Wuliangye Yibin Co., Ltd.
Annual Report 2019
President Zeng Congqin (signature)
April 28, 2020
Contents
Section I Important Notice, Contents, and Interpretations ...... 3
Section II Company Profile and Main Financial Highlights ...... 5
Section III Summary of Company Business ...... 10
Section IV Discussion and Analysis of Operation ...... 12
Section V Significant Matters ...... 32
Section VI Changes in Shares and Shareholders ...... 50
Section VII Preferred Share ...... 55
Section VIII Convertible Corporate Bonds ...... 56
Section IX Directors, Supervisors, Senior Management and Employees ...... 57
Section X Corporate Governance ...... 66
Section XI Corporate Bonds ...... 72
Section XII Financial Report ...... 73
Section XIII Reference File Directory ...... 190
Section I Important Notice, Contents, and Interpretations
I. The board of directors, the board of supervisors, directors, supervisors, and officersof the Company undertake that the content of the Annual Report is true, accurate, andcomplete, and contains no false record, misleading statements, or major omission, andassume joint and several legal liabilities arising therefrom.
II. Zeng Congqin, the person in charge of the Company, Luo Wei, the person incharge of the accounting work, and Luo Jun, the person in charge of the accountinginstitution (accountant in charge) declare and ensure the truthfulness, accuracy, andintegrity of the financial report in the Annual Report.
III. Eight directors should be present at the board meeting auditing the Report andactually seven directors attended. Director Zou Tao was on a business trip and voted on theresolution of this meeting by means of communication. Mr. Han Cheng, an alternatedirector, attended the board meeting without voting rights.
IV. The future plan, development strategy, and other forward-looking statementsincluded in the Report shall not constitute the Company's substantial commitment to theinvestors due to uncertainties, and we remind the investors to notice the investment risks.
V. The Company has disclosed the potential risks in the Report, and we remind theinvestors to notice the investment risks.
VI. The Company designated China Securities Journal, Shanghai Securities News,Securities Times, and CNINFO as the information-disclosure media of the Annual Report2019 of the Company and all the information of the Company shall be subject to theinformation published on the above media.
VII. The profit distribution plan reviewed and adopted at the Board Meeting of theCompany is that: Based on the total capital stock of 3,881,608,005, the Company willdistribute the dividend of RMB 22 in cash (tax inclusive) and 0 bonus share (tax inclusive)to all shareholders for every 10 shares and will not transfer the capital reserve to increasecapital stock.
Interpretations
Terms refers to InterpretationsCompany, the Company or Wuliangye refers to Wuliangye Yibin Co., Ltd.Yibin State-
and Administration Commission
refers to
State-
owned Assets Supervision | owned Assets Supervision and Administration Commission of Yibin |
Municipal Government
Group Company
refers to Sichuan Yibin Wuliangye Group Co., Ltd.Push Group Company refers to Sichuan Yibin Push Group Co., Ltd.Global Group Company refers to Sichuan Yibin Global Group Co., Ltd.Anji Logistic Group Co., Ltd. refers to Sichuan Anji Logistic Group Co., Ltd.Sacred Mountain Molin Company refers to
Wuliangye Group Company or theSacred Mountain Molin Group Co., Ltd.,
SichuanHaida Group Company refers to Sichuan Haida Rubber Group Co., Ltd.Finance Company refers to
Sichuan Yibin Wuliangye Group Finance Co.,
Ltd.I&E Company refers to Yibin Wuliangye Group I&E Co., Ltd.Wuliang Nongxiang Company refers to
Sacred Mountain Molin Group Co., Ltd.,Wuliang NongXiang Series Baijiu Yibin
Co.,Ltd.Creart Company refers to Yibin Wuliangye Creart Co., Ltd.Environmental Protection Company refers to
Sichuan Yibin
Wuliang NongXiang Series Baijiu YibinWuliangye Environmental
Protection Co., Ltd.
Section II Company Profile and Main Financial HighlightsI. Company informationStock abbreviation Wuliangye Stock code 000858Stock exchange for listing Shenzhen Stock ExchangeCompany name in Chinese
宜宾五粮液股份有限公司Company short name in
Chinese
五粮液Company name in English
(if any)
WULIANGYE YIBIN CO.,LTD.Company short name in
English (if any)
WLYLegal representative of the
Company
Zeng CongqinRegistered address No. 150, Minjiang West Road, Cuiping District, Yibin, SichuanZip code of the registered
address
644007Office address No. 150, Minjiang West Road, Cuiping District, Yibin, SichuanZip code of the officeaddress
644007Website http://www.wuliangye.com.cn
E-mail 000858-wly@sohu.com
II. Contact person and contact information
Secretary of the board of directors Representative for securities affairsName Peng Zhifu Xiao Xiangfa, Li XinyiAddress
No. 150, Minjiang West Road, Cuiping
District, Yibin, Sichuan
No. 150, Minjiang West Road, Cuiping
District, Yibin, SichuanTel (0831) 3567000, 3566938, 3567988 (0831) 3567000, 3566938, 3567988Fax (0831) 3555958 (0831) 3555958E-mail 000858-wly@sohu.com 000858-wly@sohu.com
III. Information disclosure and preparation placeName of media selected by the Company for
information disclosure
China Securities Journal, Shanghai Securities News, Securities
Times
Website designated by China SecuritiesRegulatory Commission for the Annual Report
http://www.cninfo.com.cnPreparation place of the Company's Annual
Report
Board officeIV. Registration changes
Organization code 91511500MA62A0WM8PChanges in primary business since theCompany's listing (if any)
No change during the reporting periodPrevious changes of controllingshareholders (if any)
No change during the reporting periodV. Other relevant informationAccounting firm engaged by the Company
Name of accounting firm Sichuan Huaxin (Group) CPA (LLP)Office address of the accounting firm 28/F, South Jinmaolidu, No.18, Ximianqiao Street, Chengdu, SichuanName of signatory accountant Li Min, Liu JunThe sponsor institution engaged by the Company to perform the continuous supervisionresponsibility during the reporting period
√ Applicable □ Not applicable
Name of sponsor institution
Office address ofsponsor institution
Name of sponsor
representative
Continuous supervision periodGuotai Junan Securities Co., Ltd.
No.618, Shangcheng
Pilot Free Trade Zone
Teng Qiang, Liu
Qiqun
April 20, 2018-December 31, 2019
Financial consultant engaged by the Company to perform the continuous supervision responsibilityduring the reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial highlights
Whether the Company needs to retroactively adjust or restate the accounting data of the previousyears
□ Yes √ No
Year 2019 Year 2018
Increase/decreasecompared with the
previous year
Year 2017
Operating revenue (RMB) 50,118,105,877.14
Road, China (Shanghai)
40,030,189,599.87
25.20%
30,186,780,409.14
Net profit attributable to
(RMB)
17,402,164,190.16
shareholders of the listed company |
13,384,246,683.60
30.02%
9,673,721,498.15
Net profit attributable to
after deducting non-
recurring gains |
and losses (RMB)
17,405,930,787.45
13,398,843,689.90
29.91%
9,642,325,077.81
Net cash flows from operating
activities (RMB)
23,112,072,040.66
12,317,359,034.90
87.64%
9,766,175,822.66
Basic earnings per share
(RMB/share)
4.483
3.474
29.04%
2.548
Diluted earnings per share
(RMB/share)
4.483
3.474
29.04%
2.548
Weighted average return on equity
25.26%
22.80%
Increasing by 2.46%
19.38%
End of Year 2019 End of Year 2018
Increase/decreaseat the end of the
current yearcompared with theend of the previous
year
End of Year 2017
Total assets (RMB) 106,396,972,333.66
86,094,265,733.09
23.58%
70,922,626,679.43
Net assets attributable to
(RMB)
74,290,700,662.22
shareholders of the listed company |
63,487,270,080.56
17.02%
53,334,081,189.48
VII. Differences in accounting data under the Foreign Accounting Standards andChinese Accounting Standards
1. Differences between the net profits and net assets in financial report disclosed under the
International Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the InternationalAccounting Standards and Chinese Accounting Standards.
2. Differences between the net profits and net assets in financial report disclosed under the
Foreign Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the ForeignAccounting Standards and Chinese Accounting Standards.
3. Reasons for differences in accounting data under the Foreign Accounting Standards and
Chinese Accounting Standards
□ Applicable √ Not applicable
VIII. Quarterly key financial highlights
Unit: RMB
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterOperating revenue 17,590,253,203.22
9,560,791,649.53
9,950,587,240.24
13,016,473,784.15
Net profit attributable toshareholders of the listed
company
6,475,113,303.33
2,860,524,075.93
3,207,909,936.35
4,858,616,874.55
Net profit attributable toshareholders of the listed
company after deductingnon-recurring gains and losses
6,540,037,045.57
2,854,311,216.69
3,212,022,218.38
4,799,560,306.81
Net cash flows from operating
activities
7,926,569,918.50
439,242,710.54
7,825,510,025.56
6,920,749,386.06
Whether there are significant differences between the above-mentioned financial index or the totalnumber and the relevant financial index disclosed in the Company’s quarterly report and semi-annualreport
□ Yes √ No
IX. Items and amounts of non-recurring profit/loss
√ Applicable □ Not applicable
Unit: RMBItem
Amount of Year
2019
Amount of Year
2018
Amount of Year
2017
CommentsGain or loss on disposal of non-current assets(including the write-off part of the provision forimpairment of assets)
-1,571,612.06
3,428,495.17
3,657,328.20
Governmental subsidy recorded in currentprofit/loss (except those government subsidies,which are closely related to the business of acompany and
enjoyed in accordance with a certain |
standard quota or quantity of the state)
129,760,347.41
88,840,102.95
35,909,406.36
Fund occupation fee collected from non-financialenterprises and recorded in current profit/loss
15,503,633.45
10,373,763.35
4,241,705.60
Other non-operating revenue and expenditureexcept for the aforementioned items
-135,436,782.11
-110,025,211.13
1,308,010.82
Less: Impact on income tax -4,831,273.10
-8,928,533.56
9,653,995.55
Impact on minority equity (after-tax) 16,853,457.08
16,142,690.20
4,066,035.09
Total -3,766,597.29
-14,597,006.30
31,396,420.34
--
Concerning the non-recurring profit/loss defined by Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and theitems defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
Non-recurring Profit/Loss, explain reasons.
□ Applicable √ Not applicable
The Company had no item to be defined as recurring profit/loss in accordance with thenon-recurring profit/loss defined and listed by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public - Non-recurring Profit/Loss.
Section III Summary of Company BusinessI. Primary business of the Company in the reporting periodThe Company is mainly engaged in liquor production and sales. According to the Guidelines for theIndustry Classification of Listed Companies (2012 Revision) issued by China Securities RegulatoryCommission, liquor industry belongs to "liquor, beverage, and refined tea manufacturing industry" (C15).The primary business of the Company had no change during the reporting period. "Wuliangye" liquor,main product of the Company, is a typical strong aromatic Chinese spirit of China. The Company alsodevelops series liquor products with complete categories and distinctive nuance, including WuliangChun (Spring), Wuliang Chun, Wuliang Te Qu and Tou Qu, Mian Rou Jian Zhuang, to meet thediversified demands of consumers of different levels.
In 2019, with the increasing downward pressure of macroeconomy at home and abroad, the growthrate of the liquor industry slowed down, the competition became more intensive, the concentration ratioof the industry further increased, and the competitive advantages of famous liquor enterprises werehighlighted. During the reporting period, the Company seized the new development opportunities andincreased the brand value significantly through the marketing organization reform, product iteration andupgrading, digital transformation, and other reform measures, further consolidating its leading position inthe strong aromatic Chinese spirits market.II. Major changes in main assets
1. Major changes in main assets
□ Applicable √ Not applicable
2. Main overseas assets
□ Applicable √ Not applicable
III. Analysis of core competitiveness
Does the Company need to comply with the disclosure requirements for special industry?
No
The Company has six unique advantages, and these constitute the traditionalcore-competitiveness of Wuliangye. 1) Wuliangye’s natural, ecological environment makes it unique;
2) The unique 600-years microbiota of its ancient caves has been growing continuously since the Ming
Dynasty to the present day; 3) The high-quality, world-famous Wuliangye is brewed with five uniquegrain formulas; 4) It uses unique brewing technologies and has a unique microbial zone within theWuliangye Ten-Mile Liquor City; 5) The unique, harmonious quality of Wuliangye makes it a typical
representative of Chinese culture; 6) The scale of the unique “Ten-Mile Liquor City” enables Wuliangye’sbrand value to rank the top in the liquor industry.
In 2019, the Company took various simultaneous measures to actively promoteorganizational reform, strengthen digital transformation, optimize product systems, andconstruct a quality, product lifecycle management system. In doing so, it improved its marketingcapability, its brand-equity, and it strengthened core competitiveness.The Company first focused on building a new factory-trader relationship. It strengthened marketreform and digital transformation, and then made further improvements to its marketing and servicecontrol. The marketing organization became more professional and streamlined, which in turn helpedimproving the capabilities of the marketing team. The Company has been speeding up its digitaltransformation, and was honored as a "Model of Experiential Marketing", which could be deemed as themarket’s affirmation of Wuliangye’s efforts in digital transformation.
The Company then focused on creating a better life for consumers. It has been enhancing itstechnology innovation, traceability management and process control, improving its ability to strictlycontrol product quality and supply capability. The Company constructed a number of high-level researchplatforms to continuously improve technological innovation. The Company enhanced its grain supply bystrengthening production base construction, and vigorously promoted a product traceabilitymanagement system centered on the supply of special grains. It founded the “Specialist Brewing GrainTechnological Research Center” in Sichuan. This was the first domestic research platform aboveprovincial level in this field and academician Yuan Longping was invited to serve as a consultant at thecenter. The center aims to strengthen research and joint efforts in breeding and improving specialbrewing grains. The Company strengthened its process controls through internal system construction,promoted the efficiency of a total quality management system, and increased the yield of high-qualityliquor continuously.
Finally, the Company focused on implementing the “three characteristics and one recognition”requirements to improve product mix and promote brand culture. During the reporting period, Wuliangyecontinuously optimized its product mix, continuously reshaped the liquor brand matrix series, and set upthe Wuliangye Culture Research Institute. It continuously promoted brand culture, coordinated traditionaland new media advertisement, strengthened communication through key projects and major events, andactively promoted the Company internationally. All these activities strengthened Wuliangye’s brandreputation, lifting the brand value and influence continuously.
Section IV Discussion and Analysis of OperationI. OverviewIn 2019, the global economy was full of uncertainties. The Sino-US trade war was at deadlock, theexchange rate was changing frequently, the environment for domestic and international trade wascomplex and grim - as was the macroeconomic situation, and the overall market was full of challenges.However, two things remained unchanged. There was an overall trend of transforming and upgradingdomestic consumption, and a more specific trend to concentrate on famous and high-quality liquorenterprises in the liquor industry. During the reporting period, the Company kept up with new trends inthe market, seized new development opportunities, set new requirements for high-quality development,focused on strengthening its weak points, gave play to strong points, and reached a new momentum byupgrading. It pushed forward the “second entrepreneurship” ideology, and achieved record-highbusiness performance, reaching annual sales over RMB ten billion for three consecutive years. In 2019,the Company's operating revenue increased 25.20% year-on-year, reaching RMB 50.118 billion. The netprofit attributable to shareholders of the listed company reached RMB 17.402 billion, with 30.02%year-on-year growth.
In 2019, the Company adjusted its strategy and optimized measures to deepen structural reform atthe supply-side. It improved its shortcomings, strengthened its advantages, and made significantimprovements to its brand image, product quality and marketing capability.
1. Focus on optimizing product mix and promoting the brand culture; brand influence
expanded significantly.
1) The Company optimized the Wuliangye product system in order to provide top-quality, aromatic
spirits. During the reporting period, the Company successfully launched the eighth-generation version ofthe classic Wuliangye, which is warmly welcomed by the market, and its market price rose steadily toover RMB 1,000 per bottle. The product focused on meeting consumers’ demand for a better life, andtook advantages of its centuries-old (dated back to Ming and Qing dynasty) cellars. The Companydesignated workshops, cellars and craftsmen to strategically create a luxury 501 model of the classicWuliangye. In accordance with the Company’s global strategy, it signed strategic cooperationagreements with Pernod Ricard and other internationally-renowned wine enterprises to initiate R&D foran international Wuliangye product.
2) The Company set up a system for its series liquor products and continued remodeling its brand
matrix. The Company continued to downsize high-imitation products that had seriously undermined thebrand value of Wuliangye. Instead it focused on building four nationwide products: Wuliang Chun(Spring), Wuliang Chun, Wuliang Te Qu, and Jian Zhuang. It adhered to the principle of “focusing onmedium and high-end products, on self-owned brand, and on its core brand”, to ensure its brands withdiversified images, distinctive values and recognizable price bracket.
3) The Company increasingly promoted brand awareness to show the new image of Wuliangye
liquor. Sticking to the brand positioning of “Strong Aromatic Spirits of Great Power, Liquor Magnate ofChina” and digging deeply the brand connotation of “Essence of Nature, National Spirit, WonderfulWorld”, the Company highlighted advantages of the cellars of Wuliangye, technological advantages,formula advantages and other core elements, and told the Wuliangye story. The Company effectivelycombined traditional and new media to coordinate advertising, strengthened brand promotion through aseries of key projects and major events, and further enhanced its international reputation and brandinfluence by participating in the China International Import Expo and other international events. Duringthe reporting period, the Company was successfully recognized by the UN as a symbolically Chinesebrand. Wuliangye ranked 302nd in the World Brand Lab’s 500 Most Influential Worldwide Brands, rising24 places from the previous year. It also ranked 40th in Asia's 500 Most Influential Brands, rising eightplaces from the previous year. It ranked 19th in China’s 500 Most Valuable Brands, rising one place fromthe previous year.
2. Focus on platform construction, traceability management and process controls; product
quality improved significantly.
1) The Company promoted the construction of a technological platform to strengthen innovation.
The Company insisted on combining tradition with innovation, and, in order to improve Wuliangye’squality, it vigorously promoted the construction of a of a science and technology innovation platform toincrease R&D on brewing ecology and technology, and on liquor flavors. During the reporting period, theCompany newly established a range of top research platforms to ensure improvements in liquor quality,including the Sichuan Brewery Special Grain Engineering Research Center and the Provincial SichuanSolid Fermentation Liquor Brewing Engineering Research Center.
2) The Company upgraded its grain production base to guarantee a better grain supply. The
Company sped up the upgrade and construction of a special brewing grain production base. It vigorouslypromoted the construction of a traceability management system for its products, centered on specialgrain supplies. It built a "from seed to liquor" product lifecycle quality system, allowing it to pre-inspect,
trace, and control grain supply and ensure the quality and stability.
3) The Company built a quality management system and strengthened its process control. The
Company promoted the efficient operations of its total quality management system to establish anall-round production monitoring and ensure a steady growth of its first-class liquor output.
3. Focus on market reform, digital transformations, and marketing team construction;
marketing capabilities improved significantly.
1) The Company reformed its marketing department to improve its market responsiveness. During
the reporting period, the Company completely the transformation from traditional marketing to modernmarketing, realizing the "specializations horizontally and flat management vertically". Wuliangye’sheadquarters reformed its Brand Department, and each region reformed by carrying out flatmanagement and decentralizations. The regions were divided into 21 marketing areas and 60 marketingbases, significantly improving their capabilities to explore the market. Series liquor companies, includingthe original Series Liquor, Te Qu and Tou Qu, and Wuliang Chun, were restructured and integrated intothe newly established Wuliang Nongxiang Company, allowing a more collaborative management, moreconcentrated resources, and more rapid market responses.
2) The Company promoted marketing digitalization and strengthened its marketing efforts. The
Company successively signed strategic cooperation agreements with Alibaba, Huawei and a number ofother companies. It made full use of the advantages of each party to transform itself into a digitallymarketing enterprise. The Company established a digital marketing system, and successfully introducedmodes for trading controls and profit divisions. It mastered the purchase, sale/deals of stock in real-timeby adopting a layer-by-layer binding and code-scanning system, allowing it to monitor channel salestransparently, to monitor channel abnormalities in real-time, and to establish a highly coordinatedchannel system. The Company established a preliminary closed-loop management system fordigitalization between headquarters and regional divisions, and it systematically improved thecoordination and execution of its marketing efforts.
3) The Company expanded its marketing team, optimized their structures, and enhanced team
members’ capabilities. The Company supplemented 452 salesmen and 500 visiting salesmen by openlyrecruiting and selecting individuals on a level-by-level basis. The series liquor companies alsointroduced 181 salesmen, and the staff structure were optimized in terms of ages, professional ability,and work experience. The marketing team’s ability in understanding the market, getting closer toconsumers, and serving dealers has been significantly improved.
4. Focus on developing key projects, such as expanding production, storage, and the
packaging capacity; open doors for future development opportunities.During the reporting period, the Company actively promoted key projects that brought benefits andlaid a foundation for future opportunities. 300-thousand-ton pottery jar aging spirit room (phase I), andrenovation of Workshop 503 have been completed; the liquor packaging and integrated smartstorage-and-delivery project, the technological innovation project for storing blended liquor, and thesupporting infrastructure project at Hongba New Park have been commenced; preparations have beenmade for a special processing tank for making liquor grains, and a project is underway for an automaticgrinding machine; the Company has carried out construction at the ecological park and at the 5A scenicarea.
5. Focus on ensuring safe production, saving energy and protecting the environment,
providing assurances that development is of the highest quality.During the reporting period, the Company’s production sector had no safety incidents, or incidentsthat caused serious injury or death. For 35 consecutive years, it has had no fire accidents. The Companyactively promoted key environmental protection projects including a centralized sewage treatmentsystem and a comprehensive treatment program for the Songgong River. It completed pipe networkreconstruction project of Jiangbei Park, Phase III of energy saving and emission reduction from coal togas project; The Company discharged 100% of its “three wastes” according to the most recent standards,and experienced no minor/major environmental pollution accidents throughout the year. The Companywas honored for three consecutive years as a “Sichuan Environmental Integrity Enterprise”, honored asone of the first “Sichuan Comprehensive Industrial Resources Enterprises”, and won the brand award asa “Sichuan Energy Conservation and Environmental Protection Model”.
6. Focus on corporate governance and strengthening information disclosure; significantly
optimized the Company’s image in the capital market.During the reporting period, the Company had standardized its methods of information disclosureaccording to relevant laws, continued to optimize investor relations management mechanism, andfurther expanded the scope and come up with innovative ways for communicating with investors. Thesemeasures were met with unanimous approval from the regulatory authorities and investors. For fiveconsecutive years, the Company was graded Level A (the highest level) in its information disclosureassessment by the Shenzhen Stock Exchange. It won multiple awards, including the “Best Round TableBoard” for its Directors & Boardroom Staff, the “Best Board Prize” at the National Business Daily’s 2019
Listed Chinese Companies Awards, and CNR’s Most Trustworthy Listed Company to Investors in 2018.It was also listed as a top enterprise on the “2018 Enterprises for Annual Activities” list, on p5w.net’s“Listed Enterprises for IR interactions”, and Xueqiu.com’s “Best Listed Company for Investor Relations”.
II. Analysis of primary business
1. Overview
See "I. Overview" in "Discussion and analysis of operation".
2. Revenue and cost
(1) Operating revenue composition
Unit: RMB
Year 2019 Year 2018
Year-on-yearincrease/decrease
Amount
Proportion inoperating revenue
Amount
Proportion inoperating revenueTotal operatingrevenue
50,118,105,877.14
100%
40,030,189,599.87
100%
25.20%
By industry
Manufacturing
industry
50,118,105,877.14
100%
40,030,189,599.87
100%
25.20%
By product
Liquors 46,301,838,985.74
92.39%
37,751,933,113.60
94.31%
22.65%
Including:
High-end liquor
39,670,724,562.67
79.15%
30,189,147,385.40
75.42%
31.41%
Middle-andlow-end liquor
6,631,114,423.07
13.23%
7,562,785,728.20
18.89%
-12.32%
Plastic products 2,540,536,361.21
5.07%
1,851,618,283.27
4.63%
37.21%
Printing 124,811,258.13
0.25%
54,501,116.15
0.14%
129.01%
Glass bottle 194,271,586.53
0.39%
97,655,529.08
0.24%
98.94%
Others 956,647,685.53
1.91%
274,481,557.77
0.68%
248.53%
By regionDomestic 50,118,105,877.14
100%
40,030,189,599.87
100%
25.20%
Remarks:
1. High-end liquor: refers to main products with selling price (tax inclusive) of RMB 120 and above
among the alcohol products (500ml/bottle) of the Company;
2. The Company did not export alcoholic products directly, but sold them to the I&E Company for
export.
(2) Industries, products or regions that account for more than 10% of the Company's operating
revenue or profit
√ Applicable □ Not applicable
Unit: RMB Operating revenue Operating cost Gross profit
Year-on-year
increase/decrease |
in operatingrevenue
Year-on-year
in operating cost
Year-on-year
increase/decrease | increase/decrease |
in gross profitBy industryManufacturingindustry (liquorand spirits)
46,301,838,985.74
9,284,024,693.66
79.95%
22.65%
9.73%
2.36%
By productLiquors 46,301,838,985.74
9,284,024,693.66
79.95%
22.65%
9.73%
2.36%
Including:
High-end liquor
39,670,724,562.67
6,113,455,671.70
84.59%
31.41%
29.05%
0.28%
Middle-andlow-end liquor
6,631,114,423.07
3,170,569,021.96
52.19%
-12.32%
-14.84%
1.42%
By regionDomestic (liquorand spirits)
46,301,838,985.74
9,284,024,693.66
79.95%
22.65%
9.73%
2.36%
In the case that the statistical standards for primary business data of the Company are adjustedduring the reporting period, the primary business data of the Company in recent 1 year are subject tothose after the adjustment of the statistical standards at the end of the reporting period
□ Applicable √ Not applicable
(3) Whether the Company's revenue from physical sales is greater than income from labors
√ Yes □ No
Industryclassification
Item Unit Year 2019 Year 2018
Year-on-yearincrease/decrease
Liquors
Sales volume Ton 165,411
191,596
-13.67%
Production Ton 168,272
191,968
-12.34%
Inventory Ton 15,831
12,970
22.06%
Remarks: The above items are the sales volume, production and inventory of commodity liquor.Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable
(4) Performance of major sales contracts signed by the Company up to the reporting period
□ Applicable √ Not applicable
(5) Operating cost composition
Unit: RMBIndustryclassification
Item
Year 2019 Year 2018Year-on-year
Increase/decreaseAmount
Proportion inoperating cost
Amount
Proportion inoperating cost
industry
Raw materials 6,409,107,723.74
Manufacturing | ||
50.06%
5,376,901,123.42
51.27%
-1.21%
Salary 4,228,023,628.65
33.03%
3,144,553,451.80
29.99%
3.04%
Energy 957,955,244.56
7.48%
825,023,634.74
7.87%
-0.39%
Manufacturingexpenses
1,207,173,350.39
9.43%
1,140,304,724.31
10.87%
-1.44%
(6) Whether the consolidation scope changes in the reporting period
√ Yes □ No
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the 5thboard of directors of the Company, jointly funded and established "Wuliang NongXiang Series BaijiuYibin Co., Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95million, taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5%of the registered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. was included in theconsolidation scope of the Company since its establishment.
(7) Major changes or adjustments of business, products or services of the Company during the
reporting period
□ Applicable √ Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the CompanyTotal sales amount of top five customers (RMB) 6,656,074,707.73
Proportion of total annual sales of top five customers intotal annual sales 13.28%
Proportion of related parties in total annual sales amongthe top five customers
Top 5 customers of the Company
No. Customer name Sales amount (RMB) Proportion in total annual sales1 No.1 2,655,336,333.53
5.30%
2 No.2 1,454,245,831.36
2.90%
3 No.3 1,068,964,918.81
2.13%
4 No.4 768,878,910.41
1.53%
5 No.5 708,648,713.62
1.41%
Total -- 6,656,074,707.73
13.28%
Other information of major customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from top five suppliers (RMB) 2,024,585,007.42
Proportion in total annual purchase amount for top fivesuppliers
21.17%
Proportion of the purchase from related parties in
purchase amount among the top five customers
3.16%
total annual |
Top 5 suppliers of the Company
No. Supplier name Purchase amount (RMB)
Proportion in total annual purchase
amount1 No.1 501,920,162.34
5.25%
2 No.2 423,809,746.69
4.43%
3 No.3 412,501,721.08
4.31%
4 No.4 384,370,000.10
4.02%
5 No.5 301,983,377.21
3.16%
Total -- 2,024,585,007.42
21.17%
Other information of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMBYear 2019 Year 2018
Year-on-
increase/decrease
Note on major changes
Selling expenses
year | ||
4,985,579,336.77
3,778,433,675.01
31.95%
Caused by increase of product propaganda andmarketing expenses due to marketingorganization reform, marketing systemtransformation and upgrading, core productupgrading and updatingAdministrativeexpenses
2,655,347,148.09
2,340,498,705.44
13.45%
Financialexpenses
-1,430,745,865.74
-1,085,010,763.65
Not |
applicable
Caused by combined influence of the increase of |
average stock of cash and cash equivalents andthe rising of funds management benefitsResearch anddevelopment
expense
126,360,421.11
84,082,506.26
50.28%
Caused by increase of research anddevelopment investment by the Companyaccording to the market demands
4. Research and development investment
√ Applicable □ Not applicable
1. Purpose of the R&D project
In 2019, the Company continued its R&D work. It researched the application of solid, fermentedmicroorganisms to Chinese spirits, carried out risk assessment into liquor as a consumable, andresearched the application of intelligent brewing technologies. It also researched the technologies forliquor analysis, brewing technologies and developing new products. It did this to provide support at thesupply side.
2. Progress, planned objective, and impact on future development of the Company
There are 43 independent R&D projects, including "Researching the Substances for Ensuring theCharacteristic Flavor of Strong, Aromatic Chinese Spirits", "Researching the Special Brewing Grains forWuliangye", "Developing Functional Microbial Technologies to Improve the Quality of Strong, AromaticChinese Spirits", "Researching the Technologies to Adjust/Control the Acid Formation on Distilled Grainsin the Wuliangye Cellars", and "Developing an Intelligent Brewing Production Line and ResearchingSupporting Technologies". All of these projects have been carried out on schedule. The Alcoholic DrinksAssociation awarded the Company third prize for “Progress in Chinese Science”. It made two majortechnological breakthroughs, and was granted RMB 2.6 million by the government for special funding. Itobtained patents for five new inventions, and has published 21 science and technology articles.
The Company plans to collect the resources for solid fermentation that can be applied to strong,aromatic Chinese spirits. It has assessed the existing resources and how they are utilized, so that it canimprove the rate of producing quality products, ensure food safety, and consolidate the Company'sposition as a leader in strong aromatic Chinese spirits.Research and development investment of the Company:
Year 2019 Year 2018 Proportion of changeNumber of research anddevelopment personnel (person)
2,719
2,680
1.46%
Proportion of research anddevelopment personnel
10.32%
10.19%
0.13%
Research and developmentinvestment (RMB)
126,360,421.11
84,082,506.26
50.28%
Proportion of research anddevelopment investment in
operating revenue
0.25%
0.21%
0.04%
Capitalized amount of research and
development investment (RMB)
0.00
0.00
0.00%
Proportion of capitalized researchand development investment in
research and development
investment
0.00%
0.00%
0.00%
Reasons for significant changes in the proportion of total research and development investmentamount in operating revenue compared with the previous year
□ Applicable √ Not applicable
Reasons for the significant changes of research and development investment capitalization rate anddescription of its rationality
□ Applicable √ Not applicable
5. Cash flow
Unit: RMBItem Year 2019 Year 2018
Year-on-yearincrease/decreaseSub-total of cash inflows from
operating activities
64,604,503,080.77
47,286,315,224.60
36.62% (Note 1)
Sub-total of cash outflows from
operating activities
41,492,431,040.11
34,968,956,189.70
18.66%
Net cash flows from operating
activities
23,112,072,040.66
12,317,359,034.90
87.64% (Note 1)
Sub-total of cash inflows from
investing activities
92,050,811.98
49,824,966.23
84.75%
Sub-total of cash outflows frominvesting activities
1,708,455,125.66
381,381,461.74
347.96% (Note 2)
Net cash flows from investing
activities
-1,616,404,313.68
-331,556,495.51
Not applicable (Note 2)
Sub-total of cash inflows fromfinancing activities
1,813,717,926.36
-100.00% (Note 3)
Sub-total of cash outflows from
financing activities
7,251,646,962.56
5,431,641,453.13
33.51% (Note 4)
Net cash flows from financing
activities
-7,251,646,962.56
-3,617,923,526.77
Not applicable (Note 5)
Net increase in cash and cash
equivalents
14,244,084,425.84
8,368,245,492.17
70.22% (Note 6)
Description of main influencing factors of significant changes in relevant data on a year-on-yearbasis
√ Applicable □ Not applicable
Note 1: Due to the increase in income from liquor products in current year, increase of cash receivedfrom maturity of bank acceptance bill, early payment by dealers during the Spring Festival, and otherfactors;
Note 2: Due to the increase in cash payments to acquire and construct fixed assets in current year;
Note 3: Due to funds raised by non-public offering of shares in 2018;
Note 4: Due to the dividend distribution in 2019 was higher than that of the same period in 2018;
Note 5: Due to the combined influence of the dividend distribution in 2019 being higher than that ofthe same period in 2018 and the funds received from non-public offering of shares in 2018;
Note 6: Due to the increase in net cash flows from operating activities in current year.
Reasons for significant difference between the net cash flows from operating activities of theCompany and the net profit of the current year during the reporting period
□ Applicable √ Not applicable
III. Analysis of non-primary business
□ Applicable √ Not applicable
IV. Analysis of assets and liabilities
1. Significant changes in asset composition
Adjustment of relevant items in financial statements at the beginning of the implementation year asa result of initial implementation of new financial instrument standards, new income standards and newlease standards by the Company from 2019
√ Applicable □ Not applicable
Unit: RMB
End of Year 2019 Beginning of Year 2019
Increase/
proportion
Note on major
changesAmount
Proportion intotal assets
Amount
Proportion
in totalassets
equivalents
63,238,825,723.79
Cash and cash |
59.44%
48,960,048,897.95
56.87%
2.57%
Accountsreceivable
134,449,693.03
0.13%
127,331,336.97
0.15%
-0.02%
Inventory 13,679,619,615.41
12.86%
11,795,461,088.43
13.70%
-0.84%
Long-termequityinvestment
1,021,778,731.59
0.96%
919,477,978.54
1.07%
-0.11%
Fixed assets 6,108,745,912.72
5.74%
5,262,163,428.02
6.11%
-0.37%
progress
812,428,248.30
Construction in |
0.76%
351,993,452.86
0.41%
0.35%
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMBItem Beginning amount
Profit or
changes
in fairvalue incurrentperiod
Accumulated
loss from | changes in fair |
valuereckoned into
equities
Impairmentprovided in
currentperiod
Purchase
currentperiod
Amountof sales
incurrentperiod
Other changes Ending amountFinancialassets
1. Trading
financialassets(excludingderivativefinancialassets)
amount in
2. Derivative
financialassets
3. Other debt
investments
4. Other
equityinstrumentinvestment
5. Accounts
receivablefinancing
2,269,711,750.31
1,180,454,908.75
3,450,166,659.06
Sub-total offinancialassets
2,269,711,750.31
1,180,454,908.75
3,450,166,659.06
Investmentproperties
Productivebiologicalassets
Others
Sum of theabove items
2,269,711,750.31
1,180,454,908.75
3,450,166,659.06
Financialliabilities
Is there any significant change in measurement attributes of main assets of the Company in the
reporting period?
□ Yes √ No
3. Limitation on the assets and rights as of the end of the reporting period
√ Applicable □ Not applicable
Unit: RMBItem Ending book value Reasons for limitationCash and cash
99,996,480.91
equivalents | Deposit of bank acceptance bill of RMB 99,754,080.91 |
Accounts receivable
and otherdeposits of RMB 242,400.00.financing
144,514,604.00
financing | Pledge of bank acceptance bill |
Total 244,511,084.91
V. Analysis of investment
1. General situation
□ Applicable √ Not applicable
2. The significant equity investment obtained during the reporting period
□ Applicable √ Not applicable
3. The significant non-equity investment being carried out during the reporting
period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Note on investment situation
□ Applicable √ Not applicable
The Company had no securities investment during the reporting period.
(2) Note on derivative investment
□ Applicable √ Not applicable
The Company had no derivative investment during the reporting period.
5. Use of funds raised
√ Applicable □ Not applicable
(1) Overall Use of funds raised
√ Applicable □ Not applicable
Unit: RMB ’0,000
RaisingYear
RaisingMeans
Funds raised
Total
Funds raised |
used incurrentperiodTotal
Total fundsraised used
Total
Totalfunds
whichthepurposehasbeen
changed |
during
the
Totalfunds
reporting period | raised of |
which
thepurpose
hasbeenchanged
Proportion of the total |
fundsraised ofwhich thepurposehas beenchanged
Total funds
have notbeen used
Purpose andallocation offunds raisedwhich have not
been used
Fundsraisedwhich
hasbeen
raised which | idle for |
morethantwoyears
Year2018
Non-public
offering of
shares
185,327.74
12,872.58
15,605.81
169,721.93
In addition tofixed deposit orcall deposit, thefunds raisedwhich have notbeen used by
the |
Companyremained on thespecial accountfor funds raisedand would beused for theinvestmentprojects of thefunds raised.
Total -- 185,327.74
12,872.58
15,605.81
169,721.93
--
Description of overall use of funds raisedDuring the reporting period, the Company actually paid RMB 30.3497 million for the information construction project; RMB 35.9607million for the marketing center construction project; and RMB 62.4154 million for the service-oriented E-commerce platform project.Remark: The Company raised RMB 1.8532774 billion in total through this fund raising, and actuallyraised RMB 1.8127379 billion after deducting the issuing and undertaking expenses of RMB 40.5395million.
(2) Projects promised to be invested with funds raised
√ Applicable □ Not applicable
Unit: RMB ’0,000
Committedinvestmentprojects andallocation ofover-raisedfunds
Whether theproject hasbeenchanged(including
partialchange)
Totalamount ofcommittedinvestment
raised
Total
of the funds | investment |
amount
after
(1)
Investment
in thereporting
period
adjustment | Accumulated investment as |
of the end ofthe period (2)
Investment
progress as |
of the end
of theperiod (3)=
(2)/(1)
Date onwhich the
project
reaches the |
expected
usablecondition
Incomerealized
in thereporting
period
Whether
income
reach the expected | Is there any |
significantchange in
the projectCommitted investment projectsInformationconstruction
No 71,530
feasibility of
71,530
3,034.97
5,420.21
7.58%
Construction ofmarketingcenter
No 50,793
50,793
3,596.07
3,944.06
7.76%
Service-orientedE-commerceplatform
No 63,074
63,074
6,241.54
6,241.54
9.90%
Sub-total ofcommittedinvestmentprojects
-- 185,397
185,397
12,872.58
15,605.81
-- --
-- --Allocation of over-raised fundsTotal -- 185,397
185,397
12,872.58
15,605.81
-- --
-- --Note on andreason for notreaching thescheduledprogress orexpectedincome (basedon specificprojects)
The digital transformation of the Company is continuing, and specific projects need to be implemented stage by stage.Description ofany significantchange infeasibility of theproject
Not applicableAmount,purpose, andapplicationprogress ofover-raisedfunds
Not applicableChange ofimplementationplace ofinvestment
projects with the
funds raised
Not applicableAdjustment ofmeans ofimplementationof investment
projects with the |
projects with the |
funds raised
Not applicableEarlyinvestment andreplacement ofinvestment
funds raised
Not applicableNote on makingup workingcapitaltemporarily withidle fundsraised
Not applicableAmount andcause ofbalance offunds raisedafterimplementationof the project
Not applicablePurpose andallocation offunds raisedwhich have notbeen used
As of December 31, 2019, in addition to fixed deposit or call deposit, the funds raised which have not been used by the
Company remained on the special account for funds raised and would be used for the investment projects of the funds raised.Problems orotherinformationaboutapplication anddisclosure ofthe funds raised
projects with the
Refer to the special report on deposit of funds raised and actual use
(3) Changes of projects with the funds raised
□ Applicable √ Not applicable
The Company had no change of projects with the funds raised during the reporting period.VI. Sales of significant assets and equities
1. Sales of significant assets
□ Applicable √ Not applicable
The Company did not sell significant assets during the reporting period.
2. Sales of significant equities
□ Applicable √ Not applicable
VII. Analysis of main holding and JV companies
√ Applicable □ Not applicable
Main subsidiaries and JV companies that affect the net profits of the Company by more than 10%
Unit: RMB
Company name
Companytype
Primarybusiness
Registered capital Total assets Net assets
Ltd.
Subsidiary
Yibin Wuliangye Liquor Sales Co., |
Liquor sales,liquor importand exportbusiness andagency
200,000,000.00
43,847,842,961.59
20,836,104,933.89
Company name
Companytype
Primarybusiness
Operating revenue Operating profit Net profitYibin Wuliangye Liquor Sales Co.,
Ltd.
Subsidiary
Liquor sales,liquor importand exportbusiness andagency
46,559,665,282.40
20,342,581,806.17
15,289,221,216.27
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Company name
Means ofacquisition and
disposal of
the reporting
period
Impact on overall production, operation and performance
Yibin Co., Ltd.
Establishment
Integrate the original Yibin Wuliangye Series Liquor Brand Marketing Co.,Ltd., and Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. tooptimize organization structure of the series liquor and focus on coreproducts of the series liquor, which will benefit overall long-termdevelopment of the CompanyVIII. Structured entities controlled by the Company
□ Applicable √ Not applicable
IX. Prospect of future development of the Company(I) Industrial pattern and trendIn 2020, the downward pressure of domestic economy further increases due to the impact ofCOVID-19, but the fundamentals and basic trend of steady long-term economic growth remainunchanged. The production volume, revenue and total profit of the liquor industry maintain the growthtrend, but the production capacity is still in excessive and the competition pattern of extruded growth willexist in long term. The liquor industry is still in the long cycle of a new round of growth characterized bystructural prosperity, in which high-end liquor will continue to lead the structural growth of the industryand the industry will be further concentrated on superior brands, superior enterprises and superiorproducing areas.(II) Development strategy of the CompanyStrategic vision of the Company: The Company is dedicated to keeping it evergreen and strives tobuild a healthy, creative, and leading first-class enterprise in the world and realize high-quality,sustainable, and rapid development.
(III) Completion of the business plan 2019
1. Beginning plan: Operating revenue of RMB 50 billion in 2019, keeping the growth of about 25%.
2. Actual completion: In 2019, the Company's operating revenue reached RMB 50.118 billion, with
year-on-year growth of 25.20%.(IV) 2020 Business PlanThe year 2020 will be crucial. The Company will continue to reform in line with the final year of the"13th Five-Year Plan". It will also lay the foundation for stepping into a post-hundred billion era,becoming one of the Global 500 companies, and building a first-class, international enterprise. Under XiJinping’s guiding principle of “socialism with Chinese characteristics”, the Company will enter a new eraand fully implement a series of important instructions that were outlined for Sichuan at the 19th NationalCongress of the Communist Party of China. General Secretary Xi insisted on the general principle of
seeking progress while keeping performance stable. He called for a new concept of development, andthat organizations continue to "strengthen weak points, give play to strong points, and upgrade with newmomentum". The Company aims to improve in quality and control, to promote new development and todigitally transform while continuously increasing its revenue.The Company's business objective for 2020: double-digit growth for the total operating revenue.To ensure that the Company successfully achieves its business objectives, it is attaching greatimportance to the following tasks: 1) Strengthening the management of production, building a qualitymanagement system for the lifecycle of the product, and ensuring that production improves in qualityand efficiency; 2) Strengthening the brand and inflating the brand value of Wuliangye by continuing toimprove the production system with the four strategic products (Wuliangye "1+3" products and the seriesliquor); 3) Strengthening the marketing system by carrying out strategic planning, creating channels,structurally optimizing the mechanisms of teams, digitalization, and building a responsive marketingsystem; 4) Constructing and promoting key projects that involve liquor packaging, intelligent storage,delivery integration, special grain processes and automated grinding machinery, while carrying outtechnological innovation into how to store blended liquor and increase the Company’s capacity andscale; 5) Vigorously promoting reforms in institutions and compensation systems, motivating theCompany to develop with vitality.
(V) Potential risks
1. The risk of uncertain macroeconomic growth. With the impact of the COVID-19, there has been
an intense, downward trend in the international and domestic economy; the Company will pay closeattention to the domestic macroeconomic situation, strengthen its monitoring and research, and preparea risk response plan.
2. The risk of more intense industrial competition. In recent years, consumption habits have
transformed, and the Company needs to reform accordingly, by strengthening its weaknesses,highlighting its strong points, and finding new driving forces, to improve its core competitiveness.
3. The risk of changes to consumer demands. The Company needs to conduct more market
survey and adjust its business strategy, adapting to changes in consumer demands and meeting themore diversified demands of consumers.
X. Reception, research, communication, interview and other activities
1. Registration form of reception, research, communication, interview and other activities
during the reporting period
√ Applicable □ Not applicable
Date of reception Way of reception
Type ofinterviewees
Basic information index of the
surveyJanuary 11, 2019 (Hong Kong) Communication Organization
CNINFO(http://www.cninfo.com.cn)
January 23, 2019 Field survey OrganizationFebruary 18, 2019 Field survey Organization
May 10, 2019(Annual General Meeting 2018)
Field survey
Organization,
individual
May 15, 2019 Field survey Organization
May 20, 2019
Telephonecommunication
OrganizationMay 23, 2019 Field survey OrganizationMay 23, 2019 (Beijing) Communication OrganizationMay 23-24, 2019 (Chengdu) Communication Organization
May 31, 2019 Field survey OrganizationJune 20, 2019 (Qingdao) Communication OrganizationJune 21, 2019 (Shanghai) Communication OrganizationJune 26, 2019 (Shanghai) Communication OrganizationJuly 03-05, 2019 (Hong Kong) Communication Organization
July 05, 2019 Field survey OrganizationJuly 12, 2019 (Shanghai) Communication Organization
July 16, 2019 Field survey Organization
July 22, 2019 Field survey Organization
July 30, 2019 Field survey OrganizationSeptember 06, 2019 Field survey OrganizationSeptember 10-12, 2019 (Hong Kong) Communication Organization
September 11, 2019 Field survey OrganizationSeptember 12, 2019 Field survey OrganizationSeptember 15-23, 2019(England, Netherlands, France)
Communication OrganizationSeptember 16, 2019 Field survey OrganizationSeptember 18, 2019 Field survey OrganizationSeptember 23, 2019 Field survey OrganizationSeptember 26, 2019 Field survey Organization
September 27, 2019(The First Extraordinary General Meeting
2019)
Field survey
Organization,
individual
CNINFO(http://www.cninfo.com.cn)
November 04, 2019 Field survey OrganizationNovember 05, 2019 (Shenzhen) Communication Organization
November 06, 2019 Field survey OrganizationNovember 07, 2019 (Beijing) Communication OrganizationNovember 11, 2019 (Chengdu) Communication Organization
November 13, 2019 Field survey Organization
November 14, 2019 Field survey Organization
November 19, 2019 Field survey OrganizationNovember 19, 2019 (Beijing) Communication OrganizationNovember 19-20, 2019 (Shenzhen) Communication Organization
November 21, 2019 Field survey Organization
November 28, 2019 Field survey OrganizationNovember 28, 2019 (Shenzhen) Communication Organization
November 29, 2019 Field survey Organization
December 17, 2019 Field survey Organization
December 24, 2019 Field survey Organization
Reception times 52 times
Number of organizations received About 1,000 (1,600+ persons in total)
Number of individuals received 25 persons
Number of other interviewees received 0
Whether undisclosed importantinformation is disclosed, revealed or
divulged
No
Section V Significant Matters
I. Common stock profit distribution and transferring capital reserve to capital
stock of the CompanyFormulation, implementation and adjustment of common stock profit distribution policy, especiallycash dividend policy, during the reporting period
√ Applicable □ Not applicable
According to the Profit Distribution Plan 2018 reviewed and adopted at the Annual General Meeting2018 of the Company, based on the total capital stock of 3,881,608,005, the Company distributed thedividend of RMB 17 in cash (tax inclusive) to all shareholders for every 10 shares. The distribution planwas expressed by the independent directors of the Company, submitted to the general meeting forapproval after reviewed by the board of directors of the Company, and had been implemented on June 6,2019.
Special notes on cash dividend policyWhether it meets the requirements of the Articles of Association (AoA) or theresolutions of general meeting?
YesIs the dividend distribution standard and proportion specific and clear? YesAre relevant decision-making procedures and mechanisms complete? YesHave the independent directors performed their duties and fulfilled their dueroles?
YesDo the minority shareholders have the chance to fully express their opinions anddemands, and are their legal rights and interests fully protected?
YesAre the conditions and procedures normative and transparent in case ofadjustments or changes of the cash dividend policy?
YesCommon stock dividend distribution scheme (plan) and share capital increase from capital surplusscheme (plan) in the past 3 years (including the reporting period):
The Company's cash dividend distribution scheme in 2019: The Company distributed cashdividends of RMB 22 (tax inclusive) for every 10 shares and totaling RMB 8.54 billion in cash.The Company's cash dividend distribution scheme in 2018: The Company distributed cashdividends of RMB 17 (tax inclusive) for every 10 shares and totaling RMB 6.599 billion in cash.The Company's cash dividend distribution scheme in 2017: The Company distributed cashdividends of RMB 13 (tax inclusive) for every 10 shares and totaling RMB 5.046 billion in cash.Common stock cash dividends of the Company in the past 3 years (including the reporting period)
Unit: RMB
Year ofdividends
inclusive)
Net profitattributable to
commonstockholders of thelisted company in
the annualconsolidatedstatement in theyear of dividends
Ratio of cashdividends tonet profit
Cash dividends (tax | attributable to |
commonstockholdersof the listedcompany in
theconsolidated
statement
Cashdividends inother forms
(such as
sharerepurchase)
Ratio of cashdividends inother forms to
net profitattributable to
commonstockholdersof the listedcompany in
theconsolidated
statement
(including those inother forms)
Ratio of total
cashdividends(including
Total cash dividends | those in other |
forms) to net
profit
commonstockholdersof the listedcompany in
theconsolidated
statementYear 2019
attributable to | ||
8,539,537,611.00
17,402,164,190.16 49.07%
0.00
0.00%
8,539,537,611.00
49.07%
Year 2018
6,598,733,608.50
13,384,246,683.60
49.30%
0.00
0.00%
6,598,733,608.50
49.30%
Year 2017
5,046,090,406.50
9,673,721,498.15
52.16%
0.00
0.00%
5,046,090,406.50
52.16%
The Company achieved profit within the reporting period and the parent company's attributableprofit to common stockholders was positive, but no common stock cash dividend distribution plan wasproposed
□ Applicable √ Not applicable
II. Profit distribution and transferring capital reserve to capital stock during thereporting period
√ Applicable □ Not applicable
Bonus shares per 10 shares (shares) 0
Dividend per 10 shares (RMB) (tax inclusive) 22
Increase shares per 10 shares (shares) 0
Equity base of distribution plan (shares) 3,881,608,005
Cash dividend (RMB) (tax inclusive) 8,539,537,611
Cash dividend in other forms (such as share
repurchase) (RMB)
0.00
Total cash dividends (including those in other forms)
(RMB)
8,539,537,611
Distributable profit (RMB) 34,542,304,965.71
Ratio of total cash dividends (including those in other
forms) to total distributable profit
100%
Cash dividend distribution in this periodShould the Company be in a growing stage and have major capital expe
nditure arrangements, the cash dividend should
account for a minimum of 40% of the profit distribution when the profit is distributed.
Notes on details of profit distribution plan or plan for transferring capital reserve into capital stockThe Company's cash dividend distribution scheme in 2019: Based on the total capital stock on the equity registration
nditure arrangements, the cash dividend shoulddate when the Company implemented the profit distribution scheme, the Company distributed cash dividends of RMB 22
(tax inclusive) for every 10 shares and distributed totally RMB 8,539,537,611 in cash. No bonus share was distributedand no capital reserve was transferred to capital stock in current year.
III. Performance in fulfilling commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the
Company’s actual controller(s), shareholders, related parties, acquirer(s) and other commitmentparties
√ Applicable □ Not applicable
The Company disclosed the Notice on Commitments Concerning Non-Public Offering of Shares onApril 19, 2018, which disclosed the commitments of the Company, directors, controlling shareholders,actual controller(s) and directors and officers participating the ESOP on five aspects. During thereporting period, the above-mentioned commitment makers had all strictly fulfilled the commitments.
2. In case the Company’s asset or project has profit forecast, and the reporting period is still in
forecasting period, the Company shall make a statement about the asset or project reaching theoriginal expectation and the reasons thereof.
□ Applicable √ Not applicable
IV. Non-operating occupation of funds of the listed companies by controllingshareholders and their related parties
□ Applicable √ Not applicable
The Company had no non-operating occupation of funds of the listed companies by controllingshareholders and their related parties during the reporting period.
V. Note on the board of directors, the board of supervisors and independentdirectors (if any) on the "non-standard audit report" of the accounting firm during thereporting period
□ Applicable √ Not applicable
VI. Note on changes in accounting policy, accounting estimates and accountingmethods compared with the financial report of the previous fiscal year
√ Applicable □ Not applicable
1. Changes in significant accounting policy
Content and reason of changes in accounting policy Remarks
Revising and Printing Formats of Financial Statements for General Enterprises in 2019
(CK (2019) No.6) in April, 2019 to revise the format of financial statements of enterprise. | Refer to the following explanations for details of the it |
ems in the Financial Statements 2018
which are affected by retroactive adjustment | |
Presentation of financial statement: The Notice on Revising and Printing Formats of |
Consolidated Financial Statements (2019) (CK (2019) No.16) revised the format of
financial statements of enterprise. |
Changes in accounting policy caused by execution of new financial instrumentstandards: The Ministry of Finance issued the Accounting Standards for BusinessEnterprises No.22 – Recognition and Measurement of Financial Instruments (2017Revision) (CK (2017) No.7), the Accounting Standards for Business Enterprises No.23
Transfer of Financial Assets (2017 Revision) (CK (2017) No.8), the AccountingStandards for Business EnterprisesNo.24- Hedging Accounting (2017 Revision) (CK(2017) No.9) on March 31, 2017, and the Accounting Standards for BusinessEnterprises No.37- Presentation of Financial Instruments (2017 Revision) (CK (2017)No.14) (the above standards collectively referred to as the "New Financial InstrumentStandards") on May 2, 2017, requiring enterprises which were simultaneously listedabroad and at home and which were listed abroad and prepared their financial reportaccording to the International Financial Reporting Standards (IFRS) or the AccountingStandards
for Business Enterprises (ASBE) to implement such standards since January |
1, 2018; and other domestic listed companies to implement such standards sinceJanuary 1, 2019.
standards,
information of the comparable period is not adjusted, and the beginning retained earnings or other comprehensive income of the reporting period will be adjusted retroactively for the difference between the new standards and the original standard |
s on the date of initial
mentation of new financial instrument
standards, new revenue standards and new lease standards from 2019" for details about impact on the Financial Statements 2018 |
The impact of CK (2019) No. 6 on the Financial Statements 2018 are presented below:
Item
Financial Statements 2018 (Consolidated) Financial Statements 2018 (Parent Company)
Before change After change Before change After change
Notes receivable andaccounts receivable
16,261,973,287.83
Notes receivable and accounts receivable |
Notes receivable
16,134,641,950.86
Accounts receivable
127,331,336.97
Notes payable and accounts payable |
3,566,293,179.83
175,000.00
Notes payable
413,918,369.11
Accounts payable
3,152,374,810.72
175,000.00 |
Asset impairment loss 10,879,427.89
143,797.84
Asset impairment loss (loss indicated with “-”) |
-10,879,427.89
-
2. Changes in significant accounting estimates
No changes in significant accounting estimates during the reporting period.
3. Adjustment of relevant items in financial statements at the beginning of the initial
implementation year as a result of initial implementation of new financial instrument standards, newrevenue standards and new lease standardsConsolidated financial statements:
Item
Balance sheetDecember 31, 2018 Reclassification Remeasurement January 1, 2019Notes receivable 16,134,641,950.86
143,797.84
-2,269,711,750.31
13,864,930,200.55 | ||||
Accounts receivable financing |
2,269,711,750.31
2,269,711,750.31 | ||||
Available-for-sale financial assets |
1,200,000.00
-1,200,000.00
Other non-current financial assets |
1,200,000.00
1,200,000.00 |
Financial statements of parent company:
Item
Balance sheetDecember 31, 2018 Reclassification Remeasurement January 1, 2019
1,200,000.00
Available-for-sale financial assets |
-1,200,000.00
Other non-current financial assets |
1,200,000.00
1,200,000.00 |
4. Note on comparison data before the retrospective adjustments due to initial implementation of
new standards for financial instruments or new lease standardsComparison data which does not need retrospective adjustments due to initial implementation ofnew standards for financial instruments or new lease standards during the reporting period.The Company had no changes in accounting policy, accounting estimates and accounting methodsduring the reporting period.VII. Note on rectification of major accounting error in the reporting period whichneeds to be tracked and restated
□ Applicable √ Not applicable
The Company had no rectification of major accounting error in the reporting period which needs tobe tracked and restated during the reporting period.VIII. Note on changes in the scope of consolidated financial statements comparedwith the financial report of the previous year
√ Applicable □ Not applicable
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the 5th boardof directors of the Company, jointly funded and established Wuliang NongXiang Series Baijiu Yibin Co.,Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95 million,taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5% of theregistered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. was included in the consolidationscope of the Company since its establishment.
IX. Appointment and dismissal of accounting firms
Accounting firm currently appointed
Name of Chinese accounting firm Sichuan Huaxin (Group) CPA (LLP)Remuneration of Chinese accounting firm RMB 1.32million (excluding internal control and audit fee)Term of auditing services of Chinese accounting firm 19Name of the CPAs of Chinese accounting firm Li Min, Liu JunTerm of auditing services of the CPAs of Chineseaccounting firm
The 4th year of Mr. Li Min, the 2nd year of Mr. Liu Jun
Has the accounting firm been changed in current period?
□ Yes √ No
Appointment of internal control audit accounting firm, financial advisor or sponsor
√ Applicable □ Not applicable
The Company continued to appoint "Sichuan Huaxin (Group) CPA (LLP)" as the internal control andaudit organization of the Company in 2019 at the cost of RMB 600,000.X. Suspension or termination of listing confronted upon disclosure of the annualreport
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
The Company had no bankruptcy reorganization during the reporting period.
XII. Major litigation and arbitration matters
□ Applicable √ Not applicable
The Company had no major litigation and arbitration matters during the reporting period.
Other litigation and arbitration matters
√ Applicable □ Not applicable
Basic informationabout litigation(arbitration)
Amount
case (Unit:
RMB ’0,000)
Whetherformingestimatedliabilities
Progress oflitigation(arbitration)
involved in the | Results and influence of trial of |
litigation (arbitration)
Enforcementofadjudicationof litigation
Disclosure
date
Disclosureindex
The Company suedBeijing TanshiRuifeng Trade Co.,
(arbitration) | ||
Ltd. and Gansu Binhe |
Food Industry(Group) Co., Ltd. forinfringement of theexclusive right to usethe trademark"Wuliangye"
7,000 No
The casehad been
settled
In consideration that BinheCompany failed to fulfill thepayment obligation within thetime specified in the judgment,the Company submitted anapplication to Beijing No.1Intermedi
enforcement on October 11,
2019. Beijing No.1 Intermediate |
People’s Court published main
China Intellectual PropertyNews on December 27, 2019,and remitted the executedmoney of RMB 5,482,250 tothe a
ccount of the Company on |
January 4, 2020.
Theenforcement
had beencompleted
The Company suedBeijing TanshiRuifeng Trade Co.,
Food Industry(Group) Co., Ltd. forinfringement of theexclusive right to usethe trademark"Wuliang Chun(Spring)"
6,000 No
The casehad been
settled
In consideration that BinheCompany failed to fulfill thepayment obligation within thetime specified in the judgment,the Company submitted anapplication to Beijing No.1
Ltd. and Gansu Binhe | Intermediate People’s Court for |
enforcement on October 11,
People’s Court published main
contents of the judgment on the |
China Intellectual PropertyNews on December 27, 2019,and remitted the executedmoney of RMB 4,465,800 tothe account of the Company on
Theenforcementhad beencompleted
XIII. Punishment and rectification
□ Applicable √ Not applicable
The Company had no punishment or rectification during the reporting period.
XIV. Credit conditions of the Company, its controlling shareholders and actualcontrollers
√ Applicable □ Not applicable
The Company, its controlling shareholders and actual controllers had good credit conditions duringthe reporting period.
XV. Implementation of the Company's equity incentive plan, ESOP or otheremployee incentive measures
√ Applicable □ Not applicable
The 11th meeting of the 5th board of directors of the Company held on October 30, 2015 and theannual general meeting of 2015 held on June 22, 2016 reviewed and approved the Proposal for the FirstPhase of Employee Stock Ownership Plan (ESOP) of Wuliangye Yibin Co., Ltd. (Draft) (Subscription inNon-Public Offering of Shares) and its Summary, approving the Company to implement the ESOP.
The shares issued by non-public offering for the Company's ESOP were issued and listed on April19, 2018. In August, the Company held the 1st meeting of shareholders participating the ESOP and setup the management committee of the ESOP (Phase I). Participants of the ESOP included directors,supervisors, senior management, and other employees of the Company, 2,428 persons in total, andsubscribed 23,696,280 shares, taking up 0.61% of total capital stock of the Company.
At the end of the reporting period, current directors, supervisors, senior management, and membersof CPC of the Company (Li Shuguang, Chen Lin, Zou Tao, Yang Yunxia, Wu Guoping, Zhu Zhongyu,Tang Bochao, Tang Shengyun, Luo Wei, Zhao Dong, Wu Jianjun and Peng Zhifu) participating the ESOPindirectly held 1,898,683 shares through the Guotai Junan Fund Management Plan, taking up about 2.22%of the shares issued through non-public offering. At present, the management committee of the ESOP iscomposed of 30 persons, including 1 director and 1 deputy director. There was no change during thereporting period. Scheme for handling the demission and resignation of holders of the ESOP is underresearch.XVI. Major related transactions
1. Related transactions related to daily operation
√ Applicable □ Not applicable
The Company signed the Financial Service Agreement and the Supplemental Agreement to theFinancial Service Agreement with the Finance Company on April 12, 2018 and March 20, 2019,respectively. The main contents were deposits and loans service. Daily balance of deposits was no morethan RMB 32.9 billion in 2019 and daily balance of loans no more than RMB 2.5 billion in 2019. Refer to"Section XII, X. Related parties and related transactions, 5. Related transactions (5) Other relatedtransactions" for details about related transactions between the Company and the Finance Company.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable √ Not applicable
The Company had no related transactions arising from the acquisition or sale of assets or equity ofthe Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable √ Not applicable
The Company had no related transactions of joint foreign investment during the reporting period.
4. Current associated rights of credit and liabilities
□ Applicable √ Not applicable
The Company had no current associated rights of credit and liabilities during the reporting period.
5. Other major related transactions
□ Applicable √ Not applicable
The Company had no other major related transactions during the reporting period.
XVII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ Applicable √ Not applicable
The Company had no lease during the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
The Company had no guarantee during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
□ Applicable √ Not applicable
The Company had no entrusted financing during the reporting period.
(2) Entrusted loan
□ Applicable √ Not applicable
The Company had no entrusted loan during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
The Company had no other major contracts during the reporting period.
XVIII. Social responsibility
1. Fulfillment of social responsibility
Refer to the Social Responsibility Report 2019 disclosed by the Company on April 28, 2020.
2. Show social responsibility by setting poverty alleviation targets
(1) Targeted poverty alleviation
The Company has always recognized that there is a huge, political responsibility to tackle povertyalleviation and it has set targets to help alleviate those in poverty-stricken areas. In 2019, the Companyfocused on the principle of "giving people a leg up to help them get going and develop". The Companydemonstrated its advantages in capital, production, and marketing, and assisted with poverty alleviationin a number of regions, including Litang County within the Ganzi Prefecture, Xingwen County andPingshan County in Yibin. It helped alleviate people who had impoverished industries, insufficienteducation, limited consumption pools, and those who suffered from basic poverty.
(2) Annual summary on poverty alleviation targets
The Company has so far contributed RMB 273 million towards the poverty alleviation fund andpurchased over RMB 45 million’s worth of poverty alleviation products. The Company won the SocialResponsibility award at the 12th People’s Enterprise Poverty Alleviation Awards, and the People’s Dailyaward for Targeting Poverty Alleviation, serving as a recommended model for building capability. It wasvoted one of the Top 50 "Social Organizations for Alleviating Poverty", and was one of the 2018"Advanced Units for Alleviating Poverty in Sichuan". It was also a leading group in the State Council’s"Sichuan Advanced Poverty Alleviation Collective of 2019", and the "Most Charitable Enterprise" inSichuan Province.
Capitalizing operations, and building the "Wuliangye + Village Collective Asset ManagementCompany+Farmers" model
The Company donated RMB 2.1 million to Litang County in the Ganzi Prefecture, and used overRMB 12 million to establish the first village collective asset management company in Ganzi. The equitywas apportioned to farmers at the Wuliangye Litang Polar Fruits and Vegetables (Mushroom) Base, andthey became the production operators. This motivated farmers to take part in industrial development.The Company provided aid with a "Purchase Rather Than Donate" scheme. It helped drive the collectiveeconomy of the village through extensive marketing, and made more than RMB 7.1 million in revenueand dividends of over RMB 1.5 million. The Company donated RMB 1.25 million to Xingwen County inYibin for the Wuliangye Qingshanyan Bamboo Forest (Nursery Garden) Demonstration Base, and itapportioned the equity to the village-collective asset management company. They drove the village’scollective economy and made nearly RMB 600,000 in revenue and dividends of nearly RMB 100,000through equity quantification. The Company implemented an innovative model centered on thevillage-collective asset management company, and was able make the transition from traditional,
agricultural production to having capitalized operations. It demonstrated the increased importance ofplaying a leading industrial role.Industrialized operations, building the "Wuliangye+Industrial Base+Farmers" modelThe Company had always organically integrated base construction with rural revitalization. It hasencouraged farmers to carry out moderate-scale operations and has promoted land transfers and topquality construction on farmland. It has used more than one million mu to construct a core demonstrationarea, and a special grain base for brewing. In Xingwen County, Yibin, the Company built the 1,100-muWuliangye Qingshanyan Bamboo Forest (Nursery Garden) Demonstration Base. This mainly producedbamboo pulp and this was subsequently purchased by the Yibin Paper Industry Co, Ltd. via theCompany. This helped solve the problem of farmers’ long-term revenue. The Company has alsodeveloped its auxiliary industries such as bamboo and bonsai planting/breeding in the bamboo forest, inorder to improve its land resources and solve both long and short-term problems with farmers’ revenues.The Company built the 42-mu Wuliangye Litang Polar Fruits and Vegetable (Mushroom) Base in LitangCounty, Ganzi Prefecture. It is an enclave park with a plateau and it has helped stimulate thedevelopment of seven poor villages and nearly 400 peasant households. The mushroom products at thisbase were the first to obtain a green food mark in Litang County.Market-oriented operations, building the "Wuliangye+Large Group and LargeEnterprise+Farmers" model
The Company made full use of its market mechanism to find the interest bonds for alleviatingconsumption poverty. It increased the revenue of farmers by hosting trade shows, and at regular andirregular intervals purchased products by employees to help alleviate them of poverty. It created aspecial poverty alleviation zone for products on the digital "Wuliangye Family" labor union platform.While boosting the confidence of farmers, the Company gave full play to the advantages of its"multi-dimensional diversified industry platform". The Company introduced brand and marketingmanagement packages to leading groups and large enterprises, so that there could be long-termcooperation. It injected new impetus into poverty alleviation by strengthening its brand connotations andmodern marketing concepts. The Company strengthened its cooperation with large on-line and off-linegroups/enterprises, such as www.freshhema.com, JD.com, and ZHNK. It actively took part in povertyalleviation activities and hosted multiple large exhibitions for farmers to exhibit their grains nationally tosocial organizations. These included both national agricultural exhibitions and sideline product and foodsafety exhibitions, so they could build a better marketing channel, and a more stable and long-lasting
marketing network. The Company mobilized social forces to be active in poverty alleviation activities,and they helped quickly turn the products used for poverty alleviation into marketable products.Enterprise-dominant operations, building the "Wuliangye+Echelon Cultivation ofTalent+Farmers" modelThe Company donated millions of educational and multi-media classroom materials and activelysupported work in the Ganzi Prefecture to "Prevent Dropouts and Ensure Compulsory Education". It builtthe Wuliangye Hope Primary School and donated money towards the construction of the "Five-Love"teaching building. It established the Wuliangye Education Fund which contains more than RMB 20million. This has been used to reward teachers and assist impoverished students. It has also been usedto introduce technical experts into the industry, who have helped farmers receive technical training,improve their technical knowledge, and become newly professional industrials that industrial bases canrely on. Six poverty alleviation cadres were selected and sent by the Company to the front-line ofimpoverished areas, and they led local farmers to take part in production management, fund-raising,marketing and other activities. In doing so, they helped them to comprehensively develop, andthemselves promoted the extension of basic public cultural services in the countryside. Their excellentdeeds were widely publicized and they prospered as a result of this centralized publicity. This helpedbuild momentum for more rural governance systems that could tackle poverty and achieve prosperity.Party Cohesion, building the "Wuliangye Party +'Two Village Committees' +PartyMembers+Farmers" model
The Company helped construct a party branch at the Polar Fruits and Vegetables (Mushroom) Basein Litang County, Ganzi Prefecture. It provided construction materials, helped boost work performance,and innovated how to implement shared resources. In Xingwen County, Yibin, the Company built a homefor the masses and a public service center in the Qingshanyan Village. It introduced the concept of aparty-backed Wuliangye cultural center and greatly strengthened the cohesion of the party atvillage-level. In Pingshan County, Yibin, the Company cooperated with the village enterprise to build the"Wuliang New Village·Virtuous Baixiang" demonstration site. This breathed new life into the rurallandscape and helped starting a new era of modern, rural party construction.
(3) Targeted poverty alleviation effect
Index
Unit ofmeasurement
Quantity/performanceI. General situation -- --Including: 1. Funds RMB '0,000 13,358
2. Amount converted from materials RMB '0,000
RMB 200,000 (donating RMB 120,000 of educational and culturalmaterials to Xiamula Township; donating 300 sets of charitablepackages valued RMB 30,000 to counterpart assisted regions; anddonating RMB 50,000 of educational materials to Xinjie Village PrimarySchool of Dayuan Ethnic Primary School of Xianfeng Township)
3. Number of poor people who move out of
poverty under the help of the Company
Person
In 2019, the Company helped 21 persons of 5 households of BaixiangVillage of Pingshan County to get rid of povertyII. Input by items -- --
1. Industrial development poverty alleviation -- --Including: 1.1 Type of industrial developmentpoverty alleviation project
--
1.2 Number of industrial development
poverty alleviation project
Piece
5 (construction of the characteristic agricultural products (Tibetanmushroom and Tibetan agarics) base of Shangmayan Village, XiamulaTownship, Litang County; construction of the bamboo industry ofQingshanyan Village, Xingwen County; construction of the specialbrewing grain base; construction of the poverty alleviation workshop ofXingwen County; construction of the "rural revitalization industrial road"and promoting the construction of transportation infrastructure and therural revitalization strategy)
1.3 Amount for industrial development
poverty alleviation project
RMB '0,000 10,100
1.4 Number of poor people who get rid of
poverty under the help of the Company
Person
2. Transfer employment poverty alleviation -- --Including: 2.1 Amount for vocational skilltraining
RMB '0,000
2.2 Number of attendees of vocational skill
training
Person-time
2.3 Number of employment
the help of the Company
Person 48
3. Poverty alleviation relocation -- --Including: 3.1 Number of employment ofrelocated household under the help of theCompany
Person
4. Educational poverty alleviation -- --Including: 4.1 Amount for funding poorstudents
RMB '0,000 258
4.2 Number of poor students receiving fund Person
43 persons (providing educational assistance to 20 outstanding poorundergraduates with RMB 5,000/person, granting student subsidies ofRMB 100,000; donating RMB 2.48 million for supporting the acrobaticseducation poverty alleviation project of Yibin, and subsidizing 23students)
4.3 Amount for improving educational
resources of impoverished areas
RMB '0,000
RMB 200,000 (donating RMB 120,000 of educational and culturalmaterials to Xiamula Township; donating 300 sets of charitablepackages valued RMB 30,000 to counterpart assisted regions; anddonating RMB 50,000 of educational materials to Xinjie Village PrimarySchool of Dayuan Ethnic Primary School of Xianfeng Township)
5. Health poverty alleviation -- --Including: 5.1 Amount for medical and healthresources of impoverished areas
RMB '0,000
of the poor under
6. Ecological protection poverty alleviation -- --Including: 6.1 Type of project --
6.2 Investment amount RMB '0,000
7. Subsistence allowance -- --Including: 7.1 Amount for the "Three LeftBehind" personnel
RMB '0,000
(4) Subsequent targeted poverty alleviation plan
The Company will accomplish its work by optimizing industrial development, offering educationalassistance, assisting with consumption, and guaranteeing developments in line with theinstructions/requirements of the Central Government and the Sichuan Provincial Party Committee andGovernment. It will base its poverty alleviation practices in Yibin’s Xingwen County and Pingshan County,and Litang County in the Ganzi Prefecture.Optimize industrial development. 1) The Company will earnestly promote the Qingshanyanbamboo industrial project in Xingwen County. The Company has finished funding the industrial base forQingshanyan Bamboo Base. It will continue to promote new bamboo products from the nursery garden(bamboo fungus, tricholoma matsutake, etc.), and will expand and refine its bamboo product operations.
2) The Company will continue to promote standardized operations and developments at the Litang
"Polar Fruits and Vegetables" (Mushroom) Base. The Company will make full use of its scale and talent
7.2 Number of the "Three Left Behind"
personnel receiving help
Person
7.3 Amount for poor disabled RMB '0,000
7.4 Number of poor disabled receiving help Person
8. Social poverty alleviation -- --Including: 8.1 Amount for poverty alleviationcooperation between East and West China
RMB '0,000
8.2 Amount for fixed-point poverty alleviation RMB '0,000
8.3 Amount for poverty alleviation charitable
foundation
RMB '0,000
9. Consumption for poverty alleviationIncluding 9.1 "Purchase Rather ThanDonation" characteristic agricultural products
RMB '0,000 2,666
10. Other projects -- --Including: 10.1 Number of projects Piece
3 (donating RMB 1 million to Yajiang County and Xinlong County,respectively, RMB 2
million in total; donating RMB 700,000 to fill the gapof funds for strengthening the weak points according to the standards of
Jieji Village, Pingbian Yi Nationality Township, Pingshan County;
donating RMB 640,000 to support the construction of demonstration site |
of village enterprise co-construction of Baixiang Village)
10.2 Investment amount RMB '0,000 334
10.3. Number of poor people who move out
of poverty under the help of the Company
Person
In 2019, the Company helped 21 persons of 5 households of BaixiangVillage of Pingshan County to get rid of povertyIII. Awards received (content, level) -- --
"Social Organization Poverty Alleviation 50 Best Cases", "SichuanAdvanced Fixed-Point Poverty Alleviation Unit Directly Under ProvincialJurisdiction 2018", and "Sichuan Advanced Poverty AlleviationCollective 2019" of theState Council Leading Group Office of PovertyAlleviation and Development, the "Most Charitable Donating Ent
of Sichuan Province. Zhangwen, supervisor of Wuliangye Mass WorkDepartment and member of the work team stationed at ShangmayanVillage, Xiamula Township, Litang County, Ganzi Prefecture washonored as "Advanced Individual of the Poverty Alleviation 'Five-One'Assistance of Sichuan 2018"
to vigorously promote new technologies. It will standardize the production of mushrooms, and will makefull use of the "Zangziyuan" (“藏孜源” in Chinese) registered trademark. It will extend its industrial chainand thoroughly drive forward the development of Litang County’s edible mushroom industry. It will playan active role in poverty alleviation by ensuring industrial development and increasing local revenue. 3)The Company will continue to provide industrial assistance in the Baixiang Village in Pingshan County.The Company will utilize its local resources and strengthen the impetus for better communication andmore innovation in Baixiang Village. 4) The Company will promote the construction, consolidation andsubsequent upgrades of a special brewing grain base. The Company will upgrade its million-mu brewinggrain base. It will increase the revenue of poor households and build a new model that can serve as anexample in meeting the benchmark for targeted poverty alleviation. At the same time, it will graduallyestablish a special grain supply system for liquor production that is green and organic.
Refine educational assistance. 1) The Company will continue to promote the "Prevent Dropoutand Ensure Compulsory Education" scheme in Litang County. The Company will increase its efforts toensure educational assistance. It will donate RMB 100,000 into a special fund to subsidize 20 poorstudents from Litang County (RMB 5,000/person). It will actively promote the construction of a networkfor all middle schools and classrooms across Litang County. 2) The Company will continue to provideeducational assistance to Xingwen County and Pingshan County. The Company will continue to donatecare packages (containing schoolbags, stationaries and books) to poor students in Xingwen County andPingshan County. 3) The Company will follow up on its relief efforts to tackle education poverty in Yibin,and it will ensure the project sees substantial results. 4) The Company will carry out various activitiesand give donations once it has certified the practices of Xingwen County, Pingshan County, and LitangCounty. It will carry out research, surveys and through negotiations.Boost consumption to alleviate poverty. 1) The Company will actually push "Purchase RatherThan Donate" activities in the regions it is assisting. It will purchase agricultural products that arecharacteristic of these poor regions and distribute them as employee benefits during "Spring Festival","Mid-Autumn Festival", "Poverty Alleviation Day", and other holidays. 2) The Company will carry out the“Purchase Rather Than Donate” project and update products on a regular basis. It will collect theinformation for employees' orders, and distribute products centrally. 3) The Company will steadilypromote the centralized RMB 15 million "Purchase Rather Than Donate" project in the LiangshanPrefecture. 4) The Company will give play to advantages of the platform, actively help to expand bothon-line and off-line sales platforms/channels, and continue to promote the sales of poverty alleviation
products to drive the development of regional industry and economy and increase the revenue of themasses.
Guarantees to strengthen development. 1) The Company will actively take responsibility forrevitalizing rural Yibin. It will fund RMB 300 million to construct an "industrial path for rural revitalization"over the next three years. It will support construction of the "Four Good Rural Roads" which will maketravel easier for farmers, and it will make further improvements to the infrastructure for regionaldevelopment. 2) The Company will work with the village enterprise to construct a demonstration site inthe Baixiang Village. It will spread spiritual guidance and inspire the masses to be free of poverty. 3) TheCompany will continue to consolidate its poverty alleviation workshop in Xingwen County and will drivelocal employment, gradually increasing revenue. 4) The Company will send work groups to the counties,townships, and villages to research and survey the masses. They will inspire enthusiasm in them to befree of poverty and become rich.
3. Conditions related to environmental protection
Whether the listed company and its subsidiaries are key pollutant discharging units announced byenvironmental protection authorities
The Company and its subsidiaries voluntarily disclose the following information:
Name of theCompany orsubsidiaries
Name of mainpollutants andcharacteristic
pollutants
Emission
Means
Numberof outlets
OutletsDistribution
Emissionconcentration
Pollutantemissionstandardobserved
Totalemissions
Totalemissionsapproved
Excessiveemission
WuliangyeYibin Co., Ltd.
COD
Organizedcontinuous
emission
Outlets ofadvanced
ProtectionCompany
31.80mg/L
DischargeStandard of
treatment area of the Environmental | Water Pollutants for Fermentation | |
Alcohol andDistilled SpiritsIndustry(GB27631-2011)
133.39
tons
400 tons
Non-excess
iveAmmonianitrogen
Organizedcontinuousemission
Outlets ofadvanced
treatment area ofthe Environmental
ProtectionCompany
0.67mg/L 3.04 tons 40 tons
Non-excess
ive
Totalphosphorus
Organizedcontinuous
emission
Outlets ofadvanced
treatment area of the Environmental |
treatment area of the Environmental |
ProtectionCompany
0.39mg/L 1.62 tons /
Non-excess
ive
Total nitrogen
Organizedcontinuous
emission
Outlets ofadvanced
ProtectionCompany
9.04mg/L 37.27 tons /
Non-excessive
WuliangyeYibin Co., Ltd.
treatment area of the Environmental | ||
Sulfur dioxide
Organizedintermittent
emission
4 Park
81.84mg/m?
EmissionStandard of Air
Pollutants for
Boiler(GB13271-2014
) EmissionStandard of Air
Pollutants for
77.82 tons
3,678.33tons
Non-excess
ive
102.27mg/m?
314.55mg/m?
294.68mg/m?
(GB9078-1996)
WuliangyeYibin Co., Ltd.
and Furnace | ||
Nitrogen oxide
Organizedintermittent
emission
4 Park
207.73mg/m?
EmissionStandard of AirPollutants forBoiler(GB13271-2014) EmissionStandard of AirPollutants forIndustrial Kilnand Furnace(GB9078-1996)
243.27
tons
2,374.84tons
Non-excessive
210.31mg/m?
242.27mg/m?
215.98mg/m?
WuliangyeYibin Co., Ltd.
Particulates
Organizedintermittent
emission
4 Park
66.44mg/m?
EmissionStandard of AirPollutants forBoiler(GB13271-2014)EmissionStandard of AirPollutants forIndustrial Kilnand Furnace(GB9078-1996)
51.51 tons /
Non-excess
ive
76.80 mg/m?
31.97mg/m?
30.45mg/m?
(1) Construction and operation of pollution-control facilities
The Company has 3 wastewater pretreatment stations and 1 wastewater advanced treatment zone,using biochemical treatment and Fenton treatment technology for wastewater treatment.The Company has 15 natural gas boilers (20t/h), which adopt the advanced low NOX combustiontechnology of first-line brands of German and are under good condition. The drying boiler andenvironmental-protection boiler had been shut down in July 2019.
(2) Environmental impact assessment on construction project and other environmental
administrative licenses
The new, renovation and expansion projects of the Company all met the requirements of laws andregulations such as the national environmental protection law and the environmental impact assessmentlaw, went through the environmental impact assessment and approval process before commencement,and carried out environmental protection acceptance after completion.
(3) Contingency plan for environmental emergencies
The Company has formulated the Contingency Plan for Environmental Emergencies which hasbeen filed with Yibin Environmental Protection Bureau after expert review. On August 22, 2019, theCompany carried out the "Environmental Emergency Drill 2019" at Zone F of Push Group. According tothe drill, it is verified that the Company has effective Contingency Plan for Environmental Emergenciesand is capable of handling emergencies, and all its units cooperate closely, making orderly coordinationand organization.
(4) Environment self-monitoring scheme
From January to May of 2019, the Company disclosed the self-monitoring data to the society on theSelf-monitoring Information Disclosure Platform of Enterprise under Key Monitoring of Sichuan Provinceas required by Environmental Protection Department of Sichuan Province, and disclosed theself-monitoring data to the society on the Pollutant Source Monitoring Information Management andSharing Platform of Sichuan Province since June. The Company disclosed totally 72,862 pieces ofself-monitoring data about wastewater, flue gas, noise, etc. to the society throughout 2019.The Company, through its official website, disclosed basic information, drainage information,construction and operation of pollution preventing and controlling facilities, environmental impactassessment on construction project, and other environmental administrative licenses, contingency planfor environmental emergencies, and annual self-monitoring scheme and report of the Company to thesociety on a monthly basis with 12 issues in total.
(5) Other environmental information to be disclosed
None
(6) Other information related to environmental protection
① The Company actively promoted green projects and carried out the construction of the
coal-to-gas project (phase III).
②In 2019, the Company treated 3.9738 million tons of wastewater and the exhaust emission was
about 1.573 billion cubic meters, with 100% up-to-standard discharge/emission.
③There was no environmental pollution accident in 2019.
④In May 2019, the Company sponsored Sichuan Energy Conservation Association to hold
“Sichuan Green Industrial Development Summit Forum 2019 and the First 'Wuliangye' Cup EnergyConservation Brand Award Ceremony of Sichuan Province” to promote development of theenvironmental protection industry.
⑤Honors awarded in 2019
The cleaner production of the Company was approved and accepted, reaching domestic advancedlevel; the Company was honored as the "Sichuan Environment Integrity Enterprise 2018" and had beenreceiving this honor for three consecutive years (year 2016, 2017 and 2018); the environmentalprotection wetland project of the Company won the “Sichuan Energy Conservation and EnvironmentalProtection Brand Demonstration Project Award 2018”; and was honored as "Sichuan IndustrialResources Comprehensive Utilization Base (Park, Enterprise)" in the first batch.XIX. Note on other major events
□ Applicable √ Not applicable
The Company had no other major events to be explained during the reporting period.
XX. Major events of subsidiaries
□ Applicable √ Not applicable
Section VI Changes in Shares and Shareholders
I. Change in shares
1. Change in shares
Unit: Share
Before this change Increase/decrease (+, -) After this changeQuantity Proportion
new shares
Bonusshare
of publicreserve fund
Others Sub-total
Capitalization |
Quantity ProportionI. Restricted shares 85,839,587
2.21%
10,450
10,450
85,850,037
2.21%
3. Other domestic
shareholding
85,839,587
2.21%
10,450
10,450
85,850,037
2.21%
Including: Domesticlegal personshareholding
85,641,285
2.20%
85,641,285
2.20%
Domestic naturalperson shareholding
198,302
0.01%
10,450
10,450
208,752
0.01%
II. Unrestricted shares 3,795,768,418
97.79%
-10,450
-10,450
3,795,757,968
97.79%
1. Common share (in
RMB)
3,795,768,418
97.79%
-10,450
-10,450
3,795,757,968
97.79%
III. Total shares 3,881,608,005
100.00%
3,881,608,005
100.00%
Reasons for change in shares
√ Applicable □ Not applicable
During the reporting period, the change in shares was caused by increase of the lock-up shares ofthe resigned officers of the Company.Approval of changes in shares
□ Applicable √ Not applicable
Transfer of share changes
□ Applicable √ Not applicable
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable √ Not applicable
Impact of share changes on the basic earnings per share, diluted earnings per share, netassets per share attributable to common shareholders of the Company and other financial indexin the most recent year and the most recent period
□ Applicable √ Not applicable
Other information the Company deems necessary or required by the securities regulatoryauthorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
Name ofshareholder
Beginning numberof restricted shares
Increase incurrent period
Number ofrestricted
shares
Number of
sharesreleased incurrent period
Number ofrestricted
shares
Ending number ofrestricted shares
Reason for beingrestricted
Date of releaseLiu Zhongguo 38,850
12,950
51,800
Lock-up due toresign of officer
20200326Total 38,850
12,950
51,800
-- --
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable √ Not applicable
2. Note on changes in the total shares, shareholder structure, asset and liability structure of
the Company
□ Applicable √ Not applicable
3. Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controller(s)
1. Number and shareholding of shareholders of the Company
Unit: Share
Total commonshareholders atthe end of thereporting period
282,960
Total common
shareholders at |
the end of theprevious monthbefore thedisclosure date
of the Annual
Report
296,724
Total preferredshareholders with voting
rights restored (if any) at |
the end of the reporting
period
Totalpreferred
with voting
rightsrestored (ifany) at theend of theprevious
month before |
thedisclosuredate of thereporting
period
Shareholders holding more than 5% shares or top 10 shareholdersName of shareholder
Nature ofshareholder
Shareholding
Proportion
Number ofshares held atthe end of thereporting period
Quantity
Increase
or
decrease |
during
thereporting
period
Number ofrestrictedshares held
Number ofunrestrictedshares held
Pledge or freezing
Status QuantityYibin State-Owned AssetsOperation Co., Ltd.
State-ownedlegal person
35.21%
1,366,548,020
1,366,548,020
Sichuan Yibin Wuliangye GroupCo., Ltd.
State-ownedlegal person
19.63%
761,823,343
761,823,343
Hong Kong Securities Clearing Co., |
Ltd.
Overseas legal
person
8.64%
335,547,084
335,547,084
China Securities FinanceCorporation Limited
Others 2.38%
92,385,936
92,385,936
Central Huijin Asset ManagementCo., Ltd.
State-ownedlegal person
1.04%
40,192,100
40,192,100
China Life Insurance CompanyLimited - Traditional - OrdinaryInsurance Product-005L-CT001Shenzhen
Others 0.87%
33,683,218
33,683,218
Wuliangye Yibin Co., Ltd. -Employee Stock Ownership Plan(Phase I)
Others 0.61%
23,696,280
23,696,280
Shanghai Guotai Junan SecuritiesAsset Management Co., Ltd. -Bank of China-Guotai JunanJunxiang Wuliangye No.1Collective Asset Management Plan
Others 0.50%
19,414,047
19,414,047
Agricultural Bank of China Limited -
E Fund Consumption IndustryEquity Securities Investment Fund
Others 0.38%
14,772,807
14,772,807
Taikang Life Insurance Co., Ltd. -Bonus - PersonalBonus-019L-FH002 Shenzhen
Others 0.33%
12,820,710
10,421,704
2,399,006
Explanations about the association relationship orconcerted action among the above-mentionedshareholders
Among the top 10 shareholders of the Company, Sichuan Yibin Wuliangye Group Co., Ltd. isa wholly-owned subsidiary of Yibin State-owned Assets Operation Co., Ltd., and it is unclearwhether other public shareholders have any association relationship or acting in concert.Shareholding of top 10 shareholders with unrestricted sharesName of shareholder
Number of
held at the end ofthe reportingperiodQuantity
Class of shareClass of share QuantityYibin State-Owned Assets Operation Co., Ltd. 1,366,548,020
unrestricted shares |
Common share(in RMB)
1,366,548,020
Sichuan Yibin Wuliangye Group Co., Ltd. 761,823,343
Common share(in RMB)
761,823,343
Hong Kong Securities Clearing Co., Ltd. 335,547,084
Common share
(in RMB)
335,547,084
China Securities Finance Corporation Limited 92,385,936
Common share
(in RMB)
92,385,936
Central Huijin Asset Management Co., Ltd. 40,192,100
Common share
(in RMB)
40,192,100
China Life Insurance Company Limited - Traditional - Ordinary InsuranceProduct-005L-CT001 Shenzhen
33,683,218
Common share(in RMB)
33,683,218
Agricultural Bank of China Limited - E Fund Consumption Industry EquitySecurities Investment Fund
14,772,807
Common share
(in RMB)
14,772,807
Bank of China Limited - E Fund Small Hybrid Securities Investment Fund 12,800,000
Common share
(in RMB)
12,800,000
Bank of China Limited - CMF CSI White Spirit Index Classification SecuritiesInvestment Fund
11,425,051
Common share
(in RMB)
11,425,051
Industrial and Commercial Bank Of China Limited - Invesco Great Wall EmergingGrowth Hybrid Securities Investment Fund
10,303,601
Common share
(in RMB)
10,303,601
Note on the association relationship or concerted action between top 10unrestricted public shareholders, and between top 10 unrestricted publicshareholders and top 10 shareholders
Among the top 10 shareholders of the Company, Sichuan Yibin |
Wuliangye Group Co., Ltd. is a wholly-owned subsidiary ofYibin State-owned Assets Operation Co., Ltd., and it is unclearwhether other public shareholders have any associationrelationship or acting in concert.Whether the Company’s top 10 common shareholders and top 10 unrestricted commonshareholders agreed on a repurchase transaction during the reporting period
□ Yes √ No
The Company’s top 10 common shareholders and top 10 unrestricted common shareholders did not
agree on a repurchase transaction during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholder: local state-ownedType of controlling shareholder: legal person
Name of controlling shareholder
Legalrepresentative/head of unit
Date of establishment Organization code Primary businessYibin State-Owned Assets Operation
Co., Ltd.
Han Cheng August 04, 1999 915115007118234259
Capital operation and assets
operation within the scopeauthorized by the People'sGovernment of Yibin CityEquity of other domestic and foreign
listed companies controlled and
participated by controllingshareholder during the reporting
period
Yibin State-Owned Assets Operation Co., Ltd. directly holds 131,847,574 shares of Yibin TianyuanGroup Co., Ltd., taking up 16.88%; indirectly holds 56,691,800 shares of Yibin Paper Industry Co.,Ltd., taking up 44.87%.
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
There was no change in controlling shareholder of the Company during the reporting period.
2. Actual controller of the Company and person acting in concert
Nature of actual controller: local state-owned assets administration
Type of actual controller: legal personName of actual controller
Legalrepresentative/
head of unit
Date of establishment
Organization
code
Primary businessState-owned Assets Supervision andAdministration Commission of Yibin
Municipal Government
Ying Yuanjun February 24, 2005 Not applicable Not applicableEquity of other domestic and foreignlisted companies controlled by actualcontroller during the reporting period
Yibin State-owned Assets Supervision and Administration Commission directly holds56,691,800 shares of Yibin Paper Industry Co., Ltd., taking up 44.87%; indirectly holds131,847,574 shares of Yibin Tianyuan Group Co., Ltd., taking up 16.88%.
Change of actual controller during the reporting period
□ Applicable √ Not applicable
There was no change in actual controller of the Company during the reporting period.Block diagram of equity and control relationship between the Company and actual controller:
The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not applicable
4. Other legal person shareholders holding more than 10%
√ Applicable □ Not applicable
Name of legal person shareholder
representative/
head of unit |
Date of establishment
Registered capital(RMB)
Primary business or management
activitiesSichuan Yibin Wuliangye Group Co.,
Ltd.
Li Shuguang August 12, 1998 1,000,000,000
5. Restricted share reduction of controlling shareholder, actual controller, reorganizer and
other commitment makers
□ Applicable √ Not applicable
Investment and investmentmanagement, assets management,enterprise management service
State-owned Assets Supervision and AdministrationCommission of Yibin Municipal Government
Yibin State-Owned Assets Operation Co., Ltd.
Sichuan Yibin Wuliangye Group Co., Ltd.
Wuliangye Yibin Co., Ltd.
State-owned Assets Supervision and AdministrationCommission of Yibin Municipal Government
35.21%
100%
100%
19.63%
Section VII Preferred Share
□ Applicable √ Not applicable
The Company had no preferred shares during the reporting period.
Section VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds during the reporting period.
Section IX Directors, Supervisors, Senior Management and Employees
I. Changes in shareholdings of directors, supervisors, and Senior managementName Position
Status ofservice
Gender Age
Date ofappointment
Date ceasingto hold office
Number of
at the
beginning of |
the period(share)
Increase innumber of
in current
period(share)
shares held | Decrease in number |
of shares
held incurrentperiod(share)
Otherincrease/decrease
(share)
Number ofshares heldat the end ofthe period
(share)ZengCongqin
Deputy Secretary ofCPC, President
Incumbent Male 51
September 27,
2019
Till now
LiShuguang
Secretary of CPC,
Director
Incumbent Male 57 April 21, 2017 Till now
Chen Lin
Deputy Secretary ofCPC, Director, GeneralManager, Chief
Engineer
Incumbent Female 59 July 18, 2014 Till now 98,191
98,191
Zou Tao
Member of CPC,
Director, Executive
Deputy General
Manager
Incumbent Male 41 July 21, 2018 Till now
JiangWenge
Member of CPC,
Director
Incumbent Male 53 May 10, 2019 Till now
FuNanping
Independent Director Incumbent Male 58 July 18, 2014 Till now
ZhouYousu
Independent Director Incumbent Male 67 June 22, 2016 Till now
GanShengdao
Independent Director Incumbent Male 53
November 18,
2016
Till now
YangYunxia
Member of CPC,Chairman of LaborUnion, Employee
Supervisor
Incumbent Female 48 July 18, 2014 Till now
RenShiming
Supervisor Incumbent Male 54 July 18, 2014 Till now
Qiu Ping Supervisor Incumbent Female 55 July 18, 2014 Till now 2,000
2,000
WuGuoping
Employee Supervisor Incumbent Male 50 June 09, 2015 Till now
ZhuZhongyu
Member of CPC,Deputy General
Manager
Incumbent Male 56 July 18, 2014 Till now 11,501
11,501
TangBochao
Member of CPC,Deputy General
Manager
Incumbent Male 55 July 18, 2014 Till now 20,000
20,000
TangShengyun
Member of CPC,Deputy General
Manager
Incumbent Male 57 July 18, 2014 Till now 9,100
9,100
Luo Wei
Member of CPC,Deputy GeneralManager, ChiefFinancial Officer
Incumbent Male 55 July 18, 2014 Till now
Zhao
Dong
Member of CPC,Deputy GeneralManager, Deputy ChiefEngineer
Incumbent Male 55 July 21, 2018 Till now
Total -- -- -- -- -- -- 140,792
140,792
II. Change of directors, supervisors and senior management of the Company
√ Applicable □ Not applicable
Name Position Type Date Reason
LiuZhongguo
Deputy Secretary ofCPC, President
Retired September 27, 2019
Retired as director of the 5th board of directors andPresident due to reaching the mandatory age for retirementZengCongqin
Deputy Secretary ofCPC, President
Appointment
anddismission
September 27, 2019
New president as appointed by higher organization andappointed and dismissed by the general meetingJiang Wenge
Member of CPC,Director
anddismission
May 10, 2019
Take the position of Director as appointed by higherorganization and appointed and dismissed by the generalmeetingZhang Hui Director Dismissed May 10, 2019
Dismissed from the position of Director by the generalmeetingRemark: 1. In September of 2019, Mr. Fu Nanping applied for resigning as Independent Director ofthe 5th board of directors of the Company. The resignation application would become effective after thegeneral meeting of the Company elects the new independent director. On October 16, 2019, the boardof directors of the Company nominated Mr. Han Cheng as the candidate for director of the 5th board ofdirectors of the Company, which had to be submitted to the general meeting for consideration.
2. On October 16, 2019, the board of directors of the Company nominated Ms. Liu Feng and Ms.
Yang Ling as the candidate for supervisor of the 5th board of supervisors of the Company and Mr. RenShiming and Ms. Qiu Ping resigned as supervisors, which had to be submitted to the general meeting forconsideration.III. Service statusProfessional background, main work experience and main responsibilities currently in the Companyof current directors, supervisors and senior management of the Company
1. Mr. Zeng Congqin, doctoral candidate. He began to work in July 1988 and successively served
in Changning County of Yibin, municipal authorities, and Cuiping District. He once served as a memberof the Standing Committee, Director of the Propaganda Department, and Executive Deputy County Chiefof Changning County, Director of the Development Planning and Investment Service Bureau of YibinLingang Economic Development Zone, Secretary of the Party Leadership Group and Director of YibinMunicipal Development and Reform Commission and Director of Municipal Price Bureau, Director ofYibin Municipal Bureau of Energy, and Secretary of Cuiping District Committee. At present, he serves asthe Deputy Secretary of CPC and President of the Company, Deputy Secretary of CPC, Director, andGeneral Manager of the Group Company, and Secretary of the Party Working Committee of YibinLingang National Economic and Technical Development Zone.
2. Mr. Li Shuguang, bachelor degree, senior economist. He began to work in July 1983 and once
served the Sichuan Provincial Machinery Industry Department, Sichuan Provincial Planned EconomyCommittee, Sichuan Provincial Economic Commission, Sichuan Provincial Economic and TradeCommission, Sichuan Provincial Economic Commission, and Sichuan Provincial Economic andInformation Commission. He once served as Assistant Mayor of Luzhou People's Government,
Chairman of Board of Supervisors of State-owned Enterprises of Sichuan Provincial Government, ChiefEconomist of Sichuan Provincial Economic and Information Commission, Deputy Secretary of theLeading Party Group and Deputy Director of Sichuan Provincial Economic and Information Commission.At present, he serves as the Secretary of CPC and Director of the Company, and Secretary of CPC andPresident of the Group Company.
3. Ms. Chen Lin, bachelor degree, professor level senior engineer, senior technician, senior
sommelier, senior winemaker, China Liquor Brewing Master, and China Liquor Master. She began towork in Wuliangye Liquor Factory in March 1980, served as the Secretary of Party Branch and Directorof the Mellow Blending Workshop of Yibin Wuliangye Liquor Factory since December 1992, served asDeputy General Manager of the Company since April 1998, and served as Member of CPC and Directorof the Group Company, and the Director, General Manager, and Chief Engineer of the Company sinceApril 2004. She now serves as the Deputy Secretary of CPC, Director, General Manager, and ChiefEngineer of the Company, Member of CPC and Director of the Group Company, and Director andGeneral Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
4. Mr. Zou Tao, master degree. He began to work in July 2004 and once served the Economic
Investigation Department of Sichuan Provincial Public Security Department, Sichuan ProvincialDiscipline Inspection Commission, and Sichuan Provincial Department of Supervision. He once servedas the Deputy Director of No. 4 Office of Discipline Inspection and Supervision and Director of the No.2Office of Discipline Inspection and Supervision of Sichuan Provincial Discipline Inspection Commission.In January 2017, he served as the Deputy Secretary of CPC of the Group Company. He now serves asMember of CPC, Director, and Executive Deputy General Manager of the Company, and Member ofCPC and Vice President of the Group Company, and concurrently as President of Wuliang NongXiangSeries Baijiu Yibin Co., Ltd.
5. Mr. Jiang Wenge, master degree. He began to work in August 1985 and successively served in
Peng'an County and Shunqing District of Nanchong City, Sichuan, and Sichuan Provincial Developmentand Reform Commission, and Welfare-to-work Office of Sichuan Province. He once served as DeputyHead of Shunqing District Government, Deputy Director of Employment and Income Distribution Office,Deputy Director of Division of Rural Economy, and Director of Division of Rural Economy of SichuanProvincial Development and Reform Commission, and the Deputy Director and Primary Investigator ofWelfare-to-work Office of Sichuan Province. He now serves as Member of CPC and Director of theCompany, and Member of CPC, Director and Deputy General Manager of the Group Company.
6. Mr. Fu Nanping, doctoral candidate. He began to work in September 1985 and once served the
Office of Science and Technology of Nanchang Aircraft Manufacturing Company, and successivelyserved as Deputy Manager of Issuance Department of SDIC Securities Co., Ltd (Guosen Securities),Deputy General Manager of Investment Bank Headquarter, Junan Securities Co., Ltd., General Managerof Investment Bank Department II, Deputy Director of Corporate Financing Headquarter, and DeputyGeneral Manager of Shenzhen Headquarter of Guotai Junan Securities Co., Ltd. He now serves as theBusiness Inspector and Supervisor of Guotai Junan Securities Co., Ltd. and Independent Director of theCompany.
7. Mr. Zhou Yousu, bachelor degree, professor. He began to work in July 1983 and once served
Sichuan Academy of Social Sciences and Meigu County Committee of Sichuan Province. He nowserves as researcher and professor of Sichuan Academy of Social Sciences and Independent Director ofthe Company.
8. Mr. Gan Shengdao, doctoral candidate. He has been working on the teaching and scientific
research of financial management and accounting at Sichuan University since July 1990. He now servesas professor, doctoral supervisor, post-doctoral co-supervisor in accounting of Business School, SichuanUniversity, independent director of the Company, independent director of Changhong Meiling Co., Ltd.,independent director of Sichuan Yahua Industrial Group Co., Ltd., independent director of SinosealHolding Co., Ltd., independent director of Chengdu XGimi Technology Co., Ltd., independent director ofRML Technology Co., Ltd., and outside director of Sichuan Huashi Group Ltd.
9. Ms. Yang Yunxia, bachelor degree, senior political analyst. She began to work in Wuliangye
Liquor Factory in July 1991, served as middle management since August 2003, and served as Directorof the Mass Work Department and Director of the Women's Working Committee of the Company in July2015. She served as Member of CPC and Chairman of the Labor Union of the Company in June 2018.She now serves as Member of CPC, Chairman of the Labor Union, and Employee Supervisor of theCompany, and concurrently as Director of the Mass Work Department.
10. Mr. Ren Shiming, bachelor degree, senior accountant, and senior international finance
manager (SIFM). He began to work in July 1989 and successively served as Chief Accountant of theFinance Office of Sichuan Automobile Factory, Chief Accountant of Chongqing Hongyan AutomobileTransmission Shaft Factory, Chief Accountant and Deputy Chief of the Finance Section of YibinInvestment Co., Ltd., Chief of the Finance Section, Director of Finance Department, and Director ofInvestment Department of Yibin State-Owned Assets Operation Co., Ltd. He now serves as Director and
Employee Supervisor of the Professional Committee Office of Yibin State-Owned Assets Operation Co.,Ltd. and Supervisor of the Company.
11. Ms. Qiu Ping, college degree, Chinese Certified Public Accountant. She successively served as
Deputy Chief of the Enterprise Section of Yibin Municipal Bureau of Finance, Deputy General Managerof Yibin Investment Group Company Urban Investment Company, Director of Yibin Assets and EquityExchange, Director of Financing Department and Director of Finance Department of Yibin State-OwnedAssets Operation Co., Ltd. She now serves as the Assistant of General Manager of Yibin State-OwnedAssets Operation Co., Ltd. and Supervisor of the Company.
12. Mr. Wu Guoping, bachelor degree, auditor and senior sourcer. He began to work in August
1989 and once served Yibin City Bureau of Audit, transferred to the Company and served as DeputyDirector of the Audit Department in May 2015, Employee Supervisor of the Company in June 2015, andDeputy Director of the Audit Supervision Department in July 2015. He now serves as EmployeeSupervisor of the Company and Deputy Director of the Audit Supervision Department.
13. Mr. Zhu Zhongyu, master degree, senior salesman, economist, and political analyst. He began
to work in Wuliangye Liquor Factory in August 1985, and served as Deputy General Manager of theCompany since April 2003. He now serves as Member of CPC and Deputy General Manager of theCompany, and concurrently as President of Wuliangye Xianlin Ecological Liquor Co., Ltd. and ExecutiveDeputy General Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
14. Mr. Tang Bochao, master degree, senior economist. He began to serve in Mengzi Military
Sub-command of People's Liberation Army of China since October 1983, and began to work inWuliangye Liquor Factor in March 1987 and served as Member of CPC and Deputy General Manager ofthe Company since August 2012. He now serves as Member of CPC and Deputy General Manager ofthe Company.
15. Mr. Tang Shengyun, master degree, professor level senior engineer and China Liquor Brewing
Master. He began to work in Wuliangye Liquor Factory in July 1987, and served as Member of CPC andDeputy General Manager of the Company since August 2012. He now serves as Member of CPC andDeputy General Manager of the Company.
16. Mr. Luo Wei, master degree. He began to work in July 1986 and once served Yibin Municipal
Bureau of Finance, Yibin Municipal Auditing Bureau, Yibin Investment Group Co., Ltd., and Yibin AirportCo., Ltd. He served as Member of CPC, Deputy General Manager, and Chief Financial Officer of theCompany in February 2014. He now serves as Member of CPC, Deputy General Manager, and Chief
Financial Officer of the Company.
17. Mr. Zhao Dong, bachelor degree, professor level senior engineer. He began to work in August
1986 and once served Sichuan Light Industry School. He began to work in Wuliangye Liquor Factory inMay 1989, and served as Director of the Research Center of the Company in November 2012. Heserved as Member of CPC and Deputy Chief Engineer of the Company in July 2017, and DeputyGeneral Manager of the Company in June 2018. He now serves as Member of CPC, Deputy GeneralManager, and Deputy Chief Engineer of the Company.
Service status in the shareholder's unit
√ Applicable □ Not applicable
Name of staff Name of shareholder's unit
Position in shareholder's
unit
Date ofappointment
Dateceasingto holdoffice
Whether to
receiveremuneration orallowance in theshareholder's unit
Li Shuguang
Sichuan Yibin Wuliangye Group
Co., Ltd.
Secretary of CPC,
President
NoZeng Congqin
Sichuan Yibin Wuliangye Group
Co., Ltd.
Member of CPC, Director, |
General Manager
NoChen Lin
Sichuan Yibin Wuliangye Group
Co., Ltd.
Member of CPC, Director
NoZou Tao
Sichuan Yibin Wuliangye Group
Co., Ltd.
Member of CPC, Vice
President
YesJiang Wenge
Sichuan Yibin Wuliangye Group
Co., Ltd.
Member of CPC, Director,
Deputy General Manager
NoRen Shiming
Yibin State-Owned Assets
Operation Co., Ltd.
Director of Professional
Committee Office,Employee Supervisor
YesQiu Ping
Yibin State-Owned Assets
Operation Co., Ltd.
Assistant of General
Manager
Yes
Service status in other units
√ Applicable □ Not applicable
Name of staff Name of other unit Position in other unit
Date ofappointment
Date
to holdoffice
Whether to
receive
ceasing | remuneration or |
allowance in
other unitsFu Nanping Guotai Junan Securities Co., Ltd.
Business Inspector
and Supervisor
YesZhou Yousu Sichuan Academy of Social Sciences Researcher, professor
Yes
GanShengdao
Sichuan University
Professor, doctoral
supervisor, and
post-doctoralco-supervisor in
accounting
YesChanghong Meiling Co., Ltd., SichuanYahua Industrial Group Co., Ltd.,Sinoseal Holding Co., Ltd., ChengduXGimi Technology Co., Ltd., and RMLTechnology Co., Ltd.
Independent DirectorSichuan Huashi Group Ltd. Outside Director
Chen Lin Yibin Wuliangye Liquor Sales Co., Ltd.
Director, General
Manager
NoZou Tao
Wuliang NongXiang Series Baijiu Yibin
Co., Ltd.
President NoTang Bochao Oriental Outlook Media Co., Ltd. Vice President No
Luo Wei
Co., Ltd.
President NoZhu Zhongyu
Yibin Wuliangye Xianlin Ecological
Liquor Co., Ltd.
President NoYibin Wuliangye Liquor Sales Co., Ltd.
Executive DeputyGeneral Manager
No
Punishment against current directors, supervisors and officers of the Company and those whoresigned during the reporting period by securities regulators in recent three years
□ Applicable √ Not applicable
IV. Remuneration of directors, supervisors and senior management
Decision-making procedures, determination basis and actual payment of remuneration of directors,supervisors and senior management.
1. Decision-making procedures
The Company had formulated the remuneration distribution scheme for officers of the Companyaccording to relevant systems and provisions of superior departments and the Company, which would bereported to the remuneration committee of the board of directors for approval, and then submitted to theboard of directors of the Company for approval before implementation.
2. Determination basis
The Company determined remuneration of the directors, supervisors and senior managementbased on evaluation according to relevant systems and provisions.
3. Actual payment of remuneration
Part of the basic remuneration was paid monthly and part of the performance pay was paid withinthe year.
Remuneration of directors, supervisors and senior management of the Company during thereporting period
Unit: RMB ’0,000Name Position Gender Age
Status of
service
Totalremunerationreceived fromthe Company
Whether to get
remunerationfrom relatedparties of the
CompanyZeng Congqin President Male 51 Incumbent NoLi Shuguang Director Male 57 Incumbent 73.29 No
Chen Lin Director Female 59 Incumbent 74 NoZou Tao Director Male 41 Incumbent YesJiang Wenge Director Male 53 Incumbent 44.05 NoFu Nanping Independent Director Male 58 Incumbent 10 NoZhou Yousu Independent Director Male 67 Incumbent 10 NoGan Shengdao Independent Director Male 53 Incumbent 10 No
Yang Yunxia Employee Supervisor Female 48 Incumbent 66.22 NoRen Shiming Supervisor Male 54 Incumbent Yes
Qiu Ping Supervisor Male 55 Incumbent YesWu Guoping Employee Supervisor Male 50 Incumbent 46.23 NoZhu Zhongyu Deputy General Manager Male 56 Incumbent 66.56 NoTang Bochao Deputy General Manager Male 55 Incumbent 67.01 NoTang Shengyun
Deputy General Manager Male 57 Incumbent 66.81 No
Luo Wei
Deputy General Manager, |
Chief Financial Officer
Male 55 Incumbent 66.26 NoZhao Dong
Deputy Chief Engineer
Male 55 Incumbent 68.56 NoLiu Zhongguo Former President Male 64 Resigned 75.13 No
Total 744.12Remarks: 1. The above-mentioned persons (except for the independent directors) received part ofthe annual performance pay of 2018; Allowances received by the independent directors weretax-inclusive.
2. Due to the good performance in 2017-2018, the superiors paid one-off non-wage bonus to relevant
senior management of the Company.
Equity incentive granted to directors and officers of the Company during the reportingperiod
□ Applicable √ Not applicable
V. Company employees
1. Number, professional composition and educational background of employees
Number of employees in the parent company (person) 17,896
Deputy General Manager,
Number of employees in main subsidiaries (person) 8,452
Total employees (person) 26,348
Total employees receiving salary in the current period(person)
26,348
Number of retired employees whose expenses need to beborne by the parent company and main subsidiaries(person)
Professional compositionCategory of professional composition Number of professionals (person)
Production personnel 19,185
Marketing personnel 1,150
Technician 4,943
Financial personnel 158
Administrative personnel 912
Total 26,348
Educational backgroundCategory of education background Number (person)
College and above 4,738
Senior high school to college 14,746
Middle school and below 6,864
Total 26,348
2. Remuneration policy
The Company strictly abides by the provisions of relevant national laws and regulations andcomplies with the scheme of operation benefit linked up with performance and relevant remunerationmanagement system of the Company.
3. Training plan
In 2020, training work of the Company will center on the strategic layout of "Reform, Innovation,Transformation, and Development" and focus on construction of the talent team to strengthen thefoundation of innovation and development. The Company will carry out hierarchical and classifiedtrainings with rich contents and by flexible means based on the demand of the Company for reform anddevelopment and the demands of employees for diversified trainings, enhancing the planning,pertinency and effectiveness of educational training. The Company plans to carry out 12 “WuliangyeLectures”, 121 professional trainings at company level, 335 professional trainings at workshop anddepartment level, 97 external trainings, and 66 skill trainings to provide strong human resourcesguarantee for the reform and innovation of the Company, so as to effectively match up with and promotestrategic improvement of the Company and achievement of the annual operation objectives.
4. Labor outsourcing
□ Applicable √ Not applicable
Section X Corporate Governance
I. Basic information of corporate governance
The Company, being dedicated to the construction and improvement of the corporate governancestructure, has established, and will continue to revise and improve relevant rules and regulations in strictaccordance with the Company Law, Securities Law, Governance Guidelines for Listed Companies, andother laws and regulations. The Company has established relevant rules and regulations for the generalmeeting, the board of directors and the board of supervisors to ensure that they will exercise thediscretion, decision-making right, and right of supervision. The board of directors of the Company hasset up five special committees: strategic committee, remuneration and appraisal committee, nominationcommittee, audit committee, and comprehensive budget management committee, which effectivelypromoted the standardized operation of the board of directors.During the reporting period, the Company revised the Articles of Association, Procedure Rules ofthe Board of Directors, Procedure Rules of Board of Supervisors and Procedure Rules of the GeneralMeeting, further improving the Company's management system.
Whether there is any significant difference between the actual situation of corporate governanceand the normative documents on governance of the listed company issued by China SecuritiesRegulatory Commission
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and thenormative documents on listed corporate governance issued by China Securities RegulatoryCommission.II. Independence of the Company from its controlling shareholders in respect ofbusiness, personnel, assets, organization and finance
The Company was 50-50 separated from the controlling shareholders in respect of business,personnel, assets, organization and finance, and had independent and complete production andoperation system and independent operation capability.
In respect of business, the Company owned independent production and operation system,auxiliary production system and corresponding supporting facilities, and had the ability to makedecisions about operating activities independently.
In respect of personnel, the Company carried out independent management on labor, personneland salary matters.
In respect of assets, the Company had ownership and right of control over its assets, and the
controlling shareholders did not occupy the assets or funds of the Company.In respect of organization, the Company had independent main production and operationmanagement organization and system.In respect of finance, the Company owned independent financial department, establishedindependent accounting system and financial management system, and opened independent bankaccount.
III. Peer competition
□ Applicable √ Not applicable
IV. Note on the annual general meeting and extraordinary general meeting heldduring the reporting period
1. General meeting during the reporting period
Meeting session Meeting type
InvestorParticipationproportion
Conveningdate
Disclosure date Disclosure indexAnnual General Meeting
2018
meeting
71.25% May 10, 2019 May 11, 2019
CNINFO(http://www.cninfo.com.cn)
Annual general | |
First Extraordinary General |
Meeting 2019
Extraordinary
generalmeeting
64.94%
2019
September 28,
2019
2. Extraordinary general meeting convened at the request of preferred shareholders with
voting rights restored
□ Applicable √ Not applicable
V. Performance of duties by independent directors during the reporting period
1. Attendance of board meeting and general meeting by independent directors
Attendance of board meeting and general meeting by independent directorsName ofindependentdirector
Number ofboardmeetings tobe attended
during thereporting
period
Number of
boardmeetingsattended on
site
Number of
September 27,board meetings
attended bycorrespondence
Number of
boardmeetingsdelegatedto attend
meetings absent
Whether failsto personally
attend theboard meeting
for twoconsecutive
times
generalmeetingsattendedFu Nanping 20 2 18 0 0 No 1Zhou Yousu 20 2 18 0 0 No 2Gan Shengdao 20 2 18 0 0 No 2
2. Objections made by independent directors on relevant matters of the Company
Whether the independent directors make objections on relevant matters of the Company
□ Yes √ No
The independent directors made no objections on relevant matters of the Company during thereporting period.
3. Other note on the performance of duties by the independent directors
Whether relevant suggestions of the independent directors on the Company are adopted
√ Yes □ No
Note on adoption or non-adoption of relevant suggestions of the independent directors on theCompany
During the reporting period, the independent directors of the Company performed their dutiesindependently in strict accordance with relevant laws, regulations and the Articles of Association, putforwarded professional opinions or suggestions on operating decision of the Company, issuedindependent opinions on matters of the Company which needed the opinions of independent directorsduring the reporting period, and played its due role in safeguarding legal rights interests of the Companyand all shareholders.VI. Performance of duties by special committees under the board of directors duringthe reporting period
The board of directors of the Company has set up five special committees: strategic committee,remuneration and appraisal committee, nomination committee, audit committee, and comprehensivebudget management committee.
(I) Performance of duties by the strategic committee
During the reporting period, the strategic committee of the Company convened three meetingsaccording to relevant requirements of the Implementation Rules for Strategic Committee of the Company,studying the "13th Five-year" strategic development of the Company, implementation of the strategy forthe first half of the year and economic performance of the Company, and preliminary work of the "14thFive-year" plan of the Company.
(II) Performance of duties by the audit committee
During the reporting period, the audit committee was diligent and responsible in performing theresponsibilities required by the system: 1. Review the Company's 1st quarter report of 2019,semi-annual report of 2019, and the 3rd quarter report of 2019 and form resolutions; 2. Review theCompany's renewal of employment of the accounting firm in 2019 and the audit fee, and form resolutions;
3. Determine the timing of audit of the financial and accounting statements 2019 through consultation
with the accounting firm responsible for annual audit of the Company; 4. Communicate with theaccounting firm and independent directors before entry of the auditor of the Annual Report 2019; 5.Review, for the first time, the summary financial and accounting statements of 2019 preliminarilyprepared by the Department of Finance of the Company before entry of the CPAs for the annual audit,and provide written comments; 6. After entry of the CPA for annual audit, the audit committee and theCPAs for annual audit communicated about problems found during the audit and the time for submittingthe audit report; 7. The audit committee further reviewed the Company's financial and accountingstatements 2019 and form resolutions after the CPAs for the annual audit issued the preliminary audit
opinions.(III) Performance of duties by the nomination committeeThe nomination committee convened two meetings during the reporting period according to relevantprovisions of the Implementation Rules for Nomination Committee of the Company. Mr. Zeng Congqinwas nominated as the candidate for director and president of the 5th board of directors of the Companyat the first meeting; the proposal of nominating Mr. Han Cheng as the candidate for director of the 5thboard of directors of the Company was approved at the second meeting.(IV) Performance of duties by the remuneration and appraisal committeeThe remuneration and appraisal committee, according to relevant provisions of the ImplementationRules for Remuneration and Appraisal Committee of the Company, issued audit opinion on theremuneration payment of officers of the Company in 2019 during the reporting period.
(V) Performance of duties by the comprehensive budget management committee.The committee, according to relevant provisions of the Implementation Rules for ComprehensiveBudget Management Committee of the Company, Serious performance of dutiesreviewed and approvedthe Annual Budget Scheme 2019 and the Comprehensive Budget Adjustment Scheme 2019 during thereporting period.VII. Work of the board of supervisorsWhether the board of supervisors find any risk of the Company in the supervision activities duringthe reporting period
□ Yes √ No
The board of supervisors has no objection to the supervisory matters during the reporting period.
VIII. Appraisal and incentive of senior managementRefer to "Section IX, IV. Remuneration of directors, supervisors and officers" of the Report fordetails.IX. Internal control
1. Details of major internal control defects found during the reporting period
□ Yes √ No
2. Self-evaluation report on internal control
Disclosure date of internal control evaluation report (full text) April 28, 2020Disclosure index of internal control evaluation report (full text) CNINFO (http://www.cninfo.com.cn)
statement of the Company
100%Proportion of operating revenue of the unit included in theevaluation scope to the operating revenue of the consolidatedfinancial statement of the Company
100%
Defect identification standardCategory Financial report Non-financial report
Qualitative standard
1. Major defects: (1) Correction by the
Company of the financial statements whichhave been published. (2) Materialsmisstatements found by the external auditor
been identified. (3) Corrupt practice ofdirectors, supervisors, and officers found bythe external auditor. (4) Ineffectivesupervision of internal control by theCompany’s internal audit department. (5)Major defects previously found but were notcorrected within a reasonable period or wereineffectively corrected. 2. Important defects:
(1) Failure to select and apply accounting
policies in accordance with generallyaccepted accounting principles; (2) Failure toeffectively control irregular (non-repeating) orcomplicated transactions. (3) Failure toeffectively control the anti-corrupt work. (4)Ineffective internal control over the financialreport at the end of the period.3. Common
defects: Defects other than major defects and important defects are recognized as common |
defects.
1. Major defects: (1) In violation of
national laws, regulations, or normativedocuments. (2) Unscientific enterprisedecision-making procedure, such aswrong decision, which causes failure ofmajor transactions. (3) Loss ofmanagement personnel or technician ofimportant posts. (4) Lack of institutionalcontrol or systematic failure of theinstitution for important businesses, andexistence but ineffective operation ofinstitutional guidance for internal controlof important economic business. (5)Failure to correct major defect within areasonable period.
2. Important defect: (1) Property loss not
reaching or exceeding the level ofmateriality but should be noticed by theboard of directors and the managementin nature. (2) Individual events criticizedby government departments, causingmoderate negative influence onreputation of the Company. (3) Violationof internal rules and regulations of the
in important business mechanism orsystem.
3. Common defects: Other defects in
internal control other than major defectsand important defects.
Quantitative standard
1. Major defects: Misstatement amount >3%
of total operating revenue; misstatementamount >10% of net profit; misstatementamount >3% of total assets. 2. Importantdefects: 1% of total operating revenue <
enterprise and causing losses. (4) Defect |
1. Major defects: Proportion of loss to net |
profit ≥5%. 2. Important defects: 3%≤proportion of loss to net profit <5%. 3.Common defects: Proportion of loss tonet profit <3%.
misstatement amount ≤ 3% of total operatingrevenue; 5% of net profit < misstatement
< misstatement amount ≤ 3% of total assets.
3. Common defects: Misstatement amount
≤1% of total operating revenue; misstatement |
amount ≤5% of net profit; misstatementamount ≤1% of total assets.
financial reports (piece)
Number of major defects innon-financial reports (piece)
Number of major defects inNumber of important defects in
financial reports (piece)
Number of
Number of important defects in |
important defects in |
non-financial reports (piece)
X. Internal control audit report
√ Applicable □ Not applicable
Audit opinion paragraphs in the internal control audit reportSichuan Huaxin (Group) CPA (LLP) believes that the Company maintained effective internal control over the financialreport on all significant aspects in accordance with the Basic Criteria of Enterprise Internal Control and relevantprovisions as of December 31, 2019.Disclosure of internal control audit report DisclosedDisclosure date of internal control audit report (fulltext)
April 28, 2020
text)
Refer to CNINFO (http://www.cninfo.com.cn) for detailsType of opinions of internal control audit report Standard unqualified opinionWhether non-financial report has major defects No
Whether the accounting firm issues an internal control audit report with non-standard opinion
□ Yes √ No
Whether the internal control audit report from the accounting firm is in consistent with the opinions ofthe self-evaluation report from the board of directors
√ Yes □ No
Section XI Corporate BondsWhether the Company has bonds publicly issued and listed on the stock exchange that have notmatured or matured but not paid in full on the date of approval of the Annual ReportNo
Section XII Financial ReportI. Audit ReportType of audit opinion Standard unqualified opinionDate of signing the Audit Report April 24, 2020Name of Audit Firm Sichuan Huaxin (Group) CPA (LLP)Audit Report No. CHXS (2020) No. 0031Name of CPAs Li Min, Liu Jun
Audit Report (Text)To all shareholders of Wuliangye Yibin Co., Ltd.:
I. Audit opinionWe have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to asthe Company), including the consolidated balance sheet and the balance sheet of parent company as ofDecember 31, 2019, consolidated income statement and income statement of parent company,consolidated cash flow statement and cash flow statement of parent company, consolidated statement ofchanges in owners' equity and statement of changes in owners' equity of parent company for the year2019 and notes to these financial statements.In our opinion, the attached financial statements of the Company have been prepared inaccordance with the provisions of the Accounting Standards for Business Enterprises and give a trueand fair view of the consolidated financial position and financial position of parent company of theCompany as of December 31, 2019 and of the consolidated financial performance and cash flows andfinancial performance and cash flows of parent company for the year 2019 on all significant aspects.
II. Basis for opinionWe conducted our audit in accordance with the Auditing Standards for Chinese Certified PublicAccountants. The “Responsibility of CPAs for audit of the financial statements” in the Audit Report furtherstates our responsibility under these Standards. We are independent of the Company and fulfill otherresponsibilities in terms of professional ethics according to the Code of Professional Ethics for ChineseCPAs. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
III. Key audit mattersThe key audit matters are those that we consider most important to audit the financial statements ofthe current period in our professional judgment. The response to these matters is based on the audit ofthe financial statements as a whole and the formation of audit opinion. We do not express our opinionson these matters separately. We have identified the following matters as key audit matters during theaudit:
Key audit matters Addressed in the context of our audit(I) Existence and integrity of cash and cash equivalentsRefer to notes to financial statements "V
. | With respect of cash and cash equivalents, we conducted the |
equivalents".
As of December 31, 2019, the balance of cash and cash equivalents of the |
Company was RMB 63,238,825,700
accounts, therefore we co
nsider the existence and integrity of cash and cash |
equivalents as a key audit matter.
following audit procedures:
management of cash and cash equivalents;
2. Obtain list of bank accounts opened, and check the books of the Company against the bank account information and integrity of the |
bank accounts;
confirmatio
n of the bank accounts, and control the process of |
external confirmation;
information.
5. Obtain credit report of the ent
erprise and check whether the cash |
and cash equivalents are under mortgage, charge or frozen;
total. Check the deposit and l
oan businesses of Sichuan Yibin |
Wuliangye Group Finance Co., Ltd.
integrity of cash and cash equivalents.(II) Integrity of disclosure of association relationships and related transactions
We believe that the above audit procedures can support themanagement of the Company in determining the existence and
Refer to notes to financial statement"VIII. Related parties and related
transactions".
As of December 31, 2019, the Company had different categories of related |
transactions with related parties in lar
therefore w
e consider integrity of disclosure of association relationships and related transactions as a key audit |
matter.
we conducted the following audit procedures:
1. Understand the
procedures of the Company for related party identification, evaluate and test the internal control of the Company for identifying and disclosing association relationships and related |
transactions;
2. Obtain the list of association relationships provided by
disclosed;
3. Obtain the amount of related transactions and
details of the balance provided by the management and check against the |
financial records;
external confirmation;
5. Obtain the resolutions of the board of directors and those of the |
general meet
related transactions provided by the management;
6. Obtain statement of the management about integrity of the |
association relationships and related transactions;
Standards for Business Enterprises.
We believe that the above audit procedures can support the |
management
integrity of association relationship and related transactions.
IV. Other informationThe management of the Company is responsible for other information. Such information includesthe information covered in the Annual Report 2019, but excluding the financial statements and our auditreport.
Our audit opinion on the financial statements does not cover other information and we do notexpress any form of verification conclusions on other information.Combined with our audit of the financial statements, it’s our responsibility to read other information.In this process, we shall consider whether there is material inconsistency of other information with thefinancial statements or the situation understood by us in the audit process or material misstatement.Based on the work that has been conducted by us, if we determine that other information containsmaterial misstatements, we should report the fact. We have nothing to report in this regard.V. Responsibility of management and governance for the financial statementsThe management of the Company is responsible for preparing the financial statements inaccordance with the provisions of the Accounting Standards for Business Enterprises and giving a trueand fair view; designing, implementing and maintaining necessary internal control, so that the financialstatements are free from material misstatement due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating thegoing-concern ability of the Company, disclosing the matters related to the going-concern (if applicable)and using the going-concern assumption, unless the management plans to liquidate the Company orstop operation or has no other realistic choices.
The governance is responsible for supervising the financial reporting process of the Company.
VI. Responsibility of CPAs for audit of the financial statements
Our goal is to obtain reasonable assurance as to whether there is no material misstatement causedby fraud or error in the financial statements as a whole, and to issue an audit report containing auditopinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with auditing standards will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud mayinvolve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4)Draw a conclusion about the appropriateness of the going-concern assumption used by the
management. Meanwhile, draw a conclusion about the major uncertainty of the matters orcircumstances possibly resulting in major concerns about the going-concern ability of the Companyaccording to the audit evidence obtained. If we conclude that a material uncertainty exists, the auditingstandards require us to draw attention to users of the financial statements in the Audit Report to therelated disclosures in the financial statements or, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of the Audit Report.However, future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.We communicate with governance layer regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant defects in internal control thatwe identify during our audit.We also provide the governance layer with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.From the matters communicated with the governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter shouldnot be communicated in our report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA Chinese Certified Public Accountant: Li Min(LLP) (Project Partner)Chengdu, China Chinese Certified Public Accountant: Liu Jun
April 24, 2020
II. Financial StatementsUnit of notes to financial statements: RMB
1. Consolidated Balance Sheet
Prepared by: Wuliangye Yibin Co., Ltd. December 31, 2019 Unit: RMB
Item December 31, 2019 December 31, 2018Current assets:
Cash and cash equivalents 63,238,825,723.79
48,960,048,897.95
Settlement reserves
Capital lent
Trading financial assets
Financial assets at fair value throughprofit or loss
Derivative financial assets
Notes receivable 14,643,149,595.72
16,134,641,950.86
Accounts receivable 134,449,693.03
127,331,336.97
Accounts receivable financing 3,450,166,659.06
Prepayments 231,909,140.09
220,916,820.64
Premium receivable
Reinsurance receivables
Contract reserve of reinsurance
Other receivables 1,248,644,572.40
871,770,375.85
Including: Interest receivable 1,215,275,214.91
840,888,887.75
Dividends receivable
Purchase restituted finance asset
Inventory 13,679,619,615.41
11,795,461,088.43
Contract asset
Assets held for sale
Non-current assets due within oneyear
Other current assets
Total current assets 96,626,764,999.50
78,110,170,470.70
Non-current assets:
Loans and advances
Debt investment
Available-for-sale financial assets
1,200,000.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 1,021,778,731.59
919,477,978.54
Other equity instrument investment
Other non-current financial assets 1,200,000.00
Investment properties
Fixed assets 6,108,745,912.72
5,262,163,428.02
Construction in progress 812,428,248.30
351,993,452.86
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 410,155,227.81
412,650,156.71
Development expenditures
Goodwill 1,621,619.53
1,621,619.53
Long-term deferred expenses 91,601,331.96
111,897,668.36
Deferred income tax assets 1,157,391,979.00
871,859,716.03
Other non-current assets 165,284,283.25
51,231,242.34
Total non-current assets 9,770,207,334.16
7,984,095,262.39
Total assets 106,396,972,333.66
86,094,265,733.09
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liabilities
Financial liabilities at fair valuethrough profit or loss
Derivative financial liabilities
Notes payable 419,485,425.61
413,918,369.11
Accounts payable 3,257,672,975.56
3,152,374,810.72
Accounts received in advance 12,530,706,854.77
6,706,735,898.48
Contract liability
Selling financial asset of repurchase
Absorbing deposit and interbankdeposit
Security trading of agency
Security sales of agency
Payroll payable 3,594,886,729.81
2,769,295,510.19
Tax payable 7,939,166,588.84
5,080,135,497.74
Other payables 2,292,680,733.51
2,585,355,687.52
Including: Interest payable
Dividend payable
Commission charge and commissionpayable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within oneyear
Other current liabilities
Total current liabilities 30,034,599,308.10
20,707,815,773.76
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 266,325,368.40
267,010,618.22
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 266,325,368.40
267,010,618.22
Total liabilities 30,300,924,676.50
20,974,826,391.98
Owner’s equity:
Capital stock 3,881,608,005.00
3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15
2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 16,092,197,023.01
13,120,411,030.42
Provision for general risk
Undistributed profit 51,634,248,548.06
43,802,603,958.99
Total owner's equity attributable toparent company
74,290,700,662.22
63,487,270,080.56
Minority equity 1,805,346,994.94
1,632,169,260.55
Total owners' equity 76,096,047,657.16
65,119,439,341.11
Total liabilities and owners' equity 106,396,972,333.66
86,094,265,733.09
Legal representative: Zeng Congqin Responsible person for accounting: Luo Wei Responsible person ofaccounting firm: Luo Jun
2. Balance Sheet of Parent Company
Unit: RMBItem December 31, 2019 December 31, 2018Current assets:
Cash and cash equivalents 28,257,367,404.51
20,666,489,987.76
Trading financial assets
Financial assets at fair value throughprofit or loss
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 80,520,520.72
73,237,561.54
Other receivables 10,126,706,853.03
12,135,135,681.28
Including: Interest receivable 570,078,014.35
383,190,672.91
Dividends receivable 654,791,389.27
342,607,430.63
Inventory
Contract asset
Assets held for sale
Non-current assets due within oneyear
Other current assets
Total current assets 38,464,594,778.26
32,874,863,230.58
Non-current assets:
Debt investment
Available-for-sale financial assets
1,200,000.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 10,609,783,624.61
10,517,324,976.74
Other equity instrument investment
Other non-current financial assets 1,200,000.00
Investment properties
Fixed assets 100,266,366.93
107,626,051.93
Construction in progress 100,358,221.33
99,478,221.33
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 39,222,336.12
40,573,281.24
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 2,202,432.10
100,889.03
Other non-current assets
Total non-current assets 10,853,032,981.09
10,766,303,420.27
Total assets 49,317,627,759.35
43,641,166,650.85
Current liabilities:
Short-term loans
Trading financial liabilities
Financial liabilities at fair valuethrough profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 418,136.00
175,000.00
Accounts received in advance
Contract liability
Payroll payable 8,811,734.27
1,267,974.86
Tax payable 30,732,337.42
36,702,690.98
Other payables 285,450,874.79
332,300,571.41
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within oneyear
Other current liabilities
Total current liabilities 325,413,082.48
370,446,237.25
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 1,000,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,000,000.00
Total liabilities 326,413,082.48
370,446,237.25
Owner’s equity:
Capital stock 3,881,608,005.00
3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15
2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 7,884,654,620.01
6,652,731,832.83
Undistributed profit 34,542,304,965.71
30,053,733,489.62
Total owners' equity 48,991,214,676.87
43,270,720,413.60
Total liabilities and owners' equity 49,317,627,759.35
43,641,166,650.85
3. Consolidated Income Statement
Unit: RMBItem Year 2019 Year 2018I. Total operating revenue 50,118,105,877.14
40,030,189,599.87
Including: Operating revenue 50,118,105,877.14
40,030,189,599.87
Interest revenue
Premium earned
Commission charge and commissionrevenue
II. Total operating cost 26,123,144,090.12
21,513,284,355.90
Including: Cost of sales 12,802,259,947.34
10,486,782,934.27
Interest expenditure
Commission charge and commissionexpense
Surrender value
Net amount of expense ofcompensation
Net provision for insurance contracts
Bonus insurance expense
Reinsurance expense
Tax and surcharges 6,984,343,102.55
5,908,497,298.57
Selling expenses 4,985,579,336.77
3,778,433,675.01
Administrative expenses 2,655,347,148.09
2,340,498,705.44
Research and development expense 126,360,421.11
84,082,506.26
Financial expenses -1,430,745,865.74
-1,085,010,763.65
Including: Interest expense
Interest revenue 1,416,398,912.72
1,081,572,031.13
Plus: Other incomes 159,712,241.81
106,229,000.81
Investment income (loss indicated with“-”)
92,500,753.05
100,864,555.27
Including: Investment income fromassociates and joint-ventures
92,500,753.05
100,864,555.05
Income on de-recognition of financialassets measured at amortized cost
Exchange income (loss indicated with“-”)
Net exposure hedging income (lossindicated with “-”)
Income from changes of fair value (lossindicated with “-”)
Credit impairment loss (loss indicatedwith “-”)
-1,133,580.27
Asset impairment loss (loss indicatedwith “-”)
-3,020,763.91
-10,879,427.89
Gain from disposal of assets (lossindicated with “-”)
2,779,400.03
5,273,892.02
III. Operating profit (loss indicated with“-”)
24,245,799,837.73
18,718,393,264.18
Plus: Non-operating revenue 29,890,272.65
43,803,121.66
Less: Non-operating expenditure 169,678,066.85
155,373,729.64
IV. Total profit (total loss indicated with“-”)
24,106,012,043.53
18,606,822,656.20
Less: Income tax expenses 5,877,756,764.92
4,568,172,529.72
V. Net profit (net loss indicated with “-”) 18,228,255,278.61
14,038,650,126.48
(I) Classification by business continuity
1. Net profit from continuing operations
(net loss indicated with “-”)
18,228,255,278.61
14,038,650,126.48
2. Net profit from discontinued
operations (net loss indicated with “-”)
(II) Classification by ownership
1. Net profit attributable to owner of
parent company
17,402,164,190.16
13,384,246,683.60
2. Minority interest income 826,091,088.45
654,403,442.88
VI. Net amount of other comprehensiveincome after tax
Net amount of other comprehensiveincome after tax attributable to owner ofparent company
(I) Other comprehensive income thatcannot reclassified into the profit andloss
1. Changes arising from the
remeasurement of defined benefit plan
2. Other comprehensive income that
cannot be reclassified into profit or lossunder the equity method
3. Changes in fair value of other equity
instrument investment
4. Changes in fair value of corporate
credit risk
5. Others
(II) Other comprehensive income thatwill be reclassified into the profit andloss
1. Other comprehensive income that
can be reclassified into profit or lossunder the equity method
2. Changes in fair value of other debt
investments
3. Changes in fair value through profit
and loss of available-for-sale financialassets
4. Amount of financial assets
reclassified into other comprehensiveincome
5. Held-to-maturity investment
reclassified into available-for-salefinancial assets
6. Credit impairment provision for other
debt investments
7. Cash flow reserve
8. Balance arising from the translation of |
foreign currency financial statements
9. Others
Net amount of other comprehensiveincome after tax attributable to minorityshareholders
VII. Total comprehensive income 18,228,255,278.61
14,038,650,126.48
Total comprehensive incomeattributable to owner of parent company
17,402,164,190.16
13,384,246,683.60
Total comprehensive incomeattributable to minority shareholders
826,091,088.45
654,403,442.88
VIII. Earnings per share:
(I) Basic earnings per share 4.483
3.474
(II) Diluted earnings per share 4.483
3.474
Net profit realized by the combined party before the consolidation in case of business combination under the same controlduring the reporting period: RMB 0.00, and the net profit realized by the combined party in previous period: RMB 0.00.Legal representative: Zeng Congqin Responsible person for accounting: Luo Wei Responsible personof accounting firm: Luo Jun
4. Income Statement of Parent Company
Unit: RMBItem Year 2019 Year 2018I. Operating revenue 557,807.81
1,197,774.65
Less: Cost of sales 0.00
0.00
Tax and surcharges 530,756.77
76,818.28
Selling expenses
Administrative expenses 112,675,199.88
93,588,881.24
Research and developmentexpense
42,509,849.28
20,665,781.90
Financial expenses -747,727,624.11
-554,311,669.26
Including: Interest expense
Interest revenue 747,767,664.67
554,545,450.89
Plus: Other incomes 2,672,800.00
12,442,869.40
Investment income (loss indicatedwith “-”)
11,979,399,612.91
8,596,460,952.96
Including: Investment income fromassociates and joint-ventures
92,458,647.87
100,740,183.08
Income on de-recognition offinancial assets measured atamortized cost (loss indicated with“-”)
Net exposure hedging income (lossindicated with “-”)
Income from changes of fair value(loss indicated with “-”)
Credit impairment loss (lossindicated with “-”)
-506,172.26
Asset impairment loss (lossindicated with “-”)
-143,797.84
Gain from disposal of assets (lossindicated with “-”)
II. Operating profit (loss indicatedwith “-”)
12,574,135,866.64
9,049,937,987.01
Plus: Non-operating revenue 670,614.65
604,043.30
Less: Non-operating expenditure 147,551,770.23
125,999,155.37
III. Total profit (total loss indicatedwith “-”)
12,427,254,711.06
8,924,542,874.94
Less: Income tax expenses 108,026,839.29
83,515,112.50
IV. Net profit (net loss indicated with“-”)
12,319,227,871.77
8,841,027,762.44
(I) Net profit from continuingoperations (net loss indicated with“-”)
12,319,227,871.77
8,841,027,762.44
(II) Net profit from discontinuedoperations (net loss indicated with“-”)
V. Net amount of othercomprehensive income after tax
(I) Other comprehensive
loss
income that cannot reclassified into the profit and |
1. Changes arising from the
remeasurement of defined benefitplan
2. Other comprehensive income that |
cannot be reclassified into profit orloss under the equity method
3. Changes in fair value of other
equity instrument investment
4. Changes in fair value of corporate |
credit risk
5. Others
(II) Other comprehensive income
and loss
that will be reclassified into the profit | ||
1. Other comprehensive income that |
can be reclassified into profit or lossunder the equity method
2. Changes in fair value of other
debt investments
3. Changes in fair value through
profit and loss of available-for-salefinancial assets
4. Amount of financial assets
reclassified into othercomprehensive income
5. Held-to-maturity investment
reclassified into available-for-salefinancial assets
6. Credit impairment provision for
other debt investments
7. Cash flow reserve
8. Balance arising from the
translation of foreign currencyfinancial statements
9. Others
VI. Total comprehensive income 12,319,227,871.77
8,841,027,762.44
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMBItem Year 2019 Year 2018I. Cash flows from operatingactivities:
Cash received from the sales ofgoods and the rendering of services
63,111,448,367.92
46,031,388,431.46
Net increase in customer depositand interbank deposit
Net increase in loan from centralbank
Net increase in capital borrowed
Cash received from originalinsurance contract fee
Net cash received from reinsurancebusiness
Insured savings and net increase ofinvestment
Cash received from interest,commission charge and commission
Net increase of capital borrowed
Net increase of returned businesscapital
Net cash received from securitiestrading brokerage
Receipts of tax refunds 29,278,082.30
17,688,897.86
Other cash received relating tooperating activities
1,463,776,630.55
1,237,237,895.28
Sub-total of cash inflows fromoperating activities
64,604,503,080.77
47,286,315,224.60
Cash payments for goodspurchased and services received
16,858,330,333.04
13,866,014,356.07
Net increase of customer loans andadvances
Net increase of deposits in centralbank and interbank
Cash paid for original insurancecontract compensation
Net increase in capital lent
Cash paid for interest, commissioncharge and commission
Cash paid for policy dividend
Cash paid to employee and foremployee
5,633,645,226.36
4,824,010,398.00
Payments of all types of taxes 15,634,936,299.82
13,308,818,523.69
Other cash paid relating to operating |
activities
3,365,519,180.89
2,970,112,911.94
Sub-total of cash outflows fromoperating activities
41,492,431,040.11
34,968,956,189.70
Net cash flows from operatingactivities
23,112,072,040.66
12,317,359,034.90
II. Cash flows from investingactivities:
Cash received from disposals andwithdraw on investment
8,000,000.00
Cash received from investmentincome
36,240,580.82
Net cash received from disposals offixed assets, intangible assets andother long-term assets
92,050,811.98
5,584,385.41
Net cash received from disposal ofsubsidiaries and other businessunits
Other cash received relating toinvesting activities
Sub-total of cash inflows frominvesting activities
92,050,811.98
49,824,966.23
Cash payments to acquire andconstruct fixed assets, intangibleassets and other long-term assets
1,698,655,125.66
381,381,461.74
Cash payments to acquireinvestments
9,800,000.00
Net increase of mortgaged loans
Net cash payments for acquisitionsof subsidiaries and other businessunits
Other cash payments relating toinvesting activities
Sub-total of cash outflows frominvesting activities
1,708,455,125.66
381,381,461.74
Net cash flows from investingactivities
-1,616,404,313.68
-331,556,495.51
III. Cash flows from financingactivities:
Cash received from investors inmaking investment in the enterprise
1,813,717,926.36
Including: Cash received fromsubsidiaries’ absorption of minorityshareholders’ investment
980,000.00
Cash received from borrowings
Other cash received relating tofinancing activities
Sub-total of cash inflows fromfinancing activities
1,813,717,926.36
Cash repayments of amountsborrowed
Cash paid for distribution ofdividends or profits, or cashpayments for interests
7,251,646,962.56
5,409,549,048.53
Including: Dividends and profits paid |
by subsidiaries to minorityshareholders
652,913,354.06
363,458,642.03
Other cash payments relating tofinancing activities
22,092,404.60
Sub-total of cash outflows fromfinancing activities
7,251,646,962.56
5,431,641,453.13
Net cash flows from financingactivities
-7,251,646,962.56
-3,617,923,526.77
IV. Effect of foreign exchange ratechanges on cash and cashequivalents
63,661.42
366,479.55
V. Net increase in cash and cashequivalents
14,244,084,425.84
8,368,245,492.17
Plus: Beginning balance of cash and |
cash equivalents
48,960,048,897.95
40,591,803,405.78
VI. Ending balance of cash and cash |
equivalents
63,204,133,323.79
48,960,048,897.95
6. Cash Flow Statement of Parent Company
Unit: RMBItem Year 2019 Year 2018I. Cash flows from operatingactivities:
Cash received from the sales ofgoods and the rendering of services
592,800.00
1,338,997.84
Receipts of tax refunds
Other cash received relating tooperating activities
3,324,064,952.46
587,350,043.73
Sub-total of cash inflows fromoperating activities
3,324,657,752.46
588,689,041.57
Cash payments for goodspurchased and services received
Cash paid to employee and foremployee
83,616,698.28
65,057,183.60
Payments of all types of taxes 113,260,133.25
62,360,501.58
Other cash paid relating to
activities
342,415,572.20
operating |
483,672,991.03
Sub-total of cash outflows fromoperating activities
539,292,403.73
611,090,676.21
Net cash flows from operatingactivities
2,785,365,348.73
-22,401,634.64
II. Cash flows from investingactivities:
Cash received from disposals andwithdraw on investment
Cash received from investmentincome
11,574,757,006.40
8,633,589,787.69
Net cash received from disposals offixed assets, intangible assets andother long-term assets
5,513.55
2,589.45
Net cash received from disposal ofsubsidiaries and other businessunits
Other cash received relating toinvesting activities
Sub-total of cash inflows frominvesting activities
11,574,762,519.95
8,633,592,377.14
Cash payments to acquire andconstruct fixed assets, intangibleassets and other long-term assets
1,043,835.63
5,091,254.39
Cash payments to acquireinvestments
169,473,007.80
545,826,992.20
Net cash payments for acquisitionsof subsidiaries and other businessunits
Other cash payments relating toinvesting activities
Sub-total of cash outflows frominvesting activities
170,516,843.43
550,918,246.59
Net cash flows from investingactivities
11,404,245,676.52
8,082,674,130.55
III. Cash flows from financingactivities:
Cash received from investors inmaking investment in the enterprise
1,812,737,926.36
Cash received from borrowings
Other cash received relating tofinancing activities
Sub-total of cash inflows fromfinancing activities
1,812,737,926.36
Cash repayments of amountsborrowed
Cash paid for distribution ofdividends or profits, or cashpayments for interests
6,598,733,608.50
5,046,090,406.50
Other cash payments relating tofinancing activities
22,092,404.60
Sub-total of cash outflows fromfinancing activities
6,598,733,608.50
5,068,182,811.10
Net cash flows from financingactivities
-6,598,733,608.50
-3,255,444,884.74
IV. Effect of foreign exchange ratechanges on cash and cashequivalents
V. Net increase in cash and cashequivalents
7,590,877,416.75
4,804,827,611.17
Plus: Beginning balance of cash and |
cash equivalents
20,666,489,987.76
15,861,662,376.59
VI. Ending balance of cash and cash |
equivalents
28,257,367,404.51
20,666,489,987.76
7. Consolidated Statement of Changes in Owners' Equity
Amount of current period
Unit: RMBItem
Year 2019 | |
Owner’s equity attributable to parent company |
Minority equity Total owners' equityCapital stock
Capital reserve
Other equity instruments | Less: | |
Treasury
stock | Other |
comprehen
Specialreserves
Surplus reserve
Provision forgeneral risk
Undistributed profit Others Sub-total
sive incomePreferred
share
Preferred share | Perpetual bond |
Others
3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
I. Ending balance of previous period |
Plus: Changes in accounting policy |
Correction of prior errors | |||||||||||||||
Business combination |
involving enterprises under
the same control | |||||||||||||||
Others | |||||||||||||||
III. Beginning balance of current year |
3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
current period (decrease
indicated with “-”) |
2,971,785,992.59 7,831,644,589.07 10,803,430,581.66 173,177,734.39 10,976,608,316.05
17,402,164,190.16 17,402,164,190.16 826,091,088.45 18,228,255,278.61
(I) Total comprehensive income |
(II) Capital paid in and reduced by owners |
1. Common stocks invested by owners |
2. Capital invested by other equity instrument holders |
payments recognized in
owners’equity |
4. Others | |||||||||||||||
(III) Profit distribution | 2,971,785,992.59 | -9,570,519,601.09 | -6,598,733,608.50 | -652,913,354.06 | -7,251,646,962.56 | ||||||||||
1. Withdrawal of surplus reserve |
2,971,785,992.59 -2,971,785,992.59
2. Withdrawal of provision for general risk |
3. Distribution to owners (or shareholders) |
-6,598,733,608.50 -6,598,733,608.50 -652,913,354.06 -7,251,646,962.56
4. Others | |||||||||||||||
(IV) Internal transfer of owners' equity |
paid-in capital (or capital
stock) |
paid-in capital (or capital
stock) |
3. Recovery of losses by surplus reserve |
4. Carry forward retained |
earnings in variation of
defined benefit plan |
5. Carry forward retained |
earnings of other
comprehensive income | |||||||||||||||
6. Others | |||||||||||||||
(V) Special reserves | |||||||||||||||
1. Withdrawal of current period |
2. Use of current period | |||||||||||||||
(I) Others | |||||||||||||||
IV. Ending balance of current period |
3,881,608,005.00 2,682,647,086.15 16,092,197,023.01 51,634,248,548.06 74,290,700,662.22 1,805,346,994.94 76,096,047,657.16
Amount of previous period
Unit: RMBItem
Year 2018 | |
Owner’s equity attributable to parent company |
Minority equity Total owners' equityCapital stock
Capital reserve
Less:
Treasury
stock
Other equity instruments | Other | |
comprehensive
Specialreserves
Surplus reserve
Provision forgeneral risk
Undistributed profit Others Sub-totalPreferred
share
Perpetual
bond
Others
income | ||
I. Ending balance of previous period |
3,795,966,720.00 953,255,757.17 10,909,576,690.57 37,675,282,021.74 53,334,081,189.48 1,340,244,459.70 54,674,325,649.18
Plus: Changes in accounting policy | |||||||||||||||
Correction of prior errors | |||||||||||||||
Business combination involving |
enterprises under the same
control | |||||||||||||||
Others | |||||||||||||||
III. Beginning balance of current year |
3,795,966,720.00 953,255,757.17 10,909,576,690.57 37,675,282,021.74 53,334,081,189.48 1,340,244,459.70 54,674,325,649.18
current period (decrease
indicated with “-”) |
85,641,285.00 1,729,391,328.98 2,210,834,339.85 6,127,321,937.25 10,153,188,891.08 291,924,800.85 10,445,113,691.93
(I) Total comprehensive income | 13,384,246,683.60 | 13,384,246,683.60 | 654,403,442.88 | 14,038,650,126.48 | |||||||||||
(II) Capital paid in and reduced by owners |
85,641,285.00 1,729,391,328.98 1,815,032,613.98 980,000.00 1,816,012,613.98
85,641,285.00 1,729,391,328.98 1,815,032,613.98 980,000.00 1,816,012,613.98
1. Common stocks invested by owners |
2. Capital invested by other equity instrument holders |
payments recognized in owners'
equity |
4. Others | |||||||||||||||
(III) Profit distribution | 2,210,834,339.85 | -7,256,924,746.35 | -5,046,090,406.50 | -363,458,642.03 | -5,409,549,048.53 | ||||||||||
1. Withdrawal of surplus reserve | 2,210,834,339.85 | -2,210,834,339.85 | |||||||||||||
2. Withdrawal of provision for general risk |
-5,046,090,406.50 -5,046,090,406.50 -363,458,642.03 -5,409,549,048.53
3. Distribution to owners (or shareholders) | |||||||||||||||
4. Others | |||||||||||||||
(IV) Internal transfer of owners' equity |
1. Capital reserve transfer to paid-in capital (or capital stock) |
2. Surplus reserve transfer to paid-in capital (or capital stock) |
3. Recovery of losses by surplus reserve |
4. Carry forward retained |
earnings in variation of defined
benefit plan |
5. Carry forward retained |
earnings of other
comprehensive income | |||||||||||||||
6. Others | |||||||||||||||
(V) Special reserves | |||||||||||||||
1. Withdrawal of current period | |||||||||||||||
2. Use of current period | |||||||||||||||
(I) Others | |||||||||||||||
IV. Ending balance of current period |
3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
8. Statement of Changes in Owners' equity of Parent Company
Amount of current period
Unit: RMBItem
Year 2019Capital stock
Other equity instruments
Capital reserve
Less:
Treasury
stock
Othercomprehensive
income
Specialreserves
Surplus reserve Undistributed profit Others Total owners' equityPreferred share
Perpetual
bond
OthersI. Ending balance of previous period 3,881,608,005.00
2,682,647,086.15
6,652,731,832.83
30,053,733,489.62
43,270,720,413.60
Plus: Changes in accounting policy
Correction of prior errors
Others
III. Beginning balance of current year 3,881,608,005.00
2,682,647,086.15
6,652,731,832.83
30,053,733,489.62
43,270,720,413.60
III. Increase/decrease in the current period(decrease indicated with “-”)
1,231,922,787.18
4,488,571,476.09
5,720,494,263.27
(I) Total comprehensive income
12,319,227,871.77
12,319,227,871.77
(II) Capital paid in and reduced by owners
1. Common stocks invested by owners
2. Capital invested by other equity
instrument holders
3. Amount of share-based payments
recognized in owners’equity
4. Others
(III) Profit distribution
1,231,922,787.18
-7,830,656,395.68
-6,598,733,608.50
1. Withdrawal of surplus reserve
1,231,922,787.18
-1,231,922,787.18
2. Distribution to owners (or shareholders)
-6,598,733,608.50
-6,598,733,608.50
3. Others
(IV) Internal transfer of owners' equity
1. Capital reserve transfer to paid-in capital
(or capital stock)
2. Surplus reserve transfer to paid-
(or capital stock)
in capital |
3. Recovery of losses by surplus reserve
4. Carry forward retained earnings in
variation of defined benefit plan
5. Carry forward retained earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current period
2. Use of current period
(I) Others
IV. Ending balance of current period 3,881,608,005.00
2,682,647,086.15
7,884,654,620.01
34,542,304,965.71
48,991,214,676.87
Amount of previous period
Unit: RMBItem
Year 2018Capital stock
Other equity instruments
Capital reserve
Less:
Treasury
stock
Othercomprehensive
income
Specialreserves
Surplus reserve Undistributed profit Others Total owners' equityPreferredshare
Perpetual bond OthersI. Ending balance of previous period 3,795,966,720.00
953,255,757.17
5,768,629,056.59
27,142,898,909.92
37,660,750,443.68
Plus: Changes in accounting policy
Correction of prior errors
Others
III. Beginning balance of current year 3,795,966,720.00
953,255,757.17
5,768,629,056.59
27,142,898,909.92
37,660,750,443.68
III. Increase/decrease in the current period(decrease indicated with “-”)
85,641,285.00
1,729,391,328.98
884,102,776.24
2,910,834,579.70
5,609,969,969.92
(I) Total comprehensive income
8,841,027,762.44
8,841,027,762.44
(II) Capital paid in and reduced by owners 85,641,285.00
1,729,391,328.98
1,815,032,613.98
1. Common stocks invested by owners 85,641,285.00
1,729,391,328.98
1,815,032,613.98
2. Capital invested by other equity
instrument holders
3. Amount of share-based payments
recognized in owners' equity
4. Others
(III) Profit distribution
884,102,776.24
-5,930,193,182.74
-5,046,090,406.50
1. Withdrawal of surplus reserve
884,102,776.24
-884,102,776.24
2. Distribution to owners (or shareholders)
-5,046,090,406.50
-5,046,090,406.50
3. Others
(IV) Internal transfer of owners' equity
1. Capital reserve transfer to paid-
(or capital stock)
in capital |
2. Surplus reserve transfer to paid-
(or capital stock)
in capital |
3. Recovery of losses by surplus reserve
4. Carry forward retained earnings in
variation of defined benefit plan
5. Carry forward retained earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current period
2. Use of current period
(I) Others
IV. Ending balance of current period 3,881,608,005.00
2,682,647,086.15
6,652,731,832.83
30,053,733,489.62
43,270,720,413.60
III. Company Profile
1. Company history
The Company is a company limited by shares established by Sichuan Yibin Wuliangye LiquorFactory through fund raising on August 19, 1997 with the approval of Document CFH (1997) No.295issued by Sichuan Provincial People's Government. The Company is mainly engaged in the productionand sales of "Wuliangye" and its series liquors, with a registered capital of RMB 3,795.96672 million andregistered address at No.150, West Minjiang Road, Yibin, Sichuan.The Company issued 80 million common shares (in RMB) on-line by fixed price offering atShenzhen Stock Exchange on April 27, 1998. According to the resolution of the extraordinary generalmeeting in September 1999, the Company, based on the total capital stock of 320 million shares on June30, 1999, transferred capital reserve to increase capital stock, increasing 5 shares for every 10 sharesand the total capital stock after the conversion was changed to 480 million shares. The Company placed
31.2 million common shares (in RMB) to the original shareholders as approved by the Document ZJGS
(2001) No.6 issued by the China Securities Regulatory Commission. The total capital stock after theplacement was 511.2 million shares. In August 2001, the Company implemented the interim distributionplan 2001 and issued 4 bonus shares and increased 3 shares for every 10 shares by transferring capitalreserve to capital stock, with 357.84 million bonus shares and shares transferred from capital reserve intotal. The total capital stock after the issuance and translation was 869.04 million shares. In April 2002,the Company implemented the distribution plan 2001 and issued 1 bonus shares, increased 2 shares bytransferring capital reserve to capital stock, and distributed RMB 0.25 (tax inclusive) in cash for every 10shares, with 260.712 million bonus shares in total. The total capital stock after the issuance andtranslation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan2002 and increased 2 shares for every 10 shares by transferring capital reserve to capital stock for allshareholders, increasing the capital stock by 225.9504 million shares. The total capital stock after thetranslation was 1,355.7024 million shares. In April 2004, the Company implemented the distribution plan2003 and issued 8 bonus shares and increased 2 shares by transferring capital reserve to capital stockfor every 10 shares, with 1,355.7024 million bonus shares in total. The total capital stock after theissuance and translation was 2,711.4048 million shares.
On March 31, 2006, the Company carried out the shareholder structure reform and the shareholderstructure after the reform was as below: 1,817.7869 million shares for state-owned legal person, takingup 67.04% of the total share stock, 493.4 thousand shares for officers, taking up 0.02% of the total sharestock, and 893.1245 million shares for other shareholders, taking up 32.94% of the total share stock.The total capital stock remained 2,711.4048 million shares.
In April 2007, the Company implemented the distribution plan 2006 and issued 4 bonus shares anddistributed RMB 0.60 (tax inclusive) in cash for every 10 shares, with 1,084.5619 million bonus shares intotal. The total capital stock after the issuance and distribution was 3,795.96672 million shares. On April2, 2008, shares for state-owned legal person decreased by 416.5303 million shares due to the exerciseof warrants and became 2,128.3714 million shares, taking up 56.07% of the total capital stock. Othershareholders held 1,667.5954 million shares, taking up 43.93% of the total capital stock.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders ofWuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission ofSichuan Province (CGZCQ (2012) No.88) and the Reply on Free Transfer of Shares Held byState-owned Shareholders of Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision andAdministration Commission of the State Council (GZCQ (2012) No.889), Yibin State-Owned Assets
Operation Co., Ltd. transferred 761,823,343 shares held by it in the Company to Wuliangye Group forfree on October 10, 2012. After this free transfer of shares, Yibin State-Owned Assets Operation Co., Ltd.still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was the first majority shareholderof the Company; Wuliangye Group, holding 20.07% shares of the Company (i.e. 761,823,343 shares),was the second majority shareholder of the Company.According to the Reply on Free Transfer of Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.(YGZW (2016) No.32), the State-owned Assets Supervision and Administration Commission of YibinMunicipal Government transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. toYibin State-Owned Assets Operation Co., Ltd. for free in 2016. This transfer of shares did not involve inthe change of shares held by both parties in the Company, without changing the controlling shareholderand actual controller of the Company.
According to the resolutions of the 11th meeting of the 5th board of directors, annual generalmeeting 2015, the 19th meeting of the 5th board of directors, the 24th meeting of the 5th board ofdirectors, and annual general meeting 2016 of the Company and as approved by the License ZJXK(2017) No.1910 issued by the China Securities Regulatory Commission, the Company issued85,641,285 shares by non-public offering by means of targeted issue. The total capital stock after theissuance was 3,881.608 million shares, including 2128.3714 million shares for state-owned legal person,taking up 54.83% of the total capital stock, and 1,753.2366 million shares for other shareholders, takingup 45.17% of the total capital stock.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage manufacturing industry and its business scope is:
Production and operation of liquor products and relevant auxiliary products (bottle caps, trademarks,logos and packaging products). Its main products are "Wuliangye" and its series liquors.
3. Approval of financial statements
These financial statements have been reviewed and approved by the board of directors of theCompany on April 24, 2020, and will be submitted to the general meeting for review according to theArticles of Association.
4. Scope of consolidated financial statements of current year
As of December 31, 2019, subsidiaries included in the scope of consolidated financial statements ofthe Company were:
Full name of subsidiary Type of subsidiary Tier Shareholding
proportion
Proportion of
votesSichuan Yibin Wuliangye Winery Co., Ltd. Holding subsidiary First-tier
99.99% | 99.99% |
Yibin Wuliangye Liquor Sales Co., Ltd. Holding subsidiary First-tier
95.00% | 95.00% |
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. Holding subsidiary Second-tier
95.00% | 95.00% |
Yibin Wuliangchun Brand Marketing Co., Ltd Holding subsidiary Second-tier
95.00% | 95.00% |
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. Holding subsidiary Second-tier
95.00% | 95.00% |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. Holding subsidiary First-tier
99.95% | 99.95% |
Yibin Jiangjiu Liquor Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. Holding subsidiary First-tier
51.00% | 51.00% |
Sichuan Jinwuxin Technology Co., Ltd. Holding subsidiary Second-tier
51.00% | 51.00% |
Sichuan Jiebeike Environmental Technology Co., Ltd. Holding subsidiary Second-tier
26.01% | 26.01% |
Yibin Changjiangyuan Liquor Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Yibin Changjiangyuan Trade Co., Ltd. Wholly-owned
subsidiary
Second-tier
100.00% | 100.00% |
Yibin Changjiangyuan Brewery Co., Ltd. Wholly-owned
subsidiary
Second-tier
100.00% | 100.00% |
Yibin Wuliangye Organic Agriculture Development Co., Ltd. Wholly-owned
subsidiary
Second-tier
100.00% | 100.00% |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. Holding subsidiary First-tier
90.00% | 90.00% |
Yibin Xianlin Liquor Marketing Co., Ltd. Holding subsidiary Second-tier
90.00% | 90.00% |
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. Holding subsidiary Second-tier
42.30% | 42.30% |
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. Holding subsidiary First-tier
98.53% | 98.53% |
Yibin Xinxing Packaging Co., Ltd. Holding subsidiary Second-tier
98.53% | 98.53% |
Sichuan Yibin Plastic Packaging Materials Company Limited Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Sichuan Yibin Push Group 3D Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Guangdong Foshan Plastic Packaging Materials CompanyLimited
Wholly-owned
subsidiary
Second-tier
100.00% | 100.00% |
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd. Holding subsidiary First-tier
95.00% | 95.00% |
Wuhou Cultural Development Co., Ltd. Holding subsidiary Second-tier
70.30% | 70.30% |
Yibin Zhenwushan Liquor Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Yibin Shiji Liquor Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Yibin Cuipingshan Liquor Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Wuliangye Dashijie (Beijing) Trade Co., Ltd. Holding subsidiary First-tier
95.00% | 95.00% |
Handan Yongbufenli Liquor Co., Ltd. Holding subsidiary First-tier
51.00% | 51.00% |
Linzhang Desheng Wine Trade Co., Ltd. Holding subsidiary Second-tier
51.00% | 51.00% |
Handan Yongbufenli Sales Co., Ltd. Holding subsidiary Second-tier
51.00% | 51.00% |
Huaibin Wubin Consultation Service Co., Ltd. Wholly-owned
subsidiary
First-tier
100.00% | 100.00% |
Wuguchun Jiu Ye Co., Henan. China Holding subsidiary Second-tier
51.03% | 51.03% |
Huaibin Tenglong Trade Co., Ltd. Holding subsidiary Third-tier
51.03% | 51.03% |
Wuguchun Jiu Ye Sales Co., Henan. China Holding subsidiary Third-tier
51.03% | 51.03% |
Sichuan Wuliangye Culture Tourism Development Co., LTD Holding subsidiary First-tier
80.00% | 80.00% |
Sichuan Wuliangye Tourist Agency Co., Ltd. Holding subsidiary Second-tier
80.00% | 80.00% |
Yibin Wuliangye Creart Co., Ltd. Holding subsidiary First-tier
45.00% | 51.00% |
Wuliang NongXiang Series Baijiu Yibin Co., Ltd. Holding subsidiary First-tier
95.00% | 95.00% |
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for thescope of consolidated financial statements of current period and its changes.IV. Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and therecognition and measurement are made at actual transactions and matters in accordance with theAccounting Standards for Business Enterprises-Basic Standards issued by the Ministry of Finance andthe specific Accounting Standards for Business Enterprise, Guidelines for Application of AccountingStandards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprisesand other relevant provisions (hereinafter referred to as “Accounting Standards for Business Enterprise”),combining with the Preparation Rules for Information Disclosure by Companies Offering Securities to thePublic No. 15 - General Provisions on Financial Reports (2014 revision) issued by China SecuritiesRegulatory Commission on this basis.
2. Going concern
The Company has the ability of going concern for at least 12 months from the end of the reportingperiod, and there is no major event affecting the ability of going concern.V. Significant accounting policy and accounting estimates
Specific accounting policy and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimatesformulated by the Company according to the actual production and operation characteristics.
1. Note on compliance with Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of theAccounting Standards for Business Enterprises and truly and completely reflect the Company's financialposition, operating results, cash flows and other relevant information.
2. Accounting period
From January 1 to December 31 of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping currency
RMB is used as the bookkeeping currency and reporting currency of the Company.
5. Accounting methods for business combination involving enterprises under and not under
the same control
(1) Business combination involving enterprises under the same control
The assets and liabilities acquired by the combining party through business combination involvingenterprises under the same control are measured at the share of owner's equity of the combined party inthe book value on consolidated statements of the final controlling party on the combination date. Thedifference between the book value of the net assets obtained by the combining party and the book valueof consideration paid for the combination (or total par value of the shares issued) is adjusted againstcapital stock premium in the capital reserve; if the capital reserve is not sufficient for writing down, theretained earnings shall be adjusted. All the direct costs incurred by the combining party for the businesscombination shall be recorded into current profit/loss when incurred.
(2) Business combination involving enterprises not under the same control
In case of business combination involving enterprises not under the same control, the combinationcosts shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securitiesissued on the date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the same control achieved throughstep-by-step implementation of multiple transactions, related accounting treatment shall be carried outby distinguishing individual financial statements from consolidated financial statements:
① In the individual financial statements, the sum of book value of the equity investment held in the
acquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall betaken as the initial cost of such investment; Where the equity held in the acquiree prior to the date ofacquisition involves other comprehensive income, the other comprehensive income related to suchinvestment (eg. part of the changes in fair value of the available-for-sale financial assets which isrecorded into capital reserve, the same below) shall be transferred to current investment income.
② In the consolidated financial statements, the equity held in the acquiree prior to the date of
acquisition shall be re-measured at the fair value of such equity on the date of acquisition, and thedifference between its fair value and its book value shall be recorded into the current investment income;Where the equity held in the acquiree prior to the date of acquisition involves other comprehensiveincome, the other comprehensive income related to such investment shall be transferred to currentinvestment income on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and otheradministrative expenses incurred by the acquirer for the business combination shall be recorded intocurrent profit/loss; the transaction expenses for issuing equity securities or debt securities by theacquirer as consideration of the combination shall be recorded into the initial recognition amount of theequity securities or debt securities.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the businesscombination involving enterprises not under the same control shall be measured at the fair value on thedate of acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of theacquiree's net identifiable assets obtained in the combination, the difference shall be recognized asgoodwill. Where the combination cost is less than the acquirer's interest in the fair value of the acquiree'snet identifiable assets obtained in the combination, the acquirer shall first recheck the fair values of theacquiree's identifiable assets, liabilities and contingent liabilities obtained in the combination and thecombination cost. Where the combination cost is still less than the acquirer's interest in the fair value ofthe acquiree’s net identifiable assets obtained in the combination, the difference shall be recorded intothe current profit/loss.
6. Methods for preparing consolidated financial statements
(1) Principles for determining the scope of consolidated financial statements:
The scope of consolidated financial statements is determined on the basis of control, including theCompany and the subsidiaries under its control. Control means that the Company has the power overthe invested company, gets variable return by participating in related activities of the invested companyand has the ability to influence the amount of the return by its power over the invested company.
(2) Methods for preparing consolidated financial statements:
The parent company shall prepare the consolidated financial statements based on its financialstatements and those of its subsidiaries and according to other relevant information. The share of thesubsidiaries in current profit/loss attributable to minority equity shall be presented in the consolidatedincome statement as "minority interest income" under the net profit. The share in current comprehensiveincome of the subsidiaries which is attributable to minority equity shall be presented in the consolidatedincome statement as "total comprehensive income attributable to minority shareholders" under the totalother comprehensive income.
For subsidiaries and businesses of the parent company added by business combination involvingenterprises under the same control during the reporting period, the revenue, expenses, and profits ofsuch subsidiaries and businesses from the beginning to the end of the period of business combinationshall be recorded into the consolidated income statement. Cash flows of such subsidiary and businessesfrom the beginning to the end of the year of business combination shall be recorded into theconsolidated cash flow statement, and relevant items of the statements shall be adjusted throughcomparison of the statements, as if the reporting entity after the combination had been existing fromcontrol of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not underthe same control or other means, the revenue, expenses, and profits of such subsidiaries andbusinesses from the date of acquisition to the end of reporting period shall be recorded into theconsolidated income statement. Cash flows of such subsidiary from the date of acquisition to the end ofreporting period shall be recorded into the consolidated cash flow statement.
When the parent company disposes subsidiaries and businesses during the reporting period, therevenue, expenses, and profits of such subsidiary and business from beginning of the reporting period tothe date of disposal shall be recorded into the consolidated income statement; Cash flows of suchsubsidiary and business from beginning of the reporting period to the date of disposal shall be recordedinto the consolidated cash flow statement.
In the consolidated financial statements, when the Company acquires the equity held by theminority shareholders in the subsidiary, the difference between the long-term equity investment obtainedby acquiring minority equity and the share of the net assets to be enjoyed and continuously calculatedfrom the date of acquisition or combination according to the new increase in shareholding proportionshall be adjusted against the capital reserve (capital premium or capital stock premium). If the capitalreserve is not sufficient for writing down, the retained earnings shall be adjusted.
7. Classification of joint venture arrangements and accounting methods for joint operations
Joint venture arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture andowns its relevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat themaccording to relevant Accounting Standards for Business Enterprise:
(1) Recognize assets solely held by the Company, and those jointly owned assets according
to the Company's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities
according to the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint
operation;
(4) Recognize revenue from sales in the joint operation according to the Company's share.
(5) Recognize expenses solely incurred, and those incurred for joint operation according to
the Company's share;Refer to the Note "long-term equity investment" for the accounting policy of the Company forinvestments in joint venture.
8. Recognition criteria for cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at anytime; cash equivalents refer to the short-term (no more than three months since the date of acquisition)and highly liquid investments that are readily convertible into known amounts of cash and that aresubject to an insignificant risk of change in value.
9. Foreign currency transaction and translation of financial statements prepared in foreign
currencies
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping currency at the benchmarkexchange rate (which is generally refers to the middle rate of the current foreign exchange ratepublished by the People's Bank of China, the same below) published by the People's Bank of China onthe transaction date; at the end of the period, foreign currency monetary items shall be translated at theending spot exchange rate; non-monetary items in foreign currency measured at historical cost shall betranslated at the spot exchange rate prevailing on the transaction date; monetary items in foreigncurrency and measured at the fair value shall be translated at the spot exchange rate prevailing on thedate of determining fair value. The difference arising from translation shall be recorded into theconstruction cost of relevant fixed assets if in connection with acquisition and construction of the fixedassets which has not yet reached its intended condition for use; shall be recorded intoadministrativeexpenses if incurring during the preparation period and not in connection with acquisitionand construction of fixed assets; and shall be recorded into current financial expenses if incurring duringthe production and operation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balancesheet date; all items of owners’equity, except for undistributed profit, shall be translated at the spotexchange rate at the time of incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rateon the date of transaction. The translation difference of the foreign currency financial statements arisingfrom the translation shall be separately presented under the owner's equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated atthe spot exchange rate on the date of incurrence of the cash flows.
10. Financial instruments
Financial instruments refer to any contract that gives rise to a financial asset of a party and financialliabilities or equity instruments of other parties.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a partyof the financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) Thecontractual right to charge the cash flow of the financial assets is terminated; 2) The financial assetshave been transferred and the Company has transferred almost all risks and remuneration of thefinancial assets ownership to the transferee; 3) The financial assets have been transferred and theCompany does neither transfer nor retain almost all risks and remuneration of the financial assetsownership but gives up the control over the financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (orpart thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize theassets to be received and the liabilities to be assumed on the date of transaction, or derecognize theassets sold on the date of transaction.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flowcharacteristics of financial assets, the financial assets of the Company are classified into: financialassets measured at the amortized cost; financial assets at fair value through other comprehensiveincome; financial assets at fair value through profit or loss.
1) Initial measurement of financial assets
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets atfair value through profit or loss, relevant transaction expenses shall be directly recorded into currentprofit or loss; for other categories of financial assets, relevant transaction expenses shall be recordedinto the initial recognition amount. For notes receivable and accounts receivable arising from sales ofgoods or provision of service which do not include or consider the compositions of major assets, theCompany shall take the consideration expected to be received as the initial recognition amount.
2) Subsequent measurement of financial assets
① Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtainingcontractual cash flow, and the characteristics of contractual cash flow of such financial assets arebasically the same as basic borrowing arrangement, namely the cash flow arising on a specific date,which are solely payments of principal and interest on the principal amount outstanding. The Companysubsequently measures such financial assets at amortized costs by effective interest method. The gainor loss from their amortization, impairment and derecognition shall be recorded into current profit or loss.
② Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receivingcontractual cash flow as well as selling, and the characteristics of contractual cash flow of such financialassets are basically the same as basic borrowing arrangement. Such financial assets shall be measuredat fair value, with the changes recorded into other comprehensive income, but the impairment loss,exchange gain or loss and interest revenue calculated by effective interest method shall be recorded intocurrent profit or loss. The accumulative gains or losses which are previously recorded into othercomprehensive income shall be transferred out from other comprehensive income and recorded intocurrent profit or loss upon derecognition.
③ Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instrumentsmeasured at amortized cost and debt instruments at fair value through other comprehensive income asfinancial assets at fair value through profit or loss. For eliminating or significantly reducing accountingmismatch upon initial recognition, financial assets may be designated as financial assets at fair valuethrough profit or loss. Such financial assets shall be subsequently measured at fair value with allchanges in fair value recorded into current profit or loss. Only when the Company changes the businessmodel of managing financial assets, shall relevant financial assets being affected be reclassified.
④ Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financialassets at fair value through other comprehensive income upon initial recognition. The Company recordsrelevant dividends income into current profit or loss, with changes in fair value recorded into othercomprehensive income. The accumulative gains or losses which are previously recorded into othercomprehensive income shall be transferred from other comprehensive income to retained earningsinstead of current profit or loss upon derecognition of such financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownershipto the transferee, the financial assets shall be derecognized; if the Company retain almost all risks andremuneration of the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financialassets ownership but gives up the control over the financial assets, such financial assets shall bederecognized and the rights or obligations arising or retained during the transfer shall be separatelyrecognized as assets or liabilities; if control over the financial assets is retained, relevant financial assetsshall be continuously recognized according to the extent of involving in the financial assets transferredand relevant liabilities shall be recognized accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost andfinancial liabilities at fair value through profit or loss upon initial recognition.
1) Initial measurement of financial liabilities
Any financial liability meeting one of the following conditions can be designated upon initialrecognition as the financial liabilities at fair value through profit or loss: ① This designation caneliminate or significantly reduce accounting mismatch; ② According to the risk management orinvestment strategy of the Company as stated in formal written document, the portfolio of financialliabilities or the portfolio of financial assets and financial liabilities is managed and evaluated on the basisof fair value, and reported to the key management on the basis of this inside the Company; ③ Thisfinancial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. Forfinancial liabilities at fair value through profit or loss, relevant transaction expenses shall be directlyrecorded into current profit or loss; relevant transaction expenses of financial liabilities measured atamortized cost shall be recorded into the initial recognition amount.
2) Subsequent measurement of financial liabilities
① Financial liabilities measured at amortized cost: The Company subsequently measures such
financial liabilities at amortized costs by effective interest method. The gain or loss from derecognition oramortization shall be recorded into current profit or loss.
② Financial liabilities at fair value through profit or loss: Including trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair valuethrough profit and loss upon initial recognition.Trading financial liabilities (including derivative instruments belonging to financial liabilities) shall besubsequently measured at fair value (except for those concerning hedge accounting) with changes infair value recorded into current profit or loss.For financial liabilities designated as measured at fair value through profit or loss, changes in fairvalue arising from change of the credit risk of the Company shall be recorded into other comprehensiveincome; accumulative gain or loss previously recorded into other comprehensive income shall betransferred from other comprehensive income to retained earnings. Other changes in fair value shall berecorded into current profit or loss. If previous accounting treatment may cause or expand theaccounting mismatch in profit or loss, all gains or losses of such financial liabilities (including the amountaffected by change in credit risk of the Company) shall be recorded into current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilitiesshall be presented as net amount after offset in the balance sheet: The Company has the legal right tooffset the recognized amount and may exercise such legal right currently; the Company plans to settlewith net amount or realize the financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation inthe active market. For financial instruments without active market, the fair value shall be determined byvaluation technique. The Company shall adopt the valuation technique which is applicable in currentsituation and supported by sufficient available data and other information for valuation. The Companyshall choose inputs which are consistent with the characteristics of assets or liabilities considered by themarket participant in the transaction of relevant assets and liabilities, and give priority to relevantobservable inputs. If it is impossible or impractical to obtain relevant observable inputs, the Companymay use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortizedcost, investments in debt instruments at fair value through other comprehensive income, contract asset,lease receivables, loan commitment and financial guarantee contracts based on the expected creditloss.
The expected credit loss refers to the weighted average credit loss of financial instrumentsweighted by the risk of default. Credit loss refers to the difference between all contract cash flowsdiscounted by the Company at the original effective interest rate and receivable according to the contractand all expected cash flows received, namely the present value of all cash shortage. Among which, thefinancial assets purchased or originated that have suffered from credit impairment shall be discounted atthe effective interest rate of the financial assets after credit adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during theexpected lifetime of financial instruments due to defaults.
12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (ifthe expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after thedate of balance sheet due to possible defaults of financial instruments and is an integral part of thelifetime expected credit loss.
On the date of balance sheet, the Company measured the expected credit loss of financial
instruments at different stages, respectively. If the credit risk of a financial instrument has not increasedsignificantly since the initial recognition, the financial instrument is in the Stage 1, and the Companymeasures the provisions for loss according to the 12-month expected credit loss; if the credit risk of afinancial instrument has increased significantly but the credit impairment has not yet occurred since theinitial recognition, the financial instrument is in the Stage 2, and the Company measures the provisionsfor loss according to the lifetime expected credit losses; if the financial instrument has suffered creditimpairment since the initial recognition, it is in the Stage 3, and the Company measures the provisionsfor loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the date of balance sheet, the Company assumesthat the credit risk has not increased significantly since the initial recognition, and the Companymeasures the provisions for loss according to the 12-month expected credit loss.
For financial instruments with low credit risk in the Stage 1 and Stage 2, the Company shallcalculate the interest revenue according to the book balance and effective interest rate before deductingthe provisions for impairment. For financial instruments in the Stage 3, the Company shall calculate theinterest revenue according to the amortized cost and effective interest rate of the book balance afterwithdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is a major financing, theCompany shall always consider all reasonable and sound information, including prospective information,to estimate expected credit loss of the above accounts receivable individually or in combination andadopt the simplified model of expected credit loss. The Company shall always measure the provisionsfor loss according to the lifetime expected credit loss.
1) Accounts receivable
① If there is objective evidence indicating that impairment has occurred in an account receivable,
impairment test shall be carried out separately on it, such as accounts receivable in dispute withcounterparties or involved in litigation or arbitration; If there is obvious indication that the debtor is likelyto fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debtprovisions shall be made based on the balance between the present value of future cash flows and itsbook value.
② If there is no objective evidence indicating that impairment or the credit loss of a single financial
assets cannot be evaluated at reasonable cost, the accounts receivable shall be classified into severalgroups by characteristics of credit risk. The expected credit loss shall be calculated based on thecombinations. Basis for determining the combinations is as below:
Item Determination basis
Bank acceptance bill group Bank acceptance billCommercial acceptance bills group Commercial acceptance bills
Accounts receivable group Receivables from related parties
Accounts receivable group External customerOther accounts receivable group Receivables from and payables to related partiesOther accounts receivable group Reserve fund, deposits and other receivables with low credit riskOther accounts receivable group Other amounts
For accounts receivable divided into risk groups, the Company, with reference to historicalexperience in credit loss and based on current situation and forecast of future economic situation, shallprepared a comparison table between the aging of accounts receivable and the lifetime expected credit
loss rate to calculate the expected credit losses. For other groups, the Company, with reference tohistorical experience in credit loss and based on current situation and forecast of future economicsituation, shall calculate the expected credit losses according to the exposure at default and the12-month or lifetime expected credit loss rate.
2) Creditors investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected creditloss according to the nature of investment, types of counterparty and risk exposure, exposure at defaultand the 12-month or lifetime expected credit loss rate.The Company shall record the provision or reversal for loss made or recorded into current profit orloss. For investment in debts instruments at fair value through other comprehensive income, theCompany shall adjust other comprehensive income when the impairment loss or gain is recorded intocurrent profit or loss; for financial assets measured at amortized cost, the provision for loss shall offsetthe book value of such financial assets.
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finishedproducts, goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing liquor are measured at actual cost and pricedby weighted average method when sent out; paper, printing ink, and auxiliary materials for producingprinted matters are measured at planned cost when purchased and sent out, with the difference betweenactual cost and planned cost recorded into “materials cost difference”. The difference to be amortized bythe materials sent out shall be calculated by materials cost difference by category at the end of themonth, so as to adjust cost of the materials sent out into actual cost; goods in process,self-manufactured semi-finished products, and finished products are measured at actual cost and pricedby weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of
inventory falling price reserves
On the date of balance sheet, the inventories shall be measured at the lower of cost and netrealizable value. If cost of the inventories is higher than the net realizable value, a provision for inventoryfalling price reserves shall be made and recorded into current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion,estimated selling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidenceobtained and after taking into consideration the purpose for which the inventory is held, and the impact ofpost-balance sheet events. Materials held for use in the production of inventories are measured at cost ifthe net realizable value of the finished products in which they will be incorporated is higher than theircost; decline in the price of materials indicates that the cost of the finished products exceeds their netrealizable value, the materials are measured at net realizable value. The net realizable value of inventoryheld to satisfy sales or service contracts is based on the contract price. If the quantities held by anenterprise is higher than the quantities of inventories specified in sales contracts, the net realizable valueof the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory islower than the cost.
1) Market price of the inventory declines continuously and there is no hope of rising in the
foreseeable future.
2) The cost of products produced by the Company with such raw materials is higher than the
selling price of the product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade of
products, and the market price of the raw material is lower than the book cost.
4) The market price declines gradually due to obsolete goods or service provided by the Company,
or change of market demands due to change of consumer preference.
5) Other circumstances which are sufficient to prove substantial impairment of the inventory.
The Company shall usually determine the falling price reserves of inventories on an item-by-itembasis. For inventories in large amount and low unit price, provision for inventory falling price reservesmay be made by category of the inventories. For item of inventories relating to a product line that isproduced and marketed in the same geographical area, have the same or similar end uses or purposes,and cannot be practically measured separately from other items, provision for inventory falling pricereserves may be made on an aggregate basis.The Company shall determine the net realizable value of inventories on the date of balance sheet.When factors causing written-down of the inventory value disappear, the amount written down shall berecovered and will be reversed from the provided inventory falling price reserves. The amount reversedwill be recorded into current profit or loss.
(4) Inventory system
The inventory system is a perpetual inventory system.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
12. Assets held for sale
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the followingconditions as assets held for sale: ① Assets or disposal groups can be sold immediately under currentconditions based on the practice of selling such assets or disposal groups in similar transactions; ②Sales are highly likely to occur, that is, the Company has already made a resolution on a sale plan andobtained a certain purchase commitment, and the sale is expected to be completed within one year.
Non-current assets or disposal groups specifically obtained by the Company for resale shall beclassified by the Company as held-for-sale on the acquisition date when they meet the stipulatedconditions of “expected to be sold within one year” on the acquisition date, and may well satisfy thecategory of held-for-sale within a short time (which is usually 3 months).
If the transaction between non-related parties fails to be completed within one year due to one ofthe following circumstances which is over the control of the Company, and the Company still promises tosell the non-current assets or disposal groups, the Company should continue to classify the non-currentassets or disposal groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditionsthat lead to extension of the sale. The Company has already acted on these conditions in a timelymanner and it is expected to be able to successfully deal with the conditions that led to the extension ofthe sale within one year after the conditions were set; 2) Due to unusual circumstances, the non-currentassets or disposal groups held-for-sale failed to be sold within one year. In the first year, the Companyhas taken necessary measures for these new conditions and the assets or disposal groups meet theconditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups heldfor sale on the date of balance sheet, if the book value is higher than the fair value minus the net amountof the sale costs, the book value will be written down to the net amount of fair value minus the sale costs.The amount written down will be recognized as asset impairment loss and recorded into current profitand loss, and provision for impairment of assets held for sale will be made.Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall bemeasured at the lower of net amount of initial measurement amount minus sales cost and that of fairvalue minus selling expenses, assuming they were not classified as held-for-sale during initialmeasurement. Except for non-current assets or disposal groups acquired from business combination,the difference arising from taking the net amount of fair value minus sales cost as initial measurementamount of the non-current assets or disposal groups shall be recorded into current profit or loss.For the recognized amount of asset impairment loss of the disposal groups held for sale, the bookvalue of goodwill of the disposal groups shall be offset first, and then the book value of variousnon-current assets in the disposal groups shall be offset by proportions.Non-current assets held for sale or non-current assets in the disposal group are not subject todepreciation or amortization. Interest and other expenses of liabilities in the disposal group held for saleshall still be recognized.
2) Accounting treatment for reversal of asset impairment loss
If the net amount that the fair value of the non-current assets held for sale on the follow-up balancesheet date minus the sale costs increases, the previous written-down amount will be restored andreversed from the asset impairment loss recognized after the assets being classified as held-for-sale.The reversed amount shall be recorded into the current profit or loss. The asset impairment lossrecognized before being classified as held-for-sale shall not be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balancesheet date minus the sale costs increases, the previous written-down amount will be restored andreversed from the asset impairment loss recognized for non-current assets after the assets beingclassified as held-for-sale. The reversed amount will be recorded into the current profit or loss. The bookvalue of goodwill which had been written down and the asset impairment loss recognized before beingclassified as held-for-sale shall not be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which isreserved subsequently, the book value shall be increased according to the proportion of book value ofvarious non-current assets (except for goodwill) in the disposal groups.
3) Accounting treatment for assets no longer classified as held-for-sale and derecognition
When a non-current assets or disposal group ceases to be classified as held-for-sale or anon-current asset is removed out from the disposal group held for sale due to failure in meeting theclassification conditions for the category of held-for-sale, it will be measured by one of the followings,whichever is lower: ① Amount after adjusting the book value before being classified as held for saleaccording to the depreciation, amortization or impairment that would have been recognized under theassumption that it was not classified as held for sale; ② The recoverable amount.
The gain or loss not yet recognized shall be recorded into current profit or loss when recognizingthe non-current assets or disposal groups held for sale.
13. Long-term equity investment
(1) Determination of initial investment cost
① Long-term equity investment from business combination
1) For the long-term equity investment acquired through business combination involving
enterprises under the same control, the share of the book value of the owners’equity of the combinedparty in the ultimate controller’s consolidated financial statements on the date of combination shall betaken as the initial investment cost of the long-term equity investment. The capital stock premium of thecapital reserve shall be adjusted with the difference between the initial investment cost of the long-termequity investment and the book value of the consideration paid; If the capital stock premium of the capitalreserve is insufficient for writing down, the retained earnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinations
involving enterprises not under the same control, initial investment cost of the investment shall be the fairvalue of the assets paid, liabilities incurred or assumed and equity securities issued by the Company inexchange for control over the acquiree on the date of acquisition. For long-term equity investment insubsidiaries acquired through business combination involving enterprises not under the same controlimplemented by multiple transactions, the initial investment cost shall be the sum of the book value ofequity investment held by the Company in the acquiree before the date of acquisition and the cost ofnew investment on the date of acquisition.
② For long-term equity investment acquired by cash payment, the initial investment cost shall be
the purchase price actually paid. The initial investment cost includes fees, taxes and other necessaryexpenses directly related to acquire the long-term equity investment.
③ For long-term equity investment acquired by issuing equity securities, the initial investment cost
of long-term equity investment obtained by issuing of equity securities shall be the fair value of issuingthe equity securities.
④ The initial investment cost of long-term equity investment obtained by the exchange of
non-monetary assets shall be the fair value of the assets surrendered and relevant taxes payable if theexchange of non-monetary assets has commercial nature and the fair value of the assets received orsurrendered may be reliably measured, unless there is conclusive evidence providing that fair value ofthe assets received is more reliable; For exchange of non-monetary assets not meeting the aboveconditions, the initial investment cost shall be the book value of the assets surrendered and relevanttaxes payable.
⑤ The initial investment cost of a long-term equity investment obtained by debt restructuring shall
be recognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equityinvestment calculated by cost method shall be priced at the initial investment cost. The cost of long-termequity investment shall be adjusted when the investment is added or recovered. The cash dividends orprofits declared to be distributed by the invested company should be recognized as current investmentincome.
The long-term equity investment in associates and joint ventures is accounted by the equitymethod.
If the initial cost of long-term equity investment is greater than the fair value of identifiable netassets of the invested company gained from the investment, the initial cost of long-term equityinvestment shall not be adjusted; If the initial investment cost is smaller than the fair value of identifiable
net assets of the invested company gained from the investment, the difference shall be recorded intocurrent profit or loss, and the cost of long-term equity investments shall be adjusted.After the Company obtains a long-term equity investment, it shall, in accordance with the share ofthe net profits and other comprehensive income of the invested company to be enjoyed or shared,recognize the investment income and other comprehensive income respectively, and adjust the bookvalue of the long-term equity investment. The Company shall, in accordance with the share in the profitsor cash dividends declared and distributed by the invested company, decrease the book value of thelong-term equity investment accordingly.As for other changes in owners’equity except for the net profit and loss, other comprehensiveincome and profit distribution of the invested company, the Company shall adjust the book value of thelong-term equity investment and record it into the owners’equity. When the share of the net profit or lossof the invested company is recognized, the net profit of the invested company shall be adjusted andrecognized according to the fair value of the net identifiable assets of the invested company when theinvestment is made.For the transactions between the Company and associates and joint ventures, the unrealized gainsand losses of the internal transactions shall be offset by the proportion attributable to the Company, andthe investment income is recognized accordingly. The unrealized loss of internal transactions incurred bythe Company and the invested company attributable to asset impairment loss shall not be offset.The Company shall recognize the net losses of the invested company until the book value of thelong-term equity investment and other long-term rights and interests which substantially form the netinvestment made to the invested company are reduced to zero, unless the Company has the obligationto undertake extra losses. If the invested company realizes a net profit in the subsequent period, theCompany shall restore the recognition of its share in profits after its share in profits offsets the share inunrecognized losses.If the accounting policy and accounting period adopted by the invested company is inconsistentwith those adopted he Company, financial statements of the invested company shall be adjusted andinvestment income and other comprehensive income shall be recognized according to the accountingpolicy and accounting period of the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the book value and the actualprice at which the investment is obtained shall be recorded into current profit or loss.For long-term equity investment accounted by the equity method, the part of the investmentoriginally recorded into other comprehensive income shall be accounted for on the same basis as theinvested company’s direct disposal of the relevant assets or liabilities when disposed. The owners’equityrecognized as a result of changes in other owners’equity other than net profit or loss, othercomprehensive income, and profit distribution of the invested company is carried forward proportionallyinto current profit or loss, except for other comprehensive income arising from changes due toremeasurement of net liabilities or net assets of the defined benefit plan.In case of loss of common control or significant influence on the invested company due to disposalof part of the equity investments, residual equity will be accounted by the recognition and measurementcriterion for financial instruments. The difference between the fair value on the date of losing commoncontrol or significant influence and the book value shall be recorded into current profit or loss. Othercomprehensive income recognized due to accounting of the original equity investment by equity methodshall be accounted for on the same basis as the invested company’s direct disposal of the relevant
assets or liabilities when stop using equity method. Owner’s equity recognized due to other changes inother owners’equity other than the net profit or loss, other comprehensive income and profit distributionof the invested company will all be carried forward into current profit or loss when stop using equitymethod.If the Company disposes of part of the equity investment and loses control over the investedcompany, and if the remaining equity after disposal can implement joint control or exert significantinfluence on the invested company, it shall be accounted for using the equity method when the individualfinancial statements are prepared, and the equity shall be adjusted as if the remaining equity had beenaccounted for using the equity method since acquired; if the remaining equity after disposal cannotimplement joint control or exert significant influence on the invested company, it shall be subject toaccounting treatment in accordance with the relevant provisions of the criteria for recognition andmeasurement of financial instruments. The difference between the fair value and the book value on thedate of losing control shall be included in the current profit or loss.If the disposed equities are acquired by the business combination due to the reasons such asadditional investment, the remaining equities after the disposal shall be calculated based on the costmethod or equity method in preparing the individual financial statements, and other comprehensiveincome and other owners' equity recognized because of the equity method adopted for the calculation ofthe equity investment held prior to the purchase date are carried forward in proportion; if the remainingequities after the disposal shall be changed to be accounted in accordance with the recognition andmeasurement criterion for financial instruments, other comprehensive income and other owners' equityshall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested company
Common control means common control over an arrangement according to relevant provisions,and the decision-making for relevant activities of such arrangement needs unanimous agreement of allparticipants sharing the control.Significant influence means having the power to participate in decision-making of the financial andoperating policies of the invested company, but not the power to control or jointly control the formulationof these policies together with other parties.
14. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services,renting or operation and management and with service life more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, andother expenditure incurred before and for making the fixed assets reaching its intended condition for usedirectly attributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred beforeand for making the fixed assets reaching its intended condition for use.
Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be recorded into the cost of fixed assets ifmeeting the recognition conditions for fixed assets, and shall be recorded into current profit or loss if notmeeting the recognition conditions for fixed assets.
(2) Depreciation method
Category Depreciation method Depreciation life Residual rate
Yearly depreciation
rateHouses and buildings Straight-line method 25-30 years 3%-5% 3.17-3.88%
General equipment Straight-line method 10-12 years 3%-5% 7.92-9.70%Special equipment Straight-line method 8years 3%-5% 11.18-12.13%Transportationequipment
Straight-line method 6years 3%-5% 15.83-16.17%Other equipment Straight-line method 6years 3%-5% 15.83-16.17%
(3) Recognition basis, valuation and depreciation methods of fixed assets under financing lease
The fixed assets under financing lease are recognized if one of the following conditions is specifiedby the Company and the leaser in their lease agreement:
① Upon the expiration of the lease term, the ownership of the leased asset belongs to the Company;
② The Company has the option to purchase the asset and the purchase price is far lower than the fair
value of such asset at the time of exercising the option;
③ The lease term covers most of the useful life of the leased asset;
④ There is no large difference between the present value of the minimum lease payments on the
commencement date of lease and fair value of the assets.On the commencement date of lease, book value of the leased assets is the lower of the fair value of theleased assets and the present value of the minimum lease payments, and minimum lease paymentsshall be taken as the book value of the long-term payables, with the difference recognized asunrecognized financing costs.
15. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary
expenditures incurred before the assets reaching its intended condition for use.
(2) Cost of fixed assets that have reached the intended condition for use but for which the
completion settlement has not been handled shall be recognized at the estimated value, anddepreciation shall be provided; Adjustment shall be made to the originally and provisionally estimatedvalue based on the actual cost after the completion settlement is handled, but depreciation alreadyprovided shall not be adjusted.
16. Borrowing costs
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition andconstruction or production of fixed assets, investment properties and inventories meeting the conditionsof capitalization period and capitalization amount should be capitalized and recorded into the cost ofsuch assets; other interest of borrowings, and amortization of discounts or premiums shall be recordedinto expenses in current period. The exchange differences incurred from special foreign currencyborrowings for acquisition and construction or production of fixed assets and investment properties shallbe capitalized and recorded into the cost of such assets if it is within the capitalization period. Auxiliaryexpenses for special borrowings, if incurred before the fixed assets acquired or constructed reaching the
intended condition for use, shall be capitalized at the time of occurrence; other auxiliary expenses shallbe recognized as expenses in current period and recorded into current profit or loss.
(2) Capitalization period of borrowing costs:
① Commencement of capitalization: Capitalization of borrowing interest, amortization of discount
or premium, and exchange differences shall be commenced when all the following conditions are met.
1) Asset expenditure has already occurred.
2) Borrowing costs have already occurred.
3) Acquisition and construction activities necessary to bring the assets to the intended condition
for use have already begun.
② Suspension of capitalization: Where the acquisition and construction of a fixed asset is
interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended and the borrowing costs shall be recognized as current expensesuntil recommencement of the acquisition and construction of the asset.
③ Termination of capitalization: When the fixed assets acquired and constructed reach the
intended condition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be theamount of interest expenses actually incurred in the current period less the interest revenue of theborrowings unused and deposited in bank or the amount of investment income from temporaryinvestment. Interest of general borrowings to be capitalized should be calculated by multiplying theweighted average of asset disbursements of the excess of accumulated asset disbursements over thespecial borrowings by the capitalization rate of used general borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
17. Intangible assets
(1) Valuation method, service life and impairment test
① Valuation and amortization of intangible assets: Externally acquired intangible assets shall be
measured at the actual cost when acquired and averagely amortized during the expected service lifesince the month when the intangible assets is acquired; book value of the self-developed intangibleassets shall be the sum of the expenditures during the research and development stage of internalresearch and development projects of the Company which are eligible for capitalization and theexpenditures incurred before reaching the intended condition for use, and be averagely amortized overthe expected service life since the month in which the intangible asset is ready for use.
② Service life: Service life of intangible assets shall be analyzed and determined when acquired.
Intangible assets with limited service life shall be amortized over period during which they may bringeconomic interests; if the period during which the intangible assets may bring economic benefit to theenterprise is unforeseeable, such intangible assets shall be considered as intangible assets withuncertain service life and shall not be amortized.
③ Impairment test: At the end of each year, the Company shall recheck the service life and
amortization method of the intangible assets. Intangible assets with uncertain service life shall be subjectto impairment test every year whether there is any indication of impairment.
(2) Accounting policy for internal research and development expenditures
The expenditures of the Company’s internal research and development projects are divided into
research phase expenditures and development phase expenditures.
Research phase expenditures shall be recorded into current profit or loss when incurred.Development phase expenditures can be capitalized and recognized as intangible assets onlywhen meeting all of the following conditions, otherwise shall be recorded into current profit or loss whenincurred:
② It is technically feasible to complete this intangible assets so that it can be used or sold.
② Have the intention to complete the intangible assets and use or sell them.
③ The way in which intangible assets generate economic benefits, including the ability to prove
that the products produced using the intangible assets exist in the market or the intangible assetsthemselves exist in the market, and the intangible assets will be used internally, can prove theirusefulness; Sufficient technical, financial resources and other resources support to complete thedevelopment of the intangible asset and the ability to use or sell the intangible asset; the expenditureattributable to the development stage of the intangible asset can be reliably measured.
18. Long-term asset impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress,intangible assets, and other long-term assets measured at cost model, if there are signs of impairment,an impairment test shall be conducted on the date of balance sheet. If the recoverable amount of theasset is less than its book value according to the test, provision for impairment will be made at thedifference and recorded into impairment loss. Recoverable amount is the higher of the net amount of fairvalue of an asset deducting the disposal expenses and the present value of estimated future cash flow ofthe asset. The provision for impairment of assets is calculated and made on an individual basis. If it isdifficult for the Company to estimate the recoverable amount of the individual asset, the recoverableamount of an asset group, to which the said asset belongs, shall be determined. Asset group is thesmallest asset group that can independently generate cash inflows.For goodwill, impairment test shall be conducted at least at the end of each year. Impairment testshall be carried out in combination with the relevant asset group or combination of asset group.The book value of goodwill caused by business combination is amortized to relevant asset groupswith a reasonable method from the date of acquisition when the Company carries out impairment test ongoodwill; or amortized to relevant combination of asset groups if it is difficult to be amortized to relevantasset groups. When the book value of goodwill is amortized to the relevant assets group or combinationof assets groups, it shall be evenly amortized according to the proportion of the fair value of each assetsgroup or combination of assets groups in the total fair value of the relevant assets groups orcombinations of assets groups. Where the fair value cannot be reliably measured, it should be amortizedaccording to the proportion of the book value of each asset group or combination of assets groups in thetotal book value of assets groups or combinations of assets groups.When making an impairment test on the relevant assets groups or combination of assets groupscontaining goodwill, if any indication shows that the assets groups or combinations of assets groups maybe impaired, the Company shall first conduct an impairment test on the assets groups or combinations ofassets groups not containing goodwill, calculate the recoverable amount and compare it with relevantbook value to recognize the corresponding impairment loss. Then the Company shall conduct animpairment test on the assets groups or combinations of assets groups containing goodwill, andcompare the book value of these assets groups or combinations of assets groups (including the bookvalue of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amountof the relevant assets groups or combinations of assets groups is lower than the book value thereof, the
Company shall recognize the impairment loss of goodwill.The above asset impairment losses shall not be reversed in subsequent accounting periods oncerecognized.
19. Long-term deferred expenses
Long-term deferred expenses is recorded according to the actual amount incurred and amortizedover the benefit period or the stipulated amortization period by the straight-line method. If a long-termdeferred expense item cannot benefit a later accounting period, the amortized value of the item that hasnot been amortized shall be transferred to the current profit or loss; long-term deferred expenses suchas expenditure for improvement of fixed assets under operating lease shall be amortized averagelywithin the benefit period.
20. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation refers to the payroll which is expected to be paid in full by the enterprisewithin 12 months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-termcompensation is recognized as liabilities and recorded into current profit or loss or costs of relevantassets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by theenterprise after retirement from or termination of the labor relation with the enterprise in exchange for theservice provided by the employee. Post-employment benefits are divided into two types: Definedcontribution plans and defined benefit plans.
① Defined contribution plan: Contribution which shall be made by the Company separately on the
date of balance sheet in exchange for the service provided by the employee during the accountingperiod shall be recognized as payroll liabilities and recorded into current profit or loss or relevant assetcost.
② Defined benefit plan: Based on the formula determined by expected cumulative welfare unit
method, the benefit obligations arising from the defined benefit plan shall be attributable to the period inwhich the employee provides service and recorded into current profit or loss or cost of relevant asset;changes due to remeasurement of the net liabilities or net assets of the defined benefit plan shall berecorded into other comprehensive income and shall not be reversed to profit or loss in subsequentaccounting periods.
(3) Accounting treatment of dismission benefits
Dismission benefits refers to the compensation paid to the employee by the enterprise fortermination of the labor contract with the employee prior to expiration, or encouraging the employee toaccept downsizing voluntarily.
If the enterprise provides dismission benefits, payroll liabilities arising from dismission benefits shallbe recognized and recorded into current profit or loss on the earlier date of:
① The date when the enterprise could not unilaterally withdraw the dismission benefits which
offered by the plan or layoff proposal due to termination of the labor relation.
② The date when the enterprise recognizes the cost or expense related to the reorganization
related to payment of the dismission benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration,post-employment benefits, and dismission benefits, including long-term paid absences, long-termdisability benefits, long-term profit sharing plan, etc.The other long-term employee benefits provided by the enterprise shall be recognized andmeasured as net liability or net asset of other long-term employee benefits according to relevantprovisions of the defined benefit plan, except for those meetings the conditions of defined contributionplan.
21. Estimated liabilities
(1) Recognition criteria for estimated liabilities
When obligations related to contingencies meet the following conditions, the Company shallrecognize them as estimated liabilities:
① The obligation is the current obligation assumed by the Company.
② The performance of this obligation may result in the outflow of economic benefits.
③ The amount of this obligation can be reliably measured.
(2) Measurement method of estimated liabilities
Considering the risks, uncertainties, and time value of money related to contingencies, theestimated liabilities shall be initially measured at the best estimate of the required expenditure for theperformance of current obligation. If the time value of money is significant, the best estimate shall bedetermined after discounting relevant future cash outflow. The Company shall check the book value ofthe estimated liabilities on the date of balance sheet, and adjust the book value to reflect current bestestimate.
22. Revenue
Whether new revenue standards have been implemented
□ Yes √ No
(1) Revenue from selling goods
Revenue shall be recognized when the following conditions are met: The Company has transferredthe substantial risks and rewards of ownership of the goods to the buyer; the Company retains neithercontinuous management right that usually keeps relation with the ownership nor effective control overthe sold goods; the amount of revenue can be measured reliably; the relevant economic benefits mayflow into the Company; and the relevant costs that have occurred or will occur can be measured reliably.
(2) Revenue from rendering service
Revenue from rendering service shall be recognized when the results of labor service transactionmeet the following conditions at the same time: The amount of revenue can be measured reliably; therelevant economic benefits may flow into the Company; the progress of the transaction can be reliablydetermined;and the relevant costs that have occurred or will occur in the transaction can be measuredreliably.
If the results of labor service transactions cannot be estimated reliably, they shall be treatedseparately as below: If the labor service costs incurred are expected to be compensated, the laborservice revenue is recognized according to the labor cost already incurred and labor cost is recognizedat the same amount. If the labor cost already incurred is not expected to be compensated, the labor cost
already incurred is included in profit or loss for the current period, and the revenue from the provision ofservice is not recognized.
(3) Revenue from transfer of the right-of-use assets
Revenue shall be recognized when the following conditions are met: The economic benefits relatedto the transaction may flow into the Company; the amount of revenue can be measured reliably.
23. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by theCompany and used for acquisition or construction or for formation of long-term assets in other ways,including the financial allocation for purchasing fixed assets or intangible assets, the financial discountfor special loan of fixed assets and others.
The specific standard of the Company for classifying the government subsidies as asset-relatedsubsidies: government subsidies obtained by the Company and used for acquisition or construction orfor formation of long-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Companyclassifies the government subsidies as asset-related subsidies or income-related subsidies were asfollows: Whether the subsidies are used for acquisition or construction or for formation of long-termassets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Governmentsubsidies, when actually received, shall be recognized as deferred income and transferred equally tocurrent profit or loss based on the expected service life of the long-term assets when the long-termassets are available for use.
The asset-related government subsidies are recognized as deferred income, and recorded intocurrent profit or loss by stages based on the service life of the assets acquired and constructed. If therelated asset is sold, transferred, scrapped or damaged before the end of the service life, the deferredincome balance not yet distributed shall be transferred to the profits and losses of the period in which theassets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsides other than asset-relatedgovernment subsidies.
The specific criteria that the Company classifies government subsidies as income-related is: Othergovernment subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Governmentsubsidies, when actually received, shall be recorded into current profit or loss if used to compensate therelevant expenses or losses of the Company in the subsequent period; recorded into current profit orloss directly when acquired if used to compensate relevant expenses or losses incurred by theCompany.
Income-related government subsidies used to compensate the relevant expenses or losses of theCompany in the subsequent period shall be recognized as deferred income when acquired; recordedinto current profit or loss in the period in which relevant expenses are recognized; those used tocompensate relevant expenses or losses incurred by the Company, shall be directly recorded into profitor loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be recorded into
other incomes or used to offset relevant costs and expenses according to the substance of the economic
business. The government subsidies irrelevant with the daily activities of the Company shall be recordedinto non-operating revenue.
24. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognizedaccording to the difference (temporary difference) between the tax base and book value of the assetsand liabilities. Deductible losses that can be carried forward to the subsequent year to offset taxableincome according to the tax law shall be considered as temporary difference, and correspondingdeferred income tax assets shall be recognized.For temporary differences related to the initial recognition of goodwill, corresponding deferredincome tax liabilities shall not be recognized. For the temporary differences related to the initialrecognition of the assets or liabilities incurred in the transaction not for business combination that will notaffect the accounting profits and taxable income (or deductible losses), corresponding deferred incometax assets and deferred income tax liabilities shall not be recognized. The deferred income tax assetsand deferred income tax liabilities are measured on the date of balance sheet according to theapplicable tax rate in the period of expected recovery of relevant assets or liquidation of relevantliabilities.Deferred income tax assets shall be recognized within the limit of taxable income which theCompany may obtain for deducting deductible temporary differences, deductible losses and taxdeduction. Deferred income tax assets and deferred income tax liabilities arising from temporarydifferences related to the investment in subsidiaries and associates shall be recognized. If the time ofreversal of temporary differences can be controlled by the Company and the temporary differences arelikely to not be reversed in the foreseeable future, deferred income tax assets and liabilities shall not berecognized.
25. Leases
(1) Accounting treatment of operating lease
① The rents paid by the Company for leased assets are amortized with the straight-line method in
the whole lease term without deducting the rent-free period and recorded into current expenses. Initialdirect costs related to leasing transaction and paid by the Company shall be recorded into currentexpenses.
Where an asset lessor has assumed the lease-related costs that should be assumed by theCompany, the Company shall deduct such costs from the total rents, and the rents remained after suchdeduction shall be amortized in the lease term and recorded into current expenses.
② The rents received by the Company for leasing assets are apportioned on a straight-line basis
over the entire lease term without deducting the rent-free period and are recognized as lease revenue.The initial direct costs related to lease transactions paid by the Company shall be included in the currentexpenses; if the amount is larger, they shall be capitalized and recorded into the current revenue on thesame basis as the recognition of lease revenue during the entire lease term.
Where the Company has assumed the lease-related costs that should be assumed by the leasee,the Company shall deduct such costs from the total lease revenue, and the rents remained after suchdeduction shall be amortized in the lease term.
(2) Accounting treatment of financial lease
① Assets leased in under financial leases: On the commencement date of lease, book value of
the leased assets is the lower of the fair value of the leased assets and the present value of the minimumlease payments. The minimum lease payment is taken as the book value of the long-term payables, andthe difference between them is taken as unrecognized financing expenses. The Company adopts theeffective interest rate method for unrecognized financing charges, which shall be amortized over thelease term and recorded into financial expenses. The Company records the initial direct expenses in thevalues of leased assets.
② Assets leased out under finance leases: On the commencement date of lease, the Company
shall recognize the difference between the sum of the financial lease receivables and unguaranteedresidual values and its present value as unrealized financing income, and as lease revenue in any leaseperiod in the future when the rents are received. The initial direct expenses incurred by the Company inrelation to the lease transaction shall be recorded into the initial measurement of the financial leasereceivable and the amount of revenue recognized during the lease period shall be reduced.
26. Changes in significant accounting policy and accounting estimates
(1) Changes in significant accounting policy
√ Applicable □ Not applicable
Content and reason of changes in accounting policy
Approvalprocedures
Remarks
Presentation of financial statement: The Ministry of Finance issued |
the Notice on Revising and Printing Formats of FinancialStatements for General Enterprises in 2019 (CK (2019) No.6) inApril, 2019 to revise the format of financial statements ofenterprise.
Refer to the following explanations fordetails of the items in the Financial
retroactive adjustmentPresentation of financial statement: The Notice on Revising andPrinting Formats of Consolidated Financial Statements (2019) (CK(2019) No.16) revised the format of financial statements ofenterprise.
Changes in accounting policy caused by implementation of newfinancial instrument standards: The Ministry of Finance issued theAccountingStandardsfor Business Enterprises No.22 -RecognitionandMeasurementofFinancial Instruments (2017Revision) (CK (2017) No.7), the AccountingStandardsfor BusinessEnterprisesNo.23 - Transfer of Financial Assets (2017 Revision)(CK (2017) No.8), the AccountingStandardsfor BusinessEnterprisesNo.24- Hedging Accounting
No.9) on March 31, 2017, and the AccountingStandardsforBusiness EnterprisesNo.37- Presentation of Financial Instruments(2017 Revision) (CK (2017) No.14) (the above standardscollectively referred to as “New Financial Instrument Standards”)on May 2, 2017, requiring enterprises which were simultaneouslylisted abroad and at home and which were listed abroad andprepared their financial report according to the InternationalFinancial Reporting Standards (IFRS) or theAccountingStandardsfor Business Enterprises (ASBE) toimplement such standards since January 1, 2018; and otherdomestic listed companies to implement such standards sinceJanuary 1, 2019.
According to the provisions fortransition from the old standards to thenew standards, information of the
(2017 Revision) (CK (2017) | comparable period is not adjusted, and |
the beginning retained earnings orother comprehensive income of thereporting period will be adjusted
the new standards and the originalstandards on the date of initialimplementation. Refer to the Note “V.Significant accounting policy andaccounting estimates, 26.(3)Adjustment of relevant items in
financial statements at the beginning of |
the implementation year as a result ofinitial implementation of new financialinstrument standards, new revenuestandards and new lease standardsfrom 2019” for details about impact onthe Financial Statements 2018The impact of CK (2019) No.6 on the Financial Statements 2018 are presented below:
Item
Financial Statements 2018 (Consolidated)
Company)Before change After change Before change After changeNotes receivable and accounts
receivable
Financial Statements 2018 (Parent
16,261,973,287.83
16,261,973,287.83 |
Notes receivable
16,134,641,950.86 |
Accounts receivable
127,331,336.97 |
Notes payable and accounts payable | 3,566,293,179.83 | 175,000.00 |
Notes payable
413,918,369.11 |
Accounts payable
3,152,374,810.72 | 175,000.00 |
Asset impairment loss
10,879,427.89 | 143,797.84 | |||
Asset impairment loss (loss indicated |
with “-”)
-
10,879,427.89 |
-
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the implementation
year as a result of initial implementation of new financial instrument standards, new revenuestandards and new lease standards from 2019
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMBItem December 31, 2018 January 01, 2019 Amount of adjustmentCurrent assets:
Cash and cash equivalents 48,960,048,897.95
48,960,048,897.95
Settlement reserves
Capital lent
Trading financial assets
Financial assets at fair valuethrough profit or loss
Derivative financial assets
Notes receivable 16,134,641,950.86
13,864,930,200.55
-2,269,711,750.31
Accounts receivable 127,331,336.97
127,331,336.97
Accounts receivablefinancing
2,269,711,750.31
2,269,711,750.31
Prepayments 220,916,820.64
220,916,820.64
Premium receivable
Reinsurance receivables
Contract reserve ofreinsurance
Other receivables 871,770,375.85
871,770,375.85
Including: Interest receivable 840,888,887.75
840,888,887.75
Dividends receivable
Purchase restituted financeasset
Inventory 11,795,461,088.43
11,795,461,088.43
Contract asset
Assets held for sale
Non-current assets duewithin one year
Other current assets
Total current assets 78,110,170,470.70
78,110,170,470.70
Non-current assets:
Loans and advances
Debt investment
Available-for-sale financialassets
1,200,000.00
-1,200,000.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 919,477,978.54
919,477,978.54
Other equity instrumentinvestment
Other non-current financialassets
1,200,000.00
1,200,000.00
Investment properties
Fixed assets 5,262,163,428.02
5,262,163,428.02
Construction in progress 351,993,452.86
351,993,452.86
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 412,650,156.71
412,650,156.71
Development expenditures
Goodwill 1,621,619.53
1,621,619.53
Long-term deferred expenses
111,897,668.36
111,897,668.36
Deferred income tax assets 871,859,716.03
871,859,716.03
Other non-current assets 51,231,242.34
51,231,242.34
Total non-current assets 7,984,095,262.39
7,984,095,262.39
Total assets 86,094,265,733.09
86,094,265,733.09
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liabilities
Financial liabilities at fairvalue through profit or loss
Derivative financial liabilities
Notes payable 413,918,369.11
413,918,369.11
Accounts payable 3,152,374,810.72
3,152,374,810.72
Accounts received inadvance
6,706,735,898.48
6,706,735,898.48
Contract liability
Selling financial asset ofrepurchase
Absorbing deposit andinterbank deposit
Security trading of agency
Security sales of agency
Payroll payable 2,769,295,510.19
2,769,295,510.19
Tax payable 5,080,135,497.74
5,080,135,497.74
Other payables 2,585,355,687.52
2,585,355,687.52
Including: Interest payable
Dividend payable
Commission charge andcommission payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities duewithin one year
Other current liabilities
Total current liabilities 20,707,815,773.76
20,707,815,773.76
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 267,010,618.22
267,010,618.22
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 267,010,618.22
267,010,618.22
Total liabilities 20,974,826,391.98
20,974,826,391.98
Owner’s equity:
Capital stock 3,881,608,005.00
3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15
2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 13,120,411,030.42
13,120,411,030.42
Provision for general risk
Undistributed profit 43,802,603,958.99
43,802,603,958.99
Total owners’equityattributable to parentcompany
63,487,270,080.56
63,487,270,080.56
Minority equity 1,632,169,260.55
1,632,169,260.55
Total owners’equity 65,119,439,341.11
65,119,439,341.11
Total liabilities andowners’equity
86,094,265,733.09
86,094,265,733.09
Note on the adjustment:
The Company implemented the new financial standards from January 1, 2019 and adjusted theavailable-for-sale financial assets to other non-current financial assets according to the AccountingStandard for Enterprises No. 22 - Recognition and Measurement of Financial Instruments issued by the
Ministry of Finance.
Balance Sheet of Parent Company
Unit: RMBItem December 31, 2018 January 01, 2019 Amount of adjustmentCurrent assets:
Cash and cash equivalents 20,666,489,987.76
20,666,489,987.76
Trading financial assets
Financial assets at fair valuethrough profit or loss
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 73,237,561.54
73,237,561.54
Other receivables 12,135,135,681.28
12,135,135,681.28
Including: Interest receivable 383,190,672.91
383,190,672.91
Dividends receivable 342,607,430.63
342,607,430.63
Inventory
Contract asset
Assets held for sale
Non-current assets due withinone year
Other current assets
Total current assets 32,874,863,230.58
32,874,863,230.58
Non-current assets:
Debt investment
Available-for-sale financialassets
1,200,000.00
-1,200,000.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 10,517,324,976.74
10,517,324,976.74
Other equity instrumentinvestment
Other non-current financialassets
1,200,000.00
1,200,000.00
Investment properties
Fixed assets 107,626,051.93
107,626,051.93
Construction in progress 99,478,221.33
99,478,221.33
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 40,573,281.24
40,573,281.24
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 100,889.03
100,889.03
Other non-current assets
Total non-current assets 10,766,303,420.27
10,766,303,420.27
Total assets 43,641,166,650.85
43,641,166,650.85
Current liabilities:
Short-term loans
Trading financial liabilities
Financial liabilities at fair valuethrough profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 175,000.00
175,000.00
Accounts received in advance
Contract liability
Payroll payable 1,267,974.86
1,267,974.86
Tax payable 36,702,690.98
36,702,690.98
Other payables 332,300,571.41
332,300,571.41
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities duewithin one year
Other current liabilities
Total current liabilities 370,446,237.25
370,446,237.25
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 370,446,237.25
370,446,237.25
Owner’s equity:
Capital stock 3,881,608,005.00
3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15
2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 6,652,731,832.83
6,652,731,832.83
Undistributed profit 30,053,733,489.62
30,053,733,489.62
Total owners’equity 43,270,720,413.60
43,270,720,413.60
Total liabilities andowners’equity
43,641,166,650.85
43,641,166,650.85
Note on the adjustment:
The Company implemented the new financial standards from January 1, 2019 and adjusted theavailable-for-sale financial assets to other non-current financial assets according to the AccountingStandard for Enterprises No.22 - Recognition and Measurement of Financial Instruments issued by theMinistry of Finance.
(4) Comparison data before the retrospective adjustments due to implementation of new
standards for financial instruments or new lease standards since 2019
□ Applicable √ Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax Item Tax Basis Tax RateVAT* Taxable sales revenue
taxes)Consumption tax Taxable price or ex-factory price 10%, 20%Urban maintenance and construction
tax
Turnover tax payable 7%Corporate income tax Taxable income 25%Education surcharge Turnover tax payable 3%Local education surcharge** Turnover tax payable 2%
*According to the Announcement of the Ministry of Finance, the State Taxation Administration andthe General Administration of Customs on Relevant Policies for Deepening the Value-Added Tax Reform(Announcement No. 39 [2019] of the Ministry of Finance, the State Taxation Administration and theGeneral Administration of Customs), VAT taxable sale or import of goods by a general VAT taxpayershall be adjusted to 13% from the original applicable tax rate of 16% since April 1, 2019.**According to the Notice of the People’s Government of Sichuan Province on Printing theManagement Measures for Collection and Use of Local Education Surcharge (CFH [2011] No. 68)issued the People’s Government of Sichuan Province on April 2, 2011, entities and individuals payingvalue-added tax, business tax, and consumption tax within administrative regions of Sichuan Provinceshall pay local education surcharge at 2% of the amount of the “three taxes” actually paid.Note on disclosure of taxpayer applying different corporate income tax rates:
Name of taxpayer Income tax rateSichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 15%Sichuan Yibin Plastic Packaging Materials CompanyLimited
15%Sichuan Yibin Wuliangye Environmental Protection Co.,Ltd.
15%Yibin Xinxing Packaging Co., Ltd. 20%Wuhou Cultural Development Co., Ltd. 20%Sichuan Jiebeike Environmental Technology Co., Ltd. 20%Sichuan Jinwuxin Technology Co., Ltd. 20%Yibin Wuliangye Xinshengdai Liquor Co., Ltd. 20%Sichuan Wuliangye Tourist Agency Co., Ltd. 20%
2. Tax preference
(1) VAT
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificateof social welfare enterprise “FQZZ No. 51004121049” issued by the Department of Civil Affairs of
Sichuan Province. The Company, conforming to relevant provisions of GSF [2016] No. 33 and the Noticeon VAT Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance andthe State Administration of Taxation (CS [2016] No. 52), enjoys the drawback policy of value-added tax.Recoverable value-added tax of each month=Number of disabled person employed by the taxpayer incurrent month×quadruple of the minimum wage of current month. The amount of value-added taxrefunded in 2019 was RMB 24,111,360.00.According to the Notice of the Ministry of Finance and the State Administration of Taxation onPrinting the Catalog of Preferential Value-added Tax for Comprehensive Utilization of Resources andService (CS [2015] No. 78), the steam, white carbon black, lactic acid, and calcium lactate products soldby Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. and produced with waste distilled grainand pot bottom water for brewing can enjoy the 70% drawback policy for the value-added tax realizedsince July 1, 2015. The amount of value-added tax refunded in 2019 was RMB 5,166,722.30.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., conforming to the Notice of the StateAdministration of Taxation on Issues about Corporate Income Tax of Further Implementing the WesternDevelopment Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed withthe No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15% in 2018.Sichuan Yibin Plastic Packaging Materials Company Limited, conforming to the Notice of the StateAdministration of Taxation on Issues about Corporate Income Tax of Further Implementing the WesternDevelopment Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed withthe No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15% in 2018.Sichuan Yibin Wuliangye Environmental Protection Co., Ltd., conforming to the Notice of the StateAdministration of Taxation on Issues about Corporate Income Tax of Further Implementing the WesternDevelopment Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed withthe No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15% in 2018.Yibin Xinxing Packaging Co., Ltd., Wuhou Cultural Development Co., Ltd., Sichuan JiebeikeEnvironmental Technology Co., Ltd., Sichuan Jinwuxin Technology Co., Ltd., Yibin WuliangyeXinshengdai Liquor Co., Ltd. and Sichuan Wuliangye Tourist Agency Co., Ltd. conform to the provisionsof the Notice on Implementing the Inclusive Tax Deduction Policy for Small and Micro Enterprises of theMinistry of Finance and the Statement Administration of Taxation (CS [2019] No. 13), which specifyingthat if the annual taxable income of small low-profit enterprises is less than RMB 1 million, the taxableincome shall be 25% of such annual taxable income and the corporate income tax rate shall be 20%; ifthe annual taxable income is more than RMB 1 million but less than RMB 3 million, the taxable incomeshall be 50% of such annual taxable income and the corporate income tax rate shall be 20%. Income taxrate shall be 20%.
VII. Notes to consolidated financial statements
1. Cash and cash equivalents
Unit: RMBItem Ending balance Beginning balanceCash on hand 28,179.40
48,306.24
Bank deposit 63,138,797,874.22
48,888,675,659.23
Other cash and cash equivalents 99,999,670.17
71,324,932.48
Total 63,238,825,723.79
48,960,048,897.95
Including: Total amount of fundsrestricted in use due to mortgage,
pledge or freezing
99,996,480.91
71,321,754.32
Other notes:
1. Other cash and cash equivalents include the balance of securities trading of RMB 3,189.26
deposited with Yibin Business Department of Essence Securities, deposit of bank acceptance bill ofRMB 99,754,080.91, and other deposits of RMB 242,400.00.
2. There are no other funds being restricted in use due to mortgage, pledge or freezing except for
the other cash and cash equivalents above-mentioned; and there is no funds deposited abroad andbeing restricted in repatriation.
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMBItem Ending balance Beginning balanceBank acceptance bill 14,643,149,595.72
13,864,930,200.55
Total 14,643,149,595.72
13,864,930,200.55
Unit: RMBCategory
Ending balance Beginning balanceBook balance Bad debt provision
Book value
Book balance Bad debt provision
Book valueAmount Proportion
Amount
Provisionproportion
(%)
Amount Proportion Amount
Provisionproportion
(%)Notes receivable withbad debt provision bycombination
14,643,149,595.72
100.00%
14,643,149,595.72
13,864,930,200.55
100.00%
13,864,930,200.55
Including: Bankacceptance bill
14,643,149,595.72
100.00%
14,643,149,595.72
13,864,930,200.55
100.00%
13,864,930,200.55
Total 14,643,149,595.72
100.00%
14,643,149,595.72
13,864,930,200.55
100.00%
13,864,930,200.55
(2) Notes receivable pledged by the Company at the end of the period
The Company had no notes receivable pledged by the Company at the end of the period.
(3) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date of balance sheet
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date ofbalance sheet
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform
The Company had no notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform.
(5) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
3. Accounts receivable
(1) Disclosure of receivables by category
Unit: RMBCategory
Ending balance Beginning balanceBook balance Bad debt provision
Book value
Book balance Bad debt provision
Book valueAmount Proportion Amount
Provisionproportion(%)
Amount Proportion
Amount
Provisionproportion(%)Accounts receivablewith bad debtprovision by singleitem
1,508,250.71
1.05%
1,508,250.71
100.00%
683,959.77
0.50%
683,959.77
100.00%
Including: Externalcustomer
1,508,250.71
1.05%
1,508,250.71
100.00%
683,959.77
0.50%
683,959.77
100.00%
Receivables with baddebt provision bycombination
142,604,157.15
98.95%
8,154,464.12
5.72%
134,449,693.03
135,861,345.01
99.50%
8,530,008.04
6.28%
127,331,336.97
Including: External |
customer
88,029,978.68
61.08%
8,154,464.12
9.26%
79,875,514.56
84,110,685.83
61.60%
8,530,008.04
10.14%
75,580,677.79
Related parties 54,574,178.47
37.87%
54,574,178.47
51,750,659.18
37.90%
51,750,659.18
Total 144,112,407.86
100.00%
9,662,714.83
6.70%
134,449,693.03
136,545,304.78
100.00%
9,213,967.81
6.75%
127,331,336.97
Bad debt provision by single item:
Unit: RMBName
Ending balanceBook balance Bad debt provision
(%)
Reasons for provisionNingxia HongzhongningWolfberry Products Co., Ltd.
516,135.60
Provision proportion | ||
516,135.60
100.00%
Expected irrecoverable
Nanxi Daliangxin Food Co.,Ltd.
389,729.12
389,729.12
100.00%
Expected irrecoverable
Hunan Liuyanghe LiquorIndustry Co., Ltd.
308,155.34
308,155.34
100.00%
Expected irrecoverable
Sichuan Debo DailyCommodity Co., Ltd.
294,230.65
294,230.65
100.00%
Expected irrecoverable
Total 1,508,250.71
1,508,250.71
-- --
Bad debt provision by combination:
Unit: RMBName
Ending balanceBook balance
Bad debtprovision
Provisionproportion (%)
Reasons for
provisionAccounts receivable with bad debtprovision by combination of externalcustomer
88,029,978.68
8,154,464.12
9.26%
Accounts receivable with bad debtprovision by combination of relatedparties
54,574,178.47
Total 142,604,157.15
8,154,464.12
-- --
Disclosure by aging
Unit: RMBAging Book balanceWithin 1 year (inclusive) 129,855,743.16
1 to 2 years 5,990,669.43
2 to 3 years 1,537,218.35
More than 3 years 6,728,776.92
3 to 4 years 1,700,314.39
4 to 5 years 497,316.19
More than 5 years 4,531,146.34
Total 144,112,407.86
(2) Provision, recovery or reversal of bad debt provision in current period
Unit: RMBCategory
Beginning
balance
Amount of change in current year
EndingbalanceProvisions
Recoveryor reversal
Write-off OthersAccounts receivable with bad debtprovision by single item
683,959.77
864,735.83
13,812.99
54,257.88
1,508,250.71
Accounts receivable with bad debtprovision by combination of externalcustomer
8,530,008.04
-375,543.92
8,154,464.12
Total 9,213,967.81
489,191.91
13,812.99
54,257.88
9,662,714.83
(3) Accounts receivable actually written off in current period
Unit: RMBItem Write-off amountShijiazhuang Qiaoxitang Tobacco, Alcohol and Food Co.,Ltd.
54,257.88
Total 54,257.88
(4) Accounts receivable with top 5 ending balances by debtor
Unit: RMBUnit name
Ending balance ofaccounts receivable
Proportion in totalending balance ofaccounts receivable
debt provisionSichuan China Tobacco Industry Co., Ltd. 32,678,650.80
Ending balance of bad | ||
22.68%
1,633,932.54
Sichuan Putian Times Technology Co., Ltd. 31,324,539.34
21.74%
Sichuan Yibin Wuliangye Group EcologicalBrewery and Marketing Co., Ltd.
9,512,479.81
6.60%
Chengdu PUTH Medical Plastics PackagingCo., Ltd.
8,420,650.88
5.84%
Jiangsu Deruizhi International Trade Co., Ltd. 6,031,347.70
4.19%
301,567.39
Total 87,967,668.53
61.05%
4. Accounts receivable financing
(1) Presentation of accounts receivable financing by category
Unit: RMBItem Ending balance Beginning balanceBank acceptance bill 3,450,166,659.06
2,269,711,750.31
Total 3,450,166,659.06
2,269,711,750.31
The Company, based on the management purpose of notes receivable, classifies notes receivable for receiving contract cash flow and selling asfinancial assets measured at fair value with changes recorded into other comprehensive income.
Unit: RMBCategory
Ending balance Beginning balanceBook balance Bad debt provision
Book value
Book balance Bad debt provision
Book valueAmount Proportion
Amount
Provision proportion (%) |
Amount Proportion
Amount
Provision proportion (%) | ||||
Accounts receivable financing |
with bad debt provision by
single item | ||||||||||
Accounts receivable financing |
with bad debt provision by
3,450,166,659.06
combination |
100.00%
3,450,166,659.06
2,269,711,750.31
100.00%
2,269,711,750.31
Including: Bank acceptance bill 3,450,166,659.06
100.00%
3,450,166,659.06
2,269,711,750.31
100.00%
2,269,711,750.31
Total 3,450,166,659.06
100.00%
3,450,166,659.06
2,269,711,750.31
100.00%
2,269,711,750.31
(2) Accounts receivable financing pledged by the Company at the end of the period
Unit: RMBItem Ending pledged amountBank acceptance bill 144,514,604.00
Total 144,514,604.00
Note: The bank acceptance bill pledged by the Company at the end of the period is mainly arising from the Company’s pledge of notes in large amountto the Bank and the issuance of notes in small amount for external payments.
(3) Accounts receivable financing endorsed or discounted by the Company at the end of the
period and not matured yet on the date of balance sheet
Unit: RMBItem
period
Amount not yet derecognized at the
end of the periodBank acceptance bill 918,471,579.06
Amount derecognized at the end of the |
Total 918,471,579.06
(4) Accounts receivable financing transferred to accounts receivable by the Company at the end
of the period due to failure of the drawer to perform
None.
5. Prepayments
(1) Prepayments presented by aging
Unit: RMBAging
Ending balance Beginning balanceAmount Proportion Amount ProportionWithin 1 year 136,286,439.94
58.77%
126,443,342.78
57.24%
1 to 2 years 6,819,475.06
2.94%
4,649,815.75
2.10%
2 to 3 years 1,127,071.75
0.49%
3,577,011.18
1.62%
More than 3 years 87,676,153.34
37.81%
86,246,650.93
39.04%
Total 231,909,140.09
-- 220,916,820.64
--
Reasons for non-timely settlement of prepayments in significant amount with the aging more than 1year:
Prepayments with the aging more than 1 year are mainly the prepayments to Yibin Guoding GasCo., Ltd. for the gas source as agreed.
(2) Prepayments with top 5 ending balances by prepayment object
Unit: RMBUnit name Ending balance Proportion in ending balance of prepaymentsYibin Guoding Gas Co., Ltd.
72,922,000.00 | 31.44% | |
Sichuan Energy Investment New Chemical Materials Co., Ltd. | 24,057,942.00 | 10.37% |
Metro Jinjiang Cash&Carry Co., Ltd.
16,686,600.00 | 7.20% |
Jiangsu Xingye Plastic Co., Ltd.
16,146,570.00 | 6.96% |
Sacred Mountain Molin Group Co., Ltd., Sichuan | 8,283,185.84 | 3.57% |
Total
138,096,297.84 | 59.55% |
6. Other receivables
Unit: RMBItem Ending balance Beginning balanceInterest receivable 1,215,275,214.91
840,888,887.75
Other receivables 33,369,357.49
30,881,488.10
Total 1,248,644,572.40
871,770,375.85
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Item Ending balance Beginning balanceInterest of fixed term deposit1,215,275,214.91
840,888,887.75
Total
1,215,275,214.91
840,888,887.75
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Other receivables
1) Other receivables classified by nature
Unit: RMBNature of receivable Ending book balance Beginning book balance
Reserve fund 6,792,778.95
8,689,924.59
Loans to Oriental Outlook Media Co.,
Ltd.
1,000,000.00
Current account 7,027,439.51
8,298,069.83
Deposit 19,102,013.23
9,544,328.72
Other advance money for others or
temporary payment
4,698,433.09
7,107,156.00
Total 37,620,664.78
34,639,479.14
2) Provision for bad debt
Unit: RMBBad debt provision
Stage 1 Stage 2 Stage 3
TotalExpected credit losses
over the coming 12
months
the entire duration (nocredit impairment)
Expected credit loss
Expected credit loss for | for |
the entire duration(credit impairment has
occurred)Balance on January 1,2019
3,725,731.41
32,259.63
3,757,991.04
Balance on January 1,2019 in current period
-- -- -- ----Transfer to stage 3 -151,072.11
151,072.11
Provisions in current period
644,388.36
644,388.36
Write-off in current period
151,072.11
151,072.11
Balance on December 31,2019
4,219,047.66
32,259.63
4,251,307.29
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMBAging Book balanceWithin 1 year (inclusive) 22,545,268.61
1 to 2 years 8,814,667.35
2 to 3 years 1,502,892.66
More than 3 years 4,757,836.16
3 to 4 years 1,008,867.43
4 to 5 years 2,382,123.82
More than 5 years 1,366,844.91
Total 37,620,664.78
3) Provision, recovery or reversal of bad debt provision in current period
Unit: RMBCategory
Beginningbalance
Amount of change in current year
Ending Balance
Provisions
RecoveryorReversal
Write-off Others
Other receivables with bad debt provision bysingle item
32,259.63
151,072.11
151,072.11
32,259.63
Other receivables with bad debt provision bycredit risk combination
3,725,731.41
493,316.25
4,219,047.66
Total 3,757,991.04
644,388.36
151,072.11
4,251,307.29
4) Other receivables actually written off in current period
Unit: RMBItem Write-off amountLinzhang County Power Supply Bureau of Hebei Province 151,072.11
Total 151,072.11
5) Other receivables with top 5 ending balances by debtor
Unit: RMBUnit name
Nature ofreceivable
Endingbalance
Aging
Proportion in totalending balance ofother receivables
Ending balance ofbad debt provision
Yibin Cuiping District Housing andUrban-Rural Development Bureau
Deposit 5,000,000.00
1-2 years 13.29%
500,000.00
Yibin Municipal Housing,Urban-Rural Development and CityAdministration Bureau
Deposit 5,000,000.00
Within 1 year
13.29%
150,000.00
Chongqing Xibolesi BuildingEngineering Co., Ltd.
Advancemoney for
others
1,671,340.32
4-5 years 4.44%
835,670.16
China Mobile Group SichuanSub-CompanyYibin Branch
Currentaccount
1,216,160.92
Within 1year;1-2 years
3.23%
42,995.00
CRM Foshan Iron and Steel Co.,Ltd.
Deposit 894,200.00
Within 1year; 1-2years; 2-3
years
2.38%
120,671.00
Total -- 13,781,701.24
-- 36.63%
1,649,336.16
7. Inventory
Whether new revenue standards have been implemented
□ Yes √ No
(1) Inventory classification
Unit: RMBItem
Ending balance Beginning balanceBook balance
Falling price
reserves
Book value Book balance
Falling price
reserves
Book value
Rawmaterials
820,802,958.97
5,470,868.60
815,332,090.37
704,404,961.76
5,566,238.71
698,838,723.05
Goods inprocess
920,929,926.83
920,929,926.83
820,750,667.60
820,750,667.60
Inventory of |
goods
2,641,768,788.26
23,606,759.68
2,618,162,028.58
1,628,219,456.72
22,125,947.87
1,606,093,508.85
Turnovermaterials
2,443,559.07
2,443,559.07
2,922,520.24
2,922,520.24
Semi-finished products
9,185,653,882.86
9,185,653,882.86
8,392,578,113.47
8,392,578,113.47
Packingmaterials
16,350,413.67
15,916,796.10
433,617.57
16,409,356.58
15,916,796.10
492,560.48
Goodsissued
91,743,317.05
917,805.65
90,825,511.40
152,470,003.77
152,470,003.77
Work inprocess-ou
tsourced
45,838,998.73
45,838,998.73
57,909,918.97
57,909,918.97
Goods in
transit
63,405,072.00
63,405,072.00
Total 13,725,531,845.44
45,912,230.03
13,679,619,615.41
11,839,070,071.11
43,608,982.68
11,795,461,088.43
(2) Inventory falling price reserves
Unit: RMBItem
Beginningbalance
Increase in current period Decrease in current period
Ending balanceProvisions Others
Reversed or
written-off
OthersRaw materials 5,566,238.71
95,370.11
5,470,868.60
Inventory ofgoods
22,125,947.87
2,102,958.26
622,146.45
23,606,759.68
Packingmaterials
15,916,796.10
15,916,796.10
Goods issued
917,805.65
917,805.65
Total 43,608,982.68
3,020,763.91
717,516.56
45,912,230.03
(3) Note on ending balance of inventory containing the capitalized amount of borrowing costs
None.
8. Long-term equity investment
Unit: RMB
Invested company
Beginning balance(book value)
Increase/decrease in the current period
Ending balance (bookvalue)
Provision forimpairmentEnding balance
Additional investment
Reducedinvestment
Profit and loss oninvestments recognized
with equity method
Adjustment of
other
comprehensive
income
Changesin otherequities
Declaration of cashdividends or profits
Accrual of
comprehensive | impairment |
provision
OthersI. Joint venturesII. AssociatesOriental Outlook Media Co., Ltd. 13,742,029.36
3,336,110.30
17,078,139.66
Sichuan Yibin Wuliangye GroupFinance Co., Ltd.
905,735,949.18
89,122,537.57
994,858,486.75
Yibin Jiamei Intelligent Packaging |
Co., Ltd.
9,800,000.00
42,105.18
9,842,105.18
Sub-total 919,477,978.54
9,800,000.00
92,500,753.05
1,021,778,731.59
Total 919,477,978.54
9,800,000.00
92,500,753.05
1,021,778,731.59
Other notes:
1. The Company invested in Oriental Outlook Media Co., Ltd., an associate of the Company, for implementing the strategy of entering the media
industry. The Company contributed RMB 17.15 million in April 2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by ChinaWorldbest Group, ShanghaiWorldbestCo.,Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
2. As reviewed and approved by the 22th meeting of the 4th board of directors of the Company on October 24, 2012, the Company, Wuliangye
Group Company and 6 of its subsidiaries, and ABC International Holdings Limited jointly invested and established the Finance Company. Its registeredcapital is RMB 2billion, among which the Company contributed RMB 0.72 billion, taking up 36% of the registered capital.
3. In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, and Shenzhen Jinjia New Intelligent
Packaging Co., Ltd. jointly invested and established Yibin Jiamei Intelligent Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent PackagingCo., Ltd. include research and development, platemaking, printing, production and sales of packaging products. Its registered capital is RMB 20 million,among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB 9.8 million, taking up 49% of the registered capital.
9. Other non-current financial assets
Unit: RMBItem Ending balance Beginning balanceSichuan Chinese Liquor Jinshanjiao Brand Operationand Development Co., Ltd.
1,200,000.00
1,200,000.00
Total 1,200,000.00
1,200,000.00
10. Fixed assets
Unit: RMBItem Ending balance Beginning balanceFixed assets 6,108,183,363.27
5,261,346,191.85
Disposal of fixed assets 562,549.45
817,236.17
Total 6,108,745,912.72
5,262,163,428.02
(1) Note on fixed assets
Unit: RMBItem
Special equipment
Houses and buildings | General equipment | Transportation equipment |
Other equipment
Total
I. Original book value: | ||||||
1. Beginning balance |
7,827,986,487.58
3,474,240,996.44
2,133,958,310.77
117,138,942.46
620,678,629.49
14,174,003,366.74
2. Increase in current period |
1,156,260,065.06
80,931,708.99
89,319,869.62
6,819,421.06
25,942,180.76
1,359,273,245.49
(1) Acquisition 1,108,654,082.05
28,370,131.13
86,960,597.22
6,819,421.06
23,200,743.84
1,254,004,975.30
(2) Transfer |
fromconstruction in
47,605,983.01
progress |
52,561,577.86
2,359,272.40
2,741,436.92
105,268,270.19
(3) Increase |
from business
combination |
3. Decrease in current period |
84,169,428.63
519,607,854.86
2,922,613.68
7,456,646.43
23,864,631.73
638,021,175.33
(1) Disposal or scrap |
84,169,428.63
519,607,854.86
2,922,613.68
7,456,646.43
23,864,631.73
638,021,175.33
4. Ending balance |
8,900,077,124.01
3,035,564,850.57
2,220,355,566.71
116,501,717.09
622,756,178.52
14,895,255,436.90
II. |
Accumulated
depreciation | ||||||
1. Beginning balance |
3,417,204,970.41
3,126,226,503.79
1,731,471,151.25
86,395,645.96
542,827,436.69
8,904,125,708.10
2. Increase in current period |
228,003,046.58
111,280,599.43
49,193,686.07
6,744,751.65
23,184,612.31
418,406,696.04
(1) Provision 228,003,046.58
111,280,599.43
49,193,686.07
6,744,751.65
23,184,612.31
418,406,696.04
3. Decrease in current period |
15,166,643.55
497,466,621.24
2,536,142.93
6,862,770.75
21,959,618.83
543,991,797.30
(1) Disposal or scrap |
15,166,643.55
497,466,621.24
2,536,142.93
6,862,770.75
21,959,618.83
543,991,797.30
4. Ending balance |
3,630,041,373.44
2,740,040,481.98
1,778,128,694.39
86,277,626.86
544,052,430.17
8,778,540,606.84
III. Provision for impairment | ||||||
1. Beginning balance |
1,544,029.33
5,860,320.21
656,514.70
470,602.55
8,531,466.79
2. Increase in current period |
(1) Provision
3. Decrease in current period | ||||||
(1) Disposal or scrap |
4. Ending balance |
1,544,029.33
5,860,320.21
656,514.70
470,602.55
8,531,466.79
IV. Book value
1. Ending book value |
5,268,491,721.24
289,664,048.38
441,570,357.62
30,224,090.23
78,233,145.80
6,108,183,363.27
2. Beginning book value |
4,409,237,487.84
342,154,172.44
401,830,644.82
30,743,296.50
77,380,590.25
5,261,346,191.85
(2) Fixed assets that are temporarily idle
None.
(3) Fixed assets under financing lease
None.
(4) Fixed assets leased out by operating lease
Unit: RMBItem Ending book valueBuildings 135,816,415.80
Warehouse 1,797,109.38
Equipment 11,038,017.98
Total 148,651,543.16
(5) Fixed assets without certificate of title
Unit: RMBItem Book value Reason for not obtaining certificate of titleBuildings 979,720,018.13
The certificate of title has not been obtained due to historical
reasons, to which the Company has attached great importance |
and planned to obtain the certificate of title gradually.Buildings 54,686,456.36
In progressTotal 1,034,406,474.49
Note: According to the Interim Regulation on Real Estate Registration of Sichuan Province 2016,the property ownership certificate and the land use certificate are integrated into the real estateownership certificate. The Company is sorting out relevant assets and handling with the certificate of titleof relevant assets.
(6) Disposal of fixed assets
Unit: RMBItem Ending balance Beginning balanceSpecial equipment
47,860.19
Other equipment 562,549.45
769,375.98
Total 562,549.45
817,236.17
11. Construction in progress
Unit: RMB
Item Ending balance Beginning balanceConstruction in progress 810,667,169.54
350,232,362.79
Project goods and materials 1,761,078.76
1,761,090.07
Total 812,428,248.30
351,993,452.86
(1) Construction in progress
Unit: RMBItem
Ending balance Beginning balanceBook balance
Provision forimpairment
Book value Book balance
Provision forimpairment
Book value300-Thousand-TonPottery Jar Aging SpiritRoom (Phase I)
432,757,395.14
432,757,395.14
35,213,355.27
35,213,355.27
Wuliangye IndustrialPark ConstructionProject
116,380,592.65
116,380,592.65
115,500,592.65
115,500,592.65
Factory Buildings andOther BuildingsRenovation Project ofthe Company
26,482,983.09
26,482,983.09
11,436,881.51
11,436,881.51
Pipe NetworkReconstruction Projectof Jiangbei Park
26,591,075.62
26,591,075.62
1,010,566.03
1,010,566.03
No. 4 Kiln Upgradingand ReconstructionProject
21,776,007.96
21,776,007.96
22,420,540.05
22,420,540.05
Partial Overhead LinesUnderlayReconstruction Projectof the Trunk Road ofthe East and WestGates
10,698,865.18
10,698,865.18
10,448,865.18
10,448,865.18
Songgong River(Wuliangye Section)ComprehensiveTreatment Project
51,266,490.32
51,266,490.32
Other sporadic works 178,380,255.45
2,400,005.55
175,980,249.90
105,335,077.33
2,400,005.55
102,935,071.78
Total 813,067,175.09
2,400,005.55
810,667,169.54
352,632,368.34
2,400,005.55
350,232,362.79
(2) Changes in important construction in progress in current period
Unit: RMBProject name Budget
Beginning
balance
Increase incurrent period
Amounttransferred tofixed assets inthe currentperiod
Otherdecreasesin current
periodDecrease
Ending balance
Proportionof project
budget (%)
Engineeringprogress
Accumulated
amount of
interestcapitalized
Including:
Capitalizedamount ofinterest in
currentperiod
Capitalizationrate of interest
in current
period
Source of
funds300-Thousand-TonPottery Jar AgingSpirit Room (Phase I)
857,070,000.00
35,213,355.27
397,544,039.87
432,757,395.14
50.49%
83.00%
Own
fundsWuliangye IndustrialPark ConstructionProject
229,980,000.00
115,500,592.65
880,000.00
116,380,592.65
51.37%
65.00%
Own
subsidies
funds and | ||
Factory Buildings and |
Other Buildings
the Company
201,841,000.00
Renovation Project of |
11,436,881.51
15,046,101.58
26,482,983.09
13.00%
13.00%
Own
fundsPipe NetworkReconstructionProject of JiangbeiPark
109,396,900.00
1,010,566.03
25,580,509.59
26,591,075.62
23.38%
90.00%
Own
fundsNo.4 Kiln Upgradingand ReconstructionProject
48,496,000.00
22,420,540.05
3,463,332.58
4,107,864.67
21,776,007.96
53.37%
92.00%
Own
fundsPartial OverheadLines UnderlayReconstructionProject of the TrunkRoad of the East andWest Gates
17,600,000.00
10,448,865.18
250,000.00
10,698,865.18
60.79%
99.00%
Own
fundsSonggong River(Wuliangye Section)ComprehensiveTreatment Project
93,568,300.00
51,266,490.32
10,964,395.63
62,230,885.95
66.51%
100%
Own
subsidiesTotal 1,557,952,200.00
funds and | ||
247,297,291.01
453,728,379.25
66,338,750.62
634,686,919.64
-- --
--
(3) Project goods and materials
Unit: RMBItem
Ending balance Beginning balanceBook balance
Provision forimpairment
Book value Book balance
Provision forimpairment
Book valueProject goods and
materials
1,761,078.76
1,761,078.76
1,761,090.07
1,761,090.07
Total 1,761,078.76
1,761,078.76
1,761,090.07
1,761,090.07
12. Intangible assets
(1) Note on intangible assets
Unit: RMBItem Land use right Patents
Non-patented
technology
Software system
Non-patented technology | Technology use right |
TotalI. Original book value
1. Beginning balance 481,060,308.32
55,096,019.13
10,318,357.82
546,474,685.27
2. Increase in current period |
18,804,767.25
73,584.91
18,878,352.16
(1) Acquisition
18,804,767.25
73,584.91
18,878,352.16
(2) Internal research and development | ||||||
(3) Increase from business combination |
3. Decrease in current period |
2,366,675.00
2,366,675.00
(1) Disposal 2,366,675.00
2,366,675.00
4. Ending balance 478,693,633.32
73,900,786.38
10,391,942.73
562,986,362.43
II. Accumulated amortization |
1. Beginning balance 99,726,688.08
23,779,482.66
10,318,357.82
133,824,528.56
2. Increase in current period |
9,754,067.76
9,477,278.67
4,292.47
19,235,638.90
(1) Provision 9,754,067.76
9,477,278.67
4,292.47
19,235,638.90
3. Decrease in current period |
229,032.84
229,032.84
(1) Disposal 229,032.84
229,032.84
4. Ending balance 109,251,723.00
33,256,761.33
10,322,650.29
152,831,134.62
III. Provision for impairment |
1. Beginning balance
2. Increase in current period |
(1) Provision
3. Decrease in current period |
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 369,441,910.32
40,644,025.05
69,292.44
410,155,227.81
2. Beginning book value 381,333,620.24
31,316,536.47
412,650,156.71
At the end of current period, the intangible assets created by internal research and development ofthe Company accounts for 0.00% of the balance of intangible assets.
(2) Note on land use right for which the certificate of title has not been obtained
Unit: RMBItem Book value Reason for not obtaining certificate of titleLand use right 1,206,138.86
The certificate of title has not been obtained due to historical
reasons, to which the Company has attached great importance |
and planned to obtained the certificate of title graduallyTotal 1,206,138.86
13. Goodwill
(1) Original book value of goodwill
Unit: RMB
Name of invested company or matters forming
goodwill
Beginningbalance
Increase in current period
Decrease incurrent period
Ending balanceThrough business
combination
Disposal
Sichuan Yibin Global Group Shenzhou GlassCo., Ltd.
37,535.96
37,535.96
Sichuan Yibin Global Gelasi GlassManufacturing Co., Ltd.
18,005.18
18,005.18
Sichuan Yibin Plastic Packaging MaterialsCompany Limited
666,461.77
666,461.77
Sichuan Yibin Push Group 3D Co., Ltd. 899,616.62
899,616.62
Total 1,621,619.53
1,621,619.53
14. Long-term deferred expenses
Unit: RMBItem Beginning balance
Increase in current |
period
Amount amortized
to current period
Other decreases Ending balanceMold 93,695,939.35
30,026,977.59
45,183,869.83
78,539,047.11
Overhaulexpenses of kilns
10,713,282.75
4,733,974.80
5,979,307.95
Others 7,488,446.26
1,732,745.85
2,138,215.21
7,082,976.90
Total 111,897,668.36
31,759,723.44
52,056,059.84
91,601,331.96
Other notes:
Long-term deferred expenses include the molds of Sichuan Yibin Plastic Packaging MaterialsCompany Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan YibinGlobal Gelasi Glass Manufacturing Co., Ltd., which will be amortized in 3 years and 4 years,respectively.
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMBItem
Ending balance Beginning balanceDeductible temporarydifferences
Deferred income taxassets
Deductible temporarydifferences
Deferred income taxassets
Provision for impairment
of assets
62,160,116.40
15,540,029.10
63,573,991.40
15,893,497.85
Unrealized profit ofinternal transaction
459,631,885.88
114,907,971.47
275,304,408.32
68,826,102.08
Payroll payable 3,444,231,749.08
861,057,937.27
2,635,865,912.20
658,966,478.05
Others 663,544,164.64
165,886,041.16
512,694,552.20
128,173,638.05
Total 4,629,567,916.00
1,157,391,979.00
3,487,438,864.12
871,859,716.03
(2) Details about deferred income tax assets which have not been recognized
Unit: RMBItem Ending balance Beginning balanceDeductible temporary differences 9,104,208.09
4,445,022.47
Deductible losses 271,450,834.30
276,591,011.98
Total 280,555,042.39
281,036,034.45
Note: Due to the uncertainty of whether sufficient taxable income will be obtained in the future,deductible temporary differences and deductible losses of deferred income tax assets are notrecognized.
(3) Deductible losses of deferred income tax assets which have not been recognized will
become due in the following years
Unit: RMBYear Ending amount Beginning amount RemarksYear 2019
31,643,176.65
Year 2020 4,604,961.02
16,170,861.31
Year 2021 24,902,925.05
26,066,687.31
Year 2022 90,071,724.12
91,589,312.45
Year 2023 101,698,424.52
111,120,974.26
Year 2024 50,172,799.59
Total 271,450,834.30
276,591,011.98
--
16. Other non-current assets
Whether new revenue standards have been implemented
□ Yes √ No
Unit: RMBItem Ending balance Beginning balanceAdvances of progress payment forinformation system construction
165,284,283.25
51,231,242.34
Total 165,284,283.25
51,231,242.34
17. Notes payable
Unit: RMBType Ending balance Beginning balanceBank acceptance bill 419,485,425.61
413,918,369.11
Total 419,485,425.61
413,918,369.11
Total amount of notes payable which became matured but unpaid at the end of current period isRMB 0.00.
18. Accounts payable
(1) Presentation of accounts payable
Unit: RMBItem Ending balance Beginning balance
Accounts payable 3,257,672,975.56
3,152,374,810.72
Total 3,257,672,975.56
3,152,374,810.72
(2) Significant accounts payable over 1 year
Unit: RMBItem Ending balance
Reason for outstanding or carrying
forwardProject payment 32,617,639.32
Goods payment 11,048,910.39
Total 43,666,549.71
--
19. Accounts received in advance
Whether new revenue standards have been implemented
□ Yes √ No
(1) Presentation of accounts received in advance
Unit: RMBItem Ending balance Beginning balanceAccounts received in advance 12,530,706,854.77
6,706,735,898.48
Total 12,530,706,854.77
6,706,735,898.48
(2) Significant accounts received in advance over 1 year
Unit: RMBItem Ending balance
Reason for outstanding or carrying
forwardProceeds from sales of liquors 53,085,975.64
Total 53,085,975.64
--
20. Payroll payable
(1) Presentation of payroll payable
Unit: RMBItem Beginning balance
Increase in current
period
Decrease in current
period
Ending balanceI. Short-termcompensation
2,764,096,662.52
5,702,688,970.41
4,871,913,115.97
3,594,872,516.96
II. Post-employmentbenefits - definedcontribution plans
5,198,847.67
760,960,193.32
766,144,828.14
14,212.85
III. Termination benefits
9,236,177.31
9,236,177.31
Total 2,769,295,510.19
6,472,885,341.04
5,647,294,121.42
3,594,886,729.81
(2) Presentation of short-term compensation
Unit: RMBItem Beginning balance
Increase in currentperiod
Decrease in currentperiod
Ending balance
1. Salaries, bonuses,
allowances andsubsidies
2,685,041,362.81
4,765,207,410.32
3,919,993,334.58
3,530,255,438.55
2. Employee benefits
234,231,124.03
234,231,124.03
3. Social insurance
charges
155,091.15
283,850,676.37
283,851,088.87
154,678.65
Including: Medicalinsurance premium
154,820.64
231,109,956.13
231,110,290.43
154,486.34
Industrial injuryinsurance premium
166.15
36,719,296.41
36,719,355.11
107.45
Birth insurancepremium
104.36
16,021,423.83
16,021,443.33
84.86
4. Housing fund 13,248,883.00
329,108,272.00
321,296,371.00
21,060,784.00
5. Labor union
expenditure andpersonnel educationalfund
65,651,325.56
90,291,487.69
112,541,197.49
43,401,615.76
Total 2,764,096,662.52
5,702,688,970.41
4,871,913,115.97
3,594,872,516.96
(3) Presentation of defined contribution plans
Unit: RMBItem Beginning balance
Increase in current
period
Decrease in currentperiod
Ending balance
1. Basic pension
insurance
14,951.95
595,599,779.97
595,600,519.07
14,212.85
2. Unemployment
insurance premium
23.30
19,066,690.90
19,066,714.20
3. Corporate pension
contribution
5,183,872.42
146,293,722.45
151,477,594.87
Total 5,198,847.67
760,960,193.32
766,144,828.14
14,212.85
21. Tax payable
Unit: RMBItem Ending balance Beginning balanceVAT 839,852,597.96
1,070,214,491.06
Consumption tax 1,830,800,710.07
1,641,542,786.19
Corporate income tax 5,001,143,551.02
2,203,429,719.44
Individual income tax 13,250,079.02
14,016,111.56
Urban maintenance and construction
tax
116,343,916.81
86,843,135.42
Property tax 369,637.06
275,085.16
Stamp duty 645,760.98
864,554.47
Land use tax 1,079,906.23
693,496.77
Education surcharge 81,365,635.62
37,344,381.88
Local education surcharge 54,248,855.59
24,901,353.38
Environmental protection tax 18,621.28
10,382.41
Resource tax 47,317.20
Total 7,939,166,588.84
5,080,135,497.74
Other notes:
The taxes of the Company depend on the amount verified and imposed by the tax authorities.
22. Other payables
Unit: RMBItem Ending balance Beginning balanceOther payables 2,292,680,733.51
2,585,355,687.52
Total 2,292,680,733.51
2,585,355,687.52
(1) Other payables
1) Presentation of other payables by nature
Unit: RMBItem Ending balance Beginning balanceMarket support expenses (including marketdevelopment expense, publicity expense, branding
expense)
1,178,396,467.55
1,863,905,084.82
Deposit 703,073,760.13
609,586,594.65
Accrued expenses 230,340,302.12
Money collected or paid for another 66,271,527.52
42,858,069.91
Claims from safeguarding rights 42,291,712.18
38,692,262.54
Others 72,306,964.01
30,313,675.60
Total 2,292,680,733.51
2,585,355,687.52
2) Significant other payables over 1 year
Unit: RMBItem Ending balance
Reason for outstanding or carrying
forwardDeposit 64,380,280.00
Total 64,380,280.00
--
23. Deferred income
Unit: RMBItem Beginning balance
Increase in currentperiod
Decrease in current period Ending balance CauseGovernment subsidy 267,010,618.22
13,860,000.00
14,545,249.82
266,325,368.40
Total 267,010,618.22
13,860,000.00
14,545,249.82
266,325,368.40
--
Projects involving government subsidies:
Unit: RMBLiabilities Beginning balance
Increase in current |
periodAmount of subsidy
Amountrecognized asnon-operating
revenue incurrent year
Amountrecognized asother incomes
Amount
offset
against costs |
andexpenses incurrent year
Otherchanges
Ending balance
Asset-related/income-related90-Thousand-Ton Pottery Jar Aging Spirit RoomTechnical Innovation Project (Phase I)
187,954,666.78
6,712,666.56
181,242,000.22
Asset-relatedBrewery Wastewater Comprehensive TreatmentProject
16,200,000.00
750,000.00
15,450,000.00
Asset-relatedWastewater Comprehensive Treatment andTransformation Project
14,133,333.31
333,333.36
13,799,999.95
Asset-relatedSonggong River (Wuliangye Section)Comprehensive Treatment Project
10,730,000.00
178,833.36
10,551,166.64
Asset-relatedWuliangye Industrial Park Construction Project 10,000,000.00
10,000,000.00
Asset-related300-Thousand-
Ton Pottery Jar Aging Spirit Room |
(Phase I)
10,000,000.00
10,000,000.00
Asset-relatedTechnical Upgrading Project of the QualityControl, Quality Inspection and Testing Center
9,613,333.35
343,333.32
9,270,000.03
Asset-relatedWastewater Treatment System Upgrading andRenovation Project
8,959,999.96
320,000.04
8,639,999.92
Asset-relatedTechnical Upgrading Project of the60-Thousand-Ton Maotai-Flavor Liquor PotteryJar Aging Room
2,949,999.80
590,000.04
2,359,999.76
Asset-relatedCoal-to-Gas Energy Conservation and EmissionReduction Project (Phase I)
2,933,035.02
1,099,999.80
1,833,035.22
Asset-related
Coal-to-Gas Energy Conservation and EmissionReduction Project (Phase II)
500,000.00
500,000.00
Asset-relatedShiergoubao Production Line TechnicalUpgrading Project
480,000.00
120,000.00
360,000.00
Asset-relatedDust Removal System Renovation Project of the510 Workshop Environmental Protection Boiler
656,250.00
656,250.00
Asset-related503 Workshop Coal-to-Gas Project 600,000.00
600,000.00
Asset-relatedIndustrial development funds 1,000,000.00
1,000,000.00
Income-relatedInformatization and big data application
1,000,000.00
270,833.34
729,166.66
Income-relatedOverall Anti-counterfeit Package Project Usingthe Single-Chip Dual-Band REID Technology
100,000.00
100,000.00
Income-relatedTalent subsidies from the Science andTechnology Bureau
700,000.00
300,000.00
1,000,000.00
Income-relatedSubsidy for national green plant of 2018
500,000.00
500,000.00
Income-relatedProvincial special funds for intellectual property
90,000.00
90,000.00
Income-relatedSpecial funds for application of cloud-terminal
intelligent spectral data analysis in the process of |
fermentation of fermented grains
770,000.00
770,000.00
Income-relatedSpecial funds for research on making special
grains based on biological transformation and itsapplication
organic fertilizer for brewing sorghum using spent |
700,000.00
700,000.00
Income-relatedTotal 267,010,618.22
13,860,000.00
14,545,249.82
266,325,368.40
24. Capital stock
Unit: RMBBeginning balance
Increase/decrease (+, -)
Ending balanceIssuance ofnew shares
Bonusshare
of publicreserve fund
Others Sub-totalSum ofshares
3,881,608,005.00
Capitalization | |||||
3,881,608,005.00
25. Capital reserve
Unit: RMBItem Beginning balance
Increase in current
period
Decrease in current
period
Ending balanceCapital premium(capital stock premium)
2,682,523,702.98
2,682,523,702.98
Other capital reserve 123,383.17
123,383.17
Total 2,682,647,086.15
2,682,647,086.15
26. Surplus reserve
Unit: RMBItem Beginning balance
Increase in current
period
Decrease in current
period
Ending balanceStatutory surplus
reserves
13,120,411,030.42
2,971,785,992.59
16,092,197,023.01
Total 13,120,411,030.42
2,971,785,992.59
16,092,197,023.01
27. Undistributed profit
Unit: RMBItem Current period Previous periodUndistributed profit at the end of previousperiod before adjustment
43,802,603,958.99
37,675,282,021.74
Undistributed profit at the beginning of theperiod after adjustment
43,802,603,958.99
37,675,282,021.74
Plus: Net profits attributable to the owners ofparent company in current period
17,402,164,190.16
13,384,246,683.60
Less: Appropriation of statutory surplusreserves
2,971,785,992.59
2,210,834,339.85
Common share dividends payable 6,598,733,608.50
5,046,090,406.50
Ending undistributed profit 51,634,248,548.06
43,802,603,958.99
Details of undistributed profit at the beginning of the adjustment period:
1). The beginning undistributed profit is adjusted by RMB 0.00 due to the retroactive adjustment
according to the Accounting Standards for Business Enterprise and relevant new provisions.
2). The beginning undistributed profit is adjusted by RMB 0.00 due to changes in accounting
policies.
3). The beginning undistributed profit is adjusted by RMB 0.00 due to correction of major
accounting errors.
4). The beginning undistributed profit is adjusted by RMB 0.00 due to changes in the combination
scope arising from the same control.
5). The beginning undistributed profit is adjusted by RMB 0.00 in total due to other adjustments.
28. Operating revenue and operating cost
Unit: RMBItem Amount in current period Amount in previous period
Revenue Cost Revenue CostPrimary business 49,857,555,489.83
12,578,575,730.65
39,823,798,827.75
10,329,058,497.08
Other businesses 260,550,387.31
223,684,216.69
206,390,772.12
157,724,437.19
Total 50,118,105,877.14
12,802,259,947.34
40,030,189,599.87
10,486,782,934.27
Whether new revenue standards have been implemented
□ Yes √ No
29. Tax and surcharges
Unit: RMBItem Amount in current period Amount in previous periodConsumption tax 5,574,554,509.16
4,651,541,239.20
Urban maintenance and construction
tax
765,970,059.85
680,310,364.67
Education surcharge 328,844,515.77
292,838,686.09
Resource tax 372,276.20
350,018.00
Property tax 28,945,716.04
24,393,707.24
Land use tax 50,020,995.02
49,560,403.34
Vehicle and vessel use tax 13,797.41
15,714.77
Stamp duty 13,660,117.60
13,132,633.02
Local education surcharge 219,840,795.95
195,225,790.76
Environmental protection tax 2,120,319.55
1,128,741.48
Total 6,984,343,102.55
5,908,497,298.57
30. Selling expenses
Unit: RMBItem Amount in current period Amount in previous periodComprehensive selling expenses (includingmarket development expense, publicityexpense, branding expense, payroll, etc.)
4,349,034,516.43
3,282,228,558.55
Freight and miscellaneous expenses 353,946,381.65
303,508,206.74
Travel expense 110,726,346.05
59,015,064.71
Others 171,872,092.64
133,681,845.01
Total 4,985,579,336.77
3,778,433,675.01
31. Administrative expenses
Unit: RMBItem Amount in current period Amount in previous periodComprehensive expenses of the Company(including travel, office, expenses of the board ofdirectors, employee
labor protection appliances, etc)
1,148,066,122.90
remuneration, labor insurance, |
991,012,355.66
Rents 357,228,294.55
348,396,193.45
Trademark and logo royalties 580,070,408.13
480,734,618.78
Comprehensive service fee 67,614,607.22
85,711,430.00
Others 502,367,715.29
434,644,107.55
Total 2,655,347,148.09
2,340,498,705.44
32. Research and development expense
Unit: RMBItem Amount in current period Amount in previous periodComprehensive expenses (including travel, office,payroll, labor insurance, labor protection
appliances, etc.)
53,752,944.91
41,073,386.44
Material expenses 31,810,442.56
14,758,839.52
Product design fees 14,787,253.09
13,121,087.51
Depreciation and amortization expenses 7,051,081.97
8,268,904.73
Others 18,958,698.58
6,860,288.06
Total 126,360,421.11
84,082,506.26
33. Financial expenses
Unit: RMBItem Amount in current period Amount in previous periodInterest expenditure
Less: Interest revenue 1,416,398,912.72
1,081,572,031.13
Exchange loss 134,662.81
257,772.41
Less: Exchange gains 202,724.12
519,065.02
Expenditure for discount on notes
5,958,156.26
Service charge of financial institutions 1,224,741.74
1,035,827.58
Others -15,503,633.45
-10,171,423.75
Total -1,430,745,865.74
-1,085,010,763.65
34. Other incomes
Unit: RMBSources of other incomes Amount in current period Amount in previous period
Government subsidy 130,434,159.51
88,540,102.95
Tax refunds 29,278,082.30
17,688,897.86
Total 159,712,241.81
106,229,000.81
Notes:
1.Refer to the Note “VII. 46. Government subsidy” for details of government subsidies.
2. The tax refunds are the VAT refunds received by the Company, refer to the Note “VI. Taxes, 2.
Tax preference”.
35. Investment income
Unit: RMBItem Amount in current period Amount in previous periodLong-term equity investment incomeaccounted by equity method
92,500,753.05
100,864,555.05
Investment income from disposal of
long-term equity investment
0.22
Total 92,500,753.05
100,864,555.27
36. Credit impairment loss
Unit: RMBItem Amount in current period Amount in previous periodBad debt loss of other receivables -644,388.36
Bad debt loss of accounts receivable -489,191.91
Total -1,133,580.27
37. Asset impairment loss
Whether new revenue standards have been implemented
□ Yes √ No
Unit: RMBItem Amount in current period Amount in previous periodI. Bad debt loss
-4,549,791.15
II. Inventory falling price loss -3,020,763.91
-3,180,521.74
VII. Fixed asset impairment losses
-3,149,115.00
Total -3,020,763.91
-10,879,427.89
38. Gain from disposal of assets
Unit: RMBSource of gain from disposal of assets
Amount in current period Amount in previous periodDisposal of non-current assets 2,779,400.03
5,273,892.02
Total 2,779,400.03
5,273,892.02
39. Non-operating revenue
Unit: RMBItem Amount in current period Amount in previous period
Amounts recorded into currentnon-recurring profit or lossGovernment subsidy
300,000.00
Penalty revenue 5,986,339.09
9,166,517.93
5,986,339.09
Gains from scrap ofnon-current assets
909,663.24
946,124.80
909,663.24
Others 22,994,270.32
33,390,478.93
22,994,270.32
Total 29,890,272.65
43,803,121.66
29,890,272.65
Government subsidy recognized in current profit or loss:
Unit: RMBSubsidy items
Grantedby
Reason
forgranting
Nature and
type
Does thesubsidy
affect
current profit |
or loss
specialsubsidy
Amount
Whether | in current |
period
Amount in
previous
period
Asset-related/Income-related
governmentsubsidy
Other fragmentary |
300,000.00
Income-relatedTotal
300,000.00
40. Non-operating expenditure
Unit: RMBItem Amount in current period Amount in previous period
Amounts recorded into current
non-recurring profit or lossDonations 147,731,056.86
126,393,193.31
147,731,056.86
Penalty expenditure 266,281.96
2,554,160.76
266,281.96
Loss on scrap of non-
current |
assets
5,260,675.33
2,791,521.65
5,260,675.33
Abnormal loss 29,395.82
29,395.82
Others 16,390,656.88
23,634,853.92
16,390,656.88
Total 169,678,066.85
155,373,729.64
169,678,066.85
Other notes:
Donations mainly include the donation of RMB 147.3729 million to Sichuan Wuliangye CharitableFoundation, among which RMB 100 million is for the rural revitalization and targeted poverty alleviationproject, RMB 20 million is for earthquake relief of Changning County, RMB 7 million is for the WuliangyeEducation Incentive Infrastructure Project of Sichuan University of Science and Engineering, RMB 7million is for the Education Incentive Award Project of the Education Development Foundation ofSichuan University of Science and Engineering, RMB 5.465 million is for Yibin Education Foundation,RMB 3.27 million is for the acrobatics education poverty alleviation project of Yibin, RMB 2 million is forthe talent development project of Xinlong County, Yajiang County, Ganzi Tibetan Autonomous Prefecture,RMB 1.2495 million is for the poverty alleviation project of Qingshanyan Village of Xingwen County, andRMB 1.3884 million is for relief of the earthquake occurred on December 16 in Xingwen County.
41. Income tax expenses
(1) List of income tax expenses
Unit: RMBItem Amount in current period Amount in previous period
Current income tax expenses 6,163,289,027.89
4,760,159,182.00
Deferred income tax expenses -285,532,262.97
-191,986,652.28
Total 5,877,756,764.92
4,568,172,529.72
(2) Accounting profit and income tax expense adjustment process
Unit: RMBItem Amount in current periodTotal profit 24,106,012,043.53
Income tax expense calculated with statutory/applicable tax rates 6,026,503,010.88
Impact of different tax rates applicable to subsidiaries -83,191,083.19
Impact on adjustment of income tax in previous periods -36,969,244.42
Impact of nontaxable revenue -23,125,188.26
Impact of non-deductible costs, expenses and losses 1,154,078.99
Impact of deductible losses of deferred income tax assets whichhave not been recognized in the previous period
-5,917,450.16
Impact of deductible temporary differences or deductible losses ofdeferred income tax assets which have not been recognized incurrent period
13,707,996.30
Impact of weighted deduction for salary of the disabled -11,594,238.14
Impact of 10% tax rate for revenue from steam -545,473.86
Impact of weighted deduction for research and developmentexpenses
-205,016.27
Impact of one-time deduction of fixed assets -2,060,626.95
Income tax expenses 5,877,756,764.92
42. Items of cash flow statement
(1) Other cash received relating to operating activities
Unit: RMBItem Amount in current period Amount in previous periodInterest revenue 1,042,012,585.56
853,819,574.81
Deposits and government subsidies
received
421,764,044.99
383,418,320.47
Total 1,463,776,630.55
1,237,237,895.28
(2) Other cash paid relating to operating activities
Unit: RMBItem Amount in current period Amount in previous periodExpenses relating to selling 1,766,874,668.53
1,300,737,190.29
Comprehensive service fee 60,889,059.16
85,711,430.00
Trademark and logo royalties 477,571,873.51
480,734,618.78
Rents 337,348,167.14
348,396,193.45
Deposits, current accounts and otherout-of-pocket expenses paid
722,835,412.55
754,533,479.42
Total 3,365,519,180.89
2,970,112,911.94
(3) Other cash payments relating to financing activities
Unit: RMBItem Amount in current period Amount in previous period
and interest
Return of deposit for share subscription |
22,092,404.60
Total
22,092,404.60
43. Supplementary Information to Cash Flow Statement
(1) Supplementary Information to Cash Flow Statement
Unit: RMBSupplementary information Amount of current period Amount of previous period
1. Reconciliation from net profits to cash
flows from operating activities:
-- --Net profit 18,228,255,278.61
1. Reconciliation from net profits to cash flows from operating activities: | |
14,038,650,126.48
Plus: Provision for impairment of assets 3,436,827.62
-4,125,897.17
Fixed assets depreciation, oil and gas |
assets depletion, and productive
418,406,696.04
biological assets depreciation |
484,853,435.67
Amortization of intangible assets 19,235,638.90
15,165,124.85
Amortization of long-term deferred expenses |
52,056,059.84
63,080,998.72
Loss from disposals of fixed assets, |
intangible assets and other long-term
-2,779,400.03
assets (gains indicated with “-”) |
-5,273,892.02
Scrap loss of fixed assets (gains indicated with “-”) |
4,351,012.09
1,845,396.85
Financial expenses (gains indicated with “-”) |
-63,661.42
-164,139.95
Investment loss (gains indicated with “-”) -92,500,753.05
-100,864,555.27
Decrease in deferred income tax assets (increase indicated with “-”) |
-285,532,262.97
-191,986,652.28
Decrease in inventory (increase indicated with “-”) |
-1,886,461,774.33
-1,226,493,031.60
Decrease in operating receivables (increase indicated with “-”) |
-2,354,601,239.25
-5,228,455,859.11
Increase in operating payables (decrease indicated with “-”) |
9,008,269,618.61
4,471,127,979.73
Net cash flows from operating activities 23,112,072,040.66
12,317,359,034.90
2. Significant investment and financing activities not involving cash: |
-- --
-- --Ending balance of cash 63,138,829,242.88
3. Net change in cash and cash equivalents: | |
48,888,727,143.63
Less: Beginning balance of cash 48,888,727,143.63
40,529,000,014.21
Plus: Ending balance of cash equivalents
65,304,080.91
71,321,754.32
Less: Beginning balance of cash equivalents |
71,321,754.32
62,803,391.57
Net increase in cash and cash equivalents |
14,244,084,425.84
8,368,245,492.17
(2) Composition of cash and cash equivalents
Unit: RMBItem Ending balance Beginning balanceI. Cash 63,138,829,242.88
48,888,727,143.63
Including: Cash on hand 28,179.40
48,306.24
Bank deposit readily available forpayment
63,138,797,874.22
48,888,675,659.23
Other cash and cash equivalents readilyavailable for payment
3,189.26
3,178.16
II. Cash equivalents 65,304,080.91
71,321,754.32
Including: Deposit of notes maturedwithin three months
65,304,080.91
71,321,754.32
III. Ending balance of cash and cashequivalents
63,204,133,323.79
48,960,048,897.95
44. Assets with restricted ownership or use right
Unit: RMBItem Ending book value Reasons for limitationCash and cashequivalents
99,996,480.91
Deposit of bank acceptance bill of RMB99,754,080.91 and other deposits of RMB242,400.00.Accounts receivable
financing
144,514,604.00
Pledge of bank acceptance billTotal 244,511,084.91
--
45. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMBItem
Ending balance of foreign
currency
Conversion exchange rate
Ending balance converted to
RMBCash and cash equivalents -- --
Ending balance converted to |
Including: USD 653,701.62
6.9762
4,560,353.24
(2) Note on overseas operating entities, including disclosure of overseas primary business
places, bookkeeping currency and selection basis for important overseas operating entities, anddisclosure of the reasons for any change in the bookkeeping currency.
□ Applicable √ Not applicable
46. Government subsidy
(1) Basic information of government subsidies
Unit: RMBType Amount Presented items
Amounts recorded into current profit or loss | ||
90-Thousand-Ton Pottery Jar Aging Spirit Room Technical Innovation Project (Phase I) |
201,380,000.00
Deferred income 6,712,666.56
Brewery Wastewater Comprehensive Treatment Project |
22,500,000.00
Deferred income 750,000.00
Songgong River (Wuliangye Section) Comprehensive Treatment Project |
10,730,000.00
Deferred income 178,833.36
Technical Upgrading Project of the Quality Control, Quality Inspection and Testing Center |
10,300,000.00
Deferred income 343,333.32
Wastewater Comprehensive Treatment and Transformation Project |
10,000,000.00
Deferred income 333,333.36
Wuliangye Industrial Park Construction Project 10,000,000.00
Deferred income
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) |
10,000,000.00
Deferred income
Wastewater Treatment System Upgrading and Renovation Project |
9,600,000.00
Deferred income 320,000.04
Dust Removal System Renovation Project of the 510 Workshop Environmental Protection Boiler |
7,406,250.00
Deferred income 656,250.00
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase I) |
6,600,000.00
Deferred income 1,099,999.80
Technical Upgrading Project of the 60-Thousand-Ton Maotai-Flavor Liquor Pottery Jar Aging Room |
5,900,000.00
Deferred income 590,000.04
Shiergoubao Production Line Technical Upgrading Project |
1,200,000.00
Deferred income 120,000.00
Special funds for application of cloud-terminal |
intelligent spectral data analysis in the process of
770,000.00
fermentation of fermented grains |
Deferred income 770,000.00
Special funds for research on making special organic |
fertilizer for brewing sorghum using spent grainsbased on biological transformation and its
700,000.00
application |
Deferred income 700,000.00
Informatization and big data application 1,000,000.00
Deferred income 270,833.34
Industrial development funds 1,000,000.00
Deferred income
Talent subsidies from the Science and Technology Bureau |
1,000,000.00
Deferred income 1,000,000.00
503 Workshop Coal-to-Gas Project 600,000.00
Deferred income 600,000.00
Subsidy for national green plant of 2018 500,000.00
Deferred income
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase II) |
500,000.00
Deferred income
Overall Anti-counterfeit Package Project Using the Single-Chip Dual-Band REID Technology |
100,000.00
Deferred income 100,000.00
Provincial special funds for intellectual property 90,000.00
Deferred income
Funds for supporting enterprises settling in the |
industrial headquarter base from Yibin Lingang
58,380,057.00
Economic and Technological Development Zone |
Other incomes 58,380,057.00
VAT deduction 18,785,891.57
Other incomes 18,785,891.57
Subsidy for investment promotion 13,573,925.31
Other incomes 13,573,925.31
Small and medium enterprises supporting funds from |
Hebei Linzhang Economic Development Zone
7,481,992.00
Administration Committee |
Other incomes 7,481,992.00
Subsidies of 2018 for several policies of fastening |
the construction of modern powerful industrial citiesand supporting the transformation, upgrading and
3,440,000.00
development of the park |
Other incomes 3,440,000.00
Funds for construction of Wuguchun spirit room 2,700,000.00
Other incomes 2,700,000.00
2,117,200.00
Subsidy for energy conservation, emission reduction and technological innovation |
Other incomes 2,117,200.00
Funds for supporting the settlement of enterprises with zero-balance accounts |
1,996,900.00
Other incomes 1,996,900.00
Subsidy for increment of gas consumption 1,555,000.00
Other incomes 1,555,000.00
Special fund for talent development 1,547,600.00
Other incomes 1,547,600.00
Project of overall upgrading of the one-core |
dual-band RFID anti-counterfeit package,technological upgrading of production line, and theresearch, development, design and application of
1,200,000.00
new environment-friendly packaging materials |
Other incomes 1,200,000.00
Rewards to executives 769,100.00
Other incomes 769,100.00
Refund of charges of individual income tax 673,812.10
Other incomes 673,812.10
Industrial development funds of 2018 650,000.00
Other incomes 650,000.00
Subsidy for the standard construction of green Yibin of 2018 |
650,000.00
Other incomes 650,000.00
Other fragmentary government subsidy 367,431.71
Other incomes 367,431.71
Total 427,765,159.69
130,434,159.51
(2) Return of government subsidies
□ Applicable √ Not applicable
VIII. Changes in consolidation scope
1. Business combination involving enterprises not under the same control
There is no business combination involving enterprises not under the same control.
2. Business combination involving enterprises under the same control
There is no business combination involving enterprises under the same control.
3. Counter purchase
There is no subsidiary acquired by counter purchase during the reporting period.
4. Disposal of subsidiary
There is no disposal of subsidiary during the reporting period.
5. Changes in consolidation scope for other reasons
Explain the changes in consolidation scope for other reasons (such as, establishment of newsubsidiary, liquidation of subsidiaries, etc.) and relevant information:
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the fifthboard of directors of the Company, jointly funded and established "Wuliang NongXiang Series BaijiuYibin Co., Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95million, taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5%of the registered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. is included in theconsolidation scope of the Company since its establishment.IX. Interests in other entities
1. Interests in subsidiaries
(1) Compositions of the Group
Name of subsidiary
Primarybusinessplace
address
Nature ofbusiness
Shareholding proportion
Way ofacquisitionDirectly IndirectlySichuan Yibin Wuliangye Winery Co., Ltd. Yibin Yibin Manufacturing 99.00% 0.99% EstablishmentYibin Wuliangye Liquor Sales Co., Ltd. Yibin Yibin Business 95.00% Establishment
RegisteredYibin Wuliang Tequ and Touqu Brand MarketingCo., Ltd.
Yibin Yibin Business 95.00% Establishment. Yibin Yibin Business 95.00% Establishment
Yibin Yibin Business 95.00% Establishment
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. |
Yibin Yibin Business 99.00% 0.95% EstablishmentYibin Jiangjiu Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin Yibin Manufacturing 51.00% EstablishmentSichuan Jinwuxin Technology Co., Ltd. Yibin Yibin Business 51.00%
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. | ||
Business |
combination
involvingenterprises notunder the
same control | ||
Sichuan Jiebeike Environmental Technology Co., Ltd. |
Yibin Yibin Engineering 26.01% EstablishmentYibin Changjiangyuan Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% EstablishmentYibin Changjiangyuan Trade Co., Ltd. Yibin Yibin Business 100.00% EstablishmentYibin Changjiangyuan Brewery Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin Yibin Agriculture 100.00% Establishment
Yibin Wuliangye Organic Agriculture Development Co., Ltd. |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. |
Yibin Yibin Manufacturing 90.00% EstablishmentYibin Xianlin Liquor Marketing Co., Ltd. Yibin Yibin Business 90.00% EstablishmentYibin Wuliangye Xinshengdai Liquor Co., Ltd. Yibin Yibin Business 42.30% Establishment
Yibin Yibin Manufacturing 97.00% 1.53% EstablishmentYibin Xinxing Packaging Co., Ltd. Yibin Yibin Business 98.53% EstablishmentSichuan Yibin Plastic Packaging MaterialsCompany Limited
Yibin Yibin Manufacturing 100.00%
Sichuan Yibin Wuliangye Jingmei Printing Co.,Ltd.Business
combination
involvingenterprises not
under the same control |
Sichuan Yibin Global Group Shenzhou GlassCo., Ltd.
Yibin Yibin Manufacturing 100.00%
combination
involvingenterprises not
under the same control | ||
Sichuan Yibin Global Gelasi Glass Manufacturing |
Co., Ltd.
Yibin Yibin Manufacturing 100.00%
combination
involvingenterprises not
under the same control |
Sichuan Yibin Push Group 3D Co., Ltd. Yibin Yibin Manufacturing 100.00%
combination
involvingenterprises not
under the same control | ||
Guangdong Foshan Plastic Packaging Materials Company Limited |
Foshan Foshan Manufacturing 100.00% Establishment
Yibin Yibin Investment 95.00% EstablishmentWuhou Cultural Development Co., Ltd. Beijing Beijing
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd. | ||
Cultural industry |
70.30% Establishment
Yibin Zhenwushan Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% EstablishmentYibin Shiji Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% EstablishmentYibin Cuipingshan Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% EstablishmentWuliangye Dashijie (Beijing) Trade Co., Ltd. Beijing Beijing Business 95.00% EstablishmentHandan Yongbufenli Liquor Co., Ltd. Handan Handan Manufacturing 51.00% EstablishmentLinzhang Desheng Wine Trade Co., Ltd. Handan Handan Business 51.00% Establishment
Handan Yongbufenli Sales Co., Ltd. Handan Handan Business 51.00% EstablishmentHuaibin Wubin Consultation Service Co., Ltd. Huaibin Huaibin Consultation 100.00%
combinationinvolvingenterprises not
under the same control | ||
Wuguchun Jiu Ye Co., Henan. China |
Huaibin Huaibin Manufacturing 11.03% 40.00%
combination
involvingenterprises not
under the same control |
Huaibin Tenglong Trade Co., Ltd. Huaibin Huaibin Business 51.03% EstablishmentWU JIU YE SALES CO., HENAN. China Huaibin Huaibin Business 51.03% Establishment
Yibin Yibin
Sichuan Wuliangye Culture Tourism Development Co., LTD | Tourism industry |
80.00% Establishment
Sichuan Wuliangye Tourist Agency Co., Ltd. Yibin Yibin
80.00% Establishment
Yibin Wuliangye Creart Co., Ltd. Yibin Yibin Business 45.00% EstablishmentWuliang NongXiang Series Baijiu Yibin Co., Ltd. Yibin Yibin Business 95.00% EstablishmentNote on the difference between shareholding proportion and proportion of votes in subsidiary:
As reviewed and approved by the 5th board of directors of the Company, the Company, BeijingSparkle Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and ChangjiangGrowth Capital Co., Ltd. jointly funded and established Creart Company, of which the registered capitalis RMB 100 million. The Company contributes RMB 45 million, taking up 45% of the registered capital.On December 9, 2014, Shanghai Yue Shan Investment Management Co., Ltd. and the Companyentered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through mutualnegotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company formanagement of the 6% equity held by it in Creart Company from the effective date of the agreement tillthe duration of Creart Company. The Company will be entitled to the right of management of ShanghaiYue Shan Investment Management Co., Ltd. in Creart Company and the voting right at the shareholdermeetings of Creart Company. The Company holds 51% of the voting rights at shareholder meetings ofCreart Company in total, and therefore Creart Company is included in the consolidated statements.As resolved by the shareholder meeting of Creart Company on February 23, 2018, ChangjiangGrowth Capital Co., Ltd. transfered 11% of the equity to Shanghai Yue Shan Investment ManagementCo., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; asresolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle InvestmentCo., Ltd. transfered 20% of the equity to Beijing Sparkle Hengye Education and Cultural DevelopmentCo., Ltd.; after the said equity transfer, the Company still holds 51% of the voting right at shareholdermeetings of Creart Company, and therefore it is included in the consolidated statements.The basis of controlling the invested company even if holding half or less than half voting rights andnot controlling the invested company even if holding more than half voting rights:
1. As reviewed and approved by the 5th board of directors of the Company, the Company, Beijing
Sparkle Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and ChangjiangGrowth Capital Co., Ltd. jointly funded and established Creart Company, of which the registered capitalis RMB 100 million. The Company contributes RMB 45 million, taking up 45% of the registered capital.On December 9, 2014, Shanghai Yue Shan Investment Management Co., Ltd. and the Companyentered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through mutualnegotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company formanagement of the 6% equity held by it in Creart Company from the effective date of the agreement tillthe duration of Creart Company. The Company will be entitled to the right of management of ShanghaiYue Shan Investment Management Co., Ltd. in Creart Company and the voting right at the shareholdermeetings of Creart Company. The Company holds 51% of the voting rights at shareholder meetings ofCreart Company in total, and therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on February 23, 2018, ChangjiangGrowth Capital Co., Ltd. transfered 11% of the equity to Shanghai Yue Shan Investment ManagementCo., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; as
resolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle InvestmentCo., Ltd. transfered 20% of the equity to Beijing Sparkle Hengye Education and Cultural DevelopmentCo., Ltd.; after the said equity transfer, the Company still holds 51% of the voting right at shareholdermeetings of Creart Company, and therefore it is included in the consolidated statements.
2. On October 26, 2015, as reviewed and adopted by the 10th meeting of the 5th board of
directors of the Company: Sichuan Yibin Wuliangye Group Xianlin Fruit Wine Co., Ltd. (which had beenrenamed as Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. in 2019), a controlling subsidiary of theCompany and contributing RMB 14.1 million (taking up 47% of the equity), Yibin Guotai Commerce andTrade Co.,Ltd. (which is now Yibin Guotai Supply Chain Management Co., Ltd.) and contributing RMB
11.4 million (taking up 38% of the equity), and Guangzhou Jude Trade Co., Ltd., contributing RMB 4.5
million (taking up 15% of the equity), jointly established “Yibin Wuliangye Xinshengdai Liquor Co., Ltd.”(Hereinafter referred to as “Xinshengdai Company”), of which the registered capital is RMB 30 million.Registration of Xinshengdai Company was completed on July 11, 2016. Its registered capital is RMB 30million. The board of directors of Xingshengdai Company consists of 5 directors. The Company holds 2/3of the voting rights in it, and therefore it is included in the consolidated statements.
(2) Important non-wholly owned subsidiaries
Unit: RMBName of subsidiary
Minority shareholdersShareholding proportion
Current profits and losses
attributable to minorityshareholders
Current dividends declared tominority shareholders
Ending balance of minority equityYibin Wuliangye Liquor Sales Co.,Ltd.
5.00%
764,461,060.81
543,507,232.77
1,056,336,282.57
(3) Main financial information of important non-wholly owned subsidiaries
Unit: RMBName of subsidiary
Ending balanceCurrent assets Non-current assets Total assets Current liabilities
Non-
liabilities
Total liabilitiesYibin Wuliangye Liquor Sales Co.,Ltd.
43,177,094,335.69
current | ||
670,748,625.90
43,847,842,961.59
23,011,738,027.70
23,011,738,027.70
Beginning balanceCurrent assets Non-current assets Total assets Current liabilities
Non-
current
liabilities
Total liabilities34,929,294,074.18
current | ||
600,928,478.35
35,530,222,552.53
19,113,194,179.56
19,113,194,179.56
Unit: RMBName of subsidiary
Amount in current periodOperating revenue Net profit Total comprehensive income
Cash flows from operating
activitiesYibin Wuliangye Liquor Sales Co., Ltd.
46,559,665,282.40
15,289,221,216.27
15,289,221,216.27
17,588,142,720.27
Amount in previous periodOperating revenue Net profit Total comprehensive income
Cash flows from operating
activities37,922,906,848.69
12,077,843,810.83
12,077,843,810.83
10,246,872,045.32
2. Interests in joint venture arrangement or associates
(1) Important joint ventures or associates
Name of joint venture or associate
Primary
place
business | Registered |
address
Nature of business
Shareholdingproportion
Accountingtreatment ofinvestment in
associatesDirectly Indirectly
joint ventures or
Oriental Outlook Media Co., Ltd. Beijing Beijing Advertising industry
49.00%
Equity methodSichuan Yibin Wuliangye GroupFinance Co., Ltd.
Yibin Yibin Financial industry 36.00%
Equity methodYibin Jiamei Intelligent PackagingCo., Ltd.
Yibin Yibin
Packaging andprinting industry
48.28%
Equity method
(2) Main financial information of important associates
Unit: RMB
Ending balance/Amount in current
period
period
Sichuan Yibin Wuliangye Group
Finance Co., Ltd.
Sichuan Yibin Wuliangye Group
Finance Co., Ltd.Total assets 47,753,623,863.80
Beginning balance/Amount in previous
30,371,515,738.92
Total liabilities 44,990,128,067.29
27,855,582,546.77
Equity attributable to the shareholdersof parent company
2,763,495,796.51
2,515,933,192.15
Share of net assets calculatedaccording to the shareholdingproportion
994,858,486.74
905,735,949.18
Book value of equity investment inassociates
994,858,486.74
905,735,949.18
Operating revenue 458,658,749.74
472,863,619.21
Net profit 247,562,604.36
298,813,630.79
Total comprehensive income 247,562,604.36
298,813,630.79
Dividends received from associates incurrent year
36,000,000.00
(3) Main financial information of unimportant joint ventures and associates
Unit: RMB
Ending balance/Amount in current
period
periodAssociates: -- --Total book value of investments 26,920,244.84
Beginning balance/Amount in previous
13,742,029.36
Total amount of the following itemscalculated by shareholding proportion
-- ----Net profit 3,378,215.48
-6,708,352.03
--Total comprehensive income 3,378,215.48
-6,708,352.03
3. Interests in the structured entity that is not included in the consolidated financial statements
Note on structured entity that is not included in the consolidated financial statements: None
X. Related parties and related transactions
1. Note on parent company of the Company
Name of parent company
Registeredaddress
Nature ofbusiness
Registered capital
of the parentcompany in the
Company
Shareholding ratio | Proportion of votes |
of the parentcompany in theCompanyYibin State-Owned Assets
Operation Co., Ltd.
Yibin Investment RMB 1,390 million 35.21% 35.21%Note on parent company of the Company:
Yibin State-Owned Assets Operation Co., Ltd. is a wholly state-owned company funded andestablished by the People’s Government of Yibin City. Legal representative of the company is HanCheng and its registered capital is RMB 1,390 million. Its business scope includes the state-ownedproperty right (including state-owned shares), state-owned assets and state investments as authorizedby the People’s Government of Yibin City. The company, as an investor, conducts capital managementand assets management by holding, shareholding, investment and receiving assignment, transfer,auction, and lease within the limits of authority.Main functions of Yibin State-Owned Assets Operation Co., Ltd. include: First, holding state-ownedequity and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’sGovernment of Yibin City; second, raising funds for key construction projects as a investment andfinancing platform of the People’s Government of Yibin City, and investing in such projects byshareholding and holding; third, promoting the maintenance and appreciation of the value ofstate-owned assets and economic development of the city by capital management and assetsmanagement.Yibin State-Owned Assets Operation Co., Ltd., by administrative transfer of state-owned assets,holds 100% of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls2,128,371,363.00 shares of the Company directly or indirectly, taking up 54.83% of the total capital stockof the Company.The State-owned Assets Supervision and Administration Commission of Yibin MunicipalGovernment is the ultimate controller of the Company.
2. Note on subsidiaries of the Company
Refer to the Note “IX. Interests in other entities” for information about subsidiaries of the Company.
3. Note on joint ventures and associates of the Company
Refer to the Note “IX. Interests in other entities” for information about important joint ventures andassociates of the Company.
Other associates or joint ventures that conducted related party transactions with the Company incurrent period, or formed the balance of related party transactions with the Company in the previousperiods are as follows:
Name of joint venture or associate Relationship with the CompanyOriental Outlook Media Co., Ltd. AssociatesSichuan Yibin Wuliangye Group Finance Co., Ltd. AssociatesYibin Jiamei Intelligent Packaging Co., Ltd. Associates
4. Note on other related parties
Names of other related parties
Sichuan Yibin Wuliangye Group Co., Ltd.
Relationship between other related parties and the Company |
Legal representative of the Company concurrently serves |
as the President (General Manager of Wuliangye Group),and some directors and officers of the Company currently
Sichuan Anji Logistic Group Co., Ltd. Subsidiaries of Wuliangye GroupSichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Yibin Anji Logistic Group Shenzhou Transportation Co., Ltd.
Subsidiaries of Anji Logistic Group Co., Ltd.Yibin Wuliangye Group I&E Co., Ltd. Subsidiaries of Wuliangye GroupSichuan Yibin Push Group 3D Co., Ltd. Subsidiaries of Wuliangye GroupYibin Huanyu Trade Co. Ltd. Subsidiaries of Wuliangye GroupSichuan Yibin Push Mold Co., Ltd. Subsidiaries of Push Group CompanySichuan Push Acetati Company Limited Subsidiaries of Push Group CompanySacred Mountain Molin Group Co., Ltd., Sichuan Subsidiaries of Wuliangye GroupSacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan Subsidiaries of Sacred Mountain Molin CompanyYibin Shengdi Trade Co. Ltd. Subsidiaries of Sacred Mountain Molin CompanyYibin Jinlong Trade Development Corporation Subsidiaries of Wuliangye GroupSichuan Yibin Global Group Co., Ltd. Subsidiaries of Wuliangye GroupSichuan Yibin Licai Group Co., Ltd. Subsidiaries of Wuliangye GroupSichuan Yibin Global Group Tianwo Trade Co., Ltd. Subsidiaries of Global Group CompanySichuan Yibin Wuliangye Group Health Wine Co., Ltd. Subsidiaries of Wuliangye GroupSun Display Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Global Photoelectric Energy Conservation TechnologyCo., Ltd.
Subsidiaries of Global Group CompanySichuan Yibin Push Drive Co., Ltd. Subsidiaries of Push Group CompanyChengdu PUTH Medical Plastics Packaging Co., Ltd. Subsidiaries of Push Group CompanySichuan Yibin Push Building Materials Co., Ltd. Subsidiaries of Push Group CompanyZhanjiang North Push Internal Development Co., Ltd. Subsidiaries of Push Group CompanySichuan Yibin Push Auto Parts Co., Ltd. Subsidiaries of Push Group CompanyPush Information & Automation (Chengdu) Co., Ltd. Subsidiaries of Push Group CompanyChengdu Global Special Glass Manufacturing Co., Ltd. Subsidiaries of Global Group CompanySichuan Zhongke Better Technology Co., Ltd. Subsidiaries of Global Group Company
Yibin Global Photoelectric Energy Conservation TechnologyCo., Ltd.Sichuan Chengdu Push Electromechanical TechnologyResearch Co., Ltd.
Subsidiaries of Push Group
Sichuan Chengdu Push Electromechanical Technology Research Co., Ltd. |
Sichuan Yibin Wuliangye Group Anji Logistic Shipping Co., Ltd. |
Subsidiaries of Anji Logistic Group Co., Ltd.Yibin Ansage International Logistic Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.Yibin Ansage Auto Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.Sichuan Yibin Weilisi Float Glass Manufacturing Co., Ltd. Subsidiaries of Global Group Company
Subsidiaries of Wuliangye GroupSichuan Haida Rubber Group Co., Ltd. Subsidiaries of Wuliangye GroupSichuan Tyre Rubber (Group) Co., Ltd. Subsidiaries of Haida Group CompanySichuan Yibin Push Intelligent Technology Co., Ltd. Subsidiaries of Push Group CompanySichuan Baiweiyuan Food Co., Ltd. Subsidiaries of Wuliangye GroupChengdu Baiweiyuan Co., Ltd. Subsidiaries of BaiweiyuanPUSH NINGJIANG MACHINE TOOL CO.,LTD. Subsidiaries of Push Group CompanyChengdu Huayu Glass Manufacturing Co., Ltd. Subsidiaries of Global Group CompanyChengdu Ningjiang Machine Tool Sales Co., Ltd. Subsidiaries of Push Group CompanyYibin Push Linko Technology Co., Ltd. Subsidiaries of Push Group Company
Sichuan Putian Times Technology Co., Ltd. Subsidiaries of Push Group CompanySichuan Sacred Mountain Hechang Clothing Co., Ltd. Subsidiaries of Sacred Mountain Molin CompanyChengdu Sacred Mountain Clothing Company Subsidiaries of Sacred Mountain Molin CompanyYibin Push Assets Management Co., Ltd. Subsidiaries of Push Group CompanySichuan Ansage Supply Chain Management Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.Sichuan Andaxin Logistic Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.Yibin Global Energy Conservation Service Co., Ltd. Subsidiaries of Global Group CompanyYibin Wuliangye Ecological Brewing Co., Ltd. Subsidiaries of Health Wine Group CompanyChengdu Push Automobile Mold Co., Ltd. Subsidiaries of Push Group CompanyChengdu Wu Liang Ye Grand Hotel Co., Ltd. Subsidiaries of Wuliangye GroupChengdu Puchuan Biomaterials Corporation Subsidiaries of Push Group CompanyYibin Jitai Automobile Sales & Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.Wuming Tea Industry Holding Co., Ltd. Subsidiaries of Wuliangye Group Fund CompanySichuan Linhu Tea Co., Ltd. Subsidiaries of Wuliangye Group Fund CompanyYibin Leitian Agricultural Development Co., Ltd. Subsidiaries of Wuliangye Group Fund CompanySichuan Huansheng Pharmacy Co., Ltd. Subsidiaries of Yibin MedicineSinopharm Group Yibin Medicine Co., Ltd. Subsidiaries of Wuliangye GroupYibin Paper Industry Co., Ltd. Subsidiaries of Wuliangye Group
5. Related transactions
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: RMBRelated parties
Content of related
transaction
Amount in current
period
Transaction
quotaapproved
Amount inprevious period
Whether exceed the transaction quota | |||
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
Raw materials, etc.301,983,377.21
270,592,103.32
Yibin Shengdi Trade Co. Ltd. Packing materials 174,572,272.41
200,245,417.69
Yibin Jinlong Trade Development Corporation |
Raw materials, etc. 290,706,070.30
140,555,177.69
Sichuan Yibin Push Mold Co., Ltd. Molds, raw materials, etc.109,798,846.35
43,753,936.82
Chengdu PUTH Medical Plastics Packaging Co., Ltd. |
Raw materials60,424,484.53
80,735,190.83
Sichuan Yibin Push Group 3D Co., Ltd.
RFID anti-counterfeit labels, etc. |
56,232,156.94
74,458,756.32
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. |
Liquors30,479,352.83
1,613,275.98
Sacred Mountain Molin Group Co., Ltd., Sichuan |
Uniform of exclusive shop 26,945,284.35
Sichuan Yibin Push Drive Co., Ltd. Raw materials, etc. 23,294,806.98
34,745,347.66
Sacred Mountain Molin Group Co., Ltd., Sichuan | Labor protection appliances, etc. |
24,336,543.65
Chengdu Huayu Glass Manufacturing Co., Ltd. |
Raw materials 21,183,258.71
1,024,746.54
Yibin Shengdi Trade Co. Ltd.
Labor protection appliances, etc. |
16,696,955.69
46,333,353.57
Sichuan Putian Times Technology Co., Ltd. |
Slices, paper, etc. 11,196,877.60
20,591,824.63
Wuming Tea Industry Holding Co., Ltd.
Labor protection appliances, etc. |
7,222,346.19
Yibin Wuliangye Group I&E Co., Ltd. Liquors 1,478,570.01
4,016,738.99
Yibin Ansage Auto Service Co., Ltd. Gasoline 1,507,849.01
2,127,027.63
Sacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan |
Raw materials, etc. 1,478,897.85
137,456.65
Sichuan Huansheng Pharmacy Co., Ltd. Medicine 1,437,983.40
Sichuan Yibin Push Building Materials Co., Ltd. |
Raw materials, etc. 650,635.50
4,331,717.61
Yibin Global Energy Conservation Service Co., Ltd. |
Oxygen 594,774.05
3,657,643.70
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
Raw materials, etc. 110,639.79
525,635.33
Sichuan Ansage Supply Chain Management Co., Ltd. |
Grains
36,034,759.17
Henan Anhuai Grain Industry Co., Ltd. Grains
11,970,731.15
Yibin Ansage International Logistic Co., Ltd. |
Liquors
4,395,772.50
Zhanjiang North Push Internal Development Co., Ltd. |
Raw materials
1,743,589.74
Yibin Ansage Auto Service Co., Ltd.
Fragmentary materials, labor protection appliances, etc. |
457,969.42
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. |
Liquor supplies, etc.
273,583.33
Chengdu Global Special Glass Manufacturing Co., Ltd. |
Raw materials
80,209.74
Sub-total of other fragmentary related procurement |
1,317,285.93
1,028,812.89
Total related procurement 1,163,649,269.28
985,430,778.90
Sichuan Anji Logistic Group Co., Ltd.
Freight and miscellaneous |
expenses, external labor
536,072,363.11
cost, etc. |
417,966,923.29
Sichuan Yibin Wuliangye Group AnjiLogistic Co., Ltd.
Freight and miscellaneous |
expenses, company bus
17,028,929.67
expenses, etc. |
31,027,950.97
Sichuan Yibin Push Intelligent Technology Co., Ltd. |
Maintenance cost, etc. 8,903,084.34
19,713,844.60
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. |
Publicity expense, etc. 5,406,017.06
Yibin Global Energy Conservation Service Co., Ltd. |
Wastewater treatment, etc. 2,973,218.40
Yibin Ansage Auto Service Co., Ltd.
expenses, maintenance,
vehicle cost, etc. |
3,438,785.56
1,732,210.00
Yibin Push Linko Technology Co., Ltd. Maintenance cost 1,607,648.75
1,455,359.22
Sichuan Ansage Supply Chain Management Co., Ltd. | Freight and miscellaneous expenses |
1,291,498.45
2,332,748.31
Sacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan |
Printing and production cost 1,180,111.07
Yibin Ansage International Logistic Co., Ltd. | Freight and miscellaneous expenses, etc. |
408,600.84
684,700.51
Sichuan Yibin Push Mold Co., Ltd. Maintenance cost, etc. 764,669.97
3,903,408.28
Sichuan Yibin Wuliangye Group Anji Logistic Shipping Co., Ltd. | Freight and miscellaneous expenses |
1,468,893.13
Chengdu Huayu Glass Manufacturing Co., Ltd. |
Labor cost
4,455,308.75
Yibin Ansage Auto Service Co., Ltd. Publicity expense
568,030.23
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
Maintenance cost 166,833.02
555,886.11
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Outsourced processing fee, etc. |
502,517.51
Sub-total of other fragmentary services received |
495,604.90
988,149.88
Total services received 579,737,365.14
487,355,930.79
Related transaction of purchases of goods and acceptance of servicesNote 1: On January 1, 2018, the Company and Yibin Shengdi Trade Co. Ltd. entered into the LaborProtection Appliances and Packing Bags Supply Agreement, according to which the latter shall supplyproducts to the Company based on its needs for production and operation. The Company conducts
acceptance for all agreement products which actually delivered according to the Agreement; the actualquantity received of the packing bags provided by Shengdi Company is the qualified quantity after theproduction and use by the Company, and the actual quantity received of the labor protection appliancesis the quantity accepted by the Company. The settlement shall be based on the actual quantity receivedas determined by the Company. Price of the products supplied under the Agreement strictly complieswith the market price and shall not be higher than the price charged by Shengdi Company for providingthe products to any third party. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 2: On January 1, 2018, the Company and Yibin Jinlong Trade Development Corporationentered into the Raw and Auxiliary Materials Supply Agreement, according to which the latter shallsupply raw and auxiliary materials to the Company at any time based on its needs for production andoperation. The Company warehouses and conducts acceptance for all agreement products whichactually delivered according to the Agreement; the actual quantity received is the qualified quantity afterthe production and use. The products are paid at the market price. The Agreement is valid from January1, 2018 to December 31, 2020.
Note 3: The Company and Sichuan Anji Logistic Group Co., Ltd. entered into the Logistics ServiceAgreement, according to which the Company outsources the logistics business during the productionand operation to Anji Logistic Group. The scope of logistics business includes (loading and unloading,handling, storage, and transportation of raw and auxiliary materials during the procurement logistics,production logistics and sales logistics). Anji Group shall provide professional logistics service to ensurethe safety and timeliness of the products. The Agreement is valid from January 1, 2018 to December 31,2020.Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Group 3D Co., Ltd. entered intothe Anti-counterfeit Labels Supply Agreement, according to which the latter shall supply anti-counterfeitlabels to the Company at any time based on its needs for production and operation. The Companywarehouses and conducts acceptance for all agreement products which actually delivered according tothe Agreement; the actual quantity received is the quantity that passes the acceptance inspection. Theagreement products are paid at market price based on the actual qualified quantity of the packingworkshop of the Company. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 5: On January 1, 2018, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into theMold Supply Agreement, according to which the latter shall supply molds to the Company at any timebased on its needs for production and operation. The Company warehouses and conducts acceptancefor all agreement products which actually delivered according to the Agreement; the actual quantityreceived is the qualified quantity after the production and use. The products are paid at the market price.The Agreement is valid from January 1, 2018 to December 31, 2020.Note 6: On January 1, 2018, the Company and Sichuan Yibin Push Drive Co., Ltd. entered into theInjection Products Supply Agreement, according to which the latter shall supply products to theCompany at any time based on its needs for production and operation. The Company warehouses andconducts acceptance for all agreement products which actually delivered according to the Agreement;the actual quantity received is the qualified quantity after the production and use. The products are paidat the market price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 7: On January 1, 2018, the Company and Sichuan Putian Times Technology Co., Ltd. enteredinto the Supply Agreement of Container Bags, Boxes, Accessories, Raw and Auxiliary Materials,according to which the latter shall supply container bags, boxes, accessories, raw and auxiliary materialsto the Company at any time based on its needs for production and operation. The Company warehousesand conducts acceptance for all agreement products which actually delivered according to theAgreement; the actual quantity received is the qualified quantity after the production and use by theCompany. The products are paid at the market price. The Agreement is valid from January 1, 2018 toDecember 31, 2020.
Note 8: The Company and Sichuan Yibin Global Group Tianwo Trade Co., Ltd. entered into theCooperation Agreement, according to which the latter shall supply base paper, raw materials for glass,labor protection appliances, auxiliary materials, and other materials to the Company based on its needsfor production and operation. Price of the products is determined by the market price through negotiationand confirmed by contract. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 9: On January 1, 2018, the Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd.entered into the Supply Agreement of Injection Products, Blister Products and Film Products, accordingto which the latter shall supply products to the Company at any time based on its needs for production
and operation. The Company warehouses and conducts acceptance for all agreement products whichactually delivered according to the Agreement; the actual quantity received is the qualified quantity afterthe production and use. The products are paid at the market price. The Agreement is valid from January1, 2018 to December 31, 2020.Note 10: On August 6, 2019, the Company and Sacred Mountain Molin Group Co., Ltd., Sichuanentered into the Procurement Contract of Salesman Uniform for Wuliangye Exclusive Shop, according towhich the latter shall supply a batch of salesman uniforms for Wuliangye exclusive shops to theCompany. Settlement shall be based on the quantity actually delivered. The product price consists ofexpenses (tax inclusive) of the goods related to materials, manufacturing, packing, transportation,inspection, and acceptance incurred before delivery, and those of the maintenance services and spareparts during the warranty period and other relevant items.Statement of sales of goods/provision of services
Unit: RMBRelated parties
Content of related transaction | Amount in current period | Amount in previous period |
Yibin Wuliangye Group I&E Co., Ltd. Liquor products 652,880,429.95
715,766,573.69
Sichuan Putian Times Technology Co., Ltd.
191,905,219.10
Bottle caps, slices, etc. |
252,780,516.68
Sichuan Yibin Push Auto Parts Co., Ltd. Raw materials, etc. 75,061,728.49
Chengdu PUTH Medical Plastics Packaging Co., Ltd. | Slices, coiled materials, etc. |
51,564,215.88
66,978,102.10
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Glass bottles, paper products, etc. |
57,930,524.81
3,624,383.37
Yibin Jinlong Trade Development Corporation Lactic acid 47,502,991.20
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Industrial sodium carbonate |
37,516,574.09
3,730,065.14
Sichuan Yibin Global Group Co., Ltd. Raw materials, etc. 28,853,048.01
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
Slices 28,286,548.75
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. Liquor products 27,523,335.87
89,429,112.08
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 22,399,640.97
24,701,982.94
Sichuan Sacred Mountain Hechang Clothing Co., Ltd. |
Plastic products 18,004,711.29
21,408,586.54
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. |
Liquor products 16,286,898.80
93,551,948.14
Sichuan Yibin Push Building Materials Co., Ltd.
Slices, etc. 15,991,958.85
33,859,217.64
Chengdu Huayu Glass Manufacturing Co., Ltd.
Cartons, glass bottles, etc. |
14,907,215.21
18,000,848.73
Sacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan |
Hang tags, labels, etc.
7,907,456.49
9,486,111.04
Yibin Jinlong Trade Development Corporation Liquor products 7,870,256.50
1,283,015.48
Yibin Huanyu Trade Co. Ltd. Liquor products 6,626,332.05
8,705,848.56
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
Coal 5,387,532.19
25,288,327.96
Yibin Jinlong Trade Development Corporation Mixed grains, DDGS 4,004,260.39
3,578,166.77
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Bottle caps, packing boxes, etc. |
3,713,386.76
5,585,316.28
Sichuan Linhu Tea Co., Ltd. Liquor products 1,811,362.84
Push Information & Automation (Chengdu) Co., Ltd. | Bottle caps, glass bottles, etc. |
1,073,093.87
2,865,375.88
Yibin Leitian Agricultural Development Co., Ltd.
Liquor products 1,015,752.21
Yibin Wuliangye Ecological Brewing Co., Ltd. Paper products 822,205.32
1,941,370.22
Sun Display Co., Ltd. Steam, etc. 806,692.32
777,618.96
Liquor products 565,230.53
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. |
97,688,287.32
Wuming Tea Industry Holding Co., Ltd. Liquor products 632,792.69
Sichuan Yibin Wuliangye Group Co., Ltd. Liquor products, etc. 542,768.10
465,934.01
Yibin Push Linko Technology Co., Ltd.
535,218.99
Wastewater treatment, etc. |
502,658.51
Sichuan Yibin Push Mold Co., Ltd. Plastic products 531,795.45
679,915.51
PUSH NINGJIANG MACHINE TOOL CO.,LTD.
Liquor products 530,973.45
517,241.38
Sichuan Yibin Push Auto Parts Co., Ltd.
461,382.07
Wastewater treatment, etc. |
427,386.04
Sinopharm Group Yibin Medicine Co., Ltd. Liquor products 526,341.62
Chengdu Push Automobile Mold Co., Ltd.
486,638.80
Wastewater treatment, etc. |
393,731.33
Sichuan Linhu Tea Co., Ltd. Packing materials 477,876.11
Yibin Wuliangye Group I&E Co., Ltd. Sheets, sundries, etc.
462,595.80
206,432.39
Sichuan Yibin Push Building Materials Co., Ltd.
Wastewater treatment, etc. |
425,882.28
427,194.42
Yibin Paper Industry Co., Ltd. Paper products 350,401.70
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. |
Sundries, etc. 314,273.67
467,332.45
Yibin Wuliangye Ecological Brewing Co., Ltd. Steam 275,691.26
440,017.00
Sichuan Yibin Push Group 3D Co., Ltd. Liquor products 155,778.51
574,465.81
Chengdu Puchuan Biomaterials Corporation Slices and bottle caps
133,791.16
558,222.83
Sichuan Push Acetati Company Limited Raw materials, etc. 125,985.74
1,724,236.91
Sichuan Yibin Push Group 3D Co., Ltd.
Sheets, rolled |
materials, laser film,
57,559.00
etc. |
2,039,166.27
Sichuan Yibin Global Group Co., Ltd. Liquor products 26,666.28
698,146.86
Sichuan Tyre Rubber (Group) Co., Ltd. Liquor products 7,964.60
1,344,827.58
Yibin Huanyu Trade Co. Ltd. Chuan-shaped tray
2,905,351.90
Yibin Wuliangye Ecological Brewing Co., Ltd. Liquor products
744,175.51
Chengdu Sacred Mountain Clothing Company Paper products
157,986.71
Other fragmentary sales 1,765,907.27
1,777,217.89
Total 1,337,046,887.29
1,498,082,416.83
Related transaction of sales of goods and provision of servicesNote 1: On January 1, 2018, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into theExport Commodities Purchase and Sales Agreement. The price of the agreement products supplied bythe Company to I&E Company is floating. The supply price (tax exclusive) is 70%-73% of the averageselling price per bottle of I&E Company in the previous month. According to the Agreement, I&ECompany shall give the Company prior written notice of specific requirements for specification, model,packaging, anti-counterfeit label, quantity, and delivery term of the Wuliangye series products accordingto the demands of the international market, and prepay 60% of the purchase price to the Company. TheCompany shall organize the production and supply Wuliangye series liquor products in a timely manneraccording to the export demands of I&E Company. The Agreement is valid from January 1, 2018 toDecember 31, 2020.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Ecological Breweryand Marketing Co., Ltd. entered into the Base Liquor Purchase and Sales Agreement, according towhich the latter shall give the Company prior written notice of the specific requirements for the quantityand date of delivery of the base liquor according to the market demands. The Company shall supply the
agreement products according to the needs for production and operation of the Ecological BreweryCompany. The price for supply of the agreement products shall strictly comply with the market price andpaid before delivery. The Agreement is valid from January 1, 2018 to December 31, 2020.Note 3: The Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd. entered into theFramework Contract, according to which the latter shall procure raw materials, packaging products,spare parts, and other production materials from the Company based on its needs for production andoperation. The product price consists of the factory price of materials, packing expenses, and varioustesting fees of the material, profits, taxes and other expenses. Refer to terms of payment as specified inspecific sales contract for settlement of the purchase price. The Agreement is valid from January 1, 2018to December 31, 2020.Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Building Materials Co., Ltd.entered into the Framework Contract, according to which the latter shall procure raw materials,packaging products, spare parts, and other production materials from the Company. The product priceconsists of the factory price of materials, packing expenses, and various testing fees of the material,profits, taxes and other expenses. Refer to terms of payment as specified in specific sales contract forsettlement of the purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 5: On January 1, 2018, the Company and Yibin Jinlong Trade Development Corporationentered into the Commodity Purchase and Sales Agreement, according to which the latter shallcommunicate with the Company about consumption of the agreement products in a timely manner, andthe Company shall ensure timely supply of the agreement products to satisfy the needs of Jinlong TradeCompany. Price for supply of the agreement products shall be based on the market price. The Companyshall give a one-week written notice of price adjustment in case of adjustment of the price of theagreement product; Payment for supply of the agreement product which is actually occurred shall besettled regularly. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 6: On January 1, 2018, the Company and Sichuan Yibin Push Drive Co., Ltd. entered into theFramework Contract, according to which the latter shall procure raw materials, packaging products,spare parts, and other production materials from the Company. The product price consists of the factoryprice of materials, packing expenses, and various testing fees of the material, profits, taxes and otherexpenses. Refer to terms of payment as specified in specific sales contract for settlement of thepurchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 7: On January 22, 2018, the Company and Yibin Huanyu Trade Co. Ltd. entered into theGeneral Distributor Contract of “Jinqiaoxi” Series Liquor, according to which Huanyu Trade Company isauthorized as the nationwide general distributor of “Jinqiaoxi” series liquors of the Company. Both partiesshall finalize the design according to the new product design scheme provided by Huanyu TradeCompany and seal the samples, and then the Company shall organize the production. Payment shall bemade before delivery. The Agreement is valid from January 22, 2018 to December 25, 2020.
Note 8: On January 23, 2018, the Company and Sichuan Sacred Mountain Hechang Clothing Co.,Ltd. entered into the Framework Contract, according to which the latter shall procure raw materials,packaging products, spare parts, and other production materials from the Company. The product priceconsists of the factory price of materials, packing expenses, and various testing fees of the material,profits, taxes and other expenses. Refer to terms of payment as specified in specific sales contract forsettlement of the purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 9: The Company and Chengdu Huayu Glass Manufacturing Co., Ltd. entered into theCooperation Agreement, according to which the latter shall procure cartons, paper products, and glassbottles from the Company and the Company shall make the procurement plan according to thespecification and quantity of the ordered products. The Company shall make calculation and quotation toHuayu Company based on the planned type and carry out production and supply according to the planafter the price is determined. The quantity shall be that of the products which are actually used andwarehoused after the arrival and acceptance. The Agreement is valid from January 1, 2018 to December31, 2020.
Note 10: On January 22, 2018, the Company and Sichuan Putian Times Technology Co., Ltd.entered into the Framework Contract, according to which the latter shall procure raw materials,packaging products and other materials from the Company. The product price consists of the factoryprice of materials, packing expenses, and various testing fees of the material, profits, taxes and otherexpenses. Refer to terms of payment as specified in specific sales contract for settlement of thepurchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
(2) Related-party lease
The Company as the lessor:
Unit: RMBName of lessee
Type of leasedassets
Lease revenue recognizedin current period
recognized in previous
period | ||
Chengdu PUTH Medical Plastics Packaging Co., Ltd. |
Equipment 814,150.22
Sichuan Yibin Push Building Materials Co., Ltd. |
Warehouse 663,267.96
663,267.96
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
Buildings 375,599.99
24,642.86
Sichuan Putian Times Technology Co., Ltd.
303,326.53
Houses and warehouses |
142,742.12
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
Buildings 226,285.72
142,993.25
Sichuan Anji Logistic Group Co., Ltd. Buildings 169,268.48
Sichuan Yibin Push Intelligent Technology Co., Ltd. |
Equipment 57,142.86
Sichuan Putian Times Technology Co., Ltd. Equipment 52,907.76
65,682.50
Sichuan Yibin Push Intelligent Technology Co., Ltd. |
Buildings 28,436.65
Chengdu Huayu Glass Manufacturing Co., Ltd. |
Buildings 5,528.57
27,171.43
The Company as the lessee:
Unit: RMBName of lessor Type of leased assets
Rents recognized in current period | Rents recognized in previous period |
Sichuan Yibin Wuliangye Group Co., Ltd. Land 296,558,180.00
296,558,180.00
Sichuan Anji Logistic Group Co., Ltd. Warehouse 39,453,231.04
47,369,747.05
Sichuan Yibin Wuliangye Group Co., Ltd.
29,822,513.62
Operation and management areas |
29,735,256.48
Sichuan Yibin Licai Group Co., Ltd. Buildings 15,512,748.60
15,512,748.60
Sichuan Yibin Push Group 3D Co., Ltd.
Operation and management areas |
6,715,238.10
6,715,238.10
Chengdu Huayu Glass Manufacturing Co., Ltd. |
Equipment 4,289,229.22
1,966,163.65
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
Warehouse 3,349,628.67
2,426,766.75
Sichuan Yibin Global Group Co., Ltd. Warehouse 2,989,811.34
2,690,830.18
Yibin Push Assets Management Co., Ltd. Warehouse 2,941,500.95
1,907,855.24
Sichuan Andaxin Logistic Co., Ltd. Warehouse 2,867,086.53
5,351,148.12
Yibin Push Linko Technology Co., Ltd.
2,345,358.51
Warehouses and houses |
1,933,924.54
Sichuan Yibin Push Group 3D Co., Ltd. Warehouse 1,865,139.63
3,108,566.05
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
Equipment 1,534,759.71
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
Warehouse 1,228,525.72
1,433,280.01
Yibin Push Linko Technology Co., Ltd. Equipment 768,000.00
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. |
Warehouse 111,566.01
Sichuan Ansage Supply Chain Management Co., Ltd. |
Warehouse 44,719.64
664,717.82
Sichuan Yibin Weilisi Float Glass Manufacturing Co., Ltd. |
Equipment 14,455.75
67,015.69
Buildings
Chengdu Huayu Glass Manufacturing Co., Ltd. |
195,816.96
Sichuan Anji Logistic Group Co., Ltd. Vehicles
151,834.95
Note on related-party leaseNote 1: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto three Land Lease Agreements, according to which Wuliangye Group leases three plots of landowned by it to the Company. The leased areas are 2,315,349.08, 724,958.17 and 666,670.00 squaremeters, with the annual rents of RMB 185.2279 million, RMB 57.9967 million and RMB 53.3336 million,respectively, totaling RMB 296.5582 million. The lease term is from January 1, 2018 to December 31,2020.Land price criterion:
The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. isformulated with reference to the land lease criterion of previous years and in accordance with the Replyof Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of theLand Lease Criterion (YGTH (2010) No. 53, March 12, 2010), which stating that “the rent of RMB 50-110per square meter per year for the industrial land in this area is consistent with prevailing land price ofYibin”. The Company and Wuliangye Group determine the rent of leased land as RMB 80 per squaremeter per year through mutual agreement.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto the Operation and Management Areas Lease Agreement, according to which Wuliangye Groupleases part of the operation and management areas (including the office building, multi-function pavilion,etc.) owned by it to the Company. The leased area is 27,121.32 square meters, with the annual rent ofRMB 29.256 million. The lease term is from January 1, 2018 to December 31, 2020.
Note 3: On December 29, 2017, the Company and Sichuan Yibin Licai Group Co., Ltd. entered intothe Factory Building Lease Contract, according to which Licai Group leases the high-end productworkshop building (1F-5F) at its headquarter to the Company. The leased area is 20,557.30 squaremeters, with the annual rent (tax inclusive) of RMB 16,288,386.00. The Agreement is valid from January1, 2018 to December 31, 2020.
Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Group 3D Co., Ltd. entered intothe Operation and Management Areas Lease Agreement, according to which Push Group leases itsoffice building located at No. 150, West Minjiang Road, Yibin and all office equipment in the officebuilding to the Company. The leased area is 6,536.70 square meters, with the annual rent of RMB 7.051million. The lease term is from January 1, 2018 to December 31, 2020.
(3) Guarantee with related parties
The Company had no guarantee with related parties during the reporting period.
(4) Loans and borrowings with related parties
The Company had no loans and borrowings with related parties during the reporting period.
(5) Assets transfer and debt restructuring with related parties
There is no assets transfer and debt restructuring with related parties during the reporting period.
(6) Key management personnel remuneration
Unit: RMB ’0,000Item Amount in current period Amount in previous period
Key management personnel
remuneration
744.12
1,247.09
(7) Other related transactions
① Procurement of equipment, etc.
Unit: RMB Yuan
Related parties | Content of related transaction | Amount in current period | Amount in previous period |
Sichuan Yibin Wuliangye Group Co., Ltd. | Trademark and logo royalties (Note 1) |
577,396,281.55
480,734,618.78 | |||
Sichuan Yibin Wuliangye Group Co., Ltd. | Comprehensive service fee (Note 2) |
67,434,207.22
85,711,430.00 |
Sichuan Yibin Push Group 3D Co., Ltd. | Trademark maintenance and patent fee | 9,433.96 |
Procurement of equipment 15,872,532.05
Sichuan Yibin Push Intelligent Technology Co., Ltd. | 14,906,871.31 | ||
Yibin Global Energy Conservation Service Co., Ltd. | No.4 Glass Kiln Gas Treatment Project |
3,873,909.03
Purchase of equipment 764,000.00
Yibin Push Linko Technology Co., Ltd. | 1,729,342.74 | ||
Chengdu PUTH Medical Plastics Packaging Co., Ltd. |
Procurement of equipment 599,660.55
4,578,287.87 |
Procurement of equipment 474,641.40
Push Information & Automation (Chengdu) Co., Ltd. | |||
Yibin Ansage Auto Service Co., Ltd. |
154,708.16
Purchase of transportation equipment | 1,123,325.36 |
Procurement of equipment 70,580.50
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | |||
Yibin Wuliangye Group I&E Co., Ltd. |
Procurement of equipment
4,150,086.00 | |||
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Purchase of transportation equipment | 1,636,767.74 |
Yibin Jitai Automobile Sales & Service Co., Ltd. | Purchase of transportation equipment | 1,604,260.35 | |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Pipeline rectification project of the rain and sewage diversion project | 1,435,725.54 |
Purchase of equipment
Sichuan Zhongke Better Technology Co., Ltd. | 599,300.00 | ||
Sichuan Putian Times Technology Co., Ltd. |
Purchase of equipment
45,791.46 |
Procurement of equipment 255,770.63
Yibin Push Assets Management Co., Ltd. | |||
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
Selling of equipment 2,767.20
Note 1: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto the Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses tothe Company the nonexclusive right of use of 1 factory emblem, the nonexclusive right of use of 8trademarks, exclusive right of use of 130 trademarks, and unpaid exclusive right of use of 4 trademarks.The royalty shall be paid by the following means: ① The royalty of “factory emblem” shall be paid at
1.27% of the annual sales revenue from all liquor products using the “factory emblem”; ② No royalty
shall be paid for trademark of liquor products of which the annual sales revenue is less than 50 tons, androyalty of trademark of liquor products sold by 50 tons (inclusive) or more shall be calculated by the totalsales volume. Royalties of trademark shall be paid by the following means: Trademark royalty ofproducts with selling price at RMB 30,000 per ton and above shall be RMB 1,500 per ton; and that ofproducts with selling price at RMB 12,000 per ton and above but below RMB 30,000 per ton shall beRMB 1,400 per ton; that of products with selling price below RMB 12,000 shall be RMB 1,300 per ton.The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredinto the Comprehensive Service Agreement, according to which the latter shall provide the agreedservice to the Company by the quantity agreed by both parties from time to time. Both parties measurethe services at the actual cost, and the rate of increase of the unit cost price compared with the previousyear shall be no more than the inflation index of previous year plus 5% or the growth factor of consumerprice index of Sichuan Province, whichever is lower. The increase shall not be subject to the above limitwhen the service scope is expanded, and the service shall still be measured at the actual cost ofprovision of the service. The Agreement is valid from January 1, 2018 to December 31, 2020.
② Association relationship with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
The Company signed the Financial Service Agreement and the Supplemental Agreement to theFinancial Service Agreement with the Finance Company on April 12, 2018 and March 20, 2019,respectively. The main contents are loan and deposit services. Daily balance of deposits of the Companywith the Finance Company in 2019 was no more than RMB 32.9 billion, and the daily balance of loan in2019 was no more than RMB 2.5 billion.
The total deposits of the Company with the Finance Company was RMB 32,405,107,434.58 at theend of the period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to theCompany, assuring that relevant deposits and loans of the Company with the Finance Company are safe;the current interest revenue is RMB 568,837,207.18 in total.
6. Receivables from and payables to related parties
(1) Receivables
Unit: RMB
Project name Related parties
Ending balance Beginning balanceBook balance
Book balance
Bad debt provision | Bad debt provision | |||
Accounts receivable |
Sichuan Putian Times Technology Co., Ltd. 31,324,539.34
46,140,333.20
Accounts receivable | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. |
9,512,479.81
Accounts receivable | Chengdu PUTH Medical Plastics Packaging Co., Ltd. |
8,420,650.88
Accounts receivable |
Chengdu Huayu Glass Manufacturing Co., Ltd. 3,779,810.70
4,479,320.27
Accounts receivable | Push Information & Automation (Chengdu) Co., Ltd. |
709,868.22
Accounts receivable |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd.
507,527.52
Accounts receivable | Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. |
319,302.00
301,709.76
Accounts receivable |
Sichuan Yibin Push Group 3D Co., Ltd.
430,645.02
Accounts receivable |
Chengdu Puchuan Biomaterials Corporation
304,200.00
Prepayment Sacred Mountain Molin Group Co., Ltd., Sichuan 8,283,185.84
Prepayment Sichuan Anji Logistic Group Co., Ltd. 997,853.00
827,429.00
Prepayment Sichuan Yibin Push Drive Co., Ltd. 1,884,151.79
Prepayment Sichuan Yibin Push Intelligent Technology Co., Ltd.
314,700.00
923,000.00
Prepayment Yibin Ansage Auto Service Co., Ltd. 9,300.18
41,124.46
Prepayment Yibin Wuliangye Group I&E Co., Ltd.
1,228,373.04
Prepayment Chengdu Ningjiang Machine Tool Sales Co., Ltd.
405,000.00
Prepayment
Push Information & Automation (Chengdu) Co., Ltd. |
275,292.00
Prepayment
Sichuan Ansage Supply Chain Management Co., Ltd. |
16,597.48
Interest receivable |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. 531,981,058.33
236,778,826.86
Other receivables | Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. |
480,000.00
100,000.00
Other receivables |
Sichuan Anji Logistic Group Co., Ltd. 450,000.00
450,000.00
Other receivables |
Sichuan Putian Times Technology Co., Ltd. 250,000.00
250,000.00
Other receivables |
Chengdu Huayu Glass Manufacturing Co., Ltd. 200,000.00
Other receivables |
Yibin Wuliangye Ecological Brewing Co., Ltd. 122,727.27
122,727.27
Other receivables | Sacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan |
70,000.00
20,000.00
Other receivables |
Sichuan Linhu Tea Co., Ltd. 50,000.00
Other receivables |
Sichuan Yibin Push Drive Co., Ltd. 7,016.11
Other receivables |
Oriental Outlook Media Co., Ltd.
1,000,000.00
Other receivables |
Sichuan Push Acetati Company Limited
141,169.23
(2) Payables
Unit: RMB
Project name Related parties Ending book balance Beginning book balance
Sichuan Yibin Push Group 3D Co., Ltd. 14,475,469.14
Accounts payable |
9,317,707.27
Accounts payable |
Sichuan Yibin Wuliangye Group Co., Ltd. 7,634,607.30
Accounts payable | Chengdu PUTH Medical Plastics Packaging Co., Ltd. |
1,170,859.61
310,243.95
Accounts payable | Sichuan Ansage Supply Chain Management Co., Ltd. |
334,704.03
Accounts payable |
Sichuan Anji Logistic Group Co., Ltd. 292,692.00
995,909.05
Accounts payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. |
235,712.98
1,048,057.39
Accounts payable |
Sichuan Andaxin Logistic Co., Ltd. 182,250.00
182,250.00
Accounts payable | Chengdu Ningjiang Machine Tool Sales Co., Ltd. |
180,000.00
Accounts payable | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. |
414,303.16
772,781.44
Accounts payable |
Sichuan Putian Times Technology Co., Ltd. 111,293.30
288,124.24
Accounts payable | Push Information & Automation (Chengdu) Co., Ltd. |
55,058.40
Accounts payable | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
30,066.98
9,620,450.94
Accounts payable |
Sichuan Yibin Push Mold Co., Ltd.
2,023,240.73
Accounts payable | Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
1,003,423.68
Accounts payable |
Sichuan Yibin Push Drive Co., Ltd.
914,307.08
Accounts payable |
Yibin Ansage International Logistic Co., Ltd.
708,082.72
Accounts payable | Yibin Global Energy Conservation Service Co., Ltd. |
440,382.34
Accounts |
received in
Sichuan Yibin Push Building Materials Co., Ltd.
advance |
4,942,728.12
768,890.93
Accounts |
received in
Yibin Wuliangye Ecological Brewing Co., Ltd. 736,363.64
advance | |||
Accounts |
received in
Yibin State-Owned Assets Operation Co., Ltd. 439,000.00
advance |
439,000.00
Accounts |
received in
Sichuan Linhu Tea Co., Ltd. 375,600.00
advance | |||
Accounts |
received in
Wuming Tea Industry Holding Co., Ltd. 267,600.00
advance | |||
Accounts |
received in
Yibin Anji Logistic Group ShenzhouTransportation Co., Ltd.
208,248.14
advance |
208,248.14
Accounts |
received in
Sichuan Yibin Push Group 3D Co., Ltd. 96,012.00
advance |
91,245.60
Accounts |
received in
Yibin Wuliangye Group I&E Co., Ltd. 83,711.24
advance |
39,723.28
Accounts |
received in
Sichuan Putian Times Technology Co., Ltd. 82,640.00
advance |
63,000.00
Accounts |
received in
Sichuan Yibin Wuliangye Group EcologicalBrewery and Marketing Co., Ltd.
66,440.00
advance |
received in
advance |
Sichuan Yibin Global Group Tianwo Trade Co.,Ltd.
6,000.00
Accounts |
received in
Chengdu Wu Liang Ye Grand Hotel Co., Ltd.
advance |
2,773,800.00
Accounts |
received in
Chengdu PUTH Medical Plastics PackagingCo., Ltd.
advance |
1,423,092.79
Accounts |
received in
Sacred Garments & Home-Tex Co.,Ltd. Yibin,Sichuan
advance |
1,286,036.78
Accounts |
received in
Sichuan Yibin Wuliangye Group Health WineCo., Ltd.
advance |
111,930.00
Notes payable Wuming Tea Industry Holding Co., Ltd. 320,000.00
Notes payable
280,000.00
Sichuan Ansage Supply Chain Management Co., Ltd. |
3,000,000.00
Notes payable
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
7,602,788.13
Notes payable Sichuan Yibin Licai Group Co., Ltd.
4,639,778.95
Notes payable Sichuan Putian Times Technology Co., Ltd.
273,907.12
Other payables
Sichuan Yibin Wuliangye Group Co., Ltd. 136,248,128.58
13,348,251.69
Other payables
Sichuan Yibin Push Intelligent Technology Co., Ltd. |
2,920,492.15
2,147,079.35
Other payables
Sichuan Putian Times Technology Co., Ltd. 1,976,478.00
477,063.00
Other payables
Sichuan Anji Logistic Group Co., Ltd. 673,087.45
644,597.45
Other payables
Yibin Push Linko Technology Co., Ltd. 528,426.44
301,348.00
Other payables
Chengdu PUTH Medical Plastics Packaging Co., Ltd. |
357,761.64
290,000.00
Other payables
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. |
137,790.43
Other payables
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. |
110,569.94
223,885.30
Other payables
Sichuan Chengdu Push Electromechanical Technology Research Co., Ltd. |
70,000.00
Other payables
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. |
70,000.00
Other payables
Sichuan Yibin Push Building Materials Co., Ltd.
55,000.00
55,000.00
Other payables
Yibin State-Owned Assets Operation Co., Ltd. 50,000.00
50,000.00
Other payables
Sichuan Linhu Tea Co., Ltd. 50,000.00
Other payables
Yibin Ansage International Logistic Co., Ltd. 36,586.85
36,586.85
Other payables
Yibin Ansage Auto Service Co., Ltd. 25,000.00
5,000.00
Other payables
Sacred Mountain Molin Group Co., Ltd., Sichuan |
16,610.00
Other payables
Chengdu Sacred Mountain Clothing Company 13,421.80
Other payables
Chengdu Ningjiang Machine Tool Sales Co., Ltd. |
10,000.00
80,000.00
Other payables
Yibin Shengdi Trade Co. Ltd. 5,000.00
5,000.00
Other payables
Sacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan |
3,000.00
3,000.00
Other payables
Sichuan Ansage Supply Chain Management Co., Ltd. |
2,036.28
50,000.00
Other payables
Yibin Global Energy Conservation Service Co., Ltd. |
740,000.00
Other payables
Chengdu Wu Liang Ye Grand Hotel Co., Ltd.
10,000.00
XI. Commitments and contingencies
1. Significant commitments
The Company had no significant commitments which need to be disclosed during the reportingperiod.
2. Contingencies
The Company had no significant contingencies which need to be disclosed during the reportingperiod.
XII. Post-balance sheet events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
2. Profit distribution
As resolved by the 73rd meeting of the 5th board of directors of the Company held on April 24, 2020,the profit distribution plan of 2019 is: RMB 22 (tax inclusive) in cash will be distributed for every 10shares, and no capital reserve will be transferred to capital stock. This plan shall be subject to theapproval of the general meeting.
3. Note on other post-balance sheet events
The Company has no other post-balance sheet events which need to be disclosed.XIII. Other significant matters
1. Pension plan
The Company obtained the reply of the State-owned Assets Supervision and AdministrationCommission of Yibin Municipal Government on the Plan of Establishing the Corporate Pension Plan ofthe Company (YGZW [2018] No.221) on September 14, 2018, and had filed with the Department ofHuman Resources and Social Security of Sichuan Province on October 30, 2018.
Participants of the corporate pension plan of the Company include: (1) Employees who haveentered into labor contracts with the Company; (2) Employees who participate in the basic old-ageinsurance system for enterprise employees according to the law and perform the obligation of payment;and (3) Employees who are on duty and registered (excluding the probation period) will participate thecorporate pension plan on a voluntary basis.
Expenses for the corporate pension shall be shared by the Company and the employees.Contribution by an employee shall be 3% of the contribution base of such employee, and the monthlycontribution base of the employee shall be the average wage in the previous year. Total amount ofcontribution by the Company shall be 5% of the total annual wage paid by the Company, which shall bedistributed to individual accounts of the employees at 3% of the contribution base of the employees,while the remaining 2% shall be distributed to the corporate account as incentives for rewardingpersonnel who make significant contributions to the Company and for redistribution to employees of theCompany.
2. Segment information
The Company has no other businesses than liquor products which have significant impact on thebusiness performance. The Company has no segment information that needs to be disclosed sincerevenue of the Company is mainly generated within China and the assets are also located within China.
XIV. Notes to important items of parent company's financial statements
1. Other receivables
Unit: RMBItem Ending balance Beginning balanceInterest receivable 570,078,014.35
383,190,672.91
Dividends receivable 654,791,389.27
342,607,430.63
Other receivables 8,901,837,449.41
11,409,337,577.74
Total 10,126,706,853.03
12,135,135,681.28
(1) Interest receivable
1) Classification of interest receivable
Unit: RMBItem Ending balance Beginning balanceInterest of fixed term deposit 570,078,014.35
383,190,672.91
Total 570,078,014.35
383,190,672.91
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMBItem (or invested company) Ending balance Beginning balanceDividends receivable from subsidiaries
654,791,389.27
342,607,430.63
Total 654,791,389.27
342,607,430.63
2) Provision for bad debt
□ Applicable √ Not applicable
(3) Other receivables
1) Other receivables classified by nature
Unit: RMBNature of receivable Ending book balance Beginning book balance
Current account 8,892,421,547.89
11,403,421,695.31
Deposit 10,000,000.00
5,000,000.00
Reserve fund 76,201.29
70,009.94
Loans to Oriental Outlook Media Co., Ltd. |
1,000,000.00
Total 8,902,497,749.18
11,409,491,705.25
2) Provision for bad debt
Unit: RMBBad debt provision
Stage 1 Stage 2 Stage 3
TotalExpected credit losses over
the coming 12 months
Expected credit loss for the
entire duration (no credit
impairment) | Expected credit loss for the |
entire duration (credit
Balance on January 1, 2019 154,127.51
impairment has occurred) | ||
154,127.51
Balance on January 1, 2019 in current period |
-- -- -- --Provisions in current period 506,172.26
506,172.26
Balance on December 31, 2019 |
660,299.77
660,299.77
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMBAging Book balanceWithin 1 year (inclusive) 7,079,954,765.07
1 to 2 years 126,607,645.67
2 to 3 years 104,064,080.50
More than 3 years 1,591,871,257.94
3 to 4 years 97,947,190.67
4 to 5 years 101,990,963.67
More than 5 years 1,391,933,103.60
Total 8,902,497,749.18
3) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Category
Beginningbalance
Amount of change in current year
Ending balance
Provisions
Recovery orreversal
Write-off OthersOther receivables with bad debt provision bysingle item
Other receivables with bad debt provision bycredit risk combination
154,127.51
506,172.26
660,299.77
Total 154,127.51
506,172.26
660,299.77
4) Other receivables actually written off in current period
The parent company had no other receivables actually written off in current period.
5) Other receivables with top 5 ending balances by debtor
Unit: RMB
Unit name
Natureofreceivables
Ending balance Aging
Proportion in totalending balance ofother receivables
Bad debtprovision
EndingbalanceSichuan Yibin Wuliangye Winery Co., Ltd.
Currentaccount
6,954,534,667.27
Within 1 year
78.12%
Yibin Jiangjiu Liquor Co., Ltd.
Currentaccount
1,540,284,708.85
1-
5 years; More |
than 5 years
17.30%
Sichuan Yibin Wuliangye Environmental |
Protection Co., Ltd.
Currentaccount
212,489,316.81
2-
3 years; More |
than 5 years
2.39%
Yibin Wuliangye Xianlin Ecological Liquor Co., |
Ltd.
Currentaccount
129,206,278.05
4-
5 years; More |
than 5 years
1.45%
Sichuan Yibin Global Gelasi GlassManufacturing Co., Ltd.
Currentaccount
25,320,627.98
More than 5 years
0.28%
Total -- 8,861,835,598.96
-- 99.54%
2. Long-term equity investment
Unit: RMBItem
Ending balance Beginning balanceBook balance
Provision
forimpairment
Book value Book balance
Provision
forimpairment
Book valueInvestment insubsidiaries
9,597,846,998.20
9,597,846,998.20
9,597,846,998.20
9,597,846,998.20
Investment in associatesand joint-ventures
1,011,936,626.41
1,011,936,626.41
919,477,978.54
919,477,978.54
Total 10,609,783,624.61
10,609,783,624.61
10,517,324,976.74
10,517,324,976.74
(1) Investment in subsidiaries
Unit: RMBInvested company
Beginning balance(book value)
Increase/decrease in the current period
Ending balance(book value)
Endingbalance of
IncreaseInvestment
DecreaseInvestment
Accrual of |
impairment
Others
provision | provision for |
impairmentSichuan Yibin Wuliangye Winery Co., Ltd. 3,375,729,567.45
3,375,729,567.45
Yibin Wuliangye Liquor Sales Co., Ltd. 190,000,000.00
190,000,000.00
Sichuan Yibin Wuliangye Supply and Marketing Co.,Ltd.
765,756,006.41
765,756,006.41
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00
50,000,000.00
Sichuan Yibin Wuliangye Environmental ProtectionCo., Ltd.
18,870,000.00
18,870,000.00
Yibin Changjiangyuan Liquor Co., Ltd. 20,000,000.00
20,000,000.00
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. 2,700,000.00
2,700,000.00
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 49,374,409.93
49,374,409.93
Sichuan Yibin Plastic Packaging Materials CompanyLimited
3,443,149,609.25
3,443,149,609.25
Sichuan Yibin Global Group Shenzhou Glass Co.,Ltd.
108,922,175.18
108,922,175.18
Sichuan Yibin Global Gelasi Glass ManufacturingCo., Ltd.
307,282,551.14
307,282,551.14
Sichuan Yibin Push Group 3D Co., Ltd. 240,419,229.32
240,419,229.32
Sichuan Yibin Wuliangye Investment (Consulting)Co.,Ltd.
47,500,000.00
47,500,000.00
Yibin Zhenwushan Liquor Co., Ltd. 20,000,000.00
20,000,000.00
Yibin Shiji Liquor Co., Ltd. 20,000,000.00
20,000,000.00
Yibin Cuipingshan Liquor Co., Ltd. 20,000,000.00
20,000,000.00
Wuliangye Dashijie (Beijing) Trade Co., Ltd. 323,000,000.00
323,000,000.00
Handan Yongbufenli Liquor Co., Ltd. 255,000,000.00
255,000,000.00
Huaibin Wubin Consultation Service Co., Ltd. 199,675,708.13
199,675,708.13
Wuguchun Jiu Ye Co., Henan. China 55,467,741.39
55,467,741.39
Sichuan Wuliangye Culture Tourism DevelopmentCo., LTD
40,000,000.00
40,000,000.00
Yibin Wuliangye Creart Co., Ltd. 45,000,000.00
45,000,000.00
Total 9,597,846,998.20
9,597,846,998.20
(2) Investment in associates and joint-ventures
Unit: RMBInvestor
Beginning balance
(Book value)
Increase/decrease in the current period
Ending balance(Book value)
Endingbalance ofprovision forimpairmentAdditionalinvestment
Reducedinvestment
investmentsrecognized withequity method
Profit and loss on | Adjustment |
of othercomprehensive income
Changes |
in otherequities
of cashdividendsor profits
Accrual ofimpairmentprovision
OthersI. Joint venturesII. AssociatesOriental Outlook Media Co.,Ltd.
13,742,029.36
Declaration
3,336,110.30
17,078,139.66
Sichuan Yibin WuliangyeGroup Finance Co., Ltd.
905,735,949.18
89,122,537.57
994,858,486.75
Sub-total 919,477,978.54
92,458,647.87
1,011,936,626.41
Total 919,477,978.54
92,458,647.87
1,011,936,626.41
3. Operating revenue and operating cost
Unit: RMBItem
Amount in current period Amount in previous periodRevenue Cost Revenue CostOther businesses 557,807.81
1,197,774.65
Total 557,807.81
1,197,774.65
Whether new revenue standards have been implemented
□ Yes √ No
4. Investment income
Unit: RMBItem Amount in current period Amount in previous periodLong-term equity investment incomeaccounted by cost method
11,886,940,965.04
8,495,720,769.88
Long-term equity investment incomeaccounted by equity method
92,458,647.87
100,740,183.08
Total 11,979,399,612.91
8,596,460,952.96
XV. Supplementary information
1. Statement of current non-recurring profit and loss
√ Applicable □ Not applicable
Unit: RMBItem Amount NoteGain or loss on disposal of non-current assets -1,571,612.06
Governmental subsidy recorded in current profit/loss (exceptthose government subsidies, which are closely related to thebusiness of a company and enjoyed in accordance with acertain standard quota or quantity of the state)
129,760,347.41
Fund occupation fee collected from non-financial enterprisesand recorded in current profit/loss
15,503,633.45
Other non-operating revenue and expenditure except for theaforementioned items
-135,436,782.11
Less: Impact on income tax -4,831,273.10
Impact on minority equity 16,853,457.08
Total -3,766,597.29
--
Concerning the non-recurring profit/loss defined by Q&A Announcement No. 1 on InformationDisclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and theitems defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&AAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public -Non-recurring Profit/Loss, explain reasons.
□ Applicable √ Not applicable
2. Net return on equity and earnings per share
Profit of the reporting period Weighted average return on equity
Earnings per shareBasic earnings pershare (RMB/share)
Diluted earnings pershare (RMB/share)Net profit
shareholders of the Company
25.26%
attributable to ordinary |
4.483
4.483
Net profit attributable to ordinary |
shareholders of the Companyafter deducting non-recurringprofit and loss
25.27%
4.484
4.484
3. Differences in accounting data under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in the financial report, under both
International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting standards and Chinese Accounting Standards
□ Applicable √ Not applicable
Section XIII Reference File Directory
Relevant departments of the Company have prepared the following documents forshareholders’ reference:
I. Financial Statements containing signatures of the legal representative, the person in charge ofthe accounting work, and the person in charge of the accounting institution with seals.
II. Original Audit Report stamped by the accounting firm and signed and stamped by the CPAs.
III. Original copies of the documents and announcement of the Company published on ChinaSecurities Journal, Shanghai Securities News, and Securities Times during the reporting period.
IV. Annual Report of the Company.
Wuliangye Yibin Co., Ltd.
April 28, 2020