Luzhou Laojiao Co., Ltd.
2024 Annual Report
【April 2025】
2024 Annual ReportSection I Important Statements, Contents and DefinitionsThe Board of Directors, Board of Supervisors, directors, supervisors and senior management guaranteethat the information presented in this report is free of any false records, misleading statements ormaterial omissions, and shall individually and together be legally liable for truthfulness, accuracy andcompleteness of its contents.
Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work andSong Ying, responsible person for the Company’s financial affairs (Accounting Supervisor) havewarranted that the financial statements in this report are true, accurate and complete.
Other directors attended the board meeting to deliberate this report by themselves except the followingdirectors.
| Name of directors who did not attend the meeting in person | Position of directors who did not attend the meeting in person | Reason for not attending the meeting in person | Name of deputies |
| Lin Feng | Director | Work | Xiong Pingting |
Affected by risks, uncertainties and assumptions, the forward-looking statements concerning businessobjectives and future plans made in this report based on the subjective assumptions and judgments ofthe future policies and economic conditions may be significantly different from the actual results. Suchstatements shall not be considered as virtual promises of the Company to investors, and the investorsand relevant persons shall maintain adequate risk awareness and shall understand the differencesbetween plans, forecasts and commitments.
In the annual report, the potential risks in the operation of the Company have been disclosed. Investorsare kindly reminded to pay attention to possible investment risks.
The profit distribution plan approved by the board of directors: based on 1,471,951,503 shares, a cashdividend of CNY 45.92 (tax inclusive) will be distributed for every 10 existing shares held, 0 shares ofbonus shares (tax inclusive), and reserves would not be converted into share capital. On January 24,2025, the Company carried out the 2024 interim dividend payout of CNY 13.58 (tax inclusive) for every10 existing shares held, totaling CNY 1,998,910,141.07 (tax inclusive). If the said profit distribution planis approved at a general meeting of shareholders, the total cash dividend payout for 2024 would beCNY 8,758,111,442.85 (tax inclusive), accounting for approximately 65.00% of the net profitsattributable to shareholders of the Company in 2024.
This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
Contents
Section I Important Statements, Contents and Definitions ...... 2
Section II Company Profile and Key Financial Results ...... 6
Section III Management Discussion and Analysis ...... 12
Section IV Corporate Governance ...... 52
Section V Environmental and Social Responsibility ...... 82
Section VI Significant Events ...... 95
Section VII Changes in Shares and Information about Shareholders ...... 103
Section VIII Preferred Shares ...... 116
Section IX Information about Bond ...... 116
Section X Financial Report ...... 122
Documents Available for Reference
1. Financial statements signed and stamped by the responsible person for the Company, theresponsible person for accounting work and the responsible person for the Company’s financial affairs(Accounting Supervisor);
2. The original of the auditor’s report with the seal of the accounting firm, and signed and stamped byCPAs; and
3. The originals of all company documents and announcements that are disclosed to the public duringthe reporting period.
Definitions
| Term | Reference | Definition |
| Company, the Company, Luzhou Laojiao | Refer to | Luzhou Laojiao Co., Ltd. |
| Laojiao Group | Refer to | Luzhou Laojiao Group Co., Ltd. |
| XingLu Group | Refer to | Luzhou XingLu Investment Group Co., Ltd. |
| SASAC of Luzhou | Refer to | State-owned Assets Supervision and Administration Commission of Luzhou |
| Huaxi Securities | Refer to | Huaxi Securities Co., Ltd. |
| Luzhou Bank | Refer to | Luzhou Bank Co., Ltd. |
| Sales Company | Refer to | Luzhou Laojiao Sales Co., Ltd. |
| Brewing Company | Refer to | Luzhou Laojiao Brewing Co., Ltd. |
| Golden Rudder | Refer to | Sichuan Golden Rudder Investment Co., Ltd. |
Section II Company Profile and Key Financial Results
1. Corporate information
| Stock abbreviation | Luzhou Laojiao | Stock code | 000568 |
| Stock exchange where the shares of the Company are listed | Shenzhen Stock Exchange | ||
| Name of the Company in Chinese | 泸州老窖股份有限公司 | ||
| Abbr. of the Company name in Chinese | 泸州老窖 | ||
| Name of the Company in English (if any) | Luzhou Laojiao Co., Ltd. | ||
| Abbr. of the Company name in English (if any) | LZLJ | ||
| Legal representative | Liu Miao | ||
| Registered address | Guojiao Square, Luzhou City, Sichuan Province, China | ||
| Postal code | 646000 | ||
| Past changes of registered address | The Company’s registered address has changed from 46 Guihua Street, Luzhou City, Sichuan Province, China to Guojiao Square, Luzhou City, Sichuan Province, China in 2000. | ||
| Business address | Luzhou Laojiao Command Center, 71 Nanguang Road, Luzhou City, Sichuan Province, China | ||
| Postal code | 646000 | ||
| Company website | www.lzlj.com | ||
| lzlj@lzlj.com | |||
2. Contact us
| Secretary of the board | Representative for securities affairs | |
| Name | Li Yong | Wang Chuan |
| Address | Luzhou Laojiao Command Center, 71 Nanguang Road, Luzhou City, Sichuan Province, China | |
| Tel. | (0830)2398826 | (0830)2398826 |
| Fax | (0830)2398864 | (0830)2398864 |
| dsb@lzlj.com | dsb@lzlj.com | |
3. Information disclosure and place where the annual report is kept
| Stock exchange website where this Report is disclosed | China Securities Journal, Securities Times, Securities Daily |
| Media and website where this Report is disclosed | http://www. cninfo.com.cn |
| Place where the annual report of the Company is kept | Board office |
4. Company registration and alteration
| Unified social credit code | 91510500204706718H |
| Changes in main business activities since the Company was listed (if any) | None |
| Changes of controlling shareholders of the Company (if any) | Before September 2009, the controlling shareholder was the SASAC of Luzhou. After the equity transfer in September 2009, the controlling shareholder was changed to Laojiao Group, but the actual controller is still the SASAC of Luzhou. |
5. Other relevant information
Accounting firm engaged by the Company
| Name of the accounting firm | ShineWing Certified Public Accountants |
| Business address of the accounting firm | 8/F, Tower A, Fuhua Building, 8 Chaoyangmen North Street, Dongcheng District, Beijing, China |
| Name of accountants for writing signature | He Jun, and Ouyang Lihua |
Sponsors engaged by the Company to continuously perform its supervisory function during thereporting period
□ Applicable ? N/A
Financial adviser engaged by the Company to continuously perform its supervisory function duringthe reporting period.? Applicable ? N/A
6. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data.? Yes ? No
| 2024 | 2023 | YoY Change | 2022 | |
| Operating revenues (CNY) | 31,196,248,208.33 | 30,233,301,388.26 | 3.19% | 25,123,563,271.62 |
| Net profits attributable to shareholders of the Company (CNY) | 13,472,986,476.01 | 13,246,394,700.59 | 1.71% | 10,365,383,281.80 |
| Net profits attributable to shareholders of the Company before non-recurring gains and losses (CNY) | 13,399,514,669.49 | 13,150,392,806.65 | 1.89% | 10,321,481,236.93 |
| Net cash flows from operating activities (CNY) | 19,181,768,363.65 | 10,648,364,935.46 | 80.14% | 8,262,648,269.72 |
| Basic earnings per share (CNY/share) | 9.18 | 9.02 | 1.77% | 7.06 |
| Diluted earnings per share (CNY/share) | 9.18 | 9.02 | 1.77% | 7.06 |
| Weighted average ROE | 30.44% | 35.07% | -4.63% | 33.32% |
| At the end of 2024 | At the end of 2023 | YoY Change | At the end of 2022 | |
| Total assets (CNY) | 68,334,595,564.58 | 63,294,455,201.60 | 7.96% | 51,385,481,354.52 |
| Net assets attributable to shareholders of the Company (CNY) | 47,388,500,553.46 | 41,391,410,494.89 | 14.49% | 34,207,871,130.03 |
Whether the lower of the net profits before and after non-recurring gains and losses was negative forthe last three accounting years, and the latest auditor’s report indicated that there was uncertaintyabout the Company’s ability to continue as a going concern? Yes ? No
Whether the lowest of the audited total profits before tax, net profits, and net profits before non-recurring gains and losses for the last accounting year was negative? Yes ? No
7. Differences in accounting data under domestic and overseasaccounting standards
7.1. Differences in the net profits and net assets disclosed in the financial reportsprepared under the international and China accounting standards
? Applicable ? N/ANo such differences for the reporting period.
7.2. Differences in the net profits and net assets disclosed in the financial reportsprepared under the overseas and China accounting standards
? Applicable ? N/ANo such differences for the reporting period.
8. Key financial results by quarter
Unit: CNY
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenues | 9,188,402,377.79 | 7,716,482,791.59 | 7,398,670,017.92 | 6,892,693,021.03 |
| Net profits attributable to shareholders of the Company | 4,573,950,129.90 | 3,453,588,035.41 | 3,565,502,984.74 | 1,879,945,325.96 |
| Net profits attributable to shareholders of the Company before non-recurring gains and losses | 4,552,423,532.38 | 3,441,687,198.86 | 3,570,292,253.98 | 1,835,111,684.27 |
| Net cash flows from operating activities | 4,359,428,564.46 | 3,865,631,648.11 | 4,239,654,583.54 | 6,717,053,567.54 |
Whether there are any material differences between the financial indicators above or their summationsand those which have been disclosed in quarterly or semi-annual reports? Yes ? No
9. Non-recurring profits and losses
? Applicable ? N/A
Unit: CNY
| Item | 2024 | 2023 | 2022 | Note |
| Profit or loss from disposal of non-current assets (including the write-off portion of the impairment | 1,058,750.22 | 44,694,238.37 | 19,805,093.70 |
| provision) | ||||
| Government grants accounted for, in the profit or loss for the current period (except for the government grants closely related to the business of the Company and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 41,225,885.28 | 51,950,003.11 | 34,931,161.52 | |
| Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges that is related to the Company's normal business operations) | 54,342,655.46 | 68,181,502.73 | -2,585,156.72 | |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 422,217.14 | |||
| Other non-operating income and expenditure except above-mentioned items | -1,550,111.21 | -35,875,412.66 | 7,873,927.25 | |
| Less: Corporate income tax | 20,932,166.54 | 31,697,444.12 | 14,413,895.31 | |
| Minority interests (after tax) | 1,095,423.83 | 1,250,993.49 | 1,709,085.57 | |
| Total | 73,471,806.52 | 96,001,893.94 | 43,902,044.87 | -- |
Other items that meet the definition of non-recurring gain/loss:
? Applicable ? N/ANo such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities tothe Public-Non-Recurring Gains and Losses as a recurring gain/loss item.? Applicable ? N/ANo such cases for the reporting period.
Section III Management Discussion and Analysis
1. Industry overview for the reporting period
In 2024, the baijiu industry entered a new adjustment cycle. Over the coming period, the industry isexpected to undergo accelerated “differentiation”, with market competition becoming increasinglyintense. The industry is trending towards younger consumers, lower alcohol content, and a focus onhealth. Only companies that continue to innovate will be able to seize development opportunities.
2. Business scope in the reporting period
The Company shall comply with the disclosure requirements for companies engaging in food & liquorand wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation ofListed Companies—Industry-specific Information Disclosure.
Holding three food business licenses, the Company operates within the baijiu subdivision industrywhich belongs to the liquor & wine, beverage and refined tea production industry with specializedbaijiu product design, production and sales as its main business model. The Company’s primaryproducts are baijiu series such as "National Cellar 1573" and "Luzhou Laojiao", and its maincomprehensive performance indicators rank high in the baijiu industry. For the reporting period,operating revenue amounted to CNY 31.196 billion, up 3.19% year on year; and the net profitattributable to the shareholders of the listed company reached CNY 13.473 billion, up 1.71% year onyear.
For the Company's brand operations, please refer to "4.1 Overview" under “4. Analysis of mainbusiness” in this section. The Company’s main products are classified as follows:
| Main product types | Classification criteria | Representative brand name |
| Mid- and high-end baijiu | Tax-inclusive sales price ≥ CNY 150 per bottle | National Cellar 1573, Luzhou Laojiao Tequ, and Century-old Luzhou Laojiao Jiaoling Baijiu |
| Other baijiu | Tax-inclusive sales price < CNY 150 per bottle | Luzhou Laojiao Touqu and Luzhou Laojiao · Hey Guys |
Main sales models:
Currently, the Company has two main sales models:
1. Traditional channel operation model: It is mainly authorized distribution of the offline distributors. TheCompany establishes cooperative relationships with the distributors by product lines and regions. TheCompany directly supplies goods to the distributors, and then distributors sell them to consumers andterminal outlets.
2. Emerging channel operation model: It is mainly online sales operations. The Company establishescooperative relationships with e-commerce platforms, self-media and webcasters, and sells the goodsto consumers through flagship stores, specialty stores, live streaming rooms on online platforms andother network terminals.
Distribution models:
? Applicable □N/A
1. Main sales models
Unit: CNY
| Operating revenue | Cost of sales | Gross profit margin | YoY change of operating revenue | YoY change of cost of sales | YoY change of gross profit margin | |
| By sales model | ||||||
| Traditional channel operation model | 29,573,326,673.25 | 3,550,217,152.71 | 88.00% | 3.20% | 12.93% | -1.03% |
| Emerging channel operation model | 1,479,326,664.30 | 294,200,778.24 | 80.11% | 4.16% | -13.66% | 4.10% |
2. Distributors
| Region | Number of distributors at the end of the reporting period | Increased number during the reporting period | Decreased number during the reporting period | YoY change of number of distributors (%) | Reason for any significant change |
| Domestic | 1701 | 183 | 192 | -0.53 | |
| Overseas | 85 | 11 | 30 | -18.27 |
3. Main settlement method for distributors and distribution method
The Company's main settlement method for distributors is payment before delivery. The distributionmethod is authorized distribution.
4. Top five distributors
The Company had no accounts receivable from the top five distributors at the end of the period. Fordetails, please refer to Section III 4.2.8. "Main customers and suppliers".
Store sales terminals accounted for more than 10%
□ Applicable ? N/A
Online direct sales? Applicable □N/AFor the sales of the Company's main products, please refer to Section III 4.2.1. "Breakdown ofoperating revenues". The Company's complete series of products are sold online. Its main cooperationplatforms included JD.com and Tmall.
Sales price of main products contributing over 10% of the total operating revenues for the currentperiod changed by more than 30% from the previous reporting period
□ Applicable ? N/A
Purchase model and purchase content
Unit: CNY
| Purchase model | Purchase content | Amount of main purchase content |
| Organic raw grains are purchased through cooperative model and supplied by organic raw grain bases; other raw grains and packaging materials are purchased through bid invitation | Raw materials | 3,907,073,658.46 |
| Purchase based on the unified pricing of the National Development and Reform Commission and the price bureau, and purchase through bid invitation | Fuels and energies | 186,003,014.55 |
| Purchase through bid invitation | Low-value consumables | 69,781,382.75 |
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the totalpurchase amount
□ Applicable ? N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable ? N/A
Main production model:
The Company's main production model is self-production.
Commissioned processing and production
□ Applicable ? N/A
Main breakdown items of cost of sales
Unit: CNY
| By business segment | Item | 2024 | 2023 | YoY Change | ||
| Amount | As % of cost of sales | Amount | As % of cost of sales | |||
| Baijiu | Raw materials | 3,088,023,001.56 | 80.32% | 2,938,909,467.97 | 84.34% | 5.07% |
| Baijiu | Labor costs | 292,097,887.79 | 7.60% | 261,260,432.24 | 7.50% | 11.80% |
| Baijiu | Manufacturing overhead | 464,297,041.59 | 12.08% | 284,374,819.89 | 8.16% | 63.27% |
Note: The 63.27% YoY increase in manufacturing overhead is mainly because the Intelligent PackagingCenter was put into operation during the reporting period.
Production volume and inventory
1. Production volume, sales volume and inventory of main products
| Product classification | Production volume (ton) | Sales volume (ton) | Inventory (ton) | YoY change of production volume (%) | YoY change of sales volume (%) | YoY change of inventory | Description of major changes |
| Mid- and high-end baijiu | 39,441.69 | 42,990.65 | 33,002.59 | 26.18 | 14.39 | -9.71 | |
| Other baijiu | 65,426.97 | 60,770.41 | 10,355.88 | 24.15 | 3.54 | 81.70 | Mainly due to the increased stock of Touqu products for the year-end period |
2. Inventory at the end of the reporting period
Unit: Ton
| Finished baijiu | Semi-finished baijiu (including base baijiu) |
| 43,358.47 | 429,840.35 |
3. Capacity
Unit: Ton
| Main products | Design capacity | Actual capacity | Capacity in progress |
| Baijiu | 170,000 | 170,000 | 80,000 |
3. Analysis of core competitiveness
A. Geographical advantageLuzhou City, where the Company is located, sits in the transitional area between the southern rim of theSichuan Basin and the Yunnan-Guizhou Plateau, featuring a warmer and more humid sub-tropicalclimate compared to other areas at the same latitude, with a temperature above 0℃ throughout the
year. The unique climate and soil are agreeable to grow grains for baijiu brewing. The glutinous redsorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.The cellars in which the Company brews its baijiu are made of the local loessal clay characterized bystrong viscosity, rich minerals and excellent moisture retention. In addition, the abundant and qualitywater in the region creates a unique geographical advantage for the production of the Company’s baijiu.
B. Advantage of cellars and brewing techniqueAged cellars are the most essential condition for a strong aromatic baijiu maker to produce good qualitybaijiu. The Cellars of National Treasure 1573, founded in 1573, was granted by the State Council as thefirst Cultural Relic of National Importance in the industry under the Protection of the State in December1996. 1,619 cellars of Luzhou Laojiao which have been continuously used for over 100 years, togetherwith its 16 ancient brewing workshops and three natural cellar holes, were all selected as the fourthbatch of Cultural Relics of National Importance under the Protection of the State in 2013. They areunique resources that cannot be replicated. In both 2006 and 2012, Luzhou Laojiao Daqu Cellars weretwice selected into the preliminary list of China for World Heritage. In November 2018, Luzhou LaojiaoCellars and Brewing Workshops were selected into China’s Industrial Heritage List. The time-honoredTraditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewingtechnique for strong aromatic baijiu. This technique was selected as the first batch of NationalIntangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the TraditionalBrewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for thequality of the product series of National Cellar 1573 and Luzhou Laojiao. Additionally, Huangyi BreweryEco-Park has moved into full production in late 2020. Upholding the cultural connotations of“inheritance of ancient ways, pure-grain brewing, traditional techniques, and intelligent technologies”,the Company carried out brewing technical renovation featuring automatic, intelligent and informationtechnology-based transformation. As such, it has established a baijiu brewery eco-park comprisingbrewing workshops, leaven making workshops, and base baijiu storage cellars, along with energy andsewage treatment facilities. This brewery eco-park brings with it new production capacities of 100,000tons of quality pure-grain solid baijiu and 100,000 tons of leaven in addition to a new storage capacity of380,000 tons of baijiu per year, marking a substantial increase in the Company’s production capacity.
3、品牌优势
C. Brand advantageBrand is a key business resource for baijiu producers. The Company’s reputation is greatly built on itssuperiority in brand. National Cellar 1573, which is of a connoisseurship level, is a world-famous high-end brand. Luzhou Laojiao Tequ, a classic brand for strong aromatic baijiu, was selected in 1952 by thefirst national tasting competition judges as one of the four most famous baijiu brands in China. It is theonly strong aromatic baijiu brand that won the title of “National Famous Baijiu” for five consecutive times,as well as the pioneer with regard to the “Tequ” variety of baijiu. In recent years, the Company hassuccessfully put in place a brand system of “dual brands, three product series, and major singleproducts” with great clarity and focus. The programs carried out to promote the brand of National Cellar1573 and revive the brand of Luzhou Laojiao have produced remarkable results, with significantimprovement in brand influence. The Company’s baijiu is increasingly known by consumers as anational brand of strong aromatic baijiu and of authentic flavor.
D. Quality and R&D advantageThe Company is committed to producing high-quality baijiu, advocating a healthy lifestyle and “makingthe quality visible”. The first “Organic Sorghum Planting Base” was established and the six-factormanagement system (including organic, quality, safety, environment, measurement and energy) wasbuilt and improved. The research platforms are established, including National Engineering ResearchCenter of Solid-State Brewing, National Liquor Test Center, National Postdoctoral Workstation, etc.,which all support the innovation and upgrading of products with their strong technical force. In recentyears, the Company has put in a lot of efforts in researching Tequ production, informatization andintelligent transformation of brewing and packaging. Relying on the technological innovation platformssuch as the National Industrial Design Center, and continuously deepening the cooperation withuniversities and scientific research institutes including the Chinese Academy of Sciences and theJiangnan University, the Company has undertaken dozens of national- or provincial-level projects andhas been granted hundreds of invention or utility model patents. And remarkable results have beenachieved with respect to improvement of the quality of base Baijiu, as well as production efficiencyimprovement.
E. Talent advantageThe Company has 1 inheritor of national intangible cultural heritage, 4 masters of Chinese brewing, 2masters of Chinese baijiu, 2 Chinese liquor connoisseurs, 1 master of Chinese baijiu technique, 18senior professor engineers, 8 experts who receive special allowances from the State Council, 4 nationaltechnicians, 3 national model workers, 5 national Labor Day Medal winners, 4 academic andtechnologic leaders of Sichuan province, 1 expert with outstanding contribution in Sichuan province, 1technology leader of Tianfu, 1 excellent engineer of Tianfu, 1 skills leader of Tianfu, 3 craftsmen ofTianfu, 5 craftsmen of Sichuan province, 1 technological elite of Tianfu, 2 young science andtechnology talents of Tianfu, 4 technicians of Sichuan province, as well as hundreds of highly skilledpersonnel including national baijiu judges, as well as master technicians, senior technicians andtechnicians in baijiu brewing and tasting. The comprehensive and professional personnel systemassures the sound development of the Company.
4. Analysis of main business
4.1. Overview
2024 marked the 700th anniversary of the birth of Luzhou Laojiao’s strong aromatic baijiu. TheCompany remained firmly committed to the annual development theme of “proceeding with confidence,overcoming challenges, innovating, and collaborating”, continuously strengthening its internal growthmomentum, enhancing market competitiveness, and maintaining a sound and stable development trend.Over the past year, the Company achieved the following key results:
A. Multi-pronged efforts yielded marketing breakthroughsThe Company actively implemented the marketing theme of “strategic determination, digital innovation,efficient collaboration, and comprehensive breakthroughs”. Market value was further consolidated andexpanded, sales performance grew steadily, and the Company’s development resilience and strengthbecame increasingly evident. Market value advanced steadily. The National Cellar brand firmlymaintained its position in the CNY 20 billion echelon, while the Luzhou Laojiao brand surpassed theCNY 10 billion mark. Market coverage and penetration continued to expand. Digital and intelligenttransformation in marketing accelerated. The Company launched five-code products, promotedscenario code application, and reshaped the consumer channel system, driving a shift toward a “right-side strategy” focused on consumer-driven bottle-opening and scanning. Marketing collaborationempowered efficiency. Full collaboration across the sales team was advanced, enabling headquartersto support sales, back-end to support front-end, and teams to support customers, thereby unleashingcoordinated growth momentum. Circle development achieved remarkable results. Relying on athree-tier public relations system at the headquarters, sales company, and sales unit levels, theCompany continuously conducted public relations efforts, achieving notable progress in expandingtarget customer circles.
B. Culture-driven branding elevationCentered around the theme of “Chinese Strong Aromatic Baijiu for 700 Years”, the Companyextensively carried out various cultural activities to promote the continuous recovery of the value ofLuzhou Laojiao as a famous baijiu brand. Brand connotation deepened. The Company meticulouslyorganized the “Chinese Strong Aromatic Baijiu for 700 Years” themed exhibition and vigorouslyadvanced cultural tourism projects, earning certification as the “Origin of Chinese Strong AromaticBaijiu”. Branding events were effectively implemented. Leveraging cultural IP events such as the
“Baijiu Seal-off Ceremony”, global events including the Paris Olympics, and the 60th anniversary ofChina-France diplomatic relations, the Company consistently elevated its brand image. Brandpresence was strengthened. By leveraging cultural and artistic resources such as the Chinese NebulaAwards and the Hundred Flowers Awards for Popular Films, the Company infused its brand withfashion and artistic appeal. Through the “letting the world taste the Chinese flavor” global cultural tour, itcontinued expanding its international presence. In 2024, National Cellar 1573 was ranked among thetop 10 of the Hurun Most Valuable China Brands, and the Luzhou Laojiao brand was listed on the“China’s 500 Most Valuable Brands” ranking.
C. Enhancing quality and efficiency to strengthen production assuranceThe Company remained firmly committed to upholding the bottom lines of quality assurance, productioncapacity assurance, and supply chain assurance, thereby laying a more solid foundation for high-qualitydevelopment. Quality assurance continuously strengthened. The eight organic raw grain plantingbases successfully passed organic recertification. The external audit pass rate for quality, food safety,and other management systems reached 100%. By focusing on process execution and key controlpoints, the Company further improved the quality of base Baijiu and upgraded packaging quality.Production capacity assurance was solid and effective. The utilization rate of brewing resourcesand production efficiency continued to improve. The Luzhou Laojiao 950-mu Technical Upgrade Projectof Intelligent Brewing achieved phased progress, accelerating the steps toward the goal of building a“digital lighthouse factory for baijiu brewing”. Supply chain assurance gained new momentum. TheLuzhou Laojiao Intelligent Packaging Center, the first in the baijiu industry constructed to “lighthousefactory” standards, officially started operations. The Company added a new production capacity of100,000 tons in intelligent bottling, further solidifying product assurance. Luzhou Laojiao wasrecognized as the first “National Intelligent Manufacturing Benchmark Enterprise” in the baijiu industry.
D. Technological innovation stimulating endogenous growthThe Company is committed to building a “moat” of technological innovation, leveraging strongtechnological capabilities to safeguard quality, enhance brand value, and empower sales. Aninnovation-driven R&D ecosystem has taken shape. The Company fully utilized major innovationplatforms such as the National Engineering Research Center of Solid-state Brewing and the SichuanProvincial Technological Innovation Center. By collaborating with top universities and researchinstitutes, the Company tackled and applied key common and frontier-leading technologies, cultivatinga large pool of senior scientific and technical talent. The Company officially released the “Top TenScientific and Technological Innovation Achievements of Luzhou Laojiao from 2015 to 2024”,showcasing the industry-leading technological strength of the Company. Implementation ofinnovation projects accelerated. The Company led the application for 16 key projects, successfullyobtained approval for 11 government-funded science and technology projects, and completedacceptance inspections for 10 projects with a 100% pass rate. R&D achievements continued toemerge. The Company presided over and participated in the formulation and revision of 21 national,industry, association, and local standards. A total of 38 scientific papers were published. The Companysubmitted 165 patent applications and obtained 53 patent authorizations. The Company receivedmultiple prestigious awards, including the Special Prize for Technological Invention from the ChinaGeneral Chamber of Commerce, First Prize for Employee Technological Innovation Achievements from
the China Association for Science and Technology, First Prize for Scientific and Technological Progressfrom the Chinese Institute of Food Science and Technology, and First Prize for Technological Inventionfrom the China Alcoholic Drinks Association.
E. Strengthening headquarters capabilitiesThe Company focused on refined management, continuously improving a management framework thatintegrates authorization, systems, and processes, forming an efficient, sound, and diversifiedcompliance operation system. The corporate governance system was continuously optimized. TheCompany implemented the deployment of deepening reform and enhancement actions for state-ownedenterprises, established and improved the decision-making mechanism of “decision-making on majorissues, appointment and removal of important personnel, investment decisions on major projects, anduse of funds of a large amount”, and ensured the respective roles of the Board of Directors, the Boardof Supervisors, general meetings of shareholders and the management. The Company’s PartyCommittee was honored as an “Outstanding Primary Party Organization in Sichuan Province”, and theBoard of Directors won the “Best Practice Case of Listed Company Board of Directors” awarded by theChina Association for Public Companies. The Company repeatedly received the highest A-level ratingin the annual information disclosure assessment of listed companies on the Shenzhen Stock Exchange.Foundational management was steadily strengthened. The Company continued to carry outplanning control, performance assessment, and investment supervision. The “nine safety responsibilitychecklists” were fully implemented, and the incidence of production safety accidents and occupationaldiseases remained zero throughout the year. Talent-driven momentum was continuously enhanced.The Company focused on three modules— “smart HR sharing”, “smart talent management”, and “smartHR operations”—and established a “three-pillar” human resources management model. The “LuzhouLaojiao Employees” intelligent labor union platform has been successfully launched, and the digital-intelligent “Employee Paradise” began to show its effectiveness. Digital and intelligent managementcontinued to upgrade. The smart office collaboration platform is now online and operational, theapplication of RPA robots was advanced, and financial sharing was continuously upgraded. TheCompany was honored with the title of “Pioneer” in China’s industrial data governance and selected asa “Pioneer” case in the digital transformation of China’s light industry.
F. Proactively fulfilling responsibilities and demonstrating the role of a state-owned enterpriseThe Company continued to practice the corporate philosophy of “Baijiu for the World, a Shared Future”,earnestly fulfilling its social responsibilities as a state-owned enterprise. The Company made solidprogress in philanthropic initiatives, consistently carrying out social welfare activities such as ruralrevitalization and assistance for the underprivileged. In implementing bottom-line assistance measures,the Company was recognized as one of the “Top Ten Philanthropic Enterprises in Sichuan”. TheCompany remained committed to green, low-carbon, and sustainable development. For fourconsecutive years, the Company has conducted carbon emission accounting across its organizationalboundaries and carried out product carbon footprint assessments. The Company also completed anevaluation of the Action Plan for Carbon Peaking. The ESG system continued to improve. TheCompany established a Strategy and ESG Committee under the Board of Directors, formulated amedium- and long-term plan for ESG system development, and achieved continuous improvement inthe MSCI rating, ranking among the top in the industry.
4.2. Revenues and cost of sales
4.2.1. Breakdown of operating revenues
Unit: CNY
| 2024 | 2023 | YoY Change | |||
| Amount | As % of operating revenues | Amount | As % of operating revenues | ||
| Total | 31,196,248,208.33 | 100% | 30,233,301,388.26 | 100% | 3.19% |
| By business segment | |||||
| Baijiu | 31,052,653,337.55 | 99.54% | 30,077,278,859.58 | 99.48% | 3.24% |
| Other revenues | 143,594,870.78 | 0.46% | 156,022,528.68 | 0.52% | -7.97% |
| By product | |||||
| Mid- and high-end baijiu | 27,585,319,704.62 | 88.43% | 26,841,342,073.14 | 88.78% | 2.77% |
| Other baijiu | 3,467,333,632.93 | 11.11% | 3,235,936,786.44 | 10.70% | 7.15% |
| Other revenues | 143,594,870.78 | 0.46% | 156,022,528.68 | 0.52% | -7.97% |
| By geographical segment | |||||
| Domestic | 31,010,093,741.29 | 99.40% | 30,056,130,668.72 | 99.41% | 3.17% |
| Overseas | 186,154,467.04 | 0.60% | 177,170,719.54 | 0.59% | 5.07% |
| By sales model | |||||
| Traditional channel operation model | 29,573,326,673.25 | 94.80% | 28,657,038,767.86 | 94.79% | 3.20% |
| Emerging channel operation model | 1,479,326,664.30 | 4.74% | 1,420,240,091.72 | 4.70% | 4.16% |
| Other revenues | 143,594,870.78 | 0.46% | 156,022,528.68 | 0.51% | -7.97% |
4.2.2. Business segments, products, geographical segments or sales modelscontributing over 10% of the operating revenues or profits
? Applicable ? N/A
Unit: CNY
| Operating revenue | Cost of sales | Gross profit margin | YoY change of operating revenue | YoY change of cost of sales | YoY change of gross profit margin | |
| By business segment | ||||||
| Baijiu | 31,052,653,337.55 | 3,844,417,930.95 | 87.62% | 3.24% | 10.33% | -0.79% |
| By product | ||||||
| Mid- and high-end baijiu | 27,585,319,704.62 | 2,248,007,003.01 | 91.85% | 2.77% | 8.28% | -0.42% |
| Other baijiu | 3,467,333,632.93 | 1,596,410,927.94 | 53.96% | 7.15% | 13.35% | -2.52% |
| By geographical segment | ||||||
| Domestic | 31,010,093,741.29 | 3,862,718,079.68 | 87.54% | 3.17% | 10.01% | -0.78% |
| By sales model | ||||||
| Traditional channel operation model | 29,573,326,673.25 | 3,550,217,152.71 | 88.00% | 3.20% | 12.93% | -1.03% |
Under the circumstances that the statistical standards for the Company’s main business data wereadjusted in the reporting period, the Company’s main business data in the current year is calculatedbased on adjusted statistical standards at the end of the reporting period? Applicable ? N/A
4.2.3. Whether revenue from sales of goods is higher than revenue of renderingservices? Yes ? No
| By business segment | Item | Unit | 2024 | 2023 | YoY Change |
| Baijiu | Sales volume | Ton | 103,761.06 | 96,278.12 | 7.77% |
| Production volume | Ton | 104,868.66 | 83,956.49 | 24.91% | |
| Inventory | Ton | 43,358.47 | 42,250.87 | 2.62% |
Reason for any over 30% YoY movements in the data above? Applicable ? N/A
4.2.4. Execution of significant sales or purchase contracts in the reporting period
? Applicable ? N/A
4.2.5. Breakdown of cost of sales
By business segment
Unit: CNY
| By business segment | Item | 2024 | 2023 | YoY Change | ||
| Amount | As % of cost of sales | Amount | As % of cost of sales | |||
| Baijiu | Raw materials | 3,088,023,001.56 | 80.32% | 2,938,909,467.97 | 84.34% | 5.07% |
| Baijiu | Labor costs | 292,097,887.79 | 7.60% | 261,260,432.24 | 7.50% | 11.80% |
| Baijiu | Manufacturing overhead | 464,297,041.59 | 12.08% | 284,374,819.89 | 8.16% | 63.27% |
Note: The 63.27% YoY increase in manufacturing overhead is mainly because the intelligent packagingcenter was put into operation during the reporting period.
4.2.6. Change in the scope of the consolidated financial statements for thereporting period? Yes ? NoLuzhou Laojiao Whitail Liquor Industry Co., Ltd., a subsidiary of the Company, was liquidated and de-registered in June 2024. And it has thus been excluded from the consolidated financial statements ofthe Company.
4.2.7. Major changes in the business, products or services in the reporting period? Applicable ? N/A
4.2.8. Main customers and suppliers
Sales to main customers of the Company
| Total sales to top five customers（CNY） | 21,067,404,089.23 |
| Total sales to top five customers as % of the total sales | 67.54% |
| Total sales to related parties among top five customers as % of the total sales | 0.00% |
Information on top five customers
| No. | Customer | Sales amount (CNY) | As % of the total sales for the year |
| 1 | Customer A | 12,843,472,296.80 | 41.17% |
| 2 | Customer B | 4,035,698,543.60 | 12.94% |
| 3 | Customer C | 2,538,145,987.32 | 8.14% |
| 4 | Customer D | 1,017,880,050.74 | 3.26% |
| 5 | Customer E | 632,207,210.77 | 2.03% |
| Total | -- | 21,067,404,089.23 | 67.54% |
Other information on main customers? Applicable ? N/A
Main suppliers of the Company
| Total purchases from top five suppliers（CNY） | 1,394,524,586.86 |
| Total purchases from top five suppliers as % of the total purchases | 33.49% |
| Total purchases from related parties among top five suppliers as % of the total purchases | 7.98% |
Information on top five suppliers
| No. | Supplier | Purchases (CNY) | As % of the total purchases for the year |
| 1 | Supplier A | 394,394,837.42 | 9.47% |
| 2 | Supplier B | 332,071,782.49 | 7.98% |
| 3 | Supplier C | 294,354,553.42 | 7.07% |
| 4 | Supplier D | 189,509,275.34 | 4.55% |
| 5 | Supplier E | 184,194,138.18 | 4.42% |
| Total | -- | 1,394,524,586.86 | 33.49% |
Other information on main suppliers? Applicable ? N/A
4.3. Expenses
Unit: CNY
| 2024 | 2023 | YoY Change | Reason for any significant change | |
| Selling and distribution expenses | 3,538,382,615.99 | 3,974,425,526.92 | -10.97% | |
| General and administrative expenses | 1,100,779,964.56 | 1,139,480,677.23 | -3.40% | |
| Finance expenses | -488,521,059.32 | -371,152,206.41 | Mainly due to the reclassification of note discount expenses to investment income | |
| R&D expenses | 260,975,311.10 | 225,955,797.33 | 15.50% |
The Company shall comply with the disclosure requirements for companies engaging in food & liquorand wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation ofListed Companies—Industry-specific Information Disclosure.
4.3.1. Breakdown of selling and distribution expenses
Unit: CNY
| Selling and distribution expenses | 2024 | 2023 | YoY Change | Reason for any significant change |
| Advertising expenses | 1,548,153,847.96 | 1,614,086,963.33 | -4.08% | |
| Sales promotion expenses | 1,109,741,814.61 | 1,479,620,839.26 | -25.00% | |
| Warehousing and logistics expenses | 162,568,387.89 | 198,741,925.26 | -18.20% |
Labor costs
| Labor costs | 387,418,851.76 | 297,757,314.24 | 30.11% | Mainly due to the increase in accrued remunerations for sales staff in the year |
| Other | 330,499,713.77 | 384,218,484.83 | -13.98% |
4.3.2. Breakdown of advertising expenses
Unit: CNY
| Advertising | Expenses |
| Online advertising (exclusive of TV advertising) | 140,288,998.95 |
| Offline advertising | 317,843,979.92 |
| TV advertising | 316,513,059.44 |
Other (inclusive of branding ideas, exhibitions & showcases, advertising materials, activityplanning, etc.)
| Other (inclusive of branding ideas, exhibitions & showcases, advertising materials, activity planning, etc.) | 773,507,809.65 |
4.4. R&D investments
? Applicable ? N/A
| Major R&D projects | Purpose | Progress | Specific objectives | Expected impact on the Company |
| Thermochemical Energy- and Resource-based Coupled Utilization Technology of Brewing Waste | The project is a national key R&D program during the "13th Five-year Plan" period undertaken by Luzhou Laojiao, which aims to realize the energy- and resource-based utilization of brewing waste with thermochemical technology, and develop a complete set of intelligent equipment systems for the resource- and energy-based utilization of brewing waste. | This project successfully passed the acceptance review by the Ministry of Science and Technology in August 2024. Focusing on brewing waste (discarded grains) as the research subject, the project adopted technologies such as high-efficiency drying and thermochemical conversion of biomass to thermally decompose the discarded grains into pyrolysis gas and biochar. The pyrolysis gas is | To develop an intelligent equipment system with packaged technology for the resource- and energy-based utilization of brewing waste, successfully build a demonstration base for the project industrialization, and achieve resource- and energy-based utilization of brewing waste to ensure the low-carbon, green development of the Chinese baijiu industry. | Realize a large-scale resource- and energy-based utilization of brewing waste and achieve both ecological and economic benefits. |
| reused as energy in the distilling process, while the biochar serves as an organic fertilizer for sorghum cultivation. The project established the industry’s first demonstration project for the coupled utilization of energy and resources from brewing waste, with an annual processing capacity of 100,000 tons. It achieved a resource utilization rate of over 90% for brewing waste and a gas energy recycling rate of over 95%, filling the technological gap in thermochemical treatment of brewing waste (discarded grains) and promoting breakthroughs in key general technologies for the efficient conversion and safe disposal of organic solid waste under the solid waste resource utilization initiative. | ||||
| Study on the Expression Regulation of Key Genes in Leaven Microorganisms in China and Japan and the Improvement of Chinese Leaven Quality | The project is an international project that the Company jointly undertook, which studies the evolution pattern and formation mechanism of microbiomes during the natural leaven-marking and fermentation, and screens for microbial strains with specific functions for the production of functional enhanced leaven. | This project successfully passed the acceptance review by the Ministry of Science and Technology in August 2024. Centered on the formation mechanism and quality improvement of strong aroma Daqu, light aroma Daqu, and light aroma Xiaoqu, the project carried out a study on the diversity of microorganisms in fermentation starters and systematically analyzed the | To develop functional leaven according to different quality indicator requirements based on functional leaven-marking microorganisms and key gene expression regulation, systematically evaluate the efficacy of leaven and optimize the process. | Improve the leaven and baijiu quality and enhance the Company's core competitiveness. |
| microbial community structure and metabolic characteristics of fermentation starters. Four strains were isolated; key genes related to starch decomposition and sugar production were studied. The research on fortified Daqu was completed, and functional enhanced fermentation starters were developed. | ||||
| High-value Patent Incubation Center Project of Luzhou Laojiao | The project is to implement national standards for intellectual property management, and achieve efficient management of the Company in the creation, application and protection of intellectual property. An all-round layout of intellectual property is made around the core key technologies of the industrial chain to promote the creation of high-quality patents and build a patent pool for core technologies. | The Company continuously improved the enterprise’s intellectual property management system, passed the annual supervision and audit of the management system, and strengthened the review of IP clauses in technology contracts. Focusing on key brewing technologies, the Company fully utilized patent analysis tools to conduct competitive situation analysis and layout analysis. Patent risk warning measures were reinforced through regular monitoring and analysis of key technical outcomes in relevant branches. The Company also organized high-value patent cultivation training and mining workshops, comprehensively enhancing R&D personnel’s awareness of innovation, drafting competence, and | The Company has strengthened the close integration of intellectual property creation and protection with the whole process of technological innovation, enhanced the capability of the enterprise to create intellectual property and prevent potential intellectual property risks. The Company has strengthened the analysis and application of patent information, laid out and explored intellectual property around core key technologies, and formed a series of high-value patents with technical, economic, and legal value. | The Company has established a sound intellectual property management system, strengthened the creation and protection of intellectual property, and enhanced the core competitiveness of the enterprise. |
| protection capabilities. | ||||
| Establishment of Sichuan Innovation Center for Solid-state Brewing Technologies | Luzhou Laojiao took the lead to jointly build the Sichuan Innovation Center for Solid-state Brewing Technologies with several universities, institutes and other enterprises, aiming to overcome a batch of core technological challenges in solid-state brewing and facilitate the development of the solid-state brewing sector. | In research areas such as brewing processes and intelligentization, fermentation mechanisms and microbiology, as well as flavor and health, the Company continuously advanced innovation, R&D, and application of key common technologies and cutting-edge leading technologies across the industry chain. These efforts supported solid-sate brewing technology research, industry exchanges, result transformation and talent training. Relying on the Innovation Center as the carrier, Luzhou Laojiao initiated the establishment of the “Solid-state Brewing Technology Innovation Alliance in the Chengdu-Chongqing Twin City Economic Circle” and convened the “2024 Annual Meeting of the Sichuan Innovation Center for Solid-state Brewing Technologies and the Solid-state Brewing Technology Innovation Alliance in the Chengdu-Chongqing Twin City Economic Circle”, at which the Alliance’s 2024 project proposals were announced. | To gathering innovative resources in solid-state brewing, create an innovation alliance in the solid-sate brewing sector, make breakthroughs in core key technologies in the solid-sate brewing sector, and form a science and technology innovation center with national influence. | Successfully build a technological innovation platform, thereby improving the Company's scientific and technological innovation capabilities and level. |
| A Study on the Optimization of Key Intelligent Equipment and the System Control for Brewing | By applying modern technologies such as intelligent sensing, image recognition, spectral technology | Luzhou Laojiao carried out industry-university-research cooperation with universities and | To build an intelligent brewing demonstration production line. | Level up the Company's intelligent brewing and promote the transformation and upgrading of the |
| and bio-chips, the project aims to develop core technologies for each link of brewing production, including fermentation, vinasse-based ingredient making, distillation of grains in retorts and baijiu selection, and build intelligent brewing production lines with independent optimization, production decision-making and execution capabilities to comprehensively upgrade the solid-state brewing technologies in the baijiu industry. | research institutes in the field of intelligent brewing, deeply analyzed traditional production processes and fermentation principles, innovatively applied simulation technology, automation technology, online testing, industrial robots, big data analysis, intelligent decision-making and other technologies to the brewing engineering renovation project of Luzhou Laojiao. These efforts addressed challenges in data collection, intelligent equipment development, and real-time process optimization in traditional brewing, realizing full-process intelligent production covering raw and auxiliary materials storage, brewing operations, distillers’ grain fermentation, and base Baijiu management. | traditional brewing industry. | ||
| Construction of the Brewing Microbial Resources and Data Platform | The project aims to carry out collection of brewing microbial resources, rapid isolation, authentication, review and transfer of microbial resources in the brewing process of baijiu and development of excellent strains for industrial use, establish a brewing microbial strain library and related enzymology library, and promote the | Luzhou Laojiao carried out industry-university-research cooperation with universities, and based on the analysis of the metabolic mechanisms of the microbial flora in the mud of the 400-year-old national treasure fermentation pit, completed diversity analysis on over 1,000 brewing samples, identified and preserved more than 2,000 microbial | To establish a brewing microbial strain bank of a certain scale, which can achieve long-term safe preservation of strains and is supplemented by special information technology to manage strain information. | Master the core resources of baijiu brewing microorganisms and enhance the Company's ability to protect and utilize brewing microbial resources. |
| protection, sharing and sustainable utilization of brewing microbial resources. | strains, and obtained flavor compound data for over 300 strains and whole-genome sequencing data for over 200 strains. The Company screened and obtained a series of new species and key functional microorganisms such as the “Laojiao Lactobacillus”, “Laojiao Syntrophococcus”, and “Laojiao Clostridium”, and filed 21 applications for invention patents related to functional strains, of which four have been granted. |
Information about R&D personnel
| 2024 | 2023 | YoY Change | |
| Number of R&D personnel | 475 | 468 | 1.50% |
| R&D personnel as % of total employees | 12.40% | 12.55% | -0.15% |
| Educational backgrounds of R&D personnel | |||
| Bachelor’s degree | 276 | 307 | -10.10% |
| Master’s degree | 149 | 131 | 13.74% |
| Doctoral degree (including postdoctoral workstations) | 50 | 30 | 66.67% |
| Age structure of R&D personnel | |||
| Below 30 | 188 | 217 | -13.36% |
| 30~40 | 207 | 204 | 1.47% |
Information about R&D investments
| 2024 | 2023 | YoY Change | |
| R&D investments (CNY) | 280,166,160.16 | 267,474,647.16 | 4.74% |
| R&D investments as % of operating revenues | 0.90% | 0.88% | 0.02% |
| Capitalized R&D investments (CNY) | 0.00 | 0.00 | 0.00% |
| Capitalized R&D | 0.00% | 0.00% | 0.00% |
investments as % oftotal R&D investments
Reason for any significant change in the composition of R&D personnel and the impact? Applicable ? N/A
Reason for any significant YoY change in the percentage of the R&D investments in the operatingrevenues? Applicable ? N/A
Reason for any sharp variation in the percentage of the capitalized R&D investments and rationale? Applicable ? N/A
4.5. Cash flows
Unit: CNY
| Item | 2024 | 2023 | YoY Change |
| Subtotal of cash inflows from operating activities | 41,014,285,259.97 | 32,865,186,758.61 | 24.80% |
| Subtotal of cash outflows from operating activities | 21,832,516,896.32 | 22,216,821,823.15 | -1.73% |
| Net cash flows from operating activities | 19,181,768,363.65 | 10,648,364,935.46 | 80.14% |
| Subtotal of cash inflows from investing activities | 2,277,579,273.71 | 1,933,604,489.48 | 17.79% |
| Subtotal of cash outflows from investing activities | 3,660,085,206.26 | 3,201,722,342.48 | 14.32% |
| Net cash flows from investing activities | -1,382,505,932.55 | -1,268,117,853.00 | |
| Subtotal of cash inflows from financing activities | 2,000,079,496.11 | 6,860,373,039.14 | -70.85% |
| Subtotal of cash outflows from financing activities | 12,328,932,533.79 | 8,078,799,107.43 | 52.61% |
| Net cash flows from financing activities | -10,328,853,037.68 | -1,218,426,068.29 | |
| Net increase in cash and cash equivalents | 7,474,638,736.60 | 8,164,022,685.99 | -8.44% |
Explanation of why the data above varied significantly
? Applicable ? N/ANet cash flows from operating activities increased by 80.14%, mainly due to the increased cashreceived from sales and discounted notes in the current period.
Explanation of main reasons leading to the material difference between net cash flows from operatingactivities during the reporting period and net profit for the year? Applicable ? N/AThis is mainly due to the effects of the honoring of due notes, the discounting of notes, and theincreased advance payments from suppliers on net cash flows from operating activities in the year.
5. Analysis of non-core business
? Applicable ? N/A
6. Assets and liabilities
6.1. Significant change of asset items
Unit: CNY
| At the end of 2024 | At the beginning of 2024 | Change in percentage | Reason for any significant change | |||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Cash and cash equivalents | 33,578,396,831.33 | 49.14% | 25,952,025,091.28 | 41.00% | 8.14% | |
| Accounts receivable | 11,022,302.31 | 0.02% | 17,461,378.98 | 0.03% | -0.01% | |
| Contract assets | 0.00% | 0.00% | 0.00% | |||
| Inventories | 13,392,794,475.96 | 19.60% | 11,622,043,947.46 | 18.36% | 1.24% | |
| Investment property | 50,246,694.16 | 0.07% | 37,785,416.77 | 0.06% | 0.01% | |
| Long-term equity investments | 2,801,252,317.93 | 4.10% | 2,708,254,833.50 | 4.28% | -0.18% | |
| Fixed assets | 9,131,776,915.51 | 13.36% | 8,613,223,465.46 | 13.61% | -0.25% | |
| Construction in progress | 807,233,988.90 | 1.18% | 1,718,468,880.53 | 2.72% | -1.54% | |
| Right-of-use assets | 29,254,214.23 | 0.04% | 23,260,955.23 | 0.04% | 0.00% | |
| Short-term loans | 0.00% | 0.00% | 0.00% | |||
| Contract liabilities | 3,978,131,528.88 | 5.82% | 2,672,977,090.30 | 4.22% | 1.60% | |
| Long-term loans | 6,279,900,000.00 | 9.19% | 10,000,300,000.00 | 15.80% | -6.61% | Mainly due to the repayment of due bank loans, and the |
| reclassification of bank loans due soon as non-current liabilities due within one year | ||||||
| Lease liabilities | 24,528,519.13 | 0.04% | 22,356,404.47 | 0.04% | 0.00% |
Whether overseas assets account for a larger proportion in total assets? Applicable ? N/A
6.2. Assets and liabilities measured at fair value
? Applicable □ N/A
Unit: CNY
| Item | Opening balance | Changes in fair value through profit or loss | Changes in cumulative fair value recorded into equity | Provision for impairment | Amount of purchase | Amount of sale | Other changes | Closing balance |
| Financial asset | ||||||||
| 1.Held-for-trading financial assets (exclusive of derivative financial assets) | 1,426,992,098.83 | 27,528,769.00 | 2,460,000,000.00 | 2,220,238,571.86 | 1,694,282,295.97 | |||
| 4.Investments in other equity instruments | 402,893,468.80 | 150,915,802.27 | 407,194,706.55 | |||||
| 6. Accounts receivables financing | 5,938,171,007.93 | -4,136,223,552.15 | 1,801,947,455.78 | |||||
| Subtotal of financial assets | 7,768,056,575.56 | 27,528,769.00 | 150,915,802.27 | 0.00 | 2,460,000,000.00 | 2,220,238,571.86 | -4,136,223,552.15 | 1,694,282,295.97 |
| Total | 7,768,056,575.56 | 27,528,769.00 | 150,915,802.27 | 0.00 | 2,460,000,000.00 | 2,220,238,571.86 | -4,136,223,552.15 | 3,903,424,458.30 |
| Financial liability | 9,763.87 | -9,870.60 | 106.73 | 0.00 | ||||
Contents of other changesNone
Whether measurement attribution of main assets changes significantly in this year
?Yes ? No
6.3. Restricted asset rights as of the end of this reporting period
| Item | Closing balance | Reason |
| Other cash and cash equivalents (CNY) | 10,000,000.00 | Restricted security deposits for bank guarantees |
| Other cash and cash equivalents (CNY) | 1,627,857.48 | Restricted security deposits at e-commerce platforms |
| Bank deposits (CNY) | 181,100,955.95 | Accrued interest on term deposits |
| Other cash and cash equivalents (CNY) | 18,000,003.44 | Judicially frozen |
| Total | 210,728,816.87 |
7. Investment
7.1. Total investment
? Applicable ? N/A
| Investment made in the reporting period (CNY) | Investment made in the prior year (CNY) | YoY change |
| 2,954,722,709.66 | 3,415,581,665.59 | -13.49% |
7.2. Significant equity investment made in the reporting period
? Applicable ? N/A
7.3. Significant ongoing non-equity investment in the reporting period
? Applicable □ N/A
Unit: CNY
| Item | Investment form | Whether it is a fixed asset investment | Industry of the investment project | Amount of input in the reporting period | Accumulated actual input amount by the end of the reporting period | Capital source | Project progress | Projected income | Accumulated actual income by the end of the reporting period | Reasons for not meeting the schedule and projected income | Date of disclosure (if any) | Disclosure index (if any) |
| Luzhou | Self- | Yes | Baijiu | 288,54 | 1,077,3 | Self- | 30.00% | 0.00 | 0.00 | N/A | 13 July | Announ |
| Laojiao Technical Upgrade Project of Intelligent Brewing (Phase I) | built | 2,548.08 | 98,554.89 | financing | 2022 | cement on the Implementation of Luzhou Laojiao Technical Upgrade Project of Intelligent Brewing (Phase I) by Subsidiary | ||||||
| Total | -- | -- | -- | 288,542,548.08 | 1,077,398,554.89 | -- | -- | 0.00 | 0.00 | -- | -- | -- |
7.4. Financial assets investment
7.4.1. Securities investment
? Applicable □ N/A
Unit: CNY
| Category of securities | Stock code | Abbreviation of securities | Initial investment cost | Accounting measurement model | Beginning book balance | Changes in fair value recognized in profit or loss | Changes in the cumulative fair value recorded into equity | Amount of purchase | Amount of sale | Profit and loss during the reporting period | Closing book balance | Accounting item | Capital source |
| Domestic and foreign stock | 601211 | GTJA | 12,719,156.76 | Fair value measurement | 175,241,715.34 | 206,921,837.27 | 6,477,348.35 | 219,640,994.03 | Investments in other equity instruments | Own fund | |||
| Domestic and foreign stock | 002246 | SNC | 1,030,000.00 | Fair value measurement | 12,805,515.44 | 14,840,083.24 | 78,177.75 | 15,870,083.24 | Investments in other equity | Own fund |
| instruments | |||||||||||||
| Domestic and foreign stock | 01983 | LZBANK | 51,120,000.00 | Fair value measurement | 96,733,837.69 | 27,236,318.99 | 3,905,280.00 | 78,356,318.99 | Investments in other equity instruments | Own fund | |||
| Domestic and foreign stock | 01880 | CTG Duty-Free | 542,285,380.80 | Fair value measurement | 84,854,489.68 | -91,129,295.64 | 2,015,648.45 | 60,069,399.64 | Investments in other equity instruments | Own fund | |||
| Total | 607,154,537.56 | -- | 369,635,558.15 | 0.00 | 157,868,943.86 | 0.00 | 0.00 | 12,476,454.55 | 373,936,795.90 | -- | -- | ||
7.4.2. Derivative investment
? Applicable ? N/ANo such cases in the reporting period
7.5. Use of funds raised
? Applicable ? N/A
7.5.1. General use of funds raised
? Applicable ? N/A
Unit: CNY 10,000
| Year | Method | Date of securities listing | Total amount of funds raised | Net proceeds (1) | Total amount of raised funds used in the reporting period | Accumulated amount of raised funds used (2) | Raised funds used as % of total raised funds at the end of the reporting period (3) = (2) / | Total amount of re-purposed funds raised in the reporting period | Total amount of accumulated re-purposed funds raised | Accumulated re-purposed funds raised as % of total funds raised | Total amount of unused funds raised | Purpose and direction of unused funds raised | Amount of funds raised idle for more than two years |
| (1) | |||||||||||||
| 2020 | Public offering of corporate bond | March 17, 2020 | 150,000 | 149,000 | 25,408.69 | 136,444.23 | 91.57% | 0 | 0 | 0.00% | 21,099.08 | Deposited in special account for raised funds | 0 |
| Total | -- | -- | 150,000 | 149,000 | 25,408.69 | 136,444.23 | 91.57% | 0 | 0 | 0.00% | 21,099.08 | -- | 0 |
| Notes for general use of funds raised | |||||||||||||
| The total amount of unused funds raised of the corporate bond “20 Laojiao 01” includes interest on some funds raised. | |||||||||||||
7.5.2. Fund raised for committed projects
? Applicable ? N/A
Unit: CNY 10,000
| Financing project | Date of securities listing | Committed investment projects and direction of over-raised funds | Project nature | Whether the project has been changed (including partial change) | Total amount of funds raised for committed investment | Adjusted Investment total amount (1) | Investment amount in the reporting period | Accumulated input by the end of the reporting period (2) | Investment progress by the end of reporting period (3)＝(2)/(1) | Date of the projects reach the working condition for their intended use | Realized benefits during the reporting period | Cumulative realized benefits by the end of the reporting period | Whether the expected benefits have been achieved | Whether the feasibility of the project has changed significantly |
| Committed investment projects | ||||||||||||||
| 2020 Public Offering of Corporate Bond for Qualified Investors | March 17, 2020 | Technical Renovation Project of Brewing (Phase II) | Production and construction | No | 398,400 | 398,400 | 23,174.4 | 352,672.27 | 97.77% | June 30, 2021 | N/A | N/A | Yes | No |
| 2020 Public Offering of Corporate Bond for Qualifi | March 17, 2020 | Project of Intelligent Upgrading and Building of | Operation and management | No | 2,234.28 | 19,830.25 | N/A | N/A | N/A | No | No | |||
| ed Investors | the Information Management System | |||||||||||||
| 2020 Public Offering of Corporate Bond for Qualified Investors | March 17, 2020 | Project of Acquiring Sealing Equipment for the Cellar of Huangyi Brewing Base | Production and construction | No | 0 | 12,043.3 | June 30, 2021 | N/A | N/A | Yes | No | |||
| 2020 Public Offering of Corporate Bond for Qualified Investors | March 17, 2020 | Project of Acquiring Accessory Equipment for Leaven Making for Huangyi Brewing Base | Production and construction | No | 0 | 4,980.25 | June 30, 2021 | N/A | N/A | Yes | No | |||
| Subtotal of committed investment projects | -- | 398,4001 | 398,400 | 25,408.68 | 389,526.07 | -- | -- | -- | -- | |||||
| Use of over-raised funds | ||||||||||||||
| None | ||||||||||||||
| Total | -- | 398,400 | 398,400 | 25,408.68 | 389,526.07 | -- | -- | 0 | 0 | -- | -- | |||
| Explain project by project the situation and reason for not reaching plan progress or expected benefits (including | N/A | |||||||||||||
| reason for inputting “N/A” for “Whether the expected benefits have been achieved”) | |
| Significant changes of project feasibility | N/A |
| Amount, purpose and progress of over-raised funds | N/A |
| Change of implementation site of investment projects | N/A |
| Adjustment of the implementation mode of raised funds investment projects | N/A |
| Situation of advance investment and replacement | Applicable |
| On May 14, 2019, the Company held the First Extraordinary General Meeting of Shareholders of 2019, which considered and approved the Proposal on Requesting the Company’s General Meeting of Shareholders to Fully Authorize Chairman of the Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond. According to the Proposal, in the event of inconsistency between the payment of the raised funds and the progress of the project implementation, the Company may make advance investments using other funds (including self-owned funds, bank project loans, etc.) according to the actual situation, and replace fund investment other than capital funds when the raised funds are in place. As of December 31, 2024, the Company had replaced advance investments of self-pooled funds of CNY 653,444,758.68 using the raised funds. | |
| Idle raised funds used for temporary supplementary liquidity | N/A |
| Amount and reason for surplus of funds raised | N/A |
| Purpose and whereabouts of unused funds raised | The idle raised funds are deposited in the special account No. 9550880046723000135 for raised funds in the Chengdu Branch of China Guangfa Bank Co., Ltd., the special account No. 517517460013000000860 for raised funds in the Luzhou Branch of Bank of Communications Co., Ltd., and the special account No. 631395395 for raised funds in the Chengdu Branch of China Minsheng Banking Corp., Ltd. |
| Problems and other situation when raised funds are used and disclosed | N/A |
Note 1: The subtotal of funds raised for committed projects was CNY 3,984 million, which was thecombined amount of CNY 4,000 million (CNY 2,500 million of corporate bonds issued in August 2019plus CNY 1,500 million of corporate bonds issued in March 2020) minus the total issuance costs ofCNY 16 million.
Note 2: Because there are uncertainties in the approval and issue time for bond, in order to ensuresmooth progress of the projects and protect the interests of the Company’s shareholders, theinvestment sequence and specific amounts of the corresponding raised funds should be determinedby the Chairman of the Board as authorized by the general meeting of shareholders or other personsas authorized by the Board of Directors within the scope of the four raised funds investment projectsaccording to the actual needs, provided that the capital funds for each project is no less than 20% ofthe total investment.
Note 3: As of December 31, 2024, the Project of Intelligent Upgrading and Building of the InformationManagement System was in the process.
Note 4: These raised funds investment projects have helped further expand the Company’sproduction and sales, and increase its comprehensive competitiveness. The economic benefits ofthese projects cannot be measured separately.
7.5.3. Re-purposed funds raised
? Applicable ? N/ANo such cases in the reporting period
8. Sale of major assets and equity interests
8.1. Sale of major assets
? Applicable ? N/ANo such cases in the reporting period.
8.2. Sale of major equity interests
? Applicable ? N/A
9. Analysis of major subsidiaries
? Applicable ? N/AMain subsidiaries and joint companies with an over 10% influence on the Company’s net profit
Unit: CNY
| Company name | Company type | Business scope | Registered capital | Total assets | Net assets | Operating Revenue | Operating profit | Net profit |
| Luzhou Laojiao Sales Co., Ltd. | Subsidiary | Sales of baijiu series such as “National Cellar 1573” and “Luzhou Laojiao” | 100,000,000.00 | 8,401,258,791.55 | 2,466,368,056.96 | 30,018,996,416.68 | 13,027,763,327.45 | 9,732,243,326.25 |
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable ? N/A
Notes for major holding companies and joint stock companiesNone
10. Structured entities controlled by the Company
? Applicable ? N/A
11. Outlook for the future development of the Company
11.1. Industry landscape and trends
A. According to data from the National Bureau of Statistics and the China Alcoholic DrinksAssociation, in 2024, baijiu enterprises above the designated size nationwide produced a total of
4.145 million kiloliters of baijiu, representing a year-on-year decrease of 1.8%. These enterprisesgenerated sales revenue of CNY 796.384 billion and total profit of CNY 250.865 billion. In recentyears, production volume among baijiu enterprises above the designated size has continued todecline, as the baijiu industry undergoes a transformation from extensive to refined development,from volume-driven to quality-oriented growth, and from high-speed to high-quality development.B. At present, alcohol consumption has entered a “dual rationality era” characterized by both pricerationality and consumption rationality. Consumers are placing greater emphasis on health factorsand social responsibility in alcohol consumption, demanding that companies elevate product andservice standards in terms of quality and safety. Baijiu enterprises must continuously adapt, enhanceintrinsic value, and explore new growth paths.
C. Baijiu marketing has evolved through the product era and channel era, and is now in aconvergence period of the brand era, traffic era, and cultural era. Particularly, as the “traffic era”enters a stage of deep development, enterprises must focus on attracting, converting, and utilizingconsumer traffic, innovating brand communication strategies to enhance brand recognition, reach,and engagement.D. The trend toward younger consumer demographics has increasingly become a key challenge forthe sustainable development of the baijiu industry. Younger consumers, especially Gen Z, exhibitmore rational consumption behavior and prefer personalized expressions in alcoholic beverages,“self-love” elements, and favored consumption scenarios. Enterprises need to focus on visual appeal,taste, brand storytelling, and the sensory experience after consumption to meet young consumers’motivational needs and desires for “self-love”.
11.2. The Company’s development strategy
11.2.1. Development opportunities in the future
A. Since 2024, the Party and the government have introduced a series of policy packages to addressnew situations and challenges in economic operations, aiming to promote stable growth, structuraloptimization, and positive momentum in the economy. China’s industrial system remainscomprehensive, with strong supporting capabilities and a continued role as the “world’s factory”. TheChinese economy possesses robust resilience and strong capabilities, while domestic consumersretain substantial purchasing power. In this context, baijiu consumption maintains both inertia andpotential with a solid foundation.B. In recent years, the baijiu industry has continuously enhanced innovation and application of keytechnologies, facilitating industrial upgrading. The proportion of high-quality base Baijiu has increasedsignificantly, effectively mitigating risks of declining quality reputation. Through standard-setting, jointrisk prevention, and collaborative anti-counterfeiting efforts, the industry has effectively safeguardedintellectual property rights. By pursuing diversified development and differentiated competition, adiversified and harmonious brand landscape has been formed, enhancing resilience to consumptionadjustments and competition from foreign liquor brands. The future of China’s baijiu industry will behealthier and more sustainable.C. Digitalization and intelligentization are central themes for future economic and social development,and serve as key drivers of enterprise competitiveness. The Company is actively advancing theconstruction of “Digital and Intelligent Luzhou Laojiao”, establishing a digital-intelligent ecosystemfeaturing “one framework, five transformations, and five connected flows”, which has effectivelyrealized digital-intelligent management, intelligent production, and smart marketing, thereby securinga first-mover advantage for future competition.
11.2.2. Possible challenges and risks in the future
The trend of market concentration—where strong players grow stronger and weaker players fallfurther behind—will become more pronounced in the baijiu industry. Leading production regions,enterprises, and brands will continue to consolidate their market positions. Well-known Baijiu brandsface significant challenges of differentiation across product lines. The downward channel expansionand pricing adjustments by leading brands and regions will intensify competition, prompting brands tooptimize strategies, reposition products to attract consumers, and accelerate reshuffling within theindustry.
11.2.3. The Company's "14th five-year" development strategyNo change occurred to the Company’s "14th five-year" development strategy. For details, see the2021 Annual Report.
11.3. Completion of the business plan in 2024
For the reporting period, operating revenue amounted to CNY 31.196 billion, up 3.19% year on year;and the net profit attributable to the shareholders of the listed company reached CNY 13.473 billion,up 1.71% year on year. The Company has failed to complete its business target “to achieve a year-on-year increase in operating revenue by at least 15%" as set by the Board of Directors at thebeginning of the year. This is primarily driven by the clear shift and divergence in the supply-demandstructure of alcohol consumption in recent years. The market has entered a stock-driven phase, andas the economy transitions to new growth drivers, the baijiu industry is also entering a new stage ofdevelopment. Guided by the principle of high-quality development, the Company will make everyeffort to promote the construction of “Digital and Intelligent Luzhou Laojiao”, ensure healthy channeloperations and stable pricing systems, and strive to achieve long-term returns on industrial value andsustainable corporate development.
11.4. Business plan in 2025
2025 marks the final and critical year of the Company’s 14th Five-Year Plan. In accordance with the2025 Production and Operation Guidelines approved by the Board of Directors, the Company willfocus on the annual theme of “Building Momentum for Breakthroughs, Advancing Stable Growththrough Intensive Cultivation; Seizing Opportunities to Drive Development through Reform andInnovation”. The Company will promote high-quality development with the goal of achieving steadyprogress in annual operating revenue. (The business plan in 2025 is formulated by the Companyaccording to the 14th five-year strategic plan and based on its business capabilities. It does notrepresent the Company's profit forecast for 2025, and is not a commitment by the Company. Whetherit can be achieved depends on many factors such as changes in market conditions and efforts of theoperation team. There are great uncertainties. Investors are kindly reminded to pay special attention).The main work plan is as follows:
A. Building momentum for breakthroughs, advancing stable growth through intensivecultivationa. Focusing on three priorities to ensure sales investmentFirst, the Company will vigorously “expand coverage” by accelerating market and teamexpansion, intensively cultivating base markets, and continuing to make breakthroughs in strategicmarkets. The sales team will strengthen talent reserves and expand personnel when appropriate.Second, the Company will vigorously “increase bottle opening” by promoting the five-codecorrelation and enabling digital intelligence, intensifying public relations efforts, guiding consumptionorientation, and encouraging bottle opening and consumption. Third, the Company will vigorously“expand touchpoints” by optimizing distributor selection, broadening channels, and enhancingterminal display, thereby increasing product availability and ensuring stable and healthy sales growth.b. Focusing on three tasks to maintain healthy market conditions
First, the Company will enhance operational capability by implementing digital-intelligent marketmanagement, intensifying market inspections and anti-counterfeiting efforts, and safeguarding thecore interests of the Company and consumers. Second, the Company will increase channelprofitability by closely monitoring customer profitability and maintaining a profit margin higher thanthat of competing products. Third, the Company will strengthen brand image by firmly upholdingprice stability and brand positioning, ensuring that the National Cellar 1573 maintains its positionamong the “three high-end baijiu brands”, while Luzhou Laojiao series products remain firmlyestablished in their respective price ranges.c. Seizing three strategic high grounds to build competitive moatsFirst, the Company will seize the cultural high ground by leveraging the historic opportunity of theChina Baijiu Museum being established in Luzhou. The Company will enhance the display andpresentation of the “Living Dual National Treasures” and historical artifacts, and develop culturalexperience scenarios to create strong consumer appeal. Second, the Company will seize thebrand high ground by building an integrated internal and external brand communication matrix,updating and upgrading promotional campaigns, enhancing evaluation of promotional effectiveness,and creating strong momentum to empower sales. Third, the Company will seize the innovationhigh ground by unwaveringly advancing “lower alcohol content, younger consumer orientation,scenario-based consumption, and digital and intelligent transformation”, striving to keep pace withrapid innovation cycles and, where appropriate, develop ahead of the curve.
B. Seizing opportunities to drive development through reform and innovationa. Enhancing core technologies to strengthen support for developmentIn quality assurance, the Company will uphold solid-state pure grain fermentation, comprehensivequality management throughout the process, and standards that exceed national requirements. Inproduction assurance, the “Huangyi Brewery Eco-Park” and the “Intelligent Packaging Center” willfully leverage new productive forces and dynamically adjust production output based on salesdemand. In traditional brewing areas, the Company will advance integrated development ofproduction and exhibition. In R&D assurance, the Company will focus on delivering tangibleresults—transforming more research into productive capacity, securing more awards through patentapplications, and actively pursuing provincial and national science and technology accolades. TheCompany will also strengthen science communication and innovation outreach to deepen consumerunderstanding and appreciation of baijiu.b. Enhancing core capabilities to win in market competitionIn service improvement, the Company will shift from traditional control-oriented thinking to service-oriented thinking. The management system must excel both as a “manager” and a “service provider”.In efficiency improvement, the Company will ensure continued safe and sound development whilefurther optimizing systems and processes to build a modern management system that is responsiveand efficient. In talent development, the Company will focus on cultivating, supporting, developing,and empowering its people—providing opportunities for those who are motivated, platforms for thosewho are capable, and incentives for those who deliver—thereby enhancing employees’ sense ofbelonging, happiness, and achievement.c. Upholding core principles to ensure steady and sustainable progress
First, the Company will strengthen Party building by enhancing political, ideological,organizational, and institutional development to foster unity and collective momentum. Second, theCompany will reinforce integrity by emphasizing accountability, strengthening oversight, promotingsound conduct, and adopting both preventive and corrective measures to uphold Luzhou Laojiao’spositive reputation in the industry. Third, the Company will strengthen safety and environmentalprotection by comprehensively identifying and addressing issues and laying a solid foundation inthese areas. Fourth, the Company will enhance its sense of responsibility by ensuring soundcorporate governance that is accountable to shareholders and by fulfilling its social responsibilitiesthrough advancing ESG system development and contributing to a harmonious society.
12. Visits paid to the Company for purposes of research,communication, interview, etc. in the reporting period? Applicable ? N/A
| Date of visit | Place of visit | Way of visit | Type of visitor | Visitor | Main inquiry information and materials provided | Index to main inquiry information |
| March 19, 2024 | Conference Center of Huaxi Securities | Field survey | Institution | Institutional investor | Industry trends and company performance | http://www.cninfo.com.cn/ |
| April 29, 2024 | Company Headquarters | Communication through an online platform | Institution | Institutional investor | Industry trends and company performance | http://www.cninfo.com.cn/ |
| May 9, 2024 | Company Headquarters | Communication through an online platform | Other | All investors | Industry trends and company performance | http://www.cninfo.com.cn/ |
| June 27, 2024 | Company Headquarters | Field survey | Institution | Institutional and individual investors and media | Industry trends and company performance | http://www.cninfo.com.cn/ |
| September 2, 2024 | Company Headquarters | Communication through an online platform | Institution | Institutional investor | Company performance | http://www.cninfo.com.cn/ |
| September 12, 2024 | Company Headquarters | Communication through an online platform | Other | All investors | Industry trends and company performance | http://www.cninfo.com.cn/ |
| November 1, 2024 | Company Headquarters | Communication through an online platform | Institution | Institutional investor | Industry trends and company performance | http://www.cninfo.com.cn/ |
13. Development and implementation of market value management rules andvaluation enhancement planIndicate whether the Company has developed market value management rules.? Yes □ NoIndicate whether the Company has disclosed its valuation enhancement plan.
□ Yes ? No
In order to strengthen the Company's market value management, effectively promote the Company toenhance investment value, enhance investor returns and safeguard investor interests, in accordancewith the Company Law of the People's Republic of China, the Securities Law of the People's Republicof China, the Information Disclosure Management Measures for Listed Companies, the ListedCompany Regulatory Guideline No. 10 - Market Value Management and other applicable laws,regulations, normative documents and the Company's Articles of Association, etc., the Market ValueManagement Rules of Luzhou Laojiao Co., Ltd. has been formulated upon approval at the SixthMeeting of the11th Board of Directors.
14. Implementation of the action plan for "Dual Enhancement ofDevelopment Quality and Shareholder Returns"Indicate whether the Company has disclosed its action plan for "Dual Enhancement of DevelopmentQuality and Shareholder Returns".? Yes □ NoIn accordance with the guiding ideology of "further invigorating the capital market and boosting investorconfidence" proposed at the Political Bureau meeting of the CPC Central Committee and "vigorouslyimproving the quality and investment value of listed companies, taking more powerful and effectivemeasures, and focusing on stabilizing the market and confidence" proposed at the State CouncilExecutive Meeting, in order to safeguard the interests of all shareholders, boost investor confidence,and promote the long-term healthy and sustainable development of the Company, Luzhou Laojiao Co.,Ltd. (hereinafter referred to as "the Company") has formulated its action plan for "Dual Enhancement ofDevelopment Quality and Shareholder Returns" in combination with the Company's developmentstrategy, business picture, and financial condition. The specific measures are as follows:
A. Strengthening confidence in strategic planning and aiming at the Company's developmentgoalsThe Company has formulated the "136" strategic plan for the 14th Five-Year Plan based on thedevelopment idea of "giving play to advantages, tackling areas of weaknesses, improving quality,building strength, and seeking rejuvenation". Specifically, "1" refers to one development goal, namely,firmly insisting on the goal of regaining the "Top 3" ranking among the Chinese baijiu industry; "3" refersto three major development principles, namely, insisting on brand leadership and fully enhancing thevalue of Chinese famous baijiu brands, insisting on taking quality as foundation and sparing no effortsto build a core production area of world famous baijiu, and insisting on take culture as the foundation
and striving to build a pilgrimage site for Chinese baijiu culture; "6" refers to "Six-in-One" LuzhouLaojiao, namely, building a strong-brand Luzhou Laojiao, a quality Luzhou Laojiao, a cultural LuzhouLaojiao, an innovative Luzhou Laojiao, a digital and intelligent Luzhou Laojiao, and a harmoniousLuzhou Laojiao. Since the 14th Five-Year Plan period, the Company has firmly implemented the "136"development strategy, won key battles such as expanding production capacity, upgrading brands, andstrengthening teams, and has entered a stage of high-quality development. The National Cellar 1573brand achieved comprehensive coverage in the domestic market and was fully expanding in overseasmarkets; the Luzhou Laojiao brand built a strong basis in the granary market, and has gained a stableand penetrating presence in the opportunity market, with much good news of the revival of famousbaijiu; the breakthrough project of expanding key sales areas has been deeply promoted, marketconsumption has been further activated, and market share has been further increased. In terms ofdigital marketing and brand building, channel development and public relations empowerment, onlineexpansion and offline integration, and overseas layout and domestic boosting, a clearer and moreeffective path has been created with the characteristics of Luzhou Laojiao, which has madecontributions to the healthy and rapid development of the Company. During the 14th Five-Year Planperiod, the compound growth rate of the Company's net profit attributable to the parent companyreached 22.38%. In 2024, operating revenue amounted to CNY 31.196 billion, up 3.19% year on year;and the net profit attributable to the parent company reached CNY 13.472 billion, up 1.71% year onyear. Various performance indicators reached a new historical high. In the future, the Company willcontinue to steadfastly implement the principle of "growing as fast as possible on the basis of healthydevelopment", and resolutely "compete" for better performance while benchmarking againstoutstanding enterprises in the industry and main competitors, and move towards the established goalsprudently and meticulously.
B. Deeply promoting technological innovation and strengthening the transformation of scientificresearch achievementsIn recent years, the Company has attached great importance to the development mode of innovationleading progress, integrated innovation forces, gathered innovation resources, tackled the frontier andcommon key technologies of the baijiu industry, and promoted the transfer and transformation ofachievements and industry sharing, thus promoting the transformation of the baijiu industry fromexperience oriented to technological oriented. This has made important contributions to thetechnological innovation, transformation and upgrading of the baijiu industry in China. First, theCompany has successfully established multiple major national-level technological innovation platforms,including the National Engineering Research Centre of Solid-State Brewing, the National IndustrialDesign Centre, and the National Postdoctoral Workstation. The Company has formed a comprehensivetechnological innovation platform system with the National Engineering Research Centre of Solid-StateBrewing as the R&D core, covering basic R&D, talent cultivation, and engineering transformation inmultiple fields, and has built a highland for technological innovation in the entire industry. Second, theCompany has continuously increased investment in technological innovation, research anddevelopment, and continuously enhanced its independent innovation capabilities. In the past five years,the total R&D investment reached CNY 1,035.4329 million, and the compound annual growth rate ofinnovation R&D investment reached 26.40%. Third, the Company has actively carried out collaborativeinnovation between the Company, universities and research institutions, establishing cooperativerelationships with more than 30 universities and institutions such as Tsinghua University and Shanghai
Jiao Tong University. Through various forms including joint laboratory building, joint undertaking ofmajor projects, joint training of talents, and establishment of open projects, the Company has carriedout extensive technical exchange and cooperation, forming a good pattern of diversified cooperation,innovative development, and mutual benefit between universities and the Company. Fourth, theCompany has attached great importance to the creation and protection of intellectual property rights,and regarded intellectual property building as an important development strategy for the Company. Thenumber of applications and authorizations for invention and utility model patents has maintained a rapidgrowth. Up to now, the Company has been granted 583 patents, including 211 invention patents and372 utility models, both of which are at the forefront of the industry. In the future, the Company willcontinue to leverage its advantages in scientific research platforms, talent, and publicity tocomprehensively consolidate Luzhou Laojiao's leading position in scientific research.
C. Highly valuing standardized operations and improving corporate governance levelThe Company has continuously consolidated the foundation of corporate governance, improved thecorporate governance structure, actively studied laws and regulations and the latest regulatory policies,and standardized the Company's management system. The Company has also clearly defined theresponsibilities and authorities of the Board of Directors, the Board of Supervisors, general meetings ofshareholders and the management in decision-making, execution, and supervision, and regulated therights and obligations of the Company and shareholders. The Company has vigorously promoted thesystematization, standardization, and digitalization of corporate governance, synchronously enhancedthe information-based level in the Board of Directors, the Board of Supervisors and general meetings ofshareholders, and incorporated the building of the integrated securities business platform into the"digital and intelligent Luzhou Laojiao" system, to continuously improve the level of corporategovernance. In order to further improve the Company's risk management system and ensure that thedirectors, supervisors, and senior management of the Company fully perform their duties within theirscope of responsibilities, the Company has actively promoted the purchase of liability insurances fordirectors, supervisors, and senior management. Meanwhile, the Company has become the first listedcompany in the industry to sign a liability insurance agreement for directors, supervisors, and seniormanagement which has been approved by a general meeting of shareholders. In the future, theCompany will continue to promote information technology building to empower corporate governance,continuously improve operational efficiency and scientific decision-making level.
D. Fulfilling the information disclosure obligation compliantly and strictly guarding the defenseline of insider tradingThe Company takes standardized information disclosure as the bottom line, conducts informationdisclosure with high standards, and effectively respects and safeguards the legitimate rights andinterests of investors. First, the Company has established and improved a management systemcentered on major information internal reporting system, temporary and periodic report preparationprocedure, insider information management system, and other policy documents, and continuouslypromoted the standardized and procedural business work, to ensure accurate and rigorous informationdisclosure. Second, the Company has adhered to investor demand orientation, actively promotedvoluntary information disclosure, attached importance to the pertinence, readability, and effectivenessof disclosure content, and continuously improved the transparency of information disclosure of theCompany. The Company has been awarded the highest A grade in the information disclosure
assessment of listed companies on the Shenzhen Stock Exchange for several consecutive years. In thefuture, the Company will continuously improve the transparency of information disclosure andcontinuously display information on the Company's operations at multiple levels, angles, anddimensions.
E. Efficiently carrying out investor relations activities and conveying the Company's investmentvalueThe Company has actively adapted to the needs of investor research and carried out investorrelationship management through a combination of "inviting in" and "going out" models. It has activelycommunicated with investors on industry hot topics, the Company's business picture, and developmentstrategies through the Shenzhen Stock Exchange investor interaction platform, establishment ofinvestor hotlines, improvement of investor relationship websites, hosting online collective receptiondays, and on-site investor surveys. In doing so, the Company has conveyed its investment value andsafeguarded investors' right to know. At the same time, the Company has adhered to investor demandorientation. Based on the continuous growth of overseas shareholders in recent years, the Companyhas innovatively used overseas accounts such as Facebook, twitter, and IG to simultaneously publishthe Company's performance promotion, shortened the disclosure time interval between Chinese andEnglish versions, and conducted overseas roadshows, to ensure the timeliness of informationacquisition for overseas investors. Going forward, the Company will continue to build a two-waycommunication mechanism for a deep understanding and positive interaction with the capital market totransmit the Company's value. (The Company's investor relations website has been updated. Investorsare welcome to visit https://000568.iryi.com/).
F. Improving shareholder returns and safeguarding the legitimate rights and interests ofshareholdersThe Company adheres to the implementation of an active profit distribution policy, attaches importanceto reasonable returns to investors while considering the sustainable development of the Company, andmaintains the continuity and stability of profit distribution. The Company clearly stipulates in its Articlesof Association that the Company may distribute dividend in cash or stocks and the dividend should notbe less than 50% of the distributable profit realized for that year, and the profit to be distributed in cashshould not be less than 30% of the distributable profit realized for that year. By the end of 2024, theCompany has paid out a cumulative cash dividend amount of CNY 43.301 billion, with a dividendpayout ratio of 60.93%, ranking among the top among more than 5,000 listed companies in theShanghai and Shenzhen stock markets. This has allowed all shareholders to fully share the Company'sdevelopment achievements and effectively maintained the Company's good image in the capitalmarket. In order to further improve the profit distribution policy, establish a scientific, sustained andconsistent shareholder return mechanism and enhance investment value, the Company has formulatedthe 2024-2026 Shareholder Dividend Plan. The Company's annual cash dividends shall account for noless than 65%, 70% and 75% of the net profit attributable to shareholders of the listed company in2024, 2025 and 2026, respectively, and shall not be less than CNY 8.5 billion. In principle, cashdividends can be paid twice a year.
G. Encouraging the controlling shareholder to actively increase its shareholdings to maintainthe stability of the capital market
Based on its recognition of the Company's long-term value and its firm belief in the Company'sdevelopment prospects, the controlling shareholder of the Company, Luzhou Laojiao Group Co., Ltd.,increased its holdings in the Company by 1,140,200 shares in total through call auction trading duringthe period from December 15, 2023 to June 15, 2024, accounting for 0.08% of the total share capital ofthe Company, with a total amount of approximately CNY 200.9629 million. Additionally, Laojiao Groupplans to increase its shareholdings in the Company through call auction trading within six months fromMarch 14, 2025, using special loans and its own funds. The amount of increase will not be less thanCNY 150 million and not more than CNY 300 million.
Moving forward, the Company will focus on the development theme of “Building Momentum forBreakthroughs, Advancing Stable Growth through Intensive Cultivation; Seizing Opportunities to DriveDevelopment through Reform and Innovation”, actively take responsibility, keep diligent, and make solidprogress while striving for high-quality development. The Company will also firmly establish a sense ofreturn to shareholders, effectively implement the "dual enhancement of development quality andshareholder returns" action plan, significantly enhance investors' satisfaction, and actively contribute tostabilizing the capital market and investor confidence.
Section IV Corporate Governance
1. Basic situation of corporate governance
Since it was listed, in accordance with the Corporate Law, the Securities Law, The Listed CompanyGovernance Standards and other laws, administrative regulations and departmental rules andnormative documents, the Company has constantly perfected corporate governance structure,standardized its operation, established the rules and system on the basis of the Company's articles ofassociation whose main framework is the rules of procedure of the shareholders' general meeting,rules of procedure of the board of directors and rules of procedure of the board of supervisors, whichis formed the management system whose main structure is the shareholders meeting, board ofdirectors, board of supervisors and management. During the reporting period, the Company won anumber of honors and awards, including “The 26
th
Golden Bull Awards—Best Investment ValueAward”, “The 18th Top 100 Most Valuable Main Board Listed Companies”, and “Best Practice Casefor Listed Company Boards in 2024”.
Any incompliance with the applicable laws and administrative regulations, as well as regulationsrelated to the governance of listed companies issued by the CSRC? Yes ? NoThere is no incompliance with the applicable laws and administrative regulations, as well asregulations related to the governance of listed companies issued by the CSRC.
2. Independency of assets, personnel, finance, organizations andbusinesses which are separated from the controlling shareholder andthe actual controllerThe Company has an independent and complete production and operation system and independentdecision-making ability. There is no horizontal competition between the Company and the controllingshareholders and its subsidiaries. The Company has daily affiliated transactions with the controllingshareholders and its subsidiaries. Such daily affiliated transactions belong to the need of rationalallocation of resources and do not affect the independence of the Company. For affiliatedtransactions, the Company has strictly fulfilled the relevant decision-making procedures andinformation disclosure obligations, and implemented the system of Non-executive directors' priorexamination and avoidance system of related directors (shareholders).
2.1 In the aspect of assets
Asset integrity. There are clear ownership and independency of the Company's assets invested bycontrolling shareholders. The Company has an independent and complete production, supply, salessystem and auxiliary production system and supporting facilities. The industrial property rights,trademarks and non-patented technology and other intangible assets are owned by the Company.There is no situation that the controlling shareholders occupy and transfer the assets of the company.
2.2. In the aspect of business
Business apart. The Company is totally independent in the operation, production and sales of baijiuseries of “National Cellar 1573” and “Luzhou Laojiao” . It has the ability to operate independently inthe market. The board of directors and the management can independently make production andoperation decisions within the corresponding authority.
2.3 In the aspect of personnel
The Company has built independent labor management, personnel management and salarymanagement. The Company has established a relatively complete labor management system andpost responsibility system. Meanwhile, the Company's senior management personnel all receivesalary in the Company, but not at the controlling shareholders.
2.4 In the aspect of organization
Organization independence. The Company has independent production management organizationand system, independent office and production management place, and independent managementorganization, functional organization and branch.
2.5 In the aspect of finance
Financial independence. The Company has completed and independent financial department.Independent accounting system and financial management are established. The Company separatelysets bank accountants, conducts external settlement and pays taxes according to law.
3. Horizontal competition
?Applicable ? N/A
4. Annual meeting of shareholders and special meetings ofshareholders convened during the reporting period
4.1. Meetings of shareholders convened during the reporting period
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Resolutions |
| 2023 Annual General Meeting of Shareholders | General Meeting of Shareholders | 65.26% | June 27, 2024 | June 28, 2024 | Announcement on Resolutions of The 2023 Annual General Meeting of Shareholders Announcement No: 2024-36 (http://www.cninfo.com.cn/) |
4.2. Special meetings of shareholders convened at the request of preferredshareholders with resumed voting rights?Applicable ? N/A
5. Directors, supervisors, and senior management
5.1 General information
| Name | Gender | Age | Title | Incumbent/ Former | Period of service | Shares held by the beginning of the reporting period (share) | Shares increased during the reporting period (share) | Shares decreased during the reporting period (share) | Other increase/ decrease (share) | Shares held by the end of the reporting period (share) | Reason for share changes |
| Liu Miao | Male | 55 | Chairman of the board | Current | June 30, 2015 to June 27, 2027 | 288,087 | 288,087 | ||||
| Lin Feng | Male | 51 | Director, General manager | Current | June 30, 2015 to June 27, 2027 | 95,900 | 95,900 | ||||
| Zhang Suyi | Male | 53 | Director, Deputy general manager | Current | December 29, 2015 to June 27, 2027 | 76,700 | 76,700 | ||||
| Xiong Pingting | Female | 49 | Director, Deputy general manager | Current | June 29, 2021 to June 27, 2027 | 62,800 | 62,800 | ||||
| Chen You’an | Male | 67 | Non-executive director | Current | June 29, 2021 to June 27, 2027 | ||||||
| Lyu Xianpei | Male | 61 | Non-executive director | Current | June 29, 2021 to June 27, 2027 | ||||||
| Li Guowang | Male | 61 | Non-executive director | Current | June 29, 2022 to June 27, 2027 | ||||||
| Li Liangchen | Male | 50 | Non-executive director | Current | June 27, 2024 to June 27, 2027 | ||||||
| Qian Xu | Male | 61 | External director | Current | June 30, 2015 to June 27, 2027 | ||||||
| Ying Hanjie | Male | 55 | External director | Current | September 13, 2016 to June 27, 2027 | ||||||
| Xiong | Male | 48 | External | Current | June 27, 2024 to |
| Bo | director | June 27, 2027 | ||||||||||
| Yang Ping | Male | 48 | Chairman of the Board of Supervisors | Current | June 29, 2021 to June 27, 2027 | |||||||
| Li Guangjie | Male | 55 | Supervisor | Current | June 27, 2018 to June 27, 2027 | |||||||
| Li Lunyu | Female | 38 | Supervisor | Current | June 29, 2021 to June 27, 2027 | |||||||
| Zhou Lei | Female | 51 | Supervisor | Current | June 27, 2024 to June 27, 2027 | |||||||
| Zhang Li | Female | 50 | Supervisor | Current | June 27, 2024 to June 27, 2027 | |||||||
| Tang Dongliang | Male | 47 | Deputy general manager | Current | December 24, 2024 to June 27, 2027 | |||||||
| Shen Caihong | Male | 59 | Deputy general manager | Current | June 30 , 2002 to June 27 , 2027 | 180,481 | 180,481 | |||||
| Xie Hong | Female | 55 | CFO | Current | March 6, 2015 to June 27, 2027 | 76,700 | 76,700 | |||||
| He Cheng | Male | 58 | Deputy general manager | Current | June 30, 2015 to June 27, 2027 | 76,700 | 76,700 | |||||
| Li Yong | Male | 48 | Deputy general manager, Secretary of the board | Current | September 20, 2021 to June 27, 2027 | 62,800 | 62,800 | |||||
| Zhao Bingkun | Male | 45 | Deputy general manager | Current | August 2, 2024 to June 27, 2027 | 30,000 | 30,000 | |||||
| Wang Hongbo | Male | 61 | Director, Deputy general manager | Resignation | March 6, 2015 to February 2, 2024 | 76,700 | 76,700 | |||||
| Liu Junhai | Male | 55 | Non-executive director | Resignation | June 27, 2018 to June 27, 2024 | |||||||
| Gong Zhengying | Female | 55 | External director | Resignation | June 29, 2022 to June 27, 2024 | |||||||
| Ou Fei | Male | 39 | Supervisor | Resignation | June 29, 2022 to June 27, 2024 | |||||||
| Tang Shijun | Male | 48 | Supervisor | Resignation | June 29, 2022 to June 27, 2024 | |||||||
| Total | -- | -- | -- | -- | -- | -- | 1,026,868 | 0 | 0 | 0 | 1,026,868 | -- |
Whether any director, supervisor or senior management resigned before the expiry of their periods ofservice during the reporting period? Yes □ NoDuring the reporting period, Mr. Wang Hongbo resigned as he reached the statutory retirement age.
Changes in directors, supervisors, and senior management? Applicable □ N/A
| Name | Title | Type | Date | Reason |
| Tang Dongliang | Deputy general manager | Appointed | December 24, 2024 | Appointed |
| Zhao Bingkun | Deputy general manager | Appointed | August 02, 2024 | Appointed |
| Li Liangchen | Non-executive director | Elected | June 27, 2024 | Change of term |
| Xiong Bo | External director | Elected | June 27, 2024 | Change of term |
| Zhou Lei | Supervisor | Elected | June 27, 2024 | Change of term |
| Zhang Li | Supervisor | Elected | June 27, 2024 | Change of term |
| Wang Hongbo | Director, Deputy general manager | Resignation | February 02, 2024 | Retirement |
| Liu Junhai | Non-executive director | Resignation upon the expiry of period of service | June 27, 2024 | Change of term |
| Gong Zhengying | External director | Resignation upon the expiry of period of service | June 27, 2024 | Change of term |
| Ou Fei | Supervisor | Resignation upon the expiry of period of service | June 27, 2024 | Change of term |
| Tang Shijun | Supervisor | Resignation upon the expiry of period of service | June 27, 2024 | Change of term |
5.2 Employment information
Professional background, work experience and major duties of current directors, supervisors andsenior management.Mr. Liu Miao, male, born in 1969, MBA of Wright State University in the USA, Master of ChineseBrewing, professorate senior engineer, and senior marketing specialist. He used to serve as planningminister, general manager of Sales Company, general manager assistant, and deputy generalmanager of the Company. At present, he is secretary of the party committee and chairman of theboard in Laojiao Group, secretary of the party committee and chairman of the board in the Company,as well as chairman of the board in Luzhou Sanrenxuan Liquor Industry Co., Ltd.
Mr. Lin Feng, male, born in 1973, Master degree, professorate senior economist, senior marketingspecialist. He was deputy general manager and general manager of Sales Company, director ofmarketing, director of human resources, chief dispatcher, deputy general manager of the Company.At present, he is deputy secretary of the party committee, director, and general manager of theCompany.
Mr. Zhang Suyi, male, born in 1971, PhD, professorate senior engineer, representative inheritor ofSichuan Intangible Cultural Heritage. He was a worker, production team leader and assistant
superintendent at Brewing Workshop No. 6, vice director and director of Gouchu Center, and deputychief engineer of the Company, as well as deputy general manager, and director of the Baijiu BodyDesign Centre of Brewing Company. At present, he is director, deputy general manager, and directorof safety and environmental protection of the Company.
Ms. Xiong Pingting, female, born in 1975, holds a master's degree and the titles of ProfessorateHuman Resource Management Professional, and Political Mentor. Positions previously held by herinclude Deputy Director and Director of the Office of Luzhou Laojiao Sales Co., Ltd., Deputy Directorof the Office of Jiangyang District People's Government of Luzhou (temporary), Deputy Director of theHuman Resources Department and Corporate Management Department of Luzhou Laojiao Co., Ltd.,General Manager of the Brand Operation Department, Director of the Office (concurrently), Secretaryof the general Party branch, and Deputy General Manager of Luzhou Laojiao Sales Co., Ltd. Atpresent, she is member of the Party Committee, Director, Deputy General Manager, and Chairman ofthe Labor Union of the Company.
Mr. Chen You'an, male, born in 1958, holds an Eng.D. degree in management science andengineering and is a Senior Engineer. Currently, he is Independent Director of Nomura OrientInternational Securities Co., Ltd., Hexie Health Insurance Co., Ltd., CPIC Fund Management Co., Ltd.,and Tech-bank Food Co., Ltd. He has served as an non-executive director of the Company sinceJune 2021.
Mr. Lyu Xianpei, male, born in 1964, holds a Ph.D. degree in accounting. Positions previously held byhim include Vice Dean at the School of Accounting and Director at the Auditing Department ofSouthwestern University of Finance and Economics. Currently, he serves as Professor and DoctoralSupervisor at Southwestern University of Finance and Economics, Chairman of Sichuan Society ofEducation Audit, Director of Sichuan State-owned Assets Operation Puhui Financing Guarantee Co.,Ltd., as well as Independent Director of Sichuan Teway Food Group Co., Ltd., and North ChemicalIndustries Co., Ltd. He has served as a non-executive director of the Company since June 2021.
Mr. Li Guowang, male, born in 1963, holds a postgraduate degree and is a senior economist. Heonce served as the Deputy Director of the Information Center of the Ministry of Commerce, DeputyGeneral Manager of Futures Brokerage Co., Ltd. under China Banking and Insurance InformationTechnology Management Co., Ltd., General Manager of the Shanghai Securities BusinessDepartment of China Banking and Insurance Information Technology Management Co., Ltd., Directorof the Strategic Development Department of the R&D Center of China Galaxy Securities Co., Ltd.,General Manager of the R&D Center of Shanghai Securities Co., Ltd., Marketing Director of GalaxyAsset Management Co., Ltd., Director of the Research Institute of Hwa Bao Securities Co., Ltd., ChiefEconomist and Director of the Research Institute of Zhongshan Securities Co., Ltd., Chief Economistof Shanghai Dalu Futures Co., Ltd., and Deputy Director of the Green Finance Committee of theJiangsu Financial Association. Currently, he is a member of the Association of Zhejiang Talent inShanghai. He has served as a non-executive director of the Company since June 2022.
Mr. Li Liangchen, male, born in 1974, MBA. He used to be senior partner of Shanghai AllBright
(Hangzhou) Law Offices and lawyer of Beijing Tianyuan (Hangzhou) Law Firm. At present, he ispartner of Beijing Zhong Lun (Hangzhou) Law Firm, as well as non-executive director of Gree RealEstate Co., Ltd., Sijin Intelligent Forming Machinery Co., Ltd., Ningbo FLK Technology Co., Ltd. (non-listed), and Anhui Yingfa Ruineng Technology Co., Ltd. (non-listed). He has served as a non-executive director of the Company since June 2024.
Mr. Qian Xu, Male, born in 1963, PhD. He was general manager and chairman of the board of BeijingEnterprises Real-Estate Group Co., Ltd., chairman of the board and general manager of BeijingEnterprises Urban Development Group Co., Ltd., chairman of the board of Beijing Properties(Holdings) Limited (listed on the Hong Kong Stock Exchange), and non-executive director of CAQHoldings Limited (listed on the Australian Stock Exchange). He has served as a director of theCompany since June 2015.
Mr. Ying Hanjie, Male, born in 1969, Doctor of Biochemistry, professor, and academician of theChinese Academy of Engineering. He was deputy director of Pharmacy and Life Sciences School ofNanjing University of Technology, and chairman of the board of Nanjing Biotogether Co., Ltd. Atpresent, he is president of Soochow University, director of National Biochemical EngineeringTechnology Research Center of Nanjing Tech University, director of Nanjing High Tech UniversityBiological Technology Research Institute Co., Ltd., and director of Jiangsu Institute of IndustrialBiotechnology. He has served as a director of the Company since September 2016.
Mr. Xiong Bo, male, born in 1976, Master of Public Administration. He used to be deputy chief andchief of the Policy, Regulations and Talent Planning and Development Department of LuzhouMunicipal Human Resources Bureau, deputy chief of Secretary Department I of Luzhou MunicipalGovernment Office, deputy director of office and chief of the Procurement Department of LuzhouMunicipal Finance Bureau, director of Luzhou Financial Supervision and Inspection Bureau, as wellas member of the party committee and deputy director of the State-owned Assets Supervision andAdministration Commission of Luzhou. At present, he is party secretary and chairman of the board ofLuzhou State Owned Capital Operation Management Co., Ltd., as well as full-time external director ofLaojiao Group, XingLu Group, Luzhou Industrial Development Investment Group Co., Ltd., andLuzhou Development Holding Group Co., Ltd. He has served as a director of the Company sinceJune 2024.
Mr. Yang Ping, male, born in 1976, professorate senior engineer, holds a doctoral degree. Positionspreviously held by him include deputy director and director at the National Cellar Workshop Section,director at the Production and Technology Department, and deputy general manager of LuzhouLaojiao Brewing Co., Ltd. Currently, he is chairman of the Board of Supervisors and member of theDiscipline Inspection Committee of the Company, as well as secretary of the Party Committee andgeneral manager of Luzhou Laojiao Brewing Co., Ltd.
Mr. Li Guangjie, male, born in 1969, Master degree, economist. He was manager of PlanningDepartment of the Company, deputy director of Sales Company, manager of Import and Exportcompany, general manager assistant and deputy general manager of Sales Company. At present, he
is supervisor and management consultant of Sales Company.
Ms. Li Lunyu, female, born in 1986, holds a university degree as well as is Assistant Political Mentorand Assistant Engineer. Positions previously held by her include Publicity Officer at the Office of theCPC Luzhou Laojiao Committee, Deputy Head and Manager of Tianjin Division of the BusinessDepartment for Luzhou Laojiao Tequ 60 and 80, Secretary of the CPC National Cellar Section Branchof Luzhou Laojiao Brewing Co., Ltd., Director of the Office of the CPC Luzhou Laojiao BrewingCommittee, and Director of the Discipline Inspection Department and Vice Chairman of the LaborUnion of Luzhou Laojiao Brewing Co., Ltd. Currently, she is Supervisor, Vice Chairman of the LaborUnion, and Director of the Office of the Labor Union of the Company.
Ms. Zhou Lei, female, born in 1973, Master degree, accountant. She used to work in the FinancialDepartment of the Company, and in the Investment and Financing Department of Luzhou LaojiaoZhitong Trading Co., Ltd. At present, she is supervisor and head of finance of the FinancialManagement and Operation Center of the Company.
Ms. Zhang Li, female, born in 1975, Bachelor’s degree, senior accountant. She used to work in TheFirst Construction Department of China Railway Construction 15
th
Bureau, the Chengdu branch ofChina Railway Construction 15
th Bureau, China Railway Construction 15
thBureau Group ChengduConstruction Co., Ltd. and the Financial Department of the Company. At present, she is supervisorand comprehensive auditor of the Audit Office of the Company.
Mr. Tang Dongliang, male, born in 1977, holds a postgraduate degree. He used to be the deputy headof the People’s Government of Longmatan District, Luzhou City, a member of the standing committeeand the deputy head of the government of Jiangyang District, Luzhou City, and the deputy secretaryof the committee and the head of the government of Jiangyang District, Luzhou City. He is now adeputy general manager of the Company.
Mr. Shen Caihong, Male, born in 1966, Master degree, professor-level senior engineer, one of thefirst batch of representative inheritors of national intangible cultural heritage, one of the first batch of“Master of Chinese Brewing”, and one of the first batch of "Sichuan craftsmen". He was manager ofthe Company’s leaven-making branch, manager of base baijiu company, general manager assistantand director of production department. At present, he is deputy general manager, chief engineer,director of national solid brewing engineering technology research center and chairman of the boardof Luzhou Pinchuang Technology Co., Ltd.
Ms. Xie Hong, female, born in 1969, Master degree, senior accountant, and professorate senioreconomist. She was section chief of Treasury Section of the Finance Bureau, section chief of Non-taxRevenue Collection Management Section, director of Luzhou Municipal Finance Treasury PaymentCenter, chief accountant of Luzhou Finance Bureau. At present, she is a member of the partycommittee and CFO of the Company.
Mr. He Cheng, male, born in 1966, Master of Management Economics of Nanyang Technological
University, senior engineer, expert who receives special allowances from the State Council, Master ofChinese Baijiu, and Master of Chinese Brewing. He was chief dispatcher of the Company, generalmanager of Brewing Company, as well as director of the business administration department, directorof the human resources department, director of the quality department, and director of the dispatchingcenter of the Company. At present, he is a member of the party committee, deputy general manager,chief quality officer and director of food safety of the Company.
Mr. Li Yong, male, born in 1977, holds a postgraduate degree and is a brewing engineer. He onceworked in the education sector at the Party and government organizations at the township level aswell as departments at the county and municipal levels. Also, he used to be Director of the GroupOffice of Luzhou Laojiao Group, Director of the General Manager’s Office of the Company, as well asDeputy Secretary of the Party Committee, Secretary of the Discipline Inspection Committee, andDeputy General Manager of Sales Company. Currently, he is Deputy General Manager, Secretary ofthe Board, and member of the Discipline Inspection Committee of the Company, as well as Chairmanof the Board of Luzhou Laojiao Technology Innovation Co., Ltd.
Mr. Zhao Bingkun, male, born in 1979, holds a university degree and is Senior Engineer. He used tobe head of office and deputy general manager of Brewing Company, deputy head (temporary) of thePeople's Government of Longmatan District, Luzhou City, and general manager of the PackagingMaterials Sourcing Centre of the Company. At present, he is deputy general manager of the Company.
Position in shareholder-holding companies? Applicable ? N/A
| Name | Name of shareholder-holding companies | Position in shareholder-holding companies | Beginning date of term | Ending date of term | Any remunerations received from shareholder-holding companies |
| Liu Miao | Laojiao Group | Secretary of the party committee, Chairman of the board | 11 March 2022 | No | |
| Xiong Bo | Laojiao Group | Full-time external director | July 5, 2023 | No | |
| Xiong Bo | XingLu Group | Full-time external director | July 5, 2023 | No |
Position in other companies? Applicable ? N/A
| Name | Name of other companies | Position in other companies | Beginning date of term | Ending date of term | Any remunerations received from other companies |
| Chen You’an | Nomura Oriental International Securities Co., | Non-executive director |
| Ltd., Hexie Health Insurance Co., Ltd., CPIC Fund Management Co., Ltd., and Tech-bank Food Co., Ltd. | |||||
| Lyu Xianpei | Sichuan Society of Education Audit | Chairman | |||
| Lyu Xianpei | Sichuan State-owned Assets Operation Puhui Financing Guarantee Co., Ltd. | Director | |||
| Lyu Xianpei | Sichuan Teway Food Group Co., Ltd., and North Chemical Industries Co., Ltd. | Non-executive director | |||
| Li Guowang | Association of Zhejiang Talent in Shanghai | Director | |||
| Li Liangchen | Gree Real Estate Co., Ltd., Sijin Intelligent Forming Machinery Co., Ltd., Ningbo FLK Technology Co., Ltd. (non-listed), and Anhui Yingfa Ruineng Technology Co., Ltd. (non-listed) | Non-executive director | |||
| Ying Hanjie | Soochow University | President | |||
| Ying Hanjie | National Biochemical Engineering Technology Research Center of Nanjing University of Technology | Director | |||
| Ying Hanjie | Nanjing High Tech University Biological Technology Research Institute Co., Ltd., and Jiangsu Institute of Industrial | Director |
| Biotechnology | |||||
| Xiong Bo | Luzhou State Owned Capital Operation Management Co., Ltd. | Party secretary, chairman of the board | |||
| Xiong Bo | Luzhou Industrial Development Investment Group Co., Ltd., and Luzhou Development Holding Group Co., Ltd. | Director |
Punishments imposed in the recent three years by the securities regulators on the incumbentdirectors, supervisors and senior management as well as those who left in the reporting period? Applicable ? N/A
5.3 Remuneration of directors, supervisors and senior management
The following describes the decision-making procedures, grounds on which decisions are made andactual remuneration payment of directors, supervisors and senior management.
Decision-making procedures for directors, supervisors and senior management: The remuneration ofnon-executive directors, external directors and external supervisors shall be determined by thegeneral meeting of shareholders, and the remuneration of directors, supervisors and seniormanagement who hold positions within the Company shall be determined by relevant rules of SASACof Luzhou and relevant rules of the Company.
Grounds on which decisions are made of directors, supervisors and senior management: Calculateaccording to the appraisal methods formulated at the beginning of the year.
Actual remuneration payment of directors, supervisors and senior management: Details refer to“Remuneration of directors, supervisors and senior management during the reporting period”.
Remuneration of directors, supervisors and senior management during the reporting period
Unit: CNY 10,000
| Name | Gender | Age | Title | Incumbent/ Former | Total before-tax remuneration from the Company | Remuneration from related parties of the Company |
| Liu Miao | Male | 55 | Chairman of the board | Current | 136.91 | No |
| Lin Feng | Male | 51 | Director, | Current | 135.2 | No |
| General manager | ||||||
| Zhang Suyi | Male | 53 | Director, Deputy general manager | Current | 108.13 | No |
| Xiong Pingting | Female | 49 | Director, Deputy general manager | Current | 107.25 | No |
| Chen You’an | Male | 67 | Non-executive director | Current | 9.52 | No |
| Lyu Xianpei | Male | 61 | Non-executive director | Current | 9.52 | No |
| Li Guowang | Male | 61 | Non-executive director | Current | 9.52 | No |
| Li Liangchen | Male | 50 | Non-executive director | Current | 4.76 | No |
| Qian Xu | Male | 61 | External director | Current | 9.52 | No |
| Ying Hanjie | Male | 55 | External director | Current | 9.52 | No |
| Xiong Bo | Male | 48 | External director | Current | 0 | Yes |
| Yang Ping | Male | 48 | Chairman of the Board of Supervisors | Current | 108.49 | No |
| Li Guangjie | Male | 55 | Supervisor | Current | 106.43 | No |
| Li Lunyu | Female | 38 | Supervisor | Current | 67.26 | No |
| Zhou Lei | Female | 51 | Supervisor | Current | 26.47 | No |
| Zhang Li | Female | 50 | Supervisor | Current | 22.93 | No |
| Tang Dongliang | Male | 47 | Deputy general manager | Current | 5.2 | No |
| Shen Caihong | Male | 59 | Deputy general manager | Current | 108.82 | No |
| Xie Hong | Female | 55 | CFO | Current | 109.3 | No |
| He Cheng | Male | 58 | Deputy general manager | Current | 108.07 | No |
| Li Yong | Male | 48 | Deputy general manager, Secretary of the board | Current | 107.05 | No |
| Zhao Bingkun | Male | 45 | Deputy general manager | Current | 25 | No |
| Wang Hongbo | Male | 61 | Director, Deputy general manager | Resignation | 5.33 | No |
| Liu Junhai | Male | 55 | Non-executive director | Resignation | 4.76 | No |
| Gong Zhengying | Female | 55 | External director | Resignation | 0 | Yes |
| Ou Fei | Male | 39 | Supervisor | Resignation | 0 | Yes |
| Tang Shijun | Male | 48 | Supervisor | Resignation | 0 | Yes |
| Total | -- | -- | -- | -- | 1,344.96 | -- |
Other information? Applicable ? N/A
6. Performance of directors during the reporting period
6.1. Board meetings convened during the reporting period
| Meeting | Convened date | Disclosure date | Resolutions |
| The 38th Meeting of the 10th Board of Directors | January 23, 2024 | January 24, 2024 | Announcement on Resolutions of the 38th Meeting of the 10th Board of Directors (Announcement No. 2024-1) (http://www.cninfo.com.cn/) |
| The 39th Meeting of the 10th Board of Directors | April 25, 2024 | April 27, 2024 | Announcement on Resolutions of the 39th Meeting of the 10th Board of Directors (Announcement No. 2024-15) (http://www.cninfo.com.cn/) |
| The 40th Meeting of the 10th Board of Directors | June 04, 2024 | June 05, 2024 | Announcement on Resolutions of the 40th Meeting of the 10th Board of Directors (Announcement No. 2024-23) (http://www.cninfo.com.cn/) |
| The First Meeting of the 11th Board of Directors | June 27, 2024 | June 28, 2024 | Announcement on Resolutions of the First Meeting of the 11th Board of Directors (Announcement No. 2024-37) (http://www.cninfo.com.cn/) |
| The Second Meeting of the 11th Board of Directors | August 02, 2024 | August 03, 2024 | Announcement on Resolutions of the Second Meeting of the 11th Board of Directors (Announcement No. 2024-40) (http://www.cninfo.com.cn/) |
| The Third Meeting of the 11th Board of Directors | August 29, 2024 | August 31, 2024 | Announcement on Resolutions of the Third Meeting of the 11th Board of Directors (Announcement No. 2024-44) (http://www.cninfo.com.cn/) |
| The Fourth Meeting of the 11th Board of Directors | September 23, 2024 | September 24, 2024 | Announcement on Resolutions of the Fourth Meeting of the 11th Board of Directors (Announcement No. 2024-48) (http://www.cninfo.com.cn/) |
| The Fifth Meeting of the 11th Board of Directors | October 30, 2024 | October 31, 2024 | Announcement on Resolutions of the Fifth Meeting of the 11th Board of Directors (Announcement No. 2024-57) (http://www.cninfo.com.cn/) |
| The Sixth Meeting of the 11th Board of Directors | December 24, 2024 | December 25, 2024 | Announcement on Resolutions of the Sixth Meeting of the 11th Board of Directors (Announcement No. 2024-60) (http://www.cninfo.com.cn/) |
6.2. Attendance of directors in board meeting and general meeting of shareholders
| Attendance of director in board meeting and general meeting of shareholders | |||||||
| Director | Attendance due in the reporting period (times) | Attendance on site (times) | Attendance by telecommunication (times) | Attendance through a proxy (times) | Absence (times) | Absence for two consecutive times | Attendance at general meeting of shareholders (times) |
| Liu Miao | 9 | 2 | 5 | 2 | 0 | No | 1 |
| Lin Feng | 9 | 4 | 5 | 0 | 0 | No | 1 |
| Zhang Suyi | 6 | 2 | 4 | 0 | 0 | No | 1 |
| Xiong Pingting | 9 | 3 | 5 | 1 | 0 | No | 1 |
| Chen You’an | 9 | 4 | 5 | 0 | 0 | No | 1 |
| Lyu Xianpei | 9 | 4 | 5 | 0 | 0 | No | 1 |
| Li Guowang | 9 | 4 | 5 | 0 | 0 | No | 1 |
| Li Liangchen | 6 | 2 | 4 | 0 | 0 | No | 1 |
| Qian Xu | 9 | 4 | 5 | 0 | 0 | No | 1 |
| Ying Hanjie | 9 | 3 | 5 | 1 | 0 | No | 0 |
| Xiong Bo | 6 | 2 | 4 | 0 | 0 | No | 1 |
| Wang Hongbo | 3 | 2 | 1 | 0 | 0 | No | 0 |
| Liu Junhai | 3 | 2 | 1 | 0 | 0 | No | 0 |
| Gong Zhengying | 3 | 2 | 1 | 0 | 0 | No | 0 |
Notes to absence for two consecutive times
6.3. Objections from directors in related issues of the CompanyWere there any objections on related issues of the Company from director? Yes ? NoDirectors have no objection on related issues of the Company during the reporting period.
6.4. Other details about the performance of duties by directors
Was there any advice from directors adopted by the Company?? Yes ? NoExplanation about advice of directors is adopted or not adopted by the Company or notThe Company adopted the advice of non-executive directors in respect of safe production, systemimprovement, and internal control construction.
7. Activities of special committees under the Board of Directors duringthe reporting period
| Committee | Members | Number of meetings convened | Convened date | Topics | Substantial opinion and recommendations | Other information | Details of objections (if any) |
| The Strategy Committee | Liu Miao, Lin Feng, and Zhang Suyi | 3 | May 27, 2024 | Review of the following proposal: The Proposal on the De-registration of Luzhou Laojiao Whitail Liquor Industry Co., Ltd. | Approved, to be submitted to the Board of Directors for further review | ||
| July 29, 2024 | Review of the following proposal: The Proposal on the Investment and Wealth Management with Own Funds | Approved, to be submitted to the Board of Directors for further review | |||||
| December 05, 2024 | Review of the following proposal: The Proposal on Joint Stock Subsidiary Reducing the Registered Capital | Approved, to be submitted to the Board of Directors for further review | |||||
| The Nomination Committee | Li Liangchen, Lyu Xianpei, and Xiong Pingting (Liu Junhai resigned as a member of the Nomination Committee on June 27, 2024) | 4 | May 31, 2024 | Review of the following proposal: The Proposal on Reviewing the Qualifications of Non-employee Director Candidates for the 11th Board of Directors | Approved, to be submitted to the Board of Directors for further review | ||
| June 18, 2024 | Review of the following proposal: The Proposal on Formulating the Work Plan for the Appointment of Deputy General Manager of Luzhou Laojiao Co., Ltd. | Approved, to be submitted to the Board of Directors for further review | |||||
| July 29, 2024 | Review of the following proposal: The Proposal on | Approved, to be submitted to the Board of Directors for further review |
| Nominating Candidates for Senior Management | |||||||
| December 20, 2024 | Review of the following proposal: The Proposal on Recommending Candidates for Senior Management | Approved, to be submitted to the Board of Directors for further review | |||||
| The Audit Committee | Lyu Xianpei, Chen You’an and Qian Xu | 5 | April 15, 2024 | Review of the following proposals: 1. The 2023 Annual Financial Report; 2. The 2023 Internal Control Self-assessment Report; 3. The Summary Report of the Audit Committee of the Board of Directors on the 2023 Annual Audit; 4. The Report on the Assessment and Performance of Supervisory Responsibilities of the Audit Committee of the Board of Directors on the Performance of the Accounting Firm in 2023; 5. The Work Plan for the 2024 Internal Audit; and 6. The Q1 2024 Report | Approved, to be submitted to the Board of Directors for further review | ||
| April 19, 2024 | Review of the following proposals: 1. The Proposal on the Formulation of the Rules of Luzhou Laojiao Co., Ltd. for the Appointment of Accounting Firm; and 2. The Proposal on Starting the | Approved, to be submitted to the Board of Directors for further review |
| Appointment of Accounting Firm | |||||||
| May 27, 2024 | Review of the following proposal: The Proposal on Chaging the Accounting Firm | Approved, to be submitted to the Board of Directors for further review | |||||
| August 16, 2024 | Review of the following proposals: 1. The Proposal on the 2024 Interim Financial Report; and 2. The 2024 Interim Audit Work Report | Approved, to be submitted to the Board of Directors for further review | |||||
| October 23, 2024 | Review of the following proposals: 1. The Audit Work Report for Q1-Q3 2024; and 2. The Q3 2024 Report | Approved, to be submitted to the Board of Directors for further review | |||||
| The Remuneration and Appraisal Committee | Chen You’an, Li Guowang, and Ying Hanjie | 5 | January 19, 2024 | Review of the following proposal: The Proposal on the Satisfaction of Unlocking Conditions for the First Unlocking Period of the 2021 Restricted Share Incentive Plan | Approved, to be submitted to the Board of Directors for further review | ||
| May 28, 2024 | Review of the following proposal: The Proposal on Amending the Appraisal and Management Measures for Remunerations of the Management of Luzhou Laojiao Co., Ltd. | Approved, to be submitted to the Board of Directors for further review | |||||
| July 22, 2024 | Review of the following proposals: 1. The Proposal on Revising the Management Rules of Luzhou Laojiao Co., Ltd. for | Approved, to be submitted to the Board of Directors for further review |
| Remunerations of the Management and the Management Rules of Luzhou Laojiao Co., Ltd. for Performance Appraisal of the Management; and 2. The Proposal on Reviewing the 2023-2025 Appraisal Implementation Plan of Luzhou Laojiao Co., Ltd. for the Management | ||||
| September 18, 2024 | Review of the following proposal: The Proposal on the Satisfaction of Unlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan | Approved, to be submitted to the Board of Directors for further review | ||
| December 20, 2024 | Review of the following proposal: The Proposal on the Remunerations of the Management for 2023 | Approved, to be submitted to the Board of Directors for further review |
8. Performance of duties by the board of supervisorsWere there any risks to the Company identified by the board of supervisors when performing its dutiesduring the reporting period? Yes ? NoThe board of supervisors has no objection during the reporting period.
9. Staff in the Company
9.1. Number, functions and educational backgrounds of the staff
| Number of in-service staff of the parent company at the end of the reporting period | 1,292 |
| Number of in-service staff of main subsidiaries at the end of the reporting period | 2,540 |
| Total number of in-service staff at the end of the reporting period | 3,832 |
| Total number of staff with remuneration in the period | 3,832 |
| Number of retirees to whom the Company or its main subsidiaries need to pay retirement pension | 895 |
| Functions | |
| Function by category | Number of staff |
| Production staff | 1,358 |
| Sales staff | 927 |
| R&D staff | 853 |
| Financial staff | 104 |
| Administrative staff | 590 |
| Total | 3,832 |
| Educational backgrounds | |
| Educational background by category | Number of staff |
| Senior high school and below | 417 |
| Junior college | 765 |
| Bachelor | 2,031 |
| Master | 603 |
| Doctor | 16 |
| Total | 3,832 |
9.2. Staff remuneration policy
In 2024, the Company implemented the distribution policy of "sharing benefits, paying for losses,classification and setting, and long-term policy effects", continuously strengthened the digitalassessment, linked individual performance with organizational performance, and highlighted thedistribution according to performance. The Company implemented the post rating wage system andstrengthened the performance management of all employees. According to the following principles:
Link individual performance with organizational performance: The increase of wages is linked to theincrease of the Company's operating performance and profit growth; Under the same caliber, theproportion of increase in salaries shall not exceed the proportion of increase in performance and profitgrowth.
Salary and its changes based on position, ability and performance: The salary of employee shall bedetermined by position and the depth of their expertise. The salary shall be adjusted accordingly
when the position, ability and performance change.
Performance orientation, bonus and forfeit: Performance assessment is conducted according to theactual contributions of employees, and the salary distribution is inclined to the employees withexcellent performance.
The principle of equal wage negotiation: Abide by the principles that both sides of labor and capitalagrees in collective negotiation, so as to realize the unity of benefit and fairness.
9.3. Staff training plans
In 2024, the Company continued to promote the improvement of talent capabilities and qualities,optimize the targeted talent development program according to the career development stages ofemployees, and achieve precise talent development in different levels and grades. At the same time,targeted at different professional lines, the Company horizontally designed "Elite Program" training,and strove to create a large number of elite employees who would be rooted in various fields.
Sail Program: The "Sail Program" training was conducted for new employees hired through campusand social recruitment. The implemented training involved four stages: general ability training,marketing practical training, business capability enhancement training, and career planning. Thepurpose of this program is to enhance new employees' understanding and recognition of theCompany's core values, and familiarize them with the Company's production and operation so thatthey can settle in well.
Dive Program: The “Dive Program” is designed for general employees. With the focus on introductorycourses such as corporate culture and what employees should know and be able to do, office skills,professional ethics, etc., the purpose of this program is to strengthen what employees should knowand be able to do, enhance the accumulation of professional knowledge, improve employees’competence, and improve work performance.
Speed Navigation Program: This program is aimed at grassroots backbones, focusing on improvingwork efficiency, solving complex problems, communication reporting and horizontal collaboration, etc.The purpose of this program is to consolidate professional knowledge and skills, expand generalqualities and capabilities, enhance professional problem-solving capabilities, improve employees’competence, and improve work performance.
Voyage Program: The “Voyage Program” training was conducted for key personnel with a systematicdesign of three-year development plans and a focus on three themes, including “self-management”,“work management” and “interpersonal management”. The purpose was to enrich employees’knowledge on corporate business management, improve their knowledge structure, and enhancetheir strategic understanding and abilities of work and team management.
Steering Program: The “Steering Program” training was conducted for middle management personneland department experts in the form of online and offline trainings combined, as well as “coming in”and “going out” combined. Through the learning of advanced management concepts and practices,the training aimed to drive employees to broaden their mind, expand their vision, strengthen theirleadership skills and enhance their level of corporate management.
Elite Program: Targeting employees from different professional lines of the Company, the Companyfocused on training programs for digital, human resources, public relations, and other professionallines. Model learning, external training, and introduction of teaching staff were employed to improvethe professional level of employees.
In addition, in terms of technical talent training, in combination with the relevant provincial andmunicipal policies and the Company’s strategic needs of talent development, the Companystrengthens study on skilled worker development policies, fully promotes the “New Eight Grades ofEmployees”, and actively carries out the work of staff title appraisal, skill rating, recommendation andassessment and so on. Meanwhile, it continues to deepen the "Laojiao Skilled Worker Action", aspecial task for reforming the building of the industrial workforce, and strengthen the training,appraisal and incentives for industrial workers.
9.4. Labor outsourcing
? Applicable ? N/A
10. Profit distribution and converting capital reserves into share capitalFormulation, execution or adjustments of profit distribution policy, especially cash dividend policy, inthe reporting period.? Applicable ? N/A
According to the plan for profit distribution for 2023 deliberated and approved by 2023 annual meetingof shareholders, based on its total of 1,471,966,503 shares, the Company distributed a cash dividendof CNY 54.000780 (tax inclusive) per 10 shares to all shareholders. The distribution plan wasimplemented on August 23, 2024.
| A special statement of the policy of cash dividends | |
| Whether it meets the requirements of the articles of corporation or the resolution of shareholders' meeting: | Yes |
| Whether the standard and proportion of dividends are clear: | Yes |
| Whether the relevant decision-making process and systems are complete: | Yes |
| Whether non-executive directors perform their duties and play their due role: | Yes |
| If the Company has no dividend plan, it should disclose the specific reasons and the next steps it intends to take to enhance investor returns | N/A |
| Whether the minority shareholders have the opportunity to fully express their opinions and appeals and whether their legitimate rights and interests have been adequately protected: | Yes |
| Whether the conditions and procedures are compliant and transparent and whether the cash dividend policy is adjusted or changed: | N/A |
The Company made a profit in the reporting period and the profit distributable to shareholders of theCompany was positive, but it did not put forward a preliminary plan for cash dividend distribution toshareholders.? Applicable ? N/A
Preliminary plan for profit distribution and converting capital reserves into share capital for thereporting period? Applicable ? N/A
| Bonus shares for every 10 shares (share) | 0 |
| Dividends for every 10 shares (CNY) (tax included) | 45.92 |
| Total shares as the basis for the preliminary plan for profit distribution (share) | 1,471,951,503 |
| Total cash dividends (CNY) (tax included) | 6,759,201,301.78 |
| Cash dividends in other forms (e.g. repurchase share) | 0.00 |
| Total cash dividends (CNY) (including other forms) | 6,759,201,301.78 |
| Distributable profit (CNY) | 31,526,616,851.39 |
| Percentage of cash dividends in the total distributed profit (including other forms) | 100% |
| Information of the cash dividends | |
| The development stage of the Company is mature and the Company has no major fund expenditure arrangement. When the profit distribution is carried out, the proportion of cash dividends in this profit distribution should at least reach 80%. | |
| Details of preliminary plan for profit distribution and converting capital reserves into share capital | |
| On January 24, 2025, the Company carried out the 2024 interim dividend payout of CNY 13.58 (tax inclusive) for every 10 existing shares held, totaling CNY 1,998,910,141.07 (tax inclusive). If the said profit distribution plan is approved at a general meeting of shareholders, the total cash dividend payout for 2024 would be CNY 8,758,111,442.85 (tax inclusive), accounting for approximately 65.00% of the net profits attributable to shareholders of the Company in 2024. | |
11. Implementation of any equity incentive plan, employee stockownership plan or other incentive measures for employees? Applicable ? N/A
11.1. Equity incentives
A. On September 26, 2021, relevant proposals such as the Proposal on the 2021 Restricted ShareIncentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were approved at the Seventh Meetingof the 10th Board of Directors and the Third Meeting of the 10th Board of Supervisors of the Company,respectively.
B. On December 2, 2021, the Company received the Approval of Luzhou State-owned AssetsSupervision and Administration Commission on the Implementation of the Second Phase of the EquityIncentive Plan for Listed Companies by Luzhou Laojiao Co., Ltd. (L.G.Z.K.P. [2021] No. 62) from theLuzhou State-owned Assets Supervision and Administration Commission, which approved in principleto the implementation of the Restricted Share Incentive Plan by the Company.
C. On December 24, 2021, the Board of Supervisors of the Company issued the review opinion, i.e.,Explanation on the Review and Announcement of the List of Awardees of the 2021 Restricted ShareIncentive Plan.
D. On December 29, 2021, the relevant proposals such as the Proposal on the 2021 Restricted ShareIncentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were approved at the FirstExtraordinary General Meeting of Shareholders of 2021. Meanwhile, a self-inspection on the trading ofthe Company's shares by insiders of the Incentive Plan and the proposed awardees was conducted,and the Self-Inspection Report on the Trading of the Company's Shares by Insiders and Awardees inthe 2021 Restricted Share Incentive Plan was disclosed.
E. On December 29, 2021, the Company held the 12th Meeting of the 10th Board of Directors and theSixth Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grantof Restricted Shares to Awardees respectively. The independent directors consented to the relevantmatters.
F. On February 21, 2022, the Company disclosed the Announcement on the Completion of Registrationof Restricted Share Grant, completed the registration of the first grant of restricted shares. Upon theregistration of the grant, 6,862,600 restricted shares were granted to 437 objects, the grant price wasCNY 92.71 per share and the listing date was February 22, 2022.
G. On July 25, 2022, the Company held the 18th Meeting of the 10th Board of Directors and the NinthMeeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant ofReserved Restricted Shares to Awardees respectively. The independent directors consented to thismatter.
H. On August 5, 2022, the Board of Supervisors of the Company issued the review opinion, i.e.,Explanation on the Review and Announcement of the List of Awardees for the Reserved RestrictedShares of the 2021 Restricted Share Incentive Plan.
I. On September 2, 2022, the Company held the 22nd Meeting of the 10th Board of Directors and the13th Meeting of the 10th Board of Supervisors, at which the Proposal on the Repurchase andRetirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal onthe Adjustment of the Granted Price of Reserved Restricted Shares of 2021 Restricted Share IncentivePlan were reviewed and approved respectively. In accordance with the relevant provisions of theincentive plan of the Company and the authorization of the First Extraordinary General Meeting ofShareholders of 2021, the Board of Directors of the Company agreed to adjust the grant price andrepurchase price of the reserved restricted shares under the incentive plan from CNY 92.71 per shareto CNY 89.466 per share in view of the implementation of the Company's profit distribution plan for2021. The independent directors consented to this matter.
J. On September 3, 2022, the Company disclosed the Announcement on the Repurchase andRetirement of Certain Restricted Shares to Reduce Registered Capital and Notice to Creditors. By theexpiration of the declaring period, the Company had not received any declaration from the relevantcreditors for early payout of debts or provision of guarantee.
K. On September 26, 2022, the Company disclosed the Announcement on the Completion of theRegistration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share IncentivePlan. Upon the registration of the grant of the reserved restricted shares, 342,334 restricted shareswere granted to 46 objects, the grant price was CNY 89.466 per share and the listing date wasSeptember 28, 2022.
L. On November 29, 2022, the Company disclosed the Announcement on the Completion of theRepurchase and Retirement of Certain Restricted Shares. The Company proposed to repurchase andcancel a total of 62,310 restricted shares granted but not lifted from restricted sales. As at November 29,2022, the Company completed the aforesaid repurchase and retirement of restricted shares.
M. On December 29, 2022, the Company held the 26th Meeting of the 10th Board of Directors and the15th Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant ofReserved Restricted Shares to Awardees respectively. The independent directors consented to thismatter.
N. On January 13, 2023, the Board of Supervisors of the Company issued the review opinion, i.e.,Explanation on the Review and Announcement of the List of Awardees for the Reserved RestrictedShares of the 2021 Restricted Share Incentive Plan.
O. On February 16, 2023, the Company disclosed the Announcement on the Completion of theRegistration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share IncentivePlan. Upon the registration of the grant of the reserved restricted shares, 92,669 restricted shares weregranted to 17 objects, the grant price was CNY 89.466 per share and the listing date was February 17,2023.
P. On January 23, 2024, the Company held the 38th Meeting of the 10th Board of Directors and the
20th Meeting of the 10th Board of Supervisors, at which the Proposal on the Repurchase andRetirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal onthe Satisfaction of Unlocking Conditions for the First Unlocking Period of the 2021 Restricted ShareIncentive Plan were reviewed and approved respectively. The Company's Board of Supervisors issueda review opinion, and the law firm and the independent financial advisor issued a legal opinion and theindependent financial advisor’s report respectively.
Q. On February 22, 2024, the Company disclosed the Reminder Announcement on Unlocked Shares inthe First Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public Trading.As such, the unlocked restricted shares in the first unlocking period of the 2021 Restricted ShareIncentive Plan were allowed for public trading on February 22, 2024.
R. On June 4, 2024, the Proposal on the Repurchase and Retirement of Certain Restricted Shares wasapproved at the 40th Meeting of the 10th Board of Directors and the 22nd Meeting of the Board ofSupervisors, respectively. On June 5, the Company disclosed the Announcement on the Repurchaseand Retirement of Certain Restricted Shares to Reduce Registered Capital and Notice to Creditors. Bythe expiration of the declaring period, the Company had not received any declaration from the relevantcreditors for early payout of debts or provision of guarantee.
S. On August 14, 2024, the Company disclosed the Announcement on the Completion of theRepurchase and Retirement of Certain Restricted Shares. As at August 14, 2024, the Companycompleted the repurchase and retirement of 21,266 restricted shares.
T. On September 23, 2024, the Company held the Fourth Meeting of the 11th Board of Directors andthe Third Meeting of the 11th Board of Supervisors, at which the Proposal on the Satisfaction ofUnlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021Restricted Share Incentive Plan and the Proposal on the Repurchase and Retirement of CertainRestricted Shares and the Adjustment of Repurchase Price were reviewed and approved respectively.The Company's Board of Supervisors issued a review opinion, and the law firm issued a legal opinion.
U. On September 28, 2024, the Company disclosed the Reminder Announcement on Unlocked Sharesin the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted ShareIncentive Plan Being Allowed for Public Trading. As such, the unlocked restricted shares in the firstunlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan wereallowed for public trading on October 9, 2024.
V. On December 18, 2024, the Company disclosed the Announcement on the Completion of theRepurchase and Retirement of Certain Restricted Shares. As at December 18, 2024, the Companycompleted the repurchase and retirement of 15,000 restricted shares.
W. On January 21, 2025, the Company held the Eighth Meeting of the 11th Board of Directors and theSixth Meeting of the 11th Board of Supervisors, at which the Proposal on the Satisfaction of UnlockingConditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021 RestrictedShare Incentive Plan and the Proposal on the Satisfaction of Unlocking Conditions for the Second
Unlocking Period of the 2021 Restricted Share Incentive Plan were reviewed and approved respectively.
X. On February 14, 2025, the Company disclosed the Reminder Announcement on Unlocked Shares inthe First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted ShareIncentive Plan Being Allowed for Public Trading. As such, the unlocked restricted shares in the firstunlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan wereallowed for public trading on February 17, 2025.
Y. On February 21, 2025, the Company disclosed the Reminder Announcement on Unlocked Shares inthe Second Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for PublicTrading. As such, the unlocked restricted shares in the second unlocking period of the 2021 RestrictedShare Incentive Plan were allowed for public trading on February 24, 2025.
Equity incentives for directors and senior management? Applicable ? N/A
Unit: share
| Name | Office title | Stock options held at the beginning of the reporting period | Stock options granted in the reporting period | Exercisable share options for the reporting period | Exercised share options in the reporting period | Exercise price for exercised share options in the reporting period (CNY / share) | Stock options held at the end of the reporting period | Market price at the end of the reporting period (CNY / share) | Restricted shares held at the beginning of the reporting period | Unlocked shares in the reporting period | Restricted shares granted in the reporting period | Grant price of the restricted shares (CNY/ share) | Restricted shares held at the end of the reporting period |
| Liu Miao | Chairman of the board | 95,900 | 38,360 | 92.71 | 57,540 | ||||||||
| Lin Feng | Director, General manager | 95,900 | 38,360 | 92.71 | 57,540 | ||||||||
| Shen Caihong | Deputy general manager | 76,700 | 30,680 | 92.71 | 46,020 | ||||||||
| Xie Hong | CFO | 76,700 | 30,680 | 92.71 | 46,020 | ||||||||
| He Cheng | Deputy | 76,700 | 30,680 | 92.71 | 46,020 |
| general manager | |||||||||||||
| Zhang Suyi | Director, Deputy general manager | 76,700 | 30,680 | 92.71 | 46,020 | ||||||||
| Xiong Pingting | Director, Deputy general manager | 62,800 | 25,120 | 92.71 | 37,680 | ||||||||
| Li Yong | Deputy general manager, Secretary of the board | 62,800 | 25,120 | 92.71 | 37,680 | ||||||||
| Zhao Bingkun | Deputy general manager | 30,000 | 12,000 | 92.71 | 18,000 | ||||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 654,200 | 261,680 | 0 | -- | 392,520 |
| Notes (if any) | The first grant date for the 2021 Restricted Share Incentive Plan was December 29, 2021 and the registration date of the grant was February 21, 2022. And the unlocked restricted shares in the first unlocking period of the Incentive Plan were allowed for public trading on February 22, 2024. | ||||||||||||
Appraisal mechanism and incentives for senior managementFor details, please refer to the 2021 Restricted Share Incentive Plan (Draft) and Summary of LuzhouLaojiao Co., Ltd., the Performance Appraisal Methods for the 2021 Restricted Share Incentive Plan ofLuzhou Laojiao Co., Ltd., and the Management Methods for the 2021 Restricted Share Incentive Planof Luzhou Laojiao Co., Ltd., which have been disclosed by the Company on www.cninfo.com.cn onSeptember 26, 2021.
11.2. Implementation of employee stock ownership plans
? Applicable ? N/A
11.3. Other incentive measures for employees
? Applicable ? N/A
12. Establishment and implementation of the internal control systemduring the reporting period
12.1. Establishment and implementation of the internal control system
During the reporting period, in accordance with the Basic Rules for Internal Control of Enterprises,relevant laws, administrative regulations, normative documents, and other regulatory requirementsconcerning internal control, as well as the reality of the Company, the Company consistently improvedand optimized its internal control systems and established a well-developed system that covered thecorporate governance, administrative management, operations management, financial management,human resources, production guarantee, and safety and environmental protection. Additionally, itstrengthened the implementation, supervision, inspection, feedback, and improvement of the internalcontrol systems in the operations management to ensure that each internal control system isreasonable, complete, and effective, thereby promoting the sound, sustainable development of theCompany.
12.2. Material internal control deficiencies found in the reporting period
□ Yes ? No
13. The Company’s management and control of subsidiaries during thereporting period
| Company name | Consolidation plan | Consolidation progress | Problems arising in consolidation | Solutions taken | Solution implementation progress | Subsequent solutions |
| N/A | ||||||
14. Internal control assessment report and auditor report
14.1. Internal control assessment report
| Disclosure date of the internal control assessment report | April 28, 2025 |
| Disclosure index of the internal control assessment report | 2024 Internal Control Assessment Report (http://www.cninfo.com.cn/) |
| Ratio of the total assets of the appraised entitles to the consolidated total assets | 90.00% | |
| Ratio of the operating revenues of the appraised entitles to the consolidated operating revenue | 90.00% | |
| Deficiencies identification standard | ||
| Type | Financial report | Non-financial report |
| Qualitative standard | Material deficiencies：（1）Correction of material errors in financial reports that have been announced (except retroactive adjustment of previous years due to changes in policies or other objective factors)；（2）Material misstatement of current financial report which was unrecognized but found by the auditor；（3） Corrupt transaction of senior management；（4）Audit committee and internal audit department are not effective to the internal control supervision . | Material deficiencies：（1）violate national regulations and laws；（2）The Company’s decision-making procedures are unscientific；if there is a decision-making misplay, it will result in significant deal failure; （3）The substantial loss of managerial or technical staff；（4）Important business lacks system control or system failure, important economic business has internal control system guidance, but with no effective operation；（5）material deficiencies of internal control cannot be rectified in time. |
| Quantitative standard | 1. Material deficiencies：Misstatement ≥ 5% of total profits；Misstatement ≥ 1% of total assets；Misstatement ≥ 5% of total operating revenue；Misstatement ≥5% of owner's equity 2. Significant deficiencies：3% of gross profits≤Misstatement<5% of gross profits；0.5% of total assets≤Misstatement<1% of total assets；3% of total operating revenue≤Misstatement<5% of total operating revenue；3% of owner's equity≤Misstatement<5% of owner's equity. 3. General deficiencies：Misstatement<3% of gross profits；Misstatement<0.5% of total assets；Misstatement<3% of total operating revenue；Misstatement<3% of owner's equity. | 1. Material deficiencies：loss≥5% of net profits. 2. Significant deficiencies：3% of net profits≤ loss＜5% of net profits. 3. General deficiencies：loss＜3% of net profits |
| Number of financial-report material deficiencies | 0 | |
| Number of non-financial-report material deficiencies | 0 | |
| Number of significant financial-report related deficiencies | 0 | |
| Number of significant Non-financial-report related deficiencies | 0 | |
14.2. Internal control auditor report
? Applicable ? N/A
| Deliberation opinion section in the internal control audit report | |
| The Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the Basic Rules on Enterprise Internal Control and other applicable regulations. | |
| Disclosure of internal control audit report | Disclosed |
| Disclosure date of the internal control audit report | April 28, 2025 |
| Disclosure index of the internal control audit report | 2024 Internal Control Auditor Report (http://www.cninfo.com.cn/) |
| Type of the audit’s opinion | Standard unqualified opinion |
| Significant deficiencies found in the non-financial report | No |
The accounting firm issued the internal control audit report of non-standard opinions? Yes ? No
Whether the internal control audit report issued by the accounting firm is consistent with the self-assessment report issued by the board of directors.? Yes ? No
15. Remediation of Problems Identified by Self-inspection in the SpecialCampaign on Listed Company GovernanceNone.
Section V Environmental and Social Responsibility
1. Information about environment protection
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed bythe environmental protection department? Yes □ No
Policies and industry standards on environmental protectionIn the process of production and operation, the Company strictly follow the laws, regulations andindustry standards related to environmental protection, such as the Environmental Protection Law ofthe People's Republic of China, Law of the People's Republic of China on Environmental ImpactAssessment, Law of the People's Republic of China on Atmospheric Pollution Prevention and Control,Law of the People's Republic of China on Water Pollution Prevention and Control, AdministrativeMeasures for the Legal Disclosure of Enterprise Environmental Information, Regulations on theAdministration of Environmental Protection of Construction Projects of the People's Republic of China,Regulations on Administration of Pollutant Discharge Permits, Policies and Industry Standards onEnvironmental Protection, Standard for Pollution Control on Hazardous Waste Storage, Standards forthe Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry, Regulations on thePrevention and Control of Environmental Pollution by Solid Waste in Sichuan Province, andRegulations on Environmental Protection of Sichuan Province.
Environmental protection administrative permissionIn 2024, Luzhou Laojiao Co., Ltd. obtained eight ecological and environmental administrative permits,including a total of five permits for change and renewal of discharge permits and three approval ofenvironmental impact assessment reports.
| Name of permit | Administrative permit No. | Review and issuance authority | Acquiring time | Valid term | Permitted matter | Remark |
| Reply of Luzhou Municipal Ecology and Environment Bureau to the Report of Luzhou Laojiao Brewing Co., Ltd. on the Environmental Impact of Thermochemical Energy- and Resource-based Coupled Utilization Technology of Brewing Waste | L.SH.H.J.H. [2024] No. 33 | Luzhou Municipal Ecology and Environment Bureau | March 12, 2024 | 5 years | In Sichuan Luzhou Baijiu Industrial Park, a production line for the resource- and energy-based utilization of disposed grains will be built, processing distiller's 50,450.45 tons of grains per year and producing 2,880 tons of biochar per year and 15,192.68 tons of grain residue per year. This project will generate additional annual air pollutant emissions of: sulfur dioxide 0.18 t/a, nitrogen oxides 1.44 t/a, particulate matter 1.06 t/a, and volatile organic compounds 1.49 t/a. The main water pollutants from the project will be treated by the Sichuan Luzhou Baijiu Industrial Park Wastewater Treatment Plant, with final discharge volumes as follows: chemical oxygen demand (COD) 2.26 t/a, ammonia nitrogen 0.113 | Newly acquired |
| t/a, and total phosphorus 0.0226 t/a. The actual emission volumes of the main pollutants for this project are subject to confirmation during the pollutant discharge permit application. | ||||||
| Reply of Luzhou Municipal Ecology and Environment Bureau to the Report of Sichuan Luzhou Baijiu Industrial Park (Huangyi) on the Environmental Impact of Thermoelectric Cogeneration Expansion Project (Phase I) | L.SH.H.J.H. [2024] No. 10 | Luzhou Municipal Ecology and Environment Bureau | January 10, 2024 | 5 years | Within the Huangyi Brewery Eco-Park, based on the existing two 75 t/h and one 20 t/h gas-fired steam boilers, and two 7 MW back-pressure turbine generator units, the project plans to build two new 220 t/h gas-fired steam boilers (one in use and one as a backup), and one 21 MW back-pressure turbine generator unit. Auxiliary facilities will be constructed, including the fuel handling system, demineralized water system, compressed air system, water supply and drainage system and fire protection system. Additional annual air pollutant emissions from the project are: sulfur dioxide 10.66 t/a, nitrogen oxides 80.79 t/a, and particulate matter 4.85 t/a. After project completion, the total annual air pollutant emissions from the entire heat supply center will be: sulfur dioxide 18.89 t/a, nitrogen oxides 135.44 t/a, and particulate matter 8.59 t/a. Before being treated by the Sichuan Luzhou Baijiu Industrial Park Wastewater Treatment Plant, the wastewater pollutant emissions are: COD 269.28 t/a, ammonia nitrogen 20.2 t/a, and total phosphorus 2.02 t/a. After treatment, the discharge volumes will be: COD 20.20 t/a, ammonia nitrogen 1.01 t/a, and total phosphorus 0.20 t/a. Upon completion, the wastewater discharge volumes from the entire heat supply center will be: COD 34.93 t/a, ammonia nitrogen 1.75 t/a, and total phosphorus 0.35 t/a. The actual emission volumes of the main pollutants for this project are subject to confirmation during the pollutant discharge permit application. | Newly acquired |
| Reply of Luzhou Municipal Ecology and Environment Bureau to the Report of Luzhou Laojiao Brewing Co., Ltd. on the Environmental Impact of Luzhou Laojiao Technical Upgrade Project of Intelligent Brewing (Phase I & II) | L.SH.H.J.H. [2024] No. 35 | Luzhou Municipal Ecology and Environment Bureau | April 18, 2024 | 5 years | The project is located in the Sichuan Luzhou Baijiu Industrial Park, with a total planned land area of 633,047 m2 (approximately 950 mu). The project will be expanded in phases. Phase I includes the construction of two brewing workshops, nine semi-open liquor rooms, a sorghum pretreatment area, a rice husk pretreatment area, a circulating water station, a maintenance workshop, and an air compression station, adding a production capacity of 80,000 tons per year for strong aromatic base baijiu and a storage capacity of 104,000 tons for base baijiu. Phase II involves the construction of 10 ceramic liquor rooms, adding a storage capacity of 56,000 tons for base baijiu. Upon completion of the project, the entire plant will have an annual production capacity of | Newly acquired |
Industry discharge standards and pollutants in producing and operating activities
| Company name | Type of main pollutant and particular pollutant | Name of main pollutant and particular pollutant | Discharge type | Number of discharge outlet | Distribution of discharge outlet | Emission concentration/intensity | Pollution discharge standard | Total emission | Approved total emission | Excessive discharge |
| Luzhou Laojiao Co., Ltd. | Water pollutant | COD | Direct discharge | 1 | Luohan Brewery Eco-Park | 20.3mg/L | 50mg/L | 7.7408t | 23.183t/a | No |
| Luzhou Laojiao Co., Ltd. | Water pollutant | Ammonia nitrogen | Direct discharge | 1 | Luohan Brewery Eco-Park | 0.328mg/L | 5mg/L | 0.1239t | 2.017t/a | No |
| Luzhou Laojiao Co., Ltd. | Water pollutant | Total nitrogen | Direct discharge | 1 | Luohan Brewery Eco-Park | 7.482mg/L | 15mg/L | 2.7891t | 5.796t/a | No |
| Luzhou Laojiao | Water pollutant | Total phosphor | Direct discharge | 1 | Luohan Brewery | 0.074mg/L | 0.5mg/L | 0.0294t | 0.232t/a | No |
205,000 tons of strong aromaticbase baijiu and a storage capacityof 540,000 tons for base baijiu. The
total investment of the project is
CNY 6.075 billion, of which CNY
25.5 million is invested in
environmental protection.
| 205,000 tons of strong aromatic base baijiu and a storage capacity of 540,000 tons for base baijiu. The total investment of the project is CNY 6.075 billion, of which CNY 25.5 million is invested in environmental protection. | ||||||
| Pollutant Discharge Permit — Luzhou Laojiao Brewing Co., Ltd. (Energy Center of Sichuan Luzhou Baijiu Industrial Park) | 91510500204755181G002V | Luzhou Municipal Ecology and Environment Bureau | October 12, 2024 | October 26, 2026 | 1. The circulating cooling water discharge outlet shall comply with the Class III discharge standard of the Integrated Wastewater Discharge Standard (GB8978-1996); 2. The plant boundary noise monitoring shall be combined with that of Huangyi Brewery Eco-Park of Luzhou Laojiao Co., Ltd. and shall comply with Class 3 standards under the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008). | Change |
| Pollutant Discharge Permit — Luzhou Laojiao Co., Ltd. (Huangyi Brewery Eco-Park) | 91510500204706718H004Q | Luzhou Municipal Ecology and Environment Bureau | July 26, 2024 | July 25, 2029 | Licensed annual emission limits: Air pollutants: particulate matter 0.06 t/a, sulfur dioxide 0.18 t/a, and nitrogen oxides 1.44 t/a; water pollutants: COD 482.76 t/a, ammonia nitrogen 36.213 t/a, total nitrogen 62.5 t/a, total phosphorus 3.6226 t/a. | Change |
| Discharge Permit for Luzhou Laojiao Co., Ltd. (Huangyi Brewery Eco-Park) | 91510500204706718H004Q | Luzhou Municipal Ecology and Environment Bureau | February 2, 2024 | February 1, 2029 | Permitted annual discharge limits for wastewater: 480.5t/a for chemical oxygen demand (COD), 36.1t/a for ammonia nitrogen, 62.5t/a for total nitrogen (TN), and 3.6t/a for total phosphorus (TP). | Change |
| Discharge Permit for Luzhou Laojiao Co., Ltd. (National Cellar and Zaojiaoxiang Bases) | 91510500204706718H003Q | Luzhou Municipal Ecology and Environment Bureau | January 6, 2024 | September 2, 2026 | Permitted standards and limits for non-NMHC: No applicable standards. | Change |
| Discharge Permit for Luzhou Laojiao Co., Ltd. (Luohan Brewery Eco-Park) | 91510500204706718H001V | Luzhou Municipal Ecology and Environment Bureau | January 8, 2024 | November 28, 2027 | Permitted standards and limits for non-NMHC: No applicable standards. | Change |
| Co., Ltd. | us | Eco-Park | ||||||||
| Luzhou Laojiao Co., Ltd. | Air pollutant | PM | Organized discharge | 2 | Luohan Brewery Eco-Park | 0.742mg/m3 | 20mg/m3 | 0.1044t | / | No |
| Luzhou Laojiao Co., Ltd. | Air pollutant | Sulfur dioxide | Organized discharge | 2 | Luohan Brewery Eco-Park | 0.804mg/m3 | 50mg/m3 | 0.1342t | / | No |
| Luzhou Laojiao Co., Ltd. | Air pollutant | Oxynitride | Organized discharge | 2 | Luohan Brewery Eco-Park | 23.564mg/m3 | 150mg/m3 | 3.7058t | 22.1t/a | No |
| Luzhou Laojiao Co., Ltd. | Air pollutant | PM | Organized discharge | 1 | Luohan Brewery Eco-Park | 0mg/m3 | 20mg/m3 | 0t | 1.1t/a | No |
| Luzhou Laojiao Co., Ltd. | Air pollutant | Sulfur dioxide | Organized discharge | 1 | Luohan Brewery Eco-Park | 0mg/m3 | 50mg/m3 | 0t | / | No |
| Luzhou Laojiao Co., Ltd. | Air pollutant | Oxynitride | Organized discharge | 1 | Luohan Brewery Eco-Park | 0mg/m3 | 150mg/m3 | 0t | 23.3t/a | No |
| Luzhou Laojiao Co., Ltd. | Water pollutant | COD | Indirect discharge | 1 | Huangyi Brewery Eco-Park | 36.013mg/L | 400mg/L | 22.1593t | 482.76t/a | No |
| Luzhou Laojiao Co., Ltd. | Water pollutant | Ammonia nitrogen | Indirect discharge | 1 | Huangyi Brewery Eco-Park | 1.375mg/L | 30mg/L | 0.8128t | 36.213t/a | No |
| Luzhou Laojiao Co., Ltd. | Water pollutant | Total nitrogen | Indirect discharge | 1 | Huangyi Brewery Eco-Park | 19.859mg/L | 50mg/L | 12.2214t | 62.5t/a | No |
| Luzhou Laojiao Co., Ltd. | Water pollutant | Total phosphorus | Indirect discharge | 1 | Huangyi Brewery Eco-Park | 0.895mg/L | 3.0mg/L | 0.5529t | 3.6226t/a | No |
| Luzhou Laojiao Brewing Co., Ltd. | Air pollutant | Dust | Organized discharge | 2 | Energy Center of Sichuan Luzhou Baijiu Industrial Park | 0.7545mg/m3 | 5mg/m3 | 0.4626t | 8.640t/a | No |
| Luzhou Laojiao Brewing Co., Ltd. | Air pollutant | PM | Organized discharge | 1 | Energy Center of Sichuan Luzhou Baijiu Industrial Park | 0.9982mg/m3 | 20mg/m3 | 0.0117t | No | |
| Luzhou Laojiao Brewing Co., Ltd. | Air pollutant | Sulfur dioxide | Organized discharge | 2 | Energy Center of Sichuan Luzhou Baijiu Industrial Park | 0.47935mg/m3 | 35mg/m3 | 0.3238t | 18.880t/a | No |
| Luzhou Laojiao Brewing Co., Ltd. | Air pollutant | Sulfur dioxide | Organized discharge | 1 | Energy Center of Sichuan Luzhou Baijiu | 0.5527mg/m3 | 50mg/m3 | 0.0064t | No |
| Industrial Park | ||||||||||
| Luzhou Laojiao Brewing Co., Ltd. | Air pollutant | Oxynitride | Organized discharge | 2 | Energy Center of Sichuan Luzhou Baijiu Industrial Park | 30.4398mg/m3 | 100mg/m3 | 18.7061t | 136.080t/a | No |
| Luzhou Laojiao Brewing Co., Ltd. | Air pollutant | Oxynitride | Organized discharge | 1 | Energy Center of Sichuan Luzhou Baijiu Industrial Park | 49.2419mg/m3 | 150mg/m3 | 0.4039t | No |
Treatments of pollutantsA. Waste water: Areas of the Company that produce wastewater are National Cellar Brewery Base,Zaojiaoxiang Brewery Base, Xiaoshi Brewery Base, Anning Technology Park, Luohan Brewery Eco-Park, and Huangyi Brewery Eco-Park. In National Cellar Brewery Base, Zaojiaoxiang Brewery Base,Xiaoshi Brewery Base, and Anning Technology Park, the high-concentration brewing wastewater istemporarily collected in pools (or tanks), and is later transferred to the wastewater treatment station ofHuangyi Brewery Eco-Park by truck for treatment. The wastewater treatment stations of LuohanBrewery Eco-Park and Huangyi Brewery Eco-Park are equipped with online monitors to automaticallymonitor COD, ammonia nitrogen, total phosphorus, total nitrogen, pH value and flows, and transmit themonitoring data to the supervision platform of the higher authority. During the reporting period, theCompany reduced wastewater discharge by more than 3.08 million tons through methods such asreclaimed water reuse and cooling water recycling. The Company's facilities for prevention and controlof wastewater pollution are under normal operations, ensuring up-to-standard discharge throughgeneral discharging outlets. Compared with last year, suspended matter discharge was reduced by
6.82%, and Five-day BOD discharge by 16.81%.
B. Waste gas: Main areas of the Company that produce exhaust gas are National Cellar Brewery Base,Zaojiaoxiang Brewery Base, Xiaoshi Brewery Base, Luohan Brewery Eco-Park, and Huangyi BreweryEco-Park. In National Cellar Brewery Base, natural gas boilers are used, while in Xiaoshi Brewery Baseand Zaojiaoxiang Brewery Base, direct-fired bottom boilers are used. The natural gas boilers of LuohanBrewery Eco-Park (20t/h, 30t/h) and the natural gas boilers of Huangyi Brewery Eco-Park (20t/h, 75t/h,75t/h) are equipped with online monitors to automatically monitor exhaust gas, and transmit themonitoring data to the supervision platform of the higher authority. Low NOx combustion technology isadopted for the natural gas boilers. During the reporting period, the Company's facilities for preventionand control of exhaust gas pollution were under normal operations, ensuring up-to-standard emission ofexhaust gas through outlets. Compared with last year, PM discharge was reduced by 34.28%, nitrogenoxide discharge by 22.03%, and sulfur dioxide by 2.69%.
C. Solid waste: The Company has established a digital ledger for general solid waste tocomprehensively manage the types, quantities, flows, storage, utilization methods, and disposal entities
of general industrial solid waste. In strict compliance with relevant laws and regulations such as theAdministrative Measures for the Transfer Manifest of Hazardous Waste and the Standard for PollutionControl on Hazardous Waste Storage, the Company regulated the collection, temporary storage,transfer, and disposal of hazardous waste. The Company has completed the industry’s firstdemonstration project for the coupled utilization of energy and resources from brewing waste, with anannual processing capacity of 100,000 tons. The project has achieved a resource utilization rate of over90% for brewing waste and a gas energy recycling rate of over 95%, filling a technological gap in thefield of thermochemical treatment of brewing waste (discarded grains). It represents a breakthrough inaddressing the common and critical technologies for efficient conversion and safe disposal of discardedgrains in the distillery industry.
D. Noise: During the reporting period, the Company strictly complied with the Law of the People’sRepublic of China on the Prevention and Control of Environmental Noise Pollution. It mitigated noisepollution by selecting low-noise equipment, installing vibration dampers, and enhancing themaintenance and operational management of equipment used in production processes.
Emergency plan for environmental emergenciesThe Company has revised and issued in 2023 the Contingency Plan for Environmental Emergenciesin Jiangyang District of Luzhou Laojiao Co., Ltd. (2023), and the Contingency Plan for EnvironmentalEmergencies in Longmatan District of Luzhou Laojiao Co., Ltd. (2023), which have been filed with theLuzhou Municipal Environmental Emergency Command Platform. In 2024, the Companyimplemented relevant management requirements in accordance with the contingency plans, andcarried out emergency training and emergency drills.
Environmental self-monitoring plan
| Monitoring site | Monitoring indicator | Implementation standard | Emission limit | Monitoring frequency | Monitoring form | Monitoring compliance rate in 2024 |
| Unorganized monitoring points 1#-4# for the exhaust gas emission outlets of Luohan Brewery Eco-Park | Odor concentration | Emission Standards for Odor Pollutants (GB14554- 93) | 20 (dimensionless) | 1 time/half-year | Manual | 100% |
| Hydrogen sulfide | 0.06mg/m3 | |||||
| Ammonia | 1.5mg/m3 | |||||
| NMHC | / | / | ||||
| Particulate matters | Integrated Emission Standards for Air Pollutants (GB16297-1996) | 1mg/m3 | ||||
| Exhaust gas emission outlets DA022, DA021 (unused) and DA020 of Luohan Brewery Eco-Park | Ringelman emittance | Emission Standards for Air Pollutants for Boiler (GB13271-2014) | ≤1 | 1 time/quarter | Manual | 100% |
| Nitrogen oxide | 150mg/m3 | Automatic | ||||
| Particulate matters | 20mg/m3 | |||||
| Sulfur dioxide: | 50mg/m3 | |||||
| Exhaust gas emission outlet DA019 of Luohan Brewery Eco-Park | Hydrogen sulfide | Emission Standards for Odor Pollutants (GB14554-93) | 15000 / | 1 time/half-year | Manual | 100% |
| Ammonia | / 1.8kg/h | |||||
| Odor concentration | / 27kg/h | |||||
| Exhaust gas emission outlet DA018 of Luohan Brewery Eco-Park | Sulfur dioxide: | Integrated Emission Standards for Air Pollutants (GB16297-1996) | 240mg/m3 0.77kg/h | 1 time/quarter | Manual | 100% |
| Particulate matters | 120mg/m3 3.5kg/h | |||||
| Nitrogen oxide | 550mg/m3 |
| 2.6kg/h | ||||||
| Volatile organic compounds | / | / | ||||
| Exhaust gas emission outlet DA017 of Luohan Brewery Eco-Park | NMHC | / | / | 1 time/quarter | Manual | 100% |
| Exhaust gas emission outlets DA001-DA016 of Luohan Brewery Eco-Park | Particulate matters | Integrated Emission Standards for Air Pollutants (GB16297-1996) | 120 mg/m3 | 1 time/half-year | Manual | 100% |
| Main outlet DW001 of the wastewater treatment station of Luohan Brewery Eco-Park | Flow | Standards for the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry (GB27931-2011) | / | 1 time/quarter | Automatic | 100% |
| PH value | 6-9 | |||||
| COD | 50mg/L | |||||
| Ammonia nitrogen | 5mg/L | |||||
| TP | 0.5mg/L | |||||
| TN | 15mg/L | |||||
| Suspended solids | 20mg/L | 1 time/month | Manual | |||
| Five-day BOD | 20mg/L | |||||
| Chroma | 20 | |||||
| Rainwater outlets DW002-DW006 of Luohan Brewery Eco-Park | Suspended solids | Standards for the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry (GB2731-2011) | 20 mg/L | 1 time/month (1 time/quarter in case of no abnormalities monitored) | Manual | 100% |
| COD | 50mg/L | |||||
| Noise monitoring points 1-4# at the boundary of Luohan Brewery Eco-Park | Boundary noise | Emission Standard for Noise of Industrial Enterprises at Boundary (GB12348-2008) | Daytime: 60 dB (A); nighttime: 50 dB (A) | 1 time/quarter | Manual | 100% |
| Circulating cooling water outlet DW002 of the Energy Center of Baijiu Industrial Park | COD | Integrated Wastewater Discharge Standard (GB8978-1996) | 500mg/L | 1 time/quarter | Manual | 100% |
| PH value | 6-9mg/L | |||||
| TP (P) | /mg/L | |||||
| Wastewater outlet DW001 of the Energy Center of Sichuan Luzhou Baijiu Industrial Park | PH value | Integrated Wastewater Discharge Standard (GB8978-1996) | 6-9 | 1 time/quarter | Manual | 100% |
| Total dissolved solids (TDS) | / | |||||
| Suspended solids | 140mg/L | |||||
| Five-day BOD | 80mg/L | |||||
| COD | 400mg/L | |||||
| TN | 50mg/L | |||||
| Ammonia nitrogen | 30mg/L | |||||
| TP | 3mg/L | |||||
| Boiler exhaust gas vents DA001-DA002 of the Energy Center of Sichuan Luzhou Baijiu Industrial Park | Ringelman emittance | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | ≤1 | 1 time/quarter | Manual | 100% |
| Nitrogen oxide | 100mg/m3 | Automatic | ||||
| Soot | 5mg/m3 | |||||
| Sulfur dioxide: | 35mg/m3 | |||||
| Boiler exhaust gas vent DA003 of the Energy Center of Sichuan Luzhou Baijiu Industrial Park | Ringelman emittance | Emission Standards for Air Pollutants for Boiler (GB13271-2014) | ≤1 | 1 time/quarter | Manual | 100% |
| Nitrogen oxide | 150mg/m3 | Automatic | ||||
| Particulate matters | 20mg/m3 | |||||
| Sulfur dioxide | 50mg/m3 | |||||
| Rainwater outlets DW004-DW010 of Huangyi Brewery Eco-Park | Suspended solids | Standards for the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry (GB2731-2011) | 50mg/L | 1 time/month (1 time/quarter in case of no abnormalities monitored) | Manual | 100% |
| COD | 100mg/L | |||||
| Unorganized monitoring points 1#-4# at the boundary of Huangyi Brewery Eco-Park | Odor concentration | Emission Standards for Odor Pollutants (GB14554-93) | 20 (dimensionless) | 1 time/quarter | Manual | 100% |
| Hydrogen sulfide | 0.06mg/m3 | |||||
| Ammonia | 1.5mg/m3 | |||||
| NMHC | / | / | ||||
| Particulate | Integrated Emission | 1mg/m3 |
| matters | Standards for Air Pollutants (GB16297-1996) | |||||
| DA041 and DA042 of Huangyi Brewery Eco-Park | Odor concentration | Emission Standards for Odor Pollutants (GB14554-93) | 2000 (dimensionless) | 1 time/half-year | Manual | 100% |
| Ammonia | 4.9kg/h | |||||
| Hydrogen sulfide | 0.33kg/h | |||||
| DA096-DA097 of Huangyi Brewery Eco-Park | NMHC | / | / | 1 time/quarter | Manual | 100% |
| DA034-DA040, DA043-DA070, DA076-DA086, DA088-DA095, DA098, and DA099-DA101 of Huangyi Brewery Eco-Park | Particulate matters | Integrated Emission Standards for Air Pollutants (GB16297-1996) | 120mg/m3 | 1 time/half-year | Manual | 100% (DA100-101 not yet put into operation ) |
| DA102 of Huangyi Brewery Eco-Park | Particulate matters | Emission Standard of Air Pollutants for Industrial Kiln and Furnace (GB 9078-1996) | 200mg/m3 | 1 time/month | Manual | Not yet put into operation |
| Sulfur dioxide | / | |||||
| Nitrogen oxide | / | |||||
| Ammonia (NH3) | Emission Standards for Odor Pollutants (GB14554-93) | / 8.55kg/h | 1 time/quarter | |||
| NMHC | / | / | ||||
| Main outlet of the wastewater treatment station of Huangyi Brewery Eco-Park | Flow | Standards for the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry (GB2731-2011) | / | 1 time/quarter | Automatic | 100% |
| PH value | 6-9 | |||||
| COD | 400mg/L | |||||
| Ammonia nitrogen | 30mg/L | |||||
| TP | 3mg/L | |||||
| TN | 50mg/L | |||||
| Suspended solids | 140mg/L | 1 time/month | Manual | |||
| Five-day BOD | 80mg/L | |||||
| Chroma | 80 | |||||
| Noise monitoring points 1-4# at the boundary of Huangyi Brewery Eco-Park | Boundary noise | Emission Standard for Noise of Industrial Enterprises at Boundary (GB12348-2008) | Daytime: 65 dB (A); nighttime: 55 dB (A) | 1 time/quarter | Manual | 100% |
| Unorganized monitoring points 1#-7# at Xiaoshi Brewery Base | Odor concentration | Emission Standards for Odor Pollutants (GB14554- 93) | 20 | 1 time/half-year | Manual | 100% |
| NMHC | / | / | ||||
| Boiler exhaust gas vents DA001-DA010 of Xiaoshi Brewery Base | Ringelman emittance | Emission Standards for Air Pollutants for Boiler (GB13271-2014) | ≤1 | 1 time/year | Manual | 100% |
| Soot | 20mg/m3 | |||||
| Sulfur dioxide: | 50mg/m3 | |||||
| Nitrogen oxide | 150mg/m3 | 1 time/month | ||||
| Noise monitoring points at the boundary of Xiaoshi Brewery Base | Boundary noise | Emission Standard for Noise of Industrial Enterprises at Boundary (GB12348-2008) | Daytime: 60 dB (A) | 1 time/quarter | Manual | 100% |
| Unorganized monitoring points 1#-4# of National Cellar and 1#-3# of Zaojiaoxiang Brewery Bases | Odor concentration | Emission Standards for Odor Pollutants (GB14554- 93) | 20 | 1 time/half-year | Manual | 100% |
| NMHC | / | / | ||||
| Boiler exhaust gas vents DA001-DA003 of National Cellar and Zaojiaoxiang Brewery Bases | Ringelman emittance | Emission Standards for Air Pollutants for Boiler (GB13271-2014) | ≤1 | 1 time/year | Manual | 100% |
| Soot | 20mg/m3 | |||||
| Sulfur dioxide: | 50mg/m3 | |||||
| Nitrogen oxide | 150mg/m3 | 1 time/month | ||||
| Noise monitoring points at the boundary of National Cellar and Zaojiaoxiang Brewery Bases | Boundary noise | Emission Standard for Noise of Industrial Enterprises at Boundary (Class 4 for street frontage) | Daytime: 60 dB (A) | 1 time/quarter | Manual | 100% |
| Rainwater outlet DW003 of National Cellar Brewery Base | Suspended solids | Standards for the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry (GB2731-2011) | 20mg/L | 1 time/month (1 time/quarter in case of no abnormalities monitored) | Manual | 100% |
Input in environmental management and protection and the payment of environmental protection-related taxesDuring the reporting period, CNY 58.01 million was input in environmental governance and protection,and CNY 156 thousand was paid in environmental protection tax as required.
| Taxable pollutant | Amount of tax payable (CNY 10,000) | Actual amount paid (CNY 10,000) | Tax deduction (CNY 10,000) |
| Water pollutant and air pollutant | 16.1 | 15.6 | 0.5 |
Measures taken to reduce carbon emissions during the reporting period and the results? Applicable ? N/AThe Company reduced CO2 emissions through resource recycling. Waste heat recovery is carried outduring the bran steaming stage to save steam, reducing natural gas consumption by approximately
1.24 million cubic meters and carbon dioxide emissions by more than 2,700 tons per year. TheCompany recycled the marsh gas generated from the wastewater treatment process as boiler fuel,with 3.5992 million cubic meters of marsh gas recycled during the reporting period, and more than52,281 tons of carbon dioxide emissions were reduced. In addition, the Company reduced carbondioxide emissions by purchasing green power. During the reporting period, 5,944,000 kilowatt-hoursof green power were purchased and carbon emissions were reduced by 3,190 tons.
Administrative penalties received in the reporting period due to environmental issues
| The Company or subsidiary | Reason for penalties | Regulation violated | Penalties | Impact on the Company | Rectification |
| N/A | |||||
Other information about environmental protection that should be disclosedNone
Other information about environment protectionNone
2. Social responsibility
See the 2024 Environmental, Social and Governance (ESG) Report disclosed on the same day withthis Annual Report.
3. Efforts in poverty alleviation and rural revitalization
3.1. Work plan for rural revitalization in 2024
In 2024, the Company will strictly implement the arrangement of the central, provincial and municipalParty committees regarding effectively connecting consolidation and expansion of poverty alleviation
achievements with rural revitalization, as well as follow the principle of "what the locality needs is whatthe enterprise can provide”. Focusing on the bottom-line assistance for Hongyuan County, as well asthe targeted assistance for Guntang Village in Hongyuan County, Xiangtian Village in Gulin County,Hongdongqiao Village and Baiyang Village in Xuyong County, a series of targeted, beneficial, andforward-looking key projects will be initiated and carried out, effectively advancing the bottom-line andtargeted assistance for the assisted areas so that they can catch up and achieve leapfrog development.A. Enhance industrial assistance and stimulate the development momentum. By virtue of the resourceendowment of the assisted areas and the operational advantages of the Company, the Company willfocus on incorporating agricultural and animal husbandry industries into modernized industrial parks.Our goal is to promote the transformation and high-quality development of modern animal husbandry,tap into and utilize the unique advantages of resources in the assisted villages. It plans to broaden thesales channels of characteristic agricultural and sideline products through bulk purchases, "purchasefor sales" initiatives, and e-commerce platforms, aiming to accelerate the conversion of resourceadvantages into industrial strengths.B. Improve the infrastructure and enhance the living environment. To effectively improve the rural livingenvironment and enhance the happiness index of the people, one of the Company's objectives is tobuild ecologically beautiful and livable villages. In 2024, the plan is to add movable trash bins to theassisted villages, further improving the hygiene of the village environment, beautifying the villageappearance, and cultivating good hygiene habits among the people in Tibetan areas; and the plan alsoincludes upgrading the heating equipment in the assisted villages to help solve the heating problems inthe high-cold environments of the assisted villages.C. Focusing on educational assistance to support students’ growth. The Company will continue to carryout the “Pillar Program – Gratitude and Striving Forward” initiative, granting a scholarship of CNY 5,000to each financially disadvantaged college freshman graduating in 2025 from the assisted villages. Thisinitiative aims to support underprivileged students in their educational journey, address the challenge ofaccess to education, and fundamentally prevent school dropout due to financial hardship.D. Strengthening the talent support and enhancing the vitality of development. Focusing on therequirements of the new era and based on the new stage of development, the Company will continuetransitioning the assistance model toward capacity enhancement, industry-driven, and sustainabledevelopment types. Youth training programs will be conducted according to the needs of characteristicindustries in assisted regions, with the goal of cultivating a dedicated and capable talent team that iswilling to stay and contribute.E. Increase cultural support and enrich the cultural knowledge. To further solidify the ideological andethical standards and build up moral power for rural revitalization, the company will continue to focus onlocal cultural characteristics and the spiritual needs of the masses. It will strongly support the promotionof traditional culture such as Tibetan opera, and support themed events for International Women's Day,and other activities to enrich the cultural life of the masses. These efforts aim to broaden the villagers'horizons, and uplift their spirits.F. Enhance the building of the assistance team to boost rural revitalization. Considering the next stepsin the assistance plan, the Company, guided by the principle of sending people who are needed andsuitable for the task, will select a group of individuals with strong execution abilities, high professionalqualities, and broad expertise to form an assistance team. The Company will ensure that the assistanceinitiative is effectively implemented on the front line, and the role of assistance is well played on thefront line, so as to contribute to the comprehensive revitalization of rural industries, culture, ecosystem,
organizations, and talents.
3.2. The achievements of rural revitalization assistance in 2024
In 2024, the Company fully implemented the decisions and arrangements of the Provincial PartyCommittee and Government as well as the Luzhou Municipal Party Committee and Governmentregarding bottom-line and targeted assistance. Leveraging its advantages in capital, technology, talent,and management, the Company invested a total of CNY 3,543,900 in assistance projects. Over tenhigh-quality projects were carried out focusing on industrial support, educational support, employmentassistance, consumer support, talent development, and the promotion of rural civility, aiming to ensureeffective alignment between poverty alleviation achievements and rural revitalization.First, the Company strengthened organizational leadership to systematically advanceresponsibility fulfillment. Throughout the year, four Party committee meetings were convened tocommunicate and deploy related work, and six special meetings on assistance were held to studyimplementation measures. Tailored plans under the “One Enterprise, One Policy” approach wereformulated, and members of the leadership team conducted eight visits to counties and villages for on-site coordination and research into revitalization paths. Six politically reliable, highly competent, andproactive young employees were assigned to reside in the villages full-time to ensure effectiveimplementation of assistance efforts.Second, the Company focused on industrial upgrading to inject strong momentum intodevelopment. A total of CNY 1,065,000 was invested to support Hongyuan County in establishing the“Yak Grassland Enterprise Store” livestreaming studio on Douyin, where sales during the livestreamexceeded CNY 1 million, effectively boosting the local yak industry. The Company actively carried outbulk procurement and “purchase instead of donation” campaigns, purchasing CNY 1,760,600 worth ofspecialty products such as yak milk powder and yak jerky from Hongyuan County, and CNY 220,000 ofalpine specialty rice from Xiangtian Village. These efforts achieved tangible results in promoting supply-demand linkage and rural revitalization, strengthening collective economies and increasing villagers’income. The Company also continued to deepen the “self-motivation-based” assistance model bydistributing 5,000 charity chicks to Xiangtian Village, helping 294 households increase income byapproximately CNY 500,000.Third, the Company enhanced talent development to accumulate momentum for growth. Toencourage rural students to study diligently, the Company granted a total of CNY 160,000 inscholarships to 32 college freshmen from Guntang Village and Xiangtian Village, helping disadvantagedstudents fulfill their college dreams. The Company launched a “charity teaching support” initiative inXiangtian Village to deliver school uniforms and care packages to underprivileged students, contributingto the prevention of intergenerational poverty transmission. In earnest fulfillment of the key political taskof “preventing dropout and ensuring compulsory education”, the Company invested CNY 266,700 toorganize a summer camp for 32 teachers and students from Hongyuan County. Additionally, CNY100,000 was allocated for a youth talent training program in Hongyuan County, under which expertswere invited to provide e-commerce training and hands-on sessions for over 50 aspiring entrepreneurs,aiming to cultivate a locally rooted, capable, and committed talent pool for the assisted region.Fourth, the Company improved infrastructure to enhance the rural environment. The Companyinvested CNY 80,000 to upgrade and repair the heating facilities and equipment of the Maiwa TownshipGovernment in Hongyuan, providing a comfortable working environment for staff in this alpine region.Additionally, CNY 70,000 was allocated to install nine 2.5-cubic-meter detachable garbage container
boxes in Hongyuan County, thereby facilitating the establishment of a village-wide waste collection andtransportation network and improving the living environment for villagers by making it cleaner, morepleasant, and more comfortable.Fifth, the Company expanded benefit measures to safeguard people’s well-being. The Companyhas always upheld the principle of “I do practical things for the public” as a key guideline in itsassistance work, resolving over twenty urgent and difficult issues for villagers in assisted areas,including medical care and permafrost removal. CNY 50,000 was used to procure high-quality coal fordistribution to 100 households lifted out of poverty, and over CNY 100,000 was spent on distributingNew Year relief packages to more than 400 households, ensuring warmth during winter. The stationedvillage work team actively fulfilled their responsibilities by completing safety inspections for all houses ofpoverty-alleviated households and assisting the village committees in implementing a special winterpipe protection campaign. These efforts helped consolidate the achievements in the “three guarantees”and drinking water safety, ensuring the effective delivery of various benefit measures.Sixth, the Company promoted traditional culture to enhance villagers’ spiritual outlook. TheCompany invested CNY 95,000 to support festival and local cultural activities in Guntang Village, whichhelped promote and pass on intangible cultural heritage such as Baiwang playing and singing andTibetan opera. These efforts actively disseminated traditional rural and Tibetan culture and enriched thecultural and spiritual life of herders.
3.3. Assistance highlights in 2024
A. Promoting industrial training to enhance professional “capabilities”. In accordance with therequirement to “strengthen industry-led support”, the Company invested CNY 100,000 to implement ayouth talent training program in Hongyuan County. By delivering technologies and sharing practicalexperiences, the Company effectively transformed assistance resources into villagers’ capacity for self-driven development, fueling new drivers for industrial revitalization and providing sustainable support forrural revitalization.B. Supporting courtyard farming to enhance the “momentum” for prosperity. At the beginning of the year,the Company distributed 5,000 disease-resistant chicks to nearly 300 low-income households inassisted villages and guided them in scientific farming. At year-end, the Company coordinated with theWumengshan Supply and Marketing Cooperative to purchase the poultry in villages, enabling farmersto increase their income by nearly CNY 500,000. Courtyard farming has become an important meansfor poverty-alleviated households to boost their income and a new growth driver for rural collectiveeconomic development. This has effectively motivated villagers to pursue prosperity and providedstronger “driving power” for rural industrial development.C. Conducting themed education to strengthen “emotional support”. Four “Gratitude and StrivingForward” themed education sessions were held in assisted villages. Through comparisons betweenpast and present, and through showcasing development achievements, these sessions highlighted theresults of regional revitalization, helping villagers deeply appreciate social transformation andgovernment care, and cultivating a sense of gratitude. By uncovering local role models of perseverance,villagers were inspired to cherish development opportunities and transform their gratitude into activeparticipation in residential environment improvement and specialty industry cultivation, thereby buildingconsensus for the revitalization and development of assisted villages.
3.4. Work plan for assistance in 2025
Looking ahead, the Company will firmly regard supporting the revitalization and development ofassisted regions as a significant political responsibility and mission, and will fully implement all tasksrelated to bottom-line and targeted assistance.A. Deepening industrial support to unleash development potential. The Company will adhere to theimplementation of the strategy to “strengthen industry-led support” as the central focus, consistentlytreating industrial development as the key to both development and assistance. The Company willconcentrate on the characteristic and advantageous resources of assisted counties and leverage theCompany’s strengths in business operation and management to promote high-quality development oflocal industries. At the same time, the Company will participate to the fullest extent possible in the“matrix-style” assistance efforts for underdeveloped counties, supporting their accelerated growth.B. Sustaining consumer assistance to broaden income channels. The Company will actively practice itscorporate philosophy of “Baijiu for the World, a Shared Future” by continuing to carry out “bulkprocurement” campaigns and mobilizing upstream and downstream partners to participate in “purchaseinstead of donation” initiatives. Through the purchase of specialty products from underdevelopedcounties, the Company aims to resolve their agricultural product sales challenges and transform localspecialties into income-generating industries for farmers, thereby establishing a key engine forcomprehensive rural revitalization.C. Strengthening talent assistance to boost endogenous momentum. The Company will remaincommitted to providing intellectual support and talent assistance by conducting multi-dimensionalcapacity-building actions such as educational support, talent training, and pairing co-development. Thefocus will shift from one-way input to empowerment-based models, treating local talent cultivation as aneffective approach to improving the quality and capability of assisted regions, and fully reinforcing thetalent foundation for rural revitalization.D. Implementing multiple measures to safeguard people’s well-being. The Company will continue toprioritize livelihood-related assistance as both the starting point and the ultimate goal of ruralrevitalization. Through activities such as joint Party building, visits and condolences, and spiritualcivilization promotion, the Company will implement multi-dimensional and multi-level support measuresto effectively prevent the risk of returning to poverty and improve the quality of life for farmers andherders in underdeveloped counties.
Section VI Significant Events
1. Performance of undertakings
1.1. Undertakings of the Company's actual controller, shareholders, related partiesand acquirer, as well as the Company and other commitment makers fulfilled inthe reporting period or ongoing by the end of this reporting period? Applicable ? N/A
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Other commitments | Laojiao Group | Other commitments | Not to reduce shares of Luzhou Laojiao Co., Ltd. held by us in any way within 12 months from August 25, 2023 | August 25, 2023 | 12 months | Having expired |
| Laojiao Group, and Golden Rudder | Other commitments | Laojiao Group plans to increase its holdings of the Company's shares via its wholly-owned subsidiary Golden Rudder through call auction trading within 6 months from December 15, 2023, with the amount of increase not less than CNY 200 million and not more than CNY 250 million. Laojiao Group and Golden Rudder promise not to reduce their holdings of the Company's shares during the increase period, within the statutory period and before the announcement of the completion of the increase plan, and will complete the implementation of the increase plan within the above implementation period. | December 15, 2023 | 6 months | Having expired | |
| Executed on time or not | Yes | |||||
1.2. Where any earnings forecast was made for any of the Company's assets orprojects and the reporting period is still within the forecast period, the Companyshall explain whether the performance of the asset or project reaches the earningsforecast and reasons? Applicable ? N/A
2. Occupation of the Company's fund by the controlling shareholder orits related parties for non-operating purposes? Applicable ? N/ANo such cases in the reporting period.
3. Irregularities in the provision of guarantees
? Applicable ? N/ANo such cases in the reporting period.
4. Explanation of the board of directors regarding the latest "non-standard audit opinion"? Applicable ? N/A
5. Explanation of the board of directors, the board of supervisors andnon-executive directors (if any) regarding the "non-standard auditopinion" for the reporting period? Applicable ? N/A
6. Reason for changes in accounting policies and accounting estimates,as well as correction of major accounting errors compared to thefinancial report for the prior year
? Applicable □ N/AFor details of changes in accounting policies, please refer to “5.37 Changes in significant accountingpolicies and accounting estimates” in Section X.
7. Reason for changes in scope of the consolidated financial statementscompared to the financial report for the prior year? Applicable □ N/ALuzhou Laojiao Whitail Liquor Industry Co., Ltd., a subsidiary of the Company, was liquidated and de-registered in June 2024. And it has thus been excluded from the consolidated financial statements ofthe Company.
8. Engagement and disengagement of CPA firm
CPA firm at present
| Name of the domestic CPA firm | ShineWing Certified Public Accountants |
| The Company’s payment for the domestic CPA firm (CNY 10,000) | 88 |
| Consecutive years of the audit service provided by the domestic CPA firm | 1 |
| Names of the certified public accountants from the domestic CPA firm | He Jun, Ouyang Lihua |
| Consecutive years of the audit service provided by the certified public accountants | He Jun: 1 year Ouyang Lihua: 1 year |
Whether the CPA firm was changed in the current period? Yes ? No
Whether the CPA firm was changed during the audit? Yes ? No
Whether an approval procedure was executed for the change of CPA firm? Yes ? No
Details of the change of CPA firmIn view of the fact that Sichuan Huaxin (Group) CPA Firm has provided audit services to the Companyfor 26 consecutive years, in order to ensure the independence and objectivity of the audit work, inaccordance with the relevant provisions of the Management Measures for the Appointment ofAccounting Firm by State-owned Enterprises and Listed Companies, upon open bidding, theCompany appointed ShineWing Certified Public Accountants as the 2024 annual financial report andinternal control audit agency.
Engagement of any CPA firm for internal control audit, financial advisor or sponsor? Applicable ? N/AThe Company appointed ShineWing Certified Public Accountants as the internal control auditor forthis year. The remuneration of audit in total paid by the Company was CNY 440 thousand.
9. Possibility of delisting after disclosure of this annual report? Applicable ? N/A
10. Bankruptcy and reorganization
? Applicable ? N/ANo such cases in the reporting period.
11. Material litigation and arbitration
? Applicable ? N/A
| Profile of litigation (arbitration) | Amount involved in the case (CNY 10,000) | Whether it forms an estimate liability | Progress in litigation (arbitration) | Trial results and impacts of litigation (arbitration) | Execution of judgment of litigation (arbitration) | Date of disclosure | Disclosure index |
| The Company filed a lawsuit with ABC Changsha Yingxin Branch over a deposit dispute, and the case has been completed in the first instance of Hunan Province Higher People's Court and the final trial of the Supreme People's Court. The case is now at the stage of enforcement. | 14,942.5 | No | The second trial has been concluded, and the case is now at the stage of enforcement. | For the losses that the Company cannot recover through criminal execution procedures, 40% shall be borne by ABC Changsha Yingxin Branch, 20% shall be borne by ABC Changsha Hongxin Branch and the rest shall be borne by the Company itself. | The Company applied to Hunan Province Higher People's Court for enforcement of the verdict. Hunan Province Higher People's Court ruled that Hunan Changsha Intermediate People’s Court should see to the execution of the verdict. Upon the enforcement, the banks have paid part of the compensations. | October 15, 2014 | See Section VI “Other significant events” |
| The Company filed a lawsuit with ICBC Nanyang Zhongzhou Branch over a deposit dispute, and the case has been completed in the first instance of Henan Province Higher People's Court and the final trial of the Supreme | 15,000 | No | Both the trial and execution have been concluded. | ICBC Nanyang Zhongzhou Branch, ICBC Nanyang Branch, and Sanya Rural Commercial Bank Hongsha Branch shall pay compensations of CNY 75 million, CNY 7.5 million and CNY 6.105 million respectively with the relevant | Upon the bank's voluntary execution and execution by the Nanyang Intermediate People's Court, the Company received a total compensation of CNY 106.1426 million. | January 10, 2015 | See Section VI “Other significant events” |
| People's Court. The case is now concluded and the judgment has been executed. | interest to the Company, and the rest of the loss shall be borne by the Company itself. |
12. Punishments and rectifications
? Applicable ? N/ANo such cases in the reporting period.
13. Credit conditions of the Company as well as its controllingshareholder and actual controller? Applicable ? N/A
14. Significant related party transactions
14.1. Related party transactions arising from routine operation? Applicable ? N/ANo such cases in the reporting period.
14.2. Related party transactions regarding purchase or sales of assets or equityinterests? Applicable ? N/ANo such cases in the reporting period.
14.3. Related party transitions arising from joint investments in external parties
? Applicable ? N/ANo such cases in the reporting period.
14.4. Credits and liabilities with related parties
? Applicable ? N/ANo such cases in the reporting period.
14.5. Transactions with related finance companies
? Applicable ? N/AThe Company did not make deposits in, receive loans or credit from and was not involved in anyother finance business with any related finance company or any of its related parties.
14.6. Transactions between finance companies controlled by the Company andrelated parties? Applicable ? N/ANo related parties made deposits in, received loans or credit from or was involved in any otherfinance business with any finance company controlled by the Company.
14.7. Other significant related party transactions
? Applicable ? N/ANo such cases in the reporting period.
15. Significant contracts and their execution
15.1. Trusteeship, contracting and leasing
15.1.1. Trusteeship
? Applicable ? N/ANo such cases in the reporting period.
15.1.2. Contracting
? Applicable ? N/ANo such cases in the reporting period.
15.1.3. Leasing
? Applicable ? N/ANo such cases in the reporting period.
15.2. Major guarantees
? Applicable ? N/ANo such cases in the reporting period.
15.3. Entrusted cash asset management
15.3.1. Entrusted assets management
? Applicable ? N/AEntrusted assets management during the reporting period
Unit: CNY 10,000
| Type | Fund source for entrusted assets management | Amount of entrusted assets management | Undue balance | Overdue outstanding amount | Impairment allowances for the overdue outstanding amount |
| Wealth management product of securities firm | Own funds | 246,000 | 170,000 | 0 | 0 |
| Total | 246,000 | 170,000 | 0 | 0 | |
Particulars of high risk wealth management products with a significant single amount or low securityor poor liquidity? Applicable ? N/A
Expected inability to recover the principal of entrusted assets management or other circumstancesthat may result in impairment? Applicable ? N/A
15.3.2 Entrust loans
? Applicable ? N/ANo such cases in the reporting period.
15.4. Other significant contracts
? Applicable ? N/ANo such cases in the reporting period.
16. Other significant events
? Applicable ? N/AThe Company disclosed in October 2014 and January 2015 respectively the contract disputesinvolving three savings deposits of CNY 500 million in total with banks including ABC ChangshaYingxin Branch and ICBC Nanyang Zhongzhou Branch. Upon criminal booty recovery, criminal and
civil enforcement, as of the end of the reporting period, the Company had recovered a total amount ofCNY 376 million for the three disputes.
See details in the Company’s announcements:
| Date of announcement | No. | Catalogue | Official website |
| October 15, 2014 | 2014-35 | Announcement of significant litigation | http://www.cninfo.com.cn/ |
| November 12, 2014 | 2014-41 | Announcement of significant litigation progress | |
| December 6, 2014 | 2014-43 | Announcement of significant litigation progress part II | |
| January 10, 2015 | 2015-1 | Announcement of significant events | |
| February 4, 2015 | 2015-4 | Announcement of significant events progress | |
| March 25, 2015 | 2015-11 | Announcement of significant litigation progress part III | |
| April 18, 2015 | 2015-20 | Announcement of significant litigation progress part IV | |
| April 22, 2015 | 2015-21 | Announcement of significant events progress part II | |
| April 24, 2015 | 2015-25 | Announcement of significant litigation progress part V | |
| July 15, 2015 | 2015-44 | Announcement of significant litigation progress part VI | |
| July 22, 2015 | 2015-45 | Announcement of significant litigation progress part VII | |
| June 6, 2018 | 2018-17 | Announcement of significant litigation progress part VIII | |
| May 7, 2019 | 2019-11 | Announcement of significant litigation progress part IX | |
| May 17, 2019 | 2019-13 | Announcement of significant litigation progress part X | |
| March 24, 2020 | 2020-6 | Announcement of significant litigation progress part XI | |
| May 6, 2020 | 2020-14 | Announcement of significant litigation progress part XII | |
| November 7, 2020 | 2020-34 | Announcement of significant litigation progress part XIII | |
| July 6, 2021 | 2021-30 | Announcement of significant litigation progress part XIV | |
| December 15, 2021 | 2021-57 | Announcement of significant litigation progress part XV | |
| December 30, 2021 | 2021-64 | Announcement of significant litigation progress part XVI |
17. Significant events of subsidiaries
? Applicable □ N/AThe Company invested in the technical upgrade program of intelligent brewing (Phase I) with thewholly-owned subsidiary, Brewing Company, as the implementer. The total investment amountapproximated CNY 4,782.5090 million. For further information, see Announcement No. 2022-24 onthe Implementation of Luzhou Laojiao’s Technical Upgrade Program of Intelligent Brewing (Phase I)by Subsidiary. The program is currently under construction.
Section VII Changes in Shares and Information about
Shareholders
1. Changes in shares
1.1 Changes in shares
Unit：Share
| Before | Changes in this year (＋，－) | After | |||||||
| Number | Proportion | Issuance of new shares | Bonus shares | Capitalization of capital reserves | Other | Subtotal | Number | Proportion | |
| I. Restricted shares | 7,468,589 | 0.51% | -2,818,630 | -2,818,630 | 4,649,959 | 0.32% | |||
| 1. Shares held by the state | |||||||||
| 2. Shares held by state-owned corporations | |||||||||
| 3. Shares held by other domestic investors | 7,468,589 | 0.51% | -2,818,630 | -2,818,630 | 4,649,959 | 0.32% | |||
| Of which: shares held by domestic corporations | |||||||||
| Shares held by domestic individuals | 7,468,589 | 0.51% | -2,818,630 | -2,818,630 | 4,649,959 | 0.32% | |||
| 4. Shares held by foreign corporations | |||||||||
| Of which: shares held by foreign corporations | |||||||||
| Shares held by foreign individuals | |||||||||
| II. Non-restricted shares | 1,464,519,180 | 99.49% | 2,782,364 | 2,782,364 | 1,467,301,544 | 99.68% | |||
| 1.CNY common shares | 1,464,519,180 | 99.49% | 2,782,364 | 2,782,364 | 1,467,301,544 | 99.68% | |||
| 2. Domestically listed foreign shares | |||||||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Other | |||||||||
| III. Total shares | 1,471,987,769 | 100.00% | -36,266 | -36,266 | 1,471,951,503 | 100.00% |
Reasons for the change in shares? Applicable □ N/AA. On January 23, 2024, the Company held the 38th Meeting of the 10th Board of Directors and the20th Meeting of the 10th Board of Supervisors, at which the Proposal on the Satisfaction of UnlockingConditions for the First Unlocking Period of the 2021 Restricted Share Incentive Plan was reviewedand approved. As such, 2,734,640 restricted shares of 435 awardees that satisfied the unlockingconditions for the first unlocking period of the 2021 Restricted Share Incentive Plan were allowed forpublic trading on February 22, 2024. On September 23, 2024, the Company held the Fourth Meetingof the 11th Board of Directors and the Third Meeting of the 11th Board of Supervisors, at which theProposal on the Satisfaction of Unlocking Conditions for the First Unlocking Period of the ReservedRestricted Shares under the 2021 Restricted Share Incentive Plan was reviewed and approved. Assuch, 134,534 reserved restricted shares of 45 awardees that satisfied the unlocking conditions forthe first unlocking period of the 2021 Restricted Share Incentive Plan were allowed for public tradingon October 9, 2024.B. On January 23, 2024, the Company held the 38th Meeting of the 10th Board of Directors and the20th Meeting of the 10th Board of Supervisors, at which the Proposal on the Repurchase andRetirement of Certain Restricted Shares and the Adjustment of Repurchase Price was reviewed andapproved. As three awardees were no longer eligible for the incentives, the Company decided torepurchase and retire a total of 15,266 restricted shares that had been granted to the aforesaidawardees but remained in lockup. On June 4, 2024, the Proposal on the Repurchase and Retirementof Certain Restricted Shares was approved at the 40th Meeting of the 10th Board of Directors and the22nd Meeting of the Board of Supervisors, respectively. As one awardee was no longer eligible for theincentives, the Company decided to repurchase and retire a total of 6,000 restricted shares that hadbeen granted to the aforesaid awardee but remained in lockup. The repurchase and retirement of theaforesaid shares was completed on August 14, 2024. On September 23, 2024, the Company held theFourth Meeting of the 11th Board of Directors and the Third Meeting of the 11th Board of Supervisors,at which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and theAdjustment of Repurchase Price was reviewed and approved. As one awardee was no longer eligiblefor the incentives, the Company decided to repurchase and retire a total of 15,000 restricted sharesthat had been granted to the aforesaid awardee but remained in lockup. The repurchase andretirement of the aforesaid shares was completed on December 18, 2024.C. During the reporting period, due to the unlocking of restricted shares under the restricted shareincentive plan, locked shares of the Company’s senior management increased by 98,130 shares.D. During the reporting period, 11,320 locked shares of Shen Caihong, a member of the Company’ssenior management, were unlocked.
Approval of share changes
? Applicable □ N/AOn January 23, 2024, the Company held the 38th Meeting of the 10th Board of Directors and the 20thMeeting of the 10th Board of Supervisors, at which the Proposal on the Repurchase and Retirementof Certain Restricted Shares and the Adjustment of Repurchase Price was reviewed and approved.As three awardees were no longer eligible for the incentives, the Company decided to repurchaseand retire a total of 15,266 restricted shares that had been granted to the aforesaid awardees butremained in lockup. On June 4, 2024, the Proposal on the Repurchase and Retirement of CertainRestricted Shares was approved at the 40th Meeting of the 10th Board of Directors and the 22ndMeeting of the Board of Supervisors, respectively. As one awardee was no longer eligible for theincentives, the Company decided to repurchase and retire a total of 6,000 restricted shares that hadbeen granted to the aforesaid awardee but remained in lockup. The repurchase and retirement of theaforesaid shares was completed on August 14, 2024. On September 23, 2024, the Company held theFourth Meeting of the 11th Board of Directors and the Third Meeting of the 11th Board of Supervisors,at which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and theAdjustment of Repurchase Price was reviewed and approved. As one awardee was no longer eligiblefor the incentives, the Company decided to repurchase and retire a total of 15,000 restricted sharesthat had been granted to the aforesaid awardee but remained in lockup. The repurchase andretirement of the aforesaid shares was completed on December 18, 2024. Upon the above-mentionedrepurchases and retirements, the total share capital of the Company decreased to 1,471,951,503shares from 1,471,987,769.
Transfer of share ownership? Applicable ? N/A
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable tocommon shareholders of the Company and other financial indexes over the last year and the lastreporting period? Applicable ? N/A
Other contents that the Company considers it necessary or required by the securities regulatoryauthorities to disclose? Applicable ? N/A
1.2 Changes in restricted shares
? Applicable □ N/A
Unit: Share
| Name of shareholder | Number of restricted shares held at the beginning of the reporting period | Increase in restricted shares during the reporting period | Decrease in restricted shares during the reporting period | Number of restricted shares held at the end of the reporting period | Reason for restriction | Date of unlocking |
| 2021 Restricted Share Incentive Plan | 7,235,293 | -36,266 | 2,869,174 | 4,329,853 | Restricted shares under the 2021 Restricted Share Incentive Plan | In accordance with the relevant unlocking provisions of the 2021 Restricted Share Incentive Plan |
| Locked shares of senior management | 233,296 | 98,130 | 11,320 | 320,106 | Locked shares of senior management converted from unlocked restricted shares under the 2021 Restricted Share Incentive Plan | In accordance with the relevant unlocking provisions of the 2021 Restricted Share Incentive Plan |
| Total | 7,468,589 | 61,864 | 2,880,494 | 4,649,959 | -- | -- |
2. Issuance and listing of securities
2.1 Securities (excluding preferred shares) issued in the reporting period
□ Applicable ? N/A
2.2 Changes in total shares of the Company and the shareholder structure, as wellas the asset and liability structure
? Applicable □ N/ADuring the reporting period, the total share capital of the Company decreased to 1,471,951,503 sharesfrom 1,471,987,769 due to the repurchase and retirement of certain restricted shares.
2.3 Existing staff-held shares
□ Applicable ? N/A
3. Shareholders and actual controller
3.1 Total number of shareholders and their shareholdings
Unit: Share
| Total number of common shareholders at the end of the reporting period | 210,742 | Total number of common shareholders at the prior month-end before the disclosure date of the annual report | 180,122 | Total number of preferred shareholders with resumed voting rights by the end of the reporting period (if any)(see Note 8) | 0 | Total number of preferred shareholders with resumed voting rights by the end of the reporting period (if any)(see Note 8) | 0 | |
| Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders (exclusive of shares lent in refinancing) | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held by the end of the reporting period | Increase/decrease during the reporting period | Number of holding restricted shares | Number of holding non-restricted shares | Pledged, marked or frozen shares | |
| Status of shares | Number of shares | |||||||
| Luzhou Laojiao Group Co., Ltd. | State-owned corporation | 25.89% | 381,088,389 | 0 | 0 | 381,088,389 | N/A | 0 |
| Luzhou XingLu Investment Group Co., Ltd. | State-owned corporation | 24.86% | 365,971,142 | 0 | 0 | 365,971,142 | N/A | 0 |
| Bank of China Co., Ltd. – Baijiu index classification securities investment fund by China Merchants Fund | Other | 3.45% | 50,835,769 | 7,818,790.00 | 0 | 50,835,769 | N/A | 0 |
| Hong Kong Securities Clearing Company Limited | Outbound corporation | 2.44% | 35,913,646 | -11,577,615.00 | 0 | 35,913,646 | N/A | 0 |
| China Securities Finance Corporation Limited | Other | 2.30% | 33,842,059 | 0 | 0 | 33,842,059 | N/A | 0 |
| Bank of | Other | 1.51% | 22,250,000 | 780,000.00 | 0 | 22,250,000 | N/A | 0 |
| China Co., Ltd.－Blue chip selected hybrid securities investment fund by E Fund | ||||||||
| Central Huijin Asset Management Co., Ltd. | State-owned corporation | 0.92% | 13,539,862 | 0 | 0 | 13,539,862 | N/A | 0 |
| Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund | Other | 0.87% | 12,761,135 | 7,350,600.00 | 0 | 12,761,135 | N/A | 0 |
| Industrial and Commercial Bank of China Co., Ltd.-Newly growth hybrid securities investment fund by Invesco Great Wall | Other | 0.85% | 12,550,000 | -1,048,087.00 | 0 | 12,550,000 | N/A | 0 |
| China Construction Bank Corporation－Penghua Wine & Liquor Exchange-Traded Fund | Other | 0.68% | 10,007,720 | 2,204,771.00 | 0 | 10,007,720 | N/A | 0 |
| Strategic investors or general corporations become the top-ten shareholders due to placing of new shares (if any) (see note 3) | N/A | |||||||
| Related parties or acting-in-concert | 1. Luzhou Laojiao Group Co., Ltd. and Luzhou XingLu Investment Group Co., Ltd. are both holding state-owned companies under the jurisdiction of SASAC of Luzhou. The two companies signed the agreement of persons acting in concert on December 31, 2015 and the renewed agreement of persons acting in concert on May 27, 2021. For details, please refer to the announcement of the Company on January 5, 2016 - | |||||||
| Announcement on the Agreement of Persons Acting in Concert Signed by Shareholders (Announcement No. 2016-1) and the announcement of the Company on May 29, 2021 - Announcement on the Renewed Agreement of Persons Acting in Concert Signed by Shareholders (Announcement No. 2021-18). The two companies signed the renewed agreement of persons acting in concert again on May 23, 2024. For details, please refer to the announcement of the Company on May 23, 2024 - Announcement on the Renewed Agreement of Persons Acting in Concert Signed by Shareholders (Announcement No. 2024-22). 2. During the reporting period, Luzhou Laojiao Group Co., Ltd., through its wholly-owned subsidiary Golden Rudder, increased its holdings in the Company by 1,140,200 shares through call auction trading, accounting for 0.08% of the total share capital of the Company. By the end of the reporting period, Luzhou Laojiao Group Co., Ltd. and Golden Rudder collectively held 382,228,589 shares in the Company, representing 25.97% of the total share capital of the Company. 3. In addition, whether there is an association between the remaining shareholders or they belong to persons acting in concert is unknown. | |||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | N/A | ||
| Special account for repurchased shares among the top 10 shareholders (if any) (see note 10) | N/A | ||
| Shareholdings of the top 10 non-restricted shareholders (exclusive of shares lent in refinancing and locked shares of senior management) | |||
| Name of shareholder | Number of non-restricted shares held by the end of the reporting period | Type of shares | |
| Type | Number | ||
| Luzhou Laojiao Group Co., Ltd. | 381,088,389 | CNY common shares | 381,088,389 |
| Luzhou XingLu Investment Group Co., Ltd. | 365,971,142 | CNY common shares | 365,971,142 |
| Bank of China Co., Ltd. – Baijiu index classification securities investment fund by China Merchants Fund | 50,835,769 | CNY common shares | 50,835,769 |
| Hong Kong Securities Clearing Company Limited | 35,913,646 | CNY common shares | 35,913,646 |
| China Securities Finance Corporation Limited | 33,842,059 | CNY common shares | 33,842,059 |
| Bank of China Co., Ltd.－Blue chip selected hybrid securities investment fund by E Fund | 22,250,000 | CNY common shares | 22,250,000 |
| Central Huijin Asset Management Co., Ltd. | 13,539,862 | CNY common shares | 13,539,862 |
| Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund | 12,761,135 | CNY common shares | 12,761,135 |
| Industrial and Commercial Bank of China Co., Ltd.-Newly growth hybrid securities investment fund | 12,550,000 | CNY common shares | 12,550,000 |
| by Invesco Great Wall | |||
| China Construction Bank Corporation－Penghua Wine & Liquor Exchange-Traded Fund | 10,007,720 | CNY common shares | 10,007,720 |
| The statement of association or acting-in-concert between the top 10 shareholders of unrestricted shares and between the top 10 shareholders of unrestricted shares and top 10 shareholders | See the upper part of this table | ||
| Top 10 common shareholders participating in securities margin trading (if any) (see note 4) | 1. During the reporting period, Bank of China Co., Ltd. – Baijiu index classification securities investment fund by China Merchants Fund, Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund, and China Construction Bank Corporation－Penghua Wine & Liquor Exchange-Traded Fund among the Company’s top 10 common shareholders participated in securities refinancing, with details in the table below. 2. Save as disclosed above, as of the end of the reporting period, no other top 10 common shareholders of the Company participated in securities margin trading. | ||
5% or greater shareholders, top 10 shareholders and top 10 non-restricted shareholders involved inrefinancing shares lending? Applicable □ N/A
Unit: Share
| 5% or greater shareholders, top 10 shareholders and top 10 non-restricted shareholders involved in refinancing shares lending | ||||||||
| Full name of shareholder | Shares in the common account and credit account at the period-begin | Shares lent in refinancing and not yet returned at the period-begin | Shares in the common account and credit account at the period-end | Shares lent in refinancing and not yet returned at the period-end | ||||
| Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | |
| Bank of China Co., Ltd. – Baijiu index classification securities investment fund by China Merchants Fund | 43,016,979.00 | 2.92% | 55,000.00 | 0.00% | 50,835,769.00 | 3.45% | 0.00 | 0.00% |
| Industrial and Commercial Bank of China Co., Ltd.- Huatai- | 5,410,535.00 | 0.37% | 3,700.00 | 0.00% | 12,761,135.00 | 0.87% | 0.00 | 0.00% |
| Pinebridge CSI 300 Exchange-Traded Fund | ||||||||
| China Construction Bank Corporation－Penghua Wine & Liquor Exchange-Traded Fund | 7,802,949.00 | 0.53% | 181,800.00 | 0.01% | 10,007,720.00 | 0.68% | 0.00 | 0.00% |
Changes in top 10 shareholders and top 10 non-restricted shareholders due to refinancing shareslending/return compared with the prior period
□ Applicable ? N/A
Did any of the top 10 common shareholders or the top non-restricted common shareholders of theCompany conduct any promissory repurchase during the reporting period.? Yes ? NoThe top 10 non-restricted common shareholders, the top 10 common shareholders did not conductany promissory repurchase during the reporting period.
3.2 Controlling shareholder
Nature of controlling shareholder：Local state-ownedType of controlling shareholder：Corporation
| Name of controlling shareholder | Legal representative/Company principal | Date of establishment | Credibility code | Main business scope |
| Luzhou Laojiao Group Co., Ltd. | Liu Miao | December 21, 2000 | 91510500723203346 | General project: Social economy consulting services; business management consulting; financial consulting; business headquarters management; import and export agency; trade brokerage; crops planting services; trees planting operation; elder care services; tourism development project planning and consulting; technical agency services; engineering and technological research |
| and experimental development; display device manufacturing; supply chain management services; technical services, technical development, technical consulting, technical communication, technical transfer, and technical promotion; domestic freight transport agency; equity fund-invested asset management services; passenger ticket agent; and business agency service. It shall also include licensed projects (business activities can be carried out legally and independently with business license in addition to projects that must be approved by law): Agency bookkeeping; career intermediary activities; food production; food sales; and medical services. (business activities that require approval in accordance with laws can be carried out upon approval of relevant authorities, and the specific business projects shall be subject to the approval document or license of relevant departments) | ||
| Shareholdings of the controlling shareholder in other controlled or non-controlled listed companies at home or abroad during the reporting period | 1. As of June 30, 2024, Laojiao Group holds 70,406,310 shares of Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), accounting for 8.19% of the total issued shares. 2. As of September 30, 2024, Laojiao Group holds 212,954,666 shares of Hongli Zhihui Group Co., Ltd. (300219.SZ) through its wholly-owned subsidiary, Golden Rudder, accounting for 30.08% of the total issued shares. 3. As of September 30, 2024, Laojiao Group holds 475,940,143 shares of Huaxi Securities Co., Ltd. (002926.SZ), accounting for 18.13% of the total issued shares. 4. As of June 30, 2024, Laojiao Group holds 390,528,000 shares of Luzhou Bank (01983.HK), accounting for 14.37% of the total issued shares. | |
Change of the controlling shareholder during the reporting period
□ Applicable ? N/A
No such cases in the reporting period
3.3 Actual controller and its persons acting in concert
Nature of actual controller：Local State-owned Assets Supervision and Administration CommissionType of actual controller：Corporation
| Name of actual controller | Legal representative/Company principal | Date of establishment | Credibility code | Main business scope |
| SASAC of Luzhou | Zhang Xuebin | March 1, 2005 | 11510400771686813T | State-owned assets supervision and administration department |
| Share holdings of the controlling shareholder in other controlled or non-controlled listed companies at home or abroad during the reporting period. | 1. As of June 30, 2024, Luzhou XingLu Asset Management Co., Ltd., a controlled subsidiary of XingLu Group (a controlled subsidiary of SASAC of Luzhou), holds 511,654,127 shares of Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), accounting for 59.51% of the total issued shares. Luzhou Infrastructure Construction Investment Co., Ltd., a holding subsidiary of XingLu Group, holds 62,709,563 shares of Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), and accounting for 7.29% of the total issued shares. Laojiao Group, a controlled subsidiary under SASAC of Luzhou, holds 70,406,310 shares of Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), accounting for 8.19% of the total issued shares. 2. As of September 30, 2024, Laojiao Group holds 212,954,666 shares of Hongli Zhihui Group Co., Ltd. (300219.SZ) through its controlled subsidiary, Golden Rudder, accounting for 30.08% of the total shares issued. 3. As of March 25, 2025, Luzhou Industrial Investment Group Co., Ltd., a holding Company under the jurisdiction of SASAC of Luzhou, holds 195,110,310 shares of Sichuan Lutianhua Company Limited (000912.SZ), accounting for 12.44% of the total shares issued. Lutianhua Group Company Limited, a wholly-owned subsidiary of Luzhou Industrial Investment Group Co., Ltd., holds 236,550,393 shares of Sichuan Lutianhua Company Limited (000912.SZ), and accounting for 15.09% of the total issued shares. 4. As of September 30, 2024, Laojiao Group, a controlled subsidiary under SASAC of Luzhou, holds 475,940,143 shares of Huaxi Securities Co., Ltd. (002926.SZ), accounting for 18.13% of the total issued shares. 5. As of June 30, 2024, Laojiao Group, a controlled subsidiary under SASAC of Luzhou, holds 390,528,000 shares of Luzhou Bank (01983.HK), accounting for 14.37% of the total issued shares. Luzhou State-Owned Assets Management Co., Ltd., a controlled subsidiary under SASAC of Luzhou, holds 173,568,000 shares of Luzhou Bank (01983.HK), accounting for 6.39% of the total issued shares. XingLu Group, a controlled subsidiary under SASAC of Luzhou, holds 62,154,702 shares of Luzhou Bank (01983.HK), accounting for 2.29% of the total issued shares. | |||
Change of the actual controller during the reporting period
□ Applicable ? N/A
The actual controller of the Company has not changed during the reporting period.
Ownership and control relations between the actual controller and the Company
The actual controller control the company through a trust or other ways of assets management
□ Applicable ? N/A
3.4 Number of accumulative pledged shares held by the company’s controllingshareholder or the largest shareholder as well as its acting-in-concert partiesaccounts for 80% of all shares of the company held by them
□ Applicable ? N/A
3.5 Other corporate shareholders with a shareholding proportion over 10%
? Applicable □ N/A
| Name of corporate shareholder | Legal representative/Company principal | Date of establishment | Registered capital (CNY) | Main business scope |
| Luzhou XingLu Investment Group Co., Ltd. | Dai Zhiwei | January 28, 2003 | 4,934,049,244 | Investment and asset management; project management services; self-finance real estate business |
State-owned Assets Supervision andAdministration Commission of Luzhou
State-owned Assets Supervision andAdministration Commission of LuzhouLuzhou Development Holdings
Group Co., Ltd.
Luzhou Development Holdings
Group Co., Ltd.Luzhou LaojiaoGroup Co., Ltd.
| Luzhou Laojiao Group Co., Ltd. | Luzhou XingLu Investment Group Co., Ltd. |
Sichuan Golden RudderInvestment Co., Ltd.
Sichuan Golden RudderInvestment Co., Ltd.
Luzhou Laojiao
Co., Ltd.
activities; investmentadvisory servicesand financialadvisory services(excluding suchfinancial activities asillegal capital raisingand collecting publicfunds) (businessactivities that requireapproval inaccordance with lawscan be carried outupon approval ofrelevant authorities)
3.6 Limits on reduction of the Company’s shares held by its controlling shareholder,actual controller, restructuring party and other commitment entities.
□ Applicable ? N/A
4. Specific implementation of share repurchase during the reportingperiodImplementation progress of shares repurchases
□ Applicable ? N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable ? N/A
Section VIII Preferred Shares
□ Applicable ? N/A
No preferred stock in the Company during the reporting period.
Section IX Information about Bond? Applicable ? N/A
1. Enterprise bonds
? Applicable ? N/ANo such cases in the reporting period.
2. Corporate bonds
? Applicable ? N/A
2.1. Basic information about the corporate bond
Unit: CNY 10,000
| Name | Abbr. | Code | Issue date | Value date | Due date | Bond balance | Interest rate | Way of redemption | Place of trading |
| 2020 Public Offering of Corporate Bond for Qualified Investors (Phase I) | 20 Lao Jiao 01 | 149062.SZ | 16 March 2020 | 17 March 2020 | 17 March 2025 | 150,000 | 3.50% | In terms of the bonds of this phase, interests will be paid by year and the principal will be repaid in lump sum at maturity. The interests will be paid once every | Shenzhen Stock Exchange |
| year and the interests for the last installment will be paid together with the principal. | |||
| Appropriate arrangement of the investors (if any) | The bonds are applicable to eligible investors who have qualified securities accounts with Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., are permitted to engage in the subscription and transfer of corporate bonds in accordance with the Management Measures for the Issue and Transaction Management of Corporate Bonds, Management Measures for the Suitability of Securities and Futures Investors, Management Measures of Shenzhen Stock Exchange for the Suitability of Securities Market Investors, and relevant laws and regulations, and have the corresponding risk identification and bearing capacity (excluding those prohibited by laws and regulations) | ||
| Trading systems applicable | Tradable by way of bidding, offering, inquiry and agreement | ||
| Risk of termination of listing and trading (if any) and countermeasures | N/A | ||
Overdue bonds
□ Applicable ? N/A
2.2. Triggering and execution of issuer or investor option clauses and investorprotection clauses
□ Applicable ? N/A
2.3. Information about the intermediaries
| Bond | Intermediary | Office address | Signature accountant | Contact person of intermediary | Contact number |
| 2020 Public Offering of Corporate Bond for Qualified Investors (Phase I) | China International Capital Corporation Limited. | 33rd Floor, China World Office 2, No. 1 Jianguomenwai Avenue, Chaoyang District, Beijing | N/A | Qi Qin | (010)65051166 |
| 2020 Public Offering of Corporate Bond for Qualified Investors (Phase I) | China Chengxin International Credit Rating Co., Ltd. | Building 6, Galaxy SOHO, No.2 Nanzhugan hutong, Chaoyangmennei Avenue, Dongcheng District, Beijing | N/A | Liang Ziqiu | (027)87339288 |
Indicate by tick mark whether above intermediaries changed in the reporting period
□Yes ? No
2.4. List of the usage of the raised funds
Unit: CNY 10,000
| Bond code | Bond abbreviation | Total amount | Stated purpose | Amount spent | Actual use of raised funds (classified by purpose, excluding temporary replenishment of working capital) | Actual use of raised funds by purpose | Unused amount | Operation of special account for raised funds (if any) | Rectification of raised funds for violation operation (if any) | Whether is consistent with the usage, using plan and other agreements stipulated in the raising specification |
| 149062.SZ | 20 Laojiao 01 | 150,000 | Used for the Technical Renovation Project of Brewing (Phase II), the Project of Intelligent Upgrading and Building of the Information Management System, the Project of Acquiring Sealing Equipment for the Cellar of Huangyi Brewing Base, and the Project of Acquiring Accessory | 136,444.23 | Used for the construction and operation of physical projects | Used for the Technical Renovation Project of Brewing (Phase II), the Project of Intelligent Upgrading and Building of the Information Management System, the Project of Acquiring Sealing Equipment for the Cellar of Huangyi Brewing Base, and the Project of Acquiring Accessory | 21,099.08 | The Company has set up a special account to deposit the funds raised and has signed a fund account supervision agreement to clarify it. The special account for fund raising was operating normally during the reporting period. | None | Yes |
| Equipment for Leaven Making for Huangyi Brewing Base | Equipment for Leaven Making for Huangyi Brewing Base |
The raised funds were used for construction project? Applicable □ N/A
| Bond code | Bond abbreviation | Project progress and operational benefits | Whether there were any major changes in the project during the reporting period that may affect the investment and use plan of the raised funds | Project changes and procedure implementation | Whether the net income of the project during the reporting period has decreased by more than 50% compared with the disclosure in the prospectus, or whether other major adverse changes that may affect the project's operating efficiency have occurred during the reporting period | Changes in the project's net income and impact on the issuer's solvency and investors' equity, and countermeasures |
| 149062.SZ | 20 Laojiao 01 | See “7.5. Use of funds raised” in Section III | No | N/A | No | N/A |
The Company changed the usage of above funds raised from bonds during the reporting period.
□ Applicable ? N/A
2.5. Changes in credit ratings in the reporting period
□ Applicable ? N/A
2.6. Execution and changes with respect to guarantees, repayment plans and otherrepayment-ensuring measures in the reporting period, as well as the impact on theinterests of bond holders
□ Applicable ? N/A
3. Debt instruments as a non-financial enterprise
□ Applicable ? N/A
No such cases in the reporting period.
4. Convertible corporate bonds
□ Applicable ? N/A
No such cases in the reporting period.
5. Consolidated loss of the reporting period over 10% of net assets as atthe end of last year
□ Applicable ? N/A
6. Matured interest-bearing debt excluding bonds up the period-end
□ Applicable ? N/A
7. Whether there was any violation of rules and regulations during thereporting period
□ Yes ? No
8. The major accounting data and the financial indicators of the recent2 years of the company as of the end of the reporting period
Unit: CNY 10,000
| Item | December 31, 2024 | December 31, 2023 | Change |
| Current ratio | 3.56 | 4.50 | -20.89% |
| Debt/asset ratio | 30.48% | 34.38% | -3.90% |
| Quick ratio | 2.60 | 3.31 | -21.45% |
| 2024 | 2023 | Change | |
| Net profits before non-recurring gains and losses | 1,339,951.47 | 1,315,039.28 | 1.89% |
| EBITDA/debt ratio | 201.87% | 163.53% | 38.34% |
| Interest cover (times) | 60.60 | 37.49 | 61.64% |
| EBITDA-to-interest cover (times) | 63.32 | 38.87 | 62.90% |
Section X Financial Report
1. Auditor’s report
| Type of audit report | Standard without reserved opinion |
| Signing date of auditor’s report | April 24, 2025 |
| Name of Audit | ShineWing Certified Public Accountants |
| No. of auditor’s report | XYZH/2025CDAA7B0258 |
| Names of auditors | He Jun, Ouyang Lihua |
Auditor’s Report
To the shareholders of Luzhou Laojiao Co., Ltd.:
OpinionWe have audited the financial statements of Luzhou Laojiao Co., Ltd. (hereinafter referred to as the“Company”), which comprise the consolidated balance sheet and balance sheet as at December 31,2024, consolidated income statement and income statement, consolidated cash flow statement andcash flow statement, consolidated statement of changes in owners' equity and statement of changes inowners' equity for the year then ended; and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordancewith Accounting Standards for Business Enterprises and present fairly the financial position of thecompany as at December 31, 2024 and its operating results and cash flow for the year then ended.
Basis for opinionWe conducted our audit in accordance with China Standards on Auditing (“CSAs”) for Certified PublicAccountants. Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of professional ethics for Certified Public Accountants inChina (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed inthe context of our audit of the consolidated financial statements as a whole and, in forming our opinionthereon, and we do not provide a separate opinion on these matters.
Other informationThe directors of the Company are responsible for the other information. The other informationcomprises the information included in the annual report, but does not include the financial statementsand our auditor’s report thereon.
| 1. Existence and completeness of cash and cash equivalents | |
| Key audit matter | Audit response |
| As of December 31, 2024, the cash and cash equivalent balance of Luzhou Laojiao was CNY 33,578,396,800, accounting for 49.14% of total assets. Given the significant balance and the large number of bank accounts, the security of deposits as well as the accuracy and completeness of balances have a material impact on the financial statements. Therefore, we identified the existence and completeness of cash and cash equivalents as a key audit matter. Please refer to Item 5.1 under “5. Notes to the main items of the consolidated financial statements” in the notes to the financial statements. | We performed the following audit procedures in response to the existence and completeness of cash and cash equivalents: 1. Understood, tested, and evaluated internal controls related to monetary fund management; 2. Obtained a list of all bank accounts opened and compared it with Luzhou Laojiao’s accounting records to verify the completeness of bank accounts; 3. Obtained bank statements and bank reconciliation statements, conducted bank confirmations, and controlled the confirmation process; 4. Performed inventory count procedures on time deposits and reviewed details such as the holder of the time deposits; 5. Obtained the enterprise credit report to examine whether there were any pledges, mortgages, or guarantees related to cash and cash equivalents; 6. Examined the accuracy and completeness of disclosures regarding cash and cash equivalent balances and restrictions. |
| 2. Recognition of operating revenue | |
| Key audit matter | Audit response |
| Luzhou Laojiao’s operating revenue for 2024 amounted to CNY 31,196,248,200, which was the main source of the Company’s operating profit and a key performance indicator. Therefore, we identified revenue recognition as a key audit matter. Please refer to Item 3.31 under “3. Significant accounting policies and accounting estimates” and Item 5.38 under “5. Notes to the main items of the consolidated financial statements” in the notes to the financial statements. | We performed the following key audit procedures in relation to the recognition of operating revenue: 1. Understood, tested, and evaluated the design and implementation effectiveness of internal controls over the sales and collection cycle; 2. Inspected a sample of sales contracts to identify rights and obligations, evaluated the timing of performance obligations, and assessed whether management’s judgments regarding the transfer of control complied with the Accounting Standards for Business Enterprises and the Company’s accounting policies; 3. Performed analytical review procedures, comparing current year sales volume, unit price, gross margin, and key customer metrics with prior-year data to identify significant changes and assess their reasonableness; 4. Performed substantive testing on a sample of recorded operating revenue transactions for the year, inspecting supporting documents such as sales contracts or orders, warehouse dispatch orders, delivery notes, customer acknowledgments, sales invoices, and reconciliation statements to assess the authenticity and accuracy of revenue recognition; 5. Selected samples of sales transactions occurring near year-end and inspected relevant supporting documents (including delivery notes or documents confirming customer receipt) to evaluate whether revenue was recognized in the appropriate accounting period; 6. In conjunction with contract liability audits, conducted confirmation procedures with a sample of major distributors to confirm revenue amounts and contract liability balances, validating the authenticity and accuracy of revenue recognized by management; 7. Performed site visits to a sample of major distributors. |
Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.
If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of directors and those charged with governance for the financial statementsThe directors of the Company are responsible for the preparation of the financial statements that give atrue and fair view in accordance with the disclosure requirements of Accounting Standards for BusinessEnterprises, and designing, implementing and maintaining internal control that is necessary to ensurethe financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concern and usingthe going concern basis of accounting unless the directors either intend to liquidate the Company or tocease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reportingprocess.
Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken onthe basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud mayinvolve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the directors.
(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern. Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor’s reportto the related disclosures in the financial statements or, if such disclosures are inadequate, to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Company to cease to continue as a goingconcern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide the governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.
From the matters communicated with the governance, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements of the current period and are thereforethe key audit matters. We describe these matters in our auditor’s report unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances, we determinethat a matter should not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of such communication.
ShineWing Certified Public Accountants Chinese CPA: He Jun
(Engagement Partner)Beijing, China Chinese CPA: Ouyang Lihua
April 24, 2025
2. Financial statements
Monetary unit for the financial statements and the notes thereto: CNYPrepared by: Luzhou Laojiao Co., Ltd.
Consolidated balance sheetAs at December 31, 2024
Unit: CNY
| Item | Balance as at December 31, 2024 | Balance as at January 1, 2024 |
| Current assets: | ||
| Cash and cash equivalents | 33,578,396,831.33 | 25,952,025,091.28 |
| Settlement reserves | ||
| Lending funds | ||
| Held-for-trading financial assets | 1,694,282,295.97 | 1,426,992,098.83 |
| Derivative financial assets | ||
| Notes receivables | ||
| Accounts receivables | 11,022,302.31 | 17,461,378.98 |
| Accounts receivables financing | 1,801,947,455.78 | 5,938,171,007.93 |
| Prepayment | 123,870,282.65 | 202,309,186.70 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve | ||
| Other receivables | 13,053,645.00 | 22,716,893.12 |
| Including：Interests receivable | ||
| Dividends receivable |
| Buying back the sale of financial assets | ||
| Inventories | 13,392,794,475.96 | 11,622,043,947.46 |
| Including：Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 241,081,908.89 | 176,684,731.97 |
| Total current assets | 50,856,449,197.89 | 45,358,404,336.27 |
| Non-current assets: | ||
| Disbursement of loans and advances | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 2,801,252,317.93 | 2,708,254,833.50 |
| Investments in other equity instruments | 407,194,706.55 | 402,893,468.80 |
| Other non-current financial assets | ||
| Investment property | 50,246,694.16 | 37,785,416.77 |
| Fixed assets | 9,131,776,915.51 | 8,613,223,465.46 |
| Construction in progress | 807,233,988.90 | 1,718,468,880.53 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Use right assets | 29,254,214.23 | 23,260,955.23 |
| Intangible assets | 3,417,898,796.19 | 3,397,873,791.08 |
| Including：Data resources | ||
| Development expenses | ||
| Including：Data resources | ||
| Goodwill | ||
| Long-term deferred expenses | 1,756,272.03 | 960,005.91 |
| Deferred tax assets | 424,185,093.04 | 674,429,617.92 |
| Other non-current assets | 407,347,368.15 | 358,900,430.13 |
| Total non-current assets | 17,478,146,366.69 | 17,936,050,865.33 |
| Total assets | 68,334,595,564.58 | 63,294,455,201.60 |
| Current liabilities: | ||
| Short-term loans | ||
| Borrowings from the central bank | ||
| Loans from other banks | ||
| Held-for-trading financial liabilities | 9,763.87 | |
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 1,844,497,206.78 | 2,357,223,733.21 |
| Advance from customer | ||
| Contract liabilities | 3,978,131,528.88 | 2,672,977,090.30 |
| Financial assets sold for repurchase | ||
| Deposits from customers and inter-bank |
| Customer brokerage deposits | ||
| Securities underwriting brokerage deposits | ||
| Employee benefits payable | 553,580,768.99 | 523,866,711.41 |
| Taxes payable | 3,233,948,597.08 | 2,939,627,533.00 |
| Other payable | 873,595,429.08 | 1,150,721,162.53 |
| Including：Interests payable | ||
| Dividends payable | 29,668,290.20 | 29,684,819.82 |
| Handling charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 3,276,628,616.74 | 78,918,152.41 |
| Other current liabilities | 516,729,820.48 | 347,485,071.57 |
| Total current liabilities | 14,277,111,968.03 | 10,070,829,218.30 |
| Non-current liabilities: | ||
| Insurance contract reserves | ||
| Long-term loans | 6,279,900,000.00 | 10,000,300,000.00 |
| Bonds payable | 1,498,716,737.02 | |
| Including：Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 24,528,519.13 | 22,356,404.47 |
| Long-term payables | ||
| Long-term payroll payables | ||
| Accrued liabilities | ||
| Deferred income | 86,672,726.83 | 27,772,083.74 |
| Deferred tax liabilities | 158,375,714.88 | 142,773,028.22 |
| Other non-current liabilities | ||
| Total non-current liabilities | 6,549,476,960.84 | 11,691,918,253.45 |
| Total liabilities | 20,826,588,928.87 | 21,762,747,471.75 |
| Owners' equity | ||
| Share capital | 1,471,951,503.00 | 1,471,987,769.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 5,365,763,566.55 | 5,185,481,523.22 |
| Less: treasury stock | 345,699,443.89 | 616,743,610.59 |
| Other comprehensive income | 84,235,115.38 | 63,130,469.51 |
| Special reserves | ||
| Surplus reserves | 1,471,951,503.00 | 1,471,987,769.00 |
| General risk reserve | ||
| Undistributed profits | 39,340,298,309.42 | 33,815,566,574.75 |
| Total equity attributable to owners of the parent company | 47,388,500,553.46 | 41,391,410,494.89 |
| Non-controlling interests | 119,506,082.25 | 140,297,234.96 |
| Total owners' equity | 47,508,006,635.71 | 41,531,707,729.85 |
| Total liabilities and owners' equity | 68,334,595,564.58 | 63,294,455,201.60 |
Legal representative：Liu MiaoPerson in charge of accounting affairs：Xie HongPerson in charge of accounting department：Song Ying
Balance sheet of parent company
As at December 31, 2024
Unit: CNY
| Item | Balance as at December 31, 2024 | Balance as at January 1, 2024 |
| Current assets: | ||
| Cash and cash equivalents | 26,651,132,665.66 | 24,271,855,815.25 |
| Held-for-trading financial assets | 1,694,282,295.97 | 1,426,992,098.83 |
| Derivative financial assets | ||
| Notes receivables | ||
| Accounts receivables | 14,701.83 | |
| Accounts receivables financing | ||
| Prepayment | 12,888,111.51 | 6,360,210.40 |
| Other receivables | 14,619,833,493.32 | 14,844,650,322.98 |
| Including：Interests receivable | ||
| Dividends receivable | ||
| Inventories | 898,380.40 | 1,051,717.53 |
| Including：Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 172,283,759.93 | 108,073,731.77 |
| Total current assets | 43,151,333,408.62 | 40,658,983,896.76 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 6,735,926,560.88 | 6,494,866,955.20 |
| Investments in other equity instruments | 406,890,784.92 | 402,589,547.17 |
| Other non-current financial assets | ||
| Investment property | 50,246,694.16 | 37,785,416.77 |
| Fixed assets | 866,342,467.75 | 950,099,737.28 |
| Construction in progress | 174,069,734.13 | 57,369,565.37 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Use right assets | 118,384.41 | 316,259.61 |
| Intangible assets | 770,645,637.66 | 781,194,544.01 |
| Including：Data resources | ||
| Development expenses | ||
| Including：Data resources | ||
| Goodwill |
| Long-term deferred expenses | 341,637.85 | 820,758.81 |
| Deferred tax assets | 124,327,561.74 | 154,645,014.28 |
| Other non-current assets | 215,109,132.46 | 200,783,195.94 |
| Total non-current assets | 9,344,018,595.96 | 9,080,470,994.44 |
| Total assets | 52,495,352,004.58 | 49,739,454,891.20 |
| Current liabilities: | ||
| Short-term loans | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 36,143,495.43 | 19,666,554.15 |
| Advance from customer | ||
| Contract liabilities | 3,354,639.36 | 2,230,734.50 |
| Employee benefits payable | 175,075,638.37 | 163,823,844.30 |
| Taxes payable | 94,520,857.23 | 204,018,131.83 |
| Other payables | 2,980,878,449.35 | 1,960,371,090.55 |
| Including：Interests payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 3,266,940,267.72 | 74,018,942.63 |
| Other current liabilities | 436,103.12 | 289,995.48 |
| Total current liabilities | 6,557,349,450.58 | 2,424,419,293.44 |
| Non-current liabilities: | ||
| Long-term loans | 6,279,900,000.00 | 10,000,300,000.00 |
| Bonds payable | 1,498,716,737.02 | |
| Including：Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term payroll payables | ||
| Accrued liabilities | ||
| Deferred income | 8,714,300.00 | |
| Deferred tax liabilities | 82,430,689.59 | 72,592,887.99 |
| Other non-current liabilities | ||
| Total non-current liabilities | 6,371,044,989.59 | 11,571,609,625.01 |
| Total liabilities | 12,928,394,440.17 | 13,996,028,918.45 |
| Owners' equity | ||
| Share capital | 1,471,951,503.00 | 1,471,987,769.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 5,361,333,958.25 | 5,179,307,881.60 |
| Less: treasury stock | 345,699,443.89 | 616,743,610.59 |
| Other comprehensive income | 80,803,192.66 | 60,513,567.32 |
| Special reserves | ||
| Surplus reserves | 1,471,951,503.00 | 1,471,987,769.00 |
| Undistributed profits | 31,526,616,851.39 | 28,176,372,596.42 |
| Total owners' equity | 39,566,957,564.41 | 35,743,425,972.75 |
| Total liabilities and owners' equity | 52,495,352,004.58 | 49,739,454,891.20 |
Consolidated income statement
Unit: CNY
| Item | Year 2024 | Year 2023 |
| 1. Total operating revenue | 31,196,248,208.33 | 30,233,301,388.26 |
| Including: Operating revenue | 31,196,248,208.33 | 30,233,301,388.26 |
| Interest income | ||
| Earned premium | ||
| Fee and commission income | ||
| 2. Total operating costs | 13,053,488,597.44 | 12,638,987,548.90 |
| Including: Cost of sales | 3,888,116,183.93 | 3,537,151,403.15 |
| Interest expense | ||
| Handling charges and commission expenses | ||
| Refunded premiums | ||
| Net payments for insurance claims | ||
| Net provision for insurance contracts | ||
| Bond insurance expense | ||
| Reinsurance Expenses | ||
| Taxes and surcharges | 4,753,755,581.18 | 4,133,126,350.68 |
| Selling and distribution expenses | 3,538,382,615.99 | 3,974,425,526.92 |
| General and administrative expenses | 1,100,779,964.56 | 1,139,480,677.23 |
| Research and Development expenses | 260,975,311.10 | 225,955,797.33 |
| Financial expenses | -488,521,059.32 | -371,152,206.41 |
| Including：Interest expenses | 305,448,236.36 | 488,003,010.93 |
| Interest income | 797,923,434.30 | 864,006,165.58 |
| Plus: Other income | 43,752,551.73 | 54,179,605.39 |
| Investment income ("-" for losses) | -9,892,859.80 | 84,724,581.98 |
| Including: income from investment in associates and joint ventures | 106,578,492.71 | 66,927,156.69 |
| Income from the derecognition of financial assets measured at amortized cost (“-” for losses) | ||
| Foreign exchange gains ("-" for losses) | ||
| Net gain on exposure hedges |
| (“-” for losses) | ||
| Gains from the changes in fair values(“-“ for losses) | 27,538,639.60 | 62,988,462.30 |
| Credit impairment losses (“-” for losses) | 1,632,237.61 | 932,241.70 |
| Impairment losses(“-“ for losses) | ||
| Gains from disposal of assets("-" for losses) | 1,058,750.22 | 44,694,238.37 |
| 3. Operating profits ("-" for losses) | 18,206,848,930.25 | 17,841,832,969.10 |
| Plus: non-operating income | 24,229,862.26 | 36,203,863.17 |
| Less: non-operating expenses | 25,779,973.47 | 72,079,275.83 |
| 4. Total profits before tax ("-" for total losses) | 18,205,298,819.04 | 17,805,957,556.44 |
| Less: income tax expenses | 4,707,520,248.15 | 4,517,297,533.23 |
| 5. Net profit ("-" for net loss) | 13,497,778,570.89 | 13,288,660,023.21 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operation ("-" for losses) | 13,497,778,570.89 | 13,288,660,023.21 |
| 5.1.2 Net profit from discontinued operation ("-" for losses) | ||
| 5.2 By ownership | ||
| 1) Attributable to shareholders of the parent company | 13,472,986,476.01 | 13,246,394,700.59 |
| 2) Attributable to non-controlling interests | 24,792,094.88 | 42,265,322.62 |
| 6. Net of tax from other comprehensive income | 21,861,927.17 | -267,285,844.76 |
| Net of tax from other comprehensive income to the owner of the parent company | 21,195,697.36 | -267,620,776.33 |
| 6.1 Other comprehensive income that cannot be reclassified into the profit and loss: | 3,388,621.68 | -270,029,977.35 |
| 1) Remeasure the variation of net indebtedness or net asset of defined benefit plans | ||
| 2) Share in other comprehensive income that cannot be classified into profit and loss under equity method | 162,693.33 | 106,537.86 |
| 3) Changes in fair value of investments in other equity instruments | 3,225,928.35 | -270,136,515.21 |
| 4) Changes in fair value of the company’s credit risks | ||
| 5) Other | ||
| 6.2 Other comprehensive income that will be reclassified into the profit and loss | 17,807,075.68 | 2,409,201.02 |
| 1) Share in other comprehensive income that will be classified into profit and loss under equity method | 16,992,055.15 | 2,000,549.31 |
| 2) Changes in fair value of investments in other debt obligations | ||
| 3) Other comprehensive income |
| arising from the reclassification of financial assets | ||
| 4) Allowance for credit impairments in investments in other debt obligations | ||
| 5) Reserve for cash-flow hedge | ||
| 6) Balance arising from the translation of foreign currency financial statements | 815,020.53 | 408,651.71 |
| 7) Others | ||
| Net of tax from other comprehensive income to non-controlling interests | 666,229.81 | 334,931.57 |
| 7. Total comprehensive income | 13,519,640,498.06 | 13,021,374,178.45 |
| Total comprehensive income attributable to owners of the parent company | 13,494,182,173.37 | 12,978,773,924.26 |
| Total comprehensive income attributable to non-controlling interests | 25,458,324.69 | 42,600,254.19 |
| 8. Earnings per share | ||
| (1) Basic earnings per share | 9.18 | 9.02 |
| (2) Diluted earnings per share | 9.18 | 9.02 |
Legal representative：Liu MiaoPerson in charge of accounting affairs：Xie HongPerson in charge of accounting department：Song Ying
Income statement of parent company
Unit: CNY
| Item | Year 2024 | Year 2023 |
| 1. Operating revenue | 11,090,969,698.38 | 9,145,460,581.25 |
| Less: Cost of sales | 8,454,312,608.86 | 6,915,061,972.96 |
| Taxes and surcharges | 74,473,268.61 | 69,667,975.44 |
| Selling and distribution expenses | ||
| General and administrative expenses | 929,395,807.24 | 955,055,338.48 |
| Research and Development expenses | 109,645,034.10 | 93,610,992.94 |
| Financial expenses | -458,345,168.33 | -523,148,275.90 |
| Including：Interest expenses | 304,323,204.07 | 344,865,497.27 |
| Interest income | 766,784,421.39 | 872,919,941.62 |
| Plus: Other income | 14,051,099.41 | 20,117,651.96 |
| Investment income ("-" for losses) | 9,846,935,832.26 | 9,964,009,506.49 |
| Including: income from investment in associates and joint ventures | 74,877,362.33 | 43,134,582.17 |
| Income from the derecognition of financial assets at amortized cost (“-” for losses) |
| Net gain on exposure hedges (“-” for losses) | ||
| Gains from the changes in fair values(“-“ for losses) | 27,528,769.00 | 60,959,140.61 |
| Credit impairment losses (“-” for losses) | 287,004.41 | 630,355.40 |
| Asset impairment losses (“-” for losses) | ||
| Gains from disposal of assets("-" for losses) | 1,177,426.76 | 44,029,637.89 |
| 2. Operating profits ("-" for losses) | 11,871,468,279.74 | 11,724,958,869.68 |
| Plus: non-operating income | 17,436,206.22 | 26,553,752.25 |
| Less: non-operating expenses | 20,162,234.74 | 24,214,208.31 |
| 3. Total profits before tax ("-" for total losses) | 11,868,742,251.22 | 11,727,298,413.62 |
| Less: income tax expenses | 570,243,254.91 | 479,471,279.32 |
| 4. Net profit ("-" for net loss) | 11,298,498,996.31 | 11,247,827,134.30 |
| 4.1 Net profit from continuing operation ("-" for losses) | 11,298,498,996.31 | 11,247,827,134.30 |
| 4.2 Net profit from discontinued operation ("-" for losses) | ||
| 5. Net of tax from other comprehensive income | 20,380,676.83 | -268,029,428.04 |
| 5.1 Other comprehensive income that cannot be reclassified into the profit and loss: | 3,388,621.68 | -270,029,977.35 |
| 1) Remeasure the variation of net indebtedness or net asset of defined benefit plans | ||
| 2) Share in other comprehensive income that cannot be classified into profit and loss under equity method | 162,693.33 | 106,537.86 |
| 3) Changes in fair value of investments in other equity instruments | 3,225,928.35 | -270,136,515.21 |
| 4) Changes in fair value of the company’s credit risks | ||
| 5) Other | ||
| 5.2 Other comprehensive income that will be reclassified into the profit and loss | 16,992,055.15 | 2,000,549.31 |
| 1) Share in other comprehensive income that will be classified into profit and loss under equity method | 16,992,055.15 | 2,000,549.31 |
| 2) Changes in fair value of investments in other debt obligations | ||
| 3) Other comprehensive income arising from the reclassification of financial assets | ||
| 4) Allowance for credit impairments in investments in other debt obligations | ||
| 5) Reserve for cash-flow hedge | ||
| 6) Balance arising from the translation of foreign currency financial statements |
| 7) Others | ||
| 6. Total comprehensive income | 11,318,879,673.14 | 10,979,797,706.26 |
| 7. Earnings per share | ||
| (1) Basic earnings per share | ||
| (2) Diluted earnings per share |
Consolidated statement of cash flows
Unit: CNY
| Item | Year 2024 | Year 2023 |
| 1. Cash flows from operating activities | ||
| Cash received from sale of goods and rendering of services | 40,036,206,060.66 | 31,589,430,458.52 |
| Net increase in customer bank deposits and placement from banks and other financial institutions | ||
| Net increase in loans from central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received from original insurance contracts | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investments from policyholders | ||
| Cash received from interest, handling charges and commissions | ||
| Net increase in placements from other financial institutions | ||
| Net capital increase in repurchase business | ||
| Net cash received from customer brokerage deposits | ||
| Refunds of taxes and surcharges | 8,746,142.49 | 4,311,439.27 |
| Cash received from other operating activities | 969,333,056.82 | 1,271,444,860.82 |
| Subtotal of cash inflows from operating activities | 41,014,285,259.97 | 32,865,186,758.61 |
| Cash paid for goods purchased and services received | 5,963,558,109.59 | 6,584,743,337.24 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in central bank and other banks and financial institutions | ||
| Cash paid for original insurance contract claims | ||
| Net increase in lending funds | ||
| Cash paid for interests, handling |
| charges and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to and on behalf of employees | 1,313,523,728.57 | 1,291,700,762.53 |
| Cash paid for taxes and surcharges | 12,329,320,329.48 | 11,873,473,704.94 |
| Cash paid for other operating activities | 2,226,114,728.68 | 2,466,904,018.44 |
| Subtotal of cash outflows from operating activities | 21,832,516,896.32 | 22,216,821,823.15 |
| Net cash flows from operating activities | 19,181,768,363.65 | 10,648,364,935.46 |
| 2. Cash flows from investing activities | ||
| Cash received from disposal of investments | 2,190,773,011.55 | 1,806,849,496.56 |
| Cash received from returns on investments | 75,373,409.80 | 57,070,473.44 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 11,432,852.36 | 69,684,519.48 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Cash received from other investing activities | ||
| Subtotal of cash inflows from investing activities | 2,277,579,273.71 | 1,933,604,489.48 |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,188,370,866.64 | 1,501,625,135.45 |
| Cash paid for investments | 2,471,700,000.00 | 1,700,000,000.00 |
| Net increase in pledge loans | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Cash paid for other investing activities | 14,339.62 | 97,207.03 |
| Subtotal of cash outflows from investing activities | 3,660,085,206.26 | 3,201,722,342.48 |
| Net cash flows from investing activities | -1,382,505,932.55 | -1,268,117,853.00 |
| 3. Cash flows from financing activities | ||
| Cash received from investors | 79,496.11 | 10,373,039.14 |
| Including: cash received by subsidiaries from investments by minority shareholders | 79,496.11 | 2,082,314.40 |
| Cash received from borrowings | 2,000,000,000.00 | 6,850,000,000.00 |
| Cash received from other financing activities | ||
| Subtotal of cash inflows from financing activities | 2,000,079,496.11 | 6,860,373,039.14 |
| Cash paid for debt repayments | 4,025,200,000.00 | 1,524,700,000.00 |
| Cash paid for distribution of dividends and profits or payment of interest | 8,283,493,371.53 | 6,546,495,859.54 |
| Including: dividends and profits paid | 29,684,819.82 | 16,594,850.59 |
| to minority shareholders by subsidiaries | ||
| Cash paid for other financing activities | 20,239,162.26 | 7,603,247.89 |
| Subtotal of cash outflows from financing activities | 12,328,932,533.79 | 8,078,799,107.43 |
| Net cash flows from financing activities | -10,328,853,037.68 | -1,218,426,068.29 |
| 4. Effect of fluctuation in exchange rate on cash and cash equivalents | 4,229,343.18 | 2,201,671.82 |
| 5. Net increase in cash and cash equivalents | 7,474,638,736.60 | 8,164,022,685.99 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 25,893,029,277.86 | 17,729,006,591.87 |
| 6. Balance of cash and cash equivalents at the end of the period | 33,367,668,014.46 | 25,893,029,277.86 |
Cash flow statements of parent company
Unit: CNY
| Item | Year 2024 | Year 2023 |
| 1. Cash flows from operating activities | ||
| Cash received from sale of goods and rendering of services | 12,533,904,242.20 | 9,465,106,131.52 |
| Refunds of taxes and surcharges | ||
| Cash received from other operating activities | 839,554,176.00 | 883,796,732.00 |
| Subtotal of cash inflows from operating activities | 13,373,458,418.20 | 10,348,902,863.52 |
| Cash paid for goods purchased and services received | 8,190,445,319.94 | 7,055,302,497.34 |
| Cash paid to and on behalf of employees | 456,045,492.39 | 459,785,090.92 |
| Cash paid for taxes and surcharges | 1,111,830,751.18 | 1,081,990,787.32 |
| Cash paid for other operating activities | 446,783,054.68 | 344,059,510.02 |
| Subtotal of cash outflows from operating activities | 10,205,104,618.19 | 8,941,137,885.60 |
| Net cash flows from operating activities | 3,168,353,800.01 | 1,407,764,977.92 |
| 2. Cash flows from investing activities | ||
| Cash received from disposal of investments | 2,190,773,011.55 | 1,725,428,067.29 |
| Cash received from returns on investments | 9,836,384,328.88 | 9,960,472,292.73 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 10,363,496.03 | 57,611,113.20 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Cash received from other investing |
| activities | ||
| Subtotal of cash inflows from investing activities | 12,037,520,836.46 | 11,743,511,473.22 |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 212,817,179.55 | 440,672,744.69 |
| Cash paid for investments | 2,460,000,000.00 | 1,720,000,000.00 |
| Net cash paid to acquire subsidiaries and other business units | ||
| Cash paid for other investing activities | ||
| Subtotal of cash outflows from investing activities | 2,672,817,179.55 | 2,160,672,744.69 |
| Net cash flows from investing activities | 9,364,703,656.91 | 9,582,838,728.53 |
| 3. Cash flows from financing activities | ||
| Cash received from investors | 8,290,724.74 | |
| Cash received from loans | 2,000,000,000.00 | 6,850,000,000.00 |
| Cash received from other financing activities | 28,533,781.29 | |
| Subtotal of cash inflows from financing activities | 2,000,000,000.00 | 6,886,824,506.03 |
| Cash paid for debt repayments | 4,025,200,000.00 | 1,524,700,000.00 |
| Cash paid for distribution of dividends and profits or payment of interest | 8,253,808,551.71 | 6,542,888,426.79 |
| Cash paid for other financing activities | 3,253,410.81 | 2,576,358,468.60 |
| Subtotal of cash outflows from financing activities | 12,282,261,962.52 | 10,643,946,895.39 |
| Net cash flows from financing activities | -10,282,261,962.52 | -3,757,122,389.36 |
| 4. Effect of fluctuation in exchange rate on cash and cash equivalents | 327,855.29 | 102,691.83 |
| 5. Net increase in cash and cash equivalents | 2,251,123,349.69 | 7,233,584,008.92 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 24,225,475,946.42 | 16,991,891,937.50 |
| 6. Balance of cash and cash equivalents at the end of the period | 26,476,599,296.11 | 24,225,475,946.42 |
Consolidated statement of changes in owners' equity
For the year ended December 31, 2024
Unit: CNY
| Item | Year 2024 | ||||||||||||||
| Equity attributable to owners of the parent company | Non-controlling interests | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less：Treasury stoc | Other Comprehensiv | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Other | Subtotal | |||||
| Preferred stoc | Perpetual | Other | |||||||||||||
| k | bond | k | e Income | ||||||||||||
| 1. Balance as at December 31 of last year | 1,471,987,769.00 | 5,185,481,523.22 | 616,743,610.59 | 63,130,469.51 | 1,471,987,769.00 | 33,815,566,574.75 | 41,391,410,494.89 | 140,297,234.96 | 41,531,707,729.85 | ||||||
| Plus: adjustments for changes in accounting policies | |||||||||||||||
| Adjustments for correction of accounting errors in prior year | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance as at January 1 of the current year | 1,471,987,769.00 | 5,185,481,523.22 | 616,743,610.59 | 63,130,469.51 | 1,471,987,769.00 | 33,815,566,574.75 | 41,391,410,494.89 | 140,297,234.96 | 41,531,707,729.85 | ||||||
| 3.Increases/decreases in the current period (“-” for decreases) | -36,266.00 | 180,282,043.33 | -271,044,166.70 | 21,104,645.87 | -36,266.00 | 5,524,731,734.67 | 5,997,090,058.57 | -20,791,152.71 | 5,976,298,905.86 | ||||||
| (1) Total comprehensive income | 21,195,697.36 | 13,472,986,476.01 | 13,494,182,173.37 | 25,458,324.69 | 13,519,640,498.06 | ||||||||||
| (2) Capital contri | -36,266.00 | 180,282,043.33 | -271,044,16 | 451,289,944.03 | -16,581,187 | 434,708,756.84 |
| buted or reduced by owners | 6.70 | .19 | |||||||||||||
| Capital contributions by owners | -36,266.00 | -3,325,954.86 | -247,013,963.19 | 243,651,742.33 | 79,604.28 | 243,731,346.61 | |||||||||
| Capital contributions by other equity instruments holders | |||||||||||||||
| Amounts of share-based payments recognized in owners' equity | 183,607,998.19 | -24,030,203.51 | 207,638,201.70 | 1,744,033.28 | 209,382,234.98 | ||||||||||
| Others | -18,404,824.75 | -18,404,824.75 | |||||||||||||
| (3) Profit distribution | -36,266.00 | -7,948,345,792.83 | -7,948,382,058.83 | -29,668,290.21 | -7,978,050,349.04 | ||||||||||
| Withdrawal of surplus reserves | -36,266.00 | 36,266.00 | |||||||||||||
| Withdrawal of general risk reserve | |||||||||||||||
| Profit distributed to owners (or shareholde | -7,948,382,058.83 | -7,948,382,058.83 | -29,668,290.21 | -7,978,050,349.04 |
| rs) | |||||||||||||||
| Others | |||||||||||||||
| (4) Internal carry-forward of owners' equity | -91,051.49 | 91,051.49 | |||||||||||||
| Conversion of capital reserves into paid-in capital | |||||||||||||||
| Conversion of surplus reserves into paid-in capital | |||||||||||||||
| Surplus reserves offsetting losses | |||||||||||||||
| Carry-forward of retained earnings from changes in defined benefit plans | |||||||||||||||
| Carry-forward of retained earnings from other comprehensive income | -91,051.49 | 91,051.49 |
| Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| Withdrawal for the period | |||||||||||||||
| Use for the period | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Balance as at December 31 of the current year | 1,471,951,503.00 | 5,365,763,566.55 | 345,699,443.89 | 84,235,115.38 | 1,471,951,503.00 | 39,340,298,309.42 | 47,388,500,553.46 | 119,506,082.25 | 47,508,006,635.71 |
For the year ended December 31, 2023
Unit: CNY
| Item | Year 2023 | ||||||||||||||
| Equity attributable to owners of the parent company | Non-controlling interests | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less：Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
| 1. Balance as at December 31 of last year | 1,471,895,100.00 | 4,800,154,468.99 | 639,021,998.78 | 330,751,245.84 | 1,471,895,100.00 | 26,772,197,213.98 | 34,207,871,130.03 | 120,923,806.61 | 34,328,794,936.64 | ||||||
| Plus: adjustments for changes in accounting policies | |||||||||||||||
| Adjustments for correction of | |||||||||||||||
| accounting errors in prior year | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance as at January 1 of the current year | 1,471,895,100.00 | 4,800,154,468.99 | 639,021,998.78 | 330,751,245.84 | 1,471,895,100.00 | 26,772,197,213.98 | 34,207,871,130.03 | 120,923,806.61 | 34,328,794,936.64 | ||||||
| 3.Increases/decreases in the current period (“-” for decreases) | 92,669.00 | 385,327,054.23 | -22,278,388.19 | -267,620,776.33 | 92,669.00 | 7,043,369,360.77 | 7,183,539,364.86 | 19,373,428.35 | 7,202,912,793.21 | ||||||
| (1) Total comprehensive income | -251,405,123.12 | 13,246,394,700.59 | 12,994,989,577.47 | 42,600,254.19 | 13,037,589,831.66 | ||||||||||
| (2) Capital contributed or reduced by owners | 92,669.00 | 385,099,228.22 | -22,278,388.19 | 407,470,285.41 | 6,457,993.99 | 413,928,279.40 | |||||||||
| Capital contributions by owners | 92,669.00 | 8,198,055.74 | 8,290,724.74 | 2,082,314.40 | 2,082,314.40 | ||||||||||
| Capital contributions by other equity instruments holders | |||||||||||||||
| Amounts of share | 376,901,172.48 | -30,569,112 | 407,470,285.41 | 4,375,679.59 | 411,845,965.00 |
| -based payments recognized in owners' equity | .93 | ||||||||||||||
| Others | |||||||||||||||
| (3) Profit distribution | 92,669.00 | -6,219,240,993.03 | -6,219,148,324.03 | -29,684,819.83 | -6,248,833,143.86 | ||||||||||
| Withdrawal of surplus reserves | 92,669.00 | -92,669.00 | |||||||||||||
| Withdrawal of general risk reserve | |||||||||||||||
| Profit distributed to owners (or shareholders) | -6,219,148,324.03 | -6,219,148,324.03 | -29,684,819.83 | -6,248,833,143.86 | |||||||||||
| Others | |||||||||||||||
| (4) Internal carry-forward of owners' equity | -16,215,653.21 | 16,215,653.21 | |||||||||||||
| Conversion of capital reserves into paid-in capital | |||||||||||||||
| Conversion of surplus reserves |
| into paid-in capital | |||||||||||||||
| Surplus reserves offsetting losses | |||||||||||||||
| Carry-forward of retained earnings from changes in defined benefit plans | |||||||||||||||
| Carry-forward of retained earnings from other comprehensive income | -16,215,653.21 | 16,215,653.21 | |||||||||||||
| Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| Withdrawal for the period | |||||||||||||||
| Use for the period | |||||||||||||||
| (6) Others | 227,826.01 | 227,826.01 | 227,826.01 | ||||||||||||
| 4. Balance as at December 31 of the current | 1,471,987,769.00 | 5,185,481,523.22 | 616,743,610.59 | 63,130,469.51 | 1,471,987,769.00 | 33,815,566,574.75 | 41,391,410,494.89 | 140,297,234.96 | 41,531,707,729.85 |
year
Statement of changes in owners' equity of parent company
For the year ended December 31, 2024
Unit: CNY
| Item | Year 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less：Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Undistributed profit | Other | Total owners' equity | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
| 1. Balance as at December 31 of last year | 1,471,987,769.00 | 5,179,307,881.60 | 616,743,610.59 | 60,513,567.32 | 1,471,987,769.00 | 28,176,372,596.42 | 35,743,425,972.75 | |||||
| Plus: adjustments for changes in accounting policies | ||||||||||||
| Adjustments for correction of accounting errors in prior year | ||||||||||||
| Others | ||||||||||||
| 2. Balance as at January 1 of the current year | 1,471,987,769.00 | 5,179,307,881.60 | 616,743,610.59 | 60,513,567.32 | 1,471,987,769.00 | 28,176,372,596.42 | 35,743,425,972.75 | |||||
| 3.Increases/decreases in the current period (“-” for decreases) | -36,266.00 | 182,026,076.65 | -271,044,166.70 | 20,289,625.34 | -36,266.00 | 3,350,244,254.97 | 3,823,531,591.66 | |||||
| (1) Other comprehensive income | 20,380,676.83 | 11,298,498,996.31 | 11,318,879,673.14 | |||||||||
| (2) Capital contrib | -36,266. | 182,026,076.6 | -271,04 | 453,033,977.3 | ||||||||
| uted or reduced by owners | 00 | 5 | 4,166.70 | 5 | ||||||||
| Capital contributions by owners | -36,266.00 | -3,325,954.86 | -246,855,127.44 | 243,492,906.58 | ||||||||
| Capital contributions by other equity instruments holders | ||||||||||||
| Amounts of share-based payments recognized in owners' equity | 185,352,031.51 | -24,189,039.26 | 209,541,070.77 | |||||||||
| Others | ||||||||||||
| (3) Profit distribution | -36,266.00 | -7,948,345,792.83 | -7,948,382,058.83 | |||||||||
| Withdrawal of surplus reserves | -36,266.00 | 36,266.00 | ||||||||||
| Profit distributed to owners (or shareholders) | -7,948,382,058.83 | -7,948,382,058.83 | ||||||||||
| Others | ||||||||||||
| (4) Internal carry-forward of owners' equity | -91,051.49 | 91,051.49 | ||||||||||
| Conversion of capital reserves into paid-in capital | ||||||||||||
| Conversion of surplus reserves into paid-in capital | ||||||||||||
| Surplus reserves offsetting losses |
| Carry-forward of retained earnings from changes in defined benefit plans | ||||||||||||
| Carry-forward of retained earnings from other comprehensive income | -91,051.49 | 91,051.49 | ||||||||||
| Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| Withdrawal for the period | ||||||||||||
| Use for the period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance as at December 31 of the current year | 1,471,951,503.00 | 5,361,333,958.25 | 345,699,443.89 | 80,803,192.66 | 1,471,951,503.00 | 31,526,616,851.39 | 39,566,957,564.41 |
For the year ended December 31, 2023
Unit: CNY
| Item | Year 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less：Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Undistributed profit | Other | Total owners' equity | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
| 1. Balance as at December 31 of last year | 1,471,895,100.00 | 4,789,603,151.65 | 639,021,998.78 | 328,542,995.36 | 1,471,895,100.00 | 23,131,570,801.94 | 30,554,485,150.17 | |||||
| Plus: adjustments for changes in accounting policies | ||||||||||||
| Adjustments for correction of accounting errors in prior year | ||||||||||||
| Others | ||||||||||||
| 2. Balance as at January 1 of the current year | 1,471,895,100.00 | 4,789,603,151.65 | 639,021,998.78 | 328,542,995.36 | 1,471,895,100.00 | 23,131,570,801.94 | 30,554,485,150.17 | |||||
| 3.Increases/decreases in the current period (“-” for decreases) | 92,669.00 | 389,704,729.95 | -22,278,388.19 | -268,029,428.04 | 92,669.00 | 5,044,801,794.48 | 5,188,940,822.58 | |||||
| (1) Other comprehensive income | -251,813,774.83 | 11,247,827,134.30 | 10,996,013,359.47 | |||||||||
| (2) Capital contributed or reduced by owners | 92,669.00 | 389,476,903.94 | -22,278,388.19 | 411,847,961.13 | ||||||||
| Capital contributions by owners | 92,669.00 | 8,198,055.74 | 8,290,724.74 | |||||||||
| Capital contributions by other equity instruments holders | ||||||||||||
| Amounts of share-based payments recognized in owners' equity | 381,278,848.20 | -30,569,112.93 | 411,847,961.13 | |||||||||
| Others | ||||||||||||
| (3) Profit distribution | 92,669.00 | -6,219,240,993.03 | -6,219,148,324.03 | |||||||||
| Withdrawal of surplus reserve | 92,669.00 | -92,669.00 |
| s | ||||||||||||
| Profit distributed to owners (or shareholders) | -6,219,148,324.03 | -6,219,148,324.03 | ||||||||||
| Others | ||||||||||||
| (4) Internal carry-forward of owners' equity | -16,215,653.21 | 16,215,653.21 | ||||||||||
| Conversion of capital reserves into paid-in capital | ||||||||||||
| Conversion of surplus reserves into paid-in capital | ||||||||||||
| Surplus reserves offsetting losses | ||||||||||||
| Carry-forward of retained earnings from changes in defined benefit plans | ||||||||||||
| Carry-forward of retained earnings from other comprehensive income | -16,215,653.21 | 16,215,653.21 | ||||||||||
| Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| Withdrawal for the period | ||||||||||||
| Use for the period | ||||||||||||
| (6) Others | 227,826.01 | 227,826.01 |
| 4. Balance as at December 31 of the current year | 1,471,987,769.00 | 5,179,307,881.60 | 616,743,610.59 | 60,513,567.32 | 1,471,987,769.00 | 28,176,372,596.42 | 35,743,425,972.75 |
3. Company Profile
3.1. Company Overview
Luzhou Laojiao Co., Ltd. (hereinafter referred to as "Company" or "the Company"), formerly known asLuzhou City Qu Liquor Factory and Luzhou Laojiao Distillery in Sichuan Province. It was established inMarch 1950 on the basis of 36 brewing workshops from the Ming and Qing dynasties. On September20, 1993, Luzhou Laojiao brewery established a joint-stock limited company with fund-raisingexclusively from its operational assets. On October 25, 1993, the public offering of shares wasapproved by Sichuan Provincial People's Government and CSRC with two documents of ChuanFuHan(1993) No.673 and FaShenZi (1993) No.108. After the offering, the total share capital was 86,880,000shares, which were listed and traded in Shenzhen stock exchange on May 9, 1994.
As at December 31, 2004, the Company's total share capital reached 841,399,673 shares after multiplerights issues, among which the controlling shareholder, State Assets Management Bureau of Luzhou(later renamed as State-owned Assets Supervision and Administration Commission of Luzhou,hereinafter referred to as "SASAC of Luzhou") held 585,280,800 shares of the Company, with ashareholding ratio of 69.56%.
On October 27, 2005, the Company implemented the non-tradable share reform. After theimplementation, the total share capital remained unchanged, and the shareholding ratio of SASAC ofLuzhou decreased from 69.56% to 60.43%.
In November 2006, the Company implemented private placement, and the total share capital increasedfrom 841,399,673 shares to 871,399,673 shares. The shareholding ratio of SASAC of Luzhoudecreased from 60.43% to 58.35%.
As at February 27, 2007, SASAC of Luzhou sold 42,069,983 shares of the Company, and after the sale,it still held 466,375,156 shares of the Company, with its shareholding ratio reduced to 53.52%.
On May 19, 2008, the Company increased 522,839,803 shares of capital stock resulting from capitalreserve and undistributed profits transferred to increase capital stock. After the implementation, the totalshare capital reached 1,394,239,476 shares, among which, SASAC of Luzhou held 746,200,250 sharesof the Company, and the shareholding ratio was still 53.52%.
On September 3, 2009, the 300,000,000 shares and the 280,000,000 shares held by SASAC of Luzhouwere separately transferred to Luzhou Laojiao Group Co., Ltd. (hereinafter referred to as the "LaojiaoGroup") and Luzhou XingLu Investment Group Co., Ltd. (hereinafter referred to as the "XingLu Group").After the transfer, Laojiao Group, Xinglu Group, and SASAC of Luzhou respectively held 300,000,000shares, 280,000,000 shares and 166,200,250 shares. So far, Laojiao Group became the first majority
shareholder and SASAC of Luzhou was the actual controller.
From June 6, 2012 to November 20, 2013, the first and second phases of the Company's equityincentive plan were exercised. After the exercise, the total share capital of the Company was changedto 1,402,252,476 shares.
On April 10, 2014 and July 18, 2016, SASAC of Luzhou transferred 81,088,320 shares and 84,000,000shares to Laojiao Group and XingLu Group respectively. In addition, Laojiao Group has increased itsequity stake through the secondary market of 13,137,100 shares. So far, Laojiao Group, XingLu Groupand SASAC of Luzhou held 394,225,489 shares, 365,971,142 shares and 1,111,930 sharesrespectively, with the shareholding ratios of 28.11%, 26.10% and 0.08% respectively.
On August 23, 2017, the Company issued CNY 62,500,000 ordinary shares (A shares) privately, raisinga total capital of CNY 3,000,000,000. After the additional issuance, the total capital stock of theCompany was changed to 1,464,752,476 shares. In addition, from 2017 to 2018, Laojiao Groupdecreased 13,137,100 shares that were increased through the secondary market from April 2014 toDecember 2015. After share reduction, Laojiao Group, XingLu Group and SASAC of Luzhou held381,088,389 shares, 365,971,142 shares and 1,111,930 shares respectively in the Company, with theshareholding ratios of 26.02%, 24.99% and 0.08% respectively. Laojiao Group still was the first majorityshareholder and SASAC of Luzhou still was the actual controller.
In February 2022, the registration of 6,862,600 shares of the Restricted Share Incentive Plan grantedby the Company for the first time were completed; in September 2022, the Company granted 342,334shares of the Restricted Share Incentive Plan for the second time; in September 2022, with sevenawardees no longer eligible, the Company decided to repurchase and retire the 62,310 restrictedshares of them that had been granted to the aforesaid awardees but remained in lockup; in December2022, the Company granted 92,669 shares of the Restricted Share Incentive Plan for the third time.
From December 2023 to June 2024, Luzhou Laojiao Group Co., Ltd., through its wholly-ownedsubsidiary Sichuan Golden Rudder Investment Co., Ltd., increased its holdings in the Company by1,140,200 shares through call auction trading, accounting for 0.08% of the total share capital of theCompany. Following that, Luzhou Laojiao Group Co., Ltd. and Sichuan Golden Rudder Investment Co.,Ltd. collectively held 382,228,589 shares in the Company.
In January, June and September 2024, as five awardees were no longer eligible for the incentives, theCompany decided to repurchase and retire a total of 36,266 restricted shares that had been granted tothe aforesaid awardees but remained in lockup. As of December 31, 2024, the repurchase andretirement of the said restricted shares had been completed, the total shares of the Company changedto 1,471,951,503 shares, and the grants and repurchases under the restricted share incentive plan didnot lead to change of the Company’s controlling shareholder or actual controller. As of December 31,2024, Laojiao Group, its wholly-owned subsidiary Sichuan Golden Rudder Investment Co., Ltd., andXingLu Group held 381,088,389 shares, 1,140,200 shares and 365,971,142 shares respectively in theCompany, with the shareholding ratios of 25.89%, 0.08% and 24.86% respectively. Laojiao Group helda total of 50.83% of the Company's voting rights.
3.2 Registered address of the Company, company type, and headquarter addressRegistered address and headquarter address of the Company are located in Sichuan Luzhou LaojiaoSquare and company type is other incorporated company (Listed).
3.3 Business nature of the Company and main business activityIndustry of the Company is the baijiu subdivision industry of the liquor and wine, beverage and refinedtea production industry.The main activity are research and development, production and sales of “National Cellar1573”,”Luzhou Laojiao” and other baijiu series.The main products are: “National Cellar 1573 Series”, ”Century-old Luzhou Laojiao JiaolingSeries” , ”Luzhou Laojiao Tequ”, ”Touqu”, ”Hey Guys” and other baijiu series.
3.4 The name of the controlling shareholder and the ultimate substantive controllerThe controlling shareholder is Luzhou Laojiao Group Co., Ltd.; the ultimate substantive control isSASAC of Luzhou.
3.5 Approval and submission of the financial report and its dateThe financial report is approved for issue by the Board of Directors of the Company on April 24, 2025.In accordance with the Company's Articles of Association, the financial report will be submitted to ageneral meeting of shareholders for review.
4. Basis of preparation of financial statements
4.1. Basis of preparation of financial statements
The Company has prepared its financial statements on a going concern basis, and the preparation isbased on actual transactions and events in compliance with Accounting Standards for BusinessEnterprises and relevant guidance and explanation (the following called the ASBE) issued by Ministry ofFinance, and Rules on Company Information Disclosure and Preparation of Publicly Issued SecuritiesNo.15- General Rules on Financial Reporting Rules (2023 Revision) issued by CSRC.
4.2. Going concern
The Company’s business activities have adequate financial support. Based on the current informationobtained by the Company, comprehensively considering factors such as macro-policy risk, marketoperation risk, current or long-term profitability, debt repayment ability of the Company, as well as itsresource of financial support, the Company believes that it is reasonable to prepare the financialstatements on a going concern basis and there are no events or situations resulting in significantdoubts over going concern for at least 12 months.
5. Significant accounting policies and accounting estimatesThe Company shall comply with the disclosure requirements for companies engaging in food & liquorand wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation ofListed Companies—Industry-specific Information Disclosure.
5.1 The declaration about compliance with ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and presenttruly and completely, the financial position and the Company’s and results of operations, changes inshareholders’ equity and cash flows. In addition, in all material respects, the financial statements of theCompany comply with disclosure requirements of the financial statements and their notes inaccordance with Rules on Company Information Disclosure and Preparation of Publicly IssuedSecurities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2023.
5.2 Accounting period
The Company adopts the calendar year as its accounting year, i.e. from January 1 to December 31.
5.3 Business Cycle
The Company’s business cycle is 12 months.
5.4 Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5.5 Methods for determining materiality standards and selection criteria?Applicable □ N/A
| Item | Materiality standard |
| Material receivables withdrawal of bad debt provision separately accrued Material bad debt provision recovered or reversed in accounts receivables Significant write-off of accounts receivables Significant prepayments aging over one year, accounts payable, contract liabilities and other payables | The carrying balance at the end of the Reporting Period ≥ CNY 5 million |
| Material construction in progress | Single project under construction with a budget exceeding CNY 150 million and a total amount accounted for the current period exceeding CNY 50 million |
| Material overseas operating entity | The overseas operating entities' external revenue accounts for ≥ 3% of the consolidated operating revenue, and the total profit accounts for ≥ 0.5% of the consolidated total profit |
| Material non-wholly-owned subsidiary | The revenue of non-wholly-owned subsidiaries accounts for ≥ 3% of the consolidated operating revenue, and the total profit accounts for ≥ 0.5% of the consolidated total profit |
| Significant associated enterprise | The book value of long-term equity investments in associated enterprises accounts for ≥ 3% of the total assets in the consolidated financial statements |
5.6 The accounting treatment of business combinations involving enterprises undercommon control and business combinations not involving enterprises undercommon control
(1) Business combination under common control
Assets and liabilities obtained by the Company from the combine through business combination undercommon control shall be measured at the book value as stated in the consolidated financial statementsof ultimate controlling party at the combination date. The share of the book value of the merged party’sowner’s equity in the consolidated financial statements is taken as the initial investment cost of long-term equity investments in individual financial statements. The capital reserve (stock premium or capitalpremium) is adjusted according to the difference between the book value of net asset acquired throughcombination and the book value of consideration paid for the combination (or total par value of sharesissued). If the capital reserve (stock premium or capital premium) is insufficient to offset, the retainedearnings shall be adjusted.
(2) Business combination not under common control
Assets paid, liabilities incurred or assumed and the equity securities issued as consideration forcombination shall be measured based on fair value on the acquisition date, the difference between fairvalue and its book value shall be included in current profit and loss. The Company shall recognize thedifference of the combination costs in excess of the fair value of the net identifiable asset acquired fromthe acquiree through combination as goodwill. After the review, if the combination costs are still in shortof the fair value of the net identifiable asset acquired from the acquiree through combination, includethe difference in the current profit and loss.Fees, commissions, and other transaction expenses paid on issuance of equity securities ascombination consideration in the business combination shall be included in the initial measurementamount of equity securities.
5.7 Criteria for judging control and preparation of consolidated financial statements
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control, and all subsidiariescontrolled are included in the consolidation scope of the consolidated financial statements.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and itssubsidiaries, and are prepared by the parent company with other relevant information. When preparingconsolidated financial statement, the Company considers the Group as an accounting entity, adoptsunified accounting policies, and applies the requirements of ASBE related to recognition, measurementand presentation to reflect the Group’s financial position, operating results and cash flows.
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt thesame accounting policies and accounting periods as those of the Company. If the accounting policies oraccounting periods of a subsidiary are different from those of the Company, the financial statements ofthe subsidiary, upon preparation of consolidated financial statements, shall be made necessaryadjustment based on its own accounting policies and accounting periods of the Company. Forsubsidiaries acquired from the business combination not under common control, the financialstatements shall be adjusted on the basis of the fair value of identifiable net assets on the date ofpurchase. For the subsidiary acquired from the business combination under common control, its assetsand liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimatecontrolling party) shall be adjusted on the basis of the book value in the consolidated statements of theultimate controlling party.
The portion of a subsidiary’s equity, the current net profit and loss of subsidiaries, and the currentcomprehensive income attributable to non-controlling interests shall be separately presented as non-controlling interests in consolidated balance sheet within owners' equity, below the net profit line itemand below the total comprehensive income line item in the consolidated income statement respectively.When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceedsthe balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of thesubsidiary, the excess shall be allocated against the non-controlling interests.
① Acquisition of subsidiaries or business
During the reporting period, if the Company acquires subsidiaries from the business combination undercommon control, the opening balance in the consolidated balance sheet shall be adjusted. The income,expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reportingperiod shall be included in the consolidated income statement. The cash flows of the newly acquiredsubsidiaries from the beginning to the end of the reporting period shall be included in the consolidatedstatement of cash flows. At the same time, the relevant items of the comparative information shall beadjusted as the combined entity existed since the control point of the ultimate controlling party.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons, the parties involved in the combine shall be deemed to adjust inthe current state when the ultimate controlling party starts to control them. For the equity investmentbefore obtaining control of the investee, the recognized relevant profit or loss and other comprehensiveincome and other changes in net assets between the later of acquisition date of previous equity and thedate on which both the investor and the investee are under common control and the combination dateshall respectively write-down the beginning retained earnings or current profits and losses during theperiod of comparative information.
During the reporting period, if the Company acquires subsidiaries from the business combination notunder common control, the opening balance in the consolidated balance sheet shall not be adjusted.The income, expenses and profits of the newly acquired subsidiaries from the acquisition date to theend of the reporting period shall be included in the consolidated income statement. The cash flows ofthe newly acquired subsidiaries from the acquisition date to the end of the reporting period shall beincluded in the consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee not under common controldue to additional investment or other reasons, the Company shall re-measure the previously held equityinterests to its fair value on the acquisition date, and the difference shall be recognized as investmentincome. When the previously held equity investment is accounted for under equity method, any othercomprehensive income previously recognized and other equity changes (excluding othercomprehensive, net profit and loss and profit distribution ) in relation to the acquiree’s equity changesshall be transferred to profit and loss for the current period when acquisition took place, except for othercomprehensive income resulting from changes in net liabilities or net assets due to re-measurement ofdefined benefit plan by investee.
② Disposal of subsidiaries and business
General treatmentsDuring the reporting period, if the Company disposes subsidiaries, the income, expenses and profits ofthe newly disposed subsidiaries from the beginning to the disposal date shall be included in theconsolidated income statement. The cash flows from the beginning to the disposal date shall beincluded in the consolidated statement of cash flows.
In case of loss of control over the investee due to partial disposal of the equity investment or otherreasons, the Company shall re-measure the remaining equity investment at its fair value at the date ofloss of control. The amount of the consideration obtained from the disposal of the equity and the fairvalue of the remaining equity, minus the net asset shares calculated continuously from the acquisitiondate based on the previous shareholding proportion and the goodwill, the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related tothe former subsidiary’s equity investment of or other changes in owners' equity excluding net profit andloss, other comprehensive income and profit distribution shall be transferred to investment income forthe current period when control is lost. Other comprehensive income resulting from changes in netliabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.
Disposal of subsidiaries by stepIf the Company loses control of a subsidiary is through multiple transactions by steps, the terms,conditions and economic impact of the disposal transaction shall be considered. When one or more ofthe following conditions may indicate that multiple transactions should be treated as a package oftransactions for accounting treatment:
A. These arrangements were entered into at the same time or in contemplation of each other;B. These arrangements work together to achieve an overall commercial effect;C. The occurrence of one arrangement depends on the occurrence of at least one other arrangement;D. One arrangement alone is not economically justified, but it is economically justified when consideredtogether with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of controlbelong to a package transaction, the Company shall account for as a transaction; However, thedifference between each disposal consideration received and the corresponding proportion of thesubsidiary’s net assets before the loss of control shall be recognized as other comprehensive income inthe consolidated financial statements and transferred into the profit and loss of the current period whenthe control is lost.
If the transactions from the disposal of the equity investment of the subsidiary to the loss of control arenot considered as a package transactions, the accounting treatment shall be conducted according tothe relevant policies on the partial disposal of the equity investment of the subsidiary where control isretained before the loss of control. When the control is lost, the disposal shall be accounted foraccording to the general treatment.
③ Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment result from acquisition ofnon-controlling shareholders and the share of net assets of the subsidiary calculated continuously fromthe acquisition date or combination date based on newly shareholding proportion shall be adjusted toequity (share) premium of capital reserves in the consolidated balance sheet. If the capital reserve isinsufficient, any excess shall be adjusted against retained earnings.
④ Partial disposals of equity investment in subsidiaries without loss of controlWhen the Company disposes of a portion of a long-term equity investment in a subsidiary without lossof control, the difference between disposal consideration and net assets of the subsidiary calculatedcontinuously since the acquisition date or the combination date related to the disposal of long-termequity investment shall be adjusted to equity (share) premium of capital reserves in the consolidatedbalance sheet. If the capital reserve is insufficient, any excess shall be adjusted against retainedearnings.
5.8 Classification of joint venture arrangements and the accounting treatmentmethod of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture according to the structure,legal form, agreed terms and other facts and conditions of a joint arrangement. A joint arrangement thatis structured through a separate vehicle is usually classified as a joint venture. However, when a jointarrangement provides clear evidence that it meets any of the following requirements and complies withapplicable laws and regulations as a joint operation:
① The legal form of the joint arrangement indicates that the parties that have joint control have rights tothe assets, and obligations for the liabilities, relating to the arrangement.
② The terms of the joint arrangement specify that the parties that have joint control have the rights tothe assets, and the obligations for the liabilities, relating to the arrangement.
③ Other facts and circumstances indicate that the parties that have joint control have rights to theassets, and the obligations for the liabilities, relating to the arrangement. The parties that have jointcontrol have rights to substantially all of the output of the arrangement, and the arrangement dependson the parties that have joint control on a continuous basis for settling the liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation, andaccount for them in accordance with relevant accounting standards:
① Its solely-held assets, and its share of any assets held jointly;
② Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
③ Its revenue from the sale of its share of the output arising from the joint operation;
④ Its share of the revenue from sale of the output by the joint operation; and
⑤ Its solely-incurred expenses and its share of any expenses incurred jointly.
The Company shall only recognize the portion of the profit and loss attributable to other participants inthe joint venture, resulting from investment or sale of assets to the joint venture by the Company(excluding those assets constituting the business), prior to the sale of such assets to a third party. The
Company shall fully recognize impairment loss when there is any impairment loss of invested or soldassets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall onlyrecognize the part of the profit and loss attributable to other participants in the joint venture beforeselling the assets and other assets purchased from the joint venture (excluding those assetsconstituting the business) to a third party. When the impairment loss of the purchased assets is inaccordance with the ASBE No.8-Asset Impairment, the Company shall recognize such lossesaccording to its share. When the Company does not have common control over the joint venture, if theCompany enjoys the assets related to the joint venture and assumes the liabilities related to the jointventure, the accounting treatment shall be conducted according to the above principles. Otherwise, theaccounting treatment shall be conducted in accordance with the relevant accounting standards.
5.9 Cash and cash equivalents
When preparing the cash flow statement, the Company recognizes cash on hand and deposits that canbe readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3months from purchase date), highly liquid investments that are readily convertible to known amounts ofcash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are notrecognized as cash and cash equivalents in the cash flow statement.
5.10 Foreign currency transactions and translation of foreign currency statements
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company, the amount in theforeign currency shall be translated into the amount in CNY currency at the spot exchange rate of thetransaction date. For the monetary items of foreign currencies, the translation is done according to spotrate of the balance sheet date. The exchange difference generated from the difference of spot rate ofthe current balance sheet date and the time of initial recognition of a foreign currency or the previousbalance sheet date is charged to the profit or loss of the current period except that the exchangedifference generated from foreign currency borrowings relating to assets of which the acquisition orproduction satisfies the capitalization conditions is capitalized.Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period,the Company shall firstly translate the foreign currency into the amount in functional currency at thespot exchange rate on the date when the fair value is determined, and then compare it with the originalfunctional currency amount. Difference between the translated functional currency amount and theoriginal functional currency amount is treated as profit or loss from changes in fair value (includingchanges in exchange rate) and is recognized in current profit and loss. If there is a non-monetary itemof available-for-sale financial assets, the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
sheet date. Shareholders’ equity items, except for the item of "undistributed profits", are translated atthe spot exchange rates on the dates when the transactions occur. Revenue and expense items in theincome statement are translated at the spot exchange rates on the dates when the transactions occuror at the exchange rate determined in a systematical and reasonable method and similar to the spotexchange rate on the day when the transactions occur. Differences arising from the above translationsof foreign currency financial statements are separately listed under other comprehensive income in theconsolidated balance sheet. If the overseas business is partly disposed of, the foreign currencyfinancial statements exchange difference shall be calculated in proportion to the percentage of disposaland transferred to gain or loss on disposal for the current period.Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximateexchange rate of spot rate on the date of cash flow.
5.11 Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity. When the Company becomes a party to a financialinstrument contract, the related financial asset or financial liability should be recognized.
(1) Classification, recognition and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristicsof financial assets, the Company classifies financial assets into: financial assets measured at amortizedcost; financial assets measured at fair value with their changes included into other comprehensiveincome; and financial assets measured at fair value with their changes included into currentprofits/losses.
At the initial recognition, financial assets are measured at fair value. For financial assets measured atfair value with their changes included into current profits/losses, the expenses involved in thetransaction are directly recorded into current profits/losses; for other financial liabilities, the expensesinvolved in the transaction are recorded into the initially recognized amount.
① Financial assets measured at amortized cost
The business model in which the Company manages financial assets measured at amortized cost aimsto receive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financialassets are consistent with basic borrowing and lending arrangements, which means that cash flowgenerated on a specific date serves only as payment for principal and interests based on the amount ofunpaid principal. The Company adopts the effective interest method for such financial interests,performs subsequent measurement of them at amortized cost, and includes the gains or losses fromderecognition, changes or impairment of them into current profits/losses.
② Financial assets measured at fair value with their changes included into other comprehensiveincomeThe business model in which the Company manages such financial assets both aims to receivecontract cash flow and for the purpose of sale. Furthermore, the characteristics of the contract cashflow of such financial assets are consistent with basic borrowing and lending arrangements. TheCompany measure such financial assets at fair value and include their changes into othercomprehensive income, but record impairment losses or gains, exchange gains or losses and interestincome calculated in the effective interest method into current profits/losses.
At the initial recognition, the Company may specify non-trading equity instrument investment as afinancial asset measured at fair value with its changes included into other comprehensive income andshould recognize the dividend income according to regulations; the specification is irrevocable oncemade. When the financial asset is derecognized, the cumulative gains or losses previously included intoother comprehensive income should be transferred into retained earnings.
③ Financial assets measured at fair value with their changes included into current profits/lossesFor financial assets other than the above financial assets measured at amortized cost and financialassets measured at fair value with their changes included into other comprehensive income, theCompany classifies them as financial assets measured at fair value with their changes included intocurrent profits/losses. In addition, at the initial recognition, the Company specifies partial financialassets as financial assets measured at fair value with their changes included into current profits/losses,in order to eliminate or substantially reduce accounting mismatch. For such financial assets, theCompany performs subsequent measurement using fair value and records changes in the fair valueinto current profits/losses.
(2) Classification, recognition and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at fair valuewith their changes included into current profits/losses and other financial liabilities. For financialliabilities measured at fair value with their changes included into current profits/losses, the expensesinvolved in the transaction are directly recorded into the current profits/losses. For other financialliabilities, the expenses involved in the transaction are recorded into the initially recognized value.
① Financial liabilities measured at fair value with their changes included into current profits/lossesFinancial liabilities measured at fair value with their changes included into current profits/losses includetrading financial liabilities (including derivatives classified as financial liabilities) and the financialliabilities specified to be measured at fair value with their changes included into current profits/losses at
the initial recognition.
Trading financial liabilities (including derivatives classified as financial liabilities) are subsequentlymeasured at fair value, with changes in fair value recorded into current profits/losses, except for thoserelated to hedge accounting.
For those specified as financial liabilities measured at fair value with their changes included into currentprofits/losses, changes in the fair value of such liabilities caused by changes in the Company’s owncredit risk should be included into other comprehensive income. In derecognition of such liabilities,cumulative changes in their value caused by the Company’s own credit risk that have been recordedinto other comprehensive income should be transferred into retained earnings. Other changes in theirfair value should be recorded into current profits/losses. If treatment of the impact of the Company’sown credit risk changes of such financial liabilities in the above manner causes or expands accountingmismatch in profits/losses, the Company will include all gains or losses of such financial liabilities(including the amount of the impact of the Company’s own credit risk changes) into currentprofits/losses.
② Other financial liabilities
Financial liabilities other than those formed from the transfer of financial assets not meetingderecognition conditions or continuous involvement into transferred financial assets and those outsidefinancial guarantee contracts are classified as financial liabilities measured at amortized cost. Suchfinancial liabilities should be subsequently measured at amortized cost and the gains or losses fromderecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assetsIf a financial asset meets any of the following conditions, it shall be derecognized: 1)The contractualright for collecting the cash flow of the financial asset has been terminated; 2)The financial asset hasbeen transferred and almost all the risks and remunerations in respect of the ownership of the financialasset has been transferred to the transferee; 3)The financial asset has been transferred, and althoughthe enterprise neither transfers nor retains almost all the risks and remunerations in respect of theownership of the financial asset, it has abandoned its control over the asset.
If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of theownership of the financial asset and does not abandon its control over the asset, the involved financialasset shall be recognized according to the level of continuous involvement of the transferred financialasset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement ofthe transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
value of the financial asset.
If the overall transfer of the financial asset meets the recognition conditions, the difference between thecarrying value of the transferred financial asset as well as the consideration received from the transferand the cumulative amount of fair value changes originally-recorded into other comprehensive incomesshall be recorded into the current profits/losses.
If partial transfer of the financial asset meets the recognition conditions, the carrying value of thetransferred financial asset shall be apportioned at the relative fair value between the derecognition andunderecognition part. The difference between the summation of the consideration received from thetransfer and the cumulative amount of fair value changes originally-recorded into other comprehensiveincomes that should be apportioned to the derecognition part and the apportioned aforementionedcarrying value shall be recorded into the current profits/losses.
For a financial asset sold with the right of recourse or with the transfer of the financial assetendorsement, the Company shall decide whether almost all the risks and remunerations in respect ofthe ownership of the financial asset should be transferred. If they are transferred, the financial assetshall be derecognized; if they are retained, the financial asset shall not be derecognized; if they areneither transferred nor retained, the Company will continue to decide whether the enterprise shouldretain control over the asset and perform the accounting treatment according to the principles stated inprevious paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved, the Company willderecognize the financial liability (or the part of it). When the Company (borrower) signs an agreementwith a lender to replace an original financial liability in the form of bearing a new financial liability andthe contract terms for the new financial liability differ from those for the original in substance, theoriginal financial liability should be derecognized and the new one should be recognized. When theCompany makes substantial changes to the contract terms of an original financial liability (or a part of it),the original financial liability should be derecognized and a new financial liability should be recognizedaccording to the amended contract terms.
When a financial liability (or a part of it) is derecognized, the Company will include the differencebetween its carrying value and the consideration paid (including non-cash assets or liabilities borne thatare transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
When the Company has the legal right to offset recognized financial assets and financial liabilities andmay execute the legal right currently and simultaneously, the Company plans to settle orsimultaneously encash the financial assets in net amounts and pay off the financial liabilities, thefinancial assets and the financial liabilities which are presented in the net amount after the mutual offsetin the balance sheet. Other than that, they shall be presented separately in the balance sheet withoutthe mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilitiesFair value refers to the price that a market participant can receive for selling an asset or transferring aliability in an orderly transaction on the measurement date. For an existing financial instrument in anactive market, the Company adopts the quotations in the active market to determine its fair value.Quotations in the active market refer to prices that can be easily obtained from exchanges, brokers,industrial associations and pricing service institutions and represent the actual prices in the markettransactions happening in a fair trade. For a non-existing financial instrument in an active market, theCompany adopts the valuation technique to determine its fair value. The valuation technique includesreferences to familiar situations and the prices used by the parties voluntarily participating in the recentmarket transactions, as well as references to the present fair value of other financial instruments of thesame nature, discounted cash flow method and options pricing model. In the valuation, the Companyuses a valuation technique that is applicable in the current situation with sufficient data available andother information support, chooses input values that are consistent with the asset or liabilitycharacteristics considered by market players in related asset or liability transactions, and makemaximum effort to use related observable input values on a preferential basis. When it is unable orunfeasible to obtain related observable input values, unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets afterthe deduction of all liabilities. The Company’s issuance (including refinancing), repurchase, sale orcancellation of equity instruments serve as the change treatment of equity. Transaction expensesrelated to the equity transactions are deducted from the equity. The Company does not recognizechanges in the fair value of equity instruments.
Dividends from the Company’s equity instruments distributed during the validity (including the “interests”from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss, the Company treats financial assets measured at amortized costand debt instrument investment measured at fair value with its changes included into other
comprehensive income by impairment and recognizes the provision for loss.
Credit loss means the difference between all contract cash flow discounted at the original effectiveinterest rate to be received according to contracts and all contract cash flow expected to be received,namely, the present value of all cash shortage. For a financial asset with credit impairment purchasedby or originated from the Company, it should be discounted by the effective interest rate after creditadjustment to the financial asset.
For accounts receivable that do not contain significant financing components, the Company adoptssimplified measurement to measure loss provisions according to the amount equivalent to the expectedcredit loss for the entire duration.
For a financial asset other than those using the above simplified measurement, the Company assesseson each balance sheet date whether its credit risk has substantially increased since the initialrecognition. If it has not and is in the first stage, the Company will measure the loss provision at theamount equivalent to the expected credit loss for the next 12 months and calculate the interest incomeaccording to the book balance and the effective interest rate; if it has substantially increased since theinitial recognition without credit impairment and is in the second stage, the Company will measure theloss provision at the amount equivalent to the expected credit loss for the entire duration and calculatethe interest income according to the book balance and the effective interest rate; if credit impairmenthas occurred since the initial recognition and is in the third stage, the Company will measure the lossprovision by the amount equivalent to the expected credit loss for the entire duration and calculate theinterest income according to the amortization cost and the effective interest rate. For financialinstruments with low credit risks on balance sheet dates, the Company assumes that their credit riskshave not substantially increased since the initial recognition.
The Company assesses expected credit losses of financial instruments based on individual and groupassessment. The Company considers the credit risk characteristics of different customers andassesses the expected credit losses of accounts receivable and other receivables based on accountage portfolio. When assessing expected credit losses, the Company considers reasonable and well-founded information on past matters, present conditions and forecast of future economic conditions.
When it no longer reasonably expects to recover all or part of the contract cash flow of financial assets,the Company will directly write down the book balance of such financial assets.
5.12 Notes receivable
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
Divide notes receivables into various portfolios according to common risk characteristics based on thecredit risk characteristics of acceptors and determine the accounting estimate policies of expectedcredit loss：
| Portfolio name | Provision method |
| Bank acceptance bill portfolio | The management evaluates that this type has low credit risk and its fixed bad debt provision ratio is 0%. |
| Trade acceptance portfolio | The provision for impairment is made according to the expected loss rate with the same portfolio classification of accounts receivables |
5.13 Accounts receivables
The types of portfolios for which bad debt provisions are made according to the portfolios of credit riskcharacteristics and the basis for determining them:
As for accounts receivables, regardless of whether there is a significant financing component, theCompany always measures the provision for loss based on the amount equivalent to the expectedcredit loss over the entire life, and the resulting increase or reversal of provision for loss shall beincluded in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment,the Company shall make bad debt provision for the account receivable and recognize the expectedcredit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluatedat a reasonable cost, the Company shall divide the accounts receivables portfolio according to creditrisk characteristics and measure the expected credit loss based on portfolios:
| Portfolio name | Provision method |
| Risk portfolio | Expected credit loss |
| Other portfolio | No bad debt provision |
Other portfolio refers to the normal intercourse funds among the Company and businesses undercommon control, the recovery of which are controllable with no risks. Thus, no bad debt provision wasmade.The aging calculation method of credit risk characteristic portfolio based on aging:
The Company combines the accounts receivables classified as risk portfolio in accordance with similarcredit risk characteristics (aging), and calculates the expected credit loss through the exposure atdefault and expected credit loss rate over the entire life based on the current situation and prediction offuture economic situation consulting historical credit loss experience. The comparative table of thecredit loss rate is as follows:
| Aging | Expected loss provision rate % |
| Within 1 year | 5 |
| 1-2 years | 10 |
| 2-3 years | 20 |
| 3-4 years | 40 |
| 4-5 years | 80 |
| Over 5 years | 100 |
The ageing of accounts receivable is calculated from the month in which the amounts are actuallyincurred.
5.14 Accounts receivables financing
The accounts receivables financing of the Company refer to the notes receivables measured at fairvalue through other comprehensive income on the balance sheet date. For more details, see Note 5.11Financial instruments.
5.15 Other receivables
The types of portfolios for which bad debt provisions are made according to the portfolios of credit riskcharacteristics and the basis for determining them:
As for other receivables, regardless of whether there is a significant financing component, the Companyalways calculates the expected credit loss through the exposure at default and expected credit loss ratein the next 12 months or over the entire life based on the current situation and prediction of futureeconomic situation consulting historical credit loss experience, and the resulting increase or reversal ofprovision for loss shall be included in the current profit or loss as gains or losses on impairment. Theaccrual method is as follows:
(1) When there is objective evidence showing that the other receivable has incurred credit impairment,the Company shall make bad debt provision for the other receivable and recognize the expected creditloss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluatedat a reasonable cost, the Company shall divide the other receivables portfolio according to credit riskcharacteristics and measure the expected credit loss based on portfolios.
| Portfolio name | Provision method |
| Risk portfolio | Expected credit loss |
| Other portfolio | No bad debt provision |
Other portfolio refers to the normal intercourse funds among the Company and businesses undercommon control, the recovery of which are controllable with no risks. Thus, no bad debt provision wasmade.The Company combines the other receivables classified as risk portfolio in accordance with similarcredit risk characteristics, and calculates the expected credit loss through the exposure at default andexpected credit loss rate in the next 12 months or over the entire life based on the current situation andprediction of future economic situation consulting historical credit loss experience.
5.16 Contract assets
The Company presents contract assets or contract liabilities on the balance sheet according to therelationship between the fulfillment of its contract performance obligations and its customers’ payment.
Considerations that the Company has the right to collect for commodities transferred or servicesprovided to customers (and such right depends on other factors than time lapses) are presented ascontract assets. The Company presents the right possessed to collect consideration from customersunconditionally (only depending on the passing of time) as accounts receivable. Refer to “The methodof determining the expected credit loss of accounts receivables and accounting treatment method” forthe detail on the Company’s method of determining the expected credit loss of contract assets andaccounting treatment method.
5.17 Inventory
(1) Classification of inventory
Inventories are classified as: raw materials, goods in progress (including semi-finished goods), stockcommodities, and dispatched inventories.
(2) Measurement method of acquiring and dispatching inventories
The standard cost is used for daily accounting of raw materials, and the difference of material costshould be carried forward on a monthly basis to adjust the standard cost into the actual cost; The goodsin progress (including semi-finished goods) shall be accounted according to the actual cost, and theweighted average method shall be used when they are received and delivered. The actual cost of theinventory at the end of the month above shall be taken as the standard cost, and the delivery shall bepriced according to the standard cost. At the end of the month, the standard cost of the inventory at theend of the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Determining criteria and method of provision for stock obsolescence
At the end of the period, inventory is measured according to the lower of cost and net realizable value.The difference between inventory cost and net realizable value is higher than the provision for stockobsolescence, which is recorded into current profit and loss. For inventories that are related to productranges produced and sold in the same district or used for the same or similar ultimate purpose and aredifficult to be measured separately from other inventories, the Company provides for stockobsolescence as a whole. For inventories that have large quantities but low value, the Companyprovides for stock obsolescence on a category basis.
The materials held for production shall be measured at cost if the net realizable value of the finished
products is higher than the cost. If a decline in the value of materials shows that the net realizable valueof the finished products is lower than the cost, the materials shall be measured at the net realizablevalue.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Packing materials and low-cost consumables are amortized in full at once.
5.18 Assets held for sale
(1) Determining criteria for non-current assets held for sale or disposal groupsThe Company shall classify the non-current assets or disposal group meeting the following conditionsinto the held-for-sale category: The assets (or disposal group) must be available for immediate sale inits present condition subject only to terms that are usual and customary for sales of such assets (ordisposal groups); Its sale must be highly probable.; The Company has already made a decision todispose the component and has a commitment from the purchaser, the transfer will be completed withinone year.
The non-current assets or disposal group acquired by the Company for resale shall be divided into theheld-for-sale category on the acquisition date if it meets the condition that "the sale is expected to becompleted within one year" and if it is likely to meet other conditions for the held-for-sale category withina short period (usually three months).
Due to one of the following reasons that the Company is unable to control, leading to the transactionsuncompleted with non-related party within one year, and the Company still commits to sale non-currentassets or disposal groups, it can continue to account for non-current assets or disposal groups as held-for-sale: the buyer or any other party accidentally set sale extension condition. The Company has totake action in time according to these conditions and the extension problem is expected to be solvedwithin one year; In rare cases, the Company has taken the necessary steps and re-satisfy the hold forsale category condition within the first year for the new circumstances which caused it unable tocomplete the sale of the non-current assets or disposal group within one year.
(2) Accounting treatment of non-current assets or disposal groups held for sale
① Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measureat balance sheet date subsequently, the impairment loss should be recognized if the book value is
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss,the provision for assets held for sale need to be recognized at the same time.
For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date,they shall be measured as the lower of the initial measurement amount and the net amount afterdeducting the selling expenses from the fair value under the assumption that it is not divided into held-for-sale categories at the initial measurement. Except for the non-current assets or the disposal groupsobtained in the enterprise merger, the difference caused by the non-current assets or the disposalgroups taking the net amount after the fair value minus the selling expenses as the initial measurementamount shall be recorded into the current profit and loss.
For the impairment of disposal group, it should write off goodwill if existing, and then write down therelated assets proportionally.
Depreciation or amortization should cease for the non-current asset held for sale. Interest and othercharges on liabilities in the disposal groups held for sale continue to be recognized.
② Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet dateincreases after the fair value minus the selling expenses, the amount previously written down shall bereversed, and the amount of the impairment loss recognized after being classified as the held-for-saleshall be reversed, and the reversed amount shall be included in the current profit and loss. Theimpairment loss recognized before the classification of the held-for-sale shall not be reversed.
If the net amount of the disposal groups held for sale on the subsequent balance sheet date increasesafter the fair value deducting the selling expenses, the amount previously written down shall bereversed, and the amount of the impairment loss recognized as non-current assets after beingclassified as the held-for-sale shall be reversed, and the reversed amount shall be included in thecurrent profit and loss. The book value of the goodwill that has been written down and the impairmentlosses recognized before the classification of the held-for-sale shall not be reversed.
The subsequent reversed amount of the impairment loss recognized by the disposal groups held forsale shall be increased in proportion to the book value of non-current assets except goodwill in thedisposal groups.
③ Recognition criteria and presentation of discontinued operations
Non-current assets or disposal groups that are no longer divided into held-for-sale category or non-
current assets are removed from disposal groups held for sale because of no longer meeting thecondition of classification of held-for-sale, they are measured at lower of the following two: book valuebefore being classified as the held-for-sale considering depreciation, amortization or impairment thatshould have been recognized under the assumption that it is not divided into held-for-sale categories;and recoverable amount.
When terminating the recognition of the non-current assets held for sale or the disposal groups, theunrecognized gains or losses shall be recorded into the current profit and loss.
5.19. Long-term equity investment
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control withother participants on an arrangement according to relevant conventions, which exists only whendecisions about the relevant activities require the unanimous consent of the parties sharing control.This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separateentity and the Company is judged to have rights to the net assets of such a separate entity according tothe relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted bythe equity method. If the Company is judged to be not entitled to the net assets of the separate entityaccording to relevant conventions, the separate entity shall be regarded as a joint venture and theCompany shall recognize the items related to the shares of the joint venture and perform accountingtreatment in accordance with relevant accounting standards.The term ‘significant influence’ refers to the power to participate in decision-making on the financial andoperating policies of the investee, but with no control or joint control over the formulation of thesepolicies. The Company judges that it has a significant impact on the invested entity through one or moreof the following situations and taking all the facts and circumstances into consideration:
① Dispatch representatives to the board of directors or similar authorities of the investee.
② To participate in the financial and business policy making process of the investee.
③ Significant transactions with the investee.
④ Dispatch management personnel to the investee.
⑤ To provide key technical data to the investee.
(2) Determination of the initial investment cost
① Long-term equity investment resulting from combination
Business combination under common control：For the long-term equity investments obtained by cashpaid, non-monetary assets paid or assumed liabilities and the equity securities issued by the acquirer,on the merger date, the initial investment cost of long-term equity investment shall be taken as the
share of the owner's equity of the investee in the book value of the final control party's consolidatedfinancial statements. If the investee under business combination under common control can becontrolled due to additional investment or other reasons, the initial investment cost of long-term equityinvestment shall be determined on the merger date according to the share of the net assets of theinvestee in the book value of the final control party's consolidated financial statements. The differencebetween the initial investment cost of the long-term equity investment on the merger date and sum ofthe book value of the long-term equity investment before the merger and the new consideration ofacquiring shares on the merger date shall be recorded to adjust the equity premium. If the equitypremium is insufficient to be written down, the retained earnings shall be written down.
Business combination not under common control：The Company takes the initial investment cost oflong-term equity investment as the merger cost determined on the purchase date. If the investee can becontrolled under business combination not under common control due to additional investment or otherreasons, the previous book value of the equity investment held plus the sum of the newly addedinvestment cost shall be taken as the initial investment cost calculated according to the cost method.
② Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value asthe initial investment costs.
For the long-term equity investments acquired by the issue of equity securities, the initial investmentcost shall be the fair value of the equity securities issued.
For long-term equity investments obtained by non-monetary assets exchange, under the condition thatan exchange of non-monetary assets is of commerce nature and the fair value of assets exchangedcan be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assetstraded out, unless there is conclusive evidence indicating that the fair value of the assets traded in ismore reliable; if the above conditions are not satisfied, initial investment costs of long-term equityinvestments traded in shall be recognized at the book value of the assets traded out and the relevanttaxes and surcharges payable.
For long-term equity investments obtained by debt restructuring, the Company recognizes the fair valueof shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
① Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method, except cash dividends or profits declaredbut not yet distributed which are included in the actual payments or the consideration actually paid forthe investment, the cash dividends or profits declared by the investee shall be recognized as theinvestment income irrespective of net profits realized by the investee before investment or afterinvestment.
② Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee, theequity method is adopted for accounting. For long-term equity investments measured at the equitymethod, if the initial investment costs are higher than the investor’s attributable share of the fair value ofthe investee’s identifiable net assets, no adjustment will be made to the initial costs of the long-termequity investments; if the initial investment costs are lower than the investor’s attributable share of thefair value of the investee’s identifiable net assets, the difference shall be recognized in current profit andloss.
The Company shall, according to the shares of net profits and other comprehensive income realized bythe investee that shall be enjoyed or borne by the Company, recognize the profit and loss on theinvestments and adjust the book value of the long-term equity investments. When recognizing the netprofits and losses and other comprehensive income of the investee that the Company shall enjoy orbear, the Company shall make a recognition and calculation based on the net book profits and losses ofthe investee after appropriate adjustments. However, where the Company is unable to obtain therelevant information due to failure to reasonably determine the fair value of the investee’s identifiableassets, minor difference between the investee’s identifiable assets and the book value thereof or otherreasons, the profits or losses on the investments shall be directly calculated and recognized based onthe net book profits and losses of the investee. The Company shall calculate the part distributed fromcash dividends or profits declared by the investee and correspondingly reduce the book value of thelong-term equity investments. When recognizing the income from investments in associates and jointventures, the Company shall write off the part of incomes from internal unrealized transactions betweenthe Company and associates and joint ventures which are attributable to the Company and recognizethe profit and loss on investments on such basis. Where the losses on internal transactions betweenthe Company and the investee are impairment of related assets, full amounts of such losses shall berecognized. Profit and loss from internal unrealized transactions between the Company’s subsidiariesincluded into the combination scope and associates and joint ventures shall be written off according tothe above principles and the profit and loss on investments thereafter shall be recognized on such basis.
When the share of net loss of the investee attributable to the Company is recognized, it is treated in thefollowing sequence: Firstly, write off the book value of the long-term equity investments; where the bookvalue of the long-term equity investments is insufficient to cover the loss, investment losses are
recognized to the extent that book value of long-term equity which form net investment in the investeein other substances and the book value of long-term receivables shall be written off; after all the abovetreatments, if the Company still assumes additional obligation according to investment contracts oragreements, the obligation expected to be assumed should be recognized as provision and includedinto the investment loss in the current period. If the investee is profitable in subsequent accountingperiods, the Company shall treat the loss in reverse order against that described above after deductingunrecognized share of loss: i.e. write down the book value of the recognized provision, then restore thebook value of long-term interests which substantially form net investments in the investee, then restorethe book value of long-term investments, and recognize investment income at the same time.
5.20. Investment property
Measurement model of investment propertyCost modelMethod of depreciation or amortizationInvestment property is the property that is held to earn rent or capital appreciation or both and can bemeasured and sold separately. The Company’s investment property includes land use right already rent,land use right held for appreciation and then sold, and buildings already rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investmentproperty and the cost of the investment property that can be measured reliably, the Company willinitially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directlyattributable to the asset;The cost of self-built investment property consists of the necessary expenses incurred before the assetreaches the intended use condition;The cost of the investment property obtained by other means shall be recognized in accordance withrelevant accounting standards.
(2) Subsequent measurement
In general, the Company adopts the cost model to measure the follow-up expenditure of investmentproperty. The depreciation or amortization of investment property shall be carried out in accordancewith the accounting policies for the Company's fixed assets or intangible assets.
If there is solid evidence suggests that the investment property acquired can be measured at fair valuecontinuously and reliably, the Company can use fair value model for subsequent measurement. For theinvestment property measured at fair value model, the Company does not provide depreciation or
amortization and adjusts its book value based on the fair value of investment property at the balancesheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property, the relevant investment property willbe transferred to other assets.
5.21. Fixed assets
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providingservices, renting or business management with useful life exceeding one accounting year. Fixedassets are recognized when the following criteria are satisfied simultaneously: It is probable that theeconomic benefits relating to the fixed assets will flow into the Company; the cost of the fixed assetscan be measured reliably.
(2) Depreciation of fixed assets
| Category | Depreciation method | Estimated useful life (Year) | Estimated residual value rate (%) | Annual depreciation rate (%) |
| Buildings and Constructions | Straight-line method | 10－45 | 5% | 9.50－2.11 |
| Special equipment | Straight-line method | 5－35 | 5% | 19.00－2.71 |
| Universal equipment | Straight-line method | 4－25 | 5% | 23.75－3.80 |
| Transportation equipment | Straight-line method | 6 | 5% | 15.83 |
| Other equipment | Straight-line method | 4－16 | 5% | 23.75－5.94 |
Except for fixed assets still in use after full depreciation, the Company depreciates all fixed assets andcalculates the depreciation in the straight-line depreciation method.Based on the nature and use of fixed assets, the Company determines their service life and estimatednet salvage value and reviews their service life, estimated net salvage value and depreciation methodat the end of the year. Changes in the service life, estimated net salvage value and depreciationmethod of the same type of assets are treated as changes in accounting estimation.
(3) Impairment test method and impairment provision accrued method of fixed assetsAt the end of the period, the fixed assets shall be measured at the lower of the book value and therecoverable amount. If the recoverable amount of fixed assets is lower than the book value due to acontinuous decline in the market value, or technological obsolescence, damage, or long-term idleness,a provision for impairment of the fixed assets shall be made for the difference between the recoverableamount and the book value of individual fixed assets. If the recoverable amount of the individual assetis difficult to estimate, the Company will determine the recoverable amount of the asset group based onthe asset group to which the asset belongs. The impairment losses on fixed assets must not bereversed in subsequent accounting periods once recognized.
For fixed assets for which depreciation provision has been made, the depreciation rate and depreciationamount shall be remeasured according to the book value of the fixed assets (the original price of fixedassets minus accumulated depreciation and provision for impairment), and the remaining service life.On the balance sheet date, the fixed assets shall be measured at the lower of the book value and therecoverable amount.
5. 22. Construction in progress
(1) Construction in progress refers to various construction and installation works carried out for theconstruction or repair of fixed assets, including the actual expenditure incurred in new construction,reconstruction and expansion, and the net value of fixed assets transferred from the reconstruction andexpansion projects.
(2) Construction in progress is accounted on an individual project basis with actual cost valuationmethod. The borrowing costs incurred before the projects reach the intended use condition shall beincluded in the project cost. The fixed assets shall be carried forward in the month when the project isqualified for acceptance and delivery for use. For those that have reached the intended use conditionbut have not yet completed the final account, from the date of reaching the intended use condition,according to the project budget, construction cost or the actual cost of the project, the cost transferredto the fixed assets shall be determined according to the estimated value, and the depreciation shall berecognized; After the completion of the final account, the original provisional value shall be adjustedaccording to the actual cost, but the amount of depreciation accrued shall not be adjusted.
(3) The loan interest and related expenses incurred during the construction period shall be capitalizedinto the cost of the construction in Progress.
(4) On the balance sheet date, the construction in progress is recognized at the lower of book value andrecoverable amount.
5. 23. Borrowing costs
(1) Scope of borrowing costs and its capitalization conditions
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expensesdirectly attributable to the assets eligible for capitalization, including interest thereon, amortization ofdiscounts or premiums, ancillary expenses and exchange differences incurred from foreign currencyloan, etc.Borrowing costs are capitalized when the following three conditions are met simultaneously: ① theasset expenditure has occurred, ② the borrowing costs have occurred, ③ the purchase andconstruction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed foracquiring and constructing or producing assets eligible for capitalization, borrowing costs of special loanactually incurred in the current period less the interest income of the loans unused and deposited inbank or return on temporary investment should be recognized as the capitalization amount of borrowingcosts. As for general loans used for acquiring and constructing or producing assets eligible forcapitalization, the interest of general loans to be capitalized should be calculated by multiplying theweighted average of asset disbursements of the part of accumulated asset disbursements in excess ofspecial loans by the capitalization rate of used general loans. During the period of capitalization, thecapitalized amount of interest of each accounting period shall not exceed the current actual interest ofthe relevant loans. Where there are discounts or premiums on loans, the amounts of interest for eachaccounting period should be adjusted taking account of amortizable discount or premium amounts forthe period by effective interest method. Auxiliary expenses incurred from special loans before theacquired or constructed assets eligible for capitalization reach the working condition for their intendeduse or sale should be capitalized when they incur and charged to the costs of assets eligible forcapitalization; those incurred after the acquired or constructed assets eligible for capitalization reach theworking condition for their intended use or sale should be recognized as costs according to theamounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
① For a special loan for the purchase and construction of fixed assets, the capitalization rate is theinterest rate of the loan;
② For more than one special loan for the acquisition and construction of fixed assets, the capitalizationrate is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization areinterrupted abnormally and this condition lasts for more than three months, the capitalization ofborrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period, and the capitalization of borrowing costs continues when theacquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assetseligible for capitalization have reached the working condition for their intended use or sale. Borrowingcosts incurred after the assets eligible for capitalization have reached the working condition for theirintended use or sale should be recognized as the current profit and loss when they incur. If parts of theacquired and constructed or produced assets are completed separately but the assets cannot be usedor sold externally until overall completion, the capitalization of borrowing costs should cease at the timeof overall completion of the said assets.
5.24. Intangible assets
(1) Useful life and the basis for its determination, estimation, amortization methodology orreview proceduresIntangible assets refer to identifiable non-monetary assets that are owned or controlled by the Companywithout a physical form.
① Measurement method
A. Costs of intangible assets purchased include purchase price, related tax and expenses and otherexpenditure that can be distributed to the asset directly to reach its expected use.B. Intangible assets invested by investors shall be valued at the value agreed upon in the investmentcontract or agreement;C. Expenses on the research phase of internally researched and developed intangible assets shall beincluded in the current profit and loss when they incur; The expenditures incurred in the developmentstage of the internal research and development projects shall be recognized as intangible assets whenthe following conditions are met; otherwise, they shall be recorded into the current profit and loss whenthey incur.a. It is technically feasible to finish intangible assets for use or sale;b. It is intended to finish and use or sell the intangible assets;c. The usefulness of methods for intangible assets to generate economic benefits shall be proved,including being able to prove that there is a potential market for the products manufactured by applyingthe intangible assets or there is a potential market for the intangible assets themselves or the intangibleassets will be used internally;d. It is able to finish the development of the intangible assets, and able to use or sell the intangibleassets, with the support of sufficient technologies, financial resources and other resources.e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.D. If payment of the purchase price of intangible assets can be deferred and exceeds normal creditconditions, the purchase has the nature of finance in fact and cost of the intangible asset shall bedetermined on the basis of present value of the purchase price. The difference between the amountactually paid and the present value of the purchase price should be recorded into current profit or lossother than those should be capitalized during the credit period.
② Useful life and the basis for its determination, estimation, amortization methodology or reviewproceduresFor intangible assets with limited useful life, amortization shall be carried out according to the straight-line method within the period that brings economic benefits to the enterprise. At the end of each period,the useful life and amortization method of intangible assets with limited service life shall be reviewed. Ifthere are differences with the original estimates, corresponding adjustments shall be made.Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossibleto foresee the term in which intangible assets bring economic benefits to the enterprise. Intangibleassets with uncertain useful life shall not be amortized during the holding period, and the life ofintangible assets shall be reviewed at the end of each period. If it is still uncertain after the review at theend of the period, the impairment test shall continue during each accounting period. At the end of eachperiod, the useful life of intangible assets with uncertain service life shall be reviewed.
③ Impairment test
On the balance sheet date, intangible assets are valued at the lower of book value and recoverableamount.
(2) The scope of research and development expenditure collection and the related accountingtreatmentThe R&D expenditure of the Company mainly include the materials consumed in the implementation ofR&D activities, salaries of R&D department employees, depreciation and amortization of assets such asequipment and software used in research and development, R&D testing, R&D technical service fees,and licensing fees.The expenditures incurred in the development stage of the research and development projects shall berecognized as intangible assets when the following conditions are met; otherwise, they shall berecorded into the current profit and loss when they occur.
① It is technically feasible to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applyingthe intangible assets or there is a potential market for the intangible assets themselves or the intangibleassets will be used internally;
④ It is able to finish the development of the intangible assets, and able to use or sell the intangibleassets, with the support of sufficient technologies, financial resources and other resources.
⑤ The expenditure attributable to the intangible asset during its development phase can be measuredreliably.Development expenditures that have been recorded into profit and loss in previous periods are notrecognized as assets in subsequent periods. The capitalized expenditure in the development stage islisted as development expenditure in the balance sheet, and it will be recorded into intangible assetsfrom the date when the project reaches its intended purpose.
5. 25. Long-term assets impairment
On the balance sheet date, the Company makes a judgment on whether there are signs of possibleimpairment of long-term assets. If there are impairment indicators of non-current assets, the Companyestimates the recoverable amount based on individual asset. If recoverable amount of individual assetis difficult to be estimated, the Company should recognize the recoverable amount of the asset groupwhich the individual asset belongs to.The recoverable amount is the higher of fair values less costs of disposal and the present values of thefuture cash flows expected to be derived from the asset.If the measurement result of recoverable amount shows that recoverable amount of the non-currentassets is less than its book value, the book value shall be written down to the recoverable amount, andthe amount written down shall be recognized as the impairment loss of assets, recorded into the currentprofit and loss, and the corresponding impairment provision of assets shall be made at the same time.Once impairment loss stated above is recognized, reversal is not allowed in the subsequent accountingperiods.After the recognition of the impairment loss, the depreciation or amortization expense of the impairmentasset shall be adjusted accordingly in the future period so as to systematically apportion the adjustedbook value of the asset (deducting the expected net salvage value) within the remaining service life ofthe asset.The Company should perform impairment test for goodwill and intangible assets with indefinite life atleast at each year end, no matter whether there is impairment indicator.Goodwill shall be combined with its related asset group or asset group portfolio so as to perform animpairment test. When the Company performs an impairment test on relevant asset group or assetgroup portfolio including goodwill, if there are signs of impairment, the Company shall firstly perform animpairment test on asset group or asset group portfolio excluding goodwill and calculate therecoverable amount, and compare with the related book value, recognize the corresponding impairment
loss. Then, the Company performs an impairment test on relevant asset group or asset group portfolioincluding goodwill, and compares the book value of the relevant asset groups or asset group portfolio(including proportional book value of goodwill) with its recoverable amount. If the recoverable amount ofrelevant asset group or asset group portfolio is less than its book value, the Company shall recognizeimpairment loss of goodwill.
5. 26. Long-term deferred expenses
Long-term deferred expenses shall be initially measured according to the actual costs incurred. It isamortized using the straight-line method over the beneficial period. If it cannot benefit the followingaccounting period, the amortized value of the item that has not been amortized will be transferred to thecurrent profit and loss.
5. 27. Contract liabilities
The recognition method of contract liabilities: The Company presents contract assets or contractliabilities on the balance sheet according to the relationship between the fulfillment of its contractperformance obligations and its customers’ payment. Obligations to be fulfilled by the Company oftransferring commodities or providing services to customers, as the Company has received or shouldreceive customers’ considerations, are presented as contract liabilities.
5. 28. Employee benefits
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after thereporting period in which the employee provided relevant services, excluding the compensation foremployment termination. Accrued short term benefits will be recognized as liability during theaccounting period in which the employee is providing the relevant service to the Company. The liabilitywill be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
① Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemploymentinsurance calculated according to the local payment base and proportion. The amount shall be includedinto the profit and loss or the relevant assets cost for the accounting period in which the employeeprovides the service to the Company.
② Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method, theCompany will record the benefit obligation generated by the defined benefit plan belonging to the period
during in which the employee provides the service into the current profit and loss or the relevant assetscost.The deficit or surplus resulting from the present value minus the fair value of the assets of a definedbenefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in thedefined benefit plan, the net assets of the defined benefit plan shall be measured at the lower of thesurplus and the upper limit of assets of the defined benefit plan.All defined benefit plan obligations, including those expected to be paid within the twelve monthsfollowing the end of the annual reporting period in which the employee provides the service, arediscounted based on the market yield and high quality corporate bonds in an active market that matchthe duration and currency of defined benefit plan obligations on the balance sheet date.The service costs generated by the defined benefit plan and the net interest on net liabilities or netassets of the defined benefit plan are included in the current profit and loss or relevant assets cost;Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan areincluded in other comprehensive income and are not reversed to profit and loss in subsequentaccounting periods.At the time of settlement of the defined benefit plan, the settlement gains or losses shall be recognizedaccording to the difference between the present value of the obligations of the defined benefit plan andthe settlement price determined on the settlement date.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period onthe earlier date of the two following circumstances: a. When the Company is not able to withdraw thebenefits from termination of employment or resignation persuasion unilaterally; b. When the Companyrecognizes costs and fees relevant to reforming the termination benefits payment. As for the terminationbenefits that cannot be fully paid within 12 months after the end of the annual report period, theCompany shall choose an appropriate discount rate and record it into current profit and loss based on it.
(4) Accounting treatment method of other long-term employee benefitsOther long-term employee benefits are all employee benefits other than short-term benefits, post-employment benefits and termination benefits.Other long-term employee benefits provided by the Company to the employee that meet the conditionsof the defined contribution plan shall be treated in accordance with the same principles of the definedcontribution plan; If the conditions for defined benefits are met, net liabilities or net assets of other long-term employee benefits shall be recognized and measured in accordance with the relevant principles ofthe defined benefits plan.
5. 29. Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the contingent obligations meet the following conditions simultaneously, the Company shall recognizeit as an estimated liability:
This obligation is the Company's current obligation; the performance of this obligation is highly likely toresult in an outflow of economic benefits from the Company; The amount of the obligation can bemeasured reliably.
(2) Measurement method of estimated liabilities
The Company's estimated liabilities are initially measured in terms of the best estimate of theexpenditure of fulfilling the relevant current obligations.For determining the best estimate, the Company takes various factors into account such as the risk,uncertainty and time value of money related to contingencies. If the time value of money has asignificant impact, the best estimate is determined by discounting the relevant future cash outflows.The best estimate is processed as follows:
Where there is a continuous range (or range) of required expenditures and the probability of theoccurrence of various results within the range is same, the best estimate is determined according to themean of the middle value of the range, namely the mean value of the upper and lower limits.Where there is no continuous range (or range) of required expenditures, or where there is a continuousrange but the possibility of various outcomes within the range is different, if the contingencies involve asingle item, the best estimate is determined according to the most likely amount; If the contingenciesinvolve more than one item, the best estimate is calculated and determined according to variouspossible results and relevant probabilities.Where all or part of the expenses required for the liquidation of the estimated liabilities of the Companyare expected to be compensated by a third party, the amount of compensation shall be recognized asan asset when it is basically confirmed that it can be received, and the confirmed amount ofcompensation shall not exceed the book value of the estimated liabilities.
5. 30. Share-based payment
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related with employees, the equity instrument is measured atfair value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken bythe Company.For the fair value of the stock option granted, the fair value is determined by using the stock optionpricing model, and the following factors are taken into account: the current price of the underlyingshares, the exercise price of the option, the risk-free interest rate within the period of the option, theoption life, and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercisedFor the equity-settled share-based payment settled immediately after the grant, the fair value of theequity instrument shall be included in the relevant costs or expenses on the grant date, and the capitalreserve shall be increased accordingly. Grant date means the date on which the share-paymentagreement is approved.For the equity-settled share-based payment, in which the services during waiting period are completedand the performance conditions are met, in return for services of employees, on each balance sheetdate during waiting period, the current obtained service shall be included in the relevant costs orexpenses and the capital reserves in accordance with the fair value of the equity instruments on thegrant date, based on best estimate of the number of vested equity instruments, and the subsequentchanges in fair value shall not be recognized. On each balance sheet date during waiting period, theCompany makes the best estimate based on the latest available employee number change and othersubsequent information, and modifies the number of equity instruments for the estimated vesting. Onthe vesting date, the final expected number of vesting instruments is the same as the actual number ofvesting instruments.
(4) Relevant accounting treatment of implement, modification and termination of share-based paymentplanFor equity-settled share-based payment, no adjustments will be made to the recognized costs and totalowners' equity after the vesting date. On the vesting date, the Company shall recognize the sharecapital and the equity premium according to the exercise situation, and carry forward the capital reserverecognized in the waiting period.No matter how it modifies the terms and conditions of the granted equity instruments or it cancels thegranted equity instruments or its settlement, the equity instruments granted by the Company shall berecognized at fair value on the grant date and it measures obtained the corresponding services, unlessit cannot be vested because it cannot meet the vesting conditions of equity instruments (except marketconditions).
5.31. Revenue
Accounting policies for recognition and measurement of revenue disclosed by type of business
(1) Basic principles of revenue identification
The Company recognizes revenue when it has fulfilled the performance obligations under the contract,that is, when the customers obtain the control of relevant goods or services, at the transaction priceallocated to the performance obligations.Performance obligations refer to the Company's promise that it will transfer clearly distinguishablegoods or services to customers under the contract.Obtaining control of related goods refers to that customers can control the use of the goods and obtainalmost all the economic benefits from the goods.The Company will evaluate the contract on the contract start date, identify each individual performanceobligation contained in the contract, and judge whether each individual performance obligation will beperformed within a certain period of time or at a certain point in time. If one of the following conditions ismet, and the performance obligation is performed within a certain period of time, the Company willidentify revenue within a period of time according to the performance progress: 1) The customers obtainand consume the economic profits while the Company performs the contract. 2) The customers cancontrol the products under construction during the performance of the Company; 3) The productsproduced during the performance of the Company cannot be replaced, and the Company has the rightto collect payment for the completed performance accumulated during the entire contract period.Otherwise, the Company will identify revenue when the customers obtain control rights of the relevantgoods or services.For the performance obligations performed within a certain period of time, the Company will apply theinput-output method to identify the appropriate performance progress based on the nature of the goodsand services. The input-output method is to identify the performance progress based on the value of thegoods that have been transferred to the customers to the customers. When the performance progresscannot be reasonably identified and the Company's incurred costs are expected to be compensated,the Company will identify the revenue according to the amount of the incurred costs until theperformance progress can be reasonably identified.
(2) The methods of revenue identification
The Company primarily sells baijiu, which involve performance obligations fulfilled at a certain point intime. For the recognition of the revenue of domestic products, the following conditions must be met:
The Company has delivered the products to the customer as per the contract, and the customer hasaccepted the goods; payment has been received or a receipt voucher has been obtained, and therelevant economic benefits are likely to flow in; and control of the goods has transferred to the customer.The following requirements must be met to recognise the revenue of export products: The Companyhas declared the products according to the contract, obtained the bill of lading, received the payment orobtained the receipt voucher, and relevant economic benefits are likely to flow in, and control of thegoods has transferred to the customer. The following requirements must be met to recognise therevenue of sales through third-party platforms or company-owned websites: The sales platform isresponsible for delivering the goods to the customer, or the Company entrusts a logistics company to
deliver the goods to the customer, and revenue is recognised upon receipt of the platform settlementstatement or upon delivery of the goods.
Different business models for the same type of business involve different revenue recognition andmeasurement methodsN/A
5.32. Contract costs
Contract costs comprise incremental costs incurred as the Company obtains a contract, and costs forcontract performance. Incremental costs incurred as the Company obtains a contract refer to thosecosts which will not incur without entering into a contract (such as sales commission). If it is expectedthat the costs are recoverable, the Company will recognize the costs incurred to obtain a contract asone form of assets. In case that the term of asset amortization is shorter than one year or one normaloperating cycle, the costs will be recognized as profit and loss of the current period after occurrence.
If the costs incurred from contract performance fall outside the inventory or the scope of otherenterprise accounting standards and satisfy all of the following conditions, the Company will recognizethe costs for contract performance as assets: a) The costs are directly related to one existing contractor contract that is expected to be obtained; b) The costs enrich the Company's resources for futurecontract performance (including continual fulfillment); c) The costs are estimated to be recovered.
Assets recognized from costs incurred to obtain a contract and costs for contract performance(hereinafter referred to as "assets related to contract costs") will be amortized based on the basis thesame with the income from commodities or services related to the assets, and will be recognized asprofit and loss of the current period. In case that the book value of assets related to contract costs ishigher than the difference of the two items below, the Company will set aside provisions for assetsimpairment to deal with the extra part, and recognize that part as impairment losses: a) Estimatedresidual consideration to be obtained from transfer of commodities or services related to the assets; b)Estimated costs incurred from transfer of the relevant commodities or services.
5. 33. Government grants
Government grants are monetary assets and non-monetary assets acquired free of charge by theCompany from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assetsGovernment grants related to assets are government grants that are acquired by the Company andused for forming long-term assets through purchasing and constructing or other ways. If thegovernment documents do not clearly specify the target of the subsidy, the Company shall separately
explain judgment basis of classifying the government grants into the government grants related toassets or income.Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives(the period of depreciation and amortization) of the relevant assets from the month of commence ofdepreciation or amortization when the relevant assets reaching the intended use condition, andincluded in the current profit or loss. However, government grants measured at the nominal amountshall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to incomeGovernment grants related to income are government grants other than government grants related toassets;Accounting method:
① If it is used to compensate the Company’s relevant expenses or losses in future periods, it should berecognized as deferred income and included into the current profit and loss or written off of the relatedcosts when the relevant expenses, losses are recognized.
② If it is used to compensate the Company’s relevant expenses or losses incurred, it is directlyincluded into the current profit and loss on acquisition or written off of the related costs.
③ Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for thegovernment grants and the Company can receive the grants.
④ Measurement of government grants
If a government grant is a monetary asset, it shall be measured in the light of the received or receivableamount. If a government grant is a non-monetary asset, it shall be measured at its fair value; and if itsfair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
5. 34. Deferred tax assets or deferred tax liabilities
The Company adopts the balance sheet liability method to account for income tax.The Company recognizes deferred tax assets when the following conditions are met simultaneously:
(1) Temporary differences are highly likely to be reversed in the foreseeable future;
(2) Taxable income that may be used to offset the deductible temporary difference is likely to beobtained in the future and is limited to the amount of taxable income that is likely to be obtained.On each balance sheet date, the current income tax liabilities (or assets) incurred in the current periodor prior periods shall be measured by the Company in light of the expected payable (refundable)amount of income taxes according to the tax law; The deferred income tax assets and deferred incometax liabilities shall be measured at the tax rate applicable to the period during which the assets areexpected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheetdate. The current income tax and deferred income tax shall be recorded into the current profit and lossas income tax expense or income, except for the income tax generated from the enterprise merger,transactions or events directly recognized in the owner's equity.
Basis for deferred income tax assets and deferred income tax liabilities presented as a net amount afteroffset:
When the following conditions are simultaneously met, deferred income tax assets and deferred incometax liabilities are presented as a net amount after offset:
(1) The enterprise has the legal right to settle the current income tax assets and current income taxliabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities were related to the income tax leviedby the same tax administration department on the same taxpayer or different taxpayers, but during theperiod when each significant deferred income tax assets and liabilities would be reversed in the future,the involved taxpayer intended to settle the current income tax assets and liabilities on a net basis or toacquire assets and settle liabilities at the same time.
5. 35. Lease
(1) Accounting treatment with the Company as lessee
① Judgment criteria and accounting treatment for short-term leases and leases of low-value assets asa lessee for simplified treatmentOn the beginning date of the lease term, the Company will recognize the lease with a lease term notexceeding 12 months and exclude the purchase option as a short-term lease. Leases with a valuebelow CNY 40,000 when a single leased asset is a brand-new asset are identified as low-value assetleases. If the Company sublets or expects to sublet the leased assets, the original lease shall not bedeemed as a low-value asset lease.The Company records the payments of short-term and low-value asset leases incurred during eachperiod of the lease term in the relevant asset costs or the profit or loss for the current period by thestraight-line method.The Company will recognize right-of-use assets and lease liabilities on the inception date of the leaseterm, excluding the above short-term and low-value asset leases.
② Right-of-use assets
Right-of-use assets are initially measured at costs, including: A. The initial measurement amount oflease liabilities; B. If there is a lease incentive for the lease payment paid on or before the start date of
the lease term, the relevant amount of the lease incentive already enjoyed shall be deducted; C. Initialdirect expenses incurred by the Company; D. The expected cost to be borne by the Company in orderto dismantle and remove the assets leased, restore original state of the place where the assets leasedare in, or restore the assets leased to the state stipulated in the lease terms.
③ Lease liabilities
The Company initially measures the lease obligation at the present value of the lease paymentsoutstanding at the commencement date of the lease term. When calculating the present value of leasepayments, the Company uses the interest rate implicit in lease as the rate of discount. If the interestrate implicit in lease cannot be determined, the Company’s incremental lending rate is used as the rateof discount.After the commencement of the lease term, the Company uses the cost model for subsequentmeasurement of right-of-use assets, depreciates right-of-use assets on a straight-line basis, calculatesthe interest expense on the lease liability within the lease term and includes it in the current profit orloss, unless such interest charge is stipulated to be included in the underlying asset cost. Variable leasepayments that are not included in the measurement of the lease obligation should be included in thecurrent profit or loss when they are actually incurred, unless such payments are stipulated to beincluded in the underlying asset cost.After the commencement of the lease term, the Company remeasures the lease liability and adjusts thecorresponding right-of-use asset, and if the carrying value of the right-of-use asset has been reduced tozero but the lease liability is subject to further reduction, the difference is recorded in current profit orloss: (1) When there is a change in the valuation of the purchase option, renewal option or terminationoption, or actual exercise, the Company remeasures the lease liabilities at the present value of thelease payments after the change and the revised discount rate; (2) When there is a change in theactual fixed payment, the estimated payable of the residual value of the guarantee, the index or rateused to confirm the lease payment, the Company calculated the present value based on the changedlease payment amount and the original discount rate to remeasure the lease liabilities. However, wherechanges in lease payments arise from changes in floating interest rates, a revised discount rate wasused to calculate the present value.
(2) Accounting treatment with the Company as lessor
① Lease classification
The Company classifies leases into finance leases and operating leases at the inception of leases. Afinance lease refers to a lease where almost all the risks and rewards, related to the ownership of theleased asset, are substantially transferred, regardless of whether the ownership is eventuallytransferred or not. All leases other than finance leases are classified as operating leases.
② Operating leases
The Company recognizes the lease payments receivable of the operating lease as rental earnings ineach period within the lease term on a straight-line basis or according to other systematic andreasonable methods. The initial direct costs related to the operating lease are capitalized, amortizedwithin the lease term on the same basis as the recognition of rental earnings, and included in profit orloss for the current period. The received variable lease payments related to the operating lease that arenot included in the lease payments receivable are included in profit or loss for the current period whenthey are actually incurred.
③ Finance leases
On the commencement date of the lease term, the Company recognizes the finance lease receivablesfor the finance lease and derecognizes the leased asset of the finance lease. In the initial measurementof finance lease receivables, the sum of the unsecured residual value and the present value of thelease payments receivable not yet received on the commencement date of the lease term discounted atthe interest rate implicit in lease is the entry value of the finance lease receivables. The Companycalculates and recognizes the interest income in each period within the lease term at a fixed interestrate implicit in the lease. The received variable lease payments that are not included in themeasurement of the net investment in the lease are included in profit or loss for the current period whenthey are actually incurred.
5.36. Income tax expenses
The Company adopts the balance sheet liability method to account for income tax.The Company recognizes deferred tax assets when the following conditions are met simultaneously:
1. Temporary differences are highly likely to be reversed in the foreseeable future;
2. Taxable income that may be used to offset the deductible temporary difference is likely to be obtainedin the future and is limited to the amount of taxable income that is likely to be obtained.On each balance sheet date, the current income tax liabilities (or assets) incurred in the current periodor prior periods shall be measured by the Company in light of the expected payable (refundable)amount of income taxes according to the tax law; The deferred income tax assets and deferred incometax liabilities shall be measured at the tax rate applicable to the period during which the assets areexpected to be recovered or the liabilities are expected to be settled.The Company shall review the carrying amount of deferred income tax assets on each balance sheetdate. The current income tax and deferred income tax shall be recorded into the current profit and lossas income tax expense or income, except for the income tax generated from the enterprise merger,transactions or events directly recognized in the owner's equity.
5. 37. Changes in significant accounting policies and accounting estimates
5.37.1. Changes in significant accounting policies
? Applicable □ N/A
Unit: CNY
| Content and reasons for accounting policy changes | Statement line item significantly affected | Amount affected |
| On October 25, 2023, the Ministry of Finance issued the "Interpretation No. 17 to the Accounting Standards for Business Enterprises" (Accounting (2023) No. 21). Provisions "On the division of current liabilities and non-current liabilities", "On the disclosure of supplier financing arrangements" and "On the accounting treatment of sale and leaseback transactions" have come into effect on January 1, 2024. | None | |
| On August 1, 2023, the Ministry of Finance issued the "Interim Provisions on Accounting Treatment Related to Enterprise Data Resources" (Accounting [2023] No. 11), which regulates the relevant accounting treatment of data resources and puts forward specific requirements for the disclosure of data resources. The provisions have come into effect on January 1, 2024. | None | |
| On December 6, 2024, the Ministry of Finance issued the "Interpretation No. 18 to the Accounting Standards for Business Enterprises" (Accounting (2024) No. 24), which stipulates that the estimated liabilities arising from the product warranties of the guarantee type that does not belong to the single performance obligation shall be included in the "main business cost" and "other business cost" according to the determined amount, and shall no longer be included in the "selling and distribution expenses", which shall be implemented from the date of publication. And the Company has adopted the said policy from January 1, 2024. | None |
5.37.2. Changes in significant accounting estimates
□ Applicable ? N/A
5.37.3. Adjustments to Financial Statement Items at the Beginning of the Year of the FirstImplementation of the New Accounting Standards Implemented since 2024
□ Applicable ? N/A
6. Taxes
6.1. Major tax types and rates
| Tax type | Tax base | Tax rate |
| Value-added tax | Taxable sales income | 13 %, 9%, 6% |
| Urban maintenance and construction tax | Taxable turnover tax | 7%, 5% |
| Corporate income tax | Taxable income | 25%, 15%, 16.5%, 9%, 0% |
| Consumption tax (based on price) | Baijiu tax price or ex-factory price | 20% |
| Consumption tax (based on quantity) | Quantity of baijiu | CNY 1.00/kg |
| Education surcharge | Taxable turnover tax | 3% |
| Local education surcharge | Taxable turnover tax | 2% |
| Property tax | Original value of the property*70%; house rent | 1.2%, 12% |
| Land use tax | Land area | CNY 1.2-20/m2 |
| Others | According to national regulation |
Tax payment subject using different corporate income tax rates, the corporate income tax rates areas follows:
| Company name | Corporate income tax rate |
| Luzhou Red Sorghum Modern Agricultural Development Co., Ltd. | Exempted from corporate income tax |
| Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd. | 9% |
| Luzhou Laojiao International Trade (Hainan) Co., Ltd. | 15% |
| Luzhou Pinchuang Technology Co., Ltd. | 15% |
| Luzhou Laojiao International Development (Hong Kong) Co., Ltd. | 16.5% |
| Luzhou Laojiao Commercial Development (North America) Co., Ltd. | 21%-40% |
| Mingjiang Co., Ltd. | 21%-40% |
6.2. Tax preferences
(1) According to Announcement of the Ministry of Finance, State Taxation Administration and NationalDevelopment and Reform Commission on Continuing the Corporate Income Tax Policies Concerningthe Western Development Strategy (No. 23 in 2020, Ministry of Finance), from 1 January 2021 to 31December 2030, companies are located in the western region whose primary business is listed in theCatalogue of Encouraged Industries in the Western Region, and the primary business incomeaccounting for over 60% of the total enterprise income. These companies shall be subject to thecorporate income tax at a reduced rate of 15%. The Company's holding subsidiary, Luzhou PinchuangTechnology Co., Ltd., whose primary business income meet the requirements of scope and standard ofthe Catalogue of Encouraged Industries in the Western Region, is paid at the rate of 15% for corporateincome tax.
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China andArticle 86, Item 1 of the Implementation Regulations of the Corporate Income Tax Law, companies areexempted from enterprise income tax when they engage in agricultural, forestry, animal husbandry andfishery industries. The holding subsidiary of the Company, Luzhou Red Sorghum Modern AgriculturalDevelopment Co., Ltd., is engaged in the cultivation and sale of organic sorghum and enjoys thereduction of corporate income tax preferences.
(3) According to the Article 15, Item 1 of the Provisional Regulations on Value-Added Tax, agriculturalproducers sell self-produced agricultural products exempt from value-added tax. The holding subsidiaryof the Company, Luzhou Red Sorghum Modern Agricultural Development Co., Ltd., is engaged in thecultivation and sale of organic sorghum and enjoys the value-added tax exemption.
(4) According to the Article 3, Item 7 of the Notice on Revise of Interim Measures of Accelerating theDevelopment in Headquarters Economy of China-Malaysia Qinzhou Industrial Park, till 31 December2025, the enterprises in the Qinzhou Industrial Park that enjoy 15% of tax rate of Western Developmentwith the half reduction in the tax period of preferential policies shall enjoy the local share of corporateincome tax exemption (namely 40% of corporate income tax was exempted, and the proportionadjusted by the state shall be executed according to new proportion); Guangxi Luzhou Laojiao ImportedLiquor Industry Co., Ltd., the wholly-owned subsidiary of the Company, pays corporate income tax atthe rate of 9% according to the tax preference policies.
(5) According to Announcement on Preferential Corporate Income Tax Policies in Hainan Free TradePort (Cai Shui [2020] No. 31), the Company's wholly-owned subsidiary, Luzhou Laojiao InternationalTrade (Hainan) Co., Ltd., whose primary business income meet the requirements of scope andstandard of the Catalogue of Encouraged Industries in Hainan Free Trade Port, is paid at the rate of 15%for corporate income tax.
7. Notes to the main items of the consolidated financial statements (Allcurrency unit is CNY, except other statements)
7.1. Cash and cash equivalents
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Cash | 27,640.75 | 24,059.24 |
| Bank deposit | 33,506,712,545.24 | 25,916,630,894.83 |
| Other cash and cash equivalents | 71,656,645.34 | 35,370,137.21 |
| Total | 33,578,396,831.33 | 25,952,025,091.28 |
| Including: Total deposit outbound | 104,980,028.96 | 93,987,202.68 |
Other statements:
Note 1: The deposit outbound is the balance of cash and cash equivalents of the foreign holdingsubsidiary of the Company.Note 2: The closing balance of other monetary funds mainly consists of the remaining funds insecurities accounts of the Company in the amount of CNY 2,817,992.63, bank guarantee deposits ofCNY 10,000,000.00 for the subsidiary, Luzhou Laojiao Sales Co., Ltd., the closing balance of funds inself-owned accounts on third-party platforms for subsidiaries such as Luzhou Laojiao ElectronicCommerce Co., Ltd., Luzhou Laojiao New Retail Co., Ltd. and Luzhou Laojiao Nostalgic LiquorMarketing Co., Ltd., in the amount of CNY 40,838,649.27, and the court frozen funds of LuzhouLaojiao Brewing Co., Ltd. in the amount of CNY 18,000,003.44.Note 3: There is no special benefit arrangement such as establishing a fund co-management accountwith related parties in the current period.
Liquor and wine manufacturing companies shall disclose in detail whether there are special interestarrangements such as establishing co-management accounts with related parties.
□Applicable ? N/A
7.2. Held-for-trading financial assets
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Financial assets measured at fair value with their changes included into current profits/losses | 1,694,282,295.97 | 1,426,992,098.83 |
| Including: | ||
| Wealth management products | 1,694,282,295.97 | 1,426,992,098.83 |
| Including: | ||
| Total | 1,694,282,295.97 | 1,426,992,098.83 |
Other statements:
Note 1: The closing balance is the Company’s wealth management products of the collective assetmanagement plan purchased from securities-type companies which are measured at fair value basedon the amount calculated on the basis of the net value of relevant asset units published on the officialwebsite of the asset manager.
7.3. Accounts receivable
7.3.1. Disclosure by aging
Unit：CNY
| Aging | Closing book balance | Opening book balance |
| Within 1 year (including 1 year) | 11,602,423.49 | 18,489,106.27 |
| 2-3 years | 263,509.80 | |
| Total | 11,602,423.49 | 18,752,616.07 |
7.3.2. Disclosure by withdrawal methods for bad debts
Unit：CNY
| Type | Closing Balance | Opening Balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Accounts receivable tested for impairment individually | 372,217.14 | 1.98% | 372,217.14 | 100.00% | ||||||
| Including: | ||||||||||
| Account | 372,217 | 1.98% | 372,217 | 100.00 | ||||||
| s receivable that are not individually material but for which a separate provision for bad debts has been made | .14 | .14 | % | |||||||
| Accounts receivable tested for impairment by the portfolio | 11,602,423.49 | 100.00% | 580,121.18 | 5.00% | 11,022,302.31 | 18,380,398.93 | 98.02% | 919,019.95 | 5.00% | 17,461,378.98 |
| Including: | ||||||||||
| Accounts receivable tested for impairment on the portfolio with characteristics of credit risk | 11,602,423.49 | 100.00% | 580,121.18 | 5.00% | 11,022,302.31 | 18,380,398.93 | 98.02% | 919,019.95 | 5.00% | 17,461,378.98 |
| Total | 11,602,423.49 | 100.00% | 580,121.18 | 5.00% | 11,022,302.31 | 18,752,616.07 | 100.00% | 1,291,237.09 | 6.89% | 17,461,378.98 |
Accounts receivable tested for impairment individually: CNY 0
Unit：CNY
| Name | Opening Balance | Closing Balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Proportion | Reason | |
| Beijing Secoo Trading Limited1 | 372,217.14 | 372,217.14 | The amount is not expected to be recovered | |||
| Total | 372,217.14 | 372,217.14 | ||||
Note: 1 The amount due from Beijing Secoo Trading Limited was fully recovered in the year, and thecorresponding balance of the provision for bad debt at the beginning of the year was recovered.
Accounts receivable tested for impairment by the portfolio: CNY 580,121.18
Unit：CNY
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Proportion | |
| Risk portfolio | 11,602,423.49 | 580,121.18 | 5.00% |
| Including: within 1 year | 11,602,423.49 | 580,121.18 | 5.00% |
| Other portfolio | |||
| Total | 11,602,423.49 | 580,121.18 | |
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.
If adopting the general mode of expected credit loss to withdraw provision for bad debt of accountsreceivable
□Applicable ? N/A
7.3.3. Provision and recovery for bad and doubtful debt in the current periodAllowance of provision for bad debt:
Unit：CNY
| Type | Opening Balance | Changes in current period | Closing Balance | |||
| Allowance | Reversal or recovery | Write-off | Other | |||
| Accounts receivable with a single provision for expected credit loss | 372,217.14 | 372,217.14 | ||||
| Accounts receivable with expected credit loss by portfolio | 919,019.95 | 338,898.77 | 580,121.18 | |||
| Total | 1,291,237.09 | 711,115.91 | 580,121.18 | |||
7.3.4. Top five entities with the largest balances of accounts receivable and contract assets
Unit：CNY
| Company name | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion to total closing balance of accounts receivable and contract assets | Closing balance of provision for bad debt provision of accounts receivable and impairment allowance of contract assets |
| Beijing User Growth Network Technology Co., Ltd. | 4,228,353.65 | 4,228,353.65 | 36.45% | 211,417.68 | |
| China Duty Free International Co., Ltd. | 2,724,518.70 | 2,724,518.70 | 23.48% | 136,225.94 | |
| Hangzhou Youzan | 2,453,739.29 | 2,453,739.29 | 21.15% | 122,686.96 |
| Technology Inc. | |||||
| Sazerac Company, Inc | 1,103,625.27 | 1,103,625.27 | 9.51% | 55,181.26 | |
| Chengdu Kuaigou Technology Co., Ltd. | 476,804.65 | 476,804.65 | 4.11% | 23,840.23 | |
| Total | 10,987,041.56 | 10,987,041.56 | 94.70% | 549,352.07 |
7.4. Accounts receivable financing
7.4.1. Accounts receivable financing listed by category
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Bank acceptance bill | 1,801,947,455.781 | 5,938,171,007.93 |
| Total | 1,801,947,455.78 | 5,938,171,007.93 |
Notes: 1 The closing balance of accounts receivables financing decreased by CNY 4,136,000,000 or
69.65% compared with the opening balance, which was mainly due to the impact of bill endorsementand discount, as well as remittance of bills for collection at maturity.
7.4.2. Disclosure by withdrawal methods for bad debts
Unit：CNY
| Type | Closing Balance | Opening Balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Including: | ||||||||||
| Provision allowance by portfolio | 1,801,947,455.78 | 100.00% | 1,801,947,455.781 | 5,938,171,007.93 | 100.00% | 5,938,171,007.93 | ||||
| Including: | ||||||||||
| Bank acceptance bill | 1,801,947,455.78 | 100.00% | 1,801,947,455.78 | 5,938,171,007.93 | 100.00% | 5,938,171,007.93 | ||||
| Total | 1,801,947,455.78 | 100.00% | 1,801,947,455.78 | 5,938,171,007.93 | 100.00% | 5,938,171,007.93 | ||||
Note: 1. The notes receivable under accounts receivable financing comprise bank acceptance, andthe Company believes that the bank acceptance it holds does not pose significant credit risks. It doesnot anticipate significant losses due to defaults by banks or other drawers, therefore, no provision forcredit impairment losses has been recognized.
Provision allowance by portfolio: CNY 0
Unit：CNY
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Proportion | |
| Risk portfolio | 1,801,947,455.78 | ||
| Other portfolio | |||
| Total | 1,801,947,455.78 |
Notes to the determination basis for the portfolio:
As bank acceptance has low credit risks, no bad debt provision is made.
7.4.3. Accounts receivable financing that have been endorsed to other parties or discountedby the Company but have not expired at the end of the period
Unit：CNY
| Item | Derecognition at period-end | Not derecognition at period-end |
| Bank acceptance bill | 7,494,365,701.361 | |
| Total | 7,494,365,701.36 |
Note: 1 Due to the fact that the acceptor of bank acceptance is a commercial bank, which is of highcredit level, the likelihood of default at the maturity of bank acceptance is low. Therefore, theCompany derecognizes bank acceptance that has been endorsed or discounted.
7.4.4. Changes in accounts receivable financing in the reporting period and fair value
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| Notes receivable | 5,938,171,007.93 | 23,043,222,841.01 | 27,179,446,393.16 | 1,801,947,455.78 |
| Total | 5,938,171,007.93 | 23,043,222,841.01 | 27,179,446,393.16 | 1,801,947,455.78 |
Note: Accounts receivable financing represents bank acceptance, with a short remaining maturity.The book value closely aligns with the fair value; hence, the book value is used as its fair value.
7.4.5. Other statements
7.5. Other receivables
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Other receivables | 13,053,645.00 | 22,716,893.12 |
| Total | 13,053,645.00 | 22,716,893.12 |
7.5.1. Other receivables
7.5.1.1. Other receivables disclosed by nature
Unit：CNY
| Nature | Closing book balance | Opening book balance |
| Intercourse funds | 10,388,747.89 | 17,537,144.37 |
| Petty cash | 243,853.22 | 214,206.23 |
| Saving deposits involving contract disputes1 | 124,099,253.17 | 127,564,873.50 |
| Total | 134,731,854.28 | 145,316,224.10 |
Note: 1 The saving deposits involving contract disputes are three deposits amounting to CNY500,000,000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and NanyangZhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement incontract disputes and have thus been transferred into “other receivables”. In 2024, CNY 3,465,620.33of the saving deposits involving contract disputes was recovered. The closing balance of this accountas at the date of the statement was CNY 124,099,253.17.
7.5.1.2. Disclosure by aging
Unit：CNY
| Aging | Closing book balance | Opening book balance |
| Within 1 year (including 1 year) | 9,264,632.85 | 15,696,066.07 |
| 1-2 years | 139,760.59 | 38,347.61 |
| 2-3 years | 6,347.61 | 293,480.00 |
| Over 3 years | 125,321,113.231 | 129,288,330.42 |
| 3-4 years | 36,880.00 | 11,500.00 |
| 4-5 years | 22,800.00 | |
| Over 5 years | 125,284,233.23 | 129,254,030.42 |
| Total | 134,731,854.28 | 145,316,224.10 |
Note: 1 Other receivables with significant single amount exceeding three years in age relates tosavings deposit of CNY 124,099,253.17, which are yet to be recovered due to contractual disputes.
7.5.1.3. Disclosure by withdrawal methods for bad debts
?Applicable □ N/A
Unit：CNY
| Type | Closing balance | Opening Balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Provision for bad debt by individual item | 124,099,253.17 | 92.11% | 120,000,000.00 | 96.70% | 4,099,253.17 | 127,614,873.50 | 87.82% | 120,050,000.00 | 94.07% | 7,564,873.50 |
| Including: | ||||||||||
| Other receivables that are individually material and for which a separate provision for bad debts has | 124,099,253.17 | 92.11% | 120,000,000.00 | 96.70% | 4,099,253.17 | 127,564,873.50 | 87.79% | 120,000,000.00 | 94.07% | 7,564,873.50 |
| been made | ||||||||||
| Other receivables that are not individually material but for which a separate provision for bad debts has been made | 50,000.00 | 0.03% | 50,000.00 | 100.00% | ||||||
| Provision for bad debt by the portfolio | 10,632,601.11 | 7.89% | 1,678,209.28 | 15.78% | 8,954,391.83 | 17,701,350.60 | 12.18% | 2,549,330.98 | 14.40% | 15,152,019.62 |
| Including: | ||||||||||
| Other receivables tested for impairment on the portfolio with characteristics of credit risk | 10,632,601.11 | 7.89% | 1,678,209.28 | 15.78% | 8,954,391.83 | 17,701,350.60 | 12.18% | 2,549,330.98 | 14.40% | 15,152,019.62 |
| Total | 134,731,854.28 | 100.00% | 121,678,209.28 | 90.31% | 13,053,645.00 | 145,316,224.10 | 100.00% | 122,599,330.98 | 84.37% | 22,716,893.12 |
Provision for bad debt by individual item: CNY 120,000,000
Unit：CNY
| Name | Opening Balance | Closing Balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Proportion | Reason | |
| Saving deposits involving contract disputes | 127,564,873.50 | 120,000,000.00 | 124,099,253.17 | 120,000,000.00 | 96.70% | Provision based on legal opinion |
| Beijing Secoo Trading Limited | 50,000.00 | 50,000.00 | The amount is not expected to be recovered | |||
| Total | 127,614,873.50 | 120,050,000.00 | 124,099,253.17 | 120,000,000.00 | ||
Provision for bad debt by the portfolio: CNY 1,678,209.28
Unit：CNY
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Proportion | |
| Risk portfolio | 10,632,601.11 | 1,678,209.28 | 15.78% |
| Including: within 1 year | 9,264,632.85 | 463,231.64 | 5.00% |
| 1-2 years | 139,760.59 | 13,976.06 | 10.00% |
| 2-3 years | 6,347.61 | 1,269.52 | 20.00% |
| 3-4 years | 36,880.00 | 14,752.00 | 40.00% |
| 4-5 years | 80.00% | ||
| Over 5 years | 1,184,980.06 | 1,184,980.06 | 100.00% |
| Other portfolio | |||
| Total | 10,632,601.11 | 1,678,209.28 | |
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.
Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit：CNY
| Provision for bad debt | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of January 1, 2024 | 2,549,330.98 | 120,050,000.00 | 122,599,330.98 | |
| Balance of January 1, 2024 in the current period | ||||
| Reversal of the current period | 871,121.70 | 50,000.00 | 921,121.70 | |
| Balance of December 31, 2024 | 1,678,209.28 | 120,000,000.00 | 121,678,209.28 |
The basis for the division of each stage and the withdrawal proportion of bad debt provisionThe basis for division is that other receivables with single bad debt provision represent creditimpairment losses incurred since initial recognition (Stage 3), while the remaining portion iscategorized based on expected credit risk. Withdrawal proportions of bad debt provision are15.78%for Stage 1 and 96.70% for Stage 3, totaling 90.31%.
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable ? N/A
7.5.1.4. Provision and recovery for bad and doubtful debt in the current periodAllowance of provision for bad debt:
Unit：CNY
| Type | Opening Balance | Changes in current period | Closing Balance | |||
| Allowance | Reversal or recovery | Write-off or verification | Other | |||
| Bad debt provision for other receivables | 122,599,330.98 | 921,121.70 | 121,678,209.28 | |||
| Total | 122,599,330.98 | 921,121.70 | 121,678,209.28 | |||
7.5.1.5. Top five entities with the largest balances of the other receivables
Unit：CNY
| Company Name | Nature | Closing Balance | Aging | Proportion in total receivables | Provisioning amount at period end |
| Saving deposits involving contract disputes | Saving deposits involving contract disputes | 124,099,253.17 | Over 5 years | 92.11% | 120,000,000.00 |
| Luzhou Qianheng Labor Service Co., Ltd. | Intercourse funds and other accounts | 224,296.76 | Within 1 year, 1-2 years | 0.17% | 14,922.37 |
| TOWNE CENTRE OFFICES-PI PROPERTIES NO 111 LLC | Intercourse funds and other accounts | 134,503.47 | Within 1 year | 0.10% | 6,725.17 |
| Chen Weirong | Petty cash | 113,853.22 | Within 1 year | 0.08% | 5,692.66 |
| Liao Wuhong | Petty cash | 80,000.00 | Within 1 year | 0.06% | 4,000.00 |
| Total | 124,651,906.62 | 92.52% | 120,031,340.20 |
7.6. Prepayment
7.6.1. Aging analysis
Unit：CNY
| Aging | Closing Balance | Opening Balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 115,124,824.62 | 92.95% | 196,801,356.07 | 97.28% |
| 1-2 years | 4,202,267.01 | 3.39% | 1,685,909.93 | 0.83% |
| 2-3 years | 722,670.32 | 0.58% | 2,987,977.50 | 1.48% |
| Over 3 years | 3,820,520.70 | 3.08% | 833,943.20 | 0.41% |
| Total | 123,870,282.65 | 202,309,186.70 | ||
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There is no significant prepayment whose aging is longer than 1 year.
7.6.2. Top five entities with the largest balances of prepayment
| Company Name | Closing Balance | Aging | Proportion to the total closing balance of prepayment |
| Shanghai Merlot Advertising Co., Ltd. | 16,020,000.00 | Within 1 year | 12.93% |
| Luzhou Western Gas Co., Ltd. | 12,010,808.11 | Within 1 year | 9.70% |
| Luzhou Power Supply Company of State Grid Sichuan Electric Power Company | 9,799,623.42 | Within 1 year | 7.91% |
| Luzhou Laojiao Group Co., Ltd. | 9,180,164.89 | Within 1 year | 7.41% |
| Sports Equipment Center of General Administration of Sport of China | 7,105,776.78 | Within 1 year | 5.74% |
| Total | 54,116,373.20 | 43.69% |
7.7. Inventories
Whether the Company needs to comply with the disclosure requirements of real estate industryNo
7.7.1. Categories of Inventories
Unit：CNY
| Category | Closing Balance | Opening Balance | ||||
| Book Balance | Provision for stock obsolescence or impairment provision of contract performance costs | Book Value | Book Balance | Provision for stock obsolescence or impairment provision of contract performance costs | Book Value | |
| Raw materials | 114,546,157.41 | 114,546,157.41 | 112,835,009.77 | 112,835,009.77 | ||
| Goods in progress | 10,739,545,764.821 | 10,739,545,764.82 | 9,169,963,972.73 | 9,169,963,972.73 | ||
| Finished goods | 2,505,218,578.73 | 2,505,218,578.73 | 2,316,583,144.62 | 2,316,583,144.62 | ||
| Goods in transit | 33,483,975.00 | 33,483,975.00 | 22,661,820.34 | 22,661,820.34 | ||
| Total | 13,392,794,475.96 | 13,392,794,475.96 | 11,622,043,947.46 | 11,622,043,947.46 | ||
Note: 1 The increase in goods in progress was mainly due to the Company’s promotion of high-quality production capacity reserve and quality improvement plan, which increased the strategicreserve of high-quality base liquor.The Company shall comply with the disclosure requirements for companies engaging in food & liquorand wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation ofListed Companies—Industry-specific Information Disclosure.
7.7.2. Notes to the closing balance of inventories including capitalized borrowing expenseThere was no capitalized borrowing expense in the closing balance of inventories.
7.8. Other current assets
Unit：CNY
| Item | Closing Balance | Opening Balance |
| VAT to be deducted | 217,415,843.41 | 164,220,376.30 |
| Corporate income tax | 20,441,701.15 | 8,733,293.33 |
| Other taxes | 3,224,364.33 | 3,731,062.34 |
| Total | 241,081,908.89 | 176,684,731.97 |
Other statements:
The value-added tax expected to be deducted in the next fiscal year and corporate income tax andother taxes are disclosed in other current assets.
7.9. Other equity instrument investment
Unit：CNY
| Item | Closing Balance | Opening Balance | Gains recorded in other comprehensive income in the current period | Losses recorded in other comprehensive income in the current period | Accumulative gains recorded in other comprehensive income at the end of the period | Accumulative losses recorded in other comprehensive income at the end of the period | Dividend income recognized in current year | Reason for assigning to measure in fair value of which changes included other comprehensive income |
| Financial assets assigned to measure in fair value of which changes included other comprehensive income: | ||||||||
| Including: | ||||||||
| Guotai Haitong Securities Co., Ltd. (formerly known as “Guotai Junan Securities Co., Ltd. and renamed in April 2025) | 219,640,994.03 | 175,241,715.34 | 44,399,278.69 | 206,921,837.27 | 6,477,348.35 | According to the mode of managing assets by management layer | ||
| China Tourism Group Duty Free Corporation Limited | 60,069,399.64 | 84,854,489.68 | 24,785,090.04 | 91,129,295.64 | 2,015,648.45 | According to the mode of managing assets by management layer | ||
| Luzhou Bank Co., Ltd. | 78,356,318.99 | 96,733,837.69 | 18,377,518.70 | 27,236,318.99 | 3,905,280.00 | According to the mode of managing assets by management layer | ||
| Guotai Junan Investment Managem | 22,611,834.24 | 22,611,834.24 | According to the mode of managing assets by |
| ent Co., Ltd. | management layer | |||||||
| North Chemical Industries Co., Ltd. | 15,870,083.24 | 12,805,515.44 | 3,064,567.80 | 14,840,083.24 | 78,177.75 | According to the mode of managing assets by management layer | ||
| Guojiu Big Data Co., Ltd. | 8,799,784.78 | 8,799,784.78 | 1,200,215.22 | According to the mode of managing assets by management layer | ||||
| Sichuan China Baijiu Golden Triangle Brand Operation Development Co., Ltd. and other equity instrument investments | 1,846,291.63 | 1,846,291.63 | 5,752,926.37 | 2,500,000.00 | According to the mode of managing assets by management layer | |||
| Total | 407,194,706.55 | 402,893,468.80 | 47,463,846.49 | 43,162,608.74 | 248,998,239.50 | 98,082,437.23 | 14,976,454.55 |
Categories of non-trading equity instrument investment in the current period:
Unit：CNY
| Item | Recognized dividends income | Accumulative gains | Accumulative losses | Amount of other comprehensive income transferred to retained earnings | Reason for assigning to measure at fair value and changes recorded into other comprehensive income | Reason of other comprehensive income transferred to retained earnings |
| Guotai Haitong Securities Co., Ltd. | 6,477,348.35 | 206,921,837.27 | According to the mode of managing assets by management layer | |||
| China Tourism Group Duty Free Corporation Limited | 2,015,648.45 | 91,129,295.64 | According to the mode of managing assets by management layer | |||
| Luzhou Bank Co., Ltd. | 3,905,280.00 | 27,236,318.99 | According to the mode of managing assets by management layer |
| Guotai Junan Investment Management Co., Ltd. | According to the mode of managing assets by management layer | |||||
| North Chemical Industries Co., Ltd. | 78,177.75 | 14,840,083.24 | According to the mode of managing assets by management layer | |||
| Guojiu Big Data Co., Ltd. | 1,200,215.22 | According to the mode of managing assets by management layer | ||||
| Sichuan China Baijiu Golden Triangle Brand Operation Development Co., Ltd. and other equity instrument investments | 2,500,000.00 | 5,752,926.37 | According to the mode of managing assets by management layer |
Other statements:
7.10. Long-term equity investments
Unit：CNY
| Investee | Opening Balance (book value) | Opening Balance of provision for impairment | Changes in current period | Closing Balance (book value) | Closing Balance of provision for impairment | |||||||
| Increase | Decrease | Gain or loss recognized under equity method | Adjustments of other comprehensive income | Other changes in equity | Cash divided or profit declared | Provision for impairment | Other | |||||
| 1. Joint Ventures | ||||||||||||
| 2. Associate | ||||||||||||
| Huaxi Securities Co., Ltd. | 2,535,630,372.30 | 2,567,098.80 | 75,663,468.99 | 17,154,748.48 | 13,641,557.20 | 2,614,807,032.57 | 2,567,098.80 | |||||
| Luzhou Laojiao Postdoctoral Workstation Technology Innov | 38,339,051.51 | -1,657,333.41 | 36,681,718.10 | |||||||||
| ation Co., Ltd. | ||||||||||||
| Sichuan Development Liquor Investment Co., Ltd. | 5,897,980.85 | -19,699.92 | 5,878,280.93 | |||||||||
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 120,047,035.94 | 3,063,143.19 | 123,110,179.13 | |||||||||
| Sichuan Tianfu Granary Liquor Industry Co., Ltd. | 11,700,000.00 | 802,140.27 | 12,502,140.27 | |||||||||
| Sichuan Tongniang Baijiu Industry Technology Research Institute Co., Ltd. | 8,340,392.90 | -67,425.97 | 8,272,966.93 | |||||||||
| Subtotal | 2,708,254,833.50 | 2,567,098.80 | 11,700,000.00 | 77,784,293.15 | 17,154,748.48 | 13,641,557.20 | 2,801,252,317.93 | 2,567,098.80 | ||||
| Total | 2,708,254,833.50 | 2,567,098.80 | 11,700,000.00 | 77,784,293.15 | 17,154,748.48 | 13,641,557.20 | 2,801,252,317.93 | 2,567,098.80 |
The recoverable amount is determined based on the net amount of the fair value minus disposalcosts
□Applicable ? N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□Applicable ? N/A
7.11. Investment property
7.11.1. Investment property with cost measurement model
?Applicable □ N/A
Unit：CNY
| Item | Buildings and constructions | Land use right | Construction in progress | Total |
| I. Original cost: | ||||
| 1.Opening balance | 47,321,613.93 | 9,566,480.21 | 56,888,094.14 | |
| 2.Increase in current period | 32,288,816.14 | 3,200,587.50 | 35,489,403.64 | |
| (1) External purchase | ||||
| (2) Transfer from inventories/fixed assets/construction in progress | 32,288,816.14 | 3,200,587.50 | 35,489,403.64 | |
| (3) Increase from business combination | ||||
| 3.Decrease in current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4.Closing Balance | 79,610,430.07 | 12,767,067.71 | 92,377,497.78 | |
| II. Accumulated depreciation and amortization | ||||
| 1.Opening Balance | 15,788,024.62 | 3,314,652.75 | 19,102,677.37 | |
| 2.Increase in current period | 21,110,780.90 | 1,917,345.35 | 23,028,126.25 | |
| (1) Provision or amortization | 1,332,489.69 | 730,478.51 | 2,062,968.20 | |
| (2) Transfer from fixed assets/construction in progress/intangible assets | 19,778,291.21 | 1,186,866.84 | 20,965,158.05 | |
| 3.Decrease in current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4.Closing Balance | 36,898,805.52 | 5,231,998.10 | 42,130,803.62 | |
| III. Provision for impairment | ||||
| 1.Opening Balance | ||||
| 2.Increase in current period | ||||
| (1) Provision | ||||
| 3.Decrease in current period | ||||
| (1) Disposal |
| (2) Other transfer out | ||||
| 4.Closing Balance | ||||
| IV. Book Value | ||||
| 1.Closing Book Value | 42,711,624.55 | 7,535,069.61 | 50,246,694.16 | |
| 2.Opening Book Value | 31,533,589.31 | 6,251,827.46 | 37,785,416.77 |
The recoverable amount is determined based on the net amount of the fair value minus disposalcosts
□Applicable ? N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□Applicable ? N/A
The reason for the discrepancy between the foregoing information and the information used in theimpairment tests in prior years or external information
The reason for the discrepancy between the information used in the Company's impairment tests inprior years and the actual situation of those years
Other statements:
7.11.2. Investment property without certification of right
Unit：CNY
| Item | Book value | Reason for not having the certification of right |
| Buildings of the Company | 13,832,335.36 | In procedure |
7.12. Fixed assets
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Fixed assets | 9,131,607,204.08 | 8,613,187,271.67 |
| Disposal of fixed assets | 169,711.43 | 36,193.79 |
| Total | 9,131,776,915.51 | 8,613,223,465.46 |
7.12.1. Details of fixed assets
Unit：CNY
| Item | Buildings and constructions | Specialized equipment | General equipment | Transportation equipment | Other equipment | Total |
| I. Original cost: | ||||||
| 1.Opening balance | 7,601,544,871.04 | 1,249,997,326.78 | 1,223,925,013.96 | 46,767,392.95 | 1,652,688,060.94 | 11,774,922,665.67 |
| 2.Increase in current period | 777,708,299.57 | 246,002,383.20 | 102,041,092.69 | 9,835,445.28 | 343,010,928.44 | 1,478,598,149.18 |
| (1) External purchase | 97,500.00 | 3,758,081.52 | 43,281,600.96 | 691,247.80 | 1,245,529.72 | 49,073,960.00 |
| (2) Transfer from construction in progress | 772,988,699.26 | 242,244,189.18 | 51,951,320.26 | 9,144,197.48 | 316,242,837.82 | 1,392,571,244.00 |
| (3) Increase from business combination | ||||||
| (4) Transfer from intangible assets | 112.50 | 327,870.63 | 327,983.13 | |||
| (5) Adjustment for completion settlement | 4,061,406.77 | 6,408,565.43 | 10,469,972.20 | |||
| (6) Changes of exchange rates | -71,770.81 | -71,770.81 | ||||
| (7) Other | 560,693.54 | 471,376.85 | 25,194,690.27 | 26,226,760.66 | ||
| 3.Decrease in current period | 345,922,691.84 | 26,184,907.54 | 24,387,710.97 | 17,886,915.54 | 27,590,835.80 | 441,973,061.69 |
| (1) Disposal or retirement | 49,364,373.26 | 19,439,930.27 | 24,001,059.46 | 17,881,376.62 | 21,490,665.26 | 132,177,404.87 |
| (2) Transfer to investment property | 32,288,816.14 | 32,288,816.14 | ||||
| (3) Transfer to intangible assets | 36,714,324.50 | 36,714,324.50 | ||||
| (4) Transfer to construction in progress | 227,449,719.99 | 0.01 | 1,162,127.66 | 228,611,847.66 | ||
| (5) Adjustment for completion settlement | 6,744,977.27 | 5,538.92 | 4,742,925.76 | 11,493,441.95 | ||
| (6) Other | 105,457.95 | 386,651.50 | 195,117.12 | 687,226.57 | ||
| 4.Closing Balance | 8,033,330,478.77 | 1,469,814,802.44 | 1,301,578,395.68 | 38,715,922.69 | 1,968,108,153.58 | 12,811,547,753.16 |
| II. Accumulated depreciation | ||||||
| 1.Opening Balance | 1,157,287,207.89 | 606,617,382.10 | 541,324,309.81 | 35,207,198.35 | 820,676,355.78 | 3,161,112,453.93 |
| 2.Increase in current period | 272,358,849.43 | 163,238,236.98 | 147,667,745.64 | 4,070,653.19 | 93,393,524.70 | 680,729,009.94 |
| (1) Provision | 270,499,692.77 | 163,238,236.98 | 147,743,407.97 | 4,070,653.19 | 93,219,196.04 | 678,771,186.95 |
| (2) Transfer from intangible assets | 174,328.66 | 174,328.66 | ||||
| (3) Adjustment for completion settlement | 1,859,156.66 | 1,859,156.66 | ||||
| (4) Changes of exchange rates | -75,662.33 | -75,662.33 | ||||
| 3.Decrease in current period | 88,470,179.29 | 18,900,952.80 | 20,141,141.71 | 16,106,774.63 | 18,281,866.36 | 161,900,914.79 |
| (1) Disposal or retirement | 43,656,355.23 | 17,051,714.62 | 20,141,141.71 | 16,106,774.63 | 18,271,947.88 | 115,227,934.07 |
| (2) Transfer to investment property | 19,778,291.21 | 19,778,291.21 |
| (3) Transfer to intangible assets | 25,035,532.85 | 25,035,532.85 | ||||
| (4) Adjustment for completion settlement | 1,849,238.18 | 9,918.48 | 1,859,156.66 | |||
| 4.Closing Balance | 1,341,175,878.03 | 750,954,666.28 | 668,850,913.74 | 23,171,076.91 | 895,788,014.12 | 3,679,940,549.08 |
| III. Provision for impairment | ||||||
| 1.Opening Balance | 622,940.07 | 622,940.07 | ||||
| 2.Increase in current period | ||||||
| (1) Provision | ||||||
| 3.Decrease in current period | 622,940.07 | 622,940.07 | ||||
| (1) Disposal or retirement | 622,940.07 | 622,940.07 | ||||
| 4.Closing Balance | ||||||
| IV. Book Value | ||||||
| 1.Closing Book Value | 6,692,154,600.74 | 718,860,136.16 | 632,727,481.94 | 15,544,845.78 | 1,072,320,139.46 | 9,131,607,204.08 |
| 2.Opening Book Value | 6,443,634,723.08 | 643,379,944.68 | 682,600,704.15 | 11,560,194.60 | 832,011,705.16 | 8,613,187,271.67 |
7.12.2. Fixed assets leased out through operating lease
Unit：CNY
| Item | Closing book value |
| Buildings and constructions | 21,825,621.87 |
| Equipment | 15,224,667.58 |
| Total | 37,050,289.45 |
7.12.3. Fixed assets without certification of right
Unit：CNY
| Item | Book value | Reason for not having the certification of right |
| Buildings of the Company | 18,632,488.31 | The property ownership certificate has not been processed yet for the historical reasons, and it plans to be processed after gradually improving procedures. |
| Buildings of the Company | 216,373,516.94 | In procedure |
| Buildings of the subsidiary-brewing company | 4,642,895,976.37 | In procedure |
| Total | 4,877,901,981.62 |
7.12.4. Disposal of fixed assets
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Disposal and retirement of assets | 169,711.43 | 36,193.79 |
| Total | 169,711.43 | 36,193.79 |
7.13. Construction in progress
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Construction in progress | 807,233,988.90 | 1,718,468,880.53 |
| Total | 807,233,988.90 | 1,718,468,880.53 |
7.13.1. Details of the construction in progress
Unit：CNY
| Item | Closing Balance | Opening Balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Technical renovation of Luzhou Laojiao Intelligent packaging center | 6,367,929.36 | 6,367,929.36 | 1,132,704,191.02 | 1,132,704,191.02 | ||
| Technical renovation project of Luzhou Laojiao intelligent brewing (I) | 506,382,371.57 | 506,382,371.57 | 217,839,823.49 | 217,839,823.49 | ||
| Technical renovation of Luzhou Laojiao Intelligent packaging center (II) | 141,773,898.97 | 141,773,898.97 | ||||
| Project of Luzhou Laojiao's Flexible Intelligent Filling Pilot Line | 60,955,418.59 | 60,955,418.59 | 92,773,969.99 | 92,773,969.99 | ||
| Construction Project of Luzhou Laojiao's Strong Aroma Baijiu Experience Marketing Centre | 22,407,884.55 | 22,407,884.55 | 1,194,002.45 | 1,194,002.45 | ||
| Technical Reform Project of Luzhou Laojiao's Brewing Base | 574,755.15 | 574,755.15 | ||||
| The expansion and renovation project of the office area of | 22,751,740.43 | 22,751,740.43 | 3,083,641.38 | 3,083,641.38 | ||
| Luzhou Laojiao Marketing Network Command Center-Staff Home | ||||||
| Other projects | 188,368,644.40 | 188,368,644.40 | 128,524,598.08 | 128,524,598.08 | ||
| Total | 807,233,988.90 | 807,233,988.90 | 1,718,468,880.53 | 1,718,468,880.53 |
7.13.2. Significant changes in construction in progress
Unit：CNY
| Item | Budget | Opening Balance | Increase in current period | Transfer into fixed assets | Other decreases | Closing Balance | Proportion of accumulative project input in budget | Progress (%) | Accumulative capitalized interest | Including: Capitalized interest for the period | Capitalization rate for the period (%) | Source of funds |
| Technical renovation of Luzhou Laojiao Intelligent packaging center | 1,886,176,000.00 | 1,132,704,191.02 | 67,102,915.93 | 1,158,477,016.49 | 34,962,161.10 | 6,367,929.36 | 84.86% | 90.00% | 185,876.75 | Other | ||
| Technical renovation project of Luzhou Laojiao intelligent brewing (I) | 4,782,509,000.00 | 217,839,823.49 | 288,542,548.08 | 506,382,371.57 | 23.19% | 30.00% | Other | |||||
| Technical renovation of Luzhou Laojiao Intelligent | 188,000,000.00 | 141,773,898.97 | 6,679,184.04 | 147,996,324.53 | 456,758.48 | 89.22% | 89.00% | Other |
| packaging center (II) | ||||||||||||
| Total | 6,856,685,000.00 | 1,492,317,913.48 | 362,324,648.05 | 1,306,473,341.02 | 35,418,919.58 | 512,750,300.93 | 185,876.75 |
7.13.3. Impairment test of construction in progress
□Applicable ? N/A
7.14. Right-of-use assets
7.14.1. Details of right-of-use assets
Unit：CNY
| Item | Land use right | Buildings and constructions | Total |
| I. Original cost | |||
| 1. Opening Balance | 30,788,322.41 | 10,375,681.84 | 41,164,004.25 |
| 2. Increase in current period | 16,067,587.66 | 16,067,587.66 | |
| (1) Increase in leases | 14,797,048.30 | 14,797,048.30 | |
| (2) Changes of exchange rates | 1,270,539.36 | 1,270,539.36 | |
| 3. Decrease in current period | 1,117.72 | 1,117.72 | |
| (1) Lease expiration | 1,117.72 | 1,117.72 | |
| (2) Adjustment for change of lease term | |||
| 4. Closing Balance | 30,788,322.41 | 26,442,151.78 | 57,230,474.19 |
| II. Accumulated amortization | |||
| 1. Opening Balance | 10,273,916.78 | 7,629,132.24 | 17,903,049.02 |
| 2. Increase in current period | 3,424,638.93 | 6,648,572.01 | 10,073,210.94 |
| (1) Provision | 3,424,638.93 | 6,270,013.69 | 9,694,652.62 |
| (2) Changes of exchange rates | 378,558.32 | 378,558.32 | |
| 3. Decrease in current period | |||
| (1) Disposal | |||
| 4. Closing Balance | 13,698,555.71 | 14,277,704.25 | 27,976,259.96 |
| III. Provision for impairment | |||
| 1. Opening Balance | |||
| 2. Increase in current period | |||
| (1) Provision | |||
| 3. Decrease in current period | |||
| (1) Disposal | |||
| 4. Closing Balance | |||
| IV. Book Value |
| 1. Closing Book Value | 17,089,766.70 | 12,164,447.53 | 29,254,214.23 |
| 2. Opening Book Value | 20,514,405.63 | 2,746,549.60 | 23,260,955.23 |
7.14.2. Impairment test of right-of-use assets
□Applicable ? N/A
7.15. Intangible assets
7.15.1. Details of intangible assets
Unit：CNY
| Item | Land use right | Patent right | No-patent right technology | Computer software | Trademark right | Total |
| I. Original cost | ||||||
| 1. Opening Balance | 3,654,960,826.00 | 1,700,050.44 | 89,700,887.41 | 2,118,716.09 | 3,748,480,479.94 | |
| 2. Increase in current period | 88,436,461.64 | 51,027,847.91 | 139,464,309.55 | |||
| (1) Acquired | 49,169,900.00 | 511,051.20 | 49,680,951.20 | |||
| (2) Internal developed | ||||||
| (3) Business combination | ||||||
| (4) Transferred from construction in progress | 2,552,237.14 | 50,513,394.55 | 53,065,631.69 | |||
| (5) Transferred from fixed assets | 36,714,324.50 | 36,714,324.50 | ||||
| (6) Changes of exchange rates | 3,402.16 | 3,402.16 | ||||
| 3. Decrease in current period | 3,525,786.03 | 535,287.53 | 4,061,073.56 | |||
| (1) Disposal | 210,879.00 | 321,623.93 | 532,502.93 | |||
| (2) Transferred to investment property | 3,200,587.50 | 3,200,587.50 | ||||
| (3) Transferred to fixed assets | 114,319.53 | 213,663.60 | 327,983.13 | |||
| 4. Closing Balance | 3,739,871,501.61 | 1,700,050.44 | 140,193,447.79 | 2,118,716.09 | 3,883,883,715.93 | |
| II. Accumulated amortization | ||||||
| 1. Opening Balance | 309,168,468.63 | 960,614.13 | 38,581,851.65 | 1,895,754.45 | 350,606,688.86 | |
| 2. Increase in current period | 107,631,762.91 | 130,005.05 | 9,383,291.81 | 900.16 | 117,145,959.93 | |
| (1) Provision | 82,596,230.06 | 130,005.05 | 9,383,291.81 | 900.16 | 92,110,427.08 | |
| (2) Transferred from fixed assets | 25,035,532.85 | 25,035,532.85 |
| 3. Decrease in current period | 1,499,111.21 | 268,617.84 | 1,767,729.05 | |||
| (1) Disposal | 210,879.00 | 195,654.55 | 406,533.55 | |||
| (2) Transferred to investment property | 1,186,866.84 | 1,186,866.84 | ||||
| (3) Transferred to fixed assets | 101,365.37 | 72,963.29 | 174,328.66 | |||
| 4. Closing Balance | 415,301,120.33 | 1,090,619.18 | 47,696,525.62 | 1,896,654.61 | 465,984,919.74 | |
| III. Provision for impairment | ||||||
| 1. Opening Balance | ||||||
| 2. Increase in current period | ||||||
| (1) Provision | ||||||
| 3. Decrease in current period | ||||||
| (1) Disposal | ||||||
| 4. Closing Balance | ||||||
| IV. Book Value | ||||||
| 1. Closing Book Value | 3,324,570,381.28 | 609,431.26 | 92,496,922.17 | 222,061.48 | 3,417,898,796.19 | |
| 2. Opening Book Value | 3,345,792,357.37 | 739,436.31 | 51,119,035.76 | 222,961.64 | 3,397,873,791.08 |
There is no proportion of intangible assets formed by internal development to the balance ofintangible assets at the period-end.
7.15.2. Land use right without certification of right
There was no land use right without certification of right at the period-end.
7.16. Long-term deferred expense
Unit：CNY
| Item | Opening Balance | Increase | Amortization | Other decrease | Closing Balance |
| Improvement expense of rented fixed assets | 960,005.91 | 1,500,141.28 | 715,835.64 | -11,960.48 | 1,756,272.03 |
| Total | 960,005.91 | 1,500,141.28 | 715,835.64 | -11,960.481 | 1,756,272.03 |
Note: 1 Other decrease was generated from changes of exchange rates.
7.17. Deferred tax assets/ deferred tax liabilities
7.17.1. Deferred tax assets before offset
Unit：CNY
| Item | Closing Balance | Opening Balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for asset impairment | 124,771,509.82 | 31,075,237.73 | 127,079,101.68 | 31,572,482.83 |
| Unrealized profits from internal transactions | 742,790,841.94 | 185,697,710.49 | 1,533,438,058.70 | 383,359,514.67 |
| Impact from salary | 493,996,524.17 | 121,948,421.27 | 466,715,045.27 | 115,258,381.83 |
| Impact from deferred earnings | 86,672,726.83 | 21,668,181.71 | 27,772,083.74 | 6,943,020.94 |
| Impact from fixed assets depreciation | 1,598,536.52 | 405,851.10 | 889,943.60 | 233,853.09 |
| Recognition costs of restricted shares for equity incentive in the vesting period | 120,257,855.98 | 29,526,566.27 | 460,239,659.25 | 112,958,934.99 |
| Impact from fair value changes of other equity instrument investment | 115,507,633.77 | 28,876,908.44 | 90,722,543.67 | 22,680,635.92 |
| Impact of income tax from fair value changes of held-for-trading financial assets | 17,238,148.79 | 4,309,537.19 | ||
| Impact of income tax from initial recognition of lease liabilities | 3,258,868.36 | 676,678.84 | 8,994,376.39 | 1,422,793.65 |
| Total | 1,706,092,646.18 | 424,185,093.04 | 2,715,850,812.30 | 674,429,617.92 |
7.17.2. Deferred tax liabilities before offset
Unit：CNY
| Item | Closing Balance | Opening Balance | ||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
| Fair value changes of other equity instrument investment | 248,998,239.50 | 62,249,559.84 | 219,911,911.71 | 54,977,977.92 |
| Fair value changes of held-for-trading financial assets | 11,520,444.76 | 2,880,111.17 | 26,992,098.76 | 6,748,024.69 |
| Impact from the policy of one-time pre-tax deduction of fixed assets | 379,464,834.32 | 92,542,193.36 | 330,643,563.72 | 80,965,673.53 |
| Impact of income tax from initial recognition of right-of-use assets | 3,342,874.50 | 703,850.51 | 345,267.49 | 81,352.08 |
| Total | 643,326,393.08 | 158,375,714.88 | 577,892,841.68 | 142,773,028.22 |
7.17.3. Details of unrecognized deferred tax assets
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Deductible losses | 272,750,289.72 | 253,464,624.61 |
| Asset impairment provision | 2,156.34 | 1,505.26 |
| Employee benefits payable | 15,915,368.47 | 13,557,753.92 |
| Total | 288,667,814.53 | 267,023,883.79 |
7.17.4. Deductible losses from unrecognized deferred tax assets will due on the followingyears
Unit：CNY
| Year | Closing Amount | Opening Amount | Notes |
| 2024 | 14,491,365.44 | ||
| 2025 | 15,884,395.00 | 15,884,395.00 | |
| 2026 | 8,417,566.87 | 8,417,566.87 | |
| 2027 | 41,945,012.30 | 33,125,772.28 | |
| 2028 | 170,459,479.62 | 181,545,525.02 | |
| 2029 | 36,043,835.93 | ||
| Total | 272,750,289.72 | 253,464,624.61 |
7.18. Other non-current assets
Unit：CNY
| Item | Closing Balance | Opening Balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Prepayment for engineering and equipment | 235,101,375.05 | 235,101,375.05 | 186,654,437.03 | 186,654,437.03 | ||
| Prepayment for long-term assets | 172,245,993.10 | 172,245,993.101 | 172,245,993.10 | 172,245,993.10 | ||
| Total | 407,347,368.15 | 407,347,368.15 | 358,900,430.13 | 358,900,430.13 | ||
Note: 1 The prepayment for long-term assets was the corresponding advance payment for theprogress of the Chengdu Innovation and Development Center Building customized and constructedby the Company.
7.19. Assets with restricted ownership or use rights
Unit：CNY
| Item | Period-end | Period-beginning | ||||||
| Book balance | Book value | Type of restriction | Status of restriction | Book balance | Book value | Type of restriction | Status of restriction | |
| Cash and cash equivalents | 181,100,955.95 | 181,100,955.95 | Fixed deposit interest | Provision for fixed deposit interest on an accrual basis | 48,222,882.52 | 48,222,882.52 | Fixed deposit interest | Provision for fixed deposit interest on an accrual basis |
| Cash and cash equivalent | 18,000,003.44 | 18,000,003.44 | Litigation freeze | Frozen fund by the court | ||||
| s | ||||||||
| Cash and cash equivalents | 10,000,000.00 | 10,000,000.00 | Margin | Bank cash deposits for L/G | 10,000,000.00 | 10,000,000.00 | Margin | Bank cash deposits for L/G |
| Cash and cash equivalents | 1,627,857.48 | 1,627,857.48 | Margin | E-commerce platform margin | 772,930.90 | 772,930.90 | Margin | E-commerce platform margin |
| Total | 210,728,816.87 | 210,728,816.87 | 58,995,813.42 | 58,995,813.42 |
7.20. Held-for-trading financial liabilities
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Held-for-trading financial liabilities | 9,763.87 | |
| Including: | ||
| Foreign exchange forward transaction | 9,763.87 | |
| Including: | ||
| Total | 9,763.87 |
7.21. Accounts payable
7.21.1. Presentation of accounts payable
Unit：CNY
| Category | Closing Balance | Opening Balance |
| Engineering equipment expense | 854,220,902.47 | 1,494,451,313.86 |
| Materials and service expense | 990,276,304.31 | 862,772,419.35 |
| Total | 1,844,497,206.78 | 2,357,223,733.21 |
7.21.2. Significant accounts payable whose aging is longer than 1 year
Unit：CNY
| Category | Closing Balance | Reason for not payment or carrying forward |
| China Construction First Group Corporation Limited | 372,990,522.07 | Project payment within the contract settlement period |
| China Second Metallurgy Group Co., Ltd. | 161,255,355.43 | Project payment within the contract settlement period |
| KSEC Intelligent Technology Co., Ltd. | 119,148,909.07 | Project payment within the contract settlement period |
| Shanghai Defeng Advertising Communication Co., Ltd. | 40,000,000.00 | Outstanding advertising expenses |
| Luzhou Branch of Zhongqi Construction Group Huamao Co., Ltd. | 21,826,780.23 | Project payment within the contract settlement period |
| China Credit Investment Construction Group Co., Ltd. | 7,635,000.00 | Project payment within the contract settlement period |
| Total | 722,856,566.80 |
7.22. Other payables
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Dividend payable | 29,668,290.20 | 29,684,819.82 |
| Other payables | 843,927,138.88 | 1,121,036,342.71 |
| Total | 873,595,429.08 | 1,150,721,162.53 |
7.22.1. Dividend payable
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Dividend payable to minority shareholders of the Company’s subsidiary | 29,668,290.201 | 29,684,819.82 |
| Total | 29,668,290.20 | 29,684,819.82 |
Note: 1 The closing balance refer to the dividends distributed but not yet paid to minority shareholdersof the Company’s subsidiary Boda Marketing Company.
7.22.2. Other payables
7.22.2.1. Categories by nature
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Security deposit | 447,066,962.39 | 471,170,274.78 |
| Intercourse funds | 28,522,739.40 | 26,994,900.06 |
| Repurchase obligations of restricted shares | 345,699,443.89 | 616,743,610.59 |
| Others | 22,637,993.20 | 6,127,557.28 |
| Total | 843,927,138.88 | 1,121,036,342.71 |
7.22.2.2. Significant other payables whose aging are longer than 1 year
Unit：CNY
| Item | Closing Balance | Reason for not payment or carrying forward |
| Security deposits from suppliers | 31,720,147.50 | Within the contract performance period |
| Security deposits from dealers | 24,829,046.77 | Within the contract performance period |
| Total | 56,549,194.27 |
7.23. Contract liabilities
Unit：CNY
| Category | Closing Balance | Opening Balance |
| Within 1 year | 3,960,810,214.93 | 2,648,369,042.14 |
| 1-2 years | 11,557,251.98 | 11,257,914.75 |
| 2-3 years | 1,918,201.08 | 1,537,289.68 |
| Over 3 years | 3,845,860.89 | 11,812,843.73 |
| Total | 3,978,131,528.88 | 2,672,977,090.30 |
The Company shall comply with the disclosure requirements for companies engaging in food & liquorand wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation ofListed Companies—Industry-specific Information Disclosure.
Note: The carrying amount of contract liabilities at the period-end increased by CNY1,305,154,438.58 compared with that at the period-begin, accounting for 48.83%, which was mainlydue to the increase in advances on sales
The total amount of the top five companies in contract liabilities was CNY 1,999,064,056.48,accounting for 50.25%.
7.24. Employee benefits payable
7.24.1. Employee benefits payable shown as follows
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| 1. Short-term benefits | 495,138,782.21 | 1,177,343,466.57 | 1,148,445,189.11 | 524,037,059.67 |
| 2. Post-employment benefits- defined contribution plans | 28,718,957.67 | 168,820,385.42 | 167,995,633.77 | 29,543,709.32 |
| 3. Termination benefits | 8,971.53 | 8,971.53 | ||
| Total | 523,866,711.41 | 1,346,163,851.99 | 1,316,449,794.41 | 553,580,768.99 |
7.24.2. Short-term employee benefits payable shown as follows
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| 1. Wages, bonuses, allowances and grants | 441,221,793.71 | 972,418,249.12 | 939,482,951.09 | 474,157,091.74 |
| 2. Employees’ welfare | 20,489,403.79 | 20,489,403.79 | ||
| 3. Social insurance premiums | 10,323,076.28 | 73,287,351.70 | 77,322,704.98 | 6,287,723.00 |
| Including: Medical insurance premium | 8,947,557.56 | 70,147,578.32 | 74,992,527.41 | 4,102,608.47 |
| Work-related injury insurance | 1,375,518.72 | 3,139,773.38 | 2,330,177.57 | 2,185,114.53 |
| 4. Housing funds | 5,572,651.95 | 81,201,217.62 | 79,795,659.68 | 6,978,209.89 |
| 5. Labor union expenditures and employee education funds | 38,021,260.27 | 29,947,244.34 | 31,354,469.57 | 36,614,035.04 |
| Total | 495,138,782.21 | 1,177,343,466.57 | 1,148,445,189.11 | 524,037,059.67 |
7.24.3. Defined contribution plan shown as follows
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| 1. Basic endowment insurance premium | 21,964,091.48 | 103,679,476.27 | 105,609,361.85 | 20,034,205.90 |
| 2. Unemployment insurance premium | 331,799.76 | 3,916,975.15 | 3,983,678.09 | 265,096.82 |
| 3. Enterprise annuity | 6,423,066.43 | 61,223,934.00 | 58,402,593.83 | 9,244,406.60 |
| Total | 28,718,957.67 | 168,820,385.42 | 167,995,633.77 | 29,543,709.32 |
7.25. Taxes payable
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Value-added tax | 712,774,935.04 | 462,528,000.24 |
| Consumption tax | 1,446,813,372.13 | 1,255,405,887.03 |
| Enterprise income tax | 798,281,280.17 | 998,666,442.52 |
| Individual income tax | 11,091,390.13 | 7,810,885.88 |
| Urban maintenance and construction tax | 147,158,156.11 | 119,493,139.70 |
| Education surcharge | 63,919,687.59 | 51,286,192.79 |
| Local education surcharge | 43,486,324.21 | 34,299,228.87 |
| Stamp duty | 9,583,849.31 | 9,347,536.01 |
| Land use tax | 437,618.74 | 437,618.74 |
| Others | 401,983.65 | 352,601.22 |
| Total | 3,233,948,597.08 | 2,939,627,533.00 |
7.26. Non-current liabilities due within one year
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Long-term loans due within one year | 1,720,200,000.00 | 25,000,000.00 |
| Bonds payable due within one year | 1,499,788,498.36 | |
| Lease liabilities due within one year | 9,688,349.02 | 5,114,015.89 |
| Interest of long-term loans due within one year | 5,383,276.22 | 7,379,478.99 |
| Interest of bonds payable due within one year | 41,568,493.14 | 41,424,657.53 |
| Total | 3,276,628,616.74 | 78,918,152.41 |
7.27. Other current liabilities
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Output VAT to be transferred | 516,729,820.48 | 347,485,071.57 |
| Total | 516,729,820.48 | 347,485,071.57 |
7.28. Long-term loans
7.28.1. Long-term loans
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Credit loans | 8,000,100,000.00 | 10,025,300,000.00 |
| Less: Long-term loans due within one year | -1,720,200,000.00 | -25,000,000.00 |
| Total | 6,279,900,000.00 | 10,000,300,000.00 |
Other statements, including interest rate range:
The interest rate level of the Company’s long-term loans at the end of the period was loan prime rate(LPR) - corresponding basic points (BP) for 1-year/5-year and above loan terms.
7.29. Bonds payable
7.29.1. Bonds payable
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Corporate bonds in 2020 (Phase I) | 1,498,716,737.02 | |
| Total | 1,498,716,737.02 |
7.29.2. Increase/decrease of bonds payable (excluding other financial instrument classified asfinancial liabilities such as preferred shares and perpetual bonds)
Unit：CNY
| Bond name | Par value | Coupon rate | Issuing date | Duration | Issuing amount | Opening Balance | Issued in the current period | Withdrawal of interest by par value | Amortization of premium and depreciation | Repayment in the reporting period | Reclassification | Closing Balance | Default or not |
| Corporate bonds in 2020 (Phase I) | 1,500,000,000.00 | 3.50% | March 16, 2020 | 5 years | 1,494,000,000.00 | 1,498,716,737.02 | 52,500,000.00 | 1,071,761.34 | 1,499,788,498.36 | Not | |||
| Total | —— | 1,494,000,000.00 | 1,498,716,737.02 | 52,500,000.00 | 1,071,761.34 | 1,499,788,498.361 | —— | ||||||
Note: 1 The outstanding bonds of the Company at the period-begin/Corporate bonds in 2020 (Phase I)will mature in 2025, which shall be reclassified and presented as non-current liabilities due within oneyear accordingly. The Company paid off the principal and interest of the Corporate bonds in 2020(Phase I) as schedule on March 17, 2025.
7.30. Lease liabilities
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Lease payment | 38,789,939.06 | 32,472,149.33 |
| Less: unrecognized financing cost | -4,573,070.91 | -5,001,728.97 |
| Less: lease liabilities due within one year | -9,688,349.02 | -5,114,015.89 |
| Total | 24,528,519.13 | 22,356,404.47 |
7.31. Deferred income
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance | Reason |
| Government grants | 27,772,083.74 | 71,041,000.00 | 12,140,356.91 | 86,672,726.83 | Reception of financial allocation |
| Total | 27,772,083.74 | 71,041,000.00 | 12,140,356.91 | 86,672,726.83 | -- |
Other statements:
Details:
| Item | Opening Balance | Increase in current period | Other income in current period | Closing Balance | Related to assets/ income |
| Technological transformation project of Luzhou Laojiao Intelligent Packing Center | 59,619,000.00 | 993,650.00 | 58,625,350.00 | Related to assets | |
| Digital upgrade project of supply chain management for Luzhou Laojiao Intelligent Packing Center | 8,862,000.00 | 147,700.00 | 8,714,300.00 | Related to assets | |
| New mode application project of digital workshop for solid state baijiu production | 3,495,363.94 | 1,553,495.10 | 1,941,868.84 | Related to assets | |
| Construction project of liquor room of Luzhou Laojiao brewing technical renovation | 6,042,857.20 | 2,685,714.29 | 3,357,142.91 | Related to assets | |
| Luzhou Laojiao automatic baijiu production line technical renovation project | 785,934.06 | 349,304.03 | 436,630.03 | Related to assets | |
| Boiler reconstruction project of Luohan Brewing Base of Luzhou Laojiao | 5,057,142.86 | 1,264,285.71 | 3,792,857.15 | Related to assets | |
| Brewing wastewater treatment project | 7,714,285.68 | 3,428,571.43 | 4,285,714.25 | Related to assets | |
| Improvement and technical renovation project of Luzhou Laojiao production supporting | 4,676,500.00 | 2,560,000.00 | 1,717,636.35 | 5,518,863.65 | Related to assets |
| Total | 27,772,083.74 | 71,041,000.00 | 12,140,356.91 | 86,672,726.83 |
7.32. Share capital
Unit：CNY
| Opening Balance | Increases/decreases in the current period (+, -) | Closing Balance | |||||
| Issuance of new shares | Bonds share | Conversion of reserves funds into shares | Others | Subtotal | |||
| Total number of shares | 1,471,987,769.00 | -36,266.00 | -36,266.001 | 1,471,951,503.00 | |||
Note: 1 In 2024, among the incentive recipients of the Company’s 2021 Restricted Share IncentivePlan (Draft), five incentive recipients no longer met the incentive conditions due to job transfer,resignation or other reasons. According to the relevant provisions of the incentive plan, a total of36,266 restricted shares that have been granted to the above-mentioned incentive recipients but havenot yet been released from restrictions will be repurchased and canceled by the Company.
Other statements:
7.33. Capital reserves
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| Share premium (capital premium) | 4,205,307,212.40 | 425,852,005.91 | 3,325,954.86 | 4,627,833,263.45 |
| Other capital reserves | 980,174,310.82 | 183,607,998.19 | 425,852,005.91 | 737,930,303.10 |
| Total | 5,185,481,523.22 | 609,460,004.10 | 429,177,960.77 | 5,365,763,566.55 |
Other statements, including increase/decrease and reasons thereof:
Note 1: The share premium increased this year because some restricted shares granted have beenreleased from restrictions upon maturity.Note 2: The increase in other capital reserve for the current period was the costs and expensesattributable to the parent company to be recognized in the current period for the issuance of restrictedshares.
7.34. Treasury shares
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| Perform the repurchase obligations under the equity incentive | 616,743,610.59 | 271,044,166.70 | 345,699,443.89 | |
| Total | 616,743,610.59 | 271,044,166.70 | 345,699,443.89 |
Other statements, including notes to increase and decrease during the reporting period and thereasons for changes:
The treasury shares reduced by CNY 271,044,166.70 for the current period due to the repurchaseand cancellation of restricted shares and the expiration and lifting of restrictions on some granted
restricted shares.
7.35. Other comprehensive income
Unit：CNY
| Item | Opening Balance | Current Period | Closing Balance | |||||
| Amount in current period before income tax | Less: Previously recognized in other comprehensive income transferred to profit and loss | Less: Previously recognized in other comprehensive income transferred to retained earnings | Less: Income tax | Amount attribute to parent company after tax | Amount attribute to non-controlling shareholders after tax | |||
| I. Other comprehensive income that will not be reclassified into profit and loss | 96,948,563.88 | 3,388,621.68 | 91,051.49 | 3,297,570.19 | 100,246,134.07 | |||
| Other comprehensive income that will not be reclassified into profit and loss under equity method | 106,537.86 | 162,693.33 | 91,051.49 | 71,641.84 | 178,179.70 | |||
| Fair value changes of other equity instrument investment | 96,842,026.02 | 3,225,928.35 | 3,225,928.35 | 100,067,954.37 | ||||
| II. Other comprehensive income that will be reclassified into profit and loss | -33,818,094.37 | 18,473,305.49 | 17,807,075.68 | 666,229.81 | -16,011,018.69 | |||
| Including: Other comprehensive income that will be reclassifie | -36,784,191.34 | 16,992,055.15 | 16,992,055.15 | -19,792,136.19 | ||||
| d into profit and loss under equity method | ||||||||
| Difference from conversion of financial statements in foreign currency | 2,966,096.97 | 1,481,250.34 | 815,020.53 | 666,229.81 | 3,781,117.50 | |||
| Total | 63,130,469.51 | 21,861,927.17 | 91,051.49 | 21,104,645.87 | 666,229.81 | 84,235,115.38 |
7.36. Surplus reserves
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance |
| Statutory surplus reserves | 1,471,987,769.00 | 36,266.00 | 1,471,951,503.00 | |
| Total | 1,471,987,769.00 | 36,266.00 | 1,471,951,503.00 |
Statements of surplus reserves, including notes to increase and decrease during the reporting periodand the reasons for changes:
The provision ratio of the Company’s statutory surplus reserves has always remained at 100% of theshare capital. Therefore, it has been adjusted accordingly with the reduction of share repurchase thisyear.
7.37. Undistributed profits
Unit：CNY
| Item | Current Period | Previous Period |
| Undistributed profit before adjustment at the end of the last year | 33,815,566,574.75 | 26,772,197,213.98 |
| Undistributed profit after adjustment at the beginning of year | 33,815,566,574.75 | 26,772,197,213.98 |
| Plus: Net profit attributable to owners of the parent company for the current period | 13,472,986,476.01 | 13,246,394,700.59 |
| Less: Provision of statutory surplus reserves | -36,266.00 | 92,669.00 |
| Ordinary share dividends payable | 7,948,382,058.83 | 6,219,148,324.03 |
| Plus: Other transfer in | 91,051.49 | 16,215,653.21 |
| Undistributed profits at the end of the period | 39,340,298,309.42 | 33,815,566,574.75 |
7.38. Operating revenue and cost of sales
Unit：CNY
| Item | Current Period | Previous Period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Primary business | 30,742,480,590.43 | 3,719,472,050.52 | 29,832,432,932.59 | 3,354,136,725.57 |
| Other business | 453,767,617.90 | 168,644,133.41 | 400,868,455.67 | 183,014,677.58 |
| Total | 31,196,248,208.33 | 3,888,116,183.93 | 30,233,301,388.26 | 3,537,151,403.15 |
Whether the lower of the Company’s total profit, net profit, net profit after deduction of non-recurringgains and losses for the most recent fiscal year through audit is negative
□Yes ? No
Details:
Unit：CNY
| Contract category | Baijiu sales | Total | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Commodity type | ||||
| Including: | ||||
| Medium and high grade baijiu | 27,585,319,704.62 | 2,248,007,003.01 | 27,585,319,704.62 | 2,248,007,003.01 |
| Other baijiu | 3,467,333,632.93 | 1,596,410,927.94 | 3,467,333,632.93 | 1,596,410,927.94 |
| Other revenue | 143,594,870.78 | 43,698,252.98 | 143,594,870.78 | 43,698,252.98 |
| By operating segment | ||||
| Including: | ||||
| Domestic | 31,010,093,741.29 | 3,862,718,079.68 | 31,010,093,741.29 | 3,862,718,079.68 |
| Outbound | 186,154,467.04 | 25,398,104.25 | 186,154,467.04 | 25,398,104.25 |
| Market or customer type | ||||
| Including: | ||||
| Contract type | ||||
| Including: | ||||
| Recognize revenue at point in time | 31,091,711,234.37 | 3,850,612,763.96 | 31,091,711,234.37 | 3,850,612,763.96 |
| Recognize revenue by time period | 104,536,973.96 | 37,503,419.97 | 104,536,973.96 | 37,503,419.97 |
| By commodity transfer time | ||||
| Including: | ||||
| By contract term | ||||
| Including: | ||||
| By sales | ||||
| channel | ||||
| Including: | ||||
| Total | 31,196,248,208.33 | 3,888,116,183.93 | 31,196,248,208.33 | 3,888,116,183.93 |
Other statementsThe Company's main business is the production and sale of baijiu. Revenue is recognized at the pointwhen the Company transfers control of the relevant goods to the customer and fulfills its performanceobligations.
Information in relation to the transaction price apportioned to the residual contract performanceobligation:
The amount of revenue corresponding to performance obligations of contracts signed but notperformed or not fully performed yet was CNY 3,978,131,528.88 at the period-end, among whichCNY 3,978,131,528.88 was expected to be recognized in 2025.
7.39. Business taxes and surcharges
Unit：CNY
| Item | Current Period | Previous Period |
| Consumption tax | 3,758,818,690.82 | 3,240,865,419.12 |
| Urban maintenance and construction tax | 493,311,257.37 | 441,952,895.02 |
| Educational surcharge | 214,918,037.88 | 189,596,044.62 |
| Property tax | 77,927,281.84 | 72,159,092.39 |
| Land use tax | 34,031,578.65 | 34,404,828.33 |
| Stamp duty | 31,293,251.08 | 27,591,982.98 |
| Local education surcharge | 143,278,691.91 | 126,397,571.29 |
| Others | 176,791.63 | 158,516.93 |
| Total | 4,753,755,581.18 | 4,133,126,350.68 |
7.40. General and administrative expenses
Unit：CNY
| Item | Current Period | Previous Period |
| Employee compensation | 477,879,760.77 | 438,391,560.79 |
| Depreciation and amortization | 106,444,738.22 | 119,690,409.04 |
| Share-based payment expense | 100,696,953.42 | 206,559,351.04 |
| Service expense and others | 415,758,512.15 | 374,839,356.36 |
| Total | 1,100,779,964.56 | 1,139,480,677.23 |
7.41. Selling and distribution expenses
Unit：CNY
| Item | Current Period | Previous Period |
| Advertising promotion expense | 1,548,153,847.96 | 1,614,086,963.33 |
| Promotion expense | 1,109,741,814.61 | 1,479,620,839.26 |
| Employee compensation | 387,418,851.76 | 297,757,314.24 |
| Storage and logistics costs | 162,568,387.89 | 198,741,925.26 |
| Share-based payment expense | 48,618,883.85 | 98,732,302.98 |
| Others | 281,880,829.92 | 285,486,181.85 |
| Total | 3,538,382,615.99 | 3,974,425,526.92 |
7.42. Research and development expenses
Unit：CNY
| Item | Current Period | Previous Period |
| Comprehensive research and development expenses | 260,975,311.10 | 225,955,797.33 |
| Total | 260,975,311.10 | 225,955,797.33 |
7.43. Financial expenses
Unit：CNY
| Item | Current Period | Previous Period |
| Interest expenses | 304,312,417.151 | 488,003,010.93 |
| Less: Interest income | -797,923,434.30 | -864,006,165.58 |
| Losses from currency exchange | -3,165,346.43 | -2,201,671.82 |
| Handling charges | 7,119,485.05 | 6,292,845.93 |
| Amortization of unrecognized financing costs | 1,135,819.21 | 759,774.13 |
| Total | -488,521,059.32 | -371,152,206.41 |
Note: 1 The interest expenses decreased by 37.64% year-on-year, mainly due to the reclassificationand presentation of bill discounting expenses as investment income.
7.44. Other income
Unit：CNY
| Source | Current Period | Previous Period |
| Government grants | 41,225,885.28 | 51,950,003.11 |
| Other refund (Individual income tax handling fee refund) | 2,526,666.45 | 2,229,602.28 |
| Total | 43,752,551.73 | 54,179,605.39 |
7.45. Gain on changes in fair value
Unit：CNY
| Source | Current Period | Previous Period |
| Held-for-trading financial assets | 27,528,769.00 | 62,998,156.40 |
| Held-for-trading financial liabilities | 9,870.60 | -9,694.10 |
| Total | 27,538,639.60 | 62,988,462.30 |
7.46. Investment income
Unit：CNY
| Item | Current Period | Previous Period |
| Investment income from long-term equity investments under the equity method | 106,578,492.71 | 66,927,156.69 |
| Investment income from disposal of long-term equity investments | 9,330,148.27 | |
| Investment income gained during the period of holding held-for-trading financial assets | 46,953,767.52 | 2,391,009.80 |
| Investment income from disposal of held-for-trading financial assets | -29,465,560.31 | 5,290,247.46 |
| Dividend income gained during the period of holding other equity instrument investment | 14,976,454.55 | 11,268,626.39 |
| Income from derecognition of financial assets measured at fair value with changes recorded in other comprehensive income | -158,251,822.921 | |
| Investment income from early redemption of bonds | -1,055,251.33 | |
| Investment losses from foreign exchange forward transaction | -14,339.62 | -97,207.03 |
| Total | -9,892,859.80 | 84,724,581.98 |
Note: 1 The Company presented the discounting expenses of derecognized bank acceptance billsunder this account.
Other statements:
Including: investment income from long-term equity investments under the equity method:
| Item | Current Period | Previous Period |
| Huaxi Securities Co., Ltd. | 75,663,468.99 | 44,167,627.40 |
| Luzhou Laojiao Postdoctoral Workstation Technology Innovation Co., Ltd. | -1,657,275.64 | -1,846,843.26 |
| Sichuan Development Liquor Investment Co., Ltd. | -19,699.92 | 8,326.61 |
| Sichuan Tongniang Baijiu Industry Technology Research Institute Co., Ltd. | -67,425.97 | 253,536.99 |
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 30,048,548.68 | 24,344,508.95 |
| Sichuan Tianfu Granary Liquor Industry Co., Ltd. | 2,610,876.57 | |
| Total | 106,578,492.71 | 66,927,156.69 |
Including: dividend income gained during the period of holding other equity instrument investment:
| Item | Current Period | Previous Period |
| North Chemical Industries Co., Ltd. | 78,177.75 | 78,177.75 |
| Guotai Haitong Securities Co., Ltd. | 6,477,348.35 | 6,241,808.41 |
| Luzhou Sanrenxuan Liquor Industry Co., Ltd. | 2,500,000.00 | 500,000.00 |
| Luzhou Bank Co., Ltd. | 3,905,280.00 | 3,471,360.00 |
| China Tourism Group Duty Free Corporation Limited | 2,015,648.45 | 977,280.23 |
| Total | 14,976,454.55 | 11,268,626.39 |
7.47. Credit impairment loss
Unit：CNY
| Item | Current Period | Previous Period |
| Bad debt loss of accounts receivable | 711,115.91 | -964,767.06 |
| Bad debt loss of other receivables | 921,121.70 | 1,897,008.76 |
| Total | 1,632,237.61 | 932,241.70 |
7.48. Gains from disposal of assets
Unit：CNY
| Source | Current Period | Previous Period |
| Gains from disposal of fixed assets | 1,058,750.22 | 35,447,138.00 |
| Gains from disposal of intangible assets | 8,980,400.30 | |
| Gains from disposal of investment property | ||
| Gains from disposal of use right assets | 266,700.07 | |
| Total | 1,058,750.22 | 44,694,238.37 |
7.49. Non-operating income
Unit：CNY
| Item | Current Period | Previous Period | The amount included in the extraordinary gains and losses of the current period |
| Gains from retirement of non-current assets | 3,920,498.91 | ||
| Compensation for default | 19,994,603.60 | 29,859,330.01 | 19,994,603.60 |
| Others | 4,235,258.66 | 2,424,034.25 | 4,235,258.66 |
| Total | 24,229,862.26 | 36,203,863.17 | 24,229,862.26 |
7.50. Non-operating costs
Unit：CNY
| Item | Current Period | Previous Period | The amount included in the extraordinary gains and losses of the current period |
| Donation | 11,979,052.40 | 21,381,120.00 | 11,979,052.40 |
| Losses from damage retirement of non-current assets | 13,325,050.92 | 2,570,236.31 | 13,325,050.92 |
| Others | 475,870.15 | 48,127,919.52 | 475,870.15 |
| Total | 25,779,973.47 | 72,079,275.83 | 25,779,973.47 |
7.51. Income tax expense
7.51.1. Statement of income tax expense
Unit：CNY
| Item | Current Period | Previous Period |
| Current period income tax | 4,442,748,346.01 | 4,119,788,148.40 |
| Deferred income tax | 264,771,902.14 | 397,509,384.83 |
| Total | 4,707,520,248.15 | 4,517,297,533.23 |
7.51.2. Adjustment for accounting profit and income tax expense
Unit：CNY
| Item | Current Period |
| Total profit | 18,205,298,819.04 |
| Income tax expenses determined by statutory/applicable tax rate | 4,551,324,704.76 |
| Impact from subsidiaries’ different tax rates | -1,882,116.86 |
| Impact from adjust for impact from income tax expense in previous period | 87,848,397.53 |
| Impact from non-taxable income | -21,188,705.92 |
| Impact from non-deductible costs, expenses and losses | 898,822.28 |
| Impact from deductible temporary difference or losses due to unrecognized deferred tax asset in current period | 11,590,906.04 |
| Income tax impact of expected pre-tax deductible amounts of restricted shares in future periods that are less than the recognized cost and expenses | 78,876,256.48 |
| Impact from deductible temporary difference of unrecognized deferred income tax assets in prior period | |
| Impact from recognition of other taxable difference of unrecognized deferred income tax liabilities in prior period as deferred income tax liabilities in current period | 51,983.83 |
| Income tax expense | 4,707,520,248.15 |
7.52. Other comprehensive income
Details in Note 7.35. Other comprehensive income.
7.53. Notes to the statement of cash flow
7.53.1. Cash related to operating activities
Cash received from other operating activities
Unit：CNY
| Item | Current Period | Previous Period |
| Recovery of saving deposits involving contract disputes | 3,465,620.33 | 1,484,623.48 |
| Government grants | 103,303,033.55 | 46,017,763.05 |
| Interest income from bank deposit | 667,147,733.48 | 831,459,358.12 |
| Others | 195,416,669.46 | 392,483,116.17 |
| Total | 969,333,056.82 | 1,271,444,860.82 |
Cash paid for other operating activities
Unit：CNY
| Item | Current Period | Previous Period |
| Cash paid for expenses | 2,204,134,745.45 | 2,466,131,087.54 |
| Restricted court frozen funds paid | 18,000,003.44 | |
| Cash paid to E-commerce platform as security deposit | 3,979,979.79 | 772,930.90 |
| Total | 2,226,114,728.68 | 2,466,904,018.44 |
7.53.2. Cash related to investing activities
Cash received from significant investing activities
Unit：CNY
| Item | Current Period | Previous Period |
| Recovering the principal invested in held-for-trading financial assets | 2,160,000,000.00 | 1,400,000,000.00 |
| Total | 2,160,000,000.00 | 1,400,000,000.00 |
Cash paid for other investing activities
Unit：CNY
| Item | Current Period | Previous Period |
| Loss on forward exchange settlement | 14,339.62 | 97,207.03 |
| Total | 14,339.62 | 97,207.03 |
Cash paid for significant investing activities
Unit：CNY
| Item | Current Period | Previous Period |
| Cash paid for purchasing long-term assets | 1,188,370,866.64 | 1,501,625,135.45 |
| Cash paid for purchasing held-for-trading financial assets | 2,460,000,000.00 | 1,700,000,000.00 |
| Total | 3,648,370,866.64 | 3,201,625,135.45 |
7.53.3. Cash related to financing activities
Cash paid for other financing activities
Unit：CNY
| Item | Current Period | Previous Period |
| Refund of minority shareholders’ investments when a subsidiary was deregistered | 9,074,676.53 | |
| Cash paid for repurchase of restricted shares | 3,025,890.81 | |
| Net losses from put-back of bonds | 1,055,251.33 | |
| Cash paid for rent of right-of-use assets | 8,138,594.92 | 6,547,996.56 |
| Total | 20,239,162.26 | 7,603,247.89 |
Changes in liabilities arising from financing activities?Applicable □ N/A
Unit：CNY
| Item | Opening Balance | Increase in current period | Decrease in current period | Closing Balance | ||
| Cash change | Non-cash change | Cash change | Non-cash change | |||
| Long-term loans (including long-term loans due within one year) | 10,032,679,478.99 | 2,000,000,000.00 | 250,575,794.36 | 4,277,771,997.13 | 8,005,483,276.22 | |
| Bonds | 1,540,141,394 | 53,715,596.95 | 52,500,000.00 | 1,541,356,991 | ||
| payable (including bonds payable due within one year) | .55 | .50 | ||||
| Lease liabilities (including lease liabilities due within one year) | 27,470,420.36 | 14,879,042.71 | 8,132,594.92 | 34,216,868.15 | ||
| Other payables (Repurchase obligations of restricted shares) | 616,743,610.59 | 3,010,350.11 | 268,033,816.59 | 345,699,443.89 | ||
| Total | 12,217,034,904.49 | 2,000,000,000.00 | 319,170,434.02 | 4,341,414,942.16 | 268,033,816.59 | 9,926,756,579.76 |
7.54. Supplementary information to statement of cash flow
7.54.1. Supplementary information to statement of cash flow
Unit：CNY
| Item | Current Period | Previous Period |
| 1. Reconciliation of net profit to cash flow from operating activities: | ||
| Net profit | 13,497,778,570.89 | 13,288,660,023.21 |
| Plus: Provision for asset impairment | -1,632,237.61 | -932,241.70 |
| Depreciation of fixed asset, oil and gas assets and productive biological assets | 680,834,155.15 | 587,432,455.60 |
| Depreciation of right-of-use assets | 9,694,652.62 | 9,851,802.53 |
| Amortization of intangible assets | 92,110,427.08 | 79,694,038.52 |
| Amortization of long-term deferred expense | 715,835.64 | 498,487.93 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (Gains use “-”) | -1,058,750.22 | -44,694,238.37 |
| Losses from retirement of fixed assets (Gains use “-”) | 13,325,050.92 | -1,350,262.60 |
| Losses from change in fair value (Gains use “-”) | -27,538,639.60 | -62,988,462.30 |
| Financial expenses (Gains use “-”) | 302,282,889.93 | 323,773,618.88 |
| Losses on investments (Gains use “-”) | -148,358,963.12 | -84,724,581.98 |
| Decrease in deferred income tax assets (Increase uses “-”) | 250,244,524.88 | 351,976,919.74 |
| Increase in deferred income tax liabilities (Decrease uses “-”) | 15,602,686.66 | 45,532,465.09 |
| Decrease in inventories (Increase use “-”) | -1,770,750,528.50 | -1,781,301,572.61 |
| Decrease in operating receivables (Increase use “-”) | 4,167,999,841.68 | -1,506,903,239.71 |
| Increase in operating payables (Decrease use “-”) | 2,100,518,847.25 | -556,160,276.77 |
| Others | ||
| Net cash flows from operating activities | 19,181,768,363.65 | 10,648,364,935.46 |
| 2. Significant investing and financing activities not involving cash: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets under financing lease | ||
| 3.Net change in cash and cash equivalents: | ||
| Closing balance of cash | 33,367,668,014.461 | 25,893,029,277.86 |
| Less: Opening balance of cash | 25,893,029,277.86 | 17,729,006,591.87 |
| Plus: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net change in cash and cash equivalents | 7,474,638,736.60 | 8,164,022,685.99 |
Note: 1 The amount of direct payment for goods and long-term assets (not involving cash flows) bythe endorsement of bank acceptances receivable in the current and previous periods was CNY753,480,000.00 and CNY 799,668,426.34, respectively, which were not included in "cash receivedfrom sales of goods or rendering of services", "cash paid for goods and services" and "cash paid forthe purchase of fixed assets, intangible assets and other long-term assets" of the cash flow budget.
7.54.2. Composition of cash and cash equivalent
Unit：CNY
| Item | Opening Balance | Closing Balance |
| 1. Cash | 33,367,668,014.46 | 25,893,029,277.86 |
| Including: Cash on hand | 27,640.75 | 24,059.24 |
| Unrestricted bank deposit | 33,325,611,589.29 | 25,868,408,012.31 |
| Other unrestricted cash and cash equivalents | 42,028,784.42 | 24,597,206.31 |
| 3. Closing balance of cash and cash equivalents | 33,367,668,014.46 | 25,893,029,277.86 |
7.54.3. Monetary funds not classified as cash and cash equivalents
Unit：CNY
| Item | Current Period | Previous Period | Reason |
| Bank deposit | 181,100,955.95 | 48,222,882.52 | Provision for fixed deposit interest on an accrual basis |
| Other monetary funds | 18,000,003.44 | Frozen fund by the court | |
| Other monetary funds | 10,000,000.00 | 10,000,000.00 | Bank cash deposits for L/G |
| Other monetary funds | 1,627,857.48 | 772,930.90 | Restricted cash deposit in E-commerce platforms |
| Total | 210,728,816.87 | 58,995,813.42 |
7.54.4. Relationship between cash and cash equivalents in the balance sheet and cash in thestatement of cash flow
| Item | Closing Balance | Opening Balance |
| Cash and cash equivalents in the balance sheet | 33,578,396,831.33 | 25,952,025,091.28 |
| Including: Cash on hand | 27,640.75 | 24,059.24 |
| Bank deposit | 33,506,712,545.24 | 25,916,630,894.83 |
| Other cash and cash equivalents | 71,656,645.34 | 35,370,137.21 |
| Less: Other restricted cash and cash equivalents (amount not included in cash) | 29,631,860.89 | 10,772,930.90 |
| Including: Restricted cash deposits for L/G | 10,000,000.00 | 10,000,000.00 |
| Third-party platform funds | 1,627,857.48 | 772,930.90 |
| Restricted frozen funds | 18,000,003.44 | |
| Less: Interest receivable | 181,100,955.95 | 48,222,882.52 |
| Cash in the statement of cash flow | 33,367,668,014.46 | 25,893,029,277.86 |
7.55. Notes to items of the statements of changes in owners' equityNotes to the name of “Other” of closing balance at the end of the previous year adjusted and theamount adjusted:
N/A
7.56. Foreign currency transactions
7.56.1. Foreign currency transactions
Unit：CNY
| Item | Closing Balance in Foreign Currency | Exchange Rate | Closing Balance in CNY |
| Cash at Bank and on Hand | 125,945,823.00 | ||
| Including: USD | 15,772,833.75 | 7.1884 | 113,381,438.13 |
| EUR | 328.11 | 7.5257 | 2,469.26 |
| HKD | 13,563,547.15 | 0.92604 | 12,560,387.20 |
| AUD | 339.12 | 4.507 | 1,528.41 |
| Accounts Receivable | 4,294,258.79 | ||
| Including: USD | |||
| EUR | |||
| HKD | 4,637,228.19 | 0.92604 | 4,294,258.79 |
| Long-term Loans | |||
| Including: USD | |||
| EUR | |||
| HKD | |||
| Other Receivables | 6,032,279.87 | ||
| Including: USD | 18,697.65 | 7.1884 | 134,406.19 |
| HKD | 6,368,918.92 | 0.92604 | 5,897,873.68 |
| Accounts Payable | 567,662.64 |
| Including: USD | 0.50 | 7.1884 | 3.59 |
| HKD | 612,996.25 | 0.92604 | 567,659.05 |
| Other Payables | 23,342,169.44 | ||
| Including: USD | 14,862.33 | 7.1884 | 106,836.37 |
| HKD | 25,091,068.50 | 0.92604 | 23,235,333.07 |
| Prepayments | 939,697.59 | ||
| Including: USD | 5,291.50 | 7.1884 | 38,037.42 |
| HKD | 973,673.03 | 0.92604 | 901,660.17 |
| Non-current liabilities due within one year | 4,185,537.56 | ||
| Including: USD | 67,410.06 | 7.1884 | 484,570.48 |
| HKD | 3,996,552.07 | 0.92604 | 3,700,967.08 |
| Lease liabilities | 5,019,797.03 | ||
| Including: USD | 77,832.23 | 7.1884 | 559,489.20 |
| HKD | 4,816,539.06 | 0.92604 | 4,460,307.83 |
7.56.2. Description of the foreign business entity, including the important foreign businessentity, shall disclose its main foreign business place, bookkeeping standard currency andselection basis, and shall also disclose the reason for the change of the bookkeepingstandard currency? Applicable □ N/A
| Company | Operation site | Bookkeeping currency | Choosing Reason |
| Luzhou Laojiao International Development (Hong Kong) Co., Ltd. | Hong Kong, China | HKD | Currency in the registration place |
| Luzhou Laojiao Commercial Development (North America) Co., Ltd. | USA | USD | Currency in the registration place |
| Mingjiang Co., Ltd. | USA | USD | Currency in the registration place |
7.57. Lease
7.57.1. The Company as lessee
?Applicable □ N/AVariable lease payments that are not covered in the measurement of the lease liabilities
□Applicable ? N/A
Simplified short-term lease or lease expense for low-value assets?Applicable □ N/AThe Company uses a simplified approach for short-term leases, where the right-of-use assets andlease liabilities are not recognized. Short-term leases accounted for as expenses in the current periodare listed below:
| Item | 2024 | 2023 |
| Short-term lease expenses recognized as current profit or loss in the current period using the simplified approach | 8,276,228.61 | 9,494,225.98 |
| Total cash outflows related to leases | 16,408,823.53 | 16,042,222.54 |
Note: The leased assets of the Company include the buildings and constructions and the land useright involved in operation. The leasing period of land use right is normally 15-30 years and the leasecontract of land use right generally includes the renewal option clause.
Circumstances involving sale and leaseback transactionsN/A
7.57.2. The Company as lessor
Operating leases with the Company as lessor? Applicable □ N/A
Unit：CNY
| Item | Rental income | Of which: income related to variable lease payments not included in lease receipts |
| Income from rental of buildings, equipment, etc. | 11,134,073.64 | |
| Total | 11,134,073.64 |
Finance leases with the Company as lessor
□Applicable ? N/A
Undiscounted lease receipts for each of the next five years
□Applicable ? N/A
Reconciliation of undiscounted lease receipts to net lease investments
7.57.3. Recognition of gain or loss on sales under finance leases with the company as amanufacturer or dealer
□Applicable ? N/A
7.58. Others
N/A
8. Research and Development Expenditure
Unit：CNY
| Item | Current Period | Previous Period |
| Material consumption | 41,829,620.38 | 45,375,170.08 |
| Research and development and technical services | 70,364,674.63 | 69,745,731.02 |
| Share payment expense | 12,843,885.44 | 25,097,365.62 |
| Other indirect costs | 135,937,130.65 | 85,737,530.61 |
| Total | 260,975,311.10 | 225,955,797.33 |
| Of which: Expensed research and development expenditure | 260,975,311.10 | 225,955,797.33 |
9. Changes in consolidated scope
9.1. Business combination not under common control
9.1.1. Business combination not under common control during current periodThere is no business combination not under common control during current period.
9.2. Business combination under common control
9.2.1. Business combination under common control during current periodThere is no business combination under common control during current period.
9.3. Reverse purchase
The basic information of the transaction, the basis of the transaction constitutes the reverse purchase,whether the assets and liabilities retained by the listed company constitute the business and its basis,the determination of the merger cost, and the adjustment of the equity amount and its calculationaccording to the equity transaction:
There is no reverse purchase during current period.
9.4. Disposing subsidiaries
Whether there is a situation of losing control after disposing the investment in the subsidiary onlyonce
□ Yes ?No
Whether there is a situation of disposing the investment in the subsidiary through several transactionsstep by step and losing control during the period
□ Yes ?No
9.5. Consolidated scope changes due to other reasons
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary,liquidating a subsidiary) and its related situation:
Luzhou Laojiao Whitail Liquor Industry Co., Ltd., a subsidiary of the Company, was liquidated and de-registered in June 2024. And it has thus been excluded from the consolidated financial statements ofthe Company.
9.6. Other
No
10. Interests in other entities
10.1. Interests in subsidiaries
10.1.1. Group composition
Unit：CNY
| Name of Subsidiaries | Registered capital | Major business location | Place of registration | Nature of business | Shareholding Proportion | Acquisition method | |
| Direct | Indirect | ||||||
| Luzhou Laojiao Brewing Co., Ltd. | 487,582,236.00 | Luzhou | Luzhou | Baijiu manufacture and sales | 100.00% | Investment | |
| Luzhou Red Sorghum Modern Agricultural Development Co., Ltd. | 10,000,000.00 | Luzhou | Luzhou | Agricultural product planting and sales | 60.00% | Business combination under common control | |
| Luzhou Laojiao Sales Co., Ltd. | 100,000,000.00 | Luzhou | Luzhou | Baijiu sales | 100.00% | Investment | |
| Luzhou Laojiao Nostalgic Liquor Marketing Co., Ltd. | 5,000,000.00 | Luzhou | Luzhou | Baijiu sales | 100.00% | Investment | |
| Luzhou Laojiao Selected Supply Chain Management Co., Ltd. | 10,000,000.00 | Luzhou | Luzhou | Baijiu sales | 100.00% | Investment | |
| Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd. | 10,000,000.00 | Qinzhou | Qinzhou | Red wine production and sales | 100.00% | Investment | |
| Luzhou Dingli Liquor Industry Co., Ltd. | 5,000,000.00 | Luzhou | Luzhou | Baijiu sales | 100.00% | Investment | |
| Luzhou Laojiao Qiankun Cheteau Custom Liquor Sales Co., Ltd.2 | 5,000,000.00 | Luzhou | Luzhou | Baijiu sales | 100.00% | Investment | |
| Luzhou Laojiao New Liquor Industry Co., Ltd. | 5,000,000.00 | Luzhou | Luzhou | Baijiu sales | 100.00% | Investment | |
| Luzhou | 3,000,000.0 | Luzhou | Luzhou | Liquor | 100.00% | Investment | |
| Laojiao I & E Co., Ltd. | 0 | import and export trade | |||||
| Luzhou Laojiao Boda Liquor Industry Marketing Co., Ltd. | 120,000,000.00 | Luzhou | Luzhou | Baijiu sales | 75.00% | Investment | |
| Luzhou Laojiao Fruit Wine Industry Co., Ltd. | 50,000,000.00 | Luzhou | Luzhou | Fruit wine sales | 41.00% | Investment | |
| Mingjiang Co., Ltd. (USD) | 6,000,000.00 | America | America | Baijiu sales | 54.00% | Investment | |
| Luzhou Laojiao International Trade (Hainan) Co., Ltd. | 20,000,000.00 | Hainan | Hainan | Food import and export | 100.00% | Investment | |
| Luzhou Pinchuang Technology Co., Ltd. | 50,000,000.00 | Luzhou | Luzhou | Technology development and service | 100.00% | Investment | |
| Luzhou Laojiao International Development (Hong Kong) Co., Ltd. (HKD) | 10,000.00 | Hong Kong | Hong Kong | Liquor sales | 55.00% | Investment | |
| Luzhou Laojiao Commercial Development (North America) Co., Ltd. (USD) | 500,000.00 | America | America | Business development | 100.00% | Investment | |
| Luzhou Laojiao Electronic Commerce Co., Ltd. | 60,000,000.00 | Luzhou | Luzhou | Liquor sales | 90.00% | Investment | |
| Luzhou Laojiao Whitail Liquor Industry Co., Ltd. 1 | 10,000,000.00 | Luzhou | Luzhou | Liquor sales | 35.00% | Investment | |
| Luzhou Laojiao Health Liquor Industry Co., Ltd. | 10,000,000.00 | Luzhou | Luzhou | Health care liquor manufacture and sales | 100.00% | Business combination under common control | |
| Luzhou Laojiao Health Sales Co., Ltd. | 5,000,000.00 | Luzhou | Luzhou | Health care liquor sales | 100.00% | Business combination under common control | |
| Luzhou Laojiao New Retail | 50,000,000.00 | Luzhou | Luzhou | Baijiu sales | 40.00% | 60.00% | Investment |
| Co., Ltd. | |||||||
| Luzhou Laojiao Technology Innovation Co., Ltd. | 500,000,000.00 | Chengdu | Chengdu | Technology development and service | 40.00% | 60.00% | Investment |
Note: 1 Luzhou Laojiao Whitail Liquor Industry Co., Ltd. was liquidated and canceled in June 2024.
Statement for that the proportion of share-holding is different from the proportion of voting rights:
Basis of holding half or less voting rights but still controlling the investee and holding more than half ofthe voting rights but not controlling the investee:
Although the Company holds less than 51% of the equity in Luzhou Laojiao Fruit Wine Industry Co.,Ltd. and Luzhou Laojiao Whitail Liquor Industry Co., Ltd., of the five members of the board ofdirectors of each of these companies, three members are appointed by the Company, whichrepresents a majority, and the Company exercises substantive control over these companies.Therefore, they are included in the scope of consolidation.
10.1.2. Important non-wholly-owned subsidiaries
Unit：CNY
| Name of subsidiary | Proportion of share holdings of non-Controlling shareholders | Gains and losses attributable to non-Controlling shareholders during current period | Dividends paid to non-controlling shareholders during current period | Closing balance of non-controlling shareholders interest |
| Luzhou Laojiao Boda Liquor Industry Marketing Co., Ltd. | 25.00% | 29,668,290.20 | 29,668,290.20 | 61,843,872.29 |
10.1.3. Major financial information of important non-wholly-owned subsidiaries
Unit：CNY
| Name of subsidiary | Closing Balance | Opening Balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Luzhou Laojiao Boda Liquor Industry Marketing Co., Ltd. | 471,136,426.86 | 471,136,426.86 | 223,760,937.71 | 223,760,937.71 | 569,377,544.62 | 569,377,544.62 | 322,002,055.47 | 322,002,055.47 | ||||
Unit：CNY
| Name of subsidiary | Current Period | Previous Period | ||||||
| Operating revenue | Net profit | Total comprehensive income | Operating cash flow | Operating revenue | Net profit | Total comprehensive income | Operating cash flow | |
| Luzhou | 1,540,208, | 118,673,1 | 118,673,1 | 1,022,042. | 1,012,725, | 118,739,2 | 118,739,2 | - |
| Laojiao Boda Liquor Industry Marketing Co., Ltd. | 491.81 | 60.82 | 60.82 | 22 | 794.94 | 79.29 | 79.29 | 54,348,215.68 |
10.1.4. Significant restrictions on using the assets and liquidating the liabilities of theCompanyN/A
10.1.5. Financial support or other supports provided to structural entities incorporated into thescope of consolidated financial statementsN/A
10.2. The transaction of the company with its owner's equity share changing butthe company still controls the subsidiary
10.2.1. Note to the owner's equity share changed in subsidiary
N/A
10.2.2. The transaction’s influence on the equity of non-controlling interests and the owner'sequity attributable to the company as the parentN/A
10.3. Interests in joint ventures and associates
10.3.1. Important joint ventures and associates
| Name of joint venture/associates | Major business location | Place of registration | Business nature | Shareholding proportion | Accounting Method | |
| Direct | Indirect | |||||
| Important joint ventures: none | ||||||
| Important associates: | ||||||
| Huaxi Securities Co., Ltd. | Chengdu, Sichuan | Chengdu, Sichuan | Securities | 10.39% | Equity method | |
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% ormore voting rights but does not have a significant impact:
The Company has the substantive decision-making power, so the Company still has significantinfluence on Huaxi Securities.
10.3.2. Major financial information of important associates
Unit：CNY
| Closing Balance/Amount in current period | Opening Balance/Amount in previous period | |
| Current assets | 93,869,804,524.81 | 80,257,215,749.71 |
| Non-current assets | 6,470,872,129.58 | 8,633,260,818.24 |
| Total assets | 100,340,676,654.39 | 88,890,476,567.95 |
| Current liabilities | 55,278,203,069.28 | 47,013,859,718.97 |
| Non-current liabilities | 21,499,772,518.55 | 19,074,441,893.35 |
| Total liabilities | 76,777,975,587.83 | 66,088,301,612.32 |
| Non-controlling shareholder interest | 16,018,731.95 | 17,277,841.64 |
| Shareholder interest attributable to parent company | 23,546,682,334.61 | 22,784,897,113.99 |
| Share of net assets calculated based on shareholding proportion | 2,447,340,296.67 | 2,368,163,636.40 |
| Adjusted | ||
| --Goodwill | ||
| --Unrealized profits of internal transactions | ||
| --Others | 167,466,735.90 | 167,466,735.90 |
| Book value of equity investments in associate companies | 2,614,807,032.57 | 2,535,630,372.30 |
| Fair value of equity investments in associate companies that have public quote | 2,267,226,806.64 | 2,117,169,677.44 |
| Operating revenue | 3,919,594,533.79 | 3,180,917,154.72 |
| Net profit | 726,724,518.60 | 424,951,566.18 |
| Net profit from discontinued operation | ||
| Other comprehensive income | 165,051,592.33 | 20,272,992.78 |
| Total comprehensive income | 893,035,220.62 | 445,224,558.96 |
| Dividends from associate companies this year | 13,641,557.20 | 8,184,934.32 |
10.3.3. Financial information summarized of unimportant joint ventures and associatecompanies
Unit：CNY
| Closing Balance/Amount in current period | Opening Balance/Amount in previous period | |
| Joint ventures: | ||
| Total following items calculated on the basis of shareholding proportion | ||
| Associate companies: | ||
| Total book value of investments | 186,445,285.36 | 172,624,461.20 |
| Total following items calculated on the basis of shareholding proportion | ||
| --Net profit | 2,120,824.16 | 2,436,674.07 |
| -- Total comprehensive income | 2,120,824.16 | 2,436,674.07 |
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation TechnologyInnovation Co., Ltd., Sichuan Development Liquor Investment Co., Ltd., CTS Luzhou Laojiao CulturalTourism Development Co., Ltd., Sichuan Tongniang Baijiu Industry Technology Research Institute Co.,Ltd. and Sichuan Tianfu Granary Liquor Industry Co., Ltd.
10.3.4. Notes to the significant restrictions on the ability of joint ventures or associatecompanies to transfer funds to the CompanyNone
10.3.5. The excess loss of joint ventures or associate companies
None
10.3.6. The unrecognized commitment related to investment to joint venturesNone
10.3.7. Contingent liabilities related to investment to joint ventures or associate companiesNone
11. Government grants
11.1. Government grants recognized at the end of the reporting period at theamount receivable
□Applicable ? N/A
Reasons for failing to receive government grants in the estimated amount at the estimated point intime
□Applicable ? N/A
11.2. Liability items involving government grants
?Applicable □ N/A
Unit：CNY
| Item | Opening Balance | Increase in current period | Non-operating income in current period | Other income in current period | Other changes | Closing Balance | Related to assets/ income |
| Deferred income | 27,772,083.74 | 71,041,000.00 | 12,140,356.91 | 86,672,726.83 | Related to assets | ||
| Total | 27,772,083.74 | 71,041,000.00 | 12,140,356.91 | 86,672,726.83 |
11.3. Government grants recognized as current profit or loss?Applicable □ N/A
Unit：CNY
| Item | Amount in current period | Amount in previous period |
| Other income | 41,225,885.28 | 51,950,003.11 |
| Non-operating revenue | ||
| Total | 41,225,885.28 | 51,950,003.11 |
12. Risks related to financial instruments
12.1. Various types of risks arising from financial instruments
The Company's primary financial instruments include monetary capital, trading financial assets,accounts receivable, receivables financing, receivables other than tax refundable, other equityinstruments, accounts payable, other payables, lease liabilities, some other current liabilities and loans.A detailed description of each financial instrument is set out in Note V and notes to the ConsolidatedFinancial Statement.Risks related to these financial instruments, and risk management policies the Company has adoptedto reduce these risks are described as follows. The Company management manages and monitors therisk exposure to ensure the above risks are controlled in a limited scope.The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable andpossible changes of risk variables on current profits/losses or shareholders' equity. As any risk variablerarely changes in isolation, and the correlation between variables will have a significant effect on thefinal impact amount of the change of a risk variable, the following content is based on the assumptionthat the change of each variable is independent.Risk management objective: The Company strikes an appropriate balance between risk and return, andstrives to minimize the negative impact of risk on the Company's operating performance and maximizethe interests of shareholders and other equity investors.Risk management policy: The Board of Directors shall be responsible for planning and establishing arisk management framework, formulating risk management policies and related guidelines, andsupervising the implementation of risk management measures. The Risk Management Committee shallcarry out risk management through close collaboration (including the identification, evaluation andavoidance of relevant risks) with other business units of the Company in accordance with the policiesapproved by the Board of Directors. The internal audit department shall conduct regular audits on riskmanagement controls and procedures and report the results to the Audit Committee.The Company has formulated risk management policies to identify and analyze the risks it faces,clarifying specific risks and covering many aspects such as credit risk, liquidity risk and market riskmanagement. On a regular basis, the Company evaluates the specific marketing environment andvarious changes in the Company's business operations to determine whether any risk managementpolicy and system should be updated. The Company diversifies the risks to financial instruments
through appropriately diversified investments and business portfolios, and reduces the risk ofconcentration in any single industry, specific geographic area or specific counterparty by formulatingappropriate risk management policies.
12.1.1. Credit risk
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations,causing financial losses to the other party. The Company only trades with recognized, reputable, andlarge third parties. In accordance with the Company's policy, the terms of sale with customers arebased on transactions of payment before delivery, with only a small amount of credit transactions, andcredit review for all customers who require credit to trade. In addition, the Company continuouslymonitors and controls the balance of the receivables to ensure that the Company does not facesignificant bad debt risks. In addition, the Company makes full provision for expected credit losses ateach balance sheet date based on the collection of receivables. Therefore, the Company'smanagement believes that the Company's credit risk has been greatly reduced.The Company's working capital is deposited in banks with high credit rating, so the credit risk of workingcapital is low.The Company's risk exposures are spread across multiple contract parties and customers in multiplegeographies, with customers in the commerce industry in addition to the alcohol distribution industry(the main industry). No systemic risk has been identified in the relevant industries. Therefore, theCompany has no significant credit concentration risk. As at December 31, 2024, the balance of the topfive customers of the Company's accounts receivable amounted to CNY 10,987,000, accounting for
94.70% of the balance of the Company's accounts receivable.
12.1.2. Liquidity risk
Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business developmentneeds or to repay debts due and other payment obligations. The Company has sufficient workingcapital. The liquidity risk is extremely small. The Company's objective is to use a variety of financinginstruments such as bank clearing, bank loans and issuing corporate bonds to maintain a balancebetween financing sustainability and flexibility. As at December 31, 2024, the Company has been ableto meet its own continuing operation requirements through the use of cash flow from operations.The analysis of the financial liabilities held by the Company based on the maturity period of theundiscounted remaining contractual obligations is as follows:
| Item | Closing Balance | |||||
| Book value | Contract amount not discounted | Within 1 year | 1-2 years | 2-3 years | Over 3 years | |
| Accounts payable | 1,844,497,206.78 | 1,844,497,206.78 | 1,844,497,206.78 | |||
| Other payable | 843,927,138.88 | 843,927,138.88 | 843,927,138.88 | |||
| Non-current liabilities | 3,276,628,616.74 | 3,276,628,616.74 | 3,276,628,616.74 | |||
| Item | Closing Balance | |||||
| Book value | Contract amount not discounted | Within 1 year | 1-2 years | 2-3 years | Over 3 years | |
| due within one year | ||||||
| Long-term loans | 6,279,900,000.00 | 6,279,900,000.00 | 4,040,500,000.00 | 2,239,400,000.00 | ||
| Lease liabilities | 24,528,519.13 | 26,472,170.43 | 10,401,588.63 | 5,679,181.80 | 10,391,400.00 | |
| Total | 12,269,481,481.53 | 12,271,425,132.83 | 5,965,052,962.40 | 4,050,901,588.63 | 2,245,079,181.80 | 10,391,400.00 |
12.1.3. Market risk
(1) Foreign exchange risk
The foreign exchange risk refers to the risk of loss due to exchange rate changes. Apart from the threesubsidiaries of the Company which make purchases and sales in USD and HKD, the other majorbusiness activities are denominated and settled in CNY. The Company closely monitors the impact ofexchange rate fluctuations on its foreign exchange risk, and actively tracks the scale of foreign currencytransactions, as well as foreign currency assets and liabilities, to minimize exposure to exchange raterisks. In order to hedge risks in the foreign exchange market, prevent adverse effects from significantfluctuations in exchange rates, control financial expenses and reduce exchange rate risks in overseasoperations, the Company's subsidiary, Luzhou Laojiao International Development (Hong Kong) Co.,Ltd., has engaged in forward foreign exchange contract transactions. As at December 31, 2024, theCompany's assets and liabilities are mainly in CNY balance. At present, the Company's managementconsiders the impact of changes in foreign exchange risk on the Company's financial statements to beless.
(2) Rate risk
The Company's interest rate risk mainly arises from the long-term loans from banks. Financial liabilitiesbased on the floating interest rate will cause the cash flow interest rate risk to the Company, andfinancial liabilities based on the fixed interest rate the fair value interest rate risk. The Company willdetermine the corresponding proportion between the contracts with fixed interest rate and those withfloating interest rate in combination with current market condition.
(3) Other price risks
Other price risk refers to the risk of fluctuation caused by market price changes other than foreignexchange risk and interest rate risk, whether these changes are caused by factors related to a singlefinancial instrument or its issuer or all similar financial instruments traded in the market. Other pricerisks faced by the Company mainly come from held-for-trading financial assets and investments in otherequity instruments measured at fair value.
12.2. Financial assets
12.2.1. Classification of transfer methods
?Applicable □ N/A
Unit：CNY
| Transfer method | Nature of transferred financial assets | Amount of transferred financial | Derecognized or not | Basis for derecognition |
| assets | ||||
| Endorsement of notes | Outstanding bank acceptance bills in accounts receivable financing | 307,684,810.36 | Yes | Almost all its risks and rewards have been transferred |
| Discount of notes | Outstanding bank acceptance bills in accounts receivable financing | 7,186,680,891.00 | Yes | Almost all its risks and rewards have been transferred |
| Total | 7,494,365,701.36 |
12.2.2. Financial assets derecognized due to transfer
?Applicable □ N/A
Unit：CNY
| Item | Method of financial assets transfer | Amount of derecognized financial assets | Gains or losses related to derecognition |
| Outstanding bank acceptance bills in accounts receivable financing | Endorsement of notes | 307,684,810.36 | |
| Outstanding bank acceptance bills in accounts receivable financing | Discount of notes | 7,186,680,891.00 | -26,199,158.05 |
| Total | 7,494,365,701.36 | -26,199,158.05 |
12.2.3. Continued involvement in the transfer of assets financial assets
□Applicable ? N/A
Other statement
13. Fair value disclosure
13.1. Closing fair value of assets and liabilities measured at fair value
Unit：CNY
| Item | Closing fair value | |||
| Level 1 | Level 2 | Level 3 | Total | |
| 1. Continuous measurement at fair value | -- | -- | -- | -- |
| 1.1 Held-for-trading financial assets | 1,694,282,295.97 | 1,694,282,295.97 | ||
| 1.1.1 Financial assets measured at fair value with their changes included into current profits/losses | 1,694,282,295.97 | 1,694,282,295.97 | ||
| 1.1.1.4 Wealth management products | 1,694,282,295.97 | 1,694,282,295.97 | ||
| 1.3 Investments in other equity instruments | 373,936,795.90 | 33,257,910.65 | 407,194,706.55 | |
| 1.6 Accounts receivable financing | 1,801,947,455.78 | 1,801,947,455.78 | ||
| Total assets continuously measured at fair value | 373,936,795.90 | 3,529,487,662.40 | 3,903,424,458.30 | |
| 2. Discontinuous measurement at fair value | -- | -- | -- | -- |
13.2. Determination basis of the market value of items measured continuously anddiscontinuously within Level 1 of the fair value hierarchyThe listed companies in mainland China determine the fair value of other equity instrument investmentaccording to the closing price on the last trading day of Shenzhen Stock Exchange or Shanghai StockExchange at the period-end. The companies listed in Hong Kong determine the fair value of otherequity instrument investment according to the closing price of Hong Kong Dollar on the last trading dayof Hong Kong Stock Exchange at the period-end and the median price of CNY exchange rate disclosedon the same day by China Foreign Exchange Trade System.
13.3. Valuation technique adopted and nature and amount determination ofimportant parameters for continuously and discontinuously within Level 2 of the fairvalue hierarchyNone
13.4. Valuation technique adopted and nature and amount determination ofimportant parameters for continuously and discontinuously within Level 3 of the fairvalue hierarchy
Trading financial assets are wealth management products of the collective asset management plan andare measured at fair value based on the amount calculated on the basis of the net unit value of theunderlying assets as published on the official website of the asset manager.
Accounts receivable financing: As the timing and price of bills discounted may not be reliably estimateddue to the short maturity of the bills all being less than one year and the endorsement of the negotiablebills being valued at book value, the Company measures the bills receivable at their book value as areasonable estimate of fair value.
Other equity instrument investment: Due to no significant changes in business environment, businesscondition and financial situation of invested companies, the Company shall measure the fair valueaccording to the lower one between investment cost and the share of net assets enjoyed by investedcompanies on the base date as the reasonable estimation.
13.5. Continuous fair value measurement items at level 3, adjustment between thebeginning carrying value and the ending carrying value and sensitivity analysis onunobservable parametersNone
13.6. Explain the reason for conversion and the policy governing when theconversion happens if conversion happens among continuous fair valuemeasurement items at different levelNone
13.7. Changes in valuation techniques in the reporting period and reasons for thechangesNone
13.8. Fair value of financial assets and liabilities not measured at fair value
None
14. Related parties and related party transactions
14.1. The parent company of the Company
| Parent company | Registration place | Business nature | Registered capital | Shareholding proportion by the parent company | Voting rights proportion by the parent company |
| Luzhou Laojiao Group Co., Ltd. | Luzhou, Sichuan | Investment and asset management | 2,798,818,800 | 25.89% | 50.83% |
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rightsproportion by the controlling shareholder is that: ①On May 27, 2021, Laojiao Group and XingLuInvestment Group, the second biggest shareholder, renewed the concerted action agreement which isvalid as of June 1, 2021 and ends on May 31, 2024. The agreement: when the parties in deal with theCompany’s business development and make decisions by shareholders meeting and board ofdirectors according to the company law and other relevant laws and regulations and the articles ofassociation, the parties should adopt the consistent actions. During the effective period of thisagreement, before any party submits proposals involving the major issues of the Company's businessdevelopment to the shareholders meeting or exercise the voting rights at the shareholders meetingand the board of directors, the internal coordination for relevant proposals and voting events shall beconducted by persons acting in concert. If there are different opinions, it will be subject to LaojiaoGroup’s opinion. Before the expiration date of the above-mentioned agreement this year, LaojiaoGroup and XingLu Investment Group renewed the concerted action agreement again on May 23,2024. The validity period of this agreement is from June 1, 2024 to May 31, 2027, and the relevant
contents are consistent with the aforementioned agreement. ②From December 2023 to June 2024,Laojiao Group increased its holdings of the Company’s shares by 1,140,200 shares through itswholly-owned subsidiary, Sichuan Golden Rudder Investment Co., Ltd., via centralized biddingtransactions. For details please see Note 3. Company Profile.The nature of the controlling shareholder: Limited liability company (state-owned); Registration place:
No. 9, Nanguang Road, Longmatan District, Luzhou City, China; Business Scope: General project:
Social economy consulting services; business management consulting; financial consulting; businessheadquarters management; import and export agency; trade brokerage; crops planting services; treesplanting operation; elder care services; tourism development project planning and consulting;technical agency services; engineering and technological research and experimental development;display device manufacturing; supply chain management services; technical services, technicaldevelopment, technical consulting, technical communication, technical transfer, and technicalpromotion; domestic freight transport agency; equity fund-invested asset management services,passenger ticket agent and business agency service. It shall also include licensed projects (businessactivities can be carried out legally and independently with business license in addition to projectsthat must be approved by law): Agency bookkeeping; career intermediary activities; food production;food sales; medical services. (business activities that require approval in accordance with laws canbe carried out upon approval of relevant authorities, and the specific business projects shall besubject to the approval document or license of relevant departments)
The final control party of the Company is SASAC of Luzhou.
14.2. Subsidiaries of the Company
For details please see Note 10.1. Interests in subsidiaries.
14.3. Joint ventures and associates of the Company
For details please see Note 10.3. Interests in joint ventures and associates.Information on other joint ventures or associates that have related party transactions with the Companyin the current period or in the previous period and result in balance:
There are no other joint ventures or associates that have related party transactions with the Companyin the current period or in the previous period and result in balance.
14.4. Other related party of the Company
| Name of Other Related Party | Relationship with the Company |
| Luzhou XingLu Investment Group Co., Ltd. | The second largest shareholder |
| Luzhou Airport (Group) Co., Ltd. | Subsidiary of the second largest shareholder |
| Luzhou XingLu Water (Group) Co., Ltd. | Subsidiary of the second largest shareholder |
| Luzhou Public Transport Group Co., Ltd. | Subsidiary of the second largest shareholder |
| Luzhou XingLu Property Management Co., Ltd. | Subsidiary of the second largest shareholder |
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | Associate |
| Sichuan Tianfu Granary Liquor Industry Co., Ltd. | Associate |
| Sichuan Development Liquor Investment Co., Ltd. | Associate |
| Luzhou Sanrenxuan Liquor Industry Co., Ltd. | Associate of the controlling shareholder |
| Sichuan Jianxing Park Operation Management Co., Ltd. | Associate of the controlling shareholder |
| Luzhou COSCO Shipping Logistics Co., Ltd. | Associate of the controlling shareholder |
| Sichuan Landstar Supply Chain Technology Co., Ltd. | Associate of the controlling shareholder |
| Shijiazhuang Chengtong Lianzhong Storage and Transportation Co., Ltd. | Associate of the controlling shareholder |
| Sichuan Sidu Chishui Red Culture Development Co., Ltd. | Associate of the controlling shareholder |
| Sichuan Geyuan Equity Investment Fund Management Co., Ltd. | Associate of the controlling shareholder |
| Luzhou Bank Co., Ltd. | Associate of the controlling shareholder |
| Luzhou Rural Commercial Bank Co., Ltd. | Associate of the controlling shareholder |
| Sichuan Lianzhong Supply Chain Service Co., Ltd. | Other subsidiary of the controlling shareholder |
| Sichuan Kangrun Group Construction and Installation Engineering Co., Ltd. | Other subsidiary of the controlling shareholder |
| Shenzhen Mingxincheng Lighting Technology Co., Ltd. | Other subsidiary of the controlling shareholder |
| Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd. | Other subsidiary of the controlling shareholder |
| APTCC | Other subsidiary of the controlling shareholder |
| Luzhou Laojiao Innovation Industry Holdings Co., Ltd. | Other subsidiary of the controlling shareholder |
| Luzhou Jiachuang Liquor Supply Chain Management Co., Ltd. | Other subsidiary of the controlling shareholder |
| Luzhou Laojiao Property Service Co., Ltd. | Other subsidiary of the controlling shareholder |
| SC Global Wine Corporation Limited | Other related party |
| Sichuan Not Single Cultural and Creative Development Co., Ltd. | Other related party |
| Sichuan Brewing Art E-business Co., Ltd. | Minority shareholder of the subsidiary Custom Liquor Company |
| Luzhou Yucheng Trading Co., Ltd. | Minority shareholder of the subsidiary Custom Liquor Company |
| Luzhou 2013 Liquor Marketing Co., Ltd. | Minority shareholder of the subsidiary Custom Liquor Company |
| Sichuan Meihe Winery Industry Co., Ltd. | Minority shareholder of the subsidiary Fruit Wine Industry |
14.5. Related transactions
14.5.1. Related transactions of purchase and sales of goods / rendering and receipt ofservicesTable of purchase of goods / receipt of services
Unit：CNY
| Name of Related Party | Transaction | Amount in current period | Approved trading amount | Whether over approved trading amount | Amount in previous period |
| Receipt of services: | |||||
| Laojiao Group and its subsidiaries, joint ventures and associates | Training, accommodation, warehousing, loading and unloading, transportation services and property costs, etc. | 94,637,427.08 | 49,434,313.56 | ||
| Luzhou XingLu Investment Group Co., Ltd. | Property service, advertising service, etc. | 29,091,328.49 | 28,275,528.70 |
| and its subsidiaries | |||||
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | Conference fees, travel service fee, etc. | 10,275,324.41 | 7,840,147.72 | ||
| Subtotal of receipt of services | 134,004,079.98 | 85,549,989.98 | |||
| Purchase of goods: | |||||
| Laojiao Group and its other subsidiaries, joint ventures and associates | Raw materials, water, power, etc. | 322,867,238.48 | 193,980,923.60 | ||
| Luzhou XingLu Investment Group Co., Ltd. and its subsidiaries | Gas, water | 14,699,091.83 | 14,191,020.92 | ||
| Sichuan Meihe Winery Industry Co.,Ltd. | Other wine | 20,160.00 | |||
| Subtotal of purchase of goods | 337,566,330.31 | 208,192,104.52 | |||
| Total | 471,570,410.29 | 293,742,094.50 |
Table of sales of goods and rendering of service
Unit：CNY
| Name of Related Party | Transaction | Amount in current period | Amount in previous period |
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | Liquor, etc. | 102,225,092.84 | 80,916,407.69 |
| Laojiao Group and its subsidiaries | Liquor, etc. | 36,151,086.06 | 41,823,418.45 |
| Luzhou Sanrenxuan Liquor Industry Co., Ltd. | Liquor | 37,943,774.39 | 28,674,936.80 |
| Sichuan Tianfu Granary Liquor Industry Co., Ltd. | Liquor | 9,273,012.30 | |
| SC Global Wine Corporation Limited | Liquor | 697,150.36 | |
| Sichuan Jianxing Park Operation Management Co., Ltd. | Liquor | 76,496.28 | |
| Sichuan Sidu Chishui Red Culture Development Co., Ltd. | Liquor | 7,764.66 | |
| Sichuan Not Single Cultural and Creative Development Co., Ltd. | Liquor | 6,326.76 | |
| Sichuan Geyuan Equity Investment Fund Management Co., Ltd. | Liquor | 1,150.32 |
| Sichuan Brewing Art E-business Co., Ltd. | Liquor | 72,355,864.08 | |
| Luzhou Yucheng Trading Co., Ltd. | Liquor | 3,787,740.88 | |
| Luzhou 2013 Liquor Marketing Co., Ltd. | Liquor | 580.00 | |
| Total | 186,381,853.97 | 227,558,947.90 |
14.5.2. Related party leasing
The Company as lessor:
Unit：CNY
| Name of lessee | Type of leased asset | Leasing income recognized during current period | Leasing income recognized during previous period |
| Laojiao Group and its subsidiaries | House and equipment lease | 3,347,760.00 | 2,140,080.00 |
The Company as lessee:
Unit：CNY
| Name of lessor | Type of assets leased | Rental expenses of short-term lease simplified treated and low-value asset lease (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Paid rent | Income expense of lease liabilities undertaken | Increased use right assets | |||||
| Amount in current period | Amount in previous period | Amount in current period | Amount in previous period | Amount in current period | Amount in previous period | Amount in current period | Amount in previous period | Amount in current period | Amount in previous period | ||
| Laojiao Group and its subsidiaries | House lease | 3,364,818.53 | 2,480,516.20 | 3,364,818.53 | 2,480,516.20 | ||||||
14.5.3. Key management compensation
Unit：CNY
| Item | Amount in current period | Amount in previous period |
| Key management compensation | 13,449,854.68 | 14,678,785.22 |
14.5.4. Other related transactions
The Company has daily fund deposit business with its related parties, Luzhou Bank Co., Ltd. andLuzhou Rural Commercial Bank Co., Ltd. As of December 31, 2024, the bank deposit balances of theCompany in Luzhou Bank Co., Ltd. and Luzhou Rural Commercial Bank Co., Ltd. were CNY2,485,514,200 and CNY 600,010,000 respectively. In 2024, the interest income from bank deposits inLuzhou Bank Co., Ltd. and Luzhou Rural Commercial Bank Co., Ltd. were CNY82,059,900 and CNY21,000,500 respectively. This year and last year, the Company did not conduct loan business with theabove two banks.
14.6. Receivables and payables of related parties
14.6.1. Receivables
Unit：CNY
| Item | Related party | Closing Balance | Opening Balance | ||
| Book value | Provision for bad debt | Book value | Provision for bad debt | ||
| Prepayment | Luzhou Laojiao Group Co., Ltd. | 9,180,164.89 | 3,522,751.07 | ||
| Prepayment | Luzhou XingLu Water (Group) Co., Ltd. | 691,263.37 | 705,446.15 | ||
| Prepayment | Luzhou Public Transport Group Co., Ltd. | 161,232.86 | 126,001.64 | ||
| Prepayment | CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 518,886.00 | |||
| Prepayment | Sichuan Meihe Winery Industry Co.,Ltd. | 2,961,479.50 | 2,961,479.50 | ||
| Other receivables | Luzhou Airport (Group) Co., Ltd. | 10,000.00 | |||
14.6.2. Payables
Unit：CNY
| Item | Related party | Closing Balance | Opening Balance |
| Accounts payable | Sichuan Lianzhong Supply Chain Service Co., Ltd. | 3,302,166.70 | 10,583,919.37 |
| Accounts payable | Sichuan Kangrun Group Construction and Installation Engineering Co., Ltd. | 3,738.20 | |
| Accounts payable | Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd. | 109,200.00 | |
| Accounts payable | Luzhou Xinglu Property Management Co., Ltd. | 342,099.50 | |
| Contractual liabilities (tax inclusive) | CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 30,406,394.92 | 13,933,613.22 |
| Contractual liabilities (tax inclusive) | APTCC | 709,197.66 | |
| Contractual liabilities (tax inclusive) | Luzhou Sanrenxuan Liquor Industry Co., Ltd. | 111,325.61 | 2,553,000.00 |
| Contractual liabilities (tax inclusive) | Sichuan Jianxing Park Operation Management Co., Ltd. | 1,374,481.80 | |
| Contractual liabilities (tax inclusive) | Sichuan Lianzhong Supply Chain Service Co., Ltd. | 110,091.79 | 2,508.09 |
| Contractual liabilities (tax inclusive) | Luzhou Laojiao Innovation Industry Holdings Co., Ltd. | 6,587,508.00 |
| Contractual liabilities (tax inclusive) | Shijiazhuang Chengtong Lianzhong Storage and Transportation Co., Ltd. | 768.78 | |
| Contractual liabilities (tax inclusive) | Luzhou Jiachuang Liquor Supply Chain Management Co., Ltd. | 2,135.99 | |
| Contractual liabilities (tax inclusive) | Sichuan Tianfu Granary Liquor Industry Co., Ltd. | 6,726,987.70 | |
| Other payables | Luzhou Xinglu Property Management Co., Ltd. | 154,920.20 | 154,920.20 |
| Other payables | Sichuan Kangrun Group Construction and Installation Engineering Co., Ltd. | 70,000.00 | |
| Other payables | APTCC | 150,000.00 | |
| Other payables | Luzhou Laojiao Group Co., Ltd. | 5,000.00 | |
| Other payables | CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 1,355,000.00 | 1,050,000.00 |
| Other payables | Sichuan Jianxing Park Operation Management Co., Ltd. | 100,000.00 | |
| Other payables | Luzhou Laojiao Innovation Industry Holdings Co., Ltd. | 206,000.00 | |
| Other payables | Sichuan Development Liquor Investment Co., Ltd. | 4,494,000.00 | 4,494,000.00 |
| Other payables | Sichuan Lianzhong Supply Chain Service Co., Ltd. | 47,074,343.00 | 37,911,448.00 |
| Other payables | Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payables | Luzhou Laojiao Property Service Co., Ltd. | 30,020.58 | |
| Other payables | Luzhou Sanrenxuan Liquor Industry Co., Ltd. | 300,000.00 | 150,000.00 |
| Other payables | Sichuan Tianfu Granary Liquor Industry Co., Ltd. | 100,000.00 |
14.7. Commitments of the related parties
None
15. Stock payment
15.1. The overall situation of share-based payments
? Applicable □ N/A
Unit：CNY
| Type of granting object | Granted in the Current Period | Exercised in the Current Period | Unlocked in the Current Period | Invalid in the Current Period | ||||
| Number | Amount | Number | Amount | Number | Amount | Number | Amount | |
| 2,869,174.00 | 430,406,337.82 | 36,266.00 | 5,361,017.14 | |||||
| Total | 2,869,174.00 | 430,406,337.82 | 36,266.00 | 5,361,017.14 |
Outstanding stock options or other equity instruments at the end of the reporting period
□Applicable ? N/A
Other statements:
Note 1: At the 12th Meeting of the 10th Board of Directors of the Company held on December 29, 2021,the Proposal on the Grant of Restricted Shares to Awardees was reviewed and approved and it wasagreed to grant 6,928,600 restricted shares to 441 awardees for the first time at CNY 92.71 per sharewith December 29, 2021 as the grant date.According to the incentive plan, its validity period lasts from the date of registration for the grant ofrestricted shares until all restricted shares are lifted from restricted sales or repurchased and retired, fora maximum of 60 months. The lifting restriction period of the restricted shares shall be 24 months fromthe date of completion of registration. The restricted shares will be lifted from restricted sales in threebatches after 24 months from the date of completion of registration, in the proportion of 40.00%,
30.00%, 30.00%, respectively, for each lifting.
In February 2024, the Company announced that 435 awardees met the lifting conditions in the firstlifting restriction period under the 2021 Restricted Share Incentive Plan of the Company. The number ofrestricted shares that can be lifted from restricted sales was 2,734,640, accounting for 0.19% of thecurrent total share capital of the Company.In September 2024, the Company announced that 45 awardees met the lifting conditions in the firstlifting restriction period under the 2021 Restricted Share Incentive Plan Reserved Portion of theCompany. The number of restricted shares that can be lifted from restricted sales was 134,534,accounting for 0.01% of the current total share capital of the Company.
Note 2: In 2024, as five awardees no longer met the incentive conditions, the Company repurchasedand canceled a total of 36,266 restricted shares that had been granted but not yet released fromrestrictions for these incentive recipients. As at the end of 2024, the Company had completed therepurchase and cancellation of the above-mentioned shares.
15.2. Equity-settled share-based payments
? Applicable □ N/A
Unit：CNY
| Method of determining the fair value of equity instruments on the grant date | The closing price of restricted stocks on the grant date deducted the grant price thereof |
| Important parameters of fair value of equity instruments on the grant date | The closing price of restricted stocks on the grant date |
| Basis to determine number of equity instrument that can be exercised | The Company's management considered factors such as changes in the number of eligible employees for the latest exercisable options and the level of performance achievement to make the best estimate. |
| Reason for remarkable difference between the estimate of the current period and that of previous period | N/A |
| Total amount of equity-settled share-based payments included into capital reserves | 1,642,758,677.41 |
| Total costs of recognizing equity-settled share-based payments in the current period | 185,352,031.51 |
15.3. Cash-settled share-based payments
□ Applicable ? N/A
15.4. Share-based payment expenses in the current period? Applicable □ N/A
Unit：CNY
| Type of granting object | Expenses for equity-settled share-based payments | Expenses for cash-settled share-based payments |
| Production staff | 23,192,308.80 | |
| Sales staff | 48,618,883.85 | |
| Administrative staff | 100,696,953.42 | |
| R&D staff | 12,843,885.44 | |
| Total | 185,352,031.51 |
15.5. Modification and termination of share-based paymentsNone
16. Commitments and contingencies
16.1. Commitments
Significant commitments at the balance sheet dateNone
16.2. Contingencies
16.2.1. Significant contingencies at the balance sheet date
1. Fund involving contract disputes
On October 15, 2014 and January 10, 2015, the Company disclosed three saving deposits involvingcontract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch, Industrial andCommercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amountof CNY 500 million. The public security organization has investigated, and the investigation of relatedcases and the preservation of assets are under way. The Company has initiated a civil procedure torecover the loss from the responsible unit. As of the period-end, the Company has recovered theabove-mentioned saving deposits involving contract disputes with CNY 375,900,700.
2. Dispute over the Specialized Subcontract for Construction Works
China Second Metallurgy Group Co., Ltd. (hereinafter referred to as "China Second Metallurgy") wasthe EPC contractor for the technical renovation project of Luzhou Laojiao Intelligent Packaging Center.On October 11, 2021, Longpan Construction Engineering Group Co., Ltd. (hereinafter referred to as"Longpan Construction") entered into a Specialized Subcontract for Construction Works with ChinaSecond Metallurgy, under which China Second Metallurgy subcontracted the slope support works ofthe project to Longpan Construction. Due to a dispute over project payment settlement betweenChina Second Metallurgy and Longpan Construction, Longpan Construction filed a lawsuit againstChina Second Metallurgy with the Jiangyang District People’s Court of Luzhou, naming LuzhouLaojiao Brewing Co., Ltd., the project owner, as a co-defendant. On November 4, 2024, LongpanConstruction applied to the Jiangyang District People’s Court of Luzhou for the preservation oflitigation-related assets. The court accordingly froze bank deposits of CNY 11,000,000 of the BrewingCompany.In another dispute over a construction subcontract involving natural persons Guan Jian and ChengYun as plaintiffs, and China Construction First Group Corporation Limited and Sichuan ZhonghuanYineng Environmental Engineering Co., Ltd. as defendants, with Dujiangyan Qihao Seedling PlantingCo., Ltd. and Sichuan Jumao Labor Service Co., Ltd. as third parties, Luzhou Laojiao Brewing Co.,Ltd. and the Company were also named as co-defendants. The plaintiffs also applied to theJiangyang District People’s Court of Luzhou for the preservation of litigation-related assets. The courtaccordingly froze bank deposits of CNY 6,990,003.44 of the Brewing Company.
As of December 31, 2024, the Group was also involved in several lawsuits arising from dailyoperations with relatively small amounts in dispute. However, the Group believes that any liabilitiesarising from these minor lawsuits will not have a material adverse impact on the Group’s financialposition or operating results.
Except for the above matters, the Company has no other significant contingencies that need to bedisclosed as of the end of the reporting year.
16.2.2. Explanation shall be given even if there is no significant contingency for the Companyto discloseThere was no significant contingency in the Company to disclose.
17. Post balance sheet event
17.1. Significant non-adjustment matters
None
17.2. Profit distribution
| Dividends to be distributed for every 10 existing shares held (CNY) | 45.92 |
| Profit distribution plan | Upon the resolution of the Board of Directors, the 2024 profit distribution plan was approved: Based on the current 1,471,951,503 shares, a cash dividend of CNY |
45.92 (tax included) will be distributed for every 10
existing shares held, representing a total cash dividendamount of CNY 6,759,201,301.78 (tax included). Whereany change occurs to the Company's total share capitalbefore the implementation of the distribution plan,relevant adjustments shall be made with the same totaldistribution amount.
Note: 1 The Company has implemented the interim dividend plan for 2024 on January 24, 2025,distributing a cash of CNY 13.58 (tax included) for every 10 existing shares held to all shareholders,totaling CNY 1,998,910,141.07 (tax included) distributed. If the above-mentioned plan is reviewedand approved by the shareholders’ meeting, the total cumulative cash dividend of the Company in2024 will be CNY 8,758,111,442.85 (tax included), accounting for approximately 65.00% of the netprofit attributable to shareholders of the listed company in 2024.
17.3. Sales return
There are no important sales returning after balance sheet date.
17.4. Statement for other post balance sheet events
1. The achievement of lifting the restriction conditions in the first restriction period under the 2021Restricted Share Incentive Plan Reserved PortionAt the 8th meeting of the 11th Board of Directors held on January 21, 2025, the Proposal on theAchievement of Lifting the Restriction Conditions in the First Restriction Period under the 2021Restricted Share Incentive Plan Reserved Portion was reviewed and approved. In accordance withthe relevant provisions of the 2021 Restricted Share Incentive Plan (Draft) and the PerformanceAssessment Measures for the 2021 Restricted Share Incentive Pllan, the restriction conditions in thefirst restriction period under the 2021 Restricted Share Incentive Plan Reserved Portion have beenachieved. The Company agreed to proceed with the restriction lifting procedures for 17 incentiverecipients who met the conditions. Restricted shares eligible for release from restricted saleamounted to 37,069 shares, representing 0.0025% of the current total share capital of the Company.This proposal was considered and approved by the Remuneration and Appraisal Committee of theBoard of Directors of the Company. The date of listing for the restricted shares eligible for releasefrom restricted sale was February 17, 2025.
2. The achievement of lifting the restriction conditions in the second restriction period under the 2021Restricted Share Incentive PlanAt the 8th meeting of the 11th Board of Directors held on January 21, 2025, the Proposal on theAchievement of Lifting the Restriction Conditions in the Second Restriction Period under the 2021Restricted Share Incentive Plan was reviewed and approved. In accordance with the relevantprovisions of the 2021 Restricted Share Incentive Plan (Draft) and the Performance AssessmentMeasures for the 2021 Restricted Share Incentive Plan, the restriction conditions in the secondrestriction period under the 2021 Restricted Share Incentive Plan have been achieved. The Companyagreed to proceed with the restriction lifting procedures for 434 awardees who met the conditions.Restricted shares eligible for release from restricted sale amounted to 2,022,530 shares, representing
0.1374% of the current total share capital of the Company. This proposal was considered and
approved by the Remuneration and Appraisal Committee of the Board of Directors of the Company.The date of listing for the restricted shares eligible for release from restricted sale was February 24,2025.
3. Except for the above matters, the Company has no other post balance sheet events.
18. Other important information
18.1. Annuity plan
The Company carried out the enterprise annuity payment work normally during the reporting period.The enterprise annuity funds are paid by both the Company and employees. The Company'scontribution shall not exceed 8% of the Company's total salary in the previous year as stipulated bythe state, and the individual contribution shall be withheld by the Company according to 1% of totalsalary of the employee in the previous year.
18.2. Segment information
18.2.1 Recognition basis and accounting policies of reportable segmentExcept for the business on baijiu sales, the Company does not operate other businesses that have asignificant impact on operation results. In addition, the Company operates mainly from China andmain assets also located in China, so the Company does not need to disclose segment data.
18.3. Other significant events that can affect investors’ decision
18.3.1 Saving deposits involving contract disputes
As stated in Note 16.2, three saving deposits involved contract disputes in Agricultural Bank of ChinaChangsha Yingxin Sub-branch, Industrial and Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amount of CNY 500 million. At present, the investigation ofrelated cases and the preservation of assets have been under way. The Company has initiated a civilprocedure to recover the loss from the responsible unit.
Taking into account the current amount of assets preserved by the public security authorities and thecontents of the professional legal opinion issued by Beijing Weiheng (Chengdu) Law Firm on January 6,2025 that “given that since the issuance of the previous legal opinion, a few recovery has beenachieved through the criminal and civil execution, totalling CNY 376 million. At the same time, it issuggested that the total amount of bad debt provision for the three aforementioned places remain CNY120 million”, the Company has made a bad debt provision of CNY 120 million for savings depositinvolved in contractual disputes as of the end of the period, and the amount of the bad debt provisionmay be adjusted in the future based on the litigation process and recovery.
18.3.2. Deliberating and approving the Proposal on the De-registration of Luzhou LaojiaoWhitail Liquor Industry Co., Ltd.On June 4, 2024, at the 40th meeting of the 10th Board of Directors, the Proposal on the De-registration of Luzhou Laojiao Whitail Liquor Industry Co., Ltd. was deliberated and approved. LuzhouLaojiao Whitail Liquor Industry Co., Ltd. ("Whitail Company") is a subsidiary of Luzhou LaojiaoElectronic Commerce Co., Ltd., a subsidiary in which the Company holds 90% of the shares, and ismainly responsible for R&D and sales of innovative products such as whitail professional base liquor,twelve zodiac ready-to-drink liquor, baijiu aged in oak barrel, and Panda Xiaojiu, etc. According to theCompany's strategic plan for the innovative baijiu business, the Company decided to transfer therelevant business of Whitail Company to Luzhou Laojiao New Liquor Industry Co., Ltd. Therefore, theWhitail Company was de-registered.
19. Notes to the main Items of the financial statements of parentcompany (all currency unit is CNY, except other statements)
19.1. Accounts receivable
19.1.1. Disclosure by aging
Unit：CNY
| Aging | Closing book balance | Opening book balance |
| Within 1 year (including 1 year) | 15,421.83 | |
| Total | 15,421.83 | 0.00 |
19.1.2. Disclosure by withdrawal methods for bad debts
Unit：CNY
| Type | Closing Balance | Opening Balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Including: | ||||||||||
| Accounts receivable tested for impairment by the portfolio | 15,421.83 | 100.00% | 720.00 | 4.67% | 14,701.83 | |||||
| Including: | ||||||||||
| Accounts receivable tested for impairm | 15,421.83 | 100.00% | 720.00 | 4.67% | 14,701.83 | |||||
| ent on the portfolio with characteristics of credit risk | ||||||||||
| Total | 15,421.83 | 100.00% | 720.00 | 4.67% | 14,701.83 | 0.00 |
Provision for bad debt by the portfolio: CNY 720.00
Unit：CNY
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Proportion | |
| Risk portfolio | 14,400.03 | 720.00 | 5.00% |
| Including: within 1 year | 14,400.03 | 720.00 | 5.00% |
| Other portfolio | 1,021.80 | ||
| Total | 15,421.83 | 720.00 | |
If adopting the general mode of expected credit loss to withdraw provision for bad debt of accountsreceivable
□Applicable ? N/A
19.1.3. Provision and recovery for bad and doubtful debt in the current periodAllowance of provision for bad debt:
Unit：CNY
| Type | Opening Balance | Changes in current period | Closing Balance | |||
| Allowance | Reversal or recovery | Write-off | Other | |||
| Accounts receivable with a single provision for expected credit loss | ||||||
| Accounts receivable with expected credit loss by portfolio | 720.00 | 720.00 | ||||
| Total | 720.00 | 720.00 | ||||
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
There is no significant provision in accounts receivable reversed or recovered in the reporting period.
19.1.4. Accounts receivable written-off in the current period
There is no accounts receivable written-off in the current period.
19.1.5. Top five entities with the largest balances of accounts receivable and contract assets
Unit：CNY
| Company name | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion to total closing balance of accounts receivable and contract assets | Closing balance of provision for bad debt provision of accounts receivable and impairment allowance of contract assets |
| Wang Huiying | 14,400.03 | 14,400.03 | 93.37% | 720.00 | |
| Luzhou Pinchuang Technology Co., Ltd. | 1,021.80 | 1,021.80 | 6.63% | ||
| Total | 15,421.83 | 15,421.83 | 100.00% | 720.00 |
19.2. Other receivables
Unit：CNY
| Item | Closing Balance | Opening Balance |
| Other receivables | 14,619,833,493.32 | 14,844,650,322.98 |
| Total | 14,619,833,493.32 | 14,844,650,322.98 |
19.2.1. Other receivables
19.2.1.1. Other receivables disclosed by nature
Unit：CNY
| Nature | Closing book balance | Opening book balance |
| Internal intercourse funds | 14,612,828,324.02 | 14,828,601,798.89 |
| Intercourse funds and others | 3,139,064.91 | 9,004,523.78 |
| Saving deposits involving contract disputes1 | 124,099,253.17 | 127,564,873.50 |
| Total | 14,740,066,642.10 | 14,965,171,196.17 |
Note: 1 The saving deposits involving contract disputes are three deposits amounting to CNY500,000,000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and NanyangZhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement incontract disputes and have thus been transferred into “other receivables”. In 2024, CNY 3,465,620.33of the saving deposits involving contract disputes was recovered. The closing balance of this accountas at the date of the statement was CNY 124,099,253.17.
19.2.1.2. Disclosure by aging
Unit：CNY
| Aging | Closing book balance | Opening book balance |
| Within 1 year (including 1 year) | 14,615,795,158.37 | 14,837,508,542.67 |
| 1-2 years | 92,550.56 | |
| 2-3 years | 13,480.00 | |
| Over 3 years | 124,178,933.171 | 127,649,173.50 |
| 3-4 years | 6,880.00 | 11,500.00 |
| 4-5 years | 22,800.00 | |
| Over 5 years | 124,172,053.17 | 127,614,873.50 |
| Total | 14,740,066,642.10 | 14,965,171,196.17 |
Note: 1 Other receivables with significant single amount exceeding three years in age relates tosavings deposit of CNY 124,099,253.17, which are yet to be recovered due to contractual disputes.
19.2.1.3. Disclosure by withdrawal methods for bad debts
Unit：CNY
| Type | Closing balance | Opening Balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Provision for bad debt by individual item | 124,099,253.17 | 0.84% | 120,000,000.00 | 96.70% | 4,099,253.17 | 127,564,873.50 | 0.85% | 120,000,000.00 | 94.07% | 7,564,873.50 |
| Including: | ||||||||||
| Other receivables that are individually material and for which a separate provision for bad debts has been made | 124,099,253.17 | 0.84% | 120,000,000.00 | 96.70% | 4,099,253.17 | 127,564,873.50 | 0.85% | 120,000,000.00 | 94.07% | 7,564,873.50 |
| Provision for bad debt by the portfolio | 14,615,967,388.93 | 99.16% | 233,148.78 | 0.00% | 14,615,734,240.15 | 14,837,606,322.67 | 99.15% | 520,873.19 | 0.00% | 14,837,085,449.48 |
| Including: | ||||||||||
| Other receivables tested for impairment on the portfolio with | 14,615,967,388.93 | 99.16% | 233,148.78 | 0.00% | 14,615,734,240.15 | 14,837,606,322.67 | 99.15% | 520,873.19 | 0.00% | 14,837,085,449.48 |
| characteristics of credit risk | ||||||||||
| Total | 14,740,066,642.10 | 100.00% | 120,233,148.78 | 0.82% | 14,619,833,493.32 | 14,965,171,196.17 | 100.00% | 120,520,873.19 | 0.81% | 14,844,650,322.98 |
Provision for bad debt by individual item: CNY 120,000,000.00
Unit：CNY
| Name | Opening Balance | Closing Balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Proportion | Reason | |
| Saving deposits involving contract disputes | 127,564,873.50 | 120,000,000.00 | 124,099,253.17 | 120,000,000.00 | 96.70% | Provision based on legal opinion |
| Total | 127,564,873.50 | 120,000,000.00 | 124,099,253.17 | 120,000,000.00 | ||
Provision for bad debt by the portfolio: CNY 233,148.78
Unit：CNY
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Proportion | |
| Risk portfolio | 3,139,064.91 | 233,148.78 | 7.43% |
| Within 1 year | 2,966,834.35 | 148,341.72 | 5.00% |
| 1-2 years | 92,550.56 | 9,255.06 | 10.00% |
| 2-3 years | |||
| 3-4 years | 6,880.00 | 2,752.00 | 40.00% |
| 4-5 years | |||
| Over 5 years | 72,800.00 | 72,800.00 | 100.00% |
| Other portfolio | 14,612,828,324.02 | ||
| Total | 14,615,967,388.93 | 233,148.78 | |
Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit：CNY
| Provision for bad debt | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of January 1, 2024 | 520,873.19 | 120,000,000.00 | 120,520,873.19 | |
| Balance of January 1, 2024 in the current period | ||||
| Allowance of the current period | 148,208.29 | 148,208.29 | ||
| Reversal of the current period | 435,932.70 | 435,932.70 | ||
| Balance of | 233,148.78 | 120,000,000.00 | 120,233,148.78 |
December 31, 2024
The basis for the division of each stage and the withdrawal proportion of bad debt provisionThe basis for division is that other receivables with single bad debt provision represent creditimpairment losses incurred since initial recognition (Stage 3), while the remaining portion iscategorized based on expected credit risk. Withdrawal proportions of bad debt provision are 0.002%for Stage 1 and 96.70% for Stage 3, totalling 0.82%.
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable ? N/A
19.2.1.4. Provision and recovery for bad and doubtful debt in the current periodAllowance of provision for bad debt:
Unit：CNY
| Type | Opening Balance | Changes in current period | Closing Balance | |||
| Allowance | Reversal or recovery | Write-off or verification | Other | |||
| Bad debt provision for other receivables | 120,520,873.19 | 148,208.29 | 435,932.70 | 120,233,148.78 | ||
| Total | 120,520,873.19 | 148,208.29 | 435,932.70 | 120,233,148.78 | ||
19.2.1.5. Other receivables written-off in the current period
There is no other receivables written-off in the current period.
19.2.1.6. Top five entities with the largest balances of the other receivables
Unit：CNY
| Company Name | Nature | Closing Balance | Aging | Proportion in total receivables | Provisioning amount at period end |
| Luzhou Laojiao Brewing Co., Ltd. | Internal transactions | 14,193,164,072.04 | Within 1 year | 96.29% | |
| Luzhou Laojiao Import and Export Trade Co., Ltd. | Internal transactions | 200,691,342.66 | Within 1 year | 1.36% | |
| Luzhou Laojiao New Retail Co., Ltd. | Internal transactions | 153,223,495.94 | Within 1 year | 1.04% | |
| Saving deposits involving contract disputes | Saving deposits involving contract disputes | 124,099,253.17 | Over 5 years | 0.84% | 120,000,000.00 |
| Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd. | Internal transactions | 51,505,116.46 | Within 1 year | 0.35% | |
| Total | 14,722,683,280.27 | 99.88% | 120,000,000.00 |
19.2.1.7. Presentation in other receivables due to the centralized management of fundsThere were no other receivables presented in due to the centralized management of funds in thecurrent period.
19.3. Long-term equity investments
Unit：CNY
| Item | Closing Balance | Opening Balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiary | 3,952,848,501.33 | 3,952,848,501.33 | 3,790,179,449.26 | 3,790,179,449.26 | ||
| Investment in associates and joint venture | 2,785,645,158.35 | 2,567,098.80 | 2,783,078,059.55 | 2,707,254,604.74 | 2,567,098.80 | 2,704,687,505.94 |
| Total | 6,738,493,659.68 | 2,567,098.80 | 6,735,926,560.88 | 6,497,434,054.00 | 2,567,098.80 | 6,494,866,955.20 |
19.3.1. Investment in subsidiary
Unit：CNY
| Investee | Opening Balance (book value) | Opening balance of provision for impairment | Changes in current period | Closing Balance (book value) | Closing balance of provision for impairment | |||
| Increase | Decrease | Provision for impairment | Other | |||||
| Luzhou Laojiao Sales Co., Ltd. | 293,787,635.54 | 44,190,259.97 | 337,977,895.51 | |||||
| Luzhou Laojiao Brewing Co., Ltd. | 3,291,776,616.90 | 76,085,443.861 | 27,653,610.21 | 3,395,515,670.97 | ||||
| Luzhou Laojiao Health Liquor Industry Co., Ltd. | 9,771,607.98 | 1,669,712.74 | 11,441,320.72 | |||||
| Luzhou Laojiao Electronic Commerce Co., Ltd. | 60,971,611.79 | 166,571.44 | 61,138,183.23 | |||||
| Luzhou Pinchuang Technology Co., Ltd. | 94,025,229.15 | 7,599,230.15 | 101,624,459.30 | |||||
| Luzhou Laojiao Internation | 12,730,832.19 | 2,010,530.63 | 14,741,362.82 | |||||
| al Development (Hong Kong) Co., Ltd. | ||||||||
| Luzhou Laojiao New Retail Co., Ltd. | 27,115,915.71 | 3,293,693.07 | 30,409,608.78 | |||||
| Total | 3,790,179,449.26 | 76,085,443.86 | 86,583,608.212 | 3,952,848,501.33 |
Note: 1 The long-term equity investment increased by CNY 76,085,443.86 due to that the Companymade a physical capital increase in Luzhou Laojiao Brewing Co., Ltd. this year.2 The increase in the current period are due to the Company's restricted share incentive business,where the parent company (the settlement enterprise) is an investor in the recipient subsidiary (theservice enterprise) and is recognized as a long-term equity investment in the subsidiary (the recipientservice enterprise) based on the fair value of the equity instruments at the date of grant, and thecapital reserve (other capital reserves) is recognized at the same time.
19.3.2. Investment in associate and joint venture
Unit：CNY
| Investee | Opening Balance (book value) | Opening Balance of provision for impairment | Changes in current period | Closing Balance (book value) | Closing Balance of provision for impairment | |||||||
| Increase | Decrease | Gain or loss recognized under equity method | Adjustments of other comprehensive income | Other changes in equity | Cash divided or profit declared | Provision for impairment | Other | |||||
| 1. Joint Ventures | ||||||||||||
| 2. Associate | ||||||||||||
| Huaxi Securities Co., Ltd. | 2,535,630,372.30 | 2,567,098.80 | 75,663,468.99 | 17,154,748.48 | 13,641,557.20 | 2,614,807,032.57 | 2,567,098.80 | |||||
| Luzhou Laojiao Postdoctoral Workstation Technology Innovation Co., Ltd. | 38,339,051.51 | -1,657,333.41 | 36,681,718.10 | |||||||||
| Sichuan Devel | 5,897,980.85 | -19,699.92 | 5,878,280.93 | |||||||||
| opment Liquor Investment Co., Ltd. | ||||||||||||
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 124,820,101.28 | 890,926.67 | 125,711,027.95 | |||||||||
| Subtotal | 2,704,687,505.94 | 2,567,098.80 | 74,877,362.33 | 17,154,748.48 | 13,641,557.20 | 2,783,078,059.55 | 2,567,098.80 | |||||
| Total | 2,704,687,505.94 | 2,567,098.80 | 74,877,362.33 | 17,154,748.48 | 13,641,557.20 | 2,783,078,059.55 | 2,567,098.80 |
The recoverable amount is determined based on the net amount of the fair value minus disposalcosts
□Applicable ? N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□Applicable ? N/A
19.4. Operating revenue and cost of sales
Unit：CNY
| Item | Current Period | Previous Period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Primary business | 11,068,191,164.35 | 8,451,791,359.73 | 9,122,675,610.69 | 6,913,171,144.79 |
| Other business | 22,778,534.03 | 2,521,249.13 | 22,784,970.56 | 1,890,828.17 |
| Total | 11,090,969,698.38 | 8,454,312,608.86 | 9,145,460,581.25 | 6,915,061,972.96 |
Details:
Unit：CNY
| Contract category | Baijiu sales | Total | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Commodity type | ||||
| Including: | ||||
| Medium and high grade baijiu | 10,975,542,666.80 | 8,405,571,255.47 | 10,975,542,666.80 | 8,405,571,255.47 |
| Other baijiu | 92,648,497.55 | 46,220,104.26 | 92,648,497.55 | 46,220,104.26 |
| Other revenue | 22,778,534.03 | 2,521,249.13 | 22,778,534.03 | 2,521,249.13 |
| By operating segment | ||||
| Including: | ||||
| Domestic | 11,090,969,698.38 | 8,454,312,608.86 | 11,090,969,698.38 | 8,454,312,608.86 |
| Outbound | ||||
| Market or customer type | ||||
| Including: | ||||
| Contract type | ||||
| Including: | ||||
| Recognize revenue at point in time | 11,068,976,487.63 | 8,451,809,714.55 | 11,068,976,487.63 | 8,451,809,714.55 |
| Recognize revenue by time period | 21,993,210.75 | 2,502,894.31 | 21,993,210.75 | 2,502,894.31 |
| By commodity transfer time | ||||
| Including: | ||||
| By contract term | ||||
| Including: | ||||
| By sales channel | ||||
| Including: | ||||
| Total | 11,090,969,698.38 | 8,454,312,608.86 | 11,090,969,698.38 | 8,454,312,608.86 |
Other statementsNote 1: The Company's main business is the production and sale of baijiu. Revenue is recognized atthe point when the Company transfers control of the relevant goods to the customer and fulfills itsperformance obligations.
Information in relation to the transaction price apportioned to the residual contract performanceobligation:
The amount of revenue corresponding to performance obligations of contracts signed but notperformed or not fully performed yet was CNY 3,354,639.36 at the period-end, among which CNY3,354,639.36 was expected to be recognized in 2025.
19.5. Investment income
Unit：CNY
| Item | Current Period | Previous Period |
| Investment income from long-term | 9,761,010,919.08 | 9,903,401,819.29 |
| equity investments under cost method | ||
| Investment income from long-term equity investments under equity method | 74,877,362.33 | 43,134,582.17 |
| Investment income gained during the period of holding held-for-trading financial assets | 46,953,767.52 | 2,391,009.80 |
| Investment income from disposal of held-for-trading financial assets | -29,465,560.31 | 4,868,720.17 |
| Dividends income gained during the period of holding other equity instrument investment | 14,976,454.55 | 11,268,626.39 |
| Income from derecognition of financial assets measured at fair value with changes recorded in other comprehensive income1 | -21,417,110.91 | |
| Investment income gained from put-back and early redemption of bonds | -1,055,251.33 | |
| Total | 9,846,935,832.26 | 9,964,009,506.49 |
Note: 1. The Company presented the discounting expenses of derecognized bank acceptance billsunder this account.
19.6. Other
There is no major restriction on the repatriation of the Company's investment income.
1. Investment income from long-term equity investments under the cost method
| Item | Current Period | Previous Period |
| Luzhou Laojiao Sales Co., Ltd. | 9,761,010,919.08 | 9,870,272,284.78 |
| Luzhou Laojiao New Retail Co., Ltd. | 21,928,367.88 | |
| Luzhou Baonuo Biotechnology Co., Ltd. | 11,201,166.63 | |
| Total | 9,761,010,919.08 | 9,903,401,819.29 |
2. Investment income from long-term equity investments under the equity method
| Item | Current Period | Previous Period |
| Huaxi Securities Co.,Ltd. | 75,663,468.99 | 44,167,627.40 |
| Luzhou Laojiao Postdoctoral Workstation Technology Innovation Co., Ltd. | -1,657,333.41 | -1,846,843.26 |
| Sichuan Development Liquor Investment Co., Ltd. | -19,699.92 | 8,326.61 |
| CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. | 890,926.67 | 805,471.42 |
| Total | 74,877,362.33 | 43,134,582.17 |
20. Supplementary information
20.1. Detailed statement of non-recurring gains and losses in the current period (+for gain, - for loss)? Applicable □ N/A
Unit：CNY
| Item | Amount | Note |
| Gains or losses on disposal non-current assets | 1,058,750.22 | |
| Government grants recognized in profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 41,225,885.28 | |
| Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges that is related to the Company's normal business operations) | 54,342,655.46 | |
| Reverse of bad debt provision of accounts receivable individually conducting impairment test | 422,217.14 | |
| Other non-operating income and expenditure except above-mentioned items | -1,550,111.21 | |
| Less: Corporate income tax | 20,932,166.54 | |
| Minority interests (after tax) | 1,095,423.83 | |
| Total | 73,471,806.52 | -- |
Other items that meet the definition of non-recurring gain/loss:
□ Applicable ? N/A
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securitiesto the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
□ Applicable ? N/A
20.2. Return on equity and earnings per share
| Profit during reporting period | Weighted average ROE | EPS (CNY/Share) | |
| Basic EPS | Diluted EPS | ||
| Net profits attributable to common shareholders of the Company | 30.44% | 9.18 | 9.18 |
| Net profits attributable to common shareholders of the Company before non-recurring gains and losses | 30.27% | 9.13 | 9.13 |
20.3. Differences between accounting data under domestic and overseasaccounting standards
20.3.1. Differences of net profit and net assets disclosed in financial reports prepared underinternational and Chinese accounting standards
□ Applicable ? N/A
20.3.2. Differences of net profit and net assets disclosed in financial reports prepared underoverseas and Chinese accounting standards
□ Applicable ? N/A
20.3.3. Explain reasons for the differences between accounting data under domestic andoverseas accounting standards; for any adjustment made to the difference existing in the dataaudited by the foreign auditing agent, such foreign auditing agent’s name shall be clearlystated
20.4. Other
None