Wuliangye Yibin Co., Ltd.
Annual Report 2022
Chairman of the Board: Zeng Congqin
29 April 2023
Part I Important Notes, Table of Contents and Definitions
1. The Board of Directors (or the ―Board‖), the Supervisory Committee as well as thedirectors, supervisors and senior management of Wuliangye Yibin Co., Ltd. (hereinafter referred toas the ―Company‖) hereby guarantee that the contents of this Report are true, accurate andcomplete and free of any misrepresentations, misleading statements or material omissions, andcollectively and individually accept legal responsibility for such contents.
2. Zeng Congqin, the Company’s legal representative, Xie Zhiping, the Company’s ChiefFinancial Officer, and Yang Wentian, head of the Company’s accounting department, herebyguarantee that the financial statements carried in this Report are true, accurate and complete.
3. 11 directors were supposed to attend the board meeting for the review of this Report. Sevenof them were present at the meeting in person while Mr. Xiao Hao, Mr. Xie Zhihua, Mr. HouShuiping, and Mr. Luo Huawei voted by way of telecommunication for they were unable to bepresent due to work reasons.
4. Any future plans, development strategies and other forward-looking statements mentionedin this Report shall not be considered as promises to investors for the reason of their uncertainty.Investors are kindly advised to invest wisely. The Company has disclosed in this Report thepossible risks. And investors are reminded to exercise caution when making investment decisions.
5. The Board of Directors has approved a final cash dividend of RMB37.82 (tax inclusive)per 10 shares to shareholders based on the total 3,881,608,005 shares held by them, with no bonusissue from either profit or capital reserves.
6. This Report has been prepared in Chinese and translated into English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Management Discussion and Analysis ...... 10
Part IV Corporate Governance ...... 32
Part V Environmental and Social Responsibility ...... 50
Part VI Significant Events ...... 56
Part VII Share Changes and Shareholder Information ...... 60
Part VIII Preference Shares ...... 66
Part IX Bonds ...... 66
Part X Financial Statements ...... 67
Documents Available for Reference
The following documents are available for shareholders at the relevant department of theCompany:
1. The financial statements that have been signed and stamped by the legal representative, theChief Financial Officer, and the head of the accounting department.
2. The original copy of the Independent Auditor’s Report that has been stamped by the CPAfirm, as well as signed and stamped by the relevant certified public accountants.
3. The originals of all the Company’s documents and announcements that were disclosed onChina Securities Journal, Shanghai Securities News and Securities Times during the ReportingPeriod.
4. The Annual Report of the Company.
Definitions
Term | refers to | Definitions |
The ―Company‖, ―Wuliangye‖, ―WLY‖, or ―we‖ | refers to | Wuliangye Yibin Co., Ltd. |
SASAC Yibin | refers to | The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin City |
Yibin Development Group | refers to | Yibin Development Holding Group Co., Ltd. |
Wuliangye Group | refers to | Sichuan Yibin Wuliangye Group Co., Ltd. |
Wuliang NongXiang | refers to | Sichuan Wuliangye NongXiang Baijiu Co., Ltd. |
Push Group | refers to | Sichuan Yibin Push Group Co., Ltd. |
Global Group | refers to | Sichuan Yibin Global Group Co., Ltd. |
Anji Logistic Group | refers to | Anji Logistic Group Co., Ltd. Sichuan |
Wuliangye Group Finance | refers to | Sichuan Yibin Wuliangye Group Finance Co., Ltd. |
Wuliangye Group I&E | refers to | Yibin Wuliangye Group I&E Co., Ltd. |
Creart | refers to | Yibin Wuliangye Creart Co., Ltd. |
Wuliangye New Retail | refers to | Sichuan Wuliangye New Retail Management Co., Ltd. |
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name | Wuliangye | Stock code | 000858 |
Stock exchange | Shenzhen Stock Exchange | ||
Company name in Chinese | 宜宾五粮液股份有限公司 | ||
Abbr. | 五粮液 | ||
Company name in English (if any) | WULIANGYE YIBIN CO.,LTD. | ||
Abbr. (if any) | WLY | ||
Legal representative | Zeng Congqin | ||
Registered address | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China | ||
Zip code | 644007 | ||
Past changes of registered address | N/A | ||
Office address | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China | ||
Zip code | 644007 | ||
Company website | http://www.wuliangye.com.cn | ||
Email address | 000858-wly@sohu.com |
II Contact Information
Board Secretary | Securities Representative | |
Name | Jiang Lin | Huang Hui |
Office address | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China | 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China |
Tel. | (0831)3567000 | (0831)3567000 |
Fax | (0831)3555958 | (0831)3555958 |
Email address | 000858-wly@sohu.com | 000858-wly@sohu.com |
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed | The website of the Shenzhen Stock Exchange (www.szse.cn) |
Media and website where this Report is disclosed | China Securities Journal, Shanghai Securities News, Securities Times, and http://www.cninfo.com.cn |
Place where this Report is lodged | The Company’s Board Office |
IV Change to Company Registered Information
Unified social credit code | 91511500MA62A0WM8P |
Changes to the principal activities of the Company since its listing (if any) | No change during the Reporting Period |
Every change of controlling shareholder since incorporation (if any) | No change during the Reporting Period |
V Other InformationThe independent auditor appointed by the Company:
Name of the independent auditor | Sichuan Huaxin (Group) CPA (LLP) |
Office address | 28/F, South Jinmaolidu, 18 Ximianqiao Street, Chengdu City, Sichuan Province, China |
Accountants writing signatures | Li Wulin, Ye Juan, and Luo Guiqiu |
The independent sponsor appointed by the Company to exercise constant supervision over the Company inthe Reporting Period:
? Applicable □ Not applicable
Name of sponsor | Office address | Representative | Supervision period |
Guotai Junan Securities Co., Ltd. | 618 Shangcheng Road, China (Shanghai) Pilot Free Trade Zone | Cai Hu, and Kang Xin | 1 January 2022-31 December 2022 |
The independent financial advisor appointed by the Company to exercise constant supervision over theCompany in the Reporting Period:
□ Applicable ? Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ? No
2022 | 2021 | 2022-over-2021 change (%) | 2020 | |
Operating revenue (RMB) | 73,968,640,704.54 | 66,209,053,612.11 | 11.72% | 57,321,059,453.15 |
Net profit attributable to the listed company’s shareholders (RMB) | 26,690,661,397.42 | 23,377,074,353.40 | 14.17% | 19,954,809,594.52 |
Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 26,662,736,708.98 | 23,327,729,257.82 | 14.30% | 19,994,943,929.15 |
Net cash generated from/used in operating activities (RMB) | 24,431,136,261.48 | 26,774,941,873.05 | -8.75% | 14,698,327,593.21 |
Basic earnings per share (RMB/share) | 6.876 | 6.023 | 14.16% | 5.141 |
Diluted earnings per share (RMB/share) | 6.876 | 6.023 | 14.16% | 5.141 |
Weighted average return on equity (%) | 25.28% | 25.30% | Down by 0.02 percentage point | 24.94% |
31 December 2022 | 31 December 2021 | Change of 31 December 2022 over 31 December 2021 (%) | 31 December 2020 | |
Total assets (RMB) | 152,714,727,880.22 | 135,620,812,221.13 | 12.60% | 113,893,139,013.72 |
Equity attributable to the listed company’s shareholders (RMB) | 114,025,058,788.17 | 99,068,498,346.24 | 15.10% | 85,705,972,645.74 |
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before andafter exceptional gains and losses was negative for the last three accounting years, or the latest independentauditor’s report indicated that there was uncertainty about the continuity of the Company’s operations.
□ Yes ? No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before andafter exceptional gains and losses was negative.
□ Yes ? No
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable ? Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 | Q2 | Q3 | Q4 | |
Operating revenue | 27,548,160,168.43 | 13,674,217,414.68 | 14,557,309,237.20 | 18,188,953,884.23 |
Net profit attributable to the listed company’s shareholders | 10,822,866,097.02 | 4,276,070,476.74 | 4,890,398,775.10 | 6,701,326,048.56 |
Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 10,841,889,446.84 | 4,268,700,205.22 | 4,908,714,059.89 | 6,643,432,997.03 |
Net cash generated from/used in operating activities | -3,401,025,898.78 | 5,288,100,539.70 | 8,898,402,607.19 | 13,645,659,013.37 |
Indicate whether any of the quarterly financial data in the table above or their summations differs materiallyfrom what have been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses
? Applicable □ Not applicable
Unit: RMB
Item | 2022 | 2021 | 2020 | Note |
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 2,282,237.38 | -23,622,995.51 | -5,064,647.92 | |
Government grants through profit or loss (exclusive of government grants consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per governmental policies or standards) | 100,421,839.81 | 184,126,377.62 | 100,407,690.85 | |
Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 442,730.22 | 2,144,596.61 | 2,602,571.31 | |
Non-operating income and expense other than the above | -62,917,173.08 | -80,306,712.64 | -141,782,777.02 | |
Less: Income tax effects | 8,377,774.30 | 21,010,672.65 | -15,373,976.81 | |
Non-controlling interests effects (net of tax) | 3,927,171.59 | 11,985,497.85 | 11,671,148.66 | |
Total | 27,924,688.44 | 49,345,095.58 | -40,134,334.63 | -- |
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Part III Management Discussion and Analysis
I Industry Overview for the Reporting PeriodThe Baijiu industry remains in long-term structural prosperity. It continued to see structural growth in 2022.In the year, the number of Baijiu producers above the designated size nationwide was 963, a decrease of twoover last year; the production volume of Baijiu stood at 6.712 million kiloliters, down 5.6% year on year; thesales revenue was RMB662.65 billion, representing a year-on-year increase of 9.6%; and the profit before taxgrew 29.4% on a year-on-year basis to RMB220.17 billion. The market has become more concentrated towardsstrong brands, top producers, and major regions of production. In 2022, the Company achieved operatingrevenue of RMB73.969 billion, up 11.72% year on year, and a profit before tax of RMB37.104 billion, up 14.34%year on year.II Principal Operations of the Company during the Reporting Period
(I) OverviewThe Company is principally engaged in Baijiu production and sales. According to the Guidelines for theIndustry Classification of Listed Companies (revised in 2012) issued by the China Securities RegulatoryCommission, the Baijiu industry falls into the category of the "liquor & wine, beverage, and refined teaproduction industry" (C15). No change occurred to the principal operations of the Company during theReporting Period. "Wuliangye", the primary product of the Company, is a classic strong-flavor Chinese Baijiu.Additionally, the Company has developed, based on different production techniques, ―Wuliang NongXiang‖products such as Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, and MianrouJianzhuang with complete categories and unique tastes to meet the diverse needs of different consumers.(II) Brand Operation
1. Wuliangye-branded Baijiu Products
In 2022, the Company took solid steps to drive high-quality marketing. It continued to increase consumercultivation efforts, enhance Wuliangye's market position, meet the consumer needs arising in the new era, andbuild a shared future of Wuliangye. In doing so, the marketing of the Wuliangye brand has been brought to anew level.
Firstly, the Company continued to optimise its product system and steadily improved its productstrength. It refined the development processes for standard and customised products, the management standardsand mechanisms for new product development, and the management standards for the elimination of Wuliangye-branded products. In addition, 23 new product series were launched, further enriching the Wuliangye-brandedproduct system.
Secondly, continuous efforts were made to better convey the culture in pursuit of a stronger brandpresence. The Company worked with high-profile platforms such as the Boao Forum for Asia, and APEC, andestablished deep cooperation with CCTV, People's Daily, Xinhua News Agency and other mainstream media todrive a stronger presence of the Wuliangye brand.
Finally, the Company continually improved its channel structure and steadily increased its strengthwith regard to channels. Through innovative methods including the star-rating at the retail end, QR code-related prizes, and policy support payments, the Company helped distributors enhance royalty at the retail end,thus strengthening the traditional retail channels. Centering around ―one focus on major customers, three high-end markets, and two platforms‖, the Company strove to establish cooperation with more major corporatecustomers by paying over 50,000 visits to enterprises in the year as part of its efforts to expand group purchasechannels. Meanwhile, it worked with Geely Auto to launch the Wuliangye Zeekr Limited Edition CustomizedBaijiu, actively exploring innovative channel cooperation models. In addition, the Wuliangye exclusive storeplatform integrated branding, consumption conversion and membership operation, entering a new stage of smartstore operation.
2. Wuliang NongXiang products
In 2022, Wuliang NongXiang continued to adhere to the strategies of "three characteristics and onerecognition", "three focuses" and key product building. Through proactive, relentless, flexible and practicalefforts, new results and breakthroughs have been achieved in high-quality development.Firstly, the product system continued to improve. A variety of products were launched to the market tomeet increasing consumer demand, including Wuliangchun Mingmenchun, Wuliang Tequ Jincai, Wuliang TequCrown, Wuliang Haoke, Wuliang NongXiang for the Year of the Rabbit, etc. Meanwhile, certain low-pricedproducts were eliminated in pursuit of a higher brand value.Secondly, the sell-through of products hit a record high. Vigorous actions were taken with regard to theQR code-related prizes for consumers, banquet promotions, etc. A double-digit growth was achieved year onyear in the participants in the ―crack a bottle, scan the code, and win a prize‖ activities.Thirdly, the brand image continued to improve. On-site publicity achieved full coverage in key markets,and online promotions reached nearly two billion participants. Wuliang Chun (Spring), and Wuliang Chun (RichFlavor) were ranked 35th and 37th on the 2022 (28th) Top 100 Most Valuable Chinese Brands, representingsignificant improvements in brand reputation.Finally, market empowerment efforts proved to be accurate and effective. Through visits, socialmeetings and regional seminars, as well as the launch of the 12 measures of "flexible and practicalempowerment", a variety of actions were taken to empower markets and serve distributors in a deeper manner topromote the sustained, high-quality and healthy development of markets.(III) Major Sales Models of the CompanyDistribution model: This includes the traditional channel operator model, KA marketplace, etc., mainlysold offline.Direct-to-consumer model: This includes the group purchase model, where products are sold directly togroups of consumers, the exclusive store model for the retail end and consumer groups, and the online salesmodel, where products are sold through e-commerce platforms such as Tmall and JD.(IV) Distribution Model? Applicable □ Not applicable
1. Operating Revenues, Costs of Sales and Gross Profit Margins of Different Sales Models and ProductCategories
Unit: RMB
Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue | YoY change in cost of sales | YoY change in gross profit margin |
By sales model |
Liquor products
Liquor products | 67,562,646,631.24 | 12,242,850,024.31 | 81.88% | 9.45% | 0.63% | 1.59% |
Of which: Distribution model | 40,492,386,915.69 | 8,702,257,564.41 | 78.51% | 7.19% | -1.10% | 1.80% |
Direct-to-consumer model | 27,070,259,715.55 | 3,540,592,459.90 | 86.92% | 13.00% | 5.17% | 0.97% |
By product category | ||||||
Liquor products | 67,562,646,631.24 | 12,242,850,024.31 | 81.88% | 9.45% | 0.63% | 1.59% |
Of which: Wuliangye-branded Baijiu products | 55,335,178,077.41 | 7,434,393,364.78 | 86.56% | 12.67% | 5.06% | 0.97% |
Other liquorproducts
Other liquor products | 12,227,468,553.83 | 4,808,456,659.53 | 60.67% | -3.11% | -5.53% | 1.00% |
2. Number of Distributors
Region | Number of distributors of Wuliangye-branded Baijiu products | YoY change (number) | Reason for change (more than 30%) |
East China | 691 | 129 | N/A |
South China | 468 | 57 | |
West China | 466 | 74 |
North China | 351 | 75 |
Central China | 513 | 100 |
Subtotal | 2,489 | 435 |
Region | Number of distributors of Wuliang NongXiang products | YoY change (number) |
China | 655 | 53 |
Total | 3,144 | 488 |
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiangproducts.
3. Main Settlement Methods and Dealing Methods of Distributor Customers
A distribution model is mainly used, with a "payment before delivery" settlement method. In the ReportingPeriod, the total sales revenue from the top five distributors reached RMB9.8 billion, accounting for 13.25% ofthe total sales revenue.
4. Retail Store Sales Accounting for More Than 10% of Total Sales
? Applicable □ Not applicable
Region | Number of exclusive stores at the beginning of the Reporting Period | Number of exclusive stores at the end of the Reporting Period | Reason for change (more than 30%) |
East China
East China | 411 | 443 | N/A |
South China | 273 | 292 | |
West China | 291 | 286 | |
North China | 217 | 237 | |
Central China | 353 | 372 | |
Total | 1,545 | 1,630 |
5. Online Direct-to-consumer Sales
? Applicable □ Not applicable
Product category | Platform |
Wuliangye-branded Baijiu products: | |
The 8th-generation Wuliangye | Tmall, JD, and WeChat |
Other liquor products: |
Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Wuliang Tequ, and Jianzhuang
Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tequ, and Jianzhuang | Tmall, JD, and WeChat |
Indicate whether any of the major products that accounted for more than 10% of the total operating revenuein the current period saw a 30% or greater change in its selling price compared to the prior reporting period.
□ Applicable ? Not applicable
(V) Purchase Model and Purchased Items
Unit: RMB
Purchase model | Purchased items | Amount |
Market-based purchase | Raw materials and auxiliary materials, etc. | 8,823,725,733.36 |
Market-based purchase | Packaging materials | 2,432,264,243.26 |
Market-based purchase | Energy | 515,505,433.53 |
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30%of the total purchase amount.
□ Applicable ? Not applicable
Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%year-on-year.
□ Applicable ? Not applicable
(VI) Main Production Models
The Company's Baijiu products are all produced by itself.Commissioned processing and production:
□ Applicable ? Not applicable
(VII) Production Volume and Inventory
1. Production Volume, Sales Volume and Inventory of Major Products
Product | Production volume (ton) | Sales volume (ton) | Inventory (ton) | |||
2022 | YoY change | 2022 | YoY change | 2022 | YoY change | |
Wuliangye-branded Baijiu products | 33,791 | 18.95% | 32,768 | 12.21% | 2,961 | 52.79% (note 2) |
Other liquor products | 95,537 | -40.40% (note 3) | 94,393 | -38.13% (note 3) | 20,367 | 5.95% |
Total | 129,328 | -31.47% | 127,161 | -30.04% | 23,328 | 10.24% |
Notes: 1. The liquor referred to in the table above is all commercial liquor.
2. Mainly because the Company stocked up for sales in the Spring Festival in 2023, which was ten daysearlier than last year, and the inventory base in 2021 was low. 3. Mainly because Wuliang NongXiang optimized its product mix in 2022 to focus on mid- to high-priced products; and the sales base of low-priced products in 2021 was high.
2. Finished Liquor and Semi-finished Liquor (Including Base Liquor)
Category | Inventory (ton) |
Finished liquor | 23,328 |
Semi-finished liquor (including base liquor) | 182,849 |
3. Designed, Actual and In-progress Production Capacity of Major Products by Production Entities
Major product | Designed production capacity (’0,000 tons) | Actual production capacity (’0,000 tons) | Production capacity in progress (’0,000 tons) |
Liquor | 14.2802 | 10.4316 | 6 |
Note: The liquor in the table above includes Baijiu and base fruit liquor.III Core Competitiveness Analysis
The Company has five major competitive edges that are unique and unrepeatable, which represent its corecompetitiveness.
The first is the geographical competitiveness. The unique natural environment and production techniqueshave created a unique microbial zone within the Wuliangye Distillery.
The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pitclusters dating back to the Ming and Qing dynasties, represented by Changfasheng and Lichuanyong, have beenin existence for more than 650 years, and are the earliest and largest cave-type fermentation pits in China withuninterrupted production, which have scarcity value that is unrepeatable and non-reproducible.
Quality represents the third competitive edge. The five-grain formulas, the production secrets of"growing, brewing, selecting, aging and mixing", and the unique "1366" traditional production technique that hasbeen identified as a national intangible cultural heritage have contributed to the outstanding quality of theproducts of the Company. It is the only Baijiu producer to have won four China Quality Awards.
The fourth is the brand strength. Wuliangye is a time-honored brand with a history of over a thousandyears, beginning in the Tang Dynasty, emerging in the Song Dynasty, becoming famous in the Ming Dynasty,and establishing the brandname in the Qing Dynasty. It is a symbol and leader of China’s strong-flavored Baijiu.
Finally, the consumer base. Strong-flavored Baijiu is the Baijiu category with the highest market share andthe largest consumer base. Being famous worldwide for its unique style of "lasting aroma, mellow, pleasant andsmooth taste, and harmonious, well-balanced and comprehensive flavors", Wuliangye has a wide and solidconsumer base.
IV Analysis of Principal Operations
1. Overview
During the Reporting Period, the Company adhered to the guidance of Xi Jinping’s Thought on Socialismwith Chinese Characteristics for a New Era, thoroughly implemented the key spirit and instructions of the 20th
National Congress of the Communist Party of China and General Secretary Xi Jinping's visit to Sichuan andYibin, and followed the general principle of "staying politically aware, driving development, improving people'slivelihood, ensuring safety, and delivering first-class performance". In accordance with the general requirementsof "focusing on stability, seeking progress in stability, and making more contributions", the Company adhered to"focusing on and strengthening the principal operations", and continued to shore up weak spots, developstrengths, rise to challenges and forge ahead against headwinds. As a result, it performed well in both stablecurrent year growth and long-term growth planning, and delivered improvements in both financial results anddevelopment quality. In 2022, the Company achieved operating revenue of RMB73.969 billion, up 11.72% yearon year, and a net profit attributable to its shareholders of RMB26.691 billion, up 14.17% year on year. Thisrepresented a new stage for the development of the Company. Wuliangye's finished Baijiu production and salesgrew steadily, matching the expansion in the high-end markets. The brand value has increased by 12.08% toRMB364.619 billion on top of five consecutive years of double-digit growth. For that, it becomes the only Baijiuproducer in China to have won the ―2022 Best China Brand‖.Meanwhile, significant progress has been made in product mix, cultural development, branding, marketingreform, technological innovation and long-term planning.Firstly, the product mix continued to improve. In the year, 12 brands were eliminated; the packagingdesign of the 8
th-generation Wuliangye and low-alcohol Wuliangye products was refined; and a variety ofcultural Baijiu products including Harmonious China, Lucky Panda, and Year of the Rabbit Baijiu were launched,which are all well-received among consumers. As for the Wuliang NongXiang products, the Company adhered to―three focuses‖, with Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, Jianzhuang andother key national strategic products and regional brands all seeing a stronger presence.Secondly, cultural development efforts produced a wide range of results. The scenic spot of Wuliangyehas been selected as one of the first scenic spots as national intangible cultural heritages and a nationaldemonstration base for industrial tourism. The international proposal collection for the Chinese Baijiu culturalsanctuary and Yuanshui area was completed, and the construction of the 501 ancient fermentation pits-ChineseBaijiu cultural sanctuary and the gateway for world-class Baijiu producers was in full swing. Additionally, theWuliangye old fermentation pit site was approved as the only restoration project in the Baijiu category for the2022 national cultural relic preservation campaign.
Thirdly, impressive results have been achieved in branding. The new brand concept of ―Aroma of theNation, Harmony of Wuliangye, Masterpiece of Chinese Baijiu‖ has been established, and a number of culturalIPs have been created, including the "Harmony Cultural Festival", "1218 Super Fan Festival" and "RoseWedding Ceremony". 10 new Wuliangye Cultural Experience Halls have been established in Shanghai,Guangdong and other key and high-end markets. Joining hands with high-end platforms, the Companyparticipated in a deep manner in top international and domestic political and business events such as APEC,Boao Forum for Asia and the China International Import Expo. Meanwhile, the Company stepped up itscooperation with CCTV, People's Daily, Xinhua News Agency and other mainstream media to effectively tell thebrand, cultural and production technique stories of Wuliangye, further improving the reputation of the brand.Fourthly, marketing reform carried on in a deeper manner. A marketing strategy of "headquartersresponsible for overall marketing and regional marketing divisions responsible for regional marketing" has beenadopted, with 21 regional marketing divisions adjusted to 26, enabling better responsiveness to market changes,more accurate strategies, and more thoughtful services. Further, the Company strengthened market expansionwith nearly 100 new exclusive stores and steady improvement in the operations of Wuliangye New Retail.Fifthly, it was a fruitful year in technological innovation. The innovation platform system has becomemore complete. With the new China Scientific Research Centre for Baijiu Flavour and the China Engineeringand Technology Research Centre for Baijiu Brewing Grains, the number of the Company’s national innovationplatforms has increased to seven. A major technological breakthrough was achieved, with the discovery andannouncement of three typical microbial strains of strong-flavored Baijiu for the first time in the world, verifyingthe scarcity value of Wuliangye's special brewing environment and deciphering the key to the aroma of thenation. For the first time in the world, the 8
th-generation Wuliangye flavour spectrum has been unveiled withapproximately 3,000 compounds found, around 1,000 compounds more than the industry average. A number oftechnological achievements have been recognized as internationally advanced, and four of them including theresearch on new strains in old fermentation pit mud for strong-flavored Baijiu have been published as keyscientific and technological achievements of the Chinese Baijiu.
Finally, key projects progressed well. In pursuit of long-term growth, the Company launched the 345 highquality and fast growth programme. To be specific, the 523 workshop 2,000-ton capacity expansion project, the80,000-ton pottery jar cellar project, and the grinding automation project have been completed and put intooperation; main constructions have been completed for the Baijiu blending and storage cellar renovation project
and the intelligent packaging and warehousing integration project; and construction has started for the 100,000-ton ecological brewery phase I and phase II projects, the 110kV power distribution system renovation project,the Jiangbei water supply system upgrade project, the qu production capacity expansion project, and thecentralised waste water treatment plant project.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2022 | 2021 | Change (%) | |||
Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
Total | 73,968,640,704.54 | 100.00% | 66,209,053,612.11 | 100.00% | 11.72% |
By operating division | |||||
Manufacturing | 73,968,640,704.54 | 100.00% | 66,209,053,612.11 | 100.00% | 11.72% |
By product category | |||||
Liquor products | 67,562,646,631.24 | 91.34% | 61,731,839,992.96 | 93.24% | 9.45% |
Of which: Wuliangye-branded Baijiu products | 55,335,178,077.41 | 74.81% | 49,112,013,173.38 | 74.18% | 12.67% |
Other liquor products | 12,227,468,553.83 | 16.53% | 12,619,826,819.58 | 19.06% | -3.11% |
Plastic products | 3,201,867,776.04 | 4.33% | 2,509,011,509.24 | 3.79% | 27.61% |
Printing | 138,273,774.15 | 0.19% | 138,217,423.29 | 0.21% | 0.04% |
Glass bottles | 119,011,295.97 | 0.16% | 135,971,277.27 | 0.21% | -12.47% |
Other | 2,946,841,227.14 | 3.98% | 1,694,013,409.35 | 2.56% | 73.96% (note 2) |
By operating segment (note 1) | |||||
Liquor products | 67,562,646,631.24 | 91.34% | 61,731,839,992.96 | 93.24% | 9.45% |
Of which: East China | 18,985,619,872.12 | 25.67% | 18,782,177,440.32 | 28.37% | 1.08% |
South China | 7,481,640,730.11 | 10.11% | 7,430,135,341.39 | 11.22% | 0.69% |
West China | 21,538,460,675.15 | 29.12% | 16,979,243,862.88 | 25.64% | 26.85% |
North China | 8,414,668,164.38 | 11.38% | 7,535,414,625.22 | 11.38% | 11.67% |
Central China | 11,142,257,189.48 | 15.06% | 11,004,868,723.15 | 16.62% | 1.25% |
Non-liquor products | 6,405,994,073.30 | 8.66% | 4,477,213,619.15 | 6.76% | 43.08% (note 2) |
By sales model | |||||
Liquor products | 67,562,646,631.24 | 91.34% | 61,731,839,992.96 | 93.24% | 9.45% |
Of which: Distribution model | 40,492,386,915.69 | 54.74% | 37,776,547,362.99 | 57.06% | 7.19% |
Direct-to-consumer model | 27,070,259,715.55 | 36.60% | 23,955,292,629.97 | 36.18% | 13.00% |
Non-liquor products | 6,405,994,073.30 | 8.66% | 4,477,213,619.15 | 6.76% | 43.08% (note 2) |
Notes: 1. The sales regions are divided based on the places of registration of customers.
2. Mainly due to the active expansion of external markets for non-liquor products and businesses.
(2) Operating Division, Product Category, Operating Segment or Sales Model Contributing over 10% ofOperating Revenue or Operating Profit
? Applicable □ Not applicable
Unit: RMB
Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
By operating division | ||||||
Manufacturing (Liquor production) | 67,562,646,631.24 | 12,242,850,024.31 | 81.88% | 9.45% | 0.63% | 1.59% |
By product category | ||||||
Liquor products | 67,562,646,631.24 | 12,242,850,024.31 | 81.88% | 9.45% | 0.63% | 1.59% |
Of which: Wuliangye-branded Baijiu products | 55,335,178,077.41 | 7,434,393,364.78 | 86.56% | 12.67% | 5.06% | 0.97% |
Other liquor products | 12,227,468,553.83 | 4,808,456,659.53 | 60.67% | -3.11% | -5.53% | 1.00% |
By operating segment | ||||||
Liquor products | 67,562,646,631.24 | 12,242,850,024.31 | 81.88% | 9.45% | 0.63% | 1.59% |
Of which: East China | 18,985,619,872.12 | 2,810,516,337.59 | 85.20% | 1.08% | -17.63% | 3.37% |
South China | 7,481,640,730.11 | 1,126,829,964.29 | 84.94% | 0.69% | -4.05% | 0.75% |
West China | 21,538,460,675.15 | 4,731,384,798.37 | 78.03% | 26.85% | 15.97% | 2.06% |
North China | 8,414,668,164.38 | 1,181,126,024.59 | 85.96% | 11.67% | -5.23% | 2.50% |
Central China | 11,142,257,189.48 | 2,392,992,899.47 | 78.52% | 1.25% | 6.21% | -1.01% |
By sales model | ||||||
Liquor products | 67,562,646,631.24 | 12,242,850,024.31 | 81.88% | 9.45% | 0.63% | 1.59% |
Of which: Distribution model | 40,492,386,915.69 | 8,702,257,564.41 | 78.51% | 7.19% | -1.10% | 1.80% |
Direct-to-consumer model | 27,070,259,715.55 | 3,540,592,459.90 | 86.92% | 13.00% | 5.17% | 0.97% |
Data of principal operations for the prior period (2021) adjusted according to the changed methods ofmeasurement that occurred in the Reporting Period (if any):
? Applicable □ Not applicable
Unit: RMB
Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
By sales model | ||||||
Liquor products | 61,731,839,992.96 | 12,165,790,903.99 | 80.29% | 17.73% | 17.63% | 0.01% |
Of which: Distribution model | 37,776,547,362.99 | 8,799,371,305.03 | 76.71% | 16.11% | 16.53% | -0.08% |
Direct-to-consumer model | 23,955,292,629.97 | 3,366,419,598.96 | 85.95% | 20.39% | 20.60% | -0.02% |
Reasons for the changed methods of measurement:
The Company accelerated the construction of Smart Store 2.0 to enhance the service capability at the retailend and positioned the exclusive stores as the core of direct services for retail customers, in view of which theCompany adjusted the exclusive stores to the direct-to-consumer model.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
? Yes □ No
Operating division | Item | Unit | 2022 | 2021 | Change (%) |
Liquor | Sales volume | Metric ton | 127,161 | 181,775 | -30.04% (note) |
Production volume | Metric ton | 129,328 | 188,717 | -31.47% (note) | |
Inventory | Metric ton | 23,328 | 21,161 | 10.24% |
Any over 30% YoY movements in the data above and why:
? Applicable □ Not applicableNote: Mainly because Wuliang NongXiang optimized its product mix in 2022 to focus on mid- to high-priced products; and the sales base of low-priced products in 2021 was high.
(4) Execution Progress of Significant Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
Operating division | Item | 2022 | 2021 | Change in percentage | ||
Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
Manufacturing | Raw materials | 9,599,577,215.97 | 52.81% | 8,695,241,991.41 | 53.28% | -0.47% |
Labor cost | 5,705,800,119.67 | 31.39% | 5,141,719,582.95 | 31.51% | -0.12% | |
Energy | 934,705,836.04 | 5.14% | 947,639,638.53 | 5.81% | -0.67% | |
Production cost | 1,938,342,487.96 | 10.66% | 1,534,177,375.93 | 9.40% | 1.26% |
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ NoAs per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020~2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,the Company has strengthened the disposal of less competitive business entities that are not part of its principaloperations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and YibinWuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) | 9,799,743,491.32 |
Total sales to top five customers as % of total sales in the Reporting Period (%) | 13.25% |
Total sales to related parties among top five customers as % of total sales in the Reporting Period (%) |
Top five customers:
No. | Customer | Sales to the customer (RMB) | As % of total sales in the Reporting Period (%) |
1 | Customer A | 2,715,811,660.32 | 3.67% |
2 | Customer B | 2,106,211,539.64 | 2.85% |
3 | Customer C | 1,689,723,678.83 | 2.28% |
4 | Customer D | 1,650,422,292.90 | 2.23% |
5 | Customer E | 1,637,574,319.63 | 2.21% |
Total | -- | 9,799,743,491.32 | 13.25% |
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) | 2,816,306,970.68 |
Total purchases from top five suppliers as % of total purchases in the Reporting Period (%) | 22.22% |
Total purchases from related parties among top five suppliers as % of total purchases in the Reporting Period (%) | 10.13% |
Top five suppliers:
No. | Supplier | Purchases (RMB) | As % of total purchases in the Reporting Period (%) |
1 | Supplier A | 797,675,435.45 | 6.29% |
2 | Supplier B | 797,438,814.15 | 6.29% |
3 | Supplier C | 486,353,033.02 | 3.84% |
4 | Supplier D | 375,218,334.12 | 2.96% |
5 | Supplier E | 359,621,353.94 | 2.84% |
Total | -- | 2,816,306,970.68 | 22.22% |
Other information about major suppliers:
□ Applicable ? Not applicable
3. Expenses
Unit: RMB
Item | 2022 | 2021 | Change (%) | Main reason for any significant change |
Selling expense | 6,844,237,013.17 | 6,503,506,131.90 | 5.24% | |
Administrative expense | 3,068,119,268.45 | 2,899,968,867.37 | 5.80% | |
Finance costs | -2,026,351,047.92 | -1,731,702,085.22 | N/A | |
R&D expense | 235,783,645.79 | 177,411,727.65 | 32.90% | Greater investments in R&D projects such as production techniques |
(1) Breakdown of Selling Expense
Unit: RMB
Item | 2022 | 2021 | Change (%) | Reason for change | ||
Amount | As % of selling expense | Amount | As % of selling expense | |||
Image promotion expense | 1,240,440,205.34 | 18.12% | 1,218,266,158.62 | 18.73% | 1.82% | |
Sales promotion expense | 3,889,326,216.67 | 56.83% | 3,786,854,045.27 | 58.23% | 2.71% | |
Warehousing and logistics expense | 476,754,635.74 | 6.97% | 411,654,403.24 | 6.33% | 15.81% | |
Labor cost | 718,179,395.38 | 10.49% | 611,192,688.42 | 9.40% | 17.50% |
Other expenses | 519,536,560.04 | 7.59% | 475,538,836.35 | 7.31% | 9.25% | |
Total | 6,844,237,013.17 | 6,503,506,131.90 | 5.24% |
(2) Advertising Expense
During 2022, the Company’s primary advertising means included TV, broadcasting, Internet, outdoor adsand exhibitions. The expenses on online, offline and TV ads were RMB126 million, RMB755 million andRMB359 million, respectively.
4. R&D Investments
? Applicable □ Not applicable
Main R&D project | Purpose | Progress | Specific objectives | Expected impact on the Company |
Research on the replication of the pit mud engineering technology with modern biotechnology and its application in the Wuliangye high-quality multiplication project | The project is designed to replicate the similar function of naturally ageing pit mud with modern biotechnology and obtain man-made ageing pit mud with a similar flavour of naturally ageing pit mud and microbial flora during brewing, thereby enabling man-made pit mud to rapidly age and contributing to the construction of the new plant in the high-quality multiplication project. | (1) The new strain (code: JNU-WLY1368; Chinese name: 解糖利乳己小杆菌) of the main caproic acid bacteria in the strong-flavoured pit mud has been obtained. (2) The first purely cultured new species (code: JNU-WLY501; Chinese name: 501丙酸菌) of the proteiniphilum microorganism in the pit mud has been obtained. (3) In terms of achievements, major breakthroughs have been made in the research on the new species, metabolic mechanisms, and interaction of characteristic microorganisms in the strong-flavoured Baijiu brewing system, and the overall technology has reached an internationally advanced level. | The project aims to screen functional microorganisms in the pit mud and use them for man-made ageing of the pit mud and conduct a large-scale production and application demonstration in Wuliangye Baijiu production workshops. | The project will expedite the ageing of the new fermentation pits and pit mud, continuously increase the yield rate of high-quality unblended Baijiu, especially the famous wine rate, and help Wuliangye safeguard its advantageous position as China's largest brewing base using the pure-grain solid fermentation technique, keep in alignment with the development trend of the Baijiu industry, meet people's increasing demand for quality Baijiu, and consolidate Wuliangye's status as a leader in strong-flavoured Baijiu. |
Key technology for analysing small bioactive molecules during the brewing of Wuliangye and its application | The project is designed to establish a data bank of small bioactive molecules during the brewing of Wuliangye, providing technical support for research on the active ingredients in Baijiu and a data basis for "moderate drinking and healthy living". | (1) More than 100 small active molecules in Wuliangye Baobaoqu, fermented grains, brewing byproducts, and Baijiu have been separated and identified. (2) Thirteen invention patents have been applied for (nine of them have been granted), eleven papers have been published, and one corporate standard has been formulated. | The project aims to analyse the small bioactive molecules during the brewing of Wuliangye and use them for quality control of Baijiu. | The project will help analyse the small bioactive molecules during the brewing of the representative of strong-flavoured Baijiu--Wuliangye, provide a scientific basis for rational drinking, and play a critical role in improving Baijiu quality and expanding the Baijiu market. |
Development of Wuliangye intelligent brewing production line and | The project is designed to inherit the essence of the traditional | (1) The R&D of key brewing equipment has been completed, and a pilot demonstration line has been | The project aims to apply the demonstration | The dissemination and application of the project result will enable the bionic equipment to imitate flexible manual |
research on supporting production technique | production technique and develop intelligent bionic brewing equipment by focusing on the core brewing process of Wuliangye, thereby reducing labour intensity during production, improving production efficiency, and promoting the perfect integration of the traditional production technique and modern technology. | built. (2) The application of the designed intelligent brewing production line in the intelligent brewing base in the first phase of the Wuliangye high-quality multiplication project has been confirmed. Currently, the base has proceeded to construction. (3) More than 60 patent applications have been filed. | line on a certain scale in the brewing plants of Wuliangye. | operation, achieve the scientific analysis of the traditional brewing technique, and transform the experience- and skill-dominated production process toward a human-machine collaborative production process. This will help inherit the traditional production technique, stabilize the traditional production technique operation, and improve product quality. Concurrently, applying intelligent equipment can lower labour costs and boost the labour efficiency of brewing production lines. |
Particulars about R&D personnel:
2022 | 2021 | Change (%) | |
Number of R&D personnel | 2,574 | 2,571 | 0.12% |
R&D personnel as % of total employees | 10.11% | 9.96% | Up by 0.15 percentage point |
Educational background of R&D personnel | |||
Bachelor’s degree | 915 | 899 | 1.78% |
Master’s degree | 171 | 168 | 1.79% |
Doctoral degree | 14 | 13 | 7.69% |
Age structure of R&D personnel | |||
Below 30 | 860 | 857 | 0.35% |
30~40 | 987 | 988 | -0.10% |
Particulars about R&D investments:
2022 | 2021 | Change (%) | |
R&D investments (RMB) | 235,783,645.79 | 177,411,727.65 | 32.90% (note) |
R&D investments as % of operating revenue | 0.32% | 0.27% | Up by 0.05 percentage point |
Capitalized R&D investments (RMB) | 0.00 | 0.00 | 0.00% |
Capitalized R&D investments as % of total R&D investments | 0.00% | 0.00% | 0.00% |
Note: Mainly due to greater investments in R&D projects such as production techniques.Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
5. Cash Flows
Unit: RMB
Item | 2022 | 2021 | Change (%) |
Subtotal of cash generated from operating activities | 83,849,102,992.33 | 83,023,369,160.65 | 0.99% |
Subtotal of cash used in operating activities | 59,417,966,730.85 | 56,248,427,287.60 | 5.63% |
Net cash generated from/used in operating activities | 24,431,136,261.48 | 26,774,941,873.05 | -8.75% |
Subtotal of cash generated from investing activities | 69,705,342.99 | 47,904,368.82 | 45.51% (note 1) |
Subtotal of cash used in investing activities | 1,786,159,893.52 | 1,544,754,180.86 | 15.63% |
Net cash generated from/used in investing activities | -1,716,454,550.53 | -1,496,849,812.04 | N/A |
Subtotal of cash generated from financing activities | |||
Subtotal of cash used in financing activities | 13,105,431,458.20 | 11,269,456,954.06 | 16.29% |
Net cash generated from/used in financing activities | -13,105,431,458.20 | -11,269,456,954.06 | N/A |
Net increase in cash and cash equivalents | 9,609,386,518.94 | 14,008,165,578.27 | -31.40% (note 2) |
Explanation of why any of the data above varies significantly on a year-on-year basis:
? Applicable □ Not applicableNotes: 1. Mainly due to the increased net cash proceeds from the disposal of fixed assets, intangible assets andother long-term assets in the Reporting Period.
2. Mainly due to the high base in the prior year (higher cash proceeds from due bank acceptance notes),the year-on-year decrease in net cash generated from operating activities as a result of a slight increase in cashgenerated from operating activities and the increased taxes and levies paid, etc., and the increased cash dividendspaid in the Reporting Period.
Explanation of why the net cash generated from/used in operating activities varies significantly from the netprofit of the Reporting Period:
□ Applicable ? Not applicable
V Analysis of Non-Core Businesses
□ Applicable ? Not applicable
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2022 | 1 January 2022 | Change in percentage (%) | Reason for any significant change | |||
Amount | As % of total assets | Amount | As % of total assets | |||
Monetary assets | 92,358,426,975.79 | 60.48% | 82,335,955,927.74 | 60.71% | -0.23% | |
Accounts receivable | 35,686,942.32 | 0.02% | 64,193,116.22 | 0.05% | -0.03% |
Inventories | 15,980,657,013.57 | 10.46% | 14,015,067,118.25 | 10.33% | 0.13% | |
Long-term equity investments | 1,986,387,524.78 | 1.30% | 1,911,228,653.63 | 1.41% | -0.11% | |
Fixed assets | 5,312,971,445.61 | 3.48% | 5,610,147,000.37 | 4.14% | -0.66% | |
Construction in progress | 3,773,155,983.95 | 2.47% | 2,646,087,846.01 | 1.95% | 0.52% | |
Right-of-use assets | 380,922,885.84 | 0.25% | 697,805,952.69 | 0.51% | -0.26% | |
Contract liabilities | 12,379,125,542.70 | 8.11% | 13,058,652,246.11 | 9.63% | -1.52% | |
Lease liabilities | 16,976,148.73 | 0.01% | 355,338,950.93 | 0.26% | -0.25% |
Indicate whether overseas assets account for a large proportion in total assets.
□ Applicable ? Not applicable
2. Assets and Liabilities Measured at Fair Value
? Applicable □ Not applicable
Unit: RMB
Item | Opening amount | Gain/loss on fair-value changes in the current period | Cumulative fair-value changes recognized in equity | Impairment allowance for the current period | Purchased in the current period | Sold in the current period | Other changes | Closing amount |
Financial assets | ||||||||
1. Held-for-trading financial assets (exclusive of derivative financial assets) | 1,200,000.00 | 1,200,000.00 | ||||||
2. Derivative financial assets | ||||||||
3. Other debt investments | ||||||||
4. Other equity investments | ||||||||
5. Receivables financing | 1,641,509,588.69 | 27,262,688,831.75 | 28,904,198,420.44 | |||||
Subtotal of financial assets | 1,642,709,588.69 | 27,262,688,831.75 | 28,905,398,420.44 | |||||
Investment property | ||||||||
Productive living assets |
Other | ||||||||
Total of the above | 1,642,709,588.69 | 27,262,688,831.75 | 28,905,398,420.44 | |||||
Financial liabilities |
Contents of other changes:
The Company classified the portion of bank's acceptance notes received that were to be endorsed ordiscounted as receivables financing, and other changes during the current period represented the net amountrecognized and utilized during the current period.Indicate whether any significant change occurred to the measurement attributes of the major assets in theReporting Period.
□ Yes ? No
3. Restricted Assets as at the Period-end
? Applicable □ Not applicable
Unit: RMB
Item | Closing carrying amount | Reason for restriction |
Monetary assets | 192,532,713.23 | The balance of RMB3,222.19 in the securities trading account with the Yibin Business Department of Essence Securities, security deposits of RMB192,004,714.62 for bank acceptance notes, and other security deposits of RMB524,776.42 |
Receivables financing | 117,021,640.00 | In pledge for bank acceptance notes |
Total | 309,554,353.23 |
VII Investment Analysis
1. Total Investment Amount
□ Applicable ? Not applicable
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable ? Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable ? Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
? Applicable □ Not applicable
(1) General Information about the Use of Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
Year of raising | Way of raising | Total amount raised | Used in the current period | Cumulatively used | Re-purposed amount in the Reporting Period | Cumulative re-purposed amount | Cumulative re-purposed amount as % of total | Unused amount | Purpose and whereabouts of the unused amount | Amount being idle for more than two years |
amount raised | ||||||||||
2018 | Private placement of shares | 185,327.74 | 45,360.72 | 193,500.84 | 0 | 169,405.51 | 91.41% | 0 | N/A | N/A |
Total | -- | 185,327.74 | 45,360.72 | 193,500.84 | 0 | 169,405.51 | 91.41% | 0 | -- | 0 |
General information about the use of raised funds | ||||||||||
As of 31 December 2022, The Company had used up the total raised funds of RMB1,935 million (including the net proceeds of RMB1,813 million and the interest income of RMB122 million). |
(2) Promised Use of Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
Promised raised funds investment project and investments with over-raised funds | Re-purposed or partially re-purposed or not | Total promised investment amount with raised funds | Adjusted total investment amount (1) | Used in the Reporting Period | Cumulatively used as of the period-end (2) | Investment progress as of the period-end (3)=(2)/(1) | Time when the project is ready for its intended use | Returns derived in the Reporting Period | Meeting the expected returns or not | Significant change to project feasibility or not |
Promised projects | ||||||||||
Information technology-based transformation | Yes | 71,530 | 5,644.64 | 5,644.64 | 100.00% | N/A | N/A | N/A | No | |
Construction of a marketing center | Yes | 50,793 | 3,944.06 | 3,944.06 | 100.00% | N/A | N/A | N/A | No | |
Service-oriented e-commerce platform | Yes | 63,074 | 8,434.04 | 8,434.04 | 100.00% | N/A | N/A | N/A | No | |
Finished liquor packaging and intelligent warehousing and distribution integration | No | 94,422.74 | 28,795.55 | 98,132.23 | 103.93% | Expectedly December 2023 | N/A | N/A | No | |
Baijiu | No | 74,982.77 | 16,565.17 | 77,345.87 | 103.15 | N/A | N/A | No |
blending and storage cellar renovation | % | |||||||||
Subtotal of promised projects | -- | 185,397 | 187,428.25 | 45,360.72 | 193,500.84 | -- | -- | -- | -- | |
Investments with over-raised funds | ||||||||||
Total | -- | 185,397 | 187,428.25 | 45,360.72 | 193,500.84 | -- | -- | 0 | -- | -- |
Explain project by project the reasons for not reaching the scheduled progress or expected returns (including reasons for inputting ―N/A‖ for ―Meeting the expected returns or not‖) | N/A | |||||||||
Particulars about significant change to project feasibility | N/A | |||||||||
Amount, purpose and use progress of over-raised funds | N/A | |||||||||
Change of implementation location of raised funds investment projects | N/A | |||||||||
Adjustments to the way of implementation of raised funds | N/A |
investment projects | |
Advance investments in promised projects funded with raised funds and subsequent swaps | N/A |
Use of idle raised funds for temporarily supplementing the working capital | N/A |
Surplus amount of raised funds upon project implementation and the reasons | N/A |
Purpose and whereabouts of unused raised funds | N/A |
Problems or other issues arising in the use and disclosure of raised funds | N/A |
(3) Re-purposed Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
New project | Former project | Total raised funds to be invested in the new project (1) | Used in the Reporting Period | Cumulatively used as of the period-end (2) | Investment progress as of the period-end (3)=(2)/(1) | Time when the project is ready for its intended use | Returns derived in the Reporting Period | Meeting the expected returns or not | Significant change to the feasibility of the new project or not |
Finished Liquor packaging and | Information technology-based transformation, | 94,422.74 | 28,795.55 | 98,132.23 | 103.93% | Expectedly December 2023 | N/A | N/A | No |
intelligent warehousing and distribution integration | construction of a marketing center, and service-oriented e-commerce platform | ||||||||
Baijiu blending and storage cellar renovation | 74,982.77 | 16,565.17 | 77,345.87 | 103.15% | N/A | N/A | No | ||
Total | -- | 169,405.51 | 45,360.72 | 175,478.1 | -- | -- | -- | -- | |
Reasons for the changes, decision-making procedure executed and relevant disclosed information (project by project) | The Proposal on Changes to the Purpose and User of Funds Raised in a Private Placement was approved at the 73rd Meeting of the Fifth Board of Directors on 24 April 2020 and then at the 2019 Annual General Meeting of Shareholders on 29 May 2020. As such, it was agreed to change the purpose of the raised funds, and change the user from Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. to Sichuan Yibin Wuliangye Distillery Co., Ltd. For further information, see the Announcement on Resolutions of the 73rd Meeting of the Fifth Board of Directors, the Announcement on Resolutions of the 2019 Annual General Meeting of Shareholders, and the Announcement on Signing a Four-party Supervision Agreement for the Special Account for Raised Funds for a Private Placement. | ||||||||
Reasons for not reaching the scheduled progress or expected returns (project by project) | N/A | ||||||||
Particulars about significant change to the feasibility of the new projects | N/A |
VIII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable ? Not applicable
IX Principal Subsidiaries and Joint Stock Companies? Applicable □ Not applicablePrincipal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets |
Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Liquor-related operations | 200,000,000.00 | 54,143,959,635.14 | 30,465,929,640.29 |
Unit: RMB
Name | Relationsh | Principal | Operating revenue | Operating profit | Net profit |
ip with the Company | activities | ||||
Yibin Wuliangye Liquor Sales Co., Ltd. | Subsidiary | Liquor-related operations | 55,106,792,873.09 | 26,483,924,329.02 | 19,857,416,073.60 |
Subsidiaries acquired or disposed of in the Reporting Period:
? Applicable □ Not applicable
Name of company | Way of acquisition or disposal | Impact on the Company |
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. and Wuhou Cultural Development Co., Ltd. | De-registered | As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels (2020~2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the Company has strengthened the disposal of less competitive business entities that are not part of its principal operations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and Yibin Wuliangye Xinshengdai Liquor Co., Ltd., were de-registered. |
X Structured Entities Controlled by the Company
□ Applicable ? Not applicable
XI Prospects(I) Industry Landscape and TrendsFrom a macroeconomic point of view, China's economy remains resilient with great potential and vitality,and the conditions that support the country’s achievement of high-quality development have not changed. Inparticular, governments at all levels have prioritised the recovery and expansion of consumption in 2023,providing multiple channels to increase the income of urban and rural residents, which will accelerate therecovery of consumption.For the Baijiu industry, growth is a long-term trend. The structural prosperity of the industry is acceleratingtowards strong brands, top producers, and major regions of production, with better overall efficiency. Withconsumption gradually recovering, the Baijiu industry is ushering in a new round of strategic opportunities.
In terms of policy-related opportunities, the Central Committee of the Communist Party of China and theState Council jointly issued a strategic planning outline for expanding domestic demand. With expandingdomestic demand being lifted as a national strategy, the potential for Baijiu consumption remains huge.Meanwhile, Sichuan Province takes the development of distinctive industries and strategic emerging industriesas a key task, vigorously implementing a plan to drive the quality and growth of these industries. In addition,Yibin City supports Wuliangye to lead the way in the creation of a world-class premium Baijiu industry cluster.As such, the Company will embrace multiple strategic opportunities.
(II) Development Strategies of the Company: The Company will vigorously implement the 135development strategy. With an aim to develop into a world-leading Baijiu producer with superior products,strong brands, advanced innovation and modern governance, the Company will promote the three majorprogrammes of quality brands, marketing innovation and high-quality & fast growth, and make every effort tobuild an ecological and quality-oriented Wuliangye with culture as the foundation, digital transformation as thedriver and sound corporate governance as the support. It will further polish the signboard of "Aroma of theNation, Harmony of Wuliangye, Masterpiece of Chinese Baijiu", and lead the way in the creation of a world-class premium Baijiu industry cluster.
(III) Completion of the Business Plan for 2022
1. Planning at the beginning of the year: Continued double-digit growth in operating revenue in 2022.
2. Realities: In 2022, the Company achieved operating revenue of RMB73.969 billion, up 11.72% year onyear.
(IV) Development Goals for 2023
The Company's operation goal for 2023: A continued double-digit growth in operating revenue.
In 2023, the Company will follow the general principle of "staying politically aware, driving development,improving people's livelihood, ensuring safety, and delivering first-class performance", comply with the general
requirements of "focusing on stability, seeking progress in stability, improving quality and efficiency, as well asmaking more contributions", and adhere to the philosophy of "taking quality, culture, integrity and innovation asthe foundation". Proactive actions will be taken to shore up weak spots, develop strengths, as well as strive forhigh-quality development and sound financial growth, so as to further solidify the Company’s position as aleading producer of strong-flavored Baijiu in China.
(V) Potential RisksFirstly, there exist uncertainties in the macro environment; secondly, consumption is not recovering in anexpected pace; and finally, competition in the industry, especially among the top players, is increasingly intense.XII Researches, Inquiries, Interviews, etc. Received during the Reporting Period? Applicable □ Not applicable
Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
22 January 2022 | Yibin | By phone | Institution | AEGON-INDUSTRIAL Fund | The Company’s development strategies, production and operation status | http://www.cninfo.com.cn |
9 February 2022 | Yibin | By phone | Institution | E Fund | ||
17 February 2022 | Yibin | One-on-one meeting | Institution | HSBC Qianhai, Greenwoods Asset Management, and Allianz Capital Partners | ||
18 February 2022 | Yibin | By phone | Institution | Brilliance Capital | ||
24 February 2022 | Yibin | By phone | Institution | Fullgoal Fund, China Universal, Penghua Fund, and BOCOM Schroders | ||
1 March 2022 | Yibin | One-on-one meeting | Institution | Taikang, China Universal, and ICBC Credit Suisse Asset Management | ||
3 March 2022 | Yibin | By phone | Institution | China Merchants Fund, China Post Fund, and Yinhua Fund | ||
4 March 2022 | Yibin | By phone | Institution | China Universal | ||
11 March 2022 | Yibin | Securities firm’s investment strategy conference | Institution | E Fund, China Merchants Fund, Invesco Great Wall Fund Management, and Taikang Asset | ||
16-17 March 2022 | Yibin | By phone and one-on-one meeting | Institution | CCB Wealth Management, Ping An Fund Management, BOCIM, and China Southern Asset Management | ||
24 March 2022 | Yibin | By phone | Institution | China Life Asset, ICBC Credit Suisse Asset Management, BlackRock, and Nuode Asset Management | ||
19 May 2022 | Yibin | By phone | Institution | Zhong Ou Asset, Yinhua Fund, E Fund, and Nuode Asset Management | ||
25 May 2022 | Yibin | One-on-one meeting and by phone | Institution | E Fund and Taikang Asset |
27 May 2022 | Yibin | General meeting of shareholders | Institution and individual | China Southern Asset Management, Invesco Great Wall Fund Management, and Great Wall Fund |
31 May 2022 | Yibin | One-on-one meeting | Institution | JPMorgan Chase, UBS Asset Management, and Canada Pension Plan |
2 June 2022 | Yibin | By phone | Institution | Fidelity, Tiger Pacific Capital LP, Harvest Fund, and Fullgoal Fund |
10-11 June 2022 | Yibin | One-on-one meeting and by phone | Institution | Panjing Invest, PICC Asset Management, Penghua Fund, and Canada Pension Plan |
17 June 2022 | Yibin | By phone | Institution | Invesco Great Wall Fund Management, Citibank, Ninetyone, and Goldman Sachs Asset Management |
20 June 2022 | Yibin | By phone | Institution | Huachuang Securities |
30 June 2022 | Yibin | By phone | Institution | Zhongtai Securities and Yongjin Investment |
6 July 2022 | Yibin | One-on-one meeting | Institution | Northeast Securities, CICC, and Anatole Investment |
8 July 2022 | Yibin | By phone and one-on-one meeting | Institution | Bosera Funds, Orient Securities Asset Management, Ping An Fund Management, and BlackRock |
12-15 July 2022 | Yibin and Chengdu | By phone and one-on-one meeting | Institution | Zheshang Securities, Fullgoal Fund, Western Securities, Soochow Securities, Tebon Securities, and GF Fund Management |
18 July 2022 | Yibin | One-on-one meeting | Institution | Huatai Securities, China Merchants Fund, and China Universal |
21-25 July 2022 | Yibin | By phone and one-on-one meeting | Institution | Bosera Funds, Brilliance Capital, E Fund, and China Universal |
31 August 2022 | Yibin | One-on-one meeting | Institution | E Fund |
1-2 September 2022 | Shanghai | Securities firm’s investment strategy conference | Institution | China Universal, Mega Trust, Bank of China Asset Management, and AEGON-INDUSTRIAL Fund |
6 September 2022 | Yibin | By phone | Institution | Minsheng Securities and Ping An Annuity Insurance |
7-9 September 2022 | Shanghai, Qingdao and Changsha | Securities firm’s investment strategy conference | Institution | AEGON-INDUSTRIAL Fund, Fullgoal Fund, Taiping Asset Management, Zhong Ou Asset, and Sinolink Securities |
11-16 September 2022 | Yibin | By phone | Institution | GF Fund Management, BOCIM, Huitaifu Fund, and Sealand Asset Management |
24 September 2022 | Yibin | By phone | Institution | First Seafront and BOCOM Schroders |
4 November 2022 | Chengdu | By phone and securities firm’s investment strategy conference | Institution | China Asset Management, GF Fund Management, HuaAn Fund, Tongben Invest, and Loyal Valley |
7-9 November 2022 | Chengdu | Securities firm’s investment strategy conference | Institution | Ping An Fund Management, Guotai Asset Management, Maxwealth Fund, Tongben Invest, Cinda Fund, and Bosera Funds |
23-29 December 2022 | Yibin | By phone | Institution | China Universal, New China Fund, E Fund, and Schroders |
Part IV Corporate Governance
I Corporate Governance OverviewIn 2022, focusing closely on the development goal of building a world-class enterprise with moderngovernance, the Company continued to improve its corporate governance structure, optimize its mechanisms, aswell as accelerate the establishment of a well-organized, well-coordinated and well-balanced corporategovernance mechanism.
1. The corporate governance structure has further improved. During the Reporting Period, theCompany completed the re-election of the sixth Board of Directors and the sixth Supervisory Committee.Meanwhile, staffing has been further improved for the five special committees under the Board of Directors,namely the Strategy Committee, the Remuneration and Appraisal Committee, the Nomination Committee, theAudit Committee, and the Comprehensive Budget Management Committee. And new senior executives havebeen appointed by the Board of Directors. As such, a well-coordinated and well-balanced corporate governancemechanism has been put in place, enabling scientific decision-making and efficient operation.
2. A series of operational rules have been refined. During the Reporting Period, the Company amendedthe Articles of Association, the Rules of Procedure for General Meetings of Shareholders, the Rules of Procedurefor the Board of Directors, the Operational Rules for Major Decision-making, Personnel Appointments andDismissals, Project Arrangements and Operation of Large Sums of Money, etc., which has further refined thesystem of rules. As such, a sound mechanism of categorised and tiered delegation of authority has been put inplace to ensure that each governance body has its own role to play.
Indicate whether there is any material incompliance with the applicable laws, regulations, or rules issued bythe CSRC governing the governance of listed companies.
□ Yes ? No
No such cases.II Independence of the Company from its Controlling Shareholder and Actual Controller inAssets, Personnel, Finance, Organizational Structure, Business, etc.
The Company is independent of its controlling shareholder in business, personnel, assets, organizationalstructure, finance, etc. It has independent and complete systems of production and operation and is able tooperate on its own.
In terms of business, the Company has independent production and operation systems, productionsupporting systems and related ancillary facilities. It is able to make decisions on its own with respect tooperating activities.
In terms of personnel, the Company independently manages labor, human resources and salaries.
In terms of assets, the Company has ownership and control of its assets, and the controlling shareholderdoes not occupy its assets or funds.
In terms of organizational structure, the principal management organs and systems for production andoperation of the Company are independent.
In terms of finance, the Company has an independent financial organ, independent accounting system andfinancial management mechanism, and has its own bank account.
III Horizontal Competition
□ Applicable ? Not applicable
IV Annual and Extraordinary General Meetings of Shareholders Convened during theReporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Resolutions |
The 2021 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 71.49% | 27 May 2022 | 28 May 2022 | See the Announcement on Resolutions of the 2021 Annual General Meeting of Shareholders (2022/No. 028) |
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholderswith Resumed Voting Rights
□ Applicable ? Not applicable
V Directors, Supervisors and Senior Management
1. General Information
Name | Office title | Status | Gender | Age | Start of office term | End of office term | Opening shareholding (share) | Increase in the current period (share) | Decrease in the current period (share) | Other increase/decrease (share) | Closing shareholding (share) | Reason for share changes |
Zeng Congqin | Secretary of the CPC Committee | Incumbent | Male | 54 | 28 January 2022 | Currently ongoing | ||||||
Chairman of the Board | 27 May 2022 | |||||||||||
Jiang Wenge | Deputy Secretary of the CPC Committee | Incumbent | Male | 56 | 28 January 2022 | Currently ongoing | ||||||
Vice Chairman of the Board and General Manager | 27 May 2022 | |||||||||||
Zhang Yu | Member of the CPC Committee | Incumbent | Male | 48 | 30 December 2020 | Currently ongoing | ||||||
Vice Chairman of the Board | 27 May 2022 | |||||||||||
Liang Li | Director | Incumbent | Female | 52 | 27 May 2022 | Currently ongoing | ||||||
Xu Bo | Director | Incumbent | Female | 55 | 27 May 2022 | Currently ongoing | ||||||
Xiao Hao | Deputy Secretary of the CPC Committee | Incumbent | Male | 46 | 15 December 2021 | Currently ongoing | ||||||
Director | 27 May 2022 | |||||||||||
Jiang Lin | Member of the CPC Committee | Incumbent | Female | 43 | 22 February 2022 | Currently ongoing | ||||||
Director and | 27 May 2022 |
Deputy General Manager | ||||||||||||
Board Secretary | 24 August 2022 | |||||||||||
Xie Zhihua | Independent Director | Incumbent | Male | 63 | 27 May 2022 | Currently ongoing | ||||||
Wu Yue | Independent Director | Incumbent | Male | 56 | 27 May 2022 | Currently ongoing | ||||||
Hou Shuiping | Independent Director | Incumbent | Male | 67 | 27 May 2022 | Currently ongoing | ||||||
Luo Huawei | Independent Director | Incumbent | Male | 53 | 27 May 2022 | Currently ongoing | ||||||
Liu Ming | Member of the CPC Committee | Incumbent | Male | 52 | 22 February 2022 | Currently ongoing | 6,065 | |||||
Chairman of the Supervisory Committee | 27 May 2022 | |||||||||||
Zhang Xin | Supervisor | Incumbent | Male | 53 | 27 May 2022 | Currently ongoing | ||||||
Zhang Qing | Employee Supervisor | Incumbent | Male | 57 | 27 May 2022 | Currently ongoing | 12,730 | |||||
Wu Guoping | Employee Supervisor | Incumbent | Male | 53 | 27 May 2022 | Currently ongoing | 17,594 | 40,988 | Granted under employee stock ownership plan | |||
Yang Yunxia | Member of the CPC Committee | Incumbent | Female | 51 | 23 May 2022 | Currently ongoing | 15,894 | |||||
Chief Engineer | 27 May 2022 | |||||||||||
Jiang Jia | Member of the CPC Committee | Incumbent | Male | 48 | 22 February 2022 | Currently ongoing | 11,841 | |||||
Chief Economist | 27 May 2022 | |||||||||||
Xie Zhiping | Member of the CPC Committee | Incumbent | Male | 54 | 26 October 2022 | Currently ongoing | ||||||
CFO | 4 November 2022 | |||||||||||
Yue | Deputy | Incu | Mal | 50 | 27 May 2022 | Currently ongoing | 9,819 |
Song | General Manager | mbent | e | |||||||||
Liu Yang | Deputy General Manager | Incumbent | Male | 44 | 27 May 2022 | Currently ongoing | ||||||
Li Jian | Deputy General Manager | Incumbent | Male | 48 | 27 May 2022 | Currently ongoing | ||||||
Li Shuguang | Secretary of the CPC Committee and Director | Former | Male | 60 | 21 April 2017 | 18 February 2022 | ||||||
Zou Tao | Member of the CPC Committee, Vice Chairman of the Board and General Manager | Former | Male | 44 | 21 July 2018 | 18 February 2022 | ||||||
Luo Wei | Member of the CPC Committee, Deputy General Manager and CFO | Former | Male | 58 | 18 July 2014 | 4 November 2022 | ||||||
Zhou Yousu | Independent Director | Former | Male | 70 | 22 June 2016 | 27 May 2022 | ||||||
Gan Shengdao | Independent Director | Former | Male | 56 | 18 November 2016 | 27 May 2022 | ||||||
Cao Hongying | Employee Supervisor | Former | Female | 56 | 5 June 2020 | 27 May 2022 | ||||||
Hu Jianfu | Supervisor | Former | Male | 38 | 27 May 2022 | 17 March 2023 | ||||||
Zhao Dong | Member of the CPC Committee and Chief Engineer | Former | Male | 58 | 12 July 2017 | 19 May 2022 | 12,130 | |||||
Liu Feng | Supervisor | Former | Female | 53 | 29 May 2020 | 27 May 2022 | ||||||
Total | -- | -- | -- | -- | -- | -- | 17,594 | 109,467 | -- |
Indicate whether any director, supervisor or senior management resigned before the expiry of their officeterms during the Reporting Period.
□ Yes ? No
Changes of directors, supervisors and senior management:
? Applicable □ Not applicable
Name | Office title | Type of change | Date | Reason |
Zeng Congqin | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Chairman of the | Elected by the Board of Directors |
Board | ||||
Jiang Wenge | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Vice Chairman of the Board | Elected by the Board of Directors | |||
General Manager | Appointed | Appointed by the Board of Directors | ||
Zhang Yu | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Vice Chairman of the Board | Elected by the Board of Directors | |||
Liang Li | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Xu Bo | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Xiao Hao | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Jiang Lin | Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Deputy General Manager | Appointed | Appointed by the Board of Directors | ||
Board Secretary | 24 August 2022 | |||
Xie Zhihua | Independent Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Wu Yue | Independent Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Hou Shuiping | Independent Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Luo Huawei | Independent Director | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Liu Ming | Supervisor | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Chairman of the Supervisory Committee | Elected | 27 May 2022 | Elected by the Supervisory Committee | |
Zhang Xin | Supervisor | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Hu Jianfu | Supervisor | Elected | 27 May 2022 | Elected at a general meeting of shareholders |
Former | 17 March 2023 | Resigned for work reasons | ||
Zhang Qing | Employee Supervisor | Elected | 27 May 2022 | Elected in a staff congress |
Wu Guoping | Employee Supervisor | Elected | 27 May 2022 | Elected in a staff congress |
Yang Yunxia | Chief Engineer | Appointed | 27 May 2022 | Appointed by the Board of Directors |
Jiang Jia | Chief Economist | Appointed | 27 May 2022 | Appointed by the Board of Directors |
Xie Zhiping | CFO | Appointed | 4 November 2022 | Appointed by the Board of Directors |
Yue Song | Deputy General Manager | Appointed | 27 May 2022 | Appointed by the Board of Directors |
Liu Yang | Deputy General Manager | Appointed | 27 May 2022 | Appointed by the Board of Directors |
Li Jian | Deputy General Manager | Appointed | 27 May 2022 | Appointed by the Board of Directors |
Li Shuguang | Director | Former | 18 February 2022 | Resigned for a job change |
Zou Tao | Vice Chairman of the Board and General Manager | Former | 18 February 2022 | Resigned for a job change |
Zhou Yousu | Independent Director | Former | 27 May 2022 | Dismissed at a general meeting of shareholders |
Gan Shengdao | Independent Director | Former | 27 May 2022 | Dismissed at a general meeting of shareholders |
Zhao Dong | Chief Engineer | Appointed | 3 March 2022 | Appointed by the Board of Directors |
Former | 19 May 2022 | Ceased to be Chief Engineer due to age | ||
Liu Feng | Supervisor | Former | 27 May 2022 | Dismissed at a general meeting of shareholders |
Cao Hongying | Employee Supervisor | Former | 27 May 2022 | Dismissed at a staff congress |
Luo Wei | Deputy General Manager and CFO | Former | 4 November 2022 | Ceased to be Deputy General Manager and CFO due to age |
2. Biographical Information
Professional backgrounds, main work experience and current positions in the Company of the incumbentdirectors, supervisors and senior management:
(1) Mr. Zeng Congqin, a doctoral degree holder. He began to work in July 1988 and successively served inChangning County of Yibin, municipal authorities, Cuiping District, and Lingang Economic Development Zone.He once served as a member of the Standing Committee of the Changning County CPC Committee, Director ofthe Publicity Department, and Executive Deputy County Chief of Changning County, Director of the InvestmentService Bureau of Yibin Lingang Economic Development Zone, Secretary of the Party Leadership Group andDirector of the Yibin Municipal Development and Reform Commission and Director of the Municipal PriceBureau, Director of the Municipal Bureau of Energy, Secretary of the Cuiping District CPC Committee, andSecretary of the Party Working Committee of Lingang Economic Development Zone. At present, he serves as theSecretary of the CPC Committee and the Chairman of the Board of the Company, as well as the Secretary of theCPC Committee and the Chairman of the Board of Wuliangye Group.
(2) Mr. Jiang Wenge, a master's degree holder. He began to work in August 1985 and successively served inPeng'an County and Shunqing District of Nanchong City, Sichuan, the Sichuan Provincial Development andReform Commission, and the Welfare-to-work Office of Sichuan Province. He once served as the Deputy Headof Shunqing District Government, Deputy Director of the Employment and Income Distribution Office, DeputyDirector of the Division of Rural Economy, and Director of the Division of Rural Economy of SichuanProvincial Development and Reform Commission, and the Deputy Director and Primary Investigator of theWelfare-to-work Office of Sichuan Province. He now serves as the Deputy Secretary of the CPC Committee,Vice Chairman of the Board, and General Manager of the Company.
(3) Mr. Zhang Yu, a doctoral degree holder. He began to work in July 1997 and successively served in theChengdu Education Bureau, Qingyang District Government and Xindu District Committee. He once served asSecretary of CPC Committee, Director, and Party Group Secretary of the District Education Bureau, a memberof the Party Group of the District Government, Deputy District Chief, a member of the Standing Committee ofDistrict Committee and Director of the Organization Department of the District Government, Deputy Secretaryof the CPC Committee of Wuliangye Group from April to December 2020, and Deputy Secretary of the CPCCommittee of the Company from December 2020 to December 2021. Currently, he is a member of the CPCCommittee and Vice Chairman of the Board of the Company.
(4) Ms. Liang Li, a bachelor's degree holder. She began to work in November 1986 and once tookcommunity-level posts in towns, the organization department of the county CPC Committee, and the urbangovernance office. She took the posts of Director of the Office and Head of the Agriculture Section of YibinMunicipal Finance Bureau, Member of the CPC Committee and Chief Financial Officer of Yibin KaiyiAutomobile Co., Ltd., Deputy Secretary to the CPC Committee and General Manager of Yibin SanjiangInvestment and Construction Group Co., Ltd. Concurrently, she was the Secretary to the CPC Committee andChairman of Sichuan Changjiang Private Economy Financing Guarantee Co., Ltd. At present, she serves asDirector of the Company and Secretary of the CPC Committee and Chairman of the Board of YibinDevelopment Group.
(5) Ms. Xu Bo, a bachelor's degree holder. She began to work in December 1983 and successively servedin the Electronic Education Company of the Yibin Education Bureau and the Yibin City Bureau of Audit. Sheonce served as the Deputy Head, Head, and Deputy Director of the Yibin City Bureau of Audit. She now servesas a Director of the Company, as well as a Director and the General Manager of Yibin Development Group.
(6) Mr. Xiao Hao, a master's degree holder. He began to work in July 1998. He successively served in theOrganization Department of the CPC Committee of Yibin County, the Organization Department of the CPCCommittee of Yibin City, and the Office of the CPC Committee of Yibin City. He successively served as theDeputy Director of Municipal CPC Committee Office, Director of the Standing Committee Office of theMunicipal CPC Committee, and Deputy Secretary-General of the Municipal CPC Committee. He served as theDeputy Secretary of the CPC Committee of Wuliangye Group from December 2020 to December 2021. He hasbeen the Deputy Secretary of the CPC Committee of the Company since December 2021, and the DeputySecretary of the CPC Committee and a Director of Wuliangye Group since March 2022. He is now a DeputySecretary of the CPC Committee and a Director of the Company.
(7) Ms. Jiang Lin, a doctoral degree holder. She began to work in July 2004 and successively served inResearch Office of Chongqing Municipal Government, Research Office of Chengdu Municipal Committee,Chengdu Finance Office, Tianfu International Fund Area, and Wanchuang Investment Holdings Chengdu Co.,Ltd. She once served as the Deputy Head of the Economy Division of the Research Office of ChengduMunicipal Committee, Deputy Head and Head of the Capital Market Division of the Chengdu Finance Office,Director and General Manager of the Tianfu International Fund Area, and Deputy General Manager of
Wanchuang Investment Holdings Chengdu Co., Ltd. She now serves as a member of the CPC Committee,Director, and Deputy General Manager of the Company, in addition to being a Director and the Secretary of theCPC Branch of Wuliangye Group Finance, as well as a Director of Yibin Wuliangye Fund Management Co., Ltd.,Sichuan Bank, and Sichuan United Liquor Exchange Co., Ltd.
(8) Mr. Xie Zhihua, a doctoral degree holder, professor, certified public accountant, and Expert of theSpecial Government Allowances of the State Council. He began to work in June 1976 and successively served inXiangxi Autonomous Prefecture Commercial School, Beijing Business School, and Beijing Technology andBusiness University. He once served as the Deputy Director, Director, Director of the Academic AffairsDepartment, and Vice President of the Accounting Faculty of Beijing Business School, and a member of the CPCCommittee and Vice President of Beijing Technology and Business University. He now serves as an IndependentDirector of the Company, Professor of Beijing Technology and Business University, as well as an IndependentDirector of BJB (Beijing) Information Technology Co., Ltd., China Non-ferrous Metal Industry's ForeignEngineering and Construction Co., Ltd., Sinochem Energy Co., Ltd., Yunnan Hongta Bank Co., Ltd., and Bankof Jiaxing Co., Ltd.
(9) Mr. Wu Yue, a doctoral degree holder and professor. He now serves as the Professor at the School ofLaw of Southwestern University of Finance and Economics, and concurrently serves as the Vice President ofSichuan Business Law Research Association, Executive Director of China Business Law Research Association,Arbitrator of China International Economic and Trade Arbitration Commission, and Arbitrator of ChengduArbitration Commission, and Independent Director of the Company, Independent Director of Chengdu CorproTechnology Co., Ltd., Independent Director of Sichuan MIngxing Electric Power Co., Ltd., and IndependentDirector of Sichuan Jule Food Co., Ltd.
(10) Mr. Hou Shuiping, a doctorate degree holder, researcher and an expert entitled to special allowancesfrom the State Council. He took the posts of Dean of the Sichuan Academy of Social Sciences and DeputyDirector of the Decision-making Advisory Committee (Provincial Science and Technology Advisory Group) ofthe CPC Sichuan Provincial Committee and the People's Government of Sichuan Province. At present, he servesas a researcher and post-doctoral co-supervisor at the Sichuan Academy of Social Sciences, Vice Chairman andDirector of the Academic Committee of Sichuan Law Society, and Independent Director of Sichuan YahuaIndustrial Group Co., Ltd., Sichuan Shudao Equipment & Technology Co., Ltd., and the Company.
(11) Mr. Luo Huawei, a doctorate degree holder, professor, certified public accountant, and legalpractitioner. At present, he serves as a doctoral supervisor at Sichuan Agricultural University, Director of theAccounting Society of Sichuan, External Director of Ya'an Development Investment Co., Ltd., and IndependentDirector of Sichuan Yahua Industrial Group Co., Ltd. and the Company.
(12) Mr. Liu Ming, a bachelor's degree holder, senior engineer of liquor brewing, and China LiquorBrewing Master, national-level specially-invited Baijiu appraisal committee member. He began to worked inWuliangye distillery in December 1986 and once served as the Deputy Director and Director of the workshop,and concurrently served as the Deputy Secretary of the Party Branch, Secretary of the Party Branch, President ofthe Branch Labor Union, Secretary of the Party General Branch, General Manager and Chairman of YibinChangjiangyuan Liquor Co., Ltd., Assistant to the General Manager and Director of the Production ManagementDepartment of the Company. He served as the Chief Engineer of the Company from July 2021 to March 2022.He has been a member of the CPC Committee of the Company since February 2022. Currently, he is a memberof the CPC Committee and the Chairman of the Supervisory Committee of the Company.
(13) Mr. Zhang Xin, a master's degree holder. With his career starting in August 1991, he used to serve inthe Yibin Bureau of Finance, and the Yibin State-owned Assets Supervision and Administration Commission. Heonce was a Head of Section, Deputy Head of the Corporate Section, Full-time Deputy Secretary of the CPCCommittee and Head of the Asset Management Section of the Yibin Bureau of Finance. Currently, he is aSupervisor of the Company, a member of the CPC Committee and Deputy General Manager of YibinDevelopment Group, as well as the Secretary of the CPC Branch and Chairman of the Board of Sichuan SanjiangHuihai Finance Leasing Co., Ltd.
(14) Mr. Zhang Qing, a college degree holder and brewing engineer. He began to work at the Wuliangyedistillery in January 1983. He took the posts of Leader and Technician of the Brewing Team of the Workshop,Assistant Workshop Director, Assistant Head of the Production Management Department, Head of the ControlRoom, President of the Branch Labour Union, Workshop Director, President of the Labour Union, Supervisor,General Manager, and Director of Yibin Changjiangyuan Liquor Co., Ltd., and Deputy Head of the ProductionManagement Department of the Company. At present, he serves as Employee Supervisor and Head of theProduction Management Department of the Company.
(15) Mr. Wu Guoping, a bachelor's degree holder, auditor and senior sourcer. He began to work in August1989 and once served in Audit Bureau and Finance Bureau of Cuiping District, Yibin City, Yibin City Bureau of
Audit. He was transferred to the Company and served as the Deputy Director of the Audit Affairs Department inMay 2015, Employee Supervisor of the Company in June 2015, and Deputy Director of the Audit Department inJuly 2015. He now serves as an Employee Supervisor and the Deputy Director of the Audit and SupervisionDepartment of the Company, as well as a Supervisor of Wuliangye Group.
(16) Ms. Yang Yunxia, a bachelor's degree holder and Senior Political Mentor. She began to work at theWuliangye distillery in July 1991. She once held offices at Workshop 508, Workshop 513, the Audit Supervisionand Legal Affairs Department, and the Organization Department of the CPC Committee. She was DeputySecretary to the CPC Branch of Workshop 506 in August 2003 and Secretary of the CPC Branch of Workshop506 in December 2003. Ms. Yang Yunxia was an Employee Representative Supervisor of the Company betweenJune 2014 and June 2020 and Head of the Work Department of the CPC Committee of the Company betweenMay and July 2015. She started serving as the Head of the Mass Work Department of the Company in July 2015(concurrently, she was Deputy Secretary to the CPC Xingwen Committee between March 2016 and June 2018).She took the posts of Member of the CPC Committee, President of the Labour Union, and Head of the MassWork Department of the Company in June 2018, and of Member of the CPC Committee, Chairman of theSupervisory Committee, and Head of the Mass Work Department of the Group in December 2020. At present,she is a Member of the CPC Committee and General Engineer of the Company.
(17) Mr. Jiang Jia, a bachelor's degree holder and senior economist. He began to work in Wuliangyedistillery in July 1997 and once served as the Deputy General of the Sales Department, Deputy General of theBrand Affairs Department of Brand Distributors, Deputy Director and Director of the Strategic DevelopmentDepartment, and Chairman of Wuliangye Health Wine Company. He has served as a member of the CPCCommittee and Chief Economist of Wuliangye Group since April 2020. He is also a member of the CPCCommittee and the Chief Economist of the Company.
(18) Mr. Xie Zhiping, a master's degree holder. He began to work in August 1991. He took posts at theYibin Municipal Finance Bureau and Yibin Municipal Bureau of Statistics. He was a Member of the CPC Groupand Deputy Director of Yibin Municipal Finance Bureau, Secretary to the CPC Group and Director of the YibinMunicipal Bureau of Statistics, and Secretary to the CPC Group and Director of Yibin Municipal Finance Bureau.He became a Member of the CPC Committee and Chief Financial Officer of Wuliangye Group in February 2022.At present, he is a Member of the CPC Committee and Chief Financial Officer of the Company.
(19) Mr. Yue Song, a bachelor's degree holder and senior brewing technician. He started to work in theWuliangye Distillery in December 1995. He once served as the Deputy Director of the Office, Deputy Directorof the Office of the Board of Directors, Secretary of the CPC Branch, as well as Secretary of the CPC Branchand President of the Branch Labor Union of Workshop 505 and Workshop 523 of the Company, GeneralManager and President of the Branch Labor Union of Sichuan Wuliangye Culture Tourism Co., Ltd., Secretaryof the Party General Branch and Chairman of Yibin Changjiangyuan Liquor Co., Ltd., and General Engineer ofWuliangye Group. He is now a Deputy General Manager of the Company.
(20) Mr. Liu Yang, a bachelor's degree holder. He began to work in July 2001 and used to serve as theDirector of the Liaison Office of Yibin Municipal Government in Beijing. He is now a Deputy General Managerof the Company.
(21) Mr. Li Jian, a doctoral degree holder. He began to work in October 1995 and once served in theHousing and Urban-Rural Development Bureau of Changning County, Education and Sports Bureau of YibinCity, and Shunan Culture & Tourism Group. He once served as a member of the CPC Committee and DeputyGeneral Manager of Shunan Culture & Tourism Group. He is now a Deputy General Manager of the Company.
Offices held concurrently in shareholding entities:
? Applicable □ Not applicable
Name | Shareholding entity | Office held in the entity | Start of office term | End of office term | Paid by the entity or not |
Zeng Congqin | Wuliangye Group | Secretary of the CPC Committee and Chairman of the Board | No | ||
Liang Li | Yibin Development Group | Secretary of the CPC Committee and Chairman of the Board | Yes | ||
Xu Bo | Yibin Development Group | Director and General Manager | Yes | ||
Xiao Hao | Wuliangye Group | Deputy Secretary of the CPC Committee and Director | No |
Zhang Xin | Yibin Development Group | Member of the CPC Committee and Deputy General Manager | Yes |
Offices held concurrently in other entities:
? Applicable □ Not applicable
Name | Other entity | Office held in the entity | Start of office term | End of office term | Paid by the entity or not |
Jiang Lin | Wuliangye Group Finance | Director and Secretary of the CPC Branch | No | ||
Yibin Wuliangye Fund Management Co., Ltd., Sichuan Bank Company Limited, and Sichuan United Liquor Exchange Co., Ltd. | Director | ||||
Xie Zhihua | Beijing Technology and Business University | Professor | Yes | ||
BJB (Beijing) Information Technology Co., Ltd., China Non-ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., Sinochem Energy Co., Ltd., Yunnan Hongta Bank Co., Ltd., and Bank of Jiaxing Co., Ltd. | Independent Director | Yes | |||
Wu Yue | Southwestern University of Finance and Economics | Professor of School of Law | Yes | ||
Chengdu Corpro Technology Co., Ltd., Sichuan MIngxing Electric Power Co., Ltd., and Sichuan Jule Food Co., Ltd. | Independent Director | Yes | |||
Hou Shuiping | Sichuan Academy of Social Sciences | Research Fellow and Postdoctoral Co-supervisor | Yes | ||
Sichuan Yahua Industrial Group Co., Ltd., and Sichuan Shudao Equipment & Technology Co., Ltd. | Independent Director | ||||
Luo Huawei | Sichuan Agricultural University | Doctoral Supervisor | Yes | ||
Ya'an Development Investment Co., Ltd. | Outside Director | ||||
Sichuan Yahua Industrial Group Co., Ltd. | Independent Director | ||||
Zhang Xin | Sichuan Sanjiang Huihai Finance Leasing Co., Ltd. | Secretary of the CPC Branch and Chairman of the Board | No |
Punishments imposed in the recent three years by the securities regulator on the incumbent directors,supervisors and senior management as well as those who resigned in the Reporting Period:
□ Applicable ? Not applicable
3. Remunerations of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remunerations for directors,supervisors and senior management:
(1) Decision-making procedure
In accordance with the relevant rules of the higher organization and the Company, the remuneration plan forthe senior management of the Company is formulated, then submitted to the Remuneration and AppraisalCommittee under the Board of Directors for review, and then finalized by the Board of Directors.
(2) Basis for the determination of remunerations
In accordance with the relevant rules, the remunerations for directors, supervisors and senior managementare determined upon appraisal.
(3) Actual payments
Part of the base pay is given on a monthly basis, and part of the performance-related pay is given within theyear.
Remunerations of directors, supervisors and senior management during the Reporting Period
Unit: RMB'0,000
Name | Office title | Gender | Age | Status | Total before-tax remunerations from the Company | Paid by any related party or not |
Zeng Congqin | Chairman of the Board | Male | 54 | Incumbent | 92.91 | No |
Jiang Wenge | Vice Chairman of the Board and General Manager | Male | 56 | Incumbent | 97.78 | No |
Zhang Yu | Vice Chairman of the Board | Male | 48 | Incumbent | 66.94 | No |
Liang Li | Director | Female | 52 | Incumbent | Yes | |
Xu Bo | Director | Female | 55 | Incumbent | Yes | |
Xiao Hao | Director | Male | 46 | Incumbent | 24.47 | No |
Jiang Lin | Director, Deputy General Manager and Board Secretary | Female | 43 | Incumbent | 54.29 | No |
Xie Zhihua | Independent Director | Male | 63 | Incumbent | 10 | No |
Wu Yue | Independent Director | Male | 56 | Incumbent | 10 | No |
Hou Shuiping | Independent Director | Male | 67 | Incumbent | 6.8 | No |
Luo Huawei | Independent Director | Male | 53 | Incumbent | 6.8 | No |
Liu Ming | Chairman of the Supervisory Committee | Male | 52 | Incumbent | 57.89 | No |
Zhang Xin | Supervisor | Male | 53 | Incumbent | Yes | |
Zhang Qing | Employee Supervisor | Male | 57 | Incumbent | 37.33 | No |
Wu Guoping | Employee Supervisor | Male | 53 | Incumbent | 70.53 | Yes |
Yang Yunxia | Chief Engineer | Female | 51 | Incumbent | 51.25 | No |
Jiang Jia | Chief Economist | Male | 48 | Incumbent | 38.87 | No |
Xie Zhiping | CFO | Male | 54 | Incumbent | 3.57 | No |
Yue Song | Deputy General Manager | Male | 50 | Incumbent | 17.64 | No |
Liu Yang | Deputy General Manager | Male | 44 | Incumbent | 36.67 | No |
Li Jian | Deputy General Manager | Male | 48 | Incumbent | 35.95 | No |
Li Shuguang | Director | Male | 60 | Former | 92.91 | No |
Zou Tao | Vice Chairman of the Board | Male | 44 | Former | 41.78 | No |
Zhao Dong | Chief Engineer | Male | 58 | Former | 92.79 | No |
Luo Wei | Deputy General Manager and CFO | Male | 58 | Former | 89.37 | No |
Zhou Yousu | Independent Director | Male | 70 | Former | 5.8 | No |
Gan Shengdao | Independent Director | Male | 56 | Former | 9 | No |
Hu Jianfu | Supervisor | Male | 38 | Former | Yes | |
Cao Hongying | Employee Supervisor | Female | 56 | Former | 252.87 | No |
Liu Feng | Supervisor | Female | 53 | Former | Yes | |
Total | -- | -- | -- | -- | 1,304.21 | -- |
Notes: 1. During the Reporting Period, the Company settled the remuneration of some of the directors andsupervisors for the year 2020 and granted incentives to some of the incumbent directors and supervisors for the2019-2021 period.
2. Mr. Jiang Wenge was paid the additional remunerations for 2020 due to post and remunerationadjustments. Mr. Xiao Hao, Ms. Yang Yunxia, Ms. Jiang Lin, Mr. Xie Zhiping and Mr. Yue Song were on theCompany's payroll upon their appointment and on Wuliangye Group's payroll before their appointment. And Mr.Wu Guoping was given a pay of RMB44.7 thousand by Wuliangye Group.
VI Activities of Directors during the Reporting Period
1. Board Meetings Convened during the Reporting Period
Meeting | Date of the meeting | Disclosure date | Resolutions |
The 100th Meeting of the Fifth Board of Directors | 27 January 2022 | 29 January 2022 | See Announcement 2022/No. 001 |
The Second Meeting of the Fifth Board of Directors in 2022 | 18 February 2022 | 19 February 2022 | See Announcement 2022/No. 003 |
The Third Meeting of the Fifth Board of Directors in 2022 | 3 March 2022 | 5 March 2022 | See Announcement 2022/No. 004 |
The Fourth Meeting of the Fifth Board of Directors in 2022 | 17 March 2022 | N/A | The Proposal on Adjusting the Name and Construction Plan of the 120,000-ton Ecological Brewing Project (Phase I) was approved. |
The Fifth Meeting of the Fifth Board of Directors in 2022 | 18-19 April 2022 | 20 April 2022 | See Announcement 2022/No. 008 |
The Sixth Meeting of the Fifth Board of Directors in 2022 | 27 April 2022 | 29 April 2022 | See Announcement 2022/No. 011 |
The Seventh Meeting of the Fifth Board of Directors in 2022 | 19 May 2022 | 21 May 2022 | See Announcement 2022/No. 027 |
The First Meeting of the Sixth Board of Directors in 2022 | 27 May 2022 | 28 May 2022 | See Announcement 2022/No. 029 |
The Second Meeting of the Sixth Board of Directors in 2022 | 15 June 2022 | 17 June 2022 | See Announcement 2022/No. 032 |
The Third Meeting of the Sixth Board of Directors in 2022 | 6-7 July 2022 | 9 July 2022 | See Announcement 2022/No. 034 |
The Fourth Meeting of the Sixth Board of Directors in 2022 | 3-4 August 2022 | N/A | The following proposals were approved: the Proposal on the Star Rating and Awards for Retail Stores for H1 2022, the Proposal on the Report on the Establishment of the ―Group Purchase-based Sales‖ Project of Wuliangye Headquarters, and the Proposal on Wuliang NongXiang’s Wuliangye Culture Publicity and Promotion Plan for 2022. |
The Fifth Meeting of the Sixth Board of Directors in 2022 | 24 August 2022 | 26 August 2022 | See Announcement 2022/No. 035 |
The Sixth Meeting of the Sixth Board of Directors in 2022 | 29 August 2022 | N/A | The Proposal on the Plan for the Transfer and Disposal of Some Assets in Plastic F Section was approved. |
The Seventh Meeting of the Sixth Board of Directors in 2022 | 6 September 2022 | N/A | The Proposal on the Donation for the 6.8 Magnitude Earthquake Stricken Area in Luding County, Ganzi, Sichuan Province was approved. |
The Eighth Meeting of the Sixth Board of Directors in 2022 | 16 September 2022 | N/A | The Proposal on the Project of the Construction of a New Boiler Room in the Hongba New Park, among others, was approved. |
The Ninth Meeting of the Sixth Board of Directors in 2022 | 27-29 September 2022 | 30 September 2022 | See Announcement 2022/No. 040 |
The 10th Meeting of the Sixth Board of Directors in 2022 | 25-26 October 2022 | 28 October 2022 | See Announcement 2022/No. 041 |
The 11th Meeting of the Sixth Board of Directors in 2022 | 3-4 November 2022 | 5 November 2022 | See Announcement 2022/No. 043 |
The 12th Meeting of the Sixth Board of Directors in 2022 | 30 November-2 December 2022 | N/A | The Proposal on the Transfers of Physical Assets by Wuliangye Supply and Marketing and Liquor Sales was approved. |
The 13th Meeting of the Sixth Board of Directors in 2022 | 8-9 December 2022 | N/A | The following proposals were approved: the Proposal on Amendments to the Performance Appraisal and Remuneration Management Methods for Deputy Senior Management, and the Proposal on the Transfer of Equity Interests in Wuguchun Jiu Ye Co., Henan. China for No Compensation. |
The 14th Meeting of the Sixth Board of Directors in 2022 | 16 December 2022 | N/A | The Proposal on the Wuliangye 1618 Spring ―Crack a Bottle, Scan the Code, and Win a Prize‖ Activities was approved. |
2. Attendance of Directors at Board Meetings and General Meetings of Shareholders
Attendance of directors at board meetings and general meetings of shareholders | |||||||
Director | Total number of board meetings the director was supposed to attend | Board meetings attended on site | Board meetings attended by way of telecommunication or circulation | Board meetings attended through a proxy | Board meetings the director failed to attend | The director failed to attend two consecutive board meetings or not | General meetings of shareholders attended |
Zeng Congqin | 21 | 3 | 18 | 0 | 0 | No | 1 |
Jiang Wenge | 21 | 3 | 18 | 0 | 0 | No | 1 |
Zhang Yu | 14 | 2 | 12 | 0 | 0 | No | 1 |
Liang Li | 14 | 2 | 12 | 0 | 0 | No | 1 |
Xu Bo | 21 | 3 | 18 | 0 | 0 | No | 1 |
Xiao Hao | 14 | 2 | 12 | 0 | 0 | No | 1 |
Jiang Lin | 21 | 3 | 18 | 0 | 0 | No | 1 |
Xie Zhihua | 21 | 0 | 21 | 0 | 0 | No | 0 |
Wu Yue | 21 | 2 | 19 | 0 | 0 | No | 1 |
Hou Shuiping | 14 | 1 | 13 | 0 | 0 | No | 1 |
Luo Huawei | 14 | 1 | 13 | 0 | 0 | No | 1 |
Li Shuguang | 1 | 0 | 1 | 0 | 0 | No | 0 |
Zou Tao | 1 | 0 | 1 | 0 | 0 | No | 0 |
Zhou Yousu | 7 | 1 | 6 | 0 | 0 | No | 1 |
Gan Shengdao | 7 | 1 | 6 | 0 | 0 | No | 1 |
Explanation of why any director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate whether any director raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
4. Other Information about the Activities of Directors
Indicate whether any recommendation from directors was adopted by the Company.? Yes □ NoExplanation on adoption/rejection of recommendations of directors:
During the Reporting Period, in strict compliance with the applicable laws, regulations and the Articles ofAssociation, the directors of the Company performed their duties diligently, providing professional opinion orrecommendations for business decisions of the Company. They have played their part in protecting thelegitimate rights and interests of the Company and its shareholders.VII Activities of Special Committees under the Board of Directors during the ReportingPeriodThe Board of Directors of the Company has set up five special committees, including the StrategyCommittee, the Audit Committee, the Nomination Committee, the Remuneration and Appraisal Committee, andthe Comprehensive Budget Management Committee.
1. Strategy Committee
As per the relevant requirements of the Implementation Rules for the Strategy Committee, the StrategyCommittee convened two meetings during the Reporting Period, mainly receiving briefings on key workprogress in the first half of the year and the implementation plan for the high-quality development and fast-growth programme, studying the report of the 20
th
CPC Congress, and studying the Report on Accelerating theHigh-quality Development of the Baijiu Industry jointly issued by the Yibin Municipal CPC Committee and theYibin Municipal Government.
2. Audit Committee
As per the relevant requirements of the Implementation Rules for the Audit Committee, the AuditCommittee was diligent and responsible in performing the responsibilities required by the rules in the ReportingPeriod: (1) conducting a reminder on the audit of the 2021 annual financial statements upon the First Meeting ofthe Audit Committee under the Fifth Board of Directors in 2022; (2) reviewing, for the first time, the summaryfinancial statements of 2021 prepared by the Department of Finance of the Company before the entry of thecertified public accountants for the annual audit, and providing written review pinion at the Second Meeting ofthe Audit Committee under the Fifth Board of Directors in 2022; (3) reviewing, for the second time, the 2021annual financial statements of the Company, and providing written review pinion at the Third Meeting of theAudit Committee under the Fifth Board of Directors in 2022; (4) reviewing and approving the Proposal on theRe-appointment of the CPA Firm for 2022, the Summary of the Audit on the Financial Statements and InternalControl of 2021, the Independent Auditor’s Reports on the Financial Statements and Internal Control of 2021,the 2021 Internal Control Assessment Report, and the Deposit and Use of Raised Funds in 2021 at the FourthMeeting of the Audit Committee under the Fifth Board of Directors in 2022; (5) reviewing and approving theFirst Quarterly Report 2022 at the Fifth Meeting of the Audit Committee under the Fifth Board of Directors in2022; (6) reviewing and approving the Interim Report 2022 at the Sixth Meeting of the Audit Committee underthe Sixth Board of Directors in 2022; and (7) reviewing and approving the Third Quarterly Report 2022 at theSeventh Meeting of the Audit Committee under the Sixth Board of Directors in 2022.
3. Nomination Committee
The Nomination Committee convened six meetings in the Reporting Period according to the relevantprovisions of the Implementation Rules for the Nomination Committee, at which the following proposals wereapproved to be submitted to the Board of Directors for further review: the Proposal on the Election of ViceChairman of the Board and the Appointment of General Manager, the Proposal on New Director for the FifthBoard of Directors, the Proposal on the Appointment and Dismissal of Senior Management, and the Proposal onthe Appointment of Board Secretary.
4. Remuneration and Appraisal Committee
The Remuneration and Appraisal Committee convened two meetings in the Reporting Period according tothe relevant provisions of the Implementation Rules for the Remuneration and Appraisal Committee, and issuedopinions on the settlement of senior management’s 2020 annual remunerations and the prepayment of part of the
2022 annual remunerations (including the incentives for the 2019-2021 period) for senior management.
5. Comprehensive Budget Management Committee
The committee convened two meetings in the Reporting Period according to the Implementation Rules forComprehensive Budget Management Committee of the Company, and deliberated and approved the AnnualBudget Scheme 2022 and the Comprehensive Budget Adjustment Scheme 2022.VIII Activities of the Supervisory CommitteeIndicate whether the Supervisory Committee identified any risk to the Company during its supervision inthe Reporting Period.
□ Yes ? No
The Supervisory Committee raised no objections with respect to matters of the Company.IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at the period-end | 17,142 |
Number of in-service employees of major subsidiaries at the period-end | 8,322 |
Total number of in-service employees at the period-end | 25,464 |
Total number of paid employees in the Reporting Period | 25,464 |
Number of retirees to whom the Company as the parent and its major subsidiaries need to pay retirement pensions | 320 |
Functions | |
Function | Number of employees |
Production | 19,081 |
Sales | 1,145 |
Technical | 4,048 |
Financial | 198 |
Administrative | 992 |
Total | 25,464 |
Educational backgrounds | |
Educational background | Number of employees |
Junior college and beyond | 7,044 |
High school to junior college (exclusive) | 11,265 |
Middle school and below | 7,155 |
Total | 25,464 |
2. Remuneration Policy
The remuneration policies implemented by the Company are the Trial Measures for the Management ofTotal Wages of Municipal Supervised Enterprises in Yibin City (YGZW [2019] No. 205), and the Company'sInterim Provisions on Wage Management and the Trial Measures for the Management of Total Wages ofSubsidiaries.
3. Training Plans
In 2022, trainings organized by the Company centered on the strategy of "Reform, Innovation,Transformation, and Development", focused on the building of the talent team and strengthened the foundationof innovation and development. The Company carried out hierarchical and classified trainings with rich contentsand by flexible means based on the demand of the Company for reform and development and the demands ofemployees for diversified trainings, enhancing the planning, pertinency and effectiveness of training. In 2023,the Company plans to carry out 104 trainings at company level, 94 trainings at department level, 209 trainings atworkshop level, 46 skill trainings and 87 external trainings to provide strong human resources guarantee for thereform and innovation of the Company, so as to effectively match up with and promote strategic improvement ofthe Company and achievement of the annual operation objectives.
4. Labor Outsourcing
? Applicable □ Not applicableDuring 2022, the Company and its major majority-owned subsidiaries outsourced carriage, loading andunloading, temporary work, etc., for which they paid RMB214 million in total.
X Profit Distributions in the Form of Cash and/or SharesThe formulation, implementation and amendments to the profit distribution policy, especially the cashdividend policy, in the Reporting Period:
? Applicable □ Not applicableAccording to the 2021 Final Dividend Plan approved at the 2021 Annual General Meeting of Shareholders,the Company declared a cash dividend of RMB30.23 (tax inclusive) per 10 shares to shareholders based on thetotal 3,881,608,005 shares held by them. The independent directors issued their opinion on the final dividendplan, which was approved by the Board of Directors and then at the general meeting of shareholders. This finaldividend plan has been carried out on 29 June 2022.
Special statement about the cash dividend policy | |
In compliance with the Company’s Articles of Association and resolution of general meeting of shareholders | Yes |
Specific and clear dividend standard and ratio | Yes |
Complete decision-making procedure and mechanism | Yes |
Independent directors faithfully performed their duties and played their due role | Yes |
Non-controlling shareholders are able to fully express their opinion and desire and their legal rights and interests are fully protected | Yes |
In case of adjusting or altering the cash dividend policy, the conditions and procedures involved are in compliance with applicable regulations and transparent | Yes |
Indicate whether the Company fails to put forward a cash dividend plan despite the facts that the Companyhas made profit in the Reporting Period and the profit of the Company as the parent distributable to shareholdersis positive.
□ Applicable ? Not applicable
Final dividend plan for the Reporting Period:
? Applicable □ Not applicable
Bonus issue from profit (share/10 shares) | 0 |
Cash dividend/10 shares (RMB) (tax inclusive) | 37.82 |
Share base (share) | 3,881,608,005 |
Cash dividends (RMB) (tax inclusive) | 14,680,241,474.91 |
Cash dividends in other forms (such as share repurchase) (RMB) | 0.00 |
Total cash dividends (including those in other forms) (RMB) | 14,680,241,474.91 |
Distributable profit (RMB) | 52,952,968,888.03 |
Total cash dividends (including those in other forms) as % of the total profit to be distributed | 100.00% |
Applicable cash dividend policy | |
Where the Company is at a mature stage of development and has any substantial spending plan, total cash dividends shall account for at least 40% of the total profit to be distributed. | |
Final dividend plan in detail | |
As the 2022 final dividend plan, the Company intends to pay a cash dividend of RMB37.82 (tax inclusive) per 10 shares to shareholders based on the total share capital at the record date for the dividend payout, with the total amount to be distributed amounting to RMB14,680,241,474.91; and no bonus issue will be carried out, either from profit or capital reserves. |
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measuresfor Employees? Applicable □ Not applicable
1. Equity Incentives
Not applicable.Equity incentives received by directors and senior management:
□ Applicable ? Not applicable
Appraisal mechanism and incentives for senior management:
See ―Part IV, V, 3. Remunerations of Directors, Supervisors and Senior Management‖ herein.
2. Employee Stock Ownership Plans
? Applicable □ Not applicableOutstanding employee stock ownership plans during the Reporting Period:
Scope of employees | Number of employees | Total number of shares held under the plans | Change | As % of the total share capital of the Company | Funding source |
Employees covered by the plans | 2,428 | 23,696,280 | None | 0.61% | Self-pooled |
Shareholdings of directors, supervisors and senior management under employee stock ownership plansduring the Reporting Period:
In April 2018, the Company carried out an employee stock ownership plan through a private placement, andcertain in-service directors, supervisors and senior management participated in the employee stock ownershipplan. By the end of the Reporting Period, some non-transaction transfers had been completed.
Change of the asset management agency during the Reporting Period:
□ Applicable ? Not applicable
Equity changes incurred by the disposal of shares by any holder, etc. during the Reporting Period:
□ Applicable ? Not applicable
Exercise of shareholder rights during the Reporting Period:
□ Applicable ? Not applicable
Other information about the employee stock ownership plans during the Reporting Period:
? Applicable □ Not applicable
As approved at the first general meeting of holders under the employee stock ownership plan in 2021 andthe first meeting of the management committee of the employee stock ownership plan in 2021, the shares underthe employee stock ownership plan were transferred to the securities accounts of the holders by way of ―non-transaction transfer‖. As of the end of the Reporting Period, a total of 21.04 million shares have been transferredto 2,412 holders by way of ―non-transaction transfer‖ under the employee stock ownership plan.
As approved at the first general meeting of holders under the employee stock ownership plan in 2022 andthe Fifth Meeting of the Fifth Board of Directors in 2022, the duration of the employee stock ownership plan hasbeen agreed to be extended to 31 December 2023.
Changes to members of the management committees of employee stock ownership plans:
□ Applicable ? Not applicable
The financial impact of employee stock ownership plans on the Company and the relevant accountingtreatments during the Reporting Period:
□ Applicable ? Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable ? Not applicable
Other information: None.
3. Other Incentive Measures for Employees
□ Applicable ? Not applicable
XII Establishment and Implementation of Internal Controls during the Reporting Period
1. Establishment and Implementation of Internal Controls
In 2022, in accordance with the applicable laws and regulations such as the Company Law, the BasicCriteria of Enterprise Internal Control, and the Guidelines on the Compliance of the Operation of ListedCompanies, the Company continuously established institutional norms for Party building, business operation,risk control and post-event supervision, and continued to improve the internal control system.As per the relevant requirements, the Company conducts internal control self-assessment every year. It setup steering groups for internal control self-assessment to guide a total of 57 units including workshops,functional departments and subsidiaries to carry out internal control self-assessment work and at the same time,set up groups for random inspection of internal control to conduct random inspection on the construction andimplementation of the Company's internal control system, focused on major business segments such asprocurement, sales, and production, evaluated the rationality of the design and the effectiveness of the operationof the internal control system, so as to continuously optimized internal control. The evaluation results showedthat no material and significant deficiency was identified in the internal control system.In the future, the Company will continue to strengthen internal control training, reinforce the awareness ofcompliance in operation, enhance the risk prevention capability and effectively promote the steadyimplementation of its strategies.
2. Material Defects in Internal Control Identified during the Reporting Period
□ Yes ? No
XIII Management and Control of Subsidiaries during the Reporting Period
Name of company | Integration plan | Integration progress | Problems encountered in the integration | Measures taken | Progress | Subsequent plan |
N/A |
XIV Self-assessment Report or Independent Auditor’s Report on Internal Control
1. Self-assessment Report on Internal Control
Date of full disclosure of the internal control assessment report | 29 April 2023 | ||
Index of full disclosure of the internal control assessment report | http://www.cninfo.com.cn | ||
Ratio of the total assets of the organizations included in the assessment to the Company's consolidated total assets | 100.00% | ||
Ratio of the operating revenue of the organizations included in the assessment to the Company's operating revenue in the consolidated financial statements | 100.00% | ||
Deficiency identification criteria | |||
Category | Financial report | Non-financial report | |
Qualitative criteria | 1. Material deficiencies: (1) correction by the Company of the financial statement which have been published. (2) major misstatements found by the external auditor in current financial statements which have not been identified. (3) corrupt practice of directors, supervisors, and officers found by the external auditor. (4) ineffective supervision of internal control by the Company's internal audit department. (5) material deficiencies previously found but were not corrected within a reasonable period or were ineffectively corrected. 2. Significant deficiencies: (1) failure to select and apply accounting policies in accordance with generally accepted accounting policies. (2) failure to effectively control irregular (non-repeating) or complicated transactions. (3) failure to effectively control the anti-corrupt work. (4) ineffective internal control over the financial report at the end of the period. | 1. Material deficiencies: (1) in violation of national laws, regulations, or normative documents. (2) unscientific enterprise decision-making procedure, such as wrong decision, which causes failure of major transactions. (3) loss of management personnel or technician of important posts. (4) lack of institutional control or systematic failure of the institution for important businesses, and existing but ineffective operation of institutional guidance for internal control of important economic business. (5) failure to correct material deficiencies within a reasonable period. 2. Significant deficiencies: (1) property loss not reaching or exceeding the level of materiality but should be noticed by the Board of Directors and the management in nature. (2) individual events criticized by government departments, causing moderate negative influence on reputation of the Company. (3) violation of internal rules and |
3. General deficiencies: deficiencies other than material deficiencies and significant deficiencies are recognized as general deficiencies. | regulations of the enterprise and causing losses. (4) deficiency in important business mechanism or system. 3. General deficiencies: deficiencies in internal control other than material deficiencies and significant deficiencies are general deficiencies. | |
Quantitative criteria | 1. Material deficiencies: misstatement amount >3% of total operating revenue; misstatement amount >10% of net profit; misstatement amount >3% of total assets. 2. Significant deficiencies: 1% of total operating revenue < misstatement amount ≤3% of total operating revenue; 5% of net profit < misstatement amount ≤10% of net profit; 1% of total assets < misstatement amount ≤3% of total assets. 3. General deficiencies: misstatement amount ≤1% of total operating revenue; misstatement amount ≤5% of net profit; misstatement amount ≤1% of total assets. | 1. Material deficiencies: proportion of loss to net profit ≥5%. 2. Significant deficiencies: 3%≤ proportion of loss to net profit <5%. 3. General deficiencies: proportion of loss to net profit <3%. |
Number of material deficiencies in financial reports | 0 | |
Number of material deficiencies in non-financial reports | 0 | |
Number of significant deficiencies in financial reports | 0 | |
Number of significant deficiencies in non-financial reports | 0 |
2. Independent Auditor’s Report on Internal Control
? Applicable □ Not applicable
Opinion paragraph | |
Sichuan Huaxin (Group) CPA (LLP) is of the opinion that the Company maintained, in all material respects, effective internal control over financial reporting as of 31 December 2022, based on the Basic Rules on Enterprise Internal Control and other applicable regulations. | |
Report disclosed or not | Disclosed |
Disclosure date | 29 April 2023 |
Index to the disclosed report | http://www.cninfo.com.cn |
Type of opinion | Unmodified unqualified opinion |
Material defects in internal control not related to financial reporting | N/A |
Indicate whether any modified opinion is expressed in the Independent Auditor’s Report on Internal Control.
□ Yes ? No
Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal controlself-assessment report issued by the Company’s Board of Directors.? Yes □ NoXV Remediation of Problems Identified by Self-inspection in the Special Action on theGovernance of Listed Companies
During the Reporting Period, the Company actively promoted the re-election of the Board of Directorsaccording to the prescribed procedure. On 27 April 2022, the Proposal on the Re-election of the Board ofDirectors was approved at the Sixth Meeting of the Fifth Board of Directors in 2022. On 27 May 2022, theProposal on the Re-election of the Board of Directors was approved at a general meeting. As such, the re-election of the Board of Directors has been completed.
Part V Environmental and Social Responsibility
I Major Environmental IssuesIndicate whether the Company or any of its subsidiaries was identified as a major polluter by environmentalauthorities.? Yes □ No
1. Policies and Industry Standards on Environmental Protection
The Company strictly complies with the laws and regulations on environmental protection and hasidentified and collected 218 laws, regulations, rules, and standards on environmental protection, such as theEnvironmental Protection Law of the People's Republic of China, the Law of the People's Republic of China onPromoting Clean Production, the Law of the People's Republic of China on Water Pollution Prevention andControl, the Law of the People's Republic of China on Atmospheric Pollution Prevention and Control, and theLaw of the People's Republic of China on the Prevention and Control of Solid Waste Pollution, formulated 15policies on corporate environmental protection management, and developed the relevant internal controlstandards Brewery Wastewater Discharge Standards. The Company has implemented the requirements forenvironmental protection throughout its operation.
2. Administrative Licenses of Environmental Protection
The Company was granted the pollutant discharge license valid between November 2019 and November2024 in accordance with the national pollutant discharge license management regulations. The new, renovationand expansion projects of the Company all met the requirements of laws and regulations, such as the nationalenvironmental protection law and the environmental impact assessment law, went through the environmentalimpact assessment and approval process before commencement, and carried out environmental protectionacceptance after completion. Additionally, all pollution governance facilities ran stably, and pollutants weredischarged in compliance with standards, satisfying the requirement for total emission control.
3. Industry Discharge Standards and Discharge of Pollutants in Production and Operation
Name of the Company or subsidiary | Type of major pollutants | Major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration/intensity | Governing discharge standards | Total discharge (metric ton) | Approved total discharge (metric ton) | Excessive discharge |
The Company | Water pollutants | COD | Direct discharge | 1 | Discharge outlets at Wuliangye Ecological Wetland | 19.55mg/l | Table 1 of the Discharge Standard of Water Pollutants in Minjiang and Tuojiang Rivers(DB51/2311-2016) | 84 | 132 | None |
Ammonia nitrogen | 0.34mg/l | 1.5 | 9.9 | None | ||||||
Total nitrogen | 6.98mg/l | 30 | 49.5 | None | ||||||
Total phosphorus | 0.24mg/l | 1 | 1.65 | None | ||||||
Air pollutants | Particulate matter | Organized and intermittent discharge | 18 | Natural gas boilers (Phase I) 1#-9# | 1.34 mg/m? | Table 3 of the Emission Standard of Air Pollutants for Coal-burning Oil-burning Gas-fired Boiler | 0.17 | N/A | None | |
Natural gas boilers (Phase II) 10#-15# | 1.19 mg/m? | 0.16 | N/A | None | ||||||
Natural gas boilers (Phase | 1.17 mg/m? | 0.04 | N/A | None |
III) 16#-18# | (GB13271-2014) | |
5 | Hot water boilers 1#-5# | 1.12 mg/m? | 0.1 | N/A | None | ||||
20 | Broken leaven outlets 1#-20# | 17.35 mg/m? | Table 2 of the Integrated Emission Standard of Air Pollutants(GB16297-1996) | 9.04 | N/A | None | |||
18 | Grain processing outlets 1#-18# | 18.72 mg/m? | 6.16 | N/A | None | ||||
Air pollutants | Sulfur dioxide | Organized and intermittent discharge | 18 | Natural gas boilers (Phase I) 1#-9# | Not detected | Table 3 of the Emission Standard of Air Pollutants for Coal-burning Oil-burning Gas-fired Boiler(GB13271-2014) | 0.9 | N/A | None |
Natural gas boilers (Phase II) 10#-15# | Not detected | 0.75 | N/A | None | |||||
Natural gas boilers (Phase III) 16#-18# | Not detected | 0.2 | N/A | None | |||||
5 | Hot water boilers 1#-5# | Not detected | 0.0009 | N/A | None | ||||
Air pollutants | Oxynitride | Organized and intermittent discharge | 18 | Natural gas boilers (Phase I) 1#-9# | 50.42 mg/m? | Table 3 of the Emission Standard of Air Pollutants for Coal-burning Oil-burning Gas-fired Boiler(GB13271-2014) | 43.1 | 92.5 | None |
Natural gas boilers (Phase II) 10#-15# | 51.70 mg/m? | 32.2 | 50.3 | None | |||||
Natural gas boilers (Phase III) 16#-18# | 49.33 mg/m? | 12.3 | 20.1 | None | |||||
5 | Hot water boilers 1#-5# | 84.45 mg/m? | 0.3 | 0.5 | None |
4. Treatments of Pollutants
The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone inthe Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewatertreatment. The advanced treated tailwater is discharged after being treated by ecological wetlands and is undergood condition.At present, the Company has built 18 natural gas boilers (20t/h) in the Jiangbei industrial park and put theminto operation, which adopt the advanced low-NOx combustion technology of first-line brands of German andrun normally. The leaven production line is equipped with 20 bag-type dust collectors, and the grain processingproduction line is equipped with 18 bag-type dust collectors, all of which run normally.
5. Contingency Plan for Environmental Emergencies
The Company has formulated the Comprehensive Response Plan for Environmental Emergencies, whichhas been filed with Yibin Environmental Protection Bureau after expert review. On 2 November 2022, theCompany carried out the "Emergency Drill for Environmental Emergencies", which tested the emergencyresponse, the effectiveness of response measures and the organization and coordination ability under emergencysituations, and laid a solid foundation for the construction of the Company's emergency response system.
6. Environmental Self-Monitoring Plan
The Company strictly implements the self-monitoring requirements of the discharge permits and formulatesannual monitoring plans in accordance with the aforesaid requirements. As per the Self-monitoring andInformation Disclosure Measure for National Key Monitoring Enterprises (Trial), the Company discloses itsself-monitoring plans, annual reports and self-monitoring data to the public on the pollutant source monitoringinformation management and sharing platform of Sichuan Province.
7. Spending on Environmental Protection and Payment of Environmental Protection Tax
The Company spent a total of approximately RMB230 million on environmental protection projects andpollution control facilities and paid environmental protection tax of RMB388 thousand.
8. Measures Taken to Reduce Carbon Emissions in the Reporting Period and the Results
? Applicable □ Not applicable
The Company uses biogas generated from wastewater treatment to generate electricity with approximately
6.7 million kWh of electricity generated in this way in 2022, reducing greenhouse gas emissions byapproximately 3,500 tons.
9. Administrative Penalties Imposed for Environmental Issues during the Reporting Period
Company name or subsidiary name | Reason for penalty | Regulation violated | Penalty | Impact on the Company | Remediation measures |
N/A |
10. Other Environmental Information that should Be Disclosed
The Company implemented relevant requirements of the Administrative Measures for the Legal Disclosureof Enterprise Environmental Information and disclosed basic corporate information, environmental managementinformation, information on pollutant generation, governance, and discharge, and ecological and environmentalemergency information in the Management System of Sichuan Province for the Legal Disclosure of CorporateEnvironmental Information. Additionally, according to the self-monitoring plan, the Company disclosed the dataon pollutant discharge self-monitoring via the Pollution Source Monitoring Information Management andSharing Platform of Sichuan Province.
11. Other Environmental Information
The Company's environmental management system ran continuously and effectively. Additionally, theCompany carried out an integrated internal audit of environmental and energy management systems. TheCompany also engaged a third-party institution to re-certify and externally audit its energy and environmentalmanagement systems as per the management requirements of the environmental management system andsuccessfully passed the external audit. Moreover, China Quality Certification Centre was appointed by theCompany to audit the Company's green gas discharge report and issue a third-party audit statement.II Corporate Social Responsibility (CSR)
For details, please refer to the Environmental, Social and Governance Report 2022 disclosed by theCompany on 29 April 2023.III Efforts in Poverty Alleviation and Rural Revitalization
1. Efforts in Poverty Alleviation and Rural Revitalization
The year 2022 witnessed the convening of the 20th National Congress of the Communist Party of China,was the first year of the second centennial goal, and was a crucial year for the "14th Five-Year Plan". Accordingto the arrangements of the CPC Sichuan Provincial Committee, the People's Government of Sichuan Province,the CPC municipal committee, and the People's Government of Municipality, for an effective and smoothtransition in consolidating and expanding the achievements in poverty alleviation and rural revitalization,Wuliangye provided targeted assistance for Litang County, Ganzi Prefecture and Pingshan County, Yibin City.Adhering to the "Company's investment, professional operation, and benefiting all" assistance philosophy,Wuliangye carried out assistance work in depth and solidly with a focus on industrial development, marketexpansion, and governance improvement. This earned the Company a number of honours, such as "ProgressiveGroup in Paired Assistance of the Province", "The 17th People's Enterprise Social Responsibility Awards of thePeople's Daily Online: Rural Revitalization Prize", "China Agriculture-Rural Revitalization ExtraordinaryContribution Award", and "Best Practice Case in Rural Revitalization" (China Association for Public Companies)Concurrently, the assisted counties were included among the key, excellent assisted counties in the ruralrevitalization of the province, and the assisted villages were selected as the demonstration villages in the ruralrevitalization of the province and "civilized demonstration villages" and "Six Free" safe villages of Yibin City.
(1) Promoted base construction and the prosperity of featured local industries
Industrial development is crucial to rural revitalization. The Company, based on the resource endowment,industrial foundation, and people's development willingness of the assisted regions, earnestly promoted thedevelopment and expansion of featured industries, thereby helping "local specialities" grow. First, achievementsin the construction of the polar fruit and vegetable (lentinus) industrial base of Wuliangye were consolidated andexpanded. On the basis of the previous development of the industrial base, Wuliangye made strenuous efforts tocement the foundation and establish platforms and built up momentum and strength for expanding marketingchannels, strengthening the endogenous driving force, and extending industrial chains. At present, the basecovers an area of 42 mu and boasts an annual yield of 700,000 bags of lentinus, 100,000 jin of dried lentinus,300,000 rods of agaric, and 50,000 jin of dried agaric. It achieves a scale output value of more than RMB15million. With an industrial system that integrates production, supply, and marketing, the base provided nearly 80jobs in 2022, and the gross pay for its employees surpassed RMB0.8 million. Moreover, the base distributed
more than RMB0.5 million in dividends in 2022 to farmers and herdsmen. Second, the "vegetable basket"vegetable supply base in Litang County was upgraded. Based on Litang County's strengths in location, arableland, and agricultural industry, Wuliangye empowered the resource endowment, attracted leading enterprises,tapped into land resources and assets, and cultivated new agricultural entities. Relying on the "assisting unit +leading enterprise + village collective + farmer" development mode, Wuliangye established a vegetable supplybase that covered an area of nearly 500 mu in Mula Town, Litang County, removing the bottlenecks in masslabour and technical management. Additionally, it helped each household improve garden planting efficiency.Through experiments and trial planting, Wuliangye helped the vegetable park in Naisha Village successfully testmore than 20 varieties, achieving an output value of more than RMB3 million, providing jobs for over 6,000people, paying total wages of nearly RMB0.8 million, and improving the average household income by morethan RMB0.012 million. Third, the cultivation of featured industries based on mountains and woodland inPingshan County was expedited. Wuliangye donated a total of nearly RMB3 million in industrial developmentfunds. Based on the natural conditions and tea industry foundation of Yingxiong Village, Qingping Yi EthnicTownship assisted, Wuliangye introduced high-mountain tea strains and adopted equal-height platforms, roadand water supporting facilities, and ecological cultivation to effectively conserve water and soil and improve thesoil and ecological environment. Additionally, Wuliangye encouraged villagers in Yingxiong Village to plant teaspontaneously. It boosted the tea industries of townships and towns around Qingping Yi Ethnic Township bydeveloping a "fan-out" high-mountain tea industrial radiation belt. So far, 700,000 tea seedlings have beenplanted by 71 households, contributing to the sustainability of the collective economy and the stable income offarmers. Fourth, efforts were made to promote the sustainable development of local bamboo and tea industries.Wuliangye vigorously procured nearly 700,000 tons of bamboo raw materials from Yibin, boosting the fineprocessing of the bamboo industry and the sustainability of the industry, converting the strengths in bambooresources into regional development strengths, and giving full play to the role of the bamboo industry in boostingfarmers' income. Additionally, Wuliangye procured nearly RMB10 million of tea raw materials from Yibin,vigorously promoting industrial development and farmers' income.
(2) Made unremitting efforts in promoting consumer spending on agricultural specialities,increasingly broadening the prospects of the agricultural speciality marketPromoting consumer spending is a critical initiative in consolidating and expanding the achievements inpoverty alleviation and promoting full rural revitalization. It is also crucial to helping regions lifted out ofpoverty improve the quality and efficiency of their featured industries and stimulate the endogenous drivingforce of local development. Adhering to the market-oriented strategy, the Company made "promoting consumerspending" a vital driver of rural revitalization and common prosperity through the external and internalconnection and online and offline combination, thereby stimulating the vitality of economic growth. First,domestic sales strengths were fully leveraged. Throughout the year, Wuliangye purchased dozens of categoriesof agricultural specialities from Litang County and Pingshan County, including lentinus, agaric, yak meat, honey,and bamboo shoots, through normalized purchasing instead of donations, centralized procurement in importantsolar terms, pre-purchase orders of canteens, and launching in the "Wuliangye Family" app, with a total purchaseamount of nearly RMB10 million. Second, platform resources were fully used. In collaboration with largebusinesses such as Fresh Hema, Wuliangye helped introduce products from the assisted regions such as lentinusand agaric into local supermarkets in Zhuhai and exhibit such products at fairs such as the fair of the ChinaAgricultural Brand Annual Ceremony and the Agricultural Expo, contributing to the expansion of the externalmarkets of such products.
(3) Focused on the leadership of Party building and significantly raised the efficiency of ruralgovernance
Rural governance is the foundation of national governance, and effective governance guarantees ruralrevitalization. Wuliangye has been raising the efficiency of grassroots governance by upholding the leadership ofhigh-quality Party building. It has been strengthening the political and organizational roles of the Partyorganizations in rural areas to boost the modernization of grassroots governance. First, the building of grassrootsParty organizations was enhanced. In 2022, a donation of RMB0.2 million was arranged for Litang and Pingshancounties, respectively, to strengthen the development of grassroots Party organizations. To this end, grassrootspositions were enhanced by strengthening standard, normative, and information-based development of Partybranches, and an efficient operation mechanism featuring "co-development of organization positions, co-management of education of Party members, co-arrangements for activities, co-promotion of things for people,and win-win through scientific development" was developed. Second, paired assistance was deepened. The Partycommittee of Wuliangye vigorously supported the paired co-development of the grassroots Party branches of theCompany's subordinate agencies and the assisted villages. To constantly improve the leadership, innovation, andstrength of grassroots Party organizations, Wuliangye regularly stationed the steering groups of Party building in
the paired villages, supported grassroots Party building, the cultivation of reserve forces, competence and qualityimprovement, and guided Party branches to implement policies such as "Three Sessions and One Class",democratic life meetings, and heart-to-heart talks. Additionally, Wuliangye's basic militia brigade and the militiaplatoon of Qingping Yi Ethnic Township carried out paired co-development events. Specifically, more than 500sets (pieces) of equipment and other emergency supplies, including tents and go bags, were donated to QingpingYi Ethnic Township to boost its capabilities of responding to disasters, including floods and earthquakes.
(4) Persisted in project promotion to solidify the support and protection of rural developmentLocal educational and cultural development and talent support are critical for rural development. Hence,Wuliangye persists in refining assistance projects through down-to-earth efforts and improving quality andefficiency through work promotion, thereby providing firm and vigorous support and protection for long-termlocal development. First, dedicated educational and talent donations were made. Wuliangye donated RMB2million to the "Wuliangye Education Fund" educational aid activity in order to boost local educational causesthrough concrete actions. It also explored the educational and talent development in the assisted regions throughvisits, seminars, and site research. Concurrently, RMB0.3 million in assistance funds was donated to Litang andPingshan counties, respectively, to set up the "Wuliangye Love: Litang Talent Development Fund" and"Wuliangye Love: Pingshan Talent Development Fund". To help cultivate and leverage local talent, Wuliangyegranted more than 50 university students in need grants in 2022. It continued to donate RMB0.06 million to the"Compassionate Student Financial Aid Fund Package" project of Yibin City, sending hundreds of compassionatestudent financial aid fund packages to Qingping Yi Ethnic Primary School. Moreover, the assistance role ofresident cadres was fully capitalized on in coordinating and integrating resources. Specifically, charitableorganizations were invited to carry out caring activities in Starbase School, including donating more than 2,500sets (pieces) of school, life, cultural, and sports goods equivalent to approximately RMB0.25 million, therebyhelping students grow and succeed. Second, social civility development was advanced. Wuliangye vigorouslyguided people in the assisted regions to develop new social civility. It encouraged villagers from the assistedvillages in Litang and Pingshan counties to go to Wuliangye. Additionally, Wuliangye capitalized on thecultivation methods of the corporate culture to help the assisted villages refine and develop values and culturesthat have a rich rustic flavour and will inspire people to work hard. Moreover, rustic culture publicity platformswere established to guide the abolishment of outmoded conventions and customs using healthy corporate culture.Vigorous efforts were made to help explore and develop comparison-based appraisal and incentive channels,such as "Point Management", Moral Bank, and "Point Supermarket", to further stimulate the endogenous drivingforce of people lifted out of poverty. Third, assistance was provided for infrastructure upgrading. Thanks tostrenuous efforts, Wuliangye's resident cadres helped the assisted villages secure RMB1.4 million in the roadconstruction fund to broaden the village industry roads and RMB0.3 million to repair the landslide roads. Byimproving the road infrastructure, the travelling trouble plaguing people was resolved, and the industrialdevelopment foundation was solidified.
2. Efforts in Green Development and Employment Security
Wuliangye vigorously fulfilled social responsibility with a higher political stance and a stronger politicalsense.
(1) Adhered to the green development path that puts ecology first
First, the upstream sense was strengthened, and ecological restoration was implemented. Wuliangye hasalways been an advocate of the ecological civilization philosophy. It has been strengthening its big-pictureawareness and upstream sense and redoubling efforts to fulfil upstream responsibilities. Second, organizationalconstruction was strengthened to solidify basic guarantees. Wuliangye established an EnvironmentalManagement Committee with Chairman as the leader to explore, arrange, guide, and coordinate the overallecological construction of the Company. An ecological environment inspection team was set up to strengtheninspections and evaluations, ensuring that all environmental protection targets are achieved and measuresimplemented. Third, wastewater was discharged in line with standards stricter than the national ones. Wuliangyeconstructed an environmental protection ecological wetland that integrated such functions as landscape,demonstration, and pollution treatment in 2018. By diverting the wastewater into the wetland and furtherreducing the volume of pollutants discharged through biodegradation, Wuliangye met the Standards for theDischarge of Water Pollutants in the Minjiang and Tuojiang River Basins in Sichuan Province (DB51 2311—2016) two years earlier. Concurrently, Wuliangye formulated and implemented the Brewery WastewaterDischarge Standards that is stricter than the national and Sichuan Provincial wastewater discharge indicators.Fourth, scientific plans were made to drive green development. To contribute to ecological and environmentalprotection of the upper reaches of the Yangtze River, Wuliangye formulated a "dual carbon" plan and the "14thFiver-Year Plan" for Comprehensive Energy based on the current development in combination with thenationally planned path, current technological development, and key development orientations.
(2) Firmly implemented employment security on all fronts
First, vigorous efforts were made to offer jobs. Wuliangye offered more than 1,000 jobs to fresh graduates,the disabled, people out of poverty, veterans, and dependents through campus recruitment, public recruitment,and flexible employment. Second, vigorous efforts were made to ensure stable employment. Wuliangye persistedin not downsizing or reducing salaries for the surplus staff caused by business optimization to enable allemployees to share the fruits of development. Third, vigorous efforts were made to integrate industries andeducation. Wuliangye vigorously strengthened cooperation and exchanges with local institutions of highereducation and carried out industry-education integration. Specifically, Wuliangye carried out joint cultivationand provided internships for university students to help students improve their employability and access morejobs. Additionally, it provided internships and jobs to bring in outstanding talent.
Part VI Significant Events
I Fulfillment of Undertakings
1. Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, aswell as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end? Applicable □ Not applicableOn 19 April 2018, the Company disclosed the Announcement on Undertakings Made in a Private Placement,which detailed the undertakings in five aspects made by the Company and its directors, controlling shareholderand actual controller as well as the directors and senior management who participated in the employee stockownership plan. During the Reporting Period, the aforesaid entities and personnel all strictly abided by theirundertakings.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was stillwithin the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable ? Not applicable
II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its RelatedParties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees for External Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Statement Made by the Board of Directors Regarding the Latest “Modified Opinion” ofan Independent Auditor on Financial Statements
□ Applicable ? Not applicable
V Statements Made by the Board of Directors, the Supervisory Committee and theIndependent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” onthe Financial Statements of the Reporting Period
□ Applicable ? Not applicable
VI Changes to Accounting Policies and Estimates and Correction of Material AccountingErrors Compared with Last Year
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VII Changes to the Scope of Consolidated Financial Statements Compared with Last Year
? Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020~2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,the Company has strengthened the disposal of less competitive business entities that are not part of its principaloperations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and YibinWuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
VIII Appointment and Dismissal of CPA Firm
Current CPA firm:
Name of the domestic CPA firm | Sichuan Huaxin (Group) CPA (LLP) |
The Company’s payment to the domestic CPA firm (RMB’0,000) | 136 (exclusive of the internal control audit fee) |
How many consecutive years the domestic CPA firm has provided audit service for the Company | 22 |
Names of the certified public accountants from the domestic CPA firm writing signatures on the independent auditor’s report | Li Wulin, Ye Juan, and Luo Guiqiu |
How many consecutive years the certified public accountants have provided audit service for the Company | Li Wulin: 2 years Ye Juan: 3 years Luo Guiqiu: 2 years |
Indicate whether the CPA firm was changed for the Reporting Period.
□ Yes ? No
CPA firm appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
? Applicable □ Not applicableThe Company re-appointed Sichuan Huaxin (Group) CPA (LLP) as the independent auditor for internalcontrol of the Company in 2022, with a payment of RMB600,000.IX Possibility of Delisting after the Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XI Significant Legal Matters
□ Applicable ? Not applicable
No such cases in the Reporting Period.XII Penalties and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Credit Standings of the Company as well as Its Controlling Shareholder and ActualController
? Applicable □ Not applicable
The Company as well as its controlling shareholder and actual controller were in good credit standingduring the Reporting Period.
XIV Significant Related-Party Transactions
1. Continuing Related-Party Transactions
? Applicable □ Not applicable
See ―5. Related-Party Transactions‖ under ―XI Related Parties and Related-Party Transactions‖ of Part X.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
? Applicable □ Not applicable
Making deposits:
Related party | Relationship | Upper limit of daily deposit (RMB’0,000) | Range of interest rate | Opening balance (RMB’0,000) | Amount incurred in the current period | Closing balance (RMB’0,000) | |
Total amount deposited (RMB’0,000) | Total amount withdrawn (RMB’0,000) | ||||||
Wuliangye Group Finance | Associate | 4,790,000.00 | 0.42%~3.5% | 3,463,584.01 | 1,400,901.25 | 1,360,052.09 | 3,504,433.17 |
Note: The amount incurred in the current period is presented on a net basis, which means such transactionsare eliminated as the same company withdrawing a deposit and making another deposit of a different kind, orcompanies included in the consolidated financial statements making transfers via Wuliangye Group Finance.Receiving loans: The Company received no loans from Wuliangye Group Finance during the ReportingPeriod.
Receiving credit (inclusive of discounting) or other financial services:
Related party | Relationship | Type of business | Line (RMB’0,000) | Amount incurred (RMB’0,000) |
Wuliangye Group Finance | Associate | Receiving credit | 1,000,000.00 | 87,200.00 |
Note: On 15 April 2022, the Company and Wuliangye Group Finance signed a supplementary agreement tothe Financial Service Agreement, agreeing to continue to implement in 2022 ―the Financial Service Agreementsigned between the Company and Wuliangye Group Finance on 2 April 2021‖, i.e. the daily total balance ofoutstanding loans and unused credit with Wuliangye Group Finance shall not exceed RMB10 billion in 2022.
The ―amount incurred‖ in the Reporting Period includes the discounted bank acceptance notes of RMB860million with Wuliangye Group Finance (annual interest rate: 1.85%; interest payment: RMB6.418 million; andundue bank acceptance notes as of the end of the Reporting Period: RMB581 million) and the bank acceptancenotes of RMB12 million issued by Wuliangye Group Finance (undue at 31 December 2022).
6. Transactions between Finance Companies Controlled by the Company and Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
7. Other Significant Related-Party Transactions
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XV Significant Contracts and Execution
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□ Applicable ? Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XVII Significant Events of Subsidiaries
? Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020~2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,the Company has strengthened the disposal of less competitive business entities that are not part of its principaloperations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and YibinWuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before | Increase/decrease in the current period (+/-) | After | |||||||
Number of shares | As % of total shares | New issue | Bonus issue from profit | Bonus issue from capital reserves | Other | Subtotal | Number of shares | As % of total shares | |
I Restricted shares | 110,244 | 0.00% | -28,146 | -28,146 | 82,098 | 0.00% | |||
1. Shares held by the state | |||||||||
2. Shares held by state-owned corporations | |||||||||
3. Shares held by other domestic investors | 110,244 | 0.00% | -28,146 | -28,146 | 82,098 | 0.00% | |||
Of which: Shares held by domestic corporations | |||||||||
Shares held by domestic individuals | 110,244 | 0.00% | -28,146 | -28,146 | 82,098 | 0.00% | |||
4. Shares held by overseas investors | |||||||||
Of which: Shares held by overseas corporations | |||||||||
Shares held by overseas individuals | |||||||||
II Unrestricted shares | 3,881,497,761 | 100.00% | 28,146 | 28,146 | 3,881,525,907 | 100.00% | |||
1. RMB-denominated ordinary shares | 3,881,497,761 | 100.00% | 28,146 | 28,146 | 3,881,525,907 | 100.00% | |||
2. Domestically listed foreign shares | |||||||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III Total shares | 3,881,608,005 | 100.00% | 3,881,608,005 | 100.00% |
Reasons for share changes:
? Applicable □ Not applicableThe share changes were mainly attributable to the expiry of the lockup periods for the shares held by formerdirectors, supervisors and senior management, the non-transaction transfers of shares to the incumbent directors,supervisors and senior management under the employee stock ownership plan, etc.Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
? Applicable □ Not applicableAs approved at the first general meeting of holders under the employee stock ownership plan in 2021 andthe first meeting of the management committee of the employee stock ownership plan in 2021, the shares underthe employee stock ownership plan were transferred to the securities accounts of the holders by way of ―non-transaction transfer‖. As of the end of the Reporting Period, a total of 21.04 million shares have been transferredto 2,412 holders by way of ―non-transaction transfer‖ under the employee stock ownership plan.
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per shareattributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the latestaccounting period, respectively:
□ Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to bedisclosed:
□ Applicable ? Not applicable
2. Changes in Restricted Shares
? Applicable □ Not applicable
Unit: share
Shareholder | Opening restricted shares | Increase in the current period | Unlocked in the current period | Closing restricted shares | Reason for restriction | Date of unlocking |
Yang Yunxia | 11,920 | Non-transaction transfer under the employee stock ownership plan | In accordance with the rules for restriction of shares held by incumbent senior management and supervisors | |||
Jiang Jia | 8,881 | |||||
Liu Ming | 4,549 | |||||
Yue Song | 7,364 | |||||
Zhang Qing | 9,547 | |||||
Wu Guoping | 17,545 | 13,195 | 30,740 | |||
Zhao Dong | 9,097 | Lockup of shares held by former senior management | In accordance with the rules for restriction of shares held by former senior management | |||
Peng Zhifu | 43,858 | 43,858 | Unlocking of shares held by former senior management and supervisors | 20220902 | ||
Tang Shengyun | 9,100 | 9,100 | 20220119 | |||
Cao Hongying | 7,740 | 7,740 | 20221125 | |||
Zhu Zhongyu | 11,501 | 11,501 | 20220119 | |||
Tang Bochao | 20,500 | 20,500 | 20220317 | |||
Total | 110,244 | 13,195 | 92,699 | 82,098 | -- | -- |
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
□ Applicable ? Not applicable
2. Changes in Total Shares and Ownership Structure, as well as Asset and Liability Structures
□ Applicable ? Not applicable
3. Existing Staff-Held Shares
□ Applicable ? Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
Number of ordinary shareholders at the period-end | 577,632 | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 473,366 | Number of preference shareholders with resumed voting rights at the period-end (if any) (see note 8) | 0 | Number of preference shareholders with resumed voting rights at the month-end prior to the disclosure of this Report (if any) (see note 8) | 0 | |||||
5% or greater shareholders or top 10 shareholders | ||||||||||||
Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge, marked or frozen | |||||
Status | Shares | |||||||||||
Yibin Development Holding Group Co., Ltd. | State-owned corporation | 34.43% | 1,336,548,020 | 1,336,548,020 | ||||||||
Sichuan Yibin Wuliangye Group Co., Ltd. | State-owned corporation | 20.40% | 791,823,343 | 791,823,343 | ||||||||
Hong Kong Securities Clearing Company Limited | Overseas corporation | 5.86% | 227,567,230 | 2,384,694 | 227,567,230 | |||||||
China Securities Finance Corporation Limited | Other | 2.38% | 92,385,936 | 92,385,936 | ||||||||
Bank of China Limited-China Merchants China Securities Baijiu Index Classification Securities Investment Fund | Other | 1.39% | 53,813,064 | 5,280,184 | 53,813,064 | |||||||
Central Huijin Asset Management Co., Ltd. | State-owned corporation | 1.01% | 39,325,400 | 39,325,400 | ||||||||
Bank of China Limited-E Fund Blue Chip Selected Mixed Securities Investment Fund | Other | 0.79% | 30,700,000 | 2,300,000 | 30,700,000 | |||||||
Industrial and Commercial Bank of China Limited-Invesco Great Wall Newly Growth Mixed Securities Investment Fund | Other | 0.57% | 22,233,100 | 1,268,990 | 22,233,100 | |||||||
China Life Insurance Company Limited-Traditional-General Insurance Product- | Other | 0.55% | 21,325,437 | -2,709,010 | 21,325,437 |
005L-CT001 Shenzhen | |||||||||||
Agricultural Bank of China Limited-E Fund Consumer Sector Stock Investment Fund | Other | 0.38% | 14,684,751 | 2,588,111 | 14,684,751 | ||||||
Strategic investor or general corporation becoming a top-10 shareholder in a rights issue (if any) (see note 3) | N/A | ||||||||||
Related or acting-in-concert parties among the shareholders above | Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin Development Group. And the Company is not aware of any related or acting-in-concert parties among the other public shareholders. | ||||||||||
Shareholders above entrusting/entrusted with or waiving voting rights | N/A | ||||||||||
Repurchased share account (if any) among the top 10 shareholders (see note 10) | N/A | ||||||||||
Top 10 unrestricted shareholders | |||||||||||
Name of shareholder | Unrestricted shares held at the period-end | Shares by class | |||||||||
Class | Shares | ||||||||||
Yibin Development Holding Group Co., Ltd. | 1,336,548,020 | RMB-denominated ordinary shares | 1,336,548,020 | ||||||||
Sichuan Yibin Wuliangye Group Co., Ltd. | 791,823,343 | RMB-denominated ordinary shares | 791,823,343 | ||||||||
Hong Kong Securities Clearing Company Limited | 227,567,230 | RMB-denominated ordinary shares | 227,567,230 | ||||||||
China Securities Finance Corporation Limited | 92,385,936 | RMB-denominated ordinary shares | 92,385,936 | ||||||||
Bank of China Limited-China Merchants China Securities Baijiu Index Classification Securities Investment Fund | 53,813,064 | RMB-denominated ordinary shares | 53,813,064 | ||||||||
Central Huijin Asset Management Co., Ltd. | 39,325,400 | RMB-denominated ordinary shares | 39,325,400 | ||||||||
Bank of China Limited-E Fund Blue Chip Selected Mixed Securities Investment Fund | 30,700,000 | RMB-denominated ordinary shares | 30,700,000 | ||||||||
Industrial and Commercial Bank of China Limited-Invesco Great Wall Newly Growth Mixed Securities Investment Fund | 22,233,100 | RMB-denominated ordinary shares | 22,233,100 | ||||||||
China Life Insurance Company Limited-Traditional-General Insurance Product-005L-CT001 Shenzhen | 21,325,437 | RMB-denominated ordinary shares | 21,325,437 | ||||||||
Agricultural Bank of China Limited-E Fund Consumer Sector Stock Investment Fund | 14,684,751 | RMB-denominated ordinary shares | 14,684,751 | ||||||||
Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin Development Group. And the Company is not aware of any related or acting-in-concert parties among the other public shareholders. | ||||||||||
Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | N/A |
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders ofthe Company conducted any promissory repurchase during the Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: controlled by a local state-owned organizationType of the controlling shareholder: corporation
Name of the controlling shareholder | Legal representative/person-in-charge | Date of incorporation | Organization code | Principal activities |
Yibin Development Holding Group Co., Ltd. | Liang Li | 4 August 1999 | 915115007118234259 | Capital and asset operations as authorized by the People’s Government of Yibin City |
Interests held in other domestically and overseas listed companies in the Reporting Period | Yibin Development Group directly held 171,401,846 shares (or 16.88%) in Yibin Tianyuan Group Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd. |
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: local state-owned assets management organizationType of the actual controller: corporation
Name of the actual controller | Legal representative/person-in-charge | Date of incorporation | Organization code | Principal activities |
The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin City | Xiang Junge | 24 February 2005 | N/A | N/A |
Interests controlled in other domestically and overseas listed companies in the Reporting Period | SASAC Yibin indirectly held 171,401,846 shares (or 16.88%) in Yibin Tianyuan Group Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd. |
Change of the actual controller in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Illustration of the relationship between the actual controller and the Company:
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
4. Indicate whether the cumulative number of shares held by the Company’s controlling shareholder orthe largest shareholder and its acting-in-concert parties that are in pledge accounts for over 80% of theirtotal shareholdings in the Company.
□ Applicable ? Not applicable
5. Other 10% or Greater Corporate Shareholders
? Applicable □ Not applicable
Name of corporate shareholder | Legal representative/person-in-charge | Date of incorporation | Registered capital | Principal activities |
Sichuan Yibin Wuliangye Group Co., Ltd. | Zeng Congqin | 12 August 1998 | RMB1,000,000,000 | Investment and investment management, asset management, and business management services |
6. Restrictions on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Undertaking Makers
□ Applicable ? Not applicable
IV Share Repurchases in the Reporting PeriodProgress on any share repurchase:
□ Applicable ? Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable ? Not applicable
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□ Applicable ? Not applicable
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion | Unmodified unqualified opinion |
Date of signing the independent auditor’s report | 27 April 2023 |
Name of the independent auditor | Sichuan Huaxin (Group) CPA (LLP) |
Number of the independent auditor’s report | Huaxin Audit (2023) No. 0068 |
Names of the certified public accountants | Li Wulin, Ye Juan, and Luo Guiqiu |
Independent Auditor’s ReportTo the Shareholders of Wuliangye Yibin Co., Ltd.:
I OpinionWe have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the―Company‖), which comprise the consolidated and parent company (the Company as the parent exclusive ofsubsidiaries) balance sheets as at 31 December 2022, the consolidated and parent company statements of income,cash flows and changes in owners’ equity for the year then ended, as well as the notes to the financial statements.In our opinion, the financial statements referred to above present fairly, in all material respects, theconsolidated and parent company financial position of the Company at 31 December 2022, and the consolidatedand parent company operating results and cash flows for the year then ended, in conformity with China’sAccounting Standards for Business Enterprises (CAS).
II Basis for OpinionWe conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for Audit ofFinancial Statements section of our report. We are independent of the Company in accordance with the ChinaCode of Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities inaccordance with the said Code of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.III Key Audit MattersKey audit matters are matters that, based on our professional judgment, are deemed most important to theaudit of the financial statements of the current period. These matters were addressed in the context of our auditof the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters. The key audit matters we identified in our audit are as follows:
Key audit matters | Audit response |
(I) Existence and integrity of monetary assets |
Please refer to notes to financialstatements "V. Notes to consolidatedfinancial statements, 1. Monetary assets".
As at 31 December 2022, thebalance of monetary assets of theCompany was RMB92,358.4270 million,accounting for 60.48% of the total assets.The safety of deposits and the accuracyand integrity of balance have greatimpact on the financial statements due tothe large amount of balance of monetaryassets and large number of bankaccounts. Therefore, we consider theexistence and integrity of monetaryassets as a key audit matter.
Please refer to notes to financial statements "V. Notes to consolidated financial statements, 1. Monetary assets". As at 31 December 2022, the balance of monetary assets of the Company was RMB92,358.4270 million, accounting for 60.48% of the total assets. The safety of deposits and the accuracy and integrity of balance have great impact on the financial statements due to the large amount of balance of monetary assets and large number of bank accounts. Therefore, we consider the existence and integrity of monetary assets as a key audit matter. | With respect of monetary assets, we conducted the following audit procedures: 1. Understood, tested, and evaluated key internal controls related to the management of monetary assets; 2. Obtained list of bank accounts opened, and checked the books of the Company against the bank account information and integrity of the bank accounts; 3. Obtained the bank statement and bank reconciliation for confirmation of the bank accounts, and controlled the process of confirmation; 4. Supervised the originals of certificate of time deposit, and paid attention to the holders of certificate of time deposit and other information; 5. Obtained credit report of the enterprise and checked whether the monetary assets are under mortgage, charge or frozen; 6. At the end of the period, the amount deposited with Sichuan Yibin Wuliangye Group Finance Co., Ltd. was RMB35,044.3317 million in total; the deposit and loan business of Sichuan Yibin Wuliangye Group Finance Co., Ltd. was checked. We believe that the above audit procedures can support the management of the Company in their determination of the existence and integrity of monetary assets. |
(II) Recognition of operating revenue | |
Please refer to notes to financial statement "V Notes to the Consolidated | With respect of operating revenue, we conducted the following audit procedures: 1. Understood, tested, and evaluated key internal controls related to the recognition of |
Financial Statements, 33. Operating revenue and cost of sales". The Company recorded operating revenue of RMB73,968.6407 million during 2022, which was the main source of the operating profit. And operating revenue is one of the key performance indicators. Therefore, we consider the recognition of operating revenue as a key audit matter. | operating revenue; 2. Selected samples to examine sales contracts and identify contractual terms and conditions relating to the transfer of control of goods in order to evaluate whether the time of recognition of operating revenue meets the requirements of the CAS; 3. Performed analytical review procedures to compare the key indicators such as sales volumes, unit sales prices, gross margins and major customers for the current period with the previous period to identify changes in key indicators and the reasonableness of the changes; 4. Performed detail testing by selecting samples of the revenue and transactions of the principal operations recorded during the year and examining supporting documentation such as sales contracts or orders, release orders, delivery notes, customer sign-off records, sales invoices, etc. to evaluate the authenticity and accuracy of operating revenue recognition; 5. Selected samples of sales transactions near the year-end and examined samples of relevant supporting documentation (including dispatch notes or customer acknowledgement of receipt) to assess whether operating revenue is recognised in the appropriate accounting period; and 6. Selected samples of major distributors in conjunction with the audit of contract liabilities to perform correspondence procedures to verify the amount of operating revenue for the period and the closing balance of contract liabilities and verify the authenticity and accuracy of the amount of operating revenue recognized by management. We believe that the above audit procedures can support the management of the Company in their determination of the recognition of operating revenue. |
IV Other InformationThe Company’s management is responsible for the other information. The other information comprises allof the information included in the Company’s 2022 Annual Report other than the financial statements and ourauditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financial statementsor our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial StatementsThe Company’s management is responsible for the preparation of the financial statements that give a fairview in accordance with CAS, and for designing, implementing and maintaining such internal control as themanagement determines is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern (if applicable) and usingthe going concern basis of accounting unless the management either intends to liquidate the Company or to ceaseoperations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with CAS will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmay cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required by CAS to draw users’ attention in our auditor’s report to the relateddisclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, futureevents or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We are responsible forthe direction, supervision and performance of the Company audit. We remain solely responsible for our auditopinion.
We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any noteworthy deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA (LLP) Chinese certified public accountant: Li Wulin
(engagement partner)Chengdu · China
Chinese certified public accountant: Ye Juan
Chinese certified public accountant: Luo Guiqiu
27 April 2023
II Financial Statements
Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated: RMB
1. Consolidated Balance Sheet
Prepared by Wuliangye Yibin Co., Ltd. Unit: RMB
Item | 31 December 2022 | 1 January 2022 |
Current assets: | ||
Monetary assets | 92,358,426,975.79 | 82,335,955,927.74 |
Settlement reserve | ||
Loans to other banks and financial institutions | ||
Held-for-trading financial assets | ||
Derivative financial assets | ||
Notes receivable | 119,918,307.60 | 23,859,058,132.07 |
Accounts receivable | 35,686,942.32 | 64,193,116.22 |
Receivables financing | 28,904,198,420.44 | 1,641,509,588.69 |
Prepayments | 135,982,868.14 | 195,652,974.42 |
Premiums receivable | ||
Reinsurance receivables | ||
Receivable reinsurance contract reserve | ||
Other receivables | 30,901,231.69 | 26,288,496.24 |
Of which: Interest receivable | ||
Dividends receivable | ||
Financial assets purchased under resale agreements | ||
Inventories | 15,980,657,013.57 | 14,015,067,118.25 |
Contract assets | ||
Assets held for sale | ||
Current portion of non-current assets | ||
Other current assets | ||
Total current assets | 137,565,771,759.55 | 122,137,725,353.63 |
Non-current assets: | ||
Loans and advances to customers | ||
Debt investments | ||
Other debt investments | ||
Long-term receivables | ||
Long-term equity investments | 1,986,387,524.78 | 1,911,228,653.63 |
Other equity investments | ||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
Investment property | ||
Fixed assets | 5,312,971,445.61 | 5,610,147,000.37 |
Construction in progress | 3,773,155,983.95 | 2,646,087,846.01 |
Productive living assets | ||
Oil and gas assets |
Right-of-use assets | 380,922,885.84 | 697,805,952.69 |
Intangible assets | 518,517,835.31 | 556,398,465.19 |
Development costs | ||
Goodwill | 1,621,619.53 | 1,621,619.53 |
Long-term prepaid expense | 158,586,327.06 | 155,512,345.82 |
Deferred income tax assets | 2,043,089,823.62 | 1,683,957,848.54 |
Other non-current assets | 972,502,674.97 | 219,127,135.72 |
Total non-current assets | 15,148,956,120.67 | 13,483,086,867.50 |
Total assets | 152,714,727,880.22 | 135,620,812,221.13 |
Current liabilities: | ||
Short-term borrowings | ||
Borrowings from the central bank | ||
Loans from other banks and financial institutions | ||
Held-for-trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | 887,970,376.53 | 872,040,239.87 |
Accounts payable | 7,246,802,709.58 | 5,403,561,392.95 |
Advances from customers | 16,160,671.49 | 10,970,385.19 |
Contract liabilities | 12,379,125,542.70 | 13,058,652,246.11 |
Financial assets sold under repurchase agreements | ||
Customer deposits and deposits from other banks and financial institutions | ||
Payables for acting trading of securities | ||
Payables for underwriting of securities | ||
Employee benefits payable | 3,375,526,829.88 | 3,335,937,141.30 |
Taxes and levies payable | 5,301,718,185.93 | 5,192,183,704.90 |
Other payables | 4,631,434,915.43 | 3,693,858,108.21 |
Of which: Interest payable | ||
Dividends payable | 13,191,392.99 | 37,436,404.82 |
Fees and commissions payable | ||
Reinsurance payables | ||
Liabilities directly associated with assets held for sale | ||
Current portion of non-current liabilities | 375,682,599.77 | 360,027,399.06 |
Other current liabilities | 1,544,723,419.34 | 1,688,367,639.42 |
Total current liabilities | 35,759,145,250.65 | 33,615,598,257.01 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term borrowings | ||
Bonds payable | ||
Of which: Preference shares | ||
Perpetual bonds |
Lease liabilities | 16,976,148.73 | 355,338,950.93 |
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | 254,416,864.75 | 257,991,368.32 |
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 271,393,013.48 | 613,330,319.25 |
Total liabilities | 36,030,538,264.13 | 34,228,928,576.26 |
Owners’ equity: | ||
Share capital | 3,881,608,005.00 | 3,881,608,005.00 |
Other equity instruments | ||
Of which : Preference shares | ||
Perpetual bonds | ||
Capital reserves | 2,682,647,086.15 | 2,682,647,086.15 |
Less: Treasury shares | ||
Other comprehensive income | ||
Specific reserve | ||
Surplus reserves | 28,432,198,524.98 | 23,866,103,395.72 |
General reserve | ||
Retained earnings | 79,028,605,172.04 | 68,638,139,859.37 |
Total equity attributable to owners of the Company as the parent | 114,025,058,788.17 | 99,068,498,346.24 |
Non-controlling interests | 2,659,130,827.92 | 2,323,385,298.63 |
Total owners’ equity | 116,684,189,616.09 | 101,391,883,644.87 |
Total liabilities and owners’ equity | 152,714,727,880.22 | 135,620,812,221.13 |
Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Yang Wentian
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item | 31 December 2022 | 1 January 2022 |
Current assets: | ||
Monetary assets | 51,104,448,387.06 | 43,723,114,772.56 |
Held-for-trading financial assets | ||
Derivative financial assets | ||
Notes receivable | 50,000.00 | |
Accounts receivable | ||
Receivables financing | ||
Prepayments | 33,048,447.08 | 32,605,050.85 |
Other receivables | 8,462,631,304.66 | 7,827,776,183.91 |
Of which: Interest receivable | ||
Dividends receivable | 2,126,718,123.00 | 1,153,154,780.16 |
Inventories |
Contract assets | ||
Assets held for sale | ||
Current portion of non-current assets | ||
Other current assets | ||
Total current assets | 59,600,128,138.80 | 51,583,546,007.32 |
Non-current assets: | ||
Debt investments | ||
Other debt investments | ||
Long-term receivables | ||
Long-term equity investments | 13,383,816,192.05 | 13,313,609,602.58 |
Other equity investments | ||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 |
Investment property | ||
Fixed assets | 100,713,555.25 | 97,722,498.48 |
Construction in progress | 115,870,542.48 | 114,160,542.48 |
Productive living assets | ||
Oil and gas assets | ||
Right-of-use assets | 1,948,611.38 | 3,757,317.38 |
Intangible assets | 38,664,783.59 | 41,628,936.23 |
Development costs | ||
Goodwill | ||
Long-term prepaid expense | ||
Deferred income tax assets | 1,082,797.53 | 1,108,475.08 |
Other non-current assets | ||
Total non-current assets | 13,643,296,482.28 | 13,573,187,372.23 |
Total assets | 73,243,424,621.08 | 65,156,733,379.55 |
Current liabilities: | ||
Short-term borrowings | ||
Held-for-trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payable | 1,134,674.42 | 1,134,674.42 |
Advances from customers | ||
Contract liabilities | ||
Employee benefits payable | 4,106,534.36 | 3,747,183.77 |
Taxes and levies payable | 277,283,965.88 | 65,068,408.85 |
Other payables | 146,366,462.73 | 154,169,154.25 |
Of which: Interest payable | ||
Dividends payable | ||
Liabilities directly associated with assets held for sale |
Current portion of non-current liabilities | 1,170,924.31 | 1,816,912.87 |
Other current liabilities | ||
Total current liabilities | 430,062,561.70 | 225,936,334.16 |
Non-current liabilities: | ||
Long-term borrowings | ||
Bonds payable | ||
Of which: Preference shares | ||
Perpetual bonds | ||
Lease liabilities | 1,170,924.31 | |
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | 500,000.00 | 500,000.00 |
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 500,000.00 | 1,670,924.31 |
Total liabilities | 430,562,561.70 | 227,607,258.47 |
Owners’ equity: | ||
Share capital | 3,881,608,005.00 | 3,881,608,005.00 |
Other equity instruments | ||
Of which: Preference shares | ||
Perpetual bonds | ||
Capital reserves | 2,682,647,086.15 | 2,682,647,086.15 |
Less: Treasury shares | ||
Other comprehensive income | ||
Specific reserve | ||
Surplus reserves | 13,295,638,080.20 | 11,333,854,390.82 |
Retained earnings | 52,952,968,888.03 | 47,031,016,639.11 |
Total owners’ equity | 72,812,862,059.38 | 64,929,126,121.08 |
Total liabilities and owners’ equity | 73,243,424,621.08 | 65,156,733,379.55 |
3. Consolidated Income Statement
Unit: RMB
Item | 2022 | 2021 |
I Total revenues | 73,968,640,704.54 | 66,209,053,612.11 |
Of which: Operating revenue | 73,968,640,704.54 | 66,209,053,612.11 |
Interest income | ||
Insurance premium income | ||
Fee and commission income |
II Total costs and expenses | 37,049,016,916.17 | 33,957,661,247.50 |
Of which: Cost of sales | 18,178,425,659.64 | 16,318,778,588.82 |
Interest costs | ||
Fee and commission costs | ||
Surrenders | ||
Net insurance claims paid | ||
Net amount provided as insurance contract reserve | ||
Expenditure on policy dividends | ||
Reinsurance premium expense | ||
Taxes and levies | 10,748,802,377.04 | 9,789,698,016.98 |
Selling expense | 6,844,237,013.17 | 6,503,506,131.90 |
Administrative expense | 3,068,119,268.45 | 2,899,968,867.37 |
R&D expense | 235,783,645.79 | 177,411,727.65 |
Finance costs | -2,026,351,047.92 | -1,731,702,085.22 |
Of which: Interest expense | 48,003,667.91 | 69,130,792.55 |
Interest income | 2,075,700,630.12 | 1,801,002,307.73 |
Add: Other income | 186,525,904.41 | 215,728,235.35 |
Return on investment (―-‖ for loss) | 92,571,951.15 | 97,346,566.33 |
Of which: Share of profit or loss of joint ventures and associates | 92,571,951.15 | 97,346,566.33 |
Income from the derecognition of financial assets at amortized cost | ||
Exchange gain (―-‖ for loss) | ||
Net gain on exposure hedges (―-‖ for loss) | ||
Gain on changes in fair value (―-‖ for loss) | ||
Credit impairment loss (―-‖ for loss) | -1,437,932.66 | -2,601,524.74 |
Asset impairment loss (―-‖ for loss) | -26,207,459.87 | -7,531,487.70 |
Asset disposal income (―-‖ for loss) | 3,347,202.23 | -1,905,183.84 |
III Operating profit (―-‖ for loss) | 37,174,423,453.63 | 32,552,428,970.01 |
Add: Non-operating income | 38,885,270.86 | 52,099,818.22 |
Less: Non-operating expense | 109,788,008.25 | 154,124,342.53 |
IV Gross profit (―-‖ for gross loss) | 37,103,520,716.24 | 32,450,404,445.70 |
Less: Income tax expense | 9,132,888,784.02 | 7,942,954,115.44 |
V Net profit (―-‖ for net loss) | 27,970,631,932.22 | 24,507,450,330.26 |
(I) By operating continuity | ||
1. Net profit from continuing operations (―-‖ for net loss) | 27,970,631,932.22 | 24,507,450,330.26 |
2. Net profit from discontinued operations (―-‖ for net loss) | ||
(II) By ownership | ||
1. Net profit attributable to owners of the Company as the parent | 26,690,661,397.42 | 23,377,074,353.40 |
2. Net profit attributable to non-controlling interests | 1,279,970,534.80 | 1,130,375,976.86 |
VI Other comprehensive income, net of tax | ||
Other comprehensive income, net of tax attributable to owners of the Company as the parent | ||
(I) Other comprehensive income that will not be reclassified to profit or loss | ||
1. Changes caused by remeasurements on defined benefit schemes | ||
2. Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
3. Changes in the fair value of other debt investments | ||
4. Changes in the fair value arising from changes in own credit risk | ||
5. Other | ||
(II) Other comprehensive income that will be reclassified to profit or loss | ||
1. Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
2. Changes in the fair value of other debt investments | ||
3. Other comprehensive income arising from the reclassification of financial assets | ||
4. Credit impairment allowances for other debt investments | ||
5. Reserve for cash flow hedges | ||
6. Differences arising from the translation of foreign currency-denominated financial statements | ||
7. Other | ||
Other comprehensive income, net of tax attributable to non-controlling interests | ||
VII Total comprehensive income | 27,970,631,932.22 | 24,507,450,330.26 |
Total comprehensive income attributable to owners of the Company as the parent | 26,690,661,397.42 | 23,377,074,353.40 |
Total comprehensive income attributable to non-controlling interests | 1,279,970,534.80 | 1,130,375,976.86 |
VIII Earnings per share: | ||
(I) Basic earnings per share | 6.876 | 6.023 |
(II) Diluted earnings per share | 6.876 | 6.023 |
Where business combinations involving entities under common control occurred in the current period, the net profit achieved by theacquirees before the combinations was RMB0.00, with the amount for last year being RMB0.00.Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Yang Wentian
4. Income Statement of the Company as the Parent
Unit: RMB
Item | 2022 | 2021 |
I Operating revenue | 0.00 | 6,072.98 |
Less: Cost of sales | 0.00 | 3,997.51 |
Taxes and levies | 370,416.70 | 169,236.15 |
Selling expense | ||
Administrative expense | 142,946,488.68 | 108,298,808.63 |
R&D expense | 55,470,547.04 | 49,585,654.07 |
Finance costs | -1,320,194,889.62 | -1,174,604,456.01 |
Of which: Interest expense | 68,515.70 | 120,978.03 |
Interest income | 1,320,290,654.38 | 1,174,761,559.86 |
Add: Other income | 20,873,010.56 | 12,836,803.76 |
Return on investment (―-‖ for loss) | 18,799,779,256.49 | 17,986,096,250.69 |
Of which: Share of profit or loss of joint ventures and associates | 87,619,669.47 | 94,286,122.75 |
Income from the derecognition of financial assets at amortized cost (―-‖ for loss) | ||
Net gain on exposure hedges (―-‖ for loss) | ||
Gain on changes in fair value (―-‖ for loss) | ||
Credit impairment loss (―-‖ for loss) | -1,002,989.80 | -500,010.20 |
Asset impairment loss (―-‖ for loss)) | ||
Asset disposal income (―-‖ for loss) | ||
II Operating profit (―-‖ for loss) | 19,941,056,714.45 | 19,014,985,876.88 |
Add: Non-operating income | 413,500.00 | 75,201.02 |
Less: Non-operating expense | 58,415,869.51 | 99,772,654.47 |
III Gross profit (―-‖ for gross loss) | 19,883,054,344.94 | 18,915,288,423.43 |
Less: Income tax expense | 265,217,451.15 | 220,328,944.73 |
IV Net profit (―-‖ for net loss) | 19,617,836,893.79 | 18,694,959,478.70 |
(I) Net profit from continuing operations (―-‖ for net loss) | 19,617,836,893.79 | 18,694,959,478.70 |
(II) Net profit from discontinued operations (―-‖ for net loss) | ||
V Other comprehensive income, net of tax | ||
(I) Other comprehensive income that will not be reclassified to profit or loss | ||
1. Changes caused by remeasurements on defined benefit schemes | ||
2. Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
3. Changes in the fair value of other debt investments | ||
4. Changes in the fair value arising from changes in own credit risk | ||
5. Other | ||
(II) Other comprehensive income that will be reclassified to profit or loss | ||
1. Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
2. Changes in the fair value of other debt investments | ||
3. Other comprehensive income arising from the reclassification of financial assets | ||
4. Credit impairment allowances for other debt investments |
5. Reserve for cash flow hedges | ||
6. Differences arising from the translation of foreign currency-denominated financial statements | ||
7. Other | ||
VI Total comprehensive income | 19,617,836,893.79 | 18,694,959,478.70 |
VII Earnings per share: | ||
(I) Basic earnings per share | ||
(II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
Item | 2022 | 2021 |
I Cash flows from operating activities: | ||
Proceeds from sale of goods and rendering of services | 81,770,582,903.92 | 80,952,960,804.29 |
Net increase in customer deposits and deposits from other banks and financial institutions | ||
Net increase in borrowings from the central bank | ||
Net increase in loans from other financial institutions | ||
Premiums received on original insurance contracts | ||
Net proceeds from reinsurance | ||
Net increase in deposits and investments of policy holders | ||
Interest, fees and commissions received | ||
Net increase in loans from other banks and financial institutions | ||
Net increase in proceeds from repurchase transactions | ||
Net proceeds from acting trading of securities | ||
Tax and levy rebates | 72,322,800.00 | 24,522,993.00 |
Cash generated from other operating activities | 2,006,197,288.41 | 2,045,885,363.36 |
Subtotal of cash generated from operating activities | 83,849,102,992.33 | 83,023,369,160.65 |
Payments for goods and services | 19,397,297,581.75 | 19,137,502,429.86 |
Net increase in loans and advances to customers | ||
Net increase in deposits in the central bank and other banks and financial institutions | ||
Payments for claims on original insurance contracts | ||
Net increase in loans to other banks and financial institutions | ||
Interest, fees and commissions paid | ||
Policy dividends paid | ||
Cash paid to and for employees | 7,879,082,833.54 | 7,240,759,270.94 |
Taxes and levies paid | 27,773,048,881.11 | 25,084,613,186.47 |
Cash used in other operating activities | 4,368,537,434.45 | 4,785,552,400.33 |
Subtotal of cash used in operating activities | 59,417,966,730.85 | 56,248,427,287.60 |
Net cash generated from/used in operating activities | 24,431,136,261.48 | 26,774,941,873.05 |
II Cash flows from investing activities: | ||
Proceeds from the disposal of investments | ||
Return on investment | 23,038,080.00 | 41,720,016.00 |
Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 46,667,262.99 | 6,184,352.82 |
Net proceeds from the disposal of subsidiaries and other business units | ||
Cash generated from other investing activities | ||
Subtotal of cash generated from investing activities | 69,705,342.99 | 47,904,368.82 |
Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 1,780,534,893.52 | 1,539,129,180.86 |
Payments for the acquisition of investments | 5,625,000.00 | 5,625,000.00 |
Net increase in pledge loans | ||
Net payments for the acquisition of subsidiaries and other business units | ||
Cash used in other investing activities | ||
Subtotal of cash used in investing activities | 1,786,159,893.52 | 1,544,754,180.86 |
Net cash generated from/used in investing activities | -1,716,454,550.53 | -1,496,849,812.04 |
III Cash flows from financing activities: | ||
Capital contributions received | ||
Of which: Capital contributions received by subsidiaries from non-controlling interests | ||
Borrowings received | ||
Cash generated from other financing activities | ||
Subtotal of cash generated from financing activities | ||
Repayment of borrowings | ||
Interest and dividends paid | 12,681,422,089.05 | 10,874,295,018.51 |
Of which: Dividends paid by subsidiaries to non-controlling interests | 947,321,133.56 | 859,746,365.61 |
Cash used in other financing activities | 424,009,369.15 | 395,161,935.55 |
Subtotal of cash used in financing activities | 13,105,431,458.20 | 11,269,456,954.06 |
Net cash generated from/used in financing activities | -13,105,431,458.20 | -11,269,456,954.06 |
IV Effect of foreign exchange rate changes on cash and cash equivalents | 136,266.19 | -469,528.68 |
V Net increase in cash and cash equivalents | 9,609,386,518.94 | 14,008,165,578.27 |
Add: Cash and cash equivalents, beginning of the period | 80,975,257,378.72 | 66,967,091,800.45 |
VI Cash and cash equivalents, end of the period | 90,584,643,897.66 | 80,975,257,378.72 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item | 2022 | 2021 |
I Cash flows from operating activities: | ||
Proceeds from sale of goods and rendering of services | 0.00 | 2,200.00 |
Tax and levy rebates | ||
Cash generated from other operating activities | 1,463,712,176.86 | 1,053,801,847.71 |
Subtotal of cash generated from operating activities | 1,463,712,176.86 | 1,053,804,047.71 |
Payments for goods and services | ||
Cash paid to and for employees | 151,676,699.98 | 114,541,768.51 |
Taxes and levies paid | 46,538,112.01 | 193,123,570.90 |
Cash used in other operating activities | 264,037,436.73 | 521,409,386.01 |
Subtotal of cash used in operating activities | 462,252,248.72 | 829,074,725.42 |
Net cash generated from/used in operating activities | 1,001,459,928.14 | 224,729,322.29 |
II Cash flows from investing activities: | ||
Proceeds from the disposal of investments | ||
Return on investment | 17,761,634,324.18 | 17,515,105,146.72 |
Net proceeds from the disposal of fixed assets, intangible assets and other long-term assets | 137.61 | |
Net proceeds from the disposal of subsidiaries and other business units | ||
Cash generated from other investing activities | ||
Subtotal of cash generated from investing activities | 17,761,634,461.79 | 17,515,105,146.72 |
Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 11,972,576.93 | 21,157,071.16 |
Payments for the acquisition of investments | 5,625,000.00 | 5,625,000.00 |
Net payments for the acquisition of subsidiaries and other business units | ||
Cash used in other investing activities | ||
Subtotal of cash used in investing activities | 17,597,576.93 | 26,782,071.16 |
Net cash generated from/used in investing activities | 17,744,036,884.86 | 17,488,323,075.56 |
III Cash flows from financing activities: | ||
Capital contributions received | ||
Borrowings received | ||
Cash generated from other financing activities | ||
Subtotal of cash generated from financing activities | ||
Repayment of borrowings | ||
Interest and dividends paid | 11,734,100,955.49 | 10,014,548,652.90 |
Cash used in other financing activities | 1,979,700.00 | 1,979,700.00 |
Subtotal of cash used in financing activities | 11,736,080,655.49 | 10,016,528,352.90 |
Net cash generated from/used in financing activities | -11,736,080,655.49 | -10,016,528,352.90 |
IV Effect of foreign exchange rate changes on cash and cash equivalents | ||
V Net increase in cash and cash equivalents | 7,009,416,157.51 | 7,696,524,044.95 |
Add: Cash and cash equivalents, beginning of the period | 42,966,222,702.66 | 35,269,698,657.71 |
VI Cash and cash equivalents, end of the period | 49,975,638,860.17 | 42,966,222,702.66 |
7. Consolidated Statements of Changes in Owners’ Equity
2022
Unit: RMB
Item | 2022 | ||||||||||||||
Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
Preference shares | Perpetual bonds | Other | |||||||||||||
I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 23,866,103,395.72 | 68,638,139,859.37 | 99,068,498,346.24 | 2,323,385,298.63 | 101,391,883,644.87 | ||||||||
Add: Adjustments for changes in accounting policies | |||||||||||||||
Adjustments for correction of previous errors | |||||||||||||||
Adjustments for business combinations involving entities under common control | |||||||||||||||
Other | |||||||||||||||
II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 23,866,103,395.72 | 68,638,139,859.37 | 99,068,498,346.24 | 2,323,385,298.63 | 101,391,883,644.87 | ||||||||
III Increase/ decrease in the period (―-‖ for decrease) | 4,566,095,129.26 | 10,390,465,312.67 | 14,956,560,441.93 | 335,745,529.29 | 15,292,305,971.22 | ||||||||||
(I) Total comprehensive income | 26,690,661,397.42 | 26,690,661,397.42 | 1,279,970,534.80 | 27,970,631,932.22 |
(II) Capital increase and reduction by owners | -21,148,883.78 | -21,148,883.78 | |||||||||||||
1. Ordinary share increase by owners | |||||||||||||||
2. Capital increase by holders of other equity instruments | |||||||||||||||
3. Share-based payments recognized in owners’ equity | |||||||||||||||
4. Other | -21,148,883.78 | -21,148,883.78 | |||||||||||||
(III) Profit distribution | 4,566,095,129.26 | -16,300,196,084.75 | -11,734,100,955.49 | -923,076,121.73 | -12,657,177,077.22 | ||||||||||
1. Appropriated to surplus reserves | 4,566,095,129.26 | -4,566,095,129.26 | |||||||||||||
2. Appropriated to general reserve | |||||||||||||||
3. Distributed to owners (or shareholders) | -11,734,100,955.49 | -11,734,100,955.49 | -923,076,121.73 | -12,657,177,077.22 | |||||||||||
4. Other | |||||||||||||||
(IV) Transfers within owners’ equity | |||||||||||||||
1. Increase in capital (or share capital) from capital reserves | |||||||||||||||
2. Increase in capital (or share capital) from surplus reserves | |||||||||||||||
3. Surplus reserves used to offset loss |
4. Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
5. Other comprehensive income transferred to retained earnings | |||||||||||||||
6. Other | |||||||||||||||
(V) Specific reserve | |||||||||||||||
1. Increase in the period | |||||||||||||||
2. Used in the period | |||||||||||||||
(VI) Other | |||||||||||||||
IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 28,432,198,524.98 | 79,028,605,172.04 | 114,025,058,788.17 | 2,659,130,827.92 | 116,684,189,616.09 |
2021
Unit: RMB
Item | 2021 | ||||||||||||||
Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
Preference shares | Perpetual bonds | Other | |||||||||||||
I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 19,698,525,995.51 | 59,443,191,559.08 | 85,705,972,645.74 | 2,052,273,998.97 | 87,758,246,644.71 | ||||||||
Add: Adjustments for changes in accounting |
policies | |||||||||||||||
Adjustments for correction of previous errors | |||||||||||||||
Adjustments for business combinations involving entities under common control | |||||||||||||||
Other | |||||||||||||||
II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 19,698,525,995.51 | 59,443,191,559.08 | 85,705,972,645.74 | 2,052,273,998.97 | 87,758,246,644.71 | ||||||||
III Increase/ decrease in the period (―-‖ for decrease) | 4,167,577,400.21 | 9,194,948,300.29 | 13,362,525,700.50 | 271,111,299.66 | 13,633,637,000.16 | ||||||||||
(I) Total comprehensive income | 23,377,074,353.40 | 23,377,074,353.40 | 1,130,375,976.86 | 24,507,450,330.26 | |||||||||||
(II) Capital increase and reduction by owners | |||||||||||||||
1. Ordinary share increase by owners | |||||||||||||||
2. Capital increase by holders of other equity instruments | |||||||||||||||
3. Share-based payments recognized in owners’ equity | |||||||||||||||
4. Other | |||||||||||||||
(III) Profit distribution | 4,167,577,400.21 | -14,182,126,053.11 | -10,014,548,652.90 | -859,264,677.20 | -10,873,813,330.10 | ||||||||||
1. Appropriated to surplus reserves | 4,167,577,400.21 | -4,167,577,400.21 |
2. Appropriated to general reserve | |||||||||||||||
3. Distributed to owners (or shareholders) | -10,014,548,652.90 | -10,014,548,652.90 | -859,264,677.20 | -10,873,813,330.10 | |||||||||||
4. Other | |||||||||||||||
(IV) Transfers within owners’ equity | |||||||||||||||
1. Increase in capital (or share capital) from capital reserves | |||||||||||||||
2. Increase in capital (or share capital) from surplus reserves | |||||||||||||||
3. Surplus reserves used to offset loss | |||||||||||||||
4. Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
5. Other comprehensive income transferred to retained earnings | |||||||||||||||
6. Other | |||||||||||||||
(V) Specific reserve | |||||||||||||||
1. Increase in the period | |||||||||||||||
2. Used in the period | |||||||||||||||
(VI) Other | |||||||||||||||
IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 23,866,103,395.72 | 68,638,139,859.37 | 99,068,498,346.24 | 2,323,385,298.63 | 101,391,883,644.87 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2022
Unit: RMB
Item | 2022 | |||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
Preference shares | Perpetual bonds | Other | ||||||||||
I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 11,333,854,390.82 | 47,031,016,639.11 | 64,929,126,121.08 | |||||||
Add: Adjustments for changes in accounting policies | ||||||||||||
Adjustments for correction of previous errors | ||||||||||||
Other | ||||||||||||
II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 11,333,854,390.82 | 47,031,016,639.11 | 64,929,126,121.08 | |||||||
III Increase/ decrease in the period (―-‖ for decrease) | 1,961,783,689.38 | 5,921,952,248.92 | 7,883,735,938.30 | |||||||||
(I) Total comprehensive income | 19,617,836,893.79 | 19,617,836,893.79 | ||||||||||
(II) Capital increase and reduction by owners | ||||||||||||
1. Ordinary share increase by owners | ||||||||||||
2. Capital increase by holders of other equity instruments | ||||||||||||
3. Share-based payments recognized in owners’ equity | ||||||||||||
4. Other | ||||||||||||
(III) Profit distribution | 1,961,783,689.38 | -13,695,884,644.87 | -11,734,100,955.49 | |||||||||
1. Appropriated to surplus reserves | 1,961,783,689.38 | -1,961,783,689.38 | ||||||||||
2. Distributed to owners (or shareholders) | -11,734,100,955.49 | -11,734,100,955.49 | ||||||||||
3. Other | ||||||||||||
(IV) Transfers within owners’ equity | ||||||||||||
1. Increase in capital (or share capital) from capital reserves | ||||||||||||
2. Increase in capital (or share capital) from surplus reserves | ||||||||||||
3. Surplus reserves used to offset loss |
4. Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
5. Other comprehensive income transferred to retained earnings | ||||||||||||
6. Other | ||||||||||||
(V) Specific reserve | ||||||||||||
1. Increase in the period | ||||||||||||
2. Used in the period | ||||||||||||
(VI) Other | ||||||||||||
IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 13,295,638,080.20 | 52,952,968,888.03 | 72,812,862,059.38 |
2021
Unit: RMB
Item | 2021 | |||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
Preference shares | Perpetual bonds | Other | ||||||||||
I Balance as at the end of the prior year | 3,881,608,005.00 | 2,682,647,086.15 | 9,464,358,442.95 | 40,220,101,761.18 | 56,248,715,295.28 | |||||||
Add: Adjustments for changes in accounting policies | ||||||||||||
Adjustments for correction of previous errors | ||||||||||||
Other | ||||||||||||
II Balance as at the beginning of the year | 3,881,608,005.00 | 2,682,647,086.15 | 9,464,358,442.95 | 40,220,101,761.18 | 56,248,715,295.28 |
III Increase/ decrease in the period (―-‖ for decrease) | 1,869,495,947.87 | 6,810,914,877.93 | 8,680,410,825.80 | |||||||||
(I) Total comprehensive income | 18,694,959,478.70 | 18,694,959,478.70 | ||||||||||
(II) Capital increase and reduction by owners | ||||||||||||
1. Ordinary share increase by owners | ||||||||||||
2. Capital increase by holders of other equity instruments | ||||||||||||
3. Share-based payments recognized in owners’ equity | ||||||||||||
4. Other | ||||||||||||
(III) Profit distribution | 1,869,495,947.87 | -11,884,044,600.77 | -10,014,548,652.90 | |||||||||
1. Appropriated to surplus reserves | 1,869,495,947.87 | -1,869,495,947.87 | ||||||||||
2. Distributed to owners (or shareholders) | -10,014,548,652.90 | -10,014,548,652.90 | ||||||||||
3. Other | ||||||||||||
(IV) Transfers within owners’ equity | ||||||||||||
1. Increase in capital (or share capital) from capital reserves | ||||||||||||
2. Increase in capital (or share capital) from surplus reserves | ||||||||||||
3. Surplus reserves used to offset loss | ||||||||||||
4. Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
5. Other comprehensive income transferred to retained earnings | ||||||||||||
6. Other | ||||||||||||
(V) Specific reserve | ||||||||||||
1. Increase in the period |
2. Used in the period | ||||||||||||
(VI) Other | ||||||||||||
IV Balance as at the end of the period | 3,881,608,005.00 | 2,682,647,086.15 | 11,333,854,390.82 | 47,031,016,639.11 | 64,929,126,121.08 |
III Company Profile
1. Company history
Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company") is a company limited by sharesestablished by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval ofDocument CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company isprincipally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series,with a registered capital of RMB3,881.6080 million and registered address: 150 Minjiang West Road, CuipingDistrict, Yibin City, Sichuan Province, China.The Company issued 80 million common shares (in RMB) on-line by fixed price offering at ShenzhenStock Exchange on 27 April 1998. According to the resolution of the extraordinary general meeting ofShareholders in September 1999, the Company, based on the total share capital of 320 million shares on 30 June1999, transferred capital reserve to increase share capital, increasing five shares for every ten shares and the totalshare capital after the conversion was changed to 480 million shares. The Company placed 31.2 million commonshares (in RMB) to the original shareholders as approved by the Document ZH.J.G.S.Z. [2001] No. 6 issued bythe China Securities Regulatory Commission. The total share capital after the placement was 511.2 millionshares. In August 2001, the Company implemented the interim distribution plan 2001 and issued four bonusshares and increased three shares for every ten shares by transferring capital reserve to share capital, with 357.84million bonus shares and shares transferred from capital reserve in total. The total share capital after the issuanceand translation was 869.04 million shares. In April 2002, the Company implemented the distribution plan 2001and issued one bonus shares, increased two shares by transferring capital reserve to share capital, and distributedRMB0.25 (tax inclusive) in cash for every ten shares, with 260.712 million bonus shares in total. The total sharecapital after the issuance and translation was 1,129.752 million shares. In April 2003, the Company implementedthe distribution plan 2002 and increased two shares for every ten shares by transferring capital reserve to sharecapital for all shareholders, increasing the share capital by 225.9504 million shares. The total share capital afterthe translation was 1,355.7024 million shares. In April 2004, the Company implemented the distribution plan2003 and issued eight bonus shares and increased two shares by transferring capital reserve to share capital forevery ten shares, with 1,355.7024 million bonus shares in total. The total share capital after the issuance andtranslation was 2,711.4048 million shares.On 31 March 2006, the Company carried out the equity division reform and the shareholding structure afterthe reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the totalshare capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 millionshares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained2,711.4048 million shares.In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares anddistributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total.The total share capital after the issuance and distribution was 3,795.96672 million shares. On 2 April 2008,shares for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants andbecame 2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held1,667.5954 million shares, taking up 43.93% of the total share capital.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye YibinCo., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders ofWuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the StateCouncil (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as YibinDevelopment Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company toSichuan Yibin Wuliangye Group Co., Ltd. for free on 10 October 2012. After this free transfer of shares, YibinDevelopment Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and wasthe first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07%shares of the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’sGovernment of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. toYibin Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the changeof shares held by both parties in the Company, without changing the controlling shareholder and actual controllerof the Company.
According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting of
Shareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board ofDirectors, and annual general meeting of Shareholders 2016 of the Company and as approved by the LicenseZH.J.X.K. [2017] No. 1910 issued by the China Securities Regulatory Commission, the Company issued85,641,285 shares by non-public offering by means of targeted issue on 12 April 2018. The total share capitalafter the issuance was 3,881.608 million shares, including 2128.3714 million shares for state-owned legal person,taking up 54.83% of the total share capital, and 1,753.2366 million shares for other shareholders, taking up 45.17%of the total share capital.According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd.(Y.G.Z.W. [2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission ofthe People’s Government of Yibin City, the transfer was approved in principle. On 24 August 2020, YibinDevelopment Holding Group Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan YibinWuliangye Group Co., Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd.still held 34.43% shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of theCompany; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343shares), was the second majority shareholder of the Company. This transfer of shares did not change thecontrolling shareholder and actual controller of the Company.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage production industry and its business scope is: Production andoperation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packagingproducts). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.
3. Approval of financial statements
These financial statements have been reviewed and approved by General Meeting of Shareholders of theCompany on 27 April 2023, and will be submitted to the general meeting for review according to the Articles ofAssociation.
4. Scope of consolidated financial statements of current year
As of 31 December 2022, subsidiaries included in the scope of consolidated financial statements of theCompany were:
Full name of subsidiary | Type of subsidiary | Tier | The Company’s shareholding percentage | The Company’s voting right percentage |
Sichuan Yibin Wuliangye Distillery Co., Ltd. | Majority-owned subsidiary | First-tier | 99.99% | 99.99% |
Yibin Wuliangye Liquor Sales Co., Ltd.
Yibin Wuliangye Liquor Sales Co., Ltd. | Majority-owned subsidiary | First-tier | 95.00% | 95.00% |
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. | Majority-owned subsidiary | Second-tier | 95.00% | 95.00% |
Yibin Wuliangchun Brand Marketing Co., Ltd
Yibin Wuliangchun Brand Marketing Co., Ltd | Majority-owned subsidiary | Second-tier | 95.00% | 95.00% |
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. | Majority-owned subsidiary | Second-tier | 95.00% | 95.00% |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd.
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | Majority-owned subsidiary | First-tier | 99.95% | 99.95% |
Yibin Jiangjiu Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | Majority-owned subsidiary | First-tier | 51.00% | 51.00% |
Sichuan Jinwuxin Technology Co., Ltd.
Sichuan Jinwuxin Technology Co., Ltd. | Majority-owned subsidiary | Second-tier | 51.00% | 51.00% |
Sichuan Jiebeike Environmental Technology Co., Ltd. | Majority-owned subsidiary | Second-tier | 26.01% | 26.01% |
Yibin Changjiangyuan Liquor Co., Ltd.
Yibin Changjiangyuan Liquor Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Yibin Changjiangyuan Trade Co., Ltd. | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Yibin Changjiangyuan Brewery Co., Ltd.
Yibin Changjiangyuan Brewery Co., Ltd. | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Yibin Wuliangye Organic Agriculture Development Co., Ltd. | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Majority-owned subsidiary | First-tier | 90.00% | 90.00% |
Yibin Xianlin Liquor Marketing Co., Ltd.
Yibin Xianlin Liquor Marketing Co., Ltd. | Majority-owned subsidiary | Second-tier | 90.00% | 90.00% |
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | Majority-owned subsidiary | First-tier | 98.53% | 98.53% |
Yibin Xinxing Packaging Co., Ltd.
Yibin Xinxing Packaging Co., Ltd. | Majority-owned subsidiary | Second-tier | 98.53% | 98.53% |
Sichuan Yibin Plastic Packaging Materials Company Limited | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd.
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Sichuan Yibin Push Group 3D Co., Ltd.
Sichuan Yibin Push Group 3D Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Guangdong Plastic Packaging Materials Company Limited | Wholly-owned subsidiary | Second-tier | 100.00% | 100.00% |
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd.
Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd. | Majority-owned subsidiary | First-tier | 95.00% | 95.00% |
Wuliangye Dashijie (Beijing) Trade Co., Ltd. | Majority-owned subsidiary | First-tier | 95.00% | 95.00% |
Handan Yongbufenli Liquor Co., Ltd. | Majority-owned subsidiary | First-tier | 51.00% | 51.00% |
Linzhang Desheng Liquor Trade Co., Ltd.
Linzhang Desheng Liquor Trade Co., Ltd. | Majority-owned subsidiary | Second-tier | 51.00% | 51.00% |
Handan Yongbufenli Sales Co., Ltd. | Majority-owned subsidiary | Second-tier | 51.00% | 51.00% |
Huaibin Wubin Consultation Service Co., Ltd.
Huaibin Wubin Consultation Service Co., Ltd. | Wholly-owned subsidiary | First-tier | 100.00% | 100.00% |
Wuguchun Jiu Ye Co., Henan. China | Majority-owned subsidiary | Second-tier | 51.03% | 51.03% |
Huaibin Tenglong Trade Co., Ltd.
Huaibin Tenglong Trade Co., Ltd. | Majority-owned subsidiary | Third-tier | 51.03% | 51.03% |
Wuguchun Jiu Ye Sales Co., Henan. China | Majority-owned subsidiary | Third-tier | 51.03% | 51.03% |
Sichuan Wuliangye Culture Tourism Development Co.,Ltd.
Sichuan Wuliangye Culture Tourism Development Co., Ltd. | Majority-owned subsidiary | First-tier | 80.00% | 80.00% |
Sichuan Wuliangye Tourist Agency Co., Ltd. | Majority-owned subsidiary | Second-tier | 80.00% | 80.00% |
Yibin Wuliangye Creart Co., Ltd. | Majority-owned subsidiary | First-tier | 45.00% | 51.00% |
Sichuan Wuliangye NongXiang Baijiu Co., Ltd.
Sichuan Wuliangye NongXiang Baijiu Co., Ltd. | Majority-owned subsidiary | First-tier | 95.00% | 95.00% |
Sichuan Wuliangye New Retail Management Co., Ltd. | Majority-owned subsidiary | First-tier | 90.00% | 90.00% |
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for the scopeof consolidated financial statements of the current period and its changes.
IV Preparation Basis for Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and the recognitionand measurement are made at actual transactions and matters in accordance with the Accounting Standards forBusiness Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standardsfor Business Enterprise, Guidelines for Application of Accounting Standards for Business Enterprises,Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafterreferred to as ―Accounting Standards for Business Enterprise‖), combining with the Preparation Rules forInformation Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions onFinancial Reports (2014 revision) issued by China Securities Regulatory Commission on this basis.
2. Going concern
The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,and there is no major event affecting the ability of going concern.V Significant Accounting Policies and Accounting EstimatesThe Company should obey the disclosure requirement for the food and wine manufacturing relatedindustries in SSE Guidelines No. 3 on the Application of Self-Regulation Rules for Listed Companies - IndustryInformation Disclosure requirement
Specific accounting policies and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimates formulated bythe Company according to the actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of the AccountingStandards for Business Enterprises and truly and completely reflect the Company's financial position, operatingresults, cash flows and other relevant information.
2. Accounting period
From 1 January to 31 December of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping base currency
RMB is used as the bookkeeping base currency and reporting currency of the Company.
5. Accounting methods for business combinations involving enterprises under and not under the commoncontrol
(1) Business combination involving enterprises under the common control
The assets and liabilities acquired by the combining party through business combination involvingenterprises under the common control are measured at the share of owners' equity of the combined party in thecarrying value on consolidated financial statements of the final controlling party on the combination date. Thedifference between the carrying value of the net assets obtained by the combining party and the carrying value ofconsideration paid for the combination (or total par value of the shares issued) is adjusted against share premiumin the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall beadjusted. All the direct costs incurred by the combining party for the business combination shall be included incurrent profit/loss when incurred.
(2) Business combination involving enterprises not under the common control
In case of business combination involving enterprises not under the common control, the combination costsshall be the fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on thedate of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the common control achieved through step-by-step implementation of multiple transactions, related accounting treatment shall be carried out by distinguishingindividual financial statements from consolidated financial statements:
a) In the individual financial statements, the sum of carrying value of the equity investment held in theacquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall be takenas the initial cost of such investment; where the equity held in the acquiree prior to the date of acquisitioninvolves other comprehensive income, the other comprehensive income related to such investment shall betransferred to current return on investment.b) In the consolidated financial statements, the equity held in the acquiree prior to the date of acquisitionshall be re-measured at the fair value of such equity on the date of acquisition, and the difference between its fairvalue and its carrying value shall be included in the current return on investment; where the equity held in theacquiree prior to the date of acquisition involves other comprehensive income, the other comprehensive incomerelated to such investment shall be transferred to current return on investment on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and other administrativeexpenses incurred by the acquirer for the business combination shall be included in current profit/loss; thetransaction expenses for issuing equity securities or debt securities by the acquirer as consideration of thecombination shall be included in the initial recognition amount of the equity securities or debt securities.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the businesscombination involving enterprises not under the common control shall be measured at the fair value on the dateof acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's netidentifiable assets obtained in the combination, the difference shall be recognized as goodwill. Where thecombination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assetsobtained in the combination, the acquirer shall first recheck the fair values of the acquiree's identifiable assets,liabilities and contingent liabilities obtained in the combination and the combination cost. Where thecombination cost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assetsobtained in the combination, the difference shall be included in the current profit/loss.
6. Methods for preparing consolidated financial statements
(1) Principles for determining the scope of consolidated financial statements:
The scope of consolidated financial statements is determined on the basis of control, including theCompany and the subsidiaries under its control. Control means that the Company has the power over theinvested company, gets variable return by participating in related activities of the invested company and has theability to influence the amount of the return by its power over the invested company.
(2) Methods for preparing consolidated financial statements:
The Company as the parent shall prepare the consolidated financial statements based on its financialstatements and those of its subsidiaries and according to other relevant information. The share of the subsidiariesin current profit/loss attributable to non-controlling interests shall be presented in the consolidated incomestatement as "net profit attributable to non-controlling interests" under the net profit. The share in currentcomprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented inthe consolidated income statement as "total comprehensive income attributable to non-controlling interests"under the total other comprehensive income.
For subsidiaries and businesses of the Company as the parent added by business combination involvingenterprises under the common control during the Reporting Period, the revenue, expenses, and profits of suchsubsidiaries and businesses from the beginning to the end of the period of business combination shall berecorded into the consolidated income statement. Cash flows of such subsidiaries and businesses from thebeginning to the end of the year of business combination shall be recorded into the consolidated cash flowstatement, and relevant items of the statements shall be adjusted through comparison of the statements, as if thereporting entity after the combination had been existing from control of the final controlling party after thecombination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not under thecommon control or other means, the revenue, expenses, and profits of such subsidiaries and businesses from thedate of acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cashflows of such subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into theconsolidated cash flow statement.
When the Company as the parent disposes subsidiaries and businesses during the Reporting Period, therevenue, expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to thedate of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiaryand business from the beginning of the Reporting Period to the date of disposal shall be recorded into theconsolidated cash flow statement.
In the consolidated financial statements, when the Company as the parent acquires the equity held by theminority shareholders in the subsidiary, the difference between the long-term equity investment obtained byacquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated fromthe date of acquisition or combination according to the new increase in shareholding proportion shall be adjustedagainst the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writingdown, the retained earnings shall be adjusted.
7. Classification of joint arrangements and accounting methods for joint operations
Joint arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns itsrelevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat them according torelevant Accounting Standards for Business Enterprises:
(1) Recognize assets solely held by the Company, and those jointly owned assets according to theCompany's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities according to
the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint operation;
(4) Recognize revenue from sales in the joint operation according to the Company's share;
(5) Recognize expenses solely incurred, and those incurred for joint operation according to the Company'sshare.
Refer to the Note "long-term equity investment" for the accounting policy of the Company for investmentsin joint venture.
8. Recognition criteria of cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cashequivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquidinvestments that are readily convertible into known amounts of cash and that are subject to an insignificant riskof change in value.
9. Foreign currency transaction and foreign currency statement translation
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping base currency at the benchmarkexchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by thePeople's Bank of China, the same below) published by the People's Bank of China on the transaction date; at theend of the period, foreign currency monetary items shall be translated at the ending spot exchange rate; non-monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rateprevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall betranslated at the spot exchange rate prevailing on the date of determining fair value. The difference arising fromtranslation shall be included in the construction cost of relevant fixed assets if in connection with acquisition andconstruction of the fixed assets which has not yet reached its intended condition for use; shall be included inadministrative expenses if incurring during the preparation period and not in connection with acquisition andconstruction of fixed assets; and shall be included in current finance costs if incurring during the production andoperation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date;all items of owners' equity, except for retained earnings, shall be translated at the spot exchange rate at the timeof incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rate on the dateof transaction. Differences arising from the translation of foreign currency-denominated financial statementsshall be separately presented under the owners' equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spotexchange rate on the date of incurrence of the cash flows.
10. Financial instruments
Financial instruments refer to any contract that gives rise to a financial asset of a party and financialliabilities or equity instruments of other parties.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a party of thefinancial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) Thecontractual right to charge the cash flow of the financial assets is terminated; 2) The financial assets have beentransferred and the Company has transferred almost all risks and remuneration of the financial assets ownershipto the transferee; and 3) The financial assets have been transferred and the Company does neither transfer norretain almost all risks and remuneration of the financial assets ownership but gives up the control over thefinancial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or partthereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize the assetsto be received and the liabilities to be assumed on the trading day, or derecognize the assets sold on the tradingday.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristicsof financial assets, the Company classified financial assets into the following categories: Financial assets
measured at the amortized cost, financial assets measured at fair value through other comprehensive income, andfinancial assets measured at fair value through profit and loss of the current period.
1) Initial measurement of financial assets
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets at fairvalue through profit or loss, relevant transaction expenses shall be directly included in current profit or loss; forother categories of financial assets, relevant transaction expenses shall be included in the initial recognitionamount. For notes receivable and accounts receivable arising from sales of goods or provision of service whichdo not include or consider the compositions of major assets, the Company shall take the consideration expectedto be received as the initial recognition amount.
2) Subsequent measurement of financial assets
a) Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining contractual cashflow, and the characteristics of contractual cash flow of such financial assets are basically the same as basicborrowing arrangement, namely the cash flow arising on a specific date, which are solely payments of principaland interest on the principal amount outstanding. The Company subsequently measures such financial assets atamortized costs by effective interest method. The gain or loss from their amortization, impairment andderecognition shall be included in current profit or loss.
b) Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receiving contractual cashflow as well as selling, and the characteristics of contractual cash flow of such financial assets are basically thesame as basic borrowing arrangement. Such financial assets shall be measured at fair value, with the changesincluded in other comprehensive income, but the impairment loss, exchange gain or loss and interest incomecalculated by effective interest method shall be included in current profit or loss. The accumulative gains orlosses which are previously included in other comprehensive income shall be transferred out from othercomprehensive income and included in current profit or loss upon derecognition.
c) Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instruments measured atamortized cost and debt instruments at fair value through other comprehensive income as financial assets at fairvalue through profit or loss. For eliminating or significantly reducing accounting mismatch upon initialrecognition, financial assets may be designated as financial assets at fair value through profit or loss. Suchfinancial assets shall be subsequently measured at fair value with all changes in fair value included in currentprofit or loss. Only when the Company changes the business model of managing financial assets, shall relevantfinancial assets being affected be reclassified.
d) Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financial assets atfair value through other comprehensive income upon initial recognition. The Company includes relevantdividends income in current profit or loss, with changes in fair value included in other comprehensive income.The accumulative gains or losses which are previously included in other comprehensive income shall betransferred from other comprehensive income to retained earnings instead of current profit or loss uponderecognition of such financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownership to thetransferee, the financial assets shall be derecognized; if the Company retains almost all risks and remuneration ofthe financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financial assetsownership but gives up the control over the financial assets, such financial assets shall be derecognized and therights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; ifcontrol over the financial assets is retained, relevant financial assets shall be continuously recognized accordingto the extent of involving in the financial assets transferred and relevant liabilities shall be recognizedaccordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost and financialliabilities at fair value through profit or loss upon initial recognition.
1) Initial measurement of financial liabilities
Any financial liability meeting any of the following conditions can be designated upon initial measurementas the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantlyreduce accounting mismatch; b) According to the risk management or investment strategy of the Company as
stated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets andfinancial liabilities is managed and evaluated on the basis of fair value, and reported to the key management onthe basis of this inside the Company; c) This financial liability contains embedded derivative to be separatelysplit.The Company shall determine classification of the financial liabilities upon initial recognition. Forfinancial liabilities at fair value through profit or loss, relevant transaction expenses shall be directly included incurrent profit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall beincluded in the initial recognition amount.
2) Subsequent measurement of financial liabilities
a) Financial liabilities measured at amortized cost: The Company subsequently measures such financialliabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortizationshall be included in current profit/loss.b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair valuethrough profit or loss upon initial recognition.
Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities)shall be subsequently measured at fair value (except for those concerning hedge accounting) with changes in fairvalue included in current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fair valuearising from change of the credit risk of the Company shall be included in other comprehensive income;accumulative gain or loss previously included in other comprehensive income shall be transferred from othercomprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.If previous accounting treatment may cause or expand the accounting mismatch in profit or loss, all gains orlosses of such financial liabilities (including the amount affected by change in credit risk of the Company) shallbe included in current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities shallbe presented as net amount after offset in the balance sheet: The Company has the legal right to offset therecognized amount and may exercise such legal right currently; the Company plans to settle with net amount orrealize the financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in theactive market. For financial instruments without active market, the fair value shall be determined by valuationtechnique. The Company shall adopt the valuation technique which is applicable in current situation andsupported by sufficient available data and other information for valuation. The Company shall choose inputswhich are consistent with the characteristics of assets or liabilities considered by the market participant in thetransaction of relevant assets and liabilities, and give priority to relevant observable inputs. If it is impossible orimpractical to obtain relevant observable inputs, the Company may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized cost,investments in debt instruments at fair value through other comprehensive income, contract asset, leasereceivables, loan commitment and financial guarantee contracts based on the expected credit loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by therisk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company atthe original effective interest rate and receivable according to the contract and all expected cash flows received,namely the present value of all cash shortage. Among which, the financial assets purchased or originated thathave suffered from credit impairment shall be discounted at the effective interest rate of the financial assets aftercredit adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expectedlifetime of financial instruments due to defaults.
12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (if theexpected lifetime of the financial instrument is less than 12 months, the expected lifetime) after the balance sheetdate due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.
On the balance sheet date, the Company measured the expected credit loss of financial instruments atdifferent stages, respectively. If the credit risk of a financial instrument has not increased significantly since theinitial recognition, the financial instrument is in Stage 1, and the Company measures the provisions for lossaccording to the 12-month expected credit loss; if the credit risk of a financial instrument has increased
significantly but the credit impairment has not yet occurred since the initial recognition, the financial instrumentis in Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses;if the financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and theCompany measures the provisions for loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that thecredit risk has not increased significantly since the initial recognition, and the Company measures the provisionsfor loss according to the 12-month expected credit loss.
For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate theinterest income according to the carrying amount and effective interest rate before deducting the provisions forimpairment. For financial instruments in Stage 3, the Company shall calculate the interest income according tothe amortized cost and effective interest rate of the carrying amount after withdrawing the provisions forimpairment.
For notes receivable and accounts receivable, regardless of whether there is major financing, the Companyshall always consider all reasonable and sound information, including prospective information, to estimateexpected credit loss of the above accounts receivable individually or in combination and adopt the simplifiedmodel of expected credit loss. The Company shall always measure the provisions for loss according to thelifetime expected credit loss.
1) Accounts receivable
a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurredin an account receivable, impairment test shall be carried out separately on it, such as accounts receivable indispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor islikely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debtprovisions shall be made based on the balance between the present value of future cash flows and its carryingvalue.
b) If there is no objective evidence indicating that impairment or the credit loss of a single financial assetcannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups bycharacteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis fordetermining the combinations is as below:
Item | Determination Basis |
Bank acceptance bill group | Bank acceptance bills |
Letter of credit group | Letters of credit |
Commercial acceptance bills group | Commercial acceptance bills |
Accounts receivable group
Accounts receivable group | Receivables from related parties |
Accounts receivable group | External customer |
Other receivables group | Receivables from and payables to related parties |
Other receivables group | Cash float, deposits and other receivables with low credit risk |
Other receivables group
Other receivables group | Other amounts |
For accounts receivable divided into risk groups, the Company, with reference to historical experience incredit loss and based on current situation and forecast of future economic situation, shall prepare a comparisontable between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expectedcredit losses. For other groups, the Company, with reference to historical experience in credit loss and based oncurrent situation and forecast of future economic situation, shall calculate the expected credit losses according tothe exposure at default and the 12-month or lifetime expected credit loss rate.
2) Debt investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected credit lossaccording to the nature of investment, types of counterparty and risk exposure, exposure at default and the 12-month or lifetime expected credit loss rate.The Company shall include the provision or reversal for loss made or included in current profit or loss. Forinvestment in debts instruments at fair value through other comprehensive income, the Company shall adjustother comprehensive income when the impairment loss or gain is included in current profit or loss; for financialassets measured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finished products,goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost and priced byweighted average method when sent out; paper, printing ink, and auxiliary materials for producing printedmatters are measured at planned cost when purchased and sent out, with the difference between actual cost andplanned cost included in ―materials cost difference‖. The difference to be amortized by the materials sent outshall be calculated by materials cost difference by category at the end of the month, so as to adjust cost of thematerials sent out into actual cost; goods in process, self-manufactured semi-finished products, and finishedproducts are measured at actual cost and priced by weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of inventory fallingprice reserves
On the balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. Ifcost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shallbe made and included in current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion, estimatedselling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidence obtained andafter taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheetevents. Materials held for use in the production of inventories are measured at cost if the net realizable value ofthe finished products in which they will be incorporated is higher than their cost; decline in the price of materialsindicates that the cost of the finished products exceeds their net realizable value, the materials are measured atnet realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on thecontract price. If the quantities held by the Company is higher than the quantities of inventories specified in salescontracts, the net realizable value of the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory is lower thanthe cost.
1) Market price of the inventory declines continuously and there is no hope of rising in the foreseeablefuture.
2) The cost of products produced by the Company with such raw materials is higher than the selling priceof the product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products,and the market price of the raw material is lower than the book cost.
4) The market price declines gradually due to obsolete goods or service provided by the Company, orchange of market demands due to change of consumer preference.
5) Other circumstances which are sufficient to prove substantial impairment of the inventory.
The Company shall usually determine the falling price reserves of inventories on an item-by-item basis.For inventories in large amount and low unit price, provision for inventory falling price reserves may be made bycategory of the inventories. For item of inventories relating to a product line that is produced and marketed in thesame geographical area, have the same or similar end uses or purposes, and cannot be practically measuredseparately from other items, provision for inventory falling price reserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the balance sheet date. Whenfactors causing written-down of the inventory value disappear, the amount written down shall be recovered andwill be reversed from the provided inventory falling price reserves. The amount reversed will be included incurrent profit or loss.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
12. Contract assets and contract liabilities
Under the contract between the Company and the customer, the Company shall be entitled to receive thecontract price for the goods transferred to the customer and for the related services provided, while at the sametime assuming the performance obligation to transfer the goods or services to the customer. When the customerhas actually paid the contract consideration or the enterprise has transferred goods or services to the customer
before such consideration is due and payable, the right to receive the consideration for the transferred goods orservices should be presented as a contract asset and recognized as an accounts receivable when the unconditionalright to receive is obtained; conversely, the Company's obligation to transfer goods or services to the customerfor the consideration received or receivable from the customer should be presented as a contract liability. Anycontract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods orprovide services to the customer. The Company presents contract asset and contract liability under the samecontract on a net basis.
13. Assets held for sale
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions asassets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on thepractice of selling such assets or disposal groups in similar transactions; 2) sales are highly likely to occur, that is,the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and thesale is expected to be completed within one year.
Non-current assets or disposal groups specifically obtained by the Company for resale shall be classifiedby the Company as held-for-sale on the acquisition date when they meet the stipulated conditions of ―expected tobe sold within one year‖ on the acquisition date, and may well satisfy the category of held-for-sale within a shorttime (which is usually three months).
If the transaction between non-related parties fails to be completed within one year due to one of thefollowing circumstances which is over the control of the Company, and the Company still promises to sell thenon-current assets or disposal groups, the Company should continue to classify the non-current assets or disposalgroups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of thesale. The Company has already acted on these conditions in a timely manner and it is expected to be able tosuccessfully deal with the conditions that led to the extension of the sale within one year after the conditionswere set; 2) due to unusual circumstances, the non-current assets or disposal groups held-for-sale failed to besold within one year. In the first year, the Company has taken necessary measures for these new conditions andthe assets or disposal groups meet the conditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups held for sale onthe balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs,the carrying value will be written down to the net amount of fair value minus the sale costs. The amount writtendown will be recognized as asset impairment loss and included in current profit and loss, and provision forimpairment of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall bemeasured at the lower of net amount of initial measurement amount minus sales cost and that of fair value minusselling expenses, assuming they were not classified as held-for-sale during initial measurement. Except for non-current assets or disposal groups acquired from business combination, the difference arising from taking the netamount of fair value minus sales cost as initial measurement amount of the non-current assets or disposal groupsshall be included in current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the carrying valueof goodwill of the disposal groups shall be offset first, and then the carrying value of various non-current assetsin the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciationor amortization. Interest and other expenses of liabilities in the disposal group held for sale shall still berecognized.
2) Accounting treatment for reversal of asset impairment loss
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheetdate minus the sale costs increases, the previous written-down amount will be restored and reversed from theasset impairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall beincluded in the current profit or loss. The asset impairment loss recognized before being classified as held-for-sale shall not be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet dateminus the sale costs increases, the previous written-down amount will be restored and reversed from the assetimpairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversedamount shall be included in the current profit or loss. The carrying value of goodwill which had been written
down and the asset impairment loss recognized before non-current assets being classified as held-for-sale shallnot be reversed.For the recognized amount of asset impairment loss of the disposal groups held for sale which is reservedsubsequently, the carrying value shall be increased according to the proportion of carrying value of various non-current assets (except for goodwill) in the disposal groups.
3) Accounting treatment for assets no longer classified as held-for-sale and derecognitionWhen a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current assetis removed from the disposal group held for sale due to failure in meeting the classification conditions for thecategory of held-for-sale, it will be measured by one of the followings, whichever is lower: a) Amount afteradjusting the carrying value before being classified as held for sale according to the depreciation, amortization orimpairment that would have been recognized under the assumption that it was not classified as held for sale; b)the recoverable amount.The gain or loss not yet recognized shall be included in current profit or loss when recognizing the non-current assets or disposal groups held for sale.
14. Long-term equity investments
(1) Determination of initial investment cost
a) Long-term equity investment from business combination
1) For the long-term equity investment in subsidiaries acquired through business combination involvingenterprises under the common control, the share of the carrying value of the owners' equity of the combinedparty in the ultimate controller's consolidated financial statements on the date of combination shall be taken asthe initial investment cost of the long-term equity investment. The share premium of the capital reserve shall beadjusted with the difference between the initial investment cost of the long-term equity investment and thecarrying value of the consideration paid. If the share premium of the capital reserve is insufficient for writingdown, the retained earnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinations involvingenterprises not under the common control, initial investment cost of the investment shall be the fair value of theassets paid, liabilities incurred or assumed and equity securities issued by the Company in exchange for controlover the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired throughbusiness combination involving enterprises not under the common control implemented by multiple transactions,the initial investment cost shall be the sum of the carrying value of equity investment held by the Company inthe acquiree before the date of acquisition and the cost of new investment on the date of acquisition.
b) For long-term equity investment acquired by cash payment, the initial investment cost shall be thepurchase price actually paid. The initial investment cost includes fees, taxes and other necessary expensesdirectly related to acquire the long-term equity investment.
c) For long-term equity investment acquired by issuing equity securities, the initial investment cost of long-term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equitysecurities.
d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetaryassets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-monetary assets has commercial nature and the fair value of the assets received or surrendered may be reliablymeasured, unless there is conclusive evidence providing that fair value of the assets received is more reliable.For exchange of non-monetary assets not meeting the above conditions, the initial investment cost shall be thecarrying value of the assets surrendered and relevant taxes payable.
e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall berecognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equityinvestment calculated by cost method shall be priced at the initial investment cost. The cost of long-term equityinvestment shall be adjusted when the investment is added or recovered. The cash dividends or profits declaredto be distributed by the invested company should be recognized as current return on investment.
The long-term equity investment in associates and joint ventures is accounted by the equity method.
If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets ofthe invested company gained from the investment, the initial cost of long-term equity investment shall not beadjusted. If the initial investment cost is smaller than the fair value of identifiable net assets of the investedcompany gained from the investment, the difference shall be included in current profit or loss, and the cost oflong-term equity investments shall be adjusted.
After the Company obtains a long-term equity investment, it shall, in accordance with the share of the netprofits and other comprehensive income of the invested company to be enjoyed or shared, recognize the returnon investment and other comprehensive income respectively, and adjust the carrying value of the long-termequity investment. The Company shall, in accordance with the share in the profits or cash dividends declared anddistributed by the invested company, decrease the carrying value of the long-term equity investment accordingly.As for other changes in owners' equity except for the net profit and loss, other comprehensive income andprofit distribution of the invested company, the Company shall adjust the carrying value of the long-term equityinvestment and include it into the owners' equity. When the share of the net profit or loss of the investedcompany is recognized, the net profit of the invested company shall be adjusted and recognized according to thefair value of the net identifiable assets of the invested company when the investment is made.For the transactions between the Company and associates and joint ventures, the unrealized gains andlosses of the internal transactions shall be offset by the proportion attributable to the Company, and the return oninvestment is recognized accordingly. Unrecorded internal transaction losses incurred between the Company andthe invested company shall be recognized in full if they fell under asset impairment loss.
The Company shall recognize the net losses of the invested company until the carrying value of the long-term equity investment and other long-term rights and interests which substantially form the net investmentmade to the invested company are reduced to zero, unless the Company has the obligation to undertake extralosses. If the invested company realizes a net profit in the subsequent period, the Company shall restore therecognition of its share in profits after its share in profits offsets the share in unrecognized losses.
If the accounting policy and accounting period adopted by the invested company are inconsistent withthose adopted by the Company, financial statements of the invested company shall be adjusted and return oninvestment and other comprehensive income shall be recognized according to the accounting policy andaccounting period of the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the carrying value and the actual priceat which the investment is obtained shall be included in current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment originallyincluded in other comprehensive income shall be accounted for on the same basis as the invested company'sdirect disposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result ofchanges in other owners' equity other than net profit or loss, other comprehensive income, and profit distributionof the invested company is carried forward proportionally into current profit or loss, except for othercomprehensive income arising from changes due to remeasurement of net liabilities or net assets of the definedbenefit plan.
In case of loss of common control or significant influence on the invested company due to disposal of partof the equity investments, residual equity will be accounted by the recognition and measurement criterion forfinancial instruments. The difference between the fair value on the date of losing common control or significantinfluence and the carrying value shall be included in current profit or loss. Other comprehensive incomerecognized due to accounting of the original equity investment by equity method shall be accounted for on thesame basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping usingequity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profitor loss, other comprehensive income and profit distribution of the invested company will all be carried forwardinto current profit or loss when stop using equity method.
If the Company disposes of part of the equity investment and loses control over the invested company, andif the remaining equity after disposal can implement joint control or exert significant influence on the investedcompany, it shall be accounted for using the equity method when the individual financial statements are prepared,and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method sinceacquired; if the remaining equity after disposal cannot implement joint control or exert significant influence onthe invested company, it shall be subject to accounting treatment in accordance with the relevant provisions ofthe criteria for recognition and measurement of financial instruments. The difference between the fair value andthe carrying value on the date of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such as additionalinvestment, the remaining equities after the disposal shall be calculated based on the cost method or equitymethod in preparing the individual financial statements, and other comprehensive income and other owners'equity recognized because of the equity method adopted for the calculation of the equity investment held prior tothe date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall bechanged to be accounted in accordance with the recognition and measurement criterion for financial instruments,other comprehensive income and other owners' equity shall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested companyCommon control means common control over an arrangement according to relevant provisions, and thedecision-making for relevant activities of such arrangement needs unanimous agreement of all participantssharing the control.Significant influence means having the power to participate in decision-making of the financial andoperating policies of the invested company, but not the power to control or jointly control the formulation ofthese policies together with other parties.
15. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services, renting oroperation and management and with service life of more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and otherexpenditures incurred before and for making the fixed assets reach its intended condition for use directlyattributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and formaking the fixed assets reach its intended condition for use.
Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting therecognition conditions for fixed assets, and shall be included in current profit or loss if not meeting therecognition conditions for fixed assets.
(2) Depreciation method
Category | Depreciation Method | Depreciation Life | Residual Rate | Yearly Depreciation Rate |
Tenements and Buildings | Straight-line method | 25-30 years | 3%-5% | 3.17-3.88% |
General equipment | Straight-line method | 10-12 years | 3%-5% | 7.92-9.70% |
Specialised equipment | Straight-line method | eight years | 3%-5% | 11.18-12.13% |
Transport equipment | Straight-line method | six years | 3%-5% | 15.83-16.17% |
Other equipment | Straight-line method | six years | 3%-5% | 15.83-16.17% |
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-linemethod (the straight-line depreciation) from the second month after they reach their intended serviceablecondition.
16. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary expenditures incurredbefore the assets reach its intended condition for use.
(2) Cost of fixed assets that have reached the intended condition for use but for which the completionsettlement has not been handled shall be recognized at the estimated value, and depreciation shall be provided.Adjustment shall be made to the originally and provisionally estimated value based on the actual cost after thecompletion settlement is handled, but depreciation already provided shall not be adjusted.
17. Borrowing costs
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition andconstruction or production of fixed assets, investment properties and inventories meeting the conditions ofcapitalization period and capitalization amount should be capitalized and included in the cost of such assets;other interest of borrowings, and amortization of discounts or premiums shall be included in expenses in currentperiod. The exchange differences incurred from special foreign currency borrowings for acquisition andconstruction or production of fixed assets and investment properties shall be capitalized and included in the costof such assets if it is within the capitalization period. Auxiliary expenses for special borrowings, if incurredbefore the fixed assets acquired or constructed reach the intended condition for use, shall be capitalized at thetime of occurrence; other auxiliary expenses shall be recognized as expenses in current period and included incurrent profit or loss.
(2) Capitalization period of borrowing costs:
a) Commencement of capitalization: Capitalization of borrowing interest, amortization of discount orpremium, and exchange differences shall be commenced when all the following conditions are met.
1) Asset expenditure has already occurred.
2) Borrowing costs have already occurred.
3) Acquisition and construction activities necessary to bring the assets to the intended condition for usehave already begun.b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interruptedabnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costsshall be suspended and the borrowing costs shall be recognized as current expenses until recommencement of theacquisition and construction of the asset.c) Termination of capitalization: When the fixed assets acquired and constructed reach the intendedcondition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the amount ofinterest expenses actually incurred in the current period less the interest income of the borrowings unused anddeposited in bank or the amount of return on investment from temporary investment. Interest of generalborrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements ofthe excess of accumulated asset disbursements over the special borrowings by the capitalization rate of usedgeneral borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
18. Right-of-use assets
Refer to "Part X, V. Significant Accounting Policies and Accounting Estimates, 28. Lease".
19. Intangible assets
(1) Valuation method, service life and impairment test
a) Valuation and amortization of intangible assets: Externally acquired intangible assets shall be measuredat the actual cost when acquired and averagely amortized during the expected service life since the month whenthe intangible assets is acquired; book value of the self-developed intangible assets shall be the sum of theexpenditures during the research and development stage of internal research and development projects of theCompany which are eligible for capitalization and the expenditures incurred before reaching the intendedcondition for use, and be averagely amortized over the expected service life since the month in which theintangible asset is ready for use.
b) Service life: Service life of intangible assets shall be analyzed and determined when acquired. Intangibleassets with limited service life shall be amortized over period during which they may bring economic interests; ifthe period during which the intangible assets may bring economic benefit to the enterprise is unforeseeable, suchintangible assets shall be considered as intangible assets with uncertain service life and shall not be amortized.
c) Impairment test: At the end of each year, the Company shall recheck the service life and amortizationmethod of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment testevery year whether there is any indication of impairment.
(2) Accounting policy for internal research and development costs
The expenditures of the Company’s internal research and development projects are divided into researchphase expenditures and development phase expenditures.
Research phase expenditures shall be included in current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets only when meetingall of the following conditions, otherwise shall be included in current profit or loss when incurred:
a) It is technically feasible to complete this intangible assets so that it can be used or sold.
b) The Company has the intention to complete the intangible assets and use or sell them.
c) The way in which intangible assets generate economic benefits, including the ability to prove that theproducts produced using the intangible assets exist in the market or the intangible assets themselves exist in themarket, and the intangible assets will be used internally, can prove their usefulness; sufficient technical, financialresources and other resources support to complete the development of the intangible asset and the ability to useor sell the intangible asset; the expenditure attributable to the development phase of the intangible asset can bereliably measured.
20. Long-term asset impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress,intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an
impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less thanits carrying value according to the test, provision for impairment will be made at the difference and included inimpairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting thedisposal expenses and the present value of estimated future cash flow of the asset. The provision for impairmentof assets is calculated and made on an individual basis. If it is difficult for the Company to estimate therecoverable amount of the individual asset, the recoverable amount of an asset group, to which the said assetbelongs, shall be determined. Asset group is the smallest asset group that can independently generate cashinflows.For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall becarried out in combination with the relevant asset group or combination of asset group.The carrying value of goodwill caused by business combination is amortized to relevant asset groups witha reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; oramortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. Whenthe carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shallbe evenly amortized according to the proportion of the fair value of each assets group or combination of assetsgroups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair valuecannot be reliably measured, it should be amortized according to the proportion of the carrying value of eachasset group or combination of assets groups in the total carrying value of assets groups or combinations of assetsgroups.
When making an impairment test on the relevant assets groups or combination of assets groups containinggoodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, theCompany shall first conduct an impairment test on the assets groups or combinations of assets groups notcontaining goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognizethe corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups orcombinations of assets groups containing goodwill, and compare the carrying value of these assets groups orcombinations of assets groups (including the carrying value of the goodwill apportioned thereto) with therecoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assetsgroups is lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.
21. Long-term prepaid expense
Long-term prepaid expense is recorded according to the actual amount incurred and amortized over thebenefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expenseitem cannot benefit a later accounting period, the amortized value of the item that has not been amortized shallbe transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement offixed assets under operating lease shall be amortized averagely within the benefit period.
22. Employee benefits
(1) Accounting treatment of short-term remuneration
Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within12 months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-term remuneration isrecognized as liabilities and included in current profit or loss or costs of relevant assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the enterpriseafter retirement from or termination of the labor relation with the enterprise in exchange for the service providedby the employee. Post-employment benefits are divided into two types: Defined contribution plans and definedbenefit plans.
a) Defined contribution plan: Contribution which shall be made by the Company separately on the balancesheet date in exchange for the service provided by the employee during the accounting period shall berecognized as payroll liabilities and included in current profit or loss or relevant asset cost.
b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, thebenefit obligations arising from the defined benefit plan shall be attributable to the period in which the employeeprovides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement ofthe net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income andshall not be reversed to profit or loss in subsequent accounting periods.
(3) Accounting treatment of dismissal benefits
Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of thelabor contract with the employee prior to expiration, or encouraging the employee to accept downsizingvoluntarily.If the enterprise provides dismissal benefits, payroll liabilities arising from dismissal benefits shall berecognized and included in current profit or loss on the earlier date of:
a) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by theplan or layoff proposal due to termination of the labor relation.
b) The date when the enterprise recognizes the cost or expense related to the reorganization related topayment of the dismissal benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration, post-employment benefits, and dismissal benefits, including long-term paid absences, long-term disability benefits,long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized and measured as netliability or net asset of other long-term employee benefits according to relevant provisions of the defined benefitplan, except for those meetings the conditions of defined contribution plan.
23. Lease liabilities
Refer to "Part X, V. Significant Accounting Policies and Accounting Estimates, 28. Lease".
24. Provisions
(1) Recognition criteria for provisions
When obligations related to contingencies meet the following conditions, the Company shall recognizethem as provisions:
a) The obligation is the current obligation assumed by the Company.
b) The performance of this obligation may result in the outflow of economic benefits.
c) The amount of this obligation can be reliably measured.
(2) Measurement method of provisions
Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shallbe initially measured at the best estimate of the required expenditure for the performance of current obligation. Ifthe time value of money is significant, the best estimate shall be determined after discounting relevant futurecash outflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjustthe carrying value to reflect current best estimate.
25. Revenue
Accounting policy for recognition and measurement of revenue
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that wouldresult in an increase in shareholders' equity and are unrelated to capital contributions by shareholders.
The Company recognizes revenue when it has fulfilled its performance obligations under the contract, thatis, when the customer obtains control of the relevant goods. Obtaining control over related goods means beingable to dominate the use of the goods and obtain almost all economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transactionprice to each individual performance obligation according to the relative proportion of the individual sellingprice of the goods or services promised under each individual performance obligation on the contractcommencement date, and measure the revenue according to the transaction price allocated to each individualperformance obligation.
Transaction price is the amount of consideration that the Company is expected to be received due to thetransfer of goods or services to customers, excluding the amount collected on behalf of third parties. Indetermining the transaction price of a contract, if variable consideration exists, the Company will determine thebest estimate of the variable consideration based on the expected or most likely amount and include in thetransaction price in an amount not exceeding the amount that the accumulated recognized revenue will mostlikely not be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financingcomponent in the contract, the Company will determine the transaction price according to the amount payable bythe customer in cash when obtaining the control right of the goods. The difference between the transaction priceand the contract consideration will be amortized by the effective interest rate method during the contract period.
If the interval between the transfer of control right and the payment price by the customer does not exceed oneyear, the Company will not consider the financing component.
Performance obligations are fulfilled within a certain period if any of the following conditions is met;otherwise, performance obligations are fulfilled at a certain point in time:
a) The customer acquires and consumes the economic benefits of the Company's performance at the sametime as the Company's performance;
b) The customer controls the goods under construction during the performance of the Company;
c) The goods produced by the Company during the performance of the contract have irreplaceable uses,and the Company has the right to collect money for the accumulated performance that has been completed so farduring the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue accordingto the performance progress within that period, except that the performance progress cannot be reasonablydetermined. The Company determines the performance progress of the services provided according to the inputmethod (or output method). When the performance progress cannot be reasonably determined, if the costsincurred by the Company are expected to be compensated, the revenue shall be recognized according to theamount of costs incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at thepoint when the customer obtains control of the relevant goods. When judging whether the customer has acquiredcontrol of goods or services, the Company will consider the following indications:
a) The Company has a present right to receive payment for the goods or services, i.e. the customer has apresent obligation to pay for the goods;
b) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legalownership of the goods;
c) The Company has physically transferred the goods to the customer, i.e. the customer has taken physicalpossession of the goods;
d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,i.e., the customer has acquired the principal risks and rewards of ownership of the good;
e) The customer has accepted the goods.
(2) Recognition methods of revenues
a) Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods to thebuyer according to the contract, and recognizes revenue after the buyer signs for it;
b) Recognition methods of revenues for direct sales model
1) Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer andreceives payment or acquires the right to receive payment;
2) On-line sales; Revenue is recognized when the Company receives the payment transferred from the e-commerce platform from the consumer.
26. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by the Company andused for acquisition or construction or for formation of long-term assets in other ways, including the financialallocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assetsand others.
The specific standard of the Company for classifying the government subsidies as asset-related subsidies:
government subsidies obtained by the Company and used for acquisition or construction or for formation oflong-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Companyclassifies the government subsidies as asset-related subsidies or income-related subsidies were as follows:
Whether the subsidies are used for acquisition or construction or for formation of long-term assets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Government subsidies, whenactually received, shall be recognized as deferred income and transferred equally to current profit or loss basedon the expected service life of the long-term assets when the long-term assets are available for use.
The asset-related government subsidies are recognized as deferred income, and included in current profit orloss by stages based on the service life of the assets acquired and constructed. If the related asset is sold,transferred, scrapped or damaged before the end of the service life, the deferred income balance not yetdistributed shall be transferred to the profits and losses of the period in which the assets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidiesIncome-related government subsidies refer to all the government subsidies other than asset-relatedgovernment subsidies.The specific standard of the Company for classifying the government subsidies as income-related subsidies:
All the government subsidies other than asset-related government subsidies.Timing of recognition of income-related government subsidies of the Company: Government subsidies,when actually received, shall be included in current profit or loss if used to compensate the relevant expenses orlosses of the Company in the subsequent period; included in current profit or loss directly when acquired if usedto compensate relevant expenses or losses incurred by the Company.Income-related government subsidies used to compensate the relevant expenses or losses of the Companyin the subsequent period shall be recognized as deferred income when acquired; included in current profit or lossin the period in which relevant expenses are recognized; those used to compensate relevant expenses or lossesincurred by the Company, shall be directly included in profit or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be included in other incomesor used to offset relevant costs and expenses according to the substance of the economic business. Thegovernment subsidies irrelevant to the daily activities of the Company shall be included in non-operatingrevenue.
27. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognized accordingto the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the taxlaw shall be considered as temporary difference, and corresponding deferred income tax assets shall berecognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferred income taxliabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets orliabilities incurred in the transaction not for business combination that will not affect the accounting profits andtaxable income (or deductible losses), corresponding deferred income tax assets and deferred income taxliabilities shall not be recognized. The deferred income tax assets and deferred income tax liabilities aremeasured on the balance sheet date according to the applicable tax rate in the period of expected recovery ofrelevant assets or liquidation of relevant liabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which the Company mayobtain for deducting deductible temporary differences, deductible losses and tax deduction. Deferred income taxassets and deferred income tax liabilities arising from temporary differences related to the investment insubsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlledby the Company and the temporary differences are likely to not be reversed in the foreseeable future, deferredincome tax assets and liabilities shall not be recognized.
28. Leases
From the effectiveness date of a contract, the Company assesses whether the contract is a lease or includesany lease. If a party to the contract transfers the right allowing the control over the use of one or more assets thathave been identified within a certain period, in exchange for a consideration, such contract is a lease or includesa lease.
(1) Accounting treatment of the Company as the lessee
On the commencement date of the lease term, except for short-term leases and leases of low-value assetsbeing adopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.
Right-of-use assets shall be initially measured at costs, including: a) The initial measurement amount of thelease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is alease incentive, the amount related to the lease incentive taken should be deducted; c) the initial direct costincurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leaseholdproperty, and restore the site of the leasehold property or restore the leasehold property to the state agreed in thelease clauses (excluding the costs incurred by inventories for production).
The lease liabilities shall be initially measured at the present value of the unpaid lease payment from thecommencement date of the lease term. When calculating the present value of lease payments, the Company usesthe interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,the Company’s incremental lending rate is used as the rate of discount.
After the commencement date of the lease term, the Company subsequently measures the right-of-useassets at cost model, and the right-of-use assets are subject to depreciation by using the straight-line method.
Meanwhile, the interest expenses of the lease liabilities in each period of the lease term are calculated, and shallbe included in the profit or loss for the current period, unless otherwise stipulated to be included in underlyingasset costs. Variable lease payments that are not covered in the measurement of the lease liabilities are includedin current profit or loss when actually incurred, unless otherwise stipulated to be included in underlying assetcosts.For short-term leases and leases of low-value assets, the Company chooses not to recognise right-of-useassets and lease liabilities. They are included in relevant asset cost or the profit or loss for the current period inthe straight-line method in each period of the lease term.
(2) Accounting treatment of the Company as the lessor
a) Classification of leaseThe Company classifies leases into finance leases and operating leases at the inception of leases. A financelease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, aresubstantially transferred, regardless of whether the ownership is eventually transferred or not. An operating leaserefers to all leases other than finance leases.b) Accounting treatment of financial leaseOn the commencement date of the lease term, the Company recognises the finance lease receivables for thefinance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance leasereceivables, the sum of the unsecured residual value and the present value of the lease payments receivable notyet received on the commencement date of the lease term discounted at the interest rate implicit in lease is thebook value of the finance lease receivables. The Company calculates and recognises the interest income in eachperiod within the lease term at a fixed interest rate implicit in the lease. The received variable lease paymentsthat are not included in the measurement of the net investment in the lease are included in profit or loss for thecurrent period when they are actually incurred.c) Accounting treatment of operating leaseThe Company recognises the lease payments receivable of the operating lease as rental earning in eachperiod within the lease term on a straight-line basis or according to other systematic and reasonable methods.The initial direct costs related to the operating lease are capitalised, amortised within the lease term on the samebasis as the recognition of rental earning, and included in profit or loss for the current period. The receivedvariable lease payments related to the operating lease that are not included in the lease payments receivable areincluded in profit or loss for the current period when they are actually incurred.
29. Changes to Significant Accounting Policies and Estimates
(1) Changes to Significant Accounting Policies
? Applicable □ Not applicable
Change and reason | Note |
In December 2021, the Ministry of Finance issued the Interpretation No. 15 for the Accounting Standards for Business Enterprises, with provisions regarding "accounting treatments for the sale of products or by-products produced by an enterprise before a fixed asset is ready for its intended use or in the course of research and development" and "judgment on loss-making contracts‖. The Company has implemented the aforementioned provisions since 1 January 2022. | The implementation of the provisions had no impact on the financial statements of the Company. |
In November 2022, the Ministry of Finance issued the Interpretation No. 16 for the Accounting Standards for Business Enterprises, with provisions regarding "accounting treatments for deferred income tax related to assets and liabilities arising from a single transaction that is not exempt from initial recognition", "accounting treatments for the income tax effects of dividends on financial instruments classified as equity instruments by the issuer", and "accounting treatments for the modification of share-based payments settled in cash to share-based payments settled in equity". The first provision will be implemented by the Company from 1 January 2023, while the second and third provisions will be implemented from the date of publication. | The implementation of the provisions had no impact on the financial statements of the Company. |
(2) Changes to Significant Accounting Estimates
□ Applicable ? Not applicable
VI Taxes
1. Main taxes and tax rates
Tax Item | Tax Basis | Tax Rate |
VAT | Taxable sales revenue | 13% (paid after offsetting input tax) |
Consumption tax | Taxable price or ex-factory price | 10%, 20% |
Urban maintenance and construction tax | Turnover tax payable | 7% |
Corporate income tax | Taxable income | 25% |
Education surcharge | Turnover tax payable | 3% |
Local education surcharge | Turnover tax payable | 2% |
Note on disclosure of taxpayer applying different corporate income tax rates:
Name of taxpayer | Income tax rate |
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | 15% |
Sichuan Yibin Plastic Packaging Materials Company Limited | 15% |
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | 15% |
Yibin Xinxing Packaging Co., Ltd. | 20% |
Sichuan Jiebeike Environmental Technology Co., Ltd. | 20% |
Sichuan Jinwuxin Technology Co., Ltd. | 20% |
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. | 20% |
Linzhang Desheng Liquor Trade Co., Ltd. | 20% |
Sichuan Wuliangye Tourist Agency Co., Ltd. | 20% |
2. Tax preference
(1) Value added tax (VAT)
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate ofsocial welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of SichuanProvince. The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VATPreferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the StateAdministration of Taxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverablevalue-added tax of each month = Number of disabled person employed by the taxpayer in current month xquadruple of the minimum wage of current month. The amount of value-added tax refunded in 2022 wasRMB72,322,800.00.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials CompanyLimited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to theAnnouncement of the Ministry of Finance and the State Taxation Administration on Continuing the CorporateIncome Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of theMinistry of Finance, the State Taxation Administration and the National Development and Reform Commission)has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., SichuanJinwuxin Technology Co., Ltd., Yibin Wuliangye Xinshengdai Liquor Co., Ltd., Linzhang Desheng LiquorTrade Co., Ltd. and Sichuan Wuliangye Tourist Agency Co., Ltd. conform to the provisions of the Notice onImplementing the Inclusive Tax Deduction Policy for Small and Micro Enterprises (C.SH. [2019] No. 13), andthe Announcement on Implementing the Preferential Income Tax Policies for Micro and Small Enterprises andIndividual Industrial and Commercial Households ([2021] No. 12), and the Announcement on the FurtherImplementation of Preferential Income Tax Policies for Micro and Small Enterprises ([2022] No. 13) jointlyissued by the Ministry of Finance and the State Taxation Administration, which specifying that if the annualtaxable income of small low-profit enterprises is less than RMB1 million, the taxable income shall be 12.5% ofsuch annual taxable income and the corporate income tax rate shall be 20%; if the annual taxable income is morethan RMB1 million but less than RMB3 million, the taxable income shall be 25% of such annual taxable incomeand the corporate income tax rate shall be 20%.
VII Notes to the Consolidated Financial Statements
1. Monetary assets
Unit: RMB
Item | Closing balance | Opening balance |
Cash on hand | 19,772.01 | 21,897.04 |
Bank deposits | 92,144,164,939.42 | 82,028,143,002.95 |
Other monetary assets | 214,242,264.36 | 307,791,027.75 |
Total | 92,358,426,975.79 | 82,335,955,927.74 |
Total amount restricted in use due to being mortgaged, in pledge, frozen, etc. | 192,532,713.23 | 307,498,340.40 |
Other information:
(1) Other monetary assets included the securities trading balance of RMB3,222.19 deposited with the YibinBusiness Department of Essence Securities, the security deposits for bank acceptance notes ofRMB192,004,714.62, the Tenpay account balance of RMB21,709,551.13, and other security deposits ofRMB524,776.42.
(2) Among other monetary assets, the securities trading balance of RMB3,222.19, the security deposits forbank acceptance notes of RMB192,004,714.62, and other security deposits of RMB524,776.42 were restricted inuse. Save as disclosed above, there were no other funds restricted in use due to being mortgaged, in pledge,frozen, etc.; nor there were funds deposited overseas and restricted in repatriation.
A liquor/wine production enterprise should disclose in detail whether there is any special interestarrangement where the Company and any of its stakeholders have a joint account for funds, etc.
□ Applicable ? Not applicable
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB
Item | Closing balance | Opening balance |
Bank acceptance notes | 23,859,058,132.07 | |
Letters of credit | 119,918,307.60 | |
Total | 119,918,307.60 | 23,859,058,132.07 |
As a result of the decreased discount rates on the notes during the current period, the Company changed thepurpose of managing its bank acceptance notes from notes receivable with the purpose of collecting contractualcash flows to notes receivable with the purposes of both collecting contractual cash flows when due and selling,which were reclassified from notes receivable to financial assets at fair value through other comprehensiveincome.
Unit: RMB
Category | Closing balance | Opening balance | ||||||||
Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
Notes receivable for which allowances for doubtful accounts are established |
on an individual basis | ||||||||||
Notes receivable for which allowances for doubtful accounts are established on a grouping basis | 119,918,307.60 | 100.00% | 119,918,307.60 | 23,859,058,132.07 | 100.00% | 23,859,058,132.07 | ||||
Of which: | ||||||||||
Bank acceptance notes | 23,859,058,132.07 | 100.00% | 23,859,058,132.07 | |||||||
Letters of credit | 119,918,307.60 | 100.00% | 119,918,307.60 | |||||||
Total | 119,918,307.60 | 100.00% | 119,918,307.60 | 23,859,058,132.07 | 100.00% | 23,859,058,132.07 |
Where the allowance for any doubtful note receivable is established using the general model of expectedcredit loss, please disclose allowance information as other receivables.
□ Applicable ? Not applicable
(2) Notes receivable in pledge at the end of the current period
The Company had no notes receivable pledged by the Company at the end of the period.
(3) Notes receivable endorsed or discounted by the Company at the end of the current period and notexpired yet on the balance sheet date
The Company had no notes receivable endorsed or discounted by the Company at the end of the period andnot expired yet on the balance sheet date.
(4) Notes transferred to accounts receivable by the Company at the end of the current period due tofailure of the drawer to perform
Notes transferred to accounts receivable by the Company at the end of the period due to failure of thedrawer to perform.
(5) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
3. Accounts receivable
(1) Accounts receivable presented by category
Unit: RMB
Category | Closing balance | Opening balance | ||||||||
Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
Accounts receivable for which allowances for doubtful accounts are established on an individual basis | 5,174,866.86 | 11.86% | 5,174,866.86 | 100.00% | 1,508,250.71 | 2.08% | 1,508,250.71 | 100.00% | ||
Of which: | ||||||||||
External customers | 5,174,866.86 | 11.86% | 5,174,866.86 | 100.00% | 1,508,250.71 | 2.08% | 1,508,250.71 | 100.00% | ||
Accounts receivable for which allowances for doubtful accounts are established on a grouping basis | 38,447,767.23 | 88.14% | 2,760,824.91 | 7.18% | 35,686,942.32 | 70,910,703.98 | 97.92% | 6,717,587.76 | 9.47% | 64,193,116.22 |
Of which: | ||||||||||
External customers | 22,700,453.71 | 52.04% | 2,760,824.91 | 12.16% | 19,939,628.80 | 50,946,303.21 | 70.35% | 6,717,587.76 | 13.19% | 44,228,715.45 |
Related parties | 15,747,313.52 | 36.10% | 0.00% | 15,747,313.52 | 19,964,400.77 | 27.57% | 19,964,400.77 | |||
Total | 43,622,634.09 | 100.00% | 7,935,691.77 | 18.19% | 35,686,942.32 | 72,418,954.69 | 100.00% | 8,225,838.47 | 11.36% | 64,193,116.22 |
Accounts receivable for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
Entity | Closing balance | |||
Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | Reason for allowance | |
Qu Liang | 1,411,528.44 | 1,411,528.44 | 100.00% | Expected to be unrecoverable |
Beijing Junhui Tianhong Trading Co., Ltd. | 1,174,891.71 | 1,174,891.71 | 100.00% | Expected to be unrecoverable |
Wang Xiubing | 872,596.00 | 872,596.00 | 100.00% | Expected to be unrecoverable |
Ningxiahong Zhongning Wolfberry Products Co., Ltd. | 516,135.60 | 516,135.60 | 100.00% | Expected to be unrecoverable |
Nanxi Daliangxin Food Co., Ltd. | 389,729.12 | 389,729.12 | 100.00% | Expected to be unrecoverable |
Hunan Liuyanghe Liquor Industry Co., Ltd. | 308,155.34 | 308,155.34 | 100.00% | Expected to be unrecoverable |
Sichuan Debo Daily Commodity Co., Ltd. | 294,230.65 | 294,230.65 | 100.00% | Expected to be unrecoverable |
Gushi County Yingjun Liquor | 207,600.00 | 207,600.00 | 100.00% | Expected to be unrecoverable |
Total | 5,174,866.86 | 5,174,866.86 |
Accounts receivable for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Item | Closing balance | ||
Gross amount | Allowance for doubtful account | Allowance as % of the gross amount | |
Accounts receivable for which allowances for doubtful accounts are established based on the external customer group | 22,700,453.71 | 2,760,824.91 | 12.16% |
Accounts receivable for which allowances for doubtful accounts are established based on the related party group | 15,747,313.52 | ||
Total | 38,447,767.23 | 2,760,824.91 |
Where the allowance for any doubtful account receivable is established using the general model of expectedcredit loss, please disclose allowance information as other receivables.
□ Applicable ? Not applicable
Accounts receivable presented by aging:
Unit: RMB
Aging | Gross amount |
Within 1 year (inclusive) | 35,188,964.20 |
1 to 2 years | 285,551.64 |
2 to 3 years | 66.00 |
More than 3 years | 8,148,052.25 |
3 to 4 years | 676,388.51 |
4 to 5 years | 708,459.63 |
More than 5 years | 6,763,204.11 |
Total | 43,622,634.09 |
(2) Allowances for doubtful accounts established, recovered or reversed in the current periodAllowances for doubtful accounts in the current period:
Unit: RMB
Category | Opening balance | Changes in the current period | Closing balance | |||
Established | Recovered or reversed | Written off | Others | |||
Accounts receivable for which allowances for doubtful accounts are established on an individual basis | 1,508,250.71 | 3,666,616.15 | 5,174,866.86 | |||
Accounts receivable for which allowances for doubtful accounts are established based on the external customer group | 6,717,587.76 | -3,950,913.85 | 5,849.00 | 2,760,824.91 | ||
Total | 8,225,838.47 | -284,297.70 | 5,849.00 | 7,935,691.77 |
(3) Accounts receivable actually written off in the current period
Unit: RMB
Item | Amount written off |
Beijing Feidi Jiahao Liquor Co., Ltd. | 5,849.00 |
Total | 5,849.00 |
(4) Top five entities with respect to accounts receivable
Unit: RMB
Entity | Closing balance of accounts receivable | As % of the closing balance of total accounts receivable | Closing balance of allowances for doubtful accounts |
Sichuan Putian Packaging Co., Ltd. | 9,704,093.72 | 22.25% | |
Shanxi Pangquan Distillery Co., Ltd. | 2,515,132.00 | 5.77% | 125,756.60 |
Chengdu Huayu Glass Manufacturing Co., Ltd. | 2,274,390.13 | 5.21% | |
Hebei Boqiang Plastic Products Co., Ltd. | 2,206,346.19 | 5.06% | 110,317.31 |
Yibin Guanghua Packaging Co., Ltd. | 2,007,197.14 | 4.60% | 100,359.86 |
Total | 18,707,159.18 | 42.89% |
(5) Amount of assets and liabilities formed due to the transfer of accounts receivable and continuousinvolvementAt the end of the current period, the Company had no assets or liabilities formed due to the transfer ofaccounts receivable and continuous involvement.
(6) Accounts receivable derecognized due to the transfer of financial assets
At the end of the current period, the Company had no accounts receivable derecognized due to the transferof financial assets.
4. Receivables financing
Unit: RMB
Item | Closing balance | Opening balance |
Bank acceptance notes | 28,904,198,420.44 | 1,641,509,588.69 |
Total | 28,904,198,420.44 | 1,641,509,588.69 |
Changes in receivables financing and in their fair value in the current period:
? Applicable □ Not applicableThe Company, based on the management purpose of notes receivable, classified notes receivable forreceiving contractual cash flows and selling as financial assets at fair value through other comprehensive income.
Where the allowance for any doubtful receivable financing is established using the general model ofexpected credit loss, please disclose allowance information as other receivables.
? Applicable □ Not applicable
Unit: RMB
Category | Closing balance | Opening balance | ||||||||
Gross amount | Allowance for doubtful account | Carrying amount | Gross amount | Allowance for doubtful account | Carrying amount | |||||
Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | Amount | As % of the total gross amount | Amount | Allowance as % of the gross amount | |||
Receivables financing for which allowances for doubtful accounts are established on an individual basis | ||||||||||
Receivables financing for which allowances for doubtful accounts are established on a grouping basis | 28,904,198,420.44 | 100.00% | 28,904,198,420.44 | 1,641,509,588.69 | 100.00% | 1,641,509,588.69 | ||||
Of which: Bank acceptance notes | 28,904,198,420.44 | 100.00% | 28,904,198,420.44 | 1,641,509,588.69 | 100.00% | 1,641,509,588.69 | ||||
Total | 28,904,198,420.44 | 100.00% | 28,904,198,420.44 | 1,641,509,588.69 | 100.00% | 1,641,509,588.69 |
(2) Receivables financing in pledge at the end of the current period
Unit: RMB
Item | Closing amount in pledge |
Bank acceptance notes | 117,021,640.00 |
Total | 117,021,640.00 |
Notes: The bank acceptance pledged by the Company at the end of the current period is mainly arising fromthe Company’s pledge of notes in large amount to the bank and the issuance of notes in small amount forexternal payments.
(3) Receivables financing endorsed or discounted by the Company at the end of the period and not expiredyet on the balance sheet date
Unit: RMB
Item | Amount derecognized at the end of the period | Amount not yet derecognized at the end of the period |
Bank acceptance notes | 2,368,263,504.29 | |
Total | 2,368,263,504.29 |
(4) Receivables financing transferred the notes to accounts receivable by the Company at the end of theperiod due to failure of the drawer to perform.
(5) The Company had no receivables financing actually written off at the end of the period.
5. Prepayments
(1) Prepayments presented by aging
Unit: RMB
Aging | Closing balance | Opening balance | ||
Amount | As % of total prepayments | Amount | As % of total prepayments | |
Within 1 year | 71,127,726.38 | 52.31% | 147,104,566.14 | 75.19% |
1 to 2 years | 23,434,210.61 | 17.23% | 8,669,096.35 | 4.43% |
2 to 3 years | 3,031,956.47 | 2.23% | 2,832,862.76 | 1.45% |
More than 3 years | 38,388,974.68 | 28.23% | 37,046,449.17 | 18.93% |
Total | 135,982,868.14 | 195,652,974.42 |
Reasons for non-timely settlement of prepayments in significant amount with the aging more than one year:
Prepayments with the aging more than one year are mainly the prepayments to Yibin Guoding Gas Co., Ltd.for the gas source as agreed.
(2) Top five entities with respect to prepayments
Unit: RMB
Entity | Closing balance | As % of the closing balance of total prepayments |
Yibin Guoding Gas Co., Ltd. | 28,160,000.00 | 20.71% |
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | 18,900,000.00 | 13.90% |
Wankai New Materials Co., Ltd. | 6,163,036.00 | 4.53% |
Sichuan Qichen Trading Co., Ltd. | 6,148,180.50 | 4.52% |
China National Petroleum Corporation, Southwest Chemical Sales Branch | 5,489,112.20 | 4.04% |
Total | 64,860,328.70 | 47.70% |
6. Other receivables
Unit: RMB
Item | Closing balance | Opening balance |
Other receivables | 30,901,231.69 | 26,288,496.24 |
Total | 30,901,231.69 | 26,288,496.24 |
(1) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature | Closing gross amount | Opening gross amount |
Cash float | 4,232,009.46 | 4,850,891.36 |
Current account | 2,980,205.78 | 3,783,822.76 |
Security deposits | 26,975,912.31 | 18,850,679.72 |
Other advance money for others or temporary payment | 5,094,260.41 | 5,464,059.31 |
Total | 39,282,387.96 | 32,949,453.15 |
2) Allowances for doubtful accounts
Unit: RMB
Allowances for doubtful accounts | Stage 1 | Stage 2 | Stage 3 | Total |
12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
Balance as at 1 January 2022 | 6,657,087.06 | 3,869.85 | 6,660,956.91 | |
Balance as at 1 January 2022 was in the current period | ||||
- Transferred to Stage 2 | ||||
- Transferred to Stage 3 | ||||
- Transferred back to Stage 2 | ||||
- Transferred back to Stage 1 | ||||
Established in the current period | 1,722,230.36 | 1,722,230.36 | ||
Reversed in the current period | ||||
Charged off in the current period | ||||
Written off in the current period | 2,031.00 | 2,031.00 | ||
Other changes | ||||
Balance as at 31 December 2022 | 8,379,317.42 | 1,838.85 | 8,381,156.27 |
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
Other receivables presented by aging:
Unit: RMB
Aging | Gross amount |
Within 1 year (inclusive) | 17,581,713.35 |
1 to 2 years | 3,323,404.48 |
2 to 3 years | 5,059,243.45 |
More than 3 years | 13,318,026.68 |
3 to 4 years | 3,963,253.36 |
4 to 5 years | 6,209,638.20 |
More than 5 years | 3,145,135.12 |
Total | 39,282,387.96 |
3) Allowances for doubtful accounts established, recovered or reversed in the current periodAllowances for doubtful accounts in the current period:
Unit: RMB
Category | Opening balance | Changes in the current period | Closing balance | |||
Established | Recovered or reversed | Written off | Others | |||
Other receivables for which allowances for doubtful accounts are established on an individual basis | 3,869.85 | 2,031.00 | 1,838.85 | |||
Other receivables for which allowances for doubtful accounts are established based on the credit risk chacteristic group | 6,657,087.06 | 1,722,230.36 | 8,379,317.42 | |||
Total | 6,660,956.91 | 1,722,230.36 | 2,031.00 | 8,381,156.27 |
4) Other receivables actually written off in the current period
Unit: RMB
Item | Amount written off |
Zhou Zhiqiang | 2,031.00 |
Total | 2,031.00 |
5) Top five entities with respect to other receivables
Unit: RMB
Entity | Nature of account | Closing balance | Aging | As % of the closing balance of total other receivables | Closing balance of allowances for doubtful accounts |
Yibin Zhongqi Natural Gas Co., Ltd. | Security deposit | 8,000,000.00 | Within 1year; 2-3 years | 20.37% | 920,000.00 |
Yibin Cuiping District Housing and Urban-Rural Development Bureau | Security deposit | 5,000,000.00 | 4-5 years | 12.73% | 2,500,000.00 |
China National Petroleum Corporation, Sichuan Yi Saibin Sales Branch | Temporary payment | 1,831,508.70 | Within 1year; 1-2 years | 4.66% | 73,552.85 |
Chongqing Xibolesi Building Engineering Co., Ltd. | Advance money for others | 1,671,340.32 | More than 5 years | 4.25% | 1,337,072.26 |
Xu Wenwen | Cash float | 1,289,963.40 | Within 1year | 3.28% | 38,698.90 |
Total | 17,792,812.42 | 45.29% | 4,869,324.01 |
7. Inventory
(1) Classification of inventory
Unit: RMB
Item | Closing balance | Opening balance | ||||
Gross amount | Inventory valuation allowances or impairment allowances for contract performance costs | Carrying amount | Gross amount | Inventory valuation allowances or impairment allowances for contract performance costs | Carrying amount | |
Raw materials | 707,788,815.54 | 5,923,783.20 | 701,865,032.34 | 775,478,393.21 | 6,475,077.13 | 769,003,316.08 |
Goods in process | 1,198,799,326.25 | 1,198,799,326.25 | 1,140,224,322.36 | 1,140,224,322.36 |
Inventory of goods | 2,498,986,318.92 | 30,602,282.53 | 2,468,384,036.39 | 1,609,230,590.03 | 31,291,117.30 | 1,577,939,472.73 |
Turnover materials | 3,026,557.39 | 436,409.41 | 2,590,147.98 | 2,481,991.95 | 436,409.41 | 2,045,582.54 |
Goods issued | 105,088,512.68 | 1,956,236.12 | 103,132,276.56 | 191,350,703.16 | 1,956,236.12 | 189,394,467.04 |
Homemade semi-finished products | 11,388,060,199.27 | 150,386.01 | 11,387,909,813.26 | 10,218,594,324.45 | 150,386.01 | 10,218,443,938.44 |
Packing materials | 15,916,796.10 | 15,916,796.10 | 16,029,954.45 | 15,916,796.10 | 113,158.35 | |
Manufacturing consignment materials | 86,136,817.83 | 86,136,817.83 | 86,246,622.66 | 86,246,622.66 | ||
Goods in transit | 31,839,562.96 | 31,839,562.96 | 31,656,238.05 | 31,656,238.05 | ||
Total | 16,035,642,906.94 | 54,985,893.37 | 15,980,657,013.57 | 14,071,293,140.32 | 56,226,022.07 | 14,015,067,118.25 |
(2) Classification of merchandise on hand
Unit: RMB
Item | Closing balance | Opening balance | ||||
Gross amount | Valuation allowances | Carrying amount | Gross amount | Valuation allowances | Carrying amount | |
Liquor | 1,937,262,431.76 | 1,937,262,431.76 | 1,045,634,821.36 | 1,045,634,821.36 | ||
Plastic products | 290,783,376.85 | 1,367,676.36 | 289,415,700.49 | 383,408,719.29 | 2,133,613.56 | 381,275,105.73 |
Printing | 38,532,766.99 | 15,558,180.76 | 22,974,586.23 | 52,359,687.34 | 13,613,249.08 | 38,746,438.26 |
Glass bottles | 176,993,699.53 | 12,986,459.20 | 164,007,240.33 | 71,528,868.04 | 10,402,859.31 | 61,126,008.73 |
Others | 55,414,043.79 | 689,966.21 | 54,724,077.58 | 56,298,494.00 | 5,141,395.35 | 51,157,098.65 |
Total | 2,498,986,318.92 | 30,602,282.53 | 2,468,384,036.39 | 1,609,230,590.03 | 31,291,117.30 | 1,577,939,472.73 |
(3) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
Established | Others | Reversed or charged off | Others | |||
Raw materials | 6,475,077.13 | 551,293.93 | 5,923,783.20 | |||
Inventory of goods | 31,291,117.30 | 5,552,799.12 | 6,241,633.89 | 30,602,282.53 | ||
Turnover materials | 436,409.41 | 436,409.41 | ||||
Packing materials | 15,916,796.10 | 15,916,796.10 | ||||
Goods issued | 1,956,236.12 | 1,956,236.12 | ||||
Semi-finished products | 150,386.01 | 150,386.01 | ||||
Total | 56,226,022.07 | 5,552,799.12 | 6,792,927.82 | 54,985,893.37 |
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costsNone
(5) Notes of the amount of contract performance costs amortized for the current periodNone
8. Long-term equity investments
Unit: RMB
Investee | Opening balance (carrying amount) | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balanc | |||||||
Increase in investment | Decrease in | Return on investment recognized using the equity method | Adjustment to other | Other equit | Declared cash dividends or profit | Impairment | Others |
investment | comprehensive income | y changes | allowance | e of impairment allowance | |||||||
I Joint ventures | |||||||||||
II Associates | |||||||||||
Oriental Outlook Media Co., Ltd. | 25,565,938.31 | 563,199.61 | 26,129,137.92 | ||||||||
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,865,633,396.55 | 87,543,010.97 | 23,038,080.00 | 1,930,138,327.52 | |||||||
Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | 5,508,129.61 | 5,625,000.00 | -486,541.11 | 10,646,588.50 | |||||||
Yibin Jiamei Intelligent Packaging Co., Ltd. | 14,521,189.16 | 4,952,281.68 | 19,473,470.84 | ||||||||
Sub-total | 1,911,228,653.63 | 5,625,000.00 | 92,571,951.15 | 23,038,080.00 | 1,986,387,524.78 | ||||||
Total | 1,911,228,653.63 | 5,625,000.00 | 92,571,951.15 | 23,038,080.00 | 1,986,387,524.78 |
Other information:
(1) The Company invested in Oriental Outlook Media Co., Ltd., an associate of the Company, forimplementing the strategy of entering the media industry. The Company contributed RMB17.15 million in April2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by China Worldbest Group,Shanghai Worldbest Co., Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24October 2012, the Company, Wuliangye Group and six of its subsidiaries, and ABC International HoldingsLimited jointly invested and established Wuliangye Group Finance. Its registered capital is RMB2 billion,among which the Company contributed RMB720 million, taking up 36% of the registered capital.
On 23 May 2020, the 74th meeting of the 5th Board of Directors of the Company considered and approvedthe capital increase of the Company to Wuliangye Group Finance based on the net asset value per share ofWuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase ofRMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered capital and RMB202,962,041.73was credited to capital reserve. In this capital increase, the related party Sichuan Yibin Wuliangye Group Co.,Ltd. increased its capital at the same price, and the remaining shareholders of Wuliangye Group Finance did notparticipate in this capital increase. After the completion of this capital increase, the registered capital ofWuliangye Group Finance increased from RMB2 billion to RMB3,085,619,164.80, and the shareholding ratio ofthe Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, andShenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established Yibin Jiamei IntelligentPackaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co., Ltd. include research anddevelopment, platemaking, printing, production and sales of packaging products. Its registered capital is RMB20million, among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB9.8 million, takingup 49% of the registered capital.
(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5February 2021, the Company, Beijing Zhongjiuhuicui Exhibition Co., Ltd. Sichuan Wine and Tea InvestmentGroup Co., Ltd., Sichuan Science and Engineering Asset Management Co., Ltd., Sichuan Jingwei EducationManagement Group Co., Ltd., and Yibin Vocational & Technical College Asset Operation and Management Co.,Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co., Ltd. Its registeredcapital is RMB54 million, among which the Company contributed RMB11.25 million, taking up 20.83% of theregistered capital.
9. Other non-current financial assets
Unit: RMB
Item | Closing balance | Opening balance |
Sichuan Chinese Liquor Jinshanjiao Brand Operation and Development Co., Ltd. | 1,200,000.00 | 1,200,000.00 |
Total | 1,200,000.00 | 1,200,000.00 |
10. Fixed assets
Unit: RMB
Item | Closing balance | Opening balance |
Fixed assets | 5,311,203,941.09 | 5,607,863,056.26 |
Disposal of fixed assets | 1,767,504.52 | 2,283,944.11 |
Total | 5,312,971,445.61 | 5,610,147,000.37 |
(1) Information on fixed assets
Unit: RMB
Item | Buildings and constructions | Specialised equipment | General equipment | Transport equipment | Other equipment | Total |
I Gross amount: | ||||||
1. Opening balance | 8,797,174,386.17 | 3,093,820,422.08 | 2,167,789,285.29 | 163,972,215.17 | 681,867,695.24 | 14,904,624,003.95 |
2. Increases in the current period | 5,246,881.01 | 57,310,748.50 | 117,902,600.47 | 28,581,398.54 | 29,516,927.32 | 238,558,555.84 |
(1) Acquisition | 2,206,685.48 | 43,085,460.11 | 107,013,920.72 | 28,581,398.54 | 18,916,799.79 | 199,804,264.64 |
(2) Transferred from construction in progress | 3,040,195.53 | 14,225,288.39 | 10,888,679.75 | 10,600,127.53 | 38,754,291.20 | |
(3) Increase from business combination | ||||||
3. Decreases in the current period | 130,232,923.88 | 63,871,629.78 | 347,903,459.38 | 36,887,562.17 | 29,012,925.93 | 607,908,501.14 |
(1) Disposed or scrapped | 130,173,171.23 | 63,871,629.78 | 336,538,123.38 | 36,887,562.17 | 29,012,925.93 | 596,483,412.49 |
(2) Donation | ||||||
(3) Others | 59,752.65 | 11,365,336.00 | 11,425,088.65 | |||
4. Closing balance | 8,672,188,343.30 | 3,087,259,540.80 | 1,937,788,426.38 | 155,666,051.54 | 682,371,696.63 | 14,535,274,058.65 |
II Accumulated depreciation | ||||||
1. Opening balance | 4,133,514,850.60 | 2,809,105,163.85 | 1,677,332,760.07 | 105,098,035.25 | 563,256,309.76 | 9,288,307,119.53 |
2. Increases in the current period | 296,720,447.34 | 51,343,108.66 | 49,986,363.31 | 13,598,118.53 | 29,300,410.77 | 440,948,448.61 |
(1) Provisions | 296,720,447.34 | 51,343,108.66 | 49,986,363.31 | 13,598,118.53 | 29,300,410.77 | 440,948,448.61 |
3. Decreases in the current period | 88,999,470.17 | 61,983,777.84 | 318,936,698.91 | 34,946,362.95 | 27,068,182.25 | 531,934,492.12 |
(1) Disposed or scrapped | 88,988,274.87 | 61,983,777.84 | 307,915,155.40 | 34,946,362.95 | 27,068,182.25 | 520,901,753.31 |
(2) Donation | ||||||
(3) Others | 11,195.30 | 11,021,543.51 | 11,032,738.81 | |||
4. Closing balance | 4,341,235,827.77 | 2,798,464,494.67 | 1,408,382,424.47 | 83,749,790.83 | 565,488,538.28 | 9,197,321,076.02 |
III Impairment allowances |
1. Opening balance | 1,544,029.33 | 5,782,681.58 | 656,514.70 | 470,602.55 | 8,453,828.16 | |
2. Increases in the current period | 13,868,555.42 | 6,530,068.67 | 255,099.56 | 937.10 | 20,654,660.75 | |
(1) Provisions | 13,868,555.42 | 6,530,068.67 | 255,099.56 | 937.10 | 20,654,660.75 | |
3. Decreases in the current period | 2,359,447.37 | 2,359,447.37 | ||||
(1) Disposed or scrapped | 2,359,447.37 | 2,359,447.37 | ||||
4. Closing balance | 15,412,584.75 | 9,953,302.88 | 911,614.26 | 471,539.65 | 26,749,041.54 | |
IV Carrying amount | ||||||
1. Closing carrying amount | 4,315,539,930.78 | 278,841,743.25 | 528,494,387.65 | 71,916,260.71 | 116,411,618.70 | 5,311,203,941.09 |
2. Opening carrying amount | 4,662,115,506.24 | 278,932,576.65 | 489,800,010.52 | 58,874,179.92 | 118,140,782.93 | 5,607,863,056.26 |
(2) Fixed assets that are temporarily idle
The Company has no major fixed assets that are temporarily idle.
(3) Fixed assets leased out under operating leases
Unit: RMB
Item | Closing carrying amount |
Buildings and constructions | 109,486,889.71 |
Total | 109,486,889.71 |
(4) Fixed assets without certificate of title
Unit: RMB
Item | Carrying amount | Reason for not obtaining certificate of title |
Buildings and constructions | 800,150,312.30 | The certificate of title has not been obtained due to historical reasons, to which the Company has attached great importance and planned to obtain the certificate of title gradually. |
Buildings and constructions | 3,601,131.98 | In progress |
Total | 803,751,444.28 |
Other information:
According to the Interim Regulation on Real Estate Registration of Sichuan Province 2016, the propertyownership certificate and the land use certificate are integrated into the real estate ownership certificate. TheCompany is sorting out relevant assets and handling with the certificate of title of relevant assets.
(5) Disposal of fixed assets
Unit: RMB
Item | Closing balance | Opening balance |
Equipment | 1,767,504.52 | 2,283,944.11 |
Total | 1,767,504.52 | 2,283,944.11 |
11. Construction in progress
Unit: RMB
Item | Closing balance | Opening balance |
Construction in progress | 3,770,609,910.77 | 2,643,541,772.83 |
Project goods and materials | 2,546,073.18 | 2,546,073.18 |
Total | 3,773,155,983.95 | 2,646,087,846.01 |
(1) Construction in progress
Unit: RMB
Project | Closing balance | Opening balance | ||||
Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
The liquor packaging and integrated smart storage-and-delivery project | 1,078,547,581.94 | 1,078,547,581.94 | 653,863,297.65 | 653,863,297.65 | ||
Baijiu Cellar Renovation Project | 803,231,249.04 | 803,231,249.04 | 561,927,859.73 | 561,927,859.73 | ||
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 566,214,173.72 | 566,214,173.72 | 551,044,953.58 | 551,044,953.58 | ||
Hongba New Park Supporting Facilities Construction Project | 264,584,722.28 | 264,584,722.28 | 170,985,026.40 | 170,985,026.40 | ||
Brewing Special Grain Process Bin & Milling Automation Renovation Project | 213,100,568.24 | 213,100,568.24 | 110,513,220.77 | 110,513,220.77 | ||
Marketing Centre Construction Project | 80,451,935.66 | 80,451,935.66 | 6,607,740.78 | 6,607,740.78 | ||
100,000-ton Ecological Brewery Project (Phase I) | 45,707,989.86 | 45,707,989.86 | ||||
Pipe Network Reconstruction Project of Jiangbei Park | 38,861,543.75 | 38,861,543.75 | 37,438,811.11 | 37,438,811.11 | ||
Phase II of 90-Thousand-Ton Pottery Jar Aging Spirit Room Technical innovation Project (Phase VI) | 34,528,685.42 | 34,528,685.42 | 32,843,685.42 | 32,843,685.42 | ||
Anlequan Scenic Area Upgrade Emergency Project | 32,447,494.28 | 32,447,494.28 | 29,657,494.28 | 29,657,494.28 | ||
Pilot Project for the Expansion of the Research and Application of Traditional Solid Baijiu Production Responding to the Restriction of High temperature in Hot Season | 26,518,531.22 | 26,518,531.22 | 18,606,364.43 | 18,606,364.43 | ||
503 Workshop Appearance Upgrade | 20,968,792.45 | 20,968,792.45 | 20,968,792.45 | 20,968,792.45 | ||
523 Workshop Expansion and Renovation Project | 11,357,798.14 | 11,357,798.14 | ||||
Factory Buildings and Other Buildings Renovation Project of the Company (Phase II) | 20,754,455.03 | 20,754,455.03 | 34,238,205.03 | 34,238,205.03 | ||
High-end Intelligent Oxyfuel Kiln (8#) Crystal Glass Bottles Demonstration Production Line Renovation Project | 17,444,335.98 | 17,444,335.98 | ||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase III) | 15,003,189.00 | 15,003,189.00 | 14,992,917.35 | 14,992,917.35 |
506 Workshop Blending Center Upgrading and Renovation Project | 14,726,158.45 | 14,726,158.45 | 10,376,158.46 | 10,376,158.46 | ||
New Finished Product Warehouse Construction Project | 14,051,582.78 | 14,051,582.78 | ||||
Wuliangye Distillery Main Water Pipe Renovation Project | 13,401,990.72 | 13,401,990.72 | 12,551,990.72 | 12,551,990.72 | ||
Project of the Conversion of No. 1 Natural Gas Kiln to a Fully Electric Fusion Kiln Production Line | 10,693,940.81 | 10,693,940.81 | ||||
Installation of online monitoring equipment in the gas boiler room of Workshop 510 | 10,321,392.48 | 10,321,392.48 | ||||
Wastewater Treatment Capacity Upgrade Project | 10,078,673.88 | 10,078,673.88 | 797,118.40 | 797,118.40 | ||
Emergent Maintenance and Rectification of Ageing Group 521-2 (Sixty–Thousand-Tons) Wine Cellar and Adjacent Accommodation | 9,290,000.00 | 9,290,000.00 | 13,790,000.00 | 13,790,000.00 | ||
Miscellaneous works | 420,723,131.19 | 2,400,005.55 | 418,323,125.64 | 364,738,141.82 | 2,400,005.55 | 362,338,136.27 |
Total | 3,773,009,916.32 | 2,400,005.55 | 3,770,609,910.77 | 2,645,941,778.38 | 2,400,005.55 | 2,643,541,772.83 |
(2) Changes in important construction in progress in the current period
Unit: RMB
Project | Budget | Opening balance | Increase in the current period | Transferred to fixed assets in the current period | Other decreases in the current period | Closing balance | Cumulative project investment as % of the budget | Project progress | Cumulative capitalized interest | Of which: Capitalized interest in the current period | Interest capitalization rate for the current period | Funding source |
The liquor packaging and integrated smart storage-and-delivery project | 8,596,655,000.00 | 653,863,297.65 | 424,684,284.29 | 1,078,547,581.94 | 12.55% | 33% (note) | Owned and raised funds |
Baijiu Cellar Renovation Project | 1,726,166,000.00 | 561,927,859.73 | 241,303,389.31 | 803,231,249.04 | 46.53% | 97% | Owned and raised funds and subsidies | |||||
300-Thousand-Ton Pottery Jar Aging Spirit Room (Phase I) | 857,070,000.00 | 551,044,953.58 | 15,169,220.14 | 566,214,173.72 | 66.08% | 99% | Owned funds and subsidies | |||||
Hongba New Park Supporting Facilities Construction Project | 655,122,000.00 | 170,985,026.40 | 93,599,695.88 | 264,584,722.28 | 40.39% | 90% | Owned funds | |||||
Brewing Special Grain Process Bin & Milling Automation Renovation Project | 414,160,100.00 | 110,513,220.77 | 102,587,347.47 | 213,100,568.24 | 51.58% | 99% | Owned funds and subsidies | |||||
Marketing Centre Construction Project | 170,954,000.00 | 6,607,740.78 | 73,844,194.88 | 80,451,935.66 | 47.06% | 99% | Owned and raised funds | |||||
100,000-ton Ecological Brewery Project (Phase I) | 1,407,954,000.00 | 45,707,989.86 | 45,707,989.86 | 3.25% | 30% | Owned funds | ||||||
Pipe Network Reconstruction Project of Jiangbei Park | 109,396,900.00 | 37,438,811.11 | 1,422,732.64 | 38,861,543.75 | 36.40% | 99.8% | Owned funds | |||||
Phase II of 90-Thousand-Ton Pottery Jar Aging Spirit Room Technical innovation Project (Phase VI) | 50,552,120.00 | 32,843,685.42 | 1,685,000.00 | 34,528,685.42 | 68.30% | 100% | Owned funds | |||||
Anlequan Scenic Area Upgrade Emergency Project | 46,744,700.00 | 29,657,494.28 | 2,790,000.00 | 32,447,494.28 | 70.59% | 99% | Owned funds | |||||
Pilot Project for the Expansion of the Research and Application of Traditional Solid Baijiu | 47,044,400.00 | 18,606,364.43 | 7,912,166.79 | 26,518,531.22 | 56.37% | 99% | Owned funds |
Production Responding to the Restriction of High temperature in Hot Season | ||||||||||||
503 Workshop Appearance Upgrade | 69,690,500.00 | 20,968,792.45 | 20,968,792.45 | 30.09% | 99% | Owned funds | ||||||
523 Workshop Expansion and Renovation Project | 84,526,000.00 | 11,357,798.14 | 11,357,798.14 | 13.44% | 99% | Owned funds | ||||||
Factory Buildings and Other Buildings Renovation Project of the Company (Phase II) | 201,841,000.00 | 34,238,205.03 | 4,000,000.00 | 17,483,750.00 | 20,754,455.03 | 28.98% | 30% | Owned funds | ||||
High-end Intelligent Oxyfuel Kiln (8#) Crystal Glass Bottles Demonstration Production Line Renovation Project | 64,329,600.00 | 17,444,335.98 | 17,444,335.98 | 27.12% | 85% | Owned funds | ||||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase III) | 37,490,000.00 | 14,992,917.35 | 10,271.65 | 15,003,189.00 | 40.39% | 99% | Owned funds | |||||
506 Workshop Blending Center Upgrading and Renovation Project | 29,884,165.00 | 10,376,158.46 | 4,349,999.99 | 14,726,158.45 | 49.28% | 99% | Owned funds | |||||
New Finished Product Warehouse Construction Project | 29,111,257.68 | 14,051,582.78 | 14,051,582.78 | 48.27% | 98% | Owned funds | ||||||
Wuliangye Distillery Main Water Pipe Renovation Project | 21,499,200.00 | 12,551,990.72 | 850,000.00 | 13,401,990.72 | 62.34% | 99% | Owned funds | |||||
Project of the Conversion of No. 1 Natural Gas Kiln to a Fully Electric Fusion Kiln Production Line | 37,000,000.00 | 10,693,940.81 | 10,693,940.81 | 28.90% | 95% | Owned funds | ||||||
Installation of online monitoring equipment in the gas boiler room of Workshop 510 | 25,563,900.00 | 10,321,392.48 | 10,321,392.48 | 40.37% | 99% | Owned funds |
Wastewater Treatment Capacity Upgrade Project | 89,330,700.00 | 797,118.40 | 9,281,555.48 | 10,078,673.88 | 11.28% | 45% | Owned funds | |||||
Emergent Maintenance and Rectification of Ageing Group 521-2 (Sixty–Thousand-Tons) Wine Cellar and Adjacent Accommodation | 24,575,200.00 | 13,790,000.00 | 4,500,000.00 | 9,290,000.00 | 56.11% | 100% | Owned funds | |||||
Total | 14,796,660,742.68 | 2,281,203,636.56 | 1,093,066,898.57 | 21,983,750.00 | 3,352,286,785.13 |
Notes: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8,596,655,000, among which the investment inconstruction is RMB6,787,568,000, with RMB1,809,087,000 of initial working capital. The project has two phases. The progress of the first phase is 85.00%, and thesecond phase will begin at the right time according to the production and operations of the Company. The total progress of the two phases of the project is 33.00%.
(3) Project goods and materials
Unit: RMB
Item | Closing balance | Opening balance | ||||
Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
Project goods and materials | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | ||
Total | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 | 2,546,073.18 |
12. Right-of-use assets
Unit: RMB
Item | Buildings and constructions | Specialised equipment | Transport equipment | Other equipment | Land use right | Total |
I Gross amount | ||||||
1. Opening balance | 237,782,957.80 | 366,174.21 | 783,273.42 | 9,604,798.89 | 843,537,258.68 | 1,092,074,463.00 |
2. Increases in the current period | 63,963,075.43 | 623,858.85 | 9,767,580.97 | 74,354,515.25 | ||
(1) Operating leases | 63,963,075.43 | 623,858.85 | 9,767,580.97 | 74,354,515.25 | ||
3. Decreases in the current period | 19,578,102.77 | 19,578,102.77 | ||||
(1) Expiry or termination of leases | 19,578,102.77 | 19,578,102.77 | ||||
4. Closing balance | 282,167,930.46 | 366,174.21 | 1,407,132.27 | 9,604,798.89 | 853,304,839.65 | 1,146,850,875.48 |
II Accumulated depreciation | ||||||
1. Opening balance | 108,633,309.38 | 81,372.04 | 656,756.01 | 3,717,986.64 | 281,179,086.24 | 394,268,510.31 |
2. Increases in the current period | 98,183,655.64 | 122,058.11 | 188,903.31 | 3,717,986.65 | 286,062,876.60 | 388,275,480.31 |
(1) Provisions | 98,183,655.64 | 122,058.11 | 188,903.31 | 3,717,986.65 | 286,062,876.60 | 388,275,480.31 |
3. Decreases in the current period | 16,616,000.98 | 16,616,000.98 | ||||
(1) Expiry or termination of leases | 16,616,000.98 | 16,616,000.98 | ||||
4. Closing balance | 190,200,964.04 | 203,430.15 | 845,659.32 | 7,435,973.29 | 567,241,962.84 | 765,927,989.64 |
III Impairment allowances | ||||||
1. Opening balance | ||||||
2. Increases in the current period | ||||||
(1) Provisions | ||||||
3. Decreases in the current period | ||||||
(1) Disposal | ||||||
4. Closing balance | ||||||
IV Carrying amount | ||||||
1. Closing carrying amount | 91,966,966.42 | 162,744.06 | 561,472.95 | 2,168,825.60 | 286,062,876.81 | 380,922,885.84 |
2. Opening carrying amount | 129,149,648.42 | 284,802.17 | 126,517.41 | 5,886,812.25 | 562,358,172.44 | 697,805,952.69 |
13. Intangible assets
(1) Intangible assets
Unit: RMB
Item | Land use right | Patents | Non-patent technology | Software system | Technology use right | Copyright | Total |
I Gross amount | |||||||
1. Opening balance | 477,637,232.10 | 278,204,210.77 | 10,391,942.73 | 8,066,037.47 | 774,299,423.07 | ||
2. Increases in the current period | 18,257,951.57 | 12,240,173.06 | 30,498,124.63 | ||||
(1) Acquisition | 18,257,951.57 | 12,240,173.06 | 30,498,124.63 | ||||
(2) Internal research and development | |||||||
(3) Increase from business combination | |||||||
3. Decreases in the current period | 7,917,930.00 | 7,917,930.00 | |||||
(1) Disposal | 7,917,930.00 | 7,917,930.00 | |||||
4. Closing balance | 487,977,253.67 | 290,444,383.83 | 10,391,942.73 | 8,066,037.47 | 796,879,617.70 | ||
II Accumulated amortization | |||||||
1. Opening balance | 128,447,525.76 | 76,158,517.67 | 10,337,367.33 | 2,957,547.12 | 217,900,957.88 | ||
2. Increases in the current period | 9,710,717.39 | 52,626,625.04 | 7,358.52 | 1,613,207.52 | 63,957,908.47 | ||
(1) Provisions | 9,710,717.39 | 52,626,625.04 | 7,358.52 | 1,613,207.52 | 63,957,908.47 | ||
3. Decreases in the current period | 3,497,083.96 | 3,497,083.96 | |||||
(1) Disposal | 3,497,083.96 | 3,497,083.96 | |||||
4. Closing balance | 134,661,159.19 | 128,785,142.71 | 10,344,725.85 | 4,570,754.64 | 278,361,782.39 | ||
III Impairment allowances | |||||||
1. Opening balance | |||||||
2. Increases in the current period | |||||||
(1) Provisions | |||||||
3. Decreases in the current period | |||||||
(1) Disposal | |||||||
4. Closing balance | |||||||
IV Carrying amount | |||||||
1. Closing carrying amount | 353,316,094.48 | 161,659,241.12 | 47,216.88 | 3,495,282.83 | 518,517,835.31 | ||
2. Opening carrying amount | 349,189,706.34 | 202,045,693.10 | 54,575.40 | 5,108,490.35 | 556,398,465.19 |
At the end of the current period, the intangible assets created by internal research and development of theCompany accounts for 0.00% of the balance of intangible assets.
(2) Land use right failed to accomplish certification of property
None
14. Goodwill
(1) Gross amounts of goodwill
Unit: RMB
Investee or item generating goodwill | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
Generated due to business combination | Disposal | |||||
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | 37,535.96 | 37,535.96 | ||||
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | 18,005.18 | 18,005.18 | ||||
Sichuan Yibin Plastic Packaging Materials Company Limited | 666,461.77 | 666,461.77 | ||||
Sichuan Yibin Push Group 3D Co., Ltd. | 899,616.62 | 899,616.62 | ||||
Total | 1,621,619.53 | 1,621,619.53 |
15. Long-term prepaid expense
Unit: RMB
Item | Opening balance | Increase in the current period | Amortization in the current period | Other decreases | Closing balance |
Molds | 125,820,463.71 | 67,571,755.55 | 57,777,265.66 | 135,614,953.60 | |
Overhaul expenses of kilns | 24,810,358.81 | 3,507,820.03 | 8,476,099.60 | 19,842,079.24 | |
Others | 4,881,523.30 | 4,003,121.59 | 5,755,350.67 | 3,129,294.22 | |
Total | 155,512,345.82 | 75,082,697.17 | 72,008,715.93 | 158,586,327.06 |
Other notes: Long-term prepaid expense include the molds of Sichuan Yibin Plastic Packaging MaterialsCompany Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan Yibin GlobalGelasi Glass Manufacturing Co., Ltd., which will be amortized in three years and four years, respectively.
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB
Item | Closing balance | Opening balance | ||
Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
Asset impairment allowances | 97,653,716.96 | 24,413,429.24 | 67,911,132.12 | 16,977,783.03 |
Unrealized profit of internal transactions | 1,138,589,500.24 | 284,647,375.06 | 896,183,664.84 | 224,045,916.21 |
Employee benefits payable | 3,102,191,751.36 | 775,547,937.84 | 3,154,737,566.48 | 788,684,391.62 |
Accrued expenses, etc. | 3,833,924,325.92 | 958,481,081.48 | 2,616,999,030.72 | 654,249,757.68 |
Total | 8,172,359,294.48 | 2,043,089,823.62 | 6,735,831,394.16 | 1,683,957,848.54 |
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item | Closing balance | Opening balance |
Deductible temporary differences | 3,304,671.54 | 14,562,119.04 |
Deductible losses | 154,643,413.06 | 185,492,641.43 |
Total | 157,948,084.60 | 200,054,760.47 |
Notes: Due to the uncertainty of whether sufficient taxable income will be obtained in the future, deductibletemporary differences and deductible losses of deferred income tax assets are not recognized.
(3) Deductible losses of deferred income tax assets which have not been recognized will become due in thefollowing years
Unit: RMB
Year | Closing amount | Opening amount | Remarks |
2022 | 32,142,312.41 | ||
2023 | 81,171,553.38 | 81,397,256.28 | |
2024 | 37,175,954.09 | 45,130,913.39 | |
2025 | 26,822,159.35 | 26,822,159.35 | |
2026 | |||
2027 | 9,473,746.24 | ||
Total | 154,643,413.06 | 185,492,641.43 |
17. Other non-current assets
Unit: RMB
Item | Closing balance | Opening balance | ||||
Gross amount | Impairment allowance | Carrying amount | Gross amount | Impairment allowance | Carrying amount | |
Advances of progress payment for information | 246,955,204.05 | 246,955,204.05 | 219,127,135.72 | 219,127,135.72 |
system construction | ||||||
Prepayments for land bids | 725,547,470.92 | 725,547,470.92 | ||||
Total | 972,502,674.97 | 972,502,674.97 | 219,127,135.72 | 219,127,135.72 |
The prepayments for land bids mainly included the prepayments to the Yibin Natural Resources andPlanning Bureau for land transfers, including RMB639,693,000.00 for land in the Wuliangye gateway area,RMB75,200,515.04 for land for the 100,000-ton Ecological Brewery Project Phase II and RMB10,653,955.88for land for the qu-making workshop expansion project.
18. Notes payable
Unit: RMB
Category | Closing balance | Opening balance |
Bank acceptance notes | 886,789,180.37 | 871,061,362.43 |
Letters of credit | 1,181,196.16 | 978,877.44 |
Total | 887,970,376.53 | 872,040,239.87 |
Total amount of notes payable which became matured but unpaid at the end of the current period isRMB0.00.
19. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item | Closing balance | Opening balance |
Accounts payable | 7,246,802,709.58 | 5,403,561,392.95 |
Total | 7,246,802,709.58 | 5,403,561,392.95 |
(2) Significant accounts payable over 1 year
Unit: RMB
Item | Closing balance | Reason for unsettlement or carryforward |
Project payment | 18,627,178.78 | |
Total | 18,627,178.78 |
20. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item | Closing balance | Opening balance |
Advances from customers | 16,160,671.49 | 10,970,385.19 |
Total | 16,160,671.49 | 10,970,385.19 |
(2) Significant advances from customers over 1 year
There were no significant advances from customers over 1 year during the Reporting Period.
(3) Advances from customers presented by aging
Unit: RMB
Aging | Gross amount |
Within 1 year | 6,620,873.55 |
1 to 2 years | 5,390,442.18 |
2 to 3 years | 414,047.47 |
More than 3 years | 3,735,308.29 |
Total | 16,160,671.49 |
(4) Top five entities with respect to advances from customers
Unit: RMB
Entity | Closing balance | As % of the closing balance of total advances from customers |
Beijing Universe Pictures Co., Ltd. | 5,790,000.00 | 35.83% |
Henan Huaibin Wulong Wine Industry Co., Ltd. | 1,144,539.50 | 7.08% |
Gubeichun Group Co., Ltd. | 462,977.00 | 2.86% |
ICBC Yibin Branch | 299,520.00 | 1.85% |
Chengdu Jinqiao Wine Co., Ltd. | 260,000.00 | 1.61% |
Total | 7,957,036.50 | 49.24% |
21. Contract liabilities
Unit: RMB
Item | Closing balance | Opening balance |
Advances from customers | 12,379,125,542.70 | 13,058,652,246.11 |
Total | 12,379,125,542.70 | 13,058,652,246.11 |
22. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
I Short-term remuneration | 3,335,922,928.44 | 6,602,622,547.27 | 6,564,174,584.67 | 3,374,370,891.04 |
II Post-employment benefits - defined contribution plans | 14,212.86 | 1,265,585,788.93 | 1,265,444,062.95 | 155,938.84 |
III Dismissal benefits | 2,475,935.67 | 1,475,935.67 | 1,000,000.00 | |
Total | 3,335,937,141.30 | 7,870,684,271.87 | 7,831,094,583.29 | 3,375,526,829.88 |
(2) Presentation of short-term remuneration
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
1. Salaries, bonuses, allowances and subsidies | 3,277,576,290.68 | 5,434,201,775.35 | 5,451,376,881.48 | 3,260,401,184.55 |
2. Employee benefits | 118,793,387.51 | 118,793,387.51 | ||
3. Social insurance charges | 154,678.65 | 396,323,924.86 | 396,312,764.51 | 165,839.00 |
Including: Medical insurance premium | 154,486.34 | 336,064,014.92 | 336,064,014.92 | 154,486.34 |
Industrial injury insurance premium | 107.45 | 59,801,642.60 | 59,790,482.25 | 11,267.80 |
Birth insurance premium | 84.86 | 458,267.34 | 458,267.34 | 84.86 |
4. Housing provident fund | 32,467,779.00 | 539,210,185.90 | 477,678,270.90 | 93,999,694.00 |
5. Labor union expenditure and personnel educational fund | 25,724,180.11 | 114,093,273.65 | 120,013,280.27 | 19,804,173.49 |
Total | 3,335,922,928.44 | 6,602,622,547.27 | 6,564,174,584.67 | 3,374,370,891.04 |
(3) Presentation of defined contribution plans
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
1. Basic pension insurance | 14,212.86 | 1,011,001,271.82 | 1,010,864,648.30 | 150,836.38 |
2. Unemployment insurance premium | 26,878,192.74 | 26,873,090.28 | 5,102.46 | |
3. Corporate pension contribution | 227,706,324.37 | 227,706,324.37 | ||
Total | 14,212.86 | 1,265,585,788.93 | 1,265,444,062.95 | 155,938.84 |
23. Taxes and levies payable
Unit: RMB
Item | Closing balance | Opening balance |
VAT | 1,081,836,866.14 | 728,372,175.12 |
Consumption tax | 921,407,756.36 | 1,334,494,888.87 |
Corporate income tax | 3,017,389,769.33 | 2,815,738,734.80 |
Individual income tax | 26,308,217.47 | 82,919,949.14 |
Urban maintenance and construction tax | 143,754,429.94 | 187,159,402.54 |
Property tax | 441,068.14 | 689,739.04 |
Stamp duty | 6,357,506.98 | 1,929,855.79 |
Land use tax | 669,153.14 | 1,064,621.99 |
Education surcharge | 62,118,360.81 | 23,896,418.74 |
Local education surcharge | 41,417,432.28 | 15,899,070.65 |
Environmental protection tax | 17,625.34 | 18,848.22 |
Total | 5,301,718,185.93 | 5,192,183,704.90 |
Other information: The taxes and levies of the Company depend on the amount verified and imposed by thetax authorities.
24. Other payables
Unit: RMB
Item | Closing balance | Opening balance |
Dividends payable | 13,191,392.99 | 37,436,404.82 |
Other payables | 4,618,243,522.44 | 3,656,421,703.39 |
Total | 4,631,434,915.43 | 3,693,858,108.21 |
(1) Dividends payable
Unit: RMB
Item | Closing balance | Opening balance |
Dividends payable by subsidiaries to non-controlling shareholders | 13,191,392.99 | 37,436,404.82 |
Total | 13,191,392.99 | 37,436,404.82 |
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB
Item | Closing balance | Opening balance |
Image publicity expense and sales promotional expense | 3,107,040,267.25 | 2,275,896,048.89 |
Security deposits | 1,059,053,791.82 | 952,693,928.59 |
Frozen funds | 254,603,170.35 | 249,103,170.35 |
Collecting payment on behalf of others | 79,272,558.15 | 57,463,693.60 |
Claims from safeguarding rights | 31,207,782.63 | 27,200,519.63 |
Others | 87,065,952.24 | 94,064,342.33 |
Total | 4,618,243,522.44 | 3,656,421,703.39 |
2) Significant other payables over one year
Unit: RMB
Item | Closing balance | Reason for unsettlement or carryforward |
Security deposits | 140,068,578.96 | |
Frozen funds | 248,322,766.21 | |
Total | 388,391,345.17 |
25. Current portion of non-current liabilities
Unit: RMB
Item | Closing balance | Opening balance |
Current portion of lease liabilities | 375,682,599.77 | 360,027,399.06 |
Total | 375,682,599.77 | 360,027,399.06 |
26. Other current liabilities
Unit: RMB
Item | Closing balance | Opening balance |
Output tax to be transferred | 1,544,723,419.34 | 1,688,367,639.42 |
Total | 1,544,723,419.34 | 1,688,367,639.42 |
27. Lease liabilities
Unit: RMB
Item | Closing balance | Opening balance |
Lease liabilities | 16,976,148.73 | 355,338,950.93 |
Total | 16,976,148.73 | 355,338,950.93 |
28. Deferred income
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause |
Government subsidies | 257,991,368.32 | 23,347,702.40 | 26,922,205.97 | 254,416,864.75 | |
Total | 257,991,368.32 | 23,347,702.40 | 26,922,205.97 | 254,416,864.75 | -- |
Items involving government subsidies:
Unit: RMB
Liability item | Opening balance | New government subsidies in the current period | Amount recognized in non-operating income in the current period | Amount recognized in other income in the current period | Amount charged to costs and expenses in the current period | Other changes | Closing balance | Related to assets/income |
90-Thousand-Ton Pottery Jar Baijiu Aging Cellar Technical Innovation Project (Phase I) | 167,816,667.10 | 6,712,666.56 | 161,104,000.54 | Related to assets | ||||
Brewery Wastewater Comprehensive Treatment Project | 13,950,000.00 | 750,000.00 | 13,200,000.00 | Related to assets | ||||
Wastewater Comprehensive Treatment and Transformation Project | 13,133,333.23 | 333,333.36 | 12,799,999.87 | Related to assets | ||||
Wuliangye Industrial Park Construction Project | 10,000,000.00 | 10,000,000.00 | Related to assets | |||||
300-Thousand-Ton Pottery Jar Baijiu Aging Cellar (Phase I) | 10,000,000.00 | 10,000,000.00 | Related to assets | |||||
Baijiu Blending and Storage Cellar Renovation Project | 10,000,000.00 | 10,000,000.00 | Related to assets | |||||
Songgong River (Wuliangye Section) Comprehensive Treatment Project | 9,835,833.20 | 357,666.72 | 9,478,166.48 | Related to assets | ||||
Technical Upgrading Project of the Quality Control, Quality Inspection and Testing Center | 8,583,333.39 | 343,333.32 | 8,240,000.07 | Related to assets | ||||
Wastewater Treatment System Upgrading and Renovation Project | 7,999,999.84 | 320,000.04 | 7,679,999.80 | Related to assets | ||||
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase I) | 1,393,035.30 | 219,999.96 | 1,173,035.34 | Related to assets | ||||
Technical Upgrading Project of the 60-Thousand-Ton Rich-Flavor Baijiu Pottery Jar Aging Cellar | 1,179,999.68 | 590,000.04 | 589,999.64 | Related to assets | ||||
Brewing Special Grain Process Bin & Milling Automation Renovation Project | 2,740,000.00 | 2,740,000.00 | Related to assets | |||||
Informatization and big data application | 479,166.58 | 125,000.04 | 354,166.54 | Related to assets | ||||
Shiergoubao Production Line Technical Upgrading Project | 120,000.00 | 120,000.00 | Related to assets |
Award from the 4A Scenic Spot of Tourist Administration of Cuiping District | 2,000,000.00 | 103,540.00 | 1,896,460.00 | Related to income | ||||
Industrial development funds | 1,000,000.00 | 558,744.47 | 441,255.53 | Related to income | ||||
Reward payment for demolition of Jiujiang Lingang International Industrial Community, Nanhai District, Foshan City | 20,307,702.40 | 6,215,221.46 | 10,172,700.00 | 3,919,780.94 | Related to assets | |||
Subsidy for national green plant of 2018 | 500,000.00 | 500,000.00 | Related to income | |||||
Yibin Sanjiang New Area 2021 Outstanding Economic Contribution Enterprise Award | 300,000.00 | 300,000.00 | Related to income | |||||
Total | 257,991,368.32 | 23,347,702.40 | 16,749,505.97 | 10,172,700.00 | 254,416,864.75 |
29. Share capital
Unit: RMB
Opening balance | Increase/decrease in the current period (+/-) | Closing balance | |||||
New issue | Bonus issue from profit | Bonus issue from capital reserves | Others | Subtotal | |||
Total shares | 3,881,608,005.00 | 3,881,608,005.00 |
30. Capital reserves
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Capital premium (share premium) | 2,682,523,702.98 | 2,682,523,702.98 | ||
Other capital reserves | 123,383.17 | 123,383.17 | ||
Total | 2,682,647,086.15 | 2,682,647,086.15 |
31. Surplus reserves
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Statutory surplus reserves | 23,866,103,395.72 | 4,566,095,129.26 | 28,432,198,524.98 | |
Total | 23,866,103,395.72 | 4,566,095,129.26 | 28,432,198,524.98 |
32. Retained earnings
Unit: RMB
Item | 2022 | 2021 |
Retained earnings at the end of the prior period before adjustment | 68,638,139,859.37 | 59,443,191,559.08 |
Retained earnings at the beginning of the period after adjustment | 68,638,139,859.37 | 59,443,191,559.08 |
Plus: Net profit attributable to owners of the Company as the parent in the current period | 26,690,661,397.42 | 23,377,074,353.40 |
Less: Appropriation to statutory surplus reserves | 4,566,095,129.26 | 4,167,577,400.21 |
Dividends payable to ordinary shareholders | 11,734,100,955.49 | 10,014,548,652.90 |
Retained earnings at the end of the period | 79,028,605,172.04 | 68,638,139,859.37 |
Adjustments to the retained earnings at the beginning of the period:
1) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to the retroactiveadjustment according to the Accounting Standards for Business Enterprises and relevant new provisions.
2) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes inaccounting policies.
3) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to correction of majoraccounting errors.
4) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes in thecombination scope arising from the same control.
5) The retained earnings at the beginning of the period are adjusted by RMB0.00 in total due to otheradjustments.
33. Operating revenue and cost of sales
Unit: RMB
Item | 2022 | 2021 | ||
Revenue | Costs | Revenue | Costs | |
Principal operations | 73,363,741,120.87 | 17,732,568,111.41 | 65,753,001,416.07 | 15,948,182,928.09 |
Other operations | 604,899,583.67 | 445,857,548.23 | 456,052,196.04 | 370,595,660.73 |
Total | 73,968,640,704.54 | 18,178,425,659.64 | 66,209,053,612.11 | 16,318,778,588.82 |
Whether the lower of net profit before or after exceptional gains and losses is negative
□ Yes ? No
Information on revenue:
Unit: RMB
Contract category | East China | South China | West China | North China | Central China | Total |
By product category | ||||||
Wuliangye-branded Baijiu products | 17,496,875,030.84 | 6,786,734,526.67 | 13,176,884,851.52 | 8,103,453,869.26 | 9,771,229,799.12 | 55,335,178,077.41 |
Other liquor products | 1,488,744,841.28 | 694,906,203.44 | 8,361,575,823.63 | 311,214,295.12 | 1,371,027,390.36 | 12,227,468,553.83 |
By sales channel | ||||||
Online | 1,179,671,394.19 | 165,150,138.76 | 465,552,199.55 | 2,329,179,020.66 | 109,284,348.17 | 4,248,837,101.33 |
Offline | 17,805,948,477.93 | 7,316,490,591.35 | 21,072,908,475.60 | 6,085,489,143.72 | 11,032,972,841.31 | 63,313,809,529.91 |
By sales model | ||||||
Distributor model | 13,203,392,902.94 | 4,353,631,980.37 | 12,351,614,157.07 | 3,843,483,477.70 | 6,740,264,397.61 | 40,492,386,915.69 |
Direct-to-consumer model | 5,782,226,969.18 | 3,128,008,749.74 | 9,186,846,518.08 | 4,571,184,686.68 | 4,401,992,791.87 | 27,070,259,715.55 |
Total | 18,985,619,872.12 | 7,481,640,730.11 | 21,538,460,675.15 | 8,414,668,164.38 | 11,142,257,189.48 | 67,562,646,631.24 |
Information related to performance obligations:
Revenue is recognized at the point when the Company completes its contractual performance obligations when the customer obtains control of the goods towhich it belongs in the contractual agreement.Information related to the transaction price apportioned to the remaining performance obligation:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not completed at the end of the ReportingPeriod was RMB12,379,125,542.70.
34. Tax and surcharges
Unit: RMB
Item | 2022 | 2021 |
Consumption tax | 8,653,332,472.22 | 7,776,945,076.19 |
Urban maintenance and construction tax | 1,132,484,875.40 | 1,010,969,161.44 |
Education surcharge | 486,699,510.87 | 434,483,541.69 |
Tax on natural resources | 92,594.00 | 45,946.20 |
Property tax | 47,802,066.72 | 108,880,137.88 |
Land use tax | 48,955,268.10 | 49,348,856.38 |
Vehicle and vessel usage tax | 105,993.23 | 130,667.12 |
Stamp duty | 54,296,957.03 | 118,209,627.99 |
Local education surcharge | 324,466,433.74 | 289,651,168.33 |
Environmental protection tax | 566,205.73 | 1,033,833.76 |
Total | 10,748,802,377.04 | 9,789,698,016.98 |
35. Selling expenses
Unit: RMB
Item | 2022 | 2021 |
Image publicity expense | 1,240,440,205.34 | 1,218,266,158.62 |
Sales promotional expense | 3,889,326,216.67 | 3,786,854,045.27 |
Storage and logistics expenses | 476,754,635.74 | 411,654,403.24 |
Expenses of labor | 718,179,395.38 | 611,192,688.42 |
Other expenses | 519,536,560.04 | 475,538,836.35 |
Total | 6,844,237,013.17 | 6,503,506,131.90 |
36. Administrative expenses
Unit: RMB
Item | 2022 | 2021 |
Comprehensive expenses of the Company (including travel, office, expenses of the Board of Directors, employee remuneration, labor insurance, labor protection appliances, etc.) | 1,302,358,844.82 | 1,153,058,803.19 |
Rents | 12,138,843.91 | 31,590,929.73 |
Trademark and logo royalties | 863,873,404.43 | 742,030,648.63 |
Comprehensive service fee | 78,322,182.60 | 80,272,320.88 |
Others | 811,425,992.69 | 893,016,164.94 |
Total | 3,068,119,268.45 | 2,899,968,867.37 |
37. Research and development expense
Unit: RMB
Item | 2022 | 2021 |
Comprehensive expenses (including travel, office, payroll, labor insurance, labor protection appliances, etc.) | 159,734,978.88 | 112,283,087.89 |
Material expenses | 24,305,191.52 | 17,595,341.62 |
Product design fees | 14,835,860.22 | 14,671,117.06 |
Depreciation and amortization expenses | 15,940,284.31 | 11,225,044.37 |
Comprehensive expenses (including travel, office, payroll, labor insurance, labor protection appliances, etc.) | 20,967,330.86 | 21,637,136.71 |
Total | 235,783,645.79 | 177,411,727.65 |
38. Finance costs
Unit: RMB
Item | 2022 | 2021 |
Interest costs | 48,003,667.91 | 69,130,792.55 |
Less: Interest income | 2,075,700,630.12 | 1,801,002,307.73 |
Exchange loss | 394,735.15 | 585,270.50 |
Less: Exchange gains | 509,873.32 | 256,035.88 |
Service charge of financial institutions | 1,903,782.68 | 1,984,791.95 |
Others | -442,730.22 | -2,144,596.61 |
Total | -2,026,351,047.92 | -1,731,702,085.22 |
39. Other income
Unit: RMB
Sources of other income | 2022 | 2021 |
Government subsidies | 100,421,839.81 | 159,198,913.34 |
Tax rebates | 72,322,800.00 | 24,522,993.00 |
Tax preferences | 13,781,264.60 | 32,006,329.01 |
Total | 186,525,904.41 | 215,728,235.35 |
Notes: 1. Refer to the Note "VII Notes to the Consolidated Financial Statements, 51. Governmentsubsidies" for details of government subsidies.
2. The tax rebates are the VAT rebates received by the Company, refer to the Note "VI Taxes, 2. Taxpreferences" for details.
40. Return on investment
Unit: RMB
Item | 2022 | 2021 |
Return on long-term equity investments measured using the equity method | 92,571,951.15 | 97,346,566.33 |
Total | 92,571,951.15 | 97,346,566.33 |
41. Credit impairment loss
Unit: RMB
Item | 2022 | 2021 |
Loss on uncollectible other receivables | -1,722,230.36 | -1,546,459.61 |
Loss on uncollectible accounts receivable | 284,297.70 | -1,055,065.13 |
Total | -1,437,932.66 | -2,601,524.74 |
42. Asset impairment loss
Unit: RMB
Item | 2022 | 2021 |
Inventory valuation loss and impairment loss on contract performance costs | -5,552,799.12 | -7,531,487.70 |
Impairment loss on fixed assets | -20,654,660.75 | |
Total | -26,207,459.87 | -7,531,487.70 |
43. Asset disposal income
Unit: RMB
Source of asset disposal income | 2022 | 2021 |
Disposal of non-current assets | 3,347,202.23 | -1,905,183.84 |
Total | 3,347,202.23 | -1,905,183.84 |
44. Non-operating income
Unit: RMB
Item | 2022 | 2021 | Amounts included in current exceptional profit or loss |
Penalty income | 7,902,851.31 | 11,413,330.49 | 7,902,851.31 |
Gains from scrap of non-current assets | 4,916,136.57 | 1,713,863.61 | 4,916,136.57 |
Others | 26,066,282.98 | 38,972,624.12 | 26,066,282.98 |
Total | 38,885,270.86 | 52,099,818.22 | 38,885,270.86 |
45. Non-operating expense
Unit: RMB
Item | 2022 | 2021 | Amounts included in current exceptional profit or loss |
Donations | 57,541,747.10 | 99,159,845.28 | 57,541,747.10 |
Penalty expenditure | 578,945.52 | 588,035.22 | 578,945.52 |
Sponsorship expenditure | 1,000,000.00 | 1,000,000.00 | |
Loss on scrap of non-current assets | 5,981,101.42 | 23,431,675.28 | 5,981,101.42 |
Exceptional loss | 198,610.78 | 386,224.38 | 198,610.78 |
Others | 44,487,603.43 | 30,558,562.37 | 44,487,603.43 |
Total | 109,788,008.25 | 154,124,342.53 | 109,788,008.25 |
Other information: The donations mainly consisted of RMB57.3821 million to Sichuan Wuliangye CharityFund.
46. Income tax expense
(1) List of income tax expense
Unit: RMB
Item | 2022 | 2021 |
Current income tax expense | 9,492,020,759.10 | 8,140,840,384.03 |
Deferred income tax expense | -359,131,975.08 | -197,886,268.59 |
Total | 9,132,888,784.02 | 7,942,954,115.44 |
(2) Reconciliation between accounting profit and income tax expense
Unit: RMB
Item | 2022 |
Gross profit | 37,103,520,716.24 |
Income tax expense based on the statutory/applicable tax rates | 9,275,880,179.06 |
Effects of different tax rates of subsidiaries | -98,809,539.85 |
Effects of adjustments to income tax of the prior period | -19,147,403.40 |
Effects of non-taxable revenue | -23,142,987.79 |
Effects of non-deductible costs, expenses and losses | 36,940,122.68 |
Effects of the utilization of deductible losses on which deferred income tax assets were unrecognized in the prior period | -2,045,165.55 |
Effects of deductible temporary differences or losses on which deferred income tax assets are unrecognized in the current period | -445,925.31 |
Effects of the utilization of temporary differences on which deferred income tax assets were unrecognized in the prior period | |
Effects of the over-deduction in the calculation of the taxable amount in relation to wages for the disabled employees | -16,416,370.36 |
Effects of the 10% preferential income tax rate for stream revenue | |
Effects of the over-deduction in the calculation of the taxable amount in relation to R&D expense | -20,365,371.46 |
Effects of the one-time deduction of fixed assets | 441,246.00 |
Income tax expense | 9,132,888,784.02 |
47. Cash flow statement line items
(1) Cash generated from other operating activities
Unit: RMB
Item | 2022 | 2021 |
Interest income | 1,547,650,473.84 | 1,661,218,236.26 |
Security deposits and government subsidies received | 458,546,814.57 | 384,667,127.10 |
Total | 2,006,197,288.41 | 2,045,885,363.36 |
(2) Cash used in other operating activities
Unit: RMB
Item | 2022 | 2021 |
Expenses relating to selling | 2,284,853,859.19 | 2,690,167,279.28 |
Comprehensive service fee | 78,322,182.60 | 80,272,320.88 |
Trademark and logo royalties | 863,873,404.43 | 742,030,648.63 |
Security deposits paid, payments for current transactions, and other out-of-pocket expenses | 1,141,487,988.23 | 1,273,082,151.54 |
Total | 4,368,537,434.45 | 4,785,552,400.33 |
(3) Cash used in other financing activities
Unit: RMB
Item | 2022 | 2021 |
Payment for the lease liabilities | 402,860,485.37 | 395,161,935.55 |
Payments to non-controlling shareholders of subsidiaries for distribution of residual assets in the liquidation and de-registration of subsidiaries | 21,148,883.78 | |
Total | 424,009,369.15 | 395,161,935.55 |
48. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information | 2022 | 2021 |
1. Reconciliation of net profit to net cash generated from/used in operating activities | ||
Net profit | 27,970,631,932.22 | 24,507,450,330.26 |
Add: Asset impairment allowances | 20,844,584.71 | 5,796,149.63 |
Depreciation of fixed assets, depletion of oil and gas assets, and depreciation of productive living assets | 440,948,448.61 | 427,065,481.45 |
Depreciation of right-of-use assets | 388,275,480.31 | 394,268,510.31 |
Amortization of intangible assets | 63,957,908.47 | 37,740,806.36 |
Amortization of long-term prepaid expense | 72,008,715.93 | 57,930,691.97 |
Loss on the disposal of fixed assets, intangible assets and other long-term assets (―-‖ for gain) | -3,347,202.23 | 1,905,183.84 |
Loss on the retirement of fixed assets (―-‖ for gain) | 1,064,964.85 | 21,717,811.67 |
Loss on changes in fair value (―-‖ for gain) | ||
Finance costs (―-‖ for income) | 47,867,401.72 | 69,600,321.23 |
Loss on investment (―-‖ for income) | -92,571,951.15 | -97,346,566.33 |
Decrease in deferred income tax assets (―-‖ for increase) | -359,131,975.08 | -197,886,268.59 |
Increase in deferred income tax liabilities (―-‖ for decrease) | ||
Decrease in inventories (―-‖ for increase) | -1,964,349,766.62 | -790,605,226.52 |
Decrease in operating receivables (―-‖ for increase) | -3,969,465,671.49 | -5,010,652,760.11 |
Increase in operating payables (―-‖ for decrease) | 1,814,403,391.23 | 7,347,957,407.88 |
Others | ||
Net cash generated from/used in operating activities | 24,431,136,261.48 | 26,774,941,873.05 |
2. Significant investing and financing activities that involve no cash proceeds or payments | ||
Conversion of debt to capital | ||
Current portion of convertible corporate bonds | ||
Fixed assets under finance leases | ||
3. Net changes in cash and cash equivalents: | ||
Closing balance of cash | 90,584,643,897.66 | 80,975,257,378.72 |
Less: Opening balance of cash | 80,975,257,378.72 | 66,967,091,800.45 |
Add: Closing balance of cash equivalents | ||
Less: Opening balance of cash equivalents | ||
Net increase in cash and cash equivalents | 9,609,386,518.94 | 14,008,165,578.27 |
(2) Composition of cash and cash equivalents
Unit: RMB
Item | Closing balance | Opening balance |
I Cash | 90,584,643,897.66 | 80,975,257,378.72 |
Of which: Cash on hand | 19,772.01 | 21,897.04 |
Bank deposits that can be readily drawn on demand | 90,562,914,574.52 | 80,974,942,794.33 |
Other monetary assets that can be readily drawn on demand | 21,709,551.13 | 292,687.35 |
III Cash and cash equivalents, end of the period | 90,584,643,897.66 | 80,975,257,378.72 |
49. Assets with restricted ownership or rights-of-use
Unit: RMB
Item | Closing carrying amount | Reason for restriction |
Monetary assets | 192,532,713.23 | The balance of RMB3,222.19 in the securities trading account with the Yibin Business Department of Essence Securities, security deposits of RMB192,004,714.62 for bank acceptance notes, and other security deposits of RMB524,776.42 |
Receivables financing | 117,021,640.00 | In pledge for bank acceptance notes |
Total | 309,554,353.23 |
50. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Item | Closing balance in foreign currency | Exchange rate | Closing balance in RMB |
Monetary assets | |||
Of which: USD | 303,443.37 | 6.9646 | 2,113,361.69 |
EUR | |||
HKD | |||
Accounts receivable | |||
Of which: USD | |||
EUR | |||
HKD | |||
Long-term borrowings | |||
Of which: USD | |||
EUR | |||
HKD | |||
(2) Overseas business entities (for substantial overseas business entities, the following information shall bedisclosed: principal place of business, functional currency and basis for the choice, change of functionalcurrency and reasons)
□ Applicable ? Not applicable
51. Government subsidies
(1) Basic information on government subsidies
Unit: RMB
Type | Amount | Presented item | Amount included in current profit or loss |
90-Thousand-Ton Pottery Jar Baijiu Aging Cellar Technical Innovation Project (Phase I) | 201,380,000.00 | Deferred income | 6,712,666.56 |
Reward payment for demolition of Jiujiang Lingang International Industrial Community, Nanhai District, Foshan City | 20,307,702.40 | Deferred income | 6,215,221.46 |
Brewery Wastewater Comprehensive Treatment Project | 22,500,000.00 | Deferred income | 750,000.00 |
Technical Upgrading Project of the 60-Thousand-Ton Rich-Flavor Baijiu Pottery Jar Aging Cellar | 5,900,000.00 | Deferred income | 590,000.04 |
Industrial development funds | 1,000,000.00 | Deferred income | 558,744.47 |
Songgong River (Wuliangye Section) Comprehensive Treatment Project | 10,730,000.00 | Deferred income | 357,666.72 |
Technical Upgrading Project of the Quality Control, Quality Inspection and Testing Center | 10,300,000.00 | Deferred income | 343,333.32 |
Wastewater Comprehensive Treatment and Transformation Project | 10,000,000.00 | Deferred income | 333,333.36 |
Wastewater Treatment System Upgrading and Renovation Project | 9,600,000.00 | Deferred income | 320,000.04 |
Coal-to-Gas Energy Conservation and Emission Reduction Project (Phase I) | 6,600,000.00 | Deferred income | 219,999.96 |
Informatization and big data application | 1,000,000.00 | Deferred income | 125,000.04 |
Shiergoubao Production Line Technical Upgrading Project | 1,200,000.00 | Deferred income | 120,000.00 |
Cuiping District Tourism Bureau 4A Scenic Spot Award | 2,000,000.00 | Deferred income | 103,540.00 |
300-Thousand-Ton Pottery Jar Baijiu Aging Cellar (Phase I) | 10,000,000.00 | Deferred income | |
Baijiu Blending and Storage Cellar Renovation Project | 10,000,000.00 | Deferred income | |
Wuliangye Industrial Park Construction Project | 10,000,000.00 | Deferred income | |
Brewing Special Grain Process Bin & Milling Automation Renovation Project | 2,740,000.00 | Deferred income | |
Subsidy for national green plant of 2018 | 500,000.00 | Deferred income | |
Yibin Sanjiang New Area 2021 Outstanding Economic Contribution Enterprise Award | 300,000.00 | Deferred income | |
Award from the Modern Service Industry Development Bureau of the Economic and Technological Development Zone in Lingang | 45,771,539.00 | Other income | 45,771,539.00 |
Job Stabilisation Subsidy | 12,222,276.84 | Other income | 12,222,276.84 |
Industrial support funds for projects in Lingang Economic and Technological Development Zone of Yibin | 5,045,222.00 | Other income | 5,045,222.00 |
Talent Introduction Subsidy | 4,329,400.00 | Other income | 4,329,400.00 |
Sichuan National Enterprise Technology Centre R&D Investment Incentive | 3,000,000.00 | Other income | 3,000,000.00 |
Subsidy funds of the ten measures for a strong modern industrial city | 2,720,000.00 | Other income | 2,720,000.00 |
Support funds for settled enterprises | 2,128,500.00 | Other income | 2,128,500.00 |
Team Award by the Economic Cooperation and Foreign Affairs Bureau in Nanxi District, Yibin | 1,307,400.00 | Other income | 1,307,400.00 |
Support funds from the Linzhang County Finance Bureau | 1,265,496.00 | Other income | 1,265,496.00 |
Henan Liquor Development Funds | 1,080,000.00 | Other income | 1,080,000.00 |
The first batch of Yibin manufacturing segment champion incubatees | 1,000,000.00 | Other income | 1,000,000.00 |
Utilities subsidy for industrial enterprise development | 939,900.00 | Other income | 939,900.00 |
Funds for promoting innovation and development of industrial enterprises in Sanjiang New Area, Yibin | 650,000.00 | Other income | 650,000.00 |
Sales incentive from the Yibin Sanjiang New Area Industry and Services Bureau | 583,120.00 | Other income | 583,120.00 |
Special enterprise technology transformation funds for high quality development | 538,500.00 | Other income | 538,500.00 |
Provincial special funds for science and technology project | 412,000.00 | Other income | 412,000.00 |
Special subsidy for the overall image promotion of liquor produced in Henan | 200,000.00 | Other income | 200,000.00 |
Fiscal incentive funds for full capacity production of above-designated-size enterprises in the first quarter of 2022 | 100,000.00 | Other income | 100,000.00 |
Subsidy from the International Cooperation and Investment Service Bureau of the Chengdu Hi-Tech Industrial Development Zone for supporting small trading enterprises to scale up | 100,000.00 | Other income | 100,000.00 |
Provincial special funds for intellectual property | 100,000.00 | Other income | 100,000.00 |
Special funds for high-quality development | 50,000.00 | Other income | 50,000.00 |
Municipal Business Development Project Subsidy from the Yibin Sanjiang New Area Industry and Service Bureau | 50,000.00 | Other income | 50,000.00 |
Yibin Nanxi District Finance Bureau 2021 Economic Work Recognition Award | 50,000.00 | Other income | 50,000.00 |
Special fund for talent development | 20,000.00 | Other income | 20,000.00 |
Other miscellaneous government subsidies | 8,980.00 | Other income | 8,980.00 |
Total | 419,730,036.24 | 100,421,839.81 |
(2) Return of government subsidies
□ Applicable ? Not applicable
VIII Changes to the Scope of the Consolidated Financial Statements
1. Business combinations involving entities not under common control
There were no business combinations involving entities not under common control in the Reporting Period.
2. Business combinations involving entities under common control
There were no business combinations involving entities under common control in the Reporting Period.
3. Counter purchase
There was no subsidiary acquired by counter purchase during the Reporting Period.
4. Disposal of subsidiary
There was no disposal of subsidiaries during the Reporting Period.
5. Changes in the consolidation scope for other reasons
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels(2020~2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,the Company has strengthened the disposal of less competitive business entities that are not part of its principaloperations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and Yibin
Wuliangye Xinshengdai Liquor Co., Ltd., were de-registered.IX Interests in Other Entities
1. Interests in subsidiaries
(1) Compositions of the Group
Subsidiary | Principal place of business | Place of registration | Nature of business | The Company’s interest | How the subsidiary was obtained | |
Direct | Indirect | |||||
Sichuan Yibin Wuliangye Distillery Co., Ltd. | Yibin | Yibin | Manufacturing | 99.00% | 0.99% | Incorporated |
Yibin Wuliangye Liquor Sales Co., Ltd. | Yibin | Yibin | Business | 95.00% | Incorporated | |
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. | Yibin | Yibin | Business | 95.00% | Incorporated | |
Yibin Wuliangchun Brand Marketing Co., Ltd | Yibin | Yibin | Business | 95.00% | Incorporated | |
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. | Yibin | Yibin | Business | 95.00% | Incorporated | |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | Yibin | Yibin | Business | 99.00% | 0.95% | Incorporated |
Yibin Jiangjiu Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | Yibin | Yibin | Manufacturing | 51.00% | Incorporated | |
Sichuan Jinwuxin Technology Co., Ltd. | Yibin | Yibin | Business | 51.00% | Business combination involving entities not under common control | |
Sichuan Jiebeike Environmental Technology Co., Ltd. | Yibin | Yibin | Engineering | 26.01% | Incorporated | |
Yibin Changjiangyuan Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
Yibin Changjiangyuan Trade Co., Ltd. | Yibin | Yibin | Business | 100.00% | Incorporated | |
Yibin Changjiangyuan Brewery Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | Incorporated | |
Yibin Wuliangye Organic Agriculture Development Co., Ltd. | Yibin | Yibin | Agriculture | 100.00% | Incorporated | |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Yibin | Yibin | Manufacturing | 90.00% | Incorporated | |
Yibin Xianlin Liquor Marketing Co., Ltd. | Yibin | Yibin | Business | 90.00% | Incorporated | |
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | Yibin | Yibin | Manufacturing | 97.00% | 1.53% | Incorporated |
Yibin Xinxing Packaging Co., Ltd. | Yibin | Yibin | Business | 98.53% | Incorporated | |
Sichuan Yibin Plastic Packaging Materials Company Limited | Yibin | Yibin | Manufacturing | 100.00% | Business combination involving |
entities not under common control | ||||||
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | ||
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | ||
Sichuan Yibin Push Group 3D Co., Ltd. | Yibin | Yibin | Manufacturing | 100.00% | ||
Guangdong Plastic Packaging Materials Company Limited | Foshan | Foshan | Manufacturing | 100.00% | Incorporated | |
Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd. | Yibin | Yibin | Investment | 95.00% | Incorporated | |
Wuliangye Dashijie (Beijing) Trade Co., Ltd. | Beijing | Beijing | Business | 95.00% | Incorporated | |
Handan Yongbufenli Liquor Co., Ltd. | Handan | Handan | Manufacturing | 51.00% | Incorporated | |
Linzhang Desheng Liquor Trade Co., Ltd. | Handan | Handan | Business | 51.00% | Incorporated | |
Handan Yongbufenli Sales Co., Ltd. | Handan | Handan | Business | 51.00% | Incorporated | |
Huaibin Wubin Consultation Service Co., Ltd. | Huaibin | Huaibin | Consultation | 100.00% | Business combination involving entities not under common control | |
Wuguchun Jiu Ye Co., Henan. China | Huaibin | Huaibin | Manufacturing | 11.03% | 40.00% | |
Huaibin Tenglong Trade Co., Ltd. | Huaibin | Huaibin | Business | 51.03% | Incorporated | |
Wuguchun Jiu Ye Sales Co., Henan. China | Huaibin | Huaibin | Business | 51.03% | Incorporated | |
Sichuan Wuliangye Culture Tourism Development Co., Ltd. | Yibin | Yibin | Tourism | 80.00% | Incorporated | |
Sichuan Wuliangye Tourist Agency Co., Ltd. | Yibin | Yibin | Tourism | 80.00% | Incorporated | |
Yibin Wuliangye Creart Co., Ltd. | Yibin | Yibin | Business | 45.00% | Incorporated | |
Sichuan Wuliangye NongXiang Baijiu Co., Ltd. | Yibin | Yibin | Business | 95.00% | Incorporated | |
Sichuan Wuliangye New Retail Management Co., Ltd. | Chengdu | Chengdu | Business | 90.00% | Incorporated |
Note on the difference between shareholding proportion and proportion of voting rights in subsidiary:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing SparkleInvestment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "CreartCompany"), of which the registered capital is RMB100 million. The Company contributes RMB45 million,taking up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co.,Ltd. and the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd.through mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company formanagement of the 6% equity held by it in Creart Company from the effective date of the agreement till theduration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of CreartCompany. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, andtherefore Creart Company is included in the consolidated statements.As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang GrowthCapital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting ofCreart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to BeijingSparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company stillholds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in theconsolidated statements.The basis of controlling the invested company even if holding half or less than half voting rights and notcontrolling the invested company even if holding more than half voting rights:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing SparkleInvestment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "CreartCompany"), of which the registered capital is RMB100 million. The Company contributes RMB45 million,taking up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co.,Ltd. and the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd.through mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company formanagement of the 6% equity held by it in Creart Company from the effective date of the agreement till theduration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue ShanInvestment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of CreartCompany. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, andtherefore Creart Company is included in the consolidated statements.As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang GrowthCapital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting ofCreart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to BeijingSparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company stillholds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in theconsolidated statements.
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Subsidiary | Non-controlling interests | Net profit or loss attributable to non-controlling interests in the current period | Declared dividends for non-controlling interests in the current period | Closing balance of non-controlling interests |
Yibin Wuliangye Liquor Sales Co., Ltd. | 5.00% | 992,870,803.68 | 760,305,969.08 | 1,537,827,517.88 |
(3) Key financial information of important non-wholly-owned subsidiaries
Unit: RMB
Subsidiary | Closing balance | |||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Yibin Wuliangye Liquor Sales Co., Ltd. | 52,251,794,015.91 | 1,892,165,619.23 | 54,143,959,635.14 | 23,671,251,317.50 | 6,778,677.35 | 23,678,029,994.85 |
Opening balance | ||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
48,642,681,798.88 | 1,409,440,389.95 | 50,052,122,188.83 | 23,989,163,724.26 | 248,325,516.31 | 24,237,489,240.57 |
Unit: RMB
Subsidiary | 2022 | |||
Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
Yibin Wuliangye Liquor Sales Co., Ltd. | 55,106,792,873.09 | 19,857,416,073.60 | 19,857,416,073.60 | 17,366,966,563.43 |
2021 | ||||
Operating revenue | Net profit | Total comprehensive income | Net cash generated from/used in operating activities | |
58,718,765,149.19 | 16,925,376,124.29 | 16,925,376,124.29 | 21,044,523,299.61 |
2. Interests in joint ventures or associates
(1) Important joint ventures or associates
Joint venture or associate | Principal place of business | Place of registration | Nature of business | The Company’s interest (%) | Accounting treatment of investment in the joint venture or associate | |
Direct | Indirect | |||||
Oriental Outlook Media Co., Ltd. | Beijing | Beijing | Advertising industry | 49.00% | Equity method | |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Yibin | Yibin | Finance | 40.56% | Equity method | |
Yibin Jiamei Intelligent Packaging Co., Ltd. | Yibin | Yibin | Packaging and printing industry | 48.28% | Equity method | |
Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | Beijing | Beijing | Education industry | 20.83% | Equity method |
(2) Key financial information of important associates
Unit: RMB
Closing balance/2022 | Opening balance/2021 | |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | |
Current assets | 10,716,370,139.80 | 15,261,397,498.01 |
Non-current assets | 33,512,182,650.82 | 28,681,784,105.08 |
Total assets | 44,228,552,790.62 | 43,943,181,603.09 |
Current liabilities | 39,453,741,415.00 | 39,338,284,799.58 |
Non-current liabilities | 16,087,688.44 | 5,208,942.19 |
Total liabilities | 39,469,829,103.44 | 39,343,493,741.77 |
Non-controlling interests | ||
Equity attributable to the shareholders of the Company as the parent | 4,758,723,687.18 | 4,599,687,861.32 |
Share of net assets in proportion to the Company’s interest | 1,930,138,327.52 | 1,865,633,396.55 |
Adjustments | ||
--Goodwill | ||
--Unrealized profit of internal transactions | ||
--Others | ||
Carrying amount of equity investments in associates | 1,930,138,327.52 | 1,865,633,396.55 |
Fair value of equity investments in associates with quoted prices on the open market | ||
Operating revenue | 478,928,872.79 | 501,329,916.19 |
Net profit | 215,835,825.86 | 210,463,988.65 |
Net profit of discontinued operations | ||
Other comprehensive income | ||
Total comprehensive income | 215,835,825.86 | 210,463,988.65 |
Dividends received from the associates in the current period | 23,038,080.00 | 41,720,016.00 |
(3) Aggregate financial information of unimportant joint ventures and associates
Unit: RMB
Closing balance/2022 | Opening balance/2021 | |
Joint ventures: | ||
Aggregate amount in proportion to the Company’s interests | ||
Associates: | ||
Total carrying amount of investments | 56,249,197.26 | 45,595,257.08 |
Aggregate amount in proportion to the Company’s interests | ||
--Net profit | 5,028,940.18 | 7,388,096.20 |
--Total comprehensive income | 5,028,940.18 | 7,388,096.20 |
3. Interests in structured entities not included in the consolidated financial statements
There were no structured entities that were not included in the consolidated financial statements in theReporting Period.X Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Unit: RMB
Item | Closing fair value | |||
Fair value measurement at level I | Fair value measurement at level II | Fair value measurement at level III | Total | |
I Consistent fair value measurement | -- | -- | -- | -- |
Receivables financing | 28,904,198,420.44 | 28,904,198,420.44 | ||
Other non-current financial assets | 1,200,000.00 | 1,200,000.00 | ||
Total assets measured at fair value on an ongoing basis | 28,905,398,420.44 | 28,905,398,420.44 | ||
II Fair value measurement on a non-ongoing basis | -- | -- | -- | -- |
2. Basis for determining the market value of fair value measurement at level I on an ongoing and non-ongoing bases
Not applicable
3. For fair value measurement at level II on an ongoing and non-ongoing bases, qualitative andquantitative information on the valuation techniques used and significant parameters
Not applicable
4. For fair value measurement at level III on an ongoing and non-ongoing bases, qualitative andquantitative information on the valuation techniques used and significant parameters
Receivables financing: Due to the short term of notes receivable held by the Company, and the selling time,selling price and selling proportion cannot be estimated reliably, the Company measures the notes receivableaccording to the par value as a reasonable estimate of fair value.Other non-current financial assets: Since the Company holds other non-current financial assets that are nottraded in an active market, and its equity interest in the invested company is low and has no significant influence,it is not realistic and feasible to value the equity in the invested company using the income approach or marketapproach, and there is no recent introduction of external investors to the invested company or transfer of equityamong shareholders that can be used as a reference basis for determining fair value. In addition, the Companyhas not found any significant changes in the internal and external environment of the invested company since thebeginning of the year from the analysis of the relevant information available, therefore, it is a "limitedcircumstances" in which the carrying cost can be used as the best estimate of the fair value, and therefore the fairvalue is based on the cost at the end of the year.
5. For fair value measurement at level III on an ongoing basis, reconciliation information betweenbeginning and ending carrying values and sensitivity analysis of unobservable parameters
Not applicable
6. For fair value measurement items on a continuous basis, if there is a conversion between different levelsin the current period, the reasons for the conversion and the policy for determining the conversion timepoint
Not applicable
7. Changes in valuation techniques occurring in the current period and reasons for changes
Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Not applicable
XI Related Parties and Related-Party Transactions
1. Information on the parent company of the Company
Name of the parent company | Place of registration | Nature of business | Registered capital | The parent company’s interest in the Company | The parent company’s voting right percentage in the Company |
Yibin Development Holding Group Co., Ltd. | Yibin | Investment | RMB5 billion | 34.43% | 34.43% |
Information on the parent company of the Company:
Yibin Development Holding Group Co., Ltd. is a wholly state-owned company funded and established bythe People’s Government of Yibin City. Legal representative of the company is Liang Li and its registeredcapital is RMB5 billion. Its business scope includes the state-owned property right (including state-ownedshares), state-owned assets and state investments as authorized by the People's Government of Yibin City. Thecompany, as an investor, conducts capital management and assets management by holding, shareholding,investment and receiving assignment, transfer, auction, and lease within the limits of authority.
Main functions of Yibin Development Holding Group Co., Ltd. include: First, holding state-owned equityand exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s Government of YibinCity; second, raising funds for key construction projects as an investment and financing platform of the People’sGovernment of Yibin City, and investing in such projects by shareholding and holding; third, promoting thepreserve and increase the value of state-owned assets and economic development of the city by capitalmanagement and assets management.
Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds 100%of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00 shares of theCompany directly or indirectly, taking up 54.83% of the total share capital of the Company.
The State-owned Assets Supervision and Administration Commission of the People’s Government of YibinCity is the ultimate controller of the Company.
2. Subsidiaries of the Company
Refer to the Note "IX Interests in Other Entities" for information about subsidiaries of the Company.
3. Joint ventures and associates of the Company
Refer to the Note "IX Interests in Other Entities" for information about important joint ventures andassociates of the Company.Other joint ventures or associates that were involved in related-party transactions with the Company in thecurrent period, or that were involved in related-party transactions with the Company in prior periods withbalances lasting into the current period:
Name of joint venture or associate | Relationship with the Company |
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | Associate |
Yibin Jiamei Intelligent Packaging Co., Ltd. | Associate |
4. Other related parties
Names of other related parties | Relationship between other related parties and the Company |
Sichuan Yibin Wuliangye Group Co., Ltd. | The legal representative of the Company concurrently serves as the Secretary of the CPC Committee and Chairman of the Board of Wuliangye Group, and some directors and officers of the Company concurrently hold positions in Wuliangye Group. Wuliangye Group directly holds a 20.40% interest in the Company. |
Yibin Wuliangye Group I&E Co., Ltd. | Subsidiary of Wuliangye Group |
Yibin Jinlong Trade Development Co., Ltd. | Subsidiary of Wuliangye Group |
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Subsidiary of Wuliangye Group |
Yibin Wuliangye Ecological Brewing Co., Ltd. | Subsidiary of Wuliangye Group |
Chengdu Wuliangye Grand Hotel Co., Ltd. | Subsidiary of Wuliangye Group |
Yibin Paper Industry Co., Ltd. | Subsidiary of Wuliangye Group |
Sichuan Yibin Push Group Co., Ltd. | Subsidiary of Wuliangye Group |
Sichuan Yibin Push Mold Co., Ltd. | Subsidiary of Push Group |
Sichuan Push Acetati Company Limited | Subsidiary of Push Group |
Sichuan Yibin Push Drive Co., Ltd. | Subsidiary of Push Group |
Chengdu Push Medical Plastics Packaging Co., Ltd. | Subsidiary of Push Group |
Sichuan Yibin Push Building Materials Co., Ltd. | Subsidiary of Push Group |
Sichuan Yibin Push Auto Parts Co., Ltd. | Subsidiary of Push Group |
Push Information & Automation (Chengdu) Co., Ltd. | Subsidiary of Push Group |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Subsidiary of Push Group |
Yibin Push Linko Technology Co., Ltd. | Subsidiary of Push Group |
Sichuan Putian Packaging Co., Ltd. | Subsidiary of Push Group |
Yibin Push Assets Management Co., Ltd. | Subsidiary of Push Group |
Sichuan Yibin Push International Co., Ltd. | Subsidiary of Push Group |
Push Ningjiang Machine Tool Co., Ltd. | Subsidiary of Push Group |
Zhejiang Pukai New Material Co., Ltd. | Subsidiary of Push Group |
Chongqing PUSH POWER Technology Co., Ltd. | Subsidiary of Push Group |
Yibin Puyi Automobile Technology Co., Ltd. | Subsidiary of Push Group |
Sun Display Co., Ltd. | Subsidiary of Push Group |
Sichuan Yibin Licai Group Co., Ltd. | Subsidiary of Wuliangye Group |
Yibin Wucai Packaging Co., Ltd. | Subsidiary of Licai Group |
Sichuan Yibin Global Group Co., Ltd. | Subsidiary of Wuliangye Group |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Subsidiary of Global Group |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Subsidiary of Global Group |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Subsidiary of Global Group |
Yibin Global Energy Conservation Service Co., Ltd. | Subsidiary of Global Group |
Sichuan Global Insulator Co., Ltd. | Subsidiary of Global Group |
Yaohua (Yibin) Glass, Co., Ltd. | Associate of Global Group |
Yibin City Commercial Bank Co., Ltd. | Wuliangye Group holds a 19.99% interest |
Yibin Wuliangye Fund Management Co., Ltd. | Subsidiary of Wuliangye Group |
Yibin Wuliangye Rural Development Fund (L.P.) | Subsidiary of Wuliangye Group |
Yibin Wuliangye Tea Industry Development Fund (L.P.) | Subsidiary of Wuliangye Rural Development Fund |
Wuming Tea Industry Holding Co., Ltd. | Subsidiary of Wuliangye Tea Industry Development Fund |
Yibin Chuanhong Tea Group Co., Ltd. | Subsidiary of Wuliangye Tea Industry Development Fund |
Sichuan Linhu Tea Industry Co., Ltd. | Subsidiary of Chuanhong Tea Group |
Sichuan Nongwu E-commerce Co., Ltd. | Subsidiary of Chuanhong Tea Group |
Anji Logistic Group Co., Ltd. Sichuan | Subsidiary of Wuliangye Group |
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Subsidiary of Anji Logistic Group |
Yibin An Shi Ji International Logistics Co., Ltd. | Subsidiary of Anji Logistic Group |
Yibin An Shi Ji Auto Service Co., Ltd. | Subsidiary of Anji Logistic Group |
Sichuan An Shi Ji Supply Chain Management Co., Ltd. | Subsidiary of Anji Logistic Group |
Sichuan Andaxin Logistics Co., Ltd. | Subsidiary of Anji Logistic Group |
Yibin Jichi Automobile Sales Service Co., Ltd. | Subsidiary of Anji Logistic Group |
Yibin An Shi Ji Auto Service Co., Ltd. (Chengdu Branch) | Subsidiary of Anji Logistic Group |
Wuliangye Group Anji Shipping Co., Ltd. | Subsidiary of Anji Logistic Group |
Anji Logistic Group Co., Ltd. (Chengdu, Sichuan Branch) | Subsidiary of Anji Logistic Group |
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Subsidiary of Wuliangye Group |
Sichuan Huansheng Pharmacy Co., Ltd. | Subsidiary of Wuliang Pharmaceutical |
Yibin Tianyuan Group Co., Ltd. | Subsidiary of Yibin Development Group |
Yibin Tianyuan Goods&Materials Industry Group Co., Ltd. | Subsidiary of Tianyuan Group |
Yibin Tianyi New Material Technology Co., Ltd. | Subsidiary of Tianyuan Group |
Yibin Tianchang Logistics Co., Ltd. | Subsidiary of Tianyuan Group |
Yibin Grace Group Co., Ltd. | Subsidiary of Yibin Development Group |
Yibin Grace Fiber Industry Co., Ltd. | Subsidiary of Grace Group |
Yibin Hiest Fibre Limited Corporation | Subsidiary of Grace Group |
Yibin Jinxilai Changxin Industry Co., Ltd. | Subsidiary of Grace Group |
Yibin Jinxiuyuan Landscaping Co., Ltd. | Subsidiary of Grace Group |
Yibin Grace Mechanical and Electrical Engineering Co., Ltd. | Subsidiary of Grace Group |
Sacred Mountain Molin Group Co., Ltd. Si Chuan | Subsidiary of Wuliangye Group |
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | Subsidiary of Sacred Mountain Molin Group |
Sichuan Shuzhan New Materials Co., Ltd. | Subsidiary of Sacred Mountain Molin Group |
Yibin Sanjiang Investment and Construction Group Co., Ltd. | Subsidiary of Yibin Development Group |
Yibin Xianghe Aviation Service Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
Cowin Automobile Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
Yibin Jindun Security Service Co., Ltd. | Subsidiary of Sanjiang Investment and Construction Group |
Sichuan Haida Rubber Group Co., Ltd. | Subsidiary of Wuliangye Group |
Sichuan Tyre and Rubber Co., Ltd. | Subsidiary of Haida Group |
Sichuan Gloport Investment and Development Group Co., Ltd. | Subsidiary of Yibin Development Group |
Yibin Lingang Business Service Co., Ltd. | Subsidiary of Gloport Investment Group |
Yibin Urban and Traffic Construction Investment Group Co., | Subsidiary of Yibin Development Group |
Ltd. | |
Yibin Changsheng Engineering Management Co., Ltd. | Subsidiary of Yibin Urban and Traffic Construction Investment Group |
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Subsidiary of Wuliangye Group |
Sichuan Wuliangye Baojianjiu Sales Co., Ltd. | Subsidiary of Health Liquor Group |
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering ofservicesPurchases of goods/receipt of services:
Unit: RMB
Related party | Content of transaction | 2022 | Approved transaction amount | Over the approved transaction amount or not | 2021 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Raw materials, glass bottles, etc. | 486,353,033.02 | 489,352,080.56 | ||
Sacred Mountain Molin Group Co., Ltd. Si Chuan | Raw materials, etc. | 279,025,424.54 | 244,713,764.87 | ||
Sichuan Yibin Push Group Co., Ltd. | RFID anti-counterfeit labels etc. | 74,657,518.94 | 67,959,749.62 | ||
Yibin Jinlong Trade Development Co., Ltd. | Raw materials, etc. | 74,547,521.47 | 29,445,309.93 | ||
Chengdu Push Medical Plastics Packaging Co., Ltd. | Raw materials, etc. | 70,910,604.02 | 71,018,790.28 | ||
Sacred Mountain Molin Group Co., Ltd. Si Chuan | PPE, etc. | 63,612,864.25 | 63,567,442.37 | ||
Wuming Tea Industry Holding Co., Ltd. | Tea, etc. | 54,932,985.64 | 63,205,148.32 | ||
Yibin Chuanhong Tea Group Co., Ltd. | Tea | 29,638,828.00 | 1,908,311.50 | ||
Sichuan Yibin Push Mold Co., Ltd. | Raw materials, etc. | 64,080,623.14 | 68,939,522.33 | ||
Sichuan Yibin Push Drive Co., Ltd. | Raw materials, etc. | 17,523,314.19 | 25,198,204.17 | ||
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | PPE, etc. | 16,261,166.33 | |||
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Medicines, etc. | 14,620,065.38 | 11,174,519.56 | ||
Sichuan Putian Packaging Co., Ltd. | Raw materials, etc. | 13,561,665.00 | 10,720,904.50 | ||
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Raw materials, etc. | 12,271,638.57 | 694,466.22 | ||
Chengdu Huayu Glass Manufacturing Co., Ltd. | Glass bottles | 21,780,109.59 | 3,233,095.59 | ||
Sichuan Yibin Push Building Materials Co., Ltd. | Raw materials | 5,487,962.63 | 166,591.02 |
Sichuan Huansheng Pharmacy Co., Ltd. | Medicines | 2,567,710.74 | 641,800.51 | ||
Sichuan Yibin Push Auto Parts Co., Ltd. | Raw materials, etc. | 2,006,480.60 | |||
Push Information & Automation (Chengdu) Co., Ltd. | Raw materials, etc. | 1,110,587.45 | |||
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Health liquor | 44,958,850.17 | |||
Sichuan Shuzhan New Materials Co., Ltd. | Raw materials, etc. | 468,746.01 | 1,279,766.67 | ||
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Raw materials, etc. | 450,353.40 | 1,406,227.36 | ||
Yibin Wucai Packaging Co., Ltd. | Packaging materials, etc. | 44,574,105.04 | |||
Sichuan Wuliangye Baojianjiu Sales Co., Ltd. | Health liquor | 39,195,390.87 | |||
Yibin Push Linko Technology Co., Ltd. | Raw materials, etc. | 17,849,789.80 | |||
Yibin An Shi Ji International Logistics Co., Ltd. | Liquor | 2,026,327.43 | |||
Other miscellaneous purchases of goods from related parties | 2,683,557.95 | 4,519,425.55 | |||
Total purchases of goods from related parties | 1,308,552,760.86 | 1,307,749,584.24 | |||
Anji Logistic Group Co., Ltd. Sichuan | Freight and miscellaneous charges, service charges, etc. | 797,438,814.15 | 691,658,046.61 | ||
Yi Bin Jia Mei Smartpackaging Co., Ltd. | External processing expenses | 87,842,293.03 | 41,632,320.82 | ||
Sichuan Andaxin Logistics Co., Ltd. | External labour costs | 77,361,088.22 | |||
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Freight and miscellaneous charges, shuttle service charges, etc. | 69,437,258.05 | 38,527,096.20 | ||
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Repair expenses, etc. | 9,875,552.57 | 8,250,361.82 | ||
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Marketing support expenses | 8,157,421.41 | |||
Yibin An Shi Ji Auto Service Co., Ltd. | Freight and miscellaneous charges, repair charges, vehicle costs, etc. | 5,718,811.96 | 5,274,819.29 | ||
Yibin Wucai Packaging Co., Ltd. | External processing expenses | 3,064,274.15 | |||
Yibin An Shi Ji International Logistics Co., Ltd. | Freight and miscellaneous charges | 1,352,869.02 | |||
Yibin Jinlong Trade Development Co., Ltd. | Repair expenses | 1,337,300.00 | 2,899,211.82 | ||
Yibin Global Energy Conservation Service Co., Ltd. | Smoke treatment, etc. | 644,617.72 | 2,579,378.09 | ||
Yibin Jichi Automobile Sales Service Co., Ltd. | Vehicle costs, | 188,590.86 | 1,916,208.75 |
etc. | |||||
Chengdu Wuliangye Grand Hotel Co., Ltd. | Image promotion expenses | 6,830,188.54 | |||
Wuliangye Group Anji Shipping Co., Ltd. | Freight and miscellaneous charges | 3,909,107.29 | |||
Other miscellaneous receipts of services from related parties | 4,029,096.79 | 2,319,214.57 | |||
Total receipts of services from related parties | 1,066,447,987.93 | 805,795,953.80 |
Notes to the related-party transactions involving purchases of goods/receipt of services:
Note 1: The Company and Sichuan Yibin Global Group Tianwo Trade Co., Ltd. entered into the Purchaseand Sales Agreement and Agreement, according to which the Company procures raw materials, cartons, glassbottles, etc. from Sichuan Yibin Global Group Tianwo Trade Co., Ltd. The pricing principle is market quotations,and the specific purchases and sales demand may be determined according to the orders by the two parties. TheAgreement is valid from 1 January 2021 to 31 December 2023.Note 2: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the LaborProtection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according towhich the Company procures labor protection appliances, packing bags, and festival food from Sacred MountainMolin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.Note 3: The Company and Chengdu Push Medical Plastics Packaging Co., Ltd. entered into ProcurementContract. The Company procures films, bags, boxes, accessories, etc. from Chengdu Push Medical PlasticsPackaging Co., Ltd. According to the bid agreement, the Company will place an order with Chengdu PushMedical Plastics Packaging Co., Ltd. with the bid result. Specific information on the name, quantity, amount, etc.of accessories can be seen in the procurement orders signed by both parties. The price of goods is the factoryprice in lump sum, including the factory price of materials, packing expenses, transportation loss charges,transportation expenses, and various testing fees of the material, various risks, profits, taxes, and other expenses.The Agreement is valid for three year since the bid opening day.
Note 4: On 11 December 2020, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into theSupply Agreement. The Company procures molds, spare parts, systems, R&D restructuring and maintenanceprojects, injection products and raw material, value-added services and so on from Sichuan Yibin Push Mold Co.,Ltd. The agreement products are paid at market price, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.
Note 5: On 5 March 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the Related-Party Transaction Framework Agreement. The Company procures equipment and anti-counterfeit labels fromPush Group. Refer to corresponding purchases and sales contract for details on sales of goods, unit, quantity, andamount. The product price is the factory price in lump sum, including the factory price of materials, packingexpenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted bythe country) and other expenses. If delivery is requested, extra expenses such as the freight charge, insuranceexpense and delivery expense are needed based on the factory price. The Agreement is valid from 5 March 2021to 31 December 2023.
Note 6: The Company and Wuming Tea Industry Holding Co., Ltd. entered into the Agreement, accordingto which the Company procures tea leaves and peripheral products of tea, tea-related prepackaged foods and teafor heatstroke prevention and cooling, papers products, and marketing products from Wuming Tea IndustryHolding Co., Ltd. The pricing principle is based on the value and cost, oriented by market competition, takingthe historical price for reference and the costs, profits, taxes and dues, quality, delivery date, order quantity, after-sales service, logistics, packaging, payment terms into full consideration. The specific purchases and salesdemand may be determined according to the orders by the two parties. The Agreement is valid from 1 January2021 to 31 December 2023.
Note 7: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the LaborProtection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according towhich the Company procures labor protection appliances, packing bags, and festival food from Sacred Mountain
Molin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.
Note 8: The Company and Anji Logistic Group Co., Ltd. Sichuan entered into the Agreement on 1 January2021, according to which the Company procures the services of transportation and delivery, warehousing andstevedoring. The pricing principle is price fairness, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.Sale of goods/rendering of services:
Unit: RMB
Related party | Content of transaction | 2022 | 2021 |
Yibin Wuliangye Group I&E Co., Ltd. | Liquor products, etc. | 890,325,314.77 | 409,320,476.95 |
Yibin Jinlong Trade Development Co., Ltd. | Liquor products | 336,748,937.76 | 816,348,512.08 |
Sichuan Putian Packaging Co., Ltd. | Bottle caps, slices, etc. | 147,098,873.26 | 177,193,094.91 |
Yibin An Shi Ji International Logistics Co., Ltd. | Liquor products, etc. | 96,358,269.24 | |
Wuming Tea Industry Holding Co., Ltd. | Liquor products, etc. | 88,605,502.59 | 416.04 |
Sichuan Global Insulator Co., Ltd. | Glass bottles, etc. | 85,983,531.87 | 62,123.90 |
Sichuan Yibin Global Group Co., Ltd. | Glass bottles, raw materials, etc. | 59,487,606.48 | 176,449,056.05 |
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Raw materials, etc. | 50,054,556.67 | 47,195.44 |
Sichuan Nongwu E-commerce Co., Ltd. | Liquor products | 41,097,469.02 | 49,538,612.53 |
Chengdu Push Medical Plastics Packaging Co., Ltd. | Slices, rolls, etc. | 37,044,899.55 | 55,077,686.69 |
Yibin Tianyuan Goods&Materials Industry Group Co., Ltd. | Raw materials, etc. | 23,198,309.63 | |
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | Liquor products, etc. | 17,820,858.43 | 36,147,029.43 |
Sichuan Yibin Push Drive Co., Ltd. | Slices, etc. | 10,870,632.10 | 19,366,272.90 |
Zhejiang Pukai New Material Co., Ltd. | Slices | 9,609,175.58 | |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Cartons, etc. | 6,311,751.24 | 6,490,641.32 |
Sichuan Yibin Push Building Materials Co., Ltd. | Raw materials, etc. | 5,730,155.65 | 364,117.86 |
Sichuan Shuzhan New Materials Co., Ltd. | Hangtags, labels, etc. | 5,456,605.98 | 11,348,797.14 |
Yibin Xianghe Aviation Service Co., Ltd. | Liquor products | 5,094,330.99 | |
Yibin Grace Fiber Industry Co., Ltd. | Cartons | 4,139,121.41 | |
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Liquor products | 3,233,235.08 | 45,012,917.77 |
Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | Raw materials, etc. | 2,895,562.51 | 2,128,083.34 |
Sichuan Linhu Tea Industry Co., Ltd. | Packaging boxes, etc. | 2,708,303.80 | 8,657,314.16 |
Sichuan Nongwu E-commerce Co., Ltd. | Miscellaneous items, paper, etc. | 2,482,856.40 | 2,055,108.18 |
Yibin Wuliangye Ecological Brewing Co., Ltd. | Raw materials, etc. | 2,285,500.82 | 2,035,519.70 |
Yibin Tianyi New Material Technology Co., Ltd. | Cartons | 2,277,096.90 | |
Sichuan Yibin Push Auto Parts Co., Ltd. | Raw materials, etc. | 1,910,077.66 | 722,332.60 |
Cowin Automobile Co., Ltd. | Liquor products | 1,911,504.42 | |
Sichuan Yibin Push International Co., Ltd. | Slices | 1,621,563.45 | 3,646,154.03 |
Yibin Hiest Fibre Limited Corporation | Cartons | 1,495,038.88 |
Anji Logistic Group Co., Ltd. Sichuan | Raw materials, etc. | 1,220,663.96 | |
Sichuan Yibin Push Mold Co., Ltd. | Liquor, food and beverage, etc. | 1,203,612.63 | 1,625,007.87 |
Yibin Jinxilai Changxin Industry Co., Ltd. | Glass bottles, etc. | 1,150,733.24 | |
Push Ningjiang Machine Tool Co., Ltd. | Liquor products | 1,061,946.90 | 1,061,946.90 |
Yi Bin Jia Mei Smartpackaging Co., Ltd. | Paper, etc. | 993,977.16 | 513,031.82 |
Anji Logistic Group Co., Ltd. Sichuan | Liquor products | 275,706.18 | 796,696,566.44 |
Sichuan Tyre and Rubber Co., Ltd. | Liquor products | 265,486.73 | 1,356,672.57 |
Sichuan An Shi Ji Supply Chain Management Co., Ltd. | Liquor products | 254,910.61 | 1,469,515.07 |
Sichuan Push Acetati Company Limited | Raw materials, etc. | 56,833.55 | 17,958,510.06 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Glass bottles, paper, industrial sodium carbonate, etc. | 48,054.66 | 17,429,899.65 |
Yibin Jinlong Trade Development Co., Ltd. | Mixed grains, rice bran | 3,458,626.32 | 3,871,702.12 |
Yibin Wucai Packaging Co., Ltd. | Liquor products | 44,573,505.04 | |
Sichuan Yibin Push Group Co., Ltd. | Plastics | 12,277,424.74 | |
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Liquor products | 3,320,666.38 | |
Sichuan Linhu Tea Industry Co., Ltd. | Liquor products | 1,221,238.94 | |
Other miscellaneous sales to related parties | 6,124,646.14 | 7,618,094.91 | |
Total | 1,959,971,840.22 | 2,733,005,245.53 |
Notes to the related-party transactions involving sale of goods/rendering of services:
Note 1: On 1 January 2021, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into theExport Commodities Purchase and Sales Agreement. According to the Agreement, Wuliangye Group I&E shallgive the Company prior written notice of specific requirements for specification, model, packaging, anti-counterfeit label, quantity, and delivery term of the Wuliangye series products according to the demands of theinternational market, and prepay 60% of the purchase price to the Company. The Company shall organize theproduction and supply Wuliangye series liquor products in a timely manner according to the export demands ofWuliangye Group I&E. Due to some factors such as the change of the exchange rate, the price that the Companycharges for the agreed products supplying to Wuliangye Group I&E is floating price. The Agreement is validfrom 1 January 2021 to 31 December 2023.Note 2: On 22 December 2020, the Company and Sichuan Putian Packaging Co., Ltd. entered into theFramework Contract. Sichuan Putian Packaging Co., Ltd. procures bulk chemical materials, packaging productsand other materials from the Company for production and operation. Refer to corresponding purchases and salescontract for details on sales of goods, unit, quantity, and amount. The product price is the factory price in lumpsum, including the factory price of materials, packing expenses, and various testing fees of the material, variousrisks, profits, taxes (utilizing the tax rate adjusted by the country) and other expenses. If delivery is requested,extra expenses such as the freight charge, insurance expense and delivery expense are needed based on thefactory price. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Global Group Co., Ltd. entered into theAgreement. Sichuan Yibin Global Group Co., Ltd. procures glass bottles and so on from the Company. Thepricing principle is as it is agreed in the contract, and the specific purchases and sales demand may bedetermined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31December 2023.
Note 4: The Company and Chengdu Push Medical Plastics Packaging Co., Ltd. entered into the FrameworkContract and Related-Party Transaction Framework Agreement. Chengdu Push Medical Plastics Packaging Co.,Ltd. procures bulk chemical materials, packaging products and other materials from the Company for productionand operation. Please refer to corresponding purchases and sales contract for details on sales of goods, unit,quantity, and amount. The product price is the factory price in lump sum, including the factory price of materials,packing expenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate
adjusted by the country) and other expenses. If delivery is requested, extra expenses such as the freight charge,insurance expense and delivery expense are needed based on the factory price. The Agreement is valid from 1January 2021 to 31 December 2023.Note 5: The Company and Sichuan Nongwu E-commerce Co., Ltd. entered into the Agreement. SichuanNongwu E-commerce Co., Ltd. procures Wuliang Nongxiang wine from the Company, and the specificpurchases and sales demand may be determined according to the orders by the two parties. The Agreement isvalid from 1 January 2021 to 31 December 2023.Note 6: On 1 September 2020, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery andMarketing Co., Ltd. entered into the Base Wine Purchase Agreement. According to the market demand, SichuanYibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. put forward specific requirements for thequantities, delivery date and so on of the agreed products in advance. Then, the Company supplies the agreedproducts to it based on its demand for production and operation. For each actual supply of the agreed products,the actual settle quantity should be the quantity determined by both parties, and the price of the agreed productsshall strictly obey the market price with the delivery after payment. The Agreement is valid from 1 January 2021to 31 December 2023.Note 7: On 15 December 2020, the Company and Yibin Wucai Packaging Co., Ltd. entered into theAgreement. Yibin Wucai Packaging Co., Ltd. procures finished liquor and others from the Company. The pricingprinciple is as it is agreed in the contract, and the specific purchases and sales demand may be determinedaccording to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
(2) Leases between the Company and related parties
The Company as the lessor:
Unit: RMB
Lessee | Type of the leased asset | Lease income recognized in the current period | Lease income recognized in the prior period |
Sichuan Yibin Push Building Materials Co., Ltd. | Warehouses | 657,289.27 | 817,008.36 |
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Buildings and constructions | 384,171.44 | 384,171.44 |
Anji Logistic Group Co., Ltd. Sichuan | Buildings and constructions | 169,268.48 | |
Sichuan Putian Packaging Co., Ltd. | Warehouses | 63,048.44 | 74,109.62 |
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Buildings and constructions | 51,428.53 | |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Warehouses | 60,317.51 |
The Company as the lessee:
Unit: RMB
Lessor | Type of the leased asset | Lease expense on short-term leases and leases of low-value assets accounted with a simplified approach (if applicable) | Variable lease payments not included in lease liabilities (if applicable) | Lease payments | Interest expense on lease liabilities | Addition of right-of-use assets | |||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||
Chengdu Huayu Glass Manufacturing Co., Ltd. | Equipment | 10,570.50 | 15,855.75 | 3,945,619.28 | 4,053,906.15 | 100,468.44 | 754,209.05 | ||||
Anji Logistic Group Co., Ltd. Sichuan | Vehicles | 126,517.41 | |||||||||
Anji Logistic Group Co., Ltd. Sichuan | Warehouses | 490,000.11 | 716,376.87 | 61,860,729.58 | 130,597,335.81 | 23,103,665.50 | 19,603,124.18 | 757,254.25 | 342,054.67 | 34,272,706.59 | |
Anji Logistic Group Co., Ltd. (Chengdu, Sichuan Branch) | Warehouses | 376,098.91 | 580,823.31 | ||||||||
Sichuan An Shi Ji Supply Chain Management Co., Ltd. | Warehouses | 25,943.39 | 28,301.88 | ||||||||
Sichuan Putian Packaging Co., Ltd. | Equipment | 29,496.14 | 11,865.31 | ||||||||
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | Plant | 2,742,857.12 | 2,057,142.84 | 210,054.49 | 7,847,140.12 | ||||||
Sichuan Yibin Global Group Co., Ltd. | Warehouses | 2,989,811.34 | 1,494,905.67 | 84,675.42 | 61,061.66 | 5,827,142.31 | |||||
Sichuan Yibin Licai Group Co., Ltd. | Buildings and | 4,189,086.00 | 10,794,555.85 |
constructions (note 3) | |||||||||||
Sichuan Yibin Push Group Co., Ltd. | Buildings and constructions (note 4) | 6,715,238.08 | 6,715,238.10 | 446,482.91 | 1,189,835.59 | ||||||
Sichuan Yibin Push Group Co., Ltd. | Warehouses | 2,510,558.74 | 2,510,537.14 | 84,882.52 | 166,924.34 | ||||||
Sichuan Yibin Push Auto Parts Co., Ltd. | Equipment | 62,006.20 | 130,810.30 | ||||||||
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | Vehicles | 286,200.00 | 5,909.04 | 623,858.85 | |||||||
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | Warehouses | 834,227.59 | 834,227.59 | 53,826.65 | 26,243.24 | 2,408,821.15 | |||||
Sichuan Yibin Wuliangye Group Co., Ltd. | Buildings and constructions (note 2) | 1,522,182.20 | 29,255,400.00 | 29,255,400.00 | 1,533,162.69 | 2,485,292.89 | 83,200,577.90 | ||||
Sichuan Yibin Wuliangye Group Co., Ltd. | Land (note 1) | 296,608,546.40 | 296,608,546.40 | 15,544,110.07 | 25,197,390.30 | 843,537,258.68 | |||||
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Warehouses | 702,124.30 | 3,714,028.94 | 3,738,763.42 | 217,815.12 | 637,038.24 | 4,019,872.24 | ||||
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Equipment | 43,068.00 |
Yibin Push Linko Technology Co., Ltd. | Buildings and constructions | 907,200.00 | 897,933.34 | 1,885,428.57 | 1,885,428.57 | 68,515.70 | 120,978.03 | 1,235,272.20 | |||
Yibin Push Linko Technology Co., Ltd. | Warehouses | 2,219,398.11 | 2,024,924.51 | ||||||||
Yibin Push Assets Management Co., Ltd. | Warehouses | 4,128,446.44 | 3,735,473.53 | 7,751,407.36 | 146,943.35 | 427,923.75 | 4,718,715.17 | 0.00 | |||
Sun Display Co., Ltd. | Warehouses | 437,084.60 | 42,884.00 | ||||||||
Sichuan Andaxin Logistics Co., Ltd. | Warehouses | 65,094.34 |
Notes to the leases between the Company and related parties:
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered intothree Land Lease Agreements, according to which Wuliangye Group leased five plots of lands (Wujiaba LandParcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, and Zhuchangqu Land Parcel) with anarea of 2,315,349.08 square meters, Guifei Land Parcel, Old Summer Palace Land Parcel I and II, Nanxi LandParcel I, II, and III, Zhuchangqu Land Parcel with an area of 725,587.75 square meters, and 1,000 mu of land (anarea of 666,670.00 square meters) in the north side of Hongba Road owned by it to the Company. The annualrents are RMB185,227,900, RMB5,804,700and RMB53,333,600, respectively, totaling RMB296,608,500. Thelease term is from 1 January 2021 to 31 December 2023.Land price criterion:
The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. is formulatedwith reference to the land lease criterion of previous years and in accordance with the Reply of Yibin LandResource Administration Bureau on the Request of Wuliangye Group for Adjustment of the Land Lease Criterion(YGTH [2010] No. 53, 12 March 2010), which states that "the rent of RMB50 to RMB110 per square meter peryear for the industrial land in this area is consistent with prevailing land price of Yibin". The Company andWuliangye Group determine the rent of leased land as RMB80 per square meter per year through mutualagreement.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered intothe Operation and Management Areas Lease Agreement, according to which Wuliangye Group leases part of theoperation and management areas (including the office building, multi-function pavilion, etc.) owned by it to theCompany. The leased area is 27,121.32 square meters, with the annual rent of RMB29,255,400. The lease term isfrom 1 January 2021 to 31 December 2023.
Note 3: On 19 November 2020, the Company and Sichuan Yibin Licai Group Co., Ltd. entered into theFactory Building Lease Contract, according to which Licai Group leases the high-end product workshop building(1 F-5 F) at its headquarter to the Company. The leased area is 20,557.30 square meters, with the annual rent (taxinclusive) of RMB16,288,386. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 4: On 1 January 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into theOperation and Management Areas Lease Agreement, according to which Push Group leases its office buildinglocated at No. 150, West Minjiang Road, Yibin and all office equipment in the office building to the Company.The leased area is 6,536.70 square meters, with the annual rent of RMB7.051 million. The lease term is from 1January 2021 to 31 December 2023.
(3) Guarantees between the Company and related parties
There were no guarantees between the Company and related parties during the Reporting Period.
(4) Loans between the Company and related parties
There were no loans between the Company and related parties during the Reporting Period.
(5) Asset transfers and debt restructuring involving related parties
There were no asset transfers or debt restructuring involving related parties during the Reporting Period.
(6) Remuneration of key management
Unit: RMB’0,000
Item | 2022 | 2021 |
Remuneration of key management | 1,304.21 | 1,407.67 |
(7) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
Related party | Content of transaction | 2022 | 2021 |
Sichuan Yibin Wuliangye Group Co., Ltd. | Trademark and logo royalties (Note 1) | 862,086,498.68 | 739,709,867.75 |
Sichuan Yibin Wuliangye Group Co., Ltd.
Sichuan Yibin Wuliangye Group Co., Ltd. | Comprehensive service fee (Note 2) | 77,670,062.58 | 79,499,446.08 |
Sichuan Yibin Push Mold Co., Ltd. | Procurement of equipment | 4,345,132.74 | |
Yibin An Shi Ji Auto Service Co., Ltd. | Procurement of transportation | 15,450,000.00 |
equipment | |||
Yibin An Shi Ji Auto Service Co., Ltd. (Chengdu Branch) | Procurement of transportation equipment | 756,340.64 | 1,002,032.36 |
Yibin Jichi Automobile Sales Service Co., Ltd.
Yibin Jichi Automobile Sales Service Co., Ltd. | Procurement of transportation equipment | 11,861,194.56 | 5,075,292.71 |
Push Information & Automation (Chengdu) Co., Ltd. | Procurement of equipment and software systems | 7,176,823.71 | 5,525,663.76 |
Sichuan Yibin Push Intelligent Technology Co., Ltd. | Procurement of equipment | 6,570,295.36 | 6,506,484.48 |
Chongqing PUSH POWER Technology Co., Ltd. | Procurement of equipment | 167,433.63 |
Yibin Global Photoelectric Energy ConservationTechnology Co., Ltd.
Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | Procurement of equipment | 142,477.88 | |
Chengdu Huayu Glass Manufacturing Co., Ltd. | Procurement of equipment | 2,298.01 | |
Sichuan Yibin Push Group Co., Ltd. | Procurement of equipment | 6,207,106.20 | |
Sichuan Yibin Wuliangye Group Co., Ltd. | Land use rights | 814,316.92 | |
Sichuan Yibin Wuliangye Group Co., Ltd. | Procurement of equipment | 339,022.37 |
Yaohua (Yibin) Glass Co., Ltd.
Yaohua (Yibin) Glass Co., Ltd. | Procurement of transportation equipment | 32,998.25 | |
Sun Display Co., Ltd. | Sale of equipment | 5,843.81 | |
Yibin Jichi Automobile Sales Service Co., Ltd. | Sale of equipment | 849,557.52 |
Sichuan Yibin Push Mold Co., Ltd.
Sichuan Yibin Push Mold Co., Ltd. | Sale of transportation equipment | 423,194.48 |
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered intothe Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses to the Companythe nonexclusive right of use of one factory emblem, the nonexclusive right of use of seven trademarks,exclusive right of use of 182 trademarks, and unpaid exclusive right of use of eight trademarks. The royalty shallbe paid by the following means: a) The royalty of "factory emblem" shall be paid at 1.27% of the annual salesrevenue from all liquor products using the factory emblem; b) no royalty shall be paid for trademark of liquorproducts of which the annual sales revenue is less than 50 tons, and royalty of trademark of liquor products soldby 50 tons (inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paidby the following means: Trademark royalty of products with selling price at RMB30,000 per ton and above shallbe RMB1,500 per ton; and that of products with selling price at RMB12,000 per ton and above but belowRMB30,000 per ton shall be RMB1,400 per ton; that of products with selling price below RMB12,000 shall beRMB1,300 per ton. The Agreement is valid from 1 January 2021 to 31 December 2023.Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered intothe Comprehensive Service Agreement, according to which the latter shall provide the agreed service to theCompany by the quantity agreed by both parties from time to time. Both parties measure the services at theactual cost, and the rate of increase of the unit cost price compared with the previous year shall be no more thanthe inflation index of previous year plus 5% or the growth factor of consumer price index of Sichuan Province,whichever is lower. The increase shall not be subject to the above limit when the service scope is expanded, andthe service shall still be measured at the actual cost of provision of the service. The Agreement is valid from 1January 2021 to 31 December 2023.b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.On 15 April 2022, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafterreferred to as "Wuliangye Group Finance") entered into the Financial Service Agreement. The main contents areloan and deposit services. As such, both parties agreed to continue to implement in 2022 ―the Financial ServiceAgreement signed between the Company and Wuliangye Group Finance on 2 April 2021‖, i.e. the daily balanceof deposits in 2022 was no more than RMB47.9 billion, and the daily balance of loans in 2022 was no more thanRMB10 billion.The total deposits of the Company with Wuliangye Group Finance was RMB35,044,331,678.13 at the endof the period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to the Company,assuring that relevant deposits and loans of the Company with Wuliangye Group Finance are safe; the currentinterest income is RMB909,869,881.32 in total; Wuliangye Group Finance discounted bank acceptance notes ofRMB860,000,000.00 for the Company during the current period (annual interest rate for discounting: 1.85%;paid interest for discounting: RMB6,417,986.25; undue bank acceptance notes as at 31 December 2022:
RMB581,000,000.00); and Wuliangye Group Finance issued bank acceptance notes of RMB12,000,000.00 forthe Company during the current period (all undue as at 31 December 2022).c) Related-party transactions with Yibin City Commercial Bank Co., Ltd.The total deposits of the Company with Yibin City Commercial Bank Co., Ltd. was RMB4,819,054,254.00at the end of the period; the current interest income is RMB33,498,295.65 in total; Yibin City Commercial BankCo., Ltd. issued bank acceptance notes of RMB240,678,000.00 for the Company during the current period(undue bank acceptance notes as at 31 December 2022: RMB110,758,000.00).
6. Amounts due from and to related parties
(1) Amounts due from related parties
Unit: RMB
Item | Related party | Closing balance | Opening balance | ||
Gross amount | Allowance for doubtful account | Gross amount | Allowance for doubtful account | ||
Account receivable | Sichuan Putian Packaging Co., Ltd. | 9,704,093.72 | 12,850,871.27 | ||
Account receivable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 2,274,390.13 | 2,735,249.77 | ||
Account receivable | Yibin Grace Fiber Industry Co., Ltd. | 1,667,887.25 | |||
Account receivable | Yibin Tianyi New Material Technology Co., Ltd. | 405,925.33 | |||
Account receivable | Yibin Puyi Automobile Technology Co., Ltd. | 260,687.92 | |||
Account receivable | Yi Bin Jia Mei Smartpackaging Co., Ltd. | 254,828.61 | 57,854.06 | ||
Account receivable | Sichuan Linhu Tea Industry Co., Ltd. | 223,910.00 | |||
Account receivable | Anji Logistic Group Co., Ltd. Sichuan | 203,114.35 | |||
Account receivable | Yibin Paper Industry Co., Ltd. | 167,965.83 | |||
Account receivable | Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | 150,855.82 | |||
Account receivable | Sichuan Shuzhan New Materials Co., Ltd. | 134,578.48 | |||
Account receivable | Sichuan Yibin Push Auto Parts Co., Ltd. | 98,059.08 | 129,813.03 | ||
Account receivable | Wuming Tea Industry Holding Co., Ltd. | 82,148.00 | |||
Account receivable | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | 72,069.00 | |||
Account receivable | Sichuan Nongwu E-commerce Co., Ltd. | 46,800.00 | |||
Account receivable | Chengdu Push Medical Plastics Packaging Co., Ltd. | 3,838,157.14 | |||
Account receivable | WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | 268,000.00 | |||
Account receivable | Yibin Chuanhong Tea Group Co., Ltd. | 84,455.50 |
Prepayment | Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | 18,900,000.00 | |||
Prepayment | Anji Logistic Group Co., Ltd. Sichuan | 827,429.00 | 827,429.00 | ||
Prepayment | Yibin An Shi Ji Auto Service Co., Ltd. | 238,939.83 | 4,528.59 | ||
Prepayment | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 155,255.03 | |||
Prepayment | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 30,000.00 | |||
Prepayment | Wuming Tea Industry Holding Co., Ltd. | 7,245.00 | 1,560,000.00 | ||
Prepayment | Sichuan Yibin Push Group Co., Ltd. | 24,826,236.07 | |||
Prepayment | Chengdu Push Medical Plastics Packaging Co., Ltd. | 4,713,700.00 | |||
Prepayment | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 1,761,061.95 | |||
Monetary assets | Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 666,921,754.74 | 510,174,463.27 | ||
Monetary assets | Yibin City Commercial Bank Co., Ltd. | 10,804,085.47 | |||
Other receivable | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | 381,300.00 | |||
Other receivable | Sichuan Putian Packaging Co., Ltd. | 260,000.00 | 260,000.00 | ||
Other receivable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 200,000.00 | 200,000.00 | ||
Other receivable | Anji Logistic Group Co., Ltd. Sichuan | 160,000.00 | 130,000.00 | ||
Other receivable | Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | 132,127.55 | |||
Other receivable | Yibin Wuliangye Ecological Brewing Co., Ltd. | 122,727.27 | 122,727.27 | ||
Other receivable | Sichuan Linhu Tea Industry Co., Ltd. | 69,000.00 | 45,000.00 | ||
Other receivable | Sichuan Yibin Wuliangye Group Co., Ltd. | 56,200.00 | |||
Other receivable | Sichuan Shuzhan New Materials Co., Ltd. | 15,000.00 | 15,000.00 | ||
Other receivable | Sichuan Yibin Push Auto Parts Co., Ltd. | 5,000.00 | |||
Other receivable | Sichuan Nongwu E-commerce Co., Ltd. | 2,000.00 |
The amounts related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. and Yibin City CommercialBank Co., Ltd. in this table represented the interest on time deposits accrued on an accrual basis, and the closingbalances were presented in monetary assets.
(2) Amounts due to related parties
Unit: RMB
Item | Related party | Closing gross amount | Opening gross amount |
Account payable | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 4,376,392.22 | 7,598,386.93 |
Account payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 1,026,904.56 | 169,087.50 |
Account payable | Chengdu Huayu Glass Manufacturing Co., Ltd. | 723,458.44 | 897,056.30 |
Account payable | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | 626,849.99 | 1,178,214.10 |
Account payable | Yibin Push Assets Management Co., Ltd. | 313,182.65 | |
Account payable | Yibin Global Energy Conservation Service Co., Ltd. | 239,674.59 | |
Account payable | Sichuan Global Insulator Co., Ltd. | 209,728.58 | |
Account payable | Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | 91,585.00 | |
Account payable | Sichuan Putian Packaging Co., Ltd. | 37,096.80 | 37,096.80 |
Account payable | Wuming Tea Industry Holding Co., Ltd. | 35,588.80 | |
Account payable | Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | 11,035.00 | |
Account payable | Sichuan Yibin Push Group Co., Ltd. | 6,385,676.78 | |
Account payable | Yi Bin Jia Mei Smartpackaging Co., Ltd. | 4,050,000.00 | |
Account payable | Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | 539,522.98 | |
Account payable | Anji Logistic Group Co., Ltd. Sichuan | 405,066.80 | |
Account payable | Yibin An Shi Ji International Logistics Co., Ltd. | 73,959.23 | |
Account payable | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 4,788.00 | |
Account payable | Sichuan Huansheng Pharmacy Co., Ltd. | 1,310.05 | |
Advance from customer | WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | 17,142.89 | |
Contract liability | Yibin Wuliangye Group I&E Co., Ltd. | 445,542,725.66 | 371,681.42 |
Contract liability | Yibin Jinlong Trade Development Co., Ltd. | 59,426,283.57 | |
Contract liability | Yibin Xianghe Aviation Service Co., Ltd. | 33,329,766.37 | |
Contract liability | Sichuan Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. | 1,732,228.75 | |
Contract liability | Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | 1,536,665.16 | 17,410,387.61 |
Contract liability | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 1,020,748.11 | 959,477.88 |
Contract liability | Sichuan Shuzhan New Materials Co., Ltd. | 709,442.48 | 524,403.54 |
Contract liability | Yibin Wuliangye Ecological Brewing Co., Ltd. | 675,562.97 | 675,562.97 |
Contract liability | Sichuan An Shi Ji Supply Chain Management Co., Ltd. | 453,916.81 | 211,498.23 |
Contract liability | Sichuan Nongwu E-commerce Co., Ltd. | 453,537.40 | 741,808.36 |
Contract liability | Yibin Development Holding Group Co., Ltd. | 369,000.00 | 326,548.67 |
Contract liability | Yibin Jinxilai Changxin Industry Co., Ltd. | 214,099.77 | |
Contract liability | Yi Bin Jia Mei Smartpackaging Co., Ltd. | 120,325.42 | |
Contract | Sichuan Yibin Push Auto Parts Co., Ltd. | 81,505.00 |
liability | |||
Contract liability | Anji Logistic Group Co., Ltd. Sichuan | 50,286.24 | 16,579.99 |
Contract liability | WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan | 39,292.04 | |
Contract liability | Sichuan Yibin Licai Group Co., Ltd. | 35,745.13 | |
Contract liability | Yibin City Commercial Bank Co., Ltd. | 15,313.27 | |
Contract liability | Wuming Tea Industry Holding Co., Ltd. | 9,000.00 | |
Contract liability | Sichuan Tyre and Rubber Co., Ltd. | 230.09 | |
Contract liability | Yibin Lingang Business Service Co., Ltd. | 53.10 | |
Contract liability | Sichuan Yibin Push International Co., Ltd. | 1,435,659.19 | |
Contract liability | Yibin An Shi Ji International Logistics Co., Ltd. | 184,290.39 | |
Contract liability | Sichuan Putian Packaging Co., Ltd. | 112,938.05 | |
Contract liability | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | 892.04 | |
Note payable | Yi Bin Jia Mei Smartpackaging Co., Ltd. | 9,190,015.55 | |
Note payable | Sichuan Putian Packaging Co., Ltd. | 70,000.00 | |
Other payable | Yibin Chuanhong Tea Group Co., Ltd. | 3,206,818.98 | |
Other payable | Sichuan Yibin Push Intelligent Technology Co., Ltd. | 2,356,447.86 | 1,674,898.82 |
Other payable | Anji Logistic Group Co., Ltd. Sichuan | 1,615,588.00 | |
Other payable | Sacred Mountain Molin Group Co., Ltd. Si Chuan | 1,315,988.00 | 440,254.40 |
Other payable | Push Information & Automation (Chengdu) Co., Ltd. | 1,313,400.40 | 1,356,900.44 |
Other payable | Yibin An Shi Ji Auto Service Co., Ltd. | 872,925.00 | 20,000.00 |
Other payable | Sichuan Putian Packaging Co., Ltd. | 712,872.00 | 1,838,478.00 |
Other payable | Yibin Wuliangye Fund Management Co., Ltd. | 534,000.00 | |
Other payable | Chengdu Push Medical Plastics Packaging Co., Ltd. | 217,761.64 | 217,761.64 |
Other payable | Yibin Jinxiuyuan Landscaping Co., Ltd. | 210,778.80 | |
Other payable | Sichuan Nongwu E-commerce Co., Ltd. | 200,000.00 | 100,000.00 |
Other payable | Sichuan Gloport Investment and Development Group Co., Ltd. | 194,572.40 | |
Other payable | Yibin An Shi Ji International Logistics Co., Ltd. | 150,000.00 | 731,184.30 |
Other payable | Yibin Xianghe Aviation Service Co., Ltd. | 150,000.00 | |
Other payable | Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. | 137,790.43 | 137,790.43 |
Other payable | Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. | 100,000.00 | 111,500.00 |
Other payable | Yi Bin Jia Mei Smartpackaging Co., Ltd. | 60,000.00 | 60,000.00 |
Other payable | Yibin Global Photoelectric Energy Conservation Technology Co., Ltd. | 50,004.21 | 5,040.84 |
Other payable | Sichuan Yibin Push Building Materials Co., Ltd. | 50,000.00 | 50,000.00 |
Other payable | Yibin Development Holding Group Co., Ltd. | 50,000.00 | 50,000.00 |
Other payable | Sichuan Tyre and Rubber Co., Ltd. | 50,000.00 | 50,000.00 |
Other payable | Yibin Tianchang Logistics Co., Ltd. | 50,000.00 |
Other payable | Cowin Automobile Co., Ltd. | 50,000.00 | |
Other payable | Yibin Global Energy Conservation Service Co., Ltd. | 49,000.00 | 49,000.00 |
Other payable | Yibin Jinlong Trade Development Co., Ltd. | 30,000.00 | |
Other payable | Sichuan Yibin Global Group Tianwo Trade Co., Ltd. | 20,000.00 | 20,000.00 |
Other payable | Wuming Tea Industry Holding Co., Ltd. | 20,000.00 | 20,000.00 |
Other payable | Chongqing PUSH POWER Technology Co., Ltd. | 18,920.00 | |
Other payable | Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan | 9,200.00 | |
Other payable | Yibin Jindun Security Service Co., Ltd. | 6,000.00 | |
Other payable | Yibin Grace Mechanical and Electrical Engineering Co., Ltd. | 5,000.00 | |
Other payable | Yibin Changsheng Engineering Management Co., Ltd. | 2,000.00 | |
Other payable | Yibin Push Linko Technology Co., Ltd. | 166,531.03 | |
Other payable | Yibin Push Assets Management Co., Ltd. | 85,204.00 | |
Other payable | Sichuan Linhu Tea Industry Co., Ltd. | 10,000.00 | |
Other payable | Sichuan Shuzhan New Materials Co., Ltd. | 3,000.00 | |
Other payable | Sichuan Andaxin Logistics Co., Ltd. | 1,000.00 |
XII Undertakings and Contingencies
1. Significant undertakings
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
2. Contingencies
The Company had no significant contingencies which needed to be disclosed during the Reporting Period.XIII Post-Balance Sheet Date Events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
2. Profit distribution
As resolved by the 4th Meeting in 2023 of the 6th Board of Directors of the Company held on 27 April2023, the final dividend plan for 2022 is: a cash dividend of RMB37.82 (tax inclusive) per 10 shares should bedistributed to shareholders, with no bonus issue from capital reserves. This plan shall be subject to the approvalof a general meeting of shareholders.
3. Note on other post-balance sheet date events
The Company has no other post-balance sheet date events which need to be disclosed.XIV Other Significant Matters
1. Annuity plan
The Company obtained the reply of the State-owned Assets Supervision and Administration Commission ofthe People’s Government of Yibin City on the Plan of Establishing the Corporate Annuity Plan of the Company(YGZW [2018] No. 221) on 14 September 2018, and had filed with the Department of Human Resources andSocial Security of Sichuan Province on 30 October 2018.
Participants of the corporate annuity plan of the Company include: (1) Employees who have entered intolabor contracts with the Company; (2) employees who participate in the basic old-age insurance system forenterprise employees according to the law and perform the obligation of payment; and (3) employees who are onduty and registered (excluding the probation period) will participate the corporate pension plan on a voluntarybasis.
Expenses for the corporate annuities shall be shared by the Company and the employees. Contribution by anemployee shall be 3% of the contribution base of such employee, and the monthly contribution base of the
employee shall be the average wage in the previous year. Total amount of contribution by the Company shall be5% of the total annual wage paid by the Company, which shall be distributed to individual accounts of theemployees at 3% of the contribution base of the employees, while the remaining 2% shall be distributed to thecorporate account as incentives for rewarding personnel who make significant contributions to the Company andfor redistribution to employees of the Company.
2. Segment information
The Company has no other businesses than liquor products which have significant impact on the operatingresult. The Company has no segment information that needs to be disclosed since revenue of the Company ismainly generated within China and the assets are also located within China.XV Notes to Major Line Items in the Financial Statements of the Company as the Parent
1. Other receivables
Unit: RMB
Item | Closing balance | Opening balance |
Dividends receivable | 2,126,718,123.00 | 1,153,154,780.16 |
Other receivables | 6,335,913,181.66 | 6,674,621,403.75 |
Total | 8,462,631,304.66 | 7,827,776,183.91 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item (or investee) | Closing balance | Opening balance |
Dividends receivable from subsidiaries | 2,126,718,123.00 | 1,153,154,780.16 |
Total | 2,126,718,123.00 | 1,153,154,780.16 |
2) Allowances for doubtful accounts
□ Applicable ? Not applicable
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature | Closing gross amount | Opening gross amount |
Current account | 6,333,318,770.49 | 6,671,120,101.42 |
Security deposits | 5,000,000.00 | 5,000,000.00 |
Cash float | 101,301.29 | 5,202.65 |
Total | 6,338,420,071.78 | 6,676,125,304.07 |
2) Allowances for doubtful accounts
Unit: RMB
Allowances for doubtful accounts | Stage 1 | Stage 2 | Stage 3 | Total |
12-month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
Balance as at 1 January 2022 | 1,503,900.32 | 1,503,900.32 | ||
Balance as at 1 January 2022 was in the current period | ||||
- Transferred to Stage 2 |
- Transferred to Stage 3 | ||||
- Transferred back to Stage 2 | ||||
- Transferred back to Stage 1 | ||||
Established in the current period | 1,002,989.80 | 1,002,989.80 | ||
Reversed in the current period | ||||
Charged off in the current period | ||||
Written off in the current period | ||||
Other changes | ||||
Balance as at 31 December 2022 | 2,506,890.12 | 2,506,890.12 |
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
Other receivables presented by aging:
Unit: RMB
Aging | Gross amount |
Within 1 year (inclusive) | 4,118,461,478.12 |
1 to 2 years | 213,939,106.11 |
2 to 3 years | 150,484,231.55 |
More than 3 years | 1,855,535,256.00 |
3 to 4 years | 102,537,494.25 |
4 to 5 years | 126,271,655.92 |
More than 5 years | 1,626,726,105.83 |
Total | 6,338,420,071.78 |
3) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
Category | Opening balance | Changes in the current period | Closing balance | |||
Established | Recovered or reversed | Written off | Others | |||
Other receivables for which allowances for doubtful accounts are established on an individual basis | ||||||
Other receivables for which allowances for doubtful accounts are established based on the credit risk chacteristic group | 1,503,900.32 | 1,002,989.80 | 2,506,890.12 | |||
Total | 1,503,900.32 | 1,002,989.80 | 2,506,890.12 |
4) Other receivables actually written off in the current period
The Company as the parent had no other receivables actually written off in the Reporting Period.
5) Top five entities with respect to other receivables
Unit: RMB
Entity | Nature of account | Closing balance | Aging | As % of the closing balance of total other receivables | Closing balance of allowances for doubtful accounts |
Sichuan Yibin Wuliangye Distillery Co., Ltd. | Current account | 3,992,817,736.97 | Within 1year | 62.99% | |
Yibin Jiangjiu Liquor Co., Ltd. | Current account | 2,030,221,667.91 | 1-5 years; more than 5 years | 32.03% | |
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | Current account | 181,069,526.20 | Within 2 years; more than 5 years | 2.86% | |
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | Current account | 129,206,278.05 | More than 5 years | 2.04% | |
Housing and Urban-Rural Development Bureau of Cuiping District, Yibin City | Security deposit | 5,000,000.00 | 4-5 years | 0.08% | 2,500,000.00 |
Total | 6,338,315,209.13 | 100.00% | 2,500,000.00 |
2. Long-term equity investments
Unit: RMB
Item | Closing balance | Opening balance | ||||
Gross amount | Impairment allowances | Carrying amount | Gross amount | Impairment allowances | Carrying amount | |
Investments in subsidiaries | 11,416,902,138.11 | 11,416,902,138.11 | 11,416,902,138.11 | 11,416,902,138.11 | ||
Investments in associates and joint ventures | 1,966,914,053.94 | 1,966,914,053.94 | 1,896,707,464.47 | 1,896,707,464.47 | ||
Total | 13,383,816,192.05 | 13,383,816,192.05 | 13,313,609,602.58 | 13,313,609,602.58 |
(1) Investments in subsidiaries
Unit: RMB
Investee | Opening balance (carrying amount) | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | |||
Increase in investment | Decrease in investment | Impairment allowance | Others | ||||
Sichuan Yibin Wuliangye Distillery Co., Ltd. | 5,069,784,707.36 | 5,069,784,707.36 | |||||
Yibin Wuliangye Liquor Sales Co., Ltd. | 190,000,000.00 | 190,000,000.00 |
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. | 765,756,006.41 | 765,756,006.41 | |||||
Yibin Jiangjiu Liquor Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. | 18,870,000.00 | 18,870,000.00 | |||||
Yibin Changjiangyuan Liquor Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. | 2,700,000.00 | 2,700,000.00 | |||||
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. | 49,374,409.93 | 49,374,409.93 | |||||
Sichuan Yibin Plastic Packaging Materials Company Limited | 3,443,149,609.25 | 3,443,149,609.25 | |||||
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. | 108,922,175.18 | 108,922,175.18 | |||||
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. | 307,282,551.14 | 307,282,551.14 | |||||
Sichuan Yibin Push Group 3D Co., Ltd. | 240,419,229.32 | 240,419,229.32 | |||||
Sichuan Yibin Wuliangye Investment (Consulting) Co., Ltd. | 47,500,000.00 | 47,500,000.00 | |||||
Wuliangye Dashijie (Beijing) Trade Co., Ltd. | 323,000,000.00 | 323,000,000.00 | |||||
Handan Yongbufenli Liquor Co., Ltd. | 255,000,000.00 | 255,000,000.00 | |||||
Huaibin Wubin Consultation Service Co., Ltd. | 199,675,708.13 | 199,675,708.13 | |||||
Wuguchun Jiu Ye Co., Henan. China | 55,467,741.39 | 55,467,741.39 | |||||
Sichuan Wuliangye Culture Tourism Development Co., Ltd. | 40,000,000.00 | 40,000,000.00 | |||||
Yibin Wuliangye Creart Co., Ltd. | 45,000,000.00 | 45,000,000.00 | |||||
Sichuan Wuliangye NongXiang Baijiu Co., Ltd. | 95,000,000.00 | 95,000,000.00 | |||||
Sichuan Wuliangye New Retail Management Co., Ltd. | 90,000,000.00 | 90,000,000.00 | |||||
Total | 11,416,902,138.11 | 11,416,902,138.11 |
(2) Investment in associates and joint ventures
Unit: RMB
Investee | Opening balance (carrying amount) | Increase/decrease in the current period | Closing balance (carrying amount) | Closing balance of impairment allowance | |||||||
Increase in investment | Decrease in investment | Return on investment recognized using the equity method | Adjustment to other comprehensive income | Other equity changes | Declared cash dividends or profit | Impairment allowance | Others | ||||
I Joint ventures | |||||||||||
II Associates | |||||||||||
Oriental Outlook Media Co., Ltd. | 25,565,938.31 | 563,199.61 | 26,129,137.92 | ||||||||
Sichuan Yibin Wuliangye Group Finance Co., Ltd. | 1,865,633,396.55 | 87,543,010.97 | 23,038,080.00 | 1,930,138,327.52 |
Beijing Zhongjiuhuicui Education and Technology Co., Ltd. | 5,508,129.61 | 5,625,000.00 | -486,541.11 | 10,646,588.50 | |||||||
Sub-total | 1,896,707,464.47 | 5,625,000.00 | 87,619,669.47 | 23,038,080.00 | 1,966,914,053.94 | ||||||
Total | 1,896,707,464.47 | 5,625,000.00 | 87,619,669.47 | 23,038,080.00 | 1,966,914,053.94 |
3. Operating revenue and cost of sales
Unit: RMB
Item | 2022 | 2021 | ||
Revenue | Cost | Revenue | Cost | |
Other operations | 6,072.98 | 3,997.51 | ||
Total | 6,072.98 | 3,997.51 |
4. Return on investment
Unit: RMB
Item | 2022 | 2021 |
Return on long-term equity investments measured using the cost method | 18,712,159,587.02 | 17,889,486,279.68 |
Return on long-term equity investments measured using the equity method | 87,619,669.47 | 94,286,122.75 |
Income from the disposal of long-term equity investments | 2,323,848.26 | |
Total | 18,799,779,256.49 | 17,986,096,250.69 |
XVI Supplementary Information
1. Schedule of current exceptional gains and losses
? Applicable □ Not applicable
Unit: RMB
Item | Amount | Note |
Gain or loss on disposal of non-current assets | 2,282,237.38 | |
Government grants through profit or loss (exclusive of government grants consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per governmental policies or standards) | 100,421,839.81 | |
Capital occupation charges on non-financial enterprises that are recognized in profit or loss | 442,730.22 | |
Non-operating income and expense other than the above | -62,917,173.08 | |
Less: Income tax effects | 8,377,774.30 | |
Non-controlling interests effects | 3,927,171.59 | |
Total | 27,924,688.44 | -- |
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Profit in the Reporting Period | Weighted average ROE (%) | EPS | |
Basic EPS (RMB/share) | Diluted EPS (RMB/share) | ||
Net profit attributable to the Company’s ordinary shareholders | 25.28% | 6.876 | 6.876 |
Net profit attributable to the Company’s ordinary shareholders before exceptional gains and losses | 25.26% | 6.869 | 6.869 |
3. Accounting data differences under China’s Accounting Standards for Business Enterprises (CAS) andInternational Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable ? Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable ? Not applicable
(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where anyreconciliation is made to the data audited by an overseas independent auditor, the name of the overseasindependent auditor shall be provided.None.