by the world
“Three Unswerving Principles”· Unswerving principle of competitive
marketing strategy
· Unswerving principle of guidingideology of sales rst
· Unswerving principle of basic
principle of creation and sharing
Company management principlesCombination of humanisticmanagement with digitalmanagement
National Cellar 1573 ? ClassicNational Cellar 1573 ? Classic, originated from the “cellars ofnational treasure” built during the Emperor Wanli period of theMing Dynasty (1573 AD), and is brewed using the traditionalbrewing method of Luzhou Laojiao. Such Baijiu is colorless andtransparent with elegant cellar aroma, mellow, sweet, refreshingand clean aftertaste, soft and harmonious taste and clean andlong tail aroma, showing a typical style.
National Cellar 1573 ? Spirit of ChinaNational Cellar 1573 ? Spirit of China is a representative workof both China’s tangible cultural heritage and China’s intangiblecultural heritage. It was specially brewed in memory of the 1573cellars of national treasure and the traditional brewing methodof Luzhou Laojiao, which were selected as “National Key CulturalRelics Protection Units (1996)” and “List of National IntangibleCultural Heritage (2006)”. Such Baijiu is colorless and transparentwith elegant cellar aroma, delicate aged aroma, mellow, sweet,full and round taste, refreshing and clean aftertaste and longaftertaste, showing a typical style.
Corporate philosophy slogan
· Walking with society· Relying on the environment
· Coexisting with humanity
Corporate spirit· Respect others and work hard· Innovation and excellenceCorporate mission· Where Chinese people go· Appreciate Luzhou Laojiao
Corporate vision· Be a giant in the ChineseBaijiu industry· Be a agbearer of ChineseBaijiu culture
Core values·Inherit culture andcontinuously innovate· Focus on customers andcreate wealth
“Three Stabilities”· Price stability· Team stability· Policy stability
“Four Requirements”· Co-prosperity with the industryand mutual benet with customers· Dependence with customers andsynchronous development with
the marketImplementation of organizational structure construction, implementation of channelnetwork construction, implementation of brand focus shaping, implementation ofservice culture creation, and implementation of company efciency revolution
Human resource managementconceptTalents are capital and there mustbe a position for a person withachievement
Marketing management
concept
Customer-centered theoryResearch and developmentmanagement conceptBuilding of four rst-classperspectives with market orientationShaping of four forces to achieve atransformation
Production managementconceptInheriting the ancestral brewingmethod to become a breweryleader
Quality management
concept
Let the quality of Chinese
Baijiu be visible
Environmental managementconceptHappy life originates from greenproduction
Safety management conceptSafe, healthy and happySocial responsibility concept
Social responsibility concept
Culture creates value
and harmony
promotes development
Corporate cultureProducts
“Five Implementations”
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About Us
Luzhou Laojiao Black Cap
Luzhou Laojiao Black Cap is a new strategic single product of Luzhou Laojiao. Relying on the cultural relic cellarresources of Luzhou Laojiao, which accounts for 91.3% of the whole industry, it is brewed by adhering to thecore values of solid fermentation of pure grains and the concept of minimalism and environmental protectionand adopting the industry’s pioneering “cellar mud inheritance technology”. Its quality has been evaluated byacademicians of the Chinese Academy of Engineering and experts of the China Liquor Industry Association, reachingthe quality level of cellar brewing with more than 30 years of cellar age. It has a fragrant taste of grain and mellow,soft and sweet aftertaste, becoming a value benchmark as a leader in high-quality light bottle liquor.
Luzhou Laojiao Touqu
Luzhou Laojiao Touqu is a core single product of Luzhou Laojiao. Since its inceptionin the 1950s, it has won multiple honors, including the highest gold award at theMoscow International Famous Wine Exhibition by virtue of its top-grade quality andclassic taste of “strong and mellow aroma with a lingering aftertaste”. It has beenbest-selling in China for 70 years and is a popular famous Baijiu trusted by consumers.
Gogoon
“Gogoon” is positioned as a new luxury Baijiu, which originates from the world’s top distillateliquor-producing areas. It has international popular alcohol content, international taste flavor,international aesthetic design and other high-quality properties, bringing a new drinking experienceto the new generation with an international vision.
Luzhou Laojiao Tequ 60s Tribute Edition
The Luzhou Laojiao Tequ 60s Tribute Edition is a “pioneer of nostalgic category” of China. In the1960s, due to its scarce production, it could only be purchased with special permits from agencies ator above the county level. Therefore, it was affectionately referred to as the “Old County Magistrate”by the people and was a rare treasure (only purchase with a Baijiu permit) after the founding ofthe People’s Republic of China. In 2014, the new edition of the Luzhou Laojiao Tequ 60s Editionwas created, which preserved the image of the 1960s Tequ Baijiu, reproducing the classic avor ofthe era. Only sales through group buying channels with limited quota supply ensure the product’sexclusivity, preciousness and reliability.
Centennial Luzhou Laojiao Jiaoling BaijiuLuzhou Laojiao fully utilizes the advantages of cellar resources, naming Baijiu with its corresponding cellar age and grading it basedon cellar age. In addition, it selects exclusive cellars for brewing and creates a core strategic brand that is in line with National Cellar1573 and belongs to the “cellar series” - Centennial Luzhou Laojiao Jiaoling Baijiu. The product includes Baijiu with 30 years oldcellar, 60 years old cellar, and 90 years old cellar. Centennial Luzhou Laojiao Jiaoling Baijiu has pioneered the “cellar age year” andbecome the pioneer and leader of the Jiaoling Baijiu category, setting industry standards for the “Jiaoling Baijiu” category.
60 years old cellar90 years old cellar30 years old cellar
Luzhou Laojiao TequLuzhou Laojiao Tequ is a “strong aroma benchmark Baijiu” with a bottle shape that uses thestandard currency “knife-shaped coin” after the unication of the six states by the Qin Dynasty.Among all kinds of strong aroma Baijiu, Luzhou Laojiao Tequ is honored as an “authentic strongaroma and Chinese avor” by virtue of “four honors”, that is, the rst strong aroma Baijiu that wonthe international gold medal in China; the only strong aroma Baijiu that has won the title of “ChineseFamous Baijiu” for consecutive years; founder of strong aroma Baijiu standards; and the pioneerof the Tequ category. This product is world-famous for its unique style of “rich and mellow aroma,clear and refreshing taste and a lingering aftertaste” and is deeply loved by consumers.
Luzhou Laojiao 1952
Luzhou Laojiao 1952 is a leading product of the Luzhou Laojiao line. It pays tribute to thehonor of Luzhou Laojiao being awarded the rst edition of famous Baijiu in 1952 and drawson the essence of ve editions of famous Baijiu. Hence, it is created as a high-end and strongaroma representative work, which is a benchmark of the value of Chinese famous Baijiu.
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Leader’s Speech
Chairman’s Speech
2022 is the beginning year of a new journey to comprehensively builda modern socialist country and of advancing towards the secondcentennial goal. It is also a crucial year for Luzhou Laojiao to firmlyimplement the “136” development strategy. This year, Luzhou Laojiaotook learning and implementing the spirit of the “20th NationalCongress” of the Communist Party of China as its guide and adhered tothe spirit of culture casting, quality foundation and brand leadership.Hence, it has withstood severe tests such as economic downturnand intensified competition and advanced to a new highland ofdevelopment with hard work, contributing to the new era of attainingachievements with responsibility.
We practiced green ecology and led development withharmonious coexistence. We adhered to the responsibilityof building and consolidating a good industry developmentpattern, actively practiced the development consensus of“common culture”, “common standard setting”, “commonrule adherence”, “common market expansion” and “commoncrisis resolution”, leading the healthy ecology of the Baijiuindustry. We continuously improved the extension and layoutof the “Baijiu industry+” industrial chain and conducted in-depth regional cooperation in organic grain cultivation,scientific research platform construction and major projectconstruction, actively creating a systematic and comprehensiveindustrial ecology. We actively implemented the environmentalmanagement concept of “happy life originates from greenproduction” and established and improved environmentalrisk monitoring mechanisms, environmental risk responsemechanisms and environmental management systems,continuously improving production technology and processesto further support the national “carbon peaking and carbonneutrality” strategy with practical actions and maintain a goodgreen development ecology.
We strengthened the fulfillment of responsibilities andcontributed to developing the era of attaining actualachievements. At the time of developing and strengthening
Luzhou Laojiao Group Co., Ltd.and Luzhou Laojiao Co., Ltd.Secretary of the PartyCommittee and Chairman
ourselves, we have always borne in mind the political natureof the “state-owned enterprise under the leadership of theParty”, actively integrating into the overall situation of ruralrevitalization and development and actively participatingin social welfare activities. In 2022, we assisted ruralrevitalization in designated assistance areas by implementingmeasures such as infrastructure renovation, “purchasinginstead of donations,” and education assistance. Wecumulatively invested a total of RMB 2.5515 million asassistance funds and were awarded the title of “AdvancedCollective in Designated Assistance Work” in SichuanProvince. We carried out public welfare projects such as the“Provincial Poverty Relief Fund” and the “Luzhou LaojiaoGold Teacher Award” and donated a total of RMB 3.21million to support the development of local education.2023 is a crucial year for Luzhou Laojiao to achieve its high-quality development goals during the “14th Five-Year Plan”period. We will closely focus on the development theme of“promoting reform, strengthening collaboration, focusingon key points and achieving a leap development together”.Moreover, we will walk with society, have a dependenceon the environment, seek coexistence with humans andwork together with consumers, investors, partners, andstakeholders to achieve a new high-quality development forLuzhou Laojiao!
Luzhou Laojiao will closely focus on the development theme of “promotingreform, strengthening collaboration, focusing on key points and achievinga leap development together”. Moreover, it will walk with society, have adependence on the environment, seek coexistence with humans and worktogether with consumers, investors, partners, and stakeholders to achievea new high-quality development for Luzhou Laojiao!
We adhered to value creation and united efforts throughsharing results. We have always adhered to positiveinteraction with investors and shareholders with integrityand compliance as the fundamental operation principleand actively safeguarded and guaranteed the interests ofstakeholders to further continuously enhance corporatevalue and establish a good image of the Company in thecapital market. We established a good cooperation andcommunication mechanism with customers and partners,practicing the concept of “customer is team”, respectingcustomers, relying on customers, serving customers,and helping customers. Hence, the symbiotic, win-winand synchronous manufacturer relationship has beenstrengthened. We continuously promoted the co-growth ofemployees and enterprises, comprehensively strengtheningthe selection of scientific talents and striving to create the“two paradises” for employees. A good atmosphere of cadreentrepreneurship with the “team working together, centralcadres making concerted efforts and employees workinghard” has been created. The Company’s organizationalvitality, talent vitality, and management vitality were stronglytriggered.
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“A decade-old brand relies on marketing, a century-old brandrelies on quality, and a millennium-old brand relies on culture”. Inresponse to multiple challenges such as consumption stagnation,all the people of Luzhou Laojiao National Cellar united and foughttenaciously, achieving a revenue growth rate of over 20% for fiveconsecutive quarters and a net prot growth rate of over 25% for nineconsecutive quarters in overcoming difculties. The resilience of LuzhouLaojiao brand is prominent and its business indicators have improvedwhile maintaining stability, keeping a healthy and rapid developmentmomentum.
the construction of intelligent factories with a production speed ofover 12000 bottles/hour for boxed Baijiu and over 48000 bottles/hour for light bottle liquor, achieving non-landing production fromgrains to raw Baijiu to nished products. We strictly implementedbottle storage management and increased research investmentyear by year. Therefore, the quality and quantity of Luzhou Laojiaoobtained continuous improvement.In 2022, great progress was made in the construction of ourheadquarters again. We continuously optimized internal controlconstruction, cumulatively released a total of 246 systems andachieved rearrangement and optimization of 54 OA processes.The supervision of funds, assets, projects, bidding and tenderingand other aspects were comprehensively strengthened and a legalrisk control rate of 100% was achieved. We effectively fulfilledthe information disclosure obligations as a listed company andreleased over 100 reports. Management innovation and efcientempowerment were realized. The Company has been selectedas one of the first batch of pilot organizations in the provinceand the third batch of pilot organizations in China regardingelectronic reimbursement, recording and archiving of value-addedtax electronic invoice. The archive innovation case of LuzhouLaojiao has been successfully selected as one of the rst batchesof pilot organizations for the construction of digital archives
(offices) in enterprise groups in China, and has been rankedamong the first camp of enterprise archive management inChina. Due to the continuous consolidation of safety andenvironmental protection, zero safe production accidents andzero incidence of occupational diseases throughout the yearhave been realized. The Company was awarded the title of “SafeProduction Standardization Level-1 Enterprise” and “ProvincialHealth Enterprise”. Due to the implementation of green, low-carbon and clean production, the Company was awardedthe title of “Provincial Green Supply Chain ManagementEnterprise”. Due to the implementation of closed-loopmanagement of pollution prevention and control, the Companyrealized a 100% compliance rate of the treatment of waste gas,waste water and waste residues and noise. The Company wasawarded the provincial “Environmental Credit Evaluation andEnvironmental Integrity Enterprise” for three consecutive years.In 2023, we will strive to promote market leadership,cultural leadership, quality leadership, brand leadership andmanagement leadership with a more uplifting spirit, moresolid measures and a more rigorous style and comprehensivelywin the new battle of seizing opportunities and overcomingdifculties together!
General Manager’s Speech
“Luzhou Laojiao will strive to promote market leadership, culturalleadership, quality leadership, brand leadership and managementleadership with a more uplifting spirit, more solid measures anda more rigorous style and comprehensively win the new battle ofseizing opportunities and overcoming difculties together!”
Luzhou Laojiao Co., Ltd.Deputy Secretary of theParty Committee andGeneral Manager
In 2022, the front of our sales was continuouslybroken through. We rmly implemented a competitivemarketing strategy and the main single products havereturned to the list of nationally renowned Baijiu.National Cellar 1573 takes the lead and keeps its leadingposition, rmly occupying the high-end place of ChineseBaijiu. Tequ brand and Jiaoling Baijiu brand have achievedhistoric breakthroughs and the terminal coverage scaleof the Touqu and Erqu brands has been continuouslyexpanded. The brand revival of “Luzhou Laojiao” hasentered a fast lane. A deep layout with multiple productlines and up-to-date concepts has been formed, whichis accelerating the formation of emerging growth poles.Especially, Luzhou Laojiao’s two major base markets inNorth China and Southwest China have been establishedand the pace of nationalization is accelerating.
In 2022, our production capacity obtained afirm guarantee. We promoted the upgrading of high-quality Baijiu production capacity and ensured that everydrop of Baijiu was brewed from pure grains in a solidstate. Various varieties of aged cellars produced aroma-producing cellar mud groups of different characteristics.Through the implementation of the Company’s uniquecellar mud grafting technology, the Baijiu quality of newlybuilt cellars has reached a high-quality level. We promoted
Leader’s Speech2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
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Responsibility ManagementResponsibility conceptLuzhou Laojiao emphasized the coordinated development of enterprise operation with economy, society and environment,always adhering to the corporate philosophy of “liquor brewed with the universe, spirit generated by the world” andpracticing the social responsibility concept of “walking with society, relying on the environment, and coexisting withhumanity”. On one hand, Luzhou Laojiao pursued economic benefits; on the other hand, it highlighted the needs ofstakeholders such as shareholders, employees, communities and partners and committed to fullling the social responsibilityof state-owned enterprises, contributing to the development of the country and the revitalization of the nation with thepower of Luzhou Laojiao.
Responsibility communication Information disclosureLuzhou Laojiao systematically disclosed the Company operation information, conducted communication and interaction withinvestors and maintained investor relationships by preparing and releasing regular reports such as semi-annual and annualreports. Besides, it regularly held performance brieng meetings and expanded channels for stakeholders to understand theCompany, regularly disclosing the practical achievements of the Company’s social responsibility fulllment to the public. Communication with stakeholders
Luzhou Laojiao attached great importance to the participation of stakeholders, continuously improved the socialresponsibility communication mechanism and actively opened effective channels for communication with stakeholdersfor a deep understanding of and response to the expectations and demands of stakeholders under the supervision ofstakeholders.
StakeholdersExpectations for the CompanyOur response
Government
· Comply with national laws and regulations· Follow the national macroeconomicregulation· Preservation and appreciation of state-owned assets· Rural revitalization and common prosperity
· Special report· Complete the production andoperation plan· Full tax payment· Visits and communication
Shareholdersandinvestors
· Improve shareholder returns· Standardize corporate governance· Practice compliant operations· Prevent operational risks
· Adhere to stable operation· Investor exchange meetings· Information disclosure· Establish an internal control system
Employees
· Protection of employee rights and interests· Employee career development· Diverse employee activities· Employee safety and health
· Workers and EmployeesRepresentatives' Meeting· Trade unions at all levels· Employee training· Health management
ConsumerCustomer
· Product quality and safety· Customer service and rights protection· Responsible marketing practices· Data security and privacy protection
·Customer relationship management· Customer symposiums and visits· Customer satisfaction survey· Respond to customer complaints· Consumer activities such as tastingevents and brand promotion
Environment
· Protect the ecological environment· Address climate change
· Promote green production· Practice green operations
Partners andsupply chain
· Adhere to business ethics· Open and fair procurement· Supply chain management· Distributor management and rightsprotection· Mutual benet and win-win situation· Common development
· Contract fulllment· Qualication review· Public procurement information· Negotiation and communication· Supplier training session· Distributor conference
Community
· Drive community development· Support social welfare
· Participate in community activities· Carry out public welfare practices· Create job opportunities· Support rural revitalization
StakeholdersExpectations for the CompanyOur response
Responsibility Management2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
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About Us
1. Water resource management
2. Energy management
3. Packaging material management
8. Customer service
9. Sales network
10. Supply chain management
11. Quality management
20. Governance of the Board of Directors
21. Protection of shareholders’ rights and interests
22. Internal risk control
Environmental issues
Social issues
Governance issues
From the perspective of the Company’s strategic planning and current status of social responsibility management,Luzhou Laojiao formulated 25 issues in three categories of environment, society and governance by reference to theESG (Environment, Society, and Governance) disclosure frameworks at home and abroad and in the industry. Prior tothe preparation of the Report, the Company conducted substantive issue analysis in the form of questionnaires formanagement, employees and external stakeholders such as suppliers and communities.Luzhou Laojiao will carry out social responsibility and ESG-related management and communication work based on theabove results, forming priority issues and matters and actively responding to the demands of stakeholders.
Analysis ofsubstantive issues
Importance to Luzhou Laojiao
Importance to stakeholders
LowHigh
High
4. Greenhouse gas emissions
5. Sewage and waste
6. Biodiversity protection
7. Protection of the Yangtze River
12. Intellectual property
13. Occupational health and safety
14. Employee rights, interests and benets
15. Employee training and development
16. Community public welfare
17. Responsible drinking
18. Responsible marketing
19. Rural revitalization
23. Compliant operations
24. Economic performance
25. Anti-corruption
2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
2021
Excellent Practice Organization of Digital Transformation of Enterprises inWestern China in 2022
Western China Enterprise Informatization SummitAdvanced Organization for Digital Transformation of China’s Light Industry in2022
China National Light Industry Council
China Light Industry Information CenterIndustry Deepening Workers’ Team of China’s Light IndustryThe First Batch of Key Enterprises to Be Promoted in the Special Constructionand Reform Action
National Committee of the Trade Union of Financial and
Commercial Workers, Light Industry and Textile Workers,
Tobacco Industry Workers
China National Light Industry CouncilThe Second Batch of Pilot Organizations of All-China Federation of TradeUnions to Improve the Quality of Life of Employees
General Ofce of All-China Federation of Trade UnionsAdvanced Organization of the National “Ankang Cup” Competition SafetyCulture Publicity Activity
Organizing Committee of the National “Ankang Cup”
CompetitionAAA Credit CompanyChina Cheng Xin International Credit Rating Co. Ltd.First Prize of Science and Technology Progress Award of China National LightIndustry Council
China National Light Industry CouncilFirst Prize of Science and Technology Award of China National Food IndustryAssociation
China National Food Industry AssociationThe 16th "Top 100 Value Listed Companies on the Main Board" in the ValueSelection among China Listed Companies
Securities Times“Annual Excellent Management Team” in the 16th Value Selection amongChinese Listed CompaniesThe Best Investor Relations Award for Chinese Listed Companies in the “TianmaAward - Investor Relations Selection for Chinese Listed Companies”Best Practice Award for Board Ofce of Listed Companies in 2022China Association for Public CompaniesTop 10 Inuential Listed Companies in 2021
Snowball Finance2021 Value Focus Listed CompaniesTop of Investment Value of Gold Medal Enterprises RankingTop 50 Most Popular Listed Companies by Institutions in the Market ValueRanking of Listed Companies in 2022
Wind InformationTop 50 Chinese Listed Companies by Market Value in 2022
In 2022, the Company received some social honors as follows:
The First Batch of Pilot Organizations for the Construction of Digital Archives(Ofces) in Enterprise Groups in China
Ofce of the National Archives Administration of ChinaPilot Organization in China Regarding Electronic Reimbursement, Recordingand Archiving of Value-Added Tax Electronic Invoice
Ofce of the National Archives Administration of China
and General Ofce of Ministry of Finance of the People’s
Republic of China
General Ofce of Ministry of Commerce of the People’s
Republic of China and General Office of State Taxation
Administration2022 National Demonstration Enterprise for Creating Harmonious LaborRelations
Ministry of Human Resources and Social Security of the
People’s Republic of ChinaTypical Enterprise for Deep Processing of Agricultural Products in the IndustrialField
Ministry of Industry and Information Technology of the
People’s Republic of ChinaNational Technological Innovation Demonstration EnterpriseList of National Industrial Tourism Demonstration Bases in 2022
Ministry of Culture and Tourism of the People’s Republic
of ChinaFirst Prize of 2022 Sichuan Provincial Science and Technology Progress Award
The People’s Government of Sichuan ProvinceFirst Prize of Sichuan Patent Award (2021)Provincial Green Supply Chain Management Enterprise in 2022Sichuan Provincial Economic and Information DepartmentAdvanced Organization of Municipal Key Internal Security Work in 2021Ofce of Luzhou Municipal People’s GovernmentAdvanced Enterprise in the Statistical Work of State-owned Assets of State-owned Enterprises in the City in 2021
State-owned Assets Supervision and Administration
Commission of LuzhouAdvanced Organization of Talent Work in 2022
Leading Group for Talent Work of the CPC Luzhou
Municipal CommitteeList of Selected Projects for the Integration Development of Intangible CulturalHeritage and Tourism in China in 2022
China Intangible Cultural Heritage Protection Association2022 China Construction Engineering Luban PrizeChina Construction Industry AssociationTop Ten Advances in Food Technology in China in 2022Chinese Institute of Food Science and TechnologyTop 30 Best Employers in China in 2022
China Annual Best Employer Organizing Committee of
Zhilian Recruitment
RESPONSIBILITYAND HONOR
Award nameIssuing OrganizationAward nameIssuing Organization
Responsibility Management2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
2223
In response to UN sustainable development goals *
Green development is an essential requirementfor the construction of ecological civilization. Inresponse to the national “double carbon” strategy,Luzhou Laojiao insisted on the concept of sustainabledevelopment with the goals of “carbon peaking”and “carbon neutrality”, and made continuous effortsin environmental management system construction,resource conservation, environmental pollutionprevention, green product development and greensupply chain management., so as to be the green leaderin China’s Baijiu industry by pursuing the sustainabledevelopment path of ecological priority and greenenvironment protection.
We have to stick to the concept of “green mountainsand clear water are equal to mountains of gold andsilver”, and unswervingly follow the road of ecologicalpriority and green development. ——Xi Jinping
GreenDependenceCo-creation of Low-carbon Future
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green DependenceCo-creation of Low-carbon Future
Strengthening of EnvironmentalManagement
Certificate of environmentalmanagement systemcertication
Environmental risk prevention and control
In strict accordance with the Law of the People's Republic ofChina on Environmental Impact Assessment, Regulations onthe Administration of Construction Project EnvironmentalProtection of the People’s Republic of China and other lawsand regulations, Luzhou Laojiao handled the environmentalprotection procedures for construction projects, supervisedthe implementation of environmental protection measures,and ensure that the ecological and environment protectionof the construction project was legal and compliant.
Luzhou Laojiao carried out risk assessment of environmentalemergencies and determined risk levels in accordancewith the requirements of laws and regulations such asthe Management Measures for the Filing of EmergencySchemes for Environmental Emergencies in Enterprisesand Institutions (Trial) and Industry Directory for the Filingof Emergency Schemes for Environmental Emergencies inSichuan. The Company prepared risk assessment reports forenvironmental emergencies and investigation reports onenvironmental emergency resources, which have been ledwith the higher authorities as required.
Legal and compliant environmental procedures
Environmental risk response mechanismEnvironmental risk monitoring mechanism
Emergency drill for environmental emergencies
Luzhou Laojiao established a dual prevention mechanismwith risk grading management and control and hiddendanger detection and treatment. Through the hidden dangerdetection mode of “comprehensive inspection-specialinspection-daily inspection”, the Company carried out regularenvironmental protection hidden danger detection activities,constantly improved the sensitivity of environmentalprotection hidden danger discovery and the efficiency ofhidden danger treatment, and constantly improve themonitoring and early warning mechanism through onlinemonitoring, self-monitoring and manual monitoring, so as toensure that the discharge of pollutants meet the standardsand ensure that the discharge compliance rate is 100%.
The Company organized environmental risk responseactivities in various forms, such as company-level emergencydrill for environmental emergencies, special emergency drills,department-level special emergency schemes, and on-sitedisposal plan drills, constantly refining emergency rescuemechanisms and improving emergency response capabilities.
Luzhou Laojiao adhered to the environmental management concept of “happy life comesfrom green production”, practiced the environmental management principles of “prioritygiven to protection and prevention, with comprehensive management, full participationand responsibility for damage”, strictly abided by environmental laws and regulations,improved the environmental management system, perfected the environmental riskprevention and control mechanism, strengthened pollution prevention and control, andconstantly enhanced the environmental management capabilities. In 2022, in terms ofenvironmental management, the Company was not punished by government departmentsin any form.Environmental management systemLuzhou Laojiao passed the ISO14001 environmental management system certificationand established an environmental management system according to GB/T24001-2016 (environmental management system) standards and other laws, regulationsand requirements. It revised the Environmental Management Manual several times,and formulated the Collection of Environmental Protection Management System ofLuzhou Laojiao Co., Ltd., which covered 25 management systems in ten aspects,including “environmental protection responsibility system, project environmentalprotection management, discharge permit management, pollution prevention andcontrol management, hidden danger detection and management, clean production,environmental statistics and declaration, information disclosure and credit evaluation,environmental training and publicity, and environmental protection file management”.The Company formulated management documents such as Guidance for EnvironmentalProtection Management of Luzhou Laojiao Co., Ltd., Ecological Environmental ProtectionResponsibility List of Luzhou Laojiao Co., Ltd. and Environmental Protection Risk ControlList of Luzhou Laojiao Co., Ltd. to realize normalized, standardized and ne managementof ecological and environmental protection.At the beginning of each year, the Company released the annual ecological andenvironmental protection work plan and signed the responsibility statement forecological and environmental protection target management with various departments(organizations), so as to dene the specic targets and responsible subjects of ecologicaland environmental protection work, strengthen supervision and assessment, and promotethe implementation of responsibilities.In recent years, the Company has constantly perfected its environmental managementsystem, solidly improved its environmental management capabilities, and strived toimplement green, low-carbon and high-quality development.
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Green DependenceCo-creation of Low-carbon Future
Comprehensive emergency response drill forsecondary environmental emergencies (anaerobic tankleakage) caused by earthquake disaster in 2022.
Emergency drill for waste solvent ink leakageaccident in packaging workshop 2.
Desktop simulation drill for alkali-containing wasteliquid leakage in laboratory.
In 2022, the Company preparedthe Environmental Protection RiskControl List of Luzhou LaojiaoCo., Ltd.The Company made, posted anddistributed 49 notification cardsfor environmental facilities, so asto standardize the management ofenvironmental facilities in the territory.
The Company prepared daily managementmeasures and on-site emergency responsemeasures for 62 environmental risk scenarios,so as to ensure that grass-roots staff couldeffectively respond to environmental emergenciesand effectively implement risk prevention.In 2022, the Company organized emergency drills for environmental emergencies (Partial).
On-site disposal drill for Baijiu leakage accident in liquordepot.Emergency drill for waste ink leakage pollution emergency inpackaging production workshop.
Emergency drill for on-line monitoring fault of ue gas.
On-site disposal plan of waste water leakage accident and drillfor hazardous waste leakage accident in waste water station.
The Company organized and carried out company-level emergency drill for environmental emergencies.
Compared with 2021The discharge of suspendedmatter per unit productof Company in 2022 wasreduced by
63.25%
The discharge of chemicaloxygen demand wasreduced by
12.44%
The total phosphorusdischarge was reduced by
23.25%
The total nitrogen dischargewas reduced by
16.94%
The ammonia nitrogendischarge was reduced by
60.46%
Panorama of Luohan Brewing Ecological Park Wastewater Treatment Station
Pollution prevention and controlIn 2022, the Company formulated 8 self-monitoring plans according to the requirements ofstandards such as Self-Monitoring Technology Guidelines for Pollution Resources - Alcohol Productsand Beverage Manufacturing Industry (standard No.: HJ1085-2020) and other standards. Itsubmitted 15 quarterly and 5 annual implementation reports for the pollutant discharge permit toenvironmental protection authorities and other government departments. The Company carried outself-monitoring 664 times a year, and obtained 149 self-monitoring reports, with the monitoringresults reaching the standard rate of 100%.Management of waste water dischargeLuzhou Laojiao established wastewater treatment stations in Huangyi Brewing Ecological Park andLuohan Brewing Ecological Park to fully guarantee the wastewater discharge up to the standard.The wastewater treatment station of Luohan Brewing Ecological Park adopted the process of“pretreatment +UASB+ improved AAO+ secondary biochemistry + chemical dephosphorization+ advanced treatment”. The wastewater treatment reached the direct discharge standard in Table3 of Discharge Standard of Water Pollutants for Fermented Alcohol and Baijiu Industry (GB27631-2011). The wastewater treatment station of Huangyi Brewing Ecological Park adopted the processof “pretreatment + anaerobic biological treatment + aerobic biological treatment + advancedtreatment”. The wastewater treatment reached the indirect discharge standard in Table 2 ofDischarge Standard of Water Pollutants for Fermented Alcohol and Baijiu Industry (GB27631-2011)and was discharged into the sewage treatment plant of Liquor Industry Park.The wastewater treatment station was equipped with a biogas recycling system, and the biogasgenerated in the wastewater treatment process was recycled as boiler fuel to realize resourceutilization.
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Green DependenceCo-creation of Low-carbon Future
Management of waste gas discharge
In terms of waste gas discharge, the Company’s treatment facilities for preventing and controlling waste gas pollution were runningnormally, the waste gas outlet was discharged up to standard, and low nitrogen combustion technology was adopted to the naturalgas boiler. The Company’s air pollutant discharge strictly followed the standards such as Emission Standard of Air Pollutants for Boiler,Emission Standard of Air Pollutants for Thermal Power Plants, Comprehensive Discharge Standard for Air Pollutants, Sichuan EmissionControl Standard for Volatile Organic Compounds DB51/ 2377-2017. Compared with 2021, the Company’s unit products reducedparticulate emissions by 40.22% in 2022.Types of mainpollutants andcharacteristicpollutants
Names of mainpollutants andcharacteristicpollutants
Discharge
mode
Number
ofdischarge
ports
Distribution ofdischarge ports
Dischargeconcentration
ImplementedpollutantdischargestandardsAir pollutantParticulate matter
Organizeddischarge
Luohan BrewingEcological Park
2.991 mg/m?20 mg/m?
Air pollutantSulphur dioxide
Organizeddischarge
Luohan BrewingEcological Park
0.2715 mg/m?50 mg/m?
Air pollutantOxynitride
Organizeddischarge
Luohan BrewingEcological Park
26.683 mg/m?150 mg/m?
Air pollutantSmoke and dust
Organizeddischarge
Huangyi BrewingEcological Park
0.859 mg/m?5 mg/m?
Air pollutantParticulate matter
Organizeddischarge
Huangyi BrewingEcological Park
1.090 mg/m?20 mg/m?
Air pollutantSulphur dioxide
Organizeddischarge
Huangyi BrewingEcological Park
0.530 mg/m?35 mg/m?
Air pollutantSulphur dioxide
Organizeddischarge
Huangyi BrewingEcological Park
0.766 mg/m?50 mg/m?
Air pollutantOxynitride
Organizeddischarge
Huangyi BrewingEcological Park
39.675 mg/m?100 mg/m?
Air pollutantOxynitride
Organizeddischarge
Huangyi BrewingEcological Park
44.828 mg/m?150 mg/m?
The Company’s discharge statistics of various outlets in 2022
Types of mainpollutants andcharacteristicpollutants
Names of mainpollutants andcharacteristicpollutants
Discharge
mode
Number ofdischarge
ports
Distribution ofdischarge ports
Dischargeconcentration
ImplementedpollutantdischargestandardsWater pollutants
Chemical oxygen
demand
Direct discharge1
Luohan BrewingEcological Park
0.026 mg/L50 mg/L
Water pollutantsAmmonia nitrogenDirect discharge1
Luohan BrewingEcological Park
0.149 mg/L5 mg/L
Water pollutantsTotal nitrogenDirect discharge1
Luohan BrewingEcological Park
5.976 mg/L15 mg/L
Water pollutantsTotal phosphorusDirect discharge1
Luohan BrewingEcological Park
0.090 mg/L0.5 mg/L
Water pollutants
Chemical oxygendemand
Indirect discharge1
Huangyi BrewingEcological Park
34.157 mg/L400 mg/L
Water pollutantsAmmonia nitrogenIndirect discharge1
Huangyi Brewing
Ecological Park
0.316 mg/L30 mg/L
Water pollutantsTotal nitrogenIndirect discharge1
Huangyi Brewing
Ecological Park
11.478 mg/L50 mg/L
Water pollutantsTotal phosphorusIndirect discharge1
Huangyi BrewingEcological Park
0.515 mg/L3 mg/L
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green DependenceCo-creation of Low-carbon Future
Disposal of solid wastesLuzhou Laojiao regulated the collection, temporary storage, transfer and disposal of theCompany’s solid wastes and hazardous wastes in strict accordance with the Management Systemof Hazardous Wastes Transfer Joint List, Pollution Control Standards for Hazardous WastesStorage, Regulations on Prevention and Control of Environmental Pollution by Solid Wastes inSichuan, and Notice on Launching Electronic Management Ledger for General Industrial SolidWastes.
The Company made full and rational use of solid waste and harmless disposal of solid wastein accordance with the principles of reduction, recycling and harmlessness in the prevention andcontrol of environmental pollution by solid waste.
The Company established an electronic ledger list of general solid waste, implemented the“Double Track Run Parallel” management mechanism of the electronic ledger and paper ledgerin combination with the actual situation of the Company, strengthened the environmentalmanagement of general industrial solid waste of the Company, and standardized the disposalof 32.25 tons of general solid waste in 2022. The Company formulated a hazardous wastemanagement plan, established a hazardous waste management ledger, standardized the wholeprocess management such as registration, storage and transfer of hazardous materials, andstandardized the disposal of 24.13 tons of hazardous waste in 2022.
Disposal forms of various wastes in the Company
CategoryDisposal formMud
It was handed over to the power generating company for
comprehensive disposal.Waste lees
[note]
It was comprehensively recycled by qualied third-party companiesActivated carbonIt was comprehensively recycled by qualied third-party companiesDiatomiteIt was comprehensively recycled by qualied third-party companiesFood and medicinal residueIt was comprehensively recycled by qualied third-party companiesWaste packing materialIt was recycled by renewable resources utilization technology companyWaste glassIt was comprehensively recycled by qualied third-party companiesWaste activated carbon, gear lubricating oil, wastecontaminants, hydraulic oil, waste oily gloves, rags, cottonyarn, waste liquid, waste chemicals and waste engine oil
They were handed over to a qualied third-party company for
professional disposalWaste acid, laboratory and on-line monitor waste
They were handed over to a qualied third-party company for
professional disposalLead-containing waste (waste lead battery)
It was handed over to the renewable resources development
company for recycling
Standardized disposalin 2022 General solid waste
Comprehensive energyconsumption per ten thousandoutput value of the Companyin 2022
Standardized disposalin 2022 Hazardous waste
32.25 tons
0.02
24.13 tons
[Note]: The waste lees were a kind of solid waste produced in the process of Baijiu brewing, which contained starch, protein,cellulose, amino acids, vitamins, etc. that were not fully utilized and could be used as resources
Promoting energyconservation andcarbon reduction
Luzhou Laojiao attached great importance to energy conservation and carbon reduction,adhered to the general policy of environmental protection management of “compliance withlaws and regulations, clean production, energy conservation and consumption reduction,and continuous improvement”, strengthened the compliance discharge managementof waste gas, waste water and waste residues, promoted the transformation of energy-conserving equipment and technology, accelerated the construction of green supply chain,and constantly promoted energy conservation and low-carbon development. In 2022, theCompany completed the technical improvement, production equipment transformation andsystem upgrade of many projects such as Luohan Brewing Ecological Park, so as to improveresource utilization efciency and reduce energy consumption and pollution emissions.The discharge reduction contributed to “carbon peaking and carbonneutrality”In order to implement the Implementation Plan for Carbon Peak in Industrial Field and helpcarbon peaking and carbon neutrality in industrial eld, in 2022, the Company conductedan inventory of greenhouse gas discharge in 2021 according to ISO14064:2018 standard,identied carbon discharge sources, established a carbon discharge source management listand a carbon discharge calculation list, and found out the carbon discharge background.ton of standardcoal/RMB tenthousand
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green DependenceCo-creation of Low-carbon Future
Huangyi Brewing Ecological Park implemented cogeneration using natural gasand biogas as gas sources, supplying heat energy for wine production throughcogeneration. Combined with an online monitoring system, the Company realizedreal-time monitoring of data such as nitrogen oxides, sulfur dioxide, particulatematter, flue gas discharge, and oxygen content in the flue gas, reducing theconsumption of non-renewable resources, and achieving green and low-carbontransformation of production energy consumption.
CogenerationEnergy conservation
and consumptionreduction
Huangyi Brewing Ecological Park
Steam reduction, energy conservation and emission reduction
In April 2022, the Company carried out the technical transformation of steam recycling. The Company built a set of energy-conservingsystem for WSR (Waste Heat Steam Purication and Pressurized Recovery) energy-conserving technology of chaff steamer in the workshopof Huangyi Brewing Ecological Park. While meeting the production requirements, the Company automatically ran the control systemsoftware to exchange the heat energy of waste heat steam from chaff steaming, so as to realize the pressurized recovery and utilizationof waste heat steam. After most of the waste gas was condensed into waste water, it was discharged to the waste water station fortreatment, and the rest waste gas was discharged up to the standard.The project was expected to be completed by the end of May 2023. According to the Company’s production process requirements atthe end of 2022, the Project would effectively reduce waste gas and produce carbon discharge after completion. The application of thistechnology was expected to save about 12,000 tons of steam and reduce about 2,000 tons of carbon dioxide discharge every year.Transformation of energy-conserving technology
Luzhou Laojiao actively implemented the national call on the transformation and upgrading of manufacturing industry and the strategicdeployment of “Revitalization of Sichuan Liquor” in Sichuan, and carried out a series of measures for automatic research and developmentof brewing equipment, energy-conserving equipment renewal, and technical transformation and upgrading in Luohan Brewing EcologicalPark and Huangyi Brewing Ecological Park, so as to improve resource utilization efciency and reduce energy consumption and wastepollution discharge.
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green DependenceCo-creation of Low-carbon Future
Luzhou Laojiao was awarded asa provincial “Green Supply ChainManagement Enterprise”
In 2022, the Company saved a total of RMB 16,584,200in energy costs through measures such as co-ring biogas,cogeneration, and the reuse of cooling water.By utilizing self-produced biogas in a reasonable manner,and mixing the biogas collected and treated from theHuangyi and Luohan waste water stations with naturalgas, about 584.26 tons of standard coal were saved, andmore than 680 tons of carbon dioxide discharge werereduced, resulting in a savings of approximately RMB1,202,900 in fuel costs.Through the Huangyi Energy Center for cogeneration,the self-generated electricity was approximately 13.5791million kWh, saving approximately 2,323.99 tons ofstandard coal, reducing carbon dioxide discharge by over2,700 tons, and saving approximately RMB 5,594,300 inelectricity costs.
Energy conservation and carbon reduction carried out by the Company (Partial)
The Company continued to promote the recycling ofcooling water. Luohan Park, Huangyi Park, etc. saved2,061,500 tons of water, saved RMB 4,795,400 of watercharges, and reduced 2.337 million tons of sewagedischarge.Through direct electricity purchase and electricitysubstitution trading projects, the Company saved RMB3,141,600 in electricity charges. After calculation, the mostsuitable basic electricity charge model for the Company’sactual situation was selected, saving approximately RMB
1.85 million in basic electricity charges.
The Company utilized advanced technologies suchas simulation technology, automation technology,online detection, industrial robots, and big data in theworkshop to achieve a 50% reduction in water resourceconsumption.
16,584,200RMB
Save energy charges by
206.15 tons
Save water by
584.26 tons
Save standard coal byapproximately
13,579,100kWhSelf-generating capacity byapproximately
5,594,300RMBSave electricity charges byapproximately
4,795,400RMB
Save water charge by
2,337,000 tons
Reduce sewage discharge by
50%Reduced water consumption by
Packaging production line
Establishment of a green supply chainWith the goal of “building a green supply chain and providing green products andservices”, Luzhou Laojiao incorporated green supply chain management into its long-term development plan, set up a green supply chain management leadership group,and formulated the Green Development Plan of the Company, Green Supply ChainImplementation Plan and Target Indicators and Green Supply Chain ManagementSystem to promote the construction of green supply chain. In 2022, the Company wasawarded “Green Supply Chain Management Enterprise” in Sichuan Province.The Company’s green supply chain was awardedOn November 24, 2022, the Sichuan Provincial Economic and Information Departmentreleased the “Announcement on the Enterprises (Parks) Approved in the Review ofProvincial Green Manufacturing List in 2022”, in which Luzhou Laojiao was awardedas a provincial “Green Supply Chain Management Enterprise”. Only four organizationsin the whole province passed the “Green Supply Chain Management Enterprise”evaluation, and Luzhou Laojiao was the only organization in the province’s Baijiumanufacturing industry to win the award.
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green DependenceCo-creation of Low-carbon Future
Implementationof EnvironmentalProtection Publicityand Education
Focusing on the publicity and education of green and low-carbon concepts, LuzhouLaojiao actively carried out low-carbon and environmental protection publicity, safetytraining and education activities, strengthened employees’ awareness of environmentalprotection, and continuously improved its own safety and environmental protectiontraining system to continuously promote for the cultivation of an economical andmoderate, green and low-carbon corporate development atmosphere.
Green and low-carbon promotion
A variety of green and low-carbon publicity activities were actively carried out by theCompany to help employees cultivate environmental protection habits, live a low-carbonlife and transform the consciousness of green development into consciousness of action.In 2022, the Company developed environmental protection training courses such asEnvironmental Protection Knowledge on “June 5th Environment Day” and EnvironmentalProtection Training for Resumption of Work and Production, and organized 11environmental protection training sessions such as Solid Waste Management and SpecialTraining on “June 5th Environment Day”. The number of people reached 19,059 througha combination of online and ofine training.
Environment protection knowledge competition organized by the Company for employees
In 2022, Luzhou Laojiao launched the environmental protectionknowledge competition “Focus on Energy Saving and EmissionReduction to Facilitate the Carbon Peaking and Carbon NeutralityGoals”. Through a knowledge competition, more than 60 full-time(part-time) environmental supervisors of the Company consolidatedtheir achievements of environmental protection knowledge learning,formed a good atmosphere of “learning through competition,practicing through learning, and being integrated”, which guidedemployees to fully implement the concept of green and sustainabledevelopment, and led to promote the high-quality development ofgreen and low-carbon industries.
2022
A series of activities for the 2022“June 5th” Environment Daywere orgnized, with the publicityof environmental laws andregulations, theme posters, themevideos, environmental public serviceannouncements and theme MVs onbulletin boards, display boards, LEDscreens and other carriers to createa strong promotional atmosphere.
Golden idea collection activity of“My suggestion for energy savingand emission reduction” and low-carbon behavior points activity werecarried out to encourage employeesto actively practice environmentalprotection and simple lifestylesuch as low-carbon travel, emptydish action and turning waste intotreasure.
The theme activity of “insistingon green energy saving toimplement double carbonaction” was carried out.
The volunteer service activity of“Be the pioneer of civilizationby classifying garbage first” waslaunched
Theme activity of “Adhere to GreenEnergy Saving to Implement the CarbonPeaking and Carbon Neutrality Action”
The training covers19,059people
The volunteer service activity of “Be the pioneer of civilization by classifying garbage rst” was launchedIn 2022, Luzhou Laojiao organized a volunteer service activity of “Be the pioneer of civilization by classifying garbage rst” foremployees in the community. Through various forms such as “garbage sorting” mini-class, knowledge quiz, “garbage sorting”and “big wheel”, the activity introduced to the community residents the importance of garbage sorting and how to correctly sortgarbage. In the form of education and fun, the event was held to raise residents’ awareness of garbage classication and to guidethem to practice civilized behavior of garbage classication and maintain a beautiful home together.
Volunteer service activity of “Be thepioneer of civilization by classifyinggarbage rst”
The theme activity of “Adhere to Green Energy Saving to Implement the Carbon Peaking and Carbon Neutrality Action”was launched.
In 2022, Luzhou Laojiao organized a theme activity of “Adhere to Green Energy Saving to Implement the Carbon Peaking andCarbon Neutrality Action” for employees online and ofine. The activity was started by watching the online launching ceremony ofthe 2022 Energy Conservation Publicity Week for Public Agencies, spreading the concept of green and low-carbon developmentand creating a strong atmosphere for energy conservation and carbon reduction through online punching of CDs and greentraveling, ofine distribution of brochures, placement of exhibition boards and other energy conservation publicity activities.
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green DependenceCo-creation of Low-carbon Future
Safety and environmentalprotection trainingactivities on WorldEnvironment Dayon June 5
Education and trainingactivities organized foroutsiders to learn safetyand environmentalprotection
Personnel in threepositions with certicates
Education and training onsafety and environmentalprotection
Rate
Rate ofcoverage
Pass rate
times
times
%
%
%
Training activity for internal auditors of quality and environmental systems at Luzhou Laojiao
Deepening of Green Operation
Luzhou Laojiao advocated employees to act economically to create a green officeenvironment by accelerating the construction of digital ofce system, promoting intelligentofce, and reducing the use of paper materials and consumables.The Company carried out the theme activity of “Acting economically and prohibiting foodand beverage waste”.In May 2022, the Company organized a signature campaign on the theme of “Actingeconomically and prohibiting food and beverage waste” and called on employees to activelyparticipate in volunteer activities to further implement the important instruction of theGeneral Secretary Xi Jinping on stopping food and beverage waste, and to establish a goodculture of civilization, health, science and conservation in the Company. During the activity,the volunteers actively guided the staff to participate in the signature activity, and promotedthe spirit of the Initiative Letter of “Acting economically and prohibiting food and beveragewaste” to the staff, so as to resolutely put the concept of frugality into practice, and striveto be the practitioner and disseminator of acting economically and prohibiting food andbeverage waste.Promotion of smart ofceWith regard to the green office culture, the Company encouraged employees to startfrom the details by saving electricity and using resources rationally, so that energy savingand consumption reduction can become the working norm. The smart ofce was furtherpromoted by strengthening the construction of information-based ofce systems, creatingstandardized intelligent meeting rooms, digital nancial systems, etc.Volunteers introduced the “InitiativeLetter” to the guests
Collective signatures of volunteers
Volunteers guided employees to sign
Initiatives of the Company to promote smart ofce (Partial)
The electronic invoice and financialelectronic le project has been put intooperation to realize the whole processmanagement of electronic invoiceand the whole life cycle managementof electronic accounting file, so as toimprove the standardization of electronicle and physical le management of theCompany.
The unified identity authenticationproject has been put into operationto realize the unied authenticationmanagement of the Company’smain business systems andhas significantly improved theconvenience and security of usersusing the Company’s systems.
The promotion project of the supplychain side of the Company’s taxsystem has been put into operationto realize business and financialcollaboration with upstreamsuppliers, and has enhanced theinvoicing experience of suppliers andimproved the efficiency of financialinvoice verication and payment.
August 2022September 2022November 2022
Safety and environmental protection training
According to the actual production and job requirements, a combination of “classroom teaching +video education + random questioning and assessment” was adopted to carry out various safety andenvironmental protection training activities.There were 16 safety and environmental protection training activities such as safety training for newemployees, Safety Production Month and World Environment Day on June 5, 36 education andtraining activities for outsiders to learn safety and environmental protection, and 9 random questionsand assessments on safety and environmental protection knowledge, achieving 100% certicationrate for personnel in three positions, 100% coverage of education and training on safety andenvironmental protection, and 100% pass rate.
Training for internal auditors of industrial chain quality and environmental management system inLuzhou Laojiao
From May 16 to 18, 2022, a training for internal auditors of industrial chain quality andenvironmental management system was organized in Huangyi Brewing Ecological Park, andexperts from the industry were invited to expound GB/T19001-2016 Quality Management Systems- Requirements and GB/T24001-2016 Environmental Management Systems - Requirements withGuidance for Use. The training was attended by more than 100 quality and environment-relatedpersonnel from the Company and the supporting enterprises of the industrial chain.The training deepened the awareness and understanding of Luzhou Laojiao and the supportingenterprises of the industrial chain on quality and environmental management system standards,increased the auditing ability of internal auditors of quality and environmental management system,and maintained the adequacy, effectiveness and appropriateness of quality and environmental system.
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Green packaging design
In the packaging design process of Baijiu products, Luzhou Laojiao insisted on the concept of green environment protection andformulated the Design Standards for Non-woven Handbags, clarifying the requirements for packaging material inspection items,acceptance standards and material selection to ensure that the packaging meets the requirements of low-carbon environment protectionin the design and production process. The classic version of Luzhou Laojiao’s brand National Cellar 1573 was optimized without changingits original packaging by removing plastic bags, changing to non-woven carry bags and choosing low-carbon and environmentallyfriendly raw materials to reduce environmental pollution.
In terms of safety assurance, the Company has passed the ISO/TS22002-4 (Food Packaging Material Certication) system certication,and has worked with a third-party audit and evaluation agency to assess the production raw and auxiliary materials of packaging materialsuppliers, the use and management of processing aids, and the environmental risks associated with the production process of packagingmaterials and the production process, and has formulated the Report on Environmental Protection Production Recommendationsfor Packaging Materials, realizing the gradual elimination and replacement of the production process or materials incompatible withenvironmental protection requirements of the packaging production process or materials. In addition, 11 safety and environmentalprotection management evaluation indicators were set in the assessment and evaluation indexes of package material suppliers to drivesuppliers to implement relevant social responsibilities.
The recycling and utilization of packagingmaterials by the Company in recent years
To reduce the impact on the environment, some of the initiatives taken bythe Company in packaging materials are
Choosing environmentallyfriendly materials for bulkraw materials or packagingmaterials with recyclingeconomic value to facilitaterecycling.
Implementing package recycling carriers, i.e.,using standard recycling carriers providedby third-party professional companies forpackaging and transferring package materialsin the process of production from packagematerial suppliers to the Company’s lling andproduction facilities. In the packaging, therecycling carrier can be reused after damage toachieve the purpose of reducing consumption.
Improving the packaging material process toreduce the use of plastic. With the applicationof a special process, Luzhou Laojiao winebottles have now eliminated most of theirplastic bags, achieving a plastic reductionof about 50 million units/year. Throughprocess improvements, it is expected that thereduction in plastic bag usage will be about30 million more by 2024.
2020
20212022
tonstonstons
688.05609.29723.81
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
In response to UN sustainable development goals *
Employees and partners contribute to the forwarddevelopment of an enterprise. With a comprehensivedevelopment system, Luzhou Laojiao providesadequate and timely support for the developmentof its employees and partners. Supported by acomplete compensation and welfare system, a soundpromotion mechanism and a safe and healthy workingenvironment, the Company has created a broad careerdevelopment space for its employees.Moreover, the Company actively supported the Party andgovernment’s rural revitalization strategy by participatingin social welfare and organizing a series of volunteerservices and effective rural twinning activities, so as tocontribute to the promotion of public charity and ruraldevelopment.
Together
NowCo-creation of Beautiful World
Together NowCo-creation of Beautiful World
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Empowerment toEmployee Growth
Employees are partners in the development of a company. It is important for anenterprise to take good care of its employees to ensure sustainable development. Withthe concept of “Talents are capital and there must be a position for a person withachievement”, Luzhou Laojiao is committed to providing employees with a safe, healthyand fair working environment and opportunities, so that employees can give full play totheir professional knowledge and skills, and create value for the enterprise and societywhile fullling their own values.Employee Statistics of Luzhou Laojiao from 2020 to 2022
In recent years, the number of employees of the Company has remained stable andslightly increased, with the proportion of female employees remaining at around 33%to 37%.In terms of educational composition, the proportion of employees with bachelor’sdegree or above gradually increased from 51% in 2020 to 59% in 2022.In the “2022 National Demonstration Activity for Creating Harmonious LaborRelations” held by the Ministry of Human Resources and Social Security, the All-ChinaFederation of Trade Unions, the China Enterprise Confederation/China EnterpriseDirectors Association and the All-China Federation of Industry and Commerce,Luzhou Laojiao was named the “National Demonstration Enterprise for Establishing
3,330people
3,434people
3,605people
1,102people
1,273people
1,295people
2,228people
2,161people
2,310people
Harmonious Labor Relations” as the only representative of wine enterprises in SichuanProvince, which was highly afrmative for the Company to establish a harmonious andwin-win labor relation with its employees for development.In addition, the Company was awarded the “Advanced Unit for Talent Work” in LuzhouCity and the “Longma Award for Attracting Wisdom - Advanced Unit” in LongmatanDistrict for its outstanding performance in cultivating talents.
Protection of Employees’ Rights and InterestsLegal and Compliant EmploymentIn accordance with the Labor Law, Labor Contract Law, Social Insurance Law, nationaland local laws and regulations and employment systems, the Company has formulateda human resource management system suitable for the Company, whereupon theCompany establishes labor relations with employees as required by law, pays the fullamount of “five insurances and one fund” (pension insurance, medical insurance,unemployment insurance, work injury insurance, maternity insurance and housingfund) under national and local regulations, and purchases supplementary pensioninsurance (enterprise annuity) and supplementary medical insurance for employees.In the recruitment and appointment, the Company avoids any employmentdiscrimination due to gender, ethnicity, religion, age, family status or other factors.Moreover, the Company prohibits the employment of child labor and forced labor,which will be reported to the law enforcement department and dealt with accordinglywithin the Company if discovered.During the reporting period, there were no cases of forced labor and child laboremployed by the Company, nor any employment discrimination.As for female employees, there is a Collective Contract Specially for Protection ofSpecial Rights and Interests of Female Employees in the Fifth Round signed betweenthe Company and them. In addition, the Company provides a nursing room forbreastfeeding employees, offers special care in maternity leave and breastfeeding, andprovides allowances for female employees who give birth to children as well as offersholiday condolences on International Women’s Day.For its excellent performance in talent recruitment, the Company was awarded the titleof “Top 100 Employers of the Year 2021 in China” in January 2022 by China AnnualBest Employer Organizing Committee of Zhilian Recruitment, and the title of “Top30 Employers of the Year 2022 in China” in December 2022 by China Annual BestEmployer Organizing Committee of Zhilian Recruitment.
National Demonstration Enterprise forEstablishing Harmonious Labor Relations
“Longma Award for Attracting Wisdom -Advanced Unit”
2022 Advanced Unit for Talent Work
Category202020212022
Total number ofemployees
Female employees
Male employees
202020212022
Employee composition
(Proportion of undergraduate and above)
51%
53%
59%
Top 100 Employers of the Year 2021in China
Top 30 Best Employers in China in 2022
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The 2nd Meeting of the 20th Workers and EmployeesRepresentatives' Meeting
Signing Ceremony of the Collective Agreement on Wages for 2023
Democratic management under lawsIn accordance with the relevant provisions of the Labor Law, the Labor Contract Law, the Trade UnionLaw and other laws, a Collective Negotiation Meeting on Wages for 2023 was organized and a Workersand Employees Representatives' Meeting was held during the reporting period, with enterprise affairs(Enterprise Affairs) disclosed through the Workers and Employees Representatives' Meeting.
In August and December 2022,the enterprise affairs disclosureactivities were carried out by theCompany’s Labor Union in theform of special enterprise affairsdisclosure meeting and Workersand Employees Representatives'Meeting, respectively, to disclosethe major matters involving thevital interests of employees, such asthe procurement of technologicaltransformation in the half-year and full-year of 2022, theuse of hospitality expenses, theimplementation of wage agreementand specific distribution, theimplementation of employee welfareguarantee system and account, andthe use of welfare expenses.
On December 23, 2022, the CollectiveNegotiation Meeting on Wages for 2023was held in which representatives of theemployees and the Company made collectiveconsultation on the Company’s CollectiveAgreement on Wages for 2023 (Draft) andAssessment and Distribution Plan for Wagesand Benets for 2023 (Draft). According tothe wage income level of the same industryand large and medium-sized enterprises inLuzhou, the provincial and municipal wageguideline, the CPI (Consumer Price Index)of the year and other relevant data, therepresentatives of the two parties reacheda consensus on issues such as job gradewages, performance bonuses, physicalexamination standards for employees andformed various draft texts to be submitted tothe Workers and Employees Representatives'Meeting for deliberation.
On December 29, 2022, the 2ndMeeting of the 20th Workers andEmployees Representatives' Meetingand the 2nd Meeting of the 18thmember representative conferenceof the Company’s Labor Unionwere held. The delegates votedby secret ballot to approve theCollective Agreement on Wages for2023 of Luzhou Laojiao Co., Ltd.(Draft) and its annex Assessmentand Distribution Plan on Wages andBenets for 2023 of Luzhou LaojiaoCo. Ltd.
Disclosure of Enterprise Affairs
Collective Negotiation Meeting
on Wages
Workers and EmployeesRepresentatives' Meeting
Development together with employeesIn 2022, focusing on the development theme of “quality improvement, culture enhancement,fast breakthrough”, the Company established a training system, enterprise knowledgemanagement system, lecturer system and course system based on the Navigation Plans to ensurethe high quality development of the Company, so as to carry out tiered and graded training andpromotion among the personnel.
The “Navigation” Plan and other training
programs
Tiered, graded, and tailored trainingManagement system for enterprise
knowledge
Transmission and iteration of enterprise knowledgeCourse system
Combination of customized courses, universalcourses and high-quality coursesLecturer system
Full-time lecturers, honorary lecturers and externallecturers to complement each otherLearning platform of Luzhou LaojiaoNetwork Business School
Unlimited learning with courses online
In 2022, Luzhou Laojiao set up systems and platforms for employee development, someof which were:
2022 China TalentManagementInnovation ModelAward
For its effective talent development work, the Company was awarded the “2022 China TalentManagement Innovation Model Award” by the China Talent Management Model EnterpriseOrganizing Committee and Beisen Research of Talent Management in December 2022.
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Smooth career path
To unlock the horizontal channel of employment movement, overcome the bottleneck of verticalpromotion, break the barrier of talent development by seniority, and satisfy the developmentneeds of staff in different professional fields, the Company has built a “dual-channel” careerdevelopment system with both management channel and professional channel in parallel, so asto “make the best use of talents and abilities, and the right person for the right job”.The Company has built a qualification system to serve as the main foundation for evaluatingand cultivating employees’ abilities, as well as to specify the requirements of different levels ofemployees in terms of their qualications and abilities.Furthermore, the Company has regulated the promotion management mechanism of employeesand claried the implementation principles, cycle and process of initial evaluation, review andpromotion evaluation. Employees can clearly understand “where they are” and how they canbe promoted vertically within the existing development channels or move horizontally betweendifferent channels.Regarding the core backbone and above, regular assessment and review of talent promotionby external experts and internal experts were conducted in a fair and scientic manner, so as torealize “there must be a position for a person with achievement”.Complete training systemWith regard to employees at different levels and in different business areas of the Company,training programs such as the Navigation Plans, the Happy Learning Plan and job qualicationcertication were organized to comprehensively and quickly improve employees’ skills, strategicvision and relevant job knowledge.
In 2022, the Company invested 9.5677 million RMB in training, with a total investment of
26.49 million RMB in the past three years; during the reporting period, there were a total of 244
training sessions at the company level of Luzhou Laojiao (the subsidiary level was not includedin the statistics), with 1971 class hours and 64,255 person. On the Network Business Schoollearning platform, the total number of students studying in 2022was 264414.56 hours, and thepass rate of the after-school test was 98.23%.
Moreover, the Company has also provided public courses and training plans for distributors,etc. to facilitate the implementation of the Company’s strategy and improve the professionalknowledge of the Company’s employees and distribution system.
[Note] In 2020, the average number of training hours per employee per year was only calculatedonline, excluding ofine data
CategoryUnit202020212022
Training courseSession206280244Special lecturesItem141010Training personPerson73,98489,03764,255Training hoursHours1,5371,8471,971Average number of traininghours per employee per year
Hours19.40
[Note]
47.8430.89
Training investment
ten-thousand
RMB
786.03906.34956.77
To become managementexecutives at all levelsof the Company byimproving managementskills and leadership
To grow into experts atthe company level andindustry level throughconstant cultivation in theprofessional eld
Management
channel
Professional
channel
The training system offered by Luzhou Laojiao in 2022 partially included:
Departure PlanSubmarine PlanVoyage planPilot programHappy Learning Plan
Training plans fornew employeesallowed them to
better performtheir job roles andbecome competent
for their positionssooner.
Key business skills andgeneral managementenhancementtraining.
To improve self-management, work
management andinterpersonal managementskills, expand the depthand breadth of professionalknowledge, and enhance
job competency.
Enhancement trainingaimed at managementvision expansion,management skillenhancement, andmanagement methodimprovement.
To improveemployees’professional skillsand work efciencyfor professionalsequenceemployees.
In 2022, the traininginvestment of theCompany was
Investment in the pastthree years reached
The accumulatedtraining reached
9.5677RMB
2,649RMB
million
million
sessions
%
Training hoursreached1,971 hours
Training person reached
64,255
Total number of studentsstudying in 2022 was
264,415
hours
The pass rate of theafter-school test was
98.23
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At the beginning of 2022, according to the requirements of 84 aspects of the 6 major sections of the Sichuan Provincial Health EnterpriseConstruction Standards, the Company has formulated the Provincial Health Enterprise Construction Work Plan of Luzhou Laojiao Co.,Ltd. and 8 work guidance sheets. Experts were invited to conduct research on the production site and health management situation ofthe Company, comprehensively sort out the health management status of the Company, and nally the rectication was completed asrequired and on time. The Company was rated as a “Sichuan Provincial Health Enterprise” after acceptance and evaluation by the expertgroup of the Health Commission of Sichuan Province and announcement by the provincial health department.During the reporting period, the Company regularly (on a quarterly basis, and in some factory areas on a monthly basis) entrustedChengdu Huace Testing Technology Co., Ltd. to conduct tests on occupational disease hazards such as noise and dust. According tothe limits of Class 2 and Class 4 in the Emission Standard for Industrial Enterprises Noise at Boundary GB12348-2008, the productionenvironment of the Company did not exceed the national prescribed limits.In 2022, there were zero production safety accidents, zero incidences of occupational diseases, and zero fatalities due to work-relatedinjuries in the Company.
The evaluation and assessment indicator system for “Sichuan Provincial Health Enterprises”consists of 8 second-level indicators, including organizational system guarantee, generalhealth environment, workplace, occupational health management and services, public healthmanagement and services, occupational health promotion and intervention, corporateculture, and social responsibility, 5 first-level indicators, and 61 third-level indicators. Inaddition, 5 basic conditions such as no major occupational health and safety accidents haveoccurred in the past 3 years should be met.
Caring for employees
The Company has taken various measures to improve the living quality of employees in terms of caring forthem besides work.In order to meet the diverse needs of life and entertainment of employees, the Company has created the“Party Mass Service Center” and “Enterprise Culture Center” and other places covering an area of over3000 square meters, providing facilities and equipment such as library, chatting room, decompressionroom, coffee bar, gym, basketball hall, etc. for employees to read, relieve stress, and exercise.
Occupational health of employeesAdhering to the concept of “people-oriented and health first”, the Company promoted the implementation of the mainresponsibility of occupational disease prevention and control management, improved the working conditions of employees,and took measures in preventing, controlling, and eliminating occupational disease hazards, so as to create the workingenvironment and working conditions conducive to employee health.In strict compliance with the laws and regulations such as the Law on the Prevention and Control of Occupational Diseasesand the Provisions on the Supervision and Administration of Occupational Health at Work Sites, the Company has installedthe protective and monitoring equipment, established personal health records, and third-party professional institutions wereregularly invited to conduct occupational disease hazard testing.With the professional committee structure of the Safe Production Committee of the Company, the Occupational Health andProfessional Safety Committee has been established to conduct unified management, monitoring, and inspection on theoccupational health and safety of employees.During the reporting period, some measures taken by the Company in terms ofoccupational health of employees include:
12 main responsible persons and occupational health management personnel of the Company were organized to participatein the 2022 main responsible persons and management personnel training for occupational health held by the LongmatanDistrict Health Commission of Luzhou City, and obtained the training certicates.Occupational health management personnel of the Company were organized to carry out 2 specialized training sessions onoccupational health management.Pre-job occupational health physical examinations were conducted for 542 people, off-the-job physical examinations wereconducted for 460 people, and on-the-job physical examinations were conducted for 1891 people. The personal monitoringles for more than 2800 occupational hazard practitioners in various departments (units) has been established and improved.Occupational health supervision has been carried out 12 times and 18 hidden dangers have been identied, all of which havebeen rectied.
The comfort and care to employees in the area were coordinated and provided, sothat non-local employees can feel the warmth of the organization.During the high temperature weather period in August 2022, the Company carriedout summer cooling activities at the grassroots level, and distributed heatstrokeprevention and cooling drugs and items to over 2000 frontline employees at thegrassroots level, so as to implement the relevant instructions and requirementsof the Emergency Notice on Strengthening the Prevention and Response toHigh Temperature Weather issued by the Office of Luzhou Municipal People’sGovernment of Sichuan Province.More than 450 employees on duty, in need, and over 80 years old were visitedduring the Spring Festival.The distribution of over 2400 sanitary supplies for female employees and incentivefunds for parents with only child were completed.Employees were organized to participate in 520 special love and marriage eventfor overseas returnees in Luzhou, Qixi Festival friend making activities and otherfellowship activities, such as “wine as a matchmaker for happiness”, whichbroadened the communication platform for single employees.
In terms of caring for employees, some measures taken by the Companyduring the year include:
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What is “Sichuan Provincial Health Enterprise”
Coffee bar at the Company’s headquarters
Employee cafeteria located at the Company’sheadquarters
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In 2022, the Company implemented dynamic management of electronic les for needy employees, with a lingrate of 100%. Employees in need were promptly provided with life assistance and medical assistance, ensuring thatthey were helped in times of need. Throughout the year, 52 families of employees in need were visited, and 1529people were approved and granted quota subsidies for difcult situations. There were 36 people receiving largeamount assistance and golden autumn education assistance, with a total amount of 722,900 RMB.
System guarantee:
The Company has formulated rules and regulations such as the Measures forManagement of Assistance Funds for Needy Employees, Measures for Subsidy of Needy Employees,and Application Process for Needy Subsidies, which have made clear provisions on the assistanceobjects, assistance conditions, assistance standards, etc., to ensure the standardization and unity ofassistance work.Mechanism guarantee:
The Company has established the assistance center for needy employees,and the assistance fund, the welfare committee, and the assistance fund management committeewere established. The working organization, assistance conditions, subsidy standards, and applicationprocess are public, and employees are welcomed to visit and supervise at any time.Regularization of assistance:
The Company currently has forms of assistance such as monthlyquota assistance, one-time large amount assistance, and golden autumn education assistance. TheCompany conducts comprehensive visits to families of needy employees, regularly conducts researchon assistance objects, assistance amounts, and implementation status, and publicly publishes theresearch results to ensure that assistance work is fair, just, and open.
In terms of employee assistance, a series of measures taken by the Company toensure the smooth progress of this work:
In August 2022, in order to effectively ensure the safe production and heatstroke prevention offrontline employees and outdoor workers in summer, the Company purchased different types of“cooling” items and sent them to the workshop and team according to the needs of employees, jobnature, and work areas, and took the initiative to do logistics support work to ensure a safe summer.
Provision of cooling supplies for frontline employees
Assisting youth employmentActively responding to the spirit of the Notice on Issuing Fifteen Policies and Measures for Further Stabilizing and Expanding Employmentissued by the People’s Government of Sichuan Province and in combination with the Company’s strategic measures of youth talentquality, Luzhou Laojiao carried out the recruitment of campus talent and summer campus ambassador.With excellent results in campus recruitment, the Company was awarded the “2022 Zhilian Recruitment On-campus Recruitment CaseAward” by the China Annual Best Employer Organizing Committee of Zhilian Recruitment.
From January to April 2022, the Companyprepared and organized the nationwidespring campus recruitment for freshgraduates of the Grade 22. The campusrecruitment has been preparing sinceJanuary 2022, and five batches of onlinerecruitment interviews were conductedfrom March to April. A total of 5199resumes were received, 1257 people wereinterviewed, 231 people were hired, and133 people were signed, with a signingrate of 57.6%. Finally, 274 fresh graduatesof the Grade 22 were introduced andsigned on in July.
2022 Spring CampusRecruitment
Since July 2022, the nationwidecampus recruitment campaignfor fresh graduates of theGrade 23 has been launched,with a demand for 340 openpositions. The Companyinterviewed over 1500 people,hired 385 people, and signed194 people through online andofine recruitment promotionsand various recruitment fairsorganized by the government.
2023 Autumn Campus
Recruitment
The Company began preparingand carrying out the summerinternship project in June 2022,providing 31 summer internshippositions for college students.Eventually, a total of 31 collegestudents were recruited tovisit the Company, cultivatedprofessional etiquette. Theywere provided employmentguidance, and started internshippractice activities in variousdepartments.
Summer CampusAmbassador Project
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Sincere service for customerInsisting on taking customers as the center and improving customer satisfaction and loyaltywith high-quality and meticulous services, Luzhou Laojiao has established the Measures forManagement on After-sales Service of Luzhou Laojiao Co., Ltd., and a series of customerservice processes and a nationwide customer service system, including customer servicehotline, WeChat ofcial account, ofcial website, ofcial agship store and other channels,so as to provide customers with services such as consultation, complaints, suggestions, etc.
From 2020 to 2022, the Company’s 400-888-1573 call center provided consumers withproblem-solving and proper resolution of consumer disputes, achieving everything issettled and everything is answered. During the period:
Promotion of win-win by partners
Win-win with suppliers
Keeping a good partnership with suppliers is one of the essential prerequisites for the Companyto achieve healthy development. In terms of supply chain management, the Company hasestablished a complete and sound work system. Guided by appropriate strategic developmentgoals, the Company always treats all suppliers with the principles of openness, fairness, andjustice.In terms of procurement, bidding and supplier selection, the Company has set up a series ofmanagement measures and rules such as the Management Rules for Procurement Subjectto Bidding According to Law, Management Rules for Supply Chain Oriented Procurement,Management Rules for Supplier Warehouse, Management Measures for Selection andAssessment of Cost Consulting Suppliers (Trial), and Management Measures for SupplierPerformance Security.In terms of supplier management, the Company has established the supplier database and isequipped with a complete supplier assessment mechanism. Luzhou Laojiao established thesupplier collaboration management platform in the company level to sort out 2000 spare partsmaterials and 3000 low-value consumables. Some supplier systems are connected with theCompany’s SRM system (namely Supplier Relationship Management), which can achieve dataintegration for purchase orders, inventory reporting, invoice reconciliation, and standard contractsigning, improve the efciency of suppliers and realize visualized procurement.
Joint Efforts forWin-win byPartners
Adhering to laws and regulations and supporting the development of local economicconstruction and social undertakings, Luzhou Laojiao keeps close strategic cooperativerelationships with suppliers and distributors, maintains positive and high-qualityinteractions with the industry, universities, and scientific research institutions, so as toachieve “co-prosperity with the industry”.
If you need to check the authenticity of Luzhou Laojiao products, please call the service hotline at 400-888-1573and select the number 2 button.If you need to contact responsible person of each province, autonomous region, city or district: The Companyhas set regional contact persons throughout the country. Customers can log in to the Company’s ofcial website,select the “Service Support” column, visit the “Contact Regional” section, and click on the page to nd the contactinformation of the regional contact person.
The Company also provides thefollowing services to customers
The call center received a
total of inquiries
The call center received a toyal ofconsumer complaints
The mediation rate101,9353,702100%Customerservice hotline
Customers can callthe hotline 400-888-1573 for assistance.
Ofcialagship store
By searching for “Luzhou Laojiao” on thetop right corner of the Company’s officialwebsite or e-commerce platforms suchas Tmall and Jingdong, you can obtain ashortcut link to enter the Company’s ofcialflagship store. You can contact us in thecorresponding store.
Companyofcial website
By inputtinghttps://www.lzlj.com/on browser, you canaccess the officialwebsite of LuzhouLaojiao for servicesand assistance.
WeChat ofcial
account
By searching “LuzhouLaojiao” on WeChat,you can follow theWechat officialaccount and nd theoption of “ContactUs” on the menu bar.
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Win-win with distributorsEstablishing a close, long-term, stable, and good cooperative relationship withdistributors to drive the continuous development of the Company.For a long time, the Company has continuously provided capacity buildingsupport to distributors, which empowers them, so that the win-win progresswith dealers can be achieved.Promotion of industry developmentWith the principle of “co-prosperity with the industry”, Luzhou Laojiao hasalways been committed to promoting the industry development, co-prosperitywith the industry, and achieving win-win results.In August 2022, the Company jointly held the “Forum on Innovation andIndustrial Development of Traditional Brewing Food Technology” with BeijingZhongliang Magazine House (the main publication China Brewing), as well asthe 40th anniversary of the founding of China Brewing and the 2022 annualmeeting of the National Engineering Research Center of Solid-state Brewing.The convening of this annual meeting provided new ideas and solutions for theintelligent transformation and upgrading of traditional brewing food, whichis conducive to exploring scientic issues in the development of the traditionalbrewing industry, strengthening the trend guidance of development direction,and promoting production technology innovation and high-quality developmentof China’s traditional brewing food industry through technology empowerment.
Group photo of the meeting
Academicians and experts gathered in Luzhou to seek newdevelopment
From August 19 to 21, the “Forum on Innovation and IndustrialDevelopment of Traditional Brewing Food Technology”, as well asthe 40th anniversary of the founding of China Brewing, and the2022 annual meeting of the National Engineering Research Centerof Solid-state Brewing were held in Luzhou, sponsored by BeijingZhongniang Magazine House, the National Engineering ResearchCenter of Solid-state Brewing, and co-organized by Beijing FoodScience Research Institute and Luzhou Laojiao Co., Ltd.More than 400 participants from more than 100 colleges anduniversities, including the University of Chinese Academy ofSciences, the Chinese Academy of Engineering, Zhejiang University,Shanghai Jiao Tong University, Sichuan University, South ChinaUniversity of Technology, China Agricultural University, JiangnanUniversity, and enterprises such as Shanxi Xinghuacun Fen WineFactory Co.,Ltd., Anhui Gujing Group, Co.,Ltd. etc.There were three sub-themes of Baijiu, condiments and wine onthe forum, and experts and scholars attending the forum carriedout more than 60 special reports, comprehensively and deeplydiscussed and exchanged views on brewing technology andindustrial development.Liu Miao, Secretary of the Party Committee and Chairman of theCompany, stated in his speech that Luzhou Laojiao adhered toinheritance and innovation, relied on innovative platforms such asthe National Engineering Research Center of Solid-state Brewingand the National Postdoctoral Research Workstation, strengthenedtechnological research and development, built a strong talentteam, promoted achievement transformation, and strengtheneddigital intelligence empowerment to successfully build the largestand most intelligent modern Ecological Park for Huangyi Brewingin the industry.In addition, relying on the platform of the National EngineeringResearch Center of Solid-state Brewing established by LuzhouLaojiao, the Company collaborated with 18 leading enterpriseswith solid state brewing characteristics, advantageous universitiesand institutions, and technological innovation service institutionsto successfully establish the Sichuan Engineering ResearchCenter of Solid-state Brewing. The center is the first provincial-level technological innovation center in the field of solid-statebrewing in China, and will be committed to serving major
Luzhou Laojiao
? Guojiao
1573 Research
Institute
Distributors training
11sessions
VIP customer training fornational cellar tours96 sessions
Training hours67 hours
Training hours
144 hours
Covering distributors3,163 persons
Trainees3,054 persons
The national cellar tourtraining trip project wasorganized and carried out. In
2022, there was a total of
The Company has launched adistributors training program tocreate an integrated collaborativeteam with manufacturers.In 2022, there was a total of
technological needs of the industry, research and developmentof key common technologies in solid state brewing, the transferand transformation of technological achievements, as well asthe opening and sharing of technological services, formed aninnovative ecosystem of the solid-state brewing industry.Luzhou Laojiao ? Guojiao 1573 Research Institute
Luzhou Laojiao ? Guojiao 1573 Research Institute (hereinafterreferred to as the “research institute”) is a research, consulting,service, and non-profit enterprise think tank initiated andestablished by Luzhou Laojiao. With the purpose of “building aresearch platform”, “uniting a group of senior consultants” and“outputting a series of research results”, the research instituteis committed to building a think tank platform of “big strategy,big platform, big wisdom, and big culture”, promoting thetransformation and upgrading of Chinese Baijiu industry, boostingthe industry development with high quality, and leading theindustry to a stable future.Since establishment on October 15, 2021, the research institutehas achieved significant results in improving institutionalmechanisms, focusing on the Company strategy, conductingresearch projects with cohesion and intelligence, and providingservices to empower brand development. It has graduallyestablished a strategic demand-oriented research system andachieved phased results under the guidance of experts andscholars from all walks of life.In the future, the research institute will continue to gather thestrength of high-end think tanks, adhere to the three majordevelopment principles of brand leadership, quality foundation,and cultural soul casting, and help build the “six in one” LuzhouLaojiao of brand, quality, culture, innovation, digital intelligence,and harmony.
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Luzhou Laojiao Appeared at the 17th China International Alcoholic Drinks ExpositionFrom July 15 to 17, 2022, the 17th China International Alcoholic Drinks Exposition was held in the wine cityof Luzhou. The Company set up an independent exhibition hall at this expo, showcasing the highly recognizedproducts of Luzhou Laojiao, such as Guojiao 1573, Centennial Luzhou Laojiao Jiaoling Baijiu, Luzhou Laojiao Tequ,Tequ 60s, Gaoguang, and Ming Niang.At the Expo, Luzhou Laojiao innovatively displayed Luzhou Laojiao’s wine culture with new forms of science andtechnology as the display carrier, which was not only a collision between science and technology and tradition,but also established a new image of Chinese Baijiu in science and technology, leading innovation and creating thefuture together.
Zhong Mian, Vice Chairman of the Sichuan ProvincialPolitical Consultative Conference, Song Shuyu, Chairmanof the China Liquor Industry Association, Yang Linxing,Secretary of the Luzhou Municipal Party Committee, andothers visited the Luzhou Laojiao Exhibition Hall
Luzhou Laojiao Exhibition Hall
In January, March and June Langjiu Group, Moutai Group and Yanghe Group respectively led teams tovisit Luzhou Laojiao and carry out investigation and exchange, in order to seek high-quality developmentof Chinese Baijiu industry.In June The “11th Chinese Baijiu T8 Summit” was held in Luzhou, where leading liquor enterprisessuch as Moutai, Wuliangye, Yanghe, Luzhou Laojiao, Fenjiu, Gujing, Langjiu, Niulanshan, etc. gatheredtogether to provide advice and suggestions for industrial development, and reached many consensuses.In July Luzhou Laojiao and Kylin Spirits Group ofcially signed a strategic cooperation agreement on theChinese whiskey project, further deepening communication and cooperation between the two sides.
In 2022, the Company engaged in extensive and in-depth cooperation with varioussectors of the industry, including:
◆◆◆
Promoting school enterprise cooperationUniversities are one of the important birthplaces of innovation. With the goalof continuously promoting the high-quality development of the Company, theCompany invested a lot of resources in cooperation with universities.
In 2022, the Company also collaboratedwith other parts such as universities:
The project Analysis and ApplicationResearch on the Core Elements of StrongAroma Brewing Ecology has been signedin cooperation with the Chengdu Instituteof Biology, Chinese Academy of Sciences,Sichuan University, and Sichuan ProvincialInstitute of Food Inspection. The research iscurrently underway.We held technology demand contactmeetings and seminars on the utilization ofdistiller’s grains resources with institutionssuch as the Afliated Hospital of SouthwestMedical University, the Chinese Academyof Sciences, and Huazhong University ofScience and Technology.The Company collaborated with SichuanUniversity and Qianhe Condiment andFood Co., Ltd. to tackle key challenges suchas poor controllability in the traditionalbrewing food industry community.The Company cooperated with JiangnanUniversity in the field of brewingmicroorganisms, deeply studied thetraditional brewing process mechanism ofstrong aroma Baijiu and the influence ofcellar age on the quality of cellar mud andbase liquor, established a multidimensionalevaluation method for cellar mud qualityand cellar age by using large sample ofmicrobiological data, and developed anefficient enrichment method of functionalflora and a new technology of artificialcellar mud culture.
Established jointly by the Company and Tsinghua University in 2019. Thecenter will make new theoretical and technological breakthroughs in the fieldof intelligent detection and traditional process data mining, providing a newframework and ideas for the technical issues of “internationalization andstandardization” in traditional industries. By the end of 2022, the center enteredits third year and has completed the second batch of projects. The third batch ofprojects is currently underway.
Tsinghua University - Luzhou Laojiao Intelligent Testing Joint Research Center
Established jointly by the Company and Nanjing Normal University in 2019, it isa new type of production university research cooperation platform to deepenBaijiu culture and scientic and technological innovation. By the end of 2022, thecenter was operating well, with 6 projects underway during the year.
Luzhou Laojiao - Nanjing Normal University Cultural and Technological
Innovation Research Center
Established jointly by the Company and Sichuan University in 2021. Theestablishment of the center not only provides a high-level talent training platform,but also will inevitably improve the scientific research level of Luzhou Laojiaoand expand the depth of cultural research, which will play an invaluable role inaccelerating the research of the whole Chinese Baijiu industry. The first sevenprojects have been approved by the Central Management Committee.
Sichuan University - Luzhou Laojiao Culture and Technology Innovation
Research Center
Established jointly by the Company, Shanghai Jiao Tong University, and VACUREBiotechnology in 2022. By the end of 2022, the center organized 3 tripartitediscussions on “Shanghai Jiaotong University-VACURE Biotechnology - LuzhouLaojiao”, formed a joint agreement on the construction of a “Joint ResearchCenter for Gastrointestinal Health of Drinking Population”, and launched two rstphase cooperation projects.
Joint Research Center for Gastrointestinal Health of Drinking Population
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Enthusiasm aboutSocial Welfare
Only by shouldering a sense of social responsibility can enterprises achieve stability andlong-term development. Throughout its history, Luzhou Laojiao has always adhered to thecorporate philosophy of “liquor brewed with the universe, spirit generated by the world”,and has been actively engaged in various public welfare activities such as earthquake relief,donation for education, and volunteer service, with a continuously growing economicvolume to give back to society. It has taken on the important mission of serving nationalstrategies and people’s livelihoods.In 2022, the Company actively participated in public welfare student assistance activitiessuch as “Charity Day Donation”, “Small Schoolbags, Great Love”, and “Provincial PovertyRelief Fund”. It continued to support multiple high and secondary schools to establishvarious teaching and research, student assistance, and scholarships, and donated a totalof RMB 3.21 million to support the development of local education. In recent years,it has won honors such as the “Chinese Charity Award”, “Chinese Red Cross Medal”,and “Advanced Grassroots Party Organization for Earthquake Relief in Luxian County onSeptember 16”.Provincial Poverty Relief FundThe “Provincial Poverty Relief Fund” is a large-scale public welfare project initiatednationwide in July 2001 by the Sichuan Poverty Alleviation Foundation incollaboration with relevant units, with the care and support of relevant leaders ofthe Sichuan Provincial Party Committee and the Provincial Government. It is aimedat assisting and cultivating students from universities with excellent moral characterand poor families.
Accumulated donations in 2022
Luzhou Laojiao-Red Camphor Award Teaching Fund
From 2021 to 2025, Luzhou Laojiao donated funds to establish the “Red Camphor AwardTeaching and Learning Fund” at Sichuan Province Luzhou Senior Middle School. Thefund was divided into the “Luzhou Laojiao-Red Camphor Seedling Protection Award”scholarship and the “Luzhou Laojiao-Red Camphor Teaching Master Award” scholarship.The former provided assistance to students with excellent moral character and familydifculties, inspiring them to work hard, pursue their dreams diligently, and strive to fullltheir dreams. The latter provided assistance to teachers with excellent ethics, outstandingperformance, and outstanding scientic research, helping the teaching team better fulllthe sacred mission of cultivating morality and educating people.
3.21million RMB
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Support forRural Revitalization
Luzhou Laojiao firmly implemented the national strategic deployment andactively engages in the main battleeld of rural revitalization. Since 2016, LuzhouLaojiao has taken the initiative to undertake poverty alleviation and assistancetasks for three poverty-stricken counties and 18 poverty-stricken villages inHongyuan County, Aba Tibetan and Qiang Autonomous Prefecture, Sichuan,and Gulin County and Xuyong County, Luzhou City, located on the easternedge of the Qinghai Tibet Plateau. The Company and its partners invested anddonated a total of 720 million RMB in assistance funds, building infrastructure,strengthening industries, and assisting governance, promoting the removal ofall poverty-stricken counties and the withdrawal of all poverty-stricken villages.The targeted areas were lifted out of poverty with high quality and on schedule,and were awarded the National Advanced Collective for Poverty Alleviation, theNational Advanced Collective for Social Poverty Alleviation, and the exemplaryorganization of the “Five Ones” Support Force for Poverty Alleviation in SichuanProvince.
After the comprehensive victory of the poverty alleviation campaign, theCompany continued to explore and optimize assistance measures. In 2022,a total of 2.5515 million RMB was invested in assistance funds to help ruralrevitalization. Through purchase instead of donation, industrial assistance, andintellectual assistance, the Company consolidate and expand the achievementsof poverty alleviation, comprehensively promote rural revitalization and achieveresults. It was awarded the “Advanced Collective for Designated AssistanceWork” in Sichuan Province.
The Company organized new high school graduates from Xiangtian Village inLongshan Town to visit Luzhou Laojiao and carried out the theme expansion activityof “Love Forges Dreams, Passion Ignites Future, and Shared University Dreams”
Granting nancial aid to assisted studentsA brand new Xiangtian Village
Industrial assistance for the “rice eld sh farming” project
Launch New Year condolences
Symposium on Rural Revitalization Work
Donate through purchaseSince 2016, the Company andits partners have cumulatively
invested and donatedassistance funds
720 RMB million
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In 1996, the Ming Dynasty cellar of Luzhou Laojiao, founded in 1573, was designated bythe State Council as a “National Key Cultural Relics Protection Units”. At this time, LuzhouLaojiao Exhibition Gallery, the predecessor of Luzhou Laojiao Museum, was officiallycompleted and opened to the public in the office building of Luzhou Laojiao Hotel,becoming one of the rst enterprises in the Chinese Baijiu industry to have exhibitiongallery.In 2004, the Luzhou Laojiao Exhibition Gallery was relocated to the newly opened LuzhouLaojiao Tourist Area. In 2021, the exhibition gallery was upgraded to Luzhou LaojiaoMuseum and the upgrading and renovation would be initiated. After the upgrade, thenewly arranged museum has an exhibition area of nearly 1,000 square meters.
The exhibition in the museum is divided into three parts. The rst part emphasizestradition and showcases the historical origins of Luzhou liquor culture. The secondpart is a re-continuation, showcasing the legendary story of Luzhou Laojiao. The thirdpart is re-passed down, showcasing the fruitful achievements of Luzhou Laojiao’sdevelopment over the years.The Luzhou Laojiao Museum currently has a large number of precious historical winevessels, literature, old wine, and image materials. The collections include only 118bronze goblets from the Shang Dynasty with the inscription “Tian Bian Fu Geng”,only over 300 blue and white goblets of Yuan Dynasty, underglaze red heart turninghigh foot cups of Yuan Dynasty, and a dragon and phoenix patterned blue and whitelarge wine tank of the same age as the national treasure cellar of Ming Dynasty inLuzhou Laojiao.
Inheritance ofIntangibleCultural Heritage
Luzhou Laojiao Museum
Continuously conducting comprehensive and systematic research on theconnotation of the world, China, and Luzhou Laojiao liquor culture, andpublishing monographs such as National Cellar Archives - Appreciation ofCalligraphy and Painting Art, National Cellar Archives - Appreciation of OldLiquor Collection, and National Cellar Archives - Customized Art of LuzhouLaojiao;Through national archaeological institutes, the Company participated ineld archaeological excavations and reproduce the Longyao site during theTang and Five Dynasties period, the Southern Song Dynasty tomb stonecarving site, the Han tomb site, and the Ming Dynasty tomb site;The protection of cultural heritage was strengthened, and the constructionof museums and their supporting facilities were based on national keycultural relics protection units for protection and display.
For many years, the Company has formed a dedicated team tostudy liquor culture and established the rst professional culturaland museum team dedicated to the domestic liquor industry:
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Professional Committee for Baijiu Brewing Skills of China Intangible Cultural Heritage Protection Association was ofcially establishedOn July 15, 2022, the establishment meeting of the Professional Committee for Baijiu Brewing Technology of the China Intangible CulturalHeritage Protection Association, hosted by the China Intangible Cultural Heritage Protection Association and undertaken by LuzhouLaojiao, was successfully held in Luzhou, the wine city. The establishment of the Professional Committee for Baijiu Brewing Technologywas aimed at building a platform for cohesion and seeking the inheritance and development of intangible heritage for Chinese Baijiu.
As the only member organization of the China Museum Association in the industry, Luzhou Laojiao built museums, created a professionalcultural and museum team, deeply explored the history and culture of Chinese liquor, and driven other liquor companies to buildmuseums, strengthening the protection of the diversity of liquor culture. In this cultural environment, Luzhou Laojiao Museum born theresponsibility of preserving traditional values and inheriting historical culture with a platform for the public to understand traditionalliquor culture.
Advocation ofResponsibleDrinking
Luzhou Laojiao emphasizes the promotion of responsible drinking, integrating theconcept of “caring for growth and not drinking for under age” into brand promotionactivities, and promoting moderate, rational, scientic, and healthy drinking methodsto consumers. Since 2015, the Company has continuously carried out the “NationalRational Drinking Promotion Week” activity, committed to making rational drinking,healthy drinking, and civilized drinking become new cultural characteristics of theChinese liquor industry, allowing consumers to harvest happiness and enjoy a high-quality and beautiful life through healthy drinking.Luzhou Laojiao Launches “2022 Responsible Rational Drinking Promotion Week”In December 2022, as the rotating chairman organization of the China Liquor IndustryAssociation and Social Responsibility Committee, the Company collaborated with theChina Liquor Industry Association to launch the “2022 Responsible Rational DrinkingPromotion Week” activity, with the theme of “caring for growth and not drinking forunder age”, aiming to call on society to care for the growth of under age and say “no”to their drinking. Moreover, the theme activity of “Ten Thousand Shops Promise Notto Sell Alcohol to under Age” was carried out at online and ofine alcohol terminalsnationwide, to effectively fulll the social responsibility of the alcohol industry throughpractical actions.
The Luzhou Laojiao Scenic Area was selected for the list of national industrial tourism demonstrationbases announced by the Ministry of Culture and Tourism, and the “National List of Selected Projects forthe Integration of Intangible Cultural Heritage and Tourism” announced by the China Intangible CulturalHeritage Protection Association.The Luzhou Laojiao Sealing Ceremony was selected as a representative project list of the sixth batch ofprovincial intangible cultural heritage released by the Sichuan Provincial Department of Culture and Tourism.The case of Luzhou Laojiao’s “cultural tourism integration intangible cultural heritage casting soul” wasselected as an excellent case of Sichuan intangible cultural heritage and tourism integration in 2022.
Taking the inheritance of intangible cultural heritage as its own responsibility,some of the honors obtained by the Company’s intangible cultural heritageinheritance work in 2022 include:
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A good corporate governance can strengthenthe internal control of an enterprise, reduce itsoperating costs, improve its business performance,enhance its core competitiveness to realize itssustainable development. By adhering to theleadership of Party building and deepening the three-year action of state-owned enterprise reform, LuzhouLaojiao empowered corporate governance withtechnology and continuously enhanced its ability toanticipate and resist various risks to promote the leandevelopment of the enterprise with high efciency.
In response to UN sustainable development goals*
Coexistence
of Interests
Co-creation of Excellent Brand
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The Party Committee of the Company deeply implemented the spirit of the 20th NationalCongress of the Communist Party of China, focused on the overall requirements of Party buildingin the new era, closely adhered to the development goals and tasks of the enterprise during the14th Five Year Plan, took integrated development as the path, coordinated and promotes politicalconstruction, ideological construction, organizational construction, discipline construction, andother work, achieved deep integration of Party building and production and operation, and leadthe high-quality development of the enterprise with high-quality Party building.Strengthening political construction
The Party Committee of the Company adhered to the fundamental attribute of “state-ownedenterprise under the leadership of the Party”, continued to implement the “two-consistency”,continuously strengthened political construction, guided Party members, cadres, and employeesto deeply understand the decisive signicance of the “two-establishment”, enhanced the “four-consciousnesses”, strengthened the “four-condences”, and achieved the “two-maintenance”.
The Company organized all Party members, cadres, and employees to watch the opening meeting ofthe 20th National Congress of the Communist Party of China
The Company organized grassroots Party organizations to actively study and implementthe spirit of the 20th National Congress of the Communist Party of China
The Fourth Luzhou Laojiao Micro Party Course Competition“Welcoming the New Journey of the 20th National Congress of theCommunist Party of China and Achieving Merit in the New Era”
Strengthening ofLeading Role of PartyBuilding
Strengthening theoretical armed forces
The Company’s Party committee system established a long-termmechanism for learning and implementing president Xi’s socialistideology with Chinese characteristics in the new era, whichincludes “Party committee leading learning, branch promotinglearning, and all staff giving lectures”. Focusing on the theme ofwelcoming, promoting, and implementing the spirit of the 20thNational Congress of the Communist Party of China, the Companyorganized expert guidance and report meetings, special lectures,and experiential learning activities, and carried out the fourth “MicroParty Class” grassroots propaganda competition in a brandedmanner. The Party Committee of the Company strictly implementedthe “rst issue” system, and the team members demonstrated andtook the lead in their respective elds of responsibility. Each Partybranch, based on the actual situation of the team, promoted thespirit of the 20th National Congress of the Communist Party ofChina to enter the workshop, team, area, and mind by conducting“Mobile Party School”, “On-site Learning Sessions”, and “QuarterHour Classroom”, guiding Party members, cadres, and employeesto rmly arm their minds with the ideology of learning and levelingsocialism with president Xi’s socialist ideology with Chinesecharacteristics in the new era, guiding practice Promote work andpromoting the implementation and effectiveness of the deploymentrequirements of the 20th National Congress of the CommunistParty of China in the Company.
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Boosting the integration of Party leadership into corporate governance
The Company conscientiously implemented the 40 key tasks of “looking back” arrangement and deployment, fullyimplemented pre-requirements researched and discussed by the Party committee, completed the “Party building to rules”for all eligible independent legal entity level 2 and 3 enterprises, and completed the “shoulder to shoulder” task for alleligible Party branches. By formulating the Implementation Measures for the Three key Points and One Large DecisionSystem (Trial) of the Company, the Company sorted out and claried the list of rights and responsibilities for each matter,ensuring that the “three meetings and one layer” perform their respective duties, responsibilities, and coordinatedoperations, and that the leadership of the Party is integrated into the Company’s governance mechanism, effectivelyplaying the role of the Party committee in guiding direction, managing the overall situation, and ensuring implementation.
Managing political life within the Party
The Company strictly implemented the basic systems of “Three Meetings and One Lesson”, heart to heart talks,democratic evaluation of Party members, xed Party day activities, and dual organizational life for leaders and cadres.It deeply carried out activities such as “political birthday”, revisiting the oath of joining the Party, and “I do practicalthings for the people”, continued to strictly enforce organizational discipline, standardize Party member managementas well as promoted the improvement of Party spirit.
The Company normally organized and held the meeting of the Party Committee
A “Three Meetings and One Lesson” notebook was developedActivities to review the oath of joining the Party were organized
Strengthening ideological construction
Luzhou Laojiao adhered to laying the foundation of ideology, combined with theannual development theme of the Company, strengthened work innovation, andexerted cohesion to provide strong ideological guarantee and strong spiritualstrength for strengthening, optimizing, and expanding state-owned enterprises,and promoting high-quality development.
2022 “Searching for Drunken Luzhou Laojiao” Photography Award Winning Exhibition
The theme activity of “Our Festival - Dragon BoatFestival” was carried outDeepening publicity work and ideological and political education
By establishing and utilizing Party building propaganda platforms and platforms,the Company launched over 200 promotional campaigns such as “state-ownedenterprise responsibility” and “branch style”. It diversified the use of variousonline propaganda platforms, Party member positions, blackboard newspapers,and other promotional ideas to spread positive energy and create a strong Partybuilding atmosphere. During the year, the Company organized the “Welcomingfor the 20th National Congress of the Communist Party of China and AchievingMerit in the 14th Five Year Plan” to search for the Drunken Luzhou Laojiao,selected over 60 outstanding works, and encouraged and guided Party members,cadres, and employees to firmly believe and inherit the red gene; Carry outimmersive learning and experience activities such as “Our Festival - Dragon BoatFestival” with distinctive corporate characteristics to promote and promote
excellent traditional Chinese culture, and cultivatea good spiritual outlook. The Company regularlycarried out care activities such as “four necessarytalks and four necessary visits”, employees’ideological dynamic research, and employees’psychological classification counseling to create awarm and inspiring organizational atmosphere,effectively laying an ideological and mass foundationfor the harmonious and stable development of theenterprise.
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Strengthening organizational construction
The Company continued to strengthen organizational construction, with a focus on improvingorganizational strength, focusing on grassroots and consolidating the foundation. It alwayspromoted Party building work and production and operation coordination, allowingorganizational strength to be organically embedded and strongly driven in key tasks such asproduction innovation, marketing breakthroughs, and management upgrades, transforminginto the driving force for enterprise development.Building a rigorous organizational networkFocusing on tangible and effective coverage, the Company dynamically set up Partyorganizations in major projects, sales areas, and other areas, adjusted Party cadres and staffin a timely manner, ensured that “everything that should be built was built”, improved theorganizational system, and enhanced work strength. The Company deepened the creation ofParty building brands, promote grassroots Party organizations to rmly grasp the rst priorityof “service development”, focused on the key points, difculties, and key points of businesswork, identied the focus and driving force of Party building work, and achieved Party buildingleadership to promote development as well as business integration to increase momentum.
Building a strong vanguard and exemplary teamIn order to implement the requirement of “two-way training”, the Company recruited 30 Party members among frontline and backboneemployees in production and operation throughout the year, established 605 Party member demonstration positions and 120 Partymember vanguard teams, and fully devoted themselves to key business actions such as the “Hundred Cities Plan in Sales” and the“Intelligent Packaging Center Project”, effectively tackling and implementing annual target tasks.
The Party building brand of theCompany’s Party Committee was awardedthe top ten Party building innovationdemonstration brands in 2021
A vanguard team ofParty members on themarketing front linewas established
Luzhou Laojiao strictly adhered to the requirements of the Company Law, Securities Law,Code of Corporate Governance for Listed Companies, as well as relevant laws and regulations,departmental rules, and normative documents. Based on the actual situation of the Company,it continuously improved the modern enterprise system construction and corporate governancestructure of the Company, and continuously improved the level of corporate governance.
Optimization ofCorporateGovernance
General Meeting of ShareholdersStructure of the Company‘’s Board of Directors
Governance structure
In accordance with the Company Law and relevant regulations on corporate governancefor listed companies, the Company continued to improve its governance structure, withthe General Meeting of Shareholders as the highest authority, the Board of Directors, theBoard of Supervisors, and the management team having clear and balanced powers andresponsibilities. The Board of Directors has a Strategy Committee, a Nomination Committee,an Audit Committee, and a Compensation and Assessment Committee. It established variousgovernance systems and formulated corresponding rules of procedure around the operationof the three committees, further claried their respective powers and responsibilities, ensuringthat the General Meeting of Shareholders, Board of Directors, and Board of Supervisorsexercise decision-making, decision-making, and supervisory powers, enhancing theindependent operation and mutual supervision level of the three committees as well as fullyprotecting the legitimate rights and interests of shareholders.
Board of Directors
AuditCommittee
StrategyCommittee
NominationCommittee
Compensationand AssessmentCommittee
Management layer
Board of Supervisors
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The Company held two generalmeetings of shareholders byonline video conference anddeliberated 30 proposals in2022. The Company has becomeone of the listed companiesthat held the general meetingsof shareholders online earlier inSichuan.
The Board of Directors of the Company has11 directors, including 4 internal directors,4 independent directors and 3 externaldirectors, including 2 female directors.In 2022, the Company held meetingsof Board of Directors for 14 times anddeliberated 66 proposals. The Companyheld 13 meetings of Special Committee ofthe Board of Directors and deliberated 20proposals.
The Board of Supervisorsof the Company has fivesupervisors, including twoemployee supervisors.In 2022, the Companyheld meetings of Boardof Supervisors for 9times and deliberated 18proposals.
General Meeting ofShareholders
Board of DirectorsBoard of Supervisors
Information disclosureLuzhou Laojiao established a reasonable information disclosure regulation management system in strict accordance with therequirements of China Securities Regulatory Commission, Shenzhen Stock Exchange and other rules, regulations, guidelines andmeasures, with all systems effectively executed; Luzhou Laojiao strengthened the process of collection, feedback, sorting andreview of major information, promoted the institutionalization, process and formalization of information disclosure to make theinformation disclosure responsibility specic to people and things. Under the precondition of legal compliance, Luzhou Laojiaoreasonably strengthened the pertinence of information disclosure to ensure true, accurate and complete, timely and fair disclosure,and continuously improve the transparency of the Company information disclosure.
Investor relationsLuzhou Laojiao insisted on carrying out investor exchange activities with the mode of “investment promotion” and “go out”. TheCompany fully communicated with investors with regard to hot issues in the industry, the Company’s development strategy andoperating conditions through all channels, such as field research, investor meeting, investor interaction platform of ShenzhenStock Exchange, investor hotline and collective reception day activities, with a view to realizing effective communication betweenlisted companies and investors and market stakeholders. The Company extensively listened to investors’ opinions and suggestions,regularly prepared reports on analysis of investors’ suggestions and key issues, and transmitted investors’ voices to management andrelevant functional departments of the Company, thus boosting continuous improvement of management level in the Company.
2022The Board of Directors of theCompany actively fulfilled theinformation disclosure obligation,with regular reports and interimreports prepared and issued.
In the information disclosureassessment of listedcompanies in Shenzhen StockExchange, for many years,the Company has obtained
During the year, concerning information disclosure, for the Company:
Interaction of Shenzhen
Stock ExchangeNumber of questions replied126 piecesThe response rate is up to
98.44%
Consulting telephoneof questions frominvestors
over 700 times
Holdonline performancebriengs for1 times
Participate inCollective ReceptionDay Activities for ListedCompanies for
1 times
Total 131 reports
the highest grade
A level
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Shareholder return
Consistently following the concept that “only by highlighting thereasonable return on investment to investors and maintaining thecontinuity and stability of profit distribution can the sustainabledevelopment of enterprises be realized”, Luzhou Laojiao activelyimplemented the prot distribution policy and balanced shareholdersreturn and sustainable development of the Company. The cash bonusratio of the Company has been up to 100% without transferring itsshare capital in recent years.
Reform of state-owned enterprises2022 is the year when the 20th CPC National Congress and the 12th Congress of PartyRepresentatives of the province are held, and it is also the closing year of the three-yearreform of state-owned enterprises. Luzhou Laojiao developed amid endeavors and wasreborn amid change, providing the strength of state-owned assets and state-ownedenterprises for Luzhou to implement the characteristic development strategy of “one bodyand two wings” and build a regional central city in the new era.In 2022, under the guidance of political construction, centering upon the Party Committee,the Board of Directors and the Manager’s Office Meeting, Luzhou Laojiao continued todeepen the reform of governance mechanism, employment mechanism and incentivemechanism, improved the digitalization, accuracy and professionalism of managementand boosted the overall leap of enterprises, being selected as one of the rst batch of keyenterprises in the national special action of “reform of construction of industrial workers”of light industry. In addition, it was also included in the list of 100 enterprises of SichuanFederation of Trade Unions concerning the “Thousand Enterprises Action” to deepen thereform of construction of industrial workers in Sichuan Province.
It was selected as one of the first batchof key enterprises in the special action ofdeepening the reform of construction ofindustrial workers in China light industryin 2022.
The Company followed the development theme of “quality improvement, culture enhancement, fast breakthrough”, andmobilized all staff to fully participate in and implement various reform tasks of the Company in business management,talent selection and incentive innovation. In addition, the Company vigorously broke through system and institutionalobstacles, and achieved leap-forward development.Reform ofgovernancemechanism
The Company launched the restricted stock incentive plan in 2021 to further establish and improve the Company’slong-term incentive mechanism, attract and retain outstanding talents, fully mobilize the enthusiasm of the Company’smanagement and core personnel, effectively combine the interests of shareholders, the Company’s interests and thepersonal interests of the core team, and make all parties pay close attention to long-term development of the Company.500 management and core key personnel participated in this restricted stock incentive plan in total, with 7,297,603restricted shares granted.Reform ofincentive
The Company actively cultivated a team of high-quality and high-skilled talents and carried out reform in the talentselection system and management mechanism. The results of the reform of employment mechanism are as follows:
The Company implemented special actions such as “Thought Leads the Project of Casting Soul” and “Skill-basedLaojiao” within the Company, and made full endeavors to effect the reform measures, with the two-way empowermentof the “reform of construction of industrial workers” realized.The Company reformed the tenure system and contractual management of managers in subsidiaries. In 2022, contractsigning of total 37 managers from 22 subsidiaries of the Company was completed, and the cadre management waschanged from “horse judging” to “horse racing”, with a post management system connecting top to bottom formed.
Reform ofemploymentmechanism
Net protattributable toparentTotal cash dividends
19942001200820152021YearYearYearYearYear
Dividend details over the yearsUnit: hundred million RMB
Since listing in 1994cumulative distribution ofcash bonus of
29.133 RMB billion
total bonus rate up to
52.30%
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Construction of a clean and honest administrationIn 2022, for important areas and key links of production logisticssupport, comprehensive management and marketing, the Companyconducted normal supervision and forward supervision on productionand operation management activities such as asset purchase,assessment and settlement, restructuring and reform. The Companyalso formulated the Regulations on Management of Honest Practicewhich made detailed provisions on anti-bribery, anti-corruption andhonest practice behavior norms, implementation and supervision, andclaried the handling methods for different levels of incidents.In 2022, through comprehensive mobilization, signing the Letterof Commitment to Integrity, unblocking the feedback channels ofpartners’ clues, and re-checking personnel information, the Companyorganized employees and cooperative partners to carry out self-inspection and self-correction for 266 times, with integrity risksprevented and resolved promptly and violations of discipline preventedfrom the source.
With focus put on targeted efforts, the Company effectivelyprevented and controlled integrity risks, and boosted normaland long-term management of integrity risks.
The Company participated in the speciallecture of State-owned Assets Supervisionand Administration Commission of Luzhou
National Cellar · Lasting BouquetLuzhou Laojiao earnestly implemented the spirit of Opinions on Strengthening the Construction of Clean Culture in the New Era issuedby the General Ofce of the Central Committee and built a brand of clean culture centering upon “National Cellar · Lasting Bouquet”and focusing on “those who are good at brewing are honest, those who are good at operation are upright, and those who are goodat handling affairs are righteous”, with clean genes deeply planted in enterprise management to enhance work style of personnel in theCompany. In 2022, the Company made continuous efforts to deepen the construction of family tradition, and cooperated with primary-level Party branches and trade unions to implement a clean home visit themed with “Clean Practice Brings Warm· Family TraditionPromotes Integrity”. Through talking about family matters, visiting families, inspecting family tradition, warning risks and presenting “familyintegrity assistance package”, the Company’s staff and their relatives were guided to pay attention to the cultivation of family tradition,thus cultivating clean, responsible and upright style with good family tradition.
Luzhou Laojiao held the second “910 · Integrity" Clean Culture FestivalFocusing on the brand of clean culture of “National Cellar · Lasting Bouquet”, the Company held the second clean culture festival with thetheme of “Clean Individuals· Harmonious Family · Prosperous National Cellar”. Staff actively participated to feel the clean culture, feel theinuence of clean culture and enhance their sense of self-integrity through online and ofine activities such as script interpretation, cleanpublicity and clean co-construction.
Family integrity assistance packageSignature of Family Tradition Initiative Wall
Carried out 12 sessions of “monthly study” conference with the theme of integrity education.Conducted 64 special trainings on integrity for new recruits, new Party members, new promotion personnel andpersonnel at posts with major integrity risks.The Discipline Inspection Commission of the Company improved 150 personal integrity les dynamically and issuedintegrity review opinions of 978 persons-times, and organized the signing of integrity co-construction agreements with 1,896business entities. Organized integrity talks of over 12,000 persons. Organized the study of warning education books and warning education lms for 105 times.
Integrity Education of the Company in 2022 (Partial)
those who are good atbrewing are honestthose who are good atoperation are uprightthose who are good athandling affairs are righteous
Clean Practice Brings WarmFamily Tradition PromotesIntegrityClean home visit
Clean IndividualsHarmonious FamilyProsperous National Cellar
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Anti-corruption system
The Company established an anti-corruption system within the Company in accordance with national lawsand regulations and carried out relevant policy education and training, with an anti-fraud mechanism clearlyestablished in the Regulations on Management of Employees’ Integrity and Measures for Management ofPetitions and Visits to standardize the reporting, investigation, handling, reporting and remedial proceduresof fraud cases.
Report Tel: 0830-2398612 Report email: jiwei@lzlj.comCommunication and contact address: Ofce of Discipline Inspection Commission, Floor 6, Luzhou Laojiao Marketing Building, No.9Nanguang Road, Longmatan District, Luzhou City, Sichuan ProvinceCompliant operationThe Company made continuous efforts to improve the internal control management process and carefully sort out the internal audit workmanual to standardize the relevant contents and practical operation guidelines clearly. In addition, through expanding the number ofinternal auditors outside and strengthening the study and training inside, it also improved the comprehensive level of internal auditors,thus ensuring the efciency, standardization and standardization of internal audit of the Company.
With consistent focus put on standardizing the internal control evaluationworkflow, the Company formulated the quality management system, andstrictly controlled the quality and safety of products. In addition, the Companyeffectively improved the Company’s risk prevention and safe productionmanagement level to ensure the orderly operation of the Company.
The Company hasapplied for theorganic certificationof Beijing ZhonglvHuaxia Organic FoodCertification Centersince August 2008.
In 2022, no majorcases of fraud andcorruption occurredin the Company
In 2022, no dispute or litigation dispute about contract review was found in the Company.
Establishing a Compliance Committee, drafting theMeasures for Management of Compliance of LuzhouLaojiao Co., Ltd. (Trial), and establishing a compliancejoint meeting mechanism.Organizing the directors, supervisors, seniormanagers and core employees of the Company toparticipate in all qualication studies and professionaltrainings organized by the regulatory authorities in anorderly manner through the combination of onlineand ofine, regular and irregular forms, and boostingconstruction of the Company’s compliance culture.
Conducting risk case analysis every quarter.Participating in the Seminar on Enterprise ComplianceManagement under the New Development Pattern and the rstSichuan Law and Business Integration Forum organized by theState-owned Assets Supervision and Administration Commissionof Sichuan Province, Law Society of Sichuan Province and theFederation of Industry and Commerce of Sichuan ProvinceProviding publicity risk avoidance training and the trainingfor course of Intellectual Property Risk Prevention and Controlof Promotional Products for employees of the Company.
In 2022, part of the Company’s compliance work includes:
If employees of Luzhou Laojiao are found to violate disciplines and laws, related personnel can report toDiscipline Inspection Commission of the Company by telephone, letter or email
Strict Control ofFood Safety
Certification of quality and food safety managementsystems of the Company
Luzhou Laojiao was awarded the title of the2021-2022 food safety integrity organization
Responsibility implementation:
establishing a safety managementsystem with the Company’s seniorfood safety director and food safetyofficer assisting in food safetymanagement.
Responsibility division: subdividing foodsafety responsibilities into primary-level organizations and workshops,formulating a list of food safetyresponsibilities for front-line posts,and carrying out regular food safetytraining and assessment.
Responsibility standard: strictlyimplementing quality andsafety management standardsystems such as ISO9000 qualitymanagement system and ISO22000food safety management system.
In 2022, the Company actively promoted the construction of food safety responsibility system;
The risk control rate ofcontract review andmanagement was100%
The Company reviewed andrevised contract texts of
,
piecesover
Number of lingcontracts signed
,
piecestotal over
Quality managementLuzhou Laojiao strictly followed Food Safety Law of the People’s Republicof China and Provisions on the Supervision and Administration of theImplementation of Main Responsibility for Food Safety by Enterprises andimplemented the construction of food safety responsibility system to effectivelyguarantee the food safety of products and safeguard the legitimate rights andinterests of consumers. In 2022, the Company was awarded the title of thefood safety integrity organization
Coexistence of InterestsCo-creation of Excellent Brand
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Improvement of quality and safety management processThe Company carried out whole product life cycle management, whole process traceability and whole industry chainrisk control through consistently following the food (quality) safety management strategy of putting prevention rst andcombining prevention and control, strictly controlled the links of source management, production management, ex-factorymanagement and accident handling, with the quality and efciency of food (quality) safety management improved.
Knowledge Link: What is Quyao?Quyao is one of important rawmaterials in the process of Baijiubrewing. As leavening agent mixed inthe grain during the traditional Baijiubrewing process, Quyao is rich invarious microorganisms and microbialmetabolites. Under the combinedaction of various microorganisms, thegrain can be transformed into Baijiuafter distillation.
ProcedureMeasures and results
Sourcemanagement
The Company carried out food safety risk index testing on harmful substances such as heavy metals,methanol and cyanide in the original wine according to the national standards concerning migrationamount of harmful substances such as pesticide residues and heavy metals in raw and auxiliary materials,and the national third-party testing institutions implemented strict control to ensure the food safety ofproducts.In 2022, two quality appraisals of Quyao were completed, and the proportion of high-quality Qu reached100%, up 1.68% year-on-year, with stable quality of Quyao.
Production control
Production technicians conducted 24-hour production inspection, and output standardized and modularprocess les, with all aspects of production clearly controlled, and the whole production process recordedto form a traceable system and guarantee traceability of food production safety issues.The cumulative average process execution rate of the Company’s three major brewing bases was over99%, and the external audit pass rate of quality management was 100%.
Packagingmanagement
The Company made clear and unified inspection standards and requirements for suppliers of productcartons, caps, wine bottles and gift boxes, and urged suppliers to follow them. To reduce quality problemsresulting from influence of the external environment in the production process of wine-body contactpackaging materials, the Company required bottle cap and bottle suppliers to build dust-free workshopsin key links.In 2022, the Company completed quality audits of 23 packaging material suppliers and lling enterprises,and issued 23 audit reports, with 51 unqualied items found and rectied.
Ex-factorymanagement
The Company regularly organized sampling inspection of various products, packaging materials, watersamples, etc., to guarantee that the product quality reached the standard, with a product qualityappraisal, authenticity appraisal, after-sales complaints and inquiries implemented actively.In 2022, the Company accepted 406 inquiries about product quality appraisal, authenticity appraisal andafter-sales complaints and inquiries.
Silhouette of Activities for Chief Quality Ofcer of the Industrial Chain
IndexUnit202020212022
Number of quality training activitiesTimes101914
Cumulative number of peopleparticipating in quality training activities
Person550303425
Boosting construction of standardization system
The Company organized keeping pace with international advanced standards of BRC (Global Standard for Food Safety) and IFS(International Food Standard) and drew on international advanced experience. With possible food hazard risks in the process ofproduct production and circulation analyzed, the Company’s quality management level was improved and product risks were reducedthrough closed-loop rectication. In addition, the Company actively implemented quality standard research and participated in theformulation and revision of standards and regulations, facilitating improvement of quality management of the Company and thestandardized development of industry quality management.In 2022, the Company participated in drafting and revising 9 national standards and 2 group standards.Accelerating the cultivation of quality cultureThe Company pursued the qualicationcertication of employees in the industrialchain and deepened the cultivationof chief quality ofcers in the supply,production and sales industrial chain, withthe construction of primary-level qualitymanagement talents strengthened.
The Company carriedout “Quality Month”activities, and invitedquality managementexperts to teach andshare experience.
The Company organizedquality managementcompetitions to improvethe actual ability ofquality talents in theindustrial chain.
The Companyregularly promotedquality managementmarket informationand organizedquality problemanalysis meeting.
Improving quality management ability
Coexistence of InterestsCo-creation of Excellent Brand
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Luzhou Laojiao pioneered the qualification certification system forindustrial chain quality practitioners in the industry. The Companypioneered the qualification certification system for industrial chainquality practitioners, and organized members from universitiesin cooperation with the Company and experts from authoritativeinstitutions to give lectures for industrial chain quality practitioners.After passing the examination, trainees can obtain the qualificationcerticate for industrial chain quality practitioners of Luzhou Laojiao,and they can maintain their qualications by completing correspondingcontinuing education courses every year. The certification of theCompany’s quality practitioners effectively solved the problem ofuneven level of quality practitioners in industrial chain enterprises.
Quality inspection qualification certification trainingfor industrial chain quality practitioners
In 2022, Luzhou Laojiao launched a series of specialactivities of Quality Month with the theme of “GatheringWisdom, Strengthening Skills and Empowering QualityLuzhou Laojiao”, covering standard training. It invitedexperts with experience in quality management to givelectures, and organized an industrial chain quality andsafety forum
Quality Brieng of Luzhou Laojiao Co., Ltd.The Company organized enterprises in the industrial chain
to hold quality problem analysis meetings, and proposedquality improvement measures at the meetings
Safe productionInsisting on people orientation and implementing safety responsibility management, Luzhou Laojiao actively carried out activities such as“safe production list system management”, “potential safety hazard investigation and management” and “safe production month” tostabilize safe production situation of the Company. In 2022, the number of production safety accidents of the Company was zero.
Safety managementWith regard to safety management, the Company formulated the Work Plan for Safe Production in 2022, and prepared 1,036safe production management lists in eight categories, such as List of Main Responsibilities of Enterprises, List of Responsibilities forSafe Production Management and List of Responsibilities for Safe Production Posts. It organized relevant departments to sign theResponsibility Letter for Target Management of Safe Production, to compact safety responsibilities layer by layer and effectively enhancethe awareness of safe production and safety development of all employees.Potential hazard investigationWith focus put on safety risk management and control, investigation and management of potential hazards, the Company organizedactivities to rectify potential hazards within a limited time, tracked, guided and supervised the rectification of potential hazardsthroughout the process, with a long-term mechanism for safe production established.
In 2022, the Company carried out company-level safety inspection and potential hazard
investigation of103 times and all unqualied items were rectied.Number ofgeneral potential
hazards found
and rectied859 items
Number ofdepartment-levelsafety inspectionimplemented
over 2,000 times
Number of potentialhazard investigationover2,700 items
Number of special safetyinspections such as oodcontrol geological disastersand re safety implemented
99 times
Number ofpotential hazardinvestigation
773 times
IndexUnit202020212022Safe production inputTen-thousand RMB1,561.481,542.301,330.30Serious re accidentsOccurrence000Serious safe production accidentsOccurrence000
IndexUnit202020212022Rectication rate of potentialsafety hazards
%100100100
Coexistence of InterestsCo-creation of Excellent Brand
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Safety culture mode:
Construction mode of safety culture with characteristics of
“two-aspects-driven” and “ve-gathering construction”
Safety culture position:
Establish safety culture positions such as safety culturecorridor, safety corner, safety education platform, andWeChat micro-course all-media publicity matrix
Safety concept:
Life is supreme, and happiness is the same
Safety vision:
Safety-based happiness and peace
Safety mission:
Carry forward the safety culture and inherit the ingenuity of
the national cellar
In 2022, the Company mainly carried out the inspection of potential safety hazards
Emergency drillThe Company regularly organized emergency drills, and enhanced the on-site response and disposal ability of emergency personnel, thewith emergency rescue knowledge and skills of employees strengthened through a series of emergency plan drills. Moreover, it also testedthe pertinence, scienticity and practicability of emergency plans to prevent accidents, reduce injury risks, improve emergency rescuemechanisms, train teams and educate employees.
Safety publicityWith focus put on the construction of safety culture, and creation of a “national safety culture construction demonstration enterprise” asthe starting point, the Company prepared the Strategic Plan of Safety-Based Culture, and formulated the Implementation Plan of Safety-Based Culture Construction. The Company carried out safety training and explored innovative ideas to build cultural brands and cultivatethe atmosphere of safe operation.Holding the safety concept and practicing the safety mission of “carry forward the safety culture and inherit the ingenuity of the nationalcellar”, the Company was intended to realize the safety vision of “safety-based happiness and peace”.The Company organized primary-level employeesand technicians to identify dangerous and harmfulfactors in production links, equipment and facilities,and working environment, scientifically evaluatedand sort out identified risk factors to determinethe safety risk level, and conduct classifiedmanagement and control.
The Company organized the investigation andrectification of potential safety hazards andgradually sort out the problems, with a potentialhazard account established, the responsibleorganization and person determined according totheir respective responsibilities, and rectificationconducted within a limited time.
The Company boosted production safety in oodseason and organized disaster prevention andmitigation and prevention of geological disastersin ood season, with safety inspections during andafter rain strengthened, and problems found andhandled promptly.
The Company carried out in-depth investigationand rectification of potential fire hazards. Microre stations and full-time re rescue teams strictlyfollowed 24-hour emergency duty during holidaysand major events to guarantee timely rescue anddisposal in case of danger.
Carrying out potential hazard identication
Flood control and disaster reduction investigation
Implementing potential hazards rectication
Potential re hazard investigation
In 2022Corperateactivities
2 comprehensive emergency plandrills at company were carried out
One drill of reghting andemergency evacuation plan62 trainings on emergency plans were conducted forpoisoning and asphyxiation, initial reghting, oodprevention and control, and other emergency plans forsubordinate companies and departments10 re drills were conducted bydedicated re department for keyparts of the wine store
174 drills of on-site disposalprogram were conducted, withmore than 4,600 participants
The Company carried out all safety training activities accordingto the actual production and job requirements and constantlyimproved the construction of safety and environmental protectiontraining system. In 2022, the Company carried out 16 safetyand environmental protection training activities such as safetytraining for new employees, safe production month and WorldEnvironment Day on June 5, with 1,280 volumes of books forsafety instructions distributed to employees, and 9 randomassessments for safety and environmental protection knowledge,and 100% coverage of safety and environmental protectioneducation and training.
The Company won the title of pioneering organization for safetyculture publicity activities of national “Ankang Cup” competitionOn-the-job training for safety management personnel
Special training on safe production
Luzhou Laojiao characteristic safety culture
Coexistence of InterestsCo-creation of Excellent Brand
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Consistently regarding scientific and technological innovation as the core driving force forthe Company to achieve sustainable development, through continuously promoting digitalconstruction and increasing investment in scientic research and innovation, the Company hascontinuously created a new situation for high-quality development of scientic and technologicalinnovation of Luzhou Laojiao.During the reporting period, Luzhou Laojiao was included into List of Organizations for IntelligentManufacturing Demonstration Factory in 2022 issued by the Ministry of Industry and InformationTechnology, the National Development and Reform Commission, the Ministry of Finance and theState Administration for Market Regulation, becoming the rst nalist in the Baijiu industry.Promoting digital operation
Focusing on the main strategic objective of “empowering business innovation and boostingdigital transformation”, the Company optimized the operation process by digital means,increased the integrated application of intelligent equipment and systems in the whole industrychain, with management efficiency improved, operating costs controlled, and the creationof leading enterprise in intelligent technological revolution and demonstration enterprise inindustrial model innovation and upgrading further accelerated.Digital managementWith “Building a Digital and Intelligent Luzhou Laojiao” as guideline, and data application valueas guidance, the Company insisted on promoting governance by application and improvedthe data-oriented management structure to deepen the formation of an implementable andsupportive management mechanism, and consolidate the foundation of digital operation.
Establishmentof DigitalIntelligence-basedEnterprises
Formulation of system documents: Formation of standard documents such as Data Management Bylaws (Draft),Index Data Specication Template and Data Standard Specication Template.Clarification of organization and leadership: Upgrade the Data Management Committee to a company-levelprofessional committee, and preliminarily clarify the hierarchical data management and execution mechanism accordingto the principle of “managing business means managing data”. The Data Management Ofce is responsible for thecompany-level and cross-domain data-related work, and the centralized management organizations in various elds areresponsible for the data-related work in the corresponding business domains, to gradually improve the standardizationof data management through rened business management and improve the data quality from the source of datageneration.Effectiveness of data empowerment: Complete the master data development and launching work of packagingmaterials, spare parts and low-value consumables as planned, empower related businesses, complete the master datalinking work of 46 business systems, and guarantee the consistency of master data of major business systems.
Digital transformation
The Company gradually promoted the comprehensive digital construction of functional management system and production execution,with the Company’s operational efciency improved through digital management platform, the Company’s operating costs reducedthrough digital production mode, and high-quality development realized through digital transformation. Digital management platformKnowledge management platform: The Company promoted the constructionof knowledge management platform and improved the module of knowledgemanagement platform through demand research, with knowledge assets accumulatedthrough the digital system integrating “knowledge management+ online learning”, thusavoiding knowledge loss, boosting knowledge learning, sharing, training and innovationof enterprises and employees, effectively reducing organizational operating costs, andstrengthening knowledge management ability and competitiveness of the Company.Safe production management platform: The Company accelerated the digitalconstruction of safe production, and completed the construction of safe productionmanagement platform and its popularization and application in Huangyi Park andLuohan Park. With application of safe production management platform, the gatheringand sharing of safe production data in the park and the 3D visual model of the park wererealized, along with the visual perception of the safe production situation in the park.
Intelligent factoryThe Company made continuousefforts to boost the digitaltransformation of production,improve data management in theproduction eld, and promote theconstruction of digital factories.In 2022, data collection wasconducted at 120,000 real-timedata points of 10 business systemsin all existing production areas,providing a solid data governancefoundation for the digital operationof production. Security integration platformIn 2022, the Company carried out the blueprint planning of digital construction of safe production and completed theconstruction of safe production management platform and its promotion in Huangyi Park and Luohan Park. Therefore, theonline closed-loop management of safe production and environmental protection business, intelligent inspection of potentialrisks, online handling of special operation tickets, and implementation of the responsibility system of safe production list wererealized. The safety integration platform project will help to realize the gathering and sharing of safe production data, with a3D park engine and a 3D visualization model of Huangyi Park built, and a video image AI analysis engine created to achieve thevisual perception of the safe production situation in the park.
In 2022, the Company further improved data management:
The Company built a data service and management platform (data center) in 2022 toestablish an enterprise-level reusable data asset center and data capability center, layingthe foundation for digital operation of enterprise business.Data of product sales, nance, consumers, human resources, auditing and supply chainwere accessed in the platform. In 2022, with the application of company data analysisdeepened, the Company also designed and planned the data application and governanceorganization of supply chain system and sales system in more details, and built a three-level management system of decision-making, management and execution. Therefore, thedata governance could be implemented from top to bottom, laying a good foundationfor building data assets and exerting data value.
Luzhou LaojiaoBuilding big dataDecision-makingsupport platform
Coexistence of InterestsCo-creation of Excellent Brand
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2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
Digital production work (Partial) carried out by the Company in 2022:
While adhering to the tradition, Luzhou Laojiao constantly made attempts to spread traditional culture and pursue intelligenttransformation through technology and scientic and technological means. Luzhou Laojiao enhanced the consumer experience throughdigital capabilities, thus catering to needs of market consumption upgrading.
Luzhou Laojiao Huangyi data centerThe capacity of the computing and storage resource pool of the Company increased by over 50%, with a two-places three-centers standard data center structure built to drastically improve the efciency of warehousingbusiness.
EWM (Extended Warehouse Management) project
of three-dimensional warehouseThe automatic operation of the whole process from packaging material warehousing-in to nished productwarehousing-out was realized to minimize labor, build an intelligent three-dimensional warehouse, and realizethe automatic, intelligent and visual operation of the whole process of physical logistics, information ow anddata ow.
Supply-chain collaborative management platform projectThe production, procurement, warehousing, transportation, sales and other management systems of upstreamand downstream users could be connected, and platforms could be connected to realize the data connectionof purchase orders, inventory lling, reconciliation invoices and standard contract signing, with the efciencyof suppliers and visual procurement improved.
MES (Manufacturing Execution System)
Project of Intelligent Packaging CenterMES system can integrate management functions such as production scheduling, product tracking, qualitycontrol, equipment failure analysis, network report on a unified platform. With MES project in intelligentpackaging center, the batch management of packaging materials and Baijiu sources can be realized and theeffective coordination of packaging materials supply, Baijiu source guarantee and packaging production canbe improved. The quality control and traceability of the whole production process from the Baijiu source andpackaging materials to the nished product off the assembly line can be realized.
Deepening in operation system of core consumers:
Carry out research and system optimization and transformationfor rened operation of core consumers, and deepen the renedoperation of core consumers through realizing the unication ofconsumer classication and grading and the formulation of tasksystem.
Intelligent marketing
In 2022, Luzhou Laojiao carried out the technological transformation projectof intelligent packaging center. For the project integrating procurement, filling,warehousing, logistics and information system, it is also the rst time that the Companyintegrates automation technological transformation with information construction. In2021, the Company completed the digital construction plan of intelligent packagingcenter, and claried how to realize the digitial intelligent factory. In 2022, the Companyfurther completed the design of the business operation scheme and operation executionow of the intelligent packaging center. Currently, the construction of all informationsub-projects was carried out in an orderly manner as scheduled.
Luzhou LaojiaoIntelligenceorientationPackaging center
Deepening in member operation system:
Formulate the dual-position operation strategy of Guojiaohuiapplet and Luzhou member applet for the member operation.Set up the operation of brand areas in Luzhou and build adifferentiated operation system conforming to the characteristicsof each brand; The Guojiaohui applet is independent, satisfyingthe characteristic needs for operation of Guojiaohui members.
Appendix
vⅤ
9899
Appendix
2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
9899
Table of Key Performance
Environmental performance
ClassicationIndex nameIndex unit202020212022WasteHazardous waste dischargeTon21.93940.9924.13Packaging
material
Recycling quantity of packaging
materials
Ton688.05 609.29 723.81
ClassicationIndex nameIndex unit202020212022ClassicationIndex nameIndex unit202020212022
Employment
Total number of employeesPerson3,3303,4343,605
WomenPerson1,1021,2731,295
MenPerson2,2282,1612,310Percentage of men%676364Percentage of women%333736
Developmentand training
Staff training timesPerson73,98489,03764,255Employee training input
Ten-thousandRMB
786.03906.34956.77
Average number of training hours per
employee per year
Hours19.4047.8430.89Helping needy employees
Ten-thousand
RMB
74.5079.0772.29
Health andsafety
Safe production input
Ten-thousand
RMB
1,561.481,542.301,330.30Safe production training rate%100100100Number of safety emergency drillsTimes20760174Number of participants in safety drillsPerson5,7003,0004,600Number of employee casualtiesPerson000Work-related serious injury rate%000
Work-related mortality%000Work-related injury rate %000Serious re accidentsOccurrence000Serious safe production accidentsOccurrence000Rectication rate of potential safety
hazards
%100100100Number of times to carry out safety re
drills
TimeS91010
Social performance
Governance performanceClassicationIndex nameIndex unit202020212022
Governanceperformance
Holding a general meeting of
shareholders
Times122Board of DirectorsTimes81814Board of SupervisorsTimes389Holding performance briengs and
roadshows
Times111Open channel information disclosureItem221218131Economicperformance
Gross revenue
Hundred million
RMB
166.53 206.42 251.24
Total prot
Hundred million
RMB
79.39 105.51 138.55
Scientic andtechnologicalinnovation
R&D investment
Ten-thousand
RMB
11,241.81 16,912.55 20,624.85Proportion of R&D investment in
operating income
%0.68 0.82 0.82Number of personnel involvedin research and experimentaldevelopment projects
Person474494480
Product liability
Number of quality training activitiesTimes101914Cumulative number of peopleparticipating in quality training
activities
Person550303425
100101
Appendix
2022 Annual Environmental,Social and Governance Report of Luzhou Laojiao Co., Ltd.
100101
Index of Metrics
Report contents
United Nations
sustainabledevelopment goals
CASS-CSR4.0PageAbout the Report-P1.1-P1.301About Us-P4.1-P4.5,G1.1-G1.206Leader’s Speech-P2.1-P2.2,G3.114Responsibility Management-
G1.2,G2.1,G2.3,G3.1,G6.1-6.2,A3
GreenDependence- Co-creationof Low-carbonFuture
Strengthening of Environmental
Management
SDGs 12,13,14,15
E1.1-E1.4,E2.8E2.9,E2.11-E2.18
Promotion of Energy Conservation andCarbon Emission Reduction
E1.6-E1.10,E2.1E2.6,E2.21,E2.23-E2.25
Implementation of EnvironmentalProtection Publicity and Education
E1.5,E1.7,E3.3-E3.4,E3.638Deepening of Green OperationE2.19,E3.1-E3.241
Together Now -Co-creation ofBeautiful World
Empowerment to Employee Growth
SDGs 3,4,5,8,11
S1.5-S1.6,S2.1-S2.5,S2.7-S2.8,S2.10-S2.12,S2.14-S2.18,S2.20
Joint Efforts for Win-win by Partners
M2.1-M2.2,M2.14-M2.18,M3.1,M3.4-M3.6,
M3.10-3.13,M3.16
Enthusiasm about Social WelfareS4.6-S4.1162Support for Rural RevitalizationS4.5,S4.12-4.1464Inheritance of Intangible Cultural
Heritage
G2.3,S4.966Advocation of Responsible DrinkingM2.8-M2.10,M2.1269Coexistenceof Interests -Co-creation ofExcellent Brand
Strengthening of Leading Role of Party
Building
SDGs 9,11,12
M1.372Optimization of Corporate GovernanceM1.1,M1.4-1.8,S1.1-S1.477Strict Control of Food SafetyM2.1-M2.3,S3.1-S3.785Establishment of Digital Intelligence-
based Enterprises
M2.4-M2.792Appendix
Table of Key Performance-A298Index of Metrics-A5100Opinion Feedback-A6101
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