Inclusive Wuliangye
● Harmonious Society
About This Report
Designation
For the convenience of our readers, "Wuliangye", "the company", "company", and "we" are used in this report to refer to"Wuliangye Yibin Co., Ltd."AvailabilityThis report is available online and in print copy (environmentally-friendly paper) . The online report can be viewed anddownloaded at: http://www.cninfo.com.cnContact:
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 13th annual corporate social responsibility (CSR) report to have been released by Wuliangye Yibin Co.,Ltd. since 2008. Based on our principles of being objective, standard, transparent, and comprehensive, this report disclos-es in detail Wuliangye's practices and performance in areas of its responsibilities to environmental, social, and governance(ESG) causes in 2020.
Report PeriodThis report covers the period lasting from January 1, 2020 to December 31, 2020. To put the report clearer context andmake it more complete, this report has included data from previous years.Report Scope
This report covers Wuliangye (SZSE: 000858) and its subsidiaries.
Release PeriodThis report is released annually. The 2019 report was released in April, 2020.
Data Resource and CredibilityData contained in this report is collected from government public data, Wuliangye's internal statistical statements,third-party surveys, administrative policies and reports, and third-party evaluations and interviews. This report has beenreviewed and approved by the Board of Directors 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 Listed Companies(Exposure Draft)
Contents
010203
0405
A Messagefrom SeniorManagementAwardsAbout WuliangyeCompany ProleHighlights of 2020
Party BuildingCorporate GovernanceRisk Management and ComplianceCorporate CultureCorporate Social ResponsibilityManagement
Fight against COVID-19Targeted Poverty AlleviationCharitiesResponsible DrinkingPromote Baijiu Culture
Value ChainCustomer FirstInvestor RelationsEmployee Recruitment andDevelopmentIndustrial Progress
Environmental ManagementSustainable ProductionEco ParkTop-Quality WarehousesHealth and Safety
Production TechniquesQuality ManagementScientic and Technological Inno-vationNew ProductsDigitalization
Five excellentcharactersare the foundation ofour development
Wuliangye Culture -a care giver and storyteller
Wuliangye's network- collaboration with allparties
Five qualitiesreect the essence ofnature
Wuliangye's quality- high standards acrossall areas
Future outlookPerformanceIndexFeedback
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020A Message from Senior Management
Li ShuguangZeng Congqin
Achievements and progress that have stood the test of time. Facing once-in-a-generation challenges posed by COVID-19in 2020, the company fully implemented a series of decisions and arrangements issued by the Central Committee of theCommunist Party of China (CPC) , State Council, and CPC committees and governments of Sichuan Province and YibinCity, seeing annual development goals as its priorities. By yielding continuously double-digit growth, it delivered a remark-able performance in virus containment and business development during the nal year of the 13th Five-Year-Plan period.In 2020, Wuliangye was committed to improving its Baijiu products and customer experiences. In line with itsbrand-based development strategy, Wuliangye leveraged advantages in fermentation pits, production techniques, andformulas, and led consumption upgrading by improving product quality and innovating production techniques. It enrichedthe portfolio by launching Classic Wuliangye. It enhanced the National Baijiu Quality Supervision and Inspection Centerand the Academician Workstation set in the company, while at the same time establishing an international research centeron liquor, a national institution—the only of its kind—for the domestic food fermentation industry. It also made major pro-duction breakthroughs with the smart Baijiu test base. Wuliangye, the only Baijiu enterprise to have won the China QualityAward (the top award for quality management in China) three times, carried out product lifecycle management at every
stage of the process, from seed to liquor, for complete traceability. We want to make sure our product responds to con-sumers' demand for better living.In 2020, Wuliangye shared growth with investors. We made an e?ort to regulate corporate governance and investorrelation (IR) management systems to better protect investor’s rights and interests. We have adopted a cash-based divi-dend policy that has run stably and continuously since going public in 1998. The aggregate cash dividend paid amountedto RMB 39.6 billion, 10 times the capital that was raised by going public. Over the past 3 years, the cash dividend paidevery year accounted for roughly 50% of the net revenue of that year, with its total amount increasing year on year. Theamount of dividends paid in 2020 for the last year totaled RMB 8.54 billion, skyrocketing to a record high not surpassedsince listed in 1998.In 2020, Wuliangye put employees high on its priorities, increasing their benets and work satisfaction. We see
corporate value and employees' personal value as equally important, and have enhanced compensation and benets, aswell as business growth in parallel. By adopting the employee stock ownership plan (ESOP) , we shared sta? benets gen-erated through reform and built up a community based on a shared future for our employees. We implemented the CareProgram by setting up a solidarity response fund and assistance system that targeted both regular and accidental cases toimprove employee welfare. In addition, a wide range of services were o?ered to facilitate the work-life balance.In 2020, Wuliangye kept pursuing green development and built sustainable industrial zones. Adhering to the"green mountain and lucid water are invaluable assets" development philosophy, we pressed ahead with both businessgrowth and environmental protection. We carried out a number of major ecological conservation projects, such as buildingwetland parks and upgrading wastewater treatment systems, which made us one of the rst circular economy pilot entitiesrated by six national departments and a national green plant.In 2020, Wuliangye continued to invest in public good and promoted a harmonious corporate-society relation-ships. Following the idea of company-based investment, professional operation and shared benefits for poor people,
Wuliangye developed ve long-term poverty alleviation mechanisms, yielding remarkable results: all ve of its paired vil-lages got thoroughly alleviated poverty and three bases of poverty elimination through industrial development were ratedas benchmark projects. Therefore, we were rated as one of the Top 50 Enterprises on Targeted Poverty Alleviation by thePoverty Alleviation O?ce of the State Council. Facing the COVID-19 epidemic, Wuliangye without hesitation extended ahelping hand to Wuhan, Hubei Province, and mobilized all resources to support virus containment across China. In addi-tion to donating RMB 92 million in cash and a large number of materials for epidemic control, it set up a joint control mech-anism and reopened for production as one of the rst liquor companies in China with sta? size and compensation intact.Staying true to our original aspirations and continuing to march forward. Looking ahead to the second centennial goal (tobuild a modern socialist country that is prosperous, strong, democratic, culturally advanced, and harmonious by 2049, thecentenary of the People's Republic of China) , when we have realized the rst goal (to build a moderately prosperous so-ciety in all respects by 2021, the CPC's centenary) , we, the leaders of China's Baijiu industry, will act on the new develop-ment philosophy, build on the new development paradigm in the new era, and take the lead in building a world-class Baijiuindustrial cluster. Following the general principle of pursuing progress while ensuring stability, we aim to become rst in allareas and consider development as the priority, innovation as the primary driver, and talent as our foremost resource. Tar-geted at meeting the needs of consumption upgrading, it will further drive development through innovation and transforma-tions that are enabled by supply-side reform directed at the vision of a green and innovative world-class company. In 2021,we will continue to develop and deliver as a major industrial player to ensure performance is stably kept within a healthyrange.
Deputy Party Secretary, Deputy Chairman and General Manager of Wuliangye Group,
Deputy Party Secretary and Chairman of Wuliangye Yibin Co., Ltd.
Party Secretary and Chairman of Wuliangye Group,Party Secretary and Director of Wuliangye Yibin Co., Ltd.
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020
Wuliangye positions its brand as "Strong Flavor Spirits of Great Power, Liquor Magnate of China" and has developed brandrecognition as China's best-known Baijiu. Wuliangye continues to explore its profound brand values of natural essence,national spirit, and global presence, developing its 1+3 brand strategy of Wuliangye main brand and four major productsnationwide of series baijiu. By featuring core advantages in fermentation pits, techniques, and formulas, it reinforced abrand image characterized by its clear hierarchy, distinguished values, and orderly pricing. In 2020, the Wuliangye brandobtained the 3rd position in 2020 Top 100 Most Valuable Chinese Brands, the 19
thin the China's Most Valuable 500Brands, the
th in Top 500 Asia Brands, the 272
th in the World's 500 Most Influential Brands, and 79
th
in BrandFinance Global 500 2020.
Eight old liquor production workshops jointly established the Yibin Daqu Liquor Production IndustrialJoint Venture. Then, the venture changed its name to Yibin No. 24 Liquor Distillery of Southern SichuanState-Owned Monopoly Company.
In the joint-stock reform, Sichuan Yibin Wuliangye Distillery restructured part of assets into Yib-in Wuliangye Co., Ltd. which went public on the Shenzhen Stock Exchange under the ticker symbol000858.
Its name was changed to Yibin Sichuan State-Owned Local Distillery.The name was changed to Sichuan Yibin Wuliangye Distillery.
Wuliangye's market capitalization exceeded RMB 1 trillion.
The 14th Five-Year-Plan period provides strategic opportunities for Wuliangye to start a new round of high-quality devel-opment. In the new era, we will follow the general principle of pursuing progress while ensuring stability, act on the newdevelopment philosophy and help build on the new development paradigm. We will deepen supply-side structural reformsand take the lead in building a world-class Baijiu industrial cluster. By forging benchmarks in terms of business size, qual-ity management, digital transformation, ecological development, and corporate culture building, it will drive developmentthrough innovation and transformation, consolidate its role as a leading Chinese strong-avor Baijiu producer, and movetowards its vision of a green and innovative world-class company.
Company ProfileA glorious history written by Baijiu
Leveraging brand perception and staying true to the centuries-old unwavering aspirations
Embarking on a new journey for a brighter future
About Wuliangye
1952
1998
19591964
2020
Awards
Operation and Governance
Social Responsibilities
OrganizersHonors and AwardsThe CPC Sichuan Provincial
Committee
Outstanding Community-Level CPC Organization in SichuanChina Association for QualityARE-QE AwardSichuan Provincial People's
Government
Sichuan Tianfu Quality AwardChina Association for Quality
Inspection
Top 100 China Quality Benchmark CompaniesChina Institute of Internal AuditsChina Exemplary Group of Internal Audits 2017-2019
Securities Times
Top 100 Chinese Companies listed on Main Board and Top 10 Management Teams
of Companies listed on Main BoardChina Securities Journal2019 Golden Bull of Investment Value
www.p5w.netBest New Media Operator of the 2019 Investor Relations Golden Awards
OrganizersHonors and AwardsChina Charity FederationNational Charity Enterprise AwardCentral Civilization CommitteeChina Civilized Organizationhttp://www.chinanationalbrand.org.
cn/
Excellent Cases of Global Combat Against COVID-19The CPC Sichuan Provincial Com-mittee and Sichuan Provincial Peo-
ple's Government
Exemplary Group in Fighting COVID-19 in SichuanLeading Sichuan Provincial Poverty
Alleviation Group
Award of Excellence for the Group's Poverty Alleviation in Sichuanwww.people.com.cn2019 People's Craftsmanship Brand AwardWuhan Charity FederationBadge of Outstanding Contributions to Fighting COVID-19
Southern Weekly2020 Outstanding Corporate Social Responsibility Report
Wuliangye Yibin Co., Ltd.
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020
zWuliangye held party lectures dedicated to improving Party conduct, upholdingintegrity, and combating corruption.
zThe CPC Wuliangye Yibin Committee (CPC Wuliangye Committee) held a con-ference to celebrate the 99th anniversary of the founding of the CPC, whichwas also the July First Awarding event.
zWuliangye held the Craftsmen Incubator 2019 Awards Ceremony and 2020Badge-Pinning Ceremony.
zWuliangye also hosted the 24th 1218 Annual Convention on Achieving SharedGrowth through Discussion and Collaboration.
zSichuan Wuliangye New Retail Management Co., Ltd. was inaugurated in Chengdu, endors-ing our commitment to exploring digital channels.
zWuliangye and Sina would implement strategic cooperation on promoting digital Baijiu au-thentication certicates by using blockchain technology.
zPress conferences were held to promote classic Wuliang Baijiu products in Shanghai,Chengdu, and Guangzhou.
zThe Famous Baijiu Collection Committee of China Alcoholic Drinks Association held a spe-cial session dedicated to Wuliangye under the Old Baijiu in Household collection event.
zWuliangye held the 24th Liquor Sage Ceremony.
Highlights of 2020
Shared Consul-tations and Mu-tual Exchanges
Suggestions for
Development
A state-owned
enterprise'sresponsibility inghting against
COVID-19
EnhancedFoundation for
AcceleratedDevelopment
Heritage Lev-eraged for the
Future
zLi Shuguang, deputy of the 13th National People's Congress (NPC) , Chair-man of Wuliangye Group and Party Secretary of Yibin Wuliangye, partici-pated in the 3rd Session of the 13th NPC.
zLi Shuguang, deputy to the 13th Sichuan Provincial People's Congress(SPPC) , Chairman of Wuliangye Group and Party Secretary of YibinWuliangye, participated in the 3rd Session of the 13th SPPC.
zLi Shuguang, Chairman of Wuliangye Group and Party Secretary of YibinWuliangye, participated in the entrepreneur symposium on formulating Si-chuan's 14th Five-Year Plan.
zWuliangye held a meeting to promote reopening production, and managersconveyed their care and wishes for frontline workers in person.
zLi Shuguang, Chairman of Wuliangye Group and Party Secretary of Yib-in Wuliangye, was present at the campaign which was themed "Sichuan'sState-Owned Enterprises' Fight Against COVID-19."
zWuliangye inked cooperation agreements on two future-oriented projects with theWest China Hospital of Sichuan University, Dujiangyan City, and the Chengdu Hi-Tech Industrial Development Zone. One was to build an international medical andaging care center at Dujiangyan together with West China Hospital, and the otherwas to build a new economic center in Chengdu Hi-Tech Industrial DevelopmentZone.
zWuliangye established a strategic partnership with Sichuan Provincial InvestmentGroup Co., Ltd. in areas of industry, capital, and supply chain. By deepeningstrategic and industrial collaboration, both sides would set a good example in ad-vancing Sichuan's development by promoting 5+1 modern industries.
zWuliangye reached strategic cooperation agreements with China Energy Conser-vation and Environmental Protection Group, Sino Light Group, and Sichuan En-ergy Investment. They would cooperate in areas of Baijiu industrial R&D, smartequipment manufacturing, energy conservation and environmental protection onmultiple levels in line with sustainable and green development philosophies to-wards high-quality development.
zWuliangye and China Citic Bank became strategic partners for a longer term anda wider range, marking a new start for their collaboration.
zLi Shuguang, Chairman of Wuliangye Group and Party Secretary of WuliangyeYibin Co., Ltd. (Yibin Wuliangye) , attended the 2020 China's Baijiu Capital(Suqian) Culture and Tourism Festival and Guyu Forum, the 9th Chinese BaijiuTop Summit and Chinese Enterprise Reform 50 Forum.
zAs a core supporting enterprise, Wuliangye shone at the 3rd China InternationalImport Expo, displaying the unique charm of Chinese Baijiu and its rich cultureto international buyers. With Baijiu as the medium, it enhanced opening up andcooperation with overseas companies and facilitated the building of new develop-ment patterns with solid actions.
zWuliangye was present at the 2020 APEC China CEO Forum in the capacity ofstrategic partner, and Li Shuguang, Chairman of Wuliangye Group and PartySecretary of Yibin Wuliangye, was elected Vice Chairman of APEC China Busi-ness Council Digital Economy Committee.
zWuliangye assisted the China Alcoholic Drinks Association in hosting the 2020National Reasonable Drinking Awareness Week. While o?ering high-quality alco-holic drinks to consumers, it helped shape awareness of healthy and safe drink-ing habits.
zWuliangye participated in the China-ASEAN Expo to boost digital economic co-operation and innovation.
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020
Wuliangye has cemented its foundation for healthy and stable development by en-hancing properties in the ve areas of culture, techniques, old liquor, operations,and quality. Despite the severe challenges in 2020, Wuliangye stuck to its businessstrategies, making remarkable achievements in COVID-19 control and businessgrowth, which in turn made itself, a Baijiu producer, part of the grand course of thenational rejuvenation and a contributor to a prosperous society.
Party BuildingCorporate GovernanceRisk Management and ComplianceCorporate CultureCorporate Social Responsibility Management
Five excellent charactersare the foundation of ourdevelopment
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020Party BuildingThe year 2020 was the nal year of the 13th Five-Year Plan period and the last year for building a moderately prosperoussociety in all respects. More importantly, it was the starting line for Wuliangye to make new progresses in the post-100-billion era. To press ahead with business operations and social responsibility in an orderly, coordinated manner, the CPCWuliangye Committee gave full play to the Party's leading role by embedding its navigation throughout corporate gover-nance. By leading and uniting all Party members, managers, and sta? to tackle di?culties, we set up an e?ective and sta-ble structure to secure high-quality development.
The CPC Wuliangye Committee strictly followed general principles on Party establishment of state-owned enterprises(SOE) in the new era and implemented the Party's organizational line. By carrying out the Pyramid Project, it reinforcedthe foundation for reform and development, as well as strategic planning.
zThe leadership was enhanced by the dual responsibilities requirement (to be responsible forboth Party and business work) and included members of CPC Wuliangye Committee in man-agement or the board, and vice versa.
zWe implemented a prerequisite for management and the board in making major decisionsto have issues discussed and studied rst by the Party committee. The Rules of Procedurefor Party Committee was amended. In addition, it set up a supervision mechanism for majortasks whose progresses would be reected in special reports.
zStrengthening Party Building The Company revised the Party Building Contact Point Reg-ulation for Leaders of Wuliangye Group and demanded leaders of all levels to sign letters ofcommitment on Party building to enhance work in this regard.
zPromotion System The Company introduced four new policies including Opinions on En-hancing Leadership and Talent Development (Trial) to make systems on selecting, training,appointing, managing, and evaluating leaders better.
zParty Member-Led Key Projects The Company introduced the new Regulations on Manag-ing Party Member-led Key Project to strengthen the Company's direction and management inthis regard.
zParty Committee Involved in Decision-Making The Rules of Procedure for Party Commit-tee was amended to clarify issues to be studied and decided by the Party committee.
zMeasures: We developed new working measures for Party branches to show their achieve-ments, and published Guidelines on Standardization of Community-level Party OrganizationConstruction in Wuliangye Group and Yibin Wuliangye to enhance their capabilities in thisregard.
zRoutine Management: We guided 20 community-level Party organizations on election andco-opting members. A total of 140 employees became Party members this year.
zParty Building Culture: We developed demonstration and education sites for Party buildingin the form of courtyards, scenarios, and exhibition rooms.
zRectication: We held a meeting on rectifying 43 problems of ve areas identied in inspec-tion, where lists of problems, tasks, and responsible departments were made and rectica-tion measures and deadlines determined, to ensure problems could be actually fixed andremoved from the list as scheduled.
The Foundation of the Party Led the Development of Wuliangye
Improvingthe Leader-ship System
Reinforcing
PartyBuildingSystems
Promote Party
BuildingPractices
3 perspectives to sharpen the top
zOne priority: We published Guidelines on Standardization of Community-level Party Organi-zation Construction in Wuliangye Group and Yibin Wuliangye.
zOne focus: We included promoting standard Party building among community-level Party or-ganizations into our Party building assessment items.
zOne method: We appointed people to work with community-level Party organizations andgave directions on the timely removal of obstacles to Party building.
Five fundamentals to cementing thefoundation
zFundamental lecture sessions wereprovided to all sta?.
zFundamental Party building paidattention to standardized operations.
zFundamental Party organizationsvalued CPC member admission.
zFundamental rules were rigorouslyimplemented.
zFundamental supportive measureswere put into practice.
Four skills for enhancing the body
zWe made Party building more e?ective viaeducational and promotional activities
zWe created highlights by strengtheningdemonstrations and educational sites
zWe promoted integrated develop-ment with new methods
zWe made work easier with the Inter-net +
Pyramid Project to Enhance Standard Party Building of
Community-Level Party Branches
Li Shuguang, Party Secretary and Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye,
gave a Party lecture.
Building Party's Organization
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SOCIAL RESPONSIBILITY REPORT2020
In 2020, the CPC Wuliangye Committee held a series of activities on learning theories to enhance Party members' theo-retical and comprehensive competences, which would add much to the e?cacy of governance.
In 2020, the CPC Wuliangye Committee strictly adhered to Xi Jinping Thought on Socialism with Chinese Characteris-tics for a New Era and the general principles of Party building in the new era. By giving full play to the committee's role ofsteering development, general management and securing implementation, it led to high-quality development through ef-fective Party building and delivered remarkable achievements in virus containment and business growth.
Party Members Led by Example
D:
DoImplement the dual responsibilities requirement inParty building and promote workshops and groupsto carry out Party's new theories in actual work.Carry out Party member-led key projects regularly.In 2020, a total of 158 scientific and technologicalachievements were made and applied thanks to thisproject, boosting business performance.
A:
ActEnhance results while reflecting on problems.Leverage the evaluation navigating function byincreasing the weight of Party building evaluationto 5%. Solve problems identified in the next PD-CA-Cycle.
P:
PlanFocusing on core tasks and annual targets, devel-oping annual Party building "must-dos," and ensur-ing that Party building and business operation areplanned, deployed, carried out, and evaluated inparallel.
C:
CheckEmploy a self-check + check by Party organizationsmodel to make the deep integration of Party build-ing and business operation compulsory, rather thansuggested.PDCAPDCA-Cycle
Manage-ment
PDCA-Cycle of Party Building for Higher Business Growth
Zou Tao, Executive Deputy General Manager of Yibin Wuliangye, delivered a Party lecture to Party members of
NongXiang Series Baijiu company.
The CPC Wuliangye Com-mittee held nine party com-mittee group theoreticalstudy sessions.
Two Wuliangye Lectures wereheld that invited university pro-fessors to share insights.
Wuliangye Weekly has published50 issues, Wuliangye News hasreleased 85 episodes, and the of-ficial WeChat account, "CivilizedWuliangye" , has pushed 210 arti-cles.
With the implementation ofbuilding and assessing an in-ternal Culture Group, altogether40 groups and 73 individualswere honored.
With a keen eye on employeethoughts and views, consultationwas provided for 151 person times,with 524 reports received from low-er-level departments.
Zeng Congqin, Deputy Party Secretary and Chairman of Yibin Wuliangye, hosted the July First Awarding event.
1314
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020CasesThe CPC Wuliangye Committee Party School launched a dedicated training program on Party consciousness andspirit of the 5th plenary session of the 19th CPC Central Committee from November 30 to December 3 to enhancethe study of organizational spirit. The training was attended by 49 secretaries of community-level Party organizationsand Party workers. During the training, attendees visited a museum on the Chinese Revolution, walked on a fractionof the Long March's route, listed to the report Explaining the Spirit of the 5th Plenary Session of the 19th CPC CentralCommittee, and had a discussion under the theme of How to Amplify the Long March Spirit in the New Era, which re-inforced their Party consciousness and theoretical foundation.
Training Program on Party Consciousness and Spirit of the 5th Plenary Session of the 19th CPC Central Committee
by the Party School of CPC Wuliangye Committee
Training Program on Party Consciousness and Spirit of the 5th Plenary Session of the 19th CPC CentralCommittee by the CPC Wuliangye Committee Party School
Cases
Cases
On November 27th, the CPC Wuliangye Committee held the final 3rd WeChat-based Party Lecture Competition.There were 57 lecturers from 44 community-level Party organizations entering the competition who fell into variety ofcategories: Party branch secretaries, Party workers, frontline sta?, and scientic researchers. The competition usedlive streaming and online voting for the rst time. With a total of roughly 35,000 views, it received nearly 70,000 e?ec-tive votes, with the voting page visited for over 100,000 times, making the event more accessible and inuential.
On July 28, the Party School of CPC Wuliangye Committee convened a special training session at the lecture hall tolearn about the exemplary Six Old Men from Babusha Forest Nursery and their sons and grandsons who have de-voted their whole lives to desertication control and forestation. Over 200 people attended the training, including rep-resentatives of dealers, managers and workers, secretaries of community-level Party organizations, and employeerepresentatives. All who attended were deeply moved by our devotion and commitment, with many commenting thatwe, the people of Wuliangye, would learn from these leading examples and make utmost contributions to our compa-ny with a strong sense of belief and responsibility, making our dreams come true in the new era.
A group photo of the 3rd WeChat-based Party Lecture Competition
The 3rd WeChat-based Party Lecture Competition
Presentation on Devotion of Six Old Men from Babusha Forest Nursery and Their Children to Forestation
Presentation on the Devotion of Six Old Men from Babusha Forest Nursery and Their Children to Forestation by the
CPC Wuliangye Committee Party School
Corporate Governance
Based on its 13th Five-Year Plan and business performance goals of 2020, Wuliangye improved its governance structureand regulations as well as internal risk control to enhance management competence and e?ectiveness, and better supportoverall development. At the same time, it strengthened risk management and anti-corruption e?orts, which protected in-vestor rights and interests and helped to yield higher growth and market capitalization.
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SOCIAL RESPONSIBILITY REPORT2020
-
General Meeting of ShareholdersSupervisory Board
Performance of duties by the compre-hensive budget management committee.Remuneration and Appraisal CommitteeNomination CommitteeAudit CommitteeStrategy CommitteeBoard of DirectorsManagers
Board o?ceO?ce of the Supervisory BoardAdministration O?ce
Party-Community Work DepartmentStrategic Development DepartmentFinancial Management Department
Audit DepartmentDiscipline Inspection and Supervision Department
Human Resource DepartmentAssets Management DepartmentWork Safety Supervision DepartmentSecurity DepartmentFamily Planning and Logistics Service DepartmentInvestment and Technology Innovation DepartmentEnergy and Environmental Protection Management Department
International Cooperation Department
Material Procurement Center
Quality Test CenterTechnology Research Center
Sta? Education and Training CenterInformation Management CenterWuliangye Sta? Management CenterProduction Management Department
Quality Management DepartmentMarket Management DepartmentExclusive Store Management DepartmentWuliangye Brand Business DepartmentCorporate Culture Research and Promotion Center
Design CenterLiquor Development Center
21 marketing regions / 60 marketing centers
Liquor production workshop (10)
Auxiliary workshop (6)Sichuan Yibin Wuliangye Winery Co., Ltd.Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd.Yibin Wuliangye Liquor Sales Co., Ltd.Yibin Wuliang Nongxiang Co., Ltd.Sichuan Yibin Wuliangye Environmental Protection Co., Ltd.Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd.Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd.Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd.
Yibin Wuliangye Creart Co., Ltd.Sichuan Yibin Plastic Packaging Materials Company LimitedWuliangye Dashijie (Beijing) Trading Co., Ltd.
Sichuan Yibin Global Group Shenzhou Packaging Technologies Co., Ltd.Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd.
Yibin Cuipingshan Liquor Co., Ltd.Yibin Changjiangyuan Liquor Co., Ltd.
Yibin Zhenwushan Liquor Co., Ltd.
Yibin Jiangjiu Liquor Co., Ltd.
Yibin Shiji Liquor Co., Ltd.Handan Yongbufenli Co., Ltd.WUGUCHUN JIU YE CO., HENAN. China
Sichuan Wuliangye New Retail Management Co., Ltd.
Sichuan Yibin Push Group 3D Co., Ltd.
Sichuan Wuliangye Culture Tourism Development Co., Ltd.
In 2020, Wuliangye continued to improve its organizational structure and governance institution to ensure that the Boardof Directors and the Supervisory Board exercise their duties according to the law and to boost Wuliangye's development.Meanwhile, the Company took active actions to ensure the accuracy, completeness and authenticity of information dis-closed to safeguard investor rights and interests.
Standardize Governance for stable, long-term development
Wuliangye Organizational structure
Chart
1718
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SOCIAL RESPONSIBILITY REPORT2020
In 2020, the Board of Directors held 13 meetings and deliberated on 42 bills.To be more specic, there were4 on-site meetings where 27 bills were deliberated on and 9 meetings held informs of le circulation and telecommunication where15 bills were reviewed.
In 2020, a total of4 meetings wereheld by the Board of Supervisors,during which21 bills were re-
viewed.To be more specic, there were
on-site meetings where18 billswere deliberated on and2 meetingsheld in the form of le circulation andtelecommunication, where3 billswere reviewed.
CPC Wuliangye Committee
Board of Directors
In 2020, a total of 34 meetings were convened by CPC Wuliangye Committee, reviewing 152 issues.
In 2020, a total of 12senior man-agement meetings were held, whichserved to review41 bills.
A total of100 people, includ-ing directors, supervisors, seniormanagers and securities ana-lysts, attended the meeting, whichhad an online participation of over120,000 unique visits, andduring which14 bills were re-viewed and approved.
Senior Management Meetings
2019 General Meeting of Share-holders
Supervisory Board
1920
Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020Cases
Cases
The 3rd Session of the 13th NPC was held from May 22th to 28th inBeijing. Li Shuguang, deputy to the 13th National People's Congress(NPC) , Chairman of Wuliangye Group and Party Secretary of YibinWuliangye, exercised his duty and participated in the meeting. Cen-tering on the meeting's theme, he thought about how to better per-form SOE responsibilities based on Wuliangye's conditions to makebigger contributions to the country and the Chinese people.
On June 5, the CPC Wuliangye Committee held a meeting to study and implement principles of President Xi Jinping's importantspeeches on the 3rd session of the 13 NPC and the third session of the 13th National Committee of the Chinese People's PoliticalConsultative Conference (CPPCC) . Li Shuguang, deputy to the 13th National People's Congress (NPC) , Chairman of WuliangyeGroup and Party Secretary of Yibin Wuliangye, hosted and addressed the meeting. All senior managers and heads of departmentsattended the meeting.The year 2020 had special meaning in that it strategic progresses had been made in containing COVID-19, and epidemic controland socioeconomic development progressed forward in a coordinated way. The NPC and CPPCC annual sessions held this yearwere of extraordinary importance and demonstrated remarkable achievements. Wuliangye carried out the requests of Peng Qing-hua, Secretary of the CPC Sichuan Provincial Committee, on executing the spirit of the two sessions by faithfully learning and pro-moting their guidelines. Integrating positive and inspired attitudes with responsible and pragmatic actions, e?orts were made to fullyimplement the spirit of and decisions made during the two sessions at Wuliangye.
"As a leading Baijiu producer, Wuliangye will continue to acceleratehigh-quality development while adhering to the general requirementof pursuing progress at the same time as maintaining stability. We willreinforce major business sectors, improve diversied development,and enhance platform building to make greater contributions that en-sure stability on six fronts (employment, the nancial sector, foreigntrade, foreign investment, domestic investment, and expectations)and maintain security in six areas (job security, basic living needs,operations of market entities, food and energy, stable industrial andsupply chains, and the normal functioning of primary-level govern-ments) . We intend to deliver in regard to both COVID-19 control andbusiness development. "--Li Shuguang, deputy to the 13th National People's Congress
Li Shuguang, deputy to the 13th National People's Congress (NPC) , Chairman of Wuliangye Group andParty Secretary of Yibin Wuliangye, participated in the 3rd Session of the 13th NPC.
Meetings by the CPC Wuliangye Committee to Study and Implement the Spirit of the NPC and CPPCC An-nual Sessions
To promote standard board operation, senior management, including all directors and supervisors, was organized to at-tend training programs provided by regulation authorities, laying foundation for standardized governance and high-quality,sustainable development for the future of the company.
Empowering Senior Management to Increase GovernancePerformance
Participating in and Holding Training Programs onthe Standardized Operation of Listed Companies
We prepared training programs for controlling shareholders, all directors, supervisors, senior manag-ers, and all department heads, where vice chairpersons of the Commercial Law Research Instituteand Securities Law Institute, China Law Society, were invited to give lectures on the new SecuritiesLaw.The Sichuan Association for Public Companies held an online training program titled, "Enhancing theQuality of Disclosed Information and Performing the Duties of Key Persons" to the Company's actualcontrollers, requiring the participation of shareholders, directors and supervisors, and senior manag-ers.
We held the 2020 Standardized Building of Boards of Sichuan SOEs Training Series together withthe State-Owned Assets Supervision and Administration Commission of Sichuan Province. The rsttraining was themed, "Corporate Governance and Board Building."Wuliangye's actual controllers, chairmen, nancial directors, and board secretaries attended the vid-eo conference of supervision on fund occupation and illegal guarantee of public companies at Sich-uan, learning about policies in this regard.We held the 2020 Standardized Building of Boards of Sichuan SOEs Training Series together withthe State-Owned Assets Supervision and Administration Commission of Sichuan Province. The sec-ond class was themed, "SOE Reform and Board Building."Sichuan Securities Regulatory Bureau organized Wuliangye's actual controllers, controlling share-holders, directors, supervisors, and senior managers to learn about the State Council Opinions onEnhancing Quality of Public Companies policy.We held the 2020 Standardized Building of Boards of Sichuan SOEs Training Series together withthe State-Owned Assets Supervision and Administration Commission of Sichuan Province. The thirdclass was themed, "Work and Services of the O?ce of the Board."
April 24September 17
November 10November 17November 18November 27December 4
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Risk Management and Compliance
In line with related laws and regulations, Wuliangye established and improved its internal control and risk managementsystem on basis of the business's main risk characteristics.
Group photo of attendees of the training session on SOE reform and board building
Promoting anti-corruption to ensure healthy operationsWuliangye set up a department that was responsible for commercial ethics and tackling corruption, launching integri-ty-themed vocational training sessions according to relevant regulations to boost anti-corruption actions and the compa-ny's sound development.
Anti-Corruption System
zA leading group on building Party and business work integrity headed by Li Shuguang, Chairman of Wuliangye Groupand Party Secretary of Yibin Wuliangye.
zA leading group on e?ciency supervision headed by Li Shuguang, Chairman of Wuliangye Group and Party Secretaryof Yibin Wuliangye.
Organizational Structure
zWorking systems: Regulations on Executing Discipline Inspection and Supervision; Regulations on Discipline Inspec-tors and Supervisors at Work
zImplementation measures: Accountability Regulations on Violations of Laws and Rules and Wrongdoings; WuliangyeGroup's Interim Measures on Implementing Rules on Clean Conduct of SOE Leaders; Measures on ImplementingParty Committee's Primary Responsibilities and Disciplining the Commission's Supervision Responsibilities TowardImproving Party Conduct (Trial) ; E?ciency Supervision and Management Measures
Management System
zFoundation of Promotional Activities: We formed a promotion plan consisting of monthly activities and quarter-ly-themed events, and operated the o?cial WeChat Account "Clean Wuliangye" as well as the Wuliangye DisciplineInspection and Supervision Information Promotion Platform.
zEducation on Integrity: Centering on the theme of integrity, we held a variety of events such as lectures and essaycompetitions, created cartoon works, distributed stationery, and created videos to warn our employees against corrup-tion, amidst the backdrop of violations happening around us.
zSpecial Inspection: We launched rounds of inspection on the implementation of the Party's eight-point frugality codeand redressment of o?cials with undesirable conduct.
Management Activities
Wei Hongying, Secretary of Committee for Discipline Inspection of Yibin Wuliangye, led the delegation to visit the Yibin
Anti-corruption Educational Center and reviewed the pledges he made when joining the CPC.
We held over 20 lectures on building a clean company, which were listened to formore than 8,000 unique times.We shot the lm Wrong Path to warn against corruption and organized all sta? towatch it. It was also the rst internal movie of its kind made by an SOE at Yibin.We initiated a number of activities to promote anti-corruption, including inviting artiststo contribute with paintings, calligraphy, videos, and photos. In addition, we rolled outan online contest on integrity building, which attracted over 15,000 participants.The culture of integrity culture that the company built has obtained a Grand Prizeof Excellent Chinese Corporate Culture and an Award Nomination for the SecondChina Integrity and Cleanness Innovation Award.
Wuliangye's Anti-Corruption Actions and Performance in 2020
Anti-Cor-ruptionActivities
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SOCIAL RESPONSIBILITY REPORT2020Anti-CorruptionAchievements in 2020
zWe addressed a total of 131 clues to various kinds of problems.zWe handled 205 persons in four forms of oversight over discipline compliance (criticism and self-criticism likeoral or written warnings and regulatory talks, minor Party and administrative disciplinary actions, severe Partyand administrative disciplinary actions, and severe violations of laws and discipline) :
191 persons receivedoral or written warnings, regulatory talks, letter inquiries, or reminders;10 persons received minor Party andadministrative disciplinary actions; and4 received severe punishment with their contracts being terminated. zWe responded effectively to 19 clues given by the inspection team formed by the CPC Yinbin Municipal Com-mittee, and issued administrative penalties on2 persons and organizational punishments on 15 persons.
Corporate Culture Empowers DevelopmentBuilding a strong corporate culture serves as the driver, the foundation, and beacon for healthy and sustainable growth.Wuliangye has always seen corporate culture building as an engine to boost corporate innovation and high-quality devel-opment.
Corporate CultureWuliangye improved its corporate culture based on its development to boost sustainable growth.
A total of RMB 168 million weresaved due to audits on project in-vestment and procurement.The investment audit software inde-pendently developed by Wuliangyeobtained a software copyright fromthe National Copyright Administra-tion.The Audit Department won theaward for China's Most ExemplaryInternal Audit Group 2017-2019.
The Audit Department audited key investment projects throughout thewhole process with focuses on project quality and commercial benets.Focusing on whether leaders performed their duties and operated busi-nesses in a sound and clean way, the Audit Department audited theireconomic accountability in major functional departments like the AssetsManagement Department.The Audit Department implemented various types of research on mate-rial operation, assessments on internal control, risk evaluations on the -nance company, audits on the annual information disclosure report, andrectications for problems detected in previous audits.The Audit Department endeavored to improve the attitudes and prin-ciples of auditors, upgrade the internal system, apply new digital tools,develop competencies through completing actual tasks rather thansolely training and sharing experiences and practices to enhance Partyconduct.
Wuliangye's Internal Audit Performance in 2020
Risk Control Supervision System
We set up a RiskControl Commit-tee comprising ofseveral profes-sional teams forareas like finan-cial managementand assets man-agement.
All teams kept re-cords of how theyperformed dutieson risk control ona quarterly basis.
With the au-thorization ofadministratingentities one levelinferior to them,they supervisedall subsidiariesto prevent andcontrol risk.
Every year, allteams wouldconduct target-ed inspectionsbased on risksreflected on theirrecords and givesuggestions onrectication.
An inter-depart-ment coordina-tion mechanismwas establishedto discuss andstudy plans toaddress potentialrisks.
Enhance Internal Control to Build Credibility
In 2020, Wuliangye continued to enhance internal audit and risk control.
Luo Wei, Deputy General Manager and Financial Director of Yibin Wuliangye, hosted a training meeting on fund risk control.
Improve
Organization
Structure
Keep Records ofSupervision Work
ExecuteManagement Levelby Level
Supervise Special
Targets
FormInterconnectedMechanisms
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Embedding Corporate Values into Culture
Enriching Corporate Culture Through Consistent BuildingEfforts
Centering on its corporate mission, Wuliangye has developed its core values and ideas to boost the implementation of itsspirits.
Wuliangye puts corporate culture building high on its agenda and sees exemplary cultural events as part of strategy. It lev-eraged the culture's role in shaping corporate spirit, enhancing competitiveness, and energizing development by organiz-ing studies on corporate culture building and exchange activities.Since the Ming Dy-nasty (1368-1644), those who madeliquor from variouskinds of grains haveenriched the distilla-tion culture generationby generation. Sincethe name Wuliangyewas first used in1909, its employeeshave made Wuliangyea household namethanks to the dili-gence, curiosity, andcourage that went intotheir production fordecades.
Wuliangye strove tomake corporate cul-ture better and stron-ger through introduc-ing new ideas in linewith the essentialprinciple that qualityis life, innovation issoul, management isfoundation, and per-formance is the core.
Targeted at enhanc-ing the Baijiu indus-try and becomingthe industry's leader,Wuliangye upholdsvalues of innovation,expansion, competi-tion and endeavorsto form a corporateculture system withWuliangye's charac-teristics.
Wuliangye Co., Ltd.was listed in 1998.Having espoused thecorporate spirit ofcontinual progress,Wuliangye's improve-ment of its culturestructure was widelyrecognized by itsemployees.
Facing new condi-tions and require-ments, Wuliangyecame up with asupportive culture fordevelopment, em-bodying its corporatespirit.
Before mid-1980smid-1980sLate 1980s-19981998-20172017 to present
Original
ideas
InspirationsBecoming
mature
Corporateculture con-
densed
Corporate
cultureimproved
Corporate Vision
Corporate MissionCore Value Ideas
Corporate SpiritsCore Values
WuliangyeCorporate Culture Struc-
ture
Stay true to originalaspirations and remainrealistic and pragmaticKeep making progressand innovation
Create outstanding experi-ences for customersCreate happiness for em-
ployeesCreate returns for investorsPromote our historic legacyCo-create a life of enjoyment
Wuliangye is committed to developing into agreen, innovative, world-leading enterprisethat keeps developing in a high-quality, sus-tainable, and rapid way.
Stay honest and quality-
orientedAdvocate craftsmanshipand inheritance-inspired
creation
Corporate Culture Building
Establishing a Corporate Culture Research and
Promotion CenterStarting from Wuliangye's heritage and productiontechniques, highlighting Wuliangye's advantagesand rarity, and forming a holistic strong-aroma val-ue promotion system centered on customers thattakes into consideration both the industry and mer-chants.
Expanding Corporate Culture Research ScopeWe issued an announcement on collecting 10 ma-jor research topics for the first time, clarified theculture research structure, and compiled BasicData of Wuliangye Ancient Fermentation Pit Site'sProtection Plan.We supported the Sichuan Provincial Cultural Rel-ics and Archeology Research Institute in exploringthe historic values of Wuliangye's site.
Formulating the 14th Five-Year Corporate Cul-
ture Development PlanWe formulated the medium and long-term goalsand plans for corporate culture building, and weare planning to formulate the Yibin Wuliangye Cor-porate Culture Building Plan (2021-2025) , whichspecies the positioning, targets, and directions inthis regard and promotes implementation of relatedmeasures.
Developing a Larger Culture Promotion MatrixWe published books like Poems, Liquor andWuliangye and started the magazine Digest onWuliangye Culture.We held8 activities and made 2 videos on thesubject of corporate culture trainingOur promotional activities reached employeesover5,000 unique times and dealers over200 unique times.
Development Stages ofWuliangye's Corporate Culture
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SOCIAL RESPONSIBILITY REPORT2020Corporate Social Responsibility ManagementWuliangye is committed to upholding corporate social responsibility (CSR) by building a social responsibility system withSOE characteristics that boosts implementation and creates value for all stakeholders, including customers, shareholders,and investors.
Starting with addressing the concerns of all stakeholders, Wuliangye creates value for them by establishing a CSR imple-mentation system.
Analysis of substantial issues plays a central, fundamental role in social responsibility management and disclosure. TheBoard decided on substantial issues for the current stage after reviewing the substantial issue library established on basisof hot issues, national policies, and industrial development in 2020.
Responsibility System Focuses on Concerns of All RelatedParties
Topic Analysis Responds to Sustainable Issues
Stakeholder Concerns
Impact on Sustainable Development
Matrix of Substantial Issues
Wuliangye introduced a long-term e?cient communication mechanism for stakeholders coupled with di?erent methods ofresponse based on various needs.Active Communication Ensures High-Quality Development
Create a happy lifefor customers
Create driversfor a harmonioussociety
Create a greenfuture
Create a healthyworking environmentfor employees
Create returnsfor investors
CSR Implementation
System
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| StakeholdersExpectations and NeedsMain Communication ChannelMeasures of ResponseShareholders and investorsReturn on investmentKnowledge of corporate operationGeneral Meeting of ShareholdersRegular release of reportsOnline communication with investorsEmails for investorsInformation disclosureGovernance complianceConvention of Shareholder General MeetingConsistent returns for shareholdersInvestor communication meetingGovernmentLawful operationTax complianceJob creationPolicy implementationHigh-quality developmentEcological conservationOpen to supervisionReportingConferencesCorporate-government cooperationImplementation of national strategiesCompliance with laws, regulations and policiesTimely tax payment in fullCreation of jobsEnhancement of compli-ance managementTargeted Poverty Allevia-tionSafe productionEmployeesProtection of legitimate rightsWelfare and promotional opportunitiesHealthy, safe working environmentRight of democratic participationLabor UnionCongress of workers and sta?More and better trainingClearer paths to promotionVocational health and safe-ty managementRegular convening of con-gress of workers and sta? ConsumersFood safetyGood products and servicesConsumer healthConsumer satisfaction surveyStricter quality managementUnprocessed grain base constructionInnovative R&D investmentImprovement in consumer communication channelsResponsible marketingCracking down on fake products and safeguarding legal interestsDealersFair competitionHonest operationSupportive policiesBusiness guidanceDealer conferencesFormulation of rules on marketing servicesTraining for dealersTraining for marketing personnelSuppliersOpen and fair procurementCredibility and integrityWin-win cooperationEntry platformDisclosure of procurement informationFair procurementHonoring contracts | StakeholdersExpectations and NeedsMain Communica-tion ChannelMeasures of ResponseCommunitySupport for public welfareCreation of jobs for communitiesCharity foundationsEncouragement of responsible drinkingRoll-out of volunteer and charity eventsTargeted Poverty AlleviationIndustryFair competitionPromotion of industrial progressPeer cooperationCross-border coopera-tionCollege-corporate cooperationEnhancement of R&D competenceParticipation in industrial eventsIndustry leaderEnvironmentGreen ecologyEnergy conservation and emissions reductionPollution treatmentEnvironmental risk eval-uationUpgrading of treatment facilities for gas emis-sions, wastewater, and solid wasteTreatment and recycling of gas emissions, wastewa-ter, and solid wasteReduction of carbon emissionsSource water protection | |
Wuliangye's Social Responsibility
Awards in 2020
2020 ExcellentResponsibility Report bySouthern Weekly
2019 SocialResponsibility Award byChina Securities Journal
Communicate with and Respond to Stakeholders
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Value ChainCustomer FirstInvestor RelationsEmployee Recruitment and DevelopmentIndustrial Progress
Wuliangye's network- collaboration with all parties
Wuliangye absorbs the essence of sorghum, rice, glutinous rice, wheat, andcorn in observance of the traditional Chinese "Doctrine of the Mean" wisdom.We join hands with stakeholders to make Baijiu a bridge for communicationand cooperation, demonstrating our strong sense of responsibility as an SOEand leading player in the Baijiu industry, and sharing our success with allstakeholders.
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SOCIAL RESPONSIBILITY REPORT2020Value Chain
Wuliangye has built a comprehensive industrial chain by propelling related industries, like e-commerce, logistics, andpackaging. Wuliangye performs its duties in the industrial chain through fair procurement, empowering dealers, and up-grading exclusive stores in cooperation with upstream and downstream players.
We aim to become more closely interactive with dealers according to Wuliangye's strategic aim of building a community ofshared interests. On one hand, we implement marketing policies and promote compliance; on the other, we enhance com-munication with dealers and empower them from a professional perspective.
WuliangyeMarketingManagementPolicies
Support Dealers'
Performance
Removing Disqualied Dealers and Supporting Competent Ones to Transform
By eliminating speculative dealers who frequently disturbed market order, Wuliangye made the dealer group healthierand promoted the transformation of major series liquor platform dealers. In doing so, Wuliangye enrolled a group ofnew regional dealers, uniformed on series liquor's management and the operation of both e-commerce and KA chan-nels, and also enhanced its capability for very detail-oriented marketing. These changes would lay a good foundationfor dealers to observe market order and improve their performance.Strengthen of Dealer Associations to Facilitate Corporate-Dealer Co-GovernanceWuliangye reactivated the 31 provincial Dealer Associations across China by allocating funds, promoting system con-struction, and the election of new leaders to boost the transformation from the previous Wuliangye-led governance tocorporate-dealer co-governance.
By visiting over 2,000 dealers in 2020, Wuliangye collected substantial feedback that fell into eight categories, includ-ing group purchase, supportive policies, brand and corporate culture, digitalization, planning, and logistics. All opin-ions and suggestions were properly handled either by giving prompt answers onsite or by having related departmentsdeal with them later.
Marketing supports dealers
CasesThe 24th Wuliangye 1218 Annual Convention on Achieving Shared Growth through Discussion and Collaborationwas launched at Yibin, the main o?ine venue, and live streamed in 28 online parallel venues across China, attendedby leaders and guests from multiple elds and over 1,800 dealers.
Zeng Congqin, Chairman of Yibin Wuliangye, hosted the 24th Wuliangye 1218 Annual Convention on Achieving
Shared Growth through Discussion and Collaboration
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, attended the 24th Wuliangye
1218 Annual Convention on Achieving Shared Growth through Discussion and Collaboration
The 24th Wuliangye 1218 Annual Convention on Achieving Shared Growth through Discussion and Collaboration
Key MeasurementsSupporting Dealers
Control in Two Areas and Acceleration
in One
Strict controls on deliveryStrict controls on productionAccelerate orders obtained through
group purchase
Losses in Three areas and supplements
in Three
Retail losses replenished by group
purchasesO?ine losses replenished by online salesLoss in old products replaced by new
products
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CasesOn February 11th, Wuliangye held the 2020 marketing training meeting online to increase the marketing team's re-sponse agility and service capabilities, and to help them deliver satisfactory performances during the special period.
Wuliangye held the 2020 marketing training meeting online
2020 Marketing Training Meeting (online)
CasesOn September 22, Wuliangye held the communication meeting for brand operators of Wuliang Nongxiang series Bai-jiu Co., Ltd. to sharing ideas with dealers on business transformations. Wuliangye said it would support leading deal-ers in areas of advertisement and end facility construction and consumer education, so as to enable them to improvetheir means and methods of transformation.
Communication Meeting for Brand Operators of Wuliang NongXiang Series Baijiu Co., Ltd.
Communication Meeting for Brand Operators of Wuliang NongXiang Series Baijiu CO.,LTD.
In 2020, Wuliangye accelerated its globalization by actively bringing the "distillation with craftsmanship" brand cultureabroad to actively implement the "Belt and Road" national strategy and the provincial decision that Sichuan's cuisine andliquor businesses shall enter the international market through a concerted e?ort. Wuliangye endeavored to build itself intoa leading Baijiu brand in overseas markets, and o?ered various kinds of campaigns, paving the way for its expansion.
Enhancing Global Presence
Inauguration ceremony of the Wuliangye Restaurant in Tokyo, Japan
Boost Channel-Based CooperationWe implemented the strategic cooperation agreement signed with Pernod Ricard to build sales networks in 8 countries,including Thailand, Singapore, and Malaysia. So far, our partners in the 3 countries have completed the import procedurefor Wuliangye series liquor and signed orders.Make the Brand More InuentialWuliangye amplied its brand international voice through participating in a number of events, including Bayern Munich'sfan gathering in Chengdu, the China International Import Expo in Shanghai, the Chinese Spring Festival Celebration Joint-ly Held by Overseas Chinese Societies in Japan, and the "Happy Spring Festival Show" by the Neckar River in Mannheim,Germany. Wuliangye employed di?erent promotion methods, such as creating advertisements for Ueno, Japan, recreatingthe design of major duty-free stores, as well as upgrading the European Taste Evaluation Center.Promoting the Development of the Wuliangye RestaurantThe Wuliangye Restaurant serves as the cover image for overseas branding. Seizing the strategic opportunity createdby jointly building the Belt and Road and pursuing high-quality development, Wuliangye is committed to exploring a newmodel for international cooperation: Chinese liquor + Chinese cuisine + product tasting + cultural exposure to bring Chi-nese Baijiu and traditional culture to more countries. On December 19, 2020, the Wuliangye Restaurant was inauguratedin Roppongi, Tokyo, Japan, and hosted the 4th Sichuan Cuisine Festival by livestreaming, which became a very popularevent with local people.
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Wuliangye implements a procurement management mechanism that involves execution, supervision, and evaluation, andstrives to ensure transparent procurement, timely settlement, and open purchase quotation to secure supplier rights andinterests, and sharpen its SOE image.
We formulated Regulations on Tender, recalibrated responsibilities and functions of procurement-re-lated departments, built a supplier pool through open selection, and standardized the purchase work-ow.We purchased packaging materials after inviting inquires 47 times. There were 65 suppliers participat-ing in the tender, with a winning bid amount of RMB 3.17 billion (tax-inclusive) .
In 2020, Wuliangye paid 23 settlements to packaging material suppliers, totaling RMB 4.342 billion(tax-excluded) .
Securing Suppliers' Rights and Interests by Honest Procurement
Transpar-ent Pro-curement
OpenTendering
TimelySettlement
Cases
Yang Qi, Deputy General Manager of Wuliangye Group, led a delegation to visit the Nanhai Industrial Zone, Foshan
City, Guangdong Province, and Foshan Pulasi Packaging Material Co., Ltd (Pulasi) . He also met with the Director of
Nanhai District, with whom he reached a consensus on cooperation in packaging between Pulasi and industrial en-
terprises in the Nanhai Industrial Zone.
Yang Qi, Deputy General Manager of Wuliangye Group, led a delegation to visit the Nanhai Industrial Zone in Fos-
han City, Guangdong Province
A visit to Nanhai Industrial Zone, Foshan City
Cases
On September 15, Wuliangye held the celebration of the 25th anniversary of Wuliangye exclusive stores and "Sep-tember 15" launching ceremony. It was announced that Wuliangye exclusive stores would celebrate their foundingceremony on September 15th every year, and awards would be given to outstanding stores, experienced store man-agers, and new managers—25 in each category.
Zeng Congqin, Chairman of Yibin Wuliangye, attended the 25th Anniversary Celebration for Wuliangye Exclusive
Stores and "September 15" Launching Ceremony
Celebration of the 25th Anniversary of Wuliangye Exclusive Stores and "September 15" Launch Ceremony
To create outstanding experiences for customers, Wuliangye sped up the upgrading of exclusive stores and introduction ofsmart retail systems to deliver more convenient service experiences.
Improving Marketing Team Structure and CapabilitiesWuliangye Knowledge Management Platform has provided online training to over 1,500 exclusive stores and morethan 6,000 store sta? since its inception in July.Improving Store Regulations and Information Management SystemsWe upgraded systems and manuals based on SOP management and added modules of CRM and new store evalua-tion and approval in our OA.
Create Marketing Examples with Themed CampaignsWe started the "Wuliangye's Charm" series on Douyin (a short video-sharing app whose international version is Tik-Tok) to tell stories about Wuliangye, which received nearly 30 million views.
Empowering exclusive stores by upgrading
Upgrading Measures
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SOCIAL RESPONSIBILITY REPORT2020Customer First
Wuliangye has expanded its front-end sales channels to provide services based on market and consumer needs, and isimproving its after-sales services to enhance the consumer experience.
We identied and addressed problems in customer services in a timely manner by holding consumer-oriented communica-tion conferences, satisfaction surveys, and follow-up interviews to increase satisfaction.
Promoting digitalization of exclusive storesWuliangye promoted the opening of Wuliangye Cloud Store, as well as integration and coordination between online and of-ine exclusive stores by incentivizing business entities and consumers to place advertisements in their WeChat Moments.By the end of 2020, there were 1,308 exclusive stores and 320,000 consumers registered on the Wuliangye Cloud Store,averaging 244 consumers per store.
Setting Up a Corporate-Level Group-Purchase Direct Selling System StructureIn 2020, Wuliangye inked group-purchase agreements with key accounts, including with the Industrial and CommercialBank of China, China Citic Bank, and Huawei. In this way, it built up a corporate-level group-purchase direct selling systemstructure covering banking, airlines, infrastructure, real estate, and hi-tech sectors, as well as a multi-level collaborationand communication model with liquor at the center.Deepening Marketing Digitalization of Wuliangye Series Liquor
We have enhanced marketing digitalization for Wuliangye's series of liquor. In 2020, over 400,000 digital end stores wereregistered and more than 1.7 million members were registered in total. This enabled data traceability from warehouse todelivery, and facilitated digital marketing management from Wuliangye and channel operators to stores and consumers,increasing the digital operation capacity for the series of liquor.
Introducing More Exclusive Stores and Dealers
In 2020, Wuliangye opened over 30 4th-generation exclusive stores and built up a network covering 95% of the cities inChina thanks to a total of more than 1500 exclusive stores, the largest number of which are in China. At the same time, itintroduced 17 excellent dealers and 34 group-purchase merchants to supplement its sales structure.
In 2020, Wuliangye built up a new series of channels to reach a wider range of consumers by digitalizing exclusive storesand developing group-purchase direct selling systems.
Strengthening Consumer Brand Awareness by ExpandingChannels
Improving the consumer experience with better services
Communication eventWe held a number of DTC (direct to consumer) marketing campaigns with the theme of celebrating the ChineseSpring Festival, in order to improve the consumer experience. By launching press conferences of Wuliangye'sclassic products at Shanghai, Chengdu, and Guangzhou, we interacted with key customers more closely.Jianzhuang, Wuliang Chun (Rich Flavor) , and Wuliang Tequ, the three strategic brands targeting the Chinesemarket, were fully upgraded. We held nearly 60 conferences to share their prospects, such as the JianzhuangWealth Brieng and Wuliang Chun (Rich Flavor) Upgrading Talk.
Building the Wuliangye Culture Experience StoreWe launched the Wuliangye Culture Experience Store in Tianfu Square, Chengdu, a landmark that supportscultural promotion, branding, product tasting, training, and group purchasing. It was widely acknowledged byconsumers.Customer Satisfaction SurveyAfter collecting consumer feedbacks from multiple channels, we formulated detailed response measures andfully implemented them.
CasesTo adapt to new trends of increased consumption standards, diversify high-end Baijiu products, and meet variousconsumer needs, Wuliangye presented Classic Wuliangye and held three launch events in Shanghai, Chengdu, andGuangzhou. Classic Wuliangye is inspired by the Plum-Vase-Bottled Wuliangye (also called Drum-Shaped-BottleWuliangye) from the 1960s. The new product inherits the memories and sentiments of a previous era while also im-proving the classic liquor rooted in consumers' minds. It is intended to bring a higher-end experience through betterimaging and quality.
"Timeless Night" Product Launch Event
Measures to IncreaseConsumer Satisfaction
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Zou Tao, Executive Deputy General Manager of Yibin Wuliangye, attended the strategic upgrading and new product
tasting event.Leaders of Wuliangye attended three launch events in Shanghai, Chengdu, and Guangzhou.
CasesTo upgrade the sales channels and provide better services to consumers in Shaanxi Province, Wuliang Chun (RichFlavor) held a brand strategic development and new product tasting event at Xi'an, Shaanxi. The event signicantlyincreased awareness of Wuliang Chun (Rich Flavor) in the local market because it energized local channel operatorsand e?ectively reached targeted groups.
Brand Strategic Upgrading and New Product Tasting Event
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Jianzhuang Wealth BriengConsumer Satisfaction
Survey
zIn 2019, a consumer satisfaction survey conducted by a third party (Sich-uan Association for Quality) showed that:
Wuliangye's satisfaction rating was
94.82, which falls into the
"very satisfied" category, according to general inter-national standards. It wasup 0.2 compared with that of the previ-
ous year.
Cases
Cases
Wuliang Nongxiang Series Baijiu Yibin Co., Ltd. held online meetings when restrictive measures were implementedto ght COVID-19 to analyze supportive measures for dealers and key marketing tasks. Six measures were carriedout, including reducing Q1 KPI targets and subsidizing labor costs. In addition, health kits were sent to nearly 100,000consumers in the "Jointly Forward" campaign.
On May 13, we launched the rst Jianzhuang Wealth Brieng in Henan Province, where managers of the WuliangNongxiang Series Baijiu Yibin Co., Ltd. and dealers in the Henan region shared opinions on new opportunitiesbrought about by the improved Jianzhuang. We will continue to support dealers in business transformations by as-sisting them in building their own Wuliangye marketing teams and in conducting targeted marketing operations to fullyleverage Wuliangye's advantages.
Supporting Dealers to Survive
Jianzhuang Wealth Brieng
zDuring 2020, Wuliangye addressed 100% of complaints on time, more than 95% of whichwere properly handled.
Wuliangye established a well-designed after-sales service system and product quality complaint handling mechanismwhile instilled customer-rst idea thoroughly. Over 95% of complaints were addressed to the satisfaction of customers.
We collected product quality complaints via hotlines, e-mails, dealerfeedback, and other channels and information on the product report-
ed, as well as on the reporter.
Inform customers of how the problem is handled.All information will be sent to the quality management
department in a timely manner.
Adopt a uniform handling procedure that is in line with related principles and safe-
guards the legitimate rights of customers.
We have a custom-er-centric approach.
We optimize service pro-cedures and increaseresponse speed to en-sure all complaints arehandled effectively ande?ciently.
Efforts are being madeto enhance after-salesservice staff perfor-mance through compre-hensive trainings.
Our after-sales sup-port channels includetelephone hotlines, fax,letters, personal visits,and lines for reportingcounterfeit products.
After-Sales Service System
Improve Customer Service by Reinforcing After-sales Structure
After-SalesService Concept
ComplaintHandling System
Professional Service
After-SalesService Channels
After-Sales DepartmentPerformance
Product Quality Complaint Handling Mechanism
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Investor RelationsIn 2020, Wuliangye fully performed its information disclosure legal duties and improved its IR management system bybuilding up communication platforms for investors and ensuring returns.
z ‘A' Rating for Information Disclosure from the Shenzhen Stock Exchange in 2020 (6th Consecu-tive Year)
zBest New Media Operator of 2019 Investor Relations Golden Awards by www.p5w.net
zBest Investor Relations, Best Board Prize, and Best New Media Operator by Securities Times
Efficient Information Disclosure Ensures Transparency
Awards on Investor Relations
Management
In 2020, the Company received95 investors coming for eld investigation, had over 1,800 conver-sations with investors, and replied to282 investor's questions on irm.cninfo.com.cn/.Wuliangye attended22 meetings on securities trader investment strategy held by securities companies,communicating with roughly 660 people face-to-face.Wuliangye had27 online communication meetings with roughly 510 people.
Wuliangye formulated and disclosed98 reports, regular and temporary.
An investor communication meeting
Employee Recruitment and Development
On the premise of legal hiring practices, Wuliangye presses ahead to ensure stability on six fronts (employment, the nan-cial sector, foreign trade, foreign investment, domestic investment, and expectations) and maintain security in six areas(job security, basic living needs, operation of market entities, food and energy, stable industrial and supply chains, and thenormal functioning of primary-level governments) . On one hand, it sees all job-seekers equal, regardless of ethnic group,gender, age, or whether they are paralyzed, and o?ers jobs in accordance with the conditions necessary to them. Onthe other hand, it keeps the sta? size and compensation the same, and more importantly, creates more job vacancies forupstream and downstream companies by leveraging the advantages of a long industrial chain and a whole supply chain,developing in a sound way.
Wuliangye upholds a strategy of empowering itself through talents. Resting on the core value idea of creating happinessfor employees, we strictly implemented an "equal pay for equal work" philosophy, and are recruiting more people whilekeeping existing positions intact. We take employee empowerment and welfare into careful consideration, and try to devel-op more medium and long-term incentives in order to build a common future for employer and employee to share benetsand risks and to boost the organization's healthy development for coming decades.A Working Environment that Features Diversity and Fairness
High-Quality Operation Increases Returns on Investment
Actively RepayingInvestorsIn 2020, Wuliangye paid 2019 dividends totaling RMB8.
billion, and RMB 22 (tax-inclusive)in cash per 10 shares to all shareholders.On November 5, 2020, Wuliangye's market capitalization reached RMB
1.01 trillion, becoming
the?rst public company to exceed a market capitalization of RMB 1 trillion on the Shenzhen StockExchange and in Sichuan Province.
zObtained awards from the Top 100 Companies listed on Main Board and Top 10 ManagementTeams of Companies listed on Main Board in the 14th China Listed Company Value Evaluation
zHighest Investment Value Award by Gelonghui
z2019 Golden Bull of Investment Value by China Securities Journal
Recognition ofInvestment Value
CasesOn May 15, Wuliangye held an online meeting to review its 2019 performance report and 2020 Q1 report, where se-nior managers answered 75 questions from investors. Investors responded positively. On May 29, Wuliangye held the2019 Shareholder General Meeting, which was livestreamed for the rst time and open to global investors and themedia. Standing in the spotlight of investors, it recorded a total of 128,000 views.
New Online IR Management Methods
Practices on Communication
with Investors
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Recruiting Talents Through Multiple ChannelsProfessionals and University Graduates: Wuliangye hires graduates of elite universities at home and abroad, mainlythrough campus recruitment events and participating in college-based job fairs organized by related provincial and munici-pal departments. In 2020, it enrolled 92 recent university graduates through campus recruiting.Elementary Management Talents and Technicians: The company hired 127 talents for production and managementpositions mainly through job postings.Employee DiversityBy the end of 2020, Wuliangye had a total of 25,882 employees, more than 800 of whom were handicapped.
30 and underCollege andabove
31-40
51-60Middle schooland below
41-50Senior highschool to collegeMaleFemale
Employment
by Gender
72%28%
Employmentby GenderEmploymentby Age
13%
40%
13%
33%49%
29%22%
Wuliangye supports employee development through a wide range of orientation programs and training sessions for newemployees.New Employee TrainingCareer Leader Model: We enhanced the professional and comprehensive skill sets of 92 new college graduatesthrough internships at workshops and subsidiaries.Job Rotation System: In a uniform scheme, 26 management trainees received experiential training while workingin departments for six months. By evaluating talents for di?erent job aptitudes, we ensure proper matches betweenjobs and talents.Vocational Skill TrainingImplementing Craftsmen Incubator Program for Enhancing Skill Sets: With their number increasing to 14, in-cubators were set up in all major workshops and the three-subject-themed training system delivered with strongere?ect.New-Type Apprenticeship: We provided training programs for verication of professional wine making and tast-ing skills. 204 participants passed the test.Skill Competitions: Wuliangye held over 170 vocational skill competitions of multiple levels, which enrolled over10,000 employees.Training Programs for Elections of Provincial and National Baijiu Evaluators: In 2020, 51 employees wereelected to take part in the Sichuan Baijiu Evaluator and recorded a pass rate of 89%. Among them were 15 nationalBaijiu evaluators of China Alcoholic Drinks Association who had a pass rate of 100%. Sichuan Provincial Highly-Skilled Technician Training Center Application：
Wuliangye had three specialtiesapproved, including Baijiu production, Baijiu tasting, and machinery processing.
Training Supports Employee Development
Employee TrainingSystem
Opening ceremony of 2020 Baijiu fermentation technician evaluation and training program
Wuliangye Craftsmen Incubator 2019 Awards Ceremony and 2020 Badge-Pinning Ceremony
Cases
Cases
Wuliangye held the 2020 Baijiu fermentation technician evaluation and training program together with the IndustryAssociation for the Golden Triangle of Chinese Liquor, which was participated in by over 200 employees of liquor pro-duction workshops.
On May 1st International Workers' Day, Wuliangye held the Craftsmen Incubator 2019 Awards Ceremony and 2020Badge-Pinning Ceremony, where 4four leading technicians and 20 outstanding trainees from the incubator wereawarded. Meanwhile, tributes and good wishes were extended to all sta?.
2020 Baijiu Fermentation Technician Evaluation and Training Program
Wuliangye Craftsmen Incubator 2019 Awards Ceremony and 2020 Badge-Pinning Ceremony
Employmentby GenderEmploymentby EducationBackground
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Corporate leaders expressed their greetings and distributed allowances to frontline workers in person.
In 2020, Wuliangye implemented its core value idea of creating happiness for employees through a variety of measures,such as actively addressing their di?culties, increasing compensation and welfare, advocating work-life balance, and re-sponding to their feedback.
Taking Care of Employees to Build a Happy Company
Address Employee Di?culties
zWuliangye approved internal retirement for 107 severely-ill employeeswho can have enough time for recovery.
zWuliangye delivered salvage funds and cash and in-kind contributions toemployees, totaling over RMB 8.2 million.
Work-Life Balance
zWuliangye held over 40 variouskinds of cultural and sports events,like the employee sports seasonand book-reading promotion.
zWuliangye's Employee Familysupports employee wellness with agym and self-service café.
zWuliangye set up the WuliangyeEmployee Hobby Society, whichincludes groups on costume de-sign and Hanfu (a typical traditionalcostume of China) .
Improving Compensation and Ben-
ets Systems
zIncrease the average annual reve-nue per capita enormously by en-hancing compensation and benetsin parallel with business growth.
zOffer stronger incentives for em-ployees by adopting the ESOP andsharing benets generated throughreform.
zEnable employees to enjoyhigh-quality social services at adiscount, saving them over RMB 4million.
zOffer a wide range of welfare in-cluding free shuttles, meal allow-ances, and gifts on holidays.
Care Measures
Closing ceremony of the employee sports season
Aerobatics Competition
Table Tennis Competition
Tug-of-War Competition
Employee sports season
Responding to Employee Feedback
zIn 2020, Wuliangye collected 585 suggestions from employees of the Wuliangye Family's DigitalLabor Union, all of which were well-addressed.
zThe reception team comprising the Wuliangye Sta? Management Center, Human Resource De-partment, Party-community Work Department and Labor Union received visits by employees for152 man-times in 2020, and dealt with 20 petitions.
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SOCIAL RESPONSIBILITY REPORT2020Industrial Progress
Wuliangye performs its responsibilities as an industrial leader, and is committed to set landmarks in terms of industrialscaling, quality building, digital transformation, sustainable development, and corporate culture. It navigates the develop-ment of peer companies by assisting local liquor producers, participating in events held by industrial associations, andhaving its scientic achievements and good experiences accepted as industry standards.
zWuliangye participated in the drafting of the national standard Guidance For Enterprise Brand Cultivation (GB∕T38372-2020) and the industrial standard Regulation on Baijiu Quality Safety Traceability System.
zThe national standard Strong Flavor Chinese Spirits (GB/T10781.1-2006) (awaiting approval) whose revision was ledby Wuliangye, has entered the approval and release phase.
zThere are 13 local standards with Wuliangye as the major formulator coming into e?ect, such as Grain Exclusivelyfor Liquor Fermentation at Yibin-Yibin's Procurement and Inspection Procedure on Red Sorghum ( (DB5115∕T 29-2020) , Technical Specification for Green-design Product Assessment-Multi-Grain Strong-Flavor Chinese Spirits(DB5115/T 33-2020) , and Technical Specication for Constructed Eco-wetland Treatment of Wastewater in LiquorFermentation (DB 5115/T 34—2020) .
Formulate Regulations to Standardize Industrial Development
Promote Industrial Development with Cooperation and Exchanges
Some Major Industrial Associations Joined by Wuliangye
CasesThe 9th Chinese Baijiu T9 Summit was held by China Alcoholic Drinks Association with the theme "Structure, Systemand Direction—The New Journey for China's Baijiu Industry in the Post-Epidemic Era. Li Shuguang, Chairman ofWuliangye Group and Party Secretary of Yibin Wuliangye, delivered a speech on the four characteristics of the Baijiuindustry's new normal, three major trends to be tapped, and four core elds to be focused on in the post-epidemic eraat the conference.
The 9th Chinese Baijiu T9 Summit
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye,
attended the 9th Chinese Baijiu T9 Summit
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SOCIAL RESPONSIBILITY REPORT2020CasesOn September 6, Wuliangye inaugurated the High-quality Development Forum for Traditional Fermented Food Indus-try. A total of 13 academicians from the Chinese Academy of Engineering delivered themed speeches and sharedinsights on state-of-the-art research in quality development for the Chinese Baijiu industry, making their visit reectiveof the industry's considerable strengths.
High-quality Development Forum for Traditional Fermented Food Industry
Wuliangye held the High-quality Development Forum for Traditional Fermented Food Industry
CasesOn September 25, Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, was invitedto attend the Chinese Enterprise Reform 50 Forum and Conference on Building a Creative Qingdao, and delivered akeynote speech in the private session themed, "Deepening Reform to Create New Opportunities and Energize Indus-try for New Landscapes."
Chinese Enterprise Reform 50 Forum.
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, was invited to attend the Chi-
nese Enterprise Reform 50 Forum and Conference on Building a Creative Qingdao
CasesThe Guyu Forum promoted cultural and business exchanges with focuses on stimulating consumption potential andfacilitating integrated culture-tourism development and the building of Suqian, China's Baijiu capital. Li Shuguang,Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, was invited to attend the opening ceremonyof the festival and gave a keynote speech at the forum themed, "Focusing on Principles, not Tools to Create a BetterFuture."
2020 China's Baijiu Capital (Suqian) Culture and Tourism Festival and Guyu Forum
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, attended the 2020 China's
Baijiu Capital (Suqian) Culture and Tourism Festival and Guyu Forum
CasesOn October 26, Gao Hongjun, Vice President of the Chinese Academy of Sciences, led a 16-person delegation,which included academics Qin Dahe and Zheng Lansun to visit Wuliangye. The delegation visited the Wuliangye Mu-seum on Liquor Culture, National Quality Supervision and Inspection Center of Liquor Products and liquor productionworkshop 523, and acknowledged our work in preserving microorganisms for liquor fermentation and quality man-agement systems construction.
Academics from the Chinese Academy of Sciences visited Wuliangye for a eld investigation.
Academics from the Chinese Academy of Sciences visited Wuliangye for a eld investigation.
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CasesOn December 8, the 2020 Sichuan Baijiu National Promotion Tour was rolled out in Guangzhou, as was organized bythe Industry Association for the Golden Triangle of Chinese Liquor under the guidance of the Sichuan Provincial Eco-nomic and Information Department. Wuliangye, the spokesman of Sichuan Liquor, and other "six major producers"and "10 rising producers" promoted the culture, brands, and quality of Sichuan liquor in Guangdong Province, contrib-uting to its high-quality development.
Participating in the 2020 Sichuan Baijiu National Promotion Tour as An Industrial Leader
Zhu Zhongyu, Deputy General Manager of Yibin Wuliangye, attended the 2020 Sichuan Baijiu National Promotion Tour
Cases
The China International Alcoholic Drinks Expo is committed to promoting mutual learning and win-win cooperationsbetween liquor enterprises and to promoting Chinese liquor industry to be better integrated with the internationalliquor landscape. Wuliangye exhibited multiple products including the 501 Wuliangye, Classic Wuliangye and the8th-generation Wuliangye. Industrial leaders and provincial and municipal o?cials visited our booth, learned aboutour products, techniques and production, and spoke highly of the liquor's taste, quality, and the aspirations embeddedin its taste.
The 15th China International Alcoholic Drinks Expo
Wuliangye participated in the 15th China International Alcoholic Drinks Expo
Cases
On September 9th, the opening ceremony for online events at the 10th China (Guizhou) International Alcoholic Bever-ages Expo and Guizhou Alcoholic Beverages Expo was held in Guiyang city. Wuliangye, invited by the hosts, demon-strated its main brand products and its four national strategic products to the wide acclaim of guests and visitors.
The 10th China (Guizhou) International Alcoholic Beverages Expo
Tang Shengyun, Deputy General Manager of Yibin Wuliangye, was present at the 10th China (Guizhou) Internation-
al Alcoholic Beverages Expo
Cases
On June 21st, Zeng Congqin, Chairman of Yibin Wuliangye, led a delegation to visit C&D Liquor and exchangedideas in all areas on in-depth cooperations. In the future, Wuliangye hoped to join hands with C&D Liquor to seekhigh-quality growth while ensuring stability and expanding market channels in order to allow more consumers to haveaccess to Wuliangye products, and to become closer to partners through a wider range of projects.
Holding In-Depth Communications with Liquor Companies
Zeng Congqin, Chairman of Yibin Wuliangye, led a delegation to visit C&D Liquor
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CasesThe Chief Spirits Tasters Annual Meeting, hosted by the China Alcoholic Drinks Association and organized byWuliangye, entered its fourth consecutive year in 2020, and served as an important platform for exchanges amongchief tasters. In total, 28 chief spirit tasters came to attend the 2020 meeting from di?erent regions, sharing insightson spirit quality, avor, style, culture, and experience, providing intellectual support for the high-quality developmentof Chinese Baijiu industry.
China Alcoholic Drinks Association Chief Spirits Tasters Annual Meeting 2020
Wuliangye provided technical support to liquor producers Xiaojiaolou and Jiangkouchun in Pingchang County to promotethe joint development of the whole industry, and performed responsibilities as a leading player.Improving Baijiu Pro-duction Techniques
Wuliangye held semi-nars on assisting liquorproducers to maketargeted plans on im-proving their productiontechniques.
Facilitate infrastructure
construction forfermentation pits
Wuliangye helped Xiaoji-aolou build 148 new pits,18 of which began opera-tion, and assisted Jiangk-ouchun in restoring 97 ofthose pits, 80 of whichwere for liquor produc-tion workshops and all ofwhich can work properly.
Giving Guidance onEnhancing ProductQuality Management
Wuliangye helped thetwo companies in revis-ing technical standardsand systems as well asa procedure for baseliquor production andnew product develop-ment to build a productquality managementstructure.
EnhancingEmployee Skillsets
Wuliangye organizednine training sessionson key issues for thetwo companies, whichcovered 283 people.
Assist Local Liquor Producers
Wuliangye organized the China Alcoholic Drinks Association Chief Spirits Tasters Annual Meeting 2020
Employee training
Xiaojiaolou's new pits in operationGuidance on liquor production
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Production TechniquesQuality ManagementScientic and Technological InnovationNew ProductsDigitalization
Wuliangye’s quality- high standards across all areas
Pursuing premium quality, Wuliangye develops outstanding fermentation tech-niques in areas of water, grain, liquor yeast, the fermentation pit, and with tech-niques. Wuliangye stays true to its original aspirations, seeing quality as its priority.It achieves consistent, high-quality development thanks to new product develop-ment and technology upgrading. Upholding craftsmanship, it enhances its brandimage and quality label "China's best strong-aroma liquor."
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SOCIAL RESPONSIBILITY REPORT2020Production TechniquesWuliangye has spared no e?ort in keeping its commitments, regardless of labor or time costs. Following a nature-orientedfermentation philosophy and traditional pure-grain solid fermentation method, we keep rening the production techniquesby applying best practices selected through rigorous evaluation, which are driven by our dedication to excellence and highrequirements for accuracy.
Based on the multi-grain solid fermentation method that came into being over 1,000 years ago, Wuliangye has devel-oped a unique set of fermentation techniques: one supremacy, three advantages, six innovations, and six intricate pro-duction steps, giving a living example of Chinese traditional distillation techniques and giving birth to Wuliangye's exclu-sive style of "long-lasting aroma, rich avor, and well-balanced and clear taste."
Wuliangye's solid fermentation is complex with very stringent requirements that guarantee excellent liquor quality.Wuliangye holds fast to the traditional pure-grain solid fermentation method and its advantages in using ve kindsof grains. Our quality comes from applying best practices that are selected through rigorous evaluations.
Three Advantages—Environment, Craftsmanship
and Old Fermentation Pits
One Supremacy-Extreme and Complex Techniques
Advantages in the EnvironmentWuliangye's plant sits in a region that boasts the mostfavorable natural conditions for distillation among all re-gions across the circle of the same latitude. Wuliangyeuses only Yibin yellow clay to build and spray on pitsfor its weakly acidic, strongly adhesive, and water re-taining qualities, as well as because it is rich in miner-als like nickel and cobalt, which are rarely found in theclay of other regions.
Advantages in Old Fermentation PitsWuliangye's old fermentation pit group can be dated back to 1368, during the start of the Ming Dynasty (1368-1644), with a history of 653 years. These crypt-type fermentation pits have been in continuously operation from thefourteenth century until the present day. Good liquor requires old fermentation pits and yeasts. The older the pitsare, the better the microorae that grow, which is good for liquor fermentation. Wuliangye's unique aroma has beenshaped in this way.
Advantages in CraftsmanshipEach and every Wuliangye employee performs crafts-manship in his/her work. Generation by generation,Wuliangye's people have carried on a legacy denedby commitment, honesty, dedication, and perfec-tion, making "traditional Baijiu-making techniques ofWuliangye" a National Intangible Cultural Heritage.
Building a Time-Tested Chinese Brand
Level-Based Vinasse InputWuliangye puts vinasse into different levels of thesame pit in accordance with the methods of vi-nasse-based ingredient making.
Quality-Based Liquor SelectionThe spirits maker distinguishes subtle color, aroma,and avor di?erences of liquor in di?erent parts insidethe pit by observing, smelling, and tasting, and select-ing liquor based on their quality and location. Liquoron the very top and bottom will be discarded.Level-Based Vinasse RemovalVinasse is removed from di?erent levels, includingtop, upper, medium, lower and bottom, based ontheir sensorial characteristics, to ensure that vi-nasse of di?erent fermentation features will not behomogenized unexpectedly.
Quality-Based Blending
As per principles "like dissolves like" and harmonyprinciples, Wuliangye calculates how to mix unblend-ed liquor in order to create a good taste and typicalstyle that almost or already reaches quality standards.Level-Based DistillationThe level-based distillation technique can gelatinizenewly-added grains, as well as separate and con-dense alcohol and flavor substances contained infermented vinasse to preserve their identical prop-erties.
Grade-Based Storage
Unblended liquor is separately stored in line with itsgrade determined, making it easier for blending andselection.
Five-Grain FormulaWuliangye has created a science-based formulathat precisely blends the characteristic flavors ofspirits made from the 5 types of grains respective-ly: sorghum's clear taste, rice's richness, glutinousrice's sweetness, wheat's long-lasting taste, andcorn's strong taste.BaobaoquWuliangye has prepared Baobaoqu, a fermentationstarter, with good quality wheat under medium tohigh temperature. Baobaoqu is seen as a remark-able achievement in artificial cultivation due to itsbulge-shaped appearance, and has played a un-paralleled role in creating Wuliangye's strong aromaand avor.Circular FermentationVinasse is taken out of one pit and put into the pitnext to it where it continues to ferment. This kind ofcircular fermentation technique balances and en-hances the fermentation levels of all operating pits.
Boiling Added Water
Wuliangye adjusts the temperature of added waterfrom 80-85 degrees centigrade to nearly 100 de-grees, the boiling point of water, because it is easierfor grains to be absorbed by water at this tempera-ture, which is conducive to fermentation.
Double Round FermentationWuliangye allows vinasse at the pit bottom to fer-ment for two rounds because it produces and ac-cumulates a vast number of aromatic substances,making the avor stronger.Manual and Computer-Based BlendingWuliangye was honored with the Major ScientificAchievement Award and Scientific AdvancementAward by the former Ministry of Commercial Busi-nesses (now Ministry of Commerce) thanks to itsblending method, which integrates manual blendingand computer-based blending and which had neverbefore been seen in Chinese Baijiu history.
Six Innovations
Six Intricate Production Steps
One Supremacy and
Three Advantages
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Following an apprenticeship model, Wuliangye's employees have kept old skills alive and stuck to the values of honesty,dedication, and pursuit of excellence which have been honored by craftsmen for generations.
1998 Changfasheng, one of Wuliangye's old pits, was identied as a provincial cultural relic by the Sichuan Provin-
cial People's Government.
2005 The mud taken from Wuliangye's ancient fermentation pit became a permanent collection of the National Mu-
seum of China, were it is the only "living relic" preserved by the museum as of today.2008 The "Traditional Baijiu-Making Techniques of Wuliangye" was listed as a National Intangible Cultural Heritage
by the State Council.
2012 "Wuliangye's Ancient Baijiu Workshops" was included in the Chinese Tentative List of World Cultural Heritage.2013 The "Wuliangye's Ancient Pit" site was put under national-level protection with the approval of the State
Council.2018 "Wuliangye's Ancient Pit Group and Liquor Workshops" were incorporated into the list of National Industrial
Heritage by the Ministry of Industry and Information Technology.
Master TechniciansAt Wuliangye, there are 25 experts entitled to special government allowance from the State Council, 6 National Tech-nical Experts, 5 China Liquor Production Masters, 3 China Baijiu Masters, 6 China Chief Spirits Tasters, 25 nationalBaijiu evaluators, 9 Sichuan Provincial Technical Experts, and 51 Sichuan Provincial Baijiu Evaluators.Passing on SkillsWuliangye has been training technicians for various skills, such as pit maintenance, distillation of grains in retorts,vinasse-based ingredient making, liquor selection, blending through various methods like competitions, on-site train-ing, and training sessions designed for after an employee resumes his/her position. Special attention is paid to teamheads and leaders of higher levels in terms of their competence in liquor identication, selection and usage. In ad-dition, the development of "Craftsmen Incubator" is promoted by setting up 11 incubators for Baobaoqu making andliquor production.
Master Technicians andPassing on Skills
Acknowledgement of Wuliangye's Traditional Techniques and Fermentation Pits
Upholding Craftsmanship by Keeping Skills Alive
Qu Wancong, Senior Technician and Head of Workshop
501. Qu has been pursuing excellence in both liquor pro-
duction theory and techniques since beginning work inWuliangye's Workshop 501 in 1995. After being selectedas a leading technician for the Craftsmen Incubator pro-gram in 2019, he unselfishly instructed trainees on hisexpertise, later gradually becoming known as part of thebackbone of the company. In 2020, he was recognizedas a National Model Worker."My achievements are credit to elder masters' detailedteachings. Now, I am handing the ‘shovel' passed on tome to younger workers. In this way, the manual skills thathave been used for over 1,000 years can go on to liveforever."
——Qu Wancong, National Model Worker
Cao Hongying, a senior spirit taster, is Party Secretaryof Workshop 506, and has outstanding blending andtasting skills owing to her over 39 years of commitmentto developing new Wuliangye products, series of liquor,and production processes including testing of unblendedliquor, aging, blending, and combination. She enjoys theState Council's special government allowance and hasbeen awarded many titles, including China Chief SpiritsTaster, National Model Worker, and National TechnicalExpert, making her an implementer and inheritor ofWuliangye craftsmanship for the new era.To pass on her invaluable expertise and experienc-es, Fan Yuping, the pathnder of liquor blending, hasthroughout her life introduces new training models andmethods with reference to what has been concludedfrom previous training sessions, helping many employ-ees grow into leading technicians at national and provin-cial levels."My work is to nd balance between taste, aroma, andcolor." Behind my 30 years of work is a history of over4,000 years. "
——Cao Hongying, National Model Worker
Liquor Production
Blending
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Wuliangye has kept improving its quality management system, Hazard Analysis Critical Control Point (HACCP) manage-ment system, and measurement management system to ensure product quality can be safeguarded with institutionaltools.
Quality Management RegulationsFood safety management: Formulation of 13 prerequisite plans for the food safety management structure and eightsets of sanitation standard operating procedures (SSOP) .Measurement management system: Improvement of manuals and procedures.Management systems: Amendment of Regulations on Qualications of Quality Inspectors for Raw Materials, Packag-ing Materials and Finished Liquor.
Stricter than na-tional standardsOccasional ran-dom inspections
+Monitoring in xedsites
Selection of suppli-
ers+Education andimplementation ofquality assurance
information
Reviews on label,tag, and interspace
ratio+Quality safetyPrerequisite evalua-
tion
Liquor quality inspec-
tionProduct assembly qual-ity inspection
+Quality Test CenterTechnological support
Enhanced an-ti-counterfeiting
measures+Closed-loop quali-
ty assurance
Quality Management
Quality Management
Wuliangye follows the quality-rst principle that allows only the best grains to be used, upholds century-old craftsmanship,and pursues optimal liquor production. By implementing the new quality concept that quality is life and every drop of liquormust be made out of dedication, Wuliangye forges a life-cycle quality management system for the whole journey, fromgrain to drop of Baijiu.
CasesSupplier Qualication ManagementWuliangye examines and reviews the certicates of new and qualied suppliers and tracks their expiration dates.Wuliangye adamantly requires suppliers to submit qualications for the raw materials provided and keeps collectinggrain (quality, hygiene, heavy metal etc.) inspection reports and information on how pesticides are used locally, all ofwhich is veried via the HACCP.Wuliangye collected over 860 inspection reports and HACCP verications in 2020 , the latter featuring a coverage of100%.
Grain Traceability ManagementWuliangye reviews where grains are harvested by suppliers and manages the process from grain acquisition, trans-portation and storage in Yibin-based transfer warehouse to ensure that every batch is traceable.From 2018 to 2020, Wuliangye performed on-site examinations on about 400 warehouses located in other regions,and 450 cross-checks between raw materials taken from frontend warehouses and those submitted for inspection toensure quality consistency.
Patrol Inspections on Major Types of GrainsWuliangye tracks and traces backwardly of raw materials stored in Yibin-based transfer warehouses timely in respondto feedbacks from workshops' inspection. From 2018 to 2020, Wuliangye checked about 1,000 samples in patrol in-spections.Wuliangye implements regular patrol inspections of the quality of stored grain and heavy metal. Wuliangye checked197 samples randomly chosen from 23 batches.
A Multi-Layer System for Raw Material Traceability Management and Food Safety Management
zARE-QE Award
z2020 Sichuan Tianfu Quality Award
zThe Control on Baijiu Liquor Exposed to Hazardous Substances of Process Material project obtained the firstprize of the 2020 Science and Technology Award by China National Food Industry Association.
zWuliangye obtained first prize in Yibin's first "Quality Volunteer Cup" Quality Knowledge Competition.
zWuliangye's report Use Measurement Tools to Reduce Energy Consumption and Increase Efficiency at Workwas rated an exemplary case of the "Industrial Measurement Benchmark" program launched by the State Ad-ministration for Market Regulation which was aimed at helping enterprises improve efficiency through measure-ment methods.
zIn 2020, Wuliangye registered 56 QC achievements with nearly 3000 employees engaged in qualityteam activities. Wuliangye won 1 grand prize, 2 first prizes and 7 second prizes for Yibin Excellent QCAchievement with 6 accomplishments rated as provincial-level outstanding achievements.
Quality Management
Honors
Supervision ofevery step of graininspection
Packing materialsProcurement man-agement
Prerequisite man-agement of newproducts
Liquor qualityinspection man-agement
Closed-loop man-agement on brandprotection
Product Quality Ensures Advantages
Certied by Food SafetyInspection Food SafetyWuliangye obtained qualityand food safety managementsystem certicate and manu-facturer's certicate from theChina Quality Mark Certica-tion Group Sichuan Co., Ltd.Wuliangye passed the mea-surement management sys-tem annual inspection con-ducted by the Sichuan O?ceof China Certificate Centerfor Metrology and Measure-ment.
High Measurement Stan-
dards by Enterprise
Wuliangye has the 27highest measurementstandards by enterprise,such as a calibrating ap-paratus for quantitativeliquid lling machines andstandard first-grade alco-hol meters.Wuliangye conducted 56metrological verication orcalibration projects.
Critical Food Safety
Knowledge
All of the 615 middle-levelmanagers and food safetymanagement staff (full-time and part-time) ac-quired the requisite knowl-edge in the area, andpassed the test organizedby the State Administra-tion for Market Regulation.
Implementation ofLife-Cycle Quality Moni-
toring
Wuliangye monitored ca-sual inspections on thequality of grains stored,Daqu, water quality, liquorto be packaged, packag-ing materials, and nishedliquor, all of which wereperformed as scheduledin a timely manner withoutany incorrect data.
Life-Cycle QualityManagement System
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Wuliangye set up the International Joint Quality Research Center and Alcoholic Beverage Safety togetherwith the China National Research Institute of Food and Fermentation Industries, which is the only nation-al-level joint international center of China's alcoholic drinks sector.
Wuliangye has set up 14 innovation plat-forms: ve national, seven provincial andministerial, and two municipal.
Wuliangye is pressing ahead with the
application of a provincial Baijiu industrial
innovation center and provincial Baijiu
Manufacturing innovation center.
Wuliangye trained food safety management sta?, quality inspectors, and related employees in accordance with 2020 Qual-ity-related Sta? Training Schedule and Employee Evaluation Data.
Wuliangye organized training lessons for platform scale management sta? and weighers, all of whom passed thetest. It also arranged measurement training programs for measurement managers, measurement conrmationsta?, and internal reviewers, and metrological verication/calibration sta?, which were participated in for over 200man-times.
Wuliangye conducted theory and practice tests for inspectors on grains, grain daqu, cha?, packaging materials,and nished liquor, in which 425 inspectors participated to obtain qualications.
Wuliangye organized professional training classes on an enterprise level to over 800 HACCP team members andfood safety management sta? (full and part-time) on food safety laws, regulations, know-how, quality and foodHACCP system standards, and formulation and revision of the above mentioned plans.Food safety management sta?
Formulating Scientic Innovation Management Regulations
Award Commercialization of Scientic and Technological Achievements
Enhance Intellectual Property Protection
Training QualityManagement Sta?
Supporting a ScienticInnovation SystemFood Safety Inspector
Measurement Sta?
Lead Quality Development by Employee Empowerment in AllAreas
Cases
In September of 2020, Wuliangye promoted quality management information, laws, regulations, and standardsthrough the internal network and via LED screens. The theme of the event was "Building China's Quality Capabilitiesand Striving to Build a Moderately Prosperous Society." Meanwhile, it enhanced employee awareness and qualityskills through competitions, making quality control a central topic for the company.
Quality Month
Wuliangye keeps empowering innovation management and support systems to better incentivize researchers to increasethe rate of and improve on innovation.
Wuliangye formulated Regulations on Scientic and Technological Research Management to clarify the whole man-agement process for projects under this category.Wuliangye formulated Regulations on Research Expenditure to standardize how to use and run statistics on re-search funding.Wuliangye formulate Regulations on Management and Disposal of Test (Experimental) Devices for Scientic Proj-ects (Trial) to regulate how these facilities are handled.Wuliangye revised Implementation Rules on Awarding Scientic and Technological Achievements to honor majorachievements that boost the business growth.Wuliangye formulated Implementation Rules on Awarding Minor Innovations and Progresses to inspire all frontlineemployees to make improvements based on their positions.Wuliangye formulated a number of regulations to address IP, such as the Implementation Rules on Trademark Man-agement, Implementation Rules on Patent Management, and Implementation Rules on Copyright Management.
Supporting Innovation by Improving Regulations
Scientic and Technological InnovationWuliangye adheres to pragmatic, e?cient, innovative, open and inclusive work ethics. It sees transferring basic applicationresearch and scientic achievements into actual innovations fundamental for its development, and endeavors to develop amuch-needed high-level young talent pool that specializes in research and innovation.
WuliangyeNew ManagementPlatform
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Wuliangye places equal importance on innovation and intellectual property protection, which it endorses by its leading posi-tion among peers in terms of the number of patents applied and authorized.
Wuliangye set up a technological innovation system that integrates the three aspects of enterprise, market, and research,and which forms ve enterprise-university collaboration models, including technological cooperation and joint study of bot-tleneck problems. Wuliangye has partnered with Jiangnan University and Sichuan University of Science & Engineering todeliver on talent cultivation and technological progress.
Transmission Mechanisms and Applica-tions of Multi-Grain Strong-Flavor Baijiu'sKey Microorganisms and Flavor Sub-stances
World-Leading Research Project
Research and Application of Methods onEvaluating Exogenous Food Safety Risksin Liquor ProductionChina-Leading Research Project
Drive Business Growth as A Patent Leader
Boost Win-Wins in Enterprise-University Cooperation
Patents Applied
New ProductsWuliangye has upgraded its product portfolio in line with its customer-centric value proposition. Wuliangye has shortenedthe product development cycle through management bulletins, backward scheduling, and regular reporting to ensure thequality of new products meet the various needs of customers.
The project co-conducted by Wuliangye andJiangnan University won second prize atthe 2019 Science and Technology ProgressAward, China Alcoholic Drinks Association.
"1+3" Strategy for Main Brand"1" refers to: The 52% (Vol) 8th-generation Wuliangye core product."3" refers to:
Diversify Product Matrix through Brand Upgrading
Achievements byEnterprise-UniversityCooperationsBy the end of 2020, Wuliangye had inked33 cooperationagreements with universities on related projects, which paid out
13.166 million yuan in total for research.
(1) The ultra high-end 501 Wuliangye product, which represents a strategic move in reshaping Wuliangye's
high-end product value structure, moving it towards the upper-scale market.
(2) The high-end product series represented by Classic Wuliangye, which forms a major part of the portfolio.
(3) The improved and updated 39% (Vol) Wuliangye that meets consumer need for quality liquor with lower al-
cohol content and which takes the lead in making Chinese Baijiu less alcoholic and more globalized.
Two Proj-ects PassingProvincialAchievementEvaluation
Enterprise-UniversityCollaboration ModelTechnologicalCooperation
Joint Studyon BottleneckProblems
Co-BuildingR&D Centers
Co-BuildingTechnology
Alliances
Co-Building In-dustrial Bases
Core product8th-generation Wuliangye
501 Wuliangye39% (Vol) Wuliangye
Classic Wuliangye
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Meeting Demand for Scenario-Based Needs by ImprovingProducts
In 2020, Wuliangye kept pressing ahead with digital transformation and promoted quality development by setting up digitalmanagement systems that provided support in terms of criteria and platform. At the same time, digitalized marketing hasbeen rapidly developing with digital factors playing a greater role in decision-making in marketing, which ensuring the mar-keting department's ability to rapidly respond to the market.
Promoting Digital Transformation by Optimizing Systems
Digitalization
Wuliangye has implemented a strategy of developing into an industrial leader in digitalization. In 2020, Wuliangye adoptednew models combining digital tools and current business models in all areas, making the digital platform more importantfor supporting the whole picture. In e?ect, Wuliangye went from getting business digitalized to ascending to the level of atrue digital business.
By adopting new practices enabled by the digital transformation strategy, Wuliangye pressed ahead a number of priori-ties in elds of production management, brand building, marketing systems, project construction, and structural reforms,strongly propelling the company's high-quality development.Classic Wuliangye– Paying Tribute to a Classic with a Plum-Vase-Shaped BottlePackage Design: While paying tribute to the classic, Wuliangye introduces more sophisticateddetails to the plum-vase-shaped bottle, evoking the ambitions and courage shared by multiplegenerations.Liquor Quality: Wuliangye highlights three major advantages: the best grains, grade-basedselection, and 10-year aging. Wuliangye uses its traditional production technologies and selectsthe best from the best. The base liquor is stored in old pottery containers for over 10 years, con-tributing to its special and lasting avors.
Series liquor strategy:
Develop the four strategic products and target them in con-certed e?orts at the national market: Wuliang Chun (Spring) ,Wuliang Chun (Rich Flavor) , Wuliang Tequ, and Jianzhuang.
501 Wuliangye Fermented in Ming Dynasty Pits – Most Expensive Limited-EditionStrong-Aroma Baijiu with Flowing, 653-Year FlavorsFermentation Conditions: The 501 Wuliangye is only made in designated workshop pits byspecic craftsmen. Every drop comes from the Ming Dynasty pits of Workshop 501.Package Design: The initial version was released in early 2020. According to feedback fromtargeted consumers, Wuliangye thoroughly optimized its packaging design, from its outer pack-age, bottle cap, and how to open the bottle to the inner bag and the liquor itself. The nal versioncame in October, 2020.
Driving New Models to be Adopted in Operation and ManagementWuliangye explores data values in professional research areas of the liquor industry, in marketing, and production,as well as forms the big-data-based credibility evaluation system and entity accreditation system for the liquorindustry. In addition to giving data support to liquor manufacturers and dealers, Wuliangye combines rhizoma no-topterygii, liquor production and big data to increase output and improve quality, allowing more liquor producers,dealers, and institutes to benet from big data.Promoting Product Quality Lifecycle ManagementWuliangye has set up a leading product quality lifecycle management system through a data traceability system andcontrol analysis on the quality of key procedures, which has promoted transformation from quality checking to quali-ty control and problem prevention.Promoting Digital MarketingIn 2020, the digital transformation program was carried out in areas of optimizing marketing channels, improvingmodels, enhancing management, and coordinating business sectors. By strengthening digital operation of the mar-keting system, getting business digitalized is transforming into making data a business, ensuring the agility of themarketing system.
Promote Sustainable DevelopmentWuliangye connects energy and environmental protection data into its platform via the Internet of Things (IoT) , andcollects, calculates, and analyzes distributed energy data in a concentrated way with the help of 5G and big datatechnologies. As a consequence, Wuliangye is able to e?ectively manage energy information, develop proper strat-egies for energy conservation, provide intellectual support for decision-making, and make the industry greener andstronger.
Driving Quality Development by Improving Strategy
Boosting Quality Development
through Digitalization
Digital Management SystemWuliangye formed an EnterpriseResource Planning (ERP) leadingteam headed by Zeng Congqin,Chairman of Yibin Wuliangye.
Leadership Team
Wuliangye formulated and re-leased the Management Ruleson EPR Project Implementation(Trial) .Management Rules
Wuliangye joined hands with in-dustrial giants like Huawei andAlibaba.Cooperation with External PartiesNew ProductsWuliangye developed402 new product samples, of which 259 were for series liquor companies, 119were for export and import and24 were for Wuliangye.The newly-launched Wuliang Renjia won the 2019 Annual Qingzhuo Award.
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Fight against COVID-19Targeted Poverty AlleviationCharitiesResponsible DrinkingPromote Baijiu Culture
Wuliangye Culture- a care giver and story teller
Liquor, an important messenger, is indispensable in our culture. As an in-heritor of Chinese Baijiu history, Wuliangye manifests the charisma of har-mony-dened culture and brings lasting and rich aromas to the world, mak-ing Baijiu a catalyst for a better life and a token of a harmonious society.
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SOCIAL RESPONSIBILITY REPORT2020Fight Against COVID-19Wuliangye played an active role in ghting COVID-19 as a leading SOE. On one hand, it actively and seriously implement-ed SOE social responsibilities by supporting frontline work and producing materials for epidemic control. On the otherhand, it built up e?ective in-house preventive systems by urging all departments and sta? to full their duties and also en-hancing process management. Wuliangye resumed production in a well-managed way, introducing new marketing modelsand supporting both upstream and downstream enterprises by sector.
? A command center-based model: A leading team comprising of one office and sevensub-groups? A responsibility fullment system: Implementing the dual responsibilities requirement andarea-based management? Guidance on ve major areas: On-site inspection in ve areas
Containing COVID-19 through Efficient Management
CasesOn January 29, 2020, Wuliangye worked together with Sichuan Airlines to deliver 150,000 masks via the direct ightfrom St.Petersburg, Russia, to Chengdu, Sichuan Province. As of February 9, the company had procured 1.44 mil-lion masks, 550 temperature detectors, and 4,850 bottles of disinfectant originating through various channels from13 countries and regions, including Russia, France, Japan, Singapore, Chile, the United States and Panama. Thesesupplies were gathered to ensure the basic needs of work and production resumption could be met.
Ensure supplies by mobilizing global resources
Wuliangye COVID-19 Control Actions
? Production: Resume production according to well-designed schedules? Marketing: Launch the Baijiu supply digital cooperation program? Multiple sectors: Issue the Measures on Supporting Subsidiaries' Production and Opera-tion
? The rst liquor manufacturer to have made donations to Wuhan in cash, besides those
based in Hubei Province.? Ensure supplies by mobilizing global resources? Manufacture medical protective clothing at full stretch
? A full-coverage check with special attention paid to ve types of people? Closed-o? management for campuses with control measures carried out in all areas? Support for community control e?orts through mobilizing employees
? Care for employees through the "One Guarantee + Five Actions" program? Make employees more condent through education? Make employee life at home more interesting with more new methods
Resume Productionas Scheduled
Support Regions Hit
by COVID-19 toContain the Virus
Better Care for
Employees
Detailed Prevention
Measures
COVID-19 Control
System
Cases
Cases
When the COVID-19 pandemic broke out, the company's Party Committee immediately set up a leading group for theprevention and control of the pandemic with Li Shuguang, Chairman of Wuliangye Group and Party Secretary of YibinWuliangye, and Zeng Congqin, Chairman of Yibin Wuliangye, as the group leaders to take full responsibility and giveunied command. The leading group comprised of one o?ce and seven sub-groups held several special meetings tostudy and deploy key prevention and control work. It also formulated and issued documents, including "Urgent Noticeon Strengthening COVID-19 Prevention and Control", to subdivide pandemic prevention and control measures. Dailymeetings were also held to provide information on the current pandemic situation.
On May 15, Sichuan State-Owned Assets Supervision and Administration Commission and Sichuan Radio and Tele-vision hosted the "Tribute to the Power of State-owned Enterprises - Sichuan State-owned Assets and State-ownedEnterprises Fighting against the Pandemic" event. Li Shuguang, Chairman of Wuliangye Group and Party Secretaryof Yibin Wuliangye, was invited to attend the event, where he told the story of Wuliangye's ght against the pandemicand demonstrated Wuliangye's responsible role as a state-owned enterprise.
E?ectively improving political standing and building the COVID-19 control system
Attending the "Tribute to the Power of State-Owned Enterprises - Sichuan State-Owned Assets and State-Owned Enterprises Fighting Against the Pandemic" event
Meetings of the leading group are chaired by Li Shuguang, Chairman of Wuliangye Group and Party Secretary of
Yibin Wuliangye
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, is attending the "Tribute to the Power ofState-Owned Enterprises - Sichuan State-Owned Assets and State-Owned Enterprises Fighting against the Pandemic" event
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Cleaners spray disinfect in the halland other public areas of the company
o?cesLogistics sta? are distributing disinfec-tant supplies to all departments
at the company
Vehicle owners are taking tempera-
ture measurementsThumbs up to the security guards
zEstablishing a sound preventionand control mechanism
zFully implementing preventionand control guidelines
zExamine "ve types" of personnel
Five Actions
zAction to protect employees against thepandemic as they return to work
zAction to convey greetings at the grass-roots level
zAction to gather positive energy to ghtthe pandemic
One Guarantee
zGuarantee the employment,salary, and benefits for em-ployees
zAction to hear employeevoices
zAction to provide psychologi-cal counseling and guidancefor employees
zImplement proper environmentalcontrols
zSupport joint prevention and control
zGuarantee the supply of preventionand control supplies
zContinue regular preventionand control work
Wuliangye Receives Honor For to its Fight Against COVID-19
Adopting Strict Prevention and Control Measures to Safe-guard Employee Health
CasesTo meet various consumer demands for Baijiu, Wuliangye launched its collection of cloud-based stores in time to pro-mote the upgrading of store services and became the rst in the industry to propose "contactless delivery" service.By guiding customers to cloud-based stores and providing innovative models such as contactless delivery service,Wuliangye has served more than 300,000 consumers nationwide with cloud-based stores, ensuring the resumptionof work at franchised stores.
Contactless Delivery Service
Pandemic Preventionand Control Measures
"1+5" Employee Care Campaign
Wuliangye actively united manufacturers and joined hands with distributors in major markets to make donations and con-tribute to the ght against COVID-19.
Hubei and Jiangxi Market: Donated nearly RMB 500,000 yuan and medical supplies worth RMB 1.38 million tocharities and medical institutions in Hubei.Henan Market: Donated a total of RMB 60.18 million to local Red Cross and collected pandemic prevention sup-plies worth RMB 1.43 million.Liaoning Market: Donated RMB 4.77 million to Shenyang charities.Sichuan Market: Donated RMB 800,000 and commonly used pandemic prevention supplies to local charities.Guangxi, Guizhou, and Yunnan Markets: Donated RMB 250,000 to the local community, as well as deliveredmasks, disinfectants, alcohol, and other pandemic prevention supplies to front-line sta?.Shanxi and Hebei Markets: Donated RMB 230,000 in pandemic prevention supplies. such as oximeters andprotective suits to local medical institutions and public transportation agencies, also contributing RMB 310,000 tocharities.Zhejiang Market: Donated a total of RMB 700,000 and delivered masks, protective suits, bottled water, and othersupplies.Gansu, Ningxia, Inner Mongolian, and Tibetan Markets: Donated a total of RMB 200,000 in addition to somedisinfection supplies.Chongqing Market: Donated RMB 70,000 to local charities and handed out pandemic prevention supplies.
Making Donations and Rushing to the Pandemic Front Lines
Targeted Poverty Alleviation
In 2020, Wuliangye created a characteristic targeted poverty alleviation model, helping its designated targets for supportin highly impoverished areas, including Litang County of Ganzi Prefecture and Pingshan County of Yibin City at the nation-al level, and the Xingwen County of Yibin City at provincial level. Wuliangye contributed quality e?orts to the reduction ofpoverty as scheduled, and its special grain brewing base, polar fruits, vegetables, and mushrooms industrial base, and thebamboo forest nursery base, have all become models of industry-driven poverty alleviation.
Following the maxim, "invested in by the company, operated by professionals, and shared by the poor," Wuliangye has fo-cused on industrial support, strengthening the building of talent teams for sustainable development in the supported areas,and striving to build a support model characterized by "Wuliangye + distinctive industries + village funded companies +consumer market + farmers."
Specialized Model for Promoting Long-Term Poverty Alleviation
Donations Made by Wuliangye andDistributors in the ght Against COVID-19
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Targeted Poverty Alleviation Model with Wuliangye Characteristics
The company's Party committee leads a team which regularly visits areas of support, goes to villages andhouseholds to carry out targeted assistance, communicates with locals, boosts their morale and discussesdevelopment, and solves real di?culties.? In the Qingshanyan Village of Xingwen County, we built a Party-community activity center which integrated a"Party building promotion base," "home for locals," and "hometown tree."? In Litang County, the joint Party branch of the Wuliangye Polar Fruits, Vegetables and Mushrooms Industrial Basewas established and divided into a production Party group and a sales Party group.
Developing industries with local characteristics that can benet people and help them achieve a "multiplier ef-fect" in overall economic and social development.? Deepening the construction of specialized bases of production: Wuliangye led the village to achieve a collective sales
revenue of more than RMB 18 million, with more than RMB 2.1 million of dividends distributed to the villagers.? Supporting the development of local industries: Wuliangye donated RMB 600,000 to help 3,100 households purchase
farming tools and RMB 500,000 to support the construction of cultural tourism projects in Litang County.? Expanding marketing channels for products: Wuliangye organized poverty alleviation-themed trade fair, launched
e-commerce platforms such as "China Poverty Alleviation-themed Products 832" and "Wuliangye Family," and pur-
chased more than RMB 32 million in products from poverty alleviation projects. We e?ectively drove the collective
revenue of the village up by more than RMB 18 million, with the per capita revenue of poor households increasing by
RMB 10,000 yuan.
Making school accessible to and a?ordable for poverty-stricken students through "education + training," andtraining poverty-stricken farmers with skills and helping them increase revenue.? Supporting the development of education: We donated more than RMB 12 million to build a digitally-enabled school
in Litang County and set up a fund for education in poor areas to signicantly improve the quality of education in sup-
ported areas.? Provide technical skills training: Poverty alleviation cadres stayed on the poverty alleviation front lines for a long time,
where they organized more than 40 evening classes for farmers and herders, guiding them to participate in the opera-
tion and management of collective village industries, and trained them with practical skills to increase their revenue.
We continue to optimize rural production and living facilities and conditions, improving the basic publicservice system, and solidifying the foundation of local economic development through road construction,farmhouse insurance coverage, and village-level projects.? Supporting the construction of rural roads: From 2018 to 2020, we earmarked RMB 300 million to plan and build
nearly 300 "Wuliangye Rural Revitalization Industrial Roads," totaling 105,402 kilometers. Donated special funds
to support poverty alleviation and disaster relief in Ganzi, Liangshan, and Aba Prefectures.? Promoting the improvement of human living environments: We donated RMB 700,000 to Pingshan County to
support the construction of village projects, with a focus on the improvement of village appearance, repair and
reinforcement works, and facilities for a "1+6" activity center.? Promoting farmhouse insurance: We donated RMB 1 million to help farmers and herders in Litang County insure
their farmhouses and establish a mechanism to protect 10,000 farmers and herders against damage to their per-
sonal property.
Party building leads the way and the prospects of development look brighter
Empowering production and marketing and expanding industrial development
Solidifying foundations and tackling development problems
Breaking down barriers in development
Cohesive Power of Party Building to PromoteModern Rural Governance
zEstablish a Party building front to create synergis-tic relations among people
zBuild a strong base and give play to the advan-tages of the organization
zPromote village-enterprise joint Party building tostrengthen interaction and integration
Wuliangye constructs a long-term market-oriented mechanism for poverty alleviation and promotes the e?ectiveconnection of poverty alleviation achievements and rural revitalization.
Build agricultural bases to develop specialized agricul-tural industry and increase revenue for farmers
zBuild a special grain brewing base (1 million mu) for use bythe company's main business
zBuild a polar fruits and vegetables (shiitake mushroom) ag-ricultural production center with the natural fertile resourcesof the Tibetan plateau
zBuild a bamboo forest (nursery) industry demonstrationbase in an alpine forestCapitalize on investment and optimize mecha-nisms to unite with farmers, promote agriculture,and share benets
zCapitalize on investment and share dividends
zUse capital to exploit resources and adopt large-scale production for revenue increases
Commercialize products and open up the consumermarket to the poverty alleviation industry
zStrengthen the branding of specialized products
zExpand the marketing network
zConsolidate channel building
Train and expand a layered rural talent team
zO?er nancial aid to poverty-stricken students andnurture reserve talents
zTrain professional farmers and industrial workerswith technical knowledge
zCultivate management talents with practical training
zStrengthen endogenous power by alleviating pover-ty through culture
Characteristic Long-Term Poverty Alleviation Mechanism
Fulfilling Corporate Responsibility with Poverty AlleviationPractices
Industrial poverty alleviation
RMBmillion
Industrial povertyalleviation2,284
RMBmillion
Infrastructure-basedpoverty alleviation
RMBmillion
Infrastructure-basedpoverty alleviation
RMBmillion
Consumption-basedpoverty alleviation
32.27
RMBmillion
Consumption-basedpoverty alleviation
81.76
RMBmillion
Education-basedpoverty alleviation
12.47
RMBmillion
Company investment in poverty alleviation via industry,
infrastructure, consumption, and education in 2020
The company's investment in poverty alleviation through industrial production,
infrastructure projects, consumption and education from 2015 to 2020
Education-based povertyalleviation
82.05
RMBmillion
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Investment in the Wuliangye Poverty Alleviation ProjectIn 2020, Wuliangye invested and integrated RMB 478 million as assistance funds.From 2015 to 2020, the invested and integrated assistance funds totaled RMB 2.778 billion, and beneted morethan 150,000 poverty-stricken people.Industrial Poverty Alleviation ModelBases for special grain brewing, polar fruits and vegetables, and a bamboo nursery.
Performance of thePoverty Alleviation Project
Awards:
Excellence in Poverty Alleviation in China byPeople's DailyTop 50 Cases of Enterprise Poverty Alleviationby the State Council Leading Group of PovertyAlleviation and Development2019 Advanced Targeted Poverty AlleviationProvincial-Level Unit of Sichuan Province2020 Golden Bull Award for Targeted PovertyAlleviation by China Social Responsibility 100Forum
Wuliangye Road to Rural Industry RevitalizationBy the end of 2020, Wuliangye had granted RMB 235 million in total to supported districts and counties, and built 763 ki-lometers of roads, boosting the rapid development of rural industries. These measures beneted more than 3,000 house-holds located along the roads and further enhancing the villagers' sense of happiness and satisfaction.Supporting Poverty Alleviation in YibinWuliangye donated RMB 18.58 million to the Aba Prefecture Charity Federation, Yajiang County Red Cross, XinlongCounty Red Cross, and Leibo County Red Cross for the purchase of 233 vehicles to be used in poverty alleviation and di-saster relief e?orts.Helping Liangshan Shake O? PovertyWuliangye donated RMB 1 million to support women from registered poor households in poor counties of Liangshan Pre-fecture to participate in the 2020Yi-themed public welfare campaign, which saw them making Yi embroidery products. Italso donated RMB 1 million to establishing the "Wuliangye Leibo Education Development Fund," which is set to be usedfor the development of education in Leibo County and as incentives for teachers and students in Leibo County.
Wuliangye's Donations to Poverty Alleviation Projects
The People's Daily reported Wuliangye's e?orts in poverty alleviation and targeted poverty alleviation
In recent years, Yibin WuliangyeGroup Co., Ltd. has thoroughly imple-mented the decisions made by the CPCCentral Committee and the State Councilon poverty alleviation. Seeing povertyalleviation as an essential and obligatorysocial responsibility, Wuliangye is fullyengaging its advantages as a corporationto undertake the task of targeted povertyalleviation. At present, Xingwen Countyin Yibin City, Sichuan Province, LitangCounty in Ganzi Tibetan AutonomousPrefecture, and Pingshan County in YibinCity, Sichuan Province, the subjects for thecompany's assistance, have all been liftedout of poverty. In the process of poverty al-leviation and development, it always sticksto the principles of "being site-specific,targeted, and e?ective with multiple mea-sures." It actively practices and exploresnew models for poverty alleviation work inbase construction, industry building, con-sumption assistance, education povertyalleviation, fully unleashing the vitality ofgrassroots governance and building a setof targeted poverty alleviation models tohelp poor areas shake o? poverty. Located in the Wumeng Mountains,Xingwen County of Yibin City was onceone of the 88 poverty-stricken countiesof Sichuan. Restricted by its natural, geo-graphical, historical, cultural and economicconditions, local industry had long laggedbehind and the revenue of the locals wasextremely low. Since 2015, Wuliangye hasset up a leading group for poverty allevia-tion and development, selected cadres tobe in charge of poverty alleviation work,and assigned them to the area. Throughestablishing industrial bases capableof exploiting local resources, promotingindustrial production through purchase inlieu of donation, providing skills training tohelp poor households get employed, andother measures, it offers targeted assis-tance to help the local community establishcompetitive industries and broaden sales
channels, and in doing so has achievedgood results. Located in the northeast ofXingwen County, Qingshanyan Villagehas a total population of 1,626. With 89registered poor households and 375people living below the poverty line, Qing-shanyan Village only generated revenuefrom traditional planting and breeding.In order to help locals increase revenue,Wuliangye actively supported the develop-ment of local bamboo industry and madea targeted investment of RMB 1.25 millionin Qingshanyan Village, which financedthe construction of a of bamboo forest(nursery) industrial demonstration base inQingshanyan. With an area of 1,100 muof young bamboo, the demonstration basebenets nearly 100 households, who havebecome shareholders in their land and arecooperating with the village-owned enter-prise in following a "supporting company+ village-owned enterprise + cooperative+ farmers" development model. On top ofthe development of bamboo industry, otherdiversified industries have also been in-troduced, including bamboo stone bonsai,underwood planting (bamboo fungus andred pine mushroom) , underwood breeding(free-range black-bone chicken and organ-ic eggs) , and other affiliated industries.Now, these green bamboo forests in themountains have become "cash trees" forthe villagers. In addition, Wuliangye participatesin the project by means of land poolingand withdraws 10% of project sales asvillage collective revenue in order todrive the development and growth of thecollective village economy. At present, ithas led the village collective economy toachieve a revenue of nearly RMB 700,000,with nearly RMB 100,000 in dividendsdistributed to the villagers in the form ofequity, in addition to employment for poorvillagers and the benet of revenue beinggenerated right in the village. To supportindustrial development, the company also
helps broaden sales channels and mar-kets while assisting with the branding ofspecialized products in poverty alleviationprojects. Wuliangye donated RMB 3 millionto Litang County and integrated more thanRMB 16 million to assist in the constructionof the polar fruits and vegetables (shiitakemushroom) base, while taking the lead inestablishing a village collective asset man-agement company (Litang County Shang-mayan Village Collective Asset Company) ,to boost the economic development of thispoverty-stricken area. The polar fruits andvegetables base produces 700,000 bagsof shiitake mushrooms and 300,000 bagsof fungus annually with an output valueof RMB 15 million, provides more than 80jobs, distributes more than RMB 1.5 millionin dividends to the villagers, and increasesthe per capita revenue of poor householdsby more than RMB 20,000. The Wuliangye team stationed in thevillage is exploring a promising develop-ment path leading to long-term prosperityfor the locals. Over the years, focusingon national strategies such as targetedpoverty alleviation and rural revitalization,the company has been exploring way toinnovate the model of poverty alleviationand long-term mechanisms. In August2017, it took the lead in establishing RuralIndustrial Integration and Development In-vestment Fund Management Co., Ltd. andestablished the Rural Revitalization De-velopment Fund. Focusing on Baijiu, tea,bamboo forests, specialized grain brewingbase construction, and other elds, it car-ried out in-depth exploration and promotedthe integrated development of primary,secondary, and tertiary industries and theconstruction of rural revitalization demon-stration areas. By integrating and upgrad-ing competitive and specialized industriesand creating leading brand enterprises,it has removed bottlenecks in agriculturaland rural development and driven agri-cultural e?ciency and increases in farmer
Tailored Measures Promote Targeted Poverty Alleviation
revenue. "Knowledge is the cure to poverty."Find the right "remedy," eliminate the"root causes of poverty," and embark ona "new path." In order to prevent povertyfrom passing down to future generations,Wuliangye vigorously supports the de-velopment of education in impoverishedareas by donating money, constructingschool buildings, providing teaching aids,books, etc. It also helps nurture new tech-nical talent in poor areas through industrialtechnology training and building povertyalleviation workshops. Luorong Zhima isa poverty-stricken student from Zequ Vil-lage, Gaocheng Township, Litang County.She lost both her parents and had beenliving with her grandfather and aunt sincechildhood. In 2016, the family lost theirsource of revenue when her grandfatherpassed away. Three years later, LuorongZhima was facing the fact that she wasunable to accept a university o?er becauseof poverty. When she was at her wits' end,Wuliangye reached out to her. LuorongZhima became one of the 20 college stu-dents who were granted a scholarship thatyear by Wuliangye, and was nally able togo to university. In addition, Wuliangye also continuedto inspire farmers' creativity and enhanceagricultural and rural productivity. Throughtechnical training at industrial bases, eve-ning classes for farmers, and other means,it helped build local educational and train-ing systems, cultivate professional farmersand industrial workers for contributing toregional industrial and economic develop-ment, while steadfastly promoting povertyalleviation in poor areas and waging abattle against poverty.
Supporting Pingshan CountyWuliangye donated RMB 600,000 to the construction of a new industrial road for Jieji Village in Pingbian Yi AutonomousTownship, which will make more than 3,000 mu of woodland resources available and increase the annual revenue of vil-lagers by a total of RMB 2.4 million. It also donated RMB 1 million to supporting the construction of public facilities andindustrial plantation areas in two townships, which are expected to directly benet more than 1,500 people, including morethan 620 villagers living below the poverty line.Supporting Gongxian CountyWuliangye donated RMB 100,000 to helping Zhongxin Village in Gongquan Township, Gongxian County build a "VillagePolice O?ce" to oversee security management in Zhongxin Village. It covers a radius of 26.8 square kilometers, including15 villager groups, 1,553 households, and 5,496 people.Supporting Litang CountyWuliangye donated RMB 2.6 million to fund farmhouse insurance for farmers, construction of science museums in modernindustrial parks, procurement of farming tools for farmers and school uniforms for students in Litang County, donated RMB
2.19 million to help Litang Middle School build digitally-enabled classrooms, and donated RMB 100,000 to fund pover-
ty-stricken college students in Litang County.
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CasesOn December 3, Wuliangye held the "purchase in lieu of donation" distribution ceremony dividend and scholarship forpoverty-stricken college students in Litang County at the polar fruits and vegetables (Shiitake) base in Litang, whichit itself funded. A total of RMB 500,000 in dividends was distributed to 30 households in Shangmayan Village, MulaTownship, and RMB 100,000 in scholarship money was distributed to 20 poverty-stricken college students in LitangCounty. The poverty alleviation project team also sent 500 sets of brand-new school uniforms to students of local ele-mentary schools in the town.
The "purchase in lieu of donation" distribution ceremony dividend and scholarship for poverty-stricken col-lege students in Litang County held by Wuliangye
Yang Yunxia, chairman of the board of supervisors of the company, distributed scholarships to poverty-stricken
college students in Litang County
and dividends to 30 households in Shangmayan Village, Mula Township
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In September, construction was completed on the digitally-enabled classrooms in Litang Middle School donated byWuliangye (RMB 2.19 million) , e?ectively helping students build a modern learning and communication platform sothat they have access to the same educational resources as those in more developed areas.
On April 13, Wuliangye Qingshanyan Bamboo Nursery Industry Demonstration Base Forestry Industry held a stockdividend distribution conference. Qingshanyan Village withdrew nearly RMB 100,000 of revenue, and distributedthem among 89 poverty-stricken households with each household receiving RMB 1,000-2,000 in dividends based ontheir respective stock holdings.
Digitally-enabled classrooms in Litang Middle School funded by Wuliangye
Wuliangye Qingshanyan Bamboo Nursery Industry Demonstration Base Forestry Industry Stock DividendDistribution Conference held
The digitally-enabled classrooms in Litang Middle School were put into use
Distributing stock dividends among 89 poverty-stricken households in Qingshanyan Village
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zThe company organized youth volunteers to assist community workers in conducting pandemic preventionand control services, such as pandemic hazard identication, personnel registration, and distribution of pan-demic prevention brochures to more than 1,300 households.
zWuliangye launched the "Wuliangye Volunteer Service in the Community" campaign: Providing services suchas health consultation, blood pressure measurement, body temperature measurement, height and weightmeasurement, and small household appliance repairing for community residents.
zCaring for the elderly and children, guiding tourists, encouraging civilized behavior, reminding people of tra?csafety, environmental protection, and other "Learn from Comrade Lei Feng" volunteer services.
zBlood donation: During the pandemic, 311 people in the company donated blood. In 2020, the company againwon the 2018-2019 National Blood Donation Promotion Award, and 33 people won gold, silver and bronzemedals for the 2018-2019 National Blood Donation Devotion Award.
zOrganizing examination support initiatives: Nearly 300 franchisees nationwide responded to the company'scall to provide o?-site services for candidates and their parents during national entrance examinations, includ-ing providing rest areas, free bottled water, psychological counseling, and other services in over 100 cities in15 provinces nationwide.
"Learn from Comrade Lei Feng" Campaign
The company's Youth League Committee carried out a series of youth volunteer service activities that focused on learningfrom Comrade Lei Feng, serving the community, and caring for outdoor workers.
Yang Yunxia, Chairman of board of supervisors of the group, has been distributing summer sup-
plies to young volunteers o?ering outdoor services.Supporting the development of civilized citiesWuliangye selected outstanding volunteers to visit 737 households, distributed 891 copies of publicity materials, and con-ducted 1,189 questionnaire surveys in target communities for the promotion of civilized urban development and allocatedspecial funds to communities for pavement renovation and community appearance improvement. In doing so, Wuliangyeaimed at deepening the "a hundred things to build a civilized city" campaign and helping Yibin City win the "National Civi-lized City title.
Volunteering and building a harmonious communityCharities
Wuliangye continues to support community construction, actively participates in charities, and devotes itself to demon-strating the social responsibility of a leading enterprise in the liquor industry through exemplary actions.
Wuliangye established volunteerservice stations at the visitor centerand alcohol culture exhibition cen-ter.
It performed volunteer servicessuch as promoting knowledgeof building a civilized city and ofprotecting the environment, con-tributing a total of more than 3,000service hours.
It has organized more than 2,500volunteers to give guidance on civ-ilized behavior, care for the elderlyand children, and other volunteerservices, contributing a total ofmore than 4,400 service hours.Promoting community knowledge of building a national
civilized city
Organizing volunteer services to upgrade public
environments
EstablishingVolunteerServiceStations
CommunityVolunteer
ServiceActivities
Scenic Area
Volunteer
ServiceActivities
CasesFrom December 8 to 9, the company held a two-day poverty alleviation-themed trade fair, in which more than 80kinds of products within the poverty alleviation project, such as the red matsutake mushroom, bamboo fungus, andshiitake mushroom were presented from five counties under the company's assistance, including Xingwen andLitang, with total sales amounting to RMB 410,000.
Chinese New Year Trade Fair was held, focusing on poverty alleviation
Chinese New Year Trade Fair focusing on poverty alleviation
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Supporting the military and promoting civil-military integration
Wuliangye thoroughly implements the guidelines of the 19th CPC National Congress and General Secretary Xi Jinping'sargument on "double support" work in the new era, fullls its social responsibility to support national defense and armybuilding, vigorously promotes the development of civil-military integration, carries out concrete work to support the armyand give preferential treatment for families of servicemen, attaches great importance to veterans, protects the legitimaterights and interests of servicemen and their families, implements the idea of a strong military in the new era, and opens upnew dimension in militia building.
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Wuliangye carried out military-enterprise integration and collaborative development activities under the new norms,donating air conditioners, groceries, and other supplies in total worth over RMB 335,000 yuan. Wuliangye carried outpaired collaborative development and mutual learning exchange activities to support the construction of grass-rootscultural and sports facilities for the troops, and donated greeting supplies worth RMB 12,000 yuan.
Wuliangye conducted symposiums and greeting activities for veterans and families of military martyrs to convey careand holiday greetings. During the reporting period, Wuliangye paid visits to 3,341 active servicemen and veterans,365 retired o?cers, and 233 families of active servicemen, issuing greeting products, greeting money, and greetingletters totaling RMB 2.3634 million.
Visiting and conveying greetings to troops in Yibin and launching paired greetings
Visiting veterans, families of active servicemen, and other subjects enjoying preferential treatment
Tang Bochao, Deputy General Manager of Yibin Wuliangye, is attending a military-enterprise integration and
collaborative development activity
Tang Bochao, Deputy General Manager of Yibin Wuliangye, is visiting veterans and families of the martyrsWuliangye was awarded the "Advanced Unit for Supporting the Army andGiving Preferential Treatment to the Families of Servicemen"
zAccording to the arrangement for the dual support work of municipal and district governments, Wuliangye visitsand conveys greetings to troops in Yibin during the Spring Festival, the Army Day, and other major festivals.Visiting and Conveying GreetingsWuliangye's key work of double support and collaborative construction
zThrough issuing greeting letters, greeting money gifts, and symposiums and other forms, Wuliangye vigorouslycarries out activities to greet veterans and the families of servicemen. Wuliangye advocates the idea that "ser-vicemen should be respected by the society" and promotes military-enterprise construction and civil-militaryintegration in current times and under new norms.
Sincere Greetings
zIn accordance with the "Yibin City's Work Plan for the Inspection of National Model City of Five Create and Dou-ble Support Program" notice, the company has created an atmosphere of support for the army in major attrac-tions and along the roads, promoting the building of Wuliangye service stations for veterans.Building Service Stations
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Wuliangye put forward and implemented the slogan of "making veterans the pillar of corporate development" and setup a veterans' service station that follows the requirements of being "organized, institutionalized, sta?ed, funded, andsupported." It became the rst state-owned enterprise in the province to set up a service station for veterans.
On October 15, the annual meeting of the Alcohol and Social Responsibility Promotion Committee & the 2020 Na-tional Responsible Drinking Awareness Week press conference, hosted by China Alcoholic Drinks Association andco-organized by Wuliangye, was held in Chengdu.As the 2020 Chairman of the Alcohol and Social Responsibility Promotion Committee under China Alcoholic DrinksAssociation, Li Shuguang, Chairman of Wuliangye Group Company and Party Secretary of Yibin Wuliangye, deliv-ered a speech on "Moderate Drinking for a Happy Life" and promoted new trends of responsible and healthy alcoholconsumption.Wuliangye has comprehensively im-proved the level of militia building andthe militia brigade has participatedin several emergency tasks such asearthquake relief, flood control, andrescue, firefighting and rescue, andemergency response to the enthusi-astic praise of military and local com-munities. During the reporting period,Wuliangye invested a total of RMB
1.2904 million in armaments and train-
ing equipment for backbone militia.
Strengthening the services for and the management of the company's veterans
Participating in the 2020 National Responsible Drinking Awareness Week press conference
Improving the level of militia building
Wuliangye Veterans' Service Station
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of Yibin Wuliangye, is attending the annualmeeting of the Alcohol and Social Responsibility Promotion Committee under the China Alcoholic Drinks Association
& the 2020 National Responsible Drinking Awareness Week press conferenceWuliangye backbone militia team building
Caring for children and promoting equal access to education
In 2020, Wuliangye Charity Foundation actively contributed to poverty alleviation through education, boosting the develop-ment of educational causes and caring for the next generation.
Responsible DrinkingWuliangye cares about the health of consumers, cultivating habits of appropriate, moderate drinking, advocating new con-cepts of civilized and responsible drinking, and encouraging the real spiritual enjoyment of drinking.
Wuliangye Education Fund Program: In 2020, Wuliangye Education Fund donated RMB 2 million to reward and
fund outstanding local students and educators in Yibin with nancial di?culties.
Wuliangye Education Rewards Program: Wuliangye Charity Foundation donated RMB 7 million in 2020 to reward
outstanding teachers and students at Sichuan University of Science & Engineering.
Caring for the Next Generation: Wuliangye Charity Foundation and the Yibin Care for the Next Generation Founda-
tion carried out a cooperative funding program that donated RMB 1.5 million over three years exclusively to supporting
the implementation of the Yibin Care for the Next Generation Foundation's public welfare and charity programs.
Promoting Equal Access to Education
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On November 26, the Sichuan Session of the "2020 National Responsible Drinking Awareness Week" was heldin Chengdu, and Tang Bochao, Deputy General Manager of Yibin Wuliangye, attended the event and delivered aspeech.
"Wuliangye inherits a thousand years of heritage and brews ten thousand years of abundance!" - Wuliangye held thegrand 2020 China International Famous Liquor Expo & Wuliangye 24th Liquor Sage Ceremony on December 17, 2020.As a representative of traditional liquor rituals and cultural events in the liquor industry, the Liquor Sage Ceremony isfocused on "celebrating the artisan spirit," "celebrating the successors throughout generations," and "celebrating thehistory of brewing." It aims to pay tribute to the history, inherit the artisan spirit, and promote Baijiu culture.
Co-organized the Sichuan Session of the 2020 National Responsible Drinking Awareness Week
The 2020 China International Famous Liquor Expo & Wuliangye 24th Liquor Sage Ceremony held byWuliangye
CasesActively inheriting and promoting vintage Baijiu culture
Tang Bochao, Deputy General Manager of Yibin Wuliangye, is attending the Sichuan Session of the 2020 National
Responsible Drinking Awareness Week
Wuliangye held the 2020 China International Famous Liquor Expo & Wuliangye 24th Liquor Sage Ceremony
The Wuliangye Vintage Baijiu Collectors Club of the Famous Baijiu Collection Committee under China Alcoholic
Drinks Association was established
Promote Baijiu CultureWuliangye has always been dedicated to inheriting and promoting excellent traditional culture, supporting the explorationand development of culture, creating new knowledge communication and application scenarios, inheriting history, culturalrelics, and craftsmanship, carrying out in-depth research on Chinese alcohol culture, and promoting the modern transfor-mation and international communication of Chinese Baijiu culture.
On December 16, Wuliangye Vintage Baijiu Collectors Club of the Famous Baijiu Collection Committee under China
Alcoholic Drinks Association was established. The club will dig deep into Wuliangye's vintage Baijiu culture and his-
tory, exploring its history and showing the charm of Wuliangye's long-standing vintage Baijiu.
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On September 10, an overseas delegation of the National Committee of the Chinese People's Political ConsultativeConference (CPPCC) visited Wuliangye spreading Chinese Baijiu culture all over the world.
From December 6 to 8, the "2020 5th AFBC and the 4th H.T. Agriculture & Food Business Conference" was held inZhengzhou. Wuliangye, with the 8th generation Wuliangye, Classic Wuliangye, and Wuliangye Crystal series, wonrst prize of the 2020 China Food Industry Science and Technology Award competition and also received the "TenYears of High-Quality Development in Chinese Liquor Industry Award," demonstrating the value of its "Aroma of aGreat Country" philosophy.
On December 9, 2020, the 4th Chengdu InternationalPoetry Week was hosted by the Chengdu Literary Federa-tion and Wuliangye in Chengdu under the guidance of theSichuan Writers Association and the Poetry Committeeof the China Writers Association. Wuliangye participatedintensely in the activities of Poetry Week, using Baijiu asa medium and fusing it with poetry to promote poetry andBaijiu culture at the same time and convey the beautifulvision of building a shared human destiny community in thenew era.
The 3rd China International Import Expo (CIIE) was heldat Shanghai from November 4 to 11. As a core supportenterprise for CIIE, Wuliangye actively participated in CIIEsessions and presented the intangible cultural heritageof traditional Wuliangye production techniques and majorWuliangye products, showing the unique charm and richculture of Chinese Baijiu to international visitors.
Overseas Delegation of the National Committee of the Chinese People's Political Consultative Conferencevisited Wuliangye
Wuliangye made a powerful appearance at the 2020 AFBC, showcasing "Aroma of a Great Country"
The 4th Chengdu International Poetry Week held by Wuliangye
Deeply participating in the 3rd CIIE to enhance international imports with Chinese Baijiu
Zeng Congqin, Chairman of Yibin Wuliangye, is receiving a delegation of the National Committee of the Chinese
People's Political Consultative Conference
Zhao Dong, Deputy General Manager and Deputy Chief Engineer of Yibin Wuliangye, was attending the 2020 5th
AFBC and 4th H.T. Agriculture & Food Business Conference
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As the exclusive sponsor of the third season "Forbidden City New Arrivals," Classic Wuliangye joined hands with theForbidden City to promote the transmission of and innovations in traditional Chinese culture. Wuliangye, with its 653-year old early Ming Dynasty cellar, is highly comparable to the 600-year old Forbidden City in terms of their respec-tive proles, statuses, history, inclusiveness, artisanship, cultural heritage, and contributions to innovation. Buildingon six hundred years of history, Wuliangye and the Forbidden City have together witnessed the continuity of legendsand revitalization traditional Chinese culture!
Wuliangye joined hands with "Forbidden City New Arrivals" to promote traditional Chinese culture
Classic Wuliangye sponsoring season three of "Forbidden City New Arrivals"
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Environmental ManagementSustainable ProductionEco ParkTop-Quality WarehousesHealth and Safety
Five qualitiesreect the essence of nature
Good Baijiu needs a unique ecological environment. Wuliangye takes to heart the nat-ural laws of ve elements "gold, wood, water, re and earth," integrating the essence ofnature into production, following a green development strategy, integrating ecologicalconservation with the social responsibility system, and pioneering the development ofcircular economy in the Baijiu industry. In doing so, Wuliangye has made Baijiu a bridgebetween man and nature and is writing a new chapter of the history of harmonious co-existence of man and nature.
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Environmental Protection Systems
zEnergy management system
zEnvironmental management system
zGreenhouse gas management systemEnvironmental Protection Regulations
zAccording to national laws, regulations, and requirements of local government and the industry, and taking intoaccount the company's actual situation, Wuliangye formulated "Environmental Protection Management System","Energy Management System", "Contingency Plan for Environmental Emergencies", "Management Measuresfor Environmental Monitoring Information Disclosure", "Steam Management System (Trial) ", "Energy and Envi-ronmental Protection Management Regulations for Construction Projects", and other documents.
Environmental ManagementWith the "low-carbon, circular and ecological development" policy, Wuliangye is the rst in the industry to propose thegoal of building a "zero-carbon liquor enterprise" and actively promote the development of such a strategy. In addition,the company continues to improve its system support and environmental protection system, actively carrying out training,emergency drills, daily inspections, and other environmental protection practices to ensure that environmental protectionmanagement is carried out in an orderly and e?cient manner.
Implementation of Wuliangye's Environmental Protection System
Wuliangye implemented the target responsibility system and rewards & punishments system,also signing a target responsibility agreement in early 2020 to implement responsibilities andwork tasks at all levels.Setting targets
Wuliangye organized 1,976 daily inspections, covering key environmental risk managementpoints throughout the company, organized six special inspections covering wastewater,environmental protection equipment, and facilities, and subsidiaries, and supervised andrectied all problems.
Risk identication
Wuliangye conducted 8 special trainings on the "Law on the Prevention and Control of Envi-ronmental Pollution by Solid Waste," standardized management of hazardous waste, prepa-ration of contingency plans for environmental emergencies, and other issues, which wereattended by more than 50,000 participants.Environmental
protection training
Wuliangye carried out the Wuliangye Industrial Park planning and environmental impactassessment through new renovation and expansion projects, such as special brewing grainsilo and milling automation upgrading.
Environmental im-
pact assessment
Wuliangye established and improved the "Risk Assessment of Environmental Emergen-cies," "Environmental Emergency Resource Survey Report," and "Comprehensive Re-sponse Plan for Environmental Emergencies." In 2020, it carried out 27 emergency rescuedrills for liquor cellar leaking, pump station overow, and waste mineral oil leaking, etc.Environmentalemergency responsemanagement
CasesWuliangye concluded strategic cooperation agreements with China Energy Conservation and Environmental Pro-tection Group, Sino Light Group, and Sichuan Energy Investment, according to which they shall give full play to thetechnical, industrial, and platform advantages of the partners and commit to multi-level and all-round cooperation inenergy conservation and environmental protection planning, clean energy development, and utilization, and other ar-eas, adhering to sustainable and green development concepts for high-quality development.
Strengthening external strategic cooperation to promote green and harmonious development
Jiang Wenge, Director of Yibin Wuliangye, attended the signing ceremony of the cooperation agreement with China
Energy Conservation and Environmental Protection Group, Sino Light Group, and Sichuan Energy Investment
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On October 28, the deputy director of the Department of the Atmospheric Environment of the Ministry of Ecologyand Environment, a member of the Party group and the chief engineer of Sichuan Department of Ecology and Envi-ronment, visited Wuliangye to inspect air pollution prevention and control work. The inspection group inspected andissued directions to Wuliangye's wastewater one-stop biogas comprehensive utilization power station, natural gasPhase I boiler room, and environmental protection ecological wetland, fully recognizing the value of its environmentalprotection work.
Deputy Director of the Ministry of Ecology and Environment inspecting Wuliangye's environmental protection work
Tang Shengyun, Deputy General Manager of Yibin Wuliangye, accompanied Deputy Director of the Ministry of Ecol-
ogy and Environment on an inspection of Wuliangye's environmental protection work.
Environmental ProtectionSystems and Regulations
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SOCIAL RESPONSIBILITY REPORT2020Sustainable ProductionWuliangye has taken multiple measures to build a sustainable platform for all grain brewed and solid-state fermented Bai-jiu. The application rate of sustainable manufacturing technology increased by 33.26%, the application rate of sustainablemanufacturing process increased by 24.92%, and the impact of sustainable manufacturing on resource and environmentdecreased by 20.33%.
We promoted national, provincial, andmunicipal water saving laws and regu-lations and raised awareness of watersaving at all units.
Water SavingThe company organized "Golden Idea" campaign to reduce emissions. All employees brainstormed to save energy andreduce emission, and took various measures to reduce waste of water and promote sustainable development.
Fresh Water Consumption in the Past Three YearsYear 20188.19 million cubic meters
8.16 million cubic meters
8.05 million cubic meters
Year 2019Year 2020
Energy Conservation and Emission ReductionWe only purchased equipment above grade-two energy e?ciency, controlled high-power equipment for o?-peak use andreactive power compensation, strengthened the supervision of boiler operation, adjusted heating mode, enhanced trainingand assessment, and improved the reward and punishment mechanism to e?ectively reduce energy consumption.
We strengthened training and on-site inspection and assessment, controlled high-power equipment for o?-peak use,and reduced maximum power demand.We purchased 38 electric buses, which can reduce annual CO2 emission by about 1,150 tons in replacing dieselbuses. We purchased a total of 15 tankers and dump trucks for dangerous goods that meet "China VI" emissionstandards to further reduce carbon emissions.We actively developed and utilized biomass energy, completing the largest biogas power demonstration project withbrewing wastewater of a solid Baijiu producer in China. By comprehensively using biogas generated from anaerobicfermentation at Wuliangye wastewater station, we reduced greenhouse gas emissions by about 9,300 tons in 2020.
Water RecyclingWe carried out a pilot project to recycle bottle washing water in the production process. During the reporting period,the bottle washing water recycling pilot project was completed with a recycling rate of around 70%.Heat RecoveryWe carried out the cooling water heat recovery program demonstration, which uses the cooling water waste heat assupplementary heat for boilers or converts it into high-grade heat energy through heat pump technology to reduceheat loss. We upgraded natural gas boiler condensers to improve the e?ciency of using ue gas waste heat.Vinasse RecyclingWe built the Wuliangye vinasse biomass heat-electricity cogeneration project. During the reporting period, the proj-ect obtained a construction permit and met preliminary conditions for construction.
Resource RecyclingThe company has actively introduced advanced processes for resource recycling, promoting a circular economy, and ac-celerating the development of conservation-oriented enterprises.
Energy Conservationand EmissionReduction Measures
Measures for aCircular EconomyWuliangyeWater Saving
Initiatives
Assessmentand Supervi-sion
Daily In-spection
Technolo-gy Appli-
cationWater Sav-ing Promo-
tion
SystemUpgrade
We strictly followed the nation-al, provincial, municipal, andindustrial water quotas andstrengthened the supervisionand assessment of water quo-tas for core business.
We identied loopholes andweak links in managementand rectified problems in atimely manner.
We have promoted watersupply system improvementprojects to upgrade watertreatment processes and wa-ter supply main pipe networks.
We strengthened the pro-motion and application ofadvanced water saving tech-nologies for new renovationand expansion projects of corebusinesses.
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SOCIAL RESPONSIBILITY REPORT2020Eco ParkIn 2020, Wuliangye fullled its responsibility of "macro protection" and further improved the planning of a green park. Itstrengthened the construction of the company's "three wastes" management system, capacity system, and ecological res-toration project in accordance with the new emission standards of the Min-Tuo watershed and the new requirements of na-tional water pollution prevention and control, maximally remedying the impact of the company's production and operationon the environment.
CasesThe Yibin Minjiang River Ecological Restoration Project is a key supporting project for the ecological wetlands andwater conservation areas in the upper reaches of the Minjiang River. With a total investment of about RMB 1.015 bil-lion, the project covered around 3,809 mu of land, including about 1,880 mu of land for greening and walking trails,creating favorable conditions for building a 5A Wuliangye scenic spot and preparing for the long-term development ofthe company.
Yibin Minjiang River Ecological Restoration Project (Anfu-Sipo Section and Hongyan Anfu Section)
Westgate Wetland
Atmospheric PollutionPrevention and Control
Water PollutionPrevention and Control
Solid Waste ManagementWuliangye has set up high-e?-ciency dust removal devices fordust-generating processes. Allboilers use low-sulfur naturalgas and low-NOx combustiondevices and all canteens areset up with high-e?ciency fumepuriers with daily exhaust gasmonitoring carried out accord-ing to regulations.According to the nationalemissions permit system andthe company's emissions per-mit, waste gas emissions in2020 were at 1.9948552 bil-lion cubic meters, with 14.02tons of sulfur dioxide, 149.1tons of nitrogen oxides, and13 tons of particulate matter.
All sewage is collected into thesewage station, where it is treat-ed in a closed manner to meetthe "Emission Standards for Wa-ter Pollutants in Minjiang Riverand Tuojiang River Watershedof Sichuan Province" and "Dis-charge Standard of Water Pol-lutants for Fermentation Alcoholand Distilled Spirits Industry."The wastewater emissions in-cluded in 2020 reached 3.7962million tons, with 75 tons ofchemical oxygen demand emis-sions, 1.6 tons of ammonia ni-trogen emissions, and 0.8 tonsof total phosphorus emissions.
It signed agreements with localgovernments to use vinasseas breeding feed, legally andcompliantly transferred and dis-posed of the four major types ofhazardous waste generated bythe company, and carried outfive transfers within the prov-ince.
A qualied third-party agency
was commissioned to dispose
of a total of 34,097.04 tons of
dewatered sludge generated
from each wastewater station
and deep treatment area.
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SOCIAL RESPONSIBILITY REPORT2020Top-Quality Warehouses
Wuliangye is committed to building a top-quality storage base for raw grains and unblended liquor with the introduction ofan intelligent agricultural system which promotes the improvement of planting management e?ciency and guarantees thequality of Baijiu from its source.Industrial Reciprocity and Building of Dedicated Grain Bases
Wuliangye cooperated strategically with grain enterprises to build its dedicated grain bases and acquired grains meetingstandards at prices higher than the market price, which ensures high quality, a stable supply of raw grains, and improvedfarmer revenues, thus nurturing the local agricultural economy and promoting rural revitalization.
CasesThe company launched "Learning farming techniques during the pandemic: livestreaming at the Wuliangye wheatproduction base," "Tracing Wuliangye: Livestreaming at Wuliangye's dedicated rice production base," and other lives-treaming events, which o?ered detailed instructions on crop management, planting techniques, plant protection prod-ucts and pest control at critical periods, providing guidance for farmer production and achieving a win-win situationwhere farmers increased production and the quality of raw grains was guaranteed.
Empowering farmers
"Learning farming techniques during the pandemic: livestreaming at the Wuliangye wheat production base" event
held by Wuliangye
Core DemonstrationStrategic Cooperation
With an area in Sichuan province of nearly 50,000mu, the "Core Demonstration" base grows sor-ghum, rice, wheat, and corn.It provides Wuliangye with high-quality brewinggrains and functions as variety research, plantingtechnology improvement, brand atmosphere cre-ation, and agro-tourism integration development,serving as an important model for supportingWuliangye's rural revitalization.
The "Strategic Cooperation" base is made up ofbases in northern and southern Sichuan Provincewhich grow more than 700,000 mu of sorghum,rice, wheat, and corn, as well as bases in An-hui, Jiangsu, Xinjiang, Inner Mongolia, and otherhigh-quality domestic production areas, which growmore than 300,000 mu of sorghum, glutinous rice,wheat, and corn.It was mainly built through cooperation with COF-CO, Sinochem Agriculture, China Resources, andother large state-owned backbone grain productionand warehousing enterprises.
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Wuliangye accelerated the adoption of an "Internet + safety supervision" model, establishing safety risk gradingcontrol and hazard identication and management system, production safety management information system, andhazardous operation approval system. In 2020, the company approved 27 "technology for safety" projects.
It formulated more than 30 production safety management rules and regulations, forming a safety managementsystem led by the "Production Safety Management System," supported by "Fire Safety Management Regulations"and "Production Safety Accident Emergency Management Regulations," and guaranteed by "Production SafetyManagement Performance Assessment Measures."
It built a three-level production safety management network. The rst level was the Production Safety Committee,consisting of the company's senior management and the person responsible for production safety in each unit. Thecommittee is responsible for the planning and organization of the company's safety management system and theformulation of the company's production policy and performance goals. The second level is the production safetymanagement departments at all levels, which consists of safety management departments and safety o?cers, andwhich strictly performs the company's overall safety management functions, providing organization, coordination,and guidance. The third level is the grassroots team of full-time and part-time safety management sta?, which man-ages and supervises work safety at the grassroots level.
Pottery Jar Aging and Upgrading Baijiu WarehousingIn order to improve Wuliangye's base liquor warehousing capacity and ensure alcohol can be stored for at least threeyears before bottling, thus further enhancing the competitiveness of the products, Wuliangye is actively upgrading thewarehousing capacity of its cellars and striving to build a leading unblended liquor warehouse in China with a capacity of 1million tons within the 14th Five-Year Plan period.
300,000-Ton Pottery Jar Aging Spirit Room ProjectWith a total investment of almost RMB 857 million, theproject covers a total area of 182 mu, with a total oorarea of 255,200 square meters. With the completionof 10 new pottery cellars and 80,000 pottery jars,unblended liquor storage capacity will increase by80,000 tons.Aging is an important part of unblended liquor produc-tion and plays an important role in stabilizing and en-suring the quality of unblended liquor. After commis-sioning this project, the quality of Baijiu will be furtherimproved, as will be the core competitiveness of thecompany's products.
Warehousing Project
Construction
360,000-Ton Blending and Warehousing ProjectWith a total investment of almost RMB 1.726 billion,the project covers a total area of 251 mu, with oorarea amounting to 135,000 square meters. Withthe completion of 14 semi-open cellars, unblendedliquor blending and storage capacity will increase by360,000 tons.Based on a traditional process and enhanced bytechnological upgrading and the introduction of var-ious advanced technologies, this project will furtherreduce the loss of the body of Baijiu during circula-tion, leading to an automatic and intelligent transfor-mation of traditional industry.
300,000-Ton Pottery Jar Aging Spirit Room Project (Phase I)
Health and Safety
Wuliangye actively promotes and practices system improvement around two major responsibility issues—production safetyand occupational health, working to ensure employee health and safety.Technology Empowers Production Safety
Wuliangye holds fast to the "people and life rst" concept for safe development and adheres to a "technology for safety"strategy, promoting in-depth implementation of three-year action plan for special rectication of safe production and thelisting system. We continue to carry out safe production practices, striving to prevent and resolve safety risks. In 2020, allproduction safety indicators in the company were satisfactory, with zero production safety accidents with serious injuriesor worse, and zero major or worse equipment safety accidents or re accidents.
Safety Work MeetingsThe company organizes production safety committee meetings and production safety review meetings to study and denethe focus of safety work and make specic arrangements in a timely manner.
Safety Management System and Strategic Guidelines
"Technology for Safety" Strategy
Production Safety Management System
Safety Management Organization Structure
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Health Management to Protect Employee HealthWuliangye conducted occupational health examinations, created occupational health monitoring files for employees,passed external audits of the occupational health and safety system, and actively carried out occupational disease pre-vention and control promotion and training in order to create an environment where the whole company pays attention tooccupational disease prevention and control.
Wuliangye carries outoccupational health exam-inations for employees todetect occupational con-traindications and suspect-ed occupational-relatedillnesses, taking measuresto prevent ill e?ects to em-ployees' health in as earlya stage as possible.
Each employee has his orher own health file underoccupational health guard-ianship. We analyzed theresults of medical exam-inations in the past yearsand have taken targetedcountermeasures.
According to the externalaudit for the occupationalhealth and safety system,the information of the oc-cupational health systemis complete and containsno non-conformities.
We make full use of bul-letin boards, WeChat,QQ, OA system, RTX,radio, LED, and other me-dia to conduct all-round,multi-angle promotions.
In 2020, the Company spent RMB 16.48 million on physical examinations received by 21,032 employees.The occupationalhealth examination rate was 98%. All employees were on record for the occupational health examination, and no occu-pational diseases were found. The health examination rate of on-the-job employees in contact with food was 100%, withhealth examination les are created for food workers.In 2020, the company passed the occupational health and safety management system audit , which was stable, e?ective,met the GB/T28001-2011 requirements and had good performance.
Production Safety ActivitiesThe company carried out a series of campaigns such as "Production Safety Month" and "119" Fire Fighting AwarenessMonth, organized a "Safety Publicity" tour, held safety knowledge contests for all employees, and sponsored first-aidknowledge training and drills, enhancing employee safety awareness and skills through multiple channels.
Emergency Management System
Wuliangye has set up a full-time re department consisting of 117 reghters and has built 36 micro re stations. Throughideological and political education, post training, equipment construction, and combat and command capability building,the company imposed strict rules on the re brigade and promoted standardization in its ranks.
Production safety training
"119" Fire Fighting Awareness Month event held by Wuliangye
Wuliangye Full-Time Fire Brigade
Production Safety TrainingWuliangye provides "preventive education"safety training and has built a 360-degree safe-ty training and education mechanism. In 2020,the Company provided safety training coursesto all its 45,221 employees, and 60 sessions to4,378 managing personnel from related compa-nies on safety and hazardous chemicals.
Occupational Health Management
Occupational healthexamination
Establishment of occu-pational health monitor-ing les for employees
External audit ofoccupational health
and safety system
Promotion and trainingof occupational diseaseprevention and control
Li Shuguang, Chairman of Wuliangye Group and Party Secretary of
Yibin Wuliangye, is leading a safety inspection team
Safety Inspection
Wuliangye implements "24/7/365" safety super-vision, ensuring all-round, all time, all-processsupervision throughout production and opera-tion. Its main measures include carpet inspec-tion, grid supervision, and daily inspectionscombined with special inspections, and otheractivities to implement full-area, full-coveragesafety controls at all production sites. In 2020,the company carried out 3,266 safety inspec-tions.
ExaminationHealth FileExternal AuditTraining
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SOCIAL RESPONSIBILITY REPORT2020
Looking back at 2020, in the face of severe challenges and major ordeals, Wuliangye upheld Xi Jinping Thought on So-cialism with Chinese Characteristics for a New Era, conscientiously implemented the decisions and plans of provincial andmunicipal governments, acted in solidarity, strove to succeed in pandemic prevention, control, and corporate development,and maintained steady growth.In the new era, Wuliangye will adhere to the general idea of seeking progress in a stable manner, build on the new devel-opment stage, implement new development concepted, and integrate itself into s new development pattern. It will focus onpromoting high-quality development and deepening structural reform on the supply side, with reform and innovation as thefundamental driving force, to meet the growing needs of the people for a better life. Wuliangye will open up new opportuni-ties and situations and write a new chapter of corporate development.
? On the energy supply side, we fully launched green energy supply, including biomasspower generation, vinasse recycling, and realized electricity, heat, and fuel recycling.? On the energy consumption side, we comprehensively promoted electric energy re-
placement and energy e?ciency improvement projects, and our comprehensive energyconsumption index reached an industry-leading level.? On the energy management side, we fully realized digitalization and created an "inte-
grated intelligent energy + carbon neutral + blockchain" digital application scenario.
? Accelerate the construction of an industry-leading science and technology research
and development platform and actively reach the high grounds in three major industryinnovations—Key National Baijiu Brewing Laboratory, the National Engineering andTechnology Center for Special Brewing Grains, and the National Baijiu Industry Inno-vation Center.? Continue to promote process innovation and technological innovation, intensify re-search into Wuliangye's health mechanisms, and promote intelligent brewing in a sci-entic and orderly manner.? Deepen digital transformations, build an e?ective mechanism for linking research, pro-duction, supply, and marketing, and continuously improve market resilience.
? Promote the continuous development and growth of industries in poverty alleviation
projects in counties and villages that have been lifted out of poverty, and help expandsales channels for products in poverty alleviation projects.? Strengthen the construction of infrastructure for industrial development and the devel-
opment of education and culture in areas that have been lifted out of poverty.? Enhance the ability of regions to consolidate the achievements of poverty alleviation
and endogenous development, and promote the organic connection between consoli-
dating and expanding the achievements of poverty alleviation and rural revitalization.
? Reinforce the innovation and breakthroughs in brand culture building.? Strengthen the upgrading and construction of strategic markets and key markets.? Underpin the recreation of the marketing process based on digitalization.
? Further consolidate traditional channels, develop group purchase channels, innovatenew channels for cross-border cooperation, and continuously improve channel protsand merchant protability.? Leverage the company's influence, industry associations and exchange activitiesto promote green development, quality improvement, and cultural inheritance in theglobal alcohol industry.
Ruralrevitalization
BrandMarketing
Channelconstruction
Industrial
Progress
Partyleadership
Safe production
InvestorRelations
Food safety
Consumer
ServicesInternalgovernance
Employee
Care
Charities
Zero-carbon
liquorenterprise
NewProducts
? Run the Party with discipline across the board and build an integrated anti-corruption
system.? Continuously implement the "ve projects" of solidifying foundation, forging soul, gath-ering wisdom, nurturing spirit, and correcting style, and deepening the Party buildingactivities characterized by "good prioritization, great climate, and shared development."
? Continue to highlight production safety, carry out a new rounds of overall recticationactions for production safety risks and hazards, and resolutely avoid production safe-ty-related accidents.
? Continue to standardize information disclosure and further improve the company's infor-
mation disclosure quality.? Continue to carry out proper investor relations management.
? Establish a sound food safety responsibility system, systematically sort out food
quality and safety management systems, improve food safety risk management ca-pabilities, and build a rm food quality and safety defense line with "four strictest"principles.? Continue to create a healthy, orderly, and high-quality market environment for con-sumers.? Accelerate the construction of after-sales service centers and continuously improveservice quality and consumer satisfaction.
? Accelerate the improvement of corporate governance structures, clarify authority and re-
sponsibility, and strictly follow the procedures and scope of "three boards and one man-
agement."? Accelerate the formation of a governance mechanism with clear roles and effective
checks and balances, and promote the modernization of the company's governance sys-
tems and capacity.? Adhere to strict compliance management, carry out in-depth risk prevention, control, and
elimination, improve management e?ciency, and activate corporate vitality.
? Promote the transformation of human resources from amount advantage to structuraladvantage and from a?air handling function to empowerment function.? Fulll the four basic tasks of selecting, nurturing, using, and retaining talent, and con-
tinuously deepen reforms of the selection and employment, management, and incen-tive mechanisms.
? Continue to mobilize volunteers in the company for community services and continueto support local communities and groups in need.? Strengthen e?orts to promote responsible drinking.? Actively participate in cultural exchange activities and explore and promote traditional
culture.
Future Outlook
Implementingresponsibility
strategy
Share thebenets ofdevelopment
Promoting
soundgovernance
Building aharmonious
society
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SOCIAL RESPONSIBILITY REPORT2020
Performance
IndexUnitYear 2020Operating revenueRMB billion57.321Total protRMB billion27.678Total pre-tax protRMB billion42.038Paying taxRMB billion23.520Earnings per shareRMB5.141
Total assetsRMB billion113.893Total cash dividends for 2019RMB billion8.540Research and development investmentRMB million131
IndexUnitYear 2020Total employeesPerson25,882Employment contract signing rate%100
Social insurance coverage rate%100Medical examination coverage rate%100Investment in employee trainingRMB million6.91Investment in assisting employees in
need
RMB million1.83
IndexUnitYear 2020
Exhaust gas emissionsbillion m?1.9948552Sulfur dioxide emissionsTon14.02Nitrogen oxide emissionsTon149.1Particulate matter emissionsTon13Wastewater dischargesmillion tons 3.7962Chemical oxygen demand emissionsTon75Ammonia nitrogen emissionsTon1.6Total phosphorus emissionsTon0.8
IndexUnitYear 2020
Investment for targeted poverty
alleviation
RMB million478Total donationsRMB million161Volunteer servicesPerson-time2,796
Economic Performance
Social Performance
Employee Performance
Environmental Performance
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SOCIAL RESPONSIBILITY REPORT2020Index
Content of the ReportCASS-CSR 4.0About this reportP1.1/P1.2/P1.3/A5A Message from Senior ManagementP2.1/P2.2
About WuliangyeP4.1/P4.3/P4.4/A3
Five excellent charactersare the foundation of ourdevelopment
Party BuildingM1.2Corporate GovernanceP4.2/M1.1/M1.1Risk Management and Com-
pliance
M1.3/S1.1/S1.2Corporate CultureP4.1/G1.1Corporate Social Responsi-bility Management
G2.1/G2.2/G2.3/G6.1/G6.2
Wuliangye's network - col-laboration with all parties
Value ChainM3.1/M3.2/M3.4Customer FirstM2.1/M2.14/M2.15/M2.16/M2.18Investor RelationsM1.4/M1.45Employee Recruitment andDevelopment
S1.6/S1.6/S2.1/S2.2/S2.8/S2.10/S2.14/S2.15/S2.17/S2.18Industrial ProgressM3.6
Wuliangye's quality - highstandards across all areas
Production TechniquesM2.2
Quality ManagementM2.2/M2.3Scientic and Technological
Innovation
M2.4/M2.6New ProductsM2.1DigitalizationM2.1
Content of the ReportCASS-CSR 4.0
Wuliangye Culture - A Care
Giver and Story Teller
Fight against COVID-19G3.1Targeted Poverty AlleviationS4.5/S4.12/S4.14
CharitiesS4.7/S4.6Responsible DrinkingM2.12
Promote Baijiu CultureG2.4
Five qualities reect the
essence of nature
Environmental ManagementE1.1/E1.2Sustainable ProductionE1.3/E2.3/E2.4/E2.6/E2.8/E2.17/E2.23/E2.25
Eco ParkE1.9/E2.11/E2.12/E2.14/E2.16/E3.3/E3.4Top-quality warehouses S4.5
Health and Safety S2.11/S2.12/S3.1/S3.2/S3.3/S3.4/S3.6/S3.7
Future outlookA1PerformanceS1.3/S2.3/S2.5/S4.8/S4.11/E1.8/A2
FeedbackA6
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Wuliangye Yibin Co., Ltd.
SOCIAL RESPONSIBILITY REPORT2020Feedback
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Thank you for reading Wuliangye's 2020 Annual Social Responsibility Report. To provide you and otherstakeholders with more professional and valuable CSR information, we hope you can complete relevantquestions in the feedback form. With your help, we can further improve our social responsibility and sustain-able development management in the future.Please rate the following questions on a scale of 1 to 5 (1 being the lowest and 5 being the highest)
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