Wuliangye Yibin Co., Ltd.
Annual Report 2019
President Zeng Congqin (signature)
April 28, 2020
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Contents
Section I Important Notice, Contents, and Interpretations ................................................................3
Section II Company Profile and Main Financial Highlights ................................................................5
Section III Summary of Company Business .....................................................................................10
Section IV Discussion and Analysis of Operation .............................................................................12
Section V Significant Matters ...........................................................................................................32
Section VI Changes in Shares and Shareholders.............................................................................50
Section VII Preferred Share ...............................................................................................................55
Section VIII Convertible Corporate Bonds ..........................................................................................56
Section IX Directors, Supervisors, Senior Management and Employees .........................................57
Section X Corporate Governance ....................................................................................................66
Section XI Corporate Bonds .............................................................................................................72
Section XII Financial Report ..............................................................................................................73
Section XIII Reference File Directory................................................................................................190
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section I Important Notice, Contents, and InterpretationsI. The board of directors, the board of supervisors, directors, supervisors, and officersof the Company undertake that the content of the Annual Report is true, accurate, andcomplete, and contains no false record, misleading statements, or major omission, andassume joint and several legal liabilities arising therefrom.
II. Zeng Congqin, the person in charge of the Company, Luo Wei, the person incharge of the accounting work, and Luo Jun, the person in charge of the accountinginstitution (accountant in charge) declare and ensure the truthfulness, accuracy, andintegrity of the financial report in the Annual Report.
III. Eight directors should be present at the board meeting auditing the Report andactually seven directors attended. Director Zou Tao was on a business trip and voted on theresolution of this meeting by means of communication. Mr. Han Cheng, an alternatedirector, attended the board meeting without voting rights.
IV. The future plan, development strategy, and other forward-looking statementsincluded in the Report shall not constitute the Company's substantial commitment to theinvestors due to uncertainties, and we remind the investors to notice the investment risks.
V. The Company has disclosed the potential risks in the Report, and we remind theinvestors to notice the investment risks.
VI. The Company designated China Securities Journal, Shanghai Securities News,Securities Times, and CNINFO as the information-disclosure media of the Annual Report2019 of the Company and all the information of the Company shall be subject to theinformation published on the above media.
VII. The profit distribution plan reviewed and adopted at the Board Meeting of theCompany is that: Based on the total capital stock of 3,881,608,005, the Company willdistribute the dividend of RMB 22 in cash (tax inclusive) and 0 bonus share (tax inclusive)to all shareholders for every 10 shares and will not transfer the capital reserve to increasecapital stock.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Interpretations
Terms refers to Interpretations
Company,the Company or Wuliangye refers to WuliangyeYibinCo., Ltd.
Yibin State-owned Assets Supervision State-owned Assets Supervision and
andAdministration Commission refers to Administration Commission of Yibin
Municipal Government
Wuliangye Group Company or the refers to SichuanYibinWuliangyeGroup Co., Ltd.
GroupCompany
Push Group Company refers to SichuanYibinPush Group Co., Ltd.
GlobalGroup Company refers to SichuanYibinGlobal Group Co., Ltd.
AnjiLogistic Group Co., Ltd. refers to SichuanAnji Logistic Group Co., Ltd.
SacredMountain Molin Company refers to Sacred Mountain Molin Group Co., Ltd.,
Sichuan
HaidaGroup Company refers to Sichuan Haida Rubber Group Co., Ltd.
FinanceCompany refers to SichuanYibinWuliangyeGroupFinanceCo.,
Ltd.
I&E Company refers to YibinWuliangyeGroup I&E Co., Ltd.
WuliangNongxiang Company refers to Wuliang NongXiang Series Baijiu Yibin
Co.,Ltd.
CreartCompany refers to YibinWuliangyeCreart Co., Ltd.
EnvironmentalProtection Company refers to Sichuan Yibin Wuliangye Environmental
Protection Co., Ltd.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section II Company Profile and Main Financial Highlights
I. Company information
Stockabbreviation Wuliangye Stockcode 000858
Stock exchangeforlisting ShenzhenStockExchange
Companyname in Chinese 宜宾五粮液股份有限公司
Companyshortnamein 五粮液
Chinese
CompanynameinEnglish WULIANGYEYIBINCO.,LTD.
(ifany)
Companyshortnamein WLY
English(ifany)
Legalrepresentativeofthe ZengCongqin
Company
Registered address No.150,MinjiangWestRoad,CuipingDistrict,Yibin,Sichuan
Zip codeoftheregistered 644007
address
Office address No.150,MinjiangWestRoad,CuipingDistrict,Yibin,Sichuan
Zipcodeoftheoffice 644007
address
Website http://www.wuliangye.com.cn
E-mail 000858-wly@sohu.com
II. Contact person and contact information
Secretaryoftheboardofdirectors Representativeforsecuritiesaffairs
Name PengZhifu XiaoXiangfa,LiXinyi
Address No.150,MinjiangWestRoad,Cuiping No.150,MinjiangWestRoad,Cuiping
District, Yibin,Sichuan District,Yibin,Sichuan
Tel (0831)3567000,3566938,3567988 (0831)3567000,3566938,3567988
Fax (0831)3555958 (0831)3555958
E-mail 000858-wly@sohu.com 000858-wly@sohu.com
III. Information disclosure and preparation place
NameofmediaselectedbytheCompanyfor ChinaSecuritiesJournal,ShanghaiSecuritiesNews,Securities
information disclosure Times
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
WebsitedesignatedbyChinaSecurities http://www.cninfo.com.cn
RegulatoryCommissionfortheAnnualReport
Preparation placeoftheCompany'sAnnual Boardoffice
Report
IV. Registration changes
Organizationcode 91511500MA62A0WM8P
Changes inprimarybusinesssincethe Nochangeduringthereportingperiod
Company'slisting(ifany)
Previouschangesofcontrolling Nochangeduringthereportingperiod
shareholders(ifany)
V. Other relevant information
Accounting firm engaged by the Company
Name ofaccountingfirm SichuanHuaxin(Group)CPA(LLP)
Officeaddressoftheaccountingfirm 28/F,SouthJinmaolidu,No.18,XimianqiaoStreet,Chengdu,Sichuan
Name ofsignatoryaccountant LiMin,LiuJun
The sponsor institution engaged by the Company to perform the continuous supervisionresponsibility during the reporting period
√ Applicable □ Not applicable
Nameofsponsorinstitution Officeaddressof Nameofsponsor Continuoussupervisionperiod
sponsorinstitution representative
No.618, Shangcheng TengQiang,Liu
GuotaiJunanSecuritiesCo.,Ltd. Road,China(Shanghai) Qiqun April20,2018-December31,2019
Pilot FreeTradeZone
Financial consultant engaged by the Company to perform the continuous supervision responsibilityduring the reporting period
□ Applicable √ Not applicableVI. Main accounting data and financial highlights
Whether the Company needs to retroactively adjust or restate the accounting data of the previousyears
□ Yes √ No
Increase/decrease
Year2019 Year2018 comparedwiththe Year2017
previousyear
Operatingrevenue(RMB) 50,118,105,877.14 40,030,189,599.87 25.20% 30,186,780,409.14
Net profitattributableto
shareholders ofthelistedcompany 17,402,164,190.16 13,384,246,683.60 30.02% 9,673,721,498.15
(RMB)
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Net profitattributableto
shareholders ofthelistedcompany 17,405,930,787.45 13,398,843,689.90 29.91% 9,642,325,077.81
after deductingnon-recurringgains
and losses(RMB)
Net cashflowsfromoperating 23,112,072,040.66 12,317,359,034.90 87.64% 9,766,175,822.66
activities (RMB)
Basicearningspershare 4.483 3.474 29.04% 2.548
(RMB/share)
Diluted earningspershare 4.483 3.474 29.04% 2.548
(RMB/share)
Weighted averagereturnonequity 25.26% 22.80% Increasingby2.46% 19.38%
Increase/decrease
attheendofthe
End ofYear2019 EndofYear2018 currentyear EndofYear2017
comparedwiththe
endoftheprevious
year
Totalassets(RMB) 106,396,972,333.66 86,094,265,733.09 23.58% 70,922,626,679.43
Netassetsattributableto
shareholders ofthelistedcompany 74,290,700,662.22 63,487,270,080.56 17.02% 53,334,081,189.48
(RMB)
VCIhI.ineseDAiffcecroeunncetisnginSatacncdoaurndtsing data under the Foreign Accounting Standards and
1. Differences between the net profits and net assets in financial report disclosed under the
International Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the InternationalAccounting Standards and Chinese Accounting Standards.
2. Differences between the net profits and net assets in financial report disclosed under the
Foreign Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the ForeignAccounting Standards and Chinese Accounting Standards.
3. Reasons for differences in accounting data under the Foreign Accounting Standards and
Chinese Accounting Standards
□ Applicable √ Not applicableVIII. Quarterly key financial highlights
Unit: RMB
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
1stQuarter 2ndQuarter 3rdQuarter 4thQuarter
Operating revenue 17,590,253,203.22 9,560,791,649.53 9,950,587,240.24 13,016,473,784.15
Net profitattributableto
shareholdersofthelisted 6,475,113,303.33 2,860,524,075.93 3,207,909,936.35 4,858,616,874.55
company
Net profitattributableto
shareholdersofthelisted 6,540,037,045.57 2,854,311,216.69 3,212,022,218.38 4,799,560,306.81
companyafterdeducting
non-recurringgainsandlosses
Net cashflowsfromoperating 7,926,569,918.50 439,242,710.54 7,825,510,025.56 6,920,749,386.06
activities
Whether there are significant differences between the above-mentioned financial index or the totalnumber and the relevant financial index disclosed in the Company’s quarterly report and semi-annualreport
□ Yes √ NoIX. Items and amounts of non-recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB
Item AmountofYear AmountofYear AmountofYear Comments
2019 2018 2017
Gain orlossondisposalofnon-currentassets
(including thewrite-offpartoftheprovisionfor -1,571,612.06 3,428,495.17 3,657,328.20
impairment ofassets)
Governmental subsidyrecordedincurrent
profit/loss (exceptthosegovernmentsubsidies,
which arecloselyrelatedtothebusinessofa 129,760,347.41 88,840,102.95 35,909,406.36
company andenjoyedinaccordancewithacertain
standard quotaorquantityofthestate)
Fund occupationfeecollectedfromnon-financial 15,503,633.45 10,373,763.35 4,241,705.60
enterprises andrecordedincurrentprofit/loss
Other non-operatingrevenueandexpenditure -135,436,782.11 -110,025,211.13 1,308,010.82
except fortheaforementioneditems
Less: Impactonincometax -4,831,273.10 -8,928,533.56 9,653,995.55
Impact onminorityequity(after-tax) 16,853,457.08 16,142,690.20 4,066,035.09
Total -3,766,597.29 -14,597,006.30 31,396,420.34 --
Concerning the non-recurring profit/loss defined by Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and theitems defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Non-recurring Profit/Loss, explain reasons.
□ Applicable √ Not applicable
The Company had no item to be defined as recurring profit/loss in accordance with thenon-recurring profit/loss defined and listed by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public - Non-recurring Profit/Loss.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section III Summary of Company Business
I. Primary business of the Company in the reporting period
The Company is mainly engaged in liquor production and sales. According to the Guidelines for theIndustry Classification of Listed Companies (2012 Revision) issued by China Securities RegulatoryCommission, liquor industry belongs to "liquor, beverage, and refined tea manufacturing industry" (C15).The primary business of the Company had no change during the reporting period. "Wuliangye" liquor,main product of the Company, is a typical strong aromatic Chinese spirit of China. The Company alsodevelops series liquor products with complete categories and distinctive nuance, including WuliangChun (Spring), Wuliang Chun, Wuliang Te Qu and Tou Qu, Mian Rou Jian Zhuang, to meet thediversified demands of consumers of different levels.
In 2019, with the increasing downward pressure of macroeconomy at home and abroad, the growthrate of the liquor industry slowed down, the competition became more intensive, the concentration ratioof the industry further increased, and the competitive advantages of famous liquor enterprises werehighlighted. During the reporting period, the Company seized the new development opportunities andincreased the brand value significantly through the marketing organization reform, product iteration andupgrading, digital transformation, and other reform measures, further consolidating its leading position inthe strong aromatic Chinese spirits market.
II. Major changes in main assets
1. Major changes in main assets
□ Applicable √ Not applicable2. Main overseas assets
□ Applicable √ Not applicableIII. Analysis of core competitiveness
Does the Company need to comply with the disclosure requirements for special industry?
No
The Company has six unique advantages, and these constitute the traditionalcore-competitiveness of Wuliangye. 1) Wuliangye’s natural, ecological environment makes it unique;2) The unique 600-years microbiota of its ancient caves has been growing continuously since the MingDynasty to the present day; 3) The high-quality, world-famous Wuliangye is brewed with five uniquegrain formulas; 4) It uses unique brewing technologies and has a unique microbial zone within theWuliangye Ten-Mile Liquor City; 5) The unique, harmonious quality of Wuliangye makes it a typical
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
representative of Chinese culture; 6) The scale of the unique “Ten-Mile Liquor City” enables Wuliangye’s
brand value to rank the top in the liquor industry.
In 2019, the Company took various simultaneous measures to actively promoteorganizational reform, strengthen digital transformation, optimize product systems, andconstruct a quality, product lifecycle management system. In doing so, it improved its marketingcapability, its brand-equity, and it strengthened core competitiveness.
The Company first focused on building a new factory-trader relationship. It strengthened marketreform and digital transformation, and then made further improvements to its marketing and servicecontrol. The marketing organization became more professional and streamlined, which in turn helpedimproving the capabilities of the marketing team. The Company has been speeding up its digitaltransformation, and was honored as a "Model of Experiential Marketing", which could be deemed as themarket’s affirmation of Wuliangye’s efforts in digital transformation.
The Company then focused on creating a better life for consumers. It has been enhancing itstechnology innovation, traceability management and process control, improving its ability to strictlycontrol product quality and supply capability. The Company constructed a number of high-level researchplatforms to continuously improve technological innovation. The Company enhanced its grain supply bystrengthening production base construction, and vigorously promoted a product traceabilitymanagement system centered on the supply of special grains. It founded the “Specialist Brewing GrainTechnological Research Center” in Sichuan. This was the first domestic research platform aboveprovincial level in this field and academician Yuan Longping was invited to serve as a consultant at thecenter. The center aims to strengthen research and joint efforts in breeding and improving specialbrewing grains. The Company strengthened its process controls through internal system construction,promoted the efficiency of a total quality management system, and increased the yield of high-qualityliquor continuously.
Finally, the Company focused on implementing the “three characteristics and one recognition”requirements to improve product mix and promote brand culture. During the reporting period, Wuliangyecontinuously optimized its product mix, continuously reshaped the liquor brand matrix series, and set upthe Wuliangye Culture Research Institute. It continuously promoted brand culture, coordinated traditionaland new media advertisement, strengthened communication through key projects and major events, andactively promoted the Company internationally. All these activities strengthened Wuliangye’s brandreputation, lifting the brand value and influence continuously.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section IV Discussion and Analysis of Operation
I. Overview
In 2019, the global economy was full of uncertainties. The Sino-US trade war was at deadlock, theexchange rate was changing frequently, the environment for domestic and international trade wascomplex and grim - as was the macroeconomic situation, and the overall market was full of challenges.However, two things remained unchanged. There was an overall trend of transforming and upgradingdomestic consumption, and a more specific trend to concentrate on famous and high-quality liquorenterprises in the liquor industry. During the reporting period, the Company kept up with new trends inthe market, seized new development opportunities, set new requirements for high-quality development,focused on strengthening its weak points, gave play to strong points, and reached a new momentum byupgrading. It pushed forward the “second entrepreneurship” ideology, and achieved record-highbusiness performance, reaching annual sales over RMB ten billion for three consecutive years. In 2019,the Company's operating revenue increased 25.20% year-on-year, reaching RMB 50.118 billion. The netprofit attributable to shareholders of the listed company reached RMB 17.402 billion, with 30.02%year-on-year growth.
In 2019, the Company adjusted its strategy and optimized measures to deepen structural reform atthe supply-side. It improved its shortcomings, strengthened its advantages, and made significantimprovements to its brand image, product quality and marketing capability.
1. Focus on optimizing product mix and promoting the brand culture; brand influenceexpanded significantly.
1) The Company optimized the Wuliangye product system in order to provide top-quality, aromaticspirits. During the reporting period, the Company successfully launched the eighth-generation version ofthe classic Wuliangye, which is warmly welcomed by the market, and its market price rose steadily toover RMB 1,000 per bottle. The product focused on meeting consumers’ demand for a better life, andtook advantages of its centuries-old (dated back to Ming and Qing dynasty) cellars. The Companydesignated workshops, cellars and craftsmen to strategically create a luxury 501 model of the classicWuliangye. In accordance with the Company’s global strategy, it signed strategic cooperationagreements with Pernod Ricard and other internationally-renowned wine enterprises to initiate R&D foran international Wuliangye product.
2) The Company set up a system for its series liquor products and continued remodeling its brand
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
matrix. The Company continued to downsize high-imitation products that had seriously undermined the
brand value of Wuliangye. Instead it focused on building four nationwide products: Wuliang Chun
(Spring), Wuliang Chun, Wuliang Te Qu, and Jian Zhuang. It adhered to the principle of “focusing on
medium and high-end products, on self-owned brand, and on its core brand”, to ensure its brands with
diversified images, distinctive values and recognizable price bracket.
3) The Company increasingly promoted brand awareness to show the new image of Wuliangyeliquor. Sticking to the brand positioning of “Strong Aromatic Spirits of Great Power, Liquor Magnate ofChina” and digging deeply the brand connotation of “Essence of Nature, National Spirit, WonderfulWorld”, the Company highlighted advantages of the cellars of Wuliangye, technological advantages,formula advantages and other core elements, and told the Wuliangye story. The Company effectivelycombined traditional and new media to coordinate advertising, strengthened brand promotion through aseries of key projects and major events, and further enhanced its international reputation and brandinfluence by participating in the China International Import Expo and other international events. Duringthe reporting period, the Company was successfully recognized by the UN as a symbolically Chinesebrand. Wuliangye ranked 302nd in the World Brand Lab’s 500 Most Influential Worldwide Brands, rising24 places from the previous year. It also ranked 40th in Asia's 500 Most Influential Brands, rising eightplaces from the previous year. It ranked 19th in China’s 500 Most Valuable Brands, rising one place fromthe previous year.
2. Focus on platform construction, traceability management and process controls; productquality improved significantly.
1) The Company promoted the construction of a technological platform to strengthen innovation.The Company insisted on combining tradition with innovation, and, in order to improve Wuliangye’squality, it vigorously promoted the construction of a of a science and technology innovation platform toincrease R&D on brewing ecology and technology, and on liquor flavors. During the reporting period, theCompany newly established a range of top research platforms to ensure improvements in liquor quality,including the Sichuan Brewery Special Grain Engineering Research Center and the Provincial SichuanSolid Fermentation Liquor Brewing Engineering Research Center.
2) The Company upgraded its grain production base to guarantee a better grain supply. TheCompany sped up the upgrade and construction of a special brewing grain production base. It vigorouslypromoted the construction of a traceability management system for its products, centered on specialgrain supplies. It built a "from seed to liquor" product lifecycle quality system, allowing it to pre-inspect,
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
trace, and control grain supply and ensure the quality and stability.
3) The Company built a quality management system and strengthened its process control. TheCompany promoted the efficient operations of its total quality management system to establish anall-round production monitoring and ensure a steady growth of its first-class liquor output.
3. Focus on market reform, digital transformations, and marketing team construction;marketing capabilities improved significantly.
1) The Company reformed its marketing department to improve its market responsiveness. Duringthe reporting period, the Company completely the transformation from traditional marketing to modernmarketing, realizing the "specializations horizontally and flat management vertically". Wuliangye’sheadquarters reformed its Brand Department, and each region reformed by carrying out flatmanagement and decentralizations. The regions were divided into 21 marketing areas and 60 marketingbases, significantly improving their capabilities to explore the market. Series liquor companies, includingthe original Series Liquor, Te Qu and Tou Qu, and Wuliang Chun, were restructured and integrated intothe newly established Wuliang Nongxiang Company, allowing a more collaborative management, moreconcentrated resources, and more rapid market responses.
2) The Company promoted marketing digitalization and strengthened its marketing efforts. TheCompany successively signed strategic cooperation agreements with Alibaba, Huawei and a number ofother companies. It made full use of the advantages of each party to transform itself into a digitallymarketing enterprise. The Company established a digital marketing system, and successfully introducedmodes for trading controls and profit divisions. It mastered the purchase, sale/deals of stock in real-timeby adopting a layer-by-layer binding and code-scanning system, allowing it to monitor channel salestransparently, to monitor channel abnormalities in real-time, and to establish a highly coordinatedchannel system. The Company established a preliminary closed-loop management system fordigitalization between headquarters and regional divisions, and it systematically improved thecoordination and execution of its marketing efforts.
3) The Company expanded its marketing team, optimized their structures, and enhanced teammembers’ capabilities. The Company supplemented 452 salesmen and 500 visiting salesmen by openlyrecruiting and selecting individuals on a level-by-level basis. The series liquor companies alsointroduced 181 salesmen, and the staff structure were optimized in terms of ages, professional ability,and work experience. The marketing team’s ability in understanding the market, getting closer toconsumers, and serving dealers has been significantly improved.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
4. Focus on developing key projects, such as expanding production, storage, and thepackaging capacity; open doors for future development opportunities.
During the reporting period, the Company actively promoted key projects that brought benefits andlaid a foundation for future opportunities. 300-thousand-ton pottery jar aging spirit room (phase I), andrenovation of Workshop 503 have been completed; the liquor packaging and integrated smartstorage-and-delivery project, the technological innovation project for storing blended liquor, and thesupporting infrastructure project at Hongba New Park have been commenced; preparations have beenmade for a special processing tank for making liquor grains, and a project is underway for an automaticgrinding machine; the Company has carried out construction at the ecological park and at the 5A scenicarea.
5. Focus on ensuring safe production, saving energy and protecting the environment,providing assurances that development is of the highest quality.
During the reporting period, the Company’s production sector had no safety incidents, or incidentsthat caused serious injury or death. For 35 consecutive years, it has had no fire accidents. The Companyactively promoted key environmental protection projects including a centralized sewage treatmentsystem and a comprehensive treatment program for the Songgong River. It completed pipe networkreconstruction project of Jiangbei Park, Phase III of energy saving and emission reduction from coal togas project; The Company discharged 100% of its “three wastes” according to the most recent standards,and experienced no minor/major environmental pollution accidents throughout the year. The Companywas honored for three consecutive years as a “Sichuan Environmental Integrity Enterprise”, honored asone of the first “Sichuan Comprehensive Industrial Resources Enterprises”, and won the brand award asa “Sichuan Energy Conservation and Environmental Protection Model”.
6. Focus on corporate governance and strengthening information disclosure; significantlyoptimized the Company’s image in the capital market.
During the reporting period, the Company had standardized its methods of information disclosureaccording to relevant laws, continued to optimize investor relations management mechanism, andfurther expanded the scope and come up with innovative ways for communicating with investors. Thesemeasures were met with unanimous approval from the regulatory authorities and investors. For fiveconsecutive years, the Company was graded Level A (the highest level) in its information disclosureassessment by the Shenzhen Stock Exchange. It won multiple awards, including the “Best Round TableBoard” for its Directors & Boardroom Staff, the “Best Board Prize” at the National Business Daily’s 2019
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Listed Chinese Companies Awards, and CNR’s Most Trustworthy Listed Company to Investors in 2018.
It was also listed as a top enterprise on the “2018 Enterprises for Annual Activities” list, on p5w.net’s
“Listed Enterprises for IR interactions”, and Xueqiu.com’s “Best Listed Company for Investor Relations”.
II. Analysis of primary business
1. Overview
See "I. Overview" in "Discussion and analysis of operation".2. Revenue and cost
(1) Operating revenue composition
Unit: RMB
Year 2019 Year2018 Year-on-year
Amount Proportionin Amount Proportionin increase/decrease
operatingrevenue operatingrevenue
Total operating 50,118,105,877.14 100% 40,030,189,599.87 100% 25.20%
revenue
By industry
Manufacturing 50,118,105,877.14 100% 40,030,189,599.87 100% 25.20%
industry
By product
Liquors 46,301,838,985.74 92.39% 37,751,933,113.60 94.31% 22.65%
Including: 39,670,724,562.67 79.15% 30,189,147,385.40 75.42% 31.41%
High-endliquor
Middle-and 6,631,114,423.07 13.23% 7,562,785,728.20 18.89% -12.32%
low-end liquor
Plastic products 2,540,536,361.21 5.07% 1,851,618,283.27 4.63% 37.21%
Printing 124,811,258.13 0.25% 54,501,116.15 0.14% 129.01%
Glassbottle 194,271,586.53 0.39% 97,655,529.08 0.24% 98.94%
Others 956,647,685.53 1.91% 274,481,557.77 0.68% 248.53%
By region
Domestic 50,118,105,877.14 100% 40,030,189,599.87 100% 25.20%
Remarks:
1. High-end liquor: refers to main products with selling price (tax inclusive) of RMB 120 and aboveamong the alcohol products (500ml/bottle) of the Company;
2. The Company did not export alcoholic products directly, but sold them to the I&E Company forexport.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Industries, products or regions that account for more than 10% of the Company's operating
revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Year-on-year Year-on-year Year-on-year
Operating revenue Operatingcost Grossprofit increase/decrease increase/decrease increase/decrease
in operating inoperatingcost ingrossprofit
revenue
Byindustry
Manufacturing
industry (liquor 46,301,838,985.74 9,284,024,693.66 79.95% 22.65% 9.73% 2.36%
and spirits)
Byproduct
Liquors 46,301,838,985.74 9,284,024,693.66 79.95% 22.65% 9.73% 2.36%
Including: 39,670,724,562.67 6,113,455,671.70 84.59% 31.41% 29.05% 0.28%
High-end liquor
Middle-and 6,631,114,423.07 3,170,569,021.96 52.19% -12.32% -14.84% 1.42%
low-end liquor
By region
Domestic (liquor 46,301,838,985.74 9,284,024,693.66 79.95% 22.65% 9.73% 2.36%
and spirits)
In the case that the statistical standards for primary business data of the Company are adjustedduring the reporting period, the primary business data of the Company in recent 1 year are subject tothose after the adjustment of the statistical standards at the end of the reporting period
□ Applicable √ Not applicable(3) Whether the Company's revenue from physical sales is greater than income from labors
√ Yes □ No
Industry Item Unit Year2019 Year2018 Year-on-year
classification increase/decrease
Salesvolume Ton 165,411 191,596 -13.67%
Liquors Production Ton 168,272 191,968 -12.34%
Inventory Ton 15,831 12,970 22.06%
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Remarks: The above items are the sales volume, production and inventory of commodity liquor.
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable(4) Performance of major sales contracts signed by the Company up to the reporting period
□ Applicable √ Not applicable(5) Operating cost composition
Unit: RMB
Industry Year2019 Year2018 Year-on-year
classification Item Amount oPpreorpaotirntigoncoinstAmount oPpreorpaotirntigoncoinstIdneccrreeaassee/
Raw materials 6,409,107,723.74 50.06% 5,376,901,123.42 51.27% -1.21%
Manufacturing Salary 4,228,023,628.65 33.03% 3,144,553,451.80 29.99% 3.04%
industry Energy 957,955,244.56 7.48% 825,023,634.74 7.87% -0.39%
Manufacturing 1,207,173,350.39 9.43% 1,140,304,724.31 10.87% -1.44%
expenses
(6) Whether the consolidation scope changes in the reporting period
√ Yes □ No
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the 5thboard of directors of the Company, jointly funded and established "Wuliang NongXiang Series BaijiuYibin Co., Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95million, taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5%of the registered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. was included in theconsolidation scope of the Company since its establishment.
(7) Major changes or adjustments of business, products or services of the Company during the
reporting period
□ Applicable √ Not applicable(8) Major sales customers and major suppliers
Major sales customers of the CompanyTotal sales amount of top five customers (RMB) 6,656,074,707.73
Proportion oftotalannualsalesoftopfivecustomersin
total annualsales 13.28%
Proportion ofrelatedpartiesintotalannualsalesamong
the topfivecustomers
Top 5 customers of the Company
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
No. Customername Salesamount(RMB) Proportionintotalannualsales
1 No.1 2,655,336,333.53 5.30%
2 No.2 1,454,245,831.36 2.90%
3 No.3 1,068,964,918.81 2.13%
4 No.4 768,878,910.41 1.53%
5 No.5 708,648,713.62 1.41%
Total -- 6,656,074,707.73 13.28%
Other information of major customers
□ Applicable √ Not applicable
Major suppliers of the CompanyTotal purchase amount from top five suppliers (RMB) 2,024,585,007.42
Proportion intotalannualpurchaseamountfortopfive 21.17%
suppliers
Proportion ofthepurchasefromrelatedpartiesintotalannual 3.16%
purchase amountamongthetopfivecustomers
Top 5 suppliers of the Company
No. Suppliername Purchaseamount(RMB) Proportionintotalannualpurchase
amount
1 No.1 501,920,162.34 5.25%
2 No.2 423,809,746.69 4.43%
3 No.3 412,501,721.08 4.31%
4 No.4 384,370,000.10 4.02%
5 No.5 301,983,377.21 3.16%
Total -- 2,024,585,007.42 21.17%
Other information of major suppliers
□ Applicable √ Not applicable3. Expenses
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Unit: RMB
Year-on-year
Year2019 Year2018 increase/ Noteonmajorchanges
decrease
Caused byincreaseofproductpropagandaand
marketing expensesduetomarketing
Selling expenses 4,985,579,336.77 3,778,433,675.01 31.95% organizationreform,marketingsystem
transformation andupgrading,coreproduct
upgrading andupdating
Administrative 2,655,347,148.09 2,340,498,705.44 13.45%
expenses
Financial Not Causedbycombinedinfluenceoftheincreaseof
expenses -1,430,745,865.74 -1,085,010,763.65 applicable averagestockofcashandcashequivalentsand
the risingoffundsmanagementbenefits
Research and Causedbyincreaseofresearchand
development 126,360,421.11 84,082,506.26 50.28% developmentinvestmentbytheCompany
expense accordingtothemarketdemands
4. Research and development investment
√ Applicable □ Not applicable
1. Purpose of the R&D project
In 2019, the Company continued its R&D work. It researched the application of solid, fermentedmicroorganisms to Chinese spirits, carried out risk assessment into liquor as a consumable, andresearched the application of intelligent brewing technologies. It also researched the technologies forliquor analysis, brewing technologies and developing new products. It did this to provide support at thesupply side.
2. Progress, planned objective, and impact on future development of the Company
There are 43 independent R&D projects, including "Researching the Substances for Ensuring theCharacteristic Flavor of Strong, Aromatic Chinese Spirits", "Researching the Special Brewing Grains forWuliangye", "Developing Functional Microbial Technologies to Improve the Quality of Strong, AromaticChinese Spirits", "Researching the Technologies to Adjust/Control the Acid Formation on Distilled Grainsin the Wuliangye Cellars", and "Developing an Intelligent Brewing Production Line and ResearchingSupporting Technologies". All of these projects have been carried out on schedule. The Alcoholic DrinksAssociation awarded the Company third prize for “Progress in Chinese Science”. It made two majortechnological breakthroughs, and was granted RMB 2.6 million by the government for special funding. Itobtained patents for five new inventions, and has published 21 science and technology articles.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The Company plans to collect the resources for solid fermentation that can be applied to strong,aromatic Chinese spirits. It has assessed the existing resources and how they are utilized, so that it canimprove the rate of producing quality products, ensure food safety, and consolidate the Company'sposition as a leader in strong aromatic Chinese spirits.
Research and development investment of the Company:
Year2019 Year2018 Proportionofchange
Numberofresearchand 2,719 2,680 1.46%
developmentpersonnel(person)
Proportionofresearchand 10.32% 10.19% 0.13%
developmentpersonnel
Researchanddevelopment 126,360,421.11 84,082,506.26 50.28%
investment(RMB)
Proportionofresearchand
developmentinvestmentin 0.25% 0.21% 0.04%
operatingrevenue
Capitalizedamountofresearchand 0.00 0.00 0.00%
development investment(RMB)
Proportion ofcapitalizedresearch
and developmentinvestmentin 0.00% 0.00% 0.00%
researchanddevelopment
investment
Reasons for significant changes in the proportion of total research and development investmentamount in operating revenue compared with the previous year
□ Applicable √ Not applicable
Reasons for the significant changes of research and development investment capitalization rate anddescription of its rationality
□ Applicable √ Not applicable5. Cash flow
Unit: RMB
Item Year2019 Year2018 Year-on-year
increase/decrease
Sub-total ofcashinflowsfrom 64,604,503,080.77 47,286,315,224.60 36.62%(Note1)
operating activities
Sub-totalofcashoutflowsfrom 41,492,431,040.11 34,968,956,189.70 18.66%
operating activities
Net cashflowsfromoperating 23,112,072,040.66 12,317,359,034.90 87.64%(Note1)
activities
Sub-total ofcashinflowsfrom 92,050,811.98 49,824,966.23 84.75%
investingactivities
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sub-totalofcashoutflowsfrom 1,708,455,125.66 381,381,461.74 347.96%(Note2)
investingactivities
Netcashflowsfrominvesting -1,616,404,313.68 -331,556,495.51 Notapplicable(Note2)
activities
Sub-total ofcashinflowsfrom 1,813,717,926.36 -100.00%(Note3)
financingactivities
Sub-totalofcashoutflowsfrom 7,251,646,962.56 5,431,641,453.13 33.51%(Note4)
financingactivities
Netcashflowsfromfinancing -7,251,646,962.56 -3,617,923,526.77 Notapplicable(Note5)
activities
Net increaseincashandcash 14,244,084,425.84 8,368,245,492.17 70.22%(Note6)
equivalents
Description of main influencing factors of significant changes in relevant data on a year-on-yearbasis
√ Applicable □ Not applicable
Note 1: Due to the increase in income from liquor products in current year, increase of cash receivedfrom maturity of bank acceptance bill, early payment by dealers during the Spring Festival, and other
factors;
Note 2: Due to the increase in cash payments to acquire and construct fixed assets in current year;
Note 3: Due to funds raised by non-public offering of shares in 2018;
Note 4: Due to the dividend distribution in 2019 was higher than that of the same period in 2018;
Note 5: Due to the combined influence of the dividend distribution in 2019 being higher than that ofthe same period in 2018 and the funds received from non-public offering of shares in 2018;
Note 6: Due to the increase in net cash flows from operating activities in current year.
Reasons for significant difference between the net cash flows from operating activities of theCompany and the net profit of the current year during the reporting period
□ Applicable √ Not applicableIII. Analysis of non-primary business
□ Applicable √ Not applicableIV. Analysis of assets and liabilities1. Significant changes in asset composition
Adjustment of relevant items in financial statements at the beginning of the implementation year asa result of initial implementation of new financial instrument standards, new income standards and newlease standards by the Company from 2019
√ Applicable □ Not applicable
Unit: RMB
EndofYear2019 BeginningofYear2019 Increase/
Proportion in Proportion decreasein Noteonmajor
Amount totalassets Amount intotal proportion changes
assets
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Cash andcash 63,238,825,723.79 59.44% 48,960,048,897.95 56.87% 2.57%
equivalents
Accounts 134,449,693.03 0.13% 127,331,336.97 0.15% -0.02%
receivable
Inventory 13,679,619,615.41 12.86% 11,795,461,088.43 13.70% -0.84%
Long-term
equity 1,021,778,731.59 0.96% 919,477,978.54 1.07% -0.11%
investment
Fixed assets 6,108,745,912.72 5.74% 5,262,163,428.02 6.11% -0.37%
Construction in 812,428,248.30 0.76% 351,993,452.86 0.41% 0.35%
progress
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
loPsrsoffirtoomrAccumulated
Item Beginningamount chinanfagiers chanvgaelsueinfair IpmropvaiidremdeinntaPmurocuhnatsienoAfmsoaulenst
current current in Otherchanges Endingamountvaluein reckonedinto
cpuerrrieondtequities period period cpuerrrieondt
aFsinsaentscial
1fin.aTnracdiainlg
(aesxscelutsding
dfinearinvcaitaivle
assets)
f2in.aDnecriiavaltive
assets
3in.vOesthtmerednetsbt
e4.qOuitthyer
iinnvstersutmmeenntt
r5e.cAecivcaobulnets2,269,711,750.31 1,180,454,908.75 3,450,166,659.06
financing
fSinuabn-tcoiatallof 2,269,711,750.31 1,180,454,908.75 3,450,166,659.06
assets
Ipnrvoepsetrmtieesnt
Pbirooldougcictaivle
assets
Others
Sabuomveofittehmes2,269,711,750.31 1,180,454,908.75 3,450,166,659.06
lFiainbailnitcieiasl
Is there any significant change in measurement attributes of main assets of the Company in the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
reporting period?
□ Yes √ No3. Limitation on the assets and rights as of the end of the reporting period
√ Applicable □ Not applicable
Unit: RMB
Item Endingbookvalue Reasonsforlimitation
Cash andcash 99,996,480.91Deposit of bank acceptance bill of RMB 99,754,080.91 and other
equivalents depositsofRMB242,400.00.
Accountsreceivable 144,514,604.00Pledge ofbankacceptancebill
financing
Total 244,511,084.91
V. Analysis of investment
1. General situation
□ Applicable √ Not applicable2. The significant equity investment obtained during the reporting period
□ Applicable √ Not applicablep3.eriTohde significant non-equity investment being carried out during the reporting
□ Applicable √ Not applicable4. Financial assets investment(1) Note on investment situation
□ Applicable √ Not applicable
The Company had no securities investment during the reporting period.(2) Note on derivative investment
□ Applicable √ Not applicable
The Company had no derivative investment during the reporting period.5. Use of funds raised
√ Applicable □ Not applicable(1) Overall Use of funds raised
√ Applicable □ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Unit: RMB ’0,000
Total
funds
raisedof Total Proportion Funds
Fundsraised wthhiechrafiusneddsofofthetotal Purposeand rwahisicehd
Raising Raising Fundsraised usedin Totalfunds purpose which funds Totalfunds allocationof has
Year Means Total cpuerrrieondtraisedused has the wrahiiscehdthoefrahisaevdewnhoitchfundsraised idbleeefnor
Total been purpose whichhavenotpurposebeenused more
Total chdaunrignegdbheaesnhasbeen beenused tthwaon
the changed changed years
reporting
period
In additionto
fixed depositor
call deposit,the
funds raised
which havenot
Non-public Cbeoemnpuasneydbythe
2Y0e1a8rofferingof 185,327.74 12,872.58 15,605.81 169,721.93 remainedonthe
shares fsoprefcuinadlsacrcaoisuendt
and wouldbe
used forthe
investment
projects ofthe
funds raised.
Total -- 185,327.74 12,872.58 15,605.81 169,721.93 --
Descriptionofoveralluseoffundsraised
millioDnufroinrgthtehemraerpkoerttininggcpeenrtieord,cothnestCruocmtipoannpyroajcetcuta;lalyndpaRidMRBM6B2.4301.53449m7illmioinlliofonrftohrethseerivnicfoer-moraietinotnedcoEn-sctorumcmtioenrcperopjleactfto;rRmMpBro3j5e.c9t.607
Remark: The Company raised RMB 1.8532774 billion in total through this fund raising, and actuallyraised RMB 1.8127379 billion after deducting the issuing and undertaking expenses of RMB 40.5395million.
(2) Projects promised to be invested with funds raised
√ Applicable □ Not applicable
Unit: RMB ’0,000
CinovemsmtmitetendtWprhoebjetehceetnrhtahseamTooutnatlof inveTsottmalentInvestment Accumulated pInrovgersetmsseanstwDhaictehothne Income Isthereany
parlloojceacttisonanodfchanged icnovmesmtmitteendtamafoteurntreipnotrhtienginovfethsetmeenndtoafsofothfetheendreapcrhoejesctthereinaltihzeedreWexaphceehcthttehederscihgannifgiceanint
ovefur-nradissed(icnphcaalurntdigaienl)g oftrhaeisfeudndsadju(s1tm)ent period theperiod(2) per(i2o)d/((13))＝euxpseacbtleedreppeorriotidngincome ftehaesipbriolitjeycotf
condition
Committed investmentprojects
IcnofnosrmtruactitoionnNo 71,530 71,530 3,034.97 5,420.21 7.58%
Cmoanrksetrtuincgtionof No 50,793 50,793 3,596.07 3,944.06 7.76%
center
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Soreiervnitceed-
pEl-actofomrmmerce No 63,074 63,074 6,241.54 6,241.54 9.90%
cSoumb-mtoitttaeldof
ipnrvoejesctmtsent -- 185,397 185,397 12,872.58 15,605.81 -- -- -- --
Allocation ofover-raisedfunds
Total -- 185,397 185,397 12,872.58 15,605.81 -- -- -- --
rNeoatseoonnfoarnndot
srecahcehdiunlgedthe
eprxopgercetsesdorThedigitaltransformationoftheCompanyiscontinuing,andspecificprojectsneedtobeimplementedstagebystage.
ionncosmpeec(ifbicased
projects)
Daneyscsrigipntiioficnaonft
cfehaasnibgielitiynofthe Notapplicable
project
pAumrpoousnet,,and
papropglirceastsioonfNotapplicable
ofuvnedr-sraised
iCmhpalnegmeenotfation
pinlvaecsetmofentNotapplicable
pfurnodjescrtsaiwseitdhthe
Amdejaunsstmoefntof
oimfpinlevemsetmnteantiotn Notapplicable
pfurnodjescrtsaiwseitdhthe
iEnavrelystmentand
rinevpelasctmemenetntof Notapplicable
pfurnodjescrtsaiwseitdhthe
uNpotweoornkinmgaking
tceampiptaolrarilywith Notapplicable
ridaliesefudnds
cAamuosuenotfand
fbuanladnscreaiosefd Notapplicable
iamftpelrementation
of theproject
aPlulorcpaotsioenaonfd
fwuhnidcshrhaaisveednotCAsomofpDaneyceremmbaeirn3e1d,o2n01th9e,isnpaedcdiaitlioancctooufinxtefdordfeupnodssitraoirsceadlladnedpowsoiut,ldthbeefuunsdesdrfaoirsethdewinhvicehsthmaevnetnporotjbeecetsnoufstehdebfuyntdhseraised.
been used
Potrhoebrlemsor
ainbfoorumtation Refertothespecialreportondepositoffundsraisedandactualuse
dapispclliocsautiroenoafnd
the fundsraised
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(3) Changes of projects with the funds raised
□ Applicable √ Not applicable
The Company had no change of projects with the funds raised during the reporting period.VI. Sales of significant assets and equities
1. Sales of significant assets
□ Applicable √ Not applicable
The Company did not sell significant assets during the reporting period.2. Sales of significant equities
□ Applicable √ Not applicableVII. Analysis of main holding and JV companies
√ Applicable □ Not applicable
Main subsidiaries and JV companies that affect the net profits of the Company by more than 10%
Unit: RMB
Company name Company Primary Registeredcapital Totalassets Netassets
type business
Liquor sales,
YibinWuliangyeLiquorSalesCo., liquorimport
Ltd. Subsidiary andexport 200,000,000.00 43,847,842,961.59 20,836,104,933.89
business and
agency
Company name Company Primary Operatingrevenue Operatingprofit Netprofit
type business
Liquor sales,
YibinWuliangyeLiquorSalesCo., liquorimport
Ltd. Subsidiary andexport 46,559,665,282.40 20,342,581,806.17 15,289,221,216.27
business and
agency
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Means of
acquisition and
Companyname disposalof Impactonoverallproduction,operationandperformance
subsidiariesduring
the reporting
period
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
IntegratetheoriginalYibinWuliangyeSeriesLiquorBrandMarketingCo.,
Wuliang NongXiangSeriesBaijiu Ltd.,andYibinWuliangTequandTouquBrandMarketingCo.,Ltd.to
YibinCo.,Ltd. Establishment optimizeorganizationstructureoftheseriesliquorandfocusoncore
productsoftheseriesliquor,whichwillbenefitoveralllong-term
developmentoftheCompany
VIII. Structured entities controlled by the Company
□ Applicable √ Not applicableIX. Prospect of future development of the Company
(I) Industrial pattern and trend
In 2020, the downward pressure of domestic economy further increases due to the impact ofCOVID-19, but the fundamentals and basic trend of steady long-term economic growth remainunchanged. The production volume, revenue and total profit of the liquor industry maintain the growthtrend, but the production capacity is still in excessive and the competition pattern of extruded growth willexist in long term. The liquor industry is still in the long cycle of a new round of growth characterized bystructural prosperity, in which high-end liquor will continue to lead the structural growth of the industryand the industry will be further concentrated on superior brands, superior enterprises and superiorproducing areas.
(II) Development strategy of the Company
Strategic vision of the Company: The Company is dedicated to keeping it evergreen and strives tobuild a healthy, creative, and leading first-class enterprise in the world and realize high-quality,sustainable, and rapid development.
(III) Completion of the business plan 2019
1. Beginning plan: Operating revenue of RMB 50 billion in 2019, keeping the growth of about 25%.
2. Actual completion: In 2019, the Company's operating revenue reached RMB 50.118 billion, withyear-on-year growth of 25.20%.
(IV) 2020 Business Plan
The year 2020 will be crucial. The Company will continue to reform in line with the final year of the"13th Five-Year Plan". It will also lay the foundation for stepping into a post-hundred billion era,becoming one of the Global 500 companies, and building a first-class, international enterprise. Under XiJinping’s guiding principle of “socialism with Chinese characteristics”, the Company will enter a new eraand fully implement a series of important instructions that were outlined for Sichuan at the 19th NationalCongress of the Communist Party of China. General Secretary Xi insisted on the general principle of
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
seeking progress while keeping performance stable. He called for a new concept of development, and
that organizations continue to "strengthen weak points, give play to strong points, and upgrade with new
momentum". The Company aims to improve in quality and control, to promote new development and to
digitally transform while continuously increasing its revenue.
The Company's business objective for 2020: double-digit growth for the total operating revenue.
To ensure that the Company successfully achieves its business objectives, it is attaching greatimportance to the following tasks: 1) Strengthening the management of production, building a qualitymanagement system for the lifecycle of the product, and ensuring that production improves in qualityand efficiency; 2) Strengthening the brand and inflating the brand value of Wuliangye by continuing toimprove the production system with the four strategic products (Wuliangye "1+3" products and the seriesliquor); 3) Strengthening the marketing system by carrying out strategic planning, creating channels,structurally optimizing the mechanisms of teams, digitalization, and building a responsive marketingsystem; 4) Constructing and promoting key projects that involve liquor packaging, intelligent storage,delivery integration, special grain processes and automated grinding machinery, while carrying outtechnological innovation into how to store blended liquor and increase the Company’s capacity andscale; 5) Vigorously promoting reforms in institutions and compensation systems, motivating theCompany to develop with vitality.
(V) Potential risks
1. The risk of uncertain macroeconomic growth. With the impact of the COVID-19, there has beenan intense, downward trend in the international and domestic economy; the Company will pay closeattention to the domestic macroeconomic situation, strengthen its monitoring and research, and preparea risk response plan.
2. The risk of more intense industrial competition. In recent years, consumption habits havetransformed, and the Company needs to reform accordingly, by strengthening its weaknesses,highlighting its strong points, and finding new driving forces, to improve its core competitiveness.
3. The risk of changes to consumer demands. The Company needs to conduct more marketsurvey and adjust its business strategy, adapting to changes in consumer demands and meeting themore diversified demands of consumers.
X. Reception, research, communication, interview and other activities
1. Registration form of reception, research, communication, interview and other activities
during the reporting period
√ Applicable □ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Date ofreception Wayofreception Typeof Basicinformationindexofthe
interviewees survey
January 11,2019(HongKong) Communication Organization
January 23,2019 Fieldsurvey Organization
February18,2019 Fieldsurvey Organization
May 10,2019 Fieldsurvey Organization,
(AnnualGeneralMeeting2018) individual
May 15,2019 Fieldsurvey Organization
May 20,2019 Telephone Organization
communication
May 23,2019 Fieldsurvey Organization
May 23,2019(Beijing) Communication Organization
May 23-24,2019(Chengdu) Communication Organization
May 31,2019 Fieldsurvey Organization
June 20,2019(Qingdao) Communication Organization
June21,2019(Shanghai) Communication Organization
June26,2019(Shanghai) Communication Organization
July03-05,2019(HongKong) Communication Organization
July05,2019 Fieldsurvey Organization CNINFO
July 12,2019(Shanghai) Communication Organization (http://www.cninfo.com.cn)
July16,2019 Fieldsurvey Organization
July22,2019 Fieldsurvey Organization
July30,2019 Fieldsurvey Organization
September06,2019 Fieldsurvey Organization
September10-12,2019(HongKong) Communication Organization
September 11,2019 Fieldsurvey Organization
September12,2019 Fieldsurvey Organization
September15-23,2019 Communication Organization
(England,Netherlands,France)
September16,2019 Fieldsurvey Organization
September18,2019 Fieldsurvey Organization
September23,2019 Fieldsurvey Organization
September26,2019 Fieldsurvey Organization
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
September27,2019 Organization,
(TheFirstExtraordinaryGeneralMeeting Fieldsurvey individual
2019)
November 04,2019 Fieldsurvey Organization
November05,2019(Shenzhen) Communication Organization
November 06,2019 Fieldsurvey Organization
November07,2019(Beijing) Communication Organization
November 11,2019(Chengdu) Communication Organization
November 13,2019 Fieldsurvey Organization
November 14,2019 Fieldsurvey Organization
November 19,2019 Fieldsurvey Organization
November19,2019(Beijing) Communication Organization (http://wwCwN.cINniFnOfo.com.cn)
November19-20,2019(Shenzhen) Communication Organization
November 21,2019 Fieldsurvey Organization
November 28,2019 Fieldsurvey Organization
November28,2019(Shenzhen) Communication Organization
November 29,2019 Fieldsurvey Organization
December 17,2019 Fieldsurvey Organization
December 24,2019 Fieldsurvey Organization
Receptiontimes 52times
Number oforganizationsreceived About1,000(1,600+personsintotal)
Number ofindividualsreceived 25persons
Number ofotherintervieweesreceived 0
Whether undisclosedimportant No
information isdisclosed,revealedor
divulged
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section V Significant Matters
I. sCtoomckmoofnthsetoCcokmppraonfyit distribution and transferring capital reserve to capital
Formulation, implementation and adjustment of common stock profit distribution policy, especiallycash dividend policy, during the reporting period
√ Applicable □ Not applicable
According to the Profit Distribution Plan 2018 reviewed and adopted at the Annual General Meeting2018 of the Company, based on the total capital stock of 3,881,608,005, the Company distributed thedividend of RMB 17 in cash (tax inclusive) to all shareholders for every 10 shares. The distribution planwas expressed by the independent directors of the Company, submitted to the general meeting forapproval after reviewed by the board of directors of the Company, and had been implemented on June 6,2019.
Specialnotesoncashdividendpolicy
Wreshoeltuhteiornitsmofegeetsntehrealrmeqeueirtienmg?entsoftheArticlesofAssociation(AoA)orthe Yes
Is thedividenddistributionstandardandproportionspecificandclear? Yes
Are relevantdecision-makingproceduresandmechanismscomplete? Yes
Hroalevse?theindependentdirectorsperformedtheirdutiesandfulfilledtheirdue Yes
Ddeomthaendmsi,naonridtyasrehathreehirolledgearslrhigahvtestahnedcihnatenrceesttsoffuullllyyperxopterecstesdt?heiropinionsand Yes
Aadrejutshtmeeconntsdoitirocnhsaanngdesproofctehdeucraesshndoirvmidaetinvdepaonldictyr?ansparentincaseof Yes
Common stock dividend distribution scheme (plan) and share capital increase from capital surplusscheme (plan) in the past 3 years (including the reporting period):
The Company's cash dividend distribution scheme in 2019: The Company distributed cashdividends of RMB 22 (tax inclusive) for every 10 shares and totaling RMB 8.54 billion in cash.
The Company's cash dividend distribution scheme in 2018: The Company distributed cashdividends of RMB 17 (tax inclusive) for every 10 shares and totaling RMB 6.599 billion in cash.
The Company's cash dividend distribution scheme in 2017: The Company distributed cashdividends of RMB 13 (tax inclusive) for every 10 shares and totaling RMB 5.046 billion in cash.
Common stock cash dividends of the Company in the past 3 years (including the reporting period)
Unit: RMB
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Raticoaosfhtotal
attNrciobemuttpmarboolfenitto aRdtatinrvtiieibdotueoptnafrdbocslfaeittsothodiviCdeansdhsin oaRdtthatinrvetieibirodtuefopotnafrrdbomcslfaeistsintthootfhoo(drismnivecisdli)unedtnooindtnhgseetr
dYiveidaernodfsCashindcivluidseivned)s(tax sltiostcektdhheocloadmnenrpsuaaonlfytihnesotofcctohkmehmolilsodtneerdsot(hseurchfoarmssstoccokmhmolodnersT(ointacllucdaisnhgdthivoidseenidnsattribpurtoafbitleto
stcaotenmsoelnidtaintetdhecomtphaenyin repsuhrcahrease)ocofmthpealinsyteidnotherforms) sotofcctohkmehmolilsodtneerds
year ofdividends cosntastoelmideantetd cosntastotehlmiedeantetd ccoonmsotphlaiednayteind
statement
Year 2019 8,539,537,611.00 17,402,164,190.16 49.07% 0.00 0.00% 8,539,537,611.00 49.07%
Year 2018 6,598,733,608.50 13,384,246,683.60 49.30% 0.00 0.00% 6,598,733,608.50 49.30%
Year 2017 5,046,090,406.50 9,673,721,498.15 52.16% 0.00 0.00% 5,046,090,406.50 52.16%
The Company achieved profit within the reporting period and the parent company's attributableprofit to common stockholders was positive, but no common stock cash dividend distribution plan wasproposed
□ Applicable √ Not applicablerIIe.poPrrtoinfigt pdeisritoridbution and transferring capital reserve to capital stock during the
√ Applicable □ Not applicable
Bonus sharesper10shares(shares) 0
Dividendper10shares(RMB)(taxinclusive) 22
Increase sharesper10shares(shares) 0
Equity baseofdistributionplan(shares) 3,881,608,005
Cashdividend(RMB)(taxinclusive) 8,539,537,611
Cashdividenrdepinurocthhaesrefo)r(mRMs(Bs)uchasshare 0.00
Totalcashdividends(in(cRluMdBin)gthoseinotherforms) 8,539,537,611
Distributableprofit(RMB) 34,542,304,965.71
Ratiooftotfaolrmcass)htodtivoitdaelnddisstr(ibinuctlaubdliengprtohfoitseinother 100%
Cash dividenddistributioninthisperiod
SachcoouuldntthfoerCaomminpiamnuymbeofin4a0%groowftihnegpstraogfietdaisntdribhuatvioenmwahjoernctahpeitparloefxitpisenddisitturirbeuaterrda.ngements,thecashdividendshould
Notesondetailsofprofitdistributionplanorplanfortransferringcapitalreserveintocapitalstock
daTtehewhCeonmtphaenCyo'smcpaasnhydiimvipdleenmdednitsetdribthuetiopnrosfcithdeimstreibinut2io0n1s9c:hBeamseed,tohnetChoemtoptaanlycadpisittarilbsutotecdkcoanshthdeiveiqdueintydsreogfisRtrMaBtio2n2
a(tnadxninoclcuaspivitea)lfroerseevrveeryw1a0ssthraanresfsearrnedddtoisctraibpuittaeldsttootcakllyinRcMurBre8n,t5y3e9a,5r.37,611incash.Nobonussharewasdistributed
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
III. Performance in fulfilling commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the
Company’s actual controller(s), shareholders, related parties, acquirer(s) and other commitment
parties
T√hAeppCloicmabplaen□y NdiostclaopspeldicathbeleNotice on Commitments Concerning Non-Public Offering of Shares onAacptruila1l 9c,o2n0tr1o8lle, rw(sh)icahnddisdcirleocsteodrsthaendcoomffmiceitrmsepnatrstiocifptahteinCgothmepEanSyO, dPiroenctfoivres,acsopnetrcotsll.inDgusrhinagrethheolders,reporting period, the above-mentioned commitment makers had all strictly fulfilled the commitments.2. In case the Company’s asset or project has profit forecast, and the reporting period is still inforecasting period, the Company shall make a statement about the asset or project reaching theoriginal expectation and the reasons thereof.
□ Applicable √ Not applicablesIVh.arNeohno-lodpeersraatinndgthoecircureplaattieodnpaorftiefusnds of the listed companies by controlling
□ThAepCploicmapbalen√y Nhaodt anpopnliocanb-oleperating occupation of funds of the listed companies by controllingshareholders and their related parties during the reporting period.Vdi.recNtoortse(iof nantyh)eonbothaerd"noofn-dsitraencdtoarrsd, atuhdeitbreopaordrt"oof fsthuepearcvcisoournstinagndfirminddeupreinngdethnetreporting period
□ Applicable √ Not applicablemVIe. tNhoodtes coonmcphaarnegdewsitihn thacecfoinuanntciniagl rpeoploicryt,oaf cthceoupnretivnigouessftiismcaatleyseaarnd accounting
√1.ACphpalincgabelsein□ sNigont iafipcpalnictaabclceounting policy
Content andreasonofchangesinaccountingpolicy Remarks
RPreevsiseinntgataionndoPfrfiinntainngciFaolrsmtaatetsmoefnFt:inTahneciMalinSistatrtyemofeFnitnsafnocreGiesnseureadlEthneteNrportiisceesoinn2019 tRheefeitretmosthinetfhoelloFwininagnceixapllSatnaatetiomnesnftosr2d0e1t8ailsof
(CK(2019)No.6)inApril,2019torevisetheformatoffinancialstatementsofenterprise.whichareaffectedbyretroactiveadjustment
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financial statementsofenterprise.
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Estnatnedrparridsse:sTNhoe.2M2in–isRtreycoofgFniintiaonncaenidssMueedasthuereAmcecnotuonftiFnignaSntacniadlaInrdsstrufomreBnutssin(2e0s1s7aindfojursmteadti,oannodftthheebceogminpnairnagblreetpaeinrieoddeisarnnointgsor
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1Ja,n2u0a1r8y;1a,n2d0o1t9h.erdomesticlistedcompaniestoimplementsuchstandardssince lsetaasnedasrtdasn,dnaerdwsrferovemnu2e01s9ta"nfodradrdestaailnsdanbeowut
impact ontheFinancialStatements2018
The impact of CK (2019) No. 6 on the Financial Statements 2018 are presented below:
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Item FinancialStatements2018(Consolidated) FinancialStatements2018(ParentCompany)
Before change Afterchange Beforechange Afterchange
Naoctceosurnetcserievcaebilveaabnled16,261,973,287.83
Notesreceivable 16,134,641,950.86
Accounts receivable 127,331,336.97
Naoctceosupnatsyapbalyeaabnled3,566,293,179.83 175,000.00
Notes payable 413,918,369.11
Accounts payable 3,152,374,810.72 175,000.00
Assetimpairmentloss 10,879,427.89 143,797.84
(Alossssetinimdicpaatiermdewnitthlo“s-”s) -10,879,427.89 -143,797.84
2. Changes in significant accounting estimates
No changes in significant accounting estimates during the reporting period.
3. Adjustment of relevant items in financial statements at the beginning of the initialimplementation year as a result of initial implementation of new financial instrument standards, newrevenue standards and new lease standards
Consolidated financial statements:
Item Balancesheet
December31,2018 Reclassification Remeasurement January1,2019
Notes receivable 16,134,641,950.86 -2,269,711,750.31 13,864,930,200.55
Accoufinntasnrceicnegivable 2,269,711,750.31 2,269,711,750.31
Afvinaailnacbilael-faosrs-seatsle1,200,000.00 -1,200,000.00
Oftinhaenrcnioanl-acsusreretsnt 1,200,000.00 1,200,000.00
Financial statements of parent company:
Item Balancesheet
December31,2018 Reclassification Remeasurement January1,2019
Afvinaailnacbilael-faosrs-seatsle1,200,000.00 -1,200,000.00
Oftinhaenrcnioanl-acsusreretsnt 1,200,000.00 1,200,000.00
4. Note on comparison data before the retrospective adjustments due to initial implementation ofnew standards for financial instruments or new lease standards
Comparison data which does not need retrospective adjustments due to initial implementation ofnew standards for financial instruments or new lease standards during the reporting period.
The Company had no changes in accounting policy, accounting estimates and accounting methodsduring the reporting period.
nVeIIe. ds tNoobteetorancrkeecdtiafincdatrioenstaotfemdajor accounting error in the reporting period which
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
be traTchkeeCdoamndparensytahtaeddndourriencgtiftihceatrieopnoorftinmgajpoerraiocdc.ounting error in the reporting period which needs to
VwIiItIh. theNfointeanocniaclhraenpgoertsoinf tthheepsrceovpioeuosf yceoanrsolidated financial statements compared
√OAnpJpulnicea2b0le, □20N1o9t, athpeplCicoamblpeany and Wuliangye Group, as reviewed and approved by the 5th boardLoftdd."ir,eocftowrhsicohf tthheeCreogmisptearneyd, jcoainptiltyalfuwnadsedRManBd1e0s0tambliilslihoend. TWheuliCaonmg pNaonnygXcoianntrgibSueteridesRBMaBiji9u5YmibiilnlioCno, .,traekgiinsgteurepd9c5a%pitoafl;thaendreWgiustliearnegdNcaopnigtaXl;iaWngulSiaenrgieyseBGariojiuupYciboinntrCibou.,teLdtdR. wMaBs5inmcliulldioend, itnakthinegcuopns5o%lidoafttiohnescope of the Company since its establishment.
IX. Appointment and dismissal of accounting firms
Accounting firm currently appointedName of Chinese accounting firm Sichuan Huaxin (Group) CPA (LLP)
Remuneration ofChineseaccountingfirm RMB1.32million(excludinginternalcontrolandauditfee)
TermofauditingservicesofChineseaccountingfirm 19
Name oftheCPAsofChineseaccountingfirm LiMin,LiuJun
aTeccrmouonftianugdfiitrimngservicesoftheCPAsofChinese The4thyearofMr.LiMin,the2ndyearofMr.LiuJun
□HaYsesth√e Nacocounting firm been changed in current period?
A√pAppopilnictmabelnet□ofNinottearpnpalliccaobnlterol audit accounting firm, financial advisor or sponsorauditTohregaCnoizmaptiaonnyocfothnetinCuoemd ptoanayppinoi2n0t 1"S9icaht uthaencHousat xoifnR(GMrBou6p0)0C,0P0A0.(LLP)" as the internal control andrXe.poSrutspension or termination of listing confronted upon disclosure of the annual
□ Applicable √ Not applicableXI. Bankruptcy reorganization
□ThAepCploicmapbalen√y Nhaodt anpopbliacanbkrleuptcy reorganization during the reporting period.XII. Major litigation and arbitration matters
□ThAepCploicmapbalen√y Nhaodt anpopmlicaajobrlelitigation and arbitration matters during the reporting period.
O√ Athpeprlilcitaigbaletio□nNaontdaaprpbliitcraatbiolen matters
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Amount Whether Enforcement
Basicinformation involvedinthe forming Progressof Resultsandinfluenceoftrialof of Disclosure Disclosure
aboutlitigation case(Unit: estimated litigation litigation(arbitration) adjudication date index
(arbitration) RMB’0,000) liabilities (arbitration) oflitigation
(arbitration)
InconsiderationthatBinhe
Companyfailedtofulfillthe
paymentobligationwithinthe
The Companysued timespecifiedinthejudgment,
Beijing Tanshi theCompanysubmittedan
Ruifeng TradeCo., applicationtoBeijingNo.1
Ltd. andGansuBinhe IntermediatePeople’sCourtfor The
Food Industry Thecase enforcementonOctober11, enforcement
(Group) Co.,Ltd.for 7,000 No hadbeen 2019.BeijingNo.1Intermediate hadbeen
infringement ofthe settled People’sCourtpublishedmain completed
exclusive righttouse contentsofthejudgmentonthe
the trademark ChinaIntellectualProperty
"Wuliangye" NewsonDecember27,2019,
andremittedtheexecuted
moneyofRMB5,482,250to
theaccountoftheCompanyon
January4,2020.
InconsiderationthatBinhe
Companyfailedtofulfillthe
paymentobligationwithinthe
The Companysued timespecifiedinthejudgment,
Beijing Tanshi theCompanysubmittedan
Ruifeng TradeCo., applicationtoBeijingNo.1
Ltd. andGansuBinhe IntermediatePeople’sCourtfor The
Food Industry Thecase enforcementonOctober11, enforcement
(Group) Co.,Ltd.for 6,000 No hadbeen 2019.BeijingNo.1Intermediate hadbeen
infringement ofthe settled People’sCourtpublishedmain completed
exclusive righttouse contentsofthejudgmentonthe
the trademark ChinaIntellectualProperty
"Wuliang Chun NewsonDecember27,2019,
(Spring)" andremittedtheexecuted
moneyofRMB4,465,800to
theaccountoftheCompanyon
January4,2020.
XIII. Punishment and rectification
□ThAepCploicmapbalen√y Nhaodt anpoppliucanbislhement or rectification during the reporting period.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
cXoIVn.trollCerresdit conditions of the Company, its controlling shareholders and actual
T√hAeppCloicmabplaen□y,Nitostcaopnptrlioclalinbgleshareholders and actual controllers had good credit conditions duringthe reporting period.
XemV.ployIemepinlecmenetnivtaetimoneasouf rethse Company's equity incentive plan, ESOP or other
√ Applicable □ Not applicable
The 11th meeting of the 5th board of directors of the Company held on October 30, 2015 and theannual general meeting of 2015 held on June 22, 2016 reviewed and approved the Proposal for the FirstPhase of Employee Stock Ownership Plan (ESOP) of Wuliangye Yibin Co., Ltd. (Draft) (Subscription inNon-Public Offering of Shares) and its Summary, approving the Company to implement the ESOP.
The shares issued by non-public offering for the Company's ESOP were issued and listed on April19, 2018. In August, the Company held the 1st meeting of shareholders participating the ESOP and setup the management committee of the ESOP (Phase I). Participants of the ESOP included directors,supervisors, senior management, and other employees of the Company, 2,428 persons in total, andsubscribed 23,696,280 shares, taking up 0.61% of total capital stock of the Company.
At the end of the reporting period, current directors, supervisors, senior management, and membersof CPC of the Company (Li Shuguang, Chen Lin, Zou Tao, Yang Yunxia, Wu Guoping, Zhu Zhongyu,Tang Bochao, Tang Shengyun, Luo Wei, Zhao Dong, Wu Jianjun and Peng Zhifu) participating the ESOPindirectly held 1,898,683 shares through the Guotai Junan Fund Management Plan, taking up about 2.22%of the shares issued through non-public offering. At present, the management committee of the ESOP iscomposed of 30 persons, including 1 director and 1 deputy director. There was no change during thereporting period. Scheme for handling the demission and resignation of holders of the ESOP is underresearch.
XVI. Major related transactions
1. Related transactions related to daily operation
√ Applicable □ Not applicable
The Company signed the Financial Service Agreement and the Supplemental Agreement to theFinancial Service Agreement with the Finance Company on April 12, 2018 and March 20, 2019,respectively. The main contents were deposits and loans service. Daily balance of deposits was no morethan RMB 32.9 billion in 2019 and daily balance of loans no more than RMB 2.5 billion in 2019. Refer to"Section XII, X. Related parties and related transactions, 5. Related transactions (5) Other relatedtransactions" for details about related transactions between the Company and the Finance Company.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Related transactions arising from the acquisition or sale of assets or equity
T□hAepCploicmabpalen√y Nhaodt anpoprleiclaabteled transactions arising from the acquisition or sale of assets or equity ofthe Company during the reporting period.3. Related transactions of joint foreign investment
T□hAepCploicmabpalen√y Nhaodt anpoprleiclaabteled transactions of joint foreign investment during the reporting period.4. Current associated rights of credit and liabilities
T□hAepCploicmabplaen√y Nhaodt anpopcliucrarbelnet associated rights of credit and liabilities during the reporting period.5. Other major related transactions
T□hAepCploicmapbalen√y Nhaodt anpopolitchaebrlemajor related transactions during the reporting period.XVII. Major contracts and their performance1. Trusteeship, contracting and lease
(1) Trusteeship
T□hAepCploicmapbalen√y Nhaodt anpoptlricuasbteleeship during the reporting period.(2) Contracting
T□hAepCploicmapbalen√y Nhaodt anpopcliocnatbrlaecting during the reporting period.(3) Lease
T□hAepCploicmapbalen√y Nhaodt anpoplleicaasbeleduring the reporting period.2. Major guarantee
□ThAepCploicmapbalen√y Nhaodt anpopgliucaabralentee during the reporting period.3. Entrusted cash asset management(1) Entrusted financing
T□hAepCploicmapbalen√y Nhaodt anpopelincatrbulseted financing during the reporting period.(2) Entrusted loan
□ThAepCploicmapbalen√y Nhaodt anpopelincatrbulseted loan during the reporting period.4. Other major contracts
□ThAepCploicmapbalen√y Nhaodt anpopolitchaebrlemajor contracts during the reporting period.XVIII. Social responsibility1. Fulfillment of social responsibility
Refer to the Social Responsibility Report 2019 disclosed by the Company on April 28, 2020.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Show social responsibility by setting poverty alleviation targets
(1) Targeted poverty alleviation
The Company has always recognized that there is a huge, political responsibility to tackle povertyalleviation and it has set targets to help alleviate those in poverty-stricken areas. In 2019, the Companyfocused on the principle of "giving people a leg up to help them get going and develop". The Companydemonstrated its advantages in capital, production, and marketing, and assisted with poverty alleviationin a number of regions, including Litang County within the Ganzi Prefecture, Xingwen County andPingshan County in Yibin. It helped alleviate people who had impoverished industries, insufficienteducation, limited consumption pools, and those who suffered from basic poverty.
(2) Annual summary on poverty alleviation targets
The Company has so far contributed RMB 273 million towards the poverty alleviation fund andpurchased over RMB 45 million’s worth of poverty alleviation products. The Company won the SocialResponsibility award at the 12th People’s Enterprise Poverty Alleviation Awards, and the People’s Dailyaward for Targeting Poverty Alleviation, serving as a recommended model for building capability. It wasvoted one of the Top 50 "Social Organizations for Alleviating Poverty", and was one of the 2018"Advanced Units for Alleviating Poverty in Sichuan". It was also a leading group in the State Council’s"Sichuan Advanced Poverty Alleviation Collective of 2019", and the "Most Charitable Enterprise" inSichuan Province.
Capitalizing operations, and building the "Wuliangye + Village Collective Asset ManagementCompany+Farmers" model
The Company donated RMB 2.1 million to Litang County in the Ganzi Prefecture, and used overRMB 12 million to establish the first village collective asset management company in Ganzi. The equitywas apportioned to farmers at the Wuliangye Litang Polar Fruits and Vegetables (Mushroom) Base, andthey became the production operators. This motivated farmers to take part in industrial development.The Company provided aid with a "Purchase Rather Than Donate" scheme. It helped drive the collectiveeconomy of the village through extensive marketing, and made more than RMB 7.1 million in revenueand dividends of over RMB 1.5 million. The Company donated RMB 1.25 million to Xingwen County inYibin for the Wuliangye Qingshanyan Bamboo Forest (Nursery Garden) Demonstration Base, and itapportioned the equity to the village-collective asset management company. They drove the village’scollective economy and made nearly RMB 600,000 in revenue and dividends of nearly RMB 100,000through equity quantification. The Company implemented an innovative model centered on thevillage-collective asset management company, and was able make the transition from traditional,
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
agricultural production to having capitalized operations. It demonstrated the increased importance of
playing a leading industrial role.
Industrialized operations, building the "Wuliangye+Industrial Base+Farmers" model
The Company had always organically integrated base construction with rural revitalization. It hasencouraged farmers to carry out moderate-scale operations and has promoted land transfers and topquality construction on farmland. It has used more than one million mu to construct a core demonstrationarea, and a special grain base for brewing. In Xingwen County, Yibin, the Company built the 1,100-muWuliangye Qingshanyan Bamboo Forest (Nursery Garden) Demonstration Base. This mainly producedbamboo pulp and this was subsequently purchased by the Yibin Paper Industry Co, Ltd. via theCompany. This helped solve the problem of farmers’ long-term revenue. The Company has alsodeveloped its auxiliary industries such as bamboo and bonsai planting/breeding in the bamboo forest, inorder to improve its land resources and solve both long and short-term problems with farmers’ revenues.The Company built the 42-mu Wuliangye Litang Polar Fruits and Vegetable (Mushroom) Base in LitangCounty, Ganzi Prefecture. It is an enclave park with a plateau and it has helped stimulate thedevelopment of seven poor villages and nearly 400 peasant households. The mushroom products at thisbase were the first to obtain a green food mark in Litang County.
Market-oriented operations, building the "Wuliangye+Large Group and LargeEnterprise+Farmers" model
The Company made full use of its market mechanism to find the interest bonds for alleviatingconsumption poverty. It increased the revenue of farmers by hosting trade shows, and at regular andirregular intervals purchased products by employees to help alleviate them of poverty. It created aspecial poverty alleviation zone for products on the digital "Wuliangye Family" labor union platform.
While boosting the confidence of farmers, the Company gave full play to the advantages of its"multi-dimensional diversified industry platform". The Company introduced brand and marketingmanagement packages to leading groups and large enterprises, so that there could be long-termcooperation. It injected new impetus into poverty alleviation by strengthening its brand connotations andmodern marketing concepts. The Company strengthened its cooperation with large on-line and off-linegroups/enterprises, such as www.freshhema.com, JD.com, and ZHNK. It actively took part in povertyalleviation activities and hosted multiple large exhibitions for farmers to exhibit their grains nationally tosocial organizations. These included both national agricultural exhibitions and sideline product and foodsafety exhibitions, so they could build a better marketing channel, and a more stable and long-lasting
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
marketing network. The Company mobilized social forces to be active in poverty alleviation activities,
and they helped quickly turn the products used for poverty alleviation into marketable products.
Enterprise-dominant operations, building the "Wuliangye+Echelon Cultivation ofTalent+Farmers" model
The Company donated millions of educational and multi-media classroom materials and activelysupported work in the Ganzi Prefecture to "Prevent Dropouts and Ensure Compulsory Education". It builtthe Wuliangye Hope Primary School and donated money towards the construction of the "Five-Love"teaching building. It established the Wuliangye Education Fund which contains more than RMB 20million. This has been used to reward teachers and assist impoverished students. It has also been usedto introduce technical experts into the industry, who have helped farmers receive technical training,improve their technical knowledge, and become newly professional industrials that industrial bases canrely on. Six poverty alleviation cadres were selected and sent by the Company to the front-line ofimpoverished areas, and they led local farmers to take part in production management, fund-raising,marketing and other activities. In doing so, they helped them to comprehensively develop, andthemselves promoted the extension of basic public cultural services in the countryside. Their excellentdeeds were widely publicized and they prospered as a result of this centralized publicity. This helpedbuild momentum for more rural governance systems that could tackle poverty and achieve prosperity.
Party Cohesion, building the "Wuliangye Party +'Two Village Committees' +PartyMembers+Farmers" model
The Company helped construct a party branch at the Polar Fruits and Vegetables (Mushroom) Basein Litang County, Ganzi Prefecture. It provided construction materials, helped boost work performance,and innovated how to implement shared resources. In Xingwen County, Yibin, the Company built a homefor the masses and a public service center in the Qingshanyan Village. It introduced the concept of aparty-backed Wuliangye cultural center and greatly strengthened the cohesion of the party atvillage-level. In Pingshan County, Yibin, the Company cooperated with the village enterprise to build the"Wuliang New Village·Virtuous Baixiang" demonstration site. This breathed new life into the rural(la3n)dsTcaarpgeetaenddphoevlpeertdysatallretivnigataionneewffeercatof modern, rural party construction.
Index Unitofmeasurement Quantity/performance
I. Generalsituation -- --
Including: 1.Funds RMB'0,000 13,358
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)RmMatBer2ia0ls0,t0o0X0ia(dmounlaatiTnogwRnMshBip1;2d0o,n0a0t0inogf3e0d0ucsaettisonoaf lcahnadritcaubllteural
2. Amountconvertedfrommaterials RMB'0,000 pdaonckaatignegsRvMalBue5d0,R0M00Bo3f0e,d0u0c0attoiocnoaulnmteartpeariratlsastosisXtiendjiereVgiilolangse;aPnridmary
School ofDayuanEthnicPrimarySchoolofXianfengTownship)
3po.NveurmtybuenrdoefrptohoerhpeelpopoleftwhehoCmomovpeanoyutof Person VInill2a0g1e9o,fthPeinCgosmhapnanCyouhnetlpyetodg2e1tpreidrsoofnpsoovefr5tyhouseholdsofBaixiang
II. Inputbyitems -- --
1. Industrialdevelopmentpovertyalleviation -- --
Ipnocvluedrtiynga:lle1v.1iaTtiyopneporofjiencdtustrialdevelopment --
m5(ucsohnrsotorumctaionndoTfibtheetacnhaagraacritcesr)isbtiacsaegorifcSulhtuarnaglmpraoydaunctVsil(laTgibee,taXniamula
1p.o2veNrutymablleervoiaftiinodnupsrtorijaelcdtevelopment Piece TbQorienwwgnsisnhhgaipng,yraLaiinntaVbniagllsaCego;euc,onXntiyns;tgrcwuocentnsiotCrnuoocuftinothtnye;opcfoothvneesrtbrtyuacmatlilobenovoioafitnitodhnueswstorpyrekocsifahlopof
aXnindgpwreonmCotoinugnttyh;eccoonnsstrturucctitoionnooffthtrean"rsupraolrtraetvioitnaliinzfartaiosntruincdtuursetraianldrothaed"
rural revitalizationstrategy)
1po.3vAermtyoaulnletvfoiartiionndupsrotrjieacltdevelopment RMB'0,000 10,100
1p.o4veNrutymubnedreorftphoeohreplpeoopflethewhCoogmeptarnidyofPerson
2. Transferemploymentpovertyalleviation -- --
tInracilnuidnigng:2.1Amountforvocationalskill RMB'0,000
2tr.a2inNinugmberofattendeesofvocationalskill Person-time
t2h.3eNheulmpboefrthoefCemomplpoaynmyentofthepoorunder Person 48
3. Povertyalleviationrelocation -- --
Irneclolucdaitnegd:h3o.1usNeuhmolbdeurnodfeermthpelohyemlpenotfothfe Person
Company
4. Educationalpovertyalleviation -- --
Isntuclduednintsg:4.1Amountforfundingpoor RMB'0,000 258
4un3dpeerrgsroandsua(pterosvwiditihngReMdBuc5a,t0io0n0a/plearsssoisnt,agnrcaenttiong20stouudtesntatnsduibnsgidpioeosrof
4.2 Numberofpoorstudentsreceivingfund Person RedMuBca1ti0o0n,0p0o0v;edrtoynaaltleinvgiaRtiMonBp2ro.4je8cmtoilflioYnibfino,rasnudppsourbtisnigditzhinega2cr3obatics
students)
RMB 200,000(donatingRMB120,000ofeducationalandcultural
4re.3soAumrcoeusnotffoimripmopvreorvisinhgededaurecaastionalRMB'0,000 pmdaoacntkaeatriignaeglssRtvoMaXlBuiae5md0,uR0lMa00TBoo3wf0en,ds0hu0ic0pa;ttodioocnnoaaultnminteagrtpe3ar0ira0tlsasestostsisXotiefndcjiehreaVgriiiltolaanbgslee;aPnridmary
School ofDayuanEthnicPrimarySchoolofXianfengTownship)
5. Healthpovertyalleviation -- --
Irnecslouudricnegs:5o.f1imApmoovuenrtisfhoerdmaerdeiacsalandhealth RMB'0,000
6. Ecologicalprotectionpovertyalleviation -- --
Including: 6.1Typeofproject --
6.2 Investmentamount RMB'0,000
7. Subsistenceallowance -- --
IBnechluinddin"gp:e7r.s1oAnnmeoluntforthe"ThreeLeft RMB'0,000
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
p7.e2rsNounmneblerreocefitvhieng"ThherlepeLeftBehind" Person
7.3 Amountforpoordisabled RMB'0,000
7.4 Numberofpoordisabledreceivinghelp Person
8. Socialpovertyalleviation -- --
cInocolupdeirnagti:o8n.1beAtmweoeunntEfoarstpaonvedrWtyeasllteCvihaitnioanRMB'0,000
8.2 Amountforfixed-pointpovertyalleviation RMB'0,000
f8o.3unAdmatoiounntforpovertyalleviationcharitable RMB'0,000
9.Consumptionforpovertyalleviation
IDnocnluadtiionng"9c.1ha"rPaucrtcehriasstiecRagartihceurltuTrhaalnproductsRMB'0,000 2,666
10. Otherprojects -- --
r3e(sdpoencatitvinegly,RRMMBB12mmilliilolionntoinYtaojtiaaln;gdoCnoautinntgyRanMdBX7in0l0o,n0g00Cotounfitlly,thegap
Including: 10.1Numberofprojects Piece offundsforstrengtheningtheweakpointsaccordingtothestandardsofJiejiVillage,PingbianYiNationalityTownship,PingshanCounty;
dofovnialltainggeRenMteBrp6r4is0e,0c0o0-ctoonssutprupcotriotnthoefcBoanisxtirauncgtioVnilloafgdee)monstrationsite
10.2 Investmentamount RMB'0,000 334
10.3. Numberofpoorpeoplewhomoveout Person In2019,theCompanyhelped21personsof5householdsofBaixiangofpovertyunderthehelpoftheCompany VillageofPingshanCountytogetridofpoverty
III. Awardsreceived(content,level) -- --
"ASdovcainacleOdrgFaixneizda-tPiooninPtoPvoevretyrtAylAlellveiavitaiotinon50UBnietsDtiCreacstleysU",n"dSeicrhPuraonvincial
JCuorlilsedcitcivtieon2021091"8o",fathnedS"tSaitcehCuaonunAcdilvLaenacdeidngPoGvreorutypAOllfefivcieatoiofnPoverty
oAfllSeviciahtuioannaPnrdovDinecvee.loZphmanegnwt,ethne,s"uMpoesrtviCsohraroitfaWblueliDanognyaetinMgaEsnstWeroprrkise"
VDiellpaagret,mXeinatmaunladTmoewmnbsehripo,fLtihtaenwgoCrkoutenatym,GstaantizoinPerdefaetcStuhreanwgamsayan
hAosnsoisrteadncaeso"AfSdvicahnucaend2In0d1i8v"idualofthePovertyAlleviation'Five-One'
(4) Subsequent targeted poverty alleviation plan
The Company will accomplish its work by optimizing industrial development, offering educational
assistance, assisting with consumption, and guaranteeing developments in line with the
instructions/requirements of the Central Government and the Sichuan Provincial Party Committee and
Government. It will baseits povertyalleviationpractices inYibin’sXingwenCountyand PingshanCounty,
and Litang County in the Ganzi Prefecture.
Optimize industrial development. 1) The Company will earnestly promote the Qingshanyan
bamboo industrial project in Xingwen County.The Company has finished funding the industrial base for
Qingshanyan Bamboo Base. It will continue to promote new bamboo products from the nursery garden
(bamboo fungus, tricholoma matsutake, etc.), and will expand and refine its bamboo product operations.
2) The Company will continue to promote standardized operations and developments at the Litang
"Polar Fruits and Vegetables"(Mushroom) Base. The Company will make full use of its scale and talent
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
to vigorously promote new technologies. It will standardize the production of mushrooms, and will make
full use of the "Zangziyuan" (“藏孜源” in Chinese) registered trademark. It will extend its industrial chain
and thoroughly drive forward the development of Litang County’s edible mushroom industry.It will play
an active role in poverty alleviation by ensuring industrial development and increasing local revenue. 3)
The Company will continue to provide industrial assistance in the Baixiang Village in Pingshan County.
The Company will utilize its local resources and strengthen the impetus for better communication and
more innovation in Baixiang Village. 4) The Company will promote the construction, consolidation and
subsequent upgrades of a special brewing grain base. The Company will upgrade its million-mu brewing
grain base. It will increase the revenue of poor households and build a new model that can serve as an
example in meeting the benchmark for targeted poverty alleviation. At the same time, it will gradually
establish a special grain supply system for liquor production that is green and organic.
Refine educational assistance. 1) The Company will continue to promote the "Prevent Dropout
and Ensure Compulsory Education" scheme in Litang County. The Company will increase its efforts to
ensure educational assistance. It will donate RMB 100,000 into a special fund to subsidize 20 poor
students from Litang County (RMB 5,000/person). It will actively promote the construction of a network
for all middle schools and classrooms across Litang County. 2) The Company will continue to provide
educational assistance to Xingwen County and Pingshan County.The Company will continue to donate
care packages (containing schoolbags, stationaries and books) to poor students in Xingwen County and
Pingshan County.3) The Company will follow up on its relief efforts to tackle education poverty in Yibin,
and it will ensure the project sees substantial results. 4) The Company will carry out various activities
and give donations once it has certified the practices of Xingwen County,Pingshan County,and Litang
County. It will carry out research, surveys and through negotiations.
Boost consumption to alleviate poverty. 1) The Company will actually push "Purchase Rather
Than Donate" activities in the regions it is assisting. It will purchase agricultural products that are
characteristic of these poor regions and distribute them as employee benefits during "Spring Festival",
"Mid-Autumn Festival", "Poverty Alleviation Day", and other holidays. 2) The Company will carry out the
“Purchase Rather Than Donate” project and update products on a regular basis. It will collect the
information for employees' orders, and distribute products centrally. 3) The Company will steadily
promote the centralized RMB 15 million "Purchase Rather Than Donate" project in the Liangshan
Prefecture. 4) The Company will give play to advantages of the platform, actively help to expand both
on-line and off-line sales platforms/channels, and continue to promote the sales of poverty alleviation
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
products to drive the development of regional industry and economy and increase the revenue of the
masses.
Guarantees to strengthen development. 1) The Company will actively take responsibility forrevitalizing rural Yibin. It will fund RMB 300 million to construct an "industrial path for rural revitalization"over the next three years. It will support construction of the "Four Good Rural Roads" which will maketravel easier for farmers, and it will make further improvements to the infrastructure for regionaldevelopment. 2) The Company will work with the village enterprise to construct a demonstration site inthe Baixiang Village. It will spread spiritual guidance and inspire the masses to be free of poverty. 3) TheCompany will continue to consolidate its poverty alleviation workshop in Xingwen County and will drivelocal employment, gradually increasing revenue. 4) The Company will send work groups to the counties,townships, and villages to research and survey the masses. They will inspire enthusiasm in them to befree of poverty and become rich.
3. Conditions related to environmental protection
envirWonhmetehnetralthperoltiestcetidoncoamutphaonriytieasnd its subsidiaries are key pollutant discharging units announced by
The Company and its subsidiaries voluntarily disclose the following information:
Nameofthe Nameofmain Pollutantpollutantsand Emission Number Outlets Emission emission Total TotalCompanyor emissions Excessive
subsidiaries characteristic Means ofoutlets Distribution concentration standard emissions approved emissionpollutantsobserved
Outlets of
COD cOorngtainnuizoeuds1 treaatmdveanntcaeredaof 133.39 Non-excess
emission theEPnrovtierocntimonental31.80mg/L tons 400tons ive
Company
aOduvtalentsceodf
AnmitrmogoenniacOorngtainnuizoeuds1 tthreeaEtmnveinrotnamreeanotafl0.67mg/L Discharge 3.04tons 40tons Non-excess
emission Standardof iveProtectionWaterPollutants
YiWbinulCiaon.g,yLetd. OCoumtleptsanoyf AfolrcoFheormlaenndtation
Total cOorngtainnuizoeuds1 treaatmdveanntcaeredaof DInidsutislletrdySpirits Non-excess
phosphorus emission theEPnrovtierocntimonental0.39mg/L (GB27631-2011) 1.62tons / ive
Company
Outlets of
Totalnitrogen cOorngtainnuizoeuds1 treaatmdveanntcaeredaof 9.04mg/L 37.27tons / Non-excess
emission theEnvironmental iveProtection
Company
81.84mg/m3 StaEnmdaisrdsioonfAir
Wuliangye Organized 102.27mg/m3 PollButoainletrsfor 3,678.33 Non-excess
Yibin Co.,Ltd. Sulfurdioxide intermittent 4 Park (GB13271-2014 77.82tonsemission314.55mg/m3 tons ive)Emission
Standard ofAir
294.68mg/m3 IPnodlulusttarinatlsKfiolnr
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(GaBnd90F7u8r-n1a9c9e6)
207.73mg/m3 StaEnmdaisrdsioonfAir
210.31mg/m3 PollutantsforBoiler
YiWbinulCiaon.g,yLetd.Nitrogenoxide iOntregramniitzteendt4 Park 242.27mg/m3 (GB)1E3m2i7s1s-io2n014243.27 2,374.84 Non-excess
emission SPtaonllduatarndtsoffoArirtons tons ive
215.98mg/m3 IannddusFtruiarnlaKcilen
(GB9078-1996)
66.44mg/m3 ESmtanisdsaiordnofAir
76.80mg/m3 PollutantsforBoiler
Wuliangye Organized 31.97mg/m3 )(GB13271-2014
Yibin Co.,Ltd. Particulates inetmerimssititoennt4 Park EStmanisdsaiordnofAir 51.51tons / Non-ievxecess
30.45mg/m3 IPnodlulusttarinatlsKfoilnr
(aGnBd9F0u7rn8a-1c9e96)
(1) Construction and operation of pollution-control facilities
The Company has 3 wastewater pretreatment stations and 1 wastewater advanced treatment zone,using biochemical treatment and Fenton treatment technology for wastewater treatment.
The Company has 15 natural gas boilers (20t/h), which adopt the advanced low NOX combustiontechnology of first-line brands of German and are under good condition. The drying boiler andenvironmental-protection boiler had been shut down in July 2019.
(2) Environmental impact assessment on construction project and other environmental
administrative licenses
The new, renovation and expansion projects of the Company all met the requirements of laws andregulations such as the national environmental protection law and the environmental impact assessmentlaw, went through the environmental impact assessment and approval process before commencement,and carried out environmental protection acceptance after completion.
(3) Contingency plan for environmental emergencies
The Company has formulated the Contingency Plan for Environmental Emergencies which hasbeen filed with Yibin Environmental Protection Bureau after expert review. On August 22, 2019, theCompany carried out the "Environmental Emergency Drill 2019" at Zone F of Push Group. According tothe drill, it is verified that the Company has effective Contingency Plan for Environmental Emergenciesand is capable of handling emergencies, and all its units cooperate closely, making orderly coordinationand organization.
(4) Environment self-monitoring scheme
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
From January to May of 2019, the Company disclosed the self-monitoring data to the society on theSelf-monitoring Information Disclosure Platform of Enterprise under Key Monitoring of Sichuan Provinceas required by Environmental Protection Department of Sichuan Province, and disclosed theself-monitoring data to the society on the Pollutant Source Monitoring Information Management andSharing Platform of Sichuan Province since June. The Company disclosed totally 72,862 pieces ofself-monitoring data about wastewater, flue gas, noise, etc. to the society throughout 2019.
The Company, through its official website, disclosed basic information, drainage information,construction and operation of pollution preventing and controlling facilities, environmental impactassessment on construction project, and other environmental administrative licenses, contingency planfor environmental emergencies, and annual self-monitoring scheme and report of the Company to thesociety on a monthly basis with 12 issues in total.
(5) Other environmental information to be disclosed
None
(6) Other information related to environmental protection
① The Company actively promoted green projects and carried out the construction of thecoal-to-gas project (phase III).
②In 2019, the Company treated 3.9738 million tons of wastewater and the exhaust emission wasabout 1.573 billion cubic meters, with 100% up-to-standard discharge/emission.
③There was no environmental pollution accident in 2019.
④ In May 2019, the Company sponsored Sichuan Energy Conservation Association to hold“Sichuan Green Industrial Development Summit Forum 2019 and the First 'Wuliangye' Cup EnergyConservation Brand Award Ceremony of Sichuan Province” to promote development of theenvironmental protection industry.
⑤Honors awarded in 2019
The cleaner production of the Company was approved and accepted, reaching domestic advancedlevel; the Company was honored as the "Sichuan Environment Integrity Enterprise 2018" and had beenreceiving this honor for three consecutive years (year 2016, 2017 and 2018); the environmentalprotection wetland project of the Company won the “Sichuan Energy Conservation and EnvironmentalProtection Brand Demonstration Project Award 2018”; and was honored as "Sichuan IndustrialResources Comprehensive Utilization Base (Park, Enterprise)" in the first batch.
XIX. Note on other major events
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The Company had no other major events to be explained during the reporting period.XX. Major events of subsidiaries
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section VI Changes in Shares and Shareholders
I. Change in shares
1. Change in shares
Unit: Share
Before thischange Increase/decrease(+,-) Afterthischange
Quantity Proportion nIseswuasnhcaereosfBsohnaruesCreasopefitrpavuleizbafluictinodnOthers Sub-total Quantity Proportion
I. Restrictedshares 85,839,587 2.21% 10,450 10,450 85,850,037 2.21%
s3h.aOrtehheorlddionmgestic 85,839,587 2.21% 10,450 10,450 85,850,037 2.21%
lIengcaluldpinegrs:oDnomestic85,641,285 2.20% 85,641,285 2.20%
shareholding
pDeormsoenstsichanraethuroaldling 198,302 0.01% 10,450 10,450 208,752 0.01%
II. Unrestrictedshares 3,795,768,418 97.79% -10,450 -10,450 3,795,757,968 97.79%
1R.MCBo)mmonshare(in 3,795,768,418 97.79% -10,450 -10,450 3,795,757,968 97.79%
III. Totalshares 3,881,608,005 100.00% 0 0 3,881,608,005 100.00%
√ReAapspolicnasbfloer□cNhaont agpepilnicasbhlaeresthe reDsuirginngedthoeffirceeprosrtoinf gthpeeCrioomd,ptahneyc.hange in shares was caused by increase of the lock-up shares of
□ApApprpolivcaalbolef √chNaontgaepspliincasbhleares
□TrAapnpslfiecar bolfes√hNaroet acphpalnicgaebsle
□ImApplpelmiceanblteat√ioNnopt raopgprliecsasbloef share repurchase
□ImApplpelmiceanblteat√ioNnopt raopgprliecsasbloef reducing repurchased shares by centralized competitive biddingasseItmsppaecrtsohfasrheaartetrcibhuatnagbeles toonctohme mbaosnicsheaarrnehinogldsepresrosfhtahree,Cdoimlupteadnyeaarnndinogtsheprefrinsahnacreia, lnientdex
in th□e Ampopslitcarebcleen√tNyoetaarpapnlidcatbhlee most recent period
authOortihtieersintofodrmiscaltoiosnethe Company deems necessary or required by the securities regulatory
□ Applicable √ Not applicable2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Increase in Nusmhabreersof
Name of Beginningnumber currentperiod curerrleenatsepderiinodEndingnumberof Reasonforbeing
shareholder ofrestrictedshares NreusmtrbicetreodfNumberof restrictedshares restricted Dateofrelease
shares resshtarircetesd
Liu Zhongguo 38,850 12,950 51,800 Lock-upduetoresignofofficer 20200326
Total 38,850 12,950 51,800 -- --
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable √ Not applicablet2h.e CNoomtepoannychanges in the total shares, shareholder structure, asset and liability structure of
□ Applicable √ Not applicable3. Existing internal employee shares
□ Applicable √ Not applicableIII. Shareholders and actual controller(s)1. Number and shareholding of shareholders of the Company
Unit: Share
preTfoetrarled
shareholders
sThoatraelhcoolmdemrsonat Totalpreferred witrhigvhotsting
sThoatraelhcoolmdemrsonat282,960 ptrheevieonudsomfothneth rsihgahrtsehreosldtoerresdw(iitfhavnoyt)inagtraensyt)oraetdth(eif
rethpeoretinndgopfetrhioed disbcelofosruerethdeate 296,724 theendopfetrhioedreporting epnrdevoioftuhse
ofthReepAonrntual mdoinstchtlhobeseufroere
draetpeoortfinthge
period
Shareholders holdingmorethan5%sharesortop10shareholders
Numberof Incroerase Pledgeorfreezing
Nameofshareholder shNaarteuhreoldoefr SPharorephoortlidoinngresthhpeaorreetinnsdghoepfledtrhiaoetddedcutrhreienagsesNhreuasmrterbsicethreedoldfusNhnuaremresbtsreihcrteeolddf
Quantity reppeorriotidng Status Quantity
OYipbeinraStitoanteC-Oow.,nLetdd.AssetsSletgaatel-poewrsnoend 35.21% 1,366,548,020 1,366,548,020
SCioc.h,uLatdn.YibinWuliangyeGroup Sletgaatel-poewrsnoend 19.63% 761,823,343 761,823,343
HLtodn.gKongSecuritiesClearingCo., Oveprseerasosnlegal 8.64% 335,547,084 335,547,084
CCohrinpaorSaetiocunrLitiiemsitFedinanceOthers 2.38% 92,385,936 92,385,936
CCeon.,tLratdl.HuijinAssetManagement Sletgaatel-poewrsnoend 1.04% 40,192,100 40,192,100
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
LCihminitaedLi-feTrIandsiutiroannacle-COordminpaarnyy
SInhseunraznhceenProduct-005L-CT001 Others 0.87% 33,683,218 33,683,218
WEmulpialonygeyeeSYtiobcinkCOow.,nLetrds.h-ipPlan Others 0.61% 23,696,280 23,696,280
(Phase I)
AShssaentgMhaainGaugoetmaieJnutnCaon.,SLetdc.u-rities
BJuannxkiaonfgCWhinualia-GnguyoetaNiJou.1nan Others 0.50% 19,414,047 19,414,047
Collective AssetManagementPlan
EAgFruicnudltuCraonlBsuamnkptoiofnCIhnindausLtrimyited- Others 0.38% 14,772,807 14,772,807
Equity SecuritiesInvestmentFund
TBaoinkuansg-LPiefersIonnsaulranceCo.,Ltd.- Others 0.33% 12,820,710 10,421,704 2,399,006
Bonus-019L-FH002 Shenzhen
cEoxnpclaenrtaetdioansctaiobnoaumttohnegatshseocaibaotivoen-mreelanttiioonnsehdipor Aamwohnogllyt-hoewtnoepd1s0usbhsaidrieahryolodfeYrsiboinftShteatCeo-omwpnaendy,ASsiscehtusaOnpYeibraintioWnuClioa.n,gLyted.G,aronudpitCisou.,nLctlde.airs
shareholders whetherotherpublicshareholdershaveanyassociationrelationshiporactinginconcert.
Shareholdingoftop10shareholderswithunrestrictedshares
unreNsturimctbeedrsohfares Classofshare
Nameofshareholder hetlhdeartethpeoretinndgof
period Classofshare Quantity
Quantity
Yibin State-OwnedAssetsOperationCo.,Ltd. 1,366,548,020 Commonshare(inRMB) 1,366,548,020
Sichuan YibinWuliangyeGroupCo.,Ltd. 761,823,343 Commonshare(inRMB) 761,823,343
Hong KongSecuritiesClearingCo.,Ltd. 335,547,084 Commonshare(inRMB) 335,547,084
China SecuritiesFinanceCorporationLimited 92,385,936 Commonshare(inRMB) 92,385,936
Central HuijinAssetManagementCo.,Ltd. 40,192,100 Commonshare(inRMB) 40,192,100
PCrhoindaucLt-if0e0I5nLs-uCraTn0c0e1CSohmenpzahneynLimited-Traditional-OrdinaryInsurance 33,683,218 Com(inmRonMsBh)are 33,683,218
SAgerciucuritltieursaIlnBvaenstkmoefnCthFiunnadLimited-EFundConsumptionIndustryEquity 14,772,807 Com(inmRonMsBh)are 14,772,807
Bank ofChinaLimited-EFundSmallHybridSecuritiesInvestmentFund 12,800,000 Commonshare(inRMB) 12,800,000
BInavnekstomfeCnhtiFnaunLdimited-CMFCSIWhiteSpiritIndexClassificationSecurities 11,425,051 Com(inmRonMsBh)are 11,425,051
IGnrdouwstthriaHlyabnrdidCSoemcumreitirecsiaIlnBvaensktmOefnCtFhiunnadLimited-InvescoGreatWallEmerging 10,303,601 Com(inmRonMsBh)are 10,303,601
Note ontheassociationrelationshiporconcertedactionbetweentop10 WAmuloiannggtyheeGtorpou1p0Cshoa.,rLethdo.ldisearswohfothllye-oCwonmepdasnuy,bSsiidcihauryanofYibin
suhnarereshtroicldteedrspaunbdlictospha1r0ehsohladreerhso,ladnedrsbetweentop10unrestrictedpublic YwihbeinthSetraoteth-oewrpnuebdliAcsssheatsreOhopledreartsiohnaCveo.a,nLytda.,sasnodciaittiisonunclear
relationshiporactinginconcert.
shareWhhoeldtheersr atghreeedCoomn paarneyp’usrcthoapse1t0rancsoamctmioonndusrihnagrethheolrdeeprosrtianngdpetroiopd 10 unrestricted common
T□hYeeCs o√mNpoany’s top 10 common shareholders and top 10 unrestricted common shareholders did not
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
agree on a repurchase transaction during the reporting period.
2. Controlling shareholders of the Company
TNyaptuereofocfocnotnrotrlloinllgingshsahraerheohldoeldre: rle: gloaclaplesrtsaoten-owned
Nameofcontrollingshareholder repreLseegnataltive/ Dateofestablishment Organizationcode Primarybusiness
headofunit
YibinState-OwnedAssetsOperation Coappeitraaltioopnewraitthioinntahnedsacsospeets
Co.,Ltd. HanCheng August04,1999 915115007118234259 aGutohvoerriznemdebnytothfeYiPbeinoCpliety's
EqluisitteydofcoomthpearndioemsecsotnictroalnleddfoarnedignYibinState-OwnedAssetsOperationCo.,Ltd.directlyholds131,847,574sharesofYibinTianyuan
shapreahrtoicldipearteddurbinygctohnetrroelplinogrtingGLtrdo.u,tpakCion.g,Lutpd4.,4t.a8k7in%g.up16.88%;indirectlyholds56,691,800sharesofYibinPaperIndustryCo.,
period
□ChAapnpgliecaobfleco√ntNrooltlinagppslhicaarbelheolder during the reporting period
There was no change in controlling shareholder of the Company during the reporting period.2. Actual controller of the Company and person acting in concert
NTyaptuereofoafcatuctaulaclocnotnrotrlloelrle: rle: gloaclaplesrtsaoten-owned assets administration
Name ofactualcontroller rehpereaLsdeeognfataultnivite/Dateofestablishment Orgacnoidzeation Primarybusiness
SAtadtme-inoiwstnraetdioAnsCseotmsmSuispseiorvnisoiofnYiabnindYingYuanjun February24,2005 Notapplicable Notapplicable
Municipal Government
lEisqteuditycoomfoptahneiredsocmonetsrtoiclleadndbyfoarcetiuganl5Y6ib,6in9S1,t8a0te0-oswhanreedsAosfsYeibtsinSPuappeervrisIniodnusatnrydCAod.m,Lintids.t,ratatikoinngCuopm4m4i.s8s7io%n;dinirdeicretlcytlhyohldoslds
controllerduringthereportingperiod 131,847,574sharesofYibinTianyuanGroupCo.,Ltd.,takingup16.88%.
□ChAapnpgliecaobfleac√tuNaol tcoanptprloicllaebr ldeuring the reporting period
BThloecrkedwiaagsrnamo cohfaenqgueitiynaancdtucaolnctoronltrroelllaetrioonfsthhiepCboemtwpeaennytdheurCinogmthpeanreypaonrtdinagcptuearliocdo.ntroller:
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
StatCeo-omwmniesdsiAonssoeftsYSibuipnerMviusnioicnipaanldGAodvmerinnmisternattion
100%
Yibin State-Owned Assets Operation Co., Ltd.
100%
35.21%
Sichuan YibinWuliangyeGroupCo.,Ltd.
19.63%
Wuliangye Yibin Co., Ltd.
□ThAepapclictuaablleco√nNtrooltlearpcpolinctarbolles the Company through trust or other asset management methods4. Other legal person shareholders holding more than 10%
√ Applicable □ Not applicable
Nameoflegalpersonshareholder repreLseegnataltive/ Dateofestablishment Registeredcapital Primarybusinessormanagement
head ofunit (RMB) activities
Sichuan YibinWLutlida.ngyeGroupCo., LiShuguang August12,1998 1,000,000,000 meInnatvenerapsgrteimsmeeenmntta,naagsaesnmedtesntmsaeinnrvavigeceesmtmeennt,t
o5.theRr ecsotmricmteitdmesnhtamreakreedrsuction of controlling shareholder, actual controller, reorganizer and
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section VII Preferred Share
□ThAepCploicmapblaen√y Nhaodt anpopplirceafbelrered shares during the reporting period.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section VIII Convertible Corporate Bonds
□ThAepCploicmapblaen√y Nhaodt anpopcliocnavbelertible bonds during the reporting period.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section IX Directors, Supervisors, Senior Management and Employees
I. Changes in shareholdings of directors, supervisors, and Senior management
sNhuamrebsehreoldfInnucmrebaesreoinfiDnencurmeabseerOther Numberof
Name Position SsteartuvisceofGender Age appDoaitnetmofentDtoahteolcdeoafsfiicnegbegaintnthinegof shinacreusrrheneltdocfhuserhlrdaerinnetsdineccrreeaassee/asthtahreesenhdelodf
th(eshpaerreio)d(psehraiored)(psehraiored)(share) th(eshpaerreio)d
CoZnegnqginDeCpPuCty,SPerecrseidtaernytofIncumbent Male 51 Septe2m01b9er27, Tillnow
ShugLuiang SecreDtairreycotofrCPC,Incumbent Male 57 April21,2017 Tillnow
Deputy Secretaryof
ChenLin CPC,Director,GeneralManager,Chief Incumbent Female 59 July18,2014 Tillnow 98,191 98,191
Engineer
Member ofCPC,
ZouTao Director,ExecutiveDeputyGeneral Incumbent Male 41 July21,2018 Tillnow
Manager
WJieanngge MemDbierercotfoCrPC, Incumbent Male 53 May10,2019 Tillnow
NanFpuingIndependentDirector Incumbent Male 58 July18,2014 Tillnow
YZohuosuuIndependentDirector Incumbent Male 67 June22,2016 Tillnow
SheGnagndaoIndependentDirector Incumbent Male 53 Nove2m01b6er18, Tillnow
Yang CMheamirmbearnooffCLPabCo,r
Yunxia UniSonu,pEermvipslooryeeIncumbent Female 48 July18,2014 Tillnow
ShRimening Supervisor Incumbent Male 54 July18,2014 Tillnow
QiuPing Supervisor Incumbent Female 55 July18,2014 Tillnow 2,000 2,000
GuWopuingEmployeeSupervisor Incumbent Male 50 June09,2015 Tillnow
ZhZohnugyu MDeempMubateynrGaogefenCrePraCl,Incumbent Male 56 July18,2014 Tillnow 11,501 11,501
BToacnhgao MDeempMubateynrGaogefenCrePraCl,Incumbent Male 55 July18,2014 Tillnow 20,000 20,000
ShTeannggyunMDeempMubateynrGaogefenCrePraCl,Incumbent Male 57 July18,2014 Tillnow 9,100 9,100
Member ofCPC,
LuoWei DeputyGeneralManager,Chief Incumbent Male 55 July18,2014 Tillnow
Financial Officer
Zhao MDeempubteyrGoefnCePraCl,
Dong ManageErn,gDineepeurtyChief Incumbent Male 55 July21,2018 Tillnow
Total -- -- -- -- -- -- 140,792 140,792
II. Change of directors, supervisors and senior management of the Company
√ Applicable □ Not applicable
Name Position Type Date Reason
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Liu DeputySecretaryof Retired September27,2019 Retiredasdirectorofthe5thboardofdirectorsandZhongguoCPC,President Presidentduetoreachingthemandatoryageforretirement
Zeng DeputySecretaryof AppointmentandSeptember27,2019 NewpresidentasappointedbyhigherorganizationandCongqinCPC,President dismission appointedanddismissedbythegeneralmeeting
Member ofCPC, Appointment TakethepositionofDirectorasappointedbyhigherJiangWenge Director and May10,2019 organizationandappointedanddismissedbythegeneraldismissionmeeting
ZhangHui Director Dismissed May10,2019 DismissedfromthepositionofDirectorbythegeneralmeeting
Remark: 1. In September of 2019, Mr. Fu Nanping applied for resigning as Independent Director ofthe 5th board of directors of the Company. The resignation application would become effective after thegeneral meeting of the Company elects the new independent director. On October 16, 2019, the boardof directors of the Company nominated Mr. Han Cheng as the candidate for director of the 5th board ofdirectors of the Company, which had to be submitted to the general meeting for consideration.
2. On October 16, 2019, the board of directors of the Company nominated Ms. Liu Feng and Ms.Yang Ling as the candidate for supervisor of the 5th board of supervisors of the Company and Mr. RenShiming and Ms. Qiu Ping resigned as supervisors, which had to be submitted to the general meeting forconsideration.
III. Service status
Professional background, main work experience and main responsibilities currently in the Companyof current directors, supervisors and senior management of the Company
1. Mr. Zeng Congqin, doctoral candidate. He began to work in July 1988 and successively servedin Changning County of Yibin, municipal authorities, and Cuiping District. He once served as a memberof the Standing Committee, Director of the Propaganda Department, and Executive Deputy County Chiefof Changning County, Director of the Development Planning and Investment Service Bureau of YibinLingang Economic Development Zone, Secretary of the Party Leadership Group and Director of YibinMunicipal Development and Reform Commission and Director of Municipal Price Bureau, Director ofYibin Municipal Bureau of Energy, and Secretary of Cuiping District Committee. At present, he serves asthe Deputy Secretary of CPC and President of the Company, Deputy Secretary of CPC, Director, andGeneral Manager of the Group Company, and Secretary of the Party Working Committee of YibinLingang National Economic and Technical Development Zone.
2. Mr. Li Shuguang, bachelor degree, senior economist. He began to work in July 1983 and onceserved the Sichuan Provincial Machinery Industry Department, Sichuan Provincial Planned EconomyCommittee, Sichuan Provincial Economic Commission, Sichuan Provincial Economic and TradeCommission, Sichuan Provincial Economic Commission, and Sichuan Provincial Economic andInformation Commission. He once served as Assistant Mayor of Luzhou People's Government,
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Chairman of Board of Supervisors of State-owned Enterprises of Sichuan Provincial Government, Chief
Economist of Sichuan Provincial Economic and Information Commission, Deputy Secretary of the
Leading Party Group and Deputy Director of Sichuan Provincial Economic and Information Commission.
At present, he serves as the Secretary of CPC and Director of the Company, and Secretary of CPC and
President of the Group Company.
3. Ms. Chen Lin, bachelor degree, professor level senior engineer, senior technician, seniorsommelier, senior winemaker, China Liquor Brewing Master, and China Liquor Master. She began towork in Wuliangye Liquor Factory in March 1980, served as the Secretary of Party Branch and Directorof the Mellow Blending Workshop of Yibin Wuliangye Liquor Factory since December 1992, served asDeputy General Manager of the Company since April 1998, and served as Member of CPC and Directorof the Group Company, and the Director, General Manager, and Chief Engineer of the Company sinceApril 2004. She now serves as the Deputy Secretary of CPC, Director, General Manager, and ChiefEngineer of the Company, Member of CPC and Director of the Group Company, and Director andGeneral Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
4. Mr. Zou Tao, master degree. He began to work in July 2004 and once served the EconomicInvestigation Department of Sichuan Provincial Public Security Department, Sichuan ProvincialDiscipline Inspection Commission, and Sichuan Provincial Department of Supervision. He once servedas the Deputy Director of No. 4 Office of Discipline Inspection and Supervision and Director of the No.2Office of Discipline Inspection and Supervision of Sichuan Provincial Discipline Inspection Commission.In January 2017, he served as the Deputy Secretary of CPC of the Group Company. He now serves asMember of CPC, Director, and Executive Deputy General Manager of the Company, and Member ofCPC and Vice President of the Group Company, and concurrently as President of Wuliang NongXiangSeries Baijiu Yibin Co., Ltd.
5. Mr. Jiang Wenge, master degree. He began to work in August 1985 and successively served inPeng'an County and Shunqing District of Nanchong City, Sichuan, and Sichuan Provincial Developmentand Reform Commission, and Welfare-to-work Office of Sichuan Province. He once served as DeputyHead of Shunqing District Government, Deputy Director of Employment and Income Distribution Office,Deputy Director of Division of Rural Economy, and Director of Division of Rural Economy of SichuanProvincial Development and Reform Commission, and the Deputy Director and Primary Investigator ofWelfare-to-work Office of Sichuan Province. He now serves as Member of CPC and Director of theCompany, and Member of CPC, Director and Deputy General Manager of the Group Company.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
6. Mr. Fu Nanping, doctoral candidate. He began to work in September 1985 and once served theOffice of Science and Technology of Nanchang Aircraft Manufacturing Company, and successivelyserved as Deputy Manager of Issuance Department of SDIC Securities Co., Ltd (Guosen Securities),Deputy General Manager of Investment Bank Headquarter, Junan Securities Co., Ltd., General Managerof Investment Bank Department II, Deputy Director of Corporate Financing Headquarter, and DeputyGeneral Manager of Shenzhen Headquarter of Guotai Junan Securities Co., Ltd. He now serves as theBusiness Inspector and Supervisor of Guotai Junan Securities Co., Ltd. and Independent Director of theCompany.
7. Mr. Zhou Yousu, bachelor degree, professor. He began to work in July 1983 and once servedSichuan Academy of Social Sciences and Meigu County Committee of Sichuan Province. He nowserves as researcher and professor of Sichuan Academy of Social Sciences and Independent Director ofthe Company.
8. Mr. Gan Shengdao, doctoral candidate. He has been working on the teaching and scientificresearch of financial management and accounting at Sichuan University since July 1990. He now servesas professor, doctoral supervisor, post-doctoral co-supervisor in accounting of Business School, SichuanUniversity, independent director of the Company, independent director of Changhong Meiling Co., Ltd.,independent director of Sichuan Yahua Industrial Group Co., Ltd., independent director of SinosealHolding Co., Ltd., independent director of Chengdu XGimi Technology Co., Ltd., independent director ofRML Technology Co., Ltd., and outside director of Sichuan Huashi Group Ltd.
9. Ms. Yang Yunxia, bachelor degree, senior political analyst. She began to work in WuliangyeLiquor Factory in July 1991, served as middle management since August 2003, and served as Directorof the Mass Work Department and Director of the Women's Working Committee of the Company in July2015. She served as Member of CPC and Chairman of the Labor Union of the Company in June 2018.She now serves as Member of CPC, Chairman of the Labor Union, and Employee Supervisor of theCompany, and concurrently as Director of the Mass Work Department.
10. Mr. Ren Shiming, bachelor degree, senior accountant, and senior international financemanager (SIFM). He began to work in July 1989 and successively served as Chief Accountant of theFinance Office of Sichuan Automobile Factory, Chief Accountant of Chongqing Hongyan AutomobileTransmission Shaft Factory, Chief Accountant and Deputy Chief of the Finance Section of YibinInvestment Co., Ltd., Chief of the Finance Section, Director of Finance Department, and Director ofInvestment Department of Yibin State-Owned Assets Operation Co., Ltd. He now serves as Director and
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Employee Supervisor of the Professional Committee Office of Yibin State-Owned Assets Operation Co.,
Ltd. and Supervisor of the Company.
11. Ms. Qiu Ping, college degree, Chinese Certified Public Accountant. She successively served asDeputy Chief of the Enterprise Section of Yibin Municipal Bureau of Finance, Deputy General Managerof Yibin Investment Group Company Urban Investment Company, Director of Yibin Assets and EquityExchange, Director of Financing Department and Director of Finance Department of Yibin State-OwnedAssets Operation Co., Ltd. She now serves as the Assistant of General Manager of Yibin State-OwnedAssets Operation Co., Ltd. and Supervisor of the Company.
12. Mr. Wu Guoping, bachelor degree, auditor and senior sourcer. He began to work in August1989 and once served Yibin City Bureau of Audit, transferred to the Company and served as DeputyDirector of the Audit Department in May 2015, Employee Supervisor of the Company in June 2015, andDeputy Director of the Audit Supervision Department in July 2015. He now serves as EmployeeSupervisor of the Company and Deputy Director of the Audit Supervision Department.
13. Mr. Zhu Zhongyu, master degree, senior salesman, economist, and political analyst. He beganto work in Wuliangye Liquor Factory in August 1985, and served as Deputy General Manager of theCompany since April 2003. He now serves as Member of CPC and Deputy General Manager of theCompany, and concurrently as President of Wuliangye Xianlin Ecological Liquor Co., Ltd. and ExecutiveDeputy General Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
14. Mr. Tang Bochao, master degree, senior economist. He began to serve in Mengzi MilitarySub-command of People's Liberation Army of China since October 1983, and began to work inWuliangye Liquor Factor in March 1987 and served as Member of CPC and Deputy General Manager ofthe Company since August 2012. He now serves as Member of CPC and Deputy General Manager ofthe Company.
15. Mr. Tang Shengyun, master degree, professor level senior engineer and China Liquor BrewingMaster. He began to work in Wuliangye Liquor Factory in July 1987, and served as Member of CPC andDeputy General Manager of the Company since August 2012. He now serves as Member of CPC andDeputy General Manager of the Company.
16. Mr. Luo Wei, master degree. He began to work in July 1986 and once served Yibin MunicipalBureau of Finance, Yibin Municipal Auditing Bureau, Yibin Investment Group Co., Ltd., and Yibin AirportCo., Ltd. He served as Member of CPC, Deputy General Manager, and Chief Financial Officer of theCompany in February 2014. He now serves as Member of CPC, Deputy General Manager, and Chief
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Financial Officer of the Company.
17. Mr. Zhao Dong, bachelor degree, professor level senior engineer. He began to work in August1986 and once served Sichuan Light Industry School. He began to work in Wuliangye Liquor Factory inMay 1989, and served as Director of the Research Center of the Company in November 2012. Heserved as Member of CPC and Deputy Chief Engineer of the Company in July 2017, and DeputyGeneral Manager of the Company in June 2018. He now serves as Member of CPC, Deputy GeneralManager, and Deputy Chief Engineer of the Company.
S√eArpvpicliecasbtaletu□s Ninotthaepsphliacraebhleolder's unit
Date Whethertoreceive
Nameofstaff Nameofshareholder'sunit Positioninshareholder's Dateof ceasingunitappointment tohold remunerationor
office allowanceintheshareholder'sunit
LiShuguang SichuanYibinWuliangyeGroup SecretaryofCPC,Co.,Ltd. President No
Zeng Congqin SichuanYibinWuliangyeGroup MemberofCPC,Director,Co.,Ltd. GeneralManager No
Chen Lin SichuanYibinWuliangyeGroupCo.,Ltd. MemberofCPC,Director No
ZouTao SichuanYibinWuliangyeGroup MemberofCPC,ViceCo.,Ltd. President Yes
JiangWenge SichuanYibinWuliangyeGroup MemberofCPC,Director,Co.,Ltd. DeputyGeneralManager No
RenShiming YibiOnpSetarateti-oOnwCnoe.d,LAtdss.ets DEirmCecoptmloorymeoifettPeSeruoOpfeefsfrisvciieos,onralYes
Qiu Ping YibinState-OwnedAssets AssistantofGeneralOperationCo.,Ltd. Manager Yes
S√eArpvpicliecasbtaletu□s Ninoottahpepr luicnaitbsle
Date Whetherto
Nameofstaff Nameofotherunit Positioninotherunit appDoaitnetmofentctoeahsoinldgremurenceeraivtieonor
office allowanceinotherunits
FuNanping GuotaiJunanSecuritiesCo.,Ltd. BusinessInspectorandSupervisor Yes
Zhou Yousu SichuanAcademyofSocialSciences Researcher,professor Yes
Prsoufpeessrvoirs,odr,ocatnodral
SichuanUniversity cop-ossutp-deorvcitsoorarlin
accounting
SheGnagndaoYCahhaunaghInodnugsMtrieailliGngroCuop.,CLot.d,.L,tSdi.c,huan Yes
SXGinoimsieTaelcHhonldoilnoggyCCoo.,.,LLtdtd.,.,CahnedngRdMuLIndependentDirector
TechnologyCo.,Ltd.
Sichuan HuashiGroupLtd. OutsideDirector
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Chen Lin YibinWuliangyeLiquorSalesCo.,Ltd. Director,GeneralManager No
ZouTao WuliangNongXiangSeriesBaijiuYibinCo.,Ltd. President No
TangBochao OrientalOutlookMediaCo.,Ltd. VicePresident No
LuoWei SichuanYibinWuliangyeGroupFinanceCo.,Ltd. President No
YibinWuliLainqguyoerCXoia.,nLlintdE.cological President No
ZhuZhongyu
Yibin WuliangyeLiquorSalesCo.,Ltd. ExecutiveDeputyGeneralManager No
resigPnuendisdhumrinegntthaegareinpsotrctiunrgrepnetrdioirdebctyosrse,csuuriptieersvirseogruslaatnodrsoifnficreercseonft tthhereCeoymeaprasny and those who
□ Applicable √ Not applicableIV. Remuneration of directors, supervisors and senior managementsupeDrveiscoisrisona-nmdaskeinngiopr rmocaendaugreems,ednet.termination basis and actual payment of remuneration of directors,
1. Decision-making proceduresaccoTrdhiengCtoomrepleavnaynht asdysftoermmsualantdedprtohveisrioenmsuonfesrautpioenriodrisdteripbaurttimonenstcshaenmdethfeorCoofmficpearnsy,owf thhicehCwoomupldabneyrbeopaorrdteodf dtoirethcetorresmouf ntheeraCtioomn pcoamnymfoittreaepopfrothvealbboeafrodreofimdpirleecmtoernstafotiroanp. proval, and then submitted to the
2. Determination basisbaseTdhoen Cevoamlupaatnioyndaectceorrmdiinnegdtoreremleuvnaenrtastiyosnteomfsthaenddpirreocvtiosriosn, ss.upervisors and senior management
3. Actual payment of remunerationthe yPeaarr.t of the basic remuneration was paid monthly and part of the performance pay was paid withinreportRinegmpuenrieordation of directors, supervisors and senior management of the Company during the
Unit: RMB ’0,000
NamePosition Gender Age SsteartvuisceofrreecmeuiTvnoeetdaralfrtioomnWrpferahmoremttuiehnsereerorlatafottteihogdenet
the Company Company
Zeng Congqin President Male 51 Incumbent No
LiShuguang Director Male 57 Incumbent 73.29 No
ChenLin Director Female 59 Incumbent 74 No
Zou Tao Director Male 41 Incumbent Yes
Jiang Wenge Director Male 53 Incumbent 44.05 No
FuNanping IndependentDirector Male 58 Incumbent 10 No
ZhouYousu IndependentDirector Male 67 Incumbent 10 No
GanShengdao IndependentDirector Male 53 Incumbent 10 No
YangYunxia EmployeeSupervisor Female 48 Incumbent 66.22 No
RenShiming Supervisor Male 54 Incumbent Yes
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Qiu Ping Supervisor Male 55 Incumbent Yes
WuGuoping EmployeeSupervisor Male 50 Incumbent 46.23 No
Zhu Zhongyu DeputyGeneralManager Male 56 Incumbent 66.56 No
Tang Bochao DeputyGeneralManager Male 55 Incumbent 67.01 No
TangShengyun DeputyGeneralManager Male 57 Incumbent 66.81 No
Luo Wei DeputyGeneralManager,ChiefFinancialOfficer Male 55 Incumbent 66.26 No
Zhao Dong DeputyGeneralManager,DeputyChiefEngineer Male 55 Incumbent 68.56 No
Liu Zhongguo FormerPresident Male 64 Resigned 75.13 No
Total 744.12
Remarks: 1. The above-mentioned persons (except for the independent directors) received part of
the annual performance pay of 2018; Allowances received by the independent directors were
tax-inclusive.
2. Due to the good performance in 2017-2018, the superiors paid one-off non-wage bonus to relevant
senior management of the Company.
perioEdquity incentive granted to directors and officers of the Company during the reporting
□ Applicable √ Not applicableV. Company employees
1. Number, professional composition and educational background of employees
Number ofemployeesintheparentcompany(person) 17,896
Number ofemployeesinmainsubsidiaries(person) 8,452
Total employees(person) 26,348
(Tpoetarsloenm)ployeesreceivingsalaryinthecurrentperiod 26,348
Nbourmnebebryotfhreeptiraerdenetmcpomloypeaensywanhdosmeaeinxpseunbsseidsianreieesdtobe 82
(person)
Professional composition
Category ofprofessionalcomposition Numberofprofessionals(person)
Productionpersonnel 19,185
Marketing personnel 1,150
Technician 4,943
Financialpersonnel 158
Administrativepersonnel 912
Total 26,348
Educationalbackground
Category ofeducationbackground Number(person)
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Collegeandabove 4,738
Senior highschooltocollege 14,746
Middleschoolandbelow 6,864
Total 26,348
2. Remuneration policy
The Company strictly abides by the provisions of relevant national laws and regulations andcomplies with the scheme of operation benefit linked up with performance and relevant remunerationmanagement system of the Company.
3. Training plan
In 2020, training work of the Company will center on the strategic layout of "Reform, Innovation,Transformation, and Development" and focus on construction of the talent team to strengthen thefoundation of innovation and development. The Company will carry out hierarchical and classifiedtrainings with rich contents and by flexible means based on the demand of the Company for reform anddevelopment and the demands of employees for diversified trainings, enhancing the planning,pertinency and effectiveness of educational training. The Company plans to carry out 12 “WuliangyeLectures”, 121 professional trainings at company level, 335 professional trainings at workshop anddepartment level, 97 external trainings, and 66 skill trainings to provide strong human resourcesguarantee for the reform and innovation of the Company, so as to effectively match up with and promotestrategic improvement of the Company and achievement of the annual operation objectives.
4. Labor outsourcing
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section X Corporate Governance
I. Basic information of corporate governance
The Company, being dedicated to the construction and improvement of the corporate governancestructure, has established, and will continue to revise and improve relevant rules and regulations in strictaccordance with the Company Law, Securities Law, Governance Guidelines for Listed Companies, andother laws and regulations. The Company has established relevant rules and regulations for the generalmeeting, the board of directors and the board of supervisors to ensure that they will exercise thediscretion, decision-making right, and right of supervision. The board of directors of the Company hasset up five special committees: strategic committee, remuneration and appraisal committee, nominationcommittee, audit committee, and comprehensive budget management committee, which effectivelypromoted the standardized operation of the board of directors.
During the reporting period, the Company revised the Articles of Association, Procedure Rules ofthe Board of Directors, Procedure Rules of Board of Supervisors and Procedure Rules of the GeneralMeeting, further improving the Company's management system.
Whether there is any significant difference between the actual situation of corporate governanceand the normative documents on governance of the listed company issued by China SecuritiesRegulatory Commission
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and thenormative documents on listed corporate governance issued by China Securities RegulatoryCommission.
bII.usIinndesesp,epnedresnocneneolf, athseseCtso,moprgaannyizfarotimoniatsndcofinntarnoclleing shareholders in respect of
The Company was 50-50 separated from the controlling shareholders in respect of business,personnel, assets, organization and finance, and had independent and complete production andoperation system and independent operation capability.
In respect of business, the Company owned independent production and operation system,auxiliary production system and corresponding supporting facilities, and had the ability to makedecisions about operating activities independently.
In respect of personnel, the Company carried out independent management on labor, personneland salary matters.
In respect of assets, the Company had ownership and right of control over its assets, and the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
controlling shareholders did not occupy the assets or funds of the Company.
In respect of organization, the Company had independent main production and operationmanagement organization and system.
In respect of finance, the Company owned independent financial department, establishedindependent accounting system and financial management system, and opened independent bankaccount.
III. Peer competition
□ Applicable √ Not applicableIdVu.riNnogtteheonrepthoertianngnpuearliogdeneral meeting and extraordinary general meeting held1. General meeting during the reporting period
Meeting session Meetingtype PaIrntviceipsatotironCondvaeteningDisclosuredate Disclosureindex
proportion
Annual Ge2n0e1r8alMeeting Annmuaelegtienngeral71.25% May10,2019 May11,2019
CNINFO
First ExMtreaeotrindgina2r0y1G9eneral Extmgraeeoneretdirnianglary64.94% Septe2m01b9er27, Septe2m01b9er28, (http://www.cninfo.com.cn)
v2.otinEgxtrriagohrtdsirneasrtyorgeedneral meeting convened at the request of preferred shareholders with
□ Applicable √ Not applicableV. Performance of duties by independent directors during the reporting period1. Attendance of board meeting and general meeting by independent directors
Attendanceofboardmeetingandgeneralmeetingbyindependentdirectors
Nameof mNeubemotibanergdrsotofNubmobaerdrof Numberof Nubmobaerdrof WtoahpteteetrhnsedornthfaaelillysNumberof
inddeirpeecntodrentbdeuaritntegntdheedatmteenedteindgosnboaatrtednmdeedetbinygsmeetings Nmuemetbinegrsofabboseanrdtboardmeeting mgeeenteinragls
reppeorriotidng site correspondence dtoeleagttaetnedd confotsimretcewusotiveattended
Fu Nanping 20 2 18 0 0 No 1
Zhou Yousu 20 2 18 0 0 No 2
GanShengdao 20 2 18 0 0 No 2
2. Objections made by independent directors on relevant matters of the Company
W□ Yheesth√erNtohe independent directors make objections on relevant matters of the CompanyreporTtihneg ipnedreiopde.ndent directors made no objections on relevant matters of the Company during the3. Other note on the performance of duties by the independent directors
W√ Yheesth□erNroelevant suggestions of the independent directors on the Company are adopted
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Note on adoption or non-adoption of relevant suggestions of the independent directors on theCompany
During the reporting period, the independent directors of the Company performed their dutiesindependently in strict accordance with relevant laws, regulations and the Articles of Association, putforwarded professional opinions or suggestions on operating decision of the Company, issuedindependent opinions on matters of the Company which needed the opinions of independent directorsduring the reporting period, and played its due role in safeguarding legal rights interests of the Companyand all shareholders.
tVhI.e Preeproforrtimnganpceerioofdduties by special committees under the board of directors during
The board of directors of the Company has set up five special committees: strategic committee,remuneration and appraisal committee, nomination committee, audit committee, and comprehensivebudget management committee.
(I) Performance of duties by the strategic committee
During the reporting period, the strategic committee of the Company convened three meetingsaccording to relevant requirements of the Implementation Rules for Strategic Committee of the Company,studying the "13th Five-year" strategic development of the Company, implementation of the strategy forthe first half of the year and economic performance of the Company, and preliminary work of the "14thFive-year" plan of the Company.
(II) Performance of duties by the audit committee
During the reporting period, the audit committee was diligent and responsible in performing theresponsibilities required by the system: 1. Review the Company's 1st quarter report of 2019,semi-annual report of 2019, and the 3rd quarter report of 2019 and form resolutions; 2. Review theCompany's renewal of employment of the accounting firm in 2019 and the audit fee, and form resolutions;3. Determine the timing of audit of the financial and accounting statements 2019 through consultationwith the accounting firm responsible for annual audit of the Company; 4. Communicate with theaccounting firm and independent directors before entry of the auditor of the Annual Report 2019; 5.Review, for the first time, the summary financial and accounting statements of 2019 preliminarilyprepared by the Department of Finance of the Company before entry of the CPAs for the annual audit,and provide written comments; 6. After entry of the CPA for annual audit, the audit committee and theCPAs for annual audit communicated about problems found during the audit and the time for submittingthe audit report; 7. The audit committee further reviewed the Company's financial and accountingstatements 2019 and form resolutions after the CPAs for the annual audit issued the preliminary audit
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
opinions.
(III) Performance of duties by the nomination committee
The nomination committee convened two meetings during the reporting period according to relevantprovisions of the Implementation Rules for Nomination Committee of the Company. Mr. Zeng Congqinwas nominated as the candidate for director and president of the 5th board of directors of the Companyat the first meeting; the proposal of nominating Mr. Han Cheng as the candidate for director of the 5thboard of directors of the Company was approved at the second meeting.
(IV) Performance of duties by the remuneration and appraisal committee
The remuneration and appraisal committee, according to relevant provisions of the ImplementationRules for Remuneration and Appraisal Committee of the Company, issued audit opinion on theremuneration payment of officers of the Company in 2019 during the reporting period.
(V) Performance of duties by the comprehensive budget management committee.
The committee, according to relevant provisions of the Implementation Rules for ComprehensiveBudget Management Committee of the Company, Serious performance of dutiesreviewed and approvedthe Annual Budget Scheme 2019 and the Comprehensive Budget Adjustment Scheme 2019 during thereporting period.
VII. Work of the board of supervisors
the reWphoerttihnegrptheeriobdoard of supervisors find any risk of the Company in the supervision activities during
T□hYeebso√aNrdoof supervisors has no objection to the supervisory matters during the reporting period.VIII. Appraisal and incentive of senior managementdetaiRlse. fer to "Section IX, IV. Remuneration of directors, supervisors and officers" of the Report forIX. Internal control
1. Details of major internal control defects found during the reporting period
□ Yes √ No2. Self-evaluation report on internal control
Disclosure dateofinternalcontrolevaluationreport(fulltext) April28,2020
Disclosure indexofinternalcontrolevaluationreport(fulltext) CNINFO(http://www.cninfo.com.cn)
ePvroapluoarttiioonnsocfothpeettootathleastosteatlsaosfstehtesoufntithienccloundseodlidinattehdefinancial 100%
statement oftheCompany
Pevroapluoarttiioonnsocfooppeertaotitnhgeroepveernautiengofrethveenuuneitoinfctlhuedecdoninsotlhideated 100%
financial statementoftheCompany
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Defectidentificationstandard
Category Financialreport Non-financialreport
1.Majordefects:(1)Inviolationof
nationallaws,regulations,ornormative
documents.(2)Unscientificenterprise
1. Majordefects:(1)Correctionbythe decision-makingprocedure,suchas
Company ofthefinancialstatementswhich wrongdecision,whichcausesfailureof
have beenpublished.(2)Materials majortransactions.(3)Lossof
misstatements foundbytheexternalauditor managementpersonnelortechnicianof
in currentfinancialstatementswhichhavenot importantposts.(4)Lackofinstitutional
been identified.(3)Corruptpracticeof controlorsystematicfailureofthe
directors, supervisors,andofficersfoundby institutionforimportantbusinesses,and
the externalauditor.(4)Ineffective existencebutineffectiveoperationof
supervision ofinternalcontrolbythe institutionalguidanceforinternalcontrol
Company’s internalauditdepartment.(5) ofimportanteconomicbusiness.(5)
Major defectspreviouslyfoundbutwerenot Failuretocorrectmajordefectwithina
Qualitative standard correctedwithinareasonableperiodorwere reasonableperiod.
ineffectively corrected.2.Importantdefects: 2.Importantdefect:(1)Propertylossnot
(1) Failuretoselectandapplyaccounting reachingorexceedingthelevelof
policies inaccordancewithgenerally materialitybutshouldbenoticedbythe
accepted accountingprinciples;(2)Failureto boardofdirectorsandthemanagement
effectively controlirregular(non-repeating)or innature.(2)Individualeventscriticized
complicated transactions.(3)Failureto bygovernmentdepartments,causing
effectively controltheanti-corruptwork.(4) moderatenegativeinfluenceon
Ineffective internalcontroloverthefinancial reputationoftheCompany.(3)Violation
report attheendoftheperiod.3.Common ofinternalrulesandregulationsofthe
defects: Defectsotherthanmajordefectsand enterpriseandcausinglosses.(4)Defect
important defectsarerecognizedascommon inimportantbusinessmechanismor
defects. system.
3.Commondefects:Otherdefectsin
internalcontrolotherthanmajordefects
andimportantdefects.
1. Majordefects:Misstatementamount>3% 1.Majordefects:Proportionoflosstonet
of totaloperatingrevenue;misstatement profit≥5%.2.Importantdefects:3%≤
Quantitativestandard amount>10%ofnetprofit;misstatement proportionoflosstonetprofit<5%.3.
amount >3%oftotalassets.2.Important Commondefects:Proportionoflossto
defects: 1%oftotaloperatingrevenue< netprofit<3%.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
misstatement amount≤3%oftotaloperating
revenue; 5%ofnetprofit
amount ≤10%ofnetprofit;1%oftotalassets
< misstatementamount≤3%oftotalassets.
3. Commondefects:Misstatementamount
≤1% oftotaloperatingrevenue;misstatement
amount ≤5%ofnetprofit;misstatement
amount ≤1%oftotalassets.
Nufimnabnecriaolfrmepaojortrsd(epfieecctes)in 0
nNounm-fibnearnocfiamlraejoprodrtesfe(pcitescien) 0
Numfibnearncoifailmreppoortratsnt(pdieefceec)tsin 0
Nnuomnb-feinraonfcimiaplorertpaonrttsde(pfeiecctse)in 0
X. Internal control audit report
√ Applicable □ Not applicable
Audit opinionparagraphsintheinternalcontrolauditreport
rSeipchourtaonnHaullasxiignn(ifGicraonutpa)sCpPeAct(sLiLnPa)cbceolriedvaenscethwaitththteheCoBmaspiacnCyrimteariiantoafinEendteerfpfericsteiveInitnetrenranlaCloconntrtorolalonvderretlheevafnintancial
provisions asofDecember31,2019.
Disclosure ofinternalcontrolauditreport Disclosed
Dteixstc)losuredateofinternalcontrolauditreport(full April28,2020
tDeixstc)losureindexofinternalcontrolauditreport(full RefertoCNINFO(http://www.cninfo.com.cn)fordetails
Type ofopinionsofinternalcontrolauditreport Standardunqualifiedopinion
Whether non-financialreporthasmajordefects No
□WYheesth√erNtohe accounting firm issues an internal control audit report with non-standard opinionthe sWelhf-eetvhaelur athtieoninrteeprnoartl cfroonmtrothl eaubdoiat rredpoofrdt ifrreocmtotrhse accounting firm is in consistent with the opinions of
√ Yes □ No
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section XI Corporate Bonds
Whether the Company has bonds publicly issued and listed on the stock exchange that have notmatured or matured but not paid in full on the date of approval of the Annual Report
No
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section XII Financial Report
I. Audit Report
Type ofauditopinion Standardunqualifiedopinion
Date ofsigningtheAuditReport April24,2020
Name ofAuditFirm SichuanHuaxin(Group)CPA(LLP)
Audit ReportNo. CHXS(2020)No.0031
Name ofCPAs LiMin,LiuJun
Audit Report (Text)
To all shareholders of Wuliangye Yibin Co., Ltd.:
I. Audit opinion
We have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to asthe Company), including the consolidated balance sheet and the balance sheet of parent company as ofDecember 31, 2019, consolidated income statement and income statement of parent company,consolidated cash flow statement and cash flow statement of parent company, consolidated statement ofchanges in owners' equity and statement of changes in owners' equity of parent company for the year2019 and notes to these financial statements.
In our opinion, the attached financial statements of the Company have been prepared inaccordance with the provisions of the Accounting Standards for Business Enterprises and give a trueand fair view of the consolidated financial position and financial position of parent company of theCompany as of December 31, 2019 and of the consolidated financial performance and cash flows andfinancial performance and cash flows of parent company for the year 2019 on all significant aspects.
II. Basis for opinion
We conducted our audit in accordance with the Auditing Standards for Chinese Certified PublicAccountants. The “Responsibility of CPAs for audit of the financial statements” in the Audit Report furtherstates our responsibility under these Standards. We are independent of the Company and fulfill otherresponsibilities in terms of professional ethics according to the Code of Professional Ethics for ChineseCPAs. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
III. Key audit matters
The key audit matters are those that we consider most important to audit the financial statements ofthe current period in our professional judgment. The response to these matters is based on the audit ofthe financial statements as a whole and the formation of audit opinion. We do not express our opinionson these matters separately. We have identified the following matters as key audit matters during theaudit:
Key audit matters Addressedinthe contextof our audit
(I) Existenceandintegrityof cash and cashequivalents
Refer tonotestofinancialstatements"V. With respect of cash and cash equivalents, we conducted the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Notes to consolidated financial followingauditprocedures:
statements, 1. Cash and cash 1. Understand, test, and evaluate key internal controls related to the
equivalents". managementofcash andcash equivalents;
As of December 31, 2019, the balance 2. Obtain list of bank accounts opened, and check the books of the
of cash and cash equivalents of the Company against the bank account information and integrity of the
Company was RMB 63,238,825,700 bank accounts;
taking up 59.44% of the total assets. 3. Obtain the bank statement and bank reconciliation for external
The safety of deposit, accuracy and confirmation of the bank accounts, and control the process of
integrity ofbalancehavegreatimpacton external confirmation;
the financial statements due to the large 4. Supervise the originals of certificate of fixed deposit, and pay
amount of balance of cash and cash attention to the holders of certificate of fixed deposit and other
equivalents and large number of bank information.
accounts, therefore we consider the 5. Obtain credit report of the enterprise and check whether the cash
existence and integrity of cash and cash and cashequivalentsareunder mortgage,charge orfrozen;
equivalents asa key auditmatter. 6. At the end of the period, the amount deposited with Sichuan Yibin
Wuliangye Group Finance Co., Ltd. was RMB 32,405,107,434.58 in
total. Check the deposit and loan businesses of Sichuan Yibin
WuliangyeGroup FinanceCo.,Ltd.
We believe that the above audit procedures can support the
management of the Company in determining the existence and
integrity ofcash andcashequivalents.
(II) Integrityof disclosureofassociationrelationshipsand relatedtransactions
Refer to notes to financial statement With respect of association relationships and related transactions,
"VIII. Related parties and related we conductedthe followingaudit procedures:
transactions". 1. Understand the procedures of the Company for related party
As ofDecember 31, 2019,the Company identification, evaluate and test the internal control of the Company
had different categories of related for identifying and disclosing association relationships and related
transactions with related parties in large transactions;
amount. There is a risk of failing to fully 2. Obtain the list of association relationships provided by the
disclosure the association relationships management,andcheckagainsttheinformationobtainedfromother
and related transactions in the notes to public channels; review the major sales, purchase, and other
financial statements due to large transactions to identify any association relationship not being
number of related parties and involving disclosed;
in various types of related transactions, 3. Obtain the amount of related transactions and details of the
therefore we consider integrity of balance provided by the management and check against the
disclosure of association relationships financialrecords;
and related transactions as a key audit 4. Sample the amount and balance of related transactions for
matter. external confirmation;
5. Obtain the resolutions of the board of directors and those of the
general meeting concerning the related transactions, and check
against the list of association relationships, amount and balance of
related transactionsprovidedbythe management;
6. Obtain statement of the management about integrity of the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
association relationshipsandrelatedtransactions;
7. Check whether the association relationship and related
transactions have been fully disclosed according to the Accounting
Standards forBusiness Enterprises.
We believe that the above audit procedures can support the
management of the Company in determining the existence and
integrityofassociationrelationshipand relatedtransactions.
IV. Other information
The management of the Company is responsible for other information. Such information includesthe information covered in the Annual Report 2019, but excluding the financial statements and our auditreport.
Our audit opinion on the financial statements does not cover other information and we do notexpress any form of verification conclusions on other information.
Combined with our audit of the financial statements, it’s our responsibility to read other information.In this process, we shall consider whether there is material inconsistency of other information with thefinancial statements or the situation understood by us in the audit process or material misstatement.
Based on the work that has been conducted by us, if we determine that other information containsmaterial misstatements, we should report the fact. We have nothing to report in this regard.
V. Responsibility of management and governance for the financial statements
The management of the Company is responsible for preparing the financial statements inaccordance with the provisions of the Accounting Standards for Business Enterprises and giving a trueand fair view; designing, implementing and maintaining necessary internal control, so that the financialstatements are free from material misstatement due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating thegoing-concern ability of the Company, disclosing the matters related to the going-concern (if applicable)and using the going-concern assumption, unless the management plans to liquidate the Company orstop operation or has no other realistic choices.
The governance is responsible for supervising the financial reporting process of the Company.
VI. Responsibility of CPAs for audit of the financial statements
Our goal is to obtain reasonable assurance as to whether there is no material misstatement causedby fraud or error in the financial statements as a whole, and to issue an audit report containing auditopinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with auditing standards will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud mayinvolve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
(4)Draw a conclusion about the appropriateness of the going-concern assumption used by themanagement. Meanwhile, draw a conclusion about the major uncertainty of the matters orcircumstances possibly resulting in major concerns about the going-concern ability of the Companyaccording to the audit evidence obtained. If we conclude that a material uncertainty exists, the auditingstandards require us to draw attention to users of the financial statements in the Audit Report to therelated disclosures in the financial statements or, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of the Audit Report.However, future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whetherthe financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.
We communicate with governance layer regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant defects in internal control thatwe identify during our audit.
We also provide the governance layer with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.
From the matters communicated with the governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter shouldnot be communicated in our report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA Chinese Certified Public Accountant: Li Min
(LLP) (Project Partner)
Chengdu, China Chinese Certified Public Accountant: Liu Jun
April 24, 2020
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
II. Financial Statements
Unit of notes to financial statements: RMB
1. Consolidated Balance Sheet
Prepared by: Wuliangye Yibin Co., Ltd. December 31, 2019 Unit: RMB
Item December31,2019 December31,2018
Current assets:
Cash andcashequivalents 63,238,825,723.79 48,960,048,897.95
Settlement reserves
Capital lent
Trading financialassets
Financial assetsatfairvaluethrough
profit orloss
Derivative financialassets
Notes receivable 14,643,149,595.72 16,134,641,950.86
Accounts receivable 134,449,693.03 127,331,336.97
Accounts receivablefinancing 3,450,166,659.06
Prepayments 231,909,140.09 220,916,820.64
Premium receivable
Reinsurance receivables
Contract reserveofreinsurance
Other receivables 1,248,644,572.40 871,770,375.85
Including: Interestreceivable 1,215,275,214.91 840,888,887.75
Dividends receivable
Purchase restitutedfinanceasset
Inventory 13,679,619,615.41 11,795,461,088.43
Contract asset
Assets heldforsale
Non-current assetsduewithinone
year
Other currentassets
Total currentassets 96,626,764,999.50 78,110,170,470.70
Non-current assets:
Loans andadvances
Debt investment
Available-for-sale financialassets 1,200,000.00
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Other debtinvestments
Held-to-maturity investment
Long-term receivables
Long-term equityinvestment 1,021,778,731.59 919,477,978.54
Other equityinstrumentinvestment
Other non-currentfinancialassets 1,200,000.00
Investment properties
Fixed assets 6,108,745,912.72 5,262,163,428.02
Construction inprogress 812,428,248.30 351,993,452.86
Productive biologicalassets
Oil andgasassets
Right-of-use assets
Intangible assets 410,155,227.81 412,650,156.71
Development expenditures
Goodwill 1,621,619.53 1,621,619.53
Long-term deferredexpenses 91,601,331.96 111,897,668.36
Deferred incometaxassets 1,157,391,979.00 871,859,716.03
Other non-currentassets 165,284,283.25 51,231,242.34
Total non-currentassets 9,770,207,334.16 7,984,095,262.39
Total assets 106,396,972,333.66 86,094,265,733.09
Current liabilities:
Short-term loans
Loan fromcentralbank
Capital borrowed
Trading financialliabilities
Financial liabilitiesatfairvalue
through profitorloss
Derivative financialliabilities
Notes payable 419,485,425.61 413,918,369.11
Accounts payable 3,257,672,975.56 3,152,374,810.72
Accounts receivedinadvance 12,530,706,854.77 6,706,735,898.48
Contract liability
Selling financialassetofrepurchase
Absorbing depositandinterbank
deposit
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Security tradingofagency
Security salesofagency
Payroll payable 3,594,886,729.81 2,769,295,510.19
Tax payable 7,939,166,588.84 5,080,135,497.74
Other payables 2,292,680,733.51 2,585,355,687.52
Including: Interestpayable
Dividend payable
Commission chargeandcommission
payable
Reinsurance payables
Liabilities heldforsale
Non-current liabilitiesduewithinone
year
Other currentliabilities
Total currentliabilities 30,034,599,308.10 20,707,815,773.76
Non-current liabilities:
Insurance contractreserve
Long-term loans
Bonds payable
Including: Preferredshare
Perpetual bond
Lease liability
Long-term payable
Long-term payrollpayable
Estimated liabilities
Deferred income 266,325,368.40 267,010,618.22
Deferred incometaxliabilities
Other non-currentliabilities
Total non-currentliabilities 266,325,368.40 267,010,618.22
Total liabilities 30,300,924,676.50 20,974,826,391.98
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equityinstruments
Including: Preferredshare
Perpetual bond
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasurystock
Other comprehensiveincome
Special reserves
Surplus reserve 16,092,197,023.01 13,120,411,030.42
Provision forgeneralrisk
Undistributed profit 51,634,248,548.06 43,802,603,958.99
Total owner'sequityattributableto 74,290,700,662.22 63,487,270,080.56
parent company
Minority equity 1,805,346,994.94 1,632,169,260.55
Total owners'equity 76,096,047,657.16 65,119,439,341.11
Total liabilitiesandowners'equity 106,396,972,333.66 86,094,265,733.09
Legal representative: Zeng Congqin Responsible person for accounting: Luo Wei Responsible person of
accounting firm: Luo Jun
2. Balance Sheet of Parent Company
Unit: RMB
Item December31,2019 December31,2018
Current assets:
Cash andcashequivalents 28,257,367,404.51 20,666,489,987.76
Trading financialassets
Financial assetsatfairvaluethrough
profit orloss
Derivative financialassets
Notes receivable
Accounts receivable
Accounts receivablefinancing
Prepayments 80,520,520.72 73,237,561.54
Other receivables 10,126,706,853.03 12,135,135,681.28
Including: Interestreceivable 570,078,014.35 383,190,672.91
Dividends receivable 654,791,389.27 342,607,430.63
Inventory
Contract asset
Assets heldforsale
Non-current assetsduewithinone
year
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Other currentassets
Total currentassets 38,464,594,778.26 32,874,863,230.58
Non-current assets:
Debt investment
Available-for-sale financialassets 1,200,000.00
Other debtinvestments
Held-to-maturity investment
Long-term receivables
Long-term equityinvestment 10,609,783,624.61 10,517,324,976.74
Other equityinstrumentinvestment
Other non-currentfinancialassets 1,200,000.00
Investment properties
Fixed assets 100,266,366.93 107,626,051.93
Construction inprogress 100,358,221.33 99,478,221.33
Productive biologicalassets
Oil andgasassets
Right-of-use assets
Intangible assets 39,222,336.12 40,573,281.24
Development expenditures
Goodwill
Long-term deferredexpenses
Deferred incometaxassets 2,202,432.10 100,889.03
Other non-currentassets
Total non-currentassets 10,853,032,981.09 10,766,303,420.27
Total assets 49,317,627,759.35 43,641,166,650.85
Current liabilities:
Short-term loans
Trading financialliabilities
Financial liabilitiesatfairvalue
through profitorloss
Derivative financialliabilities
Notes payable
Accounts payable 418,136.00 175,000.00
Accounts receivedinadvance
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Contract liability
Payroll payable 8,811,734.27 1,267,974.86
Tax payable 30,732,337.42 36,702,690.98
Other payables 285,450,874.79 332,300,571.41
Including: Interestpayable
Dividend payable
Liabilities heldforsale
Non-current liabilitiesduewithinone
year
Other currentliabilities
Total currentliabilities 325,413,082.48 370,446,237.25
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferredshare
Perpetual bond
Lease liability
Long-term payable
Long-term payrollpayable
Estimated liabilities
Deferred income 1,000,000.00
Deferred incometaxliabilities
Other non-currentliabilities
Total non-currentliabilities 1,000,000.00
Total liabilities 326,413,082.48 370,446,237.25
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equityinstruments
Including: Preferredshare
Perpetual bond
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasurystock
Other comprehensiveincome
Special reserves
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Surplus reserve 7,884,654,620.01 6,652,731,832.83
Undistributed profit 34,542,304,965.71 30,053,733,489.62
Total owners'equity 48,991,214,676.87 43,270,720,413.60
Total liabilitiesandowners'equity 49,317,627,759.35 43,641,166,650.85
3. Consolidated Income Statement
Unit: RMB
Item Year2019 Year2018
I. Totaloperatingrevenue 50,118,105,877.14 40,030,189,599.87
Including: Operatingrevenue 50,118,105,877.14 40,030,189,599.87
Interest revenue
Premium earned
Commission chargeandcommission
revenue
II. Totaloperatingcost 26,123,144,090.12 21,513,284,355.90
Including: Costofsales 12,802,259,947.34 10,486,782,934.27
Interest expenditure
Commission chargeandcommission
expense
Surrender value
Net amountofexpenseof
compensation
Net provisionforinsurancecontracts
Bonus insuranceexpense
Reinsurance expense
Tax andsurcharges 6,984,343,102.55 5,908,497,298.57
Selling expenses 4,985,579,336.77 3,778,433,675.01
Administrative expenses 2,655,347,148.09 2,340,498,705.44
Research anddevelopmentexpense 126,360,421.11 84,082,506.26
Financial expenses -1,430,745,865.74 -1,085,010,763.65
Including: Interestexpense
Interest revenue 1,416,398,912.72 1,081,572,031.13
Plus: Otherincomes 159,712,241.81 106,229,000.81
Investment income(lossindicatedwith 92,500,753.05 100,864,555.27
“-”)
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Including: Investmentincomefrom 92,500,753.05 100,864,555.05
associates andjoint-ventures
Income onde-recognitionoffinancial
assets measuredatamortizedcost
Exchange income(lossindicatedwith
“-”)
Net exposurehedgingincome(loss
indicated with“-”)
Income fromchangesoffairvalue(loss
indicated with“-”)
Credit impairmentloss(lossindicated -1,133,580.27
with “-”)
Asset impairmentloss(lossindicated -3,020,763.91 -10,879,427.89
with “-”)
Gain fromdisposalofassets(loss 2,779,400.03 5,273,892.02
indicated with“-”)
III. Operatingprofit(lossindicatedwith 24,245,799,837.73 18,718,393,264.18
“-”)
Plus: Non-operatingrevenue 29,890,272.65 43,803,121.66
Less: Non-operatingexpenditure 169,678,066.85 155,373,729.64
IV. Totalprofit(totallossindicatedwith 24,106,012,043.53 18,606,822,656.20
“-”)
Less: Incometaxexpenses 5,877,756,764.92 4,568,172,529.72
V. Netprofit(netlossindicatedwith“-”) 18,228,255,278.61 14,038,650,126.48
(I) Classificationbybusinesscontinuity
1. Netprofitfromcontinuingoperations 18,228,255,278.61 14,038,650,126.48
(net lossindicatedwith“-”)
2. Netprofitfromdiscontinued
operations (netlossindicatedwith“-”)
(II) Classificationbyownership
1. Netprofitattributabletoownerof 17,402,164,190.16 13,384,246,683.60
parent company
2. Minorityinterestincome 826,091,088.45 654,403,442.88
VI. Netamountofothercomprehensive
income aftertax
Net amountofothercomprehensive
income aftertaxattributabletoownerof
parent company
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(I) Othercomprehensiveincomethat
cannot reclassifiedintotheprofitand
loss
1. Changesarisingfromthe
remeasurement ofdefinedbenefitplan
2. Othercomprehensiveincomethat
cannot bereclassifiedintoprofitorloss
under theequitymethod
3. Changesinfairvalueofotherequity
instrument investment
4. Changesinfairvalueofcorporate
credit risk
5. Others
(II) Othercomprehensiveincomethat
will bereclassifiedintotheprofitand
loss
1. Othercomprehensiveincomethat
can bereclassifiedintoprofitorloss
under theequitymethod
2. Changesinfairvalueofotherdebt
investments
3. Changesinfairvaluethroughprofit
and lossofavailable-for-salefinancial
assets
4. Amountoffinancialassets
reclassified intoothercomprehensive
income
5. Held-to-maturityinvestment
reclassified intoavailable-for-sale
financial assets
6. Creditimpairmentprovisionforother
debt investments
7. Cashflowreserve
8. Balancearisingfromthetranslationof
foreign currencyfinancialstatements
9. Others
Net amountofothercomprehensive
income aftertaxattributabletominority
shareholders
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
VII. Totalcomprehensiveincome 18,228,255,278.61 14,038,650,126.48
Total comprehensiveincome 17,402,164,190.16 13,384,246,683.60
attributable toownerofparentcompany
Total comprehensiveincome 826,091,088.45 654,403,442.88
attributable tominorityshareholders
VIII. Earningspershare:
(I) Basicearningspershare 4.483 3.474
(II) Dilutedearningspershare 4.483 3.474
Net profit realized by the combined party before the consolidation in case of business combination under the same control
during the reporting period: RMB 0.00, and the net profit realized by the combined party in previous period: RMB 0.00.
Legal representative: Zeng Congqin Responsible person for accounting: Luo Wei Responsible person
of accounting firm: Luo Jun
4. Income Statement of Parent Company
Unit: RMB
Item Year2019 Year2018
I. Operatingrevenue 557,807.81 1,197,774.65
Less: Costofsales 0.00 0.00
Tax andsurcharges 530,756.77 76,818.28
Selling expenses
Administrative expenses 112,675,199.88 93,588,881.24
Research anddevelopment 42,509,849.28 20,665,781.90
expense
Financial expenses -747,727,624.11 -554,311,669.26
Including: Interestexpense
Interest revenue 747,767,664.67 554,545,450.89
Plus: Otherincomes 2,672,800.00 12,442,869.40
Investment income(lossindicated 11,979,399,612.91 8,596,460,952.96
with “-”)
Including: Investmentincomefrom 92,458,647.87 100,740,183.08
associates andjoint-ventures
Income onde-recognitionof
financial assetsmeasuredat
amortized cost(lossindicatedwith
“-”)
Net exposurehedgingincome(loss
indicated with“-”)
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Income fromchangesoffairvalue
(loss indicatedwith“-”)
Credit impairmentloss(loss -506,172.26
indicated with“-”)
Asset impairmentloss(loss -143,797.84
indicated with“-”)
Gain fromdisposalofassets(loss
indicated with“-”)
II. Operatingprofit(lossindicated 12,574,135,866.64 9,049,937,987.01
with “-”)
Plus: Non-operatingrevenue 670,614.65 604,043.30
Less: Non-operatingexpenditure 147,551,770.23 125,999,155.37
III. Totalprofit(totallossindicated 12,427,254,711.06 8,924,542,874.94
with “-”)
Less: Incometaxexpenses 108,026,839.29 83,515,112.50
IV. Netprofit(netlossindicatedwith 12,319,227,871.77 8,841,027,762.44
“-”)
(I) Netprofitfromcontinuing
operations (netlossindicatedwith 12,319,227,871.77 8,841,027,762.44
“-”)
(II) Netprofitfromdiscontinued
operations (netlossindicatedwith
“-”)
V. Netamountofother
comprehensive incomeaftertax
(I) Othercomprehensiveincomethat
cannot reclassifiedintotheprofitand
loss
1. Changesarisingfromthe
remeasurement ofdefinedbenefit
plan
2. Othercomprehensiveincomethat
cannot bereclassifiedintoprofitor
loss undertheequitymethod
3. Changesinfairvalueofother
equity instrumentinvestment
4. Changesinfairvalueofcorporate
credit risk
5. Others
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(II) Othercomprehensiveincome
that willbereclassifiedintotheprofit
and loss
1. Othercomprehensiveincomethat
can bereclassifiedintoprofitorloss
under theequitymethod
2. Changesinfairvalueofother
debt investments
3. Changesinfairvaluethrough
profit andlossofavailable-for-sale
financial assets
4. Amountoffinancialassets
reclassified intoother
comprehensive income
5. Held-to-maturityinvestment
reclassified intoavailable-for-sale
financial assets
6. Creditimpairmentprovisionfor
other debtinvestments
7. Cashflowreserve
8. Balancearisingfromthe
translation offoreigncurrency
financial statements
9. Others
VI. Totalcomprehensiveincome 12,319,227,871.77 8,841,027,762.44
VII. Earningspershare:
(I) Basicearningspershare
(II) Dilutedearningspershare
5. Consolidated Cash Flow Statement
Unit: RMB
Item Year2019 Year2018
I. Cashflowsfromoperating
activities:
Cash receivedfromthesalesof 63,111,448,367.92 46,031,388,431.46
goods andtherenderingofservices
Net increaseincustomerdeposit
and interbankdeposit
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Net increaseinloanfromcentral
bank
Net increaseincapitalborrowed
Cash receivedfromoriginal
insurance contractfee
Net cashreceivedfromreinsurance
business
Insured savingsandnetincreaseof
investment
Cash receivedfrominterest,
commission chargeandcommission
Net increaseofcapitalborrowed
Net increaseofreturnedbusiness
capital
Net cashreceivedfromsecurities
trading brokerage
Receipts oftaxrefunds 29,278,082.30 17,688,897.86
Other cashreceivedrelatingto 1,463,776,630.55 1,237,237,895.28
operating activities
Sub-total ofcashinflowsfrom 64,604,503,080.77 47,286,315,224.60
operating activities
Cash paymentsforgoods 16,858,330,333.04 13,866,014,356.07
purchased andservicesreceived
Net increaseofcustomerloansand
advances
Net increaseofdepositsincentral
bank andinterbank
Cash paidfororiginalinsurance
contract compensation
Net increaseincapitallent
Cash paidforinterest,commission
charge andcommission
Cash paidforpolicydividend
Cash paidtoemployeeandfor 5,633,645,226.36 4,824,010,398.00
employee
Payments ofalltypesoftaxes 15,634,936,299.82 13,308,818,523.69
Other cashpaidrelatingtooperating 3,365,519,180.89 2,970,112,911.94
activities
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sub-total ofcashoutflowsfrom 41,492,431,040.11 34,968,956,189.70
operating activities
Net cashflowsfromoperating 23,112,072,040.66 12,317,359,034.90
activities
II. Cashflowsfrominvesting
activities:
Cash receivedfromdisposalsand 8,000,000.00
withdraw oninvestment
Cash receivedfrominvestment 36,240,580.82
income
Net cashreceivedfromdisposalsof
fixed assets,intangibleassetsand 92,050,811.98 5,584,385.41
other long-termassets
Net cashreceivedfromdisposalof
subsidiaries andotherbusiness
units
Other cashreceivedrelatingto
investing activities
Sub-total ofcashinflowsfrom 92,050,811.98 49,824,966.23
investing activities
Cash paymentstoacquireand
construct fixedassets,intangible 1,698,655,125.66 381,381,461.74
assets andotherlong-termassets
Cash paymentstoacquire 9,800,000.00
investments
Net increaseofmortgagedloans
Net cashpaymentsforacquisitions
of subsidiariesandotherbusiness
units
Other cashpaymentsrelatingto
investing activities
Sub-total ofcashoutflowsfrom 1,708,455,125.66 381,381,461.74
investing activities
Net cashflowsfrominvesting -1,616,404,313.68 -331,556,495.51
activities
III. Cashflowsfromfinancing
activities:
Cash receivedfrominvestorsin 1,813,717,926.36
making investmentintheenterprise
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Including: Cashreceivedfrom
subsidiaries’ absorptionofminority 980,000.00
shareholders’ investment
Cash receivedfromborrowings
Other cashreceivedrelatingto
financing activities
Sub-total ofcashinflowsfrom 1,813,717,926.36
financing activities
Cash repaymentsofamounts
borrowed
Cash paidfordistributionof
dividends orprofits,orcash 7,251,646,962.56 5,409,549,048.53
payments forinterests
Including: Dividendsandprofitspaid
by subsidiariestominority 652,913,354.06 363,458,642.03
shareholders
Other cashpaymentsrelatingto 22,092,404.60
financing activities
Sub-total ofcashoutflowsfrom 7,251,646,962.56 5,431,641,453.13
financing activities
Net cashflowsfromfinancing -7,251,646,962.56 -3,617,923,526.77
activities
IV. Effectofforeignexchangerate
changes oncashandcash 63,661.42 366,479.55
equivalents
V. Netincreaseincashandcash 14,244,084,425.84 8,368,245,492.17
equivalents
Plus: Beginningbalanceofcashand 48,960,048,897.95 40,591,803,405.78
cash equivalents
VI. Endingbalanceofcashandcash 63,204,133,323.79 48,960,048,897.95
equivalents
6. Cash Flow Statement of Parent Company
Unit: RMB
Item Year2019 Year2018
I. Cashflowsfromoperating
activities:
Cash receivedfromthesalesof 592,800.00 1,338,997.84
goods andtherenderingofservices
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Receipts oftaxrefunds
Other cashreceivedrelatingto 3,324,064,952.46 587,350,043.73
operating activities
Sub-total ofcashinflowsfrom 3,324,657,752.46 588,689,041.57
operating activities
Cash paymentsforgoods
purchased andservicesreceived
Cash paidtoemployeeandfor 83,616,698.28 65,057,183.60
employee
Payments ofalltypesoftaxes 113,260,133.25 62,360,501.58
Other cashpaidrelatingtooperating 342,415,572.20 483,672,991.03
activities
Sub-total ofcashoutflowsfrom 539,292,403.73 611,090,676.21
operating activities
Net cashflowsfromoperating 2,785,365,348.73 -22,401,634.64
activities
II. Cashflowsfrominvesting
activities:
Cash receivedfromdisposalsand
withdraw oninvestment
Cash receivedfrominvestment 11,574,757,006.40 8,633,589,787.69
income
Net cashreceivedfromdisposalsof
fixed assets,intangibleassetsand 5,513.55 2,589.45
other long-termassets
Net cashreceivedfromdisposalof
subsidiaries andotherbusiness
units
Other cashreceivedrelatingto
investing activities
Sub-total ofcashinflowsfrom 11,574,762,519.95 8,633,592,377.14
investing activities
Cash paymentstoacquireand
construct fixedassets,intangible 1,043,835.63 5,091,254.39
assets andotherlong-termassets
Cash paymentstoacquire 169,473,007.80 545,826,992.20
investments
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Net cashpaymentsforacquisitions
of subsidiariesandotherbusiness
units
Other cashpaymentsrelatingto
investing activities
Sub-total ofcashoutflowsfrom 170,516,843.43 550,918,246.59
investing activities
Net cashflowsfrominvesting 11,404,245,676.52 8,082,674,130.55
activities
III. Cashflowsfromfinancing
activities:
Cash receivedfrominvestorsin 1,812,737,926.36
making investmentintheenterprise
Cash receivedfromborrowings
Other cashreceivedrelatingto
financing activities
Sub-total ofcashinflowsfrom 1,812,737,926.36
financing activities
Cash repaymentsofamounts
borrowed
Cash paidfordistributionof
dividends orprofits,orcash 6,598,733,608.50 5,046,090,406.50
payments forinterests
Other cashpaymentsrelatingto 22,092,404.60
financing activities
Sub-total ofcashoutflowsfrom 6,598,733,608.50 5,068,182,811.10
financing activities
Net cashflowsfromfinancing -6,598,733,608.50 -3,255,444,884.74
activities
IV. Effectofforeignexchangerate
changes oncashandcash
equivalents
V. Netincreaseincashandcash 7,590,877,416.75 4,804,827,611.17
equivalents
Plus: Beginningbalanceofcashand 20,666,489,987.76 15,861,662,376.59
cash equivalents
VI. Endingbalanceofcashandcash 28,257,367,404.51 20,666,489,987.76
equivalents
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
7. Consolidated Statement of Changes in Owners' Equity
Amount of current period
Unit: RMB
Owner’s equityattributabletoparentcompany Year2019
Item Capitalstock PrefeOrrtheedreqPueityrpientsutarulments Capitalreserve TrLeeasssu:rycomOpthreehren Special Surplusreserve Provisionfor Undistributedprofit Others Sub-total Minorityequity Totalowners'equity
I.Endingbalanceofprevious share bond Others stock siveincome reserves generalrisk
pPelursio:dChangesinaccounting 3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
Cpoolricreyctionofpriorerrors
iBnuvsoilnveinsgsecnotmerbpirnisaetisonunder
tOhtehesrasmecontrol
cIIuI.rBreengtinyenainrgbalanceof 3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
IcIuI.rIrnecnrtepaesreio/dde(cdreecarseeasinethe 2,971,785,992.59 7,831,644,589.07 10,803,430,581.66 173,177,734.39 10,976,608,316.05
(inI)dTicoatateldcowmithpr“e-h”)ensive
i(nIIc)oCmaepitalpaidinand 17,402,164,190.16 17,402,164,190.16 826,091,088.45 18,228,255,278.61
r1e.dCuocmedmboynoswtoncekrssinvested
b2.yCoawpnietarlsinvestedbyother
e3q.Auimtyoiunnsttroufmsehnatreh-obldaesresd
poawynmeresn’etsqureitcyognizedin
4(I.IIO)Pthreorfsitdistribution 2,971,785,992.59 -9,570,519,601.09 -6,598,733,608.50 -652,913,354.06 -7,251,646,962.56
r1e.sWerivthedrawalofsurplus 2,971,785,992.59 -2,971,785,992.59
g2e.Wneirtahldrriaswkalofprovisionfor
s3h.aDrieshtroiblduetirosn)toowners(or -6,598,733,608.50 -6,598,733,608.50 -652,913,354.06 -7,251,646,962.56
(4I.VO)Itnhteerrsnaltransferof
1o.wCnearpsit'aelqrueistyervetransferto
pstaoidck-i)ncapital(orcapital
p2a.iSdu-irnplcuaspriteasle(rovrectarapnitasflerto
s3t.oRcke)coveryoflossesby
4su.rCpalursryrfeosrewravredretained
edaerfinniendgsbeinnveafirtiaptlaionnof
5ea.rCnainrrgysfoofrwoathrderretained
c6o.mOtphreerhsensiveincome
1(V.)WSipthedcriaawlraelsoefrcvuersrent
p2e.rUiosdeofcurrentperiod
I(VI).OEtnhdeirnsgbalanceofcurrent
period 3,881,608,005.00 2,682,647,086.15 16,092,197,023.01 51,634,248,548.06 74,290,700,662.22 1,805,346,994.94 76,096,047,657.16
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Amount of previous period
Unit: RMB
Owner’sequityattributabletoparentcompany Year2018
Item Capitalstock PrefOetrhreedrequPiteyrpinestutraulmenOtsthersCapitalreserve TrLeeasssu:rycoOmnstphivreeerherSespeercvieaslSurplusreserve PgreonveisraiolnrisfokrUndistributedprofit Others Sub-total Minorityequity Totalowners'equity
share bond stock income
Ip.eErinoddingbalanceofprevious 3,795,966,720.00 953,255,757.17 10,909,576,690.57 37,675,282,021.74 53,334,081,189.48 1,340,244,459.70 54,674,325,649.18
pPolulisc:yChangesinaccounting
BCuosrrinecetsiosncoomfpbriinoarteiorrnoirnsvolving
ceonntetrroplrisesunderthesame
IOIIt.hBeersginningbalanceofcurrent
IyIeI.aIrncrease/decreaseinthe 3,795,966,720.00 953,255,757.17 10,909,576,690.57 37,675,282,021.74 53,334,081,189.48 1,340,244,459.70 54,674,325,649.18
cinudrirceanttepdewriiothd“(-d”e)crease 85,641,285.00 1,729,391,328.98 2,210,834,339.85 6,127,321,937.25 10,153,188,891.08 291,924,800.85 10,445,113,691.93
((III))TCoataplitcaolmpapirdehinenasnidvereindcuocmede 13,384,246,683.60 13,384,246,683.60 654,403,442.88 14,038,650,126.48
b1.yCoowmnemrsonstocksinvestedby 85,641,285.00 1,729,391,328.98 1,815,032,613.98 980,000.00 1,816,012,613.98
o2.wCnearpsitalinvestedbyother 85,641,285.00 1,729,391,328.98 1,815,032,613.98 980,000.00 1,816,012,613.98
e3.qAuimtyoiunnsttroufmsehnatreh-obldaesresd
epaquymityentsrecognizedinowners'
4(I.IIO)Pthreorfsitdistribution 2,210,834,339.85 -7,256,924,746.35 -5,046,090,406.50 -363,458,642.03 -5,409,549,048.53
12..WWiitthhddrraawwaallooffspurorpvlisuisonrefsoerrve 2,210,834,339.85 -2,210,834,339.85
3ge.nDeisratrlibriustkiontoowners(or
4sh.aOrtehheorslders) -5,046,090,406.50 -5,046,090,406.50 -363,458,642.03 -5,409,549,048.53
e(IqVu)itInyternaltransferofowners'
p1.aiCda-ipnitcaalpreitsaelr(overctraapnitsaflesrttoock)
p2.aiSdu-irnplcuaspriteasle(rovrectarapnitasflesrtotock)
3re.sReervceoveryoflossesbysurplus
e4.arCnainrrgysfionrwvaarridatrieotnaionfeddefined
5be.nCeafritrypflaonrwardretained
ceoamrnpinrgesheonfsoivtheeirncome
6(V.)OSthpeercsialreserves
12..WUsitehdorfacwuarrleonftcpuerrrieondtperiod
I(VI).OEtnhdeirnsgbalanceofcurrent
period 3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
8. Statement of Changes in Owners' equity of Parent Company
Amount of current period
Unit: RMB
Year2019
Item Capitalstock PreferredOsthhearreequityPinebsrptorenutdmuaelntsOthers Capitalreserve TrLseteaosscsuk:rycomipnOrcetohhmeernesiverSespeercvieasl Surplusreserve Undistributedprofit Others Totalowners'equity
I.Endingbalanceofpreviousperiod 3,881,608,005.00 2,682,647,086.15 6,652,731,832.83 30,053,733,489.62 43,270,720,413.60
Plus: Changesinaccountingpolicy
Correction ofpriorerrors
Others
III.Beginningbalanceofcurrentyear 3,881,608,005.00 2,682,647,086.15 6,652,731,832.83 30,053,733,489.62 43,270,720,413.60
(IIdI.eIcnrceraesaesein/ddieccarteeadsweiitnht“h-”e)currentperiod 1,231,922,787.18 4,488,571,476.09 5,720,494,263.27
(I)Totalcomprehensiveincome 12,319,227,871.77 12,319,227,871.77
(II) Capitalpaidinandreducedbyowners
1.Commonstocksinvestedbyowners
2in.sCtraupmiteanltinhvoeldseterdsbyotherequity
3re.cAomgnoiuznetdoifnsohwarnee-rbsa’esqeuditpyayments
4.Others
(III) Profitdistribution 1,231,922,787.18 -7,830,656,395.68 -6,598,733,608.50
1.Withdrawalofsurplusreserve 1,231,922,787.18 -1,231,922,787.18
2.Distributiontoowners(orshareholders) -6,598,733,608.50 -6,598,733,608.50
3.Others
(IV) Internaltransferofowners'equity
1(o.rCcaappiittaallrsetsoecrkv)etransfertopaid-incapital
2(o.rScuarppiltuaslsretoscekr)vetransfertopaid-incapital
3.Recoveryoflossesbysurplusreserve
v4a.rCiaatriorynfoofrwdeafridneredtabienneedfietaprlaninngsin
5co.mCaprrreyhfeonrswiaverdinrectoamineedearningsofother
6.Others
(V) Specialreserves
1.Withdrawalofcurrentperiod
2.Useofcurrentperiod
(I) Others
IV.Endingbalanceofcurrentperiod 3,881,608,005.00 2,682,647,086.15 7,884,654,620.01 34,542,304,965.71 48,991,214,676.87
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Amount of previous period
Unit: RMB
Year2018
Item Capitalstock PreferredOtherequityinstruments Capitalreserve TrLeeasssu:rycompOrethheernsiveSpecial
share Perpetualbond Others stock income reserves Surplusreserve Undistributedprofit Others Totalowners'equity
I.Endingbalanceofpreviousperiod 3,795,966,720.00 953,255,757.17 5,768,629,056.59 27,142,898,909.92 37,660,750,443.68
Plus:Changesinaccountingpolicy
Correction ofpriorerrors
Others
III.Beginningbalanceofcurrentyear 3,795,966,720.00 953,255,757.17 5,768,629,056.59 27,142,898,909.92 37,660,750,443.68
(IIdI.eIcnrceraesaesein/ddieccarteeadsweiitnht“h-”e)currentperiod 85,641,285.00 1,729,391,328.98 884,102,776.24 2,910,834,579.70 5,609,969,969.92
(I)Totalcomprehensiveincome 8,841,027,762.44 8,841,027,762.44
(II)Capitalpaidinandreducedbyowners 85,641,285.00 1,729,391,328.98 1,815,032,613.98
1.Commonstocksinvestedbyowners 85,641,285.00 1,729,391,328.98 1,815,032,613.98
2in.sCtraupmiteanltinhvoeldseterdsbyotherequity
3re.cAomgnoiuznetdoifnsohwarnee-rbsa'seeqduiptyayments
4.Others
(III)Profitdistribution 884,102,776.24 -5,930,193,182.74 -5,046,090,406.50
1.Withdrawalofsurplusreserve 884,102,776.24 -884,102,776.24
2.Distributiontoowners(orshareholders) -5,046,090,406.50 -5,046,090,406.50
3.Others
(IV)Internaltransferofowners'equity
1(o.rCcaappiittaallrsetsoecrkv)etransfertopaid-incapital
2(o.rScuarppiltuaslsretoscekr)vetransfertopaid-incapital
3.Recoveryoflossesbysurplusreserve
v4a.rCiaatriorynfoofrwdeafridneredtabienneedfietaprlaninngsin
5co.mCaprrreyhfeonrswiaverdinrectoamineedearningsofother
6.Others
(V)Specialreserves
1.Withdrawalofcurrentperiod
2.Useofcurrentperiod
(I)Others
IV.Endingbalanceofcurrentperiod 3,881,608,005.00 2,682,647,086.15 6,652,731,832.83 30,053,733,489.62 43,270,720,413.60
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
III. Company Profile
1. Company history
The Company is a company limited by shares established by Sichuan Yibin Wuliangye LiquorFactory through fund raising on August 19, 1997 with the approval of Document CFH (1997) No.295issued by Sichuan Provincial People's Government. The Company is mainly engaged in the productionand sales of "Wuliangye" and its series liquors, with a registered capital of RMB 3,795.96672 million andregistered address at No.150, West Minjiang Road, Yibin, Sichuan.
The Company issued 80 million common shares (in RMB) on-line by fixed price offering atShenzhen Stock Exchange on April 27, 1998. According to the resolution of the extraordinary generalmeeting in September 1999, the Company, based on the total capital stock of 320 million shares on June30, 1999, transferred capital reserve to increase capital stock, increasing 5 shares for every 10 sharesand the total capital stock after the conversion was changed to 480 million shares. The Company placed31.2 million common shares (in RMB) to the original shareholders as approved by the Document ZJGS(2001) No.6 issued by the China Securities Regulatory Commission. The total capital stock after theplacement was 511.2 million shares. In August 2001, the Company implemented the interim distributionplan 2001 and issued 4 bonus shares and increased 3 shares for every 10 shares by transferring capitalreserve to capital stock, with 357.84 million bonus shares and shares transferred from capital reserve intotal. The total capital stock after the issuance and translation was 869.04 million shares. In April 2002,the Company implemented the distribution plan 2001 and issued 1 bonus shares, increased 2 shares bytransferring capital reserve to capital stock, and distributed RMB 0.25 (tax inclusive) in cash for every 10shares, with 260.712 million bonus shares in total. The total capital stock after the issuance andtranslation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan2002 and increased 2 shares for every 10 shares by transferring capital reserve to capital stock for allshareholders, increasing the capital stock by 225.9504 million shares. The total capital stock after thetranslation was 1,355.7024 million shares. In April 2004, the Company implemented the distribution plan2003 and issued 8 bonus shares and increased 2 shares by transferring capital reserve to capital stockfor every 10 shares, with 1,355.7024 million bonus shares in total. The total capital stock after theissuance and translation was 2,711.4048 million shares.
On March 31, 2006, the Company carried out the shareholder structure reform and the shareholderstructure after the reform was as below: 1,817.7869 million shares for state-owned legal person, takingup 67.04% of the total share stock, 493.4 thousand shares for officers, taking up 0.02% of the total sharestock, and 893.1245 million shares for other shareholders, taking up 32.94% of the total share stock.The total capital stock remained 2,711.4048 million shares.
In April 2007, the Company implemented the distribution plan 2006 and issued 4 bonus shares anddistributed RMB 0.60 (tax inclusive) in cash for every 10 shares, with 1,084.5619 million bonus shares intotal. The total capital stock after the issuance and distribution was 3,795.96672 million shares. On April2, 2008, shares for state-owned legal person decreased by 416.5303 million shares due to the exerciseof warrants and became 2,128.3714 million shares, taking up 56.07% of the total capital stock. Othershareholders held 1,667.5954 million shares, taking up 43.93% of the total capital stock.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders ofWuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission ofSichuan Province (CGZCQ (2012) No.88) and the Reply on Free Transfer of Shares Held byState-owned Shareholders of Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision andAdministration Commission of the State Council (GZCQ (2012) No.889), Yibin State-Owned Assets
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Operation Co., Ltd. transferred 761,823,343 shares held by it in the Company to Wuliangye Group for
free on October 10, 2012. After this free transfer of shares, Yibin State-Owned Assets Operation Co., Ltd.
still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was the first majority shareholder
of the Company; Wuliangye Group, holding 20.07% shares of the Company (i.e. 761,823,343 shares),
was the second majority shareholder of the Company.
According to the Reply on Free Transfer of Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.(YGZW (2016) No.32), the State-owned Assets Supervision and Administration Commission of YibinMunicipal Government transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. toYibin State-Owned Assets Operation Co., Ltd. for free in 2016. This transfer of shares did not involve inthe change of shares held by both parties in the Company, without changing the controlling shareholderand actual controller of the Company.
According to the resolutions of the 11th meeting of the 5th board of directors, annual generalmeeting 2015, the 19th meeting of the 5th board of directors, the 24th meeting of the 5th board ofdirectors, and annual general meeting 2016 of the Company and as approved by the License ZJXK(2017) No.1910 issued by the China Securities Regulatory Commission, the Company issued85,641,285 shares by non-public offering by means of targeted issue. The total capital stock after theissuance was 3,881.608 million shares, including 2128.3714 million shares for state-owned legal person,taking up 54.83% of the total capital stock, and 1,753.2366 million shares for other shareholders, takingup 45.17% of the total capital stock.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage manufacturing industry and its business scope is:Production and operation of liquor products and relevant auxiliary products (bottle caps, trademarks,logos and packaging products). Its main products are "Wuliangye" and its series liquors.
3. Approval of financial statements
These financial statements have been reviewed and approved by the board of directors of theCompany on April 24, 2020, and will be submitted to the general meeting for review according to theArticles of Association.
4. Scope of consolidated financial statements of current year
As of December 31, 2019, subsidiaries included in the scope of consolidated financial statements ofthe Company were:
Full nameofsubsidiary Typeofsubsidiary Tier Shareholding Proportionof
proportion votes
SichuanYibinWuliangyeWineryCo.,Ltd. Holdingsubsidiary First-tier 99.99% 99.99%
YibinWuliangyeLiquorSalesCo.,Ltd. Holdingsubsidiary First-tier 95.00% 95.00%
YibinWuliangTequandTouquBrandMarketingCo.,Ltd. Holdingsubsidiary Second-tier 95.00% 95.00%
YibinWuliangchunBrandMarketingCo.,Ltd Holdingsubsidiary Second-tier 95.00% 95.00%
YibinWuliangyeSeriesLiquorBrandMarketingCo.,Ltd. Holdingsubsidiary Second-tier 95.00% 95.00%
SichuanYibinWuliangyeSupplyandMarketingCo.,Ltd. Holdingsubsidiary First-tier 99.95% 99.95%
YibinJiangjiuLiquorCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
SichuanYibinWuliangyeEnvironmentalProtectionCo.,Ltd. Holdingsubsidiary First-tier 51.00% 51.00%
SichuanJinwuxinTechnologyCo.,Ltd. Holdingsubsidiary Second-tier 51.00% 51.00%
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
SichuanJiebeikeEnvironmentalTechnologyCo.,Ltd. Holdingsubsidiary Second-tier 26.01% 26.01%
YibinChangjiangyuanLiquorCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
YibinChangjiangyuanTradeCo.,Ltd. Wholly-owned Second-tier 100.00% 100.00%
subsidiary
YibinChangjiangyuanBreweryCo.,Ltd. Wholly-owned Second-tier 100.00% 100.00%
subsidiary
YibinWuliangyeOrganicAgricultureDevelopmentCo.,Ltd. Wholly-owned Second-tier 100.00% 100.00%
subsidiary
YibinWuliangyeXianlinEcologicalLiquorCo.,Ltd. Holdingsubsidiary First-tier 90.00% 90.00%
YibinXianlinLiquorMarketingCo.,Ltd. Holdingsubsidiary Second-tier 90.00% 90.00%
YibinWuliangyeXinshengdaiLiquorCo.,Ltd. Holdingsubsidiary Second-tier 42.30% 42.30%
SichuanYibinWuliangyeJingmeiPrintingCo.,Ltd. Holdingsubsidiary First-tier 98.53% 98.53%
YibinXinxingPackagingCo.,Ltd. Holdingsubsidiary Second-tier 98.53% 98.53%
SichuanYibinPlasticPackagingMaterialsCompanyLimited Wholly-owned First-tier 100.00% 100.00%
subsidiary
SichuanYibinGlobalGroupShenzhouGlassCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
SichuanYibinGlobalGelasiGlassManufacturingCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
SichuanYibinPushGroup3DCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
GuangdongFoshanPlasticPackagingMaterialsCompany Wholly-owned Second-tier 100.00% 100.00%
Limited subsidiary
SichuanYibinWuliangyeInvestment(Consulting)Co.,Ltd. Holdingsubsidiary First-tier 95.00% 95.00%
WuhouCulturalDevelopmentCo.,Ltd. Holdingsubsidiary Second-tier 70.30% 70.30%
YibinZhenwushanLiquorCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
YibinShijiLiquorCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
YibinCuipingshanLiquorCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
WuliangyeDashijie(Beijing)TradeCo.,Ltd. Holdingsubsidiary First-tier 95.00% 95.00%
HandanYongbufenliLiquorCo.,Ltd. Holdingsubsidiary First-tier 51.00% 51.00%
LinzhangDeshengWineTradeCo.,Ltd. Holdingsubsidiary Second-tier 51.00% 51.00%
HandanYongbufenliSalesCo.,Ltd. Holdingsubsidiary Second-tier 51.00% 51.00%
HuaibinWubinConsultationServiceCo.,Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
WuguchunJiuYeCo.,Henan.China Holdingsubsidiary Second-tier 51.03% 51.03%
HuaibinTenglongTradeCo.,Ltd. Holdingsubsidiary Third-tier 51.03% 51.03%
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
WuguchunJiuYeSalesCo.,Henan.China Holdingsubsidiary Third-tier 51.03% 51.03%
Sichuan WuliangyeCultureTourismDevelopmentCo.,LTD Holdingsubsidiary First-tier 80.00% 80.00%
Sichuan WuliangyeTouristAgencyCo.,Ltd. Holdingsubsidiary Second-tier 80.00% 80.00%
YibinWuliangyeCreartCo.,Ltd. Holdingsubsidiary First-tier 45.00% 51.00%
WuliangNongXiangSeriesBaijiuYibinCo.,Ltd. Holdingsubsidiary First-tier 95.00% 95.00%
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for thescope of consolidated financial statements of current period and its changes.
IV. Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and therecognition and measurement are made at actual transactions and matters in accordance with theAccounting Standards for Business Enterprises-Basic Standards issued by the Ministry of Finance andthe specific Accounting Standards for Business Enterprise, Guidelines for Application of AccountingStandards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprisesand other relevant provisions (hereinafter referred to as “Accounting Standards for Business Enterprise”),combining with the Preparation Rules for Information Disclosure by Companies Offering Securities to thePublic No. 15 - General Provisions on Financial Reports (2014 revision) issued by China SecuritiesRegulatory Commission on this basis.
2. Going concern
The Company has the ability of going concern for at least 12 months from the end of the reportingperiod, and there is no major event affecting the ability of going concern.
V. Significant accounting policy and accounting estimates
Specific accounting policy and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimatesformulated by the Company according to the actual production and operation characteristics.
1. Note on compliance with Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of theAccounting Standards for Business Enterprises and truly and completely reflect the Company's financialposition, operating results, cash flows and other relevant information.
2. Accounting period
From January 1 to December 31 of each calendar year.3. Operating cycle
The Company’s operating cycle is 12 months.4. Bookkeeping currency
RMB is used as the bookkeeping currency and reporting currency of the Company.5. Accounting methods for business combination involving enterprises under and not underthe same control
(1) Business combination involving enterprises under the same control
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The assets and liabilities acquired by the combining party through business combination involvingenterprises under the same control are measured at the share of owner's equity of the combined party inthe book value on consolidated statements of the final controlling party on the combination date. Thedifference between the book value of the net assets obtained by the combining party and the book valueof consideration paid for the combination (or total par value of the shares issued) is adjusted againstcapital stock premium in the capital reserve; if the capital reserve is not sufficient for writing down, theretained earnings shall be adjusted. All the direct costs incurred by the combining party for the businesscombination shall be recorded into current profit/loss when incurred.
(2) Business combination involving enterprises not under the same control
In case of business combination involving enterprises not under the same control, the combinationcosts shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securitiesissued on the date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the same control achieved throughstep-by-step implementation of multiple transactions, related accounting treatment shall be carried outby distinguishing individual financial statements from consolidated financial statements:
① In the individual financial statements, the sum of book value of the equity investment held in theacquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall betaken as the initial cost of such investment; Where the equity held in the acquiree prior to the date ofacquisition involves other comprehensive income, the other comprehensive income related to suchinvestment (eg. part of the changes in fair value of the available-for-sale financial assets which isrecorded into capital reserve, the same below) shall be transferred to current investment income.
② In the consolidated financial statements, the equity held in the acquiree prior to the date ofacquisition shall be re-measured at the fair value of such equity on the date of acquisition, and thedifference between its fair value and its book value shall be recorded into the current investment income;Where the equity held in the acquiree prior to the date of acquisition involves other comprehensiveincome, the other comprehensive income related to such investment shall be transferred to currentinvestment income on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and otheradministrative expenses incurred by the acquirer for the business combination shall be recorded intocurrent profit/loss; the transaction expenses for issuing equity securities or debt securities by theacquirer as consideration of the combination shall be recorded into the initial recognition amount of theequity securities or debt securities.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the businesscombination involving enterprises not under the same control shall be measured at the fair value on thedate of acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of theacquiree's net identifiable assets obtained in the combination, the difference shall be recognized asgoodwill. Where the combination cost is less than the acquirer's interest in the fair value of the acquiree'snet identifiable assets obtained in the combination, the acquirer shall first recheck the fair values of theacquiree's identifiable assets, liabilities and contingent liabilities obtained in the combination and thecombination cost. Where the combination cost is still less than the acquirer's interest in the fair value ofthe acquiree’s net identifiable assets obtained in the combination, the difference shall be recorded intothe current profit/loss.
6. Methods for preparing consolidated financial statements
(1) Principles for determining the scope of consolidated financial statements:
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The scope of consolidated financial statements is determined on the basis of control, including theCompany and the subsidiaries under its control. Control means that the Company has the power overthe invested company, gets variable return by participating in related activities of the invested companyand has the ability to influence the amount of the return by its power over the invested company.
(2) Methods for preparing consolidated financial statements:
The parent company shall prepare the consolidated financial statements based on its financialstatements and those of its subsidiaries and according to other relevant information. The share of thesubsidiaries in current profit/loss attributable to minority equity shall be presented in the consolidatedincome statement as "minority interest income" under the net profit. The share in current comprehensiveincome of the subsidiaries which is attributable to minority equity shall be presented in the consolidatedincome statement as "total comprehensive income attributable to minority shareholders" under the totalother comprehensive income.
For subsidiaries and businesses of the parent company added by business combination involvingenterprises under the same control during the reporting period, the revenue, expenses, and profits ofsuch subsidiaries and businesses from the beginning to the end of the period of business combinationshall be recorded into the consolidated income statement. Cash flows of such subsidiary and businessesfrom the beginning to the end of the year of business combination shall be recorded into theconsolidated cash flow statement, and relevant items of the statements shall be adjusted throughcomparison of the statements, as if the reporting entity after the combination had been existing fromcontrol of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not underthe same control or other means, the revenue, expenses, and profits of such subsidiaries andbusinesses from the date of acquisition to the end of reporting period shall be recorded into theconsolidated income statement. Cash flows of such subsidiary from the date of acquisition to the end ofreporting period shall be recorded into the consolidated cash flow statement.
When the parent company disposes subsidiaries and businesses during the reporting period, therevenue, expenses, and profits of such subsidiary and business from beginning of the reporting period tothe date of disposal shall be recorded into the consolidated income statement; Cash flows of suchsubsidiary and business from beginning of the reporting period to the date of disposal shall be recordedinto the consolidated cash flow statement.
In the consolidated financial statements, when the Company acquires the equity held by theminority shareholders in the subsidiary, the difference between the long-term equity investment obtainedby acquiring minority equity and the share of the net assets to be enjoyed and continuously calculatedfrom the date of acquisition or combination according to the new increase in shareholding proportionshall be adjusted against the capital reserve (capital premium or capital stock premium). If the capitalreserve is not sufficient for writing down, the retained earnings shall be adjusted.
7. Classification of joint venture arrangements and accounting methods for joint operations
Joint venture arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture andowns its relevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat themaccording to relevant Accounting Standards for Business Enterprise:
(1) Recognize assets solely held by the Company, and those jointly owned assets accordingto the Company's share;
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilitiesaccording to the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of jointoperation;
(4) Recognize revenue from sales in the joint operation according to the Company's share.
(5) Recognize expenses solely incurred, and those incurred for joint operation according tothe Company's share;
Refer to the Note "long-term equity investment" for the accounting policy of the Company forinvestments in joint venture.
8. Recognition criteria for cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at anytime; cash equivalents refer to the short-term (no more than three months since the date of acquisition)and highly liquid investments that are readily convertible into known amounts of cash and that aresubject to an insignificant risk of change in value.
9. Foreign currency transaction and translation of financial statements prepared in foreign
currencies
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping currency at the benchmarkexchange rate (which is generally refers to the middle rate of the current foreign exchange ratepublished by the People's Bank of China, the same below) published by the People's Bank of China onthe transaction date; at the end of the period, foreign currency monetary items shall be translated at theending spot exchange rate; non-monetary items in foreign currency measured at historical cost shall betranslated at the spot exchange rate prevailing on the transaction date; monetary items in foreigncurrency and measured at the fair value shall be translated at the spot exchange rate prevailing on thedate of determining fair value. The difference arising from translation shall be recorded into theconstruction cost of relevant fixed assets if in connection with acquisition and construction of the fixedassets which has not yet reached its intended condition for use; shall be recorded intoadministrativeexpenses if incurring during the preparation period and not in connection with acquisitionand construction of fixed assets; and shall be recorded into current financial expenses if incurring duringthe production and operation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balancesheet date; all items of owners’equity, except for undistributed profit, shall be translated at the spotexchange rate at the time of incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rateon the date of transaction. The translation difference of the foreign currency financial statements arisingfrom the translation shall be separately presented under the owner's equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated atthe spot exchange rate on the date of incurrence of the cash flows.
10. Financial instruments
Financial instruments refer to any contract that gives rise to a financial asset of a party and financialliabilities or equity instruments of other parties.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a partyof the financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) Thecontractual right to charge the cash flow of the financial assets is terminated; 2) The financial assetshave been transferred and the Company has transferred almost all risks and remuneration of thefinancial assets ownership to the transferee; 3) The financial assets have been transferred and theCompany does neither transfer nor retain almost all risks and remuneration of the financial assetsownership but gives up the control over the financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (orpart thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize theassets to be received and the liabilities to be assumed on the date of transaction, or derecognize theassets sold on the date of transaction.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flowcharacteristics of financial assets, the financial assets of the Company are classified into: financialassets measured at the amortized cost; financial assets at fair value through other comprehensiveincome; financial assets at fair value through profit or loss.
1) Initial measurement of financial assets
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets atfair value through profit or loss, relevant transaction expenses shall be directly recorded into currentprofit or loss; for other categories of financial assets, relevant transaction expenses shall be recordedinto the initial recognition amount. For notes receivable and accounts receivable arising from sales ofgoods or provision of service which do not include or consider the compositions of major assets, theCompany shall take the consideration expected to be received as the initial recognition amount.
2) Subsequent measurement of financial assets
① Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtainingcontractual cash flow, and the characteristics of contractual cash flow of such financial assets arebasically the same as basic borrowing arrangement, namely the cash flow arising on a specific date,which are solely payments of principal and interest on the principal amount outstanding. The Companysubsequently measures such financial assets at amortized costs by effective interest method. The gainor loss from their amortization, impairment and derecognition shall be recorded into current profit or loss.
② Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receivingcontractual cash flow as well as selling, and the characteristics of contractual cash flow of such financialassets are basically the same as basic borrowing arrangement. Such financial assets shall be measuredat fair value, with the changes recorded into other comprehensive income, but the impairment loss,exchange gain or loss and interest revenue calculated by effective interest method shall be recorded intocurrent profit or loss. The accumulative gains or losses which are previously recorded into othercomprehensive income shall be transferred out from other comprehensive income and recorded intocurrent profit or loss upon derecognition.
③ Investment in debt instruments at fair value through profit or loss
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The Company classifies debt instruments held which are not classified as debt instrumentsmeasured at amortized cost and debt instruments at fair value through other comprehensive income asfinancial assets at fair value through profit or loss. For eliminating or significantly reducing accountingmismatch upon initial recognition, financial assets may be designated as financial assets at fair valuethrough profit or loss. Such financial assets shall be subsequently measured at fair value with allchanges in fair value recorded into current profit or loss. Only when the Company changes the businessmodel of managing financial assets, shall relevant financial assets being affected be reclassified.
④ Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financialassets at fair value through other comprehensive income upon initial recognition. The Company recordsrelevant dividends income into current profit or loss, with changes in fair value recorded into othercomprehensive income. The accumulative gains or losses which are previously recorded into othercomprehensive income shall be transferred from other comprehensive income to retained earningsinstead of current profit or loss upon derecognition of such financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownershipto the transferee, the financial assets shall be derecognized; if the Company retain almost all risks andremuneration of the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financialassets ownership but gives up the control over the financial assets, such financial assets shall bederecognized and the rights or obligations arising or retained during the transfer shall be separatelyrecognized as assets or liabilities; if control over the financial assets is retained, relevant financial assetsshall be continuously recognized according to the extent of involving in the financial assets transferredand relevant liabilities shall be recognized accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost andfinancial liabilities at fair value through profit or loss upon initial recognition.
1) Initial measurement of financial liabilities
Any financial liability meeting one of the following conditions can be designated upon initialrecognition as the financial liabilities at fair value through profit or loss: ① This designation caneliminate or significantly reduce accounting mismatch; ② According to the risk management orinvestment strategy of the Company as stated in formal written document, the portfolio of financialliabilities or the portfolio of financial assets and financial liabilities is managed and evaluated on the basisof fair value, and reported to the key management on the basis of this inside the Company; ③ Thisfinancial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. Forfinancial liabilities at fair value through profit or loss, relevant transaction expenses shall be directlyrecorded into current profit or loss; relevant transaction expenses of financial liabilities measured atamortized cost shall be recorded into the initial recognition amount.
2) Subsequent measurement of financial liabilities
① Financial liabilities measured at amortized cost: The Company subsequently measures suchfinancial liabilities at amortized costs by effective interest method. The gain or loss from derecognition oramortization shall be recorded into current profit or loss.
② Financial liabilities at fair value through profit or loss: Including trading financial liabilities
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value
through profit and loss upon initial recognition.
Trading financial liabilities (including derivative instruments belonging to financial liabilities) shall besubsequently measured at fair value (except for those concerning hedge accounting) with changes infair value recorded into current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fairvalue arising from change of the credit risk of the Company shall be recorded into other comprehensiveincome; accumulative gain or loss previously recorded into other comprehensive income shall betransferred from other comprehensive income to retained earnings. Other changes in fair value shall berecorded into current profit or loss. If previous accounting treatment may cause or expand theaccounting mismatch in profit or loss, all gains or losses of such financial liabilities (including the amountaffected by change in credit risk of the Company) shall be recorded into current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilitiesshall be presented as net amount after offset in the balance sheet: The Company has the legal right tooffset the recognized amount and may exercise such legal right currently; the Company plans to settlewith net amount or realize the financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation inthe active market. For financial instruments without active market, the fair value shall be determined byvaluation technique. The Company shall adopt the valuation technique which is applicable in currentsituation and supported by sufficient available data and other information for valuation. The Companyshall choose inputs which are consistent with the characteristics of assets or liabilities considered by themarket participant in the transaction of relevant assets and liabilities, and give priority to relevantobservable inputs. If it is impossible or impractical to obtain relevant observable inputs, the Companymay use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortizedcost, investments in debt instruments at fair value through other comprehensive income, contract asset,lease receivables, loan commitment and financial guarantee contracts based on the expected creditloss.
The expected credit loss refers to the weighted average credit loss of financial instrumentsweighted by the risk of default. Credit loss refers to the difference between all contract cash flowsdiscounted by the Company at the original effective interest rate and receivable according to the contractand all expected cash flows received, namely the present value of all cash shortage. Among which, thefinancial assets purchased or originated that have suffered from credit impairment shall be discounted atthe effective interest rate of the financial assets after credit adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during theexpected lifetime of financial instruments due to defaults.
12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (ifthe expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after thedate of balance sheet due to possible defaults of financial instruments and is an integral part of thelifetime expected credit loss.
On the date of balance sheet, the Company measured the expected credit loss of financial
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
instruments at different stages, respectively. If the credit risk of a financial instrument has not increased
significantly since the initial recognition, the financial instrument is in the Stage 1, and the Company
measures the provisions for loss according to the 12-month expected credit loss; if the credit risk of a
financial instrument has increased significantly but the credit impairment has not yet occurred since the
initial recognition, the financial instrument is in the Stage 2, and the Company measures the provisions
for loss according to the lifetime expected credit losses; if the financial instrument has suffered credit
impairment since the initial recognition, it is in the Stage 3, and the Company measures the provisions
for loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the date of balance sheet, the Company assumesthat the credit risk has not increased significantly since the initial recognition, and the Companymeasures the provisions for loss according to the 12-month expected credit loss.
For financial instruments with low credit risk in the Stage 1 and Stage 2, the Company shallcalculate the interest revenue according to the book balance and effective interest rate before deductingthe provisions for impairment. For financial instruments in the Stage 3, the Company shall calculate theinterest revenue according to the amortized cost and effective interest rate of the book balance afterwithdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is a major financing, theCompany shall always consider all reasonable and sound information, including prospective information,to estimate expected credit loss of the above accounts receivable individually or in combination andadopt the simplified model of expected credit loss. The Company shall always measure the provisionsfor loss according to the lifetime expected credit loss.
1) Accounts receivable
① If there is objective evidence indicating that impairment has occurred in an account receivable,impairment test shall be carried out separately on it, such as accounts receivable in dispute withcounterparties or involved in litigation or arbitration; If there is obvious indication that the debtor is likelyto fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debtprovisions shall be made based on the balance between the present value of future cash flows and itsbook value.
② If there is no objective evidence indicating that impairment or the credit loss of a single financialassets cannot be evaluated at reasonable cost, the accounts receivable shall be classified into severalgroups by characteristics of credit risk. The expected credit loss shall be calculated based on thecombinations. Basis for determining the combinations is as below:
Item Determinationbasis
Bank acceptancebillgroup Bankacceptancebill
Commercial acceptancebillsgroup Commercialacceptancebills
Accountsreceivablegroup Receivablesfromrelatedparties
Accountsreceivablegroup Externalcustomer
Other accountsreceivablegroup Receivablesfromandpayablestorelatedparties
Other accountsreceivablegroup Reservefund,depositsandotherreceivableswithlowcreditrisk
Other accountsreceivablegroup Otheramounts
For accounts receivable divided into risk groups, the Company, with reference to historicalexperience in credit loss and based on current situation and forecast of future economic situation, shallprepared a comparison table between the aging of accounts receivable and the lifetime expected credit
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loss rate to calculate the expected credit losses. For other groups, the Company, with reference to
historical experience in credit loss and based on current situation and forecast of future economic
situation, shall calculate the expected credit losses according to the exposure at default and the
12-month or lifetime expected credit loss rate.
2) Creditors investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected creditloss according to the nature of investment, types of counterparty and risk exposure, exposure at defaultand the 12-month or lifetime expected credit loss rate.
The Company shall record the provision or reversal for loss made or recorded into current profit orloss. For investment in debts instruments at fair value through other comprehensive income, theCompany shall adjust other comprehensive income when the impairment loss or gain is recorded intocurrent profit or loss; for financial assets measured at amortized cost, the provision for loss shall offsetthe book value of such financial assets.
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finishedproducts, goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing liquor are measured at actual cost and pricedby weighted average method when sent out; paper, printing ink, and auxiliary materials for producingprinted matters are measured at planned cost when purchased and sent out, with the difference betweenactual cost and planned cost recorded into “materials cost difference”. The difference to be amortized bythe materials sent out shall be calculated by materials cost difference by category at the end of themonth, so as to adjust cost of the materials sent out into actual cost; goods in process,self-manufactured semi-finished products, and finished products are measured at actual cost and pricedby weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision ofinventory falling price reserves
On the date of balance sheet, the inventories shall be measured at the lower of cost and netrealizable value. If cost of the inventories is higher than the net realizable value, a provision for inventoryfalling price reserves shall be made and recorded into current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion,estimated selling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidenceobtained and after taking into consideration the purpose for which the inventory is held, and the impact ofpost-balance sheet events. Materials held for use in the production of inventories are measured at cost ifthe net realizable value of the finished products in which they will be incorporated is higher than theircost; decline in the price of materials indicates that the cost of the finished products exceeds their netrealizable value, the materials are measured at net realizable value. The net realizable value of inventoryheld to satisfy sales or service contracts is based on the contract price. If the quantities held by anenterprise is higher than the quantities of inventories specified in sales contracts, the net realizable valueof the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory islower than the cost.
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1) Market price of the inventory declines continuously and there is no hope of rising in theforeseeable future.
2) The cost of products produced by the Company with such raw materials is higher than theselling price of the product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade ofproducts, and the market price of the raw material is lower than the book cost.
4) The market price declines gradually due to obsolete goods or service provided by the Company,or change of market demands due to change of consumer preference.
5) Other circumstances which are sufficient to prove substantial impairment of the inventory.
The Company shall usually determine the falling price reserves of inventories on an item-by-itembasis. For inventories in large amount and low unit price, provision for inventory falling price reservesmay be made by category of the inventories. For item of inventories relating to a product line that isproduced and marketed in the same geographical area, have the same or similar end uses or purposes,and cannot be practically measured separately from other items, provision for inventory falling pricereserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the date of balance sheet.When factors causing written-down of the inventory value disappear, the amount written down shall berecovered and will be reversed from the provided inventory falling price reserves. The amount reversedwill be recorded into current profit or loss.
(4) Inventory system
The inventory system is a perpetual inventory system.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.12. Assets held for sale
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the followingconditions as assets held for sale: ① Assets or disposal groups can be sold immediately under currentconditions based on the practice of selling such assets or disposal groups in similar transactions; ②Sales are highly likely to occur, that is, the Company has already made a resolution on a sale plan andobtained a certain purchase commitment, and the sale is expected to be completed within one year.
Non-current assets or disposal groups specifically obtained by the Company for resale shall beclassified by the Company as held-for-sale on the acquisition date when they meet the stipulatedconditions of “expected to be sold within one year” on the acquisition date, and may well satisfy thecategory of held-for-sale within a short time (which is usually 3 months).
If the transaction between non-related parties fails to be completed within one year due to one ofthe following circumstances which is over the control of the Company, and the Company still promises tosell the non-current assets or disposal groups, the Company should continue to classify the non-currentassets or disposal groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditionsthat lead to extension of the sale. The Company has already acted on these conditions in a timelymanner and it is expected to be able to successfully deal with the conditions that led to the extension ofthe sale within one year after the conditions were set; 2) Due to unusual circumstances, the non-currentassets or disposal groups held-for-sale failed to be sold within one year. In the first year, the Companyhas taken necessary measures for these new conditions and the assets or disposal groups meet theconditions of held-for-sale again.
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(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups heldfor sale on the date of balance sheet, if the book value is higher than the fair value minus the net amountof the sale costs, the book value will be written down to the net amount of fair value minus the sale costs.The amount written down will be recognized as asset impairment loss and recorded into current profitand loss, and provision for impairment of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall bemeasured at the lower of net amount of initial measurement amount minus sales cost and that of fairvalue minus selling expenses, assuming they were not classified as held-for-sale during initialmeasurement. Except for non-current assets or disposal groups acquired from business combination,the difference arising from taking the net amount of fair value minus sales cost as initial measurementamount of the non-current assets or disposal groups shall be recorded into current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the bookvalue of goodwill of the disposal groups shall be offset first, and then the book value of variousnon-current assets in the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject todepreciation or amortization. Interest and other expenses of liabilities in the disposal group held for saleshall still be recognized.
2) Accounting treatment for reversal of asset impairment loss
If the net amount that the fair value of the non-current assets held for sale on the follow-up balancesheet date minus the sale costs increases, the previous written-down amount will be restored andreversed from the asset impairment loss recognized after the assets being classified as held-for-sale.The reversed amount shall be recorded into the current profit or loss. The asset impairment lossrecognized before being classified as held-for-sale shall not be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balancesheet date minus the sale costs increases, the previous written-down amount will be restored andreversed from the asset impairment loss recognized for non-current assets after the assets beingclassified as held-for-sale. The reversed amount will be recorded into the current profit or loss. The bookvalue of goodwill which had been written down and the asset impairment loss recognized before beingclassified as held-for-sale shall not be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which isreserved subsequently, the book value shall be increased according to the proportion of book value ofvarious non-current assets (except for goodwill) in the disposal groups.
3) Accounting treatment for assets no longer classified as held-for-sale and derecognition
When a non-current assets or disposal group ceases to be classified as held-for-sale or anon-current asset is removed out from the disposal group held for sale due to failure in meeting theclassification conditions for the category of held-for-sale, it will be measured by one of the followings,whichever is lower: ① Amount after adjusting the book value before being classified as held for saleaccording to the depreciation, amortization or impairment that would have been recognized under theassumption that it was not classified as held for sale; ② The recoverable amount.
The gain or loss not yet recognized shall be recorded into current profit or loss when recognizingthe non-current assets or disposal groups held for sale.
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13. Long-term equity investment
(1) Determination of initial investment cost
① Long-term equity investment from business combination
1) For the long-term equity investment acquired through business combination involvingenterprises under the same control, the share of the book value of the owners’equity of the combinedparty in the ultimate controller’s consolidated financial statements on the date of combination shall betaken as the initial investment cost of the long-term equity investment. The capital stock premium of thecapital reserve shall be adjusted with the difference between the initial investment cost of the long-termequity investment and the book value of the consideration paid; If the capital stock premium of the capitalreserve is insufficient for writing down, the retained earnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinationsinvolving enterprises not under the same control, initial investment cost of the investment shall be the fairvalue of the assets paid, liabilities incurred or assumed and equity securities issued by the Company inexchange for control over the acquiree on the date of acquisition. For long-term equity investment insubsidiaries acquired through business combination involving enterprises not under the same controlimplemented by multiple transactions, the initial investment cost shall be the sum of the book value ofequity investment held by the Company in the acquiree before the date of acquisition and the cost ofnew investment on the date of acquisition.
② For long-term equity investment acquired by cash payment, the initial investment cost shall bethe purchase price actually paid. The initial investment cost includes fees, taxes and other necessaryexpenses directly related to acquire the long-term equity investment.
③ For long-term equity investment acquired by issuing equity securities, the initial investment costof long-term equity investment obtained by issuing of equity securities shall be the fair value of issuingthe equity securities.
④ The initial investment cost of long-term equity investment obtained by the exchange ofnon-monetary assets shall be the fair value of the assets surrendered and relevant taxes payable if theexchange of non-monetary assets has commercial nature and the fair value of the assets received orsurrendered may be reliably measured, unless there is conclusive evidence providing that fair value ofthe assets received is more reliable; For exchange of non-monetary assets not meeting the aboveconditions, the initial investment cost shall be the book value of the assets surrendered and relevanttaxes payable.
⑤ The initial investment cost of a long-term equity investment obtained by debt restructuring shallbe recognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equityinvestment calculated by cost method shall be priced at the initial investment cost. The cost of long-termequity investment shall be adjusted when the investment is added or recovered. The cash dividends orprofits declared to be distributed by the invested company should be recognized as current investmentincome.
The long-term equity investment in associates and joint ventures is accounted by the equitymethod.
If the initial cost of long-term equity investment is greater than the fair value of identifiable netassets of the invested company gained from the investment, the initial cost of long-term equityinvestment shall not be adjusted; If the initial investment cost is smaller than the fair value of identifiable
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net assets of the invested company gained from the investment, the difference shall be recorded into
current profit or loss, and the cost of long-term equity investments shall be adjusted.
After the Company obtains a long-term equity investment, it shall, in accordance with the share ofthe net profits and other comprehensive income of the invested company to be enjoyed or shared,recognize the investment income and other comprehensive income respectively, and adjust the bookvalue of the long-term equity investment. The Company shall, in accordance with the share in the profitsor cash dividends declared and distributed by the invested company, decrease the book value of thelong-term equity investment accordingly.
As for other changes in owners’equity except for the net profit and loss, other comprehensiveincome and profit distribution of the invested company, the Company shall adjust the book value of thelong-term equity investment and record it into the owners’equity. When the share of the net profit or lossof the invested company is recognized, the net profit of the invested company shall be adjusted andrecognized according to the fair value of the net identifiable assets of the invested company when theinvestment is made.
For the transactions between the Company and associates and joint ventures, the unrealized gainsand losses of the internal transactions shall be offset by the proportion attributable to the Company, andthe investment income is recognized accordingly. The unrealized loss of internal transactions incurred bythe Company and the invested company attributable to asset impairment loss shall not be offset.
The Company shall recognize the net losses of the invested company until the book value of thelong-term equity investment and other long-term rights and interests which substantially form the netinvestment made to the invested company are reduced to zero, unless the Company has the obligationto undertake extra losses. If the invested company realizes a net profit in the subsequent period, theCompany shall restore the recognition of its share in profits after its share in profits offsets the share inunrecognized losses.
If the accounting policy and accounting period adopted by the invested company is inconsistentwith those adopted he Company, financial statements of the invested company shall be adjusted andinvestment income and other comprehensive income shall be recognized according to the accountingpolicy and accounting period of the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the book value and the actualprice at which the investment is obtained shall be recorded into current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investmentoriginally recorded into other comprehensive income shall be accounted for on the same basis as theinvested company’s direct disposal of the relevant assets or liabilities when disposed. The owners’equityrecognized as a result of changes in other owners’equity other than net profit or loss, othercomprehensive income, and profit distribution of the invested company is carried forward proportionallyinto current profit or loss, except for other comprehensive income arising from changes due toremeasurement of net liabilities or net assets of the defined benefit plan.
In case of loss of common control or significant influence on the invested company due to disposalof part of the equity investments, residual equity will be accounted by the recognition and measurementcriterion for financial instruments. The difference between the fair value on the date of losing commoncontrol or significant influence and the book value shall be recorded into current profit or loss. Othercomprehensive income recognized due to accounting of the original equity investment by equity methodshall be accounted for on the same basis as the invested company’s direct disposal of the relevant
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assets or liabilities when stop using equity method. Owner’s equity recognized due to other changes in
other owners’equity other than the net profit or loss, other comprehensive income and profit distribution
of the invested company will all be carried forward into current profit or loss when stop using equity
method.
If the Company disposes of part of the equity investment and loses control over the investedcompany, and if the remaining equity after disposal can implement joint control or exert significantinfluence on the invested company, it shall be accounted for using the equity method when the individualfinancial statements are prepared, and the equity shall be adjusted as if the remaining equity had beenaccounted for using the equity method since acquired; if the remaining equity after disposal cannotimplement joint control or exert significant influence on the invested company, it shall be subject toaccounting treatment in accordance with the relevant provisions of the criteria for recognition andmeasurement of financial instruments. The difference between the fair value and the book value on thedate of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such asadditional investment, the remaining equities after the disposal shall be calculated based on the costmethod or equity method in preparing the individual financial statements, and other comprehensiveincome and other owners' equity recognized because of the equity method adopted for the calculation ofthe equity investment held prior to the purchase date are carried forward in proportion; if the remainingequities after the disposal shall be changed to be accounted in accordance with the recognition andmeasurement criterion for financial instruments, other comprehensive income and other owners' equityshall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested company
Common control means common control over an arrangement according to relevant provisions,and the decision-making for relevant activities of such arrangement needs unanimous agreement of allparticipants sharing the control.
Significant influence means having the power to participate in decision-making of the financial andoperating policies of the invested company, but not the power to control or jointly control the formulationof these policies together with other parties.
14. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services,renting or operation and management and with service life more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, andother expenditure incurred before and for making the fixed assets reaching its intended condition for usedirectly attributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred beforeand for making the fixed assets reaching its intended condition for use.
Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be recorded into the cost of fixed assets ifmeeting the recognition conditions for fixed assets, and shall be recorded into current profit or loss if notmeeting the recognition conditions for fixed assets.
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(2) Depreciation method
Category Depreciationmethod Depreciationlife Residualrate Yearlydepreciation
rate
Housesandbuildings Straight-linemethod 25-30years 3%-5% 3.17-3.88%
Generalequipment Straight-linemethod 10-12years 3%-5% 7.92-9.70%
Specialequipment Straight-linemethod 8years 3%-5% 11.18-12.13%
Transportation Straight-linemethod 6years 3%-5% 15.83-16.17%
equipment
Otherequipment Straight-linemethod 6years 3%-5% 15.83-16.17%
(3) Recognition basis, valuation and depreciation methods of fixed assets under financing lease
The fixed assets under financing lease are recognized if one of the following conditions is specifiedby the Company and the leaser in their lease agreement:
① Upon the expiration of the lease term, the ownership of the leased asset belongs to the Company;
② The Company has the option to purchase the asset and the purchase price is far lower than the fair
value of such asset at the time of exercising the option;
③ The lease term covers most of the useful life of the leased asset;
④ There is no large difference between the present value of the minimum lease payments on the
commencement date of lease and fair value of the assets.
On the commencement date of lease, book value of the leased assets is the lower of the fair value of the
leased assets and the present value of the minimum lease payments, and minimum lease payments
shall be taken as the book value of the long-term payables, with the difference recognized as
unrecognized financing costs.
15. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessaryexpenditures incurred before the assets reaching its intended condition for use.
(2) Cost of fixed assets that have reached the intended condition for use but for which thecompletion settlement has not been handled shall be recognized at the estimated value, anddepreciation shall be provided; Adjustment shall be made to the originally and provisionally estimatedvalue based on the actual cost after the completion settlement is handled, but depreciation alreadyprovided shall not be adjusted.
16. Borrowing costs
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition andconstruction or production of fixed assets, investment properties and inventories meeting the conditionsof capitalization period and capitalization amount should be capitalized and recorded into the cost ofsuch assets; other interest of borrowings, and amortization of discounts or premiums shall be recordedinto expenses in current period. The exchange differences incurred from special foreign currencyborrowings for acquisition and construction or production of fixed assets and investment properties shallbe capitalized and recorded into the cost of such assets if it is within the capitalization period. Auxiliaryexpenses for special borrowings, if incurred before the fixed assets acquired or constructed reaching the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
intended condition for use, shall be capitalized at the time of occurrence; other auxiliary expenses shall
be recognized as expenses in current period and recorded into current profit or loss.
(2) Capitalization period of borrowing costs:
① Commencement of capitalization: Capitalization of borrowing interest, amortization of discountor premium, and exchange differences shall be commenced when all the following conditions are met.
1) Asset expenditure has already occurred.
2) Borrowing costs have already occurred.
3) Acquisition and construction activities necessary to bring the assets to the intended conditionfor use have already begun.
② Suspension of capitalization: Where the acquisition and construction of a fixed asset isinterrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended and the borrowing costs shall be recognized as current expensesuntil recommencement of the acquisition and construction of the asset.
③ Termination of capitalization: When the fixed assets acquired and constructed reach theintended condition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be theamount of interest expenses actually incurred in the current period less the interest revenue of theborrowings unused and deposited in bank or the amount of investment income from temporaryinvestment. Interest of general borrowings to be capitalized should be calculated by multiplying theweighted average of asset disbursements of the excess of accumulated asset disbursements over thespecial borrowings by the capitalization rate of used general borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.17. Intangible assets
(1) Valuation method, service life and impairment test
① Valuation and amortization of intangible assets: Externally acquired intangible assets shall bemeasured at the actual cost when acquired and averagely amortized during the expected service lifesince the month when the intangible assets is acquired; book value of the self-developed intangibleassets shall be the sum of the expenditures during the research and development stage of internalresearch and development projects of the Company which are eligible for capitalization and theexpenditures incurred before reaching the intended condition for use, and be averagely amortized overthe expected service life since the month in which the intangible asset is ready for use.
② Service life: Service life of intangible assets shall be analyzed and determined when acquired.Intangible assets with limited service life shall be amortized over period during which they may bringeconomic interests; if the period during which the intangible assets may bring economic benefit to theenterprise is unforeseeable, such intangible assets shall be considered as intangible assets withuncertain service life and shall not be amortized.
③ Impairment test: At the end of each year, the Company shall recheck the service life andamortization method of the intangible assets. Intangible assets with uncertain service life shall be subjectto impairment test every year whether there is any indication of impairment.
(2) Accounting policy for internal research and development expenditures
The expenditures of the Company’s internal research and development projects are divided into
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research phase expenditures and development phase expenditures.
Research phase expenditures shall be recorded into current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets onlywhen meeting all of the following conditions, otherwise shall be recorded into current profit or loss whenincurred:
② It is technically feasible to complete this intangible assets so that it can be used or sold.
② Have the intention to complete the intangible assets and use or sell them.
③ The way in which intangible assets generate economic benefits, including the ability to provethat the products produced using the intangible assets exist in the market or the intangible assetsthemselves exist in the market, and the intangible assets will be used internally, can prove theirusefulness; Sufficient technical, financial resources and other resources support to complete thedevelopment of the intangible asset and the ability to use or sell the intangible asset; the expenditureattributable to the development stage of the intangible asset can be reliably measured.
18. Long-term asset impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress,intangible assets, and other long-term assets measured at cost model, if there are signs of impairment,an impairment test shall be conducted on the date of balance sheet. If the recoverable amount of theasset is less than its book value according to the test, provision for impairment will be made at thedifference and recorded into impairment loss. Recoverable amount is the higher of the net amount of fairvalue of an asset deducting the disposal expenses and the present value of estimated future cash flow ofthe asset. The provision for impairment of assets is calculated and made on an individual basis. If it isdifficult for the Company to estimate the recoverable amount of the individual asset, the recoverableamount of an asset group, to which the said asset belongs, shall be determined. Asset group is thesmallest asset group that can independently generate cash inflows.
For goodwill, impairment test shall be conducted at least at the end of each year. Impairment testshall be carried out in combination with the relevant asset group or combination of asset group.
The book value of goodwill caused by business combination is amortized to relevant asset groupswith a reasonable method from the date of acquisition when the Company carries out impairment test ongoodwill; or amortized to relevant combination of asset groups if it is difficult to be amortized to relevantasset groups. When the book value of goodwill is amortized to the relevant assets group or combinationof assets groups, it shall be evenly amortized according to the proportion of the fair value of each assetsgroup or combination of assets groups in the total fair value of the relevant assets groups orcombinations of assets groups. Where the fair value cannot be reliably measured, it should be amortizedaccording to the proportion of the book value of each asset group or combination of assets groups in thetotal book value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groupscontaining goodwill, if any indication shows that the assets groups or combinations of assets groups maybe impaired, the Company shall first conduct an impairment test on the assets groups or combinations ofassets groups not containing goodwill, calculate the recoverable amount and compare it with relevantbook value to recognize the corresponding impairment loss. Then the Company shall conduct animpairment test on the assets groups or combinations of assets groups containing goodwill, andcompare the book value of these assets groups or combinations of assets groups (including the bookvalue of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amountof the relevant assets groups or combinations of assets groups is lower than the book value thereof, the
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Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods oncerecognized.
19. Long-term deferred expenses
Long-term deferred expenses is recorded according to the actual amount incurred and amortizedover the benefit period or the stipulated amortization period by the straight-line method. If a long-termdeferred expense item cannot benefit a later accounting period, the amortized value of the item that hasnot been amortized shall be transferred to the current profit or loss; long-term deferred expenses suchas expenditure for improvement of fixed assets under operating lease shall be amortized averagelywithin the benefit period.
20. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation refers to the payroll which is expected to be paid in full by the enterprisewithin 12 months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-termcompensation is recognized as liabilities and recorded into current profit or loss or costs of relevantassets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by theenterprise after retirement from or termination of the labor relation with the enterprise in exchange for theservice provided by the employee. Post-employment benefits are divided into two types: Definedcontribution plans and defined benefit plans.
① Defined contribution plan: Contribution which shall be made by the Company separately on thedate of balance sheet in exchange for the service provided by the employee during the accountingperiod shall be recognized as payroll liabilities and recorded into current profit or loss or relevant assetcost.
② Defined benefit plan: Based on the formula determined by expected cumulative welfare unitmethod, the benefit obligations arising from the defined benefit plan shall be attributable to the period inwhich the employee provides service and recorded into current profit or loss or cost of relevant asset;changes due to remeasurement of the net liabilities or net assets of the defined benefit plan shall berecorded into other comprehensive income and shall not be reversed to profit or loss in subsequentaccounting periods.
(3) Accounting treatment of dismission benefits
Dismission benefits refers to the compensation paid to the employee by the enterprise fortermination of the labor contract with the employee prior to expiration, or encouraging the employee toaccept downsizing voluntarily.
If the enterprise provides dismission benefits, payroll liabilities arising from dismission benefits shallbe recognized and recorded into current profit or loss on the earlier date of:
① The date when the enterprise could not unilaterally withdraw the dismission benefits whichoffered by the plan or layoff proposal due to termination of the labor relation.
② The date when the enterprise recognizes the cost or expense related to the reorganization
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related to payment of the dismission benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration,post-employment benefits, and dismission benefits, including long-term paid absences, long-termdisability benefits, long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized andmeasured as net liability or net asset of other long-term employee benefits according to relevantprovisions of the defined benefit plan, except for those meetings the conditions of defined contributionplan.
21. Estimated liabilities
(1) Recognition criteria for estimated liabilities
When obligations related to contingencies meet the following conditions, the Company shallrecognize them as estimated liabilities:
① The obligation is the current obligation assumed by the Company.
② The performance of this obligation may result in the outflow of economic benefits.
③ The amount of this obligation can be reliably measured.
(2) Measurement method of estimated liabilities
Considering the risks, uncertainties, and time value of money related to contingencies, theestimated liabilities shall be initially measured at the best estimate of the required expenditure for theperformance of current obligation. If the time value of money is significant, the best estimate shall bedetermined after discounting relevant future cash outflow. The Company shall check the book value ofthe estimated liabilities on the date of balance sheet, and adjust the book value to reflect current bestestimate.
22. Revenue
Whether new revenue standards have been implemented
□ Yes √ No
(1) Revenue from selling goods
Revenue shall be recognized when the following conditions are met: The Company has transferredthe substantial risks and rewards of ownership of the goods to the buyer; the Company retains neithercontinuous management right that usually keeps relation with the ownership nor effective control overthe sold goods; the amount of revenue can be measured reliably; the relevant economic benefits mayflow into the Company; and the relevant costs that have occurred or will occur can be measured reliably.
(2) Revenue from rendering service
Revenue from rendering service shall be recognized when the results of labor service transactionmeet the following conditions at the same time: The amount of revenue can be measured reliably; therelevant economic benefits may flow into the Company; the progress of the transaction can be reliablydetermined;and the relevant costs that have occurred or will occur in the transaction can be measuredreliably.
If the results of labor service transactions cannot be estimated reliably, they shall be treatedseparately as below: If the labor service costs incurred are expected to be compensated, the laborservice revenue is recognized according to the labor cost already incurred and labor cost is recognizedat the same amount. If the labor cost already incurred is not expected to be compensated, the labor cost
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
already incurred is included in profit or loss for the current period, and the revenue from the provision of
service is not recognized.
(3) Revenue from transfer of the right-of-use assets
Revenue shall be recognized when the following conditions are met: The economic benefits relatedto the transaction may flow into the Company; the amount of revenue can be measured reliably.
23. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by theCompany and used for acquisition or construction or for formation of long-term assets in other ways,including the financial allocation for purchasing fixed assets or intangible assets, the financial discountfor special loan of fixed assets and others.
The specific standard of the Company for classifying the government subsidies as asset-relatedsubsidies: government subsidies obtained by the Company and used for acquisition or construction orfor formation of long-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Companyclassifies the government subsidies as asset-related subsidies or income-related subsidies were asfollows: Whether the subsidies are used for acquisition or construction or for formation of long-termassets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Governmentsubsidies, when actually received, shall be recognized as deferred income and transferred equally tocurrent profit or loss based on the expected service life of the long-term assets when the long-termassets are available for use.
The asset-related government subsidies are recognized as deferred income, and recorded intocurrent profit or loss by stages based on the service life of the assets acquired and constructed. If therelated asset is sold, transferred, scrapped or damaged before the end of the service life, the deferredincome balance not yet distributed shall be transferred to the profits and losses of the period in which theassets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsides other than asset-relatedgovernment subsidies.
The specific criteria that the Company classifies government subsidies as income-related is: Othergovernment subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Governmentsubsidies, when actually received, shall be recorded into current profit or loss if used to compensate therelevant expenses or losses of the Company in the subsequent period; recorded into current profit orloss directly when acquired if used to compensate relevant expenses or losses incurred by theCompany.
Income-related government subsidies used to compensate the relevant expenses or losses of theCompany in the subsequent period shall be recognized as deferred income when acquired; recordedinto current profit or loss in the period in which relevant expenses are recognized; those used tocompensate relevant expenses or losses incurred by the Company, shall be directly recorded into profitor loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be recorded intoother incomes or used to offset relevant costs and expenses according to the substance of the economic
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
business. The government subsidies irrelevant with the daily activities of the Company shall be recorded
into non-operating revenue.
24. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognizedaccording to the difference (temporary difference) between the tax base and book value of the assetsand liabilities. Deductible losses that can be carried forward to the subsequent year to offset taxableincome according to the tax law shall be considered as temporary difference, and correspondingdeferred income tax assets shall be recognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferredincome tax liabilities shall not be recognized. For the temporary differences related to the initialrecognition of the assets or liabilities incurred in the transaction not for business combination that will notaffect the accounting profits and taxable income (or deductible losses), corresponding deferred incometax assets and deferred income tax liabilities shall not be recognized. The deferred income tax assetsand deferred income tax liabilities are measured on the date of balance sheet according to theapplicable tax rate in the period of expected recovery of relevant assets or liquidation of relevantliabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which theCompany may obtain for deducting deductible temporary differences, deductible losses and taxdeduction. Deferred income tax assets and deferred income tax liabilities arising from temporarydifferences related to the investment in subsidiaries and associates shall be recognized. If the time ofreversal of temporary differences can be controlled by the Company and the temporary differences arelikely to not be reversed in the foreseeable future, deferred income tax assets and liabilities shall not berecognized.
25. Leases
(1) Accounting treatment of operating lease
① The rents paid by the Company for leased assets are amortized with the straight-line method inthe whole lease term without deducting the rent-free period and recorded into current expenses. Initialdirect costs related to leasing transaction and paid by the Company shall be recorded into currentexpenses.
Where an asset lessor has assumed the lease-related costs that should be assumed by theCompany, the Company shall deduct such costs from the total rents, and the rents remained after suchdeduction shall be amortized in the lease term and recorded into current expenses.
② The rents received by the Company for leasing assets are apportioned on a straight-line basisover the entire lease term without deducting the rent-free period and are recognized as lease revenue.The initial direct costs related to lease transactions paid by the Company shall be included in the currentexpenses; if the amount is larger, they shall be capitalized and recorded into the current revenue on thesame basis as the recognition of lease revenue during the entire lease term.
Where the Company has assumed the lease-related costs that should be assumed by the leasee,the Company shall deduct such costs from the total lease revenue, and the rents remained after suchdeduction shall be amortized in the lease term.
(2) Accounting treatment of financial lease
① Assets leased in under financial leases: On the commencement date of lease, book value of
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
the leased assets is the lower of the fair value of the leased assets and the present value of the minimum
lease payments. The minimum lease payment is taken as the book value of the long-term payables, and
the difference between them is taken as unrecognized financing expenses. The Company adopts the
effective interest rate method for unrecognized financing charges, which shall be amortized over the
lease term and recorded into financial expenses. The Company records the initial direct expenses in the
values of leased assets.
② Assets leased out under finance leases: On the commencement date of lease, the Companyshall recognize the difference between the sum of the financial lease receivables and unguaranteedresidual values and its present value as unrealized financing income, and as lease revenue in any leaseperiod in the future when the rents are received. The initial direct expenses incurred by the Company inrelation to the lease transaction shall be recorded into the initial measurement of the financial leasereceivable and the amount of revenue recognized during the lease period shall be reduced.
26. Changes in significant accounting policy and accounting estimates
(1) Changes in significant accounting policy
√ Applicable □ Not applicable
Contentandreasonofchangesinaccountingpolicy Approval Remarks
procedures
Presentation offinancialstatement:TheMinistryofFinanceissued Refertothefollowingexplanationsfor
the NoticeonRevisingandPrintingFormatsofFinancial detailsoftheitemsintheFinancial
Statements forGeneralEnterprisesin2019(CK(2019)No.6)in Statements2018whichareaffectedby
April, 2019torevisetheformatoffinancialstatementsof retroactiveadjustment
enterprise.
Presentation offinancialstatement:TheNoticeonRevisingand
Printing FormatsofConsolidatedFinancialStatements(2019)(CK
(2019) No.16)revisedtheformatoffinancialstatementsof
enterprise.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Changes inaccountingpolicycausedbyimplementationofnew Accordingtotheprovisionsfor
financial instrumentstandards:TheMinistryofFinanceissuedthe transitionfromtheoldstandardstothe
AccountingStandardsfor BusinessEnterprisesNo.22- newstandards,informationofthe
RecognitionandMeasurementofFinancial Instruments(2017 comparableperiodisnotadjusted,and
Revision) (CK(2017)No.7),theAccountingStandardsforBusiness thebeginningretainedearningsor
EnterprisesNo.23 -TransferofFinancialAssets(2017Revision) othercomprehensiveincomeofthe
(CK (2017)No.8),theAccountingStandardsforBusiness reportingperiodwillbeadjusted
EnterprisesNo.24- HedgingAccounting(2017Revision)(CK(2017) retroactivelyforthedifferencebetween
No.9) onMarch31,2017,andtheAccountingStandardsfor thenewstandardsandtheoriginal
Business EnterprisesNo.37-PresentationofFinancialInstruments standardsonthedateofinitial
(2017 Revision)(CK(2017)No.14)(theabovestandards implementation.RefertotheNote“V.
collectively referredtoas“NewFinancialInstrumentStandards”) Significantaccountingpolicyand
on May2,2017,requiringenterpriseswhichweresimultaneously accountingestimates,26.(3)
listed abroadandathomeandwhichwerelistedabroadand Adjustmentofrelevantitemsin
prepared theirfinancialreportaccordingtotheInternational financialstatementsatthebeginningof
Financial ReportingStandards(IFRS)orthe theimplementationyearasaresultof
AccountingStandardsfor BusinessEnterprises(ASBE)to initialimplementationofnewfinancial
implement suchstandardssinceJanuary1,2018;andother instrumentstandards,newrevenue
domestic listedcompaniestoimplementsuchstandardssince standardsandnewleasestandards
January 1,2019. from2019”fordetailsaboutimpacton
the FinancialStatements2018
The impact of CK (2019) No.6 on the Financial Statements 2018 are presented below:
FinancialStatements2018(Consolidated) FinancialStatements2018(Parent
Item Company)
Before change Afterchange Beforechange Afterchange
Notes receivableandaccounts 16,261,973,287.83
receivable
Notes receivable 16,134,641,950.86
Accounts receivable 127,331,336.97
Notes payableandaccountspayable 3,566,293,179.83 175,000.00
Notes payable 413,918,369.11
Accountspayable 3,152,374,810.72 175,000.00
Asset impairmentloss 10,879,427.89 143,797.84
Asset impairmentloss(lossindicated -10,879,427.89 -143,797.84
with“-”)
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable(3) Adjustment of relevant items in financial statements at the beginning of the implementationyear as a result of initial implementation of new financial instrument standards, new revenuestandards and new lease standards from 2019
√ Applicable □ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Consolidated Balance Sheet
Unit: RMB
Item December31,2018 January01,2019 Amountofadjustment
Current assets:
Cash andcashequivalents 48,960,048,897.95 48,960,048,897.95
Settlement reserves
Capital lent
Trading financialassets
Financial assetsatfairvalue
through profitorloss
Derivative financialassets
Notes receivable 16,134,641,950.86 13,864,930,200.55 -2,269,711,750.31
Accounts receivable 127,331,336.97 127,331,336.97
Accounts receivable 2,269,711,750.31 2,269,711,750.31
financing
Prepayments 220,916,820.64 220,916,820.64
Premium receivable
Reinsurance receivables
Contract reserveof
reinsurance
Other receivables 871,770,375.85 871,770,375.85
Including: Interestreceivable 840,888,887.75 840,888,887.75
Dividends receivable
Purchase restitutedfinance
asset
Inventory 11,795,461,088.43 11,795,461,088.43
Contract asset
Assets heldforsale
Non-current assetsdue
within oneyear
Other currentassets
Total currentassets 78,110,170,470.70 78,110,170,470.70
Non-current assets:
Loans andadvances
Debt investment
Available-for-sale financial 1,200,000.00 -1,200,000.00
assets
Other debtinvestments
Held-to-maturity investment
Long-term receivables
Long-term equityinvestment 919,477,978.54 919,477,978.54
Other equityinstrument
investment
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Other non-currentfinancial 1,200,000.00 1,200,000.00
assets
Investment properties
Fixed assets 5,262,163,428.02 5,262,163,428.02
Construction inprogress 351,993,452.86 351,993,452.86
Productive biologicalassets
Oil andgasassets
Right-of-use assets
Intangible assets 412,650,156.71 412,650,156.71
Development expenditures
Goodwill 1,621,619.53 1,621,619.53
Long-term deferredexpenses 111,897,668.36 111,897,668.36
Deferred incometaxassets 871,859,716.03 871,859,716.03
Other non-currentassets 51,231,242.34 51,231,242.34
Total non-currentassets 7,984,095,262.39 7,984,095,262.39
Total assets 86,094,265,733.09 86,094,265,733.09
Current liabilities:
Short-term loans
Loan fromcentralbank
Capital borrowed
Trading financialliabilities
Financial liabilitiesatfair
value throughprofitorloss
Derivative financialliabilities
Notes payable 413,918,369.11 413,918,369.11
Accounts payable 3,152,374,810.72 3,152,374,810.72
Accounts receivedin 6,706,735,898.48 6,706,735,898.48
advance
Contract liability
Selling financialassetof
repurchase
Absorbing depositand
interbank deposit
Security tradingofagency
Security salesofagency
Payroll payable 2,769,295,510.19 2,769,295,510.19
Tax payable 5,080,135,497.74 5,080,135,497.74
Other payables 2,585,355,687.52 2,585,355,687.52
Including: Interestpayable
Dividend payable
Commission chargeand
commission payable
Reinsurance payables
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Liabilities heldforsale
Non-current liabilitiesdue
within oneyear
Other currentliabilities
Total currentliabilities 20,707,815,773.76 20,707,815,773.76
Non-current liabilities:
Insurance contractreserve
Long-term loans
Bonds payable
Including: Preferredshare
Perpetual bond
Lease liability
Long-term payable
Long-term payrollpayable
Estimated liabilities
Deferred income 267,010,618.22 267,010,618.22
Deferred incometaxliabilities
Other non-currentliabilities
Total non-currentliabilities 267,010,618.22 267,010,618.22
Total liabilities 20,974,826,391.98 20,974,826,391.98
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equityinstruments
Including: Preferredshare
Perpetual bond
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasurystock
Other comprehensiveincome
Special reserves
Surplus reserve 13,120,411,030.42 13,120,411,030.42
Provision forgeneralrisk
Undistributed profit 43,802,603,958.99 43,802,603,958.99
Total owners’equity
attributable toparent 63,487,270,080.56 63,487,270,080.56
company
Minority equity 1,632,169,260.55 1,632,169,260.55
Total owners’equity 65,119,439,341.11 65,119,439,341.11
Total liabilitiesand 86,094,265,733.09 86,094,265,733.09
owners’equity
Note on the adjustment:
The Company implemented the new financial standards from January 1, 2019 and adjusted theavailable-for-sale financial assets to other non-current financial assets according to the AccountingStandard for Enterprises No. 22 - Recognition and Measurement of Financial Instruments issued by the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Ministry of Finance.
Balance Sheet of Parent Company
Unit: RMB
Item December31,2018 January01,2019 Amountofadjustment
Current assets:
Cash andcashequivalents 20,666,489,987.76 20,666,489,987.76
Trading financialassets
Financial assetsatfairvalue
through profitorloss
Derivative financialassets
Notes receivable
Accounts receivable
Accounts receivablefinancing
Prepayments 73,237,561.54 73,237,561.54
Other receivables 12,135,135,681.28 12,135,135,681.28
Including: Interestreceivable 383,190,672.91 383,190,672.91
Dividends receivable 342,607,430.63 342,607,430.63
Inventory
Contract asset
Assets heldforsale
Non-current assetsduewithin
one year
Other currentassets
Total currentassets 32,874,863,230.58 32,874,863,230.58
Non-current assets:
Debt investment
Available-for-sale financial 1,200,000.00 -1,200,000.00
assets
Other debtinvestments
Held-to-maturity investment
Long-term receivables
Long-term equityinvestment 10,517,324,976.74 10,517,324,976.74
Other equityinstrument
investment
Other non-currentfinancial 1,200,000.00 1,200,000.00
assets
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Investment properties
Fixed assets 107,626,051.93 107,626,051.93
Construction inprogress 99,478,221.33 99,478,221.33
Productive biologicalassets
Oil andgasassets
Right-of-use assets
Intangible assets 40,573,281.24 40,573,281.24
Development expenditures
Goodwill
Long-term deferredexpenses
Deferred incometaxassets 100,889.03 100,889.03
Other non-currentassets
Total non-currentassets 10,766,303,420.27 10,766,303,420.27
Total assets 43,641,166,650.85 43,641,166,650.85
Current liabilities:
Short-term loans
Trading financialliabilities
Financial liabilitiesatfairvalue
through profitorloss
Derivative financialliabilities
Notes payable
Accounts payable 175,000.00 175,000.00
Accounts receivedinadvance
Contract liability
Payroll payable 1,267,974.86 1,267,974.86
Tax payable 36,702,690.98 36,702,690.98
Other payables 332,300,571.41 332,300,571.41
Including: Interestpayable
Dividend payable
Liabilities heldforsale
Non-current liabilitiesdue
within oneyear
Other currentliabilities
Total currentliabilities 370,446,237.25 370,446,237.25
Non-current liabilities:
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Long-term loans
Bonds payable
Including: Preferredshare
Perpetual bond
Lease liability
Long-term payable
Long-term payrollpayable
Estimated liabilities
Deferred income
Deferred incometaxliabilities
Other non-currentliabilities
Total non-currentliabilities
Total liabilities 370,446,237.25 370,446,237.25
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equityinstruments
Including: Preferredshare
Perpetual bond
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasurystock
Other comprehensiveincome
Special reserves
Surplus reserve 6,652,731,832.83 6,652,731,832.83
Undistributed profit 30,053,733,489.62 30,053,733,489.62
Total owners’equity 43,270,720,413.60 43,270,720,413.60
Total liabilitiesand 43,641,166,650.85 43,641,166,650.85
owners’equity
Note on the adjustment:
The Company implemented the new financial standards from January 1, 2019 and adjusted theavailable-for-sale financial assets to other non-current financial assets according to the AccountingStandard for Enterprises No.22 - Recognition and Measurement of Financial Instruments issued by theMinistry of Finance.
(4) Comparison data before the retrospective adjustments due to implementation of new
standards for financial instruments or new lease standards since 2019
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
VI. Taxes
1. Main taxes and tax rates
Tax Item TaxBasis TaxRate
VAT* Taxablesalesrevenue 13%,16%(paidafterdeductionofinput
taxes)
Consumption tax Taxablepriceorex-factoryprice 10%,20%
Urban maintenanceandconstruction Turnovertaxpayable 7%
tax
Corporateincometax Taxableincome 25%
Educationsurcharge Turnovertaxpayable 3%
Local educationsurcharge** Turnovertaxpayable 2%
*According to the Announcement of the Ministry of Finance, the State Taxation Administration andthe General Administration of Customs on Relevant Policies for Deepening the Value-Added Tax Reform(Announcement No. 39 [2019] of the Ministry of Finance, the State Taxation Administration and theGeneral Administration of Customs), VAT taxable sale or import of goods by a general VAT taxpayershall be adjusted to 13% from the original applicable tax rate of 16% since April 1, 2019.
**According to the Notice of the People’s Government of Sichuan Province on Printing theManagement Measures for Collection and Use of Local Education Surcharge (CFH [2011] No. 68)issued the People’s Government of Sichuan Province on April 2, 2011, entities and individuals payingvalue-added tax, business tax, and consumption tax within administrative regions of Sichuan Provinceshall pay local education surcharge at 2% of the amount of the “three taxes” actually paid.
Note on disclosure of taxpayer applying different corporate income tax rates:
Name oftaxpayer Incometaxrate
Sichuan YibinWuliangyeJingmeiPrintingCo.,Ltd. 15%
Sichuan YibinPlasticPackagingMaterialsCompany 15%
Limited
Sichuan YibinWuliangyeEnvironmentalProtectionCo., 15%
Ltd.
Yibin XinxingPackagingCo.,Ltd. 20%
Wuhou CulturalDevelopmentCo.,Ltd. 20%
Sichuan JiebeikeEnvironmentalTechnologyCo.,Ltd. 20%
Sichuan JinwuxinTechnologyCo.,Ltd. 20%
Yibin WuliangyeXinshengdaiLiquorCo.,Ltd. 20%
Sichuan WuliangyeTouristAgencyCo.,Ltd. 20%
2. Tax preference
(1) VAT
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificateof social welfare enterprise “FQZZ No. 51004121049” issued by the Department of Civil Affairs of
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sichuan Province. The Company, conforming to relevant provisions of GSF [2016] No. 33 and the Notice
on VAT Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and
the State Administration of Taxation (CS [2016] No. 52), enjoys the drawback policy of value-added tax.
Recoverable value-added tax of each month=Number of disabled person employed by the taxpayer in
current month×quadruple of the minimum wage of current month. The amount of value-added tax
refunded in 2019 was RMB 24,111,360.00.
According to the Notice of the Ministry of Finance and the State Administration of Taxation onPrinting the Catalog of Preferential Value-added Tax for Comprehensive Utilization of Resources andService (CS [2015] No. 78), the steam, white carbon black, lactic acid, and calcium lactate products soldby Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. and produced with waste distilled grainand pot bottom water for brewing can enjoy the 70% drawback policy for the value-added tax realizedsince July 1, 2015. The amount of value-added tax refunded in 2019 was RMB 5,166,722.30.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., conforming to the Notice of the StateAdministration of Taxation on Issues about Corporate Income Tax of Further Implementing the WesternDevelopment Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed withthe No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15% in 2018.
Sichuan Yibin Plastic Packaging Materials Company Limited, conforming to the Notice of the StateAdministration of Taxation on Issues about Corporate Income Tax of Further Implementing the WesternDevelopment Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed withthe No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15% in 2018.
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd., conforming to the Notice of the StateAdministration of Taxation on Issues about Corporate Income Tax of Further Implementing the WesternDevelopment Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed withthe No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays thecorporate income tax at 15% in 2018.
Yibin Xinxing Packaging Co., Ltd., Wuhou Cultural Development Co., Ltd., Sichuan JiebeikeEnvironmental Technology Co., Ltd., Sichuan Jinwuxin Technology Co., Ltd., Yibin WuliangyeXinshengdai Liquor Co., Ltd. and Sichuan Wuliangye Tourist Agency Co., Ltd. conform to the provisionsof the Notice on Implementing the Inclusive Tax Deduction Policy for Small and Micro Enterprises of theMinistry of Finance and the Statement Administration of Taxation (CS [2019] No. 13), which specifyingthat if the annual taxable income of small low-profit enterprises is less than RMB 1 million, the taxableincome shall be 25% of such annual taxable income and the corporate income tax rate shall be 20%; ifthe annual taxable income is more than RMB 1 million but less than RMB 3 million, the taxable incomeshall be 50% of such annual taxable income and the corporate income tax rate shall be 20%. Income taxrate shall be 20%.
VII. Notes to consolidated financial statements
1. Cash and cash equivalents
Unit: RMB
Item Endingbalance Beginningbalance
Cash onhand 28,179.40 48,306.24
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Bankdeposit 63,138,797,874.22 48,888,675,659.23
Othercashandcashequivalents 99,999,670.17 71,324,932.48
Total 63,238,825,723.79 48,960,048,897.95
Including:Totalamountoffunds
restricted inuseduetomortgage, 99,996,480.91 71,321,754.32
pledgeorfreezing
Other notes:
1. Other cash and cash equivalents include the balance of securities trading of RMB 3,189.26deposited with Yibin Business Department of Essence Securities, deposit of bank acceptance bill ofRMB 99,754,080.91, and other deposits of RMB 242,400.00.
2. There are no other funds being restricted in use due to mortgage, pledge or freezing except forthe other cash and cash equivalents above-mentioned; and there is no funds deposited abroad andbeing restricted in repatriation.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB
Item Endingbalance Beginningbalance
Bankacceptancebill 14,643,149,595.72 13,864,930,200.55
Total 14,643,149,595.72 13,864,930,200.55
Unit: RMB
Endingbalance Beginningbalance
Category Bookbalance BaddebtPprroovviissiioonnBookvalue Bookbalance BaddebtPprroovviissiioonnBookvalue
Amount Proportion Amount prop(%or)tion Amount Proportion Amount prop(%or)tion
bNaodtedserbetcperiovavbislieonwibthy14,643,149,595.72 100.00% 14,643,149,595.72 13,864,930,200.55 100.00% 13,864,930,200.55
combination
aIncccluedptinagn:ceBabnilkl14,643,149,595.72 100.00% 14,643,149,595.72 13,864,930,200.55 100.00% 13,864,930,200.55
Total 14,643,149,595.72 100.00% 14,643,149,595.72 13,864,930,200.55 100.00% 13,864,930,200.55
(2) Notes receivable pledged by the Company at the end of the period
The Company had no notes receivable pledged by the Company at the end of the period.(3) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date of balance sheet
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date ofbalance sheet
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform
The Company had no notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(5) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
3. Accounts receivable
(1) Disclosure of receivables by category
Unit: RMB
Ending balance Beginningbalance
Bookbalance Baddebtprovision Bookbalance Baddebtprovision
Category Provision Bookvalue Provision Bookvalue
Amount Proportion Amount proportion Amount Proportion Amount proportion
(%) (%)
Accounts receivable
with baddebt 1,508,250.71 1.05% 1,508,250.71 100.00% 683,959.77 0.50% 683,959.77 100.00%
provision bysingle
item
Including: External 1,508,250.71 1.05% 1,508,250.71 100.00% 683,959.77 0.50% 683,959.77 100.00%
customer
Receivables withbad
debt provisionby 142,604,157.15 98.95% 8,154,464.12 5.72% 134,449,693.03 135,861,345.01 99.50% 8,530,008.04 6.28% 127,331,336.97
combination
Including: External 88,029,978.68 61.08% 8,154,464.12 9.26% 79,875,514.56 84,110,685.83 61.60% 8,530,008.04 10.14% 75,580,677.79
customer
Related parties 54,574,178.47 37.87% 54,574,178.47 51,750,659.18 37.90% 51,750,659.18
Total 144,112,407.86 100.00% 9,662,714.83 6.70% 134,449,693.03 136,545,304.78 100.00% 9,213,967.81 6.75% 127,331,336.97
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Bad debt provision by single item:
Unit: RMB
Ending balance
Name Bookbalance Baddebtprovision Provision(%p)roportionReasonsforprovision
NWionlgfbxeiarrHyoPnrgozdhuocntsgnCion.g,Ltd. 516,135.60 516,135.60 100.00% Expectedirrecoverable
LNtadn.xiDaliangxinFoodCo., 389,729.12 389,729.12 100.00% Expectedirrecoverable
IHnudnuasntryLiCuoya.,nLgthde.Liquor 308,155.34 308,155.34 100.00% Expectedirrecoverable
CSiocmhumaondDityebCooD.,aLitlyd. 294,230.65 294,230.65 100.00% Expectedirrecoverable
Total 1,508,250.71 1,508,250.71 -- --
Bad debt provision by combination:
Unit: RMB
Ending balance
Name Bookbalance BpraodvidseiobntproPproorvtiiosinon(%)Rperaosvoisnisonfor
pArcocvoisuinotnsbreycceoivmabbilneawtioitnhobfaedxdteerbntal 88,029,978.68 8,154,464.12 9.26%
customer
pArcocvoisuinotnsbreycceoivmabbilneawtioitnhobfardedlaetebdt 54,574,178.47
parties
Total 142,604,157.15 8,154,464.12 -- --
Disclosure by aging
Unit: RMB
Aging Bookbalance
Within1year(inclusive) 129,855,743.16
1 to2years 5,990,669.43
2 to3years 1,537,218.35
More than3years 6,728,776.92
3 to4years 1,700,314.39
4 to5years 497,316.19
More than5years 4,531,146.34
Total 144,112,407.86
(2) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Amount ofchangeincurrentyear
Category BbeagliannncinegProvisions oRrerecoveversraylWrite-off Others bEanladnincge
pArcocvoisuinotnsbreycseiinvgalbeleitewmithbaddebt 683,959.77 864,735.83 13,812.99 54,257.88 1,508,250.71
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Aprcocvoisuinotnsbreycceoivmabbilneawtioitnhobfaedxdteerbntal8,530,008.04 -375,543.92 8,154,464.12
customer
Total 9,213,967.81 489,191.91 13,812.99 54,257.88 9,662,714.83
(3) Accounts receivable actually written off in current period
Unit: RMB
Item Write-offamount
LSthdi.jiazhuangQiaoxitangTobacco,AlcoholandFoodCo., 54,257.88
Total 54,257.88
(4) Accounts receivable with top 5 ending balances by debtor
Unit: RMB
Unitname aEccnoduinngtsbraelacenicveabolfeaePcncroodpuinongrtstbioranelacinnecitveoatboalfleEndidnegbbtaplraonvciseioonfbad
Sichuan ChinaTobaccoIndustryCo.,Ltd. 32,678,650.80 22.68% 1,633,932.54
Sichuan PutianTimesTechnologyCo.,Ltd. 31,324,539.34 21.74%
SBricehwuearnyYainbdinMWaurklieatninggyeCGo.r,oLutpd.Ecological9,512,479.81 6.60%
CCohe.,nLgtdd.uPUTHMedicalPlasticsPackaging 8,420,650.88 5.84%
Jiangsu DeruizhiInternationalTradeCo.,Ltd. 6,031,347.70 4.19% 301,567.39
Total 87,967,668.53 61.05%
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
4. Accounts receivable financing
(1) Presentation of accounts receivable financing by category
Unit: RMB
Item Endingbalance Beginningbalance
Bankacceptancebill 3,450,166,659.06 2,269,711,750.31
Total 3,450,166,659.06 2,269,711,750.31
The Company, based on the management purpose of notes receivable, classifies notes receivable for receiving contract cash flow and selling asfinancial assets measured at fair value with changes recorded into other comprehensive income.
Unit: RMB
Ending balance Beginningbalance
Category Bookbalance BaddebtPprroovviissiioonnBookvalue Bookbalance BaddebtPprroovviissiioonnBookvalue
Amount Proportion Amount prop(%or)tion Amount Proportion Amount prop(%or)tion
Awcitchobuandtsdreebctepivraobvilseiofinnabnycing
Asicncgoleunittesmreceivablefinancing
cwoitmhbbiandatdioenbtprovisionby 3,450,166,659.06 100.00% 3,450,166,659.06 2,269,711,750.31 100.00% 2,269,711,750.31
Including: Bankacceptancebill 3,450,166,659.06 100.00% 3,450,166,659.06 2,269,711,750.31 100.00% 2,269,711,750.31
Total 3,450,166,659.06 100.00% 3,450,166,659.06 2,269,711,750.31 100.00% 2,269,711,750.31
(2) Accounts receivable financing pledged by the Company at the end of the period
Unit: RMB
Item Endingpledgedamount
Bank acceptancebill 144,514,604.00
Total 144,514,604.00
Ntootthee: TBhaenkbaannkdathceceispstaunacnecebiollfpnleodtegsedinbsymtahlel aCmoomupnatnfoyraetxthteerneanldpoafytmheenptes.riod is mainly arising from the Company’s pledge of notes in large amount
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(p3e)rioAdccaonudnntsotrmecaetuivraebdleyeftinoanncthinegdaetnedoofrsbeadlanocredsishceoeutnted by the Company at the end of the
Unit: RMB
Item Amountderecognizedattheendofthe Amountnotyetderecognizedattheperiodendoftheperiod
Bankacceptancebill 918,471,579.06
Total 918,471,579.06
o(4f)thAecpceoruiondtsdrueecetoivfaabilluerfeinoafntchiengdrtarawnesrfetorrpeedrtfooramccounts receivable by the Company at the end
None.5. Prepayments(1) Prepayments presented by aging
Unit: RMB
Aging Endingbalance Beginningbalance
Amount Proportion Amount Proportion
Within 1year 136,286,439.94 58.77% 126,443,342.78 57.24%
1 to2years 6,819,475.06 2.94% 4,649,815.75 2.10%
2 to3years 1,127,071.75 0.49% 3,577,011.18 1.62%
More than3years 87,676,153.34 37.81% 86,246,650.93 39.04%
Total 231,909,140.09 -- 220,916,820.64 --
year:Reasons for non-timely settlement of prepayments in significant amount with the aging more than 1
Co., PLtrde.pfaoyrmtheentgsaws isthoutrhceeaagsinaggrmeeodre. than 1 year are mainly the prepayments to Yibin Guoding Gas
(2) Prepayments with top 5 ending balances by prepayment object
Unit: RMB
Unit name Endingbalance Proportioninendingbalanceofprepayments
Yibin GuodingGasCo.,Ltd. 72,922,000.00 31.44%
MSiactheuraianlsECnoe.r,gLytdIn.vestmentNewChemical 24,057,942.00 10.37%
Metro JinjiangCash&CarryCo.,Ltd. 16,686,600.00 7.20%
Jiangsu XingyePlasticCo.,Ltd. 16,146,570.00 6.96%
SSaicchrueadnMountainMolinGroupCo.,Ltd., 8,283,185.84 3.57%
Total 138,096,297.84 59.55%
6. Other receivables
Unit: RMB
Item Endingbalance Beginningbalance
Interestreceivable 1,215,275,214.91 840,888,887.75
Other receivables 33,369,357.49 30,881,488.10
Total 1,248,644,572.40 871,770,375.85
(1) Interest receivable
1) Classification of interest receivable Unit: RMB
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Item Endingbalance Beginningbalance
Interest offixedtermdeposit 1,215,275,214.91 840,888,887.75
Total 1,215,275,214.91 840,888,887.75
2) Provision for bad debt
□ Applicable √ Not applicable(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature ofreceivable Endingbookbalance Beginningbookbalance
Reservefund 6,792,778.95 8,689,924.59
LoanstoOrientalLOtdu.tlookMediaCo., 1,000,000.00
Currentaccount 7,027,439.51 8,298,069.83
Deposit 19,102,013.23 9,544,328.72
Otheradtevmanpcoeramryopneayymfoernotthersor 4,698,433.09 7,107,156.00
Total 37,620,664.78 34,639,479.14
2) Provision for bad debt
Unit: RMB
Stage 1 Stage2 Stage3
Baddebtprovision Exopveecrttehdeccroemdiitnlgos1s2esEthxepeecntetirdecdreudraittiloonss(nfoorExptheecteendtirceredduitralotisosnforTotal
months creditimpairment) (creditimpairmenthasoccurred)
B20a1la9nceonJanuary1, 3,725,731.41 32,259.63 3,757,991.04
B20a1la9nicnecounrreJanntupaerryio1d, -- -- -- --
--Transfer tostage3 -151,072.11 151,072.11
Provisions incurrentperiod 644,388.36 644,388.36
Write-off incurrentperiod 151,072.11 151,072.11
2B0a1la9nceonDecember31, 4,219,047.66 32,259.63 4,251,307.29
L□aArgpeplibcoaobkleb√alNanocteapcphlaicnagbelein the current period of provision for loss
Disclosure by aging
Unit: RMB
Aging Bookbalance
Within1year(inclusive) 22,545,268.61
1 to2years 8,814,667.35
2 to3years 1,502,892.66
More than3years 4,757,836.16
3 to4years 1,008,867.43
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
4 to5years 2,382,123.82
More than5years 1,366,844.91
Total 37,620,664.78
3) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Amount ofchangeincurrentyear
Category Beginningbalance Recovery EndingBalanceProvisionsor Write-off Others
Reversal
Osinthgelerrietecmeivableswithbaddebtprovisionby 32,259.63 151,072.11 151,072.11 32,259.63
cOrtehdeirtrriesckecivoambbleinsawtiiothnbaddebtprovisionby 3,725,731.41 493,316.25 4,219,047.66
Total 3,757,991.04 644,388.36 151,072.11 4,251,307.29
4) Other receivables actually written off in current period
Unit: RMB
Item Write-offamount
LinzhangCountyPowerSupplyBureauofHebeiProvince 151,072.11
Total 151,072.11
5) Other receivables with top 5 ending balances by debtor
Unit: RMB
Unitname rNecaetuivreabolefbEanladnincge Aging ePnrodpinogrtbioanlainncteotoaflEndingbalanceof
otherreceivables baddebtprovision
YUirbbiannC-RuiuprianlgDDeivsetrliocptmHoeunstiBnugraenaduDeposit 5,000,000.00 1-2years 13.29% 500,000.00
YUirbbiannM-RuunricailpDaelHveoluospimnge,ntandCity Deposit 5,000,000.00 Within1year 13.29% 150,000.00
Administration Bureau
CEnhgoinngeqeirninggXCiboo.l,eLstidB.uilding mAoodtnvheaeynrcsfoer1,671,340.32 4-5years 4.44% 835,670.16
SCuhbin-aCoMmopbailenyGroupSichuan Current 1,216,160.92 Wyitehainr;1 3.23% 42,995.00
Yibin Branch account 1-2years
CRM FoshanIronandSteelCo., yWeaitrh;in1-12
Ltd. Deposit 894,200.00 yeyaersa;rs2-3 2.38% 120,671.00
Total -- 13,781,701.24 -- 36.63% 1,649,336.16
7. Inventory
W□ Yheesth√erNnoew revenue standards have been implemented(1) Inventory classification
Unit: RMB
Ending balance Beginningbalance
Item Bookbalance FarellisnegrvpersiceBookvalue Bookbalance Fallingprice
reserves Bookvalue
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
maRtearwials 820,802,958.97 5,470,868.60 815,332,090.37 704,404,961.76 5,566,238.71 698,838,723.05
Gporoocdessisn920,929,926.83 920,929,926.83 820,750,667.60 820,750,667.60
Invgeonotodrsyof 2,641,768,788.26 23,606,759.68 2,618,162,028.58 1,628,219,456.72 22,125,947.87 1,606,093,508.85
mTuartneorivaelsr2,443,559.07 2,443,559.07 2,922,520.24 2,922,520.24
eSdemprio-fdinuicsths9,185,653,882.86 9,185,653,882.86 8,392,578,113.47 8,392,578,113.47
mPaatcekriinagls16,350,413.67 15,916,796.10 433,617.57 16,409,356.58 15,916,796.10 492,560.48
Gissouoedds 91,743,317.05 917,805.65 90,825,511.40 152,470,003.77 152,470,003.77
prWocoersksi-nou 45,838,998.73 45,838,998.73 57,909,918.97 57,909,918.97
tsourced
Gtoraondssitin 63,405,072.00 63,405,072.00
Total 13,725,531,845.44 45,912,230.03 13,679,619,615.41 11,839,070,071.11 43,608,982.68 11,795,461,088.43
(2) Inventory falling price reserves
Unit: RMB
Increaseincurrentperiod Decreaseincurrentperiod
Item Beginningbalance Reversedor EndingbalanceProvisionsOthers written-off Others
Rawmaterials 5,566,238.71 95,370.11 5,470,868.60
Invgeonotodrsyof 22,125,947.87 2,102,958.26 622,146.45 23,606,759.68
mPaatcekriinagls15,916,796.10 15,916,796.10
Goods issued 917,805.65 917,805.65
Total 43,608,982.68 3,020,763.91 717,516.56 45,912,230.03
(N3o)neN.ote on ending balance of inventory containing the capitalized amount of borrowing costs
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
8. Long-term equity investment
Unit: RMB
Increase/decreaseinthecurrentperiod Provisionfor
Invested company Beg(binonoinkgvablaulea)nceAdditionalinvestment Reduced Profitandlosson Adjuostthmeerntof Changes Declarationofcash Accrualof Endingbvaallaunec)e(book impairment
investment invweisthtmeeqnutistyremceotghnoidzedcomipnrceohmeensiveeinquoitthieesrdividendsorprofits imprpoavirismioenntOthers Endingbalance
I. Jointventures
II. Associates
Oriental OutlookMediaCo.,Ltd. 13,742,029.36 3,336,110.30 17,078,139.66
SFiincahnucaenCYiob.i,nLWtdu.liangyeGroup 905,735,949.18 89,122,537.57 994,858,486.75
YCiob.i,nLJtdia.meiIntelligentPackaging 9,800,000.00 42,105.18 9,842,105.18
Sub-total 919,477,978.54 9,800,000.00 92,500,753.05 1,021,778,731.59
Total 919,477,978.54 9,800,000.00 92,500,753.05 1,021,778,731.59
O1.theTrhneotCeos:mpany invested in Oriental Outlook Media Co., Ltd., an associate of the Company, for implementing the strategy of entering the mediaWindourlsdtbrye.sTt hGeroCuopm, SphaannygchoaniWtriobruldtebdesRtCMoB.,L1t7d..1a5nmd iSllihoannignhAaipTriila2n0c0h5e,ngacCqhuuirainnggy4e9%DeovfeltohpemeeqnutitCyoo.,f LOtdri.ental Outlook Media Co., Ltd. held by ChinaGrou2p. CoAmspraenvyieawnedd6anodf itaspspurobvseiddiabryiesth,ean2d2tAhBmCeIenttinegrnoaftiothneal4Hthobldoinagrds oLfimdiitreedctjoorisntolyf itnhveeCstoemd paanndyeosntaOblcistohbeedrth2e4,F2in0a1n2c,ethCeoCmopmapnay.nIyt,sWreugliisatnegreydecapit3a.l isIRnM2B0129b,ilSlioicnh,uaamnoYngibiwnhWichultihaengCyoemJpinagnmy ecionPtrriinbtuintegdCRoM.,BL0td.7.,2abihlloioldni,ntgaksinugbsuipdia3r6y%oof fththeeCreogmisptearneyd, caanpditaSlh. enzhen Jinjia New Intelligent
PCaoc.,kLatgdi.nigncCluod.,eLrteds.ejoairncthlyainnvdedsetevdelaonpdmeesntta, bplliastheemdaYkiibnign, JpirainmtienigI,npterollidguecnttioPnaacnkdagsianlgesCoof.,pLatcdk.aPgriinmgapryrobduuscitnse.sItssoref gYiisbtienreJdiamcaepiitIanlteislliRgeMnBt P2a0cmkailglioinng,
among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB 9.8 million, taking up 49% of the registered capital.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
9. Other non-current financial assets
Unit: RMB
Item Endingbalance Beginningbalance
SanicdhDuaenveClohpinmeesnetLCiqou.,oLrtJdi.nshanjiaoBrandOperation 1,200,000.00 1,200,000.00
Total 1,200,000.00 1,200,000.00
10. Fixed assets
Unit: RMB
Item Endingbalance Beginningbalance
Fixedassets 6,108,183,363.27 5,261,346,191.85
Disposaloffixedassets 562,549.45 817,236.17
Total 6,108,745,912.72 5,262,163,428.02
(1) Note on fixed assets
Unit: RMB
Item HbouuisldeisngasndSpecialequipment eqGueipnmereanlt TreaqnuspipomrteantitonOtherequipment Total
Iv.aOlureig:inalbook
b1.alBaengcienning7,827,986,487.58 3,474,240,996.44 2,133,958,310.77 117,138,942.46 620,678,629.49 14,174,003,366.74
c2u.rIrnecnretapseerioind1,156,260,065.06 80,931,708.99 89,319,869.62 6,819,421.06 25,942,180.76 1,359,273,245.49
(1) Acquisition 1,108,654,082.05 28,370,131.13 86,960,597.22 6,819,421.06 23,200,743.84 1,254,004,975.30
f(r2o)mTransfer
cporongsrteruscstionin 47,605,983.01 52,561,577.86 2,359,272.40 2,741,436.92 105,268,270.19
(fr3o)mInbcruesainseess
combination
3cu.rDreenctrepaesrieodin84,169,428.63 519,607,854.86 2,922,613.68 7,456,646.43 23,864,631.73 638,021,175.33
s(1c)raDpisposalor 84,169,428.63 519,607,854.86 2,922,613.68 7,456,646.43 23,864,631.73 638,021,175.33
4ba.lEanndcieng 8,900,077,124.01 3,035,564,850.57 2,220,355,566.71 116,501,717.09 622,756,178.52 14,895,255,436.90
IAI.ccumulated
1de.pBreegciinantiionng
b2a.lIannccreeasein 3,417,204,970.41 3,126,226,503.79 1,731,471,151.25 86,395,645.96 542,827,436.69 8,904,125,708.10
current period 228,003,046.58 111,280,599.43 49,193,686.07 6,744,751.65 23,184,612.31 418,406,696.04
(1) Provision 228,003,046.58 111,280,599.43 49,193,686.07 6,744,751.65 23,184,612.31 418,406,696.04
3cu.rDreenctrepaesrieodin15,166,643.55 497,466,621.24 2,536,142.93 6,862,770.75 21,959,618.83 543,991,797.30
s(1c)raDpisposalor 15,166,643.55 497,466,621.24 2,536,142.93 6,862,770.75 21,959,618.83 543,991,797.30
4ba.lEanndcieng 3,630,041,373.44 2,740,040,481.98 1,778,128,694.39 86,277,626.86 544,052,430.17 8,778,540,606.84
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
IfoIIr.Pimropvaiisrmionent
b1.alBaengcienning 1,544,029.33 5,860,320.21 656,514.70 470,602.55 8,531,466.79
2cu.rIrnecnretapseerioind
(1) Provision
3cu.rDreenctrepaesrieodin
s(1c)raDpisposalor
4ba.lEanndcieng 1,544,029.33 5,860,320.21 656,514.70 470,602.55 8,531,466.79
IV. Bookvalue
1va.lEunedingbook 5,268,491,721.24 289,664,048.38 441,570,357.62 30,224,090.23 78,233,145.80 6,108,183,363.27
b2.ooBkegvianlnuieng4,409,237,487.84 342,154,172.44 401,830,644.82 30,743,296.50 77,380,590.25 5,261,346,191.85
(2) FNioxneed. assets that are temporarily idle
(3) FNioxneed. assets under financing lease
(4) Fixed assets leased out by operating lease
Unit: RMB
Item Endingbookvalue
Buildings 135,816,415.80
Warehouse 1,797,109.38
Equipment 11,038,017.98
Total 148,651,543.16
(5) Fixed assets without certificate of title
Unit: RMB
Item Bookvalue Reasonfornotobtainingcertificateoftitle
Buildings 979,720,018.13 rTehaesocnesrt,iftiocawtehiocfhtitthleehCaosmnpoatnbyeehnasoabtttaaicnheedddgureeatotihmisptoorritcaanlce
and plannedtoobtainthecertificateoftitlegradually.
Buildings 54,686,456.36 Inprogress
Total 1,034,406,474.49
the pNrootpee: rAtyccoowrdnienrgshtoipthceerItniftiecaritme Raengdultahteionlanodn Rueseal cEesrttaiftiecaRteegaisretraitniotengorafteSdichinutaon tPhreovrienacle e2s0t1a6te,
oowf rneelersvhainpt caesrstiefitcsa. te. The Company is sorting out relevant assets and handling with the certificate of title
(6) Disposal of fixed assets
Unit: RMB
Item Endingbalance Beginningbalance
Specialequipment 47,860.19
Other equipment 562,549.45 769,375.98
Total 562,549.45 817,236.17
11. Construction in progress
Unit: RMB
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Item Endingbalance Beginningbalance
Constructioninprogress 810,667,169.54 350,232,362.79
Project goodsandmaterials 1,761,078.76 1,761,090.07
Total 812,428,248.30 351,993,452.86
(1) Construction in progress
Unit: RMB
Endingbalance Beginningbalance
Item Bookbalance PimropvaisiriomnefnotrBookvalue Bookbalance PimropvaisiriomnefnotrBookvalue
P30o0tt-eTrhyoJuasraAngdi-nTgonSpirit432,757,395.14 432,757,395.14 35,213,355.27 35,213,355.27
Room (PhaseI)
PWaurlkiaCngoynestIrnudcutiostnrial116,380,592.65 116,380,592.65 115,500,592.65 115,500,592.65
Project
FOathcetorrByuBiludiilndginsgsand
tRheenCoovamtipoannPyrojectof 26,482,983.09 26,482,983.09 11,436,881.51 11,436,881.51
RPiepceoNnsettrwuoctrikonProject 26,591,075.62 26,591,075.62 1,010,566.03 1,010,566.03
of JiangbeiPark
aNnod.4ReKcilonnUstprgurcatidoinng21,776,007.96 21,776,007.96 22,420,540.05 22,420,540.05
Project
UPanrdtiearllaOyverheadLines
oRfetchoenTsrtruuncktioRnoaPdroojefct 10,698,865.18 10,698,865.18 10,448,865.18 10,448,865.18
GthaeteEsastandWest
S(WonugliagnognygeRSiveecrtion)
CTroematpmreehnetnPsriovjeect 51,266,490.32 51,266,490.32
Other sporadicworks 178,380,255.45 2,400,005.55 175,980,249.90 105,335,077.33 2,400,005.55 102,935,071.78
Total 813,067,175.09 2,400,005.55 810,667,169.54 352,632,368.34 2,400,005.55 350,232,362.79
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Changes in important construction in progress in current period
Unit: RMB
tranAsmfeorurendtto deOcrtehaesres Proportion Accumulated CInacpliutadliinzge:dCapitalization
Projectname Budget BbeagliannncinegcuInrrcernetapseeriinodfixtehdeacsusrreetnstininpceurrioredntEndingbalance inopfuptrotojetchteEnpgroingereesrisngamintoeurnetstofainmteoruensttoinfratienocfuirnrteenrtestSofuunrcdesof
period budget(%) capitalized current periodDecreaseperiod
3P0o0tt-eTrhyoJuasraAngdi-nTgon857,070,000.00 35,213,355.27 397,544,039.87 432,757,395.14 50.49% 83.00% Own
Spirit Room(PhaseI) funds
WPaurlkiaCngoynestIrnudcutiostnrial229,980,000.00 115,500,592.65 880,000.00 116,380,592.65 51.37% 65.00% funOdswnand
Project subsidies
OFathcetorrByuBiludiilndginsgsand Own
RtheenCoovamtipoannPyrojectof 201,841,000.00 11,436,881.51 15,046,101.58 26,482,983.09 13.00% 13.00% funds
PRiepceoNnsettrwucotrikon Own
PPraorjkectofJiangbei 109,396,900.00 1,010,566.03 25,580,509.59 26,591,075.62 23.38% 90.00% funds
aNnod.4RKeiclnonUsptrgurcatdioinng48,496,000.00 22,420,540.05 3,463,332.58 4,107,864.67 21,776,007.96 53.37% 92.00% Own
Project funds
PLianretisalUOnvdeerrhlaeyad
PRreocjeocntsotrfutchteionTrunk17,600,000.00 10,448,865.18 250,000.00 10,698,865.18 60.79% 99.00% fOunwdns
WRoeasdtGofattheesEastand
(SWonugliagnognygeRSiveecrtion) Own
TCroematpmreehnetnPsriovjeect 93,568,300.00 51,266,490.32 10,964,395.63 62,230,885.95 66.51% 100% fsuunbdssidaiensd
Total 1,557,952,200.00 247,297,291.01 453,728,379.25 66,338,750.62 634,686,919.64 -- -- --
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(3) Project goods and materials
Unit: RMB
Ending balance Beginningbalance
Item Bookbalance PimropvaisiriomnefnotrBookvalue Bookbalance PimropvaisiriomnefnotrBookvalue
Projemctagteoroiadlssand 1,761,078.76 1,761,078.76 1,761,090.07 1,761,090.07
Total 1,761,078.76 1,761,078.76 1,761,090.07 1,761,090.07
12. Intangible assets
(1) Note on intangible assets
Unit: RMB
Item Landuseright Patents Non-patented Softwaresystem Technologyusetechnologyright Total
I. Originalbookvalue
1. Beginningbalance 481,060,308.32 55,096,019.13 10,318,357.82 546,474,685.27
2p.eIrniocdreaseincurrent 18,804,767.25 73,584.91 18,878,352.16
(1) Acquisition 18,804,767.25 73,584.91 18,878,352.16
(d2e)vIenltoeprnmaelnretsearchand
(b3u)sIinncersesacsoemfrboimnation
p3.eDrioedcreaseincurrent 2,366,675.00 2,366,675.00
(1) Disposal 2,366,675.00 2,366,675.00
4. Endingbalance 478,693,633.32 73,900,786.38 10,391,942.73 562,986,362.43
aIIm.Aocrctiuzamtiuolnated
1. Beginningbalance 99,726,688.08 23,779,482.66 10,318,357.82 133,824,528.56
p2.eIrniocdreaseincurrent 9,754,067.76 9,477,278.67 4,292.47 19,235,638.90
(1) Provision 9,754,067.76 9,477,278.67 4,292.47 19,235,638.90
p3.eDrioedcreaseincurrent 229,032.84 229,032.84
(1) Disposal 229,032.84 229,032.84
4. Endingbalance 109,251,723.00 33,256,761.33 10,322,650.29 152,831,134.62
iImII.pPariormviesniotnfor
1. Beginningbalance
p2.eIrniocdreaseincurrent
(1) Provision
p3.eDrioedcreaseincurrent
(1) Disposal
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
4. Endingbalance
IV. Bookvalue
1. Endingbookvalue 369,441,910.32 40,644,025.05 69,292.44 410,155,227.81
2. Beginningbookvalue 381,333,620.24 31,316,536.47 412,650,156.71
the CAotmthpeaneyndacocfocuunrrtsenfot rp0e.r0io0d%, tohfethinetabnaglaibnleceaossf eintstacnrgeiabtleedasbsyeitnst.ernal research and development of
(2) Note on land use right for which the certificate of title has not been obtained
Unit: RMB
Item Bookvalue Reasonfornotobtainingcertificateoftitle
Land useright 1,206,138.86 reTahseocnesr,ttioficwahteicohftthiteleChoamspnaontybeheansoabtttaacinheeddgdrueeattoimhpisotortraicnacle
and plannedtoobtainedthecertificateoftitlegradually
Total 1,206,138.86
13. Goodwill
(1) Original book value of goodwill
Unit: RMB
Nameofinvestedcompanyormattersforming Beginning Increaseincurrentperiod cDurercernetapseeriiond
goodwill balance EndingbalanceThroughbusiness
combination Disposal
CSioc.h,uLatdn.YibinGlobalGroupShenzhouGlass 37,535.96 37,535.96
SMiacnhuufaanctYuirbiningGCloo.b,aLltGd.elasiGlass 18,005.18 18,005.18
CSiocmhupaannyYiLbiimniPteldasticPackagingMaterials 666,461.77 666,461.77
Sichuan YibinPushGroup3DCo.,Ltd. 899,616.62 899,616.62
Total 1,621,619.53 1,621,619.53
14. Long-term deferred expenses
Unit: RMB
Item Beginningbalance Increaseincurrent Amountamortizedperiodtocurrentperiod Otherdecreases Endingbalance
Mold 93,695,939.35 30,026,977.59 45,183,869.83 78,539,047.11
expeOnvseershaouflkilns 10,713,282.75 4,733,974.80 5,979,307.95
Others 7,488,446.26 1,732,745.85 2,138,215.21 7,082,976.90
Total 111,897,668.36 31,759,723.44 52,056,059.84 91,601,331.96
OLothnegr-tneormtesd: eferred expenses include the molds of Sichuan Yibin Plastic Packaging MaterialsGColombaplanGyeLlaimsiiteGdl,asassuMbasniduiafarcytuorfinthgeCCoo.m, pLatdn.y,, wanhdichthewiollvebrehaauml eoxrptizeendsesino3f kiylnesarosf aSnicdhu4anyeYaibrsin,respectively.
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB
Endingbalance Beginningbalance
Item Deductibletemporary Deferredincometax Deductibletemporary Deferredincometax
differences assets differences assets
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Provisioonffaosrsiemtspairment 62,160,116.40 15,540,029.10 63,573,991.40 15,893,497.85
iUnnterrenaalilzteradnpsraocfittioonf459,631,885.88 114,907,971.47 275,304,408.32 68,826,102.08
Payrollpayable 3,444,231,749.08 861,057,937.27 2,635,865,912.20 658,966,478.05
Others 663,544,164.64 165,886,041.16 512,694,552.20 128,173,638.05
Total 4,629,567,916.00 1,157,391,979.00 3,487,438,864.12 871,859,716.03
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item Endingbalance Beginningbalance
Deductible temporarydifferences 9,104,208.09 4,445,022.47
Deductible losses 271,450,834.30 276,591,011.98
Total 280,555,042.39 281,036,034.45
deduNctoibtele: Dteume ptoorathrey udnifcfeerretanicnetys oaf nwdhedtehdeur cstuibffleicielonststeasxabolfe dinecfeormreed wiinllcobme eobttaaxineadssinetsthearfeutunroet,
recognized.
b(3e)coDmeedudcuteibilne thloesfsoelslowofingdeyfeearrresd income tax assets which have not been recognized will
Unit: RMB
Year Endingamount Beginningamount Remarks
Year2019 31,643,176.65
Year2020 4,604,961.02 16,170,861.31
Year2021 24,902,925.05 26,066,687.31
Year2022 90,071,724.12 91,589,312.45
Year2023 101,698,424.52 111,120,974.26
Year2024 50,172,799.59
Total 271,450,834.30 276,591,011.98 --
16. Other non-current assets
W□ Yheesth√erNnoew revenue standards have been implemented
Unit: RMB
Item Endingbalance Beginningbalance
Aidnvfoarnmceastioonfpsyrosgteremsscopnasytmruecntitofnor 165,284,283.25 51,231,242.34
Total 165,284,283.25 51,231,242.34
17. Notes payable
Unit: RMB
Type Endingbalance Beginningbalance
Bankacceptancebill 419,485,425.61 413,918,369.11
Total 419,485,425.61 413,918,369.11
RMBTo0t.a0l0a. mount of notes payable which became matured but unpaid at the end of current period is
18. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Endingbalance Beginningbalance
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Accountspayable 3,257,672,975.56 3,152,374,810.72
Total 3,257,672,975.56 3,152,374,810.72
(2) Significant accounts payable over 1 year
Unit: RMB
Item Endingbalance Reasonforoutstandingorcarryingforward
Projectpayment 32,617,639.32
Goodspayment 11,048,910.39
Total 43,666,549.71 --
19. Accounts received in advance
W□ Yheesth√erNnoew revenue standards have been implemented(1) Presentation of accounts received in advance
Unit: RMB
Item Endingbalance Beginningbalance
Accountsreceivedinadvance 12,530,706,854.77 6,706,735,898.48
Total 12,530,706,854.77 6,706,735,898.48
(2) Significant accounts received in advance over 1 year
Unit: RMB
Item Endingbalance Reasonforoutstandingorcarryingforward
Proceeds fromsalesofliquors 53,085,975.64
Total 53,085,975.64 --
20. Payroll payable
(1) Presentation of payroll payable
Unit: RMB
Item Beginningbalance Increaseincurrent Decreaseincurrentperiodperiod Endingbalance
Ic.oSmhpoertn-steartmion 2,764,096,662.52 5,702,688,970.41 4,871,913,115.97 3,594,872,516.96
IbIe.nPeofsitts-e-mdpelfoinyemdent5,198,847.67 760,960,193.32 766,144,828.14 14,212.85
contribution plans
III. Terminationbenefits 9,236,177.31 9,236,177.31
Total 2,769,295,510.19 6,472,885,341.04 5,647,294,121.42 3,594,886,729.81
(2) Presentation of short-term compensation
Unit: RMB
Item Beginningbalance Increaseincurrent Decreaseincurrentperiodperiod Endingbalance
a1.lloSwaalanrcieess,abnodnuses, 2,685,041,362.81 4,765,207,410.32 3,919,993,334.58 3,530,255,438.55
subsidies
2. Employeebenefits 234,231,124.03 234,231,124.03
c3h.aSrogceisalinsurance 155,091.15 283,850,676.37 283,851,088.87 154,678.65
iInnsculurdainncge:Mpreedmiciuaml 154,820.64 231,109,956.13 231,110,290.43 154,486.34
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
iInnsduursatrnicaelinpjruermyium 166.15 36,719,296.41 36,719,355.11 107.45
Bpriertmhiiunmsurance 104.36 16,021,423.83 16,021,443.33 84.86
4. Housingfund 13,248,883.00 329,108,272.00 321,296,371.00 21,060,784.00
e5.xpLeanbdoirtuurneioannd
pfuenrdsonneleducational 65,651,325.56 90,291,487.69 112,541,197.49 43,401,615.76
Total 2,764,096,662.52 5,702,688,970.41 4,871,913,115.97 3,594,872,516.96
(3) Presentation of defined contribution plans
Unit: RMB
Item Beginningbalance Increaseincurrent Decreaseincurrentperiodperiod Endingbalance
i1n.sBuarasniccepension 14,951.95 595,599,779.97 595,600,519.07 14,212.85
i2n.sUurnaenmceplopyremmeinutm 23.30 19,066,690.90 19,066,714.20
3co.nCtorirbpuotrioantepension 5,183,872.42 146,293,722.45 151,477,594.87
Total 5,198,847.67 760,960,193.32 766,144,828.14 14,212.85
21. Tax payable
Unit: RMB
Item Endingbalance Beginningbalance
VAT 839,852,597.96 1,070,214,491.06
Consumption tax 1,830,800,710.07 1,641,542,786.19
Corporateincometax 5,001,143,551.02 2,203,429,719.44
Individualincometax 13,250,079.02 14,016,111.56
Urban maintenantcaexandconstruction 116,343,916.81 86,843,135.42
Property tax 369,637.06 275,085.16
Stamp duty 645,760.98 864,554.47
Landusetax 1,079,906.23 693,496.77
Educationsurcharge 81,365,635.62 37,344,381.88
Localeducationsurcharge 54,248,855.59 24,901,353.38
Environmental protectiontax 18,621.28 10,382.41
Resourcetax 47,317.20
Total 7,939,166,588.84 5,080,135,497.74
TOhtheetranxoetseos:f the Company depend on the amount verified and imposed by the tax authorities.22. Other payables
Unit: RMB
Item Endingbalance Beginningbalance
Otherpayables 2,292,680,733.51 2,585,355,687.52
Total 2,292,680,733.51 2,585,355,687.52
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(1) Other payables
1) Presentation of other payables by nature
Unit: RMB
Item Endingbalance Beginningbalance
deveMloaprkmeetnstuepxppoertnesxep,epnusbeliscit(yineclxupdeinngsem,abrrkaentding 1,178,396,467.55 1,863,905,084.82
expense)
Deposit 703,073,760.13 609,586,594.65
Accrued expenses 230,340,302.12
Money collectedorpaidforanother 66,271,527.52 42,858,069.91
Claims fromsafeguardingrights 42,291,712.18 38,692,262.54
Others 72,306,964.01 30,313,675.60
Total 2,292,680,733.51 2,585,355,687.52
2) Significant other payables over 1 year
Unit: RMB
Item Endingbalance Reasonforoutstandingorcarryingforward
Deposit 64,380,280.00
Total 64,380,280.00 --
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
23. Deferred income
Unit: RMB
Item Beginningbalance IncreaseincurrentperiodDecreaseincurrentperiod Endingbalance Cause
Government subsidy 267,010,618.22 13,860,000.00 14,545,249.82 266,325,368.40
Total 267,010,618.22 13,860,000.00 14,545,249.82 266,325,368.40 --
Projects involving government subsidies:
Unit: RMB
Increaseincurrent recoAgmnoizuendtas Amount Aomffosuentt
Liabilities Beginningbalance period non-operating recognizedas againstcosts Other Endingbalance Asset-related
Amountofsubsidy cruervreennuteyeinar otherincomes ceuxprreeannnstdeyseainrchanges /income-related
T9e0c-ThhnoicuaslaInnndo-TvoantioPnoPtteroryjeJcatr(PAhgainsgeSI)piritRoom 187,954,666.78 6,712,666.56 181,242,000.22 Asset-related
PBrreojweecrtyWastewaterComprehensiveTreatment 16,200,000.00 750,000.00 15,450,000.00 Asset-related
WTraanstsefowramteartiConomPprorejehcetnsiveTreatmentand 14,133,333.31 333,333.36 13,799,999.95 Asset-related
CSoonmgpgroenhgenRsiivveerT(WreualtimanegnytePSroejecctiton)10,730,000.00 178,833.36 10,551,166.64 Asset-related
Wuliangye IndustrialParkConstructionProject 10,000,000.00 10,000,000.00 Asset-related
(3P0h0a-TsheoI)usand-TonPotteryJarAgingSpiritRoom 10,000,000.00 10,000,000.00 Asset-related
TCeocnhtrnoicl,aQlUuaplgitryaIdninsgpePcrtoiojencatnodftTheestQinugaCliteynter9,613,333.35 343,333.32 9,270,000.03 Asset-related
RWeansotevwataiotenrPTrroejaetcmtentSystemUpgradingand 8,959,999.96 320,000.04 8,639,999.92 Asset-related
T6e0c-ThhnoicuaslaUnpdg-TraodninMgaPortoajie-FcltaovfotrhLeiquorPottery 2,949,999.80 590,000.04 2,359,999.76 Asset-related
Jar AgingRoom
RCoeadul-ctoti-oGnaPsrEojneecrtg(yPChaosneseI)rvationandEmission 2,933,035.02 1,099,999.80 1,833,035.22 Asset-related
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
CReoadlu-ctoti-oGnaPsrEojneecrtg(yPChaosneseIIr)vationandEmission 500,000.00 500,000.00 Asset-related
UShpigerragdoiunbgaPoroPjreocdtuctionLineTechnical 480,000.00 120,000.00 360,000.00 Asset-related
5D1u0stWRoermksohvoaplSEynsvtieromnmReennotavlaPtiroontePcrtoiojencBtooiflethre 656,250.00 656,250.00 Asset-related
503 WorkshopCoal-to-GasProject 600,000.00 600,000.00 Asset-related
Industrial developmentfunds 1,000,000.00 1,000,000.00 Income-related
Informatization andbigdataapplication 1,000,000.00 270,833.34 729,166.66 Income-related
tOhveeSrainllgAlen-tCi-choipunDtuearfle-BitaPnadckRaEgIeDPTreocjhenctoUlosgiyng100,000.00 100,000.00 Income-related
TTeaclehnntosluobgsyidBiuersefaroumtheScienceand 700,000.00 300,000.00 1,000,000.00 Income-related
Subsidy fornationalgreenplantof2018 500,000.00 500,000.00 Income-related
Provincial specialfundsforintellectualproperty 90,000.00 90,000.00 Income-related
Sinpteelcliigaelnfutnsdpsecfotrraalpdpaltiacaatnioanlyosfiscilonutdh-eteprrmocineaslsof 770,000.00 770,000.00 Income-related
fermentation offermentedgrains
oSrpgeacniaiclffeurntdiliszeforrforersbereawrcihngonsomrgahkuinmgusspiencgiaslpent
gaprapilnicsabtiaosnedonbiologicaltransformationandits 700,000.00 700,000.00 Income-related
Total 267,010,618.22 13,860,000.00 14,545,249.82 266,325,368.40
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
24. Capital stock
Unit: RMB
Increase/decrease(+,-)
Beginningbalance Issuanceof Bonus Capitalization Endingbalance
newshares share ofpublic Others Sub-totalreservefund
Sshuamreosf3,881,608,005.00 3,881,608,005.00
25. Capital reserve
Unit: RMB
Item Beginningbalance Increaseincurrent Decreaseincurrentperiodperiod Endingbalance
(capCitaaplistatolcpkrepmreiummium)2,682,523,702.98 2,682,523,702.98
Other capitalreserve 123,383.17 123,383.17
Total 2,682,647,086.15 2,682,647,086.15
26. Surplus reserve
Unit: RMB
Item Beginningbalance Increaseincurrent Decreaseincurrentperiodperiod Endingbalance
Staturetosreyrvseusrplus13,120,411,030.42 2,971,785,992.59 16,092,197,023.01
Total 13,120,411,030.42 2,971,785,992.59 16,092,197,023.01
27. Undistributed profit
Unit: RMB
Item Currentperiod Previousperiod
pUenrdioisdtrbibeufoteredapdrojufisttamtethnetendofprevious 43,802,603,958.99 37,675,282,021.74
pUenrdioisdtraibftuetreaddpjurosftimtaetntthebeginningofthe 43,802,603,958.99 37,675,282,021.74
pPalures:nNtceotmprpoafintsyainttrciubrurteanbtlepetoriothdeownersof 17,402,164,190.16 13,384,246,683.60
rLeessesr:vAepspropriationofstatutorysurplus 2,971,785,992.59 2,210,834,339.85
Common sharedividendspayable 6,598,733,608.50 5,046,090,406.50
Ending undistributedprofit 51,634,248,548.06 43,802,603,958.99
1D)e. taTilsheofbuengdinisntirnibguutenddipsrtorifbituatet dthperboefitgiinsnaindgjuosftethdebaydRjuMstBme0n.0t0pedruioedt:o the retroactive adjustmentacco2rd).ingThtoethbeegAicncnoinugntiunngdSisttarinbduaterddspfororfBituissinaedsjsusEtendterbpyrisReMaBnd0r.e0l0evdaunet nteowcphraonvgiseiosnisn. accountingpolic3ie)s. . The beginning undistributed profit is adjusted by RMB 0.00 due to correction of major
acco4u)n.tinTgheerrboergsi.nning undistributed profit is adjusted by RMB 0.00 due to changes in the combination
scop5e).ariTsihnegbfreogminnthinegsuanmdeisctroibnutrtoeld. profit is adjusted by RMB 0.00 in total due to other adjustments.
28. Operating revenue and operating cost
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Revenue Cost Revenue Cost
Primary business 49,857,555,489.83 12,578,575,730.65 39,823,798,827.75 10,329,058,497.08
Other businesses 260,550,387.31 223,684,216.69 206,390,772.12 157,724,437.19
Total 50,118,105,877.14 12,802,259,947.34 40,030,189,599.87 10,486,782,934.27
W□ Yheesth√erNnoew revenue standards have been implemented29. Tax and surcharges
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Consumption tax 5,574,554,509.16 4,651,541,239.20
Urban maintenantcaexandconstruction 765,970,059.85 680,310,364.67
Educationsurcharge 328,844,515.77 292,838,686.09
Resourcetax 372,276.20 350,018.00
Property tax 28,945,716.04 24,393,707.24
Landusetax 50,020,995.02 49,560,403.34
Vehicleandvesselusetax 13,797.41 15,714.77
Stamp duty 13,660,117.60 13,132,633.02
Localeducationsurcharge 219,840,795.95 195,225,790.76
Environmental protectiontax 2,120,319.55 1,128,741.48
Total 6,984,343,102.55 5,908,497,298.57
30. Selling expenses
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Commaprrkeehtednesvievelopsemlleinngteexxppeennssee,sp(uinbclilcuidtying 4,349,034,516.43 3,282,228,558.55
expense, brandingexpense,payroll,etc.)
Freight andmiscellaneousexpenses 353,946,381.65 303,508,206.74
Travelexpense 110,726,346.05 59,015,064.71
Others 171,872,092.64 133,681,845.01
Total 4,985,579,336.77 3,778,433,675.01
31. Administrative expenses
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
(incCluodminpgretrhaevnesl,ivoeffeicxep,eenxspeesnosfetshoefCthoembpoaanrydof
directors,leamboprlopyroeteecretimonunaeprpalitaionnc,elsa,beotrci)nsurance,1,148,066,122.90 991,012,355.66
Rents 357,228,294.55 348,396,193.45
Trademarkandlogoroyalties 580,070,408.13 480,734,618.78
Comprehensiveservicefee 67,614,607.22 85,711,430.00
Others 502,367,715.29 434,644,107.55
Total 2,655,347,148.09 2,340,498,705.44
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
32. Research and development expense
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Comppraeyhroelnl,sliavbeoerxipnesunrsaensc(ein,clalubdoirnpgrtortaevcetilo,noffice, 53,752,944.91 41,073,386.44
appliances,etc.)
Materialexpenses 31,810,442.56 14,758,839.52
Product designfees 14,787,253.09 13,121,087.51
Depreciation andamortizationexpenses 7,051,081.97 8,268,904.73
Others 18,958,698.58 6,860,288.06
Total 126,360,421.11 84,082,506.26
33. Financial expenses
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Interest expenditure
Less:Interestrevenue 1,416,398,912.72 1,081,572,031.13
Exchange loss 134,662.81 257,772.41
Less:Exchangegains 202,724.12 519,065.02
Expenditure fordiscountonnotes 5,958,156.26
Service chargeoffinancialinstitutions 1,224,741.74 1,035,827.58
Others -15,503,633.45 -10,171,423.75
Total -1,430,745,865.74 -1,085,010,763.65
34. Other incomes
Unit: RMB
Sources ofotherincomes Amountincurrentperiod Amountinpreviousperiod
Governmentsubsidy 130,434,159.51 88,540,102.95
Tax refunds 29,278,082.30 17,688,897.86
Total 159,712,241.81 106,229,000.81
1N.oteRs:efer to the Note “VII. 46. Government subsidy” for details of government subsidies.Tax p2r.efeTrehnectea”x. refunds are the VAT refunds received by the Company, refer to the Note “VI. Taxes, 2.35. Investment income
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Longa-ctecormuneteqduibtyyinevqeusittymmenetthinocdome 92,500,753.05 100,864,555.05
Invelsotnmge-tnetrminceoqmueityfrionmvedstismpeonstalof 0.22
Total 92,500,753.05 100,864,555.27
36. Credit impairment loss
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Bad debtlossofotherreceivables -644,388.36
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Bad debtlossofaccountsreceivable -489,191.91
Total -1,133,580.27
37. Asset impairment loss
W□ Yheesth√erNnoew revenue standards have been implemented
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
I. Baddebtloss -4,549,791.15
II. Inventoryfallingpriceloss -3,020,763.91 -3,180,521.74
VII. Fixedassetimpairmentlosses -3,149,115.00
Total -3,020,763.91 -10,879,427.89
38. Gain from disposal of assets
Unit: RMB
Sourceofgainfromdisposalofassets Amountincurrentperiod Amountinpreviousperiod
Disposal ofnon-currentassets 2,779,400.03 5,273,892.02
Total 2,779,400.03 5,273,892.02
39. Non-operating revenue
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod Amountsrecordedintocurrentnon-recurringprofitorloss
Government subsidy 300,000.00
Penaltyrevenue 5,986,339.09 9,166,517.93 5,986,339.09
Gnoanin-scufrroremntsacsraspetosf 909,663.24 946,124.80 909,663.24
Others 22,994,270.32 33,390,478.93 22,994,270.32
Total 29,890,272.65 43,803,121.66 29,890,272.65
Government subsidy recognized in current profit or loss:
Unit: RMB
Does the
Granted Reason Natureand subsidy Whether Amount AmountinSubsidyitems for affect special incurrent previous Asset-related/bygranting type currentprofit subsidy period period Income-related
or loss
Othgeorvferarngmmeennttary 300,000.00 Income-related
subsidy
Total 300,000.00
40. Non-operating expenditure
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod Amountsrecordedintocurrentnon-recurringprofitorloss
Donations 147,731,056.86 126,393,193.31 147,731,056.86
Penaltyexpenditure 266,281.96 2,554,160.76 266,281.96
Loss onscraaspseotfsnon-current 5,260,675.33 2,791,521.65 5,260,675.33
Abnormalloss 29,395.82 29,395.82
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Others 16,390,656.88 23,634,853.92 16,390,656.88
Total 169,678,066.85 155,373,729.64 169,678,066.85
ODothneartinoontsesm: ainly include the donation of RMB 147.3729 million to Sichuan Wuliangye CharitableFprooujencdta, tRioMn,Ba2m0omngillwiohnicishfRorMeBar1th0q0umakileliorneliiesffoofr CthhearnugrnailnrgevCitoaulinztayt,ioRnMaBnd7 tmarigllieotnedispfoovr ethrteyWalulelivaiantgioyneEmdiluliocantioisn fIonrcethnetivEedIuncfraatsiotrnucItnucreenPtivroejeAcwt aorfdSiPcrhoujeacnt Uonf ivtheersitEydoufcaSticoienncDeevaenlodpEmnegnint eFeoriunngd,aRtiMonB o7fRSiMchBua3n.27Unmivileliorsnityisofof rStchieenacceroabnadticEsnegdinueceartiinogn,pRoMveBrty5.a4l6le5vimatiilolinonprisojefocrt YofibYinibEind, uRcMatBion2 mFoilulionndaistiofonr,tRhMe Btal1e.n2t4d9e5vmeliollpiomneisntfoprrothjeectpoofvXerintyloanlgleCvioautionnty,pYroajjeiacntgofCQoiunngtsyh, Ganaynazni TVibilleatgaenoAfuXtoinngowmeonusCPourenftey,ctaunred,RMB 1.3884 million is for relief of the earthquake occurred on December 16 in Xingwen County.
41. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Currentincometaxexpenses 6,163,289,027.89 4,760,159,182.00
Deferred incometaxexpenses -285,532,262.97 -191,986,652.28
Total 5,877,756,764.92 4,568,172,529.72
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amountincurrentperiod
Total profit 24,106,012,043.53
Income taxexpensecalculatedwithstatutory/applicabletaxrates 6,026,503,010.88
Impact ofdifferenttaxratesapplicabletosubsidiaries -83,191,083.19
Impact onadjustmentofincometaxinpreviousperiods -36,969,244.42
Impact ofnontaxablerevenue -23,125,188.26
Impact ofnon-deductiblecosts,expensesandlosses 1,154,078.99
hImavpeacntootfbdeeednurceticbolegnloizsesdesinotfhdeepferrerveidouinscpoemrieodtaxassetswhich -5,917,450.16
dImefpearcretdofindceodmucetitbalxeatesmseptosrwarhyicdhiffhearevencneostobredeendruecctoibglneizloesdsiensof 13,707,996.30
current period
Impact ofweighteddeductionforsalaryofthedisabled -11,594,238.14
Impact of10%taxrateforrevenuefromsteam -545,473.86
Iemxppeancsteosfweighteddeductionforresearchanddevelopment -205,016.27
Impact ofone-timedeductionoffixedassets -2,060,626.95
Income taxexpenses 5,877,756,764.92
42. Items of cash flow statement
(1) Other cash received relating to operating activities
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Interestrevenue 1,042,012,585.56 853,819,574.81
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Depositsandrgeocveeivrnemdentsubsidies 421,764,044.99 383,418,320.47
Total 1,463,776,630.55 1,237,237,895.28
(2) Other cash paid relating to operating activities
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Expensesrelatingtoselling 1,766,874,668.53 1,300,737,190.29
Comprehensiveservicefee 60,889,059.16 85,711,430.00
Trademarkandlogoroyalties 477,571,873.51 480,734,618.78
Rents 337,348,167.14 348,396,193.45
Depoosuitt-so,f-cpuorrceknettaecxcpoeunnstessapnadidother 722,835,412.55 754,533,479.42
Total 3,365,519,180.89 2,970,112,911.94
(3) Other cash payments relating to financing activities
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Return ofdepoasnidtfionrtesrheasrtesubscription 22,092,404.60
Total 22,092,404.60
43. Supplementary Information to Cash Flow Statement
(1) Supplementary Information to Cash Flow Statement
Unit: RMB
Supplementary information Amountofcurrentperiod Amountofpreviousperiod
1flo.wRsecfroonmciloiapteiornatfinrogmacnteivtitpierosf:itstocash -- --
Net profit 18,228,255,278.61 14,038,650,126.48
Plus: Provisionforimpairmentofassets 3,436,827.62 -4,125,897.17
Fasixseedtsadsespetlestidoenp,raencdiatpiorond,uociltiavnedgas 418,406,696.04 484,853,435.67
biological assetsdepreciation
Amortization ofintangibleassets 19,235,638.90 15,165,124.85
eAxmpoerntiszeastionoflong-termdeferred 52,056,059.84 63,080,998.72
iLnotasnsgfribolmeadsisspeotssaalnsdofoftihxeerdloansgs-ettesr,m -2,779,400.03 -5,273,892.02
Sascsraeptslo(gsasinosffiinxdeidcaatsesdewtsit(hga“-i”n)s
iFnidniacnacteiadlewxitphe“n-s”)es(gainsindicatedwith 4,351,012.09 1,845,396.85
“-”) -63,661.42 -164,139.95
Investment loss(gainsindicatedwith“-”) -92,500,753.05 -100,864,555.27
(Dineccrreeaasseeiinnddiceafteerdrewditinhc“o-”m)etaxassets -285,532,262.97 -191,986,652.28
Dinedcicraetaesdewinithin“v-e”)ntory(increase -1,886,461,774.33 -1,226,493,031.60
D(ineccrreeaasseeiinndoicpaeteradtinwgithre“c-”e)ivables -2,354,601,239.25 -5,228,455,859.11
(Indcerceraesaeseininodpicearatetidngwpitahy“a-”b)les 9,008,269,618.61 4,471,127,979.73
Net cashflowsfromoperatingactivities 23,112,072,040.66 12,317,359,034.90
a2.ctSivigitnieifsicnaonttiinnvvoelsvtinmgecnatsahn:dfinancing -- --
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
3eq.uNievatlcehnatsn:geincashandcash -- --
Ending balanceofcash 63,138,829,242.88 48,888,727,143.63
Less: Beginningbalanceofcash 48,888,727,143.63 40,529,000,014.21
Plus: Endingbalanceofcashequivalents 65,304,080.91 71,321,754.32
eLequssiv:aBleengtisnningbalanceofcash 71,321,754.32 62,803,391.57
Neqeutiivnaclreenatsseincashandcash 14,244,084,425.84 8,368,245,492.17
(2) Composition of cash and cash equivalents
Unit: RMB
Item Endingbalance Beginningbalance
I. Cash 63,138,829,242.88 48,888,727,143.63
Including: Cashonhand 28,179.40 48,306.24
pBaaynmkednetpositreadilyavailablefor 63,138,797,874.22 48,888,675,659.23
Oavtahielarbclaesfhorapnadycmaesnhtequivalentsreadily 3,189.26 3,178.16
II. Cashequivalents 65,304,080.91 71,321,754.32
Iwnicthluinditnhgr:eeDempoonstihtsofnotesmatured 65,304,080.91 71,321,754.32
eIIqI.uEivnadleinngtsbalanceofcashandcash 63,204,133,323.79 48,960,048,897.95
44. Assets with restricted ownership or use right
Unit: RMB
Item Endingbookvalue Reasonsforlimitation
Caesqhuiavnadlencatssh 99,996,480.91 92D94e,2p7,o45s40i0,t0.o80f00b..9a1nkanadccoetphtearndceepboilsliotsfoRfMRBMB
Accoufinntasnrceicnegivable 144,514,604.00Pledgeofbankacceptancebill
Total 244,511,084.91 --
45. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Item Endingbcaularrnecnecyofforeign Conversionexchangerate EndingbalaRncMeBconvertedto
Cash andcashequivalents -- --
Including: USD 653,701.62 6.9762 4,560,353.24
(p2l)acNeso,tebooonkkoeveeprisnegacsurorpeenrcaytianngdesnetlieticetsio, ninbcalusdisinfogr dimispcolorstaunrteoovferosveearsseoapserpatriinmgaeryntbitiuessi,naensds
disclosure of the reasons for any change in the bookkeeping currency.
□ Applicable √ Not applicable46. Government subsidy
(1) Basic information of government subsidies
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Unit: RMB
Type Amount Presenteditems Amountsrecordedintocurrentprofitorloss
T9e0c-ThhnoicuaslaInnndo-TvoantioPnoPtteroryjeJcatr(PAhgainsgeSI)piritRoom 201,380,000.00 Deferredincome 6,712,666.56
BPrreojweecrtyWastewaterComprehensiveTreatment 22,500,000.00 Deferredincome 750,000.00
CSoonmgpgroenhgenRsiivveerT(WreualtimanegnytePSroejecctiton)10,730,000.00 Deferredincome 178,833.36
QTeucahlintyicaInlsUppegcrtaiodninagnPdrToejesctitnogfCtheentQerualityControl, 10,300,000.00 Deferredincome 343,333.32
WTraasntsefowramteartiConomPrporjeehcetnsiveTreatmentand 10,000,000.00 Deferredincome 333,333.36
Wuliangye IndustrialParkConstructionProject 10,000,000.00 Deferredincome
3(P0h0a-TsehoI)usand-TonPotteryJarAgingSpiritRoom 10,000,000.00 Deferredincome
WReansotevwataiotenrPTrroejaetcmtentSystemUpgradingand 9,600,000.00 Deferredincome 320,000.04
WDuosrtksRheompoEvnavliSroynsmteemntRaelPnorovtaetciotinonPrBoojeilcetrofthe510 7,406,250.00 Deferredincome 656,250.00
CReoadlu-tcoti-oGnaPsrEojneecrtg(yPChaosneseI)rvationandEmission 6,600,000.00 Deferredincome 1,099,999.80
MTeacohtnaiic-FallaUvpogrrLaidqiunogrPProotjteecrytoJfatrhAeg6in0g-TRhoooumsand-Ton5,900,000.00 Deferredincome 590,000.04
SPhroiejercgtoubaoProductionLineTechnicalUpgrading 1,200,000.00 Deferredincome 120,000.00
Sinpteelcliigaelnfutnsdpsecfotrraalpdpatliacaatnioanlyosfiscilnouthde-teprrmocineaslsof 770,000.00 Deferredincome 770,000.00
Sfeprmeceianltafutinodnsoffofrerremseenatrecdhgornaimnsakingspecialorganic
fbearstielizdeornfobrioblroegwicinagltsraonrgshfourmmautsioinngasnpdenitstgrains 700,000.00 Deferredincome 700,000.00
application
Informatization andbigdataapplication 1,000,000.00 Deferredincome 270,833.34
Industrial developmentfunds 1,000,000.00 Deferredincome
BTaulreenatusubsidiesfromtheScienceandTechnology 1,000,000.00 Deferredincome 1,000,000.00
503 WorkshopCoal-to-GasProject 600,000.00 Deferredincome 600,000.00
Subsidy fornationalgreenplantof2018 500,000.00 Deferredincome
RCoedalu-tcoti-oGnaPsrEojneecrtg(yPChaosneseIIr)vationandEmission 500,000.00 Deferredincome
OSivnegrlael-lCAhnitpi-Dcouuanl-tBerafenidtPRaEcIkDaTgeecPhnroojleocgtyUsingthe 100,000.00 Deferredincome 100,000.00
Provincial specialfundsforintellectualproperty 90,000.00 Deferredincome
FinudnudsstrifaolrhseuapdpqourtainrtgerebnatesreprfirsoemsYseibttinlinLginingathneg 58,380,057.00 Otherincomes 58,380,057.00
Economic andTechnologicalDevelopmentZone
VATdeduction 18,785,891.57 Otherincomes 18,785,891.57
Subsidy forinvestmentpromotion 13,573,925.31 Otherincomes 13,573,925.31
HSmebaelliaLnindzmhaendgiuEmcoennotemrpicrisDeesvesulopppmoertnintgZfounnedsfrom 7,481,992.00 Otherincomes 7,481,992.00
SAdumbsiindisietsraotifo2n0C1o8mfomristteeveeralpoliciesoffastening
athnedcsounpsptrourctitniognthoefmtraondsefronrmpoawtioenrf,uulpingdruasdtirnigalacnitdies3,440,000.00 Otherincomes 3,440,000.00
development ofthepark
Funds forconstructionofWuguchunspiritroom 2,700,000.00 Otherincomes 2,700,000.00
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sanudbsteidcyhfnoorloegniecraglyincnoonvsaetirovnation,emissionreduction 2,117,200.00 Otherincomes 2,117,200.00
wFuitnhdzsefroor-bsaulpapnocretinagcctohuenstesttlementofenterprises 1,996,900.00 Otherincomes 1,996,900.00
Subsidy forincrementofgasconsumption 1,555,000.00 Otherincomes 1,555,000.00
Special fundfortalentdevelopment 1,547,600.00 Otherincomes 1,547,600.00
Pduroajle-bcatnodfoRvFeIrDallaunptig-craoduinntgerofefitthpeaocnkaeg-ceo,re
rteecshenaorclohg,idceavleulpogprmadeinntg,doefspirgondaunctdioanplpinliec,aationndothfe 1,200,000.00 Otherincomes 1,200,000.00
new environment-friendlypackagingmaterials
Rewards toexecutives 769,100.00 Otherincomes 769,100.00
Refund ofchargesofindividualincometax 673,812.10 Otherincomes 673,812.10
Industrial developmentfundsof2018 650,000.00 Otherincomes 650,000.00
oSfu2b0s1id8yforthestandardconstructionofgreenYibin 650,000.00 Otherincomes 650,000.00
Other fragmentarygovernmentsubsidy 367,431.71 Otherincomes 367,431.71
Total 427,765,159.69 130,434,159.51
(2) Return of government subsidies
□ Applicable √ Not applicableVIII. Changes in consolidation scope1. BThuesrieneisssnocobumsbiniensastioconminbvinoaltvioinnginevnotlevrinpgriseenstenrportisuensdneort tuhnedesramthee scaomnteroclontrol.2. BThuesrieneisssnocobumsbiniensastioconminbvinoaltvioinnginevnotlevrinpgriseensteurpnrdiseerstuhnedsearmthee csoanmteroclontrol.
3. CThoeurneteisrnpousrcuhbasisdeiary acquired by counter purchase during the reporting period.
4. DThisepreosisalnoofdsisupbossiadliaorfysubsidiary during the reporting period.
5. Changes in consolidation scope for other reasons
subsEidxiaprlay,inliqtuhiedactihoannogfessubinsidcoianrsieosli,deattcio.)nansdcorpeelevfaonr tointhfoerrmraetaiosno:ns (such as, establishment of new
boardOnofJduinreec2to0r,s2o0f1t9h,ethCeomCpoamnpya, njoyinatnlydfuWnudleiadngayned Gesrotaubpl,isahsedre"vWieuwlieadnganNdonagpXpiraonvgedSebryietsheBafiifjtiuh
YmiiblliinonC,ota.,kLintdg."u,pof9w5%hicohf tthhee rreeggiisstteerreedd ccaappiittaall;wWasulRiaMngBye10G0romuiplliocno.nTtrhibeuCteodmRpManBy5comniltlriiobnu,tetadkRinMg Bup955%
ocof ntshoelidreagtioisntesrceodpecaopfittahle; Caonmd pWanuyliasningceNiotsngeXstiaabnlgishSmeerinets. Baijiu Yibin Co., Ltd. is included in the
IX. Interests in other entities
1. Interests in subsidiaries
(1) Compositions of the Group
Nameofsubsidiary bPursiminaersysRegistered Natureof Shareholdingproportion Wayof
place address business Directly Indirectly acquisition
Sichuan YibinWuliangyeWineryCo.,Ltd. Yibin Yibin Manufacturing 99.00% 0.99% Establishment
Yibin WuliangyeLiquorSalesCo.,Ltd. Yibin Yibin Business 95.00% Establishment
YCiob.i,nLWtdu.liangTequandTouquBrandMarketing Yibin Yibin Business 95.00% Establishment
. Yibin Yibin Business 95.00% Establishment
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
YCiob.i,nLWtdu.liangyeSeriesLiquorBrandMarketing Yibin Yibin Business 95.00% Establishment
SCioc.h,uLatdn.YibinWuliangyeSupplyandMarketing Yibin Yibin Business 99.00% 0.95% Establishment
Yibin JiangjiuLiquorCo.,Ltd. Yibin Yibin Manufacturing 100.00% Establishment
SPricohteucatnioYnibCion.,WLutdlia.ngyeEnvironmental Yibin Yibin Manufacturing 51.00% Establishment
coBmusbiinneastison
Sichuan JinwuxinTechnologyCo.,Ltd. Yibin Yibin Business 51.00% involvingenterprisesnot
undecrotnhteroslame
LStidc.huanJiebeikeEnvironmentalTechnologyCo., Yibin Yibin Engineering 26.01% Establishment
Yibin ChangjiangyuanLiquorCo.,Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin ChangjiangyuanTradeCo.,Ltd. Yibin Yibin Business 100.00% Establishment
Yibin ChangjiangyuanBreweryCo.,Ltd. Yibin Yibin Manufacturing 100.00% Establishment
DYiebvinelWopumliaenngtyCeoO.,rLgtadn.icAgriculture Yibin Yibin Agriculture 100.00% Establishment
LYtidb.inWuliangyeXianlinEcologicalLiquorCo., Yibin Yibin Manufacturing 90.00% Establishment
Yibin XianlinLiquorMarketingCo.,Ltd. Yibin Yibin Business 90.00% Establishment
Yibin WuliangyeXinshengdaiLiquorCo.,Ltd. Yibin Yibin Business 42.30% Establishment
SLtidc.huanYibinWuliangyeJingmeiPrintingCo., Yibin Yibin Manufacturing 97.00% 1.53% Establishment
Yibin XinxingPackagingCo.,Ltd. Yibin Yibin Business 98.53% Establishment
coBmusbiinneastison
SCiocmhupaannyYiLbiimniPteldasticPackagingMaterials Yibin Yibin Manufacturing 100.00% entienrvporilsveinsgnot
undecrotnhteroslame
coBmusbiinneastison
Sichuan YibinGlobalGroupShenzhouGlass Yibin Yibin Manufacturing 100.00% involvingCo.,Ltd. enterprisesnot
undecrotnhteroslame
coBmusbiinneastison
CSioc.h,uLatdn.YibinGlobalGelasiGlassManufacturing Yibin Yibin Manufacturing 100.00% entienrvporilsveinsgnot
undecrotnhteroslame
coBmusbiinneastison
Sichuan YibinPushGroup3DCo.,Ltd. Yibin Yibin Manufacturing 100.00% involvingenterprisesnot
undecrotnhteroslame
CGoumanpgadnoynLgimFoitsehdanPlasticPackagingMaterials Foshan Foshan Manufacturing 100.00% Establishment
SCioc.h,Lutadn.YibinWuliangyeInvestment(Consulting) Yibin Yibin Investment 95.00% Establishment
Wuhou CulturalDevelopmentCo.,Ltd. Beijing Beijing Culturalindustry 70.30% Establishment
Yibin ZhenwushanLiquorCo.,Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin ShijiLiquorCo.,Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin CuipingshanLiquorCo.,Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Wuliangye Dashijie(Beijing)TradeCo.,Ltd. Beijing Beijing Business 95.00% Establishment
Handan YongbufenliLiquorCo.,Ltd. Handan Handan Manufacturing 51.00% Establishment
Linzhang DeshengWineTradeCo.,Ltd. Handan Handan Business 51.00% Establishment
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Handan YongbufenliSalesCo.,Ltd. Handan Handan Business 51.00% Establishment
coBmusbiinneastison
Huaibin WubinConsultationServiceCo.,Ltd. Huaibin Huaibin Consultation 100.00% involvingenterprisesnot
undecrotnhteroslame
Wuguchun JiuYeCo.,Henan.China coBmusbiinneastison
Huaibin Huaibin Manufacturing 11.03% 40.00% involvingenterprisesnot
undecrotnhteroslame
Huaibin TenglongTradeCo.,Ltd. Huaibin Huaibin Business 51.03% Establishment
WU JIUYESALESCO.,HENAN.China Huaibin Huaibin Business 51.03% Establishment
DSiecvheulaonpmWeunlitaCnog.y,eLTCDultureTourism Yibin Yibin iTnoduursistrmy80.00% Establishment
Sichuan WuliangyeTouristAgencyCo.,Ltd. Yibin Yibin Tourismindustry 80.00% Establishment
Yibin WuliangyeCreartCo.,Ltd. Yibin Yibin Business 45.00% Establishment
Wuliang NongXiangSeriesBaijiuYibinCo.,Ltd. Yibin Yibin Business 95.00% Establishment
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Co., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; as
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
rCeos.o, lvLetdd. btryanthsefersehdar2e0h%oldoefrthmeeeetqinugityotfoCBreeaijrint gCoSmpapraknley HonenJguylye 1E6d,u2c0a1ti8on, BaenidjinCguSltpuararkl lDeeIvnevleosptmmeenntt
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direc2to. rs OofnthOecCtoobmerpa2n6y,: 2S0ic1h5u,aansYribeivnieWwueldianagnydeaGdrooputpedXibaynlitnheFr1u0itthWimneeeCtion.g, Lotdf .t(hwehi5cthh hbaodabrdeeonf
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of the voting rights in it, and therefore it is included in the consolidated statements.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Important non-wholly owned subsidiaries
Unit: RMB
Nameofsubsidiary SMhainreohriotyldsinhgarperhooplodretriosnCuarttrreibnsuthtpaarbroelfehitsotoladmnedrisnloorsitsyesCurrmenintodriivtyidsehnadrsehdoelcdlearrsedto Endingbalanceofminorityequity
YLtidb.inWuliangyeLiquorSalesCo., 5.00% 764,461,060.81 543,507,232.77 1,056,336,282.57
(3) Main financial information of important non-wholly owned subsidiaries
Unit: RMB
Ending balance
Nameofsubsidiary Currentassets Non-currentassets Totalassets Currentliabilities Nolianb-ciluitrieresnt Totalliabilities
43,177,094,335.69 670,748,625.90 43,847,842,961.59 23,011,738,027.70 23,011,738,027.70
Yibin WuliangyeLiquorSalesCo., Beginningbalance
Ltd. Currentassets Non-currentassets Totalassets Currentliabilities Non-currentliabilities Totalliabilities
34,929,294,074.18 600,928,478.35 35,530,222,552.53 19,113,194,179.56 19,113,194,179.56
Unit: RMB
Amountincurrentperiod
Nameofsubsidiary Operatingrevenue Netprofit Totalcomprehensiveincome Cashflowasctfirvoitmiesoperating
46,559,665,282.40 15,289,221,216.27 15,289,221,216.27 17,588,142,720.27
Amount inpreviousperiod
Yibin WuliangyeLiquorSalesCo.,Ltd. Operatingrevenue Netprofit Totalcomprehensiveincome Cashflowasctfirvoitmiesoperating
37,922,906,848.69 12,077,843,810.83 12,077,843,810.83 10,246,872,045.32
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Interests in joint venture arrangement or associates
(1) Important joint ventures or associates
Primary Shareholding Accounting
Name ofjointventureorassociate bupslainceessRaedgdisrteesrsedNatureofbusiness DirepcrtloyporItniodnirectlyjoiintnrveteavsetmtnmteuenrntetosifnor
associates
Oriental OutlookMediaCo.,Ltd. Beijing Beijing Advertisingindustry 49.00% Equitymethod
SFiincahnucaenCYiob.i,nLWtdu.liangyeGroup Yibin Yibin Financialindustry 36.00% Equitymethod
CYiob.i,nLJtdia.meiIntelligentPackaging Yibin Yibin pPrianctiknaggiinngduasntrdy 48.28% Equitymethod
(2) Main financial information of important associates
Unit: RMB
Ending balancpee/Ariomdountincurrent Beginningbalanpcee/rAiomdountinprevious
SichuanFiYniabninceWCuolia.,nLgtyde.Group SichuanFiYniabninceWCuolia.,nLgtyde.Group
Total assets 47,753,623,863.80 30,371,515,738.92
Total liabilities 44,990,128,067.29 27,855,582,546.77
Eofqpuaitryeantttrciobmutpaabnleytotheshareholders 2,763,495,796.51 2,515,933,192.15
Sachcaorerdoinfgnteottahsesesthsacreahlcoulldaitnegd 994,858,486.74 905,735,949.18
proportion
aBsosookcviaatleuseofequityinvestmentin 994,858,486.74 905,735,949.18
Operating revenue 458,658,749.74 472,863,619.21
Net profit 247,562,604.36 298,813,630.79
Total comprehensiveincome 247,562,604.36 298,813,630.79
cDuivrrideenntdyesarreceivedfromassociatesin 36,000,000.00
(3) Main financial information of unimportant joint ventures and associates
Unit: RMB
Endingbalancpee/Ariomdountincurrent Beginningbalanpcee/rAiomdountinprevious
Associates: -- --
Total bookvalueofinvestments 26,920,244.84 13,742,029.36
cTaoltcaullaamteodubnytosfhtahreehfoollldoiwnginpgriotepmorstion -- --
--Net profit 3,378,215.48 -6,708,352.03
--Total comprehensiveincome 3,378,215.48 -6,708,352.03
3. Interests in the structured entity that is not included in the consolidated financial statements
Note on structured entity that is not included in the consolidated financial statements: None
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
X. Related parties and related transactions
1. Note on parent company of the Company
Shareholdingratio Proportionofvotes
Name ofparentcompany RaedgdisrteesrsedNbuastuinreesosfRegisteredcapital coomftphaenpyairnenthtecoomftphaenpyairnenthte
Company Company
YibiOnpSetarateti-oOnwCnoe.d,LAtdss.ets Yibin Investment RMB1,390million 35.21% 35.21%
NYiobtien oSntaptaer-eOnwt cnoemd pAasnsyeotsf thOepCeroamtiopnanCy:o., Ltd. is a wholly state-owned company funded andCeshteanbglisahnedd ibtsy rtehgeisPteeroepdlec’sapGitaolveisrnRmMenBt 1o,f39Y0ibimn ilClioitny.. LItesgbaul srienpersessesnctoaptieveinocflutdhees ctohme psatantye-ioswHnaendpbryotpheertPyeroigphlet ’(sinGclouvdeinrngmsetantte-oofwYnibeidn sChitayr.eTsh),esctaotme-poawnnye, dasasasneitnsvaensdtors,tactoendinuvcetsstmcaepnittaslamsaanuatgheomrizeendtaanudctioans,seatnsd mleaanseagweimtheinntthbeylimhiotsldoinfga,usthhoarrietyh.olding, investment and receiving assignment, transfer,equitMy aainndfunecxteiorcnissionfgYisbhinarSehtaotled-eOrw’sneridghAtsssientsmOupneicraiptiaoln-leCvoe.l, Letndt.eirnpcrilsuedeo: nFirbset,hhaolfldoinfgthsteateP-eoowpnlee’dsGfinoavnecrinnmgepnltatofof rYmibionf Cthitey; Pseecoopnled’s, raGisoivnegrnfmunednst foofr YkeibyincoCnistyt,ruactniodn inpvroejsetcintsg ains asuicnhvepstrmojeencttsanbdysshtaatree-hoowlndeindg aasnsdetshoaldnidnge; cothnirodm, icprodmevoetlionpgmtehnet omfaitnhteencaintycebyancdapaitpapl remcaiantaiognemoefnttheandvaaluseseotsfmanaYgibeimn eSntta.te-Owned Assets Operation Co., Ltd., by administrative transfer of state-owned assets,
2ho,1ld2s8,317010,3%63.o0f0 sthheareesqoufittyheoCf oSmicphaunayndirYecibtliyn orWinudliiarencgtylye, taGkrionugpupC5o4..,83L%tdo.,f tshoe tothtaaltcaitpitcaol nsttrooclks
of theThCeomSptaantey-.owned Assets Supervision and Administration Commission of Yibin Municipal
Government is the ultimate controller of the Company.
2. Note on subsidiaries of the Company
Refer to the Note “IX. Interests in other entities” for information about subsidiaries of the Company.3. Note on joint ventures and associates of the Company
assoRcieafteerstoof tthhee NCootmep“aIXn.y.Interests in other entities” for information about important joint ventures and
curreOntthpeer raiosds,oociraftoersmoerdjotihnet vbeanlatunrcees othf aret lcaotenddupcatretdy rtrealantseadctpioanrtsy wtriathnsthaectiConosmwpaitnhythine tCheomppreavniyouins
periods are as follows:
Name ofjointventureorassociate RelationshipwiththeCompany
Oriental OutlookMediaCo.,Ltd. Associates
Sichuan YibinWuliangyeGroupFinanceCo.,Ltd. Associates
Yibin JiameiIntelligentPackagingCo.,Ltd. Associates
4. Note on other related parties
Namesofotherrelatedparties RelationshipbetweenotherrelatedpartiesandtheCompany
aLesgthaelrPepreressideennttat(iGveenoefrtahleMCaonmagpearnoyfcWonucliuarnregnyetlyGsreoruvpe)s,
Sichuan YibinWuliangyeGroupCo.,Ltd. ahonlddspoomsietiodnirsecintoWrsualinadngoyfeficGerrsouopf;thdeireCcotlmyphaonldyincgur1r9e.n6t3ly%
equitiesoftheCompany
Sichuan AnjiLogisticGroupCo.,Ltd. SubsidiariesofWuliangyeGroup
Sichuan YibinWuliangyeGroupAnjiLogisticCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Yibin AnjiLogisticGroupShenzhouTransportationCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Yibin WuliangyeGroupI&ECo.,Ltd. SubsidiariesofWuliangyeGroup
Sichuan YibinPushGroup3DCo.,Ltd. SubsidiariesofWuliangyeGroup
Yibin HuanyuTradeCo.Ltd. SubsidiariesofWuliangyeGroup
Sichuan YibinPushMoldCo.,Ltd. SubsidiariesofPushGroupCompany
Sichuan PushAcetatiCompanyLimited SubsidiariesofPushGroupCompany
Sacred MountainMolinGroupCo.,Ltd.,Sichuan SubsidiariesofWuliangyeGroup
Sacred Garments&Home-TexCo.,Ltd.Yibin,Sichuan SubsidiariesofSacredMountainMolinCompany
Yibin ShengdiTradeCo.Ltd. SubsidiariesofSacredMountainMolinCompany
Yibin JinlongTradeDevelopmentCorporation SubsidiariesofWuliangyeGroup
Sichuan YibinGlobalGroupCo.,Ltd. SubsidiariesofWuliangyeGroup
Sichuan YibinLicaiGroupCo.,Ltd. SubsidiariesofWuliangyeGroup
Sichuan YibinGlobalGroupTianwoTradeCo.,Ltd. SubsidiariesofGlobalGroupCompany
Sichuan YibinWuliangyeGroupHealthWineCo.,Ltd. SubsidiariesofWuliangyeGroup
Sun DisplayCo.,Ltd. SubsidiariesofWuliangyeGroup
YCiob.i,nLGtdlo.balPhotoelectricEnergyConservationTechnology SubsidiariesofGlobalGroupCompany
Sichuan YibinPushDriveCo.,Ltd. SubsidiariesofPushGroupCompany
Chengdu PUTHMedicalPlasticsPackagingCo.,Ltd. SubsidiariesofPushGroupCompany
Sichuan YibinPushBuildingMaterialsCo.,Ltd. SubsidiariesofPushGroupCompany
Zhanjiang NorthPushInternalDevelopmentCo.,Ltd. SubsidiariesofPushGroupCompany
Sichuan YibinPushAutoPartsCo.,Ltd. SubsidiariesofPushGroupCompany
Push Information&Automation(Chengdu)Co.,Ltd. SubsidiariesofPushGroupCompany
Chengdu GlobalSpecialGlassManufacturingCo.,Ltd. SubsidiariesofGlobalGroupCompany
Sichuan ZhongkeBetterTechnologyCo.,Ltd. SubsidiariesofGlobalGroupCompany
RSiecsheuaarnchCCheon.,gLdtud.PushElectromechanicalTechnology SubsidiariesofPushGroup
LStidc.huanYibinWuliangyeGroupAnjiLogisticShippingCo., SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Yibin AnsageInternationalLogisticCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Yibin AnsageAutoServiceCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Sichuan YibinWeilisiFloatGlassManufacturingCo.,Ltd. SubsidiariesofGlobalGroupCompany
SMiacrhkueatinngYiCbion.,WLutdli.angyeGroupEcologicalBreweryand SubsidiariesofWuliangyeGroup
Sichuan HaidaRubberGroupCo.,Ltd. SubsidiariesofWuliangyeGroup
Sichuan TyreRubber(Group)Co.,Ltd. SubsidiariesofHaidaGroupCompany
Sichuan YibinPushIntelligentTechnologyCo.,Ltd. SubsidiariesofPushGroupCompany
Sichuan BaiweiyuanFoodCo.,Ltd. SubsidiariesofWuliangyeGroup
Chengdu BaiweiyuanCo.,Ltd. SubsidiariesofBaiweiyuan
PUSH NINGJIANGMACHINETOOLCO.,LTD. SubsidiariesofPushGroupCompany
Chengdu HuayuGlassManufacturingCo.,Ltd. SubsidiariesofGlobalGroupCompany
Chengdu NingjiangMachineToolSalesCo.,Ltd. SubsidiariesofPushGroupCompany
Yibin PushLinkoTechnologyCo.,Ltd. SubsidiariesofPushGroupCompany
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sichuan PutianTimesTechnologyCo.,Ltd. SubsidiariesofPushGroupCompany
Sichuan SacredMountainHechangClothingCo.,Ltd. SubsidiariesofSacredMountainMolinCompany
Chengdu SacredMountainClothingCompany SubsidiariesofSacredMountainMolinCompany
Yibin PushAssetsManagementCo.,Ltd. SubsidiariesofPushGroupCompany
Sichuan AnsageSupplyChainManagementCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Sichuan AndaxinLogisticCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Yibin GlobalEnergyConservationServiceCo.,Ltd. SubsidiariesofGlobalGroupCompany
Yibin WuliangyeEcologicalBrewingCo.,Ltd. SubsidiariesofHealthWineGroupCompany
Chengdu PushAutomobileMoldCo.,Ltd. SubsidiariesofPushGroupCompany
Chengdu WuLiangYeGrandHotelCo.,Ltd. SubsidiariesofWuliangyeGroup
Chengdu PuchuanBiomaterialsCorporation SubsidiariesofPushGroupCompany
Yibin JitaiAutomobileSales&ServiceCo.,Ltd. SubsidiariesofAnjiLogisticGroupCo.,Ltd.
Wuming TeaIndustryHoldingCo.,Ltd. SubsidiariesofWuliangyeGroupFundCompany
Sichuan LinhuTeaCo.,Ltd. SubsidiariesofWuliangyeGroupFundCompany
Yibin LeitianAgriculturalDevelopmentCo.,Ltd. SubsidiariesofWuliangyeGroupFundCompany
Sichuan HuanshengPharmacyCo.,Ltd. SubsidiariesofYibinMedicine
Sinopharm GroupYibinMedicineCo.,Ltd. SubsidiariesofWuliangyeGroup
Yibin PaperIndustryCo.,Ltd. SubsidiariesofWuliangyeGroup
5. Related transactions
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: RMB
Relatedparties Contrteanntsaocftrieolnated AmoupnetriniocdurrentTraqnusoatcationexWcheeetdhethreAmountin
approved transaction previousperiodquota
STricahdueaCnoY.,ibLintdG.lobalGroupTianwo Rawmaterials,etc. 301,983,377.21 270,592,103.32
Yibin ShengdiTradeCo.Ltd. Packingmaterials 174,572,272.41 200,245,417.69
CYiobripnoJriantlioonngTradeDevelopment Rawmaterials,etc. 290,706,070.30 140,555,177.69
Sichuan YibinPushMoldCo.,Ltd. Molds,rawmaterials,etc. 109,798,846.35 43,753,936.82
PCahceknaggdiungPCUoT.H,LMtde.dicalPlastics Rawmaterials 60,424,484.53 80,735,190.83
Sichuan YibinPushGroup3DCo.,Ltd. RFIDanti-counterfeitlabels,etc. 56,232,156.94 74,458,756.32
LCthde.ngduWuLiangYeGrandHotelCo., Liquors 30,479,352.83 1,613,275.98
SSaicchrueadnMountainMolinGroupCo.,Ltd., Uniformofexclusiveshop 26,945,284.35
Sichuan YibinPushDriveCo.,Ltd. Rawmaterials,etc. 23,294,806.98 34,745,347.66
SSaicchrueadnMountainMolinGroupCo.,Ltd., Laborprotecetitocn.appliances, 24,336,543.65
CCho.e,nLgtdd.uHuayuGlassManufacturing Rawmaterials 21,183,258.71 1,024,746.54
Yibin ShengdiTradeCo.Ltd. Laborprotectionappliances,etc. 16,696,955.69 46,333,353.57
LStidc.huanPutianTimesTechnologyCo., Slices,paper,etc. 11,196,877.60 20,591,824.63
Wuming TeaIndustryHoldingCo.,Ltd. Laborprotectionappliances,etc. 7,222,346.19
Yibin WuliangyeGroupI&ECo.,Ltd. Liquors 1,478,570.01 4,016,738.99
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Yibin AnsageAutoServiceCo.,Ltd. Gasoline 1,507,849.01 2,127,027.63
YSiabcinre,dSiGchaurmanents&Home-TexCo.,Ltd. Rawmaterials,etc. 1,478,897.85 137,456.65
Sichuan HuanshengPharmacyCo.,Ltd. Medicine 1,437,983.40
CSioc.h,uLatdn.YibinPushBuildingMaterials Rawmaterials,etc. 650,635.50 4,331,717.61
YSiebrivnicGeloCboa.l,ELtnde.rgyConservation Oxygen 594,774.05 3,657,643.70
CYiobninseGrvloabtiaolnPTheoctohenloelcotgriycCEon.e,rLgtyd. Rawmaterials,etc. 110,639.79 525,635.33
SMiacnhaugaenmAennstaCgeo.S,uLptdp.lyChain Grains 36,034,759.17
Henan AnhuaiGrainIndustryCo.,Ltd. Grains 11,970,731.15
LYtidb.inAnsageInternationalLogisticCo., Liquors 4,395,772.50
ZDheavnejlioapnmgeNnotrCthoP.,uLstdh.InternalRawmaterials 1,743,589.74
Yibin AnsageAutoServiceCo.,Ltd. Fragmentarymaterials,laborprotectionappliances,etc. 457,969.42
WSicinheuaCno.Y,iLbtind.WuliangyeGroupHealth Liquorsupplies,etc. 273,583.33
CMhaennugfadcutuGrilnogbaCloS.,pLetcdia.lGlass Rawmaterials 80,209.74
Sub-total ofoptrhoecrufrreamgmenetntaryrelated 1,317,285.93 1,028,812.89
Total relatedprocurement 1,163,649,269.28 985,430,778.90
Sichuan AnjiLogisticGroupCo.,Ltd. Ferexpigehntsaensd,emxitsecrenlalalnlaeboours 536,072,363.11 417,966,923.29
cost,etc.
LSoicghisutaicnCYoib.,inLWtd.uliangyeGroupAnji Ferexipgehnetsxapenesd,ncsmoeimss,cpeealtlcna.ynebouuss17,028,929.67 31,027,950.97
STeicchhunaonloYgiybiCnoP.,uLsthd.IntelligentMaintenancecost,etc. 8,903,084.34 19,713,844.60
LCthde.ngduWuLiangYeGrandHotelCo., Publicityexpense,etc. 5,406,017.06
YSiebrivnicGeloCboa.l,ELtnde.rgyConservation Wastewatertreatment,etc. 2,973,218.40
Yibin AnsageAutoServiceCo.,Ltd. Ferexpigehntsaensd,mmaisincetellnaannecoeu,s3,438,785.56 1,732,210.00
vehicle cost,etc.
Yibin PushLinkoTechnologyCo.,Ltd. Maintenancecost 1,607,648.75 1,455,359.22
MSiacnhaugaenmAennstaCgeo.S,uLptdp.lyChain Freightaenxdpemnissceesllaneous1,291,498.45 2,332,748.31
YSiabcinre,dSiGchaurmanents&Home-TexCo.,Ltd. Printingandproductioncost 1,180,111.07
LYtidb.inAnsageInternationalLogisticCo., Freighetxapnednsmeiss,ceeltlca.neous408,600.84 684,700.51
Sichuan YibinPushMoldCo.,Ltd. Maintenancecost,etc. 764,669.97 3,903,408.28
SLoicghisutaicnSYhibipinpiWngulCiaon.g,yLetdG.roupAnji Freightaenxdpemnissceesllaneous 1,468,893.13
CChoe.,nLgtdd.uHuayuGlassManufacturing Laborcost 4,455,308.75
Yibin AnsageAutoServiceCo.,Ltd. Publicityexpense 568,030.23
CYiobninseGrvloabtiaolnPTheoctohenloelcotgriycCEon.e,rLgtyd. Maintenancecost 166,833.02 555,886.11
CPahceknaggdiungPCUoT.H,LMtde.dicalPlastics Outsourcedeptrco.cessingfee, 502,517.51
Sub-totalofothreercferaivgemdentaryservices 495,604.90 988,149.88
Totalservicesreceived 579,737,365.14 487,355,930.79
RNeoltaete1d: OtrnanJsaancutiaorny o1f, p2u0r1c8h,atsheesCoofmgopoadnsy aanndd aYcibcienpStahnecnegodfi sTerarvdieceCso. Ltd. entered into the LaborPprroodteuccttisontoApthpeliaCnocmespaannyd bPaascekdingonBaitgssnSeuepdpslyfoAr gprreoedmucetniot,naaccnodrdoipnegratotiownh.icThhetheColamttpear nsyhaclol nsduupcptlys
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
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t1h,e20p1ro8dtuoctDioenceamndbeurs3e1. ,T2h0e2p0r.oducts are paid at the market price. The Agreement is valid from January
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partsSdtautreinmgetnhteowf asarrlaenstyofpgeoriooddsa/pnrdovoisthioenr roeflesvearvnitceitsems.
Unit: RMB
Relatedparties Contentofrelated Amountincurrent Amountinprevioustransactionperiod period
Yibin WuliangyeGroupI&ECo.,Ltd. Liquorproducts 652,880,429.95 715,766,573.69
Sichuan PutianTimesTechnologyCo.,Ltd. Bottlecaps,slices,etc. 191,905,219.10 252,780,516.68
Sichuan YibinPushAutoPartsCo.,Ltd. Rawmaterials,etc. 75,061,728.49
CCoh.e,nLgtdd.uPUTHMedicalPlasticsPackaging mSalicteersia,lcso,ieletcd. 51,564,215.88 66,978,102.10
LStidc.huanYibinGlobalGroupTianwoTradeCo., Glapsrsobdoutctltess,,eptca.per 57,930,524.81 3,624,383.37
Yibin JinlongTradeDevelopmentCorporation Lacticacid 47,502,991.20
LStidc.huanYibinGlobalGroupTianwoTradeCo., Inducsatrrbiaolnsaotdeium 37,516,574.09 3,730,065.14
Sichuan YibinGlobalGroupCo.,Ltd. Rawmaterials,etc. 28,853,048.01
LStidc.huanYibinGlobalGroupTianwoTradeCo., Slices 28,286,548.75
Chengdu WuLiangYeGrandHotelCo.,Ltd. Liquorproducts 27,523,335.87 89,429,112.08
Sichuan YibinPushDriveCo.,Ltd. Slices,etc. 22,399,640.97 24,701,982.94
CSioc.h,uLatdn.SacredMountainHechangClothing Plasticproducts 18,004,711.29 21,408,586.54
BSircehwuearnyYainbdinMWaurklieatninggyeCGo.r,oLutpd.EcologicalLiquorproducts 16,286,898.80 93,551,948.14
Sichuan YibinPushBuildingMaterialsCo.,Ltd. Slices,etc. 15,991,958.85 33,859,217.64
Chengdu HuayuGlassManufacturingCo.,Ltd. Cartons,glassbottles,etc. 14,907,215.21 18,000,848.73
SSiacchrueadnGarments&Home-TexCo.,Ltd.Yibin, Hangtags,labels,etc. 7,907,456.49 9,486,111.04
Yibin JinlongTradeDevelopmentCorporation Liquorproducts 7,870,256.50 1,283,015.48
Yibin HuanyuTradeCo.Ltd. Liquorproducts 6,626,332.05 8,705,848.56
LStidc.huanYibinGlobalGroupTianwoTradeCo., Coal 5,387,532.19 25,288,327.96
Yibin JinlongTradeDevelopmentCorporation Mixedgrains,DDGS 4,004,260.39 3,578,166.77
SBricehwuearnyYainbdinMWaurklieatninggyeCGo.r,oLutpd.EcologicalBottlebocxaepss,,eptac.cking 3,713,386.76 5,585,316.28
Sichuan LinhuTeaCo.,Ltd. Liquorproducts 1,811,362.84
PLtuds.hInformation&Automation(Chengdu)Co., Botbtloettcleasp,se,tgcl.ass 1,073,093.87 2,865,375.88
Yibin LeitianAgriculturalDevelopmentCo.,Ltd. Liquorproducts 1,015,752.21
Yibin WuliangyeEcologicalBrewingCo.,Ltd. Paperproducts 822,205.32 1,941,370.22
Sun DisplayCo.,Ltd. Steam,etc. 806,692.32 777,618.96
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
SCioc.h,uLatdn.YibinWuliangyeGroupHealthWine Liquorproducts 565,230.53 97,688,287.32
Wuming TeaIndustryHoldingCo.,Ltd. Liquorproducts 632,792.69
Sichuan YibinWuliangyeGroupCo.,Ltd. Liquorproducts,etc. 542,768.10 465,934.01
Yibin PushLinkoTechnologyCo.,Ltd. Wastewatertreatment,etc. 535,218.99 502,658.51
Sichuan YibinPushMoldCo.,Ltd. Plasticproducts 531,795.45 679,915.51
PUSH NINGJIANGMACHINETOOLCO.,LTD. Liquorproducts 530,973.45 517,241.38
Sichuan YibinPushAutoPartsCo.,Ltd. Wastewatertreatment,etc. 461,382.07 427,386.04
Sinopharm GroupYibinMedicineCo.,Ltd. Liquorproducts 526,341.62
Chengdu PushAutomobileMoldCo.,Ltd. Wastewatertreatment,etc. 486,638.80 393,731.33
Sichuan LinhuTeaCo.,Ltd. Packingmaterials 477,876.11
Yibin WuliangyeGroupI&ECo.,Ltd. Sheets,sundries,etc. 462,595.80 206,432.39
Sichuan YibinPushBuildingMaterialsCo.,Ltd. Wastewatertreatment,etc. 425,882.28 427,194.42
Yibin PaperIndustryCo.,Ltd. Paperproducts 350,401.70
CSioc.h,uLatdn.YibinWuliangyeGroupAnjiLogistic Sundries,etc. 314,273.67 467,332.45
Yibin WuliangyeEcologicalBrewingCo.,Ltd. Steam 275,691.26 440,017.00
Sichuan YibinPushGroup3DCo.,Ltd. Liquorproducts 155,778.51 574,465.81
Chengdu PuchuanBiomaterialsCorporation Slicesandbottlecaps 133,791.16 558,222.83
Sichuan PushAcetatiCompanyLimited Rawmaterials,etc. 125,985.74 1,724,236.91
Sichuan YibinPushGroup3DCo.,Ltd. matSehrieaelsts,,larsoellerdfilm, 57,559.00 2,039,166.27
etc.
Sichuan YibinGlobalGroupCo.,Ltd. Liquorproducts 26,666.28 698,146.86
Sichuan TyreRubber(Group)Co.,Ltd. Liquorproducts 7,964.60 1,344,827.58
Yibin HuanyuTradeCo.Ltd. Chuan-shapedtray 2,905,351.90
Yibin WuliangyeEcologicalBrewingCo.,Ltd. Liquorproducts 744,175.51
Chengdu SacredMountainClothingCompany Paperproducts 157,986.71
Otherfragmentarysales 1,765,907.27 1,777,217.89
Total 1,337,046,887.29 1,498,082,416.83
NRoetlaete1d: OtrnanJsaancutaiorny 1o,f 2s0a1le8s, othfegoCoodmspaanndyparnodviYsiiobninoWf sueliravnicgeyse Group I&E Co., Ltd. entered into thetEhxepoCrotmCpoamnmyotoditIi&eEs PCuormchpaasneyaisndfloSaatilnegs.ATghreeesmupepnlty. Tphriecepr(itcaex oefxtchluesaivger)eeism7e0n%t p-7ro3d%ucotfstshuepapvlieerdagbeysCeolmlinpganpyricsehapllegrivbeottthlee CofomI&pEanCyopmripoarnwyrititnenthneotpicreevoiof usspemciofincthre.qAucirceomrdeinntgs ftoor tshpeecAifgicraeteiomne,nmt,oId&eEl,tpoacthkeagdienmg,aanndtsi-coofuthneteirnfeteitrnlaabtieoln, aqlumanatritkye,ta, nadnddeplrieveprayyt6e0rm%oofftthheeWpuurlciahnagsyeepsreicreietsoptrhoedCucotms paacncoy.rdTihnegCacocmoprdainngy stohatlhl eoregxapnoizret dtheemparnoddsucotifoIn&aEnCd osmupppalnyyW. TuhliaenAgygereseemrieenstliiqsuvoar lpidrofdroumctsJiannauatirmy e1ly, 2m0a1n8netorDeceNmobteer23: 1O,n20Ja2n0u. ary 1, 2018, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery
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and date of delivery of the base liquor according to the market demands. The Company shall supply the
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
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stopeDceifcicemsableers3c1o,n2tr0a2c0t .for settlement of the purchase price. The Agreement is valid from January 1, 2018
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Ltd. Nenotteere8d: OinntoJathneuaFryra2m3e, w20o1rk8,CthoentrCaocmt, paacncyoradnindgStiochwuahnichSathcreedlaMtteorusnhtaailnl pHreocchuarengraCwlomthaintgerCiaols.,,
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w31a,re2h0o2u0s. ed after the arrival and acceptance. The Agreement is valid from January 1, 2018 to December
enterNeodtein1to0: tOhen FJaranmuaerwyo2rk2,C2o0n1t8ra, ctth,eaCccoomrdpianngytoanwdhSicichhuthaen lPauttteiarnshTaimllepsroTceucrhenorlaowgymCaot.e,riLatlds.,
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Related-party lease
The Company as the lessor:
Unit: RMB
Name oflessee TypeasosfeletsasedLeaseinrceuvrerneunetpreecrioogdnizedrecoLgenaizspeeedrreiionvdepnreuveious
CChoe.,nLgtdd.uPUTHMedicalPlasticsPackaging Equipment 814,150.22
SLtidc.huanYibinPushBuildingMaterialsCo., Warehouse 663,267.96 663,267.96
CSioc.h,uLatdn.YibinGlobalGroupTianwoTrade Buildings 375,599.99 24,642.86
Sichuan PutianTimesTechnologyCo.,Ltd. Housesandwarehouses 303,326.53 142,742.12
CYiobninseGrvloabtiaolnPTheoctohenloelcotgriycCEon.e,rLgtyd. Buildings 226,285.72 142,993.25
Sichuan AnjiLogisticGroupCo.,Ltd. Buildings 169,268.48
CSioc.h,uLatdn.YibinPushIntelligentTechnology Equipment 57,142.86
Sichuan PutianTimesTechnologyCo.,Ltd. Equipment 52,907.76 65,682.50
CSioc.h,uLatdn.YibinPushIntelligentTechnology Buildings 28,436.65
CLthde.ngduHuayuGlassManufacturingCo., Buildings 5,528.57 27,171.43
The Company as the lessee:
Unit: RMB
Nameoflessor Typeofleasedassets Rentsrecognizedin Rentsrecognizedincurrentperiod previousperiod
Sichuan YibinWuliangyeGroupCo.,Ltd. Land 296,558,180.00 296,558,180.00
Sichuan AnjiLogisticGroupCo.,Ltd. Warehouse 39,453,231.04 47,369,747.05
Sichuan YibinWuliangyeGroupCo.,Ltd. Operationandmanagementareas 29,822,513.62 29,735,256.48
Sichuan YibinLicaiGroupCo.,Ltd. Buildings 15,512,748.60 15,512,748.60
Sichuan YibinPushGroup3DCo.,Ltd. Operationandmanagementareas 6,715,238.10 6,715,238.10
LCthde.ngduHuayuGlassManufacturingCo., Equipment 4,289,229.22 1,966,163.65
CYiobninseGrvloabtiaolnPTheoctohenloelcotgriycCEon.e,rLgtyd. Warehouse 3,349,628.67 2,426,766.75
Sichuan YibinGlobalGroupCo.,Ltd. Warehouse 2,989,811.34 2,690,830.18
Yibin PushAssetsManagementCo.,Ltd. Warehouse 2,941,500.95 1,907,855.24
Sichuan AndaxinLogisticCo.,Ltd. Warehouse 2,867,086.53 5,351,148.12
Yibin PushLinkoTechnologyCo.,Ltd. Warehousesandhouses 2,345,358.51 1,933,924.54
Sichuan YibinPushGroup3DCo.,Ltd. Warehouse 1,865,139.63 3,108,566.05
CYiobninseGrvloabtiaolnPTheoctohenloelcotgriycCEon.e,rLgtyd. Equipment 1,534,759.71
SCioc.h,uLatdn.YibinGlobalGroupTianwoTrade Warehouse 1,228,525.72 1,433,280.01
Yibin PushLinkoTechnologyCo.,Ltd. Equipment 768,000.00
SLoicghisutaicnCYoib.,inLtWd.uliangyeGroupAnji Warehouse 111,566.01
MSiacnhaugaenmAennstaCgeo.S,uLptdp.lyChain Warehouse 44,719.64 664,717.82
MSiacnhuufaanctYuirbiningWCeoi.l,isLitFdl.oatGlass Equipment 14,455.75 67,015.69
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
LCthde.ngduHuayuGlassManufacturingCo., Buildings 195,816.96
Sichuan AnjiLogisticGroupCo.,Ltd. Vehicles 151,834.95
NNoottee o1n: OrenlaJteadn-upaarryty1l,e2a0se18, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. enteredionwtonethdrebey iLtatnodthLeeaCsoemApagnreye. mTheentsle,aascecdoradrienags taorewh2i,c3h15W,3u4l9ia.n0g8y, e72G4r,9o5u8p.1le7aasensd t6h6r6e,e67p0lo.0ts0 osfqulaanredrmeespteercst,ivweiltyh, tthoetaalinngnuRaMl rBen2ts96o.f5R58M2Bm1i8ll5io.n2.27T9hemliellaiosne, RteMrmB i5s7f.r9o9m67Jamniulliaorny a1n,d20R1M8Bto53D.e3c3e3m6 bmeirlli3o1n,,2020L.and price criterion:
formuTlhaetedlanwdithleraesfeerepnricceintgo tphoeliclaynodflethaeseCcorimtepriaonnyoaf npdrevSiiocuhsuayneaYrsibainndWinulaiacncgoyredaGncroeuwpitChoth.,eLRtde.pilsy
LofaYndibLineLaasendCRriteesroiounrc(eYGAdTmHin(2is0t1ra0t)ioNnoB. u5r3e,aMuaornchth1e2R, 2e0q1u0e)s,twohf iWchuslitaantignygethGarto“utpheforreAntdojufsRtmMeBnt5o0f-1th1e0
pYeibrins”q.uTahree mCoemtepr apneyr ayenadrWfourlitahnegiyneduGsrtoriuapl ldaentderinmitnheistahreeareinst coofnlesaissteendt lawnitdh apsreRvaMilBing80lapnedrpsrqicuearoef
meteNr opteer 2y:eaOrnthJraonuugahrym1u,tu2a0l1a8g,retheemCenotm. pany and Sichuan Yibin Wuliangye Group Co., Ltd. entered
linetaosethsepaOrtpoefrathtieonopaenrdatiMonanaangdemmaennatgAermeaesntLaeraesaes (Aingcrleuedminegntth,eaocfcfiocredibnugildtoingw,hmicuhltiW-fuunlicatniognyepaGvirloiounp,
RetMc.B) o2w9n.2e5d6bmyililtioton.thTeheCloemaspeanteyr.mThisefrleoamseJdanauraerayis1,2270,11281t.o32Descqeumarbeemr 3e1te, r2s0,2w0i.th the annual rent of
the FNaocteto3ry: OBnuiDldeincgemLbeearse29C, 2o0n1tr7a,ctth, eaCccoomrdpianngytaonwd hSicichhuLaicnaYi ibGinroLuipcalieGasroeusptCheo.,hLigtdh.-eenndterperdodinutcot
wmoertkesrsh,owpitbhutihldeinagnn(1uFa-l5reFn) ta(ttaixtsinhceluasdiqvuea) rotef rRMtoBth1e6,C28o8m,3p8a6n.y0.0T. hTeheleAagsreedemareenat iiss v2a0li,d55fr7o.m30Jsaqnuuaarrey
1, 20N1o8teto4D: eOcnemJabneura3r1y,12,022001.8, the Company and Sichuan Yibin Push Group 3D Co., Ltd. entered into
othffeicOe pbeurialdtiionng aloncdatMedanaatgNemo.en1t50A,reWasesLteMasinejiaAnggreRemoaedn,t,Yaibcicnoradnindgatlol owffhicicehePquusiphmGenrotuipn ltehaeseosfficites
mbuilillidoinn.gTthoethleeaCsoemtepramnyis. TfrhoemleJaasneudarayre1a, 2is0168,5t3o6D.7e0cseqmubaerer 3m1e, t2e0rs2,0w. ith the annual rent of RMB 7.051
(3) GThuearCaonmtepeawnyithhardelnaotegduapraarntiteese with related parties during the reporting period.
(4) LToheanCsoamnpdanbyorhraodwninoglosawnsithanredlabtoerdropwainrgtiseswith related parties during the reporting period.
(5) AThsesreetsistrnaonassfeser tasntdradnsefbetr raensdtrduecbtut rreinsgtruwcittuhrinreglawtiethd rpealartteiedsparties during the reporting period.
(6) Key management personnel remuneration
Unit: RMB ’0,000
Item Amountincurrentperiod Amountinpreviousperiod
Key marneamguenmeernattiopnersonnel 744.12 1,247.09
(7) Other related transactions
① Procurement of equipment, etc. Unit: RMB Yuan
Related parties Contentofrelatedtransaction Amoupnetriniocdurrent Amounpteinriopdrevious
SichuanYibinWuliangyeGroupCo.,Ltd. Trademarkandlogoroyalties(Note1) 577,396,281.55 480,734,618.78
SichuanYibinWuliangyeGroupCo.,Ltd.Comprehensive servicefee(Note2) 67,434,207.22 85,711,430.00
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
SichuanYibinPushGroup3DCo.,Ltd. Trademarkmaintenanceandpatentfee 9,433.96
STeicchhunaonlogyCYoib.,inLtd.Push Intelligent Procurementofequipment 15,872,532.05 14,906,871.31
SYiebrivniceGCloo.b,aLltd.Energy Conservation No.4GlassKPirlnojeGcatsTreatment 3,873,909.03
YibinPushLinkoTechnologyCo.,Ltd. Purchaseofequipment 764,000.00 1,729,342.74
CPahceknaggdiungCPoU.,TLHtd.Medical Plastics Procurementofequipment 599,660.55 4,578,287.87
(PCuhsehngduIn)fCorom.,aLtitodn.& Automation Procurementofequipment 474,641.40
YibinAnsageAutoServiceCo.,Ltd. Purchaseoftransportationequipment 154,708.16 1,123,325.36
TSricahdueaCno.,YLibtdin.Global Group Tianwo Procurementofequipment 70,580.50
YibinWuliangyeGroupI&ECo.,Ltd. Procurementofequipment 4,150,086.00
SLoicghisutaicnCYo.i,bLintd.WuliangyeGroup Anji Purchaseeqoufiptrmanesnptortation 1,636,767.74
CYiob.i,nLtJdit.aiAutomobile Sales & Service Purchaseeqoufiptrmanesnptortation 1,604,260.35
YCiobninservGatloiobnaTlechPnhooltoogeyleCctor.ic,LtdE.nergyPraiipnealinnedrseecwtiaficgaetidoinveprrsoiojenctporofjtehcet 1,435,725.54
SCioc.h,uLatdn.Zhongke Better Technology Purchaseofequipment 599,300.00
SLtidc.huanPutian Times Technology Co., Purchaseofequipment 45,791.46
LYtidb.inPush Assets Management Co., Procurementofequipment 255,770.63
STricahdueaCno.,YLibtdin.Global Group Tianwo Sellingofequipment 2,767.20
into tNhoeteTr1a:dOemnaJraknaunadryL1o,g2o0L1i8c,enthseinCgoAmgpreaenmy eanntd, wShicichhuasnpeYcibifiinesWthualita:nWgyueliaGnrgoyuepGCroo.u,pLtldic.eennsteesretdo
ttrhaedeCmomarpkas,neyxtchluesnivoenreigxhcltuosfivueserigohf t13o0f tursaedeomf a1rkfsa,catonrdy uenmpabildemex, ctlhuesivneonriegxhctluosf iuvseeroigfh4t toraf duesmeaorkf s8.
1T.h2e7%royoaflttyheshaanllnubael psaaildesbyretvheenufoellofrwoimngamll eliqaunos:r p①rodTuhcetsrouysainltgy tohfe“f“afactcotoryryeemmbblelemm” ”s;h②all Nbeo proayidalatyt
rsohyaallltbyeopf atriaddfeomr tararkdeomf laiqrukoorfplirqoudourcptsrosdouldctbsyof5w0 htoicnhst(hinecalunsniuvea)l soar lmesorreevsehnaullebies lceaslscuthlaatend50bytothnes,taontadl
psaroledsucvtsoluwmithe.seRlloinygaltpierisceoaf ttrRaMdeBm3a0rk,00s0hapllerbteonpaainddbaybothvee sfohlalollwbinegRmMeBa1n,s5:0T0rapdeer mtoanr;kanrodyathltayt ooff
RprModBuc1t,s40w0itphesretlolinn;gthparitceofaptroRdMuBcts12w,i0th00seplelinr gtopnriacendbealboowveRMbuBt b1e2l,o0w00RsMhaBll3b0e,0R0M0 Bpe1r,3to0n0 sphearlltobne.
The ANgorteee2m: eOnnt isJavnauliadryfro1m, 2J0a1n8u,atrhye1C, 2o0m1p8atnoyDaencdemSibcehru3a1n,Y2i0b2in0.Wuliangye Group Co., Ltd. entered
isnetrovitcheetoCtohmepCreohmepnasnivyebSyethrveicqeuaAngtriteyeamgerenet,dabcycobrodtihngpatrotiewshfircohmthtiemelatttoertimshea. lBl optrhovpiadretiethsemaegarseuerde
ytheearsesrhvaicllebseantothmeoarcetuthaal ncotshte, ainnfdlatthioenriantdeeoxfoinf cprreeavsioeuosfytheearupnliutsco5s%t porrictehecogmropwatrhedfawctiothr othfecopnresvuimouesr
wprhiceeninthdeexsoefrvSicicehusacnopPeroivsinecxep,awnhdiecdh,evaenrdisthloewseer.rvTihcee isnhcarellassteillshbaellmnoetabsuerseudbajetctthteo tahcetuaablocvoesltimoift
provision of the service. The Agreement is valid from January 1, 2018 to December 31, 2020.
② Association relationship with Sichuan Yibin Wuliangye Group Finance Co., Ltd.FinanTchieal CSoemrvpiacenyAsgigreneemdetnhte wFiitnhanthceialFSinearvniccee ACgormeepmaneyntoanndApthriel 1S2u,p2p0le1m8enatnadl AMgarercehme2n0t, t2o01th9e,rweisthpethcetivFeilnya. nTchee Cmoaminpcaonnyteinnt2s0a1r9e wloaasnnaondmdoerepothsiatnseRrvMicBes3.2D.9abilyillbioanla, nacned othfededpaoilsyitbsaolaf nthceeCoof mloapnaniny2019 was no more than RMB 2.5 billion.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
end Tohf ethtoetapledreiopdo;sSitsicohfuathne YCiobminpWanuyliawnitghyetheGFroinuapncCeo.C, oLmtdp.anisysuweads tRhMe BCo3m2,m40it5m,1e0n7t,4L3e4tt.e5r8 taot tthhee
Cthoemcpuarrneyn,tainssteurreinsgt rtehvaetnreuleevisanRtMdeBp5o6s8it,s8a3n7d,2l0o7a.n1s8oinf tthoetaCl.ompany with the Finance Company are safe;
6. Receivables from and payables to related parties
(1) Receivables
Unit: RMB
Project name Relatedparties Endingbalance Beginningbalance
Book balance Baddebt BaddebtprovisionBookbalance provision
rAeccecoivuanbtlseSichuanPutianTimesTechnologyCo.,Ltd. 31,324,539.34 46,140,333.20
rAeccecoivuanbtlseSBricehwuearnyYainbdinMWaurklieatninggyeCGo.r,oLutpd.Ecological9,512,479.81
rAeccecoivuanbtlseCLthde.ngduPUTHMedicalPlasticsPackagingCo., 8,420,650.88
rAeccecoivuanbtlseChengduHuayuGlassManufacturingCo.,Ltd. 3,779,810.70 4,479,320.27
rAeccecoivuanbtlseLPtuds.hInformation&Automation(Chengdu)Co., 709,868.22
rAeccecoivuanbtlseSichuanYibinGlobalGroupTianwoTradeCo.,Ltd. 507,527.52
rAeccecoivuanbtlseSLtidc.huanYibinWuliangyeGroupHealthWineCo., 319,302.00 301,709.76
rAeccecoivuanbtlseSichuanYibinPushGroup3DCo.,Ltd. 430,645.02
rAeccecoivuanbtlseChengduPuchuanBiomaterialsCorporation 304,200.00
Prepayment SacredMountainMolinGroupCo.,Ltd.,Sichuan 8,283,185.84
Prepayment SichuanAnjiLogisticGroupCo.,Ltd. 997,853.00 827,429.00
Prepayment SichuanYibinPushDriveCo.,Ltd. 1,884,151.79
Prepayment SichuanYibinPushIntelligentTechnologyCo.,Ltd. 314,700.00 923,000.00
Prepayment YibinAnsageAutoServiceCo.,Ltd. 9,300.18 41,124.46
Prepayment YibinWuliangyeGroupI&ECo.,Ltd. 1,228,373.04
Prepayment ChengduNingjiangMachineToolSalesCo.,Ltd. 405,000.00
Prepayment PushInformation&Automation(Chengdu)Co.,Ltd. 275,292.00
Prepayment SichuanAnsageSupplyChainManagementCo.,Ltd. 16,597.48
reIcneteivreasbtleSichuanYibinWuliangyeGroupFinanceCo.,Ltd. 531,981,058.33 236,778,826.86
recOeitvhaebrlesSLtidc.huanYibinWuliangyeGroupHealthWineCo., 480,000.00 100,000.00
recOeitvhaebrlesSichuanAnjiLogisticGroupCo.,Ltd. 450,000.00 450,000.00
recOeitvhaebrlesSichuanPutianTimesTechnologyCo.,Ltd. 250,000.00 250,000.00
recOeitvhaebrlesChengduHuayuGlassManufacturingCo.,Ltd. 200,000.00
recOeitvhaebrlesYibinWuliangyeEcologicalBrewingCo.,Ltd. 122,727.27 122,727.27
recOeitvhaebrlesSSaicchrueadnGarments&Home-TexCo.,Ltd.Yibin, 70,000.00 20,000.00
recOeitvhaebrlesSichuanLinhuTeaCo.,Ltd. 50,000.00
recOeitvhaebrlesSichuanYibinPushDriveCo.,Ltd. 7,016.11
recOeitvhaebrlesOrientalOutlookMediaCo.,Ltd. 1,000,000.00
recOeitvhaebrlesSichuanPushAcetatiCompanyLimited 141,169.23
(2) Payables
Unit: RMB
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Projectname Relatedparties Endingbookbalance Beginningbookbalance
ApcacyoaubnletsSichuanYibinPushGroup3DCo.,Ltd. 14,475,469.14 9,317,707.27
ApcacyoaubnletsSichuanYibinWuliangyeGroupCo.,Ltd. 7,634,607.30
ApcacyoaubnletsCChoe.,nLgtdd.uPUTHMedicalPlasticsPackaging 1,170,859.61 310,243.95
ApcacyoaubnletsSCioc.h,uLatdn.AnsageSupplyChainManagement 334,704.03
ApcacyoaubnletsSichuanAnjiLogisticGroupCo.,Ltd. 292,692.00 995,909.05
ApcacyoaubnletsSLtidc.huanYibinPushIntelligentTechnologyCo., 235,712.98 1,048,057.39
ApcacyoaubnletsSichuanAndaxinLogisticCo.,Ltd. 182,250.00 182,250.00
ApcacyoaubnletsCLthde.ngduNingjiangMachineToolSalesCo., 180,000.00
ApcacyoaubnletsSCioc.h,uLatdn.YibinWuliangyeGroupAnjiLogistic 414,303.16 772,781.44
ApcacyoaubnletsSichuanPutianTimesTechnologyCo.,Ltd. 111,293.30 288,124.24
ApcacyoaubnletsPLtuds.hInformation&Automation(Chengdu)Co., 55,058.40
ApcacyoaubnletsSLtidc.huanYibinGlobalGroupTianwoTradeCo., 30,066.98 9,620,450.94
ApcacyoaubnletsSichuanYibinPushMoldCo.,Ltd. 2,023,240.73
ApcacyoaubnletsYTeibcihnnGolloobgaylCPoh.o,tLotedl.ectricEnergyConservation 1,003,423.68
ApcacyoaubnletsSichuanYibinPushDriveCo.,Ltd. 914,307.08
ApcacyoaubnletsYibinAnsageInternationalLogisticCo.,Ltd. 708,082.72
ApcacyoaubnletsYLtidb.inGlobalEnergyConservationServiceCo., 440,382.34
reAcceciovuendtsinSichuanYibinPushBuildingMaterialsCo.,Ltd. 4,942,728.12 768,890.93
Aacdcvoaunnctes
reacdeviavendceinYibinWuliangyeEcologicalBrewingCo.,Ltd. 736,363.64
reAcceciovuendtsinYibinState-OwnedAssetsOperationCo.,Ltd. 439,000.00 439,000.00
Aacdcvoaunnctes
reacdeviavendceinSichuanLinhuTeaCo.,Ltd. 375,600.00
reAcceciovuendtsinWumingTeaIndustryHoldingCo.,Ltd. 267,600.00
Aacdcvoaunnctes
reacdeviavendceinTYribainnsAponrjitaLtoiognisCtico.G,Lrotdu.pShenzhou 208,248.14 208,248.14
reAcceciovuendtsinSichuanYibinPushGroup3DCo.,Ltd. 96,012.00 91,245.60
Aacdcvoaunnctes
reacdeviavendceinYibinWuliangyeGroupI&ECo.,Ltd. 83,711.24 39,723.28
reAcceciovuendtsinSichuanPutianTimesTechnologyCo.,Ltd. 82,640.00 63,000.00
Aacdcvoaunnctes
reacdeviavendceinBSricehwuearnyYainbdinMWaurklieatninggyeCGo.r,oLutpd.Ecological 66,440.00
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
reAaccdecvioavuenndctesinSLtidc.huanYibinGlobalGroupTianwoTradeCo., 6,000.00
reAcceciovuendtsinChengduWuLiangYeGrandHotelCo.,Ltd. 2,773,800.00
Aacdcvoaunnctes
reacdeviavendceinCCho.e,nLgtdd.uPUTHMedicalPlasticsPackaging 1,423,092.79
reAaccdecvioavuenndctesinSSiacchrueadnGarments&Home-TexCo.,Ltd.Yibin, 1,286,036.78
reAcceciovuendtsinSichuanYibinWuliangyeGroupHealthWine
advance Co.,Ltd. 111,930.00
Notespayable WumingTeaIndustryHoldingCo.,Ltd. 320,000.00
Notespayable SichuanAnsageSupplyChainManagementCo.,Ltd. 280,000.00 3,000,000.00
Notespayable SichuanYibinGlobalGroupTianwoTradeCo.,Ltd. 7,602,788.13
Notespayable SichuanYibinLicaiGroupCo.,Ltd. 4,639,778.95
Notespayable SichuanPutianTimesTechnologyCo.,Ltd. 273,907.12
Other payables SichuanYibinWuliangyeGroupCo.,Ltd. 136,248,128.58 13,348,251.69
Other payables SichuanYibinPushIntelligentTechnologyCo.,Ltd. 2,920,492.15 2,147,079.35
Other payables SichuanPutianTimesTechnologyCo.,Ltd. 1,976,478.00 477,063.00
Other payables SichuanAnjiLogisticGroupCo.,Ltd. 673,087.45 644,597.45
Other payables YibinPushLinkoTechnologyCo.,Ltd. 528,426.44 301,348.00
Other payables ChengduPUTHMedicalPlasticsPackagingCo.,Ltd. 357,761.64 290,000.00
Other payables SichuanYibinWuliangyeGroupAnjiLogisticCo.,Ltd. 137,790.43
Other payables YibinGlobalPhotoelectricEnergyConservationTechnologyCo.,Ltd. 110,569.94 223,885.30
Other payables SichuanChengduPushElectromechanicalTechnologyResearchCo.,Ltd. 70,000.00
Other payables SichuanYibinGlobalGroupTianwoTradeCo.,Ltd. 70,000.00
Other payables SichuanYibinPushBuildingMaterialsCo.,Ltd. 55,000.00 55,000.00
Other payables YibinState-OwnedAssetsOperationCo.,Ltd. 50,000.00 50,000.00
Other payables SichuanLinhuTeaCo.,Ltd. 50,000.00
Other payables YibinAnsageInternationalLogisticCo.,Ltd. 36,586.85 36,586.85
Other payables YibinAnsageAutoServiceCo.,Ltd. 25,000.00 5,000.00
Other payables SacredMountainMolinGroupCo.,Ltd.,Sichuan 16,610.00
Other payables ChengduSacredMountainClothingCompany 13,421.80
Other payables ChengduNingjiangMachineToolSalesCo.,Ltd. 10,000.00 80,000.00
Other payables YibinShengdiTradeCo.Ltd. 5,000.00 5,000.00
Other payables SacredGarments&Home-TexCo.,Ltd.Yibin,Sichuan 3,000.00 3,000.00
Other payables SichuanAnsageSupplyChainManagementCo.,Ltd. 2,036.28 50,000.00
Other payables YibinGlobalEnergyConservationServiceCo.,Ltd. 740,000.00
Other payables ChengduWuLiangYeGrandHotelCo.,Ltd. 10,000.00
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
XI. Commitments and contingencies
1. Significant commitments
perioTdh.e Company had no significant commitments which need to be disclosed during the reporting
2. Contingencies
perioTdh.e Company had no significant contingencies which need to be disclosed during the reporting
XII. Post-balance sheet events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.2. Profit distribution
the pArsofritesdoislvtreibdubtiyonthepl7a3nrdofm2e0e1ti9ngiso: fRthMeB5t2h2bo(taarxd ionfcdluirseivceto)rsinocfathseh Cwoilml bpeandyishterilbduotendAfporril e2v4e, r2y02100,
sahpaprreosv,alaonfdthneogceanpeirtaall mreeseetrinvge. will be transferred to capital stock. This plan shall be subject to the
3. Note on other post-balance sheet events
The Company has no other post-balance sheet events which need to be disclosed.XIII. Other significant matters
1. Pension plan
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tHhuemCaonmRpeasnoyur(cYeGsZaWnd[S20o1c8ia]l NSoe.c2u2ri1ty) oofnSSicehputeamn Pberorv1in4c,e2o0n18O, catonbdehra3d0,fi2le0d18w. ith the Department of
enterPeadrtiicnitpoanlatbsoor fctohnetraccotrspowraithte thpeenCsioomnppalnayn; o(2f )thEempCloomyepeasnywhinoclpuadreti:ci(p1a)teEminptloheyebeassiwchooldh-aagvee
iannsdur(a3n)cEemspylsotyeemesfowr henotearrperiosne deumtyplaoynedersegaicscteorredding(etxocltuhdeinlagwthaendprpoebrafotiromn ptheerioodb)ligwaitlliopnaortficpipaaytmeetnhte;
corpoErxapteenpseenssiofonrptlahne ocnoarpvooralutentapreynbsaiosnis. shall be shared by the Company and the employees.
Ccoonnttrriibbuuttiioonn bbaysaenoefmthpeloeyemeplsohyaelel bseha3l%l boef tthhee caovnetrraibguetiownagbeasine othfesupcrheveiomupsloyyeeaer,. aTnodtalthaemmoounnttholyf
dcoisntrtirbibuutetidontobyintdhieviCduoaml paacncyousnhtasllobfeth5e%eomf pthloeyteoetasl aatnn3u%alowf athgee pcoanidtrbibyutthioenCboamsepaonfyt,hweheicmhpslhoayellebse,
pwehrisleontnheel wrehmoaminainkge s2i%gnifsichaanllt bcoentdriisbturitbiountesdtotothethCeomcoprapnoyraatendafcocroruendtisatrsibuinticoennttoiveesmpfoloryereewsaorfdtinhge
Company.
2. Segment information
businTehsesCpoemrfopramnaynhcaes. nToheotCheormbpuasninyehsassesntohasneglimqueonrt pinrofodrumcatstiownhitchhathanveeedssigtnoifibceandt isimclpoascetdosninthcee
revenue of the Company is mainly generated within China and the assets are also located within China.
XIV. Notes to important items of parent company's financial statements
1. Other receivables
Unit: RMB
Item Endingbalance Beginningbalance
Interestreceivable 570,078,014.35 383,190,672.91
Dividendsreceivable 654,791,389.27 342,607,430.63
Other receivables 8,901,837,449.41 11,409,337,577.74
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Total 10,126,706,853.03 12,135,135,681.28
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Item Endingbalance Beginningbalance
Interest offixedtermdeposit 570,078,014.35 383,190,672.91
Total 570,078,014.35 383,190,672.91
2) Provision for bad debt
□ Applicable √ Not applicable(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item(orinvestedcompany) Endingbalance Beginningbalance
Dividendsreceivablefromsubsidiaries 654,791,389.27 342,607,430.63
Total 654,791,389.27 342,607,430.63
2) Provision for bad debt
□ Applicable √ Not applicable(3) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature ofreceivable Endingbookbalance Beginningbookbalance
Currentaccount 8,892,421,547.89 11,403,421,695.31
Deposit 10,000,000.00 5,000,000.00
Reservefund 76,201.29 70,009.94
LoanstoOrientalLOtdu.tlookMediaCo., 1,000,000.00
Total 8,902,497,749.18 11,409,491,705.25
2) Provision for bad debt
Unit: RMB
Stage1 Stage2 Stage3
Bad debtprovision Expectedcreditlossesover Expectedcreditlossforthe Expectedcreditlossforthe Total
the coming12months entireduration(nocredit entireduration(creditimpairment)impairmenthasoccurred)
Balance onJanuary1,2019 154,127.51 154,127.51
BcuarlraennctepoenrioJdanuary1,2019in -- -- -- --
Provisions incurrentperiod 506,172.26 506,172.26
2B0a1la9nceonDecember31, 660,299.77 660,299.77
L□aArgpeplibcoaobkleb√alNanocteapcphlaicnagbelein the current period of provision for loss
Disclosure by aging
Unit: RMB
Aging Bookbalance
Within1year(inclusive) 7,079,954,765.07
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
1to2years 126,607,645.67
2to3years 104,064,080.50
More than3years 1,591,871,257.94
3to4years 97,947,190.67
4to5years 101,990,963.67
More than5years 1,391,933,103.60
Total 8,902,497,749.18
3) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Amountofchangeincurrentyear
Category Beginningbalance Recoveryor EndingbalanceProvisionsreversal Write-off Others
sOinthgelerrietecmeivableswithbaddebtprovisionby
Ocrtehdeirtrriesckecivoambbleinsawtiiothnbaddebtprovisionby 154,127.51 506,172.26 660,299.77
Total 154,127.51 506,172.26 660,299.77
4) Other receivables actually written off in current period
The parent company had no other receivables actually written off in current period.5) Other receivables with top 5 ending balances by debtor
Unit: RMB
Nature BaddebtProportionintotal provision
Unit name ofreceivablEndingbalance Aging endingbalanceof
es otherreceivables bEanladnincge
Sichuan YibinWuliangyeWineryCo.,Ltd. Currentaccount6,954,534,667.27 Within1year 78.12%
Yibin JiangjiuLiquorCo.,Ltd. aCcucroreunntt1,540,284,708.85 1-5tyheaanrs5;yMeoarres 17.30%
SPricohteucatnionCYoib.,inLtd.WuliangyeEnvironmental aCcucroreunntt 212,489,316.81 2-3tyheaanrs5;yMeoarres 2.39%
YLtidb.inWuliangye Xianlin Ecological Liquor Co., aCcucroreunntt 129,206,278.05 4-5tyheaanrs5;yMeoarres 1.45%
MSiacnhuufaanctYuirbiningGCloo.b,aLltGd.elasiGlass aCcucroreunntt 25,320,627.98 Morethan5years 0.28%
Total -- 8,861,835,598.96 -- 99.54%
2. Long-term equity investment
Unit: RMB
Ending balance Beginningbalance
Item Bookbalance Profvoisrion Bookvalue Bookbalance Profvoisrion Bookvalue
impairment impairment
sInuvbessidtmiaerinetsin 9,597,846,998.20 9,597,846,998.20 9,597,846,998.20 9,597,846,998.20
Iannvdesjotminte-nvteinntuarsessociates1,011,936,626.41 1,011,936,626.41 919,477,978.54 919,477,978.54
Total 10,609,783,624.61 10,609,783,624.61 10,517,324,976.74 10,517,324,976.74
(1) Investment in subsidiaries
Unit: RMB
Invested company Beg(binonoinkgvablaulea)nceIncrease/decreaseinthecurrentperiod En(bdoinogkbvaallaunec)e baElanndcinegof
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
InInvecrsetmaseentInDveecsrtemaesentimApcrpocarviurismaioleonnftOthers pimropvaisiriomnefnotr
Sichuan YibinWuliangyeWineryCo.,Ltd. 3,375,729,567.45 3,375,729,567.45
Yibin WuliangyeLiquorSalesCo.,Ltd. 190,000,000.00 190,000,000.00
SLtidch.uanYibinWuliangyeSupplyandMarketingCo., 765,756,006.41 765,756,006.41
Yibin JiangjiuLiquorCo.,Ltd. 50,000,000.00 50,000,000.00
CSioc.h,uLatdn.YibinWuliangyeEnvironmentalProtection 18,870,000.00 18,870,000.00
Yibin ChangjiangyuanLiquorCo.,Ltd. 20,000,000.00 20,000,000.00
Yibin WuliangyeXianlinEcologicalLiquorCo.,Ltd. 2,700,000.00 2,700,000.00
Sichuan YibinWuliangyeJingmeiPrintingCo.,Ltd. 49,374,409.93 49,374,409.93
SLiimchitueadnYibinPlasticPackagingMaterialsCompany 3,443,149,609.25 3,443,149,609.25
SLtidch.uanYibinGlobalGroupShenzhouGlassCo., 108,922,175.18 108,922,175.18
CSioc.h,uLatdn.YibinGlobalGelasiGlassManufacturing 307,282,551.14 307,282,551.14
Sichuan YibinPushGroup3DCo.,Ltd. 240,419,229.32 240,419,229.32
CSioc.h,Lutadn.YibinWuliangyeInvestment(Consulting) 47,500,000.00 47,500,000.00
Yibin ZhenwushanLiquorCo.,Ltd. 20,000,000.00 20,000,000.00
Yibin ShijiLiquorCo.,Ltd. 20,000,000.00 20,000,000.00
Yibin CuipingshanLiquorCo.,Ltd. 20,000,000.00 20,000,000.00
Wuliangye Dashijie(Beijing)TradeCo.,Ltd. 323,000,000.00 323,000,000.00
Handan YongbufenliLiquorCo.,Ltd. 255,000,000.00 255,000,000.00
Huaibin WubinConsultationServiceCo.,Ltd. 199,675,708.13 199,675,708.13
Wuguchun JiuYeCo.,Henan.China 55,467,741.39 55,467,741.39
SCioc.h,uLaTnDWuliangyeCultureTourismDevelopment 40,000,000.00 40,000,000.00
Yibin WuliangyeCreartCo.,Ltd. 45,000,000.00 45,000,000.00
Total 9,597,846,998.20 9,597,846,998.20
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Investment in associates and joint-ventures
Unit: RMB
Increase/decrease inthecurrentperiod Ending
Investor Beginningbalance Additional Reduced ProinfivteasntdmleonstssonAdojfuostthmeerntChanges Declaration Accrualof Endingbalance balanceof
(Bookvalue) investment investment recognizedwith comprehen inother ofcash impairment Others (Bookvalue) provisionfor
equities dividends impairmentequitymethod siveincome orprofits provision
I. Jointventures
II.Associates
LOtrdie.ntalOutlookMediaCo., 13,742,029.36 3,336,110.30 17,078,139.66
GSircohuupanFiYnaibninceWCuoli.a,nLgtdy.e905,735,949.18 89,122,537.57 994,858,486.75
Sub-total 919,477,978.54 92,458,647.87 1,011,936,626.41
Total 919,477,978.54 92,458,647.87 1,011,936,626.41
3. Operating revenue and operating cost
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Revenue Cost Revenue Cost
Otherbusinesses 557,807.81 1,197,774.65
Total 557,807.81 1,197,774.65
W□ Yheesth√erNnoew revenue standards have been implemented4. Investment income
Unit: RMB
Item Amountincurrentperiod Amountinpreviousperiod
Lacocnogu-tnetremdebqyucitoysitnmveesthtmodentincome 11,886,940,965.04 8,495,720,769.88
Lacocnogu-tnetremdebqyueitqyuiintyvemsetmtheondtincome 92,458,647.87 100,740,183.08
Total 11,979,399,612.91 8,596,460,952.96
XV. Supplementary information
1. Statement of current non-recurring profit and loss
√ Applicable □ Not applicable Unit: RMB
Item Amount Note
Gain orlossondisposalofnon-currentassets -1,571,612.06
Gthoovseergnomveenrntamlseunbtssiudbysriedcieosr,dwedhiicnhcaurrerecnlotsperolyfitr/elolastsed(etxoctehpet
bceurstianienssstaonfdaacrdomqupoatnayoarnqdueannjtoityyeodfitnheacsctaotred)ancewitha 129,760,347.41
Fanudndreoccocrudpeadtiionncfuererecnotllpercotfeitd/lofrsosmnon-financialenterprises 15,503,633.45
aOftohreermneonnt-ioonpeedraittienmgsrevenueandexpenditureexceptforthe -135,436,782.11
Less: Impactonincometax -4,831,273.10
Impact onminorityequity 16,853,457.08
Total -3,766,597.29 --
DisclCoosunrceerfnoirngCothmepannoiens-reOcfuferrriinngg pTrhoefiitr/loSsescudrietifeinsedto bthyeQP&uAblicAn-nNouonnc-reemcuernritngNoP.ro1fito/LnosInsf,oarmndattiohne
Aitenmnosundceefimneednt aNso. r1ecounrrIinnfgormpraotfiiot/nloDssiscalocscuorredinfogr CtoomthpeanileisstsOfofef rinnognT-rheeciur rSriencgurpitrieosfitt/olosthse iPnubQli&cA-
Non-recurring Profit/Loss, explain reasons.
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
□ Applicable √ Not applicable2. Net return on equity and earnings per share
Earningspershare
Profitofthereportingperiod Weightedaveragereturnonequity Basicearningsper Dilutedearningsper
share(RMB/share) share(RMB/share)
sNheatrperhoofiltdaetrtsriboufttahbeleCotomopradninyary 25.26% 4.483 4.483
NsheatrperhoofiltdaetrtsriboufttahbeleCotomopradninyary
apfrtoefritdaenddulcotsinsgnon-recurring 25.27% 4.484 4.484
3. Differences in accounting data under domestic and foreign accounting standards
I(n1)terDniaffteiornenalcAecocfouthnetinngetStparnodfiatrdasndanndeCt haisnseestes AdcisccoluonsteindginStathnedafrindasncial report, under both
□ Applicable √ Not applicablea(2c)coDuinffteinregnscteanodfatrhdesnaentdpCrohfiinteasnedAncectoausnsteintsg dSitsacnldoasreddsin financial report, under both foreign
□ Applicable √ Not applicable
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section XIII Reference File Directory
sharReheolelvdaenrst ’ rdeefepraerntmcee:nts of the Company have prepared the following documents for
the aIc. couFnintianngcwiaolrSk,taatnedmtehnetspecorsnotanininincghsairggneaotuf rtehse oafctchoeunletginagl rinesptrietusteionntawtiivthe,stehaelsp.erson in charge of
IIIII.. OOrriiggiinnaall AcuodpiiteRs eopfotrht estadmocpuemdebnytstheanadccaonunnotiunngcfeirmmeannt dofsitghneedCaonmdpsatnaymppuebdlibsyhethdeoCnPACsh.inaSecuIrVit.iesAnJonuuranlaRl,eSphoartnogfhtahieSCeocmurpitaiensy.News, and Securities Times during the reporting period.
Wuliangye YAibpirnil C28o,.,2L0t2d0.
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