Stock Code: 600519 Stock Abbr.: Kweichow Moutai
KWEICHOW MOUTAI CO., LTD.
ANNUAL REPORT 2022
Important StatementsI. The Board of Directors, Board of Supervisors, directors, supervisors and the senior managementof the Company guarantee that the information presented in this report is free of any false records,misleading statements or material omissions, and shall bear individual and joint legal liabilities forthe truthfulness, accuracy and completeness of its contents.
II. All directors of the Company attend the meeting of the board of directors.
III. Baker Tilly China CPAs has issued a standard unqualified audit report for the Company.
IV. Ding Xiongjun, responsible person for the Company, Jiang Yan, responsible person foraccounting work, and Cai Congying, responsible person for the Company’s financial affairs(Accounting Supervisor), have warranted that the financial statements in this report are true,accurate and complete.
V. The proposed profit distribution plan or the proposed plan of capitalization of capital reservesin the reporting period approved by the resolution of the Board of DirectorsOn the basis of a total capital of 1,256,197,800 shares by the end of 2022, all shareholders will bedistributed a cash dividend of CNY 259.11 (before tax) for every 10 shares, with a total profit distributionof CNY 32,549,341,195.80. If there is any change in the total share capital of the company before theequity registration date for the implementation of equity distribution, the total dividend amount will bemaintained unchanged, and the dividend ratio per share will be adjusted accordingly. The above profitdistribution proposal shall be submitted to the general assembly of shareholders of the Company fordeliberation and approval before implementation.
VI. Risk disclosure statement for forward-looking statements
Forward-looking statements in this report concerning future plans or development strategies do notconstitute substantial promises to investors, due to the related uncertainty. Investors are advised to beaware of their own investment risks.
VII. Existence of non-operational embezzlement of funds by controlling shareholders or theirassociated partiesNo
VIII. Existence of Financial Guarantees to External Parties in Violation of the Regulated DecisionProceduresNo
IX. Over half of the directors’ failure to guarantee the truthfulness, accuracy and completeness ofthe Company’s disclosed annual report.No
X. Significant risk statementsThe Company has elaborated the potential risks in the chapter of “The Company Discussion and Analysison its Future Development”. Investors are advised to pay their due attention.
XI. Information StatementAll information and data cited in this Report are objective and authentic. Financial figures herein are recorded in CNY, unless otherwise specified. This Report is prepared in Chinese and English, respectively.In case of any ambiguity in the Chinese and English texts, the Chinese text shall prevail.
Contents
Section I Definitions ...... 5
Section II Company Profile and Key Financial Results ...... 5
Section III Management’s Discussion and Analysis ...... 8
Section IV Corporate Governance ...... 26
Section V Environment and Social Responsibility ...... 46
Section VI Significant Events ...... 50
Section VII Changes in Shares and Information about Shareholders ...... 66
Section VIII Preferred Shares ...... 71
Section IX Information about Bond ...... 71
Section X Financial Report ...... 71
| Documents Available for Reference | References include the accounting statements signed and stamped by the respective individuals in charge of the company, the company accounting work, and the accounting department (their accounting supervisor). |
| References include the audit report original signed and stamped by the certified public accountant and stamped by the accounting firm. | |
| The originals of company documents and announcements that are publicly disclosed in China Securities Journal and Shanghai Securities News during the reporting period. |
Section I Definitions
1. Definitions
Unless it is otherwise referred in the context, the terms in this report have the following meanings:
| Terms and Definitions | ||
| CSRC | refers to | China Securities Regulatory Commission |
| SSE | refers to | Shanghai Stock Exchange |
| Company, the company | refers to | Kweichow Moutai Co., Ltd. |
| Controlling shareholder, group company | refers to | China Kweichow Moutai Distillery (Group) Co., Ltd. |
| Reporting period | refers to | Fiscal Year of 2022 |
| This report, the report | refers to | Annual Report 2022 |
Section II Company Profile and Key Financial Results
1. Corporate Information
| Name of the Company in Chinese | 贵州茅台酒股份有限公司 |
| Abbr. of the Company name in Chinese (if any) | 贵州茅台 |
| Name of the Company in English | Kweichow Moutai Co., Ltd. |
| Legal Representative | Ding Xiongjun |
2. Contact Information
3. Company profile
| Registered address | Maotai Town, Renhuai City, Guizhou Province |
| Office address | Maotai Town, Renhuai City, Guizhou Province |
| Zip code of office address | 564501 |
| Website address | http://www.moutaichina.com/ |
| E-mail address | mtdm@moutaichina.com |
4. Information disclosure and the place where the report is available
| Media name and its website address where the report is disclosed | China Securities Journal and Shanghai Securities News |
| Website address of the stock exchange where the report is disclosed | http://www.sse.com.cn/ |
| Place where the report is available | The office of the Board of Directors |
| Secretary of the board | Representative for securities affairs | |
| Name | Jiang Yan | Cai Congying |
| Address | Maotai Town, Renhuai City, Guizhou Province | Maotai Town, Renhuai City, Guizhou Province |
| Tel. | 0851-22386002 | 0851-22386002 |
| Fax | 0851-22386193 | 0851-22386193 |
| mtdm@moutaichina.com | mtdm@moutaichina.com |
5. Stock information
| Stock information | ||||
| Stock type | Stock exchange where the shares are listed | Stock abbreviation | Stock code | Previous stock Abbreviation (if any) |
| A shares | Shanghai Stock Exchange | Kweichow Moutai | 600519 | |
6. Other information
| Appointed accounting firm (domestic) | Name | Baker Tilly China CPAs |
| Office address | Building 12, Foreign Language Culture and Creativity Park, 19 Chegongzhuang West Road, Haidian District, Beijing | |
| Name of the signing accountant | Tong Wenguang, Liu Zonglei, Yang Shu |
7. Key Accounting Data and Financial Indicators in the past three years
7.1 Key accounting data
Unit: CNY
| Key accounting data | 2022 | 2021 | Change (%) | 2020 |
| Operating revenue | 124,099,843,771.99 | 106,190,154,843.76 | 16.87 | 94,915,380,916.72 |
| Net profits attributable to shareholders of the Public Company | 62,716,443,738.27 | 52,460,144,378.16 | 19.55 | 46,697,285,429.81 |
| Net profits attributable to shareholders of the Public Company after deducting non-recurring gains and losses | 62,791,872,697.72 | 52,581,102,656.24 | 19.42 | 47,016,420,742.73 |
| Net cash flows from operating activities | 36,698,595,830.03 | 64,028,676,147.37 | -42.68 | 51,669,068,693.03 |
| 31 December 2022 | 31 December 2021 | Changes of the Same Period(%) | 31 December 2020 | |
| Net assets attributable to shareholders of the Company | 197,506,672,396.00 | 189,539,368,797.29 | 4.20 | 161,322,735,087.56 |
| Total assets | 254,364,804,995.25 | 255,168,195,159.90 | -0.31 | 213,395,810,527.46 |
| Share capital | 1,256,197,800.00 | 1,256,197,800.00 | 1,256,197,800.00 |
Note: Causes for the decrease in Net cash flows from operating activities: first, the group companytransferred the equity of Guizhou Xijiu Co., Ltd., which is no longer a member of the company’s holdingsubsidiary Kweichow Moutai Group Finance Co., Ltd, resulting the customer deposits to reduce ; Second,the company's holding subsidiary, Kweichow Moutai Group Finance Co., Ltd., had a net increase inDeposits with other banks that cannot be withdrawn at any time in the current period.
7.2 Key financial indicators
| Key financial indicators | 2022 | 2021 | Change (%) | 2020 |
| Basic earnings per share (CNY/share) | 49.93 | 41.76 | 19.55 | 37.17 |
| Diluted earnings per share (CNY/share) | 49.93 | 41.76 | 19.55 | 37.17 |
| Basic earnings per share after non-recurring gains and losses | 49.99 | 41.86 | 19.42 | 37.43 |
| (CNY/share) | ||||
| Weighted average ROE (%) | 30.26 | 29.90 | Increase by 0.36 percentage point(s) | 31.41 |
| Weighted average ROE after non-recurring gains and losses (%) | 30.29 | 29.97 | Increase by 0.32 percentage point(s) | 31.63 |
8. Differences in accounting data by domestic and overseas accounting standards
8.1 Differences in the net profits and net assets attributable to shareholders of the company disclosedin the financial reports prepared under the international accounting standards and Chinaaccounting standards
□Applicable √N/A
8.2 Differences in the net profits and net assets attributable to shareholders of the Companydisclosed in the financial reports prepared under the overseas accounting standards and Chinaaccounting standards
□Applicable √N/A
8.3 Explanations for above accounting data differences
□Applicable √N/A
9. Quarterly key financial data in 2022
Unit: CNY
| Q1 (Jan.-Mar.) | Q2 (Apr.-Jun.) | Q3 (Jul.-Sept.) | Q4 (Oct.-Dec.) | |
| Operating revenue | 32,295,763,804.41 | 25,321,102,842.88 | 29,543,366,111.76 | 36,939,611,012.94 |
| Net profits attributable to shareholders of the Company | 17,244,968,587.32 | 12,548,939,490.51 | 14,605,907,505.71 | 18,316,628,154.73 |
| Net profit attributable to ordinary shareholders of the company after deducting non-recurring profit and loss | 17,243,064,446.83 | 12,519,757,284.58 | 14,630,409,785.50 | 18,398,641,180.81 |
| Net cash flows from operating activities | -6,876,059,093.79 | 6,864,895,152.49 | 9,416,500,950.05 | 27,293,258,821.28 |
Explanations for the differences between quarterly data and those disclosed in previous periodicalreports
□Applicable √N/A
10. Non-recurring Items and Their Gains/Losses
√Applicable □N/A
Unit: CNY
| Non-recurring gains and losses | Amount in 2022 | Note (if applicable) | Amount in 2021 | Amount in 2020 |
| Gain or loss from disposal of non-current assets | -20,567,757.19 | -11,920,829.77 | -100,113.92 | |
| Government grants accounted for, in the profit or loss for the current | 14,973,304.55 | 4,616,000.00 | 2,028,500.00 |
| period (except for the government grants closely related to the business of the Company and continuously given at a fixed amount or quantity in accordance with certain standards) | ||||
| Gains and losses from changes in fair value arising from holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, as well as investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investments, except for the effective hedging business associated with the company’s regular business operations. | -3,750,122.23 | 4,966,170.34 | ||
| Other non-operational income and expenditure in addition to the items listed above. | -157,251,041.33 | -210,928,052.99 | -438,037,777.35 | |
| Other items of gains and losses that fall into the category of non-recurring gains and losses | 63,840,000.00 | 61,031,069.26 | 237,455.55 | |
| Less: Income tax impact | -24,751,373.49 | -40,237,983.93 | -107,726,441.35 | |
| Minority shareholder equity impact (after tax) | 1,174,838.97 | 244,326.28 | -4,044,011.11 | |
| Total | -75,428,959.45 | -120,958,278.08 | -319,135,312.92 |
Section III Management’s Discussion and Analysis
1. Discussion and analysis of business situation
In 2022, the Company insisted on the guidance of Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era, thoroughly studied and implement the spirit of the 20th National Congressof the Communist Party of China and the important speech addressed by the General Secretary Xi Jinpingduring the inspection in Guizhou, fully implemented the spirit of the 13th Congress of PartyRepresentatives of Guizhou Province and the decision-making arrangements of the provincial partycommittee and government, and focused on the strategic goal of "double doubling, double consolidationand double building" of the group company as well as the high-quality development path of “five-line” ofMoutai. It was not afraid of difficulties and dangers, production and operation, and reform anddevelopment. It delivered a strong performance by successfully completing all the objectives and tasks ofthe year and written a magnificent chapter of forging ahead with perseverance and common dreams andwishes.
2. Industry sector situation in the reporting period
See “Industry profile” and “Industry pattern and trend” in this report.
3. Business scope in the reporting period
The main business of the Company is the production and sales of Moutai liquor and a series of liquors.The leading product “Kweichow Moutai” is the originator and typical representative of Daqu sauce-flavored liquor in China. It is a brand that embodies national geographical indication products, organicfoods and national intangible cultural heritages. The marketing network of the Company covers thedomestic market and 64 countries and regions on five continents. Over the years, the Company insistedon the pursuit of product quality. With careful care for brewing ecology, the inheritance and innovation oftraditional process, and the continuous development of corporate culture, the Company continuouslyempowered the enterprise and promoted high-quality development and modernization construction of theenterprise.
The Company’s business model is: raw materials acquisition – merchandise production – sales. Theacquisition of raw materials is carried out according to the Company's production and sales plan; theproduction process of products is as follows: yeast making - Chinese Baijiu making – cellaring - blending- packaging; the sales model is as follows: the Company's products are sold through direct sales anddistributor channels. Direct sales channels refer to self-operated channels and the "i Moutai" digitalmarketing platform channel, while distributor channels refer to social distributors, supermarkets, e-commerce and other channels.
4. Analysis of core competitiveness
√Applicable □N/A
The Company has five core competitiveness of "ecology, technic, quality, brand and culture". Thecompany also has four core potentials, which are "unique geographical protection of origin, irreproduciblemicrobial colony, unique brewing technology inherited for thousands of years, and high-quality baseliquor resources stored for a long time" There was no significant change in the Company's corecompetitiveness during the reporting period.
5. Business operation briefing for the reporting period
First, the Company went against the trend and achieved "excellent" performance. In the overall economicdownturn, the Company realized growth against the trend, achieving a total of operating revenue of CNY
127.554 billion, representing a year-on-year increase of 16.53%; It is estimated that the net profitattributable to shareholders of listed companies will reach CNY 62.716 billion, representing a year-on-year increase of 19.55%; the main indicators display steady progress and will hit a record high. In 2022,for Kantar BrandZ's list of the most valuable brands in China, Moutai ranked third with a brand value ofUSD 108.49 billion, and ranked first among liquor brands; the market value of Kweichow Moutairemained above CNY 2 trillion, ranking first in A shares.
Second, the Company has embarked on the journey of "beauty" with dreams. We used the "five-in-onemarketing method" to usher in the era of marketing beauty; adhered to the principle of taking "business"as the foundation, "chain" as the reinforcement way, and "circle" as the tool for beauty creation, andbuilt a modern industrial chain ecosystem; insisted on the beauty of scientific and technological inheritanceand innovation, implemented the "four projects" and "four plans" for talent training, and built a highlandfor scientific and technological innovation talents. The Company took "beauty" as the core and stroveforward.
Third, the Company took the initiative to change and opened up a "new" track. We successfully launchedthe i Moutai digital marketing platform with the registered users of 30 million. The platform became aphenomenal APP, achieving sales revenue of CNY 11.883 billion. With the launch of Moutai ice cream,"Ice cross the Country" started a journey of alcohol and love among young people. With culture export,the Company appeared at the APEC summit in Thailand and actively spread Moutai culture. The Companytook the initiative to integrate with the international market and focused on coordinating the constructionof domestic and international markets.
Fourth, the Company has accumulated "strong" kinetic energy through reform. The Company completedthe separation of institutions and the diversion of personnel, and comprehensively finished the tasks of thethree-year action of state-owned enterprise reform, and the efficiency of corporate governance has beensignificantly improved. The Company started the capacity expansion of Moutai and dealt with a numberof long-delayed legacy projects. It started more than 100 scientific and technological projects.
Fifth, a hymn of “courage” was composed with the fact that the Company overcame difficulties andforged ahead. The Company united to overcame the difficulties together, insisted on the principle of notleaving the front line on account of minor wounds, and made every effort to ensure the normal operationof production. All posts and lines wrote a touching and unforgettable chapter of struggle.
5.1 Main business analysis
A. Analysis of accounting item changes related to the income statement and the cash flow statement
Unit: CNY
| Item | Amount in the reporting period | Amount in the same reporting period of last year | YoY Change (%) |
| Operating revenue | 124,099,843,771.99 | 106,190,154,843.76 | 16.87 |
| Operating costs | 10,093,468,616.63 | 8,983,377,809.96 | 12.36 |
| Sales expenses | 3,297,724,190.94 | 2,737,369,434.78 | 20.47 |
| General and administrative expenses | 9,012,191,073.63 | 8,450,274,065.03 | 6.65 |
| Financial expenses | -1,391,805,826.72 | -934,523,406.02 | N/A |
| R&D expenses | 135,185,680.40 | 61,923,213.59 | 118.31 |
| Net cash flows from operating activities | 36,698,595,830.03 | 64,028,676,147.37 | -42.68 |
| Net cash flows from investment activities | -5,536,826,334.90 | -5,562,445,704.34 | N/A |
| Net cash flows from financing activities | -57,424,528,979.83 | -26,564,141,388.96 | N/A |
Causes for the operating revenue change: mainly due to the increase of sales volume and the change ofproduct structure in the reporting period.
Causes for the operating expense change: majorly due to the sales increase, the production costs increase,and the product structure change in the reporting period.
Causes for the sales expense change: mainly due to the advertising and marketing expense increases forthe Moutai-flavor series liquor in the reporting period.
Causes for the general and administrative expense change: mainly due to the increase in trademarklicense fees and depreciation of fixed assets in the reporting period.
Causes for the financial expense change: mainly due to the increase of commercial bank interest incomeincrease in the reporting period.
Causes for the R&D expense change: majorly due to the increase of R&D project increases in the reportingperiod.
Causes for the Net cash flow change from operating activities: first, the group company transferred theequity of Guizhou Xijiu Co., Ltd., which is no longer a member of the company’s holding subsidiaryKweichow Moutai Group Finance Co., Ltd, resulting the customer deposits to reduce ; Second, thecompany's holding subsidiary, Kweichow Moutai Group Finance Co., Ltd., had a net increase inDeposits with other banks that cannot be withdrawn at any time in the current period.
Causes for the Net cash flow change from investment activities: mainly due to the increase in the cashpaid to acquire and construct fixed assets, intangible assets and other long-term assets in the reporting
period and the certificate of deposit with large amount purchased in the previous period.
Causes for Net cash flow change from financing activities: Firstly, in December 2022, the companyimplemented a special dividend plan to repay shareholders.
Detailed reasons for any significant changes to the business type, profit structure or profit sources of theCompany in the reporting period.
□Applicable √N/A
B. Income and cost analysis
√Applicable □N/A
a. Main business grouped by business segment, by product, by region and by sales model.
Unit: CNY
| Main business grouped by business segment | ||||||
| Business segment | Operating revenue | Operating costs | Gross profit margin | YoY Change of operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
| Liquor | 123,772,332,348.71 | 9,896,113,336.80 | 92.00 | 16.70 | 11.30 | Increase by 0.38 percentage point(s) |
| Main business grouped by product | ||||||
| Product | Operating revenue | Operating costs | Gross profit margin | YoY Change of operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
| Moutai | 107,833,685,277.94 | 6,265,810,909.88 | 94.19 | 15.37 | 12.33 | Increase by 0.16 percentage point(s) |
| Other liquor | 15,938,647,070.77 | 3,630,302,426.92 | 77.22 | 26.55 | 9.57 | Increase by 3.53 percentage point(s) |
| Main business grouped by region | ||||||
| Region | Operating revenue | Operating costs | Gross profit margin | YoY Change of operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
| Domestic | 119,532,752,861.59 | 9,558,682,149.59 | 92.00 | 15.56 | 10.51 | Increase by 0.36 percentage point(s) |
| Overseas | 4,239,579,487.12 | 337,431,187.21 | 92.04 | 61.91 | 39.60 | Increase by 1.27 percentage point(s) |
| Main business condition by sales model | ||||||
| Sales model | Operating revenue | Operating costs | Gross profit margin | YoY Change of Operating revenue (%) | YoY change of operating costs (%) | YoY change of gross profit margin (%) |
| Wholesale agency | 74,393,594,687.11 | 8,021,891,276.89 | 89.22 | -9.31 | 0.80 | Decrease by 1.08 percentage point(s) |
| Direct sales | 49,378,737,661.60 | 1,874,222,059.91 | 96.20 | 105.49 | 100.97 | Decrease by 0.08 percentage point(s) |
b. Analysis of production volume, sales volume and inventory
√Applicable □N/A
| Main product | Unit | Production volume | Sales volume | Inventory | YoY change of production volume (%) | YoY change of sales volume (%) | YoY change of inventory (%) |
| Liquor | Ton | 91,885.83 | 68,176.32 | 276,623.17 | 8.46 | 2.62 | 6.09 |
c. Execution situation of major acquisition contracts and major sales contracts
□Applicable √N/A
d. Cost Analysis Table
Unit: CNY
| Condition by business segment | |||||||
| By business segment | Main breakdown items of cost | Amount in the reporting period | As % of total cost (%) | Amount in the same reporting period of previous year | As % of total cost in previous year (%) | YoY change (%) | Description of reasons |
| Liquor | 9,896,113,336.80 | 100 | 8,890,990,510.72 | 100 | 11.30 | ||
| Condition by product | |||||||
| By product | Main breakdown items of cost | Amount in the reporting period | As % of total cost (%) | Amount in the same reporting period of previous year | As % of cost in previous year (%) | YoY change (%) | Description of reasons |
| Liquor | Direct materials costs | 5,344,548,452.24 | 54.00 | 5,006,828,759.74 | 56.32 | 6.75 | |
| Direct labor costs | 3,395,434,595.85 | 34.31 | 2,776,100,778.17 | 31.22 | 22.31 | ||
| Manufacturing costs | 558,168,244.61 | 5.64 | 592,850,869.35 | 6.67 | -5.85 | ||
| Fuels and energies | 342,073,450.40 | 3.46 | 271,547,032.80 | 3.05 | 25.97 | ||
| Transportation costs | 255,888,593.70 | 2.59 | 243,663,070.66 | 2.74 | 5.02 | ||
| Total | 9,896,113,336.80 | 100.00 | 8,890,990,510.72 | 100.00 | 11.30 |
e. Any share changes of subsidiaries merger scope changes in the reporting period
□Applicable √N/A
f. Information about significant changes or adjustments of the Company’s businesses, products or services
□Applicable √N/A
g. Major customers and suppliers
(1) Major customers
The top five customers constitute a total revenue of CNY 14,158.13 million, accounting for 11.44% ofannual total revenue, among which the revenue by the affiliated parties totaled CNY 5,276.56 million,accounting for 4.26% of the total annual revenue.
(2) Major suppliers
The total acquisition cost paid to the five suppliers is CNY 2,238.48 million, accounting for 35.33% ofannual total acquisition cost, among which the total to the affiliated parties is CNY 832.71 million,accounting for 13.14% of annual total acquisition cost.
C. Expenses
√Applicable □N/A
Financial expenses in the reporting period was CNY -1,391.81 million, comparing with that in the lastperiod of CNY -934.52 million, the cost reduction was mainly due to the increase of interest incomefrom commercial bank deposits.
D. R&D expensesa. Statement of R&D expenses
√Applicable □N/A
Unit: CNY
| R&D expenses in this period | 368,433,594.16 |
| Capitalized research and development investment in the reporting period | 190,536,632.60 |
| Total R&D expenses | 558,970,226.76 |
| as（%）in operating revenue | 0.45 |
| Proportion of capitalization of research and development investment (%) | 34.09 |
Note: The R&D expenses in this period include the R&D expenses listed in the operating costs and thecompensation of scientific researchers.
b. Statement of R&D employee
√Applicable □N/A
| Number of R&D employees | 761 |
| as (%) in the total number of the Company’s employees | 2.42 |
| Educational background structure of R&D employees | |
| Educational background structure type | Number in each educational background structure |
| Doctorate | 72 |
| Master’s degree | 174 |
| Undergraduate | 447 |
| Junior college | 45 |
| High school and below | 23 |
| Age structure of R&D employee | |
| Age structure type | Number in each age structure |
| under 30 (excluding 30) | 159 |
| 30-40 (including 30 but excluding 40) | 391 |
| 40-50 (including 40 but excluding 50) | 155 |
| 50-60 (including 50 but excluding 60) | 50 |
| over 60 | 6 |
c. Explanation
□Applicable √N/A
d. Reasons for the significant changes in R&D employees and their impacts on the Company’s futuredevelopment
□Applicable √N/A
E. Cash flows
√Applicable □N/A
Unit: CNY
| Item | Amount in this period | Amount in last period | Change (%) |
| Net increase in customer bank deposits and due to banks and other financial institutions | -8,916,033,228.67 | 7,511,166,145.93 | N/A |
| Tax refunds received | 33,191,912.56 | N/A | |
| Receipt of other cash related to business activities | 2,759,422,171.88 | 1,643,536,862.48 | 67.90 |
| Net increase in loans and advances to customers | 723,778,672.00 | 484,244,272.00 | 49.47 |
| Net increase in lending funds | -400,000,000.00 | N/A | |
| Net increase in central and interbank deposits | 13,037,761,321.90 | 559,089,326.28 | 2,231.96 |
| Cash paid for interests, fees, and commissions | 79,226,410.98 | 163,462,728.48 | -51.53 |
| Cash paid for taxes and surcharges | 62,043,324,506.36 | 44,609,684,025.28 | 39.08 |
| Cash received from investment recoveries | 6,079,930.68 | N/A | |
| Cash received from investment returns | 5,880,000.00 | 860,000.00 | 583.72 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 355,149.00 | 2,463,474.29 | -85.58 |
| Cash received from other investment relate activities | 4,971,762.18 | 9,983,452.63 | -50.20 |
| Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets | 5,306,546,416.54 | 3,408,784,532.01 | 55.67 |
| Cash paid for investments | 210,000,000.00 | 2,150,000,000.00 | -90.23 |
| Cash paid for other investment related activities | 31,486,829.54 | 23,048,029.93 | 36.61 |
| Cash paid for distribution of dividends and profits or payment of interests | 57,370,196,191.46 | 26,476,019,839.37 | 116.69 |
| Cash paid for other financing related activities | 54,332,788.37 | 88,121,549.59 | -38.34 |
| Impact of fluctuation in exchange rate on cash and cash equivalents | 911,088.01 | -2,026,542.60 | N/A |
(1) The decrease in the net increase in customer bank deposits and due to banks and other financialinstitutions was mainly due to the group company transferred the equity of Guizhou Xijiu Co., Ltd.,which is no longer a member of the company’s holding subsidiary Kweichow Moutai Group FinanceCo., Ltd, resulting the customer deposits to reduce , compared with the previous period.
(2) The increase in Tax refunds received was mainly due to the refunds of taxes from taxation authoritiesof Kweichow Moutai Liquor Sales Co., Ltd., a controlling subsidiary of the Company in the period.
(3) The increase in the cash received from other operating activities was mainly due to the increase inincome tax on withholding dividends and interest on deposits with commercial banks compared with theprevious period.
(4) The increase in the net increase in loans and advances to customers was mainly due to the increase inthe loans to group member units issued by Kweichow Moutai Group Finance Co., Ltd., a controllingsubsidiary of the Company, compared with the previous period.
(5) The change in the net increase of lending funds is mainly due to the recovery of interbank lendingfunds by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company, comparedwith the previous period.
(6) The increase in the net increase in deposits in central and interbank deposits was mainly due to theincrease in the time deposits with early withdrawal forbidden deposited by Kweichow Moutai GroupFinance Co., Ltd., a controlling subsidiary of the Company, compared with the previous period.
(7) The decrease in the cash paid for interest, handling fee and commission was mainly due to the decreasein the cash paid for interests by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary ofthe Company compared with the previous period.
(8) The increase in the cash paid for taxes and surcharges was mainly due to the taxes and surchargespayable at the beginning of the year and the increase in the taxes in the current period.
(9) The decrease in the cash received from investment recoveries due to the cash received from disposalof non-current financial assets in the previous period.
(10) The increase in the cash received from investment income was mainly due to the increase in the bondinterest received by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company,in the current period compared with the previous period.
(11) The decrease in the net cash received from disposal of fixed assets, intangible assets and other long-term assets was mainly due to the decrease in the cash received from disposal of fixed assets comparedwith the previous period.
(12) The increase in the cash paid to acquire or construct fixed assets, intangible assets and other long-term assets was mainly due to the increase in the cash paid for capital construction project compared withthe previous period.
(13) The decrease in the cash received from other investing activities was mainly due to the decrease inthe capital construction performance bond received compared with the previous period.
(14) The decrease in the cash paid for investments was mainly due to the purchase of certificate of depositsin the previous period.
(15) The increase in the cash paid for other investing activities was mainly due to the increase in the capitalconstruction performance bond refunded compared with the previous period.
(16) The increase in the cash paid for distribution of dividends and profits or payment of interest was dueto the company implemented a special dividend plan to repay shareholders in December 2022, whichincreasing the distribution of cash dividends compared with the previous period.
(17) The decrease in the cash paid for other financing related activities was mainly due to the decrease inthe cash for lease fees compared with the previous period.
(18) The increase in the impact of fluctuation in exchange rate on cash and cash equivalents was due tothe Company’s wholly-owned subsidiary, Kweichow Moutai Paris Trading, whose financial statement ofoverseas operation has been converted as the foreign currency translation differences in the statement ofrecording currency.
5.2 Reasons for significant changes of profit caused by non-core business
□Applicable √N/A
5.3 Analysis of assets and liabilities
√Applicable □N/A
A. Assets and liabilities
Unit: CNY
| Item | Amount by the end of this period | As % of total assets (%) | Amount by the end of last period | As % of total assets (%) | Change in percentage (%) | Explanation about any material change |
| Cash and cash equivalents | 58,274,318,733.23 | 22.91 | 51,810,243,607.11 | 20.30 | 12.48 | |
| Notes receivable | 105,453,212.00 | 0.04 | N/A | Mainly because the sales of bank acceptable bills by the Company’s wholly-owned subsidiary, Kweichow Moutai-Flavor Liquor Marketing Co., Ltd., has increased. | ||
| Accounts receivable | 20,937,144.00 | 0.008 | N/A | Mainly due to the receivables of liquor of Guizhou Laymau Liquor Industry Co., Ltd., a controlling subsidiary of the Company which have been recovered in January 2023. | ||
| Prepayment | 897,377,162.27 | 0.35 | 389,109,841.28 | 0.15 | 130.62 | Mainly the increase in the prepaid land listing deposit. |
| Inventories | 38,824,374,236.24 | 15.26 | 33,394,365,084.83 | 13.09 | 16.26 | |
| Current portion of non-current assets | 2,123,601,333.33 | 0.83 | N/A | Mainly the certificates of deposits reclassified to the current portion of non-current assets | ||
| Other current assets | 160,843,674.42 | 0.06 | 71,527,560.74 | 0.03 | 124.87 | Mainly due to the increase in |
| deduction VAT input tax. | ||||||
| Debt investment | 380,685,319.09 | 0.15 | 170,468,623.71 | 0.07 | 123.32 | Increase in the purchase of bonds by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company |
| Fixed assets | 19,742,622,547.86 | 7.76 | 17,472,173,182.85 | 6.85 | 12.99 | |
| Development expenditures | 190,536,632.60 | 0.07 | N/A | Mainly the new capitalized research and development expenses | ||
| Deferred income tax assets | 3,458,931,368.11 | 1.36 | 2,237,206,443.84 | 0.88 | 54.61 | Mainly caused by the increase of deferred tax assets due to the confirmation of internal transactions with unrealized profits. |
| Other non-current assets | 2,059,761,333.33 | 0.81 | N/A | Mainly the certificates of deposits reclassified to the current portion of non-current assets. | ||
| Payroll and employee benefits payable | 4,782,311,242.41 | 1.88 | 3,677,845,718.53 | 1.44 | 30.03 | Mainly the increase in annual bonus payable |
| Taxes payable | 6,896,555,423.83 | 2.71 | 11,979,802,144.01 | 4.69 | -42.43 | Mainly the decrease in tax payable at the end of the year |
| Deposits from customers and inter-bank | 12,874,043,355.42 | 5.06 | 21,763,575,647.32 | 8.53 | -40.85 | Decrease in the deposits absorbed from other member units of the group company by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company, |
| Total assets | 254,364,804,995.25 | 100.00 | 255,168,195,159.90 | 100.00 | -0.31 | Firstly, in December 2022, the company implemented a special dividend plan to repay shareholders, which increased the distribution of cash dividends; Secondly, the group company transferred the equity of Guizhou Xijiu Co., Ltd., which is no longer |
a member of thecompany’sholding subsidiaryKweichow MoutaiGroup FinanceCo., Ltd, resultingthe customerdeposits to reduce.
B. Main assets overseas
□Applicable √N/A
C. Restricted assets rights as of the end of this reporting period
□Applicable √N/A
D. Other description
□Applicable √N/A
5.4 Analysis of operating information in the industry
√Applicable □N/A
Analysis of operating information in the liquor production industryA. Industry profile
√Applicable □N/A
According to the National Bureau of statistics, the total output of Chinese Baijiu production enterprises inChinese Baijiu above designated size has reached 6,712.4 million liters in 2022, a slight decrease of 5.58%compared with the same period last year. The sales revenue has reached CNY 662.645 billion, a year-on-year increase of 9.64%; the total profit was CNY 220.172 billion, a year-on-year increase of 29.36%.
B. Production CapacityCurrent capacity
√Applicable □N/A
| Main Factories | Designed Capacity | Actual Capacity |
| Chinese Baijiu production workshop of Moutai | 42,742.50 | 56,810.44 |
| Series liquor production workshop | 38,060.00 | 35,075.39 |
Notes: (1) In the design capacity of 38,060.00 tons of series base liquor, due to the production processcharacteristics of the series liquor, the design capacity of 6,400.00 tons of series base liquor was placedinto operation in November 2022, and the actual capacity would be released in 2023. The basic liquordesign capacity for Moutai and series liquor refer to the planned capacity. (2) The company uses the weightunit to measure according to the usual practice. The units of measurement used for production, sales,inventory, and production capacity in this report are all in "tons".
Capacity under Construction
√Applicable □N/A
Unit: CNY 10,000
| Name of the Capacity under Construction | Planned investment amount | Amount invested in this reporting period | Accumulated investment amount |
| 30000-ton Moutai-flavored series liquor technical renovation project and its supporting facilities | 838,400.00 | 115,353.00 | 486,626.00 |
| First Phase Construction Project of the "14th Five-Year Plan" Maotai-flavor Liquor Xishui Tongminba | 411,000.00 | 42,850.00 | 42,850.00 |
| Technical transformation and construction project of Moutai Liquor during the 14th Five-Year Plan period | 1,551,600.00 | 85.00 | 85.00 |
Production capacity calculation standards
√Applicable □N/A
In the above “Current capacity” table, the design capacity is calculated according to the productionprocess requirements, combined with the plant specifications and the number of cellars, and the actualcapacity is calculated according to the actual base liquor production yield in the reporting period.
C. Inventory at the end of the reporting period
√Applicable □N/A
Unit: Ton
| Finished liquor | Semi-finished liquor (including base liquor) |
| 12,495.28 | 264,127.89 |
Note: The finished liquor is the Company’s packaged inventory stock (including Moutai-flavor seriesliquor).
Inventory Impairment Risk Warning
□Applicable √N/A
D. Product profile
√Applicable □N/A
Unit: CNY 10,000
| Product grade | Production (ton) | Change（%）Same Period | Sales (tons) | Change（%）Same period | Production-sales ratio (%) | Sales revenue | Change（%）same period | Main representing brand |
| Moutai | 56,810.44 | 0.60 | 37,901.39 | 4.52 | 10,783,368.53 | 15.37 | Moutai | |
| Other series liquor | 35,075.39 | 24.17 | 30,274.93 | 0.32 | 1,593,864.71 | 26.55 | Moutai Wangzi liquor, Moutai 1935 liquor, Han Jiang liquor, Lai Mao liquor |
Note: (1) In order to ensure the sustainable development of the Company, a certain amount of base liquorneeds to be retained every year. According to the production process, it takes Maotai liquor at least 5 yearsof cellaring since its production before in can be released from the factory. (2) Moutai is a blend of baseliquor of different years, different rounds and different concentrations. It is a perfect combination oftechnology and art. Therefore, the base liquor of a certain year may appear as a product in the next severalyears. (3) The Company regards quality as its life, adheres to quality first, adheres to the spirit ofcraftsmanship, and adheres to the principle of “honoring the principles, abiding by the rules, sticking tothe craftsmanship, cellaring enough liquor to age, and not selling young liquor”. The production of Moutaiis of natural solid-state fermentation, brewed with traditional craftsmanship, and therefore the productionyield has certain volatility. (4) Based on the above reasons, the production and sales rate of Moutai baseliquor cannot be accurately calculated. The product formation process of series liquor is similar to that ofMoutai.
Product grading standards
√Applicable □N/A
Graded by the quality of the product.
Changes in the product structure and business strategyE. Raw material purchasea. purchase model
√Applicable □N/A
Raw materials are mainly purchased from the market through centralized procurement according to theCompany’s production and sales plan.
b. purchase amount
√Applicable □N/A
Unit: CNY 10,000
| Raw materials type | Purchase amount in this period | Purchase amount in last period | as % in total purchase amount |
| Liquor brewing raw materials | 248,398.92 | 310,081.75 | 41.78 |
| Packaging materials | 290,243.05 | 282,811.20 | 48.82 |
| Energies | 48,982.94 | 35,258.15 | 8.24 |
| Workshop auxiliary materials | 6,898.38 | 6,042.04 | 1.16 |
F. Salesa. Sales model
√Applicable □N/A
The Company’s products are sold through direct selling and distributor channels. Direct sales channelsrefer to self-operated channels and "i Moutai" digital marketing platform channel, and wholesale agencychannels refer to social distributors, supermarkets, e-commerce and other channels.
b. Sales channel
√Applicable □N/A
Unit: CNY 10,000
| Channel type | Sales amount in this period | Sales amount in last period | Sales volume in this period (ton) | Sales volume in last period (ton) |
| Direct selling | 4,937,873.77 | 2,402,936.23 | 11,186.57 | 5,735.70 |
| Wholesale agency | 7,439,359.47 | 8,202,992.80 | 56,989.75 | 60,702.99 |
c. Regional situation
√Applicable □N/A
Unit: CNY 10,000
| Region Name | Sales revenue in this period | Sales revenue in last period | as % in the total amount | Sales volume in this period (ton) | Sales volume in last period (ton) | as % in the total volume |
| Domestic | 11,953,275.29 | 10,344,081.75 | 96.57 | 66,162.41 | 64,877.80 | 97.05 |
| Overseas | 423,957.95 | 261,847.28 | 3.43 | 2,013.91 | 1,560.89 | 2.95 |
Regional division standards
□Applicable √N/A
d. Distributor Situation
√Applicable □N/A
| Region Name | Number of distributors by the end of the reporting period | Number increased in the reporting period | Number decreased in the reporting period |
| Domestic | 2,084 | 5 |
| Overseas | 105 | 1 |
Explanation
□Applicable √N/A
Management of distributors
□Applicable √N/A
e. Online-sales situation
√Applicable □N/A
Unit: CNY 10,000
| Online sales platform | Product grade of online sales | Revenue from sales in the current period | Revenue from sales in the previous period | YoY (%) | Gross profit margin (%) |
| "I Moutai" digital marketing platform channel | Medium and high-grade liquor | 1,188,270.28 | N/A | 95.26 |
Note: The sales revenue of the "I Moutai" digital marketing platform channel is the excluding taxincome of liquor realized by the company through this platform.
Future online business strategy
□Applicable √N/A
G. Analysis of the Company’s revenue and costa. the composition of the company’s main business by different types
√Applicable □N/A
Unit: CNY
| Type | Operating revenue | Change（%） | Operating costs | Change（%） | Gross profit rate（%） | Change（%） |
| By class of product | ||||||
| Moutai | 107,833,685,277.94 | 15.37 | 6,265,810,909.88 | 12.33 | 94.19 | 0.16 |
| Other series liquor | 15,938,647,070.77 | 26.55 | 3,630,302,426.92 | 9.57 | 77.22 | 3.53 |
| Subtotal | 123,772,332,348.71 | 16.70 | 9,896,113,336.80 | 11.30 | 92.00 | 0.38 |
| by sales channel | ||||||
| Direct selling | 49,378,737,661.60 | 105.49 | 1,874,222,059.91 | 100.97 | 96.20 | 0.08 |
| Wholesale agency | 74,393,594,687.11 | -9.31 | 8,021,891,276.89 | 0.80 | 89.22 | -1.08 |
| Subtotal | 123,772,332,348.71 | 16.70 | 9,896,113,336.80 | 11.30 | 92.00 | 0.38 |
| By regional segment | ||||||
| Domestic | 119,532,752,861.59 | 15.56 | 9,558,682,149.59 | 10.51 | 92.00 | 0.36 |
| Overseas | 4,239,579,487.12 | 61.91 | 337,431,187.21 | 39.60 | 92.04 | 1.27 |
| Subtotal | 123,772,332,348.71 | 16.70 | 9,896,113,336.80 | 11.30 | 92.00 | 0.38 |
Explanation
□Applicable √N/A
b. Costs
√Applicable □N/A
Explanation
√Applicable □N/A
See Statement of Cost, Analysis of main business, Section III Management Discussion and Analysis.
5.5 Analysis of investment situation
Total investment
□Applicable √N/A
A. Significant equity investment
□Applicable √N/A
B. Important non-equity investment
√Applicable □N/A
Non raised fund projects (projects with total investment exceeding 10% of the Company’s audited netassets at the end of last year)
a. According to the resolution of the Company’s 2011 annual shareholders’ meeting, the Company hasplanned to invest CNY 3,583.16 million in the construction of Moutai-flavor series liquor makingtechnical transformation project and supporting facilities project. By the end of the reporting period, atotal of CNY 2,053.55 million had been invested.
b. According to the resolution of the annual general meeting of shareholders in 2021, the Companyadjusted the investment in the first-phase Moutai technical renovation project and supporting facilities inZhonghua Area. The total investment of the project was adjusted from CNY 4,139 million to CNY 4,846million. At the end of the reporting period, a total of CNY 4,832.15 million was invested. This projecthas been put into use.
C. Financial assets measured at fair value
□Applicable √N/A
4. Specific progress of major assets reorganization and integration during the reporting period
□Applicable √N/A
5.6 Analysis of major holding companies
√Applicable □N/A
Unit: CNY 10,000
| Company name | Industry | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Kweichow Moutai Sales Co., Ltd. | Liquor, beverages and tea wholesale | 1,000.00 | 8,298,572.89 | 4,564,802.05 | 10,360,419.48 | 4,841,748.16 | 3,626,162.73 |
5.7 Structured entities controlled by the Company
□Applicable √N/A
6. Discussion and analysis of the Company’s future development
6.1 Pattern and trend in the industry
√Applicable □N/A
Industry pattern and trend.
From a macro-economic perspective, the long-term positive fundamentals of China's economy remainsunchanged. The per capita disposable income of residents has continued to grow, and liquor consumptiondemand is likely to show an upward trend. In terms of industry development, the Company is facing a newsituation of industry development in which three phases are superimposed, including the period ofreshaping new order, the period of forming new pattern and the upgrading period of new consumption.The market consumption demand will be more concentrated in and inclined to advantageous production
areas, leading enterprises and excellent brands. Matthew effect is becoming more and more obvious in theindustry, and the overall development of the industry displays an upward trend.In terms of policy, in theperiod of reshaping new order, the requirements for industry access, standards, land, environmentalprotection and safety are more precise and standardized; from the perspective of the supply side, in theperiod of forming a new pattern, the origin, main producing areas and base producing areas will furtheroptimize the layout of liquor industry and accelerate the adjustment of the pattern of famous liquorenterprises versus small and medium-sized liquor enterprises; from the perspective of the demand side, inthe upgrading period of new consumption, the individual needs of the young people, the expansion ofconsumption scenarios and the higher pursuit of quality culture will drive liquor enterprises to acceleratetransformation and upgrading.
Competitive advantages of the Company
First, to pursue excellent quality at all times. The Company adheres to the principle that quality is the soulof life as well as the concept of "five-artisan quality", implements strict quality control throughout the lifecycle from "improved variety" to "products with aesthetic feeling". The Company vigorously maintainsthe ecological uniqueness of the balanced producing areas, and innovates and inherits the scientific processmethod and engineering method of selected materials, excellent process and exquisite utensils. Each batchof products uses the long-term cellaring base resources and the diversified base liquor styles created byexquisite blending techniques to form the typical flavor and quality expression characteristics ofKweichow Moutai. The Company strove for excellence and refinement in the 30 processes and 165 links,and created the excellent quality integrating aesthetic senses, aesthetic perception, aesthetic feelings, andbeauty aesthetic.
Second, to strive for building a first-class brand. After hundreds of years, Moutai has grown from a localproduct that nobody cares about in 1915 to the world's first brand of hard liquor with the single productrevenue of CNY over 100 billion and a market value of over CNY one trillion. The Company strove tobuild a brand matrix with the Party building brand as the guide. It constantly made the brand as a brandwith products with aesthetic feeling, optimized services, real public welfare, refined activity, andoutstanding craftsmanship, continuously enhanced the kinetic energy of the brand, highlighted the brandtension of Moutai, greatly enhancing the brand influence and reputation, and constantly increasing thebrand value. From 2016 to 2022, the brand value of Moutai ranked first in the list of "Top 50 MostValuable Spirits Brands in the World" published by Brand Finance for seven consecutive years.
Third, to deeply explore the cultural connotation. Moutai culture is derived from the farming civilizationthat "Pu people are good at brewing". It developed continuously in modern civilization. A “nine series”cultural system was perfected and formed, leading the development trend of China liquor culture, whichbecame the acme of Chinese liquor culture The Company took the brewing tradition of "co-brewing byman and nature" and the craftsman spirit of pursuing excellence as the core, and fully combined theseasonal rhythm to carry out a series of activities of 24 solar terms, highlighting the cultural characteristicsof "obedience to the heaven and respect to the man" and expanding and enriching the cultural extensionof Moutai. It built a communication matrix of “Mass response online and offline", told a good brand story,spread the voice of Moutai, and made the unique Moutai culture sparkling.
Fourth, innovated and inherited traditional processes. The Company has a unique brewing process that hasbeen passed down for thousands of years, insisting on the brewing of Moutai according to the weatherchanges and making the brewing more traditional. The Company has comprehensively established aquality evaluation system for raw materials of brewing, ensuring the high-quality supply of sorghum andwheat from the aspects of origin and quality indicators, and highlighting the "selected materials"; followedthe traditional process of taking a year as one production cycle, stepping on the winter wheat during theDragon Boat Festival, feeding on the Double Ninth Festival, brewing with pure grain, solid fermentationin an open manner, long-term storage in pottery jars, and blending liquor with liquor to display "excellentprocess"; adhere to the supply of traditional elements, such as drying hall of concrete, fermentationwarehouse made with small green tile, pit stone and purple mud, to show the "exquisite utensils"; Adhereto both inheritance and innovation, and make innovation more modern. The Company continued toenhance the original innovation ability, deeply analyze the scientific connotation of traditional techniques,
and conclude the process system of yeast-making, liquor-making, storage and blending, and establishefive core technical systems to keep the vitality of traditional process methods forever.
Fifth, to continue to construct a beautiful ecology. Special landform, climate environment, high-qualitybrewing water source, unique origin protection and unrepeatable microbial colonies are the uniquecharacteristics of the core producing area of Kweichow Moutai liquor with the area of 15.03 squarekilometers. By implementing the "five special projects" of increasing high-quality water resources,improving air quality, conservation of water and soil, protecting microorganism and maintainingecosystem balance, the Company carried out the "five special actions" of energy saving, carbon reductionand efficiency improvement, green product design, green transformation of industrial chain, greenscientific and technological innovation and green low-carbon life, and built a life community of “mountain,water, forest, soil, river and microorganism” to fully maintain the ecosystem balance on which Moutaidepends.
In the production and operation, the Company also extended the maintenance of natural ecology tocommercial ecology, and guided relevant parties to form a tough, agile and efficient production, supplyand marketing ecosystem with excellent "Moutai standards" to jointly pursue the goal of specialization,greening and digitalization of modernization.
6.2 Development strategy
√Applicable □N/A
In 2023, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a NewEra, the Company will thoroughly studying and implementing the spirit of the 20th National Congress ofthe Communist Party of China and the important speech addressed by the General Secretary Xi Jinpingduring the inspection in Guizhou, focusing on the strategic goal of "double doubling, double consolidationand double building" of the group company, adhering to the overall high-quality development, upholdingthe concept of "quality is the soul of life", continuing to take the "five-line" high-quality development roadwith Moutai aesthetics as its value connotation, attaching importance to the main business of "liquor" andstrengthening the strategic coordination, promoting work coordination and fully advance the high-qualitydevelopment and modernization of Moutai.
6.3 Business plan
√Applicable □N/A
2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Partyof China, and it is also a crucial year for the 14th Five-Year Plan. We will adhere to the general tone ofstriving for progress while maintaining stability, take the overall situation as a whole with high-qualitydevelopment, closely follow the strategic goal of "dual-doubling, dual-consolidating and dual-construction" of the group company, aim at the annual objectives and tasks, and make every effort to do agood job in production, operation and reform and development. The business objectives in this year are asfollow: first, the total operating revenue will increase by about 15.00% compared with the previous year;and the second is to complete the capital construction investment amounting to CNY 7.109 billion. TheBoard of Directors will focus on the annual objectives and tasks, make overall plans, and do a good jobthe following key tasks:
To insist on corporate governance. First, to strengthen the leadership of Party building. To adhere to theway of leading high-quality development with high-quality party building, unswervingly focus on partybuilding and the promotion of integration, continuously enhance the political and organizational functionsof grassroots party organizations, and promote the deep integration of party building with production andoperation; do a good job in the cultivation of professional talents and improvement in professional ability,as well as cultivating a team of cadre talents possessing political consciousness and the ability ofmodernization and satisfying the needs for development; focus on risk points in nine major areas,continuously improve preventive measures, and consolidate the political ecology and developmentenvironment of "liquor aroma, healthy atmosphere and harmonious relationship". Second, tocomprehensively improve modern corporate governance level. To insist on the benchmarking with theworld's first-class, keep up with international advanced level, carry out in-depth study of modernmanagement experience and practices, keep consolidating the achievements of state-owned enterprise
reform, and constantly make up management shortcomings; fully implement the requirements of "fiveadherences” for the construction of law-based Moutai, and continuously improve the legalization level ofenterprise and compliance operation.
To continue to do a good job in production and operation. First, to make every effort to ensure stableproduction with high quality, continue to practice the "five artisans" quality concept, persist in improvingthe "365" quality management system, optimize quality evaluation indicators, strengthen productionscheduling supervision and process control, and spare no effort to ensure the steady progress of base liquorproduction. Second, to do a good job in marketing, thoroughly implement the "five-integration marketinglaw", focus on the requirements of "six-limitation", center on making fine products, make every effort tobuild core products, continuously optimize product structure and reshape product development pattern;insist on expanding the market, continue to deepen the domestic market, accelerate the expansion of theinternational market; firmly adhere to the way of strengthening channels, improve the management ofcirculation channels, speed up the construction of terminal channels and increase the efforts in thedevelopment of online channels; continue to provide excellent services, effectively standardize servicesand handle appeals in a quick manner. At the same time, the Company will develop the classic models ofMoutai ice cream, increase the efforts in the research and development of new products, enrich the flavordiversity of products, innovate and develop products which the young people love, and further broadenthe product range.
To insist on consolidating the foundation. First, to aim at the target of reaching annual investments, payclose attention to quality, cost and progress, firmly promote the capacity expansion of Moutai during the14th Five-Year Plan, packaging logistics park and the first phase of Xishui Tongminba as well as othernew projects, do the preparatory work for the proposed and reserved projects, and further consolidate thefoundation of industrial development. Second, to continue to optimize the system and mechanism forscientific and technological innovation, enhance the ability of independent innovation, promote the deepindustry-university-research cooperation, vigorously promote the orderly development of scientificresearch projects, accelerate the transformation of scientific research achievements, and provide strongtechnical and intellectual support for high-quality development. Third, to accelerate the construction ofsmart Moutai, vigorously implement digital empowerment, comprehensively promote the construction ofsmart industrial chain, smart park and industrial Internet, promote the formation of industrial Internetplatform, further cultivate new kinetic energy for development, and push digital transformation to a newlevel.
To build the bottom line of safety and environmental protection. To further improve the management andcontrol system for safety and environmental protection, implement the responsibility of safe productionand green development, optimize the systems for comprehensive management safety, emergency support,green and low carbon, pollution prevention and control at all levels, and improve the overall safety leveland green development capability. First, to focus on the overall goal of "one base and one benchmark",make great efforts to promote five special projects of "increasing high-quality water resources, improvingair quality, conservation of water and soil, protecting microorganism and maintaining ecosystem balance",and continue to carry out five special actions of "saving energy, reducing carbon and increasing efficiency,designing green products, green transformation of industrial chain, green technological innovation, andgreen low-carbon life", build China's ecological wetland with high standards and other projects, spare noeffort to create a national "two mountains" base, strive for a national cleaner production class-I enterprise,optimize and improve the cleaner production evaluation index system for liquor (Moutai-flavor)manufacturing industry, and continuously build a green and low-carbon recycling industry system. Second,to strengthen comprehensive risk management, continue to do a good job in the management of food safetyrisks, compliance risks, environmental risks, etc., further promote safe production, and well perform theinvestigation and management of hidden dangers in terms of fire, electricity, soil, housing, water andvehicles, as well as fire protection, electrical equipment, aircraft operation, ground logistics and otherfields in the storage area, and further build a bottom line for high-quality development.
To continue to do a good job in brand building. First, to adhere to the construction of the "Nine Series"Moutai culture, continue to write articles on the "Twenty-four Solar Terms", organize cultural activitiessuch as the Spring Equinox Forum, Tomb-sweeping Thanksgiving, and Grain Rain Talent Day to create aunique cultural card for the 24 solar terms. Continue to hold well the activities special activities such as
entering the four major academies, Moutai Fans Festival, Moutai Fans Carnival, "Happy Meeting Moutai1935" and "Seeking the Source of Chinese Culture and Asking for Chinese Sauce-flavor", and makeexcellent cultural works and literary and artistic works such as movies, music and dances, so as to createa cultural activity matrix with Moutai characteristics. Second, to positively fulfill social responsibilities.To continue to deepen the brand of public welfare activities such as "Chinese Moutai, Pillar of theCountry" and "Moutai Prince - Bright Youth", expand the carriers of public welfare cultural activities,create the brand IP of Moutai public welfare, and enhance the corporate brand image; improve the abilityof industry to promote rural revitalization and local economic development.
6.4 Possible confronting risk
√Applicable □N/A
First, brand and reputation management risks; Second, the risks of environmental protection; Third, therisks of public opinion; Fourth, security risks; fifth, investment risks.
6.5 Others
□Applicable √N/A
7. The Company’s failure to disclose the information and reasons in accordance with the standardsdue to non-application of the standards or special reasons such as state secrets and trade secrets
□Applicable √N/A
Section IV Corporate Governance
1. Description of the related situation of corporate governance
√Applicable □N/A
In strict accordance with the Company Law, the Securities Law, the Code of Corporate Governance forListed Companies and other laws and regulations and the requirements of regulatory documents related tocorporate governance, the Company has established and improved the corporate governance structure incombination with the actual situation of the Company, actively promoted the optimization of the corporategovernance structure and standardized the Company's operation. The Company has the party committee,the general meeting of shareholders, the board of directors, the board of supervisors and the management.It implements the leadership system of "two-way entry and cross-service" for members of party committeeand governance institutions, thus forming a corporate governance system with their own responsibilities,coordinated operation and effective checks and balances. The Company continued to optimize thegovernance mechanism, giving full play to the role of the general meeting of shareholders as theCompany's authority, the role of the Party Committee in direction control, overall situation managementand implementation promotion, the board of directors in decision-making and risk prevention as well asthe role of the role of the management in operation management and strong management, andstrengthening the supervision function of the board of supervisors.
General meeting of shareholders. In accordance with the requirements of the Articles of Association andthe Rules of Procedure of the General Meeting of Shareholders of the Company, the Company convenedgeneral meetings of shareholders in a standardized manner to ensure that all shareholders, especially smalland medium shareholders, may enjoy equal status and can fully exercise their rights, and hired legaladvisers to issue legal opinions for the general meeting of shareholders. In 2022, the Company held twogeneral meetings of shareholders, deliberated and approved 18 proposals, and all resolutions had beenseriously implemented.
Board of Directors. At present, the Board of Directors of the Company consists of seven directors,including three independent directors and one employee director. The composition of the Board ofDirectors meets the requirements of laws and regulations. The Board of Directors of the Company has fivespecial committees, namely, Strategy Committee, Audit Committee, Risk Management Committee,Nomination Committee, Remuneration and Appraisal Committee, with clear division of labor, clear
responsibilities and effective operation. All directors of the Company can perform their duties in goodfaith, loyalty, diligence, professionalism and due diligence from the interests of the Company and allshareholders, and earnestly safeguard the legitimate rights and interests of the Company and allshareholders.
Board of Supervisors. At present, the Board of Supervisors of the Company is composed of threesupervisors, one of whom is an employee supervisor. The composition of the Board of Supervisors meetsthe requirements of laws and regulations. The Board of Supervisors of the Company can be diligent andresponsible, exercise the function of supervision and inspection in the spirit of being responsible toshareholders, supervise the Company's financial status and operation, related transactions and theperformance of duties by senior executives, and safeguard the legitimate rights and interests of theCompany and all shareholders.
Situation of the work of the management. The management of the Company carried out daily productionand operation matters according to the statutory authority and the authorization of the board of directors,and it was responsible for organizing and implementing the resolutions of the board of directors, andreporting the same to the board of directors. In 2022, production and operation, reform and developmentwere successfully completed, and the role of operation, implementation and management workedeffectively.
Information on controlling shareholders and listed companies. Controlling shareholders shall exercise therights and assume the obligations of the investor in strict accordance with the requirements of the CompanyLaw. The Company has independent business and self-management ability. The controlling shareholdersand the listed companies are independent in business, personnel, assets, institutions and finance. The Boardof Directors, the Board of Supervisors and internal institutions of the Company operate independently,ensuring that major decisions of the Company would be made and implemented independently by theCompany.
Information disclosure of the Company. The Company shall disclose relevant information in a true,accurate, complete, timely and fair manner in strict accordance with laws, regulations, Articles ofAssociation and the Administrative Measures of the Company for Information Disclosure, and ensure thatall shareholders and other stakeholders would have equal access to company information. During thereporting period, the Company disclosed 35 temporary announcements and 4 regular reports. Aftercomprehensive evaluation by Shanghai Stock Exchange, the evaluation result of the Company'sinformation disclosure from 2021 to 2022 is A(Excellent).
Related transactions. There are related transactions between the Company and its controlling shareholder,China Kweichow Moutai Distillery (Group) Co., Ltd. and other related parties. These related transactionsare carried out to ensure the normal production, operation and business development of the Company. Thespecific contents were regulated through relevant agreements. The legal procedures are fulfilled, and theprinciples of openness, fairness and impartiality were followed. Hence, there is no adverse impact on theoperation of the Company.
Construction of internal control. During the reporting period, the Company continued to carry out internalcontrol related work in accordance with the requirements of the Basic Rules for Enterprise InternalControl, and kept promoting internal control construction, evaluation, auditing and other related work toensure the realization of the Company's internal control objectives and further improve the corporategovernance level.
Whether there are significant differences between corporate governance and laws, administrativeregulations and the CSRC regulations on the governance of listed companies; if there are any majordifferences, the reasons shall be explained
□Applicable √N/A
2. The specific measures taken by the controlling shareholders and actual controllers of the companyto ensure the independence of the company's assets, personnel, finance, institutions and business, aswell as the solutions, work progress and follow-up work plans that affect the independence of thecompany work progress and follow-up work plans that affect the independence of the company
□Applicable √N/A
The situation of the controlling shareholders, actual controllers and other units under their control engagedin the same or similar business as the company, as well as the impact of great changes in the industrycompetition or competition on the Company, the solution measures taken, solution progress andsubsequent solution plans
□Applicable √N/A
3. Introduction of shareholders’ Meeting
| Session of the meeting | Date of convening | Query index of the designated website published in the resolution | Date of disclosure of the publication of the resolution | Meeting resolution |
| the annual general meeting in 2021 | 2022-06-16 | The Shanghai Stock Exchange www.sse.com.cn | 2022-06-17 | Please refer to the Announcement on Resolution of 2021 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2022-014) for details. |
| The first extraordinary general meeting of shareholders in 2022 | 2022-12-14 | The Shanghai Stock Exchange www.sse.com.cn | 2022-12-15 | Please refer to the Announcement on Resolution of the First Extraordinary General Meeting of Shareholders of Kweichow Moutai in 2022 (Announcement No.: Lin 2022-031) for details. |
Preferred shareholders with restored voting rights request an extraordinary general meeting ofshareholders
□Applicable √N/A
Description of the shareholders’ general meeting
□Applicable √N/A
4. Situation of directors, supervisors and senior officers
4.1 Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period
√Applicable □N/A
Unit: per share
| Full Name | Position (note) | Gender | Age | Start Date of Term | Termination date of term | Number of shares held at the beginning of the year | Number of shares held at the end of the year | The increase or decrease of shares within the year | Cause of The increase or decrease of shares | Total pre-tax remuneration obtained from the Company during the reporting period (ten thousand CNY) | Whether to get paid from the related parties of the company |
| Ding Xiongjun | Secretary of the party committee | Male | 48 | October 06, 2022 | Yes | ||||||
| Chairman, director | September 24, 2021 | ||||||||||
| Li Jingren | Deputy Secretary of the party committee | Male | 58 | November 06, 2022 | Yes | ||||||
| Director | November 28, 2018 | ||||||||||
| Acting general manager responsibilities | July 02, 2019 | ||||||||||
| Jiang Guohua | Independent director | Male | 51 | June 16, 2022 | 10.88 | No | |||||
| Guo Tianyong | Independent director | Male | 54 | June 16, 2022 | 10.88 | No | |||||
| Sheng Leiming | Independent director | Male | 52 | June 16, 2022 | 10.88 | No | |||||
| Liu Shizhong | Director | Male | 47 | June 16, 2022 | Yes |
| Xie Qinqing | Employee director | Female | 40 | October 07, 2022 | 77.99 | No | |||||
| You Yalin | Deputy Secretary of the party committee, chairman of the Trade Union of the party committee | Male | 53 | November 03, 2022 | 93.63 | No | |||||
| Chairman and supervisor of the Board of Supervisors | March 20, 2020 | ||||||||||
| Che Xingyu | Supervisor | Male | 55 | June 10, 2020 | 72.50 | No | |||||
| Liu Chenglong | Staff supervisor | Male | 45 | June 10, 2020 | 79.44 | No | |||||
| Zhong Zhengqiang | Member of the party committee | Male | 51 | November 03, 2022 | 119.21 | No | |||||
| vice-general manager | July 13, 2015 | ||||||||||
| Tu Huabin | Member of the party committee | Male | 47 | November 03, 2022 | 93.78 | No | |||||
| vice-general manager | February 27, 2020 | ||||||||||
| Wang Xiaowei | Member of the party committee | Male | 51 | November 03, 2022 | 93.27 | No | |||||
| vice-general manager | February 27, 2020 | ||||||||||
| Jiang Yan | Member of the party committee | Female | 45 | November 03, 2022 | 53.34 | No | |||||
| Deputy General Manager and Chief Financial Officer | November 15, 2021 |
| Secretary of the Board | January 25, 2022 | ||||||||||
| Lu Jinhai | Independent director | Male | 52 | May 18, 2016 | June 16, 2022 | 9.18 | No | ||||
| Xu Dingbo | Independent director | Male | 59 | September 20, 2016 | September 22, 2022 | 14.57 | No | ||||
| Zhang Jingzhong | Independent director | Male | 59 | September 20, 2016 | September 22, 2022 | 14.57 | No | ||||
| Fu Zhigang | Employee director | Male | 44 | March 20, 2020 | October 07, 2022 | Yes | |||||
| Total | / | / | / | / | / | / | 754.12 | / |
Note: 1. According to the relevant regulations of Guizhou State-owned Assets Supervision and Administration Commission, the annual salary of enterprise leaders iscomposed of basic annual salary, performance-based annual salary and term incentive. In principle, they do not enjoy other salary expenses except the three parts,such as subsidies.2. The pre-tax remuneration received from the Company during the reporting period includes the tenure incentive for the period from 2018 to 2020.
| Full Name | Main work experience |
| Ding Xiongjun | He served as deputy Secretary General of Guizhou Provincial Government and member of the Party Leadership Group of The General Office of Guizhou Provincial Government, Deputy Director of the Office of the Leading Group for Comprehensively Deepening Reform of Guizhou Provincial Party Committee, Standing Committee member and Vice Mayor of Bijie Municipal Committee of Guizhou Province (in charge of the executive work of the municipal Government), and Secretary of the Party Leadership Group and Director of Guizhou Energy Bureau. Currently, he is the Secretary of the party committee, Chairman and director of China Kweichow Moutai Distilley (Group) Co., Ltd., Secretary of the party committee, Chairman and director of Kweichow Moutai Co., Ltd., and Chairman and director of Moutai Institute. |
| Li Jingren | He served as a member of the Party Group and chief accountant of Guizhou Reservoir and Ecological Immigration Bureau, a member of the Party Group and deputy Director of Guizhou Reservoir and Ecological Immigration Bureau, the chief accountant of China Kweichow Moutai Distillery (Group) Co., Ltd.. Currently, he is deputy Secretary of the party committee, deputy Chairman, Director and General Manager of China Kweichow Moutai Distillery (Group) Co., LTD, deputy Secretary of the party committee, director and acting General Manager of Kweichow Moutai Co., Ltd. |
| Jiang Guohua | He served as a part-time member of the 17th Issuance Examination Commission of China Securities Regulatory Commission, a senior investment consultant of Bosera Funds, a global valuation consultant of KPMG, a member of the Global Agenda Council of the World Economic Forum, an independent director of CITIC Trust Co., Ltd., an independent director of Datang International Power Generation Co., Ltd. and an independent director of Zhongrong Fund Management Co., Ltd. Currently serves as a professor of accounting at Guanghua School of Management, Peking University, distinguished professor of Boya Plan in Peking University, distinguished professor of Changjiang scholar of the Ministry of Education, executive vice president of Graduate School of Peking University, and independent director of Bank of China Limited, China Merchants Life Insurance Co., Ltd.,and Kweichow Moutai Co., Ltd. |
| Guo Tianyong | He worked in Yantai Branch of China People's Bank; currently serves as a professor and doctoral supervisor at the School of Finance of the Central University of Finance and Economics, and an Independent non executive director of PING AN HEALTH CLOUD COMPANY LIMITED and |
| independent director Kweichow Moutai Co., Ltd. | |
| Sheng Leiming | He served as a senior partner lawyer and director of Shanghai Zhongmao Law Firm. Currently serve as a Chairman of the Partnership Meeting of Beijing Guantao Zhongmao Law Firm, senior partner lawyer of Beijing Guantao Zhongmao (Shanghai) Law Firm, and independent director of Shanghai Zhenhua Heavy Industries Co., Ltd., Tsingtao Brewery Co., Ltd., Shanghai Foreign Service Holding Group Co., Ltd. and Kweichow Moutai Co., Ltd. |
| Liu Shizhong | Served as the division chief of the Department of Legal Intellectual Property Protection of China Kweichow Moutai Distillery (Group) Co., Ltd., and director of the Department of Legal Intellectual Property Protection of Kweichow Moutai Co., Ltd. Currently serve as the Party secretary and chairman of the Board of Directors of Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd., chairman of the Board of Directors of Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd., and director of Kweichow Moutai Co., Ltd. |
| Xie Qinqing | He served as the member of the party committee, secretary of the Disciplinary Committee and chairman of the Board of Supervisors of Kweichow Moutai-Flavor Liquor Marketing Co., Ltd., and deputy secretary, director and chairman of the Trade Union of Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. Currently serve as director of Enterprise Management Department of China Kweichow Moutai Distillery (Group) Co., Ltd., and employee director and director of the Enterprise Development Department of Kweichow Moutai Co., Ltd. |
| You Yalin | He served as an assistant to the General Manager, director of the party committee Office, secretary of the party committee, director of the National Security Office, director of the Confidentiality Office, and director of the Petition Office of China Kweichow Moutai Distillery (Group) Co., Ltd. Currently serve as the deputy secretary of the party committee, chairman of the Board of Supervisors, supervisor and chairman of the Trade Union of the party committee of Kweichow Moutai Co., Ltd. |
| Che Xingyu | He served as the director of the Enterprise Management Department of Kweichow Moutai Co., Ltd., member of the Leading Group for Continuing the Reform Comprehensively of China Kweichow Moutai Distillery (Group) Co., Ltd., chairman of the Board of Full-time Supervisors of the Management Office of the Board of Supervisors of subsidiaries, Director of the Life Service Guarantee Center and Deputy Secretary of the Party Committee of China Kweichow Moutai Distillery (Group) Co., Ltd. Currently serves as the supervisor and the director of the Life Service Guarantee Center of Kweichow Moutai Co., Ltd. |
| Liu Chenglong | He served as the director of the Department of Legal Intellectual Property Protection, director of the Department of Human Resources and Social Security and Vice President of Party School of Party Committee (Staff Training School) of China Kweichow Moutai Distillery (Group) Co., Ltd. and the director of the Department of Legal Intellectual Property Protection of Kweichow Moutai Co., Ltd. Currently serves as the employee supervisor and director of the Department of Organization, Human Resources and Social Security of Kweichow Moutai Co., Ltd. |
| Zhong Zhengqiang | He served as director and Deputy Secretary of Workshop 13 of Kweichow Moutai Co., Ltd.; Assistant General Manager and Director of Production Management Department. Currently serves as a member of the party committee and deputy General Manager of Kweichow Moutai Co., Ltd. |
| Tu Huabin | He served as an Assistant General Manager of Kweichow Moutai Co., LTD., director of production management department, new workshop preparation group leader, party branch secretary of production, assistant General Manager of China Kweichow Moutai (Group) distillery Co., Ltd., deputy party secretary, deputy chairman, General Manager of Kweichow Moutai Distillery (Group) Xijiu Co., Ltd., and General Manager of Kweichow Moutai Co., Ltd. Heyixing Liquor Branch. Currently serves as a member of the party committee and deputy general manager of Kweichow Moutai Co., Ltd. |
| Wang Xiaowei | He served as the deputy secretary of the Party branch and deputy director of the 4 Workshop of Kweichow Moutai Co., Ltd., the secretary of the Party branch and deputy director of the 23 Workshop of Kweichow Moutai Co., Ltd., and the secretary of the Party branch and deputy director of the |
| 25 Workshop of Kweichow Moutai Co., Ltd. Currently serves as a member of the party committee and Deputy General Manager of Kweichow Moutai Co., Ltd. and concurrently serves as the Party Secretary and Chairman of the Board of Directors of Kweichow Moutai Sales Co., Ltd. | |
| Jiang Yan | She served as the chairman of the board of directors and general manager of Moutai(Guizhou) Investment Management Co., Ltd. , the chairman of the board of directors and the secretary of Party Branch of Moutai Financial Leasing Co., Ltd, and the deputy chairman of the board of directors of Guiyang GY Financial Leasing Co., Ltd. Currently serves a s a member of the Party Committee, deputy general manager, chief Accountant and secretary of the Board of Directors of Kweichow Moutai Co., Ltd., the secretary of the Party branch and chairman of the Board of Directors of Kweichow Moutai Group Finance Co., Ltd. |
Other information
□Applicable √N/A
4.2 The current and outgoing directors, supervisors and senior management personnel during thereporting periodA. Appointment in shareholder entity
√Applicable □N/A
| Name of incumbent | Name of shareholder units | Positions held in shareholder units | Start date of term of service | End date of term of service |
| Ding Xiongjun | China Kweichow Moutai Distillery (Group) Co., Ltd. | Party secretary, chairman and director | August 2021 | |
| Li Jingren | China Kweichow Moutai Distillery (Group) Co., Ltd. | Deputy Party Secretary, Vice Chairman and General Manager | July 2019 | |
| Director | October 2018 | |||
| Xie Qinqing | China Kweichow Moutai Distillery (Group) Co., Ltd. | Director of the Enterprise Management Department | December 2021 | |
| Che Xingyu | China Kweichow Moutai Distillery (Group) Co., Ltd. | Deputy Secretary of Party Committee and Director of Life Service Guarantee Center | December 2020 | November 2022 |
| Liu Chenglong | China Kweichow Moutai Distillery (Group) Co., Ltd. | Director of Human Resources and Social Security Department, Vice President of Party School of Party Committee (Staff Training School) | February 2020 | November 2022 |
B. Appointment in other units
√Applicable □N/A
| Name of incumbent | Name of other units | Positions held in other units | Start date of term of service | End date of term of service |
| Ding Xiongjun | Moutai Institute | Chairman of the Board of Directors, director | March 2022 | |
| Jiang Guohua | Peking University | Executive vice president of Graduate School, Professor of accounting at Guanghua School of Management | April 2020 | |
| BANK OF CHINA LIMITED | Independent director | December 2018 | ||
| China Merchants Life Insurance Company Limited | Independent director | September 2017 | ||
| Guo Tianyong | Central University of Finance and Economics | Professor and |
| doctoral supervisor at the School of Finance | ||||
| PING AN HEALTH CLOUD COMPANY LIMITED | Independent non executive director | May 2018 | ||
| AA Industrial Belting ( Shanghai ) Co., Ltd | Independent director | October 2018 | June 2022 | |
| Sheng Leiming | Beijing Guantao Zhongmao Law Firm | lawyer | April 2016 | |
| Shanghai Zhenhua Port Machinery Company Limited | Independent director | June 2019 | ||
| Tsingtao Brewery Co.,Ltd | Independent director | June 2020 | ||
| Shanghai Foreign Service (Group) Co.,Ltd. | Independent director | September 2021 | ||
| Shanghai United Imaging Healthcare Co., Ltd. | Independent director | November 2020 | ||
| Liu Shizhong | Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Chairman of the Board, director | May 2020 | |
| Guiyang Business Co., Ltd. | Chairman of the Board, director | May 2020 | ||
| Liu Chenglong | Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Director | December 2015 | January 2023 |
| Kweichow Moutai Group Finance Co., Ltd. | Director | December 2018 | November 2022 | |
| Jiang Yan | Moutai (Guizhou) Investment Management Co., Ltd. | Chairman of the Board | December 2017 | August 2022 |
| Moutai Financial Leasing Co., Ltd | Secretary of the Party Branch | December 2017 |
4.3 Remuneration of directors, supervisors and senior management personnel
√Applicable □N/A
| Decision-making procedure of the remuneration of directors, supervisors and senior executives | The annual assessment criteria for the chairman of the board of directors, vice chairman, deputy general manager and chairman of the board of supervisors shall be organized by the provincial SASAC in accordance with relevant regulations, and comprehensively determined in combination with the Company's annual operating conditions and performance appraisal results. Those for employee directors and supervisors are comprehensively determined according to the Company's salary management system and the results of personal performance appraisal. The decision-making procedures of independent directors shall be implemented in accordance with the relevant regulations of the board of directors. |
| Basis for determining the remuneration of directors, supervisors | Determined by the Administrative Measures for the Remuneration of the Person in Charge of the Enterprises Supervised by State-owned Assets Supervision and Administration Commission of Guizhou Province, the |
| and senior managers | Measures for Assessing the Operating Performance of the Persons in Charge of the Enterprises Supervised by State-owned Assets Supervision and Administration Commission of Guizhou Province, the Operational Guidelines for the Promotion of Tenure System and Contract-based Management for the Member of the Management in the Enterprises Supervised by State-owned Assets Supervision and Administration Commission of Guizhou Province (for Trial Implementation), and the Administrative Measures for the Performance Appraisal of the Members of the Management, the Administrative Measures for the Renumeration of the Members of the Management and the Measures for the Implementation of Salary Management of the Company and other systems, and the basis for determining the renumeration of independent directors shall be implemented in accordance with the relevant provisions of the board of directors. |
| Actual payment of remuneration of directors, supervisors and senior management personnel | For details, please refer to “Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period” in this report. |
| Total actual remuneration received by all directors, supervisors and senior management personnel at the end of the reporting period | For details, please refer to “Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period” in this report. |
4.4 Changes in directors, supervisors and senior management personnel of the company
√Applicable □N/A
| Name | Position | Situation of change | Reasons of change |
| Jiang Guohua | Independent director | Elected | Election of Shareholders Meeting. Please refer to the Announcement on Resolution of 2021 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2022-014) disclosed on June 17, 2022 for details. |
| Guo Tianyong | Independent director | Elected | Election of Shareholders Meeting. Please refer to the Announcement on Resolution of 2021 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2022-014) disclosed on June 17, 2022 for details. |
| Sheng Leiming | Independent director | Elected | Election of Shareholders Meeting. Please refer to the Announcement on Resolution of 2021 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2022-014) disclosed on June 17, 2022 for details. |
| Liu Shizhong | Director | Elected | Election of Shareholders Meeting. Please refer to the Announcement on Resolution of 2021 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2022-014) disclosed on June 17, 2022 for details. |
| Xie Qinqing | Employee director | Elected | Employee representative election. Please refer to the Announcement of Kweichow Moutai on the Election Results of Employee Directors (Announcement No.: Lin 2022-019) disclosed on October 11, 2022 for details. |
| Lu Jinhai | Independent | Left post | Resolutions of the Shareholders Meeting. Please refer to the |
| director | Announcement on Resolution of 2021 Annual General Meeting of Shareholders of Kweichow Moutai (Announcement No.: Lin 2022-014) disclosed on June 17, 2022 for details. | ||
| Xu Dingbo | Independent director | Left post | Resign. Please refer to the Announcement of Kweichow Moutai on Resignation of Independent Directors (Announcement No.: Lin 2022-018) disclosed on September 24, 2022. |
| Zhang Jingzhong | Independent director | Left post. | Resign. Please refer to the Announcement of Kweichow Moutai on Resignation of Independent Directors (Announcement No.: Lin 2022-018) disclosed on September 24, 2022. |
| Fu Zhigang | Employee director | Left post. | Left post. Please refer to the Announcement of Kweichow Moutai on the Election Results of Employee Directors (Announcement No.: Lin 2022-019) disclosed on October 11, 2022 for details. |
4.5 Explanation of punishment by securities regulatory agencies in recent three years
□Applicable √N/A
4.6 Others
□Applicable √N/A
5. Board meetings during reporting period
| Session of the meeting | Date of convening | Meeting resolution |
| The first annual meeting of the third Board of Directors in 2022 | January 25, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the First Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-002) disclosed on January 27, 2022 for details. |
| The second meeting of the third Board of Directors in 2022 | March 29, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Second Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-005) disclosed on March 31, 2022 for details. |
| The third meeting of the third Board of Directors in 2022 | April 25, 2022 | The meeting deliberated and approved the Report for the First Quarter of 2022. |
| The fourth meeting of the third Board of Directors in 2022 | May 26, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Fourth Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-011) disclosed on May 27, 2022 for details. |
| The fifth meeting of the third Board of Directors in 2022 | June 14, 2022 | The meeting deliberated and approved the Proposal on Formulating the Development Plan for the Fourteenth Five Year Plan, the Proposal on Formulating the Administrative Measures for the Selection and Appointment of Members of the Management, the Proposal on Formulating the Administrative Measures for the Performance Appraisal of Members of the Management and the Proposal on Formulating the Administrative Measures for Guarantee as well as the Proposal on Formulating the One Agreement and Two Liability Statements for the Members of the Management. |
| The sixth meeting of the third Board | August 01, 2022 | The meeting deliberated and approved the Semi-annual Report of Kweichow Moutai in 2022. |
| of Directors in 2022 | ||
| The seventh meeting of the third Board of Directors in 2022 | September 08, 2022 | The meeting deliberated and approved the Proposal on Purchasing the Right to Use the State-owned Construction Land in Plot C and D of Zhuwangtuo in Yantan Community, Maotai Town |
| The eighth meeting of the third Board of Directors in 2022 | September 09, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Eighth Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-017) disclosed on September 10, 2022 for details. |
| The ninth meeting of the third Board of Directors in 2022 | October 08, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Ninth Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-021) disclosed on October 17, 2022 for details. |
| The Tenth meeting of the third Board of Directors in 2022 | October 14, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Tenth Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-022) disclosed on October 17, 2022 for details. |
| The eleventh meeting of the third Board of Directors in 2022 | November 08, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Eleventh Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-023) disclosed on November 9, 2022 for details. |
| The twelfth meeting of the third Board of Directors in 2022 | November 28, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Twelfth Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-025) disclosed on November 29, 2022 for details. |
| The thirteenth meeting of the third Board of Directors in 2022 | December 14, 2022 | Please refer to the Announcement of Kweichow Moutai on the Resolution of the Thirteenth Meeting of the Third Board of Directors in 2022 (Announcement No.: Lin 2022-032) disclosed on December 15, 2022 for details. |
| The fourteenth meeting of the third Board of Directors in 2022 | December 31, 2022 | The meeting deliberated and approved the Company Organizational Setting Scheme of the Company. |
6. Performance of duties by the directors
6.1The directors attend the board of directors and the general meeting of shareholders
| director surname and personal name | Whether an independent director | Participation in the Board of Directors | Joining the shareholders’ general meeting | |||||
| Number of board attendance this year | Number of in-person attendance | Number of participation by communication | Number of commissioned attendance | Absence, number | Did not personally attend the meeting for twice in a row | Number of attendance at shareholders’ meetings | ||
| Ding Xiongjun | No | 14 | 14 | 11 | 0 | 0 | No | 2 |
| Li Jingren | No | 14 | 14 | 11 | 0 | 0 | No | 2 |
| Jiang Guohua | Yes | 9 | 9 | 9 | 0 | 0 | No | 1 |
| Guo Tianyong | Yes | 9 | 9 | 8 | 0 | 0 | No | 1 |
| Sheng Leiming | Yes | 9 | 9 | 8 | 0 | 0 | No | 1 |
| Liu Shizhong | No | 9 | 9 | 8 | 0 | 0 | No | 1 |
| Xie Qinqing | No | 6 | 6 | 4 | 0 | 0 | No | 1 |
| Lu Jinhai | Yes | 5 | 4 | 4 | 1 | 0 | No | 1 |
| Xu Dingbo | Yes | 8 | 8 | 7 | 0 | 0 | No | 1 |
| Zhang | Yes | 8 | 8 | 7 | 0 | 0 | No | 1 |
| Jingzhong | ||||||||
| Fu Zhigang | No | 8 | 8 | 7 | 0 | 0 | No | 1 |
Failure to personally attend board meetings for two consecutive occasions
□Applicable √N/A
| Number of board meetings held within the year | 14 |
| Including: the number of live meetings | 1 |
| Number of meetings held by communication mode | 11 |
| The number of meetings were held on site combined with communication methods | 2 |
6.2 Explanation of directors' objections to company-related matters
□Applicable √N/A
6.3 Other
□Applicable √N/A
7. Situation of a special committee under the Board of Directors
√Applicable □N/A
7.1 The members of a special committee under the Board of Directors
| Special Committee category | Member name |
| The Audit committee | Jiang Guohua, Guo Tianyong, Sheng Leiming |
| The Nomination committee | Sheng Leiming, Ding Xiongjun, Guo Tianyong |
| The Salary and Assessment Committee | Guo Tianyong, Jiang Guohua, Liu Shizhong |
| The Strategy Committee | Ding Xiongjun, Li Jingren, Jiang Guohua, Guo Tianyong, Sheng Leiming, Liu Shizhong, Xie Qinqing |
| The Risk Management Committee | Li Jingren, Jiang Guohua, Sheng Leiming |
7.2 The audit committee held four meetings during the reporting period
| Date of convening | content of meeting | Important comments and suggestions |
| March 29, 2022 | The first annual meeting of the Audit Committee in 2022 | Deliberated and approved the Report on the Performance of the Audit Committee under the Board of Directors in 2021, the Annual Report of 2021 (Full Text and Abstract), the Annual Report on Final Accounts in 2021, the Annual Financial Budget Plan of 2022, the Report on the Evaluation of Internal Control of 2021, the Internal Control Audit Report of 2021, the Proposal on Hiring Financial Audit Institutions and Internal Control Audit Institutions in 2022, the Proposal on Daily Related Transactions and other proposals and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| April 25, 2022 | The Second Meeting of the Audit Committee in 2022 | Deliberated and approved the Report of Kweichow Moutai for the First Quarter of 2022 and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| August 01, 2022 | The Third Meeting of the Audit Committee in 2022 | Deliberated and approved the Semi-annual Report of Kweichow Moutai in 2022 and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| October 13, 2022 | The Fourth Meeting of the Audit Committee in 2022 | Deliberated and approved the Report of Kweichow Moutai for the Second Quarter of 2022, the Proposal on Amending the Rules of Procedure of the Audit Committee under the Board of Directors and other proposals and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
7.3 The nominating committee held three meeting during the reporting period
| Date of convening | content of meeting | Important comments and suggestions |
| May 26, 2022 | The First Meeting of the Nomination Committee in 2022 | Deliberated and approved the Proposal on Nominating Candidates for Independent Directors and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| June 14, 2022 | The Second Meeting of the Nomination Committee in 2022 | Deliberated and approved the Proposal on Formulating the Administrative Measures for the Selection and Appointment of the Members of the Management and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| October 13, 2022 | The Third Meeting of the Nomination Committee in 2022 | Deliberated and approved the Proposal on Amending the Rules of Procedure of the Nomination Committee under the Board of Directors and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
7.4 The Remuneration and Appraisal Committee held three meetings during the reporting period
| Date of convening | content of meeting | Important comments and suggestions |
| May 26, 2022 | The First meeting of the Remuneration and Appraisal Committee in 2022 | Deliberated and approved the Proposal on Adjusting the Allowance Standards for Independent Directors of the Company and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| June 14, 2022 | The Second meeting of the Remuneration and Appraisal Committee in 2022 | Deliberated and approved the Report of Kweichow Moutai for the Second Quarter of 2022, the Proposal on Amending the Rules of Procedure of the Audit Committee under the Board of Directors and other proposals and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| October 13, 2022 | The Third meeting of the Remuneration and Appraisal Committee in 2022 | Deliberated and approved the Proposal on Amending the Rules of Procedure of the Nomination Committee under the Board of Directors and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
7.5 The Strategy Committee held seven meetings during the reporting period
| Date of convening | content of meeting | Important comments and suggestions |
| January 25, 2022 | The First meeting of the Strategy Committee in 2022 | Deliberated and approved the Proposal on Investing in the Implementation of the First Phase Construction Project of the "14th Five-Year Plan" Maotai-flavor Liquor Xishui Tongminba and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| May 26, 2022 | The Second meeting of the | Deliberated and approved the Proposal on Investing in the Construction of 30 Liquor Storehouses in Zhonghua |
| Strategy Committee in 2022 | Area, the Proposal on Adjusting the Investment in the Phase-I Moutai Liquor Technical Transformation Project and Supporting Facilities in Zhonghua Area, the Proposal on Adjusting the Investment in the Technical Transformation Project of Maotai Liquor-making Project in the Second Phase in Zhonghua Area of the Technical Transformation and Expansion Project of Moutai Liquor in the Twelfth Five-Year Plan, the Proposal on Adjusting the Investment in the Technical Renovation Project of Maotai yeast-making Workshop with Annual Capacity of 4,000 tons and the Supporting Facilities in Plot 7 and the Proposal on Adjusting the Investment in Road Construction Project of Hengsi Road (Connection Road between Tanmao Express and Zhonghua Area) in Zhonghua Area and other proposals and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. | |
| June 14, 2022 | The Third meeting of the Strategy Committee in 2022 | deliberated and approved the Proposal on Formulating the Development Plan of the 14th Five-Year Plan, and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| September 08, 2022 | The Fourth meeting of the Strategy Committee in 2022 | Deliberated and approved the Proposal on Purchasing the Right to Use the State-owned Construction Land in Plots C and D of Zhuwangtuo in Yantan Community, Maotai Town, and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| October 13, 2022 | The Fifth meeting of the Strategy Committee in 2022 | Deliberated and approved the Proposal on Amending the Rules of Procedure of the Strategy Committee under the Board of Directors and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| November 27, 2022 | The Sixth meeting of the Strategy Committee in 2022 | Deliberated and approved the Proposal on Investing in the Construction of Raw and Auxiliary Materials Storage Project for Moutai Liquor, the Proposal on Purchasing the Right to Use State-owned Construction Land, the Proposal on Investing in the Maintenance and Renovation of Moutai International Hotel, the Proposal on Revising the Articles of Association and other proposals, and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| December 13, 2022 | The Seventh meeting of the Strategy Committee in 2022 | Deliberated and approved the Proposal on Investing in the Technical Transformation and Construction Project of Moutai Liquor during the 14th Five-Year Plan Period, and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
7.6 The Risk Management Committee held three meetings during the reporting period
| Date of convening | content of meeting | Important comments and suggestions |
| March 29, 2022 | The First meeting of the Risk Management Committee in 2022 | Deliberated and approved the 2021 Annual Report (full text and abstract), the Internal Control Evaluation Report of 2021 and the Proposal on Daily Related Transactions and agreed to submit the |
| relevant proposals to the Board of Directors of the Company for deliberation as required. | ||
| August 01, 2022 | The Second meeting of the Risk Management Committee in 2022 | Deliberated and approved the Semi-annual Report in 2022 and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
| October 13, 2022 | The Third meeting of the Risk Management Committee in 2022 | Deliberated and approved the Proposal on Amending the Rules of Procedure of the Risk Management Committee under the Board of Directors and agreed to submit the relevant proposals to the Board of Directors of the Company for deliberation as required. |
7.7 Specific circumstances where objections exist
□Applicable √N/A
8. Explanation that the Board of Supervisors finds the risks of the CompanyThe Board of Supervisors has no objection to the supervision matters during the reporting period.
9. Report on the employees of the parent company and its main subsidiaries at the end of the period
9.1 Employee condition
| Number of active employees in the parent company | 30,113 |
| Number of active employees in the main subsidiary | 1,300 |
| Total number of current employees | 31,413 |
| The number of retired employees of the parent company and its main subsidiary that shall bear the expenses | 2,075 |
| Professional composition | |
| Professional composition category | Number of majors |
| operating personnel | 26,157 |
| salesman | 1,143 |
| artisan | 698 |
| financial staff | 225 |
| clerical staff | 1,645 |
| other personnel | 1,545 |
| Total | 31,413 |
| Educational background | |
| Education background type | Quantity (person) |
| graduate degree or above | 395 |
| bachelor degree | 9,119 |
| college degree | 4,259 |
| technical secondary school, high school and below | 17,640 |
| Total | 31,413 |
9.2 Compensation policy
√Applicable □N/A
First, the senior managers implement the annual salary system, according to the relevant regulations ofSASAC and the Company; Second, the intermediate managers implement the quasi annual salary system,according to the work nature, responsibilities, risk and performance, the performance pay system, andadopt the total wage contract system according to different management needs, the technical content,knowledge content, labor intensity and performance of different series and posts.
9.3 Training plan
√Applicable □N/A
First, to improve the training quality. According to the principle of "grading and classification, overallconsideration, highlighting key points, focusing on the front line, emphasizing internal trainingsupplemented by outsourcing", the training plan has made more detailed, targeted and practicaladjustments, and the curriculum design has been optimized and the teaching contents have become richer.At a practical level, the number of training people and per capita training hours have been increased, andthe quality of training has been continuously improved. Second, to be strict with training content. Thetraining strictly followed the regulations, such as "every employee should receive at least 42 hours ofprofessional training every year" and "if the training hours reach 24 or more, national laws and regulations,company rules and systems and corporate culture should be included in the training course", and safety,laws and regulations, culture and environmental protection were included in the general training; Third,to highlight the featured contents. The training not only covers the professional knowledge, business skillsand quality improvement training related to production, such as liquor-making and yeast preparation, butalso other kinds of special trainings such as production technology, finance, comprehensive management,equipment management, qualification certification and pre-job training combined with various functionalunits.
9.4 Labor service outsourcing condition
√Applicable □N/A
The company accepts the labor service of Kweichow Moutai Liquor Factory (Group) TechnologyDevelopment Co., Ltd., the holding subsidiary of the parent company, for packaging some products ofMoutai-flavor series liquor. The transaction amount is calculated based on the actual packaging workload.The annual transaction amount in 2022 was CNY 254 million.
10. Profit distribution or capital reserve conversion plan
10.1The formulation, implementation or adjustment of the cash dividend policies
√Applicable □N/A
The articles of Association of the company defines the principles, conditions, methods, cycles, cashdividend ratio, profit distribution decision and adjustment procedures and mechanisms of profitdistribution.According to the Annual Profit Distribution Plan for 2021 deliberated and approved at the annual generalmeeting of shareholders in 2021 of the Company, on the basis of the total share capital amounting to1,256,197,800 shares, the Company distributed cash dividends of CNY 216.75 (including tax) for eachten shares to all the shareholders. For the profit distribution plan, opinions were proposed by theindependent directors of the Company. The plan was deliberated and approved by the Board of Directorsof the Company, and then submitted to the general meeting of shareholders of the Company fordeliberation and approval. The votes of the minority shareholders were counted separately when thegeneral meeting of shareholders deliberated the proposal. The profit distribution was completed in June2022.
According to the Special Dividend Plan for Returning Shareholders deliberated and approved at the firstextraordinary general meeting of shareholders in 2022, the Company distributed the cash dividends ofCNY 219.1 (including tax) to all shareholders of the Company for every 10 shares based on the total sharecapital amounting to 1,256,197,800 shares registered on the registration date for the implementation ofequity distribution. For the profit distribution plan, opinions were proposed by the independent directorsof the Company. The plan was deliberated and approved by the Board of Directors of the Company, andthen submitted to the general meeting of shareholders of the Company for deliberation and approval. Thevotes of the minority shareholders were counted separately when the general meeting of shareholdersdeliberated the proposal. The profit distribution was completed in December 2022.
During the reporting period, the company’s profit distribution shall comply with the provisions of theArticles of Association of the company.
10.2 Special explanation of the cash dividend policy
√Applicable □N/A
| Whether it complies with the provisions of the articles of association or the resolution of the general meeting of shareholders | √Yes □No |
| Whether the dividend standard and proportion are clear | √Yes □No |
| Whether the relevant decision-making procedures and mechanisms are complete | √Yes □No |
| Whether the independent directors perform their duties and play their due role | √Yes □No |
| Whether minority shareholders have the opportunity to fully express their opinions and appeals, and whether their legitimate rights and interests have been fully protected | √Yes □No |
10.3 If the profits are made during the reporting period and the parent company’s distributableprofits available to shareholders are positive, but fails to put forward the cash profit distributionplan, the company shall disclose in detail the reasons, the use and use plan of the undistributedprofits
√Applicable □N/A
| Reasons for the fact that profits were made during the reporting period and the profit available to shareholders of the parent company was positive, but the cash profit distribution plan was not proposed | Purpose and use plan of the undistributed profit |
10.4 Profit distribution and conversion of capital reserves into share capital during the reportingperiod
√Applicable □N/A
Unit: CNY
| Dividend payout for every 10 shares (CNY) (tax included) | 435.85 |
| Amount of cash dividends (tax included) | 54,751,381,113.01 |
| Net profit attributable to ordinary shareholders of listed companies in the consolidated statement for the year of dividends distribution | 62,716,443,738.27 |
| Proportion of the net profit attributable to ordinary shareholders of listed companies in the consolidated statement (%) | 87.30 |
11. Situation and impact of the Company’s equity incentive plan, employee stock ownership plan orother employee incentive measures
11.1 The relevant incentive matters have been disclosed in the interim announcement and there isno progress or change in the subsequent implementation
□Applicable √N/A
11.2 Incentives if not disclosed or with subsequent progress in the interim announcementEquity incentive
□Applicable √N/A
Other specifications
□Applicable √N/A
Employee stock ownership plan condition
□Applicable √N/A
Other incentives
□Applicable √N/A
11.3 The equity incentive situation granted by the directors and senior managers during thereporting period
□Applicable √N/A
11.4 The evaluation mechanism of senior management personnel and the establishment andimplementation of the incentive mechanism during the reporting period
√Applicable □N/A
In 2022, the Company's evaluation and incentive mechanism for senior executives were implemented inaccordance with the relevant provisions of the Administrative Measures for the Remuneration of thePerson in Charge of the Enterprises Supervised by State-owned Assets Supervision and AdministrationCommission of Guizhou Province and the Measures for Assessing the Operating Performance of thePersons in Charge of the Enterprises Supervised by State-owned Assets Supervision and AdministrationCommission of Guizhou Province, and the Administrative Measures for the Performance Appraisal of theMembers of the Management and the Administrative Measures for the Renumeration of the Members ofthe Management of the Company. The renumeration of senior executives was comprehensivelydetermined in combination with the relevant circulars of State-owned Assets Supervision andAdministration Commission of Guizhou Province and the annual operating status of the Company.
12. Construction and implementation of the internal control system during the reporting period
√Applicable □N/A
According to the basic specification of enterprise internal control and its supporting guidelines and otherinternal control regulatory requirements, combined with the company’s internal control system andevaluation method, on the basis of daily supervision and special supervision, the board of directors of thecompany on December 31, 2022 (internal control evaluation report base date) internal controleffectiveness of the evaluation. See the Shanghai Stock Exchange website along with this report (website:
www.sse.com.cn) 2022 Internal Control Evaluation Report.
Description of the major defects existing in the internal control during the reporting period
□Applicable √N/A
13. Management and control of the subsidiaries during the reporting period
√Applicable □N/A.
The Company adhered to the principle of subsidiary management and control based on corporategovernance and centered on functional management and control for the management and control over itsbranches and subsidiaries. In order to strengthen the Company's management over its subsidiaries andstandardize its deliberative bodies and procedures, the Company held system review meetings from timeto time, and pre-reviewed the Articles of Association and the rules of procedure of the "Three Boards" ofits subsidiaries in accordance with the principles of legality, applicability, timeliness and problem-orientedimprovement of management, and studied and discussed the overall framework, duties and powers andspecific scope of discussion of the Articles of Association and the rules of procedure of the "Three Boards".By reviewing the articles of association and the rules of procedure of the "Three Boards” of subsidiaries,the Company strengthened its restriction and supervision over the power operation of the subsidiary'sleading groups, improved work efficiency and work level, and promoted the legalization,institutionalization and scientific decision-making of the deliberative institutions. In 2022, the Companyclosely focused on the indicators of Moutai liquor and Moutai-flavor liquor series, and monitored theimplementation of strategies of its subsidiaries. The subsidiaries exceeded the annual strategic targets, themarket foundation was constantly consolidated, the high-quality development trend was obvious, and themodernization construction was steadily advanced.
14. Relevant information description of the internal control audit report
√Applicable □N/A
See the Shanghai Stock Exchange website along with this report (website: www.sse.com.cn) Part 21 wasdisclosed in the Company’s 2022 Internal Control Audit Report.Whether to disclose the internal control audit report: YesType of internal control audit report opinion: standard unqualified opinion
15. Rectification of self-inspection problems in the special action of governance of listed companiesAccording to the requirements of the Announcement of China Securities Regulatory Commission on theSpecial Action of Listed Companies and the Notice of Guizhou Securities Regulatory Bureau on MattersRelated to the Self-examination of The Governance of Listed Companies, the company conscientiouslycarried out the special self-inspection of listed companies according to the special self-inspection list ofthe governance of listed companies.
In view of the problems found in the self-inspection, the Company attached great importance to suchproblems and seriously made rectifications. As of the end of the reporting period, there are still thefollowing problems, specifically: First, the controlling shareholders failed to fulfill the commitment toimplement the equity incentive plan; Second, a senior executive of the Company works part-time in thecontrolling shareholder.
In the next step, the Company will continue to make rectifications as required, strengthen themodernization construction of corporate governance capacity and level, continuously improve thecorporate governance system and mechanism, keep optimizing the internal control system, steadilyimprove the effectiveness of corporate governance, and promote the high-quality development of theCompany.
16. Other
□Applicable √N/A
Section V Environment and Social Responsibility
1. Environmental information situation
| Whether relevant mechanisms for environmental protection are established | Yes |
| Environmental protection funds invested during the reporting period (Unit: CNY 10,000) | 38,108.29 |
1.1 Environmental information of the company and its major subsidiaries that are key emissionunits announced by the environmental protection authorities
√Applicable □N/A
A. Emission information
√Applicable □N/A
(1) Main pollutants: waste water, waste gas, solid waste.
(2) Name of characteristic pollutants: COD, ammonia nitrogen, sulfur dioxide, nitrogen oxides, smoke(dust).
(3) Emissions of pollutants from January to December 2022.
①Wastewater
There are five sewage treatment plants in the Company, and each sewage treatment plant is equipped witha discharge outlet. These plants are distributed in the old factory area of the company headquarters,Zhonghua Area, and Dadi Area, Xinzhai Area and Yuping Area of Heyixing Liquor Branch. For YupingArea, sewage is pretreated and then discharged to Erhe Sewage Treatment Plant for up-to-standarddischarge, and the sewage in other areas are directly discharged after wastewater treatment reaches thestandard.
| Name of sewage treatment plants | COD | Ammonia nitrogen |
| Average emission concentration (mg/l) | Total emissions (ton) | Average emission concentration (mg/l) | Total emissions (ton) | Pollutant emission standards implemented | ||
| Company headquarters | 7000t/d Sewage treatment plant | 18.385 | 13.785 | 0.236 | 0.177 | Emission Standards for Pollutants in Fermented Alcohol and White Liquor Industry (GB27631-2011) Table 3 Direct Emission Standards |
| 4000t/d Sewage treatment plant | 30.148 | 7.057 | 0.548 | 0.128 | ||
| Heyixing Liquor Branch | Xinzhai Sewage Treatment Plant | 32.055 | 14.258 | 0.672 | 0.254 | |
| Dadi Sewage Treatment Plant | 29.99 | 10.567 | 0.199 | 0.06 | ||
| Erhe Sewage Treatment Plant | 22.864 | 9.451 | 0.097 | 0.04 | Discharge standard of pollutants for municipal wastewater treatment plant(GB27631-2002) Grade I A standard | |
②Exhaust gas
The company’s gas boilers are located in the old factory and Zhonghua area of the company’sheadquarters, and in the Dadi area, Xinzhai area and Erhe area of Heyixing Liquor Branch. Thecompany’s gas boilers use natural gas as the energy source, with direct emissions of boiler exhaust.
| Emission of gas boilers | ||||||||
| Region | Sulfur dioxide | Nitrogen oxides | Smoke (dust) | Standards implemented | ||||
| Average emission concentration (mg/m3) | Total emissions (ton) | Average emission concentration (mg/m3) | Total emissions (ton) | Average emission concentration (mg/m3) | Total emissions (ton) | |||
| Company headquarters (old area and Zhonghua Area) | 4.00 | 3.05 | 73.17 | 53.89 | 4.16 | 3.07 | Emission Standards for Boiler Air Pollutants (GB13271-2014) Table 2 | |
| Heyixing Liquor Branch | Xinzhai Area | 3.00 | 0.73 | 39.45 | 12.00 | 10.15 | 2.61 | |
| Dadi Area | 3.00 | 0.21 | 46.39 | 4.32 | 9.43 | 0.75 | ||
| Yuping Area | 3.00 | 0.37 | 50.39 | 7.35 | 10.72 | 1.28 | ||
③Solid waste disposal
The company’s solid waste lees, waste cellar sludge and waste yeast are handed over to Kweichow MoutaiDistillery (Group) Circular Economy Industrial Investment Development Co., Ltd. and other units forcomprehensive utilization and disposal, while domestic waste is entrusted to third-party units fortransportation to waste incineration power plants for incineration.
(4) Total approved emissions
According to the Administrative Measures for Pollutant Discharge Permit (For Trial Implementation)issued by the Ministry of Environmental Protection and related requirements, the pollutant dischargepermit has been applied for and obtained.
The total approved emissions for the reporting period are: COD 60.1 tons; ammonia nitrogen 6.01 tons;nitrogen oxides 203.87 tons; sulfur dioxide and (powder) dust in accordance with Table 2 of the EmissionStandards for Boiler Air Pollutants (GB13271-2014).
B. Construction and operation of pollution prevention facilities
√Applicable □N/A
Wastewater pollutant control facilities are mainly sewage treatment plants and other equipment facilities,whose construction has been completed and in normal operation; the company began to implement theboiler “coal to gas” project in 2011, and completed the comprehensive transformation in 2014, eliminatingthe coal-fired boilers and building gas boilers, which are now in normal operation.
C. Environmental Impact Assessment of Construction Projects and Other Administrative Permitsfor Environmental Protection
√Applicable □N/A
(1) The company carried out environmental impact assessment for new, reformed and expanded projectsin accordance with the law and obtained 6 approvals for administrative permits for environmental impactassessment in 2022.
(2) Environmental protection inspection and acceptance of completed projects have been carried out inaccordance with the law and 3 online recordings have been completed.
D. Emergency response plan for environmental emergencies
√Applicable □N/A
According to the Management Measures for the Filing of Emergency Response Plans for Enterprises andInstitutions (for Trial Implementation) (Huanfa [2015] No. 4) and other relevant documents, theCompany’s plants (Old Plant Area/Zhonghua area), and Heyixing Liquor Branch (Dadi Area, XinzhaiArea and Erhe Area) have prepared emergency environmental response plans and obtained filing formsfrom environmental protection authorities.
E. Self-monitoring environmental program
√Applicable □N/A
According to the Measures for Environmental Information Disclosure by Enterprises and Institutions,Self-monitoring Technical Guide for Emission Units Liquor and Beverage Manufacturing, Self-monitoring Technical Guide for Emission Units Thermal Power Generation and Boilers and Self-monitoring Technical Guide for Emission Units General Rules and other documents, in order to grasp thestatus of pollutant emissions from our enterprise and its impact on the surrounding environment quality,fulfill our legal obligations and social responsibilities, we have developed a self-monitoring program toensure that our self-monitoring meets the requirements of environmental management.
F. Administrative penalties for environmental issues during the reporting period
□Applicable √N/A
G. Other environmental information that should be made public
□Applicable √N/A
1.2 Environmental information of the company other than key emission units
□Applicable √N/A
1.3 Relevant information conducive to ecological protection, pollution prevention and control, andenvironmental responsibility fulfillment
√Applicable □N/A
The Company adhered to the development path of ecological priority, green, low carbon and high quality,scientifically planned the ecological environment construction, established an efficient environmentalmanagement operation system, monitored and analyzed the changes of key performance indicators bymeans of benchmarking and correlation analysis, and optimized and adjusted measures in time to ensurethe continuous improvement of the ecological environment quality of Moutai brewing.
First, constructed a life community of “mountain, water, forest, soil, river and microorganism” lifecommunity. In order to effectively maintain the stable balance of the ecosystem in Maotai producing areas,the Company has gradually promoted five special protection projects of "increasing high-quality waterresources, improving air quality, conservation of water and soil, protecting microorganism andmaintaining ecosystem balance". Through measures such as ecological bearing research, ecological spaceoptimization, soil and water gas system management, ecological restoration of vegetation and ecologicalcompensation, the water quality of the Maotai section along Chishui River was guaranteed to be stable atClass II surface water, the water ecological index was good, the excellent and good rate of air quality wasover 98%, the vegetation coverage rate within the plant was over 27%, the diversity of native plantsexceeded 230 varieties, and the ecological development index of the production area remained stable.
Second, comprehensively improved the ecological design standards of newly-built parks. The Companyadhered to the design concept of "high-quality, green, efficient and open". It was planned that the newly-built park would realize 100% utilization rate of solid production waste, over 30% reuse rate of reclaimedwater, implement Class IV standard of surface water for ecological water recession, effectively monitorand warn environmental data through the whole process of carbon accounting, low-disturbancedevelopment and construction, wastewater resource utilization, closed double-cycle water cooling,intelligent environmental monitoring and other measures, to create a demonstration park of Moutai-flavorliquor industry cluster in all directions and multi-dimensions, and realize the goal of "the bestcomprehensive benefit, the most beautiful ecological environment and the latest intelligent management".
Third, built a green treatment technology system for wastewater from Moutai-flavor liquor brewing. Bysummarizing the common problems in wastewater treatment technology, equipment, management andengineering, the domestic first-class expert team provided technical support to formulate a series oftechnical standards for wastewater from Maotai-flavor liquor brewing. The Company standardized thedesign of Moutai-flavor liquor wastewater treatment, achieved the goal of convenient management,intelligent operation, high efficiency and low consumption, green and safe sewage system with stablewater quality, supported the ecological protection of water environment in the river basin, realizedsustainable green development, continuously reduced the pollutant discharge per unit product, andachieved stable pollutant discharging compliance.
Fourth, established a small-scale ecological bearing capacity evaluation model for river basin.TheCompany carried out investigation and research on the present situation and evolution trend of ecologicalenvironment elements in Maotai region, systematically evaluated the key constraints of ecologicalenvironment in Maotai region, built a small-scale (town-level) ecological carrying capacity model basedon the perspective of resources-environment-ecology, broke through the technical bottleneck of ecologicalcarrying capacity research in small watershed scale, and put forward policy suggestions such as the settingof buffer zone and construction of low-emission zone , which provided technical support for ecologicalenvironment planning and management. The water quality stability, excellent and good rate of air qualityand resource utilization rate of water resources continued to increase year by year.
1.4 Measures taken to reduce its carbon emissions during the reporting period and their effects
| Whether any carbon reduction measure is taken | Yes |
| Carbon dioxide equivalents of reduced emission (unit: ton) | 32,930.60 |
| Types of carbon reduction measures (such as using clean energy to for power generation, using carbon reduction technology in the production process, | In 2022, the Company has completed the procurement of 44 million kwh green power certificate, with a carbon reduction of 32,930.60 tons, and completed the procurement of green electricity during the period from 2023 to 2025. |
| developing and producing new products that support carbon reduction, etc.) | Since 2023, the coverage of green electricity consumption of the Company will reach 100%. |
Specific explanation
□Applicable √N/A
2. Social Responsibility Work
2.1 Whether there is any social responsibility report, sustainable development report or ESG reportdisclosed separately
√Applicable □N/A
For details, please refer to our “Social Responsibility and ESG Report 2022” disclosed on the website ofShanghai Stock Exchange (URL: www.sse.com.cn) at the same time as this report.
2.2 Specific information on social responsibilities
□Applicable √N/A
Specific explanation
□Applicable √N/A
3. Specific work on consolidating and expanding the progress in poverty alleviation and ruralrevitalization
√Applicable □N/A
| Item of poverty alleviation and rural revitalization | Quantity/Contents |
| Total input (Unit: CNY 10,000) | 6,396.05 |
| Including: funds (Unit: CNY 10,000) | 1,384.56 |
| Amount equivalent to goods and materials (Unit: CNY 10,000) | 5,011.49 |
| Number of beneficiaries (person) | 37,483 |
| Forms of assistance (such as poverty alleviation through industries, employment, education, etc.) | Poverty alleviation through industries and education |
Specific description
□Applicable √N/A
Section VI Significant Events
1. Undertakings of Commitment Fulfillment
1.1 Undertakings of the Company’s actual controller, shareholders, related parties and acquirers,as well as the Company and other commitment makers fulfilled in the reporting period or ongoingby the end of this reporting period
√Applicable □N/A
| Commitment Background | Type | Committed Parties | Commitment Content | Commitment time and period | If there is a fulfillment period | If fulfilled timely and strictly | State the specific reason in case of failure to fulfill | Explain the next plan in case of failure to fulfill |
| Commitments related to sharehol | Other | China Kweichow Moutai | Equity incentive commitment: After | Advance the development of equity | Yes | No | The higher authorities have |
| ding reform | Distillery (Group) Co., Ltd. | the completion of the equity share reform, the company will develop the equity incentive scheme for the management and core technical team according to the relevant national policies and regulations. | incentives for the company’s management and core technical team by the end of December 2017. | not issued relevant guidance and specific measures. |
1.2 If there is a profit forecast for the company’s assets or projects, and the reporting period is stillin the profit forecast period, the company provides an explanation on whether the assets or projectsmeet the original profit forecast and its reasons
□Have met □Have not met √N/A
1.3 The completion of performance commitments and their impact on the goodwill impairment test
□Applicable √N/A
2. Non-operating appropriation of funds by controlling shareholders and other related partiesduring the reporting period
□Applicable √N/A
3. Non-compliance with guarantees
□Applicable √N/A
4. Explanation of the board of directors regarding the “Non-standard audit opinion” by the CPAfirm
□Applicable √N/A
5. Analysis of the reasons for and effects of changes in accounting policies, accounting estimates orcorrections of significant accounting errors by the Company
5.1 Analysis of the reasons for and effects of changes in accounting policies and accounting estimates
□Applicable √N/A
5.2 Analysis of the reasons for and effects of corrections of significant accounting errors by theCompany
□Applicable √N/A
5.3 Communication with the previous CPA firm
□Applicable √N/A
6. Engagement and disengagement of CPA firms
Unit: CNY 10,000
| Current CPA | |
| Name of the domestic CPA firm | Baker Tilly China CPAs |
| Remuneration of the domestic CPA firm | 120 |
| Years of audit by the domestic CPA firm | 5 |
| Name | Remuneration | |
| Internal control audit CPA firm | Baker Tilly China CPAs | 41 |
Note on the engagement and disengagement of CPA firms
□Applicable √N/A
Note on reappointing the CPA firm during the audit
□Applicable √N/A
7. Cases facing the risk of delisting
7.1 Reasons of delisting risk warnings
□Applicable √N/A
7.2 Measures to be taken by the Company in response
□Applicable √N/A
7.3 Circumstances and reasons for facing termination of listing
□Applicable √N/A
8. Matters related to bankruptcy restructuring
□Applicable √N/A
9. Significant litigation and arbitration matters
□The company has significant litigation and arbitration matters during the year
√ The company has no significant litigation and arbitration matters during the year
10. The listed company and its directors, supervisors, senior management, controlling shareholdersand actual controllers are suspected of violating the law, being punished and their rectification
□Applicable √N/A
11. Description of the integrity of the Company and its controlling shareholders and actualcontrollers during the reporting period
√Applicable □N/A
The integrity of the Company and its controlling shareholders during the reporting period is good.
12. Significant related party transactions
12.1 Related party transactions related to daily operations
A. Matters that have been disclosed in the interim announcement with no progress or changes insubsequent implementation
□Applicable √N/A
B. Matters that have been disclosed in the interim announcement with progress or changes insubsequent implementation
□Applicable √N/A
C. Matters not disclosed in the interim announcement
√Applicable □N/A
(1) Related party transactions with the same related party as those considered and approved by the Boardof Directors
Unit: CNY
| Name of related parties | Relationship | Type of Related party transactions | Content of Related party transactions | Pricing Principles for Related party transactions | Connected transaction price | Amount of Related party transactions | Proportion of the amount of similar transactions (%) | Settlement of Related party transactions | Market Price | Reasons for large differences between transaction prices and market reference prices |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Acceptance of labor services | Comprehensive Service Fee | Agreed Price | 194,415.10 | 100.00 | cash payment | |||
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Majority-owned subsidiary of the parent company | Acceptance of labor services | transportation services | Refer to independent third-party transaction prices | 176,888,990.77 | 62.54 | cash payment | |||
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | Majority-owned subsidiary of the parent company | Purchase of goods | Purchase of goods | The same purchase price as the supply price of other unrelated suppliers of the company | 261,924,856.26 | 8.04 | cash payment | |||
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Other | Purchase of goods | Purchase of goods | The same purchase price as the supply price of other unrelated suppliers of the company | 186,087,312.72 | 5.72 | cash payment | |||
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Purchase of goods | Purchase of goods | Agreed Price | 130,101,300.00 | 100.00 | cash payment | |||
| Gui Zhou New Huaxi Glass Co., Ltd | Other | Purchase of goods | Purchase of goods | The same purchase price as the supply price of other unrelated suppliers of the company | 102,311,289.42 | 3.14 | cash payment | |||
| Guizhou Fuming Packaging Co. Ltd | Other | Purchase of goods | Purchase of goods | The same purchase price as the supply price of other unrelated suppliers of the company | 88,324,091.21 | 2.71 | cash payment |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Other | Purchase of goods | Purchase of goods | The same purchase price as the supply price of other unrelated suppliers of the company | 63,728,794.52 | 2.91 | cash payment | |||
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | Purchase of goods | Purchase of goods | Agreed Price | 159,019.22 | 100.00 | cash payment | |||
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | Other | Purchase of goods | Purchase of goods | The same purchase price as the supply price of other unrelated suppliers of the company | 74,203.56 | 0.19 | cash payment | |||
| Guizhou Xijiu Co., Ltd. | Other | Other utility costs such as water, electricity and gas (purchase) | Receiving water services | Agreed Price | 5,064,200.00 | 99.05 | cash payment | |||
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Other | Other utility costs such as water, electricity and gas (purchase) | Receiving water and power services | Agreed Price | 48,625.95 | 0.95 | cash payment | |||
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | Acceptance of labor services | Labor fee | Agreed Price | 229,128,409.82 | 24.26 | cash payment | |||
| Hotel Management Company of Moutai Group | Wholly-owned subsidiary of the parent company | Acceptance of labor services | Labor fee | Agreed Price | 67,315,342.78 | 7.13 | cash payment | |||
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Other | Acceptance of labor services | Labor fee | Agreed Price | 64,402,800.47 | 6.82 | cash payment | |||
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Acceptance of labor services | Labor fee | Agreed Price | 25,273,693.09 | 2.72 | cash payment | |||
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Majority-owned subsidiary of the parent company | Acceptance of labor services | Labor fee | Agreed Price | 5,224,867.44 | 0.55 | cash payment | |||
| Kweichow Moutai (group) International Travel Service Co., Ltd. | Other | Acceptance of labor services | Labor fee | Agreed Price | 2,684,355.24 | 0.28 | cash payment | |||
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Acceptance of labor services | Labor fee | Agreed Price | 1,939,970.05 | 0.21 | cash payment | |||
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Other | Acceptance of labor services | Labor fee | Agreed Price | 25,661.62 | 0.0027 | cash payment |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Rent in and rent out | Rental fee | Agreed Price | 26,062,215.21 | 34.32 | cash payment | |||
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Rent in and rent out | Rental fee | Agreed Price | 3,582,654.81 | 4.72 | cash payment | |||
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Other | Rent in and rent out | Rental fee | Agreed Price | 1,503,734.86 | 1.98 | cash payment | |||
| Kweichow Zunyi Moutai Airport Co., Ltd. | Majority-owned subsidiary of the parent company | Rent in and rent out | Rental fee | Agreed Price | 337,599.08 | 0.44 | cash payment | |||
| Beijing Moutai Trading Co., Ltd. | Wholly-owned subsidiary of the parent company | Rent in and rent out | Rental fee | Agreed Price | 4,678.90 | 0.0062 | cash payment | |||
| Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 5,241,503,023.90 | 4.23 | cash payment | |||
| Hotel Management Company of Moutai Group | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 23,529,334.51 | 0.02 | cash payment | |||
| Shanghai Kweichow Moutai Industrial Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 6,435,461.94 | 0.005 | cash payment | |||
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 2,999,915.04 | 0.0024 | cash payment |
| Beijing Moutai Trading Co., Ltd. | Wholly-owned subsidiary of the parent company | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 1,568,516.81 | 0.001 | cash payment | |||
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | Other | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 466,152.22 | 0.00038 | cash payment | |||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Sales of goods | Sales of goods | The sale price is the same as the purchase price of the company’s other unaffiliated dealers | 53,978.23 | 0.00004 | cash payment | |||
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Other | Sales of goods | Labor fee | Agreed Price | 571,925.36 | 63.67 | cash payment | |||
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | Providing services | Labor fee | Agreed Price | 239,611.71 | 26.67 | cash payment | |||
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Providing services | Labor fee | Agreed Price | 86,782.75 | 9.66 | cash payment | |||
| Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | Rent in and rent out | Rental fee | Agreed Price | 495,146.47 | 50.32 | cash payment | |||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Rent in and rent out | Rental fee | Agreed Price | 488,903.16 | 49.68 | cash payment | |||
| Total | 6,720,831,834.20 | |||||||||
(2) Related transactions with the same related party deliberated and approved by the general meeting ofshareholdersThe Company used the registered trademark of its parent company, China Kweichow Moutai Distillery(Group) Co., Ltd., and the expenses for the right to use trademarks incurred during the reporting periodamounted to CNY 1,639.84 million.
(3) Related transactions with other related parties
A. The Company purchased Ankang comprehensive insurance for female employees from Huagui LifeInsurance Co., Ltd., and the amount incurred in the current period amounted to CNY 499.6 thousand.
B. The ending balance of the Company's deposit in Bank of Guizhou amounted to CNY 20,851.24 million(including 2,000,000,000 of certificates of deposit), and the interest income in the current period was CNY
632.53 million, and the investment income was CNY 63.84 million. Kweichow Moutai Group FinanceCo., Ltd., a controlling subsidiary of the Company, purchased the bonds issued by Bank of Guizhou Co.,Ltd. from the open market, with a cost of CNY 300 million and recognized interest income of CNY 3.69million. As of the end of the period, the balance of provision for impairment of such creditor's rightinvestments amounted to CNY 170,600, the balance of accrued interest was CNY 425,300, and the bookvalue was CNY 300.25 million.
12.2 Affiliated transactions arising from the acquisition or sale of assets or equity
A. Matters disclosed in the interim announcement but without progress or change in subsequentimplementation
□Applicable √N/A
B. Matters disclosed in the interim announcement but without progress or change in subsequentimplementation
□Applicable √N/A
C. Matters not disclosed in the interim announcement
□Applicable √N/A
D. If performance agreement is involved, the realization of performance during the reportingperiod shall be disclosed
□Applicable √N/A
12.3 Important related party transactions jointly invested
A. Matters disclosed in the temporary announcement without subsequent progress or change
□Applicable √N/A
B. Matters disclosed in the temporary announcement with subsequent progress or change
□Applicable √N/A
C. Matters not disclosed in the temporary announcement
□Applicable √N/A
12.4 Related debt transactions
A. Matters disclosed in the temporary announcement without subsequent progress or change
□Applicable √N/A
B. Matters disclosed in the temporary announcement with subsequent progress or change
□Applicable √N/A
C. Matters not disclosed in the temporary announcement
□Applicable √N/A
12.5 Financial business between the Company and the financial company with which the Companyis associated, the financial company in which the Company holds a majority of shares and therelated parties
√Applicable □N/A
A. Deposit business
√Applicable □N/A
Unit: CNY
| Related party | Related party relationship | Maximum deposit per day | Range of deposit rate | Opening balance | Current period | Closing balance | |
| Total deposit in the current period | Total withdrawal in the current period | ||||||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | 2,495,925,365.33 | 83,368,340,575.05 | 82,529,984,267.10 | 3,334,281,673.28 | ||
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 1,717,927,696.48 | 4,270,945,679.63 | 4,333,865,663.09 | 1,655,007,713.02 | ||
| Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company | 4,125,683,019.60 | 9,732,581,050.43 | 9,508,682,469.61 | 4,349,581,600.42 | ||
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | Other | 703,943,274.58 | 2,762,454,769.00 | 2,833,323,219.07 | 633,074,824.51 | ||
| Kweichow Zunyi Moutai Airport Co., Ltd. | Majority-owned subsidiary of the parent company | 62,588,751.47 | 789,575,665.48 | 565,566,933.09 | 286,597,483.86 | ||
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | 111,809,289.12 | 3,522,004,617.60 | 3,476,801,126.50 | 157,012,780.22 | ||
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Other | 210,256,768.22 | 458,814,577.26 | 517,009,374.30 | 152,061,971.18 | ||
| Kweichow Moutaichun Marketing Company | Other | 611,840,193.66 | 465,715,862.82 | 869,175,433.47 | 208,380,623.01 | ||
| ChangLi Moutai Liquor Trade Co., Ltd. | Other | 285,759,553.99 | 663,827,644.99 | 715,873,205.78 | 233,713,993.20 | ||
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 129,905,237.28 | 555,957,010.49 | 441,103,326.16 | 244,758,921.61 | ||
| Guizhou Zunpeng Liquor Industry Co., Ltd. | Other | 118,316,553.92 | 1,207,283,208.16 | 1,030,804,163.07 | 294,795,599.01 | ||
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company | 218,557,849.69 | 1,389,409,236.39 | 1,307,065,113.46 | 300,901,972.62 | ||
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | Majority-owned subsidiary of the parent company | 59,468,124.71 | 323,044,597.27 | 333,678,950.62 | 48,833,771.36 | ||
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Majority-owned subsidiary of the parent company | 53,805,881.56 | 1,038,074,184.71 | 709,646,437.29 | 382,233,628.98 | ||
| Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. | Other | 17,310,976.60 | 711,348,104.28 | 639,572,912.92 | 89,086,167.96 | ||
| Shanghai Moutai Trading Co., Ltd. | Other | 46,676,247.54 | 372,965,400.11 | 367,577,052.96 | 52,064,594.69 | ||
| Beijing Moutai Trading Co., Ltd. | Wholly-owned subsidiary of the parent company | 32,451,635.50 | 593,110,907.26 | 511,709,113.18 | 113,853,429.58 | ||
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | Other | 36,003,808.59 | 187,175,625.56 | 203,480,958.73 | 19,698,475.42 | ||
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Other | 16,156,106.85 | 223,246,937.54 | 232,062,487.30 | 7,340,557.09 | ||
| Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. | Other | 52,942,266.44 | 317,622,033.14 | 309,647,700.77 | 60,916,598.81 | ||
| Health Industry Co., Ltd. of Kweichow Moutai Group. | Other | 39,369,350.32 | 315,138,664.26 | 335,382,804.52 | 19,125,210.06 | ||
| Guizhou Fuming Packaging Co. Ltd | Other | 11,770,678.41 | 127,121,465.12 | 127,497,500.95 | 11,394,642.58 | ||
| Guizhou Jiuyuan Property Co., Ltd. | Other | 28,325,260.27 | 62,465,176.66 | 61,037,288.50 | 29,753,148.43 | ||
| Kweichow Moutai (group) International Travel Service Co., Ltd. | Other | 25,842,341.72 | 10,791,809.53 | 10,539,422.00 | 26,094,729.25 | ||
| Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 18,266,371.84 | 122,947,011.89 | 117,346,298.72 | 23,867,085.01 | ||
| Shanghai Kweichow Moutai Industrial Co., Ltd. | Wholly-owned subsidiary of the parent company | 15,967,961.65 | 135,156,567.26 | 107,544,802.19 | 43,579,726.72 | ||
| Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. | Majority-owned subsidiary of the parent company | 9,477,982.97 | 277,558,935.65 | 280,162,719.10 | 6,874,199.52 | ||
| Guizhou Xijiu Co., Ltd. | Other | 573,990,484.69 | 3,490,212,506.80 | 4,064,202,991.49 | |||
| Hotel Management Company of Moutai Group | Wholly-owned subsidiary of the parent company | 36,722,376.06 | 81,179,038.56 | 66,905,471.18 | 50,995,943.44 | ||
| Gui Zhou New Huaxi Glass Co., Ltd | Other | 679,580.38 | 175,542,696.34 | 151,764,353.49 | 24,457,923.23 | ||
| Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. | Other | 14,880,578.48 | 36,547.92 | 14,917,126.40 | |||
| Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. | Wholly-owned subsidiary of the parent company | 1,947,197.79 | 4,230,619.02 | 5,083,295.96 | 1,094,520.85 | ||
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Other | 621,579.71 | 2,200.66 | 623,780.37 | |||
| Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | Other | 179,194.11 | 1,648,440.79 | 1,115,847.59 | 711,787.31 | ||
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Wholly-owned subsidiary of the parent company | 2,110,181.09 | 12,115,847.70 | 14,017,516.53 | 208,512.26 | ||
| Guizhou Xijiu Sales Co., Ltd. | Other | 9,734,392,686.40 | 11,179,298,046.78 | 20,913,690,733.18 | |||
| Moutai Financial Leasing Co., Ltd | Wholly-owned subsidiary of the parent company | 5,268.68 | 37.95 | 18.72 | 5,287.91 | ||
| Moutai (Guizhou) Investment Management Co., Ltd. | Majority-owned subsidiary of the parent company | 4,018.30 | 28.95 | 14.28 | 4,032.97 |
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | Other | 3,502.12 | 25.24 | 12.45 | 3,514.91 | ||
| Maotai (Guizhou) Investment Fund (L.P.) | Majority-owned subsidiary of the parent company | 843.33 | 6.08 | 3 | 846.41 | ||
| Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | Other | 27.87 | 191,250.31 | 191,250.23 | 27.95 | ||
| Guizhou Baijin Liquor Sales Co., Ltd. | Other | 63,730,740.85 | 64,445,570.08 | 128,176,310.93 | |||
| Guizhou Baijin Liquor Co., Ltd. | Other | 48,855,234.24 | 42,922,683.86 | 91,777,918.10 | |||
| Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. | Other | 29,103,604.91 | 236,404,391.44 | 253,837,267.17 | 11,670,729.18 | ||
| Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology Development Co., Ltd. | Majority-owned subsidiary of the parent company | 33,511,214.70 | 33,506,107.10 | 5,107.60 | |||
| Total | 21,763,575,647.32 | 129,326,418,470.72 | 138,215,950,762.62 | 12,874,043,355.42 |
Note: The above deposit interest rate ranges from 0.35% to 1.50%.
Interest paid to related parties
Unit: CNY
| Related party | This reporting period |
| Guizhou Xijiu Sales Co., Ltd. | 28,811,523.39 |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 27,445,198.75 |
| Kweichow Moutai Group Marketing Co., Ltd. | 17,622,560.74 |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | 9,331,364.94 |
| Kweichow Moutaichun Marketing Company | 3,651,119.60 |
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 2,538,298.58 |
| ChangLi Moutai Liquor Trade Co., Ltd. | 2,364,961.46 |
| Guizhou Zunpeng Liquor Industry Co., Ltd. | 2,534,657.65 |
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | 1,601,934.07 |
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 1,825,616.62 |
| Kweichow Zunyi Moutai Airport Co., Ltd. | 2,331,439.32 |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | 602,628.76 |
| Guizhou Baijin Liquor Sales Co., Ltd. | 262,285.04 |
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 712,081.81 |
| Guizhou Jiuyuan Property Co., Ltd. | 451,888.16 |
| Health Industry Co., Ltd. of Kweichow Moutai Group. | 228,228.42 |
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | 338,111.19 |
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | 255,008.11 |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 815,661.10 |
| Shanghai Moutai Trading Co., Ltd. | 236,597.15 |
| Beijing Moutai Trading Co., Ltd. | 204,185.32 |
| Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. | 242,065.55 |
| Guizhou Xijiu Co., Ltd. | 106,253.40 |
| Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | 148,394.67 |
| Guizhou Baijin Liquor Co., Ltd. | 67,006.43 |
| Shanghai Kweichow Moutai Industrial Co., Ltd. | 99,284.51 |
| Kweichow Moutai (group) International Travel Service Co., Ltd. | 87,576.28 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 108,806.11 |
| Hotel Management Company of Moutai Group | 117,010.65 |
| Guizhou Fuming Packaging Co. Ltd | 95,285.07 |
| Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. | 59,060.03 |
| Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. | 41,444.56 |
| Gui Zhou New Huaxi Glass Co., Ltd | 44,176.66 |
| Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. | 20,844.06 |
| Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. | 18,273.96 |
| Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. | 154,157.83 |
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 1,655.27 |
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | 1,100.33 |
| Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology Development Co., Ltd. | 5,607.60 |
| Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | 803.24 |
| Moutai Financial Leasing Co., Ltd | 19.23 |
| Moutai(Guizhou) Investment Management Co., Ltd. | 14.67 |
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 12.79 |
| Maotai (Guizhou) Investment Fund (L.P.) | 3.08 |
| Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | 0.08 |
| Total | 105,584,206.24 |
B. Loan business
√Applicable □N/A
Unit: CNY
| Related party | Relation | Loan amount | Interest Rate | Opening balance | Amount for this period | Closing balance | |
| Total loan amount for the current period | Total repayment amount for the current period | ||||||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | 3,500,000,000.00 | 3.65%-3.70% | 3,500,000,000.00 | 3,500,000,000.00 | 3,500,000,000.00 | 3,500,000,000.00 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Other | 299,000,000.00 | 3.65%-3.70% | 10,000,000.00 | 61,730,000.00 | 14,000,000.00 | 57,730,000.00 |
| Total | / | / | / | 3,510,000,000.00 | 3,561,730,000.00 | 3,514,000,000.00 | 3,557,730,000.00 |
Interest charged to related parties
Unit: CNY
| Item | Related party | This reporting period |
| Loan interest income | China Kweichow Moutai Distillery (Group) Co., Ltd. | 126,595,256.84 |
| Loan interest income | Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 359,002.00 |
| Total | 126,954,258.84 |
C. Credit business or other financial business
√Applicable □N/A
Unit: CNY
| Related party | Relation | Business type | Total amount | Actual amount |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Parent company | Credit loan | 3,500,000,000.00 | 3,500,000,000.00 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Other | Mortgage loan | 100,000,000.00 | 57,730,000.00 |
| Credit loan | 199,000,000.00 | |||
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company | Credit loan | 500,000,000.00 |
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | Other | Credit loan | 10,000,000.00 | |
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Wholly-owned subsidiary of the parent company | Entrusted loans | 9,955,184.18 | 9,955,184.18 |
| Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | Other | Entrusted loans | 9,955,184.18 | 9,955,184.18 |
D. Other instructions
√Applicable □N/A
Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company, purchased thebonds issued by Guiyang GY Financial Leasing Co., Ltd. from the open market, with a cost of CNY 20million and recognized interest income of CNY 0.86 million. As of the end of the period, the balance ofprovision for impairment of such creditor's right investments amounted to CNY 0.01million, the balanceaccrued interest was CNY 0.15 million, and the book value was CNY 20.14 million.
12.6 Others
□Applicable √N/A
13. Significant contracts and their performance
13.1 Trusteeship, contracting and leasing
A. Trusteeship
□Applicable √N/A
B. Contracting
□Applicable √N/A
C. Leasing
□Applicable √N/A
13.2 Major guarantees
□Applicable √N/A
13.3 Entrusting others to manage cash assets
A. Entrusted assets managementa. Overview of entrusted assets management
□Applicable √N/A
Other situations
□Applicable √N/A
b. Principal entrusted assets management
□Applicable √N/A
Other situations
□Applicable √N/A
c. Provision for impairment of entrusted assets management
□Applicable √N/A
B. Entrusted loansa. Overview of entrusted loans
□Applicable √N/A
Other situations
□Applicable √N/A
b. Principal entrusted loans
□Applicable √N/A
Other situations
□Applicable √N/A
c. Provision for impairment of entrusted loans
□Applicable √N/A
C. Other situations
□Applicable √N/A
13.4 Other significant contracts
□Applicable √N/A
14. Instruction of other major events that have a significant impact on investors’ value judgmentsand investment decisions
□Applicable √N/A
Section VII Changes in Shares and Information about Shareholders
1. Changes in share capital
1.1 Changes in shares
A. Changes in sharesDuring the reporting period, there is no change to the total number of shares and share capital structureof the Company.
B. Explanation of changes in shares
□Applicable √N/A
C. Impact of changes in shares on financial indicators such as earnings per share and net assets pershare in the latest year and the latest period (if any)
□Applicable √N/A
D. Other contents deemed necessary by the Company or required by securities regulators to disclose
□Applicable √N/A
1.2 Changes in restricted shares
□Applicable √N/A
2. Securities issuance and listing
2.1 Issues of securities as of the reporting period
□Applicable √N/A
Explanation of securities issuance as of the reporting period (for bonds with different interest rates in theduration, please explain separately):
□Applicable √N/A
2.2 Changes in the Company’s total shares and shareholder structure, and changes in theCompany’s asset and liability structure
□Applicable √N/A
2.3 Existing employees’ shares
□Applicable √N/A
3. Shareholders and actual controllers
3.1 Total number of shareholders
| The total number of ordinary shareholders as of the end of the reporting period | 167,516 |
| The total number of ordinary shareholders at the end of the previous month before the disclosure date of the annual report | 159,541 |
3.2 Shareholdings of the top ten shareholders and top ten tradable shareholders (or shareholderswithout restrictions on sales) as of the end of the reporting period
Unit: Share
| Shareholdings of the top ten shareholders | |||||||
| Shareholder name (full name) | Increase or decrease during the reporting period | Number of shares held at the end of the period | Proportion (%) | Number of shares held with restrictions on sales | Staking, tokenizing or freezing | Nature of shareholders | |
| Share status | Quantity | ||||||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | 678,291,955 | 54 | None | State-own legal person | |||
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | -4,883,202 | 84,798,642 | 6.75 | Unknown | Unknown | ||
| Guizhou Provincial State-owned Capital Operation Co., Ltd. | 56,996,777 | 4.54 | Unknown | State-own legal person | |||
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 27,812,088 | 2.21 | None | State-own legal person | |||
| Central Huijin Asset Management Co., Ltd. | 10,397,104 | 0.83 | Unknown | State-own legal person | |||
| China Securities Finance Corporation Limited | 8,039,447 | 0.64 | Unknown | Unknown | |||
| Shenzhen Jinhui Rongsheng Wealth Management Co., Ltd. - Jinhui Rongsheng No. 3 Private Securities Investment Fund | 1,674,929 | 7,604,279 | 0.61 | Unknown | Unknown | ||
| Zhuhai Ruifeng Huibang Asset Management Co., Ltd. - Ruifeng Huibang | 2,136,950 | 7,503,667 | 0.6 | Unknown | Unknown | ||
| No. 3 Private Securities Investment Fund | |||||||
| Bank of China Limited - China Merchants CSI Liquor Index Graded Securities Investment Fund | -392,551 | 5,445,803 | 0.43 | Unknown | Unknown | ||
| Industrial and Commercial Bank of China - Shanghai Stock Exchange 50 Exchange-traded Open-end Index Securities Investment Fund | 43,395 | 5,379,160 | 0.43 | Unknown | Unknown | ||
| Shareholdings of the top ten shareholders without restrictions on sales | |||||||
| Shareholder name | The number of tradable shares held without restrictions on sales | Type and quantity of shares | |||||
| Type | Quantity | ||||||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | 678,291,955 | ordinary shares | 678,291,955 | ||||
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | 84,798,642 | ordinary shares | 84,798,642 | ||||
| Guizhou Provincial State-owned Capital Operation Co., Ltd. | 56,996,777 | ordinary shares | 56,996,777 | ||||
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 27,812,088 | ordinary shares | 27,812,088 | ||||
| Central Huijin Asset Management Co., Ltd. | 10,397,104 | ordinary shares | 10,397,104 | ||||
| China Securities Finance Corporation Limited | 8,039,447 | ordinary shares | 8,039,447 | ||||
| Shenzhen Jinhui Rongsheng Wealth Management Co., Ltd. - Jinhui Rongsheng No. 3 Private Securities Investment Fund | 7,604,279 | ordinary shares | 7,604,279 | ||||
| Zhuhai Ruifeng Huibang Asset Management Co., Ltd. - Ruifeng Huibang No. 3 Private Securities Investment Fund | 7,503,667 | ordinary shares | 7,503,667 | ||||
| Bank of China Limited - China Merchants CSI Liquor Index Graded Securities Investment Fund | 5,445,803 | ordinary shares | 5,445,803 | ||||
| Industrial and Commercial Bank of China - Shanghai Stock Exchange 50 Exchange-traded Open-end Index Securities Investment Fund | 5,379,160 | ordinary shares | 5,379,160 |
| Explanation of the relations or concerted actions of the above shareholders | Among the above shareholders, there are relations between China Kweichow Moutai Distillery (Group) Co., Ltd. and Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. In addition, the Company is not aware of the relations among other shareholders and whether they are persons acting in concert. | ||
Note: On November 29, 2022, the Company disclosed the Announcement on the Plan for IncreaseShareholding of the Company by the Controlling Shareholders (Announcement No.: Lin 2022-030). Asof March 29, 2023, China Kweichow Moutai Distillery (Group) Co., Ltd. and Kweichow Moutai Distillery(Group) Technology Development Co., Ltd. increased their holdings of shares of Kweichow Moutai by840,514 shares, accounting for 0.0669% of the Company's total share capital, the actual increase amountof the two shareholders has reached the lower limit of the planned increase range respectively.
Number of shares held by the top ten shareholders with restrictions on sales and restrictions on sales
□Applicable √N/A
3.3 Strategic investors or general legal persons become the top 10 shareholders due to placement ofnew shares
□Applicable √N/A
4. Controlling shareholders and actual controllers
4.1Controlling shareholders
A. Legal person
√Applicable □N/A
| Name | China Kweichow Moutai Distillery (Group) Co., Ltd. |
| Legal Representative | Ding Xiongjun |
| Date of establishment | January 24, 1998 |
| Main business | Production and operation of alcoholic products (main business); production technology consulting and services of alcoholic products; production and sales of packaging materials and beverages; catering, accommodation, tourism, logistics and transportation; import and export trade business; Internet industry; real estate development and leasing, parking lot management; education, health; ecological agriculture.. |
| Shareholdings of other domestic and overseas listed companies that controlled and participated in during the reporting period | Holding 0.24% of the shares of Bank of Communications Co., Ltd.; holding 3.97% of the shares of Huachuang Yangan Co., Ltd.; holding 1.45% of the shares of Bank of Guiyang Co., Ltd.; holding 10.07% of the shares of Guizhou Radio and Television Information Network Co., Ltd.; holding 12% of the shares of Bank of Guizhou Co., Ltd. |
B. Natural person
□Applicable √N/A
C. Special instructions for the fact that the Company does not have controlling shareholders
□Applicable √N/A
D. Explanation on changes of controlling shareholders during the reporting period
□Applicable √N/A
E. Block diagram of the property rights and control relationship between the Company and thecontrolling shareholders
√Applicable □N/A
4.2 The actual controller
A. Legal person
√Applicable □N/A
| Name | State-owned Assets Supervision and Administration Commission of Guizhou Province |
| The person in charge or the legal representative of the entity | Xiao Kailin |
B. Natural persons
□Applicable √N/A
C. Special instructions for the fact that the Company does not have an actual controller
□Applicable √N/A
D. Explanation on the change of the Company’s control during the reporting period
□Applicable √N/A
E. Block diagram of the property rights and control relationship between the Company and theactual controller
√Applicable □N/A
China Kweichow Moutai Distillery (Group)Co., Ltd.Kweichow Moutai Co., Ltd.
Kweichow Moutai Co., Ltd.State-owned Assets Supervision and Administration
Commission of Guizhou Province
State-owned Assets Supervision and Administration
Commission of Guizhou ProvinceChina Kweichow Moutai Distillery (Group) Co., Ltd.
China Kweichow Moutai Distillery (Group) Co., Ltd.Kweichow Moutai Co., Ltd.
F. The actual controller controls the Company through trust or other asset management methods
□Applicable √N/A
4.3 Other information about the controlling shareholder and actual controller
□Applicable √N/A
5. The accumulative number of pledged shares of the Company’s controlling shareholder or thelargest shareholder and its persons acting in concert account for more than 80% of theCompany’s shares held by them
□Applicable √N/A
6. Other legal person shareholders holding more than 10% of the shares
□Applicable √N/A
7. Explanation of share restriction and reduction
□Applicable √N/A
8. The specific implementation of share repurchase during the reporting period
□Applicable √N/A
Section VIII Preferred Shares
□Applicable √N/A
Section IX Information about Bond
1. Corporate bonds, company bonds and non-financial corporate debt financing instruments
□Applicable √N/A
2. Convertible corporate bonds
□Applicable √N/A
Section X Financial Report
1. Audit report
√Applicable □N/A
2. Financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 31, 2022Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | Notes | December 31, 2022 | December 31, 2021 |
| Current assets: | |||
| Cash and Cash equivalents | 58,274,318,733.23 | 51,810,243,607.11 | |
| Settlements Provision | |||
| Loans to banks and other financial institutions | 116,172,711,554.59 | 135,067,287,778.03 | |
| Financial assets held for trading | |||
| Derivative financial assets | |||
| Notes receivable | 105,453,212.00 | ||
| Accounts receivable | 20,937,144.00 | ||
| Financing receivables | |||
| Prepayments | 897,377,162.27 | 389,109,841.28 | |
| Insurance premium receivable | |||
| Due from reinsurers | |||
| Reinsurance contract reserves receivable | |||
| Other receivables | 31,818,622.84 | 33,158,974.32 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Financial assets purchased under agreements to resell | |||
| Inventories | 38,824,374,236.24 | 33,394,365,084.83 | |
| Contract assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | 2,123,601,333.33 | ||
| Other current assets | 160,843,674.42 | 71,527,560.74 | |
| Total current assets | 216,611,435,672.92 | 220,765,692,846.31 | |
| Non-current assets: | |||
| Loans and advances | 4,134,744,407.92 | 3,425,175,000.00 | |
| Debt investment | 380,685,319.09 | 170,468,623.71 | |
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | |||
| Other equity instruments investments | |||
| Other non-current financial assets | |||
| Investment properties | 5,335,046.99 | 5,242,431.75 | |
| Fixed assets | 19,742,622,547.86 | 17,472,173,182.85 | |
| Construction in progress | 2,208,329,892.95 | 2,321,988,541.82 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use asset | 402,551,533.46 | 362,785,970.23 | |
| Intangible assets | 7,083,177,226.45 | 6,208,358,330.24 | |
| Development expenditures | 190,536,632.60 | ||
| Goodwill | |||
| Long-term prepaid expenses | 146,455,346.90 | 139,342,455.82 | |
| Deferred tax assets | 3,458,931,368.11 | 2,237,206,443.84 | |
| Other non-current assets | 2,059,761,333.33 | ||
| Total non-current assets | 37,753,369,322.33 | 34,402,502,313.59 | |
| Total assets | 254,364,804,995.25 | 255,168,195,159.90 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Borrowing from the central bank | |||
| Deposits and balances from banks and other financial institutions | |||
| Financial liabilities held for trading | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 2,408,371,053.69 | 2,009,832,495.56 | |
| Receipts in advance | |||
| Contract liabilities | 15,471,920,924.98 | 12,718,465,288.02 | |
| Financial assets sold under agreements to buy | |||
| Customer deposits and balances from banks and other financial institutions | 12,874,043,355.42 | 21,763,575,647.32 | |
| Customer brokerage deposits | |||
| Securities underwriting brokerage deposits | |||
| Payroll and employee benefits payable | 4,782,311,242.41 | 3,677,845,718.53 | |
| Taxes payable | 6,896,555,423.83 | 11,979,802,144.01 | |
| Other payables | 4,543,842,833.87 | 4,124,404,781.29 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Fees and commission payable | |||
| Payable reinsurance | |||
| Liabilities classified as held for sale | |||
| Current portion of non-current liabilities | 109,351,155.28 | 104,319,886.87 | |
| Other current liabilities | 1,979,272,808.90 | 1,535,976,293.22 | |
| Total current liabilities | 49,065,668,798.38 | 57,914,222,254.82 | |
| Non-current liabilities: | |||
| Insurance reserves | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preference share | |||
| Perpetual debt | |||
| Lease liabilities | 334,447,942.79 | 296,466,199.74 | |
| Long-term Payable | |||
| Long-term payroll and employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 334,447,942.79 | 296,466,199.74 | |
| Total liabilities | 49,400,116,741.17 | 58,210,688,454.56 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital | 1,256,197,800.00 | 1,256,197,800.00 | |
| Other equity instruments | |||
| Including: Preference share | |||
| Perpetual debt | |||
| Capital reserve | 1,374,964,415.72 | 1,374,964,415.72 | |
| Less: treasury shares | |||
| Other comprehensive income | -10,776,907.33 | -13,017,880.78 | |
| Special reserve | |||
| Surplus reserve | 32,522,779,178.88 | 25,142,832,818.16 | |
| General reserve | 1,061,529,724.00 | 1,061,529,724.00 | |
| Retained earnings | 161,301,978,184.73 | 160,716,861,920.19 | |
| Equity attributable to owners of the parent | 197,506,672,396.00 | 189,539,368,797.29 | |
| Non-controlling interests | 7,458,015,858.08 | 7,418,137,908.05 | |
| Total shareholders’ equity | 204,964,688,254.08 | 196,957,506,705.34 | |
| Total liabilities and shareholders' equity | 254,364,804,995.25 | 255,168,195,159.90 | |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
COMPANY STATEMENT OF FINANCIAL POSITION
December 31, 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | Notes | December 31, 2022 | December 31, 2021 |
| Current assets: | |||
| Cash and Cash equivalents | 69,397,227,501.61 | 79,115,779,990.88 | |
| Financial assets held for trading | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 20,670,923,010.62 | 1,480,080,983.77 | |
| Financing receivables | |||
| Prepayments | 883,947,665.69 | 355,933,658.53 | |
| Other receivables | 15,092,761.22 | 9,210,501.43 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventories | 37,214,843,706.27 | 32,424,250,538.15 | |
| Contract assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | 2,123,601,333.33 | ||
| Other current assets | 127,580,648.65 | 74,711.92 | |
| Total current assets | 130,433,216,627.39 | 113,385,330,384.68 | |
| Non-current assets: | |||
| Debt investment | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 1,624,535,587.55 | 1,624,535,587.55 | |
| Other equity instruments investments | |||
| Other non-current financial assets | |||
| Investment properties | |||
| Fixed assets | 19,278,963,775.03 | 16,992,010,693.65 | |
| Construction in progress | 2,151,379,751.61 | 2,280,929,738.91 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use asset | 207,871,591.22 | 249,696,982.21 | |
| Intangible assets | 7,077,311,242.16 | 6,207,018,624.16 | |
| Development expenditures | 190,536,632.60 | ||
| Goodwill | |||
| Long-term prepaid expenses | 127,500,000.29 | 137,500,000.25 | |
| Deferred tax assets | 699,632,491.95 | 639,335,397.34 | |
| Other non-current assets | 2,059,761,333.33 | ||
| Total non-current assets | 31,357,731,072.41 | 30,190,788,357.40 | |
| Total assets | 161,790,947,699.80 | 143,576,118,742.08 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Financial liabilities held for trading | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 2,407,574,612.21 | 1,859,402,871.20 | |
| Receipts in advance | |||
| Contract liabilities | 1,179,446.26 | 142,568.14 | |
| Payroll and employee benefits payable | 4,617,577,969.34 | 3,551,461,301.23 | |
| Taxes payable | 3,875,939,323.83 | 6,857,150,756.70 | |
| Other payables | 1,938,855,202.90 | 1,374,157,867.96 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Liabilities classified as held for sale | |||
| Current portion of non-current liabilities | 60,493,144.20 | 63,501,723.59 | |
| Other current liabilities | 153,328.01 | 18,533.86 | |
| Total current liabilities | 12,901,773,026.75 | 13,705,835,622.68 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preference share | |||
| Perpetual debt | |||
| Lease liabilities | 195,899,845.16 | 225,090,785.68 | |
| Long-term Payable | |||
| Long-term payroll and employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 195,899,845.16 | 225,090,785.68 | |
| Total liabilities | 13,097,672,871.91 | 13,930,926,408.36 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital | 1,256,197,800.00 | 1,256,197,800.00 | |
| Other equity instruments | |||
| Including: Preference share | |||
| Perpetual debt | |||
| Capital reserve | 1,374,303,082.72 | 1,374,303,082.72 | |
| Less: treasury shares | |||
| Other comprehensive income | |||
| Special reserve | |||
| Surplus reserve | 32,522,779,178.88 | 25,142,832,818.16 | |
| Retained earnings | 113,539,994,766.29 | 101,871,858,632.84 | |
| Total shareholders’ equity | 148,693,274,827.89 | 129,645,192,333.72 | |
| Total liabilities and shareholders' equity | 161,790,947,699.80 | 143,576,118,742.08 | |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | Notes | 2022 | 2021 |
| I. Total revenue | 127,553,959,355.97 | 109,464,278,563.89 | |
| Including: Operating revenue | 124,099,843,771.99 | 106,190,154,843.76 |
| Interest income | 3,454,115,583.98 | 3,274,123,720.13 | |
| Net earned premiums | |||
| Net fee and commission revenue | |||
| II. Total operating costs | 39,748,309,616.85 | 34,776,902,467.47 | |
| Including: Operating costs | 10,093,468,616.63 | 8,983,377,809.96 | |
| Interest expenses | 105,584,206.24 | 173,897,197.98 | |
| Fees and commission expenses | 143,141.51 | 115,082.12 | |
| Surrenders | |||
| Net payments for insurance claims | |||
| Net provision of insurance reserve | |||
| Policyholder dividends | |||
| Reinsurance expenses | |||
| Taxes and surcharges | 18,495,818,534.22 | 15,304,469,070.03 | |
| Selling expenses | 3,297,724,190.94 | 2,737,369,434.78 | |
| General and administrative expenses | 9,012,191,073.63 | 8,450,274,065.03 | |
| R&D expenses | 135,185,680.40 | 61,923,213.59 | |
| Financial expenses | -1,391,805,826.72 | -934,523,406.02 | |
| Including: Interest expense | 12,023,204.77 | 13,529,867.76 | |
| Interest income | 1,475,422,303.64 | 944,578,412.02 | |
| Add: Other income | 24,505,353.83 | 20,515,911.19 | |
| Investment income/(loss) | 63,840,000.00 | 58,255,937.39 | |
| Including: Share of profits or loss of associates and joint ventures | |||
| Gain from derecognition of financial assets measured at amortized cost | |||
| Exchange gains or losses | |||
| Net exposure hedging gains/ (losses) | |||
| Gain/ (loss) on the changes in fair value | -2,244,726.29 | ||
| Credit impairment losses | -14,686,546.25 | -13,022,441.19 | |
| Assets impairment losses | |||
| Gain/ (loss) from disposal of assets | 213,235.69 | ||
| III. Operating profit | 87,879,521,782.39 | 74,750,880,777.52 | |
| Add: Non-operating income | 70,852,285.40 | 68,989,219.74 | |
| Less: Non-Operating expenses | 248,884,319.61 | 291,838,102.50 | |
| IV. Profit/(loss) before tax | 87,701,489,748.18 | 74,528,031,894.76 | |
| Less: Income tax expense | 22,326,352,981.43 | 18,807,501,938.30 | |
| V. Net profit /(loss) | 65,375,136,766.75 | 55,720,529,956.46 | |
| (1) Categorized by operation continuity | |||
| 1. Net profit from continuing operations | 65,375,136,766.75 | 55,720,529,956.46 | |
| 2. Net profit from discontinuing operations | |||
| (2) Categorized by ownership | |||
| 1. Net profit attributable to owners of the parent | 62,716,443,738.27 | 52,460,144,378.16 | |
| 2. Net profit attributable to non-controlling interests | 2,658,693,028.48 | 3,260,385,578.30 | |
| VI. Other comprehensive income, net of tax | 2,240,973.45 | -7,686,513.03 | |
| (1) Other comprehensive income, net of tax, attributable to owners of the parent | 2,240,973.45 | -7,686,513.03 | |
| 1. Other comprehensive income that will not be reclassified to profit or loss | |||
| 1.1 Remeasurement gains or losses of a defined benefit plan | |||
| 1.2 Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
| 1.3 Changes in fair value of other equity instrument investments | |||
| 1.4 Changes in fair value of enterprise’s own credit risk | |||
| 2. Other comprehensive income to be reclassified to profit or loss | 2,240,973.45 | -7,686,513.03 | |
| 2.1 Other comprehensive income that can be reclassified to profit or loss in equity method | |||
| 2.2 Changes in fair value of other debt investments | |||
| 2.3 Amount of financial assets reclassified into other comprehensive income | |||
| 2.4 Provision for credit impairment of other debt investments | |||
| 2.5 Cash flow hedging reserves | |||
| 2.6 Exchange differences on translation of foreign currency financial statements | 2,240,973.45 | -7,686,513.03 | |
| 2.7 Others | |||
| (2) Other comprehensive income, net of tax, attributable to non-controlling interests | |||
| VII. Total comprehensive income | 65,377,377,740.20 | 55,712,843,443.43 | |
| (1) Total comprehensive income attributable to owners of the parent | 62,718,684,711.72 | 52,452,457,865.13 | |
| (2) Total comprehensive income attributable to non-controlling interests | 2,658,693,028.48 | 3,260,385,578.30 | |
| VIII. Earnings per share | |||
| (1) Basic earnings per share (CNY / share) | 49.93 | 41.76 | |
| (2) Diluted earnings per share (CNY / share) | 49.93 | 41.76 | |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
INCOME STATEMENT OF COMPANYFor the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | Notes | 2022 | 2021 |
| I. Total revenue | 71,301,796,876.93 | 37,344,898,964.17 | |
| Less: Total operating costs | 10,420,242,137.46 | 8,991,912,828.37 | |
| Taxes and surcharges | 17,592,050,587.39 | 14,172,007,646.53 | |
| Selling expenses | 838,175,269.31 | 562,890,060.03 | |
| General and administrative expenses | 8,342,403,894.00 | 7,891,014,092.82 | |
| Research and development expenses | 135,185,680.40 | 61,923,213.59 | |
| Finance expenses | -1,363,150,442.27 | -1,229,581,298.58 | |
| Including: Interest expenses (expressed with positive value) | 7,612,746.94 | 9,093,212.00 | |
| Interest income (expressed with positive value) | 1,437,004,178.70 | 1,228,595,916.86 | |
| Add: Other income | 9,460,960.94 | 6,279,409.80 | |
| Investment income/(loss) | 47,660,330,707.35 | 44,799,409,723.82 | |
| Including: Share of profits or loss of associates and joint ventures | |||
| Gain from derecognition of financial assets measured at amortized cost | |||
| Net exposure hedging gains/ (losses) |
| Gain/ (loss) on the changes in fair value | -2,244,726.29 | ||
| Credit impairment losses | 2,489,064.82 | -85,848.47 | |
| Assets impairment losses | |||
| Gain/ (loss) from disposal of assets | 343,183.91 | ||
| II. Operating profit/Loss | 83,009,513,667.66 | 51,698,090,980.27 | |
| Add: Non-operating income | 66,605,379.09 | 51,287,742.20 | |
| Less: Non-operating expenses | 242,611,517.77 | 265,265,782.93 | |
| III.Profit/(loss) before tax | 82,833,507,528.98 | 51,484,112,939.54 | |
| Less: Income tax expense | 9,034,043,921.80 | 1,805,010,847.21 | |
| IV. Net profit /(loss) | 73,799,463,607.18 | 49,679,102,092.33 | |
| (1) Net profit from continuing operations | 73,799,463,607.18 | 49,679,102,092.33 | |
| (2) Net profit from discontinuing operations | |||
| V. Other comprehensive income, net of tax | |||
| (1) Other comprehensive income, net of tax | |||
| 1. Other comprehensive income that will not be reclassified to profit or loss | |||
| 2. Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
| 3. Changes in fair value of other equity instrument investments | |||
| 4. Changes in fair value of enterprise’s own credit risk | |||
| (2) Other comprehensive income to be reclassified to profit or loss | |||
| 1. Other comprehensive income that can be reclassified to profit or loss in equity method | |||
| 2. Changes in fair value of other debt investments | |||
| 3. Amount of financial assets reclassified into other comprehensive income | |||
| 4. Provision for credit impairment of other debt investments | |||
| 5. Cash flow hedging reserves | |||
| 6. Exchange differences on translation of foreign currency financial statements | |||
| 7. Others | |||
| VI. Total comprehensive income | 73,799,463,607.18 | 49,679,102,092.33 | |
| VII. Earnings per share | |||
| (1) Basic earnings per share (CNY / share) | 58.75 | 39.55 | |
| (2) Diluted earnings per share (CNY / share) | 58.75 | 39.55 | |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | Notes | 2022 | 2021 |
| I. Cash flows from operating activities | |||
| Cash receipts from the sale of goods and the rendering of services | 140,691,678,592.00 | 119,320,536,796.65 | |
| Net increase in customer bank deposits and due to banks and other financial institutions | -8,916,033,228.67 | 7,511,166,145.93 | |
| Net increase in loans from the central bank | |||
| Net increase in funds borrowed from other financial institutions | |||
| Cash premiums received on original insurance contracts | |||
| Net cash received from re-insurance business | |||
| Net increase in deposits and investments from insurers | |||
| Cash received from interest, fees and commission | 3,247,615,476.04 | 3,145,747,032.91 | |
| Net increase in funds deposit | |||
| Net increase in repurchase business funds | |||
| Net income from securities trading brokerage business | |||
| Tax refunds received | 33,191,912.56 | ||
| Cash received relating to other operating activities | 2,759,422,171.88 | 1,643,536,862.48 | |
| Sub-total of cash inflows | 137,815,874,923.81 | 131,620,986,837.97 | |
| Cash paid for purchase of goods and services | 8,357,859,151.03 | 7,745,959,630.90 | |
| Net increase in loans and payments on behalf of customers | 723,778,672.00 | 484,244,272.00 | |
| Net increase in deposits with central bank and other financial institutions | 13,037,761,321.90 | 559,089,326.28 | |
| Payments for claims for original insurance contracts | |||
| Net increase in funds lent | -400,000,000.00 | ||
| Cash paid for interest, fees and commission | 79,226,410.98 | 163,462,728.48 | |
| Commissions on insurance policies paid | |||
| Cash paid to and on behalf of employee | 11,752,241,598.62 | 10,061,366,201.66 | |
| Cash paid for taxes | 62,043,324,506.36 | 44,609,684,025.28 | |
| Cash paid relating to other operating activities | 5,123,087,432.89 | 4,368,504,506.00 | |
| Sub-total of cash outflows | 101,117,279,093.78 | 67,592,310,690.60 | |
| Net cash flows from operating activities | 36,698,595,830.03 | 64,028,676,147.37 | |
| II. Cash flows from investing activities | |||
| Cash received from disposal of investments | 6,079,930.68 | ||
| Cash received from investment income | 5,880,000.00 | 860,000.00 | |
| Net proceeds from disposal of property, plant and equipment, intangible assets and other long-term assets | 355,149.00 | 2,463,474.29 | |
| Cash received from disposal of subsidiaries and other business units | |||
| Cash received relating to other investing activities | 4,971,762.18 | 9,983,452.63 | |
| Sub-total of cash inflows | 11,206,911.18 | 19,386,857.60 | |
| Purchase of property, plant and equipment, intangible assets and other non-current assets | 5,306,546,416.54 | 3,408,784,532.01 | |
| Cash paid for investments | 210,000,000.00 | 2,150,000,000.00 | |
| Net increase in secured loans | |||
| Net cash paid for acquisition of a subsidiary and other operating units | |||
| Cash paid relating to other investing activities | 31,486,829.54 | 23,048,029.93 | |
| Sub-total of cash outflows | 5,548,033,246.08 | 5,581,832,561.94 | |
| Net cash flows from investing activities | -5,536,826,334.90 | -5,562,445,704.34 | |
| III. Cash flows from financing activities | |||
| Cash received from investment | |||
| Including: Cash receipts from capital contributions from non-controlling interests of subsidiaries | |||
| Proceeds from borrowings | |||
| Cash receipts relating to other financing activities | |||
| Subtotal of cash inflows | |||
| Repayments for debts | |||
| Cash payments for distribution of dividends or profit and interest expenses | 57,370,196,191.46 | 26,476,019,839.37 | |
| Including: Dividends or profit paid to non-controlling shareholders of subsidiaries | 2,618,815,078.45 | 2,240,195,683.97 | |
| Cash payments relating to other financing activities | 54,332,788.37 | 88,121,549.59 | |
| Subtotal of cash outflows | 57,424,528,979.83 | 26,564,141,388.96 | |
| Net cash flows from financing activities | -57,424,528,979.83 | -26,564,141,388.96 | |
| IV. Effect of exchange rate changes on cash and cash equivalents | 911,088.01 | -2,026,542.60 | |
| V. Net increase in cash and cash equivalents | -26,261,848,396.69 | 31,900,062,511.47 | |
| Add: Cash and cash equivalents at beginning of year | 178,640,587,379.52 | 146,740,524,868.05 | |
| VI. Cash and cash equivalents at end of year | 152,378,738,982.83 | 178,640,587,379.52 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | Notes | 2022 | 2021 |
| I. Cash flows from operating activities | |||
| Cash receipts from the sale of goods and the rendering of services | 60,627,778,647.24 | 48,582,727,792.21 | |
| Tax refunds received | |||
| Cash received relating to other operating activities | 1,869,230,100.75 | 1,330,181,729.83 | |
| Sub-total of cash inflows | 62,497,008,747.99 | 49,912,909,522.04 | |
| Cash paid for purchase of goods and services | 8,247,604,843.54 | 7,730,438,800.94 | |
| Cash paid to and on behalf of employee | 11,019,897,320.84 | 9,421,372,112.36 | |
| Cash paid for taxes | 37,873,356,637.22 | 17,808,661,856.89 | |
| Cash paid relating to other operating activities | 2,876,686,272.05 | 2,170,307,857.51 | |
| Sub-total of cash outflows | 60,017,545,073.65 | 37,130,780,627.70 | |
| Net cash flows from operating activities | 2,479,463,674.34 | 12,782,128,894.34 | |
| II. Cash flows from investing activities | |||
| Cash received from disposal of investments | 6,079,930.68 | ||
| Cash received from investment income | 47,596,490,707.35 | 44,741,153,786.43 | |
| Net proceeds from disposal of property, plant and equipment, intangible assets and other long-term assets | 317,509.00 | 2,453,676.06 | |
| Cash received from disposal of subsidiaries and other business units | |||
| Cash received relating to other investing activities | 4,971,762.18 | 9,983,452.63 | |
| Sub-total of cash inflows | 47,601,779,978.53 | 44,759,670,845.80 | |
| Purchase of property, plant and equipment, intangible assets and other non-current assets | 5,252,006,054.93 | 3,349,912,221.23 | |
| Cash paid for investments | 2,000,000,000.00 | ||
| Cash Paid for disposal of subsidiaries and other business units | |||
| Cash paid relating to other investing activities | 31,486,829.54 | 23,048,029.93 | |
| Sub-total of cash outflows | 5,283,492,884.47 | 5,372,960,251.16 | |
| Net cash flows from investing activities | 42,318,287,094.06 | 39,386,710,594.64 | |
| III. Cash flows from financing activities | |||
| Cash received from investment | |||
| Proceeds from borrowings | |||
| Cash receipts relating to other financing activities | |||
| Subtotal of cash inflows | |||
| Repayments for debts | |||
| Cash payments for distribution of dividends or profit and interest expenses | 54,751,381,113.01 | 24,235,824,155.40 | |
| Cash payments relating to other financing activities | 19,713,859.66 | 53,056,483.06 | |
| Subtotal of cash outflows | 54,771,094,972.67 | 24,288,880,638.46 | |
| Net cash flows from financing activities | -54,771,094,972.67 | -24,288,880,638.46 | |
| IV. Effect of exchange rate changes on cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | -9,973,344,204.27 | 27,879,958,850.52 | |
| Add: Cash and cash equivalents at beginning of year | 77,933,933,271.80 | 50,053,974,421.28 | |
| VI. Cash and cash equivalents at end of year | 67,960,589,067.53 | 77,933,933,271.80 | |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | 2022 | ||||||||||||||
| Equity attributable to owners of the parent | Non-controlling interests | Total shareholders’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General reserve | Retained earnings | Others | Subtotal | |||||
| preference share | Perpetual debt | Others | |||||||||||||
| 1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,964,415.72 | -13,017,880.78 | 25,142,832,818.16 | 1,061,529,724.00 | 160,716,861,920.19 | 189,539,368,797.29 | 7,418,137,908.05 | 196,957,506,705.34 | ||||||
| Add: changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,964,415.72 | -13,017,880.78 | 25,142,832,818.16 | 1,061,529,724.00 | 160,716,861,920.19 | 189,539,368,797.29 | 7,418,137,908.05 | 196,957,506,705.34 | ||||||
| 3. Increase/(decrease) during the period | 2,240,973.45 | 7,379,946,360.72 | 585,116,264.54 | 7,967,303,598.71 | 39,877,950.03 | 8,007,181,548.74 | |||||||||
| (1) Total comprehensive income | 2,240,973.45 | 62,716,443,738.27 | 62,718,684,711.72 | 2,658,693,028.48 | 65,377,377,740.20 | ||||||||||
| (2) Shareholders’ contributions and reduction | |||||||||||||||
| (i) Shareholders ‘contributions in ordinary share | |||||||||||||||
| (ii) Other equity instruments contributions | |||||||||||||||
| (iii) Amount of share-based payments recognized in equity | |||||||||||||||
| (iv) Others | |||||||||||||||
| (3) Profit distribution | 7,379,946,360.72 | -62,131,327,473.73 | -54,751,381,113.01 | -2,618,815,078.45 | -57,370,196,191.46 | ||||||||||
| (i) Transfer to surplus reserve | 7,379,946,360.72 | -7,379,946,360.72 | |||||||||||||
| (ii) Transfer to general reserve | |||||||||||||||
| (iii) Distribution to shareholders | -54,751,381,113.01 | -54,751,381,113.01 | -2,618,815,078.45 | -57,370,196,191.46 | |||||||||||
| (iv) Others | |||||||||||||||
| (4) Transfer within equity | |||||||||||||||
| (i) Capital reserves converted to share capital | |||||||||||||||
| (ii) Surplus reserves converted to share capital | |||||||||||||||
| (iii) Loss made up by surplus reserves | |||||||||||||||
| (iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||||||
| (v) Other comprehensive income transferred to retained earnings | |||||||||||||||
| (vi) Others | |||||||||||||||
| (5) Special reserve | |||||||||||||||
| (i) Additions | |||||||||||||||
| (ii) Utilisation | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Closing balance | 1,256,197,800.00 | 1,374,964,415.72 | -10,776,907.33 | 32,522,779,178.88 | 1,061,529,724.00 | 161,301,978,184.73 | 197,506,672,396.00 | 7,458,015,858.08 | 204,964,688,254.08 |
| Item | 2021 | ||||||||||||||
| Equity attributable to owners of the parent | Non-controlling interests Capital reserve | Total shareholders’ equity Share capital | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Share capital | Other equity instruments | Capital reserve | Share capital | Other equity instruments | Capital reserve | Share capital | Other equity instruments | |||||
| preference share | Perpetual debt | Others | |||||||||||||
| 1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,964,415.72 | -5,331,367.75 | 20,174,922,608.93 | 927,577,822.67 | 137,594,403,807.99 | 161,322,735,087.56 | 6,397,948,013.72 | 167,720,683,101.28 | ||||||
| Add: changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,964,415.72 | -5,331,367.75 | 20,174,922,608.93 | 927,577,822.67 | 137,594,403,807.99 | 161,322,735,087.56 | 6,397,948,013.72 | 167,720,683,101.28 | ||||||
| 3. Increase/(decrease) during the period | -7,686,513.03 | 4,967,910,209.23 | 133,951,901.33 | 23,122,458,112.20 | 28,216,633,709.73 | 1,020,189,894.33 | 29,236,823,604.06 | ||||||||
| (1) Total comprehensive income | -7,686,513.03 | 52,460,144,378.16 | 52,452,457,865.13 | 3,260,385,578.30 | 55,712,843,443.43 | ||||||||||
| (2) Shareholders’ contributions and reduction | |||||||||||||||
| (i) Shareholders ‘contributions in ordinary share | |||||||||||||||
| (ii) Other equity instruments contributions | |||||||||||||||
| (iii) Amount of share-based payments recognized in equity | |||||||||||||||
| (iv) Others | |||||||||||||||
| (3) Profit distribution | 4,967,910,209.23 | 133,951,901.33 | -29,337,686,265.96 | -24,235,824,155.40 | -2,240,195,683.97 | -26,476,019,839.37 | |||||||||
| (i) Transfer to surplus reserve | 4,967,910,209.23 | -4,967,910,209.23 | |||||||||||||
| (ii) Transfer to general reserve | 133,951,901.33 | -133,951,901.33 | |||||||||||||
| (iii) Distribution to shareholders | -24,235,824,155.40 | -24,235,824,155.40 | -2,240,195,683.97 | -26,476,019,839.37 | |||||||||||
| (iv) Others | |||||||||||||||
| (4) Transfer within equity | |||||||||||||||
| (i) Capital reserves converted to share capital | |||||||||||||||
| (ii) Surplus reserves converted to share capital | |||||||||||||||
| (iii) Loss made up by surplus reserves | |||||||||||||||
| (iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||||||
| (v) Other comprehensive income transferred to retained earnings | |||||||||||||||
| (vi) Others | |||||||||||||||
| (5) Special reserve | |||||||||||||||
| (i) Additions | |||||||||||||||
| (ii) Utilisation | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Closing balance | 1,256,197,800.00 | 1,374,964,415.72 | -13,017,880.78 | 25,142,832,818.16 | 1,061,529,724.00 | 160,716,861,920.19 | 189,539,368,797.29 | 7,418,137,908.05 | 196,957,506,705.34 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
| Item | 2022 | ||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total shareholders’ equity | |||
| preference share | Perpetual debt | Others | |||||||||
| 1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,303,082.72 | 25,142,832,818.16 | 101,871,858,632.84 | 129,645,192,333.72 | ||||||
| Add: changes in accounting policies | |||||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| 2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,303,082.72 | 25,142,832,818.16 | 101,871,858,632.84 | 129,645,192,333.72 | ||||||
| 3. Increase/(decrease) during the period | 7,379,946,360.72 | 11,668,136,133.45 | 19,048,082,494.17 | ||||||||
| (1) Total comprehensive income | 73,799,463,607.18 | 73,799,463,607.18 | |||||||||
| (2) Shareholders’ contributions and reduction | |||||||||||
| (i)Shareholders’ contributions in ordinary share | |||||||||||
| (ii) Other equity instruments contributions | |||||||||||
| (iii) Amount of share-based payments recognized in equity | |||||||||||
| (iv) Others | |||||||||||
| (3). Profit distribution | 7,379,946,360.72 | -62,131,327,473.73 | -54,751,381,113.01 | ||||||||
| (i) Transfer to surplus reserve | 7,379,946,360.72 | -7,379,946,360.72 | |||||||||
| (ii) Distribution to shareholders | -54,751,381,113.01 | -54,751,381,113.01 | |||||||||
| (iii) Others | |||||||||||
| (4) Transfer within equity | |||||||||||
| (i) Capital reserves converted to share capital | |||||||||||
| (ii) Surplus reserves converted to share capital | |||||||||||
| (iii) Loss made up by surplus reserves | |||||||||||
| (iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||
| (v) Other comprehensive income transferred to retained earnings | |||||||||||
| (vi) Others | |||||||||||
| (5). Special reserve | |||||||||||
| (i). Additions | |||||||||||
| (ii). Utilisation | |||||||||||
| (6) Others | |||||||||||
| 4. Closing balance | 1,256,197,800.00 | 1,374,303,082.72 | 32,522,779,178.88 | 113,539,994,766.29 | 148,693,274,827.89 |
| Item | 2021 | ||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total shareholders’ equity | |||
| preference share | Perpetual debt | Others | |||||||||
| 1. Balance at the end of previous year | 1,256,197,800.00 | 1,374,303,082.72 | 20,174,922,608.93 | 81,396,490,905.14 | 104,201,914,396.79 | ||||||
| Add: changes in accounting policies | |||||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| 2. Balance at the beginning of the year | 1,256,197,800.00 | 1,374,303,082.72 | 20,174,922,608.93 | 81,396,490,905.14 | 104,201,914,396.79 | ||||||
| 3. Increase/(decrease) during the period | 4,967,910,209.23 | 20,475,367,727.70 | 25,443,277,936.93 | ||||||||
| (1) Total comprehensive income | 49,679,102,092.33 | 49,679,102,092.33 | |||||||||
| (2) Shareholders’ contributions and reduction | |||||||||||
| (i) Shareholders’ contributions in ordinary share | |||||||||||
| (ii)Other equity instruments contributions | |||||||||||
| (iii) Amount of share-based payments recognized in equity | |||||||||||
| (iv) Others | |||||||||||
| (3). Profit distribution | 4,967,910,209.23 | -29,203,734,364.63 | -24,235,824,155.40 | ||||||||
| (i) Transfer to surplus reserve | 4,967,910,209.23 | -4,967,910,209.23 | |||||||||
| (ii) Distribution to shareholders | -24,235,824,155.40 | -24,235,824,155.40 | |||||||||
| (iii) Others | |||||||||||
| (4) Transfer within equity | |||||||||||
| (i) Capital reserves converted to share capital | |||||||||||
| (ii) Surplus reserves converted to share capital | |||||||||||
| (iii) Loss made up by surplus reserves | |||||||||||
| (iv) Changes in the defined benefit plan transferred to retained earnings | |||||||||||
| (v) Other comprehensive income transferred to retained earnings |
| (vi) Others | |||||||||||
| (5). Special reserve | |||||||||||
| (i). Additions | |||||||||||
| (ii). Utilisation | |||||||||||
| (6) Others | |||||||||||
| 4. Closing balance | 1,256,197,800.00 | 1,374,303,082.72 | 25,142,832,818.16 | 101,871,858,632.84 | 129,645,192,333.72 |
Legal Representative: Ding XiongjunChief Accountant: Jiang YanHead of the Accounting Department: Cai Congying
3. Company Profile
3.1 Company Overview
√Applicable □N/A
Kweichow Moutai Co., Ltd. is established after being approved by Guizhou Provincial People’sGovernment in its document of (1999) No. 291, Reply on Approving the Establishment of KweichowMoutai Co., Ltd. As an incorporated company, its main promoter is China Kweichow Moutai Distillery(Group) Co., Ltd., with Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.,Guizhou Textile Collective Industry Association, Research Institute of Tsinghua University in Shenzhen,China National Research Institute of Food and Fermentation Industries, Beijing Sugar Tobacco & LiquorGroup Co., Ltd., Jiangsu CANDY & LIQUOR & TOBACCO Parent Co., Shanghai Jieqiang TobaccoSugar & Liquor (Group) Co., Ltd. as co-founders.
The company was established on November 20,1999. Its registered capital at its establishment was CNY185 million. After being approved by CSRC with the document of [2001] No.41 and Ministry of Financewith the document of [2001] No. 56, the corporation publicly offered 71,500,000 A shares (including6,500,000 state-owned shares) at Shanghai Stock Exchange on July 31, 2001, marking a total capital ofits shares at 250,000,000 shares. On August 20, 2001, the corporation completed registration foralternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited andapproved by the 2001 Annual General Meeting, the corporation set the total share capital at the end of2001- 250,000,000 shares as the baseline, and distributed dividends (CNY 6 every 10 shares, tax inclusive)to all shareholders, and converted capital reserves into increased share capital at a 10:1 ratio, totallyincreasing 25,000,000 shares. After this profit distribution, the total capital share increased from250,000,000 shares to 275,000,000 shares. On February 13, 2003, the corporation completed registrationfor alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution audited and approved by the 2002 Annual General Meeting,the corporation set the total share capital at the end of 2002- 275,000,000 shares as the baseline, anddistributed dividends (CNY 2 every 10 shares, tax inclusive) to all shareholders. With the same baseline,the corporation distributed bonus shares (1 bonus share every 10 share) to all shareholders. After this profitdistribution, the total capital share increased from 275,000,000 shares to 302,500,000 shares. On June 10,2004, the corporation completed registration for alternation of registered capital from Administration forIndustry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited andapproved by the 2003 Annual General Meeting, the corporation set the total share capital at the end of2003- 302,500,000 shares as the baseline, and distributed dividends (CNY 3 every 10 shares, tax inclusive)to all shareholders, and converted capital reserves into increased share capital at a 10:3 ratio. After thisprofit distribution, the total capital share increased from 302,500,000 shares to 393,250,000 shares. OnJune 24, 2005, the corporation completed registration for alternation of registered capital fromAdministration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited andapproved by the 2004 Annual General Meeting, the corporation set the total share capital at the end of2004- 393,250,000 shares as the baseline, and distributed dividends (CNY 5 every 10 shares, tax inclusive)to all shareholders, and converted capital reserves into increased share capital at a 10:2 ratio. After thisprofit distribution, the total capital share increased from 393,250,000 shares to 471,900,000 shares. OnJanuary 11, 2006, the corporation completed registration for alternation of registered capital fromAdministration for Industry& Commerce of Guizhou Province.
According to the Reform Plan of Equity Division of Kweichow Moutai Co., Ltd. (Revised Version) auditedand approved by the second provisional General Meeting and the Meeting of relevant shareholders, thecorporation set the total share capital at the end of 2005- 471,900,000 shares as the baseline, and convertedevery 10 capital reserves into 10 increased share capital. After this profit distribution, the total capital
share increased from 471,900,000 shares to 943,800,000 shares. On November 17,2006, the corporationcompleted registration for alternation of registered capital from Administration for Industry& Commerceof Guizhou Province.
According to the 2010 annual plan for profit distribution audited and approved by the 2010 Annual GeneralMeeting, the corporation set the total share capital at the end of 2010- 943,800,000 shares as the baseline,and distributed dividends (CNY 23 every 10 shares, tax inclusive) and bonus share (1 bonus share forevery 10 shares) to all shareholders. After this profit distribution, the total capital share increased from943,800,000 shares to 1,038,180,000 shares. On October 27, 2011, the corporation completed registrationfor alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the 2013 annual plan for profit distribution audited and approved by the 2013 Annual GeneralMeeting, the corporation set the total share capital at the end of 2013- 1,038,180,000 shares as the baseline,and distributed dividends (CNY 43.74 every 10 shares, tax inclusive) and bonus share (1 share every 10shares) to all shareholders. After this profit distribution, the total capital share increased from1,038,180,000 shares to 1,141,998,000 shares. On August 5, 2014, the corporation completed registrationfor alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the 2014 annual plan for profit distribution audited and approved by the 2014 Annual GeneralMeeting, the corporation set the total share capital at the end of 2014- 1,141,998,000 shares as the baseline,and distributed dividends (CNY 43.74 every 10 shares, tax inclusive) and bonus share (1 share every 10shares) to all shareholders. After this profit distribution, the total capital share increased from 1,141,998,000 shares to 1,256,197,800 shares. On October 29,2015, the corporation completed registration foralternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
The corporate’s business scope includes: production and marketing of Moutai liquor and liquors of series,production and marking of beverage, food and package materials, the development of anti-counterfeittechnology and the research and development of IT-related products, the service of management of hotel,housing, catering, entertainment, bath and parking lot, and vehicle transporting (dangerous chemicals notincluded) and maintenance.
3.2 Scope of consolidated financial statements
√Applicable □N/A
This year, eight subsidiaries were included in the consolidated financial statement, including GuizhouMoutai Chiew Import And Export Co., Ltd., Guizhou Xijiu Sales Co., Ltd., Kweichou Moutai GroupFinance Co., Ltd., Moutai Custom Marketing (Guizhou) Co., Ltd., Beijing Friendship Messenger TradingCo., Ltd., Kweichow Moutai Paris Trading, Guizhou Laymau Liquor Industry Co., Ltd. and KweichowMoutai-Flavor Liquor Marketing Co., Ltd.
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.
4.2 Going concern
√Applicable □N/A
Since the date of this report, there are no events resulting in significant uncertainties over going concernof the operation of this company for at least 12 months.
5. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√Applicable □N/A
5.1 Statement of compliance with accounting standards for business enterprisesThe financial statements have been prepared in accordance with the requirements of accounting standardsfor business enterprises, which truly and completely reflect the Company’s financial status, operatingresults, changes in shareholders’ equity, cash flow and other relevant information.
5.2 Accounting period
The accounting year of the Company is from 1 January to 31 December.
5.3 Operating cycle
√Applicable □N/A
The Company sets 12 months as an operating cycle.
5.4 Reporting Currency
The Company’s functional currency is CNY.
5.5 Accounting treatments of “Business combination involving entities under common control” and
“Business combination involving entities not under common control”
√Applicable □N/A
(1) Business combination involving entities under common control
For business combination involving entities under common control, assets and liabilities obtained by thecombining party through business combination shall be measured at the book value of the combinedcompany at the combination date. The capital reserve (stock premium or capital premium) is adjustedaccording to the difference between the book value of net asset acquired through combination and thebook value of consideration paid for the combination (or total par value of shares issued). If the capitalreserve (stock premium or capital premium) is insufficient to offset, the retained earnings shall be adjusted.
(2) Business combination not under common control
For business combination involving entities not under common control, the combination cost is calculatedat fair value of the assets, liabilities incurred or assumed and the equity securities issued by the combiningparty on combination date in the purpose of gaining the combined party’s control. For businesscombination involving entities not under common control that are achieved step by step in multipleexchanges and transactions, different approaches in accounting treatment are adopted for individualfinancial statements and combination financial statements as follows.A. For individual financial statements, the initial investment cost of the investment is calculated as thesum of the book value of the combined party’s equity investment held by the combining party before thecombination date and the increased investment cost on the combination date. If the combined party’sequity held by the combining party entails other comprehensive profits, then the profits (e.g. the part ofthe difference of fair value of saleable financial assets that is calculated in capital reserves, the same forthe follows) shall be calculated as the investment profits of the current period.
B. For combination financial statements, the combined party’s equity held by the combining party beforethe combination date shall be recalculated in fair value of the equity on combination date. The margin ofits fair value and book value shall be calculated into the investment profits of the current period. If thecombined party’s equity held by the combining party entails other comprehensive profits, then the profitsshall be calculated as the investment profits of the current period of the combination date. Fees,commissions, and other transaction expenses and other relevant administration expense paid forcombination shall be calculated into current profits or losses as they occur. Transaction fees of equitysecurities and debt securities paid by the combining party for combination consideration shall be includedin the initial measurement amount of equity or debt securities. The Company shall recognize the differenceof the combination costs in excess of the fair value of the net identifiable asset acquired from the acquireethrough combination as goodwill. After the review, if the combination costs are still in short of the fair
value of the net identifiable asset acquired from the acquiree through combination, include the differencein the current profits or losses.
5.6 Base of consolidated financial statements
√Applicable □N/A
The combination financial statements of the Company comply with ‘Norms for Enterprise AccountingNo.33- Combination Financial Statements’ and relevant regulations. At combination, all major internaltransactions and businesses within combination rage have been offset. The subsidy’s shareholder’s equitythat is not owned by the parent company shall be listed individually in the shareholder’s equity item in thecombination financial statements as minor shareholder equity. When composing combination financialstatements, necessary adjustments shall be made according to the Company’s accounting policies andaccounting period if the accounting policies and accounting period of the subsidiary corporation isdifferent from those of the Company. For subsidiary corporations acquired by combination under commoncontrol, their operating results and cash flow shall be included in the financial statement in the currentperiod. Adjustments shall be made in relevant projects in the last year’s financial statements. The statemententity formed after the combination remains since the ultimate controlling part takes control. Forsubsidiary corporations acquired by combination not under common control, their operating results andcash flow shall be included in the financial statement since the Company takes control.
5.7 Cash and cash equivalents
Cash equivalents include Cash on hand, Bank balances, other monetary funds, provision at central bankretrievable at any time, deposits with other banks, placements with banks, buying securities and returnsale within the same industry and other investments featuring short investment period (generally duewithin three months since purchase), high mobility, easy convertibility to cash with known amount andlow risk of value change.
5.8 Foreign operations and foreign currency translation
√Applicable □N/A
(1) Foreign currency operations
The amount in the foreign currency shall be translated into CNY currency according to the middle rate ofexchange rate in foreign currency market on the day of transaction. At the end of the period, the balanceof monetary foreign currency account shall be translated into CNY currency according to the middle rateof exchange rate at the end of the period. The difference between the translated CNY balance and theoriginal book balance shall be calculated as exchange gains or lost, and recorded into items like ‘financeexpense’ and ‘construction in progress’. For non-monetary foreign currency projects calculated withhistorical cost, the spot exchange rate on transaction day is employed, and the amount of reportingcurrency stay unchanged.
(2) Foreign currency translation
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance sheetdate. Shareholders’ equity items, except for the item of “undistributed profits”, are translated at the spotexchange rates on the dates when the transactions occur. Revenue and expense items in the incomestatement are translated at the spot exchange rates on the dates when the transactions occur or at theexchange rate determined in a systematical and reasonable method and similar to the spot exchange rateon the day when the transactions occur. Differences arising from the above translations of foreign currencyfinancial statements are separately listed under other comprehensive income in the consolidated balancesheet. Cash flow projects operated overseas shall be translated at approximate exchange rate of spot rateon the date of cash flow. The amount of cash affected by fluctuations of exchange rate shall be separatelylisted in the table of cash flow.
5.9 Financial instruments
√Applicable □N/A
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract, the related financial asset orfinancial liability should be recognized. Transaction of financial assets by regular means shall berecognized and derecognized according to accounting on transaction date. Regular means refers to gainingor giving financial assets within the time period designated by law or regulations according to contractitems. Transaction date refers to the date that the Company promises to purchase or sell financial assets.
Derecognition of financial assets (or part of financial assets) shall be conducted- written off from theaccount and asset liability list, if it meets following conditions: A. expiration of the right to acquire cashflow of financial assets; B. Transfer of the right to obtain cash flow of financial assets, and (a) substantivelytransferring almost all risks and rewards of the possession of financial assets, or (b) though substantivelyneither transferring nor retaining almost all risks and rewards of the possession of financial assets,relinquishing the control over the financial assets.
(2) Classification and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics offinancial assets, the Company classifies financial assets into: financial assets measured at amortized cost;financial assets measured at fair value with their changes included into other comprehensive income; andfinancial assets measured at fair value with their changes included into current profits/losses. Thefollowing measurement of financial assets depends on its classification.
A. Financial assets measured at amortized cost
The business model in which the Company manages financial assets measured at amortized cost aims toreceive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financialassets are consistent with basic borrowing and lending arrangements, which means that cash flowgenerated on a specific date serves only as payment for principal and interests based on the amount ofunpaid principal. The Company adopts the effective interest method for such financial interests, performssubsequent measurement of them at amortized cost, and includes the gains or losses from derecognition,changes or impairment of them into current profits/losses.
B. Financial assets at fair value at fair value through other comprehensive income
The financial assets that meet the following conditions are of this category: The business model in whichthe Company manages such financial assets both aims to receive contract cash flow and for the purposeof sale; furthermore, the characteristics of the contract cash flow of such financial assets are consistentwith basic borrowing and lending arrangements. The Company measure such financial assets at fair valueand include their changes into other comprehensive income, but record impairment losses or gains,exchange gains or losses and interest income calculated in the effective interest method into currentprofits/losses.
C. Equity instrument investments at fair value at fair value through other comprehensive incomThe Company irrevocably chooses to designate part of non-transactional equity instrument investments asfinancial assets calculated with fair value whose changes are included in other comprehensive income,and only relevant dividend income is calculated into current profits or losses. Changes in fair value arerecognized as other comprehensive income. When the financial asset is derecognized, cumulative gainsor losses should be transferred into retained earnings.
D. Financial assets at fair value at fair value through current profits/losses
For financial assets other than the above financial assets measured at amortized cost and financial assetsmeasured at fair value with their changes included into other comprehensive income, the Companyclassifies them as financial assets measured at fair value with their changes included into currentprofits/losses. In addition, at the initial recognition, the Company specifies partial financial assets asfinancial assets measured at fair value with their changes included into current profits/losses, in order to
eliminate or substantially reduce accounting mismatch. For such financial assets, the Company performssubsequent measurement using fair value and records changes in the fair value into current profits/losses.When and only when the Company changes its business mode for management of financial assets, will beinfluenced relevant financial assets be reclassified. For financial assets measured at fair value with theirchanges included into current profits/losses, relevant transaction fees are calculated into current profits orlosses; while for other financial assets, relevant transaction fees are included into the initial recognitionamount.
(3) Classification and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at amortizedcost and financial liabilities measured at fair value with their changes included into current profits or losses.
Financial liabilities meeting the following conditions are specified as financial liabilities measured at fairvalue with their changes included into current profits or losses at initial measurement: (A) Thespecification can eliminate or notably reduce account mismatch; (B) Based on risk management orinvestment strategy from official documents, management and business evaluation are conducted onfinancial liability combination or financial asset and financial liability combination on the basis of fairvalue, which are reported to key management personnel inside the company; (C) The financial liabilitiesinclude embedded derivatives that need to be separated.
The Company recognize the classification of financial liabilities at initial recognition. For financialliabilities measured at fair value with their changes included into current profits or losses, relevanttransaction fees are calculated into current profits or losses; while for other financial liabilities, relevanttransaction fees are included into the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
A. Financial liabilities measured at amortized cost
For financial liabilities of this category, effective interest rate is adopted, and subsequent measurement isperformed at amortized cost.
B. Financial liabilities measured at fair value with their changes included into current profits or losses
Financial liabilities measured at fair value with their changes included into current profits/losses includetrading financial liabilities (including derivatives classified as financial liabilities) and the financialliabilities specified to be measured at fair value with their changes included into current profits/losses atthe initial recognition.
(4) Offsetting of financial instruments
Financial assets and financial liabilities meeting the following conditions simultaneously shall be listed inbalance sheet in their net amounts after manual offset: The Company has the legal right to offsetrecognized financial assets and financial liabilities and may execute the legal right currently andsimultaneously; The Company plans to settle or simultaneously encash the financial assets in net amountsand pay off the financial liabilities.
(5) Impairment of financial assets
For financial assets measured at amortized cost and debt instrument investment measured at fair valuewith its changes included into other comprehensive income, the Company recognizes the provision forloss based on the expected credit loss.
When assessing expected credit loss, the Company considers reasonable and well-founded information onpast matters, present conditions and forecast of future economic conditions, sets the risk of default as the
weight, and calculates the weighted amount of the difference of present value between the cash flowaccording to the contract and the cash flow expected to be gained in practice.
On each balance sheet date, the Company calculates expected credit loss for financial instruments atdifferent stages. If the credit risk of financial instrument hasn’t substantially increased since the initialrecognition, then it is in the first stage, and the Company will measure the loss provision at the amountequivalent to the expected credit loss for the next 12 months. If the credit risk has substantially increasedsince the initial recognition without credit impairment, then the financial instrument is in the second stage,and the Company will measure the loss provision at the amount equivalent to the expected credit loss forthe entire duration. If credit impairment has occurred since the initial recognition, then the financialinstrument is in the third stage, and the Company will measure the loss provision by the amount equivalentto the expected credit loss for the entire duration.
For financial instruments featuring relatively low credit risk on asset balance date, the Company assumesno substantial increase of credit risk since the initial recognition, and will measure the loss provision atthe amount equivalent to the expected credit loss for the next 12 months.
For financial instruments that are in the first stage or second stage, or featuring relatively low credit risk,the Company will calculate the interest income according to the book balance and the effective interestrate without deducting provision. For financial instruments that are in the third stage, the Company willcalculate the interest income according to the amortization cost and the effective interest rate, deductingprovision from the book balance.
For notes receivable and accounts receivable formed in daily operations like sale of product and provisionof labor, regardless of substantial financing component, the Company will measure the loss provision bythe amount equivalent to the expected credit loss for the entire duration
When the information about the expected credit loss of a single financial asset cannot be evaluated at areasonable cost, the Company shall divide the accounts receivables portfolio according to credit riskcharacteristics and measure the expected credit loss based on portfolios. The foundation to determineportfolio and provision means are as follow:
| Bank acceptances portfolios Accounts receivable portfolios | Bank acceptances Accounts receivable of related party within range of merge |
| Other accounts retrievable portfolios Other accounts retrievable portfolios | Other accounts retrievable with lower credit risk (e.g. advances to employees, deposit, security fund) Other accounts retrievable of related party within range of merge |
| Other portfolios | Other accounts apart from above portfolios |
For accounts retrievable divided as portfolio and accounts retrievable formed in daily operations like saleof product and provision of labor, the Company calculates the expected credit loss through the comparativetable of accounts retrievable and accounts retrievable age and the expected credit loss rate over the entireduration based on the current situation and prediction of future economic situation consulting historicalcredit loss experience. For other notes retrievable and accounts retrievable classified as portfolio, thecompany will calculate the expected credit loss through the exposure at default and expected credit lossrate for the following 12 months or over the entire duration based on the current situation and predictionof future economic situation consulting historical credit loss experience.
The Company calculates provision withdrawn or reversed into profits/ losses of the current period. Forliability instruments in fair value whose changes are included in other comprehensive profits, the Companycalculates impairment losses or income into profits/ losses of the current period, while adjusting othercomprehensive profits.
(6) Transfer of financial assets
If almost all the risks and rewards in respect of the ownership of the financial asset are transferred, thefinancial asset shall be derecognized; if they are retained, the financial asset shall not be derecognized.
If almost all the risks and rewards in respect of the ownership of the financial asset are neither transferrednor retained, the Company will conduct further evaluation: If the enterprise does not retain control overthe asset, then its financial assets shall be derecognized, and the rights and obligations produced or retainedduring transfer shall be separately recognized as assets or liabilities. If the enterprise retains control overthe asset, then relevant financial assets shall be recognized according to the degree to which it continuesto be involved in the transferred financial assets, and relevant liabilities shall be recognized.
If the enterprise continues to involve itself by obligation of guarantee for transferred financial assets, thenthe lower one of the book value and guarantee amount of financial assets on transfer date shall be selectedand recognized as the transferred financial assets. The relevant liabilities are determined as the sum ofguarantee amount and fair value of guarantee contract (usually the consideration received from obligationof guarantee). The guarantee amount refers to the highest amount repayable among the considerations anenterprise receives.
5.10 Inventories
√Applicable □N/A
(1) Classification of inventory
Inventories are classified as: raw materials, semi-finished goods, goods in progress, finished goods, andrevolving materials.
(2) Measurement method of dispatched inventories
The planned cost is used for daily accounting of raw materials, and the difference of material cost shouldbe carried forward on a monthly basis to adjust the dispatch cost into the actual cost. The semi-finishedgoods and finished goods shall be accounted according to the actual cost, and the moving weighted averagemethod shall be used in accounting for costs of sales.
(3) Basis to determine net realizable values of inventories and method of write-down of inventoriesAt the end of the period, inventory is measured according to the lower of cost and net realizable value.The difference between cost of one inventory and net realizable value is higher than the write-down ofinventories.
(4) Inventory system
The Company adopts perpetual inventory system
(5) Amortization method of low-cost consumables and packing materials
One-time amortization method is adopted.
5.11 Long-term equity investments
√Applicable □N/A
(1) Judgment criteria of control and significant influence
The majority of long-term equity investments of the Company are investments to subsidiaries. Subsidiariesrefer to invested parties upon which the Company can exert control. Control refers to the fact that theinvesting party has power over the invested party, enjoys variable returns and can influence the returnamount by exercising power over the invested party. The term ‘significant influence’ refers to the powerto participate in decision-making on the financial and operating policies of the investee, but with no controlor joint control over the formulation of these policies.
(2) Determination of the investment cost
A. Long-term equity investments resulting from combination
For business combination under common control, for the long-term equity investments obtained by cashpaid, non-monetary assets paid or assumed liabilities as consideration by the acquirer, on the merger date,the initial investment cost of long-term equity investment shall be taken as the share of the owner’s equityof the investee in the book value of the final control party’s consolidated financial statements. Accordingto the margin amount between initial investment cost and cash payment, non-monetary asset paid orassumed liabilities, capital reserve should be written down. If the capital reserve is not sufficient to bewritten down, then the retained earnings shall be written down. For investments obtained by equitysecurities issued by the acquirer, on the merger date, the initial investment cost of long-term equityinvestment shall be taken as the share of the owner’s equity of the investee in the book value of the finalcontrol party’s consolidated financial statements. Setting total book value of issued shares as share capital,according to the difference between the initial investment cost and total book value of issued shares, capitalreserve shall be written down; if the capital reserve is not sufficient to be written down, then the retainedearnings shall be written down.
For business combination not under common control, on the merger date, the combination cost accordingto ‘Business Accounting Norms No.20- Business combinations’ should be calculated as the initialinvestment cost of long-term equity investment.
B. Other long-term equity investments not resulting from combination
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value asthe initial investment costs. For the long-term equity investments acquired by the issue of equity securities,the initial investment cost shall be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profits and losses
The investments of subsidiaries are measured with the cost method, and shall be adjusted according toequity law according to initial investment cost when making the combination financial statements. Costsshall be added or retrieved in adjustment of long-term equity investments. The cash dividends or profitsdeclared by the investee shall be recognized as the investment income of the current period.
For long-term equity investments measured under the equity method, if the initial investment costs arehigher than the investor’s attributable share of the fair value of the investee’s identifiable net assets, initialinvestment cost shall be calculated as long-term equity investment cost; if the initial investment costs arelower than the investor’s attributable share of the fair value of the investee’s identifiable net assets, themargin shall be calculated into profits/ losses of the current period, and long-term equity investment costshall be increased. The Company shall, according to the shares of net profits and other comprehensiveincome realized by the investee that shall be enjoyed or borne by the Company, recognize the profit andloss on the investments of the current period. When recognizing the net losses of the invested party, thelosses should be limited to zero at least according to book value and other long-term equities of long-termequity investment. Nonetheless, if the Company bears the obligation for additional losses and meetsconditions to recognize expected liabilities, then it shall continue to recognize investment losses andcalculate it into liabilities. When recognizing the net profits and losses and other comprehensive incomeof the investee that the Company shall enjoy or bear, the Company shall calculate the part is enjoys orbears according to share-holding ratio on the basis that the Company’s share-holding ratio remains thesame, and include the part directly into share-holders’ equities, and make adjustments to book value oflong-term equity investments. For the part of the interest or dividend from the invested party that isfavorable for declaration and distribution, the book value of long-term equity investments shall be reducedaccordingly. For unachieved internal transaction profits and losses between the Company and the investedparty, the part of the Company shall be calculated according to the ratio that should be shared or born bythe company and be offset, on the basis of which the recognition of investment profits/ losses shall beconducted. The part of asset impairment incurred in internal transaction loss shall not be offset.
5.12 Investment properties
A. When adopting cost model:
Method of depreciation or amortization
The company shall deduct expected net residual value (residual value rate: 5%) and cumulativeimpairment provision from the cost of investment property, and conduct depreciation or amortizationusing straight-line method within the service life (20 years).
5.13 Fixed Asset
A. Recognition of fixed assets
√Applicable □N/A
Fixed assets refer to tangible assets with relatively high unit value, which are held for the purpose ofproducing commodities, providing services, renting or business management with useful life exceedingone accounting year.
B. Method of depreciation
√Applicable □N/A
| Category | Depreciation method | Estimated useful life (Year) | Residual value rate | Annual depreciation rate |
| Buildings | Straight-line method | 20 | 5% | 4.75% |
| Machinery and equipment | Straight-line method | 10 | 5% | 9.5% |
| Electronic equipment and others | Straight-line method | 5 | 5% | 19% |
| Vehicles | Straight-line method | 5 | 5% | 19% |
After January 1st, 2014, the amount less than CNY 1,000,000 spent on newly-purchased equipment andapparatus for the special use of R&D shall be calculated into cost of the current period.
After January 1st, 2014, the amount more than CNY 1,000,000 spent on newly-purchased equipment andapparatus for the special use of R&D, shall be depreciated according to the following table:
| Asset category | Estimated useful life (Year) |
| Machine equipment | 6 years |
| Electronic equipment | 2 years |
C. Method of impairment test and provision for impairment for fixed assets
At the end of the period, check on fixed assets shall be implemented item by item. If the recoverableamount is lower than book value because of outdated technology, impairment or long-term idle condition,the Company shall calculate the difference between recoverable amount and book value as the provisionfor impairment for fixed assets. Provision for impairment for fixed assets shall be conducted in terms ofindividual asset.
5.14 Construction in progress
√Applicable □N/A
Accounting method for construction in progress: each construction in progress is initially measured at theactual cost.
(1) The construction in progress shall be transferred to fixed assets in the following conditions:
a. The acquired fixed assets are ready for use;b. The physical construction of the construction in progress has been completed or substantially completed;c. The acquired fixed assets conform to the design requirements or contract requirements, they can be usednormally, and it needs little or no expenditure on the acquired construction in progress.
(2) The new construction, reconstruction and expansion projects of the company’s fixed assets areincluded in the construction in progress according to the actual expenditure incurred. Borrowing interestand foreign exchange gains and losses incurred in the construction of borrowed loans can be capitalizedand included in the cost of construction in progress before the fixed assets reach the intended usablestate if the fixed assets meet the capitalization conditions.
(3) On the balance sheet date, the construction in progress shall be checked by items. If there is evidencethat the construction in progress is impaired, the provision for impairment shall be made based on thedifference between the recoverable amount and the carrying amount.
The main factors in making provision for impairment of construction in progress are as follows:
A. Suspended construction for a long time and is not expected to restart construction in the next threeyears;B. The constructed projects are backward in terms of technology and performance, and it is uncertain forthe economic benefits brought to the enterprise;C. Other circumstances sufficient to prove that the construction in progress has been impaired.
5.15 Borrowing costs
√Applicable □N/A
The principle to confirm the capitalization of borrowing costs is as follows: the borrowing costs such asinterest on borrowings, amortization of discounts or premiums, auxiliary costs, and exchange differencesdue to foreign currencies incurred by the Company due to borrowings, which can be directly attributed tothe acquisition & construction or production of assets that meet the capitalization conditions, shall becapitalized and included in the cost of the asset; other borrowing costs shall be recognized as expenses inthe period in which they are incurred and included in profit or loss.
Determination method of capitalization period:
(1) Begin capitalization: borrowing costs can only begin to be capitalized if the following threeconditions are all met simultaneously
A. Asset expenditure has occurred;B. The borrowing costs have been incurred;C. The acquisition & construction or production activities to make the asset ready for its intended use orsale have begun.
(2) Suspension of capitalization: if the acquisition and construction of fixed assets is suspended abnormally,and the suspension lasts for more than 3 months, the capitalization of borrowing costs will be suspended,and the borrowing costs incurred during the interruption period will be recognized as current expensesuntil the assets are acquisition and construction activities resumed.
(3) Stop capitalization: when the acquired and constructed fixed assets reach the intended usable state,stop the capitalization of borrowing costs.
The calculation method of the capitalized amount of borrowing costs:
(1) If a special loan is borrowed for the acquisition, construction or production of assets that meet thecapitalization conditions, the interest expense actually incurred in the current period of the special loanshall be determined after deduction of the interest income obtained by depositing the unused loan fundsin the bank or by temporary investment;
(2) If general borrowings are occupied for the purpose of acquisition, construction or production ofassets that meet the capitalization conditions, the Company shall calculate and determine amount ofinterest of general borrowings to be capitalized based on weighted average number of asset expendituresover which the accumulated asset expenditure exceeds the special borrowings multiplied by the
capitalization rate of the occupied general borrowings. The capitalization rate is calculated based on theweighted average rate of borrowings, and the auxiliary expenses incurred by general borrowings shallnot be capitalized.
5.16 Intangible assets
(1) Valuation method, service life, impairment test
√Applicable □N/A
A. Pricing of intangible assets: intangible assets are initially measured at the cost when they are actuallyacquired. For the intangible assets developed by the Company, the expenditures in the research stage shallbe included in the current profit and loss when incurred; the expenditures in the development stage shallbe recognized as intangible assets (patented technology and non-patented technology) if the followingconditions are all met simultaneously:
a. It is technically feasible to complete the intangible asset so that it can be used or sold;b. There is intention to complete the intangible asset for use or sales.c. The usefulness of methods for intangible assets to generate economic benefits include that there is apotential market for the products manufactured by applying the intangible assets or that there is a potentialmarket for the intangible assets themselves;d. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets,with the support of sufficient technologies, financial resources and other resources.e. The expenditure attributable to the intangible asset during its development phase can be measuredreliably.
B. Amortization of intangible assets: The intangible assets are amortized in the straight-line method overthe beneficial years from the month of acquisition, and intangible assets with indefinite useful lives arenot amortized.
C. On the balance sheet date, each intangible asset should be checked, and if there is any sign ofimpairment, an impairment provision should be made based on the difference between the recoverableamount and the carrying amount.
5.17 Long-term deferred and prepaid expenses
√Applicable □N/A
Long-term deferred and prepaid expenses are expenses that have occurred but should be borne by thecurrent and subsequent periods for a period of more than one year.
5.18 Payroll and employee benefits payable
The Company’s employee benefits refer to various forms of remuneration and compensation given by theCompany to the employees for obtaining services provided by employees or for termination of laborrelations, including short-term benefits, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the Company to employees’ spouses, children,dependents, survivors of deceased employees and other beneficiaries also belong to employee benefits.
(1) Accounting treatment of short-term benefits
√Applicable □N/A
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the endof the annual reporting period in which the employee provides relevant services, excluding thecompensation for the employment termination. The Company’s short-term remuneration specificallyincludes: employee wages, bonuses, allowances and subsidies, employee welfare expenses, socialinsurance premiums such as medical insurance premiums, work-related injury insurance premiums andmaternity insurance premiums, housing provident fund, labor union funds and employee education funds,
short-term paid absences, short-term profit-sharing plans, non-monetary benefits, and other short-termbenefits.
During the accounting period in which the employees provide services, the Company recognizes the actualshort-term benefits as liabilities, and includes the current profits and losses or relevant asset costsaccording to the beneficiaries of the services provided by the employees. Non-monetary short-termbenefits shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
√Applicable □N/A
Post-employment benefits refer to various forms of benefits provided by the Company in order to obtainthe services provided by the employees after the employees retire or terminate the labor relationship withthe enterprise.
Defined contribution plan: The contributions to be paid to a separate entity in exchange for the servicesprovided by employees during the accounting period on the balance sheet date are recognized as employeecompensation liabilities, and are included in the current profit and loss or related asset costs.
(3) Accounting treatment of termination benefits
√Applicable □N/A
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 the benefits from termination of employment or resignationpersuasion unilaterally;
b. When the Company recognizes costs and fees relevant to reforming the termination benefits payment.
(4) Accounting treatment method of other long-term employee benefits
□Applicable √N/A
5.19 Revenue
(1) Accounting policies adopted for revenue recognition and measurement
√Applicable □N/A
Revenue refers to the total inflow of economic benefits that are formed in the daily activities of theCompany and will lead to an increase in owners’ equity and have nothing to do with the capital investedby the owners.
When the Company has fulfilled its performance obligations in the contract, that is, recognized theRevenue when the customer obtains control over the relevant commodities, which means that the customeris able to dominate the use of the commodity and obtain almost all economic benefits from it. After theCompany delivers the product to the customer as agreed in the contract, the Revenue is recognized basedon the net amount after deducting the consideration payable to the customer. The Company recognizes theamount of contract consideration that has been collected from the customer as a contract liability beforeentering into a contract with the customer, having received the order but not delivering the product to thecustomer.
(2) Differences in accounting policies for Revenue recognition due to the adoption of different businessmodels for similar businesses
□Applicable √N/A
5.20 Government grants
√Applicable □N/A
Government grants refer to the monetary or non-monetary assets that the Company obtains from thegovernment for free, but does not include the capital invested by the government as the owner of theCompany. Government grants are divided into asset-related government grants and income-relatedgovernment grants. Government grants can only be confirmed if they meet the following conditions at thesame time:
A. The company can meet the conditions attached to government grant;B. The company can receive government grant.
(1) Judgment basis and accounting treatment method of government grants related to assetsGovernment grants related to assets shall be written off against the carrying amount of related assets orrecognized as deferred income. If government grants related to assets are recognized as deferred income,they shall be included in profit or loss in stages within the useful life of the relevant assets in a reasonableand systematic manner. Government grants measured at the nominal amount are directly included in thecurrent profit and loss. If the relevant assets are sold, transferred, scrapped or damaged before the end oftheir useful life, the undistributed balance of relevant deferred income shall be transferred to the profit andloss of the current period of asset disposal.
(2) Judgment basis and accounting treatment method of government grants related to incomeGovernment grants related to income shall be dealt with according to the following circumstances:
A. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should berecognized as deferred income and included into the current profit and loss or written off of the relatedcosts when the relevant expenses, losses are recognized;
B. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly includedinto the current profit and loss or written off of the related costs.
(3) Government grants related to the daily activities of the Company shall be included in other income orwritten off relevant costs according to the nature of economic business. Government grants unrelated tothe daily activities of the Company shall be included in non-operating income and expenditure.
5.21 Deferred income tax assets/Deferred income tax liabilities
√Applicable □N/A
On the balance sheet date, according to the deductible temporary differences and taxable temporarydifferences of asset and liability items, the applicable tax rate is used to calculate the amount of deferredtax assets and deferred tax liabilities.
5.22 Lease
(1) Accounting treatment of operating lease
□Applicable √N/A
(2) Accounting treatment of financial lease
□Applicable √N/A
(3) Determination and accounting treatment of lease under the new lease standards
√Applicable □N/A
A. As the lessee
On the contract start date, the Company evaluates whether the contract is a lease or includes a lease. If oneparty in the contract transfers the right to control the use of one or more identified assets within a certainperiod in exchange for consideration, the contract is a lease or includes a lease. In order to determinewhether the contract transfers the right to control the use of the identified asset for a certain period, theCompany evaluates whether the customer in the contract is entitled to receive substantially all theeconomic benefits arising from the use of the identified asset during the period of use, and has the right to
dominate the use of the identified asset during the period of use. The general accounting treatment is asfollows:
On the commencement date of the lease term, the Company recognizes its right to use the leased assetduring the lease term as a right-of-use asset, including the initial measurement amount of the leaseliabilities; for the lease payments paid on or before the commencement date of the lease term, if there is alease incentive, the following items should be deducted, including the relevant amount of the leaseincentive that has been enjoyed, the initial direct expenses incurred by the lessee, and the costs of thelessee for dismantling and removing the leased asset, restoring the site where the leased asset is located,or restoring the leased asset to the state agreed in the lease terms.
On the commencement date of the lease term, the Company recognizes the present value of unpaid leasepayments as lease liabilities, excluding short-term lease and low-value assets lease. When calculating thepresent value of lease payments, the Company takes the interest rate implicit in the lease as the discountrate; if the interest rate implicit in the lease cannot be determined, the incremental borrowing rate of thelessee is used as the discount rate.
The Company subsequently adopts the straight-line method to depreciate the right-of-use assets, calculatesthe interest expenses of the lease liabilities in each period of the lease term, and includes them in thecurrent profit and loss, unless otherwise stipulated to be included in the cost of the relevant assets. Variablelease payments that are not included in the measurement of lease liabilities are included in the currentprofit and loss when they are actually incurred, unless otherwise stipulated to be included in the cost ofthe relevant asset.
The Company does not recognize right-of-use assets and lease liabilities for short-term lease and low-value asset lease. In each period of the lease term, it is included in the relevant asset cost or current profitand loss on a straight-line basis.
B. As the lessor
As a lessor, a financial lease refers to substantially transfer almost all the risks and rewards related to theownership of the leased asset on the lease commencement date, and all other leases are operating leases.
a. Rental income from operating leases is recognized as current profit and loss on a straight-line basis overeach period of the lease term.
b. On the start date of the lease term, the Company recognizes the finance lease receivables for the financelease, and derecognizes the finance lease assets. During the initial measurement of the finance leasereceivables, the net investment in the lease is taken as the entry value of the finance lease receivables. Thenet lease investment is the sum of the unguaranteed residual value and the present value of the leasereceipts not yet received at the commencement date of the lease term which is discounted at the interestrate implicit in the lease.
5.23 Changes in significant accounting policies and estimates
(1) Changes in significant accounting policies
□Applicable √N/A
(2) Changes in significant accounting estimates
□Applicable √N/A
(3) The impacts arising from adoption of new accounting standards or interpretation on the balance sheet as
at 1 January 2022
□Applicable √N/A
5.24. Others
□Applicable √N/A
6. Taxation
6.1 The principal kinds of taxes and related tax rates:
The principal kinds of taxes and related tax rates:
√Applicable □N/A
| Tax | Tax basis | Tax rate |
| VAT | Calculation of output tax and input tax on product sales revenue | 13% |
| Consumption tax | Taxable price and sales volume of sales revenue of alcoholic products | 20%、CNY 0.5 /500ml |
| City construction and maintenance tax | Turnover tax payable | 7% |
| Enterprise income tax | Taxable income | 25% |
| Education surcharges | Turnover tax payable | 3% |
| Local education surcharges | Turnover tax payable | 2% |
6.2 Preferential taxation
□Applicable √N/A
6.3 Others
□Applicable √N/A
7. Notes to Items of the Consolidated Financial Statements
7.1 Cash and Cash equivalents
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Cash on hand | 12,740.70 | 9,500.00 |
| Bank balances | 58,274,305,992.53 | 51,810,234,107.11 |
| Other monetary fund | ||
| Total | 58,274,318,733.23 | 51,810,243,607.11 |
| including: total amount deposited abroad | 29,007,671.59 | 20,665,732.96 |
Cash and cash equivalents with restrictions on use
| Item | Closing balance | Opening balance |
| Statutory deposit reserve with the central bank | 6,418,765,887.71 | 6,381,004,565.81 |
7.2 Loans to banks and other financial institutions
Unit: CNY
| Item | Closing balance | Opening balance |
| Deposits with other banks | 116,176,621,670.01 | 135,071,807,332.94 |
| Loans to banks and other financial institutions | ||
| Less: impairment | 3,910,115.42 | 4,519,554.91 |
| Carrying amount | 116,172,711,554.59 | 135,067,287,778.03 |
Loans to banks and other financial institutions with restrictions on use
| Item | Closing balance | Opening balance |
| Deposits with other banks that can | 14,000,000,000.00 | 1,000,000,000.00 |
not be withdrawn at any time
7.3 Notes receivable
A. Categories of notes receivable
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Bank acceptances | 105,453,212.00 | |
| Total | 105,453,212.00 |
B. Endorsed or discounted notes receivable that is not yet matured as at the end of the reporting period
□Applicable √N/A
C. Disclosed by bad debt provision methods
□Applicable √N/A
D. Details of bad debt provision
□Applicable √N/A
7.4 Accounts receivable
A. Disclosed by aging
√Applicable □N/A
Unit: CNY
| Aging | Book balance at the end of the reporting period |
| Within 1 year | 20,937,144.00 |
| Sub-total within 1 year | 20,937,144.00 |
| 1-2 years | |
| 2-3 years | |
| More than 3 years | |
| 3-4 years | |
| 4-5 years | |
| More than 5 years | 2,681,973.01 |
| Total | 23,619,117.01 |
B. Disclosed by bad debt provision methods
√Applicable □N/A
Unit: CNY
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Carrying amount | Book balance | Bad debt provision | Carrying amount | |||||
| Amount | Proportion (%) | Amount | Proportion (%) | Amount | Proportion (%) | Amount | Proportion (%) | |||
| Bad debt provision assessed individually | ||||||||||
| Bad debt provision assessed by groups | 23,619,117.01 | 100 | 2,681,973.01 | 11.36 | 20,937,144.00 | 3,097,678.25 | 100.00 | 3,097,678.25 | 100.00 | |
| Including: bad debt provision assessed by groups | 23,619,117.01 | 100 | 2,681,973.01 | 11.36 | 20,937,144.00 | 3,097,678.25 | 100.00 | 3,097,678.25 | 100.00 | |
| Total | 23,619,117.01 | / | 2,681,973.01 | / | 20,937,144.00 | 3,097,678.25 | / | 3,097,678.25 | / | |
Bad debt provision assessed by groups:
√Applicable □N/A
Items assessed by groups: aging of accounts
Unit: CNY
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Proportion (%) | |
| Within 1 year | 20,937,144.00 | ||
| 1-2 years | |||
| 2-3 years | |||
| 3-4 years | |||
| 4-5 years | |||
| More than 5 years | 2,681,973.01 | 2,681,973.01 | 100.00 |
| Total | 23,619,117.01 | 2,681,973.01 | 11.36 |
Recognition criteria and explanations for bad debt provision assessed by groups:
□Applicable √N/A
Refer to the disclosure of other receivables if bad debt provision is made based on the general ECLmodel:
□Applicable √N/A
C. Details of bad debt provision
√Applicable □N/A
Unit: CNY
| Category | Opening balance | Change in the current period | Closing balance | |||
| Provision | Recovery or reversal | Write-off | Other changes | |||
| Bad debt provision assessed by groups | 3,097,678.25 | 415,705.24 | 2,681,973.01 | |||
| Total | 3,097,678.25 | 415,705.24 | 2,681,973.01 | |||
Reversal or recovery of significant amount of provision for bad debts in the current period:
□Applicable √N/A
D. Accounts receivable written off as at the end of the reporting period
□Applicable √N/A
E. Top five accounts receivable based on debtors
√Applicable □N/A
Unit: CNY
| Entity | Closing balance | Proportion to total closing balance of accounts receivable (%) | Closing balance of bad debt provision |
| Sinopec Easy Joy Sales Co., Ltd. | 20,937,144.00 | 88.65 | |
| Yunnan Kunming Yuanwei Economic and Trade Co., Ltd. | 847,620.00 | 3.59 | 847,620.00 |
| Tianjin Feimeng Industrial Co., Ltd. | 784,900.00 | 3.32 | 784,900.00 |
| Shanghai International Famous Liquor Development Co., Ltd. | 375,776.00 | 1.59 | 375,776.00 |
| Shenzhen Friendship Shopping Mall | 194,200.00 | 0.82 | 194,200.00 |
| Total | 23,139,640.00 | 97.97 | 2,202,496.00 |
7.5 Prepayments
A. Aging analysis of prepayments
√Applicable □N/A
Unit: CNY
| Aging | Closing balance | Opening balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1 year | 684,728,825.92 | 76.31 | 377,984,374.85 | 97.14 |
| 1-2 years | 204,055,296.64 | 22.74 | 1,575,835.77 | 0.40 |
| 2-3 years | 401,806.42 | 0.04 | 1,343,437.85 | 0.35 |
| More than 3 years | 8,191,233.29 | 0.91 | 8,206,192.81 | 2.11 |
| Total | 897,377,162.27 | 100.00 | 389,109,841.28 | 100.00 |
B. Top five prepayments based on the payers
√Applicable □N/A
| Entity | Closing balance | Proportion to the total closing balance of prepayment (%) |
| Renhuai Municipal People’s Government | 840,810,000.00 | 93.69 |
| Xishui County People’s Government | 37,513,045.06 | 4.18 |
| Sinopec Sales Co., Ltd. Guizhou Zunyi Petroleum Branch | 4,036,718.27 | 0.45 |
| Aolin Huatian Exhibition (Tianjin) Co., Ltd. | 1,765,926.61 | 0.20 |
| Shenzhen Weiye Decoration Group Co., Ltd. | 1,701,695.56 | 0.19 |
| Total | 885,827,385.50 | 98.71 |
7.6 Other receivables
A. Presentation of items
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 31,818,622.84 | 33,158,974.32 |
| Total | 31,818,622.84 | 33,158,974.32 |
B. Other receivablesa. Aging analysis
√Applicable □N/A
Unit: CNY
| Aging | Book balance at the end of the reporting period |
| Within 1 year | 27,748,377.88 |
| Subtotal of within 1 year | 27,748,377.88 |
| 1-2 years | 2,154,433.82 |
| 2-3 years | 25,223.08 |
| 3-4 years | 984,867.43 |
| 4-5 years | 967,917.47 |
| More than 5 years | 37,951.22 |
| Total | 31,918,770.90 |
b. Details of classification by nature
√Applicable □N/A
Unit: CNY
| Nature of payment | Book balance as at the end of the period | Book Opening balance |
| Petty cash | 11,519,390.69 | 16,271,192.50 |
| Current Account | 20,399,380.21 | 22,111,815.70 |
| Total | 31,918,770.90 | 38,383,008.20 |
c. Details of bad debt provision
√Applicable □N/A
Unit: CNY
| Bad debt provision | Stage I | Stage II | Stage III | Total |
| 12-month ECL | Lifetime ECL (not impaired) | Lifetime ECL (impaired) | ||
| As at 1 January 2022 | 81,167.43 | 5,142,866.45 | 5,224,033.88 | |
| Changes due to financial instruments recognised as at 1 January 2022 | ||||
| --Transfer to stage II | -25,626.74 | 25,626.74 | ||
| --Transfer to stage III | ||||
| --Reverse to stage II | ||||
| --Reverse to stage I | ||||
| Provision | 6,858.28 | 42,298.37 | 49,156.65 | |
| Reversal | 56,898.95 | 2,494,913.52 | 2,551,812.47 | |
| Elimination | ||||
| Write-off | 2,621,230.00 | 2,621,230.00 | ||
| Other changes | ||||
| As at 31 December 2022 | 5,500.02 | 94,648.04 | 100,148.06 |
Explanations on significant changes in the book balance of other receivables where there are changes inprovision for the current period:
□Applicable √N/A
d. Details of bad debt provision
√Applicable □N/A
Unit: CNY
| Category | Opening balance | Changes in the current period | Closing balance | |||
| Provision | Recovery or reversal | Write-off | Other changes | |||
| Bad debt provision assessed by aging groups | 5,224,033.88 | 49,156.65 | 2,551,812.47 | 2,621,230.00 | 100,148.06 | |
| Total | 5,224,033.88 | 49,156.65 | 2,551,812.47 | 2,621,230.00 | 100,148.06 | |
e. Other receivables written off as at the end of the current period
√Applicable □N/A
Unit: CNY
| Item | Amount of write-off |
| Actual write-off of other receivables | 2,621,230.00 |
Significant write-off of other receivables:
□Applicable √N/A
Explanations on write-off of other receivables:
□Applicable √N/A
f. Top five other receivables based on debtors
√Applicable □N/A
Unit: CNY
| Entity | Nature | Closing balance | Aging | Proportion to the total closing balance of other receivables (%) | Bad debt provision |
| China Securities Depository and Clearing Co., Ltd. Shanghai Branch | Current payment | 3,000,000.00 | Within 1 year | 9.4 | |
| Chinese Research Academy of Environmental Sciences | Current payment | 1,520,000.00 | Within 1 year | 4.76 | |
| Xinghe Industry (Shenzhen) Co., Ltd. | Current payment | 869,520.12 | 1-2 years | 2.72 | |
| Guiyang Urban Construction Investment (Group) Co., Ltd. | Current payment | 801,039.00 | 3-4 years | 2.51 | |
| China Construction Bank Co., Ltd., Renhuai Sub-branch | Current payment | 716,115.79 | Within 1 year | 2.24 | |
| Total | / | 6,906,674.91 | / | 21.63 |
A. Receivables of China Securities Depository and Clearing Corporation Limited Shanghai Branch arethe service charges for distribution of cash dividends.B. Receivables of Chinese Research Academy of Environmental Sciences are the prepaid COP15 forumfee for Moutai ecological civilization practice exchange and publicity.C. The receivables of Xinghe Industrial (Shenzhen) Co., Ltd. are the rent deposit paid by KweichowMoutai Sales Co., Ltd., a controlling subsidiary of the Company.D. The receivables of Guiyang Urban Construction Investment (Group) Co., Ltd. are the rent depositpaid by Kweichow Moutai Sales Co., Ltd., a controlling subsidiary of the Company.E. The receivables of China Construction Bank Co., Ltd., Renhuai Sub-branch are the service chargesrefundable by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company.
7.7 Inventories
A. Categories
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for inventories /impairment provision of contract performance costs | Carrying amount | Book balance | Provision for inventories /impairment provision of contract performance costs | Carrying amount | |
| Raw materials | 3,917,462,473.00 | 3,917,462,473.00 | 4,019,538,465.82 | 4,019,538,465.82 | ||
| Work in progress | 17,311,447,077.83 | 1,283,984.83 | 17,310,163,093.00 | 14,310,650,087.51 | 1,283,984.83 | 14,309,366,102.68 |
| Finish goods | 1,814,110,748.17 | 1,814,110,748.17 | 1,319,352,631.84 | 1,319,352,631.84 | ||
| Semi-finished goods | 15,782,637,922.07 | 15,782,637,922.07 | 13,746,107,884.49 | 13,746,107,884.49 | ||
| Total | 38,825,658,221.07 | 1,283,984.83 | 38,824,374,236.24 | 33,395,649,069.66 | 1,283,984.83 | 33,394,365,084.83 |
B. Provision for inventories and impairment provision of contract performance costs
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Provision | Others | Reversal or elimination | Others | |||
| work in progress | 1,283,984.83 | 1,283,984.83 | ||||
| Total | 1,283,984.83 | 1,283,984.83 | ||||
7.8 Current portion of non-current assets
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Current portion of other non-current assets | 2,123,601,333.33 | |
| Total | 2,123,601,333.33 |
7.9 Other current assets
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| VAT not deducted at the end of the reporting period | 159,246,337.97 | 67,014,310.91 |
| Prepaid income tax | 1,597,336.45 | 4,513,249.83 |
| Total | 160,843,674.42 | 71,527,560.74 |
7.10 Loans and advances
Unit: CNY
| Item | Closing balance | Opening balance |
| Loans and advances | 4,134,744,407.92 | 3,425,175,000.00 |
| Item | Closing balance | Opening balance |
| Total amount of loans and advances | 4,240,663,874.72 | 3,513,000,000.00 |
| Less: provision for loan impairment | 105,919,466.80 | 87,825,000.00 |
| Carrying amount of loans and advances | 4,134,744,407.92 | 3,425,175,000.00 |
7.11 Debt investment
A. Debt investment
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Guiyang GYB Financial Leasing Co., LTD. | 20,153,150.71 | 11,430.00 | 20,141,720.71 | 20,153,150.69 | 11,340.00 | 20,141,810.69 |
| Bank of Guiyang Co. Ltd. | 60,323,095.93 | 34,290.00 | 60,288,805.93 | 50,232,273.98 | 28,350.00 | 50,203,923.98 |
| Bank of Guizhou Co., Ltd. | 300,425,342.45 | 170,550.00 | 300,254,792.45 | 100,179,589.04 | 56,700.00 | 100,122,889.04 |
| Total | 380,901,589.09 | 216,270.00 | 380,685,319.09 | 170,565,013.71 | 96,390.00 | 170,468,623.71 |
B. Provision for impairment
√Applicable □N/A
Unit: CNY
| Provision for impairment | Stage I | Stage II | Stage III | Total |
| 12-month ECL | Lifetime ECL (not impaired) | Lifetime ECL (impaired) | ||
| As at 1 January 2022 | 96,390.00 | 96,390.00 | ||
| Balance at 1 January 2022 in the current period | ||||
| --Transfer to stage II | ||||
| --Transfer to stage III | ||||
| --Reverse to stage II | ||||
| --Reverse to stage I | ||||
| Provision | 119,880.00 | 119,880.00 | ||
| Reversal | ||||
| Elimination | ||||
| Write-off | ||||
| Other changes | ||||
| As at 31 December 2022 | 216,270.00 | 216,270.00 |
Explanations on significant changes in the book balance of debt investments where there are changes inprovision for the current period:
□Applicable √N/A
7.12 Investment properties
Measurement of investment propertiesA. Investment properties measured at cost
Unit: CNY
| Item | Buildings | Land use rights | Construction in progress | Total |
| I. Cost | ||||
| 1. Opening balance | 6,023,231.76 | 6,023,231.76 | ||
| 2. Increase in the current period | 462,926.63 | 462,926.63 | ||
| (1) Purchases | ||||
| (2) Transfer from inventories\fixed assets\construction in progress | 462,926.63 | 462,926.63 | ||
| (3) Increase arising from business combination | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 6,486,158.39 | 6,486,158.39 | ||
| Ⅱ. Accumulated depreciation and amortization | ||||
| 1. Opening balance | 780,800.01 | 780,800.01 | ||
| 2. Increase in the current period | 370,311.39 | 370,311.39 | ||
| (1) Depreciation or amortization | 306,632.96 | 306,632.96 | ||
| (2) Transfer from inventories\fixed assets\construction in progress | 63,678.43 | 63,678.43 | ||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 1,151,111.40 | 1,151,111.40 | ||
| III. Provision for impairment | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | ||||
| IV. Carrying amount | ||||
| 1. Carrying amount at the end of the reporting period | 5,335,046.99 | 5,335,046.99 | ||
| 2. Carrying amount at the beginning of the reporting period | 5,242,431.75 | 5,242,431.75 | ||
B. Investment property of which certificates of title have not been obtained
□Applicable √N/A
Others
□Applicable √N/A
7.13 Fixed assets
A. Presentation of items
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Fixed assets | 19,742,622,547.86 | 17,472,173,182.85 |
| Disposal of fixed assets | ||
| Total | 19,742,622,547.86 | 17,472,173,182.85 |
B. Fixed assetsa. Details of fixed assets
√Applicable □N/A
Unit: CNY
| Item | Buildings | Machinery and equipment | Vehicles | Electronic equipment and others | Total |
| I. Cost: | |||||
| 1. Opening Balance | 24,498,398,586.26 | 2,033,264,638.55 | 308,531,335.77 | 818,407,901.93 | 27,658,602,462.51 |
| 2. Increase in the current period | 3,142,422,089.08 | 416,462,842.38 | 87,449,550.07 | 90,002,914.92 | 3,736,337,396.45 |
| (1) Additions | 1,232,789.28 | 519,752.21 | 70,574,088.07 | 15,837,786.25 | 88,164,415.81 |
| (2) Transfer from construction in progress | 3,139,418,666.28 | 415,943,090.17 | 16,875,462.00 | 74,164,496.43 | 3,646,401,714.88 |
| (3) Increase arising from business combination | |||||
| (4) Foreign currency translation | 1,770,633.52 | 632.24 | 1,771,265.76 | ||
| 3. Decrease in the current period | 49,858,357.88 | 6,648,314.87 | 11,337,546.87 | 9,757,197.55 | 77,601,417.17 |
| (1) Disposal or retirement | 49,395,431.25 | 6,648,314.87 | 11,337,546.87 | 9,757,197.55 | 77,138,490.54 |
| (2) Foreign currency translation | |||||
| (3) Transfer to investment properties | 462,926.63 | 462,926.63 | |||
| (4) Transfer to construction in progress | |||||
| 4. Closing balance | 27,590,962,317.46 | 2,443,079,166.06 | 384,643,338.97 | 898,653,619.30 | 31,317,338,441.79 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 7,968,617,243.72 | 1,360,587,770.37 | 210,631,424.07 | 645,525,624.70 | 10,185,362,062.86 |
| 2. Increase in the current period | 1,196,002,584.37 | 150,017,334.75 | 33,489,751.92 | 64,180,332.38 | 1,443,690,003.42 |
| (1) Provision | 1,195,581,459.91 | 150,017,334.75 | 33,489,751.92 | 64,179,638.96 | 1,443,268,185.54 |
| (2) Foreign currency translation | 421,124.46 | 693.42 | 421,817.88 | ||
| 3. Decrease in the current period | 29,701,707.27 | 5,835,069.72 | 10,652,470.54 | 9,214,141.62 | 55,403,389.15 |
| (1) Disposal or retirement | 29,638,028.84 | 5,835,069.72 | 10,652,470.54 | 9,214,141.62 | 55,339,710.72 |
| (2) Foreign currency translation | |||||
| (3) Transfer to investment properties | 63,678.43 | 63,678.43 | |||
| (4) Transfer to construction in progress | |||||
| 4. Closing balance | 9,134,918,120.82 | 1,504,770,035.40 | 233,468,705.45 | 700,491,815.46 | 11,573,648,677.13 |
| III. Provision for impairment | |||||
| 1. Opening balance | 1,060,865.02 | 6,351.78 | 1,067,216.80 | ||
| 2. Increase in the current period | |||||
| (1) Provision | |||||
| 3. Decrease in the current period | |||||
| (1) Disposal or retirement | |||||
| 4. Closing balance | 1,060,865.02 | 6,351.78 | 1,067,216.80 | ||
| IV. Carrying amount | |||||
| 1. Carrying amount at the end of the reporting period | 18,456,044,196.64 | 937,248,265.64 | 151,174,633.52 | 198,155,452.06 | 19,742,622,547.86 |
| 2. Carrying amount at the beginning of the reporting period | 16,529,781,342.54 | 671,616,003.16 | 97,899,911.70 | 172,875,925.45 | 17,472,173,182.85 |
b. Fixed assets of which certificates of title have not been obtained
√Applicable □N/A
Unit: CNY
| Item | Carrying amount | Reasons why certificates of title have not been obtained |
| Second phase of the “12th Five Year Plan” 10000-ton Moutai liquor project (2012): technical transformation project that added 2,500 tons of Moutai liquor production capacity | 558,732,546.81 | In procedure |
| Technological transformation project launched in 2011 that added 2,000 tons of Moutai Prince production capacity and supporting facilities | 347,096,637.47 | In procedure |
| Technological transformation project launched in 2012 that added 2,800 tons of Moutai Prince production capacity and supporting facilities | 217,303,556.07 | In procedure |
| Moutai Huanshan liquor storage area project | 473,176,627.15 | In procedure |
| Technological transformation project for Moutai flavor liquor series and supporting facilities | 1,013,808,067.72 | In procedure |
7.14 Construction in progress
A. Presentation of items
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Construction in progress | 2,208,329,892.95 | 2,321,988,541.82 |
| Materials for construction of fixed assets | ||
| Total | 2,208,329,892.95 | 2,321,988,541.82 |
B. Construction in progressa. Construction in progress
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Construction in progress | 2,208,329,892.95 | 2,208,329,892.95 | 2,321,988,541.82 | 2,321,988,541.82 | ||
| Total | 2,208,329,892.95 | 2,208,329,892.95 | 2,321,988,541.82 | 2,321,988,541.82 | ||
b. Changes in significant construction in progress
√Applicable □N/A
Unit: CNY
| Item | Budget | Opening balance | Increase in the current period | Transfer to fixed asset | Other decreases | Closing balance | Amount injected as a proportion of budget amount (%) | Construction progress | Amount of accumulated capitalized interest | Including: capitalized interest for the current period | Interest capitalization rate for the current period (%) | Source of funds |
| Prepaid expenses | 64,251,283.82 | 623,397.94 | 63,627,885.88 | |||||||||
| Technological transformation project for Moutai flavor liquor series and supporting facilities (6,400 tons) | 3,454,160,000.00 | 34,655,972.28 | 34,655,972.28 | 60.00 | 100% | Self-raised | ||||||
| Moutai Huanshan liquor storage area project | 1,602,000,000.00 | 8,937,908.56 | 75,320,621.78 | 84,258,530.34 | 100.00 | 100% | Self-raised | |||||
| Phase I Moutai liquor technological transformation project in Zhonghua Area | 4,504,000,000.00 | 600,639,902.31 | 600,639,902.31 | 100.00 | 100% | Self-raised | ||||||
| “12th Five-Year Plan” expansion and technological transformation project: Phase II Moutai liquor technological transformation project in Zhonghua Area | 3,484,768,000.00 | 31,310,520.26 | 888,031,058.61 | 919,341,578.87 | 100.00 | 100% | Self-raised | |||||
| Technological transformation project for the starter-making production room that produces 4,000 tons of Moutai liquor annually in Plot 7 and supporting facilities | 416,000,000.00 | 93,658,435.69 | 93,658,435.69 | 100.00 | 100% | Self-raised | ||||||
| Landslide control, slope protection and anti-sliding support project in the liquor production area between Zhonghua Hengyi Road and Henger Road | 450,000,000.00 | 6,101,435.65 | 220,659,027.56 | 226,760,463.21 | 100.00 | 100% | Self-raised | |||||
| Hengsi Road (link between Tanmao Express and Zhonghua Area) Project in Zhonghua Area | 356,320,000.00 | 10,816,261.26 | 10,816,261.26 | 69.00 | 100% | Self-raised |
| “13th Five-Year Plan” project for the construction of the first batch of liquor storehouses in Zhonghua Area | 189,000,000.00 | 943,018.87 | 943,018.87 | 41.00 | 100% | Self-raised | ||||||
| Embankment reinforcement and renovation project in the plant area | 218,210,000.00 | 37,755,738.07 | 37,755,738.07 | 100.00 | 100% | Self-raised | ||||||
| Upgrading and renovation of the network of pipes for separating clean and dirty water in the old plant area | 199,000,000.00 | 63.00 | 100% | Self-raised | ||||||||
| No. 4 liquor making workshop maintenance and renovation project | 39,590,000.00 | 15,366,644.21 | 15,366,644.21 | 100.00 | 100% | Self-raised | ||||||
| Moutai Cultural and Sports Center | 261,000,000.00 | 34,631,628.88 | 34,631,628.88 | 100.00 | 100% | Self-raised | ||||||
| Link between Plot 7 and Tanmao Express Road | 28,830,000.00 | 81.00 | 100% | Self-raised | ||||||||
| “13th Five-Year Plan” Moutai liquor technological transformation project in Zhonghua Area and supporting facilities | 3,559,000,000.00 | 203,577,409.34 | 46,553,373.62 | 250,130,782.96 | 83.00 | 100% | Self-raised | |||||
| Moutai plant water supply network renovation project | 60,100,000.00 | 31,432,893.31 | 31,432,893.31 | 57.00 | 90% | Self-raised | ||||||
| 30,000-ton technological transformation project for Moutai flavor liquor series and supporting facilities | 8,384,000,000.00 | 1,614,362,901.68 | 744,839,881.68 | 993,199,599.24 | 1,366,003,184.12 | 58.00 | 77% | Self-raised | ||||
| Liquor making workshop cooling water recycling project | 430,000,000.00 | 142,108,164.47 | 165,656,209.41 | 307,764,373.88 | 100.00 | 100% | Self-raised | |||||
| 3000T/H sewage treatment plant upgrading and renovation in the Dadi Area of Plant 201 | 47,940,000.00 | 1,284,403.67 | 1,284,403.67 | 51.00 | 100% | Self-raised | ||||||
| Phase I of the packaging logistics park project | 7,833,000,000.00 | 141,509.43 | 3,575,292.49 | 3,716,801.92 | 2.00 | 8% | Self-raised |
| Upgrading and renovation of the network of pipes for separating clean and dirty water, river dredging and riverbed repair at Plant 301 of Heyixing Liquor Branch | 26,200,000.00 | 4,954,128.43 | 3,640,910.33 | 8,595,038.76 | 33.00 | 100% | Self-raised |
Upgrading andrenovation of thenetwork of pipes forseparating clean anddirty water in the DadiArea of Plant 201 ofHeyixing Liquor Branch
| 33,420,000.00 | 7,706,422.00 | 5,064,932.68 | 12,771,354.68 | 40.00 | 100% | Self-raised | ||||||
| Construction project of liquor storehouse extension project in Zhonghua Area during the 13th Five-Year Plan | 460,000,000.00 | 210,919,453.13 | 114,704,306.23 | 96,215,146.90 | 47.00 | 100% | Self-raised | |||||
| First Phase Construction Project of the "14th Five-Year Plan" Maotai-flavor Liquor Xishui Tongminba | 4,110,000,000.00 | 3,603,511.82 | 3,603,511.82 | 13.00 | 17% | Self-raised | ||||||
| Moutai liquor “14th Five-Year Plan” technological transformation project | 15,516,000,000.00 | 805,658.85 | 805,658.85 | 1 | 1% | Self-raised | ||||||
| Others | 196,287,703.61 | 345,137,390.07 | 182,098,124.86 | 359,326,968.82 | Self-raised | |||||||
| Total | 55,662,538,000.00 | 2,321,988,541.82 | 3,532,743,066.01 | 3,646,401,714.88 | 2,208,329,892.95 | / | / | / | / |
7.15 Right-of-use assets
√Applicable □N/A
Unit: CNY
| Item | Buildings | Machinery and equipment | Total |
| I. Cost | |||
| 1. Opening balance | 411,331,031.59 | 17,710,511.21 | 429,041,542.80 |
| 2. Increase in the current period | 146,145,531.33 | 146,145,531.33 | |
| (1) Lease | 146,145,531.33 | 146,145,531.33 | |
| 3. Decrease in the current period | 42,814,400.26 | 8,185,365.51 | 50,999,765.77 |
| (1) Disposal | 42,814,400.26 | 8,185,365.51 | 50,999,765.77 |
| 4. Closing balance | 514,662,162.66 | 9,525,145.70 | 524,187,308.36 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 61,622,088.29 | 4,633,484.28 | 66,255,572.57 |
| 2. Increase in the current period | 74,557,076.43 | 2,814,514.20 | 77,371,590.63 |
| (1) Provision | 74,557,076.43 | 2,814,514.20 | 77,371,590.63 |
| 3. Decrease in the current period | 18,353,448.12 | 3,637,940.18 | 21,991,388.30 |
| (1) Disposal | 18,353,448.12 | 3,637,940.18 | 21,991,388.30 |
| 4. Closing balance | 117,825,716.60 | 3,810,058.30 | 121,635,774.90 |
| III. Provision for impairment | |||
| 1. Opening balance | |||
| 2. Increase in the current period | |||
| (1) Provision | |||
| 3. Decrease in the current period | |||
| (1) Disposal | |||
| 4. Closing balance | |||
| IV. Carrying amount | |||
| 1. Carrying amount at the end of the reporting period | 396,836,446.06 | 5,715,087.40 | 402,551,533.46 |
| 2. Carrying amount at the beginning of the reporting period | 349,708,943.30 | 13,077,026.93 | 362,785,970.23 |
7.16 Intangible assets
A. Intangible assets
√Applicable □N/A
Unit: CNY
| Item | Land use rights | Software development fees | Total |
| I. Cost | |||
| 1. Opening balance | 6,977,935,254.19 | 49,671,897.42 | 7,027,607,151.61 |
| 2. Increase in the current period | 1,023,776,951.21 | 7,058,223.90 | 1,030,835,175.11 |
| (1) Additions | 1,023,776,951.21 | 7,058,223.90 | 1,030,835,175.11 |
| (2) Internal R&D | |||
| (3) Increase arising from business combination | |||
| 3. Decrease in the current period | |||
| (1) Disposal | |||
| 4. Closing balance | 8,001,712,205.40 | 56,730,121.32 | 8,058,442,326.72 |
| II. Accumulated amortization | |||
| 1. Opening balance | 780,076,926.28 | 39,171,895.09 | 819,248,821.37 |
| 2. Increase in the current period | 151,378,506.84 | 4,637,772.06 | 156,016,278.90 |
| (1) Provision | 151,378,506.84 | 4,637,772.06 | 156,016,278.90 |
| 3. Decrease in the current period | |||
| (1) Disposal | |||
| 4. Closing balance | 931,455,433.12 | 43,809,667.15 | 975,265,100.27 |
| III. Provision for impairment | |||
| 1. Opening balance | |||
| 2. Increase in the current period | |||
| (1) Provision | |||
| 3. Decrease in the current period | |||
| (1) Disposal | |||
| 4. Closing balance | |||
| IV. Carrying amount | |||
| 1. Carrying amount at the end of the reporting period | 7,070,256,772.28 | 12,920,454.17 | 7,083,177,226.45 |
| 2. Carrying amount at the beginning of the reporting period | 6,197,858,327.91 | 10,500,002.33 | 6,208,358,330.24 |
B. Land use rights of which certificates of title have not been obtained
√Applicable □N/A
Unit: CNY
| Item | Carrying amount | Reasons why certificates of title have not been obtained |
| Moutai Huanshan liquor storage area project | 144,000,000.00 | In procedure |
| Phase I and phase II Moutai liquor technological transformation project in Zhonghua Area | 2,141,855,569.18 | In procedure |
| Second phase of the “12th Five Year Plan” 10,000-ton Moutai liquor project (2012): technical transformation project that added 2,500 tons of Moutai liquor production capacity | 330,000,000.00 | In procedure |
| Maoyuan Road construction and Plot 5 liquor storehouse construction project | 369,968,500.00 | In procedure |
| Technological transformation project for the starter-making production room in Plot 7 and supporting facilities | 250,000,000.00 | In procedure |
| The first batch of construction projects in the Tanchang area of the circular economy science and technology demonstration park | 428,000,000.00 | In procedure |
| Technological transformation project for Moutai flavor liquor series and supporting facilities | 352,681,578.55 | In procedure |
| 2,000-ton Moutai Prince technological transformation project and 2,800-ton Moutai Prince technological transformation project | 30,000,000.00 | In procedure |
| “13th Five-Year Plan” Moutai liquor technological transformation project in Zhonghua Area and supporting facilities | 215,259,100.00 | In procedure |
| 30,000-ton technological transformation project for Moutai flavor liquor series and supporting facilities | 998,256,302.95 | Under construction |
| Moutai international hotel construction project | 673,430,000.00 | In procedure |
7.17 Development expenditures
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Internal development expenditures | Others | Recognised as intangible assets | Transfer to profit or loss for the current period | |||
| Project research and development | 190,536,632.60 | 190,536,632.60 | ||||
| Total | 190,536,632.60 | 190,536,632.60 | ||||
7.18 Long-term prepaid expenses
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Amortization for the current period | Other reductions | Closing balance |
| the reconstruction project of the road from Zhongshu to Maotai | 137,500,000.25 | 9,999,999.96 | 127,500,000.29 | ||
| Cost of major repairs to fixed assets | 986,355.71 | 14,351,387.45 | 744,940.16 | 14,592,803.00 | |
| Office fit out cost | 856,099.86 | 4,249,122.67 | 742,678.92 | 4,362,543.61 | |
| Total | 139,342,455.82 | 18,600,510.12 | 11,487,619.04 | 146,455,346.90 |
Note: The company and Renhuai Urban Development, Construction, Investment and Operation Co., Ltd.jointly completed transfer and amortization for the the reconstruction project of the road from Zhongshuto Maotai according to the resolution of the third meeting of the second board of directors in 2013.
7.19 Deferred tax assets/deferred tax liabilities
A. Deferred tax assets before offset
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for impairment of assets | 71,744,171.40 | 17,936,042.85 | 66,916,641.87 | 16,729,160.47 |
| Unrealized profit of internal transactions | 10,912,264,732.27 | 2,728,066,183.07 | 6,303,346,118.88 | 1,575,836,529.72 |
| Accrued but unpaid achievements-related wages | 214,872,045.38 | 53,718,011.35 | 214,872,045.38 | 53,718,011.35 |
| Others | 2,636,844,523.34 | 659,211,130.84 | 2,363,690,969.19 | 590,922,742.30 |
| Total | 13,835,725,472.39 | 3,458,931,368.11 | 8,948,825,775.32 | 2,237,206,443.84 |
B. Deferred tax liabilities before offset
□Applicable √N/A
C. Deferred tax assets or liabilities presented at the net amount after offset
□Applicable √N/A
D. Unrecognized deferred tax assets
□Applicable √N/A
E. Deductible losses for which deferred tax assets are not recognized will be expired in the followingyear
□Applicable √N/A
7.20 Other non-current assets
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Certificates of deposit | 2,059,761,333.33 | 2,059,761,333.33 | ||||
| Total | 2,059,761,333.33 | 2,059,761,333.33 | ||||
7.21 Accounts payable
A. Accounts payable
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Trade accounts payable | 2,408,371,053.69 | 2,009,832,495.56 |
| Total | 2,408,371,053.69 | 2,009,832,495.56 |
7.22 Contract liabilities
A. Contract liabilities
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Prepayments | 15,471,920,924.98 | 12,718,465,288.02 |
| Total | 15,471,920,924.98 | 12,718,465,288.02 |
7.23 Customer deposits and balances from banks and other financial institutions
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Customer deposits | 12,874,043,355.42 | 21,763,575,647.32 |
| Total | 12,874,043,355.42 | 21,763,575,647.32 |
7.24 Payroll and employee benefits payable
A. Payroll and employee benefits payable
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I. Short-term benefits | 3,675,275,694.03 | 11,168,907,165.12 | 10,064,821,500.29 | 4,779,361,358.86 |
| II. Post-employment benefits – Defined contribution plan | 2,556,202.73 | 1,664,355,464.04 | 1,664,037,355.86 | 2,874,310.91 |
| III. Termination benefits | 13,821.77 | 25,475,968.42 | 25,414,217.55 | 75,572.64 |
| Total | 3,677,845,718.53 | 12,858,738,597.58 | 11,754,273,073.70 | 4,782,311,242.41 |
B. Short-term benefits
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I. Wages or salaries, bonuses, allowances and subsidies | 3,610,723,564.15 | 9,084,104,593.60 | 8,010,688,522.89 | 4,684,139,634.86 |
| II. Staff welfare | 36,455.20 | 261,943,196.53 | 260,595,872.46 | 1,383,779.27 |
| III. Social security contributions | 35,686,654.39 | 896,691,562.84 | 882,083,922.26 | 50,294,294.97 |
| Including: Medical insurance | 35,685,053.61 | 841,767,152.74 | 827,159,660.34 | 50,292,546.01 |
| Work injury insurance | 1,600.78 | 54,924,410.10 | 54,924,261.92 | 1,748.96 |
| IV. Housing funds | 712,794,476.46 | 712,794,476.46 | ||
| V. Labor union and employee education costs | 27,214,988.99 | 193,297,008.45 | 180,016,441.78 | 40,495,555.66 |
| VI. Short-term paid leave | ||||
| VII. Short-term profit-sharing plan | ||||
| Ⅷ. Others | 1,614,031.30 | 20,076,327.24 | 18,642,264.44 | 3,048,094.10 |
| Total | 3,675,275,694.03 | 11,168,907,165.12 | 10,064,821,500.29 | 4,779,361,358.86 |
Note: “Others” is labor remuneration.
C. Defined contribution plan
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Basic pension insurance | 92,445.40 | 998,671,883.05 | 998,687,637.29 | 76,691.16 |
| 2. Unemployment insurance | 2,145.59 | 43,628,153.62 | 43,627,968.48 | 2,330.73 |
| 3. Enterprise annuity | 2,461,611.74 | 622,055,427.37 | 621,721,750.09 | 2,795,289.02 |
| Total | 2,556,202.73 | 1,664,355,464.04 | 1,664,037,355.86 | 2,874,310.91 |
7.25 Taxes payable
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Value added tax | 2,034,610,620.24 | 1,933,633,784.18 |
| Consumption tax | 1,570,075,010.07 | 4,123,882,929.27 |
| Enterprise income tax | 2,769,448,025.03 | 5,254,498,943.15 |
| Individual income tax | 69,096,434.63 | 84,112,032.43 |
| City construction and maintenance tax | 258,837,607.08 | 343,737,264.76 |
| Education surcharges | 99,389,745.34 | 135,636,926.73 |
| Local education surcharges | 67,552,876.94 | 91,717,665.75 |
| Stamp duty | 25,330,539.79 | 11,280,516.53 |
| House property tax | 809,379.99 | 721,095.74 |
| Land use tax | 11,682.07 | 9,420.06 |
| Environmental protection tax | 22,267.77 | |
| Others | 1,371,234.88 | 571,565.41 |
| Total | 6,896,555,423.83 | 11,979,802,144.01 |
7.26 Other payables
A. Presentation of items
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Interest payable | ||
| Dividends payable | ||
| Other payables | 4,543,842,833.87 | 4,124,404,781.29 |
| Total | 4,543,842,833.87 | 4,124,404,781.29 |
B. Other payablesa. Other payables presented by nature
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Material quality deposit | 318,075,043.18 | 286,891,441.71 |
| Project quality deposit | 173,047,548.78 | 103,727,351.31 |
| Dealer deposit | 1,897,194,013.05 | 2,016,098,008.20 |
| Current Account | 2,155,526,228.86 | 1,717,687,980.07 |
| Total | 4,543,842,833.87 | 4,124,404,781.29 |
b. Significant other payables aged over 1 year
□Applicable √N/A
Others:
□Applicable √N/A
7.27 Current portion of non-current liabilities
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Lease liabilities due within one year | 109,351,155.28 | 104,319,886.87 |
| Total | 109,351,155.28 | 104,319,886.87 |
7.28 Other current liabilities
Other current liabilities
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Pending output VAT | 1,979,272,808.90 | 1,535,976,293.22 |
| Total | 1,979,272,808.90 | 1,535,976,293.22 |
7.29 Lease liabilities
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Long-term lease liabilities | 334,447,942.79 | 296,466,199.74 |
| Total | 334,447,942.79 | 296,466,199.74 |
7.30 Paid-in capital
√Applicable □N/A
Unit: CNY
| Opening balance | Changes in the current period (+, -) | Closing balance | |||||
| New shares issued | Share donation | Capitalization of capital reserve | Others | Subtotal | |||
| Number of shares | 1,256,197,800.00 | 1,256,197,800.00 | |||||
7.31 Capital reserve
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital premium | 1,374,048,653.54 | 1,374,048,653.54 | ||
| Other capital reserves | 915,762.18 | 915,762.18 | ||
| Total | 1,374,964,415.72 | 1,374,964,415.72 |
7.32 Other comprehensive income
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Amount incurred in the current period | Closing balance | |||||
| Amount incurred before income tax in the current period | Less: Amount included in other comprehensive income in the prior periods that is transferred to profit or loss for the current period | Less: Amount included in other comprehensive income in the prior periods that is transferred to retained earnings for the current period | Less: Income tax expenses | Attributable to the Company after tax | Attributable to minority interests after tax | |||
| I. Other comprehensive income that cannot be reclassified to profit or loss | ||||||||
| Including: Remeasurement of changes in defined benefit plan | ||||||||
| Other comprehensive income that cannot be transferred to profit or loss under equity method | ||||||||
| Changes in fair value of investments in other equity instruments | ||||||||
| Changes in fair value of the Company’s own credit risk | ||||||||
| II. Other comprehensive income to be reclassified to profit or loss | -13,017,880.78 | 2,240,973.45 | 2,240,973.45 | -10,776,907.33 | ||||
| Including: Other comprehensive income that may be transferred to profit or loss under equity method | ||||||||
| Changes in fair value of other debt investments | ||||||||
| Amount of financial assets reclassified to other comprehensive income | ||||||||
| Provision for credit impairment of other debt investments | ||||||||
| Effective portion of gains or losses on cash flow hedging | ||||||||
| Translation differences of financial statements denominated in foreign currencies | -13,017,880.78 | 2,240,973.45 | 2,240,973.45 | -10,776,907.33 | ||||
| Total other comprehensive income | -13,017,880.78 | 2,240,973.45 | 2,240,973.45 | -10,776,907.33 | ||||
7.33 Surplus reserves
√Applicable □N/A
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserve | 25,142,832,818.16 | 7,379,946,360.72 | 32,522,779,178.88 | |
| Discretionary surplus reserve |
| Reserve fund | ||||
| Enterprise development fund | ||||
| Others | ||||
| Total | 25,142,832,818.16 | 7,379,946,360.72 | 32,522,779,178.88 |
7.34 General reserve
Unit: CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| General reserve | 1,061,529,724.00 | 1,061,529,724.00 | ||
| Total | 1,061,529,724.00 | 1,061,529,724.00 |
Note: The general reserve was set aside by Kweichow Moutai Group Finance Co., Ltd., a majority-ownedsubsidiary of the Company, in accordance with the provisions of the Measures for the Administration ofthe Setting Aside of Reserves for Financial Enterprises (Cai Jin [2012] No. 20) promulgated by theMinistry of Finance.
7.35 Retained earnings
√Applicable □N/A
Unit: CNY
| Item | Current period | Prior period |
| Before adjustment: retained earnings of the prior period | 160,716,861,920.19 | 137,594,403,807.99 |
| Adjustment: Total retained earnings at the beginning of the reporting period (increase “+”, decrease “-”) | ||
| After adjustment: retained earnings at the beginning of the reporting period | 160,716,861,920.19 | 137,594,403,807.99 |
| Add: Net profit attributable to owners of the Company for the current period | 62,716,443,738.27 | 52,460,144,378.16 |
| Less: Transfer to statutory surplus reserve | 7,379,946,360.72 | 4,967,910,209.23 |
| Transfer to discretionary surplus reserve | ||
| Transfer to general reserve | 133,951,901.33 | |
| Declaration of dividends on ordinary shares | 54,751,381,113.01 | 24,235,824,155.40 |
| Conversion of ordinary shares’ dividends into share capital | ||
| Retained earnings at the end of the reporting period | 161,301,978,184.73 | 160,716,861,920.19 |
7.36 Operating revenue and costs of sales
A. Operating revenue and costs of sales
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 123,772,332,348.71 | 9,896,113,336.80 | 106,059,290,342.18 | 8,890,990,510.72 |
| Others | 327,511,423.28 | 197,355,279.83 | 130,864,501.58 | 92,387,299.24 |
| Total | 124,099,843,771.99 | 10,093,468,616.63 | 106,190,154,843.76 | 8,983,377,809.96 |
Note: Other business revenue and costs are mainly the revenue and costs of the business of MoutaiInternational Hotel and ice cream business.
B. Description of contract obligations
√Applicable □N/A
Revenue is recognized when the customer obtains control of the goods specified in the contract and theCompany fulfills its obligations under the contract.
C. Description of apportionment to remaining contract obligations
√Applicable □N/A
The amount of revenue corresponding to contract obligations that have not yet been performed or havenot been fulfilled at the end of the reporting period is CNY 15,471,920,924.98.
7.37 Interest income, interest expense, net fee and commission revenue, and fees and commission
expenses
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Interest income | 3,454,115,583.98 | 3,274,123,720.13 |
| Fees and commission revenue | ||
| Interest expense | 105,584,206.24 | 173,897,197.98 |
| Fees and commission expense | 143,141.51 | 115,082.12 |
7.38 Taxes and surcharges
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Consumption tax | 14,628,644,881.34 | 12,056,605,155.34 |
| City construction and maintenance tax | 2,055,705,281.43 | 1,734,297,928.93 |
| Education surcharges | 880,939,077.72 | 743,270,540.94 |
| House property tax | 170,186,626.63 | 158,049,318.08 |
| Land use tax | 47,733,684.72 | 38,625,999.87 |
| Vehicle and vessel usage tax | 420,334.81 | 393,682.35 |
| Stamp duty | 121,037,737.02 | 75,936,478.31 |
| Local education surcharges | 587,292,717.26 | 495,513,694.19 |
| Environmental protection tax | 212,923.35 | 187,817.17 |
| Others | 3,645,269.94 | 1,588,454.85 |
| Total | 18,495,818,534.22 | 15,304,469,070.03 |
7.39 Selling expenses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Advertising and marketing expenses | 2,887,804,740.39 | 2,362,973,054.42 |
| Transportation expenses and transportation insurance expenses | 14,658,723.67 | 15,581,555.64 |
| Marketing travel expenses and office expenses | 69,828,805.38 | 65,584,708.40 |
| Others | 325,431,921.50 | 293,230,116.32 |
| Total | 3,297,724,190.94 | 2,737,369,434.78 |
7.40 General and administrative expenses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Payroll and employee benefits | 4,348,853,737.71 | 3,964,469,622.29 |
| Trademark licensing fees | 1,639,842,153.56 | 1,332,728,678.71 |
| Depreciation on fixed assets | 495,038,952.17 | 394,652,013.52 |
| Environmental remediation expenses | 191,513,496.34 | 125,256,351.95 |
| Company expenses | 177,404,050.78 | 186,406,218.53 |
| Amortization of intangible assets | 156,016,278.90 | 124,084,418.97 |
| Property insurance | 51,390,201.61 | 62,245,135.74 |
| Raw material base expenses | 144,152,150.24 | 228,662,175.32 |
| Rent for the use of property | 24,919,167.73 | 20,126,797.76 |
| Business reception expenses | 13,625,245.10 | 9,841,359.31 |
| Intermediary expenses | 37,289,937.20 | 28,716,580.54 |
| Rent for the use of land | 2,690,532.60 | 2,636,686.30 |
| Board expenses | 4,278,509.19 | 4,722,307.27 |
| Others | 1,725,176,660.50 | 1,965,725,718.82 |
| Total | 9,012,191,073.63 | 8,450,274,065.03 |
7.41 R&D expenses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Payroll and employee benefits | 66,492,415.10 | 22,645,218.77 |
| Consumable | 7,893,622.73 | 4,300,483.79 |
| R&D cooperation expenses | 33,128,020.95 | 26,605,729.70 |
| Depreciation on fixed assets | 21,067,522.53 | 4,758,510.21 |
| Company expenses | 984,742.75 | 1,898,827.45 |
| Others | 5,619,356.34 | 1,714,443.67 |
| Total | 135,185,680.40 | 61,923,213.59 |
7.42 Financial expenses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Interest expense (lease liabilities) | 12,023,204.77 | 13,529,867.76 |
| Interest income | -1,475,422,303.64 | -944,578,412.02 |
| Others | 71,593,272.15 | -3,474,861.76 |
| Total | -1,391,805,826.72 | -934,523,406.02 |
7.43 Other income
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Financial support for the economic development of Shanghai Pudong New Area | 5,696,000.00 | 4,677,000.00 |
| Government subsidies for double-cycle of the top ten competitive export products awarded by Guizhou Provincial Department of Commerce | 3,000,000.00 |
| Rental subsidy for Investment Business Service Center in Guanshan Lake District of Guiyang City | 1,380,000.00 | |
| Tax reduction and exemption for employment of poverty-stricken personnel who have registered for filing | 1,034,800.00 | |
| Awards from the People's Government of Erqi District, Zhengzhou City | 909,800.00 | |
| Award from the Bureau of Commerce and Investment Promotion of Guanshan Lake District, Guiyang | 906,000.00 | |
| Funds of award for promoting wholesale, retail, accommodation and catering industries in the city from the Bureau of Commerce of Xihu District, Nanchang in 2021 | 570,000.00 | |
| District-level incentives for high quality development given by Hefei city | 500,000.00 | 30,000.00 |
| “Sales competition month” incentives and incentives for “four above” enterprises given by Gulou District, Nanjing | 300,000.00 | 61,000.00 |
| Tax deduction and exemption for hiring ex-serviceman | 292,500.00 | |
| Incentive for encouraging retail and catering enterprises to promote growth from the Bureau of Commerce of Hefei | 100,000.00 | |
| Incentives given by Wuhan city to encourage enterprises to meet retail sales targets and go above the norm | 60,000.00 | 80,000.00 |
| Award for wholesale enterprises above designated size in the special funds for development of the municipal bureau of commerce in Guangdong | 50,000.00 | |
| Award for enterprises above designated size in Nanning | 50,000.00 | |
| Incentives for best progressive enterprises given by the bureau of commerce of Chaoyang District, Changchun | 50,000.00 | 80,000.00 |
| Nanning city’s support for the development of above-norm commercial and trade enterprises and other for-profit service industries above designated size | 50,000.00 | 50,000.00 |
| Award in the sales competition season in the first half of the year from the Bureau of Commerce of Gulou District, Nanjing | 10,000.00 | |
| Subsidy for enterprise retention training from the Social Insurance Fund Administration of Shenzhen | 5,250.00 | |
| Incentives given by Taohua town government of Xihu District, Nanchang | 5,000.00 | 190,000.00 |
| Award of the Bureau of Commerce of Yuhua District, Changsha | 3,454.55 | |
| Subsidies for epidemic prevention and disinfection of wholesale and retail and catering enterprises above designated size from Fenghuang Sub-district Office of People's Government of Gulou District, Nanjing | 500.00 | |
| Incentives given by Jinan municipal government for innovation and development | 2,630,000.00 | |
| Incentives given by Changsha Municipal Development and Reform Bureau to support industrial development | 2,030,000.00 | |
| Incentives for key enterprises given by Beijing Xicheng District Development and Reform Commission | 1,200,000.00 | |
| Funds earmarked by Guiyang Municipal Bureau of Commerce for foreign economic and trade development | 300,000.00 | |
| Funds earmarked by Nanning Municipal Bureau of Commerce for service industry development | 240,000.00 | |
| Incentives given by Guiyang city to support the stable development of above-norm wholesale, retail and catering enterprises in response to COVID-19 and encourage them to reach their design capacity and increase efficiency | 200,000.00 | |
| Town-level financial incentives given by Nanchang city | 35,000.00 | |
| Incentives for “four above” enterprises given by Zhengzhou city | 80,000.00 |
| Grants for COVID-19 prevention and control | 20,000.00 | |
| Funds earmarked by Changsha city for guiding service industries | 20,000.00 | |
| Refund of service charges for withholding individual income tax | 9,422,570.66 | 8,537,082.76 |
| Additional value-added tax credit | 109,478.62 | 55,828.43 |
| Total | 24,505,353.83 | 20,515,911.19 |
7.44 Investment income
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Income from long-term equity investments under equity method | ||
| Investment income on disposal of long-term equity investments | ||
| Investment income from holding held-for-trading financial assets | ||
| Dividend income from holding investments in other equity instruments | ||
| Interest income from holding debt investments | ||
| Interest income from holding other debt investments | ||
| Investment income from disposal of held-for-trading financial assets | ||
| Investment income from disposal of investments in other equity instruments | ||
| Investment income from disposal of debt investments | ||
| Investment income from disposal of other debt investments | ||
| Income from debt restructuring | ||
| Investment income from disposal of other non-current financial assets | -1,505,395.94 | |
| Interest income from holding certificates of deposit | 63,840,000.00 | 59,761,333.33 |
| Total | 63,840,000.00 | 58,255,937.39 |
7.45 Gains from changes in fair value
√Applicable □N/A
Unit: CNY
| Source resulting in gains from changes in fair values | Amount incurred in the current period | Amount incurred in the prior period |
| Held-for-trading financial assets | ||
| Including: Gains from changes in fair values arising from derivatives | ||
| Held-for-trading financial liabilities | ||
| Investment properties carried at fair value | ||
| Other non-current financial assets | -2,244,726.29 | |
| Total | -2,244,726.29 |
7.46 Credit impairment losses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Bad debt provision of notes receivable | ||
| Bad debt provision of accounts receivable | 415,705.24 | 47,413.76 |
| Bad debt provision of other receivables | 2,502,655.82 | 134,900.04 |
| Impairment on debt investments | -119,880.00 | -84,510.00 |
| Impairment on other debt investments | ||
| Bad debt provision of long-term receivables | ||
| Impairment on contract assets | ||
| Others | -17,485,027.31 | -13,120,244.99 |
| Total | -14,686,546.25 | -13,022,441.19 |
Note: “Others” is mainly the provision for impairment of loans issued by the company’s majority-ownedsubsidiary Kweichow Moutai Group Finance Co., Ltd.
7.47 Gains from disposal of assets
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Gains or losses from disposal of fixed assets | -129,948.22 | |
| Gains or losses from disposal of right-of-use assets | 343,183.91 | |
| Total | 213,235.69 |
7.48 Non-operating income
Non-operating income
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period | Amount included in non-recurring profit or loss in the current period |
| Total gains on disposal of non-current assets | 282,981.41 | 3,437.33 | 282,981.41 |
| Including: Gains on disposal of fixed assets | 282,981.41 | 3,437.33 | 282,981.41 |
| Gains on disposal of intangible assets | |||
| Gains on exchange of non-monetary assets | |||
| Donations received | |||
| Government grants | |||
| Gains on fines and damages | 65,421,527.15 | 66,338,633.29 | 65,421,527.15 |
| Others | 5,147,776.84 | 2,647,149.12 | 5,147,776.84 |
| Total | 70,852,285.40 | 68,989,219.74 | 70,852,285.40 |
7.49 Non-operating expenses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period | Amount included in non-recurring profit or loss in the current period |
| Total losses on disposal of non-current assets | 21,063,974.29 | 11,924,267.10 | 21,063,974.29 |
| Including: Losses on disposal of fixed assets | 21,063,974.29 | 11,924,267.10 | 21,063,974.29 |
| Losses on disposal of intangible assets | |||
| Losses on exchange of non-monetary assets | |||
| Donations to third parties | 225,431,100.98 | 271,167,088.19 | 225,431,100.98 |
| Amercement outlay | 200,000.00 | ||
| Others | 2,389,244.34 | 8,546,747.21 | 2,389,244.34 |
| Total | 248,884,319.61 | 291,838,102.50 | 248,884,319.61 |
7.50 Income tax expense
A. Income tax expenses
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Current tax expenses | 23,548,077,905.70 | 19,922,940,809.01 |
| Deferred tax expenses | -1,221,724,924.27 | -1,115,438,870.71 |
| Total | 22,326,352,981.43 | 18,807,501,938.30 |
B. Reconciliation of income tax expenses to the accounting profit
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period |
| Total profit | 87,701,489,748.18 |
| Income tax expenses calculated at statutory/applicable tax rate | 21,925,372,437.05 |
| Effect of different tax rates applicable to subsidiaries | |
| Effect of adjustment to income tax of prior periods | |
| Effect of non-taxable income | |
| Effect of non-deductible costs, expenses and losses | 400,980,544.38 |
| Effect of using deductible losses for which deferred tax assets were previously not recognized | |
| Effect of deductible temporary differences or deductible losses unrecognized in the current period | |
| Income tax expense | 22,326,352,981.43 |
7.51 Other comprehensive income
√Applicable □N/A
See Note 32 Other Comprehensive Income for details
7.52 Items of the cash flow statement
A. Cash received relating to other operating activities
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Interest income from self-owned funds | 886,579,338.69 | 549,608,351.20 |
| Other income received | 1,872,842,833.19 | 1,093,928,511.28 |
| Total | 2,759,422,171.88 | 1,643,536,862.48 |
B. Cash paid relating to other operating activities
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Advertising and publicity expenses paid | 1,177,149,398.36 | 1,047,792,182.25 |
| Transportation expenses and transportation insurance expenses paid | 205,887,269.67 | 238,511,859.13 |
| Property insurance premiums paid | 45,179,150.27 | 56,151,552.10 |
| Other expenses paid | 3,694,871,614.59 | 3,026,048,912.52 |
| Total | 5,123,087,432.89 | 4,368,504,506.00 |
C. Cash received relating to other investing activities
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Performance bond received for capital construction | 4,971,762.18 | 9,983,452.63 |
| Total | 4,971,762.18 | 9,983,452.63 |
D. Cash paid relating to other investing activities
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Refunded performance bond for capital construction | 31,486,829.54 | 23,048,029.93 |
| Total | 31,486,829.54 | 23,048,029.93 |
E. Cash payments relating to other financing activities
√Applicable □N/A
Unit: CNY
| Item | Amount incurred in the current period | Amount incurred in the prior period |
| Amount paid to repay lease liabilities | 54,332,788.37 | 88,121,549.59 |
| Total | 54,332,788.37 | 88,121,549.59 |
7.53 Supplementary information to the cash flow statement
A. Supplementary information to the cash flow statement
√Applicable □N/A
Unit: CNY
| Supplementary information | Current period | Prior period |
| 1．Reconciliation of net profit to cash flow from operating activities: | ||
| Net profit | 65,375,136,766.75 | 55,720,529,956.46 |
| Add: Provision for impairment losses of assets | ||
| Credit impairment losses | 14,686,546.25 | 13,022,441.19 |
| Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 1,443,574,818.50 | 1,344,833,911.39 |
| Amortization of right-of-use assets | 77,371,590.63 | 101,608,046.18 |
| Amortization of intangible assets | 156,016,278.90 | 124,084,418.97 |
| Amortization of long-term prepaid expenses | 11,487,619.04 | 10,687,874.77 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (gains are indicated by “－”) | -213,235.69 | |
| Losses on retirement of fixed assets (gains are indicated by “－”) | 20,780,992.88 | 11,920,829.77 |
| Losses on changes in fair values (gains are indicated by “－”) | 2,244,726.29 | |
| Financial expenses (income is indicated by “－”) | 12,023,204.77 | 13,529,867.76 |
| Losses arising from investments (gains are indicated by “－”) | -63,840,000.00 | -58,255,937.39 |
| Decrease in deferred tax assets (increase is indicated by “－”) | -1,221,724,924.27 | -1,113,981,357.47 |
| Increase in deferred tax liabilities (decrease is indicated by “－”) | -1,457,513.23 | |
| Decrease in inventories (increase is indicated by “－”) | -5,430,009,151.41 | -4,525,277,406.77 |
| Decrease in receivables from operating activities (increase is indicated by “－”) | -15,051,874,095.80 | 504,305,749.89 |
| Increase in payables from operating activities (decrease is indicated by “－”) | -8,644,820,580.52 | 11,880,880,539.56 |
| Others | ||
| Net cash flow from operating activities | 36,698,595,830.03 | 64,028,676,147.37 |
| 2．Significant investing and financing activities that do not involve cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible bonds due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3．Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 152,378,738,982.83 | 178,640,587,379.52 |
| Less: Opening balance of cash | 178,640,587,379.52 | 146,740,524,868.05 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -26,261,848,396.69 | 31,900,062,511.47 |
B. Composition of cash and cash equivalents
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| I. Cash | 152,378,738,982.83 | 178,640,587,379.52 |
| Including: Cash on hand | 12,740.70 | 9,500.00 |
| Bank balances | 48,074,557,886.36 | 42,099,344,994.22 |
| Other monetary funds | ||
| Deposits with the central bank | 2,568,410,342.65 | 2,705,674,089.61 |
| Deposits with other banks | 101,735,758,013.12 | 133,835,558,795.69 |
| Placements with banks |
| II. Cash equivalents | ||
| Including: Investments in debt securities due within three months | ||
| III. Closing balance of cash and cash equivalents | 152,378,738,982.83 | 178,640,587,379.52 |
| Including: Restricted cash and cash equivalents of the Company and subsidiaries within the Group |
Others:
□Applicable √N/A
7.54 Notes to items in the statement of changes in owners’ equity
Describe matters such as the names and the adjustment amount of the items included in “others” in respectof adjustments to the closing balances of the prior reporting period:
□Applicable √N/A
7.55 Assets with restricted ownership or right-of-use
√Applicable □N/A
Unit: CNY
| Item | Carrying amount at the end of the reporting period | Reasons of restriction |
| Cash and Cash equivalents | 6,418,765,887.71 | Cash and Cash equivalents deposited in the central bank’s statutory deposit reserve |
| Loans to banks and other financial institutions | 14,000,000,000.00 | Interbank deposits that cannot be withdrawn in advance |
| Total | 20,418,765,887.71 | / |
7.56 Foreign currency monetary items
A. Foreign currency monetary items
√Applicable □N/A
Unit: CNY
| Item | Closing balances of foreign currencies | Exchange rates for translation | Closing balance of CNY |
| Cash and Cash equivalents | |||
| Including: USD | |||
| EUR | 3,907,862.37 | 7.4229 | 29,007,671.59 |
| HKD |
B. Description of foreign operations: for significant foreign operations, major domicile andfunctional currency and its basis of selection shall be disclosed, and reasons for foreign operationschanging their functional currencies shall also be disclosed.
√Applicable □N/A
The Company’s wholly-owned subsidiary, Kweichow Moutai Paris Trading, is registered in Paris,France, and its functional currency is Euro.
7.57 Government grants
A. Basic information of government grants
√Applicable □N/A
Unit: CNY
| Category | Amount | Presenting items | Amount included in profit or loss |
| Financial support for the economic development of Shanghai Pudong New Area | 5,696,000.00 | Other income | 5,696,000.00 |
| Government subsidies for double-cycle of the top ten competitive export products awarded by Guizhou Provincial Department of Commerce | 3,000,000.00 | Other income | 3,000,000.00 |
| Rental subsidy for Investment Business Service Center in Guanshan Lake District of Guiyang City | 1,380,000.00 | Other income | 1,380,000.00 |
| Awards from the People's Government of Erqi District, Zhengzhou City | 909,800.00 | Other income | 909,800.00 |
| Award from the Bureau of Commerce and Investment Promotion of Guanshan Lake District, Guiyang | 906,000.00 | Other income | 906,000.00 |
| Funds of award for promoting wholesale, retail, accommodation and catering industries in the city from the Bureau of Commerce of Xihu District, Nanchang in 2021 | 570,000.00 | Other income | 570,000.00 |
| District-level incentives for high quality development given by Hefei city | 500,000.00 | Other income | 500,000.00 |
| “Sales competition month” incentives and incentives for “four above” enterprises given by Gulou District, Nanjing | 300,000.00 | Other income | 300,000.00 |
| Incentive for encouraging retail and catering enterprises to promote growth from the Bureau of Commerce of Hefei | 100,000.00 | Other income | 100,000.00 |
| Incentives given by Wuhan city to encourage enterprises to meet retail sales targets and go above the norm | 60,000.00 | Other income | 60,000.00 |
| Award for wholesale enterprises above designated size in the special funds for development of the municipal bureau of commerce in Guangdong | 50,000.00 | Other income | 50,000.00 |
| Award for enterprises above designated size in Nanning | 50,000.00 | Other income | 50,000.00 |
| Incentives for best progressive enterprises given by the bureau of commerce of Chaoyang District, Changchun | 50,000.00 | Other income | 50,000.00 |
| Nanning city’s support for the development of above-norm commercial and trade enterprises and other for-profit service industries above designated size | 50,000.00 | Other income | 50,000.00 |
| Award in the sales competition season in the first half of the year from the Bureau of Commerce of Gulou District, Nanjing | 10,000.00 | Other income | 10,000.00 |
| Subsidy for enterprise retention training from the Social Insurance Fund Administration of Shenzhen | 5,250.00 | Other income | 5,250.00 |
| Incentives given by Taohua town government of Xihu District, Nanchang | 5,000.00 | Other income | 5,000.00 |
| Award of the Bureau of Commerce of Yuhua District, Changsha | 3,454.55 | Other income | 3,454.55 |
| Subsidies for epidemic prevention and disinfection of wholesale and retail and catering enterprises above designated size from Fenghuang Sub-district Office of People's Government of Gulou District, Nanjing | 500.00 | Other income | 500.00 |
B. Return of government grants
□Applicable √N/A
8. Equity in other entities
8.1 Equity in subsidiaries
A. Composition of the Group
√Applicable □N/A
| Subsidiary | Main place of business | Place of registration | Business nature | Shareholding ratio | Acquisition method | |
| Directly | Indirectly | |||||
| GUIZHOU MOUTAI CHIEW IMPORT AND EXPORT CO., LTD. | Guiyang, Guizhou | 70 | Investment | |||
| Kweichow Moutai Sales Co., Ltd. | Renhuai, Guizhou | 95 | Investment | |||
| Kweichow Moutai Group Finance Co., Ltd. | Renhuai, Guizhou | 51 | Investment | |||
| Moutai Custom Marketing (Guizhou) Co., Ltd. | Guiyang, Guizhou | 70 | Investment | |||
| Beijing Friendship Messenger Trading Co., Ltd. | Beijing | 70 | Investment | |||
| Kweichow Moutai Paris Trading | Paris, France | 100 | Investment | |||
| Guizhou Laymau Liquor Industry Co., Ltd. | Guiyang, Guizhou | 43 | Investment | |||
| Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | Renhuai, Guizhou | 100 | Investment | |||
The basis for holding half or less voting rights but still controlling the investee, and holding more thanhalf of the voting rights but not controlling the investee:
The Company holds 43% of the equity in Guizhou Laymau Liquor Industry Co., Ltd., but may actuallycontrol this company, in that the Company has a majority of the board members in Guizhou LaymauLiquor Industry Co., Ltd.
B. Important non-wholly owned subsidiaries
√Applicable □N/A
Unit: CNY
| Subsidiary | Shareholding of minority shareholders proportion | Profit and loss attributable to minority shareholders in the current period | Dividends declared and distributed to minority shareholders in the current period | Closing balance of minority shareholders’ equity for the period |
| Kweichow Moutai Sales Co., Ltd. | 5% | 1,813,081,365.66 | 2,369,686,816.69 | 2,282,401,023.18 |
Explanation of the difference between the shareholding proportion of minority shareholders and the votingright proportion of subsidiaries:
□Applicable √N/A
Others:
□Applicable √N/A
C. Major financial information of significant non-wholly owned subsidiaries
√Applicable □N/A
Unit: CNY 10,000
| 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 | |
| Kweichow Moutai Sales Co., Ltd. | 8,220,420.32 | 78,152.57 | 8,298,572.89 | 3,720,573.89 | 13,196.96 | 3,733,770.85 | 7,588,967.01 | 62,919.92 | 7,651,886.93 | 1,968,312.40 | 5,561.59 | 1,973,873.99 |
| Subsidiary | Current period | Prior period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Kweichow Moutai Sales Co., Ltd. | 10,360,419.48 | 3,626,162.73 | 3,626,162.73 | 4,893,346.93 | 9,061,083.73 | 4,803,918.40 | 4,803,918.40 | 3,616,271.47 |
9. Risks relevant to financial instruments
√Applicable □N/A
The main financial instruments of the Company include other non-current financial assets, cash and cashequivalents etc. These financial instruments are created mainly for the operating financing of the Company.The Company has many other financial assets and liabilities, such as accounts receivable, other receivables,accounts payable and other payables, which are directly produced as a result of operation.
The major risks caused by the financial instruments of the Company are credit risk, liquidity risk, exchangerate risk and interest rate risk.
1. Credit risk
The financial assets of the Company include cash and cash equivalents, accounts receivable, otherreceivables etc. The credit risk in these financial assets originates from breach of the agreement by thecounter party. The maximum risk exposure is equivalent to the carrying amount of these instrument.
No guaranty is required as the Company only trades with the recognized and reputable third parties. Thecredit risk is managed by customers in a centralized manner. The Company faces a low credit risk as itcollects accounts in advance during sales.
2. Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the enterprise performs its obligation ofsettlement through delivery of cash or other financial assets.
The policy of the Company is to ensure that it has sufficient cash to repay the debts due. The subsidiariesshall be responsible for their own cash flow predictions. The finance department of the Company shallconstantly monitor the short-term and long-term funds demands at the group level to maintain the funddemands according to the summary of the cash flow predictions of the subsidiaries.
3. Exchange rate risk
The foreign exchange fluctuation risk faced by the Company is mainly related to the operating activitiesof the Company (when the receipts and payments are not settled in a foreign currency other than thefunctional currency of the Company) and its net investment in overseas subsidiaries. The foreign exchangerisk sustained by the Company is mainly related to the United States dollars and Euro. The Company’smajor business activities are priced and settled in CNY except for those settled in USD and EUR.
4. Interest rate risk
Interest rate risk refers to the risk of fluctuation in the fair value of the financial instruments or the futurecash flow due to the change in the market interest rate. The risk of fluctuation in the market interest ratefaced by the Company is mainly related to the liabilities with the interest accrued at a floating interest rate.As at December 31, 2022, the Company has no liabilities with the interest accrued at a floating interestrate.
10. Disclosure of fair value
10.1 Fair value of assets and liabilities measured at fair value at the end of the period
□Applicable √N/A
10.2 The basis for determining the market price of continuous and non-continuous level 1 fair valuemeasurement items
□Applicable √N/A
10.3 Qualitative and quantitative information on the valuation techniques used and importantparameters for continuous and non-continuous level 2 fair value measurement items
□Applicable √N/A
10.4 Qualitative and quantitative information on the valuation techniques used and importantparameters for continuous and non-continuous level 3 fair value measurement items
□Applicable √N/A
10.5 Continuous level 3 fair value measurement items, adjustment information between the openingand closing carrying amount and sensitivity analysis of unobservable parameters
□Applicable √N/A
10.6 Continuous fair value measurement items, if there is a conversion between various levels duringthe current period, the reasons for the conversion and the policy for determining the timing of theconversion
□Applicable √N/A
10.7 Changes in valuation technology during the current period and reasons for the changes
□Applicable √N/A
10.8 The fair value of financial assets and financial liabilities not measured at fair value
□Applicable √N/A
10.9 Others
□Applicable √N/A
11. Related parties and related party transactions
11.1 The Company’s parent company
√Applicable □N/A
Unit: CNY 10,000
| Parent company | Place of registration | Business nature | Registered capital | Shareholding ratio of parent company to the Company | Proportion of voting rights of parent company to the company |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Guiyang, Guizhou | 1,000,000 | 54.00 | 54.00 |
11.2 Subsidiaries of the Company
√Applicable □N/A
Please refer to “VIII. Equity in other entities” for the details of the subsidiaries of the Company
11.3 Other related parties
√Applicable □N/A
| Name of other related parties | Relationship with the company |
| Beijing Moutai Trading Co., Ltd. | Wholly-owned subsidiary of the parent company |
| ChangLi Moutai Liquor Trade Co., Ltd. | other |
| Shanghai Moutai Trading Co., Ltd. | other |
| Guizhou Fuming Packaging Co., Ltd. | other |
| Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | other |
| Guizhou Jiuyuan Property Co., Ltd. | other |
| Kweichow Moutai (Group) International Travel Service Co., Ltd. | other |
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Kweichow Moutaichun Marketing Company | other |
| Health Industry Co., Ltd. of Kweichow Moutai Group. | other |
| Guizhou Baijin Liquor Sales Co., Ltd. | other |
| Guizhou Baijin Liquor Co., Ltd. | other |
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | other |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. | Majority-owned subsidiary of the parent company |
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | other |
| Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. | other |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Majority-owned subsidiary of the parent company |
| Guizhou Xijiu Co., Ltd. | other |
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | other |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | other |
| Kweichow Zunyi Moutai Airport Co., Ltd. | Majority-owned subsidiary of the parent company |
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | other |
| Guizhou Xijiu Sales Co., Ltd. | other |
| Gui Zhou New Huaxi Glass Co., Ltd | other |
| Maotai (Guizhou) Investment Fund (L.P.) | Majority-owned subsidiary of the parent company |
| Moutai (Guizhou) Investment Management Co., Ltd. | Majority-owned subsidiary of the parent company |
| Shanghai Kweichow Moutai Industrial Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Shanghai Rencai Printing Affairs Co., Ltd. | other |
| Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. | other |
| Hotel Management Company of Moutai Group | Wholly-owned subsidiary of the parent company |
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | other |
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | Majority-owned subsidiary of the parent company |
| Moutai Financial Leasing Co., Ltd | Wholly-owned subsidiary of the parent company |
| Kweichow Moutai Group Marketing Co., Ltd. | Wholly-owned subsidiary of the parent company |
| Huagui Life Insurance Co., Ltd. | other |
| Guiyang GYB Financial Leasing Co., Ltd. | other |
| Bank of Guizhou Co., Ltd. | other |
| Guizhou Zunpeng Liquor Industry Co., Ltd. | other |
| Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. | other |
| Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | other |
| Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. | other |
| Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology Development Co., Ltd. | Majority-owned subsidiary of the parent company |
Others
(1) ChangLi Moutai Liquor Trade Co., Ltd. is a wholly-owned subsidiary of Kweichow Moutai DistilleryGroup Changli Liquorry Co., Ltd.;
(2) Shanghai Moutai Trading Co., Ltd. is a wholly-owned subsidiary of Shanghai Kweichow MoutaiIndustrial Co., Ltd.;
(3) Guizhou Fuming Packaging Co., Ltd is a majority-owned subsidiary of Kweichow Moutai Distillery(Group) Technology Development Co., Ltd.;
(4) Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. is a majority-ownedsubsidiary of Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd.;
(5) Guizhou Jiu yuan Property Co., Ltd. is a majority-owned subsidiary of China Kweichow MoutaiDistillery (Group) Cultural Tourism Co., Ltd.;
(6) Kweichow Moutai (group) International Travel Service Co., Ltd. is a wholly-owned subsidiary ofChina Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd.;
(7) Kweichow Moutaichun Marketing Company is a wholly-owned subsidiary of Kweichow MoutaiDistillery (Group) Technology Development Co., Ltd.;
(8) Health Industry Co., Ltd. of Kweichow Moutai Group. is a majority-owned subsidiary of KweichowMoutai Liquorry (Group) Health Liquor Co., Ltd.;
(9) Description of Guizhou Baijin Liquor Sales Co., Ltd.: In 2022, the name of KWEICHOW MOUTAIWINERY (GROUP) BAIJIN LIQUOR SALES CO., LTD. was changed to Guizhou Baijin Liquor SalesCo., Ltd. which is a wholly-owned subsidiary of Guizhou Baijin Liquor Co., Ltd.;
(10) Description of name and equity change of Guizhou Baijin Liquor Co., Ltd.: In 2022, the name ofKWEICHOW MOUTAI WINERY (GROUP)BAIJIN LIQUOR CO. was changed to Guizhou BaijinLiquor Co., Ltd. Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. transferred and sold all ofits original 40% equity;
(11) Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. is a wholly-owned subsidiary ofKweichow Moutai Liquorry (Group) Health Liquor Co., Ltd.;
(12) Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co.,Ltd. is a wholly-owned subsidiary of Kweichow Moutai Distillery (Group) Real Estate InvestmentDevelopment Co., Ltd.;
(13) Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. is a wholly-owned subsidiary ofKweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd.;
(14) Guizhou Maotai Ecological Agriculture Sales Co., Ltd. is a wholly-owned subsidiary of KweichowMoutai (Group) Ecological Agriculture Industry Development Co., Ltd.;
(15) Kweichow Moutai Logistics Park Grain Storage Co., Ltd. is a majority-owned subsidiary ofKweichow Moutai Distillery (Group) Logistics Co., Ltd.;
(16) Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. is a majority-owned subsidiary ofKweichow Moutai Distillery (Group) Technology Development Co., Ltd.;
(17) Guizhou Xijiu Sales Co., Ltd. is a wholly-owned subsidiary of Guizhou Xijiu Co., Ltd.;
(18) GUI ZHOU NEW HUAXI GLASS CO., LTD is a majority-owned subsidiary of Kweichow MoutaiDistillery (Group) Technology Development Co., Ltd.;
(19) Shanghai Rencai Printing Affairs Co., Ltd. is an associate of Kweichow Moutai Distillery (Group)Technology Development Co., Ltd.;
(20) Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd.: In 2022, Kweichow Moutai Distillery(Group) Technology Development Co., Ltd. transferred and sold all of its original 51% equity;
(21) Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. is a wholly-owned subsidiary of Kweichow Zunyi Moutai Airport Co., Ltd.;
(22) Huagui Life Insurance Co., Ltd. is an associate of the parent company;
(23) Guiyang GYB Financial Leasing Co., Ltd. is an associate of the parent company;
(24) Bank of Guizhou Co., Ltd. is an associate of the parent company;
(25) Guizhou Zunpeng Liquor Industry Co., Ltd. is a majority-owned subsidiary of Kweichow MoutaiDistillery (Group) Circular Economy Industrial Investment Development Co., Ltd.;
(26) Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. is a wholly-ownedsubsidiary of Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.;
(27) Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. is a majority-ownedsubsidiary of Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment DevelopmentCo., Ltd.;
(28) Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. is a wholly-owned subsidiary of KweichowMoutai Liquorry (Group) Health Liquor Co., Ltd.;
(29) Description of name and equity change of Guizhou Xijiu Co., Ltd.: In 2022, the controllingshareholder of the Company, China Kweichow Moutai Distillery (Group) Co., Ltd. released anannouncement, proposing to transfer 82% equity of GUIZHOU MAOTAI DISTILLERT (GROUP) XIJIUCO., LTD. to State-owned Assets Supervision and Administration Commission of Guizhou Province. OnDecember 22, 2022, the name of GUIZHOU MAOTAI DISTILLERT (GROUP) XIJIU CO., LTD. waschanged to Guizhou Xijiu Co., Ltd.
11.4 Related transactions
A. Related transaction on purchase and sales of goods, and rendering and receipt of servicesPurchase of goods/receipt of services
√Applicable □N/A
Unit: CNY
| Related party | Related party transaction | Current period | Prior period |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Right to use the trademark | 1,639,842,153.56 | 1,332,728,678.71 |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Goods transportation service | 176,888,990.77 | 215,293,693.93 |
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | Purchase of goods | 261,924,856.26 | 186,644,711.14 |
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Purchase of goods | 186,087,312.72 | 242,357,820.96 |
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Purchase of goods | 130,101,300.00 | 150,339,280.00 |
| Gui Zhou New Huaxi Glass Co., Ltd | Purchase of goods | 102,311,289.42 | 60,580,925.36 |
| Guizhou Fuming Packaging Co. Ltd | Purchase of goods | 88,324,091.21 | 73,963,369.22 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Purchase of goods | 63,728,794.52 | 109,617,071.39 |
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Purchase of goods | 159,019.22 | 33,274.34 |
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | Purchase of goods | 74,203.56 | |
| Shanghai Rencai Printing Affairs Co., Ltd. | Purchase of goods | 12,490,908.50 | |
| Guizhou Xijiu Co., Ltd. | Purchase of goods | 2,892,054.00 | |
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | Purchase of goods | 2,203,000.00 | |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Purchase of goods | 1,766,767.13 | |
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Purchase of offices | 9,741,492.16 | |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Comprehensive service fee | 194,415.10 | 379,394.43 |
| Huagui Life Insurance Co., Ltd. | Purchase of insurances | 499,610.16 | 477,500.00 |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Labor cost | 229,128,409.82 | |
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | Labor cost | 4,091,215.49 | |
| Hotel Management Company of Moutai Group | Labor cost | 67,315,342.78 | 61,437,621.87 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | Labor cost | 64,402,800.47 | 95,320,754.85 |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Labor cost | 25,273,693.09 | 201,743,603.42 |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Labor cost | 5,224,867.44 | 573,223.59 |
| Kweichow Moutai (group) International Travel Service Co., Ltd. | Labor cost | 2,684,355.24 | 24,511,528.39 |
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Labor cost | 1,939,970.05 | 15,019,725.64 |
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Labor cost | 25,661.62 | |
| Guizhou Xijiu Co., Ltd. | Acceptance of water supply services | 5,064,200.00 | 3,925,458.51 |
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Other utility costs such as water, electricity and gas (purchase) | 48,625.95 |
Sales of goods/rendering of labor services
√Applicable □N/A
Unit: CNY
| Related party | Related party transaction | Current period | Prior period |
| Kweichow Moutai Group Marketing Co., Ltd. | Sales of goods | 5,241,503,023.90 | 5,193,690,831.85 |
| Hotel Management Company of Moutai Group | Sales of goods | 23,529,334.51 | 19,511,175.24 |
| Shanghai Kweichow Moutai Industrial Co., Ltd. | Sales of goods | 6,435,461.94 | 1,309,890.28 |
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | Sales of goods | 2,999,915.04 | 4,778,230.09 |
| Beijing Moutai Trading Co., Ltd. | Sales of goods | 1,568,516.81 | 2,729,246.02 |
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | Sales of goods | 466,152.22 | 315,142.49 |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Sales of goods | 53,978.23 | 7,293,281.43 |
| Guizhou Xijiu Co., Ltd. | Sales of goods | 3,372,637.17 | |
| Shanghai Moutai Trading Co., Ltd. | Sales of goods | 5,526,159.30 | |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Sales of goods | 1,723,539.82 | |
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | Labor cost | 571,925.36 | |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | Labor cost | 239,611.71 | |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Labor cost | 86,782.75 | 682,486.89 |
| Guizhou Xijiu Co., Ltd. | Labor cost | 560,412.74 | |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | Labor cost | 27,771.05 |
Notes to purchase or sale of goods, and rendering or receipt of labor services
□Applicable √N/A
B. Related entrusted management / contracting and entrusted management / outsourcingEntrusted management / contracting of the Company:
□Applicable √N/A
Description of related trusteeship / contract
□Applicable √N/A
Entrusted management / outsourcing of the Company
□Applicable √N/A
Description of related management / outsourcing
□Applicable √N/A
C. Related leaseThe Company as the lessor:
√Applicable □N/A
Unit: CNY
| Lessee | Types of leased assets | Lease income in the current period | Lease income in the prior period |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Plant and buildings | 488,903.16 | 330,275.22 |
| Kweichow Moutai Group Marketing Co., Ltd. | Plant and buildings | 495,146.47 | 495,146.47 |
The Company as the lessee:
√Applicable □N/A
Unit: CNY
| Lessor | Types of leased assets | Rental expenses of short-term lease and low-value asset lease subject to simplified treatment (if applicable) | Variable lease payments that are not included in the lease liabilities (if applicable) | Paid rent | Interest expenses on the lease liabilities assumed | Added right-of-use assets | |||||
| Current period | Prior period | Current period | Prior period | Current period | Prior period | Current period | Prior period | Current period | Prior period | ||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Plant and buildings | 864,000.00 | 864,000.00 | 4,752,406.27 | 4,683,241.02 | 5,142,834.35 | 157,301,942.56 | ||||
| China Kweichow Moutai Distillery (Group) Co., Ltd. | Land use rights | 4,523,090.00 | 1,130,772.50 | 2,677,710.63 | 2,732,123.11 | 80,715,978.86 | |||||
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | Plant and buildings | 1,578,921.60 | 789,460.80 | 245,211.33 | 286,594.20 | 8,429,239.61 | |||||
| Kweichow Zunyi Moutai Airport Co., Ltd. | Plant and buildings | 337,599.08 | 236,674.53 | 367,983.00 | |||||||
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | Plant and buildings | 3,582,654.81 | |||||||||
| Beijing Moutai Trading Co., Ltd. | Plant and buildings | 4,678.90 | 5,100.00 | ||||||||
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | Plant and buildings, machinery and equipment | 914,430.26 | 32,394,379.61 | ||||||||
Description of related lease
□Applicable √N/A
D. Remuneration of key management personnel
□Applicable √N/A
E. Other related party transactions
√Applicable □N/A
A. Kweichow Moutai Group Finance Co., Ltd. a majority-owned company of the Company, hasbusinesses with its related parties in terms of deposit, loan, discount and letter of guarantee.“Customer deposits and balances from banks and other financial institutions” mean the deposit balancesand accrued interests of the related parties at Kweichow Moutai Group Finance Co., Ltd.; “Interestexpenses” mean the interests on deposits payable by Kweichow Moutai Group Finance Co., Ltd. to therelated parties; “Interest income” means the interest collected by Kweichow Moutai Group Finance Co.,Ltd. from the related parties for its provision of the loan transaction; “Loans and advances” mean the loanbalances provided by Kweichow Moutai Group Finance Co., Ltd. to the related parties. (Unit: CNY)
a. Customer deposits and balances from banks and other financial institutions
| Related party | December 31, 2022 |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | 3,334,281,673.28 |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 1,655,007,713.02 |
| Kweichow Moutai Group Marketing Co., Ltd. | 4,349,581,600.42 |
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | 633,074,824.51 |
| Kweichow Zunyi Moutai Airport Co., Ltd. | 286,597,483.86 |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | 157,012,780.22 |
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 152,061,971.18 |
| Kweichow Moutaichun Marketing Company | 208,380,623.01 |
| ChangLi Moutai Liquor Trade Co., Ltd. | 233,713,993.20 |
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 244,758,921.61 |
| Guizhou Zunpeng Liquor Industry Co., Ltd. | 294,795,599.01 |
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 300,901,972.62 |
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | 48,833,771.36 |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 382,233,628.98 |
| Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. | 89,086,167.96 |
| Shanghai Moutai Trading Co., Ltd. | 52,064,594.69 |
| Beijing Moutai Trading Co., Ltd. | 113,853,429.58 |
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | 19,698,475.42 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 7,340,557.09 |
| Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. | 60,916,598.81 |
| Health Industry Co., Ltd. of Kweichow Moutai Group. | 19,125,210.06 |
| Guizhou Fuming Packaging Co. Ltd | 11,394,642.58 |
| Guizhou Jiuyuan Property Co., Ltd. | 29,753,148.43 |
| Kweichow Moutai (group) International Travel Service Co., Ltd. | 26,094,729.25 |
| Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | 23,867,085.01 |
| Shanghai Kweichow Moutai Industrial Co., Ltd. | 43,579,726.72 |
| Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. | 6,874,199.52 |
| Hotel Management Company of Moutai Group | 50,995,943.44 |
| Gui Zhou New Huaxi Glass Co., Ltd | 24,457,923.23 |
| Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. | 1,094,520.85 |
| Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | 711,787.31 |
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 208,512.26 |
| Moutai Financial Leasing Co., Ltd | 5,287.91 |
| Moutai (Guizhou) Investment Management Co., Ltd. | 4,032.97 |
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 3,514.91 |
| Maotai (Guizhou) Investment Fund (L.P.) | 846.41 |
| Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | 27.95 |
| Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. | 11,670,729.18 |
| Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology Development Co., Ltd. | 5,107.60 |
| Total | 12,874,043,355.42 |
b. Interest expenses
| Related party | Current reporting period |
| Guizhou Xijiu Sales Co., Ltd. | 28,811,523.39 |
| Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 27,445,198.75 |
| Kweichow Moutai Group Marketing Co., Ltd. | 17,622,560.74 |
| China Kweichow Moutai Distillery (Group) Co., Ltd. | 9,331,364.94 |
| Kweichow Moutaichun Marketing Company | 3,651,119.60 |
| Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 2,538,298.58 |
| ChangLi Moutai Liquor Trade Co., Ltd. | 2,364,961.46 |
| Guizhou Zunpeng Liquor Industry Co., Ltd. | 2,534,657.65 |
| Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | 1,601,934.07 |
| Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 1,825,616.62 |
| Kweichow Zunyi Moutai Airport Co., Ltd. | 2,331,439.32 |
| Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | 602,628.76 |
| Guizhou Baijin Liquor Sales Co., Ltd. | 262,285.04 |
| China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 712,081.81 |
| Guizhou Jiuyuan Property Co., Ltd. | 451,888.16 |
| Health Industry Co., Ltd. of Kweichow Moutai Group. | 228,228.42 |
| Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | 338,111.19 |
| Guizhou Maotai Ecological Agriculture Sales Co., Ltd. | 255,008.11 |
| Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 815,661.10 |
| Shanghai Moutai Trading Co., Ltd. | 236,597.15 |
| Beijing Moutai Trading Co., Ltd. | 204,185.32 |
| Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. | 242,065.55 |
| Guizhou Xijiu Co., Ltd. | 106,253.40 |
| Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. | 148,394.67 |
| Guizhou Baijin Liquor Co., Ltd. | 67,006.43 |
| Shanghai Kweichow Moutai Industrial Co., Ltd. | 99,284.51 |
| Kweichow Moutai (group) International Travel Service Co., Ltd. | 87,576.28 |
| Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 108,806.11 |
| Hotel Management Company of Moutai Group | 117,010.65 |
| Guizhou Fuming Packaging Co. Ltd | 95,285.07 |
| Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. | 59,060.03 |
| Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. | 41,444.56 |
| Gui Zhou New Huaxi Glass Co., Ltd | 44,176.66 |
| Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. | 20,844.06 |
| Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. | 18,273.96 |
| Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. | 154,157.83 |
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 1,655.27 |
| Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | 1,100.33 |
| Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology Development Co., Ltd. | 5,607.60 |
| Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. | 803.24 |
| Moutai Financial Leasing Co., Ltd | 19.23 |
| Moutai (Guizhou) Investment Management Co., Ltd. | 14.67 |
| Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 12.79 |
| Maotai (Guizhou) Investment Fund (L.P.) | 3.08 |
| Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | 0.08 |
| Total | 105,584,206.24 |
c. Loans and advances
| Item | Related party | December 31, 2022 |
| Mortgage loan | Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 57,730,000.00 |
| Credit loan | China Kweichow Moutai Distillery (Group) Co., Ltd. | 3,500,000,000.00 |
| Total | 3,557,730,000.00 | |
| Less: Provision for impairment of loans | 88,943,250.00 | |
| Carrying amount of loans and advances | 3,468,786,750.00 |
d. Interest income
| Item | Related party | Current reporting period |
| Loan interest income | China Kweichow Moutai Distillery (Group) Co., Ltd. | 126,595,256.84 |
| Loan interest income | Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 359,002.00 |
| Total | 126,954,258.84 |
e. Entrusted loan
| Principal | Borrower | December 31, 2022 |
| Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. | 9,955,184.18 |
f. Kweichow Moutai Group Finance Co., Ltd. a majority-owned company of the Company, has purchasedthe bonds issued by Guiyang GYB Financial Leasing Co., Ltd. from the open market at a cost of CNY 20million. The interest income confirmed in the current period is CNY 0.86 million. As at the end of theperiod, the balance of the provision for impairment of this bond investment is CNY 0.01million. Thebalance of the accrued interest is CNY 0.15 million. The carrying amount is CNY 20.14 million.
B. The deposit balance of the Company in Bank of Guizhou at the end of the period is CNY 20,851.24million (including a large-amount deposit of CNY 2,000 million). The interest income of the current periodis CNY 632.53 million. The investment income is CNY 63.84 million. Kweichow Moutai Group FinanceCo., Ltd., a majority-owned company of the Company, has purchased the bonds issued by Bank ofGuizhou Co., Ltd. from the open market at a cost of CNY 300 million. The interest income confirmed inthe current period is CNY 3.7 million. As at the end of the period, the balance of the provision forimpairment of this bond investment is CNY 0.17 million. The balance of the accrued interest is CNY 0.43million. The carrying amount is CNY 300.25 million.
11.5 Receivables and payables of related parties
A. Receivables
√Applicable □N/A
Unit: CNY
| Item | Related party | Closing balance | Opening balance | ||
| book balance | Bad debt provision | book balance | Bad debt provision | ||
| Other receivables | Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | 100,000.00 | 100,000.00 | ||
| Other receivables | China Kweichow Moutai Distillery (Group) Co., Ltd. | 88,817.40 | |||
Other receivables of Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate InvestmentDevelopment Co., Ltd. are the leasing security deposits to be paid by GUIZHOU MOUTAI CHIEWIMPORT AND EXPORT CO., LTD., a majority-owned company of the Company.
Other receivables of China Kweichow Moutai Distillery (Group) Co., Ltd. refer to receivable house rentof Guojiu Maotai Customized Marketing (Guizhou) Co., Ltd., a controlling subsidiary of the Company.
B. Payables
√Applicable □N/A
Unit: CNY
| Item | Related party | Book balance at the end of the reporting period | Book balance at the beginning of the reporting period |
| Other payables | China Kweichow Moutai Distillery (Group) Co., Ltd. | 907,115,478.82 | 806,014,062.86 |
| Other payables | Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | 591,695.00 | 591,695.00 |
| Other payables | Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 71,137,207.29 | 47,171,388.10 |
| Other payables | Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 57,704,428.54 | 70,400,854.08 |
| Other payables | Hotel Management Company of Moutai Group | 4,416,637.72 | 4,510,977.34 |
| Other payables | Shanghai Rencai Printing Affairs Co., Ltd. | 1,400,000.00 | 1,395,000.00 |
| Other payables | Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 1,015,643.50 | 949,643.50 |
| Other payables | Guizhou Fuming Packaging Co. Ltd | 1,000,000.00 | 890,000.00 |
| Other payables | Gui Zhou New Huaxi Glass Co., Ltd | 1,000,000.00 | 888,000.00 |
| Other payables | Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z | 1,000,000.00 | 965,000.00 |
| Other payables | Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. | 7,091,215.49 | |
| Other payables | Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 1,500,000.00 | 1,609,349.28 |
| Other payables | Beijing Moutai Trading Co., Ltd. | 700,000.00 | |
| Other payables | Kweichow Moutai Group Marketing Co., Ltd. | 260,000.00 | 260,000.00 |
| Other payables | Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payables | Shanghai Kweichow Moutai Industrial Co., Ltd. | 50,000.00 | 100,000.00 |
| Other payables | Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. | 23,777.50 | |
| Other payables | Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 13,710,130.00 | 158,992.00 |
| Other payables | Guizhou Xijiu Co., Ltd. | 0.39 | 504,376.93 |
| Other payables | China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 124,590.00 | 110,000.00 |
| Other payables | Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | 23,357.59 | |
| Other payables | Huagui Life Insurance Co., Ltd. | 37,375.00 | |
| Other payables | Shanghai Moutai Trading Co., Ltd. | 100,000.00 | |
| Other payables | Kweichow Moutai (group) International Travel Service Co., Ltd. | 212,350.00 | |
| Other payables | ChangLi Moutai Liquor Trade Co., Ltd. | 14,696.65 | |
| Accounts payable | Hotel Management Company of Moutai Group | 3,069,258.03 | 4,840,909.43 |
| Accounts payable | Kweichow Moutai Logistics Park Grain Storage Co., Ltd. | 59,076,608.00 | 58,396,226.41 |
| Accounts payable | Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 986,180.26 | 14,855,345.00 |
| Accounts payable | Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. | 8,776,190.66 | 15,019,725.64 |
| Accounts payable | Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. | 16,181,715.39 | |
| Accounts payable | Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 47,212,974.54 | 43,448,338.14 |
| Accounts payable | Kweichow Moutai Group Marketing Co., Ltd. | 2,217.00 | |
| Accounts payable | Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. | 246,490,916.16 | |
| Accounts payable | Guizhou Xijiu Co., Ltd. | 5,064,200.00 | |
| Contractual liabilities | Kweichow Moutai Group Marketing Co., Ltd. | 75,925,710.62 | 79,358,066.37 |
| Contractual liabilities | China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. | 2,978.76 | |
| Contractual liabilities | Shanghai Kweichow Moutai Industrial Co., Ltd. | 390,966.37 | 41,444.25 |
| Contractual liabilities | Beijing Moutai Trading Co., Ltd. | 1,292,962.83 | 221,238.94 |
| Contractual liabilities | Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. | 10,036.28 | 38,221.24 |
| Contractual liabilities | Kweichow Zunyi Moutai Airport Co., Ltd. | 8,046.90 |
| Contractual liabilities | Kweichow Moutai Distillery (Group) Logistics Co., Ltd. | 5,306.19 | |
| Leasing liabilities | China Kweichow Moutai Distillery (Group) Co., Ltd. | 248,946,125.77 | 245,892,878.88 |
| Leasing liabilities | Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co., Ltd. | 5,953,575.42 | 7,212,098.95 |
| Leasing liabilities | Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. | 33,308,809.87 |
11.6 Commitment of related parties
□Applicable √N/A
11.7 Others
□Applicable √N/A
12. Subsequent events
12.1 Important non-adjustment events
□Applicable √N/A
12.2 Profit distribution
√Applicable □N/A
Unit: CNY
| Profit or dividend to be distributed | 32,549,341,195.80 |
12.3 Sales return
□Applicable √N/A
12.4 Notes to other subsequent events after the balance sheet date
□Applicable √N/A
13. Notes to major account of the Company’s financial statements
13.1 Accounts receivable
A. Disclosure by aging
√Applicable □N/A
Unit: CNY
| Aging | Closing book balance |
| Within 1 year | 20,670,923,010.62 |
| Subtotal for within 1 year | 20,670,923,010.62 |
| 1-2 years | |
| 2-3 years | |
| 3-4 years | |
| 4-5 years | |
| More than 5 years | |
| Total | 20,670,923,010.62 |
B. Disclosed by bad debt provision methods
√Applicable □N/A
Unit: CNY
| Category | Closing balance | Opening balance | ||||||||
| book balance | Bad debt provision | Carrying amount | book balance | Bad debt provision | Carrying amount | |||||
| Amount | Proportion (%) | Amount | Proportion (%) | Amount | Proportion (%) | Amount | Proportion (%) | |||
Bad debt provision assessed by groups:
□Applicable √N/A
C. Top five accounts receivable based on debtors
√Applicable □N/A
Unit: CNY
| Entity | Closing balance | Proportion to total closing balance of accounts receivable (%) | Closing balance of bad debt provision |
| Kweichow Moutai Sales Co., Ltd. | 18,219,591,126.66 | 88.14 | |
| GUIZHOU MOUTAI CHIEW IMPORT AND EXPORT CO., LTD. | 1,376,666,440.96 | 6.66 | |
| Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | 1,074,665,443.00 | 5.20 | |
| Total | 20,670,923,010.62 | 100.00 |
13.2 Other receivables
A. Presentation of items
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 15,092,761.22 | 9,210,501.43 |
| Total | 15,092,761.22 | 9,210,501.43 |
B. Other receivablesa. Disclosure by aging
√Applicable □N/A
Unit: CNY
| Aging | Book balance at the end of the reporting period |
| Within 1 year | 14,654,823.06 |
| Subtotal for within 1 year | 14,654,823.06 |
| 1-2 years | 492,822.00 |
| 2-3 years | |
| 3-4 years | 7,313.00 |
| 4-5 years | |
| More than 5 years | 37,951.22 |
| Total | 15,192,909.28 |
| Bad debt provision assessed individually | ||||||||||
| Bad debt provision assessed by groups | 20,670,923,010.62 | 100 | 20,670,923,010.62 | 1,480,080,983.77 | 100 | 1,480,080,983.77 | ||||
| Including: | ||||||||||
| Combination of related parties within the scope of consolidation | 20,670,923,010.62 | 100 | 20,670,923,010.62 | 1,480,080,983.77 | 100 | 1,480,080,983.77 | ||||
| Total | 20,670,923,010.62 | / | / | 20,670,923,010.62 | 1,480,080,983.77 | / | / | 1,480,080,983.77 | ||
b. Details of classification by nature
√Applicable □N/A
Unit: CNY
| Nature | Book balance at the end of the reporting period | Book balance at the beginning of the reporting period |
| Petty cash | 5,471,487.70 | 2,840,284.11 |
| Current Account | 9,721,421.58 | 11,579,530.20 |
| Total | 15,192,909.28 | 14,419,814.31 |
c. Details of bad debt provision
√Applicable □N/A
Unit: CNY
| Bad debt provision | Stage I | Stage II | Stage III | Total |
| 12month ECL | Lifetime ECL (not impaired) | Lifetime ECL (impaired) | ||
| As at January 1, 2022 | 81,167.43 | 5,128,145.45 | 5,209,312.88 | |
| Balance at 1 January 2022 in the current period | ||||
| -- Transfer to stage II | -25,626.74 | 25,626.74 | ||
| -- Transfer to stage III | ||||
| -- Reverse to stage II | ||||
| -- Reverse to stage I | ||||
| Provision | 6,858.28 | 41,168.37 | 48,026.65 | |
| Reversal | 56,898.95 | 2,480,192.52 | 2,537,091.47 | |
| Elimination | ||||
| Write-off | 2,620,100.00 | 2,620,100.00 | ||
| Other changes | ||||
| As at December 31, 2022 | 5,500.02 | 94,648.04 | 100,148.06 |
Explanations on significant changes in the book balance of other receivables where there are changes inprovision for the current period:
□Applicable √N/A
d. Details of bad debt provision
√Applicable □N/A
Unit: CNY
| Category | Opening balance | Changes in the current period | Closing balance | |||
| Provision | Recovery or reversal | Elimination or write-off | Other changes | |||
| Bad debt provision assessed by aging | 5,209,312.88 | 48,026.65 | 2,537,091.47 | 2,620,100.00 | 100,148.06 | |
| Total | 5,209,312.88 | 48,026.65 | 2,537,091.47 | 2,620,100.00 | 100,148.06 | |
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
e. Other receivables actually charged off in the current period
√Applicable □N/A
Unit: CNY
| Item | Amount charged off |
| Other receivables actually charged off | 2,620,100.00 |
Specifically, significant other receivables charged off:
□Applicable √N/A
Notes to charge-off of other receivables:
□Applicable √N/A
f. Top five other receivables based on debtors
√Applicable □N/A
Unit: CNY
| Entity | Nature | Closing balance | Aging | Proportion to the total closing balance of other receivables (%) | Bad debt provision Closing balance |
| China Securities Depository and Clearing Co., Ltd. Shanghai Branch | Current Account | 3,000,000.00 | Within 1 year | 19.75 | |
| Chinese Research Academy of Environmental Sciences | Current Account | 1,520,000.00 | Within 1 year | 10.00 | |
| Luo Meng | Petty cash | 638,979.43 | Within 1 year | 4.21 | |
| Wu Lanlan | Petty cash | 519,215.00 | Within 1 year | 3.42 | |
| Luo Nanbo | Petty cash | 502,197.00 | Within 1 year | 3.31 | |
| Total | / | 6,180,391.43 | / | 40.69 |
A. Receivables of China Securities Depository and Clearing Corporation Limited Shanghai Branch arethe service charges for distribution of cash dividends.B. Receivables of Chinese Research Academy of Environmental Sciences are the prepaid COP15 forumfee for Moutai ecological civilization practice exchange and publicity.C. Luo Meng is an employee of the Company, and the accounts are the borrowings for handling thelitigation and anti-counterfeit businesses.D. Wu Lanlan is an employee of the Company, and the money is borrowed for applying for license forthe vehicle of the Company.E. Luo Nanbo is an employee of the Company, and the accounts are the borrowings for handling thelitigation and anti-counterfeit businesses.
13.3 Long-term equity investments
√Applicable □N/A
Unit: CNY
| Item | Closing balance | Opening balance | ||||
| book balance | Provision | Carrying amount | book balance | Provision | Carrying amount | |
| Investment in subsidiaries | 1,624,535,587.55 | 1,624,535,587.55 | 1,624,535,587.55 | 1,624,535,587.55 | ||
| Total | 1,624,535,587.55 | 1,624,535,587.55 | 1,624,535,587.55 | 1,624,535,587.55 | ||
Investments in subsidiaries
√Applicable □N/A
Unit: CNY
| Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Provision for impairment in the | Closing balance of provisions for impairment |
| current period | ||||||
| Kweichow Moutai Sales Co., Ltd. | 9,500,000.00 | 9,500,000.00 | ||||
| GUIZHOU MOUTAI CHIEW IMPORT AND EXPORT CO., LTD. | 5,600,000.00 | 5,600,000.00 | ||||
| Kweichow Moutai Group Finance Co., Ltd. | 1,275,000,000.00 | 1,275,000,000.00 | ||||
| Moutai Custom Marketing (Guizhou) Co., Ltd. | 14,000,000.00 | 14,000,000.00 | ||||
| Beijing Friendship Messenger Trading Co., Ltd. | 22,507,157.75 | 22,507,157.75 | ||||
| Kweichow Moutai Paris Trading | 80,728,429.80 | 80,728,429.80 | ||||
| Guizhou Laymau Liquor Industry Co., Ltd. | 17,200,000.00 | 17,200,000.00 | ||||
| Kweichow Moutai-Flavor Liquor Marketing Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||
| Total | 1,624,535,587.55 | 1,624,535,587.55 |
13.4 Operating revenue and costs of sales
A. Operating revenue and costs of sales
√Applicable □N/A
Unit: CNY
| Item | Current period | Prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 70,970,544,362.02 | 10,230,567,077.09 | 37,237,062,420.65 | 8,898,857,511.93 |
| Others | 331,252,514.91 | 189,675,060.37 | 107,836,543.52 | 93,055,316.44 |
| Total | 71,301,796,876.93 | 10,420,242,137.46 | 37,344,898,964.17 | 8,991,912,828.37 |
Note: Other business revenue and costs are mainly the revenue and costs of the business of MoutaiInternational Hotel and ice cream business.
B. Description of performance obligation
√Applicable □N/A
The revenue is confirmed when the customer acquires the control of the goods agreed in the contract andthe Company fulfills the contract performance obligation.
C. Description of allocation to the remaining performance obligations
√Applicable □N/A
The revenue of the performance obligations which have been contracted but not fulfilled or notcompletely fulfilled in the current reporting period is CNY 1,179,446.26.
13.5 Investment income
√Applicable □N/A
Unit: CNY
| Item | Current period | Prior period |
| Income from long-term equity investments under cost method | 47,596,490,707.35 | 44,741,153,786.43 |
| Income from long-term equity investments under equity method | ||
| Investment income on disposal of long-term equity investments | ||
| Investment income from holding held-for-trading financial assets |
| Dividend income from holding investments in other equity instruments | ||
| Interest income from holding debt investments | ||
| Interest income from holding other debt investments | ||
| Investment income from disposal of held-for-trading financial assets | ||
| Investment income from disposal of investments in other equity instruments | ||
| Investment income from disposal of debt investments | ||
| Investment income from disposal of other debt investments | ||
| Income from debt reconstruction | ||
| Investment income from disposal of other debt investments | -1,505,395.94 | |
| Interest income from holding large-amount deposits | 63,840,000.00 | 59,761,333.33 |
| Total | 47,660,330,707.35 | 44,799,409,723.82 |
14. Supplementary information
14.1 Details of current non-recurring profit and loss
√Applicable □N/A
Unit: CNY
| Item | Amount | Description |
| Gains and losses on disposal of non-current assets | -20,567,757.19 | |
| Government grant included in the current profit and loss (except for the government grant which are closely related to the business of the company and are in accordance with the national unified standard quota) | 14,973,304.55 | |
| Other non-operating income and expenses except the above items | -157,251,041.33 | |
| Other profit and loss items conforming to the definition of non-recurring profit and loss | 63,840,000.00 | |
| Less: The impact of income tax | -24,751,373.49 | |
| The impact on non-controlling interests(After tax) | 1,174,838.97 | |
| Total | -75,428,959.45 |
The reasons shall be explained for the non-recurring profit and loss items defined by the companyaccording to the definition of “explanatory Announcement No. 1 of information disclosure of companiesoffering securities to the public - non recurring profit and loss” and the items of non-recurring profit andloss listed in the explanatory announcement of information disclosure of companies offering securities tothe public No. 1 - non recurring profit and loss as recurring profit and loss items.
□Applicable √N/A
14.2 Return on net assets and earnings per share
√Applicable □N/A
| Profit in the reporting period | Weighted Average return on net assets (%) | Earnings per share | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to ordinary shareholders of the company | 30.26 | 49.93 | 49.93 |
| Net profit attributable to ordinary shareholders of the company after deducting non-recurring profit and loss | 30.29 | 49.99 | 49.99 |
14.3 Differences of accounting data under domestic and foreign accounting standards
□Applicable √N/A
Chairman: Ding XiongjunDate of approval and submission by the Board: March 29, 2023
Amendment
□Applicable √N/A