Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
Appendix
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai0201
2024 Environmental,Social and Governance Report0102
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai04032024 Environmental,Social and Governance Report
About the Report
This Report covers Kweichow Moutai Co., Ltd. and its affiliated organizations. To facilitate presentation, "Kweichow MoutaiCo., Ltd". is referred to as "Kweichow Moutai", "Moutai", the "Company", "we", or "us", while our controlling shareholder, ChinaKweichow Moutai (Group) Co., Ltd., is referred to as "Moutai Group" in this Report.
All nancial data herein are derived from the 2024 Annual Report of Kweichow Moutai Co., Ltd., while all other information anddata are sourced from our relevant statistics. The bookkeeping base currency for all monetary amounts involved is RMB.
This Report is prepared in accordance with Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of ListedCompanies - Sustainability Report (Trial) and Guidelines No.4 for Self-Regulatory Supervision on Listed Companies of ShanghaiStock Exchange - Compilation of Sustainable Development Reports (Draft for Comment) issued by the Shanghai StockExchange. It also references the GRI Sustainability Reporting Standards (GRI Standards) issued by the Global SustainabilityStandards Board (GSSB) and Sustainable Development Goals (SDGs).
This Report is an annual report and represents the fourth Environmental, Social, and Governance (ESG) Report published byKweichow Moutai.
This Report is available in both Chinese and English. In case of any discrepancy in understanding the content, the Chineseversion shall prevail.
This Report is available in both print and electronic formats. For more information on Kweichow Moutai's ESG performance or todownload the electronic version of this Report, please visit the following websites.
O?cial website of Kweichow Moutai: https://www.moutaichina.com/O?cial website of Shanghai Stock Exchange: https://english.sse.com.cn/
This Report covers the period from January 1 to December 31, 2024, with part of the content tracing back to previous years asnecessary to ensure continuity of information.
Organization
Reporting Period
Publication Interval
Statement
Language
Compilatory Basis
How to Obtain
0605About the ReportMessage from
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SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Message from the Chairman
Seeking mutual success, we optimize governance for long-term value. We are committed to upholding integrity whiledriving innovation, and continuously advancing the in-depthreform of state-owned enterprises. By focusing on strategy,budgeting, processes, performance, and risk management,we have established a robust modern corporate governanceframework, achieving new milestones in the modernizationof Moutai's corporate governance. We consistentlyintegrate world-class management methodologies such asExcellence Performance and EFQM Model, strengtheningcultural leadership, organizational support, and oversightmechanisms to enhance governance capabilities. As aresult, Moutai became the rst Chinese company to receivethe "Seven Diamonds" distinction under the new EFQMExcellence Model. Advancing the "Smart Moutai 2.0"initiative, we are building a solid digital foundation acrossthe entire industrial chain. Key areas and critical processesare closely monitored with regular compliance, risk, andsafety assessments. We continuously refine our ESGgovernance structure, improve ESG metrics, and enhance
Chairman of Kweichow Moutai Co., Ltd.
a series of the "China Moutai, Backbone of the Nation"public welfare activities, donated a total of approximatelyRMB170 million and inspired our partners to donate overRMB 50 million. Moreover, we steadfastly fulfill our brandresponsibilities by supporting events like the Third SynBioChallenges, upholding responsible marketing practices, andpromoting responsible drinking.With the morning star as our guide, we set sail intouncharted waters with ambitions soaring like a roc. As 2025marks the final year of China's 14th Five-Year Plan, it isalso a pivotal "Year of Solidifying Foundations" for Moutai.We will steadfastly follow the path charted by President XiJinping, upholding our craftsmanship in pursuit of excellencewhile embracing innovation to shape the future. Anchored inour core corporate values of "follow the nature and respectthe man, seek truths and cultivate virtues", and drivenby our mission to craft a high-quality life, we will intensifyour ESG efforts across environmental stewardship, socialresponsibility, and corporate governance. Hand in hand withour shareholders, consumers, partners, and the broadercommunity, we will advance symbiotic coexistence, sharedbenefits, and mutual success, contributing more Moutai'sstrength to the harmonious development of the economy,society, and environment.
Guided by our aspirations and with unwavering e?orts, weembraced 2024 as a groundbreaking year of determinedexploration and pioneering progress. Amidst economicdriver transformation, in-depth industry adjustments, andmounting market pressures, we remained steadfast inour direction, aligning our efforts with Xi Jinping Thoughton Socialism with Chinese Characteristics for a New Era.We have thoroughly studied and implemented the guidingprinciples of the 20th National Congress of the CommunistParty of China, along with the resolutions of its Secondand Third Plenary Sessions. Inspired by President XiJinping's key remarks during his visit to Guizhou, we havefully executed the strategic decisions of the CPC provincialcommittee, provincial people's government, and State-owned Assets Supervision and Administration Commission.Embracing the principles of innovative, coordinated, green,open, and shared development, we actively integrated intoand contributed to the evolving economic landscape. Rootedin our core corporate values of "Follow the Nature andRespect the Man, Seek Truths and Cultivate Virtues", wehave deeply embedded the ESG philosophy of "SymbioticCoexistence, Sharing Benefits, and Mutual Success" intoour operations, driving Moutai's high-quality developmentand modernization forward.
disclosure mechanisms to elevate ESG performance.Guided by a long-term vision, we are steering the Companytoward sustainable growth.Embracing symbiotic coexistence, we embark on greendevelopment for more ecological value. Guided by theprinciple that "lucid waters and lush mountains areinvaluable assets,", we prioritize ecological preservation andsustainable growth. We have established an environmentalprotection map and intensified the adoption and R&D ofnew technologies and processes while enhancing theintegrated environmental monitoring network. Focusingon "energy efficiency, carbon reduction, emission control,and productivity enhancement", we have implemented asystematic strategic approach, forging an innovation-drivenpath toward carbon peak and neutrality. Our water recyclingrate exceeded 87%, and air quality excellence in ourfacilities surpassed 98%. We continuously conduct scienticresearch on microorganisms, aquatic life, and vegetation inthe watershed, safeguarding its biodiversity and ecologicalstability. By optimizing water resource management in theChishui River Basin, we strengthen its ecological protection.Advancing the "green transformation" of packagingmaterials, we leverage cutting-edge technologies to boostproject efficiency and drive the utilization of byproducts.All distilling byproducts, rice straw, pit mud, and distiller'sgrains, are 100% recycled, with solid and hazardous wastedisposal compliance reaching 100%. Our efforts haveearned us national "Green Factory" titles.Striving for shared benets, we share our achievements forconnected societal value. Born in the mountains, Moutaicarries a responsibility and commitment as steadfast asthe peaks themselves. In recent years, we have vigorouslyadvanced initiatives in occupational health, training, andeducation of employees, strengthened protections fortheir rights and interests, prioritized their well-being, andenhanced their sense of fulllment, happiness, and worth,unlocking their potential to the fullest. We pay stablecash dividends and has launched the first share buybackprogram, and maintained close communication withinvestors, aligning our interests with shareholders. Togetherwith our partners, we have explored new approaches tosupply chain operations and collaborated on innovativemarket development strategies. We continuously conducted
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Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAbout
Kweichow Moutai2024 Environmental,Social and Governance ReportAbout Kweichow Moutai
Company ProleKweichow Moutai Co., Ltd. (stock code: 600519) was incorporated in November 1999 and was listed on the ShanghaiStock Exchange in 2001. Headquartered in Moutai Town along the stunning banks of the Chishui River in northernGuizhou Province, Moutai is mainly engaged in the production and sales of Moutai Baijiu and Moutai series baijiu. Thecore product, Kweichow Moutai Baijiu, is the originator and indisputable representative of Daqu Jiang-flavor baijiu inChina. The product is a National Geographical Indication Product with EU-China Landmark Geographical Indication,organic food, and national intangible cultural heritage. The marketing network extending across China and to 64countries and regions on five continents, it is a Chinese business card that brings the fragrance of baijiu to the world.Kweichow Moutai, guided by the mission of "Distilling a High-QualityLife", has continuously expanded its scope from offering exceptional
liquor to providing diverse life experiences, from crafting fine spiritsto building a more comprehensive industrial ecosystem, and from theChishui River Valley to broader domestic and international markets.We remain committed to creating high-quality, efficient value as ourunwavering pursuit, embedding excellence into every aspect of ourproduction, operations, and management. This commitment ensuresa high-quality experience for our customers, growth opportunities forour employees, excellent returns for our shareholders, mutual successfor our partners, and significant progress for society. We aim to leadthe construction of a modern industrial system and play a pivotal rolein driving high-quality development across society. We aim to makethe world fall in love with Moutai and spread its fragrance globally. Our
goal is to build rst-class product quality, a world-class brand image, aleading industrial system, a top-tier governance structure, and cutting-edge innovation capabilities. We strive to make Moutai a a world-class product with wide influence and leading competitiveness, brandprestige, innovation leadership, and modern governance, establishingit as a globally influential and competitive brand. Our goal is to makethe world recognize, love, and favor Kweichow Moutai, allowing itsfragrance, imbued with the rich heritage of Chinese culture, to becomea bridge that connects different civilizations and shares the beauty oflife. Embarking on the path of greatness together, we pursue beautyin harmony. Prioritizing ecology and pursuing green development, webalance progress with protection, creating a distilling environment wherethe skies are bluer, the waters greener, and the mountains lusher. Wehave fostered production-living-ecological spaces featuring e?cient andcompact production areas, pristine and scenic ecological spaces, andlow-carbon, green living environments. By forging a path where high-quality economic development and the preservation of green mountainsand clear waters go hand in hand, we are contributing more to theconstruction of a beautiful China through Kweichow Moutai's efforts.Kweichow Moutai achieved a total revenue of RMB 174.144 billion and anet prot attributable to shareholders of RMB 86.228 billion in 2024. TheCompany ranked rst in the "Top 50 Global Most Valuable Spirits Brandsof Brand Finance" for nine consecutive years, and ranked second in the"BrandZ Top 100 Most Valuable Chinese Brands" with a brand value ofUSD 87.298 billion, making it the most valuable alcoholic beverage brandin China.
Kweichow Moutai achieved a totalrevenue ofRMB
174.144
billion
The marketing network extendingacross China and to
countriesand regions on ve continents
A net prot attributable toshareholders ofRMB
86.228
billion
0807
Corporate Culture
Mission
Distilling a high-quality life
Devoting toMoutai andwinning glory forthe motherland
China Moutai, A Toast to the World
Aromatic Product,PersistentIntegrity, andHarmoniousCommunity
Corecompetitiveness
Vision
Qualityphilosophy
Corporate
spiritCorporate
styles
Quality, Brand, Craftsmanship,Environment, CultureQuality is the soul of life
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
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Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
We brew with a benevolent heart, use genuine materials, act sincerely, andproduce authentic products.
Core Corporate Values: "Follow the Nature and Respect the Man,Seek Truths and Cultivate Virtues"Born in the mountains, Moutai is destined to have responsibilities and commitments like the mountains. We keep in tune with thetimes, follow seasonal laws, adhere to the laws of time, respond to the trends of the times, and protect ecological vitality; adhereto co-creation and sharing, respect the predecessors and sages, respect the spirit of craftsmanship, and respect the interestsand values of stakeholders; adhere to careful thinking and diligent practice, understand public laws, understand personalintegrity, and understand principles of action; brew with a benevolent heart, develop self through virtue cultivation, ensure qualitythrough virtue cultivation, and establish business through virtue cultivation.
We are adept at seizing opportunities,developing new productive forces,making traditions more traditionaland innovations more modern, andprogressing in the balance betweeninheritance and innovation.
We protect natural ecology, cultivateecology, and promote businessecology, driving sustainable andhigh-quality development.
We adapt to the right timing, leveragegeographical advantages, and strictlyfollow the "Twenty-Four Solar Terms"in production operations to achieveco-distilling by man and nature.
Followseasonal laws
We follow the ve major technologicalprocesses, 30 processes, and 165technological procedures, enduringthe test of time and renement.
Adhere to the
laws of time
Respond to thetrends of the times
Protectecological vitality
We comply with laws and regulations,maintain integrity in professional con-duct, and jointly create an atmosphereof integrity and fairness.
We uphold mindfulness, walk the rightpath, do the right things, and seek theright outcomes; we act with reason andmoderation, stay true to the originalaspiration, be fair and impartial, speakcautiously and act thoughtfully, andtake active actions.
Respect craftsmanshipRespect the stakeholdersRespect predecessors
We promote excellent traditional virtues and adhere to businessethics. We are concerned about the family and country, do goodfor others, and improve ourselves.
We seek truth, understand principles,speak reason, and uphold justice; weare humble in conduct, treat otherswith humility, accept advice readily,and engage in lifelong learning.
We treat the market with reverence, treat customers with sincerity, treat employees with care, treatdistributors with respect, treat partners with trust, treat shareholders with gratitude, treat competitorswith fairness, and treat ourselves with self-discipline.
Developself throughvirtuecultivationEnsurequalitythroughvirtuecultivationEstablishbusinessthrough virtuecultivation
Understandpublic laws
Understand
personalintegrity
Understandtheprinciples ofaction
We advocate the spiritof craftsmanship,respect innovation andcreation, strengthencorporate practices,and integrate the spiritof craftsmanship intothe entire process ofcorporate productionand operation.
We remember thehistorical achievementsof predecessors andprotect and promotetheir wisdom andspiritual heritage.
We respect customers,shareholders, partners,and peers, and build acommunity of sharedemotions, a communityof shared destiny, anda community of sharedinterests, creating andsharing, and achievingbeauty together.
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Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Some of Kweichow Moutai's Awards in 2024
Table of Kweichow Moutai's Awards in 2024
EFQM Global Award (Seven Diamonds)and Outstanding Achievement for an
Inspiring CultureEuropean Foundation for Quality Management
National Green Factory
Ministry of Industry and Information Technology
Top 100 China ESG ListedCompanies Pioneers (2024)
China Media GroupMSCI
MSCI ESG Rating: BBB (2023)
Top 50 Global Most Valuable Spirits Brands ofBrand Finance, Ranked No.1 Among SpiritsBrands for Nine Consecutive Years
Brand Finance
BrandZ Top 100 Most Valuable Chinese Brands,Ranked No.1 Among Alcohol Brands for Seven
Consecutive Years
Kantar
Wind ESG Rating: A – Wind
Wind
2023 China Alcohol Industry AssociationOutstanding Scientic and Technological
Paper AwardChina Alcoholic Drinks Association
2024 Fortune China's MostAdmired Companies, Listed for 19
Consecutive YearsFortune Media Group
A-Level (Excellent) Rating forInformation Disclosure
Shanghai Stock Exchange
First Prize of the China National Food
Industry Association Science and
Technology Award
China National Food Industry Association
Second Prize of the ChinaQuality Technology Award
China Association for Quality
Guizhou Provincial Green Factory
Guizhou Provincial Department ofIndustry and Information Technology
"Annual Excellence Brand Award" and
"Most Investment-Worthy Award"
Stock Star
Han Jiang (Dedicated Heritage) Won the2024 American MUSE Creative Awards
Platinum Winner
IAAOutstanding Organization Award in
the ProvinceGuizhou Provincial State-owned AssetsSupervision and Administration Commission
1413
About the ReportMessage from
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SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportSustainable Development
ESG Management System
Kweichow Moutai integrates ESG concepts deeply into its business management, continuously promoting the construction ofthe ESG management system and enhancing the level of ESG management.
Kweichow Moutai actively builds an ESG management system, which covers governance, strategy, impact assessment, riskopportunity management, and target setting, strengthens compliance operations, optimizes the governance structure, focuseson assessment and monitoring, strengthens risk management, practices ESG concepts across all areas and by all employees.
General O?ce
Board of Directors
EnvironmentalSub-committee
Social Sub-committee
GovernanceSub-committee
Ecology and Environmental
Protection Working Group
Strategic Committee ofthe Board of Directors
Carbon Peak and CarbonNeutrality Working Group
Employee Health ManagementLeadership GroupCommunity Pay-Back
Working Group
Overseas ResponsibilityPerformance Working GroupEcology Co-constructionWorking Group
Privacy and Data Security
Working GroupHigh-Quality DevelopmentWorking Group
Business Integrity Working Group
Governance
The Company has established a three-level (decision-making, management, and execution) ESG governance structure that isinterconnected and clearly denes responsibilities, providing organizational support for the Company's ESG-related work.
StrategyKweichow Moutai integrates ESG concepts into its corporate strategy and adheres to the principles of respecting nature,optimizing governance, and advancing responsibly. It aims for symbiosis, sharing, and mutual success, and explores andcreates new paths and models for ESG development in a comprehensive manner, and promotes the Company's sustainabledevelopment.
Sharedbenets
We enable modern governancewithin the organization, improvecorporate governance levels,optimize the corporate governancestructure, and continuously enhancegovernance e?ectiveness. Whilepursuing our development, weactively share resources andtechnology to assist the developmentof the industrial chain.
MutualsuccessWe share value with society, fullyconsider the rights and interests ofstakeholders such as customers,employees, shareholders, partners,communities, and pursue theharmonious unity of interests for allparties. We comply with businessethics, maintain a favorable businessenvironment, fulll social responsibili-ties, participate in social construction,and promote social progress.
We coexist harmoniously withnature, pursue balance and unityamong people, enterprises, society,and nature, respecting naturallaws, protecting the environment,promoting ecological priority,resource conservation, and low-carbon development, and creatinga beautiful Moutai where humansand nature coexist harmoniously.
Symbioticcoexistence
Impact, Risk, and Opportunity ManagementKweichow Moutai incorporates ESG risk management into the overall risk management process of the Company in accordancewith the requirements of Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - SustainabilityReport (Trial), continuously enhancing the level of ESG risk management to ensure the Company's sustainable development.The Company regularly identies and evaluates various ESG risks that have signicant impacts, establishes a risk responsesystem covering product quality, production safety, climate change response, waste management, etc., and utilizesinformationization and big data tools to establish a risk monitoring process to actively respond to various ESG risks.
Metrics and TargetsKweichow Moutai aligns with the Company's ESG strategic layout, building a set of forward-looking, directional and feasibleindicator system. This system strictly adheres to regulatory standards and presents the Company's goals and initiatives insustainable development in a quantitative form to better guide the Company in its ESG practices.
ESG Promotion Committee O?ce and Special Working Groups: They are responsible for
implementing various ESG specic a?airs.Execution
Level
Board of Directors: As the decision-making body for ESG matters, it leads and is responsible
for the Company's ESG a?airs;
Strategy Committee: It is responsible for guiding and supervising the Company's ESG-
related matters.
ESG Governance Structure
ESG Promotion Committee: Chaired by the General Manager, it is responsible for
coordinating ESG management work;
Environmental Sub-committee, Social Sub-committee, Governance Sub-committee: They
are responsible for reviewing the management and performance of key ESG issues in
various elds.Management
Level
Decision-
MakingLevel
ESG Promotion
Committee
1615About the ReportMessage from
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Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report1615
Mutual Success Enabling ModernGovernance within the Organization
Symbiotic Coexistence CoexistingHarmoniously with Nature
Sharing Benets Sharing Value with Society
●We implemented "one map for one domain", sortingout a total of
systems, including
basic systems,
rst-level systems,
second-level systems, and
third-tier systems.
●We identified a total of
integrity risk points andformulated
preventive measures.
●We conducted
integrity training activities, coveringover34,000employee participants.
●We published
academic papers, of which
wereincluded in SCI.
●We filed
patent applications, with
patentsgranted. The total number of e?ective patents reached
, including
invention patents,
utility modelpatents, and
design patents.
●We maintained microbial strain resources of over8,400strains, and brewed raw material germplasmresources, including
wheat samples and
sorghum samples.
●iMoutai had a total of
73.863
million registered users,an increase of
million compared to last year.
●We formulated the Kweichow Moutai Co., Ltd. ActionPlan for Carbon Peak and Neutrality, clarifying theimplementation route and measures for the dualcarbon strategy.
●We set short, medium, and long-term carbon emissionreduction targets, with the 2025 target being a20%reduction in comprehensive energy consumption perunit of industrial output compared to 2020. Additionally,achieve carbon peak before 2030, with carbonemissions per unit of industrial output value reducedby60% compared to 2020.
●We drafted the industry's first carbon-relatedstandards, Requirements of the GHG EmissionsAccounting and Reporting for Baijiu Enterprise (T/CBJ2206-2024) and Product Carbon Footprint EvaluationSpecication for Baijiu (T/CBJ 2207-2024), which havenow been o?cially released.
●We procured
120.6429
million kilowatt-hours ofgreen electricity, achieving100%coverage of greenpower in the Moutai production area and the Heyixingproduction area.
●The project "Demonstration Research on EnergySaving, E?ciency Improvement, and Carbon ReductionComprehensive Utilization Path of Distillation SystemBased on Carbon Dioxide Heat Pump Technology"has been included in the fth batch of the National KeyPromotion Directory for Low-Carbon Technologies.
●We set water-saving targets, with a short-term goal ofreducing water consumption per unit of product by5%in 2024 compared to 2023, and a medium to long-termgoal of water consumption per unit of product by20%
in 2026 compared to 2023.
●We used the World Wildlife Fund (WWF) Water RiskFilter to conduct water pressure assessments, identifypotential water risks, and take countermeasures.
●In 2024, the Ecological Development Index reached
78.41
points, an increase of
8.9%
year-on-year.
●We incorporated biodiversity conservation into thenational standard GB/T 18356-2007 Product ofGeographical Indication - Kweichow Moutai Liquor andcollaborated with the Ecological Environment ResearchCenter of the Chinese Academy of Sciences to conductresearch on plant biodiversity in demonstration areas.
●In 2024, the Company added100,000square metersof greening area, achieving a green space rate of over49%in the factory area, and was awarded the title of"Green Factory" at national levels.
●ISO 9001 Quality Management System Certificationand Hazard Analysis and Critical Control Points(HACCP) System Certication remained continuouslye?ective.
●The inspection coverage rate for product batchesat the time of leaving the factory was100%, thequalified rate for product supervision sampling was100%, and the factory acceptance rate for productswas100%.
●Maturity of quality management increase
10.3
points,achieve
916.5
points; product quality assuranceindex increase
1.93
points, achieve
98.73
points;The product quality score of Moutai baijiu Flying Fairy(Feitian) increase
0.11
points, achieve
98.61
points.Indicators have remained stable at an excellent level.
●We won a total of
awards related to quality,including
international awards,
national awards,and
provincial awards.
●A total of
million yuan was invested in worksafety. The safety production maturity reached
97.1
points, and the annual occupational health and safetytargets were achieved
●The customer complaint handling rate was100%,and there were 0product recall incidents.
●The consumer satisfaction score was
90.3
, anincrease of
0.7
points compared to last year.
●
The collective contract signing rate reached100%.
●ISO 45001 Occupational Health and Safety ManagementSystem certication covered all relevant operations of theCompany.
●The coverage rate of production safety liability insuranceand work-related injury insurance reached100%.
●A total of
products were developed throughout theyear to better meet consumer needs.
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Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Material Topics Identication and DeterminationKweichow Moutai fully considers the new expectations of various stakeholders regarding development, better meeting thecompliance requirements of the Guidelines No. 14 of the Shanghai Stock Exchange for Self-Regulation of Listed Companies -Sustainability Report (Trial) regarding dual materiality. In 2024, the Company conducted its rst identication and assessment ofdual materiality topics across the Company.Based on the analysis of the 2023 materiality matrix results, combined with the industry development trends, and capital marketfocus, interviewing with departments (units) highly related to ESG topics and the distribution of stakeholder questionnaires, wewill collect evaluations of the impact importance and nancial importance of ESG issues from internal and external stakeholders,such as directors and executives, employees, suppliers, etc., and make a comprehensive judgment on the arrangement ofimpact importance and nancial importance issues in 2024, thereby forming Kweichow Moutai's 2024 dual materiality matrix.
Review the Dual Materiality Matrix
Identication of Topics with Financial Materiality
●Sort through the requirements for nancial signicance assessment of ESG topics fromregulatory agencies and major ESG rating agencies, identify risks and opportunities that a?ectthe Company's business operations, nancial condition, operating results, cash ow, etc., andassess the nancial impacts generated.
●Conduct interviews and research with main responsible departments (units) highly related toESG topics one by one, collecting directors' and executives' nancial materiality questionnaireson ESG topics, investigating historical data, nancial impacts, and future nancial planningto derive the nancial signicance ranking of each ESG topic, forming nancial signicanceassessment results.Identication of Topics with Impact Materiality
●
Based on the results of the 2023 materiality matrix, combined with industry developmenttrends, peer benchmarking, and capital market attention, and used an online questionnaire tocollect 5,284 responses from stakeholders, nally formed the determination results of impactimportance for each ESG topic.
●Submit the dual materiality matrix to the ESG Promotion Committee for conrmation,resulting in the nal dual materiality matrix for 2024.
Develop the Dual Materiality Matrix
●Combine the nancial materiality determination results with the impact materialitydetermination results to form a dual materiality matrix.
Dual Materiality Topic Identication Process
●Operational compliance andprivacy and data security
●Risk management
●Business ethics andanti-corruption
●Corporate governance
●Ecological conservation
●Water management
●Climate Change Tackling
●Packaging material andwaste management
●Products' carbon footprint
●Product safety and quality
●
Supply chain management
●Customer service
●Occupational health and safety
●Employee rights, interests, andbenets
●Responsible marketing
●Public welfare activities
Results of the Materiality Topic Determination in 2024
Governance DimensionEnvironmental DimensionSocial Dimension
Environmental topicsSocial topicsGovernance topics
Materiality to Financial ImpactTopics of general importance
Dual Materiality Matrix of 2024
Materiality to ESG Sustainable Impact
Topics of high importance
Packaging material and waste managementClimate Change TacklingProducts' carbon footprint
Water management
Business ethics and anti-corruption
Ecological conservationCustomer service
Supply chainmanagement
Product safety and quality
Risk managementCorporate governance
Public welfare activities
Employee rights, interests, and benetsOccupational health and safetyResponsible marketing
Operational compliance and
privacy and data security
2019
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportStakeholder CommunicationThe Company attaches great importance to communication and interaction with various stakeholders, establishing acomprehensive, regular, and multi-channel communication mechanism to respond to stakeholders' expectations in a timely ande?cient manner, accept their supervision, promote cooperation and win-win outcomes among all parties, and jointly explore newpaths for sustainable development.
The key issues of concern are comprehensively identified from the results of the dual materiality topic analysis of Kweichow Moutai and regularcommunication with Kweichow Moutai's stakeholders.
Stakeholder Communication
StakeholderExpectations and DemandsCommunication and Response
Customers
Product safety and qualityCustomer serviceResponsible marketingResponsible drinking
Matrix-based quality control and quality managementthroughout the lifecycleImproving the customer service system and enhancingconsumer satisfactionStandardizing regular marketing communications andeliminating exaggerated and false promotionActively advocating responsible and healthy drinking
Shareholders
Operational complianceOpenness and transparencyGood returns
Optimizing governance structure and adhering to the basicprinciples of complianceImproving information disclosure and maintaining proactivecommunicationStrengthening market value management and carry outshare buybacksIncreasing dividend distribution and actively rewardshareholders
Employee
Occupational health and safetyRemuneration and benetsand the protection of rightsand interestsEmployee training and careerdevelopment
Setting up a Leading Group for Comprehensive Health tocoordinate the work on health and safetyImproving the remuneration and benet system ande?ectively protecting the legitimate rights and interests ofemployeesImproving the promotion channels for employees and theemployee training system
StakeholderExpectations and DemandsCommunication and Response
Partners
Supply chain managementBusiness ethics
Building green supply chains and promoting iterativesupply chain upgradingMaintaining open and fair procurement and improving thereporting channels
Industry
Healthy development of theindustryClimate Change TacklingResponsible marketingEcological conservation
Building a green value chain and promoting the sustainabledevelopment of the industryBuilding industry benchmarks and strengtheningcooperation with peer companies in promoting rationaldrinkingCreating "production-living-ecological spaces" andgathering e?orts into environmental and ecologicalconservation
Government andregulators
Operations in compliance withthe lawEcological conservationDriving local development
Improving the mechanism for law-based corporategovernancePromoting the establishment of a long-term mechanism forthe ecological conservation of the Chishui River BasinPaying taxes in accordance with the law and drivingemployment to boost local industries
2221
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SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report2221About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
2423About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportCorporate GovernanceThe Company firmly believes that sound corporate governance is essential for robust operations. We actively establish ascience-base, efficient governance structure and system featuring a clear division of rights and responsibilities. We alsocontinuously promote standardized, modernized management to empower our sustainable development.Management of the Board of DirectorsThe Company has continuously improved its governance structure to enhance the e?ectiveness of the Board of Directors andensure the scientic formulation and e?cient execution of decisions. Meanwhile, we persist in optimizing the composition of theBoard and ensuring its expertise and diversity.Governance Structure and MechanismWe strictly abide by laws and regulations such as the Company Law of the People's Republic of China, the Securities Law of thePeople's Republic of China, and the Code of Corporate Governance for Listed Companies, as well as regulatory requirements.In line with our realities, we have created a decision-making body for our operations and management comprised of theShareholders' Meeting, the Board of Directors and its specialized committees, the Board of Supervisors, and the management.This governance mechanism is characterized by a clear division of responsibilities, coordinated functioning, and e?ective checksand balances, fully ensuring e?cient and science-based operations.
Corporate Governance Structure
Shareholders'
Meeting
Board ofDirectors
and ItsSpecializedCommittee
Board ofSupervisors
Management
●It is convened in strict accordance with the Rules for General Meetings of Shareholders of ListedCompanies, the Articles of Association
and the Rules of Procedure for Shareholders' Meeting,etc.
●It is responsible for meeting notication, deliberation, and voting and aims to ensure that shareholdersenjoy equal status and can exercise their rights such as the right to be informed, participate, question,and vote.
●In 2024, the Company held a total of two Shareholders' Meetings.
●As the executive body of the resolutions of the Shareholders' Meeting and the decision-making bodyof our operations and management, in accordance with the statutory powers provided in the CompanyLaw and the Articles of Association of the Company,etc. and authorized by the Shareholders' Meetingand fully plays the vital role in "developing strategies, making decisions, and preventing risks".
●It has five specialized committees: the Strategy Committee, the Audit Committee, the Risk andCompliance Management Committee, the Nomination Committee, and the Remuneration andAppraisal Committee. Each committee fullls the principles of corporate governance in a top-downfashion, with a clear division of labor, well-dened rights and responsibilities, and e?ective operations.
●It oversees the financial position and operations of the Company and the fulfillment of duties bydirectors and the senior management and promotes the coordinated functioning and e?ective checksand balances of the corporate governance structure.
●It consists of three supervisors, including one employee supervisor.
●It manages day-to-day production and operation matters in accordance with statutory powers andauthorization of the Board of Directors.
●It organizes and implements the resolutions of the Board of Directors, reports to the Board ofDirectors, and handles operations, reform, and other tasks, thus playing the role of "planning businessoperations, emphasizing implementation, and enhancing management".
Board ofSupervisors
StrategyCommitteeNominationCommittee
Audit Committee
Risk and ComplianceManagement CommitteeRemuneration andAppraisal Committee
Shareholders' MeetingBoard of DirectorsManagement
Kweichow Moutai Co., Ltd.
Discipline InspectionCommissionParty Committee
Youth League
CommitteeLabor Union
https://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2023-12-07/600519_20231207_GMDX.pdf
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance ReportE?ectiveness of the Board of DirectorsThe Company regularly convenes meetings of the Board of Directors to advance strategicdecision-making and ensure operational compliance and e?ciency. According to the Articlesof Association of the Company, a Board meeting shall only be convened with the presenceof more than half of the directors. In 2024, the Company held a total of 13 Board meetings,with an attendance rate of 100%. As of the end of the reporting period, the average tenure ofdirectors was 1.5 years.The Company has established a well-developed director election and appointment processto enhance the decision-making e?ciency and quality of the Board of Directors. Accordingto the Articles of Association of the Company, each term for directors is three years, Whenappointing new Board members, we employ diversified channels to identify qualifiedcandidates.Regarding the remuneration policy, we have developed differentiated remunerationmanagement systems and plans for directors and the management including, fixedremuneration, annual performance-based remuneration and tenure incentives, to incentivizedirectors and managers to create long-term value. In 2024, we continued to refine theperformance assessment system for Board members, taking into account our production,operations, and management, the progress of business targets, the implementation ofnancial budgets, and the performance of duties.
Our Board of Directors adopts a mechanism that features "positive incentives + negative constraints" to assess the business.It uses positive indicators to boost the enthusiasm of the management and negative indicators to ensure their operationalcompliance, thereby strengthening the application of the assessment results and rigid fulllment.The Company has formulatedthe Measures for Performance Assessment of Members of the Management and the Measures for Remuneration Managementof Members of the Management and other institutional documents, which take sustainability-related indicators such as safety,quality, environmental protection, compliance requirements and corporate management as an important consideration inevaluating the performance, and adopts demerit points as a means of restraining the negative events related to ESG. TheCompany has linked compliance management to compensation, stipulating that if an employee is subjected to retention,administrative detention, or other coercive measures by judicial authorities due to disciplinary or legal violations, the relevantcompensation will be suspended.
Total number of boardmeetings held by theCompany
times
Directors' attendance rate of100%
PositionRemuneration Management Mechanism
We adopt a mechanism that features "positive incentives + negativeconstraints" to assess the business performance of the management. Weuse positive indicators to boost the enthusiasm of the management andnegative indicators to ensure their operational compliance.Management
Director
Independent
Director
Independent directors' remuneration in accordance with the resolutionof our Shareholders' Meeting.EmployeeDirector
The remuneration of employee directors is assessed under our remunerationmanagement system and individual performance appraisal results.
Composition of the Board of DirectorsWe firmly believe that the independence and diversity of the Board of Directors are critical to safeguarding shareholders'interests and our stable operations. As of the end of the reporting period, our Board of Directors consisted of 7 directors,including 3 independent directors, 2 female directors, and 1 employee director. The number of independent directors on theBoard of Directors accounts for approximately 42.86%.
Professional Backgrounds of Board Members
The Company explicitly requires independent directors to provide independent opinions and fullltheir oversight functions. The Audit Committee is comprised entirely of independent directors,each recognized as an expert in their respective domains. The Nomination Committee and theRemuneration and Appraisal Committee are chaired by independent directors, with independentdirectors accounting for more than 50% of the membership. In 2024, we appointed Mr. GUOTianyong as the convener of independent directors responsible for convening and presiding overspecial meetings of independent directors.At the director nomination stage, we carefully assess diverse factors including candidates'educational backgrounds, work experience, professional expertise, and part-time services. TheNomination Committee operating under the Board of Directors evaluates the Board's structure,size, and composition regularly every year to ensure diversity and complementarity in areas suchas skills, knowledge, experience, gender, and age, as well as meet the diverse needs of variousbusiness segments.
NameGenderRole/Responsibilities
Professional ExpertiseIndustryExperience
RiskManagement
Experience
FinancialManagementExperienceZHANG DeqinMaleChairman
WANG LiFemale
Director and Acting General
ManagerGUO TianyongMaleIndependent Director/SHENG LeimingMaleIndependent Director/
WANG XinMaleIndependent Director/LIU ShizhongMaleDirector/WEI FangFemaleEmployee Director//
Independence
Diversity
The Board of Directors comprises experts from diverse fields, including accounting, finance,law, and the distilling industry. Their collective expertise offers comprehensive and specializedguidance for strategic planning and business decision-making, ensuring the Company sustainabledevelopment.Professionalism
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportRisk and Compliance ManagementThe Company consistently enhances its risk and compliance management system. By conducting comprehensive riskassessment and compliance management covering all business operations, we have further improved our risk and compliancemanagement capabilities.Risk and Compliance Management SystemThe Company has established a well-defined organizational structure for risk and compliance management. The Board ofDirectors, as the decision-making body for risk and compliance management, performs risk and compliance management andoversight duties. The Risk and Compliance Management Committee operating under the Board gives full play to the synergistice?ect of risk management and compliance management and regularly reports to the Board on specic matters. The Risk andCompliance Management Committee has an o?ce, with the head of the Legal Compliance Department serving as the director,and comprised of the Audit Department, the Accounting Department, and other departments, which jointly perform risk andcompliance management in the Company.
Risk and Compliance Management Structure
Board of Directors
Legal Compliance DepartmentAudit Department, Accounting Department,Discipline Inspection Commission, Organizationand Human Resources Department, andCorporate Development Department
The Company continuously optimizes its institutional system, systematically formulates an institutional map focused on the valuechain, and realizes standardized management. We also bolster governance capabilities and management e?ciency. In 2024,we analyzed and drew an "institutional map" covering 23 domains, including strategic management, corporate governance,production management, ESG management, quality management, compliance and risk management, discipline and supervision,and providing a comprehensive and systematic overview of our institutional framework. Through the "One Map for One Domain"initiative, we have identied 613 policies, including 6 foundational policies, 97 rst-level policies, 311 second-level policies, and199 third-level policies. We have also established a dynamic updating system management mechanism to adjust and optimizethe system map through the system's "abolition, modication and establishment" work.
Party Building
CorporateCultureCorporateGovernance
AdministrativeManagement
Performance Analysis &
Improvement
ProjectManagement
Compliance& RiskManagement
Discipline &Supervision
StrategicManagement
Political DevelopmentCulturalManagementMeeting Rules
DocumentProcessing
Annual Objectives Analysis Improvement & Innovation
Strategic Analysis &
Formulation
Strategic Deployment &Implementation
Strategic Evaluation &AdjustmentOrganizationalManagement
Leadership
Team
Organizational Structure
& Optimization
Cultural HeritageProtectionManagementAuthorizationManagement
A?airsProcessing
Duty Fullment of Management ofBoard Directors, Supervisors, and
Senior Executives
IntangibleCultural Heritage
ManagementOperations
Control
Management
Innovation
Internal ControlManagement
DisciplineManagementAuditing
SupervisionManagementRights Protection
System
Risk &Compliance
Legal A?airs
Maintenance& Servicing
LaborOutsourcing
EmergencyResponseFixed AssetInvestment
Technological R&DConsultingServices
Advertising
Research &Development
Technical ResourceManagementR&D ProcessManagementTechnologicalAchievementManagement
QualityManagement
Quality TargetManagementQuality FoundationManagementQuality OperationsQuality Analysis &Improvement
Brand Management
ESG ManagementBrand Promotion &
Maintenance
Public RelationsManagementCorporate SocialResponsibilityManagementDaily OperationsManagementEnvironmentalManagementCorporateGovernance
Digitalization ManagementInfrastructure ManagementIT SystemManagementIT Infrastructure Management
Measurement Management
CybersecurityManagementMaintenanceManagementEnergyManagementEngineeringManagementEquipmentManagement
ProductionManagement
Production TargetManagementProductionResource Allocation
ProductionOrganizationMeasurement &
Evaluation
Supply Network
Management
ProcurementManagement
Planning & Scheduling
ManagementSupplier ManagementWarehousingManagement
Marketing & Services
MarketAnalysisDemandManagementCustomer Relationship
ManagementiMoutai Management
MarketingPlanningSalesManagement
Ecological & Environmental
Management
Ecological Target
ManagementEnvironmentalComplianceDual Carbon ManagementEmergency Management
PollutionPreventionEnvironmental GreeningAssessment & Inspection
Safety Management
Safety Objectives &
ResponsibilitiesSafety ComplianceOperational ProcessContinuous ImprovementEmergency Response &
RescueComprehensive Security &
Protection
Human Resources
Management
Development
UtilizationSelectionRetention
Financial & AssetManagement
FinancialManagement
TaxManagement
Investment ManagementPhysical Asset Management
Intangible AssetManagement
BudgetManagementFundManagement
Statistical Management
Market ValueManagement
Work Style Development
Ideological DevelopmentArmed Forces, Petitions, andCondentiality Management
OrganizationalDevelopmentTrade Union & YouthLeague Development
Direction
Management
Authority &
Responsibility
Management
Objective& OutcomeManagementRisk &Bottom LineManagement
Value Creation & Support
Risk and Compliance Management Committee
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Case
Compliance ManagementIn strict accordance with laws, regulations, and regulatory requirements, the Company has established a sound compliancesystem. We have formulated various policies such as Compliance Management Measures and Internal Control ManagementMeasures. In addition, we have created compliance guidelines and compliance checklists. We have also strengthenedcompliance reviews of major decisions, economic contracts, rules and regulations, and new product development.The Company has formulated the Decision-making Policy for Related Transactions, which clearly outlines the fundamentalprinciples, decision-making procedures, and decision-making authority in related transactions. This aims to ensure fair andreasonable pricing, procedures in legal compliance, and adequate disclosure of information for related transactions. We complywith pertinent provisions of the Guidelines of the Shanghai Stock Exchange on the Self-Regulation of Listed Companies No.5-Transactions and Related Transactions. Our related transactions are all within the limits of the amounts deliberated andapproved by the Shareholders' Meeting and the Board of Directors of the Company. Notably, when voting on the motions onrelated transactions, the related shareholders and directors will abstain from voting.The Company integrates the compliance concept into its production and operations. By conducting compliance training, weenhance employees' compliance awareness. In 2024, the Company organized 45 training sessions on compliance management.
Six major risks: Strategic risk, market risk, nancial risk, operational risk, legal risk, and public opinion risk.
Risk ManagementIn 2024, the Company formulated the Risk Management Measures, the Risk Management Enhancement Action Plan (2024-2026), and the Risk Management Implementation Rules. We established a three-tiered risk management structure of"implementation, guidance and oversight". We also clarify the functional responsibilities to ensure the e?ective implementationof all management initiatives.
Risk Management Organizational Structure
Executing risk identication, assessment, response, and managementimprovement during business development and operations.Coordinating and guiding the processes of risk identication,assessment, control, and improvement of six major risks
.Categorization andmanagement of six major risk
categories' departments
Business and functional
departments
Guiding
Executive
Inviting External Lawyers to Deliver Legal TrainingOn July 12, 2024, the Company held a special compliance legaltraining seminar. This training aimed to deepen the understandingof laws, regulations, and case studies, systematically outlinecompliance risk identification and compliance review, and helpparticipating employees internalize legal boundaries as guidelinesfor business management. By deeply integrating legal thinkingwith business practices, the training continuously strengthenscompliance risk control, providing solid support for projectcompliance and e?cient progress.
Disciplinary departments
Super-visory
Supervising and inspecting risk management practices, o?ering evaluations andsuggestions on rectication, and enforcing accountability as per regulations;Ensuring the timely enhancement of risk management by the departmentsinvolved.
The Company continuously improves its risk management processes through measures such as risk identification, riskassessment, risk response, and risk management improvement, to keep risks under control. In addition, we conduct annualaudits of the risk management and internal control systems to improve risk management.
RiskAssessment
Risk ManagementImprovement
RiskIdentication
RiskResponse
●We conduct systematically risk identication at least once a year. Each department,in conjunction with its business processes, identies risks that may a?ect theCompany or the achievement of business objectives. They analyze the causes ofthese risks and consequences, and generate a department-level risk list.
●We consolidate the risk lists from all departments to form a company-level riskdatabase.
●We organize risk assessments to classify and grade each risk in the risk database.
●
At the initial risk assessment stage, risks are preliminarily classied as general risk,signicant risk, and critical risk, forming the initial assessment results. During the re-evaluation phase, we organize the Company's middle management to review theresults of the initial assessment and nalize the risk classication.
●
Based on the risk assessment results, we organize risk response activitiestailored to di?erent risk levels.
●Key risk response measures are formulated for general and signicant risks.For critical risks, detailed risk response plans are developed, and risk warningindicators are set.
●
We conduct self-assessments of risk compliance and make a summary ofrisk management.
Compliance specialized legal training site
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Case
In 2024, the Company identifies risks across six major categories: strategy, market, finance, operations, legal, and publicopinion, and establishes a risk database. With a great emphasis on controlling ESG risks, we have incorporated such risks,such as information leakage risk, the risk arising from insu?cient rigor in supplier qualication reviews, content infringement risk,and safety production risk, into our overall risk management system. This unied approach e?ectively enhances our capabilityto address ESG risks. Based on our realities, we conduct due diligence covering key aspects of production and operations. Wealso comprehensively identify various ESG risks and formulate response measures to ensure e?ective to prevent ESG risks.The Company attaches importance to risk management and carries out risk management training and publicity for all employees.In 2024, we hosted two company-level training sessions on risk management to further enhance employees' awareness of riskmanagement.
Inviting External Experts to Deliver the Training on Risk ManagementIn 2024, we invited external risk management team experts to organize 2 risk management training sessions.The rst training session aimed to help various departments better understand the risk information library, caselibrary, and database, as well as strengthen their skills for risk control. The second training session was designedto assist the pilot departments in further optimizing their risk management practices, enhancing the e?ectivenessof risk management, and improving their capabilities for risk management.
Data Security and User Privacy Protection
The Company has built a comprehensive network and information security management system, strengthened network andinformation security management. We focus on enhancing the culture of network and information security, prioritize data securityand user privacy protection, while also strengthening employee security awareness training, improving emergency responseplans, and ensuring the stable operation of information systems.Network and Information Security ManagementThe Company has developed closed-loop cybersecurity management system. We rigorously conduct information securitymanagement e?orts such as the Cybersecurity Grade Protection Assessment, enhance training on network and informationsecurity awareness, and reinforce the defense line of network and information security.
We have built a sound network and information security management system. The Company has established a Leading Groupon Cybersecurity and IT, led by the Chairman and General Manager, with an office at the Digital Technology ManagementDivision. This team coordinates the management, planning, guidance, and supervision of cybersecurity and informatizationefforts. Additionally, a Risk and Compliance Management Committee is set up under the Board of Directors to coordinatestrategic decisions on privacy protection and data security. The specific execution bodies are the office under the Risk andCompliance Management Committee and its member units.
Network and Information Security Management System
Risk management training site
The Company has improved the Net-work and Information Security Manage-ment Measures, the Terminal SecurityManagement Regulations, and otherinstitutional documents, covering allfunctional departments and subsidiaries,to strengthen network and informationsecurity management. In 2024, theCompany conducted the ISO 27001 In-formation Security Management Systemapplication and audit process, success-fully passed the ISO 27001 review, andobtained the Information Security Man-agement Certication.
Information Security Management System Certication
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The Company actively promotes the building of an information security culture by organizing network and information securityawareness training, cybersecurity pacesetter skill competitions, and Cybersecurity Promotion Week activities. This ongoing effortenhances employees' understanding of information security and strengthens their sense of responsibility for network and informationsecurity, collectively building a security barrier for information. Additionally, the Company has established a network and informationsecurity interest group to regularly conduct practical o?ensive and defensive drills. The company actively participates in events suchas the "Wangxin Cup" "Wangding Cup" and o?ensive and defensive drills, the Company is focused on improving the capabilities ofits network and information security talent, establishing and rening a multi-level, multi-type network and information security talentdevelopment system.
Cybersecurity Pacesetter Skills Competition Site
D
C
ThreatIntelligenceEarly Warning
Notice
AttackPrediction
IncidentHandlingSecurity DrillsAnalyticalJudgment
BreachDetectionBaselineVericationPenetrationTesting
Tra?cMonitoringAssetIdenticationRiskAssessmentTraceabilityand EvidenceCollectionRisk Mitigation
Real-timeNotication
Network and Information Security Management Measures
p
A
Strategy
Known and Trusted
Manageable and
ControllableNetwork andInformationSecurityManagementMeasures
ProtectionPrediction
DetectionResponse
Planning
Operation
Construc-
tion
The Company has implemented a circular-driven, adaptive network and information security management initiative, e?ectivelyimplementing the requirements of the "three synchronizations" in network and information security. Under the overall securitystrategy of "known and trusted, manageable and controllable", the Company strengthens cybersecurity management andcontinuously enhances cybersecurity protection capabilities using the "PDCA" method. During the prediction phase, assetidentification, traffic monitoring, and attack forecasting are carried out. In the protection phase, security hardening, accesscontrol, and policy optimization are implemented; in the detection phase, penetration testing, vulnerability scanning, andbaseline verication are conducted; in the response phase, security tasks such as incident handling, analysis, and traceabilityare performed. This forms a security operations management closed loop of "prediction - protection - detection - response",providing strong assurance for the security, compliance, and stable operation of the Company's business systems.
Closed-loop Network and Information Security System
In 2024, the Company improved the Network and Information Security Emergency Response Plan, enhancing mechanisms forprevention, response, and disposal, and clarifying the post-incident emergency response process. The Company also developedthe 2024 Cybersecurity Emergency Drill Plan and conducted four cybersecurity emergency drills according to the plan. These drillssimulated real hacker attack scenarios to practice emergency response procedures. During the drills, third parties were organized toconduct traceability analysis by simulating hacker attack paths, perform hazard detection, and test the e?ectiveness of the emergencymechanisms and the usability of the emergency plans, ensuring a swift and e?ective response in the event of a real incident.
The Company has deployed traffic probes to capture key data such as network traffic and system logs in real time. Through theproactive monitoring function of the situational awareness platform, potential security threats are quickly identied and alerted. Thecybersecurity engineering team conducts in-depth analysis of the alert logs collected by security devices, accurately identifying ande?ectively intercepting various potential malicious attacks, ensuring the security and stability of the network environment.
Personnel and Technical Support
Cybersecurity Emergency Drill
In 2024, the Company conducted an ITGC external audit, commissioning a third-party professional organization to focus on sevenkey business systems, including iMoutai, the Moutai Liquor Marketing Management System, the Moutai Liquor Storage and LogisticsSystem, and others. The audit covered several aspects, such as cybersecurity management, information system operation andmaintenance management, information system development, testing and maintenance, and data backup. The audit results metcompliance requirements. Through the "Audit-Rectication-Disclosure" closed-loop process, the Company achieved a shift from passiveresponse to proactive leadership, promoting continuous improvement in security governance and creating sustainable value for theCompany's stakeholders.
In 2024, the Company had
no data security incidents.
The Company conducted cybersecurity level protection assessments for 13 Level 3 business systems in 2024, including iMoutai, theBig Data Service Platform, and the Traceability System. The assessments passed re-evaluation. We fullled the main responsibility ofcybersecurity through the cybersecurity grade protection assessment, and at the same time rectify the non-conformities found in theassessment to enhance the stability and reliability of the systems.
Cybersecurity Grade Protection Assessment
External Audit and Risk Assessment
Network and Information Security Culture Building
Security
AuditComplianceTestingVulnerabilityScanning
SecurityIsolation
LeastPrivilegeSecurityBaselineSecurityHardeningAccessControlPolicyOptimization
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance ReportCaseCybersecurity Awareness Training in 2024On June 19, 2024, we conducted a cybersecurity awareness training session. The training included 105participants, comprising employees, distributors, suppliers, and third-party partners. The training focused on ITsecurity, protection of personal information, the risks of weak passwords, and email phishing prevention, aimingto enhance the cybersecurity awareness of all participants.
On-Site Training on Cybersecurity Awareness
Business EthicsEmbracing the principle of business integrity, we have established a sound business ethic governance system and resolutelycombated corruption. We also implement robust control measures in areas such as anti-money laundering and anti-unfaircompetition in an orderly manner to ensure the compliance and stability of our operations. Furthermore, we prioritize fostering aculture of business ethics, regarding integrity as a core driving force for high-quality development.We have established a Risk and Compliance Management Committee, as a Board-level committe, oversees and guidesbusiness ethics matters. We and our subsidiaries have set up disciplinary inspection agencies or are equipped with disciplinaryinspectors responsible for investigating and handling cases of violations and non-compliance. We have developed a Five-Sphere Integrated
coordinated supervision working mechanism to further strengthen the collaboration and cooperation andcontinuously improve our oversight system.
The Company strictly complies with laws and regulations such as the Company Law of the People's Republic of China, theAnti-Unfair Competition Law of the People's Republic of China, and the Anti-Monopoly Law of the People's Republic of China.We have formulated and issued the Business Ethics Policy of Kweichow Moutai Co., Ltd.
, to standardize the business ethicalbehavior for all employees, partners and other related parties, and oppose any form of corruption, bribery, money laundering,monopoly, insider trading, conict of interest, and unfair competition.Systems Regarding Business Ethics
Operating Process of the Five-Sphere Integrated Coordinated Supervision Working Mechanism
Provisions for the Registration and Filing of Constructionof Engineering Projects and Investment of Fixed AssetsAnti-Monopoly Compliance GuideAnti-Unfair Competition Compliance GuideWork Safety Compliance GuideEcology and Environmental Protection ComplianceGuideRules on Supplier Management for Husks and StrawsRules on Supplier Management for Hardware and Low-Consumption Materials
Several Measures of the Party Committee of theCompany for Further Strengthening Oversight forLeadership Teams and Their ChiefsNegative List of Employees' ActsMeasures for Handling Violations of Rules,Disciplines, and Laws by EmployeesProhibitive Provisions for Integrity in Constructionof Engineering ProjectsProhibitive Provisions for Procurement IntegrityProhibitive Provisions for Integrity in ResourcesSupplyProhibitive Provisions for Integrity in MarketingPersonnel
Five-Sphere Integrated: The Five-Sphere Integrated supervision system is composed of supervisory bodies for disciplinary inspection, organization andpersonnel, audits, nances, and legal a?airs.
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
Jointmeeting
Dynamic studyof the problem
Informationsharing
Coordinatedsupervisionand specialsupervision
Supervisionfor problemrectication
Referral ofproblem clues
and related
situations
User Privacy Protection
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
The Company attaches great importance to the protection of user privacy. We have formulated the Kweichow Moutai Co., Ltd.Data and Privacy Policy
and are committed to implementing strict protection of users' personal information.The Company strictly controls data access permissions, implements a strict application approval process, and ensures thatusers have the right to access, correct, and delete personal data. We adhere to the principle of "minimum and necessity" andhandle the collection of personal information with caution. The purpose, means, and access rights for data are clearly dened,ensuring transparency and compliance in information processing. For sensitive personal information, such as ID numbers, weuse encryption technology for storage and apply data desensitization when displaying it.We establish clear cybersecurity and condentiality terms with our partners and sign security commitment agreements to jointlycomply with personal information protection regulations. Through assessments by third-party agencies, we ensure compliancewith cybersecurity, data security, and personal information protection. We also conduct regular cybersecurity level protection anddata security risk assessments.Based on the cloud platform, we deploy a variety of security products, including anti-DDoS, rewalls, VPN, intrusion detection,WAF, and more, to build a comprehensive cybersecurity protection system. Our application systems strictly follow developmentstandards, use secure technical frameworks, and implement various encryption measures, such as salting, dynamic keys, anddynamic tokens, to enhance data security. For monitoring and early warning, we utilize cloud security products and businessaccess logs for real-time monitoring. By setting security thresholds and conducting inspections, we can promptly identifypotential security vulnerabilities and regularly carry out risk checks and remediation.In 2024, the Company implemented the above measures and no incidents of user privacy breaches occurred, effectivelyensuring the protection of users' privacy rights.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Case
Case
Business Integrity
Guided by the philosophy of "honest and compliance-based operations", the Company rigorously abides by relevant lawsand regulations. With integrity at the core of corporate development, we actively promote and practice a culture of integrity.Through integrity education and training, we enhance the integrity awareness of all employees and foster an honest and ethicalworkplace.
The Company adopts a "zero-tolerance" stance towardany acts of corruption or bribery. Each year, we conductspecialized audits covering all business operations to assessthe implementation of ethical standards and anti-corruptionand anti-bribery policies. We adopt a rened managementmodel that features "area-specic lists" for the nine areas ofsignicant integrity risk. We also dynamically identify risksand investigate hidden hazards. For problems identied, wewill conduct inspections and develop preventive measures.In 2024, we identied 217 integrity risk points and developed441 preventive measures.We prioritize enhancing employees' awareness of integrity,self-discipline, and compliance with laws and regulations.We host integrity training activities for all employees
,including lecture tours, integrity, and legal compliancelectures, warning education activities, and integrity cultureessay contests. In 2024, we organized 64 integrity trainingsessions, with a total of over 34,000 participants.
Integrity Education and Training
Legal and Disciplinary Lecture
In September 2024, the Company organized and carried outthe Integrity Promotes Business, State-owned EnterprisesLead the Way publicity month activity in light of the actual workof the Company. During the campaign, the Company opened acolumn on the Legal Services Platform for the promotion of theCode of Conduct on Integrity and Compliance, and pushed outpublicity and education articles on Requirements for Integrityand Compliance in Business Interactions and Requirementsfor Integrity and Compliance in Production and Construction tofurther guide the employees to rmly establish the concept ofcompliance, raise their awareness of compliance, and form afavorable atmosphere for integrity and compliance. In addition,the Company organized a web-based knowledge competitionon the theme of integrity and compliance, attracting 2,600employees to participate in this activity.
In 2024, we organized lecture series themed"Legal and Disciplinary Warning Education".Employees were required to study andimplement the newly revised DisciplinaryRegulations, thus continuously enhancingtheir awareness of compliance and self-discipline.
The Company strives to create and maintain an honest business environment with all stakeholders. We have disclosed variouspolicies such as the Business Ethics Policy of Kweichow Moutai Co., Ltd. and the Supplier Code of Conduct of Kweichow MoutaiCo., Ltd.
These policies clearly outline the requirements of anti-corruption and anti-bribery for suppliers and distributors. In thecontract review and signing processes, we have integrated anti-commercial bribery terms or integrity responsibility letters.
In 2024, we conducted a comprehensive review and strictly dealt with suppliers that had violated our anti-corruptionrequirements in recent years. Seven suppliers with serious violations of rules and discipline were added to the blacklist, and 14suppliers were disqualied for the 2024 Outstanding Supply Partner selection.In 2024, we formulated the 2024 Work Plan for Integrity Warning Education in Procurement and carried out anti-corruption andanti-bribery training activities for suppliers. We held warning education lectures at roundtable meetings for key suppliers, with atotal of over 200 participants.
Supplier Code of Conduct of Kweichow Moutai Co., Ltd.
We implement a supervision plan for all key suppliers to verify their compliance with anti-corruption and other
compliance policies.
Anti-corruption and Anti-bribery Requirements for SuppliersBusiness Ethics Policy of Kweichow Moutai Co., Ltd.
We strengthen control over anti-commercial bribery and anti-corruption risks for business partners. We also makeclear anti-commercial bribery and anti-corruption statements and requirements in business interactions, andprohibit any acts of commercial bribery and corruption;We require business partners, including all suppliers, to formulate anti-commercial bribery and ant-corruptionpolicies and implement corresponding plans to verify compliance.
Including full-time employees, part-time employees, and contractors.
"Legal and Disciplinary Warning Education" lecture site
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Case
Anti-money Laundering
Anti-Unfair Competition
Whistleblower Protection
In strict compliance with the national anti-money laundering law, the Company e?ectively fullls the legal obligations for anti-money laundering. We regularly evaluate the risks and situation of money laundering and terrorist nancing, etc.,. Furthermore,we carry out a series of anti-money laundering promotion activities to educate employees on the fundamentals of anti-moneylaundering e?orts.
The Company implements normative documents such as the Opinions of the State Council on Establishing a Fair CompetitionReview System in the Building of a Market System. We formulate and enforce institutional documents including the Anti-UnfairCompetition Compliance Guide. We have established a management system to address unfair competition, and clearly denedi?erent types of unfair competition practices and their scope. Meanwhile, we standardize the investigation and accountabilityprocess of violations of unfair competition, e?ectively prevent legal risks, and maintain a fair competitive market order. In 2024,the Company did not receive any complaints and reports related to unfair competition.
We consistently strengthen our business ethics oversight and reporting e?orts. In accordance with laws and regulations such asthe Regulations on Handling Complaint Letters and Calls and the Rules for Disciplinary Inspection and Supervision Organs onHandling Reports and Complaints, we have formulated the Management Measures for Complaint Letters and Calls. Besides,clarify the rights, responsibilities, and processes for handling complaints and reports, and ensure that such incidents areaddressed promptly and e?ectively.The Company encourages employees, users, and other stakeholders to monitor and report violations of laws and regulations.We provide open and accessible reporting channels, including a hotline, mailbox, and website. Upon receiving relevant reports,we strictly follow the procedures for handling complaints.
Complaint Letters andCalls handling departmentReceiving a reportAssigning a numberand registeringClassied transferring
PreliminaryvericationComprehensiveanalysis
CollectiveresearchHandlingFeedback
Supervision andmanagement
Case supervisionmanagement department
Process of Reporting and Accusation Handling
Anti-money laundering trainingIn July 2024, the Company carried out training activitiesthemed on anti-fraud, anti-illegal fund-raising and anti-money laundering to analyze the traps and pitfalls ofnegative cases, to learn from the case, to improve theability and level of recognizing fraud, illegal fund-raisingand money laundering, and to enhance the awarenessof anti-money laundering.
Disciplinary Inspectionand Supervision O?ce
We have formulated policies that clearly out-line the methods for protecting whistleblow-ers. We promise to strictly keep confidentialthe whistleblower's personal information, suchas name, workplace, home address, phonenumber, and email, as well as the reportinginformation. It is strictly prohibited to verify thewhistleblower's handwriting, Internet Protocol(IP) address, and other information withoutauthorization. In addition, we accept anony-mous reports to ensure that whistleblowersare protected from any form of retaliation.
Telephone: 0851-22385896Website: http://guizhou.12388.gov.cnMailbox: Elevator entrance, 6/F, O?ce Building of KweichowMoutai Co., Ltd.
If a whistleblower is threatened or victimized due to reporting and accusing and les an application for protection, we will providetimely protection in accordance with the rules and regulations. lf a person being reported retaliates (against the whistleblower)by jeopardizing personal safety and damaging property or reputation, he or she will be seriously dealt with in accordance withthe rules and disciplines, suspected of violating the law will be transferred to the judicial organs in accordance with the law.
Reporting ChannelsAnti-money laundering training site
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Highlights of Technology Innovation DataTechnological InnovationThe Company has maintained an increase of more than 10% in R&D investment for many consecutive years, continuouslyimproving its innovation and R&D capabilities, enhancing corporate competitiveness, and supporting the Company's high-qualitydevelopment.Innovation DrivenThe Company has established a comprehensive innovation management system and built an e?cient technological innovationplatform. With over 200 scientic research projects deployed across the industrial chain's upstream and downstream sectors,it has accelerated the transformation of scientic and technological achievements, further stimulated internal innovation vitality,improved R&D e?ciency, and promoted collaborative industrial chain development.Innovation Management SystemThe Company has formulated the Charter of the Science and Technology Committee, establishing a research and developmentinnovation management system with the research department as the overall management institution for innovation, thescientific and technological committee as the evaluation body, and the functional department as the implementing unit forinnovation. In 2024, the Company revised the Regulations on the Management of Scientic and Technological Research andDevelopment Projects, further standardizing the classication of research projects, adding principles for selecting outsourcingunits, exploring the implementation mechanism of "open bidding for selecting the best candidates" for making breakthroughs intechnology R&D, and clarifying the primary responsibility for the transformation of achievements. The Company has establishedthe Implementation Rules for Micro Scientific and Technological Research and Development Projects, standardizing micro-research projects carried out by production workshops and other units to address practical di?culties encountered in productionengineering, continuously enhancing the innovation enthusiasm of employees, and comprehensively promoting the Company'stechnological innovation and development.In addition, the Company's scientic and technological innovation research activities strictly adhere to scientic and technologicalethical norms, including but not limited to the Law of the People's Republic of China on Scientic and Technological Progress,the Opinions on Strengthening the Governance of Scientific and Technological Ethics, and the Measures for Scientific andTechnological Ethics Review (for Trial Implementation) among a series of laws, regulations, and related provisions.
Empowering the industrial chain with the innovation chain, and supporting the Company'sdevelopment; strengthen talent and platform construction, solidify the foundation for innovation,delve into the research of "4 dimensions + five major core technology systems", enhancecomprehensive strength in technological innovation, and lead the innovative development ofChina's liquor industry.
784 innovation composite score in 2024 and achieve 800 innovation composite score by 2027.
Technology Innovation Strategy
Technology Innovation Goals
R&D Investment
RMB
million
RMB
million
2023Year-on-Year Change2024
Growth of
11.74%
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportTechnology Innovation PlatformThe Company actively promotes the construction of the "two laboratories, two centers and one station" independent innovationplatform, e?ciently utilizing advantageous resources, and has made key progress in 2024.
Construction of Five Innovation Platforms - "TwoLaboratories, Two Centers and One Station" in 2024
It has been approved to enter the constructionphase, completed the establishment of theacademic committee, and held its rst academiccommittee meeting.
Guizhou Province Biomanufacturing
Laboratory
Guizhou Provincial Key Laboratory of Industrial
Microbiology
It has been approved to enter the constructionphase, held the annual academic conference,and appointed the academic committee. Fourprojects have been launched focusing on thedevelopment and characterization of distillingmicrobial resources, and six key open topicshave been released to the public.
Distilling EngineeringTechnology Research Center
It is orderly advancing 40 research projectsin the elds of intelligent manufacturing of theliquor industry chain, as well as green, low-carbon, and circular economy.
It has entered the e?cient trial operation phaseand passed the review by the Provincial SASAC.
Manufacturing Innovation Center
Ecosystem Field Scientic Observation and Research Station in the Middle Reaches of the Chishui River,
Guizhou ProvinceIt has been approved to enter the construction phase and the construction of theecological big data platform was completed for the upstream Daluotan WaterQuality and Hydrological and Observation Station.
Research and Development Industrial Chain LayoutThe Company focuses on research related to the upstream distilling environment and distilling raw materials, the analysis of thedistilling process in the midstream, and the assurance of product quality and waste treatment in the downstream, establishing acomprehensive R&D system that covers the entire industrial chain. This includes the" 4 dimensions" in research on raw materialcultivation and the" ve major core technology systems" in the distilling process, enabling collaborative development across theentire industrial chain.
In 2024, the Company carried out over 100 industry-university-research projects in collaboration with top domestic researchinstitutions such as the Institute of Microbiology of the Chinese Academy of Sciences, Dalian Institute of Chemical Physics of theChinese Academy of Sciences, Institute of Genetics and Developmental Biology of the Chinese Academy of Sciences, JiangnanUniversity, Wuhan University, and Shanghai Jiao Tong University, focusing on the "4 dimensions" research and ve major coretechnology systems in the distilling process, promoting the deep integration of theoretical knowledge and practical application.
Raw material cultivationDistilling process
"4 dimensions" researchFive major core technology systems
Basicsystemresearch
Processtechnology
control
systemLiquorbodydesignsystemQualityevaluationsystem
Foodsafetycontrolsystem
Improvedseedvarieties
FavorablelandE?ectiveMethods
HealthyEcology
Highlights of the Industrial Chain Project Construction Data
Technologyresearch valuechain coverageDeveloped orintroduced applicableadvanced technologies
96.5%
Scientic researchprojects carried outaround the industry chainOver
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportTransformation of Scientic and Technological AchievementsThe Company actively promotes the transformation of scientific and technological achievements into practical applications,continuously improving product quality, driving technological innovation, and promoting sustainable development.
Transformation and Application of Scientic Research Achievements in 2024
●
An ecological monitoring data platform forproduction areas and an ecological healthevaluation system for the Chishui River werepreliminarily established.
●Environmental pollution control levels weresteadily improved.
●Pilot equipment for the research anddevelopment of energy-saving and carbon-reduction technologies was completed.
●The application of new technologies in theanalysis of the material composition ofMoutai baijiu achieved remarkable results.
●A sensory quality terminology database forMoutai baijiu was established.
●Intelligent sensory evaluation andvisualization were preliminarily realized.
●Classication and discrimination modelsfor di?erent mouthfeel baijiu samples wereestablished based on electronic tonguetechnology, achieving a classicationaccuracy of 99.2% and a discriminationaccuracy of 100%.
●Rapid testing methods for Jiang-avorDaqu and baijiu analysis were e?ectivelydeveloped.
●
New breakthroughs were achieved inthe development of new varieties of rawmaterials.
●Supporting cultivation technology wasaccelerated for demonstration and promotion.
●The terroir features of raw material baseswere claried.
●Resource exploration and mechanismanalysis of distilling microbial strains werecomprehensively deepened.
●Breakthrough achievements were made inthe research of the high-temperature Daquenzyme system.
●The metabolic mechanisms of materialsystems in the fermentation process wereclaried.
●
An in-depth study of sorghum varietiesfurther provided scientic explanations forthe distilling process.
●The construction of a quality evaluationsystem achieved phased results.
●Research on automation equipment inthe production process yielded signicantresults.
Researchondistillingrawmaterials
Researchon distillingenvironments
Research on
distilling
microor-
ganisms
Researchon
distillingtechnology
Research onavor and food
safety
Science and Technology Innovation Awards in 2024 (Partially Listed)
China Patent
China Patent Annual Second PrizeChinese Workers' Technical Association
China Alcoholic Drinks Association Award
Excellent Paper Award for Scienticand Technological Progress from theChina Alcoholic Drinks AssociationChina Alcoholic Drinks Association
Quality Science and Technology
Achievement Award
First-Class Achievement inNational Quality Management
Group ActivitiesChina National Light Industry Council
China National Food Industry Association
Science and Technology Award
First Prize of the China NationalFood Industry AssociationScience and Technology AwardChina National Food Industry AssociationThird Innovation and Creativity Award of
Provincial SASAC
Construction and Application of RapidTesting System for Physical andChemical Indicators of Jiang-avorBaijiu Raw Materials and IntermediateProducts (Innovation Award)Guizhou Provincial SASAC
Organizing Committee of Digital Economy
of Industrial Chain and Supply Chain
Top Ten Outstanding Cases inDigital Economy of Industrial
Chain and Supply ChainOutstanding Award in Digital Economyof Industrial Chain and Supply Chain
Award NameProject NameAwarder Organization
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
Highlights of Scientic and Technological Achievements
paperspapersPublished
Indexed by SCI
Number of patent applications
Number of validpatents
Number ofinvention patents
Number of utilitymodel patents
Number ofdesign patents
Number of authorized patents
Distilling raw materialgermplasm resources - wheat
kinds
Distilling raw material germplasmresources - sorghum
kindsPreserve microbialstrain resourcesOver8,400
iMoutai Data
Lead Industry Development
The Company took the lead in revising and publishing the national standard Quality Requirements for Baijiu Part 4: Jiang-avor Baijiu, further standardizing and guiding the high-quality development of the Jiang-avor baijiu industry. In addition, wecompleted the project establishment and review of 31 national, local, and group standards, including the Quality Requirementsfor Baijiu Part 1: Mellow Baijiu, and participated in the formulation and revision of 12 industry, local, and group standards,including the Sorghum for Jiang-flavor Baijiu Distilling. We also completed research on the industry standard TechnicalSpecications for the Circulation of Original Baijiu and Crude Baijiu contributing to the improvement and upgrading of the baijiuindustry system.
Smart MoutaiThe construction of Smart Moutai accelerates the pace of industrial innovation and development, deepens digital layout,strengthens the integration of technological infrastructure and application scenarios, and drives data to achieve e?cient businesscollaboration and management e?ectiveness, demonstrating signicant results of technological innovation in enhancing industrytransparency and rening management.
2023Year-on-Year Change2024
millionmillionIncrease ofmillionTotal registered users
2073.86353.863
Innovation and Creativity Excellence Projects by the Provincial State-owned Assets Supervision and Administration Commission,receiving commendation from the Provincial SASAC.In the digital marketing eld, the iMoutai digital marketing platform gained 20 million new registered users in 2024, with a cumulativetotal of 73.863 million registered users and an average monthly active user count of 11.7 million. A total of 211 online marketing eventswere conducted, e?ectively boosting user engagement and conversion rates, further advancing Moutai's market expansion and brandinuence.
The Company has developed the Smart Moutai 2.0 Top-Level Plan (2024-2027 for the Joint Stock Company) around the liquor industry,deepening digital construction in five major areas: "digital base, marketing services, supply chain, operational control, and smartparks", and in seven aspects: "terminal, network, cloud, data, application, intelligence, and security". It focused on four key elements:
"technological infrastructure, application scenarios, platform operation, and overall coordination".In the industrial internet eld, based on technologies such as cloud computing, big data, the Internet of Things (IoT), and blockchain,a secondary node for the alcoholic beverage industry's industrial internet identier resolution was built, realizing one-code-per-box forpackaging materials, one-code-per-bottle for nished liquor, and bottle-box binding. A digital traceability system was developed, andthrough the "Jiangpin Chain", data collection and evidence preservation were achieved across stages such as packaging production,warehousing logistics, and terminal sales, forming a complete and trustworthy traceability system. Over 69 million instances of nishedliquor traceability services have been provided, and the "Jiangpin Chain-based Moutai Circulation Traceability System Practice" wasselected as a case study by the Cyberspace Administration of China (CAC) for blockchain innovation applications.In the management and control eld, digital technologies such as data middle platforms, accounting engines, ESB service buses, BPMprocess engines, and OCR recognition were used. These technologies integrate best practices across various management areas,including nance, legal a?airs, physical assets, and human resources, to build a digital system platform for integrated business andnancial management. This has comprehensively improved the digital management e?ciency of "people, nance, assets, and law",achieving a system-to-process match rate exceeding 80%, with mobile approval rates exceeding 60%. E?ciency in nancial closing,contract approval, and other tasks has increased by more than three times. The project was successfully selected for the Fourth
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
Sustainable Supply ChainThe Company builds "six supply chains" centered on raw and auxiliary materials, package and storage, engineering, service,equipment, and digital technology, continuously improving the supplier management system, collaborating with upstream anddownstream partners in the industrial chain, and striving to create an e?cient, collaborative, and green sustainable supply chainecosystem.Supplier EmpowermentThe Company formulates the Kweichow Moutai Co., Ltd. Supplier Code of Conduct, the Supplier Management Measures andother institutional documents, clarifying the standards of conduct for suppliers in employee rights, occupational health and safety,environmental protection, business ethics, and integrity, promoting the establishment of a fair, safe, green, and trustworthysupply chain system.When selecting important suppliers, the Company comprehensively considers risks associated with specic regions, industries,and commodity. To strengthen raw material management, the Company promotes the construction of a 20,000-acre rawmaterial demonstration base and facilitates the digital and mechanical upgrades of suppliers. Meanwhile, we have achievedfull video coverage of key areas such as supplier collection sites and transfer warehouses, and completed the construction ofthe "Five Ones" project, which includes: "One Certication" referring to organic green certication, "One Map" referring to themap of certied organic plots, "One Base" referring to the demonstration base, "One Warehouse" referring to the modernizedwarehouse, and "One Network" referring to the full-process traceability achieved through digital technology. We improve thewater conservancy facilities of the raw material demonstration base, with a modern storage capacity exceeding 500,000 tons,and the coverage rate of equipment for raw material sorting, conveying, drying, and testing reaching 90%. In terms of thebase management model, we realized a transformation to "human-network integration and overall control", with managementcoverage increasing from 30% to over 80%. This has enabled comprehensive control over the entire process of raw materialplanting, cultivation, management, harvesting, storage, and transportation, significantly enhancing the level of modernmanagement in the base.
Supplier Management Rules in 2024 (Partially Listed)
In 2024, the supplier classication and grading management model was optimized.
Supplier Classication: Suppliers are classied into three primary categories - key,significant, and ordinary categories - based on the procurement categories theyprovide, with suppliers o?ering multiple categories classied by their most importantcategory.Supplier Grading: Based on supplier classication, supplier performance capabilitylevels, and strategic supplier selection criteria, supplier relationships are divided intofour levels: strategic, preferred, assurance, and competitive levels, with dynamicadjustments made annually.
Supplier classicationand grading management
The supplier access standards comprehensivelycover multiple dimensions including basicqualifications, industry qualifications, technicaland service capabilities, production capacity,quality capability, environmental protection,social responsibility, sustainable developmentcapability, and willingness for strategiccooperation. On this basis, we iterated andupgraded the supplier access standards for rawmaterials and packaging materials, as well asestablished access standards for hardware andlow-consumption materials suppliers in 2024.
We continuously improved supplier assessmentstandards, established a supplier performanceevaluation index system, and simultaneouslyformulated 76 standards, including suppliermanagement regulations and performanceevaluation standards. Through precise samplingand in-depth inspections of core materials, boththe "Supplier Dynamic Quantitative AssessmentRate" and the "Quality Control Coverage Rate"remained at 100%. In 2024, we conductedannual supplier assessment evaluations totaling916 instances, achieving a supplier performanceevaluation excellence rate of 91%.
Supplier accessmanagement
Supplier performance processassessment management
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The Company has strengthened communication with suppliers, holding a total of 152 events through seminars and trainingactivities to deeply promote supplier management standards, systems, and company quality standards. Meanwhile, we continueto advance quality inspection work, controlling the discovery of quality issues at the forefront, e?ectively reducing quality costs.In 2024, the Company provided on-site guidance to 36 suppliers, regularly carrying out production line inspections and randomchecks on product shipments. Moreover, 17 training sessions on inspection standards and quality improvement were conductedfor supplier quality inspection and management personnel, covering nearly 500 participants, effectively supporting the dualenhancement of suppliers' "quality control + process technology".
Supplier Management Data
Total number of suppliers
Total number ofkey suppliers
Total number ofsignicant suppliers
Total number ofordinary suppliers
19.81%
Percentage of total spendon key suppliers
100%Annual audit ratioof suppliers
Cumulative numberof trained suppliers
Supplier Communication and Cooperation
Partnering with Distributors
In the 2024 distributor management work, the Company has taken a series of important measures to work hand in hand withdistributors to jointly enhance management levels and service quality.
In 2024, the Company carefully planned and implemented a series of training programs to help channel partnersenhance their overall capabilities. We held seven o?ine training sessions for the management of channel partnersstores (store managers, managers, or above), covering all 31 provinces and regions nationwide. Meanwhile, weprovided monthly online training for ordinary employees of channel partners and outsourced labor personnel ofself-operated companies, with a monthly training attendance of 4,920 participants. The training content coveredthemes such as company strategic promotion, company culture awareness, store service standards, marketactivity planning, user operation conversion, public opinion risk management, and safe business management.These programs helped channel partners s gain a deeper understanding of Moutai's market constructionrequirements and service standards, enhancing the customer service capabilities, product marketing levels, andmarket operation expertise of channel partners teams, ultimately providing consumers with a comprehensive high-quality service experience.In 2024, the Company launched a training program for distributors, sta? at Jiang-avour series baijiu experiencecenters, and theme terminal directors. Among them, the distributor training program consisted of six sessions,targeting a total of 239 core management personnel, including general managers, brand managers, salesdirectors, and regional managers of distributors. In 2024, the overall satisfaction rate of distributors reached
97.4%.
Signed the 2024 Moutai baijiu and Jiang-flavor Baijiu distribution contract to ensure that thetransaction process is legal and compliant, safeguarding fairness and transparency in transactions.Developed the Channel Partner Management Measures to standardize sales behavior andstrengthen the awareness of maintaining market order; formulated the Market MaintenanceManagement Measures to enhance market inspections and standardize market order.Regularly conducted market research, guidance, and service work. Based on market conditions,guided distributors to adjust market strategies, expand customer groups, and promote productsales; empowered Moutai liquor specialty stores, themed terminals for Jiang-avored baijiu, andexperience centers through platforms like iMoutai and JD Hourly Delivery, effectively servingdistributors.Developed the Management Measures for Customer Consultation and Complaints to standardizethe procedures for handling customer inquiries and complaints regarding the Company's productsor services; developed the Marketing Advisory Group Management Measures to standardize themanagement of the advisory group, fully utilized its role in o?ering suggestions, and strived to buildthe advisory group into a knowledgeable, responsible, and innovative think tank for the marketing ofJiang-avored baijiu.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportSupply Chain Risk Prevention and Control
The Company emphasizes on supply chain risk management with the goal of "enhancing risk compliance managementcapabilities and maintaining a close and clean cooperation relationship with suppliers", focusing on improving supply chainresilience and strengthening risk and compliance management.
To ensure supply chain security and strengthen supply chain advantages, the Company actively deepens cooperation withdigital strategic partners, accelerating resource sharing and the development of new productive forces. The Company haslaunched an business and nance integrated project to comprehensively enhance the management capabilities of personnel,finance, and materials. Meanwhile, it is accelerating the construction of an integrated supply chain system that includespackaging, blending and storage, liquor production, Daqu making, and comprehensive quality management, to form a completedigital integrated supply chain system. In addition, the Company has established an electronic procurement mall to centralizee-commerce procurement of small, scattered, and frequent materials, dynamically adjusting product prices through a pricelinkage mechanism to improve procurement e?ciency and reduce risks.
Case
Sustainable Development of the Supply ChainThe Company values the sustainable development of the supply chain and actively builds a green supply chain. According to theSupplier Sustainable Development Implementation Plan and Green Indicator System, adhering to the principle of "comprehensivecoverage and doing as much as possible", the Company actively guides and encourages cooperative suppliers to develop ESGpractices.The Company incorporates suppliers' carbon footprints and water footprints into the "Moutai Bill", establishes a "Dual Footprint" reductionworking group, and carries out basic data collection on the carbon footprint and water footprint of core products Kweichow Moutai baijiu(500ml, 53%vol), determines accounting boundaries, and calculates product footprints, based on which a series of water-saving andcarbon-reduction implementation measures have been formulated. In addition, the Company has formulated the Implementation Plan forthe Reduction and Green Development of Packaging Materials, which claries 19 work tasks to promote the reduction, light weight, andgreening transformation of packaging materials to enhance environmental friendliness.In 2024, the Company revised and improved the Moutai Baijiu Sorghum and Wheat Supplier Management Regulations, the PackagingMaterials Supplier Management Rules and other institutional documents based on institutional documents such as the ImplementationPlan for Product Packaging Materials for Green Supply Chains, the Finished Liquor Outer Packaging Materials Recycling ManagementSystem, and the Regulations on the Management of Waste Materials Recycling. In key areas of the supply chain, the Company willgradually incorporate green environmental protection and ESG assessment standards into the full life cycle management of suppliers,increasing the proportion of "greening" assessment scores, and adjusting the ESG assessment from an "additional bonus item" to a"xed proportion of 15%" to further guide suppliers in implementing the transformation of green packaging materials and reducing thecarbon footprint of packaging materials. Focusing on key elements of green development, the Company is promoting iterative upgradesin the supply chain. By 2024, we had helped 14 suppliers complete green and low-carbon-related certifications, and 22 suppliersobtained national-level or provincial-level green factory certication, assisting the Company in advancing its "dual carbon" work in anorderly manner.
Green Procurement and Supply Chain ConferenceIn December 2024, the Company held the "New Quality Leadership, Green Development, and Future-Connected SupplyChain" Procurement and Supply Chain Conference, gathering representatives from over 300 suppliers nationwide toexplore new development paths and discuss new development blueprints. During the reporting period, Moutai achievedbreakthroughs in full-chain collaboration, e?cient transformation of procurement and supply management, enhancedquality assurance capabilities, and laid the foundation for green digitization. At the conference, China EnvironmentalUnited Certication Center Co., Ltd. assessed and certied the carbon emissions of the conference and issued a zero-carbon certicate, demonstrating the Company's rm commitment to green development. In addition, the conference alsoclaried the focus of future work, which will further strengthen quality, cultivate new quality productivity, jointly practiceESG concepts, promote management modernization, and build harmonious supplier relationships.
Green Procurement and Supply Chain Conference
供应保障能力
We further improved the procurement risk prevention mechanism. We developed the Risk AssessmentMeeting Mechanism to clarify the content, timing, and methods of the meeting assessments, improve therisk assessment meeting mechanism, and enhance the effectiveness of risk assessment meetings. Wecomprehensively analyzed and identied the reasons for failed bidding projects in 2024 and developed targetedmeasures to respond to bidding risks, e?ectively preventing the procurement integrity risks that may arise fromsuch failures.We have established a comprehensive indicator for "Supply Network Assurance Capability" to assess supplychain resilience from four aspects: strategy, infrastructure, quality control, and improvement. This evaluationcovers 11 dimensions, 37 categories, and 66 items. We identified issues and targeted improvements toenhance supply chain resilience. In 2024, the supply network assurance capability scored 88.1 points, anincrease of 0.8 points compared to 2023, achieving the set target of 88 points.
Supply Chain Risk Response Mechanism in 2024
87.3
88.1
20232024Actual ValueTarget Value
Supply Assurance
Capability
Risk
Monitoringand
PreventionSupervisio
n
S
ys
tem
Im
p
ro
v
e
m
en
t
a
n
d
A
p
p
lica
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y
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About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report5655About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
5857
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportClimate Change Tackling
Kweichow Moutai deeply implements the sustainable development concept of "symbiotic coexistence, sharing benets, andmutual success", and regards the response to the national dual carbon strategy and global climate change. The Companycomprehensively manages climate change risks and opportunities from the four dimensions of governance, strategy,risk management, and metrics and targets, in accordance with the framework and recommendations of the InternationalSustainability Standards Board (ISSB)
through measures such as increasing investment in energy-saving technology researchand development, managing greenhouse gas emissions, and promoting the development of a sustainable supply chain, toexplore diverse pathways for Climate Change Tackling.GovernanceIn 2024, the Company improved its climate change Governance structure. The Strategy Committee, as a Board-level committee,acts decision-making body and is responsible for overseeing matters related to climate change and holds meetings on climate-related issues every year. The ESG Promotion Committee is responsible for assessing, managing, and reporting climate-relatedrisks and opportunities to the decision-making level on a regular basis.
●Approving the Company's climatechange management strategy andshort, medium, and long-term cli-mate change plans;
●Regularly receiving reports frommanagement on climate change-re-lated matters to provide strategicguidance for the Company's climaterisk and opportunity assessment;
●Approving climate change-relatedgoals and monitoring the progresstowards achieving these goals.
●
Focusing on global climate changetrends, policy and regulatory dy-namics, and cutting-edge practicesacross various industries, and for-mulating forward-looking climatechange addressing strategies inconjunction with the Company'sbusiness characteristics;
●Developing climate change man-agement measures, short, me-dium, and long-term plans, andclimate change-related goals, andsubmitting them for approval bythe decision-making level;
●Understanding and assessingthe potential impacts of climatechange risks on the Company,and regularly reporting climatechange-related matters to the de-cision-making level.
●Promoting the implementation ofthe Company's climate change-re-lated strategies and carrying outrelevant work according to theshort, medium, and long-term cli-mate change plans;
●Identifying and managing climatechange risks and opportunities,clarifying the impact of climatechange on the Company, and de-veloping targeted response strate-gies;
●Breaking down climate changeindicators and goals, coordinatingvarious departments to carry outthe work on Climate Change Tack-ling, and regularly reporting onprogress towards goals.
The Strategy Committee as a
Board-level committee actsas the decision-making bodyand is responsible for
The ESG PromotionCommittee, as themanagement body, isresponsible for
The ESG Special WorkingGroup, as the execution body,is responsible for
Strategy
In accordance with the Opinions of the CPC Central Committee and the State Council on Comprehensively and CorrectlyImplementing the New Development Concept and Engaging in Carbon Peak and Neutrality and the Action Plan for Carbon Peakby 2030, the Company has developed the Kweichow Moutai Co., Ltd. Action Plan for Carbon Peak and Neutrality, (hereinafterreferred to as the "Plan") based on the current carbon emission status and reduction potential, clarifying the implementationroute and measures for the dual carbon strategy.In 2024, following the requirements of Guidelines No. 14 of the Shanghai Stock Exchange for Self-Regulation of Listed Companies- Sustainability Report (Trial) and referring to the climate-related sustainable disclosure standards issued by the InternationalFinancial Reporting Criterion
(IFRS S2 for short), the Company actively carried out climate change scenario analysis. In lightof its actual circumstances, the Company has selected three highly contrasting scenarios - SSP
1-2.6, SSP2-4.5, and SSP5-
8.5 - developed by the Intergovernmental Panel on Climate Change (IPCC). By analyzing climate risks and opportunities across
di?erent scenarios and timeframes, the Company conducts a comprehensive assessment of the potential impacts of climatechange, identies climate-related opportunities, and formulates forward-looking strategies to address climate change.
Based on the actual implementation of climate change risk management work and in conjunction with the dual carbonaction plan, the Company comprehensively considers the urgency of climate risk evolution, the gradual nature of technicalimplementation cycles, and the systematic coordination of strategy goals. Climate risks are categorized into short-term, medium-term, and long-term risks to facilitate the orderly development of risk response work and enhance management e?ectiveness.
Based on the selected di?erent climate scenarios, the Company conducts climate change risk identication and assessment,categorizing climate risk types into physical risks and transition risks. It comprehensively reviews the potential climate risks thatmay be faced in the Company's raw material production, production operations, logistics transportation, and store operations,assessing the likelihood of risk occurrence, impact severity, and adaptability, and taking targeted response measures tocollaboratively address climate change risks with upstream and downstream partners.
Scenario Selection
Climate Risk Time Frames
Temperature ScenarioPhysical Climate ScenarioTransitional Climate ScenarioGreater than 3°CSSP5-8.5/2°C-3°CSSP2-4.5/Less than 2°CSSP1-2.6
Time FramePeriodShort-term2025-2030Medium-term2031-2040Long-term2041-2060
It is an independent international standard-setting organization, established by the International Financial Reporting Standards Foundation, and o?ciallylaunched on November 3, 2021, at the 26th United Nations Climate Change Conference. Its aim is to develop sustainability reporting standards that arealigned with the International Financial Reporting Standards (IFRS).
Climate-related Sustainability Disclosure Standards.
Shared Socioeconomic Pathways (SSPs) scenarios.
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6059About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Identication and Response to Climate Change Risks
PhysicalRisk
Acute Risk
●Extreme events such as heavy rainfall,high temperatures, mudslides, andwildres will a?ect normal operations;
●Damage to infrastructure such aspower supply, water supply, gas supply,and roads will a?ect raw materialssupply, logistics distribution, and energysupply, leading to cost increases aswell as reduced production capacityand performance indicators.
●Establish a real-time ecological environment monitoring system for the ChishuiRiver Basin and production areas to provide timely warnings for climatechange factors that may trigger acute risks, allowing for proactive responsemeasures to be taken;
●Develop emergency plans for extreme weather, establish a workingmechanism for responding to extreme weather, and conduct regularemergency drills;
●
Develop targeted workwear standards, reasonably set up retaining walls inhigh slopes and landslide-prone areas, and establish decentralized watersupply pump stations and supporting dual-circuit power supply systems;
●Carry out regular geological and engineering condition monitoring;
●Conduct regular cleaning of natural streams and drainage channels in thezone.
ChronicRisk
●Chronic changes in the climateenvironment will lead to changes in thequality and avor of main ingredientssuch as sorghum and wheat, distillingmicrobial environments, and waterenvironments and quality, therebya?ecting the quality and avor of theliquor.
●Establish a strategic reserve mechanism for raw materials;
●Continue to closely monitor the trend of global warming and conduct in-depthresearch into its potential impacts on food production;
●Carry out basic research on microorganisms, and determine the basiccharacteristics of microorganisms in Kweichow Moutai's core productionareas;
●Conduct conservation research on important raw materials involved in theCompany's production to understand their suitable growth conditions;
●Develop emerging water purication technologies such as bank ltration toensure the safety of distilling water.
TransitionRisk
Policy andLegal Risk
●The tightening regulations on the riverbasin environment will restrict the useof the water in the Chishui River.
●Conduct water footprint analysis and targeted research on reducing waterconsumption, to reduce the probability of impacts on products;
●Continuously strengthen ecological governance work in the Chishui Riverbasin.
●
The gradual implementation of policiessuch as carbon trading, carbon taxes,and environmental taxes necessitatesthe imperative transition to green andlow-carbon practices, imposing higherrequirements on Kweichow Moutai'senergy-saving and emission-reductione?orts.
●Follow global climate policy trends;
●
Develop and implement carbon reduction plans;
●
Improve the energy-saving and emission-reduction plans for production andoperation processes.
●
Regulators have higher requirementsfor the accuracy of environmental datareported by companies, increasingthe pressure and compliance risksof Kweichow Moutai's environmentalinformation statistics.
●Strictly adhere to compliance requirements for information disclosure;
●
Improve the construction of environmental monitoring platforms.
Technical
Risk
●
With the government's strictercontrols on the energy consumptionof manufacturers, Kweichow Moutaineeds to allocate more costs forenergy conservation and consumptionreduction in its production andoperations.
●Continuously promote the research and development of low-carbon energy-saving technologies;
●Adopt low-carbon environmental protection facilities;
●Optimize distilling processes and technologies, and develop a circulareconomy model.MarketRisk
●The market's preference for greenbrands and products is becomingincreasingly evident, adding pressureto Kweichow Moutai's low-carbonproduction and operations.
●Combine full lifecycle carbon footprint assessment to methodically reducecarbon emissons.
●Implement lightweight and green transformations for packaging materials;
●
Choose more green and low-carbon suppliers.
Reputation
Risk
●
Failure to meet the expectations ofstakeholders regarding climate changeinitiatives may result in negativeimpacts on Kweichow Moutai'sreputation.
●
Strengthen communication with stakeholders to understand and respond totheir demands;
●
Promote the Company's progress in green and low-carbon initiatives, such asgreen packaging, sustainable procurement, and circular economy practices;
●Regularly disclose the Company's emission reduction measures and theire?ectiveness.
The Company has established a climate change risk management system, integrating climate change risk management into theoverall risk management framework to ensure that climate risk factors are considered in major business decisions. In addition,the Company proactively explores opportunities related to climate change and seeks ecological value-added paths.
In the current context, energy-saving and low-carbon technologies aredeveloping rapidly. Utilizing emerging technologies can optimize energymanagement in the production and operation processes, improveresource and energy utilization efficiency, and reduce the Company'soperating costs.Global customers are increasingly focusing on low-carbon productconsumption. By tracking changes in customer demand and leveraginggreen products and green factories, market competence can beimproved, and the share of the green consumption market can beexpanded.With the global emphasis on climate change, ecological protection e?ortshave been strengthened in various regions, benefiting the ecologicalenvironment of the Chishui River Basin. Therefore, better and morestable foundational conditions can be obtained for the distilling of Moutaibaijiu.Collaborating with suppliers, distributors, and other upstream anddownstream partners in the value chain to promote the greentransformation of raw material acquisition, production operations,logistics, and transportation can enhance the resilience of value chaindevelopment.The government has introduced support policies to promote thegreen transformation of enterprises and respond to climate change,such as tax incentives and financial subsidies. Actively respondingto the national "dual carbon" strategy, increasing efforts in energyconservation, emission reduction, and ecological protection may lead togovernment funding support or subsidies.With the growing global attention to climate change, the green nancemarket is rapidly developing, including nancial products such as greencredit, green bonds, and green investment funds, which may acceleratethe green low-carbon transformation and provide green financingopportunities.
Climate Change Opportunities
Opportunity Identication ResultsOpportunity Description
Opportunities to Reduce
Energy ConsumptionResourceE?ciency
Products
andServices
Industry Development
Opportunities
Distilling Environment
Opportunities
EcologyOptimization
Value Chain Cooperation
Opportunities
ValueChain
Synergy
Government
Relations
Government Support
Opportunities
FinancingOpportunities
Green FinanceOpportunities
RiskType
Risk DescriptionMitigation Measures
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportCaseKweichow Moutai was invited to participate in the COP29 China Pavilion side eventIn November 2024, the 29th Conferenceof the Parties to the United NationsFramework Convention on Climate Change(COP29) was held in Baku, Azerbaijan,where the Baku Climate Solidarity Pactwas reached, setting multiple climatenancing goals and accelerating the globalresponse to climate change. As an invitedenterprise at the COP29 China Pavilionside event, Kweichow Moutai showcasedits important practices in the ecologicaleconomic value transformation.
Kweichow Moutai incorporates climate risks into the Company's overall risk management process, establishing a systematicprocess for risk identication, assessment, response, and improvement to e?ectively manage and control climate-related risks,reduce their impact on company operations, and seize opportunities brought by climate change, promoting the enterprisetowards a greener and more sustainable direction.
Company leadership was invited to participatein the COP29 China Pavilion side event
We integrate the geographical characteristics of the Moutai production region andthe distilling ecosystem to conduct climate risk identication at least once a year,focusing on analyzing the impact of extreme weather, water source changes, andother factors on raw material supply and production processes. Based on theseassessments, we compile a climate risk inventory.
Considering the distilling production cycle, we classify and stratify identiedclimate risks, employing quantitative models to evaluate the potentialimpact of extreme weather and temperature fluctuations on productione?ciency, raw material quality, and supply chain stability, thereby providinga scientic basis for decision-making.Based on the evaluation results, we develop full-value-chain response strategies for di?erentlevels of risk and establish risk warning indicators. Through technological innovation andprocess optimization, we mitigate the impact of climate risks on production while enhancing theclimate resilience of the distilling ecosystem.
We regularly review and optimize the climate risk managementprocess, leveraging cutting-edge technologies such as climateforecasting to continuously improve the scientific rigor andadaptability of risk management. This ensures that the processremains effective in responding to the ever-changing climateenvironment.
Impact, Risk, and Opportunity Management
Metrics and TargetsTo e?ectively respond to the national carbon peak and carbon neutrality strategy, and to implement climate risk managementand supervision mechanisms, the Company has set emission reduction targets for each stage based on the plan, providing clearguidance for climate change work.
RiskAssessment
RiskResponse
RiskManagementImprovement
RiskIdentication
The scope of green electricity usage in the plant area:
100%
coverage.
The year 2020 serves as the baseline year for the national emission reduction targets.
2024 Emission Reduction Target
Emission Reduction TargetAchieved Progress
AchievedReduce comprehensive energy consumption per unit of industrialoutput by
14%
compared to 2020
2025 Emission Reduction Target
Medium and Long-term Emission Reduction Target
AchievedDecrease carbon dioxide emissions per unit of industrial output by
19%
compared to 2020
Achieved
Achieved
Reduce comprehensive energy consumption per unit of industrial output by
20%
compared to 2020Maintain the proportion of renewable energy consumption in total energy consumption remained at
7%
or above,and
100%
coverage of green electricity at the Moutai production area and Heyixing production area
Achieve carbon peak before 2030, with carbon emissions per unit of industrial output value reduced by60%
compared to 2020
Renewable energy consumption reaches
7%
of the total energy usage
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance ReportThe Company took the lead in drafting the industry's carbon-related standards, the Requirements of the GHG EmissionsAccounting and Reporting for Baijiu Enterprise (T/CBJ 2206-2024) and the Product Carbon Footprint Evaluation Specication forBaijiu (T/CBJ 2207-2024)
, which had been o?cially released in 2024.Since 2018, the Company has continued to promote greenhouse gas emissions verication actions, systematically analyzed thedetails of carbon emissions each year, and formulated targeted carbon reduction strategies based on the setting of phased goals(please refer to the "Energy Conservation" section for details on the progress of goal implementation and emission reductionpractices). In the past three years, the carbon dioxide emission intensity per unit of the industrial output value of the Companyhas shown a continuous and steady decline.
GHG Emissions (Scope 1 + Scope 2)
IndexUnit20242023Direct GHG emissions
(Scope 1)
tCO
e287,811244,895Indirect GHG emissions(Scope 2)
tCO
e2,5369,883Total GHG emissions(Scopes 1, 2)
tCO
e290,347254,778GHG emissions intensity(Scopes 1, 2)
tCO
e/1 million units ofindustrial output
2.912.95
GHG Emissions (Scope 3)
Calculation basis: GHG emissions are veried by a professional third-party organization in accordance with ISO 14064, IPCCguidelines, the Guidelines for GHG Emissions Calculation Methods and Reporting in Food, Tobacco, Alcoholic Beverage,Beverage and Refined Tea Enterprises (Trial), GHG Calculation System: Code of Conduct for Enterprise Calculation andReporting, as well as other applicable regulations.
Category 1 - Purchased goods & servicesCategory 3 - Energy and fuelCategory 4 - Upstream transportation & distributionCategory 5 - Waste generated in operationsCategory 7 - Employees commutingCategory 9 - Downstream transportation & distributionCategory 12 - Treatment of end-of-life sold products
https://www.cada.cc/Item/1453.aspx
Reason for increase in Direct GHG emissions (Scope 1): Increase in natural gas use due to increase in production output in 2024.
Reason for decrease in Indirect GHG emissions (Scope 2):Increased purchase of green electricity in 2024.
Product Carbon Footprint
In 2024, the Company referred to the Guidelines for GHG Emission Calculation and Reporting in Industrial Enterprises, GB/T 24067-2024, and ISO 14067:2018 GHGes - Carbon Footprint of Products - Requirements and Guidelines for Quanticationto improve the carbon footprint assessment of the Company's core products and issue a carbon footprint assessment report,aligning the assessment approach with international mainstream life cycle assessment (LCA) standards(ISO 14040 and ISO14044).The Company conducts a full life cycle carbon assessment of core products, including carbon footprint assessment andcalculation at all stages such as Raw material production, Manufacturing operations, Transportation and logistics operations,Distribution and store operations and Product disposal stage, further identifying carbon reduction potential at each link,laying the foundation for formulating reduction plans at each stage, setting carbon footprint reduction targets, and promotingdecarbonization in the supply chain.
Core Products
lifecycle carbon footprint calculation results(Expressed as proportion of carbon emissions)
(45.96%)
(39.2%)
(5.09%)
(2.72%)
(7.03%)
Raw material
production
Manufacturing
operations,including suppliers
Distribution andstore operations
Transportation andlogistics operations
Product disposal
(22.85%)
Grain (includingtransportation)
(23.11%)Packaging materials(including transportation)
Core products refer to Kweichow Moutai baijiu ( Moutai Flying Fairy (Feitian).
In the carbon footprint measurement, carbon emissions are calculated based on the carbon dioxide equivalent emitted by each bottle of product at eachstage, and the percentage data are the proportion of carbon dioxide equivalent emissions of each bottle of product in each stage.
Indirect GHG
emissions(Scope 3)
76.43%
15.87%
3.29%
1.63%
1.59%
1.17%
0.02%
(39.2%)
Production
(5.09%)
Finished baijiutransportation
(2.72%)
Distribution and
operations
(7.03%)
Waste disposal
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportThrough a comprehensive analysis of the factors a?ecting the carbon footprint of core products, the Company identied thecarbon reduction potential at each stage and developed a full life cycle carbon reduction plan covering core product raw materialproduction, core production, facilities eet, routes and load management, all distribution centres, etc. , achieving good resultsin various aspects of production operations. (For details on the carbon emission reduction plan, please refer to the "EnergyConservation" section)In 2024, the Company invited engineers from the Chinese Research Academy of Environmental Sciences to conduct onlinetraining on carbon footprint accounting for packaging materials suppliers, enhancing suppliers' environmental awareness,and building a greener, low-carbon, and sustainable supply chain. Addionally, we required core packaging materials suppliersto provide energy data and carbon emission data, conducting energy consumption surveys on over 50 packaging materialssuppliers, laying a foundation for the Company to explore suppliers' carbon reduction potential, expand the assessment scope,and promote supply chain emissions reduction.
Carbon Footprint Target and Progress:
Target：
By 2024, reduce carbon dioxide emissions per unit of product by2%
compared to 2020.
2024 Progress: Carbon dioxide emissions per unit of product decreased by3%
compared to 2020, achieving the year's target.
E?cient Resource UtilizationThe Company focuses on ve aspects: "water" "energy and carbon" "gas" "sound" and "solid waste", continuously improvingthe integrated monitoring network for the ecological environment. By e?ciently utilizing resources and energy, promoting theuse of renewable and environmentally friendly packaging materials, and exploring the application of renewable energy, theCompany constantly innovates new approaches, technologies, and pathways for green development, continuously solidifyingthe ecological foundation of high-quality development.
Adhering to the philosophy of energy conservation and environmental protection, Kweichow Moutai enhances its managementof the energy system, actively promotes the research, development, and application of energy conservation and emissionreduction technologies, and expands the utilization of renewable energy, striving to establish itself as a benchmark enterprise inthe eld of energy conservation and environmental protection.
Energy Management SystemStrictly complying with relevant laws and regulations such as the Law of thePeople's Republic of China on Energy Conservation, Kweichow Moutai has put inplace some institutional documents such as the Energy Management Manual, theEnergy Operation Management Regulations, and the Energy Data ManagementRegulations. It conducts energy management work following the principles of law-based management, technological progress, consumption reduction, efficiencyincrease, effective supervision, and sustainable development. In 2024, KweichowMoutai underwent the energy conservation diagnosis organized by the GuizhouProvincial Development and Reform Commission, as well as the energy supervisionorganized by the Zunyi Bureau of Industry and Science and Technology, furtherclarifying the Company's energy consumption situation and energy conservationachievements, and pointing out the direction for the Company to carry out renedenergy management.In 2024, Kweichow Moutai successfully passed the recertication audit of the GB/T 23331-2020/ISO 50001:2018 Energy Management System, ensuring the normaloperation of the energy management system.
Energy ManagementSystem Certicate
Energy Conservation
Case
Kweichow Moutai's First "Zero-Carbon" Conference Realized,Demonstrating Corporate Green Commitment
In December 2024, the company hosted the Procurement and Supply Chain Conference. Through evaluation andcalculation by a third-party professional organization, the 87.62 tCO2e of greenhouse gases generated duringthe event were fully o?set. The company was awarded a "Carbon Neutrality" certicate, marking the successfulimplementation of rst "zero-carbon" conference. To achieve this goal, the company adopted diversied carbonreduction measures:
●?Used zero-carbon paper and tissues; ●?Created guest credentials and desk calendar gifts using "seed paper" (plantable seed paper), and employedeco-friendly biodegradable materials for gift handbags; ●?Designed reusable trophies for outstanding suppliers using aerospace-grade aluminum and crystal. Forproduction, energy-e?cient engraving techniques with lower carbon emissions were prioritized over traditionalcasting and forging processes;
●Issued environmental advocacy through eco-friendly reminder cards placed in guest rooms.
Procurement and Supply Chain Conference Site
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Improve the energy management system, coordinateresource allocation, and ensure successfulimplementation and smooth operation of the system;Carry out research into multiple energy-savingtechnologies, including feasibility studies on theapplication of electrode boilers, CO
heat pumps,high-temperature heat pumps, and flash evaporationsystems, dual circulation water cooling and waste heatrecovery system for baijiu-making, and an information-based steam supply network system;Expand the Company's electricity load capacity and signlong-term green electricity procurement agreements withpower trading centers to meet energy transformationneeds.Use new energy-saving electromechanical equipment.
Develop the Planning and Implementation Plan of Green Logistics,implementing green logistics measures in six key areas: endproduct warehousing and distribution system, grain warehousingand distribution system, trunk transport, intelligent platform, greenlogistics highway port, and green park;Adopt an intelligent warehouse management system to achieveprecise inventory positioning and e?cient management, improvingthe space utilization efficiency, reducing storage costs, andminimizing the operation routes of handling equipment;Increase the use of clean energy transport vehicles, ensure thatthe proportion of clean energy transport vehicles exceeds 20% inthe transport of baijiu lees.Use advanced warehouse equipment to automate storage,conveyance, and sorting; Use intelligent means to dispatchtransport vehicles to reduce the number of trips and waiting timefor motor vehicles, thus reducing energy consumption and carbonemissions;Strive to build a new packaging strategy layout featuring"internal and nearby", "convenient and efficient" and "greenand environmentally friendly"; encourage packaging materialsuppliers to establish subsidiaries within Guizhou Province toreduce transportation distance and lower packaging materialtransportation emissions.
Promote the action of glass bottle recycling,carry out pilot projects for the recycling andresource utilization of packaging materialssuch as glass bottles in Hefei and Chengdu,and gradually increase the resource utilizationproportion of recycled bottles;Store Operation enhance employees' environ-mental awareness by convening work meetings,conducting training on environmental protection,and playing promotional videos through multi-media;Organize employees to sign initiatives suchas the Energy Conservation and CarbonReduction, Green Development, andEnvironmental Protection, guiding them topractice green and low-carbon lifestyles andwork patterns.
Energy Conservation and Emission Reduction Initiatives in Di?erent Stages
Continuously using organic and green fertilizers toincrease soil organic matter content, and strengthen thesoil's carbon sequestration;The sorghum base promotes a local storage andcollection approach, where grains are delivered to nearbycollection points, reducing energy consumption andemissions from long-distance transportation, shorteningtransit times, and minimizing grain loss;Wheat suppliers are required to primarily use low-emission transport such as rail transport from basewarehouses to transit warehouses, reducing carbonemissions during transportation;Revise the Packaging Materials Supplier ManagementGuidelines, incorporate ESG into the supplier evaluationsystem, and encourage suppliers to actively engagein green and low-carbon transformation activitiessuch as energy conservation and emission reduction,environmental research and development, productionprocess improvements, energy use optimization, greenprocurement, and sustainable printing. Over the past twoyears, three packaging materials suppliers successfullyapplied for national-level green factory, and six supplierssuccessfully applied for provincial-level green factory
Rawmaterialsproduction
Manufacturingoperations
Transportationand logistics
Distributionand storeoperations
Energy Conservation and Carbon Reduction InitiativesKweichow Moutai identies and evaluates energy utilization in di?erent stages, including raw material production,manufacturing operations, transportation and logistics, distribution and store operations. It spares no effortto implement energy conservation initiatives by developing energy conservation technologies, optimizing theproduction process, upgrading equipment to energy-saving types, and improving the energy structure.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Case
Research and Development of Energy Conservation TechnologiesEnergy Consumption
Considering that the traditional distillationand cooling process of baijiu-makingleads to high energy consumption andinsufficient utilization of heat, this projecthas designed and developed a set ofdistillation and cooling equipment anda control system suitable for the Jiang-avor Baijiu distillation process based onthe dual circulation waste heat recoverytechnology, which has realized the stagedrecovery of waste heat after the distillationprocess.
Compared with the original method ofsteam supply with a gas boiler duringthe same period, the energy-saving rateof a single shift under the heat pumpsolution can be higher than 40%. Thedemonstration project is expected toannually reduce carbon emissions byabout 370 tons of CO
e, and the carbonreduction potential is expected to reach73,000 tons of CO
e by 2030, signicantlyreducing natural gas consumption andcarbon emissions.
The heat recovery rate reaches 89.49%,and the heat utilization rate reaches98%. Compared with the traditional air-cooling method, the power consumptionis reduced by 42.5%. It is expected thatthe application of the project results willreduce the annual carbon emissions by5,700 tons of CO
e.
IndexUnit20242023Non-renewable energyconsumption
tce171,186 144,174Renewable energy
consumption
tce14,827 11,270Comprehensive energy
consumption
tce186,013 155,444Comprehensive energyconsumption intensity
tce/1 million units of industrial
output
1.861.80Raising Energy Conservation AwarenessKweichow Moutai regularly organizes training sessions and publicity activities on energy conservation to raise its employees'energy conservation awareness.
Kweichow Moutai organizes energy management trainingIn 2024, the Company organized energy management training, which included basic knowledge of energyconservation management, guidance on management business, promotion of systems, publicity of laws andregulations, standards, etc., covering the Company's main production units such as baijiu-making, Daqu-making,packaging, and blending and storage, as well as functional departments related to energy management. Thisfurther enhanced the business capabilities of the Company's equipment, energy, and measurement managementpersonnel, and improved the employees' knowledge literacy in energy management.
Energy Management Training
Research on Green Technologiesfor Energy Conservation, Consump-tion Reduction, Carbon EmissionReduction, and Pollution Reductionin the Distillation System of Ji-ang-avour BaijiuDemonstration Research on theComprehensive Utilization Path ofEnergy Conservation, E?ciency Im-provement, and Carbon Reductionin the Distillation System Based onCarbon Dioxide Heat Pump Tech-nology
R&DProjectSteam is produced by fully utilizing thecarbon dioxide heat pump technology toextract heat from ambient air and usingthe heat pumps for waste heat recovery toabsorb heat from the hot water after thedistillation process.In 2024, the R&D and application projectof carbon dioxide heat pump technologywas shortlisted in the fth batch of nationalkey promotion low-carbon technologycatalogue.
Description
EnergySaving
E?ect
Reason for increase in non-renewable energy consumption: Increase in natural gas use due to increase in production output in 2024.
Increase in renewable energy consumption due to increased purchase of green electricity in 2024.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportWater ManagementThe Company strictly adheres to the Water Pollution Prevention and Control Law of the People's Republic of China andthe Water Law of the People's Republic of China, integrating water resource management into the responsibilities of theenvironmental governance framework. It continuously promotes the transformation, upgrading, and innovative exploration ofwater-saving processes, and continuously improves the level of water resource management.Water Resource Management
Water Footprint Calculation
In 2024, the Company further optimized the water resource management system. We supplemented the water managementcontent in the Energy Management System and revised the water resource consumption standards based on the annualwater usage in 2023, clarifying the "quota" for water usage in each unit and standardizing the water management systems andstandards at all stages. In addition, the Company established a water usage assessment management system, improved thewater resource assessment mechanism, and claried the assessment methods for individual and unit water usage, promotingimprovements through assessments to enhance water-saving e?ciency.
In accordance with the national policy of "water conservation rst" and relevant requirements such as the Water ConservationRegulations, in 2024, the company engaged a third-party organization to conduct a water footprint assessment of its coreproducts. In accordance with applicable laws, regulations, and standards such as GB/T 33859-2017/ISO 14046:2014Environmental Management—Water Footprint—Principles, Requirements, and Guidelines, we conducted systematic vericationof the water scarcity footprint and water degradation footprint of our core products. This work has identied the "key nodes"of high water consumption in various stages of production, daily life, and water supply, and implement targeted measuresaccordingly, optimizing water conservation management.
Target achievement progress:
Short-term target: Reduce water consumption per unit of product by5%
in 2024 compared to 2023.Medium to long-term target: Reduce water consumption per unit of product by20%
by 2026 compared to 2023.
The short-term goal was achieved: Water consumption per unit product in 2024 was reduced by
7.28%
compared to the data in 2023
The Company's water-saving targets:
Core Products Water Footprint Measurement(Expressed as proportion of freshwater consumption)
Waterintake
(
91.42%
)
(
8.58%
)
(
56.17%
)
(
23.30%
)
(
11.95%
)
(
7.68%
)
(
0.90%
)
Crude Baijiu making (13.64%)
Steam Supply (25.81%)Energy station (11.92%)Production material distribution
workshop (0.21%)Sewage treatment and altar
washing plant (1.81%)
Daqu making (2.28%)Crude Baijiu storage rooms
(0.50%)
Sanitation and hygiene (23.30%)
Cafeteria and o?ce (7.92%)
Landscaping (4.03%)
Blending (0.50%)Packaging (7.18%)
Cafeteria and o?ce (0.80%)
Landscaping (0.10%)
In the water footprint measurement, the percentage data are the proportion of freshwater consumed per bottle in each process.
Water Plant
waterpuricationtreatment
Finished
liquorproduction
Raw
liquorproduction
Primary and
secondaryproduction
facilities
Mainproductionprocesses
AncillaryproductionfacilitiesCafeteria,o?ce andlandscaping
Cafeteria,o?ce andlandscaping
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportIn 2024, the Company formulated the Water Use Enhancement Action Plan (2024-2026) based on the results of the waterfootprint assessment. This plan details a task list for water use enhancement across all operations and species water-savingmeasures at each stage to improve water resource management.
The Company actively utilizes reclaimed water to replace fresh water, reducing the amount of fresh water used and promotingthe e?cient recycling of water resources.
In 2024, the Company continued to transform the boiler water treatment process, adopting the "reverse osmosis +concentrated water reuse" process, reducing the boiler water treatment load by 24%.
In 2024, the Company conducted water conservation training and promotion for all employees, covering topicssuch as the situation of energy-saving and water-saving, national laws, regulations, and standards, awarenessraising and knowledge of water conservation for main production units including distillation, daqu making,packaging, and blending and storage, e?ectively enhancing employees' awareness of water conservation.
Reclaimed Water Reuse
Adopt the "reverse osmosis + concentrate water reuse" method to replace theoriginal sodium ion softening processBoiler Water Treatment Process Improvement
Develop a card-swiping shower promotion plan and continuously promote theconstruction of the card-swiping shower projectRenovate water-saving xture, launch a pilot program for centralized laundry ofwork clothes for liquor production and distillingCarry out top-level design planning for water conservation
Improvement of End-use Water MethodsExploration of Water-saving Methods
By implementing the water-saving measures, water resourceusage was reduced by
10.39%
during the production phase.
By implementing the water-saving measures, water resource usagewas reduced by
1.73%
during the non-production phase.
In 2024, the company actively promoted the construction and development of reclaimed water reuse. Based onthe pilot trial of "reclaimed water reuse" conducted in the 27th workshop of liquor production, a feasibility studyreport on reclaimed water reuse was completed.
CasePromotion of Reclaimed Water Reuse
CaseBoiler water treatment process transformation
CaseEmployee Water Conservation Promotion
Water-savingSegment
Water-saving
Measures
Achievements
in 2024
Water-saving Measures in Various Segments
Production segmentNon-production segment
Detect and maintain leaks in reghting pipelines in the Baijiu warehouse areaReorganize and renovate warehouse area pipelines, separating clean, domestic,and greening pipelines from existing reghting pipelines
Improving Water Supply E?ciency
Conclude the preliminary "Pilot Project on Reclaimed Water Reuse" and furtherdevelop a feasibility study and promotion plan for its expansion
Conduct water-saving campaigns to enhanceemployees' awareness of water conservationReduce waste through monitoring andevaluation methodsImplement water-saving devices
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Water Resource Management DataCategoryUnit20242023
Year-on-yearvariable ratio
Reuse of reclaimed water10,000 m
24.24 19.70 23.05%Proportion of reclaimed
water
/3.07%2.32%32.32%Extraction of freshwater10,000 m
635.11658.50 -3.55%Freshwater extractionintensity
10,000 m
/1 million units ofindustrial output
0.00640.0079 -19.43%Total water extraction
10,000 m
635.11658.50 -3.55%Water recycling rate
/85.45%87.07%-1.86%Consumption of
freshwater
10,000 m
789.65847.96-6.88%Freshwater consumptionintensity
10,000 m
//1 million units ofindustrial output
0.00790.0098 -19.25%Total water resource
consumption
10,000 m
813.89867.66-6.20%Water resourceconsumption intensity
10,000 m
//1 million units ofindustrial output
0.00820.0098 -16.77%
Freshwater extraction volume + Alternative water extraction volume.
(Recycled volume / (Recycled volume + water extraction volume)) * 100%.
Consumption of freshwater Includes Extraction of freshwater and Municipal water consumption.
Total water consumption includes fresh water consumption and reuse of reclaimed water, and this indicator has been revised for 2023.
Water Pressure AssessmentThe Company values water risk management by identifying, assessing, and quantifying potential water risks such as waterscarcity, water quality pollution, and ooding, ensuring the sustainable use and development of water resources.In 2024, the Company introduced the World Wildlife Fund (WWF) Water Risk Filter to assess water risks across all its factoriesfrom three dimensions: physical risk, regulatory risk, and reputation risk. The assessment revealed that the overall regulatoryrisk faced by the Company is low, while the reputation risk and physical risk are moderate.
By utilizing internationally recognized water risk assessment tools, the Company has initially identied potential water risks itmay face and has developed targeted measures to track implementation and e?ectiveness, e?ectively addressing water riskchallenges.In addition, the Company continued to conduct water ecological carrying capacity assessments in the Chishui River Basin. Weinvestigated the water quality and ecosystem status within the basin and established a SWAT model for dynamic analysis ofwater quality and microorganisms in 2024. Through longitudinal assessments of indicators such as COD and DOC in water, weidentify the impact and risks of factory production on the water environment and further develop targeted solutions.
●
Environmental factors,socioeconomic factors
●Media and other reputationrisks
●Water resource availability,water resource quality
●Drought, Flood
●Ecosystem
●Regulatory policies andimplementation plans
●Water resource managementtools status
●Infrastructure
ReputationRiskPhysicalRiskRegulatory
Risk
Supplier Water ManagementThe Company actively advocates for suppliers to practice the concept of green development and has formulated the SupplierSustainable Development Implementation Method, clarifying the requirements for suppliers to implement water resourceprotection and recycling, and encouraging suppliers to carry out water-saving actions. Meanwhile, we collaborate with suppliersto continuously optimize water-saving strategies and improve the e?ciency of water resource utilization in the industrial chain.The Company has formulated the Optimization of Water Usage for Bottle Washing and Verication Test Plan for the Shelf Lifeof 500ml Moutai Baijiu (Milky Glass) Bottles, with collaboration from various departments to conduct tests on the current waterusage situation in the Packaging Plant, as well as improvements in production and storage by bottle suppliers. The study willexamine the impact of bottle washing machine parameters and bottle storage time on bottle cleanliness, providing a basis forreducing water usage in the bottle washing process of the Packaging Plant and suppliers, classifying and defining storageshelf life, minimizing water resource waste in the packaging materials washing process, and enhancing water e?ciency for theCompany and the industrial chain.
●The liquor bottle supplier has set a target to reduce the monthly average water usage per kiln by 5%in 2025 compared to 2024.
●2022 as the baseline, the goal is to achieve an average annual reduction of 1.5% in waterintensity by 2030.
Introducing the "underground pipewater delivery + sprinkler irrigation"technology, water savings reach30%-50% compared to large-scaleooding irrigation:
Raw Materials SuppliersWater-Saving Highlights of Suppliers
Packaging Materials Suppliers
●
Using water-based comprehensive wastewatertreatment equipment to achieve industrial waterrecycling;
●Optimizing data collection and water management;
●Introducing advanced pretreatment equipment toachieve the reuse of bottle washing wastewater;
●Reforming the kiln cooling system by installingcirculating water pumps to build a circulating coolingsystem for the reuse of cooling water;
●Actively researching and introducing new water-saving equipment and processes, such as drycleaning technology and deep wastewater treatmenttechnology, to promote water-saving technologyupgrades in the production process;
●When producing plant ber products (such as papertrays), ensuring that the key link in the dispersedpaddle treatment maintains a water circulation rateclose to 100%, thereby significantly saving waterresources for production.
ImplementingDiverseWater-SavingMeasures
SettingReasonableWater-savingTargets
Collecting naturalprecipitation, depositing itunderground, and reducingwater source loss;Utilizing a smart monitoringsystem to determine theamount and timing ofsprinkler irrigation;Adopting undergroundpiping to save arable land.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportMaintaining Relations with the CommunityThe Company maintains a good relationship with the community. We minimize impacts on the Chishui River and surroundingcommunities, establish a communication dialogue mechanism with the government and local residents, strictly implementregulatory requirements, and promptly address reasonable demands from community residents.In order to e?ectively address the ecological and environmental challenges of the Chishui River (Renhuai section) and promotethe ecological health and sustainable development of the watershed, the Company has established a joint prevention and controlmechanism with the Renhuai municipal government, coordinating the management of water resources, water environment, andwater ecology through a series of measures such as water resource management and pollution source monitoring, to maintainthe health of the Chishui River watershed ecosystem and ensure the continuous improvement of water quality in the ChishuiRiver watershed (Renhuai section).
CDP Water Questionnaire
Employees of the Company and volunteers conductedpatrols along the Chishui River using a five-step riverinspection method (river condition survey, observation ofphysical indicators, chemical indicator testing, biologicalindicator observation, and water-friendly behaviors). Theinitiative resulted in the collection of 19.37 kilograms ofwaste from the riverbanks, contributing to the protectionof the water quality and ecosystem of the Chishui River.
CaseLaunch of the Chishui River Protection Initiative
Chishui River Protection Initiative
In 2024, the Company actively completed the CDP questionnaire, scrutinizing its water resource management systems andprocesses against more stringent standards. This initiative prompted the Company to evaluate its operational proceduresand water usage across the upstream and downstream value chain, identify water-related risks it faces, and analyze its waterconsumption. As a result, the Company was able to precisely pinpoint areas with potential for water conservation. It advancedthe implementation of new water-saving technologies and processes in both production and non-production stages, furtherenhancing its understanding of water resource management and ensuring the stability of water intake and usage.
Green Packaging Materials
In 2024，the Company developed and pub-lished the Strategy for Lightweight and GreenPackaging Development
. We adhere to greendesign principles and the "3RlD" principle(Reduce, Reuse, Recycle, and Degradable),considering their impact on resources and theenvironment. Our goal is to minimize the overallnegative environmental impact of our manufac-turing processes. Additionally, the Company hasresearched and formulated the ImplementationPlan for the Reduction and Green Developmentof Packaging Materials to promote the imple-mentation of light weight, reduction, greening,and recycling of packaging materials, contribut-ing to the construction of a green industrial chainecosystem for packaging materials.
The Company regards the lightweight and reduction of packaging materials as an important strategic direction,continuously exploring packaging lightweight while ensuring product quality and consumer experience, andminimizing the packaging weight of products.
●Conduct research on the lightweight bottle project, with preliminary experimental results: achieve a reduction in theweight of the 500ml frosted glass bottle from 480 grams to 450 grams while maintaining bottle strength, therebyreaching the target of reducing the bottle weight by 6.25%.
●Optimize the product bill of materials and reduce accessories: fully eliminate the use of recognizers and box labelsin products, including Feitian, Zodiac, Premium, and Supreme products, reducing plastic usage by 382 tons;Under the premise of meeting consumer demand, a more scientic and convenient "6+3"
model was adopted topromote the reduction of bag allocation.
●Practice green concepts and promote the use of bamboo instead of plastic: replace pearl cotton base supportsand velvet with bamboo pulp paper trays in the development of new products such as Zodiac liquor, Moutai 1935,and Daqu 80s, continuously advancing the greening of color boxes.
●Optimize product design and material usage: the Moutai 1935 baijiu bag adopts a new design concept, simplifyingthe product printing process and using special paper for production, while eliminating the lm coating on thesurface of the bag.
Reduction and lightweight
Key work of the Implementation Plan forthe Reduction and Green Developmentof Packaging Materials:
Advocate for high e?ciency and low carbon,and promote the reduction and lightweight ofpackaging materials;Adhere to ecological priority and promotethe green and low-carbon transformation ofpackaging materials;Uphold green innovation and create asustainable packaging materials supply chain;Establish and improve systems andmechanisms to promote the greendevelopment of the supply chain.
Key work
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Carry bag congurations have been streamlined for greater exibility.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
On December 5, 2024, the Company announced two lists of scientic research projects featuring "open bidding forselecting the best candidates" at the 5th Synthetic Bio-Manufacturing Industrial Conference in 2024 - "Research onBaijiu Packaging Film Based on Bio-based Materials" and "Research on Baijiu Packaging (Bottle) Base made fromBio-based Materials", each funded with RMB 3 million.The Company actively embraces synthetic biology technology, leveraging an open innovation platform to connectindustry-university-research institute resources to develop biodegradable bio-based packaging materials, exploringalternatives to traditional fossil-based packaging materials. Relying on the "4T" innovation system of InformationTechnology (IT), Biotechnology (BT), Food Technology (FT), and Material Technology (MT), we deeply integratecutting-edge technology into ESG strategic practices, driving green upgrades in the industrial chain throughbreakthroughs in advanced technology, and accelerating our green transformation.
Case
Kweichow Moutai released the list of scientic research projectsfeaturing "open bidding for selecting the best candidates"
The Company continues to explore the feasibility of increasing environmentalprotection promotional content, and adding environmental protection logos,spreading the Moutai green development concept, while using labels topromote recycling to consumers, reminding them to recycle and reuse.In 2024, the Company actively explored the bottle exchange green recyclingactivities, fully motivating consumers' enthusiasm, allowing them to contributeto the sustainable development of the Earth while enjoying ne wine, furtherstimulating consumers' environmental awareness, and jointly building agreen and harmonious consumption environment.
Consumption of Packaging Materials*
The Company is increasing its research and development e?orts for green packaging materials, exploring the transformationand innovation of green packaging materials, and formulating and publishing institutional documents such as New ProductDevelopment Management Regulations, Packaging Material Technology Blacklist (Environmental Protection), List ofRestricted and Prohibited Packaging Materials, and Negative List of Packaging Materials for New Product Development,clarifying the principles for the research and selection of green packaging materials, and promoting the green transformationof the packaging materials supply chain.
Green development and waste reduction
Recycling
In 2024, the company developed the Implementation Plan for the Recovery Project of Empty Moutai Bottles based onthe Pilot Implementation Plan for the Recycling and Reuse of Moutai Glass Bottles. Pilot work was carried out in Sichuanand Anhui provinces to test the resource recovery and processing of empty bottles, laying a solid foundation for graduallyexpanding into the national and global markets and building a comprehensive ecological system for the resourceutilization of packaging materials.
Renewable Packaging Material & WasteReduction Progress
In 2024, 32.31% of the Company's packagingmaterials were derived from renewablematerial.Renewable Packaging Material Targets
Baseline Year: 2024Target Year: 2027Commitment: Achieve an 8 percentage-pointincrease in renewable packaging materialshare by 2027 compared to the 2024baseline.
Targets and progress
●Collaborate with ceramic wine bottle suppliers to advanceinnovation projects, piloting the use of permanent magnetscrew vacuum pumps to replace sliding vane pumps,resulting in a 25% reduction in energy consumption. Atthe same time, we are testing the feasibility of ultra-highpressure hollow grouting technology using resin moldsto replace traditional gypsum molds. Additionally, we areintroducing sintered silicon carbide thin-walled kiln xtures,which can save 4.5% in natural gas usage compared to theoriginal xtures.
●Promote a special project for improving the quality of bottlesfrom Jingqi Company, signicantly improving the pass rate,with the good product rate increasing from 40% to as highas 90%; increase the proportion of glass slag usage to 20%-30%, signicantly improving resource recycling e?ciency.
Key work
Packaging output has increased compared to 2023.
This year, the company conducted a comprehensive re-evaluation of 2023 packaging material data, expanding the statistical scope toa fully integrated framework.
Additionally, the Company has mandated its key packaging suppliers to achieve dual targets.
By 2027:
Request packaging suppliers including glass bottles, paper products, and bottle caps5%
reduction in comprehensive energy consumption per unit of industrial outputvalue against 2024 baseline
6%
increase in renewable energy utilization share against 2024 baseline
NameUnit2024
2023
Year-on-yearvariable ratioGlass bottlestons81,820.2371,117.6715.05%Color cardboardboxes
tons40,391.3235,679.6813.15%Ribbonstons80.9176.615.61%Metal bottle caps
tons1,070.33 799.0633.95%Plastic bottle capstons3,336.162,886.4815.58%Ceramic bottlestons11,676.2511,429.432.16%Cardboard boxestons13,511.2112,156.0411.15%Bagstons9,526.98 9,285.11 2.60%Totaltons161,413.39143,448.0712.52%* Note: The Company has disclosed all packaging material usage data in theperformance report.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportProtecting the Green Environment
The Company strictly adheres to the Environmental Protection Law of the People's Republic of China and other laws andregulations, ensuring the compliant disposal of waste and pollutants, and striving to reduce the negative impact of productionoperations on the environment. Adhere to the coordinated development of economy and ecology, and formulate documents suchas the Overall Plan for Building Xi Jinping's Ecological Civilization Practice Demonstration Base and Building the Company as aRole Model for Environmental Protection in the Industry, Environmental Protection Compliance Guidelines, and EnvironmentalProtection Management Regulations, to improve the ecological and environmental protection system, and actively constructproduction-living-ecological spaces that are intensive and e?cient, green and low-carbon, and characterized by clear mountainsand waters.Environmental ManagementThe Company establishes and improves the environmental governance structure, enhancing the management mechanisms forvarious environmental issues such as environmental management, energy, water resources, packaging materials, waste andpollutants, and biodiversity. In 2024, the Company released the Kweichow Moutai Co., Ltd. ESG Governance Framework
,strengthening environmental management responsibilities at all levels, and adding assessment rules to the EnvironmentalProtection Management Regulations. Relying on the system, environmental protection performance indicators are linked to theremuneration of senior management executives and executive employees, which lays a solid foundation for the Company'sgreen development.
●The Strategy Committee, as a Board-level committee, serves as the decision-making levelfor the Company's environmental governance, overseeing matters related to environmentalmanagement, including but not limited to water resource management, packaging materialsand waste management, carbon emission management, and other key ESG issues regardingstrategic direction, performance, guidance, supervision, and management of related risks.
●Meanwhile, the Chairman coordinates the Environmental Protection Committee to makedecisions and deployments regarding the Company's ecological and environmental protectionmanagement and performance, while the General Manager oversees the strategy andperformance of water resource management.
●The ESG Promotion Committee acts as the management level of the environmental governancestructure and establishes an Environmental Subcommittee responsible for approvingenvironmental management strategies, supervising the implementation process of strategies,assessing environmental performance related to energy, water resources, packaging materials,etc., and ensuring the consistency of environmental performance with the Company's overallbusiness strategy and sustainable development goals.
●The Office of the Ecology and Environmental Protection Committee, the Office of EmergencyResponse for Environmental Incidents and its emergency response teams, the O?ce of carbonpeak and carbon neutrality Management, and the Office of Water Resources Managementare responsible for the daily management and execution of related work, implementation ofenvironmental governance strategies, and improvement of environmental performance.
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
Decision-makinglevel
Manage-ment level
Executionlevel
The Company continuously improves its management system based onthe environmental management system, formulating control proceduresfor wastewater, air, noise, solid waste, waste oil, environmentalfactor identification and assessment, environmental monitoring andmeasurement, environmental impact of new, renovated, and expandedprojects, and environmental sanitation and greening, creating anenvironmental protection sector system map to comprehensively controlthe environmental management process and enhance the e?ectivenessof environmental management.
Environmental Management System Certication
Environmental Process Management
The Company actively expands information collection channels, obtaining stakeholder expectations and demands throughtelephone interviews and on-site communication, and utilizes the Key Success Factors (KSF) matrix tool to identify 7 corekey elements in the ecological environment management process, thereby efficiently allocating environmental managementresources and e?ectively enhancing the level of ecological environment management.
Environmental Protection Sector System Map
Moutai has been certied by the ISO 14001 Environmental ManagementSystem since 2001, and in 2024, the Company was still within the validityperiod of the environmental management system certification GB/T24001-2016/ISO 14001:2015, certication coverage exceeds 95%
.
In 2024, we did not experience any signicant environmental violations.First-levelClassicationSecond-levelClassication
TargetManagement
EnvironmentalCompliance
PollutionPreventionEnvironmental Protection Management Measures
Dual CarbonManagement
EnvironmentalGreening
EmergencyManagement
Assessmentand InspectionFirst-levelSystem (1)
Third-levelSystem (14)
Environmental Protection
Regulations on Environmental Protection
Target Management
Regulations on EnvironmentalProtection Compliance Management
Detailed Rules for Environmental Detailed Rules
Management of Construction ProjectsDetailed Rules for Post-management of Detailed
Rules Discharge Permits
Detailed Rules for the Management of Environmental
Detailed Rules Discharge Outlets and Signage
Solid Waste Control Detailed RulesEnvironmental Monitoring and MeasurementManagement Detailed Rules
Greening Maintenance Management Detailed RulesGreening Project Management Detailed RulesPest Control Management Detailed Rules
Environmental Protection InspectionManagement Detailed Rules
"Environmental Assessment Management Detailed
Rules"
Environmental Factor Identication and
Assessment Management Detailed Rules
Wastewater Control Detailed RulesAir Pollution Control Detailed Rules
Noise Pollution Control Detailed Rules
Regulations on Pollutant Control
Management
Regulations on Hazardous Waste
Management
Regulations on Carbon Emission
Management
Regulations on Emergency Management
for Sudden Environmental IncidentsEnvironmental Protection Inspectionand Evaluation Administrative Rules
Second-
levelSystem (8)
The scope of certication is calculated as a percentage of revenue.
Regulations on Environmental Sanitation
and Greening Management
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Emergency Managementfor Environmental IncidentsThe Company strictly complies withthe Environmental Protection Lawof the People's Republic of China,the Emergency Response Law ofthe People's Republic of China, andother laws and regulations. It regularlyconducts emergency drills andspecialized training activities basedon the Emergency Plan for SuddenEnvironmental Incidents.
In June 2024, the Company conducted an emergencydrill. We simulated a sewage leak caused by a brokenunderground sewage pipe, effectively enhancingemployees' emergency response capabilities, with goodresults from the drill.
Emergency Drill
Strengthen distilling ecological protection
New technologies, processes, materials, andequipment
Build a data management platform forenvironment monitoring
Ensure legality and complianceE?cient governance
Improve climate change managementReduce GHG emissionsIncrease the energy utilization rateIncrease the resource utilization rateFacilitate the recycling and utilization of wastematerials
Improve the environment management systemReduce pollutant emissionsEnsure compliant disposal of wasteEnhance the protection of distilling water sourcesImprove air qualityMaintain the stability of the micro-ecology in theproduction areaAssist in the green protection of the basin
Enhance pollution control
Promote e?cient utilization of
resources and energy
Promote green and low-carbon
development
Improve the environment monitoring
systemGreen tech innovation
Enhance the modern environmental governance system
Timely resolution of environmental issuesTimely elimination of environmental hazards
Case
Emergency Drill for SuddenEnvironmental Incidents
Compliant Emissions
The Company focuses on strengthening the source prevention line, enhancing process control, and solidifying end-point e?orts,comprehensively strengthening the comprehensive management capabilities of the three wastes, striving to minimize theenvironmental impact of pollutant emissions, and ensuring the legal compliance of the Company's waste emissions.
Wastewater Discharge ManagementThe Company strictly complies with the Water Pollution Prevention and Control Law of the People's Republic of China andother laws and regulations. We improve wastewater treatment e?ciency and implement discharge standards that are stricterthan national, local, and industry standards with the principles of grading and classication, classied treatment, and resourceutilization. The detailed information on wastewater discharge has been disclosed in the annual report.In 2024, the Company established four standard specications including the Technical Requirements for Brewing WastewaterTreatment, and two sewage treatment technologies obtained national patents, demonstrating the e?ectiveness of technology inempowering environmental management. In 2024, the Company had no negative environmental incidents related to water.
Management
Level
Facility Level
Wastewater Discharge Management MeasuresWe strengthened the management of the entire process of water resources, including "extraction,supply, use, and discharge", and created a company water balance chart.We developed the Renovation and Maintenance Plan for the Drainage Pipeline Network at MoutaiHeadquarters. In 2024, we renovated the pipeline network in Zone 1 of the old factory area.We systematically promoted the reuse of reclaimed water and the collection of early-stagerainwater, while enhancing the operation and management of the sewage treatment plants.We advanced the renovation of pipelines, construction, and renovation of sewage treatmentplants, large-scale storage reservoirs, and the establishment of standardized hazardouswaste storage facilities, continuously improving infrastructure and enhancing environmentalmanagement e?ectiveness.In 2024, our ve sewage treatment plants processed a total discharge of 2.1892 million tonsof water, achieving a compliance rate of 100%. We used 242,400 tons of reclaimed water andproperly disposed of 11,800 tons of sludge.
The Company focuses on theresource utilization, greening,and high-end utilization of by-products from the liquor industry.It has initiated a comprehensiveresearch and development projectfor the green and low-carboncomprehensive utilization of pitwater, striving to build a completerecycling system of resourceutilization at the source - greendevelopment in the process - endecological development at the end.
Comprehensive Green and Low-Carbon Pit-bottom
Water Utilization Project
Comprehensive green and low-carbon pit-bottom water utilization
Path 1: Conversion intoa biomass carbon source
Used as a carbon sourcefor the internal circulation ofsewage treatment plants andsurrounding municipal sewagetreatment plantsUsed as raw material for theouter packaging of alcoholicproducts or other productsUsed to develop proteinadditives
Green wastewater treatment
EngineeringtailwaterEcologicalactive water
Nitrogen, phosphorus,and di?cult-to-degrade compoundsThree-dimensionalwetlandUsed for research anddevelopment of productsbenecial to human health
Path 2: Production ofbiodegradable materialpolyhydroxyalkanoate (PHA)Path 3: Dilution of pit-bottomwater or use of biogas slurryfor cultivating fungi and algae
CaseGreen Upgrade of Sewage Treatment
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
Wastewater Discharge
Calculation: Wastewater discharge intensity = Wastewater discharge volume / industrial outputManagement of Exhaust EmissionsThe Company strictly adheres to the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution and other laws and regulations and has equipped each emission point with comprehensive environmental protectionfacilities to ensure stable compliance with emission standards for various types of exhausts. Nitrogen oxides, carbon monoxide,ozone, PM10, PM2.5, and other indicators have been monitored at ve air quality monitoring stations within the plant area. Wehave established a strict monitoring management system to provide a scientic basis for further optimizing production layout andadjusting pollution prevention strategies.In 2024, the emission rates and concentrations of various exhausts from the Company met the corresponding limit requirementsset forth in the Emissions Standards for Air Pollutants (GB16297-1996), with an excellent air quality rate of 98.36%. The detailedinformation on exhaust emissions has been disclosed in the annual report.
Dust generated fromconstruction andoperation sites
Nitrogen oxidesgenerated from boileroperations
Daqu-making dust
Oil fume management
Vehicle exhaust control
We strengthen the standardized management of dust from construction projectsand roadways in the demonstration zone, to strictly control the emissions of airpollutants from the source such as inhalable particles, lung-damaging particles,and ozone.The Company has been using natural gas, which is clean energy, as fuel forboilers, and installed continuous emissions monitoring systems for flue gas inboiler rooms to monitor nitrogen oxide emissions in real time.The treatment method for boiler ue gas involves a Low-NOxcombustion process,with the main pollutants being sulfur dioxide, nitrogen oxides, and particulatematter, all of which are discharged in adherence to emission standards.
The "3+3" plan for new energy vehicles in the factory area has been issued tosystematically advance green transportation, encouraging employees to use publictransportation for personal travel and adopt new energy vehicles. The proportionof pure electric new energy vehicles has continued to rise for three consecutiveyears, reaching 3,652 vehicles in 2024, accounting for 14.3% of the total.
IndexUnit20242023
Year-on-yearvariable ratioWastewater discharge
volume
10,000 tons218.92215.171.74%Wastewater dischargeintensity
10,000 tons/1 millionunits of industrial output
0.00220.0025-12%
Emission SourceExhaust Emission Management Measures
In accordance with the Emissions Standards for Air Pollutants (GB16297-1996),bag ltration measures are implemented for collection and treatment.Oil fume purication equipment has been installed in all canteens for treatment,and the equipment is cleaned three times annually.
Waste emission reduction target:
The sealing pit mud emission reduction target in 2024 was to reduce by20%
compared to 2023, which was achieved.
Management of Waste DischargeWe have strictly followed relevant laws and regulations including the Law of the People's Republic of China on the Preventionand Control of Environmental Pollution by Solid Waste, and developed the Solid Waste Control Procedure, Regulations on theManagement of Waste Materials Recycling, and Regulations on the Management of Hazardous Waste, to ensure a reductionin waste generation at the source and 100% compliant disposal of hazardous waste, promote standardized management andresource utilization of solid waste.In 2024, to further standardize the management of distilling waste from daqu-making and baijiu making and distilling, theCompany formulated and issued the Management Rules for Moutai Baijiu Distilling Waste of Kweichow Moutai Co., Ltd.(hereinafter referred to as the Rules), integrating the Rules into daily production and behavioral norms, organizing a total of 36systematic training sessions for relevant employees, and conducting employee assessments based on the content of the Rules,e?ectively standardizing the management of distilling waste in the workshop and promoting the reduction of distilling waste.
In terms of kitchen waste management, the Companymakes full use of online and offline publicity platformsto work tirelessly to promote laws, regulations, policies,and best practices against food waste. We launchedan initiative of "Fostering a New Culture of Civility andEstablishing a Strong Awareness of Conservation" to allemployees and organized the "Empty Plate" campaignand commitment activities. We aim to comprehensivelyadvocate for a new trend of civilized dining and establisha correct view of dining.
"Empty Plate" Campaign
Case
Waste Emissions
Year-on-year variable ratio2024Unit
Strengthening Kitchen WasteManagement to Reduce Food Waste
Utilization rate
100%-
Intensity oftotal waste
-4.20%520.61tons perRMB 100 millionof industrial output
/
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Biodiversity Conservation Strategy
Biodiversity Assessment
Microbial conservation is one of the cornerstones of our company's biodiversity protection strategy. We are committed to theongoing preservation of microbial diversity, having established a high-throughput sequencing database framework for distillingenvironment microorganisms, along with one key technology and one piece of equipment for microbial detection. These e?ortsare aimed at safeguarding the microorganisms involved in the distilling process and their surrounding environment.
Relying on the Moutai baijiu geographical indication protection zone, the Company established the Guizhou Chishui River BasinMoutai Baijiu Geographical Indication Protection Ecological Demonstration Zone (hereinafter referred to as the "demonstrationzone"). We explored the "ecology + culture" model of the dual transformation between "lucid waters and lush mountains"and "invaluable assets", and summarized transformation paths: "turning greenery into gold, protecting microorganisms andenhancing e?ciency, greening with culture, boosting agriculture with green initiatives, and empowering creation". In 2024, toensure the e?ective protection of the ecosystem and biological species in the demonstration zone, and to build a beautiful homethat coexists harmoniously with nature, the Company included biodiversity protection in the national standard GB/T 18356-2007Product of Geographical Indication Kweichow Moutai Liquor and collaborated with the Research Center for Eco-EnvironmentalSciences, Chinese Academy of sciences in plant biodiversity survey and research work in the demonstration zone.The Company conducted biodiversity assessment and analysis, with the main analysis content including vegetation communityconstruction, regional ecological space optimization, demand-oriented vegetation ecosystem development, and the sorting ofpositive and negative lists of regional plants.
Ecological Development
The Company optimizes the Ecological Development Index indicator system to measure the overall level of green developmentand actively carries out activities such as biodiversity conservation and the "Hundreds, Thousands, Millions: Eco Action" tocreate production-living-ecological spaces, safeguard the ecological environment, and build a green home.Ecological Development IndexIn 2024, the Company further optimized the index system for the Ecological Development Index to comprehensively measurethe overall level of green development from four aspects: natural ecosystem, industrial ecosystem, commercial ecosystem,and ecological civilization across 11 dimensions and 39 levels and guides the Company's green development by establishingperformance indicators. In 2024, the Ecological Development Index reached 78.41 points, a year-on-year increase of 8.9%.
2024 EcologicalDevelopment Index
EcologicalCivilization
Clean Production4 indicators
EnvironmentalGovernance4 indicators
Establishment ofEcological Culture4 indicatorsEstablishment ofEcological CivilizationSystem 10 indicators
ResourceConservation3indicators
ResourceIntegration1 indicator
Environmental Quality5 indicators
Micro-ecologicalStability 2 indicators
Driving LocalEconomicDevelopment2 indicatorsIntegrationof Industrial
Chains
2 indicators
IndustrialEcosystem
CommercialEcosystem
NaturalEcosystem
GreenTechnology2 indicators
Avoidance
Minimize negative impacts on local biodiversity during the early construction and operation stages
MitigationImprove biodiversity conservation policies and mechanisms, and conduct regular biodiversity assessments
Regenera-
tion
Strengthen projects such as ecological shelter forests, expand green space, and increase plantgreening coverageRestora-
tion
Conduct regular ecological restoration based on biodiversity assessment results
Transfor-
mation
Apply advanced technologies, such as establishing eld scientic observation stations and ecological bigdata platforms, to promote ecosystem synergy
Ecological Development Index
Target ValueActual Value
72.02
78.41
20232024
The Company follow international conventions related to biodiversity, such as the Kunming-Montreal Global BiodiversityFramework, and strictly adhere to ecological protection red lines. Through a comprehensive biodiversity conservation strategyof "avoidance, mitigation, regeneration, restoration, and transformation", we aim to minimize disturbances to the surroundingecosystem caused by our operations.
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Technical Roadmap for Biodiversity Assessment
Analysis results indicate that the biodiversity in the core operational area of the Company remains stable, and no signicantbiodiversity exposure risks have been identied. In addition, through a comprehensive analysis of the ecosystem in the corefactory area, the Company has developed key research outcomes such as regional ecological space optimization plansand regional vegetation ecological system construction plans and has also issued the Implementation Opinions on theCoordinated Protection of Ecosystems and Biological Species, providing strong technical support for the construction of thevegetationecological system and coordinated biodiversity protection in the demonstration area.Status-quo assessment
Demand-orientedvegetation ecosystem
construction
Positive and negativelists of regional plantsImplementationrecommendations forecosystem and biodiversity
co-conservation
Remote sensing survey
Pattern optimization study Vegetation characteristics study
Field investigationLand use
Ecological quality
Surface temperature
Landscape pattern
Service functions
Vegetation types
Community structure
Biodiversity
Greening methods
Spatial pattern
Landscape structure
Functional layout
Dust retention
capacity
Pollutant absorption
Carbon sequestrationand oxygen release
Basic material
research
On-the-spot
surveyBasicon-the-
spotsurvey
Status-
quosurvey
Optimiza-tion study
Reportwriting
By 2030, the quality of the ecosystem will remain stable, with the proportion of regionalforest and grassland area maintained at over
56%
. The vegetation coverage of theecosystem will continue to increase, the localization ratio of plant species will keep rising,species combinations will become more diverse, the structure of plant communities will bemore stratied, and the ecosystem service functions will be enhanced.By 2035, the quality of the ecosystem will continue to improve, with the proportion of regionalforest and grassland area reaching
58%
. The vegetation coverage of the ecosystem willgrow steadily, the ecosystem service functions will continue to strengthen, and the functionsof carbon fixation, soil stabilization, and atmospheric environment purification will be wellhighlighted.
In 2024, the Moutai production area ratio of woodland and grassland plant area was
49%
.CurrentStatus and
Progress
Overalltarget
Overall target of biodiversity protection
Meanwhile, the Company places great importance on microbial diversity assessment work, utilizing various omics technologies.We discovered two new Clostridium species in the Moutai distilling system for the rst time in the world, which have been namedthe Clostridium shijiao and Clostridium Moutai respectively. By using splicing technology to analyze microbial structures, theCompany has built the largest genetic resource library for single fermented foods to date, containing 10.6 million non-redundantgenes and over 6,800 metagenome-assembled genomes, accounting for more than 60% of the largest food microbiome catalogpublished in Cell in 2024.
Prokaryotic microorganisms:
over
families and
2,800
generaEukaryotic microorganisms:
over
families and
genera
Among them, Clostridium shijiao and ClostridiumMoutai are unique microorganisms in the distillingsystem and have been o?cially registered
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Building the Production-living-ecological Spaces
Development of "Two Mountains"
The Company, based on the "Production-living-ecologicalSpaces", has initiated a special environmental greeningplan for the core production area. We planned the parkgreen spaces, protective green spaces, plaza green spaces,and a?liated green spaces in Moutai production area in areasonable manner. We completed the construction of theEcological Protection Forest along the Tanchang-MaotaiExpress, increased the area of green planting, and improvedthe greening coverage rate of the zone to create a greenecological space. In 2024, the Company was awarded thetitle of "Green Factory" at the national levels.
The Company has been awarded the titleof "Green Factory" at the national levelsThe Company actively collaborates with local governments, focusing on the demonstration area, and promotes theimplementation of over 50 engineering tasks in six major categories, including government-enterprise cooperation, ecologicalenvironment quality improvement, ecological distilling quality enhancement, ecological industry development, ecological systeminnovation, and ecological cultural promotion and education, to high-quality advance the construction of practical innovationbase with the concept of "lucid waters and lush mountains are invaluable assets", continuously broadening the transformationpath of the Two Mountains, and promoting the positive interaction and two-way transformation between lucid waters and lushmountains and invaluable assets. The Company is also exploring the promotion of carbon sink forest construction, establishingthe Chishui River Ecological Fund, and leading basin enterprises to jointly build a "Great Protection" pattern of "drinking from thesame river and protecting the mother river together".
On December 5, 2024, the China Media Group's "Second ESG Model Ceremony" was held in Beijing. KweichowMoutai was awarded the title of "Chinese ESG Model Enterprise". Zhang Deqin, Chairman of KweichouMoutai accepted the award on behalf of the Company and shared the Company's experience and practices inimplementing ESG concepts and promoting ESG practices.
Chairman Zhang Deqin stated that the Chishui River is the only tributary of the Yangtze River without dams andis also a habitat for many rare sh species. For Kweichow Moutai, the Company has the responsibility to protectthe Chishui River and create a better ecological environment for this land, helping to nurture many healthyindustries in the deep mountains of Guizhou. The Company's development is just a part of deeply practicing thedevelopment concept of "Lucid waters and lush mountains are invaluable assets". In the future, Kweichow Moutaiwill continue to care for and protect the ecological environment of the Chishui River basin, ensuring that the waterin the Chishui River basin is clearer, the mountains are greener, and the sky is bluer.
Company Leadership shares Moutai's ecological protection philosophy
In 2024, the Company completed the construction of the ecological system field scientific observation research station inthe midstream of the Chishui River in Guizhou Province, as well as the construction of the ecological big data platform forthe upstream Daluotan water quality and hydrological station and observation station. The platform includes comprehensivedisplays of the ecological environment, water quality, environmental automatic monitoring station locations, and data displaysof environmental factors such as meteorology, water quality, air, and vegetation soil. Relying on the platform construction, theCompany conducted a comprehensive and all-weather in-depth analysis of the ecological status of the Chishui River basin,providing strong support for ecological protection work.Case
In 2024, the Company organized the "Hundreds,Thousands, Millions: Eco Action" New Yeartree planting activity for the third consecutiveyear, with the scope and scale of the activityexpanding again compared to the previous twoyears, involving a total of 2,500 people plantingover 10,000 seedlings, enhancing the ecologicaland environmental awareness of a wide rangeof managers and employees, and continuouslysupporting the construction of the Two Mountainsbase.In addition, each subsidiary and a?liated companyhas also organized and carried out New Yearenvironmental protection activities in light of theiractual situation, using various forms such as treeplanting, river patrols, sh releasing, cleaning, andenvironmental protection publicity, to collectivelyresonate with the green voice of Kweichow Moutaiand polish the green business card.
Tree Planting Activity
Case"Hundreds, Thousands, Millions: Eco Action" New Year Tree Planting Activity
Kweichow Moutai was awarded the "Chinese ESG Model Enterprise",showcasing the exemplary power of Chishui River protection
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2024 Environmental,Social and Governance Report
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Product Quality
Quality Culture
Product and Service QualityThe Company rmly believes the belief that "quality is the soul of life" and strives to provide excellent products and services forconsumers' high-quality lives and wonderful experiences.
We apply the "Time-Space-Gongfa ( skill and technique)" originality quality management model. We established acomprehensive quality management system and implemented "5+2" quality supervision and assessment to ensure qualitycontrol across full scenarios, the entire industrial chain, and the full life cycle.
The Company strictly implements the "Three Prohibitions, Four Compliances, and Twelve Perseverance" quality criteria, makingquality culture a consensus among all employees, and resulting in excellent products and rst-class services.
Four Compliances
Unqualied raw materialsare prohibited from enteringthe factory for use.
When there is a conict betweenoutput and quality, output is
subordinate to quality.
Unqualied products from theprevious process are prohibitedfrom owing into the next process.
When there is a conict betweenspeed and quality, speed issubordinate to quality.
Unqualied products areprohibited from leaving thefactory and entering the market.
When there is a conict betweenbenets and quality, benets aresubordinate to quality.
Quality Management ModelThe Company has summarized a "Time-Space-Gongfa ( skill and technique)" originality quality management mode rich innatural and humanistic characteristics, which contains natural, cultural, and ecological elements, ensuring that the uniquequality of Moutai is inherited.
"Time-Space-Gongfa ( skill and technique)"Originality Quality Management ModelWhen there is a conictbetween cost and quality, cost
is subordinate to quality.
Three Prohibitions
Quality is the soul of lifeQuality philosophy
Being customer-centered, seeking survival through quality, developing through
innovation, and striving to create a world-class enterprise
Quality and food safety
management policy
Honor the principles, abide by the rules, stick to the craftsmanship, store enough aged
baijiu, and never sell freshly brewed baijiuQuality concept
Ada
p
t
t
o
l
oc
a
l
c
ondi
tio
ns
Gongfa
The ruleof timeThe ruleof term
The needs
of thetimesTime
Space
Originality
Distilling
space
Ecosystem
Socialresponsibility
Regulations
andstandards
Scienticinterpretation
Traditional
Gongfa
F
o
l
lo
w
the
L
a
ws
K
e
ep
in
tune
with
the
times
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2024 Environmental,Social and Governance ReportQuality Control SystemThe Company takes "distilling a high-quality life" as its mission and has built a unique matrix quality control system. Relying onthe two core driving forces of inheritance and innovation, and driven by the Plan-Do-Check-Act (PDCA) cycle, we dene rolesand responsibilities through the "Responsibility & Capability System", while proactively controlling risks through the "Standards &Risk System". We combine a scientic Gongfa system, rigorous process management, and the originality spirit rich in profoundcultural and artistic values with craftsmanship, fully balancing the diversity brought by factors such as time, space, and Gongfa,ensuring the pure avor and excellent quality of our products, continuously meeting customer needs, and providing high-qualityproducts and services for consumers.
Matrix Quality Control System
Quality controlQuality design
QualitysupervisionQualityimprovement
Quality riskcontrolQualitypersonnelsupervisionand serviceResponsibilitysystemTarget systemStandardsystem
Qualitysupervisionand inspectionQualityperformanceevaluationStandardizeknowledgeDevelopimprovementtopics
P
A
D
C
Quality culture system
Responsibility & capability system
Moutai withOriginality
Cultural leadership
Responsibility implementationRisk prevention and control
Implementation Process
Quality is the soul of lifeHonor the principles,abide by the rules
Stick to thecraftsmanship
Store enoughaged baijiu
Never sell freshlybrewed baijiu
QualityLeadership
Group
QualityCommitteeChief quality
o?cer
Quality
specialist
Qualitysupervisor
Quality
inspector
"Four-in-One"education andtraining system
"10,000, Thousandand Hundred Plan"for special talents
Talent Plans
"Eight stepsto cultivatecraftsmen" talent
development
system
Food Safety ManagementThe Company deeply implements the ISO 9000 standard system, dynamically identifies quality and food safety laws andregulations closely related to baijiu production enterprises, and publishes the A List of Applicable Laws, Regulations, and OtherRequirements for Quality and Food Safety. In 2024, the Company sorted a total of 78 laws and regulations represented by theFood Safety Law of the People's Republic of China, 71 mandatory standards, and 125 recommended standards, totaling 274items.
CNAS: China National Accreditation Service for Conformity Assessment.
We construct a matrix quality control model from top to bottom. From top-level design to quality supervision,we implement quality responsibilities at all levels, while fully implementing the "5+2" quality supervisionsystem to form a closed-loop management mechanism for quality supervision and ensure effectiveimplementation of quality safety responsibilities across the entire industrial chain.
Prioritize planning
We promote the implementation of the main responsibility for food safety. We appoint one food safetydirector and 39 food safety o?cers and clarify the responsibilities and authorities of managers at all levels.We also establish a food safety management mechanism of "daily control, weekly inspection, and monthlyscheduling", develop an online reporting module for food safety, and accurately assess and resolve foodsafety management issues.
Establish mechanisms
We improve the quality and food safety standard system across all elds. We have led the development of26 national, industry, local, and group standards. The GB/T 10781.4-2024 Quality Requirements for Baijiu- Part 4: Jiang-avored Liquor, which we spearheaded the revision of, has been published and will o?ciallycome into e?ect on June 1, 2025.
Elevate standards
We strengthen the infrastructure for quality and food safety testing in the industrial chain. KweichowMoutai ( Baijiu ) Testing Laboratory is the industry's rst enterprise-a?liated laboratory to receive CNAS
accreditation. We can achieve e?ective monitoring of 1,123 quality and food safety risk factors across 53categories of materials in the entire industry chain.
Consolidate the foundation
Riskidentication
Standarddevelop-
ment
Riskmonitoring
Standardimprove-ment
Riskresponse
plan
Standardmonitoring
Riskassessment
Standarddecom-position
Quality control operation system
Product qualityassurance indexMaturity of quality
management
Product qualitygradingProcurement qualityProduction qualityProduct qualityService quality
We build a solid risk defense line for the quality and safety of baijiu in the industrial chain. The Companyfocuses on potential endogenous and exogenous risk factors in the baijiu industry chain. Driven byrisk prevention and control processes as well as four major food safety platforms, it has established acomprehensive quality and safety control system covering the entire industry chain. This ensures preciserisk identication, scientic evaluation, and comprehensive control, thereby safeguarding food safety.
Strict control
We establish a product quality and food safety traceability system. With full life cycle quality management asthe core, the Company builds an information platform for quality management to ensure the traceability ofquality at all key stages of the product's full life cycle. We also build the "One Code Management" platformand utilize blockchain technology to create the Moutai "Jiangpin Chain", forming an industry-leading producttraceability capability, and providing consumers with over 69 million traceability query services through thecirculation traceability system.
Pursue innovation
Standards & risk system
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2024 Environmental,Social and Governance Report
In 2024, the quality and food safety management platformsupported the standardized circulation of 272 sampleinformation, covering over 140,000 inspections, involving861 inspection items, and supported the stable operationof 43 quality management data models. During the year,the Company's quality management system certificationand Hazard Analysis and Critical Control Points (HACCP)system certification continued to operate effectively, withno major quality and food safety responsibility accidentsoccurring throughout the year.
ISO 9001 and HACCP System CerticationsIn 2024, the Company won a total of 38 quality-related awards, including 5 international awards, 21 national awards, and 12provincial awards, highlighting the Company's relentless e?orts in quality management.
2024 Annual Product and Quality-Related Awards (Partially Listed)
2024 People's Craftsmanship Brand
Promotion Exhibition
Moutai 1935
People's Daily Online
Lean Site Management Improvement
(Phase II) and 5S ManagementImprovement Demonstration Level
Application of Tools such as QFD andDOE in Reducing the Volatilization Rate ofRetorts in the Moutai Baijiu Production Site
China Quality Magazine
A'DESIGN AWARD & COMPETITION
(Design Excellence Award)Kweichow Moutai · Scattering Flower Fairy
A'Design Award and Competition
2024 American MUSE Creative
Awards Silver WinnerKweichow Moutai · Scattering Flower Fairy
MUSE
2024 American MUSE Creative
Awards Platinum WinnerHan Jiang (Dedicated Heritage)
MUSE
Outstanding Quality Management Team
in the National Light Industry Sector
Research and Development of Intelligent
Scheduling System for Daqu-makingQuality Sub-council of ChinaNational Light Industry Council
Second Prize of the 2024 QualityTechnology Award (Project Award) ofChina Association for Quality
Gold Award of the 49thInternational Convention on QualityControl Circles (ICQCC
）Reduction of Waste from PE Filter BagsThe Application of Moutai DEEP "Quantity-Quality" Balance Method in Jiang-avored Baijiu
Production TechnologyCAQ
Sri Lanka Association for the Advancement ofProductivity and Quality (SLAAQP)
Award NameAwarded ProjectsAwarding Organization
202420242024
(year)
(point)(point)(point)
(year)(year)
202320232023
906.298.596.8
916.5
98.61
98.73
90090904504545
Increase ofpointsIncrease ofpointsIncrease ofpoints
10.3
0.11
1.93
Maturity of quality
management
The product quality score ofMoutai baijiu Flying Fairy (Feitian)
Product qualityassurance index
2024 Product Quality Data
The quality management maturity reects the operational level of the Company's quality management system, while the productquality assurance index reects the ability to guarantee product quality, and the product quality rating reects the quality of thenal product. In 2024, all of these indicators have remained stable at an excellent level.
The batch inspection coverage rate ofthe outgoing products
100%100%The pass rate of product supervisionspot checks
100%100%The pass rate of the outgoing products100%100%
Kweichow Moutai Co., Ltd.20232024
The Company uses "Quality Month" as a platform to carry out quality lecture activities and to select excellent cases ofpracticing the "Time-Space-Gongfa ( skill and technique)" originality quality management model. We continuously promote anddisseminate quality culture to important stakeholders such as employees, customers, suppliers, shareholders, and distributors,allowing quality culture to support brand growth.
Building Excellent Quality Together
ICQCC: International Convention on Quality Control Circles
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Customer RelationsResponsible Marketing
The Company strictly adheres to the Advertising Law of the People's Republic of China, the Law of the People's Republicof China on the Protection of Consumer Rights and Interests, and other laws and regulations, and has established variousregulatory documents such as the Management Measures for the Marketing and Promotion of Moutai Baijiu Distribution System,the Advertising Placement Management Measures, the News Publicity Management Measures, the Kweichow Moutai BaijiuChannel Partner Management Measures, the Online Brand Promotion Activity Implementation Specications, and the O?ineBrand Activity Implementation Specifications, and has prepared and disclosed the Kweichow Moutai Co., Ltd. ResponsibleMarketing Policy
, regulating marketing behavior according to relevant details.The Company is committed to resolutely eliminating the behavior of falsely reporting products, services, and prices. Wepromise neither to publish any false or misleading information nor to make misleading statements about competitors' productsor services. We adhere to the principle of truthfulness, objectively describe promotional content, ensuring that there are nosuggestive or inducing elements in the wording and language expressions, and refuse to exaggerate our impact on society andthe environment. To this end, we continuously improve the advertising review process, clarify the advertising review mechanism,and strictly implement the "three reviews and three proof-readings" regulations to fundamentally ensure the authenticity of allpromotional information and content released externally. Meanwhile, we strictly prohibit the use of specic identiers such as"special supply" "exclusive supply" and "internal supply" in alcoholic beverage advertising.
The Company continuously improves its marketing management system, strengthens responsible marketing audits and training,and enhances the compliance of marketing activities. Meanwhile, we promote a healthy and civilized lifestyle, work tirelessly toadvocate for responsible drinking, and e?ectively safeguard consumer rights.Compliant Marketing
"Prohibition of Alcohol Sales to Minors" Signs
The Company actively promotes a culture of responsible drinking.We clarify the ingredients and alcohol content on the productpackaging and give a prompt that "Drinking too much is harmfulto health" on the product label, as well as implement browsingprivilege management on the official website, distinguishingbetween "18 years old" and "under 18 years old" user groups,and add some tips such as "Not selling baijiu to minors", and"No driving after drinking" into the product introduction page ofthe o?cial website. We emphasize that "Advocate of responsibledrinking" and "Underage drinking is prohibited" in the TV andInternet advertisements, and display signs stating "sales of alcoholto minors are prohibited" in prominent locations within businesspremises, fullling the responsibility to protect minors. Furthermore,the Company's advertisements do not contain content that inducesor encourages drinking or promotes excessive drinking, andemphasizes the protection of public health and social safety.The Company actively participates in responsible drinkingpromotional activities, setting up a responsible drinking promotionarea during brand promotion events. In the Moutai Friends Carnivalevent plan, provinces and sodalities are called upon to implementconcepts of green environmental protection and healthy drinkingduring the activities. From October 9 to October 16, 2024, theCompany organized all exclusive stores, self-operated companies,cultural experience centers, and supermarket e-commerceplatforms to participate in the responsible drinking activities and tocarry out responsible drinking publicity.
Advocation of Responsible Drinking
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
Customer Complaint Handling Rate
Product recall incidents
Case
To enhance customer satisfaction and optimize after-sales service, the Company has established regulations suchas the Management Measures for Product Replacement (Rework), the Product Withdrawal (Recall) ManagementRegulations, the Management Measures for Customer Consultation and Complaints, the Standard Service Languagefor Exclusive Stores, and the Standard Service Manual, clarifying the channels and processes for handling customercomplaints, and continuously improving the customer complaint management system.If customers encounter product quality issues, they can call 4008189999 to make an appointment at the nearest self-operated store for product identication and evaluation. The Company will exchange products for customers througheither an advance replacement or restocking replacement, depending on the product type and inventory situation. Ifinventory is su?cient, customers can be provided with an advance replacement. For special products, replacement ofdi?erent items, and situations where store inventory is insu?cient, a replenishment and replacement method will beadopted. After submitting an application in the system, the product will be returned to the Company. The Company willfollow the system process and use logistics to deliver new products to self-operated stores, ultimately completing theexchange with the customer.In 2024, we optimized the e?cient linkage customer service system of "400 calls + online consultation + complaintfeedback + product redemption", handled more than 364,000 business consultations of various types, more than998,500 online customer service consultations, handled 6,555 complaints, and achieved a satisfaction rate of 99.01%throughout the year. We have established a product replacement service process and after-sales service businessprocessing system for our stores, which has shortened customers' product replacement cycle and improved thee?ciency of handling replacement business. In 2024, the product timeliness rate of replacement exceeded 98%. Theaverage replacement cycle was shortened to 1.12 days, a decrease of 7.11 days year-on-year.We conduct a customer satisfaction survey once a year and hire a third-party authoritative organization to surveyconsumers and distributors to assess the current status of customer satisfaction, including overall satisfaction,satisfaction with various indicators, satisfaction with each product, and satisfaction compared to industry competitors,and to propose improvement suggestions based on the survey indicators. In 2024, the consumer satisfaction is 90.3points, a year-on-year increase of 0.7 points.2024 Customer Service Highlights Data
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Mutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
The Company continuously improves audit procedures, actively conducts responsible marketing audits, and reviews themarketing management, channel management, and customer management systems to ensure the applicability and complianceof these systems, assessing the e?ectiveness of the implementation of the Responsible Marketing Policy and the rationality ofthe marketing team structure and conguration. The Company conducts at least one marketing special audit every six monthsand regularly tracks and recties the issues revealed monthly, continuously strengthening marketing compliance management.
Responsible Marketing Audit
Kweichow Moutai Baijiu Sales Co., Ltd.
Kweichow Moutai Jiang-avor (Moutai-avor) Baijiu Sales Co., Ltd.
In 2024, Kweichow Moutai Baijiu Sales Co., Ltd. focused on internal control management through internalinspections and special audits, helping to improve the Company's level of modern governance.
●We conducted internal control inspections for 11 self-operated companies and participated in joint "Five-in-One" supervisory inspections for 21 self-operated companies, focusing on the implementation of regulationsand internal control management.
●We established a comprehensive supervision mechanism and conducted in-service economic responsibilityaudits for ve self-operated company managers who have served for more than three years.
●We carried out two special audits, focusing on and continuously tracking the rectication of identied issues.
●We created a rectication ledger, issued 42 rectication notices, and assigned dedicated personnel to followup on the rectications.
●
We supervised the handover of key positions, ensuring the compliance of the transitions.
In 2024, the Kweichow Moutai Jiang-flavor (Moutai-flavor) Baijiu Sales Co., Ltd. focused on key risk areasand conducted specialized audits, primarily reviewing the compliance of market activity proposals and theauthenticity of reimbursement documents. The marketing audit covered all provincial regions, applicants, brands,and activity types. In response to the problems identied in the audit, the relevant departments were requestedto rectify the problems in a timely manner.
The Company actively conducts training and promotional activities on responsible marketing and o?ers a variety of training typesand wide coverage, receiving positive feedback and results. Meanwhile, the Company regularly conducts responsible marketingtraining for all employees to enhance their awareness of responsible marketing. In 2024, the Company conducted a series ofresponsible marketing trainings for groups such as channels, cultural sommeliers, century-old store inheritors, experience centersta? and theme terminal directors.
Training on Responsible Marketing
From April to October 2024, the Company organized 155inheritors of century-old stores from home and abroad to conduct8 production experience activities, with each activity lasting 6days. The inheritors deeply experienced the processes of makingDaqu, distilling, and packaging in the workshop, and communicatewith distilling masters to deepen the understanding of Moutai'sculture and distilling techniques, and to more comprehensivelyconvey brand and product information to consumers, committingto responsible marketing practices.
CaseProduction Experience for Century-old Store Inheritors
Production Experience Site of theCentury-old Store Inheritors
Training Site for Sta? of Guizhou Moutai Jiang-avored Baijiu Experience Center
案例
In 2024, a total of 10 training sessions for experi-ence center sta? were held, with 612 trainees from251 companies participating. The content focusedon brand culture, service improvement, marketingcompliance, and other aspects.
CaseTraining for Sta? of Experience Center
"Jiang-avor Moutai Aroma, Shared by Thousandsof Families" Theme Terminal Leaders Training Site
案例The Company conducted offline training for thethematic terminal leaders, lasting 52 days andcovering 47 cities. A total of 47 sessions were heldwith 7,010 participants. The content focused onskills for new customer development, maintainingcustomer relationships, market cultivation, marketingcompliance, and responsible drinking. Throughsystematic training and practical experience, weaimed to enhance the responsible business skillsand management level of the thematic terminalleaders.
CaseTraining for Thematie Terminal Leaders
Principles of responsible marketing
Target audience of products and advertising
●Comply with laws and regulations;
●
Comply with various rules and regulations formulated by the competentauthorities and industry self-discipline conventions;
●Comply with industry rules and market norms.
Advocating responsible drinking
●
Advocate responsible drinking and healthylifestyles;
●Proactively alert people to potential risks ofdrinking alcoholic drinks.Accurate and fair information
●Real information on the product;
●
Using misleading information to promoteproducts is prohibited.Legal compliance
●Provide interpretation and training on the Code of Conduct for alcoholdrinks advertising;
●Provide interpretation and training on industry regulatory requirementsand market norms.
●The target audience shall not be minors, pregnant women, or otherindividuals who are not suitable for drinking alcoholic drinks;
●Channels and self-operated stores are required not to sell alcoholicproducts to minors.
Training on responsible marketing
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Cultural Connotation of ProductsIn 2024, the Company released a series of cultural products, including baijiu of the Chinese Zodiac Year of the Snake series,Sheng Music Moutai Flying Fairy, Moutai West Lake Scenic Series cultural and creative baijiu, and Moutai 1935 Cultural andCreative baijiu. Based on market demand, a 100ml Moutai baijiu gift box set was launched, and a total of 64 products weredeveloped throughout the year to better meet consumer needs.
The red yarn color is the main color, and zodiac culture, thetheory of the five elements, and the art of calligraphy andpainting are cleverly integrated. The ceramic bottle featuresthe seal script character "snake" and the painting The WindRemains Still Where the Spirit Snake Emerges, showcasingthe unique charm of Eastern calligraphy and painting arts.With this, the series of twelve Kweichow Moutai ZodiacBaijiu is complete.
Inspired by the ying fairy from Dunhuang murals, it adoptsa main color of "purple mineral" and iron wire drawingtechnique, delicately hand-painting its elegant and gracefulposture, achieving an artistic e?ect of "gures full of life fromall angles", presenting a mineral ceramic texture consistentwith Dunhuang murals. This allows the product culture toblend and thrive with the Dunhuang culture.
Kweichow Moutai Baijiu (Chinese
Zodiac Year of the Snake)
Kweichow Moutai Baijiu(Sheng Music Flying Fairy)
With exquisite craftsmanship, the design integrates the theme"National Beauty and Heavenly Fragrance", and features ahand-painted illustration of a snake winding around a cloud-covered mountain. The Moutai logo and thematic charactersare cleverly combined and complemented by elements suchas peonies and pearls. The "palace wall red" bottle body isaccented with green textured speckles, exuding classicalrichness. The bottle cap incorporates water patterns and ruyimotifs (meaning "as you wish"), symbolizing good fortune.The design of the exclusive seal for the Chinese Zodiac Yearof the Snake adds artistic value to the product.
The design blends the calligraphic ink treasures with thepainting Spirit Snake in the Wonderland. The "pomegranatered" bottle body is paired with green textured specklesand relief patterns of the coiling snake, while the uniquelydesigned bottle cap symbolizes the "Pearl of the Serpent"(invaluable treasure).
Moutai Prince Baijiu (Chinese
Zodiac Year of the Snake)
Guizhou Daqu Baijiu (ChineseZodiac Year of the Snake)
Every year, two of the ten scenic spots of West Lake areselected to be incorporated into Moutai's cultural creativebaijiu, blending the breathtaking scenery of West Lake withclassical charm. With unique bottle design, exquisite paintingsand poetry, and cleverly integrated folding fans, it createsan elegant cultural sensory experience. The Tu white andultramarine design of Moutai 1935 symbolizes the LingeringSnow on the Broken Bridge and the Three Pools Mirroringthe Moon, adding cultural avor.
In collaboration with the Palace Museum, Moutai 1935Cultural Creative Baijiu is launched, skillfully merging theprofound cultural heritage of the Palace Museum withthe exceptional quality of Moutai. Through the exquisitepackaging design featuring elements of cultural relicsfrom the Palace Museum, it not only showcases a uniquecraftsmanship pursuit but also pays tribute to and inheritsthe excellent traditional culture of China, highlightingMoutai's responsibility and commitment as a culturalambassador.
Moutai West Lake Scenic Series
Cultural and Creative Baijiu
Moutai 1935 Cultural and
Creative Baijiu
The Company actively organizes cultural activities, using these events as a medium to convey Moutai culture to consumers andprovide a rich and diverse brand experience.
In 2024, the Company held a total of 11 Moutai fansCarnival events, bringing together more than 5,800Moutai fans as they traveled across ten provincesand regions, including Fujian, Shanghai, andHeilongjiang. The events highlighted the culturalconnotation of Moutai, guiding Moutai fans from allwalks of life to appreciate Moutai products, admireMoutai culture, and experience Moutai services,winning widespread appreciation and recognitionfrom Moutai fans.
Moutai Fans Carnival Event Site2024 Moutai Hongyingzi Sorghum Harvest Season Site
During the 2024 Double Ninth Festival, the Company hosted the 21st Moutai Baijiu Festival. The event invited numerouscultural scholars and guests from the art community to witness the commencement of Moutai's new production year.Through a series of ceremonies and cultural activities, we deeply interpreted our core corporate values of "Followthe Nature and Respect the Man, Seek Truths and Cultivate Virtues" and showcased our commitment to distillingcraftsmanship and quality faith, telling the story of Moutai people's gratitude, perseverance, and inheritance in the new era.
In August 2024, the Company, in collaboration withthe Renhuai Municipal Government, held the MoutaiHongyingzi Sorghum Harvest Season event themed"Respecting Farmers in the Harvest Season andEnsuring Quality through the Ages". This eventdeeply integrated agricultural culture, local culturalcharacteristics, and Moutai culture, highlighting theCompany's inheritance and praise of agriculturalculture.
Moutai Baijiu Festival Event Site
The Company has created a public welfare brand under "China Moutai, Backbone of the Nation", and carried out aseries of public welfare projects under four major sectors: ecological protection, education for people's livelihood,cultural heritage, and industry. In 2024, the Company donated RMB 100 million to the China Youth DevelopmentFoundation (CYDF) to help students achieve their dreams of attending universities. Since the project started in 2012,over RMB 1.3 billion has been donated, beneting more than 250,000 students in realizing their dreams of universitystudy. We continuously convey Moutai's great love and social responsibility and highlight the "responsibility andcommitment of the mountains".
"China Moutai, Backbone of the Nation" Public Welfare Scholarship Activity Site
CaseMoutai Fans Carnival
CaseMoutai Baijiu FestivalCase
Case
China Moutai, Backbone of the Nation
Moutai Hongyingzi Sorghum Harvest Season
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
Appendix
About the ReportMessage from
the Chairman
SustainableDevelopmentAboutKweichow Moutai
2024 Environmental,Social and Governance Report
Cultural Empowerment
110109
About the ReportMessage from
the Chairman
SustainableDevelopment
Symbiotic Coexistence: CoexistingHarmoniously with Nature
Sharing Benets: SharingValue with Society
Mutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
Compliance and Equality
Compliance-based Employment
Employee ManagementKweichow Moutai practices the philosophy of "valuing morality and ability, maximizing individual potential, and advancingtogether with the enterprise". We continuously improve the talent development system, conduct diverse employee trainingprograms, ensure employee rights and benets, and strive to build a "Happy Moutai".
We insist on compliance hiring, fully protects employees' legal rights, deeply implements a corporate culture of diversity, equality,and inclusion, and creates a harmonious and progressive workplace environment.
The Company adheres to the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republicof China, the Regulations on the Prohibition of Child Labor, and other relevant laws and regulations. It has formulated theEmployee Recruitment Management Measures, which clarify the recruitment process and supervisory mechanisms to ensurecompliance, fairness, and transparency in recruitment. Eliminate all forms of forced Labour and recruitment of child Labour. Bythe end of 2024, the total number of employees of the company was 34,750, and the annual employee turnover rate was <1%.
Number of employeesaged 31 to 50Number of employeesaged 51 and aboveNumber of male employeesNumber of female employees
Number of employeesaged 30 and below
23,529(person)
22,168(person)
1,552(person)
11,221(person)
11,030(person)
Total number of employees 34,750 (person)
Number ofEmployeesby Gender
Number ofEmployeesby Age
2024 Employee Employment Data
Equality and Inclusiveness
Smooth employee feedback channel
The Company adheres to the Trade Union Law of the People's Republic of China, the Law of the People's Republic of Chinaon the Protection of Rights and Interests of Women, and other laws and regulations. It has established and publicly issued theKweichow Moutai Co., Ltd Employee' Rights and Interests Protection Policy
to build a comprehensive rights protection system.The Company legally respects employees' rights to participate in unions and collective bargaining, ensuring that employees cancommunicate with management on working conditions and management issues in a fair, just, and open manner. In 2024, theCompany's collective contract signing rate reached 100%, and employees' rights were e?ectively safeguarded.
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
The Company is committed to upholding the principle of equal pay for equal work, with oversight by the company executives,and is dedicated to creating a fair and just work environment. We fully respect employees' rights, eliminate any form ofdiscrimination based on region, ethnicity, religion, pregnancy, etc. We publicize the Employee Rights and Interests ProtectionManagement Measures and the Kweichow Moutai Co., Ltd Employee' Rights and Interests Protection Policy to all employees,covering anti-discrimination and harassment, occupational health and safety, privacy protection, etc., and are committed tocreating a harmonious working environment.
案例
Additionally, the Company has established an open and accessible feedback channel, encouraging employees to report anyillegal activities they uncover or any instances of discrimination, harassment, or defamation they experience. In handling allinquiries, complaints, and requests for assistance, the Company adheres to strict condentiality principles, fully respecting andprotecting the legitimate rights and interests of whistleblowers.
The Company regularly organizes "Legal Consultation Day"activities every month, and hires professional lawyers toprovide employees with free online and offline consultationservices. Solve the legal troubles of employees, andcontinuously improve the legal awareness of all employees.
In 2024, the Company organized the "Spreading LegalKnowledge to the Primary Units, Assisting in QualityEnhancement" legal education campaign and Women's LegalRights Month activities. Professional lawyers were hired toconduct lectures and training in 55 grassroots units on theprotection of the rights and interests of female employees, thecivil code, and the protection of consumer rights and interests.
On-site Legal Consultation with Employees
Proportion of women insenior management
25.00%
Proportion of women in
junior management
24.29%
Proportion of womenin revenue-generatingfunctions
34.52%
Proportion of women inSTEM-related positions
17.47%
Gender Proportion of Management and
Professionals in 2024
Han general employees
Minority managementHan managementMinority general employees
95.70%
4.30%
5.72%
94.28%
Proportionof GeneralEmployees
Proportion ofManagement
Case
Case
"Legal Consultation Day" Activity
Legal Knowledge Promotion and Women's Legal Rights Month Activities
On-site Sta? Conduct Legal Advice
67.71%
63.79%
4.47%
32.29%
31.74%
112111About the ReportMessage from
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Mutual Success: Enabling ModernGovernance within the Organization
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportGrowth and Development
Employee GrowthWe have constructed a scientic and complete employee growth and training system, and are committed to forging a high-quality, professional workforce to provide talent support for the Company's sustainable development.The company has established a sound employee rank system and formulated the Position Level Management Measures, whichdenes the rank division, career development path and specic requirements for qualications of employees in detail, providingemployees with a clear career growth blueprint. At present, we are developing the qualification system and competencystandards, and promoting the implementation of certication.We have implemented a fair and transparent employee performance evaluation and promotion mechanism and conductedregular talent assessments and performance monitoring. By employing a multidimensional performance appraisal approach, weensure an impartial and transparent evaluation process.
The Company has established a leadership team for occupational skill level certication and formulated regulations such asthe Professional and Technical Personnel Title Evaluation and Appointment Management Measures and the OccupationalSkill Level Recognition and Appointment Management Measures. These policies provide clear denitions and standards forprofessional technical titles and occupational skill levels, setting forth scientic and reasonable evaluation criteria. Additionally,we encourage employees to pursue further education while on the job, strongly supporting them in obtaining master's degreesor higher, advancing professional technical titles, and enhancing occupational skill levels. We also o?er nancial reimbursementand other substantial assistance, paving a broad and smooth career development path for our employees. In 2024, 559employees completed academic credentials authentication and registration. In 2024, the company's "Talent Equivalent Density"increased to 0.981.We have built a comprehensive "four-in-one" education system by e?ectively integrating resources such as Employee Training School,Moutai Academy, and online learning platforms. Through categorized instruction, we aim to enhance employees' professional skills andoverall competencies.
The Company has formulated the Annual Work Target Management Regulations to dene theexpected work outcomes or desired states to be achieved within a specied period. A top-downapproach is adopted for setting, breaking down, tracking, and managing various targets. Inaddition, according to the completion of the target task evaluation and reward and punishment,to achieve the production and operation management objectives of the enterprise.
TargetManagement
The Company has issued the High-Quality Development Performance AssessmentManagement Regulations, which define the organizational performance managementprocess and establish a performance monitoring and assessment mechanism for high-qualitydevelopment. The assessment employs a combination of Key Performance Indicators (KPI)and Objectives and Key Results (OKR) methods, evaluating organizational performance acrossve dimensions: workload, work quality, process control, service level, and learning & growth.OrganizationalPerformanceAssessment
AnnualComprehensive
Assessment
The Company has developed the Detailed Rules for the Management of Additions andDeductions in the Annual Comprehensive Assessment, which clarifies the incentive andconstraint mechanisms, standardizes the criteria for adding or deducting points in thecomprehensive assessment, and ensures the fairness of assessment results.
Performance Management and Evaluation Methods
Talent Development
In 2024, the company formulated and issued the Management Measures for the Introduction of High-level Talents and Talents in UrgentNeed and the Implementation Rules for the introduction of Doctoral Students, introducing a total of 9 high-level talents in distillingmicroorganisms, raw material breeding, ecological environment and other elds, providing talent support for the company's scienticand technological innovation. The company organized the second "Moutai Outstanding Talent Award" with a bonus of RMB 400,000.At the same time, on the basis of the "post-92" selection and training, promote the "post-95" evaluation reserve talent training andselection, and finally select 50 outstanding young evaluation talents to enter the core evaluation talent pool from more than 3,000people, and continue to enhance the thickness of industry talents. Furthermore, the Company implemented an open selection processfor managerial positions in 2024. From over 400 applicants from the liquor distilling and qu-making workshops, 30 supervisors and 30deputy supervisors were selected to further strengthen and expand the production backbone team.
In September 2024, the Company launched special trainingfor 100 selected talents in the "Inheritance Program". Thetraining covered areas such as leadership development, AItechnology applications, and team-building strategies. Toensure high-quality training, we invited esteemed universityprofessors and industry experts to deliver courses using acombination of theoretical instruction, case analysis, andsummary reports. This approach deepened participants'understanding of the training content.
In 2024, the Company meticulously planned a seriesof monthly training sessions in accordance with theThematic Open Course Training Program. Thesesessions covered essential topics such as culturaland value formation, national defense education,cutting-edge AI advancements, risk managementstrategies, corporate culture, and brand development,continuously improve sta? literacy.
In 2024, the company actively promotes the promotionof professional and technical titles and vocational skills,and recommends 65 people with middle and senior titlesin political work, engineering, economics, agriculture andother series. A total of 228 employees received professionaltitle appointments. Additionally, the Company organizedskill assessments for approximately 15,000 workers inprofessions such as liquor distilling, Chinese culinary arts,and welding. These e?orts further streamlined the careerdevelopment pathways for technical and skilled personnel,continuing to strengthen the construction of talent teams.
"Inheritance Program" Training Session
Vocational skill level recognition theory examination site
Thematic Open Course Opening Ceremony
CaseConducting "Inheritance Program" Training Project
Case
Case
Diverse Thematic Open Course Training
Professional and technical titles and vocational skill level recognition and appointment
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportThe Company continues to implement multi-channel leadership enhancement training programs aimed at cultivating a highlyefficient management team. We have developed a series of online courses for management personnel, including ExcellentLeadership, the 6E Leadership Model Construction
, and Digital Leadership Advancement. Additionally, we provide professionaltraining for key production system personnel, covering quality control (QC), safety management, and in-depth corporate cultureeducation, ensuring growth and development opportunities for managers at all levels.To help new employees integrate quickly, we have established a structured onboarding training program. This programintroduces them to legal principles, craftsmanship spirit, and essential health and safety knowledge. A nal assessment is alsoconducted to ensure the e?ectiveness of the training.
In terms of professional skill development, the Company deepens the "Eight steps to cultivate craftsmen" training program toimprove employees' technical prociency, encourage employees to uphold and promote the spirit of craftsmanship.The Company has established a Leadership Team for Job Training and Skills Competitions to guide and organize employees'regular participation in training activities, further fostering their professional development. Over the past year, variousworkshops and departments have organized a total of 454 job training sessions, enhancing employees' professional expertise.Additionally, we actively promoted the master-apprentice training program, resulting in 184 master-apprentice pairs in 2024.To date, 110 pairs have been forming, and a total of 95 technical positions have been hired throughout the year, which hascontinued to expand the talent team of Moutai artisans.
Backbone cultivation
Excellent shift
(team) leadMoutai Craftsman
ProfessionalTechnical Position
In July and August 2024, the Company organized two sessions of a comprehensive and enriching 24-day onboarding training program for new employees. The training covered both behavioral exercises andtheoretical learning, encompassing topics such as political ideology, corporate culture, laws and regulations,production safety and occupational health, and professional skills, helping them quickly adapt to the professionalenvironment.
"Eight steps to cultivate craftsmen"talent cultivation system
A comprehensive leadership framework that integrates charisma, vision, motivation, coaching, empowerment, and talent selection.
Rights and Benets
Employee Benets
Care for the Employees
The Company regards employee rights as a core element of its development, placing great emphasis on building acomprehensive benets system. We actively establish communication channels to listen to employees' voices and organize avariety of cultural and recreational activities to promote their holistic development.
The company improves the welfare system according to law and regulations, o?ering comprehensive support and thoughtfulcare to enhance employees' sense of belonging and well-being.At the fundamental social security level, we strictly adhere to national regulations by providing all employees with the "FiveInsurances and One Fund" and implementing a corporate annuity plan to further improve their post-retirement quality of life.Additionally, the Company safeguards employees' health and well-being by purchasing comprehensive personal accidentinsurance and supplementary medical insurance.In terms of work-life balance, we strictly implement the Attendance Management Measures rest and rest time, protectemployees' statutory leave rights, and create a more humane and harmonious working environment. Employees are entitledto statutory holidays and welfare holidays such as maternity leave, breastfeeding breaks, and paternity leave. Unused annualleave can also be exibly carried over to the following year. Furthermore, we provide free meals and commuter shuttle servicesto ease daily dining and commuting challenges, enabling a seamless integration of work and life.
We recognize employees' core needs and tailor personalized support programs for different employee groups, integratinghumanistic care into the details of our benets system. By safeguarding every employee's rights and well-being. We establishe alove fund to provide a warm life guarantee when employees and their families need help.
Female employeesEmployees stationed in other provinces/cities
Young employees
Retired sta?
●
Purchase health insurance and maternity insurance andregularly organize gynecological examinations and "twocancers" screening
;
●O?er maternity leave, childcare leave, and breastfeedingleave to support recovery during special periods;
●Establish a "Home for Female Employees", equip lactationrooms, and parking spaces for pregnant women, anddistribute sanitary and labor protection products;
●Implement a 22+8 vacation mode;
●Minimize the number of female employeesstationed abroad.
●Create career pathways for young employees andprovide career planning guidance;
●Host get-togethers for unmarried young employees asa platform for making friends;
●Establish interest groups in photography, reading, andsports.
●Organize visits and celebrations during festivals suchas the Senior Citizens' Day and Spring Festival;
●Arrange personalized free health check-ups forretirees;
●Conduct cultural and entertainment activities suchas calligraphy, singing, and dancing.
Medical services for cervical and breast cancer screening.
Induction training
Master-apprentice
Job training
Skills recognition
CaseComprehensive Training Program for New Employees
Into thefurnace
Forging
SmeltingHammering
Rening
Quenching
Sublima-tion
Hardenedinto steel
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FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
Employee Communication
Cultural and Sports Activities
We built bidirectional communication mechanisms through various platforms such as the "Colleague Bar", "Direct Line to theChairman", eld visits and workshops, and surveys to listen to employees' voices, widely collect feedback, and timely response.In 2024, we gathered 109 opinions and suggestions, all of which have been properly addressed.We conduct annual employee surveys, covering topics such as company management, personal work status, teamwork andcommunication, training and suggestions, performance management, and compensation and benets. In 2024, the Company'semployee satisfaction reached 81.59 points, dedication 88.15 points, and corporate culture identity 93.22 points. We conduct in-depth analysis of the survey results, organize focus group interviews, invite employee representatives to discuss key issues, andactively implement improvement measures to enhance employee well-being.
The Company actively promotes a healthy lifestyle by organizing a wide variety of cultural and sports activities. These activitiesenhance communication and collaboration among employees, promote a balance between work and life, and continuallyimprove team cohesion and the sense of gain of employees.In 2024, the Company launched 14 types of courses, including singing and dancing, musical instruments, calligraphy andpainting, sports, chess, and photography, attracting over 7,000 employees to participate in these learning activities. Weestablished various cultural and sports groups, encouraging employees to voluntarily organize diverse activities, and constantlycreating a "healthy living, happy work" work-life environment for them.
The Company set up various cultural, sports and hobby groups, and the daily management of the group has beenimproved, so that the group has funds, personnel and activities. The groups participated in several cultural andsports competitions, such as the Workers' Volleyball Competition of Guizhou Provincial Finance, Trade, Tobacco,Alcohol, and Tea Union, the First Employee Swimming League in Zunyi City, the 32nd Fishing Competition ofGuizhou Province, the "Mutual Assistance Guarantee Cup" Employee Football and Basketball Competitions inZunyi City, and the Employee Square Dance Competition in Renhuai City.
Employee Walking Group Participating in the 2024"Climbing the Peak of Liquor Capital, Enjoying theScenery of Miao Town" Employee Mountain Climbing
Competition
Musical Instrument Group - Conducting Electronic
Keyboard Training
Management System
Health and Safety
Kweichow Moutai always regards employee health and safety management as the cornerstone of corporate development andunwaveringly promotes occupational health and safety work, built a sound occupational health and safety system, and protectedemployee safety.
https://www.moutaichina.com/mtgf/shzr/xgzc/index.html
The Company abides by the Occupational Disease Prevention and Control Law of the People's Republic of China and the Lawof the People's Republic of China on Work Safety and other laws and regulations. We have formulated the Kweichow MoutaiCo., Ltd. Occupational Health and Safety Policy
. and call on all business partners, including suppliers and distributors tocomply with this policy, standardize occupational health and safety management procedures, and protect the occupational healthand safety of employees.The Company's Strategy Committee, as a Board-level committee, serves as the highest decision-making body for healthand safety practices. It is responsible for formulating occupational health and safety strategies, evaluating performance,and managing risks, with explicit authorization to set workplace safety objectives. Under the Strategy Committee, the SafetyProduction and Fire Protection Committee is established to fulfill management responsibilities, ensuring compliance withnational safety production laws and regulations, formulating the Company's safety production policies, objectives, and plans,and overseeing their implementation. In addition, the Company has established an Employee Health Management LeadershipGroup, directly led by senior executives, to oversee health and safety strategies and performance management. This team isresponsible for strengthening the organizational and service support systems for employee well-being, ensuring the e?ectiveimplementation of health and safety a?airs.Meanwhile, CEO is designated to lead and advance the strategy and performance management of health and safety, with healthand safety performance linked to the CEO's performance evaluation and compensation.CaseEstablishing Various Cultural and Sports Associations and Interest Groups
Board of Directors
Strategy CommitteeSafety Production and Fire Protection
CommitteeEmployee Health Management
Leadership Group
Occupational Health and Safety
Management Responsibilities
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SustainableDevelopment
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Sharing Benets: SharingValue with Society
Mutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportActions and MeasuresThe Company works to promote the safety production responsibility system. We require all employees to sign the SafetyProduction and Fire Safety Responsibility Agreement, clarify safety responsibilities at all levels, and ensure that safetyresponsibilities are implemented for every employee. Meanwhile, we closely link safety goals with employee performance topromote the effective development of related work. In the supplier management process, the Company strictly controls theadmission standards, requiring key material suppliers and labor outsourcing suppliers to have occupational health and safetymanagement system certication to ensure the safety level of the supply chain.Safety CerticationThe Company organizes internal and external auditsevery year. During the reporting period, the external auditconducted by the China Quality Association conrmed thatthe Company's occupational health and safety managementsystem has no major non-conformities and operatese?ectively. In 2024, Moutai's ISO 45001 Occupational Healthand Safety Management System certification covered allrelevant operations of the Company.
Certicate of Occupational Health andSafety Management System Certicationa
Security AssuranceThe Company builds prevention in advance, tracking in the event and improving the safety guarantee system after the event tocreate a harmonious and stable working environment for employees.
●Regularly identify production safety risks, formulate and implement risk control measures.
●We regularly conduct occupational disease hazard assessments and promptly inform employees of the results. In 2024,through the enhancement of technologies and management measures such as noise-reducing tools, soundproof walls,bulk bag packaging, grass screening, and dust removal equipment upgrades, we fully completed the special governancework for 36 points of occupational hazards that exceeded standards.
●
We arrange comprehensive occupational health check-ups for employees, and establish occupational health monitoringrecords to track employees' health status throughout.
●We timely and adequately provide employees with labor protection supplies that are suitable for their positions, e?ectivelyensuring production safety and eliminating or reducing occupational hazard factors from the source.
●
We develop a comprehensive emergency plan to ensure that emergency responses are systematic and regulated.
●We form an emergency rescue team to ensure a swift response in case of emergencies.
●Strengthen emergency relief supplies and equipment stockpiling, maintenance and updating to ensure their e?ectivenessand suitability.
●We carry out regular emergency drills to continuously enhance employees' emergency response capabilities and teamcollaboration levels, ensuring comprehensive protection of employees' lives and health as well as the safety of companyproperty.
During the year, the company invested RMB 50,085,300 for employee injury insurance and RMB 310,000 for employee safetyproduction liability insurance, both of which covered 100%. Throughout the year, the company invested a total of RMB 283million in production safety, and made every e?ort to protect the occupational health and safety of employees.
The Company has established the Safety Regulations for Operations in the Confined Space of KweichowMoutai Co., Ltd. and operational procedures, and equipped with the operational procedures for the "four-in-one"gas detector, implementing a delegated approval mechanism for conned space operations. The Company isequipped with detection instruments, adhering to the principle of "ventilate rst, test, have supervision, and nallyoperate", actively conducting specialized training to enhance employees' safety awareness and operationalstandards, and build a strong safety production barrier.
Safety Drill Site in the Conned Space
CaseSafety Assurance Work in Conned Spaces
In 2024, the Company conducted a special study on issues related to the "Six Measures for Dust" safetyproduction. According to the Standards for Determining Major Accident Hazards in Industrial and TradeEnterprises, guiding employees to work safely in strict accordance with work procedures. After the meeting,we clearly dened the hazardous areas for dust explosions, implemented graded management measures, andwidely conducted publicity and education training activities at the workshop and team levels, guided employeesto strictly follow the work process of safe production, e?ectively standardizing on-site operating procedures andenhancing all employees' professional knowledge and skills in dust explosion prevention.
Dust Cleaning Management Regulations"Six Measures for Dust" Promotion Materials
CaseImplementing the "Six Measures for Dust" to enhance dust explosion management
Prevention and Control Measures
Emergency Measures
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In 2024, the Company strengthened health protection for employees during high-temperature weather,formulating the Heat Prevention and Cooling Work Plan and the Management Standards for Heat Preventionand Cooling Health Package Provision, and collaborated with medical institutions to purchase professionalheat prevention and cooling services. The Company distributed over 60,000 bottles of Huoxiangzhengqi Liquid,Compound Radix Isatidis, and other heat prevention and cooling medicines, held 40 heat prevention and coolinglectures, and produced multiple health promotion videos for heat prevention and cooling during high-temperatureseasons, which were sent to all employees for learning.
In recent years, with the increase in the production capacity of Heyixing, the number of new employees hasbeen rising year by year, leading to an increase in work-related injury frequency. To change this situation,the Company introduced a professional team to incorporate physical training into the onboarding trainingfor new employees. Before the training, high-risk groups were identified through endurance tests, body fatmeasurements, etc. During the training, theoretical learning on pathological mechanisms and preventionmethods was conducted, combined with practical training on aerobic exercise, spinal stability training, andpower technique familiarization. Through the above training, the number of work-related injuries amongnew employees of Heyixing in 2024 has decreased by 91.79% compared to 2023, signicantly reducing theincidence of work-related injuries.
Physical Training for New Employees at Heyixing
Safety Training
The Company further improves the safety production and training system, revising the Regulations on Safety Education andTraining Management and the List of Tasks for the Safety Education and Training Outline. Based on the occupational health andsafety risks and management needs of di?erent positions, targeted occupational health and safety education and training areconducted.In 2024, we continued to carry out special training on safety production, such as "Month of Safety Production" and "Monthof Fire Safety", we e?ectively enhanced employees' re safety awareness and skills. In addition, we innovatively conductedtwenty-eight sessions of the "Three Ones" emergency rescue special training, using a combination of theoretical explanations,demonstration operations, testing assessments, and practical drills, creating a positive occupational health and safety culture,and enhancing overall safety awareness and emergency response capabilities.
Case
Case
Conducting Heat Prevention and Cooling Work to Prevent Employees from Heat Stroke
Organizing Physical Training for New Employees to Reduce Work-related Injuries
In May 2024, the Company held the 2024 annual occupational health training, covering knowledge related tooccupational disease prevention and control laws and regulations, identication and prevention of occupationalhazard factors, and employee health monitoring management. This training e?ectively raises the occupationalhealth management awareness of the participants.
Training for Occupational Health Certication
In March 2024, the Company focused on the annual safety work key points and strategy planning andconducted the "Everyone Knows Emergency Response" special training, aimed at improving employees' abilityto identify and respond to various safety risks, promoting the e?cient implementation of the Company's annualsafety work and strategy planning.
The "Everyone Knows Emergency Response" Special Training
Case
Case
Training for Enhancing Emergency Management Capabilities
Occupational Health Certication Training
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2024 Environmental,Social and Governance Report
In June 2024, the Company successfully held two sessions of specialized training on safety management formiddle and senior leaders, attended by high-level executives such as the chairman and CEO, as well as key andresponsible safety personnel from subsidiaries, workshops, and departments. The training content included an in-depth interpretation of the major accident hazard identication standards in the industrial and trade sector and ananalysis of new regulations and requirements for production safety and re protection.
Training for Specialized Safety Management for Middle and Senior LeadersIn addition, to enhance employees' occupational health literacy, the Company regularly organized a series of activities forthe "Occupational Disease Prevention Law Promotion Week", include correct use of personal protective equipment, andoccupational health lectures, reaching over 20,000 participants and strengthening employees' awareness of occupational healthMental HealthThe Company attaches great importance to employees' mental health. We launched a public account "Communication fromHeart to Heart", which released information relating to mental health knowledge 51 times (through a total of 102 articles) in2024, and provided employees with convenient learning channels. Meanwhile, we arranged professionals to provide mentalhealth counseling services, carried out more than 20 mental health lectures for grass-roots employees, carried out psychologicalcounseling groups, psychological counseling sta? training, continue to strengthen the construction of employees' mental healthprotection system, and promote the development of employees' mental health.
CaseSpecialized Training on Safety Management for Middle and Senior Leaders
Metrics and Targets
The Company has established and continuously updates specic goals and indicators closely related to occupational healthand safety work, regularly tracking their progress. We require all business partners, including suppliers and distributors, tostrictly adhere to these goals and indicators, working together to create a safe and healthy work environment. Using 2022 as thebaseline year, the Company has set a clear goal of achieving zero major safety production accidents each year in the future. In2024, all annual occupational health and safety goals of were successfully achieved.
The Company regularly uses professional assessment tools and approaches to comprehensively monitor the health and safetyperformance of employees and contractors, conducts in-depth analysis of the monitoring results, and formulates targetedimprovement measures.
Number of majorsafety productionincidents2024 Target
2024 Target
2024 TargetAchievement
2024 TargetAchievement
Timeliness rate ofhazard recticationNumber of productionsafety liability incidentsabove the general level
Employee safetytraining rate
2024 Occupational Health and Safety Goals
00100%100%
≥
95.5%
≥95%
AchievementAchievement
Safety production maturity
97.1
points
≥
96.15
points
Achievement
Achievement
Internal emergency responserate for emergent incidents
100%100%
Achievement
Achievement
Completion rate ofemergency plan drills
100%
100%
Achievement
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Domestic Public Welfare
Public Welfare and Rural RevitalizationKweichow Moutai has always adhered to the responsibility concept of "Big Brand and Big Responsibility", carried out variouspublic welfare activities and helped rural revitalization with practical actions. Practice the responsibility and responsibility of themountain with practical actions, always remember the path we have come, be grateful, and rmly fulll our social responsibilities.We are committed to contributing to the harmonious development of society.
We always uphold our sense of responsibility and commitment, using public welfare as a bridge to spread warmth. We deeplyengage in various public welfare activities within the country and extend our e?orts across mountains and seas to spread hopeoverseas. Through building schools, dispatching medical teams, and carrying out environmental cooperation, we weave a globalnetwork of public welfare with love and action, continuously illuminating the warmth of humanity and working together to createa better world.
With our own resources and advantages, we actively carry out diversied social welfare projects in China. Among them, the"China Moutai, Backbone of the Nation" Public Welfare Scholarship Program has invested a total of RMB 1.3 billion, helpingover 250,000 students achieve their dreams of attending universities.
Social Welfare
The Third SynBio Challenges award ceremony
In August 2024, the Third SynBio Challenges2024, guided and hosted by the Synthetic BiologyBranch of the Chinese Society of Biotechnology,was successfully concluded in Shenzhen. As theexclusive partner, Moutai, with its admiration forscience and technology, supported this event thatbrought together wisdom and innovation, andsupported the youth talent cultivation in the fieldof synthetic biology in China. The Company'sCEO, WANG Li, attended and shared insights onthe future development of the synthetic biologyindustry and Moutai's role, and together explored theapplication scenarios for cross-temporal and cross-spatial communication between first-generationbiotechnology and fth-generation biotechnology.
CaseMoutai Supports the Successful Completion of the Third SynBio Challenges
In 2024, Kweichow Moutai invested RMB 6 millionin a special fund to take the lead in the field ofsynthetic biology, aiming to replace non-degradablefossil energy materials with bio-based biodegradablematerials. While meeting the company's own greendevelopment, it also helps the industrialization andcommercialization process of new industries ofbiodegradable materials and enhances the marketcompetitiveness.
Kweichow Moutai Releases the List of Leading Projects
CaseEmbarking on the New Track in the Bio-Economy
In 2024, the "Happy to Have Great Luck·Togetherfor the Mountains and Rivers - Moutai 1935·Seekingthe Way in China" event was hosted in 7 stops:
Kaifeng, Ningbo, Yangzhou, Huaian, Jining, Tianjinand Beijing. At each event stop, guests are guidedto deeply experience the rich historical heritage andharmonious coexistence of natural ecology in the city.Together, they explored the magnicent landscapes,historical culture and thriving development along theGrand Canal, appreciating the charm of nature, thedepth of human civilization, and the city's prosperity.
"Moutai 1935 · Great Physicians of the Nation" Public
Welfare Foundation Donation in Jining
Case"Moutai 1935 · Great Physicians of the Nation" Public Welfare Foundation Donation
"China Moutai, Backbone ofthe Nation" Public WelfareScholarship ProgramRMB
millionRMB
million
RMB
3.28
million
RMB
6.5
millionRMB
2.4
million
RMB582,000
Moutai 1935 · GreatPhysicians of the Nation
Han Jiang ·Dedicated HeritageMoutai Prince ·Bright Youngsters
Laymau ·Growth in Love
Guizhou Daqu·Love inEvery Drop of Liquor
Wangmao StarProjectRMB
694,800
2024 Public Welfare Projects and Donation Amounts
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Overseas Public Welfare
The company supports overseas distributors and actively fullls social responsibilities by extensively carrying out charitableactivities. These include providing support to overseas medical teams, local orphanages, and educational assistance programs,demonstrating love and care through practical actions and highlighting the Company's commitment and humanitarian concern.
In 2024, Kweichow Moutai supported the "EasternTraditional Colors Project", providing a researchplatform for domestic institutions and scholars to deeplyexplore the essence of traditional color culture, andto explore its innovative applications in modern life.Currently, the project has completed documentaryresearch on 17 colors from the "Song Dynasty AncientArchitecture Gaoping Kaihua Temple Color Spectrum",formed the "Kaihua Temple Color Card", producedthe "Qianlong Color Card" containing 33 colors, andcompleted silk restoration for approximately 20 colors.Additionally, the Company sponsored the documentarySeeking Color of China, which uses traditional Chinesecolors as a medium to rediscover the aesthetic cultureof Eastern China.The International Promotion of Eastern
Traditional Colors
"Han Jiang · Dedicated Heritage" Special Public
Welfare Fund Donation
In November 2024, the Mozambican channel operatorssent rice, noodles, oil and other materials and dailynecessities such as clothing and schoolbags to thechildren. The children in the orphanage speciallyprepared Chinese dances, songs and other programsto express their gratitude in the form of artisticperformances, so that love and warmth can betransmitted in a foreign country.
Donation Activity
Case
Case
Since 2021, Moutai has established the "Han Jiang· Dedicated Heritage" Special Public Welfare Fundin partnership with the "China Foundation ForCultural Heritage Conservation". From assisting inthe restoration of Shang Dynasty relics to protectingcalligraphy culture, the Company has been activelyfulfilling its social responsibility, consistently movingtoward good causes. On November 21, 2024, Moutaiand the China Foundation for Cultural HeritageConservation donated RMB 300,000 to the Tai'anTaishan Protection and Development Foundation,contributing to the protection of the relics.
CaseProtecting Mount Tai Stone Inscriptions, Inheriting the Beauty of Chinese Characters
Eastern Splendor, National Elegance - Annual Eastern Traditional Colors
Donation Activity at Bell ACC Orphanage in Mozambique
On World Environment Day 2024, the Company held an environmental protection activity in collaboration withRenhuai City. "Green and Clean Chishui" young Moutai volunteers conducted a river patrol and beach cleaningaction along the Wuma River section, covering a two-kilometer area. Meanwhile, the volunteers promoteenvironmental protection knowledge to surrounding residents and tourists, enhancing public awareness ofenvironmental protection.
"Green and Clean Chishui" Young Moutai Volunteer River Patrol Activity
Volunteer ActivitiesThe Company established a volunteer service task force, engaging in environmental and social public welfare, and carrying outa series of colorful volunteer activities. In 2024, the Company had over 3,500 hours of volunteer activity in total.In terms of environmental public welfare, the volunteer service task force organized a total of 27 environmental activities,attracting over 1,600 enthusiastic participants. In terms of social public welfare, the task force fully leveraged the exemplaryrole of young volunteers, conducting over 100 volunteer service activities such as love assistance and environmental protectionduring the Lei Feng Volunteer Service Month, important holidays, and major company events, with participation exceeding 1,000people, conveying warmth and positive energy to society.Case"Green and Clean Chishui" Moutai Youth Volunteer River Patrol Activity
"Little Light Public Welfare" is spontaneouslyorganized by the Company's employees. Since itsestablishment in September 2020, it has continuedto carry out activities such as helping families withdifficulties, caring for left-behind children, helpingstudents with difficulties, visiting veterans, andcomforting sanitation workers, and has practicedthe Company's love and responsibility with practicalactions.
"Little Light Public Welfare" Activity
CaseOrganizing the "Little Light Public Welfare" Activities
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Sharing Benets: SharingValue with Society
FutureOutlook
The Company focuses on four aspects: "responsibility implementation, industrial development, dual support for intelligence andambition, and consumer assistance", fully utilizing its resource advantages to carry out targeted assistance work and contributeto rural revitalization.The Company complies with the Law of the People's Republic of China on the Promotion of Rural Revitalization. In 2024, theCompany formulated the 2024 Work Plan for Rural Revitalization Assistance, identied ve areas and 14 key tasks, held specialmeeting on rural revitalization assistance work, and promote new progress and achievements in assistance work. We e?ectivelypromoted the comprehensive development of the assisted areas by sending outstanding managers to take temporary posts,increasing support for industries and employment, and promoting the development of characteristic industries.Supporting agriculturethrough industry,promoting farmers'income growth
The Company adhered to the strategy of "supporting agriculture through industry" by buildingorganic raw material bases and implementing the "Five-One" project, supporting planting farmers,and investing over RMB 200 million in 2024, beneting more than 110,000 farming households. Inaddition, we deeply implemented the "42·15" work mechanism, continuously guiding workshopsto participate in promoting rural revitalization in Renhuai City. Through technical training and othermeasures, we constantly helped strengthen the collective economy of the assisted villages.Integrating culturaland tourism industries,
expanding theconsumer market
The Company guided party organizations at all levels to utilize the red historical and culturalresources and assistance assets at the assistance points to carry out party member education andtraining. In 2024, our party organizations at all levels conducted activities at the assistance points18 times, driving economic income of over RMB 260,000.Stimulating industrial
momentum, drivingproject construction
The Company focused on the development of rural characteristic industries, continuously trackingand promoting the construction of assistance projects, and strictly verifying according to the higher-level rural revitalization assistance project entry mechanism. In addition, Moutai also createdmultiple ecological agriculture brands, promoting the collective economic income of villages toreach RMB 1.8738 million, e?ectively stimulating the momentum of characteristic industries.
Rural Revitalization
The Company consistently practices the philosophy of co-creation and shared benets, adhering to the principles of supportingagriculture and promoting rural revitalization. In the Chishui River Basin, Moutai's organic sorghum base covers 72 towns and482 villages, beneting more than 110,000 farmers, including over 14,000 households that have lifted themselves out of poverty.
Assisting productsin reaching broadermarkets, promoting
employment and
income growth
The Company continuously advanced agricultural product procurement work, deepeningcooperation with supply guarantee bases, and helped the sales of agricultural products to achieverevenue of more than RMB 25 million, e?ectively promoting agricultural products from mountainousareas to urban markets, and driving employment for more than 2,700 people.
Since supporting Daozhen in 2015, Kweichow Moutai has donated
a total of 132 million yuan to the edible fungus project, achieving
an annual output value of more than RMB 120 million, creating
employment for over 1,000 households, with each household
increasing its income by more than RMB 50,000 on average. At the
same time, we have actively supported the deep processing industry
and high-value-added products, promoted research and cooperation
in edible fungus science, and explored the use of distillery dregs
to make mushroom sticks, which are then converted into organic
fertilizer. This initiative aims to create an ecological recycling chain
between liquor production and edible fungus cultivation, continuously
driving the economic benets of the edible fungus industry.
CaseKweichow Moutai Supports the Development of the Edible Fungus Industry in Daozhen
Company Leaders Inspect the Development
of the Edible Fungus Industry in Daozhen
Future OutlookIn 2025, we attune ourselves to the rhythm of the new era, and adhere to the core corporate values of "Follow Nature andRespect the Man". With a benevolent heart, we will craft exquisite baijiu, forge our brand with virtuous deeds, and bridge theworld with rich cultural heritage. We are committed to deeply embedding the principles of sustainability, embracing greenenvironmental protection, and shouldering social responsibility. By enhancing the efficacy of corporate governance andadvancing the modernization of our corporate structure, we will confront future challenges with a pioneering spirit. Our goal is toensure the Company's enduring and stable growth, thereby generating greater value for society.
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
To the management team and stakeholders of Kweichow Moutai Co., Ltd.,SynTao Green Finance Co., Ltd. (hereinafter referred to as “SynTao GF”) was commissioned by Kweichow MoutaiCo., Ltd. (hereinafter referred to as “Kweichow Moutai”) to conduct an independent third-party assurance of therelevant information disclosed in its 2024 Environmental, Social and Governance Report of Kweichow Moutai(hereinafter referred to as “ESG Report”). The assurance conducted by SynTao GF is outlined as follows:
?. Timeframe
The assurance was limited to the information disclosed in the ESG Report for the period from January ?, ????, toDecember ??, ????. Any relevant information outside this reporting period were not within the scope of thisassurance.
The responsibility of Kweichow Moutai was to ensure the integrity and accuracy of the content of the ESG Reportand the information provided to SynTao GF, with no signi?cant misrepresentations.The responsibility of SynTao GF was to issue an independent assurance statement based on the informationprovided by Kweichow Moutai under AA1000 Assurance Standard v3 (AA1000AS v3).
?. Information and Data ScopeThe scope of this assurance was limited to the information concerning Kweichow Moutai covered in the ESG Reportand did not include information from third parties such as Kweichow Moutai's suppliers. Information disclosed inthe ESG Report that had already been audited or veri?ed by independent third-party organisations were notre-veri?ed in this process.?. Assurance ScopeThe assurance scope aimed to assess: ?) whether the ESG Report complied with the Inclusivity, Materiality,Responsiveness, and Impact principles outlined in AA1000AP (2018), and ?) the reliability and quality of certainsustainability indicators, including:
Scope of Assurance
Responsibilities
Independent Assurance Statement for the2024 Environmental, Social and Governance Report of Kweichow Moutai Co., Ltd.
Assurance Statement: ???? Environmental, Social and Governance Report of Kweichow Moutai
Total number of suppliersTotal number of key suppliersPercentage of total spend on key suppliersTotal number of signi?cant suppliersNon-renewable energy consumptionRenewable energy consumptionTotal water extractionExtraction of freshwaterFreshwater consumption in water-scarce areasDirect GHG emissions (Scope ?)Indirect GHG emissions (Scope ?)
GHG emissions (Scope ?): Category ? - Purchased goods& servicesGHG emissions (Scope ?): Category ? - Energy and fuelGHG emissions (Scope ?): Category ? - Upstreamtransportation & distributionGHG emissions (Scope ?): Category ? - Waste generatedin operationsGHG emissions (Scope ?): Category ? - EmployeescommutingGHG emissions (Scope ?): Category ? - Downstreamtransportation & distributionGHG emissions (Scope ?): Category ?? - Treatment ofend-of-life sold products
···········
·······
?. Assurance PlanSynTao GF recorded key resource requirements, evidence to be collected, tasks, activities, deliverables, andtimelines in the schedule, forming a plan.
?. IndependenceSynTao GF declares that, SynTao GF and Kweichow Moutai are entirely independent entities. SynTao GF is free frombias or con?ict of interest with Kweichow Moutai.?. CapabilitySynTao GF specializes in providing professional consulting, research, and training services in sustainable ?nance,including environmental, social, and corporate governance (ESG) ratings, green ?nance strategy, Environmentaland Social Risk Management (ESRM), green ?nance product innovation, research on green ?nance and responsibleinvestment, green bond assurance, as well as green credit and responsible investment capacity building.SynTao GF is a licensed assurance provider of AA1000AS v3. This license authorizes SynTao GF to use and complywith AccountAbility's AA1000AS v3, as well as the use of the AA1000AS v3 markings related to sustainabilityassurance services.
?. Information CollectionFollowing principles of clarity, balance, completeness, and timeliness, SynTao GF assessed the quality of thecollected information.?. Conducting Assurance
?. Any other necessary work deemed by SynTao GF
Assurance Methodology
Independence and Capability
Conducting interviews with sustainability management, including responsible employee from variousdepartments including: O?ce of board of directors, Corporate culture, Ecology protection, Auditing, HR, etc.Verifying relevant documents, data, and other materials provided by Kweichow Moutai.Assessing whether the information and data in the ESG Report comply with the inclusivity, materiality,responsiveness, and impact principles outlined in AA1000AP (2018).Assessing if the report follows Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE —Compilation of Sustainable Development Reports.
····
SynTao GF utilized AA1000AS v3 as the reference standard for assurance services. AA1000AS v3 refers to theassurance standard created by AccountAbility. The type and depth of assurance conducted in this instance werecategorized as “Type ?, Moderate Assurance”.The assurance statement was prepared by SynTao GF following the SynTao GF Non-Financial Report AssuranceMethod.In addition to AA1000AS v3, the standards, principles, and initiatives referenced by SynTao GF included: GlobalReporting Initiative GRI Standards / Hong Kong Exchanges and Clearing Limited ESG Reporting Code / Task Forceon Climate-related Financial Disclosures TCFD Framework / International Sustainability Standards Board (ISSB)IFRS S1 - General Requirements for Disclosures of Sustainability-related Financial Information and IFRS S2Climate-related Disclosures / European Union Corporate Sustainability Reporting Directive (CSRD) / GreenhouseGas Protocol (GHG Protocol), among others.
Standards
Assurance Statement: ???? Environmental, Social and Governance Report of Kweichow Moutai
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AppendixAboutKweichow Moutai
2024 Environmental,Social and Governance Report
Shanghai Stock Exchange IndexDimensionNo.IssueCorresponding ClauseCorresponding Chapter
Environment
1Climate change tacklingArticles 21 - 28Climate Change Tackling2Pollutant dischargeArticle 30Protecting the Green Environment3Waste disposalArticle 31Protecting the Green Environment4Ecosystem and biodiversity protectionArticle 32Protecting the Green Environment
Environmental compliancemanagement
Article 33Protecting the Green Environment6Energy usageArticle 35E?cient Resource Utilization7Usage of water resourcesArticle 36E?cient Resource Utilization8Circular economyArticle 37E?cient Resource Utilization
Society
9Rural revitalizationArticle 39Public Welfare and Rural Revitalization10Contributions to the societyArticle 40Public Welfare and Rural Revitalization11Innovation-drivenArticle 42Technological Innovation12Ethics of science and technologyArticle 43Technological Innovation13Supply chain securityArticle 45Sustainable Supply Chain
Equal treatment to small and medium-sized enterprises
Article 46Sustainable Supply Chain
Safety and quality of products andservices
Article 47Product and Service Quality
Data security and customer privacyprotection
Article 48Corporate Governance17EmployeesArticle 50
Employee ManagementHealth and Safety
Governance
18Due diligenceArticle 52Risk and Compliance Management19Communications with stakeholdersArticle 53Stakeholder Communication
Anti-commercial bribery and anti-corruption
Article 55Business Integrity21Anti-unfair competitionArticle 56Anti-unfair CompetitionAssurance Provider: SynTao Green Finance Co., Ltd.
Assurance Team Lead: WU, Yanjing
April ?, ????
Members of SynTao GF's assurance team hold quali?cations in AA ???? Certi?ed Sustainability AssurancePractitioner (CSAP), ISO????? internal auditing, CFA ESG, EFFAS Certi?ed ESG Analyst, GRI training certi?cation,carbon asset management, and other quali?cations in the ?eld of sustainable development. The team consists ofprofessionals with extensive experience in the ?eld of sustainable development and a comprehensiveunderstanding of the AA1000AS v3 standard.SynTao GF relied entirely on the information provided by Kweichow Moutai required in the assurance of this ESGReport and did not collect information from other external sources. Interviews also did not involve externalstakeholders.Limitations
?. AA???? Accountability Principles (????)Inclusivity: Kweichow Moutai identi?ed the company's key stakeholders, it communicated with them continuouslythrough various ways, and publicly disclosed the communication outcomes. Kweichow Moutai provides necessarycapacity building for stakeholder engagement.Materiality: Kweichow Moutai collected opinions from key stakeholders, identi?ed the ESG issues that are highlyrelevant to the company, and have clear procedures to prioritise material issues.Responsiveness: Kweichow Moutai has responded to the material issues of concern to its key stakeholders andreviewed its performance of relevant targets, and has invested in relevant capacity building.Impact: Kweichow Moutai has established a process for measuring, evaluating, and managing the company'simpacts, and has integrated some of these impacts into the company's material issues and strategic objectives.?. Assessment of Selected Sustainability IndicatorsSynTao GF has veri?ed the selected ?? sustainability indicators in the ESG Report.
Content for Assurance
ConclusionSynTao GF did not identify any non-compliance with the Inclusivity, Materiality, Responsiveness, and Impactprinciples outlined in AA1000AP (2018) in the 2024 Environmental, Social and Governance Report of KweichowMoutai.SynTao GF did not identify any situation that undermines the reliability and quality of the selected ??sustainability indicators in the 2024 Environmental, Social and Governance Report of Kweichow Moutai.Stakeholders can take the ?? sustainability indicators as reference.The 2024 Environmental, Social and Governance Report of Kweichow Moutai was not found to have beenprepared without reference to the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE —Compilation of Sustainable Development Reports.
···
Assurance Statement: ???? Environmental, Social and Governance Report of Kweichow Moutai
Assurance Team Lead: WU, Yanjing
April ?, ????
134133About the ReportMessage from
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AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
ChapterLaws and RegulationsInternal Policies and RegulationsSharing Benets: Sharing Value with Society
Product andService Quality
Food Safety Law of the People's Republic of ChinaAdvertising Law of the People's Republic of ChinaLaw of the People's Republic of China on theProtection of Consumer Rights and Interests
A List of Applicable Laws, Regulations, and OtherRequirements for Quality and Food SafetyManagement Measures for Product Replacement(Rework)Product Withdrawal (Recall) Management RegulationsManagement Measures for Customer Consultation andComplaintsStandard Service Language for Exclusive StoresStandard Service ManualManagement Measures for the Marketing and Promotionof Moutai Baijiu Distribution SystemAdvertising Placement Management MeasuresNews Publicity Management MeasuresKweichow Moutai Baijiu Channel Partner ManagementMeasuresOnline Brand Promotion Activity ImplementationSpecicationsO?ine Brand Activity Implementation SpecicationsKweichow Moutai Co., Ltd. Responsible MarketingPolicy
EmployeeManagement
Labor Law of the People's Republic of ChinaLabor Contract Law of the People's Republic ofChinaRegulations on the Prohibition of Child LaborTrade Union Law of the People's Republic of ChinaLaw of the People's Republic of China on theProtection of Rights and Interests of Women
Employee Recruitment Management MeasuresKweichow Moutai Co., Ltd Employee' Rights andInterests Protection PolicyEmployee Rights and Interests Protection ManagementMeasuresManagement Measures for the Introduction of High-levelTalents and Talents in Urgent NeedImplementation Rules for the introduction of DoctoralStudentsPosition Level Management MeasuresAnnual Work Target Management RegulationsDetailed Rules for the Management of Additions andDeductions in the Annual Comprehensive AssessmentHigh-Quality Development Performance AssessmentManagement RegulationsProfessional and Technical Personnel Title Evaluationand Appointment Management MeasuresOccupational Skill Level Recognition and AppointmentManagement MeasuresAttendance Management Measures
Health and Safety
Occupational Disease Prevention and Control Lawof the People's Republic of ChinaLaw of the People's Republic of China on WorkSafety
Kweichow Moutai Co., Ltd. Occupational Health andSafety PolicyHeat Prevention and Cooling Work PlanManagement Standards for Heat Prevention andCooling Health Package ProvisionSafety Regulations for Operations in the ConnedSpace of Kweichow Moutai Co., Ltd.Regulations on Safety Education and TrainingManagementList of Tasks for the Safety Education and TrainingOutlinePublic Welfareand RuralRevitalization
Law of the People's Republic of China on thePromotion of Rural Revitalization
2024 Work Plan for Rural Revitalization Assistance
ESG Policies and Regulations
ChapterLaws and RegulationsInternal Policies and Regulations
Symbiotic Coexistence: Coexisting Harmoniously with Nature
Climate ChangeTackling
Opinions of the CPC Central Committee and theState Council on Comprehensively and CorrectlyImplementing the New Development Concept andEngaging in Carbon Peak and NeutralityAction Plan for Carbon Peak by 2030Guidelines for Greenhouse Gas EmissionsCalculation Methods and Reporting in Food,Tobacco, Alcoholic Beverage, Beverage andRened Tea Enterprises (Trial)Greenhouse Gas Calculation System: Code ofConduct for Enterprise Calculation and Reporting
Carbon Peak and Carbon Neutrality Action Plan
E?cient ResourceUtilization
Law of the People's Republic of China on EnergyConservationWater Pollution Prevention and Control Law of thePeople's Republic of ChinaWater Law of the People's Republic of ChinaWater Conservation Regulations
Energy Management ManualEnergy Management SystemEnergy Operation Management RegulationsEnergy Data Management RegulationsPlanning and Implementation Plan of Green LogisticsSupplier Sustainable Development ImplementationMethodWater Use Enhancement Action Plan (2024-2026)Implementation Plan for the Reduction and GreenDevelopment of Packaging MaterialsNew Product Development Management RegulationsPackaging Material Technology Blacklist (EnvironmentalProtection)List of Restricted and Prohibited Packaging MaterialsNegative List of Packaging Materials for New ProductDevelopmentKweichow Moutai Glass Bottle Recycling and ReusePilot Implementation PlanMoutai Baijiu Empty Bottle Recycling ProjectImplementation Plan
Protectingthe GreenEnvironment
Environmental Protection Law of the People'sRepublic of ChinaEmergency Response Law of the People's Republicof ChinaWater Pollution Prevention and Control Law of thePeople's Republic of ChinaLaw of the People's Republic of China on thePrevention and Control of Atmospheric PollutionEmissions Standards for Air PollutantsLaw of the People's Republic of China on thePrevention and Control of Environmental Pollutionby Solid WasteAnti-Food Waste Law of the People's Republic ofChinaKunming-Montreal Global Biodiversity FrameworkGB/T 18356-2007 Product of GeographicalIndication - Kweichow Moutai Liquor
Overall Plan for Building Xi Jinping's EcologicalCivilization Practice Demonstration Base and Buildingthe Company as a Role Model for EnvironmentalProtection in the IndustryEnvironmental Protection Compliance GuidelinesManagement Measures for the Assessment ofEnvironmental Protection WorkEnvironmental Protection Management RegulationsKweichow Moutai Co., Ltd. ESG Governance FrameworkEmergency Plan for Sudden Environmental IncidentsTechnical Requirements for Brewing WastewaterTreatmentSolid Waste Control ProcedureRegulations on the Management of Waste MaterialsRecyclingRegulations on the Management of Hazardous WasteManagement Rules for Moutai Baijiu Brewing Waste ofKweichow Moutai Co., Ltd (the "Rules")Implementation Opinions on the Coordinated Protectionof Ecosystems and Biological Species
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Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
ChapterLaws and RegulationsInternal Policies and RegulationsBusiness Ethics
Kweichow Moutai Co., Ltd. Supplier Code of Conduct2024 Procurement Integrity Warning Education WorkPlanManagement Measures for Letters and Visits ofKweichow Moutai Co., Ltd.TechnologicalInnovation
Law of the People's Republic of China on Scienticand Technological ProgressOpinions on Strengthening the Governance ofScientic and Technological EthicsMeasures for Scientic and Technological EthicsReview (for Trial Implementation)
Charter of the Science and Technology CommitteeRegulations on the Management of Scientic andTechnological Research and Development ProjectsImplementation Rules for Micro Scientic andTechnological Research and Development ProjectsSmart Moutai 2.0 Top-Level Plan (2024-2027 for theJoint Stock Company)
SustainableSupply Chain
/
Supplier Management MeasuresKweichow Moutai Co., Ltd. Supplier Code of ConductRisk Assessment Meeting MechanismSupplier Sustainable Development Implementation Planand Green Indicator SystemImplementation Plan for the Reduction and GreenDevelopment of Packaging MaterialsImplementation Plan for Product Packaging Materialsfor Green Supply ChainsFinished Liquor Outer Packaging Materials RecyclingManagement SystemRegulations on the Management of Waste MaterialsRecyclingMoutai Baijiu Sorghum and Wheat SupplierManagement RegulationsPackaging Materials Supplier Management RulesChannel Partner Management MeasuresMarket Maintenance Management MeasuresManagement Measures for Customer Consultation andComplaintsMarketing Advisory Group Management Measures
ChapterLaws and RegulationsInternal Policies and Regulations
Mutual Success: Enabling Modern Governance within the Organization
CorporateGovernance
Company Law of the People's Republic of ChinaSecurities Law of the People's Republic of ChinaCode of Corporate Governance for ListedCompaniesGuidelines of the Shanghai Stock Exchange onthe Self-Regulation of Listed Companies No.5-Transactions and Related Transactions
Articles of AssociationArticles of Association and the Rules of Procedure forShareholders' MeetingMeasures for Performance Assessment of Members ofthe ManagementMeasures for Remuneration Management of Membersof the ManagementCompliance Management MeasuresInternal Control Management MeasuresDecision-making Policy for Related TransactionsRisk Management MeasuresRisk Management Enhancement Action Plan (2024-2026)Risk Management Operating ProceduresManagement Measures for Network and InformationSecurityTerminal Security Management RegulationsNetwork and Information Security Emergency ResponsePlan2024 Cybersecurity Emergency Drill PlanKweichow Moutai Co., Ltd. Data and Privacy Policy
Business Ethics
Company Law of the People's Republic of ChinaAnti-Unfair Competition Law of the People'sRepublic of ChinaAnti-Monopoly Law of the People's Republic ofChinaOpinions of the State Council on Establishing a FairCompetition Review System in the Building of aMarket SystemRegulations on Handling Letters and VisitsRules for Disciplinary Inspection and SupervisionOrgans on Handling Reports and Complaints
Kweichow Moutai Co., Ltd. Business Ethics PolicySeveral Measures of the Party Committee of theCompany for Further Strengthening Oversight forLeadership Teams and Their HeadsNegative List of Employees' ActsMeasures for Handling Violations of Rules, Disciplines,and Laws by EmployeesProhibitive Provisions for Integrity in Construction ofEngineering ProjectsProhibitive Provisions for Procurement IntegrityProhibitive Provisions for Integrity in Resources SupplyProhibitive Provisions for Integrity in MarketingPersonnelProvisions for the Registration and Filing of Constructionof Engineering Projects and Investment of Fixed AssetsAnti-Monopoly Compliance GuideAnti-Unfair Competition Compliance GuideWork Safety Compliance GuideEnvironmental Protection Compliance GuidelinesRules on Supplier Management for Husks and StrawsRules on Supplier Management for Hardware and Low-Consumption Materials
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Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance Report
IndexUnit202420232022Waterresourceconsumption
Total water resource consumption10,000 m
813.89867.66892.11
Water resource consumptionintensity
10,000 m
/1 million unitsof industrial output
0.00820.0098 0.0117
Freshwater consumption in water-scarce areas
10,000 m
0.000.000.00
Usage ofpackagingmaterials
Glass bottlestons81,820.2371,117.67/Color cardboard boxestons40,391.3235,697.68/Ribbonstons80.9176.61/Metal bottle capstons1,070.33 799.06/Plastic bottle capstons3,336.162,886.48/Ceramic bottlestons11,676.2511,429.43/Cardboard boxestons13,511.2112,156.04/Bagstons9,526.98 9,285.11 /Totaltons161,413.39143,448.07 /Wastewaterdischargevolume
Wastewater discharge volume10,000 tons218.92 215.17 224.38Wastewater discharge intensity
10,000 tons/1 millionunits of industrial output
0.0022 0.0025 0.0030
Wastegenerationvolume
Total waste tons518,043.71467,701.42447,224.90Intensity of total waste
tons per RMB 100million ofindustrial output
520.61543.41
597.95Utilization rate of production waste%100100100Wastedisposal andrecyclingvolume
Total amount of recycling/reusetons465,947.37436,853.70415,566.92Total waste incinerated withenergy recovery
tons52,096.34 30,847.7231,657.98Food wasteFood waste recycling
tons849.73774.73562.21
Areas with water consumption less than 1,700 m
/(person*year)
Correction to 2023 hazardous waste data, hence change in intensity
All food waste is used for industrial oil rening, achieving 100% resource utilisation
ESG Data SheetEnvironmental Dimension
IndexUnit202420232022
Direct GHG emissions (Scope 1)tCO
e287,811 244,895 256,157Indirect GHG emissions (Scope 2)tCO
e2,536 9,883 56,705Total GHG emissions (Scopes 1, 2)tCO
e290,347 254,778 312,862GHG emissions intensity (Scopes 1, 2)
tCO
e/1 million units ofindustrial output
2.91 2.95 4.12
Energyconsumption
Natural gas consumption10,000m
12,687.18 10,557.09 11,176.05Gasoline consumptiontons399.41 355.98 257.47Diesel consumptiontons849.92 750.11 643.25Purchased electricityMWh124,472.10 108,694.41 99,030.40Purchased heatGJ4,375.02 1,746.12 2,070.56Non-renewable energyconsumption
tce171,186 144,174 158,347Renewable energy consumptiontce14,827 11,270 3,852Direct energy consumptiontce170,566 142,026 149,958Indirect energy consumptiontce15,447 13,418 12,241Comprehensive energyconsumption
tce186,013 155,444 162,199Comprehensive energyconsumption intensity
tce/1 million units of
industrial output
1.86 1.80 2.14
Waterresourceconsumption
Reuse of reclaimed water10,000 m
24.24 19.70 19.14
Proportion of reclaimed water%3.072.322.15Extraction of freshwater10,000 m
635.11658.50 701.95
Freshwater extraction intensity
10,000 m
/1 million units
of industrial output
0.00640.0079 0.0092
Total water extraction10,000 m
635.11658.50 701.95
Water recycling rate%85.4587.0782.05Consumption of freshwater10,000 m
789.65847.96 892.11
Freshwater consumption intensity
10,000 m
/1 million units
of industrial output
0.00790.0098 0.0117
140139About the ReportMessage from
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SustainableDevelopment
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Sharing Benets: SharingValue with SocietyMutual Success: Enabling ModernGovernance within the Organization
FutureOutlook
AppendixAboutKweichow Moutai2024 Environmental,Social and Governance ReportSocial DimensionIndexUnit202420232022
Employment
Total number of employees Person34,75033,30231,413Number of female employees Person11,22110,94510,355Number of male employees Person23,52922,35721,058Proportion of women in senior management%25.0028.17/Proportion of women in junior management%24.2923.52/Proportion of women in revenue-generatingfunctions
%34.5233.67/Proportion of women in STEM-related positions%17.4716.89/Externalrecruitment
Total number of new employeesPerson1,8392,273/
Employee rights
Collective contract signing rate%100100100Number of violations of legal rights and interestsof employees
/000
Technologicalinnovation
R&D investmentRMB million695622559Number of patent applicationsPiece8310770Number of authorized patentsPiece496934Number of valid patentsPiece329287226
Sustainablesupply chain
Total number of suppliers Point701432399Total number of key suppliersPoint966581Total number of signicant suppliersPoint543302302Total number of ordinary suppliersPoint626516Percentage of total spend on key suppliers%19.8129.1531.13Data securityand user privacyprotection
Data security incidentsCase000User privacy breach incidentsCase000
Governance Dimension
IndexUnit202420232022
Board ofdirectorscomposition
Number of directors Person777Number of independent directors Person333Number of female directors Person221Number of employee directors Person111Proportion of independent directors %42.8642.8642.86Number of supervisors Person333Number of employee representativesupervisors
Person111Validity ofthe board ofdirectors
Board of directors meeting Times131314Director attendance rate %100100100Average term of directors Years1.51.21.1Compliancemanagementtraining
Compliance management trainingsessions
Session454925Riskmanagementtraining
Risk management training sessions Session229Integrity riskcontrol
Number of integrity risk points Point21734634
Number of preventive measures Mearsure44163969
Integritytraining
Number of employee integrity
training sessions
Session645239
Number of employees trained in
integrity
Participant34,75033,30231,413
Employee integrity training
coverage rate
%100100100
Number of management integrity
training participants
Participant648627614
Management integrity training
coverage rate
%100100100Unfaircompetition
Number of complaints andreports received regarding unfaircompetition
Case000
About the ReportMessage from
the Chairman
SustainableDevelopmentAboutKweichow Moutai
2024 Environmental,Social and Governance ReportFeedbackDear readers,Thank you very much for reading the Kweichow Moutai 2024 Environmental, Social, and Governance (ESG) Report during yourbusy schedule. Your comments and suggestions on this report are highly appreciated for us to improve the quality and level ofthe report and our social responsibility and ESG e?orts!
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2024 Environmental,Social and Governance Report