SOCIAL RESPONSIBILITY REPORT
Strong Flavor of China·Harmonious Wuliangye· Top Chinese Baijiu
WULIANGYE YIBIN CO., LTD.
About This Report
The 2021 Social Responsibility Report of Wuliangye Yibin Co., Ltd. (hereinafter referred to as this "Report") is the 14th annual cor-porate social responsibility ("CSR") report released by Wuliangye Yibin Co., Ltd. (hereinafter referred to as "Wuliangye") since 2008.Based on our principles of being objective, standard, transparent, and comprehensive, this Report discloses in detail Wuliangye'spractices and performance in areas of its responsibilities to environmental, social, and governance ("ESG") causes in 2021.
Reporting Period
This Report covers the period lasting from 1 January 2021 to 31 December 2021. To make its content more comparable and com-plete, this Report has included data from previous years.
Scope of This ReportThis Report covers Wuliangye Yibin Co., Ltd. (stock code: 000858) and its subsidiaries.Release PeriodThis Report is an annual report. The 2020 report was released in April 2021.Data Resource and Credibility
Data contained in this Report is collected from government public data, Wuliangye's internal statistical statements, third-party sur-veys, administrative policies and reports, and third-party evaluations and interviews. This Report has been reviewed and approvedby 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 Reporting
Shenzhen Stock Exchange ("SZSE") - Guidelines for the Standard Operation of Listed CompaniesShenzhen Stock Exchange ("SZSE") - Guidelines for the ESG Environmental, Social Responsibility and Corporate Governance Infor-mation Disclosure of Listed Companies (Exposure Draft)DesignationFor the convenience of our readers, "Wuliangye", "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 and downloadedat:
http://www.cninfo.com.cnContact InformationAddress: 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, ChinaPostal code: 644007Telephone: (0831) 3567000, 3566937, and 3566858Fax: (0831) 3555958E-mail: 000858-wly@sohu.comWebsite: https://www.wuliangye.com.cn
A Message from theSenior ManagementAbout Wuliangye
Company ProleHighlights of 2021Honors and Awards
CONTENTS
Party BuildingCelebration of the 100th Anni-versary of the Founding of theCommunist Party of China
PerformanceFuture OutlookBenchmarks forIndicatorsSuggestionsand Feedback
Craftsmanship-embeddedInnovationTechnique InheritanceQuality ControlCulture Promotion
Supplier ManagementDistributor SupportConsumer ServicesEmployee Recruitment andDevelopmentInvestor Relation ManagementCommon Industrial ProgressRural RevitalizationPublic Welfare and Charity
TechniquesPremium Products through An-cient and Modern Efforts
Society
Extensive Brotherhood throughAncient and Modern CultivationInheritance
Time-honored Brand thatBears "Red" Heritages
Environmental ManagementZero-carbon Liquor EnterpriseEcological ConservationGreen Logistics
EnvironmentPreservation of Rivers in TheirNatural State through Ancientand Modern Cultivation
Specialsubject
Corporate GovernanceRisk Control and ComplianceCombating Corruption andUpholding IntegrityDigital Transformation andUpgradeCorporate Social ResponsibilityManagement
GovernanceCellar Prosperity throughout An-cient and Modern Governance
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
A Message from the Senior Management
A MESSAGE FROM THE SENIOR MANAGEMENTWULIANGYE YIBIN CO., LTD.
The year 2021 marked the centennial anniversary of the Communist Party of China. It was also the rst year of the "14th Five-Year Plan". Based on this historic pointof advancing from the rst centenary goal to the second, we seized the moment and strategic opportunities for a new chapter of high-quality development. Bearingin mind the country's top priorities, we observed the prevailing trend, thought and planned in terms of the big picture. We focused on major issues, as well as soughtstable progress by maintaining strategic focus. We saw meeting the new needs resulting from enhanced consumption as our objective and the supply-side structuralreform as our guiding principle so that we could comprehensively promote the sustainable, steady and high-quality development of Wuliangye.
In 2021, we consistently adhered to innovation empowerment to meet the diverse needs of our customers.We proactively implemented thenational innovation-driven development strategy and upheld our core values of staying honest and quality-oriented while advocating craftsmanship and inheritance-in-spired creation so as to capitalize on the advantages of our environment, craftsmanship and aged fermentation pits. Apart from the original technological innovationplatforms, such as China Light Industry Laboratory, the solid fermentation laboratory and the National Enterprise Technical Center, efforts were also accelerated topromote the creation of the innovation center for the Baijiu industry of Sichuan Province. Thus, along with the innovation of production techniques and improvement ofproduct quality, we consistently promoted the supply-side structural reform, optimized our product system and committed ourselves to upgrading the internationaliza-tion of our Baijiu products in the new dual-circulation development pattern, thereby creating a full product system that would meet the needs of consumers around theworld. Moreover, through these efforts the international competitiveness and inuence of Chinese Baijiu would be enhanced, and it would be recognized throughoutthe world.In 2021, we upheld value sharing as the means to promote the steady development of the Company.We have steadily maintained the core val-ue ideas of "creating happiness for employees, creating outstanding experiences for customers, and creating returns for investors" and vigorously practiced the spiritof a state-owned enterprise by readily taking responsibility to realize value sharing with all stakeholders. Additionally, guided by the strategy of talent-based develop-ment, we created a well-developed welfare mechanism and empowerment platform and built up a community of shared future for the Company and its employees. Acontinuous effort was made to promote the stability of the supply chain and the channel transformation, establish a new relationship of coexistence and co-prosperitywith suppliers, and elevate the customer’s experience with high-quality services. We also protected the rights and interests of our investors, unblocked communicationchannels for investors, and created a steady increase in value on their behalf.
It was in 2021 that we implemented the green development philosophy to grow into an environmental benchmark enterprise.We werecommitted to promoting the harmony between man and nature. To achieve this goal, we resolutely followed the national strategy of carbon-emission peaking andcarbon neutrality. In doing so, we proactively implemented the arrangements for the nationwide battle to prevent and control pollution, and prioritized the work of en-vironmental protection. For example, we took the lead in putting forward the vision of building a "Zero-carbon Liquor Enterprise" as well as actively formulated relatedstrategies and implemented them. Additionally, we created Minjiang Ecological Reserve and environmental-protection ecological wetlands, thereby contributing to therealization of carbon-emission peaking and carbon neutrality. Besides, in the process of realizing the brand value, we held rm to the eco-cycle development philoso-phy and strove to carry out the principle "from the land, to the land”. By reducing the consumption of production resources, recycling products and services, recyclingproduction materials, and controlling the production process, we formed an efcient production pattern featuring low consumption and comprehensively created aresource-saving, environmental development mode, thus facilitating the realization of sustainable development.In 2021, we carried forward the principle of harmony so as to help people have happier, more fullling lives.Guided by "mean and harmony",the essence of Confucianism, we stuck to cultural condence, polished our national symbols and promoted the Chinese culture so as to prosper in the new era. Weconsistently endeavored to apply the principle of harmony as a symbol of Chinese Baijiu that meets people's needs for a better life, thus building a national brand anda Chinese business card that would be known throughout the world. We established a three-in-one organization structure in order to guide the assistance work andthus improve people's livelihood and made a ve-year plan to help the assisted regions achieve revitalization. Additionally, we devoted ourselves to the public-welfareundertaking by resting on charitable foundations to contribute to regional development and common prosperity.The window of opportunity is short-lived. So, we must seize it without hesitation. The world is undergoing profound changes unseen in a century, with both opportuni-ties and challenges. In pursuit of long-lasting business, we’ll actively take up development opportunities, shore up our weak spots, develop our strengths, and createnew growth drivers in accordance with the principle of bolstering weak spots and consolidating advantages while bolstering the digital transformation. Moreover, we’llimplement the new development philosophy and integrate with the new national development pattern to play a steady role as a state-owned enterprise in contributingto a strong national economy over the long term.
Mr. Zeng CongqinSecretary of Party Committee and Chairman of Wuliangye GroupSecretary of Party Committee and Chairman of Wuliangye Yibin Co., Ltd.
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
About Wuliangye
Company Prole
Eight old liquor production workshops jointly established the Yibin Daqu Liquor Production Industrial Joint Venture. Then, theventure changed its name to Yibin No. 24 Liquor Distillery of Southern Sichuan State-Owned Monopoly Company.
In the joint-stock reform, Sichuan Yibin Wuliangye Distillery restructured part of its assets into Wuliangye Yibin Co., Ltd., whichwent public on Shenzhen Stock Exchange under the ticker symbol 000858.
Its name was changed to Sichuan Local State-Owned Yibin Wuliangye Local Distillery.Its name was changed to Sichuan Yibin Wuliangye Distillery.
Wuliangye's market capitalization exceeded RMB1 trillion.
1952
1998
19591964
2020
Company Development
Brand Value of the Company
Corporate Vision
Development Goals
Throughout the year 2021, the Baidu Index of Wuliangye has been above the average level of the leading peers. In addition, Wuliangye is constant-ly consolidated in terms of the brand's core advantages. It ranks rst among peers on authoritative lists, such as the World's 500 Most InuentialBrands, China's 500 Most Valuable Brands, and Brand Finance Global 500.
Wuliangye sticks to the general principle of seeking progress while maintaining stability and the new development philosophy. Additionally, itconsistently deepens its long-term policy of "shoring up weak spots, developing strengths, and creating new growth drivers" to improve quality,strengthen management and control, strengthen digital transformation, as well as realize new development. Meanwhile, Wuliangye strives to attainthe "2118" development goals, including the capacity to produce 200,000 tons of unblended liquor, the capacity to warehouse one million tons ofbase liquor, a sales revenue of more than RMB100 billion, and a total pre-tax prot of RMB80 billion.
In pursuit of long-lasting business, Wuliangye is committed to developing into a green, innovative, world-leading enterprise that keeps growing in ahigh-quality and sustainable way.
Highlights of 2021
· Held the Year-end Summary Conference 2020.February
· Concluded a contract with the Secretariat of the Boao Forum for Asia to become the Honorary Strategic Partner of the
Boao Forum for Asia Annual Conference 2021.March
· Held a celebration for the 100th anniversary of the founding of the Communist Party of China.
· Held the signing ceremony for its strategic cooperation with the Hong Kong-based Sunwah Group.July
· Attended the APEC Women Leadership Forum 2021 as a partner and the designated supplier for the wine for the theme
dinner.September
· Being the exclusive strategic partner and the exclusive title sponsor of the launching ceremony of the large-scale documen-
tary, The Forbidden City.October
· Attended the opening ceremony of the Boao Forum for Asia Annual Conference 2021.
· Undertook the 10th Chinese Baijiu T9 Summit.
· Co-held the Social Responsibility Forum for State-owned Enterprises.April
· Ranked second on the Brand Finance Spirits 50 2021.
· Held the 2020 General Meeting of Shareholders.
· Held the signing ceremony for its strategic cooperation with Postal Savings Bank of China.
June
· Donated RMB200 million to the building of ten kindergartens in the central urban area of Yibin.
· Being the rst enterprise in the Baijiu industry to attend an important international academic conference as the rst au-
thor's unit.May
· Being awarded the 19th China Quality Award.
· Attended the 2021 Boao Forum for Entrepreneurs.
· Signed a strategic cooperation agreement with Bazhong.
· Undertook the special session dedicated to Wuliangye under the Old Baijiu in Household collection event.
· Signed a technical cooperation agreement with Beijing Technology and Business University on the Biological Activity Re-
search and Application of Polysaccharide in Huangshui of Wuliangye.
· Held the 25th Wuliangye 12·18 Super Fan Festival.
· Held the 25th Wuliangye Liquor Sage Ceremony.
· Held the 25th Wuliangye 12·18 Annual Convention: Achieving Shared Growth through Discussion and Collaboration at themajor venue and 27 online sub-venues.
December
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
Honor or AwardOrganizerThe 251st on the World's 500 Most Inuential Brands 2021
World Brand LabThe 17th on China's 500 Most Valuable Brands, with the brand value assessed at RMB325,316,000,000
The 35th on Asia's 500 Most Inuential Brands 2021The 61st on the Brand Finance Global 500 2021Brand FinanceThe 3rd on China's 100 Most Valuable BrandsR&F Global Ranking
Top 200 Enterprises in China Light IndustryChina National Light Industry CouncilLike 2021 My Favorite Chinese Brand China National Brand2021 China Brand Innovation CasePeople's Daily
Honors and AwardsBrand
Honor or AwardOrganizerThe 19th China Quality AwardThe China Association for Quality (CAQ)2020 Sichuan Tianfu Quality AwardThe People's Government of Sichuan ProvinceThe First Prize of the 2020 Science and Technology Award by the China National Food Industry
Association
China National Food Industry AssociationBest Practice Case for the 2020 Annual Report Results Presentation by Listed CompaniesChina Association for Public CompaniesSpecial Award for Scientic and Technological Progress in China's Wine Industry during the"13th Five-Year Plan" Period and Award for Outstanding Scientic and Technological Contribu-
tions to China's Wine Industry
Scientic and Technological Award Committee under China Alco-
holic Drinks Association2021 China Corporate Credit Top 500
China Enterprise Reform and Development SocietyChina Cooperative Trade Enterprises AssociationGold Medal in the World Cocktail ChampionshipsInternational Bartenders Association2021 · China Agriculture Award for Ten Outstanding Contributions to Rural Revitalization
Organizing Committee of China Agricultural Brand Annual Award
Ceremony2021 Best Operator and PerformerOrganizing Committee of China High-end Wine and Spirits ExpoBest New Media Operator of the 2020 Investor Relations Golden Awardswww.p5w.net
2020 Golden Bull of Investment ValueChina Securities Journal
Honor or AwardOrganizerThe Third Sichuan Charity Award - The Most Charitable ContributorThe People's Government of Sichuan Province2021 China Corporate Social Responsibility CasePeople's Daily
2021 Green InnovationChina CSR Annual Forum2021 Outstanding Corporate Social Responsibility ReportChina CSR Annual ForumThe 15th China Listed Company Value Evaluation - China Listed Company Corporate Social Responsi-
bility Award
Securities Times
Operation
Social Responsibilities
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
v
InheritanceTime-honored Brand that Bears"Red" Heritages
The year 2021 marked the start of the "14th Five-Year Plan" period that is a critical period forWuliangye to ride on the momentum to start a new journey and important window period forWuliangye to seize strategic opportunities to arrange the new round of high-quality develop-ment. Wuliangye closely united around the CPC Central Committee with Comrade Xi Jinpingas the core and earnestly implemented the decisions and arrangements of the CPC CentralCommittee, the State Council, the CPC Sichuan Provincial Committee, the People's Gov-ernment of Sichuan Province, the CPC Yibin Municipal Committee, and the People's Gov-ernment of Yibin City. Meanwhile, it consolidated its top position in strong avor spirits andexpedited to become a modern world-leading liquor enterprise featuring excellent products,outstanding brands, leading innovation, and modern governance so as to welcome the con-vening of the 20th CPC National Congress and the 12th Congress of Party Representativesof Sichuan Province with more excellent achievements.
· Party Building· Celebration of the 100th Anniversary of the Found-ing of the Communist Party of China
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
Party Building
One Foundation
The Company always upheld the leadership of the Party, reinforced Party building, and consolidated the "root" and "soul" as a state-owned enterprise. In terms ofspecic practices, Wuliangye created the "12345" Key Work System, promoted the deep integration between Party building and production and operations, and ledhigh-quality corporate development based on high-quality Party building. Moreover, it exerted all its effort to have a solid start of the "14th Five-Year Plan" period andestablish a basic guarantee for becoming a Fortune Global 500 company and modern world-leading enterprise featuring excellent products, outstanding brands, lead-ing innovation, and modern governance.
Enhancing the strengths ofcommunity-level organizations.
Arranging and assessing Partybuilding and production andoperations synchronously.
Upholding the leadership of the Party andreinforcing Party building.
Making innovation in WeChat-based PartyLectures, Party Member-led Key Projects, theduty performance and fact recording platform,and the Wuliangye Family App.
Driving production, industrial development,and team building through Party building.
· One priority· One focus· One methodThree perspectives to sharpen the top
Four skills for enhancing the body
Five fundamentals to cementing the foundation
· We made Party building more effective via educationaland promotional activities· We created highlights by strengthening demonstrationsand educational sites· We promoted integrated development with new methods· We made work easier with the Internet+· Full coverage of basic education· Fundamental lecture sessions were provided to all staff· Fundamental Party organizations valued CPC memberadmission· Fundamental rules were rigorously implemented· Fundamental supportive measures were put into practice
"One Foundation" means upholding the leadership of the Party and reinforcing Party building. During the Reporting Period, the Company achieved the "Three FullCoverages"—the full coverage of the development of Party organizations, the full coverage of the "Integration of Party Building into the Articles of Association", andthe full coverage of prerequisites that the Party Committee discussed and regarded as major decisions. In the meantime, it fully promoted the standardized and nor-malized building of Party organizations, issued the Guidelines for the Standardized and Normalized Building of Community-level Party Organizations, pushed forwardorganizational development, organizational life, team management, information and materials, and the standardized and normalized development of activity platforms,and strengthened Party branches' role as a fortress in battles.
The "12345" Key Work System
"12345"Key Work System
"One Foundation"
"Five BrewingWorking Measures"
"Two Synchroni-zations"
"Three Drives""Four Innovations"
Pyramid Project to Enhance Standard Party Building of Community-Level Party Branches and Consolidatethe "One Foundation"
· The Company integrated Party organizations into the governance structure, specied and enhanced Party organizations' legal status in
the corporate governance structure, and embedded Party building into its Articles of Association. Concurrently, it specied important mat-ters, such as Party organizations' responsibilities and authorities, institutional settings, operating mechanisms, and basic guarantee, andconstantly promoted the "Self-inspection of the Integration of Party Building into the Articles of Association". During theReporting Period, Wuliangye's tier-1 subsidiaries completed the revision to their articles of association.· The Company further implemented and improved the the dual responsibilities requirement (to be responsible for both Party and businesswork), ensured the inclusion of members of CPC Wuliangye Committee in management or the board, and vice versa, strictly implementeda prerequisite for management and the board in making major decisions to have issues discussed and studied rst by the Party committee.Throughout the year, the Party Committee of the Company reviewed 173 major matters.· The Company held more than 1,500 sessions of educational and learning activities, beneting over 40,000 Party members,
and offered more than 140 sessions of on-site lectures on the Party history and nature.· The Company's works on the theme Zhao Yiman were granted the rst prize of a themed speech competition of the State-owned Assets Supervision and Administration Commission of Sichuan Province and Second Prize of the Finals ofthe First Community-level Theory Publicity Competition of Sichuan Province, and the competitor was named to the "Top 10Golden Promoters"of Sichuan Province.
1112
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONStrictly Controlling CPC Member Admission
Having a Strict Political Life
Case
Case
The Company gave top priority to political standards and strictly selected Party member candidates. the frontline employees who engaged in production andoperations and marketing, young employees, and those with a high educational background were the main sources of such candidates. During the ReportingPeriod, the Party committees of the Company and its subsidiaries approved 217 new Party members. In the meantime, in order to further enhance the politicalquality of active applicants for Party membership, the Company held training sessions for active applicants for Party membership (and potential Party mem-bers). A total of 377 active applicants for Party membership and potential Party members from community-level Party organizations participated in the trainingand took exams.
The Company's Party Committee organized special organizational life meetings during the Reporting Period. All community-level Party organizations conscien-tiously organized pre-meeting learning, heard employees' voices, deeply investigated issues, and performed strict criticism and self-criticism. Party memberswere guided to exchange their ideas, summarize experience and lessons, and conduct criticism and self-criticism. Leadership team members, as ordinary Par-ty members, attended special organizational life meetings of their respective Party branches, earnestly carried out criticism and self-criticism, and achieved two"One Hundred Percent".
Two Synchronizations"Two Synchronizations" means the synchronous arrangement and assessment of Party building and production and operations. Every year, the Company synchro-nously issued the goals of Party building and production and operations through the No. 1 Document. The dual responsibilities requirement in Party building was im-plemented. The Letter of Commitment of Production and Operation Goals and the Letter of Commitment of Party Building Goals are signed at the same time to keepraising the weight and proportion of Party building in assessment. Additionally, it continued to improve and implement the "Plan-Do-Check-Act Cycle" and turned theintegration between Party building and production and operations more reasonable, systematic, feasible, and practical.Continuing to Improve and Implement the "Plan-Do-Check-Act Cycle" to Enhance Production and Operations
P: PlanD: DoA: ActC: CheckSpecial organizational life meeting on the learning and education of the Party history of the First Party Branch
Special organizational life meeting on the learning and education of the Partyhistory of the Party Branch of Sacred Mountain Molin Group Co., Ltd. Si
Chuan (Sacred Mountain Molin Group)
Special organizational life meeting on the learning and education of the Party
history of the 11th Party Branch
Combining result consolidation and issue summarization and incorpo-rating issues identied into the next "PDCA cycle" of Party building.Holding a seminar on Party building: Experience and good practiceswere summarized; and the results were promoted.
Employing a self-check + check by Party organizations model to make the deep integration be-tween Party building and business operation compulsory, rather than suggested· Raising the proportion of Party building in assessment: The proportion was increased by 5%.· Self-check: All community-level Party organizations conducted self-check in line with the Rulesfor the Assessment of Party Building Goals at the end of the year.· Check by Party organizations: The Party Building Assessment Group inspected and assessedthe duty performance in Party building by the secretaries of community-level Party organizations.The "1+5" evaluation system (1: Overall evaluation, 5: Political quality, business performance,solidarity and cooperation, style and image, and Party building) was developed. Party buildingwas incorporated into the democratic evaluation of leadership team members at all levels.Meanwhile, comprehensive inspection and assessment were carried out over the completionstatus of the goals and tasks of Party building of community-level Party organizations.
Focusing on core tasks and annual targets, developing annual Partybuilding "must-dos," and rening and quantifying the goals and tasksof Party building· A special meeting of the Party Committee is held at the beginning ofeach year: Key work is studied and promoted.· A meeting promoting Party building was regularly held: Party buildingand production and operations were planned, deployed, implement-ed, and assessed synchronously.· The Letter of Commitment on Party Building was signed: The
Letter of Commitment on Party Building is signed with secretariesof community-level Party organizations every year to urge them toeffectively perform their responsibilities as the "First ResponsiblePersons" of Party building.
Implementing the policy of Party building contact points, implementing the dual responsibilitiesrequirement in Party building, and reinforcing the supervision and guidance of competent organi-zations, relevant elds, and the contact points of community-level Party building· Giving full play to the Party's leading role: The ve projects of Party building were implemented.
The Five Brewing Working Measures were adopted. The CPC Wuliangye Committee PartySchool, the Wuliangye Youth League School, and the Wuliangye Lectures offered training andlectures. Party building activities were carried out at the "1+N" sites for the Party building cultureon multiple themes.· Conducting Party building activities: The Company deeply promoted the learning and education
of the Party history to be normalized and long-term, deepened the daily education of Party mem-bers, and advocated innovative theories of the Party in workshops and teams.· Normalizing the activity of "Party Member-led Key Projects": Nearly 400 scientic and technolog-ical achievements were made and applied cumulatively, resulting in economic benets exceed-ing RMB400 million, since the launch of this activity.
1314
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONThree Drives
Four Innovations
"Three Drives" means the drive of production, industrial development, and team building through Party building. During the Reporting Period, the Company highlightedthe "Improvement in the Well-being of Employees", stuck to the synchronous growth of employee income and corporate development, and establish a "normalized+ emergency" assistance mechanism. Besides, it continued to implement the Management Measures for Leaving the Post for Recuperation due to Critical Illnesses,improved the production and living environments of employees, and practically enhance the well-being of employees.
· The Company, included in the rst group
of pilot organizations of the team buildingreform of industrial workers of the prov-ince, focused on ideological guidance,achievements, and family construction,and endeavored to develop a team ofhigh-quality and modern industrial work-ers.· Wuliangye's "Production Reform Model"was fully recognized by the All-China Fed-eration of Trade Unions and the SichuanFederation of Trade Unions.
· Platforms, such as "Wuliangye's EmployeeFamily" and the "Wuliangye Family" App,were created.· Brands, such as the "Craftsmen IncubatorProgram", the "Employees' Life Festival",and the "Employee Sports Season", werecreated.· Teams, such as "Wuliangye Family Ex-perience Ofcers" and "Labor Union NewMedia Promoters", were built.· Employees' senses of gain, happiness,
and safety were raised.
· The "Wuliangye Youth League School"
was established.· The "Young Employee Cultivation Pro-gram" was implemented.· The Skill Improvement Quarter of YoungEmployees was launched.· The vitality and motivation of the youthwere stimulated.
"Four Innovations" means the innovation in "WeChat-based Party Lectures", Party Member-led Key Projects, the duty performance and fact recording platform, andthe Wuliangye Family App. The Company addressed difculties in development through innovation and constantly strengthened community-level Party organizations.
During the Reporting Period, the Company's"Wuliangye Family" App was named to"Top 10 Corporate Platforms"
by the All-China Federation of Trade Unions.
"Four Innovations" Work Mechanism
Work System of "Party Member-led Key Projects Addressing Di?culties in Development"
"Three Drives" Work Mechanism
Drivingindustrial devel-opment
The duty performance and fact recording platform within the Partywas utilized to preliminarily form a grand supervision layout consist-ing of "critical minority + routine supervision + frontline supervision".The "Wuliangye Family" App was upgraded to be an online bridgefeaturing ideological guidance, poverty alleviation, legal assistance,psychological counseling, convenience to the people, harmony, andinterconnectivity.
The activity of Party Member-led Key Projects was deepened.The pioneering and exemplary role of Party members was givenfull play to. The team of Party members was stimulated to resolvedifculties in production and operations and create economic andsocial benets.
Party lectures were optimized. New "WeChat-based Party Lec-tures" were proposed. Knowledge of the Party and the stories ofpeople around were told from small entry points and small topics.
"Four Innova-tions"
Drivingproduction
Drivingteam building
Party building
The Regulations of the Communist Party of China for the Community-level Party Orga-nizations of State-owned Enterprises (Provisional) were observed.
The requirements of the CPC Central Committee and the CPC Sichuan Provincial Com-mittee for strengthening the Party building of state-owned enterprises were implemented.The integration between Party building and production and operations was deepened.Actively Responding to the Party's Call
The Party Committee closely followed the working ideaof "Party Building and Shared Development".
The Party branches' role as a fortress in battles and theParty members' pioneering and exemplary roles weregiven full play to.
The activity of Party Member-led Key Projects was con-ducted.
Planning Work Implementation Paths
The Guidelines on Standardization of Community-levelParty Organization Construction in Wuliangye Group andYibin Wuliangye were issued.
The Steering Group of the Activity of Party Member-ledKey Projects was established.
All community-level Party organizations took charge ofthe routine management of Party Member-led Key Proj-ects.Ensuring implementation
Projects were set up regarding the topics closely related to the Company's reform and development, such as Party building, production technologies, marketing, nancial management,quality management, safety management, energy and eco-protection management. The exemplary and leading role of Party members was given full play to.Party Members Taking the Lead in Overcoming Di?culties
Converting Results to Improve Quality and E?ciency
Results were applied to production and operations and converted into economic andsocial benets to drive the Company's reform and development.
A model for Party Member-led Key Projects was developed, which is normalized andlong-acting and centers on rst-class business, new business records, and optimalresults.
1516
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONParty Members Playing an Exemplary Role in Party Member-led Key Projects
CaseThe Company gave full play to the pioneering and exemplary role of Party members and deeply conducted the activity of Party Member-led Key Projects toaddress difculties in development. During the Reporting Period, 100 results were achieved by overcoming difculties, resulting in economic benets of nearlyRMB300 million. Particularly, great achievements were made in the "Project of Desulfuration and Flue Gas Cleaning with Alkali Recovery Boilers", the "Projectof Multiple Measures for Reducing Energy Costs", and the "Project of Improvement in the Transport Efciency of the Heat Supply Network of the JiangbeiIndustrial Park", in terms of energy conservation, emission reduction, and environmental protection. Besides economic benets, the Company made favorablesocial benets.
Improve the overall skill level of employ-ees by adopting the "transmitting, aidingand leading" mode and encouragingemployees to "compete with each other".
Advocate solidarity and cooperation,promote integration and efficiency,and form work synergy.
Give full play to the pioneering and exempla-ry role of Party members by promoting thebest practices of model Party members.
Reect results in innovation and efcien-cy, based on management, by overcom-ing difculties.
Reflect results in production quality in a business-oriented anddata-based manner.
Party Member-led Key Project: Recycling of Bottle Washing WaterParty Member-led Key Project: Achievements in the Project of
Desulfuration and Flue Gas CleaningFive Brewing Working Measures
The "Five Brewing Working Measures" aim to enhance the strengths of community-level organizations. In combination of the actual Baiju production, the Companyapplied the "Five Brewing Working Measures" to community-level Party organizations and enhanced the quality and efciency of the building of community-level Partyorganizations.
Five Brewing Working Measures
Celebration of the 100th Anniversary of theFounding of the Communist Party of China
Held the Activity on the Theme "Revisit Revolutionary Sites and Re-call Revolutionary Memory"
The year 2021 marked the 100th anniversary of the founding of the Communist Party of China. The Party will lead the Chinese people to start a new journey to builda modern socialist country in all respects. In order to grandly celebrate the 100th anniversary, promote and eulogize the Party's remarkable achievements, and carryforward the hardworking and enterprising spirit, the Party Committee of the Company pushed forward activities on ve themes, "Centennial Journey, Centennial Im-pression, Original Aspirations, Hardest Row, and Wisdom of the Masses", properly conducted major events of Party building, promoted the deep integration betweenParty building and production and operations, and stimulate Wuliangye to become a Fortune Global 500 company.
During the Reporting Period, the Company organized Party members and cadres to visit revolutionary resources in Yibin, such as the Zhao Yiman Memorial Hall andthe Li Shuoxun Memorial Hall, to learn the moving stories of revolutionary martyrs. Frontline Party members from 21 marketing war zones and 58 marketing basesnationwide leveraged local revolutionary resources and held more than 140 on-site lectures on the Party history and nature at red education bases, such as the sitesof the previous sessions of the Congress of Party Representatives and the Jinggang Mountains, and revolutionary site, such as the Hubei-Henan-Anhui RevolutionaryMemorial Museum, so as to perceive the power of patriotism and carry forward the tradition of revolution.
Reviewing the Chinese Communist Party Admission Oath
Visiting Zhu De's Former Residence
Visiting the site of the First CPC National Congress
Visiting the Zhao Yiman Memorial Hall
Five BrewingWorking Mea-sures
Achieveresults
Enhancee?ciencyCreatesynergy
Improvetechniques
Developstyle
1718
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONHolding a Grant Exhibition Celebrating the 100th Anniversary of theFounding of the Communist Party of China
Holding the July First Awarding Event
Holding an Employees' Variety Performance Celebrating the 100thAnniversary of the Founding of the Communist Party of China
The Company held a grant exhibition celebrating the 100th anniversary of the founding of the Communist Party of China in line with high standards and developed anofine program on the theme "Learn the Party history and Wuliangye's History" open to the public. Since its opening on "1 July", it attracted more than 10,000 visitorscame from superior organizations, brother enterprises, and surrounding communities.
The Company held the "Two Excellent and One Advanced" commendation conference during the Reporting Period to commend excellent Party members, excellentParty workers, advanced community-level Party organizations, and advanced organizations and individuals in poverty alleviation and stimulated Party organizationsat all levels and Party members to strive to make achievements in "starting a new undertaking". Twenty advanced community-level Party organizations, 50 excellentParty workers, and 100 excellent Party members were commended at the July First Awarding event by the Party Committee of the Company.
The Company held an employees' variety performance celebrating the 100th anniversary of the founding of the Communist Party of China, on the theme "CentennialEndeavor, New Journey", to review the Party's splendid development in the past century and wish the great Party to lead the Chinese people to march toward a newjourney and a new era.
An employees' variety performance celebrating the 100th anniversary of the founding of the Communist Party of China
An exhibition celebrating the 100th anniversary of the founding of the Communist Party of China
Commended representativesSpeech by the representative of advanced commu-
nity-level Party organizations
Speech by the representative of excellent Party
workers
July First Awarding Event
1920
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
vv
GovernanceCellar Prosperity throughout An-cient and Modern Governance
The year 2021 is of special signicance as it marks the beginning of the 14th Five-Year Plan. Facing this historical moment advancing from the rst centenary goal to thesecond, the Company adhered at all time to the guidance of strategy, mechanism andawareness, implemented its actions rmly, and kept its corporate mission of "promot-ing our historic legacy, co-creating a life of enjoyment" in mind to stabilize governance,strengthen inner control, inherit the practice of the old, breed new practice and consol-idate the Company's foundation in its sustainable and high-quality development.
·Corporate Governance·Risk control Compliance·Anti-corruption and Upholding Integrity·Digital Transformation and Upgrade·Social Responsibility Management
2122
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Corporate GovernanceIn order to regulate corporate operation and continuously improve the Company's governance capability in standardization, Wuliangye strictly followed the guidance inthe Company Law, the Securities Law and the Governance Guidelines for Listed Companies, formulated the Articles of Association and the Compilation for CorporateStandardized Operation System and continuously revised and improved them so as to optimize the governance structure and system for corporate legal person andcontinuously improve the Company's governance capability.Structure Chart of the Company
General Meeting of ShareholdersThe Supervisory Committee
The Board of DirectorsManagers
Sichuan Yibin Wuliangye Distillery Co., Ltd.Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd.Wuliang NongXiang Series Baijiu Yibin Co., Ltd.Yibin Wuliangye Liquor Sales Co., Ltd.Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd.Wuliangye Dashijie (Beijing) Trade Co., Ltd.Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd.Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd.Sichuan Yibin Plastic Packaging Materials Company Limited
Ofce of the Board of DirectorsAdministration OfceParty-Mass Working DepartmentStrategy & Development DepartmentFinancial Management DepartmentThe Audit DepartmentOfce of the Supervisory CommitteeWuliangye Brand Project DepartmentHuman Resources DepartmentAsset Management DepartmentSafety Production Supervision DepartmentSecurity DepartmentFamily Planning and Logistics Service DepartmentInvestment and Technical Renovation DepartmentEnergy and Environmental Protection Management DepartmentInternational Cooperation DepartmentSupplies Procurement Center
Shenzhou Class Co., Ltd. Global Group Yibin SichuanSichuan Yibin Wuliangye Jingmei Printing Co., Ltd.Yibin Wuliangye Creart Co., Ltd.Yibin Changjiangyuan Liquor Co., Ltd.Yibin Jiangjiu Liquor Co., Ltd.Handan Yongbufenli Liquor Co., Ltd.Wuguchun Jiu Ye Co., Henan. ChinaSichuan Wuliangye New Retail Management Co., Ltd.Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd.Sichuan Yibin Pushi Group 3D Co., Ltd.
Quality Testing CenterTechnology Research CenterPersonnel Education & Training CenterInformation Management CenterWuliangye Personnel Management CenterProduction Management DepartmentQuality Control DepartmentMarket Management DepartmentExclusive Store Management DepartmentCorporate Culture Research and Promotion CenterDesign CenterLiquor Body Design Center
Sichuan Wuliangye Culture Tourism Development Co., Ltd.
Discipline Inspection & Supervision Department
Office of CPC Commit-tee & Government Ofce
Deepening ReformOfceTendering Manage-ment Ofce
21 marketing regions/ 60 marketing centers
(Number of) Liquor Production Workshop
Auxiliary Workshop (Number: )
2324
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Operation of General Meetings of Shareholders, Board of Directors,and Supervisory Committee to Safeguard Stable DevelopmentIn 2021, the Company continuously improved and built governance structure and system, secured the power of the General Meetings of Shareholders, the Board ofDirectors and the Supervisory Committee in decision-making and supervising in accordance with the Articles of Association, the Procedure Rules of the General Meet-ing, the Procedure Rules of the Board of Directors and the Procedure Rules of the Supervisory Committee, and further claried the scope of their respective rights andresponsibilities to improve the three boards' capability in independent operation and mutual supervision.
More than 300 of the Company's directors, supervisors, ofcers, investors and securities researchers, analysts and others attended the meeting.12 proposals were deliberated and 12 proposals were passed.
In 2021, 17 meetings of the Board of Directors wereheld.
36 proposals were deliberated,
and 36 proposals were passed.Wherein, 2 on-site meetings were held,and 18 proposals were deliberated;15 proposals were deliberated in way of circulatingfor perusal,and 18 proposals were deliberated.
In 2021, 5 meetings of the Supervisory Committee wereheld,and 21 proposals were deliberated.Wherein, 2 on-site meetings were held,and 18 proposals were deliberated;3 proposals were deliberated in way of circulation andcommunication,and 3 proposals were deliberated.
In 2021, 16 ofcer meetings were held, involving 47
items.Wherein, 24 issues were deliberated and conveyed the spirit of important meetings for 6 times.
During the Reporting Period, there were 8 directors in the Company, including 4
independent non-executive directors and 4 inde-pendent directors.
2 female directors were also included.
The 2020 General Meeting of Shareholders
The Board of Directors
The Supervisory Committee
O?cer Meetings
2526
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Risk Control and Compliance
Combating Corruption and Upholding Integrity
To safeguard stable development, the Company continuously improved internal control system and risk control system. The Internal Control Audit Scheme (Trial) andthe Internal Control Evaluation & Assessment Scheme (Trial) were formulated in accordance with the Company Law, the Securities Law, and the Basic Criteria ofEnterprise Internal Control, and periodic disclosure of the Internal Control Self-Assessment Report, the Internal Control Authentication Report and the Audit Reporton the Assessment of Risk Continuity of Finance Companies and the Report on the Deposit and Usage Condition of Raised Funds were carried out. Meanwhile, theCompany made its Risk Control Committee play a further role, carried out internal control self-evaluation and assessment per annum within the whole company tocope with its operations risks. Besides, the Company noticed the risk in environmental protection, and carried out energy planning, carbon neutral and water balanceprojects accordingly, so as to include environment, social and governance (ESG) and related risks in its corporate risk control step by step.
· Laws, regulations and policies shall be implemented thoroughly, and scientic and standardized risk-management system shall be built comprehensively onthe principle of legality, safety and effectiveness, so as to improve the Company's capability in prevention and control and efciency, and to safeguard the sta-ble running of operation and management.· Such works as risk identication, prevention and control of every risk control group shall be supervised.It shall be in charge of the deliberation of risk detection report of every risk control group and of supervision in implementation of the report upon its beingpassed.
Financial ManagementRisk Control Group
Investment and LawRisk Control Group
Asset ManagementRisk Control Group
Risk Prevention andControl Committee
Corporate GovernanceRisk Control Group
Other RiskPrevention & Control Group· It shall divide and carry out risk control at this level in accordance with functions, grasp and supervise the risk prevention and control of tier-1 subsidiary, andits establishment of risk control measures.· It shall establish risk accounts related to each subsidiary respectively, and supervise and urge it to take measures to control risks seasonally.· It shall carry out test check in line with the accounts, inspect major potential risks, produce a report on special inspections, put forward suggestions for recti-cation, and report to Risk Prevention and Control Committee for deliberation.
To further reinforce the awareness of Party members and cadres in incorruptibility and self-discipline, and to carry out "Learning from Cases to Facilitate Improve-ments" in manner of addressing both symptoms and root causes, the Company shall adhere to the basis of "cases", the key of "facilitating", and the goal of "improve-ment, improve party conduct, strengthen discipline, and ght corruption as a whole, and actively develop integrity-themed vocational training sessions, incorruptibilityeducation and warning education, so as to improve the supervision system and prevent incorruptibility risks effectively. The Company shall also maintain a "zerotolerance" attitude to punish corruption, investigate and prosecute corruption in accordance with discipline and law, and launch supervision over the whole process ofmajor project investment.
Two Major Bases for Internal Control System
Organization Structure and Responsibility Scope of Risk Prevention and Control Committee
The High-quality Development of Internal Review Transformation of the New Era
During the Reporting Period, Wuliangye won the honor of "national advanced enterprise for typical experience in internal au-
dit for promoting organization to implement major policies and measures of the Party and the state thoroughly";The review audit for project budget (settlement) and procurement budget saved the Company's funds of RMB186,000,000;Internal audit personnel on secondment were cited by Provincial Party Committee Inspection Group, Municipal Party Committee InspectionGroup and audit institutions.
Depth of UnderstandingThe Party Committee Attaches
Great Importance
The Intensity in Execution of DutyAround the Center of Overall
Situation
Rectication IntensityEmphasis on Audit Closed Loop· Secretary of Party Committee shall ear-nestly perform duties in internal reviewmanagement of main person in charge;· The Company's Party Committee shallcarry out the overall planning on internalreview development, deploy work focus,implement the main responsibility forrectication, and build such mechanismsas audit accountability and internalcollaborative supervision;· The Company's Party Committee shall
strengthen various conguration andsecurity of internal review work.
· It shall implement the three-year actionplan for the reform of state assets andstate-owned enterprises, establisha ve-year rotational audit plan foreconomic responsibility audit of cadres,and achieve diversied sector audit ofcomprehensive coverage.· It shall implement major policies andmeasures of the Party and the state andthe Company's strategies thoroughly,and carry out policy tracking audit onthe basis of business reality.· It shall focus on internal governance,and strengthen risk audit.
· It shall establish rectication account-ability system, and advance closedloop management for rectication andcancellation together with internalsupervision force;· The audit ndings shall be linked to
cadre's assessment, reward and pun-ishment, appointment and removal, andperformance;· It shall combine with the Company'sstrategy of implementing "backward-ness and forwardness" in subsidiaries,and clear out four "zombie enterprises"timely.Internal Controller System
Internal Control Assessment
System
Internal Control Self-Assess-ment SystemWorkload CongurationWork Development Basis
InternalControl System
2728
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
It shall persist in preventing and controlling incorruptibility risks inmanner of addressing both symptoms and root causes.To advance the establishment of the system for preventing and controlling incorruptibility risks, sticking to the combined practice of punishment and prevention, theCompany printed and distributed the Notication on Setting up a Leading Group for Establishing the System of Investigating and Afxing the Responsibility in IllegalOperation and Investment, the Implementation Measures for Investigating and Afxing the Responsibility in Illegal Operation and Investment, the Accountability Regu-lations on Violations of Laws and Rules and Wrongdoings, and other system documents. It also enforced seriousness in conducts and discipline to complete "Learningfrom Cases to Facilitate Improvements", to screen and update incorruptibility risk areas, and to rene prevention and control measures and launch prevention againstimproper related-party transactions.
Double-guarantee practice in enforcing seriousness in conducts and discipline and "Learning from Cases toFacilitate Improvements"
Highlighted Practice in the Prevention and Control of Incorruptibility Risks
During the Reporting Period, in terms of enforcing seriousness in conducts, discipline and accountability:
The Company handled 39 problematic clues, put 6 cases on record, gave 8 people party disciplinary sanctions upon verifying disciplinary violations,
andgave 12 people administrative penalties, 10 people received oral or written warnings, 20 people received criticism and education and 98 peoplereceived reminder conversations.
In terms of "Learning from Cases to Facilitate Improvements":
The Company's Party Committees at all levels held meetings (Party branch committee) on "Learning from Cases to Facilitate Improvements", warning ed-ucation meetings and learning and education meetings. They also shoot an inside lm Strayed Away for warning, which was viewed by times cumulatively,organized over people to visit discipline and law education bases, and interviewed more than personnel of important jobs at their home on incorruptibility. Theyorganized or so leaders and cadres to sit on court trials of cases in a hierarchical manner and through batches, revised, improved and established over sys-tems, analyzed issues, and completed rectications in a high-quality manner.
During the Reporting Period, through major projects tracking audit, progress payment of RMB352 million was lessoned after au-dit; through pre-audit and concurrent audit on procurement, procurement funds of RMB3,072,300 was saved by meansof reviewing the reasonableness of procurement control prices, procurement methods, supplies disposal and the likes of 65
proj-ects; the Company's procurement funds of RMB
73,739,800 was jointly saved with the constituent units of supervisingthe opening of the tender by means of engaging in the supervision on procurement bidding and reviewing the compliance for biddinglinks of 478 projects.
Enforcing Seriousness in Conducts, Disci-
pline and Accountability
It shall center on the Company's central tasksand major strategies, and stick to problem-ori-ented guidance to assist the Company instandardizing management, improving qualityand efciency, and preserving and increasingthe value of state-owned assets.
It shall focus on important fund, coreresources, major jobs and cadres' signicanteconomic behaviors, and conduct economicaccountability audit on internal managementcadres.
In line with the stipulations in Measureson the Audit of Economic Accountability ofInternal Management Cadres, major issuesshall be handed over to discipline inspectionand supervision departments.
A whole-process tracking audit shall becarried out around major projects investment.
Strengthening supervision through "Learningfrom Cases to Facilitate Improvements"Prevention and
Control ofIncorruptibilityRisks
It shall conduct the pre-audit and concurrentaudit on procurement, and review the reason-ableness of procurement budget prices.
Procurement AuditEngineering Audit
Prevention the Practiceof Incorruptibility Risks
Prevention, Control and Manage-ment of Incorruptibility Risks
It shall engage in the supervision of bidding,and review the compliance in the biddinglinks.
Economic Responsibility AuditEconomic Benet and Special Audit
2930
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYEThe Safeguard Mechanism for Implementing Anti-corruption
Multi-dimensional Joint Supervision
Realization Path for Joint Supervision System
Supervision systems shall be improved and clean state-owned en-terprises shall be built.
To advance the establishment of "clean state-owned enterprises", the Company built and improved joint supervision systems, formulated Implementation Opinionson the Establishment of Joint Supervision System, set up leading groups for joint supervision, and created ve mechanisms for special feedback, joint meetings, jointsupervision, clues transference, and mutual communication and mutual learning to further coagulate joint forces of normal and long-lasting supervision.
Mutual Coordination
Organic Linking
·Regulations on Complaint and Reporting of Discipline Inspection and Supervision and Regulations on Executing of Discipline Inspec-tion and Supervision were formulated and carried out.Meetings for screening issues and clues were held at xed period.Clues related to business ethics violation and corruption were analyzed, studied and judged.Inquiries through conversations and letters, initial verication and case ling investigation were carried out in line with stipulations onrepresented issues.
A special operation on "Serious Discipline throughout Four Seasons" was developed, and the quality and e?ciency ofsupervision were improved.
The Internet supervision and supervision within the Party were integrated, and network supervision platforms facilitatedthe carrying out of anti-corruption in an innovative and e?cient manner.
Case
Case
The Company sticked to requirements in the "Year for Supervision Quality Improvement" of the Municipal Commission for Discipline Inspection and Supervi-sion, printed and circulated Action Plan for the Special Operation in the Year for Supervision Quality Improvement, carried out the special operation on "SeriousDiscipline throughout Four Seasons" in a deep-going way, and determined a key supervision point every quarter to achieve "One Theme One Season, Opera-tions throughout Four Seasons". During the Reporting Period, the Company launched 83 joint supervision and issued 21 Notications on Issue Rectication.
The Company integrated Internet and supervision within the Party in an organic way, and exploited the political advantages of "Internet Plus" in supervisionwithin the Party to the full. In 2018, it developed a "Platform for Supervision within the Party and Accountability Supervision" in an innovative way, which renedsuch responsibilities as the Party Committee's responsibility for overall supervision, the Secretary of Party Committee's responsibility as the "First PersonAccountable", team members' separate responsibilities in supervision, and the Discipline Inspection Commission's special responsibility for supervision into"Nine Lists", to achieve responsibility specication, responsibility execution, and responsibility investigation and afxation in line with the lists. The platform wonthe award nomination for the Second China Incorruptibility Innovation Award, and received high evaluation and vigorous promotion form the Municipal PartyCommittee, Municipal Commission for Discipline Inspection and Supervision, and Municipal State-owned Assets Supervision and Administration Commissionof Yibin City to be widely promoted and applied in more than 30 state-owned enterprises at the provincial and municipal levels.During the Reporting Period, the platform completed over
4,000
tasks, a completion rate of
100%
, which not onlyassisted and facilitated the healthy development of the Company and its employees, but also gained favorable public reaction.
Five Work Mechanisms for Joint Supervision System
SpecialFeedback
Joint Meeting
Joint Super-vision
Clue Trans-ference
Mutual Learningand Mutual Com-munication
FinancialSupervision
Supervisionwithin the PartyPlaying a Lead-
ing Role
Supervisionfrom the Super-visory Commit-tee
Other Supervi-sions
Audit Super-
vision
InstitutionalMechanismSupportBehavior Practice
ImplementationIssue and Problem
Handling
Construction of Management System
Establishment of Joint Supervision SystemInstitutional Mechanism Support
· Implementation Opinions on the Establishment of Joint Supervision System was formulated and mechanisms for linked and collaborative work between theParty's supervision within the Company and other types of supervision were established.
Implementation of Work Actions
· Leading groups for joint supervision and responsible for joint supervision on all fronts were set up.
3132
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Incorruptibility education was carried out in di?erent levels and areas
Incorruptibility education was carried out to improve party conductand strengthen discipline strictly and impartially.
The Company adhered to a hard way of warning education to carry out "Learning from Cases to Facilitate Improvements", and organized Party members and cadresin a targeted way to such places as red education bases, incorruptibility education bases, and discipline and law education bases to appreciate incorruptibility stories,to review the pledge of party membership, and to receive the baptism of incorruptibility culture.
"Critical Minority" as the TargetThe Party members and cadres shall be respectful, be wary, and hold
the line.
Being carried out in a targeted and classied way and in di?erent levels and areas to improve accuracy and e?ciency.
The Company organized leadership team members and middlemanagement members to "Qing Feng Hall", a demonstration spotof incorruptibility education for state-owned enterprises in SichuanProvince, to receive warning education.
It also organized visits to red education bases, incorruptibility educa-tion bases, and discipline and law education bases.
The Company organized leadership team members and middle man-agement members to sit on case trials in Pingshan County People'sCourt.
"A Talent on Incorruptibility", an on-line knowledge competition, washeld, and "Incorruptibility Packages" were handed out.
The Company organized leadership team members, Secretary ofprimary-level Party organizations, Secretary of the Commission forDiscipline Inspection, cadres of Discipline Inspection and Supervisionto visit and learn at Tianfu Family Traditions Museum, an incorrupt-ibility base in Sichuan Province.
"Paintings and Calligraphies in Praise of the One-hundred-year Path,Light and Shadow to Dream a New Journey", a painting, calligraphyand photography exhibition of employees' incorruptibility culture, washeld.
General Party Members as the TargetGeneral Party members watched the inside warning education lm
Strayed Away.
On 14 May, the Company organized leadership team members,assistants of general managers and main person in charge of Partyorganizations in sub-groups to "Qing Feng Hall" to receive warningeducation.
On 29 November, the Company organized visits to Tianfu FamilyTraditions Museum to carry out incorruptibility education.
On 21 October, the Company organized a painting, calligraphy andphotography exhibition of employees' incorruptibility culture in state-owned enterprises.
On 31 December, the Company's Discipline Inspection Commissionorganized work seminars themed "Learning from Cases to FacilitateImprovements and Governance" in food inspection system.
Incorruptibility
Education
3334
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Digital Transformation and UpgradeTo grasp the strategic opportunity of "Digital China", the Company advanced the operation of "Cloud Service Promotion, Big Data Usage, and Intelligentization Endow-ment" on all fronts, and further implemented the digital transformation strategy. The Company established the industry's rst-class intelligent retail system, digital man-agement system, digital business innovation system and the industry's digital transformation benchmark, with the advancement of deep integration of the next-genera-tion information technology and the manufacturing industry as the main line, with the marketing digital transformation as the breakthrough, continuously promoted thetransformations of digital empowerment businesses, abilities and management, and established digital enterprises of national industry leader on all fronts, to createnew drivers of growth and new advantages for enterprise's high-quality development.
The Digital Management System of 2021
Path for Digital Transformation and Upgrade
Double-security Mechanism for Digital Transformation
Activating data value to empower the Company's improvement in governance ability
Improving the abilities in data collection, analyzing and handling, and deepening the expansion of big data applications
Case
Case
The Company accelerated the establishment of the foundation platform for the data safety of modern enterprises, set up operation digital platform, activatedenterprise's data value, and was devoted to establish "Digital Wuliangye". The Company advanced the implementation of Enterprise's Resources Plan (ERP)project on all fronts, combined internationally advanced management experience with Wuliangye's digitalization, boosted the revolution and reengineering oforganizations, processes and so on inside the Company, and explored an ERP construction path that is suitable for Wulingye's reality.Meanwhile, the Company conducted strategic cooperation with third parties, continuously carried out the establishment of data governance system, and printedand circulated Administrative Measures for Wuliangye's Data Classication. It also continuously optimized the functions of master data management platform,managed data on the basis of normalization and standardization, established systems of digital command center and marketing decision-making center, andefciently collected and used data assets so that it enabled enterprise's data value to be constantly activated and its insight could be continuously improved onthe basis of data. The Company's innovation achievements in production, marketing, logistics, storage, security and protection and other areas on the basis ofsuch technologies as big data, Internet of things, blockchain, and articial intelligence all contributed model applications to the industry.
During the Reporting Period, the Company deepened the project application results of the big data center of China's liquor industry on a continuous basis.First, it excavated and analyzed the integrity of RMB8 million liquor enterprises and merchants via the big data project on integrity of China's liquor industry,explored the release way of the integrity index in the liquor industry, guided honest liquor enterprises and merchants to perform the authentication for integrity,and explored a new application model for integrity assessment in liquor industry. Second, it achieved Internet of Things monitoring over the link of making dis-tiller's yeast via the on-line monitoring of distiller's yeast-making progress and the big data mining project for crafts. Meanwhile, the Company conducted deepanalysis and excavation on the management of bacterial culture of distiller's yeast, and built mechanical learning model for material, craft and the quality ofdistiller's yeast to explore a big data plan for optimizing distiller's yeast-making.
Leading
Support
ActivationExpansion
Integrating with BusinessScenariosNew Exploration
DigitizationTransforma-tion Strategy
With the guidance of building the industry's benchmarkof digital transformation.
Sticking to the escort of organization system security forthe advancement of digital strategies
With organizations, systems and data as the core basesall along to carry out digital transformation.
With data as the main line to focus on the establishmentof data governance system.
Sticking to theleading role ofstrategies
Continuouslyoptimize organi-zation security
Focus on mas-
tering the corebasisBuild datagovernancesystem
Constructionand OperationDigital Platform
NetworkSafety Sys-tem
Focusing on Mar-ketingDigital Transfor-
mation
Big DataDeepeningApplication
New ModesNew PlansStriving to Create"Zero-carbonLiquor Enterprise"SupportKnowledge Em-powerment
CorporateData Value
A Plan to Spend Approximately RMB1.5 billion on the Establishment of DigitalTransformationFund Security
Administrative Measures for the Implementation and Assessment of ERP Proj-ects (in Trial)Administrative Measures for the Problems and Decisions of ERP Projects (inTrial)Administrative Measures for the Front and Back Operation of Marketing DigitalApplication System (in Trial)Administrative Measures of Data Classication (in Trial)
Institutional Assurance for the Establishment of Digital ProjectsImproving the E?ciency of Decision-making ProgressImproving the Quality of Digital Technical Services
Enhancing the Management of Data Safety Risks
DigitizationTransformation
Constitutional andInstitutional Assurance
Fund and ResourcesSecurity
3536
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Relying on new technologies in digitalization to create intelligent Wuliangye
Building network safety system to escort digital transformation
Case
Case
During the Reporting Period, under the guidance of the vision for striving to create "Zero-carbon Liquor Enterprise", the Company followed PDCA AdministrativeSystem to effectively advance and continuously improve the development of integration of "information technology and industrialization" inside the enterprise,to build intelligent resource platform for real-time monitoring of carbon footprint in production and running, to form basic database for carbon footprint, andto provide scientic basis for decision making in reaching the goals of carbon emission peak and carbon neutrality. In the meantime, the Company deployedaround GIS demonstration, and risk spots management platform, with double control in safety and production as the core and GIS geographic informationtechnology as the basis, and formed real-time safety management system for information distributed in four colors, namely "red, orange, yellow, and blue", toeffectively improve safety management efciency.
The Company thoroughly implemented such laws and regulations as Cyber Security Law and Data Safety Law, introduced new technologies of cyber secu-rity, and built a three-dimensional cyber security system integrated people defense, physical defense and technical defense to reach zero accident and zeroincident of cyber safety inside the Company . The Company also thoroughly implemented national information safety protection at different levels, createdsafe space for digital transformation, and planned to create mutual connection and communication between remote special line date and backup for disasterrecovery to reach digital transformation via the escort of full-dimensional control, full-network protection, round-the-clock operation. It also conducted regularand coordinated offensive and defense drills with municipal Ofce of the Central Cyberspace Affairs Commission to test the Company's cyber security defenseability in actual combats.
During the Reporting Period, the Company's digital transformation achievements were as follows:
It has been recognized as the rst digital transformation promotion center of the industry in Sichuan Province;It has been awarded"Excellent Practice Unit in Digital Transformation of Enterprises in Western China"by SichuanEnterprises Federation and Sichuan Entrepreneurs Association.
Corporate Social Responsibility ManagementThe Company grasped new opportunities, started a new journey and forged ahead to open a new situation. The Company learned hard from advanced typical expe-rience in social responsibilities governance, strengthened the performance of social responsibilities, and further improved ESG levels. It also demonstrated its socialresponsibilities as state-owned enterprise with practical actions, and was devoted to reach joint sustainable development between enterprises and the society.
Social Responsibility ManagementTo reach high-quality development at higher level, and accelerate its steps in building a green, innovative, and leading world-class enterprise, the Company focusedon the overall improvement of the governance level of social responsibilities on the basis of actual situation, combined its reality with development strategy, plannedan enforceable development path for social responsibilities with key points, and guided the implementation of its social responsibilities on all fronts.
Social Responsibilities/ESG Overall Empowerment
Social Responsibilities/ESG Development Plan
· Social responsibilities/ESG improving plans shall be customized for theCompany.· Planning: Planning strategies for sustainable development to guide therelated work.· Management Optimization: The overall integration of social responsibilitymanagement shall be carried out, and social responsibilities/ESG evalua-tion system shall be formulated.· Rating Improvement: ESG rating management shall be carried out.· Enhancing disclosure: Social responsibilities/ESG information disclosurelevel shall be improved continuously.
Specialized institutions shall be hired to assist the Company in
improving social responsibilities/ESG levels
· Social responsibilities/ESG experts shall be invited on a regular basis toconduct knowledge empowerment for the Company.· It shall conduct special training on a regular basis for directors, supervi-sors, ofcers and other related personnel of the Company in a targetedway, improve related personnel's awareness and business abilities in per-forming environmental responsibilities, corporate governance and socialresponsibilities, and pay a return visit to exchange and communicate.
Trainings shall be organized to improve the overall professional
level of related personnel
Social responsibilities/ESGsystem integrated into the Com-pany's present organizationstructure shall be built to specifyrelated responsibilities.
Completion ofOrganizationalStructure
Combining with the Company'sdevelopment strategy, social re-sponsibilities/ESG system shallbe formulated and improved toensure the implementation ofthe plan.
Improvement
of SystemPlan
Social responsibilities/ESGrelated targets shall be integrat-ed into performance assessmentand work goals of all depart-ments to secure the thoroughimplementation of system plans.
Carrying outIntegrationon All Fronts
The disclosure way of socialresponsibilities/ESG informationshall be innovated, and theinformation disclosure shall becarried out through multiplechannels and angles to continu-ously improve disclosure levels.
EnhancedInformationDisclosure
3738
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
Participation by Stakeholders
Substantive issue analysis
The Company shall recognize issues of concern of all stakeholders on the basis of business and operation realities, keep an open mind to listen and communicateactively, and response with efciency to the concerns from all stakeholders on the topic of the Company's social responsibilities.
In 2021, Wuliangye carried out investigations on stakeholders, and identied key and concrete topics, on the important basis of which the Company continued to carryout social responsibility management and information disclosure of social responsibilities.
Degree of attention of stakeholders
Active efforts to pay tax in accordance with lawImprovement of corporate governanceCarrying out risk control on all frontsExtensive employmentCarbon emission reduction throughout the whole pro-cessInnovation in rural revitalization modeProactively participating in social undertakings
Tax payment according to lawsCompliant operationAnti-corruptionPromotion of economic develop-mentClimate actionPoverty alleviationPublic welfare and charityGovernments andregulators
Increasing cash dividendHolding general meeting of shareholdersInnovation and improvement in information disclosuremodeImprovement of return of invest-mentProviding shareholder servicesEquitable access to informationShareholders and
investors
Increasing innovation and R&DImprovement of quality controlGuarantee service qualityAdvocating rational drinkingMeeting multiple needsGuaranteeing product qualityProvide high-quality serviceAccountable MarketingCustomers
Establishing open and transparent procurement mecha-nismImprovement of industry-university-research-applicationcooperationParticipation in the formulation of industry standardPromotion of joint progress of the industry
Fair and just procurementAbiding by business ethicsIntegrity and mutual benetPromotion of industry developmentSuppliers and theindustry
Wuliangye's Communication with Stakeholders
Substantive issue analysis
Ways and Demonstration of CommunicationIssues of ConcernStakeholders
Optimizing labor managementImprovement of compensation and benets systemImproving employee training and career developmentsystemGuaranteeing the smoothing operation of labor union andthe congress of workers and staffCarrying out employee activities
Health and safetyRemuneration and benetsCareer training and developmentDemocratic communicationCare for employeesEmployees
Establishing "Zero-carbon Liquor Enterprise"Ensuring compliant emissionCarrying out public welfare activitiesEnergy conservation and consumptionreductionEmission reduction and pollutionreductionSupporting community developmentThe Public
Ways and Demonstration of CommunicationIssues of ConcernStakeholders
Party Building
Establishment of Modern Industrial System
Culture Inheritance
Quality controlCorporate GovernanceBusiness PerformanceEnvironmental Protection
Occupational Health
Common industrial progressGeneral Charity and Welfare
Rational DrinkingRural Revitalization
Zero-carbon Liquor EnterpriseSafe Production
Accountable MarketingCommon ProsperityBrand Building
Supply Chain Management
Degree of impact on the Company's sustainable development
3940
TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TechniquesPremium Products throughAncient and Modern Efforts
Innovative products inheriting craftsmanship, long-standing distillation techniques andquality control supported by technology make the world-renowned representative ofChinese strong avor Baijiu - Wuliangye. As a famous national brand, Wuliangye hasalways been committed to the protection, research and dissemination of traditionalChinese Baijiu culture, making baijiu a carrier to enhance friendship and cultural ex-changes among people from all over the world, so that the world can continue to feelthe charm of the "harmony" culture of Chinese Baijiu.
· Craftsmanship-embedded Innovation· Technique Inheritance· Quality Management· Culture Inheritance
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TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
Craftsmanship-embedded InnovationWhile inheriting craftsmanship-embedded products and techniques, Wuliangye empowers future development with innovation, implements the requirements forhigh-quality development of Baijiu, takes the consumer market demand as the guidance, and meets the diversied demands of consumers for Baijiu.
An innovation management system
Guaranteeing continuous innovation by improving regulationsWuliangye adheres to pragmatic, efcient, innovative, open and inclusive work ethics, and sees transferring basic application research and scientic achievementsinto actual innovations fundamental for its development. It has formulated multiple policies including the Regulations on Scientic and Technological Research Man-agement (Trial) and the Regulations on Research Expenditure (Trial) to standardize the management of innovation processes including industry-university-researchcooperations, management of scientic and technological equipment, and awarding and protection of scientic and technological achievements.
Whole-process manage-ment
Wuliangye formulated the Regu-lations on Scientic and Techno-logical Research Management(Trial) and the Regulations onResearch Expenditure (Trial)to clarify the whole-processmanagement procedures forscience and technology R&Dprojects and ensure the smoothcarrying-out of the projects.
Industry-university-research cooperationsWulianye revised three regulations related to the key national laboratory of solid-state distillation of strongavor Baijiu of the Chinese light industry, including the Regulations on the Management of Post-doctoral Sci-ence and Technology R&D Stations and the Work Regulations for the Key National Laboratory of Solid-stateBrewing of Strong Flavor Baijiu of Chinese Light Industry.
Management of scientic and technological equipmentWuliangye formulated the Regulations on Management and Disposal of Test (Experimental) Devices for Sci-entic Projects (Trial) to standardize the handling procedures for scientic and technological equipment andintegrate its idle equipment for science and technology R&D, greatly improving the success rate of R&D.
Awarding of scientic and technological achievementsWuliangye revised the Implementation Rules on Awarding Scientic and Technological Achievements and theImplementation Rules on Awarding Minor Innovations and Progresses, forming a preliminary system of fullcoverage and clear hierarchies to award innovation achievements.Protection of scientic and technological achievementsWulianye formulated the Implementation Rules on Trademark Management, Implementation Rules on PatentManagement and Implementation Rules on Copyright Management to create a healthy environment for sci-entic and technological innovation.
In 2021, Wuliangye integrated external R&D resources, and continued to enhance enterprise-university-research cooperations with Sichuan University of Science &Engineering, Jiangnan University and Beijing Technology and Business University, as well as the conversion of innovation results, seeing a record high of its innova-tive scientic and technological achievements.
In 2021,· Formulated 4 enterprise standards, with a yoy increase of 100%.Published 28 scientic research papers, with a yoy increase of 47.37%.· Applied for 265 new patents, including 23
invention patents, 20 utility model patents and 222
appearance design patents.· Had 238 authorized patents, including 5 invention patents, 15 utility model patents and 218 appearance design patents.· Won3 awards, including the Best Style Award of the Most Beautiful Winebottle Design and the silver and bronze awards of the Most Beautiful WinebottleDesign· Won2 awards, including the golden and bronze awards of 2021 Tianfu Baodao Industrial Design Competition.
· Wuliangye's technical center won the top in the liquor industry with
82.3 points in the 2021 Annual Appraisal Results of the National Enterprise Technol-
ogy Center issued by the National Development and Reform Commission.· Wuliangye's appearance design patent, Winebottle (for New Wuliangye Product 181) (i.e., the 8th-generation Wuliangye winebottle), won the third prize of 2020 Sichuan Patent Award.· Wuliangye's "Research and Application of Wuliangye Baobaoqu Quality Improvement Technology" Project won the rst prize of 2020 Science andTechnology Award of China National Food Industry Association.· Wuliangye's "Research and Application of Exogenous Food Safety Risk Assessment Method for Brewing" Project won the second prize of 2020Science and Technology Progress Award of China National Light Industry Council.
Industry-university-research cooperation
Improving the quality of Baijiu in cooperation with Sichuan University of Science & EngineeringCaseWuliangye, working with Professor Luo Hui's team from Sichuan University of Science & Engineering, had a systematic study and on the microbial ora ofWuliangye Baobaoqu. They tackled key problems and made signicant progress in the research of the driving forces of the microbial community succession.The research result, Environmental factors and interactions among microorganisms drive microbial community succession during fermentation of Nongxiangx-ing daqu, was published in Bioresource Technology, an international journal of biological engineering and application of microbiology (affecting factors 9.642,TOP journal of Zone 1 of the Chinese Academy of Sciences).This study result is the latest achievement in the in-depth and comprehensive cooperation between Wuliangye and Sichuan University of Science & Engineer-ing, the promotion of further enterprise-university integration and the resolution of important scientic problems in industrial development. It is of signicant sci-entic value for the control of microbial ora of Baobaoqu in the fermentation process, the improvement of Daqu's quality and the advancement of the increaseof Baijiu's high quality rate, and will further boost the technological progress and quality improvement of Baijiu.
4344
TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
Revealing the secret of good liquor in cooperation with Jiangnan University
Guaranteeing industry-university-research cooperations by building the international scientic joint avor laboratory
Case
Case
Wuliangye worked with Professor Xu Yang's research group from Jiangnan University to tackle key problems in industry-university-research cooperation, andhas published The Ecological Adaptability of Caproic Acid Contributes to Its Dominant Position in Anaerobic Fermentation System and Caprobacter Lactate: ANew Microbial Species Isolated from the Cellar Mud for the Production of Strong Flavor Chinese Baijiu on international authoritative journals. The former is therst to discover and successfully identify a new species of hexanoic acid bacteria, the main body of strong avor Baijiu distillation, and further reveals the avorand alcohol genes of Baijiu from the scientic perspective, marking a breakthrough in the scientic and technological innovation in the eld of food and fermen-tation industry in China. The latter makes available scientic and standardized naming and accurate annotation for the species and scientic classication ofhexanoic acid, the main body of strong avor Baijiu distillation, that had puzzled Chinese Baijiu researchers for over half a century.
With the support of International Joint Research Center of Quality and Safety of Alcoholic Beverages and the guidance of foreign experts, Wuliangye estab-lished Wuliangye International Scientic Joint Flavor Laboratory (Wuliangye Scientic Collaborative Flavor Innovation Center) following international standards,and equipped it with a number of globally leading high-end equipment and rst-class supporting facilities for the scientic research of avor. The laboratory hasbecome a cutting-edge innovation platform to promote the high-quality development of Wuliangye and lead the avor research of traditional Chinese Baijiu.In 2021, the team of the lab, guided by foreign experts, attended the three famous international professional academic conferences, namely the ACS (Amer-ican Chemical Society), IFT (International Institute of Food Science and Technology) and Weurman, and presented posters, playing an active role in buildingthe platform for academic exchanges between Wuliangye and domestic and foreign peers. The team published a scientic paper on Molecules, a well-knownforeign journal, in which it, for the rst time among peers, put forward a new method for the research of Baijiu avor that is easy to operate and has good repro-ducibility. It is of great signicance for the quality improvement of Baijiu, and will effectively enhance global consumers' awareness of the scientic innovationand quality management of Chinese Baijiu represented by Wuliangye.
Jiangnan University-Wuliangye Collaborative Innovation Laboratory
As the pilot enterprise of standardization and standard implementation of intellectual property management among Sichuan enterprises, Wuliangye implements stan-dards in an all-around manner following the Regulations on Enterprise Intellectual Property Management, and has timely revised the Intellectual Property Manage-ment Handbook, Procedural Document and other system documents, rened 12 control procedures including the procedures for trademark management and patentcontrol, and obtained the IPMS (Intellectual Property Management System) certicate.
Intellectual property management
Improving all employees' awareness of intellectual property protection by organizing training
Case
In order to actively improve all employees' awareness of intellectual property protection, Wuliangye organized the 2021 Intellectual Property Publicity Weekthemed on "comprehensively strengthening intellectual property protection and promoting the construction of a new development pattern", and offered specialtraining on the building and operation of the intellectual property management system and brand intellectual property risk control covering technical innovation,contract management, advertising and marketing and other contents related to intellectual property for full-time and part-time intellectual property personnel inrelevant functional departments, subsidiaries and workshops. It also engaged provincial and municipal intellectual property protection centers to offer specialtraining on high-quality patent mining and patent technology document writing for R&D and technical personnel.Meanwhile, Wuliangye played educational intellectual property videos on all its LED screens and in all its elevators, and publicized intellectual property knowl-edge to all employees on its legal service column in Wuliangye Family, OA knowledge platform, WeChat group, QQ group and other carriers from differentperspectives, through different channels and in different forms, so as to improve the awareness of intellectual property protection.
Training on the practice of intellectual property standard implementation
IPMS certicate
4546
TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCEProviding innovative products based on demandsIn 2021, Wuliangye, following the principle of "three characteristics and one recognition" and based on the investigation and analysis results of market demands, aswell as product development strategies, focused on the development of innovative products, such as 39° Wuliangye, 1618 Wuliangye, and Wuliangye Harmony-seriesproducts, which, aiming at high end, internationalization and youth, meet customers' demands at all levels.
In 2021, Wuliangye continued to enhance the development of two core pillar products for the high-end market, namely the 8th-generation Wuliangye and ClassicWuliangye, and has basically completed the building of the main product structure to meet the diversied demands of consumers.
In 2021, Wuliangye gathered superior design resources to develop single star products, and launched 2nd-generation Wuliang Chun (Spring) series, MingMen series,Wuliang Chun (Rich Flavor) ChunPin series, Jian zhuang 1911, Renyin Lunar Tiger Year series and popular concept series, enriching the brand product matrix andproviding consumers with diversied choices.
Wuliangye's main brand products
NongXiang series Baijiu
Meeting consumer demands by enriching the product structure
Launching Harmony-series to pay tribute to Chinese culture
Meeting consumers' demands by upgrading Wuliang Chun (Spring)-series products
Case
Case
Case
In order to meet the diversied demands of consumers, including collection and gifting, Wuliangye sold limited-edition Wuliangye Bubu Gaosheng packages,containing one 50ml product, one 100ml product, one 250ml product, one 375ml product, one 500ml product, one 750ml product and one 1,000ml product, inaddition to its core product, the 8th-generation Wuliangye. Bubu Gaosheng packages symbolize promotion and prosperity, and are loved and praised by con-sumers.
Harmony-series products are based on excellent traditional Chinese culture, integrate the history and culture, cultural customs and landmarks of different prov-inces, municipalities directly under the central government, autonomous regions and special administrative regions, focus on high-end consumption scenarioswith regional characteristics with regional and cultural properties, as well as rareness and topicality, so as to strengthen the correlation between Wuliangye andregional markets and scenarios.
In the first half of 2021, Wuliangye upgraded Wuliang Chun (Spring)-se-ries products to 2nd-generation Wuliang Chun (Spring)-series products inresponse to market changes. The package design of the products was theupgrade strategy of the 8th-generation Wuliangye with minor adjustmentsand updates, making no subversive changes to the overall image. All theproducts were included in the "one code for one bottle" traceable marketingsystem, and were provided with anti-counterfeiting box labels specic to thestructural characteristics of the new package design.
Wuliangye Bubu Gaosheng
(Harmony Wuliangye) Wuhan (Harmony Wuliangye) Macao
2nd-generation Wuliang Chun (Spring)-series products
4748
TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
Launching the popular 2021 concept series focusing on emerging consumers
Improving consumer experience in an all-around way by making innovations at the sourceCaseCaseIn 2021, based on the brand position of taking popular liquors as "entryluxury liquors", Wuliangye successfully launched the popular 2021 conceptseries and sold only 10,000 limited-edition bottles of the series to emergingconsumers interested in entry luxuries in 2021 through online operation. Thepopular 2021 concept series paid tribute to the high-end and fashionablebrand tone and exquisite lifestyle with a new productism and from the indi-viduation perspective, meeting diversied demands of high-end consumergroups and creating the choicest sophisticated liquor in the industry.
At the very beginning of designing Wuliang Chun (Spring) MingMen-series products, Wuliangye took full consideration of consumer experience, includingopening experience and tactile experience. It adopted a non-destructive opening method for the package box of the product, and adopted integral one-off un-screwing for the cap. It also extended the handling part of opening, so that consumers can open it easier. For the box, it adopted new paper-plastic-combinedtechnology, leather-feel-imitated materials and other new technologies and materials to further improve the tactile experience of the box.
Popular 2021 concept series
Wuliang Chun (Spring) MingMin-series products
Optimizing consumer experience by upgrading the package
In 2021, Wuliangye fully upgraded the package opening structure and design to improve consumer experience and provide consumers with better opening and tactileexperience.
Improving opening experience by upgrading the package structureCaseWhile upgrading the 8th-generation Wuliangye, Wuliangye re-designed the cap structure, so that consumers can remove the outer cap with bare hands withoutusing special tools. The inner cap in the package can still be destroyed at once, but an ergonomic opening puller is provided, so that consumers can easilyremove the cap, which comprehensively improves consumer experience while meeting the demand for anti-counterfeiting.
Optimizing the opening method
Technique InheritanceThe traditional Baijiu-making techniques of Wuliangye are listed as a national intangible cultural heritage. Wuliangye always guards the honor of "Time-honored Brandof China". In producing its products, Wuliangye follows the "nature-oriented, time-honored, inherited and developed, craftsmanship-embedded and skillful" traditionaltechniques and adheres to the ancient motto of "excellent materials, proper timing, in-place work and nd method", so that the traditional distillation techniques ofWuliangye can be passed down from generation to generation. Sticking to inheritance for ancient and modern strong-avor liquorsAdhering to the modern production philosophy of "high quality, high yield, low consumption, balance and safety", Wuliangye summarizes and extracts its techniquescharacterized by "ve-grain formula, Baobaoqu block, circular fermentation, solid-state vinasse renewal, mud pit fermentation, level-based vinasse removal, mixedsteaming and boiling, level-based vinasse input, quality-based liquor selection, quality-based blending, grade-based storage and carefully blending" and the four-wordessence, namely "distillation, selection, rest and blending", of its traditional distillation techniques. Oral tutoring and passing on from generation to generation give birthto Wuliangye's style of "long-lasting aroma, rich avor, and well-balanced and clear taste".
4950
TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
Representative inheritors of the representative projects of Wuliangye's traditional distillation techniques declared in 2021:
Zhao Dong and Fan Guoqiong were recognized as representative inheritors of provincial intangible cultural heritage;Liu Ming, Li Xi and Shi Degang were recognized as representative inheritors of municipal intangible cultural heritage;Fu Gangyuan, Chenqiao, Zhangjie and other four were recognized as representative inheritors of district intangible cultural heritage.
Exploring perfect techniques with craftsmanshipWuliangye always sticks to traditional techniques, continuously improves the recognition of cultural identity of producers, has formulated relevant standards and poli-cies, cultivates core skills of "vinasse-based ingredient making", "distillation of grains in retorts", "quality-based liquor selection" and "quality-based blending", followsthe apprenticeship model in daily work, and keeps exploring and carrying forward its perfect techniques in inheritance.
Wuliangye established the "Craftsmen Incubator" named after crafts-men and gave full play to the role of "Craftsmen Incubator" skill leadersas "leading wild geese".
Wuliangye implemented the "one-to-one" apprenticeship model torequire excellent skill group leaders to sign apprenticeship agreementswith young employees for paired-tutoring. Tutors teach apprenticesskills to inherit traditional techniques.
Skill-passing-on methods
Inheriting traditional distillation techniques and improving employees' skillsCase
In order to promote high-quality development of traditional distillation techniques while inheriting the techniques and making innovations, Wuliangye intensiedthe targeted training on production process operation, production site management and distillation tasting and evaluation skills for production managementpersonnel and team leaders in all workshops based on its actual situation and routine training, for example, training on vinasse-based ingredient making, un-blended liquor quality evaluation, distillation of grains in retorts, liquor selection and blending, Qu-preparation management and Daqu quality evaluation. Thetraining was mainly in the form of on-site practice training, with point-to-point on-site demonstration. Employees attending the training had their professionalskills improved through on-site training, visiting, comparison of physicals and on-site communication.
Qu-preparation under medium to high
temperature (Shaping, bacteriumculture) skill competition
Vinasse-based ingredient makingskill competition
Distillation of grains in retortsskill competition
5th MunicipalUnblended liquor tasting and evalua-tion skill competition
Building the "Craftsmen Incubator" platform
Implementing the "Young Employee Cultivation"
apprenticeship program
1. Five-grain formulas
36% of sorghum, 22% of rice, 18% of glutinousrice, 16% of wheat and 8% of corn.
4. Solid-state vinasse renewal
New raw and auxiliary materials are added tofermented vinasse at a reasonable proportionto ensure appropriate physical contents andnutritional compositions of the materials of thenext round, so as to ensure a reasonable andcontrollable fermentation process.
7. Mixed steaming and boiling
It is not only the gelatinization process of thenewly added raw materials for distillation butalso the separation and concentration processof alcohol and avor substances in fermentedvinasse, which emphasizes the retention of theunique characteristics of vinasse of differentlevels.
10. Quality-based blending
As per principles "like dissolves like" and har-mony principles, Wuliangye calculates how tomix unblended liquor in order to create a goodtaste and typical style that almost or alreadyreaches quality standards.
2. Baobaoqu block
Wuliangye has prepared Baobaoqu, a fermen-tation starter, with good quality wheat undermedium to high temperature. Baobaoqu isseen as a remarkable achievement in articialcultivation due to its bulge-shaped appear-ance.
5. Mud pit fermentation
Mud pits are used as the fermentation equip-ment. With the national treasure fermentationpit dated back to the start of the Ming Dynasty,the largest ancient fermentation pit group ofthe industry, Wuliangye continues live-statedistillation till today, enabling the benign itera-tive evolution of "cultivating pits with vinasseand cultivating vinasse with pits", which en-dows the strong old pit avor of Wuliangye thatis classic and elegant.
8. Level-based vinasse input
Wuliangye puts vinasse into different levels ofthe same fermentation pit in accordance withthe methods and structures of vinasse-basedingredient making, as well as operation control.
11. Level-based storage
Unblended liquor is separately stored in differ-ent zones in line with its grade determined, sothat it can mature in a natural way to make iteasier for later blending.
3. Circular fermentation
Vinasse is taken out of one pit and put into thepit next to it or the alternate pit for next fermen-tation after leveling, so that vinasse of differentnutritional compositions and structures canow and circulate between different pits, whichbalances and enhances the fermentation lev-els of all operating pits.
6. Level-based vinasse removalVinasse is removed from different levels,including top, upper, medium, lower and dou-ble-round bottom, based on their sensorialcharacteristics, so as to ensure that vinasseof different fermentation features will not behomogenized unexpectedly.
9. Quality-based liquor selection
Subtle color, aroma and flavor differencesof liquor in different parts inside the pit aredistinguished through observation, smelling,and tasting, and unblended liquor is selectedbased on quality and location. Liquor on thevery top and bottom will be discarded.
12. Careful blending
Wuliangye rst creates the blending techniqueof "blending liquors with liquors" and mixesand flavors different basic liquors from theaspects of vision, smell and taste, so as toensure and stabilize Wuliangye's style of "richand well-balanced avor".
Technique characteristics
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
At the beginning of the year, Wuliangye distributed the work objectives for food quality and safety, signed food quality and safetyresponsibility letters with relevant units, and required every employee to assume respective responsibilities, so as to ensure thethorough fulllment of respective duties.
In accordance with the Food Safety Self-inspection Policy, Wuliangye organized regular tour visits and inspections over all units toimplement the self-inspection duty of each unit. It formulated and strictly implemented quality control measures, and carried out blindsample assessments and standard sample assessments by the ve assaying categories, covering almost all assaying items fromraw materials to semi-nished goods and to nished goods.
Problems identied in quality supervision and inspections and results achieved were summarized and analyzed systematically, andsubmitted in the form of brief reports or special reports. For new products, packaging materials, packaging production process con-trol and after-sales product quality feedback, special quality analysis meetings were held to identify the causes of problems, nd outcrucial reasons, and propose preventive measures.
In 2021, 18,635 measuring instruments were inspected/calibrated and 3,258 certicates were issued. All measuring instrumentswere timely sent for inspection as entrusted by requesting units, and the 100% weekly inspection rate was maintained. Besides,measuring instruments were managed more strictly, and the warehousing of new measuring instruments was strictly controlled, with100% inspection rate of newly purchased measuring instruments.
Quality ControlWuliangye always implements the quality concept that quality is life and every drop of liquor must be made out of dedication and follows the quality-rst principle thatallows only the best grains to be used, upholds century-old craftsmanship and pursues optimal liquor production. In 2021, Wuliangye achieved the work objectives of100% ex-factory pass rate of products, 100% product qualication rate in national, provincial, municipal and third-party supervisory sampling inspections, and 0 foodsafety accidents.
Quality management system
Quality control procedures
Strengthening mechanisms and upgrading the management system
Strict food safety control
Wuliangye strictly abode by the Food Safety Law, Product Quality Law and other national and local laws and regulations related to food quality and safety, estab-lished the whole-process management policies covering food quality and safety, including the Regulations on Food Quality and Safety Management, Regulations onFinished Liquor Quality Management and Regulations on Packaging Material Quality Management, and a good quality management system including 34 proceduraldocuments, 20 prerequisite programs and the HACCP plan.
Wuliangye added indicators for plasticizers, bisphenol A, solids, heavy metals and food safety stricter than international limits to the testing process of raw and auxil-iary materials, unblended liquor, outgoing liquor, packaging materials, semi-nished goods and nished goods to ensure product quality with process quality. Besides,Wuliangye strictly controlled the food quality and safety of outgoing liquor, ensured that outgoing products of the same batch not only meet domestic standards butalso meet the standards of any country or region it exported the products to, so that it realized the same lines, same standards and same quality of products in do-mestic and foreign markets.
Strengthening the quality and safety super-
vision of production waterQuality safety supervision
Strengthening the quality supervision andmanagement of raw and auxiliary materials
Quality control
Strengthening the preventive managementof the production process of productsprocess management· Tested and analyzed each batch of liquor;Tested the hygienic indicators of packagingmaterials in direct contact with liquor;· Carried out special inspections of the packageproduction line;· Inspected the quality of incoming nishedliquor.
· Built the 1 million-mu base especially forgrains, established the product whole-life-cyclequality system from seed to liquor, realizing100% pre-inspection, traceability and controlla-bility of unprocessed grains.· Carried out occasional sampling assessmentsand xed on-site supervisory inspections overmajor workshops of raw and auxiliary materialsacceptance to intensify sampling inspections ofheavy metals and storage quality of grains.
· Conducted random sampling inspections overthe acceptance and storage management ofwater-involving products, implementation ofroutine water quality monitoring of workshopand food safety prevention to identify problemsin time and urge remediation;· Extracted outgoing water, water at the endof the pipe network and slurry water andentrusted an external party to inspect them. Allinspection results met the standards.
Establishing the Technical Committee on Standardization to standardize quality control standardsCase
In January 2021, Wuliangye established the Technical Committee on Standardization and its Ofce. In the committee, the Secretary of Party Committee actedas the Director, Chairman as the Deputy Director, Deputy General Manager as the Secretary-General, and heads of the design department, production depart-ment, quality department, technical research department and testing department as the members. The Ofce of the Technical Committee on Standardizationwas managed by the Quality Management Department, with the Deputy General Manager as the Director, the head of the Quality Management Department asthe Deputy Director, and personnel engaging in quality, production, design, testing and technical research as the members. Moreover, Wuliangye formulatedthe Regulations on Formulation and Revision of Technical Standards to standardize its work procedures for formulation and revision of technical standards, soas to ensure the applicability and operability of its quality control standards.
In 2021, Wuliangye obtained quality and food HACCP management system certicate and manufacturer's certicate from the ChinaQuality Mark Certication Group Sichuan Co., Ltd., and also passed the measurement management system annual inspection conductedby China Certicate Center for Metrology and Measurement.
Implementingmanagementobjectives
Internal quality
control
Problemsummary andimprovement
Managementof measuringinstruments
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
Special meetings on quality analysisQuality-related training
Product packaging quality competition
Studying risk assessment methods and rening the safety risk control mechanismCaseIn order to guarantee food safety, Wuliangye carried out the Research and Application of Methods on Evaluating Exogenous Food Safety Risks in Liquor Pro-duction, in which it fully assessed the possible risk factors in production and transportation of raw and auxiliary distillation materials and sales of nished liquorduring the shelf life, and put forward corresponding solutions, forming a systematic risk assessment plan for the production of Baijiu. It also formulated the cor-responding food safety standards to ll the gap in the eld of risk control in distillation in the Baijiu industry. In 2020, Wuliangye was awarded the second prizefor scientic and technological integration of the Chinese light industry.Based on the results of the study, Wuliangye developed and rened a set of risk assessment and identication methods, formulated the food safety risk as-sessment procedure, carried out a general and comprehensive inspection over the potential safety hazards in liquor-related production of raw and auxiliarydistillation materials and stainless steel products, plastic products and ceramic pots (ceramics) in contact with liquor during production (e.g., migrations, pes-ticide residues, mycotoxins and antibiotics), and took the lead in establishing the product whole-life-cycle quality system from seed to liquor, realizing 100%pre-inspection, traceability and controllability of all production processes and fully guaranteeing the food safety of products.
Implementing the standardized quality management model for packaging materials in contact with liquor to ensure the
safety of packaging materialsCaseIn 2021, on the basis of the results of the Control on Baijiu Liquor Exposed to Hazardous Substances of Process Material project, Wuliangye, starting withpackaging materials in contact with liquor and by establishing a strict quality control system for materials in contact with liquor and formulating quality testingmethods and standards for glass, ceramic and plastic packaging materials in contact with liquor, systematically implemented the standardized quality manage-ment model for packaging materials in contact with liquor, thus strictly preventing Baijiu products from quality problems due to the introduction of hazardoussubstances, such as exogenous heavy metals, phthalate esters and bisphenols, effectively guaranteeing the product quality of all packaging materials incontact with liquor during Baijiu production and ensuring no product quality problems in municipal, provincial and national sampling inspections of Wuliangye'sBaijiu products.
Improving the awareness and capabilities of quality control by carrying out the quality month activityCase
In September 2021, Wuliangye carried out the quality month activity themed on "taking in-depth quality improvement actions to vigorously promote building apowerful country with quality". In the activity, Wuliangye participated in the overall arrangement of the provincial and municipal quality month activities, and sentexperts to liquor enterprises in Chengdu to offer special training on improvement.All departments, based on their actual situation, promoted and organized activities related to the quality month to convey quality management knowledge andquality laws, regulations and standards to employees, guide employees to improve quality awareness through WeChat, SMS, QQ, internal network system,blackboard posters, meetings, LED screens and other media. Through position skill competitions, position drills and knowledge contests, employees' qualityawareness, quality skills and operational skills were generally improved, and a good atmosphere of full participation and highlighting quality was created.
In 2021,100% ex-factory pass rate of products.100% product qualication rate in national, provincial, municipal and third-party supervisory sampling inspections.
0 food safety accidents.Won the "National Quality Award" issued by the China Association for Quality.
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
The infrastructure project to guarantee quality improvement
Intelligent agriculture display platform of Wuliangye's grain base
Sample liquor storage
Traceable distillation to guard distillation quality with big data
Managing sample liquor scientically and rening the product traceability system
Case
Case
In 2021, the grain base of Wuliangye in Yibin covered a total area of over 510,000 mu. For 100% pre-inspection, traceability and controllability of unprocessedgrains, Wuliangye built the distillation grain base traceability management system from ve perspectives of remote sensing analysis, precision meteorology,standard planting, eld management and plot management, and added "e-identity" quality control labels to the grains produced in the base, so as to track, reg-ularly or from time to time, the whole process from seed selection and cultivation and scientic planting to eld management and collection and transportation,which effectively prevented unqualied planting and grains of poor quality from entering the distillation process.
In order to respond to the state's call for building the national Baijiu quality and safety traceability system, Wuliangye exerted efforts in management standardformulation, information-based system building and hardware facility improvement, and built the product traceability system centering on the management ofsample liquor. Wuliangye realized scientic sample liquor management by giving each bottle of sample liquor a unique sample information code and locationcode, rapidly connecting such location code and information code with a PDA and timely uploading them to the information management system. Since the1980s, Wuliangye has extracted and retained nearly 200,000 bottles of liquor samples that serve its product authentication, quality management, product de-velopment, after-sales handling, information traceability, standard formulation and quality improvement.· 14 new half-open liquor storehouses will be built;· After completion, the blending and storage capacity of unblended liquor will be increased by 360,000 tons, which will benet theexpansion of the storage capacity of base liquor, quality guaranteeing of liquor to be packaged, stabilization of high-quality baseliquor and supply of liquor to be packaged and will make available intelligent base liquor storage, blending and transport.Base liquor stor-age capacityIncrease
· The production capacity of solid unblended liquor will be increased by 100,000 tons to further meet the market demand for high-end high-quality Baijiu;· Five new liquor production workshops will be built in one of the project stages, which, after completion, will produce about 20,000tons of high-quality unblended liquor per year, thus facilitating the continuous improvement of production capacity of high-qualityunblended liquor and enhancement of Wuliangye's core competitiveness.Distillation baseExpansion
· A new silo, milling workshop, work tower and ancillary facilities will be built in the project;· After completion, the project can realize the storage capacity of 48,000 tons of unprocessed grains and the production capacity of600,000 tons of milled powder, which will benet the stable supply of high-quality unprocessed grains, make intelligent grain stor-age and milling available, optimize the production environment and improve the production efciency.Automatic storageand milling of un-processed grains
· A new intelligent packaging workshop, intelligent 3D warehouse, storehouse for liquor to be packaged and storehouse for packag-ing materials will be built;· The project has two stages. After completion, the annual packaging capacity will be about 210,000 tons, the annual nished liquor
storage capacity will be 36,000 tons and the daily shipment capacity will be 1,500 tons, which will facilitate the quality guaranteeingand supply stability of nished liquor, as well as improvement of production efciency, and will make nished liquor packaging andstorage automated and intelligent.Packaging andstorage intelligentdistribution
Intelligent upgrading to ensure quality improvementIn 2021, Wuliangye gave full play to its strengths as a leading enterprise and promoted the construction of the intelligent packaging workshop and the liquor blendingand storage warehouse, guaranteeing both capacity and quality improvement.
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TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
Culture PromotionAs a unique cultural symbol and spiritual totem of China, Baijiu plays the role of a messenger of cultural communication between the East and the West. By guardingcultural heritage and carrying forward the Baijiu culture, Wuliangye undertakes the responsibility for exporting excellent traditional Chinese culture and Baijiu culture tothe world.Cultural cultivation to enrich the brand connotation
Carry forward the liquor history and guard the cultural heritageIn 2021, Wuliangye carried forward and guarded the cultural heritage. Internally, it accelerated the revision of the Wuliangye Ancient Fermentation Pit Site's ProtectionPlan, and applied for the inclusion in the 2022 List of Major Historical and Cultural Sites Protected at the National Level. Externally, it signed the Consensus on JointlyApplying for the Inclusion of Chinese Baijiu in the World Heritage List.
Wuliangye actively practices the culture-based development strategy, continuously renes its corporate culture system, continuously promotes the development ofbrand culture from three aspects of cultural inheritance, cultural communication and cultural protection, and supports the creative transformation and innovative devel-opment of excellent Chinese liquor culture.
Hold the special expert lecture on Wuliangye culture to deeply tap into the brand cultureCase
On 27 September 2021, Professor Li Houqiang, a well-known economist and academic leader, was invited to hold a special lecture on Wuliangye culture. Hesystematically expounded on the academic foundation and rich connotation of Wuliangye culture, explained in detail the core essence and value of times ofWuliangye culture, and discussed with representatives attending the lecture the epochal character, guiding signicance in practice and innovative communica-tion of Wuliangye culture.
The special lecture on Wuliangye cultureProf. Li Houqiang delivered a keynote speech
Corporate culture system
Corporate
culturesystem
Promote our historic legacy, co-create a life of enjoy-ment
Corporate MissionStay true to original aspirations, remain realistic andpragmatic, keep making progress and innovation
Corporate Spirits
In pursuit of long-lasting business, Wuliangye is committed to developing into a green, innova-tive, world-leading enterprise that keeps developing in a high-quality, sustainable, and rapid way
Corporate vision
Stay honest and quality-oriented and advocate crafts-manship and inheritance-inspired creation
Core ValuesCreate happiness for employees, create outstandingexperiences for customers and create returns forinvestors
Core Value Ideas
· Efciently promote cultural relics protection· Coordinate all parties to apply for theinclusion of Baijiu in the world heritage list· Enhance the echelon building of intangibleheritage inheritors
· Deeply tap into the brand culture· Strengthen the construction of the culturalfront· Organize the publication of Wuliangye'sbrand culture books
· Implement the "Exploring Wuliangye'sHistoric Values" project· Continuously promote the studies onculture· Streamline and establish the culturalsystem
Three major directions for corporate culture development in 2021
Cultural studiesCultural communicationCultural protection
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TECHNIQUE · PREMIUM PRODUCTSTHROUGH ANCIENT AND MODERN EFFORTS
WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
In 2021, Wuliangye releases the results of the "Exploring Wuliangye's Historic Values" project. It laid a solid foundation for Wuliangye's future protection of major cul-tural relics and promotion of traditional culture.
Wuliangye actively advanced the joint application of Chinese Baijiu for inclusion in the world heritage list. In 2021, it signed the Cooperation Framework Agreement onJointly Application for the Inclusion of Chinese Baijiu in the World Heritage List Raised by Time-honored Chinese Baijiu Workshops, contributing to the promotion ofBaijiu culture around the world.
In order to strengthen the protection of Wuliangye's ancient fermentation pit site and other precious cultural relics, Wuliangye revised the Wuliangye Ancient Fermen-tation Pit Site's Protection Plan in 2021, assessed the safety of Changfasheng and Lichuanyong ancient pits and auxiliary buildings, and wrote the safety assessmentand identication report.
Wuliangye participated in the preparatory meeting forthe application for the inclusion of Baijiu in the worldheritage list, reached ve consensuses, and signed theConsensus on Jointly Applying for the Inclusion of Chi-nese Baijiu in the World Heritage List.
The Industrial Culture Development Center of MIIT leda visit to Wuliangye to study the joint application, andreached a consensus on the background significance,policy support, strategies and work arrangements for thenext step of the application.
Implementing the "Exploring Wuliangye's Historic Values" project
Advancing the application of Baijiu for inclusion in the world heritage list
Protecting the cultural heritage
Results of the "Exploring Wuliangye's Historic Values" project
Progress in applying for the inclusion of Baijiu in the world heritage list
Press conference to release the results of the "Exploring Wuliangye's Historic Values" project
Consensus on Jointly Applying for the Inclusion of Chinese Baijiu in the World Heritage List
Safety Assessment and Identication Report on Changfasheng Ancient
Fermentation Pit and Auxiliary Buildings
Safety Assessment and Identication Report on Lichuanyong Ancient Fermen-
tation Pit and Auxiliary Buildings
JuneOctober
· Wuliangye dated back the distillation technology based on crypt-type fermentation pits its upper history limit to the Yuan Dynasty;· Wuliangye provided evidence for the historical age of Yibin's multi-grain Daqu distillation technology characterized by crypt-type fermenta-
tion pits and Wuliangye's ancient pit groups dating back to the Yuan Dynasty, providing clues for tracing the history of Baijiu making in Yibinand even in South China.
· Enrich the physical materials of the development history of Yibin City since the Han Dynasty;· Wuliangye discovered the city wall of the Ming Dynasty, storefront buildings of the Qing Dynasty, large municipal drainage facilitiesof the Ming and Qing dynasties and other relics, which is conducive to enriching and improving the development history of Yibin City.
· Trace back the production and living time of the urban area of Yibin City back to the early and middle Shang Dynasty;· Find a cultural accumulation layer about 3,500 years ago in Zhangwanhe Workshop Area of Wuliangye through the investigation and analy-
sis of the soil samples of the cultural layer.
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
O?ine ex-changes
Improvingonline commu-nication
Establishingthe communi-
cation plat-form
Ensuringsmooth com-
munication
Promoting Baijiu culture all around the worldChinese Baijiu culture is an important part of excellent traditional Chinese culture. By virtue of China's "Belt and Road Initiative" and the "Going Global Together" strat-egy of the provincial Party Committee and government of Sichuan for Sichuan dishes and Sichuan liquor, Wuliangye seized the opportunity and actively built strategicalliances with well-known overseas enterprises to promote Chinese Baijiu culture around the world.
· Overseas exhibitions: Wuliangye held tasting events in the UK, Russia, Georgia, Japan and other countries, and invited local political
and business celebrities to taste its liquor together.· Exchanges with representatives in China: In 2021, the Consul General of Germany and the Consul General of The Republic ofKorea in Chengdu visited and had exchanges with Wuliangye, and Wuliangye participated in the event to celebrate the 26th anniver-sary of the establishment of the sister-province relation between Sichuan Province and Brussels-Capital Region, as well as the 2021National Day Reception of the People's Government of Sichuan Province.· Foreign-related activities: Wuliangye participated in the China session of the 2021 "International Tea Day" event.
· In May 2021, Wuliangye opened the "Wuliangye International" ofcial WeChat account to promote Wuliangye's brand culture and ac-
tivities and exhibitions to dealers and fans at home and abroad, and has published a number of articles on Wuliangye's history and
culture till now.· In September 2021, Wuliangye completed its overseas social media matrix (covering three major international social media plat-
forms as Facebook, Twitter and Instagram) and put it into operation.
· Establishing Wuliangye restaurants: Wuliangye opened Tokyo Wuliangye Restaurant and Hong Kong Wuliangye Restaurant, and is
orderly advancing the preparation works for South Korea Wuliangye Restaurant, Milan Tasting Center in Italy and Dusseldorf Tasting
Center in Germany, which will form the platform to promote Wuliangye and Chinese Baijiu culture.· Enhancing international cooperation in marketing: Wuliangye reached a strategic cooperation with Pernod Ricard, and marketed
products together in Thailand, Singapore and Malaysia.
· As at the end of 2021, Wuliangye has obtained registration protection in 88 countries and regions including the United States, the
European Union and South Korea, and has 469 international registered trademarks.· It has also established a multi-dimensional monitoring, defending and protection system to actively and dynamically monitor the
trademark registration of its core brand "Wuliangye" at home and abroad and accurately identify infringement, so that it can take the
initiative to protect its rights in accordance with the law.
The overseas cultural communication system
Performing the world's excellence in Boao Forum
CaseIn April 2021, Wuliangye, as an honorary strategic partner and working with Boao Forum for Asia, presented itself at the welcome dinner for forum membersand partners and the diplomatic envoy dinner, and participated in important events such as the opening ceremony of the annual conference of the forum andparallel sessions. It gave full play to its responsibility and role as a strategic partner, promoted mutual respect and mutual learning between Chinese andforeign cultures, and supported forum participants to gather Boao views and form Boao solutions, making contributions to boosting global economic recovery,improving global governance and advancing global cooperations and illustrating the new pattern of Chinese Baijiu brands and enterprises going global.
Opening ceremony of the 2021 annual conference of Boao Forum for AsiaWelcome dinner for diplomatic envoys
The 25th Liquor Sage Ceremony
Holding the 25th Liquor Sage Ceremony to honor excellent traditional Chinese culture
CaseIn December 2021, Wuliangye held its 25th Liquor Sage Ceremony in MountJiusheng, which was themed on "inheriting the liquor history and culture andunfolding the new chapter of harmony". The ceremony worshiped the heavenand earth and the Liquor Sage, and included a liquor initiation part and groupworship part. Through gun salute, music and dance worship, incense burningwith clean hands, offering the holy ve grain articles, three tributes and othersolemn ceremonies, Wuliangye expressed its reverence for craftsmanshipand pursuit of the ultimate craftsmanship inherited from generation to gen-eration and showed its inheritance and integration of Chinese liquor cultureand Wuliangye culture.
Present the charm of Chinese Baijiu at the World ExpoCaseDubai World Expo 2020 (hereinafter referred to as the "World Expo") kicked off on 1 October 2021, and the "Light of China" China Hall was ofcially opened onthe same day. As an ofcial partner and designated liquor of China Hall at the World Expo, Wuliangye made a wonderful appearance together with China Hall,deepening cooperation with the World Expo and contributing the strong-avor harmonious power of China to the harmonious development of the world withBaijiu as the medium.
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ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU-RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATION
EnvironmentPreservation of Rivers in TheirNatural State through Ancient andModern Cultivation
Wuliangye is a ne Chinese Baijiu liquor that is derived from the earth. Blessed by na-ture, Wuliangye has always cherished its green aspirations and is the rst to proposethe idea of building a "Zero-carbon Liquor Enterprise". It creates environmentally friendlyecological wetlands, and builds spatial patterns and production methods that are re-source-efcient and environment-friendly, in an effort to pursue a green, environmentallyfriendly, low-carbon and sustainable development path and bring good liquor back togood mountains, good water and good rivers, thereby establishing itself as a devotedliquor enterprise with a balance of ve elements and a return of ve senses to truth.
-Environmental Management-Zero-carbon Liquor Enterprise-Ecological Conservation-Green Logistics
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ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU-RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATION
Environmental management system was certied by China Quality Certication Center
Environmental ManagementZero-carbon Liquor EnterpriseThe Company places great emphasis on environmental protection management, and under the guidance of green development, builds an energy, environment andgreenhouse gas management system that operates efciently. It also continues to improve its management system and actively carries out training, emergency drills,daily inspections and other environmental protection practices with a view to achieving the harmonious development of corporate value and ecological value.
Adhering to the national target of "carbon emission peak and carbon neutrality", the Company is the rst to put forward the vision of "Zero-carbon Liquor Enterprise". Ittakes active steps to explore low-carbon solutions, and fully promotes green and low-carbon energy, aiming to be the pioneer of "carbon neutrality" culture in China'sbrewing industry.
Three stages of creating a "Zero-carbon Liquor Enterprise"
Work mechanism for carbon emission control
Establishing a safeguard mechanism to explore smart zero carbon
To advance the work of zero carbon in an orderly manner, the Company has established a carbon emission management mechanism consisting of "quantitativemonitoring - qualitative plan - regular disclosure" to create a comprehensive and intelligent carbon emission management system. In the formulation of the standard,the Company actively solicited the opinions of stakeholders and experts, and put in place an incentive system to encourage employees to jointly explore the plan ofbuilding a "Zero-carbon Liquor Enterprise".
A total of 16 environmental training sessions were organized in 2021, reaching more than 30,000 people.It is the rst company in the industry honored as the "Green Design Demonstration Enterprise for Industrial Products"by the Ministry of Industry and Information Technology of China.It has been awarded the title of "Environmental Integrity Enterprise” in Sichuan Province for ve straight years.It was granted the Enterprise of Outstanding Contribution to Environmental Protection in 2021.
Coordinating di?erent levels of the Company to solidify the cornerstone of ecological conservationCaseTo advance environmental management in an orderly manner, the Company held seven meetings of the Environmental Management Committee and 17 spe-cial meetings on environmental protection during the Reporting Period. Additionally, the leaders led more than 90 on-site work sessions and dedicated them-selves to creating a more complete environmental management system throughout the Company.·Top-level design:
With the "low-carbon circular, ecological benchmark" policy as the guideline, the Company set up a leadership group headed by the Sec-retary of Party Committee and Chairman of the Board, and formulated the Ecological and Environmental Protection Work Plan and other policy documents toprovide guidance for the orderly implementation of environmental protection work.- Grassroots promotion:
A total of 17 key remediation tasks were identied, and 14 people from grassroots units were assigned to engage in environmental
monitoring and on-site supervision to ensure the implementation of the remediation work. To date, the remediation tasks have been fully completed.- Philosophy publicity and implementation:
To further transmit the concept of ecological civilization, the Company produced ve large outdoor environ-mental protection posters, compiled and made more than 30 theme display boards, and repeatedly played environmental protection information and ecologicalcivilization slogans on electronic display screens to urge all employees to keep in mind the importance of ecological conservation.
Quantitativemonitoring
Qualitativesolutions
PeriodicdisclosureInternal monitoring:
-Verify annual greenhouse gas emissions.External monitoring:
- Verify the Company's greenhouse gas emis-sions by third-party verication agencies.- Monitor energy consumption of key energy-us-ing units online.
- Carry out corporate carbon neutral planning.- Formulate greenhouse gas management sys-tem and emission reduction program based onthe status quo and planning of the industrialpark.- Develop a water, electricity and heat supplysystem plan that incorporates cost, energyconsumption and emission reduction targets.
- Disclose environmental information in periodicreports such as semi-annual reports, annualreports, and social responsibility reports.- Periodically disclose environmental informationpursuant to the Regulations on Administrationof Pollutant Discharge Permits, and the Admin-istrative Measures for the Legal Disclosure ofEnterprise Environmental Information.
Stage 2The Company aims to create a "zero carbon supply chain" and promotegreen supply chain management.
Stage 1
The Company aims to become a "zero carbon factory", by managingcarbon emissions from production and participating in market transac-tions to achieve its own carbon emissions neutrality.
Stage 3
The Company is involved in the formulation of a carbon neutrality stan-dard system for the brewing industry.
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ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU-RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATION
Greenhouse gas verication statement
Energy Management System Certication
Putting our heads together to contribute to low-carbon developmentCaseTo boost the motivation of all employees in putting forward reasonable suggestions to the Company, the Company has implemented the Implementation Ruleson Awarding Minor Innovations and Progresses, and encouraged employees to propose new ideas on existing production equipment, production techniques,management methods with respect to improving the level of resource utilization and reducing pollution emissions through the activity of "Golden Ideas" forenergy conservation and emission reduction, with a view to providing new approaches to the Company's target of zero carbon. Four award levels and amountswere established for the Achievement Award to motivate employees to provide input and contribute to the creation of a green future.
Embracing a green future powered by energyThe Company constantly improves the energy management system, actively develops a new energy structure, and properly performs energy consumption data moni-toring and disclosure to achieve omni-port control and omni-channel management.
Energy & environmental protection strategy
Fully implement digitalization and create a digital application scenario of"integrated intelligent energy + carbon neutrality + blockchain".
Fully launch green energy supply,covering distillers grains biomasscogeneration and biogas powergeneration, with the aim of achievingrenewable energy for electricity andheat.
Fully push forward the electric energysubstitution and energy efciency im-provement projects, and ensure thecomprehensive energy consumptionindicators reach the industry leadinglevel.
EnergySupply side
EnergyConsumerside
EnergyManage-ment side
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ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU-RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATION
Digital technology is further integrated with business scenarios to create a "Zero-carbon Liquor Enterprise" with greenand low-carbon e?orts
Biogas power generation is implemented to turn waste into treasure
Case
Case
The Company has promoted the integration of technologies such as applied 5G, articial intelligence and edge computing with business scenarios through stra-tegic cooperation with third parties, and continued to build Wuliangye smart stores. Wuliangye Smart Store Project (Phase I) has already been up and runningand continued to be updated to improve user experience. Phase II will focus on data governance and business control capability improvement, deeply integratebusiness ows of data and marketing system, so as to upgrade procedures with data, enhance efciency with procedures, promote innovation with procedures,thus enabling business to be visualized. Meanwhile, focusing on the target of "carbon emission peak and carbon neutrality", the Company will build a platformfor monitoring intelligent energy and environmental protection to achieve comprehensive testing and analysis of the Company's energy and environmental pro-tection data, thereby continuously promoting green and low-carbon governance and sustainable development.
To better tackle biogas, the Company converted the pollutant biogas generated by anaerobic fermentation at each wastewater station into electricity throughgas-red generator sets, and comprehensively utilized biogas from Wuliangye wastewater treatment stations to generate approximately 8.2 million kWh ofelectricity in 2021, resulting in a reduction of CO2 emissions by approximately 4,300 tons. The biogas power generation project has achieved the comprehen-sive utilization of combustible organic pollutants and promoted the use of clean energy while treating wastewater, which contributes to the Company's energystructure transformation.
Ecological ConservationBaijiu making has a natural dependence on the regional resources and natural ecological environment of the region, and is subject to extremely strict requirements. Inthe view of Wuliangye people, "protecting the ecology at all costs and with all efforts" is the foundation for the Company to achieve one glory after another, and is alsothe premise for the sustainable development of the Company. During the Reporting Period, the Company strictly complied with the emission regulations, ensured thecompliant disposal of all types of waste, improved the recycling rate of waste, conserved resources, protected water and soil, and worked hard to build a home withblue sky, lush land and lucid water.
Pollutant governanceWaste-waterEx-haustgasSolidwasteHaz-ardouswaste
Through resource utilization of solid waste, distiller's grains can be used to realize circular economyCase
During the brewing process, a large amount of distiller's grains are generated,and the Company uses them as raw material to brew reformulated liquor,thus realizing the full utilization of residual sugar and precipitation in distiller'sgrains. By producing approximately 8,000 tons of reformulated liquor per year,the Company effectively achieves the resource utilization of distiller's grainsas a solid waste of production, representing an integral part of Wuliangye'scircular economy.
- The wastewater is treated and puried at multiple levels through treatment stations, deep treatment areas, and ecological wetlands, and the nal pollutant indicator ofthe discharged water conforms to the Water Pollutant Discharge Standard for Minjiang and Tuojiang River Basins in Sichuan Province.- Ultra-low emissions of boiler exhaust gas is achieved by switching from coal to gas, burning clean energy such as natural gas, while adopting low nitrogen combustors.- The odor and biogas produced in the process of wastewater treatment are collected in a classied manner for adsorption and purication and comprehensive utilization.- Bare soil coverage at construction sites, and wet work during soil breaking, are implemented to effectively prevent and control dust generated during the project con-struction.- The general solid waste generated by the Company is mainly distillers grains, wastewater sludge and waste packaging materials. Specically, distillers grains are re-cycled for the production of reformulated liquor and fodder. Wastewater sludge is disposed of by incineration, and waste packaging materials are recycled by qualiedthird parties.- The Company has implemented standardized management of hazardous waste and appointed legally qualied third-party professional companies to carry out compe-tent disposal.
Distiller's grains recycling
Online monitoring of energy consumption is introduced to facilitate government energy planning
Case
In response to government calls, the Company has strengthened daily energy monitoring and management, and conducted energy audits, energy efciencybenchmarking and energy measurement reviews. Additionally, it has completed the access terminal building of the online energy consumption monitoring sys-tem during the Reporting Period, which transmitted energy and environmental protection data from the enterprise-end equipment to the higher-level system,thus facilitating the government to conduct energy macro analysis and strategic planning work, and also providing data support for enterprises to further ex-plore the scope of potential energy saving.
ZeroEnvironmental pollution incidents of mi-nor and above
100 %Total pollutant emission compliance rate100 %Exhaust emission compliance rate
100 %Wastewater discharge compliance rate
100 %Noise emission compliance rate
During the Reporting Period,
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ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU-RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGH
ANCIENT AND MODERN CULTIVATION
Green LogisticsAnji Logistic Group, a subsidiary of Wuliangye, has been providing holistic logistics solutions for Wuliangye for many years. In the course of business development,it has introduced advanced logistics technologies, planned logistics activities wisely, promoted the green development of logistics management, product packaging,storage and transportation, thereby minimizing the impact of logistics on the environment.
- Formulate environmental protection managementsystem and assessment methods, and promulgatepolicies and regulations on environmental safety,environmental health and resource conservation.- Order management is done on the system, makingit paperless through digitalization.
- Achieve full coverage of LED energy-saving lightingin the warehouse which further reduces energyconsumption.- Automated scanning and weighing equipment is set up in thewarehouse. With data exchange with Anji Logistic Group's WMSsystem, the data connection between warehouse logistics oper-ations and downstream logistics carriers is achieved, resulting insavings in transportation costs and fast and accurate shipments.
- Implement packaging reduction and no excessivepackaging.- Give packaging waste a second life, by puttingused paper and cardboard into the recycling area,followed by recycling and reuse by professionalmanufacturers.
- Committed to changing the mode of energy depen-dence for logistics and transportation vehicles. Asof now, the new energy vehicles have accountedfor more than 10% of the total vehicles.- It is projected that by the end of the 14th Five-YearPlan, new energy vehicles will account for morethan 70% of the service vehicles in the WuliangyeIndustrial Park.
Green logistics system
Greenmanagement
Greenwarehousing
Greenpackaging
Green trans-portation
During the Reporting Period,Anji Logistic Group was awarded the Level 1 Green Warehouse Certication by the China Association of Warehousing andDistribution.
Twenty-one environmental training sessions were conducted for full-time drivers, with a total of 1,274 partici-pants.The coverage reached 100%.Songgong River Wetland
Songgong River dredging project protects the lucid water of Changjiang RiverCase
In response to the remediation action of the Changjiang River outfall traceability, the Company invested approximately RMB2.35 million to dredge and desilt the4,500-meter-long Wuliangye section of the Songgong River. It also implemented the renovation of the underground river channel, re-found the slope, hardenedconstruction, to resolve the problem of river siltation and suspended sediment deposition. The project construction was completed during the Reporting Period.It will be combined with a long-term river maintenance mechanism to ensure smooth river ow, enhance the ooding and drainage capacity of the river, andfurther enhance the ecological environment of the Songgong River Basin.
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATION
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SocietyExtensive Brotherhood throughAncient and Modern Cultivation
Originating in Yibin with a history of more than 4,000 years of Baijiu, Wuliangye cul-ture, as an important bearer of Baijiu civilization, is constantly exploring the balancebetween its development and sustainable economic and social progress. While offer-ing consumers great Baijiu, Wuliangye advocates the concept of healthy and rationaldrinking, develops sustainably with the power of responsibility, and contributes to theeconomic development, social progress and the good life of the people to the best ofour ability, bringing "harmony" to life and spreading warmth to all families.
· Supplier Management· Dealer Support· Consumer Service· Employee Recruitment and Development· Investor Relations Management· Industrial Progress· Rural Revitalization· Charities
7576
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Supplier ManagementGuided by the idea of "extensive consultation, joint contribution and shared benets", the Company strictly manages its suppliers to ensure product quality accordingto its business development needs, and empowers our suppliers to achieve win-win cooperation.
Optimization of supplier management
Supplier empowerment practices
Transparent procurement initiatives
Strict management to ensure the product quality
Empowering and fueling industry development
During the Reporting Period, the Company optimized our management system in improving grain quality and strengthening risk response, and insisted on transparentprocurement to protect the legitimate rights and interests of suppliers.
The Company is committed to working with suppliers to enhance product quality while empowering the upstream and downstream industry to build a win-win industrialchain and promote industrial development and upgrading.
Organizing occasional integrity talks and work sessionsOrganizing visits to integrity bases for party membersand cadresSigning an integrity commitment with suppliersExternalInternal
During the Reporting Period,Supplier contract performance rate was 100%.Occurrence of 0 quality and food safety incidents due to purchased packaging.
Enhancing risk responseIn response to the status quo of zeroinventory base, we strengthened the controlof Yibin's local storage resources andenhanced the construction of the supplychain's anti-risk capability.
Optimizing the assessment system
We reduced the weight of nancial assess-ment, strengthened the guiding attributesof the assessment work and the applicationof results, rewarded partners with excellentassessment results, and punished supplierswith poor assessment results accordingly.
Reinforcing targeted management
We made independent managementsystems for major areas, including storagemanagement, quality management, grainquality, food safety assurance and graintraceability management for more renedand targeted management.
We organized suppliers to study the Com-pany's food hygiene and safety system, andqualied suppliers of piecemeal materials inthe warehouse to study the newly revisedManagement Measures for Suppliers ofPiecemeal Materials.
We conducted training on SRM system op-eration and safety management for qualiedsuppliers in the warehouse.
We organized supplier conferences, select-ed outstanding suppliers and strengthenedexchanges and learning among suppliers.
LearningPolicies
ConductingTraining
StrengtheningExchange
7778
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Distributor SupportThe Company upholds the cooperation philosophy of "extensive consultation, joint contribution and shared benets", prioritizes dealer training and assessment, insistson high-quality marketing results, continuously strengthens communication and training, establishes routine training in the area and occasional video conference train-ing system, solves dealers' problems and promote win-win development between the Company and dealers through the new product launch conference, key dealerexchange seminars, online training sessions, etc.
We claried the entry threshold, assessment mechanism, operation and management codes, negative action list, etc.
2021Dealer ManagementPolicy DocumentsUpdated Content
We make clear the investment principles, investment criteria, etc., optimized the dealer audit inspection mechanism to ensure100% passing rate of the audit.
We dened the award categories, award quotas, award criteria, etc., which is the basis and code for the implementation ofannual assessment and reward.
Updating dealer management policy documents
Management Rules for the General Distribution Brand Operator
Management Measures for Access to Dealers of Self-operated Brands
Annual Assessment and Reward Measures for Dealers
During the Reporting Period, more than 20 dealer training sessions were conducted, covering more than 300 dealers.
Win-win development stimulates and fuel high-quality marketingCaseIn order to strengthen the contractual awareness of dealers and better play the role of incentive mechanism, the Company issued the Annual Assessmentand Reward Measures for Dealers during the Reporting Period, using it as the basis and code for the implementation of annual assessment and reward fordealers. The Measures, dominated by the quantitative indicators which are supplemented by qualitative indicators, guide the Company to assess individually orcomprehensively the dealers' contract performance rate, year-on-year sales growth rate and market management ability, to set the "12-18 reward" and "year-end market support" according to the actual marketing work, and to downgrade or disqualify from reward dealers in breach of contract, thus guiding dealers toconstantly improve brand image, expand market channels, better cultivate and serve consumers.
Extensive consultation, joint contribution and shared benets on a new journeyCaseWith the theme of "New Era, New Journey, New Action", the 25th 12·18 Conference of Extensive Consultation, Joint Contribution and Shared Benets washeld in Yibin. Continuing to adopt a combined online and ofine method, the conference was held at main venue of the Wuliangye Yibin International Confer-ence Centre and 27 online branch venues simultaneously, with a total of approximately 2,500 participants, including leaders and guests at all levels, heads ofrelevant provincial and municipal authorities, brand operators, partners, investors and media representatives. The Company extensively exchanged and coop-erated with dealers, listened to their voices and strived to provide rst-class policies, rst-class services and rst-class environment for all dealers.
Zeng Congqin, Secretary of the Party Committee and Chairman of the Board of Directors of the Company, attended the 25th 12·18 Conference of Extensive
Consultation, Joint Contribution and Shared Benets
Building a regular communication mechanism to promote communication among dealersCase
During the Reporting Period, the Company established a regular interaction mechanism in the segment of other Baijiu series with core dealers, holding a num-ber of communication meetings with core dealers of the Wuliang Chun (Spring) brand, Wuliang Chun (Rich Flavor) brand, Jianzhuang brand and general distri-bution brand to convey the Company's strategies, listen to the voices of dealers, deepen communication and interaction, and solve problems for distributors ina practical manner.
Wuliang Chun (Spring) core dealers’ meetingWuliang Chun (Rich Flavor) core dealers’ meeting
7980
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTSEmpowering dealers to tell the Wuliangye story
Information technology supports sta? growth and knowledge empowerment is e?ective
Case
Case
In order to enhance the ability of the dealer team to tell the Wuliangye culture story well, the local dealer associations, together with the marketing zones, car-ried out Wuliangye culture knowledge learning sessions, organized dealers to systematically study the Wuliangye brand culture and product knowledge, andhelped dealers to improve their abilities in advertising, terminal construction, consumer cultivation etc., ensuring that everyone in the marketing team could tell,would tell and indeed tells the Wuliangye story well.
During the Reporting Period, the Company continued to integrate knowledge management, innovation management awareness and business scenarios, anddisseminated and shared knowledge in multiple forms. The Company internally provided online training services for nearly 1,100 employees in the marketingsystem and externally for more than 6,500 exclusive store staff, applying information technology to empower the organization and employees to improve theirknowledge and service quality.
· Covering the entire sales process data, the analysis has produced more than 300 reports of various types to guide business development.· Digital tools such as the "Marketing Decision Command Centre", "Self-service Analysis Platform" and "Sales Detail Enquiry" have been built to support pre-cise policy making.
· Dealers and offline business at all levels were integrated into onlinemanagement to digitally assign tasks, identify breaches and monitor theprocess.· An online decomposition mechanism for sales targets was establishedand the policy of "individual responsibility and follow-up by day" was im-plemented through digital tracking.
· The implementation standards, synergy mechanisms, key control pointsand indicators for each business and management process of the mar-keting system were dened.· The design of process standardization and re-processing for 21 market-ing zones, 9 business areas and more than 240 key control points wascompleted.Wuliangye culture knowledge learning session
Consumer Services
Adhering to the consumer service concept of "attracting consumers with culture and impressing customers with service", the Company protects consumer rights andinterests and improves the whole process of service, creating a "warm Baijiu enterprise" for consumers.
Digital empowerment to enhance consumer experience
During the Reporting Period, the Company carried out and completed the second phase of its digital marketing transformation project with "digital re-processing" asthe starting point, integrated data into processes and organizations, established a model of direct sales channels, and tapped into market increment, achieving thethree core value objectives of high-quality growth, new mode of sales and efcient operations, injecting the power of big data into consumer services through digitalbusiness capability enhancement and uses technology, and creating a more convenient and better consumer experience for consumers.
The Company innovates in service management approaches and leverages the power of digital technology to transform marketing business into visual node data anddata analysis results into marketing strategies, which helps the marketing team to make precise decisions, boost market response speed and provide services in amore targeted manner.
Since its digital transformation, the Company has been actively building a smart retail system, employing data governance to improve operating capability of exclusivestores, building smart stores with smart devices and using the power of technology to create a quality consumer environment. At present, the Company has carriedout smart retailing pilot in 20 exclusive stores in three zones, namely Sichuan, Jiangsu and Henan.
Leveraging digital achievements
Building Smart Retail
Digital achievements
Business
Digitization
ProceduresStandard-ization
DigitalBusiness
During the Reporting Period, 16 online learning courses were developed with 501
participants and a total of7,487hours of learning time, with a per capita learning time of 14
hours.Examinations were conductednine
times, with over6,000 participants, covering the entire Wuliangye marketing system.
8182
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Store Smart Retail System
Responsible marketing tools
Based on "new thinking, new users, new scenarios, new products and new models", the Company is building a multi-dimensional consumer cultivation system withmore accurate digital construction, building Wuliangye's core consumer base, deepening the construction of vertical ecological empowerment platforms and broaden-ing consumer touch points; the Company is also launching the "Wuliangye New Retail" WeChat video account to further improve the interaction chain with consumersand enhance the effectiveness of brand marketing, upgrading and optimizing the "Consumer Club" to enrich consumer rights and benets and improve consumervalue perception, introducing automatic message response robots, and upgrading consumer-related order management, invoicing management and logistics man-agement information systems to increase the information management paths positively iterated. By continuing to cultivate new digital retailing, the Company hasbeen able to adjust its market identity and marketing strategy, improve its products and services, and continuously enrich the online experience of consumers, thusstrengthening the emotional link between the brand and consumers.
Building a new digital retail
Information technology enhances user experienceCaseDuring the Reporting Period, Wuliangye's new retail APP was accessed more than 10,000 times, 16 interactive games were launched in the consumer club,customer service handled online responses more than 550,000 times, nearly 100,000 self-service invoices were issued by consumers, and the total number ofconsumers reached by special activities on virtual rights exceeded 10,000. Digital information technology provided consumers with fast shopping, rich onlineactivities, intelligent online consultation and efcient after-sales service.
Organizing online events
Drinking rationally and adhering to responsible marketing
The Company upholds the principle of honest operation, ensuring that products are not exaggerated or falsely advertised in the marketing process and that consum-ers' rights are not infringed upon. Under the concept of responsible marketing, the Company takes up the social responsibility as an alcohol company by widely publi-cizing that non-adults are not allowed to drink alcohol, opposing alcohol abuse and drink-driving, and advocating healthy and rational drinking.
We made the "Regulations on Advertisingand Publicity" to strictly prohibit the use ofambiguous concepts to mislead consumersabout the quality of products in product pro-motion and sales.
·We offered banned words for brand advertis-ing to ensure that product quality and effectsare not exaggerated.· All product packages, merchant manuals,and brochures are labelled with the riskwarning that "excessive alcohol consump-tion is harmful to health".
The promotion of rational drinking is rein-forced by the prohibition of underage drinkingand the exclusion of underage consumersfrom access to consumer rights.
1,524 cloud stores were built online to facilitate consumers to redeem their rights and self-service transactions at all times; product ap-praisal service stations were also established on the cloud store platform to make available online appraisal appointments to safeguardthe legitimate rights and interests of the Company and consumers.
We optimized the code-scanning in/ex-warehouse function, integrated the code-scanning action originally required through the smartsystem and terminal club system into the purchase, sales and inventory system, making it more convenient for exclusive store consum-ers to operate.
With 5G, AI, cloud computing and other technologies, the system makes available online customer ow statistics, remote store patrol,temperature and humidity monitoring and early warning, reminding stores to maintain a comfortable consumer reception environment atall times to enhance the consumer shopping experience.
Gathering data from more than 1,500 exclusive stores across the country, the visualization interface displays a number of indicatorsincluding sales, warning lists, red and black lists, etc., making operation management more transparent.
Cloud Store
Purchase, Sales and Inventory System
Intelligent Store Patrol System
Exclusive Store Operation Management Cockpit System
PoliciesSecurity
StrategyRequire-ments
ConceptPromotion
8384
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
A month of rational drinking activities is carried out to promote moderate drinkingCaseDuring the National Rational Drinking Campaign Month in the Reporting Period, the Company launched activities on refusing to drink-driving, preventing un-derage drinking and drinking in moderation, actively promoting a new culture of civilized and rational drinking, and promoting harmony between the alcoholindustry, society, drinking and consumer health.
National Rational Drinking Campaign Month
Customer satisfaction improvement initiatives
Take customer satisfaction as the benchmark to ensure servicequalityThe Company attaches great importance to consumer opinions, takes customer satisfaction as an important indicator, improves product quality and service methodsin a targeted manner, and creates elaborate quality and heartfelt service to create outstanding experiences for consumers.
· Performance assessment: Strictly implement performance assessment to motivate staff to do reception service well in every respect.· The Company provided training to popularize knowledge of consumer rights protection, enhance customer service personnel’s un-derstanding of consumer rights, and strengthen customer service awareness.
· Holiday care: the Company carried out consumer care work before holidays, including telephone greetings, gifts and other means.· Regular call-back: the Company paid regular call-back visits to understand consumer needs, collect suggestions and make appropri-
ate improvements.· Ofine visits: the Company paid quarterly ofine visits to consumers who have met certain requirements, presented gifts and collect-ed suggestions.
· Rewards for lling in the questionnaire: Consumers were encouraged to scan the card sent with the goods to ll in the questionnaire,
which was summarized and adjusted by the Company every month.· Increased frequency: The frequency is increased to four consumer satisfaction survey return visits per month to improve consumer
perception of the brand.
· Feedback on comments: Customer service staff was required to respond to consumer comments on different products in a timely
manner every day and to categorize them, and to summarize product comments each month and make appropriate adjustment ac-
cordingly.
During the Reporting Period, the Company's customer satisfaction was measured by the Sichuan Association for Quality, with aresult of 94.99,It was up 0.17 compared with the previous year's result of 94.82.
Internalimprovement
External strengthening
CareSurveyFeedback
8586
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTSQuality service to enhance the consumer experienceCaseThe Company has always been adhering to the consumer service attitude of "excellent quality, heartfelt service, unity of mind and staff" to create outstandingexperiences for consumers. To further learn about the voice of consumers, the Company regularly conducted consumer satisfaction surveys and organizedcustomer service training activities to continuously improve the quality of the Company's consumer services; the Company also organized regular consumerinteraction activities and provided holiday wishes and gifts to consumers. Given the different levels of consumers, the Company strived to launch marketingactivities targeted at different circles, and provided a series of services with the core value idea of "good life" to create a model of good life for Wuliangye con-sumers.
Customer service training activitiesOnline interactive activities for consumers on the Chinese Valentine's Day
Protection of rights and interests to put consumers' mind at easeThe protection of consumer rights and interests is the core foundation of the Company's business development and is the primary responsibility of the Company to themarket. In terms of management, Wuliangye New Retail has set an operation management department to coordinate the implementation of customer service, improvethe quality of after-sales service, protect consumer privacy and data security, and create a reassuring consumer experience.
Stop Loss and Compensation Policy System
After-sales Service Management SystemAfter-sales Management System for E-Com-
merce Platforms
Measures the Administration of Business Infor-mation (for trial implementation)Information Technology Management System
(for trial implementation)
Consumer Rights Protection System
After-sales ProtectionData Security Protection
Privacy and Data Security Protection System
After-sales Service System
During the Reporting Period, over 95% of complaints were addressed to the satisfaction of customers.
Secure quality consumption by strict selection and productionCaseThe Company adhered to the principle of "three characteristics and one recognition" and the requirement of "three focuses" in the segment of other Baijiuseries, and continued to optimize its products. During the Reporting Period, the Company withdrew 7 general distribution brands and 509 products. At present,the Company has reduced the number of brands to 36 and the number of products to 500, forming a development pattern in which the four strategic nationalbrands are the core and the growing brands and general distribution brands are strategically synergetic, with the co-prosperity and co-existence of multiplebrands, so as to select better quality products and more reliable dealers for consumers and guarantee the quality of the entire consumption process.
A data supervision and management office has been established to manage data storage,transmission and usage, and specify relevant assessment and supervision mechanisms to en-sure consumer information security.Management systemConstructionStaff DataSafety trainingPrivacy andDataSecurity Pro-tection
Privacy protectionInitiative
Study of data regulations and systems and safety training were regularly organized for relevantstaff, including the compliant and rational data use.Transmission of consumer-related information was encrypted and restrictions were made oninformation access parties by signing privacy protection agreements and grading account au-thority.
A customer-focused warm Baijiu company.Comprehensive and systematic training was provided to raise service awareness and improve service quality.
Our after-sales support channels include telephone hotlines, fax, letters, personal visits, and lines for reporting coun-terfeit products.The service process was continuously optimized and graded plans were developed to improve response capa-bility.
Service BeliefsSystematic trainingDiversied after-sales service channelsE?cient complaint handling system
8788
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Employee Recruitment and DevelopmentWuliangye upholds a strategy of empowering itself through talents. Resting on the core value idea of creating happiness for employees, we strictly implemented an"equal pay for equal work" philosophy, and are recruiting more people while keeping existing positions intact. We take employee empowerment and welfare into care-ful consideration, and try to develop more medium and long-term incentives in order to build a common future for employer and employee to share benets and risksand to boost the organization's healthy development for coming decades.
28%
15%34%
12%
39%
44%29%
27%72%
Awards receivedOrganizerWuliangye Family's Digital Labor Union was rated as one of the Top Ten Platforms for Enter-
prises
All-China Federation of Trade Unions, Cyberspace
Administration of ChinaNational Demonstration Enterprise of Safety Culture ConstructionChina Association of Work SafetySichuan Provincial Highly-Skilled Technician Training Construction Project
Department of Human Resources and SocialSecurity of Sichuan ProvinceSichuan Provincial Finance DepartmentGold Medal Mediation Organization for Labor Disputes
Department of Human Resources and SocialSecurity of Sichuan ProvinceSichuan Federation of Trade UnionsHighest Grade I Enterprise for Outstanding Achievements in Wage Budget Management in
2020
SASAC YibinEnterprise with the Highest Evaluation Grade A in Labor Security, Law Compliance and Good
Faith in Yibin in 2020
Yibin Human Resources and Social Security
Bureau
A Working Environment that Features Diversity and FairnessThe Company practices equal and diversied employment and equal opportunities, and adopts democratic management and communication to meet employees'reasonable demands and create a democratic and fair working environment.
Wuliangye has formulated and issued a series of policy documents, focusing on creating a diversied working environment, advocating fair opportunities, insisting onstabilizing and expanding employment, and providing more job opportunities for society through high-quality development.Employment with compliance
Diversied employmentEqual employment
We safeguard the legal rightsand interests of employees· Employment mechanism: dominated by laborcontract system and supplemented by diversi-ed employment methods.· Recruitment mechanism: dominated by socialrecruitment and campus recruitment andsupplemented by headhunting and internalrecruitment.· Management system: The Recruitment Man-agement System, the Management Measuresfor Internal Competitive Recruitment (for trialimplementation), and the Management Mea-sures for Retired Employees are all in place.
· Fair opportunities: Policies on "stability on six
key fronts " and "security in six key areas" areimplemented, and special campus recruitmentactivities are held; fair employment opportu-nities are provided for people with disabilitiespositively.· Provision of job opportunities: In 2021, 14ex-servicemen and their dependents wererecruited to work in the Company, and ap-propriate jobs were provided for people withdisabilities.
· Anti-Forced Labor: the Measures for the Imple-
mentation of Paid Annual Leave for Employ-ees, the Notice on the (Temporary) Treatmentof Staff on Layoff, and the Measures for theAdministration of Internal Layoff and Recu-peration for Seriously Ill Employees (for trialimplementation).
Company em-ployees distribu-tion by gender
Company em-ployees distribu-tion by age
Company em-ployees distribu-tion by academicdegreeMaleFemale
College and aboveSenior high school tocollegeMiddle school andbelow
30 years old and below
51 years and above41 to 50 years old31 to 40 years old
8990
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATION
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
The Company has established a democratic system and communication channels for employees to well receive information from superior leaders and expresstheir opinions, and responded positively, objectively and enthusiastically to employees' demands and opinions.
Democratic management and communication
· System of meetings of sta? representatives:
The system of meetings of staff representatives at multiple levels (group level, department level, work-shop level and subsidiary level) has been improved. 13 proposals have been considered and adopted at the group level through staff meetings, meetings ofstaff representatives and staff group meetings.· The system of sta?supervisors: staff supervisors have been equipped in accordance with the law to fully express their opinions and exercise their votingrights in the supervisor meeting, participate in special research and inspection work of the Supervisory Committee, and report to the staff council on theirperformance of duties, etc.
· Mechanism:
We have a leadership mechanism based on the party committee, a public mechanism based on the administration, a supervision mechanismbased on the disciplinary committee and the labor union, and an appraisal mechanism based on employees.· Content:
We make publicly available the development plan of the Company, the major decision-making schemes and important rules and regulations forproduction and operation, the annual production and operation targets and their completion, the bidding of engineering and construction projects, the pro-curement and supply of bulk materials, the conclusion, renewal, change and fullment of collective contracts and employment contracts, the recruitment anddismissal of employees, the evaluation and appointment of persons with professional and technical titles, the conditions, procedures, quantity and results ofthe selection of outstanding and advanced employees, the training plan for employees, safety production and labor protection and measures to prevent andcontrol occupational diseases, selection and appointment of middle-level leaders and personnel in important positions, etc.
· Forms:
meetings of staff representatives, seminars, open boards, suggestion boxes, documents, broadcasts, television, newspapers, boards, Wuliangye'sofcial website, the Wuliangye Family's Digital Labor Union platform and WeChat public account.
· Labor dispute mediation: The Company has a labor dispute mediation committee formed by the labor union, human resources department and staff repre-sentatives; grassroots units have labor dispute mediation groups; front-line teams have part-time mediators; all these have formed a three-tier labor disputemediation network system covering the Company, workshops and teams.· Listening to the voices of employees: we implemented the "Staff Visiting Day" system, and received suggestions and suggestions from employeesthrough the Wuliangye Family's Digital Labor Union platform, and carried out various research activities on staff canteen meals, shift dormitories, drinkingwater at work and frontline staff in the marketing system.
Broadening communication channels for employees
Improvement of the democratic system
Adherence to the openness of factory a?airs
Building a "Gold Medal Mediation Organization for Labor Disputes" to resolve conicts and disputesCase
In 2021, the Wuliangye Labor Dispute Mediation Committee was ofciallyawarded as one of the rst 13 "Gold Medal Mediation Organizations forLabor Disputes" in Sichuan. The establishment of a network of mediationorganization for labor disputes strengthened communication efciency andresolved conicts and disputes at the grassroots level and at the source.
Granting of the "Gold Medal Mediation Organization for Labor Disputes”Employee care, creating a happy working environment
The Company continues to improve its welfare system and develop a comprehensive professional talent training system and incentive mechanism to help employeesimprove their techniques and career development and enhance their well-being and sense of belonging.
Wuliangye provides differentiated welfare support for employees, actively carries out various sympathy activities and corporate culture building activities, lays care andconcern efforts for employees, meets the needs and expectations of employees, and continuously improves the living standards of employees.
Sta? welfare
Mandated benets· Five insurance and house fund:
we paid pension insurance, un-employment insurance, medicalinsurance, work injury insuranceand maternity insurance foremployees, and established aworking group for supplementarypayment of pension insurance.
· Paid leave: national statutoryholidays, annual leave, maternityleave, marriage leave, parentalleave, etc.
Employee benets
· Leave benefits: seniority leave,blood donation leave, parentalleave, etc.· Financial benefits: corporate an-
nuity scheme, high temperatureallowance, etc.· Growth benefits: technique up-
grading, training, further training,etc.· Facility benefits: welfare book-store, gymnasium, psychologicalcounselling, etc.· Supportive welfare: physicalexamination, legal assistance,psychological counselling, birthdayofferings, cultural and sports activ-ities, etc.
Full employee benets· Financial subsidies: applicationfor settlement and business start-up subsidies for the introduction oftalents with Master's and Doctor'sdegrees.· Living benets: application for thequalification of talent flat for theintroduction of talents with Mas-ter's and Doctor's degrees, andcoordination for the schooling oftheir children.· Honor recognition: various talentsare recommended to participate inhonor evaluation.
Benets for special groups
· Women's benefits: mommy &baby room, quarterly female work-er supplies, family education lec-tures, fun competitions for femaleworkers, etc.
· Benets for young workers: train-
ing and learning opportunities,technique enhancement programs,sports and competition programs,living services, etc.
· Benefits for workers in need:
Wuliangye education fund, subsi-dized funds for workers in need,mutual help and hardship fund,internal layoff and recuperation forseriously ill workers, etc.
9192
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Organizing elderly activities and caring for retired employees
We organized cultural and sports activities to enrich the lives of employees
Case
Case
In 2021, the Company allocated RMB418,000 (including RMB60,000 for funeral expenses) for special activities for the Wuliangye Elderly Sports Association,provided 1,150 square meters of dedicated activity space for the Association, distributed holiday gifts and offerings during the Dragon Boat Festival, Mid-Au-tumn Festival and Spring Festival, and arranged for 4,814 people to undergo health examinations throughout the year to implement the Company's policy ofCare and Happiness for the Elderly and protect and enrich the lives of retirees in their twilight years.
During the Reporting Period, the labor union organized 73 sports and cultural activities such as shing, mountain climbing, ower arranging and healthy runs,while employees also initiated and carried out 430 "Interest League" activities such as tness, Tai Chi, badminton and basketball through the Wuliangye Family,with 6,853 participants, enhancing employees' sportsmanship and awareness of exercise.
Elderly activities
Table Tennis Competition
During the Reporting Period, the Company established 396
practical projects such as salary reform and occupational health,
394 of which have been completed and
2 are being implemented to address the urgent needs and aspirations of employeesand to effectively respond to practical demands for employees.
Wuliangye empowers its employees and supports employee development through a wide range of orientation programs and training sessions for new employees.
Education
· Pre-job training: A combination of online and ofine training activities are organized for new recruits, including lectures, case stud-ies, practical exercises and outreach training, covering corporate culture, rules and regulations, professional ethics, professionaletiquette, social responsibility, quality management, safety precautions and other aspects.· Job rotation system: new college graduates are organized to have rotation studies in the frontline of marketing and production.
· Vocational skill training: We vigorously implement the vocational skill upgrading project, make full use of national encouragementpolicies, and organize liquor production workshops and new employees to receive work-based training.
· Talent training channels: The "Management Measures for the Training of Baijiu Tasting and Evaluation Talents (for trial imple-mentation)" were introduced to encourage young employees with a talent for tasting and evaluating Baijiu to master tasting andevaluation skills, and to explore channels for training tasting and evaluation talents across job types, positions and functions.
· Sound internal competitive recruitment mechanism: Wuliangye has issued the "Management Measures for Internal CompetitiveRecruitment (for trial implementation)" to smooth the internal promotion channel and implement internal competitive recruitmentfor some middle-level management positions in the Company.· Establishment of a reserve talent pool: In order to realize the stratied, graded and classied management of outstanding talents,
Wuliangye has issued the "Measures for the Introduction and Training of Talents (for trial implementation)" and established a re-serve talent pool.
Quality development for new college graduatesTraining courses for new college graduates
Training fornewcomers
On-the-jobtraining
Talent Man-agement
9394
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Wuliangye emphasizes a skill-value oriented salary distribution system, where staff performance pay, skill allowances and one-off skill rewards aredirectly or indirectly linked to skill levels.
Performance bonus packages are allocated according to teamsof technicians, with workshops and teams with higher technicalcompetence and producing more quality Baijiu being given moreperformance bonuses.
Performance paySalary distribution systemSkill allowanceSkill allowances are paid on a monthly basis according to thelevel of technical certicates held by technicians, including: seniorworker, technician and senior technician.
Honors and AwardsCraftsmen and masters who have achieved outstanding scienticand technological innovation and outstanding skill contribution arepublicly commended and given a one-off skill reward of varyingamounts with sufcient incentive.
Salary incentive
Implementing Craftsmen Incubator Program for Enhancing Skill SetsCase
In 2021, the number of Craftsmen Incubator Program was expanded to 16, covering the Company's starter propagation, liquor production, tasting and blending,liquor design, machinery manufacturing, bottle making and other sectors, and the number of leading technicians and members has increased to 282. The Com-pany carried out 67 apprenticeship training sessions, with more than 1,100 participants, to enhance the professional skills of employees.On 8 May, the Company held a meeting for the promotion the reform of the industrial workforce construction and for the summary and commendation of theCraftsmen Incubator Program for 2020, commending 65 technicians at all levels, including model workers, artisans and Baijiu evaluators for 2020, and 86 out-standing leading technicians and members for 2020, to enhance the sense of gain and happiness of outstanding talents.
Summary and Commendation of the Craftsmen Incubator Program for 2020Craftsmen Incubator Program
Safe production and protection of employees' healthDuring the Reporting Period, the Company promoted system improvement and practical actions on the two major employee responsibility issues: production safetyand occupational health, and strictly implemented pandemic prevention and control to safeguard the health and safety of employees.
· The overall safety prole of the Company was stable throughout the year, with 0 large and above production safety accidents, 0
general and aboveequipment safety accidents, and 0
re accidents, achieving 37 straight years without re since records were kept.· Wuliangye continued to maintain the Company's occupational health and safety management system certicates.· A total of 20,168
employees were covered by health examinations throughout the year at a cost of over RMB14.99 million, of which
10,457 people in contact with food production positions participated in the examinations, with an on-the-job health examination rate of100%.·
We have established health examination files for food workers, with
10,457 people eligible for health certificates, at a total cost ofRMB803,600.· We organized occupational health examinations for
2,278 people at a cost of RMB1.58 million.
· We were awarded National Demonstration Enterprise of Safety Culture Construction, Advanced Production Safety Entityamong Central and Provincial Key Enterprises, Excellent Entity of Sichuan Production Safety Month, Advanced Entity inSafety Production Target Management among Municipal State-owned Enterprises in 2021 and other honors.· The Five Entries (entry into rural areas, communities, enterprises, schools, and families) of safety publicity passed the
inspection of Sichuan Provincial Safety Ofce.· We won the rst prize in Yibin's emergency storytelling competition of Celebrating the Centennial of the Party and Buildinga New Civilized City".· We won the third prize in the Yibin Knowledge Contest on the Newly Revised Production Safety Law.· The employee-created video work on occupational health communication titled My Voices on Occupational Health won therst prize in the national "2nd Occupational Health Communication Campaign.
9596
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
System constructionWe have established and operated an occupational health and safety management system in accordance with the requirements of GB/T45001-2020/ISO45001:2018 standard.
The Company adheres to the concept of Putting People And Their Lives First and the occupational health and safety policy of Safety First, Precaution Crucial, FullParticipation, No Failure, and conscientiously implements the Five Normalizations including normalized education, investigation, rectication, punishment and account-ability to continue to optimize our management mechanism and working environment to ensure the health and safety of our employees in all aspects.
The Company carried out various safety inspections, safety publicity, safety training and emergency drills to strengthen occupational health and safety management.Health and Safety InitiativesHealth and safety practices
The Company's leaders led safety inspections
Special safety inspections were carried outProduction Safety Month activities were organized to raise sta? safety awarenessCase
The Company carried out Production Safety Month, "119" Fire Fighting Awareness Month, "Production Safety Law" Promotion Week and other thematic activi-ties to promote the new "Production Safety Law" and "Fire Prevention Law" and raise employees' safety awareness.
"Launching ceremony of "Production Safety Month
System guarantee
We have formulated and are implementing more than 30 production safety management rules and regulations, including the Production SafetyManagement System, Fire Safety Management Regulations and Production Safety Management Performance Assessment Measures.Organizational guarantee
The Production Safety Committee and the Production Safety Supervision Department have been established to provide adequate protection inpeople, money and materials required for occupational health and safety.Emergency guarantee
We laid efforts on the emergency response team, emergency equipment, emergency response capability, emergency plans and drills, striving topromote the modernization of emergency management capability.Hidden Danger ManagementWe have established a dual prevention mechanism of graded risk management and control and hidden danger investigation and management,implemented risk management and control in four grades: red, orange, yellow and blue, and carried out standardized hidden danger investigationand management according to relevant national laws, regulations and standards to nip hidden dangers in the bud.Safety culture
We create a safety culture with unique corporate characteristics, build a safety publicity team, and earnestly organize the "Five Entries" of safetypublicity and a series of safety publicity activities to enhance the safety awareness of all staff.Working environment guaranteeWe improved the appearance of workshops, upgraded the toilets and washrooms in the factory.
Eco-environmental construction
The Company's industrial park is a national AAAA grade industrial tourism scenic area; the coal-to-gas boiler project was implemented; an eco-logical wetland park was constructed.
9798
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTSSafety knowledge training was organized to improve sta?'s safety capability
Carrying out AIDS awareness campaign
Case
Case
The Company conducted 82 training sessions on safety management of related parties, management of the production safety responsibility listing system, andthe new version of the occupational health management manual and procedure documents, with 6,137 participants, to improve the safety skills and safety op-eration capacity of employees.
Taking World AIDS Day on 1 December as an opportunity, the Company organized a series of AIDS awareness activities in all units to prevent and control theinfestation of HIV at source and secure the health of employees.
Special equipment safety management training
AIDS awareness campaign
During the recurrence of the pandemic, the pandemic prevention and control ofce of the Company continued to strengthen organizational leadership, to make clearthe responsibility of pandemic prevention and control at all levels, to strictly guard against the pandemic, and to make greater efforts for the regular prevention andcontrol measures in a strict and detailed manner, so as to effectively protect the health and safety of all employees and full the responsibility and commitment of astate-owned enterprise.
Pandemic prevention and control e?orts
Strengthen organizational leadershipBuild a pandemic prevention and control
system
Put in placeNormalized prevention and control
measures
Strengthen supervision and inspectionImplement management responsibilities· Supervision and inspection: We keep records
and report information, supervise and inspectthe implementation of pandemic preventionand control measures in all units, constantlyidentify risk points and weak links in preventionand control, and make up for shortcomings andloopholes in a timely manner.
· Specify the responsible person: In accordancewith the principle of "whoever manages isresponsible", we provide timely guidance torectify problems found during inspections, andhold accountable units and relevant respon-sible persons who fail to perform their dutiesand neglect their work by following the relevantregulations.
· Staff management: The passage of staff is
accompanied by temperature measurement,health code presentation scanning to strength-en staff track management and to controlthird-party staff and key areas.· Health control and management: we imple-ment measures such as wearing masks, dailycleaning, ventilation and disinfection, strength-en food safety and well secure materials andsupplies.· Control all kinds of gatherings: we upholdthe principle of "whoever hosts a gathering isresponsible", and strictly control the frequencyand size of meetings.· Strengthen publicity education and scientificprevention: we carry out health promotion andeducation activities and promote vaccinationfor all staff.
· Organizational system: a leading group forpandemic prevention and control has been es-tablished for overall responsibility and uniedcommand. The leading group for pandemicprevention and control governs a compre-hensive coordination group, a pandemicprevention and control group, a health controlgroup, and a material supply group functioningthrough close cooperation.· Emergency management: we formulated the"COVID-19 Prevention and Control Emergen-cy Plan" and carried out emergency drills toimprove the Company's emergency responsecapability for pandemic prevention and control.· Pandemic prevention strategy: We adhereto the daily "Pandemic Report", publish andinform the actual situation and problems ofpandemic prevention and control, and adjustthe direction of the Company's pandemic pre-vention in a timely manner.
Investor Relation ManagementThe Company strictly follows the Company Law, the Securities Law, the Guidelines of the Shenzhen Stock Exchange for the Investor Relations Management by ListedCompanies and other applicable laws, regulations and regulatory provisions, the Articles of Association, the Information Disclosure Management System, the InvestorRelations Management System and other systems to announce information to the public through the designated media within the prescribed time and in accordancewith the prescribed procedures and methods, and to ensure that the information disclosed is true, accurate, complete and timely. The Company also proactively orga-nizes various investor relations activities to strengthen communication and exchanges with investors, with particular emphasis on shareholder returns and protectionof the interests of small and medium-sized investors, and is committed to maximizing the legitimate rights and interests of the Company, its shareholders and otherrelevant stakeholders.
99100
WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
· Add three independent directors· Four independent directors provide moreprofessional advice and suggestions on thestandardized operation of the Board of Direc-tors to improve the scientic decision-makingcapability of the Board of Directors and thecorporate governance, and further preventdecision-making risks.
· Continued live general meeting of sharehold-ers· The general meeting was held by means oflive broadcast to facilitate the participation ofinvestors, especially small and medium-sizedinvestors, enhance the transparency of theCompany and actively safeguard investors'right to be informed.· Our general meeting received high attentionfrom the capital market, with 146,900 viewers,up 18,900 compared to the Annual GeneralMeeting 2019.
· The annual performance presentation washeld online· During the Reporting Period, the Company,for the third consecutive year, held its 2020Annual Report and 2021 First Quarter Reportperformance presentation in the form of anonline text Q&A session and live photos, whileopening the oor to all investors to ask ques-tions, so that small and medium-sized investorscan communicate directly with the Company'smanagement to further protect their rights andinterests.
The Company focuses on shareholder returns and always shares the development fruits with investors. The total cash dividends in 2020 reachedRMB10.015
billion for the rst time, accounting for 50.19% of the net prot attributable to the parent company in the year. Since its listingin 1998, the Company has distributed cash dividends
18 times, with a cumulative cash distribution of RMB49.597
billion, 13 times the totalamount of RMB3.815
billion raised.The Company's prot distribution plan for 2021 is to distribute cash dividends of RMB30.23 (pre-tax) for every 10 shares to all shareholders based onthe existing total share capital, amounting to RMB11.734 billion (pre-tax).
Investor Communication Channels
Sharing the development fruits with investors
Initiatives to protect the interests of small and medium-sized investors
Optimizing structure of the
Board of Directors
Protecting investors' right tobe informed
Unblock communicationchannels
Disclosure ofInformationPeriodic ReportsInterim Announcement
MeetingsBrokerage StrategySessionsConference Calls
Responseto EnquiriesQ&A session with the Shen-zhen Stock Exchange
Ofcial EmailInvestor Hotline
Reception andResearchField researchTelephone Research
We hold preparatory meetings for the preparation of periodic reports to safeguard the legitimate rights and interests ofinvestorsCase
In 2021, the Company held a preparatory meeting for the preparation of each periodic report, including two preparatory meetings for the preparation of the2020 annual report and two preparatory meetings for the preparation of the 2021 third quarterly report. The Chairman of the Company personally called andchaired the meetings, attaching great importance to the work related to information disclosure, ensuring the quality of disclosure of periodic reports and safe-guarding the legitimate rights and interests of investors.
Annual Report Working MeetingThe rst working meeting for the third quarterly report
For the year 2021The Company, in relation to investor interaction:
Responded to
428 online questions from investors through the interactive platform of the Shenzhen Stock Exchange and exchanged with investors via
calls for more than 1,000 times.Communicated with domestic and overseas fund companies, securities companies, QFII (Qualied Foreign Institutional Investors) and individual sharehold-ers in
66 batches, including a
total of 1,799 persons.In relation to information disclosure:
For 6 consecutive years, we were awarded A grade in the annual information disclosure assessment of listed companies by the Shenzhen Stock Ex-change.We disclosed a total of 73
periodic and interim reports.We were awarded the Best Investor Relations Award of China Listed Companies and the Best Board of Directors for Investor Relations of ChineseCompanies Listed on the Main Board.We were awarded the Best Practice Case of 2020 Annual Performance Presentation for Listed Companies and the Best PracticeCase of 2021 Board of Directors of Listed Companies by the China Association for Public Companies.
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Name of AssociationPositionChina Alcoholic Drinks AssociationA Vice Chairman OrganizationChina National Light Industry CouncilA Vice Chairman Organization Specially InvitedChina National Association for Liquor and Spirits CirculationA Vice Chairman OrganizationChina Chamber of International CommerceA Vice Chairman OrganizationChina Association for the Promotion of Patriotism and Support for the Armed ForcesA Vice Chairman OrganizationChina Enterprise Confederation, China Enterprise Directors AssociationA Member OrganizationBeijing Intellectual Property Judicial Protection AssociationA Member OrganizationThe China Council for Brand Development (CCBD)A Member Organization
China Trademark AssociationA Standing Director OrganizationChina Intellectual Property SocietyA Member OrganizationChina Association for Public CompaniesA Vice Chairman Organization
China Institute of Internal AuditA Member OrganizationChina Association of Work SafetyA Member OrganizationChina Fire Protection AssociationA Member OrganizationChinese Society for Environmental SciencesA Member OrganizationChina Ecological and Environmental Protection Facilitation AllianceA Standing Director OrganizationThe Industry Association for the Golden Triangle of Chinese LiquorA Vice Chairman OrganizationCommittee of Traditionally Fermented Foods, Chinese Institute of Food Science and TechnologyA Vice Chairman Organization
China Trade Association for Anti-counterfeitingA Member OrganizationThe China Association for Quality (CAQ)A Vice Chairman OrganizationChina National Food Industry AssociationA Vice Chairman Organization
Various Associations Joined by Wuliangye
Moutai's Visit to Wuliangye for In-Depth Exchanges on Future Development of the Enterprise and the Industry
Undertaking the "14th Five-Year Plan" Strategic Development Seminar of Chinese Strong Flavor Baijiu to Contribute theStrength of Wuliangye to High-quality Development of the Industry
Case
Case
On 10 December 2021, Moutai Group held a discussion and exchangemeeting with the Company. On the meeting, Ding Xiongjun, Secretary ofParty Committee and Chairman of Moutai Group, made in-depth exchangeson future development of the enterprise and the industry with Li Shuguang,the then Chairman of Wuliangye Group and Secretary of Party Committeeof Yibin Wuliangye. Both sides agreed that Moutai and Wuliangye, as theleading enterprises of Chinese Baijiu, should apply themselves on a newdevelopment stage, implement a new development concept and build a newdevelopment pattern, further improve mutual exchange and communicationmechanism, promote the traditional friendship of Moutai and Wuliangye tobe played in a higher level and a larger range, create a new cooperation sit-uation of Maotai and Wuliangye, and bring new vitality into the high-qualitydevelopment of Chinese Baijiu.
On 6 April 2021, the "14th Five-Year Plan" Strategic Seminar of ChineseStrong Flavor Baijiu, sponsored by China Alcoholic Drinks Association andundertaken by Wuliangye, was held in Chengdu. The representatives ofsome famous liquor enterprises, such as Song Shuyu, Chairman of ChinaAlcoholic Drinks Association, Li Shuguang, the then Chairman of WuliangyeGroup and Secretary of Party Committee of Yibin Wuliangye, Zhang Lian-dong, Deputy Secretary of Party Committee and Chairman of Yanghe Stock,Liu Miao, Secretary of Party Committee and Chairman of Luzhou Laojiao,and Zhou Qingwu, Deputy Secretary of Party Committee of Gujing Groupand General Manager of Gujing Distillery, attended the seminar. On theseminar, the representatives of all liquor enterprises shared their opinionson how Strong Flavor Baijiu can bring good wine to the good life, contributetheir strength to the high-quality development of the industry, and contributetheir wisdom and strength to the healthy and sustainable development ofChinese Nongxiangxing Baijiu and Chinese Baijiu industry.
The Discussion and Exchange Meeting between Moutai and Wuliangye
The "14th Five-Year Plan" Strategic Development Seminar of Chinese
Strong Flavor Baijiu
Name of AssociationPositionNational Technical Committee 532 on Brand Evaluation of the Standardization Administration of China (SAC/
TC532)
A Committee Member OrganizationNational Technical Committee 471 on Brewing of the Standardization Administration of China (SAC/TC471)A Committee MemberSubcommittee 7 on Winy Reference Materials of National Technical Committee 118 on Reference Materials of
the Standardization Administration of China
A Member OrganizationSub-committee 2 on Strong Flavor Baijiu of National Technical Committee 358 on Baijiu of the Standardization
Administration of China (TC358/SC2)
A Member OrganizationWuliangye continues to lead industrial development with a more open attitude, more innovative thinking and a more forward-looking vision, demonstrating the respon-sibility of a state-owned enterprise. Moreover, through measures such as actively participating in industry discussions and in the preparation of industry standard, andassisting local liquor enterprises, Wuliangye shares innovation achievements, promotes the R&D and innovation of the industry, continuously improves the standard,and leads industrial development in a high-quality way.Industry Exchange, Sharing, Building and Moving Forward TogetherWuliangye actively joins various kinds of associations, hosts and participates in various kinds of industry exchange activities, and cooperates with famous liquor enter-prises with mutual trust and assume responsibilities together, continuously contributing Wuliangye's wisdom to the realization of high-quality industry development.
Common Industrial Progress
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATION
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Undertaking The 10th Chinese Baijiu Top Summit to Point a Way toward the Development of Baijiu Industry
CaseOn 23 April 2021, The 10th Chinese Baijiu Top Summit was held in Yibin, Sichuan. The main person in charge of China Alcoholic Drinks Association and thenine main persons in charge of large enterprises in Baijiu industry exchanged ideas on high-quality development of Chinese Baijiu industry during the "14thFive-Year Plan" period, centering on the theme of "New Beginning and New Layout for New Accomplishments". Li Shuguang, the then Chairman of WuliangyeGroup and Secretary of Party Committee of Yibin Wuliangye, made an exchange speech on the theme of "Creating a New Situation of High-quality Develop-ment of Chinese Baijiu under the Guideline of 'Three New' Theory". There were nine consensuses agreed in the summit, pointing a way toward the develop-ment of Baijiu industry.
The 10th Chinese Baijiu Top Summit
Formulate Standards to Improve Industrial Standardization
Help Liquor Enterprises and Assume Responsibility
Wuliangye actively participates in the formulation of industry standards to make industry standards more specic, scientic and complete in the aspects such astechnology and technique, quality control, testing methods, labels, packaging and storage, strongly devoting outstanding contribution to the promotion of achievinghigh-quality development of the industry.
In 2021, Wuliangye carried out technical consultation assistance for two "Xiaojinhua" liquor enterprises of "Xiaojiaolou" and "Jiangkouchun" in Pingchang County,Bazhong City. On the basis of "Wuliangye" technology, combined with the actual situation of the enterprises assisted, Wuliangye carried out a series of consultantservices such as fermentation pit and mud, fermentation technique, product research and development, quality system, and staff training. At present, the productionlevel, quality control level and staff skills of the assisted enterprises have been greatly improved, highly recognized by local governments, leaders of industry associa-tions and the assisted enterprises, thus fully reecting the responsibility of the leading enterprise, and further upgrading the social image of the state-owned enterpriseWuliangye.
Type of StandardName of StandardReleaseNational Standards
Quality Requirements for Baijiu Part 1: Nongxiangxing BaijiuOfcial Release
Terminology of Baijiu IndustryOfcial ReleaseLocal Standards
Sichun Liquor (Nongxiangxing) Age Liquor TerminologyOfcial ReleaseSichun Liquor (Nongxiangxing) Age Liquor Production Technique
Specications
Ofcial ReleaseIndustrial standardsSpecication for Baijiu Quality Safety Traceability System
Have been reported to the Ministry of Industry and InformationTechnology by China Light Industry Information Center andbeen in the phase of approval and release
The Revision of Standards Led and Participated by Wuliangye during the Reporting Period
Assist in improving traditional fermentationtechnique and standardize the foundationdevelopment of fermentation pit
Assist in improving the management sys-tem of the product and elevate the quality
management
Assist in improving professional quality ofthe sta? and enhance technical training of
talents· Know-how training: Regularly or irregularly or-ganize and help the staff of liquor enterprises toparticipate in relevant know-how training of dis-tilled yeast making, liquor making, evaluating andblending.
· On-site learning: Organize and select technicalmanagement backbones of assisted enterprisesto visit Wuliangye workshop for on-site learning,so as to effectively improve the professional skillsand quality control level of employees.
· Research and development of new products:
Assist liquor enterprises in revising and improvingtechnique documents of new product researchand development; cooperate with Xiaojiaolouin the development and research of new forestecological products and new low-drunken degreeproducts of Xiaojiaolou, and assist in the sampleselection and technical blending of base liquor forJiangkouchun Chunhe series new products.· Product lling: Assist Jiangkouchun in managingand improving on-site quality control process andsystem, and combine on-site guidance and spotcheck to promote the improvement of its produc-tion volume and qualication rate year on year.
· Fermentation pit and mud: Assist Xiaojiaolou inbuilding new fermentation pit; guide Jiangkouchunto culture and produce fermentation liquor in astaggered way.· Distilled yeast making: Assist Jiangkouchun in up-grading technical improvement of equipment fordistilled yeast making and rectifying the workshopfor distilled yeast making.· Fermentation technique: Assist liquor enterprises
in revising and improving the quality managementsystem documents such as production techniqueand operation procedures, and provide regularand irregular on-site technical guidance.
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Rural RevitalizationWuliangye has always been actively devoted to the main battleeld of rural revitalization with a high sense of political responsibility and historical mission. The Compa-ny gives rst priority to industrial assistance, and continues to promote the development and improvement of people's livelihood in assisted regions, helping to realize"industrial prosperity, ecological livability, rural civilization, effective governance, and afuent living".
Master the overall assistance in poverty alleviation through e?cientmanagementWuliangye set up a leading group for paired assistance to coordinate the assistance, made a series of arrangements to consolidate and expand the achievements ofpoverty alleviation linked up with rural revitalization effectively, strengthened the organization and leadership, and solidly promoted paired assistance.
The Secretary of Party Committee of the Company took charge personally and served as the leader of the leading group for paired assistance in rural revitalization.Through task setting of the Party Committee, pairing of the grass-roots Party organizations and implementation of the front-line Party members and cadres, the trinityassistance organization system of "headquarters, staff ofce and combat team" was comprehensively constructed.
Wuliangye insists on strengthening the Party's leading role, constructing a new development model of "Party building with characteristic industry", "Party building withgrass-roots governance" and "Party building with talent training", and forming a new atmosphere of rural revitalization of "industries enrich agriculture, organizationsboost agriculture, and talents assist agriculture".
The leading organization system of assistance in poverty alleviation
Three Models
Awarding unitHonorsThe CPC Central Committee and State CouncilNational Advanced Individual for Poverty AlleviationThe Poverty Alleviation Ofce of the State CouncilTop 50 Comprehensive cases of accurate Poverty Alleviation by EnterprisesThe CPC Sichuan Provincial Committee and GovernmentNational Advanced Individual for Poverty AlleviationState-owned Assets Supervision and Administration Com-
mission of Sichuan Province
Top Ten Characters of State-owned Enterprises for Poverty Alleviation in Sichuan ProvinceSichuan Provincial Economic and Information DepartmentSichuan Provincial Advanced Collective for Poverty Alleviation in Industrial FieldOrganizing Committee of China Agricultural Brand Annual
Award Ceremony
2021 China Agriculture Award for Ten Outstanding Contributions to Rural Revitalization
Poverty Alleviation Honors
The leading organization system of assistance in poverty alleviation
Leader of the Leading GroupDeputy Leader of the Leading GroupMembers of the Leading GroupDirector of the OfceOfce Member OrganizationParty-Mass Working Department, Administration Ofce, Financial Management DepartmentFamily Planning and Logistics Service Department, Purchasing and Materials Service Center, etc.
Head of Party-Mass Working Department
Leadership of the CompanyDeputy Secretary of Party CommitteeSecretary of Party Committee
· Construct bases: Build a more than
1 million mu of special grain base forliquor making; build a bamboo and tearaw material base covering the wholeYibin City; build a 42 mu of fruit andvegetable base of Wuliangye in Litang,Qinghai-Tibet Plateau and a 1,100 muof bamboo forest industrial demonstra-tion base of Wuliangye in Qingshanyan.
· Construct industrial road: Build a 1,054
kilometers of rural revitalization industri-al road.
· Improve the "two committees" construc-tion in the village: Select and send theassisted cadres to the assisted areas,serving as Deputy Secretary of PartyCommittee of the county and First Sec-retary of the village respectively.
· Broaden the Party building platform:
Build the demonstration site for jointconstruction of villages, enterprises andParty building, as well as multiple Par-ty-masses services centers and homesof the masses.
· Strengthen enterprise cooperation:
Strengthen cooperation with largeenterprises online and offline such asFresh Hema, JD, and Zhuhai Agricultur-al Investment Holdings Group.· Put up sales platforms: Hold special
sales exhibitions and internal purchasefairs for employees, and build a salesarea for poverty-alleviation productsthrough labor union platform.
· Guarantee farmers' earnings: Donate
RMB2.25 million of poverty alleviationfunds to Litang County and XingwenCounty with the equity quantied as thecapital held by rural collective organiza-tions and farmers.· Link the interests of various parties:
Promote various ways of interestslinking such as "farmers' shares buy-inwith guaranteed income and dividendsby shares", and "order acquisition withdividends".
· Shape brands: Strengthen the exca-
vation and cultivation of "San Pin YiBiao" agricultural products, and assistthe poverty-alleviation areas to build re-gional special brands of "Qingshanyan"and "Zangziyuan".
· Improve the quality: Improve the prod-
uct quality system for assisted products,and introduce mature and leading brandpackaging and marketing management.
· Develop collective economy: Leveragemore than RMB14 million of socialcapital by means of capital incomeassistance, capital verification basedon physical inventory, and the enclaveeconomy model.· Realize large-scale operation: Convertthe transferred land, infrastructure,supporting facilities of industrial devel-opment and so on into shares of ruralcollective organizations.
Develop new business forms through "Partybuilding with characteristic industry"
Establish a new mechanism through "Partybuilding with grass-roots governance"
Build the base based on long term
Long-term e?ective leading mechanism
Explore markets online and o?ine
Interest connection mechanism
Strengthen quality to build brands
Capital leverage mechanism
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WULIANGYE YIBIN CO., LTD.
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Assist truly, and implement the assistance planWuliangye plans the assistance projects to lay the foundation, promote development and manage in long term, focusing on industrial assistance, continuing to pro-mote the long-term effective development and improvement of people's livelihood in assisted regions, promoting the overall revitalization of rural industries, talents,culture, ecology and organizations in assisted regions, and helping to realize the common prosperity.
The Company had drawn up a ve-year plan (2021-2025) for paired assistance. According to the resource endowment, current industrial situation and developmentneeds in the assisted counties, the Company planned the direction and content of paired assistance in a targeted way, and continued to promote the development andimprovement of people's livelihood in assisted regions.
In 2021, the Company invested RMB681 million in total in industry, consumption, education and other aspects, continued to undertake the assistance in Litang County,Ganzi Prefecture, and Pingshan County, Yibin City, and continuously promoted the long-term development and improvement of people's livelihood in assisted regions.
Five-year plan for paired assistance
Key assistance in 2021
Key work direction and content of "Five-Year Plan"
Key assistance achievements in 2021
Paired assistance regionsNaisha Village, Mula Town, Litang County, Ganzi Prefec-
ture (provincial paired assistance)
Hero Village, Qingping Yi Nationality Town, Pingshan County, Yibin City (city paired assistance)
· Wuliangye consolidated the construction achievements of industrial base for fruits and vegetables (mushrooms) in Qinghai-TibetPlateau:
It drove economic income in rural collective organizations to reach more than RMB5 million, provided more than 30 xed employment positionsand more than 100 seasonal employment positions, with total payroll of nearly RMB1 million paid annually, average income of over RMB20,000 for migrantworkers, and dividends of RMB500,000 for 74 households of farmers and herdsmen.
· Wuliangye actively participated in the planning and construction of vegetable supply base "vegetable basket" in Litang County:
Ittook Naisha Village as the pilot, built a whole industrial-chain vegetable park featured by "branding of front-end channel, systematization of local productionand sales, regionalization of radiating surroundings", and revitalized 25 winter-warm vegetable greenhouses and 609 mu land, driving the average annualincome of Naisha village to exceed RMB10,000.· Wuliangye promoted the development of bamboo forest (seedling nursery) industrial demonstration base in Qingshanyan:
It con-tinuously conducted the development of multiple industries, implemented the planting of Tricholoma matsutake and Dictyophora indusiata, and introducedand planted Bambusa vulgaris Schrader ex Wendland 'Wamin'. The scale of the project construction reached tens of mu.· Wuliangye assisted the sustainable development of bamboo industry and tea industry in Yibin region:
It took over nearly 1 million ton ofbamboo materials from Pingshan County, Xingwen county, Gong County, Cuiping District and other counties and districts in Yibin.
Wuliangye focused on the construction of industrial base, and continu-ously released the vitality of industrial revitalization
· Create an employment platform: Pro-vide a high-quality platform for localtalents to return home for self-employ-ment and employment.
· Set up special funds: Donate RMB1
million to Xinlong County and YajiangCounty in Ganzi Prefecture, and LeiboCounty in Liangshan Prefecture respec-tively to set up special funds for talentdevelopment.
· Funds donation: Donate more thanRMB28 million of education aid fundsto support "prevent dropout and ensurecompulsory education" in Tibet relatedprefectures and counties; establishWuliangye Educational Fund.
· School construction: Build net informa-
tion schools.
· Cultivate and train talents: Encourage
and guide farmers to participate in theactual operation of enterprises such asproduction management, funds seekingand markets exploration.
· Strengthen demonstration andguidance: Select 5 experts who "loveagriculture, understand technology andbe good at management" to grow intoleaders of assisting villages to becomerich.
Cultivate new villagers through "Party building
with talent training"Make improvement to attract outsideinvestment and talents
Set up platforms to pave the way to
talents cultivation
Make good use of talents without limita-
tion to any type
· Construction of industrial base:
Focus on the construction of characteristic industrial demonstration base for fruits and vegetables of Wuliangye in Qin-ghai-Tibet Plateau and industrial demonstration base for high mountains and forest land of Wuliangye in Yi Nationality Town, etc.· Development of industrial base: Further develop the effects of special grain base for liquor making, bamboo material acquisition base, tea raw material
procurement and so on to increase farmers' earnings.
· Increase product procurement:
Actively purchase high-quality agricultural products in assisted regions by means of normalized purchasing instead ofdonating, centralized procurement for important solar terms, and pre-purchase orders in canteen, etc.·Organizing product sales through exhibition: Hold special exhibitions of agricultural products, organize the products in assisted regions to appear in the ex-pressway, airport and supermarket.· Explore sales channels:
Participate in various large-scale exhibitions and sales activities, and display the products on "832" platform.
· Do a good job in assisting students with love:
Provide scholarship awards and subsidies to students and families in difculty from different catego-ries and levels, so as to ensure the effectiveness of educational assistance projects such as "Wuliangye Educational Fund" and "Litang Aid Fund for Univer-sity Students in Difculty".· Improve the infrastructure:
Help and support a number of targeted and effective infrastructure construction projects to effectively improve the living en-vironment.
Cultivate and expand industries
Develop consumption related assistance
Adhere to the bottom line of poverty alleviation
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATION
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Public Welfare and CharityIn 2021, Wuliangye actively launched public welfare and charity activities, devoting itself to public welfare and charity in poor areas, and assisting poor groups withcompassion. Meanwhile, the Company actively fullled its social responsibilities to support national defense and military construction, and vigorously promoted the in-depth development of military-civilian integration.
HonorsOrganizerThe Third Sichuan Charity Award - The Most Charitable ContributorThe People's Government of Sichuan ProvinceThe Third Sichuan Charity Award - The Most Inuential Charitable
Organization
The People's Government of Sichuan ProvinceCompassion Enterprise Award for Caring for Next Generation in
Sichuan
Sichuan Provincial Committee for Caring for Next GenerationBureau of Veteran Cadres of the CPC Sichuan Provincial Committee
Sichuan Spiritual Civilization Development OfceAdvanced Collective for Yibin Three-year Transportation CampaignThe Work Leading Group Ofce for Construction of Yibin as a Mega Transportation City
Assistance in relief to promote charity
Wuliangye actively developed public welfare and charity projects from the aspects of poverty relief, teaching assistantship to assist education, disaster relief and as-sistance, and assistance in the elderly and the orphans, implemented the effective linking between consolidation and exploration of poverty alleviation achievementsand rural revitalization, and promoted social harmony and economic growth.
Wuliangye assisted and subsidized the groups in difculty, helped the families, orphans, the disabled and the elderly, and promoted the harmonious development ofsociety.
Wuliangye actively participated in the construction of basic education in poverty-stricken regions, assisted students from needy families to nish their studies, devoteditself to poverty alleviation through education, and promoted the high-quality development of talent cultivation.
Poverty relief
Teaching assistantship to assist education
Wuliangye participated in the donation project of China Police Martyrs and Heroes Foundation, and supported the casual-ty pension of police martyrsCaseWuliangye donated RMB10 million, and set up "Wuliangye Love" Special Fund for Preferential Care and Assistance of Police Martyrs in China Police Martyrsand Heroes Foundation, specially used to condole, assist and rescue police martyrs and heroes with outstanding performance in the process of maintainingsocial security and stability and the safety of people's lives and property, as well as policemen who sacriced and got disabled with extreme poverty and theirfamilies, so as to contribute its strength as a state-owned enterprise to the casualty pension of police martyrs.
· Wuliangye strengthened the construction of grass-roots Party organizations:
It selected ve cadres stationed in the village to serve as Depu-ty Secretary of Party Committee of the countryside and town, and First Secretary stationed in the village respectively, focused on strengthening the construc-tion of Party organizations, and publicized the policies of the Party and policies of beneting farmers and the people in a long term through on-site lecturesby Party members, on-site listening by the masses and on-site answers by cadres, etc.· Wuliangye strengthened the collective economic organization construction:
It continued to play the capital leverage effect of the specialindustrial funds donated to Litang County in the early stage, continued to leverage nearly RMB1 million to develop collective economy in 2021, elevatedthe anti-risk ability of collective economy, improved the agriculture linking mechanism, and ensured the stable earnings of farmers, driving the industry toincrease the average annual earnings exceeding RMB5,000 for more than 5,000 farmers and herdsmen in 4 villages.
Wuliangye strengthened the construction of grass-roots organizationsto signicantly improve the e?ciency of rural governance
· Wuliangye improved basic education level:
It donated RMB200 million, mainly used to subsidize basic education promotion projects of 10 urbanand rural areas in 4 central urban districts of Sanjiang New District, Cuiping District, Nanxi District and Xuzhou District in Yibin; donated RMB120,000 worthof schoolbags, books, laptops and other educational and teaching materials to the Central School of Mula Town by means of visiting and discussing as wellas on-the-spot investigation.· Wuliangye continued to do a good job in love education program:
It delivered RMB100,000 grants to 20 college students in Litang County withthe standard of RMB5,000 for the fourth consecutive year; provided nancial aid to seven students in difculty in Hero Village, Qingping Yi Nationality Town,Pingshan County with the standard of RMB2,000 per person; organized the cadres in the village to hand over 300 sets of "love education packages" to thestudents in Wuliangye Hope Primary School in Xingwen County and Jinping Town Central Primary School in Pingshan County.
Education assistance with love and enthusiasm for more solidsupport to regional talents
· Wuliangye prepared and published the rst targeted poverty alleviation report.· Wuliangye made elaborately and exhibited assistance feature lms.· Wuliangye widely promoted foreign media publicity.
Wuliangye enriched and expanded publicity carriers to enable thesocial assistance atmosphere to become increasingly strong
· Wuliangye activated the vitality of its domestic sales:
It purchased tens of categories of agricultural special products in Litang County, PingshanCounty and Xingwen County by means of normalized purchasing instead of donating, centralized procurement for important solar terms, pre-purchase ordersin canteen, and launch of "Wuliangye Family" APP, etc., with the procurement amount of more than RMB12.6 million.· Wuliangye explored the export channels of products:
It assisted agricultural special products such as mushrooms and Auricularia auricula inLitang County, etc, in exploring online and ofine consumption markets by means of holding special sales exhibitions for agricultural special products, orga-nizing the assisted products to participate in large-scale agricultural theme activities such as China Agricultural Brand Annual Award Ceremony and SichuanAgricultural Expo, and strengthening the connection with product channels such as supermarkets, etc.
Wuliangye extended the consumption related assistance pathto e?ectively explore the product consumption markets
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Wuliangye participated in the kindergarten construction project in the central urban region of Yibin city to assist develop-ment of basic education in urban and rural regions of Yibin
Wuliangye subsidized the construction project of football playground in Bowangshan No. 2 Kindergarten in XingwenCounty to support the development of sportsCaseCaseWuliangye made nancial assistance of RMB200 million, mainly used to subsidize the construction of ten kindergartens in four central urban areas of Yibin,including Lizhuang, shaping, Baishawan and other urban-rural combination regions of Yibin, so as to accelerate basic construction of a public service systemof pre-school education with wide coverage, basic guarantee and quality in urban and rural regions, assisting the long-term development of basic education inurban and rural regions of Yibin. The overall building area of the kindergarten project covers 43,941 sqm. After completion, there will be 3,510 new children'sdegrees added, providing a strong guarantee for the development of basic education in urban and rural regions of Yibin.
Wuliangye donated RMB2 million to subsidize the construction project of football playground in Bowangshan No. 2 Kindergarten in Xingwen County. In Sep-tember 2021, the football eld was put into use smoothly with a total area of 4,956 sqm and a standard of seven-person system, which solved the problemof the shortage of sports ground for more than 1,600 students in Yanyang Primary School, open to the public for free during holidays, strongly supporting thedevelopment of education and sports in Xingwen County.
Donation for education assistance and foundation ceremony of kindergarten building project in central urban region of Yibin
The football eld of Bowangshan No. 2 Kindergarten was put into useWuliangye participated in the acrobatic education-based poverty alleviation project in Yibin to set up the patriotism ofteenagersCase
Wuliangye moved into the base of acrobatic education-based poverty alleviation project in Yibin, and carried out a learning project of Party history for acro-batic teenagers. After the learning, the staff from Wuliangye Charitable Foundation gave children books, stationery and other articles for study and daily use.Wuliangye told stories about the Party, revolution and heroes in a pleasant, interesting and funny way, and deeply planted the emotion of loving the Party, thecountry and socialism, guiding teenagers to follow words of the Party and move forward with the Party.
Education propaganda of history learning of the Party
Wuliangye participated in the project of Provincial Poverty Relief Fund in Yibin to escort students in di?culty with love
Wuliangye set up special funds of Teaching Assistantship to Assist Education, thus balancing the development of educa-tion and the building of teaching sta?
Case
Case
Wuliangye donated RMB1 million to subsidize public welfare activities of Provincial Poverty Relief Fund to sponsor education in Yibin from year 2021 to 2023to escort students in difculty with love. Wuliangye had carried forward the ne tradition of the Chinese nation featured by helping the poor and fostering virtuethrough moral education, further expanded the scale of public welfare activities of Provincial Poverty Relief Fund to sponsor education, and broadened the cov-erage of assisting poor college students.
Wuliangye donated RMB10 million to set up a special fund of Teaching Assistantship to Assist Education in Sichuan Education Foundation to reward modelteachers who had made outstanding achievements in education, subsidize excellent teachers who had difculties in family life due to special reasons such asillness and poverty, and actively create a social atmosphere of respecting teachers and valuing education, thus balancing the development of education andthe building of teaching staff, as well as improving the material conditions of rural education and characteristic education.
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATIONABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTSWuliangye set up the project of Friends of Tsinghua-Yibin Scholarship for Young Talents to promote talent training
Wuliangye supported COVID-19 prevention and control in Nanxi District to assist in the ghting against the pandemic inYibin
Case
Case
Wuliangye donated RMB600,000 to establish Friends of Tsinghua-Yibin Scholarship for Young Talents. From 2021 to 2023, Wuliangye appropriatesRMB200,000 to Tsinghua University every year to support its development of education and teaching, promote the career of talent cultivation, and encouragestudents to keep forging ahead and pursue excellence.
Facing the severe situation of repeated pandemic in Nanxi District, Yibin, Wuliangye donated RMB2 million to the Red Cross in Nanxi District, Yibin, which wasspecically used to support COVID-19 control and the resumption of work and production n Nanxi District, Yibin, assisting Yibin to resolutely win the blockingand protracted war of COVID-19 control.
Wuliangye went to the front line of disaster relief, actively participated in disaster relief, provided strong support for the resumption of work and production in disas-ter-affected areas, and assisted needy families and people in special poverty caused by natural disasters, so as to promote social harmony and economic stability.
Caring about the elderly with full love, Wuliangye donated RMB700,000, used to support the rst art exhibition of the elderly in Sichuan, contributing to the undertakingof assisting the elderly and the orphans. The works in the exhibition reected the fruitful achievements made by all fronts since the founding of the Communist Partyfor 100 years, the founding of the People's Republic of China for 72 years, the reform and opening up, as well as the 18th National Congress of the Communist Partyof China. It successively made itinerant exhibitions in Yibin and Chengdu, attracting more than 20,000 old comrades to attend the exhibition, promoting the develop-ment of art career and even cultural career related to the elderly in the whole province, enriching the life of the elderly, and building a positive and good social environ-ment through calligraphy creation.Disaster relief
Wuliangye assisted the elderly and the orphans
Wuliangye participated in ood ghting and disaster relief in Henan to support local ood control and disaster relief
Case
In July 2021, many regions in Henan suffered from heavy rain. Wuliangye donated RMB60 million to support ood ghting and disaster relief in Henan. At thebeginning of August, 8 vehicles fully loaded with Wuliangye donated materials for ood ghting and disaster relief such as epidemic masks, medicines andprotective clothing rushed to disaster areas in Henan. Through the arrangement of Henan Charity Federation, they completed the delivery of donated materialsin Zhengzhou, Kaifeng, Hebi and other places, providing strong support for the ood control and disaster relief in Henan. On 18 October, Henan Charity Feder-ation granted Wuliangye with Outstanding Contribution Award in Charitable Donation for Flood Fighting and Disaster Relief in Henan.
Assistance in ood relief materials in Henan
Volunteer services for a harmonious society buildingWith the aim of contributing to the enterprise and serving the society, the Youth League Committee of the Company organized young volunteers to carry out a seriesof thematic volunteer services, including assistance in COVID-19 control, environment protection, serving the community, respecting the old and loving the young,civilized persuasion, and venue volunteer services, so as to assist in building a harmonious society.
A total of more than 340 volunteer services were organized and carried out throughout the year, with staff volunteers of2,898 participating and the service duration of 17,118 hours in total.
The voluntary service project of Wuliangye Love Action was rated as Excellent Voluntary Service Project by Yibin Spiritual CivilizationDevelopment Ofce.
Number of activities: 164Service duration:
6,576Number of participants:
Number of activities: 100Service duration:
6,163.5Number of participants:
1,503
Number of activities: 24Service duration:
Number of participants:
Number of activities: 57Service duration:
3,946.5Number of participants:
Volunteer service activities organized and conducted in 2021
2021Volunteer ServiceActivitiesCuipingMountainCivilized per-suasion
12·18Volunteerservice
Warm winter
action
Learning fromLei Feng
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WULIANGYE YIBIN CO., LTD.ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATION
SOCIETY · EXTENSIVE BROTHERHOODTHROUGH ANCIENT AND MODERN CULTIVATION
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONOREDBRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGH
ANCIENT AND MODERN EFFORTS
Support the military to promote the military-civilian integrationWuliangye actively fullled its social responsibilities to support national defense and military construction, and vigorously promoted the in-depth development ofmilitary-civilian integration, solidly carried out the work to support the military and families, attached great importance to the work for retired military personnel, safe-guarded the legitimate rights and interests of the military and families, implemented the idea of strengthening the military in the new era, and created a new situationof militia building.
Volunteer services for Wuliangye 12·18 Annual Convention
Wuliangye sent the Party's warmth to veterans
Activities caring for left-behind children
Sympathy to the retired military personnel on Army Day
Civilized persuasion actions in Cuiping MountainHome cleaning into community
Wuliangye held a symposium of heart-warming action with the theme of Bringing the Warmth of the Party to the Hearts ofVeterans to care for retired veterans
Visiting veterans, families of active servicemen, and other subjects enjoying preferential treatment
Wuliangye conducted visit and sympathy activities to the stationed troops, and cared for the military personnel
Case
Case
Case
On the eve of the Centennial birthday of the Party, Wuliangye invited volunteers to resist U.S. Aggression and Aid Korea, the retired military personnel who hadbeen awarded Citation for Merit, Class II or higher, and disabled military personnel to the Company, viewed development and construction of the Company,observed the drills of military subjects for basic militia of the Company, held a symposium of heart-warming action with the theme of Bringing the Warmth of theParty to the Hearts of Veterans, and listened to veterans telling their own experiences of war history, touching deeds and participation in the process of devel-opment and growth of the Company. The Company delivered sympathy funds and items to 18 veterans attending the meeting, totaling RMB54,000.
Taking major festivals as an opportunity, Wuliangye conducted discussion and sympathy activities for the retired military personnel and the families of activeservicemen in the Company to convey its care, sympathy and greetings. During the Reporting Period, the Company conducted sympathy activities to 4,246people of retired military personnel on the job, military personnel who left the Company or get retired and the families of active servicemen, and delivered sym-pathy funds and items, totaling RMB2,681,600.
Taking major festivals such as the Spring Festival and the Army Day as an opportunity, Wuliangye conducted visit and sympathy activities to the stationedtroops. Combined with COVID-19 control requirements, Wuliangye carried out the visits and discussions with the theme of Co-construction and Mutual Integra-tion Development of the Military and Enterprises to the stationed troops, such as military divisions, People's Armed Forces Department of Cuiping District, ArmyAviation, the PLA Rocket Force, and the armed police detachment, recognized the actual difculties in the life and training of the stationed troops, and quicklyorganized targeted sympathy materials to the stationed troops. During the Amy Day, the Company visited eight stationed troops and emergency forces, andheld three symposiums, delivering sympathy funds and items such as air conditioners, cool drinks and training equipment, totaling RMB350,000.
Wuliangye carried out the construction of backbone militia of the Company:
It invested RMB1,370,800 funds in total in military equipment andtraining of the backbone militia through the whole year. The backbone militia of the Company had participated in emergency tasks such as earthquake relief,ood control and emergency rescue, re ghting and rescue, and emergency response for many times.Wuliangye built the service station into a home for retired military personnel:
Considering handling practical work, paying attention to practicalresults and solving difculties as important principles of the service station work, the Company continuously carried out in-depth information collection, assis-tance in solving difculties of the poor, and visit and sympathy activities, and solidly conducted visiting and reception work.
Visit for caring scheme:
The Company regularly carried out visit and sympathy activities for the families of retired military personnel and active service-men, for example, the retired military personnel who were in difculty, and left the post for recuperation due to serious illness, and the stationed military troops.
Caring scheme:
The Company delivered sympathy funds and items to the retired military personnel, the families of active servicemen and other specialcare objects, totaling RMB2,681,600, and visited the stationed military troops during major festivals, and distributed sympathy materials according to the actualneeds of the military.
National defense construction
Service station construction
Caring scheme
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ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
Performance
PERFORMANCEWULIANGYE YIBIN CO., LTD.
IndicatorUnit2021Total assetsRMB million135,621Operating revenueRMB million66,209Taxes paidRMB million25,451Total protRMB million32,450EPS RMB 6.023Total cash dividends for 2020RMB million 10,015
IndicatorUnit2021Input into rural revitalizationRMB'00 million6.81Total donationsRMB'0,0009,915.98Volunteer eventsTimes345
IndicatorUnit2021Total employees25,803Employment contract signing rate%100Social insurance coverage rate%100Proportion of female managers%20Medical examination coverage rate%78.16Input into employee trainingRMB'0,000536.49Input into assistance for employees in
need
RMB'0,000161.31
Economic PerformanceSocial Performance
Employee Performance
IndicatorUnit2021Chemical oxygen demand emissionsTon82Ammonia nitrogen emissionsTon2Exhaust gas emissionsBillion m?1.6Sulfur dioxide emissionsTon0.8Nitrogen oxide emissionsTon104Total consumption of industrial energy
resources
10,000 tce22.88Carbon dioxide emissions10,000 tons51.96
Environmental Performance
119120
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE
THROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
Future Outlook
Throughout the challenging 2021, Wuliangye implemented the decisions and arrangements made by the CPC Central Committee, the State Coun-cil, the CPC Sichuan Provincial Committee, the People's Government of Sichuan Province, the CPC Yibin Committee, and the People's Govern-ment of Yibin City, promoted business development and social responsibilities in parallel, and nally achieved new steady development progress.In an important period of window and strategic opportunities for a new round of high-quality development, Wuliangye will continue to follow theleadership of Party building and work hard with partners. Additionally, it will value stability, adhere to the general principle of seeking progress whilemaintaining stability, seize each opportunity, and pursue innovations while carrying on the essence. By fully building an "ecological, high-quality,cultural, digital, and honest" brand, Wuliangye will effectively fulll its mission as a state-owned enterprise and exercise its political, economic, andsocial responsibility comprehensively.
· Reinforce full and strict governance over the Party, consistently promote the work of "Learning from Cases to Facilitate Im-provements", and improve the system for combating corruption and upholding integrity.· Optimize the setup of the Party organizations by classication and level in a scientic and dynamic manner to ensure that theParty organizations that are set up are "essential and practical".· Give full play to the exemplary role of Party members and enhance the building of the cadre team.· Optimize the corporate governance structure and management mechanism and improve the capability of the General Meet-ings of Shareholders, the Board of Directors, and the Supervisory Board in independent operation and mutual supervision.· Consistently improve the internal control system and the risk control system and incorporate ESG-related risks into the corpo-rate risk management.· Strengthen the communication with investors, protect the interests of minority investors, and be committed to maximizing thelegitimate rights and interests of the Company, shareholders, and other stakeholders.· Intensify the building and output of brand culture and tell the stories concerning the quality, history, and public welfare ofWuliangye in a systematic manner.· Insist on the combination of characteristics and fashion, enrich the cultural customized product system, improve the proce-dures for product research and development, and develop the market of liquor with a low alcohol content to consistently meetthe consumer demands in the new era.· Insist on both scale and value and consistently upgrade the quality of other Baijiu series to make the "excellent quality withinreach" become the core value idea of Wuliang NongXiang series Baijiu that consumers are familiar with.· Consistently encourage responsible marketing to protect the rights and interests from being infringed.· Build an industry-leading digital marketing system, digital management system, and digital business system to create moreconvenient and better experiences for consumers with technologies.· Carry out periodic consumer satisfaction surveys and organize customer service training activities to continuously improve
the quality of the Company's consumer services.
· Persist with traditional production techniques, constantly improve the cultural identity of producers, improve related criteriaand regulations, and conduct training in core brewing techniques.· Carry out the industry-university-research institute research and innovation incentive work to empower future developmentwith innovation.Quality control
· Strengthen the quality control mechanism and implement whole-process quality inspection and control to ensure food safety.· Improve food safety criteria and promote the research and application of the methods for assessing food safety risks.· Upgrade and build the largest brewing base for pure-grain solid fermentation in the industry and constantly increase the fa-mous liquor rate of Wuliangye.EmployeeRecruitmentandDevelopment
· Develop a comprehensive professional talent training system and incentive mechanism to help employees improve their tech-niques and career development.· Consistently improve the Company's welfare system and enhance employees' well-being and sense of belonging.· Promote and carry out system improvement around two major responsibility issues, namely production safety and occupa-tional health, and adopt strict pandemic control measures to protect employees' health and safety.Value chainsupport
· Optimize the supplier management system, protect the legitimate rights and interests of suppliers, insist on transparent pro-curement, and strengthen communication and training to empower suppliers.· Prioritize dealer training and assessment, strengthen communication and training, update and improve dealer managementpolicies, and solve dealers' problems to promote win-win development between the Company and dealers.Commonindustrialprogress
· Proactively participate in exchange activities in the industry and the assistance campaigns of liquor producers to contributethe strength of Wuliangye to high-quality development of the industry.· Promote the criteria formulation by exploring more detailed, standard, scientic, and comprehensive industry criteria.
PracticingEcologicalConservation
· Fully build ecological parks and insist on providing ecological products to realize ecological production comprehensively.· Strictly comply with emission regulations and ensure the compliant disposal of various waste to fully develop a circular econ-omy and become an energy-saving, environmentally-friendly liquor producer.ConstructionZero-carbonLiquor Enter-prise
· Consistently improve the incentive system for building a "Zero-carbon Liquor Enterprise", optimize the mechanism for carbonemission management, and explore low-carbon programs.· Fully promote green and low-carbon energy and properly perform the monitoring and disclosure of energy consumption datato achieve omni-port control and omni-channel management and carbon neutrality.Devotion toPublic welfareand charity
·Give attention to vulnerable groups and implement public welfare projects concerning education, disaster relief, and love forthe elderly and orphans.· Consistently fulll the social responsibility for supporting national defense and military development, carry out concrete workto support the army and give preferential treatment to families of servicemen, and deepen the civil-military integration.ServicesRuralRevitalization
·Mainly focus on industrial support, instruct local farmers in planting special grain for brewing, and continue to improve thedevelopment of assisted regions and people's life.· Implement the targeted assistance mechanism, improve the organization system to steer the assistance work, and consoli-date the achievements of poverty alleviation.
Strengthening
green man-agement
· Build an energy, environment, and greenhouse gas management system that operates efciently and consistently improvemanagement regulations.
Pursuing in-novation whilecarrying onthe essence
Contribute to common
prosperity
Develop the ecological blueprintCo-create premium productsConsolidate the development foundation
FUTURE OUTLOOKWULIANGYE YIBIN CO., LTD.
Party Building
CorporateGovernance
Brand
Building
Consumers
Services
121122
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
Benchmarks for Indicators
BENCHMARKS FOR INDICATORSWULIANGYE YIBIN CO., LTD.
Report contentCASS-CSR 4.0
About This ReportP1.2/A5A Message from the Senior ManagementP2.1/P2.2
About WuliangyeP4.1/P4.3/P4.4/A3Inheritance · Time-honored Brand that
Bears "Red" Heritages
Party BuildingM1.1Celebration of the 100th Anniversary ofthe Founding of the Communist Party of
China
M1.1
Governance · Cellar Prosperity throughAncient and Modern Governance
Corporate GovernanceM1.1Risk Control and ComplianceM1.1/S1.1Combating Corruption and Upholding
Integrity
M1.3Digital Transformation and UpgradeM2.4Corporate Social Responsibility Man-
agement
G2.1/G2.2/G2.3G2.4/G6.1
Technique · Premium Products throughAncient and Modern Efforts
Craftsmanship-embedded InnovationM2.4/M2.6Technique InheritanceM2.2Quality controlM2.2/M2.3Culture InheritanceG6.3/G2.4
Report contentCASS-CSR 4.0
Environment · Preservation of Rivers inTheir Natural State through Ancient and
Modern Cultivation
Environmental ManagementE1.1Zero-carbon Liquor EnterpriseE1.3/E1.9/E2.23/E2.24Ecological ConservationE2.11/E2.13/E2.17/E3.3Green logisticsE2.21
Society · Extensive Brotherhood throughAncient and Modern Cultivation
Supplier ManagementM3.15/M3.1/M3.2Distributor SupportM2.9Consumer Services
M2.8/M2.9/M2.10/M2.13/M2.14/M2.15/M2.16/
M2.18Employee Recruitment and Develop-
ment
S2.1/S2.2/S2.4/S2.8/S2.10/S2.11/S2.12/S2.14/S2.17/S2.18/S3.1/S3.3/S3.5/S3.6Investor Relation ManagementM1.4/M1.5Common industrial progressM3.6Rural RevitalizationS4.12Public welfare and charityS4.1/S4.6/S4.10/S4.11PerformanceS1.5/S2.3/S4.8/S4.13/E2.25/S2.5Future OutlookA1Benchmarks for IndicatorsA5Suggestions and FeedbackA6
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ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGHANCIENT AND MODERN GOVERNANCE
ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATETHROUGH ANCIENT AND MODERN CULTIVATIONTECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
SOCIETY · EXTENSIVE BROTHERHOOD THROUGHANCIENT AND MODERN CULTIVATION
WULIANGYE YIBIN CO., LTD.
Suggestions and Feedback
Dear readers:
Thank you for reading The 2021 Corporate Social Responsibility Report of Wuliangye Yibin Co., Ltd. to provide you and other stakeholders withmore professional and valuable CSR information. We hope you can complete relevant questions in the feedback form. With your help, we can fur-ther improve our social responsibility and sustainable development management in the future.
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Address: 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, ChinaPostal code: 644007Telephone: (0831) 3567000, 3566937, and 3566858Fax: (0831) 3555958E-mail: 000858-wly@sohu.comWebsite: http://www.wuliangye.com.cn
SUGGESTIONS AND FEEDBACKWULIANGYE YIBIN CO., LTD.
ABOUT WULIANGYE
SPECIAL SUBJECT: INHERITANCE · TIME-HONORED
BRAND THAT BEARS "RED" HERITAGES
GOVERNANCE · CELLAR PROSPERITY THROUGH
ANCIENT AND MODERN GOVERNANCE
TECHNIQUE · PREMIUM PRODUCTS THROUGHANCIENT AND MODERN EFFORTS
Address: 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, ChinaPostal code: 644007Telephone: (0831) 3567000, 3566937, and 3566858Fax: (0831) 3555958E-mail: 000858-wly@sohu.comWebsite: http://www.wuliangye.com.cn
Website of WuliangyeOfcial WeChat account of
Wuliangye
Yibin · China