泸州老窖: 2022年年度报告(英文版)

证券之星 2023-05-19 00:00:00
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Luzhou Laojiao Co., Ltd.
        April 2023
     Section I Important Statements, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and senior management guarantee
that the information presented in this report is free of any false records, misleading statements or
material omissions, and shall individually and together be legally liable for truthfulness, accuracy and
completeness of its contents.
Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work and
Yan Li, responsible person for the Company’s financial affairs (Accounting Supervisor) have warranted
that the financial statements in this report are true, accurate and complete.
Other directors attended the board meeting to deliberate this report by themselves except the following
directors.
                                   Position of directors who
  Name of directors who did not                               Reason for not attending
                                  did not attend the meeting                                Name of deputies
  attend the meeting in person                                 the meeting in person
                                           in person
Liu Miao                          Chairman of the board      Work                      Lin Feng
Qian Xu                           Director                   Work                      Lin Feng
Ying Hanjie                       Director                   Work                      Wang Hongbo
Affected by risks, uncertainties and assumptions, the forward-looking statements concerning business
objectives and future plans made in this report based on the subjective assumptions and judgments of
the future policies and economic conditions may be significantly different from the actual results. Such
statements shall not be considered as virtual promises of the Company to investors, and the investors
and relevant persons shall maintain adequate risk awareness and shall understand the differences
between plans, forecasts and commitments.
In the annual report, the potential risks in the operation of the Company have been disclosed. Investors
are kindly reminded to pay attention to possible investment risks.
The profit distribution plan approved by the board of directors: based on the existing total share capital
of 1,471,987,769 shares, a cash dividend of CNY 42.25 (tax inclusive) will be distributed for every 10
existing shares held, 0 shares of bonus shares (tax inclusive), and reserves would not be converted into
share capital.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
                                                    Contents
                      Documents Available for Reference
responsible person for accounting work and the responsible person for the Company’s financial affairs
(Accounting Supervisor);
CPAs; and
website designated by the China Securities Regulatory Commission (CSRC) during the reporting period.
                                  Definitions
                Term           Reference                         Definition
Company, the Company, Luzhou
                               Refer to    Luzhou Laojiao Co., Ltd.
Laojiao
Laojiao Group                  Refer to    Luzhou Laojiao Group Co., Ltd.
XingLu Group                   Refer to    Luzhou XingLu Investment Group Co., Ltd.
                                           State-owned Assets Supervision and Administration
SASAC of Luzhou                Refer to
                                           Commission of Luzhou
Huaxi Securities               Refer to    Huaxi Securities Co., Ltd.
Luzhou Bank                    Refer to    Luzhou Bank Co., Ltd.
Sales Company                  Refer to    Luzhou Laojiao Sales Co., Ltd.
Brewing Company                Refer to    Luzhou Laojiao Brewing Co., Ltd.
         Section II Company Profile and Key Financial Results
Stock abbreviation      Luzhou Laojiao                   Stock code              000568
Stock exchange where
the shares of the    Shenzhen Stock Exchange
Company are listed
Name of the Company
                    泸州老窖股份有限公司
in Chinese
Abbr. of the Company
                        泸州老窖
name in Chinese
Name of the Company
                    Luzhou Laojiao Co., Ltd.
in English (if any)
Abbr. of the Company
                         LZLJ
name in English (if any)
Legal representative    Liu Miao
Registered address      Guojiao Square, Luzhou City, Sichuan Province, China
Postal code             646000
                        The Company’s registered address has changed from 46 Guihua Street,
Past changes of
                        Luzhou City, Sichuan Province, China to Guojiao Square, Luzhou City,
registered address
                        Sichuan Province, China in 2000.
                        Luzhou Laojiao Marketing Network Command Center, Nanguang Road,
Business address
                        Luzhou City, Sichuan Province, China
Postal code             646000
Company website         www.lzlj.com
E-mail                  lzlj@lzlj.com
                                                                        Representative for securities
                                         Secretary of the board
                                                                                  affairs
Name                               Li Yong                            Wang Chuan
                                   Luzhou Laojiao Marketing Network Command Center, Nanguang
Address
                                   Road, Luzhou City, Sichuan Province, China
Tel.                               (0830)2398826                      (0830)2398826
Fax                                (0830)2398864                      (0830)2398864
E-mail                             dsb@lzlj.com                       dsb@lzlj.com
Stock exchange website where this
                                         China Securities Journal, Securities Times, Securities Daily
Report is disclosed
Media and website where this Report
                                         http://www. cninfo.com.cn
is disclosed
Place where the annual report of the
                                         Board office
Company is kept
Unified social credit code             91510500204706718H
Changes in main business activities
since the Company was listed (if    None
any)
                                    Before September 2009, the controlling shareholder was the
Changes of controlling shareholders SASAC of Luzhou. After the equity transfer in September 2009,
of the Company (if any)             the controlling shareholder was changed to Laojiao Group, but the
                                    actual controller is still the SASAC of Luzhou.
Accounting firm engaged by the Company
Name of the accounting
                             Sichuan Huaxin (Group) CPA Firm
firm
Business address of the      28/F., South Jinmaolidu, NO.18 Ximianqiao Street, Chengdu City,
accounting firm              Sichuan Province.
Name of accountants for
                             Li Wulin, Tang Fangmo, and Fan Bo
writing signature
Sponsors engaged by the Company to continuously perform its supervisory function during the
reporting period
□ Applicable ? N/A
Financial adviser engaged by the Company to continuously perform its supervisory function during
the reporting period.
? Applicable ? N/A?
Whether the Company performed a retroactive adjustment to or restatement of accounting data.
? Yes ? No
 Operating revenues (CNY)         25,123,563,271.62    20,642,261,724.37          21.71%      16,652,854,549.80
 Net profits attributable to
 shareholders of the Company      10,365,383,281.80     7,955,554,351.73           30.29%      6,005,723,069.36
 (CNY)
 Net profits attributable to
 shareholders of the Company
 before non-recurring gains and
 losses (CNY)
 Net cash flows from operating
 activities (CNY)
 Basic earnings per share
 (CNY/share)
 Diluted earnings per share
 (CNY/share)
 Weighted average ROE                         33.32%               31.15%          2.17%                  28.27%
                                  At the end of 2022   At the end of 2021    YoY Change       At the end of 2020
 Total assets (CNY)               51,385,481,354.52     43,211,782,005.68         18.92%      35,009,203,823.45
 Net assets attributable to
 shareholders of the Company      34,207,871,130.03    28,040,247,005.94           22.00%     23,074,858,552.59
 (CNY)
Whether the lower of the net profits attributable to shareholders of the Company before and after non-
recurring gains and losses was negative for the last three accounting years, and the latest auditor’s
report indicated that there was uncertainty about the Company’s ability to continue as a going
concern
? Yes ? No
Whether the lower of the net profits attributable to shareholders of the Company before and after non-
recurring gains and losses was negative
? Yes ? No
accounting standards
prepared under the international and China accounting standards
? Applicable ? N/A?
No such differences for the reporting period.
prepared under the overseas and China accounting standards
? Applicable ? N/A?
No such differences for the reporting period.
                                                                                                         Unit: CNY
                                    Q1                   Q2                      Q3                    Q4
 Operating revenues            6,311,964,675.84     5,352,412,877.10        5,860,457,699.51      7,598,728,019.17
 Net profits
 attributable to
 shareholders of the
 Company
 Net profits
 attributable to
 shareholders of the
 Company before
 non-recurring gains
 and losses
 Net cash flows from
 operating activities
Whether there are any material differences between the financial indicators above or their summations
and those which have been disclosed in quarterly or semi-annual reports
? Yes ? No
? Applicable ? N/A
                                                                                                         Unit: CNY
                   Item                      2022              2021               2020                 Note
 Profit or loss from disposal of non-
 current assets (including the write-                                                          See "Section X Note
 off portion of the impairment                                                                 7.46" for details.
 provision)
 Government grants accounted for,
 in the profit or loss for the current
 period (except for the government
 grants closely related to the                                                                 See "Section X Note
 business of the Company and               34,931,161.52    51,756,953.15     31,409,825.37    7.42 and 7.47" for
 consistently given at a fixed                                                                 details.
 amount or quantity in accordance
 with the national policies or
 standards)
 Gain or loss on fair-value changes
 on held-for-trading financial assets
 and liabilities & income from
 disposal of held-for-trading
 financial assets and liabilities and                                                          See "Section X Note
                                           -2,585,156.72     6,352,241.79
 available-for-sale financial assets                                                           7.43" for details.
 (exclusive of the effective portion
 of hedges that arise in the
 Company’s ordinary course of
 business)
 Reversed portions of impairment
 allowances for receivables which
 are tested individually for
 impairment
 Other non-operating income and                                                            See "Section X Note
 expenditure except above-               7,873,927.25   -40,241,672.68   -20,289,086.46    7.47 and 7.48" for
 mentioned items                                                                           details.
 Less: Corporate income tax             14,413,895.31   24,082,098.59      4,512,028.92
       Minority interests (after tax)    1,709,085.57    2,267,697.66       -159,555.47
                 Total                  43,902,044.87   71,170,296.13     14,891,275.64             --
Other items that meet the definition of non-recurring gain/loss:
? Applicable ? N/A?
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to
the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
? Applicable ? N/A?
No such cases for the reporting period.
           Section III Management Discussion and Analysis
In 2022, the Chinese baijiu industry was under multiple pressures such as the economic downturn,
spending shrinks and fierce competition, and concentration towards the top baijiu producers was
increasingly obvious in the industry. Capacity optimisation, quality upgrade, technological innovation,
cultural development, consumer experience and service enhancement will become the key themes
for the baijiu industry in the new era of high-quality development.
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
Holding five food business licenses, the Company operates within the baijiu subdivision industry
which belongs to the liquor & wine, beverage and refined tea production industry with specialized
baijiu product design, production and sales as its main business model. The Company’s primary
products are baijiu series such as "National Cellar 1573" and "Luzhou Laojiao", and its main
comprehensive performance indicators rank high in the baijiu industry. For the reporting period,
operating revenue amounted to CNY 25.124 billion, up 21.71% year on year; and the net profit
attributable to the shareholders of the listed company reached CNY 10.365 billion, up 30.29% year on
year.
For the Company's brand operations, please refer to "4.1 Overview" under “4. Analysis of main
business” in this section. The Company’s main products are classified as follows:
        Main product types                 Classification criteria           Representative brand name
                                                                          National Cellar 1573, Luzhou
                                   Tax-inclusive sales price ≥ CNY
Mid- and high-end baijiu                                                  Laojiao Tequ, and Century-old
                                                                          Luzhou Laojiao Jiaoling Baijiu
                                   Tax-inclusive sales price < CNY        Luzhou Laojiao Touqu and Luzhou
Other baijiu
Main sales models:
Currently, the Company has two main sales models:
Company establishes cooperative relationships with the distributors by product lines and regions. The
Company directly supplies goods to the distributors, and then distributors sell them to consumers and
terminal outlets.
cooperative relationships with e-commerce platforms, self-media and webcasters, and sells the goods
to consumers through flagship stores, specialty stores, live streaming rooms on online platforms and
other network terminals.
Distribution models:
? Applicable □N/A
                                                                                                   Unit: CNY
                                                                    Gross YoY change of                YoY change of
                                                                                        YoY change of
                      Operating revenue         Cost of sales       profit  operating                   gross profit
                                                                                         cost of sales
                                                                    margin   revenue                      margin
By sales model
Traditional channel
operation model
Emerging channel
operation model
Note: Operating revenue and cost of sales of the emerging channel operation model increased 64.17% and 41.65%
respectively year on year. It was mainly due to the increased revenue and cost on e-commerce platforms.
                               Increased
               Number of                       Decreased
                                 number                         YoY change of
             distributors at                 number during
  Region                       during the                          number of         Reason for any significant change
             the end of the                   the reporting
                                reporting                       distributors (%)
            reporting period                     period
                                  period
Domestic               1703             47             127                  -4.49
Overseas                126             20               42                -14.86
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
The Company had no accounts receivable from the top five distributors at the end of the period. For
details, please refer to Section III 4.2.8. "Main customers and suppliers".
Store sales terminals accounted for more than 10%
□ Applicable ? N/A
Online direct sales
? Applicable □N/A
For the sales of the Company's main products, please refer to Section III 4.2.1. "Breakdown of
operating revenues". The Company's complete series of products are sold online. Its main cooperation
platforms included JD.com and Tmall.
Sales price of main products contributing over 10% of the total operating revenues for the current
period changed by more than 30% from the previous reporting period
□ Applicable ? N/A
Purchase model and purchase content
                                                                                                              Unit: CNY
           Purchase model                            Purchase content                 Amount of main purchase content
 Organic raw grains are purchased
 through cooperative model and
                                            Raw materials                                              4,528,482,786.16
 supplied by organic raw grain bases;
 other raw grains and packaging
 materials are purchased through bid
 invitation
 Purchase based on the unified
 pricing of the National Development
 and Reform Commission and the           Fuels and energies                                                   163,075,514.73
 price bureau, and purchase through
 bid invitation
 Purchase through bid invitation         Low-value consumables                                                  55,904,099.15
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the total
purchase amount
□ Applicable ? N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable ? N/A
Main production model:
The Company's main production model is self-production.
Commissioned processing and production
□ Applicable ? N/A
Main breakdown items of cost of sales
                                                                                                                   Unit: CNY
  By business
                       Item                          As % of cost of                        As % of cost of     YoY Change
   segment                              Amount                               Amount
                                                         sales                                  sales
Baijiu            Raw materials   2,757,973,459.70             85.80% 2,502,121,435.16              86.71%             10.23%
Baijiu            Labor costs       208,363,976.36              6.48% 160,836,008.91                 5.57%             29.55%
                  Manufacturing
Baijiu                              247,916,280.85              7.71% 222,727,707.56                 7.72%             11.31%
                  overhead
Production volume and inventory
                                                             YoY change YoY change
                  Production
    Product                  Sales volume     Inventory      of production of sales YoY change                Description of
                   volume
 classification                  (ton)          (ton)           volume     volume   of inventory              major changes
                     (ton)
                                                                  (%)        (%)
Mid- and high-
end baijiu
Other baijiu        47,078.68     49,058.69      11,695.49          2.00             6.52         -14.48
                                                                                                                    Unit: Ton
                      Finished baijiu                                  Semi-finished baijiu (including base baijiu)
                                                                                                   Unit: Ton
    Main products           Design capacity             Actual capacity            Capacity in progress
        Baijiu                            170,000                     170,000                        80,000
A. Geographical advantage
Luzhou City, where the Company is located, sits in the transitional area between the southern rim of the
Sichuan Basin and the Yunnan-Guizhou Plateau, featuring a warmer and more humid sub-tropical
climate compared to other areas at the same latitude, with a temperature above 0℃ throughout the
year. The unique climate and soil are agreeable to grow grains for baijiu brewing. The glutinous red
sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.
The cellars in which the Company brews its baijiu are made of the local loessal clay characterized by
strong viscosity, rich minerals and excellent moisture retention. In addition, the abundant and quality
water in the region creates a unique geographical advantage for the production of the Company’s baijiu.
B. Advantage of cellars and brewing technique
Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality
baijiu. The Cellars of National Treasure 1573, founded in 1573, was granted by the State Council as the
first Cultural Relic of National Importance in the industry under the Protection of the State in December
with its 16 ancient brewing workshops and three natural cellar holes, were all selected as the fourth
batch of Cultural Relics of National Importance under the Protection of the State in 2013. They are
unique resources that cannot be replicated. In both 2006 and 2012, Luzhou Laojiao Daqu Cellars were
twice selected into the preliminary list of China for World Heritage. In November 2018, Luzhou Laojiao
Cellars and Brewing Workshops were selected into China’s Industrial Heritage List. The time-honored
Traditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewing
technique for strong aromatic baijiu. This technique was selected as the first batch of National
Intangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the Traditional
Brewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for the
quality of the product series of National Cellar 1573 and Luzhou Laojiao. Additionally, Huangyi Brewery
Eco-Park has moved into full production in late 2020. Upholding the cultural connotations of
“inheritance of ancient ways, pure-grain brewing, traditional techniques, and intelligent technologies”,
the Company carried out brewing technical renovation featuring automatic, intelligent and information
technology-based transformation. As such, it has established a baijiu brewery eco-park comprising
brewing workshops, leaven making workshops, and base baijiu storage cellars, along with energy and
sewage treatment facilities. This brewery eco-park brings with it new production capacities of 100,000
tons of quality pure-grain solid baijiu and 100,000 tons of leaven in addition to a new storage capacity of
C. Brand advantage
Brand is a key business resource for baijiu producers. The Company’s reputation is greatly built on its
superiority in brand. National Cellar 1573, which is of a connoisseurship level, is a world-famous high-
end brand. Luzhou Laojiao Tequ, a classic brand for strong aromatic baijiu, was selected in 1952 by the
first national tasting competition judges as one of the four most famous baijiu brands in China. It is the
only strong aromatic baijiu brand that won the title of “National Famous Liquor” for five consecutive
times, as well as the pioneer with regard to the “Tequ” variety of baijiu. In recent years, the Company
has successfully put in place a brand system of “dual brands, three product series, and major single
products” with great clarity and focus. The programs carried out to promote the brand of National Cellar
improvement in brand influence. The Company’s baijiu is increasingly known by consumers as a
national brand of strong aromatic baijiu and of authentic flavor.
D. Quality and R&D advantage
The Company is committed to producing high-quality baijiu, advocating a healthy lifestyle and “making
the quality visible”. The first “Organic Sorghum Planting Base” was established and the six-factor
management system (including organic, quality, safety, environment, measurement and energy) was
built and improved. The research platforms are established, including National Engineering Research
Center of Solid-State Brewing, National Liquor Test Center, National Postdoctoral Workstation, etc,
which all support the innovation and upgrading of products with their strong technical force. In recent
years, the Company has put in a lot of efforts in researching Tequ production, brewing informatization &
automation. Relying on the technological innovation platforms such as the National Industrial Design
Center, and continuously deepening the cooperation with universities and scientific research institutes
including the Chinese Academy of Sciences and the Jiangnan University, the Company has undertaken
dozens of national- or provincial-level projects and has been granted hundreds of invention or utility
model patents. And remarkable results have been achieved with respect to improvement of the quality
of base Baijiu, as well as production efficiency improvement.
E. Talent advantage
The Company has 1 inheritor of national intangible cultural heritage, 4 masters of Chinese brewing, 2
masters of Chinese baijiu, 2 Chinese liquor connoisseurs, 1 master of Chinese baijiu technique, 11
senior professor engineers, 7 experts who receive special allowances from the State Council, 4 national
technicians, 2 national model workers, 5 national Labor Day Medal winners, 3 academic and
technologic leaders of Sichuan province, 1 expert with outstanding contribution in Sichuan province, 1
innovation leader of Tianfu, 1 excellent engineer of Tianfu, 3 craftsmen of Tianfu, 2 craftsmen of
Sichuan province, 1 technological elite of Tianfu, 4 technicians of Sichuan province, as well as
hundreds of highly skilled personnel including national baijiu judges, senior brewing technicians and
brewing technicians. The comprehensive and professional personnel system assures the sound
development of the Company.
In 2022, the Company forged ahead against headwinds and maintained a healthy and rapid
development momentum, establishing a growing pace. For the reporting period, operating revenue
amounted to CNY 25.124 billion, up 21.71% year on year; and the net profit attributable to the
shareholders of the listed company reached CNY 10.365 billion, up 30.29% year on year. The
Company’s main operations and the results in the reporting period are summarized as follows:
A. Continued stable growth in sales
Strategies were effectively implemented. Empowered by new marketing models and new methods,
the system of resource integration plays a powerful driving force. The performance of main single
products was outstanding. National Cellar 1573 maintained its leadership, and Luzhou Laojiao's
brand rejuvenation sped up, with a deep layout of multiple product series and young orientation, and
the formation of new growth poles accelerated. Continuous efforts were made for the core area.
The Company further consolidated the base market, made a breakthrough in the highland market and
expanded the opportunity market, resulting in continuous growth in scale by province, city and
number of customers.
B. A variety of branding highlights
The brand matrix was continuously improved. Adhering to the strategy of "dual brands, three
product series, and major single products", the Company continued to promote the brand
rejuvenation plan, and comprehensively enhanced its market influence. Branding activities were
vigorously carried out. The Company deeply integrated its brand in top international events such as
the Australian Open and the World Cup, conducted cross-border cooperation with the food, art and
fashion industries, and achieved precise circle communication and brand promotion. A stronger
brand presence was achieved. In 2022, Luzhou Laojiao became the only Chinese company in the
baijiu industry to have two brands listed in the 2022 Kantar BrandZ Top 100 Most Valuable Chinese
Brands, and was awarded the third place in the list of 2022 Global Top 50 Most Valuable Spirits
Brands.
C. Solid capacity guarantee
The capacity guarantee achieved a higher level. The Company has created a high-quality organic
raw grain planting base, further optimized the digital business system of the brewery eco-parks and
improved the utilization of brewing resources and production efficiency. The product guarantee was
solid and strong. The completion rate of production guarantee, guarantee rate of package materials,
warehousing and logistics efficiency and management system coverage continued to improve, and
Luzhou Laojiao's supply chain system showed a new look. The quality assurance continued to be
consolidated. The Company continuously carried out external audits of quality, food safety and
organic systems, with a 100% pass rate. It participated in drafting and revising nine national
standards, and released a white paper on quality and safety to the community for six consecutive
years. Luzhou Laojiao was awarded six national quality awards, including "National Food Safety
Integrity Demonstration Unit", "National Excellent Case of Food Safety Management Innovation" and
"National Quality and Integrity Benchmark Enterprise".
D. Leading technological innovation
A historic breakthrough was made in major science and technology awards. The Company won
the First Prize of Science & Technology Progress of People's Government of Sichuan Province, the
First Prize of Sichuan Patent Award, and the First Prize of Science & Technology Progress Award of
China Food Industry Association and China National Light Industry Council. Remarkable working
results were achieved in terms of intellectual property. The Company passed the review of
national intellectual property demonstration enterprises and the certification of intellectual property
management system. In addition, it applied for 113 patents, authorized 73 patents and published 31
papers. Collaborative technology innovation was effectively promoted. The Company deepened
the industry-university-research cooperation, made multiple major technological breakthroughs such
as "intelligent brewing" and "low-carbon brewing", with many achievements reaching international
leading levels.
E. Strong support from the talent team
Talent was introduced through multiple channels. Mature and reserve talent was introduced
through campus recruitment and social recruitment. Talent was trained from multiple dimensions.
The Company continued to build a knowledge management platform, and enhanced the development
of a training system, course system and teacher system. It was selected as one of the first batch of
key enterprises to promote the "industry reform" special action in the national light industry. Talent
was selected and appointed by multiple initiatives. The mechanism of open post competition for
middle-level management and department managers of subsidiaries was implemented
comprehensively, and the Luzhou Laojiao assessment officer system was formally implemented to
make the selection and appointment of talent more scientific. In 2022, the Company was awarded
"National Model Enterprise of Harmonious Labor Relations" and "Advanced Unit of Talent Work in
Luzhou City". Mr. Liu Miao, Secretary of the Party Committee and Chairman of the Board of the
Company, was awarded the "Baijiu Town Talent - Special Honor Award" in Luzhou City. Yangping
Brewery Workshop was awarded the "Craftsman Innovation Workshop in the National Light Industry".
F. Prominent cultural leadership
The cultural connotations continued to deepen. The "70th Anniversary of Famous Baijiu"
exhibition toured China, and books and courses on corporate culture were published and upgraded.
The cultural cohesion continued to heighten. The corporate culture knowledge competition of
"Strong Flavor Cultural Brewery Cup" was successfully concluded, and the Luzhou Laojiao culture
shaping think tank platform, including the National Cellar 1573 Institute, was successfully built. The
cultural communication covered the whole jurisdiction. New media communication and operation
were optimized, and a matrix communication platform was built. The cultural experience was
innovated and upgraded. The immersive cultural experience was upgraded, the upgrade of the old
museum was completed and the cultural experience services of Luzhou Laojiao continued to climb.
G. Continuous improvement in headquarters capacity
Internal controls were constantly optimized. By continuously improving the management system
and sorting out the procedure system, the Company's ability of risk prevention continued to improve.
The management innovation was efficiently empowered. The Company was selected as one of
the first batch of the province and the third batch of the national list of pilot units for electronic VAT
invoices, as well as one of the first batch of the national pilot units for the construction of digital
archives for enterprise groups, ranking among the first camp of national corporate archive
management. The safety and environmental protection continued to be consolidated. The
Company had zero production safety accidents and zero incidence of occupational diseases
throughout the year, and was awarded as a "tier-one enterprise with standard safety production" and
a "provincial healthy enterprise". For three consecutive years, the Company was awarded as a
provincial "environmental integrity enterprise of corporate environmental credit evaluation". Social
welfare was continuously advanced. The Company supported rural revitalization in paired
assistance regions and was awarded the "Advanced Collective for Paired Assistance" in Sichuan
Province. It continued to carry out public welfare projects such as the "Pillars Project" and the
"Luzhou Laojiao Teacher's Pointer" to support the development of local education.
                                                                                                         Unit:CNY
                                                  As % of                               As % of        YoY Change
                           Amount                operating          Amount             operating
                                                 revenues                              revenues
 Total                25,123,563,271.62                 100%   20,642,261,724.37            100%              21.71%
 By business segment
 Baijiu               24,766,121,998.49               98.58%   20,415,170,469.09           98.90%             21.31%
 Other revenues          357,441,273.13                1.42%      227,091,255.28            1.10%             57.40%
 By product
 Mid- and high-
 end baijiu
 Other baijiu          2,633,575,939.85               10.48%    2,017,810,309.10            9.78%             30.52%
 Other revenues          357,441,273.13                1.42%      227,091,255.28            1.10%             57.40%
 By geographical segment
 Domestic             24,970,484,945.58               99.39%   20,558,860,984.10           99.60%             21.46%
 Overseas                153,078,326.04                0.61%       83,400,740.27            0.40%             83.55%
 By sales model
 Traditional
 channel              23,302,396,093.43               92.75%   19,523,560,616.72           94.58%             19.36%
 operation model
 Emerging
 channel               1,463,725,905.06                5.83%      891,609,852.37            4.32%             64.17%
 operation model
 Other revenues          357,441,273.13                1.42%      227,091,255.28            1.10%             57.40%
contributing over 10% of the operating revenues or profits
? Applicable ? N/A
                                                                                                         Unit:CNY
                                                               Gross    YoY change      YoY change      YoY change
                   Operating revenue          Cost of sales    profit   of operating     of cost of    of gross profit
                                                               margin     revenue          sales           margin
 By business segment
 Baijiu            24,766,121,998.49      3,214,253,716.91     87.02%        21.31%           11.39%           1.16%
 By product
 Mid- and high-
 end baijiu
 Other baijiu       2,633,575,939.85      1,233,209,009.43     53.17%        30.52%           11.31%           8.08%
 By geographical segment
 Domestic          24,970,484,945.58      3,349,598,518.23     86.59%        21.46%          13.94%            0.89%
 By sales model
 Traditional
 channel
 operation
 model
Under the circumstances that the statistical standards for the Company’s main business data were
adjusted in the reporting period, the Company’s main business data in the current year is calculated
based on adjusted statistical standards at the end of the reporting period
? Applicable ? N/A
services
? Yes ? No
   By business
                         Item                Unit                2022                 2021             YoY Change
    segment
                   Sales volume              Ton                 86,182.65                77,820.50         10.75%
                   Production
 Baijiu                                      Ton                 87,902.60                94,818.24          -7.29%
                   volume
                   Inventory                 Ton                 54,572.50                52,852.55          3.25%
Reason for any over 30% YoY movements in the data above
? Applicable ? N/A
? Applicable ? N/A
By business segment
                                                                                                         Unit:CNY
  By business                                         As % of                                As % of
                     Item                                                                               YoY Change
   segment                            Amount          cost of             Amount             cost of
                                                       sales                                  sales
 Baijiu          Raw materials    2,757,973,459.70      85.80%      2,502,121,435.16          86.71%        10.23%
 Baijiu          Labor costs        208,363,976.36       6.48%        160,836,008.91           5.57%        29.55%
                 Manufacturing
 Baijiu                            247,916,280.85       7.71%           222,727,707.56         7.72%        11.31%
                 overhead
reporting period
? Yes ? No
Subsidiaries that are newly incorporated into the scope of consolidation in this period
                     Name of subsidiary                                          Reason
   Luzhou Laojiao International Trade (Hainan) Co., Ltd.           Incorporated through investment
     Luzhou Laojiao Technology Innovation Co., Ltd.                Incorporated through investment
Liquidation and cancellation for subsidiaries in this period
                           Name of subsidiary                                                 Reason
      Luzhou Laojiao Bosheng Hengxiang Liquor Sales Co., Ltd.                       Liquidation and cancellation
               Luzhou Laojiao Tourism Culture Co., Ltd.                             Liquidation and cancellation
? Applicable ? N/A
Sales to main customers of the Company
 Total sales to top five customers(CNY)                                              16,855,963,269.03
 Total sales to top five customers as % of the total
 sales
 Total sales to related parties among top five
 customers as % of the total sales
Information on top five customers
                                                                                 As % of the total sales
           No.                      Customer           Sales amount (CNY)
                                                                                     for the year
          Total                         --               16,855,963,269.03                        67.09%
Other information on main customers
? Applicable ? N/A
Main suppliers of the Company
 Total purchases from top five suppliers(CNY)                                          1,893,157,453.08
 Total purchases from top five suppliers as % of
 the total purchases
 Total purchases from related parties among top
 five suppliers as % of the total purchases
Information on top five suppliers
                                                                                   As % of the total
           No.                       Supplier           Purchases (CNY)
                                                                                purchases for the year
          Total                         --                1,893,157,453.08                        39.88%
Other information on main suppliers
? Applicable ? N/A
                                                                                               Unit:CNY
                                                                                                     Reason for any
                                                                                                    significant change
 Selling and
 distribution expenses
 General and
 administrative               1,162,422,257.23        1,056,116,367.85                   10.07%
 expenses
                                                                                                   Mainly due to the
                                                                                                   increased interest
 Finance expenses              -286,376,927.48         -216,885,999.21
                                                                                                   income in the current
                                                                                                   period
                                                                                                   Mainly due to the
                                                                                                   increased R&D
 R&D expenses                  206,248,486.57           137,712,329.78                   49.77%
                                                                                                   projects in the
                                                                                                   current period
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
                                                                                                           Unit:CNY
Selling and distribution
       expenses
Advertising expenses       1,880,179,769.91 1,769,053,962.56                 6.28%
                                                                                   Mainly due to the decreased sales
Sales promotion
expenses
                                                                                   period
Employee benefits           355,699,286.88       357,659,249.63             -0.55%
                                                                                   Mainly due to the increased sales
Warehousing and                                                                    revenue from baijiu, leading to a
logistics expenses                                                                 corresponding increase in
                                                                                   warehousing and logistics expenses
                                                                                   Mainly due to the increased share-
Other                       361,660,868.33       233,165,488.47             55.11% based payments apportioned in the
                                                                                   current period
                                                                                                            Unit:CNY
                                       Advertising                                                 Expenses
Online advertising (exclusive of TV advertising)                                                        366,297,010.23
Offline advertising                                                                                     459,949,306.81
TV advertising                                                                                          601,235,194.18
Other (inclusive of branding ideas, exhibitions & showcases, advertising materials,
activity planning, etc.)
? Applicable ? N/A
  Major R&D                                                                                          Expected impact
                         Purpose                      Progress               Specific objectives
   projects                                                                                          on the Company
                                             Taking brewing waste as
                                             the research target and the     To develop an
                                             energy- and resource-           intelligent
                                             based research and              equipment system
                 The project is a            development of                  with packaged
                 national key R&D            thermochemical treatment        technology for the
                 program during the          as the technical                resource- and
                 "13th Five-year Plan"       breakthrough, the project       energy-based
                 period undertaken by        develops and completes          utilization of
                                                                                                     Realize a large-
                 the Company, which          one pilot line for drying and   brewing waste,
Thermochemical                                                                                       scale resource-
                 aims to realize the         pyrolysis of distiller's        successfully build a
Energy- and                                                                                          and energy-based
                 energy- and resource-       grains, and realizes the        demonstration base
Resource-based                                                                                       utilization of
                 based utilization of        processing capacity of five     for the project
Coupled                                                                                              brewing waste
                 brewing waste with          tons/day for drying and         industrialization,
Utilization                                                                                          and achieve both
                 thermochemical              pyrolysis of distiller's        and achieve more
Technology of                                                                                        ecological and
                 technology, and             grains. Currently, the          than 90% of
Brewing Waste                                                                                        economic
                 develop a complete set      Company plans to build an       resource- and
                                                                                                     benefits.
                 of intelligent equipment    industrial demonstration        energy-based
                 systems for the             line with a processing          utilization of
                 resource- and energy-       capacity of 100,000             brewing waste to
                 based utilization of        tons/year, making a             ensure the low-
                 brewing waste.              systematic breakthrough in      carbon, green
                                             the resource-based              development of the
                                             utilization technology of       Chinese baijiu
                                             brewing waste and               industry.
                                             industrialization in China.
                                                                             To develop
                 The project is an           A study on the diversity of     functional leaven
                 international project       microorganisms in the           according to
Study on the     that the Company            incised notopterygium has       different quality
Expression       jointly undertook, which    been carried out. Multiple      indicator
Regulation of    studies the evolution       omics analyses including        requirements based
                                                                                                     Improve the
Key Genes in     pattern and formation       macro-genomic and               on functional
                                                                                                     leaven and baijiu
Leaven           mechanism of                metabolomic analysis of         leaven-marking
                                                                                                     quality and
Microorganisms   microbiomes during the      strong-flavor baijiu were       microorganisms and
                                                                                                     enhance the
in China and     natural leaven-marking      completed. Functional           key gene
                                                                                                     Company's core
Japan and the    and fermentation, and       enhanced leaven was             expression
                                                                                                     competitiveness.
Improvement of   screens for microbial       developed, and corporate        regulation,
Chinese Leaven   strains with specific       standards for finished          systematically
Quality          functions for the           strong-flavor baijiu and        evaluate the
                 production of functional    other products were             efficacy of leaven
                 enhanced leaven.            formulated.                     and optimize the
                                                                             process.
                 The project is to           The Company has                 To pass the
                 implement national          strengthened the close          "certification of       Improve the
                 standards for               integration of intellectual     intellectual property   Company's
                 intellectual property       property creation and           management              intellectual
High-value
                 management, and             protection with the whole       standard" and           property offensive
Patent
                 achieve efficient           process of technological        enhance the             and defensive
Incubation
                 management of the           innovation, enhanced the        awareness of            capabilities, and
Center Project
                 Company in the              creation of intellectual        intellectual property   become a model
of Luzhou
                 creation, application       property at key processes,      creation and            and leader in
Laojiao
                 and protection of           and formed a series of          protection of all       terms of
                 intellectual property. An   high-value patent               staff. To strengthen    intellectual
                 all-round layout of         achievements. Its invention     the exploration of      property work.
                 intellectual property is    patents won the first prize     high-value patents
                    made around the core        of Sichuan Patent Award.       and strengthen the
                    key technologies of the     The certification of           operation and
                    industrial chain to         enterprise intellectual        protection of high-
                    promote the creation of     property management            value patents.
                    high-quality patents        standard has been
                    and build a patent pool     conducted, an intellectual
                    for core technologies.      property management
                                                system has been
                                                established and improved,
                                                and a number of normative
                                                documents have been
                                                formulated and operated
                                                effectively. The Company
                                                has successively passed
                                                the review of national
                                                intellectual property
                                                demonstration enterprises
                                                and the certification of
                                                intellectual property
                                                management standard.
                                                The Company has
                                                developed and improved
                                                the policy system for the
                                                Innovation Center,
                    The Company took the        perfected the infrastructure
                                                                               To create an
                    lead to jointly build the   of the Innovation Center,
                                                                               innovation alliance
                    Sichuan Innovation          and continued to carry out
                                                                               in the solid-sate     Successfully build
                    Center for Solid-state      solid-sate brewing
                                                                               brewing sector,       a technological
                    Brewing Technologies        technology research,
                                                                               make                  innovation
Establishment of    with several universities   industry exchanges, result
                                                                               breakthroughs in      platform, thereby
Sichuan             and institutes, aiming to   transformation and talent
                                                                               core key              improving the
Innovation          overcome a batch of         training. Innovative
                                                                               technologies in the   Company's
Center for Solid-   core technological          resources in the solid-sate
                                                                               solid-sate brewing    scientific and
state Brewing       challenges in solid-        brewing sector were
                                                                               sector, and form a    technological
Technologies        state brewing and           gathered to form a "Solid-
                                                                               science and           innovation
                    resolve the major           state Brewing Technology
                                                                               technology            capabilities and
                    problem of "large scale     Innovation Alliance in the
                                                                               innovation center     level.
                    but weak capacity"          Chengdu-Chongqing Twin
                                                                               with national
                    faced by the solid-state    City Economic Circle".
                                                                               influence.
                    brewing sector.             More than 50 member
                                                enterprises have been
                                                absorbed and a meeting of
                                                the Alliance Council is in
                                                preparation.
                    By applying modern          The Company carries out
                    technologies such as        industry-university-
                    intelligent sensing,        research cooperation with
                    image recognition,          universities and research                            Level up the
A Study on the
                    spectral technology and     institutes in the field of                           Company's
Optimization of
                    bio-chips, the project      intelligent brewing, deeply    To build an           intelligent brewing
Key Intelligent
                    aims to develop core        analyzes traditional           intelligent brewing   and promote the
Equipment and
                    technologies for each       production processes and       demonstration         transformation
the System
                    link of brewing             fermentation principles,       production line.      and upgrading of
Control for
                    production, including       innovatively applies                                 the traditional
Brewing
                    fermentation, vinasse-      simulation technology,                               brewing industry.
                    based ingredient            automation technology,
                    making, distillation of     online testing, industrial
                    grains in retorts and       robots, big data analysis,
                   baijiu selection, and       intelligent decision-making
                   build intelligent brewing   and other technologies to
                   production lines with       the brewing engineering
                   independent                 renovation project of
                   optimization, production    Luzhou Laojiao, breaks
                   decision-making and         through the key bottleneck
                   execution capabilities      of intelligent brewing
                   to comprehensively          technology, and forms the
                   upgrade the solid-state     first intelligent baijiu
                   brewing technologies in     brewing demonstration
                   the baijiu industry.        solution for the whole
                                               brewing process in the
                                               industry. The project
                                               results were appraised by
                                               an expert committee with
                                               Academician Sun Baoguo
                                               as the chairman as
                                               "international leading level"
                                               and won the First Prize of
                                               Technology Progress
                                               Award.
                                               The Company carries out
                                               industry-university-
                                               research cooperation with
                                               universities, and has
                   The project aims to
                                               screened and obtained a
                   carry out collection of
                                               series of new species and
                   brewing microbial
                                               key functional
                   resources, rapid
                                               microorganisms in the pit       To establish a
                   isolation,
                                               mud based on the analysis       brewing microbial
                   authentication, review                                                              Master the core
                                               of the metabolic basics of      strain bank of a
                   and transfer of                                                                     resources of baijiu
                                               the microbial flora of the      certain scale, which
                   microbial resources in                                                              brewing
 Construction of                               400-year-old national           can achieve long-
                   the brewing process of                                                              microorganisms
 the Brewing                                   treasure fermentation pit,      term safe
                   baijiu and development                                                              and enhance the
 Microbial                                     analyzed their brewing          preservation of
                   of excellent strains for                                                            Company's ability
 Resources and                                 performance and applied         strains and is
                   industrial use, establish                                                           to protect and
 Data Platform                                 them to brewing                 supplemented by
                   a brewing microbial                                                                 utilize brewing
                                               production, which has           special information
                   strain library and                                                                  microbial
                                               strongly improved the           technology to
                   related enzymology                                                                  resources.
                                               sensory quality and quality     manage strain
                   library, and promote the
                                               of the base baijiu. The         information.
                   protection, sharing and
                                               relevant achievements
                   sustainable utilization
                                               have won the First Prize of
                   of brewing microbial
                   resources.
                                               Award and the First Prize
                                               of Science & Technology
                                               Progress Award of China
                                               Food Industry Association.
Information about R&D personnel
 Number of R&D
 personnel
 R&D personnel as % of
 total employees
 Educational backgrounds of R&D personnel
 Bachelor’s degree                            320                       326                      -1.84%
 Master’s degree                              133                       120                      10.83%
 Doctoral degree
 (including postdoctoral                       27                        23                      17.39%
 workstations)
 Age structure of R&D personnel
 Below 30                                     218                       220                      -0.91%
Information about R&D investments
 R&D investments
 (CNY)
 R&D investments as %
 of operating revenues
 Capitalized R&D
 investments (CNY)
 Capitalized R&D
 investments as % of                       0.00%                     0.00%                        0.00%
 total R&D investments
Reason for any significant change in the composition of R&D personnel and the impact
? Applicable ? N/A
Reason for any significant YoY change in the percentage of the R&D investments in the operating
revenues
? Applicable ? N/A
Reason for any sharp variation in the percentage of the capitalized R&D investments and rationale
? Applicable ? N/A
                                                                                            Unit:CNY
            Item                    2022                     2021                    YoY Change
 Subtotal of cash
 inflows from operating        26,877,272,861.82         23,520,677,136.09                       14.27%
 activities
 Subtotal of cash
 outflows from operating       18,614,624,592.10         15,822,029,031.58                       17.65%
 activities
 Net cash flows from
 operating activities
 Subtotal of cash
 inflows from investing         2,243,596,415.18             41,893,415.77                   5,255.49%
 activities
 Subtotal of cash               4,117,450,731.91          2,719,942,312.51                       51.38%
 outflows from investing
 activities
 Net cash flows from
                                        -1,873,854,316.73              -2,678,048,896.74
 investing activities
 Subtotal of cash
 inflows from financing                 5,372,133,945.09                      8,305,794.84                  64,579.35%
 activities
 Subtotal of cash
 outflows from financing                7,450,522,397.49                3,190,924,317.15                       133.49%
 activities
 Net cash flows from
                                        -2,078,388,452.40              -3,182,618,522.31
 financing activities
 Net increase in cash
 and cash equivalents
Explanation of why the data above varied significantly
? Applicable ? N/A
Net cash flows from investing activities increased by CNY 804,194,580.01 year-on-year, mainly due
to the decreased cash paid to acquire and construct fixed assets, intangible assets and other long-
term assets in the current period.
Net cash flows from financing activities increased by CNY 1,104,230,069.91 year-on-year, mainly due
to the receipt of bank loan in the current period.
Explanation of main reasons leading to the material difference between net cash flows from operating
activities during the reporting period and net profit for the year
? Applicable ? N/A
? Applicable ? N/A
                                                                                                               Unit:CNY
                         At the end of 2022                 At the beginning of 2022                        Reason for any
                                                                                             Change in
                                        As % of total                        As % of total                    significant
                       Amount                               Amount                           percentage
                                           assets                                assets                        change
 Cash and cash
 equivalents        17,757,528,211.25         34.56%    13,513,494,580.56          31.27%           3.29%
 Accounts
 receivable             5,939,420.78           0.01%         1,628,248.55           0.00%           0.01%
 Inventories        9,840,742,374.85          19.15%     7,277,573,166.80          16.84%           2.31%
 Investment
 property
 Long-term equity
 investments        2,667,500,553.17           5.19%     2,626,744,236.25           6.08%          -0.89%
 Fixed assets       8,856,258,598.78          17.23%     8,089,487,274.39          18.72%          -1.49%
 Construction in
 progress                    808,919,047.21              1.57%      1,259,845,487.50              2.92%           -1.35%
 Right-of-use
 assets                         39,952,525.63            0.08%         52,714,810.04              0.12%           -0.04%
 Contract
 liabilities               2,566,374,718.76              4.99%      3,510,110,701.25              8.12%           -3.13%
                                                                                                                             Mainly due to the
                                                                                                                             receipt of bank
 Long-term loans           3,179,600,000.00              6.19%                                                     6.19%
                                                                                                                             loan in the
                                                                                                                             current period
 Lease liabilities              29,096,969.66            0.06%         40,667,668.08              0.09%           -0.03%
Whether overseas assets account for a larger proportion in total assets
? Applicable ? N/A
? Applicable □ N/A
                                                                                                                                  Unit:CNY
                                                      Changes in
                                    Changes in
                                                      cumulative
                      Opening        fair value                     Provision for   Amount of        Amount of      Other           Closing
     Item                                              fair value
                      balance         through                       impairment      purchase           sale        changes          balance
                                                       recorded
                                    profit or loss
                                                      into equity
 Financial asset
 trading
 financial                                        -
 assets          706,352,241                                                        2,500,000,0     2,120,861,8                   1,073,466,7
 (exclusive of                       12,023,622.
                         .79                                                              00.00           38.92                            80.37
 derivative                                     50
 financial
 assets)
 ts in other     363,312,120        231,164,476       489,371,388                   542,285,380                                   1,136,736,9
 equity                                                                                               25,000.00
                         .43                    .88           .31                           .80                                            78.11
 instruments
 receivables                                                                                                      174,279,275
 financing                78.64                                                                                                            03.37
                                                                                                                           .27
 Subtotal of                                                                                                                 -
 financial                                                                                                        174,279,275
 assets                   40.86                 .38           .31                         80.80           38.92                            61.85
                                                                                                                           .27
 Investment                                                                                                       39,149,454.     39,149,454.
 property                                                                                                                  22                  22
 Total                                                                                                            135,129,821
                                                                                                                           .05
 Financial
 liability                 0.00                                                                                                             0.00
Whether measurement attribution of main assets changes significantly in this year
?Yes ? No
           Item              Closing balance                             Reason
Other cash and cash
equivalents (CNY)
Bank deposits (CNY)               17,339,936.14            Accrued interest on term deposits
Bank deposits (CNY)                 1,181,683.24                  Frozen by court of law
          Total                   28,521,619.38
Note 1: According to the civil ruling issued by People's Court of Jiangyang District, Luzhou City,
Sichuan Province, a total of CNY 516,806.00 bank deposits of Brewing Company, a subsidiary of the
Company, were frozen in accordance with laws for the case of contractual dispute. The first trial of
the relevant case has been decided on 12 January 2023, based on which Brewing Company was not
required to pay the relevant liabilities.
Note 2: According to the civil ruling issued by People's Court of Dongchangfu District, Liaocheng City,
Shandong Province, a total of CNY 664,877.24 bank deposits of Boda Marketing Company, a
subsidiary of the Company, were frozen in accordance with laws for the case of contractual dispute.
As of 31 December 2022, the case was not decided. Based on the explanation issued by the third-
party law firm, it was predicted that the probability of the rejection of the claims of the plaintiff by
People's Court was over 60%.
? Applicable ? N/A
      Investment made in the        Investment made in the prior
                                                                            YoY change
       reporting period (CNY)                 year (CNY)
Note 1: Mainly due to the purchase of collective asset management plan product from securities firm
in the current period.
? Applicable ? N/A
? Applicable □ N/A
                                                                                                                          Unit: CNY
                   Whethe       Industr   Amount     Accum                                    Accum     Reason   Date
          Invest                                                        Project     Project                                Disclosur
                   r it is a   y of the   of input   ulated   Capital                          ulated    s for     of
   Item    ment                                                         progres        ed                                   e index
                    fixed      investm     in the    actual   source                           actual     not    disclo
           form                                                            s        income                                  (if any)
                    asset         ent     reportin    input                                   income    meetin    sure
                           investm      project        g          amount                                                    by the       g the         (if
                             ent                     period        by the                                                   end of      schedul       any)
                                                                   end of                                                    the         e and
                                                                    the                                                    reportin     project
                                                                  reportin                                                    g            ed
                                                                     g                                                      period      income
                                                                   period
                                                                                                                                                                 Announc
                                                                                                                                                                 ement
                                                                                                                                                                 No.
                                                                                                                                                                 on the
                                                                                                                                                                 Impleme
                                                                                                                                                                 ntation of
 Luzhou
                                                                                                                                                                 Luzhou
 Laojiao
                                                                                                                                                                 Laojiao
 Technical
 Upgrade          Self-
                             Yes         Baijiu      0,245.6      0,245.6    financin               1.00%          0.00       0.00      N/A           July       Upgrade
 Project of       built
 Intelligen
                                                                                                                                                                 Intelligen
 t Brewing
                                                                                                                                                                 t Brewing
 (Phase I)
                                                                                                                                                                 (Phase I)
                                                                                                                                                                 by
                                                                                                                                                                 Subsidiar
                                                                                                                                                                 y on
                                                                                                                                                                 http://ww
                                                                                                                                                                 w.cninfo.
                                                                                                                                                                 com.cn/
 Total             --         --           --        0,245.6      0,245.6            --              --            0.00       0.00        --            --             --
? Applicable □ N/A
                                                                                                                                                                Unit: CNY
                                                                                          Chang
                                                                        Chang              es in                               Profit
                                                                         es in              the                                and
                          Abbre                   Accou       Beginn
 Categ                                Initial                             fair            cumul           Amou                 loss       Closin
                          viation                  nting        ing                                                Amou                                Accou
 ory of       Stock                  invest                              value             ative           nt of              during      g book                      Capital
                             of                   measu        book                                                nt of                               nting
 securit      code                    ment                              recogn              fair          purcha                the       balanc                      source
                          securit                 rement      balanc                                                sale                                item
   ies                                 cost                             ized in            value            se                reporti        e
                            ies                    model         e
                                                                         profit           record                                ng
                                                                        or loss           ed into                             period
                                                                                          equity
                                                                                                                                                       Invest
 Dome                                                                            -                                                                     ments
 stic         60121                                                     50,641                                                 8,008,                  in
                                                  value                                                                                                               Own
 and                      GTJA       ,156.7                    0,476.                     0,232.                                          9,389.       other
 foreign                                                                                                                                               equity
 stock                                                                        0                                                                        instru
                                                                                                                                                       ments
                                                                                                                                                       Invest
 Dome                                                                                                                                                  ments
                                                  Fair        15,963             -        13,901                                          14,931
 stic         00224                  1,030,                                                                                   70,359                   in
                                                  value                                                                                                               Own
 and                      SNC                                  ,896.5    1,031,           ,950.2                                          ,950.2       other
 foreign                                                                                                                                               equity
                                                  rement           4    946.30                 4                                                  4
 stock                                                                                                                                                 instru
                                                                                                                                                       ments
                                                                                                                                        Invest
 Dome                                                                                                                                   ments
 stic                                                                                                                                   in
                        LZBA                     value                                                                                             Own
 and       01983                    ,000.0                    4,621.        ,771.0   ,392.7                                 8,392.      other
                         NK                      measu                                                                                             fund
 foreign                                                                                                                                equity
 stock                                                                                                                                  instru
                                                                                                                                        ments
                                                                                                                                        Invest
 Dome                                                                                                                                   ments
                        CTG        542,28        Fair                   264,85       264,85    542,28                       807,13
 stic                                                                                                                                   in
                                                 value                                                                                             Own
 and       01880        Duty-       5,380.                                  3,739.   3,739.    5,380.                       9,120.      other
                                                 measu                                                                                             fund
 foreign                                                                                                                                equity
                        Free               80    rement                        27         27      80                             07
 stock                                                                                                                                  instru
                                                                                                                                        ments
 Total                              4,537.          --        8,994.        4,476.   4,314.    5,380.     0.00              278,85          --        --
□Applicable ? N/A
No such cases in the reporting period
? Applicable ? N/A
? Applicable □ N/A
                                                                                                                                       Unit:CNY 10,000
                                                                                 Total                  Accumula
                                                   Total                                      Total
                                                                               amount                    ted re-                                  Amount
                                                 amount       Accumula                      amount                                Purpose
                                                                                of re-                  purposed       Total                     of funds
                                  Total         of raised        ted                           of                                    and
                                                                              purposed                    funds      amount                        raised
                                amount            funds        amount                      accumula                               direction
   Year       Method                                                            funds                     raised    of unused                     idle for
                                of funds         used in      of raised                     ted re-                              of unused
                                                                              raised in                  as % of      funds                         more
                                 raised             the         funds                      purposed                                funds
                                                                                  the                      total      raised                     than two
                                                reporting       used                         funds                                 raised
                                                                              reporting                   funds                                    years
                                                 period                                      raised
                                                                               period                     raised
             Public
             offering                                          253,081.
             corporate                                                 84
             bond
                                                                                                                                 Deposite
             Public
                                                                                                                                 d in
             offering                           50,443.7       86,104.2                                              71,435.6    special
             corporate
                                                                                                                                 for raised
             bond
                                                                                                                                 funds
             Public
             offering
             corporate
             bond
   Total           --           548,280                                             0             0       0.00%                        --                  0
                                                              Notes for general use of funds raised
 The total amounts of used and unused funds raised include interest on the funds.
? Applicable □ N/A
                                                                                                                             Unit:CNY 10,000
 Committe
                                                                               Investme         Date of                               Whether
      d         Whether        Total
                                                                  Accumula         nt             the                   Whether          the
 investme          the       amount                  Investme                                               Realized
                                         Adjusted                 ted input    progress         projects                   the       feasibility
      nt         project     of funds                    nt                                                  benefits
                                         Investme                  by the        by the        reach the                expected       of the
  projects     has been     raised for               amount in                                                during
                                          nt total                 end of        end of         working                  benefits      project
     and        changed     committe                    the                                                    the
                                          amount                     the       reporting       condition                  have          has
  direction    (including        d                   reporting                                              reporting
                                            (1)                   reporting    period (3)       for their                 been        changed
  of over-       partial    investme                   period                                                 period
                                                                  period (2)                   intended                 achieved     significan
   raised       change)          nt                                             =(2)/(1)
                                                                                                  use                                     tly
   funds
 Committed investment projects
 Technical
 Renovati
 on                                                   45,708.4     313,928.                    30 June
               No                                                                                           N/A         Yes         No
 Project of                                                  2           63                    2021
 Brewing
 (Phase II)
 Project of
 Intelligent
 Upgradin
 g and
 Building
 of the        No                                     4,735.34     8,233.89                    N/A          N/A         No          No
 Informati
 on
 Manage
 ment
 System
 Project of
 Acquiring
 Sealing                     398,400      398,400                                   85.14%
 Equipme                                                                                       30 June
 nt for the    No                                            0     12,043.3                                 N/A         Yes         No
 Cellar of                                                                                     2021
 Huangyi
 Brewing
 Base
 Project of
 Acquiring
 Accessor
 y
 Equipme
 nt for                                                                                        30 June
               No                                            0     4,980.25                                 N/A         Yes         No
 Leaven                                                                                        2021
 Making
 for
 Huangyi
 Brewing
 Base
 Subtotal
 of
 committe                                             50,443.7     339,186.
 d                   --     398,4001      398,400                                    --              --     N/A               --         --
 investme                                                    6           07
 nt
 projects
 Use of over-raised funds
 None
 Total               --      398,400      398,400                                    --              --     N/A               --         --
 Explain
 project by
               N/A
 project
 the
situation
and
reason
for not
reaching
plan
progress
or
expected
benefits
(including
reason
for
inputting
“N/A” for
“Whether
the
expected
benefits
have
been
achieved”
)
Significan
t changes
              N/A
of project
feasibility
Amount,
purpose
and
progress      N/A
of over-
raised
funds
Change
of
implemen
tation site
              N/A
of
investme
nt
projects
Adjustme
nt of the
implemen
tation
mode of
              N/A
raised
funds
investme
nt
projects
              Applicable
              On 14 May 2019, the Company held the First Extraordinary General Meeting of Shareholders of 2019, which considered and
Situation     approved the Proposal on Requesting the Company’s General Meeting of Shareholders to Fully Authorize Chairman of the
of
advance       Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.
investme      According to the Proposal, in the event of inconsistency between the payment of the raised funds and the progress of the project
nt and
              implementation, the Company may make advance investments using other funds (including self-owned funds, bank project
replacem
ent           loans, etc.) according to the actual situation, and replace fund investment other than capital funds when the raised funds are in
              place. As of 31 December 2022, the Company had replaced advance investments of self-pooled funds of CNY 573,178,496.64
              using the raised funds.
Idle
raised
funds
used for
temporar      N/A
y
suppleme
ntary
liquidity
Amount        N/A
and
reason
for
surplus of
funds
raised
 Purpose
 and         The idle raised funds are deposited in the special account No. 9550880046723000135 for raised funds in the Chengdu Branch
 whereabo    of China Guangfa Bank Co., Ltd., the special account No. 517517460013000000860 for raised funds in the Luzhou Branch of
 uts of
 unused      Bank of Communications Co., Ltd., and the special account No. 631395395 for raised funds in the Chengdu Branch of China
 funds       Minsheng Banking Corp., Ltd.
 raised
 Problems
 and other
 situation
 when
             N/A
 raised
 funds are
 used and
 disclosed
Note 1: The subtotal of funds raised for committed projects was CNY 3,984 million, which was the
combined amount of CNY 4,000 million (CNY 2,500 million of corporate bonds issued in August 2019
plus CNY 1,500 million of corporate bonds issued in March 2020) minus the total issuance costs of
CNY 16 million.
Note 2: Because there are uncertainties in the approval and issue time for bond, in order to ensure
smooth progress of the projects and protect the interests of the Company’s shareholders, the
investment sequence and specific amounts of the corresponding raised funds should be determined
by the Chairman of the Board as authorized by the general meeting of shareholders or other persons
as authorized by the Board of Directors within the scope of the four raised funds investment projects
according to the actual needs, provided that the capital funds for each project is no less than 20% of
the total investment.
Note 3: As of 31 December 2022, the Project of Intelligent Upgrading and Building of the Information
Management System was in the process.
Note 4: These raised funds investment projects have helped further expand the Company’s
production and sales, and increase its comprehensive competitiveness. The economic benefits of
these projects cannot be measured separately.
? Applicable ? N/A
No such cases in the reporting period
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
? Applicable ? N/A
Main subsidiaries and joint companies with an over 10% influence on the Company’s net profit
                                                                                                      Unit:CNY
 Company      Company       Business   Registere     Total                   Operating   Operating
                                                                Net assets                             Net profit
  name          type         scope     d capital    assets                   Revenue       profit
                           Luzhou
                           Laojiao
 Luzhou
                           series
 Laojiao                               100,000,0   7,798,894,   2,282,135,   23,969,74    10,532,59    7,904,562,
              Subsidiary   unified
 Sales Co.,                                00.00       814.04       373.83    8,769.23     4,410.23       366.561
                           package
 Ltd.
                           Baijiu
                           sales
Note 1: Net profit increased 30.07% year on year, mainly due to the increased sales revenue from
baijiu, leading to a corresponding increase in profit.
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable ? N/A
Notes for major holding companies and joint stock companies
There were no major holding companies or joint stock companies during the reporting period of which
information shall be disclosed.
? Applicable ? N/A
A. According to the data released by the National Bureau of Statistics, total production of brewed
baijiu by baijiu producers above the designated size was 6.7124 million kl between January and
December 2022, down 5.58% year on year; total sales revenues reached CNY 662.645 billion, up
Though the total consumption in the baijiu industry has been shrinking in recent years, the industry
concentration continues to rise, with a clear trend towards high-quality development of the baijiu
industry.
B. With the recovery of the consumption and the rebound of residents' income, the baijiu industry has
opened a new cycle and entered the era of giant competition. The winning elements of the
competitive landscape have changed, challenging the competitive ability of all systems and the
systematic promotion ability of enterprises. Customer value creation and operational efficiency
improvement have become the base point for marketing innovation.
C. Digital and intelligent technologies have been fully integrated into the production, supply,
circulation, communication and consumption of the baijiu industry, forming a new industrial ecology
with technological and digital empowerment, integrated traditional and intelligent brewing techniques,
and combined offline and online channels.
A. The value of famous baijiu has been highlighted, consumers' demand for high quality baijiu has
increased, the proportion of high-end baijiu consumption has continued to rise, and the advantages of
production regions and brands of famous baijiu will be further enhanced.
B. With social progress, economic development and consumer upgrade, new industries and models
are emerging. Chinese baijiu, with its fully independent intellectual property and independent pricing
rights, has a good opportunity for innovation and breakthrough.
C. Domestic industrial policies favorable to the development of baijiu brands continued to be
introduced, which not only enhanced the confidence of consumers and investors in baijiu, but also
provided strong momentum for the high-quality development of baijiu. Luzhou Laojiao, as a leading
enterprise in China's baijiu industry, embraces a valuable opportunity of strategic development.
D. In recent years, the Company has developed benignly and expanded its operation scale. The
Huangyi Brewery Eco-Park with solid-state baijiu brewing scale, leaven production capacity and
intelligent brewing level has been built, and the layout of capacity guarantee has been completed
ahead of schedule. The Company enhanced the overall corporate governance, making its
management more powerful, scientific, systematic and pragmatic. In the accelerating reshuffle of the
baijiu industry, Luzhou Laojiao has the leading edge and strong strength of maintaining stability while
seeking progress and achieving leapfrog development.
A. Macroeconomic risk: The global economy will continue to face multiple pressures in 2023. The
ongoing Russia-Ukraine conflict has further intensified the impact on the global economy, with
successive bank crashes in Europe and the US, which may trigger a contraction in monetary policies
and recession, thereby adversely affecting the domestic consumer market.
B. Market competition risk: China's population is experiencing negative growth again, the consumer
market size tends to shrink, and consumption upgrade and downgrade coexist. As the market
concentration continues to rise, the industry will gradually enter the existing competition stage, and
competition among baijiu enterprises will become increasingly intense. To this end, the Company will
firmly insist on its strategic goals and seize opportunities to achieve high-quality leapfrog
development.
No change occurred to the Company’s "14th five-year" development strategy. For details, see the
For the reporting period, operating revenue amounted to CNY 25.124 billion, up 21.71% year on year;
and the net profit attributable to the shareholders of the listed company reached CNY 10.365 billion,
up 30.29% year on year. The Company has successfully completed its business target “to achieve a
year-on-year increase in operating revenue by at least 15%" as set by the Board of Directors at the
beginning of the year.
According to the Outline of Production and Operation in 2023 reviewed and approved by the Board of
Directors, the Company will closely center on the development theme of "promoting reform, enhancing
collaboration, focusing on main areas and achieving leapfrog development", and strive to achieve a
year-on-year increase in operating revenue by at least 15% (The business plan in 2023 is formulated by
the Company according to the 14th five-year strategic plan and based on its business capabilities. It
does not represent the Company's profit forecast for 2023, and is not a commitment by the Company.
Whether it can be achieved depends on many factors such as changes in market conditions and efforts
of the operation team. There are great uncertainties. Investors are kindly reminded to pay special
attention).
The main measures are as follows:
A. Promote reform and comprehensively enhance endogenous driving force
Reform of idea and work style led by breakthrough and progress. The Company must make
efforts to eliminate three harmful ideas and work styles, namely the ideas and work styles of
pessimism and fear, complacency, and bureaucracy.
Reform of the governance model themed by overlapping strengths. The Company will advance
the reform and optimization of the control model, organizational structure and operational mechanism
in an orderly manner, continuously enhance collaborative management, and strive to achieve
convergence effects in business management, industrial layout, quality and efficiency, innovation
capability and brand value.
Reform of the top-level architecture guaranteed by digital and intelligent support. The
Company will effectively plan and design the top-level architecture of digitalization and intelligence,
promote the digital upgrade of products, consumers, channel customers, employees and
organizations, and financial services, and advance the integration of order, capital, information,
logistics and administration.
Reform of internal procurement control driven by efficiency improvement. An internal control
and management system for the whole procurement process will be established to lay a solid
foundation for the Company to keep pace with and even seize the opportunity in the fierce market
competition.
B. Enhance collaboration and comprehensively improve enterprise effectiveness
Enhance strategic collaboration. The Company will develop a three-year development plan, and
adhere to the "one map" for current and long-term development, the "one chessboard" for the whole
Company and the "one network" of national market to complete sales tasks with high quality.
Enhance organizational collaboration. The Company will accelerate the development of a modern
management model, comprehensively break down organizational barriers, improve organizational
effectiveness and form an organizational operating system with rapid response, clear tasks and
standardized actions.
Enhance PR collaboration. In accordance with the general idea of "overall thinking, forward-looking
planning, substantial results and collaboration", a three-dimensional and long-term PR system that
covers all staff will be built to constantly inject power for sales development.
C. Focus on main areas and comprehensively win the battle.
Focus on sales breakthrough. The Company will seize core resources, master core tactics, and
adhere to the path of brand-leading marketing. It will build core markets, gather core strength,
promote national development strategies, advance innovation in product lines and models, and create
more growth poles for Luzhou Laojiao.
Focus on the development of a brand culture. The Company will create a pilgrimage site of
baijiu in the world, seize the first and only brand promotion resources, promote the transformation of
traditional publicity to a new traffic matrix, and build up a new media matrix for Luzhou Laojiao
through content and form innovation to form the main entrance for converging traffic.
Focus on quality assurance. Based on the new "1 + 2 + N" capacity pattern, the Company will insist
on quality as life, constantly improve the quality traceability system covering the whole life cycle of
products, strengthen scientific and technological research and development and transformation of
achievements, and build a leading technological innovation highland in the industry.
D. Achieve leapfrog development and take the lead in seizing the development highland
Achieve leapfrog development in targeted objectives. The company will make leapfrog
breakthrough in the National Cellar series and maintain high-speed growth. More efforts and another
breakthrough will be made for the Luzhou Laojiao series. The marketing layout and market
breakthrough in the innovation sector will be accelerated to achieve objectives as soon as possible.
Achieve leapfrog development in the leadership of party building. The Company will enhance
party building in terms of politics, ideology, organization, work style and discipline, comprehensively
strengthen scientific party building, and continue to promote the development of trade unions, the
Communist Youth League and the United Front Work, to form an inspiring pattern that integrates
energy and wisdom.
Achieve leapfrog development in talent improvement. The Company will make more efforts in the
scale, structure and quality of talent to raise its human-efficiency ratio to a higher level. By
continuously enriching the talent ladder, optimizing the talent structure, and improving material
incentives, spiritual incentives and growth incentives, the Company will further stimulate the
endogenous driving force for enterprise development.
communication, interview, etc. in the reporting period
? Applicable ? N/A
                                                                                                Main inquiry
                                                                                                                Index to main
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  Date of visit   Place of visit         Way of visit    Type of visitor          Visitor                           inquiry
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                                                                                                                 information
                                                                                                  provided
                  Company                                                   Institutional      Company          http://www.cni
                  Headquarters                                              investor           performance      nfo.com.cn/
                  Company                                                                      Company          http://www.cni
                  Headquarters                                                                 performance      nfo.com.cn/
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                  Company                                                   and individual     trends and       http://www.cni
                  Headquarters                                              investors and      company          nfo.com.cn/
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                                                                            media              performance
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                                        Other            Other              All investors
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                                        Field survey     Institution
                       Section IV Corporate Governance
Since it was listed, in accordance with the Corporate Law, the Securities Law, The Listed Company
Governance Standards and other laws, administrative regulations and departmental rules and
normative documents, the Company has constantly perfected corporate governance structure,
standardized its operation, established the rules and system on the basis of the Company's articles of
association whose main framework is the rules of procedure of the shareholders' general meeting,
rules of procedure of the board of directors and rules of procedure of the board of supervisors, which
is formed the management system whose main structure is the shareholders meeting, board of
directors, board of supervisors and management. During the reporting period, the Company won a
number of honors and awards, including “The 24th Golden Bull Awards—Best Investment Value
Award and Golden Bull Board Secretary Award”, “The 13th Tianma Awards—Best Investor Relations
Award”, “The 16th Awards of the Value of Listed Companies in China—Top 100 Main Board Listed
Companies by Value, Outstanding Management Team of the Year, and Sunshine Board Secretary”,
“Listed Companies Market Capitalisation Ranking—Top 50 Most Popular Listed Companies among
Institutions”, “Top 10 Influential Listed Companies of the Year, and Value Focus Listed Company of
the Year”, “The List of Gold Medal Companies—Investment Value Top List”, and “China Association
for Public Companies—Listed Company Board Office Best Practice”.
Any incompliance with the applicable laws and administrative regulations, as well as regulations
related to the governance of listed companies issued by the CSRC
? Yes ? No
There is no incompliance with the applicable laws and administrative regulations, as well as
regulations related to the governance of listed companies issued by the CSRC.
businesses which are separated from the controlling shareholder and
the actual controller
The Company has an independent and complete production and operation system and independent
decision-making ability. There is no horizontal competition between the Company and the controlling
shareholders and its subsidiaries. The Company has daily affiliated transactions with the controlling
shareholders and its subsidiaries. Such daily affiliated transactions belong to the need of rational
allocation of resources and do not affect the independence of the Company. For affiliated
transactions, the Company has strictly fulfilled the relevant decision-making procedures and
information disclosure obligations, and implemented the system of Non-executive directors' prior
examination and avoidance system of related directors (shareholders).
Asset integrity. There are clear ownership and independency of the Company's assets invested by
controlling shareholders. The Company has an independent and complete production, supply, sales
system and auxiliary production system and supporting facilities. The industrial property rights,
trademarks and non-patented technology and other intangible assets are owned by the Company.
There is no situation that the controlling shareholders occupy and transfer the assets of the company.
Business apart. The Company is totally independent in the operation, production and sales of baijiu
series of “Luzhou Laojiao” and “National Cellar 1573”. It has the ability to operate independently in the
market. The board of directors and the management can independently make production and
operation decisions within the corresponding authority.
The Company has built independent labor management, personnel management and salary
management. The Company has established a relatively complete labor management system and
post responsibility system. Meanwhile, the Company's senior management personnel all receive
salary in the Company, but not at the controlling shareholders.
Organization independence. The Company has independent production management organization
and system, independent office and production management place, and independent management
organization, functional organization and branch.
Financial independence. The Company has completed and independent financial department.
Independent accounting system and financial management are established. The Company separately
sets bank accountants, conducts external settlement and pays taxes according to law.
?Applicable ? N/A
shareholders convened during the reporting period
                                          Investor           Convened       Disclosure
     Meeting            Type                                                                    Resolutions
                                     participation ratio       date            date
                                                                                           Announcement on
                   General Meeting                                                         Resolutions of The
 General Meeting                               63.73%      29 June 2022   30 June 2022
                   of Shareholders                                                         2021 Annual General
 of Shareholders
                                                                                           Meeting of
                                                                                                          Shareholders
                                                                                                          Announcement No:
                                                                                                          (http://www.cninfo.co
                                                                                                          m.cn/)
                                                                                                          Announcement on
                                                                                                          Resolutions of The
                                                                                                          First Special Meeting
 The First Special
                                                                                                          of Shareholders of
 Meeting of            Special Meeting                       16 August             17 August
 Shareholders of       of Shareholders                       2022                  2022                   Announcement No:
                                                                                                          (http://www.cninfo.co
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shareholders with resumed voting rights
?Applicable ? N/A
                                                                        Shares     Shares
                                                             Shares
                                                                        increas    decrea                    Shares
                                                             held by
                                                                           ed        sed                     held by
                                                               the                              Other
                        Incumb                                           during     during                   the end    Reason for
                                          Ag    Period of   beginnin                          increase/
 Name         Title       ent/   Gender                                    the        the                     of the      share
                                           e     service     g of the                         decrease
                        Former                                           reporti    reporti                 reporting    changes
                                                            reporting                          (share)
                                                                           ng         ng                      period
                                                              period
                                                                         period     period                   (share)
                                                             (share)
                                                                        (share)    (share)
                                                                                                                        Restricted
           Chairman                                                                                                     share
 Liu                    Incumb                 2015.6.30-
           of the                Male     53                 192,187    95,900           0           0       288,087
 Miao                   ent                    2024.6.29                                                                incentive
           board
                                                                                                                        plan
                                                                                                                        Restricted
           Director,                                                                                                    share
 Lin                    Incumb                 2015.6.30-
           General               Male     49                        0   95,900           0           0        95,900
 Feng                   ent                    2024.6.29                                                                incentive
           manager
                                                                                                                        plan
                                                                                                                        Restricted
           Director,
 Wang                                                                                                                   share
           Deputy       Incumb                 2015.3.6-
 Hongb                           Male     59                        0   76,700           0           0        76,700
           general      ent                    2024.6.29                                                                incentive
 o
           manager
                                                                                                                        plan
                                                                                                                        Restricted
           Director,
 Xiong                                                                                                                  share
           Deputy       Incumb                 2021.6.29-
 Pingtin                         Female   47                        0   62,800           0           0        62,800
           general      ent                    2024.6.29                                                                incentive
 g
           manager
                                                                                                                        plan
           Non-
 Liu                    Incumb                 2018.6.27-
           executive             Male     53                        0         0          0           0              0
 Junhai                 ent                    2024.6.29
           director
           Non-
 Chen                   Incumb                 2021.6.29-
           executive             Male     65                        0         0          0           0              0
 You’an                 ent                    2024.6.29
           director
 Lyu       Non-                                2021.6.29-
                        Incumb
 Xianpe    executive             Male     59                        0         0          0           0              0
                        ent                    2024.6.29
 i         director
 Li        Non-         Incumb   Male     59   2022.6.29-           0         0          0           0              0
 Guowa     executive    ent                    2024.6.29
           director
 ng
 Qian      External     Incumb                 2015.6.30-
                                 Male     59                     0        0        0        0         0
 Xu        director     ent                    2024.6.29
 Ying      External     Incumb                 2016.9.13-
                                 Male     53                     0        0        0        0         0
 Hanjie    director     ent                    2024.6.29
 Gong
           External     Incumb                 2022.6.29-
 Zheng                           Female   53                     0        0        0        0         0
           director     ent                    2024.6.29
 ying
           Chairman
           of the
 Yang                   Incumb                 2021.6.29-
           Board of              Male     46                     0        0        0        0         0
 Ping                   ent                    2024.6.29
           Supervisor
           s
 Li
                        Incumb                 2018.6.27-
 Guangj    Supervisor            Male     53                     0        0        0        0         0
                        ent                    2024.6.29
 ie
 Li                     Incumb                 2021.6.29-
           Supervisor            Female   36                     0        0        0        0         0
 Lunyu                  ent                    2024.6.29
 Tang                   Incumb                 2022.6.29-
           Supervisor            Male     46                     0        0        0        0         0
 Shijun                 ent                    2024.6.29
                        Incumb                 2022.6.29-
 Ou Fei    Supervisor            Male     37                     0        0        0        0         0
                        ent                    2024.6.29
                                                                                                           Restricted
                                                                                                           share
                                                                                                           incentive
 Shen      Deputy                                                                                          plan and
                        Incumb                 2002.6.30-
 Caihon    general               Male     57                138,375   76,700   19,500       0    195,575   shareholdin
                        ent                    2024.6.29
 g         manager                                                                                         g reduction
                                                                                                           on the
                                                                                                           open
                                                                                                           market
                                                                                                           Restricted
 Xie                    Incumb                 2015.3.6-                                                   share
           CFO                   Female   53                     0    76,700       0        0     76,700
 Hong                   ent                    2024.6.29                                                   incentive
                                                                                                           plan
                                                                                                           Restricted
           Deputy                                                                                          share
 He                     Incumb                 2015.6.30-
           general               Male     56                     0    76,700       0        0     76,700
 Cheng                  ent                    2024.6.29                                                   incentive
           manager
                                                                                                           plan
                                                                                                           Restricted
           Deputy                                                                                          share
 Zhang                  Incumb                 2015.12.29
           general               Male     51                     0    76,700       0        0     76,700
 Suyi                   ent                    -2024.6.29                                                  incentive
           manager
                                                                                                           plan
           Deputy
                                                                                                           Restricted
           general
           manager,     Incumb                 2021.9.20-                                                  share
 Li Yong                         Male     46                     0    62,800       0        0     62,800
           Secretary    ent                    2024.6.29                                                   incentive
           of the
           board                                                                                           plan
 Sun       Non-                                2021.6.29-
 Dongs     executive    Former   Male     64                     0        0        0        0         0
           director                            2022.6.29
 heng
 Lian                                          2012.6.27-
           Supervisor   Former   Male     53                     0        0        0        0         0
 Jing                                          2022.5.28
                                                                                                           Restricted
 Guo                                           2021.6.29-                                                  share
           Supervisor   Former   Female   44                     0    19,000       0        0     19,000
 Shihua                                        2022.5.28                                                   incentive
                                                                                                           plan
 Total           --       --        --    --       --       330,562            19,500       0                     --
Whether any director, supervisor or senior management resigned before the expiry of their periods of
service during the reporting period
□ Yes ? No
Changes in directors, supervisors, and senior management
? Applicable □ N/A
         Name                  Title                Type              Date                  Reason
 Sun Dongsheng        Independent director   Resignation      2022.6.29               Voluntary resignation
 Shen Caihong         Director               Resignation      2022.5.31               Voluntary resignation
 Lian Jing            Supervisor             Resignation      2022.5.28               Voluntary resignation
 Guo Shihua           Supervisor             Resignation      2022.5.28               Voluntary resignation
Professional background, work experience and major duties of current directors, supervisors and
senior management.
Mr. Liu Miao, male, born in 1969, MBA of Wright State University in the USA, Master of Chinese
Brewing, senior marketing specialist. He used to serve as planning minister, general manager of
Sales Company, general manager assistant, and deputy general manager of the Company. At
present, he is secretary of the party committee and chairman of the board in Laojiao Group, secretary
of the party committee and chairman of the board in the Company, as well as chairman of the board
in Luzhou Sanrenxuan Liquor Industry Co., Ltd.
Mr. Lin Feng, male, born in 1973, Master degree, senior marketing specialist. He was deputy general
manager and general manager of Sales Company, director of marketing, director of human resources,
chief dispatcher, deputy general manager of the Company. At present, he is deputy secretary of the
party committee, director, and general manager of the Company.
Mr. Wang Hongbo, male, born in 1964, Master degree. He was director and secretary of party
committee of Luzhou Commerce Bureau, director of Luzhou Liquor Industry Development Bureau,
director of Luzhou branch of China council for the promotion of international trade, deputy secretary
general, office director of Luzhou Municipal Party Committee and deputy secretary of the party
committee of the Company. At present, he is member of the party committee, director, and deputy
general manager of the Company, chairman of the board of Luzhou Laojiao International
Development(Hong Kong)Co., Ltd., as well as executive director of Luzhou Laojiao I & E Co., Ltd.
Ms. Xiong Pingting, female, born in 1975, holds a master's degree and the titles of Human Resource
Management Professional (grade one), Economist, and Political Mentor. Positions previously held by
her include Deputy Director and Director of the Office of Luzhou Laojiao Sales Co., Ltd., Deputy
Director of the Office of Jiangyang District People's Government of Luzhou (temporary), Deputy
Director of the Human Resources Department and Corporate Management Department of Luzhou
Laojiao Co., Ltd., General Manager of the Brand Operation Department, Director of the Office
(concurrently), Secretary of the general Party branch, and Deputy General Manager of Luzhou
Laojiao Sales Co., Ltd. Currently, she serves as Member of the Party Committee, Director, Deputy
General Manager, and Chairman of the Labor Union of the Company.
Mr. Liu Junhai, male, born in 1969, holds a Ph.D. degree in law and is a doctoral supervisor.
Positions previously held by him include Assistant to the Director and Researcher at the Institute of
Law of the Chinese Academy of Social Sciences ("CASS"), Professor at CASS, Vice Chairman of
China Consumers Association, and Deputy Director Researcher at the Planning Committee under the
China Securities Regulatory Commission ("CSRC"). Currently, he serves as Professor at the Law
School of Renmin University of China, Director at the Institute of Commercial Law of Renmin
University of China, Arbitrator at China International Economic and Trade Arbitration Commission and
Beijing Arbitration Commission (Beijing International Arbitration Center) (concurrently). He has served
as a non-executive director of the Company since June 2018.
Mr. Chen You'an, male, born in 1958, holds an Eng.D. degree in management science and
engineering and is a Senior Engineer. He once took a job at government macro regulation agencies,
development financing agencies, and local and national sovereign wealth fund agencies. Besides, he
served as Deputy General Manager of Central Huijin Investment Ltd. and Chairman of China Galaxy
Financial Holdings Co., Ltd. and China Galaxy Securities Co., Ltd. (concurrently). Currently, he is
Independent Director of CPIC Fund Management Co., Ltd., Nomura Orient International Securities
Co., Ltd., Hexie Health Insurance Co., Ltd., and Tech-bank Food Co., Ltd. He has served as a non-
executive director of the Company since June 2021.
Mr. Lyu Xianpei, male, born in 1964, holds a Ph.D. degree in accounting. Positions previously held by
him include Vice Dean at the School of Accounting and Director at the Auditing Department of
Southwestern University of Finance and Economics. Currently, he serves as Professor and Doctoral
Supervisor at Southwestern University of Finance and Economics, Chairman of Sichuan Educational
Audit Society, as well as Independent Director of Sichuan Teway Food Group Co., Ltd., North
Chemical Industries Co., Ltd., and HuangShan NOVEL Co., Ltd. He has served as a non-executive
director of the Company since June 2021.
Mr. Li Guowang, male, born in 1963, holds a postgraduate degree and is a senior economist. He
once served as the Deputy Director of the Information Center of the Ministry of Commerce, Deputy
General Manager of Futures Brokerage Co., Ltd. under China Banking and Insurance Information
Technology Management Co., Ltd., General Manager of the Shanghai Securities Business
Department of China Banking and Insurance Information Technology Management Co., Ltd., Director
of the Strategic Development Department of the R&D Center of China Galaxy Securities Co., Ltd.,
General Manager of the R&D Center of Shanghai Securities Co., Ltd., Marketing Director of Galaxy
Asset Management Co., Ltd., Director of the Research Institute of Hwa Bao Securities Co., Ltd., Chief
Economist and Director of the Research Institute of Zhongshan Securities Co., Ltd., and Chief
Economist of Shanghai Dalu Futures Co., Ltd. At present, he is the Deputy Director of the Green
Finance Committee of the Jiangsu Financial Association, part-time professor at the Law School of
Shanghai University, special professor at Qinghai Minzu University, member of the Association of
Zhejiang Talent in Shanghai, and Director of Shanghai Jiayan Supply Chain Management Co., Ltd.
He has served as a non-executive director of the Company since June 2022.
Mr. Qian Xu, Male, born in 1963, PhD. He was general manager and chairman of the board of Beijing
Enterprises Real-Estate Group Co., Ltd.. At present, he is chairman of the board and general
manager of Beijing Enterprises Urban Development Group Co., Ltd., chairman of the board of Beijing
Properties (Holdings) Limited (Listed on the Hong Kong Stock Exchange), non-executive director
of CAQ Holdings Limited (Listed on the Australian Stock Exchange). He has served as a director of
the Company since June 2015.
Mr. Ying Hanjie, Male, born in 1969, Doctor of Biochemistry, professor, and academician of the
Chinese Academy of Engineering. He was deputy director of Pharmacy and Life Sciences School of
Nanjing University of Technology. At present, he is director of National Biochemical Engineering
Technology Research Center of Nanjing Tech University, chairman of the board of Nanjing
Biotogether Co., Ltd., director of Nanjing High Tech University Biological Technology Research
Institute Co., Ltd., and director of Jiangsu Institute of Industrial Biotechnology. He has served as a
director of the Company since September 2016.
Ms. Gong Zhengying, female, born in 1969, holds a postgraduate degree and is a senior economist.
She once served as the Deputy Head of the Open Development and Social System Section of
Luzhou Economic System Reform Commission, Deputy Head and Head of the Enterprise Property
Rights Supervision Section of Luzhou State-owned Assets Supervision and Administration
Commission, Party Secretary and Chairman of Luzhou Xinglu Asset Management Co., Ltd.,
Chairman of Luzhou Parking Lot Infrastructure Investment Co., Ltd., and Executive Director (legal
representative) of Luzhou Qihang Parking Lot Construction Investment Co., Ltd. and Luzhou Xinglu
Lantian Market Management Co., Ltd. At present, she is a full-time external director of Luzhou
Laojiao Group Co., Ltd., Luzhou Aviation Development Investment Group Co., Ltd., Sichuan
Lutianhua Co., Ltd., Luzhou Industrial Development Investment Group Co., Ltd. and Luzhou Yunlong
Airport Development Co., Ltd. She has served as a director of the Company since June 2022.
Mr. Yang Ping, male, born in 1976, Professor of Engineering, holds a doctoral degree. Positions
previously held by him include Deputy Director and Director at the National Cellar Workshop Section,
Director at the Production and Technology Department, and Deputy General Manager of Luzhou
Laojiao Brewing Co., Ltd. Currently, he is Chairman of the Board of Supervisors of the Company, as
well as Secretary of the Party Committee and General Manager of Luzhou Laojiao Brewing Co., Ltd.
Mr. Li Guangjie, male, born in 1969, Master degree, economist. He was manager of Planning
Department of the Company, deputy director of Sales Company, manager of Import and Export
company, general manager assistant of Sales Company. At present, he is supervisor and deputy
general manager of Sales Company.
Ms. Li Lunyu, female, born in 1986, holds a university degree as well as is Assistant Political Mentor
and Assistant Engineer. Positions previously held by her include Publicity Officer at the Office of the
CPC Luzhou Laojiao Committee, Deputy Head and Manager of Tianjin Division of the Business
Department for Luzhou Laojiao Tequ 60 and 80, Secretary of the CPC National Cellar Section Branch
of Luzhou Laojiao Brewing Co., Ltd., Director of the Office of the CPC Luzhou Laojiao Brewing
Committee, and Director of the Discipline Inspection Department and Vice Chairman of the Labor
Union of Luzhou Laojiao Brewing Co., Ltd. Currently, she is Supervisor, Vice Chairman of the Labor
Union, and Director of the Office of the Labor Union of the Company.
Mr. Tang Shijun, male, born in 1976, holds a bachelor's degree and is a senior accountant. He once
served as the Head of the Finance Department and Director of the Business Finance Center of
Luzhou Laojiao Lundao Liquor Sales Co., Ltd., Audit Manager of Sichuan Balance C.P.A, Chief
Controller of Shanghai Pharmaceutical (Luzhou) Co., Ltd., Chief Accountant and Director of Luzhou
Naxi District State-owned Assets Management Co., Ltd., and Director of the Financing Department of
Luzhou Huixing Investment Group Co., Ltd. At present, he is a part-time external supervisor of
Luzhou Laojiao Group Co., Ltd., Luzhou Public Transport Group Co., Ltd. and Digital Luzhou
Industrial Investment Group Co., Ltd., as well as Manager of the Finance and Asset Management
Department of Luzhou State Owned Capital Operation Management Co., Ltd. He has served as a
supervisor of the Company since June 2022.
Mr. Ou Fei, male, born in 1985, holds a bachelor's degree. He once worked in Guizhou Renhuai
Fengzhiji Liquor Co., Ltd., Sichuan Dashan Law Firm and Jiangyang District People's Procuratorate,
Luzhou City. At present, he is a full-time external supervisor of Sichuan Lutianhua Co., Ltd., Luzhou
Industrial Development Investment Group Co., Ltd., Sichuan Xinhuoju Chemical Co., Ltd. and Luzhou
State Owned Capital Operation Management Co., Ltd. He has served as a supervisor of the
Company since June 2022.
Mr. Shen Caihong, Male, born in 1966, Master degree, professor-level senior engineer, one of the
first batch of representative inheritors of national intangible cultural heritage, one of the first batch of
“Master of Chinese Brewing”, and one of the first batch of "Sichuan craftsmen". He was manager of
the Company’s leaven-making branch, manager of base baijiu company, general manager assistant
and director of production department. At present, he is deputy general manager, chief engineer,
director of national solid brewing engineering technology research center and chairman of the board
of Luzhou Pinchuang Technology Co., Ltd.
Ms. Xie Hong, female, born in 1969, Master degree, senior accountant, and senior economist. She
was section chief of Treasury Section of the Finance Bureau, section chief of Non-tax Revenue
Collection Management Section, director of Luzhou Municipal Finance Treasury Payment Center,
chief accountant of Luzhou Finance Bureau. At present, she is a member of the party committee and
CFO of the Company.
Mr. He Cheng, male, born in 1966, Master of Management Economics of Nanyang Technological
University, senior engineer, expert who receives special allowances from the State Council, Master of
Chinese Baijiu, and Master of Chinese Brewing. He was chief dispatcher of the Company, general
manager of Brewing Company, as well as director of the business administration department, director
of the human resources department, director of the quality department, and director of the dispatching
center of the Company. At present, he is a member of the party committee, deputy general manager
and chief quality officer of the Company.
Mr. Zhang Suyi, male, born in 1971, PhD, professor-level senior engineer, representative inheritor of
Sichuan Intangible Cultural Heritage. He was a worker, production team leader and assistant
superintendent at Brewing Workshop No. 6, vice director and director of Gouchu Center, and deputy
chief engineer of the Company, as well as deputy general manager, and director of the Baijiu Body
Design Centre of Brewing Company. At present, he is deputy general manager, director of safety and
environmental protection, and chief engineer of baijiu body design of the Company.
Mr. Li Yong, male, born in 1977, holds a postgraduate degree and is a brewing engineer. He once
worked in the education sector at the Party and government organizations at the township level as
well as departments at the county and municipal levels. Also, he used to be Director of the Group
Office of Luzhou Laojiao Group, Director of the General Manager’s Office of the Company, as well as
Deputy Secretary of the Party Committee, Secretary of the Party Committee, and Deputy General
Manager of Sales Company. Currently, he is Deputy General Manager, Secretary of the Board, and
member of the Discipline Inspection Committee of the Company, as well as Chairman of the Board of
Luzhou Laojiao Technology Innovation Co., Ltd.
Position in shareholder-holding companies
? Applicable ? N/A
                                                                                                         Any
                       Name of           Position in                                                remunerations
                     shareholder-       shareholder-       Beginning date       Ending date of      received from
      Name
                        holding            holding            of term               term             shareholder-
                      companies          companies                                                      holding
                                                                                                      companies
                                     Secretary of the
                                     party committee,
 Liu Miao         Laojiao Group                          11 March 2022                             No
                                     Chairman of the
                                     board
 Gong Zhengying   Laojiao Group      Director                                                      No
 Tang Shijun      Laojiao Group      Supervisor                                                    No
Position in other companies
? Applicable ? N/A
                                                                                                          Any
                                                         Position in      Beginning     Ending
                                                                                                    remunerations
      Name             Name of other companies             other           date of      date of
                                                                                                    received from
                                                         companies          term         term
                                                                                                   other companies
                  China International Economic and
                  Trade Arbitration Commission, and
 Liu Junhai       Beijing Arbitration Commission        Arbitrator
                  (Beijing International Arbitration
                  Center)
 Liu Junhai       Institute of Commercial Law of        Director
                 Renmin University of China
                 CPIC Fund, Nomura Oriental
                                                         Non-
                 International Securities Co., Ltd.,
Chen You’an                                              executive
                 Hexie Health Insurance Co., Ltd.,
                                                         director
                 and Tech-bank Food Co., Ltd.
                 Sichuan Education and Audit
Lyu Xianpei                                              Chairman
                 Society
                 Sichuan Teway Food Group Co.,
                                                         Non-
                 Ltd., North Chemical Industries Co.,
Lyu Xianpei                                              executive
                 Ltd., and HuangShan NOVEL Co.,
                                                         director
                 Ltd.
                 Green Finance Committee of the          Vice
Li Guowang
                 Jiangsu Financial Association           chairman
                                                         Adjunct
Li Guowang       Law School of Shanghai University
                                                         professor
                                                         Distinguishe
Li Guowang       Qinghai Minzu University
                                                         d professor
                 Association of Zhejiang Talent in
Li Guowang                                               Director
                 Shanghai
                 Shanghai Jiayan Supply Chain
Li Guowang                                               Director
                 Management Co., Ltd.
                                                         Chairman of
                 Beijing Enterprises Urban               the board,
Qian Xu
                 Development Group Co., Ltd.             general
                                                         manager
                 Beijing Properties (Holdings)           Chairman of
Qian Xu
                 Limited                                 the board
                                                         Non-
Qian Xu          CAQ Holdings Limited.                   executive
                                                         director
                 National Biochemical Engineering
Ying Hanjie      Technology Research Center of           Director
                 Nanjing University of Technology
                                                         Chairman of
Ying Hanjie      Nanjing Biotogether Co., Ltd.
                                                         the board
                 Nanjing High Tech University
                 Biological Technology Research
Ying Hanjie                                              Director
                 Institute Co., Ltd., and Jiangsu
                 Institute of Industrial Biotechnology
                 Luzhou Aviation Development
                 Investment Group Co., Ltd.,
                 Sichuan Lutianhua Co., Ltd.,
Gong Zhengying   Luzhou Industrial Development           Director
                 Investment Group Co., Ltd., Luzhou
                 Yunlong Airport Development Co.,
                 Ltd.
                 Luzhou Public Transport Group
Tang Shijun      Co., Ltd., Digital Luzhou Industrial    Supervisor
                 Investment Group Co., Ltd.
                 Finance and Asset Management
                 Department of Luzhou State
Tang Shijun                                              Manager
                 Owned Capital Operation
                 Management Co., Ltd.
                 Sichuan Lutianhua Co., Ltd.,
                 Luzhou Industrial Investment Group
Ou Fei                                                   Supervisor
                 Co., Ltd., Sichuan Xinhuoju
                 Chemical Co., Ltd., Luzhou State
                    Owned Capital Operation
                    Management Co., Ltd.
Punishments imposed in the recent three years by the securities regulators on the incumbent
directors, supervisors and senior management as well as those who left in the reporting period
? Applicable ? N/A
The following describes the decision-making procedures, grounds on which decisions are made and
actual remuneration payment of directors, supervisors and senior management.
Decision-making procedures for directors, supervisors and senior management: The remuneration of
non-executive directors, external directors and external supervisors shall be determined by the
general meeting of shareholders, and the remuneration of directors, supervisors and senior
management who hold positions within the Company shall be determined by relevant rules of SASAC
of Luzhou and relevant rules of the Company.
Grounds on which decisions are made of directors, supervisors and senior management: Calculate
according to the assessment index and weight established at the beginning of the year.
Actual remuneration payment of directors, supervisors and senior management: Details refer to
“Remuneration of directors, supervisors and senior management during the reporting period”.
Remuneration of directors, supervisors and senior management during the reporting period
                                                                                           Unit: CNY 10,000
                                                                               Total before-
                                                                                               Remuneration
                                                                                    tax
                                                               Incumbent/                       from related
     Name                  Position           Gender   Age                    remuneration
                                                                 Former                        parties of the
                                                                                 from the
                                                                                                  Company
                                                                                Company
 Liu Miao         Chairman of the board       Male       53   Incumbent              164.63    No
                  Director, General
 Lin Feng                                     Male       49   Incumbent              162.69    No
                  manager
                  Director, Deputy general
 Wang Hongbo                                  Male       59   Incumbent              130.49    No
                  manager
                  Director, Deputy general
 Xiong Pingting                               Female     47   Incumbent               94.34    No
                  manager
 Liu Junhai       Non-executive director      Male       53   Incumbent                 9.52   No
 Chen You’an      Non-executive director      Male       65   Incumbent                 9.52   No
 Lyu Xianpei      Non-executive director      Male       59   Incumbent                 9.52   No
 Li Guowang       Non-executive director      Male       59   Incumbent                  4.9   No
 Qian Xu          External director           Male       59   Incumbent                 9.52   No
 Ying Hanjie      External director           Male       53   Incumbent                 9.52   No
 Gong
                  External director           Female     53   Incumbent                    0   No
 Zhengying
                  Chairman of the Board of
 Yang Ping                                     Male                   46   Incumbent                119.55      No
                  Supervisors
 Li Guangjie      Supervisor                   Male                   53   Incumbent                100.72      No
 Li Lunyu         Supervisor                   Female                 36   Incumbent                 48.49      No
 Tang Shijun      Supervisor                   Male                   46   Incumbent                     0      No
 Ou Fei           Supervisor                   Male                   37   Incumbent                     0      No
 Shen Caihong     Deputy general manager       Male                   57   Incumbent                113.04      No
 Xie Hong         CFO                          Female                 53   Incumbent                128.62      No
 He Cheng         Deputy general manager       Male                   56   Incumbent                 110.2      No
 Zhang Suyi       Deputy general manager       Male                   51   Incumbent                107.28      No
                  Deputy general manager,
 Li Yong                                       Male                   46   Incumbent                 94.34      No
                  Secretary of the board
 Sun
                  Non-executive director       Male                   64   Former                        0      No
 Dongsheng
 Lian Jing        Supervisor                   Male                   53   Former                        0      No
 Guo Shihua       Supervisor                   Female                 44   Former                    21.72      No
 Total                         --                   --           --             --               1,448.611           --
Note 1: The table above shows the remunerations of directors, supervisors and senior management
for their periods of service in 2022.
           Meeting                  Convened date          Disclosure date                        Resolutions
                                                                                    Announcement on Resolutions of the 13th
 The 13th Meeting of the                                                            Meeting of the 10th Board of Directors
                                                                                    (http://www.cninfo.com.cn/)
                                                                                    Announcement on Resolutions of the 14th
 The 14th Meeting of the                                                            Meeting of the 10th Board of Directors
                                                                                    (http://www.cninfo.com.cn/)
                                                                                    Announcement on Resolutions of the 15th
 The 15th Meeting of the                                                            Meeting of the 10th Board of Directors
                                                                                    (http://www.cninfo.com.cn/)
                                                                                    Announcement on Resolutions of the 16th
 The 16th Meeting of the                                                            Meeting of the 10th Board of Directors
                                                                                    (http://www.cninfo.com.cn/)
                                                                                    Announcement on Resolutions of the 17th
 The 17th Meeting of the                                                            Meeting of the 10th Board of Directors
                                                                                    (http://www.cninfo.com.cn/)
                                                                                    Announcement on Resolutions of the 18th
 The 18th Meeting of the                                                            Meeting of the 10th Board of Directors
                                                                                    (http://www.cninfo.com.cn/)
 The 19th Meeting of the                                                            Announcement on Resolutions of the 19th
                                                                            (Announcement No. 2022-29)
                                                                            (http://www.cninfo.com.cn/)
                                                                            Announcement on Resolutions of the 20th
The 20th Meeting of the                                                     Meeting of the 10th Board of Directors
                                                                            (http://www.cninfo.com.cn/)
                                                                            Announcement on Resolutions of the 21st
The 21st Meeting of the                                                     Meeting of the 10th Board of Directors
                                                                            (http://www.cninfo.com.cn/)
                                                                            Announcement on Resolutions of the
The 22nd Meeting of the                                                     22nd Meeting of the 10th Board of
                                                                            (http://www.cninfo.com.cn/)
                                                                            Announcement on Resolutions of the 23rd
The 23rd Meeting of the                                                     Meeting of the 10th Board of Directors
                                                                            (http://www.cninfo.com.cn/)
The 24th Meeting of the
                                                                            Announcement on Resolutions of the 25th
The 25th Meeting of the                                                     Meeting of the 10th Board of Directors
                                                                            (http://www.cninfo.com.cn/)
                                                                            Announcement on Resolutions of the 26th
The 26th Meeting of the                                                     Meeting of the 10th Board of Directors
                                                                            (http://www.cninfo.com.cn/)
                    Attendance of director in board meeting and general meeting of shareholders
               Attendance                       Attendance                                                Attendance
                                                              Attendance                    Absence for
               due in the      Attendance            by                                                    at general
                                                               through a     Absence             two
  Director      reporting        on site       telecommun                                                  meeting of
                                                                  proxy       (times)       consecutive
                  period         (times)          ication                                                 shareholder
                                                                 (times)                       times
                 (times)                          (times)                                                   s (times)
Liu Miao                  14             6                8             0               0   No                      1
Lin Feng                  14             5                8             1               0   No                      2
Wang
Hongbo
Xiong
Pingting
Liu Junhai                14             6                8             0               0   No                      2
Chen
You’an
Lyu Xianpei               14             6                8             0               0   No                      1
Li Guowang                10             4                6             0               0   No                      1
Qian Xu                   14             2                8             4               0   No                      1
Ying Hanjie               14             5                8             1               0   No                      2
Gong
Zhengying
Shen
Caihong
 Sun
 Dongsheng
Were there any objections on related issues of the Company from director
? Yes ? No
Directors have no objection on related issues of the Company during the reporting period.
Was there any advice from directors adopted by the Company?
? Yes ? No
Explanation about advice of directors is adopted or not adopted by the Company or not
The Company adopted the advice of non-executive directors in respect of safe production, system
improvement, and internal control construction.
the reporting period
                                  Number
                                                                                                    Substantial
                                     of                                                                            Other   Details of
                                             Convene                                                opinion and
  Committee       Members         meetings                              Topics                                    inform   objection
                                              d date                                               recommendat
                                  convene                                                                          ation   s (if any)
                                                                                                        ions
                                     d
                                                        Review of the following proposal:
                                                        The Proposal on Participation in the
                                                        Incorporation of Luzhou Laojiao
                                             February
                                                        Postdoctoral Workstation Technology
                                                        Innovation Co., Ltd. & the Related-
                                                        party Transaction
                                                        Review of the following proposals:
                Liu Miao, Lin                2022       Liquor Sales Co., Ltd.; and 2. The
                Feng, and                               Proposal on the Investment and
                Wang Hongbo                             Wealth Management with Own Funds
                                                                                                   Approved, to
                (Sun                                    Review of the following proposal:
                                                                                                   be submitted
                Dongsheng                               The Proposal on the Implementation of
 The Strategy                                7 July                                                to the Board
                has ceased to            6              Luzhou Laojiao Technical Upgrade
 Committee                                   2022                                                  of Directors
                be a member                             Project of Intelligent Brewing (Phase I)
                                                                                                   for further
                of the Strategy                         by Subsidiary
                                                                                                   review
                Committee                               Review of the following proposal:
                since 29 June                28 July    The Proposal on the Incorporation of
                                                        Development Co., Ltd.
                                                        Review of the following proposal:
                                                        The Proposal on the Incorporation of
                                             October
                                                        Luzhou Laojiao International Trade
                                                        (Hainan) Co., Ltd.
                                                        Review of the following proposal:
                                                        The Proposal on the De-registration of
                                             Novemb
                                                        Luzhou Baonuo Biotechnology Co.,
                                             er 2022
                                                        Ltd.
                Liu Junhai,                             Review of the following proposals:         Approved, to
 The
                Lyu Xianpei                  2 June     1. The Proposal on the Review of the       be submitted
 Nomination                              2
                and Xiong                    2022       Qualifications of Mr. Li Guowang as a      to the Board
 Committee
                Pingting (Shen                          Non-executive Director Candidate; and      of Directors
                 Caihong has                           2. The Proposal on the Review of the     for further
                 ceased to be a                        Qualifications of Ms. Gong Zhengying     review
                 member of the                         as a Non-employee Director Candidate
                 Nomination
                 Committee
                                           Novemb      The Proposal on the Recommendation
                 since 31 May
                                           er 2022     of Secretary of the Board
                                                       Review of the following proposals: 1.
                                                       The 2021 Annual Financial Report; 2.
                                                       The 2021 Internal Control Self-
                                                       assessment Report; 3. The Summary
                                                       Report of the 2021 Annual Audit of the
                                                       Audit Committee under the Board of
                                                       Directors; 4. The Work Plan for the      Approved, to
                 Lyu Xianpei,
 The Audit                                             2022 Report                              to the Board
                 Chen You’an           4
 Committee                                             Review of the following proposal: The    of Directors
                 and Qian Xu               19 May
                                                       Proposal on the Re-appointment of        for further
                                                       CPA Firm                                 review
                                           August      Proposal on the 2022 Interim Financial
                                                       Review of the following proposal: The
                                           October
                                                       Q3 2022 Report
                 Chen You’an,                          Review of the following proposals: 1.
                 Ying Hanjie,                          The Proposal on the Amendments to
                 and Li                                the Specific Management Rules of
                 Guowang                               Luzhou Laojiao Co., Ltd. for
                 (Sun                                  Remunerations of Senior Management       Approved, to
 The             Dongsheng                             and the Specific Management Rules of     be submitted
 Remuneration    has ceased to             10 June     Luzhou Laojiao Co., Ltd. for             to the Board
 and Appraisal   be a member           1   2022        Performance Appraisal of Senior          of Directors
 Committee       of the                                Management; 2. The Proposal on the       for further
                 Remuneration                          Review of the Remunerations of the       review
                 and Appraisal                         Management for 2020; and 3. The
                 Committee                             Proposal on the Prepayment of the
                 since 29 June                         2021 Annual Salaries for the
Were there any risks to the Company identified by the board of supervisors when performing its duties
during the reporting period
? Yes ? No
The board of supervisors has no objection during the reporting period.
 Number of in-service staff of the parent company at the
 end of the reporting period
 Number of in-service staff of main subsidiaries at the end
 of the reporting period
 Total number of in-service staff at the end of the reporting
 period
 Total number of staff with remuneration in the period                                                               3,605
 Number of retirees to whom the Company or its main
 subsidiaries need to pay retirement pension
                                                          Functions
                    Function by category                                                  Number of staff
 Production staff                                                                                                    1,323
 Sales staff                                                                                                           924
 R&D staff                                                                                                  734
 Financial staff                                                                                            100
 Administrative staff                                                                                       524
                          Total                                                                           3,605
                                             Educational backgrounds
            Educational background by category                              Number of staff
 Senior high school and below                                                                               510
 Junior college                                                                                             956
 Bachelor                                                                                                 1,759
 Master                                                                                                     369
 Doctor                                                                                                      11
                           Total                                                                          3,605
In 2022, the Company implemented the distribution policy of "sharing benefits, paying for losses,
classification and setting, and long-term policy effects", continuously strengthened the digital
assessment, linked individual performance with organizational performance, and highlighted the
distribution according to performance. The Company implemented the post rating wage system and
strengthened the performance management of all employees. According to the following principles:
Link individual performance with organizational performance: The increase of wages is linked to the
increase of the Company's operating performance and profit growth; Under the same caliber, the
proportion of increase in salaries shall not exceed the proportion of increase in performance and profit
growth.
Salary and its changes based on position, ability and performance: The salary of employee shall be
determined by position and the depth of their expertise. The salary shall be adjusted accordingly
when the position, ability and performance change. Performance orientation, bonus and forfeit:
Performance assessment is conducted according to the actual contributions of employees, and the
salary distribution is inclined to the employees with excellent performance.
The principle of equal wage negotiation: Abide by the principles that both sides of labor and capital
agrees in collective negotiation, so as to realize the unity of benefit and fairness.
In 2022, based on the staff career development system and job qualification standards, the Company
implemented a targeted training system comprising different levels to meet demands for staff ability
improvement for different positions and different levels.
Sail Program: The “Sail Program” training was conducted for new employees hired through campus
and social recruitment and for other grassroots employees. The purpose was to enhance new
employees’ understanding and recognition of the Company’s core values, familiarize them with the
Company’s production and operation statuses and their work procedures, and allow them to
accumulate professional knowledge and skills and improve their ability to work independently.
Dive Program: The “Dive Program” training was conducted for general employees on specialized
lines. The purpose was to strengthen their specialty knowledge and ability to solve specialty problems,
enhance their basic management skills, improve their competency and raise their performance. Due
to the huge coverage of trainees across different business segments, the training was conducted in
the form of sub-programs, such as “Happy Learning Sub-program” and “Excellent Frontline Manager
Sub-program” to provide specialty knowledge and skills of different systems.
Voyage Program: The “Voyage Program” training was conducted for key personnel with a systematic
design of three-year development plans and a focus on three themes, including “self-management”,
“work management” and “interpersonal management”. The purpose was to enrich employees’
knowledge on corporate business management, improve their knowledge structure, and enhance
their strategic understanding and abilities of work and team management.
Steering Program: The “Steering Program” training was conducted for middle management personnel
and department experts in the form of online and offline combined, “coming in” and “going out”
combined and ability enhancement and work style building combined. Through the learning of
advanced management concepts and practices, the training aimed to drive employees to broaden
their mind, expand their vision, strengthen their leadership skills and enhance their level of corporate
management.
In addition, in terms of professional talents training, in combination with the strategic needs of talent
development and relevant policies of provinces and cities, the Company actively carries out the work
of staff title appraisal, skill rating, recommendation and assessment and so on.
? Applicable ? N/A
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, in
the reporting period.
? Applicable ? N/A
According to the plan for profit distribution for 2021 deliberated and approved by 2021 annual meeting
of shareholders, based on its total of 1,471,615,076 shares, the Company distributed a cash dividend
of CNY 32.44 (tax inclusive) per 10 shares to all shareholders. The distribution plan was implemented
on 26 August 2022.
                                A special statement of the policy of cash dividends
Whether it meets the requirements of the articles
of corporation or the resolution of shareholders'               Yes
meeting:
Whether the standard and proportion of dividends
                                                 Yes
are clear:
Whether the relevant decision-making process and
                                                 Yes
systems are complete:
Whether non-executive directors perform their
                                                                Yes
duties and play their due role:
Whether the minority shareholders have the
opportunity to fully express their opinions and
                                                                Yes
appeals and whether their legitimate rights and
interests have been adequately protected:
Whether the conditions and procedures are
                                                                The Company's cash dividend policy has not been
compliant and transparent and whether the cash
                                                                adjusted or changed in the reporting period
dividend policy is adjusted or changed:
The Company made a profit in the reporting period and the profit distributable to shareholders of the
Company was positive, but it did not put forward a preliminary plan for cash dividend distribution to
shareholders.
? Applicable ? N/A
Preliminary plan for profit distribution and converting capital reserves into share capital for the
reporting period
? Applicable ? N/A
 Bonus shares for every 10 shares (share)                                                                                      0
 Dividends for every 10 shares (CNY) (tax included)                                                                        42.25
 Total shares as the basis for the preliminary plan for profit
 distribution (share)
 Total cash dividends (CNY) (tax included)                                                                   6,219,148,324.03
 Cash dividends in other forms (e.g. repurchase share)                                                                      0.00
 Total cash dividends (CNY) (including other forms)                                                          6,219,148,324.03
 Distributable profit (CNY)                                                                                 26,772,197,213.98
 Percentage of cash dividends in the total distributed profit
 (including other forms)
                                               Information of the cash dividends
 The development stage of the Company is mature and the Company has no major fund expenditure arrangement.
 When the profit distribution is carried out, the proportion of cash dividends in this profit distribution should at least
 reach 80%.
             Details of preliminary plan for profit distribution and converting capital reserves into share capital
ownership plan or other incentive measures for employees
? Applicable ? N/A
A. On 26 September 2021, relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were approved at the Seventh Meeting
of the 10th Board of Directors and the Third Meeting of the 10th Board of Supervisors of the Company,
respectively.
B. On 2 December 2021, the Company received the Approval of Luzhou State-owned Assets
Supervision and Administration Commission on the Implementation of the Second Phase of the Equity
Incentive Plan for Listed Companies by Luzhou Laojiao Co., Ltd. (L.G.Z.K.P. [2021] No. 62) from the
Luzhou State-owned Assets Supervision and Administration Commission, which approved in principle
to the implementation of the Restricted Share Incentive Plan by the Company.
C. On 24 December 2021, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees of the 2021 Restricted Share
Incentive Plan.
D. On 29 December 2021, the relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were approved at the First
Extraordinary General Meeting of Shareholders of 2021. Meanwhile, a self-inspection on the trading of
the Company's shares by insiders of the Incentive Plan and the proposed awardees was conducted,
and the Self-Inspection Report on the Trading of the Company's Shares by Insiders and Awardees in
the 2021 Restricted Share Incentive Plan was disclosed.
E. On 29 December 2021, the Company held the 12th Meeting of the 10th Board of Directors and the
Sixth Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant
of Restricted Shares to Awardees respectively. The independent directors consented to the relevant
matters.
F. On 21 February 2022, the Company disclosed the Announcement on the Completion of Registration
of Restricted Share Grant, completed the registration of the first grant of restricted shares. Upon the
registration of the grant, 6,862,600 restricted shares were granted to 437 objects, the grant price was
CNY 92.71 per share and the listing date was 22 February 2022.
G. On 25 July 2022, the Company held the 18th Meeting of the 10th Board of Directors and the Ninth
Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.
H. On 4 August 2022, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
I. On 2 September 2022, the Company held the 22nd Meeting of the 10th Board of Directors and the
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Adjustment of the Granted Price of Reserved Restricted Shares of 2021 Restricted Share Incentive
Plan were reviewed and approved respectively. In accordance with the relevant provisions of the
incentive plan of the Company and the authorization of the First Extraordinary General Meeting of
Shareholders of 2021, the Board of Directors of the Company agreed to adjust the grant price and
repurchase price of the reserved restricted shares under the incentive plan from CNY 92.71 per share
to CNY 89.466 per share in view of the implementation of the Company's profit distribution plan for
 J. On 3 September 2022, the Company disclosed the Announcement on the Repurchase and
 Cancellation of Some Restricted Shares to Reduce Registered Capital and Notice to Creditors. By the
 expiration of the declaring period, the Company had not received any declaration from the relevant
 creditors for early payout of debts or provision of guarantee.
 K. On 26 September 2022, the Company disclosed the Announcement on the Completion of the
 Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
 Plan. Upon the registration of the grant of the reserved restricted shares, 342,334 restricted shares
 were granted to 46 objects, the grant price was CNY 89.466 per share and the listing date was 28
 September 2022.
 L. On 29 November 2022, the Company disclosed the Announcement on the Completion of the
 Repurchase and Cancellation of Some Restricted Shares. The Company proposed to repurchase and
 cancel a total of 62,310 restricted shares granted but not lifted from restricted sales. As at 29 November
 M. On 29 December 2022, the Company held the 26th Meeting of the 10th Board of Directors and the
 Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
 matter.
 N. On 13 January 2023, the Board of Supervisors of the Company issued the review opinion, i.e.,
 Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
 Shares of the 2021 Restricted Share Incentive Plan.
 O. On 16 February 2023, the Company disclosed the Announcement on the Completion of the
 Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
 Plan. Upon the registration of the grant of the reserved restricted shares, 92,669 restricted shares were
 granted to 17 objects, the grant price was CNY 89.466 per share and the listing date was 17 February
 Equity incentives for directors and senior management
 ? Applicable ? N/A
                                                                                                                              Unit: share
                                                                  Exerci
                                                                     se
                                                                   price                        Restric
                          Stock                                                       Market                                             Restric
                                    Stock     Exerci    Exerci      for     Stock                  ted              Restric
                          option                                                       price                                   Grant       ted
                                    option     sable     sed       exerci   option              shares    Unlock      ted
                          s held                                                       at the                                  price     shares
                                       s      share     share       sed     s held              held at      ed     shares
                          at the                                                      end of                                   of the    held at
                                    grante    option    option     share    at the                 the    shares    grante
                           begin                                                        the                                   restrict     the
 Name      Office title              d in      s for      s in    option    end of              beginn     in the    d in
                           ning                                                       reporti                                   ed       end of
                                      the       the       the       s in      the                ing of   reporti     the
                          of the                                                        ng                                    shares       the
                                    reporti   reporti   reporti     the     reporti                the       ng     reporti
                          reporti                                                     period                                  (CNY/      reporti
                                      ng        ng        ng      reporti     ng                reporti   period      ng
                            ng                                                        (CNY /                                  share)       ng
                                    period    period    period      ng      period                 ng               period
                          period                                                      share)                                             period
                                                                  period                        period
                                                                  (CNY /
                                                                  share)
           Chairman
Liu Miao   of the              0         0         0         0         0         0         0         0         0         0     92.71     95,900
           board
           Director,
Lin Feng   General             0         0         0         0         0         0         0         0         0         0     92.71     95,900
           manager
           Director,
Wang       Deputy
Hongbo     general             0         0         0         0         0         0         0         0         0         0     92.71     76,700
           manager
             Deputy
Shen
             general          0         0         0          0           0       0            0       0         0          0     92.71    76,700
Caihong
             manager
Xie Hong     CFO              0         0         0          0           0       0            0       0         0          0     92.71    76,700
             Deputy
He
             general          0         0         0          0           0       0            0       0         0          0     92.71    76,700
Cheng
             manager
             Deputy
Zhang
             general          0         0         0          0           0       0            0       0         0          0     92.71    76,700
Suyi
             manager
             Deputy
Xiong
             general          0         0         0          0           0       0            0       0         0          0     92.71    62,800
Pingting
             manager
             Deputy
             general
             manager,
Li Yong                       0         0         0          0           0       0            0       0         0          0     92.71    62,800
             Secretary
             of the
             board
Total            --           0         0         0          0      --           0       --           0         0          0      --
                         The first grant date for the 2021 Restricted Share Incentive Plan was 29 December 2021 and the registration date of the
Notes (if any)           grant was 21 February 2022. Therefore, the above personnel were granted a total of 700,900 new restricted shares
                         during the reporting period.
 Appraisal mechanism and incentives for senior management
 For details, please refer to the 2021 Restricted Share Incentive Plan (Draft) and Summary of Luzhou
 Laojiao Co., Ltd., the Performance Appraisal Methods for the 2021 Restricted Share Incentive Plan of
 Luzhou Laojiao Co., Ltd., and the Management Methods for the 2021 Restricted Share Incentive Plan
 of Luzhou Laojiao Co., Ltd., which have been disclosed by the Company on www.cninfo.com.cn on 26
 September 2021.
 ? Applicable ? N/A
 ? Applicable ? N/A
 during the reporting period
 During the reporting period, in accordance with the Basic Rules for Internal Control of Enterprises, the
 Guidelines of the Shenzhen Stock Exchange for the Internal Control of Listed Companies, relevant laws,
 administrative regulations, normative documents, and other regulatory requirements concerning internal
 control, as well as the reality of the Company, the Company consistently improved and optimized its
 internal control systems and established a well-developed system that covered the corporate
 governance, administrative management, operations management, financial management, human
resources, production guarantee, and safety and environmental protection. Additionally, it strengthened
the implementation, supervision, inspection, feedback, and improvement of the internal control systems
in the operations management to ensure that each internal control system is reasonable, complete, and
effective, thereby promoting the sound, sustainable development of the Company.
□ Yes ? No
reporting period
                                                         Problems                           Solution
                   Consolidation     Consolidation                                                            Subsequent
Company name                                             arising in      Solutions taken implementation
                      plan             progress                                                                solutions
                                                       consolidation                        progress
                                                            N/A
Disclosure date of the internal control
self-assessment report
Disclosure index of the internal control
self-assessment report
Ratio of the total assets of the
appraised entitles to the consolidated                                                                                90.00%
total assets
Ratio of the operating revenues of the
appraised entitles to the consolidated                                                                                90.00%
operating revenue
                                            Deficiencies identification standard
                  Type                                Financial report                         Non-financial report
                                                                                      Material deficiencies:  (1)violate
                                          Material deficiencies: (1)Correction of     national regulations and laws;    (2)
                                          material errors in financial reports that   The Company’s decision-making
                                          have been announced (except                 procedures are unscientific;if there
                                          retroactive adjustment of previous years    is a decision-making misplay, it will
                                          due to changes in policies or other         result in significant deal failure; (3)
                                          objective factors); (2)Material             The substantial loss of managerial or
Qualitative standard                      misstatement of current financial report    technical staff;  (4)Important
                                          which was unrecognized but found by         business lacks system control or
                                          the auditor;(3) Corrupt transaction of      system failure, important economic
                                          senior management;     (4)Audit             business has internal control system
                                          committee and internal audit department     guidance, but with no effective
                                          are not effective to the internal control   operation;  (5)material deficiencies
                                          supervision .                               of internal control cannot be rectified
                                                                                      in time.
                                            of total assets;Misstatement ≥ 5% of
                                            total operating revenue;Misstatement
                                            ≥5% of owner's equity
                                            profits≤Misstatement<5% of gross
                                            profits;0.5% of total                       1. Material deficiencies:loss≥5% of
                                            assets≤Misstatement<1% of total             net profits.
                                            assets;3% of total operating                2. Significant deficiencies:3% of net
Quantitative standard
                                            revenue≤Misstatement<5% of total            profits≤ loss<5% of net profits.
                                            operating revenue;3% of owner's             3. General deficiencies:loss<3% of
                                            equity≤Misstatement<5% of owner's           net profits
                                            equity.
                                            Misstatement<3% of gross profits;
                                            Misstatement<0.5% of total assets;
                                            Misstatement<3% of total operating
                                            revenue;Misstatement<3% of owner's
                                            equity.
Number of financial-report material
deficiencies
Number of non-financial-report material
deficiencies
Number of significant financial-report
related deficiencies
Number of significant Non-financial-
report related deficiencies
? Applicable ? N/A
                                 Deliberation opinion section in the internal control audit report
In accordance with the Basic Rules for Internal Control of Enterprises, the guidelines for assessment, and the other
applicable laws and regulations, the Company has assessed the reasonableness and effectiveness of the design and
operation of internal control as of 31 December 2022. During the reporting period, the Company has established
internal control over businesses and matters within the assessment scope, which were effectively executed. The
internal control objectives have been met, with no material deficiencies. No significant change occurred to the
Company’s internal control during the period from the base day of the internal control assessment report to the issue
day of the report that had a substantial impact on the conclusion of the assessment report.
Disclosure of internal control
                                     Disclosed
audit report
Disclosure date of the internal
control audit report
Disclosure index of the internal
control audit report
Type of the audit’s opinion          Standard unqualified opinion
Significant deficiencies found in
                                  No
the non-financial report
The accounting firm issued the internal control audit report of non-standard opinions
? Yes ? No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
assessment report issued by the board of directors.
? Yes ? No
Campaign on Listed Company Governance
None.
                Section V Environmental and Social Responsibility
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed by
the environmental protection department
? Yes □ No
Policies and industry standards on environmental protection
In the process of production and operation, the Company strictly follow the laws, regulations and
industry standards related to environmental protection, such as the Environmental Protection Law of
the People's Republic of China, Policies and Industry Standards on Environmental Protection,
Regulations on Environmental Protection of Sichuan Province, Law of the People's Republic of China
on Environmental Impact Assessment, Regulations on the Administration of Environmental Protection
of Construction Projects of the People's Republic of China, Law of the People's Republic of China on
Water Pollution Prevention and Control, Standards for the Emission of Water Pollutants in the
Fermented Alcohol and Liquor Industry, Law of the People's Republic of China on Atmospheric
Pollution Prevention and Control, Regulations on the Prevention and Control of Environmental
Pollution by Solid Waste in Sichuan Province, Standard for Pollution Control on Hazardous Waste
Storage, Regulations on Administration of Pollutant Discharge Permits, and Administrative Measures
for the Legal Disclosure of Enterprise Environmental Information.
Environmental protection administrative permission
In 2022, the Company obtained four ecological and environmental administrative permits, including a
total of three permits for change and renewal of discharge permits and one approval of environmental
impact assessment report.
                                 Ecological Environmental Administrative Permission
                                              Review and
  Name of                                                   Acquiring
                 Administrative permit No.     issuance                 Valid term              Permitted matter                Remark
   permit                                                     time
                                               authority
                                                                                     Concentration limit on fugitive emission
 Discharge
                                                                                     of air pollutants: 2.0 mg/Nm3 for non-
  Permit for                                    Luzhou
                                                                                     methane hydrocarbon (NMHC) and 20
   Luzhou                                      Municipal       29
                                                                                     dimensionless for odor concentration.
 Laojiao Co.,    91510500204706718H002V       Ecology and   November     5 years                                                Renewal
                                                                                     The noise emission standard is Class 2
Ltd. (Xiaoshi                                 Environment     2022
                                                                                     in the Emission Standard for Noise of
  Brewery                                       Bureau
                                                                                     Industrial Enterprises at Boundary
    Base)
                                                                                     (GB12348-2008).
Environmental                                   Luzhou                               The project aims at technique
Impact Report                                  Municipal     18 May                  transformation in the premises of the       Newly
                  L.SH.H.J.H. [2022] No. 43                             Permanent
on Flavoring                                  Ecology and     2022                   Brewery Center 7 (formerly Workshop        acquired
    Baijiu                                    Environment                            707) of the Luohan Brewery Eco-Park.
 Production                                           Bureau                                    Main construction content: Dismantle
 Equipment                                                                                      the distillation system in the existing
    and                                                                                         Brewery Center 7, re-layout according
Engineering                                                                                     to the process design, and renovate an
 Application                                                                                    area of approximately 14,000 m2;
 Research                                                                                       dismantle the original equipment in the
 Project of                                                                                     distiller's grains drying area, carryout
  Luzhou                                                                                        civil engineering renovation according
Laojiao Co.,                                                                                    to the process design layout, and
    Ltd.                                                                                        renovate a distiller's grains fermentation
                                                                                                area of approximately 5,000 m2; add
                                                                                                (renovate) a distillation system. After
                                                                                                technique transformation, the capacity
                                                                                                of the Brewery Center 7 (formerly
                                                                                                Workshop 707) was reduced from
                                                                                                Permitted annual discharge limits for
 Discharge                                                                                      wastewater: 400 t/a for chemical
 Permit for                                           Luzhou                                    oxygen demand (COD), 30 t/a for
  Luzhou                                            Municipal          20                       ammonia nitrogen, 50 t/a for total
Laojiao Co.,      91510500204706718H004Q           Ecology and      September      5 years      nitrogen (TN), and 3 t/a for total                 Change
Ltd. (Huangyi                                      Environment        2022                      phosphorus (TP). Permitted noise limits:
Brewery Eco-                                          Bureau                                    Class 3 in the Emission Standard for
   Park)                                                                                        Noise of Industrial Enterprises at
                                                                                                Boundary (GB12348-2008).
                                                                                                The permitted annual emission limits for
                                                                                                the main emission outlet of waste gas
                                                                                                are 3.9 t/a of particulate matter, 11.5 t/a
                                                                                                for sulfur dioxide and 45.4 t/a for
                                                                                                nitrogen oxides; the permitted annual
                                                                                                emission limits for the main emission
 Discharge                                                                                      outlet of waste water are 23.183 t/a for
 Permit for                                           Luzhou                                    COD, 2.017 t/a for ammonia nitrogen,
  Luzhou                                            Municipal          29                       5.796 t/a for TN and 0.232 t/a for TP;
Laojiao Co.,      91510500204706718H001V           Ecology and      November       5 years      the east, west and south sides of the              Renewal
Ltd. (Luohan                                       Environment        2022                      noise factory boundary are subject to
Brewery Eco-                                          Bureau                                    the Class 2 standard in the Emission
   Park)                                                                                        Standard for Noise of Industrial
                                                                                                Enterprises at Boundary (GB12348-
                                                                                                the Class 4 standard limit in the
                                                                                                Emission Standard for Noise of
                                                                                                Industrial Enterprises at Boundary
                                                                                                (GB12348-2008).
Industry discharge standards and pollutants in producing and operating activities
                 Type of     Name of
                  main         main                      Number       Distributi   Emission
                                                                                                Pollution                    Approved         Excessiv
 Company        pollutant    pollutant    Discharge         of           on of     concentra                    Total
                                                                                                discharge                      total              e
  name            and          and           type        discharg     discharge    tion/inten                  emission
                                                                                                standard                     emission         discharge
                particular   particular                  e outlet       outlet        sity
                pollutant    pollutant
 Luzhou                                                               Luohan
                Water                     Direct                                   22.60mg/
 Laojiao                     COD                        1             Brewery                   50 mg/L       9.466t/a       23.183t/a        No
 Co., Ltd.      pollutant                 discharge                                m3
                                                                      Eco-Park
 Luzhou         Water                     Direct                      Luohan       0.149mg/
                             Ammonia
 Laojiao                                                1                                       5 mg/L        0.062t/a       2.017t/a         No
                pollutant    nitrogen     discharge                   Brewery      L
 Co., Ltd.
                                                     Eco-Park
 Luzhou                                              Luohan
             Water       Total       Direct                     5.976
 Laojiao                                         1   Brewery                  15 mg/L    2.503t/a    5.796t/a    No
             pollutant   nitrogen    discharge                  mg/L
 Co., Ltd.
                                                     Eco-Park
 Luzhou                  Total                       Luohan
             Water                   Direct                     0.090mg/
 Laojiao                 phosphor                1   Brewery                  0.5mg/L    0.038t/a    0.232t/a    No
 Co., Ltd.   pollutant   us          discharge                  L
                                                     Eco-Park
 Luzhou                                              Luohan
             Air                     Organized                  2.991mg/
 Laojiao                 PM                      2   Brewery                  20mg/m3    0.0003      2.8 t/a     No
 Co., Ltd.   pollutant               discharge                  m3
                                                     Eco-Park
 Luzhou                                              Luohan
             Air         Sulfur      Organized                  0.2715m                  0.0001
 Laojiao                                         2   Brewery                  50mg/m3                4.7 t/a     No
             pollutant   dioxide     discharge                  g/m3                     t/a
 Co., Ltd.
                                                     Eco-Park
 Luzhou                                              Luohan
             Air         Oxynitrid   Organized                  26.683        150mg/m    0.0032
 Laojiao                                         2   Brewery                                         22.1 t/a    No
             pollutant   e           discharge                  mg/m3         3          t/a
 Co., Ltd.
                                                     Eco-Park
 Luzhou                                              Huangyi
             Water                   Indirect                   34.157                   19.184
 Laojiao                 COD                     1   Brewery                  400mg/L                400 t/a     No
 Co., Ltd.   pollutant               discharge                  mg/L                     t/a
                                                     Eco-Park
 Luzhou                                              Huangyi
             Water       Ammonia     Indirect                   0.316
 Laojiao                                         1   Brewery                  30 mg/L    0.148 t/a   30 t/a      No
             pollutant   nitrogen    discharge                  mg/L
 Co., Ltd.
                                                     Eco-Park
 Luzhou                                              Huangyi
             Water       Total       Indirect                   11.478
 Laojiao                                         1   Brewery                  50 mg/L    6.890 t/a   50 t/a      No
             pollutant   nitrogen    discharge                  mg/L
 Co., Ltd.
                                                     Eco-Park
 Luzhou                  Total                       Huangyi
             Water                   Indirect                   0.515
 Laojiao                 phosphor                1   Brewery                  3 mg/L     0.316 t/a   3 t/a       No
 Co., Ltd.   pollutant   us          discharge                  mg/L
                                                     Eco-Park
 Luzhou                                              Huangyi
 Laojiao     Air         Smoke       Organized                  0.859
 Brewing                 and dust                2   Brewery                  5 mg/m3    0.579 t/a   5.64t/a     No
             pollutant               discharge                  mg/m3
 Co., Ltd.                                           Eco-Park
 Luzhou                                              Huangyi
 Laojiao     Air                     Organized                  1.090
                         PM                      1   Brewery                  20 mg/m3   0.027 t/a   3t/a        No
 Brewing     pollutant               discharge                  mg/m3
 Co., Ltd.                                           Eco-Park
 Luzhou                                              Huangyi
 Laojiao     Air         Sulfur      Organized                  0.530
 Brewing                 dioxide                 2   Brewery                  35 mg/m3   0.331 t/a   16.68 t/a   No
             pollutant               discharge                  mg/m3
 Co., Ltd.                                           Eco-Park
 Luzhou                                              Huangyi
 Laojiao     Air         Sulfur      Organized                  0.766
 Brewing                 dioxide                 1   Brewery                  50 mg/m3   0.010 t/a   2.2 t/a     No
             pollutant               discharge                  mg/m3
 Co., Ltd.                                           Eco-Park
 Luzhou                                              Huangyi
 Laojiao     Air         Oxynitrid   Organized                  39.675        100
 Brewing                 e                       2   Brewery                             27.44 t/a   113.4 t/a   No
             pollutant               discharge                  mg/m3         mg/m3
 Co., Ltd.                                           Eco-Park
 Luzhou                                              Huangyi
 Laojiao     Air         Oxynitrid   Organized                  44.828m       150
 Brewing                 e                       1   Brewery                             1.144 t/a   22.68 t/a   No
             pollutant               discharge                  g/m3          mg/m3
 Co., Ltd.                                           Eco-Park
Treatments of pollutants
A. Waste water: Areas of the Company that produce wastewater are National Cellar, Zaojiaoxiang
Brewery Base, Xiaoshi Brewery Base, Anning Technology Park, Luohan Brewery Eco-Park, and
Huangyi Brewery Eco-Park. In National Cellar, Zaojiaoxiang Brewery Base, Xiaoshi Brewery Base, and
Anning Technology Park, the high-concentration brewing wastewater is temporarily collected in pools
(or tanks), and is later transferred to the wastewater treatment station of Huangyi Brewery Eco-Park by
truck for treatment. The wastewater treatment stations of Luohan Brewery Eco-Park and Huangyi
 Brewery Eco-Park are equipped with online monitors to automatically monitor COD, ammonia nitrogen,
 total phosphorus, total nitrogen, pH value and flows, and transmit the monitoring data to the supervision
 platform of the higher authority. The Company's facilities for prevention and control of wastewater
 pollution are under normal operations, ensuring up-to-standard discharge through general discharging
 outlets. Compared to 2021, in 2022 the Company reduced suspended matter discharge per unit of
 product by 63.25%, COD discharge by 12.44%, total nitrogen discharge by 16.94%, total phosphorus
 discharge by 23.25% and ammonia nitrogen discharge by 60.46%.
 B. Waste gas: Areas of the Company that produce exhaust gas are National Cellar, Zaojiaoxiang
 Brewery Base, Xiaoshi Brewery Base, Luohan Brewery Eco-Park, and Huangyi Brewery Eco-Park. In
 National Cellar Brewery Base, natural gas boilers are used, while in Xiaoshi Brewery Base and
 Zaojiaoxiang Brewery Base, direct-fired bottom boilers are used. The natural gas boilers of Luohan
 Brewery Eco-Park (20t/h, 30t/h) and the natural gas boilers of Huangyi Brewery Eco-Park (20t/h, 75t/h,
 monitoring data to the supervision platform of the higher authority. Low NOx combustion technology is
 adopted for the natural gas boilers. The Company's facilities for prevention and control of exhaust gas
 pollution are under normal operations, ensuring up-to-standard emission of exhaust gas through outlets.
 Compared to 2021, the Company reduced PM discharge per unit of product by 40.22% in 2022.
 Emergency plan for environmental emergencies
 The Company developed the Contingency Plan for Environmental Emergencies (Revision 2020), the
 Environmental Risk Assessment Report and the Emergency Resources Survey Report, and reported to
 the Environmental Emergency Service Center of Luzhou for filing. The Company carried out drills of
 contingency plans, which improved employees' capability to respond to environmental emergencies.
 Environmental self-monitoring plan
                     Monitoring         Implementation                                Monitoring       Monitoring
Monitoring site                                                 Emission limit                                        Monitoring
                      indicator            standard                                   frequency          form
                                                                                                                    compliance rate
                        Odor
                                      Emission Standards       20 (dimensionless)
                    concentration
                                      for Odor Pollutants
                   Hydrogen sulfide                               0.06 mg/m3
  Unorganized                           (GB14554- 93)
                      Ammonia                                     1.5 mg/m3
   monitoring
points 1#-4# for                        Sichuan Emission
the exhaust gas                       Control Standard for
                       NMHC              Volatile Organic          2 mg/m3          1 time/half-year    Manual           100%
emission outlets
   of Luohan                               Compounds
 Brewery Eco-                           (DB51/2377-2017)
      Park                             Integrated Emission
                     Particulate         Standards for Air
                      matters         Pollutants (GB16297-
   Exhaust gas        Ringelman
                                                                        ≤1                              Manual
emission outlets      emittance
                                      Emission Standards
 DA022, DA021       Nitrogen oxide                                150   mg/m3
                                      for Air Pollutants for
  (unused) and        Particulate                                                    1 time/quarter                      100%
                                       Boiler (GB13271-            20 mg/m3
    DA020 of            matters                                                                        Automatic
Luohan Brewery
    Eco-Park        Sulfur dioxide:                                50 mg/m3
  Exhaust gas      Hydrogen sulfide
                                                                        /
 emission outlet                      Emission Standards
                                                                        /
   DA019 of           Ammonia         for Odor Pollutants                           1 time/half-year    Manual           100%
Luohan Brewery                          (GB14554- 93)
   Eco-Park             Odor                                            /
                    concentration                                   27 kg/h
                    Sulfur dioxide:
                                        Integrated Emission           0.77 kg/h
                      Particulate         Standards for Air          120 mg/m3
  Exhaust gas          matters         Pollutants (GB16297-           3.5 kg/h
 emission outlet                               1996)                 550 mg/m3
   DA018 of         Nitrogen oxide                                                       1 time/quarter     Manual           100%
Luohan Brewery
                                        Sichuan Emission
   Eco-Park
                                       Control Standard for
                    Volatile organic                                  60 mg/m3
                                         Volatile Organic
                     compounds                                         3.4 kg/h
                                           Compounds
                                        (DB51/2377-2017)
  Exhaust gas                           Sichuan Emission
 emission outlet                       Control Standard for
    DA017 of            NMHC             Volatile Organic                                1 time/quarter     Manual           100%
Luohan Brewery                             Compounds
    Eco-Park                            (DB51/2377-2017)
  Exhaust gas
emission outlets                        Integrated Emission
 DA001-DA016          Particulate         Standards for Air
   of Luohan           matters         Pollutants (GB16297-
  Brewery Eco-                                 1996)
      Park
                         Flow                                              /
                       PH value                                          6-9
   Main outlet           COD                                          50 mg/L
                                         Standards for the                               1 time/quarter    Automatic
  DW001 of the        Ammonia           Emission of Water              5 mg/L
   wastewater          nitrogen          Pollutants in the
treatment station                                                                                                            100%
                          TP            Fermented Alcohol             0.5 mg/L
    of Luohan
                          TN            and Liquor Industry           15 mg/L
  Brewery Eco-
                                         (GB27931-2011)
       Park          Suspended
                        solids
                    Five-day BOD                                       20mg/L            1 time/month       Manual
                       Chroma                                            20
                     Suspended           Standards for the
  Rainwater                                                           20 mg/L           1 time/month (1
                        solids           Emission of Water
outlets DW002-                                                                           time/quarter in
                                          Pollutants in the
   DW006 of                                                                                case of no       Manual           100%
                                        Fermented Alcohol
Luohan Brewery           COD                                          50 mg/L             abnormalities
                                        and Liquor Industry
   Eco-Park                                                                                monitored)
                                          (GB2731-2011)
Noise monitoring                        Emission Standard
 points 1-4# at                        for Noise of Industrial
                                                                 Daytime: 60 dB (A);
the boundary of     Boundary noise         Enterprises at                                1 time/quarter     Manual           100%
                                                                 nighttime: 50 dB (A)
Luohan Brewery                         Boundary (GB12348-
    Eco-Park                                   2008)
   Circulating
 cooling water
outlet DW002 of
   the Energy       PH value, COD,
                                                  /                        /             1 time/quarter     Manual           100%
    Center of             TP
Sichuan Luzhou
Baijiu Industrial
      Park
                       PH value                                          6-9
                    Total dissolved
                                                                           /
  Wastewater         solids (TDS)
outlet DW001 of      Suspended
                                           Integrated                 140 mg/L
   the Energy            solids
                                           Wastewater
    Center of       Five-day BOD                                      80 mg/L            1 time/quarter     Manual           100%
                                       Discharge Standard
Sichuan Luzhou            COD                                         400 mg/L
                                         (GB8978-1996)
Baijiu Industrial          TN                                         50 mg/L
      Park             Ammonia
                        nitrogen
                           TP                                          3 mg/L
 Boiler exhaust       Ringelman
                                                                           ≤1                               Manual
   gas vents          emittance
                                       Emission Standard of
 DA001-DA002        Nitrogen oxide                                   100 mg/m3
                                        Air Pollutants for
 of the Energy            Soot                                        5 mg/m3
                                         Thermal Power                                   1 time/quarter                      100%
   Center of
                                        Plants (GB13223-                                                   Automatic
Sichuan Luzhou
                    Sulfur dioxide:           2011)                   35 mg/m3
Baijiu Industrial
      Park
 Boiler exhaust       Ringelman        Emission Standards
                                                                           ≤1            1 time/quarter     Manual
gas vent DA003        emittance        for Air Pollutants for                                                                100%
 of the Energy      Nitrogen oxide      Boiler (GB13271-             150   mg/m3                           Automatic
   Center of           Particulate             2014)
Sichuan Luzhou          matters
Baijiu Industrial
                     Sulfur dioxide:                                  50 mg/m3
      Park
   Rainwater          Suspended          Standards for the
outlets DW004-          solids          Emission of Water
                                                                                         time/quarter in
   DW010 of                              Pollutants in the
                                                                                           case of no       Manual           100%
    Huangyi                             Fermented Alcohol
                         COD                                          100 mg/L            abnormalities
 Brewery Eco-                           and Liquor Industry
                                                                                           monitored)
      Park                                (GB2731-2011)
                         Odor
                                       Emission Standards        20 (dimensionless)
                     concentration
                                       for Odor Pollutants
                    Hydrogen sulfide                                 0.06 mg/m3
                                         (GB14554-93)
  Unorganized          Ammonia                                       1.5 mg/m3
   monitoring                            Sichuan Emission
 points 1#-4# at                       Control Standard for
the boundary of          NMHC             Volatile Organic            2 mg/m3            1 time/quarter     Manual           100%
    Huangyi                                 Compounds
  Brewery Eco-                           (DB51/2377-2017)
      Park                              Integrated Emission
                       Particulate        Standards for Air
                        matters        Pollutants (GB16297-
  DA041 and              Odor                                           2,000
   DA042 of          concentration     Emission Standards          (dimensionless)
   Huangyi             Ammonia         for Odor Pollutants             4.9 kg/h         1 time/half-year    Manual           100%
 Brewery Eco-                            (GB14554- 93)
     Park           Hydrogen sulfide                                  0.33 kg/h
DA087, DA096-
                                        Sichuan Emission
  DA097 and
                                       Control Standard for
DA072-DA075                                                           60 mg/m3
                         NMHC            Volatile Organic                                1 time/quarter     Manual           100%
  of Huangyi                                                          4.76 kg/h
                                           Compounds
 Brewery Eco-
                                        (DB51/2377-2017)
     Park
DA034-DA040,
DA043-DA070,
DA076-DA086                             Integrated Emission
 and DA088-            Particulate        Standards for Air
   DA095 of             matters        Pollutants (GB16297-
   Huangyi                                     1996)
 Brewery Eco-
     Park
                          Flow                                            /
                        PH value                                        6-9
                          COD                                         400 mg/L
  Main outlet of                         Standards for the                               1 time/quarter    Automatic
                       Ammonia
 the wastewater                         Emission of Water             30 mg/L
                        nitrogen
treatment station                        Pollutants in the
                           TP                                          3 mg/L                                                100%
   of Huangyi                           Fermented Alcohol
  Brewery Eco-             TN           and Liquor Industry           50 mg/L
      Park            Suspended           (GB2731-2011)               140 mg/L
                         solids
                     Five-day BOD                                     80 mg/L
                        Chroma                                          80
Noise monitoring
                                        Emission Standard
 points 1-4# at
                                       for Noise of Industrial
the boundary of                                                  Daytime: 65 dB (A);
                    Boundary noise         Enterprises at                                1 time/quarter     Manual           100%
    Huangyi                                                      nighttime: 55 dB (A)
                                       Boundary (GB12348-
 Brewery Eco-
      Park
                                       Emission Standards
                         Odor
                                       for Odor Pollutants               20
 Unorganized         concentration
                                          (GB14554- 93)
   monitoring
                                        Sichuan Emission
points 1#-7# at                                                                         1 time/half-year    Manual           100%
                                       Control Standard for
Xiaoshi Brewery
     Base                NMHC            Volatile Organic            2.0 mg/m3
                                           Compounds
                                        (DB51/2377-2017)
 Boiler exhaust        Ringelman
                                       Emission Standards                ≤1
   gas vents           emittance
                                       for Air Pollutants for                             1 time/year
 DA001-DA010              Soot                                       20 mg/m3                               Manual           100%
                                        Boiler (GB13271-
   of Xiaoshi        Sulfur dioxide:                                 50 mg/m3
 Brewery Base        Nitrogen oxide                                  150 mg/m3           1 time/month
Noise monitoring                        Emission Standard
  points at the                        for Noise of Industrial
  boundary of       Boundary noise         Enterprises at        Daytime: 60 dB (A)      1 time/quarter     Manual           100%
Xiaoshi Brewery                        Boundary (GB12348-
      Base                                     2008)
                                     Emission Standards
 Unorganized           Odor
                                     for Odor Pollutants               20
  monitoring       concentration
                                        (GB14554- 93)
   points of
                                      Sichuan Emission
National Cellar                                                                        1 time/half-year        Manual           100%
                                     Control Standard for
     and
 Zaojiaoxiang         NMHC             Volatile Organic            2.0 mg/m3
Brewery Bases                            Compounds
                                      (DB51/2377-2017)
 Boiler exhaust     Ringelman
                                                                       ≤1
   gas vents         emittance
                                     Emission Standards                                   1 time/year
 DA001-DA003            Soot                                       20 mg/m3
                                     for Air Pollutants for
   of National     Sulfur dioxide:                                 50 mg/m3                                    Manual           100%
                                      Boiler (GB13271-
   Cellar and
  Zaojiaoxiang     Nitrogen oxide                                 150 mg/m3               1 time/month
 Brewery Bases
Noise monitoring
  points at the                       Emission Standard
  boundary of                        for Noise of Industrial
 National Cellar   Boundary noise         Enterprises at       Daytime: 60 dB (A)       1 time/quarter         Manual           100%
       and                             Boundary (Class 4
  Zaojiaoxiang                         for street frontage)
 Brewery Bases
Rainwater outlet    Suspended          Standards for the
   DW003 of           solids          Emission of Water
                                                                                        time/quarter in
 National Cellar                       Pollutants in the
                                                                                          case of no           Manual           100%
       and                            Fermented Alcohol
                       COD                                          50 mg/L              abnormalities
  Zaojiaoxiang                        and Liquor Industry
                                                                                          monitored)
 Brewery Bases                          (GB2731-2011)
 Input in environmental management and protection and the payment of environmental protection-
 related taxes
                                                                                                                            Unit: CNY
                                                                                Amount of tax               Actual
             Taxable pollutant                     Taxable pollutant                                                     Tax deduction
                                                                                  payable                 amount paid
    Suspended solids, COD, ammonia
                                                     Water pollutant                36,754.91              367,54.91           0.00
  nitrogen (NH3-N), TP (calculated as P)
      Ammonia, nitrogen oxides, sulfur
                                                       Air pollutant                137,932.77            137,932.77           0.00
      dioxide, hydrogen sulphide, soot
 Measures taken to reduce carbon emissions during the reporting period and the results
 ? Applicable ? N/A
 Luzhou Laojiao Huangyi Brewery Eco-Park is a green and low-carbon brewery ecological park with the
 largest scale of solid-state baijiu brewing, the largest capacity of leaven and the highest level of
 automation and intelligence in the industry. The Company has successfully developed industry-leading
 automated baijiu brewing equipment, and realized the fully automated operation of the entire brewing
 process. A set of green, low-carbon, energy-saving and environment-friendly production, operation and
 development mode has been developed using green energy-saving technologies, automated control
 means and digital management platforms, reducing carbon dioxide emissions. The Company has
 developed a unique digital, green and low-carbon development path of Luzhou Laojiao.
 Administrative penalties received in the reporting period due to environmental issues
   The Company or           Reason for                                                             Impact on the
                                              Regulation violated             Penalties                                 Rectification
      subsidiary             penalties                                                               Company
                                                                   N/A
 Other information about environmental protection that should be disclosed
 N/A
Other information about environment protection
N/A
See the 2022 Social Responsibility Report disclosed on the same day with this Annual Report.
In 2022, the Company thoroughly practiced General Secretary Mr. Xi Jinping's important instructions on
consolidating and expanding the achievements of poverty alleviation and rural revitalization,
implemented the requirements of the "four no-removals" and the decisions and deployments of the
central, provincial and municipal committees, and strove to build model and demonstration areas for
rural revitalization by fully leveraging its strengths in terms of capital, technology, talent and
management in accordance with the general requirements of "prosperous industry, livable ecology,
civilized rural style, effective governance and well-off life" to promote its sustainable development.
A. Intensified the leadership of organizations and fulfill the assistance responsibility. The Company
further improved its political stance, assumed the social responsibility of a state-owned enterprise, and
provided assistance and fulfilled its responsibilities in poverty alleviation. Additionally, to fulfill its
assistance responsibility, the Company promoted the cooperation between its Party branches and
assisted villages as well as the training of cadres of the two village Party branches and team members
of the Company stationed in the two villages.
B. Promoted the upgrading of industries and income increase through poverty alleviation. Giving full
play to its advantages in resources and platforms, the Company trained more technological, sales, and
management talent in Hongyuan County to enlarge the group of "forgoers in getting rich", thereby
encouraging the developed groups to assist backward ones. Besides, it built a brand image for yak
products in Hongyuan County and increased the inputs in the development of derivatives, so as to
enhance the visibility and reputation and lend constant impetus to the development of the assisted
villages.
C. Established a long-term mechanism to facilitate rural revitalization. The Company focused on the
standard that rural poor people are free from worries over food and clothing and have access to
compulsory education, basic medical services, and safe housing, strengthened dynamic monitoring of
any trends indicating a return to poverty, and consistently promoted the development of the assisted
villages to share the fruits of poverty alleviation with villagers. Meanwhile, measures including "external
support and self-motivation" and "building up self-belief and providing access to education" were
incorporated into the long-term mechanism for rural revitalization.
In 2022, the Company spent a total of CNY 2.5515 million to implement seven projects with high quality,
such as infrastructure construction, industrial support, self-belief and education support, and Pillars
Project, effectively helping villages to strengthen their special industries, optimize education and culture,
and solve development problems with practical strategies and real measures to seek true results. In
recent years, the Company has won honors and awards, including "The Most Charitable Model" of the
Third Sichuan Charity Award, the "Outstanding Contribution Award for Social Poverty Alleviation" of
Luzhou City and the "Advanced Group for Paired Assistance" in Sichuan Province.
A. Organizational guarantee continued to be strengthened and the assistance responsibility was fulfilled.
In 2022, the Company continued to fulfill its assistance responsibility by holding two party committee
meetings to study paired assistance, carrying out four special exchange seminars, and leading
members of the Company's leadership team to the village four times. The steering group stationed in
the village to carry out field research for six days, and selected and assigned two full-time cadres with
outstanding ability for paired assistance. Under the guidance of the Company's Rural Revitalization
Steering Group, cadres stationed in the village fully collaborated with the two village Party branches to
provide organizational guarantee for the comprehensive promotion of rural revitalization.
B. Upgrade industrial assistance and increase income through production and marketing linkage. The
"self-motivation-based" assistance model was continuously deepened. Based on the construction of the
paddy field fish farming base in Xiangtian Village, the production and operation model of "Party Branch
+ Collective Company + Base + Farmers" was continued to achieve "dual-purpose water, multiple
harvest from one field, increased food volume and efficiency, and win-win situation for food and fishery",
and promote the scale-based development of the rice and fishery industry, integration of ecology and
rural landscape. The Company adopted a village-enterprise cooperation approach to help Xiangtian
Village sell special agricultural products, totaling CNY 210,000. In the Guntang Village, the Company
coordinated the village and a professional ranch operating company to build a model ranch, and
developed an integrated production and marketing chain of "production by farmers in Guntang Village -
processing by the agricultural product company - sales by Luzhou Laojiao". The Company used its e-
commerce platform, the party group service center and other online and offline vehicles to widely
publicize the products assisted, expanded the unique advantages of the Damaiwa yak as a
geographical certified breed, and generated CNY 1,135,400 through activities such as "Creating Wealth
through Sales" and "purchase instead of donation". In addition, the Company created a collective
economic income model of "guaranteed income + profit dividends", incorporated 101 households out of
poverty into the income chain, allowed the collective and farmers to get cash for breeding, capital for
shares buy-in and funds for development, and donated 10% of sales to the collective economy of
Guntang Village, which effectively opened up the "last mile" of the problem with the production and
marketing of poverty-alleviating products, and boosted the production and marketing linkage for rural
revitalization to achieve substantial results.
C. Consistently assist farmers in building up self-belief and provide them with necessary education to
stimulate the self-motivation of villages. Adhering to the idea of "teaching people how to fish rather than
just giving them fish" and aiming to cultivate "four" new types of farmers, the Company used farmers'
night schools, special meetings, "Volunteer Activities for the Country People" and other carriers to carry
out more than 20 lectures on agricultural knowledge and farming techniques to help farmers improve
their scientific and cultural quality. By organizing unemployed youths and stable households out of
poverty to participate in e-commerce training, the Company successfully cultivated a group of new
farmers and herdsmen who are dedicated to agriculture and know technology, as well as rural
revitalization leaders who are good at business and management, effectively driving villagers to
develop a path and increase income, and promoting the material and spiritual poverty alleviation of the
assisted villages. The education assistance of "Pillars Project" was continuously implemented, and
CNY 170,000 was invested to help 34 fresh high school graduates to attend university. For seven
consecutive years, the Company has carried out the "Voluntary Education" campaign by sending
courses, teaching aids and warmth to encourage students in rural areas to pursue their studies and
prevent poverty from passing down from generation to generation. In addition, the Company organized
warmth-sending and invested CNY 180,000 in Spring Festival care-extension activities, through which it
sent warmth and care to 230 assisted households and more than 350 common farming households and
further aroused their enthusiasm and initiative in getting rich.
D. Take various steps in terms of infrastructure guarantees to solve the urgent and difficult problems of
the masses. The Company's leadership team members and members of the rural revitalization group
visited paired households and poor villagers for research, communicated with villagers face to face and
heart to heart. A total of CNY 50,000 was invested throughout the year to upgrade the electricity supply
to 36 poor households to ensure safe utilization of electricity. The Company solidly promoted the pilot
reform of the rural road management and maintenance system, assisted the government in promoting
the renovation of dangerous rural houses and earthquake resistant retrofitting, and improved the
standards and specifications for rural housing construction. Focusing on the problem of difficult
employment for the masses, the Company made efforts to coordinate multiple resources to secure 96
public service jobs for 96 households out of poverty and low-income families from the assisted village,
effectively solving the difficulties of living of unstable households in poverty alleviation and marginal
households prone to poverty. Besides, the Company effectively fulfilled the caring and assistance
responsibility, promoted the sharing of the fruits of development, and gathered the villagers' strength to
move forward.
E. Continue to cultivate civilized rural style and enhance the overall spirit. The Company's experience
and advantages in brand culture promotion were fully leveraged to promote the civilized rural style
cultivation in an integrated manner. In the past two years, the Company has invested a total of CNY
Guntang Village. Since the square was officially opened and operated in August 2022, a total of more
than ten activities have been carried out to disseminate intangible cultural heritage such as Maiwa
Guozhuang Dance, Maiwa Tibetan Opera and Baiwang Playing and Singing, successfully making
Maiwa Village a popular scenic spot. The Company continuously promoted the formulation of rules and
regulations, collaborated with the assisted villages to develop nine reporting requirements for party
members and cadres to arrange for weddings and funerals, and gave full play to the leading and
demonstration role of party members and cadres to encourage local people to transform outmoded
habits and customs. To continuously expand civilization publicity, based on the characteristics of ethnic
areas, the Company publicized filial piety, civilization, politeness and other traditional virtues through
multiple channels such as regular household publicity by cadres stationed in the village, offline bulletin
boards, WeChat group of villagers, broadcasting and telephone reminders. A total of 12 lectures and
training sessions on grassland fire prevention, health knowledge, prevention of Internet fraud and other
themes were carried out, and villagers were organized to participate in four special activities such as
"moral model lecture", which promoted the mutual integration and promotion of good rural customs and
modern civilization, and the overall spirit of the villagers continued to improve.
In 2023, the Company will strictly implement the arrangement of the central, provincial and municipal
Party committees regarding effectively connecting consolidation and expansion of poverty alleviation
achievements with rural revitalization, coordinate various resources and strengths to improve areas of
weakness, consolidate the achievements, lay the foundation and promote the revitalization, and take
multiple measures to resolutely fulfill the paired assistance responsibility. With greater determination,
stronger commitment and more practical measures, the Company will comprehensively promote new
progress in rural revitalization and new levels in agricultural and rural modernization in assisted villages.
A. Enhance the leadership of party building and consolidate the rural governance. The party branches
of the Company will continue to collaborate with the party branches of the assisted villages, and party
workers will be selected to guide the standard implementation of policies such as the "three meetings
and one lecture" and organizational life meetings. The Company will help villages establish and improve
a rural governance system that combines autonomy, rule of law and moral governance under the
leadership of party organizations, promote grassroots party organizations in rural areas to publicize the
Party's ideas, implement the Party's decisions, lead grassroots governance and unite and mobilize the
masses, regulate the management of village affairs and support rural revitalization.
B. Enhance the building of the assistance team to boost rural revitalization. The Company will strive to
consolidate the responsibilities of the assistance team stationed in the village, continuously improve the
comprehensive ability of the assistance cadres, and build a high-quality and responsible force for rural
revitalization with excellent work style. In addition, it will strongly cooperate with the "two committees" of
the village to consolidate and expand the results of poverty eradication, complete rural revitalization
tasks such as rural industrial development and spiritual civilization construction, and contribute to the
comprehensive rural revitalization from industry, talent, culture and ecology.
C. Enhance consumption assistance and stimulate industrial development momentum. Relying on the
resource and platform advantages, the Company will continue to integrate resources and coordinate
the integrated development of "livestock, production, promotion and sales" around special industries
such as Maiwa yak, continuously enhance product promotion and development, promote the upgrading
of industrial supporting facilities and the improvement of chains, and facilitate the effective
transformation of the "geographical card" into a "treasure for wealth". It will continue to carry out
"purchase instead of donation" campaign, and adopt market-oriented means to sign annual targeted
purchase agreements with the assisted counties for agricultural and sideline products, and bring high-
quality agricultural products onto e-commerce platforms.
D. Deepen employment assistance and enhance blood-creation momentum. In assisted villages, the
Company will establish a ledger of employment assistance for poverty-alleviation and low-income
families, actively help them compete for public service jobs, and organize training on employment skills
such as e-commerce and farming techniques to extensively cultivate training groups of wealthy leaders.
Fully relying on the assistance projects, the Company will support unstable households in poverty
alleviation and marginal households prone to poverty to develop yard economy and work to increase
income according to local conditions. Additionally, the Company will identify, intervene and assist
farmers who are at risk of returning to poverty as early as possible to firmly guard the bottom line of
preventing large-scale return to poverty.
E. Advocate the transformation of outmoded habits and customs and promote a new style of civilization.
The Company will enhance the promotion of the socialist core values and guide party members and
cadres in assisted villages to update their ideology and form a diligent, civilized and healthy lifestyle. In
addition, the Company will cooperate with the assisted villages to continue to carry out activities rich in
rural culture, such as the Guozhuang Dance and equestrian to enrich the spiritual and cultural life of the
villagers and promote the transformation into a harmonious, aggressive and good society.
                           Section VI Significant Events
and acquirer, as well as the Company and other commitment makers fulfilled in
the reporting period or ongoing by the end of this reporting period
? Applicable ? N/A?
No such cases in the reporting period.
projects and the reporting period is still within the forecast period, the Company
shall explain whether the performance of the asset or project reaches the earnings
forecast and reasons
? Applicable ? N/A
its related parties for non-operating purposes
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
standard audit opinion"
? Applicable ? N/A
non-executive directors (if any) regarding the "non-standard audit
opinion" for the reporting period
? Applicable ? N/A
as well as correction of major accounting errors compared to the
financial report for the prior year
? Applicable □ N/A
                                                                                  Approval
           Content and reason for changes in accounting policies                                      Remark
                                                                                 procedure
On 31 December 2021, the Ministry of Finance issued the Interpretation No.
                                                                                              These changes in
                                                                                              accounting policies had
                                                                                              no material impact on
products produced by an enterprise before the fixed assets reach their           N/A
                                                                                              the consolidated
intended useable state or during the research and development process”
                                                                                              financial statements of
and “judgment on loss-making contracts” were carried out by the Company
                                                                                              the Company.
from 1 January 2022.
On 30 November 2022, the Ministry of Finance issued the Interpretation No.
                                                                                              These changes in
                                                                                              accounting policies had
                                                                                              no material impact on
on financial instruments classified as equity instruments by the issuer” and     N/A
                                                                                              the consolidated
“accounting treatment of the revision of cash-settled share-based payment to
                                                                                              financial statements of
equity-settled share-based payment by an enterprise” were carried out by
                                                                                              the Company.
the Company from the date of publication.
compared to the financial report for the prior year
? Applicable □ N/A
Subsidiaries that are newly incorporated into the scope of consolidation in this period
                     Name of subsidiary                                          Reason
   Luzhou Laojiao International Trade (Hainan) Co., Ltd.           Incorporated through investment
     Luzhou Laojiao Technology Innovation Co., Ltd.                Incorporated through investment
Liquidation and cancellation for subsidiaries in this period
                           Name of subsidiary                                                    Reason
      Luzhou Laojiao Bosheng Hengxiang Liquor Sales Co., Ltd.                          Liquidation and cancellation
               Luzhou Laojiao Tourism Culture Co., Ltd.                                Liquidation and cancellation
CPA firm at present
 Name of the domestic CPA firm                                                 Sichuan Huaxin (Group) CPA Firm
 The Company’s payment for the domestic CPA
 firm (CNY 10,000)
 Consecutive years of the audit service provided
 by the domestic CPA firm
 Names of the certified public accountants from
                                                                               Li Wulin, Tang Fangmo, Fan Bo
 the domestic CPA firm
 Consecutive years of the audit service provided                               Li Wulin 3 years, Tang Fangmo 4 years, Fan Bo 1
 by the certified public accountants                                           year
Whether the CPAs firm was changed in the current period
? Yes ? No
Engagement of any CPAs firm for internal control audit, financial advisor or sponsor
? Applicable ? N/A
The Company appointed Sichuan Huaxin (Group) CPA Firm as the internal control auditor for this
year. The remuneration of audit in total paid by the Company was CNY 500 thousand.
? Applicable ? N/A
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A
                               Amount                                                                 Execution of
                                           Whether it forms   Progress in     Trial results and
  Profile of litigation    involved in the                                                            judgment of      Date of       Disclosure
                                            an estimate         litigation  impacts of litigation
     (arbitration)           case (CNY                                                                  litigation    disclosure       index
                                              liability       (arbitration)     (arbitration)
The Company filed a                                                           For the losses that   The Company
lawsuit with ABC                                              The second      the Company           applied to Hunan
Changsha Yingxin                                              trial has       cannot recover        Province Higher
Branch over a deposit                                         been            through criminal      People's Court                 See Section VI
dispute, and the case                                         concluded,      execution             for enforcement 15 October     “Other
has been completed               14,942.5 No                                  procedures, 40%       of the verdict.
                                                              and the case                                           2014          significant
in the first instance of                                      is now at the   shall be borne by     Hunan Province                 events”
Hunan Province                                                stage of        ABC Changsha          Higher People's
Higher People's Court                                         enforcement.    Yingxin Branch,       Court ruled that
and the final trial of                                                        20% shall be borne    Hunan Changsha
the Supreme People's                                                          by ABC Changsha       Intermediate
Court. The case is                                     Hongxin Branch         People’s Court
now at the stage of                                    and the rest shall     should see to the
enforcement.                                           be borne by the        execution of the
                                                       Company itself.        verdict. Upon the
                                                                              enforcement, the
                                                                              banks have paid
                                                                              part of the
                                                                              compensations.
                                                                              The banks have
                                                                              paid part of the
                                                                              compensations.
                                                                              As there was a
                                                                              dispute over the
                                                       ICBC Nanyang
                                                                              verdict, the
                                                       Zhongzhou Branch,
                                                                              Company applied
The Company filed a                                    ICBC Nanyang
                                                                              to Henan
lawsuit with ICBC                                      Branch, and Sanya
                                                                              Province Higher
Nanyang Zhongzhou                                      Rural Commercial
                                                                              People's Court
Branch over a deposit                    The second Bank Hongsha
                                                                              for enforcement
dispute, and the case                    trial has     Branch shall pay
                                                                              of the verdict.
has been completed                       been          compensations of                                      See Section VI
                                                                              Henan Province
in the first instance of                 concluded, CNY 75 million,                             10 January   “Other
Henan Province                           and the case CNY 7.5 million                           2015         significant
                                                                              Court ruled that
Higher People's Court                    is now at the and CNY 6.105                                         events”
                                                                              Nanyang
and the final trial of                   stage of      million respectively
                                                                              Intermediate
the Supreme People's                     enforcement. with the relevant
                                                                              People’s Court
Court. The case is                                     interest to the
                                                                              should see to the
now at the stage of                                    Company, and the
                                                                              execution of the
enforcement.                                           rest of the loss
                                                                              verdict. The case
                                                       shall be borne by
                                                                              is now at the
                                                       the Company itself.
                                                                              stage of
                                                                              enforcement by
                                                                              Nanyang
                                                                              Intermediate
                                                                              People’s Court.
? Applicable ? N/A?
No such cases in the reporting period.
shareholder and actual controller
? Applicable ? N/A
? Applicable ? N/A?
No such cases in the reporting period.
interests
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any of its related parties.
related parties
? Applicable ? N/A?
No related parties made deposits in, received loans or credit from or was involved in any other
finance business with any finance company controlled by the Company.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A
Entrusted assets management during the reporting period
                                                                                               Unit: CNY 10,000
                                                                                                   Impairment
                    Fund source for       Amount of                           Overdue            allowances for
         Type       entrusted assets   entrusted assets   Undue balance      outstanding          the overdue
                     management         management                             amount             outstanding
                                                                                                     amount
 Wealth
 management         Own funds                   20,000            20,000                   0                      0
 product of bank
 Wealth
 management
                    Own funds                  100,000            60,000                   0                      0
 product of
 securities firm
 Wealth
 management
                    Own funds                   40,000            30,000                   0                      0
 product of trust
 company
 Others             Own funds                   20,000                0                    0                      0
 Total                                         180,000           110,000                   0                      0
Particulars of high risk wealth management products with a significant single amount or low security
or poor liquidity
? Applicable ? N/A
Expected inability to recover the principal of entrusted assets management or other circumstances
that may result in impairment
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
The Company disclosed in October 2014 and January 2015 respectively the contract disputes
involving three savings deposits of CNY 500 million in total with banks including ABC Changsha
Yingxin Branch and ICBC Nanyang Zhongzhou Branch. Upon criminal booty recovery, criminal and
civil enforcement, as of 31 December 2022, the Company had recovered a total amount of CNY 371
million for the three disputes.
See details in the Company’s announcements:
Date of announcement      No.                           Catalogue                                 Official website
                                 Announcement of significant litigation progress part
                                 VIII
                                 Announcement of significant litigation progress part
                                 XIII
                                 Announcement of significant litigation progress part
                                 XIV
                               Announcement of significant litigation progress part
                               XVI
Note: The Company shall disclose other significant events that occurred during the reporting period
as stipulated in the Securities Law and the Administrative Measures for Disclosure of Information by
Listed Companies, as well as matters that the Board of Directors of the Company judges to be
significant events. If the aforesaid significant events have been disclosed on the designated website
as current announcements, only the relevant search index of the designated website for information
disclosure and the date of disclosure need to be stated.
? Applicable □ N/A
The Company invested in the technical upgrade program of intelligent brewing (Phase I) with the
wholly-owned subsidiary, Brewing Company, as the implementer. The total investment amount
approximated CNY 4,782.5090 million. The program has been approved at the First Extraordinary
General Meeting of Shareholders of 2022 on 16 August 2022. For further information, see
Announcement No. 2022-24 on the Implementation of Luzhou Laojiao Technical Upgrade Project of
Intelligent Brewing (Phase I) by Subsidiary.
              Section VII Changes in Shares and Information about
                                 Shareholders
                                                                                                                           Unit:Share
                        Before                             Changes in this year (+,-)                              After
                                                                    Capitaliz
                                 Proportio   Issuance of   Bonus     ation of
                  Number                                                        Other    Subtotal         Number           Proportion
                                    n        new shares    shares    capital
                                                                    reserves
 I.
 Restricted          247,921       0.02%      7,142,624                                  7,142,624         7,390,545           0.50%
 shares
 held by the
 state
 held by
 state-
 owned
 corporatio
 ns
 held by
 other               247,921       0.02%      7,142,624                                  7,142,624         7,390,545           0.50%
 domestic
 investors
 Of which:
 shares
 held by
 domestic
 corporatio
 ns
 Shares
 held by
 domestic            247,921       0.02%      7,142,624                                  7,142,624         7,390,545           0.50%
 individuals
 held by
 foreign
 corporatio
 ns
 Of which:
 shares
 held by
 foreign
 corporatio
 ns
 Shares
 held by
 foreign
 individuals
 II. Non-
 restricted     1,464,504,555     99.98%                                                            0   1,464,504,555         99.50%
 shares
 common         1,464,504,555     99.98%                                                            0   1,464,504,555         99.50%
 shares
 Domestical
 ly listed
 foreign
 shares
 Overseas
 listed
 foreign
 shares
 III. Total
 shares       1,464,752,476   100.00%   7,142,624                       7,142,624   1,471,895,100   100.00%
Reasons for the change in shares
?Applicable □ N/A
A. On 29 December 2021, the Proposal on the Grant of Restricted Shares to Awardees was deliberated
and approved at the 12th Meeting of the 10th Board of Directors and the Sixth Meeting of the 10th
Supervisory Committee. As such, it was decided to grant the restricted shares to eligible awardees and
the grant was completed and registered on 21 February 2022. A total of 6,862,600 restricted shares
were granted to 437 awardees as registered, which were listed on 22 February 2022.
B. On 25 July 2022, the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 18th Meeting of the 10th Board of Directors and the Ninth Meeting of
the 10th Supervisory Committee, respectively. As such, it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 26 September 2022. A total of
September 2022.
C. On 2 September 2022, the Proposal on the Repurchase and Retirement of Certain Restricted
Shares and the Adjustment of Repurchase Price was deliberated and approved at the 22nd Meeting of
the 10th Board of Directors and the 13th Meeting of the 10th Supervisory Committee. As such, the
Company decided to repurchase and retire the restricted shares held by awardees who were no longer
eligible which had been granted but not lifted from restricted sales. A total of 62,310 restricted shares
involving 7 awardees were repurchased and retired which was completed on 29 November 2022.
D. On 29 December 2022, the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 26th Meeting of the 10th Board of Directors and the 15th Meeting of
the 10th Supervisory Committee, respectively. As such, it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 16 February 2023. A total of 92,669
restricted shares were granted to 17 awardees as registered, which were listed on 17 February 2023.
Approval of share changes
?Applicable □ N/A
A. On 29 December 2021, the Proposal on the Grant of Restricted Shares to Awardees was deliberated
and approved at the 12th Meeting of the 10th Board of Directors and the Sixth Meeting of the 10th
Supervisory Committee. As such, it was decided to grant the restricted shares to eligible awardees and
the grant was completed and registered on 21 February 2022. A total of 6,862,600 restricted shares
were granted to 437 awardees as registered, which were listed on 22 February 2022. Upon the
completion of this grant registration, the total share capital of the Company increased to 1,471,615,076
shares from 1,464,752,476.
B. On 25 July 2022, the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 18th Meeting of the 10th Board of Directors and the Ninth Meeting of
the 10th Supervisory Committee, respectively. As such, it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 26 September 2022. A total of
September 2022. Upon the completion of this grant registration, the total share capital of the Company
increased to 1,471,957,410 shares from 1,471,615,076.
C. On 2 September 2022, the Proposal on the Repurchase and Retirement of Certain Restricted
Shares and the Adjustment of Repurchase Price was deliberated and approved at the 22nd Meeting of
the 10th Board of Directors and the 13th Meeting of the 10th Supervisory Committee. As such, the
Company decided to repurchase and retire the restricted shares held by awardees who were no longer
eligible which had been granted but not lifted from restricted sales. A total of 62,310 restricted shares
involving 7 awardees were repurchased and retired which was completed on 29 November 2022. Upon
the completion of this grant registration, the total share capital of the Company increased to
D. On 29 December 2022, the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 26th Meeting of the 10th Board of Directors and the 15th Meeting of
the 10th Supervisory Committee, respectively. As such, it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 16 February 2023. A total of 92,669
restricted shares were granted to 17 awardees as registered, which were listed on 17 February 2023.
Upon the completion of this grant registration, the total share capital of the Company increased to
Transfer of share ownership
? Applicable ? N/A
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and the last
reporting period
? Applicable ? N/A
Other contents that the Company considers it necessary or required by the securities regulatory
authorities to disclose
? Applicable ? N/A
? Applicable □ N/A
                                                                                                       Unit:Share
                    Number of
                                                                     Number of
                    restricted      Increase in     Decrease in
                                                                     restricted
                  shares held at     restricted      restricted
   Name of                                                         shares held at    Reason for        Date of
                  the beginning    shares during   shares during
  shareholder                                                      the end of the    restriction      unlocking
                      of the       the reporting   the reporting
                                                                     reporting
                    reporting          period          period
                                                                       period
                      period
                                                                                                   In accordance
                                                                                                   with the
                                                                                                   relevant
                                                                                                   provisions
                                                                                                   governing
                                                                                                   lifting the
 Restricted                                                                         shares for
 Share                                                                              equity
                                                                                                   the
 Incentive Plan                                                                     incentive
                                                                                                   Company’s
                                                                                                   Restricted
                                                                                                   Share
                                                                                                   Incentive Plan
 Total                        0       7,142,624                0       7,142,624          --              --
?Applicable □ N/A
  Name of                       Offering                             Number        Date of     Index to
 stock and      Date of         price (or   Number       Date of    approved     terminatio   disclosed     Date of
 derivative     offering        interest    offered      listing    for public       n of     informatio   disclosure
 securities                       rate)                              trading       trading         n
 Stocks
                                                                                              Announce
                                                                                              ment No.
                                                                                              the
 First grant
                                                                                              Completio
 of 2021
 Restricted
               February        92.71/shar   6,862,600   February    6,862,600                 Grant of     February
 Share
 Incentive
                                                                                              Shares
 Plan
                                                                                              disclosed
                                                                                              on
                                                                                              www.cninf
                                                                                              o.com.cn
                                                                                              Announce
                                                                                              ment No.
                                                                                              on the
                                                                                              Completio
 Grant of                                                                                     n of the
 reserved                                                                                     Grant of
 restricted                                                                                   Reserved
 shares for    28              CNY                      28                                    Restricted   26
 Restricted    r 2022          are                      r 2022                                2021         r 2022
 Share                                                                                        Restricted
 Incentive                                                                                    Share
 Plan                                                                                         Incentive
                                                                                              Plan
                                                                                              disclosed
                                                                                              on
                                                                                              www.cninf
                                                                                              o.com.cn
 Convertible corporate bonds, convertible corporate bonds with warrants, or corporate debt
 Other derivative securities
Notes to the offering of securities during the reporting period
A. On 29 December 2021, the Proposal on the Grant of Restricted Shares to Awardees was deliberated
and approved at the 12th Meeting of the 10th Board of Directors and the Sixth Meeting of the 10th
Supervisory Committee. As such, it was decided to grant the restricted shares to eligible awardees and
the grant was completed and registered on 21 February 2022. A total of 6,862,600 restricted shares
were granted to 437 awardees as registered, which were listed on 22 February 2022. For details, see
the Announcement No. 2022-1 on the Completion of the Grant of Restricted Shares disclosed on
www.cninfo.com.cn.
B. On 25 July 2022, the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 18th Meeting of the 10th Board of Directors and the Ninth Meeting of
the 10th Supervisory Committee, respectively. As such, it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 26 September 2022. A total of
September 2022. For details, see the Announcement No. 2022-54 on the Completion of the Grant of
Reserved Restricted Shares for 2021 Restricted Share Incentive Plan disclosed on www.cninfo.com.cn.
as the asset and liability structure
?Applicable □ N/A
During the Reporting Period, the total shares of the Company increased by 7,142,624 shares due to the
implementation of the 2021 Restricted Share Incentive Plan, among which, the grant, registration and
listing of 6,862,600 restricted shares for the first time and 342,334 reserved restricted shares were
completed on 22 February and 28 September 2022, respectively; and the repurchase and retirement of
□Applicable ? N/A
                                                                                                           Unit:Share
                                                    Total
                          Total                     number of
                          number of                 preferred
 Total
                          common                    shareholder
 number of
                          shareholder               s with                   Total number of preferred
 common
                          s at the prior            resumed                  shareholders with resumed
 shareholder
 s at the end
                          before the                by the end               the reporting period (if
 of the
                          disclosure                of the                   any)(see Note 8)
 reporting
                          date of the               reporting
 period
                          annual                    period (if
                          report                    any)(see
                                                    Note 8)
                      Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders
                                                Total shares   Increase/de                                     Pledged, marked or frozen
                                                                               Number of       Number of
                                Shareholdin      held by the      crease                                                shares
 Name of          Nature of                                                     holding       holding non-
                                    g            end of the     during the
shareholder      shareholder                                                   restricted      restricted      Status of      Number of
                                percentage        reporting      reporting
                                                                                shares           shares         shares         shares
                                                   period         period
Luzhou
Laojiao          State-owned
Group Co.,       corporation         25.89%     381,088,389    0                          0   381,088,389
Ltd.
Luzhou
XingLu
                 State-owned
Investment                           24.86%     365,971,142    0                          0   365,971,142
                 corporation
Group Co.,
Ltd.
Bank of
China Co.,
Ltd. – Baijiu
index
classification
securities       Other                3.13%      46,076,226    -1,019,108                 0    46,076,226
investment
fund by
China
Merchants
Fund
Hong Kong
Securities
                 Outbound
Clearing                              3.10%      45,612,656    10,172,568                 0    45,612,656
                 corporation
Company
Limited
China
Securities
Finance          Other                2.30%      33,842,059    0                          0    33,842,059
Corporation
Limited
Bank of
China Co.,
Ltd.-Blue
chip
selected         Other                1.56%      22,930,000    -3,070,000                 0    22,930,000
hybrid
securities
investment
fund by E
Fund
Industrial
and
Commercial
Bank of
China Co.,
Ltd.-Newly
growth           Other                1.20%      17,673,777    -1,526,223                 0    17,673,777
hybrid
securities
investment
fund by
Invesco
Great Wall
Central
Huijin Asset     State-owned
Managemen        corporation          0.92%      13,539,862    0                          0    13,539,862
t Co., Ltd.
Agricultural
Bank of
China Co.,
Ltd. -
Consumptio
n industry       Other                0.72%      10,573,293    0                          0    10,573,293
stock -
based
securities
investment
fund by E
Fund
China Life
Insurance
Company
Limited-
Tradition-
common          Other                 0.58%       8,594,014    /                           0        8,594,014
insurance
product-
CT001 Shen
Strategic investors or
general corporations
become the top-ten
shareholders due to placing     N/A
of new shares(if any)(see
note 3)
                                owned companies under the jurisdiction of SASAC of Luzhou. The two companies signed the agreement of
                                persons acting in concert on 31 December 2015. For details, please refer to the announcement of the
                                Company on 5 January 2016 - Announcement on the agreement of persons acting in concert signed by
Related parties or acting-in-   shareholders. The announcement number is 2016-1 (http://www.cninfo.com.cn/). The two companies signed
concert                         the renewed agreement of persons acting in concert on 27 May 2021. For details, please refer to the
                                announcement of the Company on 29 May 2021 - Announcement on the renewed agreement of persons
                                acting in concert signed by shareholders. The announcement number is 2021-18 (http://www.cninfo.com.cn/).
                                acting in concert is unknown.
Explain if any of the
shareholders above was
involved in entrusting/being
                                N/A
entrusted with voting rights
or waiving voting rights
Special account for
repurchased shares among
the top 10 shareholders (if     N/A
any) (see note 10)
                                          Shareholdings of the top 10 non-restricted shareholders
                                                                                                                      Type of shares
    Name of shareholder          Number of non-restricted shares held in by the end of the reporting period
                                                                                                                   Type          Number
                                                                                                                   CNY
Luzhou Laojiao Group Co.,
Ltd.
                                                                                                                  shares
                                                                                                                   CNY
Luzhou XingLu Investment
Group Co., Ltd.
                                                                                                                  shares
Bank of China Co., Ltd. –
                                                                                                                   CNY
Baijiu index classification
securities investment fund
                                                                                                                  shares
by China Merchants Fund
                                                                                                                   CNY
Hong Kong Securities
Clearing Company Limited
                                                                                                                  shares
                                                                                                                   CNY
China Securities Finance
Corporation Limited
                                                                                                                  shares
Bank of China Co., Ltd.-
                                                                                                                   CNY
Blue chip selected hybrid                                                                                        common
securities investment fund                                                                       22,930,000                     22,930,000
                                                                                                                  shares
by E Fund
Industrial and Commercial
Bank of China Co., Ltd.-                                                                                           CNY
Newly growth hybrid                                                                              17,673,777      common         17,673,777
securities investment fund                                                                                        shares
by Invesco Great Wall
                                                                                                                   CNY
Central Huijin Asset
Management Co., Ltd.
                                                                                                                  shares
Agricultural Bank of China                                                                                         CNY
Co., Ltd. - Consumption                                                                                          common
industry stock - based                                                                                            shares
securities investment fund
 by E Fund
 China Life Insurance
 Company Limited-Tradition-                                                                                       CNY
 common insurance product-
                                                                                                                 shares
 The statement of association
 or acting-in-concert between
 the top 10 shareholders of
 unrestricted shares and
 between the top 10                 See the table above
 shareholders of unrestricted
 shares and top 10
 shareholders
 Top 10 common
 shareholders participating in
 securities margin trading (if      N/A
 any) (see note 4)
Did any of the top 10 common shareholders or the top non-restricted common shareholders of the
Company conduct any promissory repurchase during the reporting period.
□Yes ? No
The top 10 non-restricted common shareholders, the top10 common shareholders did not conduct any
promissory repurchase during the reporting period.
Nature of controlling shareholder:Local state-owned
Type of controlling shareholder:Corporation
                                     Legal
    Name of controlling          representative      Date of
                                                                     Credibility code                   Main business scope
      shareholder                  /Company       establishment
                                    principal
                                                                                          General project: Social economy consulting
                                                                                          services; business management consulting;
                                                                                          financial consulting; business headquarters
                                                                                          management; import and export agency; trade
                                                                                          brokerage; crops planting services; trees
                                                                                          planting operation; elder care services; tourism
                                                                                          development project planning and consulting;
                                                                                          technical agency services; engineering and
                                                                                          technological research and experimental
                                                                                          development; display device manufacturing;
                                                                                          supply chain management services; technical
 Luzhou Laojiao Group                              21 December
                                 Liu Miao                         91510500723203346U      services, technical development, technical
 Co., Ltd.                                             2000
                                                                                          consulting, technical communication, technical
                                                                                          transfer, and technical promotion; domestic
                                                                                          freight transport agency; and equity fund-
                                                                                          invested asset management services. It shall
                                                                                          also include licensed projects (business
                                                                                          activities can be carried out legally and
                                                                                          independently with business license in addition
                                                                                          to projects that must be approved by law):
                                                                                          Agency bookkeeping; career intermediary
                                                                                          activities; food production; food sales; and
                                                                                          medical services. (business activities that
                                                                                              require approval in accordance with laws can
                                                                                              be carried out upon approval of relevant
                                                                                              authorities, and the specific business projects
                                                                                              shall be subject to the approval document or
                                                                                              license of relevant departments)
 Shareholdings of the         (02281.HK), accounting for 8.19% of the total issued shares.
 controlling shareholder in   2. As of 30 September 2022, Laojiao Group holds 212,954,666 shares of Hongli Zhihui Group Co., Ltd.
 other controlled or non-     (300219.SZ) through its wholly-owned subsidiary, Sichuan Jinduo investment Co., Ltd., accounting for 30.08% of
 controlled listed            the total issued shares.
 companies at home or         3. As of 30 September 2022, Laojiao Group holds 475,940,143 shares of Huaxi Securities Co., Ltd. (002926.SZ),
 abroad during the            accounting for 18.13% of the total issued shares.
 reporting period             4. As of 31 December 2022, Laojiao Group holds 390,528,000 shares of Luzhou Bank (01983.HK), accounting
                              for 14.37% of the total issued shares.
Change of the controlling shareholder during the reporting period
□Applicable ? N/A
No such cases in the reporting period
Nature of actual controller:Local State-owned Assets Supervision and Administration Commission
Type of actual controller:Corporation
                                       Legal
 Name of actual controller    representative/Company         Date of establishment           Credibility code          Main business scope
                                     principal
                                                                                                                      State-owned assets
                                                                                                                      supervision and
 SASAC of Luzhou              Du Lei                             1 March 2005          11510400771686813T
                                                                                                                      administration
                                                                                                                      department
                              Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), accounting for 59.51% of the total issued shares. Luzhou
                              Infrastructure Construction Investment Co., Ltd., a holding subsidiary of XingLu Group, holds 62,709,563 shares
                              of Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), and accounting for 7.29% of the total issued shares.
                              Laojiao Group, a controlled subsidiary under SASAC of Luzhou, holds 70,406,310 shares of Luzhou Xinglu
                              Water (Group) Co., Ltd. (02281.HK), accounting for 8.19% of the total issued shares.
 Share holdings of the
                              (300219.SZ) through its controlled subsidiary, Sichuan Jinduo investment Co., Ltd., accounting for 30.08% of the
 controlling shareholder in
                              total shares issued.
 other controlled or non-
 controlled listed
                              jurisdiction of SASAC of Luzhou, holds 193,464,610 shares of Sichuan Lutianhua Company Limited
 companies at home or
                              (000912.SZ), accounting for 12.34% of the total shares issued. Lutianhua Group Company Limited, a wholly-
 abroad during the
                              owned subsidiary of Luzhou Industrial Investment Group Co., Ltd., holds 221,458,993 shares of Sichuan
 reporting period.
                              Lutianhua Company Limited (000912.SZ), and accounting for 13.49% of the total issued shares.
                              shares of Huaxi Securities Co., Ltd. (002926.SZ), accounting for 18.13% of the total issued shares.
                              shares of Luzhou Bank (01983.HK), accounting for 14.37% of the total issued shares. XingLu Group, a
                              controlled subsidiary under SASAC of Luzhou, holds 40,549,462 shares of Luzhou Bank (01983.HK), accounting
                              for 1.79% of the total issued shares.
Change of the actual controller during the reporting period
□Applicable ? N/A
The actual controller of the Company has not changed during the reporting period.
Ownership and control relations between the actual controller and the Company
The actual controller control the company through a trust or other ways of assets management
□Applicable ? N/A
shareholder or the largest shareholder as well as its acting-in-concert parties
accounts for 80% of all shares of the company held by them
□Applicable ? N/A
?Applicable □ N/A
                       Legal
    Name of
                    representat       Date of       Registered
    corporate                                                                   Main business scope
                    ive/Compa      establishment   capital (CNY)
   shareholder
                    ny principal
                                                                   Investment and asset management; project
                                                                   management services; self-finance real estate
                                                                   business activities; investment advisory
 Luzhou XingLu                                                     services and financial advisory services
 Investment Group   Dai Zhiwei                     4,934,049,244   (excluding such financial activities as illegal
 Co., Ltd.                                                         capital raising and collecting public funds)
                                                                   (business activities that require approval in
                                                                   accordance with laws can be carried out upon
                                                                   approval of relevant authorities)
actual controller, restructuring party and other commitment entities.
□Applicable ? N/A
period
Implementation progress of shares repurchases
□Applicable ? N/A
Implementation progress of share buyback reduction through centralized bidding
□Applicable ? N/A
                           Section VIII Preferred Shares
□Applicable ? N/A
No preferred stock in the Company during the reporting period.
                        Section IX Information about Bond
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
                                                                                                  Unit: CNY
                                                                                       Way of
                                  Issue    Value                Bond       Interest               Place of
  Name        Abbr.     Code                       Due date                           redempti
                                   date    date                balance       rate                 trading
                                                                                         on
 Public
 Offering
 of
 Corporat
                                                                                      Fully
 e Bond                                                                                           Shenzhe
 of          19 Lao    112959.                                 2,500,00                           n Stock
                                 August   August   August                 3.58%       d on 29
 Luzhou      Jiao 01   SZ                                      0,000.00                           Exchang
 Laojiao                                                                                          e
 Co., Ltd.
 for
 Qualified
 Investors
 (Phase I)
                                                                                      In terms
                                                                                      of the
 Public                                                                               this
 Offering                                                                             phase,
 of                                                                                   interests
 Corporat                                                                             will be
 e Bond                                                                               paid by     Shenzhe
 of          20 Lao    149062.                                 1,500,00               year and    n Stock
                                 March    March    March                  3.50%
 Luzhou      Jiao 01   SZ                                      0,000.00               the         Exchang
 Laojiao                                                                              principal   e
 Co., Ltd.                                                                            will be
 for                                                                                  repaid in
 Qualified                                                                            lump
 Investors                                                                            sum at
 (Phase I)                                                                            maturity.
                                                                                      The
                                                                                      interests
                                                                                                   will be
                                                                                                   paid
                                                                                                   once
                                                                                                   every
                                                                                                   year and
                                                                                                   the
                                                                                                   interests
                                                                                                   for the
                                                                                                   last
                                                                                                   installme
                                                                                                   nt will be
                                                                                                   paid
                                                                                                   together
                                                                                                   with the
                                                                                                   principal.
                                                                                                   In terms
                                                                                                   of the
                                                                                                   bonds of
                                                                                                   this
                                                                                                   phase,
                                                                                                   interests
                                                                                                   will be
                                                                                                   paid by
                                                                                                   year and
Public                                                                                             principal
Offering                                                                                           will be
of                                                                                                 repaid in
Corporat                                                                                           lump
e Bond                                                                                             sum at
                                                                                                                Shenzhe
of                                   2           2           2                                     maturity.
Luzhou                               Decemb      Decemb      Decemb                  2.85%         The
            Jiao 01      SZ                                              0,000.00                               Exchang
Laojiao                              er 2022     er 2022     er 2025                               interests
                                                                                                                e
Co., Ltd.                                                                                          will be
for                                                                                                paid
Professi                                                                                           once
onal                                                                                               every
Investors                                                                                          year and
(Phase I)                                                                                          the
                                                                                                   interests
                                                                                                   for the
                                                                                                   last
                                                                                                   installme
                                                                                                   nt will be
                                                                                                   paid
                                                                                                   together
                                                                                                   with the
                                                                                                   principal.
                                     The bonds are applicable to eligible investors who have qualified securities
                                     accounts with Shenzhen Branch of China Securities Depository and Clearing Co.,
                                     Ltd., are permitted to engage in the subscription and transfer of corporate bonds
                                     in accordance with the Management Measures for the Issue and Transaction
Appropriate arrangement of the
                                     Management of Corporate Bonds, Management Measures for the Suitability of
investors (if any)
                                     Securities and Futures Investors, Management Measures of Shenzhen Stock
                                     Exchange for the Suitability of Securities Market Investors, and relevant laws and
                                     regulations, and have the corresponding risk identification and bearing capacity
                                     (excluding those prohibited by laws and regulations)
Trading systems applicable           Tradable by way of bidding, offering, inquiry and agreement
Risk of termination of listing and
trading (if any) and                 N/A
countermeasures
Overdue bonds
□Applicable ? N/A
protection clauses
□Applicable ? N/A
                                                             Signature      Contact person
       Bond            Intermediary    Office address                                          Contact number
                                                            accountant      of intermediary
 Offering of
 Corporate Bond
 of Luzhou
 Laojiao Co., Ltd.
 for Qualified
 Investors (Phase
 I)/ 2020 Public
 Offering of
                     China            World Office 2,
 Corporate Bond
                     International    No. 1
 of Luzhou
                     Capital          Jianguomenwai       N/A              Qi Qin              (010)65051166
 Laojiao Co., Ltd.
                     Corporation      Avenue,
 for Qualified
                     Limited.         Chaoyang
 Investors (Phase
                                      District, Beijing
 I)/ 2022 Public
 Offering of
 Corporate Bond
 of Luzhou
 Laojiao Co., Ltd.
 for Professional
 Investors (Phase
 I)
 Offering of
 Corporate Bond
 of Luzhou
 Laojiao Co., Ltd.
 for Qualified
 Investors (Phase
 I)/ 2020 Public                      Building 6,
 Offering of                          Galaxy SOHO,
 Corporate Bond      China Chengxin   No.2 Nanzhugan
 of Luzhou           International    hutong,
                                                          N/A              Sun Shu             (010)66428877
 Laojiao Co., Ltd.   Credit Rating    Chaoyangmenne
 for Qualified       Co., Ltd.        i Avenue,
 Investors (Phase                     Dongcheng
 I) / 2022 Public                     District, Beijing
 Offering of
 Corporate Bond
 of Luzhou
 Laojiao Co., Ltd.
 for Professional
 Investors (Phase
 I)
Indicate by tick mark whether above intermediaries changed in the reporting period
□Yes ? No
                                                                                                           Unit: CNY
                                                                                                        Whether is
                                                                                                        consistent
                                                                                          Rectificat
                                                                                                          with the
                                                                                            ion of
                                                                                                       usage, using
                                                                                            raised
                  Total         Amount       Unused     Operation of special account                     plan and
     Bonds                                                                                funds for
                 amount          spent       amount       for raised funds (if any)                        other
                                                                                          violation
                                                                                                       agreements
                                                                                          operation
                                                                                                       stipulated in
                                                                                           (if any)
                                                                                                        the raising
                                                                                                       specification
                                                        Fully redeemed in August
                                                        up a special account to
                                                        deposit the funds raised and
                                                        has signed a fund account
                                                        supervision agreement to
                                                        clarify it. The special account
                                                        for fund raising was
                                                        operating normally during the
                                                        Reporting Period. (1)
                                                        Account name: Luzhou
 Offering of                                            bank: Guangfa Bank Co.,
 Corporate                                              Ltd., Chengdu Branch; Bank
 Bond of                                                account:
 Luzhou         2,500,000,0   2,530,818,42              9550880046723000135. (2)
 Laojiao Co.,         00.00          3.111              Account name: Luzhou
 Ltd. for                                               Laojiao Co., Ltd.; Opening
 Qualified                                              bank: Bank of
 Investors                                              Communications Co., Ltd.,
 (Phase I)                                              Luzhou Branch; Bank
                                                        account:
                                                        (3) Account name: Luzhou
                                                        Laojiao Co., Ltd.; Opening
                                                        bank: China Merchants Bank
                                                        Co., Ltd., Chengdu Fucheng
                                                        Avenue Sub-branch; Bank
                                                        account: 028900140410888.
                                                        (The bonds have been fully
                                                        redeemed on 29 August
                                                        The company has set up a
                                                        special account to deposit
 Offering of                                            signed a fund account
 Corporate                                              supervision agreement to
 Bond of                                                clarify it. The special account
 Luzhou         1,500,000,0   861,042,216.   714,356,   for fund raising was
 Laojiao Co.,                                           operating normally during the        N/A           Yes
 Ltd. for                                               Reporting Period. (1)
 Qualified                                              Account name: Luzhou
 Investors                                              Laojiao Co., Ltd.; Opening
 (Phase I)                                              bank: Guangfa Bank Co.,
                                                        Ltd., Chengdu Branch; Bank
                                                        account:
                                                       Account name: Luzhou
                                                       Laojiao Co., Ltd.; Opening
                                                       bank: Bank of
                                                       Communications Co., Ltd.,
                                                       Luzhou Branch; Bank
                                                       account:
                                                       (3) Account name: Luzhou
                                                       Laojiao Co., Ltd.; Opening
                                                       bank: China Minsheng Bank
                                                       Co., Ltd., Chengdu Branch;
                                                       Bank account: 631395395.
 Offering of
 Corporate                                             Luzhou Laojiao Co., Ltd.;
 Bond of                                               Opening bank: China
 Luzhou         1,500,000,0   1,498,800,00             Merchants Bank Co., Ltd.,
 Laojiao Co.,         00.00          0.002             Chengdu Fucheng Avenue
 Ltd. for                                              Sub-branch; Bank account:
 Professional                                          028900140410888.
 Investors
 (Phase I)
Note 1: Including accumulated interest income of CNY 40,825,632.44, net of issue costs of CNY
Note 2: Deducted the issue costs of CNY 1,200,000.
The raised funds were used for project construction
?Applicable □ N/A
The Company raised a fund of CNY 4.0 billion through the issue of corporate bonds respectively on 27
August 2019 and 16 March 2020. After deduction of the issue fees, the balance amount was set to use
in the technical renovation project of brewing (Phase II), Project of Intelligent Upgrading and Building of
the Information Management System, Project of Acquiring Sealing Equipment for the Cellar of Huangyi
Brewing Base and Project of Acquiring Accessory Equipment for Leaven Making for Huangyi Brewing
Base. As of 31 December 2022, CNY 3,391,860,600 of the fund-raising through the issue of corporate
bonds had been used.
The Company changed the usage of above funds raised from bonds during the reporting period.
□Applicable ? N/A
□Applicable ? N/A
repayment-ensuring measures in the reporting period, as well as the impact on the
interests of bond holders
□Applicable ? N/A
□Applicable ? N/A
No such cases in the reporting period.
□Applicable ? N/A
No such cases in the reporting period.
the end of last year
□Applicable ? N/A
□Applicable ? N/A
reporting period
□Yes ? No
years of the company as of the end of the reporting period
                                                                                     Unit:CNY 10,000
              Item           31 December 2022       31 December 2021                Change
Current ratio                               3.15                    2.43                      29.63%
Debt/asset ratio                          33.19%                 34.89%                       -1.70%
Quick ratio                                 2.20                    1.74                      26.44%
Net profits before non-
recurring gains and losses
EBITDA/debt ratio                        235.37%                277.43%                      -42.06%
Interest cover (times)                     61.28                   49.41                      24.02%
EBITDA-to-interest cover
(times)
                              Section X Financial Report
 Type of audit report                                Standard without reserved opinion
 Signing date of auditor’s report                    28 April 2023
 Name of Audit                                       Sichuan Huaxin (Group) CPA Firm
 No. of auditor’s report                             Chuan Huaxin Audit [2023] No. 0042
 Names of auditors                                   Li Wulin, Tang Fangmo, Fan Bo
                                           Auditor’s Report
To the shareholders of Luzhou Laojiao Co., Ltd.:
Opinion
We have audited the financial statements of Luzhou Laojiao Co., Ltd. (hereinafter referred to as the
“Company”), which comprise the consolidated balance sheet and balance sheet as at 31 December
cash flow statement, consolidated statement of changes in owners' equity and statement of changes in
owners' equity for the year then ended; and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance
with Accounting Standards for Business Enterprises and present fairly the financial position of the
company as at 31 December 2022 and its operating results and cash flow for the year then ended.
Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”) for Certified Public
Accountants. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the Code of professional ethics for Certified Public Accountants in
China (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole and, in forming our opinion
thereon, and we do not provide a separate opinion on these matters. Key audit matters identified in our
audit are summarized as follows:
              Key audit matters                 How our audit addressed the Key Audit Matter
                                                        Our procedures in relation to recognition of domestic
                                                        baijiu sales revenue included:
                                                        reasonableness and effectiveness of the internal
                                                        control design related to the Company's revenue.
                                                        Particular attention was paid to the appropriateness of
                                                        specific conditions for recognition of revenue.
                                                        unit price of sales and gross profit rate of the Company
                                                        in the current period with those in the previous period,
                                                        so as to identify the rationality of changes in key
                                                        indicators and reasons for changes.
                                                        customers, we carried out the following audit
                                                        procedures to verify the occurrence, completeness and
                                                        accuracy of the revenue recognized by the
                                                        management:
                                                        (1) Obtained the sales contract signed by the
                                                        Company and the customer, carefully read the key
As shown in Note 5.36 in the Financial Statements,      terms of the contract, and understand the
the domestic baijiu sales revenue in the Company        implementation of the contract;
is CNY 24,613,436,200, accounting for 99.38% of         (2) Performed the confirmation procedure. We sent
the     primary business       revenue     of   CNY     confirmation letters to verify the amount of sales
Company's operating profit. For the operating           balance of accounts receivables or contract liabilities
revenue is one of the key results indicators and the    during the reporting period. For local customers in
inherent risk of its misstatement is relatively high,   Luzhou, we went to their office to carry out
therefore, we identified the recognition of domestic    confirmation procedure and obtained the situation of
baijiu sales revenue as a key audit matter.             purchase, sales and storage of Luzhou Laojiao brand
                                                        baijiu during the reporting period, so as to analyze and
                                                        judge whether there are abnormal fluctuations in its
                                                        inventory and its rationality; For customers outside
                                                        Luzhou, we mailed confirmation letters and controlled
                                                        the whole process of reply letter by ourselves.
                                                        (3) Inquired the customer's business information and
                                                        key personnel information, and checked whether they
                                                        are related party of the Company.
                                                        contracts, customers' purchase orders, shipping
                                                        documents,       transport    documents,        accounting
                                                        vouchers, payment receipts, customer signature
                                                        records and other materials to verify the occurrence,
                                                        completeness and accuracy of the revenue recognized
                                                        by the management.
                                                        of sales before and after the balance sheet date, paid
                                                        attention to the date of sales invoice and customer
                                                        receipt, and paid attention to whether there is a large
                                                        amount of return after the period, so as to verify
                                                      whether the corresponding revenue is included in the
                                                      appropriate accounting period.
                                                      The evidence obtained from the above audit
                                                      procedures can support the Company's management's
                                                      recognition of domestic baijiu sales revenue.
              Key audit matters                 How our audit addressed the Key Audit Matter
                                                      Our procedures in relation to existence of bank
                                                      deposits included:
                                                      implementation of key internal controls related to the
                                                      funds management cycle to confirm the effectiveness
                                                      of relevant internal controls.
                                                      Company, auditors went to the bank by themselves
                                                      where the Company opens a basic bank account to
                                                      print the account opening list of the Company and
                                                      check the account opening information individually.
                                                      with the original amount of bank statements and
                                                      certificates of deposit, and obtained all copies.
                                                      bank statements, obtained the balance reconciliation
As shown in Note 5.1 in the Financial Statements,     of all bank accounts compiled by the Company, and
as of 31 December 2022, the bank balance of the       check all the outstanding items, whether there are any
Company is CNY 17,729,643,100, accounting for         important overdue items that are not booked in time.
risk assets. Therefore, we identified the existence   Company's bank deposits, the confirmation letters
of bank deposits as a key audit matter.               were sent out by mailing after auditors checked the
                                                      address and the receiver through telephone, network
                                                      and other public information, and we controlled the
                                                      whole reply letter process by ourselves.
                                                      deposit agreements, identified the types of relevant
                                                      bank deposits, analyzed the principal and interest
                                                      recovery risks, and judged the adequacy of the
                                                      disclosure.
                                                      about the purpose of all bank accounts on the
                                                      Company's books and analyzed whether there are
                                                      abnormal use or bank accounts opened for unknown
                                                      reasons.
                                                      The evidence obtained from the above audit
                                                      procedures can support the Company's management's
                                                      assertion of the existence of bank deposits.
Other information
The directors of the Company are responsible for the other information. The other information
comprises the information included in the annual report, but does not include the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of directors and those charged with governance for the financial statements
The directors of the Company are responsible for the preparation of the financial statements that give a
true and fair view in accordance with the disclosure requirements of Accounting Standards for Business
Enterprises, and designing, implementing and maintaining internal control that is necessary to ensure
the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
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 whether the
financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
 Sichuan Huaxin (Group) CPA Firm              Chinese CPA: Li Wulin
                                              (Engagement Partner)
         Chengdu·China                        Chinese CPA: Tang Fangmo
                                              Chinese CPA: Fan Bo
Monetary unit for the financial statements and the notes thereto: CNY
Prepared by: Luzhou Laojiao Co., Ltd.
                                         Consolidated balance sheet
                                            As at 31 December 2022
                                                                                             Monetary Unit: CNY
                   Item                   Balance as at 31 December 2022       Balance as at 1 January 2022
 Current assets:
 Cash and cash equivalents                               17,757,528,211.25                    13,513,494,580.56
 Settlement reserves
 Lending funds
 Held-for-trading financial assets                        1,073,466,780.37                       706,352,241.79
 Derivative financial assets
 Notes receivables
 Accounts receivables                                         5,939,420.78                          1,628,248.55
 Accounts receivables financing                           4,583,352,503.37                     4,757,631,778.64
 Prepayment                                                114,257,506.26                        178,087,688.81
 Premiums receivable
 Reinsurance accounts receivable
 Reinsurance contract reserve
 Other receivables                                          23,396,533.98                         28,615,361.96
 Including:Interests receivable
               Dividends receivable
 Buying back the sale of financial
 assets
 Inventories                                              9,840,742,374.85                     7,277,573,166.80
 Contract assets
 Assets held for sale
 Non-current assets due within one
 year
 Other current assets                                      153,035,946.94                         111,974,532.91
 Total current assets                                   33,551,719,277.80                     26,575,357,600.02
 Non-current assets:
 Disbursement of loans and advances
 Investments in debt obligations
 Investments in other debt obligations
 Long-term receivables
 Long-term equity investments                             2,667,500,553.17                     2,626,744,236.25
 Investments in other equity
 instruments
 Other non-current financial assets
 Investment property                                        39,149,454.22
 Fixed assets                                             8,856,258,598.78                     8,089,487,274.39
 Construction in progress                                  808,919,047.21                      1,259,845,487.50
 Productive biological assets
Oil and gas assets
Use right assets                            39,952,525.63                         52,714,810.04
Intangible assets                         3,083,271,852.79                     2,606,359,188.72
Development expenses
Goodwill
Long-term deferred expenses                    710,010.92                           1,463,869.21
Deferred tax assets                       1,005,167,353.80                       986,112,983.42
Other non-current assets                   196,095,702.09                        650,384,435.70
Total non-current assets                 17,833,762,076.72                    16,636,424,405.66
Total assets                             51,385,481,354.52                    43,211,782,005.68
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable                          2,311,665,585.04                     2,420,354,469.53
Advance from customer
Contract liabilities                      2,566,374,718.76                      3,510,110,701.25
Financial assets sold for repurchase
Deposits from customers and inter-
bank
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable                  675,034,885.31                        648,103,740.96
Taxes payable                             3,481,150,728.98                     3,173,479,627.79
Other payable                             1,202,409,278.49                       652,393,292.60
Including:Interests payable
            Dividends payable               16,594,850.58
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities                  333,627,225.47                        456,314,391.17
Total current liabilities                10,652,141,888.68                    10,946,958,438.33
Non-current liabilities:
Insurance contract reserves
Long-term loans                           3,179,600,000.00
Bonds payable                             2,996,099,571.86                     3,990,785,742.23
Including:Preferred shares
            Perpetual bonds
Lease liabilities                           29,096,969.66                         40,667,668.08
Long-term payables
Long-term payroll payables
 Accrued liabilities
 Deferred income                                            33,704,323.80                         28,531,014.28
 Deferred tax liabilities                                  166,043,663.88                         67,578,019.93
 Other non-current liabilities
 Total non-current liabilities                            6,404,544,529.20                     4,127,562,444.52
 Total liabilities                                      17,056,686,417.88                     15,074,520,882.85
 Owners' equity
 Share capital                                            1,471,895,100.00                     1,464,752,476.00
 Other equity instruments
 Including: Preferred shares
            Perpetual bonds
 Capital reserves                                         4,800,154,468.99                     3,755,354,665.73
 Less: treasury stock                                      639,021,998.78
 Other comprehensive income                                330,751,245.84                        167,527,152.32
 Special reserves
 Surplus reserves                                         1,471,895,100.00                     1,464,752,476.00
 General risk reserve
 Undistributed profits                                  26,772,197,213.98                     21,187,860,235.89
 Total equity attributable to owners of
 the parent company
 Non-controlling interests                                 120,923,806.61                          97,014,116.89
 Total owners' equity                                   34,328,794,936.64                     28,137,261,122.83
 Total liabilities and owners' equity                   51,385,481,354.52                     43,211,782,005.68
Legal representative:Liu Miao
Person in charge of accounting affairs:Xie Hong
Person in charge of accounting department:Yan Li
                                      Balance sheet of parent company
                                           As at 31 December 2022
                                                                                             Monetary Unit: CNY
                     Item                 Balance as at 31 December 2022       Balance as at 1 January 2022
 Current assets:
 Cash and cash equivalents                              17,009,231,873.64                     13,038,549,397.55
 Held-for-trading financial assets                         974,505,894.18                        706,352,241.79
 Derivative financial assets
 Notes receivables
 Accounts receivables                                           47,500.00                           1,207,477.63
 Accounts receivables financing
 Prepayment                                                   2,141,256.01                          1,464,893.09
 Other receivables                                      12,042,401,844.84                     10,033,554,898.57
 Including:Interests receivable
               Dividends receivable
 Inventories                                                  2,499,333.08                          3,918,211.13
 Contract assets
 Assets held for sale
Non-current assets due within one
year
Other current assets                            34,163.66
Total current assets                     30,030,861,865.41                    23,785,047,119.76
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments              6,278,966,093.87                     6,051,400,833.91
Investments in other equity
instruments
Other non-current financial assets
Investment property                         39,149,454.22
Fixed assets                              1,021,509,077.72                     1,087,640,695.62
Construction in progress                    49,136,390.14                         53,881,812.48
Productive biological assets
Oil and gas assets
Use right assets                               600,190.05                            573,800.02
Intangible assets                          617,211,243.56                        671,147,243.40
Development expenses
Goodwill
Long-term deferred expenses                    548,507.41                           1,364,659.65
Deferred tax assets                        147,351,049.81                         91,734,925.57
Other non-current assets                    14,808,459.12                            500,600.00
Total non-current assets                  9,305,713,522.38                     8,321,227,769.45
Total assets                             39,336,575,387.79                    32,106,274,889.21
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable                            51,174,790.68                         83,724,151.54
Advance from customer
Contract liabilities                          1,510,508.26                          2,523,947.74
Employee benefits payable                  241,471,148.70                        234,008,858.96
Taxes payable                              381,259,266.93                        285,894,625.64
Other payables                            1,730,335,596.91                     1,659,106,919.10
Including:Interests payable
            Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities                      196,366.07                             328,113.21
Total current liabilities                 2,473,621,613.82                      2,338,211,754.27
Non-current liabilities:
Long-term loans                           3,179,600,000.00
Bonds payable                             2,996,099,571.86                     3,990,785,742.23
Including:Preferred shares
           Perpetual bonds
Lease liabilities                                           203,920.20                           163,523.64
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income
Deferred tax liabilities                               132,565,131.74                         67,578,019.93
Other non-current liabilities
Total non-current liabilities                        6,308,468,623.80                      4,058,527,285.80
Total liabilities                                    8,782,090,237.62                      6,396,739,040.07
Owners' equity
Share capital                                        1,471,895,100.00                      1,464,752,476.00
Other equity instruments
Including: Preferred shares
           Perpetual bonds
Capital reserves                                     4,789,603,151.65                      3,739,666,108.27
Less: treasury stock                                   639,021,998.78
Other comprehensive income                             328,542,995.36                        167,572,013.86
Special reserves
Surplus reserves                                     1,471,895,100.00                      1,464,752,476.00
Undistributed profits                               23,131,570,801.94                     18,872,792,775.01
Total owners' equity                                30,554,485,150.17                     25,709,535,849.14
Total liabilities and owners' equity                39,336,575,387.79                     32,106,274,889.21
                                     Consolidated income statement
                                                                                          Monetary Unit: CNY
                    Item                        Year 2022                            Year 2021
Including: Operating revenue                        25,123,563,271.62                     20,642,261,724.37
           Interest income
           Earned premium
           Fee and commission
income
Including: Cost of sales                             3,369,528,394.02                      2,952,431,488.31
            Interest expense
         Handling charges and
commission expenses
            Refunded premiums
          Net payments for
insurance claims
           Net provision for
insurance contracts
            Bond insurance expense
            Reinsurance Expenses
           Taxes and surcharges           3,523,948,287.48                     2,864,901,542.85
           Selling and distribution
expenses
           General and administrative
expenses
        Research and
Development expenses
           Financial expenses              -286,376,927.48                       -216,885,999.21
             Including:Interest
expenses
                  Interest income          505,746,664.32                        419,897,541.04
Plus: Other income                          36,524,317.09                         52,319,231.39
      Investment income ("-" for
losses)
         Including: income from
investment in associates and joint          84,626,608.53                        195,543,058.40
ventures
                    Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
        Foreign exchange gains ("-"
for losses)
         Net gain on exposure hedges
(“-” for losses)
      Gains from the changes in fair
                                            -12,023,622.50                          6,352,241.79
values(“-“ for losses)
        Credit impairment losses (“-”
                                             -1,165,718.34                         81,126,114.88
for losses)
      Impairment losses(“-“ for
losses)
      Gains from disposal of
assets("-" for losses)
 Plus: non-operating income                 27,833,420.31                         27,246,707.88
 Less: non-operating expenses               19,959,493.06                         66,717,487.09
total losses)                            13,854,751,640.29                    10,550,959,488.12
 Less: income tax expenses                3,444,162,535.86                     2,613,697,101.19
operation ("-" for losses)
operation ("-" for losses)
parent company
interests
comprehensive income                       165,065,173.42                         -19,081,558.37
 Net of tax from other comprehensive
 income to the owner of the parent                   163,224,093.52                         -18,536,172.71
 company
 cannot reclassified into the profit and             173,373,357.69                          11,707,013.25
 loss:
 indebtedness or net asset of defined
 benefit plans
 income that cannot be classified into
 profit and loss under equity method
 investments in other equity                         173,373,357.69                          11,707,013.25
 instruments
 company’s credit risks
 that will be reclassified into the profit            -10,149,264.17                        -30,243,185.96
 and loss
 income that will be classified into                  -12,402,376.19                        -29,576,301.94
 profit and loss under equity method
 investments in other debt obligations
 arising from the reclassification of
 financial assets
 investments in other debt obligations
 translation of foreign currency                        2,253,112.02                           -666,884.02
 financial statements
 Net of tax from other comprehensive
 income to non-controlling interests
 Total comprehensive income
 attributable to owners of the parent              10,528,607,375.32                     7,937,018,179.02
 company
 Total comprehensive income
 attributable to non-controlling                      47,046,902.53                         -18,837,350.46
 interests
 (1) Basic earnings per share                                   7.06                                  5.43
 (2) Diluted earnings per share                                 7.06                                  5.43
Legal representative:Liu Miao
Person in charge of accounting affairs:Xie Hong
Person in charge of accounting department:Yan Li
                                   Income statement of parent company
                                                                                           Monetary Unit: CNY
                 Item                           Year 2022                             Year 2021
Less: Cost of sales                                  6,178,065,196.37                       5,665,157,031.44
      Taxes and surcharges                              65,990,094.21                          48,515,753.23
     Selling and distribution
expenses
     General and administrative
expenses
     Research and Development
expenses
      Financial expenses                              -465,296,222.32                         -353,442,195.81
      Including:Interest expenses                      145,296,657.64                         156,432,933.96
                  Interest income                      613,452,430.61                         511,551,991.26
Plus: Other income                                      18,824,179.28                          32,634,508.70
      Investment income ("-" for
losses)
         Including: income from
investment in associates and joint                      45,123,842.50                         171,693,567.56
ventures
                    Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
       Net gain on exposure hedges
(“-” for losses)
     Gains from the changes in fair
                                                       -10,984,508.69                             6,352,241.79
values(“-“ for losses)
     Credit impairment losses (“-” for
                                                            -610,527.84                        80,203,108.29
losses)
     Asset impairment losses (“-” for
losses)
      Gains from disposal of assets("-"
for losses)
 Plus: non-operating income                             18,588,745.48                          15,646,393.45
 Less: non-operating expenses                           17,852,225.18                          61,173,017.79
total losses)                                        9,447,958,494.19                       7,962,753,060.83
 Less: income tax expenses                             408,118,536.71                         391,636,642.56
operation ("-" for losses)
operation ("-" for losses)
comprehensive income                                   160,970,981.50                          -17,869,288.69
cannot reclassified into the profit and                173,373,357.69                           11,707,013.25
loss:
indebtedness or net asset of defined
benefit plans
income that cannot be classified into
profit and loss under equity method
investments in other equity                              173,373,357.69                         11,707,013.25
instruments
company’s credit risks
that will be reclassified into the profit                -12,402,376.19                        -29,576,301.94
and loss
income that will be classified into                      -12,402,376.19                        -29,576,301.94
profit and loss under equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency
financial statements
(1) Basic earnings per share
(2) Diluted earnings per share
                                    Consolidated statement of cash flows
                                                                                           Monetary Unit: CNY
                  Item                            Year 2022                           Year 2021
activities
Cash received from sale of goods
and rendering of services
Net increase in customer bank
deposits and placement from banks
and other financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received from original
insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest, handling
charges and commissions
Net increase in placements from
other financial institutions
Net capital increase in repurchase
business
Net cash received from customer
brokerage deposits
Refunds of taxes and surcharges            96,229,396.25                           3,431,889.01
Cash received from other operating
activities
Subtotal of cash inflows from
operating activities                    26,877,272,861.82                    23,520,677,136.09
Cash paid for goods purchased and
services received
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and other banks and financial
institutions
Cash paid for original insurance
contract claims
Net increase in lending funds
Cash paid for interests, handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges       9,242,016,336.48                     6,428,760,153.55
Cash paid for other operating
activities
Subtotal of cash outflows from
operating activities                    18,614,624,592.10                    15,822,029,031.58
Net cash flows from operating
activities                               8,262,648,269.72                     7,698,648,104.51
activities
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and        66,239,957.85                           3,538,598.27
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities                     2,243,596,415.18                        41,893,415.77
Cash paid to acquire and construct
fixed assets, intangible assets and      1,035,165,351.11                     1,979,399,942.51
other long-term assets
Cash paid for investments                           3,082,285,380.80                          740,542,370.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities                                4,117,450,731.91                        2,719,942,312.51
Net cash flows from investing
activities                                         -1,873,854,316.73                        -2,678,048,896.74
activities
Cash received from investors                          670,224,927.99                             8,305,794.84
Including: cash received by
subsidiaries from investments by                           3,366,028.35                          8,305,794.84
minority shareholders
Cash received from borrowings                       4,700,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities                                5,372,133,945.09                             8,305,794.84
Cash paid for debt repayments                       2,500,000,000.00
Cash paid for distribution of
dividends and profits or payment of                 4,928,927,484.50                        3,168,553,209.93
interest
Including: dividends and profits paid
to minority shareholders by                            14,784,831.00
subsidiaries
Cash paid for other financing
activities
Subtotal of cash outflows from
financing activities                                7,450,522,397.49                        3,190,924,317.15
Net cash flows from financing
activities                                         -2,078,388,452.40                        -3,182,618,522.31
rate on cash and cash equivalents                      16,072,149.45                            -3,646,806.44
equivalents                                         4,326,477,650.04                        1,834,333,879.02
Plus: balance of cash and cash
equivalents at the beginning of the                13,402,528,941.83                       11,568,195,062.81
period
equivalents at the end of the                      17,729,006,591.87                       13,402,528,941.83
period
                                Cash flow statements of parent company
                                                                                           Monetary Unit: CNY
                Item                           Year 2022                              Year 2021
activities
Cash received from sale of goods                    7,836,045,120.10                        6,550,150,291.27
and rendering of services
Refunds of taxes and surcharges
Cash received from other operating
activities
Subtotal of cash inflows from
operating activities
Cash paid for goods purchased and
services received
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges        700,305,299.72                        540,331,615.01
Cash paid for other operating
activities
Subtotal of cash outflows from
operating activities                     7,391,058,039.49                     5,700,810,899.00
Net cash flows from operating
activities                               1,078,761,756.31                     1,474,636,557.83
activities
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and        50,809,694.44                           1,087,162.03
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities                    10,009,143,820.80                     6,335,588,617.33
Cash paid to acquire and construct
fixed assets, intangible assets and        92,415,078.78                          19,211,172.69
other long-term assets
Cash paid for investments                2,982,285,380.80                       740,542,370.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities                     3,074,700,459.58                       759,753,542.69
Net cash flows from investing
activities                               6,934,443,361.22                     5,575,835,074.64
activities
Cash received from investors              666,858,899.64
Cash received from loans                 4,700,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities                     5,477,857,928.36
Cash paid for debt repayments            2,500,000,000.00
Cash paid for distribution of
dividends and profits or payment of
   interest
   Cash paid for other financing
   activities
   Subtotal of cash outflows from
   financing activities                                               9,438,624,817.35                                5,156,538,863.24
   Net cash flows from financing
   activities                                                        -3,960,766,888.99                               -5,156,538,863.24
   rate on cash and cash equivalents                                          469,950.14                                        -943.95
   equivalents                                                        4,052,908,178.68                                1,893,931,825.28
   Plus: balance of cash and cash
   equivalents at the beginning of the                              12,938,983,758.82                                11,045,051,933.54
   period
   equivalents at the end of the                                    16,991,891,937.50                                12,938,983,758.82
   period
                          Consolidated statement of changes in owners' equity
                                          For the year ended 31 December 2022
                                                                                                                     Monetary Unit: CNY
                                                                         Year 2022
                                          Equity attributable to owners of the parent company
                           Other equity                          Othe                                                         Non-
                           instruments                   Less      r                                                                  Total
                                                                                             Gene                             contr
   Item        Shar                             Capit     :      Com       Spec      Surpl           Undi                             owne
                                                                                               ral                            ollin
                 e                                al     Trea    preh       ial       us             strib    Othe    Subt             rs'
                       Prefe                                                                  risk                              g
               capit           Perp             reser    sury    ensiv     reser     reser           uted      r      otal            equit
                       rred            Othe                                                  reser                            inter
                al             etual             ve      stoc      e        ve        ve             profit                             y
                       stoc             r                                                      ve                             ests
                               bond                        k     Inco
                         k
                                                                  me
as at 31       ,752,                             ,354,                               ,752,           7,860            0,247           7,261
December                                                         27,15                                                        4,116
of last year                                                      2.32                                                          .89
Plus:
adjustments
for changes
in
accounting
policies
Adjustment
s for
correction
of
accounting
errors in
prior year
Business
combination
s under
common
control
Others
as at 1                                                          167,5                                                        97,01
               ,752,                             ,354,                               ,752,           7,860            0,247           7,261
January of                                                       27,15                                                        4,116
the current    476.0                            665.7                                476.0           ,235.            ,005.           ,122.
year               0                                3                                   0               89              94                83
s/decrease
s in the       ,624.                             ,799,   21,99   24,09               ,624.           ,336,            ,624,   9,689   ,533,
current          00    803.2    8.78    3.52     00         978.0          124.0     .72   813.8
period (“-”
for                       6                                     9             9                  1
decreases)
(1) Total                              163,2                                       47,04
comprehen                              24,09                                       6,902
sive income                                                  ,281.         ,375.           ,277.
(2) Capital    7,142           639,0                                       412,9   8,242   421,1
contributed            ,799,
or reduced     ,624.           21,99                                       20,42   ,468.   62,89
by owners        00             8.78                                        8.48     77     7.25
Capital        7,142   654,1   661,2                                               3,366   3,366
contribution   ,624.   41,64   84,27                                          0    ,028.   ,028.
s by owners
Capital
contribution
s by other
equity
instruments
holders
Amounts of
share-                             -
based                  390,6                                               412,9   4,876   417,7
payments               58,15                                               20,42   ,440.   96,86
recognized                     2,274
in owners'                       .40
equity
Others
                                                                 -             -                 -
(3) Profit                                                                         31,37
distribution                                   ,624.         ,061,         ,919,           ,298,
                                                                                     .58
Withdrawal                                     7,142
of surplus                                     ,624.
reserves                                                     ,624.
Withdrawal
of general
risk reserve
Profit                                                           -             -                 -
distributed                                                 4,773          4,773           4,805
to owners                                                                          31,37
(or                                                          ,919,         ,919,           ,298,
shareholder                                                 306.5          306.5           988.1
s)                                                                                   .58
Others
(4) Internal
carry-
forward of
owners'
equity
Conversion
of capital
reserves
into paid-in
capital
Conversion
of surplus
reserves
into paid-in
capital
Surplus
reserves
offsetting
losses
Carry-
forward of
retained
earnings
from
changes in
defined
benefit
plans
Carry-
forward of
retained
earnings
from other
comprehen
sive income
Others
(5) Special
reserves
Withdrawal
for the
period
Use for the
period
(6) Others
as at 31                                                 639,0   330,7                                                        120,9
December       ,895,                             ,154,                               ,895,           2,197            7,871           8,794
of the                                                   21,99   51,24                                                        23,80
current                                                   8.78    5.84                                                         6.61
year               0                                9                                   0               98              03              64
                                          For the year ended 31 December 2021
                                                                                                                     Monetary Unit: CNY
                                                                         Year 2021
                                          Equity attributable to owners of the parent company
                           Other equity                          Othe                                                         Non-
                           instruments                   Less      r                                                                  Total
                                                                                             Gene                             contr
   Item        Shar                             Capit     :      Com       Spec      Surpl           Undi                             owne
                                                                                               ral                            ollin
                 e                                al     Trea    preh       ial       us             strib    Othe    Subt             rs'
                       Prefe                                                                  risk                              g
               capit           Perp             reser    sury    ensiv     reser     reser           uted      r      otal            equit
                       rred            Othe                                                  reser                            inter
                al             etual             ve      stoc      e        ve        ve             profit                             y
                       stoc             r                                                      ve                             ests
                               bond                        k     Inco
                         k
                                                                  me
as at 31       ,752,                             ,777,                               ,752,           6,513            4,858           1,869
December                                                         63,32                                                        11,32
of last year                                                      5.03                                                         1.12
Plus:
adjustments
for changes
in
accounting
policies
Adjustment
s for
correction
of
accounting
errors in
prior year
Business
combination
s under
common
control
Others
as at 1                        186,0                                       107,0
               ,752,   ,777,           ,752,        6,513          4,858           1,869
January of                     63,32                                       11,32
the current    476.0   063.1           476.0         ,212.         ,552.           ,873.
year              0       3               0            43            59              71
s/decrease                         -                4,951          4,965       -   4,955
s in the               32,57
current                7,602
period (“-”                    6,172                023.4          453.3   ,204.   249.1
                         .60
for                              .71                    6             5      23          2
decreases)
                                   -                7,955          7,937       -   7,918
(1) Total                      18,53                 ,554,         ,018,   18,83   ,180,
comprehen
sive income                    6,172                351.7          179.0   7,350   828.5
                                 .71                    3             2      .46         6
(2) Capital            32,57                                       32,57   8,840   41,41
contributed
or reduced             7,602                                       7,602   ,146.   7,748
by owners                .60                                         .60     23      .83
Capital                                                                    8,305   8,305
contribution                                                               ,794.   ,794.
s by owners
Capital
contribution
s by other
equity
instruments
holders
Amounts of
share-
based                  32,57                                       32,57           33,11
payments               7,602                                       7,602           1,953
recognized                                                                 51.39
                         .60                                         .60             .99
in owners'
equity
Others
                                                         -             -                 -
(3) Profit
distribution                                         ,207,         ,207,           ,207,
Withdrawal
of surplus
reserves
Withdrawal
of general
risk reserve
Profit                                                   -             -                 -
distributed                                         3,004          3,004           3,004
to owners
(or                                                  ,207,         ,207,           ,207,
shareholder                                         328.2          328.2           328.2
s)                                                      7             7                  7
Others
(4) Internal
carry-
forward of
owners'
equity
Conversion
of capital
reserves
into paid-in
capital
Conversion
of surplus
reserves
into paid-in
capital
Surplus
reserves
offsetting
losses
Carry-
forward of
retained
earnings
from
changes in
defined
benefit
plans
Carry-
forward of
retained
earnings
from other
comprehen
sive income
Others
(5) Special
reserves
Withdrawal
for the
period
Use for the
period
(6) Others
as at 31                                                             167,5                                                              97,01
December          ,752,                            ,354,                                 ,752,              7,860             0,247               7,261
of the                                                               27,15                                                              4,116
current                                                               2.32                                                                .89
year                  0                                3                                       0              89                   94                83
                          Statement of changes in owners' equity of parent company
                                             For the year ended 31 December 2022
                                                                                                                             Monetary Unit: CNY
                                                                             Year 2022
                                Other equity instruments                            Other
                                                                        Less:      Compr           Specia   Surplu
     Item                                                  Capital                                                       Undistr                  Total
                    Share      Preferr   Perpet                         Treasu     ehensi             l       s
                                                           reserv                                                        ibuted     Other       owners
                    capital      ed       ual      Other                   ry        ve            reserv   reserv
                                                             e                                                            profit                ' equity
                               stock     bond                            stock     Incom             e        e
                                                                                      e
at 31
December of         52,476.                                66,108.                 2,013.8                  52,476.      792,77                  535,84
last year                 00                                   27                          6                        00      5.01                   9.14
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Others
at January 1      52,476.   66,108.             2,013.8          52,476.   792,77           535,84
of the
current year          00        27                   6               00      5.01             9.14
ecreases in                 1,049,9   639,02    160,97                     4,258,7          4,844,9
the current       7,142,6                                        7,142,6
period (“-”                 37,043.   1,998.7   0,981.5                    78,026.          49,301.
for                             38         8         0                         93               03
decreases)
(1) Other                                       160,97                     9,039,8          9,200,8
comprehensiv                                    0,981.5                    39,957.          10,938.
e income
(2) Capital                 1,049,9   639,02                                                418,05
contributed or    7,142,6
reduced by                  37,043.   1,998.7                                               7,668.6
owners                          38         8                                                        0
Capital                     654,14    661,28
contributions               1,649.1   4,273.1                                                       0
by owners          24.00
Capital
contributions
by other
equity
instruments
holders
Amounts of
share-based                 395,79          -                                               418,05
payments
recognized in               5,394.2   22,262,                                               7,668.6
owners'                          0    274.40                                                        0
equity
Others
                                                                                 -                  -
(3) Profit                                                       7,142,6   4,781,0          4,773,9
distribution                                                      24.00    61,930.          19,306.
Withdrawal of                                                                    -
surplus                                                                    7,142,6
reserves                                                          24.00
                                                                                 -                  -
Profit
distributed to                                                             4,773,9          4,773,9
owners (or                                                                 19,306.          19,306.
shareholders)
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal
for the period
Use for the
period
(6) Others
at 31             1,471,8                               4,789,6   639,02    328,54             1,471,8   23,131,           30,554,
December of       95,100.                               03,151.   1,998.7   2,995.3            95,100.   570,80             485,15
the current
year
                                          For the year ended 31 December 2021
                                                                                                             Monetary Unit: CNY
                                                                     Year 2021
                             Other equity instruments                        Other
                                                                  Less:     Compr     Specia   Surplu
     Item                                               Capital                                          Undistr             Total
                  Share     Preferr   Perpet                      Treasu    ehensi       l       s
                                                        reserv                                           ibuted    Other   owners
                  capital     ed       ual      Other                ry       ve      reserv   reserv
                                                          e                                               profit           ' equity
                            stock     bond                         stock    Incom       e        e
                                                                               e
at 31
December of       52,476.                               16,950.             1,302.5            52,476.   883,68             646,88
last year             00                                    12                    5                00       5.01              9.68
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Others
at January 1
of the            52,476.                               16,950.             1,302.5            52,476.   883,68             646,88
current year          00                                    12                    5                00       5.01              9.68
ecreases in                                                                       -                      4,566,9           4,581,8
the current                                             32,849,
period (“-”                                                                 17,869,                      09,090.           88,959.
for                                                                         288.69                           00                 46
decreases)
(1) Other                                                                         -                      7,571,1           7,553,2
comprehensiv                                                                17,869,                      16,418.           47,129.
e income
(2) Capital
contributed or                                          32,849,                                                            32,849,
reduced by                                              158.15                                                              158.15
owners
Capital
contributions
by owners
Capital
contributions
by other
equity
instruments
holders
Amounts of
share-based
payments                    32,849,                                               32,849,
recognized in               158.15                                                158.15
owners'
equity
Others
                                                                       -                  -
(3) Profit                                                       3,004,2          3,004,2
distribution                                                     07,328.          07,328.
Withdrawal of
surplus
reserves
                                                                       -                  -
Profit
distributed to                                                   3,004,2          3,004,2
owners (or                                                       07,328.          07,328.
shareholders)
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal
for the period
Use for the
period
(6) Others
at 31             1,464,7   3,739,6   167,57           1,464,7   18,872,          25,709,
December of       52,476.   66,108.   2,013.8          52,476.   792,77           535,84
the current
year
Luzhou Laojiao Co., Ltd. (hereinafter referred to as "Company" or "the Company"), formerly known as
Luzhou Laojiao Brewery, was established in March 1950. On 20 September 1993, Luzhou Laojiao
brewery established a joint-stock limited company with fund-raising exclusively from its operational
assets. On 25 October 1993, the public offering of shares was approved by Sichuan Provincial People's
Government and CSRC with two documents of ChuanFuHan (1993) No.673 and FaShenZi (1993)
No.108. After the offering, the total share capital was 86,880,000 shares, which were listed and traded
in Shenzhen stock exchange on 9 May 1994.
As the end of 31 December 2004, the Company's total share capital reached 841,399,673 shares after
multiple rights issues, among which the controlling shareholder, State Assets Management Bureau of
Luzhou (later renamed as State-owned Assets Supervision and Administration Commission of Luzhou,
hereinafter referred to as "SASAC of Luzhou") held 585,280,800 shares of the Company, with a
shareholding ratio of 69.56%.
On 27 October 2005, the Company implemented the non-tradable share reform. After the
implementation, the total share capital remained unchanged, and the shareholding ratio of SASAC of
Luzhou decreased from 69.56% to 60.43%.
In November 2006, the Company implemented private placement, and the total share capital increased
from 841,399,673 shares to 871,399,673 shares. The shareholding ratio of SASAC of Luzhou
decreased from 60.43% to 58.35%.
As the end of 27 February 2007, SASAC of Luzhou sold 42,069,983 shares of the Company, and after
the sale, it still held 466,375,156 shares of the Company, with its shareholding ratio reduced to 53.52%.
On 19 May 2008, the Company increased 522,839,803 shares of capital stock resulting from capital
reserve and undistributed profits transferred to increase capital stock. After the implementation, the total
share capital reached 1,394,239,476 shares, among which, SASAC of Luzhou held 746,200,250 shares
of the Company, and the shareholding ratio was still 53.52%.
On 3 September 2009, the 300,000,000 shares and the 280,000,000 shares held by SASAC of Luzhou
were separately transferred to Luzhou Laojiao Group Co., Ltd. (hereinafter referred to as the "Laojiao
Group") and Luzhou XingLu Investment Group Co., Ltd. (hereinafter referred to as the "Xinglu Group").
After the transfer, Laojiao Group, Xinglu Group, and SASAC of Luzhou respectively held 300,000,000
shares, 280,000,000 shares and 166,200,250 shares. So far, Laojiao Group became the first majority
shareholder and SASAC of Luzhou was the actual controller.
From 6 June 2012 to 20 November 2013, the first and second phases of the Company's equity
incentive plan were exercised. After the exercise, the total share capital of the Company was changed
to 1,402,252,476 shares.
On 10 April 2014 and 18 July 2016, SASAC of Luzhou transferred 81,088,320 shares and 84,000,000
shares to Laojiao Group and Xinglu Group respectively. In addition, Laojiao Group has increased its
equity stake through the secondary market of 13,137,100 shares. So far, Laojiao Group, Xinglu Group
and SASAC of Luzhou held 394,225,489 shares, 365,971,142 shares and 1,111,930 shares
respectively, with the shareholding ratios of 28.11%, 26.10% and 0.08% respectively.
On 23 August 2017, the Company issued CNY 62,500,000 ordinary shares (A shares) privately, raising
a total capital of CNY 3,000,000,000. After the additional issuance, the total capital stock of the
Company was changed to 1,464,752,476 shares. In addition, from 2017 to 2018, Laojiao Group
decreased 13,137,100 shares that were increased through the secondary market from April 2014 to
December 2015. After share reduction, Laojiao Group, Xinglu Group and SASAC of Luzhou held
ratios of 26.02%, 24.99% and 0.08% respectively. Laojiao Group still was the first majority shareholder
and SASAC of Luzhou still was the actual controller.
In February 2022, the registration of 6,862,600 shares of the Restricted Share Incentive Plan granted
by the Company for the first time were completed; in September 2022, the Company granted 342,334
shares of the Restricted Share Incentive Plan for the second time; in September 2022, with seven
awardees no longer eligible, the Company decided to repurchase and retire the 62,310 restricted
shares of them which had been granted but not lifted from restricted sales; so far, the above grant and
repurchase of the Restricted Share Incentive Plan had all been registered and the total shares of the
Company changed to 1,471,895,100 shares. The grant and repurchase of the Restricted Share
Incentive Plan this year caused no changes in the controlling shareholders and the actual controller of
the Company.
Registered address and headquarter address of the Company are located in Sichuan Luzhou Laojiao
Square and company type is other incorporated company (Listed).
Industry of the Company is the baijiu subdivision industry of the liquor and wine, beverage and refined
tea production industry.
The main activity are research and development, production and sales of “National Cellar
The main products are: “National Cellar 1573 Series”, ”Century-old Luzhou Laojiao Jiaoling
Series” , ”Luzhou Laojiao Tequ”, ”Touqu”, ”Hey Guys” and other baijiu series.
The controlling shareholder is Luzhou Laojiao Group Co., Ltd.; the ultimate substantive control is
SASAC of Luzhou.
The financial report is approved and submitted by the board of directors of the Company on 28 April
(1) The 27 subsidiaries included in the consolidated financial statements for the current period
are listed as follows:
                                                                                        Shareholding proportion(%)
                      Name of subsidiary                         Abbreviation             Direct          Indirect     Voting rights (%)
Luzhou Laojiao Brewing Co., Ltd.                              Brewing Company                 100.00                              100.00
Luzhou Red Sorghum Modern Agricultural Development              Red Sorghum
Co., Ltd.                                                        Company
Luzhou Laojiao Sales Co., Ltd.                                 Sales Company                  100.00                              100.00
Luzhou Laojiao Nostalgic Liquor Marketing Co., Ltd.          Nostalgic Company                                100.00              100.00
                                                               Custom Liquor
Luzhou Laojiao Custom Liquor Co., Ltd. Note 1                                                                  15.00                60.00
                                                                 Company
Luzhou Laojiao Selected Supply Chain Management Co.,
                                                             Selected Company                                 100.00              100.00
Ltd.
                                                              Guangxi Imported
Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd.                                                     100.00              100.00
                                                               Liquor Industry
Luzhou Dingli Liquor Industry Co., Ltd.                        Dingli Company                                 100.00              100.00
Luzhou Dingyi Liquor Industry Sales Co., Ltd.                 Dingyi Company                                  100.00              100.00
                                                             New Liquor Industry
Luzhou Laojiao New Liquor Industry Co., Ltd.                                                                  100.00              100.00
                                                                 Company
Luzhou Laojiao I & E Co., Ltd.                                 I & E Company                                  100.00              100.00
Luzhou Laojiao Boda Liquor Industry Marketing Co., Ltd.        Boda Marketing                                  75.00                75.00
Luzhou Laojiao Bosheng Hengxiang Liquor Sales Co., Ltd.
                                                             Bosheng Hengxiang                                 75.00                75.00
Note 4
Luzhou Laojiao Fruit Wine industry Co., Ltd. Note 2          Fruit Wine Industry                               41.00                60.00
Mingjiang Co., Ltd.                                          Mingjiang Company                                 54.00                54.00
Luzhou Laojiao International Trade (Hainan) Co., Ltd.
                                                              Hainan Company                                  100.00              100.00
Note 5
Luzhou Pinchuang Technology Co., Ltd.                       Pinchuang Company                 100.00                              100.00
Luzhou Laojiao Tourism Culture Co., Ltd. Note 4                Tourism Culture                100.00                              100.00
Luzhou Laojiao International Development(Hong Kong)
                                                            Hong Kong Company                  55.00                                55.00
Co., Ltd.
Luzhou Laojiao Commercial Development (North America)           North America
Co., Ltd.                                                         Company
                                                            Electronic Commerce
Luzhou Laojiao Electronic Commerce Co., Ltd.                                                   90.00                                90.00
                                                                  Company
Luzhou Laojiao Whitail Liquor Industry Co., Ltd. Note 3     Whitail Liquor Industry                            35.00                60.00
Luzhou Baonuo Biotechnology Co., Ltd.                       Baonuo Biotechnology              100.00                              100.00
Luzhou Laojiao Health Liquor Industry Co., Ltd.             Health Liquor Industry            100.00                              100.00
Luzhou Laojiao Health Sales Co., Ltd.                           Health Sales                                  100.00              100.00
Luzhou Laojiao New Retail Co., Ltd.                         New Retail Company                 40.00          100.00              100.00
                                                                Technology
Luzhou Laojiao Technology Innovation Co., Ltd. Note 5                                          40.00           60.00              100.00
                                                            Innovation Company
Note 1: Although the Company holds less than 51% of the equity of Custom Liquor Company, among the five members
of the board of directors, the Company has sent three people. The Company has actual control over Custom Liquor
Company, so it is included in the scope of consolidation.
Note 2: Although the Company holds less than 51% of the equity of Fruit Wine Industry, among the five members of the
board of directors, the Company has sent three people, and the chairman of the board (legal representative) is the
director sent by the Company. The Company has actual control over Fruit Wine Industry, so it is included in the scope of
consolidation.
Note 3: Although the Company holds less than 51% of the equity of Whitail Liquor Industry, among the five members of
the board of directors, the Company has sent three people. The Company has actual control over Whitail Liquor Industry
and its subsidiaries, so it is included in the scope of consolidation.
Note 4: The subsidiary Luzhou Laojiao Tourism Culture Co., Ltd. and Luzhou Laojiao Bosheng Hengxiang Liquor Sales
Co., Ltd. completed business and tax cancellation in June 2022.
Note 5: Luzhou Laojiao International Trade (Hainan) Co., Ltd. and Luzhou Laojiao Technology Innovation Co., Ltd. were
newly established in December 2022.
Details of the subsidiaries incorporated into the consolidated financial statements show on “7.1.
Interests in subsidiaries”
(2) Subsidiaries that are newly incorporated into the scope of consolidation in this period
                      Name of subsidiary                                                Reason
Luzhou Laojiao International Trade (Hainan) Co., Ltd.                       Incorporated through investment
Luzhou Laojiao Technology Innovation Co., Ltd.                              Incorporated through investment
(3) Liquidation and cancellation for subsidiaries in this period
                    Name of subsidiary                                                   Reason
Luzhou Laojiao Bosheng Hengxiang Liquor Sales Co., Ltd.                          Liquidation cancellation
Luzhou Laojiao Tourism Culture Co., Ltd.                                         Liquidation cancellation
Details of changes in the scope of consolidation show on “6.5. Changes in consolidated scope for other
reasons”.
The Company has prepared its financial statements on a going concern basis, and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (the following called the ASBE) issued by Ministry of
Finance, and Rules on Company Information Disclosure and Preparation of Publicly Issued Securities
No.15- General Rules on Financial Reporting Rules (2014 Revision) issued by CSRC.
The Company’s business activities have adequate financial support. Based on the current information
obtained by the Company, comprehensively considering factors such as macro-policy risk, market
operation risk, current or long-term profitability, debt repayment ability of the Company, as well as its
resource of financial support, the Company believes that it is reasonable to prepare the financial
statements on a going concern basis and there are no events or situations resulting in significant
doubts over going concern for at least 12 months.
Tips on specific accounting policies and accounting estimates:
N/A
The financial statements of the Company have been prepared in accordance with ASBE, and present
truly and completely, the financial position and the Company’s and results of operations, changes in
shareholders’ equity and cash flows. In addition, in all material respects, the financial statements of the
Company comply with disclosure requirements of the financial statements and their notes in
accordance with Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2014.
The Company adopts the calendar year as its accounting year, i.e. from 1st January to 31st December.
The Company’s business cycle is 12 months.
The Company has adopted China Yuan (CNY) as functional currency.
common control and business combinations not involving enterprises under
common control
(1) Business combination under common control
Assets and liabilities obtained by the Company from the combine through business combination under
common control shall be measured at the book value as stated in the consolidated financial statements
of ultimate controlling party at the combination date. The share of the book value of the merged party’s
owner’s equity in the consolidated financial statements is taken as the initial investment cost of long-
term equity investments in individual financial statements. The capital reserve (stock premium or capital
premium) is adjusted according to the difference between the book value of net asset acquired through
combination and the book value of consideration paid for the combination (or total par value of shares
issued). If the capital reserve (stock premium or capital premium) is insufficient to offset, the retained
earnings shall be adjusted.
(2) Business combination not under common control
Assets paid, liabilities incurred or assumed and the equity securities issued as consideration for
combination shall be measured based on fair value on the acquisition date, the difference between fair
value and its book value shall be included in current profit and loss. The Company shall recognize the
difference of the combination costs in excess of the fair value of the net identifiable asset acquired from
the acquiree through combination as goodwill. After the review, if the combination costs are still in short
of the fair value of the net identifiable asset acquired from the acquiree through combination, include
the difference in the current profit and loss.
Fees, commissions, and other transaction expenses paid on issuance of equity securities as
combination consideration in the business combination shall be included in the initial measurement
amount of equity securities.
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control, and all subsidiaries
controlled are included in the consolidation scope of the consolidated financial statements.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the parent company with other relevant information. When preparing
consolidated financial statement, the Company considers the Group as an accounting entity, adopts
unified accounting policies, and applies the requirements of ASBE related to recognition, measurement
and presentation to reflect the Group’s financial position, operating results and cash flows.
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company, the financial statements of
the subsidiary, upon preparation of consolidated financial statements, shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control, the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the date of
purchase. For the subsidiary acquired from the business combination under common control, its assets
and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) shall be adjusted on the basis of the book value in the consolidated statements of the
ultimate controlling party.
The portion of a subsidiary’s equity, the current net profit and loss of subsidiaries, and the current
comprehensive income attributable to non-controlling interests shall be separately presented as non-
controlling interests in consolidated balance sheet within owners' equity, below the net profit line item
and below the total comprehensive income line item in the consolidated income statement respectively.
When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceeds
the balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of the
subsidiary, the excess shall be allocated against the non-controlling interests.
Acquisition of subsidiaries or business
During the reporting period, if the Company acquires subsidiaries from the business combination under
common control, the opening balance in the consolidated balance sheet shall be adjusted. The income,
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time, the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons, the parties involved in the combine shall be deemed to adjust in
the current state when the ultimate controlling party starts to control them. For the equity investment
before obtaining control of the investee, the recognized relevant profit or loss and other comprehensive
income and other changes in net assets between the later of acquisition date of previous equity and the
date on which both the investor and the investee are under common control and the combination date
shall respectively write-down the beginning retained earnings or current profits and losses during the
period of comparative information.
During the reporting period, if the Company acquires subsidiaries from the business combination not
under common control, the opening balance in the consolidated balance sheet shall not be adjusted.
The income, expenses and profits of the newly acquired subsidiaries from the acquisition date to the
end of the reporting period shall be included in the consolidated income statement. The cash flows of
the newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be
included in the consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons, the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date, and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method, any other
comprehensive income previously recognized              and other equity changes (excluding other
comprehensive, net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place, except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.
Disposal of subsidiaries and business
General treatments
During the reporting period, if the Company disposes subsidiaries, the income, expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be
included in the consolidated statement of cash flows.
In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons, the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
value of the remaining equity, minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill, the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related to
the former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and
loss, other comprehensive income and profit distribution shall be transferred to investment income for
the current period when control is lost. Other comprehensive income resulting from changes in net
liabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.
Disposal of subsidiaries by step
If the Company loses control of a subsidiary is through multiple transactions by steps, the terms,
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
a.These arrangements were entered into at the same time or in contemplation of each other;
b.These arrangements work together to achieve an overall commercial effect;
c.The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
d.One arrangement alone is not economically justified, but it is economically justified when considered
together with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of control
belong to a package transaction, the Company shall account for as a transaction; However, the
difference between each disposal consideration received and the corresponding proportion of the
subsidiary’s net assets before the loss of control shall be recognized as other comprehensive income in
the consolidated financial statements and transferred into the profit and loss of the current period when
the control is lost.
If the transactions from the disposal of the equity investment of the subsidiary to the loss of control are
not considered as a package transactions, the accounting treatment shall be conducted according to
the relevant policies on the partial disposal of the equity investment of the subsidiary where control is
retained before the loss of control. When the control is lost, the disposal shall be accounted for
according to the general treatment.
Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment result from acquisition of
non-controlling shareholders and the share of net assets of the subsidiary calculated continuously from
the acquisition date or combination date based on newly shareholding proportion shall be adjusted to
equity (share) premium of capital reserves in the consolidated balance sheet. If the capital reserve is
insufficient, any excess shall be adjusted against retained earnings.
Partial disposals of equity investment in subsidiaries without loss of control
When the Company disposes of a portion of a long-term equity investment in a subsidiary without loss
of control, the difference between disposal consideration and net assets of the subsidiary calculated
continuously since the acquisition date or the combination date related to the disposal of long-term
equity investment shall be adjusted to equity (share) premium of capital reserves in the consolidated
balance sheet. If the capital reserve is insufficient, any excess shall be adjusted against retained
earnings.
method of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture according to the structure,
legal form, agreed terms and other facts and conditions of a joint arrangement. A joint arrangement that
is structured through a separate vehicle is usually classified as a joint venture. However, when a joint
arrangement provides clear evidence that it meets any of the following requirements and complies with
applicable laws and regulations as a joint operation:
a. The legal form of the joint arrangement indicates that the parties that have joint control have rights to
the assets, and obligations for the liabilities, relating to the arrangement.
b. The terms of the joint arrangement specify that the parties that have joint control have the rights to
the assets, and the obligations for the liabilities, relating to the arrangement.
c. Other facts and circumstances indicate that the parties that have joint control have rights to the
assets, and the obligations for the liabilities, relating to the arrangement.
The parties that have joint control have rights to substantially all of the output of the arrangement, and
the arrangement depends on the parties that have joint control on a continuous basis for settling the
liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation, and
account for them in accordance with relevant accounting standards:
a. Its solely-held assets, and its share of any assets held jointly;
b. Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
c. Its revenue from the sale of its share of the output arising from the joint operation;
d. Its share of the revenue from sale of the output by the joint operation; and
e. Its solely-incurred expenses and its share of any expenses incurred jointly.
The Company shall only recognize the portion of the profit and loss attributable to other participants in
the joint venture, resulting from investment or sale of assets to the joint venture by the Company
(excluding those assets constituting the business), prior to the sale of such assets to a third party. The
Company shall fully recognize impairment loss when there is any impairment loss of invested or sold
assets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall only
recognize the part of the profit and loss attributable to other participants in the joint venture before
selling the assets and other assets purchased from the joint venture (excluding those assets
constituting the business) to a third party. When the impairment loss of the purchased assets is in
accordance with the ASBE No.8-Asset Impairment, the Company shall recognize such losses
according to its share. When the Company does not have common control over the joint venture, if the
Company enjoys the assets related to the joint venture and assumes the liabilities related to the joint
venture, the accounting treatment shall be conducted according to the above principles. Otherwise, the
accounting treatment shall be conducted in accordance with the relevant accounting standards.
When preparing the cash flow statement, the Company recognizes cash on hand and deposits that can
be readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3
months from purchase date), highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are not
recognized as cash and cash equivalents in the cash flow statement.
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company, the amount in the
foreign currency shall be translated into the amount in CNY currency at the spot exchange rate of the
transaction date. For the monetary items of foreign currencies, the translation is done according to spot
rate of the balance sheet date. The exchange difference generated from the difference of spot rate of
the current balance sheet date and the time of initial recognition of a foreign currency or the previous
balance sheet date is charged to the profit or loss of the current period except that the exchange
difference generated from foreign currency borrowings relating to assets of which the acquisition or
production satisfies the capitalization conditions is capitalized.
Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period,
the Company shall firstly translate the foreign currency into the amount in functional currency at the
spot exchange rate on the date when the fair value is determined, and then compare it with the original
functional currency amount. Difference between the translated functional currency amount and the
original functional currency amount is treated as profit or loss from changes in fair value (including
changes in exchange rate) and is recognized in current profit and loss. If there is a non-monetary item
of available-for-sale financial assets, the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
sheet date. Shareholders’ equity items, except for the item of "undistributed profits", are translated at
the spot exchange rates on the dates when the transactions occur. Revenue and expense items in the
income statement are translated at the spot exchange rates on the dates when the transactions occur
or at the exchange rate determined in a systematical and reasonable method and similar to the spot
exchange rate on the day when the transactions occur. Differences arising from the above translations
of foreign currency financial statements are separately listed under other comprehensive income in the
consolidated balance sheet. If the overseas business is partly disposed of, the foreign currency
financial statements exchange difference shall be calculated in proportion to the percentage of disposal
and transferred to gain or loss on disposal for the current period.
Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximate
exchange rate of spot rate on the date of cash flow.
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. When the Company becomes a party to a financial
instrument contract, the related financial asset or financial liability should be recognized.
(1) Classification, recognition and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics
of financial assets, the Company classifies financial assets into: financial assets measured at amortized
cost; financial assets measured at fair value with their changes included into other comprehensive
income; and financial assets measured at fair value with their changes included into current
profits/losses.
At the initial recognition, financial assets are measured at fair value. For financial assets measured at
fair value with their changes included into current profits/losses, the expenses involved in the
transaction are directly recorded into current profits/losses; for other financial liabilities, the expenses
involved in the transaction are recorded into the initially recognized amount.
The business model in which the Company manages financial assets measured at amortized cost aims
to receive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financial
assets are consistent with basic borrowing and lending arrangements, which means that cash flow
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial interests,
performs subsequent measurement of them at amortized cost, and includes the gains or losses from
derecognition, changes or impairment of them into current profits/losses.
The business model in which the Company manages such financial assets both aims to receive
contract cash flow and for the purpose of sale. Furthermore, the characteristics of the contract cash
flow of such financial assets are consistent with basic borrowing and lending arrangements. The
Company measure such financial assets at fair value and include their changes into other
comprehensive income, but record impairment losses or gains, exchange gains or losses and interest
income calculated in the effective interest method into current profits/losses.
At the initial recognition, the Company may specify non-trading equity instrument investment as a
financial asset measured at fair value with its changes included into other comprehensive income and
should recognize the dividend income according to regulations; the specification is irrevocable once
made. When the financial asset is derecognized, the cumulative gains or losses previously included into
other comprehensive income should be transferred into retained earnings.
For financial assets other than the above financial assets measured at amortized cost and financial
assets measured at fair value with their changes included into other comprehensive income, the
Company classifies them as financial assets measured at fair value with their changes included into
current profits/losses. In addition, at the initial recognition, the Company specifies partial financial
assets as financial assets measured at fair value with their changes included into current profits/losses,
in order to eliminate or substantially reduce accounting mismatch. For such financial assets, the
Company performs subsequent measurement using fair value and records changes in the fair value
into current profits/losses.
(2) Classification, recognition and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at fair value
with their changes included into current profits/losses and other financial liabilities. For financial
liabilities measured at fair value with their changes included into current profits/losses, the expenses
involved in the transaction are directly recorded into the current profits/losses. For other financial
liabilities, the expenses involved in the transaction are recorded into the initially recognized value.
Financial liabilities measured at fair value with their changes included into current profits/losses include
trading financial liabilities (including derivatives classified as financial liabilities) and the financial
liabilities specified to be measured at fair value with their changes included into current profits/losses at
the initial recognition.
Trading financial liabilities (including derivatives classified as financial liabilities) are subsequently
measured at fair value, with changes in fair value recorded into current profits/losses, except for those
related to hedge accounting.
For those specified as financial liabilities measured at fair value with their changes included into current
profits/losses, changes in the fair value of such liabilities caused by changes in the Company’s own
credit risk should be included into other comprehensive income. In derecognition of such liabilities,
cumulative changes in their value caused by the Company’s own credit risk that have been recorded
into other comprehensive income should be transferred into retained earnings. Other changes in their
fair value should be recorded into current profits/losses. If treatment of the impact of the Company’s
own credit risk changes of such financial liabilities in the above manner causes or expands accounting
mismatch in profits/losses, the Company will include all gains or losses of such financial liabilities
(including the amount of the impact of the Company’s own credit risk changes) into current
profits/losses.
Financial liabilities other than those formed from the transfer of financial assets not meeting
derecognition conditions or continuous involvement into transferred financial assets and those outside
financial guarantee contracts are classified as financial liabilities measured at amortized cost. Such
financial liabilities should be subsequently measured at amortized cost and the gains or losses from
derecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assets
If a financial asset meets any of the following conditions, it shall be derecognized: 1)The contractual
right for collecting the cash flow of the financial asset has been terminated; 2)The financial asset has
been transferred and almost all the risks and remunerations in respect of the ownership of the financial
asset has been transferred to the transferee; 3)The financial asset has been transferred, and although
the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset, it has abandoned its control over the asset.
If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset and does not abandon its control over the asset, the involved financial
asset shall be recognized according to the level of continuous involvement of the transferred financial
asset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement of
the transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
value of the financial asset.
If the overall transfer of the financial asset meets the recognition conditions, the difference between the
carrying value of the transferred financial asset as well as the consideration received from the transfer
and the cumulative amount of fair value changes originally-recorded into other comprehensive incomes
shall be recorded into the current profits/losses.
If partial transfer of the financial asset meets the recognition conditions, the carrying value of the
transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.
For a financial asset sold with the right of recourse or with the transfer of the financial asset
endorsement, the Company shall decide whether almost all the risks and remunerations in respect of
the ownership of the financial asset should be transferred. If they are transferred, the financial asset
shall be derecognized; if they are retained, the financial asset shall not be derecognized; if they are
neither transferred nor retained, the Company will continue to decide whether the enterprise should
retain control over the asset and perform the accounting treatment according to the principles stated in
previous paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved, the Company will
derecognize the financial liability (or the part of it). When the Company (borrower) signs an agreement
with a lender to replace an original financial liability in the form of bearing a new financial liability and
the contract terms for the new financial liability differ from those for the original in substance, the
original financial liability should be derecognized and the new one should be recognized. When the
Company makes substantial changes to the contract terms of an original financial liability (or a part of it),
the original financial liability should be derecognized and a new financial liability should be recognized
according to the amended contract terms.
When a financial liability (or a part of it) is derecognized, the Company will include the difference
between its carrying value and the consideration paid (including non-cash assets or liabilities borne that
are transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
When the Company has the legal right to offset recognized financial assets and financial liabilities and
may execute the legal right currently and simultaneously, the Company plans to settle or
simultaneously encash the financial assets in net amounts and pay off the financial liabilities, the
financial assets and the financial liabilities which are presented in the net amount after the mutual offset
in the balance sheet. Other than that, they shall be presented separately in the balance sheet without
the mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for selling an asset or transferring a
liability in an orderly transaction on the measurement date. For an existing financial instrument in an
active market, the Company adopts the quotations in the active market to determine its fair value.
Quotations in the active market refer to prices that can be easily obtained from exchanges, brokers,
industrial associations and pricing service institutions and represent the actual prices in the market
transactions happening in a fair trade. For a non-existing financial instrument in an active market, the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions, as well as references to the present fair value of other financial instruments of the
same nature, discounted cash flow method and options pricing model. In the valuation, the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support, chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions, and make
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values, unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after
the deduction of all liabilities. The Company’s issuance (including refinancing), repurchase, sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.
Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss, the Company treats financial assets measured at amortized cost
and debt instrument investment measured at fair value with its changes included into other
comprehensive income by impairment and recognizes the provision for loss.
Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received,
namely, the present value of all cash shortage. For a financial asset with credit impairment purchased
by or originated from the Company, it should be discounted by the effective interest rate after credit
adjustment to the financial asset.
For accounts receivable that do not contain significant financing components, the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.
For a financial asset other than those using the above simplified measurement, the Company assesses
on each balance sheet date whether its credit risk has substantially increased since the initial
recognition. If it has not and is in the first stage, the Company will measure the loss provision at the
amount equivalent to the expected credit loss for the next 12 months and calculate the interest income
according to the book balance and the effective interest rate; if it has substantially increased since the
initial recognition without credit impairment and is in the second stage, the Company will measure the
loss provision at the amount equivalent to the expected credit loss for the entire duration and calculate
the interest income according to the book balance and the effective interest rate; if credit impairment
has occurred since the initial recognition and is in the third stage, the Company will measure the loss
provision by the amount equivalent to the expected credit loss for the entire duration and calculate the
interest income according to the amortization cost and the effective interest rate. For financial
instruments with low credit risks on balance sheet dates, the Company assumes that their credit risks
have not substantially increased since the initial recognition.
The Company assesses expected credit losses of financial instruments based on individual and group
assessment. The Company considers the credit risk characteristics of different customers and
assesses the expected credit losses of accounts receivable and other receivables based on account
age portfolio. When assessing expected credit losses, the Company considers reasonable and well-
founded information on past matters, present conditions and forecast of future economic conditions.
When it no longer reasonably expects to recover all or part of the contract cash flow of financial assets,
the Company will directly write down the book balance of such financial assets.
The method of determining the expected credit loss of notes receivables and accounting treatment
method:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected
credit loss:
   Portfolio name                                        Provision method
Bank acceptance bill     The management evaluates that this type has low credit risk and its fixed bad
portfolio                debt provision ratio is 0%.
Trade acceptance         The provision for impairment is made according to the expected loss rate with
portfolio                the same portfolio classification of accounts receivables
The method of determining the expected credit loss of accounts receivables and accounting treatment
method:
As for accounts receivables, regardless of whether there is a significant financing component, the
Company always measures the provision for loss based on the amount equivalent to the expected
credit loss over the entire life, and the resulting increase or reversal of provision for loss shall be
included in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment,
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the accounts receivables portfolio according to credit
risk characteristics and measure the expected credit loss based on portfolios:
          Portfolio name                                      Provision method
Risk portfolio                       Expected credit loss
Other portfolio                      No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control, the recovery of which are controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the accounts receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate over the entire life based on the current situation and prediction of
future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
                                  Aging                                  Expected loss provision rate %
Within 1 year                                                                                              5
Over 5 years                                                                                            100
The accounts receivables financing of the Company refer to the notes receivables measured at fair
value through other comprehensive income on the balance sheet date. For more details, see Note 5.10
Financial instruments.
The method of determining the expected credit loss of other receivables and accounting treatment
method:
As for other receivables, regardless of whether there is a significant financing component, the Company
always calculates the expected credit loss through the exposure at default and expected credit loss rate
in the next 12 months or over the entire life based on the current situation and prediction of future
economic situation consulting historical credit loss experience, and the resulting increase or reversal of
provision for loss shall be included in the current profit or loss as gains or losses on impairment. The
accrual method is as follows:
(1) When there is objective evidence showing that the other receivable has incurred credit impairment,
the Company shall make bad debt provision for the other receivable and recognize the expected credit
loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the other receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios.
          Portfolio name                                     Provision method
Risk portfolio                       Expected credit loss
Other portfolio                      No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control, the recovery of which are controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the other receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate in the next 12 months or over the entire life based on the current
situation and prediction of future economic situation consulting historical credit loss experience. The
comparative table of the credit loss rate is as follows:
                                 Aging                                  Expected loss provision rate %
Within 1 year                                                                            5
Over 5 years                                                                            100
(1) Classification of inventory
Inventories are classified as: raw materials, goods in progress (including semi-finished goods), stock
commodities, and dispatched inventories.
(2) Measurement method of dispatched inventories
The standard cost is used for daily accounting of raw materials, and the difference of material cost
should be carried forward on a monthly basis to adjust the standard cost into the actual cost; The goods
in progress (including semi-finished goods) shall be accounted according to the actual cost, and the
weighted average method shall be used when they are received and delivered. The actual cost of the
inventory at the end of the month above shall be taken as the standard cost, and the delivery shall be
priced according to the standard cost. At the end of the month, the standard cost of the inventory at the
end of the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Basis to determine net realizable values of inventories and method of provision for stock
obsolescence
At the end of the period, inventory is measured according to the lower of cost and net realizable value.
The difference between inventory cost and net realizable value is higher than the provision for stock
obsolescence , which is recorded into current profit and loss. For inventories that are related to product
ranges produced and sold in the same district or used for the same or similar ultimate purpose and are
difficult to be measured separately from other inventories, the Company provides for stock
obsolescence as a whole. For inventories that have large quantities but low value, the Company
provides for stock obsolescence on a category basis.
The materials held for production shall be measured at cost if the net realizable value of the finished
products is higher than the cost. If a decline in the value of materials shows that the net realizable value
of the finished products is lower than the cost, the materials shall be measured at the net realizable
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Amortization method of packing materials and low-cost consumables
It is amortized in full at once.
The Company presents contract assets or contract liabilities on the balance sheet according to the
relationship between the fulfillment of its contract performance obligations and its customers’ payment.
Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customers
unconditionally (only depending on the passing of time) as accounts receivable. Refer to “The method
of determining the expected credit loss of accounts receivables and accounting treatment method” for
the detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
Contract costs comprise incremental costs incurred as the Company obtains a contract, and costs for
contract performance. Incremental costs incurred as the Company obtains a contract refer to those
costs which will not incur without entering into a contract (such as sales commission). If it is expected
that the costs are recoverable, the Company will recognize the costs incurred to obtain a contract as
one form of assets. In case that the term of asset amortization is shorter than one year or one normal
operating cycle, the costs will be recognized as profit and loss of the current period after occurrence.
If the costs incurred from contract performance fall outside the inventory or the scope of other
enterprise accounting standards and satisfy all of the following conditions, the Company will recognize
the costs for contract performance as assets: a) The costs are directly related to one existing contract
or contract that is expected to be obtained; b) The costs enrich the Company's resources for future
contract performance (including continual fulfillment); c) The costs are estimated to be recovered.
Assets recognized from costs incurred to obtain a contract and costs for contract performance
(hereinafter referred to as "assets related to contract costs") will be amortized based on the basis the
same with the income from commodities or services related to the assets, and will be recognized as
profit and loss of the current period. In case that the book value of assets related to contract costs is
higher than the difference of the two items below, the Company will set aside provisions for assets
impairment to deal with the extra part, and recognize that part as impairment losses: a) Estimated
residual consideration to be obtained from transfer of commodities or services related to the assets; b)
Estimated costs incurred from transfer of the relevant commodities or services.
(1) Classification of non-current assets held for sale or disposal groups
The Company shall classify the non-current assets or disposal group meeting the following conditions
into the held-for-sale category: The assets (or disposal group) must be available for immediate sale in
its present condition subject only to terms that are usual and customary for sales of such assets (or
disposal groups); Its sale must be highly probable.; The Company has already made a decision to
dispose the component and has a commitment from the purchaser, the transfer will be completed within
one year.
The non-current assets or disposal group acquired by the Company for resale shall be divided into the
held-for-sale category on the acquisition date if it meets the condition that "the sale is expected to be
completed within one year" and if it is likely to meet other conditions for the held-for-sale category within
a short period (usually three months).
Due to one of the following reasons that the Company is unable to control, leading to the transactions
uncompleted with non-related party within one year, and the Company still commits to sale non-current
assets or disposal groups, it can continue to account for non-current assets or disposal groups as held-
for-sale: the buyer or any other party accidentally set sale extension condition. The Company has to
take action in time according to these conditions and the extension problem is expected to be solved
within one year; In rare cases, the Company has taken the necessary steps and re-satisfy the hold for
sale category condition within the first year for the new circumstances which caused it unable to
complete the sale of the non-current assets or disposal group within one year.
(2) Measurement of non-current assets or disposal groups held for sale
a. Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently, the impairment loss should be recognized if the book value is
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss,
the provision for assets held for sale need to be recognized at the same time.
For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date,
they shall be measured as the lower of the initial measurement amount and the net amount after
deducting the selling expenses from the fair value under the assumption that it is not divided into held-
for-sale categories at the initial measurement. Except for the non-current assets or the disposal groups
obtained in the enterprise merger, the difference caused by the non-current assets or the disposal
groups taking the net amount after the fair value minus the selling expenses as the initial measurement
amount shall be recorded into the current profit and loss.
For the impairment of disposal group, it should write off goodwill if existing, and then write down the
related assets proportionally.
Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.
b. Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date
increases after the fair value minus the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized after being classified as the held-for-sale
shall be reversed, and the reversed amount shall be included in the current profit and loss. The
impairment loss recognized before the classification of the held-for-sale shall not be reversed.
If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized as non-current assets after being
classified as the held-for-sale shall be reversed, and the reversed amount shall be included in the
current profit and loss. The book value of the goodwill that has been written down and the impairment
losses recognized before the classification of the held-for-sale shall not be reversed.
The subsequent reversed amount of the impairment loss recognized by the disposal groups held for
sale shall be increased in proportion to the book value of non-current assets except goodwill in the
disposal groups.
c. The accounting treatment that does not continue to be classified as held-for-sale and the termination
of recognition
Non-current assets or disposal groups that are no longer divided into held-for-sale category or non-
current assets are removed from disposal groups held for sale because of no longer meeting the
condition of classification of held-for-sale, they are measured at lower of the following two: book value
before being classified as the held-for-sale considering depreciation, amortization or impairment that
should have been recognized under the assumption that it is not divided into held-for-sale categories;
and recoverable amount.
When terminating the recognition of the non-current assets held for sale or the disposal groups, the
unrecognized gains or losses shall be recorded into the current profit and loss.
N/A
N/A
For more details, see Note 5.10 Financial instruments.
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control with
other participants on an arrangement according to relevant conventions, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.
This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separate
entity and the Company is judged to have rights to the net assets of such a separate entity according to
the relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted by
the equity method. If the Company is judged to be not entitled to the net assets of the separate entity
according to relevant conventions, the separate entity shall be regarded as a joint venture and the
Company shall recognize the items related to the shares of the joint venture and perform accounting
treatment in accordance with relevant accounting standards.
The term ‘significant influence’ refers to the power to participate in decision-making on the financial and
operating policies of the investee, but with no control or joint control over the formulation of these
policies. The Company judges that it has a significant impact on the invested entity through one or more
of the following situations and taking all the facts and circumstances into consideration:
a. Dispatch representatives to the board of directors or similar authorities of the investee.
b. To participate in the financial and business policy making process of the investee.
c. Significant transactions with the investee.
d. Dispatch management personnel to the investee.
e. To provide key technical data to the investee.
(2) Determination of the initial investment cost
a. Long-term equity investment resulting from combination
Business combination under common control:
For the long-term equity investments obtained by cash paid, non-monetary assets paid or assumed
liabilities and the equity securities issued by the acquirer, on the merger date, the initial investment cost
of long-term equity investment shall be taken as the share of the owner's equity of the investee in the
book value of the final control party's consolidated financial statements. If the investee under business
combination under common control can be controlled due to additional investment or other reasons, the
initial investment cost of long-term equity investment shall be determined on the merger date according
to the share of the net assets of the investee in the book value of the final control party's consolidated
financial statements. The difference between the initial investment cost of the long-term equity
investment on the merger date and sum of the book value of the long-term equity investment before the
merger and the new consideration of acquiring shares on the merger date shall be recorded to adjust
the equity premium. If the equity premium is insufficient to be written down, the retained earnings shall
be written down.
Business combination not under common control:The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons, the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.
b. Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value as
the initial investment costs.
For the long-term equity investments acquired by the issue of equity securities, the initial investment
cost shall be the fair value of the equity securities issued.
For long-term equity investments obtained by non-monetary assets exchange, under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged
can be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assets
traded out, unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied, initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
taxes and surcharges payable.
For long-term equity investments obtained by debt restructuring, the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
a. Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method, except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
the investment, the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.
b. Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee, the
equity method is adopted for accounting. For long-term equity investments measured at the equity
method, if the initial investment costs are higher than the investor’s attributable share of the fair value of
the investee’s identifiable net assets, no adjustment will be made to the initial costs of the long-term
equity investments; if the initial investment costs are lower than the investor’s attributable share of the
fair value of the investee’s identifiable net assets, the difference shall be recognized in current profit and
loss.
The Company shall, according to the shares of net profits and other comprehensive income realized by
the investee that shall be enjoyed or borne by the Company, recognize the profit and loss on the
investments and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or
bear, the Company shall make a recognition and calculation based on the net book profits and losses of
the investee after appropriate adjustments. However, where the Company is unable to obtain the
relevant information due to failure to reasonably determine the fair value of the investee’s identifiable
assets, minor difference between the investee’s identifiable assets and the book value thereof or other
reasons, the profits or losses on the investments shall be directly calculated and recognized based on
the net book profits and losses of the investee. The Company shall calculate the part distributed from
cash dividends or profits declared by the investee and correspondingly reduce the book value of the
long-term equity investments. When recognizing the income from investments in associates and joint
ventures, the Company shall write off the part of incomes from internal unrealized transactions between
the Company and associates and joint ventures which are attributable to the Company and recognize
the profit and loss on investments on such basis. Where the losses on internal transactions between
the Company and the investee are impairment of related assets, full amounts of such losses shall be
recognized. Profit and loss from internal unrealized transactions between the Company’s subsidiaries
included into the combination scope and associates and joint ventures shall be written off according to
the above principles and the profit and loss on investments thereafter shall be recognized on such basis.
When the share of net loss of the investee attributable to the Company is recognized, it is treated in the
following sequence: Firstly, write off the book value of the long-term equity investments; where the book
value of the long-term equity investments is insufficient to cover the loss, investment losses are
recognized to the extent that book value of long-term equity which form net investment in the investee
in other substances and the book value of long-term receivables shall be written off; after all the above
treatments, if the Company still assumes additional obligation according to investment contracts or
agreements, the obligation expected to be assumed should be recognized as provision and included
into the investment loss in the current period. If the investee is profitable in subsequent accounting
periods, the Company shall treat the loss in reverse order against that described above after deducting
unrecognized share of loss: i.e. write down the book value of the recognized provision, then restore the
book value of long-term interests which substantially form net investments in the investee, then restore
the book value of long-term investments, and recognize investment income at the same time.
Investment property is the property that is held to earn rent or capital appreciation or both and can be
measured and sold separately. The Company’s investment property includes land use right already rent,
land use right held for appreciation and then sold, and buildings already rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investment
property and the cost of the investment property that can be measured reliably, the Company will
initially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directly
attributable to the asset;
The cost of self-built investment property consists of the necessary expenses incurred before the asset
reaches the intended use condition;
The cost of the investment property obtained by other means shall be recognized in accordance with
relevant accounting standards.
(2) Subsequent measurement
In general, the Company adopts the cost model to measure the follow-up expenditure of investment
property. The depreciation or amortization of investment property shall be carried out in accordance
with the accounting policies for the Company's fixed assets or intangible assets.
If there is solid evidence suggests that the investment property acquired can be measured at fair value
continuously and reliably, the Company can use fair value model for subsequent measurement. For the
investment property measured at fair value model, the Company does not provide depreciation or
amortization and adjusts its book value based on the fair value of investment property at the balance
sheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property, the relevant investment property will
be transferred to other assets.
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services,
renting or business management with useful life exceeding one accounting year. Fixed assets are
recognized when the following criteria are satisfied simultaneously: It is probable that the economic
benefits relating to the fixed assets will flow into the Company; the cost of the fixed assets can be
measured reliably.
(2) Depreciation of fixed assets
Except for fixed assets still in use after full depreciation, the Company depreciates all fixed assets and
calculates the depreciation in the straight-line depreciation method.
Based on the nature and use of fixed assets, the Company determines their service life and estimated
net salvage value and reviews their service life, estimated net salvage value and depreciation method
at the end of the year. Changes in the service life, estimated net salvage value and depreciation
method of the same type of assets are treated as changes in accounting estimation.
Impairment test method and impairment provision accrued method of fixed assets
At the end of the period, the fixed assets shall be measured at the lower of the book value and the
recoverable amount. If the recoverable amount of fixed assets is lower than the book value due to a
continuous decline in the market value, or technological obsolescence, damage, or long-term idleness,
a provision for impairment of the fixed assets shall be made for the difference between the recoverable
amount and the book value of individual fixed assets. If the recoverable amount of the individual asset
is difficult to estimate, the Company will determine the recoverable amount of the asset group based on
the asset group to which the asset belongs. The impairment losses on fixed assets must not be
reversed in subsequent accounting periods once recognized.
For fixed assets for which depreciation provision has been made, the depreciation rate and depreciation
amount shall be remeasured according to the book value of the fixed assets (the original price of fixed
assets minus accumulated depreciation and provision for impairment), and the remaining service life.
On the balance sheet date, the fixed assets shall be measured at the lower of the book value and the
recoverable amount. The category, estimated useful life, estimated residual value rate and annual
depreciation rate of fixed assets of the Company are as follows:
                                                                     Estimated              Annual
                         Depreciation      Estimated useful
     Category                                                      residual value       depreciation rate
                           method              life (Year)
                                                                      rate (%)                (%)
 Buildings and        Straight-line
 Constructions                            10-45                5%                      9.50-2.11
                      method
 Special              Straight-line
 equipment                                5-35                 5%                      19.00-2.71
                      method
 Universal            Straight-line
 equipment
                      method
 Transportation       Straight-line
 equipment                                6                    5%                      15.83
                      method
                      Straight-line
 Other equipment                          4-16                 5%                      23.75-5.94
                      method
(3) Recognition standard, valuation method and depreciation method for fixed assets acquired
under financing lease
A finance lease refers to a lease where almost all the risks and rewards, related to the ownership of the
leased asset, are substantially transferred, regardless of whether the ownership is eventually
transferred or not. The policy for the accrual of the depreciation of the leasehold property for the fixed
assets acquired under the finance lease was consistent with that adopted for the Company's fixed
assets. If there is reasonable assurance that the Company will obtain the ownership of the leased
assets when the lease term expires, the leased assets should be depreciated over its useful life; if there
is no reasonable assurance that the Company will obtain the ownership of the leased assets when the
lease term expires, the leased assets should be depreciated over the shorter of the lease term or the
useful life of the leased assets.
(1) Construction in progress refers to various construction and installation works carried out for the
construction or repair of fixed assets, including the actual expenditure incurred in new construction,
reconstruction and expansion, and the net value of fixed assets transferred from the reconstruction and
expansion projects.
(2) Construction in progress is accounted on an individual project basis with actual cost valuation
method. The borrowing costs incurred before the projects reach the intended use condition shall be
included in the project cost. The fixed assets shall be carried forward in the month when the project is
qualified for acceptance and delivery for use. For those that have reached the intended use condition
but have not yet completed the final account, from the date of reaching the intended use condition,
according to the project budget, construction cost or the actual cost of the project, the cost transferred
to the fixed assets shall be determined according to the estimated value, and the depreciation shall be
recognized; After the completion of the final account, the original provisional value shall be adjusted
according to the actual cost, but the amount of depreciation accrued shall not be adjusted.
(3) The loan interest and related expenses incurred during the construction period shall be capitalized
into the cost of the construction in Progress.
(4) On the balance sheet date, the construction in progress is recognized at the lower of book value and
recoverable amount.
(1) Scope of borrowing costs and its capitalization conditions
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expenses
directly attributable to the assets eligible for capitalization, including interest thereon, amortization of
discounts or premiums, ancillary expenses and exchange differences incurred from foreign currency
loan, etc.
Borrowing costs are capitalized when the following three conditions are met simultaneously: ① the
asset expenditure has occurred, ② the borrowing costs have occurred, ③ the purchase and
construction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment should be recognized as the capitalization amount of borrowing
costs. As for general loans used for acquiring and constructing or producing assets eligible for
capitalization, the interest of general loans to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements in excess of
special loans by the capitalization rate of used general loans. During the period of capitalization, the
capitalized amount of interest of each accounting period shall not exceed the current actual interest of
the relevant loans. Where there are discounts or premiums on loans, the amounts of interest for each
accounting period should be adjusted taking account of amortizable discount or premium amounts for
the period by effective interest method. Auxiliary expenses incurred from special loans before the
acquired or constructed assets eligible for capitalization reach the working condition for their intended
use or sale should be capitalized when they incur and charged to the costs of assets eligible for
capitalization; those incurred after the acquired or constructed assets eligible for capitalization reach the
working condition for their intended use or sale should be recognized as costs according to the
amounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
For a special loan for the purchase and construction of fixed assets, the capitalization rate is the
interest rate of the loan;
For more than one special loan for the acquisition and construction of fixed assets, the capitalization
rate is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months, the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period, and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used
or sold externally until overall completion, the capitalization of borrowing costs should cease at the time
of overall completion of the said assets.
N/A
N/A
Refer to Note 5.42 Lease for the detail.
(1) Measurement method, useful life, impairment test
Intangible assets refer to identifiable non-monetary assets that are owned or controlled by the Company
without a physical form.
Measurement method
a. Costs of intangible assets purchased include purchase price, related tax and expenses and other
expenditure that can be distributed to the asset directly to reach its expected use.
b. Intangible assets invested by investors shall be valued at the value agreed upon in the investment
contract or agreement;
c. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise, they shall be recorded into the current profit and loss when
they incur.
  i. It is technically feasible to finish intangible assets for use or sale;
  ii. It is intended to finish and use or sell the intangible assets;
  iii. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
  including being able to prove that there is a potential market for the products manufactured by
  applying the intangible assets or there is a potential market for the intangible assets themselves or
  the intangible assets will be used internally;
  iv. It is able to finish the development of the intangible assets, and able to use or sell the intangible
  assets, with the support of sufficient technologies, financial resources and other resources.
  v. The expenditure attributable to the intangible asset during its development phase can be
  measured reliably.
d. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions, the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than those should be capitalized during the credit period.
Useful life and amortization method
For intangible assets with limited useful life, amortization shall be carried out according to the straight-
line method within the period that brings economic benefits to the enterprise. At the end of each period,
the useful life and amortization method of intangible assets with limited service life shall be reviewed. If
there are differences with the original estimates, corresponding adjustments shall be made.
Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossible
to foresee the term in which intangible assets bring economic benefits to the enterprise. Intangible
assets with uncertain useful life shall not be amortized during the holding period, and the life of
intangible assets shall be reviewed at the end of each period. If it is still uncertain after the review at the
end of the period, the impairment test shall continue during each accounting period. At the end of each
period, the useful life of intangible assets with uncertain service life shall be reviewed.
Impairment test
On the balance sheet date, intangible assets are valued at the lower of book value and recoverable
amount.
(2) Internal research and development expenditure accounting policy
The expenditures incurred in the development stage of the internal research and development projects
shall be recognized as intangible assets when the following conditions are met; otherwise, they shall be
recorded into the current profit and loss when they occur.
a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet, and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
On the balance sheet date, the Company makes a judgment on whether there are signs of possible
impairment of long-term assets. If there are impairment indicators of non-current assets, the Company
estimates the recoverable amount based on individual asset. If recoverable amount of individual asset
is difficult to be estimated, the Company should recognize the recoverable amount of the asset group
which the individual asset belongs to.
The recoverable amount is the higher of fair values less costs of disposal and the present values of the
future cash flows expected to be derived from the asset.
If the measurement result of recoverable amount shows that recoverable amount of the non-current
assets is less than its book value, the book value shall be written down to the recoverable amount, and
the amount written down shall be recognized as the impairment loss of assets, recorded into the current
profit and loss, and the corresponding impairment provision of assets shall be made at the same time.
Once impairment loss stated above is recognized, reversal is not allowed in the subsequent accounting
periods.
After the recognition of the impairment loss, the depreciation or amortization expense of the impairment
asset shall be adjusted accordingly in the future period so as to systematically apportion the adjusted
book value of the asset (deducting the expected net salvage value) within the remaining service life of
the asset.
The Company should perform impairment test for goodwill and intangible assets with indefinite life at
least at each year end, no matter whether there is impairment indicator.
Goodwill shall be combined with its related asset group or asset group portfolio so as to perform an
impairment test. When the Company performs an impairment test on relevant asset group or asset
group portfolio including goodwill, if there are signs of impairment, the Company shall firstly perform an
impairment test on asset group or asset group portfolio excluding goodwill and calculate the
recoverable amount, and compare with the related book value, recognize the corresponding impairment
loss. Then, the Company performs an impairment test on relevant asset group or asset group portfolio
including goodwill, and compares the book value of the relevant asset groups or asset group portfolio
(including proportional book value of goodwill) with its recoverable amount. If the recoverable amount of
relevant asset group or asset group portfolio is less than its book value, the Company shall recognize
impairment loss of goodwill.
Long-term deferred expenses shall be initially measured according to the actual costs incurred. It is
amortized using the straight-line method over the beneficial period. If it cannot benefit the following
accounting period, the amortized value of the item that has not been amortized will be transferred to the
current profit and loss.
The recognition method of contract liabilities: The Company presents contract assets or contract
liabilities on the balance sheet according to the relationship between the fulfillment of its contract
performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of
transferring commodities or providing services to customers, as the Company has received or should
receive customers’ considerations, are presented as contract liabilities.
Employee benefits refer to the various forms of remuneration or compensation provided by the
Company in order to obtain services offered by employees or terminate an employment relationship.
Employee remuneration mainly includes short-term remuneration, post-employment benefits, dismissal
benefits, and other long-term employee welfare.
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the
reporting period in which the employee provided relevant services, excluding the compensation for
employment termination. Accrued short term benefits will be recognized as liability during the
accounting period in which the employee is providing the relevant service to the Company. The liability
will be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
a. Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.
b. Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method, the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
during in which the employee provides the service into the current profit and loss or the relevant assets
cost.
The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan, the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.
All defined benefit plan obligations, including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service, are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.
The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.
At the time of settlement of the defined benefit plan, the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances:
a. When the Company is not able to withdraw the benefits from termination of employment or
resignation persuasion unilaterally;
b. When the Company recognizes costs and fees relevant to reforming the termination benefits
payment.
As for the termination benefits that cannot be fully paid within 12 months after the end of the annual
report period, the Company shall choose an appropriate discount rate and record it into current profit
and loss based on it.
(4) Accounting treatment method of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-term benefits, post-
employment benefits and termination benefits.
Other long-term employee benefits provided by the Company to the employee that meet the conditions
of the defined contribution plan shall be treated in accordance with the same principles of the defined
contribution plan; If the conditions for defined benefits are met, net liabilities or net assets of other long-
term employee benefits shall be recognized and measured in accordance with the relevant principles of
the defined benefits plan.
Refer to the Note 5.42 Lease for details.
(1) Recognition criteria of estimated liabilities
If the contingent obligations meet the following conditions simultaneously, the Company shall recognize
it as an estimated liability:
This obligation is the Company's current obligation; the performance of this obligation is highly likely to
result in an outflow of economic benefits from the Company; The amount of the obligation can be
measured reliably.
(2) Measurement method of estimated liabilities
The Company's estimated liabilities are initially measured in terms of the best estimate of the
expenditure of fulfilling the relevant current obligations.
For determining the best estimate, the Company takes various factors into account such as the risk,
uncertainty and time value of money related to contingencies. If the time value of money has a
significant impact, the best estimate is determined by discounting the relevant future cash outflows.
The best estimate is processed as follows:
Where there is a continuous range (or range) of required expenditures and the probability of the
occurrence of various results within the range is same, the best estimate is determined according to the
mean of the middle value of the range, namely the mean value of the upper and lower limits.
Where there is no continuous range (or range) of required expenditures, or where there is a continuous
range but the possibility of various outcomes within the range is different, if the contingencies involve a
single item, the best estimate is determined according to the most likely amount; If the contingencies
involve more than one item, the best estimate is calculated and determined according to various
possible results and relevant probabilities.
Where all or part of the expenses required for the liquidation of the estimated liabilities of the Company
are expected to be compensated by a third party, the amount of compensation shall be recognized as
an asset when it is basically confirmed that it can be received, and the confirmed amount of
compensation shall not exceed the book value of the estimated liabilities.
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-
based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related with employees, the equity instrument is measured at
fair value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by
the Company.
For the fair value of the stock option granted, the fair value is determined by using the stock option
pricing model, and the following factors are taken into account: the current price of the underlying
shares, the exercise price of the option, the risk-free interest rate within the period of the option, the
option life, and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant, the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date, and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.
For the equity-settled share-based payment, in which the services during waiting period are completed
and the performance conditions are met, in return for services of employees, on each balance sheet
date during waiting period, the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date, based on best estimate of the number of vested equity instruments, and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period, the
Company makes the best estimate based on the latest available employee number change and other
subsequent information, and modifies the number of equity instruments for the estimated vesting. On
the vesting date, the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implement, modification and termination of share-based payment
plan
For equity-settled share-based payment, no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date, the Company shall recognize the share
capital and the equity premium according to the exercise situation, and carry forward the capital reserve
recognized in the waiting period.
No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement, the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures obtained the corresponding services, unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
N/A
(1) Basic principles of revenue identification
The Company recognizes revenue when it has fulfilled the performance obligations under the contract,
that is, when the customers obtain the control of relevant goods or services, at the transaction price
allocated to the performance obligations.
Performance obligations refer to the Company's promise that it will transfer clearly distinguishable
goods or services to customers under the contract.
Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods.
The Company will evaluate the contract on the contract start date, identify each individual performance
obligation contained in the contract, and judge whether each individual performance obligation will be
performed within a certain period of time or at a certain point in time. If one of the following conditions is
met, and the performance obligation are performed within a certain period of time, the Company will
identify revenue within a period of time according to the performance progress: a. The customers obtain
and consume the economic profits while the Company performs the contract. b. The customers can
control the products under construction during the performance of the Company; c. The products
produced during the performance of the Company cannot be replaced, and the Company has the right
to collect payment for the completed performance accumulated during the entire contract period.
Otherwise, the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.
For the performance obligations performed within a certain period of time, the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers to the customers. When the performance progress
cannot be reasonably identified and the Company's incurred costs are expected to be compensated,
the Company will identify the revenue according to the amount of the incurred costs until the
performance progress can be reasonably identified.
(2) The methods of revenue identification
The Company mainly sells alcoholic products, which is a performance obligation performed at a certain
point in time. The revenue identification of domestic products must meet the following requirements: a.
The Company has delivered the products to the purchasers according to the contract and the
purchasers have signed and confirmed the receipts. b. The amount of sales revenue has been
identified. c. The payment has been received; the receipt of the document of title has been obtained
and the relevant economic benefits are likely to flow in. d. The product-related costs can be reliably
calculated. The following requirements must be met to confirm the revenue of export products: a. The
Company has declared the products in accordance with the contract, obtained the bills of lading,
received the payment or obtained the receipt of payment and related economic benefits that are likely
to flow in. b. The main risks and rewards of the product ownership have been transferred. c. The legal
ownership of the goods has been transferred.
Government grants are monetary assets and non-monetary assets acquired free of charge by the
Company from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets are government grants that are acquired by the Company and
used for forming long-term assets through purchasing and constructing or other ways. If the
government documents do not clearly specify the target of the subsidy, the Company shall separately
explain judgment basis of classifying the government grants into the government grants related to
assets or income.
Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives
(the period of depreciation and amortization) of the relevant assets from the month of commence of
depreciation or amortization when the relevant assets reaching the intended use condition, and
included in the current profit or loss. However, government grants measured at the nominal amount
shall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
a. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should be
recognized as deferred income and included into the current profit and loss or written off of the related
costs when the relevant expenses, losses are recognized.
b. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly included
into the current profit and loss on acquisition or written off of the related costs.
c. Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.
d. Measurement of government grants
If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset, it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
    i. Temporary differences are highly likely to be reversed in the foreseeable future;
    ii. Taxable income that may be used to offset the deductible temporary difference is likely to be
    obtained in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income, except for the income tax generated from the enterprise merger,
transactions or events directly recognized in the owner's equity.
From the effectiveness date of a contract, the Company assessed whether the contract was a lease or
includes any lease. If a party to the contract transferred the right allowing the control over the use of
one or more assets that had been identified within a certain period, in exchange for a consideration,
such contract was a lease or includes a lease.
(1) Accounting treatment with the Company as lessee
On the commencement date of the lease term, the Company recognizes the right-of-use assets and
lease liabilities for the lease, unless it is a simplified short-term lease or a low-value asset lease.
Right-of-use assets are initially measured at costs, including: A. The initial measurement amount of
lease liabilities; B. If there is a lease incentive for the lease payment paid on or before the start date of
the lease term, the relevant amount of the lease incentive already enjoyed shall be deducted; C. Initial
direct expenses incurred by the Company; D. The expected cost to be borne by the Company in order
to dismantle and remove the assets leased, restore original state of the place where the assets leased
are in, or restore the assets leased to the state stipulated in the lease terms.
The Company initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term. When calculating the present value of lease
payments, the Company uses the interest rate implicit in lease as the rate of discount. If the interest
rate implicit in lease cannot be determined, the Company’s incremental lending rate is used as the rate
of discount.
After the commencement of the lease term, the Company uses the cost model for subsequent
measurement of right-of-use assets, depreciates right-of-use assets on a straight-line basis, calculates
the interest expense on the lease liability within the lease term and includes it in the current profit or
loss, unless such interest charge is stipulated to be included in the underlying asset cost. Variable lease
payments that are not included in the measurement of the lease obligation should be included in the
current profit or loss when they are actually incurred, unless such payments are stipulated to be
included in the underlying asset cost.
After the commencement of the lease term, the Company remeasures the lease liability and adjusts the
corresponding right-of-use asset, and if the carrying value of the right-of-use asset has been reduced to
zero but the lease liability is subject to further reduction, the difference is recorded in current profit or
loss: (1) When there is a change in the valuation of the purchase option, renewal option or termination
option, or actual exercise, the Company remeasures the lease liabilities at the present value of the
lease payments after the change and the revised discount rate; (2) When there is a change in the
actual fixed payment, the estimated payable of the residual value of the guarantee, the index or rate
used to confirm the lease payment, the Company calculated the present value based on the changed
lease payment amount and the original discount rate to remeasure the lease liabilities. However, where
changes in lease payments arise from changes in floating interest rates, a revised discount rate was
used to calculate the present value.
The Company does not recognize the right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets, which are included in the profit or loss for the current period or the cost of
relevant assets on a straight-line basis during each period of the lease term.
(2) Accounting treatment with the Company as lessor
① Lease classification
The Company classifies leases into finance leases and operating leases at the inception of leases. A
finance lease refers to a lease where almost all the risks and rewards, related to the ownership of the
leased asset, are substantially transferred, regardless of whether the ownership is eventually
transferred or not. All leases other than finance leases are classified as operating leases.
② Accounting treatment of finance leases
On the commencement date of the lease term, the Company recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. In the initial measurement
of finance lease receivables, the sum of the unsecured residual value and the present value of the
lease payments receivable not yet received on the commencement date of the lease term discounted at
the interest rate implicit in lease is the entry value of the finance lease receivables. The Company
calculates and recognizes the interest income in each period within the lease term at a fixed interest
rate implicit in the lease. The received variable lease payments that are not included in the
measurement of the net investment in the lease are included in profit or loss for the current period when
they are actually incurred.
③ Accounting treatment of operating leases
The Company recognizes the lease payments receivable of the operating lease as rental earnings in
each period within the lease term on a straight-line basis or according to other systematic and
reasonable methods. The initial direct costs related to the operating lease are capitalized, amortized
within the lease term on the same basis as the recognition of rental earnings, and included in profit or
loss for the current period. The received variable lease payments related to the operating lease that are
not included in the lease payments receivable are included in profit or loss for the current period when
they are actually incurred.
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income, except for the income tax generated from the enterprise merger,
transactions or events directly recognized in the owner's equity.
?Applicable □ N/A
                                                                               Approval
                   Content and reason of changes                                                        Note
                                                                              procedures
 On 31 December 2021, the Ministry of Finance issued the
 Interpretation No. 15 of the Accounting Standards for
                                                                                           This change in
 Business Enterprises (C.K. [2021] No. 35), of which the
                                                                                           accounting policies
 “accounting treatment for the sale of products or by-
                                                                                           does not significantly
 products produced by an enterprise before the fixed assets               N/A
                                                                                           affect the Company’s
 reach their intended useable state or during the research
                                                                                           consolidated financial
 and development process” and “judgment on loss-making
                                                                                           statements.
 contracts” were carried out by the Company from 1 January
 On 30 November 2022, the Ministry of Finance issued the
 Interpretation No. 16 of the Accounting Standards for
                                                                                           This change in
 Business Enterprises (C.K. [2022] No. 31), of which the
                                                                                           accounting policies
 “accounting treatment of the income tax effects of dividends
                                                                                           does not significantly
 on financial instruments classified as equity instruments by             N/A
                                                                                           affect the Company’s
 the issuer” and “accounting treatment of the revision of
                                                                                           consolidated financial
 cash-settled share-based payment to equity-settled share-
                                                                                           statements.
 based payment by an enterprise” were carried out by the
 Company from the date of publication.
There was no other change in significant accounting policies in the reporting period other than the
above changes.
□Applicable ? N/A
N/A
                Tax type                              Tax base                                    Tax rate
 Value-added tax                       Taxable sales income                        13 %, 9%, 6%
 Urban maintenance and construction
                                       Taxable turnover tax                        7%
 tax
 Corporate income tax                  Taxable income                              25%, 15%, 16.5%, 9%, 0%
 Consumption tax (based on price)      Baijiu tax price or ex-factory price        20%
 Consumption tax (based on quantity)   Quantity of baijiu                          CNY 1.00/kg
 Education surcharge                   Taxable turnover tax                        3%
 Local education surcharge             Taxable turnover tax                        2%
 Property tax                          Original value of the property*70%;         1.2%, 12%
                                         house rent
 Land use tax                            Land area                              CNY 5-18.00/m2
 Others                                  According to national regulation
Tax payment subject using different corporate income tax rates, the corporate income tax rates are as
follows:
                       Company name                                         Corporate income tax rate
 Luzhou Pinchuang Technology Co., Ltd.                       15%
 Luzhou Laojiao International Development (Hong Kong)
 Co., Ltd.
 Luzhou Laojiao Commercial Development (North
 America) Co., Ltd.
 Mingjiang Co., Ltd.                                         21%-40%
 Luzhou Red Sorghum Modern Agricultural Development
                                                             Exempted from corporate income tax
 Co., Ltd.
 Guangxi Luzhou Laojiao Imported Liquor Industry Co.,
 Ltd.
(1) According to Announcement of the Ministry of Finance, State Taxation Administration and National
Development and Reform Commission on Continuing the Corporate Income Tax Policies Concerning
the Western Development Strategy (No. 23 in 2020, Ministry of Finance), from 1 January 2021 to 31
December 2030, companies are located in the western region whose primary business is listed in the
Catalogue of Encouraged Industries in the Western Region, and the primary business income
accounting for over 60% of the total enterprise income. These companies shall be subject to the
corporate income tax at a reduced rate of 15%. The Company's holding subsidiary, Luzhou Pinchuang
Technology Co., Ltd., whose primary business income meet the requirements of scope and standard of
the Catalogue of Encouraged Industries in the Western Region, is paid at the rate of 15% for corporate
income tax.
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China and
Article 86, Item 1 of the Implementation Regulations of the Corporate Income Tax Law, companies are
exempted from enterprise income tax when they engage in agricultural, forestry, animal husbandry and
fishery industries. The holding subsidiary of the Company, Luzhou Red Sorghum Modern Agricultural
Development Co., Ltd., is engaged in the cultivation and sale of organic sorghum and enjoys the
reduction of corporate income tax preferences.
(3) According to the Article 15, Item 1 of the Provisional Regulations on Value-Added Tax, agricultural
producers sell self-produced agricultural products exempt from value-added tax. The holding subsidiary
of the Company, Luzhou Red Sorghum Modern Agricultural Development Co., Ltd., is engaged in the
cultivation and sale of organic sorghum and enjoys the value-added tax exemption.
(4) According to the Article 3, Item 7 of the Notice on Revise of Interim Measures of Accelerating the
Development in Headquarters Economy of China-Malaysia Qinzhou Industrial Park, till 31 December
with the half reduction in the tax period of preferential policies shall enjoy the local share of corporate
income tax exemption (namely 40% of corporate income tax was exempted, and the proportion
adjusted by the state shall be executed according to new proportion); Guangxi Luzhou Laojiao Imported
Liquor Industry Co., Ltd., the wholly-owned subsidiary of the Company, pays corporate income tax at
the rate of 9% according to the tax preference policies.
currency unit is CNY, except other statements)
                                                                                             Monetary Unit: CNY
                  Item                        Closing Balance                        Opening Balance
 Cash                                                           28,711.93                              26,281.86
 Bank deposit                                        17,729,643,050.90                       13,490,769,725.71
 Other cash and cash equivalents                         27,856,448.42                           22,698,572.99
 Total                                               17,757,528,211.25                       13,513,494,580.56
 Including: Total deposit outbound                       68,948,954.39                           63,993,390.31
             Total amount with
 restriction to use due to mortgage,                     28,521,619.38                          110,965,638.73
 pledge or freeze
Other statements:
Note 1: The deposit outbound is the balance of cash and cash equivalents of the foreign holding
subsidiary of the Company.
Note 2: The closing balance of other cash and cash equivalents is the balance of CNY 17,856,448.42
deposited by the subsidiary, Luzhou Laojiao Electronic Commerce Co., Ltd. on the third-party e-
commerce platform, and guaranty letter deposit of CNY 10,000,000.00 by the subsidiary, Luzhou
Laojiao Sales Co., Ltd., in the bank.
Note 3: There is no special benefit arrangement such as establishing a fund co-management account
with related parties in the current period.
                                                                                             Monetary Unit: CNY
                  Item                        Closing Balance                        Opening Balance
 Financial assets measured at fair
 value with their changes included into               1,073,466,780.37                          706,352,241.79
 current profits/losses
 Including:
 Financial products at fair value
 through profit or loss
 Including:
 Total                                                1,073,466,780.37                          706,352,241.79
Other statements:
The closing balance represents the wealth management products of the collective asset management
plan purchased by the Company from securities-type companies and is measured at fair value based
on the amount calculated on the basis of the net unit value of the underlying assets as published on
the official website of the asset manager.
                                                                                                       Monetary Unit: CNY
                                 Closing Balance                                       Opening Balance
                                     Provision for bad                                       Provision for bad
                  Book balance                                          Book balance
  Type                                     debt            Book                                    debt             Book
                         Proporti              Proporti    value                Proporti               Proporti     value
             Amount                 Amount                           Amount                  Amount
                           on                    on                               on                     on
 Includin
 g:
 Account
 s
 receiva
 ble
 tested      6,265,8      100.00    326,470                5,939,4    1,713,9     100.00     85,699.                1,628,2
 for           90.81          %          .03                 20.78      47.55         %          00                   48.55
 impairm
 ent by
 the
 portfolio
 Includin
 g:
 Account
 s
 receiva
 ble
 tested
 for
 impairm
 ent on                                            5.21%                                                 5.00%
 the           90.81          %          .03                20.781      47.55         %          00                   48.55
 portfolio
 with
 charact
 eristics
 of credit
 risk
  Total                                            5.21%                                                 5.00%
Note: 1 The closing book balance increased by CNY 4,551,943.26, up 265.58% compared with the
opening balance, which was mainly due to the impact of the policy about sales on open account of the
overseas business of the Hong Kong Company.
Accounts receivable tested for impairment on the portfolio:
                                                                                                       Monetary Unit: CNY
                                                                     Closing Balance
             Name
                                        Book balance               Provision for bad debt              Proportion
 Risk portfolio                                6,265,890.81                     326,470.03                           5.21%
 Other portfolio
                 Total                              6,265,890.81                     326,470.03
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable
□Applicable ? N/A
Disclosure by aging
                                                                                                              Monetary Unit: CNY
                                   Aging                                                    Closing balance
 Within 1 year (including 1 year)                                                                                  6,002,381.01
                                    Total                                                                          6,265,890.81
Allowance of provision for bad debt:
                                                                                                              Monetary Unit: CNY
                                                                    Current Period
                            Opening                                                                                 Closing
         Type                                                 Reversal or
                            Balance         Allowance                           Write-off           Other           Balance
                                                               recovery
 Provision
 allowance by                   85,699.00    240,771.03                                                             326,470.03
 risk portfolio
         Total                  85,699.00    240,771.03                                                            326,470.031
Note: There is no significant provision in accounts receivable reversed or recovered in the reporting
period.
                                                                                                              Monetary Unit: CNY
                                                                     Proportion to total closing
                                                                                                        Closing balance of
         Company name                       Closing Balance            balance of accounts
                                                                                                       provision for bad debt
                                                                            receivable
 China
 Duty Free International                            3,890,598.54                         62.09%                     194,529.93
 LTD
 Sazerac Distiller LLC                              1,182,640.06                         18.87%                       59,132.00
 BAIWAN WINES INC.                                    559,788.31                          8.93%                       27,989.42
 Beijing Secoo Trading
 Limited
 Park Street Imports, LLC                            112,240.94                             1.79%                      5,612.05
 Total                                              6,008,777.65                         95.89%
                                                                                                              Monetary Unit: CNY
                         Item                             Closing Balance                           Opening Balance
 Bank acceptance bill                                              4,583,352,503.371                           4,757,631,778.64
                   Total                                   4,583,352,503.37                       4,757,631,778.64
Note: 1. The business mode to manage notes receivable aims to collect contract cash flow as well as
to sell the financial assets, and thus the notes receivable is presented as accounts receivable
financing; since the timing and price of bills discounted may not be reliably estimated due to the short
maturity of the bills all being less than one year and the endorsement of the negotiable bills being
valued at book value, the face value is regarded as the fair value of accounts receivable financing by
the Company.
Changes in accounts receivable financing in the reporting period and fair value:
□Applicable ? N/A
Please refer to the relevant information of disclosure of impairment provision of other accounts
receivable if adopting the general mode of expected credit loss to withdraw impairment provision of
accounts receivable financing.
□Applicable ? N/A
Other statements:
(1) There was no accounts receivable financing pledge at the end of year.
(2) There is CNY 9,632,933,882.81 as follows of accounts receivable financing that have been
endorsed to other parties by the Company but have not expired at the end of year:
                  Item                       Derecognition at period-end           Not derecognition at period-end
Bank acceptance bill                                        9,632,933,882.81
                 Subtotal                                   9,632,933,882.81
Note: The acceptor of the bank acceptance bill is a commercial bank. The probability of not being
paid due is very low, and the possibility of being recourse is very low, so the confirmation has been
terminated.
(3) There are no accounts receivable financing transferred to accounts receivable due to the non-
performance of the agreements by the issuers.
(4) There are no accounts receivable financing actually written off during the reporting period.
                                                                                                 Monetary Unit: CNY
                                     Closing Balance                                 Opening Balance
        Aging
                            Amount                  Proportion                 Amount               Proportion
 Within 1 year              108,917,843.70                   95.33%           174,252,091.59                97.85%
 Over 3 years                         165,065.55                 0.14%
         Total                114,257,506.261                                    178,087,688.81
Note: 1. The closing balance decreased by CNY 63,830,182.55 compared with opening balance, with
an decrease by 35.84%, mainly due to the decrease of prepayments with the decline of product
promotion activities.
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There is no significant prepayment whose aging is longer than 1 year.
                                                                                          Proportion to the total closing
                 Company Name                               Closing Balance
                                                                                             balance of prepayment
Sports Equipment Center of General
Administration of Sport of China
China Railway Chengdu Group Co.,Ltd.                                      13,101,150.69                           11.47%
Luzhou Western Gas Co., Ltd.                                              12,050,769.30                           10.55%
Luzhou Power Supply Company of State Grid
Sichuan Electric Power Company
Sichuan Jiacheng Jingwei Culture
Communication Co., Ltd.
                   Subtotal                                               64,191,456.99                           56.18%
                                                                                                    Monetary Unit: CNY
                   Item                              Closing Balance                        Opening Balance
 Other receivables                                              23,396,533.981                           28,615,361.96
                  Total                                          23,396,533.98                           28,615,361.96
Note: 1. Other receivables above-mentioned refer to other receivables after deducted interest
receivable and dividend receivable.
                                                                                                    Monetary Unit: CNY
                  Nature                           Closing book balance                   Opening book balance
 Intercourse funds                                               18,516,591.35                           19,729,613.70
 Petty cash                                                        326,785.39                               292,228.26
 Saving deposits involving contract
 disputes
                  Total                                        147,892,873.721                          152,398,754.39
Note 1: The saving deposits involving contract disputes are three deposits amounting to CNY
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
contract disputes and have thus been transferred into “other receivables”.
                                                                                                       Monetary Unit: CNY
                               First stage              Second stage             Third stage
   Provision for bad                                 Expected loss in the
                          Expected credit loss                               Expected loss in the           Total
         debt                                          duration (credit
                             of the next 12                                    duration (credit
                                                       impairment not
                                 months                                     impairment occurred)
                                                         occurred)
 Balance of 1 January
 Balance of 1 January
 period
 Allowance of the
 current period
 Write-off of the
 current period
 Balance of 31
 December 2022
Note 1: There is no significant amount change of loss provision in the current period.
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable ? N/A
Disclosure by aging
                                                                                                       Monetary Unit: CNY
                           Aging                                                        Book balance
 Within 1 year (including 1 year)                                                                          11,192,350.26
 Over 3 years                                                                                            132,521,509.38
 Over 5 years                                                                                            131,229,901.48
                            Total                                                                        147,892,873.72
Allowance of provision for bad debt:
                                                                                                       Monetary Unit: CNY
                                                                Current Period
      Type          Opening Balance                      Reversal or                                    Closing Balance
                                         Allowance                          Write-off          Other
                                                          recovery
 Other
 receivables
 tested for
 impairment
 individually
 Other
 receivables
 tested for             3,783,392.43       924,947.31                         212,000.00                      4,496,339.74
 impairment by
 the portfolio
      Total           123,783,392.43       924,947.31                         212,000.00                   124,496,339.74
                                                                                                         Monetary Unit: CNY
                             Item                                                          Amount
 Other receivables                                                                                            212,000.001
Note 1: There are no other receivables actually verified in the current period.
                                                                                                         Monetary Unit: CNY
                                                                                                            Provisioning
                                                                                       Proportion in
 Company Name               Nature           Closing Balance          Aging                               amount at period
                                                                                     total receivables
                                                                                                                end
 Agricultural Bank
 of China
 Changsha
 Yingxin Sub-
 branch, Industrial    Saving deposits
 and Commercial        involving              129,049,496.98    Over 5 years                  87.26%       120,000,000.00
 Bank of China         contract disputes
 Nanyang
 Zhongzhou Sub-
 branch and
 another bank
 CTS Luzhou
 Laojiao Cultural      Security deposit
                                                                Within 1 year, 2-
 Tourism               and intercourse           5,111,743.43                                  3.46%           780,587.17
 Development           funds                                    3 years
 Co., Ltd.
 Longmatan
 Power Supply
 Bureau of             Security deposit         1,520,000.00    Over 5 years                   1.03%          1,520,000.00
 Luzhou Power
 Bureau
 Southwest
 United Equity
                       Security deposit         1,250,000.00    Within 1 year                  0.85%            62,500.00
 Exchange Co.,
 Ltd.
 Online Banking
 (Beijing)                                                      1-2 years, 3-4
                       Security deposit           500,000.00                                   0.34%            80,000.00
 Technology Co.,                                                years
 Ltd.
       Total                                  137,431,240.41                                  92.93%       122,443,087.17
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
                                                                                                      Monetary Unit: CNY
                                     Closing Balance                                  Opening Balance
                                            Provi                                            Provi
                                             sion                                             sion
                                              for                                              for
                                            stock                                            stock
                                            obsol                                            obsol
                                           escen                                            escen
                                            ce or                                            ce or
   Category                                impair                                           impair
                      Book Balance          ment       Book Value         Book Balance       ment        Book Value
                                           provis                                           provis
                                            ion of                                           ion of
                                             contr                                            contr
                                              act                                              act
                                           perfor                                           perfor
                                            manc                                             manc
                                               e                                                e
                                            costs                                            costs
 Raw materials         128,252,608.95                  128,252,608.95     123,986,924.38                123,986,924.38
 Goods in
 progress
 Finished
 goods
 Goods in
 transit
     Total          9,840,742,374.851                9,840,742,374.85    7,277,573,166.80              7,277,573,166.80
Note: 1. At the end of the period, it increased by CNY 2,563,169,208.05, up 35.22% compared with
the beginning of the period, which was mainly due to the joint impact of the Company's continuous
promotion of the plan on high-quality liquor production capacity and quality improvement,
management requirements for product storage period and increase of the production volume of
product.
the period.
                                                                                                      Monetary Unit: CNY
                   Item                                Closing Balance                      Opening Balance
 Value-added tax                                                 139,165,221.10                          82,734,324.31
 Corporate income tax                                               9,447,204.77                         24,638,887.44
 Other taxes                                                        4,423,521.07                           4,601,321.16
                   Total                                         153,035,946.94                          111,974,532.91
Other statements:
The value-added tax expected to be deducted in the next fiscal year and corporate income tax and
other taxes are disclosed in other current assets.
                                                                                               Monetary Unit: CNY
                                           Changes in current period
                                                                                                         Closin
           Openin                       Gain     Adjust                                         Closin     g
             g                        or loss    ments              Cash                          g      Balanc
Investe    Balanc                     recogn        of    Other    divided   Provisi            Balanc    e of
   e         e      Increa   Decrea     ized      other   chang       or     on for               e      provisi
                                                                                       Other
           (book      se       se      under     compr     es in    profit   impair             (book    on for
           value)                      equity    ehensi   equity   declar     ment              value)   impair
                                      metho        ve                 ed                                  ment
                                          d     income
Huaxi                                                -
Securit    2,493,                     43,897                       27,283                       2,497,
ies        328,16                     ,917.3                        ,114.4                      540,59
Co.,                                            ,376.1                                                   098.80
Ltd.                                                 9
Luzho
u
Laojiao
Postdo
ctoral
Workst              40,000                                                                      40,185
ation               ,000.0                                                                      ,894.7
Techno                                  4.77
logy
Innova
tion
Co.,
Ltd.
Sichua
n
Develo
pment
Wine
Invest     848.36                       5.88                                                    654.24
ment
Co.,
Ltd.
Sichua
n
Tongni
ang
Baijiu
Industr
y
Techno
logy       461.52                       4.39                                                    855.91
Resear
ch
Institut
e Co.,
Ltd.
Note
CTS
Luzho      119,80                          -                                                    115,79
u
Laojiao
Cultura        04                     204.84                                                        20
l
 Touris
 m
 Develo
 pment
 Co.,
 Ltd.
 Subtot                                              12,402                                                    2,567,
   al                                                ,376.1                                                    098.80
  Total       744,23    ,000.0            ,807.5                        ,114.4                        500,55
                                                     ,376.1                                                    098.80
Note: 1. On 10 March 2022, Luzhou Laojiao Postdoctoral Workstation Technology Innovation Co., Ltd.
was incorporated, and the Company contributes CNY 40 million with the shareholding ratio as 40.00%
measured by equity method; Laojiao Group contributes CNY 51 million with the shareholding ratio as
as 9.00%.
                                                                                                  Monetary Unit: CNY
                   Item                              Closing Balance                      Opening Balance
 Financial assets designated to be
 measured at fair value through other
 comprehensive income
 Including:
 China Tourism Group Duty Free
 Corporation Limited
 Guotai Junan Securities Co., Ltd.                             160,049,389.21                          210,690,476.31
 Luzhou Bank Co., Ltd.                                         120,158,392.72                          102,174,621.71
 Guotai Junan Investment
 Management Co., Ltd.
 North Chemical Industries Co.,Ltd.                             14,931,950.24                           15,963,896.54
 Guojiu Big Data Co., Ltd.                                      10,000,000.00                           10,000,000.00
 Sichuan China Baijiu Golden Triangle
 Brand Operation Development Co.,
 Ltd. and other equity instrument
 investments
                   Total                                      1,136,736,978.11                         363,312,120.43
Note: 1 In August 2022, the Company subscribed 3,928,600 shares of China Tourism Group Duty Free
Corporation Limited at HKD 158 per share; based on the holding intention, the Company classified
them as financial assets measured at fair value through other comprehensive income.
Categories of non-trading equity instrument investment in the current period:
                                                                                                  Monetary Unit: CNY
                       Recognized                                       Amount of      Reason for         Reason of
                                      Accumulative     Accumulative
      Item              dividends                                         other        assigning to         other
                                         gains            losses
                         income                                        comprehens      measure at       comprehensiv
                                                                ive income    fair value and      e income
                                                                transferred      changes       transferred to
                                                                to retained   recorded into       retained
                                                                  earnings         other          earnings
                                                                              comprehensiv
                                                                                 e income
                                                                              According to
China Tourism                                                                 the mode of
Group Duty
                                                                              managing
Free                            264,853,739.27
Corporation                                                                   assets    by
Limited                                                                       management
                                                                              layer
                                                                              According to
                                                                              the mode of
Guotai Junan
                                                                              managing
Securities       8,008,357.96   147,330,232.45
Co., Ltd.                                                                     assets    by
                                                                              management
                                                                              layer
                                                                              According to
                                                                              the mode of
Luzhou Bank                                                                   managing
Co., Ltd.                                                                     assets    by
                                                                              management
                                                                              layer
                                                                              According to
Guotai Junan                                                                  the mode of
Investment                                                                    managing
Management                                                                    assets    by
Co., Ltd.                                                                     management
                                                                              layer
                                                                              According to
North                                                                         the mode of
Chemical                                                                      managing
Industries                                                                    assets    by
Co.,Ltd.                                                                      management
                                                                              layer
                                                                              According to
                                                                              the mode of
Guojiu Big                                                                    managing
Data Co., Ltd.                                                                assets    by
                                                                              management
                                                                              layer
                                                                              According to
Shenzhen                                                                      the mode of
Xingangfeng                                                                   managing
Development                                                                   assets    by
Co., Ltd.                                                                     management
                                                                              layer
                                                                              According to
                                                                              the mode of
Sichuan
                                                                              managing
Deyang Jintai                                    2,000,000.00
Hotel                                                                         assets    by
                                                                              management
                                                                              layer
Hainan                                                                        According to
Huitong                                                                       the mode of
International                                                                 managing
Trust                                                                         assets    by
 Company                                                                     management
                                                                             layer
 Sichuan
 China Baijiu
 Golden                                                                      According to
 Triangle                                                                    the mode of
 Brand
                                                                             managing
 Operation                                       398,926.37
 Development                                                                 assets    by
 Co., Ltd. and                                                               management
 other equity                                                                layer
 instrument
 investments
?Applicable □ N/A
                                                                                         Monetary Unit: CNY
                          Buildings and                           Construction in
          Item                              Land use right                                     Total
                          constructions                             progress
 I. Original cost:
 period
 (1) External
 purchase
 (2) Transfer from
 inventories/fixed
 assets/construction
 in progress
 (3) Increase from
 business
 combination
 current period
 (1) Disposal
 (2) Other transfer out
 II. Accumulated
 depreciation and
 amortization
 period
 (1) Provision or
 amortization
 (2) Transfer from
 fixed
 assets/intangible
 assets
 current period
 (1) Disposal
 (2) Other transfer out
 III. Provision for
 impairment
 period
 (1) Provision
 current period
 (1) Disposal
 (2) Other transfer out
 IV. Book Value
 Value
                                                                                                        Monetary Unit: CNY
                                                                                           Reason for not having the
                      Item                               Book value
                                                                                             certification of right
 Buildings of the Company                                         32,196,487.23      In procedure
                Subtotal                                          32,196,487.23
                                                                                                        Monetary Unit: CNY
                      Item                             Closing Balance                         Opening Balance
 Fixed assets                                                 8,853,348,204.831                          8,088,216,508.58
 Disposal of fixed assets                                             2,910,393.95                           1,270,765.81
                      Total                                    8,856,258,598.78                          8,089,487,274.39
Note 1: The fixed assets listed above refer to the fixed assets deducted those disposed.
                                                                                                        Monetary Unit: CNY
                       Buildings and    Specialized       General         Transportation      Other
      Item                                                                                                       Total
                       constructions    equipment        equipment          equipment       equipment
 I. Original
 cost:
balance                     .38              .03                1                              .44             0.12
current period                9                3                1                                8               .05
(1) External
purchase
(2) Transfer
from              598,283,047.9                     181,067,493.5                    123,284,209.7    1,003,528,058
construction in               0                                 5                                0               .85
progress
(3) Increase
from business
combination
(4) Adjustment
for completion                       -717,397.81     4,593,762.07         7,532.64      967,720.75
settlement                    6                                                                                   1
(5) Transfer
from
intangible
assets
current period                2                                                                                   7
(1) Disposal      104,245,477.0                                                                       186,752,519.5
or retirement                 9                                                                                   0
(2) Transfer to
investment        47,321,613.93                                                                       47,321,613.93
property
(3) Transfer to
long-term
deferred
expenses
(4) Transfer to
intangible
assets
Balance                      .95              .25              .63                              .93            9.80
II.
Accumulated
depreciation
Balance                       3                6                5                                3               .47
current period                6                1                4                                                  9
(1) Provision                                                         3,286,434.42   65,524,430.56
(2) Changes
of exchange                                            121,170.42                                        121,170.42
rates
current period                                                                                                    6
(1) Disposal                                                                                          153,086,797.4
or retirement                                                                                                     2
(2) Transfer to
investment        15,125,126.70                                                                       15,125,126.70
property
(3) Transfer to
long-term
deferred
expenses
 Balance                        8                   5               7                                   0                .90
 III. Provision
 for impairment
 Balance
 current period
 (1) Provision
 current period
 (1) Disposal
 or retirement
 Balance
 IV. Book Value
 Book Value                    .70                  0               6                                   3                .83
 Book Value                    .68                  7               6                                   1                .58
                                                                                                           Monetary Unit: CNY
                              Item                                                    Closing book value
 Buildings and constructions                                                                                  25,700,763.32
                             Subtotal                                                                         25,700,763.32
                                                                                                           Monetary Unit: CNY
                                                                                            Reason for not having the
                   Item                                   Book value
                                                                                              certification of right
                                                                                      The property ownership certificate
                                                                                      has not been processed yet for the
 Buildings of the Company                                          23,940,326.21      historical reasons, and it plans to be
                                                                                      processed after gradually improving
                                                                                      procedures.
 Buildings of the Company                                         266,081,326.56      In procedure
 Buildings of the subsidiary-brewing
 company
 Buildings of the subsidiary- Guangxi
 Imported Liquor Industry
                  Subtotal                                      4,760,990,725.25
                                                                                                           Monetary Unit: CNY
                   Item                                 Closing Balance                         Opening Balance
 Disposal and retirement of assets                                     2,910,393.95                             1,270,765.81
                  Total                                            2,910,393.95                          1,270,765.81
                                                                                                    Monetary Unit: CNY
                  Item                               Closing Balance                       Opening Balance
 Construction in progress                                      808,919,047.21                        1,259,845,487.50
                  Total                                        808,919,047.21                        1,259,845,487.50
                                                                                                    Monetary Unit: CNY
                                   Closing Balance                                   Opening Balance
                                                                                            Provi
                                      Provision
      Item                                                                                  sion
                                         for
                    Book balance                      Book value         Book balance        for       Book value
                                      impairme
                                                                                           impair
                                          nt
                                                                                            ment
 Improvement
 and technical
 renovation
 project of
 Luzhou
 Laojiao
 production
 supporting
 Technical
 renovation of
 Luzhou
 Laojiao            638,798,849.16                   638,798,849.16      301,985,162.65                301,985,162.65
 Intelligent
 packaging
 center
 Landscape
 improvement
 project of
 Luzhou
 Laojiao                                                                 149,089,445.94                149,089,445.94
 Huangyi
 Brewing
 Ecological
 Park
 Technical
 renovation
 project of
 Luzhou              12,284,062.35                    12,284,062.35
 Laojiao
 intelligent
 brewing (I)
 Other projects     157,836,135.70                   157,836,135.70      245,707,057.09                245,707,057.09
     Total         808,919,047.211                   808,919,047.21     1,259,845,487.50             1,259,845,487.50
Note: 1. The closing balance decreased CNY 450,926,440.29 compared with the opening balance, with
a decrease by 35.79%, because of the carry forward of the project for completion in the current period.
                                                                                                        Monetary Unit: CNY
                                                                  Propo
                                                                   rtion
                                                                                                 Includi
                                                                     of                 Accu
                                                                                                    ng:     Capita
                             Increa                                accu                mulati
                     Openi            Transf             Closin                                  Capita     lizatio
                              se in             Other             mulati       Progr     ve                           Sourc
            Budge     ng              er into              g                                       lized    n rate
  Item                       curren             decre                ve         ess    capital                         e of
              t      Balan             fixed             Balan                                    intere    for the
                                t               ases              projec        (%)     ized                          funds
                      ce              assets               ce                                      st for   period
                             period                               t input              intere
                                                                                                    the       (%)
                                                                     in                   st
                                                                                                 period
                                                                  budge
                                                                      t
 Impro
 veme
 nt and
 techni
 cal
 renov
 ation
 projec     669,3    563,0   1,724,   561,4     3,388,
 t     of   21,56    63,82    916.3   00,49      240.5                                                                Other
                                                                     %        0%
 Luzho       1.00     1.82        5    7.60          7
 u
 Laojia
 o
 produ
 ction
 suppo
 rting
 Techni
 cal
 renov
 ation
 of
 Luzho
 u                                    685,7     267,0             36.54       40.00     150,7     150,7
 Laojia                               71.68     24.78                %        %         69.29     69.29
 o
 Intellig
 ent
 packa
 ging
 center
 Lands
 cape
 impro
 veme
 nt
 projec     200,0    149,0    28,25   177,3
 t     of   65,40    89,44   9,956.   45,74                                                                           Other
 Luzho       0.00     5.94       65    8.65
 u
 Laojia
 o
 Huan
 gyi
 Brewi
 ng
 Ecolo
 gical
 Park
 Techni
 cal
 renov
 ation
 projec
 t     of
 Luzho                                                              12.20
 u                                                                     %
 Laojia
 o
 intellig
 ent
 brewi
 ng (I)
  Total      071,9     138,4   51,60    32,01     75,10    82,91                                       3.59%
Note: 1. Other decreases refer to land use rights, software and low priced and easily worn articles
transferred to intangible assets.
                                                                                                    Monetary Unit: CNY
             Item                      Land use right          Buildings and constructions             Total
 I. Original cost
 period
 (1) Lease in                                                                3,237,563.67                 3,237,563.67
 (2) Changes of exchange
 rates
 period
 (1) Adjustment for change
 of lease term
 II. Accumulated
 amortization
 period
 (1) Provision                                  3,634,912.70                11,003,664.32               14,638,577.02
 (2) Changes of exchange
 rates
 period
 (1) Disposal
 (1) Adjustment for change                                                  10,698,980.15               10,698,980.15
 of lease term
 III. Provision for impairment
 period
 (1) Provision
 period
 (1) Disposal
 IV. Book Value
                                                                                                  Monetary Unit: CNY
                                                          No-patent
                                                                       Computer      Trademark
      Item            Land use right      Patent right      right                                       Total
                                                                       software         right
                                                         technology
 I. Original cost
 Balance                                                                         5           08
 current period
 (1) Acquired              6,754,009.86                               2,545,221.23   224,168.74        9,523,399.83
 (2) Internal
 developed
 (3) Business
 combination
 (4)
 Transferred
 from                  582,258,391.12                                   75,255.44                   582,333,646.56
 construction in
 progress
 (5) Adjustment
 for completion             948,500.12                                                                  948,500.12
 settlement
 current period
 (1) Disposal             36,454,066.94                                                              36,454,066.94
 (2) Transfer to
 investment                9,566,480.21                                                                9,566,480.21
 property
 Balance                                                                         2           82
 II.
 Accumulated
 amortization
 Balance                                                                 2           73
 current period
 (1) Provision       76,292,727.98     130,005.05             4,104,831.25    76,477.68        80,604,041.96
 current period
 (1) Disposal          8,118,193.45                                                              8,118,193.45
 (2) Transfer to
 investment            2,613,513.22                                                              2,613,513.22
 property
 Balance                                                                 7           41
 III. Provision
 for impairment
 Balance
 current period
 (1) Provision
 current period
 (1) Disposal
 Balance
 IV. Book Value
 Book Value                                                              5
 Book Value                                                              3
There is no proportion of intangible assets formed by internal development to the balance of intangible
assets at the period-end.
                                                                                            Monetary Unit: CNY
       Item         Opening Balance       Increase      Amortization     Other decrease      Closing Balance
 Improvement
 expense of
 rented fixed
 assets
       Total            1,463,869.21       116,406.94      872,334.97          -2,069.741         710,010.92
Note: 1 Other decrease was generated from changes of exchange rates.
                                                                                                  Monetary Unit: CNY
                                      Closing Balance                                 Opening Balance
         Item            Deductible temporary                           Deductible temporary
                                                Deferred tax assets                              Deferred tax assets
                             differences                                    differences
 Provision for asset
 impairment
 Unrealized profits
 from internal              2,839,779,249.07        709,944,812.27          3,161,541,177.98         790,385,294.49
 transactions
 Deductible losses              9,551,262.70             2,312,572.68           5,716,197.58            1,429,049.40
 Impact from salary           630,936,117.63        155,191,186.34            591,456,408.66         145,429,434.14
 Impact from deferred
 earnings
 Impact from fixed
 assets depreciation
 Recognition costs of
 restricted shares for
 equity incentive in
 the vesting period
 Impact from fair
 value changes of
 other equity                   5,752,926.37             1,438,231.59           5,752,926.37            1,438,231.59
 instrument
 investment
 Impact of income tax
 from fair value
 changes of held-for-          26,533,219.63             6,633,304.92
 trading financial
 assets
         Total              4,042,373,330.50      1,005,167,353.80          3,955,481,713.51         986,112,983.42
Note: 1. Deductible temporary differences of CNY 367,875,588.32 of costs and expenses recognized
during the vesting period of restricted shares for share incentives represent the estimated future pre-tax
deductible amounts based on the Company's share price less the grant price at the end of the period.
                                                                                                  Monetary Unit: CNY
                                      Closing Balance                                 Opening Balance
         Item             Taxable temporary        Deferred tax           Taxable temporary         Deferred tax
                             differences            liabilities              differences             liabilities
 Fair value changes
 of other equity
 instrument
 investment
 Fair value changes
 of held-for-trading                                                            6,352,241.79            1,588,060.45
 financial assets
 Impact from the
 policy of one-time           172,516,000.07            42,262,585.21
 pre-tax deduction of
 fixed assets
         Total                  667,640,314.75             166,043,663.88            270,312,079.59           67,578,019.93
                                                                                                       Monetary Unit: CNY
                     Item                               Closing Balance                         Opening Balance
 Deductible losses                                                 72,503,754.75                             201,219,210.53
 Credit impairment losses and Asset
 impairment losses
 Impact from         employee   benefits
 payable
                     Total                                         74,873,148.89                             201,358,234.07
                                                                                                       Monetary Unit: CNY
             Year                       Closing Amount                Opening Amount                       Notes
 The 1st year                                   6,496,423.50
 The 2nd year                                 14,491,365.44                    6,713,657.39
 The 3rd year                                 21,651,366.58                   14,491,365.44
 The 4th year                                  11,572,224.60                 108,989,982.02
 The 5th year                                 18,292,374.63                   71,024,205.68
             Total                            72,503,754.75                  201,219,210.53
                                                                                                       Monetary Unit: CNY
                                      Closing Balance                                      Opening Balance
                                         Provision
      Item                                                                                     Provision
                                            for
                       Book balance                      Book value         Book balance          for          Book value
                                         impairme
                                                                                              impairment
                                             nt
 Prepaid
 equipment                                                                                                    650,384,435.7
 and land                                                                                                                 0
 expense
     Total             196,095,702.09                   196,095,702.09      650,384,435.70
Note: 1. At the end of the period, it decreased by CNY 454,288,733.61, down 69.85%, which was
mainly due to the impact of the completion and transfer to fixed assets of construction in progress and
the settlement of project device prepayment of Brewing Company as the Company's subsidiary.
                                                                                                       Monetary Unit: CNY
                 Category                               Closing Balance                         Opening Balance
 Materials and service expense                              1,042,394,395.05                          1,171,595,976.46
 Engineering equipment expense                              1,269,271,189.99                          1,248,758,493.07
                   Total                                    2,311,665,585.04                          2,420,354,469.53
                                                                                                    Monetary Unit: CNY
                                                                                   Reason for not payment or carrying
                  Category                         Closing Balance
                                                                                                forward
 China Construction First Group
 Corporation Limited
                   Total                                      257,461,125.73
                                                                                                    Monetary Unit: CNY
                  Category                         Closing Balance                          Opening Balance
 Within 1 year                                              2,540,635,630.98                          3,484,385,115.64
 Over 3 years                                                  13,884,666.89                             20,113,173.57
                   Total                                   2,566,374,718.761                          3,510,110,701.25
Note: 1. There is no significant contract liability whose aging is longer than 1 year.
                                                                                                    Monetary Unit: CNY
                                                  Increase in current    Decrease in current
         Item                Opening Balance                                                        Closing Balance
                                                        period                 period
 benefits
 benefits- defined                36,904,203.51       122,740,481.69            140,230,903.16           19,413,782.04
 contribution plans
 benefits
         Total                  648,103,740.96      1,184,321,425.69        1,157,390,281.34            675,034,885.31
                                                                                                    Monetary Unit: CNY
                                                  Increase in current    Decrease in current
         Item                Opening Balance                                                        Closing Balance
                                                        period                 period
 allowances and                 549,316,255.45        901,369,990.30            838,840,852.30          611,845,393.45
 grants
 welfare
 premiums
 Work-related injury
 insurance
 Medical and
 maternity insurance            3,956,336.14        60,192,581.76             62,621,869.14          1,527,048.76
 premium
 expenditures and
 employee education
 funds
          Total               611,190,565.92     1,061,312,546.58        1,016,890,980.76         655,612,131.74
                                                                                               Monetary Unit: CNY
                                               Increase in current    Decrease in current
          Item             Opening Balance                                                     Closing Balance
                                                     period                 period
 insurance premium
 insurance premium
          Total                36,904,203.51       122,740,481.69            140,230,903.16        19,413,782.04
                                                                                               Monetary Unit: CNY
                   Item                         Closing Balance                         Opening Balance
 Value-added tax                                           502,641,326.22                         421,216,223.94
 Consumption tax                                         1,386,271,621.60                       1,263,440,836.05
 Enterprise income tax                                   1,345,243,541.07                       1,327,750,786.20
 Individual income tax                                      10,295,445.63                          10,467,970.24
 Urban maintenance and construction
 tax
 Education surcharge                                        56,445,651.96                          35,234,596.27
 Local education surcharge                                  37,733,654.17                          23,651,376.27
 Stamp duty                                                   9,937,931.91                           8,490,523.62
 Land use tax                                                   437,618.74                            437,619.35
 Others                                                         302,715.24                            352,150.68
                   Total                                 3,481,150,728.98                       3,173,479,627.79
                                                                                               Monetary Unit: CNY
                   Item                         Closing Balance                         Opening Balance
 Dividend payable                                           16,594,850.58
 Other payables                                         1,185,814,427.911                         652,393,292.60
                   Total                                 1,202,409,278.49                         652,393,292.60
Note: 1. Other payables listed in the above table are other payables minus interest payable and
dividend payable.
                                                                                         Monetary Unit: CNY
                    Item                     Closing Balance                     Opening Balance
 Ordinary share dividends                              16,594,850.581
                    Total                               16,594,850.58
Note: 1. The closing balance refer to the dividends distributed but not yet paid to minority shareholders
of the Company’s subsidiary Boda Marketing Company.
                                                                                         Monetary Unit: CNY
                    Item                     Closing Balance                     Opening Balance
 Security deposit                                      527,881,969.37                       628,174,772.12
 Intercourse funds                                      10,226,769.10                        17,757,284.78
 Repurchase obligations of restricted
 shares
 Others                                                  8,683,690.66                          6,461,235.70
                    Total                            1,185,814,427.91                       652,393,292.60
Other statements:
Other payables whose aging are longer than 1 year are mainly security deposits collected from dealers.
                                                                                         Monetary Unit: CNY
                    Item                     Closing Balance                     Opening Balance
 Long-term loans due within one year                    20,400,000.00
 Lease liabilities due within one year                  14,530,370.36                        13,983,036.95
 Interest of long-term loans due within
 one year
 Interest of bonds payable due within
 one year
                    Total                               81,879,466.63                        86,202,215.03
                                                                                                      Monetary Unit: CNY
                    Item                             Closing Balance                        Opening Balance
 Output VAT to be transferred                                  333,627,225.47                           456,314,391.17
                 Total                                         333,627,225.47                           456,314,391.17
                                                                                                      Monetary Unit: CNY
                    Item                             Closing Balance                        Opening Balance
 Credit loans                                                 3,200,000,000.00
 Less: Long-term loans due within one
                                                                -20,400,000.00
 year
                 Total                                        3,179,600,000.00
                                                                                                      Monetary Unit: CNY
                    Item                             Closing Balance                        Opening Balance
 Corporate bonds in 2019 (Phase I)                                                                     2,494,539,629.08
 Corporate bonds in 2020 (Phase I)                            1,497,461,348.61                         1,496,246,113.15
 Corporate bonds in 2022 (Phase I)                            1,498,638,223.25
                 Total                                        2,996,099,571.86                         3,990,785,742.23
financial liabilities such as preferred shares and perpetual bonds)
                                                                                                      Monetary Unit: CNY
                                                                                  Amorti
                                                                        Withdr              Repay
                                                                                  zation
                                                     Openin   Issued    awal of              ment
                                           Issuing                                   of
 Bond        Par       Issuing   Duratio               g       in the   interes              in the
                                           amoun                                  premiu               Closing Balance
 name       value        date      n                 Balanc   current     t by              reporti
                                              t                                   m and
                                                       e      period      par                  ng
                                                                                  deprec
                                                                         value              period
                                                                                   iation
 Corpor
 ate
 bonds     2,500,      27                  2,490,    2,494,             58,849              2,500,
 in        000,00      August    3+2       000,00    539,62             ,315.0              000,00
 (Phase                2019
 I)
 Corpor
 ate       1,500,      16                  1,494,    1,496,             52,500
 bonds                                                                            1,215,
 in                                                                               235.46
 (Phase
 I)
 Corpor
 ate                       2
 bonds            1,500,                         1,498,               1,498,                     -
                           Decem                                                  3,562,
 in               000,00              3          800,00               800,00                161,77              1,498,638,223.25
 (Phase                    2022
 I)
  Total                        ——                800,00      785,74   800,00      1,815.              000,00    2,996,099,571.86
                                                                                                               Monetary Unit: CNY
                       Item                                  Closing Balance                          Opening Balance
 Lease payment                                                          48,776,000.46                              61,305,700.55
 Less: unrecognized financing cost                                          -5,148,660.44                          -6,654,995.52
 Lease liabilities due within one year                                 -14,530,370.36                             -13,983,036.95
                       Total                                            29,096,969.66                              40,667,668.08
                                                                                                               Monetary Unit: CNY
                                                   Increase in          Decrease in
           Item            Opening Balance                                                  Closing Balance          Reason
                                                  current period       current period
                                                                                                                Reception of
 Government
 grants
                                                                                                                allocation
           Total               28,531,014.28       11,800,000.00            6,626,690.48      33,704,323.80             --
Details:
                                                                                                               Monetary Unit: CNY
                                                    Non-
                                                                   Other          Cost
                                     Increase    operating                                                            Related to
      Liability      Opening                                    income in      reduction     Other       Closing
                                    in current   income in                                                             assets/
        Item         Balance                                      current      in current   changes      Balance
                                      period       current                                                             income
                                                                  period         period
                                                   period
 New
 mode
 applicatio
 n project
 of digital         6,070,300.                                 1,386,000.                               4,684,300.    Related to
 workshop                   00                                         00                                       00    assets
 for    solid
 state
 baijiu
 production
 Constructi
 on project
 of     spirit
 room      of
 Luzhou
 Laojiao
 brewing
 technical
 renovation
 Luzhou
 Laojiao
 automatic
 wine
 production
 line
 technical
 renovation
 project
 Boiler
 reconstruc
 tion
 project of
 Luohan
 Brewing
 Base     of
 Luzhou
 Laojiao
 Brewing
 wastewate
 r
 treatment
 project
 Improvem
 ent     and
 technical
 renovation
 project of                                           99,500.00
 Luzhou
 Laojiao
 production
 supporting
                                                                                                      Monetary Unit: CNY
                                           Increases/decreases in the current period (+, -)
                                                             Conversi
                                                               on of
                 Opening Balance     Issuance of    Bond                                               Closing Balance
                                                             reserves     Other
                                                      s                               Subtotal
                                     new shares                funds        s
                                                    share
                                                                into
                                                              shares
 Total
 number    of    1,464,752,476.00    7,142,624.00                                  7,142,624.001       1,471,895,100.00
 shares
Note: 1. In February 2022, the registration of 6,862,600 shares of the Restricted Share Incentive Plan
granted by the Company for the first time were completed; in September 2022, the Company granted
seven awardees no longer eligible, the Company decided to repurchase and retire the 62,310 restricted
shares of them which had been granted but not lifted from restricted sales; so far, the above grant and
repurchase of the Restricted Share Incentive Plan had all been registered and the total shares of the
Company changed to 1,471,895,100 shares.
                                                                                                         Monetary Unit: CNY
                                                  Increase in current        Decrease in current
           Item              Opening Balance                                                            Closing Balance
                                                        period                     period
 Share premium
 (capital premium)
 Other capital
 reserves
           Total              3,755,354,665.73         1,050,312,119.72             5,512,316.46          4,800,154,468.99
Other statements, including increase/decrease and reasons thereof:
Note 1: The increase and decrease of capital premium of the period is the premium payment received
and paid for the grant and repurchase of restricted shares.
Note 2: The increase in other capital reserves for the period was mainly due to the impact of the
income tax of the costs and expenses to be recognized in the period for the issuance of restricted
shares and the expected pre-tax deductible amount in future periods in excess of the recognized
costs and expenses.
                                                                                                         Monetary Unit: CNY
                                                  Increase in current        Decrease in current
           Item              Opening Balance                                                            Closing Balance
                                                        period                     period
 Perform           the
 repurchase
 obligations under the
 equity incentive
           Total                                        666,858,899.64            27,836,900.86             639,021,998.78
Other statements, including notes to increase and decrease during the reporting period and the
reasons for changes:
Note: The Company recognized restricted shares repurchase obligations in the current period, raising
the treasury stock by CNY 666,858,899.64; the Company repurchased and retired restricted shares in
the current period, declining the treasury stock by CNY 5,574,626.46; and the treasury stock was
down by CNY 22,262,274.40 due to the expected cash dividend of unlockable restricted shares.
                                                                                                         Monetary Unit: CNY
                                                            Current Period
                                            Less:          Less:
                                         Previously     Previously                                  Amount
                             Amount in
                                         recognize      recognize                    Amount        attribute to
                   Opening    current                                                                             Closing
    Item                                 d in other     d in other       Less:     attribute to        non-
                   Balance     period                                                                             Balance
                                         comprehe       comprehe        Income       parent        controlling
                               before
                                            nsive          nsive          tax       company        sharehold
                              income
                                           income         income                    after tax       ers after
                                tax
                                         transferre     transferre                                      tax
                                         d to profit        d to
                                            and loss    retained
                                                        earnings
I. Other
comprehe
nsive
income
that will          193,605,1    173,373,3                                         173,373,3                  366,978,5
not be                 83.54        57.69                                             57.69                      41.23
reclassifie
d into
profit and
loss
Fair value
changes
of other
equity
instrument             83.54        57.69                                             57.69                      41.23
investmen
t
II. Other
comprehe
nsive
income                     -            -                                                 -                          -
that will be       26,078,03   8,308,184.                                         10,149,26                  36,227,29
reclassifie                                                                                             90
d into
profit and
loss
Including:
Other
comprehe
nsive
income                     -            -                                                 -                          -
that will be
reclassifie
d into                  4.46         6.19                                              6.19                       0.65
profit and
loss under
equity
method
Difference
from
conversio
n of
financial
statement                  4           92                                                02             90           26
s in
foreign
currency
   Total
                                                                                                     Monetary Unit: CNY
                                                   Increase in current    Decrease in current
           Item                Opening Balance                                                      Closing Balance
                                                         period                 period
Statutory surplus
reserves
           Total                1,464,752,476.00          7,142,624.00                                1,471,895,100.00
                                                                                                           Monetary Unit: CNY
                   Item                               Current Period                              Previous Period
 Undistributed      profit       before
 adjustment at the end of the last year
 Undistributed profit after adjustment
 at the beginning of year
 Plus: Net profit attributable to owners
 of the parent company for the current                          10,365,383,281.80                           7,955,554,351.73
 period
 Less: Provision of statutory surplus
 reserves
 Ordinary share dividends payable                                4,773,919,306.55                           3,004,207,328.27
 Plus: Other transfer in                                                  15,626.841
 Undistributed profits at the end of the
 period
Note: 1. Other transfers were the investment of the disposal of other equity instruments of Tourism
Company as the subsidiary of the Company in the current period, which was due to the impact of
transfers to retained earnings of relevant changes in fair value.
                                                                                                           Monetary Unit: CNY
                                           Current Period                                      Previous Period
           Item
                                Revenue                   Cost of sales                Revenue              Cost of sales
 Primary business           24,766,121,998.49          3,214,253,716.91          20,415,170,469.09          2,885,685,151.63
 Other business                 357,441,273.13             155,274,677.11              227,091,255.28            66,746,336.68
           Total            25,123,563,271.62          3,369,528,394.02          20,642,261,724.37          2,952,431,488.31
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through
audit is negative
□Yes ? No
Details:
                                                                                                           Monetary Unit: CNY
  Contract category                        Liquor sales                                            Total
 Commodity type
 Including:
 Medium and high
 grade liquor
 Other liquor                                         2,633,575,939.85                                      2,633,575,939.85
 By operating
 segment
 Including:
 Domestic                                           24,613,436,212.24                                      24,613,436,212.24
 Outbound                                                 152,685,786.25                                      152,685,786.25
 Market or customer
 type
Including:
Contract type
Including:
Commodity sales
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
         Total                       24,766,121,998.49                                24,766,121,998.49
                                                                                     Monetary Unit: CNY
                   Item               Current Period                          Previous Period
Consumption tax                               2,753,367,764.57                        2,251,935,882.19
Urban maintenance and construction
tax
Educational surcharge                           158,966,546.28                          122,600,539.31
Property tax                                     75,661,405.90                           74,979,375.32
Land use tax                                     35,777,691.90                            30,117,077.49
Stamp duty                                       23,111,385.94                           17,354,822.83
Local education surcharge                       105,978,159.07                           81,733,692.89
Others                                                 156,944.59                            112,227.80
                 Total                        3,523,948,287.48                        2,864,901,542.85
                                                                                     Monetary Unit: CNY
                   Item               Current Period                          Previous Period
Advertising promotion expense                 1,880,179,769.91                        1,769,053,962.56
Promotion expense                               712,641,702.96                        1,139,273,684.38
Employee compensation                           355,699,286.88                          357,659,249.63
Storage and logistics costs                     138,589,417.94                          100,059,219.52
Others                                          361,660,868.33                          233,165,488.47
                 Total                        3,448,771,046.02                         3,599,211,604.56
                                                                                     Monetary Unit: CNY
                   Item                      Current Period                       Previous Period
 Employee compensation                                467,979,805.98                        540,848,428.46
 Depreciation and amortization                        132,084,757.27                        128,396,634.90
 Management fee and service
 expense
 Others                                               446,996,671.29                        312,953,021.17
                   Total                             1,162,422,257.23                      1,056,116,367.85
                                                                                         Monetary Unit: CNY
                   Item                      Current Period                       Previous Period
 Comprehensive research and
 development expenses
                   Total                              206,248,486.57                        137,712,329.78
Note: 1. The current period increased CNY 68,536,156.79 compared with previous period with an
increase by 49.77%, mainly due to increase in research and development projects.
                                                                                         Monetary Unit: CNY
                   Item                      Current Period                       Previous Period
 Interest expenses                                    229,673,136.36                        195,125,786.35
 Less: Interest income                                505,746,664.32                        419,897,541.04
 Losses from currency exchange                         -16,072,149.45                          3,646,806.44
 Handling charges                                        4,070,627.61                          2,280,061.14
 Amortization      of      unrecognized
 financing costs
                   Total                             -286,376,927.481                       -216,885,999.21
Note: The current period decreased CNY 69,490,928.27 compared with previous period with a
decrease by 32.04%, mainly due to increase in interest income of capital.
                                                                                         Monetary Unit: CNY
                   Item                      Current Period                       Previous Period
 Government grants                                      34,931,161.52                        50,986,059.68
 Individual income tax commission
 refund
                                                                                         Monetary Unit: CNY
                   Item                      Current Period                       Previous Period
 Investment income from long-term
 equity investments under the equity                    84,626,608.53                       195,543,058.40
 method
 Investment income gained during the                     6,813,617.83
 period of holding        held-for-trading
 financial assets
 Investment income from disposal of
 held-for-trading financial assets
 Dividend income gained during the
 period of holding other equity                                      8,078,717.93                           6,662,660.52
 instrument investment
 Investment income           from    early
                                                                     -4,241,494.76
 redemption of bonds
                  Total                                         104,715,915.31                            202,205,718.92
Other statements:
Note: There is no major restriction on the repatriation of the Company's investment income.
Including: investment income from long-term equity investments under the equity method:
                                Item                                       Current Period              Previous Period
Huaxi Securities Co., Ltd.                                                       43,897,917.31             169,638,351.75
Luzhou Laojiao Postdoctoral              Workstation   Technology
Innovation Co., Ltd.
Sichuan Development Wine Investment Co., Ltd.                                         162,805.88             -1,127,623.31
Sichuan Tongniang Baijiu Industry Technology Research
Institute Co., Ltd.
CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd.                        40,180,596.18              27,154,767.24
                              Subtotal                                           84,626,608.53             195,543,058.40
Including: dividend income gained during the period of holding other equity instrument investment:
                                Item                                       Current Period              Previous Period
North Chemical Industries Co., Ltd.                                                    70,359.97                   62,542.20
Guotai Junan Securities Co., Ltd.                                                    8,008,357.96             6,595,118.32
Luzhou Zunchi Automobile Service Co., Ltd.                                                                          5,000.00
                              Subtotal                                               8,078,717.93             6,662,660.52
                                                                                                       Monetary Unit: CNY
                  Item                                 Current Period                           Previous Period
 Held-for-trading financial assets                                  -12,023,622.50                          6,352,241.79
                  Total                                             -12,023,622.50                          6,352,241.79
                                                                                                       Monetary Unit: CNY
                  Item                                 Current Period                           Previous Period
 Bad debt loss of other receivables                                   -924,947.31                          81,132,441.19
 Bad debt loss of accounts receivable                                 -240,771.03                                  -6,326.31
                  Total                                              -1,165,718.34                         81,126,114.88
                                                                                                     Monetary Unit: CNY
                    Item                               Current Period                         Previous Period
 Gains from disposal of non-current
 assets
 Including: Gains from disposal of
 fixed assets
 Gains from disposal of intangible
 assets
 Gains from disposal of use right
                                                                        -6,320.05
 assets
                                                                                                     Monetary Unit: CNY
                                                                                             The amount included in the
            Item                      Current Period                Previous Period            extraordinary gains and
                                                                                             losses of the current period
 Government grants                                                             770,893.47
 Others                                      8,326,631.57                     6,916,063.05                 8,326,631.57
 Compensation for default                   19,506,788.74                    19,559,751.36                19,506,788.74
            Total                           27,833,420.31                    27,246,707.88                27,833,420.31
                                                                                                     Monetary Unit: CNY
                                                                                             The amount included in the
            Item                      Current Period                Previous Period            extraordinary gains and
                                                                                             losses of the current period
 Donation                                    8,710,000.00                    60,835,600.00                 8,710,000.00
 Losses from damage
 retirement of non-current                  10,778,148.07                      806,635.52                 10,778,148.07
 assets
 Others                                        471,344.99                     5,075,251.57                   471,344.99
            Total                           19,959,493.06                    66,717,487.09                19,959,493.06
                                                                                                     Monetary Unit: CNY
                    Item                               Current Period                         Previous Period
 Current period income tax                                     3,422,712,211.76                        2,872,508,387.20
 Deferred income tax                                              21,450,324.10                         -258,811,286.01
                    Total                                     3,444,162,535.861                        2,613,697,101.19
Note: 1. The current period increased CNY 830,465,434.67 compared with previous period with an
increase by 31.77%, mainly due to the increase in corporate income tax with the increase in profits.
                                                                                                  Monetary Unit: CNY
                            Item                                                 Current Period
 Total profit                                                                                     13,854,751,640.29
 Income tax expenses determined by statutory/applicable
 tax rate
 Impact from subsidiaries’ different tax rates                                                         -2,160,306.98
 Impact from adjust for impact from income tax expense in
 previous period
 Impact from non-taxable income                                                                       -13,330,549.27
 Impact from non-deductible costs, expenses and losses                                                  5,127,246.40
 Impact from deductible loss of unrecognized deferred
                                                                                                      -21,129,993.66
 income tax assets in prior period
 Impact from deductible temporary difference or losses
 due to unrecognized deferred tax asset in current period
 Income tax impact of expected pre-tax deductible
 amounts of restricted shares in future periods that are                                                6,656,792.25
 less than the recognized cost and expenses
 Income tax expense                                                                                3,444,162,535.86
Details in Note 7.33. Other comprehensive income.
                                                                                                  Monetary Unit: CNY
                  Item                                Current Period                       Previous Period
 Recovery of saving deposits
 involving contract disputes
 Government grants                                               40,104,471.04                        50,548,967.43
 Interest income from bank deposit                             582,623,274.18                        376,116,197.20
 Others                                                        242,137,090.66                        390,669,424.61
                  Total                                        868,192,251.33                        970,002,588.49
                                                                                                  Monetary Unit: CNY
                  Item                                Current Period                       Previous Period
 Cash paid for expenses                                       2,987,783,797.32                     3,304,969,529.27
 Restricted court frozen funds paid                               1,181,683.24
                  Total                                       2,988,965,480.56                     3,304,969,529.27
                                                                                                  Monetary Unit: CNY
                  Item                                Current Period                       Previous Period
 Cash deposits received for L/G                           509,017.10
 Cash deposits received for travel                      1,400,000.00
                  Total                                 1,909,017.10
                                                                                           Monetary Unit: CNY
                  Item                      Current Period                          Previous Period
 Cash paid for reducing registered
 capital
 Rating and registration fee for issuing
 bonds
 Net losses from early redemption of
 bonds
 Cash paid for rent of right-of-use
 assets
 Cash deposits paid for L/G                                                                    10,509,017.10
                  Total                                21,594,912.99                           22,371,107.22
                                                                                           Monetary Unit: CNY
                  Item                      Current Period                          Previous Period
 flow from operating activities:
 Net profit                                        10,410,589,104.43                        7,937,262,386.93
 Plus: Provision for asset impairment                   1,165,718.34                           -81,126,114.88
 Depreciation of fixed asset, oil and
 gas assets and productive biological                547,618,213.97                           486,856,196.13
 assets
 Depreciation of right-of-use assets                   14,638,577.02                           12,910,912.35
 Amortization of intangible assets                     80,604,041.96                           64,178,235.56
 Amortization of long-term deferred
 expense
 Losses from disposal of fixed assets,
 intangible assets and other long-term                -19,805,093.70                              347,429.88
 assets (Gains use “-”)
 Losses from retirement of fixed
 assets (Gains use “-”)
 Losses from change in fair value
 (Gains use “-”)
 Financial expenses (Gains use “-”)                   114,617,073.40                          128,173,454.89
 Losses on investments (Gains use “-
                                                     -104,715,915.31                          -202,205,718.92
 ”)
 Decrease in deferred income tax
                                                      -19,224,200.66                          -260,399,346.46
 assets (Increase uses “-”)
 Increase in deferred income tax
 liabilities (Decrease uses “-”)
 Decrease in inventories (Increase
                                                   -2,563,169,208.05                        -2,581,909,735.55
 use “-”)
 Decrease in operating receivables
 (Increase use “-”)
 Increase in operating payables
                                                      -543,252,672.53                        3,681,022,162.57
 (Decrease use “-”)
 Others
 Net cash flows from operating
 activities
 activities not involving cash:
 Conversion of debt into capital
 Convertible corporate bonds due
 within one year
 Fixed assets under financing lease
 equivalents:
 Closing balance of cash                           17,729,006,591.87                        13,402,528,941.83
 Less: Opening balance of cash                     13,402,528,941.83                        11,568,195,062.81
 Plus: Closing balance of cash
 equivalents
 Less: Opening balance of cash
 equivalents
 Net change in cash and cash
 equivalents
                                                                                            Monetary Unit: CNY
                    Item                    Opening Balance                         Closing Balance
 Including: Cash on hand                                   28,711.93                                26,281.86
          Unrestricted bank deposit                17,711,121,431.52                        13,391,713,104.08
          Other unrestricted cash and
 cash equivalents
 equivalents
 Including: Cash and cash equivalent
 with restriction to use of parent                     28,521,619.381                          110,965,638.73
 company and subsidiaries
Note: 1. The cash and cash equivalent with restriction to use are CNY 28,521,619.38, of which, CNY
interest on an accrual basis and CNY 1,181,683.24 is the frozen fund by the court.
endorsement of bank acceptances receivable in the current and previous periods was CNY
from sales of goods or rendering of services", "cash paid for goods and services" and "cash paid for the
purchase of fixed assets, intangible assets and other long-term assets" of the cash flow budget.
                                                                                            Monetary Unit: CNY
                  Item                    Closing book balance                   Reason for restriction
 Cash and cash equivalents                              17,339,936.14    Provision for fixed deposit interest on
                                                                          an accrual basis
 Cash and cash equivalents                                10,000,000.00   Bank cash deposits for L/G
 Cash and cash equivalents                                1,181,683.241   Frozen fund by the court
                  Total                                   28,521,619.38
Note: 1. According to the civil ruling issued by People's Court of Jiangyang District, Luzhou City,
Sichuan Province, a total of CNY 516,806.00 bank deposits of Brewing Company, a subsidiary of the
Company, were frozen in accordance with laws for the case of contractual dispute. The first trial of the
relevant case has been decided on 12 January 2023, based on which Brewing Company was not
required to pay the relevant liabilities. 2 According to the civil ruling issued by People's Court of
Dongchangfu District, Liaocheng City, Shandong Province, a total of CNY 664,877.24 bank deposits of
Boda Marketing Company, a subsidiary of the Company, were frozen in accordance with laws for the
case of contractual dispute. As of 31 December 2022, the case was not decided. Based on the
explanation issued by the third-party law firm, it was predicted that the probability of the rejection of the
claims of the plaintiff by People's Court was over 60%.
                                                                                            Monetary Unit: CNY
                             Closing Balance in Foreign
           Item                                              Exchange Rate           Closing Balance in CNY
                                      Currency
 Cash at Bank and on Hand
 Including: USD                          28,705,752.99                     6.9646              199,924,087.27
          EUR                               189,276.07                     7.4229                1,404,977.34
          HKD                             4,867,957.63                    0.89327                4,348,400.51
          GBP                               140,099.22                     8.3941                1,176,006.86
          AUD                                 2,367.12                     4.7138                      11,158.13
 Accounts Receivable
 Including: USD                             185,923.24                     6.9646                1,294,881.00
          EUR
          HKD                             4,982,129.53                    0.89327                4,450,386.85
 Long-term Loans
 Including: USD
          EUR
          HKD
 Other Receivables
 Including: HKD                           1,531,409.56                    0.89327                1,367,962.22
 Accounts Payable
 Including: USD                             305,139.48                     6.9646                2,125,174.42
          HKD                             2,335,432.69                    0.89327                2,086,171.96
 Other Payables
 Including: USD                             185,610.39                     6.9646                1,292,702.12
            HKD                            33,389,449.95                      0.89327                   29,825,793.96
 Non-current liabilities due
 within one year
 Including: USD                               66,782.74                           6.9646                    465,115.07
            HKD                             4,375,620.00                      0.89327                     3,908,610.08
 Lease liabilities
 Including: USD                              201,558.98                           6.9646                  1,403,777.67
            HKD                              647,342.20                       0.89327                       578,251.37
entity, shall disclose its main foreign business place, bookkeeping standard currency and
selection basis, and shall also disclose the reason for the change of the bookkeeping standard
currency
? Applicable □ N/A
                                                                        Bookkeeping
                     Company                      Operation site                                Choosing Reason
                                                                          currency
Luzhou Laojiao International Development                                                   Currency in the registration
                                                Hong Kong, China             HKD
(Hong Kong) Co., Ltd.                                                                      place
Luzhou Laojiao Commercial Development                                                      Currency in the registration
                                                      USA                    USD
(North America) Co., Ltd.                                                                  place
                                                                                           Currency in the registration
Mingjiang Co., Ltd.                                   USA                    USD
                                                                                           place
                                                                                                    Monetary Unit: CNY
                                                                                           Amount included in profit or
             Item                      Amount                      Presentation
                                                                                            loss of the current period
 Related to assets                         33,704,323.80   Deferred income                                6,626,690.48
 Related to income                         28,304,471.04   Other income                                 28,304,471.04
             Total                         62,008,794.84                                                34,931,161.52
□Applicable ? N/A
There is no business combination under common control during current period.
The basic information of the transaction, the basis of the transaction constitutes the reverse purchase,
whether the assets and liabilities retained by the listed company constitute the business and its basis,
the determination of the merger cost, and the adjustment of the equity amount and its calculation
according to the equity transaction:
There is no reverse purchase during current period.
Whether there is a situation of losing control after disposing the investment in the subsidiary only once
□ Yes ?No
Whether there is a situation of disposing the investment in the subsidiary through several transactions
step by step and losing control during the period
□ Yes ?No
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary,
liquidating a subsidiary) and its related situation:
As the Note 3.6, two subsidiaries were newly established in the reporting period: Luzhou Laojiao
International Trade (Hainan) Co., Ltd. and Luzhou Laojiao Technology Innovation Co., Ltd.; two
subsidiaries were liquidated and cancelled: Luzhou Laojiao Bosheng Hengxiang Liquor Sales Co., Ltd.
and Luzhou Laojiao Tourism Culture Co., Ltd.
                    Major                                        Shareholding Proportion
   Name of                         Place of       Nature of                                     Acquisition
                   business
  Subsidiaries                   registration     business        Direct         Indirect        method
                   location
 Luzhou
                                                Baijiu
 Laojiao
                 Luzhou        Luzhou           manufacture        100.00%                    Investment
 Brewing Co.,
                                                and sales
 Ltd.
 Luzhou Red
                                                                                              Business
 Sorghum                                        Agricultural
                                                                                              combination
 Modern                                         product
                 Luzhou        Luzhou                                               60.00%    under
 Agricultural                                   planting and
                                                                                              common
 Development                                    sales
                                                                                              control
 Co., Ltd.
 Luzhou          Luzhou        Luzhou           Baijiu sales                                  Investment
 Laojiao Sales
Co., Ltd.
Luzhou
Laojiao
Nostalgic
                 Luzhou    Luzhou    Baijiu sales                      100.00%    Investment
Liquor
Marketing
Co., Ltd.
Luzhou
Laojiao
Custom           Luzhou    Luzhou    Baijiu sales                       15.00%    Investment
Liquor Co.,
Ltd.
Luzhou
Laojiao
Selected
                 Luzhou    Luzhou    Baijiu sales                      100.00%    Investment
Supply Chain
Management
Co., Ltd.
Guangxi
Luzhou
Laojiao                              Red wine
Imported         Qinzhou   Qinzhou   production                        100.00%    Investment
Liquor                               and sales
Industry Co.,
Ltd.
Luzhou Dingli
Liquor
                 Luzhou    Luzhou    Baijiu sales                      100.00%    Investment
Industry Co.,
Ltd.
Luzhou Dingyi
Liquor
                 Luzhou    Luzhou    Baijiu sales                      100.00%    Investment
Industry Sales
Co., Ltd.
Luzhou
Laojiao New
Liquor           Luzhou    Luzhou    Baijiu sales                      100.00%    Investment
Industry Co.,
Ltd.
Luzhou                               Wine import
Laojiao I & E    Luzhou    Luzhou    and export                        100.00%    Investment
Co., Ltd.                            trade
Luzhou
Laojiao Boda
Liquor
                 Luzhou    Luzhou    Baijiu sales                       75.00%    Investment
Industry
Marketing
Co., Ltd.
Luzhou
Laojiao
Bosheng
                 Luzhou    Luzhou    Baijiu sales                       75.00%    Investment
Hengxiang
Liquor Sales
Co., Ltd.
Luzhou
Laojiao Fruit                        Fruit wine
                 Luzhou    Luzhou                                       41.00%    Investment
Wine Industry                         sales
Co., Ltd.
Mingjiang Co.,
                 America   America   Baijiu sales                       54.00%    Investment
Ltd.
Luzhou                               Food import
Laojiao          Hainan    Hainan                                      100.00%    Investment
                                     and export
International
 Trade
 (Hainan) Co.,
 Ltd.
 Luzhou
                                             Technology
 Pinchuang
                  Luzhou      Luzhou         development         100.00%                    Investment
 Technology
                                             and service
 Co., Ltd.
 Luzhou
 Laojiao
                                             Baijiu sales,
 Tourism          Luzhou      Luzhou                             100.00%                    Investment
                                             tourism
 Culture Co.,
 Ltd.
 Luzhou
 Laojiao
 International
                  Hong Kong   Hong Kong      Wine sales           55.00%                    Investment
 Development
 (Hong Kong)
 Co., Ltd.
 Luzhou
 Laojiao
 Commercial
                                             Business
 Development      America     America                                            100.00%    Investment
                                             development
 (North
 America) Co.,
 Ltd.
 Luzhou
 Laojiao
 Electronic       Luzhou      Luzhou         Wine sales           90.00%                    Investment
 Commerce
 Co., Ltd.
 Luzhou
 Laojiao
 Whitail Liquor   Luzhou      Luzhou         Wine sales                           35.00%    Investment
 Industry Co.,
 Ltd. Note
 Luzhou
                                             Fermented
 Baonuo
                  Luzhou      Luzhou         product             100.00%                    Investment
 Biotechnology
                                             manufacture
 Co., Ltd.
 Luzhou                                                                                     Business
                                             Health care
 Laojiao Health                                                                             combination
                                             wine
 Liquor           Luzhou      Luzhou                             100.00%                    under
                                             manufacture
 Industry                                                                                   common
                                             and sales
 Co.,Ltd.                                                                                   control
                                                                                            Business
 Luzhou
                                                                                            combination
 Laojiao Health                              Health care
                  Luzhou      Luzhou                                             100.00%    under
 Sales Co.,                                  wine sales
                                                                                            common
 Ltd.
                                                                                            control
 Luzhou
 Laojiao New
                  Luzhou      Luzhou         Baijiu sales         40.00%         100.00%    Investment
 Retail Co.,
 Ltd.
 Luzhou
 Laojiao                                     Technology
 Technology       Chengdu     Chengdu        development          40.00%          60.00%    Investment
 Innovation                                  and service
 Co., Ltd.
Statement for that the proportion of share-holding is different from the proportion of voting rights:
As the Note 3.6, the Company holds less than 51% shares of Luzhou Laojiao Custom Liquor Co., Ltd.,
Luzhou Laojiao Fruit Liquor Industry Co., Ltd., and Luzhou Laojiao Whitail Liquor Industry Co., Ltd. but
in these companies’ board, among the five members, the Company has sent three persons, which is in
the majority. The Company has substantial control over these companies, so they are included in the
consolidation scope.
                                                                                                                               Monetary Unit: CNY
                                                               Gains and losses
                               Proportion of share                                           Dividends paid to
                                                              attributable to non-                                       Closing balance of
                                holdings of non-                                              non-controlling
  Name of subsidiary                                               Controlling                                             non-controlling
                                   Controlling                                              shareholders during
                                                             shareholders during                                        shareholders interest
                                  shareholders                                                 current period
                                                                 current period
 Luzhou Laojiao Boda
 Liquor Industry                              25.00%                   17,783,639.47             16,594,850.58                    61,843,872.29
 Marketing Co., Ltd.
          Total                                                        17,783,639.47             16,594,850.58                    61,843,872.29
                                                                                                                               Monetary Unit: CNY
                                 Closing Balance                                                       Opening Balance
 Name                                                      Non-                                                                   Non-
   of                  Non-                   Curre                                           Non-                 Curre
           Curre                                          curren        Total      Curre                                         curren       Total
 subsid               curren      Total          nt                                          curren      Total        nt
             nt                                               t        liabiliti     nt                                              t       liabiliti
  iary                   t       assets       liabiliti                                         t       assets     liabiliti
           assets                                         liabiliti       es       assets                                        liabiliti      es
                      assets                     es                                          assets                   es
                                                             es                                                                     es
 Luzho
 u
 Laojia
 o
 Boda        275,4                275,4        28,04                    28,04      384,3                 384,9      142,3                     142,3
 Liquor                                                                                      664,9
 Indust                                                                                      98.84
 ry           1.12                 1.12           97                       97       8.76                  7.60       4.01                      4.01
 Marke
 ting
 Co.,
 Ltd.
                                                                                                                               Monetary Unit: CNY
                                     Current Period                                                      Previous Period
  Name of                                            Total                                                             Total
 subsidiary       Operating                       comprehe            Operating      Operating                      comprehe            Operating
                                 Net profit                                                           Net profit
                   revenue                          nsive             cash flow       revenue                         nsive             cash flow
                                                   income                                                            income
 Luzhou
 Laojiao
 Boda                                                                                                         -              -
 Liquor                                                                                               35,909,06      35,909,06
 Industry                                                                                                  9.79           9.79
 Marketing
 Co., Ltd.
No such cases for the reporting period.
scope of consolidated financial statements
There is no structural entity incorporated into the scope of consolidated financial statements in the
reporting period.
  Name of joint           Major                                              Shareholding proportion
                                          Place of       Business                                              Accounting
 venture/associ          business
                                        registration      nature              Direct           Indirect         Method
      ates               location
 Important joint
 ventures:
 none
 Important
 associates:
 Huaxi
                       Chengdu,     Chengdu,
 Securities                                            Securities               10.39%                       Equity method
                       Sichuan      Sichuan
 Co., Ltd.
Note: 1. The Company has the substantive decision-making power, so the Company still has significant
influence on Huaxi Securities.
                                                                                                          Monetary Unit: CNY
                                             Closing Balance/Amount in current         Opening Balance/Amount in previous
                                                          period                                     period
 Current assets                                               89,547,378,203.44                           86,844,635,628.06
 Non-current assets                                            8,199,779,781.47                            8,950,278,369.10
 Total assets                                                 97,747,157,984.91                           95,794,913,997.16
 Current liabilities                                          54,767,331,978.36                           57,157,134,622.07
 Non-current liabilities                                      20,539,402,724.68                           16,233,476,784.79
 Total liabilities                                            75,306,734,703.04                           73,390,611,406.86
 Non-controlling shareholder interest                                22,000,726.84                           26,409,206.44
 Shareholder interest attributable to
 parent company
 Share of net assets calculated based
 on shareholding proportion
 Adjusted
 --Goodwill
 --Unrealized profits of internal
 transactions
 --Others                                                           167,466,735.90                          167,466,735.90
 Book value of equity investments in
 associate companies
 Fair value of equity investments in
 associate companies that have public
 quote
 Operating revenue                                       3,375,583,530.03                      5,121,995,492.55
 Net profit                                                422,356,594.84                      1,632,123,985.51
 Net profit from discontinued
 operation
 Other comprehensive income                               -119,327,423.67                        -284,563,526.94
 Total comprehensive income                                303,029,171.17                      1,347,560,458.57
 Dividends from associate companies
 this year
                                                                                              Monetary Unit: CNY
                                        Closing Balance/Amount in current    Opening Balance/Amount in previous
                                                     period                                period
 Joint ventures:
 Total following items calculated on
 the basis of shareholding proportion
 Associate companies:
 Total book value of investments                           169,959,961.12                        133,416,070.92
 Total following items calculated on
 the basis of shareholding proportion
 --Net profit                                                -3,456,109.80                         -8,112,270.24
 -- Total comprehensive income                               -3,456,109.80                         -8,112,270.24
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co., Ltd., Sichuan Development Wine Investment Co., Ltd., Sichuan Tongniang Baijiu
Industry Technology Research Institute Co., Ltd. and CTS Luzhou Laojiao Cultural Tourism
Development Co., Ltd.
to transfer funds to the Company
None
None
None
None
The Company's primary financial instruments include monetary capital, trading financial assets,
accounts receivable, receivables financing, receivables other than tax refundable, other equity
instruments, bills payable, accounts payable, other payables, lease liabilities, some other current
liabilities and loans. A detailed description of each financial instrument is set out in Note V and notes to
the Consolidated Financial Statement.
Risks related to these financial instruments, and risk management policies the Company has adopted
to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk variable
rarely changes in isolation, and the correlation between variables will have a significant effect on the
final impact amount of the change of a risk variable, the following content is based on the assumption
that the change of each variable is independent.
Risk management objective: The Company strikes an appropriate balance between risk and return, and
strives to minimize the negative impact of risk on the Company's operating performance and maximize
the interests of shareholders and other equity investors.
Risk management policy: The Board of Directors shall be responsible for planning and establishing a
risk management framework, formulating risk management policies and related guidelines, and
supervising the implementation of risk management measures. The Risk Management Committee shall
carry out risk management through close collaboration (including the identification, evaluation and
avoidance of relevant risks) with other business units of the Company in accordance with the policies
approved by the Board of Directors. The internal audit department shall conduct regular audits on risk
management controls and procedures and report the results to the Audit Committee.
The Company has formulated risk management policies to identify and analyze the risks it faces,
clarifying specific risks and covering many aspects such as credit risk, liquidity risk and market risk
management. On a regular basis, the Company evaluates the specific marketing environment and
various changes in the Company's business operations to determine whether any risk management
policy and system should be updated. The Company diversifies the risks to financial instruments
through appropriately diversified investments and business portfolios, and reduces the risk of
concentration in any single industry, specific geographic area or specific counterparty by formulating
appropriate risk management policies.
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations,
causing financial losses to the other party. The Company only trades with recognized, reputable, and
large third parties. In accordance with the Company's policy, the terms of sale with customers are
based on transactions of payment before delivery, with only a small amount of credit transactions, and
     credit review for all customers who require credit to trade. In addition, the Company continuously
     monitors and controls the balance of the receivables to ensure that the Company does not face
     significant bad debt risks. In addition, the Company makes full provision for expected credit losses at
     each balance sheet date based on the collection of receivables. Therefore, the Company's
     management believes that the Company's credit risk has been greatly reduced.
     The Company's working capital is deposited in banks with high credit rating, so the credit risk of working
     capital is low.
     The Company's risk exposures are spread across multiple contract parties and customers in multiple
     geographies, with customers in the commerce industry in addition to the alcohol distribution industry
     (the main industry). No systemic risk has been identified in the relevant industries. Therefore, the
     Company has no significant credit concentration risk. As at 31 December 2022, the balance of the top
     five customers of the Company's accounts receivable amounted to CNY 6,008,800, accounting for
     Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business development
     needs or to repay debts due and other payment obligations. The Company has sufficient working
     capital. The liquidity risk is extremely small. The Company's objective is to use a variety of financing
     instruments such as bank clearing and bank loans to maintain a balance between financing
     sustainability and flexibility. As at 31 December 2022, the Company has been able to meet its own
     continuing operation requirements through the use of cash flow from operations.
     The analysis of the financial liabilities held by the Company based on the maturity period of the
     undiscounted remaining contractual obligations is as follows:
                                                             Closing Balance
   Item                           Contract amount
                 Book value                             Within 1 year      1-2 years        2-3 years         Over 3 years
                                   not discounted
Notes
payable
Accounts
payable
Other
payable
Non-
current
liabilities
due
within
one year
Other
current         333,627,225.47      333,627,225.47     333,627,225.47
liabilities
Long-
term           3,179,600,000.00    3,179,600,000.00                      20,400,000.00   1,919,200,000.00   1,240,000,000.00
loans
Bonds
payable
Lease
liabilities
 Subtotal     10,117,783,246.57   10,126,832,335.15   3,912,986,705.05   28,824,462.32   4,924,354,370.00   1,260,666,797.78
The foreign exchange risk refers to the risk of loss due to exchange rate changes. Apart from the three
subsidiaries of the Company which make purchases and sales in USD and HKD, the other major
business activities are denominated and settled in CNY. The Company closely monitors the impact of
exchange rate movements on the Company's foreign exchange risk. As at 31 December 2022, the
Company's assets and liabilities are mainly in CNY balance. The Company's management considers
the impact of changes in foreign exchange risk on the Company's financial statements to be minimal.
The Company's interest rate risk mainly arises from the borrowings. Financial liabilities based on the
floating interest rate will cause the cash flow interest rate risk to the Company, and financial liabilities
based on the fixed interest rate the fair value interest rate risk. The Company will determine the
corresponding proportion between the contracts with fixed interest rate and those with floating interest
rate in combination with current market condition.
Other price risk refers to the risk of fluctuation caused by market price changes other than foreign
exchange risk and interest rate risk, whether these changes are caused by factors related to a single
financial instrument or its issuer or all similar financial instruments traded in the market. Other price
risks faced by the Company mainly come from investments in other equity instruments measured at fair
value.
                                                                                             Monetary Unit: CNY
                                                          Closing fair value
         Item
                             Level 1              Level 2                  Level 3                 Total
 measurement at fair           --                    --                        --                   --
 value
 financial assets
 assets measured at
 fair value with their
 changes included
 into current
 profits/losses
 management                                                             1,073,466,780.37      1,073,466,780.37
 products
 other equity             1,102,278,852.24                                 34,458,125.87       1,136,736,978.11
 instruments
 receivable financing
 Total assets
 continuously
 measured at fair
 value
 measurement at fair          --                   --                    --                     --
 value
discontinuously within Level 1 of the fair value hierarchy
The listed companies in mainland China determine the fair value of other equity instrument investment
according to the closing price on the last trading day of Shenzhen Stock Exchange or Shanghai Stock
Exchange at the period-end. The companies listed in Hong Kong determine the fair value of other
equity instrument investment according to the closing price of Hong Kong Dollar on the last trading day
of Hong Kong Stock Exchange at the period-end and the median price of CNY exchange rate disclosed
on the same day by China Foreign Exchange Trade System.
important parameters for continuously and discontinuously within Level 2 of the fair
value hierarchy
None
important parameters for continuously and discontinuously within Level 3 of the fair
value hierarchy
Trading financial assets are wealth management products of the collective asset management plan and
are measured at fair value based on the amount calculated on the basis of the net unit value of the
underlying assets as published on the official website of the asset manager.
Accounts receivable financing: As the timing and price of bills discounted may not be reliably estimated
due to the short maturity of the bills all being less than one year and the endorsement of the negotiable
bills being valued at book value, the Company measures the bills receivable at their book value as a
reasonable estimate of fair value.
Other equity instrument investment: Due to no significant changes in business environment, business
condition and financial situation of invested companies, the Company shall measure the fair value
according to the lower one between investment cost and the share of net assets enjoyed by invested
companies on the base date as the reasonable estimation.
beginning carrying value and the ending carrying value and sensitivity analysis on
unobservable parameters
None
conversion happens if conversion happens among continuous fair value
measurement items at different level
None
changes
None
None
                                                                            Shareholding
                                                                                               Voting rights
                     Registration                                           proportion by
 Parent company                      Business nature   Registered capital                    proportion by the
                       place                                                 the parent
                                                                                             parent company
                                                                              company
                                     Investment and
 Luzhou Laojiao
                   Luzhou, Sichuan   asset             2,798,818,800.00            25.89%             50.75%
 Group Co., Ltd.
                                     management
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rights
proportion by the parent company is that on 27 May 2021, Laojiao Group and XingLu Investment
Group, the second biggest shareholder, renewed the concerted action agreement which is valid as of
business development and make decisions by shareholders meeting and board of directors according
to the company law and other relevant laws and regulations and the articles of association, the
parties should adopt the consistent actions. During the effective period of this agreement, before any
party submits proposals involving the major issues of the Company's business development to the
shareholders meeting or exercise the voting rights at the shareholders meeting and the board of
directors, the internal coordination for relevant proposals and voting events shall be conducted by
persons acting in concert. If there are different opinions, it will be subject to Laojiao Group’s opinion.
The nature of parent company: Limited liability company (state-owned); Registration place: Ai
Rentang Square, China Baijiu Golden Triangle Liquor Industry Park, Luzhou, Sichuan Province;
Business Scope: General project: Social economy consulting services; business management
consulting; financial consulting; business headquarters management; import and export agency; trade
brokerage; crops planting services; trees planting operation; elder care services; tourism
development project planning and consulting; technical agency services; engineering and
technological research and experimental development; display device manufacturing; supply chain
management services; technical services, technical development, technical consulting, technical
communication, technical transfer, and technical promotion; domestic freight transport agency; and
equity fund-invested asset management services. It shall also include licensed projects (business
activities can be carried out legally and independently with business license in addition to projects
that must be approved by law): Agency bookkeeping; career intermediary activities; food production;
food sales; and medical services. (business activities that require approval in accordance with laws
can be carried out upon approval of relevant authorities, and the specific business projects shall be
subject to the approval document or license of relevant departments)
The final control party of the Company is SASAC of Luzhou.
For details please see Note 9.1. Interests in subsidiaries.
For details please see Note 9.3. Interests in joint ventures and associates.
Other statements:
There are no other joint ventures or associates that have related party transactions with the Company
in the current period or in the previous period and result in balance.
               Name of Other Related Party                              Relationship with the Company
 Luzhou Jiachuang Wine Supply Chain Management Co.,
                                                        The same parent company
 Ltd.
 Luzhou Laojiao Zhitong Trading Co., Ltd.               The same parent company
 Sichuan Hongxin Financing Guarantee Co., Ltd.          The same parent company
 Sichuan Lianzhong Supply Chain Service Co., Ltd.       The same parent company
 New Shottes Brook Private Company                      The same parent company
 Guangzhou Zhongying Gongyuan Energy Saving
                                                        Sub-subsidiary of parent company
 Technology Co., Ltd.
 Sichuan Yukun Logistics Co., Ltd.                      Sub-subsidiary of parent company
 Sichuan Kangrun Group Construction and Installation
                                                        Sub-subsidiary of parent company
 Engineering Co., Ltd.
 Luzhou Qingxigu Scenic Area Management Co., Ltd.       Sub-subsidiary of parent company
 Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd.        Sub-subsidiary of parent company
 Luzhou Sanrenxuan Liquor Industry Co., Ltd.            Joint venture of parent company
 CTS Luzhou Laojiao Cultural Tourism Development Co.,
                                                        Joint venture
 Ltd.
 Luzhou XingLu Water (Group) Co., Ltd.                  Subsidiary of the second largest shareholder
 Luzhou China Resources Xinglu Gas Co., Ltd.            Subsidiary of the second largest shareholder
 Luzhou XingLu Property Management Co., Ltd.            Subsidiary of the second largest shareholder
 Sichuan Meihe Winery Industry Co.,Ltd.                 Minority shareholder of the subsidiary Fruit Wine Industry
 Luzhou Public Transport Group Co., Ltd.                Subsidiary of the second largest shareholder
 Other subsidiaries of Luzhou XingLu Investment Group
                                                        Other subsidiary of the second largest shareholder
 Co., Ltd.
 Other subsidiaries of Luzhou Laojiao Group Co., Ltd.   Other subsidiary of parent company
Other statements:
Note: As the Note 10.1, the Company will disclose the transactions with XingLu Investment Group and
its controlling enterprises as other related parties of the Company.
Table of purchase of goods / receipt of services
                                                                                                   Monetary Unit: CNY
                                                                                 Whether over
 Name of Related                             Amount in       Approved trading                          Amount in
                         Transaction                                            approved trading
     Party                                 current period        amount                              previous period
                                                                                    amount
 Receipt of
 services:
 Luzhou XingLu
 Investment         Property service,
 Group Co., Ltd.    advertising             26,186,859.88                                             13,609,282.77
 and its other      service, etc.
 subsidiaries
                    Loading and
                    unloading
 Laojiao Group      transportation,
 and its other      technical               27,895,483.79                                             28,428,157.86
 subsidiaries       services,
                    installation
                    services, etc.
 CTS Luzhou
 Laojiao Cultural   Conference fees,
 Tourism            travel service            9,296,122.35                                              5,512,511.56
 Development        fee, etc.
 Co., Ltd.
 Purchase of
 goods:
 Laojiao Group      Raw materials,
 and its other      water, power,          106,345,871.05                                             21,190,526.05
 subsidiaries       etc.
 Luzhou XingLu
 Investment
 Group Co., Ltd.    Gas, water               11,773,961.98                                             11,547,390.36
 and its other
 subsidiaries
 Sichuan Meihe
 Winery Industry    Other wine                                                                            976,637.50
 Co.,Ltd.
 Total                                     181,498,299.05                                             81,264,506.10
Table of sales of goods and rendering of service
                                                                                                   Monetary Unit: CNY
   Name of Related Party                Transaction           Amount in current period   Amount in previous period
 Sales of goods:
 Laojiao Group and its
                               Wine                                      52,481,609.52                  6,885,203.34
 subsidiaries
 XingLu Investment Group
                               Wine                                                                         2,880.00
 and its subsidiaries
 CTS Luzhou Laojiao
 Cultural Tourism                Wine                                          134,111,657.39                     84,299,013.96
 Development Co., Ltd.
 Luzhou Sanrenxuan Liquor
                                 Wine                                          162,125,345.72                     47,171,605.12
 Industry Co., Ltd.
 Rendering of service:
 Luzhou Sanrenxuan Liquor
                                 Rendering of service                                                                496,500.00
 Industry Co., Ltd.
 Total                                                                         348,718,612.63                    138,855,202.42
The Company as lessor:
                                                                                                               Monetary Unit: CNY
                                                                    Leasing income recognized      Leasing income recognized
         Name of lessee             Type of leased asset
                                                                       during current period         during previous period
 Laojiao Group and its
                                 House lease                                       1,681,340.00                     2,690,880.00
 subsidiaries
 Total                                                                             1,681,340.00                     2,690,880.00
The Company as lessee:
                                                                                                               Monetary Unit: CNY
                       Rental expenses        Variable lease
                           of short-term       payments not
                                                                                        Income expense
                         lease simplified     included in the                                                    Increased use
                                                                       Paid rent        of lease liabilities
             Type       treated and low-     measurement of                                                        right assets
                                                                                            undertaken
 Name                  value asset lease    lease liabilities (if
               of
   of                     (if applicable)       applicable)
 lessor      assets
                                 Amoun                  Amoun                 Amoun                Amoun                  Amoun
                       Amoun                Amoun                   Amoun               Amoun                   Amoun
             leased               t in                   t in                  t in                 t in                   t in
                         t in                 t in                    t in                t in                    t in
                                 previo                 previo                previo               previo                 previo
                       current              current                 current             current                 current
                                   us                     us                    us                   us                     us
                       period               period                  period              period                  period
                                 period                 period                period               period                 period
 Laojiao
 Group
            House                                                   1,924,    2,926,
 and its
            lease                                                   834.44    313.09
 subsidi
 aries
 Total
                                                                                                               Monetary Unit: CNY
                    Item                           Amount in current period                   Amount in previous period
 Key management                                                       14,486,473.15                               13,798,986.32
As the Note 7.9, on 10 March 2022, the Company and Luzhou Energy Investment Co., Ltd. jointly
incorporated Luzhou Laojiao Postdoctoral Workstation Technology Innovation Co., Ltd. The Company’s
shareholding ratio is 40.00% measured by equity method; Laojiao Group’s shareholding ratio is 51.00%;
and Luzhou Energy Investment Co., Ltd.’s shareholding ratio is 9.00%.
                                                                                                           Monetary Unit: CNY
                                                          Closing Balance                        Opening Balance
        Item             Related party                            Provision for bad                         Provision for bad
                                               Book value                                Book value
                                                                        debt                                      debt
                       Sichuan Meihe
 Prepayment            Winery Industry           2,961,479.50                            2,961,479.50
                       Co.,Ltd.
                       CTS       Luzhou
                       Laojiao Cultural
 Prepayment            Tourism                       2,379.50
                       Development
                       Co., Ltd.
                       Luzhou XingLu
 Prepayment            Water     (Group)                                                   690,115.49
                       Co., Ltd.
                       New     Shottes
 Prepayment            Brook    private                                                    611,542.54
                       company
                       Luzhou    China
                       Resources
 Prepayment                                                                                    19,536.30
                       Xinglu Gas Co.,
                       Ltd.
                       CTS Luzhou
                       Laojiao Cultural
 Other
                       Tourism                   5,111,743.43           780,587.17       3,590,790.65            354,539.53
 receivables
                       Development
                       Co., Ltd.
                                                                                                           Monetary Unit: CNY
               Item                       Related party                Closing Balance                Opening Balance
                                 Sichuan Lianzhong Supply
 Accounts payable                                                               6,993,503.13                        3,679.25
                                 Chain Service Co., Ltd.
                                 Luzhou Public Transport
 Accounts payable                                                                 469,479.45
                                 Group Co., Ltd.
                                 Guangzhou       Zhongying
 Accounts payable                Gongyuan Energy Saving                                                          355,312.88
                                 Technology Co., Ltd.
                                 Luzhou XingLu Property
 Accounts payable                                                                                                130,000.00
                                 Management Co., Ltd.
                                 CTS      Luzhou    Laojiao
 Accounts payable                Cultural          Tourism                                                         10,838.00
                                 Development Co., Ltd.
                                 Sichuan Yukun Logistics
 Accounts payable                                                                                                   3,851.28
                                 Co., Ltd.
 Contractual liabilities (tax    CTS      Luzhou       Laojiao
 inclusive)                      Cultural             Tourism
                                Development Co., Ltd.
                                Luzhou Jiachuang Wine
 Contractual liabilities (tax
                                Supply Chain Management          4,525,508.00
 inclusive)
                                Co., Ltd.
 Contractual liabilities (tax   Luzhou Sanrenxuan Liquor
 inclusive)                     Industry Co., Ltd.
 Contractual liabilities (tax   Sichuan Lianzhong Supply
 inclusive)                     Chain Service Co., Ltd.
 Contractual liabilities (tax   Luzhou Laojiao      Zhitong
 inclusive)                     Trading Co., Ltd.
 Contractual liabilities (tax   Luzhou Laojiao Group Co.,
 inclusive)                     Ltd.
 Contractual liabilities (tax   Luzhou Yuanhai Lianzhong
 inclusive)                     Supply Chain Co., Ltd.
                                Sichuan Kangrun Group
 Contractual liabilities (tax   Construction        and
 inclusive)                     Installation Engineering
                                Co., Ltd.
 Contractual liabilities (tax   Sichuan Hongxin Financing
 inclusive)                     Guarantee Co., Ltd.
                                Luzhou Qingxigu Scenic
 Contractual liabilities (tax
                                Area Management Co.,                                                460.80
 inclusive)
                                Ltd.
                                Sichuan Lianzhong Supply
 Other payables                                                17,633,148.00                  1,684,148.00
                                Chain Service Co., Ltd.
                                CTS      Luzhou    Laojiao
 Other payables                 Cultural          Tourism         750,000.00                   396,000.00
                                Development Co., Ltd.
                                Luzhou Jiachuang Wine
 Other payables                 Supply Chain Management           360,000.00                  1,500,000.00
                                Co., Ltd.
                                Luzhou Sanrenxuan Liquor
 Other payables                                                   150,000.00                   150,000.00
                                Industry Co., Ltd.
                                Guangzhou       Zhongying
 Other payables                 Gongyuan Energy Saving            140,444.35
                                Technology Co., Ltd.
                                Luzhou Laojiao Group Co.,
 Other payables                                                     80,000.00
                                Ltd.
                                Luzhou Yuanhai Lianzhong
 Other payables                                                                                  50,200.00
                                Supply Chain Co., Ltd.
                                Sichuan Kangrun Group
                                Construction        and
 Other payables                                                                                  34,175.78
                                Installation Engineering
                                Co., Ltd.
? Applicable □ N/A
                                                                                                 Unit: Share
 Total equity instruments granted by the Company in the
 reporting period
 Total equity instruments exercised by the Company in the
 reporting period
 Total equity instruments of the Company expired in the
 reporting period
 Scope of the exercise price of outstanding stock options
 of the Company at the end of the reporting period and                                                               N/A
 remaining contract term
 Scope of the exercise price of other outstanding equity
 instruments of the Company at the end of the reporting                                                              N/A
 period and remaining contract term
Other statements:
Note 1: In September 2022, the Company granted 342,334 shares of the Restricted Share Incentive
Plan for the second time; in December 2022, the Company granted 92,669 shares of the Restricted
Share Incentive Plan for the third time (not registered); the total granted shares of the period were
Note 2: In December 2021, the Company granted 6,928,600 shares of the Restricted Share Incentive
Plan for the first time, and in January 2022, during the payment process after the grant date was
determined, four awardees chose to waive a total of 66,000 restricted shares that the Company had
intended to grant to them due to personal reasons; in September 2022, with seven awardees no longer
eligible, the Company decided to repurchase and retire the 62,310 restricted shares of them which had
been granted but not lifted from restricted sales; the total invalid shares in the period were 128,310
shares.
? Applicable □ N/A
                                                                                                      Monetary Unit: CNY
 Method of determining the fair value of equity instruments   The closing price of restricted stocks on the grant date
 on the grant date                                            deducted the grant price thereof
 Basis to determine number of equity instrument that can      Making the best estimate based on the latest number of
 be exercised                                                 persons who can exercise rights
 Reason for remarkable difference between the estimate
 of the current period and that of previous period                                                                   N/A
 Total amount of equity-settled share-based payments
 included into capital reserves
 Total costs of recognizing equity-settled share-based
 payments in the current period
□ Applicable ? N/A
According to the 22nd Meeting of the 10th Board of Directors of the Company held on 2 September
Restricted Share Incentive Plan was deliberated and approved. With the implementation of the 2021
profit distribution plan of the Company completed, the Company agreed to adjust the granted price of
reserved restricted shares from CNY 92.71 per share to CNY 89.466 per share based on the 2021
Restricted Share Incentive Plan (Draft) of Luzhou Laojiao Co., Ltd. Other than that, all are consistent
with relevant contents in the disclosed Incentive Plan.
On 15 October 2014 and 10 January 2015, the Company disclosed three saving deposits involving
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch, Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amount of
CNY 500 million. The public security organization has investigated, and the investigation of related
cases and the preservation of assets are under way. The Company has initiated a civil procedure to
recover the loss from the responsible unit. As of the period-end, the Company has recovered the
abovementioned saving deposits involving contract disputes with CNY 370,950,500.
Except for the above matters, the Company has no other significant contingencies that need to be
disclosed as the end of 31 December 2022.
disclose
There was no significant contingency in the Company to disclose.
                                                                                               Monetary Unit: CNY
 Profits or dividends planned to distribute                                                     6,219,148,324.03
 Reviewed and approved profits or dividends declared to
 distribute
                                                          Upon the resolution of the Board of Directors, the 2022
                                                          profit distribution plan was approved: Based on the
                                                          current 1,471,987,769 shares, a cash dividend of CNY
                                                          existing shares held, representing a total cash dividend
 Profit distribution plan
                                                          amount of CNY 6,219,148,324.03 (tax included). Where
                                                          any change occurs to the Company's total share capital
                                                          before the implementation of the distribution plan,
                                                          relevant adjustments shall be made with the same total
                                                          distribution amount.
There are no important sales returning after balance sheet date.
Completing the payment and registration of reserved restricted shares
According to the 26th Meeting of the 10th Board of Directors of the Company held on 29 December
the requirements of Administrative Measures for Equity Incentive of Listed Companies and other
relevant laws and the 2021 Restricted Share Incentive Plan (Draft) of Luzhou Laojiao Co., Ltd., the
conditions for the reserved grant under the Restricted Share Incentive Plan had been fulfilled, and the
awardees met the requirements of relevant laws, administrative rules, departmental regulations and
normative document and their qualifications of the awardees of Restricted Share Incentive Plan are
legal and valid. Therefore, the Board agreed to grant 92,669 restricted shares to 17 eligible awardees at
CNY 89.466 per share with 29 December 2022 as the date of grant. The Company issued an actual
amount of 92,669 shares to 17 awardees through private offering in the period at a price of CNY 89.466
per share, with a total of CNY 8,290,724.74 granted restricted shares.
As of 15 January 2023, the Company has received a total of CNY 8,290,724.74 from the above 17
awardees for the subscription of restricted shares in monetary capital, of which CNY 92,669.00 was
included in share capital and CNY 8,198,055.74 was included in capital reserve. The listing date of the
granted shares is 17 February 2023. Upon completion of the grant registration, the total number of
shares of the Company increased from 1,471,895,100 to 1,471,987,769, which will not change the
controlling shareholder and the actual controller of the Company.
Except for the above matters, the Company has no other post balance sheet events that need to be
disclosed as of 31 December 2022.
The Company carried out the enterprise annuity payment work normally during the reporting period.
The enterprise annuity funds are paid by both the Company and employees. The Company's
contribution shall not exceed 8% of the Company's total salary in the previous year as stipulated by the
state, and the individual contribution shall be withheld by the Company according to 1% of total salary
of the employee in the previous year.
Except for the business on wine sales, the Company does not operate other businesses that have a
significant impact on operation results. In addition, the Company operates mainly from China and main
assets also located in China, so the Company does not need to disclose segment data.
                                              Item                                                       Amount
Interest expenses of lease liabilities                                                                     1,698,122.32
Simplistically treated short-term lease expenses included into related asset costs or the current
profits/losses                                                                                             8,551,460.53
Simplistically treated low-value asset lease expenses included into related asset costs or the
current profits/losses (except the short-term lease expenses of low-value assets)
Variable lease payments included into related asset costs or the current profits/losses but not
included into lease liabilities to measure
Income from the sublease of right-of-use assets
Total cash outflow related to leases                                                                      23,059,482.91
Profits/losses generated from sale and leaseback transactions
The leased assets of the Company include the buildings and constructions and the land use right
involved in operation. The leasing period of land use right is normally 15-30 years and the lease
contract of land use right generally includes the renewal option clause.
maturity analysis and corresponding liquidity risk management.
As stated in Note 12.2, three saving deposits involved contract disputes in Agricultural Bank of China
Changsha Yingxin Sub-branch, Industrial and Commercial Bank of China Nanyang Zhongzhou Sub-
branch and another bank, with a total amount of CNY 500 million. At present, the investigation of
related cases and the preservation of assets have been under way. The Company has initiated a civil
procedure to recover the loss from the responsible unit.
Taking into account the current amount of assets preserved by the public security authorities and the
contents of the professional legal opinion issued by Beijing Weiheng (Chengdu) Law Firm on 24
February 2023 that “given that since the issuance of the previous legal opinion, a few recovery has
been achieved through the criminal and civil execution, totalling CNY 371 million. At the same time, it is
suggested that the total amount of bad debt provision for the three aforementioned places remain CNY
involved in contractual disputes as of the end of the period, and the amount of the bad debt provision
may be adjusted in the future based on the litigation process and recovery.
Biotechnology Co., Ltd.
On 2 December 2022, the Proposal on the De-registration of Luzhou Baonuo Biotechnology Co., Ltd.
was deliberated and approved on the 25th Meeting of the 10th Board of Directors. Luzhou Baonuo
Biotechnology Co., Ltd. (hereinafter referred to as “Baonuo”) is wholly owned by the Company and
mainly takes charge of the comprehensive use and research as well as result transformation of brewing
by-product and waste. According to the position and schedule of the scientific and technological
research and innovation of the brewing production system of the Company, relevant business of
Baonuo will be taken over by Brewing Company, a subsidiary of the Company, based on which the
Company decided to cancel Baonuo.
Except for the above matters, the Company has no other significant events that can affect investors’
decision that need to be disclosed as of 31 December 2022.
company (all currency unit is CNY, except other statements)
                                                                                                Monetary Unit: CNY
                             Closing Balance                                     Opening Balance
                                  Provision for bad                                   Provision for bad
  Type        Book balance                                        Book balance
                                        debt           Book                                 debt           Book
                       Proporti             Proporti   value               Proporti             Proporti   value
             Amount               Amount                         Amount               Amount
                         on                   on                             on                   on
 Includin
 g:
 Account
 s
 receiva
 bles
 tested      50,000.    100.00    2,500.0              47,500.   1,209,7    100.00    2,223.8              1,207,4
 for             00         %           0                  00      01.49        %           6                77.63
 impairm
 ent by
 the
 portfolio
 Includin
 g:
 Account
 s
 receiva
 bles
 tested
 for         50,000.    100.00    2,500.0              47,500.   1,209,7    100.00    2,223.8              1,207,4
 impairm         00         %           0                  00      01.49        %           6                77.63
 ent on
 the
 portfolio
 with
 charact
 eristics
 of credit
 risk
  Total                                          5.00%                                                   0.18%
Accounts receivables tested for impairment by the portfolio:
                                                                                                        Monetary Unit: CNY
                                                                     Closing Balance
             Item
                                       Book balance               Provision for bad debt                Proportion
 Risk portfolio                                   50,000.00                       2,500.00                            5.00%
 Other portfolios
             Total                                50,000.00                       2,500.00
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable.
□ Applicable ? N/A
Disclosure by aging
                                                                                                        Monetary Unit: CNY
                            Aging                                                      Book balance
 Within 1 year (including 1 year)                                                                                50,000.00
                            Total                                                                                50,000.00
Allowance of provision for bad debt:
                                                                                                        Monetary Unit: CNY
                                                               Current Period
                       Opening                                                                                 Closing
      Type                                               Reversal or
                       Balance        Allowance                           Write-off            Other           Balance
                                                          recovery
 Accounts
 receivables
 tested for              2,223.86             276.14                                                              2,500.00
 impairment by
 the portfolio
      Total              2,223.86             276.14                                                              2,500.00
Note: There is no accounts receivable reversed or recovered with significant amount during the
reporting period.
                                                                                                        Monetary Unit: CNY
                                                                Proportion to total closing
                                                                                                   Closing Balance of
       Company Name                  Closing Balance              balance of accounts
                                                                                                  provision for bad debt
                                                                       receivable
 One-time            sporadic
 customers
             Total                                50,000.00                       100.00%
There are no assets and liabilities formed from the transfer of accounts receivable and continued
involvement during the reporting period.
                                                                                                    Monetary Unit: CNY
                 Item                                Closing Balance                         Opening Balance
 Other receivables                                          12,042,401,844.84                       10,033,554,898.57
                 Total                                      12,042,401,844.84                       10,033,554,898.57
                                                                                                    Monetary Unit: CNY
                Nature                             Closing book balance                  Opening book balance
 Intercourse funds of subsidiaries
 receivable
 Intercourse funds and others                                    11,257,616.61                            6,158,145.13
 Petty cash                                                                                                    2,574.63
 Saving deposits involving contract
 disputes
                 Total                                      12,163,550,573.43                       10,154,093,375.46
Note: 1. The saving deposits involving contract disputes refer to three deposits amounting to CNY
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
contract disputes and have thus been transferred into “other receivables”. As of 31 December 2022, the
closing balance of that fund was CNY 129,049,496.98.
                                                                                                    Monetary Unit: CNY
                                First stage           Second stage             Third stage
   Provision for bad                               Expected loss in the
                          Expected credit loss                             Expected loss in the           Total
         debt                                        duration (credit
                             of the next 12                                  duration (credit
                                                     impairment not
                                 months                                   impairment occurred)
                                                       occurred)
 Balance of 1 January
 Balance of 1 January
 period
 Allowance                            610,251.70                                                           610,251.70
 Balance of 31
 December 2022
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable ? N/A
Disclosure by aging
                                                                                                        Monetary Unit: CNY
                             Aging                                                  Closing balance
 Within 1 year (including 1 year)                                                                       12,030,843,921.37
 Over 3 years                                                                                             129,122,296.98
 Over 5 years                                                                                             129,099,496.98
                             Total                                                                      12,163,550,573.43
Allowance of provision for bad debt:
                                                                                                        Monetary Unit: CNY
                                                             Current Period
                       Opening                                                                                Closing
      Type                                          Reversal or
                       Balance        Allowance                         Write-off             Other           Balance
                                                     recovery
 Other
 receivables
 tested for
 impairment                      0                                                                                     0
 individually
 Other
 receivables
 tested for            538,476.89     610,251.70                                                             1,148,728.59
 impairment by
 the portfolio
      Total                           610,251.70
No such cases for the reporting period.
                                                                                                        Monetary Unit: CNY
                                                                                                           Provisioning
                                                                                      Proportion in
 Company Name               Nature        Closing Balance          Aging                                 amount at period
                                                                                    total receivables
                                                                                                               end
 Luzhou Laojiao        Internal
 Brewing Co., Ltd.     transactions
 Luzhou Laojiao        Internal
 Sales Co., Ltd.       transactions
 Luzhou Dingyi
                       Internal
 Liquor Industry                            418,929,316.46    Within 1 year                   3.44%
                       transactions
 Sales Co., Ltd.
 Luzhou Laojiao
                       Internal             150,162,478.49    Within 1 year                   1.23%
 Electronic
 Commerce Co.,          transactions
 Ltd.
 Agricultural Bank
 of China
 Changsha
 Yingxin Sub-
 branch, Industrial     Saving deposits
 and Commercial         involving                   129,049,496.98     Over 5 years                   1.06%       120,000,000.00
 Bank of China          contract disputes
 Nanyang
 Zhongzhou Sub-
 branch and
 another bank.
       Total                                      11,834,489,805.80                                  97.29%       120,000,000.00
There is no accounts receivable involving government grants in the current period.
There are no other receivables derecognized due to the transfer of financial assets in the current period.
involvement of accounts receivable
No such cases for the reporting period.
                                                                                                              Monetary Unit: CNY
                                        Closing Balance                                         Opening Balance
      Item                                Provision for                                           Provision for
                      Book balance                           Book value      Book balance                           Book value
                                          impairment                                              impairment
 Investment in        3,611,563,148                         3,611,563,148    3,429,436,240                         3,429,436,240
 subsidiary                     .96                                   .96               .91                                   .91
 Investment in
 associates           2,669,970,043                         2,667,402,944    2,624,531,691                         2,621,964,593
 and joint                       .71                                   .91              .80                                   .00
 venture
      Total                               2,567,098.80                                            2,567,098.80
                                 .67                                   .87              .71                                   .91
                                                                                                              Monetary Unit: CNY
                  Opening                             Changes in current period                        Closing         Closing
                  Balance                                              Provision                       Balance        balance of
   Investee
                   (book               Increase        Decrease           for           Other           (book        provision for
                   value)                                             impairment                        value)       impairment
 Luzhou          59,136,031.                                                          17,817,693.    76,953,725.
 Pinchuang               69                                                                   63             32
 Technology
 Co., Ltd.
 Luzhou
 Laojiao         110,966,255                                                94,798,800.    205,765,05
 Sales Co.,               .34                                                       22           5.56
 Ltd.
 Luzhou
 Laojiao          3,176,693,8                                               57,485,392.    3,234,179,2
 Brewing                36.28                                                       03           28.31
 Co., Ltd.
 Luzhou
 Laojiao
 Internationa
 l                5,706,190.4                                               3,317,446.5    9,023,636.9
 Developme                  0                                                         6              6
 nt (Hong
 Kong) Co.,
 Ltd.
 Luzhou
 Laojiao
 Electronic
 Commerce                 26                                                          8            34
 Co., Ltd.
 Luzhou
 Baonuo           20,000,000.                                                              20,000,000.
 Biotechnolo              00                                                                       00
 gy Co., Ltd.
 Luzhou
 Laojiao
 Tourism
 Culture Co.,               0                            0
 Ltd.
 Luzhou
 Laojiao
 Health
 Liquor             408,600.94
 Industry                                                                             3              7
 Co., Ltd.
 Note
    Total
                                                                                                   Monetary Unit: CNY
                                               Changes in current period
                                                                                                             Closin
             Openin                         Gain     Adjust                                         Closin     g
               g                          or loss    ments              Cash                          g      Balanc
 Investe     Balanc                       recogn        of    Chang    divided   Provisi            Balanc    e of
    e          e       Increa    Decrea     ized      other    es in      or     on for               e      provisi
                                                                                           Other
             (book       se        se      under     compr    other     profit   impair             (book    on for
             value)                        equity    ehensi   equity   declar     ment              value)   impair
                                          metho        ve                 ed                                  ment
                                              d     income
 Huaxi                                                   -
 Securit                                            12,402                                                   2,567,
 ies                                                ,376.1                                                   098.80
 Co.,           5.33                           1                             0                        2.05
 Ltd.
 Luzho
 u
 Laojiao
 Postdo
 ctoral
 Workst                40,000                                                                               40,185
 ation                 ,000.0                                                                               ,894.7
 Techno                                        4.77
 logy
 Innova
 tion
 Co.,
 Ltd.
 Sichua
 n
 Develo
 pment
 Wine
 Invest       848.36                           5.88                                                         654.24
 ment
 Co.,
 Ltd.
 CTS
 Luzho
 u
 Laojiao
 Cultura      122,90                                                                                        123,78
 l                                           877,22
 Touris                                        4.54
 m                31                                                                                            85
 Develo
 pment
 Co.,
 Ltd.
 Subtot                                               12,402                                                          2,567,
   al                                                 ,376.1                                                          098.80
  Total       964,59   ,000.0                ,842.5                            ,114.4                       402,94
                                                      ,376.1                                                          098.80
                                                                                                           Monetary Unit: CNY
                                            Current Period                                     Previous Period
           Item
                                  Revenue                  Cost of sales                Revenue             Cost of sales
 Primary business               8,390,524,714.12        6,176,755,863.73           7,558,340,885.88         5,664,019,938.24
 Other business                   19,908,823.14                1,309,332.64             44,286,894.17            1,137,093.20
           Total                8,410,433,537.26        6,178,065,196.37           7,602,627,780.05         5,665,157,031.44
Details:
                                                                                                           Monetary Unit: CNY
  Contract category                         Liquor sales                                           Total
 Commodity type
 Including:
Medium and high
grade liquor
Other liquor                            28,736,883.84                                   28,736,883.84
By operating
segment
Including:
Domestic                              8,390,524,714.12                               8,390,524,714.12
Outbound
Market or customer
type
Including:
Contract type
Including:
Commodity sales
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total                                 8,390,524,714.12                               8,390,524,714.12
                                                                                   Monetary Unit: CNY
                   Item               Current Period                        Previous Period
Investment income from long-term
equity investments under cost                 7,777,018,295.87                      6,296,151,637.80
method
Investment income from long-term
equity investments under equity                  45,123,842.50                        171,693,567.56
method
Investment income gained during the
period of holding held-for-trading                6,813,617.83
financial assets
Investment income from disposal of
held-for-trading financial assets
Dividends income gained during the
period of holding other equity                    8,078,717.93                           6,657,660.52
instrument investment
Investment income from early
                                                 -4,241,494.76
redemption of bonds
                Total                         7,842,231,445.15                      6,474,502,865.88
Note: There is no major restriction on the repatriation of the Company's investment income.
Including: investment income from long-term equity investments under the cost method:
                               Item                              Current Period              Previous Period
Luzhou Laojiao Sales Co., Ltd.                                     7,709,806,254.66                6,269,283,588.58
Luzhou Baonuo Biotechnology Co., Ltd.                                 10,515,293.70
Luzhou Pinchuang Technology Co., Ltd.                                 30,991,503.61                  26,868,049.22
Luzhou Laojiao International Development(Hong Kong)Co.,
Ltd.
Luzhou Laojiao Tourism Culture Co., Ltd.                                  7,634,894.90
                             Subtotal                              7,777,018,295.87                6,296,151,637.80
Including: investment income from long-term equity investments under the equity method:
                              Item                               Current Period                Previous Period
Huaxi Securities Co.,Ltd.                                                   43,897,917.31           169,638,351.75
Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co., Ltd.
Sichuan Development Wine Investment Co., Ltd.                                  162,805.88             -1,127,623.31
CTS Luzhou Laojiao Cultural Tourism Development Co.,
Ltd.
                            Subtotal                                        45,123,842.50           171,693,567.56
Including: dividend income gained during the period of holding other equity instrument investment:
                               Item                              Current Period              Previous Period
North Chemical Industries Co.,Ltd.                                          70,359.97                    62,542.20
Guotai Junan Securities Co.,Ltd.                                          8,008,357.96                 6,595,118.32
                             Subtotal                                     8,078,717.93                 6,657,660.52
gain, - for loss)
? Applicable □ N/A
                                                                                              Monetary Unit: CNY
                  Item                           Amount                                     Note
 Gains or losses on disposal non-
 current assets
 Government grants included into
 current profits and losses (other than
 government grants closely related to                                      For details please see Note 7.42 and
 enterprise business and granted by                                        Note 7.47
 quota or quantity according to
 national unified standard)
 Gain or loss on fair-value changes on
                                                          -2,585,156.72    For details please see Note 7.43
 held-for-trading financial assets and
 liabilities & income from disposal of
 held-for-trading financial assets and
 liabilities and available-for-sale
 financial assets (exclusive of the
 effective portion of hedges that arise
 in the Company’s ordinary course of
 business)
 Other non-operating income and                                            For details please see Note 7.47 and
 costs other than above items                                              Note 7.48
 Less: Impact from income tax                             14,413,895.31
      Impact from non-controlling
 shareholders’ equity
                  Total                                   43,902,044.87                     --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable ? N/A ?
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities
to the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
□ Applicable ? N/A
    Profit during reporting                                                EPS(CNY/Share)
                                  Weighted average ROE
            period                                            Basic EPS                     Diluted EPS
 Net profits attributable to
 common shareholders of                          33.32%                       7.06                         7.06
 the Company
 Net profits attributable to
 common shareholders of
 the Company before non-
 recurring gains and losses
accounting standards
international and Chinese accounting standards
□ Applicable ? N/A
overseas and Chinese accounting standards
□ Applicable ? N/A

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