五粮液(000858)_公司公告_五粮液：2019年社会责任报告（英文版)新浪财经

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五粮液：2019年社会责任报告（英文版) （下载公告）

公告日期:2020-07-23

Legendary Wuliangye, Classic SpiritCorporate Social Responsibility Report 2019

Wuliangye Yibin Co., Ltd.

IntegrityExcellenceCreate everlasting achievementAdvocate universal love.

Report PeriodFrom January 1, 2019 to December 31, 2019. To make the report more comparable and com-plete, this report contains data of previous years and information collected during the ghtagainst the COVID-19 pandemic.

Release PeriodThis report is released annually. The 2018 report was released in March, 2019.Data Resource and CredibilityData contained in this report is collected from the government’s public data, Wuliangye’s internalstatistical statements, third-party surveys, administrative documents and reports, and third-partyevaluations and interviews. This report has been reviewed and approved by the Board of Direc-tors of Wuliangye Yibin Co., Ltd.Normative ReferencesGRI Sustainability Reporting Standards (GRI Standards)Chinese Academy of Social Sciences - Corporate Social Responsibility 4.0 (CASS-CSR4.0)The Ten Principles of the UN Global CompactISO26000: Guidance on Social Responsibility (2010)GB/T36001-2015 Guidance on Social Responsibility ReportingShenzhen Stock Exchange (SZSE) - Guidelines for the Standard Operation of Listed CompaniesShenzhen Stock Exchange (SZSE) - Guidelines for the ESG Information Disclosure of ListedCompanies (Exposure Draft)

Designation"Wuliangye", "The Company", "Company", or "We" are used in this report to refer to "WuliangyeYibin Co., Ltd."Report ScopeThis report covers Wuliangye (SZSE: 000858) and its subsidiaries.AvailabilityThis report is available online. The online report can be viewed and downloaded at http://www.cninfo.com.cn. For more information about the Company, please refer to 2019 Annual Report ofWuliangye.

Comments and FeedbackPlease feedback by phone call, email, or post at:

Address: No. 150, Minjiang West Road, Cuiping District, Yibin, SichuanPostal code: 644007Telephone: (0831) 3567000, 3566937, 3566858Fax: (0831) 3555958E-mail: 000858-wly@sohu.comWebsite: https://www.wuliangye.com.cn

This report is the 12th annual corporate social responsibility (CSR) report released by Wuliangye Yibin Co.,Ltd. since 2008. Based on the principles of being objective, standard, transparent, and comprehensive, thisreport discloses Wuliangye’s practices and performances in responsible areas of environmental, social, andgovernance (ESG) in 2019 in detail.

About this Report

Contents

01 Message from Senior Management

03 CSR Data in 2019

05 Victory over COVID-19 Pandemic

07 Chapter One Evolution of Wuliangye09 Company Profile11 Development History14 Review of 201916 Responsibility System

19 Chapter Two Source of Imagination and Innovation

21 Scientific and technological R&D26 Innovative product29 Quality management33 Work safety39 Chapter Three Leadership and Governance

41 Party’s leadership45 Corporate governance51 Internal control52 Integrity construction

Chapter Four Staff Support and Customer Satisfaction 53

Caring for employees 55Service for customers 62Support for dealers 67Cooperation with suppliers 69

Chapter Five Sustainability and Environment-friendliness 71

Energy conservation and environmental protection 73Compliant emission 77Eco industrial park 79Green base 82Chapter Six Cultural Inheritance and Promotion 85

Protection of liquor legacy 87Advocacy of Wuliangye Culture 89Chapter Seven Exchange and Collaboration 91

Industrial exchange 93Sharing with governments 96International cooperation 98Chapter Eight Commitment to Corporate Philanthropy 103

Targeted poverty alleviation 105Charity activities 111Support for the People’s Liberation Army 113Responsible drinking 114

Vision: Creating a classic combination of ancient cellar preserva-tion with modern aromatic flavor 115

2019 Social Responsibility Report

Message from Senior Management

The return of spring brings life and vitality on earth. In 2019, we made achievements with all-out e?orts, and progressedwith down-to-earth actions. Based on the core values of “creating outstanding experiences for customers, happinessfor employees, and returns for investors”, the Company carried out various reform measures to eliminate weakness,enhance advantages, and upgrade new business drivers, delivering a record-high performance. The total annual salesstood at RMB 50.118 billion (unless otherwise stated, nancial data in this report is in RMB), and the total prot reachedRMB 24.106 billion. With a net prot of RMB 17.402 billion attributed to shareholders of the listed company, the Companyhas increased its annual sales by RMB 10 billion for three consecutive years and continued to develop in a robust way.In 2019, the Company closely followed new market trends and captured emerging opportunities. The Company madeprogresses in brand building, marketing, and quality, and signicantly enhanced core competitiveness by adjusting theroadmap for deepening supply-side structural reform. Brand value and influence have been further strengthened byspeeding up the implementation of requirements of “ensuring Wuliangye’s genuineness, integrity, and grade and reinforc-ing brand identity”. The 8th-generation classic Wuliangye baijiu was launched successfully. The “1+3” product system ofWuliangye’s main brands, and the four national strategic product structures for the wine series have been realized, whichhas enriched the product portfolio and optimized the brand system. Wuliangye was recognized as a China-EU geograph-ical indication brand, cementing and amplifying our voice in the EU and global markets. E?orts were made in marketingtransformation and digitalization, enhancing market services and control capacity. The Company set up Wuliangye BrandProject Business Unit, Wuliang NongXiang Series Baijiu Yibin Co.,Ltd. and Yibin Wuliangye Xianlin Ecological Liquor Co.,Ltd., which has integrated marketing resources, advanced management level, and realized horizontal professionalization

in the headquarters and vertical delayering in regional organizations. By introducing the ERP project and clarifying re-sponsibilities of marketing foreground, middle ground, and background, digitalization was fully implemented in marketing,production, and management systems, which has synchronized production, supply, and sales processes and increasedoperation e?ciency and respond speed. We underscored technology innovation and traceability management to reinforcequality guarantee and supply capacity. In 2019, we set up a number of high-level research platforms, including SichuanProvincial Engineering Technology Research Center on Liquor Grains, Sichuan Provincial Engineering Research Centeron Solid-state Fermented Baijiu Production, and Wuliangye academician workstation, to continue to boost technologyinnovation throughout the whole product chain from grain breeding, production, and development to quality control. Withenhanced baijiu quality, the Company was awarded the National Outstanding Product Quality Award. The Company setup a site dedicated for liquor grains, covering roughly 66,667 hectares, and enabled 100% pre-inspection, traceability,and management for liquor grains.While striving to promote production and operation, the Company played an active role in building corporate culture andfacilitating opening-up and cooperation, environmental protection, and social responsibilities to strengthen our soft powerthroughout 2019. Sticking to the principle of people-orientation, we endeavored to build a harmonious and enterprisingculture of cooperation. The Company consistently acted in line with the core principle of “creating happiness for employ-ees” by providing them with a good working environment and diversied development opportunities while safeguardingtheir legitimate interests. We consistently used corporate culture construction as a driver to promote reform, innovation,and high-quality development across the group. For instance, Wuliangye Culture Research Institute was established toexplore insights of the culture. The Company consolidated opening-up and exchanges to establish a new developmentsystem based on extensive consultation, joint contribution, and shared benets. The Company was elected a member ofAPEC China Business Council, co-sponsored the Yibin Summit of the Sixth National Governance Forum, and organizedthe 2019 Belt and Road Forum for Cooperation and Development of Sichuan International Friendship Cities. We en-hanced strategic cooperation by partnering with well-known enterprises, universities, and local governments at home andabroad. We improved investor relationship management and communication channels, and received many awards in-cluding the Best Board of Directors and Listed Company with Best Investor Relationship. E?orts were made to make pro-duction sites more sustainable and to build an environmental conservation system. We implemented the Minjiang Riverecological restoration project and pressed ahead with the ecological improvement of Songgonghe River’s basin. What’smore, we fully enhanced the treatment system for solid, liquid, and gas waste and related capacity system, bringing thesustainable development of sites and factories to a higher level. The Company resolutely emphasized the awareness ofresponsibility and accountability to build a CSR system with SOE (state-owned enterprises) characteristics. WuliangyeCharity Fund continued its contribution to implement the national strategy of “rural revitalization” by carrying out targetedpoverty alleviation and charity projects in a systematic and professional way. The Company committed a larger amountof donations to external parties and launched poverty alleviation activities by facilitating education, transportation, and in-dustry development, and was thus awarded the Jinding Prize at the 5th Annual Conference of Chinese Food Enterprises.Responsibility converges power, and actions shape future. 2020 is crucial for the group to make blueprints for the “post-100billion” era, to create a strong start for the “14th Five-Year Plan” and to prepare for its entry into Fortune Global 500 bygrowing into a world-leading company. People at Wuliangye always bear in mind the dream of the great rejuvenation ofthe Chinese nation, seizing the day, and living it to the fullest. By upholding the new development concepts of innovation,coordination, green, opening-up, and inclusiveness, we will write a new chapter with e?orts and growth by initiating a newstart.

Party Secretary and Chairman of Wuliangye Group, and Party Sec-retary and Director of Wuliangye Yibin Co., Ltd.:

Deputy Party Secretary, Director and General Manager of Wuliangye Group,and Deputy Party Secretary and Chairman of Wuliangye Yibin Co., Ltd.:

CSR Data in 2019

Social performance

IndicatorsData

Skilled sta?EmployeesInvestment in targeted poverty alleviationDonations to external parties

Registered volunteers

7,84526,348RMB 133.78 millionRMB 147.73 million

2,075

Economic performance

IndicatorsDataYear-on-year growthOperating revenueNet protsTotal pre-tax protsTotal assetsCash dividends in 2018R&D investment

RMB 50.118 billionRMB 18.228 billionRMB 37.045 billionRMB 106.397 billionRMB 6.599 billionRMB 126.36 million

25.20%

29.84%

22.86%

Customer satisfaction index94.620.94%

Wuliangye exclusive stores1,58725.98%

23.58%

30.77%

50.28%

Patent applications14918.25%

Ex-factory pass rate100%-

Environmental performance

IndicatorsDataEmission of liquid, gas, and solid wastesComprehensive energy consumption

100% compliance Reduction of 3.3%

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Wuliangye site for liquor grains68,667 hectares

We shall have a clear understanding of the status quo by enhancing the political position, and align boththoughts and actions to decisions and arrangements made by the CPC Central Committee, the StateCouncil, CPC Sichuan Provincial Committee, CPC Yibin Municipal Committee, Sichuan Provincial Peo-ple’s Government, and Yibin Municipal People’s Government. We shall adhere to the general devel-opment goals made at the beginning of the year and properly steer epidemic containment and businessdevelopment in a steady and progressive manner based on the general schedule for major tasks. Whilecontinuing to follow the basic guidelines of “one control and three enhancements”, we will underline“three optimizations” and accelerate “three transformations” to ful?ll expected production and op-eration goals of the year.

-Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye

Since February 3, 2020, di?erent segments have resumed production one after another. As of February 10, 2020, Wuliangye resumednormal work and production as a whole. As of February 13, 2020, liquor production operated at full capacity, allowing supporting seg-ments like glass, printing, and bottle capsules to realize 100% production resumption. To guarantee effective epidemic control ande?cient production and operation, the Company has convened multiple special meetings to give guidance on and facilitate work andproduction resumption.

Amid the ght against COVID-19, Wuliangye immediately issued A Letter to the Distributors and the Notice on Handling Recent MarketPriorities with Targeted Measures to strengthen communication with distributors in a human manner and to revitalize market condencethrough measures like optimizing the distributor plan, providing customized nancial services to distributors, and timely authorizing reim-bursement of distributors’ marketing fees. At the same time, the Company implemented six major policies to “benet distributors”, suchas logistics and warehousing assistance, helping distributors to adjust inventories, and providing material and nancial support to coreterminals together with distributors.

Advocating Wuliangye’s charitable spirit bymaking donations

Inspired by Wuliangye’s commitment to charity, peopleat Wuliangye have made contributions on a personallevel, which have brought their love and support tothose in need in a collective manner.Zhou Daiqi, one of Wuliangye’s employees, and hisson-in-law Ye Qing collected and donated 38,000 kg ofvegetables to people in Wuhan.Liu Ding, an employee of the No. 510 Workshop ofWuliangye, and his wife Chen Xiaojuan delivered 30boxes of meals to the Third People’s Hospital of YibinCity for 10 days in a row as lunches for medical sta?.

Lift people out of povertyby charity activities

Support distributors to en-hance market condence

Resume production in an orderly way to createopportunity for further development

4,361 Party members led by example and donat-ed RMB 425,900 in total.Medical and daily supplies including 400,000masks, 100-ton disinfectants, and fresh vege-tables were donated to the front line of the ghtagainst the epidemic, totaling over RMB 1.2 mil-lion.Wuliangye’s brand operators were also encour-aged to make cash and in-kind donations, whichincluded RMB 78.36 million cash and suppliesworth RMB 12.94 million including masks, disin-fectants, and ventilators.

In January, 2020,Wuliangye Group donated to Wuhan Charity Federation,

In early February, 2020,Wuliangye Group donated to Yibin Charity Federation

In January, 2020,Donated Wuliang Chun, a product of the wine series, to theWuhan Charity Federation

The accumulated donations amounted to

In early February, 2020,Wuliangye Group donated to Sichuan Charity Federation

3,000

2,000

1,200

9,200

3,000

RMB '0,000

During the fight against COVID-19 pandemic, wekept employees’ salaries, welfares, endowmentinsurance premiums, medical insurance, unemploy-ment insurance, supplementary medical insurance,work-related injury insurance, maternity insurance,housing provident fund, and enterprise annuitiesunchanged, and laid no sta? o?.The Company guaranteed employees’ safety andhealth by integrating insurances included in “Sci-ence-based Protection Against COVID-19” publicinsurance program.The Company’s labor union released an onlineanti-epidemic initiative to all employees, receivingover 38,000 views.We also actively collected information of employ-ees’ health conditions, communicated anti-epidemicknowledge, and provided support and guidance.The Company organized a series of activities toprovide nancial and material support to employeeswho had di?culties in making ends meet due to theepidemic outbreak.Leaders at all levels, Party organizations, and Partymembers maximized their leadership by settingexamples with 122 community-level Party organiza-tions and over 3,500 Party members ghting on thefront line to combat COVID-19.

Protecting employees witha science-based approach

E?ective person-

nel control

E?ective disin-fectionE?ective epidemicprevention and con-trol mechanism

E?ective publici-ty and guidanceE?ective sup-plies support

We delivered seeds of liquorgrains to farmers as scheduled byvehicles for agricultural materials.By early March, all farmers havehad seeds at hand, ensuring thespring plowing carried out as usu-al.

Efforts have been made onscreening key personnel, diningmanagement, sterilization of majorvenues, body temperature moni-toring, checking masks wearing,transportation control, and sup-plies support.

10 policies have been launchedon performance appraisal, nance,and element support.

Launch of policiesEpidemic preven-

tion and control

Spring plowing insites

Wuliangye Yibin Co., Ltd.

Victory overCOVID-19 Pandemic

Changfasheng, one of Wuliangye’s eight ancient liquorproduction workshops,is located on Gulou Street in theold downtown of Yibin,covering an area of 1,218 m?,and boasting 30 cellars fromthe Ming and Qing dynasties.The mud taken from the fermentation cellar has become apermanent collection of the National Museum of China.

Company ProleDevelopment HistoryReview of 2019Responsibility System

Chapter OneEvolution of Wuliangye

Evolution of Wuliangye｜Source of Imagination and Innovation｜Leadership and Governance｜Sta? Support and Customer SatisfactionSustainability and Environment-friendliness｜Cultural Inheritance and Promotion｜Exchange and Collaboration｜Commitment to Corporate Philanthropy

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

In 1998, Wuliangye Yibin Co., Ltd. was established and listed. As a China Time-honored brand, Wuliangye has remainedtrue to its original aspiration and kept its mission rmly in mind. By producing high-quality liquor for consumers aroundthe world and telling stories of Chinese baijiu, Wuliangye celebrates the 70th anniversary of the founding of the People’sRepublic of China with outstanding development achievements.

Yibin, a city built over 2,200 years ago, has gone by di?erent names in history, such as Bohouguo (a country), Rongzhou(a state), and Xuzhou (a state). The local climate is moderate, and its rainy seasons are hot as well. The local liquor pro-duction can be dated back over 4,000 years ago, and tea plantation over 3,000 years ago. Yibin sits on land that is ratedas “the most suitable region for the production of high-quality genuine distilled liquor at the same latitude in the world” byUNESCO and FAO.The cellar is in the core of liquor production, and the mud in the cellars plays a fundamental role in fermentation.Wuliangye’s cellar cluster was built in 1368 in the Ming Dynasty using the weak acid yellow stick soil which is unique toYibin. Due to its rich nutrients and other essential ingredients, the soil has facilitated the selection and metabolism ofliquor production-related microorganism that nally developed into unique microbial communities and aromatic substanc-es. The more aged the cellar is, the more harmonious and stable the microbial communities are, which generate more ar-omatic compounds and bring out richer fragrance. Therefore, Wuliangye strong-avored liquor is renowned for its uniquearoma and avor.

With unswerving determination and steadfast commitment, Wuliangye has always emphasized craftsmanship and de-tail-oriented e?orts, and continues to promote supply-side structural reform and satisfy the diversied needs of consum-ers across the world.

Wuliangye rose to fame at the Panama-Pacic International Exposition in 1915. As of today, it has received hundreds ofmajor prizes at home and abroad, including In 2019, Wuliangye ranked No. 3 in the Chinese 100 Top Brand Values, No.19 in China’s 500 Most Valuable Brands, No. 40 in Asia’s Top 500 Brands, No. 104 in Top 500 Most Valuable Brands inthe World, No. 302 in the World's 500 Most Inuential Brands, and No. 79 in 2020 Global 500 Top Brand Values.

We explored models of direct-sale stores and exclusive stores while continuing to focus on the distributor network.With 337 new exclusive stores opened, there are now 1,587 exclusive stores in total.Wuliangye’s sales network now covers 70 countries and regions, having set up 17 international duty-free shops.With accelerated globalization, marketing centers towards markets in Europe, Asia-Pacic, and North America havebeen established in Dusseldorf, Hong Kong, and New York respectively. The Hong Kong branch has fully rolled out itsdistribution network.Build smart retail system - With the o?cial launch of Wuliangye Cloud Store, Wuliangye’s exclusive stores in Chinahave begun to provide cloud services.

Lasting liquor brand owes to ages of preservation;

Quality liquor requires life-long cellar storage

“The liquor in the cup resembles the color of jade, and evaporates like mists rising from a vale. “Ithas a clear and rich ?avor, neither weak nor murky. It tastes sweet and spicy, neither pungent nor irri-tating.”

-Huang Tingjian, a poet of the Song Dynasty

Map of Wuliangye’s eight ancient liquor production workshops

Company Prole

A lasting aroma preserved through a thousand-year legacy

Maintain high-qualitydevelopmentCo-create a happy

life

Corporate vision

Corporate mission

Core value ideas

Corporate spiritsCore values

Create outstanding experiencesfor customersCreate happiness for employeesCreate returns for investorsPromote our historic leg-acyCo-create a happy life

The Company is committed to de-veloping into a healthy, innovative,world-leading enterprise that keepsdeveloping in a high-quality, sustain-able, and rapid way.

Stay true to the original aspi-ration and remain realistic andpragmaticKeep making progress and in-novation

Stay honest and quality-orientedAdvocate craftsmanship and in-heritance-inspired creation

Remain true to its original aspiration and promote the spirit of the Chinese nation

A business card of the country and a brand of the world

Global Presence of Wuliangye’s Strong-avor Liquor

1112Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Wuliangye follows Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implements theimportant guidance of the 19th CPC National Congress and directions given by General Secretary Xi Jinping on worktasks in Sichuan Province, taking the lead to fulll political, economic, and social responsibilities for state-owned enter-prises.

Development historyCelebration of the 70th anniversary of the founding of the People’s Republic of China

Milestones in 70 years’ AdventureIn 1950, the oldest liquor production workshops in Yibin,Changfasheng and Lichuanyong, joined hands with an-other 4 aged local workshops, Zhangwanhe, Zhongsan-he, Tianxifu, and Quanhengchang, to establish the YibinDaqu Liquor Production Industrial Joint Venture.In 1952, the Venture changed its name to Yibin MonopolyState-owned No. 24 Liquor Distillery of Southern SichuanMonopoly Company.In 1955, its name was changed to Sichuan Local State-owned Yibin Distillery.

In 2011, Wuliangye won the National Quality Award forthe third time, making it the only company to receive theprize three times in the liquor industry.In 2012, the “Chinese Baijiu Ancient Workshop” programwas included in the Chinese Tentative List of World Cul-tural Heritage, with “Yinbin Wuliangye Ancient Workshop”being part of it.In 2013, the “Wuliangye Ancient Cellar” site was putunder national-level protection with the approval of theState Council.In 2015, Wuliangye won a number of gold awards atExpo Milano.In 2017, Wuliangye opened a new chapter by initiating afresh start.In 2018, “Wuliangye Ancient Cellar Group and ProductionWorkshops” was incorporated into the list of National In-dustrial Heritage by the Ministry of Industry and Informa-tion Technology.In 2019, Wuliangye was included in the China-EU Geo-graphical Indication list, winning recognized protectionfrom the EU as a geographical indication product of Chi-na.

In 1991, Wuliangye won the title of “China Well-KnownTrademark”, ranking high in the “China Top 10 Well-Known Trademarks”.In 1995, Wuliangye was given the title of “China Best Li-quor Producer”.In 1998, Wuliangye Co., Ltd. was listed after being re-structured.In 1978, Wuliangye low-alcohol liquor was successfullydeveloped, which was praised as “Wuliangye, the famousliquor, with an even better taste” by Hua Luogeng, a well-known mathematician.

In 1959, the name was changed to Sichuan Local State-owned Yibin Wuliangye Distillery.In 1963, Wuliangye participated in the National LiquorAssessment Conference for the first time and won firstplace, being awarded with the “National Best Liquor”gold medal. After the debut win, Wuliangye won the prizeagain in 1979, 1984, and 1989.In 1964, the name was changed to Sichuan YibinWuliangye Distillery.

In 1987, “Wuliangye Computer-based Blending ExpertSystem” won the Major Scientific Achievement Awardand Scientic Advancement Award by the former Ministryof Commercial Businesses. Wuliangye reached “unprec-edented heights in blending” in terms of manual blendingand computer-based blending expertise.In 1990, Wuliangye won the National Quality Manage-ment Award, the most recognized award in quality man-agement in China.

In 2003, Wuliangye won the “National Quality Manage-ment Award” again.In 2005, the mud taken from Wuliangye’s ancient fer-mentation cellar became a permanent collection at theNational Museum of China, which is the only “living relic”preserved by the Museum.In 2006, it was designated as a “China Time-honoredBrand”.In 2008, the “Traditional Baijiu-Making Techniques ofWuliangye” were listed as a National Intangible CulturalHeritage by the State Council.

1949-1955

2011-20191991-20001966-1980

1956-1965

1981-19902001-2010

1314

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

By leading the implementation of the four-step strategy from “quality & performance orientation” to “diversied devel-opment with one business at the center”, Wang built Wuliangye into the “China Best Liquor Producer”, marking therst signicant success in the course of the development of the Company. In addition, he personally designed thecorporate logo and other symbols. “The 100-million-m? liquor city” corporate site was built, shaping baijiu culture withWuliangye’s characteristics. He was awarded the “Lifetime Achievement Award for 40 Years’ Reform and Opening-upin Chinese Liquor Industry” and the “Top 10 Most Inuential Entrepreneurs in China”.

Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, and Zeng Congqin, General Manager of Wuliangye

Group and Chairman of Yibin WuliangyePresented awards to the seven key gures in Wuliangye’s Development or their relatives, and extended warm congratulations and sin-

cere greetings, as part of the celebration of the 70th anniversary of the founding of the People’s Republic of China.

The 70th anniversary of the founding of the People’s Republic of China - Key gures in Wuliangye’s Development

The founder of “China Best Liquor Producer”

Wang Guochun

He fought at the forefront of the market, and

turned the tide of the adverse situation when

appointed at the most di?cult of moments. He de-

voted over two decades of his life wholeheartedly

to the development of the Company.

The pioneer of Wuliangye’s marketing

Liu Zhongguo

As the daughter of Fan Yuping, the inventor ofmanual and computer-based blending tech-nology, she followed in her father’s step andhas been fully committed to scientic researchfor over 30 years. The two generations haveauthored an important chapter of Wuliangye’shistory spanning 60 years.

The master of Wuliangye’s crafts-manshipFan Guoqiong

Sparing no e?orts, he carried out a number of innova-tions including the manual and computer-based blend-ing expertise. He was acclaimed for passing downknowledge and techniques to younger technicians. Per-sistent painstaking e?orts led to numerous innovationsand mastery of liquor-making secrets. Personalizedexemplification and inspiration enable craftsmanshipto pass down to younger generations, achieving world-wide acclaim.

Originator of “manual and comput-er-based blending”Fan Yuping

He worked in a meticulous and diligent mannerwith high self-discipline and integrity. With focuson scientic research which supports growth, hisname will go down in the history of Multiangle.The founder of Wuliangye’s R&DTang Wanyu

It took him six years to develop the “selected”low-alcohol Wuliangye liquor. By rigorouslymaintaining product quality, he laid the foun-dation for Wuliangye to gain an internationalreputation.

Decoder of low-alcohol Wuliangyeliquor“Guardian” of Wuliangye qualitymanagementLiu Peilong

While inspecting workshops as a common folk,

he inuenced his sta? positively by his words and

deeds, sticking to enhancement and inheritance

of liquor-making technology and promoting inter-

national recognition of Wuliangye’s craftsman-

ship.

Preserver of Wuliangye’s traditional

production processes

Wen Youyuan

Review of 2019

The Company started organizational transformation by dividing seven marketing centers into 21 marketing regions,which manage 60 marketing bases to promote vertical delayering in regions.Wuliangye participated in the 100th China Food & Drinks Fair, exhibiting major liquor products like the 8th-generationclassic Wuliangye.The Company o?cially started streamlining liquor brand series to eliminate products that fail to contribute to the mainWuliangye brand.The opening ceremony of the SOE Party Construction Research Center and Party School of CPC Wuliangye Com-mittee was held.The Company took part in the 2nd Belt and Road Forum for International Cooperation.Inheritance and Eternity - 2019 Classic Wuliangye Upgrading Ceremony was held, marking that the 7th-generationclassic Wuliangye would be discontinued, and the 8th-generation would take center stage.The Company donated RMB 20 million to the rescue and restoration after the earthquake in Changning.In 2019, Wuliangye ranked No. 19 in China’s 500 Most Valuable Brands with a brand value of RMB 216.598 billion.Wuliang Nongxiang Series Liquor Company was established, focusing on 4 major liquor products in the Chinese mar-ket, namely Wuliang Chun, Wuliang Chun, Wuliang Tequ, and Jianzhuang.The Company participated in the 2019 APEC China CEO Forum, providing support to build a new future for theAsia-Pacic region.The project of “Analysis on Microbial Structure and Metabolic Characteristics of Single-grain and Multiple-grain SolidFermented Strong-avor Liquor” completed together with Jiangnan University passed the review organized by theChina National Light Industry Council.China Alcoholic Drinks Association has issued An Initiative to Establish a Collectors Club of Wuliangye’s Aged Liquor,supporting the collection of aged Wuliangye liquor.By signing a strategic cooperation agreement with Alibaba Group, the Company has speeded up its digital transfor-mation.The Company ranked No. 40 in 2019 Asia’s Top 500 Brands, marking its 5th entry into the list in a row. Wuliangyeranked No.2 in the 2019 Top 10 Asia Food and Beverage Brands, growing into a “super brand” in the Asian food andbeverage industry that has a large voice on the international stage.The Company participated in the Splendeurs de Chine - Soirée de célébration du 70ème anniversaire de la fondationde la République populaire de Chine in Paris sponsored by the Ministry of Culture and Tourism.The Company signed a strategic cooperation agreement with Huawei, covering areas of digital transformation, busi-ness management, and marketing.The Company sponsored the “Gold Panda” International Communication Award, contributing to build a community ofa shared future for mankind and promote capacity construction for international communication.Wuliangye was included in the China-EU Geographical Indication list, winning recognized protection from the EU as ageographical indication product of China.At the 23rd Wuliangye 1218 Dealer Conference to Develop Win-Win Partnerships, Wuliangye Groupdeclaredthat itssales had made a historic leap by exceeding RMB 100 billion.The 2019 Sichuan Baijiu National Promotion Tour concluded successfully in Beijing after being events in Xi’an, Gui-yang, and Shanghai.

FebruaryMarchApril

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August

SeptemberOctoberNovemberDecember

1516Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

King of Liquor forges ahead amid moments of honors and awards:

Since 2008, Wuliangye has continued to release CSR reports to continuously establish and improve CSR manage-ment system and implementation.

Improve managementby reporting

Improve implementation bymanagement

Responsibility SystemThe Company has set an example in responsibility management.

Report Compilation

CSR culture con-struction

CSR activitiesCSR concept imple-mentation

Integration intocorporate strate-gic development,daily manage-ment, and busi-ness operation

CSR organiza-tion governance

CSR evaluationsystem

CSR systemconstruction

Establish CSR implementation system

Make society more

harmonious

Create happiness foremployeesCreate returns for in-vestors

Create outstanding expe-riences for customers

Make the environmentgreener

Wuliangye continues to increase its corporate value, o?er continuous cash dividends, standard-ize corporate governance, and improve information disclosure compliance to safeguard equitiesof investors.As a corporate citizen, Wuliangye has always fullled its social responsibility as an SOE andvalued charity to seek balanced corporate and social development.Wuliangye coordinates production and operation with environmental protection, realizing greenproduction and ecological conservation.

Employees are valuable assets for Wuliangye. A sound salary system protects employees’ in-terests. Diversied activities promote harmonious family relationships. A reliable support systemo?ers a helping hand to employees in need. In this way, employees develop together with theCompany.

Innovative products meet diversied needs of consumers and deliver ultimate experience. Qual-ity control safeguards consumers’ health. Honest operation protects consumers’ interests. Weadvocate responsible drinking and harmonious society.

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Communication with stakeholders

On-site ex-

changes

Communication via

traditional media

Communicationvia new media

Hotline for consumer compliantHotline for cracking down on fake

productsInformation disclosureTelephone-based communication with

investorsNewspapers and magazines

TV and radio

O?cial WeChat account

O?cial Weibo accountWuliangye Family appirm.cninfo.com.cn/O?cial websiteGeneral meeting of shareholders

Labor unionWorkers' congressSupplier meetingDealer conferenceInvestor exchange meetingSpecial reporting to government

Response to stakeholders

Employees

Consumers

Suppliers

Environment

StakeholdersConcerns and requirementsCommunication and response methods

Compliance with laws and regulationsRealization of high-quality green economicdevelopmentPublic benet activities

Compliance managementLegal tax paymentTargeted poverty alleviationCommunity investmentCreation of jobsVolunteer service

Return on investmentCorporate performance growthCorporate governance and internal controlcompliance

Active distribution of dividendsInformation disclosureGeneral meeting of shareholders was convened.Compliance governanceInvestor exchange meeting

Salary and welfare guaranteeCapacity growthVocational safety and healthPromotion and development mechanism

Timely payment of salaries in fullEndowment insurance, medical insurance, unem-ployment insurance, work-related injury insurance,maternity insurance, and housing provident fundEnterprise annuitiesEmployee trainingPeriodical physical examinationWork safetyIntra-company competition

Responsible marketingHonest operationBusiness guidanceProfessional services

Formulate rules on marketing servicesFormulate support policies and services rules forexclusive storesProvide training for dealersProvide training for marketing personnel

Food safetyProduct qualityAfter-sales serviceConsumer health

Stringent quality managementCrack down on fake products and safeguard legalinterestsEstablish after-sales service center“Excessive drinking is harmful to your health” ismarked in prominent areas on the liquor’s exte-rior package together with slogans encouragingresponsible drinking.Fair procurementCredibility and integrity

Establishment of an open, fair, and equitableprocurement systemTimely settlementEnvironmental protectionEnergy conservation and emission reductionEnvironmental pollution treatment

Ecological constructionDisposal of gas and solid wastes and emissioncontrol

Shareholders

GovernmentCommunity

Dealers

Identication of material issuesFocus on respective concerns and requirements of stakeholders, analyze material issue matrix,and identify CSR core and major issues

Impact on sustainability

Concern level of stakeholders

Information security

Industrial cooperation andexchangesCorporate governance

Brand building

Supply chain manage-mentBusiness performance

Dealer relationshipEmployee’s communityof shared interests

OccupationalhealthTechnologicalinnovationResponsibledrinking

EnvironmentalprotectionTargeted pov-erty alleviationPublic welfare

Product quality man-agementWork safety

Climate changeProblem re-sponseWorking environment

Lichuanyong - one of Wuliangye’s eight ancient liquorproduction workshops,was originally named “Wende-feng”, and the name Lichuanyong has been used sincethe late Qing Dynasty.It is located on Changchun street in the old downtownof Yibin ,covering an area of 1,426 m?, and boasting 29cellars from the Ming and Qing dynasties.

Chapter TwoSource of Imaginationand Innovation

Scientific and techno-logical R&DInnovative productQuality managementWork safety

Wuliangye upholds the combination of tradition and innovation and vigorously enhances the construction of a scienticand technological innovation platform to build a comprehensive innovation system. By investing more resources intoresearch on liquor production ecology, liquor production techniques, and baijiu avor, it continues to nd new ways to in-novate across the whole product chain from raw materials, R&D, production, and nal quality, resulting in superior liquorquality.

Scientic and technological R&DHighlight scientic research to drive the development of the industryConstruct a comprehensive innovation system

In December 2019, Wuliangye Academician Workstation was o?cially inaugurated. It was jointly built by Wuliangyeand Chen Jian, academician of Chinese Academy of Engineering, and his team, centering on research on microor-ganisms of strong-avor liquor production, control and adjustment of solid fermentation, technological guarantee ofliquor quality R&D, and food safety control. It will leverage the four high-level functions of strategic consultation of ahigh-end science platform, high-end science research, research achievement transformation and industrialization,and talent cultivation to empower the Company by science and technology.

Inauguration ceremony of Wuliangye Academician Workstation

Place customer experience as the main focus and continuouslymeet market requirements

Talent introductionInnovation and reform

R&D mechanism

Supply-side structural reform with liquor and process innovationat its centerOn-going “Thousand-Hundred-Ten” talent program

Scientic researchplatform

Sichuan ProvincialEngineering TechnologyResearch Center onLiquor Grains

Wuliangye Academi-

cian WorkstationChina Liquor BigData CenterNational IndustrialDesign CenterNational EnterpriseCompetence Center

China Baijiu CollegeScientic andTechnological JointInnovation CenterNational Quality Super-vision and InspectionCenter of Liquor Products

China Light Industry KeyLaboratory on Strong-a-vor Liquor Solid Fermen-

tation

Sichuan Solid-fermentedLiquor Production Engi-neering CenterInternational Joint Re-search Center of Qualityand Safety of Alcohol-

ic Beverages (BaijiuBranch)

The Company sets up the Product R&D Business Unitcomposed of three special design centers of plasticpackaging, glass products, and paper packaging.Based on a complete industry design loop, Wuliangyehas achieved many “rsts” in the industrial design ofthe liquor industry, and its capacity for sci-tech inno-vation and R&D design has been acknowledged bynational authorities.

The Company’s Product R&D Business Unit was recognized as a “National Industrial Design Center”

Inauguration ceremony of China Liquor Big Data Center

Focus on talent cultivation with talent introduction as a supplementary focus.Cooperate with leading teams and professional colleges and universities.R&D experts enhance their expertise through external training and studying to continue to develop high-qualityproducts.In 2019, Wuliangye introduced Professor Michael C. Qian, an internationally-renowned avor chemist at OregonState University in USA to the Company. After the application for establishing a municipal platform was approved,it established an International Joint Lab on Baijiu Flavor Chemistry as scheduled.

Annual R&D expenditure

An increase comparedwith 2018

Ongoing re-search project

R&D personnelNew R&D per-

sonnel12,63650.28782,71939

RMB'0,000

%PersonsPersonsPersons

Progress in R&D projects

Research and Application Demonstration of Special Or-ganic Fertilizer for Liquor Sorghum Prepared by Biotrans-

formation-based Distiller’s Grain

Application of End-Cloud Integrated Intelligent SpectralData Analysis System in Fermentation of Fermented

Grains

Strong-Flavor Liquor’s MetabolicMechanism of Acid Esters andHomeostasis Control MechanismWith JiangnanUniversity

With ChengduInstitute of Biology,Chinese Academy

of Sciences

Mechanism and Feature Analysis of

Wuliangye’s Multiple Grain-based

Production SystemFingerprint Analysis and En-zyme Production Microbiota ofWuliangye’s Baobaoqu Enzyme

SystemResearch on Wuliangye Daqu’sUnique Active Micromolecule Ingre-

dients

Platform For Frontier Research of Baijiu Flavor Chemistry

Research on How 5 Grains Shape

Wuliangye’s StyleWuliangye’s in-house R&D projects were nancially

supported by the state

School-enterprise and college-enterprise coopera-

tion projects

Organize forums to boost R&D

The Company participated in the 2nd Sichuan TechnologicalInnovation and IP Protection Forum.The Company participated in the inauguration ceremony ofthe Traditional Fermented Food Committee of the ChineseInstitute of Food Science and Technology, and academicconference.The Company was elected Vice President of Traditional Fer-mented Food Committee of the Chinese Institute of FoodScience and Technology.The Company visited Institute of Brewing & Distilling (IBD),University of Cambridge, and Imperial College London forinternational exchanges.The Company participated in the 2019 International DistilledSpirits Innovative Technology Forum.

The Company dispatched R&D personnel to participate in the World Spirits Alliance (WSA) conference.

Zhao Dong, Deputy General Manager and Vice ChiefEngineer of Yibin Wuliangye, led a delegation to visit IBD.

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

PatentsProtect R&D achievements and improve innovation capacity

Invention

Utility model

Design

Invention

Utility model

Design

Invention

Utility model

Design

1,485

Patents applied in 2019Patents granted in 2019Accumulative valid patents

Recognition by authorities

Wuliangye and Jiangnan University jointly completed the project of “Analysis of Microbial Structure and MetabolicCharacteristics of Single-grain and Multiple-grain Solid Fermented Strong-avor Liquor”, providing signicant theo-retical and technical support to enhance liquor quality. After being applied in the liquor industry, the project resultshave generated outstanding economic and social benets. According to China National Light Industry Council, theproject has delivered world-leading technologies which are worthy of application in a wider range.

School-enterprise cooperation projects were rated world-leading.

The project of “Research on Characteristic Flavor Substances ofStrong-avor Liquor” was awarded the 3rd prize of the Scienceand Technology Progress Award of China Alcoholic Drinks Associ-

ation.

Outstanding Enterprise of Sichuan Technological Innovation and

IP Protection 2018

The Company has strictly implemented the well-dened Wuliangye brand strategies of “1+3” and liquor series of 4major products targeting the Chinese market, providing diversied choices for consumers.

Innovative productOptimize brand structure to ensure quality choices for consumers

4 strategic liquor products targeting the Chi-

nese market in the liquor seriesWuliang Chun (Spring), Wuliang Chun (Rich

Flavor), Wuliang Tequ, and Jianzhuang

Centering on the new version of 52-degree classic Wuliangye, the Company has endeav-ored to enhance the brand position as a high-end, fashionable, international brand.

Core product of the 8th-generation classic

Wuliangye

501 Wuliangye (cellars from the Ming

and Qing dynasties)

39-degree Wuliangye

Wuliangye in a wedding ring-shapedbottle co-presented with Swarovski

Innovative product with better consumer experience

After seven iterations, the 8th-generation classic Wuliangye made its debut in 2019. On May 20th, 2019, “Inher-itance and Eternity - 2019 Classic Wuliangye Upgrading Ceremony” was held, discontinuing the 7th-generationclassic Wuliangye and inaugurating the 8th-generation. After entering the market in June 2019, the 8th-generationhas been widely recognized by consumers with sales progressing steadily.

Successful upgrade to the 8th-generation classic Wuliangye

A benchmark for Chinese strong-avor liquorImproved quality, packaging, and anti-counterfeiting measuresEmbodiment of Wuliangye’s craftsmanship spirit of “constant improvement”Highlighted Wuliangye’s unique style of “long-lasting aroma, rich flavor, andwell-balanced and clear taste”High-quality packages delivering a more convenient and satisfying user experienceIntelligent code management system interlinking bottle caps, packages, and par-cels, which allows traceability throughout all links of production, transportation,warehousing, and distribution.

Exclusively produced in 501 Wuliangye’s special workshop.Exclusive cellars that can be dated back to 1368 in the Ming Dynasty.Renowned craftsmen led by Chinese Liquor Production Masters with over threedecades of experience.Exclusive edition for each year with unique code for every bottle.Begins a dening chapter in the history of baijiu with cutting-edge techniques, com-plete dedication, and sophisticated renement.

Comments on 60-degree Wuliangye liquor produced in 1988 in drum-shaped bottle from 36 chief liquor tasters of Chi-na: “The liquor looks a little yellow but still clear. Its rened taste through years of fermentation consists of a blend ofaromas from the aged cellar, vinasse, and enzyme, bringing out a rich avor and long-lasting fragrance. When it en-ters the mouth, it is sweet, rich and sticky, when it comes down the throat, it is refreshing, smooth, its aromatic tastesfull, rich and rightly mixed, lasting, leaving an unforgettable tasting experience. “The National Baijiu Tasting Committee carried out a blind assessment on 197 samples of baijiu bought from the mar-ket in 2019. It turned out that 35-degree and 50-degree Wuliang Chun (Spring) won the rst place in their respectiveniche segments. In particular, 35-degree Wuliang Chun (Spring) received the highest sore among all samples, with

92.8.

Wuliangye was awarded the Most Popular Time-honored Brand at the 2019 (16th) China Time-honored Brand Expo.501 Wuliangye was awarded 2018 China Liquor Brand of Highest Investment Value.You Liquor won 2019 China Liquor Body Design Award.The 58-degree Blast Liquor won 2018 Annual Qingzhuo Award.

Consumer acknowledgement

501 Wuliangye - Ultimate liquor from cellars of the Ming Dynasty

The 8th-generation classic WuliangyeThe Company has issued Standards on Product Development and Clean-up under Wuliangye Brand and Standards on Prod-uct Development and Clean-up under Wuliangye Series Liquor Brand.The Company negotiated with dealers in a fair way according to laws and regulations to promote rectication and clean-up.This action has cleaned up 1,284 kinds of products and 122 sub-brands in total, including VVV, Wuliang PTVIP, and 1918.Meanwhile, the Company employed strict management and control of the liquor series and healthy liquor.

The Company has implemented a “brand management optimization” project to “streamlinethe brand tree”, ensuring quality choices for consumers.

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Information and digital technologies are important supportive means to realize sustainable management onproduct life cycles, ensuring all products meet quality safety requirements.Implement periodical control on product life cycle

Food safety responsibilityStrictly implement the requirements that Party and operationleaders share the same responsibility on food safety issues,and promote practical implementation of food safety responsi-bilities shouldered by related parties.At the beginning of the year, break down targets of food qualitysafety level by level and require responsible parties to sign thesafety responsibility agreements for better implementation.

Enhance management of newproductsIdentify and remedy quality defects by testingnew products;Organize hygiene test for packaging materialsthat are in direct contact with liquor body;Organize appearance, physical-chemical, andhygiene test for nished liquor warehoused;Organize special tests for package productionlines;Organize analysis and tests for nished liquorsampled randomly.

Blending and finishing of liquor tobe packaged

Food quality safety management covers thewhole process, which ensures product com-pliance and meets packages’ requirements inproduction and sales.

Meetings on quality analysisFor problems identified in aspects of newproduct quality, packaging material quality,control e?ect of package production process,and after-sales feedback on products,The meetings analyze causes of problemsand propose measures for improvement andprevention to facilitate product quality upgradeand food safety.

Grain acceptanceSupervise all links and processes throughout grain acceptanceby non-scheduled tests on grain samples and on-site inspec-tion towards chosen regions;Enhance inspection on how grain acceptance workshops ex-amine grains (including taking samples from a single vehicle,from full tests, from integrated samples retained, and fromwarehoused grains) to timely identify, analyze, and resolveproblems.

Quality and safety of process waterCarry out risk analysis on water source, water in process, n-ished water, water in pipeline, water at pipe end, and additionalwater, and take measures accordingly.

Site for liquor grainsIn-depth surveys have been carried out in terms of eld culti-vation including seed selection and breeding, soil, climate, re-sistance against pests and diseases, as well as pesticides andchemical fertilizers, and warehousing and transportation;Cooperation with on-site suppliers to analyze quality problemsto improve output quality;Realization of grain production in a local-based and upgradedmanner on the special site.

Improve a num-ber of regulationsincluding Man-agement Guide-lines on QualityVerication.

System im-provement

Training

Food safety exper-

tise

Innovation of productquality verication

Enhance measur-ing equipment79 employees dis-patched to attendspecial trainingsessions.Roughly 700 newemployees partici-pated in training.Regular profes-sional trainingsessions andpractical operationassessment.

Full coverage.Over 2,600 em-ployees partici-pated in examson essential foodsafety knowl-edge.

Replace tradi-tional test meth-ods with equip-ment.Quality verifica-tion from multipledimensions.

Measuring instru-ments with 100%weekly inspec-tion rate.New equipmentwith 100% in-spection rate.

The steps of cellar entry, vinasse extraction, and distillation are carried out in a layered manner. After quality-based liquorabstraction, liquor of the same quality is stored in jars together. Liquor storage follows a level-to-level model, and only the15% of the nest will be selected as Wuliangye liquor.

The Company has set upregulations and processesto standardize quality man-agement .

Enhance control throughoutthe whole process of foodquality safety and continu-ously deepen holistic quali-ty management

Enhance the comprehen-sive skill set and capacity ofpersonnel engaged in foodquality safety managementto build a team of excellenttalents.

Innovate quality verificationmodel and improve productassembly verification quali-ty.

Enhance manage-ment of measuringequipment and orga-nize the tracing andtransmission of mea-suring values.

Essential food safe-ty knowledge train-ing covers all sta?.

Quality managementImprove the system to ensure a high-quality product

Implementation of strict quality management process

Qualitymanage-ment

Systemand reg-ulations

Wholeprocesscontrol

Popular-ized edu-cation

Measuringequip-ment

Talentcapaci-ty

Qualityverica-tion

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

E?ective operation of quality management system

Compliance with industry supervision standards

Continue to modify technological standards

The Company’s management systems of food qualitysafety and measurement operate in an e?ective way;Quality, food safety management system, and prod-uct quality certications by China Quality Mark Certi-cation Group Sichuan Co., Ltd.Annual evaluation of measurement managementsystem by Sichuan Sub-branch of China CerticationCentre for Metrology and Measurement

Formulate enterprise standardsThe Company formulated five enterprise standardsincluding Requirements on Appearance Quality of Fin-ished Liquor and Measures for Screening Metallic Ele-ments in Liquor and Rapid Quantitative Detection.We continue to improve the original standards.The Company renewed its registration of products stan-dards of High Alcohol-Level Strong-Flavor Liquor andLow Alcohol-Level Strong-Flavor Liquor.

Standardize industry developmentSecretariat of SC2 Strong-Flavor Sub-committee ofNational Technical Committee 358 on Chinese Spirits ofStandardization Administration of China.Application and draft compilation of nine local standardsincluding Liquor Grain-Sorghum.Formulation and submission of Strong-avor Liquor na-tional standard to Standardization Administration of the P.R. China.

Yibin Municipal Administration for Market Regulation examined Wuliangye’s whole food production process, and itmet all standards.Yibin Customs inspected Wuliangye’s quality management of production, employees, and products, and all of its workcomplied with related requirements.Wuliangye has been operating in line with state laws, regulations, and standards including Food Safety Law, Mea-sures for the Administration of Food Production Licensing, General Hygiene Regulations for Food Production, Mea-sures for the Administration of the Routine Supervision and Inspection of the Food Production and Operation, andProvisions on the Recordation Administration of Enterprises Producing Exported Food.Formulate standards and regulate industry technologies

Quality manage-

ment system

MeasurementmanagementsystemFood HACCP(Hazard Analysisand CriticalControl Point)managementsystem

Total qualitymanagement

National awards

China Association for Quality - Outstanding Contributor to 40 Years’ Total Quality ManagementBenchmark Enterprise for National Industrial MeasurementDemonstration Entity in Yibin QC Activities3 Excellent National Light Industry QC Achievements and 3 Excellent Yibin QC AchievementsMs. Chen Lin, General Manager and Chief Engineer of Yibin Wuliangye was given the 2018-2019 IndividualPrize of China Quality Award and elected Outstanding Individual of China Quality.

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Adhering to the “people-oriented” safe production concept, Wuliangye has established an e?cient and sound occupation-al health and safety management system to safeguard employees’ health and safety, as well as the safe development ofthe enterprise.

Work safetyPrioritize precaution and guarantee enterprise development

Establish a long-term safety management mechanism

Potential risks iden-tication

Safety system

1. Implement an occupational health and safety man-

agement system, acquire system certification, andachieve a good safety management performance.

2. Formulate the Responsibilities on Occupational

Health and Safety, and establish an occupational healthsupervision accountability system centering on “dualresponsibilities” for each position.

3. Implement the Manuals and Procedures of Occupa-

tional Health and Safety Management and SupervisionRegulations on Occupational Disease Prevention andControl.

1. The Work Safety Committee is the highest author-

ity responsible for the Company’s safety manage-ment.

2. The Company’s Work Safety Supervision Depart-

ment is responsible for managing work safety.

3. All entities have set up management organs for

work safety.

4. The primary responsibility of work safety is ful-

lled level by level.

5. The Company adopts a list-based management

system for work safety.

1. Training of managers at all levels.

2. “3-layered” education and training on

safety education.

3. Training on special work safety.

4. Safety education and training for all

employees.

5. Safety education and training on daily

work.

6. Safety education and training for job

resumption and change.

1. Improve emergency response system.

2. Formulate science-based emergency response

plan.

3. Strengthen emergency infrastructure construc-

tion.

4. Enhance education on emergency response.

5. Organize emergency drills.

1. Make daily inspection a regular assign-

ment.

2. Make special inspection more thorough.

3. Make segment inspection more profession-

al.

4. Make potential risk treatment more system-

atic.

1. Management sys-

tem.

2. Reward and punish-

ment system.

3. Procedural system.

4. Substantive system.

5. Operating proce-

dures.

Life rst

Create a safeenvironment

Enhance safe-ty awareness

Safe develop-ment

Eliminate unsafeconditions inwork

Rectify employ-ees’ unsafeactionsSafety man-

agement

The Company has promoted safety management through culture construction, committing to build a safety culture sys-tem prioritizing precaution. To enhance employees and their families’ safety awareness, the Company has held an arrayof activities, such as Work Safety Month, 119 Fire Awareness Month, Yibin Work Safety Month, and Work Safety LawAwareness Week, as well as popularized education on safety knowledge to communities, schools, and workshops.

Diversify safety culture

Launch ceremony of 2019 Work Safety Month

Popularized education onsafety knowledge to schools

Occupational healthOrganization structure

Training on safety

Emergency responseconstruction

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Maintain good safety performanceThe Company has kept a record of zero re accident for 35 years consecutively, and obtainedOHSMS (Occupational Health and Safety Management System) certication.

ZeroZeroZeroZeroWithin acceptable rangeWork safety liability acci-dent above normal level

Fire liability accident

above normal level

Equipment liability acci-dent above severe level

Occupational diseaseNumber of people with

major and minor injuries

Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye; Zeng Congqin, Chairman of Yibin

Wuliangye; and Chen Lin, General Manager and Chief Engineer of Yibin Wuliangye led a team to inspect safety work

upon the coming of the Spring Festival and National Day holiday.

Practical production and operation safety

Basic management on safetyTargeted improvement in key areas

Enhance science-based safety

management

The Company purchased high-techprotective installations and equip-ment and labor protection supplies,spending RMB 29.62 million in total.

All employees have received phys-ical examinations, and employeesworking in hazardous environmentswould receive additional examina-tions.

The Company has offered allowancesfor high temperature and dust.

The Company employed certied oc-cupational health service providers todetect occupational hazard factors.Safety protec-tion environ-

ment

Protection

Physical examination

Detection

Protective operation fee

Implement primary safety re-sponsibility level by levelPromote rule of law in worksafetyImprove “dual-control” mecha-nismStrengthen identification andtreatment of potential risksBoost safety knowledge popu-larization, training, and educa-tionFacilitate emergency systemconstruction

Protection against thunder andstatic electricitySafety of special equipmentElectrical safetyHazardous chemicals safetyFire safety in assembly occu-panciesCombustible and explosive areasafetyConstruction safetySafety in dangerous operation

Promote list-based work safetyPromote digitalization of safetymanagementPromote science-based safetymanagementEstablish a management sys-tem for risk factors

Wuliangye’s re brigade was awarded honorary titles of “National Leading Labor Unit” and “National Civilized Youth Unit”.It was awarded “Sichuan Excellent Full-time Fire Brigade” by Fire and Rescue Department of Sichuan Province.It was recognized as “Professional Rescue Team for Hazardous Chemicals in Sichuan Province” by the O?ce of Sichuan Pro-vincial Emergency Committee.

Fullling its corporate social responsibilities, Wuliangye has promoted safety knowledge in schools, communities, and nurs-

ing homes through training, which was warmly welcomed by the community.

The full-time re brigade held a reghting skills competition.Wuliangye’s full-time re brigade participated in the rescue for the

re accident of a vehicle carrying hazardous chemicals on Yib-

in-Leshan Expressway.

Enhance emergency response and fulll social responsibility

Empower systematic construction of emergency rescue

Fulllment of social responsibilities

There are 107 full-time reghters so far.In 2019, the re brigade carried out 11 reghting opera-tions and 6 external rescue tasks.It participated in the rescue e?ort after the earthquake inChangning on June 17th, and received high praise fromYao Sidan, Vice Governor of Sichuan Province.In the re accident of a vehicle carrying hazardous chemi-cals on Yibin-Leshan Expressway on Sept. 19th, it rescuedthree people, evacuated over 20 others, and recoveredproperty with a total worth of more than RMB 5 million.It participated in roughly 60 public service activities, suchas catching snakes.

ResponsibilityResponse

PlanPrevention

Emergency organization

Emergency drill

Emergency system

Emergency facilities

Leading group on emer-gency rescueCommand center foremergency rescueProfessional emergencyteamsFull-time re brigadeEmergency organizationsin all units

Formulation of Emergen-cy Management Regu-lations on Work SafetyAccidentsEmergency rescue planOn-site response plan

Company’s emergencycommand centerMini-re stationAutomatic re control sys-temEquipment for emergencyrescue

Comprehensive produc-tionEmergency drill for safetyaccidentsSpecial emergency res-cue drillRegular emergency drillat production group levelTraining on emergencyrescue knowledge

The Company has set up a full-time re brigade that is capable of emergency rescue for various disasters and accidents.While safeguarding the Company, it has actively participated in external rescue to fulll its social responsibilities.

Quanhengchang - one of Wuliangye’s eight ancient liquor produc-tion workshops,is located on Changchun Street in the old downtown of Yibin,covering an area of 1,426 m?,and boasting 27 cellars from the Ming and Qing dynasties.

Chapter ThreeLeadership and Gover-nance

Party’s leadershipCorporate governanceInternal controlIntegrity construction

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Uphold principles of the 19th CPC National Con-gress.Strictly implement the study system of the Party com-mittee theoretical study center group.Earnestly carry out the “Remain True to Our OriginalAspiration and Keep Our Mission Firmly in Mind” ed-ucation theme.

The Company upholds the Party’s leadership andfully leverages the Party’s guiding role in making de-cisions, managing general situations, and facilitatingimplementation.The Company makes the Party Committee’s discus-sion a prepositive procedure for the major decisionsto be made by the Board or management.In 2019, 22 Party Committee’s meetings were held,reviewing 111 issues.

Upholding the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Party construc-tion proceeded together with the enterprise at the same pace.

Party’s leadershipThe CPC Wuliangye Committee steered the Company’s development.

Party’s leadership rolePolitical thought construction

On April 8th, 2019, the inauguration ceremony of SOE Party Construction Research Center and Party School ofCPC Wuliangye Committee was held in the Party Construction Center, which marked the rst of its kind in the Chi-nese liquor industry. CPC Wuliangye Committee has been committed to building the Party School into a think tankthat would lead development, a purier that would improve conduct, and a fuelling station for talent training, givingfull play to Party’s strengths in education and cultivation.

CPC Wuliangye Committee has opened the “Civilized Wuliangye” Party Construction WeChat account, includingan innovative column of “Party Secretary Shuguang’s Party lectures”. The column focuses on major decisions andguiding documents made by the central leadership, and o?ers online Party lectures to Wuliangye’s Party membersand cadres without time or space limitations. In 2019, there were 10 sessions of the “Party Secretary Shuguang’sParty lectures on WeChat”, receiving over 7,000 views and improving the political knowledge of Party membersand cadres.

Establish the Party School of CPC Wuliangye Committee to build a think tank leading the development

Open Party Secretary Shuguang’s Party lectures on WeChat to improve Party members’ quality

Special Training Class on Wuliangye Group’s Party Construction by PartySchool of the Central Committee of CPC (National Academy of Governance)

Wuliangye organized the rst session of Demonstration Train-

ing Class forParty Secretaries of State-owned Enterprises in SichuanWuliangye’s Party Secretary Shuguang’s Party lectures on

WeChat

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Enhance community-level Party constructionStimulate vitality and set an example

The Company has implemented the “Project of Enhanc-ing Community-level Party Construction” to nish the 39key tasks in SOE Party construction with all-out e?orts.The Company has put Party construction on top of itspolitical agenda and incorporated Party construction intothe Articles of Association as required.

The Company revised Guidelines on Standardizationof Community-level Party Organization Construction inWuliangye Group and Yibin Wuliangye, highlighting vecrucial areas of “basic education, basic construction, ba-sic system, basic team, and basic guarantee”.

Continuously advance key tasks in SOE Par-ty construction

Promote the standardization of communi-ty-level Party organization construction

Strengthen personnel guarantee by assigning full-timeor part-time sta? responsible for community-level PartyconstructionStrengthen fund investment by reserving Company’sParty construction funds and appropriating Party con-struction fund and base construction fund to communi-ty-level Party organizations.The Company has enhanced base construction, andbasically set up a Party construction cultural system of“Wuliangye Party Construction Cultural Center + Com-munity-level Party Construction Bases”. Wuliangye Par-ty Construction Cultural Center has been chosen as theParty Construction Survey Base of SASAC (State-ownedAssets Supervision and Administration Commission ofthe State Council).

Enhance basic guarantee at community level

CPC Wuliangye Committee has always prioritized Partyconstruction on its political agenda. Centering on the ob-jective of setting “an example in SOE Party construction”,it has thoroughly carried out its primary responsibilities inParty construction when the Party secretary works as therst person responsible, the secretary of Committee forDiscipline Inspection fullls inspection duties, and othermembers of the leading group of the Party Committeeperform “dual responsibilities”.

Fully implement Party construction responsi-bility mechanism

The Company held a “read original works and comprehend the original philosophy” activity to enhance study of political theories.The Company promoted spiritual civilization to encourage employees to become active communicators and practitioners of core so-cialist values.The Company held many themed Party construction activities including “July 1st” activities, “WeChat Party Lecture” competition, andevents celebrating the 70th anniversary of the founding of the People’s Republic of China.The Company organized a series of activities to promote study into the Party constitution and regulations, import-ant speeches, Party and Chinese history, and excellent practices and expertise, to boost competition in daily workon responsibility awareness, contribution, innovation, competence, and ethical values, and to make advancementsin production and operation, reform problem resolution, rules formulation, and self-development so that the themededucation could deliver stronger and more long-lasting impacts on Wuliangye people and transform into practicalresults.

To leverage Party members and teams’ exemplary and inspiring impacts on key development issues as tacklingreform challenges, innovating operation and management, and resolving technological di?culties, CPC WuliangyeCommittee has adopted the idea of “lead development with Party construction” and approved a number of Partymember-led key projects on a regular basis in order to encourage Party members to voluntarily devote to majorand centric projects. In 2019, CPC Wuliangye Committee assessed 158 projects of this kind launched in the past 2years, and selected 10 outstanding projects to demonstrate achievements.

Wuliangye “Study-Competition-Advancement” Series activities

Wuliangye’s Party member-led key project

Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, inspected achievements of Party mem-

ber-led key projects

4546

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Corporate governance

Regulate corporate governance to consolidate foundationsWuliangye has established a standard corporate governance structure where the general meeting of shareholders, Boardof Directors, Supervisory Board, and managers perform functions of authority, decision-making, supervision, and exe-cution respectively, forming an e?ective mechanism of division of labor and counterbalance. The Board of Directors andSupervisory Board report to the general meeting of shareholders, and managers report to the Board of Directors. TheBoard of Directors has established the Strategy Committee, the Remuneration and Appraisal Committee, the NominationCommittee, the Audit Committee, and the Total Budget Management Committee.

Enhance corporate structure

General Meeting Of ShareholdersSupervisory Board

Total Budget Management CommitteeRemuneration and Appraisal Committee

Nomination CommitteeAudit CommitteeStrategy CommitteeBoard of DirectorsManagersO?ce of the Board

Quality Test Center

Strategic Development Department

Information Management Center

Human Resource Department

Quality Management Department

Family Planning and Logistics Service Department

Marketing Department

O?ce of the Supervisory Board

Technology Research Center

Financial Management Department

Wuliangye Sta? Management Center

Assets Management Department

Brand Protection and After-Sales Service Management Department

Investment and Technology Innovation Department

Sales Service Department

Administration O?ce

Material Management Center

Audit Department

Production Management Department

Work Safety Supervision Department

Packaging Material Procurement and Supply Department

Energy and Environmental Protection Management Department

E-commerce Management Department

Party-masses Work Department

Sta? Education and Training Center

Discipline Inspection and Supervision Department

Product Development Department

Security Department

Wuliangye Brand Business Department

International Cooperation Department

Exclusive Store Management Department4546

Sichuan Yibin Wuliangye Winery Co., Ltd.

Liquor production workshop (10)Auxiliary workshop (6)

Wuliang Nongxiang Series Baijiu Yibin Co., Ltd.

Yibin Wuliangye Fantasy Forest Ecological Wine Co., Ltd.

Sichuan Yibin Plastic Packaging Materials Company Limited

Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd.

Sichuan Yibin Wuliangye Environmental Protection Co., Ltd.

Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd.

Wuliangye Dashijie (Beijing) Trading Co., Ltd.

Sichuan Yibin Wuliangye Liquor Sales Co., Ltd.

Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd.

Yibin Wuliang Creart Co., Ltd.

Sichuan Yibin Push Group 3D Co., Ltd.

Yibin Cuipingshan Liquor Co., Ltd.

Yibin Jiangjiu Liquor Co., Ltd.

Wuguchun Jiu Ye Co., Henan, China

Sichuan Yibin Global Group Shenzhou Glass Co., Ltd.

Yibin Changjiangyuan Liquor Co., Ltd.

Yibin Shiji Liquor Co., Ltd.

Sichuan Wuliangye Culture Tourism Development Co., LTD21 marketing regions / 60 marketing bases

Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd.

Yibin Zhenwushan Liquor Co., Ltd.

Handan Yongbufenli Liquor Co., Ltd.

The incumbent Supervisory Board of the Company is the 5th supervisory board comprising 4 supervisors, of which2 are appointed by Yibin State-owned Assets Management Co., Ltd. and the other 2 are employee supervisors.

In 2019, 5 meetings of the Supervisory Board were convened, reviewing 18 proposals.The Supervisory Board supervised directors, managers, and other senior management to perform their du-ties in accordance with law.

According to Company Law and the Articles of Association, the general meeting of shareholders exercises the decision-makingpower over major issues including the Company’s management policy, investment plan, prot distribution plan, and revision ofthe Articles of Association, and the calling and convention of the general meeting of shareholders shall be in line with legal proce-dures.,In 2019, the general meeting of shareholders was convened twice, reviewing 17 proposals.The Articles of Association and Rules of Procedure for Shareholders' Meetings were revised.

Yang Yunxia, Labor Union Chairwoman and Supervisor of Yibin Wuliangye, addressed the 2019 Wuliangye Special Training Class

for Supervisors.

General Meeting Of Shareholders

Board of Directors

The incumbent Board of the Company is the 5th boardcomprising 9 directors, of which 1 is appointed by YibinState-owned Assets Management Co., Ltd. (proposed),5 are inside directors, and 3 are independent directors.The Board of Directors has established the StrategyCommittee, the Remuneration and Appraisal Commit-tee, the Nomination Committee, the Audit Committee,and the Total Budget Management Committee.In 2019, 17 Board meetings were convened,reviewing 39 proposals.

The 60th session of the 5th Board

of Directors

Supervisory Board

4950

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

The Company has strictly followed regulations including Information Disclosure Management Rules to disclose informa-tion on the Company’s major issues and production and management in a timely, authentic, accurate, and comprehen-sive manner. In 2019, the Company complied and disclosed 83 periodic and provisional reports timely according to relat-ed regulations.

To improve the investor relations management system, the Company has formulated Guidelines on Investor Relationsand Communication to better build the team in this regard, and has realized good communication with domestic and in-ternational investors and enhanced their condence in and recognition of the Company’s future.

Join hands with investors to share enterprise valueStandardize information disclosure

Actively communicate with investors

Over 50 face-to-face meetings covering 1,600 people including 15 meetings on securities traders’ investment strategy

More than 2,500 conversations on the phone.

237 replies to investors’ questions on irm.cninfo.com.cn/.

Three tasting conferences of the 8th-generation classic Wuliangye in Beijing, Shanghai, and Shenzhen, which attract-

ed over 400 attendees.

Investor Protection Campaign in May 2019

Field visits by institutional investors

In 2019, the Company held tasting conferences of the 8th-generation classic Wuliangye in Beijing, Shanghai, and Shenzhen.

Wuliangye Investor Communication Confer-

ence 2019

Highlight the importance of delivering returns to shareholders and keep sharing development benefits with investors.From being listed in 1998 to 2019, the Company has distributed cash dividends of large amounts to investors.

Prot Distribution Plan 2019Based on the current total share equity, the Company planned to deliver all shareholders a dividend of RMB 22 (tax in-cluded) per 10 shares, totaling RMB 8.54 billion (tax included) of cash dividends.

Emphasize investor return

Total amount of cash divi-dends

Accumulated amount of cash divi-dends(excluding 2019 prot distribution plan)

Total amount of funds raised17310.4338.158.14

TimesRMB 100 millionRMB 100

million

Times

Create value for shareholders

In 2019, Wuliangye’s stock price reached a record high and maintained the price above RMB 100. As of December 31th,2019, the Company’s closing price stood at RMB 133.01, and its market capitalization reached RMB 516.293 billion,ranking rst in all companies listed in the Shenzhen Stock Exchange and all Sichuan-based listed companies.

The Company facilitated the construction of “1+3” ABC control system to fulll ABC responsibilities and pro-mote sound development of the Company.

Integrity constructionUphold integrity and perform anti-bribery and corruption (ABC) dutiesPromote construction of ABC risk control system

ABC system creates a new environment

The team of discipline inspection and supervisiongenerates a new driveImplement 15 ABC systemsRevise 20 ABC mechanisms and explore new mecha-nisms like separation of investigation and trial, and “regulartraining in rotation” of community-level inspectors and su-pervisors.

Enhance discipline inspection and supervision by bring-ing in external personnel and training internal personnel,building a team of over 160 full-time or part-time inspec-tors and administrative supervisors.Organize “WeChat Discipline Lectures”, offering themedtraining sessions to over 280 persons.Arrange special o?ces and professional facilities for disci-pline inspection and supervision.

Create an honest and fair business environment to raise production and management e?ciency. In 2019, no violation ofdiscipline was found in senior management. The Company has established an o?cial anonymous reporting systems andacceptance platforms to ensure smooth complaints and violation reporting, such as hotline, reporting mailbox, on-sitereception, and emails. The Company’s ABC culture was awarded the “Grand Prize of 2018-2019 Annual National Corpo-rate Cultural Achievements”.

Keep implementing ABC practices

Communication and trainingbecome the New Normal

Stringent implementation of disci-plines creates a new environment

“Three central rectification proj-ects” promote a new trendPerform central rectification towardsproblems that Party members and cad-res and employees on key positionsuse Wuliangye products for their ownsake.Perform central rectification on prob-lems of formalism and bureaucracy.Perform central rectification on “accu-mulation of wealth by gambling”.

Clarify responsibilities and promoteABC-oriented practices among man-agementHold 6 ABC-themed lectures with over4,000 people participating in videoviewing or on-site education.Distribute over 5,000 copies of Casesof Anti-bribery and Corruption in State-owned Enterprises and Records ofConfession I, and send over 6,000short messages on ABC.

The Company has signed Letter of Re-sponsibility on Self-discipline and CleanPractices with employees, and estab-lished 1,186 copies of Integrity Recordsand Self-check Form.Optimize online monitoring system ofYibin SOE discipline inspection and su-pervision.Investigate 60 tips of violation and im-pose administrative punishments on 26people.

Enhance internal audit to increase management e?ciency

Audit

Set an example in enterprise internal audit

Internal audit organization and infrastructure constructionThe Audit Department independently implementsinternal audit.Issue opinions on enhancing and improving internalaudit, including setting up ve new internal auditingsystems.Perform special, financial, profit, and performanceaudits and provide rectication opinions.Internal audits on project investment and procure-ment saved RMB 212 million in total.

The article Harmonious Wuliangye and Brilliant Internal Auditors was published on Internal Auditing in China (Issue6 in 2019, Vol. 240), which is a national academic journal of China Institute of Internal Audit.Sichuan Provincial Audit Department recognized Wuliangye’s practices and experience in internal audit in its No.18Work News, 2019.The Company was honored the title of “Exemplary Group of Internal Audit in Yibin”, and 2 internal auditors wererated as outstanding individuals.

Empower audit by technology and implement con-nected auditTrain auditors by practical work instead of training,and over 30 auditors acquired professional certica-tions.Organize diversied study activities to enhance in-ternal audit, such as “internal audit lectures”.Implement the practice of dispatching internal audi-tors to oversee subsidiaries.

Internal ControlImprove internal audit to consolidate the Company’s foundationIn line with laws and regulations including Basic Internal Control Norms for Enterprises and its guidelines, and ShenzhenStock Exchange (SZSE)’s Guidelines for the Standard Operation of Listed Companies, the Company has establishedand improved the internal control and risk management system centering on risk features in liquor industry.

Wei Hongying, Secretary of Committee for Discipline Inspection, led middle management to visit Yibin Anti-Corruption Educational Cen-

ter and repeated CPC admission oath.

Liudingxing - one of Wuliangye’s eight ancient liquorproduction workshops, is located on Zhengbei Street inthe old downtown of Yibin,covering an area of 655 m?,and boasting 21 cellars from the Ming and Qing dynas-ties.

Chapter FourStaff Support and Cus-tomer Satisfaction

Caring for employeesService for customersDealer’s supportCooperation with suppliers

Generations of Wuliangye people pass down the legacies of production and drive innovation through this inheritance. Upholding theprinciples of “seeing, smelling, tasting, and touching”, Wuliangye people has been committed to preserve and carry forward valuable tra-ditions via teaching in words and practices and the “1+N” model, and spent their whole life on craftsmanship, excellent technologies, andintegrity.

Caring for employeesLegitimate employment and establishment of the family of WuliangyeImport intellectual support

Inheritance of Wuliangye’s craftsmanship

Implement “Thousand-Hundred-Ten Talent Program”Employment of fresh graduates

Experts at national levelExperts at provincial levelSkilled sta?

On-board training of 2019 graduates

Li Shuguang, Chairman of Wuliangye Group and PartySecretary of Yibin Wuliangye, served as the head of thegroup.The Company has implemented a number of incentiveslike house purchasing allowance and position incentives.In 2019, the Company introduced one internationally-re-nowned avor chemist in a exible manner, who is regard-ed as a “Thousand-level” talent.

Employ talents graduated from University of Birmingham,University of Warwick, Xi'an Jiaotong University, SichuanUniversity, Chongqing University, University of ElectronicScience and Technology of China, Southwestern Universityof Finance and Economics and Jiangnan University, etc.In 2019, the Company employed 71 fresh graduates.

23 experts with special allow-ance by the State Council5 China Liquor Production Mas-ters3 China Baijiu Masters2 China Baijiu Process Masters4 China Liquor Reviewers6 China Chief Liquor Tasters20 Baijiu reviewers at nationallevel6 National Technical Experts

1 expert in Sichuan “ThousandTalents” program2 Sichuan academic and tech-nological leaders10 Sichuan experts with out-standing achievements4 Sichuan Liquor ProductionMasters25 Sichuan Baijiu Reviewers8 Sichuan Excellent Technicians

970 people with advanced pro-fessional certification and se-nior-level skills1,913 people with medium pro-fessional certication and medi-um-level skills4,962 people with elementaryprofessional certification andjunior-level skills

Wuliangye has employed sta? in line with laws and regulations. By promoting equal employment, it has created nu-merous jobs, contributing to social stability.

Creation of jobs

7,066 female employ-ees, accounting for 27%19,282 male employees,accounting for 73%

Below 30 years old4,21116%persons,accountingfor

30 - 50 years old19,27173%persons,accountingfor

11%Above 50 years old2,866

persons,accountingfor

Senior highschool to juniorcollege

Postgraduateand above16,876239PersonPerson

Undergrad-

uate2,369Person

Number of penalties received for violations of laws and regulations on employ-

ment and labor

Zero100%3,562 persons

Zero

Zero100%RMB 14.02 million

Signing rate of labor contractsCompliance and basic rights

Number of employees covered by collective negotiation agreement (congress of

workers and sta?)Number of work-related casualtiesMorbidity of occupational diseaseCoverage of physical examinationExpenditures on physical examinations

Indicators2019Type

Gender composition

Age structure

Educational background

5758

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

The Company has kept improving employees’ wages and welfares, creating a better working environment andprotecting their rights.Enhance welfare of employees

“Wuliangye Family”, the labor union’s digital platform, wasawarded as “the most inuential platform”.Wuliangye Employee’s Family

Employee’s compensation has increased with the Company’sgrowth with a signicant rise in YoY annual per capita income.The Company has paid the premiums of endowment insur-ance, medical insurance, unemployment insurance, supple-mentary medical insurance, work-related injury insurance,and maternity insurance, and the housing provident funds atthe highest level of corporate proportion.The Company has adopted the enterprise annuity systemacross the enterprise.The work meal allowance has been raised by 80%.Welfares have been provided in terms of work meal allow-ance, gift cards, high temperature allowance, birthday giftcard, and holiday gifts.

The Company has invested RMB 140 million to renovateworkshop tool houses, locker rooms, toilets, and employee’sliving quarters and support facilities.The Company has upgraded the 1,000-square meters“Wuliangye Employee’s Family” and realized integrated on-line and o?ine services by the labor union.The Company has upgraded “Wuliangye Family”, the laborunion’s digital platform.

Employee’s compensation and welfareEmployee’s working environment

Wuliangye has created a fair environment for females in regard of employment and promotion to facilitate family harmo-ny, social stability, and civilization progress. The Company has held the working conference of All Female Employees’Committee, vocational skills competition for female employees, fun games, and a series of activities celebrating the Inter-national Women’s Day.

Support female’s development

Flower arrangement training themed “Pur-sue Dreams Together in Flower Blossom”

The Company held 2019 annual tasting competition of liquor production workshops.Lectures on family education andpsychological health

Highlight training to support employee development

Development of diversied training models

Accumulated hours of training1,229,106

Hours

Expenditure on training1,166.19

RMB '0,000Accumulated number of peo-ple receiving the training36,253

Person

The Company has developed the online education platform and upgraded data bases to meet employees’ need for mobilework and online study.The Company has developed digital training classes for new employees to cultivate talents for digital transformation.

Enhance employee’s value

Launched on July 26th, the 1-month training invitedrenowned domestic Baijiu experts, Baijiu reviewers atnational level, and professional lecturers to train 1,447people on an array of aspects including raw materials,production of distiller’s yeast, liquor production tech-niques, liquor body design, liquor assessment, as well asliquor inspection and standards, in order to enhance em-ployees’ theoretical and practical competence.

2019 annual training and assessment forliquor taster and producer

On October 24th, the Company’s labor union organizedthe tasting competition with the support of the ProductionManagement Department and Workshop 506, attracting180 competitors. This competition aimed to enhanceliquor production technicians’ accurate control over un-blended liquor, align their sensory understanding to thesame standards, and improve their skills in tasting andevaluation.

2019 annual tasting and assessment skillscompetition of liquor production workshops

Wuliangye Labor Union and Yibin Municipal Labor Union jointly held the 3rd Yibin Municipal Tasting Competition topromote and carry forward the spirits of model workers and craftsmanship and strengthen the skill set of workerson the production line by means of competition and practices instead of training or learning, creating favorableconditions for technicians to develop.

The third Yibin Municipal Skills Competition on “Vinasse-based Ingredient Making and Tasting”

Inspire employees

The rst “Wuliangye Craftsmen” campaign selected 5 “Wuliangye Craftsmen”, 5 “Liquor Production Craftsmen”, and 1 “Distiller'sYeast Production Craftsman”.The May Day Awards event honored 2 medalists of Sichuan May Day Medal, 2 of Yibin Municipal May Day Medal, and 11 “WuliangyeCraftsmen”.

Organize diversied activities for employeesEnrich employees’ spiritual life

In 2019, the Company held 10 “Cultural Weekend” shows, which provided a platform for employees to show their talentsand attracted audiences of 4,000, and also 20 cultural and sports events.

“Wuliangye’s Evening”

Training of aerobatic dancingThe Company held the May Day Awards event to let workers showcase their skills and talents.Winter swimming

Employees’ weekend art showThe Company co-organized the thirdSichuan & Tibet-based ListedCompany “Healthy Jogging”

Cultural and sports events

Establish support system for employees in need

Focus on needs of employees

The Company formulated and implemented the Management Rules on Internal Retirement of Severely-ill Employees (Trail)and revised the charter of mutual-assistance and poverty alleviation fund to develop a support mechanism integrating as-sistance provided in both regular and sudden cases.

Li Shuguang, Chairman of Wuliangye Group and Party Secre-

tary of Yibin Wuliangye,sent greetings and allowances to front-line workers.

Zeng Congqin, Chairman of Yibin Wuliangye,sent greetings and allowances to workers on the production

line.

The Company’s labor dispute arbitration committee, labor union’s company information disclosure group, andthe leading group of employee complaints have played an active role in identifying andsatisfying the reasonable needs of employees.The labor union has placed great emphasis on employees’ reasonable needs, and it receives employees ev-ery Monday, Wednesday, and Friday. In 2019, it received 94 appeals from employees.In 2019, the Company dealt with 26 petition cases in a proper way, down by 19 cases compared with 2018.

There were 59 workers who left their positions to recover their health.The Company visited employees with nancial di?culties or in hospi-tal during the Spring Festival and gave allowances to them.The Company sent greetings and allowances to employees whocontinued to work during the Spring Festival.The Company showed care to children of employees on Children’sDay on June 1st.The Company sent greetings and condolences payments to over 40employees who su?ered from the earthquake in Changning on June17th.The Company o?ered student grants to children of employees withnancial di?culties.

The Company has granted over RMB 6.3 million in nancial aid ofall kinds.The Company has assisted over 1,100 employees in need.The Company has assisted over 106 registered impoverished em-ployees.The Company has assisted 25 registered impoverished employeesat national level and 3 at provincial level to get out of poverty.

Service for customers

Reform marketing to explore market terminalsCreate platform-type marketing organizations

Reform of platform-type marketing organizations

Horizontal profes-sionalization atheadquarters

Platform modelsharing e?-ciency

Establishmentof market-orient-ed employmentmechanism

Verticaldelayering inregional orga-nizations

Operation mod-el of businessunit

The Company was awarded “Best Experience Marketing Company” of Dingge Award in 2019 ChinaEnterprise Digital Transformation, co-sponsored by Tsinghua University IGI (Institute for Global Indus-try), Harvard Business Review, and SAP (China).

On February 18th, 2019, the Company held a marketing reform working meeting to launch the market-driven reform ofplatform-type marketing organizations. Wuliangye Brand planned to set up 21 marketing regions and 60 marketing basesnationwide and to consolidate the former 3 companies of liquor series and Yibin Wuliangye Xianlin Ecological Liquor Co.,Ltd. to optimize resource allocation. This round of marketing reform would bring the Company closer to markets, termi-nals, and consumers and facilitate in-depth market exploration and e?cient services.

Core marketingregions

Marketing Region Map- 21 marketing regions, with 8 at the core

MR TianjinMR ChongqingMR LiaoningMR ShaanxiMR Shanxi and HebeiMR ShandongMR Hubei and JiangxiMR FujianMR HunanMR Xinjiang, Qinghai, and TibetMR Guangxi, Guizhou, and YunnanMR Gansu, Ningxia, and Western Inner MongoliaMR Heilongjiang, Jilin, and Eastern Inner Mongolia

MR BeijingMR SichuanMR ShanghaiMR AnhuiMR ZhejiangMR JiangsuMR HenanMR Guangdong

Since 2017, the Company has started its digitalization by cooperation with IBM, an expert in digital transformation, andSAP, the largest management software company in the world. It has implemented the Digital Transformation Blueprint tocarry out “1-365” digitalization centering on a second startup, quality, and experience. It has made all-out e?orts to drivedigital empowerment vertically and horizontally to increase the enterprise’s core management competence in digitalizeddecision-making, management, and operation, driving the company towards the world-class group. In 2019, the Compa-ny advanced the upgrading of Wuliangye’s exclusive stores and the construction of Wuliangye’s core terminal system,and completed the integration of the product supply chain to international and domestic major supermarkets, developinginto a digitalized terminal marketing.

The Company has rigorously abided by commercial credit and implemented honest marketing campaigns by taking prac-tical measures to ensure true advertising, and consumers’ rights to be informed with true and accurate information.

Accelerate marketing digitalization

Organize honest marketing campaigns

Project of “One HundredCities-One Thousand Coun-ties-Ten Thousand Stores”

Brand structureChannel structureTeam structure

Digital supply chainOmni-channel internetmarketingBig data-driven marketingdecision-making

Digital market-

ing model

One project

3 structures3 platforms

Honest operation to protect consumer’s benets and rights

Legal personnelMarketing personnelDealersContract management and legalityreview on articles in contracts.Legal consulting to marketing de-partments.

Training on key marketing tasks forthe whole year.Strict requirement for marketingpersonnel to follow the Company’spolicies.Strict requirement for marketingpersonnel to carry out true advertis-ing.Emphasis on marketing personnel’slearning and use of law.

Training on Wuliangye’s brand andcorporate culture.Training on improving services toretail customers.Training on enhancing the capacityto acquire and maintain corporatebuyers.

Protect consumer’s privacy and personal information

Increase consumer’s satisfaction on after-sales services

Develop into a market-recognized honest enterprise

The Company supported the “Kunlun Action” launched by the Ministry of Public Security on a national scale andthe exhibition of achievements in the joint rectication campaign against food safety problems, identifying productsfor consumers and promoting Wuliangye’s IP.Support “Kunlun Action” on food safety

The Company has set up a club for Wuliangye consumers, where personal information and privacy are under strict protection.The collection and use of information are limited within the necessary scope required by Wuliangye’s services.The Company explains to consumers on how it collects, uses, stores, and shares personal information.According to legal requirements and proven security standards in the industry, the Company has adopted encryption technologies toensure data security.

Excellent Company in 2018 Annual Legal Publicity and Education.Excellent Company in the Middle Phase of the 7th Five-year Plan of Legal Publicity in Sichuan.Sichuan Credit and Law-abiding Demonstration Enterprise, National Credit Enterprise Abiding by Contract, Sichuan Credit Enter-prise Abiding by Contract.China Top 10 After-Sales Service Providers awarded by China General Chamber of Commerce.2018 Sichuan Credit Demonstration Enterprise.

The Company has opened up more channels to deal with consumer complaints, answer questions, and collect information on fakeproducts and infringement.The Company has endeavored to provide quality after-sales services to consumers. In 2019, it received 1,394 after-sales calls, all ofwhich were dealt with immediately.In the Sichuan Association for Quality’s third-party evaluation on customer satisfaction rate of after-sales services, Wuliangye gaineda high score of 94.62.

Apply technologies to improve customer servicesDevelop product with intelligent traceable package

Assist consumers in identifying authorized exclusive stores

The project was rolled out in July 2019, making Wuliangye the

rst brand in China to launch a recognition project with Amap. It

has provided consumers with convenient, fast, and correct access

to authorized exclusive stores co-recognized by Wuliangye and

Amap (with V mark or chain store mark). Amap has di?ered au-

thorized stores from the unauthorized to better protect consumers’

rights and benets.

Intelligent retail to enhance consumer experience

The Company has promoted consumer-centric intelligent retail by opening more o?ine exclusive stores and online o?cial e-com-

merce platforms to get closer to consumers.

The online platform wlyweixin.com has organized Wuliangye Liquor Carnival, meeting consumers’ needs by supplying many prod-

ucts rarely seen elsewhere.

The Company has organized activities including auctions of highly valuable products, ash sales, group buying, and lotteries to

bring more benets to consumers.

Alibaba LST

Exclusivestore

JD.com

YH Super-marketPinduoduo

One unique code per bottleAdded value service for company members

To adapt to interactive consumption habits in the digi-

tal age, the Company has introduced the QR code to

the bottle of the 8th-generation classic Wuliangye for

traceability, which allows every consumer to tell the

genuine from the fake and drink with peace of mind.

Consumers could easily gain Wuliangye’s member-ship by scanning the code, acquiring member points,and enjoying the exclusive value-added member ser-vices.

Wuliangye and Amap co-recognized project

Dealer’s supportSeek development together with partnersHonest cooperationWuliangye has set up strict dealer admittance criteria and policies, requiring dealers to operate in a compliant and honestway. The Company has treated all dealers in an equal manner, and exchanged in-depth ideas with dealers to build com-mon ground.In 2019, the Company established partnerships with 61 overseas dealers.The Company convened national meetings including dealer exchange meetings and brand strat-egy presentations.The Company invited dealers to attend various international liquor exhibitions, expos, and eldvisits.The Company o?ered training for dealers and developed supportive policy.The Company and dealers reached a consensus on fullling corporate social responsibilities.

The company actively facilitated dealers to participate in events like the annual conference of China Alcoholic DrinksAssociation, International Wine & Spirits Alliance Summit, Liquor Sage Ceremony, and appreciation activities. In ad-dition, it has selected star-level dealers to appreciate their efforts and share Wuliangye’s development and reformachievements.

The 23rd Wuliangye 1218 Annual Convention on Achieving Shared Growth Through Discussion and CollaborationShare achievements

The Company had in-depth dialogues with dealers in an honest way to boost cooperation with modern and specializedchannels, to empower series liquor’s dealers, to invest more into brand promotion in a targeted manner, and to raisedealers’ protability on the whole. The Company has supported dealers with leveled measures and special policies.“Aggregation and Win-Win” Wuliangye Liquor Series Dealer Communication Meeting

On July 20th, 2019, the General Manager of Gan-su Zhongxin Liquor Co., Ltd. led a delegation to visitWuliangye despite the long distance, and held the “DonateMelons in Summer to Show Appreciation for Wuliangye”activity to show their heartfelt gratitude to Wuliangye’scraftsman. They brought 26,500 kg Gansu-producedBailan Melon to 505 and 513 workshops, expressing theirappreciation towards the big family of Wuliangye.

Dealers donated melons to Wuliangye’s craftsmen in summerWin dealers’ trust

In recent years, guided by the spirit of “second startup”, Wuliangye has overcome nu-merous obstacles to enhance marketing reform, creating a good environment for the jointconsultation and development between Wuliangye and dealers. This visit aims to not onlyexpress our thanks for the dedication of Wuliangye people, but also show our con?denceto ful?ll the marketing goals and resolution to develop together with Wuliangye side byside.

-Zhang Zhengjun, General Manager of Gansu Zhongxin Liquor Co., Ltd.

Zou Tao, Executive Deputy General Manager of Yibin Wuliangye, attended the

Wuliangye Liquor Series Dealer Communication Meeting

Cooperation with suppliersTraceability-based procurement and promotion of honest cooperationWuliangye has optimized supplier structure to build a quality supply security system, and maintained coop-eration with raw material suppliers of liquor grains in an honest and friendly manner without comprising theirinterests.The Company has strictly followed supplier admittancecriteria.The Company has introduced 20 large wholly state-ownedstrategic partners.The Company has adopted the “traceability-based biddingmodel” to ensure the quality of unprocessed grains.

Supplier managementBid-winning andplanned transportationnotice

Comprehensive assessment

①Quality of raw material② Supply status③Supply capacity④ Cooperation status

Incentive system①Survival of the ttest②Incubation andsupport③Supplier maintenance④Leveled anddynamicadjustment of suppliersQuality improve-mentQuality monitoring

The top 5 suppliers accounted for 37.9% of total procure-ment.The procurement from a single supplier was less than10%.No dependence on single supplier

The Company issued and implemented the Rules on Daily Management of Raw Material Suppliers (Provisional) and ManagementRules on Review and Assessment of Raw Material Suppliers (Provisional)

PlanProcure-

ment

Transpor-tation

Inspection

Return ofgoodsPassInspection

Qualied

Abandon

Storage and use

Qualied supplier

Admittance approvalSupplier assessment

Fail

New supplier application

Settlement

In January 2019, the Company held the rst Dealer Conference and Awards Ceremony.Strict requirement on packages and implementation of fair mechanismIn 2019, the Company revised Management Regulation on Packaging Materials, and implemented it strictly throughoutthe whole supply chain from selection of qualied supplier to the annual assessment of the price, production, and trans-portation of packaging materials.There were 74 qualied suppliers that passed the review andassessment to ensure no dependence on a single supplier.The Company compiled the List of Suppliers.The Company has improved packaging material’s procure-ment competition system.The Company strictly determined the executing price for ma-terials of the same kind.

The Company has established a good partnership withsuppliers.The Company enhanced management over the fund sur-plus plan, and nished settlement without delay.There were zero quality or food safety accidents causedby packaging materials.

Qualied sup-plier manage-

ment

Material qualityinspection

Productionplan imple-mentation

Material pricemanagementBid manage-ment

SettlementmanagementAnnual reviewand assess-ment

Under the guidance of Wuliangye’s philosophy of “adhere to high-quality developmentand create a brighter future”, we would spare no e?orts to supply the best grain. Mean-while, we will invest more funds to facilitate modern supply chain comprising large-scalewarehousing, logistics, and production to create a brighter future.

Appreciation letter from CR Ng Fung Marketing Co., Ltd.

Zhongsanhe - one of Wuliangye’s eight ancient liquor pro-duction workshops,is located on Donghao Street in the old downtown of Yibin,covering an area of 485 m?,and boasting 18 cellars from the Ming and Qing dynasties.

Chapter FiveSustainability and Envi-ronment-friendliness

Energy conservation andenvironmental protectionCompliant emissionEco industrial parkGreen base

Energy conservation and environmentalprotectionHighlight environmental protection and improve organi-zation and management systems

Improve production and reduce energy consumption

Wuliangye has established a sound organization structure to manage energy conservation and environmental produc-tion, formulated the Medium and Long-term (2017-2021) Environmental Protection and Ecological Construction Plan ofWuliangye Yibin Co. Ltd., implemented a series of regulations including Energy Management Regulation, AssessmentRegulation on Energy Management Performance, Environmental Protection Management Regulation and EnvironmentalProtection Accountability Regulation, and has obtained and maintained ISO 50001 Energy Management Systems certi-cation and ISO 14001 Environmental Management Systems certication.

Promote green production

Wuliangye’s energy and environ-

mental protection managementorganization chart

Green energyGreen technology

The Company has implemented the project of “replacingcoal with natural gas”, and switched to alternative cleanenergy.The Company has passed the clean production assess-ment, and was rated at the national level-2 (advanced).Green energy accounted for 93.6% of total energy con-sumption.Renewable energy accounted for around 3% of total en-ergy consumption.

The Company made breakthroughs in processes andproduction technologies, realizing low consumption andhigh e?ciency in complex vinasse production. It has ad-opted the technology which uses vinasse as raw materialand produce complex vinasse in the 2,000-cubic-meterscellar.The Company organized the “Golden Idea” campaign tocollect good practices in energy conservation and emis-sion reduction, of which the Water Station Clean WaterPool Liquid Level Control Project proposed by 510 Work-shop saved 385,500 kwh of electricity and reduced CO2emissions by 302.64 tons.

Energy and Environmental Pro-tection Management Department

Leading Group of Energy Con-

servation

Environmental ManagementCommittee

Wuliangye Group (Yibin) Co. Ltd.

Overall coordinationEnvironmental pro-tection managementOverall coordinationManagement ofenergy conservationand consumptionreduction

Supply of water,electricity, andgas

Professional treat-mentGas, liquid, andsolid wastes

The Company has built the liquor green design platform of pure grain production and solid fermentation by carryingout green design, management, and assessment technology research on liquor’s life cycle characterized by pure grainproduction and solid fermentation. The platform has integrated digitalized packaging and green product design, productlife cycle environmental impact evaluation tools, and a data base of life cycle green design. After being implemented,the project helped Wuliangye to raise the green technology transformation rate by 33.26%, production’s green rate by

24.92%, and reduce production’s impact on environment by 20.33%.

Implement green design

The Company nished the rst and second phases of the project of “replacing coal with natural gas” and built natural gas boilers. The Companyintroduced advanced low nitrogen combustion technology from Saacke and Weishaupt in Germany.The Company nished the construction of 15 units of 20t/h horizontal condensing natural gas boilers and put them into operation.

The Company shut down all vinasse drying ovens and environmentally-friendly boilers.

The Company reduced its comprehensive energy consumption by 3.3% compared with that of 2018.

Systematic consideration at the product design and R&D stage

The Company shut down all coal-burning boilers.

September 2013 - May 2019

2018 May

2019 July

2019 December

2018 May

Liquor green design platform of pure grain production and solid fermentation

Selection and useof raw materials

ProcessingSales

Production

Impacts onEnvironmentand Resourc-

esRecyclingUse

Powerhouse

Othersub-sidiar-ies

Func-tiondepart-ments

Yibin Wuliangye Environmen

tal Protection Industry Co.,

Ltd.Liquor production and others

Auxiliary workshops

The Company sees liquor’s packaging materials as a strategic element in ensuring environmental safety and protection,which has been listed as an important criterion in supplier admittance. Supplier of packaging materials shall produce bot-tles stringently in line with the Company’s quality requirements, and each package shall have product quality documents(certicates). Product shall be pre-inspected before delivery, and pass the inspection after being delivered to the Compa-ny to ensure materials meet all safety and environmental requirements.

Strict requirements on green packaging

Promote low-carbon o?ceThe Company organized publicity activities on energy conservation and environmental protection to raiseawareness of saving energy and reducing emission.The Company leveraged information tools to advocate paperless o?ces, remote video meetings, and on-line training.The Company provided free shuttle buses for employees.The Company encouraged employees to take public transport and reduce use of private cars.The Company set up the assets management system to e?ciently recycle old o?ce supplies and unusedmaterials.The Company arranged special departments and personnel to collect and treat hazardous articles like ton-er cartridges.

Promote water conservation technology

Ensure water quality safetyPromote recycling and adopt water conservation technology

Wuliangye has dug over 90 meters under the Minjiang River’s main course and takes water from ancient river channelsthrough a 400-meter tunnel, which is rich in mineral substances and originates from the source of the Yangtze River. Withsu?cient supply of water, Wuliangye has always made e?orts to keep it safe.

The Company promoted the water resource recycling project, with recycled water consumption accounting for 613.05%of total water consumption in 2019.

The Company invited experts from Yibin Monitoring and Law Enforcement Team on Environmental Issues to o?er a special lec-ture, and directors and senior managers led by example to learn the law. Li Shuguang, Chairman of Wuliangye Group and PartySecretary of Yibin Wuliangye, emphasized that as a leading enterprise in high-end food sector and liquor segment, Wuliangyemust lead by example. All managers and employees of the Company shall reinforce the learning of the Law of the People’s Re-public of China on Prevention and Control of Water Pollution and other related laws and regulations to increase the overall un-derstanding of water pollution control. Meanwhile, the Company shall establish a long-lasting mechanism to earnestly implementvarious requirements in daily work.

A special lecture for learning of the Law of the People’s Republic of China on Preventionand Control of Water Pollution

Bottle-washingwater of packagingworkshops

Condensed wateron retort covers ofliquor productionworkshops

Recycled water inpublic works

Trace product water

consumption

Improve processesto save water

The Company’s liquorpackaging materials are100% safe without caus-ing any environmentalpollution, which could berecycled by a third party orcollected by consumers.

Tags on bottles use one-time di-rect printing technology.

Metal bottle cap and plas-tic bottle capGlass bottles and porcelain bot-tles

7778

Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Compliant emissionCompliant emission to eliminate wastes and pollutionAct in accordance with laws and regulations

Control waste discharge

Obtain the pollutant discharge permit according to lawPay the environmental protection tax according to lawApplication date: 2016.4.21Expiration date: 2020.12.31Issuing authority: Yibin Environmental Protec-tion Bureau

2018 tax payment: RMB 1,347,8372019 tax payment: RMB 1,987,820

The Company adopted various measures to facilitate sound operation of waste treatment to reduce emission of pollut-ants. After fully replacing coal with natural gas, the Company is able to reduce SO2 emission by 2,150 tons, NOx by 821tons, and smoke and dust by 1,723 tons.

Liquid wasteCentralized sewagetreatment systemThe Company used de-hydrated sludge to pro-duce organic fertilizers.

Gas waste

The Company optimizedtechnologies and equip-ment to reduce exhaustemission.The Company wouldnot emit gas waste untilit met standards aftertreatment.

General solid wasteThe Company usedspent grains to producecomplex-vinasse liquorand livestock to be sold.The Company sold 270-ton solid waste recycled.

Hazardous substance

The Company entrust-ed qualified companiesto transfer hazardouswastes.The Company trans-ferred 108.7 tons of haz-ardous wastes in total.

Enhance monitoring and information transparency

Enhance waste discharge monitoring

Disclosure of information

Realize environmental targets

Liquid wasteNoiseGas wastePM2.5, SO2, and NOx in the air

4,560 gures and 430 reports issued114 items/times and 12 reports issued

42 reports issued4 reports issued

The Company entrusted third par-ties to monitor liquid and gas wasteand noise in both parks and pro-duction workshops of Wuliangye.All monitoring results met relatedstandards.

Minor environmentalpollution accident

Internal monitoring

Moderate environmentalpollution accident

Major environmentalpollution accident

Third-party monitoring

Severe environmen-tal pollution accident

The Company has strictly followed national, Sichuan, and Yibin standards and implemented the stricter environmentalprotection system of the Company. It organized the 2019 Emergency Drill on Environmental Emergency, and fullled en-vironmental safety tasks.

Automatic Monitoring and Scheduling System for Disclos-

ing Pollution Source DataInformation Disclosure Platform for Key Monitored Enter-

prises’ Self-monitoringSichuan Pollution Source Monitoring Information Manage-

ment and Sharing PlatformMonthly Environmental Reports on the Company’s o?cial website

The Company would actively monitor and disclose related

information every month.

Information on emissionConstruction and operation of pollution control facilitiesConstruction projects’ environmental impact evaluation and other environmental protection adminis-trative permitsEnvironmental emergency plan and annual self-monitoring plan

72,862 environmental updates

Disclosure channelsInformation disclosed

The Company kept its emission under the total control limit set by Yibin Bureau of Ecologyand Environment

Compliance rate of liquidwaste discharge

Compliance rate ofgas waste discharge

Compliance rate ofsolid waste treatment100100100%%%

Eco industrial parkGreen projects to build a beautiful environmentLaunch green systemWuliangye implements the concept of green development and starts the construction of Wuliangyegreen development system

Wuliangyepark

Liquor pro-duction

Characteris-

tic ecology

Greeniza-

tion

Globaliza-tion

Industrialtourism

Culturalexperience

Energy conserva-tion and consump-tion reduction

Pollution con-trol

Green product

Green factory

GreenProtectedEco-originProduct byChinaGreen pro-duction

Green system

Construction of ecological projectThe Company has strived to protect the upper reaches of the Yangtze River, the production water source, to develop anecological park and reinforce treatment and control over pollution sources to protect the unique ecological environment.Songgong River (Wuliangye reach) Comprehensive Treatment Project

Renovation and upgrade of the pipe network in Jiangbei park

In June 2018, the ecological wetland was built, enabling ecological water supplement to Songgong River’s reaches.The Company removed the river sludge and salvaged oating waste, dramatically improving the water quality ofSonggong River.

The Company improved the separation of clean and polluted water on the Jiangbei campus to ensure all pollutedwater could be collected.

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Wuliangye Yibin Co., Ltd.Corporate Social Responsibility Report 2019

Participation in green public benet activities

Build exemplary green enterprise

The Company is a?liated to many environmental protection associations in China, fullling its responsibili-ties in this regard for the benet of the public.

Demonstration Project Award of 2018 Sichuan Environmental Brands

Chinese Society for EnvironmentalSciencesChina Ecological and EnvironmentalProtection Facilitation AllianceSichuan Environmental Science Soci-ety

Sichuan Environment MagazineSichuan Environmental Investment Utili-zation AssociationYibin Society for Environmental Sciences

Sichuan Industrial Tourism Demonstration BaseSichuan Environmental Credit Enterprise 2018 (the Company has won this award for three consecutive years)The First Group of Sichuan Industrial Resource Comprehensive Utilization Bases (park and enterprise)The Company’s integrated green production system passed the medium inspection of the provincial expert team

In May 2019, the Company organized the 2019 Sichuan Industrial Green Development Summit, making contribu-tions to the environmental industrial transformation and upgrading, and high-quality green development in Sichuan.Wuliangye implement the concept of green development at a higher level and according to stricter standards, fullyplaying SOE’s leading and demonstrating role in the construction of ecological civilization.

Tang Shengyun, Deputy General Manager of Yibin Wuliangye, attended the Sichuan Industrial Green Development Summit

In 2019, Wuliangye upgraded its liquor grain bases into high-quality production areas covering over 66,667 hectares. Bycombining the self-supply of liquor grains and the rural rejuvenation project, it has satised farmer’s needs, assured gov-ernments, and improved the enterprise performance, achieving a win-win result for all parties.

Green base

Upgrade construction to realize traceability management

Build high-quality production areas

In regard of Wuliangye liquor grain production area, Yibin is the center and Sichuan regionserves as the mainstay with some domestic high-quality production regions as the supplement. Two models of “core area demonstration” and “strategic partnership”. Reference to EU GAP (Good Agricultural Practice).The Company has built and upgraded bases across China with a total area of more than 66,667hectares.Map of Wuliangye’s liquor grain bases

Sichuan - 42,000 hectaresAnhui - 6,667 hectaresJiangsu - 1,333 hectaresXinjiang - 3,333 hectaresHenan - 2,000 hectaresInner Mongolia - 13,333hectares

South ChinaSea

The Company introduced the intelligent agricultural system from Sinochem Agriculture and established a MAP technolo-gy service center to pilot digital management and increase plantation management e?ciency.Introduction of intelligent agriculture

The packaged solution covering soil improvement, variety improvement, crop protection, agricultural work,agricultural nance, and intelligent agriculture.It uses satellite remote sensing to monitor and identify land areas by surveying and mapping and generatesmulti-level digital view of the land by importing the data.

The intelligent meteorological service center is able to monitorfarm land real-time data and signal early warnings accurate to1km×1km, protecting farmers from unpredictable weather.

In 2019, the corn output per mu (about 0.067 hectare) in thebase exceeded 700 kg, twice of that of land cultivated by localfarmers themselves.

To ensure absolute food quality and safety, the Company has realized traceability across the whole chain from “a seed toa drop” with grain life-cycle traceability management implemented in bases. The Company collected growth logs, farmingwork records, and land inspection records of all bases and uploaded all the information to the MAP technology servicecenter to optimize plantation and process control by way of data analysis and remote monitoring. The Company has im-plemented monitoring and information management throughout the whole process of plantation, harvest, storage, andtransportation, realizing 100% traceability of unprocessed liquor grains. Raw materials produced at bases rst have to beexamined and selected according to sensory, physical, and chemical indexes, and only those qualied can be admittedas grains to produce Wuliangye liquor. The Company’s comprehensive yield rate of raw materials increased by 4.3% to

91.9% compared with 2018, with steady improvement of raw grain quality.

Control unprocessed grain traceability

Science and technology support to explore sustainable developmentEstablish research platforms

Improve seed breeding technology

The Company has established a model platform integrating industrial, agricultural, scientic, and technologi-cal forces to explore the sustainable development of the bases.

The Company improved liquor grain quality and seed breeding technology to en-sure standard operation of “plantation, harvest, storage, and transportation” in allthe bases.

Sichuan Provincial Engineering Technology Research Center on Liquor Grains

At the liquor grain summit, experts had in-depth discussions on how “industry facilitates agriculture, agriculture supports industry,

and the integration of the rst, second, and tertiary industries”, and explored the sustainable development of the liquor grain indus-

try in terms of liquor production raw materials, production process and technology, talent education, and academic exchanges.

Sponsored by Wuliangye, Sichuan University of Science and Engineering, and Sichuan Xike Seed CompanyThe rst above-provincial research center on liquor grain in ChinaAcademician Yuan Longping as the center’s special consultantA technical team consisting of 8 academicians from the Chinese Academy of Engineering and other experts

Research project of Wuliangye liquor grains

Cooperation with multiple scientic and technologic institutes.Development of technologies of green plantation, organic cultivation, and pest andweeds control for liquor grains.Creation of liquid chromatograph-mass spectrometer method that can simultaneouslydetect 10 kinds of mycotoxins listed in the national standards, formulation of relatedenterprise standards, and development of fast analytical method for unprocessed liquorgrains.

Tingyuelou - one of Wuliangye’s eight ancient liquor produc-tion workshops,is located in Dayuanli in the old downtown of Yibin,covering an area of 462 m?,and boasting 11 cellars from the Ming and Qing dynasties.

Chapter SixCultural Inheritance andPromotion

Protection ofliquor legacyPromotion ofliquor culture

Protection of liquor legacyProtect liquor legacy to inherit Chinese civilizationProtect Ming and Qing dynasty-era cellars

Inheritance of traditional process

Wuliangye has over 32,000 cellars, of which a group of 179 were passed down the Ming and Qing dynasties, representedby 8 ancient liquor production workshops like Changfasheng and Lichuanyong. There were 118 ancient cellars unearthedin the small-scale preliminary excavation. The ancient cellar group of Wuliangye is China’s oldest “living” cellars groupthat has the best-preserved structure, most comprehensive inheritance of traditional production process, and longest timein continuous use. The buildings of the ancient cellar group still keep the structure of “shop in the front and workshop atthe back” used in the Ming and Qing dynasties, making them a valuable cultural relic.

“Wuliangye” uses broomcorn, rice, glutinous rice, wheat, and corn, stirred by ”Baobaoqu” (a kind of saccharifying yeaststarter) and fermented in aged cellars. Wuliangye adopts the unique pure-grain solid fermentation technology that com-prises processes of supplementing solid vinasse ingredients, circular fermentation, layered vinasse extraction, layeredcellar entry, layered distillation, quality-based liquor abstraction and storage in jars, and complicated blending. Based onthe wisdom and technologies accumulated by ancient liquor producers, this process is characterized by “one best, threeexcellent, six initiative, and six outstanding blending”, making it a model example of the typical traditional production pro-cess of China distilled liquor. In 2008, the “traditional baijiu-making techniques of Wuliangye” were listed as a NationalIntangible Cultural Heritage.

Inheritance of cultural heritage

The Legend of Wuliangye - A Liquor of Time andA Flavor of 651 Years - A documentary co-pre-sented by Wuliangye and Beijing TVThis documentary centers on the living crypt-type fermen-tation cellars of the oldest workshops of “Changfasheng”,and depicts Wuliangye’s history, culture, local environ-ment, techniques and craftsmanship, vividly presentingWuliangye, “a strong-flavor liquor of China” to the audi-ence. It has been widely recognized due to its detailed re-search, well-structured logic, and interesting information.

Organization of the grand 1218 CeremonyThe grand ceremony was themed “Wuliangye inheritsthe ancient liquor legacy and produces eternal glory”,aiming to sing the high praise of Wuliangye’s essence,pass down its long-lasting liquor culture and craftsman-ship, and portray Yibin’s charm as Liquor Capital of Chi-na.Nearly a thousand people including the Company’ssenior management, foreign guests, dealers, and em-ployees participated in the ceremony.

Organization of the 3rd China International Festival ofFamous LiquorForeign guests from 11 countries and hundreds ofparticipants attended the event.The Wuliangye exhibition hall features an “adherenceto craftsmanship and producing strong-avor liquor ofChina” in its design.The Company held an art performance themed“strong-avor liquor of China and Wuliangye’s aroma”to tell the world Chinese liquor’s story and demon-strate Wuliangye’s excellent image as a representa-tive Chinese strong-flavor liquor and a leader in theliquor industry.

The Company continued to promote the protection of Wuliangye cultural heritage, exploring and passingdown the cultural legacy of Chinese famous liquors.The Company revised Wuliangye Protection Plan of the Ancient Cellar Group Relics of “Changfasheng” and“Lichuanyong”.The Company began to repair the auxiliary buildings of the Wuliangye ancient cellar group in a protectiveway.The Company compiled an album on Wuliangye ancient cellar cellars.The Company assisted China Alcoholic Drinks Association in the composition of China Famous Liquor series.

Advocacy of Wuliangye CultureConstruction of Wuliangye Culture and promotion of harmony

Establishment of corporate culture system

Protect the cultural foundation

Wuliangye sees the construction of corporate culture as an important drive for its high-quality development. It reshapesa comprehensive corporate culture philosophy structure based on values for the new era and international perspective toinspire employees to launch a “second startup” and contribute to reform and innovation in the spirit of “entrepreneurship”.

The ancient Five-Element Theory embodies the concepts of “unication of heaven and man” and “harmony in diversity”.It sees the universe as an integration of nature and man, and the world as harmony among all states, and seeks com-mon points while reserving di?erence. Therefore, it shares many similarities with today’s new development concepts likepeaceful development, win-win cooperation, and a community with a shared future for mankind, widely recognized andupheld by the whole world. Wuliangye puts “harmony, inclusiveness, and mutual appreciation” at the core of its corporateculture, intertwined with the Five-Element Theory and the concept of “unication of heaven and man” and “harmony indiversity”.

Wuliangye’s corporate culture systemCorporatemission

Qualityconcept

System andregulations

Corporate

vision

Brand con-cept

Training andresearch

Core valueideas

Innovation

concept

Promotion

Core values

MarketingconceptTransfor-mation

Awards and

honors

Ecologyconcept

Corporatespirits

Productionconcept

Safetyconcept

Renement andsupport

Core conceptsWork concept

Leadership andguidance

Promotion andimplementation

Promote cultural development

Wuliangye has been exploring new ways in cultural inheritance and innovation to promote Wuliangye culture to keeppace with the times and grow stronger.

Wuliangyeab Culture Research Institute co-established with Sichuan Academy of Social Sciences

Forum of “the Five-Element Theory and Harmony in Diversity”

The Institute is dedicated to researching Chinese baijiu culture and Wuliangye culture. Under the guidance of coresocialist values, it explores Wuliangye’s rich culture to better inherit Chinese baijiu culture and Wuliangye culture. Itserves as a platform for liquor cultural research, innovation, demonstration, communication, and inheritance. It setsup a think tank for Wuliangye culture research, comprising high-end professionals. It illustrates Wuliangye’s history,brand culture, and production culture, and shows leading gures and excellent cases amid Wuliangye’s SecondStartup to promote Chinese baijiu culture and Wuliangye culture to step onto the global stage.

It delved into the culture of “harmony, inclusiveness, and mutual appreciation”, and enriched thebrilliant Chinese liquor culture.

Zhangwanhe - one of Wuliangye’s eight ancient liquorproduction workshops,is located on Liuchen Street in the old downtown of Yib-in, covering an area of 542 m?,and boasting 20 cellars from the Ming and Qing dynas-ties.

Chapter SevenExchange and Collabo-ration

Industrial exchangeSharing with governmentsInternational cooperation

Industrial exchangeExchange insights to promote industrial development

In 2019, Wuliangye adopted a more inclusive and open approach in engagement with the international liquor industry inmultiple elds to share market opportunities, promote extensive consultation, joint contribution and shared benets in theglobal liquor industry, facilitate poverty alleviation, health and education, and build a community with a shared future forinternational liquor players.

Organization of 2019 International Wine & Spirits Alliance Summit

The event attracted roughly 400 guests from domestic and international governments, organizations, and leading liquor en-terprises.An open dialogue “to establish an open and inclusive alliance platform and promote the construction of a community ofshared future for international liquor players.”Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, delivered a keynote speech on inter-national liquor cooperation, construction of an open platform, exchanges on liquor cultures, famous liquor enterprises’ CSR,and alliance vision.

Participation in the 14th China International AlcoholicDrinks Expo held in ShanghaiThe event brought industrial associations, leading liquorenterprises, and experts under one roof to better demon-strate core values of strong-flavor liquor and promotehigh-quality development of liquor, especially strong-avorliquor, in the new era.Zeng Congqin, Chairman of Yibin Wuliangye, delivereda keynote speech titled Tell the Story of Strong-avor Li-quor and Highlight Core Values, showing that Wuliangyeis willing to cooperate with the whole industry to promotehigh-quality development of strong-flavor liquor to meetpeople’s increasing desire for a better life.

Organization of the 3rd Top 50 Business LeadersGroup of Chinese WineThemed Top-level Design and Practice on the Eve ofLiquor Industry ReformThe summit aimed to promote the high-quality de-velopment of Chinese liquor by providing platforms,converging resources, exchanging ideas, and o?er-ing insights.Wuliangye would discuss with the industry on newmodels in supply-side structural reform centering on“process innovation and liquor body innovation”.

Organization of “Wuliangye Cup” China Liquor NewSuper Cocktail Masters Competition 2019As a leading national cocktail competition, it attract-ed 35 master bartenders from home and abroadto create innovative flair cocktails with Wuliangye’sHuobao Liquor and Bingbao Liquor as base spirit,making Chinese liquor more fashionable and interna-tional, and thus more attractive to young consumers.

Co-organization of IBA Annual General Meeting 2019& the 68th World Cocktail ChampionshipsThe largest and most prestigious cocktail competitionin the world. About 100 British bartenders and Flairbartenders from 65 countries and regions attendedthe competition.“Wuliang Renjia”, one of the liquor series, was cho-sen as a base spirit by many competitors, and re-ceived wide acclaim.“Wuliangye ? Crystal Love” in the wedding ring-shaped bottle symbolizes Wuliangye’s cultural andemotional links with the international cocktail indus-try.

Active cooperation to lead by exampleSponsor the Famous Sichuan Baijiu Enterprise Alliance

Cooperation with Pernod Ricard to promote the development of the international wineindustryWuliangye and Pernod Ricard became international strategic partners, whose exchanges and cooperation coverinfrastructure construction, regional marketing system, brand culture, and international market resources.It would set a new benchmark for international wine cultural communication and facilitate the construction of thecommunity with a shared future for international wine players.

It represented a new stage for Sichuan baijiu’s development by constructing six systems of quality standards management,industry research management, origin promotion management, market expansion management, talent training, and capital uti-lization management.Wuliangye served as the rst rotating chairman of Famous Sichuan Baijiu Enterprise Alliance

Sharing with governmentsSharing value to boost economic development

Sharing industrial development to promote rural rejuvenation

Wuliangye has fullled its CSR and made great contributions to upgrade and create more added value for Chi-nese manufacturing.

TaxesIncrease in share priceDriver to Yibin’s developmentIn 2019, the Company made a totaltax payment of RMB 15.935 billion.Since being listed, the Companyhas paid RMB 107.986 billion oftaxes in total.

In 2019, Wuliangye’s share priceincreased by RMB 10.8/share, upby 22.13% YoY.

In 2019, Yibin’s GDP stood at RMB

260.189 billion, ranking No. 3 in

Sichuan (No. 4 in 2018). Its GDPgrowth of 8.8% topped SichuanProvince, 1.3% higher than provin-cial growth and 2.7% higher thannational growth.

“Sichuan shall not lose its gold brand of a major agricultural prov-ince”

- Xi Jinping, General Secretary of the CPC Central Committee

Construction of “Liquor Capital of China”Yibin City has been awarded titles of “China Baijiu Capital” and “Origin of World Top 10 Liquors” by China National LightIndustry Council and China Alcoholic Drinks Association, making it a prestigious brand on the global stage. In 2019, theCompany received 89 inspections from higher-level officials and governments, 64 exchanges from associations, en-terprises, media and foreign countries, and held 17 foreign exchange activities and 24 conferences and events of theGroup.

Visit from Georgian Wine Circulation Management andPromotion Seminar members in 2019The seminar, comprising government o?cials, experts andchateau representatives from countries along the “Beltand Road” like Moldova, Slovakia, Uzbekistan, Georgia,and Laos, visited Wuliangye. They gave high praises toWuliangye liquor’s rich and aromatic avor and hoped toenhance communication and technological and economiccooperation, delivering win-win results for all.

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Development of characteristic industries

Wuliangye Industrial Park - National Industrial Demonstration BaseWuliangye has built its park into a new-type light industrial demonstration base of famous national spirits with liquor pro-duction as the focus and diversied development implemented at the same time. As a Sichuan key characteristic growthindustrial park on a 100-billion scale, it is a world-leading park integrating characteristic ecological and cultural experi-ence and industrial tourism.In 2019, the park generated revenue of RMB 108.026 billion, up by 16.01% YoY, and realized a total prot of RMB 25.537billion, up by 26.8% YoY.

Rural Rejuvenation Fund + Boost Sichuan Black Tea IndustryWuliangye pioneered in China to establish the rst rural rejuvenation fund to support agricultural, tea, and liquor indus-tries in Sichuan by investing into the Chuan Hong Group, establishing Wuming Tea Holding Co., Ltd., and developingChina high-end black tea brand “Changjiang Hong”.

2019 “Sichuan Tea” Processing Technique Competition & the First Sichuan

“Wuliangye Cup” Manual Tea Processing Technique Competition

Recognition from international organizations

International cooperation

Lead by example in the construction of the “Belt and Road” Initiative

In December 2019, China and the EU signed the Joint Statement on Concluding the Negotiation of the Agree-ment on the Protection and Cooperation of the Geographical Indications between China and the EuropeanUnion, including 275 geographical indications from both sides in the appendix of the Agreement. This marks therst high-level bilateral geographical identication agreement signed by China with foreign players, bearing greatsignicance for the China-EU trade relationship.With both sides’ high recognition of Wuliangye and its influence in the European and international market,Wuliangye will enhance its presence in the EU market, o?ering a banquet of brilliant culture to international con-sumers.

On July 21, 2019, Wuliangye o?ciallybecame an APEC China BusinessCouncil Member and Li Shuguang,Chairman of Wuliangye Group andParty Secretary of Yibin Wuliangye,was elected a director and partic-ipated in the 2019 ACBC directormeeting. The Company adheres tothe concept of “harmony in diversityand mutual appreciation”, and playsan active role in fullling its responsi-bilities as a leading brand and majorplayer to amplify China baijiu’s voicein the world, advocates the construc-tion of the community with a sharedfuture for international liquor players,drives the international wine industryto share opportunities and develop-ment, and facilitates all stakeholdersin the world to communicate and co-operate with each other.

Fulllment of responsibilities as an international company

As a leading Chinese liquor producer, Wuliangye has grown into a highly inuential and recognized brand in the worlddue to its excellent quality and rich heritage.

As an international company, Wuliangye has been actively promoting cultural exchanges and information and resourcesharing between best-known international liquor brands and wine cultures.

Wuliangye Brand identied as a China-EU Geographical Indication

APEC China Business Council Member

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Fulllment of responsibilities as a Chinese companyAs a pioneer in the implementation of the “Belt and Road” Initiative, Wuliangye provides a universal sensory experienceto consumers around the world. Since 2016, it has attended over 20 top-level international political and economic events,and participated in many overseas activities as a member of Sichuan governmental delegations, bringing China liquor’shistory and culture to the world.

On October 14, 2019, “Wuliangye” International Friend-ship Cities Night, an important event during the 2019Belt and Road Forum for Cooperation and Developmentof Sichuan International Friendship Cities, was held inChengdu. It used Chinese baijiu culture as the bridgeand platform to continue the Silk Road spirit and facil-itate the closer exchanges between Sichuan Provinceand its friendship counterparts in the world. Over 300guests from 43 cities of 32 countries participated in theforum.

2019 Belt and Road Forum for Cooperation and Development of Sichuan InternationalFriendship Cities

Ms. Chen Lin, General Manager and Chief Engineer of YibinWuliangye, presented Wuliangye at the event.

Tang Bochao, Deputy General Manager of Yibin Wuliangye, participated in the roadshow on China’s Participation in Expo 2020 Dubai,

and Wuliangye was selected as an o?cial partner of the China Pavilion at the Expo 2020 Dubai.

Wuliangye at 2019 Global Innovators Conference

On the Luncheon Party of A Dialogue between China Sichuanand Japan Kansai Region, Li Yunze, Vice Governor of SichuanProvince, and Jun Arai, Vice Governor of the Osaka Prefectural

Government, drank Wuliangye liquor together.

Wuliangye Pavilion at the 3rd Western Chi-

na International Expo

Wuliangye Pavilion at the 2nd Western China Interna-

tional Fair for Investment and Trade

Du Ziping, Deputy Secretary of CPC Yibin Municipal Committee and Mayor of Yibin Municipal Government, Li Shuguang, Chairman of

Wuliangye Group and Party Secretary of Yibin Wuliangye, and Liu Zhongguo, then Chairman of Yibin Wuliangye,

participated in the 13th China International Alcoholic Drinks Expo

Zeng Congqin, Chairman of Yibin Wuliangye, and Zhu Zhongyu, Deputy General Manager, partici-

pated in the 14th China International Alcoholic Drinks Expo

Active participation in international exhibitionsEvaluation of Strong-avor liquor to highlight Chinese baijiu’s charm

Upholding the concept of “Wuliangye from China to the World”, the Company has fully played the role of a Chinese brandin promoting Chinese culture, allowing the world to better appreciate China.

Wuliangye Global Tasting TourWuliangye organized the tasting events in many countries to “tell stories of China brands” to the world.Footprints of Wuliangye Global Tasting Tour

Wuliangye was invited to the “Experience China” Open Day event held by the Chinese Consulate General in Munich.The Chinese Consulate General in Munich sent a letter of appreciation, expressing its recognition and gratitude forWuliangye’s e?orts in promoting Chinese culture, Chinese liquor, and developing friendship.

Liu Zhongguo, then Chairman of Yibin Wuliangye, sent a gift toKhatia, Deputy Minister, Ministry of Environmental Protection and

Agriculture of Georgia.

Letters of appreciation from the Chinese Consulate General in MunichLi Shuguang, Chairman of Wuliangye Group and Party Secre-tary of Yibin Wuliangye, and Evgeny Grigoriev, Chairman of theCommittee for External Relations of St. Petersburg, Russia, took

a group photo.

SingaporeMacao, China

JapanHong Kong,ChinaGeorgiaRussiaThe Nether-landsUnitedKingdomGermany

Tianxifu - one of Wuliangye’s eight ancient liquor pro-duction workshops,is located on Changchun Street in the old downtown ofYibin, covering an area of 608 m?,and boasting 23 cellars from the Ming and Qing dynas-ties.

Chapter EightCommitment to Corpo-rate Philanthropy

Targeted poverty allevia-tionCharity activitiesSupport for the People’sLiberation ArmyResponsible drinking

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Targeted poverty alleviationScientic plan to reinforce poverty alleviation system

Wuliangye has always regarded poverty alleviation as its most important political responsibility and livelihood project,exerting enormous e?orts to ensure poor people are free from worries over food and clothing and have access to com-pulsory education, basic medical services, and safe housing. Adhering to relieving poverty by industrial development, theCompany takes the supportive measures of “corporate investment, professional operation, and sharing benets with poorpeople”, and integrates “blood transfusion” (providing funds and materials and building houses and roads) and “bloodmaking” (building agricultural bases and workshops) with “intelligence and ambition empowerment” of joint Party con-struction, education support, and cultural activities to create Wuliangye’s unique long-term poverty reduction mechanism,striding towards a better future with the impoverished.

Based on di?erent resources and needs of designated counties, the Company has utilized its advantages in diversiedindustrial landscape and multiple platforms to implement di?erent projects to ensure those who were out of poverty in2019 or previous years would not return to poverty.

Establishment of long-term poverty alleviation mechanism

Consolidate progress made with poverty alleviation

Wuliangye Leading Group on Poverty Alleviation andDevelopment and its o?ce

101 households with a total of 420 peopleXingwen County, Yibin, and Litang County, Ganzi Prefecture

RMB 133.78 millionPingshan County, Yibin

Various supportive measures in terms of industrial develop-

ment, education, agricultural base construction, infrastructure,

and consumption.

Consolidate and enhance progress made with poverty allevia-tion and prevent relapse to poverty

Poverty alleviation organizations

Number of households out of povertyProvincial designated county for poverty alleviation

2019 expenditure on targeted poverty alleviationMunicipal designated county for poverty alleviation

Types of poverty alleviation measures

Poverty alleviation focus

Xingwen County, YibinLitang County, Ganzi PrefecturePingshan County, Yibin

In 2018, there were 83 house-holds of 336 people out of pover-ty. In April 2019, it was removedfrom the impoverished county list.

In 2018, there were 13 house-holds of 63 people in Shang-mayan Village, Xiamula Townshipout of poverty. In 2019, Jidi Fruitand Vegetable (Shiitake Mush-room) Base in Litang County -supported by Wuliangye - paidRMB 500,000 of dividends toShangmayan villagers.

In 2019, the Company activelyfulfilled the poverty alleviationtask of Baixiang Village in Ping-shan County, Yibin, and helped5 households of 21 people out ofpoverty.

Targeted measures to support poverty alleviation

The Company has explored the new structure and operation system of rural collective economic organizations, and in-cluded poverty alleviation-targeted industries into the management and operation of the rural collective assets manage-ment company.

Poverty alleviation by industrial development

Wuliangye invested RMB 1.2495 million to construct the 73-hectare Wuliangye Qingshanyan Bamboo Plantation(Nursery) Industrial Demonstration Base. It has “kept bamboo industry at its core while developing in multipleareas”, and realized e?ective connection between “supporting company + village’s assets company + agricultur-al base + rural cooperative + farmers”. By developing supportive industries, it has transformed unused lands inQingshanyan Village into “fertile land” So far, the base has achieved a total income of nearly RMB 600,000 for thevillage by leading the development of the rural collective economy, and paid dividends of roughly RMB 100,000based on equities.

Li Shuguang, Chairman of Wuliangye Group and Party Sec-retary of Yibin Wuliangye, and Yang Yunxia, Chairwoman ofLabor Union of Yibin Wuliangye, visited Qingshanyan Village,o?ering directions on poverty alleviation by industrial devel-

opment.

Zeng Congqin, Chairman of Yibin Wuliangye, accompaniedLi Yunze, Vice Governor of Sichuan Province, to visit Qingsh-

anyan Village.

Bamboo Plantation (Nursery) in Qingshanyan Village, Xingwen County

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In addition to a donation of RMB 2.1 million, the Company integrated RMB 12 million to build the 2.8-hectare JidiFruit and Vegetable (Shiitake Mushroom) Base. By cooperation with Fresh Hema and JD Farm, it has realizedonline-to-o?ine marketing. Shiitake mushroom and agaric became Litang County’s rst products with the nationalgreen food label, whose production is under the support of the Company. So far, the base has achieved a total in-come of over RMB 7.1 million for the village by leading the development of the rural collective economy, and paiddividends of over RMB 1.5 million.

Jidi Fruit and Vegetable (Shiitake Mushroom) Base, Shangmayan Village, Xiamula Township, Litang County

Wuliangye liquor grain bases transform “blood transfusion” to “blood making” in poverty alleviation. As of 2019, the liquorgrain bases have increased the average annual income of nearly 30,000 farmers by over RMB 1,000. Next, Wuliangyewill continue to enhance the liquor grain base development for poverty alleviation in terms of horizontal and vertical cov-erage.

Poverty alleviation by liquor grain base construction

Contract farmingIntelligence and ambition empowermentThe Company encouraged farmers to adopt moder-ate-scale management by signing supportive con-tracts with poor famers directly.The Company made poverty alleviation plans fordeveloping rice and corn industries, and providedagricultural inputs for free.The Company has raised the price in contracts withpoor farmers.

The Company provided technical training and ex-pert services on liquor grains.Poor farmers were directly engaged in the base’slabor work and eld management.Poor farmers were involved in a whole variety ofcomparative tests of liquor grain so that they har-nesses the standard production technique of liquorgrains, which can prevent them from returning topoverty.The Company has enlarged the project by including 3 districts, 7 counties, and over 100 townships under Yibin’sjurisdiction, Cangxi County of Guangyuan City, and Youxian District and Zitong County of Mianyang City.The project was carried out down to the village level, such as Luobailiang Village and Jiaochang Village in Xingw-en County, Yunxing Village in Gongxian County, and Luanshishan Village in Jiang’an County.

Horizontal coverage

Vertical coverage

Poverty alleviation by education

On July 10th, 2019, the donation ceremony of Wuliangye liquor grain special order input was held in Luan-shishan Village, Yangchun Township, Jiang’an County, Yibin.

Wuliangye has raised the development awareness of the poor population by o?ering education support.

Ensure children have access to a?ordableeducation, good learning environment,and su?cient stationary.Donate in cash to build school buildingsand in kind of educational materials, andprovide scholarships to prevent intergen-erational transmission of poverty.

Wuliangye implemented culture-basedpoverty alleviation projects to lead the im-poverished to develop the awareness ofself-empowerment, and to make e?orts torealize their goals.

The “Wuai Building” in Yunlong Elementary School, Xingwen County was officiallycompleted, for which Wuliangye donated RMB 1.07 million.

The Company donated RMB 50,000 to renovate Dayuan Ethnic Elementary SchoolXinjie Village Elementary School in Xianfeng Miao Township, Xingwen County.The Company donated 300 packages with a total worth of RMB 30,000 to schools inXingwen County and Pingshan County.The Company provided scholarships to 20 outstanding college students who werefrom impoverished families in Litang County, totaling RMB 100,000.The dealers association of Wuliangye Sichuan Marketing Region donated education-al materials and multi-media facilities with a total worth of RMB 120,000 to XiamulaTownship.The Company donated RMB 2 million to set up a talent development fund in XinlongCounty and Yajiang County.The Company donated RMB 640,000 to help Baixiang Village, Pingshan County, tobuild a village-company joint Party construction demonstration base themed “WuliangNew Village and Virtuous Baixiang”.

The Company donated RMB 2.48 million to the acrobatic training project of Yibin, help-ing 23 impoverished children to learn acrobatics in Hebei Wuqiao Acrobatic Art School.

Activities in 2019Education concept

Wang Zhengpu, member of the Standing Committee of the CPC Sichuan Provincial Committee and Director of the

Organization Department, led a team to visit the shiitake mushroom base in Litang County.

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The Yunlong School in Xingwen County was damagedin the earthquake on December 16th. Wuliangye donat-ed RMB 1.07 million to build the “Wuai Building” for theschool. Li Shuguang, Chairman of Wuliangye Groupand Party Secretary of Yibin Wuliangye, attended theinauguration ceremony of the building. In his speech,he paid tributes and expressed festival greetings toteachers, and conveyed his best wishes for students.

Make donations to Yunlong School in Xingwen County to build “Wuai Building”

Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, visited the fair and encouraged employees to pur-

chase agricultural products

In 2019, the Company combined measures of centralized procurement, trade fairs dedicated to products from poor re-gions, and diversication of marketing channels to bring distinctive agricultural products from its designated poverty alle-viation regions to be consumed by the Company and our employees. By purchasing a total worth of RMB 26.6 million ofproducts, it fullls the same purpose as that of donation. Meanwhile, the Company established a long-term mechanism of“purchase instead of donation”, which has been implemented on a regular basis.

Poverty alleviation by consumption

From 2018 to 2020, Wuliangye donated RMB 300million to build roads to facilitate the transportationof liquor grain and bamboo bases, and for villages,facilitating the development of Yibin’s 3 districts and7 counties, and contributing to transportation infra-structure construction in Yibin and the implementa-tion of rural rejuvenation.

E?orts shall be made to reinforce the implementation of the concept “lucid waters and lush mountains are in-valuable assets”, and to nd innovative paths in industrial development in order to expand markets, diversifysales channels, and deliver more achievements in poverty alleviation by industrial development.

-Li Yunze, Vice Governor of Sichuan ProvinceFirst of all, we need to encourage industrial development and provide assistance to diversify sales channels,explore markets, and build products of poor regions into recognized brands. We encourage Wuliangye’s teamsstationed in villages to actively interact with local villagers in order to help them to nd an e?ective method toget rid of poverty in the long run.

-Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin WuliangyeFor years, Wuliangye has provided us with a lot of help. To be particular, Chairman Li Shuguang led teams topay multiple eld visits to our county. In addition to giving guidance and suggestions, he also sent warm greet-ings and donated in cash and kind to the impoverished people. By way of “purchase instead of donation”, “in-dustry incubation”, and “poverty alleviation by education”, Wuliangye has injected great power into our county’poverty alleviation work.

-Zhang Jian, Secretary of CPC Xingwen County Committee

We are very grateful for what Wuliangye has done for us. This time, Wuliangye’s employees and canteens pur-chased our potatoes, a way of “purchase instead of donation”. Villagers are thankful for that. On behalf of thetownship CPC committee, government, and all villagers, I’d like to express our sincere appreciation.

-Jiangyangqupi, vice head of Xiamula Township, Litang CountyThank you very much, Wuliangye! Good job, Wuliangye!

-Zhengga and his family, an impoverished household in Litang County

Poverty alleviation by transportation

Message of supportPoverty alleviation consensus

Awards for poverty alleviation e?ortsTop 50 Best Social Organization Poverty Alleviation Cases by the State Council Leading Group O?ceof Poverty Alleviation and Development2018 Leading Designated Poverty Alleviation Unit Under Sichuan’s Direct Control2018 Sichuan Outstanding Enterprise in Poverty Alleviation by Industrial Development2019 Sichuan Leading Organization in Poverty Alleviation2019 Annual Sichuan Charity EnterpriseThe 2nd Sichuan Charity Award - Most Charitable Donating Enterprise

“Wuliangye Education Fund” donates RMB 2 million on a yearly basis to help excellent impoverished studentsand reward teachers, beneting a total of 32,822 people.The Company donated RMB 3.465 million to set up the “Top Innovator Education Award”.The Company has set up a number of scholarships like Wuliangye Teaching Scholarship, Wuliangye Scholar-ship, Wuliangye Encouragement Scholarship, and Wuliangye “Belt and Road” Scholarship for Foreign Students.From 2018 to 2022, it will donate RMB 7 million per year to reward excellent teachers and students of SichuanUniversity of Science & Engineering.

Charity activities

Philanthropic e?orts to cultivate hope

Wuliangye Charity Fund has made donations in a transparent and professional way with focus on poverty alleviation, di-saster rescue, caring for the aged with no family, and education to promote the construction of a harmonious society.

Support for students

Caring for children

“Care for children and Relay of Love” event held by Wuliangye

Charity FundSichuan Charity Event themed “Charity Flourishes in Sichuan”

Zou Tao, Executive Deputy General Manager of Yibin Wuliangye, Tang Bochao, Deputy General Manager, and Yang Yunxia, Labor

Union Chairwomen, attended the 2019 Scholarship Awarding Ceremony of “Wuliangye Education Fund”.

A donation of RMB 500,000 to LiangshanAt the 1st Sichuan Charity Event themed “Charity Flourishes in Sichuan”, Wuliangye Charity Fund donated RMB 500,000to address fund shortages of toys and physical education facilities in kindergartens in Liangshan, where “one kindergar-ten per village” project has been in implementation.

On May 23, 2019 Moscow local time, the Russian Carefor Visually-impaired Children Foundation Charity Din-ner was held in the Spartak Stadium in Moscow, withWuliangye as the sole sponsor. In addition to providingliquor for the dinner, the Wuliangye liquor in the pan-da-shaped bottle was also in the auction lists of thischarity sale, showing Wuliangye’s care and support forchildren with eye diseases in Moscow.

Wuliangye’s care for visually-impaired children in Moscow

Earthquake rescue

In the beginning of 2019, the Company donated a total of RMB 1.3884 million to Xingwen County, Yibin, after it was hit byan earthquake on December 16th, 2018.On June 17th, 2019, Changning County, Yibin, was stricken by an earthquake with a magnitude of 6.0 on the Richterscale. Wuliangye responded without hesitation and dispatched a rescue team to the epicenter region for relief. In addi-tion, it donated RMB 20 million for rescue and reconstruction.

The power of volunteers

Wuliangye Youth Volunteer Team was awarded “the3rd Yibin Outstanding Youth Volunteer Organization”.Deng Shiming, a young employee of Wuliangye, wasawarded “the 3rd Yibin Top 10 Best Youth Volunteer”due to his excellent performance in volunteer activitiesto discourage improper behavior during the “Construc-tion of National Civilized Cities” project launched byYibin.

Number of volunteer service3,000

PersonHours of volunteer service16,552Hours“Construction of National Civilized Cities” volunteer service

Liu Zhongguo, then Chairman of Yibin Wuliangye, attended the

Changning earthquake donation ceremony.

Wuliangye rescue team participated in Changning’s rescue work.

“Learning from Lei Feng - Volunteer Service Month” activity

Support for the People’s Liberation ArmyEnhance mutual support to better unify the army with the people

Wuliangye has fully implemented the guidelines of the 19th CPC National Congress and President Xi Jinping’s commentson mutual support (mutual support between the army and the region) for a new era and fullled its CSR in supportingnational defense and army. Under the direction of the local government, it has established a close relationship with thearmy stationed in Yibin, and continued to carry out support activities for soldiers and their families. The Company revisedWuliangye Group People’s Armed Forces Management Regulation, providing political and systematic guarantees for theCompany’s support for soldiers and their families.

Implementation of the mutual support spirit for a new era

Innovation in practical work to show careVisit army stationed in Yibin

On the occasion of major holidays and festivals, theCompany would hold activities to facilitate mutual under-standing and support between the Company and the armyas the Rocket Force, Army Air Corps, and armed policedetachment stationed in Yibin, and donated air condition-ers and washing machines with a total worth of over RMB200,000.

Resolution of troop infrastructure di?cultiesThe Company has thoroughly implemented Yibin MunicipalMutual-support O?ce’s notice on visiting troops stationedin Yibin. In addition to visiting the troops, it has activelysupported troops with cultural and sports facilities with atotal worth of RMB 11,000.

Diversify cultural life of soldiers

Tang Bochao, Deputy General Manager of YibinWuliangye, celebrated the “August 1st” Army Day withWuliangye’s militia by holding various activities like com-petition games themed on the “Celebration of the August1st to reinforce military spirit and make contribution in thenew era” and tea parties.

Visiting veterans and entitled groupsOn the occasion of major holidays and festivals, the Com-pany would hold seminars and greeting activities for em-ployees who used to serve in the army or are family mem-bers of soldiers or martyrs to convey the Company’s careand greetings. Such activities covered 3,034 veterans and266 personnel who were family members of soldiers ormartyrs, sending consolation gifts and money with a totalworth of RMB 1.65 million.

Responsible drinking

Active promotion of healthy drinkingWuliangye has always adhered to the great ambition of building a community with a shared future for international liquorplayers and bravely shouldered the responsibility of promoting the development of the whole industry. By continuing toencourage healthy and responsible drinking, it has helped consumers to become healthier and happier. Together withChinese baijiu companies, Wuliangye would develop a robust responsible drinking IP characterized by clear-cut identi-cation, emotional attachment, and Chinese liquor culture and storytelling. This “robust Chinese responsible drinking IP”will be shaped by being used in the communication of both the industry and all liquor brands.

Since 2014, Wuliangye has held annual activities to popularize responsible drinking and to enhance health awarenessamong consumers, greatly recognized by the whole society. It not only leads the trend of responsible drinking, but alsostrengthens the healthy lifestyle.

On October 27th, 2019, the Company held the 2019 National Responsible Drinking Awareness Week (Sichuan branchvenue), themed “Caring For and No Alcohol For Minors”, which was the fth year in a row that the Company held thisevent. On the site, there was a “responsible drinking” interactive zone, which displayed achievements, presented knowl-edge on this subject, and also provided creative placards and photo frames for visitors to take photos, bringing fun anduseful tips to people in the community.

Popularization of responsible drinking

Responsible Drinking Week

Enrichment of responsible drinking culture throughinnovationCostumed flash performance of Responsible and RitualDrinking, a themed short film, cross talk No Drinking forMinors, and an original song No Drinking for Minors by aband

Wuliangye’s dealers vowed on the stage.Never sell the idea of drinking to minors.Never sell liquor to minors.

Drink responsibly and do not drive after

drinking

Drink properly and live a happy lifeNo drinking for minorsThemes of National Responsible Drinking Days

Looking back at 2019, under the leadership of the CPC Sichuan Provincial Committee and Sichuan Government, as wellas CPC Yibin Municipal Committee and Yibin Government, with the trust and support of all shareholders, investors, andfriends, we closely followed the Company’s strategies and upheld new development concepts. By driving reform andhigh-quality development and fullling social responsibilities, we achieved a record-high performance.Looking to 2020, Wuliangye would continue to adhere to the core values of “creating outstanding experience for custom-ers, happiness for employees, and returns for investors”, unify ideas and e?orts between managers and employees, aswell as the Company and partners to stride forward with the industry for a brighter future.

?Promote e?cient operation of product life cycle quality management system.?Enhance comprehensive quality management to ensure complete control over pro-duction process.?Increase technical innovation capacity across the whole product chain based onhigh-level research platforms.

?Lead consumption upgrading, empower hot products, and make products more dis-tinctive.?Meet various needs of di?erent consumer groups and improve product portfolio cov-ering di?erent levels, positions, and price ranges.?Improve product structure of Wuliangye brand “1+3” and liquor series of 4 nationalstrategic products.

?Utilize Wuliangye’s advantages in fermentation cellars, processes, and blendingformula to create an IP of aged cellars and value benchmark of ancient liquor, and tohighlight the unique origin and geographical identication, emphasizing the brand’sauthenticity.?Upgrade packaging while keeping core elements and style stable and unied.

?Provide opportunities and rights on equal employment, reasonable salary, andsmooth communication and complaint.?Provide diversied training programs and promote compensation system reform tohelp employees realize self-value.?Continue to create a safe and comfortable working environment and meet employ-ees’ desires for a more colorful life.?Continue to implement a support mechanism to care and support employees andhelp them solve problems.

?Enhance safety management and emergency measures to ensure safety indicatorssuch as zero major accidents.?Expand production capacity and accelerate the implementation of major projectsincluding the integration project of nished liquor packaging and intelligent warehous-ing and delivery, the automation renovation of liquor grain process warehouse andgrinding, and the technological upgrading of blending and warehousing cellar.?Preserve cellars from the Ming and Qing dynasties and promote Wuliangye’s protec-tion of cultural relics.?Reshape Wuliangye’s corporate culture system and leverage roles of WuliangyeCulture Research Institute.?Advocate the fine Chinese traditional culture, facilitate win-win cooperation, andbuild a community with a shared future for mankind. Strengthen international ex-changes and follow the steps of the “Belt and Road” Initiative.

Co-create a

happy life

A communitywith a sharedfuture

Qualityguarantee

Sharing harmonyand happinesswith consumers

Brand

building

Drive growthtogether withemployees

Work

safety

Cultural

Heritage

Vision: Creating a classic combination of ancient cellarpreservation with modern aromatic avor

?Accurately enhance communication and continue to optimize investor relations man-agement.?Accurately provide follow-up services to enhance capacity to generate returns forinvestors.?Accurately disclose information to reinforce Chinese and international investors’ un-derstanding and recognition.

?Establish a green development system to save energy, reduce consumption, andcontrol pollution.?Launch green projects to build ecological Wuliangye parks.?Upgrade liquor grain bases and promote intelligent agriculture and sustainable devel-opment.

?Accelerate opening-up and cooperation, share market opportunities with internation-al peers, and facilitate global peers’ engagement in charity like poverty alleviation,health, and education.?Discuss Chinese baijiu’s innovative model and enhance baijiu culture based on in-dustry associations.

?Upgrade channels to consolidate achievements made in dealer transformation toincrease their capacity in exploring markets.?Conduct in-depth cooperation with mainstream e-commerce platforms and new retailchains to strengthen price management and control over internet channels.?Facilitate traceability management and modern supply chain construction for liquorgrains.?Make environment requirements part of dealer selection, and promote and carry outgreen procurement.

?Fulll targeted poverty alleviation responsibility in a science-based manner by long-term mechanism and targeted measures to cement the results of poverty alleviation.?Continue to organize various charity activities in terms of education, donation, cul-ture, volunteer service, and earthquake rescue.?Enhance support to the army and take innovative measures in this regard.?Advocate responsible drinking and organize responsible drinking awareness weekactivities.

A communitywith a sharedfuture

Embrace theharmonious andhappy future

Create valuetogether withshareholders

Energy con-servation andenvironmentalprotection

Shape the futuretogether with theindustry.

Develop together

with partners

Harmoni-ous soci-ety

Indicator index

IndicatorsPage

Part One Pref-ace (P)

(P1) Report specica-

tion

P1.1 Quality guarantee

About this reportP1.2 InformationP1.3 Report structure(P2) Message fromSenior Management

P2.1 CSR situation analysis and strategic considerationP1-2P2.2 CSR annual progressP1-2　

(P3) CSR key points

P3.1 CSR major eventsP14P3.2 Progress and achievements of CSR key issuesP1-2(P4) About Wuliangye

P4.1 Corporate strategy and cultureP10P4.2 Organization structure and operation regionP10, P45-46P4.3 Main products, services, and brandsP26-28P4.4 Corporate size and inuenceP10

Part Two CSRmanagement (G)

(G1) Vision

G1.1 Corporate mission, vision, and values P10G1.2 CSR concept and slogan P16(G2) Strategy

G2.1 Identication and management of CSR material issuesP18G2.2 CSR strategic plan and annual planP16G2.3 Facilitate integration of CSR into corporate developmentstrategy and daily operation

P16G2.4 Build an inuential, sustainable, and responsible brandP15(G3) Organization

G3.1 Senior management’s support for CSR workP16G3.2 CSR leading organization and working mechanismP45, P105G3.3 CSR organization structure and responsibilitiesP16(G6) Engagement

G6.1 Identify and respond to appeals from stakeholders P17-18G6.2 Corporate-led CSR communication and participation eventP17-18G6.3 Economic, environmental, social conventions, principles,or other initiatives initiated by other parties and participated orsupported by the Company

P81

Part Three: Mar-ket performance(M)

（M1）Responsibilities ofshareholders

M1.1 Standardize company governanceP45-48Responsibilities of shareholdersP47M1.3 Anti-corruptionP51M1.4 Information disclosure in compliance with laws and regula-tions

P49M1.5 Protect interests of minority investors P49M1.6 Growth P50M1.7 ProtabilityP50M1.8 SafetyP50

（M2）Responsibilities ofcustomers

M2.1 Increase product/service availabilityP26-28, P62-66Responsibilities of customersP29-32M2.3 Standard-reaching rateP30M2.4 Adhere to innovation-driven approachP21M2.5 R&D investment P23M2.6 New patents P25M2.7 Industrial transformation of scientic and technologicalresults

P28M2.8 Prohibition of fake or misleading promotion P64M2.9 Product knowledge popularization and customer training P64, P67M2.11 Fair tradeP65M2.13 Customer information protectionP65M2.14 Active after-sales service systemP65M2.15 Active response to consumers’ complaintsP65M2.16 Complaint resolution rateP65M2.18 Customer satisfaction rateP65

IndicatorsPage Part One Pref-ace (P)(P1) Report specica-tionP1.1 Quality guaranteeAbout this reportP1.2 InformationP1.3 Report structure(P2) Message from Senior ManagementP2.1 CSR situation analysis and strategic considerationP1-2P2.2 CSR annual progressP1-2　(P3) CSR key pointsP3.1 CSR major eventsP14P3.2 Progress and achievements of CSR key issuesP1-2(P4) About WuliangyeP4.1 Corporate strategy and cultureP10P4.2 Organization structure and operation regionP10, P45-46P4.3 Main products, services, and brandsP26-28P4.4 Corporate size and inuenceP10Part Two CSR management (G)(G1) VisionG1.1 Corporate mission, vision, and values P10G1.2 CSR concept and slogan P16(G2) StrategyG2.1 Identication and management of CSR material issuesP18G2.2 CSR strategic plan and annual planP16G2.3 Facilitate integration of CSR into corporate development strategy and daily operationP16G2.4 Build an inuential, sustainable, and responsible brandP15(G3) OrganizationG3.1 Senior management’s support for CSR workP16G3.2 CSR leading organization and working mechanismP45, P105G3.3 CSR organization structure and responsibilitiesP16(G6) EngagementG6.1 Identify and respond to appeals from stakeholders P17-18G6.2 Corporate-led CSR communication and participation eventP17-18G6.3 Economic, environmental, social conventions, principles, or other initiatives initiated by other parties and participated or supported by the CompanyP81Part Three: Mar-ket performance (M)（ M1 ）Responsibilities of shareholdersM1.1 Standardize company governanceP45-48Responsibilities of shareholdersP47M1.3 Anti-corruptionP51M1.4 Information disclosure in compliance with laws and regula-tionsP49M1.5 Protect interests of minority investors P49M1.6 Growth P50M1.7 ProtabilityP50M1.8 SafetyP50（ M2 ）Responsibilities of customersM2.1 Increase product/service availabilityP26-28, P62-66Responsibilities of customersP29-32M2.3 Standard-reaching rateP30M2.4 Adhere to innovation-driven approachP21M2.5 R&D investment P23M2.6 New patents P25M2.7 Industrial transformation of scientic and technological results P28M2.8 Prohibition of fake or misleading promotion P64M2.9 Product knowledge popularization and customer training P64, P67M2.11 Fair tradeP65M2.13 Customer information protectionP65M2.14 Active after-sales service systemP65M2.15 Active response to consumers’ complaintsP65M2.16 Complaint resolution rateP65M2.18 Customer satisfaction rateP65		IndicatorsPage Part Three: Market perfor-mance (M)（ M3 ）Partners responsi-bilitiesM3.1 Honest management P67-70Partners responsibilitiesP67-70M3.4 Strategic sharing mechanism and platform P67M3.6 Support industry developmentP93-95M3.7 Fair tradeP67-70M3.8 Supplier-oriented CSR policies, initiatives, and requirementsP75M3.10 Supplier’s CSR daily management systemP69-70Part Four Social perfor-mance (S)（ S1 ）Government re-sponsibilitiesS1.1 Law compliance system constructionP31Government responsibilitiesP30S1.3 Total tax payment P96S1.4 Support and participate in comprehensive deepening reformP96S1.5 Creation of more jobsP56S1.6 Number of employees recruited during the reporting periodP56（ S2 ）Employee respon-sibilitiesS2.1 Employee structureP56 S2.2 Equal employmentP56S2.3 Signing rate of labor contractP56 S2.7 Anti-forced labor, harassment, and abuseP56S2.8 Diversication and equality of opportunityP57S2.9 Annual days of paid vacation per personP57S2.10 Compensation & welfare systemP57S2.11 Occupational health managementP35S2.12 Guaranteed working environment and conditionsP35S2.13 Employee psychological health assistanceP57, P61S2.14 Employee trainingP58S2.15 Annual training performanceP58S2.17 Work-life balanceP59-60S2.18 Support to sta? in needP61S2.19 Employee satisfactionP61（ S3 ）Work safetyS3.1 Work safety management system P33Work safetyP37S3.3 Safety education and training P34S3.4 Safety training performance P34S3.5 Work safety investment P35S3.6 Number of accidents P35S3.7 Casualties P35（ S4 ）Community re-sponsibilitiesS4.4 Local procurement policyP82S4.5 Support the development of women, indigenous people, farmers, herdsmen, and shermen in the communityP97, P105-109S4.6 Charity policy and main public welfare areasP111-112S4.7 Establish enterprise charity fund/foundationP111-112S4.8 Total donationP4S4.9 Build brand charityP114S4.10 Supportive policies and measures for volunteer activitiesP112S4.11 Employee volunteer activity performanceP112S4.12 Facilitate targeted poverty alleviationP105-110S4.13 Investment of special poverty alleviation fundP105S4.14 Number of people out of povertyP105

Dear readers,

Thank you for reading Wuliangye Corporate Social Responsibility Report 2019. In order to provide you and other stake-holders with more professional and valuable CSR information, please answer the following questions to help us improve CSRand sustainable development management.Please give scores from 1 to 5 to the questions below (1 is the lowest and 5 the highest)

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IndicatorsPage

Part Five En-vironmentalperformance (E)

（E1）Green manage-ment

E1.1 Environmental management systemP73E1.6 Establish green supply chainP82E1.7 Support green and low-carbon industrial developmentP81E1.9 Deal with climate changeP74E1.11 Proportion of non-fossil energy P73

（E2）Green production

E2.1 Green designP74E2.2 Purchase and use environmentally-friendly materialsP75E2.3 Increase energy utilization e?ciencyP73E2.6 Policies and measures for clean energy utilizationP73-74E2.7 Consumption of clean energyP73E2.8 Policies and measures for water conservationP76E2.11 Policies, measures, and technologies to reduce gasemission

P74E2.15 Policies, measures, and technologies to reduce wastedischarge

P77E2.17 Policies and measures for circular economy P76E2.18 Development performance of circular economyP76E2.19 Green packagingP75E2.23 Policies and measures for energy conservationP73E2.24 Plan and action to reduce greenhouse gas emissionP74（E3）Green operation

E3.1 Green o?ce measures P75E3.2 Green o?ce performance P75E3.3 Ecological restoration and management P79-80E3.4 Protect biodiversityP80E3.6 Environmental charityP81Part Six Reportappendix (A)

（A1） Next steps: Company’s CSR plan P115-116（A2）

Key performance table: Centralized presentation of company’sannual CSR key data

P4（A3）

Company honors: Centralized presentation of company’s an-nual CSR major honors

P15（A5）

Reference index: Use of indicators required to be disclosed bythe Guidelines

Indicator index（A6） Feedback: Questionnaire and feedback channels About this report

Feedback

Wuliangye Yibin Co., Ltd.

Address: No. 150, Minjiang West Road, Cuiping Dis-trict, Yibin, SichuanPostal code: 644007Telephone: (0831) 3567000, 3566937, 3566858Fax: (0831) 3555958E-mail: 000858-wly@sohu.comO?cial website: http://www.wuliangye.com.cn

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